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 | 811-21731 | |||||
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Nuveen Equity Premium Advantage Fund | ||||||
(Exact name of registrant as specified in charter) | ||||||
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Nuveen Investments | ||||||
(Address of principal executive offices) (Zip code) | ||||||
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Kevin J. McCarthy | ||||||
(Name and address of agent for service) | ||||||
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Registrant’s telephone number, including area code: | (312) 917-7700 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2009 |
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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 policymaking 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.
Closed-End Funds
Nuveen Investments
Closed-End Funds
Attractive Quarterly Distributions and a Measure of Downside Protection from an Integrated Index Option and Equity Strategy
Annual Report
December 31, 2009
Nuveen Equity Premium Income Fund
JPZ
Nuveen Equity Premium Opportunity Fund
JSN
Nuveen Equity Premium Advantage Fund
JLA
Nuveen Equity Premium and Growth Fund
JPG
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Chairman's
Letter to Shareholders
Dear Shareholder,
The financial markets in which your Fund operates continue to reflect the larger economic crosscurrents. The illiquidity that infected global credit markets over the last year continues to recede but there is concern about the impact of a reduction in official liquidity support programs. The major institutions that are the linchpin of the international financial system have strengthened their capital structures, but many still struggle with losses in their various portfolios. Global trends include increasing trade and concern about the ability of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded in late 2008 and early 2009, identifying those developments that will define the future is never easy, and rarely is it more difficult than at present. A fundamental component of a successful investment program is a commitment to remain focused on long-term investment goals even during periods of heightened market uncertainty. Another component is to re-evaluate investment disciplines and tactics and to confirm their validity following periods of extreme volatility and market dislocation, such as we have recently experienced. Your Board carried out an intensive review of investment performance with these objectives in mind during April and May of 2009 as part of the annual management contract renewal process. I encourage you to read the description of this process in the Annual Investment Management Agreement Approval Process section of this report. Confirming the appropriateness of a long term investment strategy is as important for our shareholders as it is for our professional investment managers. For that reason, I again encourage you to remain in communication with your financial consultant on this subject.
On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board and Lead Independent Director
February 22, 2010
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Portfolio Managers' Comments
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.
Nuveen Equity Premium Income Fund (JPZ)
Nuveen Equity Premium Opportunity Fund (JSN)
Nuveen Equity Premium Advantage Fund (JLA)
Nuveen Equity Premium and Growth Fund (JPG)
These Funds feature portfolio management by Gateway Investment Advisers, LLC. J. Patrick Rogers and Kenneth H. Toft serve as co-portfolio managers for JSN and JLA; Patrick and Michael T. Buckius are co-portfolio managers for JPZ and JPG. Patrick joined Gateway in 1989 and is a member of its Board, President and has been Chief Executive Officer since 2006. Ken joined Gateway in 1992 and has been a Vice President and Portfolio Manager since 1997. Mike joined Gateway in 1999 and is currently Senior Vice President and Portfolio Manager. Here they talk about economic and market conditions, their management strategies and the performance of the Funds for the twelve months ended December 31, 2009.
What were the general market conditions during the twelve-month period ending December 31, 2009?
The general market conditions during this period were among the most fluctuating and challenging on record. The financial crisis that began to accelerate in the last half of 2008 was in full force by the first quarter of 2009. For the first time since the 1930s, the United States, United Kingdom, Germany and Japan experienced recessions simultaneously.
In response, the U.S. government enacted a $787 billion economic stimulus plan early in 2009, and provided additional funds for large financial institutions under the Troubled Asset Relief Program (TARP) started in 2008. The Federal Reserve Board (the "Fed") maintained a fed funds target range of zero to 0.25%, its lowest level in history. In addition, the Fed announced in March that it would buy $300 billion in long-term Treasury securities in an effort to support private credit markets and up to an additional $750 billion (for a total of $1.25 trillion) in agency mortgage-backed securities to bolster the housing market. The government also took steps to prevent the collapse of the American auto industry.
By the second quarter of 2009, some positive signals began to emerge. Most major banks seemed to have raised sufficient capital to survive in the downturn, with several of them even appearing to thrive. Domestic equity markets, as measured by the S&P 500 Index, rocketed up from the lows experienced in March. Bond investors seemed more willing to hold municipal and corporate securities, causing the pricing relationships between these issues and U.S. Treasury securities to adjust toward historical norms.
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Counterbalancing these trends, the unemployment rate at year end was 10% and the general credit markets were still constricted, suggesting that the road to full recovery would not be quick or easy.
The year 2009 was an extraordinary period for both stock and option markets. During the period January 1 through March 9, 2009, the S&P 500 Index and NASDAQ-100 Index were down 24.63% and 13.68%, respectively. At year end, the S&P 500 Stock Index managed to post a positive return for 2009 of 26.46% with most major bond indexes also showing positive performance.
As one might expect in a year of such stock market extremes, volatility remained high throughout the year. The average level for the Chicago Board Options Exchange Volatility Index (the "VIX") during the year was 31.5, well-above its historical average. While the VIX is derived from S&P 500 Index option activity, its equivalent for the NASDAQ-100 Index, (the "VXN") posted a yearly average of over 31.8, a level also above its historical average.
Over this period, what key strategies were used to manage the Funds?
The core strategy employed in each Fund consists of an investment in a broadly diversified portfolio of equity securities that seeks to substantially track the price movement of a stock market index or a custom blend of stock market indexes. The primary purpose of each equity portfolio is to support the index option-based risk management strategy employed by each Fund. These strategies remained consistent in each Fund throughout the period.
For JPZ and JPG, the equity portfolio seeks to track the price movements of the Standard and Poor's (S&P) 500 Stock Index. The JSN equity portfolio is invested to replicate the price performance of a custom index consisting of 75% S&P 500 Index and 25% NASDAQ-100 Index. JLA seeks to replicate a 50/50 blend of the S&P 500 and NASDAQ-100 Indexes. JPZ, JSN and JLA actively write (sell) listed index call options against substantially all of their entire stock portfolios. JPG differs in that its index option hedging activity is applied to 80% of the value of the equity portfolio.
During this period, the Fund's Board of Trustees removed the limitation that had allowed JPZ to purchase non-US securities only from developed countries. The Fund now is allowed to hold up to 20% of its equity portfolio in U.S. dollar-denominated common stocks of non-U.S. issuers with no limitation regarding whether these non-U.S. issuers are from developed or emerging market countries. This change establishes consistent policies across all four of these Funds.
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Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.
Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report.
1 The S&P 500 Stock Index is an unmanaged Index generally considered representative of the U.S. stock market. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index.
2 JSN comparative index performance is a blended return consisting of: 1) 75% of the return of the S&P 500 Stock Index, and 2) 25% of the NASDAQ-100 Index, which includes 100 of the largest domestic and international non-financial companies listed on the NASDAQ Stock Market based on market capitalization. The NASDAQ-100 Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index.
3 JLA comparative index performance is a blended return consisting of: 1) 50% of the return of the S&P 500 Stock Index, and 2) 50% of the NASDAQ-100 Index. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index.
How did the Funds perform over this period?
The performance of JPZ, JSN, JLA and JPG, as well as comparative indexes, is presented in the accompanying table.
Average Annual Total Returns on Net Asset Value (NAV)
For periods ended 12/31/09
One-Year | Five-Year | Since Inception* | |||||||||||||
JPZ | 13.74 | % | 1.69 | % | 1.96 | % | |||||||||
S&P 500 Stock Index1 | 26.46 | % | 0.42 | % | 1.84 | % | |||||||||
JSN | 16.39 | % | N/A | 2.27 | % | ||||||||||
Comparative Index2 | 32.89 | % | N/A | 1.33 | % | ||||||||||
JLA | 20.21 | % | N/A | 2.23 | % | ||||||||||
Comparative Index3 | 39.55 | % | N/A | 1.88 | % | ||||||||||
JPG | 14.77 | % | N/A | 0.50 | % | ||||||||||
S&P 500 Stock Index1 | 26.46 | % | N/A | -0.65 | % |
* Since inception returns for JPZ are as of 10/26/04, for JSN as of 1/26/05, for JLA as of 5/25/05, and for JPG as of 11/22/05. Index returns, which are based on month end data, begin at the end of the month of the Fund's inception.
The strong equity markets over the period from March 9, 2009, to December 31, 2009, had a very positive impact on the values of the Funds' stock portfolios and their comparative equity indexes. For example, the S&P 500 Stock Index and the NASDAQ-100 Index were up 67.80% and 79.13%, respectively, during this specific time period, more than offsetting their poor performance in the first nine weeks of 2009.
As noted earlier, each of these Funds seeks to manage risk by selling index option calls covering the value of much or all of each Fund's equity holdings. This strategy provides incremental cash flow to the Funds, but also effectively limits the amount of upside potential the Funds can get from their equity holdings. In neutral or rapidly declining equity market environments, this additional cash flow may lead to opportunities for relative outperformance. However, in a market environment marked by sharply rising equity prices, as was the case in most of the past calendar year, the Funds' call option strategies may place them at a comparative performance disadvantage – as can be seen in the Funds' 2009 results.
As management fully expects the Funds to lag the equity markets during substantial market rallies, we believe investors should not lose sight of the potential risk reduction benefits provided by the Fund's index option strategies. The heightened equity market volatility in 2009 that we noted earlier resulted in continued strong cash flow from each Fund's index call option transactions. This increased cash flow served two important purposes: first, more cash was available to support the Funds' quarterly distributions, and second, the higher premiums received helped lower the overall risk profiles of the Funds. All of the Funds produced positive, double-digit returns in 2009, compared with negative performance in 2008. In particular, each Fund posted a NAV return of 5% or greater in the second, third and fourth quarters of 2009.
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Distribution and Share Price Information
The following information regarding your Fund's distributions is current as of December 31, 2009, and likely will vary over time based on each Fund's investment activities and portfolio investment value changes.
JPZ reduced its quarterly distribution to shareholders once over the course of 2009. Some of the factors affecting these distributions are summarized below.
Each Fund has a managed distribution program. The goal of this program is to provide shareholders with relatively consistent and predictable cash flow by systematically converting the Fund's expected long-term return potential into regular distributions. As a result, regular distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.
Important points to understand about the managed distribution program are:
• Each Fund seeks to establish a relatively stable distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Fund's past or future investment performance from its current distribution rate.
• Actual returns will differ from projected long-term returns (and therefore a Fund's distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value.
• Each distribution is expected to be paid from some or all of the following sources:
• net investment income (regular interest and dividends),
• realized capital gains, and
• unrealized gains, or, in certain cases, a return of principal (non-taxable distributions).
• A non-taxable distribution is a payment of a portion of a Fund's capital. When a Fund's returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Fund's return falls short of distributions, the shortfall will represent a portion of your original principal, unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when a Fund's total return exceeds distributions.
• Because distribution source estimates are updated during the year based on a Fund's performance and forecast for its current fiscal year (which is the calendar year for each
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Fund), estimates on the nature of your distributions provided at the time distributions are paid may differ from both the tax information reported to you in your Fund's IRS Form 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment.
The following table provides information regarding each Fund's distributions and total return performance for the fiscal year ended December 31, 2009. This information is intended to help you better understand whether the Fund's returns for the specified time period were sufficient to meet each Fund's distributions.
As of 12/31/09 | JPZ | JSN | JLA | JPG | |||||||||||||||
Inception date | 10/26/04 | 1/26/05 | 5/25/05 | 11/22/05 | |||||||||||||||
Calendar year ended December 31, 2009: | |||||||||||||||||||
Per share distribution: | |||||||||||||||||||
From net investment income | $ | 0.28 | $ | 0.22 | $ | 0.14 | $ | 0.27 | |||||||||||
From long-term capital gains | 0.24 | 0.00 | 0.00 | 0.21 | |||||||||||||||
From short-term capital gains | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
Tax return of capital | 0.77 | 1.12 | 1.18 | 0.64 | |||||||||||||||
Total per share distribution | $ | 1.29 | $ | 1.34 | $ | 1.32 | $ | 1.12 | |||||||||||
Distribution rate on NAV | 9.86 | % | 10.08 | % | 9.75 | % | 8.07 | % | |||||||||||
Annualized total returns: | |||||||||||||||||||
1-Year on NAV | 13.74 | % | 16.39 | % | 20.21 | % | 14.77 | % | |||||||||||
Since inception on NAV | 1.96 | % | 2.27 | % | 2.23 | % | 0.50 | % |
Common Share Repurchases and Share Price Information
As of December 31, 2009, the Funds had cumulatively repurchased common shares as shown in the accompanying table.
Fund | Common Shares Repurchased | % of Outstanding Common Shares | |||||||||
JPZ | 264,200 | 0.7 | % | ||||||||
JSN | 479,300 | 0.7 | % | ||||||||
JLA | 268,050 | 1.0 | % | ||||||||
JPG | 224,700 | 1.4 | % |
During the twelve-month reporting period, the Funds repurchased common shares at a weighted average price and a weighted average discount per common share as shown in the accompanying table.
Fund | Common Shares Repurchased | Weighted Average Price Per Share Repurchased | Weighted Average Discount Per Share Repurchased | ||||||||||||
JPZ | 136,900 | $ | 9.36 | 18.71 | % | ||||||||||
JSN | 285,200 | $ | 9.42 | 19.14 | % | ||||||||||
JLA | 141,550 | $ | 9.50 | 20.16 | % | ||||||||||
JPG | 90,400 | $ | 9.19 | 20.34 | % |
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As of December 31, 2009, the Funds' share prices were trading relative to their NAVs as shown in the accompanying table.
Fund | 12/31/09 Discount | Twelve-Month Average Discount | |||||||||
JPZ | -0.61 | % | -9.92 | % | |||||||
JSN | -0.75 | % | -9.80 | % | |||||||
JLA | -3.47 | % | -11.51 | % | |||||||
JPG | -5.62 | % | -10.98 | % |
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Fund Snapshot
Share Price | $ | 13.00 | |||||
Net Asset Value | $ | 13.08 | |||||
Premium/(Discount) to NAV | -0.61 | % | |||||
Current Distribution Rate1 | 9.85 | % | |||||
Net Assets ($000) | $ | 502,488 |
Average Annual Total Return
(Inception 10/26/04)
On Share Price | On NAV | ||||||||||
1-Year | 35.46 | % | 13.74 | % | |||||||
5-Year | 1.19 | % | 1.69 | % | |||||||
Since Inception | 1.53 | % | 1.96 | % |
Industries
(as a % of total common stocks)
Oil, Gas & Consumable Fuels | 9.6 | % | |||||
Pharmaceuticals | 8.2 | % | |||||
Computers & Peripherals | 4.8 | % | |||||
Software | 4.4 | % | |||||
Diversified Financial Services | 4.3 | % | |||||
Diversified Telecommunication Services | 4.0 | % | |||||
Commercial Banks | 2.8 | % | |||||
Industrial Conglomerates | 2.8 | % | |||||
Communications Equipment | 2.6 | % | |||||
Aerospace & Defense | 2.6 | % | |||||
Semiconductors & Equipment | 2.5 | % | |||||
Household Products | 2.5 | % | |||||
Energy Equipment & Services | 2.4 | % | |||||
Internet Software & Services | 2.3 | % | |||||
Beverages | 2.3 | % | |||||
Chemicals | 2.3 | % | |||||
Media | 2.3 | % | |||||
Machinery | 2.2 | % | |||||
Food & Staples Retailing | 2.2 | % | |||||
Specialty Retail | 2.1 | % | |||||
Health Care Providers & Services | 2.1 | % | |||||
Insurance | 2.0 | % | |||||
Real Estate Investment Trust | 1.9 | % | |||||
Multi-Utilities | 1.9 | % | |||||
Tobacco | 1.9 | % | |||||
Capital Markets | 1.8 | % | |||||
Other | 19.2 | % |
JPZ
Performance
OVERVIEW
Nuveen Equity Premium Income Fund
as of December 31, 2009
Fund Allocation (as a % of total net assets)
2008-2009 Distributions Per Share
Share Price Performance — Weekly Closing Price
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.
2 Other assets less liabilities.
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JSN
Performance
OVERVIEW
Nuveen Equity Premium Opportunity Fund
as of December 31, 2009
Fund Allocation (as a % of total net assets)
2008-2009 Distributions Per Share
Share Price Performance — Weekly Closing Price
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.
2 Other assets less liabilities.
Fund Snapshot
Share Price | $ | 13.20 | |||||
Net Asset Value | $ | 13.30 | |||||
Premium/(Discount) to NAV | -0.75 | % | |||||
Current Distribution Rate1 | 10.18 | % | |||||
Net Assets ($000) | $ | 878,321 |
Average Annual Total Return
(Inception 1/26/05)
On Share Price | On NAV | ||||||||||
1-Year | 38.49 | % | 16.39 | % | |||||||
Since Inception | 1.79 | % | 2.27 | % |
Industries
(as a % of total common stocks)
Computers & Peripherals | 9.1 | % | |||||
Software | 7.1 | % | |||||
Oil, Gas & Consumable Fuels | 6.7 | % | |||||
Pharmaceuticals | 6.0 | % | |||||
Communications Equipment | 5.2 | % | |||||
Internet Software & Services | 4.4 | % | |||||
Semiconductors & Equipment | 3.8 | % | |||||
Biotechnology | 3.3 | % | |||||
Diversified Financial Services | 3.0 | % | |||||
Media | 3.0 | % | |||||
Diversified Telecommunication Services | 2.5 | % | |||||
Capital Markets | 2.3 | % | |||||
Food & Staples Retailing | 2.3 | % | |||||
Aerospace & Defense | 2.1 | % | |||||
Commercial Banks | 2.1 | % | |||||
Health Care Providers & Services | 2.0 | % | |||||
Specialty Retail | 1.9 | % | |||||
Household Products | 1.9 | % | |||||
Energy Equipment & Services | 1.9 | % | |||||
Machinery | 1.9 | % | |||||
Health Care Equipment & Supplies | 1.9 | % | |||||
Beverages | 1.9 | % | |||||
Chemicals | 1.8 | % | |||||
Industrial Conglomerates | 1.6 | % | |||||
Electrical Equipment | 1.5 | % | |||||
Other | 18.8 | % |
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Fund Snapshot
Share Price | $ | 13.07 | |||||
Net Asset Value | $ | 13.54 | |||||
Premium/(Discount) to NAV | -3.47 | % | |||||
Current Distribution Rate1 | 10.13 | % | |||||
Net Assets ($000) | $ | 349,898 |
Average Annual Total Return
(Inception 5/25/05)
On Share Price | On NAV | ||||||||||
1-Year | 41.37 | % | 20.21 | % | |||||||
Since Inception | 1.12 | % | 2.23 | % |
Industries
(as a % of total common stocks)
Computers & Peripherals | 11.5 | % | |||||
Software | 9.5 | % | |||||
Communications Equipment | 7.2 | % | |||||
Internet Software & Services | 5.9 | % | |||||
Semiconductors & Equipment | 5.5 | % | |||||
Biotechnology | 4.8 | % | |||||
Pharmaceuticals | 4.7 | % | |||||
Oil, Gas & Consumable Fuels | 4.5 | % | |||||
Media | 3.6 | % | |||||
Hotels, Restaurants & Leisure | 2.2 | % | |||||
IT Services | 2.2 | % | |||||
Diversified Financial Services | 2.0 | % | |||||
Health Care Providers & Services | 1.8 | % | |||||
Specialty Retail | 1.8 | % | |||||
Diversified Telecommunication Services | 1.8 | % | |||||
Internet & Catalog Retail | 1.7 | % | |||||
Machinery | 1.6 | % | |||||
Health Care Equipment & Supplies | 1.5 | % | |||||
Food & Staples Retailing | 1.4 | % | |||||
Energy Equipment & Services | 1.4 | % | |||||
Capital Markets | 1.4 | % | |||||
Multiline Retail | 1.3 | % | |||||
Aerospace & Defense | 1.3 | % | |||||
Other | 19.4 | % |
JLA
Performance
OVERVIEW
Nuveen Equity Premium Advantage Fund
as of December 31, 2009
Fund Allocation (as a % of total net assets)
2008-2009 Distributions Per Share
Share Price Performance — Weekly Closing Price
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.
2 Other assets less liabilities.
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JPG
Performance
OVERVIEW
Nuveen Equity Premium and Growth Fund
as of December 31, 2009
Fund Allocation (as a % of total net assets)
2008-2009 Distributions Per Share
Share Price Performance — Weekly Closing Price
1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.
