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, 2013 |
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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, 2013
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
Letter to Shareholders | 4 | ||||||
Portfolio Managers' Comments | 5 | ||||||
Share Information | 7 | ||||||
Risk Considerations | 10 | ||||||
Performance Overviews and Holding Summaries | 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 | 65 | ||||||
Reinvest Automatically, Easily and Conveniently | 73 | ||||||
Glossary of Terms Used in this Report | 75 | ||||||
Additional Fund Information | 79 |
Letter to Shareholders
Dear Shareholders,
After nine years of serving as lead director and independent chairman of the Nuveen Fund Board, my term of office has come to an end as of June 30, 2013. It has been a privilege to use this space to communicate with you on some of the broad economic trends in the U.S. and abroad and how they are impacting the investment environment in which your funds operate. In addition, I have enjoyed offering some perspective on how your Board views the various Nuveen investment teams as they apply their investment disciplines in that investment environment.
My term has coincided with a particularly challenging period for both mutual fund sponsors and investors. Since 2000 there have been three periods of unusually strong stock market growth and two major market declines. Recent years have been characterized by a search for yield in fixed income securities to compensate for an extended period of very low interest rates. Funds are investing more in foreign and emerging markets that require extensive research capabilities to overcome the more limited transparency and higher volatility in those markets. New fund concepts often incorporate derivative financial instruments that offer efficient ways to hedge investment risk or gain exposure to selected markets. Fund trading teams operate in many new domestic and international venues with quite different characteristics. Electronic trading and global communication networks mean that fund managers must be able to thrive in financial markets that react instantaneously to newsworthy events and are more interconnected than ever.
Nuveen has committed additional resources to respond to these changes in the fund industry environment. It has added IT and research resources to assemble and evaluate the increased flow of detailed information on economies, markets and individual companies. Based on its experience during the financial crisis of 2008-09, Nuveen has expanded its resources dedicated to valuing and trading portfolio securities with a particular focus on stressed financial market conditions. It has added systems and experienced risk management professionals to work with investment teams to better help evaluate whether their funds' risk exposures are appropriate in view of the return targets. The investment teams have also reflected on recent experience to reaffirm or modify their investment disciplines. Finally, experienced professionals and IT resources have been added to address new regulatory requirements designed to better inform and protect investors. The Nuveen Fund Board has enthusiastically encouraged these initiatives.
The Board has always viewed itself as your representatives to assure that Nuveen brings together experienced people, proven technologies and effective processes designed to produce results that meet investor expectations. It is important to note that our activities are highlighted by the annual contract renewal process. Despite its somewhat formal language, I strongly encourage you to read the summary because it offers an insight into our oversight process. The report is included in the back of this shareholder report. The renewal process is very comprehensive and includes a number of evaluations and discussions between the Board and Nuveen during the year. The summary also describes what has been achieved across the Nuveen fund complex and at individual funds such as yours.
As I leave the chairmanship and resume my role as a member of the Board, please be assured that I and my fellow Board members will continue to hold your interests uppermost in our minds as we oversee the management of your funds and that we greatly appreciate your confidence in your Nuveen fund.
Very sincerely,
Robert P. Bremner
August 22, 2013
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4
Portfolio Managers' Comments
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. Kenneth H. Toft and Michael T. Buckius are co-portfolio managers for all four Funds. During the reporting period, effective February 21, 2013, J. Patrick Rogers no longer serves as a portfolio manager of the Funds. Each Fund's investment objectives and investment strategies remain unchanged.
Here they discuss their management strategies and the performance of the Funds for the six-month reporting period ended June 30, 2013.
What key strategies were used to manage the Funds during this six-month reporting period ended June 30, 2013?
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 to provide the potential for growth in value during rising markets and/or risk mitigation in the event of a market decline. These strategies remained consistent for 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 (NDX). JLA seeks to replicate a 50/50 blend of the S&P 500® Index and the NDX. JPZ, JSN and JLA actively write (sell) listed index call options against the entire value of their stock portfolios. JPG differs in that its index option hedging activity is applied to 80% of equity portfolio valuation.
The writing of call options on a broad equity index, while investing in a portfolio of equities, has the potential to enhance returns while exposing the Funds to less risk. Those portions of the Funds subject to the overwrite sacrifice some of their upside potential in return for premium received for the written index call options. The downside 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.
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.
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How did the Funds perform during this six-month reporting period ended June 30, 2013?
The tables in the Performance Overview and Holding Summaries section of this report provide total return performance for the Funds for the six-month, one-year, five-year and since inception periods ended June 30, 2013. For the six-month period ended June 30, 2013, the Funds' shares at net asset value (NAV) underperformed their respective comparative unhedged equity indexes. The two referenced indexes, the S&P 500® Index and the NDX, both advanced significantly, primarily on the strength of strong first-quarter performance. Concurrently, implied volatility, which affects option premiums on both indexes, was slightly below historical averages, primarily due to the presence of ample central bank liquidity. For the first six months of 2013, the Chicago Board Options Exchange Volatility Index (the "VIX") averaged 14.20 while the Chicago Board Options Exchange NDX Volatility Index (the "VXN") averaged 15.27. Nevertheless, rising equity markets and modest option premiums were sufficient so that the four Funds produced positive returns for the reporting period. Most importantly, all four Funds delivered their returns with less risk than long only equities and, like the referenced indexes, most of their returns occurred during the first quarter.
Also impacting performance was low implied volatility, which reduced the amount of option premium available to earn during the first six months of 2013. During the second quarter, market reversals were particularly problematic. These whipsaws were challenging for the Funds' call selling because, on the upside, performance was capped by at-the-money strike prices while, on the downside, declines were limited by the amount of premium earned.
Most of the underperformance for all four strategies was attributable to writing call options relative to equity only benchmarks such as the S&P 500 Index or a blend of the S&P 500 Index and the NASDAQ 100 Index. However, compared to 100% hedged passive equity indices, such as the CBOE S&P 500 BuyWrite Index (BXM) and the CBOE NASDAQ-100 BuyWrite Index (BXN), all four strategies exceeded the returns of the corresponding hedged equity index (or blend of the two hedged equity indices as in the case of JSN and JLA) for the six month period ending June 30, 2013. BXM returned approximately 4.9% and BXN returned approximately 5.0% for the six month period ending June 30, 2013.
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Share Information
Distribution Information
The following information regarding each Fund's distributions is current as of June 30, 2013, and likely will vary over time based on the Fund's investment activities and portfolio investment value changes.
During the current reporting period, the Funds' quarterly dividends to shareholders were as shown in the accompanying table.
Per Share Amounts | |||||||||||||||||||
JPZ | JSN | JLA | JPG | ||||||||||||||||
March | $ | 0.2710 | $ | 0.2790 | $ | 0.2840 | $ | 0.2800 | |||||||||||
June | 0.2710 | 0.2790 | 0.2840 | 0.2800 | |||||||||||||||
Current Distribution Rate* | 8.62 | % | 9.04 | % | 9.21 | % | 8.12 | % |
* Current Distribution Rate is based on the Funds' current annualized quarterly distribution divided by the Funds' current market price. The Funds' quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the fiscal year the Funds' cumulative net ordinary income and net realized gains are less than the amount of the Funds' distributions, a return of capital for tax purposes.
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.
Nuveen Investments
7
• 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, 2013. 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 June 30, 2013 | JPZ | JSN | JLA | JPG | |||||||||||||||
Inception date | 10/26/04 | 1/26/05 | 5/25/05 | 11/22/05 | |||||||||||||||
Six months ended June 30, 2013: | |||||||||||||||||||
Per share distribution: | |||||||||||||||||||
From net investment income | $ | 0.10 | $ | 0.08 | $ | 0.07 | $ | 0.11 | |||||||||||
From realized capital gains | 0.00 | 0.00 | 0.16 | 0.00 | |||||||||||||||
Return of capital | 0.44 | 0.48 | 0.34 | 0.45 | |||||||||||||||
Total per share distribution | $ | 0.54 | $ | 0.56 | $ | 0.57 | $ | 0.56 | |||||||||||
Annualized distribution rate on NAV | 8.09 | % | 8.46 | % | 8.45 | % | 7.52 | % | |||||||||||
Average annual total returns: | |||||||||||||||||||
6-Month (Cumulative) on NAV | 5.82 | % | 5.92 | % | 5.49 | % | 7.69 | % | |||||||||||
1-Year on NAV | 9.44 | % | 9.51 | % | 8.58 | % | 11.96 | % | |||||||||||
5-Year on NAV | 4.69 | % | 4.31 | % | 4.90 | % | 5.15 | % | |||||||||||
Since inception on NAV | 5.04 | % | 5.14 | % | 5.20 | % | 4.93 | % |
Share Repurchases
As of June 30, 2013, 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 Shares Authorized for Repurchase | |||||||||
JPZ | 460,238 | 1.2 | % | ||||||||
JSN | 550,600 | 0.8 | % | ||||||||
JLA | 462,633 | 1.8 | % | ||||||||
JPG | 383,763 | 2.4 | % |
During the current reporting period, the Funds did not repurchase any of their outstanding shares.
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Other Share Information
As of June 30, 2013, and during the current reporting period, the Funds' share prices were trading at a premium/(discount) to their NAVs as shown in the accompanying table.
JPZ | JSN | JLA | JPG | ||||||||||||||||
Share NAV | $ | 13.35 | $ | 13.24 | $ | 13.49 | $ | 14.90 | |||||||||||
Share Price | $ | 12.57 | $ | 12.35 | $ | 12.34 | $ | 13.80 | |||||||||||
Premium/(Discount) to NAV | (5.84 | )% | (6.72 | )% | (8.52 | )% | (7.38 | )% | |||||||||||
6-Month Average Premium/(Discount) to NAV | (6.45 | )% | (6.40 | )% | (8.36 | )% | (8.41 | )% |
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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. Fund common shares are subject to a variety of risks including:
Investment, Market and Price 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. Shares of closed-end investment companies like the Funds frequently trade at a discount to NAV. 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 stock 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 their equity portfolios as fully as they 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 their equity portfolio.
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.
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.
Reinvestment Risk. If market interest rates decline, income earned from a Fund's portfolio may be reinvested at rates below that of the original bond that generated the income.
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Nuveen Equity Premium Income Fund (JPZ)
Performance Overview and Holding Summaries as of June 30, 2013
Average Annual Total Returns as of June 30, 2013
Cumulative | Average Annual | ||||||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception3 | ||||||||||||||||
JPZ at NAV | 5.82 | % | 9.44 | % | 4.69 | % | 5.04 | % | |||||||||||
JPZ at Share Price | 10.84 | % | 13.23 | % | 6.70 | % | 4.35 | % | |||||||||||
S&P 500® Index | 13.82 | % | 20.60 | % | 7.01 | % | 6.55 | % |
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. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.
Share Price Performance — Weekly Closing Price
Portfolio Allocation1
(as a % of net assets)
Common Stocks | 98.7 | % | |||||
Short-Term Investments | 5.3 | % | |||||
Call Options Written | (2.1 | )% | |||||
Other4 | (1.9 | )% |
Portfolio Composition1,2 (as a % of total investments) |
Oil, Gas & Consumable Fuels | 7.9 | % | |||||
Pharmaceuticals | 6.3 | % | |||||
Diversified Financial Services | 4.6 | % | |||||
IT Services | 3.8 | % | |||||
Software | 3.4 | % | |||||
Diversified Telecommunication Services | 3.2 | % | |||||
Media | 3.2 | % | |||||
Computers & Peripherals | 3.0 | % | |||||
Commercial Banks | 2.8 | % | |||||
Beverages | 2.7 | % | |||||
Real Estate Investment Trust | 2.6 | % | |||||
Aerospace & Defense | 2.5 | % | |||||
Specialty Retail | 2.5 | % |
Internet Software & Services | 2.5 | % | |||||
Industrial Conglomerates | 2.4 | % | |||||
Semiconductors & Equipment | 2.2 | % | |||||
Insurance | 2.2 | % | |||||
Chemicals | 2.2 | % | |||||
Communications Equipment | 2.2 | % | |||||
Energy Equipment & Services | 2.1 | % | |||||
Machinery | 2.1 | % | |||||
Tobacco | 2.0 | % | |||||
Capital Markets | 2.0 | % | |||||
Short-Term Investments | 5.1 | % | |||||
Other | 24.5 | % |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1 Holdings are subject to change.
2 Excluding investments in derivatives.
3 Since inception returns are from 10/26/04.
4 Other assets less liabilities.
Nuveen Investments
11
Nuveen Equity Premium Opportunity Fund (JSN)
Performance Overview and Holding Summaries as of June 30, 2013
Average Annual Total Returns as of June 30, 2013
Cumulative | Average Annual | ||||||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception3 | ||||||||||||||||
JSN at NAV | 5.92 | % | 9.51 | % | 4.31 | % | 5.14 | % | |||||||||||
JSN at Share Price | 6.95 | % | 13.42 | % | 6.01 | % | 4.31 | % | |||||||||||
JSN Blended Index (Comparative Index) | 12.70 | % | 18.22 | % | 7.74 | % | 6.60 | % |
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. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.
Share Price Performance — Weekly Closing Price
Portfolio Allocation1
(as a % of net assets) |
Common Stocks | 97.9 | % | |||||
Short-Term Investments | 6.0 | % | |||||
Call Options Written | (2.0 | )% | |||||
Other4 | (1.9 | )% |
Portfolio Composition1,2 (as a % of total investments) |
Software | 6.5 | % | |||||
Computers & Peripherals | 5.9 | % | |||||
Oil, Gas & Consumable Fuels | 5.3 | % | |||||
Pharmaceuticals | 5.0 | % | |||||
Internet Software & Services | 4.7 | % | |||||
Communications Equipment | 3.6 | % | |||||
Media | 3.5 | % | |||||
IT Services | 3.4 | % | |||||
Semiconductors & Equipment | 3.3 | % | |||||
Diversified Financial Services | 3.1 | % | |||||
Biotechnology | 2.9 | % | |||||
Insurance | 2.5 | % | |||||
Specialty Retail | 2.1 | % |
Commercial Banks | 2.1 | % | |||||
Health Care Providers & Services | 2.1 | % | |||||
Diversified Telecommunication Services | 2.0 | % | |||||
Internet & Catalog Retail | 2.0 | % | |||||
Aerospace & Defense | 1.9 | % | |||||
Beverages | 1.9 | % | |||||
Machinery | 1.8 | % | |||||
Household Products | 1.7 | % | |||||
Food & Staples Retailing | 1.7 | % | |||||
Energy Equipment & Services | 1.6 | % | |||||
Short-Term Investments | 5.8 | % | |||||
Other | 23.6 | % |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1 Holdings are subject to change.
2 Excluding investments in derivatives.
3 Since inception returns are from 1/26/05.
4 Other assets less liabilities.
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12
Nuveen Equity Premium Advantage Fund (JLA)
Performance Overview and Holding Summaries as of June 30, 2013
Average Annual Total Returns as of June 30, 2013
Cumulative | Average Annual | ||||||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception3 | ||||||||||||||||
JLA at NAV | 5.49 | % | 8.58 | % | 4.90 | % | 5.20 | % | |||||||||||
JLA at Share Price | 8.49 | % | 12.44 | % | 6.04 | % | 4.16 | % | |||||||||||
JLA Blended Index (Comparative Index) | 11.58 | % | 15.87 | % | 8.42 | % | 7.21 | % |
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. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.
Share Price Performance — Weekly Closing Price
Portfolio Allocation1
(as a % of net assets)
Common Stocks | 98.6 | % | |||||
Short-Term Investments | 5.3 | % | |||||
Call Options Written | (1.9 | )% | |||||
Other4 | (2.0 | )% |
Portfolio Composition1,2 (as a % of total investments) |
Software | 9.7 | % | |||||
Computers & Peripherals | 7.5 | % | |||||
Internet Software & Services | 7.3 | % | |||||
Semiconductors & Equipment | 5.5 | % | |||||
Media | 4.9 | % | |||||
Communications Equipment | 4.8 | % | |||||
Biotechnology | 4.4 | % | |||||
Oil, Gas & Consumable Fuels | 4.1 | % | |||||
Pharmaceuticals | 3.9 | % | |||||
IT Services | 3.1 | % |
Internet & Catalog Retail | 2.6 | % | |||||
Health Care Providers & Services | 2.5 | % | |||||
Diversified Financial Services | 2.3 | % | |||||
Specialty Retail | 1.8 | % | |||||
Food & Staples Retailing | 1.7 | % | |||||
Electrical Equipment | 1.7 | % | |||||
Commercial Banks | 1.7 | % | |||||
Hotels, Restaurants & Leisure | 1.6 | % | |||||
Short-Term Investments | 5.1 | % | |||||
Other | 23.8 | % |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1 Holdings are subject to change.
2 Excluding investments in derivatives.
3 Since inception returns are from 5/25/05.
4 Other assets less liabilities.
Nuveen Investments
13
Nuveen Equity Premium and Growth Fund (JPG)
Performance Overview and Holding Summaries as of June 30, 2013
Average Annual Total Returns as of June 30, 2013
Cumulative | Average Annual | ||||||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception3 | ||||||||||||||||
JPG at NAV | 7.69 | % | 11.96 | % | 5.15 | % | 4.93 | % | |||||||||||
JPG at Share Price | 11.12 | % | 17.12 | % | 6.96 | % | 4.01 | % | |||||||||||
S&P 500® Index | 13.82 | % | 20.60 | % | 7.01 | % | 5.45 | % |
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. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.
Share Price Performance — Weekly Closing Price
Portfolio Allocation1
(as a % of net assets)
Common Stocks | 98.3 | % | |||||
Short-Term Investments | 5.2 | % | |||||
Call Options Written | (1.7 | )% | |||||
Other4 | (1.8 | )% |
Portfolio Composition1,2 (as a % of total investments) |
Oil, Gas & Consumable Fuels | 8.5 | % | |||||
Pharmaceuticals | 6.1 | % | |||||
Diversified Financial Services | 4.6 | % | |||||
Insurance | 3.8 | % | |||||
Software | 3.7 | % | |||||
IT Services | 3.6 | % | |||||
Computers & Peripherals | 3.2 | % | |||||
Diversified Telecommunication Services | 3.1 | % | |||||
Aerospace & Defense | 2.7 | % | |||||
Commercial Banks | 2.7 | % | |||||
Internet Software & Services | 2.6 | % | |||||
Specialty Retail | 2.6 | % |
Media | 2.5 | % | |||||
Machinery | 2.4 | % | |||||
Health Care Providers & Services | 2.4 | % | |||||
Chemicals | 2.4 | % | |||||
Beverages | 2.3 | % | |||||
Semiconductors & Equipment | 2.3 | % | |||||
Communications Equipment | 2.3 | % | |||||
Real Estate Investment Trust | 2.2 | % | |||||
Household Products | 2.1 | % | |||||
Tobacco | 2.1 | % | |||||
Short-Term Investments | 5.0 | % | |||||
Other | 24.8 | % |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1 Holdings are subject to change.
