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 | 811-21903 |
Nuveen Global Equity Income Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: December 31, 2015
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.
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| Closed-End Funds |
| Nuveen Investments | ||
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| Annual Report December 31, 2015
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| Nuveen Global Equity Income Fund | ||||||
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to Shareholders
Dear Shareholders,
For better or for worse, the financial markets spent most of the past year waiting for the U.S. Federal Reserve (Fed) to end its accommodative monetary policy. The policy has propped up stock and bond markets since the Great Recession, but the question remains: how will markets behave without its influence? This uncertainty was a considerable source of volatility for stock and bond prices for much of 2015, despite the Fed carefully conveying its intention to raise rates slowly and only when the economy shows evidence of readiness.
As was widely expected, the long-awaited Fed rate hike materialized in mid-December. While the move was interpreted as a vote of confidence on the U.S. economy’s underlying strength, the Fed emphasized that future rate increases will be gradual and guided by its ongoing assessment of financial conditions. Headwinds including rising borrowing costs, softer commodity prices, low inflation, a strong U.S. dollar and a stagnant global economy could necessitate keeping monetary conditions accommodative for longer. Meanwhile, policy makers in Europe and Japan are deploying their available tools to try to bolster their economies’ fragile growth, while Chinese authorities have stepped up efforts to manage China’s slowdown.
Although the new year began with a more pessimistic tone to investor sentiment and elevated volatility in the markets, we caution investors from making long-term decisions based on short-term news. In times like these, you can look to a professional investment manager with the experience and discipline to maintain the proper perspective on short-term events. And if the daily headlines do concern you, I encourage you to reach out to your financial advisor. Your financial advisor can help you evaluate your investment strategies in light of current events, your time horizon and risk tolerance.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
February 22, 2016
| 4 | Nuveen Investments |
Comments
Nuveen Global Equity Income Fund (JGV)
The Fund’s investment portfolio is managed by Tradewinds Global Investors, LLC, (Tradewinds), an affiliate of Nuveen Investments, Inc. Rod Parsley is the portfolio manager for the Fund.
During October 2015, the Fund’s Board of Trustees approved a currency hedging program, which became effective on January 1, 2016 (subsequent to the end of the reporting period). Under the program the Fund will systematically hedge the currency risk from its investments in non-U.S. dollar denominated foreign equity securities. By systematically hedging its non-U.S. dollar (USD) currency exposure, JGV seeks to enhance investor appeal and reduce the trading discounts of its common shares relative to net asset value by:
| • | Offering shareholders a hedged, USD-based global equity income portfolio; |
| • | Differentiating the Fund more clearly from its peers; |
| • | Reducing the Fund’s potential total return variability and downside risk; and |
| • | Generating a potentially higher, more consistent level of distributions over time. |
Here Rod reviews economic and market conditions, his portfolio management strategy and performance of the Fund for the twelve-month reporting period ended December 31, 2015.
What factors affected the U.S. economy and financial markets during the twelve-month reporting period ended December 31, 2015?
The U.S. economy grew at an overall moderate pace during the twelve-month reporting period. Harsh winter weather and a West coast port strike weighed on growth in the first quarter of 2015, but those factors proved temporary. Rebounding economic activity in the second quarter was followed by a mediocre advance in the latter half of the year. Real gross domestic product (GDP), which is the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes, increased at an annual rate of 0.7% in the fourth quarter of 2015, as reported by the “advance” estimate of the Bureau of Economic Analysis, down from 2.0% in the third quarter.
The labor and housing markets were among the bright spots in the economy during the reporting period, as both showed steady improvement. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 5.0% in December from 5.7% in January 2015, and job gains averaged slightly above 200,000 per month for the past twelve months. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.1% annual gain in November 2015 (most recent data available at the time this report was prepared). The 10-City and 20-City Composites reported year-over-year increases of 5.3% and 5.8%, respectively.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager 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 Fund disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
| Nuveen Investments | 5 |
Portfolio Manager’s Comments (continued)
With GDP growth averaging around 2% for the previous four quarters, the U.S. economic recovery continued to underwhelm. Consumers, whose purchases comprise the largest component of the U.S. economy, benefited from lower gasoline prices and an improving jobs market but didn’t necessarily spend more. Pessimism about the economy’s future and lackluster wage growth likely contributed to consumers’ somewhat muted spending. The sharp decline in energy prices and tepid wage growth kept inflation subdued during this reporting period. The Consumer Price Index CPI declined 0.1% in December on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 0.1% during the same period, below the Fed’s unofficial longer term inflation objective of 2.0%.
Business investment was also rather restrained. Corporate earnings growth slowed during 2015, reflecting an array of factors ranging from weakening demand amid sluggish U.S. and global growth to the impact of falling commodity prices and a strong U.S. dollar. Energy, materials and industrials companies were hit particularly hard by the downturn in natural resource prices, as well as the expectation of rising interest rates, which would make their debts more costly to service. With demand waning, companies, especially in the health care and technology sectors, looked to consolidations with rivals as a way to boost revenues. Merger and acquisition deals, both in the U.S. and globally, reached record levels in the calendar year 2015.
Although the current expansion continued to look subpar relative to past recoveries, the U.S. Federal Reserve (Fed) believed the economy was strong enough to begin the withdrawal of its stimulus policies. After winding down its bond buying program, known as quantitative easing, in October 2014, the Fed began telegraphing its intention to raise the target federal funds rate some time in 2015. The Fed had held the fed funds rate near zero since December 2008. However, the timing of its first rate hike was uncertain, particularly as the inflation rate stayed stubbornly low and signs of global economic weakness, notably from China, merited caution. After delaying the rate change at each prior meeting in 2015, the Fed announced in December 2015 that it would raise its main policy interest rate by 0.25%. The news had a relatively muted impact on the financial markets, as the move was widely expected.
The U.S. once again outperformed the rest of the world for 2015, emerging markets remained challenged and value indexes (as defined by the MSCI All Country World Value Index) meaningfully underperformed growth for the reporting period. While the MSCI All Country World Index ended the fourth quarter up over 5%, returns were negative for the year primarily due to significant declines during the third quarter. Much of the third quarter instability was triggered by China. The country devalued its currency in the middle of the quarter, possibly aiming to position the yuan as a candidate for inclusion among the International Monetary Fund’s Special Drawing Rights (SDRs) currency selections. This motivation would make sense in light of China’s continued efforts to build its international credibility and prestige. The market, however, seems to view this policy change as misguided, judging by the intense sell-off of Chinese equities following the announcement. Weak Chinese manufacturing reports helped to sustain losses despite governmental intervention. According to the most reliable data available, the country’s economy is still growing, but at a slower rate. Some of the negative developments impacting China may be related to the effects of a bumpy transition from a manufacturing and industrial based economy to a more services-oriented, less capital intensive one. We believe this transition will likely impact the mix of China-exposed companies that perform well versus those that lag.
Other emerging markets were also troubled during the reporting period, with the collection of countries like Russia and Brazil notably trailing developed equity markets. This outlier performance was partially related to emerging market currencies declining significantly against developed market currencies and also the continued weakness of commodity prices.
| 6 | Nuveen Investments |
What key strategies were used to manage the Fund during this twelve-month reporting period ended December 31, 2015?
The Fund seeks total return and dividend income by investing primarily in a diversified global portfolio of value equity securities and by opportunistically writing covered-call options. Our basic investment philosophy continues to be searching for good business franchises around the globe whose securities are selling below their intrinsic value. All else being equal, the Fund favors stocks which pay dividends over those that do not.
The Fund’s portfolio manager and the Tradewinds research team continue to find what it perceives to be significant value across many sectors globally, as value-oriented opportunities have been underappreciated in our view for an extended period. We believe this has resulted in a differentiated and high conviction portfolio.
We currently believe the outlook for many emerging markets is challenged in the short run, but there are strong companies in those regions that offer an attractive risk/reward balance over the longer term. We are also finding value in developed market companies that have traded down due to exposure to developing regions.
How did the Fund perform during this twelve-month reporting period ended December 31, 2015?
The table in the Performance Overview and Holding Summaries section of this report provides total returns for one-year, five-year and since inception periods ended December 31, 2015. The Fund’s total returns at net asset value (NAV) are compared with the performance of a corresponding market index. For the twelve-month reporting period, JGV underperformed both its comparative Blended Benchmark and the MSCI All Country World Index.
