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 333 West Wacker Drive Chicago, IL 60606 | ||||||
(Address of principal executive offices) (Zip code) | ||||||
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Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 | ||||||
(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: | June 30, 2012 |
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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
Seeks Attractive Quarterly Distributions from an Integrated Index Option and Equity Strategy
Semi-Annual Report
June 30, 2012
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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Table of Contents
Chairman's Letter to Shareholders | 4 | ||||||
Portfolio Managers' Comments | 5 | ||||||
Share Distribution and Price Information | 8 | ||||||
Performance Overviews | 11 | ||||||
Shareholder Meeting Report | 15 | ||||||
Portfolios of Investments | 16 | ||||||
Statement of Assets & Liabilities | 48 | ||||||
Statement of Operations | 49 | ||||||
Statement of Changes in Net Assets | 50 | ||||||
Financial Highlights | 52 | ||||||
Notes to Financial Statements | 54 | ||||||
Annual Investment Management Agreement Approval Process | 66 | ||||||
Reinvest Automatically, Easily and Conveniently | 75 | ||||||
Glossary of Terms Used in this Report | 77 | ||||||
Additional Fund Information | 79 | ||||||
Chairman's
Letter to Shareholders
Dear Shareholders,
Investors have many reasons to remain cautious. The challenges in the Euro area are casting a shadow over global economies and financial markets. The political support for addressing fiscal issues is eroding as the economic and social impacts become more visible. At the same time, member nations appear unwilling to provide adequate financial support or to surrender sufficient sovereignty to strengthen the banks or unify the Euro area financial system. The gains made in reducing deficits, and the hard-won progress on winning popular acceptance of the need for economic austerity, are at risk. To their credit, European political leaders press on to find compromise solutions, but there is increasing concern that time will begin to run out.
In the U.S., strong corporate earnings have enabled the equity markets to withstand much of the downward pressures coming from weakening job creation, slower economic growth and political uncertainty. The Fed remains committed to low interest rates but has refrained from predicting another program of quantitative easing unless economic growth were to weaken significantly or the threat of recession appears on the horizon. Pre-election maneuvering has added to the already highly partisan atmosphere in the Congress. The end of the Bush-era tax cuts and implementation of the spending restrictions of the Budget Control Act of 2011, both scheduled to take place at year-end, loom closer.
During the last year, U.S. based investors have experienced a sharp decline and a strong recovery in the equity markets. The experienced investment teams at Nuveen keep their eye on a longer time horizon and use their practiced investment disciplines to negotiate through market peaks and valleys to achieve long-term goals for investors. Experienced professionals pursue investments that will weather short-term volatility and at the same time, seek opportunities that are created by markets that overreact to negative developments. Monitoring this process is an important consideration for the Fund Board as it oversees your Nuveen Fund on your behalf.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
August 23, 2012
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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. He has been President and a Director of Gateway since 1995 and is the firm's Chief Executive Officer. 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 their management strategies and the performance of the Funds for the six-months ended June 30, 2012.
What key strategies were used to manage the Funds during this reporting period?
Each Fund invests in an equity portfolio and writes (sells) index call options against all or a portion of the notional value of its stock portfolio. The premium generated by the index call options is intended to supplement the dividend yield on the underlying stock portfolio to support each Fund's distribution policy and provides the potential for growth in value in rising markets and/or risk mitigation in the event of market decline. 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 S&P 500® 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® Index and NASDAQ -100 Index. JPZ, JSN and JLA actively write (sell) listed index call options against their entire stock portfolios. JPG differs in that its index option hedging activity is applied to 80% of the value of the equity portfolio.
The writing of call options on a broad equity index, while investing in a portfolio of equi- ties, has the potential to enhance returns while exposing the Funds to less risk. Those portions of the Funds subject to the overwrite have their upside potential capped at the amount of premium received for the option. The down-side is buffered by the amount of the cash flow premium received. In flat or declining markets, the option premium can enhance total returns relative to the comparative index. In rising markets, the options can hurt the Funds' total return relative to their comparative index. The reporting period
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Past performance is not predictive of 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 Performance Overview page for your Fund in this report.
* Six-month returns are cumulative; all other returns are annualized.
** Since inception returns for JPZ and its comparative index are from 10/26/04; since inception returns for JSN and its comparative index are from 1/26/05; since inception returns for JLA and its comparative index are from 5/25/05; since inception returns for JPG and its comparative index are from 11/22/05.
*** Refer to Glossary of Terms Used in this Report for definitions. Indexes are not available for direct investment.
was marked by an essentially flat market, with high volatility. This was one factor in the underperformance of each Fund during the period.
How did the Funds perform over this six-month reporting period?
The performance of the Funds, as well as for comparative indexes, is presented in the accompanying table.
Annual Total Returns on Net Asset Value*
For periods ended 6/30/12
Fund | 6-Month | 1-Year | 5-Year | Since Inception** | |||||||||||||||
JPZ | 6.79 | % | 7.66 | % | 2.54 | % | 4.48 | % | |||||||||||
S&P 500® Index*** | 9.49 | % | 5.45 | % | 0.22 | % | 4.83 | % | |||||||||||
JSN | 6.03 | % | 6.95 | % | 2.74 | % | 4.56 | % | |||||||||||
Comparative Index*** | 10.82 | % | 7.22 | % | 1.76 | % | 5.10 | % | |||||||||||
JLA | 6.43 | % | 8.84 | % | 3.35 | % | 4.73 | % | |||||||||||
Comparative Index*** | 12.16 | % | 8.99 | % | 3.28 | % | 6.01 | % | |||||||||||
JPG | 6.80 | % | 7.19 | % | 1.69 | % | 3.90 | % | |||||||||||
S&P 500® Index*** | 9.49 | % | 5.45 | % | 0.22 | % | 3.32 | % |
For the six-month period ended June 30, 2012, the Funds lagged their respective comparative unhedged equity indexes. In the first quarter of 2012, an unusually strong quarter for the comparative indexes, the Funds performed as would be expected given the premium available from their call selling programs. As sellers of index call options, the Funds sell upside exposure to call buyers in return for option premium. As such, in a sharply rising market, call sellers tend to forego full participation in strong up-market moves. In the second quarter, when the comparative indexes declined, similar premium capture allowed each Fund to show a positive return. While the Funds performed in line with expectations and produced positive returns in both quarters, and with less volatility than the comparative indexes, the performance gain in the second quarter was not as large as the shortfall in the first quarter.
Throughout the period, the Funds' management team was able to benefit from the spikes in volatility that occurred by closing out near term (generally out-of-the-money) index option contracts and rewriting (rolling) closer-to-the-money longer-term contracts. A more conservative approach to adjusting strikes, lagging the more extreme market movements, benefited performance as the Funds suffered less from the whipsaws, where a security's price heads in one direction, but then is followed quickly by a movement in the opposite direction, which occurred during the choppy market.
Since the Funds follow a fairly stable investment discipline, market factors were the primary constraints on performance. In the first quarter, although option premium levels generally adhered to their long-term averages, the levels were down from the fourth quarter of 2011. During the second quarter, the primary constraint was the equity market sell-off during May 2012. Moreover, the recovery in June, occurring after a steep market decline, was problematic for index option call selling strategies. Once calls are written
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and the market rallies, the call strikes constrain upside market participation. These factors contributed to the Funds' six-month underperformance versus the market indexes.
RISK CONSIDERATIONS
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. The following risks are listed in order of priority.
Investment and Market Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the corporate securities owned by the Funds, which generally trade in the over-the-counter markets. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations. This is particularly true for funds employing a managed distribution program.
Common Stock Risk. Common stocks returns often have experienced significant volatility.
Call Option Risk. The value of call options sold (written) by the Funds will fluctuate. The Funds may not participate in any appreciation of its equity portfolio as fully as it would if the Funds did not sell call options. In addition, the Funds will continue to bear the risk of declines in the value of the equity portfolio.
Derivatives Strategy Risk. Derivative securities, such as calls, puts, warrants, swaps and forwards, carry risks different from, and possibly greater than, the risks associated with the underlying investments.
Index Call Option Risk. Because index options are settled in cash, sellers of index call options, such as the Funds, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities.
Reinvestment Risk. If market interest rates decline, income earned from the Fund's portfolio may be reinvested at rates below that of the original bond that generated the income.
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Share Distribution and
Price Information
Distribution Information
The following information regarding each Fund's distributions is current as of June 30, 2012, and likely will vary over time based on the Fund's investment activities and portfolio investment value changes.
During the six-month reporting period, all funds maintained steady quarterly distributions. Some of the important factors affecting the amount and composition of 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.
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8
• 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 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 estimated information regarding each Fund's distributions and total return performance for the six months ended June 30, 2012. This information is provided on a tax basis rather than a generally accepted accounting principles (GAAP) basis. This information is intended to help you better understand whether the Funds' returns for the specified time period were sufficient to meet each Fund's distributions.
As of 6/30/12 | JPZ | JSN | JLA | JPG | |||||||||||||||
Inception date | 10/26/04 | 1/26/05 | 5/25/05 | 11/22/05 | |||||||||||||||
Six months ended June 30, 2012: | |||||||||||||||||||
Per share distribution: | |||||||||||||||||||
From net investment income | $ | 0.11 | $ | 0.08 | $ | 0.05 | $ | 0.11 | |||||||||||
From realized capital gains | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
Return of capital | 0.43 | 0.48 | 0.52 | 0.45 | |||||||||||||||
Total per share distribution | $ | 0.54 | $ | 0.56 | $ | 0.57 | $ | 0.56 | |||||||||||
Annualized distribution rate on NAV | 8.17 | % | 8.52 | % | 8.44 | % | 7.80 | % | |||||||||||
Average annual total returns: | |||||||||||||||||||
6-Month (Cumulative) on NAV | 6.79 | % | 6.03 | % | 6.43 | % | 6.80 | % | |||||||||||
1-Year on NAV | 7.66 | % | 6.95 | % | 8.84 | % | 7.19 | % | |||||||||||
5-Year on NAV | 2.54 | % | 2.74 | % | 3.35 | % | 1.69 | % | |||||||||||
Since inception on NAV | 4.48 | % | 4.56 | % | 4.73 | % | 3.90 | % |
Share Repurchases and Price Information
As of June 30, 2012, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired their outstanding shares as shown in the accompanying table.
Fund | Shares Repurchased and Retired | % of Outstanding Shares | |||||||||
JPZ | 455,176 | 1.2 | % | ||||||||
JSN | 545,900 | 0.8 | % | ||||||||
JLA | 430,716 | 1.7 | % | ||||||||
JPG | 371,763 | 2.3 | % |
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During the current reporting period, the Funds repurchased and retired their shares at a weighted average price and a weighted average discount per share as shown in the accompanying table.
Fund | Shares Repurchased and Retired | Weighted Average Price Per Share Repurchased and Retired | Weighted Average Discount Per Share Repurchased and Retired | ||||||||||||
JPZ | 12,600 | $ | 11.57 | 11.88 | % | ||||||||||
JSN | — | — | — | ||||||||||||
JLA | 43,477 | $ | 11.80 | 12.72 | % | ||||||||||
JPG | 1,800 | $ | 12.68 | 11.14 | % |
As of June 30, 2012, and during the six-month reporting period, the Funds' share prices were trading at (–) discounts relative to their NAVs as shown in the accompanying table.
Fund | 6/30/12 (–) Discount | Six-Month Average (–) Discount | |||||||||
JPZ | (-) 8.47% | (-) 10.42% | |||||||||
JSN | (-) 9.44% | (-) 9.56% | |||||||||
JLA | (-) 10.96% | (-) 11.35% | |||||||||
JPG | (-) 10.87% | (-) 10.81% |
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JPZ
Performance
OVERVIEW
Nuveen Equity Premium Income Fund
as of June 30, 2012
Fund Allocation (as a % of total net assets)3
2011-2012 Quarterly Distributions Per Share
Share Price Performance — Weekly Closing Price
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.
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.
3 Holdings are subject to change.
Fund Snapshot
Share Price | $ | 12.10 | |||||
Net Asset Value (NAV) | $ | 13.22 | |||||
Premium/(Discount) to NAV | -8.47 | % | |||||
Current Distribution Rate1 | 8.96 | % | |||||
Net Assets ($000) | $ | 508,416 |
Average Annual Total Returns
(Inception 10/26/04)
On Share Price | On NAV | ||||||||||
6-Month (Cumulative) | 13.15 | % | 6.79 | % | |||||||
1-Year | 6.80 | % | 7.66 | % | |||||||
5-Year | 2.03 | % | 2.54 | % | |||||||
Since Inception | 3.24 | % | 4.48 | % |
Portfolio Composition3
(as a % of total common stocks)
Oil, Gas, & Consumable Fuels | 9.2 | % | |||||
Pharmaceuticals | 7.5 | % | |||||
Computers & Peripherals | 5.3 | % | |||||
IT Services | 4.1 | % | |||||
Diversified Telecommunication Services | 3.9 | % | |||||
Software | 3.7 | % | |||||
Diversified Financial Services | 3.3 | % | |||||
Beverages | 3.2 | % | |||||
Industrial Conglomerates | 2.8 | % | |||||
Media | 2.8 | % | |||||
Commercial Banks | 2.8 | % | |||||
Aerospace & Defense | 2.6 | % | |||||
Real Estate Investment Trust | 2.6 | % | |||||
Machinery | 2.5 | % | |||||
Semiconductors & Equipment | 2.5 | % | |||||
Tobacco | 2.4 | % | |||||
Specialty Retail | 2.4 | % | |||||
Chemicals | 2.2 | % | |||||
Health Care Providers & Services | 2.2 | % | |||||
Internet Software & Services | 2.1 | % | |||||
Household Products | 1.9 | % | |||||
Communications Equipment | 1.9 | % | |||||
Multi-Utilities | 1.9 | % | |||||
Food & Staples Retailing | 1.9 | % | |||||
Energy Equipment & Services | 1.9 | % | |||||
Electric Utilities | 1.8 | % | |||||
Other | 18.6 | % |
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Fund Snapshot
Share Price | $ | 11.90 | |||||
Net Asset Value (NAV) | $ | 13.14 | |||||
Premium/(Discount) to NAV | -9.44 | % | |||||
Current Distribution Rate1 | 9.38 | % | |||||
Net Assets ($000) | $ | 873,908 |
Average Annual Total Returns
(Inception 1/26/05)
On Share Price | On NAV | ||||||||||
6-Month (Cumulative) | 9.09 | % | 6.03 | % | |||||||
1-Year | 5.52 | % | 6.95 | % | |||||||
5-Year | 2.02 | % | 2.74 | % | |||||||
Since Inception | 3.14 | % | 4.56 | % |
Portfolio Composition3
(as a % of total common stocks)
Computers & Peripherals | 9.8 | % | |||||
Software | 7.2 | % | |||||
Oil, Gas & Consumable Fuels | 6.7 | % | |||||
Pharmaceuticals | 6.1 | % | |||||
Internet Software & Services | 4.5 | % | |||||
Media | 3.7 | % | |||||
IT Services | 3.7 | % | |||||
Semiconductors & Equipment | 3.5 | % | |||||
Communications Equipment | 3.3 | % | |||||
Beverages | 2.6 | % | |||||
Diversified Telecommunication Services | 2.4 | % | |||||
Diversified Financial Services | 2.3 | % | |||||
Food & Staples Retailing | 2.2 | % | |||||
Specialty Retail | 2.1 | % | |||||
Internet & Catalog Retail | 2.0 | % | |||||
Health Care Providers & Services | 2.0 | % | |||||
Machinery | 2.0 | % | |||||
Commercial Banks | 1.9 | % | |||||
Insurance | 1.9 | % | |||||
Tobacco | 1.8 | % | |||||
Biotechnology | 1.8 | % | |||||
Real Estate Investment Trust | 1.7 | % | |||||
Chemicals | 1.7 | % | |||||
Electric Utilities | 1.7 | % | |||||
Hotels, Restaurants & Leisure | 1.6 | % | |||||
Other | 19.8 | % |
JSN
Performance
OVERVIEW
Nuveen Equity Premium Opportunity Fund
as of June 30, 2012
Fund Allocation (as a % of total net assets)3
2011-2012 Quarterly Distributions Per Share
Share Price Performance — Weekly Closing Price
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.
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.
3 Holdings are subject to change.
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JLA
Performance
OVERVIEW
Nuveen Equity Premium Advantage Fund
as of June 30, 2012
Fund Allocation (as a % of total net assets)3
2011-2012 Quarterly Distributions Per Share
Share Price Performance — Weekly Closing Price
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.
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.
3 Holdings are subject to change.
Fund Snapshot
Share Price | $ | 12.02 | |||||
Net Asset Value (NAV) | $ | 13.50 | |||||
Premium/(Discount) to NAV | -10.96 | % | |||||
Current Distribution Rate1 | 9.45 | % | |||||
Net Assets ($000) | $ | 347,189 |
Average Annual Total Returns
(Inception 5/25/05)
On Share Price | On NAV | ||||||||||
6-Month (Cumulative) | 9.89 | % | 6.43 | % | |||||||
1-Year | 5.59 | % | 8.84 | % | |||||||
5-Year | 1.93 | % | 3.35 | % | |||||||
Since Inception | 3.05 | % | 4.73 | % |
Portfolio Composition3
(as a % of total common stocks)
Computers & Peripherals | 12.7 | % | |||||
Software | 11.1 | % | |||||
Internet Software & Services | 6.5 | % | |||||
Semiconductors & Equipment | 5.9 | % | |||||
Internet & Catalog Retail | 5.4 | % | |||||
Oil, Gas & Consumable Fuels | 4.7 | % | |||||
Pharmaceuticals | 4.6 | % | |||||
Communications Equipment | 4.3 | % | |||||
Media | 4.2 | % | |||||
IT Services | 3.2 | % | |||||
Biotechnology | 2.6 | % | |||||
Specialty Retail | 2.2 | % | |||||
Hotels, Restaurants & Leisure | 1.9 | % | |||||
Diversified Telecommunication Services | 1.8 | % | |||||
Electric Utilities | 1.7 | % | |||||
Food & Staples Retailing | 1.7 | % | |||||
Electrical Equipment | 1.7 | % | |||||
Machinery | 1.6 | % | |||||
Commercial Banks | 1.6 | % | |||||
Health Care Providers & Services | 1.5 | % | |||||
Other | 19.1 | % |
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Fund Snapshot
Share Price | $ | 12.79 | |||||
Net Asset Value (NAV) | $ | 14.35 | |||||
Premium/(Discount) to NAV | -10.87 | % | |||||
Current Distribution Rate1 | 8.76 | % | |||||
Net Assets ($000) | $ | 231,981 |
Average Annual Total Returns
(Inception 11/22/05)
On Share Price | On NAV | ||||||||||
6-Month (Cumulative) | 10.56 | % | 6.80 | % | |||||||
1-Year | 5.36 | % | 7.19 | % | |||||||
5-Year | 1.15 | % | 1.69 | % | |||||||
Since Inception | 2.15 | % | 3.90 | % |
Portfolio Composition3
(as a % of total common stocks)
Oil, Gas & Consumable Fuels | 9.6 | % | |||||
Pharmaceuticals | 7.7 | % | |||||
Computers & Peripherals | 5.4 | % | |||||
Software | 4.0 | % | |||||
Diversified Telecommunication Services | 3.9 | % | |||||
IT Services | 3.8 | % | |||||
Diversified Financial Services | 3.5 | % | |||||
Insurance | 3.1 | % | |||||
Commercial Banks | 2.9 | % | |||||
Specialty Retail | 2.9 | % | |||||
Aerospace & Defense | 2.7 | % | |||||
Machinery | 2.5 | % | |||||
Semiconductors & Equipment | 2.5 | % | |||||
Chemicals | 2.4 | % | |||||
Real Estate Investment Trust | 2.4 | % | |||||
Beverages | 2.4 | % | |||||
Tobacco | 2.4 | % | |||||
Health Care Providers & Services | 2.3 | % | |||||
Internet Software & Services | 2.3 | % | |||||
Media | 2.2 | % | |||||
Multi-Utilities | 2.2 | % | |||||
Energy Equipment & Services | 2.1 | % | |||||
Food & Staples Retailing | 2.1 | % | |||||
Communications Equipment | 2.1 | % | |||||
Household Products | 1.9 | % | |||||
Other | 18.7 | % |
JPG
Performance
OVERVIEW
Nuveen Equity Premium and Growth Fund
as of June 30, 2012
Fund Allocation (as a % of total net assets)3
2011-2012 Quarterly Distributions Per Share
Share Price Performance — Weekly Closing Price
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.
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.
3 Holdings are subject to change.
Nuveen Investments
14
JPZ
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on March 30, 2012; at this meeting the shareholders were asked to vote on the election of Board Members.