2 Excluding investments in derivatives.
3 Since inception returns are from 11/22/05.
4 Other assets less liabilities.
Nuveen Investments
14
JPZ
JSN
JLA
JPG
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on April 3, 2013; 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: | |||||||||||||||||||
William C. Hunter | |||||||||||||||||||
For | 33,506,869 | 57,566,929 | 23,181,576 | 14,985,693 | |||||||||||||||
Withhold | 805,434 | 1,345,936 | 556,920 | 220,517 | |||||||||||||||
Total | 34,312,303 | 58,912,865 | 23,738,496 | 15,206,210 | |||||||||||||||
Judith M. Stockdale | |||||||||||||||||||
For | 33,505,293 | 57,617,838 | 23,181,968 | 15,009,943 | |||||||||||||||
Withhold | 807,010 | 1,295,027 | 556,528 | 196,267 | |||||||||||||||
Total | 34,312,303 | 58,912,865 | 23,738,496 | 15,206,210 | |||||||||||||||
Carole E. Stone | |||||||||||||||||||
For | 33,432,348 | 57,559,605 | 23,195,696 | 14,994,097 | |||||||||||||||
Withhold | 879,955 | 1,353,260 | 542,800 | 212,113 | |||||||||||||||
Total | 34,312,303 | 58,912,865 | 23,738,496 | 15,206,210 | |||||||||||||||
Virginia L. Stringer | |||||||||||||||||||
For | 33,480,215 | 57,626,759 | 23,203,597 | 14,997,449 | |||||||||||||||
Withhold | 832,088 | 1,286,106 | 534,899 | 208,761 | |||||||||||||||
Total | 34,312,303 | 58,912,865 | 23,738,496 | 15,206,210 |
Nuveen Investments
15
JPZ
Nuveen Equity Premium Income Fund
Portfolio of Investments
June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.7% (5) | |||||||||||
Aerospace & Defense – 2.6% | |||||||||||
44,366 | Boeing Company | $ | 4,544,853 | ||||||||
44,474 | Honeywell International Inc. | 3,528,567 | |||||||||
32,905 | Raytheon Company | 2,175,679 | |||||||||
35,076 | United Technologies Corporation | 3,259,963 | |||||||||
Total Aerospace & Defense | 13,509,062 | ||||||||||
Air Freight & Logistics – 0.7% | |||||||||||
41,809 | United Parcel Service, Inc., Class B | 3,615,642 | |||||||||
Airlines – 0.0% | |||||||||||
3,957 | United Continental Holdings Inc., (2) | 123,815 | |||||||||
Auto Components – 0.2% | |||||||||||
30,296 | Cooper Tire & Rubber | 1,004,918 | |||||||||
Automobiles – 0.8% | |||||||||||
185,001 | Ford Motor Company | 2,861,965 | |||||||||
8,800 | General Motors Company, (2) | 293,128 | |||||||||
16,861 | Harley-Davidson, Inc. | 924,320 | |||||||||
Total Automobiles | 4,079,413 | ||||||||||
Beverages – 2.8% | |||||||||||
180,676 | Coca-Cola Company | 7,246,914 | |||||||||
14,723 | Monster Beverage Corporation, (2) | 894,717 | |||||||||
75,742 | PepsiCo, Inc. | 6,194,938 | |||||||||
Total Beverages | 14,336,569 | ||||||||||
Biotechnology – 1.8% | |||||||||||
40,799 | Amgen Inc. | 4,025,229 | |||||||||
22,699 | Celgene Corporation, (2) | 2,653,740 | |||||||||
47,374 | Gilead Sciences, Inc., (2) | 2,426,023 | |||||||||
Total Biotechnology | 9,104,992 | ||||||||||
Building Products – 0.2% | |||||||||||
42,748 | Masco Corporation | 833,159 | |||||||||
Capital Markets – 2.0% | |||||||||||
99,725 | Charles Schwab Corporation | 2,117,162 | |||||||||
20,622 | Goldman Sachs Group, Inc. | 3,119,078 | |||||||||
35,138 | Legg Mason, Inc. | 1,089,629 | |||||||||
100,638 | Morgan Stanley | 2,458,586 | |||||||||
38,635 | Waddell & Reed Financial, Inc., Class A | 1,680,623 | |||||||||
Total Capital Markets | 10,465,078 | ||||||||||
Chemicals – 2.3% | |||||||||||
48,008 | Dow Chemical Company | 1,544,417 | |||||||||
42,638 | E.I. Du Pont de Nemours and Company | 2,238,495 |
Nuveen Investments
16
Shares | Description (1) | Value | |||||||||
Chemicals (continued) | |||||||||||
34,457 | Eastman Chemical Company | $ | 2,412,335 | ||||||||
22,507 | Monsanto Company | 2,223,692 | |||||||||
53,293 | Olin Corporation | 1,274,769 | |||||||||
60,403 | RPM International, Inc. | 1,929,272 | |||||||||
Total Chemicals | 11,622,980 | ||||||||||
Commercial Banks – 2.9% | |||||||||||
33,724 | Comerica Incorporated | 1,343,227 | |||||||||
16,998 | HSBC Holdings PLC, Sponsored ADR | 882,196 | |||||||||
17,184 | PNC Financial Services Group, Inc. | 1,253,057 | |||||||||
95,133 | U.S. Bancorp | 3,439,058 | |||||||||
196,464 | Wells Fargo & Company | 8,108,069 | |||||||||
Total Commercial Banks | 15,025,607 | ||||||||||
Commercial Services & Supplies – 0.5% | |||||||||||
3,177 | Avery Dennison Corporation | 135,849 | |||||||||
3,549 | Deluxe Corporation | 122,973 | |||||||||
40,642 | Pitney Bowes Inc. | 596,625 | |||||||||
16,031 | R.R. Donnelley & Sons Company | 224,594 | |||||||||
35,497 | Waste Management, Inc. | 1,431,594 | |||||||||
Total Commercial Services & Supplies | 2,511,635 | ||||||||||
Communications Equipment – 2.3% | |||||||||||
14,156 | ADTRAN, Inc. | 348,379 | |||||||||
3,408 | Ciena Corporation, (2) | 66,183 | |||||||||
222,389 | Cisco Systems, Inc. | 5,406,277 | |||||||||
11,034 | JDS Uniphase Corporation, (2) | 158,669 | |||||||||
21,303 | Motorola Solutions Inc. | 1,229,822 | |||||||||
71,809 | QUALCOMM, Inc. | 4,386,094 | |||||||||
Total Communications Equipment | 11,595,424 | ||||||||||
Computers & Peripherals – 3.2% | |||||||||||
32,229 | Apple, Inc. | 12,765,262 | |||||||||
67,332 | Dell Inc. | 898,882 | |||||||||
108,453 | EMC Corporation | 2,561,660 | |||||||||
Total Computers & Peripherals | 16,225,804 | ||||||||||
Consumer Finance – 0.6% | |||||||||||
23,246 | American Express Company | 1,737,871 | |||||||||
32,690 | Discover Financial Services | 1,557,352 | |||||||||
Total Consumer Finance | 3,295,223 | ||||||||||
Containers & Packaging – 0.4% | |||||||||||
37,972 | Packaging Corp. of America | 1,859,109 | |||||||||
5,718 | Sonoco Products Company | 197,671 | |||||||||
Total Containers & Packaging | 2,056,780 | ||||||||||
Distributors – 0.4% | |||||||||||
29,044 | Genuine Parts Company | 2,267,465 | |||||||||
Diversified Consumer Services – 0.0% | |||||||||||
7,623 | Apollo Group, Inc., Class A, (2) | 135,080 | |||||||||
Diversified Financial Services – 4.8% | |||||||||||
414,679 | Bank of America Corporation | 5,332,772 | |||||||||
112,577 | Citigroup Inc. | 5,400,319 | |||||||||
33,950 | CME Group, Inc. | 2,579,521 |
Nuveen Investments
17
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Diversified Financial Services (continued) | |||||||||||
163,114 | JPMorgan Chase & Co. | $ | 8,610,788 | ||||||||
39,312 | Leucadia National Corporation | 1,030,761 | |||||||||
40,722 | New York Stock Exchange Euronext | 1,685,891 | |||||||||
Total Diversified Financial Services | 24,640,052 | ||||||||||
Diversified Telecommunication Services – 3.3% | |||||||||||
248,747 | AT&T Inc. | 8,805,644 | |||||||||
24,804 | CenturyLink Inc. | 876,821 | |||||||||
250,097 | Frontier Communications Corporation | 1,012,893 | |||||||||
123,469 | Verizon Communications Inc. | 6,215,429 | |||||||||
18,198 | Windstream Corporation | 140,307 | |||||||||
Total Diversified Telecommunication Services | 17,051,094 | ||||||||||
Electric Utilities – 1.6% | |||||||||||
55,280 | Duke Energy Corporation | 3,731,400 | |||||||||
27,323 | Great Plains Energy Incorporated | 615,860 | |||||||||
19,046 | OGE Energy Corp. | 1,298,937 | |||||||||
80,800 | Pepco Holdings, Inc. | 1,628,928 | |||||||||
20,004 | Southern Company | 882,777 | |||||||||
Total Electric Utilities | 8,157,902 | ||||||||||
Electrical Equipment – 0.5% | |||||||||||
28,305 | Emerson Electric Company | 1,543,755 | |||||||||
14,553 | Rockwell Automation, Inc. | 1,209,936 | |||||||||
Total Electrical Equipment | 2,753,691 | ||||||||||
Electronic Equipment & Instruments – 0.3% | |||||||||||
118,215 | Corning Incorporated | 1,682,199 | |||||||||
Energy Equipment & Services – 2.1% | |||||||||||
6,964 | Diamond Offshore Drilling, Inc. | 479,054 | |||||||||
18,452 | Ensco International PLC, Class A, Sponsored ADR | 1,072,430 | |||||||||
79,215 | Halliburton Company | 3,304,850 | |||||||||
16,059 | Patterson-UTI Energy, Inc. | 310,822 | |||||||||
68,690 | Schlumberger Limited | 4,922,325 | |||||||||
16,157 | Tidewater Inc. | 920,464 | |||||||||
Total Energy Equipment & Services | 11,009,945 | ||||||||||
Food & Staples Retailing – 1.4% | |||||||||||
39,079 | CVS Caremark Corporation | 2,234,537 | |||||||||
38,696 | SUPERVALU INC., (2) | 240,689 | |||||||||
59,540 | Wal-Mart Stores, Inc. | 4,435,135 | |||||||||
Total Food & Staples Retailing | 6,910,361 | ||||||||||
Food Products – 1.0% | |||||||||||
37,375 | Kraft Foods Inc., Class A | 2,088,141 | |||||||||
112,127 | Mondelez International Inc. | 3,198,983 | |||||||||
Total Food Products | 5,287,124 | ||||||||||
Gas Utilities – 1.0% | |||||||||||
36,031 | AGL Resources Inc. | 1,544,289 | |||||||||
12,516 | Atmos Energy Corporation | 513,907 | |||||||||
22,995 | National Fuel Gas Company | 1,332,560 | |||||||||
38,518 | ONEOK, Inc. | 1,591,179 | |||||||||
Total Gas Utilities | 4,981,935 |
Nuveen Investments
18
Shares | Description (1) | Value | |||||||||
Health Care Equipment & Supplies – 1.6% | |||||||||||
72,041 | Abbott Laboratories | $ | 2,512,790 | ||||||||
4,460 | Hologic Inc., (2) | 86,078 | |||||||||
3,342 | Intuitive Surgical, Inc., (2) | 1,692,990 | |||||||||
78,706 | Medtronic, Inc. | 4,050,998 | |||||||||
Total Health Care Equipment & Supplies | 8,342,856 | ||||||||||
Health Care Providers & Services – 2.0% | |||||||||||
6,002 | Aetna Inc. | 381,367 | |||||||||
6,901 | Brookdale Senior Living Inc., (2) | 182,462 | |||||||||
33,153 | Express Scripts, (2) | 2,045,209 | |||||||||
13,578 | HCA Holdings Inc. | 489,623 | |||||||||
1,116 | Henry Schein Inc., (2) | 106,857 | |||||||||
39,267 | Kindred Healthcare Inc., (2) | 515,576 | |||||||||
71,299 | UnitedHealth Group Incorporated | 4,668,658 | |||||||||
25,221 | Wellpoint Inc. | 2,064,087 | |||||||||
Total Health Care Providers & Services | 10,453,839 | ||||||||||
Health Care Technology – 0.0% | |||||||||||
114 | Cerner Corporation, (2) | 10,954 | |||||||||
Hotels, Restaurants & Leisure – 1.3% | |||||||||||
22,200 | Carnival Corporation | 761,238 | |||||||||
42,761 | International Game Technology | 714,536 | |||||||||
2,272 | Interval Leisure Group Inc. | 45,258 | |||||||||
53,750 | McDonald's Corporation | 5,321,250 | |||||||||
Total Hotels, Restaurants & Leisure | 6,842,282 | ||||||||||
Household Durables – 0.8% | |||||||||||
2,990 | Garmin Limited | 108,118 | |||||||||
64,653 | Newell Rubbermaid Inc. | 1,697,141 | |||||||||
13,864 | Tupperware Corporation | 1,077,094 | |||||||||
11,356 | Whirlpool Corporation | 1,298,672 | |||||||||
Total Household Durables | 4,181,025 | ||||||||||
Household Products – 1.9% | |||||||||||
29,756 | Colgate-Palmolive Company | 1,704,721 | |||||||||
11,711 | Kimberly-Clark Corporation | 1,137,607 | |||||||||
90,419 | Procter & Gamble Company | 6,961,359 | |||||||||
Total Household Products | 9,803,687 | ||||||||||
Industrial Conglomerates – 2.5% | |||||||||||
38,964 | 3M Co. | 4,260,713 | |||||||||
367,915 | General Electric Company | 8,531,949 | |||||||||
57 | Siemens AG, Sponsored ADR | 5,775 | |||||||||
Total Industrial Conglomerates | 12,798,437 | ||||||||||
Insurance – 2.3% | |||||||||||
47,749 | Allstate Corporation | 2,297,682 | |||||||||
8,871 | Arthur J. Gallagher & Co. | 387,574 | |||||||||
36,694 | Fidelity National Title Group Inc., Class A | 873,684 | |||||||||
20,464 | Hartford Financial Services Group, Inc. | 632,747 | |||||||||
13,665 | Kemper Corporation | 468,026 | |||||||||
44,881 | Lincoln National Corporation | 1,636,810 | |||||||||
63,707 | Marsh & McLennan Companies, Inc. | 2,543,183 | |||||||||
35,546 | Travelers Companies, Inc. | 2,840,836 | |||||||||
Total Insurance | 11,680,542 |
Nuveen Investments
19
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Internet & Catalog Retail – 1.3% | |||||||||||
14,883 | Amazon.com, Inc., (2) | $ | 4,132,860 | ||||||||
3,103 | HSN, Inc. | 166,693 | |||||||||
2,786 | Priceline.com Incorporated, (2) | 2,304,384 | |||||||||
Total Internet & Catalog Retail | 6,603,937 | ||||||||||
Internet Software & Services – 2.6% | |||||||||||
10,937 | Akamai Technologies, Inc., (2) | 465,369 | |||||||||
49,259 | eBay Inc., (2) | 2,547,675 | |||||||||
8,710 | Google Inc., Class A, (2) | 7,668,023 | |||||||||
44,605 | United Online, Inc. | 338,106 | |||||||||
5,616 | ValueClick, Inc., (2) | 138,603 | |||||||||
10,002 | VeriSign, Inc., (2) | 446,689 | |||||||||
71,826 | Yahoo! Inc., (2) | 1,803,551 | |||||||||
Total Internet Software & Services | 13,408,016 | ||||||||||
IT Services – 4.0% | |||||||||||
1,600 | Alliance Data Systems Corporation, (2) | 289,648 | |||||||||
34,359 | Automatic Data Processing, Inc. | 2,365,961 | |||||||||
17,199 | Cognizant Technology Solutions Corporation, Class A, (2) | 1,076,829 | |||||||||
32,696 | Fidelity National Information Services | 1,400,697 | |||||||||
38,580 | International Business Machines Corporation (IBM) | 7,373,024 | |||||||||
3,197 | Lender Processing Services Inc. | 103,423 | |||||||||
5,819 | MasterCard, Inc. | 3,343,015 | |||||||||
42,671 | Paychex, Inc. | 1,558,345 | |||||||||
16,519 | Visa Inc., Class A | 3,018,847 | |||||||||
Total IT Services | 20,529,789 | ||||||||||
Leisure Equipment & Products – 0.4% | |||||||||||
19,609 | Polaris Industries Inc. | 1,862,855 | |||||||||
Machinery – 2.1% | |||||||||||
15,616 | Caterpillar Inc. | 1,288,164 | |||||||||
15,272 | Cummins Inc. | 1,656,401 | |||||||||
20,884 | Deere & Company | 1,696,825 | |||||||||
13,600 | Graco Inc. | 859,656 | |||||||||
13,107 | Ingersoll Rand Company Limited, Class A | 727,701 | |||||||||
16,893 | Parker Hannifin Corporation | 1,611,592 | |||||||||
11,767 | Snap-on Incorporated | 1,051,734 | |||||||||
5,979 | SPX Corporation | 430,368 | |||||||||
12,948 | Stanley Black & Decker Inc. | 1,000,880 | |||||||||
12,000 | Timken Company | 675,360 | |||||||||
Total Machinery | 10,998,681 | ||||||||||
Media – 3.3% | |||||||||||
44,936 | CBS Corporation, Class B | 2,196,022 | |||||||||
114,249 | Comcast Corporation, Class A | 4,784,748 | |||||||||
6,400 | DISH Network Corp, Class A | 272,128 | |||||||||
39,613 | New York Times, Class A, (2) | 438,120 | |||||||||
8,100 | News Corporation, Class B | 265,842 | |||||||||
35,396 | Omnicom Group, Inc. | 2,225,347 | |||||||||
114,479 | Regal Entertainment Group, Class A | 2,049,174 | |||||||||
73,604 | Walt Disney Company | 4,648,093 | |||||||||
Total Media | 16,879,474 | ||||||||||
Metals & Mining – 0.7% | |||||||||||
88,284 | Alcoa Inc. | 690,381 | |||||||||
29,074 | Freeport-McMoRan Copper & Gold, Inc. | 802,733 | |||||||||
6,726 | Newmont Mining Corporation | 201,444 |
Nuveen Investments
20
Shares | Description (1) | Value | |||||||||
Metals & Mining (continued) | |||||||||||
24,595 | Nucor Corporation | $ | 1,065,455 | ||||||||
32,749 | Southern Copper Corporation | 904,527 | |||||||||
Total Metals & Mining | 3,664,540 | ||||||||||
Multiline Retail – 1.2% | |||||||||||
4,000 | Family Dollar Stores, Inc. | 249,240 | |||||||||
36,680 | Macy's, Inc. | 1,760,640 | |||||||||
25,718 | Nordstrom, Inc. | 1,541,537 | |||||||||
8,076 | Sears Holding Corporation, (2) | 339,838 | |||||||||
30,023 | Target Corporation | 2,067,384 | |||||||||
Total Multiline Retail | 5,958,639 | ||||||||||
Multi-Utilities – 1.4% | |||||||||||
40,212 | Ameren Corporation | 1,384,901 | |||||||||
22,660 | Consolidated Edison, Inc. | 1,321,305 | |||||||||
30,824 | Integrys Energy Group, Inc. | 1,804,129 | |||||||||
15,734 | Northwestern Corporation | 627,787 | |||||||||
60,347 | Public Service Enterprise Group Incorporated | 1,970,933 | |||||||||
Total Multi-Utilities | 7,109,055 | ||||||||||
Oil, Gas & Consumable Fuels – 8.2% | |||||||||||
9,051 | Cenovus Energy Inc. | 258,135 | |||||||||
75,513 | Chevron Corporation | 8,936,208 | |||||||||
59,011 | ConocoPhillips | 3,570,166 | |||||||||
39,168 | CONSOL Energy Inc. | 1,061,453 | |||||||||
22,581 | Continental Resources Inc., (2) | 1,943,321 | |||||||||