2 Other assets less liabilities.
Fund Snapshot
Share Price | $ | 13.09 | |||||
Net Asset Value | $ | 13.87 | |||||
Premium/(Discount) to NAV | -5.62 | % | |||||
Current Distribution Rate1 | 8.56 | % | |||||
Net Assets ($000) | $ | 226,187 |
Average Annual Total Return
(Inception 11/22/05)
On Share Price | On NAV | ||||||||||
1-Year | 33.63 | % | 14.77 | % | |||||||
Since Inception | -1.17 | % | 0.50 | % |
Industries
(as a % of total common stocks)
Oil, Gas & Consumable Fuels | 10.2 | % | |||||
Pharmaceuticals | 8.5 | % | |||||
Computers & Peripherals | 4.7 | % | |||||
Software | 4.7 | % | |||||
Diversified Telecommunication Services | 3.9 | % | |||||
Diversified Financial Services | 3.8 | % | |||||
Communications Equipment | 2.9 | % | |||||
Industrial Conglomerates | 2.8 | % | |||||
Semiconductors & Equipment | 2.7 | % | |||||
Aerospace & Defense | 2.7 | % | |||||
Capital Markets | 2.7 | % | |||||
Household Products | 2.6 | % | |||||
Specialty Retail | 2.6 | % | |||||
Commercial Banks | 2.6 | % | |||||
Machinery | 2.6 | % | |||||
Chemicals | 2.5 | % | |||||
Internet Software & Services | 2.4 | % | |||||
Multi-Utilities | 2.3 | % | |||||
Energy Equipment & Services | 2.3 | % | |||||
Food & Staples Retailing | 2.2 | % | |||||
Beverages | 2.2 | % | |||||
Insurance | 2.1 | % | |||||
Health Care Providers & Services | 2.0 | % | |||||
Tobacco | 1.9 | % | |||||
Real Estate Investment Trust | 1.7 | % | |||||
Other | 18.4 | % |
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Report of INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
Nuveen Equity Premium Income Fund
Nuveen Equity Premium Opportunity Fund
Nuveen Equity Premium Advantage Fund
Nuveen Equity Premium and Growth Fund
In our opinion, the accompanying statement of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Equity Premium Income Fund, Nuveen Equity Premium Opportunity Fund, Nuveen Equity Premium Advantage Fund, and Nuveen Equity Premium and Growth Fund (the "Funds") at December 31, 2009, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the periods then ended and the financial highlights for each of the periods indicated in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our respo nsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
February 25, 2010
Nuveen Investments
12
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Nuveen Equity Premium Income Fund
Portfolio of INVESTMENTS
December 31, 2009
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.5% | |||||||||||
Aerospace & Defense – 2.5% | |||||||||||
50,389 | Boeing Company | $ | 2,727,557 | ||||||||
87,200 | Honeywell International Inc. | 3,418,240 | |||||||||
29,605 | Raytheon Company | 1,525,250 | |||||||||
72,061 | United Technologies Corporation | 5,001,754 | |||||||||
Total Aerospace & Defense | 12,672,801 | ||||||||||
Air Freight & Logistics – 0.7% | |||||||||||
64,277 | United Parcel Service, Inc., Class B | 3,687,571 | |||||||||
Airlines – 0.1% | |||||||||||
37,484 | AMR Corporation, (2) | 289,751 | |||||||||
16,213 | Continental Airlines, Inc., (2) | 290,537 | |||||||||
Total Airlines | 580,288 | ||||||||||
Auto Components – 0.1% | |||||||||||
30,296 | Cooper Tire & Rubber | 607,435 | |||||||||
Automobiles – 0.7% | |||||||||||
241,200 | Ford Motor Company, (2) | 2,412,000 | |||||||||
41,681 | Harley-Davidson, Inc. | 1,050,361 | |||||||||
Total Automobiles | 3,462,361 | ||||||||||
Beverages – 2.3% | |||||||||||
111,623 | Coca-Cola Company | 6,362,511 | |||||||||
82,498 | PepsiCo, Inc. | 5,015,878 | |||||||||
Total Beverages | 11,378,389 | ||||||||||
Biotechnology – 1.1% | |||||||||||
52,285 | Amgen Inc., (2) | 2,957,762 | |||||||||
24,559 | Celgene Corporation, (2) | 1,367,445 | |||||||||
28,599 | Gilead Sciences, Inc., (2) | 1,237,765 | |||||||||
Total Biotechnology | 5,562,972 | ||||||||||
Building Products – 0.1% | |||||||||||
42,748 | Masco Corporation | 590,350 | |||||||||
Capital Markets – 1.8% | |||||||||||
84,344 | Charles Schwab Corporation | 1,587,354 | |||||||||
48,534 | Jefferies Group, Inc., (2) | 1,151,712 | |||||||||
40,593 | Legg Mason, Inc. | 1,224,285 | |||||||||
123,866 | Morgan Stanley | 3,666,434 | |||||||||
38,635 | Waddell & Reed Financial, Inc., Class A | 1,179,913 | |||||||||
Total Capital Markets | 8,809,698 |
Nuveen Investments
13
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Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Chemicals – 2.2% | |||||||||||
51,511 | Dow Chemical Company | $ | 1,423,249 | ||||||||
106,397 | E.I. Du Pont de Nemours and Company | 3,582,387 | |||||||||
28,359 | Eastman Chemical Company | 1,708,346 | |||||||||
3,643 | Lubrizol Corporation | 265,757 | |||||||||
23,288 | Monsanto Company | 1,903,794 | |||||||||
16,700 | NL Industries Inc. | 115,898 | |||||||||
53,293 | Olin Corporation | 933,693 | |||||||||
63,622 | RPM International, Inc. | 1,293,435 | |||||||||
Total Chemicals | 11,226,559 | ||||||||||
Commercial Banks – 2.7% | |||||||||||
33,724 | Comerica Incorporated | 997,219 | |||||||||
30,047 | HSBC Holdings PLC, Sponsored ADR | 1,715,383 | |||||||||
2,649 | Toronto-Dominion Bank | 166,145 | |||||||||
177,092 | U.S. Bancorp | 3,986,341 | |||||||||
257,392 | Wells Fargo & Company | 6,947,010 | |||||||||
Total Commercial Banks | 13,812,098 | ||||||||||
Commercial Services & Supplies – 0.9% | |||||||||||
3,177 | Avery Dennison Corporation | 115,929 | |||||||||
56,149 | Deluxe Corporation | 830,444 | |||||||||
40,642 | Pitney Bowes Inc. | 925,012 | |||||||||
21,600 | R.R. Donnelley & Sons Company | 481,032 | |||||||||
24,100 | Standard Register Company | 122,910 | |||||||||
59,938 | Waste Management, Inc. | 2,026,504 | |||||||||
Total Commercial Services & Supplies | 4,501,831 | ||||||||||
Communications Equipment – 2.6% | |||||||||||
14,156 | ADTRAN, Inc. | 319,218 | |||||||||
8,005 | Ciena Corporation, (2) | 86,774 | |||||||||
294,113 | Cisco Systems, Inc., (2) | 7,041,065 | |||||||||
11,034 | JDS Uniphase Corporation, (2) | 91,031 | |||||||||
221,002 | Motorola, Inc., (2) | 1,714,976 | |||||||||
77,162 | QUALCOMM, Inc. | 3,569,514 | |||||||||
2,604 | Research In Motion Limited, (2) | 175,874 | |||||||||
Total Communications Equipment | 12,998,452 | ||||||||||
Computers & Peripherals – 4.7% | |||||||||||
45,412 | Apple, Inc., (2) | 9,575,574 | |||||||||
95,726 | Dell Inc., (2) | 1,374,625 | |||||||||
139,379 | EMC Corporation, (2) | 2,434,951 | |||||||||
78,040 | International Business Machines Corporation (IBM) | 10,215,436 | |||||||||
19,534 | Sun Microsystems Inc., (2) | 183,034 | |||||||||
Total Computers & Peripherals | 23,783,620 | ||||||||||
Consumer Finance – 0.1% | |||||||||||
42,236 | Discover Financial Services | 621,292 | |||||||||
Containers & Packaging – 0.4% | |||||||||||
65,406 | Packaging Corp. of America | 1,504,992 | |||||||||
18,902 | Sonoco Products Company | 552,884 | |||||||||
Total Containers & Packaging | 2,057,876 | ||||||||||
Distributors – 0.3% | |||||||||||
40,469 | Genuine Parts Company | 1,536,203 |
Nuveen Investments
14
Shares | Description (1) | Value | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
7,623 | Apollo Group, Inc., Class A, (2) | $ | 461,801 | ||||||||
Diversified Financial Services – 4.2% | |||||||||||
397,961 | Bank of America Corporation | 5,993,293 | |||||||||
350,485 | Citigroup Inc. | 1,160,105 | |||||||||
7,355 | CME Group, Inc. | 2,470,912 | |||||||||
253,782 | JPMorgan Chase & Co. | 10,575,096 | |||||||||
43,506 | New York Stock Exchange Euronext | 1,100,702 | |||||||||
Total Diversified Financial Services | 21,300,108 | ||||||||||
Diversified Telecommunication Services – 4.0% | |||||||||||
436,072 | AT&T Inc. | 12,223,098 | |||||||||
206,568 | Frontier Communications Corporation | 1,613,296 | |||||||||
176,286 | Verizon Communications Inc. | 5,840,355 | |||||||||
20,804 | Windstream Corporation | 228,636 | |||||||||
Total Diversified Telecommunication Services | 19,905,385 | ||||||||||
Electric Utilities – 1.5% | |||||||||||
3,600 | DPL Inc. | 99,360 | |||||||||
131,100 | Duke Energy Corporation | 2,256,231 | |||||||||
27,323 | Great Plains Energy Incorporated | 529,793 | |||||||||
80,800 | Pepco Holdings, Inc. | 1,361,480 | |||||||||
33,445 | Progress Energy, Inc. | 1,371,579 | |||||||||
58,348 | Southern Company | 1,944,155 | |||||||||
Total Electric Utilities | 7,562,598 | ||||||||||
Electrical Equipment – 1.0% | |||||||||||
101,834 | Emerson Electric Company | 4,338,128 | |||||||||
15,759 | Rockwell Automation, Inc. | 740,358 | |||||||||
Total Electrical Equipment | 5,078,486 | ||||||||||
Electronic Equipment & Instruments – 0.5% | |||||||||||
126,298 | Corning Incorporated | 2,438,814 | |||||||||
Energy Equipment & Services – 2.4% | |||||||||||
8,007 | Diamond Offshore Drilling, Inc. | 788,049 | |||||||||
21,795 | ENSCO International PLC, Sponsored ADR | 870,492 | |||||||||
110,699 | Halliburton Company | 3,330,933 | |||||||||
7,759 | Patterson-UTI Energy, Inc. | 119,101 | |||||||||
77,722 | Schlumberger Limited | 5,058,925 | |||||||||
18,335 | Smith International, Inc. | 498,162 | |||||||||
28,716 | Tidewater Inc. | 1,376,932 | |||||||||
Total Energy Equipment & Services | 12,042,594 | ||||||||||
Food & Staples Retailing – 2.1% | |||||||||||
120,113 | CVS Caremark Corporation | 3,868,840 | |||||||||
38,696 | SUPERVALU INC. | 491,826 | |||||||||
118,097 | Wal-Mart Stores, Inc. | 6,312,285 | |||||||||
Total Food & Staples Retailing | 10,672,951 | ||||||||||
Food Products – 0.9% | |||||||||||
149,138 | Kraft Foods Inc., Class A | 4,053,571 | |||||||||
57,000 | Sara Lee Corporation | 694,260 | |||||||||
Total Food Products | 4,747,831 |
Nuveen Investments
15
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JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value |
Gas Utilities – 0.9% | |||||||||||
14,837 | AGL Resources Inc. | $ | 541,105 | ||||||||
28,666 | Atmos Energy Corporation | 842,780 | |||||||||
22,995 | National Fuel Gas Company | 1,149,750 | |||||||||
25,417 | Nicor Inc. | 1,070,056 | |||||||||
24,793 | ONEOK, Inc. | 1,105,024 | |||||||||
Total Gas Utilities | 4,708,715 | ||||||||||
Health Care Equipment & Supplies – 1.0% | |||||||||||
12,338 | Hologic Inc., (2) | 178,901 | |||||||||
3,518 | Intuitive Surgical, Inc., (2) | 1,067,080 | |||||||||
81,113 | Medtronic, Inc. | 3,567,350 | |||||||||
Total Health Care Equipment & Supplies | 4,813,331 | ||||||||||
Health Care Providers & Services – 2.1% | |||||||||||
6,901 | Brookdale Senior Living Inc., (2) | 125,529 | |||||||||
15,450 | Coventry Health Care, Inc., (2) | 375,281 | |||||||||
20,000 | Express Scripts, Inc., (2) | 1,729,000 | |||||||||
4,681 | Henry Schein Inc., (2) | 246,221 | |||||||||
47,893 | Kindred Healthcare Inc., (2) | 884,105 | |||||||||
32,615 | Medco Health Solutions, Inc., (2) | 2,084,425 | |||||||||
100,410 | UnitedHealth Group Incorporated | 3,060,497 | |||||||||
31,168 | Wellpoint Inc., (2) | 1,816,783 | |||||||||
Total Health Care Providers & Services | 10,321,841 | ||||||||||
Health Care Technology – 0.0% | |||||||||||
57 | Cerner Corporation, (2) | 4,699 | |||||||||
Hotels, Restaurants & Leisure – 1.3% | |||||||||||
17,800 | Carnival Corporation, (2) | 564,082 | |||||||||
42,761 | International Game Technology | 802,624 | |||||||||
2,272 | Interval Leisure Group Inc., (2) | 28,332 | |||||||||
82,848 | McDonald's Corporation | 5,173,029 | |||||||||
Total Hotels, Restaurants & Leisure | 6,568,067 | ||||||||||
Household Durables – 1.2% | |||||||||||
11,075 | Black & Decker Corporation | 717,992 | |||||||||
13,597 | Garmin Limited | 417,428 | |||||||||
106,577 | Newell Rubbermaid Inc. | 1,599,721 | |||||||||
28,297 | Tupperware Corporation | 1,317,791 | |||||||||
21,465 | Whirlpool Corporation | 1,731,367 | |||||||||
Total Household Durables | 5,784,299 | ||||||||||
Household Products – 2.4% | |||||||||||
24,130 | Colgate-Palmolive Company | 1,982,280 | |||||||||
14,760 | Kimberly-Clark Corporation | 940,360 | |||||||||
152,826 | Procter & Gamble Company | 9,265,840 | |||||||||
Total Household Products | 12,188,480 | ||||||||||
Industrial Conglomerates – 2.7% | |||||||||||
24,463 | 3M Co. | 2,022,356 | |||||||||
765,378 | General Electric Company | 11,580,169 | |||||||||
57 | Siemens AG, Sponsored ADR | 5,227 | |||||||||
Total Industrial Conglomerates | 13,607,752 |
Nuveen Investments
16
Shares | Description (1) | Value | |||||||||
Insurance – 2.0% | |||||||||||
58,427 | Allstate Corporation | $ | 1,755,147 | ||||||||
11,874 | Arthur J. Gallagher & Co. | 267,284 | |||||||||
46,985 | Fidelity National Financial Inc., Class A | 632,418 | |||||||||
21,200 | Hartford Financial Services Group, Inc. | 493,112 | |||||||||
76,562 | Lincoln National Corporation | 1,904,863 | |||||||||
72,500 | Marsh & McLennan Companies, Inc. | 1,600,800 | |||||||||
42,977 | Travelers Companies, Inc. | 2,142,833 | |||||||||
52,700 | Unitrin, Inc. | 1,162,035 | |||||||||
Total Insurance | 9,958,492 | ||||||||||
Internet & Catalog Retail – 0.7% | |||||||||||
19,491 | Amazon.com, Inc., (2) | 2,621,929 | |||||||||
3,103 | HSN, Inc., (2) | 62,650 | |||||||||
2,978 | Priceline.com Incorporated, (2) | 650,693 | |||||||||
Total Internet & Catalog Retail | 3,335,272 | ||||||||||
Internet Software & Services – 2.3% | |||||||||||
14,527 | Akamai Technologies, Inc., (2) | 367,969 | |||||||||
63,227 | eBay Inc., (2) | 1,488,364 | |||||||||
11,917 | Google Inc., Class A, (2) | 7,388,302 | |||||||||
44,605 | United Online, Inc. | 320,710 | |||||||||
5,616 | ValueClick, Inc., (2) | 56,834 | |||||||||
25,228 | VeriSign, Inc., (2) | 611,527 | |||||||||
78,773 | Yahoo! Inc., (2) | 1,321,811 | |||||||||
Total Internet Software & Services | 11,555,517 | ||||||||||
IT Services – 1.3% | |||||||||||
4,000 | Accenture PLC, Class A | 166,000 | |||||||||
37,471 | Automatic Data Processing, Inc. | 1,604,508 | |||||||||
21,368 | Cognizant Technology Solutions Corporation, Class A, (2) | 967,970 | |||||||||
23,364 | Fidelity National Information Services | 547,652 | |||||||||
3,197 | Lender Processing Services Inc. | 129,990 | |||||||||
6,331 | MasterCard, Inc. | 1,620,609 | |||||||||
36,134 | Paychex, Inc. | 1,107,146 | |||||||||
2,733 | Visa Inc. | 239,028 | |||||||||
Total IT Services | 6,382,903 | ||||||||||
Leisure Equipment & Products – 0.2% | |||||||||||
39,513 | Eastman Kodak Company, (2) | 166,745 | |||||||||
11,848 | Polaris Industries Inc. | 516,928 | |||||||||
Total Leisure Equipment & Products | 683,673 | ||||||||||
Machinery – 2.2% | |||||||||||
38,388 | Caterpillar Inc. | 2,187,732 | |||||||||
26,953 | Cummins Inc. | 1,236,065 | |||||||||
28,819 | Deere & Company | 1,558,820 | |||||||||
13,600 | Graco Inc. | 388,552 | |||||||||
35,099 | Ingersoll Rand PLC | 1,254,438 | |||||||||
18,030 | Parker Hannifin Corporation | 971,456 | |||||||||
11,767 | Snap-on Incorporated | 497,273 | |||||||||
25,530 | SPX Corporation | 1,396,491 | |||||||||
24,994 | Stanley Works | 1,287,441 | |||||||||
12,000 | Timken Company | 284,520 | |||||||||
Total Machinery | 11,062,788 |
Nuveen Investments
17
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Media – 2.2% | |||||||||||
60,282 | CBS Corporation, Class B | $ | 846,962 | ||||||||
139,536 | Comcast Corporation, Class A | 2,352,577 | |||||||||
39,613 | New York Times, Class A, (2) | 489,617 | |||||||||
35,396 | Omnicom Group, Inc. | 1,385,753 | |||||||||
114,479 | Regal Entertainment Group, Class A | 1,653,077 | |||||||||
138,485 | Walt Disney Company | 4,466,141 | |||||||||
Total Media | 11,194,127 | ||||||||||
Metals & Mining – 0.7% | |||||||||||
73,484 | Alcoa Inc. | 1,184,562 | |||||||||
27,262 | Nucor Corporation | 1,271,772 | |||||||||
35,874 | Southern Copper Corporation | 1,180,613 | |||||||||
Total Metals & Mining | 3,636,947 | ||||||||||
Multiline Retail – 1.1% | |||||||||||
7 | Dollar Tree Stores Inc., (2) | 338 | |||||||||
4,000 | Family Dollar Stores, Inc. | 111,320 | |||||||||
41,402 | Macy's Inc. | 693,898 | |||||||||
53,725 | Nordstrom, Inc. | 2,018,986 | |||||||||
8,076 | Sears Holding Corporation, (2) | 673,942 | |||||||||
41,376 | Target Corporation | 2,001,357 | |||||||||
Total Multiline Retail | 5,499,841 | ||||||||||
Multi-Utilities – 1.9% | |||||||||||
40,360 | Ameren Corporation | 1,128,062 | |||||||||
35,279 | Consolidated Edison, Inc. | 1,602,725 | |||||||||
71,595 | Integrys Energy Group, Inc. | 3,006,274 | |||||||||
15,861 | Northwestern Corporation | 412,703 | |||||||||
32,717 | OGE Energy Corp. | 1,206,930 | |||||||||
66,981 | Public Service Enterprise Group Incorporated | 2,227,118 | |||||||||
Total Multi-Utilities | 9,583,812 | ||||||||||
Oil, Gas & Consumable Fuels – 9.5% | |||||||||||
12,670 | BP PLC, Sponsored ADR | 734,480 | |||||||||
9,051 | Cenovus Energy Inc. | 228,085 | |||||||||
122,951 | Chevron Corporation | 9,465,997 | |||||||||
99,438 | ConocoPhillips | 5,078,299 | |||||||||
46,182 | CONSOL Energy Inc. | 2,299,864 | |||||||||
27,271 | Continental Resources Inc., (2) | 1,169,653 | |||||||||
9,051 | EnCana Corporation | 293,162 | |||||||||
40,461 | EOG Resources, Inc. | 3,936,855 | |||||||||
255,872 | Exxon Mobil Corporation | 17,447,912 | |||||||||
53,857 | Occidental Petroleum Corporation | 4,381,267 | |||||||||
7,724 | Suncor Energy, Inc. | 272,734 | |||||||||
11,645 | Total SA, Sponsored ADR | 745,746 | |||||||||
92,575 | Valero Energy Corporation | 1,550,631 | |||||||||
Total Oil, Gas & Consumable Fuels | 47,604,685 | ||||||||||
Paper & Forest Products – 0.3% | |||||||||||
34,387 | Weyerhaeuser Company | 1,483,455 | |||||||||
Pharmaceuticals – 8.1% | |||||||||||
104,481 | Abbott Laboratories | 5,640,929 | |||||||||
153,129 | Bristol-Myers Squibb Company | 3,866,507 | |||||||||
62,495 | Eli Lilly and Company | 2,231,696 | |||||||||
7,833 | GlaxoSmithKline PLC, Sponsored ADR | 330,944 | |||||||||
159,657 | Johnson & Johnson | 10,283,507 |
Nuveen Investments
18
Shares | Description (1) | Value | |||||||||
Pharmaceuticals (continued) | |||||||||||
222,394 | Merck & Company Inc. | $ | 8,126,277 | ||||||||
2,492 | Novartis AG, Sponsored ADR | 135,640 | |||||||||
505,369 | Pfizer Inc. | 9,192,662 | |||||||||
18,021 | Sanofi-Aventis, Sponsored ADR | 707,685 | |||||||||
Total Pharmaceuticals | 40,515,847 | ||||||||||
Professional Services – 0.2% | |||||||||||
3,665 | Manpower Inc. | 200,036 | |||||||||
20,209 | Resources Connection, Inc., (2) | 428,835 | |||||||||
Total Professional Services | 628,871 | ||||||||||
Real Estate Investment Trust – 1.9% | |||||||||||
46,493 | Brandywine Realty Trust | 530,020 | |||||||||
54,183 | CapLease Inc. | 237,322 | |||||||||
32,157 | Health Care REIT, Inc. | 1,425,198 | |||||||||
49,625 | Healthcare Realty Trust, Inc. | 1,064,953 | |||||||||
45,684 | Hospitality Properties Trust | 1,083,168 | |||||||||
116,913 | HRPT Properties Trust | 756,427 | |||||||||
88,469 | Lexington Corporate Properties Trust | 537,892 | |||||||||
30,821 | Liberty Property Trust | 986,580 | |||||||||
17,263 | Medical Properties Trust Inc. | 172,630 | |||||||||
42,355 | Nationwide Health Properties, Inc. | 1,490,049 | |||||||||
30,300 | Senior Housing Properties Trust | 662,661 | |||||||||
11,215 | Sun Communities Inc. | 221,496 | |||||||||
61,650 | U-Store-It Trust | 451,278 | |||||||||
Total Real Estate Investment Trust | 9,619,674 | ||||||||||
Road & Rail – 0.9% | |||||||||||
18,000 | Burlington Northern Santa Fe Corporation | 1,775,160 | |||||||||
18,105 | Norfolk Southern Corporation | 949,064 | |||||||||
28,097 | Union Pacific Corporation | 1,795,398 | |||||||||
Total Road & Rail | 4,519,622 | ||||||||||
Semiconductors & Equipment – 2.5% | |||||||||||
27,457 | Analog Devices, Inc. | 867,092 | |||||||||
103,121 | Applied Materials, Inc. | 1,437,507 | |||||||||
21,444 | Broadcom Corporation, Class A, (2) | 674,414 | |||||||||
279,836 | Intel Corporation | 5,708,654 | |||||||||
12,846 | Intersil Holding Corporation, Class A | 197,058 | |||||||||
6,596 | Lam Research Corporation, (2) | 258,629 | |||||||||
24,226 | Microchip Technology Incorporated | 704,008 | |||||||||
24,800 | National Semiconductor Corporation | 380,928 | |||||||||
33,221 | NVIDIA Corporation, (2) | 620,568 | |||||||||
67,000 | Texas Instruments Incorporated | 1,746,020 | |||||||||
Total Semiconductors & Equipment | 12,594,878 | ||||||||||
Software – 4.3% | |||||||||||
34,641 | Adobe Systems Incorporated, (2) | 1,274,096 | |||||||||
18,119 | Autodesk, Inc., (2) | 460,404 | |||||||||
3,113 | McAfee Inc., (2) | 126,294 | |||||||||
432,556 | Microsoft Corporation | 13,188,632 | |||||||||
232,161 | Oracle Corporation | 5,697,231 | |||||||||
12,400 | Salesforce.com, Inc., (2) | 914,748 | |||||||||
3,000 | Sybase, Inc., (2) | 130,200 | |||||||||
Total Software | 21,791,605 |
Nuveen Investments
19
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Specialty Retail – 2.1% | |||||||||||
26,963 | Abercrombie & Fitch Co., Class A | $ | 939,661 | ||||||||
46,762 | American Eagle Outfitters, Inc. | 794,019 | |||||||||
34,498 | Best Buy Co., Inc. | 1,361,291 | |||||||||
108,836 | Home Depot, Inc. | 3,148,625 | |||||||||
51,450 | Limited Brands, Inc. | 989,898 | |||||||||
85,724 | Lowe's Companies, Inc. | 2,005,084 | |||||||||
236 | Ross Stores, Inc. | 10,080 | |||||||||
10,866 | Tiffany & Co. | 467,238 | |||||||||
25,162 | TJX Companies, Inc. | 919,671 | |||||||||
Total Specialty Retail | 10,635,567 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.4% | |||||||||||
7,159 | Cherokee Inc. | 127,573 | |||||||||
24,144 | VF Corporation | 1,768,307 | |||||||||
Total Textiles, Apparel & Luxury Goods | 1,895,880 | ||||||||||
Thrifts & Mortgage Finance – 0.2% | |||||||||||
60,610 | New York Community Bancorp, Inc. | 879,451 | |||||||||
38,788 | TrustCo Bank Corporation NY | 244,364 | |||||||||
Total Thrifts & Mortgage Finance | 1,123,815 | ||||||||||
Tobacco – 1.9% | |||||||||||
172,535 | Altria Group, Inc. | 3,386,862 | |||||||||
111,542 | Philip Morris International | 5,375,209 | |||||||||
10,734 | Reynolds American Inc. | 568,580 | |||||||||
1 | Vector Group Ltd. | 14 | |||||||||
Total Tobacco | 9,330,665 | ||||||||||
Wireless Telecommunication Services – 0.0% | |||||||||||
5,500 | USA Mobility Inc., (2) | 60,555 | |||||||||
Total Common Stocks (cost $467,271,580) | 494,796,039 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 4.3% | |||||||||||||||||||
$ | 21,779 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/2009, repurchase price $21,778,714, collateralized by $22,300,000 U.S. Treasury Notes, 1.000%, due 12/31/11, value $22,216,375 | 0.000 | % | 1/04/10 | $ | 21,778,714 | ||||||||||||
Total Short-Term Investments (cost $21,778,714) | 21,778,714 | ||||||||||||||||||
Total Investments (cost $489,050,294) - 102.8% | 516,574,753 |
Nuveen Investments
20
Number of Contracts | Type | Notional Amount (3) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (3.0)% (4) | |||||||||||||||||||||||
(536 | ) | S&P 500 Index | $ | (57,620,000 | ) | 1/16/10 | $ | 1,075 | $ | (2,393,240 | ) | ||||||||||||
(1,091 | ) | S&P 500 Index | (120,010,000 | ) | 1/16/10 | 1,100 | (2,689,315 | ) | |||||||||||||||
(596 | ) | S&P 500 Index | (67,050,000 | ) | 1/16/10 | 1,125 | (601,960 | ) | |||||||||||||||
(565 | ) | S&P 500 Index | (60,737,500 | ) | 2/20/10 | 1,075 | (3,166,825 | ) | |||||||||||||||
(493 | ) | S&P 500 Index | (54,230,000 | ) | 2/20/10 | 1,100 | (1,915,305 | ) | |||||||||||||||
(599 | ) | S&P 500 Index | (67,387,500 | ) | 2/20/10 | 1,125 | (1,470,545 | ) | |||||||||||||||
(537 | ) | S&P 500 Index | (59,070,000 | ) | 3/20/10 | 1,100 | (2,628,615 | ) | |||||||||||||||
(4,417 | ) | Total Call Options Written (premiums received $17,520,638) | (486,105,000 | ) | (14,865,805 | ) | |||||||||||||||||
Other Assets Less Liabilities - 0.2% | 779,155 | ||||||||||||||||||||||
Net Assets – 100% | $ | 502,488,103 |
(1) All percentages in the Portfolio of Investments are based on net assets.
