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 811-21979
Nuveen Investment Trust V
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Christopher M. Rohrbacher
Vice President and Secretary
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: June 30, 2018
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Nuveen Equity Funds
| | | | | | | | | | | | |
| Fund Name | | Class A | | Class C | | Class R3 | | Class R6 | | Class I | | Class T |
| Nuveen Global Infrastructure Fund | | FGIAX | | FGNCX | | FGNRX | | FGIWX | | FGIYX | | FGNTX |
| Nuveen Global Real Estate Securities Fund | | NGJAX | | NGJCX | | — | | NGJFX | | NGJIX | | NGJTX |
| Nuveen Real Asset Income Fund | | NRIAX | | NRICX | | — | | NRIFX | | NRIIX | | NRITX |
| Nuveen Real Estate Securities Fund | | FREAX | | FRLCX | | FRSSX | | FREGX | | FARCX | | FRYTX |
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Table
of Contents
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Chairman’s Letter to Shareholders
Dear Shareholders,
I am honored to serve as the new independent chairman of the Nuveen Fund Board, effective July 1, 2018. I’d like to gratefully acknowledge the stewardship of my predecessor William J. Schneider and, on behalf of my fellow Board members, reinforce our commitment to the legacy of strong, independent oversight of your Funds.
The increase in market volatility this year reflects greater uncertainty among investors. The global economic outlook is less clear cut than it was in 2017. U.S. growth is again decoupling from that of the rest of the world, and the U.S. dollar and interest rates have risen in response. Trade concern rhetoric and the imposition of tariffs between the U.S. and its major trading partners has recently dampened business sentiment and could pose a risk to growth expectations going forward. A host of other geopolitical concerns, including the ongoing Brexit and North American Free Trade Agreement negotiations, North Korea relations and rising populism around the world, remain on the horizon.
Despite these risks, global growth remains intact, albeit at a slower pace, providing support to corporate earnings. Fiscal stimulus, an easing regulatory environment and robust consumer spending recently helped boost the U.S. economy’s momentum. Subdued inflation pressures have kept central bank policy accommodative, even as Europe moves closer to winding down its monetary stimulus and the Federal Reserve remains on a moderate tightening course.
Headlines and political noise will continue to obscure underlying fundamentals at times and cause temporary bouts of volatility. We encourage you to work with your financial advisor to evaluate your goals, timeline and risk tolerance if short-term market fluctuations are a concern. 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,
Terence J. Toth
Chairman of the Board
August 24, 2018
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Portfolio Managers’ Comments
Nuveen Global Infrastructure Fund
Nuveen Global Real Estate Securities Fund
Nuveen Real Asset Income Fund
Nuveen Real Estate Securities Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen LLC. For the Nuveen Global Infrastructure Fund, Jay L. Rosenberg has been a portfolio manager since its inception in 2007 and Tryg T. Sarsland has been a portfolio manager since 2012. For the Nuveen Global Real Estate Securities Fund, Jay L. Rosenberg has been a portfolio manager since its inception in 2018, along with Scott C. Sedlak. For the Nuveen Real Asset Income Fund, both Jay L. Rosenberg and Jeffrey T. Schmitz, CFA, have been portfolio managers since the Fund’s inception in 2011. Brenda A. Langenfeld, CFA, and Tryg T. Sarsland were added as portfolio managers in 2015. For the Nuveen Real Estate Securities Fund, Jay L. Rosenberg has served as a portfolio manager since he joined the Fund’s management team in 2005, while Scott C. Sedlak and Sarah Wade joined the team as portfolio managers in 2011 and 2017, respectively.
Effective January 26, 2018, the Nuveen Fund Board approved an investment policy change for the Nuveen Real Asset Income Fund that allows investment of up to 5% in real assets-related senior loans.
Effective August 21, 2018 (subsequent to the close of the reporting period), the Nuveen Global Infrastructure Fund and the Nuveen Global Real Estate Securities Fund have a primary benchmark change and the Nuveen Real Asset Income Fund has a secondary benchmark change. The benchmark changes reflect a change from the gross total return (“TR”) version of the Fund’s index to the net total return (“NR”) of the same index. The current total return methodology assumes full reinvestment of dividends the Funds earn on non-U.S. equities with no tax withheld. The proposed net return methodology withholds taxes on foreign dividends according to rates set by each foreign country. The proposed changes better reflect the actual foreign dividend withholding taxes incurred by the Funds, which impacts Fund performance.
On the following pages, the portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month and/or abbreviated reporting period ended June 30, 2018.
Nuveen Global Infrastructure Fund
How did the Fund perform during the six-month period ended June 30, 2018?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year, five-year and since inception periods ended June 30, 2018. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV outperformed the S&P Global Infrastructure Index TR (Total Return), the new primary benchmark, the S&P Global Infrastructure Index NR (Net Return) and the Lipper classification average during the six-month reporting period.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. 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.
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Portfolio Managers’ Comments (continued)
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks to provide long-term growth of capital and income by investing primarily in equity securities issued by U.S. and non-U.S. companies that typically derive the majority of their value from owned or operated infrastructure assets. During the reporting period, our strategy for managing the Fund remained consistent as we focused on buying global infrastructure companies that own and operate long life assets that have visible cash flows, strong balance sheets, manageable amounts of leverage and inelastic demand characteristics. We believe these types of companies will have ongoing access to capital and the best chances for producing sustainable and growing cash flow. The Fund is structured using a number of core infrastructure companies that we believe should provide long-term outperformance versus the market, combined with more opportunistic holdings that we believe are undervalued by the market in the short term. We have exposure around the globe to a mixture of holdings that represent significant value, as well as positions in companies that may prove to be more stable in a slowly growing global economy.
During the six-month reporting period, the global infrastructure sector experienced weakness with the segment returning -3.06% as measured by the S&P Global Infrastructure Index TR, underperforming domestic equities by more than 5%. The segment also fell short of global equities, as measured by the MSCI All Country World Index, by more than 3%. The long-dated nature of many of the contracts and concession agreements that govern infrastructure company revenues makes their cash flow streams more visible, which provides defensive characteristics relative to broader equities. However, this same factor also makes infrastructure companies more sensitive to interest rate increases. Rates rose somewhat quickly in the first few months of the reporting period, putting downward pressure on stock prices within the infrastructure group. In the second half of the reporting period, rates were relatively stable and infrastructure regained some of the ground it had lost versus broader global equities.
Within the benchmark index, master limited partnerships (MLPs) and rail holdings were the only sectors that posted positive absolute returns for the reporting period. MLPs recorded solid gains as the segment finally benefited from the strong price advance for crude oil. Earlier in 2018, MLPs were adversely impacted by a ruling by the Federal Energy Regulatory Commission (FERC) stating that their “cost of service” calculations, meaning the allowable return granted for interstate pipeline systems, was no longer going to include an income tax allowance. However, in the second half of the reporting period, the market was attracted to compelling valuations, strengthening fundamentals and a strong commodity market and looked past the regulatory decision, causing the MLP space to rally. Meanwhile, the rail sector performed well because the segment had stronger underlying fundamentals and was more tied to an improving economy, which helped offset the impact of rising rates. The weakest areas within the benchmark index included the diversified infrastructure and ports sectors. The diversified infrastructure sector fell approximately 34% due to issues surrounding Macquarie Infrastructure Corporation. Macquarie Infrastructure was the only benchmark constituent in this sector until partway through the reporting period. Ports, especially Chinese ports, seemed to struggle under the escalating rhetoric concerning a potential trade war after the U.S. imposed tariffs on imported steel and aluminum and identified hundreds of Chinese imports that were under consideration for additional duties. The sector was down nearly 20% in the index.
The Fund benefited from the ports, diversified infrastructure, gas utilities and pipeline sectors. On the other hand, the Fund experienced weakness from the electric utilities and electric transmission sectors.
The most significant contributor to the Fund’s outperformance was our stock selection in ports. We positioned the Fund with underweight positions in all three Chinese seaport index constituents, including Hutchison Port Holdings Trust, China Merchants Port Holdings Co., Ltd. and COSCO SHIPPING Ports Limited, which resulted in most of its relative outperformance for the group. As mentioned above, shares of these companies suffered due to the escalating trade war rhetoric between the U.S. and China. After the Trump Administration placed new tariffs on aluminum and steel imports, it also mentioned imposing tariffs on hundreds of other Chinese goods. The potential reduction in demand, which would lead to a slowdown in overall trade, weighed heavily on Chinese port stocks.
Within the diversified infrastructure sector, the Fund benefited from security selection, specifically a significant underweight in the largest benchmark constituent, Macquarie Infrastructure Corporation. While Macquarie Infrastructure is classified as a diversified infrastructure company, its largest business is oil and gas storage. We typically prefer to gain access to these types of companies through more “pure-play” pipeline and MLP companies, rather than owning this name. In late 2017, the company’s CEO James Hooke unexpectedly stepped down to run toll road group Macquarie Atlas Roads. In February 2018, new CEO Christopher Frost
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held a detrimental earnings call where he guided 2018 cash flow lower by 8-10% and announced a dividend cut of approximately 28%, causing a significant drop in Macquarie Infrastructure’s shares. As a result, the Fund’s underweight in the name was responsible for nearly all of the outperformance in the diversified sector.
Stock selection within gas utilities also contributed favorably, led by the Fund’s underweight position in Dominion Energy Inc., as well as its out-of-index positions in ENN Energy Holdings Limited and China Resources Gas Group Limited. Toward the end of 2017 and into the early part of the reporting period, Dominion took measures to improve its credit metrics including issuing equity and cutting back capital expenditures, and in doing so lessened its future earnings growth potential. On the other hand, two of the Fund’s strongest performers in absolute returns were out-of-index positions in Chinese firms ENN Energy Holdings Limited and China Resources Gas Group Limited. Shares for both advanced strongly as the companies continued to benefit from a sustained uptick in demand for natural gas in China. Volume growth is likely to be in the mid-teens for 2018, driven by the country’s highly supportive environmental policies and broader economic activity in the commercial and industrial sectors. Retail gas rates have increased, which has helped the more retail-focused names like ENN Energy. Additionally, China Resources’ financial performance has improved over the past year as gas sales margins have stabilized following late-2017 changes in government policy toward pricing and gas supply constraints that had negatively impacted volumes last winter.
The pipeline sector also contributed favorably to the Fund’s relative performance during the reporting period, mainly due to our lack of exposure to Brazilian storage and distribution company Ultrapar Participacoes S.A. The company’s shares dropped sharply due to ongoing higher inflation in Brazil, U.S. dollar strength, and most importantly, an investigation into three of the country’s biggest fuel distribution companies over price fixing allegations.
The electric utilities sector detracted the most from the Fund’s relative performance, due to our lack of exposure to several large benchmark constituents in the index. While rising interest rates often pose headwinds to lower growth/higher dividend yield sectors such as electric utilities, the lower volatility characteristics of their businesses helped the group perform better than most of the sectors within the infrastructure benchmark in the down market. The sector as a whole still produced a modestly negative return during the reporting period. As is typical for the Fund, we carried a much lower weight to the group that was nearly 50% less than the sector’s weight in the benchmark. We prefer a more diversified approach to infrastructure for the Fund; however, our underweight to several companies did negatively impact performance. In particular, the Fund’s lack of exposure to Exelon Corporation and Public Service Enterprise Group Inc. detracted. These less regulated companies displayed outperformance in an environment where commodity prices were generally higher. Over time, we have favored utilities with more regulated business mixes that tend to exhibit less volatility associated with swings in commodity prices.
The electric transmission sector detracted modestly from relative performance with the main laggard being the Fund’s out-of-index position in Australian company Spark Infrastructure Group Ltd. The company was under pressure from an anticipated regulatory review, which will likely decrease its allowable return. Spark Infrastructure’s previous rates were set at a time when interest rates were much higher and therefore, so too were its allowed returns. Also, the market’s anticipation of higher interest rates weighed on the stock. This backdrop proved to be detrimental because the review process will likely force a lower return on the company, even though company costs will likely move higher if rates increase. A stronger dollar also negatively impacted returns for Spark Infrastructure, as well as other non-U.S. holdings.
We continued to favor areas that can disproportionately benefit from ongoing economic growth trends relative to more defensive and interest rate sensitive sectors within infrastructure. We accomplished this through the Fund’s overweight positions in the technology infrastructure, waste, toll road and rail sectors, all of which were experiencing strong underlying fundamentals. The relative underweights that resulted from those allocations were found primarily within the electric and gas utility sectors where growth was somewhat scarce and increasing interest rates remained somewhat of a concern. The Fund has remained neutral to slightly underweight versus the benchmark in the energy space. While valuations appear more than fair, the outlook for further growth in the sector may be muted. We want exposure to the space, but given the uncertainties, do not expect to make a significant bet one way or the other aside from adhering to our preference of owning C-corps over MLPs. Uncertainty around the longevity of the MLP business models, corporate tax changes and the previously-mentioned FERC ruling has precluded us from overweighting the MLP area relative to benchmark.
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Portfolio Managers’ Comments (continued)
Geographically, we kept the portfolio well diversified. At the end of the reporting period, the Fund had broad exposure to more than 20 different countries because we prefer to spread our holdings out over many geographies and regulatory jurisdictions to mitigate risk. Within Europe, we favored France and Spain due to stronger economic growth, labor market reform, declining unemployment and improving regulatory environments. In the emerging markets, we ended the reporting period near the low end of our historical range due to ongoing political risk in some countries and more broadly currency risk. The United States continued to be the largest country by overall percentage, but remained a slight underweight relative to the benchmark.
Nuveen Global Real Estate Securities Fund
How did the Fund perform during the abbreviated reporting period from the Fund’s commencement of operations on March 20, 2018 through June 30, 2018?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the abbreviated since inception period ended June 30, 2018. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV underperformed the FTSE EPRA/NAREIT Developed Index TR (Total Return) and the new benchmark FTSE EPRA/NAREIT Developed Index NR (Net Return) and its Lipper classification Average during the abbreviated since inception reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks long-term capital appreciation with a secondary objective to provide current income. The Fund invests in income-producing equities of companies engaged in the real estate industry. Applying a fundamentally based, relative value process, the investment team diversifies across geographies and sectors of listed global commercial real estate by investing at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks, preferred securities and other equity securities issued by U.S. and non-U.S. companies in the real estate industry, including real estate investment trusts (REITs) and similar REIT-like entities. REITs are types of real estate companies that pool investors’ funds for investment in real estate or in real estate related loans or other interests. REITs in the U.S. are generally not taxed on income distributed to shareholders so long as they meet certain requirements of the Internal Revenue Code. Foreign REITs and REIT-like entities are organized outside of the U.S. and generally have operations and receive tax treatment in their respective countries similar to that of U.S. REITs, though some countries may have REIT-like structures that are significantly different from U.S. REITs or may not have adopted a REIT-like structure at all. Equity securities in which the Fund may invest may be of any market capitalization, including small- and mid-capitalization companies.
The Fund may invest at least 40% of its net assets in securities of non-U.S. issuers and, in any case, will invest at least 30% of its net assets in such issuers. The Fund will invest in securities of issuers in at least three different countries and may invest up to 25% of its total assets in securities of emerging market issuers.
The Fund may utilize derivatives, including options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts. The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
The Fund’s relative underperformance was partially attributable to short-term performance impacts related to the Fund’s invest-up period. During the abbreviated reporting period, office and diversified sectors were the top contributors to the Fund’s relative performance, while hotel C-corps, net lease and health care REITs detracted from performance.
The Fund’s leading contribution during the abbreviated reporting period came from favorable stock selection in the office sector. Within the sector, the Fund benefited the most from its position in Highwoods Properties, Inc. In the diversified sector the Fund benefited from its exposure to Mirvac Group and lack of exposure to Land Securities Group PLC, which is a large benchmark component.
In the health care REITs sector, an underweight position in large benchmark constituent Welltower, Inc. detracted from performance, while within the hotel C-corp sector, which is not represented in the benchmark, our ownership of Accor SA was a detractor.
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Country selection also had an impact on performance. Australia was the top country contributor, led by technology company, NEXTDC Limited, Australia’s leading independent data center outsourcing solutions, connectivity services and infrastructure management software company. Performance was negatively impacted by its exposure to the United States, specifically the large benchmark constituent within the health care REITs, Welltower, Inc.
Nuveen Real Asset Income Fund
How did the Fund perform during the six-month period ended June 30, 2018?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year, five-year and since inception periods ended June 30, 2018. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV underperformed both the old and the new Real Asset Income Blend benchmarks, the Lipper classification average and the Bloomberg Barclays U.S. Corporate High Yield Bond Index during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks a high level of current income with a secondary objective of capital appreciation by investing in a global portfolio of infrastructure and commercial real estate related securities (i.e. real assets) across the capital structure. These securities include a combination of infrastructure and real estate common stock, infrastructure and real estate preferred stock, and infrastructure and real estate related debt. Our goal is to combine these securities into a portfolio that provides investors with an attractive level of income and dampens levels of risk versus the broader equity market. We continued to select securities using an investment process that screens for companies and assets across the real assets market that provide higher yields. From the group of securities providing significant yields, we focus on owning those companies and securities with the highest total return potential in the Fund. Our process places a premium on finding securities whose revenues come from tangible assets with long-term concessions, contracts or leases and are therefore capable of producing steady, predictable and recurring cash flows. The Fund’s management team employs a bottom-up, fundamental approach to security selection and portfolio construction. We look for stable companies that demonstrate consistent and growing cash flow, strong balance sheets and histories of being good stewards of shareholder capital. Also during the reporting period, the Fund continued to short U.S. Treasury future contracts to hedge against interest rate risk within the high yield bond portfolio. We expanded the hedge program to include selling 10-year, 20-year and 30-year Treasury futures to better match the maturities of bonds within the high yield portfolio.
A healthy dose of volatility returned to the markets in 2018 with stocks suffering a sharp sell-off in February 2018 after investors feared the economy may overheat and drive up inflation, which would force the Federal Reserve (Fed) to raise interest rates more aggressively. By early March, however, stocks had recovered most of the losses only to plunge again by month end due to fears of a trade war between the U.S. and China and privacy concerns surrounding large technology bellwethers. Markets remained choppy throughout the reporting period end due to growing trade protectionism, other political uncertainties, rising interest rates and concerns surrounding the durability of the global economic expansion.
Three of the five “real asset” categories represented in the Real Asset Income Blend benchmark produced negative absolute returns during the reporting period. On the positive side, the public commercial real estate sector provided the strongest absolute returns during the reporting period, gaining 0.91% as measured by the FTSE EPRA/NAREIT Developed Index TR. The sector slightly outperformed the broader global equity markets, which advanced 0.43% as measured by the MSCI World Index, but significantly outpaced the infrastructure sector by almost 4%. However, the segment’s modestly positive return masked the significant volatility experienced by real estate investment trust (REIT) stocks within the six-month timeframe. After remaining fairly flat throughout 2017, the 10-year Treasury rate rose sharply from 2.44% at the beginning of 2018 to 2.90% by the end of February. This caused a correction in REIT prices during the first half of the reporting period as investors sought higher growth and less rate-sensitive investments to defend against the effects of higher interest rates in the U.S. In the second half of the reporting period, however, the sector made up all of the previously lost ground. Investors appeared to find value in REIT equities after their discounts to underlying NAV had widened so much due to a considerable period of underperformance. Following a very strong year for global infrastructure in 2017, the sector lost momentum at the beginning of 2018. The segment declined falling short of both REITs and global equities. Similar to the REIT sector, the dramatic increase in the 10-year U.S. Treasury yield caused investors to rotate away from the defensive infra-
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Portfolio Managers’ Comments (continued)
structure sector. As rates stabilized somewhat in the second half of the reporting period, infrastructure regained some of the ground it had lost versus broader global equities, but still ended the reporting period in the red. For the high yield sector, higher interest rates, increased equity volatility and uncertainty about global trade policy also caused an uptick in volatility at the beginning of the reporting period, pushing the index into negative territory. However, the sector recovered somewhat in the second half, resulting in basically flat results during the reporting period as measured by the 0.16% return of the Bloomberg Barclays U.S. Corporate High Yield Bond Index TR. The two preferred indexes within the Fund’s Custom Blended Benchmark showed significant dispersion with real estate outperforming infrastructure. The Wells Fargo Hybrid & Preferred Securities REIT Index fell 0.65% and the Bloomberg Barclays Global Capital Securities Index returned -4.89% for the reporting period.
The Fund continued to generate a consistent gross yield that remained above our overall yield hurdle, but underperformed its benchmarks and peer group. We attempt to add value versus the Real Asset Income Blend benchmark in two ways: by re-allocating money among five main security types when we see pockets of value at differing times and, more importantly, through individual security selection. The goal of this Fund is to provide a portfolio of securities with steady income and growth potential, while at the same time dampening risk, especially relative to global equity markets. During the reporting period, the infrastructure preferred, global infrastructure and REIT common equity sectors produced favorable results relative to the benchmark, whereas the REIT preferred and high yield sectors detracted.
The global infrastructure preferred sector was the biggest contributor to the Fund’s performance versus the benchmark. Within the segment, the Fund benefited the most from its lack of exposure to financials, which are a significant portion of the representative index. Given the real asset mandate of the portfolio, we focus only on infrastructure and real estate companies. These areas showed relative strength versus financials, an area that experienced negative returns during the reporting period. Within the infrastructure preferred portion of our portfolio, the Fund benefited from our out-of-index exposure to technology infrastructure, the only area with a positive return during the reporting period.
Global infrastructure equity also contributed favorably to the Fund’s performance versus the blended benchmark. The Fund’s positioning within energy infrastructure, especially midstream pipeline companies, was responsible for the majority of the outperformance. As noted above, defensive equities such as real estate and infrastructure were both under pressure at the beginning of the reporting period due to rising interest rates in the U.S., while energy shares also generally underperformed even in the face of increasing crude oil prices. The pipeline sector within the S&P Global Infrastructure Index was down as investors preferred to allocate capital elsewhere. While our underweight to the group added value as a result of the difficult absolute returns in the space, our security selection contributed even more in terms of relative outperformance. As volatility increased in the global marketplace and fundamentals across and within sectors diverged, security selection became more important. Within pipelines, the Fund’s weighted average return was strongly positive, which was a significant dispersion from the benchmark. An underweight to the toll road sector within the Fund’s infrastructure equity exposure also contributed to relative outperformance.
The real estate common equity segment was also a modest contributor to the Fund’s relative returns. One of the portfolio’s largest overweights, health care REITs, added the most value. The group provides a substantial opportunity set of companies with dividend yields that qualify for portfolio inclusion based on the primary objective of providing investors with income. Investment opportunities within the health care REIT area are also largely limited to the U.S., which helped both in absolute and relative terms given the strength of U.S. real estate over non-U.S. during the reporting period. The companies in the portfolio with skilled nursing assets performed especially well as they were given a boost when a more favorable reimbursement system was announced with better-than-expected rates for Fiscal 2019.
The REIT preferred equity segment was the primary detractor to the Fund’s relative results versus its benchmark. Self-storage preferreds performed well in relative terms, declining less than most other REIT preferred sectors as rates rose at the beginning of 2018. However, the Fund’s largest underweight was in this group in terms of the major sub-property types in the index. We had actually increased our underweight after the segment’s strong absolute performance in 2017 and based on some concerns about potential increases in supply. However, the group appeared to be a little less interest rate sensitive, giving up less in absolute terms than the REIT preferred segment in general. Therefore, our underweight to the self-storage segment detracted from the Fund’s return when measured against the index.
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The high yield debt portion of the portfolio also modestly hindered performance, but no individual sectors were standouts in terms of negative attribution. The high yield market continued to outperform other fixed income classes during the reporting period; however, it was not immune to credit spread volatility caused by fluctuating Treasury rates, fears regarding a trade war and weakness in emerging markets. Solid global growth conditions kept fundamentals firm for the high yield asset class, while the segment also continued to benefit from a strong technical backdrop. Net new issuance for high yield bonds during the reporting period ran about 30% lower than last year, and the excess amount of cash coming in the form of coupons, calls and maturities far outpaced the volume of new issuance. High yield spreads meanwhile, continued to vacillate based on the whims of the Treasury market and sentiment over the potential for an escalation in trade war talks. Spreads versus Treasuries ended the reporting period wider than where they started, but traded as tight as 335 basis points in mid-April 2018. Lower quality issues (CCCs) saw their spreads tighten during the reporting period based on improving fundamentals and less sensitivity to interest rates, while spreads widened for both the single B and BB segments. Within our debt portfolio, we had a bias toward quality relative to the benchmark so the outperformance of lower quality issues negatively impacted our relative returns.
We continued to actively manage the Fund’s allocations among the five investment categories to reflect what we believed to be the best opportunities in our investment universe. In aggregate, the portfolio remained underweight to equities throughout the reporting period, but within that positioning, we remained slightly overweight to real estate and underweight to infrastructure relative to our expected long-term target weights. These allocations were driven mostly by valuation given the persistent previous underperformance of REITs, especially in the U.S., which had caused the group to trade at significant discounts to underlying NAVs. During the reporting period, REITs made up some of their lost ground and validated our investment thesis.
The Fund’s portfolio remained overweight in the preferred segment and within that category, we emphasized infrastructure preferreds over real estate preferreds. This was not only the result of attractive valuations but also our ability to find less interest rate sensitive structures such as fixed-to-floating rate hybrid securities within the infrastructure universe, which are largely absent in the REIT sector.
The Fund’s fixed income exposure was relatively neutral versus the benchmark during the reporting period. However, the composition of the debt portfolio remained higher in quality relative to historic ranges as we continued to find more value in higher quality issues relative to the benchmark given the tight credit spreads. We continued to find opportunities to invest in a number of attractive bonds with stable cash flows and minimal exposure to volatile commodity prices. We maintained a geographic representation in the debt portfolio that was similar to the equity and preferred categories. And similar to the preferred segment, utilities and pipeline infrastructure holdings remained the largest sectors in the debt portion of the portfolio at the end of the reporting period.
As mentioned previously, the Fund shorted U.S. Treasury futures contracts to hedge against potential increases in interest rates. The contracts had a positive effect on the Fund’s performance during the reporting period.
Nuveen Real Estate Securities Fund
How did the Fund perform during the six-month period ended June 30, 2018?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year, five-year, ten-year and/or since inception periods ended June 30, 2018. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV underperformed the MSCI U.S. REIT Index, but outperformed the Lipper classification average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks to provide above average income potential and long-term capital appreciation by investing in income producing common stocks of publicly traded companies engaged in the real estate industry. During the reporting period, we continued to implement the Fund’s strategy of investing on a relative value basis with a focus on individual stocks rather than economic or market cycles. We also continued to invest the Fund in a fairly sector neutral manner (with a couple of notable exceptions within the industrial, office, health care and net lease sectors) with a goal of providing a well-diversified portfolio of public real estate stocks to our shareholders. A sector neutral approach reduces the impact of any one property type on performance. Additionally, we
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Portfolio Managers’ Comments (continued)
continued to invest in a broader universe of stocks than our benchmark index to access more dynamic parts of the commercial real estate cycle.
During the six-month reporting period, the public commercial real estate sector returned 1.19% (MSCI U.S. REIT Index). However, the segment’s modestly positive return masked the significant volatility experienced by real estate investment trusts (REITs) during the reporting period. After remaining fairly flat throughout 2017, the 10-year Treasury rate rose sharply from 2.44% at the beginning of 2018 to 2.90% by the end of February. This caused a correction in REIT prices during the first half of the reporting period as investors sought higher growth and less rate-sensitive investments to defend against the effects of higher interest rates in the U.S. In particular, retail real estate, including the community center, regional mall and net lease segments, suffered some of the largest double-digit declines. Additional store closing announcements, headlined by the Toys ‘R’ Us liquidation filing, continued to weigh on investor sentiment for brick-and-mortar retailing, given the disruption from ecommerce and the decline in demand for physical commercial property. REIT sectors with stronger underlying net operating income growth and reasonably constrained supply such as industrial and manufactured homes held up better, as did sectors with shorter lease durations, which are typically a little less interest rate sensitive, such as multi-family, lodging and self-storage. By the end of March 2018, REITs were trading at substantial discounts to underlying NAV because of the segment’s sharp decline and persistent underperformance relative to broader equities.
In the second half of the reporting period, however, the public commercial real estate sector completely reversed course and substantially outperformed U.S. equities. The catalysts for the REIT price rally were attractive valuations that piqued investor interest, merger and acquisition (M&A) activity and a relatively benign interest rate environment. The REIT segment experienced substantial upward momentum with the community center, regional mall and net lease segments reversing course and showing significant strength. Apart from the Toys ‘R’ Us liquidation filing, store closings slowed relative to 2017, which provided some support to the retail areas of commercial real estate. In most real estate sectors, occupancy remained high and ongoing economic strength and job growth kept pricing power in the hands of landlords, who continued to raise rents as previously signed leases expired.
The Fund’s leading contribution during the reporting period came from favorable stock selection in the office sector. Office fundamentals remained mixed across the country despite low unemployment levels, partially due to new supply in certain markets as well as the continuation of densification trends where less square footage is allotted per employee. Many of the West Coast markets, particularly San Francisco, Seattle and Los Angeles, as well as some in the Southeast/Sunbelt showed the healthiest population and employment growth. Conversely, economics in New York remained somewhat challenged, especially in light of the amount of new supply that has entered the market. Washington D.C. market conditions varied widely by submarket, but overall it too felt the impact of new supply including renovated capital stock. Within the sector, the Fund benefited the most from an overweight position in Hudson Pacific Properties Inc., whose shares held up significantly better than the office sector as well as the overall REIT index. The company went through balance sheet repositioning by terming out some of its debt, which provided more certainty about interest costs moving forward. Additionally, the market anticipated more clarity on the lease-up of its Silicon Valley assets with recent reports seeming to show better activity in this market. We continue to like Hudson Pacific based on the company’s projected above-average growth rate for 2019, which may serve as a catalyst for the shares.
The diversified sector was the second leading contributor to the Fund’s relative returns, driven almost exclusively by our lack of exposure to Colony Capital Inc. (formerly called Colony NorthStar until June 25, 2018). While diversified is a small overall weight within the benchmark, the sector was by far its worst performer, falling more than 20% during the reporting period. The decline in the sector was driven by Colony’s significant share price decline. When the company announced fourth-quarter earnings, it cut the quarterly dividend by 59% and acknowledged ongoing weakness in its health care and hospitality segments.
In the technology infrastructure sector, which includes companies in the data center and cellular tower businesses, the Fund benefited from favorable stock selection. We maintained an overweight in the sector throughout the reporting period due to continued strength in the underlying fundamentals. The technology infrastructure sector is also supported by the demand for facilities to support consumer and corporate data usage and processing, which continues to outpace available supply leading to stronger cash flow growth dynamics than most other real estate sectors. Within that secular thesis, our favored name in the cellular tower industry was American Tower Corporation. We believed this company was the most attractive based on valuation relative to its peer group. American Tower also possesses a portfolio of towers that has more international exposure than its domestic counterparts, which provides the company with a higher potential growth rate. During a reporting period where most of its peers posted negative returns, American Tower’s shares were actually up due to a number of factors. In late February, the company reported solid fourth-
12
quarter earnings with adjusted funds from operations (FFO) up 8% on a year-over-year basis, followed by an increase to its quarterly dividend. Given our conviction in the company and the fact that it is not a benchmark constituent, its outperformance was a positive contributor.
Finally, the industrial sector also contributed favorably to the Fund’s relative returns, driven mostly by our overweights to Duke Realty Corporation and First Industrial Realty Trust. The companies saw their share prices advance more than the industrial sector and significantly more than the overall benchmark. Both Duke Realty and First Industrial continued to benefit from very strong underlying fundamentals driven by the secular ecommerce trends and a surprising lack of supply. Industrial remains one of the few sectors that trades at a premium to underlying NAV due to stronger-than-average net operating income (NOI) growth and continued capitalization rate compression as evidenced by property transactions. M&A activity within the space has also provided strength for the group. The companies benefited from these major themes as well as continuing declines in industrial cap rates, indicating strength in underlying property prices heading into the reporting period, which investors favored.
The leading detractor to the Fund’s performance relative to its benchmark came from the hotel REIT sector. Hotels are the most economically sensitive sector within real estate and often demonstrate less interest rate sensitivity than many other property types because revenues aren’t subject to long-term leases, given that hotels can price rooms daily. In a period where U.S. interest rates moved higher and economic growth persisted, hotels offered some protection and the Fund’s underweight to the sector hindered its relative performance. Within the group, our lack of exposure to Ryman Hospitality Properties Inc. detracted the most because the company’s shares advanced significantly. Ryman Hospitality benefited from execution on some of its company-specific growth initiatives and from improved group and corporate bookings.
The health care REIT sector also detracted relative to the benchmark due to stock selection issues in the group. Health care REITs were hampered by a mix of fundamental issues such as lower year-over-year senior housing earnings growth, tenant concerns in skilled nursing, slower external growth in medical office, and a fear of rising interest rates, which more adversely impacts this longer duration sector. However, companies with exposure to skilled nursing got a boost during this reporting period when a more favorable reimbursement system was announced with better-than-expected rates for 2019. The Fund was hurt by its lack of exposure to Omega Healthcare Investors, Inc. and Quality Care Properties, Inc., which are both focused on skilled nursing and were helped by this ruling. Additionally, Quality Care’s shares were given an additional boost after Welltower Inc. announced its intended purchase of the company at the end of April. Although investors viewed this transaction very favorably, we were a bit more skeptical.
In the hotel C-corp sector, which is not represented in the benchmark, the Fund’s ownership of Marriott International Inc. detracted in relative terms. The company trades at a premium valuation to peers based on its quality, and also has greater international exposure than its peers. Marriott is closely tied to the broader economy; therefore, we believe the potential trade war, which could negatively impact economic growth, weighed on its shares.
Finally, the self-storage sector modestly detracted from relative performance in large part due to the Fund’s underweight to the overall group and particularly Extra Space Storage Inc. Heading into 2018, concerns about oversupply tempered our optimism about the self-storage space, along with decelerating momentum in net operating income growth. We expected these softening fundamentals to potentially impact the group as a whole and chose to underweight Extra Space Storage relative to its competitors based on valuation. However, given the interest rate increase early in the year, the shorter-term lease structures inherent in the self-storage sector caused these companies to hold up better than most other real estate sectors.
In terms of changes during the reporting period, we maintained our slight biases to large cap over small cap and high quality over lower quality, which was reflected in the Fund’s focus on core/high-conviction names, especially within the mall sector. In general terms, this positioning caused much of the Fund’s underperformance relative to the benchmark. While the quality bias in the portfolio led to substantial outperformance in the first three months of the year, lower quality, more heavily shorted names performed the best in the second half of the reporting period. We also favored companies that retain more cash flow to reinvest in their businesses, which can provide higher potential growth relative to those that distribute the cash flow via dividends. As a result, the Fund’s dividend yield was slightly below that of the benchmark. We continued to overweight the technology infrastructure, industrial and manufactured home sectors, which still exhibited the strongest fundamentals and potential earnings growth among the various property types.
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Risk Considerations and Dividend Information
Risk Considerations
Nuveen Global Infrastructure Fund
Mutual fund investing involves risk; principal loss is possible. Concentration in infrastructure-related securities involves sector risk and concentration risk, particularly greater exposure to adverse economic, regulatory, political, legal, liquidity, and tax risks associated with master limited partnerships (MLPs) and real estate investment trusts (REITS). Foreign investments involve additional risks including currency fluctuations and economic and political instability. These risks are magnified in emerging markets. Common stocks are subject to market risk or the risk of decline. Small- and mid-cap stocks are subject to greater price volatility. The use of derivatives involves substantial financial risks and transaction costs. The Fund’s potential investment in other investment companies means shareholders bear their proportionate share of fund expenses and indirectly, the expenses of other investment companies. Fund investments in exchange trade funds (ETFs) may involve tracking error. Preferred securities may involve greater credit risk than other debt instruments.
Nuveen Global Real Estate Securities Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. The real estate industry is greatly affected by economic downturns or by changes in real estate values, rents, property taxes, interest rates, tax treatment, regulations, or the legal structure of the REIT. Prices of equity securities may decline significantly over short or extended periods of time. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as active management, derivatives, preferred security, and, small and mid-cap risks, are described in detail in the Fund’s prospectus.
Nuveen Real Asset Income Fund
Mutual fund investing involves risk; principal loss is possible. Equity investments such as those held by the Fund are subject to market risk, call risk, derivatives risk, other investment companies risk, common stock risk, and tax risks associated with master limited partnerships (MLPs). Concentration in specific sectors may involve greater risk and volatility than more diversified investments: real estate sector involves the risk of exposure to economic downturns and changes in real estate values, rents, property taxes, interest rates and tax laws; infrastructure-related securities may involve greater exposure to adverse economic, regulatory, political, legal, and other changes affecting such securities. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity, and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. In addition, the Fund will bear its proportionate share of any fees and expenses paid by the exchange trade funds (ETFs) in which it invests.
Debt or fixed income securities such as those held by the Fund are subject to market risk, credit risk, interest rate risk and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure and therefore are subject to greater credit risk. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Real Estate Securities Fund
Mutual fund investing involves risk; principal loss is possible. Common stocks and REITs such as those held in the Fund involve market risk, concentration risk, sector risk, and non-diversification risk. The real estate industry is greatly affected by economic downturns that may persist as well as changes in property values, taxes, and regulatory developments. Foreign investments involve additional risks including currency fluctuations, and economic or political instability. These risks are magnified in emerging markets. The use of derivatives involves substantial financial risks and transaction costs. Small cap stocks may experience more volatility than large cap stocks.
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Dividend Information
Regular dividends are declared and distributed annually for Nuveen Global Infrastructure Fund, declared daily and distributed monthly for Nuveen Real Asset Income Fund and declared and distributed quarterly for Nuveen Global Real Estate Securities Fund and Nuveen Real Estate Securities Fund. To permit a Fund to maintain a more stable dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income it actually earned during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if the Fund has cumulatively paid out dividends more than it has earned, the excess will constitute negative UNII that will likewise be reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders.
In certain instances, a portion of each Fund’s distributions may be paid from sources or comprised of elements other than ordinary income, including capital gains and/or a return of capital. This is generally due to the fact that 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 real estate investment trust (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 typically reports the tax character of its distributions only once per year, generally during the first two months of the following calendar year. The full amount of the distributions received from such securities is included in the Fund’s ordinary income during the course of the year until such time the Fund is notified by the issuer of the actual tax character. To the extent that at the time of a particular distribution the Fund estimates that a portion of that distribution is attributable to a source or sources other than ordinary income, the Fund would send shareholders a notice to that effect. The final determination of the sources and tax character of all distributions for the fiscal year is made after the end of the fiscal year.
Additional Dividend Information for Nuveen Real Asset Income Fund and Nuveen Real Estate Securities Fund
Nuveen Real Asset Income Fund and Nuveen Real Estate Securities Fund seek to pay regular dividends at a rate that reflects the cash flow received from each Fund’s investments in portfolio securities. Fund distributions are not intended to include expected portfolio appreciation; however, the Funds invest in securities that make payments which ultimately may be fully or partially characterized for tax purposes by the securities’ issuers as gains or return of capital. While the reported sources of distributions may include capital gains and/or return of capital for tax purposes, the Funds intend to distribute only the net cash flow received as opposed to a distribution rate based on long-term total return. This tax treatment will generally “flow through” to the Funds’ distributions, but the specific tax treatment is often not known with certainty until after the end of the Funds’ tax year. As a result, certain portions of the regular distributions by these two Funds throughout the year were later re-characterized for tax purposes as either long-term gains (both realized and unrealized), or as a non-taxable return of capital, as set forth in each Fund’s table below.
Nuveen Real Asset Income Fund – Data as of June 30, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Calendar Year 2018 | |
| | | | | Estimated Percentage of the Distribution | | | Estimated Per Share Amounts | |
| Share Class | | Ticker Symbol | | Net
Investment
Income | | | Realized
Gains | | | Return of
Capital | | | Distributions | | | Net
Investment
Income | | | Realized
Gains | | | Return of
Capital | |
Class A | | NRIAX | | | 98.8% | | | | 0.0% | | | | 1.2% | | | $ | 0.5940 | | | $ | 0.5866 | | | $ | 0.0000 | | | $ | 0.0074 | |
Class C | | NRICX | | | 98.9% | | | | 0.0% | | | | 1.1% | | | $ | 0.5050 | | | $ | 0.4993 | | | $ | 0.0000 | | | $ | 0.0057 | |
Class R6 | | NRIFX | | | 100.0% | | | | 0.0% | | | | 0.0% | | | $ | 0.6270 | | | $ | 0.6270 | | | $ | 0.0000 | | | $ | 0.0000 | |
Class I | | NRIIX | | | 98.9% | | | | 0.0% | | | | 1.1% | | | $ | 0.6240 | | | $ | 0.6171 | | | $ | 0.0000 | | | $ | 0.0069 | |
Class T | | NRITX | | | 100.0% | | | | 0.0% | | | | 0.0% | | | $ | 0.5940 | | | $ | 0.5940 | | | $ | 0.0000 | | | $ | 0.0000 | |
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Risk Considerations and Dividend Information (continued)
Nuveen Real Estate Securities Fund – Data as of June 30, 2018(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Calendar Year 2018 | |
| | | | | Estimated Percentage of the Distribution | | | Estimated Per Share Amounts | |
| Share Class | | Ticker Symbol | | Net
Investment
Income | | | Realized
Gains | | | Return of
Capital | | | Distributions | | | Net
Investment
Income | | | Realized
Gains | | | Return of
Capital | |
Class A | | FREAX | | | 61.5% | | | | 0.0% | | | | 38.5% | | | $ | 0.2326 | | | $ | 0.1430 | | | $ | 0.0000 | | | $ | 0.0896 | |
Class C | | FRLCX | | | 43.4% | | | | 0.0% | | | | 56.6% | | | $ | 0.1566 | | | $ | 0.0680 | | | $ | 0.0000 | | | $ | 0.0886 | |
Class R3 | | FRSSX | | | 56.5% | | | | 0.0% | | | | 43.5% | | | $ | 0.2122 | | | $ | 0.1199 | | | $ | 0.0000 | | | $ | 0.0923 | |
Class R6 | | FREGX | | | 74.4% | | | | 0.0% | | | | 25.6% | | | $ | 0.2630 | | | $ | 0.1957 | | | $ | 0.0000 | | | $ | 0.0673 | |
Class I | | FARCX | | | 65.0% | | | | 0.0% | | | | 35.0% | | | $ | 0.2605 | | | $ | 0.1694 | | | $ | 0.0000 | | | $ | 0.0911 | |
Class T | | FRYTX | | | 58.4% | | | | 0.0% | | | | 41.6% | | | $ | 0.2364 | | | $ | 0.1380 | | | $ | 0.0000 | | | $ | 0.0984 | |
| (1) | The Fund owns REIT securities which attribute their distributions to various sources, including net investment income, gains and return of capital. |
These estimates should not be used for tax reporting purposes, and the distribution sources may differ for financial reporting than for tax reporting. The final determination of the tax characteristics of all distributions paid in 2018 will be made in early 2019 and reported to you on Form 1099-DIV. More details about each Fund’s distributions and the basis for these estimates are available on www.nuveen.com.
