Washington, D.C. 20549
Kevin J. McCarthy
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
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Table of Contents
| Chairman's Letter to Shareholders | 4 |
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| Portfolio Managers' Comments | 5 |
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| Fund Leverage | 10 |
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| Common Share Information | 11 |
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| Risk Considerations | 13 |
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| Performance Overview and Holding Summaries | 14 |
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| Shareholder Meeting Report | 18 |
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| Report of Independent Registered Public Accounting Firm | 19 |
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| Portfolios of Investments | 20 |
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| Statement of Assets and Liabilities | 48 |
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| Statement of Operations | 49 |
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| Statement of Changes in Net Assets | 50 |
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| Statement of Cash Flows | 51 |
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| Financial Highlights | 52 |
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| Notes to Financial Statements | 54 |
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| Additional Fund Information | 67 |
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| Glossary of Terms Used in this Report | 68 |
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| Reinvest Automatically, Easily and Conveniently | 70 |
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| Annual Investment Management Agreement Approval Process | 71 |
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| Board Members & Officers | 78 |
Chairman's Letter to Shareholders
Dear Shareholders,
The U.S. economy is now seven years into the recovery, but its pace remains stubbornly subpar compared to past recoveries. Economic data continues to be a mixed bag, as it has been throughout this expansion period. While the unemployment rate fell below its pre-recession level and wages have grown slightly, a surprisingly weak jobs growth report in May cast doubt over the future strength of the labor market. The June employment report was much stronger, however, easing fears that a significant downtrend was emerging. The housing market has improved markedly but its contribution to the recovery has been lackluster. Deflationary pressures, including the dramatic slide in commodity prices, have kept inflation much lower for longer than many expected.
U.S. growth remains modest, while economic conditions elsewhere continue to appear vulnerable. On June 23, 2016, the U.K. voted to leave the European Union, known as "Brexit." The outcome surprised the global markets, leading to high levels of volatility across equities, fixed income and currencies in the days following the vote. Although the turbulence subsided not long after and many asset classes have largely recovered, uncertainties remain about the Brexit separation process and the economic and political impacts on the U.K., Europe and the rest of the world.
In the meantime, global central banks remain accommodative in efforts to bolster growth. The European Central Bank and Bank of Japan have been providing aggressive monetary stimulus, including adopting negative interest rates in both Europe and Japan, as their economies continue to lag the U.S.'s recovery. China's policy makers have also continued to manage its slowdown, but investors are still worried about where the world's second-largest economy might ultimately land.
Many of these ambiguities – both domestic and international – have kept the U.S. Federal Reserve (Fed) from raising short-term interest rates any further since December's first and only increase thus far. While markets rallied earlier in the year on the widely held expectation that the Fed would defer any increases until June, the unusually weak May jobs report and the Brexit concerns compelled the Fed to hold rates steady at its June meeting. Although labor market conditions improved in June, Britain's "leave" vote is expected to keep the Fed on hold until later in 2016.
With global economic growth still looking fairly fragile, financial markets have become more volatile over the past year. Although sentiment has improved and conditions have generally recovered from the intense volatility seen in early 2016 and following the Brexit vote in June, we expect that turbulence remains on the horizon for the time being. In this environment, Nuveen remains committed to both managing downside risks and seeking upside potential. If you're concerned about how resilient your investment portfolio might be, we encourage you to talk to your financial advisor.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
July 26, 2016
Portfolio Managers' Comments
Nuveen Intermediate Duration Municipal Term Fund (NID)
Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ)
These Funds feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Investments, Inc. Portfolio managers John V. Miller, CFA, Timothy T. Ryan, CFA, Steven M. Hlavin and Daniel J. Close, CFA, discuss U.S. economic and municipal market conditions, key investment strategies and the twelve-month performance of these two Nuveen Funds. John, Tim and Steve have managed NID since its inception in December 2012 and Dan has managed NIQ since its inception in February 2013.
On May 25, 2016, the Nuveen Fund Board approved the primary benchmark for NID change from the S&P Municipal Bond Intermediate Index to the S&P Intermediate Duration Municipal Yield Index. The primary benchmark was changed to better reflect the Fund's mandate in conjunction with how the Fund is being managed.
What factors affected the U.S. economy and the national municipal market during the twelve-month reporting period ended May 31, 2016?
Over the twelve-month period, U.S. economic data continued to point to subdued growth, rising employment and tame inflation. Economic activity has continued to hover around a 2% annualized growth rate since the end of the Great Recession in 2009, as measured by real gross domestic product (GDP), which is the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes. For the first quarter of 2016, real GDP increased at an annual rate of 0.8%, as reported by the "second" estimate of the Bureau of Economic Analysis, down from 1.4% in the fourth quarter of 2015.
The labor and housing markets were among the bright spots in the economy during the reporting period, as both showed steady improvement. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 4.7% in May 2016 from 5.5% in May 2015, and job gains averaged slightly above 200,000 per month for the past twelve months. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.0% annual gain in April 2016 (most recent data available at the time this report was prepared). The 10-City and 20-City Composites reported year-over-year increases of 4.7% and 5.4%, respectively.
Consumers, whose purchases comprise the largest component of the U.S. economy, benefited from lower gasoline prices and an improving jobs market but didn't necessarily spend more. Pessimism about the economy's future and lackluster wage growth likely contributed to consumers' somewhat muted spending. Lower energy prices and tepid wage growth also weighed on inflation
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.Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's, (S&P) Moody's Investors Service, Inc. (Moody's) or Fitch, Inc. (Fitch) Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers' ability to meet their commitments.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Portfolio Managers' Comments (continued)
during this reporting period. The Consumer Price Index (CPI) rose 1.0% over the twelve-month period ended May 2016 on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 2.2% during the same period, slightly above the Fed's unofficial longer term inflation objective of 2.0%.
Business investment was also rather restrained. Corporate earnings growth slowed during 2015, reflecting an array of factors ranging from weakening demand amid sluggish U.S. and global growth to the impact of falling commodity prices and a strong U.S. dollar. Energy, materials and industrials companies were hit particularly hard by the downturn in natural resource prices, as well as the expectation of rising interest rates, which would make their debts more costly to service. With demand waning, companies, especially in the health care and technology sectors, looked to consolidate with rivals as a way to boost revenues. Merger and acquisition deals, both in the U.S. and globally, reached record levels in the calendar year 2015.
With the current expansion on solid footing, the U.S. Federal Reserve (Fed) prepared to raise one of its main interest rates, which had been held near zero since December 2008 to help stimulate the economy. After delaying the rate change for most of 2015 because of a weak global economic growth outlook, the Fed announced in December 2015 that it would raise the fed funds target rate by 0.25%. The news was widely expected and therefore had a relatively muted impact on the financial markets.
Although the Fed continued to emphasize future rate increases would be gradual, investors worried about the pace. This, along with uncertainties about the global macroeconomic backdrop, another downdraft in oil prices and a spike in stock market volatility triggered significant losses across assets that carry more risk and fueled demand for "safe haven" assets such as Treasury bonds and gold from January through mid-February. However, fear began to subside in March, propelling assets that carry more risk higher. The Fed held the rate steady at both the January and March policy meetings, as well as lowered its expectations to two rate increases in 2016 from four. Also boosting investor confidence were reassuring statements from the European Central Bank, some positive economic data in the U.S. and abroad, a retreat in the U.S. dollar and an oil price rally. At its April meeting, the Fed indicated its readiness to raise its benchmark rate at the next policy meeting in June. However, a very disappointing jobs growth report in May and the significant uncertainty surrounding the U.K.'s referendum on whether Britain should leave the European Union (EU), colloquially known as "Brexit," dampened the Fed's outlook. These concerns led the Fed to again hold rates steady at its June meeting (after the close of this reporting period). Subsequent to the close of this reporting period, on June 23, 2016, the U.K. voted in favor of leaving the EU. The event triggered considerable market volatility, with a steep drop in the U.K. sterling, turbulence in global equity markets and a rotation into safe-haven assets such as gold, the U.S. dollar and U.S. Treasuries.
The broad municipal bond market performed well in the twelve-month reporting period, supported by falling interest rates, a favorable supply-demand balance and generally improving credit fundamentals. Early in the reporting period, interest rates rose on the expectation that the Fed would begin to raise short-term interest rates in the latter half of 2015. However, with the Fed's first increase delayed until December and its indication of a more gradual path of increases in 2016, interest rates trended lower over the remainder of the reporting period. Municipal market yields moved in tandem with broader interest rates, ending the reporting period below where they started. However, while the yields on intermediate- and longer-dated bonds posted sizeable declines, the yields of short-dated bonds increased slightly over the reporting period. This caused the municipal yield curve to flatten over the reporting period.
The municipal market's supply-demand balance was generally favorable over this reporting period. Over the twelve months ended May 31, 2016, municipal bond gross issuance nationwide totaled $384.5 billion, a 5.2% drop from the issuance for the twelve-month period ended May 31, 2015. Despite the drop, gross issuance remains elevated as issuers continue to actively and aggressively refund their outstanding debt given the very low interest rate environment. In these transactions the issuers are issuing new bonds and taking the bond proceeds and redeeming (calling) old bonds. These refunding transactions have ranged from 40%-60% of total issuance over the past few years. Thus, the net issuance (all bonds issued less bonds redeemed) is actually much lower than the
gross issuance. In fact, the total municipal bonds outstanding has actually declined in each of the past four calendar years. So, the gap between gross and net issuance has been an overall positive technical factor on municipal bond investment performance.
While supply has tightened, investor demand for municipal bonds has risen. Municipal bond mutual funds reported net inflows in 2015, and the inflows for the first four months of 2016 has already exceeded 2015's total volume for the year. The bouts of heightened volatility across other risky assets, uncertainty about the Fed's rate increases and the low to negative yields of European and Asian bonds have bolstered the appeal of municipal bonds' risk-adjusted returns and tax-equivalent yields. The municipal bond market is less directly influenced by the Fed's rate adjustments and its demand base is largely comprised of U.S. investors, factors which have helped municipal bonds deliver relatively attractive returns with less volatility than other market segments.
The fundamental backdrop also remained supportive for municipal bonds. Despite the U.S. economy's rather sluggish recovery, improving state and local balance sheets have contributed to generally good credit fundamentals. Higher tax revenue growth, better expense management and a more cautious approach to new debt issuance have led to credit upgrades and stable credit outlooks for many state and local issuers. While some pockets of weakness continued to grab headlines, including Illinois, New Jersey and Puerto Rico, their problems were largely contained, with minimal spillover into the broader municipal market.
What key strategies were used to manage NID and NIQ during the twelve-month reporting period ended May 31, 2016?
Municipal bonds delivered a strong gain over the twelve-month reporting period in an environment of falling interest rates, stronger credit fundamentals and a tight supply-demand balance. Our trading activity continued to focus on pursuing the Funds' investment objectives. We continued to seek bonds in areas of the market that we expected to perform well as the economy continued to improve. The Funds' positioning emphasized intermediate (relative to their intermediate benchmark), lower rated credits and sectors offering higher yields. To fund these purchases, we generally reinvested the proceeds from called and maturing bonds. In some cases, we sold bonds that we believed had deteriorating fundamentals or could be traded for a better relative value, as well as selling short-dated, higher quality issues that we tend to hold over short timeframes as a source of liquidity.
We've also continued to be more cautious in selecting individual securities. As investor demand for municipal securities has increased and created a slight supply-demand imbalance, we've started to see underwriters bring new issues to market that are structured with terms more favorable to the issuer and perhaps less advantageous to the investor than in the recent past. We believe this shift in the marketplace merits extra vigilance on our part to ensure that every credit considered for the portfolio offers adequate reward potential for the level of risk to the bondholder. In cases where our convictions have been less certain, we've sought compensation for the additional risk or have passed on the deal all together.
The Funds were well positioned coming into the reporting period and their overall positioning remained relatively stable during the twelve-month reporting period. NIQ bought two intermediate dated credits, a BBB rated tax increment district bond and an A1 rated airport bond. Notable additions to NID included two credits we bought at deep discounts. We invested in bonds issued for Allegheny County U.S. Steel, whose prices suffered due to the company's exposure to weakening commodity prices and the negative sentiment surrounding commodity supply gluts. NID also purchased a new issue for The Chicago Board of Education, which manages the Chicago Public Schools system, because the bonds offered high yields and long maturities, and were available at attractive prices due an uncertain outlook about the credits at the time of issue. As some of the concerns about commodity oversupply eased and investors gained more clarity on the Chicago public schools system later in the reporting period, both the U.S. Steel and Chicago Board of Education positions subsequently delivered positive performance. Another addition to NID's portfolio during the reporting period was a Loma Linda University Medical Center credit offering an attractive yield.
These purchases were made primarily with the proceeds from called and maturing bonds. In addition, NID trimmed its U.S. Virgin Islands exposure during this reporting period due to our concerns about mounting fiscal pressures there. Yet, secondary market demand for Virgin Islands paper has remained relatively strong, providing an attractive exit point for some of these bonds.
Portfolio Managers' Comments (continued)
Additionally, after the Fed's December interest rate hike, short-term interest rates, particularly at the shortest end of the yield curve, trended higher. This environment provided NID an opportunity to benefit from more active trading in the Fund's cash management strategy, generating additional income for the Fund.
As of May 31, 2016, both of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement. As part of our duration management strategies, NID and NIQ also used duration shortening forward interest rate swaps to help maintain the Funds' ten-year maximum duration mandate. Because interest rates generally decreased during the reporting period, the swaps had a negative impact on performance.
How did NID and NIQ perform during the twelve-month reporting period ended May 31, 2016?
The tables in each Fund's Performance Overview and Holding Summaries section of this report provide the Funds' total returns for the one-year and since-inception periods ended May 31, 2016. Each Fund's total returns at common share net asset value (NAV) are compared with the performance of a corresponding market index and Lipper classification averages.
For the twelve months ended May 31, 2016, the total returns at common share NAV for NID outperformed the return for both the S&P Municipal Bond Intermediate Index and its new primary benchmark, the S&P Intermediate Duration Municipal Yield Index and NIQ outperformed the return for the S&P Municipal Bond Intermediate Index. For the same period, NID underperformed the average return for the Lipper General & Insured Leveraged Municipal Debt Funds Classification Average and NIQ outperformed the average return for the Lipper Intermediate Municipal Debt Funds Classification Average.
The main contributors to the Funds' relative outperformance during this reporting period were duration and yield curve positioning, ratings allocations and sector positioning. In terms of duration and yield curve positioning, longer maturity bonds generally outperformed shorter maturities in this reporting period. Overweight allocations to the longer end of the intermediate maturity spectrum and longer dated bonds, and underweight exposures to shorter dated bonds were advantageous to relative performance for NIQ and, to a lesser extent, NID.
Ratings allocations also drove positive relative performance for both Funds. The returns of lower quality bonds generally outpaced those of higher quality credits due to investor demand for higher yielding assets and a willingness to increase credit risk because of improving credit fundamentals. The Funds' overweight allocations to the below investment grade and not rated categories, as well as underweight allocations to AAA and AA rated credits were generally advantageous to performance. However, NID's underweight position in A rated bonds was a slight detractor from relative performance because the Fund had less exposure than the S&P Intermediate Duration Municipal Yield Index to the A rated category's gains.
Sector positioning was the main contributor to NID's relative outperformance over the period and was beneficial to NIQ's relative results as well. NID's returns were aided by underweight allocations to state and local general obligation bonds (GOs) and to the utility sector, and overweight allocations to the dedicated and incremental tax revenue sector, the health care sector and the tobacco sector. A modest overweight to the corporate-backed sector, also known as the industrial development revenue/pollution control revenue (IDR/PCR) sector, was a slight detractor from NID's performance. Corporate-backed municipal bonds declined during a price dislocation in the corporate bond market that occurred from September 2015 to mid-February 2016 when fears of rising defaults, particularly in commodity-related sectors, weighed heavily on the taxable high yield corporate market. While tax-exempt corporate-backed debt suffered along with their taxable counterparts, the tax-exempt segment's downturn was milder. We took advantage of this discount opportunity to buy Alleghany County U.S. Steel bonds at attractive prices for NID's portfolio (as described in the key strategies section of this commentary). NIQ was most helped by its overweight allocation to the tobacco sector, which was the best-performing municipal bond sector in this reporting period. Additionally, while most of NIQ's sector positions were favorable to relative performance, the Fund's higher education exposure slightly detracted from returns.
An Update Involving Puerto Rico
As noted in the Funds' previous shareholder reports, we continue to monitor situations in the broader municipal market for any impact on the Funds' holdings and performance: the ongoing economic problems of Puerto Rico is one such case. Puerto Rico's continued economic weakening, escalating debt service obligations, and long-standing inability to deliver a balanced budget led to multiple downgrades on its debt over the past two years. Puerto Rico has warned investors since 2014 that the island's debt burden may be unsustainable and the Commonwealth has been exploring various strategies to deal with this burden, including Chapter 9 bankruptcy, which is currently not available by law. On June 30, 2016 (subsequent to the end of the reporting period), President Obama signed the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) into law. The legislation creates a path for Puerto Rico to establish an independent oversight board responsible for managing the government's financial operations and restructure debt. Implementation is expected to take time, as the law focuses on developing a comprehensive five-year fiscal plan.
In terms of Puerto Rico holdings, shareholders should note that NID had limited exposure, which was insured to Puerto Rico debt during this reporting period, generally totaling under 0.4%, while NIQ had no exposure to Puerto Rico bonds. The Puerto Rico credits offered higher yields, added diversification and triple exemption (i.e., exemption from most federal, state and local taxes). Puerto Rico general obligation debt is currently rated Caa2/CC/CC (below investment grade) by Moody's, S&P and Fitch, respectively, with negative outlooks.
A Note About Investment Valuations
The municipal securities held by the Funds are valued by the Funds' pricing service using a range of market-based inputs and assumptions. A different municipal pricing service might incorporate different assumptions and inputs into its valuation methodology, potentially resulting in different values for the same securities. These differences could be significant, both as to such individual securities, and as to the value of a given Fund's portfolio in its entirety. Thus, the current net asset value of a Fund's shares may be impacted, higher or lower, if the Fund were to change pricing service, or if its pricing service were to materially change its valuation methodology. The Funds have received notification by their current municipal bond pricing service that such service has agreed to be acquired by the parent company of another pricing service, and that the transaction is under regulatory review. Thus there is an increased risk that each Fund's pricing service may change, or that the Funds' current pricing service may change its valuation methodology, either of which could have an impact on the net asset value of each Fund's shares.
Fund Leverage
IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of the Funds relative to their comparative benchmarks was the Funds' use of leverage through their issuance of preferred shares and/or investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income, particularly in the recent market environment where short-term market rates are at or near historical lows, meaning that the short-term rates the Fund has been paying on its leveraging instruments have been much lower than the interest the Fund has been earning on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. However, use of leverage also can expose the Fund to additional price volatility. When a Fund uses leverage, the Fund will experience a greater increase in its net asset value if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its net asset value if the bonds acquired through leverage decline in value, which will make the Fund's net asset value more volatile, and its total return performance more variable over time. In addition, income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. Leverage had a positive impact on the performance of both Funds over this reporting period.
As of May 31, 2016, the Funds' percentages of leverage are as shown in the accompanying table.
| | | | NID | | NIQ |
| Effective Leverage* | | | 35.11 | % | | 35.55 | % |
| Regulatory Leverage* | | | 20.82 | % | | 22.70 | % |
| * | Effective Leverage is a Fund's effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund's portfolio that increase the Fund's investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940. |
THE FUNDS' REGULATORY LEVERAGE
As of May 31, 2016, the Funds have issued and outstanding Variable Rate MuniFund Term Preferred (VMTP) Shares as shown in the accompanying table.
| | | | VMTP Shares | |
| | | | | | Shares Issued at | |
| | | | | | | Liquidation | |
| | | | Series | | | Preference | |
| NID | | | 2018 | | $ | 175,000,000 | |
| NIQ | | | 2018 | | $ | 55,000,000 | |
Refer to Notes to Financial Statements, Note 4 — Fund Shares, Preferred Shares for further details on VMTP Shares and each Fund's respective transactions.
Common Share Information
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Funds' distributions is current as of May 31, 2016. Each Fund's distribution levels may vary over time based on each Fund's investment activity and portfolio investment value changes.
During the current reporting period, each Fund's distributions to common shareholders were as shown in the accompanying table.
| | | | Per Common | |
| | | | Share Amounts | |
| Monthly Distributions (Ex-Dividend Date) | | | NID | | | NIQ | |
| June 2015 | | $ | 0.0570 | | $ | 0.0495 | |
| July | | | 0.0570 | | | 0.0495 | |
| August | | | 0.0570 | | | 0.0495 | |
| September | | | 0.0570 | | | 0.0475 | |
| October | | | 0.0570 | | | 0.0475 | |
| November | | | 0.0570 | | | 0.0475 | |
| December | | | 0.0570 | | | 0.0475 | |
| January | | | 0.0570 | | | 0.0475 | |
| February | | | 0.0570 | | | 0.0475 | |
| March | | | 0.0570 | | | 0.0475 | |
| April | | | 0.0570 | | | 0.0475 | |
| May 2016 | | | 0.0570 | | | 0.0475 | |
| Total Distributions from Net Investment Income | | $ | 0.6840 | | $ | 0.5760 | |
| | | | | | | | |
| Yields | | | | | | | |
| Market Yield* | | | 5.00 | % | | 4.21 | % |
| Taxable-Equivalent Yield* | | | 6.94 | % | | 5.85 | % |
| * | Market Yield is based on the Fund's current annualized monthly dividend divided by the Fund's current market price as of the end of the reporting period. Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28.0%. When comparing a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield would be lower. |
Each Fund in this report seeks to pay regular monthly dividends out of their net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a 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 net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
As of May 31, 2016, the Funds had positive UNII balances for tax purposes and positive UNII balances for financial reporting purposes.
Common Share Information (continued)
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund's monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes the composition and per share amounts of each Fund's dividends for the reporting period are presented in this report's Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes distribution information for each Fund as of its most recent tax year end is presented in Note 6 — Income Tax Information within the Notes to Financial Statements of this report.
COMMON SHARE REPURCHASES
During August 2015, the Funds' Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.
As of May 31, 2016, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired common shares as shown in the accompanying table.
| | | | NID | | | NIQ | |
| Common shares cumulatively repurchased and retired | | | 0 | | | 0 | |
| Common shares authorized for repurchase | | | 4,690,000 | | | 1,310,000 | |
OTHER COMMON SHARE INFORMATION
As of May 31, 2016, and during the current reporting period, the Funds' common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.
| | | | NID | | | NIQ | |
| Common share NAV | | $ | 14.19 | | $ | 14.30 | |
| Common share price | | $ | 13.68 | | $ | 13.53 | |
| Premium/(Discount) to NAV | | | (3.59 | )% | | (5.38 | )% |
| 12-month average premium/(discount) to NAV | | | (7.51 | )% | | (7.80 | )% |
Risk Considerations
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation.
Nuveen Intermediate Duration Municipal Term Fund (NID)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Lower credit debt securities may be more likely to fail to make timely interest or principal payments. Leverage increases return volatility and magnifies the Fund's potential return and its risks; there is no guarantee a fund's leverage strategy will be successful. For these and other risks, including the Fund's limited term and inverse floater risk, see the Fund's web page at www.nuveen.com/NID.
Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund's potential return and its risks; there is no guarantee a fund's leverage strategy will be successful. For these and other risks, including the Fund's limited term and inverse floater risk, see the Fund's web page at www.nuveen.com/NIQ.
| NID | |
| | Nuveen Intermediate Duration Municipal Term Fund |
| | Performance Overview and Holding Summaries as of May 31, 2016 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of May 31, 2016
| | | Average Annual | |
| | | | Since | |
| | | 1-Year | Inception | |
| NID at Common Share NAV | | 8.66% | 4.58% | |
| NID at Common Share Price | | 15.59% | 2.53% | |
| S&P Intermediate Duration Municipal Yield Index | | 4.47% | 3.58% | |
| S&P Municipal Bond Intermediate Index | | 5.40% | 2.94% | |
| Lipper General & Insured Leveraged Municipal Debt Funds Classification Average | | 10.20% | 6.80% | |
Since inception returns are from 12/05/12. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
| Fund Allocation | |
| (% of net assets) | |
| Long-Term Municipal Bonds | 124.0% |
| Other Asset Less Liabilities | 2.3% |
| Net Asset Plus VMTP Shares, at Liquidation Preference | 126.3% |
| VMTP Shares, at Liquidation Preference | (26.3)% |
| Net Assets | 100% |
| Credit Quality | |
(% of total investment exposure)1 | |
| AAA/U.S. Guaranteed | 3.1% |
| AA | 23.3% |
| A | 16.7% |
| BBB | 14.1% |
| BB or Lower | 24.5% |
| N/R (not rated) | 18.3% |
| Total | 100% |
| Portfolio Composition | |
(% of total investments)1 | |
| Tax Obligation/Limited | 24.2% |
| Health Care | 15.2% |
| Consumer Staples | 9.9% |
| Education and Civic Organizations | 8.0% |
| Industrials | 8.0% |
| Long-Term Care | 6.4% |
| Transportation | 6.4% |
| Tax Obligation/General | 6.3% |
| Utilities | 5.5% |
| Other | 10.1% |
| Total | 100% |
| States and Territories | |
(as a % of total investments)1 | |
| Illinois | 10.1% |
| California | 9.8% |
| Florida | 9.4% |
| Texas | 7.1% |
| New Jersey | 5.5% |
| Ohio | 5.3% |
| Michigan | 5.2% |
| New York | 5.0% |
| Pennsylvania | 4.8% |
| Colorado | 3.6% |
| Indiana | 2.5% |
| Alabama | 2.4% |
| Guam | 2.1% |
| Wisconsin | 2.0% |
| Washington | 2.0% |
| Iowa | 1.9% |
| Virginia | 1.9% |
| Other | 19.4% |
| Total | 100% |
1 | Excluding investments in derivatives. |
| NIQ | |
| | Nuveen Intermediate Duration Quality Municipal Term Fund |
| | Performance Overview and Holding Summaries as of May 31, 2016 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of May 31, 2016
| | Average Annual | |
| | | Since | |
| | 1-Year | Inception | |
| NIQ at Common Share NAV | 8.85% | 4.11% | |
| NIQ at Common Share Price | 13.26% | 1.33% | |
| S&P Municipal Bond Intermediate Index | 5.40% | 3.29% | |
| Lipper Intermediate Municipal Debt Funds Classification Average | 7.42% | 5.64% | |
Since inception returns are from 2/07/13. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index and Lipper return information is provided for the Fund's shares at NAV only. Indexes and Lipper averages are not available for direct investment.