(2) Non-income producing; issuer has not declared a dividend within the past twelve months.
(3) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(4) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written.
ADR American Depositary Receipt.
See accompanying notes to financial statements.
Nuveen Investments
21
JSN
Nuveen Equity Premium Opportunity Fund
Portfolio of INVESTMENTS
December 31, 2009
Shares | Description (1) | Value | |||||||||
Common Stocks – 100.0% | |||||||||||
Aerospace & Defense – 2.1% | |||||||||||
70,878 | Boeing Company | $ | 3,836,626 | ||||||||
94,676 | Honeywell International Inc. | 3,711,299 | |||||||||
25,011 | Lockheed Martin Corporation | 1,884,579 | |||||||||
42,538 | Northrop Grumman Corporation | 2,375,747 | |||||||||
40,920 | Raytheon Company | 2,108,198 | |||||||||
66,996 | United Technologies Corporation | 4,650,192 | |||||||||
Total Aerospace & Defense | 18,566,641 | ||||||||||
Air Freight & Logistics – 0.7% | |||||||||||
114,489 | United Parcel Service, Inc., Class B | 6,568,234 | |||||||||
Airlines – 0.2% | |||||||||||
198,259 | AMR Corporation, (2) | 1,532,542 | |||||||||
Auto Components – 0.3% | |||||||||||
127,177 | Gentex Corporation | 2,270,109 | |||||||||
Automobiles – 0.1% | |||||||||||
33,442 | Harley-Davidson, Inc. | 842,738 | |||||||||
Beverages – 1.9% | |||||||||||
169,649 | Coca-Cola Company | 9,669,993 | |||||||||
108,519 | PepsiCo, Inc. | 6,597,955 | |||||||||
Total Beverages | 16,267,948 | ||||||||||
Biotechnology – 3.3% | |||||||||||
156,912 | Amgen Inc., (2) | 8,876,512 | |||||||||
88,602 | Biogen Idec Inc., (2) | 4,740,207 | |||||||||
115,525 | Celgene Corporation, (2) | 6,432,432 | |||||||||
207,199 | Gilead Sciences, Inc., (2) | 8,967,573 | |||||||||
Total Biotechnology | 29,016,724 | ||||||||||
Capital Markets – 2.3% | |||||||||||
160,445 | Charles Schwab Corporation | 3,019,575 | |||||||||
48,725 | Eaton Vance Corporation | 1,481,727 | |||||||||
42,925 | Goldman Sachs Group, Inc. | 7,247,457 | |||||||||
41,872 | Legg Mason, Inc. | 1,262,860 | |||||||||
147,710 | Morgan Stanley | 4,372,216 | |||||||||
21,416 | UBS AG, (2) | 332,162 | |||||||||
93,004 | Waddell & Reed Financial, Inc., Class A | 2,840,342 | |||||||||
Total Capital Markets | 20,556,339 | ||||||||||
Chemicals – 1.8% | |||||||||||
65,505 | Dow Chemical Company | 1,809,903 | |||||||||
62,480 | E.I. Du Pont de Nemours and Company | 2,103,702 | |||||||||
38,681 | Eastman Chemical Company | 2,330,143 | |||||||||
22,596 | Lubrizol Corporation | 1,648,378 |
Nuveen Investments
22
Shares | Description (1) | Value | |||||||||
Chemicals – (continued) | |||||||||||
53,297 | Monsanto Company | $ | 4,357,030 | ||||||||
3,435 | Potash Corporation of Saskatchewan | 372,698 | |||||||||
147,794 | RPM International, Inc. | 3,004,652 | |||||||||
Total Chemicals | 15,626,506 | ||||||||||
Commercial Banks – 2.1% | |||||||||||
65,480 | Fifth Third Bancorp. | 638,430 | |||||||||
81,436 | First Horizon National Corporation, (2) | 1,091,245 | |||||||||
10,835 | HSBC Holdings PLC, Sponsored ADR | 618,570 | |||||||||
4,932 | Huntington BancShares Inc. | 18,002 | |||||||||
6 | Lloyds Banking Group PLC, Sponsored ADR | 20 | |||||||||
43,429 | Toronto-Dominion Bank | 2,723,867 | |||||||||
257,513 | U.S. Bancorp | 5,796,618 | |||||||||
284,376 | Wells Fargo & Company | 7,675,308 | |||||||||
Total Commercial Banks | 18,562,060 | ||||||||||
Commercial Services & Supplies – 0.6% | |||||||||||
82,318 | Deluxe Corporation | 1,217,483 | |||||||||
50,737 | R.R. Donnelley & Sons Company | 1,129,913 | |||||||||
94,954 | Waste Management, Inc. | 3,210,395 | |||||||||
Total Commercial Services & Supplies | 5,557,791 | ||||||||||
Communications Equipment – 5.2% | |||||||||||
62,645 | ADTRAN, Inc. | 1,412,645 | |||||||||
706,126 | Cisco Systems, Inc., (2) | 16,904,656 | |||||||||
47,138 | Harris Corporation | 2,241,412 | |||||||||
13,861 | Harris Stratex Networks, Inc., (2) | 95,780 | |||||||||
76,265 | Motorola, Inc., (2) | 591,816 | |||||||||
379,861 | QUALCOMM, Inc. | 17,572,370 | |||||||||
97,622 | Research In Motion Limited, (2) | 6,593,390 | |||||||||
Total Communications Equipment | 45,412,069 | ||||||||||
Computers & Peripherals – 9.1% | |||||||||||
237,609 | Apple, Inc., (2) | 50,102,234 | |||||||||
248,015 | Dell Inc., (2) | 3,561,495 | |||||||||
194,966 | EMC Corporation, (2) | 3,406,056 | |||||||||
186,693 | Hewlett-Packard Company | 9,616,556 | |||||||||
86,502 | International Business Machines Corporation (IBM) | 11,323,112 | |||||||||
56,024 | Network Appliance Inc., (2) | 1,926,665 | |||||||||
Total Computers & Peripherals | 79,936,118 | ||||||||||
Consumer Finance – 0.5% | |||||||||||
71,246 | American Express Company | 2,886,888 | |||||||||
72,637 | Discover Financial Services | 1,068,490 | |||||||||
77,393 | SLM Corporation, (2) | 872,219 | |||||||||
Total Consumer Finance | 4,827,597 | ||||||||||
Containers & Packaging – 0.5% | |||||||||||
135,141 | Packaging Corp. of America | 3,109,594 | |||||||||
51,379 | Sonoco Products Company | 1,502,836 | |||||||||
Total Containers & Packaging | 4,612,430 | ||||||||||
Distributors – 0.2% | |||||||||||
56,314 | Genuine Parts Company | 2,137,679 |
Nuveen Investments
23
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
35,953 | Hillenbrand Inc. | $ | 677,355 | ||||||||
Diversified Financial Services – 3.0% | |||||||||||
507,992 | Bank of America Corporation | 7,650,360 | |||||||||
330,281 | Citigroup Inc. | 1,093,230 | |||||||||
11,202 | CME Group, Inc. | 3,763,312 | |||||||||
126,855 | ING Groep N.V, Sponsored ADR, (2) | 1,244,448 | |||||||||
304,132 | JPMorgan Chase & Co. | 12,673,180 | |||||||||
Total Diversified Financial Services | 26,424,530 | ||||||||||
Diversified Telecommunication Services – 2.6% | |||||||||||
562,823 | AT&T Inc. | 15,775,929 | |||||||||
183,495 | Verizon Communications Inc. | 6,079,189 | |||||||||
24,888 | Vimpel Communiations, Sponsored ADR, (2) | 462,668 | |||||||||
Total Diversified Telecommunication Services | 22,317,786 | ||||||||||
Electric Utilities – 1.2% | |||||||||||
116,760 | Companhia Energetica de Minas Gerais, Sponsored ADR | 2,108,686 | |||||||||
188,071 | Duke Energy Corporation | 3,236,702 | |||||||||
112,676 | Great Plains Energy Incorporated | 2,184,788 | |||||||||
129,707 | Pepco Holdings, Inc. | 2,185,563 | |||||||||
30,156 | Pinnacle West Capital Corporation | 1,103,106 | |||||||||
Total Electric Utilities | 10,818,845 | ||||||||||
Electrical Equipment – 1.5% | |||||||||||
48,340 | Cooper Industries PLC | 2,061,218 | |||||||||
124,855 | Emerson Electric Company | 5,318,823 | |||||||||
9,506 | First Solar Inc., (2) | 1,287,112 | |||||||||
11,850 | Hubbell Incorporated, Class B | 560,505 | |||||||||
34,902 | Rockwell Automation, Inc. | 1,639,696 | |||||||||
50,042 | Roper Industries Inc. | 2,620,700 | |||||||||
Total Electrical Equipment | 13,488,054 | ||||||||||
Electronic Equipment & Instruments – 0.4% | |||||||||||
171,994 | Corning Incorporated | 3,321,204 | |||||||||
Energy Equipment & Services – 1.9% | |||||||||||
29,803 | Diamond Offshore Drilling, Inc. | 2,933,211 | |||||||||
37,054 | ENSCO International PLC, Sponsored ADR | 1,479,937 | |||||||||
172,289 | Halliburton Company | 5,184,176 | |||||||||
54,938 | Patterson-UTI Energy, Inc. | 843,298 | |||||||||
84,735 | Schlumberger Limited | 5,515,401 | |||||||||
17,510 | Tidewater Inc. | 839,605 | |||||||||
Total Energy Equipment & Services | 16,795,628 | ||||||||||
Food & Staples Retailing – 2.3% | |||||||||||
141,214 | CVS Caremark Corporation | 4,548,503 | |||||||||
95,788 | Kroger Co. | 1,966,528 | |||||||||
38,974 | SUPERVALU INC. | 495,360 | |||||||||
82,820 | Walgreen Co. | 3,041,150 | |||||||||
183,764 | Wal-Mart Stores, Inc. | 9,822,186 | |||||||||
Total Food & Staples Retailing | 19,873,727 | ||||||||||
Food Products – 0.6% | |||||||||||
157,444 | Kraft Foods Inc. | 4,279,328 | |||||||||
110,972 | Sara Lee Corporation | 1,351,639 | |||||||||
Total Food Products | 5,630,967 |
Nuveen Investments
24
Shares | Description (1) | Value | |||||||||
Gas Utilities – 1.4% | |||||||||||
23,164 | AGL Resources Inc. | $ | 844,791 | ||||||||
100,700 | Atmos Energy Corporation | 2,960,580 | |||||||||
78,051 | National Fuel Gas Company | 3,902,550 | |||||||||
62,725 | Nicor Inc. | 2,640,723 | |||||||||
50,438 | ONEOK, Inc. | 2,248,022 | |||||||||
Total Gas Utilities | 12,596,666 | ||||||||||
Health Care Equipment & Supplies – 1.9% | |||||||||||
78,972 | Baxter International, Inc. | 4,634,077 | |||||||||
36,821 | Hill Rom Holdings Inc. | 883,336 | |||||||||
151,838 | Hologic Inc., (2) | 2,201,651 | |||||||||
12,205 | Intuitive Surgical, Inc., (2) | 3,702,021 | |||||||||
115,199 | Medtronic, Inc. | 5,066,452 | |||||||||
Total Health Care Equipment & Supplies | 16,487,537 | ||||||||||
Health Care Providers & Services – 2.0% | |||||||||||
54,967 | Aetna Inc. | 1,742,454 | |||||||||
92,193 | Brookdale Senior Living Inc., (2) | 1,676,991 | |||||||||
26,104 | Coventry Health Care, Inc., (2) | 634,066 | |||||||||
73,466 | Express Scripts, Inc., (2) | 6,351,136 | |||||||||
113,816 | UnitedHealth Group Incorporated | 3,469,112 | |||||||||
59,815 | Wellpoint Inc., (2) | 3,486,616 | |||||||||
Total Health Care Providers & Services | 17,360,375 | ||||||||||
Hotels, Restaurants & Leisure – 1.2% | |||||||||||
52,405 | International Game Technology | 983,642 | |||||||||
5,770 | Interval Leisure Group Inc., (2) | 71,952 | |||||||||
115,284 | McDonald's Corporation | 7,198,333 | |||||||||
29,149 | Starwood Hotels & Resorts Worldwide, Inc. | 1,065,979 | |||||||||
27,090 | Wynn Resorts Ltd, (2) | 1,577,451 | |||||||||
Total Hotels, Restaurants & Leisure | 10,897,357 | ||||||||||
Household Durables – 0.7% | |||||||||||
97,917 | KB Home | 1,339,505 | |||||||||
159,689 | Newell Rubbermaid Inc. | 2,396,932 | |||||||||
30,951 | Whirlpool Corporation | 2,496,508 | |||||||||
Total Household Durables | 6,232,945 | ||||||||||
Household Products – 1.9% | |||||||||||
43,900 | Colgate-Palmolive Company | 3,606,385 | |||||||||
217,653 | Procter & Gamble Company | 13,196,301 | |||||||||
Total Household Products | 16,802,686 | ||||||||||
Industrial Conglomerates – 1.6% | |||||||||||
16,948 | 3M Co. | 1,401,091 | |||||||||
850,242 | General Electric Company | 12,864,161 | |||||||||
Total Industrial Conglomerates | 14,265,252 | ||||||||||
Insurance – 0.8% | |||||||||||
51,073 | Allstate Corporation | 1,534,233 | |||||||||
1,141 | American International Group, (2) | 34,207 | |||||||||
26,066 | Arthur J. Gallagher & Co. | 586,746 | |||||||||
189,397 | Fidelity National Financial Inc., Class A | 2,549,284 | |||||||||
104,546 | Marsh & McLennan Companies, Inc. | 2,308,376 | |||||||||
719 | Mercury General Corporation | 28,228 | |||||||||
13,952 | Unitrin, Inc. | 307,642 | |||||||||
Total Insurance | 7,348,716 |
Nuveen Investments
25
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Internet & Catalog Retail – 1.1% | |||||||||||
68,270 | Amazon.com, Inc., (2) | $ | 9,183,680 | ||||||||
13,070 | HSN, Inc., (2) | 263,883 | |||||||||
Total Internet & Catalog Retail | 9,447,563 | ||||||||||
Internet Software & Services – 4.4% | |||||||||||
39,986 | Akamai Technologies, Inc., (2) | 1,012,845 | |||||||||
4,183 | Baidu.com, Inc., Sponsored ADR, (2) | 1,720,175 | |||||||||
84,843 | Earthlink, Inc. | 705,045 | |||||||||
225,183 | eBay Inc., (2) | 5,300,808 | |||||||||
36,735 | Google Inc., Class A, (2) | 22,774,965 | |||||||||
32,976 | IAC/InterActiveCorp., (2) | 675,348 | |||||||||
82,243 | United Online, Inc. | 591,327 | |||||||||
87,135 | VeriSign, Inc., (2) | 2,112,152 | |||||||||
213,551 | Yahoo! Inc., (2) | 3,583,386 | |||||||||
Total Internet Software & Services | 38,476,051 | ||||||||||
IT Services – 1.1% | |||||||||||
115,399 | Automatic Data Processing, Inc. | 4,941,385 | |||||||||
46,298 | Fidelity National Information Services | 1,085,225 | |||||||||
14,762 | Lender Processing Services Inc. | 600,223 | |||||||||
103,282 | Paychex, Inc. | 3,164,560 | |||||||||
Total IT Services | 9,791,393 | ||||||||||
Leisure Equipment & Products – 0.3% | |||||||||||
77,989 | Mattel, Inc. | 1,558,220 | |||||||||
14,833 | Polaris Industries Inc. | 647,164 | |||||||||
Total Leisure Equipment & Products | 2,205,384 | ||||||||||
Machinery – 1.9% | |||||||||||
79,090 | Caterpillar Inc. | 4,507,339 | |||||||||
25,779 | Deere & Company | 1,394,386 | |||||||||
53,108 | Graco Inc. | 1,517,296 | |||||||||
27,670 | Joy Global Inc. | 1,427,495 | |||||||||
72,194 | SPX Corporation | 3,949,012 | |||||||||
41,264 | Stanley Works | 2,125,509 | |||||||||
67,275 | Timken Company | 1,595,090 | |||||||||
Total Machinery | 16,516,127 | ||||||||||
Marine – 0.0% | |||||||||||
31,233 | Eagle Bulk Shipping Inc., (2) | 154,603 | |||||||||
Media – 3.0% | |||||||||||
412,987 | Comcast Corporation, Special Class A | 6,611,922 | |||||||||
101,917 | New York Times, Class A, (2) | 1,259,694 | |||||||||
309,975 | News Corporation, Class A | 4,243,558 | |||||||||
63,343 | Omnicom Group, Inc. | 2,479,878 | |||||||||
134,901 | Regal Entertainment Group, Class A | 1,947,970 | |||||||||
535,542 | Sirius XM Radio Inc., (2) | 321,325 | |||||||||
66,010 | Viacom Inc., Class B, (2) | 1,962,477 | |||||||||
203,844 | Walt Disney Company | 6,573,969 | |||||||||
159,513 | Warner Music Group Corporation, (2) | 902,844 | |||||||||
Total Media | 26,303,637 | ||||||||||
Metals & Mining – 0.6% | |||||||||||
85,534 | Alcoa Inc. | 1,378,808 | |||||||||
117,464 | Southern Copper Corporation | 3,865,740 | |||||||||
Total Metals & Mining | 5,244,548 |
Nuveen Investments
26
Shares | Description (1) | Value | |||||||||
Multiline Retail – 1.3% | |||||||||||
58,848 | Macy's Inc. | $ | 986,292 | ||||||||
61,629 | Nordstrom, Inc. | 2,316,018 | |||||||||
47,473 | Sears Holding Corporation, (2) | 3,961,622 | |||||||||
85,972 | Target Corporation | 4,158,466 | |||||||||
Total Multiline Retail | 11,422,398 | ||||||||||
Multi-Utilities – 0.8% | |||||||||||
62,041 | Ameren Corporation | 1,734,046 | |||||||||
57,468 | OGE Energy Corp. | 2,119,995 | |||||||||
96,709 | Public Service Enterprise Group Incorporated | 3,215,574 | |||||||||
Total Multi-Utilities | 7,069,615 | ||||||||||
Oil, Gas & Consumable Fuels – 6.7% | |||||||||||
174,419 | Chevron Corporation | 13,428,519 | |||||||||
2,747 | CNOOC Limited, Sponsored ADR | 427,021 | |||||||||
115,719 | ConocoPhillips | 5,909,769 | |||||||||
962 | Delta Petroleum Corporation, (2) | 1,000 | |||||||||
369,885 | Exxon Mobil Corporation | 25,222,458 | |||||||||
20,868 | Hess Corporation | 1,262,514 | |||||||||
53,377 | Occidental Petroleum Corporation | 4,342,219 | |||||||||
5,467 | PetroChina Company Limited, Sponsored ADR | 650,354 | |||||||||
15,980 | Royal Dutch Shell PLC, Class A, Sponsored ADR | 960,558 | |||||||||
99,339 | SandRidge Energy Inc., (2) | 936,767 | |||||||||
39,133 | StatoilHydro ASA, Sponsored ADR | 974,803 | |||||||||
16,037 | Suncor Energy, Inc. | 566,266 | |||||||||
96,561 | XTO Energy, Inc. | 4,492,983 | |||||||||
Total Oil, Gas & Consumable Fuels | 59,175,231 | ||||||||||
Pharmaceuticals – 6.0% | |||||||||||
143,154 | Abbott Laboratories | 7,728,884 | |||||||||
144,095 | Bristol-Myers Squibb Company | 3,638,399 | |||||||||
93,944 | Eli Lilly and Company | 3,354,740 | |||||||||
12,316 | GlaxoSmithKline PLC, Sponsored ADR | 520,351 | |||||||||
187,077 | Johnson & Johnson | 12,049,630 | |||||||||
331,786 | Merck & Company Inc. | 12,123,460 | |||||||||
708,333 | Pfizer Inc. | 12,884,577 | |||||||||
Total Pharmaceuticals | 52,300,041 | ||||||||||
Professional Services – 0.6% | |||||||||||
22,298 | Corporate Executive Board Company | 508,840 | |||||||||
56,869 | Manpower Inc. | 3,103,910 | |||||||||
75,337 | Resources Connection, Inc., (2) | 1,598,651 | |||||||||
Total Professional Services | 5,211,401 | ||||||||||
Real Estate Investment Trust – 1.4% | |||||||||||
66,093 | Apartment Investment & Management Company, Class A | 1,052,201 | |||||||||
69,975 | Brandywine Realty Trust | 797,715 | |||||||||
34,687 | CBL & Associates Properties Inc. | 335,423 | |||||||||
114,294 | DCT Industrial Trust Inc. | 573,756 | |||||||||
2,779 | Developers Diversified Realty Corporation | 25,734 | |||||||||
50,512 | Health Care REIT, Inc. | 2,238,692 | |||||||||
100,726 | Lexington Corporate Properties Trust | 612,414 | |||||||||
47,270 | Liberty Property Trust | 1,513,113 | |||||||||
106,216 | Nationwide Health Properties, Inc. | 3,736,679 | |||||||||
136,993 | U-Store-It Trust | 1,002,789 | |||||||||
Total Real Estate Investment Trust | 11,888,516 |
Nuveen Investments
27
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Road & Rail – 0.4% | |||||||||||
48,833 | Union Pacific Corporation | $ | 3,120,429 | ||||||||
Semiconductors & Equipment – 3.8% | |||||||||||
94,823 | Altera Corporation | 2,145,844 | |||||||||
75,732 | Analog Devices, Inc. | 2,391,617 | |||||||||
249,727 | Applied Materials, Inc. | 3,481,194 | |||||||||
115,352 | Broadcom Corporation, Class A, (2) | 3,627,820 | |||||||||
598,003 | Intel Corporation | 12,199,261 | |||||||||
27,560 | Intersil Holding Corporation, Class A | 422,770 | |||||||||
79,053 | Linear Technology Corporation | 2,414,279 | |||||||||
114,725 | National Semiconductor Corporation | 1,762,176 | |||||||||
174,343 | Texas Instruments Incorporated | 4,543,379 | |||||||||
Total Semiconductors & Equipment | 32,988,340 | ||||||||||
Software – 7.1% | |||||||||||
332,861 | Activision Blizzard Inc., (2) | 3,698,086 | |||||||||
170,391 | Adobe Systems Incorporated, (2) | 6,266,981 | |||||||||
79,049 | Autodesk, Inc., (2) | 2,008,635 | |||||||||
56,026 | McAfee Inc., (2) | 2,272,975 | |||||||||
1,034,480 | Microsoft Corporation | 31,541,295 | |||||||||
691,143 | Oracle Corporation | 16,960,649 | |||||||||
Total Software | 62,748,621 | ||||||||||
Specialty Retail – 1.9% | |||||||||||
21,735 | Abercrombie & Fitch Co., Class A | 757,465 | |||||||||
59,432 | American Eagle Outfitters, Inc. | 1,009,155 | |||||||||
74,644 | Best Buy Co., Inc. | 2,945,452 | |||||||||
70,360 | CarMax, Inc., (2) | 1,706,230 | |||||||||
84,658 | Gap, Inc. | 1,773,585 | |||||||||
124,349 | Home Depot, Inc. | 3,597,417 | |||||||||
113,332 | Limited Brands, Inc. | 2,180,508 | |||||||||
131,571 | Lowe's Companies, Inc. | 3,077,446 | |||||||||
Total Specialty Retail | 17,047,258 | ||||||||||
Thrifts & Mortgage Finance – 0.3% | |||||||||||
181,553 | New York Community Bancorp, Inc. | 2,634,334 | |||||||||
2,011 | Tree.com Inc., (2) | 18,401 | |||||||||
Total Thrifts & Mortgage Finance | 2,652,735 | ||||||||||
Tobacco – 1.1% | |||||||||||
5,906 | Altria Group, Inc. | 115,935 | |||||||||
175,016 | Philip Morris International | 8,434,021 | |||||||||
18,755 | Reynolds American Inc. | 993,452 | |||||||||
Total Tobacco | 9,543,408 | ||||||||||
Wireless Telecommunication Services – 0.2% | |||||||||||
30,476 | China Mobile Hong Kong Limited, Sponsored ADR | 1,415,001 | |||||||||
Total Common Stocks (cost $777,966,573) | 878,355,455 |
Nuveen Investments
28
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 3.7% | |||||||||||||||||||
$ | 32,537 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/2009, repurchase price $32,537,481, collateralized by $33,315,000 U.S. Treasury Notes, 1.000%, due 12/31/11, value $33,190,069 | 0.000 | % | 1/04/10 | $ | 32,537,481 | ||||||||||||
Total Short-Term Investments (cost $32,537,481) | 32,537,481 | ||||||||||||||||||
Total Investments (cost $810,504,054) – 103.7% | 910,892,936 |
Number of Contracts | Type | Notional Amount (3) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (3.8)% (4) | |||||||||||||||||||||||
(803 | ) | Mini-NDX 100 Index | $ | (14,052,500 | ) | 1/16/10 | $ | 175.0 | $ | (981,668 | ) | ||||||||||||
(804 | ) | Mini-NDX 100 Index | (14,271,000 | ) | 1/16/10 | 177.5 | (797,970 | ) | |||||||||||||||
(612 | ) | Mini-NDX 100 Index | (11,016,000 | ) | 1/16/10 | 180.0 | (469,710 | ) | |||||||||||||||
(614 | ) | Mini-NDX 100 Index | (10,745,000 | ) | 2/20/10 | 175.0 | (845,785 | ) | |||||||||||||||
(1,365 | ) | Mini-NDX 100 Index | (24,228,750 | ) | 2/20/10 | 177.5 | (1,600,462 | ) | |||||||||||||||
(703 | ) | Mini-NDX 100 Index | (12,654,000 | ) | 2/20/10 | 180.0 | (690,698 | ) | |||||||||||||||
(800 | ) | Mini-NDX 100 Index | (14,400,000 | ) | 3/20/10 | 180.0 | (914,000 | ) | |||||||||||||||
(106 | ) | NASDAQ 100 Index | (18,550,000 | ) | 1/16/10 | 1,750.0 | (1,297,970 | ) | |||||||||||||||
(105 | ) | NASDAQ 100 Index | (18,637,500 | ) | 1/16/10 | 1,775.0 | (1,041,075 | ) | |||||||||||||||
(89 | ) | NASDAQ 100 Index | (16,020,000 | ) | 1/16/10 | 1,800.0 | (684,410 | ) | |||||||||||||||
(89 | ) | NASDAQ 100 Index | (15,575,000 | ) | 2/20/10 | 1,750.0 | (1,226,865 | ) | |||||||||||||||
(104 | ) | NASDAQ 100 Index | (18,460,000 | ) | 2/20/10 | 1,775.0 | (1,223,040 | ) | |||||||||||||||
(84 | ) | NASDAQ 100 Index | (15,120,000 | ) | 2/20/10 | 1,800.0 | (826,980 | ) | |||||||||||||||
(53 | ) | NASDAQ 100 Index | (9,540,000 | ) | 3/20/10 | 1,800.0 | (606,585 | ) | |||||||||||||||
(729 | ) | S&P 500 Index | (78,367,500 | ) | 1/16/10 | 1,075.0 | (3,254,985 | ) | |||||||||||||||
(1,415 | ) | S&P 500 Index | (155,650,000 | ) | 1/16/10 | 1,100.0 | (3,487,975 | ) | |||||||||||||||
(740 | ) | S&P 500 Index | (83,250,000 | ) | 1/16/10 | 1,125.0 | (747,400 | ) | |||||||||||||||
(762 | ) | S&P 500 Index | (81,915,000 | ) | 2/20/10 | 1,075.0 | (4,271,010 | ) | |||||||||||||||
(638 | ) | S&P 500 Index | (70,180,000 | ) | 2/20/10 | 1,100.0 | (2,478,630 | ) | |||||||||||||||
(818 | ) | S&P 500 Index | (92,025,000 | ) | 2/20/10 | 1,125.0 | (2,008,190 | ) | |||||||||||||||
(729 | ) | S&P 500 Index | (80,190,000 | ) | 3/20/10 | 1,100.0 | (3,568,455 | ) | |||||||||||||||
(12,162 | ) | Total Call Options Written (premiums received $32,461,956) | (854,847,250 | ) | (33,023,863 | ) | |||||||||||||||||
Other Assets Less Liabilities – 0.1% | 452,386 | ||||||||||||||||||||||
Net Assets – 100% | $ | 878,321,459 |
(1) All percentages in the Portfolio of Investments are based on net assets.