The Tax Cuts and Jobs Act
A large portion of the Funds’ portfolio holdings consist of Real Estate Investment Trusts (REITs). For tax years beginning after December 31, 2017, The Tax Cuts and Jobs Act generally would allow a non-corporate taxpayer a deduction of 20% of the investor’s domestic qualified business income received from certain pass-through entities, including REITs. However, Regulated Investment Companies (RICs) such as the Funds are not explicitly given the ability to pass the deduction through to their non-corporate shareholders. Treasury has been approached to provide RICs the ability to report a portion of their distributions as qualified business income eligible for the 20% deduction. However, until such relief is provided, non-corporate investors will not be able to receive the tax benefit that they would otherwise receive investing directly in the individual REIT securities.
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Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown within this section of the report.
Returns quoted represent past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns for a period of less than one year are not annualized. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at NAV only.
The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any) as shown in the most recent prospectus. The expense ratios include management fees and other fees and expenses.
Effective July 2018, subsequent to the close of the reporting period, Class C Shares will automatically convert to Class A Shares after 10 years. Conversions will occur during the month in which the 10-year anniversary of the purchase occurs. Class C Shares that have been held for longer than 10 years as of July 1, 2018 will also convert to Class A Shares in July 2018. The automatic conversion will be based on the relative net asset values of the two share classes without the imposition of a sales charge or fee. The automatic conversion of Class C Shares to Class A Shares will not apply to shares held through group retirement plan recordkeeping platforms of certain financial intermediaries who hold such shares in an omnibus account and do not track participant level share lot aging to facilitate such a conversion.
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Fund Performance and Expense Ratios (continued)
Nuveen Global Infrastructure Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of June 30, 2018
| | | | | | | | | | | | | | | | |
| | | Cumulative | | | Average Annual | |
| | | 6-Month | | | 1-Year | | | 5-Year | | | 10-Year | |
Class A Shares at NAV | | | (2.38)% | | | | 2.29% | | | | 7.99% | | | | 6.36% | |
Class A Shares at maximum Offering Price | | | (8.02)% | | | | (3.56)% | | | | 6.71% | | | | 5.73% | |
S&P Global Infrastructure Index TR (old benchmark) | | | (3.06)% | | | | 1.82% | | | | 8.04% | | | | 4.06% | |
S&P Global Infrastructure Index NR (new benchmark) | | | (3.58)% | | | | 0.87% | | | | 7.13% | | | | 3.14% | |
Lipper Global Infrastructure Funds Classification Average | | | (2.52)% | | | | 2.06% | | | | 6.66% | | | | 4.53% | |
| | | | |
Class I Shares | | | (2.20)% | | | | 2.63% | | | | 8.27% | | | | 6.63% | |
| | |
| | | Cumulative | | | Average Annual | |
| | | 6-Month | | | 1-Year | | | 5-Year | | | Since
Inception | |
Class C Shares | | | (2.76)% | | | | 1.55% | | | | 7.18% | | | | 9.95% | |
Class R3 Shares | | | (2.52)% | | | | 2.04% | | | | 7.72% | | | | 10.44% | |
Class R6 Shares | | | (2.20)% | | | | 2.82% | | | | N/A | | | | 5.51% | |
Class T Shares* | | | (2.39)% | | | | 2.37% | | | | N/A | | | | 1.93% | |
Class T Shares at maximum Offering Price* | | | (4.83)% | | | | (0.17)% | | | | N/A | | | | (0.40)% | |
Since inception returns for Class C Shares and Class R3 Shares are from 11/03/08; since inception return for Class R6 Shares is from 6/30/16; since inception returns for Class T Shares are from 5/31/17. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Class T Shares have a maximum 2.50% sales charge (Offering Price).
Expense Ratios as of Most Recent Prospectus
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R3 | | | Class R6 | | | Class I | | | Class T* | |
Gross Expense Ratios | | | 1.42% | | | | 2.17% | | | | 1.67% | | | | 1.02% | | | | 1.17% | | | | 1.44% | |
Net Expense Ratios | | | 1.22% | | | | 1.97% | | | | 1.47% | | | | 0.80% | | | | 0.97% | | | | 1.22% | |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 1.00% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for Class R6 Shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund.
| * | Class T shares are not available for public offering. |
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Nuveen Global Real Estate Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Cumulative Total Returns as of June 30, 2018
| | | | |
| | | Cumulative | |
| | | Since
Inception | |
Class A Shares at NAV | | | 4.09% | |
Class A Shares at maximum Offering Price | | | (1.90)% | |
FTSE EPRA/NAREIT Developed Index TR (old benchmark) | | | 5.79% | |
FTSE EPRA/NAREIT Developed Index NR (new benchmark) | | | 5.35% | |
Lipper Global Real Estate Funds Classification Average | | | 4.38% | |
| |
Class C Shares | | | 3.85% | |
Class R6 Shares | | | 4.15% | |
Class I Shares | | | 4.15% | |
Since inception returns for Class A Shares, Class C Shares, Class R6 and Class I Shares, and the index and Lipper average, are from 3/20/18. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R6 | | | Class I | |
Gross Expense Ratios | | | 1.74% | | | | 2.49% | | | | 1.43% | | | | 1.49% | |
Net Expense Ratios | | | 1.34% | | | | 2.09% | | | | 1.03% | | | | 1.09% | |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2021 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 1.09% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for Class R6 Shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to that date only with the approval of the Board of Trustees of the Fund.
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Fund Performance and Expense Ratios (continued)
Nuveen Real Asset Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of June 30, 2018
| | | | | | | | | | | | | | | | |
| | | Cumulative | | | Average Annual | |
| | | 6-Month | | | 1-Year | | | 5-Year | | | Since
Inception | |
Class A Shares at NAV | | | (1.88)% | | | | 1.74% | | | | 6.69% | | | | 8.36% | |
Class A Shares at maximum Offering Price | | | (7.52)% | | | | (4.11)% | | | | 5.43% | | | | 7.42% | |
Bloomberg Barclays U.S. Corporate High Yield Bond Index | | | 0.16% | | | | 2.62% | | | | 5.51% | | | | 7.09% | |
Real Asset Income Blend (old benchmark) | | | (1.44)% | | | | 2.93% | | | | 6.66% | | | | 8.20% | |
Real Asset Income Blend (new benchmark) | | | (1.70)% | | | | 2.44% | | | | 6.21% | | | | 7.75% | |
Lipper Global Flexible Portfolio Funds Classification Average | | | (0.70)% | | | | 5.43% | | | | 5.26% | | | | 6.36% | |
| | | | |
Class C Shares | | | (2.25)% | | | | 0.98% | | | | 5.90% | | | | 7.56% | |
Class I Shares | | | (1.75)% | | | | 2.00% | | | | 6.95% | | | | 8.63% | |
| | | | | | | | | | | | | | | | |
| | | Cumulative | | | | | | Average Annual | |
| | | 6-Month | | | | | | 1-Year | | | Since
Inception | |
Class R6 Shares | | | (1.77)% | | | | | | | | 2.06% | | | | 4.87% | |
Class T Shares* | | | (1.88)% | | | | | | | | 1.74% | | | | 2.51% | |
Class T Shares at maximum Offering Price* | | | (4.33)% | | | | | | | | (0.80)% | | | | 0.14% | |
Since inception returns for Class A Shares, Class C Shares and Class I Shares, and the index and Lipper average, are from 9/13/11; since inception return for Class R6 Shares is from 6/30/16; since inception returns for Class T shares are from 5/31/17. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Class T Shares have a maximum 2.50% sales charge (Offering Price).
Expense Ratios as of Most Recent Prospectus
| | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R6 | | | Class I | | | Class T* | |
Expense Ratios | | | 1.15% | | | | 1.90% | | | | 0.81% | | | | 0.90% | | | | 1.16% | |
| * | Class T shares are not available for public offering. |
20
Nuveen Real Estate Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of June 30, 2018
| | | | | | | | | | | | | | | | |
| | | Cumulative | | | Average Annual | |
| | | 6-Month | | | 1-Year | | | 5-Year | | | 10-Year | |
Class A Shares at NAV | | | 0.30% | | | | 3.09% | | | | 7.95% | | | | 8.27% | |
Class A Shares at maximum Offering Price | | | (5.44)% | | | | (2.85)% | | | | 6.68% | | | | 7.63% | |
MSCI U.S. REIT Index | | | 1.19% | | | | 3.57% | | | | 8.26% | | | | 7.95% | |
Lipper Real Estate Funds Classification Average | | | 0.22% | | | | 3.18% | | | | 7.49% | | | | 7.25% | |
| | | | |
Class C Shares | | | (0.04)% | | | | 2.35% | | | | 7.15% | | | | 7.47% | |
Class R3 Shares | | | 0.20% | | | | 2.83% | | | | 7.69% | | | | 8.00% | |
Class I Shares | | | 0.49% | | | | 3.34% | | | | 8.23% | | | | 8.54% | |
| | | | | | | | | | | | | | | | |
| | | Cumulative | | | Average Annual | |
| | | 6-Month | | | 1-Year | | | 5-Year | | | Since
Inception | |
Class R6 Shares | | | 0.55% | | | | 3.53% | | | | 8.41% | | | | 6.47% | |
Class T Shares* | | | 0.32% | | | | 3.09% | | | | N/A | | | | 4.61% | |
Class T Shares at maximum Offering Price* | | | (2.20)% | | | | 0.53% | | | | N/A | | | | 2.18% | |
Since inception return for Class R6 Shares is from 4/30/13. Since Inception returns for Class T Shares are from 5/31/17. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Class T Shares have a maximum 2.50% sales charge (Offering Price).
Expense Ratios as of Most Recent Prospectus
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R3 | | | Class R6 | | | Class I | | | Class T* | |
Expense Ratios | | | 1.29% | | | | 2.04% | | | | 1.54% | | | | 0.87% | | | | 1.04% | | | | 1.28% | |
| * | Class T shares are not available for public offering. |
21
Holding Summaries as of June 30, 2018
This data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Nuveen Global Infrastructure Fund
Fund Allocation
(% of net assets)
| | | | |
Common Stocks | | | 93.7% | |
Real Estate Investment Trust Common Stocks | | | 3.5% | |
Investment Companies | | | 0.5% | |
Repurchase Agreements | | | 1.0% | |
Other Assets Less Liabilities | | | 1.3% | |
Net Assets | | | 100% | |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings
(% of net assets)
| | | | |
Transurban Group | | | 4.8% | |
Enbridge Inc. | | | 4.1% | |
Aena S.A. | | | 3.5% | |
Vinci S.A. | | | 3.5% | |
Atlantia SpA | | | 3.3% | |
Portfolio Composition
(% of net assets)
| | | | |
Transportation Infrastructure | | | 27.4% | |
Electric Utilities | | | 20.2% | |
Oil, Gas & Consumable Fuels | | | 18.8% | |
Multi-Utilities | | | 7.4% | |
Construction & Engineering | | | 6.1% | |
Other | | | 17.3% | |
Repurchase Agreements | | | 1.0% | |
Investment Companies | | | 0.5% | |
Other Assets Less Liabilities | | | 1.3% | |
Net Assets | | | 100% | |
Country Allocation1
(% of net assets)
| | | | |
United States | | | 36.4% | |
Canada | | | 10.1% | |
France | | | 10.0% | |
Australia | | | 9.8% | |
Spain | | | 8.1% | |
Italy | | | 6.4% | |
Switzerland | | | 2.2% | |
New Zealand | | | 2.2% | |
Germany | | | 2.1% | |
Singapore | | | 2.0% | |
China | | | 1.9% | |
Other | | | 7.5% | |
Other Assets Less Liabilities | | | 1.3% | |
Net Assets | | | 100% | |
| 1 | Includes 4.5% (as a percentage of net assets) in emerging market countries. |
22
Nuveen Global Real Estate Securities Fund
Fund Allocation
(% of net assets)
| | | | |
Real Estate Investment Trust Common Stocks | | | 71.7% | |
Common Stocks | | | 25.8% | |
Other Assets Less Liabilities | | | 2.5% | |
Net Assets | | | 100% | |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings
(% of net assets)
| | | | |
Simon Property Group, Inc. | | | 3.1% | |
Vonovia SE | | | 3.1% | |
Sumitomo Realty & Development Company Limited | | | 2.4% | |
Prologis Inc. | | | 2.3% | |
CK Asset Holdings Ltd | | | 2.1% | |
Portfolio Composition
(% of net assets)
| | | | |
Real Estate Management & Development | | | 21.0% | |
Industrial | | | 12.7% | |
Retail | | | 12.2% | |
Office | | | 10.2% | |
Residential | | | 10.1% | |
Diversified | | | 9.5% | |
Specialized | | | 8.4% | |
Other | | | 13.4% | |
Other Assets Less Liabilities | | | 2.5% | |
Net Assets | | | 100% | |
Country Allocation1
(% of net assets)
| | | | |
United States | | | 46.9% | |
Japan | | | 11.2% | |
Hong Kong | | | 6.6% | |
Germany | | | 5.6% | |
United Kingdom | | | 4.4% | |
Canada | | | 4.0% | |
Australia | | | 3.7% | |
France | | | 3.5% | |
Singapore | | | 3.4% | |
Spain | | | 2.0% | |
Sweden | | | 2.0% | |
Other | | | 4.2% | |
Other Assets Less Liabilities | | | 2.5% | |
Net Assets | | | 100% | |
| 1 | Includes 0.9% (as a percentage of net assets) in emerging market countries. |
23
Holding Summaries as of June 30, 2018 (continued)
Nuveen Real Asset Income Fund
Fund Allocation
(% of net assets)
| | | | |
Real Estate Investment Trust Common Stocks | | | 23.1% | |
$25 Par (or similar) Retail Preferred | | | 17.9% | |
Common Stocks | | | 17.1% | |
$1,000 Par (or similar) Institutional Preferred | | | 16.6% | |
Corporate Bonds | | | 14.5% | |
Convertible Preferred Securities | | | 4.1% | |
Variable Rate Senior Loan Interests | | | 2.7% | |
Convertible Bonds | | | 0.9% | |
Investment Companies | | | 0.8% | |
Sovereign Debt | | | 0.2% | |
Repurchase Agreements | | | 2.3% | |
Other Assets Less Liabilities | | | (0.2)% | |
Net Assets | | | 100% | |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings
(% of net assets)
| | | | |
Spark Infrastructure Group | | | 1.3% | |
STAG Industrial Inc. | | | 1.3% | |
Mapletree Logistics Trust | | | 1.0% | |
Ventas Inc. | | | 0.9% | |
ONEOK, Inc. | | | 0.9% | |
Portfolio Composition
(% of net assets)
| | | | |
Electric Utilities | | | 17.2% | |
Oil, Gas & Consumable Fuels | | | 15.5% | |
Equity Real Estate Investment Trusts | | | 14.6% | |
Multi-Utilities | | | 6.2% | |
Industrial | | | 5.9% | |
Health Care | | | 4.3% | |
Real Estate Management & Development | | | 3.6% | |
Diversified | | | 3.2% | |
Retail | | | 3.1% | |
Energy Equipment & Services | | | 2.4% | |
Gas Utilities | | | 2.1% | |
Other | | | 18.8% | |
Repurchase Agreements | | | 2.3% | |
Investment Companies | | | 0.8% | |
Sovereign Debt | | | 0.2% | |
Other Assets Less Liabilities | | | (0.2)% | |
Net Assets | | | 100% | |
Country Allocation1
(% of net assets)
| | | | |
United States | | | 57.0% | |
Canada | | | 14.3% | |
Singapore | | | 5.2% | |
Australia | | | 3.3% | |
Italy | | | 3.0% | |
United Kingdom | | | 2.4% | |
France | | | 2.3% | |
Hong Kong | | | 1.9% | |
Germany | | | 1.3% | |
New Zealand | | | 1.1% | |
Mexico | | | 1.1% | |
Other | | | 7.3% | |
Other Assets Less Liabilities | | | (0.2)% | |
Net Assets | | | 100% | |
| 1 | Includes 5.0% (as a percentage of net assets) in emerging market countries. |
24
Nuveen Real Estate Securities Fund
Fund Allocation
(% of net assets)
| | | | |
Real Estate Investment Trust Common Stocks | | | 94.6% | |
Common Stocks | | | 2.8% | |
Investments Purchased with Collateral from Securities Lending | | | 0.0% | |
Money Market Funds | | | 1.4% | |
Other Assets Less Liabilities | | | 1.2% | |
Net Assets | | | 100% | |
Portfolio Composition
(% of net assets)
| | | | |
Residential | | | 18.6% | |
Office | | | 16.1% | |
Retail | | | 15.3% | |
Specialized | | | 14.6% | |
Industrial | | | 12.1% | |
Health Care | | | 7.5% | |
Hotels & Resorts | | | 6.9% | |
Other | | | 6.3% | |
Investments Purchased With Collateral from Securities Lending | | | 0.0% | |
Money Market Funds | | | 1.4% | |
Other Assets Less Liabilities | | | 1.2% | |
Net Assets | | | 100% | |
Top Five Common Stock and Real Estate Investment Trust Common Stock Holdings
(% of net assets)
| | | | |
Simon Property Group, Inc. | | | 6.5% | |
Prologis Inc. | | | 4.8% | |
Duke Realty Corporation | | | 4.1% | |
Boston Properties, Inc. | | | 3.9% | |
Essex Property Trust Inc. | | | 3.7% | |
25
Expense Examples
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. Since the expense examples for Nuveen Global Real Estate Securities Fund reflect only the first 103 days of the Fund’s operations they may not provide a meaningful understanding of the Fund’s ongoing expenses.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended June 30, 2018.
The beginning of the period for Nuveen Global Infrastructure Fund, Nuveen Real Asset Income Fund and Nuveen Real Estate Securities Fund is January 1, 2018. The beginning of the period for Nuveen Global Real Estate Securities Fund is March 20, 2018 (commencement of operations).
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the following tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Global Infrastructure Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R3 | | | Class R6 | | | Class I | | | Class T* | |
Actual Performance | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 976.20 | | | $ | 972.40 | | | $ | 974.80 | | | $ | 978.00 | | | $ | 978.00 | | | $ | 976.10 | |
Expenses Incurred During the Period | | $ | 5.98 | | | $ | 9.63 | | | $ | 7.20 | | | $ | 4.36 | | | $ | 4.76 | | | $ | 5.98 | |
Hypothetical Performance (5% annualized return before expenses) | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,018.74 | | | $ | 1,015.03 | | | $ | 1,017.50 | | | $ | 1,020.38 | | | $ | 1,019.98 | | | $ | 1,018.74 | |
Expenses Incurred During the Period | | $ | 6.11 | | | $ | 9.84 | | | $ | 7.35 | | | $ | 4.46 | | | $ | 4.86 | | | $ | 6.11 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.22%, 1.97%, 1.47%, 0.89%, 0.97% and 1.22% for Classes A, C, R3, R6, I and T respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
26
Nuveen Global Real Estate Securities Fund
| | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R6 | | | Class I | |
Actual Performance | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,040.90 | | | $ | 1,038.50 | | | $ | 1,041.50 | | | $ | 1,041.50 | |
Expenses Incurred During the Period | | $ | 3.74 | | | $ | 5.90 | | | $ | 3.02 | | | $ | 3.02 | |
Hypothetical Performance (5% annualized return before expenses) | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,010.44 | | | $ | 1,008.32 | | | $ | 1,011.15 | | | $ | 1,011.15 | |
Expenses Incurred During the Period | | $ | 3.69 | | | $ | 5.81 | | | $ | 2.98 | | | $ | 2.98 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.30%, 2.05%, 1.05%, and 1.05% for Classes A, C, R6 and I respectively, multiplied by the average account value over the period, multiplied by 103/365 (to reflect 103 days in the period since commencement of operation).
Nuveen Real Asset Income Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R6 | | | Class I | | | Class T* | |
Actual Performance | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 981.20 | | | $ | 977.50 | | | $ | 982.30 | | | $ | 982.50 | | | $ | 981.20 | |
Expenses Incurred During the Period | | $ | 5.60 | | | $ | 9.27 | | | $ | 3.98 | | | $ | 4.37 | | | $ | 5.60 | |
Hypothetical Performance (5% annualized return before expenses) | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,019.14 | | | $ | 1,015.42 | | | $ | 1,020.78 | | | $ | 1,020.38 | | | $ | 1,019.14 | |
Expenses Incurred During the Period | | $ | 5.71 | | | $ | 9.44 | | | $ | 4.06 | | | $ | 4.46 | | | $ | 5.71 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.14%, 1.89%, 0.81%, 0.89% and 1.14% for Classes A, C, R6, I and T respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Nuveen Real Estate Securities Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Share Class | |
| | | Class A | | | Class C | | | Class R3 | | | Class R6 | | | Class I | | | Class T* | |
Actual Performance | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,003.00 | | | $ | 999.60 | | | $ | 1,002.00 | | | $ | 1,005.50 | | | $ | 1,004.90 | | | $ | 1,003.20 | |
Expenses Incurred During the Period | | $ | 6.36 | | | $ | 10.06 | | | $ | 7.59 | | | $ | 4.38 | | | $ | 5.12 | | | $ | 6.36 | |
Hypothetical Performance (5% annualized return before expenses) | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Account Value | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
Ending Account Value | | $ | 1,018.45 | | | $ | 1,014.73 | | | $ | 1,017.21 | | | $ | 1,020.43 | | | $ | 1,019.69 | | | $ | 1,018.45 | |
Expenses Incurred During the Period | | $ | 6.41 | | | $ | 10.14 | | | $ | 7.65 | | | $ | 4.41 | | | $ | 5.16 | | | $ | 6.41 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.28%, 2.03%, 1.53%, 0.88%, 1.03% and 1.28% for Classes A, C, R3, R6, I and T respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
| * | Class T Shares are not available for public offering. |
27
Nuveen Global Infrastructure Fund
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | LONG-TERM INVESTMENTS – 97.7% | | | | | | | | | | | | |
| | | | |
| | | | COMMON STOCKS – 93.7% | | | | | | | | | | | | |
| | | | |
| | | | Air Freight & Logistics – 0.1% | | | | | | | | | |
| | | | |
| | 1,944 | | | BPost SA | | | | | | | | | | $ | 30,716 | |
| | | | |
| | 11,071 | | | Oesterreichische Post AG, (2) | | | | | | | | | | | 504,530 | |
| | | | Total Air Freight & Logistics | | | | | | | | | | | 535,246 | |
| | | | |
| | | | Commercial Services & Supplies – 4.6% | | | | | | | | | |
| | | | |
| | 112,443 | | | Advanced Disposal Services, Inc., (3) | | | | | | | | | | | 2,786,338 | |
| | | | |
| | 19,027 | | | Casella Waste Systems, Inc., (3) | | | | | | | | | | | 487,281 | |
| | | | |
| | 2,914,578 | | | China Everbright International Limited, (2) | | | | | | | | | | | 3,753,624 | |
| | | | |
| | 150,662 | | | Waste Connections Inc. | | | | | | | | | | | 11,341,835 | |
| | | | |
| | 76,189 | | | Waste Management, Inc. | | | | | | | | | | | 6,197,213 | |
| | | | Total Commercial Services & Supplies | | | | | | | | | | | 24,566,291 | |
| | | | |
| | | | Construction & Engineering – 6.1% | | | | | | | | | |
| | | | |
| | 63,933 | | | Eiffage SA, (2) | | | | | | | | | | | 6,945,902 | |
| | | | |
| | 354,508 | | | Ferrovial SA, (2) | | | | | | | | | | | 7,254,144 | |
| | | | |
| | 193,987 | | | Vinci S.A, (2) | | | | | | | | | | | 18,621,028 | |
| | | | Total Construction & Engineering | | | | | | | | | | | 32,821,074 | |
| | | | |
| | | | Diversified Telecommunication Services – 2.0% | | | | | | | | | |
| | | | |
| | 284,151 | | | Bharti Infratel Limited, (2) | | | | | | | | | | | 1,248,508 | |
| | | | |
| | 191,171 | | | Cellnex Telecom S.A.U, (2), (3) | | | | | | | | | | | 4,806,319 | |
| | | | |
| | 90,373 | | | HKBN Limited, (2) | | | | | | | | | | | 139,017 | |
| | | | |
| | 61,768 | | | HKT Trust and HKT Limited, (2) | | | | | | | | | | | 79,107 | |
| | | | |
| | 214,482 | | | Infrastructure Wireless Italiane SpA, (2) | | | | | | | | | | | 1,650,310 | |
| | | | |
| | 5,000,618 | | | Netlink NBN Trust, (2) | | | | | | | | | | | 2,715,932 | |
| | | | Total Diversified Telecommunication Services | | | | | | | | | | | 10,639,193 | |
| | | | |
| | | | Electric Utilities – 20.2% | | | | | | | | | |
| | | | |
| | 3,704 | | | Alliant Energy Corporation | | | | | | | | | | | 156,753 | |
| | | | |
| | 117,217 | | | Alupar Investimento SA | | | | | | | | | | | 459,704 | |
| | | | |
| | 122,016 | | | American Electric Power Company, Inc. | | | | | | | | | | | 8,449,608 | |
| | | | |
| | 1,537,728 | | | AusNet Services, (2) | | | | | | | | | | | 1,826,366 | |
| | | | |
| | 24,772 | | | Avangrid Inc. | | | | | | | | | | | 1,311,182 | |
| | | | |
| | 120,365 | | | Brookfield Infrastructure Partners LP | | | | | | | | | | | 4,622,016 | |
| | | | |
| | 428,364 | | | CK Infrastructure Holdings Ltd, (2) | | | | | | | | | | | 3,171,058 | |
| | | | |
| | 184,222 | | | Duke Energy Corporation | | | | | | | | | | | 14,568,276 | |
| | | | |
| | 72,528 | | | Edison International | | | | | | | | | | | 4,588,847 | |
| | | | |
| | 7,498 | | | Elia System Operator SA NV, (2) | | | | | | | | | | | 466,078 | |
28
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Electric Utilities (continued) | | | | | | | | | |
| | | | |
| | 1,003,717 | | | Enel SpA, ADR, (2) | | | | | | | | | | $ | 5,561,778 | |
| | | | |
| | 109,627 | | | Enersis Chile SA | | | | | | | | | | | 534,980 | |
| | | | |
| | 33,346 | | | Entergy Corporation | | | | | | | | | | | 2,694,023 | |
| | | | |
| | 18,652 | | | Evergy Inc. | | | | | | | | | | | 1,047,310 | |
| | | | |
| | 138,529 | | | Eversource Energy | | | | | | | | | | | 8,119,185 | |
| | | | |
| | 507,110 | | | Iberdrola SA, (2) | | | | | | | | | | | 3,910,706 | |
| | | | |
| | 664,475 | | | Infratil Limited, (2) | | | | | | | | | | | 1,520,051 | |
| | | | |
| | 94,539 | | | NextEra Energy Inc. | | | | | | | | | | | 15,790,849 | |
| | | | |
| | 105,678 | | | PG&E Corporation | | | | | | | | | | | 4,497,656 | |
| | | | |
| | 34,434 | | | PNM Resources Inc. | | | | | | | | | | | 1,339,483 | |
| | | | |
| | 21,232 | | | Portland General Electric Company | | | | | | | | | | | 907,880 | |
| | | | |
| | 154,136 | | | Power Assets Holdings Limited | | | | | | | | | | | 1,077,592 | |
| | | | |
| | 1,333,560 | | | Power Grid Corporation of India Limited, (2) | | | | | | | | | | | 3,651,110 | |
| | | | |
| | 116,129 | | | PPL Corporation | | | | | | | | | | | 3,315,483 | |
| | | | |
| | 271,898 | | | Red Electrica Corporacion SA, (2), (3) | | | | | | | | | | | 5,523,881 | |
| | | | |
| | 3,584,126 | | | Spark Infrastructure Group, (2) | | | | | | | | | | | 6,046,456 | |
| | | | |
| | 385,358 | | | Terna-Rete Elettrica Nazionale SpA, (2) | | | | | | | | | | | 2,081,191 | |
| | | | |
| | 113,796 | | | Transmissora Alianca de Energia Eletrica SA | | | | | | | | | | | 549,051 | |
| | | | |
| | 16,927 | | | Xcel Energy, Inc. | | | | | | | | | | | 773,225 | |
| | | | Total Electric Utilities | | | | | | | | | | | 108,561,778 | |
| | | | |
| | | | Gas Utilities – 1.7% | | | | | | | | | |
| | | | |
| | 243,738 | | | APA Group, (2) | | | | | | | | | | | 1,775,733 | |
| | | | |
| | 4,515 | | | Chesapeake Utilities Corporation | | | | | | | | | | | 360,974 | |
| | | | |
| | 451,837 | | | China Resources Gas Group Limited, (2) | | | | | | | | | | | 1,953,380 | |
| | | | |
| | 59,790 | | | ENN Energy Holdings Limited, (2) | | | | | | | | | | | 585,547 | |
| | | | |
| | 72,217 | | | Gas Natural SDG S.A, (2), (3) | | | | | | | | | | | 1,909,116 | |
| | | | |
| | 841,694 | | | Hong Kong and China Gas Company Limited, (2) | | | | | | | | | | | 1,608,926 | |
| | | | |
| | 141,741 | | | Infraestructura Energitca Nova SAB de CV | | | | | | | | | | | 635,257 | |
| | | | |
| | 779 | | | One Gas Inc. | | | | | | | | | | | 58,222 | |
| | | | |
| | 1,025 | | | Spire, Inc. | | | | | | | | | | | 72,416 | |
| | | | Total Gas Utilities | | | | | | | | | | | 8,959,571 | |
| | | | |
| | | | IT Services – 0.3% | | | | | | | | | |
| | | | |
| | 26,223 | | | Interxion Holdings NV, (3) | | | | | | | | | | | 1,636,840 | |
| | | | |
| | | | Machinery – 0.2% | | | | | | | | | |
| | | | |
| | 62,372 | | | Evoqua Water Technologies Co., (3) | | | | | | | | | | | 1,278,626 | |
| | | | |
| | | | Media – 0.1% | | | | | | | | | |
| | | | |
| | 42,236 | | | Eutelsat Communications, (2) | | | | | | | | | | | 874,083 | |
| | | | |
| | | | Multi-Utilities – 7.4% | | | | | | | | | |
| | | | |
| | 34,722 | | | Ameren Corporation | | | | | | | | | | | 2,112,834 | |
29
Nuveen Global Infrastructure Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Multi-Utilities (continued) | | | | | | | | | |
| | | | |
| | 64,065 | | | CMS Energy Corporation | | | | | | | | | | $ | 3,028,993 | |
| | | | |
| | 11,978 | | | Consolidated Edison, Inc. | | | | | | | | | | | 934,044 | |
| | | | |
| | 97,530 | | | Dominion Energy, Inc. | | | | | | | | | | | 6,649,596 | |
| | | | |
| | 43,480 | | | DTE Energy Company | | | | | | | | | | | 4,505,832 | |
| | | | |
| | 386,971 | | | E.ON SE, (2) | | | | | | | | | | | 4,122,981 | |
| | | | |
| | 95,871 | | | Engie, (2) | | | | | | | | | | | 1,466,490 | |
| | | | |
| | 476,867 | | | Hera SpA, (2) | | | | | | | | | | | 1,483,818 | |
| | | | |
| | 59,617 | | | National Grid PLC, Sponsored ADR | | | | | | | | | | | 3,329,609 | |
| | | | |
| | 22,479 | | | NiSource Inc. | | | | | | | | | | | 590,748 | |
| | | | |
| | 45,038 | | | Redes Energeticas Nacionais SA, (2) | | | | | | | | | | | 125,997 | |
| | | | |
| | 38,120 | | | Sempra Energy | | | | | | | | | | | 4,426,113 | |
| | | | |
| | 321,296 | | | Suez Environment Company, (2) | | | | | | | | | | | 4,156,288 | |
| | | | |
| | 8,281 | | | Unitil Corp. | | | | | | | | | | | 422,662 | |
| | | | |
| | 113,930 | | | Veolia Environment S.A., ADR, (2) | | | | | | | | | | | 2,434,572 | |
| | | | Total Multi-Utilities | | | | | | | | | | | 39,790,577 | |
| | | | |
| | | | Oil, Gas & Consumable Fuels – 18.8% | | | | | | | | | |
| | | | |
| | 66,298 | | | Cheniere Energy Inc., (3) | | | | | | | | | | | 4,321,967 | |
| | | | |
| | 624,106 | | | Enbridge Inc. | | | | | | | | | | | 22,274,343 | |
| | | | |
| | 176,960 | | | Enterprise Products Partnership LP | | | | | | | | | | | 4,896,483 | |
| | | | |
| | 77,016 | | | Inter Pipeline Limited | | | | | | | | | | | 1,443,482 | |
| | | | |
| | 974,594 | | | Kinder Morgan, Inc. | | | | | | | | | | | 17,221,076 | |
| | | | |
| | 14,675 | | | Koninklijke Vopak NV, (2) | | | | | | | | | | | 676,399 | |
| | | | |
| | 43,966 | | | Magellan Midstream Partners LP | | | | | | | | | | | 3,037,171 | |
| | | | |
| | 147,181 | | | ONEOK, Inc. | | | | | | | | | | | 10,277,649 | |
| | | | |
| | 240,331 | | | Pembina Pipeline Corporation | | | | | | | | | | | 8,323,334 | |
| | | | |
| | 56,030 | | | Petronet LNG Ltd, (2) | | | | | | | | | | | 180,354 | |
| | | | |
| | 698,305 | | | Snam Rete Gas S.p.A, (2) | | | | | | | | | | | 2,910,119 | |
| | | | |
| | 35,747 | | | Targa Resources Corporation | | | | | | | | | | | 1,769,119 | |
| | | | |
| | 162,069 | | | TransCanada Corporation | | | | | | | | | | | 7,001,381 | |
| | | | |
| | 215,218 | | | TransCanada Corporation | | | | | | | | | | | 9,311,680 | |
| | | | |
| | 275,348 | | | Williams Companies Inc. | | | | | | | | | | | 7,464,684 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | 101,109,241 | |
| | | | |
| | | | Road & Rail – 3.4% | | | | | | | | | |
| | | | |
| | 757,800 | | | Aurizon Holdings Limited, (2) | | | | | | | | | | | 2,423,399 | |
| | | | |
| | 30,952 | | | East Japan Railway Company, (2) | | | | | | | | | | | 2,964,130 | |
| | | | |
| | 21,759 | | | Genesee & Wyoming Inc., (3) | | | | | | | | | | | 1,769,442 | |
| | | | |
| | 172,851 | | | MTR Corporation, (2) | | | | | | | | | | | 954,767 | |
| | | | |
| | 202,659 | | | Rumo SA, (3) | | | | | | | | | | | 737,275 | |
| | | | |
| | 65,826 | | | Union Pacific Corporation | | | | | | | | | | | 9,326,228 | |
| | | | Total Road & Rail | | | | | | | | | | | 18,175,241 | |
30
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Transportation Infrastructure – 27.4% | | | | | | | | | |
| | | | |
| | 104,318 | | | Aena S.A, (2), (3) | | | | | | | | | | $ | 18,886,446 | |
| | | | |
| | 48,060 | | | Aeroports de Paris, (2) | | | | | | | | | | | 10,856,285 | |
| | | | |
| | 594,920 | | | Atlantia SpA, (2) | | | | | | | | | | | 17,539,555 | |
| | | | |
| | 875,214 | | | Atlas Arteria Ltd | | | | | | | | | | | 4,164,725 | |
| | | | |
| | 1,657,846 | | | Auckland International Airport Limited, (2) | | | | | | | | | | | 7,606,686 | |
| | | | |
| | 767,846 | | | China Merchants Port Holdings Co., Ltd., (2) | | | | | | | | | | | 1,555,106 | |
| | | | |
| | 609,574 | | | COSCO SHIPPING Ports Limited, (2) | | | | | | | | | | | 507,004 | |
| | | | |
| | 497,008 | | | Enav S.p.A, (2) | | | | | | | | | | | 2,486,429 | |
| | | | |
| | 86,891 | | | Flughafen Wien AG, (2) | | | | | | | | | | | 3,235,324 | |
| | | | |
| | 57,959 | | | Flughafen Zuerich AG, (2) | | | | | | | | | | | 11,792,630 | |
| | | | |
| | 69,867 | | | Fraport AG, (2) | | | | | | | | | | | 6,721,520 | |
| | | | |
| | 559,917 | | | Groupe Eurotunnel SA, (2) | | | | | | | | | | | 7,676,382 | |
| | | | |
| | 32,946 | | | Grupo Aeroportuario Centro Norte, SA, ADR | | | | | | | | | | | 1,372,201 | |
| | | | |
| | 27,711 | | | Grupo Aeroportuario del Pacifico S.A.B. de CV, Sponsored ADR | | | | | | | | | | | 2,574,629 | |
| | | | |
| | 28,566 | | | Hamburger Hafen und Logistik AG, (2) | | | | | | | | | | | 618,027 | |
| | | | |
| | 450,995 | | | International Container Terminal Services, Incorporated | | | | | | | | | | | 653,242 | |
| | | | |
| | 23,141 | | | Japan Airport Terminal Company, (2) | | | | | | | | | | | 1,082,243 | |
| | | | |
| | 95,706 | | | Kamigumi Company Limited, (2) | | | | | | | | | | | 1,986,458 | |
| | | | |
| | 67,696 | | | Macquarie Infrastructure Corporation | | | | | | | | | | | 2,856,771 | |
| | | | |
| | 746,913 | | | Port of Tauranga Limited, (2) | | | | | | | | | | | 2,578,566 | |
| | | | |
| | 37,783 | | | Promotora y Operadora de Infraestructura SAB de CV (Pinfra) | | | | | | | | | | | 338,178 | |
| | | | |
| | 83,839 | | | Promotora y Operadora de Infraestructura SAB de CV (Pinfra) | | | | | | | | | | | 607,888 | |
| | | | |
| | 104,484 | | | Singapore Airport Terminal Services Limited, (2) | | | | | | | | | | | 382,719 | |
| | | | |
| | 19,166 | | | Societa Iniziative Autostradali e Servizi SpA, (2) | | | | | | | | | | | 287,526 | |
| | | | |
| | 2,003,575 | | | Sydney Airport, (2) | | | | | | | | | | | 10,606,808 | |
| | | | |
| | 2,939,019 | | | Transurban Group, (2) | | | | | | | | | | | 26,025,915 | |
| | | | |
| | 1,267,578 | | | Westports Holdings BHD, (2) | | | | | | | | | | | 1,064,978 | |
| | | | |
| | 76,568 | | | Westshore Terminals Investment Corporation | | | | | | | | | | | 1,387,910 | |
| | | | Total Transportation Infrastructure | | | | | | | | | | | 147,452,151 | |
| | | | |
| | | | Water Utilities – 1.3% | | | | | | | | | |
| | | | |
| | 1,747,256 | | | Aguas Andinas SA. Class A | | | | | | | | | | | 954,393 | |
| | | | |
| | 110,312 | | | AquaVenture Holdings Limited, (3) | | | | | | | | | | | 1,718,661 | |
| | | | |
| | 2,764,731 | | | Beijing Enterprises Water Group, (2) | | | | | | | | | | | 1,503,361 | |
| | | | |
| | 1,695,790 | | | China Everbright Water Limited, (2) | | | | | | | | | | | 497,146 | |
| | | | |
| | 41,701 | | | Cia de Saneamento do Parana | | | | | | | | | | | 510,537 | |
| | | | |
| | 7,975 | | | Guangdong Investment Limited, (2) | | | | | | | | | | | 12,622 | |
| | | | |
| | 33,278 | | | Pennon Group PLC, (2) | | | | | | | | | | | 348,022 | |
| | | | |
| | 61,180 | | | Severn Trent PLC, (2) | | | | | | | | | | | 1,595,194 | |
| | | | Total Water Utilities | | | | | | | | | | | 7,139,936 | |
31
Nuveen Global Infrastructure Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Wireless Telecommunication Services – 0.1% | | | | | | | | | |
| | | | |
| | 9,268,311 | | | Sarana Menara Nusantara Tbk PT | | | | | | | | | | $ | 401,002 | |
| | | | Total Common Stocks (cost $426,716,332) | | | | | | | | | | | 503,940,850 | |
| | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 3.5% | | | | | | | | | | | | |
| | | | |
| | | | Health Care – 0.5% | | | | | | | | | |
| | | | |
| | 1,295,579 | | | Parkway Life Real Estate Investment Trust, (2) | | | | | | | | | | $ | 2,583,706 | |
| | | | |
| | | | Specialized – 3.0% | | | | | | | | | |
| | | | |
| | 24,539 | | | American Tower Corporation, REIT | | | | | | | | | | | 3,537,788 | |
| | | | |
| | 19,626 | | | Coresite Realty Corporation | | | | | | | | | | | 2,174,953 | |