The Fund’s relative sector allocation effects were negative during the reporting period, but unfavorable stock selections were the driving factor behind underperformance. Stock selections within the utilities, energy and information technology sectors led detraction from relative performance. Underperformance was limited by favorable stock selections in the financials and health care sectors, along with an underweight position in the materials sector.
Individual holdings that contributed to the Fund’s underperformance included NRG Energy Inc., Micron Technology, Inc. and Andersons, Inc., however, we continue to have confidence in their performance over the long term. Electricity generation and distribution company NRG Energy Inc. was the largest detractor from performance. We believe debt complexities have caused investors to place much emphasis on certain troubled elements of NRG. Near the end of the reporting period, the company announced that its COO would be promoted to CEO, replacing a previous CEO who had emphasized projects outside of the company’s historical core operations. Semiconductor company Micron Technology, Inc. was another top detractor. Personal Computer (PC) Dynamic Random Access Memory (DRAM) prices had been soft as consumers delayed purchases of PCs before the release of Windows 10 in July 2015, and mobile DRAM prices have also been weak. Nonetheless, we believe Micron is extraordinarily inexpensive and well-positioned to benefit from improvement in the pricing cycle over the long-term. Diversified agricultural company Andersons, Inc. also detracted from performance. Andersons has been affected by negative sentiment related to the weak commodity complex. The company named a new CEO in September as a response to investor concerns over the company’s execution during the current challenging position in the pricing cycle.
Several holdings positively contributed to performance. Danish pharmaceutical company H. Lundbeck A/S was the top contributor to performance. The company benefited from organizational changes instituted by new CEO Kåre Schultz, previously of Novo Nordisk, which included cost controls and advancement of products under development. Also during the reporting period, Lundbeck announced expectations for receiving an additional “cognition benefit” claim for its recently released antidepressant Brintellix, which could positively impact prescriptions as it would be the only depression treatment in the U.S. with such a claim. Further, the company reported better-than-consensus financial results multiple times during the reporting period.
South America-focused agricultural firm Adecoagro SA was another top contributor. The company benefited from Argentina’s November election of conservative opposition candidate Mauricio Macri as president. Macri has denounced
| Nuveen Investments | 7 |
Portfolio Manager’s Comments (continued)
capital controls and export taxes on products such as corn, wheat and soybeans. The removal of these policies could have a substantially positive effect on Adecoagro’s earnings. The company has also benefited from recent rallies in sugar and ethanol prices, as well as relatively heavy capital expenditures in areas such as sugarcane crushing mills and transportation/delivery logistics. We continue to believe Adecoagro is well-positioned due to its best-in-class farmland and agricultural operations in Argentina and its low cost production of sugar and ethanol in Brazil.
Multi-national insurance company Ageas also contributed to performance. Stricter European solvency requirements are among the chief concerns for most European insurance companies, and Ageas has a favorable capitalization level in our view and its recent divestiture of a former Hong Kong life insurance unit. Further, the company’s more focused European business operations have experienced improved revenues. Ageas continues to engage in share buybacks, in an expression of its stated commitment to returning capital to shareholders.
As mentioned previously, the Fund continued to write call options on individual stocks held in its portfolio as part of its overall management strategy. The covered call writing strategy had a slightly positive contribution to the Fund’s performance during the reporting period.
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Information
DISTRIBUTION INFORMATION
The following information regarding the Fund’s distributions is current as of December 31, 2015, the Fund’s fiscal and tax year end, and may differ from previously issued distribution notifications. The Fund’s distribution levels may vary over time based on the Fund’s investment activities and portfolio investment value changes.
The Fund has adopted a managed distribution program. The goal of the Fund’s managed distribution program is to provide shareholders relatively consistent and predictable cash flow by systematically converting its expected long-term return potential into regular distributions. As a result, regular distributions throughout the year will likely include a portion of expected long-term and/or short-term gains (both realized and unrealized), along with net investment income.
Important points to understand about Nuveen fund managed distributions are:
| • | The Fund seeks to establish a relatively stable common share 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 the Fund’s past or future investment performance from its current distribution rate. |
| • | Actual common share returns will differ from projected long-term returns (and therefore the 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 period’s distributions are expected to be paid from some or all of the following sources: |
| • | net investment income consisting of regular interest and dividends, |
| • | net realized gains from portfolio investments, 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 the Fund’s capital. When the Fund’s returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when the Fund’s returns fall short of distributions, it 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 the Fund’s total return exceeds distributions. |
| • | Because distribution source estimates are updated throughout the current fiscal year based on the Fund’s performance, these estimates may differ from both the tax information reported to you in the Fund’s 1099 statement, as well as the ultimate economic sources of distributions over the life of your investment. |
The following table provides information regarding the Fund’s distributions and total return performance over various time periods. This information is intended to help you better understand whether the Fund’s returns for the specified time periods were sufficient to meet its distributions.
| Nuveen Investments | 9 |
Share Information (continued)
Data as of December 31, 2015
| Per Share Regular Distributions | Total Current Year Net Investment Income | Total Current Year Net Realized Gain/Loss | Current Unrealized Gain/Loss | Current Distribution Rate on NAV1,3 | Actual Full-Year Distribution Rate on NAV2,3 | Annualized Total Return on NAV | ||||||||||||||||||||||||||||||
| Inception Date | Latest Quarter | Total Current Year | 1-Year | 5-Year | ||||||||||||||||||||||||||||||||
7/2006 | $ | 0.2340 | $ | 0.9900 | $ | 0.1378 | $ | (0.3962 | ) | $ | (1.2120 | ) | 7.62 | % | 8.06 | % | (9.26 | )% | (2.64 | )% | ||||||||||||||||
| 1 | Current distribution per share, annualized, divided by the NAV per share on the stated date other than net investment income, as shown in the table immediately below. |
| 2 | Actual total per share distributions made during the full fiscal year, divided by the NAV per share on the stated date. |
3 Each distribution represents a “managed distribution” rate. For this Fund, at least in the just completed fiscal year, distributions may be comprised of sources other than net investment income, as shown in the table immediately below. |
The following table provides the Fund’s distribution sources as of December 31, 2015.
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year-end. More details about the Fund’s distributions and the basis for these amounts are available on www.nuveen.com/cef.
Data as of December 31, 2015
| Fiscal YTD | Fiscal YTD | |||||||||||||||||||||||||
| Source of Distribution | Per Share Amounts | |||||||||||||||||||||||||
| Net Investment Income | Realized Gains | Return of Capital1 | Distributions | Net Investment Income | Realized Gains | Return of Capital1 | ||||||||||||||||||||
| 14.03 | % | 0.00 | % | 85.97 | % | $0.9900 | $0.1389 | $0.0000 | $0.8511 | |||||||||||||||||
| 1 | Return of Capital may represent unrealized gains, return of shareholder’s principal, or both. In certain circumstances, all or a portion of the return of capital my be characterized as ordinary income under federal tax law. The actual tax characterization will be provided to shareholders on Form 1099-DIV shortly after calendar year-end. |
SHARE REPURCHASES
During August 2015, the Fund’s Board of Trustees reauthorized an open-market share repurchase program, allowing the Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.
As of December 31, 2015, and since the inception of the Fund’s repurchase program, the Fund has cumulatively repurchased and retired its outstanding shares as shown in the accompanying table.
| JGV | ||||
Shares cumulatively repurchased and retired | 625,700 | |||
Shares authorized for repurchase | 1,905,000 | |||
During the current reporting period, the Fund repurchased and retired its shares at a weighted average price per share and a weighted average discount per share as shown in the accompanying table.
| JGV | ||||
Shares repurchased and retired | 262,900 | |||
Weighted average price per share repurchased and retired | $ | 11.02 | ||
Weighted average discount per share repurchased and retired | 15.10 | % | ||
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OTHER SHARE INFORMATION
As of December 31, 2015, and during the current reporting period, the Fund’s share price was trading at a premium/(discount) to its NAV as shown in the accompanying table.
| JGV | ||||
NAV | $12.29 | |||
Share price | $10.92 | |||
Premium/(Discount) to NAV | (11.15 | )% | ||
12-month average premium/(discount) to NAV | (13.33 | )% | ||
| Nuveen Investments | 11 |
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.