This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
| Fund Allocation | |
| (% of net assets) | |
| Long-Term Municipal Bonds | 126.5% |
| Short-Term Municipal Bonds | 1.4% |
| Other Asset Less Liabilities | 1.5% |
| Net Asset Plus VMTP Shares, at Liquidation Preference | 129.4% |
| VMTP Shares, at Liquidation Preference | (29.4)% |
| Net Assets | 100% |
| Credit Quality | |
(% of total investment exposure)1 | |
| AAA/U.S. Guaranteed | 4.3% |
| AA | 34.2% |
| A | 24.1% |
| BBB | 17.8% |
| BB or Lower | 12.3% |
| N/R (not rated) | 7.3% |
| Total | 100% |
| Portfolio Composition | |
(% of total investments)1 | |
| Tax Obligation/Limited | 18.8% |
| Utilities | 17.4% |
| Health Care | 14.3% |
| Transportation | 14.1% |
| Tax Obligation/General | 8.4% |
| Education and Civic Organizations | 8.3% |
| Consumer Staples | 5.8% |
| Other | 12.9% |
| Total | 100% |
| States and Territories | |
(as a % of total investments)1 | |
| California | 11.6% |
| Illinois | 10.1% |
| Texas | 7.7% |
| Florida | 7.0% |
| Michigan | 6.0% |
| New Jersey | 5.3% |
| Tennessee | 4.9% |
| Ohio | 3.9% |
| New York | 3.8% |
| Pennsylvania | 3.2% |
| Colorado | 3.0% |
| Alabama | 2.7% |
| Kentucky | 2.3% |
| Missouri | 2.1% |
| Iowa | 2.1% |
| Mississippi | 2.0% |
| Maine | 1.9% |
| Indiana | 1.8% |
| Other | 18.6% |
| Total | 100% |
1 | Excluding investments in derivatives. |
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on April 22, 2016 for NID and NIQ; at this meeting the shareholders were asked to elect Board Members.
| | | | NID | | | NIQ | |
| | | | Common and | | | | | | Common and | | | | |
| | | | Preferred | | | | | | Preferred | | | | |
| | | | shares | | | | | | shares | | | | |
| | | | voting together | | | Preferred | | | voting together | | | Preferred | |
| | | | as a class | | | Shares | | | as a class | | | Shares | |
| Approval of the Board Members was reached as follows: | | | | | | | | | | | | | |
| Judith M. Stockdale | | | | | | | | | | | | | |
| For | | | 42,363,702 | | | — | | | 8,767,868 | | | — | |
| Withhold | | | 785,207 | | | — | | | 2,372,814 | | | — | |
| Total | | | 43,148,909 | | | — | | | 11,140,682 | | | — | |
| Carole E. Stone | | | | | | | | | | | | | |
| For | | | 42,184,605 | | | — | | | 8,767,868 | | | — | |
| Withhold | | | 964,304 | | | — | | | 2,372,814 | | | — | |
| Total | | | 43,148,909 | | | — | | | 11,140,682 | | | — | |
| William C. Hunter | | | | | | | | | | | | | |
| For | | | — | | | 1,750 | | | — | | | 550 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 1,750 | | | — | | | 550 | |
| William J. Schneider | | | | | | | | | | | | | |
| For | | | — | | | 1,750 | | | — | | | 550 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 1,750 | | | — | | | 550 | |
| Margaret L. Wolff | | | | | | | | | | | | | |
| For | | | 42,426,270 | | | — | | | 8,771,168 | | | — | |
| Withhold | | | 722,639 | | | — | | | 2,369,514 | | | — | |
| Total | | | 43,148,909 | | | — | | | 11,140,682 | | | — | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Intermediate Duration Municipal Term Fund
Nuveen Intermediate Duration Quality Municipal Term Fund:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Intermediate Duration Municipal Term Fund and Nuveen Intermediate Duration Quality Municipal Term Fund (the "Funds") as of May 31, 2016, and the related statements of operations and cash flows for the year ended and the statements of changes in net assets and the financial highlights for each of the years in the two-year period then ended. The financial highlights for the periods presented through May 31, 2014, were audited by other auditors whose report dated July 28, 2014, expressed an unqualified opinion on those financial highlights. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of May 31, 2016, the results of their operations and their cash flows for the year then ended and the changes in their net assets and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
July 28, 2016
| NID | | |
| | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | LONG-TERM INVESTMENTS – 124.0% (100.0% of Total Investments) | | | | | | | |
| | | | MUNICIPAL BONDS – 124.0% (100.0% of Total Investments) | | | | | | | |
| | | | Alabama – 3.0% (2.4% of Total Investments) | | | | | | | |
| $ | 235 | | Jefferson County Public Building Authority, Alabama, Lease Revenue Warrants, Series 2006, 5.125%, 4/01/21 – AMBAC Insured | 8/16 at 100.00 | | B1 | | $ | 235,242 | |
| | 7,000 | | Jefferson County, Alabama, General Obligation Refunding Warrants, Series 2003A, 5.000%, 4/01/22 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 7,003,990 | |
| | 665 | | Jefferson County, Alabama, General Obligation Warrants, Series 2004A, 5.000%, 4/01/18 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 665,924 | |
| | | | Jefferson County, Alabama, Limited Obligation School Warrants, Education Tax Revenue Bonds, Series 2004A: | | | | | | | |
| | 10,000 | | 5.250%, 1/01/20 | 8/16 at 100.00 | | A– | | | 10,058,700 | |
| | 200 | | 5.500%, 1/01/22 – AGM Insured | 8/16 at 100.00 | | AA | | | 201,174 | |
| | 2,000 | | 5.250%, 1/01/23 | 8/16 at 100.00 | | A– | | | 2,011,740 | |
| | 20,100 | | Total Alabama | | | | | | 20,176,770 | |
| | | | Alaska – 0.3% (0.2% of Total Investments) | | | | | | | |
| | 2,000 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32 | 8/16 at 100.00 | | B3 | | | 1,925,380 | |
| | | | Arizona – 1.5% (1.2% of Total Investments) | | | | | | | |
| | 895 | | Arizona Health Facilities Authority, Health Care Facilities Revenue Bonds, The Beatitudes Campus Project, Series 2006, 5.100%, 10/01/22 | 10/16 at 100.00 | | N/R | | | 898,115 | |
| | 2,000 | | Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children's Hospital, Refunding Series 2012A, 5.000%, 2/01/27 | 2/22 at 100.00 | | BBB+ | | | 2,266,060 | |
| | 695 | | Estrella Mountain Ranch Community Facilities District, Goodyear City, Arizona, Special Assessment Revenue Bonds, Montecito Assessment District 2, Series 2015, 4.750%, 7/01/30 | 7/25 at 100.00 | | N/R | | | 706,919 | |
| | | | Florence Town Inc., Industrial Development Authority, Arizona, Education Revenue Bonds, Legacy Traditional School Project – Queen Creek and Casa Grande Campuses, Series 2013: | | | | | | | |
| | 90 | | 4.000%, 7/01/18 | No Opt. Call | | BB | | | 91,877 | |
| | 1,050 | | 5.000%, 7/01/23 | No Opt. Call | | BB | | | 1,148,626 | |
| | 90 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Great Hearts Academies – Veritas Project, Series 2012, 6.250%, 7/01/32 | 7/21 at 100.00 | | BB | | | 100,410 | |
| | | | Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Guam Facilities Foundation, Inc. Project, Series 2014: | | | | | | | |
| | 1,295 | | 5.000%, 2/01/18 | No Opt. Call | | B+ | | | 1,339,742 | |
| | 1,000 | | 5.125%, 2/01/34 | 2/24 at 100.00 | | B+ | | | 1,020,900 | |
| | 760 | | Pima County Industrial Development Authority, Arizona, Education Facility Revenue and Refunding Bonds, Edkey Charter Schools Project, Series 2013, 5.000%, 7/01/25 | 7/20 at 102.00 | | BB | | | 747,536 | |
| | 800 | | University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 5.000%, 7/01/19 (ETM) | No Opt. Call | | N/R (4) | | | 897,824 | |
| | 904 | | Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series 2005, 5.750%, 7/01/22 | 7/16 at 100.00 | | N/R | | | 905,455 | |
| | 9,579 | | Total Arizona | | | | | | 10,123,464 | |
| | | | California – 12.2% (9.8% of Total Investments) | | | | | | | |
| | 100 | | Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Subordinate Lien Series 2004A, 5.300%, 10/01/23 (Pre-refunded 10/01/17) – AMBAC Insured | 10/17 at 100.00 | | BBB+ (4) | | | 106,211 | |
| | 2,490 | | Alvord Unified School District, Riverside County, California, General Obligation Bonds, Tender Option Bond 3306, 25.190%, 8/01/23-NPFG Insured (IF) (5) | No Opt. Call | | AA | | | 5,939,148 | |
| | 935 | | Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A, 6.875%, 3/01/26 (Pre-refunded 3/01/21) | 3/21 at 100.00 | | Ba3 (4) | | | 1,107,984 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | California (continued) | | | | | | | |
| $ | 750 | | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender Option Bond Trust 2016-XG0019, 3.577%, 4/01/36 (IF), (5) | 10/26 at 100.00 | | AA | | $ | 715,470 | |
| | | | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A: | | | | | | | |
| | 500 | | 5.250%, 12/01/29 | 12/24 at 100.00 | | BB+ | | | 571,355 | |
| | 2,500 | | 5.250%, 12/01/34 | 12/24 at 100.00 | | BB+ | | | 2,827,125 | |
| | | | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2016A: | | | | | | | |
| | 2,300 | | 5.000%, 12/01/27 | 6/26 at 100.00 | | BB+ | | | 2,716,668 | |
| | 2,375 | | 5.000%, 12/01/28 | 6/26 at 100.00 | | BB+ | | | 2,769,345 | |
| | | | California Statewide Community Development Authority, Revenue Bonds, International School of the Peninsula, Palo Alto, California, Series 2006: | | | | | | | |
| | 415 | | 5.000%, 11/01/16 | No Opt. Call | | N/R | | | 417,739 | |
| | 2,125 | | 5.000%, 11/01/21 | 11/16 at 100.00 | | N/R | | | 2,141,150 | |
| | 5,000 | | Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Second Lien Series 2010B, 5.750%, 8/01/26 | 8/20 at 100.00 | | N/R | | | 5,463,150 | |
| | | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | | | | | | | |
| | 13,420 | | 4.500%, 6/01/27 | 6/17 at 100.00 | | B+ | | | 13,530,312 | |
| | 5,100 | | 5.000%, 6/01/33 | 6/17 at 100.00 | | B– | | | 5,133,456 | |
| | 2,355 | | Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.500%,
9/01/17 – SYNCORA GTY Insured | No Opt. Call | | N/R | | | 2,467,640 | |
| | 310 | | Indio Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Subordinate Lien Refunding Series 2008A, 5.000%, 8/15/23 | 8/18 at 100.00 | | BBB– | | | 335,913 | |
| | 800 | | Inland Empire Tobacco Securitization Authority, California, Tobacco Settlement Asset-Backed Bonds, Series 2007, 4.625%, 6/01/21 | 6/17 at 100.00 | | CC | | | 804,312 | |
| | 250 | | National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 7.000%, 8/01/32 | 8/21 at 100.00 | | A | | | 313,623 | |
| | | | Palm Desert Financing Authority, California, Tax Allocation Revenue Bonds, Project Area 2, Series 2006D: | | | | | | | |
| | 1,020 | | 0.000%, 8/01/18 | No Opt. Call | | N/R | | | 905,107 | |
| | 1,165 | | 0.000%, 8/01/19 | No Opt. Call | | N/R | | | 974,604 | |
| | 1,310 | | 0.000%, 8/01/20 | No Opt. Call | | N/R | | | 1,031,481 | |
| | 1,450 | | 0.000%, 8/01/21 | No Opt. Call | | N/R | | | 1,072,377 | |
| | | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009: | | | | | | | |
| | 2,430 | | 5.500%, 11/01/19 | No Opt. Call | | Ba1 | | | 2,644,375 | |
| | 5,000 | | 6.625%, 11/01/29 | 11/19 at 100.00 | | Ba1 | | | 5,578,250 | |
| | 700 | | Redwood City, California, Special Tax Refunding Bonds, Redwood Shores Community Facilities District 99-1, Shores Transportation Improvement Project, Series 2012B, 5.000%, 9/01/29 | No Opt. Call | | N/R | | | 788,991 | |
| | 340 | | Riverside County, California, Special Tax Bonds, Community Facilities District 05-8 Scott Road, Series 2013, 4.000%, 9/01/21 | No Opt. Call | | N/R | | | 371,824 | |
| | 500 | | Roseville, California, Special Tax Bonds, Community Facilities District 1 Westbrook, Series 2014, 5.000%, 9/01/29 | 9/24 at 100.00 | | N/R | | | 563,235 | |
| | 2,395 | | San Bernardino Joint Powers Financing Authority, California, Tax Allocation Bonds, Series 2005A, 5.750%, 10/01/24 – AGM Insured | No Opt. Call | | AA | | | 2,982,278 | |
| | 260 | | San Diego, California, Community Facilities District 3 Liberty Station Special Tax Refunding Bonds Series 2013, 5.000%, 9/01/20 | No Opt. Call | | N/R | | | 297,323 | |
| | 100 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Refunding Series 2006D, 5.000%,
8/01/18 – AMBAC Insured | 8/17 at 100.00 | | BBB+ | | | 104,771 | |
| | 420 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2003, 5.000%, 8/01/25 – FGIC Insured | 8/16 at 100.00 | | AA– | | | 425,956 | |
| | 550 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2007B, 5.000%, 8/01/19 – SYNCORA GTY Insured | No Opt. Call | | BBB+ | | | 575,388 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | California (continued) | | | | | | | |
| $ | 1,500 | | Tejon Ranch Public Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2008-1 Tejon Industrial Complex East 2012A, 5.000%, 9/01/32 | No Opt. Call | | N/R | | $ | 1,652,130 | |
| | 1,500 | | Tejon Ranch Public Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2008-1 Tejon Industrial Complex East 2012B, 5.000%, 9/01/32 | No Opt. Call | | N/R | | | 1,652,130 | |
| | 10,000 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Refunding Series 2005A-2, 5.400%, 6/01/27 | 6/17 at 100.00 | | B+ | | | 10,025,000 | |
| | 1,490 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 4.750%, 6/01/23 | 8/16 at 100.00 | | B+ | | | 1,490,522 | |
| | 120 | | Vernon, California, Electric System Revenue Bonds, Series 2009A, 5.125%, 8/01/21 (Pre-refunded 8/01/19) | 8/19 at 100.00 | | N/R (4) | | | 130,915 | |
| | 280 | | Vernon, California, Electric System Revenue Bonds, Series 2009A, 5.125%, 8/01/21 | 8/19 at 100.00 | | A– | | | 312,250 | |
| | 74,255 | | Total California | | | | | | 80,939,508 | |
| | | | Colorado – 4.5% (3.6% of Total Investments) | | | | | | | |
| | 505 | | Bromley Park Metropolitan District 2, Brighton, Colorado, General Obligation Bonds, Refunding Series 2007A, 4.375%, 12/01/18 – RAAI Insured | 12/17 at 100.00 | | AA | | | 519,534 | |
| | 2,120 | | Bromley Park Metropolitan District 3, Brighton, Colorado, General Obligation Bonds, Refunding & Improvement Series 2007, 4.750%, 12/01/37 – RAAI Insured | 12/17 at 100.00 | | AA | | | 2,164,902 | |
| | 4,005 | | Castle Oaks Metropolitan District, Castle Rock, Douglas County, Colorado, General Obligation Limited Tax Bonds, Refunding & Improvement Series 2012, 5.500%, 12/01/22 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | N/R (4) | | | 4,281,866 | |
| | 765 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Academy of Charter Schools Project, Series 2010B, 6.125%, 11/01/20 | No Opt. Call | | B | | | 813,310 | |
| | 500 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Flagstaff Academy Project, Series 2008A, 6.750%, 8/01/28 | 8/18 at 100.00 | | N/R | | | 522,360 | |
| | 165 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Littleton Preparatory Charter School, Series 2013, 5.000%, 12/01/22 | No Opt. Call | | BB+ | | | 179,578 | |
| | 975 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Total Long-Term Care National Obligated Group Project, Series 2010A, 5.250%, 11/15/20 (ETM) | No Opt. Call | | N/R (4) | | | 1,065,811 | |
| | 889 | | Colorado Housing and Finance Authority, Revenue Bonds, Confluence Energy LLC Project, Series 2013, 6.875%, 10/01/27 (Alternative Minimum Tax) (6) | No Opt. Call | | N/R | | | 808,298 | |
| | 3,270 | | Colorado Springs, Colorado, Utilities System Revenue Bonds, Tender Option Bond Trust 2015-XF0223, 12.862%, 10/01/20 (IF) | No Opt. Call | | AA | | | 4,779,694 | |
| | | | Colorado State Board of Governors, Colorado State University Auxiliary Enterprise System Revenue Bonds, Tender Option Bond Trust 3316: | | | | | | | |
| | 100 | | 20.878%, 9/01/22 (IF) (5) | No Opt. Call | | Aa2 | | | 225,865 | |
| | 300 | | 20.878%, 3/01/23 (IF) (5) | No Opt. Call | | Aa2 | | | 697,350 | |
| | 430 | | 20.831%, 3/01/24 (IF) (5) | No Opt. Call | | Aa2 | | | 1,013,200 | |
| | 725 | | 20.878%, 3/01/25 (IF) (5) | No Opt. Call | | Aa2 | | | 1,699,110 | |
| | 200 | | 20.878%, 9/01/25 (IF) (5) | No Opt. Call | | Aa2 | | | 468,350 | |
| | 3,385 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2006, 5.125%,
12/01/24 – SYNCORA GTY Insured | 11/16 at 100.00 | | BBB– | | | 3,438,483 | |
| | 860 | | Fitzsimons Village Metropolitan District 3, Arapahoe County, Colorado, Tax Increment/Public Improvement Fee Supported Revenue Bonds, Series 2014A, 5.750%, 3/01/32 | No Opt. Call | | N/R | | | 878,868 | |
| | 250 | | Lincoln Park Metropolitan District, Douglas County, Colorado, General Obligation Refunding and Improvement Bonds, Series 2008, 5.625%, 12/01/20 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | N/R (4) | | | 267,748 | |
| | 225 | | North Range Metropolitan District 1, Adams County, Colorado, Limited Tax General Obligation Bonds, Refunding Series 2007, 4.300%, 12/15/19 – ACA Insured | 12/16 at 100.00 | | N/R | | | 225,961 | |
| | | | Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, Refunding Series 2013: | | | | | | | |
| | 500 | | 5.000%, 12/01/18 | No Opt. Call | | N/R | | | 527,630 | |
| | 1,000 | | 5.000%, 12/01/21 | No Opt. Call | | N/R | | | 1,090,300 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Colorado (continued) | | | | | | | |
| $ | 590 | | Rendezous Residential Metropolitan District, Colorado, Limited Tax General Obligation Bonds, Refunding Series 2007, 5.200%, 12/01/17 | No Opt. Call | | N/R | | $ | 548,482 | |
| | 3,150 | | Westminster Economic Development Authority, Colorado, Tax Increment Revenue Bonds, Mandalay Gardens Urban Renewal Project, Series 2012, 5.000%, 12/01/27 | No Opt. Call | | A | | | 3,588,669 | |
| | 24,909 | | Total Colorado | | | | | | 29,805,369 | |
| | | | Connecticut – 0.1% (0.0% of Total Investments) | | | | | | | |
| | 6,778 | | Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Bonds, Subordinate Series 2013A, 6.050%, 7/01/31 (6) | No Opt. Call | | N/R | | | 406,682 | |
| | | | District of Columbia – 0.7% (0.6% of Total Investments) | | | | | | | |
| | | | District of Columbia Student Dormitory Revenue Bonds, Provident Group – Howard Properties LLC Issue, Series 2013: | | | | | | | |
| | 500 | | 4.000%, 10/01/19 | No Opt. Call | | BB+ | | | 510,030 | |
| | 500 | | 4.000%, 10/01/20 | No Opt. Call | | BB+ | | | 509,025 | |
| | 670 | | 4.000%, 10/01/21 | No Opt. Call | | BB+ | | | 679,749 | |
| | | | District of Columbia, Tax Increment Revenue Bonds, Gallery Place Project, Tender Option Bond Trust 1187: | | | | | | | |
| | 745 | | 19.445%, 6/01/29 (IF) (5) | 6/21 at 100.00 | | AA– | | | 1,167,489 | |
| | 785 | | 19.375%, 6/01/30 (IF) (5) | 6/21 at 100.00 | | AA– | | | 1,212,982 | |
| | 520 | | 19.445%, 6/01/31 (IF) (5) | 6/21 at 100.00 | | AA– | | | 795,392 | |
| | 3,720 | | Total District of Columbia | | | | | | 4,874,667 | |
| | | | Florida – 11.6% (9.4% of Total Investments) | | | | | | | |
| | 1,690 | | Arborwood Community Development District, Florida, Capital Improvement Revenue Bonds, Master Infrastructure Projects, Series 2005A-2, 5.350%, 5/01/36 | No Opt. Call | | N/R | | | 1,690,777 | |
| | | | Atlantic Beach, Florida, Healthcare Facilities Revenue Refunding Bonds, Fleet Landing Project, Series 2013A: | | | | | | | |
| | 425 | | 5.000%, 11/15/20 | No Opt. Call | | BBB | | | 476,485 | |
| | 150 | | 5.000%, 11/15/23 | No Opt. Call | | BBB | | | 175,655 | |
| | 760 | | Ave Maria Stewardship Community District, Florida, Capital Improvement Revenue Bonds, Series 2015, 5.000%, 5/01/30 | 5/25 at 100.00 | | N/R | | | 777,716 | |
| | 7,200 | | Cape Coral Health Facilities Authority, Florida, Senior Housing Revenue Bonds, Gulf Care Inc. Project, Series 2015, 5.750%, 7/01/30 | 7/25 at 100.00 | | N/R | | | 7,611,552 | |
| | 430 | | Capital Projects Finance Authority, Student Housing Revenue Bonds, Capital Projects Loan Program – Florida Universities, Series 2001F, 5.000%, 10/01/31 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 430,030 | |
| | 2,295 | | Capital Trust Agency, Florida, Fixed Rate Air Cargo Revenue Refunding Bonds, Aero Miami FX, LLC Project, Series 2010A, 5.350%, 7/01/29 | 7/20 at 100.00 | | Baa3 | | | 2,507,035 | |
| | 1,000 | | Collier County Educational Facilities Authority, Florida, Revenue Bonds, Ave Maria University, Refunding Series 2013A, 4.500%, 6/01/23 | No Opt. Call | | BBB– | | | 1,073,100 | |
| | 3,000 | | Collier County Industrial Development Authority, Florida, Continuing Care Community Revenue Bonds, Arlington of Naples Project, TEMPS 70 Series 2014B-2, 6.500%, 5/15/20 | 8/16 at 100.00 | | N/R | | | 3,005,460 | |
| | 2,610 | | Florida Development Finance Corporation, Educational Facilities Revenue Bonds, Renaissance Charter School, Inc. Projects, Series 2011A, 6.500%, 6/15/21 | No Opt. Call | | BB– | | | 2,888,122 | |
| | 1,045 | | Grand Bay at Doral Community Development District, Miami-Dade County, Florida, Special Assessment Bonds, Doral Breeze Project Series 2012, 5.125%, 11/01/22 | No Opt. Call | | N/R | | | 1,111,023 | |
| | | | Jacksonville Economic Development Commission, Florida, Health Care Facilities Revenue Bonds, Florida Proton Therapy Institute Project, Series 2007A: | | | | | | | |
| | 350 | | 6.000%, 9/01/17 | No Opt. Call | | N/R | | | 369,782 | |
| | 1,500 | | 6.250%, 9/01/27 | 9/17 at 100.00 | | N/R | | | 1,563,240 | |
| | | | Lake Powell Residential Golf Community Development District, Bay County, Florida, Special Assessment Revenue Refunding Bonds, Series 2012: | | | | | | | |
| | 1,170 | | 5.250%, 11/01/22 | No Opt. Call | | N/R | | | 1,244,740 | |
| | 1,305 | | 5.750%, 11/01/32 | No Opt. Call | | N/R | | | 1,392,435 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Florida (continued) | | | | | | | |
| $ | 2,270 | | Lee County Industrial Development Authority, Florida, Charter School Revenue Bonds, Lee County Community Charter Schools, Series 2007A, 5.250%, 6/15/27 | 6/17 at 100.00 | | BB | | $ | 2,305,026 | |