(2) Non-income producing; issuer has not declared a dividend within the past twelve months.
(3) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(4) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written.
ADR American Depositary Receipt.
See accompanying notes to financial statements.
Nuveen Investments
29
JLA
Nuveen Equity Premium Advantage Fund
Portfolio of INVESTMENTS
December 31, 2009
Shares | Description (1) | Value | |||||||||
Common Stocks – 101.4% | |||||||||||
Aerospace & Defense – 1.3% | |||||||||||
25,265 | Boeing Company | $ | 1,367,594 | ||||||||
33,749 | Honeywell International Inc. | 1,322,961 | |||||||||
27,245 | United Technologies Corporation | 1,891,075 | |||||||||
Total Aerospace & Defense | 4,581,630 | ||||||||||
Air Freight & Logistics – 0.7% | |||||||||||
44,697 | United Parcel Service, Inc., Class B | 2,564,267 | |||||||||
Airlines – 0.3% | |||||||||||
25,270 | Delta Air Lines, Inc., (2) | 287,573 | |||||||||
27,885 | Lan Airlines S.A., Sponsored ADR | 464,843 | |||||||||
41,213 | Southwest Airlines Co. | 471,065 | |||||||||
Total Airlines | 1,223,481 | ||||||||||
Auto Components – 0.5% | |||||||||||
9,896 | American Axle and Manufacturing Holdings Inc. | 79,366 | |||||||||
28,366 | Cooper Tire & Rubber | 568,738 | |||||||||
61,381 | Gentex Corporation | 1,095,651 | |||||||||
Total Auto Components | 1,743,755 | ||||||||||
Automobiles – 0.4% | |||||||||||
119,221 | Ford Motor Company, (2) | 1,192,210 | |||||||||
14,231 | Harley-Davidson, Inc. | 358,621 | |||||||||
Total Automobiles | 1,550,831 | ||||||||||
Beverages – 1.2% | |||||||||||
38,620 | Coca-Cola Company | 2,201,340 | |||||||||
30,352 | PepsiCo, Inc. | 1,845,402 | |||||||||
Total Beverages | 4,046,742 | ||||||||||
Biotechnology – 4.8% | |||||||||||
77,192 | Amgen Inc., (2) | 4,366,751 | |||||||||
70,399 | Celgene Corporation, (2) | 3,919,816 | |||||||||
13,300 | Cephalon, Inc., (2) | 830,053 | |||||||||
48,444 | Genzyme Corporation, (2) | 2,374,240 | |||||||||
125,299 | Gilead Sciences, Inc., (2) | 5,422,941 | |||||||||
Total Biotechnology | 16,913,801 | ||||||||||
Capital Markets – 1.4% | |||||||||||
27,074 | Bank of New York Company, Inc. | 757,260 | |||||||||
48,261 | Charles Schwab Corporation | 908,272 | |||||||||
9,607 | Goldman Sachs Group, Inc. | 1,622,046 | |||||||||
34,070 | Morgan Stanley | 1,008,472 | |||||||||
17,346 | Waddell & Reed Financial, Inc., Class A | 529,747 | |||||||||
Total Capital Markets | 4,825,797 |
Nuveen Investments
30
Shares | Description (1) | Value | |||||||||
Chemicals – 1.0% | |||||||||||
32,606 | Dow Chemical Company | $ | 900,904 | ||||||||
37,340 | E.I. Du Pont de Nemours and Company | 1,257,238 | |||||||||
16,158 | Monsanto Company | 1,320,917 | |||||||||
Total Chemicals | 3,479,059 | ||||||||||
Commercial Banks – 1.2% | |||||||||||
31,331 | FirstMerit Corporation | 631,006 | |||||||||
15,775 | Lloyds Banking Group PLC, Sponsored ADR | 51,584 | |||||||||
7,538 | Toronto-Dominion Bank | 472,783 | |||||||||
63,404 | U.S. Bancorp | 1,427,224 | |||||||||
57,557 | Wells Fargo & Company | 1,553,463 | |||||||||
Total Commercial Banks | 4,136,060 | ||||||||||
Commercial Services & Supplies – 0.5% | |||||||||||
29,414 | Covanta Holding Corporation, (2) | 532,099 | |||||||||
13,828 | Deluxe Corporation | 204,516 | |||||||||
12,039 | Pitney Bowes Inc. | 274,008 | |||||||||
27,054 | R.R. Donnelley & Sons Company | 602,493 | |||||||||
Total Commercial Services & Supplies | 1,613,116 | ||||||||||
Communications Equipment – 7.3% | |||||||||||
353,015 | Cisco Systems, Inc., (2) | 8,451,179 | |||||||||
21,578 | Comverse Technology, Inc., (2) | 203,912 | |||||||||
16,764 | Harris Corporation | 797,128 | |||||||||
6,820 | Harris Stratex Networks, Inc., (2) | 47,126 | |||||||||
246,403 | QUALCOMM, Inc. | 11,398,603 | |||||||||
70,797 | Research In Motion Limited, (2) | 4,781,629 | |||||||||
Total Communications Equipment | 25,679,577 | ||||||||||
Computers & Peripherals – 11.7% | |||||||||||
156,690 | Apple, Inc., (2) | 33,039,657 | |||||||||
48,281 | EMC Corporation, (2) | 843,469 | |||||||||
62,009 | Hewlett-Packard Company | 3,194,084 | |||||||||
26,127 | International Business Machines Corporation (IBM) | 3,420,024 | |||||||||
41,328 | Sun Microsystems Inc., (2) | 387,243 | |||||||||
Total Computers & Peripherals | 40,884,477 | ||||||||||
Consumer Finance – 0.3% | |||||||||||
19,600 | American Express Company | 794,192 | |||||||||
23,560 | SLM Corporation, (2) | 265,521 | |||||||||
Total Consumer Finance | 1,059,713 | ||||||||||
Containers & Packaging – 0.2% | |||||||||||
20,638 | Packaging Corp. of America | 474,880 | |||||||||
5,624 | Sonoco Products Company | 164,502 | |||||||||
Total Containers & Packaging | 639,382 | ||||||||||
Distributors – 0.1% | |||||||||||
6,714 | Genuine Parts Company | 254,863 | |||||||||
Diversified Consumer Services – 0.3% | |||||||||||
7,119 | ITT Educational Services, Inc., (2) | 683,139 | |||||||||
63,150 | Service Corporation International | 517,199 | |||||||||
Total Diversified Consumer Services | 1,200,338 |
Nuveen Investments
31
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Diversified Financial Services – 2.1% | |||||||||||
130,976 | Bank of America Corporation | $ | 1,972,499 | ||||||||
3,262 | CME Group, Inc. | 1,095,869 | |||||||||
88,019 | JPMorgan Chase & Co. | 3,667,752 | |||||||||
16,687 | Moody's Corporation | 447,212 | |||||||||
Total Diversified Financial Services | 7,183,332 | ||||||||||
Diversified Telecommunication Services – 1.8% | |||||||||||
139,745 | AT&T Inc. | 3,917,052 | |||||||||
28,334 | Chunghwa Telecom Co., Ltd, Sponsored ADR | 526,162 | |||||||||
64,132 | Frontier Communications Corporation | 500,871 | |||||||||
40,711 | Verizon Communications Inc. | 1,348,755 | |||||||||
Total Diversified Telecommunication Services | 6,292,840 | ||||||||||
Electric Utilities – 0.9% | |||||||||||
66,063 | Duke Energy Corporation | 1,136,944 | |||||||||
48,358 | Great Plains Energy Incorporated | 937,662 | |||||||||
27,860 | Pinnacle West Capital Corporation | 1,019,119 | |||||||||
Total Electric Utilities | 3,093,725 | ||||||||||
Electrical Equipment – 1.2% | |||||||||||
20,060 | Cooper Industries PLC | 855,358 | |||||||||
31,682 | Emerson Electric Company | 1,349,653 | |||||||||
11,238 | Hubbell Incorporated, Class B | 531,557 | |||||||||
14,562 | Rockwell Automation, Inc. | 684,123 | |||||||||
13,312 | Roper Industries Inc. | 697,149 | |||||||||
311 | SunPower Corporation, Class B, (2) | 6,515 | |||||||||
Total Electrical Equipment | 4,124,355 | ||||||||||
Electronic Equipment & Instruments – 0.8% | |||||||||||
18,994 | Agilent Technologies, Inc., (2) | 590,144 | |||||||||
25,113 | Amphenol Corporation, Class A | 1,159,718 | |||||||||
56,514 | Corning Incorporated | 1,091,285 | |||||||||
Total Electronic Equipment & Instruments | 2,841,147 | ||||||||||
Energy Equipment & Services – 1.4% | |||||||||||
29,580 | Cooper Cameron Corporation, (2) | 1,236,444 | |||||||||
11,464 | Diamond Offshore Drilling, Inc. | 1,128,287 | |||||||||
52,485 | Halliburton Company | 1,579,274 | |||||||||
33,117 | Smith International, Inc. | 899,789 | |||||||||
Total Energy Equipment & Services | 4,843,794 | ||||||||||
Food & Staples Retailing – 1.5% | |||||||||||
46,728 | CVS Caremark Corporation | 1,505,109 | |||||||||
24,085 | Kroger Co. | 494,465 | |||||||||
23,034 | SUPERVALU INC. | 292,762 | |||||||||
33,608 | Walgreen Co. | 1,234,086 | |||||||||
30,118 | Wal-Mart Stores, Inc. | 1,609,807 | |||||||||
Total Food & Staples Retailing | 5,136,229 | ||||||||||
Food Products – 0.7% | |||||||||||
19,903 | Archer-Daniels-Midland Company | 623,163 | |||||||||
42,656 | Kraft Foods Inc., Class A | 1,159,390 | |||||||||
64,568 | Sara Lee Corporation | 786,438 | |||||||||
Total Food Products | 2,568,991 |
Nuveen Investments
32
Shares | Description (1) | Value | |||||||||
Gas Utilities – 0.5% | |||||||||||
24,969 | Nicor Inc. | $ | 1,051,195 | ||||||||
26,900 | Piedmont Natural Gas Company | 719,575 | |||||||||
Total Gas Utilities | 1,770,770 | ||||||||||
Health Care Equipment & Supplies – 1.5% | |||||||||||
35,925 | Accuray, Inc., (2) | 201,539 | |||||||||
16,779 | Baxter International, Inc. | 984,592 | |||||||||
58,519 | Boston Scientific Corporation, (2) | 526,671 | |||||||||
9,327 | CareFusion Corporation, (2) | 233,268 | |||||||||
37,662 | ev3, Inc., (2) | 502,411 | |||||||||
12,334 | Hill Rom Holdings Inc. | 295,893 | |||||||||
25,529 | Medtronic, Inc. | 1,122,765 | |||||||||
17,705 | Saint Jude Medical Inc., (2) | 651,190 | |||||||||
12,127 | Zimmer Holdings, Inc., (2) | 716,827 | |||||||||
Total Health Care Equipment & Supplies | 5,235,156 | ||||||||||
Health Care Providers & Services – 1.9% | |||||||||||
13,759 | Brookdale Senior Living Inc., (2) | 250,276 | |||||||||
18,655 | Cardinal Health, Inc. | 601,437 | |||||||||
23,961 | Lincare Holdings, (2) | 889,432 | |||||||||
22,698 | Medco Health Solutions, Inc., (2) | 1,450,629 | |||||||||
10,900 | Omnicare, Inc. | 263,562 | |||||||||
82,800 | Tenet Healthcare Corporation, (2) | 446,292 | |||||||||
27,849 | UnitedHealth Group Incorporated | 848,838 | |||||||||
20,106 | Universal Health Services, Inc., Class B | 613,233 | |||||||||
19,990 | Wellpoint Inc., (2) | 1,165,217 | |||||||||
Total Health Care Providers & Services | 6,528,916 | ||||||||||
Hotels, Restaurants & Leisure – 2.3% | |||||||||||
17,976 | Carnival Corporation, (2) | 569,659 | |||||||||
27,099 | International Game Technology | 508,648 | |||||||||
10,272 | Interval Leisure Group Inc., (2) | 128,092 | |||||||||
15,241 | McDonald's Corporation | 951,648 | |||||||||
151,583 | Starbucks Corporation, (2) | 3,495,504 | |||||||||
34,342 | Starwood Hotels & Resorts Worldwide, Inc. | 1,255,887 | |||||||||
19,573 | Tim Hortons Inc. | 597,172 | |||||||||
84,855 | Wendy's International, Inc. | 397,970 | |||||||||
Total Hotels, Restaurants & Leisure | 7,904,580 | ||||||||||
Household Durables – 0.3% | |||||||||||
15,279 | KB Home | 209,017 | |||||||||
36,936 | Newell Rubbermaid Inc. | 554,409 | |||||||||
4,844 | Whirlpool Corporation | 390,717 | |||||||||
Total Household Durables | 1,154,143 | ||||||||||
Household Products – 1.0% | |||||||||||
55,904 | Procter & Gamble Company | 3,389,460 | |||||||||
Industrial Conglomerates – 1.1% | |||||||||||
11,920 | 3M Co. | 985,426 | |||||||||
191,451 | General Electric Company | 2,896,654 | |||||||||
Total Industrial Conglomerates | 3,882,080 | ||||||||||
Insurance – 1.0% | |||||||||||
16,791 | AFLAC Incorporated | 776,584 | |||||||||
26,516 | Fidelity National Financial Inc., Class A | 356,905 | |||||||||
26,440 | Marsh & McLennan Companies, Inc. | 583,795 |
Nuveen Investments
33
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Insurance (continued) | |||||||||||
13,767 | Prudential Financial, Inc. | $ | 685,046 | ||||||||
20,523 | Travelers Companies, Inc. | 1,023,277 | |||||||||
Total Insurance | 3,425,607 | ||||||||||
Internet & Catalog Retail – 1.8% | |||||||||||
43,303 | Amazon.com, Inc., (2) | 5,825,120 | |||||||||
10,272 | HSN, Inc., (2) | 207,392 | |||||||||
8,768 | Ticketmaster Online-Citysearch, Inc., (2) | 107,145 | |||||||||
Total Internet & Catalog Retail | 6,139,657 | ||||||||||
Internet Software & Services – 6.0% | |||||||||||
41,279 | Akamai Technologies, Inc., (2) | 1,045,597 | |||||||||
1,786 | AOL Inc., (2) | 41,578 | |||||||||
150,284 | eBay Inc., (2) | 3,537,685 | |||||||||
22,002 | Google Inc., Class A, (2) | 13,640,800 | |||||||||
20,317 | IAC/InterActiveCorp., (2) | 416,092 | |||||||||
43,598 | United Online, Inc. | 313,470 | |||||||||
114,833 | Yahoo! Inc., (2) | 1,926,898 | |||||||||
Total Internet Software & Services | 20,922,120 | ||||||||||
IT Services – 2.2% | |||||||||||
63,955 | Automatic Data Processing, Inc. | 2,738,553 | |||||||||
23,982 | Fidelity National Information Services | 562,138 | |||||||||
8,016 | Global Payments Inc. | 431,742 | |||||||||
25,383 | Infosys Technologies Limited, Sponsored ADR | 1,402,918 | |||||||||
9,286 | Lender Processing Services Inc. | 377,569 | |||||||||
63,865 | Paychex, Inc. | 1,956,824 | |||||||||
2,370 | Visa Inc. | 207,280 | |||||||||
Total IT Services | 7,677,024 | ||||||||||
Life Sciences Tools & Services – 0.6% | |||||||||||
40,283 | Life Technologies Corporation, (2) | 2,103,981 | |||||||||
Machinery – 1.6% | |||||||||||
27,468 | Caterpillar Inc. | 1,565,401 | |||||||||
7,373 | Danaher Corporation | 554,450 | |||||||||
18,505 | Deere & Company | 1,000,935 | |||||||||
14,812 | Eaton Corporation | 942,339 | |||||||||
26,873 | Graco Inc. | 767,762 | |||||||||
15,335 | SPX Corporation | 838,825 | |||||||||
Total Machinery | 5,669,712 | ||||||||||
Media – 3.7% | |||||||||||
19,588 | CBS Corporation, Class B | 275,211 | |||||||||
187,991 | Comcast Corporation, Special Class A | 3,009,736 | |||||||||
124,848 | DIRECTV Group, Inc., (2) | 4,163,681 | |||||||||
2,869 | Liberty Media Starz, (2) | 132,404 | |||||||||
89,100 | News Corporation, Class A | 1,219,779 | |||||||||
51,500 | News Corporation, Class B | 819,880 | |||||||||
22,763 | Omnicom Group, Inc. | 891,171 | |||||||||
18,377 | Regal Entertainment Group, Class A | 265,364 | |||||||||
4,206 | Time Warner Cable, Class A, (2) | 174,086 | |||||||||
19,652 | Time Warner Inc. | 572,659 | |||||||||
39,358 | Walt Disney Company | 1,269,296 | |||||||||
Total Media | 12,793,267 |
Nuveen Investments
34
Shares | Description (1) | Value | |||||||||
Metals & Mining – 0.8% | |||||||||||
13,175 | AngloGold Ashanti Limited, Sponsored ADR | $ | 529,372 | ||||||||
38,713 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 1,236,106 | |||||||||
34,953 | Southern Copper Corporation | 1,150,303 | |||||||||
Total Metals & Mining | 2,915,781 | ||||||||||
Multiline Retail – 1.3% | |||||||||||
10,735 | Family Dollar Stores, Inc. | 298,755 | |||||||||
26,043 | Macy's Inc. | 436,481 | |||||||||
15,904 | J.C. Penney Company, Inc. | 423,205 | |||||||||
12,477 | Kohl's Corporation, (2) | 672,885 | |||||||||
19,969 | Sears Holding Corporation, (2) | 1,666,413 | |||||||||
23,248 | Target Corporation | 1,124,506 | |||||||||
Total Multiline Retail | 4,622,245 | ||||||||||
Multi-Utilities – 0.5% | |||||||||||
20,595 | Integrys Energy Group, Inc. | 864,784 | |||||||||
24,659 | OGE Energy Corp. | 909,671 | |||||||||
Total Multi-Utilities | 1,774,455 | ||||||||||
Oil, Gas & Consumable Fuels – 4.6% | |||||||||||
3,301 | BP PLC, Sponsored ADR | 191,359 | |||||||||
58,928 | Chevron Corporation | 4,536,867 | |||||||||
48,990 | ConocoPhillips | 2,501,919 | |||||||||
32,307 | Delta Petroleum Corporation, (2) | 33,599 | |||||||||
96,450 | Exxon Mobil Corporation | 6,576,926 | |||||||||
3,531 | Royal Dutch Shell PLC, Class A, Sponsored ADR | 212,248 | |||||||||
41,765 | XTO Energy, Inc. | 1,943,325 | |||||||||
Total Oil, Gas & Consumable Fuels | 15,996,243 | ||||||||||
Paper & Forest Products – 0.2% | |||||||||||
22,531 | International Paper Company | 603,380 | |||||||||
Pharmaceuticals – 4.7% | |||||||||||
35,398 | Abbott Laboratories | 1,911,138 | |||||||||
11,443 | Allergan, Inc. | 721,023 | |||||||||
59,127 | Bristol-Myers Squibb Company | 1,492,957 | |||||||||
31,526 | Eli Lilly and Company | 1,125,793 | |||||||||
23,799 | Forest Laboratories, Inc., (2) | 764,186 | |||||||||
17,456 | GlaxoSmithKline PLC, Sponsored ADR | 737,516 | |||||||||
48,196 | Johnson & Johnson | 3,104,304 | |||||||||
87,565 | Merck & Company Inc. | 3,199,625 | |||||||||
3,434 | Novartis AG, Sponsored ADR | 186,913 | |||||||||
185,137 | Pfizer Inc. | 3,367,642 | |||||||||
Total Pharmaceuticals | 16,611,097 | ||||||||||
Professional Services – 0.6% | |||||||||||
17,552 | Manpower Inc. | 957,988 | |||||||||
21,853 | Resources Connection, Inc., (2) | 463,721 | |||||||||
30,314 | Robert Half International Inc. | 810,293 | |||||||||
Total Professional Services | 2,232,002 | ||||||||||
Real Estate Investment Trust – 0.8% | |||||||||||
18,413 | Apartment Investment & Management Company, Class A | 293,135 | |||||||||
49,000 | DCT Industrial Trust Inc. | 245,980 | |||||||||
693 | Developers Diversified Realty Corporation | 6,417 | |||||||||
31,354 | Nationwide Health Properties, Inc. | 1,103,034 |
Nuveen Investments
35
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Real Estate Investment Trust (continued) | |||||||||||
41,126 | Senior Housing Properties Trust | $ | 899,426 | ||||||||
28,958 | U-Store-It Trust | 211,973 | |||||||||
Total Real Estate Investment Trust | 2,759,965 | ||||||||||
Road & Rail – 0.5% | |||||||||||
18,911 | Burlington Northern Santa Fe Corporation | 1,865,003 | |||||||||
Semiconductors & Equipment – 5.6% | |||||||||||
58,540 | Advanced Micro Devices, Inc., (2) | 566,667 | |||||||||
62,568 | Altera Corporation | 1,415,914 | |||||||||
8,438 | Analog Devices, Inc. | 266,472 | |||||||||
103,433 | Applied Materials, Inc. | 1,441,856 | |||||||||
93,518 | Atmel Corporation, (2) | 431,118 | |||||||||
56,328 | Broadcom Corporation, Class A, (2) | 1,771,516 | |||||||||
1,213 | Cymer, Inc., (2) | 46,555 | |||||||||
26,308 | Cypress Semiconductor Corporation, (2) | 277,812 | |||||||||
28,948 | Fairchild Semiconductor International Inc., Class A, (2) | 289,191 | |||||||||
17,789 | Integrated Device Technology, Inc., (2) | 115,095 | |||||||||
323,233 | Intel Corporation | 6,593,953 | |||||||||
3,510 | Intersil Holding Corporation, Class A | 53,843 | |||||||||
51,703 | Linear Technology Corporation | 1,579,010 | |||||||||
95,908 | LSI Logic Corporation, (2) | 576,407 | |||||||||
15,600 | MEMC Electronic Materials, (2) | 212,472 | |||||||||
32,890 | National Semiconductor Corporation | 505,190 | |||||||||
5,618 | Novellus Systems, Inc., (2) | 131,124 | |||||||||
90,484 | NVIDIA Corporation, (2) | 1,690,241 | |||||||||
46,578 | Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR | 532,852 | |||||||||
23,367 | Texas Instruments Incorporated | 608,944 | |||||||||
15,815 | Varian Semiconductor Equipment Associate, (2) | 567,442 | |||||||||
Total Semiconductors & Equipment | 19,673,674 | ||||||||||
Software – 9.6% | |||||||||||
188,254 | Activision Blizzard Inc., (2) | 2,091,502 | |||||||||
89,411 | Adobe Systems Incorporated, (2) | 3,288,537 | |||||||||
47,345 | Autodesk, Inc., (2) | 1,203,036 | |||||||||
86,697 | CA Inc. | 1,947,215 | |||||||||
33,659 | Cadence Design Systems, Inc., (2) | 201,617 | |||||||||
53,883 | Electronic Arts Inc. (EA), (2) | 956,423 | |||||||||
13,847 | McAfee Inc., (2) | 561,773 | |||||||||
487,044 | Microsoft Corporation | 14,849,972 | |||||||||
337,167 | Oracle Corporation | 8,274,078 | |||||||||
6,664 | SAP AG, Sponsored ADR | 311,942 | |||||||||
Total Software | 33,686,095 | ||||||||||
Specialty Retail – 1.8% | |||||||||||
20,968 | Best Buy Co., Inc. | 827,397 | |||||||||
25,619 | Gap, Inc. | 536,718 | |||||||||
47,740 | Home Depot, Inc. | 1,381,118 | |||||||||
37,574 | Limited Brands, Inc. | 722,924 | |||||||||
39,717 | Lowe's Companies, Inc. | 928,981 | |||||||||
18,535 | TJX Companies, Inc. | 677,454 | |||||||||
36,106 | Urban Outfitters, Inc., (2) | 1,263,349 | |||||||||
Total Specialty Retail | 6,337,941 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.2% | |||||||||||
13,280 | Coach, Inc. | 485,118 |
Nuveen Investments
36
Shares | Description (1) | Value | |||||||||
Thrifts & Mortgage Finance – 0.0% | |||||||||||
2,762 | Capitol Federal Financial | $ | 86,893 | ||||||||
1,712 | Tree.com Inc., (2) | 15,665 | |||||||||
Total Thrifts & Mortgage Finance | 102,558 | ||||||||||
Tobacco – 0.8% | |||||||||||
44,792 | Altria Group, Inc. | 879,267 | |||||||||
41,164 | Philip Morris International | 1,983,693 | |||||||||
Total Tobacco | 2,862,960 | ||||||||||
Wireless Telecommunication Services – 0.3% | |||||||||||
20,311 | China Mobile Hong Kong Limited, Sponsored ADR | 943,040 | |||||||||
11,357 | Vodafone Group PLC, Sponsored ADR | 262,233 | |||||||||
Total Wireless Telecommunication Services | 1,205,273 | ||||||||||