Nuveen Global Equity Income Fund (JGV)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Common stock returns often have experienced significant volatility. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The risks of foreign investments are magnified in emerging markets. For these and other risks, including call option risk, please see the Fund’s web page at www.nuveen.com/JGV.
| 12 | Nuveen Investments |
JGV
Nuveen Global Equity Income Fund
Performance Overview and Holding Summaries as of December 31, 2015
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of December 31, 2015
| Average Annual | ||||||||||||
| 1-Year | 5-Year | Since Inception | ||||||||||
| JGV at NAV | (9.26)% | (2.64)% | 3.16% | |||||||||
| JGV at Share Price | (8.61)% | (4.26)% | 2.08% | |||||||||
| Blended Benchmark | (1.89)% | 5.78% | 5.02% | |||||||||
| MSCI All Country World Index | (2.36)% | 6.09% | 4.58% | |||||||||
Average Annual Total Returns as of December 31, 20151
(including retained gain tax credit/refund)
| Average Annual | ||||||||||||
| 1-Year | 5-Year | Since Inception | ||||||||||
| JGV at NAV | (9.26)% | (2.64)% | 3.25% | |||||||||
| JGV at Share Price | (8.61)% | (4.26)% | 2.17% | |||||||||
Since inception returns are from 7/24/06. 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. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. 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
| 1 | The Fund elected to retain a portion of its realized long-term capital gains for the tax year ended December 31, 2007, and pay required federal corporate income taxes on these amounts. These standardized total returns include the economic benefit to shareholders of record of this tax credit/refund. The Fund had no retained capital gains for the tax years ended December 31, 2008 through December 31, 2015 or for the tax year ended December 31, 2006. |
| Nuveen Investments | 13 |
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Fund Allocation
(% of net assets)
| Common Stocks | 98.5% | |||
| Mortgage-Backed Securities | 0.0% | 2 | ||
| Repurchase Agreements | 1.4% | |||
| Other Assets Less Liabilities | 0.1% | |||
Net Assets | 100% |
Portfolio Composition
(% of total investments)1
| Pharmaceuticals | 8.6% | |||
| Food Products | 8.5% | |||
| Insurance | 8.2% | |||
| Banks | 7.1% | |||
| Diversified Telecommunication Services | 6.2% | |||
| Real Estate Investment Trust | 5.6% | |||
| Oil, Gas & Consumable Fuels | 5.5% | |||
| Electronic Equipment, Instruments & Components | 4.2% | |||
| Food & Staples Retailing | 4.1% | |||
| Capital Markets | 3.9% | |||
| Independent Power & Renewable Electricity Producers | 3.9% | |||
| Automobiles | 3.5% | |||
| Chemicals | 3.2% | |||
| Life Sciences Tools & Services | 3.2% | |||
| Biotechnology | 2.8% | |||
| Semiconductors & Semiconductor Equipment | 2.8% | |||
| Other | 17.3% | |||
| Repurchase Agreements | 1.4% | |||
Total | 100% |
Top Five Issuers
(% of total investments)1
| CenturyLink Inc. | 4.1% | |||
| Andersons, Inc. | 4.1% | |||
| UBS Group AG | 3.9% | |||
| General Motors Company | 3.5% | |||
| Colony Financial Inc. | 3.3% |
Country Allocation
(% of total investments)1
| United States | 57.6% | |||
| United Kingdom | 7.9% | |||
| Switzerland | 6.1% | |||
| Netherlands | 4.7% | |||
| Denmark | 3.5% | |||
| Canada | 3.2% | |||
| Other | 17.0% | |||
Total | 100% |
| 1 | Excluding investments in derivatives. |
| 2 | Rounds to less than 0.1%. |
| 14 | Nuveen Investments |
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Global Equity Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Global Equity Income Fund (hereinafter referred to as the “Fund”) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
February 25, 2016
| Nuveen Investments | 15 |
JGV
Portfolio of Investments | December 31, 2015 |
| Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 98.5% | ||||||||||||||
COMMON STOCKS – 98.5% | ||||||||||||||
| Automobiles – 3.5% | ||||||||||||||
| 236,000 | General Motors Company, (2) | $ | 8,026,360 | |||||||||||
| Banks – 7.1% | ||||||||||||||
| 184,771 | ABN AMRO Group NV, (3) | 4,150,533 | ||||||||||||
| 935,000 | HSBC Holdings PLC, (4) | 7,381,086 | ||||||||||||
| 1,070,000 | Royal Bank of Scotland Group PLC, (3), (4) | 4,756,217 | ||||||||||||
Total Banks | 16,287,836 | |||||||||||||
| Beverages – 2.2% | ||||||||||||||
| 57,200 | Carlsberg AS, B Shares, (4) | 5,067,443 | ||||||||||||
| Biotechnology – 2.8% | ||||||||||||||
| 165,000 | Baxalta Inc. | 6,439,950 | ||||||||||||
| Capital Markets – 3.9% | ||||||||||||||
| 468,000 | UBS Group AG | 9,065,160 | ||||||||||||
| Chemicals – 3.2% | ||||||||||||||
| 83,400 | Agrium Inc. | 7,450,956 | ||||||||||||
| Commercial Services & Supplies – 2.7% | ||||||||||||||
| 1,777,233 | Cape PLC, (4) | 6,146,390 | ||||||||||||
| Diversified Telecommunication Services – 6.2% | ||||||||||||||
| 378,000 | CenturyLink Inc. | 9,510,480 | ||||||||||||
| 168,501 | Telefonica S.A, (3), (4) | 1,869,337 | ||||||||||||
| 182,000 | Telenor ASA, (4) | 3,033,678 | ||||||||||||
Total Diversified Telecommunication Services | 14,413,495 | |||||||||||||
| Electric Utilities – 1.3% | ||||||||||||||
| 106,000 | Exelon Corporation | 2,943,620 | ||||||||||||
| Electronic Equipment, Instruments & Components – 4.1% | ||||||||||||||
| 331,000 | Flextronics International Limited, (3) | 3,710,510 | ||||||||||||
| 193,000 | Ingram Micro, Inc., Class A | 5,863,340 | ||||||||||||
Total Electronic Equipment, Instruments & Components | 9,573,850 | |||||||||||||
| Energy Equipment & Services – 1.1% | ||||||||||||||
| 755,087 | Aker Solutions ASA, (4) | 2,571,030 | ||||||||||||
| Food & Staples Retailing – 4.1% | ||||||||||||||
| 298,000 | Andersons, Inc. | 9,425,740 | ||||||||||||
| Food Products – 8.5% | ||||||||||||||
| 543,000 | Adecoagro SA, (3) | 6,673,470 | ||||||||||||
| 149,500 | Archer-Daniels-Midland Company | 5,483,660 | ||||||||||||
| 87,600 | Bunge Limited | 5,981,328 | ||||||||||||
| 170,000 | MHP SA, 144A, GDR, (4) | 1,581,000 | ||||||||||||
Total Food Products | 19,719,458 | |||||||||||||
| Independent Power & Renewable Electricity Producers – 3.9% | ||||||||||||||
| 450,000 | AES Corporation | 4,306,500 | ||||||||||||
| 395,000 | NRG Energy Inc. | 4,649,150 | ||||||||||||
Total Independent Power & Renewable Electricity Producers | 8,955,650 | |||||||||||||
| 16 | Nuveen Investments |
| Shares | Description (1) | Value | ||||||||||||
| Insurance – 8.2% | ||||||||||||||
| 150,500 | Ageas, (4) | $ | 6,985,287 | |||||||||||
| 102,500 | Axis Capital Holdings Limited | 5,762,550 | ||||||||||||
| 95,000 | Endurance Specialty Holdings Limited | 6,079,050 | ||||||||||||
Total Insurance | 18,826,887 | |||||||||||||
| Life Sciences Tools & Services – 3.2% | ||||||||||||||
| 175,000 | Agilent Technologies, Inc. | 7,316,750 | ||||||||||||
| Media – 1.7% | ||||||||||||||
| 166,000 | Interpublic Group of Companies, Inc. | 3,864,480 | ||||||||||||