| | 1,000 | | Lee County Industrial Development Authority, Florida, Healthcare Facilities Revenue Bonds, Shell Point/Alliance Obligated Group, Shell Point Village/Alliance Community Project, Series 2007, 5.000%, 11/15/22 | 5/17 at 100.00 | | BBB | | | 1,036,140 | |
| | 405 | | Madison County, Florida, First Mortgage Revenue Bonds, Twin Oaks Project, Series 2005A, 6.000%, 7/01/25 (6) | 8/16 at 100.00 | | N/R | | | 242,899 | |
| | 5,615 | | Martin County Industrial Development Authority, Florida, Industrial Development Revenue Refunding Bonds, Indiantown Cogeneration LP, Series 2013, 3.950%, 12/15/21 (Alternative Minimum Tax) | 6/20 at 100.00 | | Ba1 | | | 5,920,344 | |
| | | | Miami-Dade County Expressway Authority, Florida, Toll System Revenue Bonds, Tender Option Bond Trust 1156: | | | | | | | |
| | 700 | | 19.735%, 7/01/22 (IF) (5) | No Opt. Call | | A | | | 1,398,425 | |
| | 820 | | 19.735%, 7/01/23 (IF) (5) | 7/22 at 100.00 | | A | | | 1,757,055 | |
| | 1,115 | | 19.735%, 7/01/24 (IF) (5) | 7/22 at 100.00 | | A | | | 2,328,677 | |
| | 800 | | 19.735%, 7/01/25 (IF) (5) | 7/22 at 100.00 | | A | | | 1,638,240 | |
| | 1,080 | | Miromar Lakes Community Development District, Lee County, Florida, Capital Improvement Revenue Bonds, Refunding Series 2012, 4.875%, 5/01/22 | No Opt. Call | | N/R | | | 1,169,651 | |
| | 1,990 | | Northern Palm Beach County Improvement District, Florida, Water Control and Improvement Bonds, Development Unit 16, Refunding Series 2012, 5.125%, 8/01/22 | No Opt. Call | | N/R | | | 2,119,171 | |
| | 500 | | Palm Beach County Health Facilities Authority, Florida, Hospital Revenue Bonds, BRCH Corporation Obligated Group, Refunding Series 2014, 5.000%, 12/01/25 | 12/24 at 100.00 | | BBB+ | | | 600,730 | |
| | 900 | | Palm Beach County Health Facilities Authority, Florida, Revenue Bonds, Jupiter Medical Center, Series 2013A, 5.000%, 11/01/33 | 11/22 at 100.00 | | BBB+ | | | 993,555 | |
| | 1,200 | | Palm Glades Community Development District, Florida, Special Assessment Bonds, Series 2011B, 7.250%, 8/01/16 | No Opt. Call | | N/R | | | 1,203,972 | |
| | 555 | | Pelican Marsh Community Development District, Florida, Special Assessment Revenue Bonds, Refunding Series 2013, 3.500%, 5/01/19 | No Opt. Call | | N/R | | | 573,748 | |
| | 2,150 | | Seminole Tribe of Florida, Special Obligation Bonds, Series 2007A, 144A, 5.500%, 10/01/24 | 10/17 at 100.00 | | BBB– | | | 2,243,224 | |
| | 1,735 | | South-Dade Venture Community Development District, Florida, Special Assessment Revenue Bonds, Refunding Series 2012, 5.000%, 5/01/26 | No Opt. Call | | BBB– | | | 1,918,008 | |
| | 1,130 | | Stonegate Community Development District, Florida, Special Assessment Revenue Bonds, Refunding Series 2013, 4.000%, 5/01/25 | 5/23 at 100.00 | | N/R | | | 1,192,794 | |
| | | | Sumter County Industrial Development Authority, Florida, Hospital Revenue Bonds, Central Florida Health Alliance Projects, Series 2014B: | | | | | | | |
| | 2,925 | | 5.000%, 7/01/29 | 7/24 at 100.00 | | A– | | | 3,432,604 | |
| | 2,350 | | 5.000%, 7/01/30 | 7/24 at 100.00 | | A– | | | 2,739,183 | |
| | 1,560 | | 5.000%, 7/01/31 | 7/24 at 100.00 | | A– | | | 1,812,205 | |
| | 1,400 | | 5.000%, 7/01/32 | 7/24 at 100.00 | | A– | | | 1,620,836 | |
| | | | Tampa-Hillsborough County Expressway Authority, Florida, Revenue Bonds, Tender Option Bond Trust 1132: | | | | | | | |
| | 400 | | 19.716%, 7/01/27 (IF) (5) | 7/22 at 100.00 | | A | | | 765,300 | |
| | 290 | | 19.716%, 7/01/28 (IF) (5) | 7/22 at 100.00 | | A | | | 547,984 | |
| | 1,000 | | 14.712%, 7/01/29 (IF) (5) | 7/22 at 100.00 | | A | | | 1,533,800 | |
| | 1,000 | | 14.712%, 7/01/30 (IF) (5) | 7/22 at 100.00 | | A | | | 1,508,250 | |
| | 1,000 | | 19.716%, 7/01/31 (IF) (5) | 7/22 at 100.00 | | A | | | 1,842,600 | |
| | 1,800 | | Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2006, 5.400%, 5/01/37 | 8/16 at 100.00 | | N/R | | | 1,801,836 | |
| | 1,695 | | Venetian Community Development District, Sarasota County, Florida, Capital Improvement Revenue Bonds, Series 2012-A2, 5.000%, 5/01/23 | 5/22 at 100.00 | | N/R | | | 1,826,227 | |
| | 2,525 | | Verandah West Community Development District, Florida, Capital Improvement Revenue Bonds, Refunding Series 2013, 4.000%, 5/01/23 | No Opt. Call | | N/R | | | 2,558,355 | |
| | 555 | | Vizcaya in Kendall Community Development District, Florida, Special Assessment Revenue Bonds, Phase Two Assessment Area, Refunding Series 2012A-2, 5.600%, 5/01/22 | No Opt. Call | | N/R | | | 593,134 | |
| | 67,395 | | Total Florida | | | | | | 77,541,125 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Georgia – 1.2% (1.0% of Total Investments) | | | | | | | |
| $ | 2,000 | | Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 | 6/20 at 100.00 | | Baa3 | | $ | 2,465,460 | |
| | | | Fulton County Residential Care Facilities Elderly Authority, Georgia, First Mortgage Revenue Bonds, Lenbrook Project, Series 2006A: | | | | | | | |
| | 1,200 | | 5.000%, 7/01/17 | No Opt. Call | | N/R | | | 1,224,456 | |
| | 4,500 | | 5.000%, 7/01/27 | 7/17 at 100.00 | | N/R | | | 4,555,665 | |
| | 7,700 | | Total Georgia | | | | | | 8,245,581 | |
| | | | Guam – 2.6% (2.1% of Total Investments) | | | | | | | |
| | 500 | | Government of Guam, Hotel Occupancy Tax Revenue Bonds, Series 2011A, 5.000%, 11/01/16 | No Opt. Call | | A– | | | 508,545 | |
| | | | Guam Government Department of Education, Certificates of Participation, John F. Kennedy High School Project, Series 2010A: | | | | | | | |
| | 1,500 | | 6.000%, 12/01/20 | No Opt. Call | | B+ | | | 1,615,020 | |
| | 325 | | 6.875%, 12/01/40 | 12/20 at 100.00 | | B+ | | | 358,690 | |
| | 1,100 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Refunding Series 2014A, 5.000%, 7/01/29 | 7/24 at 100.00 | | A– | | | 1,276,121 | |
| | 2,000 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2010, 5.250%, 7/01/25 | 7/20 at 100.00 | | A– | | | 2,222,500 | |
| | 1,365 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013, 5.250%, 7/01/24 | 7/23 at 100.00 | | A– | | | 1,637,167 | |
| | 865 | | Guam Government, General Obligation Bonds, 2009 Series A, 6.000%, 11/15/19 | No Opt. Call | | BB– | | | 958,861 | |
| | 2,500 | | Guam Government, General Obligation Bonds, 2009 Series A, 6.750%, 11/15/29 (Pre-refunded 11/15/19) | 11/19 at 100.00 | | N/R (4) | | | 2,993,425 | |
| | 2,000 | | Guam Government, General Obligation Bonds, Series 2007A, 5.000%, 11/15/23 (Pre-refunded 11/15/17) | 11/17 at 100.00 | | BB– (4) | | | 2,123,860 | |
| | 1,000 | | Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2009A, 5.375%, 12/01/24 | 12/19 at 100.00 | | BBB+ | | | 1,122,450 | |
| | 2,025 | | Guam Power Authority, Revenue Bonds, Series 2012A, 5.000%,
10/01/30 – AGM Insured | 10/22 at 100.00 | | AA | | | 2,411,188 | |
| | 200 | | Guam Power Authority, Revenue Bonds, Series 2014A, 5.000%, 10/01/31 | 10/24 at 100.00 | | BBB | | | 229,928 | |
| | 15,380 | | Total Guam | | | | | | 17,457,755 | |
| | | | Hawaii – 1.3% (1.0% of Total Investments) | | | | | | | |
| | 6,070 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Hawaii Pacific University, Series 2015, 5.000%, 7/01/20 | No Opt. Call | | N/R | | | 6,184,359 | |
| | 575 | | Hawaii Housing Finance and Development Corporation, Multifamily Housing Revenue Bonds, Wilikina Apartments Project, Series 2012A, 4.250%, 5/01/22 | No Opt. Call | | BBB | | | 594,125 | |
| | 1,550 | | Hawaii State Department of Transportation, Special Facility Revenue Bonds, Continental Airlines Inc., Series 1997, 5.625%, 11/15/27 (Alternative Minimum Tax) | 8/16 at 100.00 | | BB– | | | 1,555,952 | |
| | 8,195 | | Total Hawaii | | | | | | 8,334,436 | |
| | | | Idaho – 0.7% (0.6% of Total Investments) | | | | | | | |
| | 4,645 | | Madison County, Idaho, Hospital Revenue Certificates of Participation, Madison Memorial Hospital, Series 2006, 5.250%, 9/01/26 | 9/16 at 100.00 | | BB+ | | | 4,664,277 | |
| | | | Illinois – 12.5% (10.1% of Total Investments) | | | | | | | |
| | 1,070 | | Bellwood, Illinois, General Obligation Bonds, Series 2008, 7.000%, 12/01/29 (Pre-refunded 12/01/16) | 12/16 at 100.00 | | N/R (4) | | | 1,104,604 | |
| | 8,785 | | CenterPoint Intermodal Center Program Trust, Illinois, Class A Certificates, Series 2004, 3.490%, 6/15/23 | 8/16 at 100.00 | | N/R | | | 8,802,131 | |
| | 1,000 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues Series 2011C-1, 9.000%, 3/01/32 | 8/16 at 100.00 | | B+ | | | 999,610 | |
| | 1,000 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, Series 2016A, 7.000%, 12/01/26 | 12/25 at 100.00 | | B+ | | | 1,003,920 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Illinois (continued) | | | | | | | |
| | | | Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1: | | | | | | | |
| $ | 1,470 | | 0.000%, 12/01/22 – NPFG Insured | No Opt. Call | | AA– | | $ | 1,163,373 | |
| | 1,500 | | 0.000%, 12/01/27 – NPFG Insured | No Opt. Call | | AA– | | | 922,215 | |
| | 2,627 | | Chicago, Illinois, Certificates of Participation Tax Increment Bonds, 35th and State Redevelopment Project, Series 2012, 6.100%, 1/15/29 | No Opt. Call | | N/R | | | 2,645,890 | |
| | 254 | | Chicago, Illinois, Certificates of Participation Tax Increment Bonds, MetraMarket Project, Series 2010, 6.870%, 2/15/24 | 8/16 at 100.00 | | Ba2 | | | 254,409 | |
| | 879 | | Chicago, Illinois, Certificates of Participation, Tax Increment Allocation Revenue Bonds, Diversey-Narragansett Project, Series 2006, 7.460%, 2/15/26 (6) | 8/16 at 100.00 | | N/R | | | 621,155 | |
| | 2,465 | | Chicago, Illinois, General Obligation Bonds, Refunding Series 2008A, 5.250%, 1/01/33 | No Opt. Call | | BBB+ | | | 2,464,877 | |
| | 1,500 | | Chicago, Illinois, General Obligation Bonds, Refunding Series 2016C, 5.000%, 1/01/25 | No Opt. Call | | BBB+ | | | 1,539,960 | |
| | | | Cook County, Illinois, General Obligation Bonds, Tender Option Bond Trust 2015-XF0124: | | | | | | | |
| | 1,000 | | 19.036%, 11/15/20 (IF) (5) | No Opt. Call | | AA– | | | 1,540,150 | |
| | 3,040 | | 19.036%, 11/15/20 (IF) (5) | No Opt. Call | | AA– | | | 4,337,928 | |
| | 1,000 | | Cook County, Illinois, Recovery Zone Facility Revenue Bonds, Navistar International Corporation Project, Series 2010, 6.500%, 10/15/40 | 10/20 at 100.00 | | Caa1 | | | 1,001,780 | |
| | | | Illinois Finance Authority, Charter School Revenue Bonds, Chicago Charter School Foundation, Series 2007: | | | | | | | |
| | 1,650 | | 5.000%, 12/01/21 | 12/16 at 100.00 | | BBB | | | 1,671,945 | |
| | 4,000 | | 5.000%, 12/01/26 | 12/16 at 100.00 | | BBB | | | 4,037,800 | |
| | 5,530 | | Illinois Finance Authority, Recovery Zone Facility Revenue Bonds, Navistar International Corporation Project, Series 2010, 6.500%, 10/15/40 | 10/20 at 100.00 | | Caa1 | | | 5,539,843 | |
| | | | Illinois Finance Authority, Revenue Bonds, Centegra Health System, Tender Option Bond Trust 1122: | | | | | | | |
| | 480 | | 18.902%, 9/01/21 (IF) (5) | No Opt. Call | | BBB | | | 822,509 | |
| | 330 | | 18.868%, 9/01/21 (IF) (5) | No Opt. Call | | BBB | | | 565,026 | |
| | 435 | | 18.853%, 9/01/22 (IF) (5) | No Opt. Call | | BBB | | | 778,306 | |
| | 3,250 | | Illinois Finance Authority, Revenue Bonds, Friendship Village of Schaumburg, Series 2005A, 5.375%, 2/15/25 | 8/16 at 100.00 | | BB– | | | 3,251,463 | |
| | | | Illinois Finance Authority, Revenue Bonds, Illinois Institute of Technology, Refunding Series 2006A: | | | | | | | |
| | 2,680 | | 5.000%, 4/01/24 | 8/16 at 100.00 | | Baa3 | | | 2,681,688 | |
| | 1,950 | | 5.000%, 4/01/26 | 8/16 at 100.00 | | Baa3 | | | 1,950,897 | |
| | | | Illinois Finance Authority, Revenue Bonds, Ingalls Health System, Series 2013: | | | | | | | |
| | 650 | | 4.000%, 5/15/18 | No Opt. Call | | Baa1 | | | 677,736 | |
| | 770 | | 4.000%, 5/15/19 | No Opt. Call | | Baa1 | | | 816,092 | |
| | 895 | | 5.000%, 5/15/20 | No Opt. Call | | Baa1 | | | 991,767 | |
| | 1,035 | | 5.000%, 5/15/21 | No Opt. Call | | Baa1 | | | 1,168,681 | |
| | 1,210 | | 5.000%, 5/15/22 | No Opt. Call | | Baa1 | | | 1,386,176 | |
| | 1,575 | | 5.000%, 5/15/24 | 5/22 at 100.00 | | Baa1 | | | 1,784,648 | |
| | 3,400 | | Illinois Finance Authority, Revenue Bonds, Resurrection Health Care Corporation, Refunding Series 2009, 6.125%, 5/15/25 | 5/19 at 100.00 | | Baa2 | | | 3,821,294 | |
| | 100 | | Illinois Finance Authority, Revenue Bonds, Resurrection Health Care Corporation, Refunding Series 2009, 6.125%, 5/15/25 (Pre-refunded 5/15/19) | 5/19 at 100.00 | | N/R (4) | | | 114,984 | |
| | 620 | | Illinois Finance Authority, Revenue Bonds, Swedish Covenant Hospital, Refunding Series 2010A, 5.000%, 8/15/17 | No Opt. Call | | BBB+ | | | 644,124 | |
| | 2,500 | | Illinois Sports Facility Authority, State Tax Supported Bonds, Refunding Series 2014, 5.000%, 6/15/27 – AGM Insured | 6/24 at 100.00 | | AA | | | 2,860,200 | |
| | 1,000 | | Illinois Sports Facility Authority, State Tax Supported Bonds, Series 2001, 0.000%, 6/15/23 – AMBAC Insured | No Opt. Call | | A | | | 809,920 | |
| | 1,450 | | Illinois State, General Obligation Bonds, February Series 2014, 5.000%, 2/01/24 | No Opt. Call | | A– | | | 1,631,627 | |
| | 1,500 | | Illinois State, General Obligation Bonds, January Series 2016, 5.000%, 1/01/21 | No Opt. Call | | A– | | | 1,653,885 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Illinois (continued) | | | | | | | |
| | | | Illinois State, General Obligation Bonds, Refunding Series 2012: | | | | | | | |
| $ | 1,000 | | 5.000%, 8/01/20 – AGM Insured | No Opt. Call | | AA | | $ | 1,122,310 | |
| | 1,750 | | 5.000%, 8/01/22 | No Opt. Call | | A– | | | 1,952,177 | |
| | 4,000 | | 5.000%, 8/01/23 – AGM Insured | No Opt. Call | | AA | | | 4,641,400 | |
| | 2,000 | | Illinois State, General Obligation Bonds, Tender Option Bond Trust 2015-XF1010, 15.669%, 8/01/23 – AGM Insured (IF) (5) | No Opt. Call | | AA | | | 3,282,800 | |
| | | | Romeoville, Illinois, Revenue Bonds, Lewis University Project, Series 2015: | | | | | | | |
| | 1,100 | | 5.000%, 10/01/25 | 8/16 at 100.00 | | BBB+ | | | 1,309,517 | |
| | 200 | | 5.000%, 10/01/26 | 4/25 at 100.00 | | BBB+ | | | 235,972 | |
| | 2,500 | | Wauconda, Illinois, Special Service Area 1 Social Tax Bonds, Liberty Lake Project, Refunding Series 2015, 5.000%, 3/01/33 – BAM Insured | 3/25 at 100.00 | | AA | | | 2,896,775 | |
| | 77,150 | | Total Illinois | | | | | | 83,503,564 | |
| | | | Indiana – 3.1% (2.5% of Total Investments) | | | | | | | |
| | 1,250 | | Carmel, Indiana, Revenue Bonds, Barrington of Carmel Project, Series 2012A, 6.000%, 11/15/22 | No Opt. Call | | N/R | | | 1,398,962 | |
| | 4,345 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, 21st Century Charter School Project, Series 2013A, 6.000%, 3/01/33 | 3/23 at 100.00 | | B+ | | | 4,326,360 | |
| | 915 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, CFM-Northwest Indiana, LLC Project, Refunding Series 2013A, 6.250%, 7/01/23 | No Opt. Call | | B– | | | 950,886 | |
| | 890 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, Charter Facilities Management Indianapolis LLC Project, Series 2013A, 6.250%, 7/01/23 | No Opt. Call | | B– | | | 924,906 | |
| | 760 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, Drexel Foundation For Educational Excellence, Inc., Series 2009A, 6.000%, 10/01/21 | 10/19 at 100.00 | | B– | | | 744,823 | |
| | 5,590 | | Indiana Finance Authority, Environmental Improvement Revenue Bonds, United States Steel Corporation Project, Refunding Series 2010, 6.000%, 12/01/26 | 6/20 at 100.00 | | B | | | 5,275,003 | |
| | 6,330 | | Indiana Finance Authority, Environmental Improvement Revenue Bonds, United States Steel Corporation Project, Refunding Series 2011, 6.000%, 12/01/19 | No Opt. Call | | B | | | 6,319,745 | |
| | 380 | | Valparaiso, Indiana, Exempt Facilities Revenue Bonds, Pratt Paper LLC Project, Series 2013, 5.875%, 1/01/24 (Alternative Minimum Tax) | No Opt. Call | | N/R | | | 444,608 | |
| | 20,460 | | Total Indiana | | | | | | 20,385,293 | |
| | | | Iowa – 2.3% (1.9% of Total Investments) | | | | | | | |
| | 2,600 | | Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, 5.500%, 7/01/25 | 7/16 at 100.00 | | BB+ | | | 2,605,798 | |
| | | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2013: | | | | | | | |
| | 8,630 | | 5.000%, 12/01/19 | No Opt. Call | | B+ | | | 8,907,886 | |
| | 1,150 | | 5.500%, 12/01/22 | 12/18 at 100.00 | | B+ | | | 1,193,930 | |
| | 2,100 | | 5.250%, 12/01/25 | 12/23 at 100.00 | | B+ | | | 2,247,588 | |
| | | | Iowa Higher Education Loan Authority, Private College Facility Revenue Bonds, Upper Iowa University Project, Series 2012: | | | | | | | |
| | 125 | | 3.000%, 9/01/16 | No Opt. Call | | BB | | | 125,169 | |
| | 180 | | 4.000%, 9/01/18 | No Opt. Call | | BB | | | 184,358 | |
| | 200 | | 3.000%, 9/01/19 | No Opt. Call | | BB | | | 199,516 | |
| | 14,985 | | Total Iowa | | | | | | 15,464,245 | |
| | | | Kansas – 2.1% (1.7% of Total Investments) | | | | | | | |
| | 2,000 | | Kansas Development Finance Authority Hospital Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Tender Option Bond Trust 1125, 20.713%, 11/15/32 (IF) (5) | 5/22 at 100.00 | | AA | | | 3,787,100 | |
| | 310 | | Kansas Development Finance Authority, Hospital Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Tender Option Bond Trust 2015-XF2190, 16.747%, 5/15/20 (IF) (5) | No Opt. Call | | AA | | | 533,386 | |
| | 200 | | Kansas Power Pool, a Municipal Energy Agency Electric Utility Revenue Bonds, DogWood Facility, Series 2015A, 5.000%, 12/01/28 | 12/25 at 100.00 | | A3 | | | 238,226 | |
| | 2,000 | | Overland Park, Kansas, Sales Tax Revenue Bonds, Prairiefire Community Improvement District No. 1 Project, Series 2012B, 6.100%, 12/15/34 | No Opt. Call | | N/R | | | 1,991,160 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Kansas (continued) | | | | | | | |
| $ | 8,000 | | Overland Park, Kansas, Sales Tax Special Obligation Revenue Bonds, Prairiefire at Lionsgate Project, Series 2012, 5.250%, 12/15/29 | No Opt. Call | | N/R | | $ | 7,300,640 | |
| | 12,510 | | Total Kansas | | | | | | 13,850,512 | |
| | | | Louisiana – 1.4% (1.2% of Total Investments) | | | | | | | |
| | | | Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East Jefferson General Hospital, Refunding Series 2011: | | | | | | | |
| | 1,850 | | 6.250%, 7/01/26 | No Opt. Call | | BB | | | 1,856,290 | |
| | 60 | | 6.250%, 7/01/31 | 7/21 at 100.00 | | BB | | | 68,506 | |
| | 1,500 | | Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 | 11/17 at 100.00 | | BBB+ | | | 1,620,120 | |
| | 2,150 | | Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Capital Projects and Equipment Acquisition Program, Series 2000A, 6.300%, 7/01/30 – (Pre-Refunded 7/21/16) AMBAC Insured | 7/16 at 100.00 | | N/R (4) | | | 2,483,744 | |
| | | | Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, Series 2011: | | | | | | | |
| | 250 | | 5.250%, 5/15/22 (Pre-refunded 5/15/21) | 5/21 at 100.00 | | A– (4) | | | 297,912 | |
| | 500 | | 6.250%, 5/15/31 (Pre-refunded 5/15/21) | 5/21 at 100.00 | | A– (4) | | | 619,780 | |
| | 1,000 | | Louisiana Stadium and Exposition District, Revenue Refunding Bonds, Senior Lien Series 2013A, 5.000%, 7/01/22 | No Opt. Call | | A | | | 1,199,550 | |
| | 1,000 | | New Orleans, Louisiana, Water Revenue Bonds, Refunding Series 2014, 5.000%, 12/01/21 | No Opt. Call | | A– | | | 1,172,090 | |
| | 285 | | Saint Tammany Public Trust Financing Authority, Louisiana, Revenue Bonds, Christwood Project, Refunding Series 2015, 5.250%, 11/15/29 | 11/24 at 100.00 | | N/R | | | 304,748 | |
| | 8,595 | | Total Louisiana | | | | | | 9,622,740 | |
| | | | Maine – 0.1% (0.0% of Total Investments) | | | | | | | |
| | 350 | | Maine Health and Higher Educational Facilities Authority Revenue Bonds, Eastern Maine Medical Center Obligated Group Issue, Series 2013, 5.000%, 7/01/22 | No Opt. Call | | BBB | | | 406,487 | |
| | | | Massachusetts – 1.0% (0.8% of Total Investments) | | | | | | | |
| | 1,755 | | Massachusetts Development Finance Agency, Revenue Bonds, Boston Architectural College, Series 2006, 5.000%, 1/01/27 – ACA Insured | 1/17 at 100.00 | | N/R | | | 1,767,074 | |
| | 1,870 | | Massachusetts Educational Financing Authority, Education Loan Revenue Bonds Issue K Series 2013, 5.250%, 7/01/29 (Alternative Minimum Tax) | 7/22 at 100.00 | | AA | | | 2,056,177 | |
| | 3,150 | | Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 – AMBAC Insured (Alternative Minimum Tax) | 7/16 at 100.00 | | N/R | | | 3,162,506 | |
| | 6,775 | | Total Massachusetts | | | | | | 6,985,757 | |
| | | | Michigan – 6.5% (5.2% of Total Investments) | | | | | | | |
| | 205 | | Detroit Downtown Development Authority, Michigan, Tax Increment Refunding Bonds, Development Area 1 Projects, Series 1998A, 4.750%,
7/01/25 – NPFG Insured | 7/16 at 100.00 | | AA– | | | 205,131 | |
| | | | Detroit, Michigan, General Obligation Bonds, Series 2001A-1: | | | | | | | |
| | 155 | | 5.375%, 4/01/18 – NPFG Insured | 8/16 at 100.00 | | A3 | | | 155,639 | |
| | 310 | | 5.000%, 4/01/19 | 8/16 at 100.00 | | A3 | | | 310,282 | |
| | 46 | | Detroit, Michigan, General Obligation Bonds, Series 2005A, 5.000%, 4/01/22 – AGM Insured | 8/16 at 100.00 | | AA | | | 46,603 | |
| | 1,080 | | East Lansing, Michigan, Economic Development Corporation Limited Obligation Bonds, Burcham Hills Retirement Community First Mortgage, Series 2007-B1, 5.250%, 7/01/37 | 8/16 at 100.00 | | N/R | | | 1,080,594 | |