JPZ | JSN | JLA | JPG | ||||||||||||||||
Common Shares | Common Shares | Common Shares | Common Shares | ||||||||||||||||
Approval of the Board Members was reached as follows: | |||||||||||||||||||
Robert P. Bremner | |||||||||||||||||||
For | 32,125,320 | 56,586,035 | 22,316,521 | 13,834,116 | |||||||||||||||
Withhold | 631,374 | 949,515 | 490,014 | 247,325 | |||||||||||||||
Total | 32,756,694 | 57,535,550 | 22,806,535 | 14,081,441 | |||||||||||||||
Jack B. Evans | |||||||||||||||||||
For | 32,128,993 | 56,513,885 | 22,325,396 | 13,832,379 | |||||||||||||||
Withhold | 627,701 | 1,021,665 | 481,139 | 249,062 | |||||||||||||||
Total | 32,756,694 | 57,535,550 | 22,806,535 | 14,081,441 | |||||||||||||||
William J. Schneider | |||||||||||||||||||
For | 32,111,757 | 56,513,601 | 22,308,682 | 13,824,221 | |||||||||||||||
Withhold | 644,937 | 1,021,949 | 497,853 | 257,220 | |||||||||||||||
Total | 32,756,694 | 57,535,550 | 22,806,535 | 14,081,441 |
Nuveen Investments
15
JPZ
Nuveen Equity Premium Income Fund
Portfolio of Investments
June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 99.5% (5) | |||||||||||
Aerospace & Defense – 2.6% | |||||||||||
44,366 | Boeing Company | $ | 3,296,394 | ||||||||
65,577 | Honeywell International Inc. | 3,661,820 | |||||||||
32,905 | Raytheon Company | 1,862,094 | |||||||||
54,843 | United Technologies Corporation | 4,142,292 | |||||||||
Total Aerospace & Defense | 12,962,600 | ||||||||||
Air Freight & Logistics – 1.0% | |||||||||||
62,893 | United Parcel Service, Inc., Class B | 4,953,453 | |||||||||
Airlines – 0.0% | |||||||||||
3,957 | United Continental Holdings Inc., (2) | 96,274 | |||||||||
Auto Components – 0.1% | |||||||||||
30,296 | Cooper Tire & Rubber | 531,392 | |||||||||
Automobiles – 0.7% | |||||||||||
195,811 | Ford Motor Company | 1,877,827 | |||||||||
32,461 | Harley-Davidson, Inc. | 1,484,442 | |||||||||
Total Automobiles | 3,362,269 | ||||||||||
Beverages – 3.1% | |||||||||||
109,041 | Coca-Cola Company | 8,525,916 | |||||||||
14,852 | Monster Beverage Corporation, (2) | 1,057,462 | |||||||||
89,906 | PepsiCo, Inc. | 6,352,758 | |||||||||
Total Beverages | 15,936,136 | ||||||||||
Biotechnology – 1.1% | |||||||||||
41,504 | Amgen Inc. | 3,031,452 | |||||||||
18,099 | Celgene Corporation, (2) | 1,161,232 | |||||||||
23,687 | Gilead Sciences, Inc., (2) | 1,214,669 | |||||||||
Total Biotechnology | 5,407,353 | ||||||||||
Building Products – 0.1% | |||||||||||
42,748 | Masco Corporation | 592,915 | |||||||||
Capital Markets – 1.6% | |||||||||||
109,476 | Charles Schwab Corporation | 1,415,525 | |||||||||
22,272 | Goldman Sachs Group, Inc. | 2,134,994 | |||||||||
48,534 | Jefferies Group, Inc. | 630,457 | |||||||||
40,593 | Legg Mason, Inc. | 1,070,437 | |||||||||
107,319 | Morgan Stanley | 1,565,784 | |||||||||
38,635 | Waddell & Reed Financial, Inc., Class A | 1,169,868 | |||||||||
Total Capital Markets | 7,987,065 |
Nuveen Investments
16
Shares | Description (1) | Value | |||||||||
Chemicals – 2.2% | |||||||||||
53,348 | Dow Chemical Company | $ | 1,680,462 | ||||||||
54,215 | E.I. Du Pont de Nemours and Company | 2,741,653 | |||||||||
34,457 | Eastman Chemical Company | 1,735,599 | |||||||||
25,853 | Monsanto Company | 2,140,111 | |||||||||
53,293 | Olin Corporation | 1,113,291 | |||||||||
60,403 | RPM International, Inc. | 1,642,962 | |||||||||
Total Chemicals | 11,054,078 | ||||||||||
Commercial Banks – 2.8% | |||||||||||
33,724 | Comerica Incorporated | 1,035,664 | |||||||||
16,998 | HSBC Holdings PLC, Sponsored ADR | 750,122 | |||||||||
10,984 | PNC Financial Services Group, Inc. | 671,232 | |||||||||
120,668 | U.S. Bancorp | 3,880,683 | |||||||||
232,364 | Wells Fargo & Company | 7,770,252 | |||||||||
Total Commercial Banks | 14,107,953 | ||||||||||
Commercial Services & Supplies – 0.7% | |||||||||||
3,177 | Avery Dennison Corporation | 86,859 | |||||||||
56,149 | Deluxe Corporation | 1,400,356 | |||||||||
40,642 | Pitney Bowes Inc. | 608,411 | |||||||||
16,031 | R.R. Donnelley & Sons Company | 188,685 | |||||||||
35,497 | Waste Management, Inc. | 1,185,600 | |||||||||
Total Commercial Services & Supplies | 3,469,911 | ||||||||||
Communications Equipment – 1.9% | |||||||||||
14,156 | ADTRAN, Inc. | 427,370 | |||||||||
3,408 | Ciena Corporation, (2) | 55,789 | |||||||||
230,385 | Cisco Systems, Inc. | 3,955,710 | |||||||||
11,034 | JDS Uniphase Corporation, (2) | 121,374 | |||||||||
25,703 | Motorola Solutions Inc. | 1,236,571 | |||||||||
71,809 | QUALCOMM, Inc. | 3,998,325 | |||||||||
Total Communications Equipment | 9,795,139 | ||||||||||
Computers & Peripherals – 5.3% | |||||||||||
38,524 | Apple, Inc., (2) | 22,498,016 | |||||||||
67,332 | Dell Inc., (2) | 842,997 | |||||||||
112,953 | EMC Corporation, (2) | 2,894,985 | |||||||||
29,315 | Hewlett-Packard Company | 589,525 | |||||||||
Total Computers & Peripherals | 26,825,523 | ||||||||||
Consumer Finance – 0.4% | |||||||||||
17,046 | American Express Company | 992,248 | |||||||||
32,690 | Discover Financial Services | 1,130,420 | |||||||||
Total Consumer Finance | 2,122,668 | ||||||||||
Containers & Packaging – 0.3% | |||||||||||
43,759 | Packaging Corp. of America | 1,235,754 | |||||||||
5,718 | Sonoco Products Company | 172,398 | |||||||||
Total Containers & Packaging | 1,408,152 | ||||||||||
Distributors – 0.3% | |||||||||||
29,044 | Genuine Parts Company | 1,749,901 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
7,623 | Apollo Group, Inc., Class A, (2) | 275,876 |
Nuveen Investments
17
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Diversified Financial Services – 3.3% | |||||||||||
414,679 | Bank of America Corporation | $ | 3,392,074 | ||||||||
108,986 | Citigroup Inc. | 2,987,306 | |||||||||
6,790 | CME Group, Inc. | 1,820,467 | |||||||||
198,535 | JP Morgan Chase & Co. | 7,093,656 | |||||||||
47,644 | New York Stock Exchange Euronext | 1,218,734 | |||||||||
Total Diversified Financial Services | 16,512,237 | ||||||||||
Diversified Telecommunication Services – 3.8% | |||||||||||
306,134 | AT&T Inc. | 10,916,738 | |||||||||
29,237 | CenturyLink Inc. | 1,154,569 | |||||||||
250,097 | Frontier Communications Corporation | 957,872 | |||||||||
141,690 | Verizon Communications Inc. | 6,296,704 | |||||||||
18,198 | Windstream Corporation | 175,793 | |||||||||
Total Diversified Telecommunication Services | 19,501,676 | ||||||||||
Electric Utilities – 1.8% | |||||||||||
101,943 | Duke Energy Corporation | 2,350,806 | |||||||||
6,959 | Exelon Corporation | 261,798 | |||||||||
27,323 | Great Plains Energy Incorporated | 584,985 | |||||||||
27,698 | OGE Energy Corp. | 1,434,479 | |||||||||
80,800 | Pepco Holdings, Inc. | 1,581,256 | |||||||||
29,370 | Progress Energy, Inc. | 1,767,193 | |||||||||
27,732 | Southern Company | 1,283,992 | |||||||||
Total Electric Utilities | 9,264,509 | ||||||||||
Electrical Equipment – 0.6% | |||||||||||
49,909 | Emerson Electric Company | 2,324,761 | |||||||||
14,553 | Rockwell Automation, Inc. | 961,371 | |||||||||
Total Electrical Equipment | 3,286,132 | ||||||||||
Electronic Equipment & Instruments – 0.3% | |||||||||||
118,215 | Corning Incorporated | 1,528,520 | |||||||||
Energy Equipment & Services – 1.9% | |||||||||||
6,964 | Diamond Offshore Drilling, Inc. | 411,781 | |||||||||
18,452 | Ensco International PLC, Class A, Sponsored ADR | 866,690 | |||||||||
83,720 | Halliburton Company | 2,376,811 | |||||||||
16,059 | Patterson-UTI Energy, Inc. | 233,819 | |||||||||
73,781 | Schlumberger Limited | 4,789,125 | |||||||||
16,157 | Tidewater Inc. | 749,039 | |||||||||
Total Energy Equipment & Services | 9,427,265 | ||||||||||
Food & Staples Retailing – 1.9% | |||||||||||
79,319 | CVS Caremark Corporation | 3,706,577 | |||||||||
38,696 | SUPERVALU INC. | 200,445 | |||||||||
80,168 | Wal-Mart Stores, Inc. | 5,589,313 | |||||||||
Total Food & Staples Retailing | 9,496,335 | ||||||||||
Food Products – 0.9% | |||||||||||
116,351 | Kraft Foods Inc., Class A | 4,493,476 | |||||||||
Gas Utilities – 1.0% | |||||||||||
36,141 | AGL Resources Inc. | 1,400,464 | |||||||||
25,536 | Atmos Energy Corporation | 895,548 | |||||||||
22,995 | National Fuel Gas Company | 1,080,305 | |||||||||
42,966 | ONEOK, Inc. | 1,817,891 | |||||||||
Total Gas Utilities | 5,194,208 |
Nuveen Investments
18
Shares | Description (1) | Value | |||||||||
Health Care Equipment & Supplies – 1.0% | |||||||||||
4,460 | Hologic Inc., (2) | $ | 80,458 | ||||||||
3,342 | Intuitive Surgical, Inc., (2) | 1,850,766 | |||||||||
78,706 | Medtronic, Inc. | 3,048,283 | |||||||||
Total Health Care Equipment & Supplies | 4,979,507 | ||||||||||
Health Care Providers & Services – 2.1% | |||||||||||
6,901 | Brookdale Senior Living Inc., (2) | 122,424 | |||||||||
15,450 | Coventry Health Care, Inc. | 491,156 | |||||||||
59,980 | Express Scripts, (2) | 3,348,683 | |||||||||
17,609 | HCA Holdings Inc. | 535,842 | |||||||||
1,116 | Henry Schein Inc., (2) | 87,595 | |||||||||
39,267 | Kindred Healthcare Inc., (2) | 385,995 | |||||||||
73,429 | UnitedHealth Group Incorporated | 4,295,597 | |||||||||
25,221 | Wellpoint Inc. | 1,608,848 | |||||||||
Total Health Care Providers & Services | 10,876,140 | ||||||||||
Health Care Technology – 0.0% | |||||||||||
114 | Cerner Corporation, (2) | 9,423 | |||||||||
Hotels, Restaurants & Leisure – 1.4% | |||||||||||
22,200 | Carnival Corporation | 760,794 | |||||||||
42,761 | International Game Technology | 673,486 | |||||||||
2,272 | Interval Leisure Group Inc. | 43,191 | |||||||||
63,999 | McDonald's Corporation | 5,665,831 | |||||||||
Total Hotels, Restaurants & Leisure | 7,143,302 | ||||||||||
Household Durables – 0.5% | |||||||||||
2,990 | Garmin Limited | 114,487 | |||||||||
64,653 | Newell Rubbermaid Inc. | 1,172,805 | |||||||||
13,864 | Tupperware Corporation | 759,193 | |||||||||
11,356 | Whirlpool Corporation | 694,533 | |||||||||
Total Household Durables | 2,741,018 | ||||||||||
Household Products – 1.9% | |||||||||||
15,477 | Colgate-Palmolive Company | 1,611,156 | |||||||||
12,645 | Kimberly-Clark Corporation | 1,059,272 | |||||||||
117,090 | Procter & Gamble Company | 7,171,763 | |||||||||
Total Household Products | 9,842,191 | ||||||||||
Industrial Conglomerates – 2.8% | |||||||||||
42,942 | 3M Co. | 3,847,603 | |||||||||
505,901 | General Electric Company | 10,542,977 | |||||||||
57 | Siemens AG, Sponsored ADR | 4,792 | |||||||||
Total Industrial Conglomerates | 14,395,372 | ||||||||||
Insurance – 1.8% | |||||||||||
47,749 | Allstate Corporation | 1,675,512 | |||||||||
8,871 | Arthur J. Gallagher & Co. | 311,106 | |||||||||
36,694 | Fidelity National Title Group Inc., Class A | 706,726 | |||||||||
26,683 | Hartford Financial Services Group, Inc. | 470,421 | |||||||||
13,665 | Kemper Corporation | 420,199 | |||||||||
63,881 | Lincoln National Corporation | 1,397,077 | |||||||||
63,867 | Marsh & McLennan Companies, Inc. | 2,058,433 | |||||||||
35,702 | Travelers Companies, Inc. | 2,279,216 | |||||||||
Total Insurance | 9,318,690 |
Nuveen Investments
19
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Internet & Catalog Retail – 1.1% | |||||||||||
15,029 | Amazon.com, Inc., (2) | $ | 3,431,872 | ||||||||
3,103 | HSN, Inc. | 125,206 | |||||||||
2,786 | Priceline.com Incorporated, (2) | 1,851,353 | |||||||||
Total Internet & Catalog Retail | 5,408,431 | ||||||||||
Internet Software & Services – 2.1% | |||||||||||
10,937 | Akamai Technologies, Inc., (2) | 347,250 | |||||||||
52,022 | eBay Inc., (2) | 2,185,444 | |||||||||
10,446 | Google Inc., Class A, (2) | 6,059,411 | |||||||||
44,605 | United Online, Inc. | 188,233 | |||||||||
5,616 | ValueClick, Inc., (2) | 92,046 | |||||||||
10,122 | VeriSign, Inc., (2) | 441,016 | |||||||||
72,091 | Yahoo! Inc., (2) | 1,141,201 | |||||||||
Total Internet Software & Services | 10,454,601 | ||||||||||
IT Services – 4.1% | |||||||||||
34,496 | Automatic Data Processing, Inc. | 1,920,047 | |||||||||
17,199 | Cognizant Technology Solutions Corporation, Class A, (2) | 1,031,940 | |||||||||
32,696 | Fidelity National Information Services | 1,114,280 | |||||||||
54,848 | International Business Machines Corporation (IBM) | 10,727,172 | |||||||||
3,197 | Lender Processing Services Inc. | 80,820 | |||||||||
5,940 | MasterCard, Inc. | 2,554,853 | |||||||||
42,671 | Paychex, Inc. | 1,340,296 | |||||||||
17,159 | Visa Inc., Class A | 2,121,367 | |||||||||
Total IT Services | 20,890,775 | ||||||||||
Leisure Equipment & Products – 0.3% | |||||||||||
19,609 | Polaris Industries Inc. | 1,401,651 | |||||||||
Machinery – 2.5% | |||||||||||
28,606 | Caterpillar Inc. | 2,428,935 | |||||||||
17,395 | Cummins Inc. | 1,685,749 | |||||||||
20,434 | Deere & Company | 1,652,498 | |||||||||
13,600 | Graco Inc. | 626,688 | |||||||||
13,107 | Ingersoll Rand Company Limited, Class A | 552,853 | |||||||||
16,893 | Parker Hannifin Corporation | 1,298,734 | |||||||||
11,767 | Snap-on Incorporated | 732,496 | |||||||||
22,597 | SPX Corporation | 1,476,036 | |||||||||
27,348 | Stanley Black & Decker Inc. | 1,760,117 | |||||||||
12,000 | Timken Company | 549,480 | |||||||||
Total Machinery | 12,763,586 | ||||||||||
Media – 2.8% | |||||||||||
56,665 | CBS Corporation, Class B | 1,857,479 | |||||||||
117,549 | Comcast Corporation, Class A | 3,758,042 | |||||||||
39,613 | New York Times, Class A, (2) | 308,981 | |||||||||
35,396 | Omnicom Group, Inc. | 1,720,246 | |||||||||
114,479 | Regal Entertainment Group, Class A | 1,575,231 | |||||||||
103,897 | Walt Disney Company | 5,039,005 | |||||||||
Total Media | 14,258,984 | ||||||||||
Metals & Mining – 0.9% | |||||||||||
88,284 | Alcoa Inc. | 772,485 | |||||||||
44,474 | Freeport-McMoRan Copper & Gold, Inc. | 1,515,229 | |||||||||
6,726 | Newmont Mining Corporation | 326,278 | |||||||||
28,148 | Nucor Corporation | 1,066,809 | |||||||||
32,749 | Southern Copper Corporation | 1,031,921 | |||||||||
Total Metals & Mining | 4,712,722 |
Nuveen Investments
20
Shares | Description (1) | Value | |||||||||
Multiline Retail – 1.0% | |||||||||||
20 | Dollar Tree Stores Inc., (2) | $ | 1,076 | ||||||||
4,000 | Family Dollar Stores, Inc. | 265,920 | |||||||||
36,680 | Macy's, Inc. | 1,259,958 | |||||||||
25,718 | Nordstrom, Inc. | 1,277,927 | |||||||||
8,076 | Sears Holding Corporation, (2) | 482,137 | |||||||||
34,401 | Target Corporation | 2,001,794 | |||||||||
Total Multiline Retail | 5,288,812 | ||||||||||
Multi-Utilities – 1.9% | |||||||||||
40,360 | Ameren Corporation | �� | 1,353,674 | ||||||||
25,585 | Consolidated Edison, Inc. | 1,591,131 | |||||||||
71,595 | Integrys Energy Group, Inc. | 4,071,608 | |||||||||
15,861 | Northwestern Corporation | 582,099 | |||||||||
60,504 | Public Service Enterprise Group Incorporated | 1,966,380 | |||||||||
Total Multi-Utilities | 9,564,892 | ||||||||||
Oil, Gas & Consumable Fuels – 9.2% | |||||||||||
9,051 | Cenovus Energy Inc. | 287,822 | |||||||||
94,802 | Chevron Corporation | 10,001,611 | |||||||||
77,146 | ConocoPhillips | 4,310,918 | |||||||||
39,168 | CONSOL Energy Inc. | 1,184,440 | |||||||||
22,718 | Continental Resources Inc., (2) | 1,513,473 | |||||||||
16,151 | EnCana Corporation | 336,425 | |||||||||
28,911 | EOG Resources, Inc. | 2,605,170 | |||||||||
220,293 | Exxon Mobil Corporation | 18,850,472 | |||||||||
48,380 | Occidental Petroleum Corporation | 4,149,553 | |||||||||
38,573 | Phillips 66 | 1,282,167 | |||||||||
4,626 | Total SA, Sponsored ADR | 207,939 | |||||||||
76,829 | Valero Energy Corporation | 1,855,420 | |||||||||
Total Oil, Gas & Consumable Fuels | 46,585,410 | ||||||||||
Pharmaceuticals – 7.4% | |||||||||||
91,791 | Abbott Laboratories | 5,917,766 | |||||||||
120,797 | Bristol-Myers Squibb Company | 4,342,652 | |||||||||
57,664 | Eli Lilly and Company | 2,474,362 | |||||||||
136,111 | Johnson & Johnson | 9,195,659 | |||||||||
165,408 | Merck & Company Inc. | 6,905,784 | |||||||||
384,228 | Pfizer Inc. | 8,837,244 | |||||||||
Total Pharmaceuticals | 37,673,467 | ||||||||||
Professional Services – 0.0% | |||||||||||
3,665 | Manpower Inc. | 134,322 | |||||||||
6,949 | Resources Connection, Inc. | 85,473 | |||||||||
Total Professional Services | 219,795 | ||||||||||
Real Estate Investment Trust – 2.6% | |||||||||||
111,810 | Annaly Capital Management Inc. | 1,876,172 | |||||||||
39,521 | Brandywine Realty Trust | 487,689 | |||||||||
44,183 | CapLease Inc. | 183,359 | |||||||||
25,456 | CommonWealth REIT | 486,719 | |||||||||
55,131 | CubeSmart | 643,379 | |||||||||
15,432 | Health Care REIT, Inc. | 899,686 | |||||||||
49,625 | Healthcare Realty Trust, Inc. | 1,183,060 | |||||||||
45,684 | Hospitality Properties Trust | 1,131,593 | |||||||||
88,469 | Lexington Corporate Properties Trust | 749,332 | |||||||||
27,077 | Liberty Property Trust | 997,517 | |||||||||
17,263 | Medical Properties Trust Inc. | 166,070 | |||||||||
28,311 | MFA Mortgage Investments, Inc. | 223,374 | |||||||||
26,716 | Senior Housing Properties Trust | 596,301 |
Nuveen Investments
21
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Real Estate Investment Trust (continued) | |||||||||||
11,215 | Sun Communities Inc. | $ | 496,152 | ||||||||
25,359 | Ventas Inc. | 1,600,660 | |||||||||
54,475 | Weyerhaeuser Company | 1,218,061 | |||||||||
Total Real Estate Investment Trust | 12,939,124 | ||||||||||
Road & Rail – 0.8% | |||||||||||
17,765 | Norfolk Southern Corporation | 1,274,994 | |||||||||
25,475 | Union Pacific Corporation | 3,039,422 | |||||||||
Total Road & Rail | 4,314,416 | ||||||||||
Semiconductors & Equipment – 2.4% | |||||||||||
25,275 | Analog Devices, Inc. | 952,109 | |||||||||
96,369 | Applied Materials, Inc. | 1,104,389 | |||||||||
21,444 | Broadcom Corporation, Class A | 724,807 | |||||||||
252,373 | Intel Corporation | 6,725,740 | |||||||||
12,846 | Intersil Holding Corporation, Class A | 136,810 | |||||||||
3,087 | Lam Research Corporation, (2) | 116,503 | |||||||||
24,776 | Microchip Technology Incorporated | 819,590 | |||||||||
27,856 | NVIDIA Corporation, (2) | 384,970 | |||||||||
51,579 | Texas Instruments Incorporated | 1,479,802 | |||||||||
Total Semiconductors & Equipment | 12,444,720 | ||||||||||
Software – 3.7% | |||||||||||
23,572 | Adobe Systems Incorporated, (2) | 763,026 | |||||||||
18,599 | Autodesk, Inc., (2) | 650,779 | |||||||||
349,236 | Microsoft Corporation | 10,683,129 | |||||||||
181,902 | Oracle Corporation | 5,402,489 | |||||||||
9,475 | Salesforce.com, Inc., (2) | 1,310,014 | |||||||||
Total Software | 18,809,437 | ||||||||||
Specialty Retail – 2.4% | |||||||||||
18,330 | Abercrombie & Fitch Co., Class A | 625,786 | |||||||||
41,497 | American Eagle Outfitters, Inc. | 818,736 | |||||||||
21,475 | Best Buy Co., Inc. | 450,116 | |||||||||
81,211 | Home Depot, Inc. | 4,303,371 | |||||||||
36,817 | Limited Brands, Inc. | 1,565,827 | |||||||||
74,638 | Lowe's Companies, Inc. | 2,122,705 | |||||||||
364 | Orchard Supply Hardware Stores Corporation, (2) | 6,053 | |||||||||
472 | Ross Stores, Inc. | 29,486 | |||||||||
13,465 | Tiffany & Co. | 712,972 | |||||||||
30,741 | TJX Companies, Inc. | 1,319,711 | |||||||||
Total Specialty Retail | 11,954,763 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.4% | |||||||||||
7,159 | Cherokee Inc. | 99,725 | |||||||||
15,061 | VF Corporation | 2,009,890 | |||||||||
Total Textiles, Apparel & Luxury Goods | 2,109,615 | ||||||||||
Thrifts & Mortgage Finance – 0.2% | |||||||||||
36,703 | Hudson City Bancorp, Inc. | 233,798 | |||||||||
60,610 | New York Community Bancorp Inc. | 759,443 | |||||||||
Total Thrifts & Mortgage Finance | 993,241 |
Nuveen Investments
22
Shares | Description (1) | Value | |||||||||
Tobacco – 2.4% | |||||||||||
110,378 | Altria Group, Inc. | $ | 3,813,560 | ||||||||
81,518 | Philip Morris International | 7,113,261 | |||||||||
21,468 | Reynolds American Inc. | 963,269 | |||||||||
4,866 | Vector Group Ltd. | 82,819 | |||||||||
Total Tobacco | 11,972,909 | ||||||||||
Wireless Telecommunication Services – 0.0% | |||||||||||
5,500 | USA Mobility Inc. | 70,728 | |||||||||
Total Common Stocks (cost $395,302,622) | 505,480,738 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 5.6% | |||||||||||||||||||
$ | 28,704 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/12, repurchase price $28,703,861, collateralized by $28,360,000 U.S. Treasury Notes, 1.500%, due 3/31/19, value $29,281,700 | 0.010 | % | 7/02/12 | $ | 28,703,837 | ||||||||||||
Total Short-Term Investments (cost $28,703,837) | 28,703,837 | ||||||||||||||||||
Total Investments (cost $424,006,459) – 105.1% | 534,184,575 | ||||||||||||||||||
Other Assets Less Liabilities – (5.1)% (3) | (25,768,151 | ) | |||||||||||||||||
Net Assets – 100% | $ | 508,416,424 |
Investments in Derivatives at June 30, 2012
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (3.2)% | |||||||||||||||||||||||
(468 | ) | S&P 500 Index | $ | (60,840,000 | ) | 7/21/12 | $ | 1,300 | $ | (3,065,400 | ) | ||||||||||||
(898 | ) | S&P 500 Index | (118,985,000 | ) | 7/21/12 | 1,325 | (3,969,160 | ) | |||||||||||||||
(425 | ) | S&P 500 Index | (57,375,000 | ) | 7/21/12 | 1,350 | (1,088,000 | ) | |||||||||||||||
(500 | ) | S&P 500 Index | (68,750,000 | ) | 7/21/12 | 1,375 | (587,500 | ) | |||||||||||||||
(459 | ) | S&P 500 Index | (59,670,000 | ) | 8/18/12 | 1,300 | (3,369,060 | ) | |||||||||||||||
(426 | ) | S&P 500 Index | (56,445,000 | ) | 8/18/12 | 1,325 | (2,300,400 | ) | |||||||||||||||
(496 | ) | S&P 500 Index | (66,960,000 | ) | 8/18/12 | 1,350 | (1,825,280 | ) | |||||||||||||||
(3,672 | ) | Total Call Options Written (premiums received $14,212,430) | $ | (489,025,000 | ) | $ | (16,204,800 | ) |
For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(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) Other Assets Less Liabilities includes the Value of derivative instruments as noted within Investments in Derivatives at June 30, 2012.