| Oil, Gas & Consumable Fuels – 5.5% | ||||||||||||||
| 86,725 | Apache Corporation | 3,856,661 | ||||||||||||
| 289,000 | Royal Dutch Shell PLC, Class B Shares, (4) | 6,586,576 | ||||||||||||
| 143,000 | YPF Sociedad Anonima, Sponsored ADR, Class D | 2,247,960 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 12,691,197 | |||||||||||||
| Pharmaceuticals – 8.6% | ||||||||||||||
| 91,000 | H. Lundbeck A/S, (4) | 3,107,220 | ||||||||||||
| 87,500 | Impax Laboratories Inc., (3) | 3,741,500 | ||||||||||||
| 82,000 | Pfizer Inc. | 2,646,960 | ||||||||||||
| 17,800 | Roche Holdings AG, (4) | 4,932,529 | ||||||||||||
| 127,000 | Sanofi-Aventis, Sponsored ADR | 5,416,550 | ||||||||||||
Total Pharmaceuticals | 19,844,759 | |||||||||||||
| Real Estate Investment Trust – 5.6% | ||||||||||||||
| 386,000 | Colony Capital, Inc., Class A | 7,519,280 | ||||||||||||
| 672,000 | Lexington Realty Trust | 5,376,000 | ||||||||||||
Total Real Estate Investment Trust | 12,895,280 | |||||||||||||
| Real Estate Management & Development – 1.6% | ||||||||||||||
| 460,000 | City Developments Limited, (4) | 2,474,620 | ||||||||||||
| 380,000 | Great Eagle Holdings Limited, (4) | 1,236,388 | ||||||||||||
Total Real Estate Management & Development | 3,711,008 | |||||||||||||
| Semiconductors & Semiconductor Equipment – 2.8% | ||||||||||||||
| 462,000 | Micron Technology, Inc., (3) | 6,541,920 | ||||||||||||
| Software – 2.1% | ||||||||||||||
| 269,000 | Infoblox, Incorporated, (3) | 4,946,910 | ||||||||||||
| Specialty Retail – 2.3% | ||||||||||||||
| 224,000 | DSW Inc., Class A | 5,344,640 | ||||||||||||
| Textiles, Apparel & Luxury Goods – 0.0% | ||||||||||||||
| 2,506,000 | China Hongxing Sports Limited, (5) | 2 | ||||||||||||
| Water Utilities – 2.3% | ||||||||||||||
| 762,000 | Companhia de Saneamento Basico do Estado de Sao Paulo, Sponsored ADR, (3) | 3,505,199 | ||||||||||||
| 3,975,000 | Sound Global Ltd., (3), (5) | 1,795,149 | ||||||||||||
Total Water Utilities | 5,300,348 | |||||||||||||
Total Common Stocks (cost $250,388,555) | 227,371,119 | |||||||||||||
| Nuveen Investments | 17 |
| JGV | Nuveen Global Equity Income Fund | |||
| Portfolio of Investments (continued) | December 31, 2015 | |||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (6) | Value | |||||||||||||||
MORTGAGE-BACKED SECURITIES – 0.0% | ||||||||||||||||||||
| Residentials – 0.0% | ||||||||||||||||||||
| $ | 32 | Fannie Mae Mortgage Pool 100195 | 2.664% | 8/20/22 | Aaa | $ | 32,446 | |||||||||||||
| $ | 32 | Total Mortgage-Backed Securities (cost $32,338) | 32,446 | |||||||||||||||||
Total Long-Term Investments (cost $250,420,893) | 227,403,565 | |||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||
| SHORT-TERM INVESTMENTS – 1.4% | ||||||||||||||||||||
| REPURCHASE AGREEMENTS – 1.4% | ||||||||||||||||||||
| $ | 3,277 | Repurchase Agreement with Fixed Income Clearing Corporation, | 0.030% | 1/04/16 | $ | 3,277,462 | ||||||||||||||
Total Short-Term Investments (cost $3,277,462) | 3,277,462 | |||||||||||||||||||
Total Investments (cost $253,698,355) – 99.9% | 230,681,027 | |||||||||||||||||||
Other Assets Less Liabilities – 0.1% (7) | 150,135 | |||||||||||||||||||
Net Assets – 100% | $ | 230,831,162 | ||||||||||||||||||
Investment in Derivatives as of December 31, 2015
Options Written outstanding:
| Number of Contracts | Description | Notional Amount (8) | Expiration Date | Strike Price | Value (7) | |||||||||||||||
| (1,020 | ) | General Motors Company | $ | (3,570,000 | ) | 2/19/16 | $ | 35.0 | $ | (88,740 | ) | |||||||||
| (1,020 | ) | Total Options Written (premiums received $112,847) | $ | (3,570,000 | ) | $ | (88,740 | ) | ||||||||||||
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) | Investment, or portion of investment, has been pledged as collateralize the net payment obligations for investments in derivatives. |
| (3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| (4) | For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (5) | Investment valued at fair value using methods determined in good faith by, or at the discretion of the Board. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (6) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchanged-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. Other assets less liabilities also includes the value of options as presented on the Statement of Assets and Liabilities. |
| (8) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
| 144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
See accompanying notes to financial statements.
| 18 | Nuveen Investments |
Assets and Liabilities | December 31, 2015 | |||||
Assets | ||||
Long-term investments, at value (cost $250,420,893) | $ | 227,403,565 | ||
Short-term investments, at value (cost approximates value) | 3,277,462 | |||
Receivable for: | ||||
Dividends | 428,034 | |||
Interest | 75 | |||
Reclaims | 121,792 | |||
Other assets | 31,159 | |||
Total assets | 231,262,087 | |||
Liabilities | ||||
Options written, at value (premiums received $112,847) | 88,740 | |||
Accrued expenses: | ||||
Management fees | 191,200 | |||
Custodian fees | 25,223 | |||
Investor relations expenses | 28,354 | |||
Professional fees | 33,372 | |||
Shareholder reporting expenses | 32,614 | |||
Trustees fees | 30,742 | |||
Other | 680 | |||
Total liabilities | 430,925 | |||
Net assets | $ | 230,831,162 | ||
Shares outstanding | 18,776,509 | |||
Net asset value (“NAV”) per share outstanding | $ | 12.29 | ||
Net assets consist of: | ||||
Shares, $0.01 par value per share | $ | 187,765 | ||
Paid-in surplus | 300,942,650 | |||
Undistributed (Over-distribution of) net investment income | (29,428 | ) | ||
Accumulated net realized gain (loss) | (47,260,229 | ) | ||
Net unrealized appreciation (depreciation) | (23,009,596 | ) | ||
Net assets | $ | 230,831,162 | ||
Authorized shares | Unlimited |
See accompanying notes to financial statements.
| Nuveen Investments | 19 |
Operations | Year Ended December 31, 2015 | |||||
Investment Income (net of foreign tax withheld of $204,536) | $ | 5,492,064 | ||
Expenses | ||||
Management fees | 2,549,273 | |||
Custodian fees | 113,818 | |||
Trustees fees | 8,753 | |||
Professional fees | 72,536 | |||
Shareholder reporting expenses | 54,305 | |||
Shareholder servicing agent fees | 318 | |||
Stock exchange listing fees | 7,947 | |||
Investor relations expenses | 53,078 | |||
Other | 15,827 | |||
Total expenses | 2,875,855 | |||
Net investment income (loss) | 2,616,209 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: | ||||
Investments and foreign currency | (9,120,883 | ) | ||
Options written | 1,598,341 | |||
Change in net unrealized appreciation (depreciation) of: | ||||
Investments and foreign currency | (20,586,377 | ) | ||
Options written | 260,649 | |||
Net realized and unrealized gain (loss) | (27,848,270 | ) | ||
Net increase (decrease) in net assets from operations | $ | (25,232,061 | ) |
See accompanying notes to financial statements.