16,151 | EnCana Corporation | 273,598 | |||||||||
20,469 | EOG Resources, Inc. | 2,695,358 | |||||||||
170,355 | Exxon Mobil Corporation | 15,391,574 | |||||||||
36,332 | Occidental Petroleum Corporation | 3,241,904 | |||||||||
38,405 | Phillips 66 | 2,262,439 | |||||||||
4,626 | Total SA, Sponsored ADR | 225,286 | |||||||||
69,748 | Valero Energy Corporation | 2,425,138 | |||||||||
Total Oil, Gas & Consumable Fuels | 42,284,580 | ||||||||||
Pharmaceuticals – 6.6% | |||||||||||
72,041 | AbbVie Inc. | 2,978,175 | |||||||||
111,190 | Bristol-Myers Squibb Company | 4,969,081 | |||||||||
41,183 | Eli Lilly and Company | 2,022,909 | |||||||||
116,804 | Johnson & Johnson | 10,028,791 | |||||||||
132,433 | Merck & Company Inc. | 6,151,513 | |||||||||
270,678 | Pfizer Inc. | 7,581,691 | |||||||||
Total Pharmaceuticals | 33,732,160 | ||||||||||
Professional Services – 0.1% | |||||||||||
3,665 | Manpower Inc. | 200,842 | |||||||||
6,949 | Resources Connection, Inc. | 80,608 | |||||||||
Total Professional Services | 281,450 | ||||||||||
Real Estate Investment Trust – 2.8% | |||||||||||
96,573 | Annaly Capital Management Inc. | 1,213,923 | |||||||||
39,521 | Brandywine Realty Trust | 534,324 | |||||||||
44,183 | CapLease Inc. | 372,905 | |||||||||
25,456 | CommonWealth REIT | 588,543 | |||||||||
55,131 | CubeSmart | 880,993 | |||||||||
15,432 | Health Care REIT, Inc. | 1,034,407 | |||||||||
47,225 | Healthcare Realty Trust, Inc. | 1,204,238 |
Nuveen Investments
21
JPZ
Nuveen Equity Premium Income Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Real Estate Investment Trust (continued) | |||||||||||
45,684 | Hospitality Properties Trust | $ | 1,200,576 | ||||||||
88,469 | Lexington Corporate Properties Trust | 1,033,318 | |||||||||
27,077 | Liberty Property Trust | 1,000,766 | |||||||||
17,263 | Medical Properties Trust Inc. | 247,206 | |||||||||
28,311 | MFA Mortgage Investments, Inc. | 239,228 | |||||||||
26,716 | Senior Housing Properties Trust | 692,746 | |||||||||
11,215 | Sun Communities Inc. | 558,058 | |||||||||
25,238 | Ventas Inc. | 1,753,031 | |||||||||
54,475 | Weyerhaeuser Company | 1,551,993 | |||||||||
Total Real Estate Investment Trust | 14,106,255 | ||||||||||
Road & Rail – 1.0% | |||||||||||
17,765 | Norfolk Southern Corporation | 1,290,627 | |||||||||
24,329 | Union Pacific Corporation | 3,753,478 | |||||||||
Total Road & Rail | 5,044,105 | ||||||||||
Semiconductors & Equipment – 2.3% | |||||||||||
25,275 | Analog Devices, Inc. | 1,138,892 | |||||||||
96,369 | Applied Materials, Inc. | 1,436,862 | |||||||||
21,444 | Broadcom Corporation, Class A | 723,949 | |||||||||
213,873 | Intel Corporation | 5,180,004 | |||||||||
12,846 | Intersil Holding Corporation, Class A | 100,456 | |||||||||
3,087 | Lam Research Corporation, (2) | 136,878 | |||||||||
24,776 | Microchip Technology Incorporated | 922,906 | |||||||||
27,856 | NVIDIA Corporation | 390,820 | |||||||||
51,579 | Texas Instruments Incorporated | 1,798,560 | |||||||||
Total Semiconductors & Equipment | 11,829,327 | ||||||||||
Software – 3.5% | |||||||||||
23,572 | Adobe Systems Incorporated, (2) | 1,073,940 | |||||||||
18,599 | Autodesk, Inc., (2) | 631,250 | |||||||||
304,276 | Microsoft Corporation | 10,506,650 | |||||||||
146,688 | Oracle Corporation | 4,506,255 | |||||||||
37,900 | Salesforce.com, Inc., (2) | 1,447,022 | |||||||||
Total Software | 18,165,117 | ||||||||||
Specialty Retail – 2.6% | |||||||||||
18,330 | Abercrombie & Fitch Co., Class A | 829,433 | |||||||||
41,497 | American Eagle Outfitters, Inc. | 757,735 | |||||||||
21,475 | Best Buy Co., Inc. | 586,912 | |||||||||
7,749 | CST Brands Inc., (2) | 238,747 | |||||||||
50,218 | Home Depot, Inc. | 3,890,388 | |||||||||
36,675 | Limited Brands Inc. | 1,806,244 | |||||||||
71,238 | Lowe's Companies, Inc. | 2,913,634 | |||||||||
472 | Ross Stores, Inc. | 30,590 | |||||||||
13,465 | Tiffany & Co. | 980,791 | |||||||||
28,637 | TJX Companies, Inc. | 1,433,568 | |||||||||
Total Specialty Retail | 13,468,042 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.2% | |||||||||||
7,159 | Cherokee Inc. | 91,492 | |||||||||
3,766 | VF Corporation | 727,064 | |||||||||
Total Textiles, Apparel & Luxury Goods | 818,556 |
Nuveen Investments
22
Shares | Description (1) | Value | |||||||||
Thrifts & Mortgage Finance – 0.2% | |||||||||||
36,703 | Hudson City Bancorp, Inc. | $ | 336,199 | ||||||||
60,610 | New York Community Bancorp Inc. | 848,540 | |||||||||
Total Thrifts & Mortgage Finance | 1,184,739 | ||||||||||
Tobacco – 2.1% | |||||||||||
97,022 | Altria Group, Inc. | 3,394,800 | |||||||||
69,806 | Philip Morris International | 6,046,596 | |||||||||
20,787 | Reynolds American Inc. | 1,005,467 | |||||||||
5,109 | Vector Group Ltd. | 82,868 | |||||||||
Total Tobacco | 10,529,731 | ||||||||||
Wireless Telecommunication Services – 0.0% | |||||||||||
5,500 | USA Mobility Inc. | 74,635 | |||||||||
Total Common Stocks (cost $348,158,368) | 506,930,254 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 5.3% | |||||||||||||||||||
$ | 27,177 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/13, repurchase price $27,177,065, collateralized by $28,215,000 U.S. Treasury Notes, 1.000%, due 5/31/18, value $27,721,238 | 0.010 | % | 7/01/13 | $ | 27,177,042 | ||||||||||||
Total Short-Term Investments (cost $27,177,042) | 27,177,042 | ||||||||||||||||||
Total Investments (cost $375,335,410) – 104.0% | 534,107,296 | ||||||||||||||||||
Other Assets Less Liabilities – (4.0)% (3) | (20,481,835 | ) | |||||||||||||||||
Net Assets – 100% | $ | 513,625,461 |
Investments in Derivatives as of June 30, 2013
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value (3) | ||||||||||||||||||
(426 | ) | S&P 500® Index | $ | (66,030,000 | ) | 7/20/13 | $ | 1,550 | $ | (2,643,330 | ) | ||||||||||||
(382 | ) | S&P 500® Index | (60,165,000 | ) | 7/20/13 | 1575 | (1,615,860 | ) | |||||||||||||||
(685 | ) | S&P 500® Index | (109,600,000 | ) | 7/20/13 | 1600 | (1,743,325 | ) | |||||||||||||||
(750 | ) | S&P 500® Index | (121,875,000 | ) | 7/20/13 | 1625 | (933,750 | ) | |||||||||||||||
(285 | ) | S&P 500® Index | (44,887,500 | ) | 8/17/13 | 1575 | (1,541,850 | ) | |||||||||||||||
(602 | ) | S&P 500® Index | (96,320,000 | ) | 8/17/13 | 1600 | (2,269,540 | ) | |||||||||||||||
(3,130 | ) | Total Call Options Written (premiums received $12,322,155) | $ | (498,877,500 | ) |
|
| $ | (10,747,655 | ) |
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 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 shown 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 listed within Investments in Derivatives as of the end of the reporting period.
(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, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 97.9% (5) | |||||||||||
Aerospace & Defense – 2.0% | |||||||||||
37,352 | Boeing Company | $ | 3,826,339 | ||||||||
48,538 | Honeywell International Inc. | 3,851,005 | |||||||||
8,874 | Huntington Ingalls Industries Inc. | 501,204 | |||||||||
17,575 | Lockheed Martin Corporation | 1,906,185 | |||||||||
31,240 | Northrop Grumman Corporation | 2,586,672 | |||||||||
32,796 | Raytheon Company | 2,168,472 | |||||||||
31,622 | United Technologies Corporation | 2,938,949 | |||||||||
Total Aerospace & Defense | 17,778,826 | ||||||||||
Air Freight & Logistics – 0.8% | |||||||||||
82,888 | United Parcel Service, Inc., Class B | 7,168,154 | |||||||||
Auto Components – 0.2% | |||||||||||
60,739 | Gentex Corporation | 1,400,034 | |||||||||
Automobiles – 0.6% | |||||||||||
213,263 | Ford Motor Company | 3,299,179 | |||||||||
33,442 | Harley-Davidson, Inc. | 1,833,290 | |||||||||
Total Automobiles | 5,132,469 | ||||||||||
Beverages – 1.9% | |||||||||||
235,730 | Coca-Cola Company | 9,455,130 | |||||||||
28,504 | Monster Beverage Corporation, (2) | 1,732,188 | |||||||||
71,558 | PepsiCo, Inc. | 5,852,729 | |||||||||
Total Beverages | 17,040,047 | ||||||||||
Biotechnology – 3.0% | |||||||||||
48,142 | Amgen Inc. | 4,749,690 | |||||||||
81,056 | Celgene Corporation, (2) | 9,476,257 | |||||||||
236,655 | Gilead Sciences, Inc., (2) | 12,119,103 | |||||||||
Total Biotechnology | 26,345,050 | ||||||||||
Capital Markets – 1.6% | |||||||||||
129,710 | Charles Schwab Corporation | 2,753,743 | |||||||||
48,725 | Eaton Vance Corporation | 1,831,573 | |||||||||
20,275 | Goldman Sachs Group, Inc. | 3,066,594 | |||||||||
43,099 | Legg Mason, Inc. | 1,336,500 | |||||||||
101,241 | Morgan Stanley | 2,473,318 | |||||||||
61,497 | Waddell & Reed Financial, Inc., Class A | 2,675,119 | |||||||||
Total Capital Markets | 14,136,847 | ||||||||||
Chemicals – 1.4% | |||||||||||
35,894 | Dow Chemical Company | 1,154,710 | |||||||||
26,873 | E.I. Du Pont de Nemours and Company | 1,410,833 | |||||||||
61,739 | Eastman Chemical Company | 4,322,347 | |||||||||
37,024 | Monsanto Company | 3,657,971 | |||||||||
10,878 | Potash Corporation of Saskatchewan | 414,778 |
Nuveen Investments
24
Shares | Description (1) | Value | |||||||||
Chemicals (continued) | |||||||||||
33,218 | RPM International, Inc. | $ | 1,060,983 | ||||||||
Total Chemicals | 12,021,622 | ||||||||||
Commercial Banks – 2.2% | |||||||||||
71,851 | Fifth Third Bancorp. | 1,296,911 | |||||||||
86,613 | First Horizon National Corporation | 970,066 | |||||||||
143 | HSBC Holdings PLC, Sponsored ADR | 7,422 | |||||||||
6 | Lloyds TSB Group PLC, Sponsored ADR, (2) | 23 | |||||||||
174,188 | U.S. Bancorp | 6,296,896 | |||||||||
267,373 | Wells Fargo & Company | 11,034,484 | |||||||||
Total Commercial Banks | 19,605,802 | ||||||||||
Commercial Services & Supplies – 0.4% | |||||||||||
23,371 | Deluxe Corporation | 809,805 | |||||||||
49,936 | R.R. Donnelley & Sons Company | 699,603 | |||||||||
53,708 | Waste Management, Inc. | 2,166,044 | |||||||||
Total Commercial Services & Supplies | 3,675,452 | ||||||||||
Communications Equipment – 3.8% | |||||||||||
45,063 | ADTRAN, Inc. | 1,109,000 | |||||||||
13,861 | Aviat Networks Inc., (2) | 36,316 | |||||||||
630,518 | Cisco Systems, Inc. | 15,327,893 | |||||||||
19,247 | Harris Corporation | 947,915 | |||||||||
14,940 | Motorola Solutions Inc. | 862,486 | |||||||||
244,139 | QUALCOMM, Inc. | 14,912,010 | |||||||||
Total Communications Equipment | 33,195,620 | ||||||||||
Computers & Peripherals – 6.1% | |||||||||||
106,907 | Apple, Inc. | 42,343,725 | |||||||||
211,358 | Dell Inc. | 2,821,629 | |||||||||
157,114 | EMC Corporation | 3,711,033 | |||||||||
114,325 | Hewlett-Packard Company | 2,835,260 | |||||||||
65,269 | NetApp, Inc. | 2,465,863 | |||||||||
Total Computers & Peripherals | 54,177,510 | ||||||||||
Consumer Finance – 0.9% | |||||||||||
51,885 | American Express Company | 3,878,923 | |||||||||
55,844 | Discover Financial Services | 2,660,408 | |||||||||
77,393 | SLM Corporation | 1,769,204 | |||||||||
Total Consumer Finance | 8,308,535 | ||||||||||
Containers & Packaging – 0.5% | |||||||||||
59,259 | Packaging Corp. of America | 2,901,321 | |||||||||
50,628 | Sonoco Products Company | 1,750,210 | |||||||||
Total Containers & Packaging | 4,651,531 | ||||||||||
Distributors – 0.3% | |||||||||||
31,204 | Genuine Parts Company | 2,436,096 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
35,953 | Hillenbrand Inc. | 852,446 | |||||||||
Diversified Financial Services – 3.2% | |||||||||||
600,967 | Bank of America Corporation | 7,728,436 | |||||||||
122,510 | Citigroup Inc. | 5,876,805 | |||||||||
53,445 | CME Group, Inc. | 4,060,751 | |||||||||
3,691 | ING Groep N.V., Sponsored ADR, (2) | 33,551 |
Nuveen Investments
25
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Diversified Financial Services (continued) | |||||||||||
201,985 | JPMorgan Chase & Co. | $ | 10,662,788 | ||||||||
Total Diversified Financial Services | 28,362,331 | ||||||||||
Diversified Telecommunication Services – 2.1% | |||||||||||
263,253 | AT&T Inc. | 9,319,156 | |||||||||
93,521 | Frontier Communications Corporation | 378,760 | |||||||||
174,210 | Verizon Communications Inc. | 8,769,731 | |||||||||
Total Diversified Telecommunication Services | 18,467,647 | ||||||||||
Electric Utilities – 1.7% | |||||||||||
43,811 | Companhia Energetica de Minas Gerais, Sponsored ADR | 392,985 | |||||||||
62,044 | Duke Energy Corporation | 4,187,970 | |||||||||
112,676 | Great Plains Energy Incorporated | 2,539,717 | |||||||||
50,368 | OGE Energy Corp. | 3,435,098 | |||||||||
129,707 | Pepco Holdings, Inc. | 2,614,893 | |||||||||
25,438 | Pinnacle West Capital Corporation | 1,411,046 | |||||||||
Total Electric Utilities | 14,581,709 | ||||||||||
Electrical Equipment – 1.5% | |||||||||||
14,520 | Eaton PLC | 955,561 | |||||||||
51,549 | Emerson Electric Company | 2,811,482 | |||||||||
11,240 | Hubbell Incorporated, Class B | 1,112,760 | |||||||||
31,575 | Rockwell Automation, Inc. | 2,625,145 | |||||||||
42,974 | Roper Industries Inc. | 5,338,230 | |||||||||
Total Electrical Equipment | 12,843,178 | ||||||||||
Electronic Equipment & Instruments – 0.1% | |||||||||||
88,036 | Corning Incorporated | 1,252,752 | |||||||||
Energy Equipment & Services – 1.7% | |||||||||||
25,308 | Diamond Offshore Drilling, Inc. | 1,740,937 | |||||||||
36,079 | Ensco International PLC, Class A, Sponsored ADR | 2,096,911 | |||||||||
90,607 | Halliburton Company | 3,780,124 | |||||||||
54,107 | Patterson-UTI Energy, Inc. | 1,047,241 | |||||||||
75,828 | Schlumberger Limited | 5,433,834 | |||||||||
17,510 | Tidewater Inc. | 997,545 | |||||||||
Total Energy Equipment & Services | 15,096,592 | ||||||||||
Food & Staples Retailing – 1.8% | |||||||||||
93,299 | CVS Caremark Corporation | 5,334,837 | |||||||||
82,219 | Kroger Co. | 2,839,844 | |||||||||
38,974 | SUPERVALU INC., (2) | 242,418 | |||||||||
62,176 | Walgreen Co. | 2,748,179 | |||||||||
57,835 | Wal-Mart Stores, Inc. | 4,308,129 | |||||||||
Total Food & Staples Retailing | 15,473,407 | ||||||||||
Food Products – 0.8% | |||||||||||
49,868 | Kraft Foods Inc., Class A | 2,786,125 | |||||||||
149,606 | Mondelez International Inc. | 4,268,259 | |||||||||
Total Food Products | 7,054,384 | ||||||||||
Gas Utilities – 0.9% | |||||||||||
34,085 | Atmos Energy Corporation | 1,399,530 | |||||||||
41,373 | National Fuel Gas Company | 2,397,565 | |||||||||
99,610 | ONEOK, Inc. | 4,114,889 | |||||||||
Total Gas Utilities | 7,911,984 |
Nuveen Investments
26
Shares | Description (1) | Value | |||||||||
Health Care Equipment & Supplies – 1.7% | |||||||||||
91,444 | Abbott Laboratories | $ | 3,189,567 | ||||||||
68,517 | Baxter International, Inc. | 4,746,173 | |||||||||
36,821 | Hill Rom Holdings Inc. | 1,240,131 | |||||||||
97,109 | Hologic Inc., (2) | 1,874,204 | |||||||||
69,279 | Medtronic, Inc. | 3,565,790 | |||||||||
Total Health Care Equipment & Supplies | 14,615,865 | ||||||||||
Health Care Providers & Services – 2.2% | |||||||||||
52,702 | Aetna Inc. | 3,348,685 | |||||||||
62,293 | Brookdale Senior Living Inc., (2) | 1,647,027 | |||||||||
106,974 | Express Scripts, (2) | 6,599,226 | |||||||||
75,497 | UnitedHealth Group Incorporated | 4,943,544 | |||||||||
37,032 | Wellpoint Inc. | 3,030,699 | |||||||||
Total Health Care Providers & Services | 19,569,181 | ||||||||||
Hotels, Restaurants & Leisure – 1.3% | |||||||||||
51,390 | International Game Technology | 858,727 | |||||||||
8,487 | Las Vegas Sands | 449,217 | |||||||||
63,671 | McDonald's Corporation | 6,303,429 | |||||||||
21,179 | Starwood Hotels & Resorts Worldwide, Inc. | 1,338,301 | |||||||||
23,029 | Wynn Resorts Ltd | 2,947,712 | |||||||||
Total Hotels, Restaurants & Leisure | 11,897,386 | ||||||||||
Household Durables – 0.6% | |||||||||||
68,264 | KB Home | 1,340,022 | |||||||||
54,753 | Newell Rubbermaid Inc. | 1,437,266 | |||||||||
19,851 | Whirlpool Corporation | 2,270,160 | |||||||||
Total Household Durables | 5,047,448 | ||||||||||