(4) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(5) 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
23
JSN
Nuveen Equity Premium Opportunity Fund
Portfolio of Investments
June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.3% (5) | |||||||||||
Aerospace & Defense – 1.6% | |||||||||||
38,656 | Boeing Company | $ | 2,872,141 | ||||||||
52,665 | Honeywell International Inc. | 2,940,814 | |||||||||
8,874 | Huntington Ingalls Industries Inc., (2) | 357,090 | |||||||||
17,575 | Lockheed Martin Corporation | 1,530,431 | |||||||||
34,529 | Northrop Grumman Corporation | 2,202,605 | |||||||||
32,796 | Raytheon Company | 1,855,926 | |||||||||
28,284 | United Technologies Corporation | 2,136,291 | |||||||||
Total Aerospace & Defense | 13,895,298 | ||||||||||
Air Freight & Logistics – 0.9% | |||||||||||
99,086 | United Parcel Service, Inc., Class B | 7,804,013 | |||||||||
Auto Components – 0.1% | |||||||||||
60,739 | Gentex Corporation | 1,267,623 | |||||||||
Automobiles – 0.4% | |||||||||||
213,263 | Ford Motor Company | 2,045,192 | |||||||||
33,442 | Harley-Davidson, Inc. | 1,529,303 | |||||||||
Total Automobiles | 3,574,495 | ||||||||||
Beverages – 2.6% | |||||||||||
152,435 | Coca-Cola Company | 11,918,893 | |||||||||
28,504 | Monster Beverage Corporation, (2) | 2,029,485 | |||||||||
117,272 | PepsiCo, Inc. | 8,286,440 | |||||||||
Total Beverages | 22,234,818 | ||||||||||
Biotechnology – 1.7% | |||||||||||
109,715 | Celgene Corporation, (2) | 7,039,314 | |||||||||
159,283 | Gilead Sciences, Inc., (2) | 8,168,032 | |||||||||
Total Biotechnology | 15,207,346 | ||||||||||
Capital Markets – 1.2% | |||||||||||
129,710 | Charles Schwab Corporation | 1,677,150 | |||||||||
48,725 | Eaton Vance Corporation | 1,313,139 | |||||||||
27,060 | Goldman Sachs Group, Inc. | 2,593,972 | |||||||||
43,099 | Legg Mason, Inc. | 1,136,521 | |||||||||
121,415 | Morgan Stanley | 1,771,445 | |||||||||
61,497 | Waddell & Reed Financial, Inc., Class A | 1,862,129 | |||||||||
Total Capital Markets | 10,354,356 | ||||||||||
Chemicals – 1.7% | |||||||||||
63,776 | Dow Chemical Company | 2,008,944 | |||||||||
42,800 | E.I. Du Pont de Nemours and Company | 2,164,396 | |||||||||
61,739 | Eastman Chemical Company | 3,109,793 | |||||||||
42,416 | Monsanto Company | 3,511,196 | |||||||||
27,307 | Potash Corporation of Saskatchewan | 1,193,043 | |||||||||
95,980 | RPM International, Inc. | 2,610,656 | |||||||||
Total Chemicals | 14,598,028 |
Nuveen Investments
24
Shares | Description (1) | Value | |||||||||
Commercial Banks – 1.9% | |||||||||||
65,480 | Fifth Third Bancorp. | $ | 877,432 | ||||||||
86,613 | First Horizon National Corporation | 749,202 | |||||||||
143 | HSBC Holdings PLC, Sponsored ADR | 6,311 | |||||||||
6 | Lloyds TSB Group PLC, Sponsored ADR, (2) | 12 | |||||||||
176,748 | U.S. Bancorp | 5,684,216 | |||||||||
276,832 | Wells Fargo & Company | 9,257,262 | |||||||||
Total Commercial Banks | 16,574,435 | ||||||||||
Commercial Services & Supplies – 0.4% | |||||||||||
23,371 | Deluxe Corporation | 582,873 | |||||||||
49,936 | R.R. Donnelley & Sons Company | 587,747 | |||||||||
77,545 | Waste Management, Inc. | 2,590,003 | |||||||||
Total Commercial Services & Supplies | 3,760,623 | ||||||||||
Communications Equipment – 3.2% | |||||||||||
45,063 | ADTRAN, Inc. | 1,360,452 | |||||||||
13,861 | Aviat Networks Inc., (2) | 38,811 | |||||||||
630,518 | Cisco Systems, Inc. | 10,825,994 | |||||||||
19,247 | Harris Corporation | 805,487 | |||||||||
14,940 | Motorola Solutions Inc. | 718,763 | |||||||||
256,488 | QUALCOMM, Inc. | 14,281,252 | |||||||||
Total Communications Equipment | 28,030,759 | ||||||||||
Computers & Peripherals – 9.7% | |||||||||||
125,079 | Apple, Inc., (2) | 73,046,135 | |||||||||
211,358 | Dell Inc., (2) | 2,646,202 | |||||||||
157,114 | EMC Corporation, (2) | 4,026,832 | |||||||||
125,310 | Hewlett-Packard Company | 2,519,984 | |||||||||
72,669 | NetApp, Inc., (2) | 2,312,328 | |||||||||
Total Computers & Peripherals | 84,551,481 | ||||||||||
Consumer Finance – 0.8% | |||||||||||
59,964 | American Express Company | 3,490,504 | |||||||||
55,844 | Discover Financial Services | 1,931,086 | |||||||||
77,393 | SLM Corporation | 1,215,844 | |||||||||
Total Consumer Finance | 6,637,434 | ||||||||||
Containers & Packaging – 0.4% | |||||||||||
63,738 | Packaging Corp. of America | 1,799,961 | |||||||||
50,628 | Sonoco Products Company | 1,526,434 | |||||||||
Total Containers & Packaging | 3,326,395 | ||||||||||
Distributors – 0.2% | |||||||||||
31,204 | Genuine Parts Company | 1,880,041 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
35,953 | Hillenbrand Inc. | 660,816 | |||||||||
Diversified Financial Services – 2.2% | |||||||||||
600,967 | Bank of America Corporation | 4,915,910 | |||||||||
134,600 | Citigroup Inc. | 3,689,386 | |||||||||
10,689 | CME Group, Inc. | 2,865,828 | |||||||||
3,691 | ING Groep N.V, Sponsored ADR, (2) | 24,656 | |||||||||
224,788 | JP Morgan Chase & Co. | 8,031,675 | |||||||||
Total Diversified Financial Services | 19,527,455 |
Nuveen Investments
25
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Diversified Telecommunication Services – 2.4% | |||||||||||
346,193 | AT&T Inc. | $ | 12,345,242 | ||||||||
93,521 | Frontier Communications Corporation | 358,185 | |||||||||
181,521 | Verizon Communications Inc. | 8,066,793 | |||||||||
Total Diversified Telecommunication Services | 20,770,220 | ||||||||||
Electric Utilities – 1.6% | |||||||||||
38,821 | Companhia Energetica de Minas Gerais, Sponsored ADR | 715,083 | |||||||||
187,421 | Duke Energy Corporation | 4,321,928 | |||||||||
112,676 | Great Plains Energy Incorporated | 2,412,393 | |||||||||
57,468 | OGE Energy Corp. | 2,976,268 | |||||||||
129,707 | Pepco Holdings, Inc. | 2,538,366 | |||||||||
25,438 | Pinnacle West Capital Corporation | 1,316,162 | |||||||||
Total Electric Utilities | 14,280,200 | ||||||||||
Electrical Equipment – 1.3% | |||||||||||
23,275 | Cooper Industries Inc. | 1,586,890 | |||||||||
59,698 | Emerson Electric Company | 2,780,733 | |||||||||
11,240 | Hubbell Incorporated, Class B | 876,046 | |||||||||
31,575 | Rockwell Automation, Inc. | 2,085,845 | |||||||||
42,974 | Roper Industries Inc. | 4,236,377 | |||||||||
Total Electrical Equipment | 11,565,891 | ||||||||||
Electronic Equipment & Instruments – 0.2% | |||||||||||
102,078 | Corning Incorporated | 1,319,869 | |||||||||
Energy Equipment & Services – 1.6% | |||||||||||
25,308 | Diamond Offshore Drilling, Inc. | 1,496,462 | |||||||||
36,079 | Ensco International PLC, Class A, Sponsored ADR | 1,694,631 | |||||||||
117,793 | Halliburton Company | 3,344,143 | |||||||||
54,107 | Patterson-UTI Energy, Inc. | 787,798 | |||||||||
86,859 | Schlumberger Limited | 5,638,018 | |||||||||
17,510 | Tidewater Inc. | 811,764 | |||||||||
Total Energy Equipment & Services | 13,772,816 | ||||||||||
Food & Staples Retailing – 2.1% | |||||||||||
102,543 | CVS Caremark Corporation | 4,791,834 | |||||||||
82,219 | Kroger Co. | 1,906,659 | |||||||||
38,974 | SUPERVALU INC. | 201,885 | |||||||||
68,576 | Walgreen Co. | 2,028,478 | |||||||||
140,159 | Wal-Mart Stores, Inc. | 9,771,885 | |||||||||
Total Food & Staples Retailing | 18,700,741 | ||||||||||
Food Products – 0.6% | |||||||||||
144,950 | Kraft Foods Inc., Class A | 5,597,969 | |||||||||
Gas Utilities – 1.1% | |||||||||||
57,627 | AGL Resources Inc. | 2,233,046 | |||||||||
34,085 | Atmos Energy Corporation | 1,195,361 | |||||||||
41,373 | National Fuel Gas Company | 1,943,704 | |||||||||
99,610 | ONEOK, Inc. | 4,214,499 | |||||||||
Total Gas Utilities | 9,586,610 | ||||||||||
Health Care Equipment & Supplies – 1.0% | |||||||||||
65,107 | Baxter International, Inc. | 3,460,437 | |||||||||
36,821 | Hill Rom Holdings Inc. | 1,135,928 | |||||||||
97,109 | Hologic Inc., (2) | 1,751,846 | |||||||||
69,279 | Medtronic, Inc. | 2,683,176 | |||||||||
Total Health Care Equipment & Supplies | 9,031,387 |
Nuveen Investments
26
Shares | Description (1) | Value | |||||||||
Health Care Providers & Services – 2.0% | |||||||||||
47,194 | Aetna Inc. | $ | 1,829,711 | ||||||||
62,293 | Brookdale Senior Living Inc., (2) | 1,105,078 | |||||||||
27,564 | Coventry Health Care, Inc. | 876,260 | |||||||||
103,880 | Express Scripts, (2) | 5,799,620 | |||||||||
84,329 | UnitedHealth Group Incorporated | 4,933,247 | |||||||||
40,174 | Wellpoint Inc. | 2,562,699 | |||||||||
Total Health Care Providers & Services | 17,106,615 | ||||||||||
Hotels, Restaurants & Leisure – 1.6% | |||||||||||
51,390 | International Game Technology | 809,393 | |||||||||
17,582 | Las Vegas Sands | 764,641 | |||||||||
98,283 | McDonald's Corporation | 8,700,994 | |||||||||
21,179 | Starwood Hotels & Resorts Worldwide, Inc. | 1,123,334 | |||||||||
25,889 | Wynn Resorts Ltd | 2,685,207 | |||||||||
Total Hotels, Restaurants & Leisure | 14,083,569 | ||||||||||
Household Durables – 0.3% | |||||||||||
68,264 | KB Home | 668,987 | |||||||||
54,753 | Newell Rubbermaid Inc. | 993,219 | |||||||||
19,851 | Whirlpool Corporation | 1,214,087 | |||||||||
Total Household Durables | 2,876,293 | ||||||||||
Household Products – 1.5% | |||||||||||
40,780 | Colgate-Palmolive Company | 4,245,198 | |||||||||
142,569 | Procter & Gamble Company | 8,732,351 | |||||||||
Total Household Products | 12,977,549 | ||||||||||
Industrial Conglomerates – 1.6% | |||||||||||
18,623 | 3M Co. | 1,668,621 | |||||||||
595,443 | General Electric Company | 12,409,032 | |||||||||
Total Industrial Conglomerates | 14,077,653 | ||||||||||
Insurance – 1.9% | |||||||||||
65,172 | Allstate Corporation | 2,286,885 | |||||||||
19,096 | American International Group, (2) | 612,791 | |||||||||
26,066 | Arthur J. Gallagher & Co. | 914,135 | |||||||||
63,742 | Berkshire Hathaway Inc., Class B, (2) | 5,311,621 | |||||||||
92,800 | CNO Financial Group Inc. | 723,840 | |||||||||
60,339 | Fidelity National Title Group Inc., Class A | 1,162,129 | |||||||||
65,958 | Genworth Financial Inc., Class A, (2) | 373,322 | |||||||||
30,951 | Hartford Financial Services Group, Inc. | 545,666 | |||||||||
13,952 | Kemper Corporation | 429,024 | |||||||||
35,717 | Lincoln National Corporation | 781,131 | |||||||||
103,489 | Marsh & McLennan Companies, Inc. | 3,335,450 | |||||||||
Total Insurance | 16,475,994 | ||||||||||
Internet & Catalog Retail – 2.0% | |||||||||||
71,741 | Amazon.com, Inc., (2) | 16,382,057 | |||||||||
27,170 | HSN, Inc. | 1,096,310 | |||||||||
Total Internet & Catalog Retail | 17,478,367 | ||||||||||
Internet Software & Services – 4.4% | |||||||||||
39,603 | Akamai Technologies, Inc., (2) | 1,257,395 | |||||||||
28,789 | Baidu.com, Inc., Sponsored ADR, (2) | 3,310,159 | |||||||||
58,343 | Earthlink, Inc. | 434,072 | |||||||||
199,069 | eBay Inc., (2) | 8,362,889 | |||||||||
35,490 | Google Inc., Class A, (2) | 20,586,683 |
Nuveen Investments
27
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Internet Software & Services (continued) | |||||||||||
22,576 | IAC/InterActiveCorp. | $ | 1,029,466 | ||||||||
83,134 | VeriSign, Inc., (2) | 3,622,148 | |||||||||
Total Internet Software & Services | 38,602,812 | ||||||||||
IT Services – 3.6% | |||||||||||
117,025 | Automatic Data Processing, Inc. | 6,513,612 | |||||||||
61,069 | Fidelity National Information Services | 2,081,232 | |||||||||
77,353 | International Business Machines Corporation (IBM) | 15,128,700 | |||||||||
14,762 | Lender Processing Services Inc. | 373,183 | |||||||||
108,876 | Paychex, Inc. | 3,419,795 | |||||||||
31,831 | Visa Inc., Class A | 3,935,267 | |||||||||
Total IT Services | 31,451,789 | ||||||||||
Leisure Equipment & Products – 0.5% | |||||||||||
77,138 | Mattel, Inc. | 2,502,357 | |||||||||
29,666 | Polaris Industries Inc. | 2,120,526 | |||||||||
Total Leisure Equipment & Products | 4,622,883 | ||||||||||
Machinery – 1.9% | |||||||||||
53,257 | Caterpillar Inc. | 4,522,052 | |||||||||
25,197 | Deere & Company | 2,037,681 | |||||||||
43,913 | Graco Inc. | 2,023,511 | |||||||||
26,329 | Joy Global Inc. | 1,493,644 | |||||||||
27,707 | SPX Corporation | 1,809,821 | |||||||||
40,513 | Stanley Black & Decker Inc. | 2,607,417 | |||||||||
50,568 | Timken Company | 2,315,509 | |||||||||
Total Machinery | 16,809,635 | ||||||||||
Media – 3.7% | |||||||||||
322,788 | Comcast Corporation, Special Class A | 10,135,543 | |||||||||
97,817 | New York Times, Class A, (2) | 762,973 | |||||||||
309,975 | News Corporation, Class A | 6,909,343 | |||||||||
58,689 | Omnicom Group, Inc. | 2,852,285 | |||||||||
82,498 | Regal Entertainment Group, Class A | 1,135,172 | |||||||||
44,293 | Viacom Inc., Class B | 2,082,657 | |||||||||
168,852 | Walt Disney Company | 8,189,322 | |||||||||
Total Media | 32,067,295 | ||||||||||
Metals & Mining – 0.9% | |||||||||||
287,484 | Alcoa Inc. | 2,515,485 | |||||||||
33,263 | Barrick Gold Corporation | 1,249,691 | |||||||||
66,105 | Freeport-McMoRan Copper & Gold, Inc. | 2,252,197 | |||||||||
148,596 | Hecla Mining Company | 705,831 | |||||||||
28,154 | Southern Copper Corporation | 887,133 | |||||||||
Total Metals & Mining | 7,610,337 | ||||||||||
Multiline Retail – 1.0% | |||||||||||
59,243 | Macy's, Inc. | 2,034,997 | |||||||||
47,582 | Nordstrom, Inc. | 2,364,350 | |||||||||
21,415 | Sears Holding Corporation, (2) | 1,278,476 | |||||||||
57,463 | Target Corporation | 3,343,772 | |||||||||
Total Multiline Retail | 9,021,595 | ||||||||||
Multi-Utilities – 0.6% | |||||||||||
62,041 | Ameren Corporation | 2,080,855 | |||||||||
97,043 | Public Service Enterprise Group Incorporated | 3,153,898 | |||||||||
Total Multi-Utilities | 5,234,753 |
Nuveen Investments
28
Shares | Description (1) | Value | |||||||||