| 20 | Nuveen Investments |
Changes in Net Assets | ||||||
| Year Ended 12/31/15 | Year Ended 12/31/14 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,616,209 | $ | 4,476,057 | ||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | (9,120,883 | ) | 13,631,268 | |||||
Options written | 1,598,341 | 2,511,786 | ||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | (20,586,377 | ) | (12,197,148 | ) | ||||
Options written | 260,649 | (491,386 | ) | |||||
Net increase (decrease) in net assets from operations | (25,232,061 | ) | 7,930,577 | |||||
Distributions to Shareholders | ||||||||
From net investment income | (2,634,017 | ) | (4,427,520 | ) | ||||
Return of capital | (16,137,900 | ) | (15,797,869 | ) | ||||
Decrease in net assets from distributions to shareholders | (18,771,917 | ) | (20,225,389 | ) | ||||
Capital Share Transactions | ||||||||
Cost of shares repurchased or retired | (2,901,378 | ) | (2,302,938 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | (2,901,378 | ) | (2,302,938 | ) | ||||
Net increase (decrease) in net assets | (46,905,356 | ) | (14,597,750 | ) | ||||
Net assets at the beginning of period | 277,736,518 | 292,334,268 | ||||||
Net assets at the end of period | $ | 230,831,162 | $ | 277,736,518 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (29,428 | ) | $ | (1,220,562 | ) | ||
See accompanying notes to financial statements.
| Nuveen Investments | 21 |
Highlights
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||||||
| Beginning NAV | 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 NAV | Ending Share Price | ||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 14.59 | $ | 0.14 | $ | (1.48 | ) | $ | (1.34 | ) | $ | (0.14 | ) | $ | — | $ | (0.85 | ) | $ | (0.99 | ) | $ | 0.03 | $ | 12.29 | $ | 10.92 | |||||||||||||||||
2014 | 15.22 | 0.23 | 0.18 | 0.41 | (0.23 | ) | — | (0.83 | ) | (1.06 | ) | 0.02 | 14.59 | 13.01 | ||||||||||||||||||||||||||||||
2013 | 15.96 | 0.35 | — | * | 0.35 | (0.37 | ) | — | (0.72 | ) | (1.09 | ) | — | * | 15.22 | 13.17 | ||||||||||||||||||||||||||||
2012 | 16.91 | 0.42 | (0.10 | ) | 0.32 | (0.49 | ) | (0.33 | ) | (0.45 | ) | (1.27 | ) | — | * | 15.96 | 14.91 | |||||||||||||||||||||||||||
2011 | 20.30 | 0.46 | (2.48 | ) | (2.02 | ) | (0.83 | ) | (0.46 | ) | (0.08 | ) | (1.37 | ) | — | 16.91 | 16.76 | |||||||||||||||||||||||||||
| 22 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Total Returns | Ratios to Average Net Assets(c) | |||||||||||||||||||||
| Based on NAV(b) | Based on Share Price(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | |||||||||||||||||
| (9.26 | )% | (8.61 | )% | $ | 230,831 | 1.09 | % | 0.99 | % | 99 | % | |||||||||||
| 2.75 | 6.73 | 277,737 | 1.11 | 1.54 | 128 | |||||||||||||||||
| 2.50 | (4.24 | ) | 292,334 | 1.16 | 2.30 | 143 | ||||||||||||||||
| 2.03 | (3.29 | ) | 306,591 | 1.20 | 2.61 | 51 | ||||||||||||||||
| (10.28 | ) | (11.00 | ) | 324,957 | 1.16 | 2.41 | 92 | |||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total Return Based on NAV is the combination of changes in NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 NAV. 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 NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
Total Return Based on Share Price 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.
| (c) | Each ratio includes the effect of dividends expense on securities sold short as follows: |
| Ratios of Dividends Expense on Securities Sold Short to Average Net Assets(e) | ||||
Year Ended 12/31: |
| |||
2013 | 0.01 | % | ||
2012 | 0.02 | |||
2011 | 0.03 | |||
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | Effective for periods beginning after December 31, 2013, the Fund no longer makes short sales of securities. |
| * | Rounds to less than $0.01 per share. |
See accompanying notes to financial statements.
| Nuveen Investments | 23 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Fund Information
Nuveen Global Equity Income Fund, (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company. The Fund’s shares are listed on the New York Stock Exchange (“NYSE”) and trade under the ticker symbol “JGV.” The Fund was organized as a Massachusetts business trust on May 17, 2006.
The end of the reporting period for the Fund is December 31, 2015, and the period covered by these Notes to Financial Statements is the fiscal year ended December 31, 2015 (the “current fiscal period”).
Investment Adviser
The Fund’s investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for the Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into a sub-advisory agreement with Tradewinds Global Investors, LLC (the “Sub-Adviser”), an affiliate of Nuveen, under which the Sub-Adviser manages the investment portfolio of the Fund, including its options strategy.
Investment Objectives and Principal Investment Strategies
The Fund’s investment objective is to provide a high level of total return by investing primarily in a diversified global portfolio of value equity securities. The Fund invests at least 80% of its managed assets (as defined in Note 7 – Management Fees and Other Transactions with Affiliates) in equity securities of which at least 40% will be of non-U.S. companies. The Fund may also opportunistically write covered calls on up to 35% of the equity portfolio and may invest up to 10% of its managed assets in debt securities.
Significant Accounting Policies
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standard Board (FASB) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Fund has earmarked securities in its portfolio with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Fund did not have any outstanding when-issued/delayed purchase commitments.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Common Shareholders
Distributions to common 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.
| 24 | Nuveen Investments |
The Fund makes quarterly cash distributions to common shareholders of a stated dollar amount per share. Subject to approval and oversight by the Fund’s Board of Trustees (the “Board”), the Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of the Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from the 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 nontaxable distribution (“return of capital”) for tax purposes. In the event that total distributions during a calendar year exceed the Fund’s total return on net asset value (“NAV”), the difference will reduce NAV per share. If the Fund’s total return on NAV exceeds total distributions during a calendar year, the excess will be reflected as an increase in NAV per share. The final determination of the source and character of all distributions paid by the Fund during the fiscal year is made after the end of the fiscal year and is reflected in the financial statements contained in the annual report as of December 31 each year.
The tax character of Fund distributions for a fiscal year is dependent upon the amount and tax character of distributions received from securities held in the Fund’s portfolio. Distributions received from certain securities in which the Fund invests, most notably REIT securities, may be characterized for tax purposes as ordinary income, long-term capital gain and/or a return of capital. The issuer of a security reports the tax character of its distributions only once per year, generally during the first two months of the calendar year. The distribution is included in the Fund’s ordinary income until such time the Fund is notified by the issuer of the actual tax character. For the fiscal year just ended, dividend income, net realized gain (loss) and unrealized appreciation (depreciation) recognized on the Statement of Operations reflect the amounts of ordinary income, capital gain, and/or return of capital as reported by the issuers of such securities.
Indemnifications
Under the Fund’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Fund may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows the Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Fund manages its cash collateral and securities collateral on a counterparty basis.
The Fund’s investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs 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). |
| Nuveen Investments | 25 |
Notes to Financial Statements (continued)
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depository Receipts (“ADR”) held by the Fund that trade in the United States are valued based on the last traded price, official closing price or the most recent bid price of the underlying non-U.S. traded stock, adjusted as appropriate for the underlying to ADR conversion ratio and foreign exchange rate, and from time-to-time 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, which may represent a transfer from a Level 1 to a Level 2 security.
Prices of fixed-income securities are provided by a pricing service approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
The value of exchange-traded options are based on the mean of the closing bid and ask prices and 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.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Fund’s NAV is determined, or if under the Fund’s procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Board. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 167,847,167 | $ | 57,728,801 | ** | $ | 1,795,151 | ** | $ | 227,371,119 | ||||||
Mortgage-Backed Securities | — | 32,446 | — | 32,446 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 3,277,462 | — | 3,277,462 | ||||||||||||
Investments in Derivatives | ||||||||||||||||
Options Written | (88,740 | ) | — | — | (88,740 | ) | ||||||||||
Total | $ | 167,758,427 | $ | 61,038,709 | $ | 1,795,151 | $ | 230,592,287 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry classifications. |
| ** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and Level 3. |
| 26 | Nuveen Investments |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
| (i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
| (ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
To the extent that the Fund invests in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Fund will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Fund’s investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign
currencies are converted into U.S dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
As of the end of the reporting period, the Fund’s investments in non-U.S. securities were as follows:
| Value | % of Total Investments | |||||||
Country: | ||||||||
United Kingdom | $ | 18,283,693 | 7.9 | % | ||||
Switzerland | 13,997,689 | 6.1 | ||||||
Netherlands | 10,737,109 | 4.7 | ||||||
Denmark | 8,174,663 | 3.5 | ||||||
Canada | 7,450,956 | 3.2 | ||||||
Other Countries | 39,389,670 | 17.0 | ||||||
Total non-U.S. securities | $ | 98,033,780 | 42.4 | % | ||||
The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4.00 p.m. Eastern Time. Investment 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 Fund and the amounts actually received.
| Nuveen Investments | 27 |
Notes to Financial Statements (continued)
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments, (ii) investments in derivatives and (iii) other assets and liabilities 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 (i) investments and (ii) other assets and liabilities 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 investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the 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.