Household Products – 1.8% | |||||||||||
83,232 | Colgate-Palmolive Company | 4,768,361 | |||||||||
139,512 | Procter & Gamble Company | 10,741,029 | |||||||||
Total Household Products | 15,509,390 | ||||||||||
Industrial Conglomerates – 1.7% | |||||||||||
21,774 | 3M Co. | 2,380,987 | |||||||||
540,880 | General Electric Company | 12,543,007 | |||||||||
Total Industrial Conglomerates | 14,923,994 | ||||||||||
Insurance – 2.6% | |||||||||||
59,372 | Allstate Corporation | 2,856,981 | |||||||||
23,207 | American International Group | 1,037,353 | |||||||||
26,066 | Arthur J. Gallagher & Co. | 1,138,824 | |||||||||
82,207 | Berkshire Hathaway Inc., Class B, (2) | 9,200,607 | |||||||||
92,800 | CNO Financial Group Inc. | 1,202,688 | |||||||||
65,958 | Genworth Financial Inc., Class A, (2) | 752,581 | |||||||||
23,657 | Hartford Financial Services Group, Inc. | 731,474 | |||||||||
13,952 | Kemper Corporation | 477,856 | |||||||||
35,717 | Lincoln National Corporation | 1,302,599 | |||||||||
103,489 | Marsh & McLennan Companies, Inc. | 4,131,281 | |||||||||
Total Insurance | 22,832,244 | ||||||||||
Internet & Catalog Retail – 2.1% | |||||||||||
51,843 | Amazon.com, Inc., (2) | 14,396,283 | |||||||||
27,170 | HSN, Inc. | 1,459,572 | |||||||||
2,747 | Priceline.com Incorporated, (2) | 2,272,126 | |||||||||
Total Internet & Catalog Retail | 18,127,981 |
Nuveen Investments
27
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Internet Software & Services – 4.9% | |||||||||||
39,603 | Akamai Technologies, Inc., (2) | $ | 1,685,108 | ||||||||
58,343 | Earthlink, Inc. | 362,310 | |||||||||
194,369 | eBay Inc., (2) | 10,052,765 | |||||||||
30,939 | Google Inc., Class A, (2) | 27,237,767 | |||||||||
22,576 | IAC/InterActiveCorp. | 1,073,715 | |||||||||
59,649 | VeriSign, Inc., (2) | 2,663,924 | |||||||||
Total Internet Software & Services | 43,075,589 | ||||||||||
IT Services – 3.6% | |||||||||||
117,025 | Automatic Data Processing, Inc. | 8,058,341 | |||||||||
61,069 | Fidelity National Information Services | 2,616,196 | |||||||||
54,830 | International Business Machines Corporation (IBM) | 10,478,561 | |||||||||
14,762 | Lender Processing Services Inc. | 477,551 | |||||||||
108,876 | Paychex, Inc. | 3,976,152 | |||||||||
32,522 | Visa Inc., Class A | 5,943,395 | |||||||||
Total IT Services | 31,550,196 | ||||||||||
Leisure Equipment & Products – 0.7% | |||||||||||
70,638 | Mattel, Inc. | 3,200,608 | |||||||||
29,666 | Polaris Industries Inc. | 2,818,270 | |||||||||
Total Leisure Equipment & Products | 6,018,878 | ||||||||||
Machinery – 1.9% | |||||||||||
36,452 | Caterpillar Inc. | 3,006,925 | |||||||||
18,970 | Deere & Company | 1,541,313 | |||||||||
43,913 | Graco Inc. | 2,775,741 | |||||||||
23,133 | Joy Global Inc. | 1,122,644 | |||||||||
27,707 | SPX Corporation | 1,994,350 | |||||||||
40,513 | Stanley Black & Decker Inc. | 3,131,655 | |||||||||
50,568 | Timken Company | 2,845,967 | |||||||||
Total Machinery | 16,418,595 | ||||||||||
Media – 3.6% | |||||||||||
310,268 | Comcast Corporation, Special Class A | 12,308,332 | |||||||||
97,817 | New York Times, Class A, (2) | 1,081,856 | |||||||||
300,675 | News Corporation, Class A | 9,802,005 | |||||||||
58,689 | Omnicom Group, Inc. | 3,689,777 | |||||||||
82,498 | Regal Entertainment Group, Class A | 1,476,714 | |||||||||
60,260 | Walt Disney Company | 3,805,419 | |||||||||
Total Media | 32,164,103 | ||||||||||
Metals & Mining – 0.6% | |||||||||||
268,308 | Alcoa Inc. | 2,098,169 | |||||||||
20,083 | Barrick Gold Corporation | 316,106 | |||||||||
53,761 | Freeport-McMoRan Copper & Gold, Inc. | 1,484,341 | |||||||||
148,596 | Hecla Mining Company | 442,816 | |||||||||
28,154 | Southern Copper Corporation | 777,613 | |||||||||
Total Metals & Mining | 5,119,045 | ||||||||||
Multiline Retail – 1.0% | |||||||||||
52,643 | Macy's, Inc. | 2,526,864 | |||||||||
44,360 | Nordstrom, Inc. | 2,658,938 | |||||||||
21,415 | Sears Holding Corporation, (2) | 901,143 | |||||||||
37,279 | Target Corporation | 2,567,032 | |||||||||
Total Multiline Retail | 8,653,977 |
Nuveen Investments
28
Shares | Description (1) | Value | |||||||||
Multi-Utilities – 0.6% | |||||||||||
62,041 | Ameren Corporation | $ | 2,136,692 | ||||||||
97,043 | Public Service Enterprise Group Incorporated | 3,169,424 | |||||||||
Total Multi-Utilities | 5,306,116 | ||||||||||
Oil, Gas & Consumable Fuels – 5.5% | |||||||||||
97,595 | Chevron Corporation | 11,549,392 | |||||||||
2,747 | CNOOC Limited, Sponsored ADR | 460,068 | |||||||||
81,203 | ConocoPhillips | 4,912,781 | |||||||||
211,742 | Exxon Mobil Corporation | 19,130,890 | |||||||||
27,119 | Hess Corporation | 1,803,142 | |||||||||
51,327 | Occidental Petroleum Corporation | 4,579,908 | |||||||||
3,274 | PetroChina Company Limited, Sponsored ADR | 362,334 | |||||||||
54,850 | Phillips 66 | 3,231,213 | |||||||||
122,639 | SandRidge Energy Inc., (2) | 583,762 | |||||||||
39,133 | StatoilHydro ASA, Sponsored ADR | 809,662 | |||||||||
23,753 | Suncor Energy, Inc. | 700,476 | |||||||||
Total Oil, Gas & Consumable Fuels | 48,123,628 | ||||||||||
Pharmaceuticals – 5.2% | |||||||||||
91,444 | AbbVie Inc. | 3,780,295 | |||||||||
151,837 | Bristol-Myers Squibb Company | 6,785,596 | |||||||||
106,819 | Eli Lilly and Company | 5,246,949 | |||||||||
1,112 | GlaxoSmithKline PLC, Sponsored ADR | 55,567 | |||||||||
137,675 | Johnson & Johnson | 11,820,776 | |||||||||
200,466 | Merck & Company Inc. | 9,311,646 | |||||||||
308,024 | Pfizer Inc. | 8,627,752 | |||||||||
Total Pharmaceuticals | 45,628,581 | ||||||||||
Professional Services – 0.2% | |||||||||||
29,079 | Manpower Inc. | 1,593,529 | |||||||||
18,692 | Resources Connection, Inc. | 216,827 | |||||||||
Total Professional Services | 1,810,356 | ||||||||||
Real Estate Investment Trust – 1.4% | |||||||||||
60,679 | Apartment Investment & Management Company, Class A | 1,822,797 | |||||||||
69,975 | Brandywine Realty Trust | 946,062 | |||||||||
34,687 | CBL & Associates Properties Inc. | 742,996 | |||||||||
129,993 | CubeSmart | 2,077,288 | |||||||||
114,294 | DCT Industrial Trust Inc. | 817,202 | |||||||||
43,378 | Health Care REIT, Inc. | 2,907,627 | |||||||||
79,809 | Lexington Corporate Properties Trust | 932,169 | |||||||||
46,608 | Liberty Property Trust | 1,722,632 | |||||||||
8,511 | Ventas Inc. | 591,174 | |||||||||
Total Real Estate Investment Trust | 12,559,947 | ||||||||||
Road & Rail – 0.7% | |||||||||||
41,968 | Union Pacific Corporation | 6,474,823 | |||||||||
Semiconductors & Equipment – 3.4% | |||||||||||
98,918 | Altera Corporation | 3,263,305 | |||||||||
64,144 | Analog Devices, Inc. | 2,890,329 | |||||||||
107,440 | Broadcom Corporation, Class A | 3,627,174 | |||||||||
699,018 | Intel Corporation | 16,930,216 | |||||||||
26,060 | Intersil Holding Corporation, Class A | 203,789 | |||||||||
81,111 | Linear Technology Corporation | 2,988,129 | |||||||||
Total Semiconductors & Equipment | 29,902,942 |
Nuveen Investments
29
JSN
Nuveen Equity Premium Opportunity Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Software – 6.7% | |||||||||||
154,461 | Activision Blizzard Inc. | $ | 2,202,614 | ||||||||
134,980 | Adobe Systems Incorporated, (2) | 6,149,689 | |||||||||
79,219 | Autodesk, Inc., (2) | 2,688,693 | |||||||||
920,600 | Microsoft Corporation | 31,788,318 | |||||||||
533,031 | Oracle Corporation | 16,374,712 | |||||||||
Total Software | 59,204,026 | ||||||||||
Specialty Retail – 2.2% | |||||||||||
20,823 | Abercrombie & Fitch Co., Class A | 942,241 | |||||||||
59,432 | American Eagle Outfitters, Inc. | 1,085,228 | |||||||||
51,495 | Best Buy Co., Inc. | 1,407,358 | |||||||||
58,779 | CarMax, Inc., (2) | 2,713,239 | |||||||||
73,397 | Gap, Inc. | 3,062,857 | |||||||||
38,435 | Home Depot, Inc. | 2,977,559 | |||||||||
58,013 | Limited Brands Inc. | 2,857,140 | |||||||||
111,815 | Lowe's Companies, Inc. | 4,573,233 | |||||||||
Total Specialty Retail | 19,618,855 | ||||||||||
Thrifts & Mortgage Finance – 0.1% | |||||||||||
40,800 | MGIC Investment Corporation, (2) | 247,656 | |||||||||
56,714 | New York Community Bancorp Inc. | 793,996 | |||||||||
Total Thrifts & Mortgage Finance | 1,041,652 | ||||||||||
Tobacco – 1.6% | |||||||||||
72,934 | Altria Group, Inc. | 2,551,961 | |||||||||
111,624 | Philip Morris International | 9,668,871 | |||||||||
36,132 | Reynolds American Inc. | 1,747,705 | |||||||||
Total Tobacco | 13,968,537 | ||||||||||
Wireless Telecommunication Services – 0.4% | |||||||||||
4,018 | China Mobile Limited, Sponsored ADR | 208,012 | |||||||||
444,739 | Sprint Nextel Corporation, (2) | 3,122,068 | |||||||||
Total Wireless Telecommunication Services | 3,330,080 | ||||||||||
Total Common Stocks (cost $558,153,682) | 861,463,440 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 6.0% | |||||||||||||||||||
$ | 53,080 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/13, repurchase price $53,080,044, collateralized by $53,280,000 U.S. Treasury Notes, 1.750%, due 10/31/18, value $54,145,800 | 0.010 | % | 7/01/13 | $ | 53,080,000 | ||||||||||||
Total Short-Term Investments (cost $53,080,000) | 53,080,000 | ||||||||||||||||||
Total Investments (cost $611,233,682) – 103.9% | 914,543,440 | ||||||||||||||||||
Other Assets Less Liabilities – (3.9)% (3) | (34,568,097 | ) | |||||||||||||||||
Net Assets – 100% | $ | 879,975,343 |
Nuveen Investments
30
Investments in Derivatives as of June 30, 2013
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value (3) | ||||||||||||||||||
(919 | ) | MINI-NASDAQ-100 Index | $ | (26,191,500 | ) | 7/20/13 | $ | 285.0 | $ | (732,902 | ) | ||||||||||||
(921 | ) | MINI-NASDAQ-100 Index | (26,478,750 | ) | 7/20/13 | 287.5 | (557,205 | ) | |||||||||||||||
(919 | ) | MINI-NASDAQ-100 Index | (26,651,000 | ) | 7/20/13 | 290.0 | (419,523 | ) | |||||||||||||||
(900 | ) | MINI-NASDAQ-100 Index | (26,325,000 | ) | 7/20/13 | 292.5 | (292,500 | ) | |||||||||||||||
(949 | ) | MINI-NASDAQ-100 Index | (27,995,500 | ) | 7/20/13 | 295.0 | (170,346 | ) | |||||||||||||||
(914 | ) | MINI-NASDAQ-100 Index | (26,049,000 | ) | 8/17/13 | 285.0 | (902,575 | ) | |||||||||||||||
(940 | ) | MINI-NASDAQ-100 Index | (27,730,000 | ) | 8/17/13 | 295.0 | (392,450 | ) | |||||||||||||||
(889 | ) | MINI-NASDAQ-100 Index | (26,447,750 | ) | 8/17/13 | 297.5 | (270,701 | ) | |||||||||||||||
(538 | ) | S&P 500® Index | (83,390,000 | ) | 7/20/13 | 1,550.0 | (3,338,290 | ) | |||||||||||||||
(476 | ) | S&P 500® Index | (74,970,000 | ) | 7/20/13 | 1,575.0 | (2,013,480 | ) | |||||||||||||||
(884 | ) | S&P 500® Index | (141,440,000 | ) | 7/20/13 | 1,600.0 | (2,249,780 | ) | |||||||||||||||
(978 | ) | S&P 500® Index | (158,925,000 | ) | 7/20/13 | 1,625.0 | (1,217,610 | ) | |||||||||||||||
(359 | ) | S&P 500® Index | (56,542,500 | ) | 8/17/13 | 1,575.0 | (1,942,190 | ) | |||||||||||||||
(764 | ) | S&P 500® Index | (122,240,000 | ) | 8/17/13 | 1,600.0 | (2,880,280 | ) | |||||||||||||||
(11,350 | ) | Total Call Options Written (premiums received $20,452,710) | $ | (851,376,000 | ) |
|
| $ | (17,379,832 | ) |
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 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 shown 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 listed within Investments in Derivatives as of the end of the reporting period.
(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, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.6% (5) | |||||||||||
Aerospace & Defense – 1.3% | |||||||||||
15,279 | Boeing Company | $ | 1,565,181 | ||||||||
16,032 | Honeywell International Inc. | 1,271,979 | |||||||||
18,715 | United Technologies Corporation | 1,739,372 | |||||||||
Total Aerospace & Defense | 4,576,532 | ||||||||||
Air Freight & Logistics – 0.6% | |||||||||||
23,585 | United Parcel Service, Inc., Class B | 2,039,631 | |||||||||
Airlines – 0.2% | |||||||||||
12,008 | Delta Air Lines, Inc. | 224,670 | |||||||||
26,363 | Southwest Airlines Co. | 339,819 | |||||||||
Total Airlines | 564,489 | ||||||||||
Auto Components – 0.1% | |||||||||||
10,102 | American Axle and Manufacturing Holdings Inc., (2) | 188,200 | |||||||||
Automobiles – 0.5% | |||||||||||
49,165 | Ford Motor Company | 760,583 | |||||||||
14,597 | Harley-Davidson, Inc. | 800,208 | |||||||||
Total Automobiles | 1,560,791 | ||||||||||
Beverages – 1.3% | |||||||||||
36,625 | Coca-Cola Company | 1,469,029 | |||||||||
15,729 | Monster Beverage Corporation, (2) | 955,851 | |||||||||
25,502 | PepsiCo, Inc. | 2,085,809 | |||||||||
Total Beverages | 4,510,689 | ||||||||||
Biotechnology – 4.6% | |||||||||||
55,224 | Amgen Inc. | 5,448,400 | |||||||||
36,471 | Celgene Corporation, (2) | 4,263,825 | |||||||||
118,127 | Gilead Sciences, Inc., (2) | 6,049,284 | |||||||||
Total Biotechnology | 15,761,509 | ||||||||||
Capital Markets – 1.1% | |||||||||||
32,441 | Bank of New York Company, Inc. | 909,970 | |||||||||
62,652 | Charles Schwab Corporation | 1,330,102 | |||||||||
1,581 | Goldman Sachs Group, Inc. | 239,126 | |||||||||
30,105 | Morgan Stanley | 735,465 | |||||||||
17,346 | Waddell & Reed Financial, Inc., Class A | 754,551 | |||||||||
Total Capital Markets | 3,969,214 | ||||||||||
Chemicals – 1.0% | |||||||||||
973 | CF Industries Holdings, Inc. | 166,869 | |||||||||
18,504 | Dow Chemical Company | 595,274 | |||||||||
25,684 | E.I. Du Pont de Nemours and Company | 1,348,410 | |||||||||
10,514 | Monsanto Company | 1,038,783 |
Nuveen Investments
32
Shares | Description (1) | Value | |||||||||
Chemicals (continued) | |||||||||||
4,219 | Mosaic Company | $ | 227,024 | ||||||||
Total Chemicals | 3,376,360 | ||||||||||
Commercial Banks – 1.7% | |||||||||||
56,406 | U.S. Bancorp | 2,039,077 | |||||||||
95,589 | Wells Fargo & Company | 3,944,958 | |||||||||
Total Commercial Banks | 5,984,035 | ||||||||||
Commercial Services & Supplies – 0.0% | |||||||||||
10,378 | R.R. Donnelley & Sons Company | 145,396 | |||||||||
Communications Equipment – 4.9% | |||||||||||
6,820 | Aviat Networks Inc., (2) | 17,868 | |||||||||
374,559 | Cisco Systems, Inc. | 9,105,529 | |||||||||
131,018 | QUALCOMM, Inc. | 8,002,579 | |||||||||
Total Communications Equipment | 17,125,976 | ||||||||||
Computers & Peripherals – 7.8% | |||||||||||
61,423 | Apple, Inc. | 24,328,422 | |||||||||
28,119 | EMC Corporation | 664,171 | |||||||||
19,045 | Hewlett-Packard Company | 472,316 | |||||||||
24,916 | Western Digital Corporation | 1,547,034 | |||||||||
Total Computers & Peripherals | 27,011,943 | ||||||||||
Consumer Finance – 0.5% | |||||||||||
8,310 | American Express Company | 621,256 | |||||||||
6,671 | Capital One Financial Corporation | 419,006 | |||||||||
27,215 | SLM Corporation | 622,135 | |||||||||
Total Consumer Finance | 1,662,397 | ||||||||||
Containers & Packaging – 0.3% | |||||||||||
19,780 | Packaging Corp. of America | 968,429 | |||||||||
4,824 | Sonoco Products Company | 166,766 | |||||||||
Total Containers & Packaging | 1,135,195 | ||||||||||
Distributors – 0.1% | |||||||||||
3,449 | Genuine Parts Company | 269,263 | |||||||||
Diversified Consumer Services – 0.1% | |||||||||||
4,119 | ITT Educational Services, Inc., (2) | 100,504 | |||||||||
21,475 | Service Corporation International | 387,194 | |||||||||
Total Diversified Consumer Services | 487,698 | ||||||||||
Diversified Financial Services – 2.4% | |||||||||||
149,582 | Bank of America Corporation | 1,923,625 | |||||||||
39,530 | Citigroup Inc. | 1,896,254 | |||||||||
19,235 | CME Group, Inc. | 1,461,475 | |||||||||
39,922 | JPMorgan Chase & Co. | 2,107,482 | |||||||||
13,902 | Moody's Corporation | 847,049 | |||||||||
Total Diversified Financial Services | 8,235,885 | ||||||||||
Diversified Telecommunication Services – 1.5% | |||||||||||
63,546 | AT&T Inc. | 2,249,528 | |||||||||
1 | Frontier Communications Corporation | 4 | |||||||||