| | 1,270 | | Flint Hospital Building Authority, Michigan, Building Authority Revenue Bonds, Hurley Medical Center, Series 2013A, 5.000%, 7/01/23 | No Opt. Call | | BBB– | | | 1,341,209 | |
| | | | Michigan Finance Authority, Detroit, Michigan, Local Government Loan Program, Unlimited Tax General Obligation Bonds, Series 2014G-2A: | | | | | | | |
| | 845 | | 5.375%, 4/01/18 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 848,481 | |
| | 1,690 | | 5.000%, 4/01/19 | 8/16 at 100.00 | | AA– | | | 1,691,538 | |
| | 254 | | Michigan Finance Authority, Detroit, Michigan, Local Government Loan Program, Unlimited Tax General Obligation Bonds, Series 2014G-8A, 5.000%, 4/01/22 – AGM Insured | 8/16 at 100.00 | | AA | | | 254,060 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Michigan (continued) | | | | | | | |
| | | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & Sewerage Department Water Supply System Local Project, Series 2014C-3: | | | | | | | |
| $ | 5,000 | | 5.000%, 7/01/24 – AGM Insured | No Opt. Call | | AA | | $ | 6,108,150 | |
| | 5,000 | | 5.000%, 7/01/25 – AGM Insured | 7/24 at 100.00 | | AA | | | 6,062,550 | |
| | 5,000 | | 5.000%, 7/01/26 – AGM Insured | 7/24 at 100.00 | | AA | | | 5,994,750 | |
| | | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & Sewerage Department Water Supply System Local Project, Series 2014C-7: | | | | | | | |
| | 2,000 | | 5.000%, 7/01/25 – NPFG Insured | 7/24 at 100.00 | | AA– | | | 2,403,620 | |
| | 2,000 | | 5.000%, 7/01/26 – NPFG Insured | 7/24 at 100.00 | | AA– | | | 2,383,260 | |
| | 750 | | Michigan Finance Authority, Public School Academy Limited Obligation Revenue Bonds, Old Redford Academy Project, Series 2010A, 5.250%, 12/01/20 | No Opt. Call | | BB | | | 769,125 | |
| | 340 | | Michigan Finance Authority, Public School Academy Revenue Bonds, Detroit Service Learning Academy Project, Refunding Series 2011, 6.000%, 10/01/21 | No Opt. Call | | BB– | | | 342,645 | |
| | 825 | | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Tender Option Bond Trust 2015-XF0126, 20.585%, 12/01/18 (IF) (5) | No Opt. Call | | AA– | | | 1,413,778 | |
| | 535 | | Michigan Public Educational Facilities Authority, Limited Obligation Revenue Bonds, Richfield Public School Academy, Series 2007, 5.000%, 9/01/22 | 9/17 at 100.00 | | BBB– | | | 544,047 | |
| | 1,900 | | Michigan Strategic Fund, Limited Obligation Revenue Bonds, Detroit Thermal LLC Project, Series 2013, 8.500%, 12/01/30 (Alternative Minimum Tax) | 12/23 at 100.00 | | N/R | | | 1,885,503 | |
| | 7,505 | | Michigan Strategic Fund, Limited Obligation Revenue Bonds, Events Center Project, Series 2014A, 4.125%, 7/01/45 (Mandatory put 1/01/19) | 7/18 at 100.00 | | N/R | | | 7,686,471 | |
| | 1,625 | | Star International Academy, Wayne County, Michigan, Public School Academy Revenue Bonds, Refunding Series 2012, 5.000%, 3/01/33 | No Opt. Call | | BBB | | | 1,706,737 | |
| | 38,335 | | Total Michigan | | | | | | 43,234,173 | |
| | | | Minnesota – 0.1% (0.1% of Total Investments) | | | | | | | |
| | | | Minnesota Higher Education Facilities Authority, Revenue Bonds, Minneapolis College of Art and Design, Series 2015-8D: | | | | | | | |
| | 260 | | 4.000%, 5/01/24 | 5/23 at 100.00 | | Baa2 | | | 284,513 | |
| | 250 | | 4.000%, 5/01/26 | 5/23 at 100.00 | | Baa2 | | | 268,960 | |
| | 510 | | Total Minnesota | | | | | | 553,473 | |
| | | | Mississippi – 0.6% (0.5% of Total Investments) | | | | | | | |
| | 1,845 | | Mississippi Business Finance Corporation, Gulf Opportunity Zone Industrial Development Revenue Bonds, Northrop Grumman Ship Systems Inc. Project, Series 2006, 4.550%, 12/01/28 | 12/16 at 100.00 | | BB+ | | | 1,867,029 | |
| | | | Mississippi Development Bank Special Obligation Bonds, Marshall County Industrial Development Authority, Mississippi Highway Construction Project, Tender Option Bond Trust 3315: | | | | | | | |
| | 800 | | 21.126%, 1/01/20 (IF) (5) | No Opt. Call | | AA– | | | 1,479,280 | |
| | 500 | | 21.126%, 1/01/20 (IF) (5) | No Opt. Call | | AA– | | | 892,875 | |
| | 3,145 | | Total Mississippi | | | | | | 4,239,184 | |
| | | | Missouri – 1.4% (1.2% of Total Investments) | | | | | | | |
| | 3,500 | | Kansas City Tax Increment Financing Commission, Missouri, Tax Increment Revenue Bonds, Briarcliff West Project, Series 2006A, 5.400%, 6/01/24 | 6/16 at 100.00 | | N/R | | | 3,506,055 | |
| | 590 | | Pevely, Missouri, Neighborhood Improvement District Bonds, Southern Heights Project, Series 2004, 5.250%, 3/01/22 – RAAI Insured | 8/16 at 100.00 | | AA | | | 591,457 | |
| | 3,000 | | Poplar Bluff Regional Transportation Development District, Missouri, Transportation Sales Tax Revenue Bonds, Series 2012, 4.000%, 12/01/36 | No Opt. Call | | BBB | | | 3,183,270 | |
| | 865 | | Raymore, Missouri, Tax Increment Revenue Bonds, Raymore Galleria Project, Refunding & Improvement Series 2014A, 5.000%, 5/01/24 | 5/23 at 100.00 | | N/R | | | 925,213 | |
| | | | St. Joseph Industrial Development Authority, Missouri, Tax Increment Bonds, Shoppes at North Village Project, Series 2005B: | | | | | | | |
| | 405 | | 5.375%, 11/01/23 | 8/16 at 100.00 | | N/R | | | 405,765 | |
| | 905 | | 5.500%, 11/01/27 | 8/16 at 100.00 | | N/R | | | 906,448 | |
| | 9,265 | | Total Missouri | | | | | | 9,518,208 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Nebraska – 0.7% (0.6% of Total Investments) | | | | | | | |
| $ | 2,000 | | Central Plains Energy Project, Nebraska, Gas Project 1 Revenue Bonds, Series 2007A, 5.250%, 12/01/21 | No Opt. Call | | A | | $ | 2,360,940 | |
| | 1,445 | | Central Plains Energy Project, Nebraska, Gas Project 3 Revenue Bonds, Series 2012, 5.000%, 9/01/32 | 9/22 at 100.00 | | A | | | 1,631,362 | |
| | 635 | | Douglas County Hospital Authority 2, Nebraska, Hospital Revenue Bonds, Madonna Rehabilitation Hospital Project, Series 2014, 5.000%, 5/15/26 | 5/24 at 100.00 | | BBB+ | | | 751,669 | |
| | 4,080 | | Total Nebraska | | | | | | 4,743,971 | |
| | | | Nevada – 1.5% (1.2% of Total Investments) | | | | | | | |
| | 1,630 | | Carson City, Nevada, Hospital Revenue Bonds, Carson-Tahoe Regional Healthcare Project, Refunding Series 2012, 5.000%, 9/01/27 | No Opt. Call | | BBB+ | | | 1,845,388 | |
| | 620 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.000%, 7/01/30 | 1/20 at 100.00 | | A+ | | | 695,194 | |
| | | | Henderson, Nevada, Limited Obligation Bonds, Local Improvement District T-13 Cornerstone, Refunding Series 2013: | | | | | | | |
| | 615 | | 4.000%, 3/01/17 | No Opt. Call | | N/R | | | 619,680 | |
| | 735 | | 4.000%, 3/01/18 | No Opt. Call | | N/R | | | 743,247 | |
| | 690 | | 4.000%, 3/01/19 | No Opt. Call | | N/R | | | 697,521 | |
| | 790 | | 5.000%, 3/01/20 | No Opt. Call | | N/R | | | 824,705 | |
| | 835 | | 5.000%, 3/01/21 | No Opt. Call | | N/R | | | 873,377 | |
| | 865 | | 5.000%, 3/01/22 | No Opt. Call | | N/R | | | 905,404 | |
| | 1,800 | | Henderson, Nevada, Limited Obligation Bonds, Local Improvement District T-18, Inspirada Series 2006, 5.150%, 9/01/21 | 9/16 at 100.00 | | N/R | | | 1,779,858 | |
| | 1,000 | | Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 7.500%, 6/15/23 (Pre-refunded 6/15/19) | 6/19 at 100.00 | | BBB+ (4) | | | 1,191,970 | |
| | 9,580 | | Total Nevada | | | | | | 10,176,344 | |
| | | | New Hampshire – 0.2% (0.2% of Total Investments) | | | | | | | |
| | | | Manchester Housing and Redevelopment Authority, New Hampshire, Revenue Bonds, Series 2000B: | | | | | | | |
| | 265 | | 0.000%, 1/01/17 – ACA Insured | No Opt. Call | | AA | | | 261,277 | |
| | 500 | | 0.000%, 1/01/18 – ACA Insured | No Opt. Call | | AA | | | 480,110 | |
| | 320 | | 0.000%, 1/01/19 – ACA Insured | No Opt. Call | | AA | | | 298,502 | |
| | 370 | | 0.000%, 1/01/20 – ACA Insured | No Opt. Call | | AA | | | 334,498 | |
| | 1,455 | | Total New Hampshire | | | | | | 1,374,387 | |
| | | | New Jersey – 6.8% (5.5% of Total Investments) | | | | | | | |
| | 3,275 | | Burlington County Bridge Commission, New Jersey, Economic Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 | 1/18 at 100.00 | | N/R | | | 3,444,219 | |
| | 900 | | New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, Series 2012, 5.000%, 6/15/25 | 6/22 at 100.00 | | BBB+ | | | 998,748 | |
| | | | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Tender Option Bond Trust 1151: | | | | | | | |
| | 1,440 | | 3.045%, 9/01/25 (IF) (5) | 3/25 at 100.00 | | A– | | | 677,664 | |
| | 1,200 | | 4.530%, 9/01/27 (IF) (5) | 3/23 at 100.00 | | A– | | | 535,620 | |
| | | | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999: | | | | | | | |
| | 3,000 | | 5.125%, 9/15/23 (Alternative Minimum Tax) | 9/16 at 100.00 | | BB– | | | 3,360,450 | |
| | 7,550 | | 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | | BB– | | | 8,396,883 | |
| | 7,000 | | New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Refunding Series 2011, 6.000%, 7/01/26 | 7/21 at 100.00 | | BB+ | | | 7,695,380 | |
| | 1,200 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Princeton HealthCare System, Series 2016A, 5.000%, 7/01/30 | 7/26 at 100.00 | | Baa2 | | | 1,464,108 | |
| | 5,000 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Joseph's Healthcare System Obligated Group Issue, Series 2008, 6.625%, 7/01/38 | 7/18 at 100.00 | | BBB– | | | 5,478,600 | |
| | 910 | | New Jersey Health Care Facilities Financing Authority, Trinitas Hospital Obligated Group, Series 2007A, 5.250%, 7/01/23 | 7/17 at 100.00 | | BBB | | | 952,269 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | New Jersey (continued) | | | | | | | |
| $ | 500 | | New Jersey Turnpike Authority, Revenue Bonds, Tender Option Bond Trust 1154, 19.836%, 1/01/24 (IF) (5) | 7/22 at 100.00 | | A+ | | $ | 999,675 | |
| | 10,985 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 4.625%, 6/01/26 | 6/17 at 100.00 | | B+ | | | 11,096,827 | |
| | 42,960 | | Total New Jersey | | | | | | 45,100,443 | |
| | | | New Mexico – 0.5% (0.4% of Total Investments) | | | | | | | |
| | 1,215 | | Bernalillo County, New Mexico, Multifamily Housing Revenue Bonds, Valencia Retirement Apartments Project, Series 2001A, 5.450%, 6/01/34 – AMBAC Insured (Alternative Minimum Tax) | 8/16 at 100.00 | | N/R | | | 1,215,875 | |
| | 2,000 | | Santa Fe, New Mexico, Retirement Facilities Revenue Bonds, EL Castillo Retirement Residences Project, Series 2012, 5.000%, 5/15/32 | No Opt. Call | | BBB– | | | 2,152,740 | |
| | 3,215 | | Total New Mexico | | | | | | 3,368,615 | |
| | | | New York – 6.2% (5.0% of Total Investments) | | | | | | | |
| | | | Build New York City Resource Corporation, New York, Revenue Bonds, Bronx Charter School for Excellence, Series 2013A: | | | | | | | |
| | 505 | | 4.000%, 4/01/20 | No Opt. Call | | BBB– | | | 526,922 | |
| | 570 | | 4.000%, 4/01/23 | No Opt. Call | | BBB– | | | 595,616 | |
| | | | Build New York City Resource Corporation, New York, Solid Waste Disposal Revenue Bonds, Pratt Paper NY, Inc. Project, Series 2014: | | | | | | | |
| | 290 | | 3.750%, 1/01/20 (Alternative Minimum Tax) | No Opt. Call | | N/R | | | 303,279 | |
| | 1,080 | | 4.500%, 1/01/25 (Alternative Minimum Tax) | No Opt. Call | | N/R | | | 1,189,998 | |
| | | | Dormitory Authority of the State of New York, Insured Revenue Bonds, Pace University, Series 2013A: | | | | | | | |
| | 820 | | 5.000%, 5/01/23 | No Opt. Call | | BB+ | | | 957,350 | |
| | 975 | | 5.000%, 5/01/28 | 5/23 at 100.00 | | BB+ | | | 1,093,326 | |
| | 20 | | Dormitory Authority of the State of New York, Insured Revenue Bonds, Pace University, Series 2013A, 5.000%, 5/01/23 (ETM) | No Opt. Call | | N/R (4) | | | 24,463 | |
| | 25 | | Dormitory Authority of the State of New York, Insured Revenue Bonds, Pace University, Series 2013A, 5.000%, 5/01/28 (Pre-refunded 5/01/23) | 5/23 at 100.00 | | N/R (4) | | | 30,579 | |
| | 1,000 | | Dormitory Authority of the State of New York, Orange Regional Medical Center Obligated Group Revenue Bonds, Series 2008, 6.500%, 12/01/21 | 12/18 at 100.00 | | Ba1 | | | 1,109,980 | |
| | 1,000 | | Nassau County Tobacco Settlement Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Refunding Series 2006A-2, 5.250%, 6/01/26 | 6/16 at 100.00 | | BB– | | | 1,000,810 | |
| | 4,850 | | New York City Industrial Development Agency, New York, American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.625%, 8/01/25 (Alternative Minimum Tax) | 8/16 at 101.00 | | N/R | | | 4,954,711 | |
| | 200 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn College of Aeronautics, Series 2006A, 5.000%, 12/01/16 | No Opt. Call | | BB– | | | 202,250 | |
| | 70 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn College of Aeronautics, Series 2006B, 5.000%, 12/01/16 | No Opt. Call | | BB– | | | 70,788 | |
| | 190 | | New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 5.000%,
1/01/22 – AMBAC Insured | 1/17 at 100.00 | | BB+ | | | 193,901 | |
| | 6,500 | | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, 3 World Trade Center Project, Class 2 Series 2014, 5.150%, 11/15/34 | 11/24 at 100.00 | | N/R | | | 7,279,025 | |
| | 1,600 | | Seneca Nation of Indians Capital Improvements Authority, New York, Special Obligation Bonds, Series 2007A, 5.000%, 12/01/23 | 6/17 at 100.00 | | N/R | | | 1,643,792 | |
| | 5,000 | | Suffolk County Industrial Development Agency, New York, Continuing Care Retirement Community Revenue Bonds, Jefferson's Ferry Project, Series 2006, 5.000%, 11/01/28 | 11/16 at 100.00 | | BBB– | | | 5,053,750 | |
| | | | TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: | | | | | | | |
| | 5,060 | | 5.000%, 6/01/26 | 6/16 at 100.00 | | BBB | | | 5,071,031 | |
| | 10,000 | | 5.000%, 6/01/34 | 6/16 at 100.00 | | B | | | 9,999,200 | |
| | 39,755 | | Total New York | | | | | | 41,300,771 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Ohio – 6.6% (5.3% of Total Investments) | | | | | | | |
| $ | 21,900 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2, 5.125%, 6/01/24 | 6/17 at 100.00 | | B– | | $ | 21,341,112 | |
| | 2,000 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19 | No Opt. Call | | BBB– | | | 2,216,880 | |
| | 130 | | Ohio Air Quality Development Authority, Revenue Refunding Bonds, AK Steel Holding Corporation, Series 2012A, 6.750%, 6/01/24 (Alternative Minimum Tax) | 2/22 at 100.00 | | CCC+ | | | 101,960 | |
| | 250 | | Ohio Water Development Authority, Ohio, Environmental Improvement Bonds, United States Steel Corporation Project, Refunding Series 2011, 6.600%, 5/01/29 | No Opt. Call | | B | | | 235,623 | |
| | 3,400 | | Southeastern Ohio Port Authority, Hospital Facilities Revenue Bonds, Memorial Health System Obligated Group Project, Refunding and Improvement Series 2012, 5.000%, 12/01/22 | No Opt. Call | | BB | | | 3,762,916 | |
| | 6,000 | | State of Ohio, Solid Waste Disposal Revenue Bonds (USG Corporation Project) Series 1997 Remarketed, 5.600%, 8/01/32 (Alternative Minimum Tax) | 8/16 at 100.00 | | B | | | 6,002,220 | |
| | | | Toledo-Lucas County Port Authority, Ohio, Special Assessment Revenue Bonds, Crocker Park Public Improvement Project, Series 2003: | | | | | | | |
| | 1,675 | | 5.250%, 12/01/23 (Pre-refunded 8/12/16) | 8/16 at 100.00 | | BB (4) | | | 1,680,779 | |
| | 8,445 | | 5.375%, 12/01/35 (Pre-refunded 8/12/16) | 8/16 at 100.00 | | BB (4) | | | 8,455,556 | |
| | 43,800 | | Total Ohio | | | | | | 43,797,046 | |
| | | | Oklahoma – 0.6% (0.5% of Total Investments) | | | | | | | |
| | 3,300 | | Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, American Airlines Inc., Refunding Series 2015, 5.000%, 6/01/35 (Mandatory put 6/01/25) (Alternative Minimum Tax) | No Opt. Call | | BB– | | | 3,808,761 | |
| | | | Oregon – 0.3% (0.2% of Total Investments) | | | | | | | |
| | 1,000 | | Astoria Hospital Facilities Authority, Oregon, Hospital Revenue and Refunding Bonds, Columbia Memorial Hospital, Series 2012, 5.000%, 8/01/31 | No Opt. Call | | BBB– | | | 1,087,420 | |
| | 730 | | Port of Saint Helens, Oregon, Pollution Control Revenue Bonds, Boise Cascade Project, Series 1997, 5.650%, 12/01/27 | No Opt. Call | | N/R | | | 732,329 | |
| | 1,730 | | Total Oregon | | | | | | 1,819,749 | |
| | | | Pennsylvania – 6.0% (4.8% of Total Investments) | | | | | | | |
| | 2,229 | | Aliquippa Municipal Water Authority, Pennsylvania, Water and Sewer Revenue Bonds, Subordinated Series 2013, 5.000%, 5/15/26 | No Opt. Call | | N/R | | | 2,325,082 | |
| | | | Allegheny Country Industrial Development Authority, Pennsylvania, Environmental Improvement Revenue Bonds, United States Steel Corporation Project, Refunding Series 2009: | | | | | | | |
| | 3,320 | | 6.500%, 5/01/17 | No Opt. Call | | B | | | 3,361,799 | |
| | 3,300 | | 6.750%, 11/01/24 | 11/19 at 100.00 | | B | | | 3,095,532 | |
| | 420 | | 6.875%, 5/01/30 | 11/19 at 100.00 | | B | | | 402,058 | |
| | 2,265 | | Allegheny County Industrial Development Authority, Pennsylvania, Revenue Bonds, United States Steel Corporation, Series 2005, 5.500%, 11/01/16 | No Opt. Call | | B | | | 2,278,930 | |
| | 835 | | Allegheny County Redevelopment Authority, Pennsylvania, TIF Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23 | 8/16 at 100.00 | | N/R | | | 835,042 | |
| | 3,685 | | Allentown Neighborhood Improvement Zone Development Authority, Pennsylvania, Tax Revenue Bonds, Series 2012A, 5.000%, 5/01/32 | No Opt. Call | | Baa2 | | | 4,057,590 | |
| | 4,025 | | Butler County Industrial Development Authority, Pennsylvania, Revenue Refunding Bonds, AK Steel Corporation Project, Series 2012-A, 6.250%, 6/01/20 (Alternative Minimum Tax) | No Opt. Call | | CCC+ | | | 3,321,511 | |
| | 1,450 | | Doylestown Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Series 2013A, 5.000%, 7/01/23 | No Opt. Call | | BBB | | | 1,661,685 | |
| | 825 | | East Hempfield Township Industrial Development Authority, Pennsylvania, Student Services Inc. – Student Housing Project at Millersville University, Series 2015, 5.000%, 7/01/30 | 7/25 at 100.00 | | BBB– | | | 924,833 | |
| | 1,000 | | Montgomery County Industrial Development Authority, Pennsylvania, Revenue Bonds, Whitemarsh Continuing Care Retirement Community Project, Series 2015, 5.000%, 1/01/30 | 1/25 at 100.00 | | N/R | | | 1,036,680 | |
| | 1,595 | | Northampton County Industrial Development Authority, Pennsylvania, Revenue Bonds, Morningstar Senior Living, Inc., Series 2012, 5.000%, 7/01/27 | No Opt. Call | | BBB– | | | 1,701,610 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Pennsylvania (continued) | | | | | | | |
| $ | 4,000 | | Pennsylvania Economic Development Finance Authority, Solid Waste Disposal Revenue Bonds (USG Corporation Project) Series 1999, 6.000%, 6/01/31 (Alternative Minimum Tax) | 6/16 at 100.00 | | B | | $ | 4,001,360 | |
| | 750 | | Pennsylvania Economic Development Financing Authority, Sewage Sludge Disposal Revenue Bonds, Philadelphia Biosolids Facility Project, Series 2009, 6.250%, 1/01/32 | 1/20 at 100.00 | | BBB+ | | | 829,785 | |
| | 4,000 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 5.000%, 6/01/27 – AGM Insured | No Opt. Call | | AA | | | 4,683,840 | |
| | 1,000 | | Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital Revenue Bonds, Temple University Health System Obligated Group, Series 2007B, 5.500%, 7/01/26 | 7/17 at 100.00 | | BBB– | | | 1,025,020 | |
| | 3,000 | | Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital Revenue Bonds, Temple University Health System Obligated Group, Series 2012B, 6.250%, 7/01/23 | No Opt. Call | | BBB– | | | 3,126,990 | |
| | 1,315 | | Susquehanna Area Regional Airport Authority, Pennsylvania, Airport System Revenue Bonds, Series 2012C, 3.000%, 1/01/17 | No Opt. Call | | Ba1 | | | 1,327,177 | |
| | 39,014 | | Total Pennsylvania | | | | | | 39,996,524 | |
| | | | Puerto Rico – 0.6% (0.4% of Total Investments) | | | | | | | |
| | 3,500 | | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005C, 5.500%, 7/01/27 – AMBAC Insured | No Opt. Call | | Ca | | | 3,697,750 | |
| | | | Rhode Island – 1.0% (0.8% of Total Investments) | | | | | | | |
| | 6,000 | | Rhode Island Health & Educational Building Corporation, Public Schools Financing Program Revenue Bonds, Pooled Series 2009E, 6.000%, 5/15/29 – AGC Insured | 5/19 at 100.00 | | A3 | | | 6,599,160 | |
| | | | South Carolina – 1.3% (1.0% of Total Investments) | | | | | | | |
| | 1,450 | | South Carolina Jobs-Economic Development Authority, Economic Development Revenue Bonds, Palmetto Scholars Academy Project, Series 2015A, 5.125%, 8/15/35 | 2/25 at 100.00 | | BB | | | 1,491,948 | |
| | | | South Carolina Jobs-Economic Development Authority, Hospital Revenue Bonds, Bon Secours Health System Obligated Group, Tender Option Bond Trust 1141: | | | | | | | |
| �� | 1,500 | | 19.416%, 11/01/27 (IF) (5) | 11/22 at 100.00 | | A2 | | | 2,805,675 | |
| | 1,010 | | 19.398%, 11/01/28 (IF) (5) | 11/22 at 100.00 | | A2 | | | 1,869,611 | |
| | 1,255 | | 19.416%, 11/01/29 (IF) (5) | 11/22 at 100.00 | | A2 | | | 2,307,129 | |
| | 5,215 | | Total South Carolina | | | | | | 8,474,363 | |
| | | | Tennessee – 1.5% (1.2% of Total Investments) | | | | | | | |
| | 2,000 | | Clarksville Natural Gas Acquisition Corporation, Tennessee, Natural Gas Revenue Bonds, Series 2006, 5.000%, 12/15/21 – SYNCORA GTY Insured | No Opt. Call | | A | | | 2,305,160 | |
| | 1,935 | | Knox County Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2012A, 5.000%, 1/01/26 | No Opt. Call | | A | | | 2,286,783 | |
| | 4,280 | | Knox County Health, Educational, and Housing Facilities Board, Tennessee, Revenue Bonds, Provision Center for Proton Therapy Project, Series 2014, 5.250%, 5/01/25 | 11/24 at 100.00 | | N/R | | | 4,356,355 | |