Oil, Gas & Consumable Fuels – 6.6% | |||||||||||
127,777 | Chevron Corporation | $ | 13,480,474 | ||||||||
2,747 | CNOOC Limited, Sponsored ADR | 552,834 | |||||||||
109,700 | ConocoPhillips | 6,130,036 | |||||||||
301,343 | Exxon Mobil Corporation | 25,785,920 | |||||||||
34,787 | Hess Corporation | 1,511,495 | |||||||||
58,407 | Occidental Petroleum Corporation | 5,009,568 | |||||||||
3,274 | PetroChina Company Limited, Sponsored ADR | 422,804 | |||||||||
54,850 | Phillips 66 | 1,823,214 | |||||||||
3,460 | Royal Dutch Shell PLC, Class A, Sponsored ADR | 233,308 | |||||||||
122,639 | SandRidge Energy Inc., (2) | 820,455 | |||||||||
39,133 | StatoilHydro ASA, Sponsored ADR | 933,713 | |||||||||
28,912 | Suncor Energy, Inc. | 837,002 | |||||||||
Total Oil, Gas & Consumable Fuels | 57,540,823 | ||||||||||
Pharmaceuticals – 6.0% | |||||||||||
144,749 | Abbott Laboratories | 9,331,968 | |||||||||
153,480 | Bristol-Myers Squibb Company | 5,517,606 | |||||||||
102,340 | Eli Lilly and Company | 4,391,409 | |||||||||
1,112 | GlaxoSmithKline PLC, Sponsored ADR | 50,674 | |||||||||
198,321 | Johnson & Johnson | 13,398,567 | |||||||||
209,654 | Merck & Company Inc. | 8,753,055 | |||||||||
460,108 | Pfizer Inc. | 10,582,484 | |||||||||
Total Pharmaceuticals | 52,025,763 | ||||||||||
Professional Services – 0.1% | |||||||||||
29,079 | Manpower Inc. | 1,065,745 | |||||||||
18,692 | Resources Connection, Inc. | 229,912 | |||||||||
Total Professional Services | 1,295,657 | ||||||||||
Real Estate Investment Trust – 1.7% | |||||||||||
60,679 | Apartment Investment & Management Company, Class A | 1,640,153 | |||||||||
69,975 | Brandywine Realty Trust | 863,492 | |||||||||
34,687 | CBL & Associates Properties Inc. | 677,784 | |||||||||
129,993 | CubeSmart | 1,517,018 | |||||||||
114,294 | DCT Industrial Trust Inc. | 720,052 | |||||||||
43,378 | Health Care REIT, Inc. | 2,528,937 | |||||||||
79,809 | Lexington Corporate Properties Trust | 675,982 | |||||||||
46,608 | Liberty Property Trust | 1,717,039 | |||||||||
71,664 | Ventas Inc. | 4,523,432 | |||||||||
Total Real Estate Investment Trust | 14,863,889 | ||||||||||
Road & Rail – 0.7% | |||||||||||
12,904 | Dollar Thrifty Automotive Group Inc., (2) | 1,044,708 | |||||||||
41,968 | Union Pacific Corporation | 5,007,202 | |||||||||
Total Road & Rail | 6,051,910 | ||||||||||
Semiconductors & Equipment – 3.5% | |||||||||||
95,384 | Altera Corporation | 3,227,795 | |||||||||
64,144 | Analog Devices, Inc. | 2,416,304 | |||||||||
103,217 | Broadcom Corporation, Class A | 3,488,735 | |||||||||
693,497 | Intel Corporation | 18,481,695 | |||||||||
26,060 | Intersil Holding Corporation, Class A | 277,539 | |||||||||
78,287 | Linear Technology Corporation | 2,452,732 | |||||||||
Total Semiconductors & Equipment | 30,344,800 |
Nuveen Investments
29
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Software – 7.1% | |||||||||||
296,620 | Activision Blizzard Inc. | $ | 3,556,474 | ||||||||
141,680 | Adobe Systems Incorporated, (2) | 4,586,182 | |||||||||
79,219 | Autodesk, Inc., (2) | 2,771,873 | |||||||||
1,057,612 | Microsoft Corporation | 32,352,350 | |||||||||
623,263 | Oracle Corporation | 18,510,910 | |||||||||
Total Software | 61,777,789 | ||||||||||
Specialty Retail – 2.0% | |||||||||||
20,823 | Abercrombie & Fitch Co., Class A | 710,897 | |||||||||
59,432 | American Eagle Outfitters, Inc. | 1,172,593 | |||||||||
51,495 | Best Buy Co., Inc. | 1,079,335 | |||||||||
58,779 | CarMax, Inc., (2) | 1,524,727 | |||||||||
73,397 | Gap, Inc. | 2,008,142 | |||||||||
97,158 | Home Depot, Inc. | 5,148,402 | |||||||||
63,713 | Limited Brands, Inc. | 2,709,714 | |||||||||
118,515 | Lowe's Companies, Inc. | 3,370,567 | |||||||||
Total Specialty Retail | 17,724,377 | ||||||||||
Thrifts & Mortgage Finance – 0.1% | |||||||||||
40,800 | MGIC Investment Corporation, (2) | 117,504 | |||||||||
56,714 | New York Community Bancorp Inc. | 710,626 | |||||||||
Total Thrifts & Mortgage Finance | 828,130 | ||||||||||
Tobacco – 1.8% | |||||||||||
68,111 | Altria Group, Inc. | 2,353,235 | |||||||||
130,794 | Philip Morris International | 11,413,084 | |||||||||
36,132 | Reynolds American Inc. | 1,621,243 | |||||||||
Total Tobacco | 15,387,562 | ||||||||||
Wireless Telecommunication Services – 0.2% | |||||||||||
9,818 | China Mobile Limited, Sponsored ADR | 536,750 | |||||||||
444,739 | Sprint Nextel Corporation, (2) | 1,449,849 | |||||||||
Total Wireless Telecommunication Services | 1,986,599 | ||||||||||
Total Common Stocks (cost $626,602,050) | 858,835,557 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 6.8% | |||||||||||||||||||
$ | 59,764 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/12, repurchase price $59,764,386, collateralized by $54,490,000 U.S. Treasury Notes, 2.750%, due 2/15/19, value $60,960,688 | 0.010 | % | 7/02/12 | $ | 59,764,336 | ||||||||||||
Total Short-Term Investments (cost $59,764,336) | 59,764,336 | ||||||||||||||||||
Total Investments (cost $686,366,386) – 105.1% | 918,599,893 | ||||||||||||||||||
Other Assets Less Liabilities – (5.1)% (3) | (44,691,402 | ) | |||||||||||||||||
Net Assets – 100% | $ | 873,908,491 |
Nuveen Investments
30
Investments in Derivatives at June 30, 2012
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (3.2)% | |||||||||||||||||||||||
(999 | ) | MINI-Nasdaq-100 Index | $ | (24,975,000 | ) | 7/21/12 | $ | 250.0 | $ | (1,276,223 | ) | ||||||||||||
(958 | ) | MINI-Nasdaq-100 Index | (24,189,500 | ) | 7/21/12 | 252.5 | (998,715 | ) | |||||||||||||||
(1,051 | ) | MINI-Nasdaq-100 Index | (26,800,500 | ) | 7/21/12 | 255.0 | (890,723 | ) | |||||||||||||||
(963 | ) | MINI-Nasdaq-100 Index | (25,278,750 | ) | 7/21/12 | 262.5 | (344,272 | ) | |||||||||||||||
(1,060 | ) | MINI-Nasdaq-100 Index | (28,090,000 | ) | 7/21/12 | 265.0 | (278,780 | ) | |||||||||||||||
(996 | ) | MINI-Nasdaq-100 Index | (25,149,000 | ) | 8/18/12 | 252.5 | (1,242,510 | ) | |||||||||||||||
(1,097 | ) | MINI-Nasdaq-100 Index | (27,973,500 | ) | 8/18/12 | 255.0 | (1,187,502 | ) | |||||||||||||||
(992 | ) | MINI-Nasdaq-100 Index | (25,544,000 | ) | 8/18/12 | 257.5 | (920,080 | ) | |||||||||||||||
(599 | ) | S&P 500 Index | (77,870,000 | ) | 7/21/12 | 1,300.0 | (3,923,450 | ) | |||||||||||||||
(1,140 | ) | S&P 500 Index | (151,050,000 | ) | 7/21/12 | 1,325.0 | (5,038,800 | ) | |||||||||||||||
(555 | ) | S&P 500 Index | (74,925,000 | ) | 7/21/12 | 1,350.0 | (1,420,800 | ) | |||||||||||||||
(598 | ) | S&P 500 Index | (82,225,000 | ) | 7/21/12 | 1,375.0 | (702,650 | ) | |||||||||||||||
(602 | ) | S&P 500 Index | (78,260,000 | ) | 8/18/12 | 1,300.0 | (4,418,680 | ) | |||||||||||||||
(555 | ) | S&P 500 Index | (73,537,500 | ) | 8/18/12 | 1,325.0 | (2,997,000 | ) | |||||||||||||||
(638 | ) | S&P 500 Index | (86,130,000 | ) | 8/18/12 | 1,350.0 | (2,347,840 | ) | |||||||||||||||
(12,803 | ) | Total Call Options Written (premiums received $24,350,565) | $ | (831,997,750 | ) | $ | (27,988,025 | ) |
For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(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) Other Assets Less Liabilities includes the Value of derivative instruments as noted within Investments in Derivatives at June 30, 2012.
(4) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(5) 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
31
JLA
Nuveen Equity Premium Advantage Fund
Portfolio of Investments
June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.0% (5) | |||||||||||
Aerospace & Defense – 1.2% | |||||||||||
15,525 | Boeing Company | $ | 1,153,508 | ||||||||
29,256 | Honeywell International Inc. | 1,633,655 | |||||||||
19,873 | United Technologies Corporation | 1,501,008 | |||||||||
Total Aerospace & Defense | 4,288,171 | ||||||||||
Air Freight & Logistics – 0.5% | |||||||||||
21,594 | United Parcel Service, Inc., Class B | 1,700,743 | |||||||||
Airlines – 0.1% | |||||||||||
5,693 | Delta Air Lines, Inc., (2) | 62,338 | |||||||||
26,363 | Southwest Airlines Co. | 243,067 | |||||||||
Total Airlines | 305,405 | ||||||||||
Auto Components – 0.0% | |||||||||||
10,102 | American Axle and Manufacturing Holdings Inc., (2) | 105,970 | |||||||||
Automobiles – 0.4% | |||||||||||
59,240 | Ford Motor Company | 568,112 | |||||||||
14,597 | Harley-Davidson, Inc. | 667,521 | |||||||||
Total Automobiles | 1,235,633 | ||||||||||
Beverages – 1.4% | |||||||||||
23,650 | Coca-Cola Company | 1,849,194 | |||||||||
16,426 | Monster Beverage Corporation, (2) | 1,169,531 | |||||||||
26,928 | PepsiCo, Inc. | 1,902,732 | |||||||||
Total Beverages | 4,921,457 | ||||||||||
Biotechnology – 2.6% | |||||||||||
73,157 | Amgen Inc. | 5,343,387 | |||||||||
55,390 | Celgene Corporation, (2) | 3,553,822 | |||||||||
Total Biotechnology | 8,897,209 | ||||||||||
Capital Markets – 0.8% | |||||||||||
28,502 | Bank of New York Company, Inc. | 625,619 | |||||||||
62,652 | Charles Schwab Corporation | 810,090 | |||||||||
49,137 | Morgan Stanley | 716,909 | |||||||||
17,346 | Waddell & Reed Financial, Inc., Class A | 525,237 | |||||||||
Total Capital Markets | 2,677,855 | ||||||||||
Chemicals – 1.1% | |||||||||||
586 | CF Industries Holdings, Inc. | 113,532 | |||||||||
45,174 | Dow Chemical Company | 1,422,981 | |||||||||
24,616 | E.I. Du Pont de Nemours and Company | 1,244,831 | |||||||||
10,514 | Monsanto Company | 870,349 | |||||||||
935 | Mosaic Company | 51,201 | |||||||||
Total Chemicals | 3,702,894 |
Nuveen Investments
32
Shares | Description (1) | Value | |||||||||
Commercial Banks – 1.5% | |||||||||||
65,040 | U.S. Bancorp | $ | 2,091,686 | ||||||||
95,980 | Wells Fargo & Company | 3,209,571 | |||||||||
Total Commercial Banks | 5,301,257 | ||||||||||
Commercial Services & Supplies – 0.1% | |||||||||||
26,895 | R.R. Donnelley & Sons Company | 316,554 | |||||||||
Communications Equipment – 4.2% | |||||||||||
6,820 | Aviat Networks Inc., (2) | 19,096 | |||||||||
399,665 | Cisco Systems, Inc. | 6,862,248 | |||||||||
136,570 | QUALCOMM, Inc. | 7,604,218 | |||||||||
Total Communications Equipment | 14,485,562 | ||||||||||
Computers & Peripherals – 12.5% | |||||||||||
70,815 | Apple, Inc., (2) | 41,355,963 | |||||||||
54,919 | EMC Corporation, (2) | 1,407,574 | |||||||||
22,423 | Hewlett-Packard Company | 450,927 | |||||||||
1,485 | Western Digital Corporation, (2) | 45,263 | |||||||||
Total Computers & Peripherals | 43,259,727 | ||||||||||
Consumer Finance – 0.5% | |||||||||||
21,573 | American Express Company | 1,255,764 | |||||||||
27,215 | SLM Corporation | 427,548 | |||||||||
Total Consumer Finance | 1,683,312 | ||||||||||
Containers & Packaging – 0.2% | |||||||||||
19,780 | Packaging Corp. of America | 558,587 | |||||||||
4,824 | Sonoco Products Company | 145,444 | |||||||||
Total Containers & Packaging | 704,031 | ||||||||||
Distributors – 0.1% | |||||||||||
3,449 | Genuine Parts Company | 207,802 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
4,119 | ITT Educational Services, Inc., (2) | 250,229 | |||||||||
21,475 | Service Corporation International | 265,646 | |||||||||
Total Diversified Consumer Services | 515,875 | ||||||||||
Diversified Financial Services – 1.0% | |||||||||||
55,518 | Bank of America Corporation | 454,137 | |||||||||
50,290 | Citigroup Inc. | 1,378,449 | |||||||||
3,847 | CME Group, Inc. | 1,031,419 | |||||||||
6,121 | JP Morgan Chase & Co. | 218,703 | |||||||||
13,902 | Moody's Corporation | 508,118 | |||||||||
Total Diversified Financial Services | 3,590,826 | ||||||||||
Diversified Telecommunication Services – 1.7% | |||||||||||
93,269 | AT&T Inc. | 3,325,973 | |||||||||
1 | Frontier Communications Corporation | 4 | |||||||||
59,414 | Verizon Communications Inc. | 2,640,358 | |||||||||
Total Diversified Telecommunication Services | 5,966,335 | ||||||||||
Electric Utilities – 1.6% | |||||||||||
93,478 | Duke Energy Corporation | 2,155,603 | |||||||||
48,358 | Great Plains Energy Incorporated | 1,035,345 | |||||||||
19,953 | OGE Energy Corp. | 1,033,366 | |||||||||
28,722 | Pinnacle West Capital Corporation | 1,486,076 | |||||||||
Total Electric Utilities | 5,710,390 |
Nuveen Investments
33
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Electrical Equipment – 1.6% | |||||||||||
15,491 | Cooper Industries Inc. | $ | 1,056,176 | ||||||||
29,935 | Emerson Electric Company | 1,394,372 | |||||||||
11,238 | Hubbell Incorporated, Class B | 875,890 | |||||||||
15,244 | Rockwell Automation, Inc. | 1,007,019 | |||||||||
13,012 | Roper Industries Inc. | 1,282,723 | |||||||||
Total Electrical Equipment | 5,616,180 | ||||||||||
Electronic Equipment & Instruments – 0.4% | |||||||||||
17,200 | Amphenol Corporation, Class A | 944,624 | |||||||||
47,715 | Corning Incorporated | 616,955 | |||||||||
Total Electronic Equipment & Instruments | 1,561,579 | ||||||||||
Energy Equipment & Services – 1.1% | |||||||||||
26,765 | Cameron International Corporation, (2) | 1,143,133 | |||||||||
9,396 | Diamond Offshore Drilling, Inc. | 555,585 | |||||||||
33,334 | Halliburton Company | 946,352 | |||||||||
19,559 | Schlumberger Limited | 1,269,575 | |||||||||
Total Energy Equipment & Services | 3,914,645 | ||||||||||
Food & Staples Retailing – 1.6% | |||||||||||
37,645 | CVS Caremark Corporation | 1,759,151 | |||||||||
27,808 | Kroger Co. | 644,868 | |||||||||
28,483 | Walgreen Co. | 842,527 | |||||||||
34,046 | Wal-Mart Stores, Inc. | 2,373,687 | |||||||||
Total Food & Staples Retailing | 5,620,233 | ||||||||||
Food Products – 0.6% | |||||||||||
8,233 | Archer-Daniels-Midland Company | 243,038 | |||||||||
47,590 | Kraft Foods Inc., Class A | 1,837,926 | |||||||||
Total Food Products | 2,080,964 | ||||||||||
Gas Utilities – 0.4% | |||||||||||
21,576 | AGL Resources Inc. | 836,070 | |||||||||