Total Common Stocks (cost $288,889,063) | 354,811,565 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 3.1% | |||||||||||||||||||
$ | 10,916 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/2009, repurchase price $10,916,135, collateralized by $11,220,000 U.S. Treasury Notes, 3.250%, due 12/31/16, value $11,135,850 | 0.000 | % | 1/04/10 | $ | 10,916,135 | ||||||||||||
Total Short-Term Investments (cost $10,916,135) | 10,916,135 | ||||||||||||||||||
Total Investments (cost $299,805,198) – 104.5% | 365,727,700 |
Number of Contracts | Type | Notional Amount (3) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (4.5)% (4) | |||||||||||||||||||||||
(570 | ) | Mini-NDX 100 Index | $ | (9,975,000 | ) | 1/16/10 | $ | 175.0 | $ | (696,825 | ) | ||||||||||||
(570 | ) | Mini-NDX 100 Index | (10,117,500 | ) | 1/16/10 | 177.5 | (565,725 | ) | |||||||||||||||
(649 | ) | Mini-NDX 100 Index | (11,682,000 | ) | 1/16/10 | 180.0 | (498,108 | ) | |||||||||||||||
(516 | ) | Mini-NDX 100 Index | (9,030,000 | ) | 2/20/10 | 175.0 | (710,790 | ) | |||||||||||||||
(970 | ) | Mini-NDX 100 Index | (17,217,500 | ) | 2/20/10 | 177.5 | (1,137,325 | ) | |||||||||||||||
(687 | ) | Mini-NDX 100 Index | (12,366,000 | ) | 2/20/10 | 180.0 | (674,977 | ) | |||||||||||||||
(632 | ) | Mini-NDX 100 Index | (11,376,000 | ) | 3/20/10 | 180.0 | (722,060 | ) | |||||||||||||||
(100 | ) | NASDAQ 100 Index | (17,500,000 | ) | 1/16/10 | 1,750.0 | (1,224,500 | ) | |||||||||||||||
(87 | ) | NASDAQ 100 Index | (15,442,500 | ) | 1/16/10 | 1,775.0 | (862,605 | ) | |||||||||||||||
(62 | ) | NASDAQ 100 Index | (11,160,000 | ) | 1/16/10 | 1,800.0 | (476,780 | ) | |||||||||||||||
(62 | ) | NASDAQ 100 Index | (10,850,000 | ) | 2/20/10 | 1,750.0 | (854,670 | ) | |||||||||||||||
(97 | ) | NASDAQ 100 Index | (17,217,500 | ) | 2/20/10 | 1,775.0 | (1,140,720 | ) | |||||||||||||||
(53 | ) | NASDAQ 100 Index | (9,540,000 | ) | 2/20/10 | 1,800.0 | (521,785 | ) | |||||||||||||||
(43 | ) | NASDAQ 100 Index | (7,740,000 | ) | 3/20/10 | 1,800.0 | (492,135 | ) | |||||||||||||||
(201 | ) | S&P 500 Index | (21,607,500 | ) | 1/16/10 | 1,075.0 | (897,465 | ) | |||||||||||||||
(380 | ) | S&P 500 Index | (41,800,000 | ) | 1/16/10 | 1,100.0 | (936,700 | ) | |||||||||||||||
(196 | ) | S&P 500 Index | (22,050,000 | ) | 1/16/10 | 1,125.0 | (197,960 | ) | |||||||||||||||
(201 | ) | S&P 500 Index | (21,607,500 | ) | 2/20/10 | 1,075.0 | (1,126,605 | ) | |||||||||||||||
(169 | ) | S&P 500 Index | (18,590,000 | ) | 2/20/10 | 1,100.0 | (656,565 | ) | |||||||||||||||
(208 | ) | S&P 500 Index | (23,400,000 | ) | 2/20/10 | 1,125.0 | (510,640 | ) | |||||||||||||||
(202 | ) | S&P 500 Index | (22,220,000 | ) | 3/20/10 | 1,100.0 | (988,790 | ) | |||||||||||||||
(6,655 | ) | Total Call Options Written (premiums received $13,581,441) | (342,489,000 | ) | (15,893,730 | ) | |||||||||||||||||
Other Assets Less Liabilities – 0.0% | 64,258 | ||||||||||||||||||||||
Net Assets – 100% | $ | 349,898,228 |
(1) All percentages in the Portfolio of Investments are based on net assets.
(2) Non-income producing; issuer has not declared a dividend within the past twelve months.
(3) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(4) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written.
ADR American Depositary Receipt.
See accompanying notes to financial statements.
Nuveen Investments
37
JPG
Nuveen Equity Premium and Growth Fund
Portfolio of INVESTMENTS
December 31, 2009
Shares | Description (1) | Value | |||||||||
Common Stocks – 100.2% | |||||||||||
Aerospace & Defense – 2.7% | |||||||||||
29,568 | Boeing Company | $ | 1,600,516 | ||||||||
6,100 | Goodrich Corporation | 391,925 | |||||||||
33,500 | Honeywell International Inc. | 1,313,200 | |||||||||
14,596 | Raytheon Company | 751,986 | |||||||||
30,603 | United Technologies Corporation | 2,124,154 | |||||||||
Total Aerospace & Defense | 6,181,781 | ||||||||||
Air Freight & Logistics – 0.9% | |||||||||||
36,398 | United Parcel Service, Inc., Class B | 2,088,153 | |||||||||
Airlines – 0.1% | |||||||||||
13,335 | Lan Airlines S.A., Sponsored ADR | 222,294 | |||||||||
Auto Components – 0.1% | |||||||||||
9,310 | Cooper Tire & Rubber | 186,666 | |||||||||
Automobiles – 0.4% | |||||||||||
99,139 | Ford Motor Company, (2) | 991,390 | |||||||||
Beverages – 2.2% | |||||||||||
47,604 | Coca-Cola Company | 2,713,428 | |||||||||
37,091 | PepsiCo, Inc. | 2,255,133 | |||||||||
Total Beverages | 4,968,561 | ||||||||||
Biotechnology – 0.9% | |||||||||||
14,225 | Celgene Corporation, (2) | 792,048 | |||||||||
1,860 | Cephalon, Inc., (2) | 116,083 | |||||||||
727 | Facet Biotech Corporation, (2) | 12,781 | |||||||||
22,781 | Gilead Sciences, Inc., (2) | 985,962 | |||||||||
10,546 | PDL Biopahrma Inc. | 72,346 | |||||||||
Total Biotechnology | 1,979,220 | ||||||||||
Capital Markets – 2.7% | |||||||||||
54,291 | Charles Schwab Corporation | 1,021,757 | |||||||||
24,811 | Federated Investors Inc., Class B | 682,303 | |||||||||
15,129 | Goldman Sachs Group, Inc. | 2,554,380 | |||||||||
49,201 | Morgan Stanley | 1,456,350 | |||||||||
14,786 | Waddell & Reed Financial, Inc., Class A | 451,564 | |||||||||
Total Capital Markets | 6,166,354 | ||||||||||
Chemicals – 2.5% | |||||||||||
46,539 | Dow Chemical Company | 1,285,873 | |||||||||
46,695 | E.I. Du Pont de Nemours and Company | 1,572,221 | |||||||||
7,335 | Eastman Chemical Company | 441,860 | |||||||||
10,663 | Monsanto Company | 871,700 | |||||||||
28,707 | Olin Corporation | 502,947 |
Nuveen Investments
38
Shares | Description (1) | Value | |||||||||
Chemicals (continued) | |||||||||||
10,861 | PPG Industries, Inc. | $ | 635,803 | ||||||||
16,683 | RPM International, Inc. | 339,165 | |||||||||
Total Chemicals | 5,649,569 | ||||||||||
Commercial Banks – 2.6% | |||||||||||
13,229 | Comerica Incorporated | 391,182 | |||||||||
10,892 | First Horizon National Corporation, (2) | 145,948 | |||||||||
8,730 | FirstMerit Corporation | 175,822 | |||||||||
49,105 | Huntington BancShares Inc. | 179,233 | |||||||||
33,673 | Regions Financial Corporation | 178,130 | |||||||||
67,986 | U.S. Bancorp | 1,530,365 | |||||||||
119,526 | Wells Fargo & Company | 3,226,007 | |||||||||
Total Commercial Banks | 5,826,687 | ||||||||||
Commercial Services & Supplies – 0.4% | |||||||||||
13,362 | Avery Dennison Corporation | 487,579 | |||||||||
14,872 | Deluxe Corporation | 219,957 | |||||||||
12,600 | Kimball International Inc., Class B | 107,352 | |||||||||
18,017 | Standard Register Company | 91,887 | |||||||||
Total Commercial Services & Supplies | 906,775 | ||||||||||
Communications Equipment – 2.9% | |||||||||||
142,101 | Cisco Systems, Inc., (2) | 3,401,898 | |||||||||
104,122 | Motorola, Inc. | 807,987 | |||||||||
47,503 | QUALCOMM, Inc. | 2,197,489 | |||||||||
950 | Research In Motion Limited, (2) | 64,163 | |||||||||
Total Communications Equipment | 6,471,537 | ||||||||||
Computers & Peripherals – 4.7% | |||||||||||
20,703 | Apple, Inc., (2) | 4,365,435 | |||||||||
45,123 | Dell Inc., (2) | 647,966 | |||||||||
60,347 | EMC Corporation, (2) | 1,054,262 | |||||||||
34,871 | International Business Machines Corporation (IBM) | 4,564,614 | |||||||||
Total Computers & Peripherals | 10,632,277 | ||||||||||
Consumer Finance – 0.4% | |||||||||||
21,743 | American Express Company | 881,026 | |||||||||
Containers & Packaging – 0.2% | |||||||||||
20,200 | Packaging Corp. of America | 464,802 | |||||||||
Distributors – 0.4% | |||||||||||
21,250 | Genuine Parts Company | 806,650 | |||||||||
Diversified Consumer Services – 0.2% | |||||||||||
4,377 | Apollo Group, Inc., Class A, (2) | 265,159 | |||||||||
Diversified Financial Services – 3.8% | |||||||||||
160,276 | Bank of America Corporation | 2,413,757 | |||||||||
114,696 | Citigroup Inc. | 379,644 | |||||||||
2,592 | CME Group, Inc. | 870,782 | |||||||||
4,467 | Intercontinental Exchange, Inc., (2) | 501,644 | |||||||||
100,078 | JPMorgan Chase & Co. | 4,170,250 | |||||||||
14,394 | New York Stock Exchange Euronext | 364,168 | |||||||||
Total Diversified Financial Services | 8,700,245 |
Nuveen Investments
39
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Diversified Telecommunication Services – 3.9% | |||||||||||
4,000 | Alaska Communications Systems Group Inc. | $ | 31,920 | ||||||||
176,121 | AT&T Inc. | 4,936,671 | |||||||||
81,953 | Frontier Communications Corporation | 640,053 | |||||||||
97,267 | Verizon Communications Inc. | 3,222,456 | |||||||||
Total Diversified Telecommunication Services | 8,831,100 | ||||||||||
Electric Utilities – 1.6% | |||||||||||
77,700 | Duke Energy Corporation | 1,337,217 | |||||||||
66,284 | Great Plains Energy Incorporated | 1,285,247 | |||||||||
26,885 | Progress Energy, Inc. | 1,102,554 | |||||||||
Total Electric Utilities | 3,725,018 | ||||||||||
Electrical Equipment – 1.0% | |||||||||||
9,653 | Cooper Industries PLC | 411,604 | |||||||||
33,709 | Emerson Electric Company | 1,436,003 | |||||||||
910 | First Solar Inc., (2) | 123,214 | |||||||||
200 | Hubbell Incorporated, Class B | 9,460 | |||||||||
7,017 | Rockwell Automation, Inc. | 329,659 | |||||||||
Total Electrical Equipment | 2,309,940 | ||||||||||
Electronic Equipment & Instruments – 0.4% | |||||||||||
49,758 | Corning Incorporated | 960,827 | |||||||||
Energy Equipment & Services – 2.3% | |||||||||||
12,700 | Baker Hughes Incorporated | 514,096 | |||||||||
2,246 | Carbo Ceramics Inc. | 153,110 | |||||||||
34,006 | Halliburton Company | 1,023,241 | |||||||||
15,267 | National-Oilwell Varco Inc., (2) | 673,122 | |||||||||
3,009 | Noble Corporation | 122,466 | |||||||||
33,839 | Schlumberger Limited | 2,202,581 | |||||||||
11,347 | Smith International, Inc. | 308,298 | |||||||||
2,000 | Tidewater Inc. | 95,900 | |||||||||
548 | Transocean Inc., (2) | 45,374 | |||||||||
Total Energy Equipment & Services | 5,138,188 | ||||||||||
Food & Staples Retailing – 2.2% | |||||||||||
40,695 | CVS Caremark Corporation | 1,310,786 | |||||||||
23,637 | SUPERVALU INC. | 300,426 | |||||||||
59,864 | Wal-Mart Stores, Inc. | 3,199,731 | |||||||||
6,512 | Whole Foods Market, Inc., (2) | 178,754 | |||||||||
Total Food & Staples Retailing | 4,989,697 | ||||||||||
Food Products – 1.1% | |||||||||||
15,186 | Archer-Daniels-Midland Company | 475,474 | |||||||||
34,000 | ConAgra Foods, Inc. | 783,700 | |||||||||
48,088 | Kraft Foods Inc., Class A | 1,307,032 | |||||||||
Total Food Products | 2,566,206 | ||||||||||
Gas Utilities – 0.5% | |||||||||||
18,129 | Nicor Inc. | 763,231 | |||||||||
7,318 | ONEOK, Inc. | 326,163 | |||||||||
Total Gas Utilities | 1,089,394 |
Nuveen Investments
40
Shares | Description (1) | Value | |||||||||
Health Care Equipment & Supplies – 0.7% | |||||||||||
28,854 | Boston Scientific Corporation, (2) | $ | 259,686 | ||||||||
4,168 | Hologic Inc., (2) | 60,436 | |||||||||
29,845 | Medtronic, Inc. | 1,312,583 | |||||||||
Total Health Care Equipment & Supplies | 1,632,705 | ||||||||||
Health Care Providers & Services – 2.0% | |||||||||||
14,603 | Aetna Inc. | 462,915 | |||||||||
1,637 | Brookdale Senior Living Inc. | 29,777 | |||||||||
9,087 | Express Scripts, Inc., (2) | 785,571 | |||||||||
540 | Henry Schein Inc., (2) | 28,404 | |||||||||
5,614 | Humana Inc., (2) | 246,398 | |||||||||
2,280 | Lincare Holdings, (2) | 84,634 | |||||||||
15,149 | Medco Health Solutions, Inc., (2) | 968,173 | |||||||||
24,649 | Tenet Healthcare Corporation, (2) | 132,858 | |||||||||
34,501 | UnitedHealth Group Incorporated | 1,051,590 | |||||||||
13,342 | Wellpoint Inc., (2) | 777,705 | |||||||||
Total Health Care Providers & Services | 4,568,025 | ||||||||||
Hotels, Restaurants & Leisure – 1.1% | |||||||||||
6,173 | International Game Technology | 115,867 | |||||||||
32,031 | McDonald's Corporation | 2,000,016 | |||||||||
4,557 | Tim Hortons Inc. | 139,034 | |||||||||
43,350 | Wendy's International, Inc. | 203,312 | |||||||||
Total Hotels, Restaurants & Leisure | 2,458,229 | ||||||||||
Household Durables – 0.7% | |||||||||||
9,283 | Black & Decker Corporation | 601,817 | |||||||||
10,000 | KB Home | 136,800 | |||||||||
3,450 | Lennar Corporation, Class A | 44,057 | |||||||||
38,879 | Newell Rubbermaid Inc. | 583,574 | |||||||||
2,527 | Whirlpool Corporation | 203,828 | |||||||||
Total Household Durables | 1,570,076 | ||||||||||
Household Products – 2.6% | |||||||||||
7,688 | Colgate-Palmolive Company | 631,569 | |||||||||
13,458 | Kimberly-Clark Corporation | 857,409 | |||||||||
73,507 | Procter & Gamble Company | 4,456,729 | |||||||||
Total Household Products | 5,945,707 | ||||||||||
Industrial Conglomerates – 2.8% | |||||||||||
18,610 | 3M Co. | 1,538,489 | |||||||||
316,320 | General Electric Company | 4,785,921 | |||||||||
Total Industrial Conglomerates | 6,324,410 | ||||||||||
Insurance – 2.1% | |||||||||||
22,025 | Arthur J. Gallagher & Co. | 495,783 | |||||||||
17,072 | Fidelity National Financial Inc., Class A | 229,789 | |||||||||
34,793 | Lincoln National Corporation | 865,650 | |||||||||
27,861 | Marsh & McLennan Companies, Inc. | 615,171 | |||||||||
16,648 | Mercury General Corporation | 653,600 | |||||||||
14,581 | Prudential Financial, Inc. | 725,551 | |||||||||
16,400 | Travelers Companies, Inc. | 817,704 | |||||||||
13,560 | Unitrin, Inc. | 298,998 | |||||||||
Total Insurance | 4,702,246 |
Nuveen Investments
41
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Internet & Catalog Retail – 0.6% | |||||||||||
10,150 | Amazon.com, Inc., (2) | $ | 1,365,378 | ||||||||
Internet Software & Services – 2.4% | |||||||||||
4,723 | Akamai Technologies, Inc., (2) | 119,634 | |||||||||
29,263 | eBay Inc., (2) | 688,851 | |||||||||
5,752 | Google Inc., Class A, (2) | 3,566,125 | |||||||||
22,961 | United Online, Inc. | 165,090 | |||||||||
10,377 | VeriSign, Inc., (2) | 251,538 | |||||||||
40,985 | Yahoo! Inc., (2) | 687,728 | |||||||||
Total Internet Software & Services | 5,478,966 | ||||||||||
IT Services – 1.1% | |||||||||||
35,833 | Automatic Data Processing, Inc. | 1,534,369 | |||||||||
11,786 | Cognizant Technology Solutions Corporation, Class A, (2) | 533,906 | |||||||||
11,474 | Fidelity National Information Services | 268,951 | |||||||||
2,687 | Lender Processing Services Inc. | 109,253 | |||||||||
640 | Visa Inc. | 55,974 | |||||||||
Total IT Services | 2,502,453 | ||||||||||
Leisure Equipment & Products – 0.6% | |||||||||||
38,906 | Eastman Kodak Company | 164,183 | |||||||||
36,716 | Mattel, Inc. | 733,586 | |||||||||
8,000 | Polaris Industries Inc. | 349,040 | |||||||||
Total Leisure Equipment & Products | 1,246,809 | ||||||||||
Life Sciences Tools & Services – 0.1% | |||||||||||
1,370 | Covance, Inc., (2) | 74,761 | |||||||||
2,730 | Life Technologies Corporation, (2) | 142,588 | |||||||||
Total Life Sciences Tools & Services | 217,349 | ||||||||||
Machinery – 2.6% | |||||||||||
9,670 | Briggs & Stratton Corporation | 180,926 | |||||||||
27,600 | Caterpillar Inc. | 1,572,924 | |||||||||
10,116 | Cummins Inc. | 463,920 | |||||||||
19,204 | Deere & Company | 1,038,744 | |||||||||
18,936 | Illinois Tool Works, Inc. | 908,739 | |||||||||
7,101 | Ingersoll-Rand PLC | 253,790 | |||||||||
5,500 | Pentair, Inc. | 177,650 | |||||||||
12,000 | Snap-on Incorporated | 507,120 | |||||||||
13,500 | Stanley Works | 695,385 | |||||||||
Total Machinery | 5,799,198 | ||||||||||
Media – 1.5% | |||||||||||
102,034 | Comcast Corporation, Class A | 1,720,293 | |||||||||
5,070 | Lamar Advertising Company, (2) | 157,626 | |||||||||
30,710 | New York Times, Class A, (2) | 379,576 | |||||||||
52,079 | Regal Entertainment Group, Class A | 752,021 | |||||||||
45,144 | Sirius XM Radio Inc., (2) | 27,086 | |||||||||
24,892 | World Wrestling Entertainment Inc. | 381,594 | |||||||||
Total Media | 3,418,196 | ||||||||||
Metals & Mining – 0.9% | |||||||||||
2,385 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 76,153 | |||||||||
14,246 | Freeport-McMoRan Copper & Gold, Inc. | 1,143,811 | |||||||||
523 | ArcelorMittal, Sponsored ADR | 23,927 | |||||||||
11,632 | Southern Copper Corporation | 382,809 | |||||||||
6,332 | United States Steel Corporation | 349,020 | |||||||||
Total Metals & Mining | 1,975,720 |
Nuveen Investments
42
Shares | Description (1) | Value | |||||||||
Multiline Retail – 0.7% | |||||||||||
12,421 | Nordstrom, Inc. | $ | 466,781 | ||||||||
23,038 | Target Corporation | 1,114,348 | |||||||||
Total Multiline Retail | 1,581,129 | ||||||||||
Multi-Utilities – 2.3% | |||||||||||
42,310 | Ameren Corporation | 1,182,565 | |||||||||
56,900 | CenterPoint Energy, Inc. | 825,619 | |||||||||
16,562 | Consolidated Edison, Inc. | 752,412 | |||||||||
30,928 | Dominion Resources, Inc. | 1,203,718 | |||||||||
31,554 | Integrys Energy Group, Inc. | 1,324,952 | |||||||||
Total Multi-Utilities | 5,289,266 | ||||||||||
Oil, Gas & Consumable Fuels – 10.2% | |||||||||||
16,861 | Chesapeake Energy Corporation | 436,363 | |||||||||
56,886 | Chevron Corporation | 4,379,653 | |||||||||
48,311 | ConocoPhillips | 2,467,243 | |||||||||
11,087 | CONSOL Energy Inc. | 552,133 | |||||||||
6,936 | EOG Resources, Inc. | 674,873 | |||||||||
115,452 | Exxon Mobil Corporation | 7,872,667 | |||||||||
9,247 | Frontline Limited | 252,628 | |||||||||
8,381 | Hess Corporation | 507,051 | |||||||||
22,790 | Marathon Oil Corporation | 711,504 | |||||||||
24,500 | Occidental Petroleum Corporation | 1,993,075 | |||||||||
14,441 | Peabody Energy Corporation | 652,878 | |||||||||
24,031 | Ship Financial International Limited | 327,543 | |||||||||
7,634 | Southwestern Energy Company, (2) | 367,959 | |||||||||
23,943 | StatoilHydro ASA, Sponsored ADR | 596,420 | |||||||||
21,254 | Valero Energy Corporation | 356,005 | |||||||||
20,451 | XTO Energy, Inc. | 951,585 | |||||||||
Total Oil, Gas & Consumable Fuels | 23,099,580 | ||||||||||
Paper & Forest Products – 0.4% | |||||||||||
19,923 | Weyerhaeuser Company | 859,478 | |||||||||
Personal Products – 0.3% | |||||||||||
23,000 | Avon Products, Inc. | 724,500 | |||||||||
Pharmaceuticals – 8.5% | |||||||||||
54,001 | Abbott Laboratories | 2,915,514 | |||||||||
1,006 | AstraZeneca PLC, Sponsored ADR | 47,222 | |||||||||
78,273 | Bristol-Myers Squibb Company | 1,976,393 | |||||||||
35,400 | Eli Lilly and Company | 1,264,134 | |||||||||
71,211 | Johnson & Johnson | 4,586,700 | |||||||||
101,459 | Merck & Company Inc. | 3,707,312 | |||||||||
243,805 | Pfizer Inc. | 4,434,813 | |||||||||
8,687 | Sanofi-Aventis, Sponsored ADR | 341,138 | |||||||||
Total Pharmaceuticals | 19,273,226 | ||||||||||
Real Estate Investment Trust – 1.7% | |||||||||||
35,857 | Brandywine Realty Trust | 408,770 | |||||||||
10,519 | CapLease Inc. | 46,073 | |||||||||
16,748 | Hospitality Properties Trust | 397,095 | |||||||||
54,667 | Lexington Corporate Properties Trust | 332,375 | |||||||||
42,376 | Nationwide Health Properties, Inc. | 1,490,788 | |||||||||
50,200 | Senior Housing Properties Trust | 1,097,874 | |||||||||
14,334 | U-Store-It Trust | 104,925 | |||||||||
Total Real Estate Investment Trust | 3,877,900 |
Nuveen Investments
43
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2009
Shares | Description (1) | Value | |||||||||
Semiconductors & Equipment – 2.7% | |||||||||||
22,459 | Analog Devices, Inc. | $ | 709,255 | ||||||||
35,573 | Applied Materials, Inc. | 495,888 | |||||||||
154,408 | Intel Corporation | 3,149,923 | |||||||||
3,100 | MEMC Electronic Materials, (2) | 42,222 | |||||||||
20,804 | Microchip Technology Incorporated | 604,564 | |||||||||
20,469 | NVIDIA Corporation, (2) | 382,361 | |||||||||
30,804 | Texas Instruments Incorporated | 802,752 | |||||||||
Total Semiconductors & Equipment | 6,186,965 | ||||||||||
Software – 4.7% | |||||||||||
17,693 | Adobe Systems Incorporated, (2) | 650,749 | |||||||||
9,211 | Autodesk, Inc., (2) | 234,052 | |||||||||
219,226 | Microsoft Corporation | 6,684,200 | |||||||||
106,742 | Oracle Corporation | 2,619,449 | |||||||||
5,607 | Salesforce.com, Inc., (2) | 413,628 | |||||||||
Total Software | 10,602,078 | ||||||||||
Specialty Retail – 2.6% | |||||||||||