59,414 | Verizon Communications Inc. | 2,990,901 | |||||||||
Total Diversified Telecommunication Services | 5,240,433 |
Nuveen Investments
33
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Electric Utilities – 1.5% | |||||||||||
30,093 | Duke Energy Corporation | $ | 2,031,277 | ||||||||
48,358 | Great Plains Energy Incorporated | 1,089,989 | |||||||||
6,884 | OGE Energy Corp. | 469,489 | |||||||||
28,722 | Pinnacle West Capital Corporation | 1,593,209 | |||||||||
Total Electric Utilities | 5,183,964 | ||||||||||
Electrical Equipment – 1.7% | |||||||||||
33,441 | Eaton PLC | 2,200,752 | |||||||||
28,532 | Emerson Electric Company | 1,556,135 | |||||||||
11,238 | Hubbell Incorporated, Class B | 1,112,562 | |||||||||
14,091 | Rockwell Automation, Inc. | 1,171,526 | |||||||||
Total Electrical Equipment | 6,040,975 | ||||||||||
Electronic Equipment & Instruments – 0.6% | |||||||||||
17,200 | Amphenol Corporation, Class A | 1,340,568 | |||||||||
39,646 | Corning Incorporated | 564,163 | |||||||||
Total Electronic Equipment & Instruments | 1,904,731 | ||||||||||
Energy Equipment & Services – 1.3% | |||||||||||
23,374 | Cameron International Corporation, (2) | 1,429,554 | |||||||||
9,396 | Diamond Offshore Drilling, Inc. | 646,351 | |||||||||
29,446 | Halliburton Company | 1,228,487 | |||||||||
18,594 | Schlumberger Limited | 1,332,446 | |||||||||
Total Energy Equipment & Services | 4,636,838 | ||||||||||
Food & Staples Retailing – 1.8% | |||||||||||
33,338 | CVS Caremark Corporation | 1,906,267 | |||||||||
27,808 | Kroger Co. | 960,488 | |||||||||
23,214 | Walgreen Co. | 1,026,059 | |||||||||
31,613 | Wal-Mart Stores, Inc. | 2,354,852 | |||||||||
Total Food & Staples Retailing | 6,247,666 | ||||||||||
Food Products – 1.0% | |||||||||||
10,080 | Archer-Daniels-Midland Company | 341,813 | |||||||||
15,863 | Kraft Foods Inc., Class A | 886,266 | |||||||||
72,807 | Mondelez International Inc. | 2,077,184 | |||||||||
Total Food Products | 3,305,263 | ||||||||||
Gas Utilities – 0.4% | |||||||||||
21,576 | AGL Resources Inc. | 924,747 | |||||||||
15,026 | Piedmont Natural Gas Company | 506,977 | |||||||||
Total Gas Utilities | 1,431,724 | ||||||||||
Health Care Equipment & Supplies – 1.6% | |||||||||||
41,688 | Abbott Laboratories | 1,454,077 | |||||||||
16,835 | Baxter International, Inc. | 1,166,160 | |||||||||
9,327 | CareFusion Corporation, (2) | 343,700 | |||||||||
5,822 | Covidien PLC | 365,854 | |||||||||
12,334 | Hill Rom Holdings Inc. | 415,409 | |||||||||
11,631 | Medtronic, Inc. | 598,648 | |||||||||
11,540 | Saint Jude Medical Inc. | 526,570 | |||||||||
8,617 | Zimmer Holdings, Inc. | 645,758 | |||||||||
Total Health Care Equipment & Supplies | 5,516,176 | ||||||||||
Health Care Providers & Services – 2.6% | |||||||||||
13,759 | Brookdale Senior Living Inc., (2) | 363,788 | |||||||||
23,480 | Cardinal Health, Inc. | 1,108,256 |
Nuveen Investments
34
Shares | Description (1) | Value | |||||||||
Health Care Providers & Services (continued) | |||||||||||
50,126 | Express Scripts, (2) | $ | 3,092,273 | ||||||||
1,520 | McKesson HBOC Inc. | 174,040 | |||||||||
11,450 | Omnicare, Inc. | 546,279 | |||||||||
12,175 | Tenet Healthcare Corporation, (2) | 561,267 | |||||||||
19,406 | UnitedHealth Group Incorporated | 1,270,705 | |||||||||
20,106 | Universal Health Services, Inc., Class B | 1,346,298 | |||||||||
8,528 | Wellpoint Inc. | 697,932 | |||||||||
Total Health Care Providers & Services | 9,160,838 | ||||||||||
Hotels, Restaurants & Leisure – 1.7% | |||||||||||
20,714 | Carnival Corporation | 710,283 | |||||||||
17,543 | International Game Technology | 293,144 | |||||||||
25,719 | McDonald's Corporation | 2,546,181 | |||||||||
12,224 | Starwood Hotels & Resorts Worldwide, Inc. | 772,435 | |||||||||
84,855 | The Wendy's Company | 494,705 | |||||||||
19,573 | Tim Hortons Inc. | 1,059,486 | |||||||||
Total Hotels, Restaurants & Leisure | 5,876,234 | ||||||||||
Household Durables – 0.8% | |||||||||||
41,536 | KB Home | 815,352 | |||||||||
36,936 | Newell Rubbermaid Inc. | 969,570 | |||||||||
7,376 | Whirlpool Corporation | 843,519 | |||||||||
Total Household Durables | 2,628,441 | ||||||||||
Household Products – 0.7% | |||||||||||
32,355 | Procter & Gamble Company | 2,491,011 | |||||||||
Industrial Conglomerates – 1.1% | |||||||||||
9,403 | 3M Co. | 1,028,218 | |||||||||
13,006 | Danaher Corporation | 823,280 | |||||||||
82,528 | General Electric Company | 1,913,824 | |||||||||
Total Industrial Conglomerates | 3,765,322 | ||||||||||
Insurance – 1.4% | |||||||||||
12,439 | American International Group | 556,023 | |||||||||
824 | Arch Capital Group Limited, (2) | 42,362 | |||||||||
3,641 | Berkshire Hathaway Inc., Class B, (2) | 407,501 | |||||||||
26,516 | Fidelity National Title Group Inc., Class A | 631,346 | |||||||||
24,192 | Marsh & McLennan Companies, Inc. | 965,745 | |||||||||
13,163 | Prudential Financial, Inc. | 961,294 | |||||||||
15,488 | Travelers Companies, Inc. | 1,237,801 | |||||||||
Total Insurance | 4,802,072 | ||||||||||
Internet & Catalog Retail – 2.7% | |||||||||||
32,054 | Amazon.com, Inc., (2) | 8,901,075 | |||||||||
10,391 | HSN, Inc. | 558,205 | |||||||||
Total Internet & Catalog Retail | 9,459,280 | ||||||||||
Internet Software & Services – 7.6% | |||||||||||
30,462 | Akamai Technologies, Inc., (2) | 1,296,158 | |||||||||
2,017 | AOL Inc., (2) | 73,580 | |||||||||
16,544 | Baidu.com, Inc., Sponsored ADR, (2) | 1,563,904 | |||||||||
92,095 | eBay Inc., (2) | 4,763,153 | |||||||||
17,266 | Google Inc., Class A, (2) | 15,200,468 | |||||||||
20,300 | IAC/InterActiveCorp. | 965,468 | |||||||||
102,391 | Yahoo! Inc., (2) | 2,571,038 | |||||||||
Total Internet Software & Services | 26,433,769 |
Nuveen Investments
35
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
IT Services – 3.2% | |||||||||||
46,267 | Automatic Data Processing, Inc. | $ | 3,185,946 | ||||||||
23,280 | Fidelity National Information Services | 997,315 | |||||||||
8,158 | Global Payments Inc. | 377,879 | |||||||||
14,822 | Infosys Technologies Limited, Sponsored ADR | 610,518 | |||||||||
10,431 | International Business Machines Corporation (IBM) | 1,993,468 | |||||||||
12,871 | Lender Processing Services Inc. | 416,377 | |||||||||
58,743 | Paychex, Inc. | 2,145,294 | |||||||||
7,718 | Visa Inc., Class A | 1,410,464 | |||||||||
Total IT Services | 11,137,261 | ||||||||||
Life Sciences Tools & Services – 0.2% | |||||||||||
15,384 | Agilent Technologies, Inc. | 657,820 | |||||||||
Machinery – 1.2% | |||||||||||
13,470 | Caterpillar Inc. | 1,111,140 | |||||||||
7,028 | Deere & Company | 571,025 | |||||||||
22,531 | Graco Inc. | 1,424,185 | |||||||||
16,187 | SPX Corporation | 1,165,140 | |||||||||
Total Machinery | 4,271,490 | ||||||||||
Media – 5.1% | |||||||||||
23,415 | CBS Corporation, Class B | 1,144,291 | |||||||||
153,751 | Comcast Corporation, Special Class A | 6,099,302 | |||||||||
52,989 | DirecTV, (2) | 3,265,182 | |||||||||
2,751 | Liberty Media Corporation, (2) | 348,717 | |||||||||
51,552 | News Corporation, Class B | 1,691,937 | |||||||||
20,124 | Omnicom Group, Inc. | 1,265,196 | |||||||||
2,751 | Starz, (2) | 60,797 | |||||||||
6,011 | Time Warner Cable, Class A | 676,117 | |||||||||
21,163 | Time Warner Inc. | 1,223,645 | |||||||||
30,876 | Walt Disney Company | 1,949,819 | |||||||||
Total Media | 17,725,003 | ||||||||||
Metals & Mining – 0.2% | |||||||||||
4,949 | AngloGold Ashanti Limited, Sponsored ADR | 70,771 | |||||||||
7,972 | Cliffs Natural Resources Inc. | 129,545 | |||||||||
54,923 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 152,137 | |||||||||
5,432 | Freeport-McMoRan Copper & Gold, Inc. | 149,978 | |||||||||
1,736 | Newmont Mining Corporation | 51,993 | |||||||||
7,686 | United States Steel Corporation | 134,736 | |||||||||
Total Metals & Mining | 689,160 | ||||||||||
Multiline Retail – 0.3% | |||||||||||
10,865 | Family Dollar Stores, Inc. | 676,998 | |||||||||
4,575 | J.C. Penney Company, Inc., (2) | 78,141 | |||||||||
4,511 | Kohl's Corporation | 227,851 | |||||||||
Total Multiline Retail | 982,990 | ||||||||||
Multi-Utilities – 0.4% | |||||||||||
21,316 | Integrys Energy Group, Inc. | 1,247,625 | |||||||||
Oil, Gas & Consumable Fuels – 4.2% | |||||||||||
1,231 | Anadarko Petroleum Corporation | 105,780 | |||||||||
4,671 | Cabot Oil & Gas Corporation | 331,734 | |||||||||
36,527 | Chevron Corporation | 4,322,605 | |||||||||
39,706 | ConocoPhillips | 2,402,213 | |||||||||
59,547 | Exxon Mobil Corporation | 5,380,071 | |||||||||
1,606 | Marathon Oil Corporation | 55,535 |
Nuveen Investments
36
Shares | Description (1) | Value | |||||||||
Oil, Gas & Consumable Fuels (continued) | |||||||||||
6,095 | Occidental Petroleum Corporation | $ | 543,857 | ||||||||
22,649 | Phillips 66 | 1,334,253 | |||||||||
2,785 | Royal Dutch Shell PLC, Class A, Sponsored ADR | 177,683 | |||||||||
Total Oil, Gas & Consumable Fuels | 14,653,731 | ||||||||||
Paper & Forest Products – 0.3% | |||||||||||
21,984 | International Paper Company | 974,111 | |||||||||
Pharmaceuticals – 4.0% | |||||||||||
38,938 | AbbVie Inc. | 1,609,697 | |||||||||
13,538 | Allergan, Inc. | 1,140,441 | |||||||||
45,036 | Bristol-Myers Squibb Company | 2,012,659 | |||||||||
7,517 | Eli Lilly and Company | 369,235 | |||||||||
13,675 | Forest Laboratories, Inc., (2) | 560,675 | |||||||||
7,458 | GlaxoSmithKline PLC, Sponsored ADR | 372,676 | |||||||||
20,631 | Johnson & Johnson | 1,771,378 | |||||||||
73,080 | Merck & Company Inc. | 3,394,566 | |||||||||
4,647 | Novartis AG, Sponsored ADR | 328,589 | |||||||||
82,836 | Pfizer Inc. | 2,320,236 | |||||||||
Total Pharmaceuticals | 13,880,152 | ||||||||||
Professional Services – 0.6% | |||||||||||
18,950 | Manpower Inc. | 1,038,460 | |||||||||
30,314 | Robert Half International Inc. | 1,007,334 | |||||||||
Total Professional Services | 2,045,794 | ||||||||||
Real Estate Investment Trust – 1.1% | |||||||||||
18,413 | Apartment Investment & Management Company, Class A | 553,127 | |||||||||
28,958 | CubeSmart | 462,749 | |||||||||
4,590 | Developers Diversified Realty Corporation | 76,424 | |||||||||
40,126 | Senior Housing Properties Trust | 1,040,467 | |||||||||
25,511 | Ventas Inc. | 1,771,994 | |||||||||
Total Real Estate Investment Trust | 3,904,761 | ||||||||||
Road & Rail – 0.2% | |||||||||||
23,916 | CSX Corporation | 554,612 | |||||||||
Semiconductors & Equipment – 5.7% | |||||||||||
54,140 | Advanced Micro Devices, Inc., (2) | 220,891 | |||||||||
49,030 | Altera Corporation | 1,617,500 | |||||||||
25,698 | Analog Devices, Inc. | 1,157,952 | |||||||||
65,680 | Applied Materials, Inc. | 979,289 | |||||||||
1,253 | ASML Holding N.V., Sponsored ADR | 99,112 | |||||||||
93,518 | Atmel Corporation, (2) | 687,357 | |||||||||
48,224 | Broadcom Corporation, Class A | 1,628,042 | |||||||||
4,697 | Cree, Inc., (2) | 299,950 | |||||||||
11,761 | Cypress Semiconductor Corporation, (2) | 126,196 | |||||||||
28,948 | Fairchild Semiconductor International Inc., Class A, (2) | 399,482 | |||||||||
17,789 | Integrated Device Technology, Inc., (2) | 141,245 | |||||||||
363,454 | Intel Corporation | 8,802,856 | |||||||||
2,596 | Intersil Holding Corporation, Class A | 20,301 | |||||||||
8,733 | Lam Research Corporation, (2) | 387,221 | |||||||||
45,919 | Linear Technology Corporation | 1,691,656 | |||||||||
35,700 | LSI Logic Corporation | 254,898 | |||||||||
76,193 | NVIDIA Corporation | 1,068,988 | |||||||||
5,819 | SunEdison Inc., (2) | 47,541 | |||||||||
2,774 | Taiwan Semiconductor Manufacturing Company Limited, Sponsored ADR | 50,820 | |||||||||
Total Semiconductors & Equipment | 19,681,297 |
Nuveen Investments
37
JLA
Nuveen Equity Premium Advantage Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Software – 10.0% | |||||||||||
62,768 | Activision Blizzard Inc. | $ | 895,072 | ||||||||
56,823 | Adobe Systems Incorporated, (2) | 2,588,856 | |||||||||
39,771 | Autodesk, Inc., (2) | 1,349,828 | |||||||||
65,185 | CA Inc. | 1,866,247 | |||||||||
33,659 | Cadence Design Systems, Inc., (2) | 487,382 | |||||||||
542,531 | Microsoft Corporation | 18,733,595 | |||||||||
288,883 | Oracle Corporation | 8,874,486 | |||||||||
Total Software | 34,795,466 | ||||||||||
Specialty Retail – 1.9% | |||||||||||
1,126 | Best Buy Co., Inc. | 30,774 | |||||||||
16,073 | Gap, Inc. | 670,726 | |||||||||
29,287 | Home Depot, Inc. | 2,268,864 | |||||||||
32,217 | Limited Brands Inc. | 1,586,687 | |||||||||
2,484 | Lowe's Companies, Inc. | 101,596 | |||||||||
10,184 | TJX Companies, Inc. | 509,811 | |||||||||
32,475 | Urban Outfitters, Inc., (2) | 1,306,145 | |||||||||
Total Specialty Retail | 6,474,603 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.2% | |||||||||||
14,587 | Coach, Inc. | 832,772 | |||||||||
Thrifts & Mortgage Finance – 0.0% | |||||||||||
1,712 | Tree.com Inc. | 29,344 | |||||||||
Tobacco – 1.1% | |||||||||||
30,144 | Altria Group, Inc. | 1,054,739 | |||||||||
32,805 | Philip Morris International | 2,841,569 | |||||||||
Total Tobacco | 3,896,308 | ||||||||||
Wireless Telecommunication Services – 0.2% | |||||||||||
9,319 | Crown Castle International Corporation, (2) | 674,602 | |||||||||
Total Common Stocks (cost $204,627,654) | 341,838,842 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 5.3% | |||||||||||||||||||
$ | 18,291 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/13, repurchase price $18,291,332, collateralized by $18,360,000 U.S. Treasury Notes, 1.750%, due 10/31/18, value $18,658,350 | 0.010 | % | 7/01/13 | $ | 18,291,317 | ||||||||||||
Total Short-Term Investments (cost $18,291,317) | 18,291,317 | ||||||||||||||||||
Total Investments (cost $222,918,971) – 103.9% | 360,130,159 | ||||||||||||||||||
Other Assets Less Liabilities – (3.9)% (3) | (13,682,155 | ) | |||||||||||||||||
Net Assets – 100% | $ | 346,448,004 |
Nuveen Investments
38
Investments in Derivatives as of June 30, 2013
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value (3) | ||||||||||||||||||
(705 | ) | MINI-NASDAQ-100 Index | $ | (20,092,500 | ) | 7/20/13 | $ | 285.0 | $ | (562,237 | ) | ||||||||||||
(734 | ) | MINI-NASDAQ-100 Index | (21,102,500 | ) | 7/20/13 | 287.5 | (444,070 | ) | |||||||||||||||
(705 | ) | MINI-NASDAQ-100 Index | (20,445,000 | ) | 7/20/13 | 290.0 | (321,833 | ) | |||||||||||||||
(698 | ) | MINI-NASDAQ-100 Index | (20,416,500 | ) | 7/20/13 | 292.5 | (226,850 | ) | |||||||||||||||
(763 | ) | MINI-NASDAQ-100 Index | (22,508,500 | ) | 7/20/13 | 295.0 | (136,959 | ) | |||||||||||||||
(728 | ) | MINI-NASDAQ-100 Index | (20,748,000 | ) | 8/17/13 | 285.0 | (718,900 | ) | |||||||||||||||
(807 | ) | MINI-NASDAQ-100 Index | (23,806,500 | ) | 8/17/13 | 295.0 | (336,922 | ) | |||||||||||||||
(682 | ) | MINI-NASDAQ-100 Index | (20,289,500 | ) | 8/17/13 | 297.5 | (207,669 | ) | |||||||||||||||
(131 | ) | S&P 500® Index | (20,632,500 | ) | 7/20/13 | 1,575.0 | (554,130 | ) | |||||||||||||||
(234 | ) | S&P 500® Index | (37,440,000 | ) | 7/20/13 | 1,600.0 | (595,530 | ) | |||||||||||||||
(256 | ) | S&P 500® Index | (41,600,000 | ) | 7/20/13 | 1,625.0 | (318,720 | ) | |||||||||||||||
(142 | ) | S&P 500® Index | (22,010,000 | ) | 7/20/13 | 1,550.0 | (881,110 | ) | |||||||||||||||
(97 | ) | S&P 500® Index | (15,277,500 | ) | 8/17/13 | 1,575.0 | (524,770 | ) | |||||||||||||||
(200 | ) | S&P 500® Index | (32,000,000 | ) | 8/17/13 | 1,600.0 | (754,000 | ) | |||||||||||||||
(6,882 | ) | Total Call Options Written (premiums received $7,965,180) | $ | (338,369,000 | ) |
|
| $ | (6,583,700 | ) |
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 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 shown 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 listed within Investments in Derivatives as of the end of the reporting period.