| | | | |
| | 21,562 | | | Digital Realty Trust Inc. | | | | | | | | | | | 2,405,888 | |
| | | | |
| | 2,817,543 | | | Keppel DC REIT, (2) | | | | | | | | | | | 2,807,301 | |
| | | | |
| | 33,579 | | | SBA Communications Corporation, (3) | | | | | | | | | | | 5,544,564 | |
| | | | Total Specialized | | | | | | | | | | | 16,470,494 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $16,958,613) | | | | | | | | | | | 19,054,200 | |
| | | | |
| Shares | | | Description (1), (4) | | | | | | | | Value | |
| | | | |
| | | | INVESTMENT COMPANIES – 0.5% | | | | | | | | | |
| | | | |
| | 208,055 | | | 3l Infrastructure PLC | | | | | | | | | | $ | 613,963 | |
| | | | |
| | 5,365,313 | | | Keppel Infrastructure Trust | | | | | | | | | | | 2,046,899 | |
| | | | Total Investment Companies (cost $2,501,187) | | | | | | | | | | | 2,660,862 | |
| | | | Total Long-Term Investments (cost $446,176,132) | | | | | | | | | | | 525,655,912 | |
| | | | |
Principal
Amount (000) | | | Description (1) | | Coupon | | | Maturity | | | Value | |
| | | | |
| | | | SHORT-TERM INVESTMENTS – 1.0% | | | | | | | | | | | | |
| | | | |
| | | | REPURCHASE AGREEMENTS – 1.0% | | | | | | | | | |
| | | | |
| $ | 5,403 | | | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/18,
repurchase price $5,403,740, collateralized by $5,755,000 U.S. Treasury Notes,
2.000%, due 2/15/25, value $5,515,684 | | | 0.900% | | | | 7/02/18 | | | $ | 5,403,335 | |
| | | | Total Short-Term Investments (cost $5,403,335) | | | | | | | | | | | 5,403,335 | |
| | | | Total Investments (cost $451,579,467) – 98.7% | | | | | | | | | | | 531,059,247 | |
| | | | Other Assets Less Liabilities – 1.3% | | | | | | | | | | | 6,828,112 | |
| | | | Net Assets – 100% | | | | | | | | | | $ | 537,887,359 | |
32
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) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| (4) | A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
| ADR | American Depositary Receipt |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
33
Nuveen Global Real Estate Securities Fund
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | LONG-TERM INVESTMENTS – 97.5% | | | | |
| | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 71.7% | | | | |
| | |
| | | | Diversified – 9.5% | | | |
| | |
| | 3,659 | | | Abacus Property Group, (2) | | $ | 10,212 | |
| | |
| | 3,265 | | | Alexander & Baldwin Inc. | | | 76,728 | |
| | |
| | 779 | | | Armada Hoffler Properties Inc. | | | 11,607 | |
| | |
| | 348 | | | Cofinimmo, SANV | | | 42,915 | |
| | |
| | 6,670 | | | Dream Global Real Estate Investment Trust | | | 72,857 | |
| | |
| | 1,476 | | | Empire State Realty Trust Inc. | | | 25,240 | |
| | |
| | 2,088 | | | Fonciere Des Regions, (2) | | | 216,950 | |
| | |
| | 4,409 | | | Forest City Realty Trust Inc. | | | 100,569 | |
| | |
| | 856 | | | Gecina SA, (2) | | | 143,002 | |
| | |
| | 7,792 | | | Goodman Property Trust, (2) | | | 7,655 | |
| | |
| | 10,803 | | | GPT Group, (2) | | | 40,420 | |
| | |
| | 1,804 | | | Hispania Activos Inmobiliarios SOCIMI SA, (2), (3) | | | 38,312 | |
| | |
| | 52 | | | Hulic Reit Inc., (2) | | | 80,564 | |
| | |
| | 1,136 | | | ICADE, (2) | | | 106,407 | |
| | |
| | 2,388 | | | Liberty Property Trust | | | 105,860 | |
| | |
| | 87,587 | | | LondonMetric Property PLC, (2) | | | 213,430 | |
| | |
| | 4,412 | | | Mapletree Greater China Commercial Trust, (2) | | | 3,693 | |
| | |
| | 20,544 | | | Merlin Properties Socimi SA, (2), (3) | | | 298,260 | |
| | |
| | 28,500 | | | Minto Apartment Real Estate Investment Trust, (2), (WI/DD) | | | 314,342 | |
| | |
| | 26,319 | | | Mirvac Group, (2) | | | 42,242 | |
| | |
| | 17,510 | | | Nexus Real Estate Investment Trust | | | 26,372 | |
| | |
| | 24,238 | | | Secure Income REIT Plc | | | 122,834 | |
| | |
| | 166 | | | Star Asia Investment Corp, (2) | | | 164,644 | |
| | |
| | 16,318 | | | Stride Property Group, (2) | | | 20,223 | |
| | |
| | 2,192 | | | Terreis | | | 105,464 | |
| | |
| | 1,347 | | | VEREIT, Inc. | | | 10,022 | |
| | |
| | 1,319 | | | Washington Real Estate Investment Trust | | | 40,005 | |
| | | | Total Diversified | | | 2,440,829 | |
| | |
| | | | Health Care – 4.8% | | | |
| | |
| | 920 | | | Aedifica SA | | | 83,909 | |
| | |
| | 152,220 | | | Assura PLC, (2) | | | 115,616 | |
| | |
| | 8,968 | | | Health Care Property Investors Inc. | | | 231,554 | |
| | |
| | 4,452 | | | Healthcare Realty Trust, Inc. | | | 129,464 | |
| | |
| | 1,294 | | | MedEquities Realty Trust, Inc. | | | 14,260 | |
| | |
| | 1,694 | | | Medical Properties Trust Inc. | | | 23,784 | |
34
| | | | | | | | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Health Care (continued) | | | |
| | |
| | 98 | | | NorthWest Healthcare Properties REIT | | $ | 842 | |
| | |
| | 36,805 | | | Parkway Life Real Estate Investment Trust, (2) | | | 73,398 | |
| | |
| | 11,190 | | | Physicians Realty Trust | | | 178,369 | |
| | |
| | 225 | | | Sabra Health Care Real Estate Investment Trust Inc. | | | 4,889 | |
| | |
| | 55,574 | | | Target Healthcare REIT Ltd | | | 81,045 | |
| | |
| | 5,214 | | | Ventas Inc. | | | 296,937 | |
| | | | Total Health Care | | | 1,234,067 | |
| | |
| | | | Hotels & Resorts – 3.6% | | | |
| | |
| | 3,455 | | | Apple Hospitality REIT, Inc. | | | 61,775 | |
| | |
| | 5,000 | | | DiamondRock Hospitality Company | | | 61,400 | |
| | |
| | 7,250 | | | Host Hotels & Resorts Inc. | | | 152,758 | |
| | |
| | 35 | | | Ichigo Hotel REIT Investment Corp, (2) | | | 44,011 | |
| | |
| | 29 | | | Invincible Investment Corporation, (2) | | | 13,049 | |
| | |
| | 144 | | | LaSalle Hotel Properties | | | 4,929 | |
| | |
| | 1,664 | | | MGM Growth Properties LLC | | | 50,685 | |
| | |
| | 1,170 | | | Pebblebrook Hotel Trust | | | 45,396 | |
| | |
| | 11,767 | | | Summit Hotel Properties Inc. | | | 168,386 | |
| | |
| | 19,010 | | | Sunstone Hotel Investors Inc. | | | 315,946 | |
| | | | Total Hotels & Resorts | | | 918,335 | |
| | |
| | | | Industrial – 12.7% | | | |
| | |
| | 373 | | | DCT Industrial Trust Inc. | | | 24,890 | |
| | |
| | 12,962 | | | Dream Industrial Real Estate Investment Trust | | | 101,752 | |
| | |
| | 17,478 | | | Duke Realty Corporation | | | 507,386 | |
| | |
| | 322 | | | EastGroup Properties Inc. | | | 30,770 | |
| | |
| | 4,966 | | | First Industrial Realty Trust, Inc. | | | 165,566 | |
| | |
| | 137,178 | | | Frasers Logistics & Industrial Trust, (2) | | | 105,515 | |
| | |
| | 52,971 | | | Goodman Group, (2) | | | 377,621 | |
| | |
| | 1,575 | | | Granite Real Estate, Inc. | | | 64,239 | |
| | |
| | 8,695 | | | Mapletree Industrial Trust, (2) | | | 12,304 | |
| | |
| | 158,781 | | | Mapletree Logistics Trust, (2) | | | 143,111 | |
| | |
| | 62 | | | Mitsui Fudosan Logistics Park Inc., (2) | | | 189,499 | |
| | |
| | 1,588 | | | Montea SCA | | | 84,378 | |
| | |
| | 78 | | | Nippon Prologis REIT Incorporated, (2) | | | 161,882 | |
| | |
| | 9,070 | | | Prologis Inc. | | | 595,808 | |
| | |
| | 95,774 | | | Propertylink Group, (2) | | | 75,134 | |
| | |
| | 29,551 | | | SEGRO PLC, (2) | | | 260,251 | |
| | |
| | 2,534 | | | STAG Industrial Inc. | | | 69,001 | |
| | |
| | 32,012 | | | Summit Industrial Income REIT | | | 213,308 | |
| | |
| | 2,480 | | | Terreno Realty Corporation | | | 93,422 | |
| | | | Total Industrial | | | 3,275,837 | |
35
Nuveen Global Real Estate Securities Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Mortgage – 0.2% | | | |
| | |
| | 1,802 | | | Blackstone Mortgage Trust Inc., Class A | | $ | 56,637 | |
| | |
| | 45 | | | KKR Real Estate Finance Trust, Inc. | | | 890 | |
| | |
| | 112 | | | TPG Re Finance Trust Inc. | | | 2,276 | |
| | | | Total Mortgage | | | 59,803 | |
| | |
| | | | Office – 10.2% | | | |
| | |
| | 3,229 | | | Alexandria Real Estate Equities Inc. | | | 407,403 | |
| | |
| | 845 | | | Allied Properties Real Estate Investment Trust | | | 26,899 | |
| | |
| | 3,916 | | | Boston Properties, Inc. | | | 491,145 | |
| | |
| | 3,910 | | | Brandywine Realty Trust | | | 66,001 | |
| | |
| | 42,905 | | | Centuria Metropolitan REIT | | | 78,745 | |
| | |
| | 2,521 | | | Columbia Property Trust Inc. | | | 57,252 | |
| | |
| | 2,836 | | | Corporate Office Properties | | | 82,216 | |
| | |
| | 10,798 | | | Cousins Properties, Inc. | | | 104,633 | |
| | |
| | 2,228 | | | Derwent London PLC, (2) | | | 91,153 | |
| | |
| | 16,421 | | | Dexus Property Group, (2) | | | 118,030 | |
| | |
| | 1,693 | | | Douglas Emmett Inc. | | | 68,025 | |
| | |
| | 113 | | | Dream Office Real Estate Investment Trust | | | 2,014 | |
| | |
| | 2,446 | | | Easterly Government Properties, Inc. | | | 48,333 | |
| | |
| | 1,906 | | | Equity Commonwealth | | | 60,039 | |
| | |
| | 156,926 | | | GDI Property Group, (2) | | | 149,877 | |
| | |
| | 1,619 | | | Great Portland Estates PLC, (2) | | | 15,254 | |
| | |
| | 2,841 | | | Highwoods Properties, Inc. | | | 144,124 | |
| | |
| | 5,695 | | | Hudson Pacific Properties Inc. | | | 201,774 | |
| | |
| | 1,131 | | | Inmobiliaria Colonial SA, (2), (3) | | | 12,471 | |
| | |
| | 56 | | | JBG Smith Properties | | | 2,042 | |
| | |
| | 257 | | | Kilroy Realty Corporation | | | 19,439 | |
| | |
| | 9 | | | Nippon Building Fund Inc., (2) | | | 51,914 | |
| | |
| | 1,434 | | | NSI NV | | | 60,119 | |
| | |
| | 5,821 | | | Paramount Group Inc. | | | 89,643 | |
| | |
| | 430 | | | Piedmont Office Realty Trust | | | 8,570 | |
| | |
| | 477 | | | SL Green Realty Corporation | | | 47,953 | |
| | |
| | 1,553 | | | Vornado Realty Trust | | | 114,798 | |
| | | | Total Office | | | 2,619,866 | |
| | |
| | | | Residential – 10.1% | | | |
| | |
| | 3,093 | | | American Campus Communities Inc. | | | 132,628 | |
| | |
| | 1,060 | | | American Homes 4 Rents, Class A | | | 23,511 | |
| | |
| | 2,642 | | | AvalonBay Communities, Inc. | | | 454,133 | |
| | |
| | 149 | | | Boardwalk Real Estate Investment Trust | | | 5,176 | |
| | |
| | 3,361 | | | Camden Property Trust | | | 306,288 | |
| | |
| | 600 | | | Canadian Apartment Properties REIT | | | 19,456 | |
36
| | | | | | | | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Residential (continued) | | | |
| | |
| | 2,036 | | | Equity Lifestyles Properties Inc. | | $ | 187,108 | |
| | |
| | 1,588 | | | Equity Residential | | | 101,140 | |
| | |
| | 1,912 | | | Essex Property Trust Inc. | | | 457,102 | |
| | |
| | 3,133 | | | InterRent Real Estate Investment Trust | | | 26,215 | |
| | |
| | 1,463 | | | Investors Real Estate Trust | | | 8,090 | |
| | |
| | 6,546 | | | Invitation Homes, Inc. | | | 150,951 | |
| | |
| | 2,071 | | | Killam Apartment Real Estate I | | | 23,598 | |
| | |
| | 6 | | | Nippon Accommodations Fund Inc., (2) | | | 27,309 | |
| | |
| | 5,120 | | | Northview Apartment Real Estate Investment Trust | | | 102,349 | |
| | |
| | 2,568 | | | Sun Communities Inc. | | | 251,356 | |
| | |
| | 6,665 | | | UDR Inc. | | | 250,204 | |
| | |
| | 7,789 | | | UNITE Group PLC/The, (2) | | | 88,384 | |
| | | | Total Residential | | | 2,614,998 | |
| | |
| | | | Retail – 12.2% | | | |
| | |
| | 38 | | | Acadia Realty Trust | | | 1,040 | |
| | |
| | 735 | | | Agree Realty Corporation | | | 38,786 | |
| | |
| | 13 | | | Alexander’s Inc. | | | 4,974 | |
| | |
| | 4,325 | | | Brixmor Property Group Inc. | | | 75,385 | |
| | |
| | 4,243 | | | CT Real Estate Investment Trust | | | 41,634 | |
| | |
| | 317 | | | Eurocommercial Properties NV, (2) | | | 13,454 | |
| | |
| | 3,375 | | | Federal Realty Investment Trust | | | 427,106 | |
| | |
| | 87,408 | | | Fortune REIT, (2) | | | 102,607 | |
| | |
| | 43,925 | | | Frasers Centrepoint Trust, (2) | | | 71,182 | |
| | |
| | 35 | | | Fukuoka REIT Corp, (2) | | | 55,489 | |
| | |
| | 169 | | | GGP, Inc. | | | 3,453 | |
| | |
| | 96,515 | | | IGB Real Estate Investment Trust, (2) | | | 41,543 | |
| | |
| | 34 | | | Kenedix Retail REIT Corporation, (2) | | | 75,122 | |
| | |
| | 2,879 | | | Klepierre, (2) | | | 108,173 | |
| | |
| | 41,146 | | | Link REIT, (2) | | | 375,226 | |
| | |
| | 1,830 | | | Macerich Company | | | 103,999 | |
| | |
| | 27,434 | | | Mapletree Commercial Trust, (2) | | | 31,612 | |
| | |
| | 1,370 | | | Realty Income Corporation | | | 73,692 | |
| | |
| | 3,741 | | | Regency Centers Corporation | | | 232,241 | |
| | |
| | 5,228 | | | Scentre Group, (2) | | | 16,986 | |
| | |
| | 2,559 | | | Shaftesbury PLC, (2) | | | 31,559 | |
| | |
| | 4,762 | | | Simon Property Group, Inc. | | | 810,445 | |
| | |
| | 2,522 | | | Spirit Realty Capital Inc. | | | 20,252 | |
| | |
| | 914 | | | Taubman Centers Inc. | | | 53,707 | |
| | |
| | 1,079 | | | Unibail-Rodamco-Westfield | | | 237,584 | |
| | |
| | 2,449 | | | Urban Edge Properties | | | 56,009 | |
37
Nuveen Global Real Estate Securities Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Retail (continued) | | | |
| | |
| | 23,266 | | | Viva Energy REIT, (2) | | $ | 38,701 | |
| | | | Total Retail | | | 3,141,961 | |
| | |
| | | | Specialized – 8.4% | | | |
| | |
| | 51 | | | American Tower Corporation, REIT | | | 7,353 | |
| | |
| | 1,795 | | | ARGAN SA | | | 88,250 | |
| | |
| | 2,234 | | | Big Yellow Group PLC, (2) | | | 28,005 | |
| | |
| | 2,649 | | | CatchMark Timber Trust Inc., Class A | | | 33,722 | |
| | |
| | 516 | | | Coresite Realty Corporation | | | 57,183 | |
| | |
| | 4,833 | | | CubeSmart | | | 155,719 | |
| | |
| | 3,612 | | | Digital Realty Trust Inc. | | | 403,027 | |
| | |
| | 912 | | | Equinix Inc. | | | 392,060 | |
| | |
| | 979 | | | Extra Space Storage Inc. | | | 97,714 | |
| | |
| | 802 | | | Four Corners Property Trust, Inc. | | | 19,753 | |
| | |
| | 1,201 | | | Gaming and Leisure Properties Inc. | | | 42,996 | |
| | |
| | 480 | | | Iron Mountain Inc. | | | 16,805 | |
| | |
| | 136,026 | | | Keppel DC REIT, (2) | | | 135,532 | |
| | |
| | 705 | | | Life Storage, Inc. | | | 68,604 | |
| | |
| | 1,826 | | | Public Storage, Inc. | | | 414,246 | |
| | |
| | 12,585 | | | Safestore Holdings PLC, (2) | | | 91,000 | |
| | |
| | 697 | | | SBA Communications Corporation, (3) | | | 115,089 | |
| | | | Total Specialized | | | 2,167,058 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $17,687,829) | | | 18,472,754 | |
| | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | COMMON STOCKS – 25.8% | | | | |
| | |
| | | | Diversified Telecommunication Services – 1.0% | | | |
| | |
| | 6,938 | | | Cellnex Telecom S.A.U, (2), (3) | | $ | 174,432 | |
| | |
| | 10,975 | | | Infrastrutture Wireless Italiane SpA, (2) | | | 84,446 | |
| | | | Total Diversified Telecommunication Services | | | 258,878 | |
| | |
| | | | Hotels, Restaurants & Leisure – 1.9% | | | |
| | |
| | 2,637 | | | Accor SA, (2) | | | 129,149 | |
| | |
| | 1,891 | | | Hilton Worldwide Holdings Inc. | | | 149,692 | |
| | |
| | 836 | | | Hyatt Hotels Corporation, Class A | | | 64,497 | |
| | |
| | 824 | | | Marriott International, Inc., Class A | | | 104,318 | |
| | |
| | 1,985 | | | Pandox AB, (2) | | | 33,652 | |
| | |
| | 1,437 | | | Shangri-La Asia Ltd, (2) | | | 2,692 | |
| | | | Total Hotels, Restaurants & Leisure | | | 484,000 | |
| | |
| | | | Industrial Conglomerates – 0.5% | | | |
| | |
| | 107 | | | Hopewell Holdings Ltd, (2) | | | 366 | |
38
| | | | | | | | |
| | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Industrial Conglomerates (continued) | | | |
| | |
| | 8,160 | | | Seibu Holdings Inc., (2) | | $ | 137,412 | |
| | | | Total Industrial Conglomerates | | | 137,778 | |
| | |
| | | | IT Services – 0.4% | | | |
| | |
| | 1,795 | | | Interxion Holdings NV, (3) | | | 112,044 | |
| | |
| | | | Real Estate Management & Development – 21.0% | | | |
| | |
| | 241 | | | ADO Properties S.A, (2) | | | 13,100 | |
| | |
| | 5,970 | | | Aroundtown SA, (2) | | | 49,075 | |
| | |
| | 9,820 | | | Capitaland Limited, (2) | | | 22,728 | |
| | |
| | 20,216 | | | China Resources Land Limited, (2) | | | 67,907 | |
| | |
| | 22,622 | | | City Developments Limited, (2) | | | 181,200 | |
| | |
| | 67,968 | | | CK Asset Holdings Ltd, (2) | | | 538,056 | |
| | |
| | 2,413 | | | Deutsche Wohnen Ag, (2) | | | 116,533 | |
| | |
| | 8,626 | | | Entra ASA, (2) | | | 117,565 | |
| | |
| | 2,241 | | | Essential Properties Realty Trust Inc., (3) | | | 30,343 | |
| | |
| | 7,011 | | | Fabege AB, (2) | | | 83,388 | |
| | |
| | 21,214 | | | Hang Lung Properties Ltd, (2) | | | 43,575 | |
| | |
| | 12,898 | | | Hemfosa Fastigheter AB, (2) | | | 150,653 | |
| | |
| | 38,379 | | | Hulic Company Limited, (2) | | | 409,622 | |
| | |
| | 446 | | | Hysan Development Company, (2) | | | 2,489 | |
| | |
| | 12,263 | | | Keihanshin Building Co Ltd, (2) | | | 101,135 | |
| | |
| | 16,648 | | | Kenedix Inc., (2) | | | 101,005 | |
| | |
| | 66,090 | | | Land & Houses PCL | | | 22,542 | |
| | |
| | 2,566 | | | LEG Immobilien AG, (2) | | | 278,754 | |
| | |
| | 10,057 | | | Longfor Properties Company Limited, (2) | | | 27,040 | |
| | |
| | 20,331 | | | Mitsui Fudosan Co., Ltd, (2) | | | 489,739 | |
| | |
| | 25,600 | | | New World Development Company, Limited, (2) | | | 35,812 | |
| | |
| | 14,760 | | | Parque Arauco SA | | | 41,520 | |
| | |
| | 28,093 | | | Platzer Fastigheter Holding AB | | | 183,486 | |
| | |
| | 588 | | | PSP Swiss Property AG, (2) | | | 54,511 | |
| | |
| | 5,005 | | | Sagax AB | | | 62,026 | |
| | |
| | 62,697 | | | Sirius Real Estate Ltd | | | 51,633 | |
| | |
| | 17,025 | | | Sumitomo Realty & Development Company Limited, (2) | | | 626,945 | |
| | |
| | 32,010 | | | Sun Hung Kai Properties Limited, (2) | | | 482,261 | |
| | |
| | 15,408 | | | UOL Group Ltd, (2) | | | 86,045 | |
| | |
| | 4,439 | | | VIB Vermoegen AG | | | 113,527 | |
| | |
| | 16,973 | | | Vonovia SE, (2) | | | 806,716 | |
| | | | Total Real Estate Management & Development | | | 5,390,931 | |
| | |
| | | | Road & Rail – 1.0% | | | |
| | |
| | 3,522 | | | Kyushu Railway Company, (2) | | | 107,687 | |
| | |
| | 19,245 | | | MTR Corporation, (2) | | | 106,303 | |
39
Nuveen Global Real Estate Securities Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | |
| | |
| Shares | | | Description (1) | | Value | |
| | |
| | | | Road & Rail (continued) | | | |
| | |
| | 2,221 | | | Tokyu Corp | | $ | 38,275 | |
| | | | Total Road & Rail | | | 252,265 | |
| | | | Total Common Stocks (cost $6,807,164) | | | 6,635,896 | |
| | | | Total Long-Term Investments (cost $24,494,993) | | | 25,108,650 | |
| | | | Other Assets Less Liabilities – 2.5% | | | 632,247 | |
| | | | Net Assets – 100% | | $ | 25,740,897 | |
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) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| REIT | Real Estate Investment Trust |
| WI/DD | Purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
40
Nuveen Real Asset Income Fund
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | | | | | |
| | | | LONG-TERM INVESTMENTS – 97.9% | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 23.1% | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | Diversified – 3.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 190,925 | | | AEW UK REIT PLC | | | | | | | | | | | | | | | | | | | | | | $ | 246,934 | |
| | | | | | | |
| | 555,328 | | | Armada Hoffler Properties Inc. | | | | | | | | | | | | | | | | | | | | | | | 8,274,387 | |
| | | | | | | |
| | 331,876 | | | Artis Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 3,309,546 | |
| | | | | | | |
| | 59,351 | | | Cofinimmo, SANV | | | | | | | | | | | | | | | | | | | | | | | 7,319,146 | |
| | | | | | | |
| | 427,272 | | | Dream Global Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 4,667,117 | |
| | | | | | | |
| | 1,424,156 | | | Fibra Uno Administracion SA | | | | | | | | | | | | | | | | | | | | | | | 2,075,972 | |
| | | | | | | |
| | 51,303 | | | Fonciere Des Regions, Reg S, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,330,537 | |
| | | | | | | |
| | 686,622 | | | Growthpoint Properties Australia Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,832,801 | |
| | | | | | | |
| | 86,852 | | | Hamborner REIT AG, (2) | | | | | | | | | | | | | | | | | | | | | | | 921,293 | |
| | | | | | | |
| | 104,366 | | | ICADE, (2) | | | | | | | | | | | | | | | | | | | | | | | 9,775,794 | |
| | | | | | | |
| | 27,130 | | | Lar Espana Real Estate Socimi SA, (2), (12) | | | | | | | | | | | | | | | | | | | | | | | 302,483 | |
| | | | | | | |
| | 108,298 | | | Lexington Corporate Properties Trust | | | | | | | | | | | | | | | | | | | | | | | 945,442 | |
| | | | | | | |
| | 1,853,038 | | | Mapletree Greater China Commercial Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,551,052 | |
| | | | | | | |
| | 695,790 | | | Mirvac Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,116,749 | |
| | | | | | | |
| | 2,213,321 | | | Nexus Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 3,333,492 | |
| | | | | | | |
| | 112,211 | | | NSI NV | | | | | | | | | | | | | | | | | | | | | | | 4,704,336 | |
| | | | | | | |
| | 67,486 | | | Secure Income REIT Plc | | | | | | | | | | | | | | | | | | | | | | | 342,008 | |
| | | | | | | |
| | 4,600 | | | Star Asia Investment Corp, (2) | | | | | | | | | | | | | | | | | | | | | | | 4,562,417 | |
| | | | | | | |
| | 92,940 | | | Stride Property Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 115,181 | |
| | | | | | | |
| | 423,568 | | | VEREIT, Inc. | | | | | | | | | | | | | | | | | | | | | | | 3,151,346 | |
| | | | Total Diversified | | | | | | | | | | | | | | | | | | | | | | | 63,878,033 | |
| | | | | | | |
| | | | Health Care – 4.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,537,022 | | | Assura PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,167,418 | |
| | | | | | | |
| | 399,606 | | | Health Care Property Investors Inc. | | | | | | | | | | | | | | | | | | | | | | | 10,317,827 | |
| | | | | | | |
| | 504,324 | | | MedEquities Realty Trust, Inc. | | | | | | | | | | | | | | | | | | | | | | | 5,557,650 | |
| | | | | | | |
| | 644,170 | | | Medical Properties Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 9,044,147 | |
| | | | | | | |
| | 630,934 | | | NorthWest Healthcare Properties REIT | | | | | | | | | | | | | | | | | | | | | | | 5,418,358 | |
| | | | | | | |
| | 3,591,248 | | | Parkway Life Real Estate Investment Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 7,161,839 | |
| | | | | | | |
| | 914,820 | | | Physicians Realty Trust | | | | | | | | | | | | | | | | | | | | | | | 14,582,231 | |
| | | | | | | |
| | 399,695 | | | Sabra Health Care Real Estate Investment Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 8,685,372 | |
| | | | | | | |
| | 4,030,748 | | | Target Healthcare REIT Ltd | | | | | | | | | | | | | | | | | | | | | | | 5,878,138 | |
| | | | | | | |
| | 335,621 | | | Ventas Inc. | | | | | | | | | | | | | | | | | | | | | | | 19,113,616 | |
| | | | Total Health Care | | | | | | | | | | | | | | | | | | | | | | | 86,926,596 | |
41
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | | | | | |
| | | | Hotels & Resorts – 1.9% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 515,667 | | | American Hotel Income Properties REIT LP | | | | | | | | | | | | | | | | | | | | | | $ | 3,263,492 | |
| | | | | | | |
| | 495,055 | | | Apple Hospitality REIT, Inc. | | | | | | | | | | | | | | | | | | | | | | | 8,851,583 | |
| | | | | | | |
| | 5,225,264 | | | Concentradora Fibra Hotelera Mexicana SA de CV | | | | | | | | | | | | | | | | | | | | | | | 3,038,824 | |
| | | | | | | |
| | 1,862 | | | Invincible Investment Corporation, (2) | | | | | | | | | | | | | | | | | | | | | | | 837,858 | |
| | | | | | | |
| | 43,069 | | | LaSalle Hotel Properties | | | | | | | | | | | | | | | | | | | | | | | 1,474,252 | |
| | | | | | | |
| | 382,280 | | | MGM Growth Properties LLC | | | | | | | | | | | | | | | | | | | | | | | 11,644,249 | |
| | | | | | | |
| | 161,966 | | | Park Hotels & Resorts, Inc. | | | | | | | | | | | | | | | | | | | | | | | 4,961,019 | |
| | | | | | | |
| | 17,032 | | | RLJ Lodging Trust | | | | | | | | | | | | | | | | | | | | | | | 375,556 | |
| | | | | | | |
| | 319,067 | | | Summit Hotel Properties Inc. | | | | | | | | | | | | | | | | | | | | | | | 4,565,849 | |
| | | | Total Hotels & Resorts | | | | | | | | | | | | | | | | | | | | | | | 39,012,682 | |
| | | | | | | |
| | | | Industrial – 5.9% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 969,889 | | | Centuria Industrial REIT, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,846,508 | |
| | | | | | | |
| | 933,793 | | | Dream Industrial Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 7,330,273 | |
| | | | | | | |
| | 20,147,944 | | | Frasers Logistics & Industrial Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 15,497,458 | |
| | | | | | | |
| | 102,958 | | | Gramercy Property Trust | | | | | | | | | | | | | | | | | | | | | | | 2,812,813 | |
| | | | | | | |
| | 103,988 | | | Granite Real Estate, Inc. | | | | | | | | | | | | | | | | | | | | | | | 4,241,309 | |
| | | | | | | |
| | 4,403,677 | | | Mapletree Industrial Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 6,231,592 | |
| | | | | | | |
| | 23,308,092 | | | Mapletree Logistics Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 21,007,801 | |
| | | | | | | |
| | 3,394,685 | | | Propertylink Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,663,119 | |
| | | | | | | |
| | 952,744 | | | STAG Industrial Inc. | | | | | | | | | | | | | | | | | | | | | | | 25,943,219 | |
| | | | | | | |
| | 2,046,829 | | | Summit Industrial Income REIT | | | | | | | | | | | | | | | | | | | | | | | 13,638,780 | |
| | | | | | | |
| | 4,662,501 | | | TF Administradora Industrial S de RL de CV | | | | | | | | | | | | | | | | | | | | | | | 6,362,144 | |
| | | | | | | |
| | 1,063,381 | | | Tritax Big Box REIT PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,184,428 | |
| | | | | | | |
| | 676,144 | | | WPT Industrial Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 9,391,640 | |
| | | | Total Industrial | | | | | | | | | | | | | | | | | | | | | | | 119,151,084 | |
| | | | | | | |
| | | | Mortgage – 1.9% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 423,277 | | | Blackstone Mortgage Trust Inc., Class A | | | | | | | | | | | | | | | | | | | | | | | 13,303,596 | |
| | | | | | | |
| | 81,769 | | | Granite Point Mortgage Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 1,500,461 | |
| | | | | | | |
| | 361,964 | | | KKR Real Estate Finance Trust, Inc. | | | | | | | | | | | | | | | | | | | | | | | 7,159,648 | |
| | | | | | | |
| | 459,003 | | | Starwood Property Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 9,964,955 | |
| | | | | | | |
| | 305,142 | | | TPG Re Finance Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 6,200,485 | |
| | | | Total Mortgage | | | | | | | | | | | | | | | | | | | | | | | 38,129,145 | |
| | | | | | | |
| | | | Office – 1.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,531,908 | | | Centuria Metropolitan REIT | | | | | | | | | | | | | | | | | | | | | | | 2,811,548 | |
| | | | | | | |
| | 624,471 | | | City Office REIT, Inc. | | | | | | | | | | | | | | | | | | | | | | | 8,011,963 | |
| | | | | | | |
| | 571 | | | Dexus Property Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 4,104 | |
| | | | | | | |
| | 305,855 | | | Easterly Government Properties, Inc. | | | | | | | | | | | | | | | | | | | | | | | 6,043,695 | |
| | | | | | | |
| | 2,393,236 | | | GDI Property Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,285,733 | |
| | | | | | | |
| | 92,350 | | | Inovalis Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 709,493 | |
42
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | | | | | |
| | | | Office (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 532,677 | | | Slate Office REIT | | | | | | | | | | | | | | | | | | | | | | $ | 3,087,513 | |
| | | | Total Office | | | | | | | | | | | | | | | | | | | | | | | 22,954,049 | |
| | | | | | | |
| | | | Residential – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,065 | | | American Campus Communities Inc. | | | | | | | | | | | | | | | | | | | | | | | 45,667 | |
| | | | | | | |
| | 5,724 | | | Education Realty Trust Inc. | | | | | | | | | | | | | | | | | | | | | | | 237,546 | |
| | | | | | | |
| | 99,416 | | | Independence Realty Trust | | | | | | | | | | | | | | | | | | | | | | | 1,024,979 | |
| | | | | | | |
| | 8,718 | | | Investors Real Estate Trust | | | | | | | | | | | | | | | | | | | | | | | 48,211 | |
| | | | | | | |
| | 317,255 | | | Northview Apartment Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 6,341,963 | |
| | | | Total Residential | | | | | | | | | | | | | | | | | | | | | | | 7,698,366 | |
| | | | | | | |
| | | | Retail – 3.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 270,721 | | | CT Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 2,656,449 | |
| | | | | | | |
| | 22,819 | | | Eurocommercial Properties NV, (2) | | | | | | | | | | | | | | | | | | | | | | | 968,501 | |
| | | | | | | |
| | 8,904,226 | | | Fortune REIT, (2) | | | | | | | | | | | | | | | | | | | | | | | 10,452,587 | |
| | | | | | | |
| | 5,622,816 | | | Frasers Centrepoint Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 9,112,008 | |
| | | | | | | |
| | 11,849,711 | | | IGB Real Estate Investment Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,100,448 | |
| | | | | | | |
| | 160,046 | | | Immobiliare Grande Distribuzione SIIQ SpA | | | | | | | | | | | | | | | | | | | | | | | 1,286,258 | |
| | | | | | | |
| | 304 | | | Kenedix Retail REIT Corporation, (2) | | | | | | | | | | | | | | | | | | | | | | | 671,675 | |
| | | | | | | |
| | 43,790 | | | Klepierre, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,645,327 | |
| | | | | | | |
| | 176,239 | | | Macerich Company | | | | | | | | | | | | | | | | | | | | | | | 10,015,662 | |
| | | | | | | |
| | 5,074,548 | | | Mapletree Commercial Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,847,425 | |
| | | | | | | |
| | 41,410 | | | NewRiver REIT PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 147,236 | |
| | | | | | | |
| | 1,811 | | | Realty Income Corporation | | | | | | | | | | | | | | | | | | | | | | | 97,414 | |
| | | | | | | |
| | 2,721 | | | Scentre Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 8,841 | |
| | | | | | | |
| | 24,707 | | | Simon Property Group, Inc. | | | | | | | | | | | | | | | | | | | | | | | 4,204,884 | |
| | | | | | | |
| | 334,238 | | | Spirit Realty Capital Inc. | | | | | | | | | | | | | | | | | | | | | | | 2,683,931 | |
| | | | | | | |
| | 22,080 | | | Unibail-Rodamco-Westfield | | | | | | | | | | | | | | | | | | | | | | | 4,861,766 | |
| | | | | | | |
| | 21,485 | | | Vicinity Centres, (2) | | | | | | | | | | | | | | | | | | | | | | | 41,204 | |
| | | | | | | |
| | 2,108,957 | | | Viva Energy REIT, (2) | | | | | | | | | | | | | | | | | | | | | | | 3,508,047 | |
| | | | Total Retail | | | | | | | | | | | | | | | | | | | | | | | 63,309,663 | |
| | | | | | | |
| | | | Specialized – 1.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 249,045 | | | Automotive Properties Real Estate Investment Trust | | | | | | | | | | | | | | | | | | | | | | | 1,977,735 | |
| | | | | | | |
| | 201,488 | | | Gaming and Leisure Properties Inc. | | | | | | | | | | | | | | | | | | | | | | | 7,213,270 | |
| | | | | | | |
| | 73,582 | | | Iron Mountain Inc. | | | | | | | | | | | | | | | | | | | | | | | 2,576,106 | |
| | | | | | | |
| | 96,251 | | | Jernigan Capital Inc. | | | | | | | | | | | | | | | | | | | | | | | 1,834,544 | |
| | | | | | | |
| | 9,925,612 | | | Keppel DC REIT, (2) | | | | | | | | | | | | | | | | | | | | | | | 9,889,530 | |
| | | | | | | |
| | 1,763,284 | | | National Storage REIT, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,146,862 | |
| | | | Total Specialized | | | | | | | | | | | | | | | | | | | | | | | 25,638,047 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $442,006,129) | | | | | | | | | | | | | | | | | | | | | | | 466,697,665 | |
43
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Shares | | | Description (1) | | Coupon | | | | | | | | | | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | $25 PAR (OR SIMILAR) RETAIL PREFERRED – 17.9% | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | Electric Utilities – 3.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 286,541 | | | Brookfield Infrastructure Partners LP | | | 5.350% | | | | | | | | | | | | | | | | BBB– | | | $ | 5,634,264 | |
| | | | | | | |
| | 207,775 | | | Entergy Arkansas Inc. | | | 4.875% | | | | | | | | | | | | | | | | A | | | | 5,078,021 | |
| | | | | | | |
| | 83,721 | | | Entergy Louisiana LLC | | | 4.875% | | | | | | | | | | | | | | | | A | | | | 2,039,444 | |
| | | | | | | |
| | 31,818 | | | Entergy Texas Inc. | | | 5.625% | | | | | | | | | | | | | | | | A | | | | 826,313 | |
| | | | | | | |
| | 356,817 | | | Georgia Power Company | | | 5.000% | | | | | | | | | | | | | | | | Baa1 | | | | 8,777,698 | |
| | | | | | | |
| | 343,355 | | | Integrys Energy Group Inc., (2) | | | 6.000% | | | | | | | | | | | | | | | | Baa1 | | | | 9,013,069 | |
| | | | | | | |
| | 268,743 | | | NextEra Energy Inc. | | | 5.250% | | | | | | | | | | | | | | | | BBB | | | | 6,740,074 | |
| | | | | | | |
| | 143,662 | | | NextEra Energy Inc. | | | 5.000% | | | | | | | | | | | | | | | | BBB | | | | 3,600,170 | |
| | | | | | | |
| | 42,823 | | | PPL Capital Funding, Inc. | | | 5.900% | | | | | | | | | | | | | | | | BBB | | | | 1,085,991 | |
| | | | | | | |
| | 379,236 | | | Southern Company | | | 5.250% | | | | | | | | | | | | | | | | BBB | | | | 9,499,862 | |
| | | | | | | |
| | 393,290 | | | Southern Company | | | 5.250% | | | | | | | | | | | | | | | | BBB | | | | 9,674,934 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | | | | | | | | | | | 61,969,840 | |
| | | | | | | |
| | | | Equity Real Estate Investment Trusts – 11.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 260,465 | | | American Homes 4 Rent | | | 6.350% | | | | | | | | | | | | | | | | N/R | | | | 6,545,485 | |
| | | | | | | |
| | 215,431 | | | American Homes 4 Rent | | | 5.875% | | | | | | | | | | | | | | | | BB | | | | 5,295,294 | |
| | | | | | | |
| | 92,041 | | | American Homes 4 Rent | | | 6.500% | | | | | | | | | | | | | | | | N/R | | | | 2,333,239 | |
| | | | | | | |
| | 217,137 | | | American Homes 4 Rent | | | 5.875% | | | | | | | | | | | | | | | | BB | | | | 5,233,002 | |
| | | | | | | |
| | 302,162 | | | CBL & Associates Properties Inc. | | | 7.375% | | | | | | | | | | | | | | | | BB– | | | | 5,816,619 | |
| | | | | | | |
| | 66,488 | | | Cedar Shopping Centers Inc., Series A | | | 7.250% | | | | | | | | | | | | | | | | N/R | | | | 1,550,500 | |
| | | | | | | |
| | 279,471 | | | Cedar Shopping Centers Inc., Series A | | | 6.500% | | | | | | | | | | | | | | | | N/R | | | | 5,952,732 | |
| | | | | | | |
| | 444,146 | | | City Office REIT, Inc. | | | 6.625% | | | | | | | | | | | | | | | | N/R | | | | 10,806,072 | |
| | | | | | | |
| | 57,174 | | | Colony Capital Inc. | | | 7.500% | | | | | | | | | | | | | | | | N/R | | | | 1,386,469 | |
| | | | | | | |
| | 11,888 | | | Colony Capital Inc. | | | 7.150% | | | | | | | | | | | | | | | | N/R | | | | 275,207 | |
| | | | | | | |
| | 158,308 | | | Colony Capital Inc. | | | 7.125% | | | | | | | | | | | | | | | | N/R | | | | 3,680,661 | |
| | | | | | | |
| | 309,263 | | | Colony Capital Inc. | | | 7.125% | | | | | | | | | | | | | | | | N/R | | | | 7,147,068 | |
| | | | | | | |
| | 66,742 | | | DDR Corporation | | | 6.500% | | | | | | | | | | | | | | | | Ba1 | | | | 1,600,473 | |
| | | | | | | |