| | 1,000 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006C, 5.000%, 2/01/23 | No Opt. Call | | A | | | 1,183,600 | |
| | 9,215 | | Total Tennessee | | | | | | 10,131,898 | |
| | | | Texas – 8.8% (7.1% of Total Investments) | | | | | | | |
| | 275 | | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, First Tier Series 2006A, 5.000%, 1/01/34 – SYNCORA GTY Insured | 1/17 at 100.00 | | BBB– | | | 278,850 | |
| | 7,000 | | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, Second Tier Series 2006B, 5.750%, 1/01/24 | 1/17 at 100.00 | | BB | | | 7,112,140 | |
| | | | Austin, Texas, Estancia Hill Country Public Improvement District, Area 1 Special Assessment Revenue Bonds, Series 2013: | | | | | | | |
| | 1,300 | | 4.500%, 11/01/18 | No Opt. Call | | N/R | | | 1,343,277 | |
| | 1,500 | | 6.000%, 11/01/28 | 11/23 at 100.00 | | N/R | | | 1,628,940 | |
| | 610 | | Bexar County, Texas, Health Facilities Development Corporation Revenue Bonds, Army Retirement Residence, Series 2007, 5.000%, 7/01/27 | 7/17 at 100.00 | | BBB | | | 625,921 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Texas (continued) | | | | | | | |
| $ | 2,095 | | Board of Managers, Joint Guadalupe County – Seguin City Hospital, Texas, FHA Insured Hospital Mortgage Revenue Bonds, Guadalupe Regional Medical Center Project, Series 2007, 5.500%, 8/15/36 (Pre-refunded 8/15/18) | 8/18 at 100.00 | | Ba1 (4) | | $ | 2,299,640 | |
| | 1,000 | | Clifton Higher Education Finance Corporation, Texas, Education Revenue Bonds, Idea Public Schools, Series 2012, 3.750%, 8/15/22 | No Opt. Call | | BBB | | | 1,069,710 | |
| | 2,000 | | Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Tender Option Bond Trust 3307, 22.246%, 12/01/26 – AMBAC Insured (IF) (5) | No Opt. Call | | AA+ | | | 5,443,500 | |
| | 2,000 | | Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1995, 4.875%, 5/01/25 (Alternative Minimum Tax) | 10/22 at 100.00 | | BB | | | 2,127,680 | |
| | | | Harris County Cultural Education Facilities Finance Corporation, Texas, Revenue Refunding Bonds, Young Men's Christian Association of the Greater Houston Area, Series 2013A: | | | | | | | |
| | 330 | | 5.000%, 6/01/18 | No Opt. Call | | Baa3 | | | 351,315 | |
| | 1,500 | | 5.000%, 6/01/20 | No Opt. Call | | Baa3 | | | 1,659,870 | |
| | 535 | | 5.000%, 6/01/21 | No Opt. Call | | Baa3 | | | 599,500 | |
| | 855 | | 5.000%, 6/01/22 | No Opt. Call | | Baa3 | | | 971,502 | |
| | 915 | | 5.000%, 6/01/23 | No Opt. Call | | Baa3 | | | 1,052,881 | |
| | 1,500 | | Health Facilities Development District of Central Texas, Revenue Bonds, Legacy at Willow Bend Project, Series 2006A, 5.625%, 11/01/26 | 11/16 at 100.00 | | N/R | | | 1,516,125 | |
| | 1,250 | | Houston, Texas, Airport System Special Facilities Revenue Bonds, United Airlines Inc. Terminal Improvement Project, Refunding Series 2015C, 5.000%, 7/15/20 (Alternative Minimum Tax) | No Opt. Call | | BB– | | | 1,384,837 | |
| | 200 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, Southwest Airlines Company – Love Field Modernization Program Project, Series 2012, 5.000%, 11/01/21 (Alternative Minimum Tax) | No Opt. Call | | Baa1 | | | 230,654 | |
| | 250 | | Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, Series 2016B, 5.750%, 10/01/31 (Alternative Minimum Tax) | 10/18 at 103.00 | | BB– | | | 264,252 | |
| | 1,000 | | New Hope Cultural Education Facilities Finance Corporation, Texas, Student Housing Revenue Bonds, CHF-Collegiate Housing Corpus Christi I, L.L.C.-Texas A&M University-Corpus Christi Project, Series 2014A, 5.000%, 4/01/34 | 4/24 at 100.00 | | BBB– | | | 1,090,250 | |
| | 1,500 | | Red River Authority, Texas, Pollution Control Revenue Bonds, AEP Texas North Company, Public Service Company of Oklahoma and AEP Texas Central Company Oklaunion Project, Refunding Series 2007, 4.450%, 6/01/20 – NPFG Insured | No Opt. Call | | AA– | | | 1,641,390 | |
| | 2,680 | | San Antonio Public Facilities Corporation, Texas, Lease Revenue Bonds, Convention Center Refinancing & Expansion Project, Tender Option Bond Trust 2015-XF0125, 20.494%, 9/15/20 (IF) (5) | No Opt. Call | | AA+ | | | 4,965,343 | |
| | | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White Healthcare Project, Tender Option Bond Trust 1149: | | | | | | | |
| | 100 | | 20.603%, 8/15/22 (IF) (5) | No Opt. Call | | AA– | | | 198,130 | |
| | 155 | | 20.414%, 8/15/24 (IF) (5) | 8/23 at 100.00 | | AA– | | | 319,328 | |
| | 200 | | 20.603%, 8/15/26 (IF) (5) | 8/23 at 100.00 | | AA– | | | 395,750 | |
| | 170 | | 20.377%, 8/15/27 (IF) (5) | 8/23 at 100.00 | | AA– | | | 329,418 | |
| | | | Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, Senior Lien Series 2008D: | | | | | | | |
| | 485 | | 5.625%, 12/15/17 | No Opt. Call | | BBB+ | | | 504,996 | |
| | 9,320 | | 6.250%, 12/15/26 | No Opt. Call | | BBB+ | | | 11,722,044 | |
| | 5,000 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 2012, 5.000%, 12/15/22 | No Opt. Call | | A3 | | | 5,901,650 | |
| | 1,190 | | Westlake, Texas, Special Assessment Revenue Bonds, Solana Public Improvement District, Series 2015, 6.125%, 9/01/35 | 9/25 at 100.00 | | N/R | | | 1,218,643 | |
| | 46,915 | | Total Texas | | | | | | 58,247,536 | |
| | | | Utah – 1.0% (0.8% of Total Investments) | | | | | | | |
| | 6,000 | | Salt Lake County, Utah, Research Facility Revenue Bonds, Huntsman Cancer Foundation, Series 2013A-1, 5.000%, 12/01/33 (Mandatory put 12/15/20) | 12/18 at 100.00 | | N/R | | | 6,347,400 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Vermont – 0.6% (0.5% of Total Investments) | | | | | | | |
| $ | 3,600 | | Vermont Economic Development Authority, Solid Waste Disposal Revenue Bonds, Casella Waste Systems, Inc. Project, Series 2013, 4.750%, 4/01/36 (Mandatory put 4/02/18) (Alternative Minimum Tax) | No Opt. Call | | BB– | | $ | 3,727,476 | |
| | | | Virgin Islands – 1.7% (1.4% of Total Investments) | | | | | | | |
| | 3,000 | | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Working Capital Series 2014A, 5.000%, 10/01/29 | 10/24 at 100.00 | | BBB+ | | | 3,334,140 | |
| | 640 | | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Senior Lien Series 2010A, 5.000%, 10/01/25 | 10/20 at 100.00 | | BBB | | | 714,221 | |
| | 1,515 | | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Senior Lien, Refunding Series 2013B, 5.000%, 10/01/24 – AGM Insured | No Opt. Call | | AA | | | 1,773,474 | |
| | 5,000 | | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan
Note – Diageo Project, Series 2009A, 6.750%, 10/01/37 | 10/19 at 100.00 | | Baa3 | | | 5,640,300 | |
| | 10,155 | | Total Virgin Islands | | | | | | 11,462,135 | |
| | | | Virginia – 2.3% (1.9% of Total Investments) | | | | | | | |
| | | | Dulles Town Center Community Development Authority, Loudon County, Virginia Special Assessment Refunding Bonds, Dulles Town Center Project, Series 2012: | | | | | | | |
| | 1,265 | | 4.000%, 3/01/20 | No Opt. Call | | N/R | | | 1,319,686 | |
| | 1,000 | | 5.000%, 3/01/21 | No Opt. Call | | N/R | | | 1,096,450 | |
| | 1,410 | | 5.000%, 3/01/22 | No Opt. Call | | N/R | | | 1,558,078 | |
| | | | Fairfax County Industrial Development Authority, Virginia, Healthcare Revenue Bonds, Inova Health System, Tender Option Bond Trust 3309: | | | | | | | |
| | 1,800 | | 20.878%, 5/15/20 (IF) (5) | No Opt. Call | | AA+ | | | 3,419,820 | |
| | 120 | | 20.878%, 5/15/20 (IF) (5) | No Opt. Call | | AA+ | | | 225,564 | |
| | 400 | | 15.928%, 5/15/20 (IF) (5) | No Opt. Call | | AA+ | | | 595,840 | |
| | 1,598 | | Peninsula Town Center Community Development Authority, Virginia, Special Obligation Bonds, Series 2007, 5.800%, 9/01/17 | No Opt. Call | | N/R | | | 1,677,213 | |
| | 1,000 | | Roanoke Economic Development Authority, Virginia, Residential Care Facility Mortgage Revenue Refunding Bonds, Virginia Lutheran Homes Brandon Oaks Project, Series 2012, 5.000%, 12/01/32 | No Opt. Call | | N/R | | | 1,022,820 | |
| | | | Virginia Gateway Community Development Authority, Prince William County, Virginia, Special Assessment Refunding Bonds, Series 2012: | | | | | | | |
| | 695 | | 5.000%, 3/01/25 | No Opt. Call | | N/R | | | 738,882 | |
| | 340 | | 4.500%, 3/01/29 | No Opt. Call | | N/R | | | 344,845 | |
| | 1,505 | | 5.000%, 3/01/30 | No Opt. Call | | N/R | | | 1,584,043 | |
| | 1,410 | | Virginia Small Business Financing Authority, Revenue Bonds, Hampton University, Refunding Series 2014, 5.000%, 10/01/23 | No Opt. Call | | A | | | 1,706,509 | |
| | 12,543 | | Total Virginia | | | | | | 15,289,750 | |
| | | | Washington – 2.4% (2.0% of Total Investments) | | | | | | | |
| | 485 | | Tacoma Consolidated Local Improvement District 65, Washington, Special Assessment Bonds, Series 2013, 5.750%, 4/01/43 | 4/17 at 100.00 | | N/R | | | 486,440 | |
| | 2,000 | | Washington State Health Care Facilities Authority, Revenue Bonds, Group Health Cooperative of Puget Sound, Series 2006, 5.000%, 12/01/24 – RAAI Insured | 12/16 at 100.00 | | AA | | | 2,042,260 | |
| | | | Washington State Housing Finance Commission, Non-Profit Housing Revenue Bonds, Mirabella Project, Series 2012A: | | | | | | | |
| | 3,800 | | 6.000%, 10/01/22 | No Opt. Call | | N/R | | | 4,227,994 | |
| | 2,135 | | 6.500%, 10/01/32 | No Opt. Call | | N/R | | | 2,331,036 | |
| | | | Washington State Housing Finance Commission, Non-Profit Revenue Bonds, Emerald Heights Project, Refunding 2013: | | | | | | | |
| | 1,000 | | 5.000%, 7/01/21 | No Opt. Call | | A– | | | 1,132,150 | |
| | 1,000 | | 5.000%, 7/01/23 | No Opt. Call | | A– | | | 1,163,480 | |
| | 5,000 | | Washington State Health Care Facilities Authority, Tender Option Bond Trust, Series 2015-XF1017, 3.059%, 1/01/35 (Mandatory put 1/02/25) (IF) (5) | 7/24 at 100.00 | | A– | | | 4,834,000 | |
| | 15,420 | | Total Washington | | | | | | 16,217,360 | |
| NID | Nuveen Intermediate Duration Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Wisconsin – 2.5% (2.0% of Total Investments) | | | | | | | |
| $ | 1,740 | | Green Bay Redevelopment Authority, Wisconsin, Industrial Development Revenue Bonds, Fort James Project, Series 1999, 5.600%, 5/01/19 (Alternative Minimum Tax) | No Opt. Call | | N/R | | $ | 1,897,957 | |
| | | | Oneida Tribe of Indians of Wisconsin, Retail Sales Revenue Bonds, Series 2011-144A: | | | | | | | |
| | 3,915 | | 5.500%, 2/01/21 | No Opt. Call | | AA– | | | 4,342,870 | |
| | 350 | | 6.500%, 2/01/31 | 2/19 at 102.00 | | AA– | | | 399,049 | |
| | 415 | | Platteville Redevelopment Authority, Wisconsin, Revenue Bonds, University of Wisconsin – Platteville Real Estate Foundation Project, Series 2012A, 5.000%, 7/01/42 | 7/22 at 100.00 | | BBB– | | | 435,866 | |
| | | | Public Finance Authority of Wisconsin, Educational Facility Revenue Bonds, Cottonwood Classical Preparatory School in Albuquerque, New Mexico, Series 2012A: | | | | | | | |
| | 1,200 | | 5.250%, 12/01/22 | No Opt. Call | | N/R | | | 1,245,444 | |
| | 1,610 | | 6.000%, 12/01/32 | No Opt. Call | | N/R | | | 1,673,981 | |
| | 675 | | Public Finance Authority of Wisconsin, Revenue Bonds, Roseman University of Health Sciences, Series 2012, 5.000%, 4/01/22 | No Opt. Call | | BB– | | | 715,270 | |
| | 3,130 | | Public Finance Authority of Wisconsin, Senior Airport Facilities Revenue and Refunding Bonds, TrIPS Obligated Group, Series 2012B, 5.000%, 7/01/22 (Alternative Minimum Tax) | No Opt. Call | | BBB | | | 3,486,695 | |
| | 1,115 | | Public Finance Authority of Wisconsin, Student Housing Revenue Bonds, Collegiate Housing Foundation – Cullowhee LLC – Western California University Project, Series 2015A, 5.000%, 7/01/30 | 7/25 at 100.00 | | BBB– | | | 1,212,462 | |
| | | | University of Wisconsin Hospitals and Clinics Authority, Revenue Bonds, Tender Option Bond Trust 2015-XF0127: | | | | | | | |
| | 50 | | 19.208%, 4/01/20 (IF) (5) | No Opt. Call | | A+ | | | 97,676 | |
| | 100 | | 19.957%, 10/01/20 (IF) (5) | No Opt. Call | | A+ | | | 210,530 | |
| | 185 | | 19.603%, 10/01/20 (IF) (5) | No Opt. Call | | A+ | | | 382,317 | |
| | 100 | | 19.957%, 10/01/20 (IF) (5) | No Opt. Call | | A+ | | | 202,890 | |
| | 250 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Beloit Health System, Inc., Series 2010B, 5.000%, 4/01/30 | 4/20 at 100.00 | | A– | | | 271,225 | |
| | 14,835 | | Total Wisconsin | | | | | | 16,574,232 | |
| | | | Wyoming – 0.1% (0.1% of Total Investments) | | | | | | | |
| | 595 | | Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative Minimum Tax) | 8/16 at 100.00 | | BBB | | | 597,231 | |
| $ | 759,618 | | Total Long-Term Investments (cost $797,817,477) | | | | | | 825,111,552 | |
| | | | Variable Rate MuniFund Term Preferred Shares, at Liquidation Preference (26.3)% (7) | | | | | | (175,000,000 | ) |
| | | | Other Assets Less Liabilities – 2.3% (8) | | | | | | 15,447,078 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | | $ | 665,558,630 | |
Investments in Derivatives as of May 31, 2016
Interest Rate Swaps
| | | | | | | | | | | | | | | | Optional | | | | | Variation | | | | |
| | | | | | Fund | | | | | | Fixed Rate | | | | Early | | | | | Margin | | | Unrealized | |
| | | | Notional | | Pay/Receive | | Floating Rate | | Fixed Rate | | Payment | | Effective | | Termination | | Termination | | | Receivable/ | | | Appreciation | |
| Counterparty | | | Amount | | Floating Rate | | Index | | (Annualized) | | Frequency | | Date (9) | | Date | | Date | | | Payable | | | (Depreciation) | |
| JPMorgan Chase | | $ | 6,700,000 | | Receive | | 3-Month USD LIBOR-ICE | | 2.857% | | Semi-Annually | | 7/13/16 | | 1/05/25 | | 7/13/26 | | $ | 10,019 | | $ | (718,428) | |
| Bank N.A.* | | | | | | | | | | | | | | | | | | | | | | | | |
| JPMorgan Chase | | | 21,400,000 | | Receive | | Weekly USD-SIFMA | | 1.985 | | Quarterly | | 10/3/16 | | 11/03/16 | | 10/3/28 | | | — | | | (1,253,373) | |
| Bank N.A. | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 28,100,000 | | | | | | | | | | | | | | | | $ | 10,019 | | $ | (1,971,801) | |
* Citigroup Global Markets Inc. is the clearing broker for this transaction.
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (6) | 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. |
| (7) | Variable Rate MuniFund Term Preferred Shares, at Liquidation Preference as a percentage of Total Investments is 21.2%. |
| (8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter ("OTC") derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of OTC-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
| (9) | Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| 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. |
| USD LIBOR-ICE | United States Dollar-London Inter-Bank Offered Rate Intercontinental Exchange |
| USD-SIFMA | United States Dollar-Securities Industry and Financial Markets Association |
See accompanying notes to financial statements.
| NIQ | | |
| | Nuveen Intermediate Duration Quality Municipal Term Fund | |
| | Portfolio of Investments | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | LONG-TERM INVESTMENTS – 126.5% (98.9% of Total Investments) | | | | | | | |
| | | | MUNICIPAL BONDS – 126.5% (98.9% of Total Investments) | | | | | | | |
| | | | Alabama – 3.4% (2.7% of Total Investments) | | | | | | | |
| $ | 2,000 | | Alabama Federal Aid Highway Finance Authority, Federal Highway Grant Anticipation Revenue Bonds, Tender Option Bond Trust 2013-2W, 20.893%, 9/01/26 (IF) (4) | 9/22 at 100.00 | | AA | | $ | 3,865,900 | |
| | 2,500 | | Jefferson County, Alabama, General Obligation Refunding Warrants, Series 2003A, 5.000%, 4/01/22 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 2,501,425 | |
| | 4,500 | | Total Alabama | | | | | | 6,367,325 | |
| | | | Arizona – 2.1% (1.6% of Total Investments) | | | | | | | |
| | 405 | | Arizona Health Facilities Authority, Health Care Facilities Revenue Bonds, The Beatitudes Campus Project, Series 2006, 5.100%, 10/01/22 | 10/16 at 100.00 | | N/R | | | 406,409 | |
| | | | Arizona Health Facilities Authority, Hospital Revenue Bonds, Phoenix Children's Hospital, Series 2013D: | | | | | | | |
| | 965 | | 5.000%, 2/01/24 | 2/23 at 100.00 | | BBB+ | | | 1,145,368 | |
| | 1,065 | | 5.000%, 2/01/26 | 2/23 at 100.00 | | BBB+ | | | 1,238,765 | |
| | 1,000 | | University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 5.000%, 7/01/19 (ETM) | No Opt. Call | | N/R (5) | | | 1,122,280 | |
| | 3,435 | | Total Arizona | | | | | | 3,912,822 | |
| | | | California – 14.8% (11.6% of Total Investments) | | | | | | | |
| | 3,000 | | Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Senior Lien Series 2013A, 5.000%, 10/01/27 – AGM Insured | 10/23 at 100.00 | | AA | | | 3,660,720 | |
| | | | California Municipal Finance Authority, Revenue Bonds, Biola University, Series 2013: | | | | | | | |
| | 560 | | 5.000%, 10/01/19 | No Opt. Call | | Baa1 | | | 620,295 | |
| | 415 | | 5.000%, 10/01/21 | No Opt. Call | | Baa1 | | | 477,893 | |
| | 1,930 | | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A, 5.250%, 12/01/34 | 12/24 at 100.00 | | BB+ | | | 2,182,541 | |
| | 3,000 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33 | 6/17 at 100.00 | | B– | | | 3,019,680 | |
| | | | Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A: | | | | | | | |
| | 915 | | 5.500%, 9/01/17 – SYNCORA GTY Insured | No Opt. Call | | N/R | | | 958,764 | |
| | 660 | | 5.500%, 9/01/27 – SYNCORA GTY Insured | No Opt. Call | | N/R | | | 694,247 | |
| | 1,265 | | Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Rancho Vallecitos Mobile Home Park, Series 2013, 4.500%, 4/15/23 | No Opt. Call | | A– | | | 1,411,120 | |
| | | | Inland Empire Tobacco Securitization Authority, California, Tobacco Settlement Asset-Backed Bonds, Series 2007: | | | | | | | |
| | 1,290 | | 5.000%, 6/01/21 | 6/17 at 100.00 | | CC | | | 1,300,423 | |
| | 1,030 | | 4.625%, 6/01/21 | 6/17 at 100.00 | | CC | | | 1,035,552 | |
| | | | Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 31 Eastvale Area, Series 2013: | | | | | | | |
| | 150 | | 4.000%, 9/01/25 | 9/22 at 100.00 | | N/R | | | 164,334 | |
| | 305 | | 4.000%, 9/01/26 | 9/22 at 100.00 | | N/R | | | 332,291 | |
| | 250 | | 4.000%, 9/01/27 | 9/22 at 100.00 | | N/R | | | 270,610 | |
| | 670 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 5.250%, 11/01/21 | 11/20 at 100.00 | | Ba1 | | | 727,861 | |
| | 1,800 | | Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A, 5.000%, 9/01/22 | No Opt. Call | | N/R | | | 2,060,676 | |
| | 185 | | Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series 2011A, 0.000%, 10/01/26 (6) | No Opt. Call | | A | | | 177,419 | |
| | 100 | | San Bernardino County Financing Authority, California, Revenue Bonds, Courthouse Facilities Project, Series 2007, 5.100%, 6/01/17 | No Opt. Call | | N/R | | | 101,298 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | California (continued) | | | | | | | |
| $ | 340 | | San Diego, California, Community Facilities District 3 Liberty Station Special Tax Refunding Bonds Series 2013, 5.000%, 9/01/17 | No Opt. Call | | N/R | | $ | 356,861 | |
| | 2,000 | | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2016A, 5.000%, 5/01/26 | No Opt. Call | | A+ | | | 2,581,020 | |
| | 1,080 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/17 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 1,084,190 | |
| | 955 | | Vernon, California, Electric System Revenue Bonds, Series 2009A, 5.125%, 8/01/21 (Pre-refunded 8/01/19) | 8/19 at 100.00 | | N/R (5) | | | 1,041,867 | |
| | 2,160 | | Vernon, California, Electric System Revenue Bonds, Series 2009A, 5.125%, 8/01/21 | 8/19 at 100.00 | | A– | | | 2,408,789 | |
| | 925 | | Washington Township Health Care District, California, Revenue Bonds, Series 2009A, 6.000%, 7/01/29 | 7/19 at 100.00 | | Baa1 | | | 1,042,632 | |
| | 24,985 | | Total California | | | | | | 27,711,083 | |
| | | | Colorado – 3.8% (3.0% of Total Investments) | | | | | | | |
| | | | Colorado Educational and Cultural Facilities Authority, Charter School Refunding Revenue Bonds, Pinnacle Charter School, Inc. K-8 Facility Project, Series 2013: | | | | | | | |
| | 280 | | 4.000%, 6/01/18 | No Opt. Call | | A | | | 293,381 | |
| | 310 | | 4.000%, 6/01/20 | No Opt. Call | | A | | | 336,142 | |
| | 250 | | 5.000%, 6/01/21 | No Opt. Call | | A | | | 286,608 | |
| | | | Colorado State Board of Governors, Colorado State University Auxiliary Enterprise System Revenue Bonds, Tender Option Bond Trust 3316: | | | | | | | |
| | 100 | | 20.878%, 9/01/22 (IF) (4) | No Opt. Call | | Aa2 | | | 225,865 | |
| | 300 | | 20.878%, 3/01/23 (IF) (4) | No Opt. Call | | Aa2 | | | 697,350 | |
| | 430 | | 20.831%, 3/01/24 (IF) (4) | No Opt. Call | | Aa2 | | | 1,013,200 | |
| | 725 | | 20.878%, 3/01/25 (IF) (4) | No Opt. Call | | Aa2 | | | 1,699,110 | |
| | 200 | | 20.878%, 9/01/25 (IF) (4) | No Opt. Call | | Aa2 | | | 468,350 | |
| | 200 | | Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center Hotel, Senior Lien Series 2006, 4.500%, 12/01/25 – SYNCORA GTY Insured | 11/16 at 100.00 | | BBB– | | | 201,674 | |
| | 350 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B, 0.000%, 9/01/21 – NPFG Insured | No Opt. Call | | AA– | | | 314,482 | |
| | 1,535 | | Lincoln Park Metropolitan District, Douglas County, Colorado, General Obligation Refunding and Improvement Bonds, Series 2008, 5.625%, 12/01/20 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | N/R (5) | | | 1,643,970 | |