(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, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Common Stocks – 98.3% (5) | |||||||||||
Aerospace & Defense – 2.8% | |||||||||||
20,739 | Boeing Company | $ | 2,124,503 | ||||||||
19,938 | Honeywell International Inc. | 1,581,881 | |||||||||
14,434 | Raytheon Company | 954,376 | |||||||||
21,581 | United Technologies Corporation | 2,005,738 | |||||||||
Total Aerospace & Defense | 6,666,498 | ||||||||||
Air Freight & Logistics – 0.5% | |||||||||||
15,007 | United Parcel Service, Inc., Class B | 1,297,805 | |||||||||
Airlines – 0.1% | |||||||||||
13,205 | Latam Airlines Group, Sponsored ADR | 223,032 | |||||||||
Auto Components – 0.2% | |||||||||||
9,310 | Cooper Tire & Rubber | 308,813 | |||||||||
5,900 | Dana Holding Corporation | 113,634 | |||||||||
Total Auto Components | 422,447 | ||||||||||
Automobiles – 0.6% | |||||||||||
92,502 | Ford Motor Company | 1,431,006 | |||||||||
Beverages – 2.4% | |||||||||||
86,588 | Coca-Cola Company | 3,473,045 | |||||||||
28,103 | PepsiCo, Inc. | 2,298,544 | |||||||||
Total Beverages | 5,771,589 | ||||||||||
Biotechnology – 1.5% | |||||||||||
11,864 | Celgene Corporation, (2) | 1,387,020 | |||||||||
40,546 | Gilead Sciences, Inc., (2) | 2,076,361 | |||||||||
10,546 | PDL BioPharma Inc. | 81,415 | |||||||||
Total Biotechnology | 3,544,796 | ||||||||||
Capital Markets – 2.0% | |||||||||||
53,257 | Charles Schwab Corporation | 1,130,646 | |||||||||
24,627 | Federated Investors Inc. | 675,026 | |||||||||
7,757 | Goldman Sachs Group, Inc. | 1,173,246 | |||||||||
46,141 | Morgan Stanley | 1,127,225 | |||||||||
14,786 | Waddell & Reed Financial, Inc., Class A | 643,191 | |||||||||
Total Capital Markets | 4,749,334 | ||||||||||
Chemicals – 2.5% | |||||||||||
22,557 | Dow Chemical Company | 725,659 | |||||||||
17,703 | E.I. Du Pont de Nemours and Company | 929,408 | |||||||||
14,249 | Eastman Chemical Company | 997,572 | |||||||||
10,640 | Monsanto Company | 1,051,232 | |||||||||
27,207 | Olin Corporation | 650,791 | |||||||||
7,340 | PPG Industries, Inc. | 1,074,649 |
Nuveen Investments
40
Shares | Description (1) | Value | |||||||||
Chemicals (continued) | |||||||||||
16,530 | RPM International, Inc. | $ | 527,968 | ||||||||
Total Chemicals | 5,957,279 | ||||||||||
Commercial Banks – 2.7% | |||||||||||
12,843 | Comerica Incorporated | 511,537 | |||||||||
12,783 | Fifth Third Bancorp. | 230,733 | |||||||||
11,582 | First Horizon National Corporation | 129,718 | |||||||||
8,574 | FirstMerit Corporation | 171,737 | |||||||||
49,105 | Huntington BancShares Inc. | 386,947 | |||||||||
33,673 | Regions Financial Corporation | 320,904 | |||||||||
45,230 | U.S. Bancorp | 1,635,065 | |||||||||
78,213 | Wells Fargo & Company | 3,227,851 | |||||||||
Total Commercial Banks | 6,614,492 | ||||||||||
Commercial Services & Supplies – 0.3% | |||||||||||
5,330 | Avery Dennison Corporation | 227,911 | |||||||||
14,872 | Deluxe Corporation | 515,315 | |||||||||
8,400 | Kimball International Inc., Class B | 81,564 | |||||||||
Total Commercial Services & Supplies | 824,790 | ||||||||||
Communications Equipment – 2.4% | |||||||||||
109,537 | Cisco Systems, Inc. | 2,662,844 | |||||||||
14,740 | Motorola Solutions Inc. | 850,940 | |||||||||
35,475 | QUALCOMM, Inc. | 2,166,813 | |||||||||
2,984 | Research In Motion Limited, (2) | 31,242 | |||||||||
Total Communications Equipment | 5,711,839 | ||||||||||
Computers & Peripherals – 3.4% | |||||||||||
15,359 | Apple, Inc. | 6,083,393 | |||||||||
30,455 | Dell Inc. | 406,574 | |||||||||
40,436 | EMC Corporation | 955,098 | |||||||||
25,651 | Hewlett-Packard Company | 636,145 | |||||||||
Total Computers & Peripherals | 8,081,210 | ||||||||||
Consumer Finance – 0.6% | |||||||||||
20,573 | American Express Company | 1,538,037 | |||||||||
Containers & Packaging – 0.3% | |||||||||||
16,760 | Packaging Corp. of America | 820,570 | |||||||||
Distributors – 0.0% | |||||||||||
796 | Genuine Parts Company | 62,144 | |||||||||
Diversified Consumer Services – 0.0% | |||||||||||
5,562 | Apollo Group, Inc., Class A, (2) | 98,559 | |||||||||
Diversified Financial Services – 4.8% | |||||||||||
200,358 | Bank of America Corporation | 2,576,604 | |||||||||
52,605 | Citigroup Inc. | 2,523,462 | |||||||||
12,960 | CME Group, Inc. | 984,701 | |||||||||
4,327 | Intercontinental Exchange, Inc., (2) | 769,168 | |||||||||
79,421 | JPMorgan Chase & Co. | 4,192,635 | |||||||||
9,862 | New York Stock Exchange Euronext | 408,287 | |||||||||
Total Diversified Financial Services | 11,454,857 |
Nuveen Investments
41
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Diversified Telecommunication Services – 3.2% | |||||||||||
3,700 | Alaska Communications Systems Group Inc. | $ | 6,216 | ||||||||
106,776 | AT&T Inc. | 3,779,870 | |||||||||
111,815 | Frontier Communications Corporation | 452,851 | |||||||||
67,351 | Verizon Communications Inc. | 3,390,449 | |||||||||
Total Diversified Telecommunication Services | 7,629,386 | ||||||||||
Electric Utilities – 0.9% | |||||||||||
33,596 | Duke Energy Corporation | 2,267,730 | |||||||||
876 | Great Plains Energy Incorporated | 19,745 | |||||||||
Total Electric Utilities | 2,287,475 | ||||||||||
Electrical Equipment – 0.8% | |||||||||||
3,151 | Eaton PLC | 207,367 | |||||||||
22,224 | Emerson Electric Company | 1,212,097 | |||||||||
6,854 | Rockwell Automation, Inc. | 569,842 | |||||||||
Total Electrical Equipment | 1,989,306 | ||||||||||
Electronic Equipment & Instruments – 0.3% | |||||||||||
48,583 | Corning Incorporated | 691,336 | |||||||||
Energy Equipment & Services – 2.0% | |||||||||||
12,363 | Baker Hughes Incorporated | 570,305 | |||||||||
2,246 | Carbo Ceramics Inc. | 151,448 | |||||||||
29,590 | Halliburton Company | 1,234,495 | |||||||||
9,961 | National-Oilwell Varco Inc. | 686,313 | |||||||||
12,997 | Noble Corporation | 488,427 | |||||||||
20,806 | Schlumberger Limited | 1,490,958 | |||||||||
1,869 | Tidewater Inc. | 106,477 | |||||||||
Total Energy Equipment & Services | 4,728,423 | ||||||||||
Food & Staples Retailing – 2.1% | |||||||||||
28,828 | CVS Caremark Corporation | 1,648,385 | |||||||||
23,426 | SUPERVALU INC., (2) | 145,710 | |||||||||
34,385 | Wal-Mart Stores, Inc. | 2,561,339 | |||||||||
11,974 | Whole Foods Market, Inc. | 616,422 | |||||||||
Total Food & Staples Retailing | 4,971,856 | ||||||||||
Food Products – 1.4% | |||||||||||
13,960 | Archer-Daniels-Midland Company | 473,384 | |||||||||
17,628 | ConAgra Foods, Inc. | 615,746 | |||||||||
15,625 | Kraft Foods Inc., Class A | 872,969 | |||||||||
46,877 | Mondelez International Inc. | 1,337,401 | |||||||||
Total Food Products | 3,299,500 | ||||||||||
Gas Utilities – 0.5% | |||||||||||
13,418 | AGL Resources Inc. | 575,095 | |||||||||
14,636 | ONEOK, Inc. | 604,613 | |||||||||
Total Gas Utilities | 1,179,708 | ||||||||||
Health Care Equipment & Supplies – 1.5% | |||||||||||
45,691 | Abbott Laboratories | 1,593,702 | |||||||||
28,854 | Boston Scientific Corporation, (2) | 267,477 | |||||||||
3,976 | Hologic Inc., (2) | 76,737 | |||||||||
31,998 | Medtronic, Inc. | 1,646,937 | |||||||||
Total Health Care Equipment & Supplies | 3,584,853 |
Nuveen Investments
42
Shares | Description (1) | Value | |||||||||
Health Care Providers & Services – 2.5% | |||||||||||
13,746 | Aetna Inc. | $ | 873,421 | ||||||||
1,637 | Brookdale Senior Living Inc., (2) | 43,282 | |||||||||
26,122 | Express Scripts, (2) | 1,611,466 | |||||||||
5,614 | Humana Inc. | 473,709 | |||||||||
6,162 | Tenet Healthcare Corporation, (2) | 284,068 | |||||||||
27,666 | UnitedHealth Group Incorporated | 1,811,570 | |||||||||
11,165 | Wellpoint Inc. | 913,744 | |||||||||
Total Health Care Providers & Services | 6,011,260 | ||||||||||
Hotels, Restaurants & Leisure – 1.4% | |||||||||||
9,393 | International Game Technology | 156,957 | |||||||||
21,646 | McDonald's Corporation | 2,142,954 | |||||||||
13,188 | MGM Resorts International Inc., (2) | 194,919 | |||||||||
43,350 | The Wendy's Company | 252,731 | |||||||||
4,557 | Tim Hortons Inc. | 246,670 | |||||||||
5,749 | Wyndham Worldwide Corporation | 329,015 | |||||||||
Total Hotels, Restaurants & Leisure | 3,323,246 | ||||||||||
Household Durables – 0.5% | |||||||||||
9,410 | KB Home | 184,718 | |||||||||
7,325 | Lennar Corporation, Class A | 263,993 | |||||||||
16,964 | Newell Rubbermaid Inc. | 445,305 | |||||||||
2,393 | Whirlpool Corporation | 273,663 | |||||||||
Total Household Durables | 1,167,679 | ||||||||||
Household Products – 2.1% | |||||||||||
10,456 | Colgate-Palmolive Company | 599,024 | |||||||||
9,977 | Kimberly-Clark Corporation | 969,166 | |||||||||
46,510 | Procter & Gamble Company | 3,580,805 | |||||||||
Total Household Products | 5,148,995 | ||||||||||
Industrial Conglomerates – 1.7% | |||||||||||
15,041 | 3M Co. | 1,644,733 | |||||||||
108,753 | General Electric Company | 2,521,982 | |||||||||
Total Industrial Conglomerates | 4,166,715 | ||||||||||
Insurance – 3.9% | |||||||||||
18,935 | Arthur J. Gallagher & Co. | 827,270 | |||||||||
27,775 | Berkshire Hathaway Inc., Class B, (2) | 3,108,578 | |||||||||
16,883 | Fidelity National Title Group Inc., Class A | 401,984 | |||||||||
20,130 | Genworth Financial Inc., Class A, (2) | 229,683 | |||||||||
12,560 | Kemper Corporation | 430,180 | |||||||||
26,486 | Lincoln National Corporation | 965,944 | |||||||||
26,240 | Marsh & McLennan Companies, Inc. | 1,047,501 | |||||||||
16,516 | Mercury General Corporation | 726,043 | |||||||||
10,189 | Prudential Financial, Inc. | 744,103 | |||||||||
11,626 | Travelers Companies, Inc. | 929,150 | |||||||||
Total Insurance | 9,410,436 | ||||||||||
Internet & Catalog Retail – 0.9% | |||||||||||
7,722 | Amazon.com, Inc., (2) | 2,144,322 | |||||||||
Internet Software & Services – 2.7% | |||||||||||
5,170 | Akamai Technologies, Inc., (2) | 219,984 | |||||||||
25,659 | eBay Inc., (2) | 1,327,083 | |||||||||
4,340 | Google Inc., Class A, (2) | 3,820,806 | |||||||||
22,961 | United Online, Inc. | 174,044 |
Nuveen Investments
43
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Internet Software & Services (continued) | |||||||||||
6,424 | VeriSign, Inc., (2) | $ | 286,896 | ||||||||
27,685 | Yahoo! Inc., (2) | 695,170 | |||||||||
Total Internet Software & Services | 6,523,983 | ||||||||||
IT Services – 3.7% | |||||||||||
29,053 | Automatic Data Processing, Inc. | 2,000,590 | |||||||||
9,387 | Cognizant Technology Solutions Corporation, Class A, (2) | 587,720 | |||||||||
11,474 | Fidelity National Information Services | 491,546 | |||||||||
20,319 | International Business Machines Corporation (IBM) | 3,883,164 | |||||||||
2,687 | Lender Processing Services Inc. | 86,924 | |||||||||
9,814 | Visa Inc., Class A | 1,793,508 | |||||||||
Total IT Services | 8,843,452 | ||||||||||
Leisure Equipment & Products – 0.4% | |||||||||||
21,208 | Mattel, Inc. | 960,934 | |||||||||
634 | Polaris Industries Inc. | 60,230 | |||||||||
Total Leisure Equipment & Products | 1,021,164 | ||||||||||
Life Sciences Tools & Services – 0.2% | |||||||||||
1,370 | Covance, Inc., (2) | 104,312 | |||||||||
4,213 | Life Technologies Corporation, (2) | 311,804 | |||||||||
Total Life Sciences Tools & Services | 416,116 | ||||||||||
Machinery – 2.5% | |||||||||||
3,706 | Briggs & Stratton Corporation | 73,379 | |||||||||
12,391 | Caterpillar Inc. | 1,022,134 | |||||||||
3,774 | Cummins Inc. | 409,328 | |||||||||
11,246 | Deere & Company | 913,738 | |||||||||
13,943 | Illinois Tool Works, Inc. | 964,437 | |||||||||
5,351 | Pentair Limited | 308,699 | |||||||||
11,866 | Snap-on Incorporated | 1,060,583 | |||||||||
17,297 | Stanley Black & Decker Inc. | 1,337,058 | |||||||||
Total Machinery | 6,089,356 | ||||||||||
Media – 2.6% | |||||||||||
12,544 | CBS Corporation, Class B | 613,025 | |||||||||
62,276 | Comcast Corporation, Class A | 2,608,119 | |||||||||
14,912 | DirecTV, (2) | 918,877 | |||||||||
8,126 | Gannett Company Inc. | 198,762 | |||||||||
5,070 | Lamar Advertising Company, (2) | 220,038 | |||||||||
28,121 | New York Times, Class A, (2) | 311,018 | |||||||||
51,096 | Regal Entertainment Group, Class A | 914,618 | |||||||||
45,144 | Sirius XM Radio Inc. | 151,232 | |||||||||
24,892 | World Wrestling Entertainment Inc. | 256,637 | |||||||||
Total Media | 6,192,326 | ||||||||||
Metals & Mining – 0.4% | |||||||||||
4,770 | Companhia Siderurgica Nacional S.A., Sponsored ADR | 13,213 | |||||||||
23,593 | Freeport-McMoRan Copper & Gold, Inc. | 651,403 | |||||||||
10,237 | Southern Copper Corporation | 282,746 | |||||||||
3,047 | United States Steel Corporation | 53,414 | |||||||||
Total Metals & Mining | 1,000,776 | ||||||||||
Multiline Retail – 0.8% | |||||||||||
8,878 | Nordstrom, Inc. | 532,147 | |||||||||
18,749 | Target Corporation | 1,291,056 | |||||||||
Total Multiline Retail | 1,823,203 |
Nuveen Investments
44
Shares | Description (1) | Value | |||||||||
Multi-Utilities – 1.4% | |||||||||||
14,000 | Ameren Corporation | $ | 482,160 | �� | |||||||
52,946 | CenterPoint Energy, Inc. | 1,243,702 | |||||||||
7,260 | Consolidated Edison, Inc. | 423,331 | |||||||||
22,250 | Dominion Resources, Inc. | 1,264,245 | |||||||||
Total Multi-Utilities | 3,413,438 | ||||||||||
Oil, Gas & Consumable Fuels – 8.8% | |||||||||||
32,095 | Chesapeake Energy Corporation | 654,096 | |||||||||
34,906 | Chevron Corporation | 4,130,776 | |||||||||
20,462 | ConocoPhillips | 1,237,951 | |||||||||
11,317 | CONSOL Energy Inc. | 306,691 | |||||||||
6,936 | EOG Resources, Inc. | 913,332 | |||||||||
80,980 | Exxon Mobil Corporation | 7,316,543 | |||||||||
7,395 | Hess Corporation | 491,694 | |||||||||
20,768 | Marathon Oil Corporation | 718,157 | |||||||||
10,284 | Marathon Petroleum Corporation | 730,781 | |||||||||
19,605 | Occidental Petroleum Corporation | 1,749,354 | |||||||||
21,448 | Peabody Energy Corporation | 313,999 | |||||||||
10,973 | Phillips 66 | 646,419 | |||||||||
24,031 | Ship Financial International Limited | 356,620 | |||||||||
17,375 | Southwestern Energy Company, (2) | 634,709 | |||||||||
23,750 | StatoilHydro ASA, Sponsored ADR | 491,388 | |||||||||
16,856 | Valero Energy Corporation | 586,083 | |||||||||
Total Oil, Gas & Consumable Fuels | 21,278,593 | ||||||||||
Personal Products – 0.2% | |||||||||||
21,653 | Avon Products, Inc. | 455,363 | |||||||||
Pharmaceuticals – 6.3% | |||||||||||
45,691 | AbbVie Inc. | 1,888,866 | |||||||||
476 | AstraZeneca PLC, Sponsored ADR | 22,515 | |||||||||
42,537 | Bristol-Myers Squibb Company | 1,900,979 | |||||||||
12,124 | Eli Lilly and Company | 595,531 | |||||||||
56,610 | Johnson & Johnson | 4,860,535 | |||||||||
56,106 | Merck & Company Inc. | 2,606,124 | |||||||||
108,416 | Pfizer Inc. | 3,036,732 | |||||||||
5,422 | Sanofi SA, Sponsored ADR | 279,287 | |||||||||
Total Pharmaceuticals | 15,190,569 | ||||||||||
Real Estate Investment Trust – 2.2% | |||||||||||
46,182 | Annaly Capital Management Inc. | 580,508 | |||||||||
35,857 | Brandywine Realty Trust | 484,787 | |||||||||
14,334 | CubeSmart | 229,057 | |||||||||
16,442 | Hospitality Properties Trust | 432,096 | |||||||||
54,457 | Lexington Corporate Properties Trust | 636,058 | |||||||||
32,604 | Senior Housing Properties Trust | 845,422 | |||||||||
23,740 | Ventas Inc. | 1,648,980 | |||||||||
19,112 | Weyerhaeuser Company | 544,501 | |||||||||
Total Real Estate Investment Trust | 5,401,409 | ||||||||||
Road & Rail – 0.8% | |||||||||||
12,155 | Union Pacific Corporation | 1,875,273 | |||||||||
Semiconductors & Equipment – 2.4% | |||||||||||
15,548 | Analog Devices, Inc. | 700,593 | |||||||||
35,188 | Applied Materials, Inc. | 524,653 | |||||||||
959 | First Solar Inc., (2) | 42,896 | |||||||||
107,122 | Intel Corporation | 2,594,495 |
Nuveen Investments
45
JPG
Nuveen Equity Premium and Growth Fund (continued)
Portfolio of Investments June 30, 2013 (Unaudited)
Shares | Description (1) | Value | |||||||||
Semiconductors & Equipment (continued) | |||||||||||
17,124 | Microchip Technology Incorporated | $ | 637,869 | ||||||||
19,215 | NVIDIA Corporation | 269,586 | |||||||||
27,352 | Texas Instruments Incorporated | 953,764 | |||||||||
Total Semiconductors & Equipment | 5,723,856 | ||||||||||
Software – 3.9% | |||||||||||
16,588 | Adobe Systems Incorporated, (2) | 755,749 | |||||||||
8,286 | Autodesk, Inc., (2) | 281,227 | |||||||||
151,552 | Microsoft Corporation | 5,233,091 | |||||||||
75,428 | Oracle Corporation | 2,317,148 | |||||||||
18,624 | Salesforce.com, Inc., (2) | 711,064 | |||||||||
Total Software | 9,298,279 | ||||||||||
Specialty Retail – 2.7% | |||||||||||
6,506 | Abercrombie & Fitch Co., Class A | 294,397 | |||||||||
19,409 | American Eagle Outfitters, Inc. | 354,408 | |||||||||
14,239 | Best Buy Co., Inc. | 389,152 | |||||||||
1,872 | CST Brands Inc., (2) | 57,676 | |||||||||
11,367 | Gap, Inc. | 474,345 | |||||||||
15,188 | Home Depot, Inc. | 1,176,614 | |||||||||
17,078 | Limited Brands Inc. | 841,092 | |||||||||
33,335 | Lowe's Companies, Inc. | 1,363,402 | |||||||||
7,525 | Tiffany & Co. | 548,121 | |||||||||
19,611 | TJX Companies, Inc. | 981,727 | |||||||||
Total Specialty Retail | 6,480,934 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.6% | |||||||||||
7,619 | VF Corporation | 1,470,924 | |||||||||
Thrifts & Mortgage Finance – 0.3% | |||||||||||
52,183 | New York Community Bancorp Inc. | 730,562 | |||||||||
Tobacco – 2.1% | |||||||||||
50,557 | Altria Group, Inc. | 1,768,989 | |||||||||
28,556 | Philip Morris International | 2,473,521 | |||||||||
17,888 | Reynolds American Inc. | 865,243 | |||||||||
Total Tobacco | 5,107,753 | ||||||||||
Trading Companies & Distributors – 0.3% | |||||||||||
3,200 | W.W. Grainger, Inc. | 806,976 | |||||||||
Wireless Telecommunication Services – 0.2% | |||||||||||
54,217 | Sprint Nextel Corporation, (2) | 380,603 | |||||||||
1,065 | Vodafone Group PLC, Sponsored ADR | 30,608 | |||||||||
Total Wireless Telecommunication Services | 411,211 | ||||||||||
Total Common Stocks (cost $166,448,461) | 236,560,296 |
Nuveen Investments
46
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | |||||||||||||||
Short-Term Investments – 5.2% | |||||||||||||||||||
$ | 12,513 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/13, repurchase price $12,512,576, collateralized by $12,560,000 U.S. Treasury Notes, 1.750%, due 10/31/18, value $12,764,100 | 0.010 | % | 7/01/13 | $ | 12,512,566 | ||||||||||||
Total Short-Term Investments (cost $12,512,566) | 12,512,566 | ||||||||||||||||||
Total Investments (cost $178,961,027) – 103.5% | 249,072,862 | ||||||||||||||||||
Other Assets Less Liabilities – (3.5)% (3) | (8,382,812 | ) | |||||||||||||||||
Net Assets – 100% | $ | 240,690,050 |
Investments in Derivatives as of June 30, 2013
Call Options Written outstanding:
Number of Contracts | Type | Notional Amount (4) | Expiration Date | Strike Price | Value (3) | ||||||||||||||||||
(158 | ) | S&P 500® Index | $ | (24,490,000 | ) | 7/20/13 | $ | 1,550 | $ | (980,390 | ) | ||||||||||||
(140 | ) | S&P 500® Index | (22,050,000 | ) | 7/20/13 | 1575 | (592,200 | ) | |||||||||||||||
(253 | ) | S&P 500® Index | (40,480,000 | ) | 7/20/13 | 1600 | (643,885 | ) | |||||||||||||||
(287 | ) | S&P 500® Index | (46,637,500 | ) | 7/20/13 | 1625 | (357,315 | ) | |||||||||||||||
(105 | ) | S&P 500® Index | (16,537,500 | ) | 8/17/13 | 1575 | (568,050 | ) | |||||||||||||||
(226 | ) | S&P 500® Index | (36,160,000 | ) | 8/17/13 | 1600 | (852,020 | ) | |||||||||||||||
(1,169 | ) | Total Call Options Written (premiums received $4,595,428) | $ | (186,355,000 | ) |
|
| $ | (3,993,860 | ) |
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 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 shown 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 listed within Investments in Derivatives as of the end of the reporting period.