| | 313,487 | | | DDR Corporation | | | 6.375% | | | | | | | | | | | | | | | | BB+ | | | | 7,711,780 | |
| | | | | | | |
| | 218,769 | | | Digital Realty Trust Inc. | | | 5.250% | | | | | | | | | | | | | | | | Baa3 | | | | 5,228,579 | |
| | | | | | | |
| | 231,776 | | | EPR Properties Inc. | | | 5.750% | | | | | | | | | | | | | | | | Baa3 | | | | 5,423,558 | |
| | | | | | | |
| | 88,371 | | | Farmland Partners, Inc. | | | 6.000% | | | | | | | | | | | | | | | | N/R | | | | 2,159,787 | |
| | | | | | | |
| | 153,288 | | | GGP, Inc. | | | 6.375% | | | | | | | | | | | | | | | | N/R | | | | 3,678,912 | |
| | | | | | | |
| | 70,824 | | | Gladstone Commercial Corporation | | | 7.000% | | | | | | | | | | | | | | | | N/R | | | | 1,804,596 | |
| | | | | | | |
| | 180,780 | | | Gramercy Property Trust | | | 7.125% | | | | | | | | | | | | | | | | BB+ | | | | 4,564,695 | |
| | | | | | | |
| | 164,587 | | | Hersha Hospitality Trust | | | 6.875% | | | | | | | | | | | | | | | | N/R | | | | 4,065,299 | |
| | | | | | | |
| | 319,201 | | | Hersha Hospitality Trust | | | 6.500% | | | | | | | | | | | | | | | | N/R | | | | 7,654,440 | |
| | | | | | | |
| | 495,644 | | | Hersha Hospitality Trust | | | 6.500% | | | | | | | | | | | | | | | | N/R | | | | 11,870,674 | |
| | | | | | | |
| | 375,281 | | | Investors Real Estate Trust | | | 6.625% | | | | | | | | | | | | | | | | N/R | | | | 9,134,340 | |
| | | | | | | |
| | 184,206 | | | Kimco Realty Corporation,. | | | 5.250% | | | | | | | | | | | | | | | | Baa2 | | | | 4,139,109 | |
| | | | | | | |
| | 1,966 | | | Kimco Realty Corporation | | | 5.500% | | | | | | | | | | | | | | | | Baa2 | | | | 46,673 | |
44
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Shares | | | Description (1) | | Coupon | | | | | | | | | | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Equity Real Estate Investment Trusts (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,749 | | | Kimco Realty Corporation | | | 5.125% | | | | | | | | | | | | | | | | Baa2 | | | $ | 40,070 | |
| | | | | | | |
| | 36 | | | LaSalle Hotel Properties | | | 6.375% | | | | | | | | | | | | | | | | N/R | | | | 900 | |
| | | | | | | |
| | 248,017 | | | LaSalle Hotel Properties | | | 6.300% | | | | | | | | | | | | | | | | N/R | | | | 6,138,421 | |
| | | | | | | |
| | 6,413 | | | Mid-America Apartment Communities Inc. | | | 8.500% | | | | | | | | | | | | | | | | BBB– | | | | 403,891 | |
| | | | | | | |
| | 424,933 | | | Monmouth Real Estate Investment Corp | | | 6.125% | | | | | | | | | | | | | | | | N/R | | | | 10,198,392 | |
| | | | | | | |
| | 89,271 | | | National Retail Properties Inc. | | | 5.200% | | | | | | | | | | | | | | | | Baa2 | | | | 2,078,229 | |
| | | | | | | |
| | 336,191 | | | Pebblebrook Hotel Trust | | | 6.500% | | | | | | | | | | | | | | | | N/R | | | | 8,572,870 | |
| | | | | | | |
| | 252,091 | | | Pebblebrook Hotel Trust | | | 6.375% | | | | | | | | | | | | | | | | N/R | | | | 6,413,195 | |
| | | | | | | |
| | 146,704 | | | Penn Real Estate Investment Trust | | | 6.875% | | | | | | | | | | | | | | | | N/R | | | | 3,249,494 | |
| | | | | | | |
| | 186,384 | | | PS Business Parks, Inc. | | | 5.200% | | | | | | | | | | | | | | | | Baa2 | | | | 4,357,658 | |
| | | | | | | |
| | 144,845 | | | PS Business Parks, Inc. | | | 5.250% | | | | | | | | | | | | | | | | BBB | | | | 3,447,311 | |
| | | | | | | |
| | 159 | | | Public Storage, Inc. | | | 5.050% | | | | | | | | | | | | | | | | A3 | | | | 3,929 | |
| | | | | | | |
| | 830 | | | Rexford Industrial Realty Inc. | | | 5.875% | | | | | | | | | | | | | | | | BB | | | | 20,136 | |
| | | | | | | |
| | 102,441 | | | Saul Centers, Inc. | | | 6.125% | | | | | | | | | | | | | | | | N/R | | | | 2,353,070 | |
| | | | | | | |
| | 10,424 | | | Senior Housing Properties Trust | | | 6.250% | | | | | | | | | | | | | | | | BBB– | | | | 268,105 | |
| | | | | | | |
| | 122,135 | | | STAG Industrial Inc. | | | 6.875% | | | | | | | | | | | | | | | | BB+ | | | | 3,135,205 | |
| | | | | | | |
| | 107,803 | | | Summit Hotel Properties Inc. | | | 6.450% | | | | | | | | | | | | | | | | N/R | | | | 2,609,911 | |
| | | | | | | |
| | 337,422 | | | Summit Hotel Properties Inc. | | | 6.250% | | | | | | | | | | | | | | | | N/R | | | | 8,131,870 | |
| | | | | | | |
| | 54,447 | | | Sunstone Hotel Investors Inc. | | | 6.950% | | | | | | | | | | | | | | | | N/R | | | | 1,383,498 | |
| | | | | | | |
| | 235,186 | | | Sunstone Hotel Investors Inc. | | | 6.450% | | | | | | | | | | | | | | | | N/R | | | | 5,931,391 | |
| | | | | | | |
| | 52,816 | | | Taubman Centers Incorporated, Series K | | | 6.250% | | | | | | | | | | | | | | | | N/R | | | | 1,307,196 | |
| | | | | | | |
| | 141,182 | | | UMH Properties Inc. | | | 8.000% | | | | | | | | | | | | | | | | N/R | | | | 3,734,264 | |
| | | | | | | |
| | 347,762 | | | UMH Properties Inc. | | | 6.750% | | | | | | | | | | | | | | | | N/R | | | | 8,822,722 | |
| | | | | | | |
| | 118,444 | | | Urstadt Biddle Properties | | | 6.750% | | | | | | | | | | | | | | | | N/R | | | | 2,983,604 | |
| | | | | | | |
| | 170,975 | | | Urstadt Biddle Properties | | | 6.250% | | | | | | | | | | | | | | | | N/R | | | | 4,265,826 | |
| | | | | | | |
| | 90,472 | | | Ventas Realty LP | | | 5.450% | | | | | | | | | | | | | | | | BBB+ | | �� | | 2,266,324 | |
| | | | | | | |
| | 399,481 | | | Vornado Realty Trust. | | | 5.250% | | | | | | | | | | | | | | | | BBB– | | | | 9,271,954 | |
| | | | | | | |
| | 43,492 | | | Washington Prime Group, Inc. | | | 6.875% | | | | | | | | | | | | | | | | Ba1 | | | | 929,424 | |
| | | | Total Equity Real Estate Investment Trusts | | | | | | | | | | | | | | | | | | | | | | | 227,424,123 | |
| | | | | | | |
| | | | Independent Power & Renewable Electricity Producers – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 156,528 | | | Brookfield Renewable Partners | | | 5.750% | | | | | | | | | | | | | | | | BBB– | | | | 3,065,908 | |
| | | | | | | |
| | | | Multi-Utilities – 1.8% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 597,648 | | | Dominion Energy, Inc. | | | 5.250% | | | | | | | | | | | | | | | | BBB– | | | | 14,785,812 | |
| | | | | | | |
| | 179,518 | | | DTE Energy Company | | | 5.250% | | | | | | | | | | | | | | | | Baa2 | | | | 4,417,938 | |
| | | | | | | |
| | 242,201 | | | DTE Energy Company | | | 6.000% | | | | | | | | | | | | | | | | Baa2 | | | | 6,391,684 | |
| | | | | | | |
| | 326,600 | | | DTE Energy Company | | | 5.375% | | | | | | | | | | | | | | | | Baa2 | | | | 8,243,384 | |
| | | | | | | |
| | 67,556 | | | DTE Energy Company | | | 5.250% | | | | | | | | | | | | | | | | Baa2 | | | | 1,676,740 | |
| | | | Total Multi-Utilities | | | | | | | | | | | | | | | | | | | | | | | 35,515,558 | |
45
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Shares | | | Description (1) | | Coupon | | | | | | | | | | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels – 1.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 48,498 | | | Enbridge Inc. | | | 4.000% | | | | | | | | | | | | | | | | BBB– | | | $ | 1,156,677 | |
| | | | | | | |
| | 74,628 | | | Enbridge Inc. | | | 0.406% | | | | | | | | | | | | | | | | BBB– | | | | 1,879,133 | |
| | | | | | | |
| | 184,164 | | | NGL Energy Partner LP | | | 9.000% | | | | | | | | | | | | | | | | N/R | | | | 4,534,118 | |
| | | | | | | |
| | 531,056 | | | Nustar Energy LP | | | 8.500% | | | | | | | | | | | | | | | | B1 | | | | 12,442,642 | |
| | | | | | | |
| | 125,635 | | | Nustar Energy LP | | | 7.625% | | | | | | | | | | | | | | | | B1 | | | | 2,586,825 | |
| | | | | | | |
| | 151,989 | | | Pembina Pipeline Corporation | | | 5.750% | | | | | | | | | | | | | | | | BB+ | | | | 3,040,589 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | | | | | | | | | | | | 25,639,984 | |
| | | | | | | |
| | | | Real Estate Management & Development – 0.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 279,047 | | | Landmark Infrastructure Partners LP | | | 8.000% | | | | | | | | | | | | | | | | N/R | | | | 6,878,509 | |
| | | | Total $25 Par (or similar) Retail Preferred (cost $367,058,126) | | | | | | | | | | | | | | | | | | | | | | | 360,493,922 | |
| | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | | | | | |
| | | | COMMON STOCKS – 17.1% | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | Air Freight & Logistics – 0.6% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 295,090 | | | BPost SA | | | | | | | | | | | | | | | | | | | | | | $ | 4,662,521 | |
| | | | | | | |
| | 156,488 | | | Oesterreichische Post AG, (2) | | | | | | | | | | | | | | | | | | | | | | | 7,131,505 | |
| | | | Total Air Freight & Logistics | | | | | | | | | | | | | | | | | | | | | | | 11,794,026 | |
| | | | | | | |
| | | | Commercial Services & Supplies – 0.0% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,293 | | | Covanta Holding Corporation | | | | | | | | | | | | | | | | | | | | | | | 54,334 | |
| | | | | | | |
| | | | Diversified Telecommunication Services – 1.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,096,680 | | | HKBN Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 6,301,734 | |
| | | | | | | |
| | 4,498,317 | | | HKT Trust and HKT Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,761,021 | |
| | | | | | | |
| | 20,333,290 | | | Netlink NBN Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 11,043,401 | |
| | | | | | | |
| | 698,640 | | | Singapore Telecommunications Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,577,387 | |
| | | | Total Diversified Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | | 24,683,543 | |
| | | | | | | |
| | | | Electric Utilities – 5.8% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 7,184,349 | | | AusNet Services, (2) | | | | | | | | | | | | | | | | | | | | | | | 8,532,881 | |
| | | | | | | |
| | 8,060 | | | Brookfield Infrastructure Partners LP | | | | | | | | | | | | | | | | | | | | | | | 309,504 | |
| | | | | | | |
| | 1,432,649 | | | Contact Energy Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,671,407 | |
| | | | | | | |
| | 55,199 | | | Duke Energy Corporation, (12) | | | | | | | | | | | | | | | | | | | | | | | 4,365,137 | |
| | | | | | | |
| | 436,074 | | | Endesa S.A, (2) | | | | | | | | | | | | | | | | | | | | | | | 9,589,963 | |
| | | | | | | |
| | 2,877,611 | | | Enel SpA, (2) | | | | | | | | | | | | | | | | | | | | | | | 15,945,363 | |
| | | | | | | |
| | 713,087 | | | Enersis Chile SA | | | | | | | | | | | | | | | | | | | | | | | 3,479,865 | |
| | | | | | | |
| | 2,463,716 | | | Infratil Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,635,990 | |
| | | | | | | |
| | 832,668 | | | Power Assets Holdings Limited | | | | | | | | | | | | | | | | | | | | | | | 5,821,332 | |
| | | | | | | |
| | 288,536 | | | PPL Corporation, (12) | | | | | | | | | | | | | | | | | | | | | | | 8,237,703 | |
| | | | | | | |
| | 104,979 | | | Red Electrica Corporacion SA, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,132,754 | |
| | | | | | | |
| | 739,200 | | | Scottish and Southern Energy PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 13,195,129 | |
| | | | | | | |
| | 15,528,490 | | | Spark Infrastructure Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 26,196,716 | |
| | | | | | | |
| | 315,197 | | | Terna-Rete Elettrica Nazionale SpA, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,702,275 | |
46
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | | | | | |
| | | | Electric Utilities (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,114,859 | | | Transmissora Alianca de Energia Eletrica SA | | | | | | | | | | | | | | | | | | | | | | $ | 5,379,053 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | | | | | | | | | | | 116,195,072 | |
| | | | | | | |
| | | | Gas Utilities – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 29,632 | | | AmeriGas Partners, LP | | | | | | | | | | | | | | | | | | | | | | | 1,251,063 | |
| | | | | | | |
| | 273,089 | | | Gas Natural SDG S.A, (2), (12) | | | | | | | | | | | | | | | | | | | | | | | 7,219,335 | |
| | | | Total Gas Utilities | | | | | | | | | | | | | | | | | | | | | | | 8,470,398 | |
| | | | | | | |
| | | | Independent Power & Renewable Electricity Producers – 0.7% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 327,194 | | | Brookfield Renewable Energy Partners LP | | | | | | | | | | | | | | | | | | | | | | | 9,820,922 | |
| | | | | | | |
| | 1,464,332 | | | Meridian Energy Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 3,093,051 | |
| | | | | | | |
| | 23,981 | | | NRG Yield, Inc., Class C Shares | | | | | | | | | | | | | | | | | | | | | | | 412,473 | |
| | | | | | | |
| | 11,685 | | | Pattern Energy Group Inc. | | | | | | | | | | | | | | | | | | | | | | | 219,094 | |
| | | | Total Independent Power & Renewable Electricity Producers | | | | | | | | | | | | 13,545,540 | |
| | | | | | | |
| | | | Industrial Conglomerates – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 840,907 | | | Hopewell Holdings Ltd, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,879,620 | |
| | | | | | | |
| | | | Media – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 197,435 | | | Eutelsat Communications, (2) | | | | | | | | | | | | | | | | | | | | | | | 4,085,961 | |
| | | | | | | |
| | | | Multi-Utilities – 1.8% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 586,031 | | | Engie, (2) | | | | | | | | | | | | | | | | | | | | | | | 8,964,218 | |
| | | | | | | |
| | 127,313 | | | National Grid PLC | | | | | | | | | | | | | | | | | | | | | | | 7,110,431 | |
| | | | | | | |
| | 2,088,833 | | | Redes Energeticas Nacionais SA, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,843,671 | |
| | | | | | | |
| | 407,122 | | | Suez Environment Company, (2) | | | | | | | | | | | | | | | | | | | | | | | 5,266,534 | |
| | | | | | | |
| | 3,515,359 | | | Vector Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 8,067,439 | |
| | | | Total Multi-Utilities | | | | | | | | | | | | | | | | | | | | | | | 35,252,293 | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels – 3.9% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 82,223 | | | Enagas, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,398,136 | |
| | | | | | | |
| | 418,804 | | | Enbridge Inc. | | | | | | | | | | | | | | | | | | | | | | | 14,947,115 | |
| | | | | | | |
| | 14,366 | | | Enbridge Income Fund Holdings Inc. | | | | | | | | | | | | | | | | | | | | | | | 352,307 | |
| | | | | | | |
| | 371,763 | | | Enterprise Products Partnership LP | | | | | | | | | | | | | | | | | | | | | | | 10,286,682 | |
| | | | | | | |
| | 401,496 | | | Gibson Energy Incorporated | | | | | | | | | | | | | | | | | | | | | | | 5,353,687 | |
| | | | | | | |
| | 435,247 | | | Inter Pipeline Limited | | | | | | | | | | | | | | | | | | | | | | | 8,157,674 | |
| | | | | | | |
| | 253,095 | | | ONEOK, Inc. | | | | | | | | | | | | | | | | | | | | | | | 17,673,624 | |
| | | | | | | |
| | 46,857 | | | Plains GP Holdings LP, Class A Shares | | | | | | | | | | | | | | | | | | | | | | | 1,120,351 | |
| | | | | | | |
| | 3,592,391 | | | Snam Rete Gas S.p.A, (2) | | | | | | | | | | | | | | | | | | | | | | | 14,970,945 | |
| | | | | | | |
| | 91,781 | | | Western Gas Equity Partners LP | | | | | | | | | | | | | | | | | | | | | | | 3,281,171 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | | | | | | | | | | | | 78,541,692 | |
| | | | | | | |
| | | | Real Estate Management & Development – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 436,899 | | | Atrium European Real Estate Ltd, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,979,700 | |
| | | | | | | |
| | 39,026 | | | Brookfield Property Partners | | | | | | | | | | | | | | | | | | | | | | | 742,274 | |
| | | | | | | |
| | 308,589 | | | Essential Properties Realty Trust Inc., (12) | | | | | | | | | | | | | | | | | | | | | | | 4,178,295 | |
47
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | | | | | | | | Value | |
| | | |
| | | | Real Estate Management & Development (continued) | | | | | | | |
| | | | | | | |
| | 13,850 | | | Landmark Infrastructure Partners LP | | | | | | | | | | | | | | | | | | | | | | $ | 191,822 | |
| | | | Total Real Estate Management & Development | | | | | | | | | | | | | | | | | | | | | | | 7,092,091 | |
| | | | | | | |
| | | | Road & Rail – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 2,074,540 | | | Aurizon Holdings Limited, (2) | | | | | | | | | | | | | | | | | | | | | | | 6,634,255 | |
| | | | | | | |
| | 1,172,697 | | | Stagocoach Group PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,183,034 | |
| | | | Total Road & Rail | | | | | | | | | | | | | | | | | | | | | | | 8,817,289 | |
| | | | |
| | | | Semiconductors & Semiconductor Equipment – 0.1% | | | | | | | | | | |
| | | | | | | |
| | 2,618 | | | Canadian Solar, Inc., (2) | | | | | | | | | | | | | | | | | | | | | | | 2,577,040 | |
| | | | | | | |
| | | | Trading Companies & Distributors – 0.0% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 50,198 | | | Fortress Transportation & Investor, LLC | | | | | | | | | | | | | | | | | | | | | | | 907,078 | |
| | | | | | | |
| | | | Transportation Infrastructure – 0.9% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 384,702 | | | Enav S.p.A, (2) | | | | | | | | | | | | | | | | | | | | | | | 1,924,586 | |
| | | | | | | |
| | 3,419,943 | | | Hutchison Port Holdings Trust, (2) | | | | | | | | | | | | | | | | | | | | | | | 954,482 | |
| | | | | | | |
| | 232,115 | | | Macquarie Infrastructure Corporation | | | | | | | | | | | | | | | | | | | | | | | 9,795,253 | |
| | | | | | | |
| | 158,971 | | | Sydney Airport, (2) | | | | | | | | | | | | | | | | | | | | | | | 841,583 | |
| | | | | | | |
| | 491,983 | | | Transurban Group, (2) | | | | | | | | | | | | | | | | | | | | | | | 4,356,660 | |
| | | | Total Transportation Infrastructure | | | | | | | | | | | | | | | | | | | | | | | 17,872,564 | |
| | | | | | | |
| | | | Water Utilities – 0.6% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 2,008,903 | | | Aguas Andinas SA. Class A | | | | | | | | | | | | | | | | | | | | | | | 1,097,311 | |
| | | | | | | |
| | 93,033 | | | Cia de Saneamento do Parana | | | | | | | | | | | | | | | | | | | | | | | 1,138,984 | |
| | | | | | | |
| | 2,295,876 | | | Inversiones Aguas Metropolitanas SA | | | | | | | | | | | | | | | | | | | | | | | 3,506,384 | |
| | | | | | | |
| | 227,066 | | | Pennon Group PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 2,374,664 | |
| | | | | | | |
| | 28,801 | | | Severn Trent PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 750,951 | |
| | | | | | | |
| | 322,516 | | | United Utilities PLC, (2) | | | | | | | | | | | | | | | | | | | | | | | 3,242,346 | |
| | | | Total Water Utilities | | | | | | | | | | | | | | | | | | | | | | | 12,110,640 | |
| | | | Total Common Stocks (cost $341,164,550) | | | | | | | | | | | | | | | | | | | | | | | 344,879,181 | |
| | | | | | | |
Principal
Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | |
| | | | $1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 16.6% | | | | | |
| | | | | | | |
| | | | Diversified Financial Services – 0.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 2,625 | | | National Rural Utilities Cooperative Finance Corporation | | | 5.250% | | | | | | | | | | | | 4/20/46 | | | | A3 | | | $ | 2,696,178 | |
| | | | | | | |
| | 3,965 | | | RKP Overseas Finance 2016 A, Reg S | | | 7.950% | | | | | | | | | | | | N/A (6) | | | | B1 | | | | 3,310,589 | |
| | | | Total Diversified Financial Services | | | | | | | | | | | | | | | | | | | | | | | 6,006,767 | |
| | | | | | | |
| | | | Electric Utilities – 5.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 5,420 | | | AES Gener SA, 144A | | | 8.375% | | | | | | | | | | | | 12/18/73 | | | | BB | | | | 5,551,977 | |
| | | | | | | |
| | 3,175 | | | AusNet Services Holdings Pty Ltd, Reg S | | | 5.750% | | | | | | | | | | | | 3/17/76 | | | | BBB | | | | 3,285,103 | |
| | | | | | | |
| | 4,200 | GBP | | Electricite de France S.A, Reg S | | | 5.875% | | | | | | | | | | | | N/A (6) | | | | BBB | | | | 5,486,552 | |
| | | | | | | |
| | 25,305 | | | Emera, Inc. | | | 6.750% | | | | | | | | | | | | 6/15/76 | | | | BBB– | | | | 26,317,200 | |
| | | | | | | |
| | 5,910 | | | EnBW Energie Baden-Wuerttemberg AG, Reg S | | | 5.125% | | | | | | | | | | | | 4/05/77 | | | | Baa2 | | | | 5,894,279 | |
48
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal
Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Electric Utilities (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 10,670 | | | Enel SpA, 144A | | | 8.750% | | | | | | | | | | | | 9/24/73 | | | | BBB– | | | $ | 11,870,375 | |
| | | | | | | |
| | 2,780 | | | Exelon Corporation | | | 6.350% | | | | | | | | | | | | 3/15/33 | | | | Baa2 | | | | 2,946,800 | |
| | | | | | | |
| | 17,455 | | | NextEra Energy Capital Holdings Inc. (3-Month LIBOR reference rate + 2.125% spread), (11) | | | 4.466% | | | | | | | | | | | | 6/15/67 | | | | BBB | | | | 16,974,992 | |
| | | | | | | |
| | 11,695 | | | NextEra Energy Inc. | | | 4.800% | | | | | | | | | | | | 12/01/77 | | | | BBB | | | | 10,876,350 | |
| | | | | | | |
| | 7,769 | | | NextEra Energy Inc. (3-Month LIBOR reference rate + 2.068% spread), (11) | | | 4.405% | | | | | | | | | | | | 10/01/66 | | | | BBB | | | | 7,574,775 | |
| | | | | | | |
| | 3,929 | | | PPL Capital Funding Inc. (3-Month LIBOR reference rate + 2.665% spread), (11) | | | 5.001% | | | | | | | | | | | | 3/30/67 | | | | BBB | | | | 3,929,000 | |
| | | | | | | |
| | 3,280 | | | SSE PLC, Reg S | | | 4.750% | | | | | | | | | | | | 9/16/77 | | | | BBB | | | | 3,164,938 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | | | | | | | | | | | 103,872,341 | |
| | | | | | | |
| | | | Energy Equipment & Services – 2.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 16,350 | | | TranCanada Pipelines Limited (3-Month LIBOR reference rate + 2.210% spread), (11) | | | 4.553% | | | | | | | | | | | | 5/15/67 | | | | Baa1 | | | | 15,285,615 | |
| | | | | | | |
| | 12,525 | | | Transcanada Trust | | | 5.875% | | | | | | | | | | | | 8/15/76 | | | | Baa2 | | | | 12,399,750 | |
| | | | | | | |
| | 13,642 | | | Transcanada Trust | | | 5.625% | | | | | | | | | | | | 5/20/75 | | | | Baa2 | | | | 13,300,950 | |
| | | | | | | |
| | 8,610 | | | Transcanada Trust | | | 5.300% | | | | | | | | | | | | 3/15/77 | | | | Baa2 | | | | 8,140,884 | |
| | | | Total Energy Equipment & Services | | | | | | | | | | | | | | | | | | | | | | | 49,127,199 | |
| | | | | | | |
| | | | Equity Real Estate Investment Trusts – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,750 | SGD | | Cache Logistics Trust, Reg S | | | 5.500% | | | | | | | | | | | | N/A (6) | | | | N/R | | | | 2,752,431 | |
| | | | | | | |
| | | | Gas Utilities – 0.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,302 | | | SK E&S Co Ltd, 144A | | | 4.875% | | | | | | | | | | | | N/A (6) | | | | BB+ | | | | 3,260,725 | |
| | | | | | | |
| | 2,395 | | | Towngas Finance Ltd, Reg S | | | 4.750% | | | | | | | | | | | | N/A (6) | | | | A– | | | | 2,391,968 | |
| | | | Total Gas Utilities | | | | | | | | | | | | | | | | | | | | | | | 5,652,693 | |
| | | | | | | |
| | | | Marine – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,295 | | | Royal Capital BV, Reg S | | | 5.500% | | | | | | | | | | | | N/A (6) | | | | N/R | | | | 3,268,841 | |
| | | | | | | |
| | | | Multi-Utilities – 1.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 7,070 | | | RWE AG, Reg S | | | 6.625% | | | | | | | | | | | | 7/30/75 | | | | BB+ | | | | 7,415,369 | |
| | | | | | | |
| | 15,261 | | | WEC Energy Group, Inc. (3-Month LIBOR reference rate + 2.113% spread), (11) | | | 4.455% | | | | | | | | | | | | 5/15/67 | | | | BBB | | | | 15,051,924 | |
| | | | Total Multi-Utilities | | | | | | | | | | | | | | | | | | | | | | | 22,467,293 | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels – 6.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 5,790 | | | Buckeye Partners LP. | | | 6.375% | | | | | | | | | | | | 1/22/78 | | | | Ba1 | | | | 5,161,660 | |
| | | | | | | |
| | 2,694 | | | DCP Midstream LP | | | 7.375% | | | | | | | | | | | | N/A (6) | | | | BB– | | | | 2,579,505 | |
| | | | | | | |
| | 9,876 | | | Enbridge Energy Partners LP (3-Month LIBOR reference rate + 3.798% spread), (11) | | | 6.106% | | | | | | | | | | | | 10/01/37 | | | | BB+ | | | | 9,863,655 | |
| | | | | | | |
| | 23,702 | | | Enbridge Inc. | | | 6.000% | | | | | | | | | | | | 1/15/77 | | | | BBB– | | | | 22,279,880 | |
| | | | | | | |
| | 25,074 | | | Enbridge Inc. | | | 5.500% | | | | | | | | | | | | 7/15/77 | | | | BBB– | | | | 22,848,683 | |
| | | | | | | |
| | 6,832 | | | Enbridge Inc. | | | 6.250% | | | | | | | | | | | | 3/01/78 | | | | BBB– | | | | 6,422,475 | |
| | | | | | | |
| | 2,694 | | | Energy Transfer Partners | | | 6.250% | | | | | | | | | | | | N/A (6) | | | | BB | | | | 2,495,317 | |
49
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal
Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 16,066 | | | Energy Transfer Partners LP. (3-Month LIBOR reference rate + 3.018% spread), (11) | | | 5.376% | | | | | | | | | | | | 11/01/66 | | | | Ba1 | | | $ | 13,696,265 | |
| | | | | | | |
| | 5,019 | | | Enterprise Products Operating LLC | | | 4.875% | | | | | | | | | | | | 8/16/77 | | | | Baa2 | | | | 4,692,765 | |
| | | | | | | |
| | 13,575 | | | Enterprise Products Operating LLP | | | 5.250% | | | | | | | | | | | | 8/16/77 | | | | Baa2 | | | | 12,624,750 | |
| | | | | | | |
| | 11,215 | | | Enterprise Products Operating LLC (3-Month LIBOR reference rate + 2.778% spread), (11) | | | 4.784% | | | | | | | | | | | | 6/01/67 | | | | Baa2 | | | | 11,116,869 | |
| | | | | | | |
| | 13,960 | | | Plains All American Pipeline L.P | | | 6.125% | | | | | | | | | | | | N/A (6) | | | | BB | | | | 13,122,400 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | | | | | | | | | | | | 126,904,224 | |
| | | | | | |
| | | | Real Estate Management & Development – 0.7% | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 12,250 | | | AT Securities BV, Reg S | | | 5.250% | | | | | | | | | | | | N/A (6) | | | | BBB– | | | | 11,196,500 | |
| | | | | | | |
| | 4,750 | SGD | | Frasers Property Treasury Pte Ltd, Reg S | | | 3.950% | | | | | | | | | | | | N/A (6) | | | | N/R | | | | 3,225,778 | |
| | | | Total Real Estate Management & Development | | | | | | | | | | | | | | | | | | | | | | | 14,422,278 | |
| | | | Total $1,000 Par (or similar) Institutional Preferred (cost $348,621,504) | | | | 334,474,067 | |
| | | | | | | |
Principal Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | CORPORATE BONDS – 14.5% | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | Air Freight & Logistics – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 3,100 | | | Mexico City Airport Trust, 144A | | | 5.500% | | | | | | | | | | | | 7/31/47 | | | | BBB+ | | | $ | 2,762,100 | |
| | | | | | | |
| | | | Commercial Services & Supplies – 1.6% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,955 | | | Advanced Disposal Services, Inc., 144A | | | 5.625% | | | | | | | | | | | | 11/15/24 | | | | B | | | | 4,930,225 | |
| | | | | | | |
| | 858 | | | Covanta Holding Corporation | | | 5.875% | | | | | | | | | | | | 3/01/24 | | | | B1 | | | | 845,130 | |
| | | | | | | |
| | 4,620 | | | Covanta Holding Corporation | | | 5.875% | | | | | | | | | | | | 7/01/25 | | | | B1 | | | | 4,458,300 | |
| | | | | | | |
| | 2,500 | EUR | | DSV Miljoe Group AS, Reg S | | | 5.900% | | | | | | | | | | | | 5/10/21 | | | | N/R | | | | 2,904,873 | |
| | | | | | | |
| | 5,060 | | | Hulk Finance Corp, 144A | | | 7.000% | | | | | | | | | | | | 6/01/26 | | | | B– | | | | 4,844,950 | |
| | | | | | | |
| | 1,750 | | | Tervita Escrow Corp, 144A | | | 7.625% | | | | | | | | | | | | 12/01/21 | | | | B2 | | | | 1,785,000 | |
| | | | | | | |
| | 6,599 | | | Tervita Escrow Corporation, 144A | | | 7.625% | | | | | | | | | | | | 12/01/21 | | | | B | | | | 6,730,980 | |
| | | | | | | |
| | 3,115 | | | Waste Pro USA Inc., 144A | | | 5.500% | | | | | | | | | | | | 2/15/26 | | | | B+ | | | | 2,994,294 | |
| | | | | | | |
| | 2,890 | | | Wrangler Buyer Corp., 144A | | | 6.000% | | | | | | | | | | | | 10/01/25 | | | | CCC+ | | | | 2,731,050 | |
| | | | Total Commercial Services & Supplies | | | | | | | | | | | | | | | | | | | | | | | 32,224,802 | |
| | | | | | | |
| | | | Communications Equipment – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,860 | | | ViaSat Inc., 144A | | | 5.625% | | | | | | | | | | | | 9/15/25 | | | | BB– | | | | 4,568,400 | |
| | | | | | | |
| | | | Construction & Engineering – 0.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 15,078,705 | COP | | Fideicomiso Ruta Al Mar., 144A | | | 6.750% | | | | | | | | | | | | 2/15/44 | | | | BBB– | | | | 5,048,013 | |
| | | | | | | |
| | | | Diversified Financial Services – 0.8% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 6,095 | | | Cometa Energia SA de CV, 144A | | | 6.375% | | | | | | | | | | | | 4/24/35 | | | | BBB | | | | 5,849,372 | |
| | | | | | | |
| | 4,600 | | | Ladder Capital Finance Holdings LLLP/ Ladder Capital Finance Corp., 144A | | | 5.250% | | | | | | | | | | | | 10/01/25 | | | | BB | | | | 4,317,330 | |
| | | | | | | |
| | 2,730 | | | Stoneway Capital Corporation, 144A | | | 10.000% | | | | | | | | | | | | 3/01/27 | | | | B | | | | 2,730,355 | |
50
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Diversified Financial Services (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 16,905 | BRL | | Swiss Insured Brazil Power Finance Sarl, 144A | | | 9.850% | | | | | | | | | | | | 7/16/32 | | | | AAA | | | $ | 4,034,606 | |
| | | | Total Diversified Financial Services | | | | | | | | | | | | | | | | | | | | | | | 16,931,663 | |
| | | | | | | |
| | | | Diversified Telecommunication Services – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 2,031 | | | Inmarsat Finance PLC, 144A | | | 6.500% | | | | | | | | | | | | 10/01/24 | | | | BB+ | | | | 2,036,078 | |
| | | | | | | |
| | | | Electric Utilities – 2.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,620 | | | ACWA Power Management And Investment One Ltd, 144A | | | 5.950% | | | | | | | | | | | | 12/15/39 | | | | BBB– | | | | 4,513,186 | |
| | | | | | | |
| | 3,144 | | | Brooklyn Navy Yard Cogeneration Partners LP, 144A | | | 7.420% | | | | | | | | | | | | 10/01/20 | | | | B+ | | | | 3,017,783 | |
| | | | | | | |
| | 11,759 | | | Crocket Cogeneration LP, 144A | | | 5.869% | | | | | | | | | | | | 3/30/25 | | | | BB+ | | | | 10,597,936 | |
| | | | | | | |
| | 9,219 | | | Panoche Energy Center LLC, 144A | | | 6.885% | | | | | | | | | | | | 7/31/29 | | | | Baa3 | | | | 9,442,782 | |
| | | | | | | |
| | 11,925 | | | Red Oak Power LLC | | | 9.200% | | | | | | | | | | | | 11/30/29 | | | | BB– | | | | 13,624,313 | |
| | | | | | | |
| | 2,505 | | | Terraform Global Operating LLC, 144A | | | 6.125% | | | | | | | | | | | | 3/01/26 | | | | BB | | | | 2,473,687 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | | | | | | | | | | | 43,669,687 | |
| | | | | | | |
| | | | Equity Real Estate Investment Trusts – 1.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,600 | | | Care Capital Properties, Inc. | | | 5.125% | | | | | | | | | | | | 8/15/26 | | | | BBB– | | | | 4,393,975 | |
| | | | | | | |
| | 4,835 | | | CoreCivic, Inc. | | | 4.750% | | | | | | | | | | | | 10/15/27 | | | | Ba1 | | | | 4,387,763 | |
| | | | | | | |
| | 2,110 | | | CyrusOne LP Finance. | | | 5.375% | | | | | | | | | | | | 3/15/27 | | | | BB+ | | | | 2,094,175 | |
| | | | | | | |
| | 6,280 | | | Geo Group Inc. | | | 6.000% | | | | | | | | | | | | 4/15/26 | | | | B+ | | | | 6,091,600 | |
| | | | | | | |
| | 1,735 | | | Iron Mountain Inc., 144A | | | 5.250% | | | | | | | | | | | | 3/15/28 | | | | BB– | | | | 1,605,569 | |
| | | | | | | |
| | 6,245 | | | SBA Communications Corporation | | | 4.875% | | | | | | | | | | | | 9/01/24 | | | | B+ | | | | 5,973,592 | |
| | | | Total Equity Real Estate Investment Trusts | | | | | | | | | | | | | | | | | | | | | | | 24,546,674 | |
| | | | | | | |
| | | | Gas Utilities – 1.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,165 | | | AmeriGas Partners LP/AmeriGas Finance Corporation | | | 5.750% | | | | | | | | | | | | 5/20/27 | | | | BB | | | | 3,956,750 | |
| | | | | | | |
| | 1,945 | | | Ferrellgas LP | | | 6.750% | | | | | | | | | | | | 1/15/22 | | | | B– | | | | 1,760,225 | |
| | | | | | | |
| | 47,768 | MXN | | Gas Natural Mexico SA | | | 7.670% | | | | | | | | | | | | 7/03/25 | | | | N/R | | | | 2,210,144 | |
| | | | | | | |
| | 54,265 | MXN | | Infraestructura Energetica Nova SAB de CV | | | 6.300% | | | | | | | | | | | | 2/02/23 | | | | Baa1 | | | | 2,484,792 | |
| | | | | | | |
| | 2,100 | | | LBC Tank Terminals Holdings Netherlands BV, 144A | | | 6.875% | | | | | | | | | | | | 5/15/23 | | | | B | | | | 2,121,000 | |
| | | | | | | |
| | 4,870 | | | National Gas Company of Trinidad and Tobago, 144A | | | 6.050% | | | | | | | | | | | | 1/15/36 | | | | BBB | | | | 4,918,700 | |
| | | | | | | |
| | 4,680 | | | NGL Energy Partners LP / NGL Energy Finance Corp | | | 6.125% | | | | | | | | | | | | 3/01/25 | | | | B+ | | | | 4,422,600 | |
| | | | | | | |
| | 2,795 | | | Rockpoint Gas Storage Canada Ltd, 144A | | | 7.000% | | | | | | | | | | | | 3/31/23 | | | | BB– | | | | 2,795,000 | |
| | | | | | | |
| | 2,915 | | | Suburban Propane Partners LP | | | 5.875% | | | | | | | | | | | | 3/01/27 | | | | BB– | | | | 2,725,525 | |
| | | | Total Gas Utilities | | | | | | | | | | | | | | | | | | | | | | | 27,394,736 | |
| | | | | | | |
| | | | Health Care Providers & Services – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 8,420 | | | Community Health Systems, Inc. | | | 6.250% | | | | | | | | | | | | 3/31/23 | | | | B | | | | 7,704,300 | |
| | | | | | | |
| | 885 | | | Tenet Healthcare Corp | | | 4.625% | | | | | | | | | | | | 7/15/24 | | | | BB– | | | | 838,272 | |
| | | | Total Health Care Providers & Services | | | | | | | | | | | | | | | | | | | | | | | 8,542,572 | |
| | | | | | | |
| | | | Hotels, Restaurants & Leisure – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,938 | | | Grupo Posadas SAB de CV, 144A | | | 7.875% | | | | | | | | | | | | 6/30/22 | | | | B+ | | | | 1,918,620 | |
51
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal Amount (000) (4) | | | Description (1) | | Coupon | | | | | | | | | Maturity | | | Ratings (3) | | | Value | |
| | | | | | | |
| | | | Hotels, Restaurants & Leisure (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 1,695 | | | MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc. | | | 4.500% | | | | | | | | | | | | 1/15/28 | | | | BB– | | | $ | 1,538,213 | |
| | | | Total Hotels, Restaurants & Leisure | | | | | | | | | | | | | | | | | | | | | | | 3,456,833 | |
| | | | | | | |
| | | | Independent Power & Renewable Electricity Producers – 0.6% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,930 | | | Azure Power Energy Ltd, 144A | | | 5.500% | | | | | | | | | | | | 11/03/22 | | | | Ba3 | | | | 3,592,020 | |
| | | | | | | |
| | 3,000 | | | Calpine Corporation., 144A | | | 5.250% | | | | | | | | | | | | 6/01/26 | | | | BB+ | | | | 2,827,500 | |
| | | | | | | |
| | 1,104 | | | Capex SA, 144A | | | 6.875% | | | | | | | | | | | | 5/15/24 | | | | B+ | | | | 984,348 | |
| | | | | | | |
| | 1,450 | | | GenOn Energy Inc., (5) | | | 9.500% | | | | | | | | | | | | 10/15/18 | | | | N/R | | | | 1,319,500 | |