The following table presents the repurchase agreements for the Fund that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
| Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | |||||||||
Fixed Income Clearing Corporation | $ | 3,277,462 | $ | (3,277,462 | ) | $ | — | |||||
| * | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Portfolio of Investments for details on the repurchase agreements. |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
The Fund is authorized to invest in certain derivative instruments, such as futures, options and swap contracts. The Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Fund records derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Fund’s 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 “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 options written” on the Statement of Operations. When an option is exercised or expires or the 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 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) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
During the current fiscal period, the Fund continued to write call options on individual stocks held in its portfolio as part of its overall management strategy.
The average notional amount of outstanding options written during the current fiscal period, were as follows:
Average notional amount of outstanding options written* | $(2,730,350) |
| * | 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. |
| 28 | Nuveen Investments |
The following table presents the fair value of all options written by the Fund as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||||
Underlying Risk Exposure | Derivative Instrument | Asset Derivatives | (Liability) Derivatives | |||||||||||||
| Location | Value | Location | Value | |||||||||||||
| Equity price | Options | — | $ | — | Options written, at value | $ | (88,740 | ) | ||||||||
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on options written on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
| Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Options Written | Change in Net Unrealized Appreciation (Depreciation) of Options Written | |||||||
Equity price | Options | $1,598,341 | $260,649 | |||||||
Market and Counterparty Credit Risk
In the normal course of business the 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 the Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of the 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.
The 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 the Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when the Fund has an unrealized loss, the Fund has instructed the custodian to pledge assets of the Fund as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal periods were as follows:
| Year Ended 12/31/15 | Year Ended 12/31/14 | |||||||
Shares repurchased and retired | (262,900 | ) | (164,588 | ) | ||||
Weighted average: | ||||||||
Price per share repurchased and retired | $ | 11.02 | $ | 13.97 | ||||
Discount per share repurchased and retired | 15.10 | % | 11.67 | % | ||||
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding derivative transactions) during the current fiscal period, aggregated $244,693,320 and $254,394,780, respectively.
Transactions in options written during the current fiscal period were as follows:
| Number of Contracts | Premiums Received | |||||||
Options outstanding, beginning of period | 1,090 | $ | 155,858 | |||||
Options written | 11,449 | 1,590,332 | ||||||
Options terminated in closing purchase transactions | (530 | ) | (95,377 | ) | ||||
Options expired | (5,794 | ) | (790,932 | ) | ||||
Options exercised | (5,195 | ) | (747,034 | ) | ||||
Options outstanding, end of period | 1,020 | $ | 112,847 | |||||
| Nuveen Investments | 29 |
Notes to Financial Statements (continued)
6. Income Tax Information
The Fund intends to distribute substantially all of its net 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 Fund realizes net capital gains, the 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 Fund 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 Fund 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 the treatment of paydown gains and losses and timing differences in recognizing certain gains and losses on investment transactions. 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 NAV of the Fund.
As of December 31, 2015, the cost and unrealized appreciation (depreciation) of investments, (excluding investments in derivatives) as determined on a federal income tax basis, were as follows:
Cost of investments | $ | 255,838,387 | ||
Gross unrealized: | ||||
Appreciation | $ | 16,522,353 | ||
Depreciation | (41,679,713 | ) | ||
Net unrealized appreciation (depreciation) of investments | $ | (25,157,360 | ) |
Permanent differences, primarily due to paydowns, foreign currency transactions and investments in interest-only mortgage-backed securities, resulted in reclassifications among the Fund’s components of net assets as of December 31, 2015, the Fund’s tax year end, as follows:
Paid-in surplus | $ | — | ||
Undistributed (Over-distribution of) net investment income | 1,208,942 | |||
Accumulated net realized gain (loss) | (1,208,942 | ) | ||
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2015, the Fund’s tax year end, were as follows:
|
| |||
Undistributed net ordinary income | $ | — | ||
Undistributed net long-term capital gains | — | |||
The tax character of distributions paid during the Fund’s tax years ended December 31, 2015 and December 31, 2014, was designated for purposes of the dividends paid deduction as follows: |
| |||
| 2015 | ||||
Distributions from net ordinary income1 | $ | 2,634,017 | ||
Distributions from net long-term capital gains | — | |||
Return of capital | 16,137,900 | |||
| 2014 | ||||
Distributions from net ordinary income1 | $ | 4,427,520 | ||
Distributions from net long-term capital gains | — | |||
Return of capital | 15,797,869 | |||
| 1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
As of December 31, 2015, the Fund’s tax year end, the Fund had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
Capital losses to be carried forward – not subject to expiration | $45,120,197 |
| 30 | Nuveen Investments |
7. Management Fees and Other Transactions with Affiliates
The Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Fund from the management fees paid to the Adviser.
The 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 the Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is calculated according to the following schedule:
| Average Daily Managed Assets* | Fund-Level Fee | |||
For the first $500 million | 0.8000 | % | ||
For the next $500 million | 0.7750 | |||
For the next $500 million | 0.7500 | |||
For the next $500 million | 0.7250 | |||
For managed assets over $2 billion | 0.7000 | |||
The annual complex-level fee, payable monthly, is calculated according to the following schedule:
| Complex-Level Managed Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | 0.2000 | % | ||
$56 billion | 0.1996 | |||
$57 billion | 0.1989 | |||
$60 billion | 0.1961 | |||
$63 billion | 0.1931 | |||
$66 billion | 0.1900 | |||
$71 billion | 0.1851 | |||
$76 billion | 0.1806 | |||
$80 billion | 0.1773 | |||
$91 billion | 0.1691 | |||
$125 billion | 0.1599 | |||
$200 billion | 0.1505 | |||
$250 billion | 0.1469 | |||
$300 billion | 0.1445 | |||
| * | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, 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 or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of December 31, 2015, the complex-level fee rate for the Fund was 0.1639%. |
The Fund pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Fund from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
8. Subsequent Events
During October 2015, the Fund’s Board of Trustees approved a currency hedging program, which became effective on January 1, 2016 (subsequent to the current fiscal period). Under the program the Fund will systematically hedge the currency risk from its investments in non-U.S. dollar denominated foreign equity securities. By systematically hedging its non-U.S. dollar (USD) currency exposure, the Fund seeks to enhance investor appeal and reduce the trading discounts of its common shares relative to net asset value by:
| • | Offering shareholders a hedged, USD-based global equity income portfolio; |
| • | Differentiating the Fund more clearly from its peers; |
| • | Reducing the Fund’s potential total return variability and downside risk; and |
| • | Generating a potentially higher, more consistent level of distributions over time. |
| Nuveen Investments | 31 |
Fund Information (Unaudited)
| Board of Trustees | ||||||||||
| William Adams IV* | Jack B. Evans | William C. Hunter | David J. Kundert | John K. Nelson | William J. Schneider | |||||
| Thomas S. Schreier, Jr.* | Judith M. Stockdale | Carole E. Stone | Terence J. Toth | Margaret L. Wolff** |
| * | Interested Board Member. |
| ** | Effective February 15, 2016. |
Fund Manager Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606 | Custodian State Street Bank Boston, MA 02111 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Independent Registered PricewaterhouseCoopers LLP Chicago, IL 60606 | Transfer Agent and State Street Bank Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 | ||||
Distribution Information
The Fund hereby designates its percentage of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and its percentage as qualified dividend income (“QDI”) for individuals under Section 1(h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| JGV | ||||
% DRD | 77.47% | |||
% QDI | 100.00% | |||
Foreign Taxes
The Fund paid qualifying foreign taxes of $204,536 and earned $2,759,521 foreign source income during the year ended December 31, 2015. Pursuant to Section 853 of the Internal Revenue Code, the Fund hereby designates $0.01 per share as foreign taxes paid and $0.15 per share as income earned from foreign sources for the year ended December 31, 2015. The actual foreign tax credit distribution will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
Quarterly Form N-Q Portfolio of Investments Information
The 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
The Fund’s Chief Executive Officer (CEO) 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. The Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Share Repurchases
The Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, the Fund repurchased shares of its common stock, as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
| JGV | ||||
Shares Repurchased | 262,900 | |||
FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.