6,450 | Abercrombie & Fitch Co., Class A | 224,783 | |||||||||
23,200 | American Eagle Outfitters, Inc. | 393,936 | |||||||||
11,675 | Best Buy Co., Inc. | 460,696 | |||||||||
18,656 | Gap, Inc. | 390,843 | |||||||||
64,570 | Home Depot, Inc. | 1,868,010 | |||||||||
33,172 | Limited Brands, Inc. | 638,229 | |||||||||
43,280 | Lowe's Companies, Inc. | 1,012,319 | |||||||||
7,793 | Tiffany & Co. | 335,099 | |||||||||
14,600 | TJX Companies, Inc. | 533,630 | |||||||||
Total Specialty Retail | 5,857,545 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.3% | |||||||||||
10,646 | VF Corporation | 779,713 | |||||||||
Thrifts & Mortgage Finance – 0.4% | |||||||||||
58,864 | New York Community Bancorp, Inc. | 854,117 | |||||||||
Tobacco – 1.9% | |||||||||||
70,986 | Altria Group, Inc. | 1,393,455 | |||||||||
45,473 | Philip Morris International | 2,191,344 | |||||||||
12,200 | Reynolds American Inc. | 646,234 | |||||||||
Total Tobacco | 4,231,033 | ||||||||||
Trading Companies & Distributors – 0.2% | |||||||||||
3,200 | W.W. Grainger, Inc. | 309,856 | |||||||||
Wireless Telecommunication Services – 0.4% | |||||||||||
54,217 | Sprint Nextel Corporation, (2) | 198,434 | |||||||||
27,100 | Vodafone Group PLC, Sponsored ADR | 625,739 | |||||||||
Total Wireless Telecommunication Services | 824,173 | ||||||||||
Total Common Stocks (cost $233,314,026) | 226,555,542 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 2.2% | |||||||||||||||||||
$ | 4,967 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/2009, repurchase price $4,967,039, collateralized by $5,090,000 U.S. Treasury Notes, 1.000%, due 12/31/11, value $5,070,913 | 0.000 | % | 1/04/10 | $ | 4,967,039 | ||||||||||||
Total Short-Term Investments (cost $4,967,039) | 4,967,039 | ||||||||||||||||||
Total Investments (cost $238,281,065) – 102.4% | 231,522,581 |
Nuveen Investments
44
Number of Contracts | Type | Notional Amount (3) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (2.4)% (4) | |||||||||||||||||||||||
(199 | ) | S&P 500 Index | $ | (21,392,500 | ) | 1/16/10 | $ | 1,075 | $ | (888,535 | ) | ||||||||||||
(395 | ) | S&P 500 Index | (43,450,000 | ) | 1/16/10 | 1,100 | (973,675 | ) | |||||||||||||||
(213 | ) | S&P 500 Index | (23,962,500 | ) | 1/16/10 | 1,125 | (215,130 | ) | |||||||||||||||
(204 | ) | S&P 500 Index | (21,930,000 | ) | 2/20/10 | 1,075 | (1,143,420 | ) | |||||||||||||||
(179 | ) | S&P 500 Index | (19,690,000 | ) | 2/20/10 | 1,100 | (695,415 | ) | |||||||||||||||
(229 | ) | S&P 500 Index | (25,762,500 | ) | 2/20/10 | 1,125 | (562,195 | ) | |||||||||||||||
(199 | ) | S&P 500 Index | (21,890,000 | ) | 3/20/10 | 1,100 | (974,105 | ) | |||||||||||||||
(1,618 | ) | Total Call Options Written (premiums received $6,419,805) | (178,077,500 | ) | (5,452,475 | ) | |||||||||||||||||
Other Assets Less Liabilities – 0.0% | 117,055 | ||||||||||||||||||||||
Net Assets – 100% | $ | 226,187,161 |
(1) All percentages in the Portfolio of Investments are based on net assets.
(2) Non-income producing; issuer has not declared a dividend within the past twelve months.
(3) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(4) The Fund may designate up to 100% of its Common Stock investments to cover outstanding Call Options Written.
ADR American Depositary Receipt.
See accompanying notes to financial statements.
Nuveen Investments
45
Statement of
ASSETS & LIABILITIES
December 31, 2009
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at value (cost $489,050,294, $810,504,054, $299,805,198 and $238,281,065, respectively) | $ | 516,574,753 | $ | 910,892,936 | $ | 365,727,700 | $ | 231,522,581 | |||||||||||
Cash | 260,190 | — | — | — | |||||||||||||||
Cash in other banks | 111,001 | — | — | — | |||||||||||||||
Cash denominated in foreign currencies (cost $0, $2,748, $0 and $0, respectively) | — | 2,809 | — | — | |||||||||||||||
Receivables: | |||||||||||||||||||
Dividends and interest | 823,351 | 1,124,018 | 322,344 | 344,197 | |||||||||||||||
Investments sold | — | — | 60,000 | — | |||||||||||||||
Reclaims | 7,052 | 1,222 | 560 | 3,341 | |||||||||||||||
Other assets | 32,794 | 50,004 | 20,112 | 12,225 | |||||||||||||||
Total assets | 517,809,141 | 912,070,989 | 366,130,716 | 231,882,344 | |||||||||||||||
Liabilities | |||||||||||||||||||
Call options written, at value (premiums received $17,520,638, $32,461,956, $13,581,441 and $6,419,805, respectively) | 14,865,805 | 33,023,863 | 15,893,730 | 5,452,475 | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Management fees | 286,445 | 433,145 | 205,268 | 167,187 | |||||||||||||||
Other | 168,788 | 292,522 | 133,490 | 75,521 | |||||||||||||||
Total liabilities | 15,321,038 | 33,749,530 | 16,232,488 | 5,695,183 | |||||||||||||||
Net assets | $ | 502,488,103 | $ | 878,321,459 | $ | 349,898,228 | $ | 226,187,161 | |||||||||||
Shares outstanding | 38,417,887 | 66,058,537 | 25,846,491 | 16,311,642 | |||||||||||||||
Net asset value per share outstanding | $ | 13.08 | $ | 13.30 | $ | 13.54 | $ | 13.87 | |||||||||||
Net assets consist of: | |||||||||||||||||||
Shares, $.01 par value per share | $ | 384,179 | $ | 660,585 | $ | 258,465 | $ | 163,116 | |||||||||||
Paid-in surplus | 557,116,354 | 909,269,029 | 344,003,814 | 269,464,009 | |||||||||||||||
Undistributed (Over-distribution of) net investment income | — | — | — | — | |||||||||||||||
Accumulated net realized gain (loss) from investments, foreign currency and call options written | (85,191,722 | ) | (131,435,191 | ) | (57,974,264 | ) | (37,648,810 | ) | |||||||||||
Net unrealized appreciation (depreciation) of investments, foreign currency and call options written | 30,179,292 | 99,827,036 | 63,610,213 | (5,791,154 | ) | ||||||||||||||
Net assets | $ | 502,488,103 | $ | 878,321,459 | $ | 349,898,228 | $ | 226,187,161 |
See accompanying notes to financial statements.
Nuveen Investments
46
Statement of
OPERATIONS
Year Ended December 31, 2009
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Investment Income | |||||||||||||||||||
Dividends (net of foreign tax withheld of $10,057, $44,371, $28,940 and $11,273, respectively) | $ | 13,876,058 | $ | 19,463,539 | $ | 6,047,739 | $ | 6,263,154 | |||||||||||
Interest | 14,926 | 27,944 | 10,566 | 5,784 | |||||||||||||||
Total investment income | 13,890,984 | 19,491,483 | 6,058,305 | 6,268,938 | |||||||||||||||
Expenses | |||||||||||||||||||
Management fees | 4,264,407 | 7,414,307 | 2,967,842 | 1,842,582 | |||||||||||||||
Shareholders' servicing agent fees and expenses | 1,150 | 1,721 | 494 | 315 | |||||||||||||||
Custodian's fees and expenses | 93,724 | 156,168 | 80,500 | 50,112 | |||||||||||||||
Trustees' fees and expenses | 15,139 | 26,523 | 10,473 | 6,678 | |||||||||||||||
Professional fees | 52,217 | 72,754 | 41,301 | 29,914 | |||||||||||||||
Shareholders' reports — printing and mailing expenses | 119,794 | 182,697 | 72,600 | 57,645 | |||||||||||||||
Stock exchange listing fees | 13,223 | 22,754 | 9,219 | 9,219 | |||||||||||||||
Investor relations expense | 110,747 | 140,776 | 53,863 | 34,667 | |||||||||||||||
Other expenses | 54,903 | 174,354 | 116,512 | 41,713 | |||||||||||||||
Total expenses before custodian fee credit and expense reimbursement | 4,725,304 | 8,192,054 | 3,352,804 | 2,072,845 | |||||||||||||||
Custodian fee credit | (125 | ) | (214 | ) | (67 | ) | (41 | ) | |||||||||||
Expense reimbursement | (1,361,426 | ) | (2,511,949 | ) | (662,802 | ) | — | ||||||||||||
Net expenses | 3,363,753 | 5,679,891 | 2,689,935 | 2,072,804 | |||||||||||||||
Net investment income | 10,527,231 | 13,811,592 | 3,368,370 | 4,196,134 | |||||||||||||||
Realized and Unrealized Gain (Loss) | |||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | (26,294,038 | ) | (15,571,630 | ) | (8,114,092 | ) | (16,690,491 | ) | |||||||||||
Call options written | (54,214,352 | ) | (103,740,435 | ) | (44,195,720 | ) | (19,341,719 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 133,449,670 | 245,680,015 | 118,229,072 | 61,613,159 | |||||||||||||||
Call options written | (1,821,561 | ) | (11,923,845 | ) | (7,769,794 | ) | (524,178 | ) | |||||||||||
Net realized and unrealized gain (loss) | 51,119,719 | 114,444,105 | 58,149,466 | 25,056,771 | |||||||||||||||
Net increase (decrease) in net assets from operations | $ | 61,646,950 | $ | 128,255,697 | $ | 61,517,836 | $ | 29,252,905 |
See accompanying notes to financial statements.
Nuveen Investments
47
Statement of
CHANGES in NET ASSETS
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Year Ended 12/31/09 | Year Ended 12/31/08 | Year Ended 12/31/09 | Year Ended 12/31/08 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income | $ | 10,527,231 | $ | 14,903,399 | $ | 13,811,592 | $ | 19,861,308 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | (26,294,038 | ) | (1,456,797 | ) | (15,571,630 | ) | (19,195,055 | ) | |||||||||||
Call options written | (54,214,352 | ) | 105,051,099 | (103,740,435 | ) | 177,079,782 | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 133,449,670 | (272,201,460 | ) | 245,680,015 | (464,376,500 | ) | |||||||||||||
Call options written | (1,821,561 | ) | (2,097,986 | ) | (11,923,845 | ) | (1,747,207 | ) | |||||||||||
Net increase (decrease) in net assets from operations | 61,646,950 | (155,801,745 | ) | 128,255,697 | (288,377,672 | ) | |||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From net investment income | (10,853,786 | ) | (15,175,060 | ) | (14,591,730 | ) | (40,991,628 | ) | |||||||||||
From accumulated net realized gains | (9,162,194 | ) | (43,974,543 | ) | — | (64,641,062 | ) | ||||||||||||
Tax return of capital | (29,564,460 | ) | — | (74,229,886 | ) | — | |||||||||||||
Decrease in net assets from distributions to shareholders | (49,580,440 | ) | (59,149,603 | ) | (88,821,616 | ) | (105,632,690 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Shares repurchased | (1,284,611 | ) | (1,275,804 | ) | (2,691,146 | ) | (1,938,029 | ) | |||||||||||
Net increase (decrease) in net assets from capital share transactions | (1,284,611 | ) | (1,275,804 | ) | (2,691,146 | ) | (1,938,029 | ) | |||||||||||
Net increase (decrease) in net assets | 10,781,899 | (216,227,152 | ) | 36,742,935 | (395,948,391 | ) | |||||||||||||
Net assets at the beginning of year | 491,706,204 | 707,933,356 | 841,578,524 | 1,237,526,915 | |||||||||||||||
Net assets at the end of year | $ | 502,488,103 | $ | 491,706,204 | $ | 878,321,459 | $ | 841,578,524 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of year | $ | — | $ | — | $ | — | $ | (2,311 | ) |
Nuveen Investments
48
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Year Ended 12/31/09 | Year Ended 12/31/08 | Year Ended 12/31/09 | Year Ended 12/31/08 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income | $ | 3,368,370 | $ | 4,547,250 | $ | 4,196,134 | $ | 5,923,521 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | (8,114,092 | ) | 12,318,905 | (16,690,491 | ) | (1,308,979 | ) | ||||||||||||
Call options written | (44,195,720 | ) | 67,110,542 | (19,341,719 | ) | 37,807,215 | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 118,229,072 | (201,403,897 | ) | 61,613,159 | (118,850,499 | ) | |||||||||||||
Call options written | (7,769,794 | ) | (422,652 | ) | (524,178 | ) | (906,295 | ) | |||||||||||
Net increase (decrease) in net assets from operations | 61,517,836 | (117,849,852 | ) | 29,252,905 | (77,335,037 | ) | |||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From net investment income | (3,588,580 | ) | (23,919,169 | ) | (4,357,101 | ) | (6,573,928 | ) | |||||||||||
From accumulated net realized gains | — | (17,979,679 | ) | (3,431,689 | ) | (17,961,421 | ) | ||||||||||||
Tax return of capital | (30,654,318 | ) | — | (10,487,585 | ) | — | |||||||||||||
Decrease in net assets from distributions to shareholders | (34,242,898 | ) | (41,898,848 | ) | (18,276,375 | ) | (24,535,349 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Shares repurchased | (1,347,945 | ) | (1,278,064 | ) | (832,957 | ) | (1,386,261 | ) | |||||||||||
Net increase (decrease) in net assets from capital share transactions | (1,347,945 | ) | (1,278,064 | ) | (832,957 | ) | (1,386,261 | ) | |||||||||||
Net increase (decrease) in net assets | 25,926,993 | (161,026,764 | ) | 10,143,573 | (103,256,647 | ) | |||||||||||||
Net assets at the beginning of year | 323,971,235 | 484,997,999 | 216,043,588 | 319,300,235 | |||||||||||||||
Net assets at the end of year | $ | 349,898,228 | $ | 323,971,235 | $ | 226,187,161 | $ | 216,043,588 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of year | $ | — | $ | (765 | ) | $ | — | $ | (20 | ) |
See accompanying notes to financial statements.
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Notes to
FINANCIAL STATEMENTS
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding New York Stock Exchange (NYSE) symbols are Nuveen Equity Premium Income Fund (JPZ), Nuveen Equity Premium Opportunity Fund (JSN), Nuveen Equity Premium Advantage Fund (JLA) and Nuveen Equity Premium and Growth Fund (JPG) (collectively, the "Funds"). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies.
Equity Premium Income's (JPZ) investment objective is to provide a high level of current income and gains. The Fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of the Standard & Poor's (S&P) 500 Stock Index. The Fund also uses an index option strategy of selling index call options in seeking to moderate the volatility of returns relative to an all equity portfolio.
Equity Premium Opportunity's (JSN) primary investment objective is to provide a high level of current income and gains from net index option premiums. The Fund's secondary investment objective is to seek capital appreciation consistent with the Fund's strategy and its primary objective. The Fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of a 75% / 25% combination of the S&P 500 Stock Index and the NASDAQ-100 Stock Index, respectively. The Fund also uses an index option strategy of selling S&P 500 and NASDAQ index call options in seeking to moderate the volatility of returns relative to an all equity portfolio.
Equity Premium Advantage's (JLA) primary investment objective is to provide a high level of current income and gains from net index option premiums. The Fund's secondary investment objective is to seek capital appreciation consistent with the Fund's strategy and its primary objective. The Fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of a 50% / 50% combination of the S&P 500 Stock Index and the NASDAQ-100 Stock Index, respectively. The Fund also uses an index option strategy of selling S&P 500 and NASDAQ index call options in seeking to moderate the volatility of returns relative to an all equity portfolio.
Equity Premium and Growth's (JPG) primary investment objective is to provide a high level of current income and gains from net index option premiums. The Fund's secondary investment objective is to seek capital appreciation consistent with the Fund's strategy and its primary objective. The Fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of the S&P 500 Stock Index. The Fund also uses an index option strategy of selling index call options covering approximately 80% of the value of the Fund's equity portfolio in seeking to moderate the volatility of returns relative to an all equity portfolio.
In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards CodificationTM (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States.
Investment Valuation
Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. If significant market events occur between the time of the determination of the closing price of a foreign security on an exchange and the time that the Fund's NAV is determined, or if under the Fund's procedures, the closing price of a foreign security is not deemed to be reliable, and there could be a material effect on the Fund's NAV, the security would be
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50
valued at fair value as determined in accordance with procedures established in good faith by the Board of Trustees. When market price quotes are not readily available, the pricing service or, in the absence of a pricing service for a particular investment, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including prices of investments of comparable quality, type of issue, 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. Short-term investments are valued at amortized cost, which approximates value.
Index options are generally valued at the average of the closing bid and asked quotations. The close of trading of index options traded on the Chicago Board Options Exchange normally occurs at 4:15 Eastern Time (ET), which is different from the normal 4:00 ET close of the NYSE (the time of day as of which each Fund's NAV is calculated). Under normal market circumstances, closing index option quotations are considered to reflect the index option contract values as of the close of the NYSE and will be used to value the option contracts. However, a significant change in the S&P 500 or NASDAQ-100 futures contracts between the NYSE close and the options market close will be considered as an indication that closing market quotations for index options do not reflect the value of the contracts as of the stock market close. In the event of such a significant change, the Fund's Board of Trustees, or its designee, will determine a valu e for the options. Any such valuation will likely take into account any information that may be available about the actual trading price of the affected option as of 4:00 ET, and if no such information is reliably available, the valuation of the option may take into account various option pricing methodologies, as determined to be appropriate under the circumstances.
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.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income is recorded on an accrual basis.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Each Fund intends to distribute substantially all of its investment company taxable income to shareholders. In any year when the Funds realize net capital gains, each Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains.
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.
Distributions to Shareholders
Distributions to shareholders 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 accounting principles generally accepted in the United States.
The Funds make quarterly cash distributions to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Funds' Board of Trustees, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund's investment strategy through regular quarterly distributions (a "Managed Distribution Program"). Total distributions during a calendar year generally will be made from each Fund's net investment income, net realized capital gains and net unrealized capital gains in the Fund's portfolio, if any. The portion of distributions paid from net unrealized gains, if any, would be distributed from the Fund's assets and would be treated by shareholders as a non-taxable distribution for tax purposes. In the event that total distributions during a calendar year exceed a Fund's total return on net asset value, the difference will be treated as a return of capital for tax purposes and will reduce net asset value per share. If a Fund's total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and are reflected in the accompanying financial statements.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency forwards, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Fund's investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a
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Notes to
FINANCIAL STATEMENTS (continued)
spot (i.e. cash) at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments, other assets and liabilities are translated into U.S. dollars at 4:00 p.m. E.T. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received.