| | | | | | | |
| | 3,945 | | | NRG Energy Inc., 144A | | | 5.750% | | | | | | | | | | | | 1/15/28 | | | | BB– | | | | 3,875,962 | |
| | | | Total Independent Power & Renewable Electricity Producers | | | | | | | | 12,599,330 | |
| | | | | | | |
| | | | IT Services – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,400 | | | Zayo Group LLC / Zayo Capital Inc., 144A | | | 5.750% | | | | | | | | | | | | 1/15/27 | | | | B | | | | 4,323,000 | |
| | | | | | | |
| | | | Marine – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 6,500 | NOK | | FJORD 1 ASA, Reg S | | | 4.580% | | | | | | | | | | | | 11/22/22 | | | | N/R | | | | 811,068 | |
| | | | | | | |
| | | | Mortgage Real Estate Investment Trusts – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 4,205 | | | Starwood Property Trust, 144A | | | 4.750% | | | | | | | | | | | | 3/15/25 | | | | BB– | | | | 4,036,800 | |
| | | | | | | |
| | | | Multi-Utilities – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,085 | | | Dominion Energy, Inc. | | | 5.750% | | | | | | | | | | | | 10/01/54 | | | | BBB– | | | | 3,214,570 | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels – 2.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,905 | | | Calumet Specialty Products | | | 6.500% | | | | | | | | | | | | 4/15/21 | | | | B– | | | | 1,895,475 | |
| | | | | | | |
| | 2,559 | | | Calumet Specialty Products | | | 7.625% | | | | | | | | | | | | 1/15/22 | | | | B– | | | | 2,559,000 | |
| | | | | | | |
| | 7,725 | | | DCP Midstream Operating LP, 144A | | | 5.850% | | | | | | | | | | | | 5/21/43 | | | | BB– | | | | 7,068,375 | |
| | | | | | | |
| | 200 | | | Delek & Avner Tamar Bond Ltd, 144A | | | 5.412% | | | | | | | | | | | | 12/30/25 | | | | BBB– | | | | 200,600 | |
| | | | | | | |
| | 7,855 | | | Enterprise Products Operating LLC | | | 5.375% | | | | | | | | | | | | 2/15/78 | | | | Baa2 | | | | 7,154,260 | |
| | | | | | | |
| | 6,365 | | | Genesis Energy LP | | | 5.625% | | | | | | | | | | | | 6/15/24 | | | | BB– | | | | 5,951,275 | |
| | | | | | | |
| | 1,620 | | | Global Partners LP/GLP Finance | | | 7.000% | | | | | | | | | | | | 6/15/23 | | | | B+ | | | | 1,607,850 | |
| | | | | | | |
| | 3,495 | | | Martin Mid-Stream Partners LP Finance | | | 7.250% | | | | | | | | | | | | 2/15/21 | | | | B– | | | | 3,451,313 | |
| | | | | | | |
| | 5,890 | | | Par Petroleum LLC / Petroleum Finance Corp., 144A | | | 7.750% | | | | | | | | | | | | 12/15/25 | | | | BB– | | | | 5,993,075 | |
| | | | | | | |
| | 4,995 | | | PBF Holding Company LLC. | | | 7.250% | | | | | | | | | | | | 6/15/25 | | | | BB | | | | 5,250,994 | |
| | | | | | | |
| | 3,000 | | | Sunoco LP / Sunoco Finance Corp., 144A | | | 5.875% | | | | | | | | | | | | 3/15/28 | | | | BB | | | | 2,828,490 | |
| | | | | | | |
| | 3,215 | | | TransMontaigne Partners LP / TLP Finance Corp | | | 6.125% | | | | | | | | | | | | 2/15/26 | | | | BB | | | | 3,247,150 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | | | | | | | | | | | | 47,207,857 | |
| | | |
| | | | Real Estate Management & Development – 1.0% | | | | | | | |
| | | | | | | |
| | 6,015 | | | APL Realty Holdings Pte Ltd, Reg S | | | 5.950% | | | | | | | | | | | | 6/02/24 | | | | Ba3 | | | | 4,600,380 | |
| | | | | | | |
| | 2,400 | EUR | | Cibus Nordic Real Estate AB, Reg S | | | 4.173% | | | | | | | | | | | | 5/26/21 | | | | N/R | | | | 2,816,896 | |
| | | | | | | |
| | 9,370 | | | Hunt Cos Inc., 144A | | | 6.250% | | | | | | | | | | | | 2/15/26 | | | | BB– | | | | 8,737,525 | |
| | | | | | | |
| | 4,348 | | | Kennedy-Wilson Holdings Incorporated | | | 5.875% | | | | | | | | | | | | 4/01/24 | | | | BB | | | | 4,217,560 | |
52
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal Amount (000) (4) | | | Description (1) | | | | | | | | Coupon | | | Maturity | | | Ratings (3) | | | Value | |
| |
| | | | Real Estate Management & Development (continued) | |
| | | | | | | |
| $ | 600 | | | RKI Overseas Finance 2016 B Ltd, Reg S | | | | | | | | | | | 4.700% | | | | 9/06/21 | | | | BB– | | | $ | 555,727 | |
| | | | Total Real Estate Management & Development | | | | | | | | | | | | 20,928,088 | |
| | | | | | | |
| | | | Road & Rail – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 1,133 | | | Panama Canal Railway Co, 144A | | | | | | | | | | | 7.000% | | | | 11/01/26 | | | | Ba1 | | | | 1,124,306 | |
| |
| | | | Transportation Infrastructure – 1.0% | |
| | | | | | |
| | 1,855 | | | Aeropuerto Internacional de Tocumen SA, 144A | | | | | | | | 6.000% | | | | 11/18/48 | | | | BBB | | | | 1,861,493 | |
| | | | | | | |
| | 1,635 | | | Aeropuertos Dominicanos SA, 144A | | | | | | | | | | | 6.750% | | | | 3/30/29 | | | | BB– | | | | 1,700,400 | |
| | | | | | | |
| | 445 | | | Delhi International Airport Ltd, 144A | | | | | | | | | | | 6.125% | | | | 10/31/26 | | | | BB | | | | 437,319 | |
| | | | | | |
| | 10,691 | MXN | | Grupo Aeroportuario Del Centro Norte, SAB de CV | | | | | | | | 6.850% | | | | 6/07/21 | | | | N/R | | | | 511,738 | |
| | | | | | | |
| | 5,825 | | | Hidrovias International Finance SARL., 144A | | | | | | | | | | | 5.950% | | | | 1/24/25 | | | | BB | | | | 5,227,938 | |
| | | | | | | |
| | 2,970 | EUR | | Swissport Financing Sarl, 144A | | | | | | | | | | | 9.750% | | | | 12/15/22 | | | | CCC | | | | 3,724,214 | |
| | | | | | | |
| | 6,426 | | | Terminales Portuarios, 144A | | | | | | | | | | | 8.125% | | | | 4/01/37 | | | | BB | | | | 6,670,216 | |
| | | | Total Transportation Infrastructure | | | | | | | | | | | | | | | | | | | | | | | 20,133,318 | |
| | | | | | | |
| | | | Water Utilities – 0.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 6,879 | | | AEGEA Finance SARL, 144A | | | | | | | | | | | 5.750% | | | | 10/10/24 | | | | Ba2 | | | | 6,359,636 | |
| | | | | | | |
| | | | Wireless Telecommunication Services – 0.0% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 885 | | | Hughes Satellite Systems Corporation | | | | | | | | | | | 6.625% | | | | 8/01/26 | | | | BB– | | | | 818,625 | |
| | | | Total Corporate Bonds (cost $304,831,971) | | | | | | | | | | | | | | | | 292,738,156 | |
| | | | | | | |
| Shares | | | Description (1) | | | | | | | | Coupon | | | | | | Ratings (3) | | | Value | |
| | | | |
| | | | CONVERTIBLE PREFERRED SECURITIES – 4.1% | | | | | | | | | | | | | |
| | | | | | | |
| | | | Electric Utilities – 0.5% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 195,190 | | | NextEra Energy Inc. | | | | | | | | | | | 6.123% | | | | | | | | BBB | | | $ | 11,145,349 | |
| | | | | | | |
| | | | Equity Real Estate Investment Trusts – 1.8% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 210,164 | | | Braemar Hotels & Resorts Inc. | | | | | | | | | | | 5.500% | | | | | | | | N/R | | | | 3,967,896 | |
| | | | | | | |
| | 8,608 | | | Crown Castle International Corporation | | | | | | | | | | | 6.875% | | | | | | | | N/R | | | | 8,599,392 | |
| | | | | | | |
| | 90,943 | | | EPR Properties Inc. | | | | | | | | | | | 9.000% | | | | | | | | BB | | | | 3,146,628 | |
| | | | | | | |
| | 25,936 | | | Equity Commonwealth | | | | | | | | | | | 6.500% | | | | | | | | Baa3 | | | | 675,892 | |
| | | | | | | |
| | 29,359 | | | Lexington Corporate Properties Trust, Series B | | | | | | | | | | | 6.500% | | | | | | | | N/R | | | | 1,438,591 | |
| | | | | | | |
| | 46,563 | | | QTS Realty Trust Inc. | | | | | | | | | | | 6.500% | | | | | | | | B– | | | | 4,680,047 | |
| | | | | | | |
| | 212,287 | | | Ramco-Gershenson Properties Trust | | | | | | | | | | | 7.250% | | | | | | | | N/R | | | | 11,191,771 | |
| | | | | | | |
| | 79,793 | | | RLJ Lodging Trust | | | | | | | | | | | 1.950% | | | | | | | | B– | | | | 2,093,768 | |
| | | | Total Equity Real Estate Investment Trusts | | | | | | | | | | | | | | | | 35,793,985 | |
| | | | | | | |
| | | | Multi-Utilities – 1.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 253,676 | | | Dominion Energy, Inc. | | | | | | | | | | | 6.750% | | | | | | | | BBB– | | | | 11,722,368 | |
| | | | | | | |
| | 127,619 | | | DTE Energy Company | | | | | | | | | | | 5.000% | | | | | | | | BBB+ | | | | 6,596,626 | |
| | | | | | | |
| | 83,854 | | | Sempra Energy | | | | | | | | | | | 6.000% | | | | | | | | N/R | | | | 8,654,571 | |
| | | | Total Multi-Utilities | | | | | | | | | | | | | | | | | | | | | | | 26,973,565 | |
53
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Coupon | | | | | | Ratings (3) | | | Value | |
| | | | |
| | | | Oil, Gas & Consumable Fuels – 0.5% | | | | | | | | | | |
| | | | | | | |
| | 269,694 | | | Kinder Morgan Inc. | | | | | | | | | | | 9.750% | | | | | | | | N/R | | | $ | 9,350,291 | |
| | | | Total Convertible Preferred Securities (cost $85,271,910) | | | | | | | | | | | | | | | | 83,263,190 | |
| | | | | | | |
Principal
Amount (000) | | | Description (1) | | Coupon (7) | | | Reference
Rate (7) | | | Spread (7) | | | Maturity (8) | | | Ratings (3) | | | Value | |
| | |
| | | | VARIABLE RATE SENIOR LOAN INTERESTS – 2.7% (7) | | | | | |
| | | | | | | |
| | | | Capital Markets – 0.1% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 2,940 | | | Hummel Station LLC, Construction, Term Loan B1, (DD1) | | | 8.358% | | | | 1-Month LIBOR | | | | 6.000% | | | | 10/27/22 | | | | BB– | | | $ | 2,878,745 | |
| | | | | |
| | | | Commercial Services & Supplies – 0.1% | | | | | | | | | | | | | |
| | | | | | | |
| | 2,240 | | | EnergySolutions LLC, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | B | | | | 2,247,000 | |
| | | | | |
| | | | Diversified Telecommunication Services – 0.1% | | | | | | | | | | | | | |
| | | | | | | |
| | 1,600 | | | SBA Senior Finance II LLC, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | BB | | | | 1,591,568 | |
| | | | | | | |
| | | | Electric Utilities – 0.4% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 2,219 | | | Homer City Generation LP | | | 13.331% | | | | 1-Month LIBOR | | | | 11.000% | | | | 4/06/23 | | | | N/R | | | | 2,081,070 | |
| | | | | | | |
| | 4,585 | | | Invenergy Thermal Operating I LLC | | | 7.862% | | | | 3-Month LIBOR | | | | 5.500% | | | | 10/19/22 | | | | B1 | | | | 4,573,835 | |
| | | | | | | |
| | 2,199 | | | Panda Liberty LLC | | | 8.830% | | | | 3-Month LIBOR | | | | 6.500% | | | | 8/21/20 | | | | BB– | | | | 2,074,177 | |
| | 9,003 | | | Total Electric Utilities | | | | | | | | | | | | | | | | | | | | | | | 8,729,082 | |
| | | | | |
| | | | Equity Real Estate Investment Trusts – 0.2% | | | | | | | | | | | | | |
| | | | | | | |
| | 1,472 | | | Iron Mountain Inc. | | | 4.086% | | | | 1-Month LIBOR | | | | 1.750% | | | | 3/22/26 | | | | BB | | | | 1,446,175 | |
| | | | | | | |
| | 2,860 | | | VICI Properties 1 LLC, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | BBB– | | | | 2,844,813 | |
| | 4,332 | | | Total Equity Real Estate Investment Trusts | | | | | | | | | | | | | | | | 4,290,988 | |
| | | | | | | |
| | | | Hotels, Restaurants & Leisure – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,000 | | | CityCenter Holdings LLC, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | BB– | | | | 2,989,560 | |
| | | | |
| | | | Independent Power & Renewable Electricity Producers – 0.1% | | | | | | | | | | |
| | | | | | | |
| | 2,937 | | | Terra-Gen Finance Co LLC | | | 6.576% | | | | 1-Month LIBOR | | | | 4.250% | | | | 12/09/21 | | | | B+ | | | | 2,658,356 | |
| | | | | | | |
| | | | Oil, Gas & Consumable Fuels – 0.5% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 5,500 | | | BCP Renaissance Parent LLC., Term Loan B, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | BB– | | | | 5,497,415 | |
| | | | | | | |
| | 3,425 | | | Limetree Bay Terminals LLC, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | N/R | | | | 3,402,496 | |
| | 8,925 | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | 8,899,911 | |
| | | |
| | | | Real Estate Management & Development – 1.0% | | | | | | | |
| | | | | | | |
| | 12,500 | | | Brookfield Retail Hold, (WI/DD) | | | TBD | | | | TBD | | | | TBD | | | | TBD | | | | Ba3 | | | | 12,303,125 | |
| | | | | | | |
| | 8,110 | | | Invitation Homes Operating Partnership LP | | | 4.069% | | | | 1-Month LIBOR | | | | 1.800% | | | | 2/06/22 | | | | N/R | | | | 7,957,938 | |
| | 20,610 | | | Total Real Estate Management & Development | | | | | | | | | | | | | | | | 20,261,063 | |
| $ | 55,587 | | | Total Variable Rate Senior Loan Interests (cost $54,720,221) | | | | | | | | | | | | 54,546,273 | |
54
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Principal
Amount (000) | | | Description (1) | | | | | | | | Coupon | | | Maturity | | | Ratings (3) | | | Value | |
| |
| | | | CONVERTIBLE BONDS – 0.9% | |
| |
| | | | Oil, Gas & Consumable Fuels – 0.7% | |
| | | | | | | |
| $ | 16,905 | | | Cheniere Energy Inc. | | | | | | | | | | | 4.250% | | | | 3/15/45 | | | | N/R | | | $ | 13,383,672 | |
| | | | |
| | | | Real Estate Management & Development – 0.2% | | | | | | | | | | |
| | | | | | | |
| | 4,055 | | | Tricon Capital Group Inc., 144A | | | | | | | | | | | 5.750% | | | | 3/31/22 | | | | N/R | | | | 4,278,430 | |
| $ | 20,960 | | | Total Convertible Bonds (cost $15,954,563) | | | | | | | | | | | | | | | | 17,662,102 | |
| | | | | | | |
| Shares | | | Description (1), (9) | | | | | | | | | | | | | | | | | Value | |
| | | | | |
| | | | INVESTMENT COMPANIES – 0.8% | | | | | | | | | | | | | |
| | | | | | | |
| | 1,651,930 | | | John Laing Infrastructure Fund | | | | | | | | | | | | | | | | | | | | | | $ | 2,582,684 | |
| | | | | | | |
| | 26,405,300 | | | Keppel Infrastructure Trust | | | | | | | | | | | | | | | | | | | | | | | 10,073,782 | |
| | | | | | | |
| | 1,378,436 | | | NextEnergy Solar Fund Limited | | | | | | | | | | | | | | | | | | | | | | | 1,964,727 | |
| | | | | | | |
| | 1,693,772 | | | Starwood European Real Estate Finance Limited | | | | | | | | | | | | | | | | | | | | | | | 2,414,185 | |
| | | | Total Investment Companies (cost $17,158,417) | | | | | | | | 17,035,378 | |
| | | | | | | |
Principal
Amount (000) (4) | | | Description (1) | | | | | | | | Coupon | | | Maturity | | | Ratings (3) | | | Value | |
| | | |
| | | | SOVEREIGN DEBT – 0.2% | | | | | | | | | |
| | | |
| | | | Costa Rica – 0.0% | | | | | | | |
| | | | | | | |
| $ | 1,273 | | | Instituto Costarricense de Electricidad, 144A | | | | | | | | | | | 6.375% | | | | 5/15/43 | | | | Ba2 | | | $ | 1,056,590 | |
| | | | | | | |
| | | | India – 0.2% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 250,000 | INR | | National Highways Authority of India, Reg S | | | | | | | | | | | 7.300% | | | | 5/18/22 | | | | N/R | | | | 3,616,412 | |
| | | | Total Sovereign Debt (cost $5,040,455) | | | | | | | | 4,673,002 | |
| | | | Total Long-Term Investments (cost $1,981,827,846) | | | | | | | | 1,976,462,936 | |
| | | | | | | |
Principal
Amount (000) | | | Description (1) | | | | | | | | Coupon | | | Maturity | | | | | | Value | |
| | | | | | | |
| | | | SHORT-TERM INVESTMENTS – 2.3% | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | REPURCHASE AGREEMENTS – 2.3% | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| $ | 45,321 | | | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/18, repurchase price $45,324,783, collateralized by $48,235,000 U.S. Treasury Notes, 2.000%, due 2/15/25, value $46,229,196 | | | | | | | | | | | 0.900% | | | | 7/02/18 | | | | | | | $ | 45,321,384 | |
| | | | Total Short-Term Investments (cost $45,321,384) | | | | 45,321,384 | |
| | | | Total Investments (cost $2,027,149,230) – 100.2% | | | | 2,021,784,320 | |
| | | | Other Assets Less Liabilities – (0.2)% (10) | | | | (3,820,351 | ) |
| | | | Net Assets – 100% | | | | | | | | | | | | | | | | | | | | | | $ | 2,017,963,969 | |
55
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
Investments in Derivatives
Futures Contracts
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Contract
Position | | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount | | | Value | | | Unrealized
Appreciation
(Depreciation) | | | Variation
Margin
Receivable/
(Payable) | |
U.S. Treasury 5-Year Note | | | Short | | | | (89 | ) | | | 9/18 | | | $ | (10,102,005 | ) | | $ | (10,111,930 | ) | | $ | (9,925 | ) | | $ | 2,086 | |
U.S. Treasury Long Bond | | | Short | | | | (28 | ) | | | 9/18 | | | | (4,016,336 | ) | | | (4,060,000 | ) | | | (43,664 | ) | | | (875 | ) |
U.S. Treasury Ultra Bond | | | Short | | | | (62 | ) | | | 9/18 | | | | (9,774,525 | ) | | | (9,892,875 | ) | | | (118,350 | ) | | | 3,875 | |
| | | | | | | | | | | | | | | $ | (23,892,866 | ) | | $ | (24,064,805 | ) | | $ | (171,939 | ) | | $ | 5,086 | |
Total receivable for variation margin on futures contracts | | | | | | | | | | | $ | 5,961 | |
Total payable for variation margin on futures contracts | | | | | | | | | | | $ | (875 | ) |
56
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) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
| (5) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
| (6) | Perpetual security. Maturity date is not applicable. |
| (7) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate (Reference Rate) plus an assigned fixed rate (Spread). These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
| (8) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
| (9) | A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
| (10) | Other assets less liabilities include the unrealized appreciation (depreciation) of over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
| (11) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
| (12) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| 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. |
| DD1 | Portion of investment purchased on a delayed delivery basis. |
| LIBOR | London Inter-Bank Offered Rate |
| REIT | Real Estate Investment Trust |
| Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
| TBD | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date. |
| WI/DD | Purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
57
Nuveen Real Estate Securities Fund
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | LONG-TERM INVESTMENTS – 97.4% | | | | | | | | | | | | |
| | | | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 94.6% | | | | | | | | | | | | |
| | | | |
| | | | Diversified - 3.0% | | | | | | | | | |
| | | | |
| | 946,037 | | | Alexander & Baldwin Inc. | | | | | | | | | | $ | 22,231,870 | |
| | | | |
| | 225,943 | | | Armada Hoffler Properties Inc. | | | | | | | | | | | 3,366,551 | |
| | | | |
| | 423,541 | | | Empire State Realty Trust Inc. | | | | | | | | | | | 7,242,551 | |
| | | | |
| | 1,277,155 | | | Forest City Realty Trust Inc. | | | | | | | | | | | 29,131,906 | |
| | | | |
| | 691,602 | | | Liberty Property Trust | | | | | | | | | | | 30,658,717 | |
| | | | |
| | 388,501 | | | VEREIT, Inc. | | | | | | | | | | | 2,890,447 | |
| | | | |
| | 381,877 | | | Washington Real Estate Investment Trust | | | | | | | | | | | 11,582,329 | |
| | | | Total Diversified | | | | | | | | | | | 107,104,371 | |
| | | | |
| | | | Health Care – 7.5% | | | | | | | | | |
| | | | |
| | 2,596,064 | | | Health Care Property Investors Inc. | | | | | | | | | | | 67,030,372 | |
| | | | |
| | 1,289,741 | | | Healthcare Realty Trust, Inc. | | | | | | | | | | | 37,505,668 | |
| | | | |
| | 371,564 | | | MedEquities Realty Trust, Inc. | | | | | | | | | | | 4,094,635 | |
| | | | |
| | 486,814 | | | Medical Properties Trust Inc. | | | | | | | | | | | 6,834,869 | |
| | | | |
| | 7,933,424 | | | Parkway Life Real Estate Investment Trust, (2) | | | | | | | | | | | 15,821,227 | |
| | | | |
| | 3,239,492 | | | Physicians Realty Trust | | | | | | | | | | | 51,637,502 | |
| | | | |
| | 64,993 | | | Sabra Health Care Real Estate Investment Trust Inc. | | | | | | | | | | | 1,412,298 | |
| | | | |
| | 1,509,885 | | | Ventas Inc. | | | | | | | | | | | 85,987,951 | |
| | | | Total Health Care | | | | | | | | | | | 270,324,522 | |
| | | | |
| | | | Hotels & Resorts – 6.9% | | | | | | | | | |
| | | | |
| | 1,001,252 | | | Apple Hospitality REIT, Inc. | | | | | | | | | | | 17,902,386 | |
| | | | |
| | 1,448,256 | | | DiamondRock Hospitality Company | | | | | | | | | | | 17,784,584 | |
| | | | |
| | 2,100,869 | | | Host Hotels & Resorts Inc. | | | | | | | | | | | 44,265,310 | |
| | | | |
| | 41,764 | | | LaSalle Hotel Properties | | | | | | | | | | | 1,429,582 | |
| | | | |
| | 477,650 | | | MGM Growth Properties LLC | | | | | | | | | | | 14,549,219 | |
| | | | |
| | 339,327 | | | Pebblebrook Hotel Trust | | | | | | | | | | | 13,165,888 | |
| | | | |
| | 3,475,241 | | | Summit Hotel Properties Inc. | | | | | | | | | | | 49,730,699 | |
| | | | |
| | 5,514,687 | | | Sunstone Hotel Investors Inc. | | | | | | | | | | | 91,654,098 | |
| | | | Total Hotels & Resorts | | | | | | | | | | | 250,481,766 | |
| | | | |
| | | | Industrial – 12.1% | | | | | | | | | |
| | | | |
| | 106,981 | | | DCT Industrial Trust Inc. | | | | | | | | | | | 7,138,842 | |
| | | | |
| | 898,816 | | | Dream Industrial Real Estate Investment Trust | | | | | | | | | | | 7,055,704 | |
| | | | |
| | 5,064,254 | | | Duke Realty Corporation | | | | | | | | | | | 147,015,294 | |
| | | | |
| | 92,917 | | | EastGroup Properties Inc., (3) | | | | | | | | | | | 8,879,149 | |
| | | | |
| | 1,438,882 | | | First Industrial Realty Trust, Inc. | | | | | | | | | | | 47,972,326 | |
58
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Industrial (continued) | | | | | | | | | |
| | | | |
| | 2,628,899 | | | Prologis Inc. | | | | | | | | | | $ | 172,692,375 | |
| | | | |
| | 733,818 | | | STAG Industrial Inc. | | | | | | | | | | | 19,981,864 | |
| | | | |
| | 714,220 | | | Terreno Realty Corporation | | | | | | | | | | | 26,904,667 | |
| | | | Total Industrial | | | | | | | | | | | 437,640,221 | |
| | | | |
| | | | Mortgage – 0.5% | | | | | | | | | |
| | | | |
| | 522,066 | | | Blackstone Mortgage Trust Inc., Class A | | | | | | | | | | | 16,408,534 | |
| | | | |
| | 13,190 | | | KKR Real Estate Finance Trust, Inc. | | | | | | | | | | | 260,898 | |
| | | | |
| | 33,239 | | | TPG Re Finance Trust Inc. | | | | | | | | | | | 675,416 | |
| | | | Total Mortgage | | | | | | | | | | | 17,344,848 | |
| | | | |
| | | | Office – 16.1% | | | | | | | | | |
| | | | |
| | 927,401 | | | Alexandria Real Estate Equities Inc. | | | | | | | | | | | 117,010,184 | |
| | | | |
| | 1,134,638 | | | Boston Properties, Inc. | | | | | | | | | | | 142,306,298 | |
| | | | |
| | 1,121,545 | | | Brandywine Realty Trust | | | | | | | | | | | 18,931,680 | |
| | | | |
| | 723,068 | | | Columbia Property Trust Inc. | | | | | | | | | | | 16,420,874 | |
| | | | |
| | 818,903 | | | Corporate Office Properties | | | | | | | | | | | 23,739,998 | |
| | | | |
| | 3,109,743 | | | Cousins Properties, Inc. | | | | | | | | | | | 30,133,410 | |
| | | | |
| | 487,842 | | | Douglas Emmett Inc. | | | | | | | | | | | 19,601,492 | |
| | | | |
| | 703,966 | | | Easterly Government Properties, Inc. | | | | | | | | | | | 13,910,368 | |
| | | | |
| | 548,541 | | | Equity Commonwealth | | | | | | | | | | | 17,279,042 | |
| | | | |
| | 822,552 | | | Highwoods Properties, Inc. | | | | | | | | | | | 41,728,063 | |
| | | | |
| | 1,633,080 | | | Hudson Pacific Properties Inc. | | | | | | | | | | | 57,860,024 | |
| | | | |
| | 16,178 | | | JBG Smith Properties | | | | | | | | | | | 590,012 | |
| | | | |
| | 74,535 | | | Kilroy Realty Corporation | | | | | | | | | | | 5,637,827 | |
| | | | |
| | 1,660,396 | | | Paramount Group Inc. | | | | | | | | | | | 25,570,098 | |
| | | | |
| | 124,753 | | | Piedmont Office Realty Trust | | | | | | | | | | | 2,486,327 | |
| | | | |
| | 137,022 | | | SL Green Realty Corporation | | | | | | | | | | | 13,774,822 | |
| | | | |
| | 448,139 | | | Vornado Realty Trust | | | | | | | | | | | 33,126,435 | |
| | | | Total Office | | | | | | | | | | | 580,106,954 | |
| | | | |
| | | | Residential – 18.6% | | | | | | | | | |
| | | | |
| | 894,824 | | | American Campus Communities Inc. | | | | | | | | | | | 38,370,053 | |
| | | | |
| | 306,812 | | | American Homes 4 Rents, Class A | | | | | | | | | | | 6,805,090 | |
| | | | |
| | 765,540 | | | AvalonBay Communities, Inc. | | | | | | | | | | | 131,588,671 | |
| | | | |
| | 973,014 | | | Camden Property Trust | | | | | | | | | | | 88,670,766 | |
| | | | |
| | 583,920 | | | Equity Lifestyles Properties Inc. | | | | | | | | | | | 53,662,248 | |
| | | | |
| | 455,893 | | | Equity Residential | | | | | | | | | | | 29,035,825 | |
| | | | |
| | 553,718 | | | Essex Property Trust Inc. | | | | | | | | | | | 132,377,362 | |
| | | | |
| | 419,514 | | | Investors Real Estate Trust | | | | | | | | | | | 2,319,912 | |
| | | | |
| | 1,898,913 | | | Invitation Homes, Inc. | | | | | | | | | | | 43,788,934 | |
| | | | |
| | 742,060 | | | Sun Communities Inc. | | | | | | | | | | | 72,632,833 | |
59
Nuveen Real Estate Securities Fund (continued)
Portfolio of Investments June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Residential (continued) | | | | | | | | | |
| | | | |
| | 1,930,591 | | | UDR Inc. | | | | | | | | | | $ | 72,474,386 | |
| | | | Total Residential | | | | | | | | | | | 671,726,080 | |
| | | | |
| | | | Retail – 15.3% | | | | | | | | | |
| | | | |
| | 10,984 | | | Acadia Realty Trust | | | | | | | | | | | 300,632 | |
| | | | |
| | 215,711 | | | Agree Realty Corporation | | | | | | | | | | | 11,383,069 | |
| | | | |
| | 3,657 | | | Alexander’s Inc. | | | | | | | | | | | 1,399,278 | |
| | | | |
| | 1,242,709 | | | Brixmor Property Group Inc. | | | | | | | | | | | 21,660,418 | |
| | | | |
| | 977,935 | | | Federal Realty Investment Trust | | | | | | | | | | | 123,757,674 | |
| | | | |
| | 49,058 | | | GGP, Inc. | | | | | | | | | | | 1,002,255 | |
| | | | |
| | 526,849 | | | Macerich Company | | | | | | | | | | | 29,940,829 | |
| | | | |
| | 394,351 | | | Realty Income Corporation | | | | | | | | | | | 21,212,140 | |
| | | | |
| | 1,083,073 | | | Regency Centers Corporation | | | | | | | | | | | 67,237,172 | |
| | | | |
| | 1,379,017 | | | Simon Property Group, Inc., (3) | | | | | | | | | | | 234,694,903 | |
| | | | |
| | 723,861 | | | Spirit Realty Capital Inc. | | | | | | | | | | | 5,812,604 | |
| | | | |
| | 261,971 | | | Taubman Centers Inc., (3) | | | | | | | | | | | 15,393,416 | |
| | | | |
| | 708,946 | | | Urban Edge Properties | | | | | | | | | | | 16,213,595 | |
| | | | Total Retail | | | | | | | | | | | 550,007,985 | |
| | | | |
| | | | Specialized – 14.6% | | | | | | | | | |
| | | | |
| | 14,938 | | | American Tower Corporation, REIT | | | | | | | | | | | 2,153,611 | |
| | | | |
| | 768,296 | | | CatchMark Timber Trust Inc., Class A | | | | | | | | | | | 9,780,408 | |
| | | | |
| | 150,154 | | | Coresite Realty Corporation | | | | | | | | | | | 16,640,066 | |
| | | | |
| | 1,393,554 | | | CubeSmart | | | | | | | | | | | 44,900,310 | |
| | | | |
| | 1,037,832 | | | Digital Realty Trust Inc. | | | | | | | | | | | 115,801,295 | |
| | | | |
| | 264,387 | | | Equinix Inc. | | | | | | | | | | | 113,657,327 | |
| | | | |
| | 283,612 | | | Extra Space Storage Inc. | | | | | | | | | | | 28,307,314 | |
| | | | |
| | 232,232 | | | Four Corners Property Trust, Inc. | | | | | | | | | | | 5,719,874 | |
| | | | |
| | 342,057 | | | Gaming and Leisure Properties Inc. | | | | | | | | | | | 12,245,641 | |
| | | | |
| | 137,537 | | | Iron Mountain Inc. | | | | | | | | | | | 4,815,170 | |
| | | | |
| | 202,524 | | | Life Storage, Inc. | | | | | | | | | | | 19,707,610 | |
| | | | |
| | 529,426 | | | Public Storage, Inc. | | | | | | | | | | | 120,105,582 | |
| | | | |
| | 199,965 | | | SBA Communications Corporation, (4) | | | | | | | | | | | 33,018,221 | |
| | | | Total Specialized | | | | | | | | | | | 526,852,429 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $2,700,885,842) | | | | | | | | | | | 3,411,589,176 | |
| | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | COMMON STOCKS – 2.8% | | | | | | | | | | | | |
| | | | |
| | | | Hotels, Restaurants & Leisure – 2.6% | | | | | | | | | |
| | | | |
| | 549,060 | | | Hilton Worldwide Holdings Inc. | | | | | | | | | | $ | 43,463,590 | |
| | | | |
| | 242,528 | | | Hyatt Hotels Corporation, Class A | | | | | | | | | | | 18,711,035 | |
60
| | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | |
| | | | Hotels, Restaurants & Leisure (continued) | | | | | | | | | |
| | | | |
| | 239,206 | | | Marriott International, Inc., Class A | | | | | | | | | | $ | 30,283,480 | |
| | | | Total Hotels, Restaurants & Leisure | | | | | | | | | | | 92,458,105 | |
| | | | |
| | | | Real Estate Management & Development – 0.2% | | | | | | | | | |
| | | | |
| | 650,467 | | | Essential Properties Realty Trust Inc., (4) | | | | | | | | | | | 8,807,323 | |
| | | | Total Common Stocks (cost $102,787,144) | | | | | | | | | | | 101,265,428 | |
| | | | Total Long-Term Investments (cost $2,803,672,986) | | | | | | | | | | | 3,512,854,604 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Shares | | | Description (1) | | Coupon | | | | | | Value | |
| | | | |
| | | | INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.0% | | | | | | | | | | | | |
| | | | |
| | | | Money Market Funds – 0.0% | | | | | | | | | |
| | | | |
| | 293,351 | | | First American Government Obligations Fund, Class X, (5) | | | 1.806% (6) | | | | | | | $ | 293,351 | |
| | | | Total Investments Purchased with Collateral from Securities Lending (cost $293,351) | | | | 293,351 | |
| | | | |
| Shares | | | Description (1) | | Coupon | | | | | | Value | |
| | | | |
| | | | SHORT-TERM INVESTMENTS – 1.4% | | | | | | | | | | | | |
| | | | |
| | | | Money Market Funds – 1.4% | | | | | | | | | |
| | | | |
| | 49,494,053 | | | First American Treasury Obligations Fund, Class Z | | | 1.754% (6) | | | | | | | $ | 49,494,053 | |
| | | | Total Short-Term Investments (cost $49,494,053) | | | | | | | | | | | 49,494,053 | |
| | | | Total Investments (cost $2,853,460,390) – 98.8% | | | | | | | | | | | 3,562,642,008 | |
| | | | Other Assets Less Liabilities – 1.2% | | | | | | | | | | | 42,039,190 | |
| | | | Net Assets – 100% | | | | | | | | | | $ | 3,604,681,198 | |
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) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $285,784. |
| (4) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| (5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
| (6) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
61
Statement of Assets and Liabilities
June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real
Asset Income | | | Real Estate
Securities | |
Assets | | | | | | | | | | | | | | | | |
Long-term investments, at value (cost $446,176,132, $24,494,993, $1,981,827,846 and $2,803,672,986, respectively) | | $ | 525,655,912 | | | $ | 25,108,650 | | | $ | 1,976,462,936 | | | $ | 3,512,854,604 | |
Short-term investments, at value (cost approximates value) | | | 5,403,335 | | | | — | | | | 45,321,384 | | | | 49,494,053 | |
Investments purchased with collateral from securities lending, at value (cost approximates value) | | | — | | | | — | | | | — | | | | 293,351 | |
Cash | | | 891,395 | | | | 467,626 | | | | 30,074 | | | | — | |
Cash collateral at brokers for investments in futures contracts(1) | | | — | | | | — | | | | 335,000 | | | | — | |
Cash denominated in foreign currencies (cost $45,467, $10,686, $297,973 and $—, respectively) | | | 45,407 | | | | 10,699 | | | | 298,321 | | | | — | |
Receivable for: | | | | | | | | | | | | | | | | |
Dividends | | | 1,453,858 | | | | 108,442 | | | | 8,127,490 | | | | 12,534,304 | |
Due from broker | | | — | | | | — | | | | — | | | | 660 | |
Interest | | | 270 | | | | — | | | | 10,914,515 | | | | 93,164 | |
Investments sold | | | 12,734,064 | | | | 1,083,634 | | | | 27,911,970 | | | | 72,310,901 | |
Reclaims | | | 495,013 | | | | 10,708 | | | | 151,023 | | | | 49,563 | |
Shares sold | | | 618,728 | | | | — | | | | 3,594,928 | | | | 4,122,585 | |
Variation margin on futures contracts | | | — | | | | — | | | | 5,961 | | | | — | |
Other assets | | | 81,406 | | | | 3,867 | | | | 98,424 | | | | 316,477 | |
Total assets | | | 547,379,388 | | | | 26,793,626 | | | | 2,073,252,026 | | | | 3,652,069,662 | |
Liabilities | | | | | | | | | | | | | | | | |
Payable for: | | | | | | | | | | | | | | | | |
Collateral from securities lending program | | | — | | | | — | | | | — | | | | 293,351 | |
Dividends | | | — | | | | 300,795 | | | | 822,932 | | | | 4,728,793 | |
Investments purchased | | | 7,785,045 | | | | 710,547 | | | | 47,103,783 | | | | 31,010,151 | |
Shares redeemed | | | 750,572 | | | | — | | | | 4,901,865 | | | | 6,107,162 | |
Variation margin on futures contracts | | | — | | | | — | | | | 875 | | | | — | |
Accrued expenses: | | | | | | | | | | | | | | | | |
Directors/Trustees fees | | | 32,719 | | | | 110 | | | | 53,913 | | | | 276,438 | |
Management fees | | | 352,524 | | | | 5,915 | | | | 1,224,026 | | | | 2,453,882 | |
12b-1 distribution and service fees | | | 39,775 | | | | 27 | | | | 223,931 | | | | 145,495 | |
Other | | | 531,394 | | | | 35,335 | | | | 956,732 | | | | 2,373,192 | |
Total liabilities | | | 9,492,029 | | | | 1,052,729 | | | | 55,288,057 | | | | 47,388,464 | |
Net assets | | $ | 537,887,359 | | | $ | 25,740,897 | | | $ | 2,017,963,969 | | | $ | 3,604,681,198 | |
Class A Shares | | | | | | | | | | | | | | | | |
Net assets | | $ | 78,348,158 | | | $ | 25,736 | | | $ | 208,603,468 | | | $ | 426,649,041 | |
Shares outstanding | | | 7,340,389 | | | | 1,250 | | | | 9,037,173 | | | | 21,276,242 | |
Net asset value (“NAV”) per share | | $ | 10.67 | | | $ | 20.59 | | | $ | 23.08 | | | $ | 20.05 | |
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | | $ | 11.32 | | | $ | 21.85 | | | $ | 24.49 | | | $ | 21.27 | |
Class C Shares | | | | | | | | | | | | | | | | |
Net assets | | $ | 28,916,398 | | | $ | 25,730 | | | $ | 219,411,663 | | | $ | 56,591,785 | |
Shares outstanding | | | 2,740,643 | | | | 1,250 | | | | 9,500,955 | | | | 2,907,304 | |
NAV and offering price per share | | $ | 10.55 | | | $ | 20.58 | | | $ | 23.09 | | | $ | 19.47 | |
Class R3 Shares | | | | | | | | | | | | | | | | |
Net assets | | $ | 301,271 | | | $ | — | | | $ | — | | | $ | 30,794,815 | |
Shares outstanding | | | 27,815 | | | | — | | | | — | | | | 1,511,089 | |
NAV and offering price per share | | $ | 10.83 | | | $ | — | | | $ | — | | | $ | 20.38 | |
Class R6 Shares | | | | | | | | | | | | | | | | |
Net assets | | $ | 10,916,839 | | | $ | 25,661,674 | | | $ | 30,151,470 | | | $ | 352,085,171 | |
Shares outstanding | | | 1,023,376 | | | | 1,246,250 | | | | 1,300,780 | | | | 17,103,754 | |
NAV and offering price per share | | $ | 10.67 | | | $ | 20.59 | | | $ | 23.18 | | | $ | 20.59 | |
Class I Shares | | | | | | | | | | | | | | | | |
Net assets | | $ | 419,380,597 | | | $ | 27,757 | | | $ | 1,559,773,182 | | | $ | 2,738,537,340 | |
Shares outstanding | | | 39,388,445 | | | | 1,348 | | | | 67,576,305 | | | | 134,387,803 | |
NAV and offering price per share | | $ | 10.65 | | | $ | 20.59 | | | $ | 23.08 | | | $ | 20.38 | |
Class T Shares(2) | | | | | | | | | | | | | | | | |
Net assets | | $ | 24,096 | | | $ | — | | | $ | 24,186 | | | $ | 23,046 | |
Shares outstanding | | | 2,264 | | | | — | | | | 1,048 | | | | 1,131 | |
NAV per share | | $ | 10.64 | | | $ | — | | | $ | 23.08 | | | $ | 20.39 | |
Offering price per share (NAV per share plus maximum sales charge of 2.50% of offering price) | | $ | 10.91 | | | $ | — | | | $ | 23.67 | | | $ | 20.91 | |
See accompanying notes to financial statements.