(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, 2013 (Unaudited)
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at value (cost $375,335,410, $611,233,682, $222,918,971 and $178,961,027, respectively) | $ | 534,107,296 | $ | 914,543,440 | $ | 360,130,159 | $ | 249,072,862 | |||||||||||
Cash | 3,176 | — | — | — | |||||||||||||||
Receivables: | |||||||||||||||||||
Dividends and interest | 761,107 | 1,102,170 | 258,471 | 317,172 | |||||||||||||||
Investments sold | 106 | — | 1,530 | — | |||||||||||||||
Reclaims | 560 | — | 145 | — | |||||||||||||||
Other assets | 59,317 | 94,714 | 37,511 | 24,793 | |||||||||||||||
Total assets | 534,931,562 | 915,740,324 | 360,427,816 | 249,414,827 | |||||||||||||||
Liabilities | |||||||||||||||||||
Call options written, at value (premiums received $12,322,155, $20,452,710, $7,965,180 and $4,595,428, respectively) | 10,747,655 | 17,379,832 | 6,583,700 | 3,993,860 | |||||||||||||||
Dividends payable | 9,970,816 | 17,387,193 | 6,995,013 | 4,438,711 | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Management fees | 369,714 | 627,138 | 250,294 | 169,511 | |||||||||||||||
Trustees fees | 55,730 | 88,465 | 34,935 | 21,672 | |||||||||||||||
Other | 162,186 | 282,353 | 115,870 | 101,023 | |||||||||||||||
Total liabilities | 21,306,101 | 35,764,981 | 13,979,812 | 8,724,777 | |||||||||||||||
Net assets | $ | 513,625,461 | $ | 879,975,343 | $ | 346,448,004 | $ | 240,690,050 | |||||||||||
Shares outstanding | 38,464,973 | 66,487,744 | 25,679,417 | 16,152,579 | |||||||||||||||
Net asset value per share outstanding | $ | 13.35 | $ | 13.24 | $ | 13.49 | $ | 14.90 | |||||||||||
Net assets consist of: | |||||||||||||||||||
Shares, $.01 par value per share | $ | 384,650 | $ | 664,877 | $ | 256,794 | $ | 161,526 | |||||||||||
Paid-in surplus | 451,585,563 | 711,829,282 | 257,378,943 | 224,856,899 | |||||||||||||||
Undistributed (Over-distribution of) net investment income | (17,084,095 | ) | (31,903,911 | ) | (12,902,597 | ) | (7,301,159 | ) | |||||||||||
Accumulated net realized gain (loss) | (81,606,985 | ) | (106,997,541 | ) | (36,877,804 | ) | (47,740,619 | ) | |||||||||||
Net unrealized appreciation (depreciation) | 160,346,328 | 306,382,636 | 138,592,668 | 70,713,403 | |||||||||||||||
Net assets | $ | 513,625,461 | $ | 879,975,343 | $ | 346,448,004 | $ | 240,690,050 | |||||||||||
Authorized shares | Unlimited | Unlimited | Unlimited | Unlimited |
See accompanying notes to financial statements.
Nuveen Investments
48
Statement of
OPERATIONS
Six Months Ended June 30, 2013 (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 $2,708, $18,075, $5,211 and $7,251, respectively) | $ | 6,234,603 | $ | 9,352,670 | $ | 3,378,385 | $ | 2,898,382 | |||||||||||
Interest | 755 | 1,448 | 494 | 309 | |||||||||||||||
Total investment income | 6,235,358 | 9,354,118 | 3,378,879 | 2,898,691 | |||||||||||||||
Expenses | |||||||||||||||||||
Management fees | 2,235,437 | 3,785,539 | 1,508,803 | 1,016,332 | |||||||||||||||
Shareholder servicing agent fees and expenses | 455 | 779 | 248 | 123 | |||||||||||||||
Custodian fees and expenses | 42,440 | 68,775 | 34,484 | 24,052 | |||||||||||||||
Trustees fees and expenses | 14,015 | 23,894 | 9,510 | 6,562 | |||||||||||||||
Professional fees | 20,350 | 25,581 | 17,939 | 16,384 | |||||||||||||||
Shareholder reporting expenses | 60,343 | 105,645 | 33,764 | 24,725 | |||||||||||||||
Stock exchange listing fees | 6,092 | 10,530 | 4,258 | 4,258 | |||||||||||||||
Investor relations expenses | 56,511 | 83,996 | 29,275 | 32,750 | |||||||||||||||
Other expenses | 35,795 | 105,426 | 57,286 | 29,220 | |||||||||||||||
Total expenses before expense reimbursement | 2,471,438 | 4,210,165 | 1,695,567 | 1,154,406 | |||||||||||||||
Expense reimbursement | — | (52,297 | ) | — | — | ||||||||||||||
Net expenses | 2,471,438 | 4,157,868 | 1,695,567 | 1,154,406 | |||||||||||||||
Net investment income (loss) | 3,763,920 | 5,196,250 | 1,683,312 | 1,744,285 | |||||||||||||||
Realized and Unrealized Gain (Loss) | |||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 25,128,112 | 51,764,691 | 23,710,551 | 9,904,872 | |||||||||||||||
Call options written | (38,150,553 | ) | (59,185,337 | ) | (19,958,939 | ) | (14,428,739 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 35,556,673 | 47,168,014 | 11,390,215 | 19,242,403 | |||||||||||||||
Call options written | 3,193,269 | 5,737,162 | 2,017,548 | 1,267,500 | |||||||||||||||
Net realized and unrealized gain (loss) | 25,727,501 | 45,484,530 | 17,159,375 | 15,986,036 | |||||||||||||||
Net increase (decrease) in net assets from operations | $ | 29,491,421 | $ | 50,680,780 | $ | 18,842,687 | $ | 17,730,321 |
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 6/30/13 | Year Ended 12/31/12 | Six Months Ended 6/30/13 | Year Ended 12/31/12 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income (loss) | $ | 3,763,920 | $ | 9,410,446 | $ | 5,196,250 | $ | 12,936,622 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 25,128,112 | 14,716,979 | 51,764,691 | 36,351,932 | |||||||||||||||
Call options written | (38,150,553 | ) | (22,510,016 | ) | (59,185,337 | ) | (45,753,145 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 35,556,673 | 50,950,393 | 47,168,014 | 83,633,596 | |||||||||||||||
Call options written | 3,193,269 | (1,764,899 | ) | 5,737,162 | (5,845,583 | ) | |||||||||||||
Net increase (decrease) in net assets from operations | 29,491,421 | 50,802,903 | 50,680,780 | 81,323,422 | |||||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From and in excess of net investment income | (20,848,015 | ) | — | (37,100,161 | ) | — | |||||||||||||
From net investment income | — | (9,513,512 | ) | — | (13,421,449 | ) | |||||||||||||
Return of capital | — | (32,189,236 | ) | — | (60,782,807 | ) | |||||||||||||
Decrease in net assets from distributions to shareholders | (20,848,015 | ) | (41,702,748 | ) | (37,100,161 | ) | (74,204,256 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Cost of shares repurchased or retired | — | (203,434 | ) | — | (53,251 | ) | |||||||||||||
Net increase (decrease) in net assets from capital share transactions | — | (203,434 | ) | — | (53,251 | ) | |||||||||||||
Net increase (decrease) in net assets | 8,643,406 | 8,896,721 | 13,580,619 | 7,065,915 | |||||||||||||||
Net assets at the beginning of period | 504,982,055 | 496,085,334 | 866,394,724 | 859,328,809 | |||||||||||||||
Net assets at the end of period | $ | 513,625,461 | $ | 504,982,055 | $ | 879,975,343 | $ | 866,394,724 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (17,084,095 | ) | $ | — | $ | (31,903,911 | ) | $ | — |
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 6/30/13 | Year Ended 12/31/12 | Six Months Ended 6/30/13 | Year Ended 12/31/12 | ||||||||||||||||
Operations | |||||||||||||||||||
Net investment income (loss) | $ | 1,683,312 | $ | 3,614,555 | $ | 1,744,285 | $ | 4,074,097 | |||||||||||
Net realized gain (loss) from: | |||||||||||||||||||
Investments and foreign currency | 23,710,551 | 24,558,199 | 9,904,872 | 5,360,151 | |||||||||||||||
Call options written | (19,958,939 | ) | (21,432,485 | ) | (14,428,739 | ) | (7,866,299 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments and foreign currency | 11,390,215 | 28,048,972 | 19,242,403 | 23,903,760 | |||||||||||||||
Call options written | 2,017,548 | (3,025,148 | ) | 1,267,500 | (855,286 | ) | |||||||||||||
Net increase (decrease) in net assets from operations | 18,842,687 | 31,764,093 | 17,730,321 | 24,616,423 | |||||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From and in excess of net investment income | (14,585,909 | ) | — | (9,045,444 | ) | — | |||||||||||||
From net investment income | — | (5,357,420 | ) | — | (4,142,189 | ) | |||||||||||||
Return of capital | — | (23,850,406 | ) | — | (13,959,339 | ) | |||||||||||||
Decrease in net assets from distributions to shareholders | (14,585,909 | ) | (29,207,826 | ) | (9,045,444 | ) | (18,101,528 | ) | |||||||||||
Capital Share Transactions | |||||||||||||||||||
Cost of shares repurchased or retired | — | (893,691 | ) | — | (174,186 | ) | |||||||||||||
Net increase (decrease) in net assets from capital share transactions | — | (893,691 | ) | — | (174,186 | ) | |||||||||||||
Net increase (decrease) in net assets | 4,256,778 | 1,662,576 | 8,684,877 | 6,340,709 | |||||||||||||||
Net assets at the beginning of period | 342,191,226 | 340,528,650 | 232,005,173 | 225,664,464 | |||||||||||||||
Net assets at the end of period | $ | 346,448,004 | $ | 342,191,226 | $ | 240,690,050 | $ | 232,005,173 | |||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (12,902,597 | ) | $ | — | $ | (7,301,159 | ) | $ | — |
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 | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Discount From Shares Repurchased and Retired | Ending Net Asset Value | Ending Market Value | |||||||||||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | (d) | $ | 13.13 | $ | .10 | $ | .66 | $ | .76 | $ | (.54 | )*** | $ | — | $ | — | $ | (.54 | ) | $ | — | $ | 13.35 | $ | 12.57 | ||||||||||||||||||||||
2012 | 12.89 | .24 | 1.08 | 1.32 | (.25 | ) | — | (.83 | ) | (1.08 | ) | — | * | 13.13 | 11.83 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | (d) | 13.03 | .08 | .69 | .77 | (.56 | )*** | — | — | (.56 | ) | — | 13.24 | 12.35 | |||||||||||||||||||||||||||||||||
2012 | 12.92 | .19 | 1.04 | 1.23 | (.20 | ) | — | (.92 | ) | (1.12 | ) | — | * | 13.03 | 12.07 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | (d) | 13.33 | .07 | .66 | .73 | (.57 | )*** | — | — | (.57 | ) | — | 13.49 | 12.34 | |||||||||||||||||||||||||||||||||
2012 | 13.22 | .14 | 1.11 | 1.25 | (.21 | ) | — | (.93 | ) | (1.14 | ) | — | * | 13.33 | 11.90 | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | (d) | 14.36 | .11 | .99 | 1.10 | (.56 | )*** | — | — | (.56 | ) | — | 14.90 | 13.80 | |||||||||||||||||||||||||||||||||
2012 | 13.96 | .25 | 1.27 | 1.52 | (.26 | ) | — | (.86 | ) | (1.12 | ) | — | * | 14.36 | 12.93 | ||||||||||||||||||||||||||||||||
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 |
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Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||
Total Returns | Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(c) | |||||||||||||||||||||||||||||||||
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(e) | ||||||||||||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2013 | (d) | 10.84 | % | 5.82 | % | $ | 513,625 | .96 | %** | 1.46 | %** | N/A | N/A | — | %**** | ||||||||||||||||||||
2012 | 15.58 | 10.43 | 504,982 | .96 | 1.78 | .91 | % | 1.84 | % | 3 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2013 | (d) | 6.95 | 5.92 | 879,975 | .95 | ** | 1.16 | ** | .94 | ** | 1.17 | ** | 1 | ||||||||||||||||||||||
2012 | 15.68 | 9.62 | 866,395 | .96 | 1.39 | .88 | 1.47 | 6 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2013 | (d) | 8.49 | 5.49 | 346,448 | .97 | ** | .97 | ** | N/A | N/A | 3 | ||||||||||||||||||||||||
2012 | 13.89 | 9.54 | 342,191 | .99 | 1.04 | N/A | N/A | 6 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | |||||||||||||||||||||||||||||||||||
2013 | (d) | 11.12 | 7.69 | 240,690 | .96 | ** | 1.45 | ** | N/A | N/A | — | ||||||||||||||||||||||||
2012 | 16.58 | 11.03 | 232,005 | .96 | 1.74 | N/A | N/A | 1 | |||||||||||||||||||||||||||
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 |
(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 October 31, 2012, January 31, 2013 and May 31, 2011, the Adviser is no longer reimbursing Equity Premium Income (JPZ), Equity Premium Opportunity (JSN) and Equity Premium Advantage (JLA), respectively, for any fees or expenses.
(d) For the six months ended June 30, 2013.
(e) Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Footnote 5—Investment Transactions) divided by the average long-term market value during the period.
N/A Fund no longer has a contractual reimbursement agreement with the Adviser.
* Rounds to less than $.01 per share.
** Annualized.
*** Represents distributions paid "From and in excess of net investment income" for the six months ended June 30, 2013.
**** 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 New York Stock Exchange ("NYSE") symbols are as follows (each a "Fund" and collectively, the "Funds"):
• Nuveen Equity Premium Income Fund (JPZ) ("Equity Premium Income (JPZ)")
• Nuveen Equity Premium Opportunity Fund (JSN) ("Equity Premium Opportunity (JSN)")
• Nuveen Equity Premium Advantage Fund (JLA) ("Equity Premium Advantage (JLA)")
• Nuveen Equity Premium and Growth Fund (JPG) ("Equity Premium and Growth (JPG)")
The Funds are registered under the Investment Company Act of 1940, as amended, as diversified closed-end registered investment companies. Equity Premium Income (JPZ), Equity Premium Opportunity (JSN), Equity Premium Advantage (JLA) and Equity Premium and Growth (JPG) were organized as Massachusetts business trusts on July 23, 2004, November 11, 2004, February 22, 2005 and November 11, 2004, respectively.
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). The Adviser is responsible for each Fund's overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Gateway Investment Advisers, LLC ("Gateway"), under which Gateway manages the Funds' investment portfolios.
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 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® Index 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® Index 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 accounting principles generally accepted in the United States ("U.S. GAAP").
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
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.
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54
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as "Legal fee refund" on the Statement of Operations.
Dividends and Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
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 actual character of distributions made by the Funds during the fiscal year ended December 31, 2012 are reflected in the accompanying financial statements.
The distributions made by each Fund during the six months ended June 30, 2013, 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, 2013, 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 as of June 30, 2013, reflect an over-distribution of net investment income.
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.
Netting Agreements
In the ordinary course of business, the Funds have entered into transactions subject to enforceable netting agreements or other similar arrangements ("netting agreements"). Generally, the right to offset in netting agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of June 30, 2013, the Funds are not invested in any portfolio securities or derivative instruments, with gross exposures recognized on the Statement of Assets and Liabilities, that could be netted subject to the netting agreements.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market ("NASDAQ") are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the 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
Nuveen Investments
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 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 NYSE. These securities may represent a transfer from a Level 1 to a Level 2 security.