| 32 | Nuveen Investments |
Used in this Report (Unaudited)
| n | 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. |
| n | Barclays High Yield Index: An index that covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc. are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included). Original issue zeroes, step-up coupon structures and 144-As are also included. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
| n | Barclays U.S. Aggregate Bond Index: A measure that represents securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
| n | Blended Benchmark: A blended return comprised of 1) 80% MSCI All Country World Index; 2) 15% Barclays U.S. Aggregate Bond Index; and 3) 5% Barclays High Yield Index. Returns assume reinvestment of distributions, but do not include the effects of any sales charges or management fees. |
| n | 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. |
| n | MSCI All Country World Index: The MSCI (Morgan Stanley Capital International) All Country World Index is published by Morgan Stanley Capital International, Inc. It is a free float-adjusted market capitalization index that is designed to measure global developed and emerging market equity performance. The index covers 49 developed and emerging market countries. Returns assume reinvestment of distributions, but do not include the effects of any sales charges or management fees. |
| n | MSCI (Morgan Stanley Capital International) All Country World Value Index: An index that captures large and mid cap securities exhibiting overall value style characteristics across 23 Developed Markets countries and 23 Emerging Markets (EM) countries. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| n | Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding. |
| Nuveen Investments | 33 |
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.
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.
| 34 | Nuveen Investments |
Board
Members & Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at eleven. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed and Term(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | ||||
| Independent Board Members: | ||||||||
n WILLIAM J. SCHNEIDER | Chairman of Miller-Valentine Partners, a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; an owner in several other Miller Valentine entities; Board Member of Med-America Health System, and WDPR Public Radio station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council | |||||||
1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Board Member | Class III | 197 | |||||
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n JACK B. EVANS | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | |||||||
1948 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1999 Class III | 197 | |||||
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n WILLIAM C. HUNTER | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and past President (2010-2014) Beta Gamma Sigma, Inc., The International Business Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | |||||||
1948 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2004 Class I | 197 | |||||
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n DAVID J. KUNDERT | Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013), retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible | |||||||
1942 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2005 Class II | 197 | |||||
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| Nuveen Investments | 35 |
Board Members & Officers (Unaudited) (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(1) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | ||||
| Independent Board Members (continued): | ||||||||
n JOHN K. NELSON | Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, senior external advisor to the financial services practice of Deloitte Consulting LLP (2012- 2014): formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets-the Americas (2006- 2007), CEO of Wholesale Banking North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading – North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 Class II | 197 | |||||
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n JUDITH M. STOCKDALE | Board Member, Land Trust Alliance (since 2013) and U.S. Endowment for Forestry and Communities (since 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | |||||||
1947 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 1997 Class I | 197 | |||||
n CAROLE E. STONE | Director, Chicago Board Options Exchange, Inc. (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); Director, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | |||||||
1947 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2007 Class I | 197 | |||||
n TERENCE J. TOTH | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007): Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | |||||||
1959 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2008 Class II | 197 | |||||
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n MARGARET L. WOLFF | Member of the Board of Directors (since 2013) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | |||||||
1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2016 Class I | 197 | |||||
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| 36 | Nuveen Investments |
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Board Member | ||||
| Interested Board Members: | ||||||||
n WILLIAM ADAMS IV(2) | Senior Executive Vice President, Global Structured Products (since 2010); formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); Executive Vice President of Nuveen Securities, LLC; President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago. | |||||||
1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 Class II | 197 | |||||
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n THOMAS S. SCHREIER, JR.(2) | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; Director of Allina Health and a member of its Finance, Audit and Investment Committees: formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 Class III | 197 | |||||
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| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
n GIFFORD R. ZIMMERMAN | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | |||||||
1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | 198 | |||||
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n CEDRIC H. ANTOSIEWICZ | Managing Director of Nuveen Securities, LLC. (since 2004); Managing Director of Nuveen Fund Advisors, LLC (since 2014). | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2007 | 90 | |||||
n MARGO L. COOK | Senior Executive Vice President of Nuveen Investments, Inc.; Executive Vice President, Investment Services of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since 2011); Co-Chief Executive Officer (since 2015); previously, Executive Vice President (2013-2015) of Nuveen Securities, LLC; Chartered Financial Analyst. | |||||||
1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | 198 | |||||
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| Nuveen Investments | 37 |
Board Members & Officers (Unaudited) (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds (continued): | ||||||||
n LORNA C. FERGUSON | Managing Director (since 2004) of Nuveen Investments Holdings, Inc. | |||||||
1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | 198 | |||||
n STEPHEN D. FOY | Managing Director (since 2014), formerly, Senior Vice President (2013-2014) and Vice President (2005-2013) of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | |||||||
1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | 198 | |||||
n SHERRI A. HLAVACEK | Executive Vice President (since May 2015, formerly, Managing Director) and Controller of Nuveen Fund Advisors, LLC; Managing Director and Controller of Nuveen Commodities Asset Management, LLC; Executive Vice President (since May 2015, formerly, Managing Director), Treasurer and Controller of Nuveen Asset Management, LLC; Executive Vice President, Principal Financial Officer (since July 2015, formerly, Managing Director), Treasurer and Corporate Controller of Nuveen Investments, Inc.; Executive Vice President (since May 2015, formerly, Managing Director), Treasurer and Corporate Controller of Nuveen Investments Advisers Inc. and Nuveen Investments Holdings, Inc.; Managing Director, Chief Financial Officer and Corporate Controller of Nuveen Securities, LLC; Vice President, Controller and Treasurer of NWQ Investment Management Company, LLC; Vice President and Controller of Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC; Certified Public Accountant. | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2015 | 198 | |||||
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n WALTER M. KELLY | Senior Vice President (since 2008) of Nuveen Investment Holdings, Inc. | |||||||
1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | 198 | |||||
n TINA M. LAZAR | Senior Vice President of Nuveen Investments Holdings, Inc. and Nuveen Securities, LLC. | |||||||
1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | 198 | |||||
n KEVIN J. MCCARTHY | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary, Nuveen Investments, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | |||||||
1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | 198 | |||||
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n KATHLEEN L. PRUDHOMME | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | |||||||
1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | 198 | |||||
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| 38 | Nuveen Investments |
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(3) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds (continued): | ||||||||
n JOEL T. SLAGER | Fund Tax Director for Nuveen Funds (since 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013). | |||||||
1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | 198 | |||||
| (1) | The Board Members serve three year terms. The Board of Trustees is divided into three classes. Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. |
| (2) | “Interested person” as defined in the 1940 Act, by reason of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
| (3) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. |
| Nuveen Investments | 39 |
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| Nuveen Investments: | ||||||||||||||
| Serving Investors for Generations | ||||||||||||||
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| Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio. | ||||||||||||||
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Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the 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 $225 billion as of December 31, 2015. | ||||||||||||||
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Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef | ||||||||||||||
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com/cef
EAN-H-1215D 14101-INV-Y-02/17
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Shareholder/FundGovernance.aspx. (To view the code, click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Directors or Trustees (“Board”) determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial experts are Carole E. Stone and Jack B. Evans, who are “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
NUVEEN GLOBAL EQUITY INCOME FUND
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with PricewaterhouseCoopers LLP the Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND
Fiscal Year Ended | Audit Fees Billed to Fund 1 | Audit-Related Fees Billed to Fund 2 | Tax Fees Billed to Fund 3 | All Other Fees Billed to Fund 4 | ||||||||||||
December 31, 2015 | $ | 32,596 | $ | 680 | $ | 21,916 | $ | 0 | ||||||||
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Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
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December 31, 2014 | $ | 31,767 | $ | 0 | $ | 11,351 | $ | 0 | ||||||||
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Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
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1 “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements.
2 “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage.
3 “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculation performed by the principal accountant.
4 “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage.