62
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real
Asset Income | | | Real Estate
Securities | |
Net assets consist of: | | | | | | | | | | | | | | | | |
Capital paid-in | | $ | 456,808,242 | | | $ | 25,002,023 | | | $ | 2,068,509,439 | | | $ | 2,951,814,300 | |
Undistributed (Over-distribution of) net investment income | | | 6,125,165 | | | | (14,463 | ) | | | (18,410,970 | ) | | | (24,836,582 | ) |
Accumulated net realized gain (loss) | | | (4,517,637 | ) | | | 140,270 | | | | (26,541,669 | ) | | | (31,481,916 | ) |
Net unrealized appreciation (depreciation) | | | 79,471,589 | | | | 613,067 | | | | (5,592,831 | ) | | | 709,185,396 | |
Net assets | | $ | 537,887,359 | | | $ | 25,740,897 | | | $ | 2,017,963,969 | | | $ | 3,604,681,198 | |
Authorized shares – per class | | | 2 billion | | | | Unlimited | | | | 2 billion | | | | 2 billion | |
Par value per share | | $ | 0.0001 | | | $ | 0.01 | | | $ | 0.0001 | | | $ | 0.0001 | |
| (1) | Cash pledged to collateralize the net payment obligations for investments in futures contracts. |
| (2) | Class T shares are not available for public offering. |
See accompanying notes to financial statements.
63
Statement of Operations
Six Months Ended June 30, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real
Asset Income | | | Real Estate
Securities | |
Investment Income | | | | | | | | | | | | | | | | |
Dividends | | $ | 11,504,377 | | | $ | 401,670 | | | $ | 44,516,183 | | | $ | 48,564,361 | |
Interest | | | 34,126 | | | | — | | | | 20,728,884 | | | | 420,480 | |
Foreign tax withheld on dividend income | | | (865,874 | ) | | | (39,922 | ) | | | (1,939,189 | ) | | | (56,193 | ) |
Securities lending income | | | — | | | | — | | | | — | | | | 2,812 | |
Total investment income | | | 10,672,629 | | | | 361,748 | | | | 63,305,878 | | | | 48,931,460 | |
Expenses | | | | | | | | | | | | | | | | |
Management fees | | | 2,551,561 | | | | 65,252 | | | | 7,342,154 | | | | 14,475,078 | |
12b-1 service fees – Class A Shares | | | 102,107 | | | | 18 | | | | 267,480 | | | | 517,803 | |
12b-1 distribution and service fees – Class C Shares | | | 143,199 | | | | 72 | | | | 1,140,426 | | | | 285,372 | |
12b-1 distribution and service fees – Class R3 Shares | | | 827 | | | | — | | | | — | | | | 78,390 | |
12b-1 service fees – Class T Shares(1) | | | 29 | | | | — | | | | 31 | | | | 27 | |
Shareholder servicing agent fees | | | 227,484 | | | | 5,944 | | | | 835,014 | | | | 2,529,152 | |
Custodian fees | | | 155,145 | | | | 14,473 | | | | 332,763 | | | | 175,630 | |
Directors/Trustees fees | | | 6,032 | | | | 220 | | | | 24,558 | | | | 39,985 | |
Professional fees | | | 44,620 | | | | 17,173 | | | | 52,375 | | | | 96,928 | |
Shareholder reporting expenses | | | 14,965 | | | | 951 | | | | 322,391 | | | | 355,313 | |
Federal and state registration fees | | | 52,482 | | | | 3,126 | | | | 88,222 | | | | 68,984 | |
Other | | | 9,960 | | | | 3,135 | | | | 17,404 | | | | 15,273 | |
Total expenses before fee waiver/expense reimbursement | | | 3,308,411 | | | | 110,364 | | | | 10,422,818 | | | | 18,637,935 | |
Fee waiver/expense reimbursement | | | (320,090 | ) | | | (34,971 | ) | | | — | | | | — | |
Net expenses | | | 2,988,321 | | | | 75,393 | | | | 10,422,818 | | | | 18,637,935 | |
Net investment income (loss) | | | 7,684,308 | | | | 286,355 | | | | 52,883,060 | | | | 30,293,525 | |
Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | 2,665,471 | | | | 140,270 | | | | (12,847,857 | ) | | | (14,746,027 | ) |
Futures contracts | | | — | | | | — | | | | 2,674,147 | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | (26,749,619 | ) | | | 613,067 | | | | (83,549,250 | ) | | | (7,341,178 | ) |
Futures contracts | | | — | | | | — | | | | (305,573 | ) | | | — | |
Net realized and unrealized gain (loss) | | | (24,084,148 | ) | | | 753,337 | | | | (94,028,533 | ) | | | (22,087,205 | ) |
Net increase (decrease) in net assets from operations | | $ | (16,399,840 | ) | | $ | 1,039,692 | | | $ | (41,145,473 | ) | | $ | 8,206,320 | |
| (1) | Class T shares are not available for public offering. |
See accompanying notes to financial statements.
64
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Global Infrastructure | | | | | | Global Real Estate Securities | |
| | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | | | | | | For the period
March 20, 2018
(commencement of
operations) through
June 30, 2018 | |
Operations | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 7,684,308 | | | $ | 14,182,202 | | | | | | | $ | 286,355 | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | 2,665,471 | | | | 34,485,700 | | | | | | | | 140,270 | |
Futures contracts | | | — | | | | — | | | | | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | (26,749,619 | ) | | | 55,311,953 | | | | | | | | 613,067 | |
Futures contracts | | | — | | | | — | | | | | | | | — | |
Net increase (decrease) in net assets from operations | | | (16,399,840 | ) | | | 103,979,855 | | | | | | | | 1,039,692 | |
Distributions to Shareholders | | | | | | | | | | | | | | | | |
From net investment income: | | | | | | | | | | | | | | | | |
Class A Shares | | | — | | | | (1,786,862 | ) | | | | | | | (285 | ) |
Class C Shares | | | — | | | | (381,137 | ) | | | | | | | (237 | ) |
Class R3 Shares | | | — | | | | (5,403 | ) | | | | | | | — | |
Class R6 Shares | | | — | | | | (465,059 | ) | | | | | | | (299,972 | ) |
Class I Shares | | | — | | | | (10,725,425 | ) | | | | | | | (324 | ) |
Class T Shares(1) | | | — | | | | (530 | ) | | | | | | | — | |
From accumulated net realized gains: | | | | | | | | | | | | | | | | |
Class A Shares | | | — | | | | (3,143,477 | ) | | | | | | | — | |
Class C Shares | | | — | | | | (1,055,878 | ) | | | | | | | — | |
Class R3 Shares | | | — | | | | (12,352 | ) | | | | | | | — | |
Class R6 Shares | | | — | | | | (689,041 | ) | | | | | | | — | |
Class I Shares | | | — | | | | (17,143,256 | ) | | | | | | | — | |
Class T Shares(1) | | | — | | | | (932 | ) | | | | | | | — | |
Decrease in net assets from distributions to shareholders | | | — | | | | (35,409,352 | ) | | | | | | | (300,818 | ) |
Fund Share Transactions | | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | 80,098,232 | | | | 402,437,948 | | | | | | | | 25,002,000 | |
Proceeds from shares issued to shareholders due to reinvestment of distributions | | | — | | | | 24,729,268 | | | | | | | | 23 | |
| | | 80,098,232 | | | | 427,167,216 | | | | | | | | 25,002,023 | |
Cost of shares redeemed | | | (135,415,021 | ) | | | (301,532,839 | ) | | | | | | | — | |
Net increase (decrease) in net assets from Fund share transactions | | | (55,316,789 | ) | | | 125,634,377 | | | | | | | | 25,002,023 | |
Net increase (decrease) in net assets | | | (71,716,629 | ) | | | 194,204,880 | | | | | | | | 25,740,897 | |
Net assets at the beginning of period | | | 609,603,988 | | | | 415,399,108 | | | | | | | | — | |
Net assets at the end of period | | $ | 537,887,359 | | | $ | 609,603,988 | | | | | | | $ | 25,740,897 | |
Undistributed (Over-distribution of) net investment income at the end of period | | $ | 6,125,165 | | | $ | (1,559,143 | ) | | | | | | $ | (14,463 | ) |
| (1) | Class T shares are not available for public offering. |
See accompanying notes to financial statements.
65
Statement of Changes in Net Assets (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | Real Asset Income | | | | | | Real Estate Securities | |
| | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | | | | | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | |
Operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 52,883,060 | | | $ | 82,735,064 | | | | | | | $ | 30,293,525 | | | $ | 71,702,973 | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | (12,847,857 | ) | | | 22,133,762 | | | | | | | | (14,746,027 | ) | | | 509,608,165 | |
Futures contracts | | | 2,674,147 | | | | (1,474,938 | ) | | | | | | | — | | | | — | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | | | | | |
Investments and foreign currency | | | (83,549,250 | ) | | | 81,496,437 | | | | | | | | (7,341,178 | ) | | | (357,541,933 | ) |
Futures contracts | | | (305,573 | ) | | | 164,232 | | | | | | | | — | | | | — | |
Net increase (decrease) in net assets from operations | | | (41,145,473 | ) | | | 185,054,557 | | | | | | | | 8,206,320 | | | | 223,769,205 | |
Distributions to Shareholders | | | | | | | | | | | | | | | | | | | | |
From net investment income:(2) | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | (5,490,155 | ) | | | (11,889,954 | ) | | | | | | | (4,994,881 | ) | | | (8,821,795 | ) |
Class C Shares | | | (4,974,486 | ) | | | (10,520,728 | ) | | | | | | | (468,673 | ) | | | (687,996 | ) |
Class R3 Shares | | | — | | | | — | | | | | | | | (337,853 | ) | | | (604,809 | ) |
Class R6 Shares | | | (788,435 | ) | | | (866,572 | ) | | | | | | | (4,303,374 | ) | | | (5,200,299 | ) |
Class I Shares | | | (42,263,540 | ) | | | (75,567,965 | ) | | | | | | | (35,745,836 | ) | | | (62,520,427 | ) |
Class T Shares(1) | | | (623 | ) | | | (868 | ) | | | | | | | (267 | ) | | | (302 | ) |
From accumulated net realized gains: | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | — | | | | — | | | | | | | | — | | | | (48,611,490 | ) |
Class C Shares | | | — | | | | — | | | | | | | | — | | | | (7,546,887 | ) |
Class R3 Shares | | | — | | | | — | | | | | | | | — | | | | (3,883,041 | ) |
Class R6 Shares | | | — | | | | — | | | | | | | | — | | | | (28,246,190 | ) |
Class I Shares | | | — | | | | — | | | | | | | | — | | | | (311,294,960 | ) |
Class T Shares(1) | | | — | | | | — | | | | | | | | — | | | | (2,627 | ) |
Decrease in net assets from distributions to shareholders | | | (53,517,239 | ) | | | (98,846,087 | ) | | | | | | | (45,850,884 | ) | | | (477,420,823 | ) |
Fund Share Transactions | | | | | | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | 346,713,437 | | | | 1,113,449,576 | | | | | | | | 546,964,548 | | | | 1,001,907,714 | |
Proceeds from shares issued to shareholders due to reinvestment of distributions | | | 48,803,406 | | | | 91,668,223 | | | | | | | | 36,349,083 | | | | 379,758,213 | |
| | | 395,516,843 | | | | 1,205,117,799 | | | | | | | | 583,313,631 | | | | 1,381,665,927 | |
Cost of shares redeemed | | | (386,639,742 | ) | | | (458,636,990 | ) | | | | | | | (727,741,092 | ) | | | (1,968,091,405 | ) |
Net increase (decrease) in net assets from Fund share transactions | | | 8,877,101 | | | | 746,480,809 | | | | | | | | (144,427,461 | ) | | | (586,425,478 | ) |
Net increase (decrease) in net assets | | | (85,785,611 | ) | | | 832,689,279 | | | | | | | | (182,072,025 | ) | | | (840,077,096 | ) |
Net assets at the beginning of period | | | 2,103,749,580 | | | | 1,271,060,301 | | | | | | | | 3,786,753,223 | | | | 4,626,830,319 | |
Net assets at the end of period | | $ | 2,017,963,969 | | | $ | 2,103,749,580 | | | | | | | $ | 3,604,681,198 | | | $ | 3,786,753,223 | |
Undistributed (Over-distribution of) net investment income at the end of period | | $ | (18,410,970 | ) | | $ | (17,776,791 | ) | | | | | | $ | (24,836,582 | ) | | $ | (9,279,223 | ) |
| (1) | Class T shares are not available for public offering. |
| (2) | Represents distributions paid “from and in excess of net investment income” for Real Asset Income and Real Estate Securities for the six months ended June 30, 2018 (as described in Note 1 – General Information and Significant Accounting Policies, Dividends and Distributions to shareholders). |
See accompanying notes to financial statements.
66
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67
Financial Highlights
(Unaudited)
Global Infrastructure
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | Investment Operations | | | | | | Less Distributions | | | | |
| | | | | | | | | |
Class (Commencement Date) Year Ended December 31, | | Beginning
NAV | | | Net
Investment
Income
(Loss)(a) | | | Net
Realized/
Unrealized
Gain (Loss) | | | Total | | | | | | From
Net
Investment
Income | | | From
Accumulated
Net Realized
Gains | | | Total | | | Ending
NAV | |
Class A (12/07) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | $ | 10.93 | | | $ | 0.13 | | | $ | (0.39 | ) | | $ | (0.26 | ) | | | | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.67 | |
2017 | | | 9.69 | | | | 0.22 | | | | 1.66 | | | | 1.88 | | | | | | | | (0.23 | ) | | | (0.41 | ) | | | (0.64 | ) | | | 10.93 | |
2016 | | | 9.75 | | | | 0.25 | | | | 0.49 | | | | 0.74 | | | | | | | | (0.30 | ) | | | (0.50 | ) | | | (0.80 | ) | | | 9.69 | |
2015 | | | 10.79 | | | | 0.19 | | | | (0.93 | ) | | | (0.74 | ) | | | | | | | (0.20 | ) | | | (0.10 | ) | | | (0.30 | ) | | | 9.75 | |
2014 | | | 10.35 | | | | 0.20 | | | | 1.24 | | | | 1.44 | | | | | | | | (0.16 | ) | | | (0.84 | ) | | | (1.00 | ) | | | 10.79 | |
2013 | | | 9.56 | | | | 0.21 | | | | 1.17 | | | | 1.38 | | | | | | | | (0.16 | ) | | | (0.43 | ) | | | (0.59 | ) | | | 10.35 | |
Class C (11/08) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 10.85 | | | | 0.10 | | | | (0.40 | ) | | | (0.30 | ) | | | | | | | — | | | | — | | | | — | | | | 10.55 | |
2017 | | | 9.62 | | | | 0.14 | | | | 1.65 | | | | 1.79 | | | | | | | | (0.15 | ) | | | (0.41 | ) | | | (0.56 | ) | | | 10.85 | |
2016 | | | 9.69 | | | | 0.16 | | | | 0.49 | | | | 0.65 | | | | | | | | (0.22 | ) | | | (0.50 | ) | | | (0.72 | ) | | | 9.62 | |
2015 | | | 10.71 | | | | 0.11 | | | | (0.91 | ) | | | (0.80 | ) | | | | | | | (0.12 | ) | | | (0.10 | ) | | | (0.22 | ) | | | 9.69 | |
2014 | | | 10.27 | | | | 0.11 | | | | 1.23 | | | | 1.34 | | | | | | | | (0.06 | ) | | | (0.84 | ) | | | (0.90 | ) | | | 10.71 | |
2013 | | | 9.49 | | | | 0.13 | | | | 1.17 | | | | 1.30 | | | | | | | | (0.09 | ) | | | (0.43 | ) | | | (0.52 | ) | | | 10.27 | |
Class R3 (11/08) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 11.11 | | | | 0.13 | | | | (0.41 | ) | | | (0.28 | ) | | | | | | | — | | | | — | | | | — | | | | 10.83 | |
2017 | | | 9.85 | | | | 0.20 | | | | 1.68 | | | | 1.88 | | | | | | | | (0.21 | ) | | | (0.41 | ) | | | (0.62 | ) | | | 11.11 | |
2016 | | | 9.90 | | | | 0.22 | | | | 0.51 | | | | 0.73 | | | | | | | | (0.28 | ) | | | (0.50 | ) | | | (0.78 | ) | | | 9.85 | |
2015 | | | 10.95 | | | | 0.17 | | | | (0.95 | ) | | | (0.78 | ) | | | | | | | (0.17 | ) | | | (0.10 | ) | | | (0.27 | ) | | | 9.90 | |
2014 | | | 10.48 | | | | 0.18 | | | | 1.25 | | | | 1.43 | | | | | | | | (0.12 | ) | | | (0.84 | ) | | | (0.96 | ) | | | 10.95 | |
2013 | | | 9.68 | | | | 0.19 | | | | 1.18 | | | | 1.37 | | | | | | | | (0.14 | ) | | | (0.43 | ) | | | (0.57 | ) | | | 10.48 | |
Class R6 (6/16) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 10.91 | | | | 0.14 | | | | (0.38 | ) | | | (0.24 | ) | | | | | | | — | | | | — | | | | — | | | | 10.67 | |
2017 | | | 9.65 | | | | 0.27 | | | | 1.66 | | | | 1.93 | | | | | | | | (0.26 | ) | | | (0.41 | ) | | | (0.67 | ) | | | 10.91 | |
2016(e) | | | 11.06 | | | | 0.11 | | | | (0.67 | ) | | | (0.56 | ) | | | | | | | (0.35 | ) | | | (0.50 | ) | | | (0.85 | ) | | | 9.65 | |
Class I (12/07) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 10.89 | | | | 0.15 | | | | (0.39 | ) | | | (0.24 | ) | | | | | | | — | | | | — | | | | — | | | | 10.65 | |
2017 | | | 9.66 | | | | 0.26 | | | | 1.64 | | | | 1.90 | | | | | | | | (0.26 | ) | | | (0.41 | ) | | | (0.67 | ) | | | 10.89 | |
2016 | | | 9.73 | | | | 0.27 | | | | 0.50 | | | | 0.77 | | | | | | | | (0.34 | ) | | | (0.50 | ) | | | (0.84 | ) | | | 9.66 | |
2015 | | | 10.77 | | | | 0.22 | | | | (0.94 | ) | | | (0.72 | ) | | | | | | | (0.22 | ) | | | (0.10 | ) | | | (0.32 | ) | | | 9.73 | |
2014 | | | 10.35 | | | | 0.21 | | | | 1.26 | | | | 1.47 | | | | | | | | (0.21 | ) | | | (0.84 | ) | | | (1.05 | ) | | | 10.77 | |
2013 | | | 9.57 | | | | 0.24 | | | | 1.17 | | | | 1.41 | | | | | | | | (0.20 | ) | | | (0.43 | ) | | | (0.63 | ) | | | 10.35 | |
Class T (5/17)(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 10.90 | | | | 0.14 | | | | (0.40 | ) | | | (0.26 | ) | | | | | | | — | | | | — | | | | — | | | | 10.64 | |
2017(g) | | | 11.04 | | | | 0.12 | | | | 0.39 | | | | 0.51 | | | | | | | | (0.24 | ) | | | (0.41 | ) | | | (0.65 | ) | | | 10.90 | |
68
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(c) | | | | |
| | | | | | | | |
Total
Return(b) | | | Ending
Net
Assets
(000) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | Portfolio
Turnover
Rate(d) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.38 | )% | | $ | 78,348 | | | | | | | | 1.33 | %* | | | 2.45 | %* | | | | | | | 1.22 | %* | | | 2.57 | %* | | | 86 | % |
| | 19.38 | | | | 87,876 | | | | | | | | 1.42 | | | | 1.85 | | | | | | | | 1.22 | | | | 2.05 | | | | 161 | |
| | 7.61 | | | | 70,173 | | | | | | | | 1.45 | | | | 2.20 | | | | | | | | 1.22 | | | | 2.42 | | | | 149 | |
| | (6.89 | ) | | | 287,424 | | | | | | | | 1.45 | | | | 1.59 | | | | | | | | 1.22 | | | | 1.82 | | | | 133 | |
| | 14.11 | | | | 268,672 | | | | | | | | 1.43 | | | | 1.57 | | | | | | | | 1.22 | | | | 1.77 | | | | 162 | |
| | 14.73 | | | | 107,137 | | | | | | | | 1.43 | | | | 1.87 | | | | | | | | 1.23 | | | | 2.07 | | | | 166 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.76 | ) | | | 28,916 | | | | | | | | 2.08 | * | | | 1.75 | * | | | | | | | 1.97 | * | | | 1.86 | * | | | 86 | |
| | 18.55 | | | | 29,227 | | | | | | | | 2.17 | | | | 1.11 | | | | | | | | 1.97 | | | | 1.31 | | | | 161 | |
| | 6.71 | | | | 22,868 | | | | | | | | 2.21 | | | | 1.30 | | | | | | | | 1.97 | | | | 1.53 | | | | 149 | |
| | (7.50 | ) | | | 22,307 | | | | | | | | 2.20 | | | | 0.83 | | | | | | | | 1.97 | | | | 1.05 | | | | 133 | |
| | 13.28 | | | | 24,820 | | | | | | | | 2.18 | | | | 0.74 | | | | | | | | 1.97 | | | | 0.95 | | | | 162 | |
| | 13.90 | | | | 20,127 | | | | | | | | 2.18 | | | | 1.11 | | | | | | | | 1.98 | | | | 1.31 | | | | 166 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.52 | ) | | | 301 | | | | | | | | 1.58 | * | | | 2.24 | * | | | | | | | 1.47 | * | | | 2.35 | * | | | 86 | |
| | 19.03 | | | | 337 | | | | | | | | 1.67 | | | | 1.63 | | | | | | | | 1.47 | | | | 1.83 | | | | 161 | |
| | 7.37 | | | | 730 | | | | | | | | 1.71 | | | | 1.81 | | | | | | | | 1.47 | | | | 2.04 | | | | 149 | |
| | (7.10 | ) | | | 607 | | | | | | | | 1.70 | | | | 1.39 | | | | | | | | 1.47 | | | | 1.62 | | | | 133 | |
| | 13.86 | | | | 399 | | | | | | | | 1.68 | | | | 1.33 | | | | | | | | 1.47 | | | | 1.54 | | | | 162 | |
| | 14.40 | | | | 138 | | | | | | | | 1.67 | | | | 1.61 | | | | | | | | 1.48 | | | | 1.81 | | | | 166 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.20 | ) | | | 10,917 | | | | | | | | 1.00 | * | | | 2.47 | * | | | | | | | 0.89 | * | | | 2.57 | * | | | 86 | |
| | 19.95 | | | | 19,575 | | | | | | | | 1.02 | | | | 2.24 | | | | | | | | 0.80 | | | | 2.46 | | | | 161 | |
| | (5.08 | ) | | | 7,627 | | | | | | | | 1.09 | * | | | 1.78 | * | | | | | | | 0.86 | * | | | 2.02 | * | | | 149 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.20 | ) | | | 419,381 | | | | | | | | 1.08 | * | | | 2.69 | * | | | | | | | 0.97 | * | | | 2.80 | * | | | 86 | |
| | 19.61 | | | | 472,564 | | | | | | | | 1.17 | | | | 2.14 | | | | | | | | 0.97 | | | | 2.34 | | | | 161 | |
| | 7.91 | | | | 314,001 | | | | | | | | 1.20 | | | | 2.30 | | | | | | | | 0.97 | | | | 2.54 | | | | 149 | |
| | (6.67 | ) | | | 320,406 | | | | | | | | 1.20 | | | | 1.83 | | | | | | | | 0.97 | | | | 2.05 | | | | 133 | |
| | 14.46 | | | | 374,631 | | | | | | | | 1.18 | | | | 1.68 | | | | | | | | 0.97 | | | | 1.88 | | | | 162 | |
| | 15.03 | | | | 525,149 | | | | | | | | 1.18 | | | | 2.12 | | | | | | | | 0.98 | | | | 2.33 | | | | 166 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.39 | ) | | | 24 | | | | | | | | 1.34 | * | | | 2.49 | * | | | | | | | 1.22 | * | | | 2.60 | * | | | 86 | |
| | 4.58 | | | | 25 | | | | | | | | 1.44 | * | | | 1.55 | * | | | | | | | 1.22 | * | | | 1.76 | * | | | 161 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. | |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. | |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. | |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. | |
| (e) | For the period June 30, 2016 (commencement of operations) through December 31, 2016. | |
| (f) | Class T shares are not available for public offering. | |
| (g) | For the period May 31, 2017 (commencement of operations) through December 31, 2017. | |
| (h) | For the six months ended June 30, 2018. | |
See accompanying notes to financial statements.
69
Financial Highlights (Unaudited) (continued)
Global Real Estate Securities
Selected data for a share oustanding througout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | Investment Operations | | | | | | Less Distributions | | | | |
| | | | | | | | | |
Class (Commencement Date) Year Ended December 31, | | Beginning
NAV | | | Net
Investment
Income
(Loss)(a) | | | Net
Realized/
Unrealized
Gain (Loss) | | | Total | | | | | | From
Net
Investment
Income | | | From
Accumulated
Net Realized
Gains | | | Total | | | Ending
NAV | |
Class A (03/18) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(e) | | $ | 20.00 | | | $ | 0.22 | | | $ | 0.60 | | | $ | 0.82 | | | | | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 20.59 | |
Class C (03/18) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(e) | | | 20.00 | | | | 0.17 | | | | 0.60 | | | | 0.77 | | | | | | | | (0.19 | ) | | | — | | | | (0.19 | ) | | | 20.58 | |
Class R6 (03/18) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(e) | | | 20.00 | | | | 0.23 | | | | 0.60 | | | | 0.83 | | | | | | | | (0.24 | ) | | | — | | | | (0.24 | ) | | | 20.59 | |
Class I (03/18) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(e) | | | 20.00 | | | | 0.23 | | | | 0.60 | | | | 0.83 | | | | | | | | (0.24 | ) | | | — | | | | (0.24 | ) | | | 20.59 | |
70
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(c) | | | | |
| | | | | | | | |
Total
Return(b) | | | Ending
Net
Assets
(000) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | | | | Expenses | | | Net Investment
Income
(Loss) | | | Portfolio
Turnover
Rate(d) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4.09 | % | | $ | 26 | | | | | | | | 1.77 | %* | | | 3.28 | %* | | | | | | | 1.30 | %* | | | 3.75 | %* | | | 48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3.85 | | | | 26 | | | | | | | | 2.53 | * | | | 2.51 | * | | | | | | | 2.05 | * | | | 2.99 | * | | | 48 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4.15 | | | | 25,662 | | | | | | | | 1.54 | * | | | 3.50 | * | | | | | | | 1.05 | * | | | 3.99 | * | | | 48 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4.15 | | | | 28 | | | | | | | | 1.53 | * | | | 3.56 | * | | | | | | | 1.05 | * | | | 4.04 | * | | | 48 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. | |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. | |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. | |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. | |
| (e) | For the period March 20, 2018 (commencement of operations) though June 30, 2018. | |
See accompanying notes to financial statements.
71
Financial Highlights (Unaudited) (continued)
Real Asset Income
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | Investment Operations | | | | | | Less Distributions | | | | |
| | | | | | | | | | |
Class (Commencement Date) Year Ended December 31, | | 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 | | | Ending
NAV | |
Class A (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | $ | 24.14 | | | $ | 0.59 | | | $ | (1.06 | ) | | $ | (0.47 | ) | | | | | | $ | (0.59 | )** | | $ | — | | | $ | — | | | $ | (0.59 | ) | | $ | 23.08 | |
2017 | | | 22.76 | | | | 1.11 | | | | 1.59 | | | | 2.70 | | | | | | | | (1.32 | ) | | | — | | | | — | | | | (1.32 | ) | | | 24.14 | |
2016 | | | 21.87 | | | | 1.08 | | | | 1.00 | | | | 2.08 | | | | | | | | (1.12 | ) | | | — | | | | (0.07 | ) | | | (1.19 | ) | | | 22.76 | |
2015 | | | 23.78 | | | | 1.08 | | | | (1.80 | ) | | | (0.72 | ) | | | | | | | (1.08 | ) | | | (0.01 | ) | | | (0.10 | ) | | | (1.19 | ) | | | 21.87 | |
2014 | | | 22.01 | | | | 1.15 | | | | 2.18 | | | | 3.33 | | | | | | | | (1.16 | ) | | | (0.40 | ) | | | — | | | | (1.56 | ) | | | 23.78 | |
2013 | | | 22.27 | | | | 1.14 | | | | 0.21 | | | | 1.35 | | | | | | | | (1.12 | ) | | | (0.49 | ) | | | — | | | | (1.61 | ) | | | 22.01 | |
Class C (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 24.15 | | | | 0.50 | | �� | | (1.05 | ) | | | (0.55 | ) | | | | | | | (0.51 | )** | | | — | | | | — | | | | (0.51 | ) | | | 23.09 | |
2017 | | | 22.77 | | | | 0.94 | | | | 1.59 | | | | 2.53 | | | | | | | | (1.15 | ) | | | — | | | | — | | | | (1.15 | ) | | | 24.15 | |
2016 | | | 21.89 | | | | 0.91 | | | | 0.99 | | | | 1.90 | | | | | | | | (0.95 | ) | | | — | | | | (0.07 | ) | | | (1.02 | ) | | | 22.77 | |
2015 | | | 23.79 | | | | 0.92 | | | | (1.81 | ) | | | (0.89 | ) | | | | | | | (0.90 | ) | | | (0.01 | ) | | | (0.10 | ) | | | (1.01 | ) | | | 21.89 | |
2014 | | | 22.01 | | | | 0.98 | | | | 2.18 | | | | 3.16 | | | | | | | | (0.98 | ) | | | (0.40 | ) | | | — | | | | (1.38 | ) | | | 23.79 | |
2013 | | | 22.26 | | | | 0.99 | | | | 0.19 | | | | 1.18 | | | | | | | | (0.94 | ) | | | (0.49 | ) | | | — | | | | (1.43 | ) | | | 22.01 | |
Class R6 (6/16) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 24.24 | | | | 0.63 | | | | (1.06 | ) | | | (0.43 | ) | | | | | | | (0.63 | )** | | | — | | | | — | | | | (0.63 | ) | | | 23.18 | |
2017 | | | 22.83 | | | | 1.22 | | | | 1.58 | | | | 2.80 | | | | | | | | (1.39 | ) | | | — | | | | — | | | | (1.39 | ) | | | 24.24 | |
2016(e) | | | 23.49 | | | | 0.48 | | | | (0.57 | ) | | | (0.09 | ) | | | | | | | (0.50 | ) | | | — | | | | (0.07 | ) | | | (0.57 | ) | | | 22.83 | |
Class I (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 24.14 | | | | 0.62 | | | | (1.06 | ) | | | (0.44 | ) | | | | | | | (0.62 | )** | | | — | | | | — | | | | (0.62 | ) | | | 23.08 | |
2017 | | | 22.76 | | | | 1.18 | | | | 1.58 | | | | 2.76 | | | | | | | | (1.38 | ) | | | — | | | | — | | | | (1.38 | ) | | | 24.14 | |
2016 | | | 21.88 | | | | 1.14 | | | | 0.98 | | | | 2.12 | | | | | | | | (1.17 | ) | | | — | | | | (0.07 | ) | | | (1.24 | ) | | | 22.76 | |
2015 | | | 23.78 | | | | 1.14 | | | | (1.79 | ) | | | (0.65 | ) | | | | | | | (1.14 | ) | | | (0.01 | ) | | | (0.10 | ) | | | (1.25 | ) | | | 21.88 | |
2014 | | | 22.01 | | | | 1.27 | | | | 2.12 | | | | 3.39 | | | | | | | | (1.22 | ) | | | (0.40 | ) | | | — | | | | (1.62 | ) | | | 23.78 | |
2013 | | | 22.27 | | | | 1.21 | | | | 0.19 | | | | 1.40 | | | | | | | | (1.17 | ) | | | (0.49 | ) | | | — | | | | (1.66 | ) | | | 22.01 | |
Class T (5/17)(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(h) | | | 24.14 | | | | 0.59 | | | | (1.06 | ) | | | (0.47 | ) | | | | | | | (0.59 | )** | | | — | | | | — | | | | (0.59 | ) | | | 23.08 | |
2017(g) | | | 23.86 | | | | 0.58 | | | | 0.53 | | | | 1.11 | | | | | | | | (0.83 | ) | | | — | | | | — | | | | (0.83 | ) | | | 24.14 | |
72
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(c) | | | | |
| | | | | | | | |
Total
Return(b) | | | Ending
Net
Assets
(000) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | Portfolio
Turnover
Rate(d) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.88 | )% | | $ | 208,603 | | | | | | | | 1.14 | %* | | | 5.06 | %* | | | | | | | 1.14 | %* | | | 5.06 | %* | | | 53 | % |
| | 12.07 | | | | 225,282 | | | | | | | | 1.15 | | | | 4.64 | | | | | | | | 1.15 | | | | 4.64 | | | | 84 | |
| | 9.60 | | | | 234,495 | | | | | | | | 1.18 | | | | 4.72 | | | | | | | | 1.16 | | | | 4.74 | | | | 89 | |
| | (3.19 | ) | | | 161,064 | | | | | | | | 1.18 | | | | 4.68 | | | | | | | | 1.16 | | | | 4.69 | | | | 82 | |
| | 15.40 | | | | 115,322 | | | | | | | | 1.25 | | | | 4.77 | | | | | | | | 1.17 | | | | 4.85 | | | | 86 | |
| | 6.13 | | | | 49,174 | | | | | | | | 1.34 | | | | 4.87 | | | | | | | | 1.17 | | | | 5.05 | | | | 141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.25 | ) | | | 219,412 | | | | | | | | 1.89 | * | | | 4.31 | * | | | | | | | 1.89 | * | | | 4.31 | * | | | 53 | |
| | 11.25 | | | | 241,844 | | | | | | | | 1.90 | | | | 3.94 | | | | | | | | 1.90 | | | | 3.94 | | | | 84 | |
| | 8.74 | | | | 182,744 | | | | | | | | 1.93 | | | | 3.97 | | | | | | | | 1.91 | | | | 3.99 | | | | 89 | |
| | (3.88 | ) | | | 129,301 | | | | | | | | 1.92 | | | | 3.99 | | | | | | | | 1.91 | | | | 4.01 | | | | 82 | |
| | 14.54 | | | | 65,928 | | | | | | | | 2.00 | | | | 4.07 | | | | | | | | 1.92 | | | | 4.14 | | | | 86 | |
| | 5.38 | | | | 24,648 | | | | | | | | 2.09 | | | | 4.19 | | | | | | | | 1.92 | | | | 4.37 | | | | 141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.77 | ) | | | 30,151 | | | | | | | | 0.81 | * | | | 5.44 | * | | | | | | | 0.81 | * | | | 5.44 | * | | | 53 | |
| | 12.47 | | | | 29,332 | | | | | | | | 0.81 | | | | 5.10 | | | | | | | | 0.81 | | | | 5.10 | | | | 84 | |
| | (0.43 | ) | | | 7,237 | | | | | | | | 0.84 | * | | | 4.08 | * | | | | | | | 0.82 | * | | | 4.11 | * | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.75 | ) | | | 1,559,773 | | | | | | | | 0.89 | * | | | 5.33 | * | | | | | | | 0.89 | * | | | 5.33 | * | | | 53 | |
| | 12.35 | | | | 1,607,267 | | | | | | | | 0.90 | | | | 4.96 | | | | | | | | 0.90 | | | | 4.96 | | | | 84 | |
| | 9.82 | | | | 846,584 | | | | | | | | 0.93 | | | | 4.98 | | | | | | | | 0.91 | | | | 5.00 | | | | 89 | |
| | (2.90 | ) | | | 555,149 | | | | | | | | 0.93 | | | | 4.97 | | | | | | | | 0.91 | | | | 4.98 | | | | 82 | |
| | 15.69 | | | | 345,747 | | | | | | | | 0.99 | | | | 5.29 | | | | | | | | 0.92 | | | | 5.37 | | | | 86 | |
| | 6.40 | | | | 58,677 | | | | | | | | 1.10 | | | | 5.11 | | | | | | | | 0.92 | | | | 5.29 | | | | 141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.88 | ) | | | 24 | | | | | | | | 1.14 | * | | | 5.08 | * | | | | | | | 1.14 | * | | | 5.08 | * | | | 53 | |
| | 4.68 | | | | 25 | | | | | | | | 1.16 | * | | | 4.09 | * | | | | | | | 1.16 | * | | | 4.09 | * | | | 84 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. | |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. | |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. | |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. | |
| (e) | For the period June 30, 2016 (commencement of operations) through December 31, 2016. | |
| (f) | Class T shares are not available for public offering. | |
| (g) | For the period May 31, 2017 (commencement of operations) through December 31, 2017. | |
| (h) | For the six months ended June 30, 2018. | |
| ** | Represents distributions paid “from and in excess of net investment income” for the six months ended June 30, 2018 (as described in Note 1 – General Information and Significant Accounting Policies, Dividends and Distributions to Shareholders. | |
See accompanying notes to financial statements.