| | 4,680 | | Total Colorado | | | | | | 7,180,132 | |
| | | | Florida – 9.0% (7.0% of Total Investments) | | | | | | | |
| | | | Atlantic Beach, Florida, Healthcare Facilities Revenue Refunding Bonds, Fleet Landing Project, Series 2013A: | | | | | | | |
| | 420 | | 5.000%, 11/15/20 | No Opt. Call | | BBB | | | 470,879 | |
| | 150 | | 5.000%, 11/15/23 | No Opt. Call | | BBB | | | 175,655 | |
| | 515 | | Belmont Community Development District, Florida, Capital Improvement Revenue Bonds, Phase 1 Project, Series 2013A, 5.500%, 11/01/23 | No Opt. Call | | N/R | | | 558,214 | |
| | 1,270 | | Broward County, Florida, Fuel System Revenue Bonds, Fort Lauderdale Fuel Facilities LLC Project, Series 2013A, 5.000%, 4/01/23 – AGM Insured (Alternative Minimum Tax) | No Opt. Call | | AA | | | 1,510,868 | |
| | 455 | | Capital Trust Agency, Florida, Fixed Rate Air Cargo Revenue Refunding Bonds, Aero Miami FX, LLC Project, Series 2010A, 5.350%, 7/01/29 | 7/20 at 100.00 | | Baa3 | | | 497,037 | |
| | 2,000 | | Collier County Educational Facilities Authority, Florida, Revenue Bonds, Ave Maria University, Refunding Series 2013A, 4.500%, 6/01/23 | No Opt. Call | | BBB– | | | 2,146,200 | |
| | 1,000 | | Florida Mid-Bay Bridge Authority, Revenue Bonds, 1st Senior Lien Series 2015A, 5.000%, 10/01/23 | No Opt. Call | | BBB+ | | | 1,180,480 | |
| | 2,960 | | Florida Municipal Power Agency, Revenue Bonds, Saint Lucie Project, Refunding Series 2012A, 5.000%, 10/01/26 | No Opt. Call | | A2 | | | 3,507,452 | |
| | | | Martin County Industrial Development Authority, Florida, Industrial Development Revenue Refunding Bonds, Indiantown Cogeneration LP, Series 2013: | | | | | | | |
| | 2,535 | | 3.950%, 12/15/21 (Alternative Minimum Tax) | 6/20 at 100.00 | | Ba1 | | | 2,672,853 | |
| | 500 | | 4.200%, 12/15/25 (Alternative Minimum Tax) | 6/20 at 100.00 | | Ba1 | | | 521,400 | |
| NIQ | Nuveen Intermediate Duration Quality Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Florida (continued) | | | | | | | |
| $ | 1,400 | | Palm Beach County Health Facilities Authority, Florida, Revenue Bonds, Jupiter Medical Center, Series 2013A, 5.000%, 11/01/22 | No Opt. Call | | BBB+ | | $ | 1,618,694 | |
| | 250 | | Seminole Tribe of Florida, Special Obligation Bonds, Series 2007A, 144A, 5.750%, 10/01/22 | 10/17 at 100.00 | | BBB– | | | 260,613 | |
| | 305 | | Southeast Overtown/Park West Community Redevelopment Agency, Florida, Tax Increment Revenue Bonds, Series 2014A-1, 5.000%, 3/01/24 | No Opt. Call | | BBB+ | | | 353,712 | |
| | 1,370 | | Verandah West Community Development District, Florida, Capital Improvement Revenue Bonds, Refunding Series 2013, 4.000%, 5/01/23 | No Opt. Call | | N/R | | | 1,388,098 | |
| | 15,130 | | Total Florida | | | | | | 16,862,155 | |
| | | | Georgia – 2.1% (1.6% of Total Investments) | | | | | | | |
| | 1,025 | | Atlanta, Georgia, Tax Allocation Bonds, Perry Bolton Project Series 2014, 4.000%, 7/01/22 | No Opt. Call | | A– | | | 1,160,392 | |
| | 2,000 | | East Point Building Authority, Georgia, Revenue Bonds, Water & Sewer Project Series 2006A, 5.000%, 2/01/34 – SYNCORA GTY Insured | 8/16 at 100.00 | | N/R | | | 2,002,780 | |
| | 890 | | Liberty County Industrial Authority, Georgia, Revenue Bonds, Series 2012A-2, 3.930%, 7/01/26 | 8/16 at 100.00 | | N/R | | | 789,923 | |
| | 3,915 | | Total Georgia | | | | | | 3,953,095 | |
| | | | Idaho – 0.5% (0.4% of Total Investments) | | | | | | | |
| | 1,000 | | Madison County, Idaho, Hospital Revenue Certificates of Participation, Madison Memorial Hospital, Series 2006, 5.250%, 9/01/20 | 9/16 at 100.00 | | BB+ | | | 1,006,530 | |
| | | | Illinois – 12.4% (9.7% of Total Investments) | | | | | | | |
| | 2,500 | | Cook County, Illinois, General Obligation Bonds, Tender Option Bond Trust 2015-XF1007, 15.865%, 11/15/25 (IF) (4) | 11/22 at 100.00 | | AA– | | | 3,699,300 | |
| | 990 | | Hillside, Cook County, Illinois, Tax Increment Revenue Bonds, Mannheim Redevelopment Project, Senior Lien Series 2008, 6.550%, 1/01/20 | 1/18 at 102.00 | | N/R | | | 1,054,974 | |
| | 1,000 | | Illinois Finance Authority, Charter School Revenue Bonds, Chicago Charter School Foundation, Series 2007, 5.000%, 12/01/26 | 12/16 at 100.00 | | BBB | | | 1,009,450 | |
| | 1,385 | | Illinois Finance Authority, Revenue Bonds, Friendship Village of Schaumburg, Series 2005A, 5.375%, 2/15/25 | 8/16 at 100.00 | | BB– | | | 1,385,623 | |
| | 2,680 | | Illinois Finance Authority, Revenue Bonds, Illinois Institute of Technology, Refunding Series 2006A, 5.000%, 4/01/24 | 8/16 at 100.00 | | Baa3 | | | 2,681,688 | |
| | 4,000 | | Illinois Municipal Electric Agency, Power Supply System Revenue Bonds, Refunding Series 2015A, 5.000%, 2/01/27 | No Opt. Call | | A1 | | | 4,882,320 | |
| | 5,000 | | Illinois State, General Obligation Bonds, Series 2013, 5.000%, 7/01/23 | No Opt. Call | | A– | | | 5,615,251 | |
| | 1,790 | | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Refunding Senior Lien Series 2014A, 5.000%, 12/01/19 | No Opt. Call | | AA– | | | 2,025,743 | |
| | 1,000 | | Southwestern Illinois Development Authority, Local Government Revenue Bonds, Edwardsville Community Unit School District 7 Project, Series 2007, 0.000%, 12/01/22 – AGM Insured | No Opt. Call | | AA | | | 850,550 | |
| | 20,345 | | Total Illinois | | | | | | 23,204,899 | |
| | | | Indiana – 2.3% (1.8% of Total Investments) | | | | | | | |
| | 1,180 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, 21st Century Charter School Project, Series 2013A, 6.000%, 3/01/33 | 3/23 at 100.00 | | B+ | | | 1,174,938 | |
| | 1,500 | | Indiana Finance Authority, Lease Appropriation Bonds, Stadium Project, Refunding Series 2015A, 5.000%, 2/01/25 | No Opt. Call | | AA+ | | | 1,879,410 | |
| | 1,145 | | Indiana Finance Authority, Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series 2013B, 5.000%, 1/01/19 (Alternative Minimum Tax) | 1/17 at 100.00 | | BBB+ | | | 1,171,381 | |
| | 3,825 | | Total Indiana | | | | | | 4,225,729 | |
| | | | Iowa – 2.6% (2.1% of Total Investments) | | | | | | | |
| | 1,000 | | Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A, 5.500%, 7/01/25 | 7/16 at 100.00 | | BB+ | | | 1,002,230 | |
| | 1,850 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company Project, Series 2013, 5.000%, 12/01/19 | No Opt. Call | | B+ | | | 1,909,570 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Iowa (continued) | | | | | | | |
| $ | 2,000 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 5.600%, 6/01/34 | 6/17 at 100.00 | | B+ | | $ | 2,005,940 | |
| | 4,850 | | Total Iowa | | | | | | 4,917,740 | |
| | | | Kentucky – 2.1% (1.6% of Total Investments) | | | | | | | |
| | | | Kentucky Economic Development Finance Authority, Louisville Arena Project Revenue Bonds, Louisville Arena Authority, Inc., Series 2008-A1: | | | | | | | |
| | 1,320 | | 5.750%, 12/01/28 – AGC Insured | 6/18 at 100.00 | | AA | | | 1,410,288 | |
| | 115 | | 6.000%, 12/01/33 – AGC Insured | 6/18 at 100.00 | | AA | | | 124,152 | |
| | 3,000 | | Kentucky Public Transportation Infrastructure Authority, First Tier Toll Revenue Bonds, Downtown Crossing Project, Capital Appreciation Series 2013B, 0.000%, 7/01/23 | No Opt. Call | | Baa3 | | | 2,358,600 | |
| | 4,435 | | Total Kentucky | | | | | | 3,893,040 | |
| | | | Louisiana – 0.9% (0.7% of Total Investments) | | | | | | | |
| | 500 | | Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, Westlake Chemical Corporation Project, Series 2007, 6.750%, 11/01/32 | 11/17 at 100.00 | | BBB+ | | | 540,040 | |
| | 1,000 | | New Orleans, Louisiana, Water Revenue Bonds, Refunding Series 2014, 5.000%, 12/01/22 | No Opt. Call | | A– | | | 1,188,650 | |
| | 1,500 | | Total Louisiana | | | | | | 1,728,690 | |
| | | | Maine – 2.4% (1.9% of Total Investments) | | | | | | | |
| | 1,000 | | Maine Health and Higher Educational Facilities Authority Revenue Bonds, Eastern Maine Medical Center Obligated Group Issue, Series 2013, 5.000%, 7/01/33 | 7/23 at 100.00 | | BBB | | | 1,116,940 | |
| | | | Maine Turnpike Authority, Special Obligation Bonds, Series 2014: | | | | | | | |
| | 620 | | 5.000%, 7/01/25 | No Opt. Call | | A+ | | | 761,831 | |
| | 340 | | 5.000%, 7/01/27 | No Opt. Call | | A+ | | | 412,107 | |
| | 1,850 | | 5.000%, 7/01/29 | No Opt. Call | | A+ | | | 2,222,553 | |
| | 3,810 | | Total Maine | | | | | | 4,513,431 | |
| | | | Maryland – 0.9% (0.7% of Total Investments) | | | | | | | |
| | | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Frederick Memorial Hospital Issue, Series 2012A: | | | | | | | |
| | 195 | | 5.000%, 7/01/20 | No Opt. Call | | Baa1 | | | 220,073 | |
| | 275 | | 5.000%, 7/01/22 | No Opt. Call | | Baa1 | | | 322,979 | |
| | 1,000 | | Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series 2011A, 5.000%, 9/15/22 | No Opt. Call | | AAA | | | 1,198,070 | |
| | 1,470 | | Total Maryland | | | | | | 1,741,122 | |
| | | | Massachusetts – 1.9% (1.5% of Total Investments) | | | | | | | |
| | 250 | | Massachusetts Development Finance Agency, First Mortgage Revenue Bonds, Brookhaven at Lexington Project, Series 2005A, 5.000%, 3/01/35 – RAAI Insured | 8/16 at 100.00 | | AA | | | 250,713 | |
| | 1,000 | | Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Covanta Energy Project, Series 2012A, 4.875%, 11/01/27 (Alternative Minimum Tax) | No Opt. Call | | BB+ | | | 1,005,930 | |
| | 420 | | Massachusetts Development Finance Agency, Revenue Bonds, Boston Medical Center Issue, Series 2012C, 5.000%, 7/01/29 | 7/22 at 100.00 | | BBB | | | 474,226 | |
| | | | Massachusetts Development Finance Agency, Revenue Bonds, Boston Medical Center Issue, Series 2012C: | | | | | | | |
| | 80 | | 5.000%, 7/01/29 (Pre-refunded 7/01/22) | 7/22 at 100.00 | | N/R (5) | | | 97,077 | |
| | 500 | | 5.000%, 7/01/29 (Pre-refunded 7/01/22) | 7/22 at 100.00 | | Baa2 (5) | | | 606,730 | |
| | | | Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 2001A: | | | | | | | |
| | 140 | | 5.000%, 1/01/21 – AMBAC Insured (Alternative Minimum Tax) | 8/16 at 100.00 | | N/R | | | 140,556 | |
| | 1,000 | | 5.000%, 1/01/27 – AMBAC Insured (Alternative Minimum Tax) | 7/16 at 100.00 | | N/R | | | 1,003,970 | |
| | 3,390 | | Total Massachusetts | | | | | | 3,579,202 | |
| | | | Michigan – 7.7% (6.0% of Total Investments) | | | | | | | |
| | 1,000 | | Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Tender Option Bond Trust 3308, 21.193%, 11/01/26 – AGM Insured (IF) (4) | No Opt. Call | | Aa1 | | | 2,280,800 | |
| | 62 | | Detroit, Michigan, General Obligation Bonds, Series 2005A, 5.000%, 4/01/25 – AGM Insured | 8/16 at 100.00 | | AA | | | 62,137 | |
| NIQ | Nuveen Intermediate Duration Quality Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Michigan (continued) | | | | | | | |
| | | | Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B: | | | | | | | |
| $ | 50 | | 5.000%, 7/01/33 – NPFG Insured | 7/16 at 100.00 | | AA– | | $ | 50,172 | |
| | 60 | | 5.000%, 7/01/33 – FGIC Insured | 7/16 at 100.00 | | AA– | | | 60,206 | |
| | 1,260 | | 5.000%, 7/01/36 – MBIA-NPFG Insured | 7/16 at 100.00 | | AA– | | | 1,264,334 | |
| | 5 | | Detroit, Michigan, Water Supply System Second Lien Revenue Bonds, Series 2003B, 5.000%, 7/01/34 – NPFG Insured | 8/16 at 100.00 | | AA– | | | 5,016 | |
| | 250 | | Detroit, Michigan, Water Supply System Second Lien Revenue Bonds, Series 2006A, 5.000%, 7/01/34 – AGM Insured | 7/16 at 100.00 | | AA | | | 250,858 | |
| | 290 | | Detroit, Michigan, Water Supply System Second Lien Revenue Refunding Bonds, Series 2006C, 5.000%, 7/01/33 – AGM Insured | No Opt. Call | | AA | | | 290,995 | |
| | 440 | | Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, Series 2003D. RMKTD, 5.000%, 7/01/33 – NPFG Insured | No Opt. Call | | AA– | | | 441,509 | |
| | 10 | | Detroit, Michigan, Water Supply System Senior Lien Revenue Refunding Bonds, Series 2006D, 5.000%, 7/01/32 – AGM Insured | 7/16 at 100.00 | | AA | | | 10,034 | |
| | 730 | | Flint Hospital Building Authority, Michigan, Building Authority Revenue Bonds, Hurley Medical Center, Series 2013A, 5.000%, 7/01/23 | No Opt. Call | | BBB– | | | 770,931 | |
| | 338 | | Michigan Finance Authority, Detroit, Michigan, Local Government Loan Program, Unlimited Tax General Obligation Bonds, Series 2014G-8A, 5.000%, 4/01/25 – AGM Insured | 8/16 at 100.00 | | AA | | | 338,747 | |
| | 2,020 | | Michigan Finance Authority, Hospital Revenue Bonds, Crittenton Hospital Medical Center, Refunding Series 2012A, 4.125%, 6/01/32 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | N/R (5) | | | 2,336,574 | |
| | 3,000 | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & Sewerage Department Water Supply System Local Project, Refunding Senior Loan Series 2014D-1, 5.000%, 7/01/23 – AGM Insured | No Opt. Call | | AA | | | 3,611,430 | |
| | 190 | | Michigan Finance Authority, Public School Academy Limited Obligation Revenue Bonds, Old Redford Academy Project, Series 2010A, 5.250%, 12/01/20 | No Opt. Call | | BB | | | 194,845 | |
| | 1,405 | | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Tender Option Bond Trust 2015-XF0126, 20.585%, 12/01/18 (IF) (4) | No Opt. Call | | AA– | | | 2,407,706 | |
| | 11,110 | | Total Michigan | | | | | | 14,376,294 | |
| | | | Minnesota – 1.9% (1.5% of Total Investments) | | | | | | | |
| | 550 | | Northern Municipal Power Agency, Minnesota, Electric System Revenue Bonds, Refunding Series 2016, 5.000%, 1/01/27 | 1/26 at 100.00 | | A– | | | 686,708 | |
| | 750 | | Rochester, Minnesota, Health Care Facilities Revenue Bonds, Olmsted Medical Center Project, Series 2013, 5.000%, 7/01/20 | No Opt. Call | | A– | | | 854,385 | |
| | | | Saint Paul Housing and Redevelopment Authority, Minnesota, Lease Revenue Bonds, Saint Paul Conservatory for Performing Artists Charter School Project, Series 2013A: | | | | | | | |
| | 205 | | 3.550%, 3/01/21 | No Opt. Call | | BBB– | | | 208,934 | |
| | 100 | | 3.700%, 3/01/22 | No Opt. Call | | BBB– | | | 102,651 | |
| | | | Sauk Rapids, Minnesota, Health Care and Housing Facilities Revenue Bonds, Good Shepherd Lutheran Home, Refunding Series 2013: | | | | | | | |
| | 610 | | 5.000%, 1/01/17 | No Opt. Call | | N/R | | | 620,333 | |
| | 500 | | 5.000%, 1/01/18 | No Opt. Call | | N/R | | | 520,785 | |
| | 500 | | 5.000%, 1/01/19 | No Opt. Call | | N/R | | | 530,300 | |
| | 3,215 | | Total Minnesota | | | | | | 3,524,096 | |
| | | | Mississippi – 2.6% (2.0% of Total Investments) | | | | | | | |
| | | | Mississippi Development Bank Special Obligation Bonds, Marshall County Industrial Development Authority, Mississippi Highway Construction Project, Tender Option Bond Trust 3315: | | | | | | | |
| | 800 | | 21.126%, 1/01/20 (IF) (4) | No Opt. Call | | AA– | | | 1,530,640 | |
| | 1,000 | | 21.126%, 1/01/20 (IF) (4) | No Opt. Call | | AA– | | | 1,886,950 | |
| | 200 | | 21.126%, 1/01/20 (IF) (4) | No Opt. Call | | AA– | | | 369,820 | |
| | 1,000 | | Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, South Central Regional Medical Center, Refunding & Improvement Series 2006, 5.250%, 12/01/21 | 12/16 at 100.00 | | BBB | | | 1,017,410 | |
| | 3,000 | | Total Mississippi | | | | | | 4,804,820 | |
| | | | Missouri – 2.7% (2.1% of Total Investments) | | | | | | | |
| | 425 | | Franklin County Industrial Development Authority, Missouri, Sales Tax Refunding Revenue Bonds, Phoenix Center II Community Improvement District Project, Series 2013A, 4.000%, 11/01/25 | 11/20 at 100.00 | | N/R | | | 444,134 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Missouri (continued) | | | | | | | |
| $ | 1,000 | | Kansas City Tax Increment Financing Commission, Missouri, Tax Increment Revenue Bonds, Briarcliff West Project, Series 2006A, 5.400%, 6/01/24 | 6/16 at 100.00 | | N/R | | $ | 1,001,730 | |
| | 3,000 | | Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds, Plum Point Project, Refunding Series 2014A, 5.000%, 1/01/23 | No Opt. Call | | A | | | 3,597,540 | |
| | 4,425 | | Total Missouri | | | | | | 5,043,404 | |
| | | | Nebraska – 1.8% (1.4% of Total Investments) | | | | | | | |
| | 3,000 | | Central Plains Energy Project, Nebraska, Gas Project 3 Revenue Bonds, Series 2012, 5.000%, 9/01/32 | 9/22 at 100.00 | | A | | | 3,386,910 | |
| | | | Nevada – 1.6% (1.3% of Total Investments) | | | | | | | |
| | | | Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Refunding Series 2016: | | | | | | | |
| | 1,295 | | 5.000%, 6/15/26 | No Opt. Call | | BBB+ | | | 1,578,178 | |
| | 1,210 | | 5.000%, 6/15/27 | 6/26 at 100.00 | | BBB+ | | | 1,463,193 | |
| | 2,505 | | Total Nevada | | | | | | 3,041,371 | |
| | | | New Jersey – 6.7% (5.3% of Total Investments) | | | | | | | |
| | 615 | | New Jersey Economic Development Authority, Charter School Revenue Bonds, Lady Liberty Academy Charter School Project, Series 2013A, 5.150%, 8/01/23 | No Opt. Call | | B | | | 520,075 | |
| | | | New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, Series 2012: | | | | | | | |
| | 2,000 | | 5.000%, 6/15/24 | 6/22 at 100.00 | | BBB+ | | | 2,232,820 | |
| | 1,000 | | 5.000%, 6/15/28 | No Opt. Call | | BBB+ | | | 1,094,250 | |
| | | | New Jersey Economic Development Authority, Private Activity Bonds, The Goethals Bridge Replacement Project, Series 2013: | | | | | | | |
| | 860 | | 5.000%, 1/01/21 (Alternative Minimum Tax) | No Opt. Call | | BBB | | | 977,691 | |
| | 500 | | 5.000%, 1/01/22 (Alternative Minimum Tax) | No Opt. Call | | BBB | | | 576,860 | |
| | 500 | | 5.000%, 7/01/22 (Alternative Minimum Tax) | No Opt. Call | | BBB | | | 580,595 | |
| | 620 | | 5.000%, 1/01/23 (Alternative Minimum Tax) | No Opt. Call | | BBB | | | 717,817 | |
| | 1,000 | | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Tender Option Bond Trust 1151, 3.045%, 9/01/25 (IF) (4) | 3/25 at 100.00 | | A– | | | 470,600 | |
| | 1,000 | | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999, 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | | BB– | | | 1,112,170 | |
| | 1,045 | | New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.250%, 7/01/21 | 7/18 at 100.00 | | BB+ | | | 1,105,589 | |
| | 195 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Joseph's Healthcare System Obligated Group Issue, Series 2008, 6.000%, 7/01/18 | No Opt. Call | | BBB– | | | 202,281 | |
| | 3,000 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/29 | 6/17 at 100.00 | | B | | | 3,030,570 | |
| | 12,335 | | Total New Jersey | | | | | | 12,621,318 | |
| | | | New York – 4.9% (3.8% of Total Investments) | | | | | | | |
| | 495 | | Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue Bonds, Catholic Health System, Inc. Project, Series 2015, 5.000%, 7/01/29 | 7/25 at 100.00 | | BBB+ | | | 588,129 | |
| | 500 | | Buffalo and Fort Erie Public Bridge Authority, New York, Toll Bridge System Revenue Bonds, Refunding Series 2014, 5.000%, 1/01/18 | No Opt. Call | | A+ | | | 532,315 | |
| | | | New York City Industrial Development Agency, New York, American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005: | | | | | | | |
| | 385 | | 7.500%, 8/01/16 (Alternative Minimum Tax) | No Opt. Call | | N/R | | | 389,254 | |
| | 2,000 | | 7.625%, 8/01/25 (Alternative Minimum Tax) | 8/16 at 101.00 | | N/R | | | 2,043,180 | |
| | | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn College of Aeronautics, Series 2006A: | | | | | | | |
| | 100 | | 5.000%, 12/01/16 | No Opt. Call | | BB– | | | 101,125 | |
| | 1,800 | | 5.000%, 12/01/21 | 12/16 at 100.00 | | BB– | | | 1,827,000 | |
| | 65 | | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn College of Aeronautics, Series 2006B, 5.000%, 12/01/16 | No Opt. Call | | BB– | | | 65,731 | |
| | 2,000 | | New York Convention Center Development Corporation, New York, Hotel Unit Fee Secured Revenue Bonds, Refunding Series 2015, 5.000%, 11/15/25 | No Opt. Call | | Aa3 | | | 2,548,940 | |
| NIQ | Nuveen Intermediate Duration Quality Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | New York (continued) | | | | | | | |
| $ | 1,000 | | Suffolk County Industrial Development Agency, New York, Continuing Care Retirement Community Revenue Bonds, Jefferson's Ferry Project, Series 2006, 5.000%, 11/01/28 | 11/16 at 100.00 | | BBB– | | $ | 1,010,750 | |
| | 8,345 | | Total New York | | | | | | 9,106,424 | |
| | | | North Carolina – 0.8% (0.6% of Total Investments) | | | | | | | |
| | 1,040 | | North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, Refunding Series 1993B, 6.000%, 1/01/18 – AMBAC Insured (ETM) | No Opt. Call | | AAA | | | 1,125,686 | |
| | 400 | | North Carolina Turnpike Authority, Triangle Expressway System Revenue Bonds, Series 2009A, 5.250%, 1/01/25 – AGC Insured | No Opt. Call | | AA | | | 435,840 | |
| | 1,440 | | Total North Carolina | | | | | | 1,561,526 | |
| | | | Ohio – 5.0% (3.9% of Total Investments) | | | | | | | |
| | 3,500 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2, 5.875%, 6/01/30 | 6/17 at 100.00 | | B– | | | 3,485,825 | |
| | 2,000 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19 | No Opt. Call | | BBB– | | | 2,216,880 | |
| | 1,150 | | Ohio State Treasurer, Tax-Exempt Private Activity Bonds, Portsmouth Gateway Group, LLC – Borrower, Portsmouth Bypass Project, Series 2015, 5.000%, 12/31/27 – AGM Insured (Alternative Minimum Tax) | 6/25 at 100.00 | | AA | | | 1,365,855 | |
| | 2,000 | | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008, 5.750%, 12/01/28 | 12/18 at 100.00 | | A– | | | 2,217,740 | |
| | 8,650 | | Total Ohio | | | | | | 9,286,300 | |