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to PricewaterhouseCoopers LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
Fiscal Year Ended | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
December 31, 2015 | $ | 0 | $ | 0 | $ | 0 | ||||||
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Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | ||||||
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December 31, 2014 | $ | 0 | $ | 0 | $ | 0 | ||||||
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Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | ||||||
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NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLP’s independence.
Fiscal Year Ended | Total Non-Audit Fees Billed to Fund | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
December 31, 2015 | $ | 21,916 | $ | 0 | $ | 0 | $ | 21,916 | ||||||||
December 31, 2014 | $ | 11,351 | $ | 0 | $ | 0 | $ | 11,351 | ||||||||
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant’s Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Jack B. Evans, David J. Kundert, John K. Nelson, Carole E. Stone and Terence J. Toth.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, LLC, formerly known as Nuveen Fund Advisors, Inc., is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Tradewinds Global Investors, LLC (“Tradewinds” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser’s policies and procedures. The Adviser periodically monitors the Sub-Adviser’s voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, LLC (“NFALLC”) is the registrant’s investment adviser (NFALLC is also referred to as the “Adviser”). NFALLC is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Tradewinds Global Investors, LLC (“Tradewinds”), for a portion of the registrant’s investments (Tradewinds is also referred to as “Sub-Adviser”). Tradewinds, as Sub-Adviser, provides discretionary investment advisory services. The following section provides information on the portfolio managers at the Sub-Adviser:
Tradewinds Global Investors, LLC
| Item 8(a)(1). | PORTFOLIO MANAGER BIOGRAPHY |
Rodney A. Parsley, Managing Director, Portfolio Manager and Equity Analyst
Rod Parsley is an energy analyst at Tradewinds. Rod joined Tradewinds in June 2012 with 15 years of investment experience, most recently at Perella Weinberg Partners, where he was a partner in the firm and the portfolio manager for its Sustainable Resources Fund, investing in the global energy, natural resource, water and agriculture sectors. Prior to that position, he was the portfolio manager of The Water Fund, a value-driven hedge fund that invested in global water and resource-related companies. Rod earned his bachelor’s degree in economics and politics from Pomona College, and an MBA from Harvard Business School.
| Item 8(a)(2). | OTHER ACCOUNTS MANAGED |
In addition to the Fund, as of December 31, 2015, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts:
| Rod Parsley | ||||
| (a) RICs | ||||
| Number of accts | 0 | |||
| Assets ($000s) | $ | 0 | ||
| (b) Other pooled accts | ||||
| Non-performance fee accts | ||||
Number of accts | 0 | |||
Assets ($000s) | ||||
| (c) Other | ||||
| Non-performance fee accts | ||||
Number of accts | 0 | |||
Assets ($000s) | $ | 0 | ||
| Performance fee accts | ||||
Number of accts | 0 | |||
Assets ($000s) | 0 | |||
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or perceived conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented with the following potential conflicts, which are not intended to be an exhaustive list:
| • | The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Tradewinds seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models. |
| • | If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Tradewinds has adopted procedures for allocating limited opportunities across multiple accounts. |
| • | With respect to many of its clients’ accounts, Tradewinds determines which broker to utilize when placing orders for execution, consistent with its duty to seek to obtain best execution of the transaction. However, with respect to certain other accounts, Tradewinds may be limited by the client with respect to the selection of brokers when the client requests Tradewinds to direct trade through a particular broker. In these cases, Tradewinds may place separate transactions for certain accounts that may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of other accounts. Tradewinds seeks to minimize market impact by using its discretion in releasing orders in a manner that causes the least possible impact. |
| • | Finally, the appearance of a conflict of interest may arise where Tradewinds has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities. Tradewinds periodically performs a comparative analysis of the performance between accounts with performance fees and those without performance fees. |
Tradewinds has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
| Item 8(a)(3). | FUND MANAGER COMPENSATION |
Tradewinds offers a highly competitive compensation structure with the purpose of attracting and retaining the most talented investment professionals. These professionals are rewarded through a combination of cash and long-term incentive compensation as determined by the firm’s President, Co-Chief Investment Officers, and group heads as appropriate. Total cash compensation (TCC) consists of both a base salary and an annual bonus.
Tradewinds annually benchmarks TCC to prevailing industry norms with the objective of achieving competitive levels for all contributing professionals. In addition, Nuveen annually participates in the McLagan compensation survey, and regularly benchmarks employee salaries, bonus, and total cash levels to ensure it remains competitive. Compensation is not calculated as a percentage of management or incentive fees.
Available bonus pool compensation is primarily a function of the firm’s overall annual profitability. Individual bonuses are based primarily on the following:
| • | Overall performance of client portfolios |
| • | Objective review of stock recommendations versus global sector benchmarks |
| • | Subjective review of the professional’s contributions to portfolio strategy, teamwork, collaboration and work ethic |
An employee equity participation program was implemented during the first quarter of 2012, and supplemented in early 2014. It enables a broad group of our team to participate in the long-term success of Tradewinds by sharing in the earnings of the firm.
At Tradewinds, we believe that we are an employer of choice. Our analysts have a meaningful impact on the portfolio and, therefore, are compensated in a similar manner as portfolio managers at many other firms. Benefits outside of compensation include a college tuition program for the children of full-time employees whereby they are eligible for reimbursement of tuition and other mandatory fees.
| Item 8(a)(4). | OWNERSHIP OF JGV SECURITIES AS OF DECEMBER 31, 2015 |
Name of Portfolio Manager | None | $1 - $10,000 | $10,001- $50,000 | $50,001- $100,000 | $100,001- $500,000 | $500,001- $1,000,000 | Over $1,000,000 | |||||||
Rod Parsley | X |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* | (a) TOTAL NUMBER OF SHARES (OR UNITS) PURCHASED | (b) AVERAGE PRICE PAID PER SHARE (OR UNIT) | (c) TOTAL NUMBER OF SHARES (OR UNITS) PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS | (d)* MAXIMUM NUMBER (OR APPROXIMATE DOLLAR VALUE) OF SHARES (OR UNITS) THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS | ||||||||||||
JANUARY 1-31, 2015 | 0 | 0 | 1,905,000 | |||||||||||||
FEBRUARY 1-28, 2015 | 0 | 0 | 1,905,000 | |||||||||||||
MARCH 1-31, 2015 | 0 | 0 | 1,905,000 | |||||||||||||
APRIL 1-30, 2015 | 0 | 0 | 1,905,000 | |||||||||||||
MAY 1-31, 2015 | 0 | 0 | 1,905,000 | |||||||||||||
JUNE 1-30, 2015 | 2,700 | $ | 12.96 | 2,700 | 1,902,300 | |||||||||||
JULY 1-31, 2015 | 0 | 0 | 1,902,300 | |||||||||||||
AUGUST 1-31, 2015 | 58,800 | $ | 11.54 | 58,800 | 1,846,200 | |||||||||||
SEPTEMBER 1-30, 2015 | 53,900 | $ | 10.75 | 53,900 | 1,792,300 | |||||||||||
OCTOBER 1-31, 2015 | 8,200 | $ | 10.62 | 8,200 | 1,784,100 | |||||||||||
NOVEMBER 1-30, 2015 | 96,200 | $ | 10.95 | 96,200 | 1,687,900 | |||||||||||
DECEMBER 1-31, 2015 | 43,100 | $ | 10.73 | 43,100 | 1,644,800 | |||||||||||
TOTAL | 262,900 | |||||||||||||||
* The registrant’s repurchase program, for the repurchase of 1,905,000 shares, was authorized on August 6, 2014. The program was reauthorized for a maximum repurchase amount of 1,905,000 shares on August 4, 2015. Any repurchases made by the registrant pursuant to the program were made through open-market transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15 (b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/CEF/Shareholder/FundGovernance.aspx and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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 Global Equity Income Fund
| By (Signature and Title) | /s/ Kevin J. McCarthy | |||
| Kevin J. McCarthy | ||||
| Vice President and Secretary | ||||
| Date: March 9, 2016 | ||||
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: March 9, 2016 | ||||
| By (Signature and Title) | /s/ Stephen D. Foy | |||
| Stephen D. Foy | ||||
| Vice President and Controller | ||||
| (principal financial officer) | ||||
| Date: March 9, 2016 | ||||