73
Financial Highlights (Unaudited) (continued)
Real Estate Securities
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | Investment Operations | | | | | | Less Distributions | | | | |
| | | | | | | | | | |
Class (Commencement Date) Year Ended December 31, | | 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 | | | Ending
NAV | |
Class A (9/95) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | $ | 20.23 | | | $ | 0.14 | | | $ | (0.09 | ) | | $ | 0.05 | | | | | | | $ | (0.23 | )** | | $ | — | | | $ | — | | | $ | (0.23 | ) | | $ | 20.05 | |
2017 | | | 21.75 | | | | 0.32 | | | | 0.85 | | | | 1.17 | | | | | | | | (0.37 | ) | | | (2.32 | ) | | | — | | | | (2.69 | ) | | | 20.23 | |
2016 | | | 22.66 | | | | 0.31 | | | | 1.14 | | | | 1.45 | | | | | | | | (0.31 | ) | | | (2.05 | ) | | | — | | | | (2.36 | ) | | | 21.75 | |
2015 | | | 23.79 | | | | 0.32 | | | | 0.38 | | | | 0.70 | | | | | | | | (0.37 | ) | | | (1.46 | ) | | | — | | | | (1.83 | ) | | | 22.66 | |
2014 | | | 19.46 | | | | 0.32 | | | | 5.62 | | | | 5.94 | | | | | | | | (0.33 | ) | | | (1.28 | ) | | | — | | | | (1.61 | ) | | | 23.79 | |
2013 | | | 21.02 | | | | 0.27 | | | | (0.06 | ) | | | 0.21 | | | | | | | | (0.29 | ) | | | (1.35 | ) | | | (0.13 | ) | | | (1.77 | ) | | | 19.46 | |
Class C (2/00) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | | 19.63 | | | | 0.06 | | | | (0.06 | ) | | | — | | | | | | | | (0.16 | )** | | | — | | | | — | | | | (0.16 | ) | | | 19.47 | |
2017 | | | 21.18 | | | | 0.15 | | | | 0.82 | | | | 0.97 | | | | | | | | (0.20 | ) | | | (2.32 | ) | | | — | | | | (2.52 | ) | | | 19.63 | |
2016 | | | 22.11 | | | | 0.12 | | | | 1.12 | | | | 1.24 | | | | | | | | (0.12 | ) | | | (2.05 | ) | | | — | | | | (2.17 | ) | | | 21.18 | |
2015 | | | 23.24 | | | | 0.15 | | | | 0.36 | | | | 0.51 | | | | | | | | (0.18 | ) | | | (1.46 | ) | | | — | | | | (1.64 | ) | | | 22.11 | |
2014 | | | 19.03 | | | | 0.15 | | | | 5.50 | | | | 5.65 | | | | | | | | (0.16 | ) | | | (1.28 | ) | | | — | | | | (1.44 | ) | | | 23.24 | |
2013 | | | 20.59 | | | | 0.12 | | | | (0.08 | ) | | | 0.04 | | | | | | | | (0.12 | ) | | | (1.35 | ) | | | (0.13 | ) | | | (1.60 | ) | | | 19.03 | |
Class R3 (9/01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | | 20.56 | | | | 0.12 | | | | (0.09 | ) | | | 0.03 | | | | | | | | (0.21 | )** | | | — | | | | — | | | | (0.21 | ) | | | 20.38 | |
2017 | | | 22.08 | | | | 0.27 | | | | 0.85 | | | | 1.12 | | | | | | | | (0.32 | ) | | | (2.32 | ) | | | — | | | | (2.64 | ) | | | 20.56 | |
2016 | | | 23.00 | | | | 0.26 | | | | 1.16 | | | | 1.42 | | | | | | | | (0.29 | ) | | | (2.05 | ) | | | — | | | | (2.34 | ) | | | 22.08 | |
2015 | | | 24.13 | | | | 0.25 | | | | 0.40 | | | | 0.65 | | | | | | | | (0.32 | ) | | | (1.46 | ) | | | — | | | | (1.78 | ) | | | 23.00 | |
2014 | | | 19.72 | | | | 0.28 | | | | 5.69 | | | | 5.97 | | | | | | | | (0.28 | ) | | | (1.28 | ) | | | — | | | | (1.56 | ) | | | 24.13 | |
2013 | | | 21.29 | | | | 0.23 | | | | (0.08 | ) | | | 0.15 | | | | | | | | (0.24 | ) | | | (1.35 | ) | | | (0.13 | ) | | | (1.72 | ) | | | 19.72 | |
Class R6 (4/13) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | | 20.75 | | | | 0.20 | | | | (0.10 | ) | | | 0.10 | | | | | | | | (0.26 | )** | | | — | | | | — | | | | (0.26 | ) | | | 20.59 | |
2017 | | | 22.23 | | | | 0.46 | | | | 0.82 | | | | 1.28 | | | | | | | | (0.44 | ) | | | (2.32 | ) | | | — | | | | (2.76 | ) | | | 20.75 | |
2016 | | | 23.07 | | | | 0.43 | | | | 1.16 | | | | 1.59 | | | | | | | | (0.38 | ) | | | (2.05 | ) | | | — | | | | (2.43 | ) | | | 22.23 | |
2015 | | | 24.17 | | | | 0.43 | | | | 0.37 | | | | 0.80 | | | | | | | | (0.44 | ) | | | (1.46 | ) | | | — | | | | (1.90 | ) | | | 23.07 | |
2014 | | | 19.72 | | | | 0.48 | | | | 5.65 | | | | 6.13 | | | | | | | | (0.40 | ) | | | (1.28 | ) | | | — | | | | (1.68 | ) | | | 24.17 | |
2013(c) | | | 24.06 | | | | 0.31 | | | | (2.94 | ) | | | (2.63 | ) | | | | | | | (0.23 | ) | | | (1.35 | ) | | | (0.13 | ) | | | (1.71 | ) | | | 19.72 | |
Class I (6/95) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | | 20.55 | | | | 0.17 | | | | (0.08 | ) | | | 0.09 | | | | | | | | (0.26 | )** | | | — | | | | — | | | | (0.26 | ) | | | 20.38 | |
2017 | | | 22.07 | | | | 0.40 | | | | 0.84 | | | | 1.24 | | | | | | | | (0.44 | ) | | | (2.32 | ) | | | — | | | | (2.76 | ) | | | 20.55 | |
2016 | | | 22.97 | | | | 0.38 | | | | 1.15 | | | | 1.53 | | | | | | | | (0.38 | ) | | | (2.05 | ) | | | — | | | | (2.43 | ) | | | 22.07 | |
2015 | | | 24.10 | | | | 0.38 | | | | 0.39 | | | | 0.77 | | | | | | | | (0.44 | ) | | | (1.46 | ) | | | — | | | | (1.90 | ) | | | 22.97 | |
2014 | | | 19.70 | | | | 0.40 | | | | 5.68 | | | | 6.08 | | | | | | | | (0.40 | ) | | | (1.28 | ) | | | — | | | | (1.68 | ) | | | 24.10 | |
2013 | | | 21.26 | | | | 0.35 | | | | (0.08 | ) | | | 0.27 | | | | | | | | (0.35 | ) | | | (1.35 | ) | | | (0.13 | ) | | | (1.83 | ) | | | 19.70 | |
Class T (5/17)(e) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2018(g) | | | 20.56 | | | | 0.15 | | | | (0.08 | ) | | | 0.07 | | | | | | | | (0.24 | )** | | | — | | | | — | | | | (0.24 | ) | | | 20.39 | |
2017(f) | | | 22.11 | | | | 0.19 | | | | 0.85 | | | | 1.04 | | | | | | | | (0.27 | ) | | | (2.32 | ) | | | — | | | | (2.59 | ) | | | 20.56 | |
74
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | | | | | |
| | | | | | |
Total
Return(b) | | | Ending
Net
Assets
(000) | | | | | | Expenses | | | Net
Investment
Income
(Loss) | | | | | | Portfolio
Turnover
Rate(d) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 0.30 | % | | $ | 426,649 | | | | | | | | 1.28 | %* | | | 1.50 | %* | | | | | | | 67 | % |
| | 5.34 | | | | 459,034 | | | | | | | | 1.29 | | | | 1.47 | | | | | | | | 131 | |
| | 6.58 | | | | 679,318 | | | | | | | | 1.30 | | | | 1.32 | | | | | | | | 139 | |
| | 3.22 | | | | 690,025 | | | | | | | | 1.30 | | | | 1.37 | | | | | | | | 104 | |
| | 30.94 | | | | 751,098 | | | | | | | | 1.30 | | | | 1.44 | | | | | | | | 89 | |
| | 1.04 | | | | 634,978 | | | | | | | | 1.25 | | | | 1.25 | | | | | | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (0.04 | ) | | | 56,592 | | | | | | | | 2.03 | * | | | 0.69 | * | | | | | | | 67 | |
| | 4.59 | | | | 66,953 | | | | | | | | 2.04 | | | | 0.71 | | | | | | | | 131 | |
| | 5.76 | | | | 89,123 | | | | | | | | 2.05 | | | | 0.55 | | | | | | | | 139 | |
| | 2.45 | | | | 93,499 | | | | | | | | 2.05 | | | | 0.65 | | | | | | | | 104 | |
| | 29.99 | | | | 91,172 | | | | | | | | 2.05 | | | | 0.69 | | | | | | | | 89 | |
| | 0.25 | | | | 72,172 | | | | | | | | 2.00 | | | | 0.56 | | | | | | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 0.20 | | | | 30,795 | | | | | | | | 1.53 | * | | | 1.25 | * | | | | | | | 67 | |
| | 5.08 | | | | 36,829 | | | | | | | | 1.54 | | | | 1.23 | | | | | | | | 131 | |
| | 6.31 | | | | 53,413 | | | | | | | | 1.55 | | | | 1.11 | | | | | | | | 139 | |
| | 2.95 | | | | 57,416 | | | | | | | | 1.55 | | | | 1.06 | | | | | | | | 104 | |
| | 30.66 | | | | 68,569 | | | | | | | | 1.55 | | | | 1.22 | | | | | | | | 89 | |
| | 0.75 | | | | 59,238 | | | | | | | | 1.50 | | | | 1.02 | | | | | | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 0.55 | | | | 352,085 | | | | | | | | 0.88 | * | | | 2.07 | * | | | | | | | 67 | |
| | 5.78 | | | | 277,978 | | | | | | | | 0.87 | | | | 2.04 | | | | | | | | 131 | |
| | 7.05 | | | | 307,921 | | | | | | | | 0.87 | | | | 1.83 | | | | | | | | 139 | |
| | 3.60 | | | | 254,414 | | | | | | | | 0.87 | | | | 1.80 | | | | | | | | 104 | |
| | 31.51 | | | | 250,116 | | | | | | | | 0.89 | | | | 2.12 | | | | | | | | 89 | |
| | (10.88 | ) | | | 79,796 | | | | | | | | 0.88 | * | | | 2.15 | * | | | | | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 0.49 | | | | 2,738,537 | | | | | | | | 1.03 | * | | | 1.77 | * | | | | | | | 67 | |
| | 5.61 | | | | 2,945,935 | | | | | | | | 1.04 | | | | 1.78 | | | | | | | | 131 | |
| | 6.79 | | | | 3,497,055 | | | | | | | | 1.05 | | | | 1.61 | | | | | | | | 139 | |
| | 3.48 | | | | 3,666,093 | | | | | | | | 1.05 | | | | 1.58 | | | | | | | | 104 | |
| | 31.28 | | | | 4,085,270 | | | | | | | | 1.05 | | | | 1.75 | | | | | | | | 89 | |
| | 1.32 | | | | 3,105,950 | | | | | | | | 1.00 | | | | 1.56 | | | | | | | | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 0.32 | | | | 23 | | | | | | | | 1.28 | * | | | 1.55 | * | | | | | | | 67 | |
| | 4.67 | | | | 23 | | | | | | | | 1.28 | * | | | 1.48 | * | | | | | | | 131 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. | |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. | |
| (c) | For the period April 30, 2013 (commencement of operations) through December 31, 2013. | |
| (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) | Class T shares are not available for public offering. | |
| (f) | For the period May 31, 2017 (commencement of operations) through December 31, 2017. | |
| (g) | For the six months ended June 30, 2018. | |
| ** | Represents distributions paid “from and in excess of net investment income” for the six months ended June 30, 2018 (as described in Note 1 – General Information and Significant Accounting Policies, Dividends and Distributions to Shareholders. | |
See accompanying notes to financial statements.
75
Notes to Financial Statements
(Unaudited)
1. General Information and Significant Accounting Policies
General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. and Nuveen Investment Trust V (each a “Trust” and collectively, the “Trusts”), are open-end management investment companies registered under the Investment Company Act of 1940, as amended. Nuveen Investment Funds, Inc. is comprised of Nuveen Global Infrastructure Fund (“Global Infrastructure”), Nuveen Real Asset Income Fund (“Real Asset Income”) and Nuveen Real Estate Securities Fund (“Real Estate Securities”), among others, and Nuveen Investment Trust V is comprised of Nuveen Global Real Estate Securities Fund (“Global Real Estate Securities”), among others, (each a “Fund” and collectively, the “Funds”), as diversified funds. Nuveen Investment Funds, Inc. was incorporated in the State of Maryland on August 20, 1987 and Nuveen Investment Trust V was organized as a Massachusetts business trust on September 27, 2006.
The end of the reporting period for the Funds is June 30, 2018, and the period covered by these Notes to Financial Statements is the six months ended June 30, 2018 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Investment Objectives
Global Infrastructure’s investment objective is to seek long-term growth of capital and income. Global Real Estate Securities’ investment objective is to seek long-term capital appreciation with a secondary objective to provide current income. Real Asset Income’s investment objective is to seek a high level of current income with a secondary objective to seek capital appreciation. Real Estate Securities’ investment objective is to provide above average current income and long-term capital appreciation.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the following Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
| | | | | | | | |
| | | Global
Real Estate
Securities | | | Real Asset
Income | |
| Outstanding when-issued/delayed delivery purchase commitments | | $ | 311,276 | | | $ | 31,809,658 | |
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. 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 payment-in-kind (“PIK”)
76
interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Shareholders
Dividends from net investment income, if any, are declared and distributed to shareholders annually for Global Infrastructure and quarterly for Global Real Estate Securities and Real Estate Securities. Real Asset Income’s dividends from net investment income are declared daily and distributed to shareholders monthly, and the Fund’s shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the transfer agent.
Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders 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.
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 Funds’ portfolios. Distributions received from certain securities in which the Funds invest, most notably real estate investment trust (“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 Funds’ ordinary income until such time the Fund is notified by the issuer of the actual tax character. For the current fiscal period, 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 as of the last calendar year end.
The distributions made by Real Asset Income and Real Estate Securities during the current fiscal period are provisionally classified as being “From and in excess of net investment income,” and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital for tax purposes after the fiscal year end. For purposes of calculating “Undistributed (Overdistribution of) net investment income” as of the end of the reporting period, the distribution amounts provisionally classified as “From and in excess of net investment income” were treated as being entirely from net investment income. Consequently, the financial statements as of the end of the reporting period, reflect an over-distribution of net investment income.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares are sold without an up-front sales charge but incur a 0.25% annual 12b-1 distribution and a 0.25% annual 12b-1 service fee. Class R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class T Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee.
Multiclass Operations and Allocations
Income and expenses of Global Infrastructure, Global Real Estate Securities and Real Estate Securities that are not directly attributable to a specific class of shares are prorated among the classes of each Fund based on the relative net assets of each class. Income and expenses of Real Asset Income that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Sub-transfer agent fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net assets for Global Infrastructure, Global Real Estate Securities and Real Estate Securities and relative settled shares for Real Asset Income.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Compensation
Neither Trust pays compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to each Trust from the Adviser or its affiliates. The Funds’ Board of Directors/Trustees (the “Board”) has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual
Notes to Financial Statements (Unaudited) (continued)
compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Indemnifications
Under each Trust’s organizational documents, its officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to each Trust. In addition, in the normal course of business, each Trust enters into contracts that provide general indemnifications to other parties. Each Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred. However, each Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives, when applicable, with a specific counterparty as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.
The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs 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). |
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 Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange (“NYSE”), which may represent a transfer from a Level 1 to a Level 2 security.
Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Like most fixed-income securities, the senior and subordinated loans in which the Fund invests are not listed on an organized exchange. The secondary market of such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior and subordinated loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan. These securities are generally classified as Level 2.
78
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
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 Funds’ 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 Funds’ NAV is determined, or if under the Funds’ 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 observability of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
| | | | | | | | | | | | | | | | |
| Global Infrastructure | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments*: | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 252,404,703 | | | $ | 251,536,147 | ** | | $ | — | | | $ | 503,940,850 | |
Real Estate Investment Trust Common Stocks | | | 13,663,193 | | | | 5,391,007 | ** | | | — | | | | 19,054,200 | |
Investment Companies | | | 2,660,862 | | | | — | | | | — | | | | 2,660,862 | |
| Short-Term Investments: | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | — | | | | 5,403,335 | | | | — | | | | 5,403,335 | |
| Total | | $ | 268,728,758 | | | $ | 262,330,489 | | | $ | — | | | $ | 531,059,247 | |
| | | | |
| Global Real Estate Securities | | | | | | | | | | | | |
| Long-Term Investments* | | | | | | | | | | | | | | | | |
Real Estate Investment Trust Common Stocks | | $ | 13,430,424 | | | $ | 5,042,330 | ** | | $ | — | | | $ | 18,472,754 | |
Common Stocks | | | 973,903 | | | | 5,661,993 | ** | | | — | | | | 6,635,896 | |
| Total | | $ | 14,404,327 | | | $ | 10,704,323 | | | $ | — | | | $ | 25,108,650 | |
| | | | |
| Real Asset Income | | | | | | | | | | | | |
| Long-Term Investments*: | | | | | | | | | | | | | | | | |
Real Estate Investment Trust Common Stocks | | $ | 330,761,809 | | | $ | 135,935,856 | ** | | $ | — | | | $ | 466,697,665 | |
$25 Par (or similar) Retail Preferred | | | 351,480,853 | | | | 9,013,069 | ** | | | — | | | | 360,493,922 | |
Common Stocks | | | 133,853,444 | | | | 211,025,737 | ** | | | — | | | | 344,879,181 | |
$1,000 Par (or similar) Institutional Preferred | | | — | | | | 334,474,067 | | | | — | | | | 334,474,067 | |
Corporate Bonds | | | — | | | | 292,738,156 | | | | — | | | | 292,738,156 | |
Convertible Preferred Securities | | | 83,263,190 | | | | — | | | | — | | | | 83,263,190 | |
Variable Rate Senior Loan Interests | | | — | | | | 54,546,273 | | | | — | | | | 54,546,273 | |
Convertible Bonds | | | — | | | | 17,662,102 | | | | — | | | | 17,662,102 | |
Investment Companies | | | 17,035,378 | | | | — | | | | — | | | | 17,035,378 | |
Sovereign Debt | | | — | | | | 4,673,002 | | | | — | | | | 4,673,002 | |
| Short-Term Investments: | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | — | | | | 45,321,384 | | | | — | | | | 45,321,384 | |
| Investments in Derivatives: | | | | | | | | | | | | | | | | |
Futures Contracts*** | | | (171,939 | ) | | | — | | | | — | | | | (171,939 | ) |
| Total | | $ | 916,222,735 | | | $ | 1,105,389,646 | | | $ | — | | | $ | 2,021,612,381 | |
Notes to Financial Statements (Unaudited) (continued)
| | | | | | | | | | | | | | | | |
| | | | |
| Real Estate Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments*: | | | | | | | | | | | | | | | | |
Real Estate Investment Trust Common Stocks | | $ | 3,395,767,949 | | | $ | 15,821,227 | ** | | $ | — | | | $ | 3,411,589,176 | |
Common Stocks | | | 101,265,428 | | | | — | | | | — | | | | 101,265,428 | |
| Investments Purchased with Collateral from Securities Lending | | | 293,351 | | | | — | | | | — | | | | 293,351 | |
| Short-Term Investments: | | | | | | | | | | | | | | | | |
Money Market Funds | | | 49,494,053 | | | | — | | | | — | | | | 49,494,053 | |
| Total | | $ | 3,546,820,781 | | | $ | 15,821,227 | | | $ | — | | | $ | 3,562,642,008 | |
| * | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
| ** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2. |
| *** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
The table below presents the transfers in and out of the three valuation levels for the following Funds as of the end of the current fiscal period when compared to the valuation levels as of the end of the previous fiscal year. Changes in valuation inputs or methodologies may result in transfers into or out of an assigned level within the fair value hierarchy. Transfers in or out of levels are generally due to the availability of publicly available information and to the significance or extent the Adviser determines that the valuation inputs or methodologies may impact the valuation of those securities.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | | | | | Level 2 | | | | | | Level 3 | |
| | | Transfer In | | | (Transfers Out) | | | | | | Transfer In | | | (Transfers Out) | | | | | | Transfer In | | | (Transfers Out) | |
Global Infrastructure | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 2,274,571 | | | $ | (18,346,676 | ) | | | | | | $ | 18,346,676 | | | $ | (2,274,571 | ) | | | | | | $ | — | | | $ | — | |
Real Estate Investment Trust Common Stocks | | | — | | | | (5,391,007 | ) | | | | | | | 5,391,007 | | | | — | | | | | | | | — | | | | — | |
Real Asset Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 5,821,332 | | | $ | (38,782,653 | ) | | | | | | $ | 38,782,653 | | | $ | (5,821,332 | ) | | | | | | $ | — | | | $ | — | |
Real Estate Investment Trust Common Stocks | | | 7,319,146 | | | | (111,451,568 | ) | | | | | | | 111,451,568 | | | | (7,319,146 | ) | | | | | | | — | | | | — | |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of the independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
| | (i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
| | (ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
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 Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in
80
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 end of the reporting period, the following Funds’ investments in non-U.S. securities were as follows:
| | | | | | | | |
| Global Infrastructure | | Value | | | % of
Net Assets | |
| Country: | | | | | | | | |
Canada | | $ | 54,364,145 | | | | 10.1 | % |
France | | | 53,985,425 | | | | 10.0 | |
Australia | | | 52,869,402 | | | | 9.8 | |
Spain | | | 43,601,794 | | | | 8.1 | |
Italy | | | 34,535,705 | | | | 6.4 | |
Switzerland | | | 11,792,630 | | | | 2.2 | |
New Zealand | | | 11,705,303 | | | | 2.2 | |
Germany | | | 11,462,529 | | | | 2.1 | |
Singapore | | | 10,536,557 | | | | 2.0 | |
China | | | 10,367,789 | | | | 1.9 | |
Other | | | 39,974,625 | | | | 7.5 | |
| Total non-U.S. securities | | $ | 335,195,904 | | | | 62.3 | % |
| | |
| Global Real Estate Securities | | | | | | |
| Country: | | | | | | | | |
Japan | | $ | 2,875,304 | | | | 11.2 | % |
Hong Kong | | | 1,689,387 | | | | 6.6 | |
Germany | | | 1,429,337 | | | | 5.6 | |
United Kingdom | | | 1,138,532 | | | | 4.4 | |
Canada | | | 1,041,053 | | | | 4.0 | |
Australia | | | 947,968 | | | | 3.7 | |
France | | | 897,396 | | | | 3.5 | |
Singapore | | | 866,321 | | | | 3.4 | |
Spain | | | 523,474 | | | | 2.0 | |
Sweden | | | 513,206 | | | | 2.0 | |
Other | | | 1,119,354 | | | | 4.2 | |
| Total non-U.S. securities | | $ | 13,041,332 | | | | 50.6 | % |
| | |
| Real Asset Income | | | | | | |
| Country: | | | | | | | | |
Canada | | $ | 288,764,180 | | | | 14.3 | % |
Singapore | | | 104,971,485 | | | | 5.2 | |
Australia | | | 66,279,914 | | | | 3.3 | |
Italy | | | 60,769,628 | | | | 3.0 | |
United Kingdom | | | 48,571,143 | | | | 2.4 | |
France | | | 46,859,019 | | | | 2.3 | |
Hong Kong | | | 38,429,060 | | | | 1.9 | |
Germany | | | 25,427,441 | | | | 1.3 | |
New Zealand | | | 22,583,067 | | | | 1.1 | |
Mexico | | | 22,518,769 | | | | 1.1 | |
Other | | | 146,987,656 | | | | 7.3 | |
| Total non-U.S. securities | | $ | 872,161,362 | | | | 43.2 | % |
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. 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 a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) foreign currency, (ii) investments, (iii) investments in derivatives and (iv) other assets less 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
Notes to Financial Statements (Unaudited) (continued)
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.
Securities Lending
In order to generate additional income, Real Estate Securities may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Fund also has the ability to recall the securities on loan at any time.
The Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the Fund’s securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its investment by the Fund. The Fund bears the risk of loss with respect to the investment of collateral.
The Fund’s custodian, U.S. Bank National Association, serves as its securities lending agent. Income earned from the securities lending program is paid to the Fund. Income from securities lending is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the Fund, if any, and the collateral delivered related to those securities as of the end of the reporting period.
| | | | | | | | | | | | | | |
| Fund | | Asset Class out on Loan | | Long-Term
Investments, at Value | | | Collateral Pledged (From)
Counterparty* | | | Net
Exposure | |
| Real Estate Securities | | Real Estate Investment Trust Common Stocks | | $ | 285,784 | | | $ | (285,784 | ) | | $ | — | |
| * | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan. |
Repurchase Agreements
In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
| | | | | | | | | | | | | | |
| Fund | | Counterparty | | Short-Term Investments, at Value | | | Collateral Pledged (From)
Counterparty* | | | Net
Exposure | |
| Global Infrastructure | | Fixed Income Clearing Corporation | | $ | 5,403,335 | | | $ | (5,403,335 | ) | | $ | — | |
| Real Asset Income | | Fixed Income Clearing Corporation | | | 45,321,384 | | | | (45,321,384 | ) | | | — | |
| * | 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. |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Futures Contracts
Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Cash collateral at brokers for investments in futures contracts” on the Statement of Assets and Liabilities.
82
Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If a Fund has unrealized appreciation the clearing broker would credit the Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, Real Asset Income shorted short-term U.S. Treasury futures contracts to hedge against potential increases in interest rates.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
| | | | |
| | | Real Asset
Income | |
| Average notional amount of futures contracts outstanding* | | $ | 48,978,817 | |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of futures contracts held 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 | |
| | | | | Asset Derivatives | | | (Liability) Derivatives | |
Underlying
Risk Exposure | | Derivative Instrument | | Location | | Value | | | Location | | Value | |
Real Asset Income | | | | | | | | | | | | |
| | | | | |
Interest rate | | Futures contracts | | Receivable for variation margin on futures contracts* | | $ | (128,275 | ) | | Payable for variation margin
on futures contracts* | | $ | (43,664 | ) |
| * | Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivative location as described in the table above. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
| | | | | | | | | | | | |
| Fund | | Underlying
Risk Exposure | | Derivative
Instrument | | Net Realized
Gain (Loss) from
Futures Contracts | | | Change in Net
Unrealized Appreciation
(Depreciation) of
Futures Contracts | |
| Real Asset Income | | Interest rate | | Futures contracts | | $ | 2,674,147 | | | $ | (305,573 | ) |
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
Notes to Financial Statements (Unaudited) (continued)
4. Fund Shares
Each Fund has an effective registration statement on file with the Securities and Exchange Commission (SEC) to issue Class T Shares, which were not yet available for public offering at the time this report was issued.
Transactions in Fund shares during the current and prior fiscal period were as follows:
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | |
| Global Infrastructure | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 629,142 | | | $ | 6,692,096 | | | | 3,595,000 | | | $ | 38,217,726 | |
Class C | | | 333,956 | | | | 3,528,249 | | | | 664,302 | | | | 7,050,982 | |
Class R3 | | | 3,118 | | | | 33,599 | | | | 9,860 | | | | 108,340 | |
Class R6 | | | 475,175 | | | | 5,135,236 | | | | 1,623,109 | | | | 18,478,636 | |
Class I | | | 6,063,020 | | | | 64,709,052 | | | | 32,082,878 | | | | 338,557,067 | |
Class T(1) | | | — | | | | — | | | | 2,282 | | | | 25,197 | |
| Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 438,813 | | | | 4,859,812 | |
Class C | | | — | | | | — | | | | 125,183 | | | | 1,371,545 | |
Class R3 | | | — | | | | — | | | | 1,456 | | | | 16,357 | |
Class R6 | | | — | | | | — | | | | 50,077 | | | | 553,639 | |
Class I | | | — | | | | — | | | | 1,622,904 | | | | 17,927,915 | |
Class T(1) | | | — | | | | — | | | | — | | | | — | |
| | | | 7,504,411 | | | | 80,098,232 | | | | 40,215,864 | | | | 427,167,216 | |
| Shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (1,325,698 | ) | | | (14,090,623 | ) | | | (3,235,955 | ) | | | (34,311,779 | ) |
Class C | | | (287,397 | ) | | | (3,015,421 | ) | | | (471,470 | ) | | | (5,087,735 | ) |
Class R3 | | | (5,645 | ) | | | (60,584 | ) | | | (55,111 | ) | | | (614,421 | ) |
Class R6 | | | (1,246,467 | ) | | | (12,726,188 | ) | | | (668,553 | ) | | | (7,680,340 | ) |
Class I | | | (10,053,912 | ) | | | (105,522,205 | ) | | | (22,835,259 | ) | | | (253,838,367 | ) |
Class T(1) | | | — | | | | — | | | | (18 | ) | | | (197 | ) |
| | | | (12,919,119 | ) | | | (135,415,021 | ) | | | (27,266,366 | ) | | | (301,532,839 | ) |
| Net increase (decrease) | | | (5,414,708 | ) | | $ | (55,316,789 | ) | | | 12,949,498 | | | $ | 125,634,377 | |
| | | | | | | | |
| | | For the Period 3/20/18
(commencement of operations)
through 6/30/18 | |
| Global Real Estate Securities | | Shares | | | Amount | |
| Shares sold | | | | | | | | |
Class A | | | 1,250 | | | $ | 25,000 | |
Class C | | | 1,250 | | | | 25,000 | |
Class R6 | | | 1,246,250 | | | | 24,925,000 | |
Class I | | | 1,347 | | | | 27,000 | |
| Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | |
Class A | | | — | | | | — | |
Class C | | | — | | | | — | |
Class R6 | | | — | | | | — | |
Class I | | | 1 | | | | 23 | |
| | | | 1,250,098 | | | | 25,002,023 | |
| Net increase (decrease) | | | 1,250,098 | | | $ | 25,002,023 | |
| (1) | Class T Shares are not available for public offering. Class T Shares commenced operations on May 31, 2017. |
84
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | |
| Real Asset Income | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 1,287,896 | | | $ | 30,243,347 | | | | 4,677,501 | | | $ | 111,327,706 | |
Class C | | | 779,764 | | | | 18,312,153 | | | | 3,451,220 | | | | 82,256,778 | |
Class R6 | | | 125,867 | | | | 2,945,272 | | | | 932,501 | | | | 22,734,475 | |
Class I | | | 12,588,465 | | | | 295,212,665 | | | | 37,739,689 | | | | 897,105,617 | |
Class T(1) | | | — | | | | — | | | | 1,048 | | | | 25,000 | |
| Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | |
Class A | | | 229,090 | | | | 5,325,166 | | | | 473,514 | | | | 11,334,244 | |
Class C | | | 202,486 | | | | 4,708,574 | | | | 412,875 | | | | 9,903,488 | |
Class R6 | | | 33,794 | | | | 788,421 | | | | 35,003 | | | | 845,591 | |
Class I | | | 1,634,075 | | | | 37,981,245 | | | | 2,898,758 | | | | 69,584,900 | |
Class T(1) | | | — | | | | — | | | | — | | | | — | |
| | | | 16,881,437 | | | | 395,516,843 | | | | 50,622,109 | | | | 1,205,117,799 | |
| Shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (1,811,292 | ) | | | (42,263,363 | ) | | | (6,122,375 | ) | | | (143,220,328 | ) |
Class C | | | (1,495,114 | ) | | | (34,851,661 | ) | | | (1,874,744 | ) | | | (44,760,396 | ) |
Class R6 | | | (69,186 | ) | | | (1,609,979 | ) | | | (74,235 | ) | | | (1,790,849 | ) |
Class I | | | (13,221,636 | ) | | | (307,914,739 | ) | | | (11,255,741 | ) | | | (268,865,417 | ) |
Class T(1) | | | — | | | | — | | | | — | | | | — | |
| | | | (16,597,228 | ) | | | (386,639,742 | ) | | | (19,327,095 | ) | | | (458,636,990 | ) |
| Net increase (decrease) | | | 284,209 | | | $ | 8,877,101 | | | | 31,295,014 | | | $ | 746,480,809 | |
| | |
| | | Six Months Ended
6/30/18 | | | Year Ended
12/31/17 | |
| Real Estate Securities | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 2,685,463 | | | $ | 51,081,282 | | | | 5,063,726 | | �� | $ | 111,156,037 | |
Class C | | | 101,701 | | | | 1,887,822 | | | | 296,401 | | | | 6,228,404 | |
Class R3 | | | 159,165 | | | | 3,046,188 | | | | 345,421 | | | | 7,659,454 | |
Class R6 | | | 5,696,913 | | | | 112,023,471 | | | | 6,715,414 | | | | 151,304,995 | |
Class I | | | 19,766,713 | | | | 378,925,785 | | | | 32,715,930 | | | | 725,533,824 | |
Class T(1) | | | — | | | | — | | | | 1,131 | | | | 25,000 | |
| Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | |
Class A | | | 249,808 | | | | 4,833,324 | | | | 2,688,307 | | | | 55,710,371 | |
Class C | | | 20,156 | | | | 378,483 | | | | 324,131 | | | | 6,492,768 | |
Class R3 | | | 16,677 | | | | 327,610 | | | | 204,617 | | | | 4,304,565 | |
Class R6 | | | 198,886 | | | | 3,958,162 | | | | 1,450,973 | | | | 30,795,964 | |
Class I | | | 1,366,200 | | | | 26,851,504 | | | | 13,410,267 | | | | 282,454,545 | |
Class T(1) | | | — | | | | — | | | | — | | | | — | |
| | | | 30,261,682 | | | | 583,313,631 | | | | 63,216,318 | | | | 1,381,665,927 | |
| Shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (4,353,842 | ) | | | (82,256,426 | ) | | | (16,283,116 | ) | | | (357,528,372 | ) |
Class C | | | (624,453 | ) | | | (11,485,572 | ) | | | (1,418,459 | ) | | | (30,111,161 | ) |
Class R3 | | | (456,392 | ) | | | (8,843,601 | ) | | | (1,177,970 | ) | | | (26,240,078 | ) |
Class R6 | | | (2,190,704 | ) | | | (42,913,173 | ) | | | (8,621,916 | ) | | | (192,533,611 | ) |
Class I | | | (30,073,516 | ) | | | (582,242,320 | ) | | | (61,224,634 | ) | | | (1,361,678,183 | ) |
Class T(1) | | | — | | | | — | | | | — | | | | — | |
| | | | (37,698,907 | ) | | | (727,741,092 | ) | | | (88,726,095 | ) | | | (1,968,091,405 | ) |
| Net increase (decrease) | | | (7,437,225 | ) | | $ | (144,427,461 | ) | | | (25,509,777 | ) | | $ | (586,425,478 | ) |
| (1) | Class T Shares are not available for public offering. Class T Shares commenced operations on May 31, 2017. |
Notes to Financial Statements (Unaudited) (continued)
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions, where applicable) during the current fiscal period were as follows:
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| Purchases | | $ | 482,595,404 | | | $
| 36,176,669
|
| | $ | 1,084,646,427 | | | $ | 2,337,151,896 | |
| Sales and maturities | | | 529,161,015 | | |
| 11,837,221
|
| | | 1,075,946,772 | | | | 2,499,361,558 | |
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing 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 NAVs of the Funds.
The tables below present the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of June 30, 2018.
For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| Tax cost of investments | | $ | 467,987,653 | | | $ | 24,494,993 | | | $ | 2,055,039,311 | | | $ | 2,934,576,133 | |
| Gross unrealized: | | | | | | | | | | | | | | | | |
Appreciation | | $ | 88,090,629 | | | $ | 956,301 | | | $ | 57,696,534 | | | $ | 710,407,901 | |
Depreciation | | | (25,019,035 | ) | | | (342,644 | ) | | | (90,951,525 | ) | | | (82,342,026 | ) |
| Net unrealized appreciation (depreciation) of investments | | $ | 63,071,594 | | | $ | 613,657 | | | $ | (33,254,991 | ) | | $ | 628,065,875 | |
| | | | | | | | | | | | Real Asset
Income | |
| Tax cost of futures contracts | | | | | | | | | | | | | | | (171,939 | ) |
| Net unrealized appreciation (depreciation) of futures contracts | | | | | | | | | | | | | | | — | |
Permanent differences, primarily due to the federal taxes paid, REIT adjustments, foreign currency transactions, tax equalization, bond premium amortization adjustments, investments in passive foreign investment companies, investments in partnerships and complex securities character adjustments, resulted in reclassifications among the Funds’ components of net assets as of December 31, 2017, the Funds’ last tax year end, as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
| Paid-in surplus | | $ | 4,060,374 | | | $ | 187,508 | | | $ | 35,346,060 | |
| Undistributed (Over-distribution of) net investment income | | | (1,735,969 | ) | | | 1,076,392 | | | | 47,406 | |
| Accumulated net realized gain (loss) | | | (2,324,405 | ) | | | (1,263,900 | ) | | | (35,393,466 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2017, the Funds’ last tax year end, were as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
| Undistributed net ordinary income1 | | $ | 7,048,343 | | | $ | 1,694,069 | | | $ | 8,923,279 | |
| Undistributed net long-term capital gains | | | 495,251 | | | | — | | | | 46,412,444 | |
| 1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
86
The tax character of distributions paid during the Funds’ last tax year ended December 31, 2017 was designated for purposes of the dividends paid deduction as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
| Distributions from net ordinary income1 | | $ | 30,170,112 | | | $ | 98,846,087 | | | $ | 192,423,771 | |
| Distributions from net long-term capital gains | | | 6,372,115 | | | | — | | | | 284,997,052 | |
| Return of capital | | | — | | | | — | | | | — | |
| 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, 2017, the Funds’ last tax year end, the following 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.
| | | | |
| | | Real Asset
Income | |
| Capital losses to be carried forward – not subject to expiration | | $ | 7,272,367 | |
During the Funds’ last tax year ended December 31, 2017, Real Asset Income utilized $20,765,202 of its capital loss carryforward.
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedules:
| | | | | | | | |
| Average Daily Net Assets | | Global
Infrastructure
and Global
Real Estate
Securities | | | Real Estate
Securities | |
| For the first $125 million | | | 0.7500 | % | | | 0.7000 | % |
| For the next $125 million | | | 0.7375 | | | | 0.6875 | |
| For the next $250 million | | | 0.7250 | | | | 0.6750 | |
| For the next $500 million | | | 0.7125 | | | | 0.6625 | |
| For the next $1 billion | | | 0.7000 | | | | 0.6500 | |
| For the next $3 billion | | | 0.6750 | | | | 0.6250 | |
| For the next $2.5 billion | | | 0.6500 | | | | 0.6000 | |
| For the next $2.5 billion | | | 0.6375 | | | | 0.5875 | |
| For net assets over $10 billion | | | 0.6250 | | | | 0.5750 | |
| | | | |
| Average Daily Net Assets | | Real Asset
Income | |
| For the first $125 million | | | 0.6000 | % |
| For the next $125 million | | | 0.5875 | |
| For the next $250 million | | | 0.5750 | |
| For the next $500 million | | | 0.5625 | |
| For the next $1 billion | | | 0.5500 | |
| For the next $3 billion | | | 0.5250 | |
| For the next $5 billion | | | 0.5000 | |
| For net assets over $10 billion | | | 0.4875 | |
Notes to Financial Statements (Unaudited) (continued)
The annual complex-level fee, payable monthly, for each Fund is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and (except for Global Real Estate Securities and Real Asset Income) making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex level fee schedule for each Fund is as follows:
| | | | |
| Complex-Level Eligible Asset Breakpoint Level* | | Effective Complex-Level Fee
Rate at Breakpoint Level | |
| $55 billion | | | 0.2000 | % |
| $56 billion | | | 0.1996 | |
| $57 billion | | | 0.1989 | |
| $60 billion | | | 0.1961 | |
| $63 billion | | | 0.1931 | |
| $66 billion | | | 0.1900 | |
| $71 billion | | | 0.1851 | |
| $76 billion | | | 0.1806 | |
| $80 billion | | | 0.1773 | |
| $91 billion | | | 0.1691 | |
| $125 billion | | | 0.1599 | |
| $200 billion | | | 0.1505 | |
| $250 billion | | | 0.1469 | |
| $300 billion | | | 0.1445 | |
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen open-end and closed-end Funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of June 30, 2018, the complex-level fee for each Fund was as follows: |
| | | | |
| Fund | | Complex-Level Fee | |
Global Infrastructure | | | 0.1697 | % |
Global Real Estate Securities | | | 0.1591 | |
Real Asset Income | | | 0.1591 | |
Real Estate Securities | | | 0.1854 | |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of the following Funds so that the total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitations that expire may be terminated or modified prior to that date only with the approval of the Board.
| | | | | | | | |
| Fund | | Temporary
Expense Cap | | | Temporary
Expense
Cap
Expiration
Date | |
Global Infrastructure | | | 1.00 | % | | | July 31, 2020 | |
Global Real Estate Securities | | | 1.09 | | | | July 31, 2021 | |
Real Asset Income | | | 0.95 | | | | July 31, 2020 | |
Other Transactions with Affiliates
During the current fiscal period, Nuveen Securities, LLC (the “Distributor”), a wholly-owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| Sales charges collected | | $ | 122,758 | | | $ | — | | | $ | 463,604 | | | $ | 44,458 | |
| Paid to financial intermediaries | | | 107,648 | | |
| —
|
| | | 413,108 | | | | 39,110 | |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
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During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| Commission advances | | $ | 29,655 | | | $ | — | | | $ | 226,144 | | | $ | 17,578 | |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on C Shares during the first year following a purchase were retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| 12b-1 fees retained | | $ | 26,745 | | | $ | 65 | | | $ | 311,959 | | | $ | 17,424 | |
The remaining 12b-1 fees charged to each Fund were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the current fiscal period, as follows:
| | | | | | | | | | | | | | | | |
| | | Global
Infrastructure | | | Global
Real Estate
Securities | | | Real Asset
Income | | | Real Estate
Securities | |
| CDSC retained | | $ | 2,393 | | | $ | — | | | $ | 27,877 | | | $ | 2,211 | |
As of the end of the reporting period, Nuveen owned shares of the following Funds:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
| Class T Shares | | | 2,264 | | | | 1,048 | | | | 1,131 | |
As of the end of the reporting period, TIAA owned shares of the following Fund:
| | | | |
| | | Global
Real Estate
Securities | |
| Class A Shares | | | 1,250 | |
| Class C Shares | | | 1,250 | |
| Class R6 Shares | | | 1,246,250 | |
| Class I Shares | | | 1,250 | |
8. Borrowing Arrangements
Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $3 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including all of the Funds covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 2018 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized this facility.
9. New Accounting Pronouncements
FASB Accounting Standards Update (“ASU”) 2017-08 (“ASU 2017-08”) Premium Amortization on Purchased Callable Debt Securities
The FASB has issued ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities.
Notes to Financial Statements (Unaudited) (continued)
ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08, if any.
10. Subsequent Events
Borrowing Arrangements
On July 11, 2018, the Funds renewed the standby credit facility through July 2019. In conjunction with this renewal, the amount of the facility decreased to $2.65 billion, while all other terms remained unchanged.
Share Classes and Sales Charges
Effective July 2018, Class C Shares will automatically convert to Class A Shares after 10 years. Conversions will occur during the month in which the 10-year anniversary of the purchase occurs. Class C Shares that have been held for longer than 10 years as of July 1, 2018 will also convert to Class A Shares in July 2018. The automatic conversion will be based on the relative net asset values of the two share classes without the imposition of a sales charge or fee. The automatic conversion of Class C Shares to Class A Shares will not apply to shares held through group retirement plan recordkeeping platforms of certain financial intermediaries who hold such shares in an omnibus account and do not track participant level share lot aging to facilitate such a conversion.
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Additional Fund Information
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| | Fund Manager Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606 Sub-Adviser Nuveen Asset Management, LLC 333 West Wacker Drive Chicago, IL 60606 | | Independent Registered
Public Accounting Firm PricewaterhouseCoopers LLP One North Wacker Drive Chicago, IL 60606 Custodians State Street Bank & Trust
Company One Lincoln Street Boston, MA 02111 U.S. Bank National Association* 1555 North RiverCenter Drive Suite 302 Milwaukee, WI 53202 | | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | | Transfer Agent and
Shareholder Services DST Asset Manager Solutions, Inc. (DST) P.O. Box 219140 Kansas City, MO 64121-9140 (800) 257-8787 | | |
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| | | | * For Nuveen Real Estate Securities Fund only. | | | | | | |
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| | Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation. |
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| |
| | Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. |
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| |
| | 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.FlNRA.org. |
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Basis Point: One one-hundredth of one percentage point, or 0.01%. For example, 25 basis points equals 0.25%.