| | | | Oregon – 0.6% (0.5% of Total Investments) | | | | | | | |
| | 965 | | Astoria Hospital Facilities Authority, Oregon, Hospital Revenue and Refunding Bonds, Columbia Memorial Hospital, Series 2012, 5.000%, 8/01/22 | No Opt. Call | | BBB– | | | 1,109,682 | |
| | | | Pennsylvania – 4.2% (3.2% of Total Investments) | | | | | | | |
| | 90 | | East Hempfield Township Industrial Development Authority, Pennsylvania, Student Services Inc. – Student Housing Project at Millersville University, Series 2013, 4.000%, 7/01/19 | No Opt. Call | | BBB– | | | 94,835 | |
| | | | Erie Higher Education Building Authority, Pennsylvania, Revenue Bonds, Gannon University Project, Series 2013: | | | | | | | |
| | 465 | | 4.000%, 5/01/20 | No Opt. Call | | BBB | | | 508,687 | |
| | 480 | | 4.000%, 5/01/21 | No Opt. Call | | BBB | | | 532,094 | |
| | 500 | | 4.000%, 5/01/22 | No Opt. Call | | BBB | | | 559,485 | |
| | 520 | | 4.000%, 5/01/23 | No Opt. Call | | BBB | | | 588,177 | |
| | 2,190 | | Erie Sewer Authority, Erie County, Pennsylvania, Sewer Revenue Bonds, Series 2012A, 5.000%, 6/01/21 – AGM Insured | No Opt. Call | | AA | | | 2,557,329 | |
| | 1,700 | | Pennsylvania Economic Development Financing Authority, Private Activity Revenue Bonds, Pennsylvania Rapid Bridge Replacement Project, Series 2015, 5.000%, 6/30/28 (Alternative Minimum Tax) | 6/26 at 100.00 | | BBB | | | 2,006,918 | |
| | | | Southcentral Pennsylvania General Authority, Revenue Bonds, Hanover Hospital Inc., Series 2013: | | | | | | | |
| | 370 | | 5.000%, 12/01/20 | No Opt. Call | | BBB | | | 419,957 | |
| | 435 | | 5.000%, 12/01/21 | No Opt. Call | | BBB | | | 500,524 | |
| | 6,750 | | Total Pennsylvania | | | | | | 7,768,006 | |
| | | | Rhode Island – 1.8% (1.4% of Total Investments) | | | | | | | |
| | 3,000 | | Rhode Island Health & Educational Building Corporation, Public Schools Financing Program Revenue Bonds, Pooled Series 2009E, 6.000%, 5/15/29 – AGC Insured | 5/19 at 100.00 | | A3 | | | 3,299,580 | |
| | | | South Carolina – 1.8% (1.4% of Total Investments) | | | | | | | |
| | 1,000 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 2010-A2, 5.000%, 1/01/18 | No Opt. Call | | A– | | | 1,063,650 | |
| | 2,000 | | South Carolina Public Service Authority, Santee Cooper Revenue Obligations, Refunding Series 2014B, 5.000%, 12/01/31 | 6/24 at 100.00 | | AA– | | | 2,386,080 | |
| | 3,000 | | Total South Carolina | | | | | | 3,449,730 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Tennessee – 6.2% (4.9% of Total Investments) | | | | | | | |
| | | | Knox County Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2012A: | | | | | | | |
| $ | 1,440 | | 5.000%, 1/01/25 | No Opt. Call | | A | | $ | 1,713,528 | |
| | 2,170 | | 5.000%, 1/01/26 | No Opt. Call | | A | | | 2,564,506 | |
| | 2,000 | | Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2010B, 5.750%, 7/01/22 (Alternative Minimum Tax) | 7/20 at 100.00 | | A | | | 2,316,500 | |
| | 400 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006B, 5.625%, 9/01/26 | No Opt. Call | | BBB | | | 471,712 | |
| | | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006C: | | | | | | | |
| | 1,020 | | 5.000%, 2/01/21 | No Opt. Call | | A | | | 1,178,304 | |
| | 1,490 | | 5.000%, 2/01/24 | No Opt. Call | | A | | | 1,768,943 | |
| | 1,365 | | 5.000%, 2/01/25 | No Opt. Call | | A | | | 1,625,865 | |
| | 9,885 | | Total Tennessee | | | | | | 11,639,358 | |
| | | | Texas – 9.8% (7.7% of Total Investments) | | | | | | | |
| | 200 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2010, 5.750%, 1/01/25 (Pre-refunded 1/01/20) | 1/20 at 100.00 | | BBB+ (5) | | | 232,856 | |
| | 500 | | Central Texas Regional Mobility Authority, Revenue Bonds, Subordinate Lien Refunding Series 2013, 5.000%, 1/01/22 | No Opt. Call | | BBB | | | 558,670 | |
| | 685 | | Denton County Fresh Water Supply District 7, Texas, General Obligation Bonds, Refunding Series 2013, 4.000%, 2/15/21 – AGM Insured | No Opt. Call | | AA | | | 741,170 | |
| | 2,000 | | Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1995, 4.875%, 5/01/25 (Alternative Minimum Tax) | 10/22 at 100.00 | | BB | | | 2,127,680 | |
| | | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Second Lien Series 2014C: | | | | | | | |
| | 230 | | 5.000%, 11/15/22 | No Opt. Call | | A3 | | | 271,345 | |
| | 1,660 | | 5.000%, 11/15/23 | No Opt. Call | | A3 | | | 1,989,510 | |
| | 960 | | 5.000%, 11/15/25 | 11/24 at 100.00 | | A3 | | | 1,156,819 | |
| | 515 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Facilities Department, Refunding Series 2011A, 5.250%, 9/01/19 | No Opt. Call | | A2 | | | 581,801 | |
| | | | Irving, Texas, Hotel Occupancy Tax Revenue Bonds, Series 2014B: | | | | | | | |
| | 465 | | 4.000%, 8/15/22 | 8/19 at 100.00 | | BBB+ | | | 489,343 | |
| | 535 | | 4.000%, 8/15/23 | 8/19 at 100.00 | | BBB+ | | | 560,766 | |
| | 100 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, Southwest Airlines Company – Love Field Modernization Program Project, Series 2012, 5.000%, 11/01/20 (Alternative Minimum Tax) | No Opt. Call | | Baa1 | | | 112,981 | |
| | | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White Healthcare Project, Tender Option Bond Trust 1149: | | | | | | | |
| | 100 | | 20.603%, 8/15/22 (IF) (4) | No Opt. Call | | AA– | | | 198,130 | |
| | 155 | | 20.414%, 8/15/24 (IF) (4) | 8/23 at 100.00 | | AA– | | | 319,328 | |
| | 200 | | 20.603%, 8/15/26 (IF) (4) | 8/23 at 100.00 | | AA– | | | 395,750 | |
| | 175 | | 20.377%, 8/15/27 (IF) (4) | 8/23 at 100.00 | | AA– | | | 339,106 | |
| | 3,000 | | Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%, 12/15/26 | No Opt. Call | | BBB+ | | | 3,773,190 | |
| | 3,000 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 2012, 5.000%, 12/15/27 | No Opt. Call | | A3 | | | 3,443,970 | |
| | 230 | | Texas Public Finance Authority Charter School Finance Corporation, Education Revenue Bonds, Uplift Education, Series 2007A, 5.750%, 12/01/27 | 12/17 at 100.00 | | BBB– | | | 240,904 | |
| | 360 | | Texas Public Finance Authority, Revenue Bonds, Texas Southern University Financing System, Series 2011, 6.000%, 5/01/23 | 5/21 at 100.00 | | BBB | | | 411,523 | |
| | 460 | | Waco Health Facilities Development Corporation, Texas, Hillcrest Health System Project, FHA Insured Mortgage Revenue Bonds, Series 2006A, 5.000%, 8/01/31 (Pre-refunded 8/01/16) – NPFG Insured | 8/16 at 100.00 | | AA– (5) | | | 463,427 | |
| | 15,530 | | Total Texas | | | | | | 18,408,269 | |
| NIQ | Nuveen Intermediate Duration Quality Municipal Term Fund | |
| | Portfolio of Investments (continued) | May 31, 2016 |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | Utah – 1.7% (1.3% of Total Investments) | | | | | | | |
| $ | 3,000 | | Salt Lake County, Utah, Research Facility Revenue Bonds, Huntsman Cancer Foundation, Series 2013A-1, 5.000%, 12/01/33 (Mandatory put 12/15/20) | 12/18 at 100.00 | | N/R | | $ | 3,173,700 | |
| | | | Vermont – 0.5% (0.4% of Total Investments) | | | | | | | |
| | 900 | | Vermont Economic Development Authority, Solid Waste Disposal Revenue Bonds, Casella Waste Systems, Inc. Project, Series 2013, 4.750%, 4/01/36 (Mandatory put 4/02/18) (Alternative Minimum Tax) | No Opt. Call | | BB– | | | 931,869 | |
| | | | Virgin Islands – 1.1% (0.9% of Total Investments) | | | | | | | |
| | 2,000 | | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 4.000%, 10/01/22 – AGM Insured | No Opt. Call | | AA | | | 2,133,540 | |
| | | | Virginia – 0.3% (0.2% of Total Investments) | | | | | | | |
| | 535 | | Chesapeake, Virginia, Transportation System Senior Toll Road Revenue Bonds, Series 2012A, 5.000%, 7/15/21 | No Opt. Call | | BBB | | | 613,731 | |
| | | | Washington – 0.5% (0.4% of Total Investments) | | | | | | | |
| | 700 | | Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2015A, 5.000%, 4/01/27 | 10/24 at 100.00 | | A+ | | | 860,146 | |
| | | | West Virginia – 0.6% (0.4% of Total Investments) | | | | | | | |
| | 1,035 | | West Virginia Economic Development Authority, Solid Waste Disposal Facilities Revenue Bonds, Appalachian Power Company – Amos Project, Refunding Series 2015A, 1.900%, 3/01/40 | No Opt. Call | | Baa1 | | | 1,040,900 | |
| | | | Wisconsin – 0.5% (0.4% of Total Investments) | | | | | | | |
| | | | University of Wisconsin Hospitals and Clinics Authority, Revenue Bonds, Tender Option Bond Trust 2015-XF0127: | | | | | | | |
| | 50 | | 19.208%, 4/01/20 (IF) (4) | No Opt. Call | | A+ | | | 97,676 | |
| | 100 | | 19.957%, 10/01/20 (IF) (4) | No Opt. Call | | A+ | | | 210,530 | |
| | 185 | | 19.603%, 10/01/20 (IF) (4) | 4/23 at 100.00 | | A+ | | | 382,317 | |
| | 100 | | 19.957%, 10/01/20 (IF) (4) | 4/23 at 100.00 | | A+ | | | 202,890 | |
| | 435 | | Total Wisconsin | | | | | | 893,413 | |
| $ | 207,030 | | Total Long-Term Investments (cost $226,217,224) | | | | | | 236,871,382 | |
| | Principal | | | Optional Call | | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | | Value | |
| | | | SHORT-TERM INVESTMENTS – 1.4% (1.1% of Total Investments) | | | | | | | |
| | | | MUNICIPAL BONDS – 1.4% (1.1% of Total Investments) | | | | | | | |
| | | | Illinois – 0.5% (0.4% of Total Investments) | | | | | | | |
| $ | 850 | | Illinois Finance Authority, Revenue Bonds, University of Chicago, Variable Rate Demand Obligations, Tender Option Bond Floater 2015-XM0114, 0.460%, 2/01/18 (7) | No Opt. Call | | A-1 | | $ | 850,000 | |
| | | | Kentucky – 0.9% (0.7% of Total Investments) | | | | | | | |
| | 1,750 | | Kentucky State Property and Buildings Commission, Revenue Bonds, Tender Option Bond Floater 11767, Variable Rate Demand Obligations, 0.600%, 2/01/17 | No Opt. Call | | A-1 | | | 1,750,000 | |
| $ | 2,600 | | Total Short-Term Investments (cost $2,600,000) | | | | | | 2,600,000 | |
| | | | Total Investments (cost $228,817,224) – 127.9% | | | | | | 239,471,382 | |
| | | | Variable Rate MuniFund Term Preferred Shares, at Liquidation Preference – (29.4)% (8) | | | | | | (55,000,000 | ) |
| | | | Other Assets Less Liabilities – 1.5% (9) | | | | | | 2,851,907 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | | $ | 187,323,289 | |
Investments in Derivatives as of May 31, 2016
Interest Rate Swaps
| | | | | | | | | | | | | | | | Optional | | | | | Variation | | | | |
| | | | | | Fund | | | | | | Fixed Rate | | | | Early | | | | | Margin | | | Unrealized | |
| | | | Notional | | Pay/Receive | | Floating Rate | | Fixed Rate | | Payment | | Effective | | Termination | | Termination | | | Receivable/ | | | Appreciation | |
| Counterparty | | | Amount | | Floating Rate | | Index | | (Annualized) | | Frequency | | Date (10) | | Date | | Date | | | Payable | | | (Depreciation) | |
| Barclays Bank | | $ | 4,600,000 | | Receive | | 3-Month USD LIBOR-ICE | | 2.504% | | Semi-Annually | | 9/20/16 | | — | | 9/20/26 | | $ | 6,297 | | $ | (326,732) | |
| PLC* | | | | | | | | | | | | | | | | | | | | | | | | |
| JPMorgan Chase | | | 3,700,000 | | Receive | | 3-Month USD LIBOR-ICE | | 2.857 | | Semi-Annually | | 7/13/16 | | 1/06/26 | | 7/13/26 | | | 5,533 | | | (396,743) | |
| Bank N.A.* | | | | | | | | | | | | | | | | | | | | | | | | |
| JPMorgan Chase | | | 5,500,000 | | Receive | | Weekly USD-SIFMA | | 1.947 | | Quarterly | | 6/09/16 | | 10/09/16 | | 6/09/26 | | | — | | | (346,762) | |
| Bank N.A. | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 13,800,000 | | | | | | | | | | | | | | | | $ | 11,830 | | $ | (1,070,237) | |
* Citigroup Global Markets Inc. is the clearing broker for this transaction.
| (1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (5) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (6) | Step-up coupon. The rate shown is the coupon as of the end of the reporting period. |
| (7) | Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
| (8) | Variable Rate MuniFund Term Preferred Shares, at Liquidation Preference as a percentage of Total Investments is 23.0%. |
| (9) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter ("OTC") derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of OTC-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
| (10) | Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| 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. |
| USD LIBOR-ICE | United States Dollar-London Inter-Bank Offered Rate Intercontinental Exchange |
| USD-SIFMA | United States Dollar-Securities Industry and Financial Markets Association |
See accompanying notes to financial statements.
| Statement of | | |
| | Assets and Liabilities | May 31, 2016 |
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Assets | | | | | | | |
| Long-term investments, at value (cost $797,817,477 and $226,217,224, respectively) | | $ | 825,111,552 | | $ | 236,871,382 | |
| Short-term investments, at value (cost approximates value) | | | — | | | 2,600,000 | |
Cash collateral at brokers(1) | | | 404,826 | | | 502,327 | |
| Receivable for: | | | | | | | |
| Interest | | | 14,758,663 | | | 3,914,419 | |
| Investments sold | | | 6,020,285 | | | 350,000 | |
| Variation margin on swap contracts | | | 10,019 | | | 11,830 | |
| Deferred offering costs | | | 28,445 | | | 8,719 | |
| Other assets | | | 32,961 | | | 4,795 | |
| Total assets | | | 846,366,751 | | | 244,263,472 | |
| Liabilities | | | | | | | |
| Cash overdraft | | | 420,615 | | | 770,394 | |
| Unrealized depreciation on interest rate swaps | | | 1,253,373 | | | 346,762 | |
| Payable for: | | | | | | | |
| Dividends | | | 2,532,981 | | | 596,434 | |
| Investments purchased | | | 810,900 | | | — | |
| Interest | | | 192,213 | | | 60,410 | |
| Variable Rate MuniFund Term Preferred ("VMTP") Shares, at liquidation preference | | | 175,000,000 | | | 55,000,000 | |
| Accrued expenses: | | | | | | | |
| Management fees | | | 465,239 | | | 111,901 | |
| Trustees fees | | | 26,590 | | | 852 | |
| Other | | | 106,210 | | | 53,430 | |
| Total liabilities | | | 180,808,121 | | | 56,940,183 | |
| Net assets applicable to common shares | | $ | 665,558,630 | | $ | 187,323,289 | |
| Common shares outstanding | | | 46,909,660 | | | 13,097,144 | |
| Net asset value ("NAV") per common share outstanding | | $ | 14.19 | | $ | 14.30 | |
| Net assets applicable to common shares consist of: | | | | | | | |
| Common shares, $0.01 par value per share | | $ | 469,097 | | $ | 130,971 | |
| Paid-in surplus | | | 670,112,474 | | | 186,890,877 | |
| Undistributed (Over-distribution of) net investment income | | | 3,484,137 | | | 81,079 | |
| Accumulated net realized gain (loss) | | | (33,829,352 | ) | | (9,363,559 | ) |
| Net unrealized appreciation (depreciation) | | | 25,322,274 | | | 9,583,921 | |
| Net assets applicable to common shares | | $ | 665,558,630 | | $ | 187,323,289 | |
| Authorized shares: | | | | | | | |
| Common | | | Unlimited | | | Unlimited | |
| Preferred | | | Unlimited | | | Unlimited | |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
| Statement of | | |
| | Operations | Year Ended May 31, 2016 |
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Investment Income | | $ | 39,939,811 | | $ | 9,179,770 | |
| Expenses | | | | | | | |
| Management fees | | | 5,416,818 | | | 1,301,203 | |
| Interest expense and amortization of offering costs | | | 1,943,230 | | | 696,501 | |
| Custodian fees | | | 104,907 | | | 42,584 | |
| Trustees fees | | | 22,086 | | | 6,577 | |
| Professional fees | | | 84,668 | | | 47,231 | |
| Shareholder reporting expenses | | | 68,552 | | | 23,392 | |
| Shareholder servicing agent fees | | | 17,906 | | | 17,890 | |
| Stock exchange listing fees | | | 14,999 | | | 7,912 | |
| Investor relations expenses | | | 66,843 | | | 19,485 | |
| Other | | | 54,411 | | | 27,321 | |
| Total expenses | | | 7,794,420 | | | 2,190,096 | |
| Net investment income (loss) | | | 32,145,391 | | | 6,989,674 | |
| Realized and Unrealized Gain (Loss) | | | | | | | |
| Net realized gain (loss) from: | | | | | | | |
| Investments | | | (1,152,784 | ) | | (21,298 | ) |
| Swaps | | | (9,497,055 | ) | | (2,068,331 | ) |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | |
| Investments | | | 25,418,559 | | | 9,816,310 | |
| Swaps | | | 7,343,872 | | | 807,008 | |
| Net realized and unrealized gain (loss) | | | 22,112,592 | | | 8,533,689 | |
| Net increase (decrease) in net assets applicable to common shares from operations | | $ | 54,257,983 | | $ | 15,523,363 | |
See accompanying notes to financial statements.
| Statement of |
| | Changes in Net Assets | |
| | | Intermediate | | Intermediate | |
| | | Duration (NID) | | Duration Quality (NIQ) | |
| | | | Year | | | Year | | | Year | | | Year | |
| | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | | 5/31/16 | | | 5/31/15 | | | 5/31/16 | | | 5/31/15 | |
| Operations | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 32,145,391 | | $ | 32,450,093 | | $ | 6,989,674 | | $ | 7,617,188 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | (1,152,784 | ) | | (4,531,653 | ) | | (21,298 | ) | | (1,116,149 | ) |
| Swaps | | | (9,497,055 | ) | | (2,150,000 | ) | | (2,068,331 | ) | | (2,692,675 | ) |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | 25,418,559 | | | 13,987,130 | | | 9,816,310 | | | 2,954,981 | |
| Swaps | | | 7,343,872 | | | (6,487,736 | ) | | 807,008 | | | (1,282,038 | ) |
| Net increase (decrease) in net assets applicable to common shares from operations | | | 54,257,983 | | | 33,267,834 | | | 15,523,363 | | | 5,481,307 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (32,086,207 | ) | | (32,104,971 | ) | | (7,543,955 | ) | | (7,809,827 | ) |
| Decrease in net assets applicable to common shares from distributions to common shareholders | | | (32,086,207 | ) | | (32,104,971 | ) | | (7,543,955 | ) | | (7,809,827 | ) |
| Net increase (decrease) in net assets applicable to common shares | | | 22,171,776 | | | 1,162,863 | | | 7,979,408 | | | (2,328,520 | ) |
| Net assets applicable to common shares at the beginning of period | | | 643,386,854 | | | 642,223,991 | | | 179,343,881 | | | 181,672,401 | |
| Net assets applicable to common shares at the end of period | | $ | 665,558,630 | | $ | 643,386,854 | | $ | 187,323,289 | | $ | 179,343,881 | |
| Undistributed (Over-distribution of) net investment income at the end of period | | $ | 3,484,137 | | $ | 3,279,155 | | $ | 81,079 | | $ | 516,392 | |
See accompanying notes to financial statements.
| Statement of | |
| | Cash Flows | Year Ended May 31, 2016 |
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Cash Flows from Operating Activities: | | | | | | | |
| Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations | | $ | 54,257,983 | | $ | 15,523,363 | |
| Adjustments to reconcile the net increase (decrease) in net assets applicable to common shares from operations to net cash provided by (used in) operating activities: | | | | | | | |
| Purchases of investments | | | (80,413,576 | ) | | (15,820,021 | ) |
| Proceeds from sales and maturities of investments | | | 97,096,712 | | | 17,272,335 | |
| Proceeds from (Purchases of) short-term investments, net | | | 1,440,000 | | | (360,000 | ) |
| Proceeds from (Payments for) swaps contracts, net | | | (9,497,055 | ) | | (2,068,331 | ) |
| Payment-in-kind distributions | | | (392,187 | ) | | — | |
| Taxes paid on undistributed capital gains | | | (121 | ) | | — | |
| Amortization (Accretion) of premiums and discounts, net | | | 6,393,319 | | | 2,976,925 | |
| Amortization of deferred offering costs | | | 17,030 | | | 18,480 | |
| (Increase) Decrease in: | | | | | | | |
| Cash collateral at brokers | | | (404,826 | ) | | (502,327 | ) |
| Receivable for interest | | | (84,948 | ) | | 50,211 | |
| Receivable for investments sold | | | (5,145,285 | ) | | (50,000 | ) |
| Receivable for variation margin on swap contracts | | | (10,019 | ) | | (11,830 | ) |
| Other assets | | | (4,525 | ) | | 73 | |
| Increase (Decrease) in: | | | | | | | |
| Payable for interest | | | 5,466 | | | 8,725 | |
| Payable for investments purchased | | | (4,498,257 | ) | | (1,145,580 | ) |
| Accrued management fees | | | 7,562 | | | 2,525 | |
| Accrued Trustees fees | | | 4,374 | | | (21 | ) |
| Accrued other expenses | | | (3,121 | ) | | 3,132 | |
| Net realized (gain) loss from: | | | | | | | |
| Investments | | | 1,152,784 | | | 21,298 | |
| Swaps | | | 9,497,055 | | | 2,068,331 | |
| Paydowns | | | — | | | (4,670 | ) |
| Change in net unrealized (appreciation) depreciation of: | | | (404,826 | ) | | | |
| Investments | | | (25,418,559 | ) | | (9,816,310 | ) |
Swaps(1) | | | (8,062,300 | ) | | (1,530,483 | ) |
| Net cash provided by (used in) operating activities | | | 35,937,506 | | | 6,635,825 | |
| Cash Flows from Financing Activities | | | | | | | |
| Increase (Decrease) in: | | | | | | | |
| Cash overdraft | | | (3,851,354 | ) | | 770,394 | |
| Payable for offering costs | | | — | | | (7,077 | ) |
| Cash distribution paid to common shareholders | | | (32,086,152 | ) | | (7,565,723 | ) |
| Net cash provided by (used in) financing activities | | | (35,937,506 | ) | | (6,802,406 | ) |
| Net Increase (Decrease) in Cash | | | — | | | (166,581 | ) |
| Cash at beginning of period | | | — | | | 166,581 | |
| Cash at end of period | | $ | — | | $ | — | |
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| Supplemental Disclosure of Cash Flow Information | | | (NID | ) | | (NIQ | ) |
| Cash paid for interest (excluding amortization of offering costs) | | $ | 1,773,624 | | $ | 557,500 | |
(1) | Excluding OTC-cleared swaps. |
See accompanying notes to financial statements.