15,026 | Piedmont Natural Gas Company | 483,687 | |||||||||
Total Gas Utilities | 1,319,757 | ||||||||||
Health Care Equipment & Supplies – 0.9% | |||||||||||
16,835 | Baxter International, Inc. | 894,780 | |||||||||
9,327 | CareFusion Corporation, (2) | 239,517 | |||||||||
4,652 | Covidien PLC | 248,882 | |||||||||
12,334 | Hill Rom Holdings Inc. | 380,504 | |||||||||
7,766 | Medtronic, Inc. | 300,777 | |||||||||
11,540 | Saint Jude Medical Inc. | 460,561 | |||||||||
8,617 | Zimmer Holdings, Inc. | 554,590 | |||||||||
Total Health Care Equipment & Supplies | 3,079,611 | ||||||||||
Health Care Providers & Services – 1.5% | |||||||||||
13,759 | Brookdale Senior Living Inc., (2) | 244,085 | |||||||||
23,480 | Cardinal Health, Inc. | 986,160 | |||||||||
25,434 | Lincare Holdings | 865,265 | |||||||||
898 | McKesson HBOC Inc. | 84,188 | |||||||||
11,450 | Omnicare, Inc. | 357,584 | |||||||||
48,700 | Tenet Healthcare Corporation, (2) | 255,188 | |||||||||
15,892 | UnitedHealth Group Incorporated | 929,682 | |||||||||
20,106 | Universal Health Services, Inc., Class B | 867,775 | |||||||||
8,528 | Wellpoint Inc. | 544,001 | |||||||||
Total Health Care Providers & Services | 5,133,928 |
Nuveen Investments
34
Shares | Description (1) | Value | |||||||||
Hotels, Restaurants & Leisure – 1.9% | |||||||||||
19,168 | Carnival Corporation | $ | 656,887 | ||||||||
21,506 | International Game Technology | 338,720 | |||||||||
29,562 | McDonald's Corporation | 2,617,124 | |||||||||
26,474 | Starwood Hotels & Resorts Worldwide, Inc. | 1,404,181 | |||||||||
84,855 | The Wendy's Company | 400,516 | |||||||||
19,573 | Tim Hortons Inc. | 1,030,323 | |||||||||
Total Hotels, Restaurants & Leisure | 6,447,751 | ||||||||||
Household Durables – 0.4% | |||||||||||
41,536 | KB Home | 407,053 | |||||||||
36,936 | Newell Rubbermaid Inc. | 670,019 | |||||||||
7,376 | Whirlpool Corporation | 451,116 | |||||||||
Total Household Durables | 1,528,188 | ||||||||||
Household Products – 0.6% | |||||||||||
32,355 | Procter & Gamble Company | 1,981,744 | |||||||||
Industrial Conglomerates – 0.9% | |||||||||||
9,297 | 3M Co. | 833,011 | |||||||||
12,006 | Danaher Corporation | 625,272 | |||||||||
72,788 | General Electric Company | 1,516,902 | |||||||||
Total Industrial Conglomerates | 2,975,185 | ||||||||||
Insurance – 1.3% | |||||||||||
3,318 | Arch Capital Group Limited, (2) | 131,691 | |||||||||
26,516 | Fidelity National Title Group Inc., Class A | 510,698 | |||||||||
29,867 | Marsh & McLennan Companies, Inc. | 962,613 | |||||||||
24,982 | Prudential Financial, Inc. | 1,209,878 | |||||||||
24,970 | Travelers Companies, Inc. | 1,594,085 | |||||||||
Total Insurance | 4,408,965 | ||||||||||
Internet & Catalog Retail – 5.3% | |||||||||||
78,646 | Amazon.com, Inc., (2) | 17,958,814 | |||||||||
10,391 | HSN, Inc. | 419,277 | |||||||||
Total Internet & Catalog Retail | 18,378,091 | ||||||||||
Internet Software & Services – 6.4% | |||||||||||
30,462 | Akamai Technologies, Inc., (2) | 967,169 | |||||||||
2,017 | AOL Inc., (2) | 56,637 | |||||||||
19,115 | Baidu.com, Inc., Sponsored ADR, (2) | 2,197,843 | |||||||||
121,109 | eBay Inc., (2) | 5,087,789 | |||||||||
20,389 | Google Inc., Class A, (2) | 11,827,047 | |||||||||
20,300 | IAC/InterActiveCorp. | 925,680 | |||||||||
69,658 | Yahoo! Inc., (2) | 1,102,686 | |||||||||
Total Internet Software & Services | 22,164,851 | ||||||||||
IT Services – 3.2% | |||||||||||
46,267 | Automatic Data Processing, Inc. | 2,575,221 | |||||||||
23,280 | Fidelity National Information Services | 793,382 | |||||||||
8,158 | Global Payments Inc. | 352,670 | |||||||||
14,822 | Infosys Technologies Limited, Sponsored ADR | 667,879 | |||||||||
17,369 | International Business Machines Corporation (IBM) | 3,397,029 | |||||||||
12,871 | Lender Processing Services Inc. | 325,379 | |||||||||
58,743 | Paychex, Inc. | 1,845,118 | |||||||||
8,257 | Visa Inc., Class A | 1,020,813 | |||||||||
Total IT Services | 10,977,491 |
Nuveen Investments
35
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Life Sciences Tools & Services – 0.1% | |||||||||||
15,384 | Agilent Technologies, Inc. | $ | 603,668 | ||||||||
Machinery – 1.5% | |||||||||||
18,500 | Caterpillar Inc. | 1,570,835 | |||||||||
9,695 | Deere & Company | 784,035 | |||||||||
22,173 | Eaton Corporation | 878,716 | |||||||||
22,531 | Graco Inc. | 1,038,228 | |||||||||
16,187 | SPX Corporation | 1,057,335 | |||||||||
Total Machinery | 5,329,149 | ||||||||||
Media – 4.1% | |||||||||||
23,415 | CBS Corporation, Class B | 767,544 | |||||||||
162,514 | Comcast Corporation, Special Class A | 5,102,940 | |||||||||
72,075 | DIRECTV Group, Inc., (2) | 3,518,702 | |||||||||
2,751 | Liberty Media Corporation-Liberty Capital, Class A, (2) | 241,840 | |||||||||
51,552 | News Corporation, Class B | 1,160,951 | |||||||||
20,124 | Omnicom Group, Inc. | 978,026 | |||||||||
6,780 | Time Warner Cable Inc. | 556,638 | |||||||||
9,864 | Time Warner Inc. | 379,764 | |||||||||
30,876 | Walt Disney Company | 1,497,486 | |||||||||
Total Media | 14,203,891 | ||||||||||
Metals & Mining – 0.2% | |||||||||||
8,735 | AngloGold Ashanti Limited, Sponsored ADR | 299,960 | |||||||||
720 | Cliffs Natural Resources Inc. | 35,489 | |||||||||
54,923 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 311,413 | |||||||||
1,194 | Freeport-McMoRan Copper & Gold, Inc. | 40,680 | |||||||||
1,736 | Newmont Mining Corporation | 84,213 | |||||||||
1,849 | United States Steel Corporation | 38,089 | |||||||||
Total Metals & Mining | 809,844 | ||||||||||
Multiline Retail – 0.6% | |||||||||||
10,865 | Family Dollar Stores, Inc. | 722,305 | |||||||||
10,883 | J.C. Penney Company, Inc. | 253,683 | |||||||||
4,511 | Kohl's Corporation | 205,205 | |||||||||
29,265 | Macy's, Inc. | 1,005,253 | |||||||||
Total Multiline Retail | 2,186,446 | ||||||||||
Multi-Utilities – 0.3% | |||||||||||
21,316 | Integrys Energy Group, Inc. | 1,212,241 | |||||||||
Oil, Gas & Consumable Fuels – 4.6% | |||||||||||
3,368 | Cabot Oil & Gas Corporation | 132,699 | |||||||||
47,033 | Chevron Corporation | 4,961,982 | |||||||||
45,298 | ConocoPhillips | 2,531,252 | |||||||||
83,497 | Exxon Mobil Corporation | 7,144,838 | |||||||||
1,606 | Marathon Oil Corporation | 41,065 | |||||||||
22,649 | Phillips 66 | 752,853 | |||||||||
5,224 | Royal Dutch Shell PLC, Class A, Sponsored ADR | 352,254 | |||||||||
Total Oil, Gas & Consumable Fuels | 15,916,943 | ||||||||||
Paper & Forest Products – 0.1% | |||||||||||
21,984 | International Paper Company | 635,557 | |||||||||
Pharmaceuticals – 4.5% | |||||||||||
41,688 | Abbott Laboratories | 2,687,625 | |||||||||
13,538 | Allergan, Inc. | 1,253,213 | |||||||||
69,669 | Bristol-Myers Squibb Company | 2,504,601 |
Nuveen Investments
36
Shares | Description (1) | Value | |||||||||
Pharmaceuticals (continued) | |||||||||||
6,329 | Eli Lilly and Company | $ | 271,577 | ||||||||
13,675 | Forest Laboratories, Inc., (2) | 478,488 | |||||||||
7,458 | GlaxoSmithKline PLC, Sponsored ADR | 339,861 | |||||||||
35,148 | Johnson & Johnson | 2,374,599 | |||||||||
92,859 | Merck & Company Inc. | 3,876,863 | |||||||||
6,190 | Novartis AG, Sponsored ADR | 346,021 | |||||||||
60,885 | Pfizer Inc. | 1,400,355 | |||||||||
Total Pharmaceuticals | 15,533,203 | ||||||||||
Professional Services – 0.4% | |||||||||||
18,950 | Manpower Inc. | 694,518 | |||||||||
30,314 | Robert Half International Inc. | 866,071 | |||||||||
Total Professional Services | 1,560,589 | ||||||||||
Real Estate Investment Trust – 1.0% | |||||||||||
18,413 | Apartment Investment & Management Company, Class A | 497,703 | |||||||||
28,958 | CubeSmart | 337,940 | |||||||||
4,590 | Developers Diversified Realty Corporation | 67,198 | |||||||||
40,126 | Senior Housing Properties Trust | 895,612 | |||||||||
25,511 | Ventas Inc. | 1,610,254 | |||||||||
Total Real Estate Investment Trust | 3,408,707 | ||||||||||
Road & Rail – 0.0% | |||||||||||
4,314 | CSX Corporation | 96,461 | |||||||||
Semiconductors & Equipment – 5.8% | |||||||||||
54,140 | Advanced Micro Devices, Inc., (2) | 310,222 | |||||||||
52,172 | Altera Corporation | 1,765,500 | |||||||||
25,698 | Analog Devices, Inc. | 968,044 | |||||||||
96,224 | Applied Materials, Inc. | 1,102,727 | |||||||||
93,518 | Atmel Corporation, (2) | 626,571 | |||||||||
48,224 | Broadcom Corporation, Class A | 1,629,971 | |||||||||
4,697 | Cree, Inc., (2) | 120,572 | |||||||||
1,090 | Cymer, Inc., (2) | 64,256 | |||||||||
11,761 | Cypress Semiconductor Corporation | 155,480 | |||||||||
28,948 | Fairchild Semiconductor International Inc., Class A, (2) | 408,167 | |||||||||
17,789 | Integrated Device Technology, Inc., (2) | 99,974 | |||||||||
363,454 | Intel Corporation | 9,686,049 | |||||||||
2,596 | Intersil Holding Corporation, Class A | 27,647 | |||||||||
5,499 | Lam Research Corporation, (2) | 207,532 | |||||||||
45,919 | Linear Technology Corporation | 1,438,642 | |||||||||
35,700 | LSI Logic Corporation, (2) | 227,409 | |||||||||
5,819 | MEMC Electronic Materials, (2) | 12,627 | |||||||||
78,957 | NVIDIA Corporation, (2) | 1,091,186 | |||||||||
2,774 | Taiwan Semiconductor Manufacturing Company Ltd., Sponsored ADR | 38,725 | |||||||||
Total Semiconductors & Equipment | 19,981,301 | ||||||||||
Software – 10.9% | |||||||||||
171,474 | Activision Blizzard Inc. | 2,055,973 | |||||||||
60,160 | Adobe Systems Incorporated, (2) | 1,947,379 | |||||||||
43,406 | Autodesk, Inc., (2) | 1,518,776 | |||||||||
65,185 | CA Inc. | 1,765,862 | |||||||||
33,659 | Cadence Design Systems, Inc., (2) | 369,912 | |||||||||
623,086 | Microsoft Corporation | 19,060,201 | |||||||||
372,244 | Oracle Corporation | 11,055,647 | |||||||||
Total Software | 37,773,750 |
Nuveen Investments
37
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Specialty Retail – 2.2% | |||||||||||
16,694 | Best Buy Co., Inc. | $ | 349,906 | ||||||||
18,012 | Gap, Inc. | 492,808 | |||||||||
36,723 | Home Depot, Inc. | 1,945,952 | |||||||||
32,217 | Limited Brands, Inc. | 1,370,189 | |||||||||
35,867 | Lowe's Companies, Inc. | 1,020,057 | |||||||||
814 | Orchard Supply Hardware Stores Corporation, (2) | 13,537 | |||||||||
31,159 | TJX Companies, Inc. | 1,337,656 | |||||||||
35,381 | Urban Outfitters, Inc., (2) | 976,162 | |||||||||
Total Specialty Retail | 7,506,267 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.3% | |||||||||||
15,790 | Coach, Inc. | 923,399 | |||||||||
Thrifts & Mortgage Finance – 0.0% | |||||||||||
1,712 | Tree.com Inc., (2) | 19,585 | |||||||||
Tobacco – 1.2% | |||||||||||
34,008 | Altria Group, Inc. | 1,174,976 | |||||||||
33,961 | Philip Morris International | 2,963,437 | |||||||||
Total Tobacco | 4,138,413 | ||||||||||
Wireless Telecommunication Services – 0.5% | |||||||||||
9,319 | Crown Castle International Corporation, (2) | 546,653 | |||||||||
39,960 | Vodafone Group PLC, Sponsored ADR | 1,126,073 | |||||||||
Total Wireless Telecommunication Services | 1,672,726 | ||||||||||
Total Common Stocks (cost $220,460,728) | 340,278,311 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 7.2% | |||||||||||||||||||
$ | 25,016 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/12, repurchase price $25,015,847, collateralized by $24,715,000 U.S. Treasury Notes, 1.500%, due 3/31/19, value $25,518,238 | 0.010 | % | 7/02/12 | $ | 25,015,826 | ||||||||||||
Total Short-Term Investments (cost $25,015,826) | 25,015,826 | ||||||||||||||||||
Total Investments (cost $245,476,554) – 105.2% | 365,294,137 | ||||||||||||||||||
Other Assets Less Liabilities – (5.2)% (3) | (18,105,304 | ) | |||||||||||||||||
Net Assets – 100% | $ | 347,188,833 |
Nuveen Investments
38
Investments in Derivatives at June 30, 2012
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (3.2)% | |||||||||||||||||||||||
(840 | ) | MINI-Nasdaq-100 Index | $ | (21,000,000 | ) | 7/21/12 | $ | 250.0 | $ | (1,073,100 | ) | ||||||||||||
(748 | ) | MINI-Nasdaq-100 Index | (18,887,000 | ) | 7/21/12 | 252.5 | (779,790 | ) | |||||||||||||||
(795 | ) | MINI-Nasdaq-100 Index | (20,272,500 | ) | 7/21/12 | 255.0 | (673,763 | ) | |||||||||||||||
(746 | ) | MINI-Nasdaq-100 Index | (19,582,500 | ) | 7/21/12 | 262.5 | (266,695 | ) | |||||||||||||||
(823 | ) | MINI-Nasdaq-100 Index | (21,809,500 | ) | 7/21/12 | 265.0 | (216,449 | ) | |||||||||||||||
(781 | ) | MINI-Nasdaq-100 Index | (19,720,250 | ) | 8/18/12 | 252.5 | (974,297 | ) | |||||||||||||||
(908 | ) | MINI-Nasdaq-100 Index | (23,154,000 | ) | 8/18/12 | 255.0 | (982,910 | ) | |||||||||||||||
(777 | ) | MINI-Nasdaq-100 Index | (20,007,750 | ) | 8/18/12 | 257.5 | (720,668 | ) | |||||||||||||||
(156 | ) | S&P 500 Index | (20,280,000 | ) | 7/21/12 | 1,300.0 | (1,021,800 | ) | |||||||||||||||
(294 | ) | S&P 500 Index | (38,955,000 | ) | 7/21/12 | 1,325.0 | (1,299,480 | ) | |||||||||||||||
(149 | ) | S&P 500 Index | (20,115,000 | ) | 7/21/12 | 1,350.0 | (381,440 | ) | |||||||||||||||
(182 | ) | S&P 500 Index | (25,025,000 | ) | 7/21/12 | 1,375.0 | (213,850 | ) | |||||||||||||||
(151 | ) | S&P 500 Index | (19,630,000 | ) | 8/18/12 | 1,300.0 | (1,108,340 | ) | |||||||||||||||
(149 | ) | S&P 500 Index | (19,742,500 | ) | 8/18/12 | 1,325.0 | (804,600 | ) | |||||||||||||||
(163 | ) | S&P 500 Index | (22,005,000 | ) | 8/18/12 | 1,350.0 | (599,840 | ) | |||||||||||||||
(7,662 | ) | Total Call Options Written (premiums received $9,950,027) | $ | (330,186,000 | ) | $ | (11,117,022 | ) |
For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(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) Other Assets Less Liabilities includes the Value of derivative instruments as noted within Investments in Derivatives at June 30, 2012.