Beta: A measure of the volatility of a portfolio relative to the overall market. A beta less than 1.0 indicates lower risk than the market; a beta greater than 1.0 indicates higher risk than the market.
Bloomberg Barclays U.S. Corporate High Yield Bond Index: An index that covers the universe of fixed-rate, non-investment-grade corporate debt of issuers in non-emerging market countries. Eurobonds and debt issues from countries designated as emerging markets are excluded. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
FTSE EPRA/NAREIT (Financial Times Stock Exchange – European Public Real Estate Association/National Association of Real Estate Investments Trust) Developed Index TR (Total Return) (old benchmark): An index designed to track the performance of listed real estate companies and REITS worldwide. By making the index constituents free-float adjusted, liquidity, size and revenue screened, the series is suitable for use as the basis for investment products, such as derivatives and Exchange Traded Funds (ETFs). The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
FTSE EPRA/NAREIT (Financial Times Stock Exchange – European Public Real Estate Association/National Association of Real Estate Investments Trust) Developed Index NR (Net Return) (new benchmark): An index designed to track the performance of listed real estate companies and REITS worldwide. By making the index constituents free-float adjusted, liquidity, size and revenue screened, the series is suitable for use as the basis for investment products, such as derivatives and Exchange Traded Funds (ETFs). The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Lipper Global Flexible Portfolio Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Flexible Portfolio Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Global Infrastructure Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Infrastructure Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Global Real Estate Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Real Estate Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Real Estate Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Real Estate Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Morgan Stanley Capital International (MSCI) All Country World Index (ACWI): A free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
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Morgan Stanley Capital International (MSCI) World Index: A free-float adjusted market capitalization-weighted index that is designed to measure equity market performance of developed markets. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
MSCI U.S. REIT Index: An unmanaged index that tracks the performance of real estate investment trusts (REITs). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Real Asset Income Blend (old benchmark): A five index blend comprised of weightings approximating the Fund’s proposed portfolio. The Fund’s proposed portfolio may differ significantly from the blended portfolio and actual returns may be substantially lower. Benchmark returns do not include the effects of any sales charges or management fees.
| | | | |
Weighting
Percentage | | Index | | Definition |
| 28% | | S&P Global Infrastructure Index TR (Total Return) | | An unmanaged index comprised of 75 of the largest publicly listed infrastructure companies that meet specific investability requirements. |
| 21% | | Financial Times Stock Exchange - European Public Real Estate Association/National Association of Real Estate Investments Trust
(FTSE EPRA/NAREIT) Developed Index TR (Total Return) | | An index designed to track the performance of listed real estate companies and REITs worldwide. |
| 18% | | Wells Fargo Hybrid & Preferred Securities REIT Index TR | | An Index designed to track the performance of preferred securities issued in the U.S. market by real estate investment trusts (REITs). The index is composed exclusively of preferred shares and depositary shares. |
| 18% | | Bloomberg Barclays U.S. Corporate High Yield Bond Index TR | | An index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. |
| 15% | | Bloomberg Barclays Global Capital Securities Index TR | | An index that tracks fixed-rate, investment grade capital securities denominated in USD, EUR and GBP. |
Real Asset Income Blend (new benchmark): A five index blend comprised of weightings approximating the Fund’s proposed portfolio. The Fund’s proposed portfolio may differ significantly from the blended portfolio and actual returns may be substantially lower. Benchmark returns do not include the effects of any sales charges or management fees.
| | | | |
Weighting
Percentage | | Index | | Definition |
| 28% | | S&P Global Infrastructure Index NR (Net Return) | | An unmanaged index comprised of 75 of the largest publicly listed infrastructure companies that meet specific investability requirements. |
| 21% | | Financial Times Stock Exchange - European Public Real Estate Association/National Association of Real Estate Investments Trust
(FTSE EPRA/NAREIT) Developed Index NR (Net Return) | | An index designed to track the performance of listed real estate companies and REITs worldwide. |
| 18% | | Wells Fargo Hybrid & Preferred Securities REIT Index TR | | An Index designed to track the performance of preferred securities issued in the U.S. market by real estate investment trusts (REITs). The index is composed exclusively of preferred shares and depositary shares. |
| 18% | | Bloomberg Barclays U.S. Corporate High Yield Bond Index TR | | An index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. |
| 15% | | Bloomberg Barclays Global Capital Securities Index TR | | An index that tracks fixed-rate, investment grade capital securities denominated in USD, EUR and GBP. |
S&P Global Infrastructure Index TR (Total Return) (old benchmark): An index that provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: utilities, transportation, and energy. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
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Glossary of Terms Used in this Report (continued)
S&P Global Infrastructure Index NR (Net Return) (new benchmark): An index that provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: utilities, transportation, and energy. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Annual Investment Management Agreement Approval Process
(Unaudited)
The Board of Trustees or Directors (as applicable) of each Fund (the “Board,” and each Trustee or Director, a “Board Member”), including the Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), is responsible for determining whether to initially approve or, after an initial term, to renew, that Fund’s advisory agreements. A discussion of the Board’s approval of the renewal of the advisory arrangements for the Nuveen Global Infrastructure Fund (the “Global Infrastructure Fund”), the Nuveen Real Asset Income Fund (the “Real Asset Income Fund”) and the Nuveen Real Estate Securities Fund (the “Real Estate Securities Fund”) is set forth in Part I below. The advisory arrangements for the Nuveen Global Real Estate Securities Fund (the “Global Real Estate Securities Fund”) have not yet been up for renewal. A discussion of the Board’s initial approval of the advisory arrangements for the Global Real Estate Securities Fund is set forth in Part II below.
I.
Nuveen Global Infrastructure Fund
Nuveen Real Asset Income Fund
Nuveen Real Estate Securities Fund
At a meeting held on May 22-24, 2018 (the “May Meeting”), the Board approved, for the Global Infrastructure Fund, the Real Asset Income Fund and the Real Estate Securities Fund (for purposes of this Part I, each, a “Fund”), the renewal of the management agreement (for purposes of this Part I, the “Investment Management Agreement”) with Nuveen Fund Advisors, LLC (the “Adviser”) pursuant to which the Adviser serves as investment adviser to such Fund and the sub-advisory agreement (for purposes of this Part I, the “Sub-Advisory Agreement”) with Nuveen Asset Management, LLC (the “Sub-Adviser”) pursuant to which the Sub-Adviser serves as investment sub-adviser to such Fund. Following an initial two-year period, the Board, including the Independent Board Members, is required under the 1940 Act to review and approve each Investment Management Agreement and Sub-Advisory Agreement on behalf of the applicable Fund on an annual basis. For purposes of this Part I, the Investment Management Agreements and Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements” and the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser.”
In response to a request on behalf of the Independent Board Members by independent legal counsel, the Board received and reviewed prior to the May Meeting extensive materials specifically prepared for the annual review of Advisory Agreements by the Adviser as well as by Broadridge Financial Solutions, Inc. (“Broadridge” or “Lipper”), an independent provider of investment company data. The materials provided in connection with the annual review covered a breadth of subject matter including, but not limited to, a description of the nature, extent and quality of services provided by each Fund Adviser; a review of the Sub-Adviser and the applicable investment team(s); an analysis of fund performance in absolute terms and as compared to the performance of certain peer funds and benchmarks with a focus on any performance outliers; an analysis of the fees and expense ratios of the Nuveen funds in absolute terms and as compared to those of certain peer funds with a focus on any expense outliers; a description of portfolio manager compensation; a review of the performance of various service providers; a description of various initiatives Nuveen had undertaken or continued during the year for the benefit of particular Nuveen fund(s) and/or the complex; a description of the profitability or financial data of Nuveen and the various sub-advisers to the Nuveen funds; and a description of indirect benefits received by the Fund Advisers as a result of their relationships with the Nuveen funds. The Independent Board Members also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Board Members held an in-person meeting on April 10-11, 2018 (the “April Meeting”), in part, to review and discuss the performance of the Nuveen funds and the Adviser’s evaluation of the various sub-advisers to the Nuveen funds. Prior to the May Meeting, the Board Members also received and reviewed supplemental information provided in response to questions posed by the Board Members.
The information prepared specifically for the annual review of the Advisory Agreements supplemented the information provided to the Board and its committees throughout the year. The Board and its committees met regularly during the year and the information provided and topics discussed were relevant to the review of the Advisory Agreements. Some of these reports and other data included, among other things, materials that outlined the investment performance of the Nuveen funds; strategic plans of the Adviser which may impact the services it provides to the Nuveen funds; the review of the Nuveen funds and applicable investment teams; compliance, regulatory and risk management matters; the trading practices of the various sub-advisers; valuation of securities; fund expenses; payments to financial intermediaries, including 12b-1 fees and sub-transfer agency fees; and overall market and regulatory developments. The Board further continued its practice of seeking to meet periodically with the various sub-advisers to the Nuveen funds and their investment teams, when feasible. As a result, the Independent Board Members considered the review of the Advisory Agreements to be an ongoing process and employed the accumulated information, knowledge, and experience the Board Members had gained
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
during their tenure on the boards governing the Nuveen funds and working with the Fund Advisers in their review of the Advisory Agreements. Throughout the year and during the annual review of Advisory Agreements, the Independent Board Members met in executive sessions with independent legal counsel and had the benefit of counsel’s advice.
In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor as determinative, but rather the decision reflected the comprehensive consideration of all the information provided, and each Board Member may have attributed different levels of importance to the various factors and information considered in connection with the approval process. The following summarizes the principal factors, but not all the factors, the Board considered in deciding to renew the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund and the resulting performance of each Fund. With respect to the Adviser, the Board recognized the comprehensive set of management, oversight and administrative services the Adviser and its affiliates provided to manage and operate the Nuveen funds in a highly regulated industry. As illustrative, these services included, but were not limited to, product management; investment oversight, risk management and securities valuation services; fund accounting and administration services; board support and administration services; compliance and regulatory oversight services; and legal support.
In addition to the services necessary to operate and maintain the Nuveen funds, the Board recognized the Adviser’s continued program of improvements and innovations to make the Nuveen fund complex more relevant and attractive to existing and new investors and to accommodate the new and changing regulatory requirements in an increasingly complex regulatory environment. The Board noted that some of the initiatives the Adviser had taken over recent years to benefit the complex and particular Nuveen funds included, among other things:
| | • | | Fund Rationalizations – continuing efforts to rationalize the product line through mergers, liquidations and repositionings in seeking to enhance shareholder value over the years through increased efficiency, reduced costs, improved performance and revised investment approaches more relevant to current shareholder needs; |
| | • | | Product Innovations – developing product innovations and launching new products that will help the Nuveen fund complex offer a variety of products that will attract new investors and retain existing investors, such as launching the target term funds, exchange-traded funds (“ETFs”) and multi-asset class funds; |
| | • | | Risk Management Enhancements – continuing efforts to enhance risk management, including enhancing reporting to increase the efficiency of risk monitoring, implementing programs to strengthen the ability to detect and mitigate operational risks, dedicating resources and staffing necessary to create standards to help ensure compliance with new liquidity requirements, and implementing a price verification system; |
| | • | | Additional Compliance Services – the continuing investment of significant resources, time and additional staffing to meet the various new regulatory requirements affecting the Nuveen funds over the past several years, the further implementation of unified compliance policies and processes, the development of additional compliance training modules, and the reorganization of the compliance team adding further depth to its senior leadership; and |
| | • | | Expanded Dividend Management Services – as the Nuveen fund complex has grown, the additional services necessary to manage the distributions of the varied funds offered and investing in automated systems to assist in this process. |
In addition to the services provided by the Adviser, the Board also noted the business related risks the Adviser incurred in managing the Nuveen funds, including entrepreneurial, legal and litigation risks.
The Board further considered the division of responsibilities between the Adviser and the Sub-Adviser and the investment and compliance oversight over the Sub-Adviser provided by the Adviser. The Board recognized that the Sub-Adviser generally provided the portfolio advisory services for the Funds. The Board reviewed the Adviser’s analysis of the Sub-Adviser which evaluated, among other things, the investment team, the members’ experience and any changes to the team during the year, the team’s assets under management, the stability and history of the organization, the team’s investment approach and the performance of the Funds over various periods. The Board noted that the Adviser recommended the renewal of the Sub-Advisory Agreements.
Based on its review, the Board determined, in the exercise of its reasonable business judgment, that it was satisfied with the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement.
B. The Investment Performance of the Funds and Fund Advisers
As part of its evaluation of the services provided by the Fund Advisers, the Board considered the investment performance of each Fund. In this regard, the Board reviewed fund performance over the quarter, one-, three- and five-year periods ending December 31, 2017 as well as performance data for the first quarter of 2018 ending March 31, 2018. For open-end Nuveen funds with multiple classes, the performance data was based on Class A shares and the performance of other classes should be substantially similar as they invest in the same portfolio of securities and differences in performance
96
among the classes would be principally attributed to the variations in the expense structures of the classes. The Independent Board Members noted that they reviewed and discussed fund performance over various time periods with management at their quarterly meetings throughout the year and their review and analysis of performance during the annual review of Advisory Agreements incorporated such discussions.
The Board reviewed performance on an absolute basis and in comparison to the performance of peer funds (the “Performance Peer Group”) and recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks). The Board considered the Adviser’s analysis of each Nuveen fund’s performance, including, in particular, an analysis of the Nuveen funds determined to be performance outliers and the factors contributing to their underperformance.
In reviewing performance data, the Independent Board Members appreciated some of the inherent limitations of such data. In this regard, the Independent Board Members recognized that there may be limitations with the comparative data of certain peer groups or benchmarks as they may pursue objective(s), strategies or have other characteristics that are different from the respective Nuveen fund and therefore the performance results necessarily are different and limit the value of the comparisons. As an example, some funds may utilize leverage which may add to or detract from performance compared to an unlevered benchmark. The Independent Board Members also noted that management had ranked the relevancy of the peer group as low, medium or high to help the Board evaluate the value of the comparative peer performance data. The Board was aware that the performance data was measured as of a specific date and a different time period may reflect significantly different results and a period of underperformance can significantly impact long-term performance figures. The Board further recognized that a shareholder’s experience in a Fund depends on his or her own holding period which may differ from that reviewed by the Independent Board Members.
In their review of performance, the Independent Board Members focused, in particular, on the Adviser’s analysis of Nuveen funds determined to be underperforming performance outliers. The Independent Board Members noted that only a limited number of the Nuveen funds appeared to be underperforming performance outliers at the end of 2017 and considered the factors contributing to the respective fund’s performance and whether there were any performance concerns that needed to be addressed. The Board recognized that some periods of underperformance may only be temporary while other periods of underperformance may indicate a broader issue that may require a corrective action. Accordingly, with respect to any Nuveen funds for which the Board had identified performance issues, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers whether any steps are necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
For the Global Infrastructure Fund, the Board noted that although the Fund’s performance was below its benchmark in the one-year period, the Fund outperformed its benchmark in the three- and five-year periods and ranked in the first quartile of its Performance Peer Group in the one-, three- and five-year periods. The Board was satisfied with the Fund’s overall performance.
For the Real Asset Income Fund, the Board noted that although the Fund’s performance was below its benchmark in the one- and three-year periods, the Fund outperformed its benchmark in the five-year period and ranked in the third quartile of its Performance Peer Group in the one-year period and second quartile in the three- and five-year periods. The Board was satisfied with the Fund’s overall performance.
For the Real Estate Securities Fund, the Board noted that although the Fund’s performance was below its benchmark in the three- and five-year periods, the Fund outperformed its benchmark in the one-year period and ranked in the second quartile of its Performance Peer Group in the one- and three-year periods and first quartile in the five-year period. The Board was satisfied with the Fund’s overall performance.
C. Fees, Expenses and Profitability
1. Fees and Expenses
In its annual review, the Board considered the fees paid to the Fund Advisers and the total operating expense ratio of each Fund, before and after any undertaking by Nuveen to limit the Fund’s total annual operating expenses to certain levels. More specifically, the Independent Board Members reviewed, among other things, each Fund’s gross and net management fee rates (i.e., before and after expense reimbursements and/or fee waivers, if any) and net total expense ratio in relation to those of a comparable universe of funds (the “Peer Universe”) and to a more focused subset of comparable funds (the “Peer Group”) established by Broadridge. The Independent Board Members reviewed the methodology Broadridge employed to establish its Peer Universe and Peer Group and recognized that differences between the applicable fund and its respective Peer Universe and/or Peer Group may limit some of the value of the comparative data. The Independent Board Members also considered a fund’s operating expense ratio as it more directly reflected the shareholder’s costs in investing in the respective fund. In their review, the Independent Board Members considered, in particular, each fund with a net expense ratio of six basis points or higher compared to that of its peer average (each an “Expense Outlier Fund”). The Board noted that the number of Nuveen funds classified as an Expense Outlier Fund pursuant to the foregoing criteria had decreased over the past few years with only a limited number of the Nuveen funds (including the Real Asset Income Fund) identified as Expense Outlier Funds in 2017. The Independent Board Members reviewed an analysis as to the factors contributing to each such fund’s higher relative net expense ratio. Accordingly, in reviewing the comparative data between a fund and its peers, the Board generally considered the fund’s net expense ratio and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
In their review of the fee arrangements for the Nuveen funds, the Independent Board Members considered the management fee schedules, including the complex-wide and fund-level breakpoint schedules, and the expense reimbursements and/or fee waivers provided by Nuveen for each fund, as applicable. The Independent Board Members noted that the management fees and/or expense caps of various open-end funds had been reduced in 2016 and the fund-level breakpoint schedules also had been revised in 2017 for certain open-end funds resulting in the addition of more breakpoints in the management fee schedules of such funds. The Board considered that across the Nuveen fund complex, the complex-wide fee breakpoints reduced fees by $47.4 million and fund-level breakpoints reduced fees by $54.6 million in 2017. Further, fee caps and waivers for all applicable Nuveen funds saved an additional $16.7 million in fees for shareholders in 2017.
The Board considered the sub-advisory fees paid to the Sub-Adviser, including any breakpoint schedule, and as described below, comparative data of the fees the Sub-Adviser charges to other clients.
The Independent Board Members noted that (a) the Global Infrastructure Fund had a net management fee and a net expense ratio below its peer averages; (b) the Real Estate Securities Fund had a net management fee slightly higher than its peer average, but a net expense ratio in line with its peer average; and (c) the Real Asset Income Fund had a net management fee higher than its peer average, but a net expense ratio slightly higher than its peer average. With respect to the Real Asset Income Fund, the Independent Board Members noted that such Fund’s net expense ratio was slightly higher than the peer average due to, among other things, the smaller size of such Fund compared to peers in the Peer Group.
Based on their review of the information provided, the Board determined that each Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
In determining the appropriateness of fees, the Board also reviewed information regarding the fee rates the respective Fund Advisers charged for certain other types of clients and the type of services provided to these other clients. With respect to the Adviser and/or the Sub-Adviser, such other clients may include retail and institutional managed accounts, investment companies outside the Nuveen family, foreign investment companies offered by Nuveen, and collective investment trusts. The Board further noted that the Adviser also advised certain ETFs sponsored by Nuveen.
The Board recognized that each Fund had an affiliated sub-adviser and reviewed, among other things, the range of fees assessed for managed accounts and foreign investment companies. The Board also reviewed the fee range and average fee rate of certain selected investment strategies offered in retail and institutional managed accounts by the Sub-Adviser and of the non-Nuveen investment companies sub-advised by affiliated sub-advisers. In addition to the comparative fee data, the Board also reviewed, among other things, a description of the different levels of services provided to other clients compared to the services provided to the Nuveen funds as well as the differences in portfolio investment policies, investor profiles, account sizes and regulatory requirements, all of which contribute to the variations in the fee schedules. With respect to ETFs, the Board considered the differences in the passive management of Nuveen’s Nushares ETFs compared to the active management of other Nuveen funds which also contributed to differing management fee levels compared to the other Nuveen funds. In general, the Board noted that the higher fee levels reflect higher levels of services provided by Nuveen, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of these factors. The Board further considered that the Sub-Adviser’s fee is essentially for portfolio management services and therefore more comparable to the fees it receives for retail wrap accounts and other external sub-advisory mandates. The Board concluded the varying levels of fees were justified given, among other things, the inherent differences in the products and the level of services provided to the Nuveen funds versus other clients, the differing regulatory requirements and legal liabilities and the entrepreneurial risks incurred in sponsoring and advising a registered investment company.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members considered Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2017 and 2016. In considering profitability, the Independent Board Members reviewed the level of profitability realized by Nuveen including and excluding any distribution expenses incurred by Nuveen from its own resources. The Independent Board Members also reviewed a description of the expense allocation methodology employed to develop the financial information and a summary of the history of changes to the methodology over the years. For comparability purposes, the Board recognized that a prior year’s profitability would be restated to reflect any refinements to the methodology. The Independent Board Members were aware of the inherent limitations in calculating profitability as the use of different reasonable allocation methodologies may lead to significantly different results and in reviewing profitability margins over extended periods given the refinements to the methodology over time. The Board noted that two Independent Board Members, along with independent counsel, serve as the Board’s liaisons to review and discuss any proposed changes to the methodology prior to the full Board’s review.
In their review, the Independent Board Members evaluated, among other things, Nuveen’s adjusted operating margins, gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax and before distribution) of Nuveen for fund advisory services for each of the last two calendar years. The Independent Board Members also reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2017 versus 2016. The Board noted that Nuveen recently launched its ETF product line in 2016 and reviewed the revenues, expenses and operating margin from this product line.
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In addition to reviewing Nuveen’s profitability in absolute terms, the Independent Board Members also examined comparative profitability data reviewing, among other things, the revenues, expenses and adjusted total company margins of other advisory firms that had publicly available information and comparable assets under management (based on asset size and asset composition) for 2017 and as compared to their adjusted operating margins for 2016. The Independent Board Members, however, recognized the difficulty in comparing the profitability of various fund managers given the limited public information available and the subjective nature of calculating profitability which may be affected by numerous factors including the fund manager’s organizational structure, types of funds, other lines of business, methodology used to allocate expenses and cost of capital. Nevertheless, considering such limitations and based on the information provided, the Board noted that Nuveen’s adjusted operating margins appeared reasonable when compared to the adjusted margins of the peers.
Aside from Nuveen’s profitability, the Board recognized that the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). As such, the Board also reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves for the 2017 and 2016 calendar years to consider the financial strength of TIAA.
In reviewing profitability, the Independent Board Members also considered the profitability of the various sub-advisers from their relationships with the respective Nuveen fund(s). The Independent Board Members reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2017. The Independent Board Members also reviewed a profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser for the calendar year ending December 31, 2017 and the pre- and post-tax revenue margin from 2017 and 2016.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered any other ancillary benefits derived by the respective Fund Adviser from its relationship with the Nuveen funds as discussed in further detail below.
Based on a consideration of all the information provided, the Board noted that Nuveen’s and the Sub-Adviser’s level of profitability was acceptable and not unreasonable in light of the services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Independent Board Members considered the extent to which economies of scale may be achieved as a Fund grows and whether these economies of scale have been shared with shareholders. Although the Board recognized that economies of scale are difficult to measure, the Independent Board Members noted that there are several methods that may be used in seeking to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waivers and/or expense limitation agreements and the Adviser’s investment in its business which can enhance the services provided to the Nuveen funds. With respect to breakpoint schedules, because the Board had previously recognized that economies of scale may occur not only when the assets of a particular fund grow but also when the assets in the complex grow, the Nuveen funds generally pay the Adviser a management fee comprised of a fund-level component and a complex-level component each with its own breakpoint schedule, subject to certain exceptions. In general terms, the breakpoint schedule at the fund level reduces fees as assets in the particular fund pass certain thresholds and the breakpoint schedule at the complex level reduces fees on certain funds as the eligible assets in the complex pass certain thresholds. Subject to exceptions for certain Nuveen funds, the Independent Board Members reviewed the fund-level and complex-level fee schedules and any resulting savings in fees. The Board also recognized that the fund-level breakpoint schedule for certain Nuveen funds had been revised in 2016.
Aside from the breakpoint schedules, the Independent Board Members also reviewed the temporary and/or permanent expense caps applicable to certain Nuveen funds (including the temporary expense caps applicable to the Global Infrastructure Fund and the Real Asset Income Fund), which may also serve as a means to share economies of scale. Based on the information provided, the Independent Board Members noted that the combination of fund-level breakpoints, complex-level breakpoints and fund-specific fee waivers reflected a total of $118.6 million in fee reductions in 2017. In addition, the Independent Board Members recognized the Adviser’s continued reinvestment in its business through, among other things, improvements in technology, additional staffing, product innovations and other organizational changes designed to expand or enhance the services provided to the benefit of all of the Nuveen funds.
Based on its review, the Board concluded that the current fee arrangements together with the Adviser’s reinvestment in its business appropriately shared any economies of scale with shareholders.
E. Indirect Benefits
The Independent Board Members received and considered information regarding other benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds. The Independent Board Members reviewed the revenues that an affiliate of the Adviser received in 2017 as a result of serving as principal underwriter to the open-end funds from 12b-1 distribution and shareholder servicing fees (except for Nuveen’s Nushares ETFs which currently do not incur 12b-1 fees).
In addition to the above, the Independent Board Members considered whether the Sub-Adviser uses commissions paid by the Funds on portfolio transactions to obtain research products and other services (“soft dollar transactions”). The Board recognized that the Sub-Adviser may benefit from research received from broker-dealers that execute Fund portfolio transactions. The Board, however, noted that the benefits for sub-advisers
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
transacting in fixed-income securities may be more limited as such securities generally trade on a principal basis and therefore do not generate brokerage commissions. Further, the Board noted that although the Sub-Adviser may benefit from the receipt of research and other services that it may otherwise have to pay for out of its own resources, the research may also benefit the Funds to the extent it enhances the ability of the Sub-Adviser to manage the Funds or is acquired through the commissions paid on portfolio transactions of other funds or clients.
Based on their review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
II.
Nuveen Global Real Estate Securities Fund
The Board Members are responsible for approving advisory arrangements and, at a meeting held on February 27-March 1, 2018 (for purposes of this Part II, the “Meeting”), were asked to approve the advisory arrangements for the Global Real Estate Securities Fund (for purposes of this Part II, the “Fund”). At the Meeting, the Board Members, including the Independent Board Members, considered and approved the investment management agreement (for purposes of this Part II, the “Investment Management Agreement”) between the Fund and Nuveen Fund Advisors, LLC (the “Adviser”), and the investment sub-advisory agreement (for purposes of this Part II, the “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”). For purposes of this Part II, the Adviser and the Sub-Adviser are each hereafter a “Fund Adviser.” For purposes of this Part II, the Investment Management Agreement and the Sub-Advisory Agreement are each hereafter an “Advisory Agreement” and collectively, the “Advisory Agreements.”
To assist the Board in its evaluation of an Advisory Agreement with a Fund Adviser at the Meeting, the Independent Board Members had received, in adequate time in advance of the Meeting or at prior meetings, materials which outlined, among other things:
| | • | | the nature, extent and quality of the services expected to be provided by the Fund Adviser; |
| | • | | the organization of the Fund Adviser, including the responsibilities of various departments and key personnel; |
| | • | | the expertise and background of the Fund Adviser with respect to the Fund’s investment strategy; |
| | • | | certain performance-related information (as described below); |
| | • | | the profitability of Nuveen and its affiliates for their advisory activities; |
| | • | | the proposed management fees of the Fund Adviser, including comparisons of such fees with the management fees of comparable funds; |
| | • | | the expected expenses of the Fund, including comparisons of the Fund’s expected expense ratio with the expense ratios of comparable funds; and |
| | • | | the soft dollar practices of the Fund Adviser, if any. |
At the Meeting and/or prior meetings, the Adviser made presentations to and responded to questions from the Board. During the Meeting and/or prior meetings, the Independent Board Members also met privately with their legal counsel to, among other things, review the Board’s duties under the Investment Company Act of 1940 (the “1940 Act”), the general principles of state law in reviewing and approving advisory contracts, the standards used by courts in determining whether investment company boards of directors have fulfilled their duties, factors to be considered in voting on advisory contracts and an adviser’s fiduciary duty with respect to advisory agreements and compensation. It is with this background that the Independent Board Members considered the Advisory Agreements. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to the Fund, including, among other things: (a) the nature, extent and quality of the services expected to be provided by the Fund Advisers; (b) investment performance, as described below; (c) the advisory fees and costs of the services expected to be provided to the Fund and the profitability of the Fund Advisers; (d) the extent of any anticipated economies of scale; (e) any benefits expected to be derived by the Fund Advisers from their relationships with the Fund; and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to the Fund’s Advisory Agreements.
A. Nature, Extent and Quality of Services
The Independent Board Members considered the nature, extent and quality of the respective Fund Adviser’s services, including portfolio management services and administrative services. Given that the Adviser and the Sub-Adviser already serve as adviser and sub-adviser, respectively, to other Nuveen funds overseen by the Board Members, the Board has a good understanding of each such Fund Adviser’s organization, operations, personnel and
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services. As the Independent Board Members meet regularly throughout the year to oversee the Nuveen funds, including funds currently advised by the Fund Advisers, the Independent Board Members have relied upon their knowledge from their meetings and any other interactions throughout the year with the respective Fund Adviser in evaluating the Advisory Agreements.
At the Meeting and/or at prior meetings, the Independent Board Members reviewed materials outlining, among other things, the respective Fund Adviser’s organization and business; the types of services that such Fund Adviser or its affiliates provide to the Nuveen funds (as applicable) and are expected to provide to the Fund; and the experience of the respective Fund Adviser with applicable investment strategies. Further, at the Meeting and/or at prior meetings, the Independent Board Members have evaluated the background and experience of the relevant investment personnel.
With respect to services, the Board noted that the Fund would be a registered investment company that would operate in a regulated industry. In considering the services that were expected to be provided by the Fund Advisers, the Board recognized the myriad of services that the Adviser and its affiliates provide to manage and operate the Nuveen funds, including: (a) product management (such as managing distributions, positioning the product in the marketplace, managing the relationships with the distribution platforms, maintaining and enhancing shareholder communications, and reporting to the Board); (b) investment oversight, risk management and securities valuation (such as overseeing the sub-advisers and other service providers, analyzing investment performance and risks, overseeing risk management and disclosure, executing the daily valuation of securities, and analyzing trade execution); (c) fund administration (such as helping to prepare fund tax returns and complete other tax compliance matters and helping to prepare regulatory filings and shareholder reports); (d) fund board administration (such as preparing board materials and organizing and providing assistance for board meetings); (e) compliance (such as helping to devise and maintain the Nuveen funds’ compliance program and test for adherence); (f) legal support (such as helping to prepare registration statements and proxy statements, interpreting regulations and policies, and overseeing fund activities); (g) with respect to certain closed-end funds, providing leverage, capital and distribution management services; and (h) with respect to certain open-end funds with portfolios that have a leverage component, providing such leverage management services.
The Independent Board Members noted that the Adviser would oversee the Sub-Adviser, which was generally expected to provide portfolio advisory services to the Fund. In addition, the Board Members recognized the Sub-Adviser’s relevant experience and expertise.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services expected to be provided to the Fund under each Advisory Agreement were satisfactory.
B. Investment Performance
The Fund was new and, therefore, did not have its own performance history. The Independent Board Members, however, were familiar with the performance records of other Nuveen funds advised by the Adviser and sub-advised by the Sub-Adviser. In this regard, the Independent Board Members were provided with performance-related data relating to the Nuveen Real Estate Securities Fund, including one-year, three-year, five-year and ten-year returns as of December 31, 2017, and calendar year returns for the years 2008 through 2017.
C. Fees, Expenses and Profitability
1. Fees and Expenses
In evaluating the management fees and expenses that the Fund was expected to bear, the Independent Board Members considered, among other things, the Fund’s proposed management fee structure, the rationale for its proposed fee levels, and its expected expense ratio in absolute terms as well as compared with the fees and expense ratios of comparable funds. Accordingly, the Independent Board Members reviewed, among other things, the proposed maximum gross management fee and estimated gross and net total expense ratios for the Fund, as well as comparative fee and expense data pertaining to the Fund’s peers in the Lipper category in which the Fund is expected to be classified. Further, the Independent Board Members considered the Fund’s proposed sub-advisory fee rate.
In addition, the Independent Board Members considered the Fund’s proposed fund-level and complex-wide breakpoint schedules (described in further detail below), and any applicable fee waivers and expense reimbursements expected to be provided.
Based on their review of the fee and expense information provided, the Independent Board Members determined that the Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services to be provided to the Fund.
2. Comparisons with the Fees of Other Clients
At the Meeting and/or at prior meetings, the Board considered information regarding the fees that the Fund Advisers assess to the Nuveen funds compared to those of other clients, as described in further detail below. With respect to non-municipal funds, such other clients of the Adviser and/or its affiliated sub-advisers may include: separately managed accounts (such as retail, institutional or wrap accounts), other investment companies that are not offered by Nuveen but are sub-advised by one of Nuveen’s affiliated sub-advisers, foreign investment companies offered by Nuveen, and collective investment trusts. The Board has further noted that the Adviser also advises certain exchange-traded funds (“ETFs”) sponsored by Nuveen.
In reviewing the fee rates assessed to other clients, the Board has previously reviewed, among other things, the range of fees assessed for managed accounts and the foreign investment companies offered by Nuveen. With respect to foreign funds, the Board has noted that unlike the
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
management fees for the Nuveen funds, the management fees for the foreign funds may include distribution fees paid to intermediaries. The Board has also previously reviewed the average fee rate for certain strategies offered by the Sub-Adviser. Further, the Board has recognized the inherent differences between the Nuveen funds and the other types of clients and has considered information regarding these various differences which have included, among other things, the services required, product distribution, average account sizes, types of investors targeted, legal structure and operations and applicable laws and regulations. The Independent Board Members have recognized that the foregoing variations result in different economics among the product structures and culminate in varying management fees among the types of clients and the Nuveen funds. In general, the Board has noted that higher fee levels have reflected higher levels of service provided by the Fund Adviser, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of the foregoing.
The Board has also recognized the breadth of services the Adviser provides to support the Nuveen funds and has noted that many of the administrative services that the Adviser was expected to provide to support the Fund may not be required to the same extent or at all for the institutional clients or other clients. The Board has further recognized that the passive management of ETFs compared to the active management required of other Nuveen funds would contribute to differing fee levels.
The Independent Board Members noted that the sub-advisory fee to be paid by the Adviser to the Sub-Adviser would generally be for portfolio management services.
Given the inherent differences in the various products, particularly the extensive services expected to be provided to the Fund, the Independent Board Members concluded that such facts justify the different levels of fees.
3. Profitability of Fund Advisers
In conjunction with their review of fees, at the Meeting and/or at prior meetings, the Independent Board Members have considered Nuveen’s level of profitability for its advisory services to the Nuveen funds. In considering profitability, the Independent Board Members have considered the level of profitability realized by Nuveen before the imposition of any distribution and marketing expenses incurred by the firm from its own resources. In evaluating the profitability, the Independent Board Members have evaluated the analysis employed in developing the profitability figures, including the assumptions and methodology employed in allocating expenses. The Independent Board Members have recognized the inherent limitations to any cost allocation methodology as different and reasonable approaches may be used and yet yield differing results. The Independent Board Members have further reviewed an analysis of the history of the profitability methodology used explaining any changes to the methodology over the years. The Board has appointed two Independent Board Members, who along with independent legal counsel, have helped to review and discuss the methodology employed to develop the profitability analysis each year and any proposed changes thereto and to keep the Board apprised of such changes during the year.
In their review, at the Meeting and/or at prior meetings, the Independent Board Members have evaluated, among other things, Nuveen’s adjusted operating margins, the gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax) of Nuveen. In addition to reviewing Nuveen’s profitability in absolute terms, the Independent Board Members have also reviewed the adjusted total company margins of other advisory firms that had publicly available information and comparable assets under management (based on asset size and asset composition). The Independent Board Members, however, have noted that the usefulness of the comparative data may be limited as the other firms may have a different business mix and their profitability data may be affected by numerous other factors such as the types of funds managed, the cost allocation methodology used, and their capital structure. Nevertheless, the Board has noted that Nuveen’s adjusted operating margins appeared comparable to the adjusted margins of the peers.
Further, the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). To have a fuller picture of the financial condition and strength of the TIAA complex, together with Nuveen, the Board has reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves.
In addition to the Adviser’s profitability, the Independent Board Members have also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. The Independent Board Members have previously reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities. The Independent Board Members have also reviewed a profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts expected to be paid to a Fund Adviser for its services to the Fund as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates are expected to receive that would be directly attributable to the management of the Fund. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Fund.
Based on a consideration of the information provided, the Board has noted that Nuveen’s and the Sub-Adviser’s levels of profitability were acceptable and not unreasonable in light of the services provided.
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D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized that, in general, as the assets of a particular fund or the Nuveen complex in the aggregate increase over time, economies of scale may be realized with respect to the management of the funds. In this regard, the Independent Board Members considered whether the Fund could be expected to benefit from any economies of scale. Although the Independent Board Members have recognized that economies of scale are difficult to measure with precision, they have noted that there are several ways a Fund Adviser may share the benefits of economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waivers and/or expense limitation agreements, and the Adviser’s investment in its business which can enhance the services provided to the Nuveen funds.
With respect to the fee structure, the Independent Board Members have recognized that economies of scale may be realized when a particular fund grows, but also when the total size of the fund complex grows (even if the assets of a particular fund in the complex have not changed or have decreased). Accordingly, subject to certain exceptions, the funds in the Nuveen complex pay a management fee to the Adviser which is generally comprised of a fund-level component and a complex-level component, each of which has a breakpoint schedule. Subject to certain exceptions, the fund level fee component declines as the assets of a particular fund grow and the complex-level fee component declines when eligible assets of all the Nuveen funds (except for Nuveen ETFs, which are subject to a unitary fee) in the Nuveen complex combined grow. Accordingly, the Independent Board Members reviewed and considered the proposed management fee for the Fund, taking into account the fund-level breakpoints and the complex-wide fee arrangement. Additionally, the Independent Board Members considered the Fund’s proposed temporary expense cap.
In addition, the Independent Board Members have recognized the Adviser’s ongoing investment in its business to expand or enhance the services provided to the benefit of all of the Nuveen funds.
Based on their review, the Independent Board Members concluded that the proposed fee structure was acceptable and reflected economies of scale to be shared with the Fund’s shareholders when assets under management increase.
E. Indirect Benefits
The Independent Board Members considered information received at the Meeting and/or at prior meetings regarding other benefits that a Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds, including compensation paid to affiliates of a Fund Adviser for services rendered to the funds and research services received by a Fund Adviser from broker-dealers that execute fund trades. In this regard, the Independent Board Members considered, among other things, any distribution fees and shareholder services fees expected to be received and retained by the Fund’s principal underwriter, an affiliate of the Adviser (including fees to be received pursuant to any Rule 12b-1 plan).
In addition to the above, the Independent Board Members considered that the Fund’s portfolio transactions would be allocated by the Sub-Adviser and have noted at the Meeting and/or at prior meetings that the Sub-Adviser may benefit from research received from broker-dealers that execute Fund portfolio transactions. The Board has noted, however, that with respect to transactions in fixed income securities, such securities generally trade on a principal basis and do not generate soft dollar credits. Although the Board recognized that the Sub-Adviser may benefit from a soft dollar arrangement if it does not have to pay for this research out of its own assets, the Board also recognized that any research may benefit the Fund to the extent it enhances the ability of the Sub-Adviser to manage the Fund.
Based on their review, the Independent Board Members concluded that any indirect benefits expected to be received by a Fund Adviser as a result of its relationship with the Fund were reasonable and within acceptable parameters.
F. Approval
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including a majority of the Independent Board Members, concluded that the terms of the Investment Management Agreement and the Sub-Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services to be provided to the Fund and that the Investment Management Agreement and Sub-Advisory Agreement should be and were approved on behalf of the Fund.
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Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide
dependable investment solutions through continued adherence to proven, long-term investing
principles. Today, we offer a range of high quality solutions designed to
be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
Find out how we can help you.
To learn more about how the products and services of Nuveen
may be able to help you meet your financial goals, talk to your
financial advisor, or call us at (800) 257-8787. Please read the information
provided carefully before you invest. Investors should consider the
investment objective and policies, risk considerations, charges and
expenses of any investment carefully. Where applicable, be sure to obtain a
prospectus, which contains this and other relevant information. To obtain
a prospectus, please contact your securities representative or Nuveen,
333 W. Wacker Dr., Chicago, IL 60606. Please read the
prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mutual-funds
| | |
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC |
333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com | | MSA-FREGIF-0618D 569744-INV-B-08/19 |
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this registrant.
Item 6. Schedule of Investments.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Trust V
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| By | | (Signature and Title) | | /s/ Christopher M. Rohrbacher | | |
| | | | Christopher M. Rohrbacher Vice President and Secretary | | |
Date: September 6, 2018
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.
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| By | | (Signature and Title) | | /s/ Greg A. Bottjer | | |
| | | | Greg A. Bottjer Chief Administrative Officer (principal executive officer) | | |
Date: September 6, 2018
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| By | | (Signature and Title) | | /s/ Stephen D. Foy | | |
| | | | Stephen D. Foy Vice President and Controller (principal financial officer) | | |
Date: September 6, 2018