Index options are valued at the 4:00 p.m. Eastern Time (ET) close price of the NYSE. The values of exchange-traded options are based on the mean of the closing bid and ask prices. Index and exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter market are valued using an evaluated mean price and are generally classified as Level 2.
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.
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 | $ | 506,930,254 | $ | — | $ | — | $ | 506,930,254 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 27,177,042 | — | 27,177,042 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (10,747,655 | ) | — | — | (10,747,655 | ) | |||||||||||||
Total | $ | 496,182,599 | $ | 27,177,042 | $ | — | $ | 523,359,641 |
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56
Equity Premium Opportunity (JSN) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 861,463,440 | $ | — | $ | — | $ | 861,463,440 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 53,080,000 | — | 53,080,000 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (17,379,832 | ) | — | — | (17,379,832 | ) | |||||||||||||
Total | $ | 844,083,608 | $ | 53,080,000 | $ | — | $ | 897,163,608 | |||||||||||
Equity Premium Advantage (JLA) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 341,838,842 | $ | — | $ | — | $ | 341,838,842 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 18,291,317 | — | 18,291,317 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (6,583,700 | ) | — | — | (6,583,700 | ) | |||||||||||||
Total | $ | 335,255,142 | $ | 18,291,317 | $ | — | $ | 353,546,459 | |||||||||||
Equity Premium and Growth (JPG) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Long-Term Investments*: | |||||||||||||||||||
Common Stocks | $ | 236,560,296 | $ | — | $ | — | $ | 236,560,296 | |||||||||||
Short-Term Investments: | |||||||||||||||||||
Repurchase Agreements | — | 12,512,566 | — | 12,512,566 | |||||||||||||||
Derivatives: | |||||||||||||||||||
Call Options Written | (3,993,860 | ) | — | — | (3,993,860 | ) | |||||||||||||
Total | $ | 232,566,436 | $ | 12,512,566 | $ | — | $ | 245,079,002 |
* Refer to the Fund's Portfolio of Investments for industry classifications.
The Nuveen funds' Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds' pricing policies and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser's dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i.) If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities.
(ii.) If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis.
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument's current value.
Nuveen Investments
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
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 Funds' investments denominated in that currency will lose value because their 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, 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 forward foreign currency exchange contracts, futures, options purchased, options written and swaps contracts are recognized as a component of "Change in net unrealized appreciation (depreciation) of foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively" on the Statement of Operations, when applicable.
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.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments, such as futures, options and swap contracts. Each Fund will limit its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from regulation by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. 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.
Options Transactions
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.
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During the six months ended June 30, 2013, each Fund wrote call options on a stock index, or a blend of stock indexes, while investing in a portfolio of equities, to enhance returns while foregoing some upside potential of its equity portfolio. Equity Premium Income (JPZ) and Equity Premium and Growth (JPG) wrote call options on the S&P 500® Index. Equity Premium Opportunity (JSN) and Equity Premium Advantage (JLA) wrote call options on a blend of the S&P 500® and NASDAQ 100 Indexes.
The average notional amount of outstanding call options written during the six months ended June 30, 2013, 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 outstanding call options written* | $ | (497,240,333 | ) | $ | (852,402,333 | ) | $ | (337,808,250 | ) | $ | (185,909,667 | ) |
* The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.
The following table presents the fair value of all options held by the Funds as of June 30, 2013, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | |||||||||||||||||||||||
Underlying | Derivative | Asset Derivatives | (Liability) Derivatives | ||||||||||||||||||||
Risk Exposure | Instrument | Location | Value | Location | Value | ||||||||||||||||||
Equity Premium Income (JPZ) | |||||||||||||||||||||||
Equity price | Options | — | $ | — | Call options written, at value | $ | (10,747,655 | ) | |||||||||||||||
Equity Premium Opportunity (JSN) | |||||||||||||||||||||||
Equity price | Options | — | $ | — | Call options written, at value | $ | (17,379,832 | ) | |||||||||||||||
Equity Premium Advantage (JLA) | |||||||||||||||||||||||
Equity price | Options | — | $ | — | Call options written, at value | $ | (6,583,700 | ) | |||||||||||||||
Equity Premium and Growth (JPG) | |||||||||||||||||||||||
Equity price | Options | — | $ | — | Call options written, at value | $ | (3,993,860 | ) |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2013, on options, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) | |||||||||||||||
Equity Premium Income (JPZ) | Equity price | Options | $ | (38,150,553 | ) | $ | 3,193,269 | ||||||||||||
Equity Premium Opportunity (JSN) | Equity price | Options | (59,185,337 | ) | 5,737,162 | ||||||||||||||
Equity Premium Advantage (JLA) | Equity price | Options | (19,958,939 | ) | 2,017,548 | ||||||||||||||
Equity Premium and Growth (JPG) | Equity price | Options | (14,428,739 | ) | 1,267,500 |
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. Credit risk is generally higher when a non-exchange-traded financial instrument is involved because the counterparty for exchange-traded financial instruments is the exchange's clearinghouse.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. Fund Shares
Transactions in shares were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | ||||||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | Six Months Ended 6/30/13 | Year Ended 12/31/12 | ||||||||||||||||
Shares repurchased and retired | — | (17,662 | ) | — | (4,700 | ) | |||||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased and retired | $ | — | $ | 11.50 | $ | — | $ | 11.31 | |||||||||||
Discount per share repurchased and retired | — | % | 19.37 | % | — | % | 12.12 | % | |||||||||||
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | Six Months Ended 6/30/13 | Year Ended 12/31/12 | ||||||||||||||||
Shares repurchased and retired | — | (75,394 | ) | — | (13,800 | ) | |||||||||||||
Weighted average: | |||||||||||||||||||
Price per share repurchased and retired | $ | — | $ | 11.83 | $ | — | $ | 12.60 | |||||||||||
Discount per share repurchased and retired | — | % | 12.36 | % | — | % | 11.72 | % |
5. Investment Transactions
Purchases and sales (excluding short-term investments and derivative transactions) during the six months ended June 30, 2013, were as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Purchases | $ | 1,302,494 | $ | 7,076,281 | $ | 11,665,763 | $ | — | |||||||||||
Sales | 54,809,295 | 109,689,401 | 45,486,120 | 24,627,413 |
Transactions in call options written during the six months ended June 30, 2013, 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 | 3,475 | $ | 12,043,556 | 12,388 | $ | 21,157,896 | |||||||||||||
Options written | 15,169 | 47,425,924 | 53,162 | 82,516,183 | |||||||||||||||
Options terminated in closing purchase transactions | (15,514 | ) | (47,147,325 | ) | (54,200 | ) | (83,221,369 | ) | |||||||||||
Options outstanding, end of period | 3,130 | $ | 12,322,155 | 11,350 | $ | 20,452,710 | |||||||||||||
Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||||
Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||||||||
Options outstanding, beginning of period | 7,522 | $ | 8,436,242 | 1,303 | $ | 4,537,048 | |||||||||||||
Options written | 31,615 | 32,917,532 | 5,670 | 17,707,957 | |||||||||||||||
Options terminated in closing purchase transactions | (32,255 | ) | (33,388,594 | ) | (5,804 | ) | (17,649,577 | ) | |||||||||||
Options outstanding, end of period | 6,882 | $ | 7,965,180 | 1,169 | $ | 4,595,428 |
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6. Income Tax Information
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. 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.
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.
As of June 30, 2013, 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 | $ | 375,747,655 | $ | 611,713,405 | $ | 222,919,736 | $ | 178,982,358 | |||||||||||
Gross unrealized: | |||||||||||||||||||
Appreciation | $ | 195,110,412 | $ | 335,562,182 | $ | 138,973,107 | $ | 84,563,184 | |||||||||||
Depreciation | (36,750,771 | ) | (32,732,147 | ) | (1,762,684 | ) | (14,472,680 | ) | |||||||||||
Net unrealized appreciation (depreciation) of investments | $ | 158,359,641 | $ | 302,830,035 | $ | 137,210,423 | $ | 70,090,504 |
Permanent differences, primarily due to Real Estate Investment Trust (REIT) adjustments, reclassification of litigation proceeds, return of capital distributions and tax basis earnings and profit adjustments resulted in reclassifications among the Funds' components of net assets as of December 31, 2012, 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 | $ | (32,237,929 | ) | $ | (60,798,194 | ) | $ | (25,537,800 | ) | $ | (13,960,625 | ) | |||||||
Undistributed (Over-distribution of) net investment income | 32,292,302 | 61,267,634 | 25,593,271 | 14,027,431 | |||||||||||||||
Accumulated net realized gain (loss) | (54,373 | ) | (469,440 | ) | (55,471 | ) | (66,806 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2012, 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 | — | — | — | — |
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax character of distributions paid during the Funds' last tax year ended December 31, 2012, 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* | $ | 9,513,512 | $ | 13,421,449 | $ | 5,357,420 | $ | 4,142,189 | |||||||||||
Distributions from net long-term capital gains | — | — | — | — | |||||||||||||||
Return of capital | 32,189,236 | 60,782,807 | 23,850,406 | 13,959,339 |
* Net ordinary income consists of net taxable income derived from dividends, interest and current year earnings and profits attributed to realized gains.
As of December 31, 2012, the Funds' last tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Expiration: | |||||||||||||||||||
December 31, 2017 | $ | 55,219,862 | $ | 47,988,639 | $ | 25,262,705 | $ | 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 | $ | 39,615,663 | $ | 38,159,223 |
During the Funds' last tax year ended December 31, 2012, the following Fund utilized its capital loss carryforwards as follows:
Equity Premium Advantage (JLA) | |||||||
Utilized capital loss carryforwards | $ | 1,694,153 |
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by a Fund after December 31, 2010, will not be subject to expiration. During the Funds' last tax year ended December 31, 2012, the following Funds generated post-enactment capital losses as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium and Growth (JPG) | |||||||||||||
Post-enactment losses: | |||||||||||||||
Short-term | $ | 7,288,963 | $ | 10,105,025 | $ | 2,770,620 | |||||||||
Long-term | 649,615 | — | 1,940,680 |
The Funds have elected to defer losses incurred from November 1, 2012 through December 31, 2012, the Funds' 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 Funds have elected to defer losses as follows:
Equity Premium Income (JPZ) | Equity Premium Opportunity (JSN) | Equity Premium Advantage (JLA) | Equity Premium and Growth (JPG) | ||||||||||||||||
Post-October capital losses | $ | 1,673,731 | $ | 5,340,042 | $ | 1,649,058 | $ | 990,831 | |||||||||||
Late-year ordinary losses | — | — | — | — |
7. Management Fees and Other Transactions with Affiliates
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. Gateway is compensated for its services to the Funds from the management fees paid to the Adviser.
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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 | ||||||
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, 2013, the complex-level fee rate for each of these Funds was .1679%.
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Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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.
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.
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Annual Investment Management
Agreement Approval Process (Unaudited)
The Board of Trustees (each, a "Board" and each Trustee, a "Board Member") of the Funds, including the Board Members who are not parties to the Funds' advisory or sub-advisory agreements or "interested persons" of any such parties (the "Independent Board Members"), is responsible for approving the advisory agreements (each, an "Investment Management Agreement") between each Fund and Nuveen Fund Advisors, LLC (the "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 20-22, 2013 (the "May Meeting"), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
In preparation for its considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the 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 its annual review, the Board also held a separate meeting on April 17-18, 2013, to review the Funds' investment performance and consider an analysis provided by the 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 its 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 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 regarding, among other things, fund performance, fund expenses, premium and discount levels of closed-end funds, the performance of the investment teams, and compliance, regulatory and risk management matters. In addition to regular reports, the Advisor provides special reports to the Board or a committee thereof from time to time to enhance the Board's understanding of various topics that impact some or all the Nuveen funds (such as accounting and financial statement presentations of the various forms of leverage that may be used by a closed-end fund or an update on the valuation policies and procedures), to update the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Advisor. The Board also meets with key investment personnel managing the fund portfolios during the year. In October 2011, the Board also created two standing committees (the Open-End Fund Committee and the Closed-End Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive business practices of open-end and closed-end funds. These Committees meet prior to each quarterly Board meeting, and the Advisor provides presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
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. In this regard, the Independent Board Members made a site visit to the Sub-Advisor in June 2012. In addition, the ad hoc Securities Lending Committee of the Board met with certain service providers and the Audit Committee of the Board made a site visit to three pricing service providers.
The Board considers the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Advisory Agreements. The Independent Board Members also are assisted throughout the process by independent legal counsel. Counsel provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members' conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser's services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Advisor and its affiliates, the commitment of the Advisor to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Advisor and its staff 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 applicable initiatives Nuveen had taken for the closed-end 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, 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
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also considered Nuveen's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures. Given the Advisor's emphasis on business risk, the Board also appointed an Independent Board Member as a point person to review and keep the Board apprised of developments in this area during the year.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the 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 considered the new services and service enhancements that the Advisor has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Advisor's focus on product rationalization for both closed-end and open-end funds during the year, consolidating certain Nuveen funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various Nuveen funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain Nuveen funds. The Board recognized the Advisor's significant investment in technology initiatives to, among other things, create a central repository for fund and other Nuveen product data, develop a group within the Advisor designed to handle and analyze fund performance data, and implement a data system to support the risk oversight group. The Board also recognized the enhancements in the valuation group within the Advisor, including upgrading the team and process and automating certain basic systems, and in the compliance group with the addition of personnel, particularly within the testing group. With the advent of the Open-End Fund Committee and Closed-End Fund Committee, the Board also noted the enhanced support and comprehensive in-depth presentations provided by the Advisor to these committees.
In addition to the foregoing actions, the Board also considered other initiatives related to the Nuveen closed-end funds, including the significant level of oversight and administration necessary to manage leverage that has become increasingly varied and complex and the ongoing redesign of technology systems to manage and track the various forms of leverage; continued capital management services, including developing shelf offering programs for various funds; the implementation of projects designed to enhance data integrity for information published on the web and to increase the use of data received from third parties to gain market intelligence; and the continued communication efforts with shareholders, fund analysts and financial advisers. With respect to the 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 and campaigns designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen's support services included, among other things: developing materials covering the Nuveen closed-end fund product line and educational materials regarding closed-end funds; designing and executing various marketing campaigns; supporting and promoting the alternative minimum tax (AMT)-free funds; sponsoring and participating in conferences; communicating with closed-end fund analysts and financial advisors 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.
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of the Funds' performance and the applicable investment team. In general, in considering a fund's performance, the Board recognized that a fund's performance can be reviewed through various measures including the fund's absolute return, the fund's return compared to the performance of other peer funds, and the fund's performance compared to its respective benchmark. Accordingly, the Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "Performance Peer Group") and with recognized and/or customized benchmarks (i.e., benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2012 as well as performance information reflecting the first quarter of 2013. In addition, with respect to closed-end funds (such as the Funds), 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 evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data. The Board recognized that the performance data reflects a snapshot of time, in this case as of the end of the most recent calendar year or quarter. The Board noted that selecting a different performance period could derive significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder's investment period.
With respect to the comparative performance information, the Board recognized that the usefulness of comparative performance data as a frame of reference to measure a fund's performance may be limited because the Performance Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Advisor classified, in relevant part, the Performance Peer Groups of certain funds (including the Funds) as having significant differences from the funds but to still be somewhat relevant while the Performance Peer Groups of other funds were classified as having such significant differences as to be irrelevant. Accordingly, while the Board is cognizant of the relative performance of a fund's peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund's investment objectives, investment parameters and guidelines and considered that the variations between the objectives and investment parameters or guidelines of the funds with their peers and/or benchmarks result in differences in performance results. In addition, with respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Advisor the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
In considering the performance data for the Funds, the Independent Board Members noted that the Nuveen Equity Premium and Growth Fund (the "Equity Premium and Growth Fund") had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods. They also observed that the Equity Premium and Growth Fund outperformed its passive overwrite benchmark for the one-, three- and five-year periods. In addition, the Independent Board Members noted that each of the other Funds lagged its peers somewhat in the shorter periods, but demonstrated more favorable performance in the longer periods. In this regard, although the Nuveen Equity Premium Income Fund (the "Equity Premium Income Fund") performed in the third quartile for the
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one-year period, such Fund performed in the second quartile for the three- and five-year periods. Although the Nuveen Equity Premium Opportunity Fund (the "Equity Premium Opportunity Fund") and the Nuveen Equity Premium Advantage Fund (the "Equity Premium Advantage Fund") each performed in the fourth quartile in the one-year period, each such Fund performed in the second quartile for the three- and five-year periods. With respect to the Equity Premium Income Fund, the Equity Premium Opportunity Fund and the Equity Premium Advantage Fund, the Board also noted that the differences in the overwrite strategies applied by such Funds compared to peers generally contributed to the lower peer comparison during a rising equity market. Nevertheless, such Funds outperformed their passive overwrite benchmarks in the one-, three- and five-year periods.
Based on their review, the Independent Board Members determined that each Fund's investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fee, net management fee and net expense ratio in absolute terms as well as compared to the fees and expenses of a comparable universe of funds provided by an independent fund data provider (the "Peer Universe") and 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. In reviewing fees and expenses (excluding leverage costs and leveraged assets, as applicable), 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 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 the Funds had net management fees and net expense ratios (including fee waivers and expense reimbursements) that were below their 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 the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-advisor (which, in the case of the Funds, is a non-affiliated sub-advisor), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Advisor and the fee paid to the sub-advisor. In general terms, the fee to the Advisor reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-advisor
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
level, the fee generally reflects the portfolio management services provided by the sub-advisor. The Independent Board Members reviewed information regarding the nature of services provided by the Advisor (including through its affiliated sub-advisors), and the range of fees and average fee such sub-advisors assessed for such services to other clients. Such other clients include separately managed accounts (both retail and institutional accounts), hedge funds, 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. Many of the additional administrative services provided by the Advisor are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Advisor may vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. 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 other clients. The Independent Board Members noted that the Funds' sub-advisory fees were the result of arm's-length negotiations. The Independent Board Members further noted that the fees paid to the Sub-Advisor for its sub-advisory services were at or below the low end of its average fees earned.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2012. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
In reviewing profitability, the Independent Board Members recognized the Advisor's continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses and that various allocation methodologies may each be reasonable but yield different results. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among
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other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. Based on their review, the Independent Board Members concluded that the 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 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 indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. 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. at the end of 2010, the Board noted that a portion of such funds' assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Advisor for serving
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Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
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 Funds' portfolio transactions are determined by the Sub-Advisor. The Independent Board Members 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 Nuveen funds it advises. Such funds, however, may participate in transactions in which the Sub-Advisor has received unsolicited proprietary research.
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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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 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 investment 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.
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Reinvest Automatically,
Easily and Conveniently (continued)
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.
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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.
• Chicago Board Options Exchange (CBOE) S&P 500 BuyWrite Index (BXM): A benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
• Chicago Board Options Exchange (CBOE) NASDAQ-100 BuyWrite Index (BXN): A benchmark index that measures the performance of a theoretical portfolio that owns a portfolio of the stocks included in the NASDAQ-100 Index®, and "writes" (or sells) NASDAQ-100 Index (NDX) covered call options. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
• 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.
• Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
• 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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Notes
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Notes
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Notes
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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, LLC
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 Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC -0330 for room hours and operation.
Nuveen Funds' Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
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 | — | ||||||
JSN | — | ||||||
JLA | — | ||||||
JPG | — |
Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the 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 approximately $216 billion as of June 30, 2013.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com/cef
ESA-D-0613D
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.
Not applicable.
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 5, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Gifford R. Zimmerman |
|
| Gifford R. Zimmerman | |
| Chief Administrative Officer | |
| (principal executive officer) |
Date: September 5, 2013
By (Signature and Title) | /s/ Stephen D. Foy |
|
| Stephen D. Foy | |
| Vice President and Controller | |
| (principal financial officer) |
Date: September 5, 2013