(4) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(5) 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
39
JPG
Nuveen Equity Premium and Growth Fund
Portfolio of Investments
June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 99.1% (5) | |||||||||||
Aerospace & Defense – 2.6% | |||||||||||
21,609 | Boeing Company | $ | 1,605,549 | ||||||||
5,209 | Goodrich Corporation | 661,022 | |||||||||
24,637 | Honeywell International Inc. | 1,375,730 | |||||||||
14,434 | Raytheon Company | 816,820 | |||||||||
22,344 | United Technologies Corporation | 1,687,642 | |||||||||
Total Aerospace & Defense | 6,146,763 | ||||||||||
Air Freight & Logistics – 0.9% | |||||||||||
25,839 | United Parcel Service, Inc., Class B | 2,035,080 | |||||||||
Airlines – 0.1% | |||||||||||
13,205 | Lan Airlines S.A., Sponsored ADR | 344,651 | |||||||||
Auto Components – 0.1% | |||||||||||
9,310 | Cooper Tire & Rubber | 163,297 | |||||||||
5,900 | Dana Holding Corporation | 75,579 | |||||||||
Total Auto Components | 238,876 | ||||||||||
Automobiles – 0.4% | |||||||||||
92,502 | Ford Motor Company | 887,094 | |||||||||
Beverages – 2.4% | |||||||||||
43,294 | Coca-Cola Company | 3,385,158 | |||||||||
29,903 | PepsiCo, Inc. | 2,112,946 | |||||||||
Total Beverages | 5,498,104 | ||||||||||
Biotechnology – 0.8% | |||||||||||
11,864 | Celgene Corporation, (2) | 761,194 | |||||||||
20,273 | Gilead Sciences, Inc., (2) | 1,039,599 | |||||||||
10,546 | PDL Biopahrma Inc. | 69,920 | |||||||||
Total Biotechnology | 1,870,713 | ||||||||||
Capital Markets – 1.2% | |||||||||||
53,257 | Charles Schwab Corporation | 688,613 | |||||||||
24,627 | Federated Investors Inc., Class B | 538,100 | |||||||||
4,957 | Goldman Sachs Group, Inc. | 475,178 | |||||||||
46,141 | Morgan Stanley | 673,197 | |||||||||
14,786 | Waddell & Reed Financial, Inc., Class A | 447,720 | |||||||||
Total Capital Markets | 2,822,808 | ||||||||||
Chemicals – 2.4% | |||||||||||
28,233 | Dow Chemical Company | 889,340 | |||||||||
21,896 | E.I. Du Pont de Nemours and Company | 1,107,281 | |||||||||
14,249 | Eastman Chemical Company | 717,722 | |||||||||
11,108 | Monsanto Company | 919,520 | |||||||||
27,207 | Olin Corporation | 568,354 | |||||||||
8,609 | PPG Industries, Inc. | 913,587 | |||||||||
16,530 | RPM International, Inc. | 449,616 | |||||||||
Total Chemicals | 5,565,420 |
Nuveen Investments
40
Shares | Description (1) | Value | |||||||||
Commercial Banks – 2.9% | |||||||||||
12,843 | Comerica Incorporated | $ | 394,409 | ||||||||
12,783 | Fifth Third Bancorp. | 171,292 | |||||||||
11,582 | First Horizon National Corporation | 100,184 | |||||||||
8,574 | FirstMerit Corporation | 141,642 | |||||||||
49,105 | Huntington BancShares Inc. | 314,272 | |||||||||
33,673 | Regions Financial Corporation | 227,293 | |||||||||
54,531 | U.S. Bancorp | 1,753,717 | |||||||||
109,746 | Wells Fargo & Company | 3,669,906 | |||||||||
Total Commercial Banks | 6,772,715 | ||||||||||
Commercial Services & Supplies – 0.2% | |||||||||||
5,330 | Avery Dennison Corporation | 145,722 | |||||||||
14,872 | Deluxe Corporation | 370,908 | |||||||||
8,400 | Kimball International Inc., Class B | 64,680 | |||||||||
Total Commercial Services & Supplies | 581,310 | ||||||||||
Communications Equipment – 2.1% | |||||||||||
119,640 | Cisco Systems, Inc. | 2,054,219 | |||||||||
14,740 | Motorola Solutions Inc. | 709,141 | |||||||||
36,045 | QUALCOMM, Inc. | 2,006,986 | |||||||||
2,984 | Research In Motion Limited, (2) | 22,052 | |||||||||
Total Communications Equipment | 4,792,398 | ||||||||||
Computers & Peripherals – 5.4% | |||||||||||
17,499 | Apple, Inc., (2) | 10,219,416 | |||||||||
30,455 | Dell Inc., (2) | 381,297 | |||||||||
53,151 | EMC Corporation, (2) | 1,362,260 | |||||||||
25,651 | Hewlett-Packard Company | 515,842 | |||||||||
Total Computers & Peripherals | 12,478,815 | ||||||||||
Consumer Finance – 0.5% | |||||||||||
21,390 | American Express Company | 1,245,112 | |||||||||
Containers & Packaging – 0.2% | |||||||||||
18,995 | Packaging Corp. of America | 536,419 | |||||||||
Distributors – 0.5% | |||||||||||
20,246 | Genuine Parts Company | 1,219,822 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
5,562 | Apollo Group, Inc., (2) | 201,289 | |||||||||
Diversified Financial Services – 3.5% | |||||||||||
225,158 | Bank of America Corporation | 1,841,792 | |||||||||
55,290 | Citigroup Inc. | 1,515,499 | |||||||||
2,592 | CME Group, Inc. | 694,941 | |||||||||
4,327 | Intercontinental Exchange, Inc., (2) | 588,385 | |||||||||
87,433 | JP Morgan Chase & Co. | 3,123,981 | |||||||||
9,862 | New York Stock Exchange Euronext | 252,270 | |||||||||
Total Diversified Financial Services | 8,016,868 | ||||||||||
Diversified Telecommunication Services – 3.9% | |||||||||||
3,700 | Alaska Communications Systems Group Inc. | 7,770 | |||||||||
147,120 | AT&T Inc. | 5,246,299 | |||||||||
111,815 | Frontier Communications Corporation | 428,251 | |||||||||
76,024 | Verizon Communications Inc. | 3,378,507 | |||||||||
Total Diversified Telecommunication Services | 9,060,827 |
Nuveen Investments
41
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Electric Utilities – 1.8% | |||||||||||
65,207 | Duke Energy Corporation | $ | 1,503,673 | ||||||||
60,263 | Great Plains Energy Incorporated | 1,290,231 | |||||||||
21,943 | Progress Energy, Inc. | 1,320,310 | |||||||||
Total Electric Utilities | 4,114,214 | ||||||||||
Electrical Equipment – 0.8% | |||||||||||
5,127 | Cooper Industries Inc. | 349,559 | |||||||||
23,705 | Emerson Electric Company | 1,104,179 | |||||||||
6,854 | Rockwell Automation, Inc. | 452,775 | |||||||||
Total Electrical Equipment | 1,906,513 | ||||||||||
Electronic Equipment & Instruments – 0.3% | |||||||||||
48,583 | Corning Incorporated | 628,178 | |||||||||
Energy Equipment & Services – 2.1% | |||||||||||
12,363 | Baker Hughes Incorporated | 508,119 | |||||||||
2,246 | Carbo Ceramics Inc. | 172,336 | |||||||||
31,808 | Halliburton Company | 903,029 | |||||||||
9,961 | National-Oilwell Varco Inc. | 641,887 | |||||||||
12,997 | Noble Corporation | 422,792 | |||||||||
32,514 | Schlumberger Limited | 2,110,484 | |||||||||
1,869 | Tidewater Inc. | 86,647 | |||||||||
Total Energy Equipment & Services | 4,845,294 | ||||||||||
Food & Staples Retailing – 2.1% | |||||||||||
28,828 | CVS Caremark Corporation | 1,347,132 | |||||||||
23,426 | SUPERVALU INC. | 121,347 | |||||||||
40,066 | Wal-Mart Stores, Inc. | 2,793,402 | |||||||||
5,987 | Whole Foods Market, Inc. | 570,681 | |||||||||
Total Food & Staples Retailing | 4,832,562 | ||||||||||
Food Products – 1.3% | |||||||||||
13,960 | Archer-Daniels-Midland Company | 412,099 | |||||||||
33,648 | ConAgra Foods, Inc. | 872,493 | |||||||||
46,877 | Kraft Foods Inc., Class A | 1,810,390 | |||||||||
Total Food Products | 3,094,982 | ||||||||||
Gas Utilities – 0.5% | |||||||||||
13,418 | AGL Resources Inc. | 519,948 | |||||||||
14,636 | ONEOK, Inc. | 619,249 | |||||||||
Total Gas Utilities | 1,139,197 | ||||||||||
Health Care Equipment & Supplies – 0.6% | |||||||||||
28,854 | Boston Scientific Corporation, (2) | 163,602 | |||||||||
3,976 | Hologic Inc., (2) | 71,727 | |||||||||
31,998 | Medtronic, Inc. | 1,239,283 | |||||||||
Total Health Care Equipment & Supplies | 1,474,612 | ||||||||||
Health Care Providers & Services – 2.3% | |||||||||||
13,746 | Aetna Inc. | 532,932 | |||||||||
1,637 | Brookdale Senior Living Inc., (2) | 29,040 | |||||||||
30,290 | Express Scripts, (2) | 1,691,091 | |||||||||
5,614 | Humana Inc. | 434,748 | |||||||||
3,420 | Lincare Holdings | 116,348 | |||||||||
24,649 | Tenet Healthcare Corporation, (2) | 129,161 | |||||||||
28,552 | UnitedHealth Group Incorporated | 1,670,292 | |||||||||
11,994 | Wellpoint Inc. | 765,097 | |||||||||
Total Health Care Providers & Services | 5,368,709 |
Nuveen Investments
42
Shares | Description (1) | Value | |||||||||
Hotels, Restaurants & Leisure – 1.4% | |||||||||||
9,393 | International Game Technology | $ | 147,940 | ||||||||
23,840 | McDonald's Corporation | 2,110,555 | |||||||||
13,188 | MGM Resorts International Inc., (2) | 147,178 | |||||||||
43,350 | The Wendy's Company | 204,612 | |||||||||
4,557 | Tim Hortons Inc. | 239,880 | |||||||||
5,749 | Wyndham Worldwide Corporation | 303,202 | |||||||||
Total Hotels, Restaurants & Leisure | 3,153,367 | ||||||||||
Household Durables – 0.3% | |||||||||||
9,410 | KB Home | 92,218 | |||||||||
7,325 | Lennar Corporation, Class A | 226,416 | |||||||||
16,964 | Newell Rubbermaid Inc. | 307,727 | |||||||||
2,393 | Whirlpool Corporation | 146,356 | |||||||||
Total Household Durables | 772,717 | ||||||||||
Household Products – 1.9% | |||||||||||
5,228 | Colgate-Palmolive Company | 544,235 | |||||||||
9,977 | Kimberly-Clark Corporation | 835,773 | |||||||||
49,271 | Procter & Gamble Company | 3,017,849 | |||||||||
Total Household Products | 4,397,857 | ||||||||||
Industrial Conglomerates – 1.3% | |||||||||||
16,204 | 3M Co. | 1,451,878 | |||||||||
79,853 | General Electric Company | 1,664,137 | |||||||||
Total Industrial Conglomerates | 3,116,015 | ||||||||||
Insurance – 3.1% | |||||||||||
19,845 | Arthur J. Gallagher & Co. | 695,964 | |||||||||
23,775 | Berkshire Hathaway Inc., Class B, (2) | 1,981,171 | |||||||||
16,883 | Fidelity National Title Group Inc., Class A | 325,167 | |||||||||
20,130 | Genworth Financial Inc., Class A, (2) | 113,936 | |||||||||
12,560 | Kemper Corporation | 386,220 | |||||||||
26,486 | Lincoln National Corporation | 579,249 | |||||||||
26,240 | Marsh & McLennan Companies, Inc. | 845,715 | |||||||||
16,516 | Mercury General Corporation | 688,222 | |||||||||
14,302 | Prudential Financial, Inc. | 692,646 | |||||||||
12,126 | Travelers Companies, Inc. | 774,124 | |||||||||
Total Insurance | 7,082,414 | ||||||||||
Internet & Catalog Retail – 0.8% | |||||||||||
7,862 | Amazon.com, Inc., (2) | 1,795,288 | |||||||||
Internet Software & Services – 2.2% | |||||||||||
5,170 | Akamai Technologies, Inc., (2) | 164,148 | |||||||||
27,248 | eBay Inc., (2) | 1,144,688 | |||||||||
5,266 | Google Inc., Class A, (2) | 3,054,649 | |||||||||
22,961 | United Online, Inc. | 96,895 | |||||||||
6,424 | VeriSign, Inc., (2) | 279,894 | |||||||||
27,685 | Yahoo! Inc., (2) | 438,254 | |||||||||
Total Internet Software & Services | 5,178,528 | ||||||||||
IT Services – 3.8% | |||||||||||
33,179 | Automatic Data Processing, Inc. | 1,846,743 | |||||||||
9,387 | Cognizant Technology Solutions Corporation, Class A, (2) | 563,220 | |||||||||
11,474 | Fidelity National Information Services | 391,034 | |||||||||
24,270 | International Business Machines Corporation (IBM) | 4,746,727 | |||||||||
2,687 | Lender Processing Services Inc. | 67,927 | |||||||||
9,814 | Visa Inc., Class A | 1,213,305 | |||||||||
Total IT Services | 8,828,956 |
Nuveen Investments
43
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Leisure Equipment & Products – 0.9% | |||||||||||
28,686 | Mattel, Inc. | $ | 930,574 | ||||||||
14,742 | Polaris Industries Inc. | 1,053,758 | |||||||||
Total Leisure Equipment & Products | 1,984,332 | ||||||||||
Life Sciences Tools & Services – 0.1% | |||||||||||
1,370 | Covance, Inc., (2) | 65,555 | |||||||||
4,213 | Life Technologies Corporation, (2) | 189,543 | |||||||||
Total Life Sciences Tools & Services | 255,098 | ||||||||||
Machinery – 2.5% | |||||||||||
3,706 | Briggs & Stratton Corporation | 64,818 | |||||||||
14,300 | Caterpillar Inc. | 1,214,213 | |||||||||
5,474 | Cummins Inc. | 530,485 | |||||||||
11,992 | Deere & Company | 969,793 | |||||||||
15,241 | Illinois Tool Works, Inc. | 806,096 | |||||||||
5,351 | Pentair, Inc. | 204,836 | |||||||||
11,866 | Snap-on Incorporated | 738,659 | |||||||||
18,194 | Stanley Black & Decker Inc. | 1,170,966 | |||||||||
Total Machinery | 5,699,866 | ||||||||||
Media – 2.2% | |||||||||||
12,544 | CBS Corporation, Class B | 411,192 | |||||||||
90,457 | Comcast Corporation, Class A | 2,891,910 | |||||||||
5,612 | DIRECTV Group, Inc., (2) | 273,978 | |||||||||
8,126 | Gannett Company Inc. | 119,696 | |||||||||
5,070 | Lamar Advertising Company, (2) | 145,002 | |||||||||
28,121 | New York Times, Class A, (2) | 219,344 | |||||||||
51,096 | Regal Entertainment Group, Class A | 703,081 | |||||||||
45,144 | Sirius XM Radio Inc., (2) | 83,516 | |||||||||
24,892 | World Wrestling Entertainment Inc. | 194,655 | |||||||||
Total Media | 5,042,374 | ||||||||||
Metals & Mining – 0.6% | |||||||||||
4,770 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 27,046 | |||||||||
24,931 | Freeport-McMoRan Copper & Gold, Inc. | 849,399 | |||||||||
11,424 | Southern Copper Corporation | 359,970 | |||||||||
3,047 | United States Steel Corporation | 62,768 | |||||||||
Total Metals & Mining | 1,299,183 | ||||||||||
Multiline Retail – 0.7% | |||||||||||
9,458 | Nordstrom, Inc. | 469,968 | |||||||||
20,117 | Target Corporation | 1,170,608 | |||||||||
Total Multiline Retail | 1,640,576 | ||||||||||
Multi-Utilities – 2.2% | |||||||||||
14,000 | Ameren Corporation | 469,560 | |||||||||
52,946 | CenterPoint Energy, Inc. | 1,094,394 | |||||||||
8,627 | Consolidated Edison, Inc. | 536,513 | |||||||||
23,753 | Dominion Resources, Inc. | 1,282,662 | |||||||||
28,718 | Integrys Energy Group, Inc. | 1,633,193 | |||||||||
Total Multi-Utilities | 5,016,322 | ||||||||||
Oil, Gas & Consumable Fuels – 9.5% | |||||||||||
32,095 | Chesapeake Energy Corporation | 596,967 | |||||||||
44,537 | Chevron Corporation | 4,698,654 | |||||||||
21,946 | ConocoPhillips | 1,226,342 | |||||||||
11,317 | CONSOL Energy Inc. | 342,226 |
Nuveen Investments
44
Shares | Description (1) | Value | |||||||||
Oil, Gas & Consumable Fuels (continued) | |||||||||||
6,936 | EOG Resources, Inc. | $ | 625,003 | ||||||||
99,882 | Exxon Mobil Corporation | 8,546,903 | |||||||||
7,395 | Hess Corporation | 321,313 | |||||||||
20,768 | Marathon Oil Corporation | 531,038 | |||||||||
10,284 | Marathon Petroleum Corporation | 461,957 | |||||||||
22,150 | Occidental Petroleum Corporation | 1,899,806 | |||||||||
23,308 | Peabody Energy Corporation | 571,512 | |||||||||
10,973 | Phillips 66 | 364,743 | |||||||||
24,031 | Ship Financial International Limited | 375,605 | |||||||||
17,375 | Southwestern Energy Company, (2) | 554,784 | |||||||||
23,750 | StatoilHydro ASA, Sponsored ADR | 566,675 | |||||||||
18,205 | Valero Energy Corporation | 439,651 | |||||||||
Total Oil, Gas & Consumable Fuels | 22,123,179 | ||||||||||
Personal Products – 0.1% | |||||||||||
21,653 | Avon Products, Inc. | 350,995 | |||||||||
Pharmaceuticals – 7.6% | |||||||||||
46,321 | Abbott Laboratories | 2,986,315 | |||||||||
476 | AstraZeneca PLC, Sponsored ADR | 21,301 | |||||||||
53,176 | Bristol-Myers Squibb Company | 1,911,677 | |||||||||
29,375 | Eli Lilly and Company | 1,260,481 | |||||||||
57,590 | Johnson & Johnson | 3,890,780 | |||||||||
74,356 | Merck & Company Inc. | 3,104,363 | |||||||||
183,187 | Pfizer Inc. | 4,213,301 | |||||||||
5,422 | Sanofi-Aventis, Sponsored ADR | 204,843 | |||||||||
Total Pharmaceuticals | 17,593,061 | ||||||||||
Real Estate Investment Trust – 2.4% | |||||||||||
56,142 | Annaly Capital Management Inc. | 942,063 | |||||||||
35,857 | Brandywine Realty Trust | 442,475 | |||||||||
14,334 | CubeSmart | 167,278 | |||||||||
16,442 | Hospitality Properties Trust | 407,268 | |||||||||
54,457 | Lexington Corporate Properties Trust | 461,251 | |||||||||
49,304 | Senior Housing Properties Trust | 1,100,465 | |||||||||
24,968 | Ventas Inc. | 1,575,980 | |||||||||
19,112 | Weyerhaeuser Company | 427,344 | |||||||||
Total Real Estate Investment Trust | 5,524,124 | ||||||||||
Road & Rail – 0.7% | |||||||||||
13,398 | Union Pacific Corporation | 1,598,515 | |||||||||
Semiconductors & Equipment – 2.4% | |||||||||||
16,358 | Analog Devices, Inc. | 616,206 | |||||||||
35,188 | Applied Materials, Inc. | 403,254 | |||||||||
959 | First Solar Inc., (2) | 14,443 | |||||||||
112,800 | Intel Corporation | 3,006,120 | |||||||||
17,124 | Microchip Technology Incorporated | 566,462 | |||||||||
19,215 | NVIDIA Corporation, (2) | 265,551 | |||||||||
27,352 | Texas Instruments Incorporated | 784,729 | |||||||||
Total Semiconductors & Equipment | 5,656,765 | ||||||||||
Software – 4.0% | |||||||||||
16,588 | Adobe Systems Incorporated, (2) | 536,954 | |||||||||
8,286 | Autodesk, Inc., (2) | 289,927 | |||||||||
170,635 | Microsoft Corporation | 5,219,725 | |||||||||
82,095 | Oracle Corporation | 2,438,222 | |||||||||
5,607 | Salesforce.com, Inc., (2) | 775,224 | |||||||||
Total Software | 9,260,052 |
Nuveen Investments
45
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2012 (Unaudited)
Shares | Description (1) | Value | |||||||||
Specialty Retail – 2.9% | |||||||||||
6,506 | Abercrombie & Fitch Co., Class A | $ | 222,115 | ||||||||
19,409 | American Eagle Outfitters, Inc. | 382,940 | |||||||||
14,239 | Best Buy Co., Inc. | 298,449 | |||||||||
17,529 | Gap, Inc. | 479,593 | |||||||||
35,984 | Home Depot, Inc. | 1,906,792 | |||||||||
18,793 | Limited Brands, Inc. | 799,266 | |||||||||
39,272 | Lowe's Companies, Inc. | 1,116,896 | |||||||||
7,525 | Tiffany & Co. | 398,449 | |||||||||
26,602 | TJX Companies, Inc. | 1,142,024 | |||||||||
Total Specialty Retail | 6,746,524 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.5% | |||||||||||
9,120 | VF Corporation | 1,217,064 | |||||||||
Thrifts & Mortgage Finance – 0.3% | |||||||||||
52,183 | New York Community Bancorp Inc. | 653,853 | |||||||||
Tobacco – 2.3% | |||||||||||
55,859 | Altria Group, Inc. | 1,929,928 | |||||||||
29,796 | Philip Morris International | 2,599,999 | |||||||||
19,686 | Reynolds American Inc. | 883,311 | |||||||||
Total Tobacco | 5,413,238 | ||||||||||
Trading Companies & Distributors – 0.3% | |||||||||||
3,200 | W.W. Grainger, Inc. | 611,968 | |||||||||
Wireless Telecommunication Services – 0.1% | |||||||||||
54,217 | Sprint Nextel Corporation, (2) | 176,746 | |||||||||
2,175 | Vodafone Group PLC, Sponsored ADR | 61,291 | |||||||||
Total Wireless Telecommunication Services | 238,037 | ||||||||||
Total Common Stocks (cost $186,090,724) | 229,969,613 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 5.3% | |||||||||||||||||||
$ | 12,259 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/12, repurchase price $12,259,007, collateralized by $8,930,000 U.S. Treasury Notes, 4.625%, due 2/15/40, value $12,504,483 | 0.010 | % | 7/02/12 | $ | 12,258,997 | ||||||||||||
Total Short-Term Investments (cost $12,258,997) | 12,258,997 | ||||||||||||||||||
Total Investments (cost $198,349,721) – 104.4% | 242,228,610 | ||||||||||||||||||
Other Assets Less Liabilities – (4.4)% (3) | (10,247,300 | ) | |||||||||||||||||
Net Assets – 100% | $ | 231,981,310 |
Nuveen Investments
46
Investments in Derivatives at June 30, 2012
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value | ||||||||||||||||||
Call Options Written – (2.5)% | |||||||||||||||||||||||
(169 | ) | S&P 500 Index | $ | (21,970,000 | ) | 7/21/12 | $ | 1,300 | $ | (1,106,950 | ) | ||||||||||||
(322 | ) | S&P 500 Index | (42,665,000 | ) | 7/21/12 | 1,325 | (1,423,240 | ) | |||||||||||||||
(156 | ) | S&P 500 Index | (21,060,000 | ) | 7/21/12 | 1,350 | (399,360 | ) | |||||||||||||||
(184 | ) | S&P 500 Index | (25,300,000 | ) | 7/21/12 | 1,375 | (216,200 | ) | |||||||||||||||
(175 | ) | S&P 500 Index | (22,750,000 | ) | 8/18/12 | 1,300 | (1,284,500 | ) | |||||||||||||||
(157 | ) | S&P 500 Index | (20,802,500 | ) | 8/18/12 | 1,325 | (847,800 | ) | |||||||||||||||
(173 | ) | S&P 500 Index | (23,355,000 | ) | 8/18/12 | 1,350 | (636,640 | ) | |||||||||||||||
(1,336 | ) | Total Call Options Writen (premiums received $5,207,140) | $ | (177,902,500 | ) | $ | (5,914,690 | ) |
For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(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) Other Assets Less Liabilities includes the Value of derivative instruments as noted within Investments in Derivatives at June 30, 2012.