The realized and unrealized gains or losses resulting from changes in foreign exchange rates are recognized as a component of "Net realized gain (loss) from investments and foreign currency" and "Change in net unrealized appreciation (depreciation) of investments and foreign currency" on the Statement of Operations, when applicable.
Options Transactions
The Funds are subject to equity price risk in the normal course of pursuing their investment objectives and are authorized to purchase and write (sell) call and put options on securities, futures, swaps ("swaptions") or currencies in an attempt to manage this and other possible risks. The purchase of put options involves the risk of loss of all or a part of the cash paid for the options. Put options purchased are accounted for in the same manner as portfolio securities. The risk associated with purchasing put options is limited to the premium paid. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a component of "Call options written, at value" on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option expires or a Fund enters into a closing purchase transaction. The changes in v alue of options written during the fiscal period are recognized as "Change in net unrealized appreciation (depreciation) of call options written" on the Statement of Operations. When a written call or put option expires or a Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on the closing purchase transaction, including commission, is recognized as "Net realized gain (loss) from call options written" on the Statement of Operations. The Fund, as a writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market.
The Funds did not purchase call or put options during the fiscal year ended December 31, 2009. The average notional amount of call options written during the fiscal year ended December 31, 2009, was as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Average notional amount of call options written | $ | (463,229,500 | ) | $ | (808,979,250 | ) | $ | (320,571,850 | ) | $ | (165,521,500 | ) |
Refer to Footnote 3—Derivative Instruments and Hedging Activities for further details on call options written.
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. 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. Futures contracts expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guar antees the futures contracts against default.
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52
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), 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 fluctuat e, either up or down, by at least the predetermined threshold amount.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is each Fund's policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
In determining the value of each Fund's investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Significant unobservable inputs (including management's assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of December 31, 2009:
Equity Premium Income (JPZ) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments: | |||||||||||||||||||
Common Stocks | $ | 494,796,039 | $ | — | $ | — | $ | 494,796,039 | |||||||||||
Short-Term Investments | 21,778,714 | — | — | 21,778,714 | |||||||||||||||
Call Options Written | (14,865,805 | ) | — | — | (14,865,805 | ) | |||||||||||||
Total | $ | 501,708,948 | $ | — | $ | — | $ | 501,708,948 | |||||||||||
Equity Premium Opportunity (JSN) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments: | |||||||||||||||||||
Common Stocks | $ | 878,355,455 | $ | — | $ | — | $ | 878,355,455 | |||||||||||
Short-Term Investments | 32,537,481 | — | — | 32,537,481 | |||||||||||||||
Call Options Written | (33,023,863 | ) | — | — | (33,023,863 | ) | |||||||||||||
Total | $ | 877,869,073 | $ | — | $ | — | $ | 877,869,073 |
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Notes to
FINANCIAL STATEMENTS (continued)
Equity Premium Advantage (JLA) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments: | |||||||||||||||||||
Common Stocks | $ | 354,811,565 | $ | — | $ | — | $ | 354,811,565 | |||||||||||
Short-Term Investments | 10,916,135 | — | — | 10,916,135 | |||||||||||||||
Call Options Written | (15,893,730 | ) | — | — | (15,893,730 | ) | |||||||||||||
Total | $ | 349,833,970 | $ | — | $ | — | $ | 349,833,970 | |||||||||||
Equity Premium and Growth (JPG) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments: | |||||||||||||||||||
Common Stocks | $ | 226,555,542 | $ | — | $ | — | $ | 226,555,542 | |||||||||||
Short-Term Investments | 4,967,039 | — | — | 4,967,039 | |||||||||||||||
Call Options Written | (5,452,475 | ) | — | — | (5,452,475 | ) | |||||||||||||
Total | $ | 226,070,106 | $ | — | $ | — | $ | 226,070,106 |
3. Derivative Instruments and Hedging Activities
During the current fiscal period, the Funds adopted amendments to authoritative guidance under GAAP on disclosures about derivative instruments and hedging activities. This guidance is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. 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, under this guidance they are considered to be non-hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.
The following tables present the fair value of all derivative instruments held by the Funds as of December 31, 2009, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.
Equity Premium Income (JPZ)
Location on the Statement of Assets and Liabilities | |||||||||||||||||||||||
Underlying | Derivative | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Risk Exposure | Instrument | Location | Value | Location | Value | ||||||||||||||||||
Equity Price | Options | — | $ | — | Call options written, at value | $ | 14,865,805 |
Equity Premium Opportunity (JSN)
Location on the Statement of Assets and Liabilities | |||||||||||||||||||||||
Underlying | Derivative | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Risk Exposure | Instrument | Location | Value | Location | Value | ||||||||||||||||||
Equity Price | Options | — | $ | — | Call options written, at value | $ | 33,023,863 |
Equity Premium Advantage (JLA)
Location on the Statement of Assets and Liabilities | |||||||||||||||||||||||
Underlying | Derivative | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Risk Exposure | Instrument | Location | Value | Location | Value | ||||||||||||||||||
Equity Price | Options | — | $ | — | Call options written, at value | $ | 15,893,730 |
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54
Equity Premium and Growth (JPG)
Location on the Statement of Assets and Liabilities | |||||||||||||||||||||||
Underlying | Derivative | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Risk Exposure | Instrument | Location | Value | Location | Value | ||||||||||||||||||
Equity Price | Options | — | $ | — | Call options written, at value | $ | 5,452,475 |
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended December 31, 2009, on derivative instruments, as well as the primary risk exposure associated with each.
Net Realized Gain (Loss) from Call Options Written | Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | |||||||||||||||
Risk Exposure | |||||||||||||||||||
Equity Price | $ | (54,214,352 | ) | $ | (103,740,435 | ) | $ | (44,195,720 | ) | $ | (19,341,719 | ) | |||||||
Change in Net Unrealized Appreciation (Depreciation) of Call Options Written | Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | |||||||||||||||
Risk Exposure | |||||||||||||||||||
Equity Price | $ | (1,821,561 | ) | $ | (11,923,845 | ) | $ | (7,769,794 | ) | $ | (524,178 | ) |
4. Fund Shares
Transactions in shares were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Year Ended 12/31/09 | Year Ended 12/31/08 | Year Ended 12/31/09 | Year Ended 12/31/08 | ||||||||||||||||
Shares repurchased | (136,900 | ) | (127,300 | ) | (285,200 | ) | (194,100 | ) | |||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased | $ | 9.36 | $ | 10.00 | $ | 9.42 | $ | 9.96 | |||||||||||
Discount per share repurchased | 18.71 | % | 20.21 | % | 19.14 | % | 20.72 | % | |||||||||||
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Year Ended 12/31/09 | Year Ended 12/31/08 | Year Ended 12/31/09 | Year Ended 12/31/08 | ||||||||||||||||
Shares repurchased | (141,550 | ) | (126,500 | ) | (90,400 | ) | (134,300 | ) | |||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased | $ | 9.50 | $ | 10.08 | $ | 9.19 | $ | 10.30 | |||||||||||
Discount per share repurchased | 20.16 | % | 20.81 | % | 20.34 | % | 22.85 | % |
5. Investment Transactions
Purchases and sales (excluding call options written and short-term investments) during the fiscal year ended December 31, 2009, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Purchases | $ | 42,721,629 | $ | 35,453,396 | $ | 35,473,235 | $ | 12,359,604 | |||||||||||
Sales | 130,440,212 | 192,550,791 | 97,645,120 | 37,670,908 |
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Notes to
FINANCIAL STATEMENTS (continued)
Transactions in call options written during the fiscal year ended December 31, 2009, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||||||||
Outstanding, beginning of year | 5,217 | $ | 23,243,839 | 15,201 | $ | 40,820,889 | |||||||||||||
Options written | 39,678 | 164,941,077 | 101,576 | 286,588,805 | |||||||||||||||
Options terminated in closing purchase transactions | (38,472 | ) | (161,337,133 | ) | (99,496 | ) | (279,475,768 | ) | |||||||||||
Options expired | (2,006 | ) | (9,327,145 | ) | (5,119 | ) | (15,471,970 | ) | |||||||||||
Outstanding, end of year | 4,417 | $ | 17,520,638 | 12,162 | $ | 32,461,956 | |||||||||||||
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||||||||
Outstanding, beginning of year | 7,476 | $ | 15,373,901 | 1,861 | $ | 8,176,023 | |||||||||||||
Options written | 52,446 | 113,014,734 | 14,011 | 58,291,066 | |||||||||||||||
Options terminated in closing purchase transactions | (50,546 | ) | (109,279,849 | ) | (13,550 | ) | (56,727,344 | ) | |||||||||||
Options expired | (2,721 | ) | (5,527,345 | ) | (704 | ) | (3,319,940 | ) | |||||||||||
Outstanding, end of year | 6,655 | $ | 13,581,441 | 1,618 | $ | 6,419,805 |
6. Income Tax Information
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 recording income, timing differences in recognizing certain gains and losses on investment transactions and the recognition of unrealized gain or loss for tax (mark-to-market) on option contracts. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At December 31, 2009, the cost of investments (excluding call options written) was as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Cost of Investments | $ | 488,972,693 | $ | 810,707,553 | $ | 299,788,040 | $ | 238,268,842 |
Gross unrealized appreciation and gross unrealized depreciation of investments (excluding call options written) at December 31, 2009, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Gross unrealized: | |||||||||||||||||||
Appreciation | $ | 98,308,685 | $ | 189,874,929 | $ | 87,645,513 | $ | 28,935,330 | |||||||||||
Depreciation | (70,706,625 | ) | (89,689,546 | ) | (21,705,853 | ) | (35,681,591 | ) | |||||||||||
Net unrealized appreciation (depreciation) of investments | $ | 27,602,060 | $ | 100,185,383 | $ | 65,939,660 | $ | (6,746,261 | ) |
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56
The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2009, the Funds' tax year end, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Undistributed net ordinary income * | $ | — | $ | — | $ | — | $ | — | |||||||||||
Undistributed net long-term capital gains | — | — | — | — |
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended December 31, 2009 and December 31, 2008, was designated for purposes of the dividends paid deduction as follows:
2009 | Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | |||||||||||||||
Distributions from net ordinary income * | $ | 10,853,786 | $ | 14,591,730 | $ | 3,588,580 | $ | 4,357,101 | |||||||||||
Distributions from net long-term capital gains** | 9,162,194 | — | — | 3,431,689 | |||||||||||||||
Tax return of capital | 29,564,460 | 74,229,886 | 30,654,318 | 10,487,585 | |||||||||||||||
2008 | Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | |||||||||||||||
Distributions from net ordinary income * | $ | 15,175,060 | $ | 40,991,628 | $ | 23,919,169 | $ | 6,573,928 | |||||||||||
Distributions from net long-term capital gains | 43,974,543 | 64,641,062 | 17,979,679 | 17,961,421 | |||||||||||||||
Tax return of capital | — | — | — | — |
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
** The Fund hereby designates this amount paid during the fiscal year ended December 31, 2009, as long-term capital gain dividends pursuant to Internal Revenue Code Section 852(b)(3).
At December 31, 2009, 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 follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Expiration: December 31, 2017 | $ | 75,442,946 | $ | 104,952,898 | $ | 46,480,475 | $ | 33,170,912 |
The Funds elected to defer net realized losses from investments incurred from November 1, 2009 through December 31, 2009, the Funds' tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Post-October capital losses | $ | 7,093,919 | $ | 26,780,603 | $ | 13,805,314 | $ | 3,489,238 |
7. Management Fees and Other Transactions with Affiliates
Each Fund's management fee is separated into 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 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.
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Notes to
FINANCIAL STATEMENTS (continued)
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
Average Daily Managed Assets* | Equity Premium Income (JPZ) Equity Premium Opportunity (JSN) Equity Premium Advantage (JLA) Fund-Level Fee Rate | ||||||
For the first $500 million | .7000 | % | |||||
For the next $500 million | .6750 | ||||||
For the next $500 million | .6500 | ||||||
For the next $500 million | .6250 | ||||||
For Managed Assets over $2 billion | .6000 | ||||||
Average Daily Managed Assets* | Equity Premium and Growth (JPG) Fund-Level Fee Rate | ||||||
For the first $500 million | .6800 | % | |||||
For the next $500 million | .6550 | ||||||
For the next $500 million | .6300 | ||||||
For the next $500 million | .6050 | ||||||
For Managed Assets over $2 billion | .5800 |
The annual complex-level fee for each Fund, payable monthly, which is additive to the fund-level fee, is calculated according to the following schedule:
Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | ||||||
$55 billion | .2000 | % | |||||
$56 billion | .1996 | ||||||
$57 billion | .1989 | ||||||
$60 billion | .1961 | ||||||
$63 billion | .1931 | ||||||
$66 billion | .1900 | ||||||
$71 billion | .1851 | ||||||
$76 billion | .1806 | ||||||
$80 billion | .1773 | ||||||
$91 billion | .1691 | ||||||
$125 billion | .1599 | ||||||
$200 billion | .1505 | ||||||
$250 billion | .1469 | ||||||
$300 billion | .1445 |
* The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fees, daily managed assets includes assets managed by the Adviser that are attributable to each fund's use of financial leverage. For these purposes, financial leverage includes the funds' 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, subject to an agreement by the Adviser to limit the amount of such assets for determining managed assets in certain circ umstances. As of December 31, 2009, the complex-level fee rate was .1887%.
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for the overall strategy and asset allocation decisions. The Adviser has entered into a Sub-Advisory Agreement with Gateway Investment Advisers, LLC ("Gateway"), under which Gateway manages the investment portfolio of the Fund. Gateway is compensated for its services to the Fund from the management fee paid to the Adviser.
The Funds pay 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 Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred
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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.
For the first eight years of Equity Premium Income's (JPZ) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending October 31, | Year Ending October 31, | ||||||||||||||
2004 | * | .30 | % | 2009 | .30 | % | |||||||||
2005 | .30 | 2010 | .22 | ||||||||||||
2006 | .30 | 2011 | .14 | ||||||||||||
2007 | .30 | 2012 | .07 | ||||||||||||
2008 | .30 |
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Income (JPZ) for any portion of its fees and expenses beyond October 31, 2012.
For the first eight years of Equity Premium Opportunity's (JSN) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending January 31, | Year Ending January 31, | ||||||||||||||
2005 | * | .30 | % | 2010 | .30 | % | |||||||||
2006 | .30 | 2011 | .22 | ||||||||||||
2007 | .30 | 2012 | .14 | ||||||||||||
2008 | .30 | 2013 | .07 | ||||||||||||
2009 | .30 |
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Opportunity (JSN) for any portion of its fees and expenses beyond January 31, 2013.
For the first six years of Equity Premium Advantage's (JLA) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending May 31, | Year Ending May 31, | ||||||||||||||
2005 | * | .20 | % | 2009 | .20 | % | |||||||||
2006 | .20 | 2010 | .20 | ||||||||||||
2007 | .20 | 2011 | .10 | ||||||||||||
2008 | .20 |
* From the commencement of operations.
The Adviser has not agreed to reimburse Equity Premium Advantage (JLA) for any portion of its fees and expenses beyond May 31, 2011.
8. New Accounting Pronouncements
On January 21, 2010, FASB issued changes to the authoritative guidance under GAAP for fair value measurements. The objective of which is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for both Level 2 and Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances and settlements in the Level 3 rollforward must be shown on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide th e Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time the Fund is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any.
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Financial
HIGHLIGHTS
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||||||||
Beginning Net Asset Value | Net Investment Income(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Investment Income | Capital Gains | Tax Return of Capital | Total | Offering Costs | Ending Net Asset Value | ||||||||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||
2009 | $ | 12.75 | $ | .27 | $ | 1.35 | $ | 1.62 | $ | (.28 | ) | $ | (.24 | ) | $ | (.77 | ) | $ | (1.29 | ) | $ | — | $ | 13.08 | |||||||||||||||||||
2008 | 18.30 | .39 | (4.41 | ) | (4.02 | ) | (.39 | ) | (1.14 | ) | — | (1.53 | ) | — | 12.75 | ||||||||||||||||||||||||||||
2007 | 18.59 | .44 | .98 | 1.42 | (.54 | ) | — | (1.17 | ) | (1.71 | ) | — | 18.30 | ||||||||||||||||||||||||||||||
2006 | 18.48 | .43 | 1.39 | 1.82 | (.43 | ) | — | (1.28 | ) | (1.71 | ) | — | *** | 18.59 | |||||||||||||||||||||||||||||
2005 | 19.28 | .42 | .48 | .90 | (.40 | ) | — | (1.30 | ) | (1.70 | ) | — | *** | 18.48 | |||||||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||
2009 | 12.69 | .21 | 1.74 | 1.95 | (.22 | ) | — | (1.12 | ) | (1.34 | ) | — | 13.30 | ||||||||||||||||||||||||||||||
2008 | 18.60 | .30 | (4.62 | ) | (4.32 | ) | (.62 | ) | (.97 | ) | — | (1.59 | ) | — | 12.69 | ||||||||||||||||||||||||||||
2007 | 18.36 | .36 | 1.66 | 2.02 | (.35 | ) | — | (1.43 | ) | (1.78 | ) | — | 18.60 | ||||||||||||||||||||||||||||||
2006 | 18.66 | .32 | 1.16 | 1.48 | (.32 | ) | — | (1.46 | ) | (1.78 | ) | — | *** | 18.36 | |||||||||||||||||||||||||||||
2005 | (b) | 19.10 | .30 | .78 | 1.08 | (.30 | ) | (.15 | ) | (1.05 | ) | (1.50 | ) | (.02 | ) | 18.66 | |||||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||
2009 | 12.47 | .13 | 2.26 | 2.39 | (.14 | ) | — | (1.18 | ) | (1.32 | ) | — | 13.54 | ||||||||||||||||||||||||||||||
2008 | 18.57 | .17 | (4.66 | ) | (4.49 | ) | (.92 | ) | (.69 | ) | — | (1.61 | ) | — | 12.47 | ||||||||||||||||||||||||||||
2007 | 18.35 | .22 | 1.82 | 2.04 | (.21 | ) | — | (1.61 | ) | (1.82 | ) | — | 18.57 | ||||||||||||||||||||||||||||||
2006 | 18.84 | .20 | 1.13 | 1.33 | (.20 | ) | — | (1.62 | ) | (1.82 | ) | — | *** | 18.35 | |||||||||||||||||||||||||||||
2005 | (c) | 19.10 | .10 | .60 | .70 | (.10 | ) | (.13 | ) | (.69 | ) | (.92 | ) | (.04 | ) | 18.84 | |||||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||
2009 | 13.17 | .26 | 1.56 | 1.82 | (.27 | ) | (.21 | ) | (.64 | ) | (1.12 | ) | — | 13.87 | |||||||||||||||||||||||||||||
2008 | 19.31 | .36 | (5.01 | ) | (4.65 | ) | (.40 | ) | (1.09 | ) | — | (1.49 | ) | — | 13.17 | ||||||||||||||||||||||||||||
2007 | 19.60 | .68 | .65 | 1.33 | (.79 | ) | — | (.83 | ) | (1.62 | ) | — | *** | 19.31 | |||||||||||||||||||||||||||||
2006 | 19.04 | .46 | 1.72 | 2.18 | (.49 | ) | (.14 | ) | (.99 | ) | (1.62 | ) | — | 19.60 | |||||||||||||||||||||||||||||
2005 | (d) | 19.10 | .04 | (.06 | ) | (.02 | ) | — | — | — | — | (.04 | ) | 19.04 |
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Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||
Total Returns | Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement** | |||||||||||||||||||||||||||||||||||||
Ending Market Value | Based on Market Value* | Based on Net Asset Value* | Ending Net Assets (000) | Expenses | Net Investment Income | Expenses | Net Investment Income | Portfolio Turnover Rate | |||||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||
2009 | $ | 13.00 | 35.46 | % | 13.74 | % | $ | 502,488 | .99 | % | 1.93 | % | .71 | % | 2.21 | % | 9 | % | |||||||||||||||||||||
2008 | 10.74 | (26.73 | ) | (23.27 | ) | 491,706 | .97 | 2.08 | .67 | 2.39 | 6 | ||||||||||||||||||||||||||||
2007 | 16.41 | (6.07 | ) | 7.80 | 707,933 | .95 | 2.05 | .65 | 2.35 | 7 | |||||||||||||||||||||||||||||
2006 | 19.22 | 21.30 | 10.22 | 715,680 | .96 | 1.99 | .66 | 2.30 | 23 | ||||||||||||||||||||||||||||||
2005 | 17.38 | (6.12 | ) | 4.88 | 708,049 | .96 | 1.93 | .66 | 2.24 | 29 | |||||||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||
2009 | $ | 13.20 | 38.49 | 16.39 | 878,321 | .98 | 1.35 | .68 | 1.65 | 4 | |||||||||||||||||||||||||||||
2008 | 10.68 | (26.64 | ) | (24.65 | ) | 841,579 | .96 | 1.52 | .66 | 1.82 | 8 | ||||||||||||||||||||||||||||
2007 | 16.34 | (3.03 | ) | 11.35 | 1,237,527 | .94 | 1.62 | .64 | 1.93 | 4 | |||||||||||||||||||||||||||||
2006 | 18.62 | 17.86 | 8.28 | 1,214,721 | .95 | 1.41 | .66 | 1.71 | 8 | ||||||||||||||||||||||||||||||
2005 | (b) | 17.39 | (5.90 | ) | 5.65 | 1,225,535 | .95 | **** | 1.40 | **** | .65 | **** | 1.70 | **** | 16 | ||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||
2009 | $ | 13.07 | 41.37 | 20.21 | 349,898 | 1.01 | .82 | .81 | 1.02 | 10 | |||||||||||||||||||||||||||||
2008 | 10.34 | (29.22 | ) | (25.63 | ) | 323,971 | .99 | .88 | .79 | 1.08 | 12 | ||||||||||||||||||||||||||||
2007 | 16.45 | (5.15 | ) | 11.50 | 484,998 | .98 | .99 | .78 | 1.19 | 3 | |||||||||||||||||||||||||||||
2006 | 19.20 | 20.52 | 7.35 | 474,781 | .99 | .85 | .79 | 1.05 | 26 | ||||||||||||||||||||||||||||||
2005 | (c) | 17.56 | (7.87 | ) | 3.43 | 482,979 | 1.01 | **** | .71 | **** | .81 | **** | .90 | **** | 9 | ||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||
2009 | $ | 13.09 | 33.63 | 14.77 | 226,187 | .98 | 1.99 | .98 | 1.99 | 6 | |||||||||||||||||||||||||||||
2008 | 10.77 | (30.09 | ) | (25.38 | ) | 216,044 | .96 | 2.13 | .96 | 2.13 | 12 | ||||||||||||||||||||||||||||
2007 | 17.13 | (3.55 | ) | 6.86 | 319,300 | .95 | 3.40 | .95 | 3.40 | 26 | |||||||||||||||||||||||||||||
2006 | 19.38 | 22.68 | 11.90 | 323,569 | .96 | 2.34 | .96 | 2.34 | 37 | ||||||||||||||||||||||||||||||
2005 | (d) | 17.25 | (13.75 | ) | (.31 | ) | 314,202 | 1.11 | **** | 2.08 | **** | 1.11 | **** | 2.08 | **** | — |
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
** After expense reimbursement from the Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
(a) Per share Net Investment Income is calculated using the average daily shares method.
(b) For the period January 26, 2005 (commencement of operations) through December 31, 2005.
(c) For the period May 25, 2005 (commencement of operations) through December 31, 2005.
(d) For the period November 22, 2005 (commencement of operations) through December 31, 2005.
See accompanying notes to financial statements.