(4) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
(5) 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
47
Statement of
ASSETS & LIABILITIES
June 30, 2012 (Unaudited)
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at value (cost $424,006,459, $686,366,386, $245,476,554 and $198,349,721, respectively) | $ | 534,184,575 | $ | 918,599,893 | $ | 365,294,137 | $ | 242,228,610 | |||||||||||
Cash denominated in foreign currencies (cost $—, $2,856, $—and $—, respectively) | — | 2,887 | — | — | |||||||||||||||
Receivables: | |||||||||||||||||||
Dividends and interest | 778,477 | 1,047,249 | 320,800 | 329,460 | |||||||||||||||
Investments sold | — | — | 1,294 | — | |||||||||||||||
Reclaims | 790 | — | 145 | — | |||||||||||||||
Other assets | 53,017 | 73,699 | 33,336 | 21,992 | |||||||||||||||
Total assets | 535,016,859 | 919,723,728 | 365,649,712 | 242,580,062 | |||||||||||||||
Liabilities | |||||||||||||||||||
Call options written, at value (premiums received $14,212,430, $24,350,565, $9,950,027 and $5,207,140, respectively) | 16,204,800 | 27,988,025 | 11,117,022 | 5,914,690 | |||||||||||||||
Dividends payable | 9,877,090 | 16,928,385 | 6,967,008 | 4,431,606 | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Management fees | 330,356 | 561,013 | 245,707 | 159,754 | |||||||||||||||
Other | 188,189 | 337,814 | 131,142 | 92,702 | |||||||||||||||
Total liabilities | 26,600,435 | 45,815,237 | 18,460,879 | 10,598,752 | |||||||||||||||
Net assets | $ | 508,416,424 | $ | 873,908,491 | $ | 347,188,833 | $ | 231,981,310 | |||||||||||
Shares outstanding | 38,470,035 | 66,492,444 | 25,711,334 | 16,164,579 | |||||||||||||||
Net asset value per share outstanding | $ | 13.22 | $ | 13.14 | $ | 13.50 | $ | 14.35 | |||||||||||
Net assets consist of: | |||||||||||||||||||
Shares, $.01 par value per share | $ | 384,700 | $ | 664,924 | $ | 257,113 | $ | 161,646 | |||||||||||
Paid-in surplus | 483,880,779 | 772,680,680 | 283,295,661 | 238,968,734 | |||||||||||||||
Undistributed (Over-distribution of) net investment income | (16,770,395 | ) | (31,818,770 | ) | (13,224,828 | ) | (7,242,788 | ) | |||||||||||
Accumulated net realized gain (loss) | (67,264,417 | ) | (96,214,421 | ) | (41,789,701 | ) | (43,077,621 | ) | |||||||||||
Net unrealized appreciation (depreciation) | 108,185,757 | 228,596,078 | 118,650,588 | 43,171,339 | |||||||||||||||
Net assets | $ | 508,416,424 | $ | 873,908,491 | $ | 347,188,833 | $ | 231,981,310 | |||||||||||
Authorized shares | Unlimited | Unlimited | Unlimited | Unlimited |
See accompanying notes to financial statements.
Nuveen Investments
48
Statement of
OPERATIONS
Six Months Ended June 30, 2012 (Unaudited)
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 $2,790, $21,465, $9,324 and $9,484, respectively) | $ | 6,349,465 | $ | 9,113,185 | $ | 3,112,115 | $ | 2,917,889 | |||||||||||
Interest | 1,065 | 2,185 | 879 | 371 | |||||||||||||||
Total investment income | 6,350,530 | 9,115,370 | 3,112,994 | 2,918,260 | |||||||||||||||
Expenses | |||||||||||||||||||
Management fees | 2,206,503 | 3,765,433 | 1,512,457 | 986,173 | |||||||||||||||
Shareholders' servicing agent fees and expenses | 933 | 1,312 | 717 | 616 | |||||||||||||||
Custodian's fees and expenses | 41,151 | 66,309 | 33,646 | 23,363 | |||||||||||||||
Trustees' fees and expenses | 7,479 | 12,805 | 5,179 | 3,517 | |||||||||||||||
Professional fees | 31,708 | 55,546 | 30,553 | 22,265 | |||||||||||||||
Shareholders' reports — printing and mailing expenses | 53,550 | 94,257 | 29,222 | 20,409 | |||||||||||||||
Stock exchange listing fees | 6,017 | 10,500 | 4,203 | 4,203 | |||||||||||||||
Investor relations expense | 64,706 | 111,437 | 37,881 | 26,963 | |||||||||||||||
Other expenses | 32,702 | 71,304 | 68,356 | 20,905 | |||||||||||||||
Total expenses before custodian fee credit and expense reimbursement | 2,444,749 | 4,188,903 | 1,722,214 | 1,108,414 | |||||||||||||||
Custodian fee credit | (276 | ) | (437 | ) | (203 | ) | (90 | ) | |||||||||||
Expense reimbursement | (176,909 | ) | (357,110 | ) | — | — | |||||||||||||
Net expenses | 2,267,564 | 3,831,356 | 1,722,011 | 1,108,324 | |||||||||||||||
Net investment income (loss) | 4,082,966 | 5,284,014 | 1,390,983 | 1,809,936 | |||||||||||||||
Realized and Unrealized Gain (Loss) | |||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 4,082,596 | 20,062,568 | 16,471,717 | 1,180,579 | |||||||||||||||
Call options written | (10,609,879 | ) | (26,570,747 | ) | (14,561,759 | ) | (3,614,402 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 37,913,365 | 59,725,390 | 22,045,582 | 16,913,217 | |||||||||||||||
Call options written | (2,138,500 | ) | (6,818,759 | ) | (3,556,075 | ) | (896,904 | ) | |||||||||||
Net realized and unrealized gain (loss) | 29,247,582 | 46,398,452 | 20,399,465 | 13,582,490 | |||||||||||||||
Net increase (decrease) in net assets from operations | $ | 33,330,548 | $ | 51,682,466 | $ | 21,790,448 | $ | 15,392,426 |
See accompanying notes to financial statements.
Nuveen Investments
49
Statement of
CHANGES in NET ASSETS (Unaudited)
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Six Months Ended 6/30/12 | Year Ended 12/31/11 | Six Months Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income (loss) | $ | 4,082,966 | $ | 8,760,447 | $ | 5,284,014 | $ | 12,064,655 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 4,082,596 | 16,618,497 | 20,062,568 | 35,216,557 | |||||||||||||||
Call options written | (10,609,879 | ) | 6,090,806 | (26,570,747 | ) | 14,882,498 | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 37,913,365 | (8,413,092 | ) | 59,725,390 | (21,844,932 | ) | |||||||||||||
Call options written | (2,138,500 | ) | 4,282,450 | (6,818,759 | ) | 8,297,702 | |||||||||||||
Net increase (decrease) in net assets from operations | 33,330,548 | 27,339,108 | 51,682,466 | 48,616,480 | |||||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From and in excess of net investment income | (20,853,361 | ) | — | (37,102,784 | ) | — | |||||||||||||
From net investment income | — | (28,891,374 | ) | — | (68,934,322 | ) | |||||||||||||
Return of capital | — | (15,989,671 | ) | — | (11,166,014 | ) | |||||||||||||
Decrease in net assets from distributions to shareholders | (20,853,361 | ) | (44,881,045 | ) | (37,102,784 | ) | (80,100,336 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Cost of shares repurchased or retired | (146,097 | ) | (1,962,247 | ) | — | (704,719 | ) | ||||||||||||
Net proceeds from shares issued to shareholders due to reinvestment of distributions | — | — | — | — | |||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (146,097 | ) | (1,962,247 | ) | — | (704,719 | ) | ||||||||||||
Net increase (decrease) in net assets | 12,331,090 | (19,504,184 | ) | 14,579,682 | (32,188,575 | ) | |||||||||||||
Net assets at the beginning of period | 496,085,334 | 515,589,518 | 859,328,809 | 891,517,384 | |||||||||||||||
Net assets at the end of period | $ | 508,416,424 | $ | 496,085,334 | $ | 873,908,491 | $ | 859,328,809 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (16,770,395 | ) | $ | — | $ | (31,818,770 | ) | $ | — |
See accompanying notes to financial statements.
Nuveen Investments
50
Statement of
CHANGES in NET ASSETS (Unaudited) (continued)
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Six Months Ended 6/30/12 | Year Ended 12/31/11 | Six Months Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income (loss) | $ | 1,390,983 | $ | 3,021,132 | $ | 1,809,936 | $ | 3,840,600 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 16,471,717 | 8,482,789 | 1,180,579 | (1,541,071 | ) | ||||||||||||||
Call options written | (14,561,759 | ) | 7,418,649 | (3,614,402 | ) | 2,537,159 | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 22,045,582 | (1,596,017 | ) | 16,913,217 | 3,980,788 | ||||||||||||||
Call options written | (3,556,075 | ) | 3,585,041 | (896,904 | ) | 1,703,631 | |||||||||||||
Net increase (decrease) in net assets from operations | 21,790,448 | 20,911,594 | 15,392,426 | 10,521,107 | |||||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From and in excess of net investment income | (14,615,811 | ) | — | (9,052,724 | ) | — | |||||||||||||
From net investment income | — | (22,520,322 | ) | — | (6,455,660 | ) | |||||||||||||
Return of capital | — | (8,943,289 | ) | — | (11,765,192 | ) | |||||||||||||
Decrease in net assets from distributions to shareholders | (14,615,811 | ) | (31,463,611 | ) | (9,052,724 | ) | (18,220,852 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Cost of shares repurchased or retired | (514,454 | ) | (1,350,259 | ) | (22,856 | ) | (1,730,753 | ) | |||||||||||
Net proceeds from shares issued to shareholders due to reinvestment of distributions | — | — | — | — | |||||||||||||||
Net increase (decrease) in net assets from capital share transactions | (514,454 | ) | (1,350,259 | ) | (22,856 | ) | (1,730,753 | ) | |||||||||||
Net increase (decrease) in net assets | 6,660,183 | (11,902,276 | ) | 6,316,846 | (9,430,498 | ) | |||||||||||||
Net assets at the beginning of period | 340,528,650 | 352,430,926 | 225,664,464 | 235,094,962 | |||||||||||||||
Net assets at the end of period | $ | 347,188,833 | $ | 340,528,650 | $ | 231,981,310 | $ | 225,664,464 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (13,224,828 | ) | $ | — | $ | (7,242,788 | ) | $ | — |
See accompanying notes to financial statements.
Nuveen Investments
51
Financial
HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Investment Income | Capital Gains | Return of Capital | Total | Offering Costs | Discount From Shares Repurchased and Retired | Ending Net Asset Value | Ending Market Value | ||||||||||||||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012(e) | $ | 12.89 | $ | .11 | $ | .76 | $ | .87 | $ | (.54 | )*** | $ | — | $ | — | $ | (.54 | ) | $ | — | $ | — | ** | $ | 13.22 | $ | 12.10 | ||||||||||||||||||||||||
2011 | 13.34 | .23 | .48 | .71 | (.75 | ) | — | (.41 | ) | (1.16 | ) | — | — | ** | 12.89 | 11.18 | |||||||||||||||||||||||||||||||||||
2010 | 13.08 | .26 | 1.25 | 1.51 | (.27 | ) | — | (.98 | ) | (1.25 | ) | — | — | 13.34 | 12.76 | ||||||||||||||||||||||||||||||||||||
2009 | 12.75 | .27 | 1.35 | 1.62 | (.28 | ) | (.24 | ) | (.77 | ) | (1.29 | ) | — | — | ** | 13.08 | 13.00 | ||||||||||||||||||||||||||||||||||
2008 | 18.30 | .39 | (4.41 | ) | (4.02 | ) | (.39 | ) | (1.14 | ) | — | (1.53 | ) | — | — | ** | 12.75 | 10.74 | |||||||||||||||||||||||||||||||||
2007 | 18.59 | .44 | .98 | 1.42 | (.54 | ) | — | (1.17 | ) | (1.71 | ) | — | — | 18.30 | 16.41 | ||||||||||||||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012(e) | 12.92 | .08 | .70 | .78 | (.56 | )*** | — | — | (.56 | ) | — | — | 13.14 | 11.90 | |||||||||||||||||||||||||||||||||||||
2011 | 13.39 | .18 | .55 | .73 | (1.03 | ) | — | (.17 | ) | (1.20 | ) | — | — | ** | 12.92 | 11.42 | |||||||||||||||||||||||||||||||||||
2010 | 13.30 | .18 | 1.21 | 1.39 | (.18 | ) | — | (1.12 | ) | (1.30 | ) | — | — | 13.39 | 12.88 | ||||||||||||||||||||||||||||||||||||
2009 | 12.69 | .21 | 1.73 | 1.94 | (.22 | ) | — | (1.12 | ) | (1.34 | ) | — | .01 | 13.30 | 13.20 | ||||||||||||||||||||||||||||||||||||
2008 | 18.60 | .30 | (4.62 | ) | (4.32 | ) | (.62 | ) | (.97 | ) | — | (1.59 | ) | — | — | ** | 12.69 | 10.68 | |||||||||||||||||||||||||||||||||
2007 | 18.36 | .36 | 1.66 | 2.02 | (.35 | ) | — | (1.43 | ) | (1.78 | ) | — | — | 18.60 | 16.34 | ||||||||||||||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012(e) | 13.22 | .05 | .80 | .85 | (.57 | )*** | — | — | (.57 | ) | — | — | ** | 13.50 | 12.02 | ||||||||||||||||||||||||||||||||||||
2011 | 13.62 | .12 | .70 | .82 | (.87 | ) | — | (.35 | ) | (1.22 | ) | — | — | ** | 13.22 | 11.46 | |||||||||||||||||||||||||||||||||||
2010 | 13.54 | .11 | 1.27 | 1.38 | (.11 | ) | — | (1.19 | ) | (1.30 | ) | — | — | 13.62 | 12.90 | ||||||||||||||||||||||||||||||||||||
2009 | 12.47 | .13 | 2.25 | 2.38 | (.14 | ) | — | (1.18 | ) | (1.32 | ) | — | .01 | 13.54 | 13.07 | ||||||||||||||||||||||||||||||||||||
2008 | 18.57 | .17 | (4.67 | ) | (4.50 | ) | (.92 | ) | (.69 | ) | — | (1.61 | ) | — | .01 | 12.47 | 10.34 | ||||||||||||||||||||||||||||||||||
2007 | 18.35 | .22 | 1.82 | 2.04 | (.21 | ) | — | (1.61 | ) | (1.82 | ) | — | — | 18.57 | 16.45 | ||||||||||||||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2012(e) | 13.96 | .11 | .84 | .95 | (.56 | )*** | — | — | (.56 | ) | — | — | ** | 14.35 | 12.79 | ||||||||||||||||||||||||||||||||||||
2011 | 14.41 | .24 | .42 | .66 | (.40 | ) | — | (.72 | ) | (1.12 | ) | — | .01 | 13.96 | 12.07 | ||||||||||||||||||||||||||||||||||||
2010 | 13.87 | .24 | 1.42 | 1.66 | (.24 | ) | — | (.88 | ) | (1.12 | ) | — | — | 14.41 | 13.85 | ||||||||||||||||||||||||||||||||||||
2009 | 13.17 | .26 | 1.55 | 1.81 | (.27 | ) | (.21 | ) | (.64 | ) | (1.12 | ) | — | .01 | 13.87 | 13.09 | |||||||||||||||||||||||||||||||||||
2008 | 19.31 | .36 | (5.02 | ) | (4.66 | ) | (.40 | ) | (1.09 | ) | — | (1.49 | ) | — | .01 | 13.17 | 10.77 | ||||||||||||||||||||||||||||||||||
2007 | 19.60 | .68 | .65 | 1.33 | (.79 | ) | — | (.83 | ) | (1.62 | ) | — | ** | — | 19.31 | 17.13 |
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Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||
Total Returns | Ratios to Average Net Assets Before Reimbursement(d) | Ratios to Average Net Assets After Reimbursement(c)(d) | |||||||||||||||||||||||||||||||||
Based on Market Value(b) | Based on Net Asset Value(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2012(e) | 13.15 | % | 6.79 | % | $ | 508,416 | .97 | %* | 1.55 | %* | .90 | %* | 1.62 | %* | 2 | % | |||||||||||||||||||
2011 | (3.41 | ) | 5.63 | 496,085 | .97 | 1.60 | .84 | 1.73 | 4 | ||||||||||||||||||||||||||
2010 | 8.10 | 12.22 | 515,590 | .98 | 1.78 | .77 | 1.99 | 3 | |||||||||||||||||||||||||||
2009 | 35.46 | 13.74 | 502,488 | .99 | 1.93 | .71 | 2.21 | 9 | |||||||||||||||||||||||||||
2008 | (26.73 | ) | (23.27 | ) | 491,706 | .97 | 2.08 | .67 | 2.39 | 6 | |||||||||||||||||||||||||
2007 | (6.07 | ) | 7.80 | 707,933 | .95 | 2.05 | .65 | 2.35 | 7 | ||||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2012(e) | 9.09 | 6.03 | 873,908 | .96 | * | 1.13 | * | .88 | * | 1.21 | * | 5 | |||||||||||||||||||||||
2011 | (2.02 | ) | 5.78 | 859,329 | .96 | 1.23 | .81 | 1.38 | 4 | ||||||||||||||||||||||||||
2010 | 7.85 | 11.17 | 891,517 | .97 | 1.15 | .75 | 1.37 | 3 | |||||||||||||||||||||||||||
2009 | 38.49 | 16.39 | 878,321 | .98 | 1.35 | .68 | 1.65 | 4 | |||||||||||||||||||||||||||
2008 | (26.64 | ) | (24.65 | ) | 841,579 | .96 | 1.52 | .66 | 1.82 | 8 | |||||||||||||||||||||||||
2007 | (3.03 | ) | 11.35 | 1,237,527 | .94 | 1.62 | .64 | 1.93 | 4 | ||||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2012(e) | 9.89 | 6.43 | 347,189 | .99 | * | .80 | * | N/A | N/A | 3 | |||||||||||||||||||||||||
2011 | (1.82 | ) | 6.35 | 340,529 | .98 | .83 | .94 | % | .87 | % | 14 | ||||||||||||||||||||||||
2010 | 8.95 | 10.83 | 352,431 | 1.00 | .66 | .85 | .80 | 5 | |||||||||||||||||||||||||||
2009 | 41.37 | 20.21 | 349,898 | 1.01 | .82 | .81 | 1.02 | 10 | |||||||||||||||||||||||||||
2008 | (29.22 | ) | (25.63 | ) | 323,971 | .99 | .88 | .79 | 1.08 | 12 | |||||||||||||||||||||||||
2007 | (5.15 | ) | 11.50 | 484,998 | .98 | .99 | .78 | 1.19 | 3 | ||||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2012(e) | 10.56 | 6.80 | 231,981 | .96 | * | 1.57 | * | N/A | N/A | — | **** | ||||||||||||||||||||||||
2011 | (4.88 | ) | 4.89 | 225,664 | .96 | 1.66 | N/A | N/A | 4 | ||||||||||||||||||||||||||
2010 | 14.90 | 12.60 | 235,095 | .98 | 1.75 | N/A | N/A | 3 | |||||||||||||||||||||||||||
2009 | 33.63 | 14.77 | 226,187 | .98 | 1.99 | N/A | N/A | 6 | |||||||||||||||||||||||||||
2008 | (30.09 | ) | (25.38 | ) | 216,044 | .96 | 2.13 | N/A | N/A | 12 | |||||||||||||||||||||||||
2007 | (3.55 | ) | 6.86 | 319,300 | .95 | 3.40 | N/A | N/A | 26 |
(a) Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b) 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.
(c) After expense reimbursement from Adviser, where applicable. As of May 31, 2011, the Advisor is no longer reimbursing Equity Premium Advantage (JLA) for any fees or expenses.
(d) Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable.
(e) For the six months ended June 30, 2012.
N/A Fund does not have, or no longer has, a contractual reimbursement agreement with the Adviser.
* Annualized.
** Rounds to less than $.01 per share.
*** Represents distributions paid "From and in excess of net investment income" for the six months ended June 30, 2012.
**** Rounds to less than 1%.
See accompanying notes to financial statements.
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Notes to
FINANCIAL STATEMENTS (Unaudited)
1. General Information and Significant Accounting Policies
General Information
The funds covered in this report and their corresponding NYSE MKT (formerly known as NYSE Amex) 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) (each a "Fund" and collectively, the "Funds"). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered 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 (as defined in Footnote 7—Management Fees and Other Transactions with Affiliates) in a diversified equity portfolio that seeks to substantially replicate price movements of the Standard & Poor's ("S&P") 500® Index. The Fund also uses an index option strategy of writing (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® Index and the NASDAQ-100 Index, respectively. The Fund also uses an index option strategy of writing (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® Index and the NASDAQ-100 Index, respectively. The Fund also uses an index option strategy of writing (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® Index. The Fund also uses an index option strategy of writing (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.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted principles ("U.S. GAAP").
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market ("NASDAQ") are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the last quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts ("ADR") held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time foreign currencies may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange ("NYSE"). These securities generally represents a transfer from a Level 1 to a Level 2 security.
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Index options are valued at the mean of the closing bid and ask prices. 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 value 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. Index options are generally classified as Level 1.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds' Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security's fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds' Board of Trustees or its designee.
Refer to Footnote 2—Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
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.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its investment company taxable income to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies ("RICs"). 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.
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Dividends and Distributions to Shareholders
Each Fund makes 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 attributed to net unrealized gains, if any, is distributed from the Fund's assets and is treated by shareholders as a non-taxable distribution ("Return of Capital") 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 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 financial statements contained in the annual report as of December 31 each year.
The distributions made by the Fund during the six months ended June 30, 2012, are provisionally classified as being "From and in excess of net investment income," and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital for tax purposes after the fiscal year end. For purposes of calculating "Undistributed (over-distribution of) net investment income" as of June 30, 2012, the distribution amounts provisionally classified as "From and in excess of net investment income" were treated as being entirely from net investment income. Consequently, the financial statements at June 30, 2012 reflect an over-distribution of net investment income.
The actual character of distributions made by the Funds during the fiscal year ended December 31, 2011 are reflected in the accompanying financial statements.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency forward, 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 spot (i.e. cash) basis 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 and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. ET. Investments transactions, 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 Funds and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of "Net realized gain (loss) from investments and foreign currency," on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of "Change in net unrealized appreciation (depreciation) of investments and foreign currency," on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with foreign currency exchange contracts, futures, options purchased, options written and swaps are recognized as a component of "Change in net unrealized appreciation (depreciation) of
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foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively" on the Statement of Operations, when applicable.
Options Transactions
Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and is authorized to write (sell) call options in an attempt to manage such risk. When the 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 is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options written during the fiscal period are recognized as a component of "Change in net unrealized appreciation (depreciation) of call options written" on the Statement of Operations. When an option is exercised or 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 executing a closing purchase transaction, including commission, is recognized as a component of "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 also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
During the six months ended June 30, 2012, each Fund wrote call options on a broad equity index, while investing in a portfolio of equities, to enhance returns while foregoing some upside potential of its equity portfolio.
The average notional amount of call options written during the six months ended June 30, 2012, for each Fund 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* | $ | (483,858,333 | ) | $ | (829,295,083 | ) | $ | (330,140,000 | ) | $ | (177,910,833 | ) |
* The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.
Refer to Footnote 3—Derivative Instruments and Hedging Activities and Footnote 5—Investment Transactions for further details on options activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, 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, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Fund Advisors, Inc. (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 fluctuate, either up or down, by at least the pre-determined 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 counterparty 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.
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 — Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 — Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 — Prices are determined using significant unobservable inputs (including management's assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of the end of the reporting period:
Equity Premium Income (JPZ) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 505,480,738 | $ | — | $ | — | $ | 505,480,738 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 28,703,837 | — | 28,703,837 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (16,204,800 | ) | — | — | (16,204,800 | ) | |||||||||||||
Total | $ | 489,275,938 | $ | 28,703,837 | $ | — | $ | 517,979,775 | |||||||||||
Equity Premium Opportunity (JSN) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 858,835,557 | $ | — | $ | — | $ | 858,835,557 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 59,764,336 | — | 59,764,336 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (27,988,025 | ) | — | — | (27,988,025 | ) | |||||||||||||
Total | $ | 830,847,532 | $ | 59,764,336 | $ | — | $ | 890,611,868 |
* Refer to the Fund's Portfolio of Investments for industry classifications.
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Equity Premium Advantage (JLA) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 340,278,311 | $ | — | $ | — | $ | 340,278,311 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 25,015,826 | — | 25,015,826 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (11,117,022 | ) | — | — | (11,117,022 | ) | |||||||||||||
Total | $ | 329,161,289 | $ | 25,015,826 | $ | — | $ | 354,177,115 | |||||||||||
Equity Premium and Growth (JPG) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 229,969,613 | $ | — | $ | — | $ | 229,969,613 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 12,258,997 | — | 12,258,997 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (5,914,690 | ) | — | — | (5,914,690 | ) | |||||||||||||
Total | $ | 224,054,923 | $ | 12,258,997 | $ | — | $ | 236,313,920 |
* Refer to the Fund's Portfolio of Investments for industry classifications.
The Nuveen funds' Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds' pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser's dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer's financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts' research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. 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 June 30, 2012, 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 | $ | (16,204,800 | ) |
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 | $ | (27,988,025 | ) |
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 | $ | (11,117,022 | ) |
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 | $ | (5,914,690 | ) |
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2012, 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 | $ | (10,609,879 | ) | $ | (26,570,747 | ) | $ | (14,561,759 | ) | $ | (3,614,402 | ) | |||||||
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 | $ | (2,138,500 | ) | $ | (6,818,759 | ) | $ | (3,556,075 | ) | $ | (896,904 | ) |
4. Fund Shares
Transactions in shares were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Six Months Ended 6/30/12 | Year Ended 12/31/11 | Six Months Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Shares repurchased and retired | (12,600 | ) | (178,376 | ) | — | (66,600 | ) | ||||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased and retired | $ | 11.57 | $ | 10.98 | $ | — | $ | 10.56 | |||||||||||
Discount per share repurchased and retired | 11.88 | % | 13.69 | % | — | % | 15.38 | % |
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Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Six Months Ended 6/30/12 | Year Ended 12/31/11 | Six Months Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Shares repurchased and retired | (43,477 | ) | (119,189 | ) | (1,800 | ) | (145,263 | ) | |||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased and retired | $ | 11.80 | $ | 11.31 | $ | 12.68 | $ | 11.89 | |||||||||||
Discount per share repurchased and retired | 12.72 | % | 13.39 | % | 11.14 | % | 13.56 | % |
5. Investment Transactions
Purchases and sales (excluding short-term investments and derivative transactions) during the six months ended June 30, 2012, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Purchases | $ | 9,626,545 | $ | 44,652,466 | $ | 11,584,498 | $ | 810,613 | |||||||||||
Sales | 31,271,250 | 104,434,494 | 46,268,783 | 11,419,364 |
Transactions in call options written during the six months ended June 30, 2012, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||||||||
Options outstanding, beginning of period | 3,800 | $ | 23,565,960 | 13,873 | $ | 39,105,309 | |||||||||||||
Options written | 15,326 | 55,128,955 | 55,529 | 103,625,582 | |||||||||||||||
Options terminated in closing purchase transactions | (15,454 | ) | (64,482,485 | ) | (55,603 | ) | (117,036,800 | ) | |||||||||||
Options expired | — | — | (996 | ) | (1,343,526 | ) | |||||||||||||
Options outstanding, end of period | 3,672 | $ | 14,212,430 | 12,803 | $ | 24,350,565 | |||||||||||||
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||||||||
Options outstanding, beginning of period | 8,649 | $ | 14,772,216 | 1,408 | $ | 8,825,084 | |||||||||||||
Options written | 33,785 | 45,020,117 | 5,614 | 20,238,286 | |||||||||||||||
Options terminated in closing purchase transactions | (33,991 | ) | (48,771,288 | ) | (5,686 | ) | (23,856,230 | ) | |||||||||||
Options expired | (781 | ) | (1,071,018 | ) | — | — | |||||||||||||
Options outstanding, end of period | 7,662 | $ | 9,950,027 | 1,336 | $ | 5,207,140 |
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 as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At June 30, 2012, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Cost of investments | $ | 424,418,704 | $ | 686,574,939 | $ | 245,477,319 | $ | 198,371,052 | |||||||||||
Gross unrealized: | |||||||||||||||||||
Appreciation | $ | 161,842,804 | $ | 280,242,775 | $ | 124,217,251 | $ | 66,012,830 | |||||||||||
Depreciation | (52,076,933 | ) | (48,217,821 | ) | (4,400,433 | ) | (22,155,272 | ) | |||||||||||
Net unrealized appreciation (depreciation) of investments | $ | 109,765,871 | $ | 232,024,954 | $ | 119,816,818 | $ | 43,857,558 |
Permanent differences, primarily due to Real Estate Investment Trust (REIT) adjustments, return of capital distributions and tax basis earnings and profit adjustments resulted in reclassifications among the Funds' components of net assets at December 31, 2011, the Funds' last tax year-end, as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Paid-in surplus | $ | (20,215,038 | ) | $ | (56,976,889 | ) | $ | (19,536,329 | ) | $ | (2,660,546 | ) | |||||||
Undistributed (Over-distribution) of net investment income | 20,130,927 | 56,869,667 | 19,499,190 | 2,615,060 | |||||||||||||||
Accumulated net realized gain (loss) | 84,111 | 107,222 | 37,139 | 45,486 |
The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2011, the Funds' last 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 | — | — | — | — |
The tax character of distributions paid during the Funds' last tax year ended December 31, 2011 was designated for purposes of the dividends paid deduction as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Distributions from net ordinary income* | $ | 28,891,374 | $ | 68,934,322 | $ | 22,520,322 | $ | 6,455,660 | |||||||||||
Distributions from net long-term capital gains | — | — | — | — | |||||||||||||||
Return of capital | 15,989,671 | 11,166,014 | 8,943,289 | 11,765,192 |
* Net ordinary income consists of net taxable income derived from dividends and interest, and current year earnings and profits attributed to realized gains.
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At December 31, 2011, the Funds' last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Expiration: | |||||||||||||||||||
December 31, 2017 | $ | 55,219,862 | $ | 47,988,639 | $ | 26,956,858 | $ | 30,503,738 | |||||||||||
December 31, 2018 | 4,958,903 | 38,327,754 | 14,352,958 | 7,655,485 | |||||||||||||||
Total | $ | 60,178,765 | $ | 86,316,393 | $ | 41,309,816 | $ | 38,159,223 |
During the Funds' last tax year ended December 31, 2011, the following Funds utilized their capital loss carryforwards as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Utilized capital loss carryforwards | $ | 20,223,084 | $ | 56,964,259 | $ | 19,523,618 | $ | 2,667,174 |
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted, which changed various technical rules governing the tax treatment of RICs. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
The Act also contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
During the Funds' last tax year ended December 31, 2011, there were no post-enactment capital losses generated by any of the Funds.
The Funds have elected to defer losses incurred from November 1, 2011 through December 31, 2011, the Fund's last tax year end, in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Fund has elected to defer losses as follows:
Equity Premium and Growth (JPG) | |||||||
Post-October capital losses | $ | 2,273,890 | |||||
Late-year ordinary losses | — |
7. Management Fees and Other Transactions with Affiliates
Each Fund's management fee consists of two components–a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Funds as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
Average Daily 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 |
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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, is calculated according to the following schedule:
Complex-Level Managed 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 |
* For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute "eligible assets." Eligible assets do not include assets attributable to investments in other Nuveen Funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser's assumption of the management of the former First American Funds effective January 1, 2011. As of June 30, 2012, the complex-level fee rate for each of these Funds was .1731%.
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for each Fund's overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Gateway Investment Advisers, LLC ("Gateway"), under which Gateway manages the investment portfolios of the Funds. Gateway is compensated for its services to the Funds from the management fees 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 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.
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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.
8. New Accounting Pronouncements
Financial Accounting Standards Board ("FASB") Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In December 2011, the FASB issued Accounting Standards Update ("ASU") No. 2011-11 ("ASU No. 2011-11") to enhance disclosures about financial instruments and derivative instruments that are subject to offsetting ("netting") on the Statement of Assets and Liabilities. This information will enable users of the entity's financial statements to evaluate the effect or potential effect of netting arrangements on the entity's financial position. ASU No. 2011-11 is effective prospectively during interim or annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statements amounts and footnote disclosures, if any.
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Annual Investment Management
Agreement Approval Process (Unaudited)
The Board of Trustees (each, a "Board" and each Trustee, a "Board Member") of the Funds, including the Board Members who are not parties to the Funds' advisory or sub-advisory agreements or "interested persons" of any such parties (the "Independent Board Members"), is responsible for approving the advisory agreements (each, an "Investment Management Agreement") between each Fund and Nuveen Fund Advisors, Inc. (the "Advisor") and the sub-advisory agreements (each, a "Sub-Advisory Agreement") between the Advisor and Gateway Investment Advisers, LLC (the "Sub-Advisor") (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the "Advisory Agreements") and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the "1940 Act"), the Board is required to consider the continuation of the Advisory Agreements on an annual basis. Accordingly, at an in-person meeting held on May 21-23, 2012 (the "May Meeting"), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Advisor and the Sub-Advisor (the Advisor and the Sub-Advisor are collectively, the "Fund Advisers" and each, a "Fund Adviser"). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks, a comparison of Fund fees and expenses relative to peers, a description and assessment of shareholder service levels for the Funds, a summary of the performance of certain service providers, a review of product initiatives and shareholder communications and an analysis of the Advisor's profitability with comparisons to comparable peers in the managed fund business. As part of their annual review, the Board also held a separate meeting on April 18-19, 2012, to review the Funds' investment performance and consider an analysis provided by the Advisor of the Sub-Advisor which generally evaluated the Sub-Advisor's investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of their review of the materials and discussions, the Board presented the Advisor with questions and the Advisor responded.
The materials and information prepared in connection with the annual review of the Advisory Agreements supplement the information and analysis provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through
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66
its committees, regularly reviews the performance and various services provided by the Advisor and the Sub-Advisor. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Advisor which include, among other things, Fund performance, a review of the investment teams and reports on compliance, regulatory matters and risk management. The Board also meets with key investment personnel managing the Fund portfolios during the year. In October 2011, the Board also created two new standing committees (the Open-end Fund Committee and the Closed-end Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive issues and business practices of open-end and closed-end funds.
In addition, the Board continues its program of seeking to have the Board Members or a subset thereof visit each sub-advisor to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. Further, an ad hoc committee of the Board visited the then-current transfer agents of the Nuveen funds in 2011 and the audit committee of the Board visited the various pricing agents for the Nuveen funds in January 2012.
The Board considers factors and information that are relevant to its annual consideration of the renewal of the Advisory Agreements at the meetings held throughout the year. Accordingly, the Board considers the information provided and knowledge gained at these meetings when performing its annual review of the Advisory Agreements. The Independent Board Members are assisted throughout the process by independent legal counsel who provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts and met with the Independent Board Members in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members' conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
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
Nuveen Investments
67
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Advisor and its affiliates, the commitment of the Advisor to provide high quality service to the Funds, their overall confidence in the Advisor's integrity and the Advisor's responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
In considering advisory services, the Board recognized that the Advisor provides various oversight, administrative, compliance and other services for the Funds and the Sub-Advisor generally provides the portfolio investment management services to the Funds. In reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor's investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team's philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an inappropriate incentive to take undue risks. In addition, the Board considered the Advisor's execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services and communications, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares. The Board further recognized Nuveen's additional investments in personnel, including in compliance and risk management.
In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the closed-end fund product line. These initiatives included completion of the refinancing of auction rate preferred securities; efforts to eliminate product overlap with fund mergers; elimination of the insurance mandate on several funds; ongoing services to manage leverage that has become increasingly complex; continued secondary market offerings, share repurchases and other support initiatives for certain funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the
Nuveen Investments
68
latter, the Independent Board Members noted Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen's support services included, among other things: continuing communications concerning the refinancing efforts related to auction rate preferred securities; supporting and promoting munifund term preferred shares (MTP) including by launching a microsite dedicated to MTP shares; sponsoring and participating in conferences; communicating with closed-end fund analysts covering the Nuveen funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing a closed-end fund website.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "Performance Peer Group") based on data compiled by Nuveen that was provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks (i.e., benchmarks derived from multiple recognized benchmarks).
The Board reviewed reports, including a comprehensive analysis of the Funds' performance and the applicable investment team. In this regard, the Board reviewed each Fund's total return information compared to the returns of its Performance Peer Group and recognized and/or customized benchmarks for the quarter, one-, three- and five-year periods ending December 31, 2011, as well as performance information reflecting the first quarter of 2012.
The Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder's investment period. In addition, although the performance below reflects the performance results for the time periods
Nuveen Investments
69
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
ending as of the most recent calendar year end (unless otherwise indicated), the Board also recognized that selecting a different ending time period may derive different results. Furthermore, while the Board is cognizant of the relevant performance of a fund's peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund's investment objectives, investment parameters and guidelines and recognized that the objectives, investment parameters and guidelines of peers and/or benchmarks may differ to some extent, thereby resulting in differences in performance results. Nevertheless, with respect to any Nuveen funds that the Board considers to have underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
In considering the results of the comparisons, the Independent Board Members observed, among other things, that the Nuveen Equity Premium Advantage Fund (the "Premium Advantage Fund") and the Nuveen Equity Premium Opportunity Fund (the "Premium Opportunity Fund") had demonstrated generally favorable performance in comparison to their peers, performing in the top two quartiles (except that the Premium Opportunity Fund was in the third quartile for the three-year period). In addition, the Independent Board Members observed that the Nuveen Equity Premium Income Fund and the Nuveen Equity Premium and Growth Fund had demonstrated generally satisfactory performance compared to their peers, falling within the second or third quartile over various periods.
Based on their review, the Independent Board Members determined that each Fund's investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds provided by an independent fund data provider (the "Peer Universe") and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the limited size and particular composition of the Peer Universe (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe from year to year; levels of reimbursement or fee waivers; the timing of information used; and the differences in the type and use of leverage may impact the comparative data, thereby limiting somewhat the ability to make a meaningful comparison with peers.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). In
Nuveen Investments
70
reviewing fees and expenses (excluding leverage costs and leveraged assets), the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Universe. In reviewing the reports, the Board noted that the overwhelming majority of the Nuveen funds were at, close to or below their peer set average based on the net total expense ratio.
The Independent Board Members noted that each Fund had net management fees and a net expense ratio (including fee waivers and expense reimbursements, if any) below its peer averages.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees were reasonable in light of the nature, extent and quality of services provided to it.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature of services and range of fees offered by the Advisor to other clients, including separately managed accounts (both retail and institutional accounts), collective trusts, foreign investment funds offered by Nuveen, 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 sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor 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 the sub-advisory fees were the result of arm's-length negotiations.
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 and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the
Nuveen Investments
71
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
changes in revenues and expenses that impacted profitability in 2011. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
In reviewing profitability, the Independent Board Members recognized the Advisor's continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel in compliance, risk management, and product development as well as its ability to allocate resources to various areas of the Advisor as the need arises. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. 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 the Advisor's level of profitability for its advisory activities was reasonable in light of the services provided.
The Independent Board Members also considered the Sub-Advisor's revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities with the Funds. Based on their review, the Independent Board Members were satisfied that the Sub-Advisor'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 attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
Nuveen Investments
72
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. Further, 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 occur primarily through the appreciation of such funds' investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. In addition, with the acquisition of the funds previously advised by FAF Advisors, Inc., the Board noted that a portion of such funds' assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving as co-manager in initial public offerings of new closed-end funds as well as revenues received in connection with secondary offerings.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that the Advisor has the authority to pay a higher commission in return for brokerage and research services if it determines
Nuveen Investments
73
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided and may benefit from such soft dollar arrangements. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Advisor may also benefit a Fund and shareholders to the extent the research enhances the ability of the Advisor to manage the Fund. The Independent Board Members noted that the profitability of the Advisor may be somewhat lower if it did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly. Additionally, the Board considered that while the Sub-Advisor may select brokers that provide it with research services, it is the Sub-Advisor's current practice not to receive soft dollar credits 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 each Advisory Agreement are fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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74
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
Nuveen Investments
75
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.
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
76
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.
• Comparative Index for JLA: A blended return consisting of: 1) 50% of the return of the S&P 500 Index, and 2) 50% of the NASDAQ -100 Index. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
• Comparative Index for JSN: A blended return consisting of: 1) 75% of the return of the S&P 500® Index and 2) 25% of the NASDAQ -100 Index. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
• 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.
• NASDAQ -100 Index: An index including 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 assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
• Net Asset Value (NAV): The net market value of all securities held in a portfolio.
• Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund's total assets (securities, cash, and accrued earnings), subtracting the Fund's liabilities, and dividing by the number of shares outstanding.
• S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
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77
Intentionally Left Blank
Nuveen Investments
78
Additional Fund 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
Virginia L. Stringer
Terence J. Toth
Fund Manager
Nuveen Fund Advisers, Inc.
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, 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.
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 | 12,600 | ||||||
JSN | — | ||||||
JLA | 43,477 | ||||||
JPG | 1,800 |
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
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79
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed $212 billion as of June 30, 2012.
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
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com/cef
ESA-D-0612D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
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, 2012 |
| 3,000 |
| 11.35 |
| 3,000 |
| 2,478,711 |
|
|
|
|
|
|
|
|
|
|
|
FEBRUARY 1-29, 2012 |
| 0 |
|
|
| 0 |
| 2,478,711 |
|
|
|
|
|
|
|
|
|
|
|
MARCH 1-31, 2012 |
| 2,600 |
| 12.04 |
| 2,600 |
| 2,476,111 |
|
|
|
|
|
|
|
|
|
|
|
APRIL 1-30, 2012 |
| 12,000 |
| 11.93 |
| 12,000 |
| 2,464,111 |
|
|
|
|
|
|
|
|
|
|
|
MAY 1-31, 2012 |
| 10,000 |
| 11.97 |
| 10,000 |
| 2,454,111 |
|
|
|
|
|
|
|
|
|
|
|
JUNE 1-30, 2012 |
| 15,877 |
| 11.67 |
| 15,877 |
| 2,438,234 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
| 43,477 |
|
|
|
|
|
|
|
* The registrant’s repurchase program, which authorized the repurchase of 2,580,000 shares, was announced November 16, 2011. 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.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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 |
|
| Kevin J. McCarthy | |
| Vice President and Secretary |
Date: September 7, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Gifford R. Zimmerman |
|
| Gifford R. Zimmerman | |
| Chief Administrative Officer | |
| (principal executive officer) |
Date: September 7, 2012
By (Signature and Title) | /s/ Stephen D. Foy |
|
| Stephen D. Foy | |
| Vice President and Controller | |
| (principal financial officer) |
Date: September 7, 2012