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Board Members & 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 Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members 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.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | |||||||||||||||
INDEPENDENT BOARD MEMBERS: | |||||||||||||||||||
g ROBERT P. BREMNER | |||||||||||||||||||
8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Board Member | 1997 Class III | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C. | 199 | |||||||||||||||
g JACK B. EVANS | |||||||||||||||||||
10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1999 Class III | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; 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. | 199 | |||||||||||||||
g WILLIAM C. HUNTER | |||||||||||||||||||
3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2004 Class I | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; 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); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997- 2007), Credit Research Center at Georgetown University. | 199 | |||||||||||||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | |||||||||||||||
INDEPENDENT BOARD MEMBERS (continued): | |||||||||||||||||||
g DAVID J. KUNDERT | |||||||||||||||||||
10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2005 Class II | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation. | 199 | |||||||||||||||
g WILLIAM J. SCHNEIDER | |||||||||||||||||||
9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1997 Class III | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired, 2004) of Miller- Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition. | 199 | |||||||||||||||
g JUDITH M. STOCKDALE | |||||||||||||||||||
12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1997 Class I | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (from 1990 to 1994). | 199 | |||||||||||||||
g CAROLE E. STONE | |||||||||||||||||||
6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2007 Class I | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); Commissioner, New York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 199 | |||||||||||||||
g TERENCE J. TOTH | |||||||||||||||||||
9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2008 Class II | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Musso Capital Management (since 2008); CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (since 2004); Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust 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). | 199 | |||||||||||||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | |||||||||||||||
INTERESTED BOARD MEMBER: | |||||||||||||||||||
g JOHN P. AMBOIAN(2) | |||||||||||||||||||
6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2008 Class II | Chief Executive Officer (since July 2007) and Director (since 1999) of Nuveen Investments, Inc.; Chief Executive Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc. | 199 | |||||||||||||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||||||||||||
OFFICERS of the FUNDS: | |||||||||||||||||||
g GIFFORD R. ZIMMERMAN | |||||||||||||||||||
9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Investments, LLC; Managing Director, Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002); and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Chartered Financial Analyst. | 199 | |||||||||||||||
g WILLIAM ADAMS IV | |||||||||||||||||||
6/9/55 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | Executive Vice President of Nuveen Investments, Inc.; Executive Vice President, U.S. Structured Products of Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments. | 123 | |||||||||||||||
g MARK J.P. ANSON | |||||||||||||||||||
6/10/59 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | President and Executive Director of Nuveen Investments, Inc. (since 2007); President of Nuveen Investments Institutional Services Group LLC (since 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. | 199 | |||||||||||||||
g CEDRIC H. ANTOSIEWICZ | |||||||||||||||||||
1/11/62 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | Managing Director, (since 2004) previously, Vice President (1993-2004) of Nuveen Investments, LLC. | 123 | |||||||||||||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||||||||||||
OFFICERS of the FUNDS (continued): | |||||||||||||||||||
g NIZIDA ARRIAGA | |||||||||||||||||||
6/1/68 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Vice President (since 2007) of Nuveen Investments, LLC; previously, Portfolio Manager, Allstate Investments, LLC (1996-2006); Chartered Financial Analyst. | 199 | |||||||||||||||
g MICHAEL T. ATKINSON | |||||||||||||||||||
2/3/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2000 | Vice President (since 2002) of Nuveen Investments, LLC; Vice President of Nuveen Asset Management (since 2005). | 199 | |||||||||||||||
g MARGO L. COOK | |||||||||||||||||||
4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since Oct 2008) of Nuveen Investments, Inc.; previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 199 | |||||||||||||||
g LORNA C. FERGUSON | |||||||||||||||||||
10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2004) of Nuveen Investments, LLC and Managing Director (since 2005) of Nuveen Asset Management. | 199 | |||||||||||||||
g STEPHEN D. FOY | |||||||||||||||||||
5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Vice President (since 1993) and Funds Controller (since 1998) of Nuveen Investments, LLC; Vice President (since 2005) of Nuveen Asset Management; Certified Public Accountant. | 199 | |||||||||||||||
g SCOTT S. GRACE | |||||||||||||||||||
8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since September 2009) of Nuveen Investments, LLC, formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc,; formerly. Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 199 | |||||||||||||||
g WILLIAM T. HUFFMAN | |||||||||||||||||||
5/7/69 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Chief Operating Officer, Municipal Fixed Income (since 2008) of Nuveen Asset Management; previously, Chairman, President and Chief Executive Officer (2002-2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. | 134 | |||||||||||||||
g WALTER M. KELLY | |||||||||||||||||||
2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008), Vice President (2006-2008) formerly, Assistant Vice President and Assistant General Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. | 199 | |||||||||||||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||||||||||||
OFFICERS of the FUNDS (continued): | |||||||||||||||||||
g DAVID J. LAMB | |||||||||||||||||||
3/22/63 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2000 | Senior Vice President (since 2009), formerly, Vice President (2000-2009) of Nuveen Investments, LLC; Vice President (since 2005) of Nuveen Asset Management; Certified Public Accountant. | 199 | |||||||||||||||
g TINA M. LAZAR | |||||||||||||||||||
8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2009), formerly, Vice President of Nuveen Investments, LLC (1999-2009); Vice President of Nuveen Asset Management (since 2005). | 199 | |||||||||||||||
g LARRY W. MARTIN | |||||||||||||||||||
7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1988 | Vice President, Assistant Secretary and Assistant General Counsel of Nuveen Investments, LLC; Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007). | 199 | |||||||||||||||
g KEVIN J. MCCARTHY | |||||||||||||||||||
3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Investments, LLC; Managing Director (since 2008), formerly, Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ InvestmentManagement Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 199 | |||||||||||||||
g JOHN V. MILLER | |||||||||||||||||||
4/10/67 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | Chief Investment Officer and Managing Director (since 2007), formerly, Vice President (2002-2007) of Nuveen Asset Management and Managing Director (since 2007), formerly, Vice President (2002-2007) of Nuveen Investments, LLC; Chartered Financial Analyst. | 134 | |||||||||||||||
g GREGORY MINO | |||||||||||||||||||
1/4/71 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Vice President of Nuveen Investments, LLC (since 2008); previously, Director (2004-2007) and Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. | 199 | |||||||||||||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | |||||||||||||||
OFFICERS of the FUNDS (continued): | |||||||||||||||||||
g CHRISTOPHER M. ROHRBACHER | |||||||||||||||||||
8/1/71 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Vice President, Nuveen Investments, LLC (since 2008); Vice President and Assistant Secretary, Nuveen Asset Management (since 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). | 199 | |||||||||||||||
g JAMES F. RUANE | |||||||||||||||||||
7/3/62 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2007 | Vice President, Nuveen Investments, LLC (since 2007); prior thereto, Partner, Deloitte & Touche USA LLP (2005-2007), formerly, senior tax manager (2002-2005); Certified Public Accountant. | 199 | |||||||||||||||
g MARK L. WINGET | |||||||||||||||||||
12/21/68 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Vice President, Nuveen Investments, LLC (since 2008); Vice President and Assistant Secretary, Nuveen Asset Management (since 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007). | 199 | |||||||||||||||
(1) Board Members serve three year terms. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the Board Member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.
(3) Officers serve one year terms through July 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 Complex.
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Annual Investment Management
Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser (including sub-advisers) will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members mus t request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May Meeting"), the Boards of Trustees (each, a "Board" and each Trustee, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory and sub-advisory agreements for the Funds for an additional one-year period. These agreements include the investment advisory agreements between Nuveen Asset Management ("NAM") and each Fund and the sub-advisory agreements between NAM and Gateway Investment Advisers, LLC (the "Sub-Adviser"). In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting.
In addition, in evaluating the applicable advisory agreements (each an "Investment Management Agreement") and sub-advisory agreements (each a "Sub-advisory Agreement," and each Investment Management Agreement and Sub-advisory Agreement, an "Advisory Agreement"), the Independent Board Members reviewed a broad range of information relating to the Funds, NAM and the Sub-Adviser (NAM and the Sub-Adviser are each a "Fund Adviser"), including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("Winslow Capital"), which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by the respective Fund Adviser. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent
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Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of the Fund Adviser, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreements. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that the Fund Adviser or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered the Fund Adviser's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Nuveen funds' investment strategie s and mandates in seeking to continue to refine and improve the investment process for the funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPs") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refinancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet
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Annual Investment Management Agreement
Approval Process (continued)
leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the background, experience and track record of the Fund Adviser's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate the Fund Adviser's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures.
The Independent Board Members also considered NAM's oversight of the performance, business activities and compliance of the Sub-Adviser. In that regard, the Independent Board Members reviewed an evaluation of the Sub-Adviser from NAM. The evaluation also included information relating to the Sub-Adviser's organization, operations, personnel, assets under management, investment philosophy, strategies and techniques in managing the Funds, developments affecting the Sub-Adviser, and an analysis of the Sub-Adviser. As described in further detail below, the Board considered the performance of the Funds. The Board also recognized that the Sub-advisory Agreements were essentially agreements for portfolio management services only and the Sub-Adviser was not expected to supply other significant administrative services to the Funds. As part of their oversight, the Independent Board Members also continued their program of seeking to visit e ach sub-adviser to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. The Independent Board Members noted that NAM recommended the renewal of the applicable Sub-advisory Agreements
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and considered the basis for such recommendations and any qualifications in connection therewith.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the Funds under the respective Investment Management Agreement or Sub-advisory Agreement, as applicable, were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks. The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks for the quarter-, one- and three-year periods ending December 31, 2008 and for the same periods ending March 31, 2009. The Independent Board Members also reviewed performance information of the Nuveen funds managed by the Sub-Adviser in the ag gregate ranked by peer group and the performance of such funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings.
In comparing a fund's performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund's investment objectives and strategies thereby hindering a meaningful comparison of the fund's performance with that of the Performance Peer Group. The Independent Board Members further considered the performance of the Funds in the context of the volatile market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group").
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Annual Investment Management Agreement
Approval Process (continued)
The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the asset level of a fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. The Independent Board Members also considered, among other things, the differences in the use and type of leverage compared to the peers. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level an d complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio 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 Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such clients include separately managed accounts (both retail and institutional accounts) and funds that are not offered by Nuveen but are sub-advised by one of Nuveen's investment management teams. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account si zes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
In considering the fees of the Sub-Adviser, the Independent Board Members also considered the pricing schedule or fees that the Sub-Adviser charges for similar investment management services for other fund sponsors or clients (such as retail and/or institutional managed accounts) as applicable. The Independent Board Members noted that such fees were the result of arm's-length negotiations.
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3. Profitability of Fund Advisers
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business.
Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. The Independent Board Members also considered the Sub-Adviser's revenues, expenses and profitability margins (pre- and post-tax). Based on their review, the Independent Board Members were satisfied that the Sub-Adviser's level of profitability was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly
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Annual Investment Management Agreement
Approval Process (continued)
attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits the Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occ ur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members also recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adj ustment of revenues due to complex-wide pricing compared to the prior year.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement (as applicable) were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
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E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether the Fund Adviser received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. With respect to NAM, the Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. With respect to the Sub-Adviser, the Board considered that while the Sub-Adviser may select brokers that provide it with research services, it is the Sub-Adviser's current practice not to receive soft dollar cre dits in connection with trades executed for 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, unanimously concluded that the terms of the Investment Management Agreements and Sub-advisory Agreements are fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund and that the Investment Management Agreements and the Sub-advisory Agreements be renewed.
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Reinvest Automatically
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each quarter you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid
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Reinvest Automatically
Easily and Conveniently (continued)
by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your financial advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
Nuveen Investments
77
Glossary of Terms
Used in this Report
• Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
• Current Distribution Rate: Current distribution rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a tax return of capital.
• Net Asset Value (NAV): A Fund's NAV per share is calculated by subtracting the liabilities of the Fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day.
Nuveen Investments
78
Notes
Nuveen Investments
79
Notes
Nuveen Investments
80
Other Useful Information
Board of Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
PricewaterhouseCoopers LLP
Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. 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 at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange ("NYSE") the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Distribution Information
Equity Premium Income (JPZ), Equity Premium Opportunity (JSN), Equity Premium Advantage (JLA) and Equity Premium and Growth (JPG) hereby designate 100.00%, 100.00%, 100.00%, and 100.00%, respectively, of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction for corporations and 100.00%, 100.00%, 100.00%, and 100.00%, respectively, as qualified dividend income for individuals under Section 1(h)(11) of the Internal Revenue Code. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
Common Share Information
Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased shares of their common stock as shown in the accompanying table.
Fund | Shares Repurchased | ||||||
JPZ | 136,900 | ||||||
JSN | 285,200 | ||||||
JLA | 141,550 | ||||||
JPG | 90,400 |
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
Nuveen Investments
81
Nuveen Investments:
Serving Investors for Generations
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $141 billion of assets on September 30, 2009.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest.
Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
• Share prices
• Fund details
• Daily financial news
• Investor education
• Interactive planning tools
EAN-D-1209D
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/CEF/Info/Shareholder/. (To view the code, click on Fund Governance and then 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 expert is Jack B. Evans, who is “independent” for purposes of Item 3 of Form N-CSR.
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.
Nuveen Equity Premium Advantage Fund
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with PricewaterhouseCoopers LLP the Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Fund, 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 pre-approval exception for services provided directly to the Fund 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 Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND
|
| Audit Fees Billed |
| Audit-Related Fees |
| Tax Fees |
| All Other Fees |
| ||||
Fiscal Year Ended |
| to Fund (1) |
| Billed to Fund (2) |
| Billed to Fund (3) |
| Billed to Fund |
| ||||
December 31, 2009 |
| $ | 22,782 |
| $ | 0 |
| $ | 1,850 |
| $ | 0 |
|
|
|
|
|
|
|
|
|
|
| ||||
Percentage approved pursuant to pre-approval exception |
| 0 | % | 0 | % | 0 | % | 0 | % | ||||
|
|
|
|
|
|
|
|
|
| ||||
December 31, 2008 |
| $ | 24,260 |
| $ | 0 |
| $ | 3,750 |
| $ | 0 |
|
|
|
|
|
|
|
|
|
|
| ||||
Percentage approved pursuant to pre-approval exception |
| 0 | % | 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 and are not reported under “Audit Fees”.
(3) “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Asset Management (“NAM” or the “Adviser”), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to PricewaterhouseCoopers LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund 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 Fund’s audit is completed.
|
| Audit-Related Fees |
| Tax Fees Billed to |
| All Other Fees |
| |||
|
| Billed to Adviser and |
| Adviser and |
| Billed to Adviser |
| |||
|
| Affiliated Fund |
| Affiliated Fund |
| and Affiliated Fund |
| |||
Fiscal Year Ended |
| Service Providers |
| Service Providers |
| Service Providers |
| |||
December 31, 2009 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
|
|
|
|
|
|
|
|
| |||
Percentage approved pursuant to pre-approval exception |
| 0 | % | 0 | % | 0 | % | |||
|
|
|
|
|
|
|
| |||
December 31, 2008 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
|
|
|
|
|
|
|
|
| |||
Percentage approved pursuant to pre-approval exception |
| 0 | % | 0 | % | 0 | % |
NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLP’s independence.
|
|
|
| Total Non-Audit Fees |
|
|
|
|
| ||||
|
|
|
| billed to Adviser and |
|
|
|
|
| ||||
|
|
|
| Affiliated Fund Service |
| Total Non-Audit Fees |
|
|
| ||||
|
|
|
| Providers (engagements |
| billed to Adviser and |
|
|
| ||||
|
|
|
| related directly to the |
| Affiliated Fund Service |
|
|
| ||||
|
| Total Non-Audit Fees |
| operations and financial |
| Providers (all other |
|
|
| ||||
Fiscal Year Ended |
| Billed to Fund |
| reporting of the Fund) |
| engagements) |
| Total |
| ||||
December 31, 2009 |
| $ | 1,850 |
| $ | 0 |
| $ | 0 |
| $ | 1,850 |
|
December 31, 2008 |
| $ | 3,750 |
| $ | 0 |
| $ | 0 |
| $ | 3,750 |
|
“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 Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant’s Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, David J. Kundert, William J. Schneider and Terence J. Toth.
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.
The Adviser has engaged Gateway Investment Advisers, LLC (formerly known as Gateway Investment Advisers, L.P.) (“Gateway” or the “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has also delegated to the Sub-Adviser the full responsibility for proxy voting and related duties in accordance with the Sub-Adviser’s policy and procedures. The Adviser periodically will monitor the Sub-Adviser’s voting to ensure that they are carrying out their duties. The Sub-Adviser’s proxy voting policies and procedures are summarized as follows:
The SEC has issued regulations with respect to proxy voti ng for all registered investment advisers and their clients. To meet these requirements on a client’s behalf, Gateway has adopted policies as described below.
Gateway recognizes that voting rights are financial assets of a client’s account and that they must be managed accordingly, with voting decisions made in the client’s best interests. To that end and because of increasing complexity in administering policies in this area, Gateway has contracted with Institutional Shareholder Services, an affiliate of RiskMetrics Group (“ISS”), a nationally recognized proxy voting agent, to assist in administering client proxy votes and to provide voting recommendation on each ballot issue. ISS has developed its US Proxy Voting Manual, which provides guidelines for proxy voti ng that are designed to serve the best interest of investors. Effective July 1, 2003, Gateway incorporated these guidelines into its proxy voting policies and procedures and has instructed ISS to vote accordingly. Gateway’s policies and procedures now reflect ISS’s voting guidelines with regard to particular types of issues that my come before shareholder meetings, and also address the rare circumstances in which ISS’ voting recommendations may not be followed. The procedures also describe how any conflicts of interest would be handled.
The regulations were implemented to improve corporate governance and the functioning of the free market. We support these objectives and have adopted the policies and procedures as described above to effectively represent each client 146;s interests.
A client may obtain Gateway’s full proxy voting policy upon request. For clients for whom Gateway votes proxies, a voting record for an account’s respective votes can be obtained by calling or writing Gateway.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Gateway Investment Advisers, LLC (formerly known as Gateway Investment Advisers, L.P.) (“Gateway”, or the “Sub-Adviser”), as sub-adviser to provide discretionary investment advisory services. The following section provides information on the portfolio managers at the Sub-Adviser.
Item 8 (a)(1). PORTFOLIO MANAGER BIOGRAPHIES
J. Patrick Rogers and Kenneth H. Toft- J. Patrick Rogers, CFA, and Kenneth H. Toft, CFA, are the portfolio managers at Gateway responsible for investing the Managed Assets of the Nuveen Equity Premium Opportunity and Nuveen Equity Premium Advantage Funds. Mr. Rogers is Gateway’s Chief Executive Officer. He joined Gateway in 1989 and has been the President and a member of the Board of Directors of Gateway since 1995. Mr. Rogers also serves as co-portfolio manager of Gateway’s flagship open-end fund, the Gateway Fund. Mr. Toft joined Gateway in 1992 and has been Vice President and Portfolio Manager since 1997, prior to which he held the position of Senior Trader and Research Analyst.
Item 8 (a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS
As of December 31, 2009, Mr. Rogers was responsible for day-to-day management of 1 registered investment company account (excluding the Funds) having assets of approximately $4.7 billion. Mr. Toft was not responsible for day-to-day management of any investment company accounts other than the above-referenced Nuveen Funds. Mr. Rogers was responsible for day-to-day management of 2 other pooled investment vehicles having assets of approximately $86 million. Mr. Rogers was responsible for day-to-day management of 38 other accounts having assets of approximately $458 million in the aggregate, and Mr. Toft was responsible for day-to-day management of 18 other accounts having assets of approximately $295 million in the aggregate. Neither Mr. Rogers nor Mr. Toft managed any accounts having a performance based investment advisory fee.
POTENTIAL MATERIAL CONFLICTS OF INTEREST
As described above, the portfolio managers may manage other accounts with investment strategies similar to the Funds, including other investment companies and separately managed accounts. Fees earned by Gateway may vary among these accounts and the portfolio managers may personally invest in some but not all of these accounts. These factors could create conflicts of interest because a portfolio manager may have incentives to favor certain accounts over others, resulting in other accounts outperforming one or more of the Funds. A conflict may also exist if a portfolio manager identified a limited investment opportunity that may be appropriate for more than one account, but one or more of the Funds are not able to take full advantage of that opportunity due to the need to allocate that opportunity among multiple accounts. In addition, the portfolio manager may execute transactions for another account that may adversely impact the value of securities held by one or more of the Funds. However, Gateway believes that these risks are mitigated by the fact that accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions
to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and similar factors. In addition, Gateway has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.
Item 8 (a)(3). FUND MANAGER COMPENSATION
Messrs. Rogers and Toft are compensated for their services by Gateway. Their compensation consists of a fixed salary, incentive compensation related to the financial performance of Gateway (but not based on the investment performance of any of the Funds or any other managed account, either absolutely or in relation to any benchmark), and a retirement plan. The incentive compensation component is anticipated to be larger than the base salary component. Mr. Rogers’ employment agreement has an initial term ending December 31, 2012 and Mr. Toft’s employment agreement has an initial term ending December 31, 2010. Each of the employment agreements provides for automatic renewals for successive one-year periods and, among other things, a specified base salary and certain undertakings not to compete with the Adviser or solicit its clients. For Mr. Rogers, those undertakings will expire the later of eight years from the date of the sale of assets of Gateway’s predecessor to Gateway (the “Gateway Transaction”) or three years from the termination of Mr. Rogers’ employment. For Mr. Toft, the non-competition and non solicitation undertakings will expire the later of three years from the date of the Gateway Transaction, one year from the termination of employment, or one year after the period during which severance payments are made pursuant to the agreement. The profit sharing plan, applicable to Messrs. Rogers and Toft, provides for both a long-term incentive pool and a short-term incentive pool, the sizes of which will be determined based on profitability of Gateway.
Item 8 (a)(4). OWNERSHIP OF JLA SECURITIES AS OF DECEMBER 31, 2009
Name of Portfolio Manager |
| Dollar range of equity securities beneficially owned |
| |
J. Patrick Rogers |
| $ | 0 |
|
Kenneth Toft |
| $ | 0 |
|
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
|
|
| (b) |
| (c) |
| (d)* |
| |
|
| (a) |
| AVERAGE |
| TOTAL NUMBER OF SHARES |
| MAXIMUM NUMBER (OR |
| |
|
| TOTAL NUMBER OF |
| PRICE |
| (OR UNITS) PURCHASED AS |
| APPROXIMATE DOLLAR VALUE) OF |
| |
|
| SHARES (OR |
| PAID PER |
| PART OF PUBLICLY |
| SHARES (OR UNITS) THAT MAY YET |
| |
|
| UNITS) |
| SHARE (OR |
| ANNOUNCED PLANS OR |
| BE PURCHASED UNDER THE PLANS OR |
| |
Period* |
| PURCHASED |
| UNIT) |
| PROGRAMS |
| PROGRAMS |
| |
|
|
|
|
|
|
|
|
|
| |
JANUARY 1-31, 2009 |
| 0 |
|
|
| 0 |
| 2,483,500 |
| |
|
|
|
|
|
|
|
|
|
| |
FEBRUARY 1-28, 2009 |
| 46,600 |
| $ | 9.45 |
| 46,600 |
| 2,436,900 |
|
|
|
|
|
|
|
|
|
|
| |
MARCH 1-31, 2009 |
| 52,400 |
| $ | 8.60 |
| 52,400 |
| 2,384,500 |
|
|
|
|
|
|
|
|
|
|
| |
APRIL 1-30, 2009 |
| 0 |
|
|
| 0 |
| 2,384,500 |
| |
|
|
|
|
|
|
|
|
|
| |
MAY 1-31, 2009 |
| 16,700 |
| $ | 10.58 |
| 16,700 |
| 2,367,800 |
|
|
|
|
|
|
|
|
|
|
| |
JUNE 1-30, 2009 |
| 24,750 |
| $ | 10.74 |
| 24,750 |
| 2,343,050 |
|
|
|
|
|
|
|
|
|
|
| |
JULY 1-31, 2009 |
| 1,100 |
| $ | 10.82 |
| 1,100 |
| 2,341,950 |
|
|
|
|
|
|
|
|
|
|
| |
AUGUST 1-31, 2009 |
| 0 |
|
|
| 0 |
| 2,343,050 |
| |
|
|
|
|
|
|
|
|
|
| |
SEPTEMBER 1-30, 2009 |
| 0 |
|
|
| 0 |
| 2,343,050 |
| |
|
|
|
|
|
|
|
|
|
| |
OCTOBER 1-31, 2009 |
| 0 |
|
|
| 0 |
| 2,585,000 |
| |
|
|
|
|
|
|
|
|
|
| |
NOVEMBER 1-30, 2009 |
| 0 |
|
|
| 0 |
| 2,585,000 |
| |
|
|
|
|
|
|
|
|
|
| |
DECEMBER 1-31, 2009 |
| 0 |
|
|
| 0 |
| 2,585,000 |
| |
|
|
|
|
|
|
|
|
|
| |
TOTAL |
| 141,550 |
|
|
|
|
|
|
|
* The registrant’s repurchase program, which authorized the repurchase of 2,610,000 shares, was announced August 7, 2008. On October 3, 2009, the program was reauthorized for a maximum repurchase amount of 2,585,000 shares. Any repurchases made by the registrant pursuant to the program were made through open-market transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
|
|
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(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/CEF/Info/Shareholder/ and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then 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: 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.
(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 registrant specifically incorporates it by reference. 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 Equity Premium Advantage Fund
By (Signature and Title) | /s/ Kevin J. McCarthy |
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| Kevin J. McCarthy |
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| Vice President and Secretary |
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Date: March 10, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Gifford R. Zimmerman |
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| Gifford R. Zimmerman |
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| Chief Administrative Officer |
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| (principal executive officer) |
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Date: March 10, 2010
By (Signature and Title) | /s/ Stephen D. Foy |
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| Stephen D. Foy |
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| Vice President and Controller |
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| (principal financial officer) |
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Date: March 10, 2010