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | Less Distributions to | | | | | | | | | | |
| | | | | Investment Operations | | Common Shareholders | | Common Share | |
| | | Beginning | | | Net | | | Net | | | | | | From | | | From | | | | | | | | | | | | | |
| | | Common | | | Investment | | | Realized/ | | | | | | Net | | | Accumulated | | | | | | | | | | | | Ending | |
| | | Share | | | Income | | | Unrealized | | | | | | Investment | | | Net Realized | | | | | | Offering | | | Ending | | | Share | |
| | | NAV | | | (Loss) | | | Gain (Loss) | | | Total | | | Income | | | Gains | | | Total | | | Costs | | | NAV | | | Price | |
| Intermediate Duration (NID) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 5/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2016 | | $ | 13.72 | | | $ | 0.68 | | | $ | 0.47 | | | $ | 1.15 | | | $ | (0.68 | ) | | $ | — | | | $ | (0.68 | ) | | $ | — | | | $ | 14.19 | | | $ | 13.68 | |
| 2015 | | | 13.69 | | | | 0.69 | | | | 0.02 | | | | 0.71 | | | | (0.68 | ) | | | — | | | | (0.68 | ) | | | — | | | | 13.72 | | | | 12.48 | |
| 2014 | | | 14.04 | | | | 0.69 | | | | (0.37 | ) | | | 0.32 | | | | (0.67 | ) | | | — | | | | (0.67 | ) | | | — | ** | | | 13.69 | | | | 12.59 | |
| 2013(d) | | | 14.33 | | | | 0.26 | | | | (0.30 | ) | | | (0.04 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) | | | (0.03 | ) | | | 14.04 | | | | 13.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Intermediate Duration Quality (NIQ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 5/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2016 | | | 13.69 | | | | 0.53 | | | | 0.66 | | | | 1.19 | | | | (0.58 | ) | | | — | | | | (0.58 | ) | | | — | | | | 14.30 | | | | 13.53 | |
| 2015 | | | 13.87 | | | | 0.58 | | | | (0.16 | ) | | | 0.42 | | | | (0.60 | ) | | | — | | | | (0.60 | ) | | | — | | | | 13.69 | | | | 12.49 | |
| 2014 | | | 14.12 | | | | 0.60 | | | | (0.27 | ) | | | 0.33 | | | | (0.58 | ) | | | — | | | | (0.58 | ) | | | — | | | | 13.87 | | | | 12.92 | |
| 2013(e) | | | 14.33 | | | | 0.14 | | | | (0.22 | ) | | | (0.08 | ) | | | (0.10 | ) | | | — | | | | (0.10 | ) | | | (0.03 | ) | | | 14.12 | | | | 13.09 | |
| | | VMTP Shares | |
| | | at the End of Period | |
| | | | Aggregate | | | Asset | |
| | | | Amount | | | Coverage | |
| | | | Outstanding | | | Per $100,000 | |
| | | | (000 | ) | | Share | |
| Intermediate Duration (NID) | | | | | | | |
| Year Ended 5/31: | | | | | | | |
| 2016 | | $ | 175,000 | | $ | 480,319 | |
| 2015 | | | 175,000 | | | 467,650 | |
| 2014 | | | 175,000 | | | 466,985 | |
| 2013(d) | | | 175,000 | | | 476,271 | |
| | | | | | | | |
| Intermediate Duration Quality (NIQ) | | | | | | | |
| Year Ended 5/31: | | | | | | | |
| 2016 | | | 55,000 | | | 440,588 | |
| 2015 | | | 55,000 | | | 426,080 | |
| 2014 | | | 55,000 | | | 430,313 | |
| 2013(e) | | | 55,000 | | | 436,154 | |
| | | | | | Common Share Supplemental Data/ | |
| | | | | | Ratios Applicable to Common Shares | |
| Common Share | | | | | | | | | | | | | |
| Total Returns | | | | | | Ratios to Average Net Assets(b) | | | | |
| | | | | | | | | | | | | | | | |
| | | Based on | | | | | | | | | Net | | | Portfolio | |
| Based on | | | Share | | | Ending Net | | | | | | Investment | | | Turnover | |
| NAV | (a) | | Price | (a) | | Assets (000 | ) | | Expenses | (c) | | Income (Loss | ) | | Rate(f) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | 8.66 | % | | | 15.59 | % | | $ | 665,559 | | | | 1.20 | % | | | 4.96 | % | | | 10 | % |
| | 5.29 | | | | 4.62 | | | | 643,387 | | | | 1.23 | | | | 5.01 | | | | 18 | |
| | 2.66 | | | | 2.47 | | | | 642,224 | | | | 1.28 | | | | 5.33 | | | | 19 | |
| | (0.46 | ) | | | (11.94 | ) | | | 658,474 | | | | 1.05 | * | | | 3.97 | * | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 8.85 | | | | 13.26 | | | | 187,323 | | | | 1.20 | | | | 3.83 | | | | 7 | |
| | 3.01 | | | | 1.27 | | | | 179,344 | | | | 1.16 | | | | 4.17 | | | | 15 | |
| | 2.70 | | | | 3.64 | | | | 181,672 | | | | 1.21 | | | | 4.57 | | | | 13 | |
| | (0.77 | ) | | | (12.12 | ) | | | 184,885 | | | | 1.10 | * | | | 3.30 | * | | | 1 | |
| (a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| | |
| | Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| (b) | Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to preferred shares issued by the Fund. |
| (c) | The expense ratios reflect, among other things, all interest expense and other costs related to preferred shares (as described in Note 4 – Fund Shares, Preferred Shares), as follows: |
| Intermediate Duration (NID) | | | | |
| Year Ended 5/31: | | | | |
| 2016 | | | 0.30 | % |
| 2015 | | | 0.33 | |
| 2014 | | | 0.36 | |
| 2013(d) | | | 0.23 | * |
| Intermediate Duration Quality (NIQ) | | | | |
| Year Ended 5/31: | | | | |
| 2016 | | | 0.38 | % |
| 2015 | | | 0.33 | |
| 2014 | | | 0.36 | |
| 2013(e) | | | 0.30 | * |
| (d) | For the period December 5, 2012 (commencement of operations) through May 31, 2013. |
| (e) | For the period February 7, 2013 (commencement of operations) through May 31, 2013. |
| (f) | 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. |
| * | Annualized. |
| ** | Rounds to less than $0.01 per share. |
See accompanying notes to financial statements.
| Notes to Financial Statements |
1. General Information and Significant Accounting Policies
General Information
Fund Information
The funds covered in this report and their corresponding New York Stock Exchange ("NYSE") symbols are as follows (each a "Fund" and collectively, the "Funds"):
| | | |
| | • | Nuveen Intermediate Duration Municipal Term Fund (NID) ("Intermediate Duration (NID)") |
| | • | Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ) ("Intermediate Duration Quality (NIQ)") |
The Funds are registered under the Investment Company Act of 1940, as amended, as diversified, closed-end management investment companies. Intermediate Duration (NID) and Intermediate Duration Quality (NIQ) were organized as Massachusetts business trusts on September 11, 2012 and December 11, 2012, respectively. Intermediate Duration (NID) and Intermediate Duration Quality (NIQ) each have a term of ten years and intend to liquidate and distribute their net assets to shareholders on or before March 31, 2023 and June 30, 2023, respectively.
The end of the reporting period for the Funds is May 31, 2016, and the period covered by these Notes to Financial Statements is the fiscal year ended May 31, 2016 (the "current fiscal period").
Investment Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). Nuveen is an operating division of TIAA Global Asset Management. The Adviser is responsible for each Fund's overall investment strategy and 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 and Principal Investment Strategies
Intermediate Duration (NID) seeks to provide a high level of current income exempt from regular federal income tax with a secondary objective of seeking additional total return. The Fund will seek to achieve its investment objectives by investing in municipal securities that the Sub-Adviser believes are underrated or undervalued, based upon its bottom-up, research-driven investment strategy. The Fund also will seek to reduce the risk of rising interest rates by maintaining a portfolio with an intermediate duration of between three and ten years (including the effects of leverage). The Fund's portfolio will be actively managed, with the goal of capitalizing on historically favorable municipal credit spreads (the difference between yields on municipal securities across all debt rating categories) currently available in the market. Under normal circumstances, the Fund will invest at least 80% of its managed assets (as defined in Note 7 – Management Fees and Other Transactions with Affiliates) in municipal securities and other related investments, the income from which is exempt from regular federal income tax. The Fund will invest at least 50% of its managed assets in investment grade municipal securities; it also may invest in below investment grade securities, which are regarded as having predominately speculative characteristics with respect to an issuer's capacity to pay interest and repay principal, and are commonly referred to as junk bonds or high yield debt.
Intermediate Duration Quality (NIQ) seeks to provide current income exempt from regular federal income tax with a secondary objective of seeking additional total return. The Fund seeks to achieve its investment objectives by investing in a diversified portfolio of primarily investment grade quality municipal securities (at least 80% of managed assets), the income from which is exempt from regular federal income tax. The Fund also will seek to reduce the risk of rising interest rates by maintaining a portfolio with an intermediate duration of between three and ten years (including the effects of leverage). The Fund will emphasize the purchase of municipal securities that the Sub-Adviser believes are underrated or undervalued. The Fund's portfolio will be actively managed, seeking to capitalize on favorable relative value opportunities, with the goal of outperforming broad municipal market benchmarks over the life of the Fund.
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 U.S. generally accepted accounting principles ("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 Funds did not have any when issued/delayed delivery purchase commitments.
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as "Legal fee refund" on the Statement of Operations.
Dividends and Distributions to Common Shareholders
Dividends from net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to common shareholders of net investment income, net realized capital gains and/or market discount, if any, 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.
Indemnifications
Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivative 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 with a specific counterparty, when applicable, 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 applicable to common shares from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions market
Notes to Financial Statements (continued)
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). |
Prices of fixed income securities are provided by an independent pricing service ("pricing service") approved by the Funds' Board of Trustees (the "Board"). The pricing service establishes a security's fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Prices of swap contracts are also provided by an independent pricing service approved by the Board using the same methods as described above, and are generally classified as Level 2.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the 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 net asset value ("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 securities dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of the end of the reporting period:
| Intermediate Duration (NID) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 825,111,552 | | $ | — | | $ | 825,111,552 | |
| Investments in Derivatives: | | | | | | | | | | | | | |
| Interest Rate Swaps** | | | — | | | (1,971,801 | ) | | — | | | (1,971,801 | ) |
| Total | | $ | — | | $ | 823,139,751 | | $ | — | | $ | 823,139,751 | |
| Intermediate Duration Quality (NIQ) | | | | | | | | | | | | | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 236,871,382 | | $ | — | | $ | 236,871,382 | |
| Short-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | | — | | | 2,600,000 | | | — | | | 2,600,000 | |
| Investments in Derivatives: | | | | | | | | | | | | | |
| Interest Rate Swaps** | | | — | | | (1,070,237 | ) | | — | | | (1,070,237 | ) |
| Total | | $ | — | | $ | 238,401,145 | | $ | — | | $ | 238,401,145 | |
| * | Refer to the Fund's Portfolio of Investments for state classifications. |
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund's Portfolio of Investments. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board is responsible for making fair value determinations, evaluating the effectiveness of the 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 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
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond (referred to as an "Underlying Bond"), typically with a fixed interest rate, into a special purpose tender option bond ("TOB") trust (referred to as the "TOB Trust") created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as "Floaters") in face amounts equal to some fraction of the Underlying Bond's par amount or market value, and (b) an inverse floating rate certificate (referred to as an "Inverse Floater") that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider ("Liquidity Provider"), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, and in most circumstances the Inverse Floater holder bears substantially all of the Underlying Bond's downside investment risk and also benefits disproportionately from any potential appreciation of the Underlying Bond's value. The value of an Inverse Floater will be more volatile than that of the Underlying Bond because the interest rate is dependent on not only the fixed coupon rate of the Underlying Bond but also on the short-term interest paid on the Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the "Trustee") transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.
The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a "self-deposited Inverse Floater"). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an "externally-deposited Inverse Floater").
An investment in a self-deposited Inverse Floater is accounted for as a "financing" transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund's Portfolio of Investments as "(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund recognizing as liabilities, labeled "Floating rate obligations" on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in "Investment Income" the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust's borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund's Portfolio of Investments as "(IF) – Inverse floating rate investment." For an externally-deposited Inverse Floater, a Fund's Statement of Assets and Liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related
Notes to Financial Statements (continued)
borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in "Investment Income" only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.
As of the end of the reporting period, the aggregate value of Floaters issued by each Fund's TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| Floating Rate Obligations Outstanding | | | (NID | ) | | (NIQ | ) |
| Floating rate obligations: self-deposited Inverse Floaters | | $ | — | | $ | — | |
| Floating rate obligations: externally-deposited Inverse Floaters | | | 185,060,000 | | | 48,320,000 | |
| Total | | $ | 185,060,000 | | $ | 48,320,000 | |
TOB Trusts are supported by a liquidity facility provided by a Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide a loan to the extent that the proceeds of the sale of the Underlying Bond is not sufficient to pay the purchase price of the Floaters.
The size of the commitment under the loan facility for a given TOB Trust is at least equal to the balance of that TOB Trust's outstanding Floaters plus any accrued interest. In consideration of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than the rate that would have been paid had the Floaters been successfully remarketed.
As described above, any amounts outstanding under a liquidity facility are recognized as a component of "Floating rate obligations" on the Statement of Assets and Liabilities by the Fund holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period there were no loans outstanding under any such facility.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse arrangement" or "credit recovery swap") (TOB Trusts involving such agreements are referred to herein as "Recourse Trusts"), under which a Fund agrees to reimburse the Liquidity Provider for the Trust's Floaters, in certain circumstances, for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on an Inverse Floater may increase beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or the Liquidity Provider. Any such shortfall amount in the aggregate is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.
As of the end of the reporting period, each Fund's maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| Floating Rate Obligations – Recourse Trusts | | | (NID | ) | | (NIQ | ) |
| Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters | | $ | — | | $ | — | |
| Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters | | | 175,250,000 | | | 48,320,000 | |
| Total | | $ | 175,250,000 | | $ | 48,320,000 | |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain other derivative instruments, such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The 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.
Interest Rate Swaps Contracts
Interest rate swap contracts involve a Fund's agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which begin at a specified date in the future (the "effective date").
The amount of the payment obligation for an interest rate swap is based on the notional amount and the termination date of the contract. Interest rate swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that the Fund is to receive.
Interest rate swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), the Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund's contractual rights and obligations under the contracts. For an over-the-counter ("OTC") swap that is not cleared through a clearing house ("OTC Uncleared"), the net amount recorded on these transactions, for each counterparty, is recognized on the Statement of Assets and Liabilities as a component of "Unrealized appreciation or depreciation on interest rate swaps (, net)."
Upon the execution of an OTC swap cleared through a clearing house ("OTC Cleared"), the 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 deposited by the Fund to cover initial margin requirements on open swap contracts, if any, is recognized as a component of "Cash collateral at brokers" on the Statement of Assets and Liabilities. Investments in OTC Cleared swaps obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day's "mark-to-market" of the swap contract. If the Fund has unrealized appreciation, the clearing broker will credit the Fund's account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund's account with an amount equal to the depreciation. These daily cash settlements are also known as "variation margin." Variation margin for OTC Cleared swaps is recognized as a receivable and/or payable for "Variation margin on swap contracts" on the Statement of Assets and Liabilities. Upon the execution of an OTC Uncleared swap, neither the Fund nor the counterparty is required to deposit initial margin as the trades are recorded bilaterally between both parties to the swap contract, and the terms of the variation margin are subject to a predetermined threshold negotiated by the Fund and the counterparty. Variation margin for OTC Uncleared swaps is recognized as a component of "Unrealized appreciation or depreciation on interest rate swaps (, net)" as described in the preceding paragraph.
The net amount of periodic payments settled in cash are recognized as a component of "Net realized gain (loss) from swaps" on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contracts are treated as ordinary income or expense, respectively. Changes in the value of the swap contracts during the fiscal period are recognized as a component of "Change in net unrealized appreciation (depreciation) of swaps" on the Statement of Operations. In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as "Interest rate swaps premiums paid and/or received" on the Statement of Assets and Liabilities.
During the current fiscal period, each Fund, as part of its duration management strategy, used duration shortening forward interest rate swap contracts to help maintain its ten-year duration mandate.
The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Average notional amount of interest rate swap contracts outstanding* | | $ | 50,540,000 | | $ | 21,700,000 | |
| * | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
Notes to Financial Statements (continued)
The following table presents the fair value of all swap contracts held by the Funds 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 | | Derivative | | | | | | | | | | | | |
| Risk Exposure | | Instrument | | Location | | | Value | | | Location | | | Value | |
| Intermediate Duration (NID) | | | | | | | | | | | | |
| Interest rate | | Swaps (OTC) | | — | | $ | — | | | Unrealized depreciation on | | $ | (1,253,373 | ) |
| | | | | | | | | | | interest rate swaps | | | | |
| | | Swaps (OTC-Cleared) | | Cash collateral at brokers and Receivable for variation margin on swap contracts* | | | (718,428 | ) | | — | | | — | |
| Total | | | | | | $ | (718,428 | ) | | | | $ | (1,253,373 | ) |
| Intermediate Duration Quality (NIQ) | | | | | | | | | | | | |
| Interest rate | | Swaps (OTC) | | — | | $ | — | | | Unrealized depreciation on | | $ | (346,762 | ) |
| | | | | | | | | | | interest rate swaps | | | | |
| | | Swaps (OTC-Cleared) | | Cash collateral at brokers and Receivable for variation margin on swap contracts* | | | (723,475 | ) | | — | | | — | |
| Total | | | | | | $ | (723,475 | ) | | | | $ | (346,762 | ) |
| * | Value represents the unrealized appreciation (depreciation) of swaps as reported in the Fund's Portfolio of Investments and not the asset and/or liability amount as described in the table above. |
The following table presents the swap contracts subject to netting agreements, and the collateral delivered related to those swap contracts as of the end of the reporting period.
| | | | | | | | | | | | | | | | | | Gross Amounts Not Offset
on the Statement of | | | | |
| | | | | | Gross | | | Gross | | | Amounts | | | Net Unrealized | | | Assets and Liabilities | | | | |
| Fund | | Counterparty | | | Unrealized Appreciation on Interest Rate Swaps | ** | | Unrealized (Depreciation) on Interest Rate Swaps | ** | | Netted on Statement of Assets and Liabilities | | | Appreciation (Depreciation) on Interest Rate Swaps | | | Financial Instruments | *** | | Collateral Pledged to (from) Counterparty | | | Net Exposure | |
| Intermediate Duration (NID) | | | | | | | | | | | | | | | | | | | | | | |
| | | JPMorgan Chase Bank N.A. | | $ | — | | $ | (1,253,373 | ) | $ | — | | $ | (1,253,373 | ) | $ | 1,253,373 | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Intermediate Duration Quality (NIQ) | | | | | | | | | | | | | | | | | | | | | | |
| | | JPMorgan Chase Bank N.A. | | $ | — | | $ | (346,762 | ) | $ | — | | $ | (346,762 | ) | $ | 346,762 | | $ | — | | $ | — | |
| ** | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund's Portfolio of Investments. |
| *** | Represents inverse floating rate securities available for offset. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the current fiscal period and the primary underlying risk exposure.
| | | | | | | | | | | | | Change in Net | |
| | | | | | | | | | Net Realized | | Unrealized Appreciation | |
| | | | Underlying | | | Derivative | | | Gain (Loss) from | | | (Depreciation) of | |
| Fund | | | Risk Exposure | | | Instrument | | | Swaps | | | Swaps | |
| Intermediate Duration (NID) | | | Interest rate | | | Swaps | | $ | (9,497,055 | ) | $ | 7,343,872 | |
| Intermediate Duration Quality (NIQ) | | | Interest rate | | | Swaps | | $ | (2,068,331 | ) | $ | 807,008 | |
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.
4. Fund Shares
Common Share Transactions
The Funds did not have any transactions in common shares during current and prior fiscal periods.
Preferred Shares
Variable Rate MuniFund Term Preferred Shares
Each Fund has issued and outstanding Variable Rate MuniFund Term Preferred ("VMTP") Shares, with $100,000 liquidation preference per share. VMTP Shares are issued via private placement and are not publicly available.
As of the end of the reporting period, VMTP Shares outstanding, at liquidation preference, for each Fund was as follows:
| | | | | | | Shares | | | Liquidation | |
| Fund | | | Series | | | Outstanding | | | Preference | |
| Intermediate Duration (NID) | | | 2018 | | | 1,750 | | $ | 175,000,000 | |
| Intermediate Duration Quality (NIQ) | | | 2018 | | | 550 | | $ | 55,000,000 | |
Intermediate Duration (NID) and Intermediate Duration Quality (NIQ) refinanced all of their outstanding Series 2016 VMTP Shares with the issuance of new Series 2018 VMTP Shares on July 1, 2015 and October 1, 2015, respectively.
Each Fund is obligated to redeem its VMTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares may be redeemed at the option of each Fund, subject to payment of premium for approximately one year following the date of issuance ("Premium Expiration Date"), and at the redemption price per share thereafter. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends. Each Fund may be obligated to redeem a certain amount of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The Term Redemption Date and Premium Expiration Date for each Fund's VMTP Shares are as follows:
| | | | | | | | | | | |
| | | | | | | Term | | | Premium | |
| Fund | | | Series | | | Redemption Date | | | Expiration Date | |
| Intermediate Duration (NID) | | | 2018 | | | August 1, 2018 | | | June 30, 2016 | |
| Intermediate Duration Quality (NIQ) | | | 2018 | | | November 1, 2018 | | | September 30, 2016 | |
The average liquidation preference of VMTP Shares outstanding and annualized dividend rate for each Fund during the current fiscal period were as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Average liquidation preference of VMTP Shares outstanding | | $ | 175,000,000 | | $ | 55,000,000 | |
| Annualized dividend rate | | | 1.02 | % | | 1.03 | % |
VMTP Shares are subject to restrictions on transfer, generally do not trade, and market quotations are generally not available. VMTP Shares are short-term or short/intermediate-term instruments that pay a variable dividend rate tied to a short-term index, plus an additional fixed "spread" amount established at the time of issuance. The fair value of VMTP Shares is expected to be approximately their liquidation preference so long as the fixed "spread" on the VMTP Shares remains roughly in line with the "spread" being demanded by investors on instruments having similar terms in the current market environment. In present market conditions, the Funds' Adviser has determined that fair value of VMTP Shares is expected to be approximately their liquidation preference, but their fair value could vary if market conditions change materially. For financial reporting purposes, the liquidation preference of VMTP Shares is a liability and is recognized as "Variable Rate MuniFund Term Preferred ("VMTP") Shares, at liquidation preference" on the Statement of Assets and Liabilities.
Notes to Financial Statements (continued)
Dividends on VMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly. Unpaid dividends on VMTP Shares are recognized as a component of "Interest payable" on the Statement of Assets and Liabilities. Dividends accrued on VMTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
Costs incurred in connection with each Fund's offering of VMTP Shares were recorded as a deferred charge, which are amortized over the life of the shares and are recognized as components of "Deferred offering costs" on the Statement of Assets and Liabilities and "Interest expense and amortization of offering costs" on the Statement of Operations.
Intermediate Duration (NID) and Intermediate Duration Quality (NIQ) incurred offering costs of $144,405 and $118,120, respectively, in connection with their issuance of Series 2018 VMTP Shares, which were expensed as incurred and are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
Preferred Share Transactions
Transactions in preferred shares for the Funds during the Funds' current and prior fiscal period, where applicable, are noted in the following tables.
Transactions in VMTP Shares for the Funds, where applicable, were as follows:
| | | Year Ended | |
| | | May 31, 2016 | |
| | | | Series | | | Shares | | | Amount | |
| Intermediate Duration (NID) | | | | | | | | | | |
| VMTP Shares issued | | | 2018 | | | 1,750 | | $ | 175,000,000 | |
| VMTP Shares exchanged | | | 2016 | | | (1,750 | ) | | (175,000,000 | ) |
| Net increase (decrease) | | | | | | — | | $ | — | |
| | | Year Ended | |
| | | May 31, 2016 | |
| Intermediate Duration Quality (NIQ) | | | Series | | | Shares | | | Amount | |
| VMTP Shares issued | | | 2018 | | | 550 | | $ | 55,000,000 | |
| VMTP Shares exchanged | | | 2016 | | | (550 | ) | | (55,000,000 | ) |
| Net increase (decrease) | | | | | | — | | $ | — | |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding and derivative transactions, where applicable) during the current fiscal period were as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Purchases | | $ | 80,413,576 | | $ | 15,820,021 | |
| Sales and Maturities | | | 97,096,712 | | | 17,272,335 | |
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. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
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 taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. 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.
As of May 31, 2016, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Cost of Investments | | $ | 796,547,605 | | $ | 228,664,071 | |
| Gross unrealized: | | | | | | | |
| Appreciation | | $ | 38,751,689 | | $ | 11,460,367 | |
| Depreciation | | | (10,187,742 | ) | | (653,056 | ) |
| Net unrealized appreciation (depreciation) of investments | | $ | 28,563,947 | | $ | 10,807,311 | |
Permanent differences, primarily due to taxable market discount, federal taxes paid, paydowns and nondeductible offering costs resulted in reclassifications among the Funds' components of net assets as of May 31, 2016, the Funds' tax year end, as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Paid-in surplus | | $ | (161,450 | ) | $ | (126,003 | ) |
| Undistributed (Over-distribution of) net investment income | | | 145,798 | | | 118,968 | |
| Accumulated net realized gain (loss) | | | 15,652 | | | 7,035 | |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of May 31, 2016, the Funds' tax year end, were as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
Undistributed net tax-exempt income1 | | $ | 5,051,966 | | $ | 610,451 | |
Undistributed net ordinary income2 | | | — | | | — | |
| Undistributed net long-term capital gains | | | — | | | — | |
1 | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 2, 2016, and paid on June 1, 2016. |
2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds' tax years ended May 31, 2016 and May 31, 2015, was designated for purposes of the dividends paid deduction as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| 2016 | | | (NID | ) | | (NIQ | ) |
Distributions from net tax-exempt income3 | | $ | 33,856,785 | | $ | 8,126,064 | |
Distributions from net ordinary income2 | | | 3,046 | | | 1,586 | |
| Distributions from net long-term capital gains | | | — | | | — | |
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| 2015 | | | (NID | ) | | (NIQ | ) |
| Distributions from net tax-exempt income | | $ | 33,990,207 | | $ | 8,302,404 | |
Distributions from net ordinary income2 | | | 18,764 | | | 30,330 | |
| Distributions from net long-term capital gains | | | — | | | — | |
2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
3 | The Funds hereby designate these amounts paid during the fiscal year ended May 31, 2016 as Exempt Interest Dividends. |
Notes to Financial Statements (continued)
As of May 31, 2016, the Funds' tax year end, the Funds 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.
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Capital loss to be carried forward – not subject to expiration | | $ | 33,800,989 | | $ | 9,363,560 | |
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund's management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the 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 Fund 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 schedule:
| | | | Intermediate | |
| | Intermediate | | Duration | |
| | Duration | | Quality | |
| | (NID | ) | (NIQ | ) |
| Average Daily Managed Assets* | Fund-Level Fee | | Fund-Level Fee | |
| For the first $125 million | 0.4000 | % | 0.3000 | % |
| For the next $125 million | 0.3875 | | 0.2875 | |
| For the next $250 million | 0.3750 | | 0.2750 | |
| For the next $500 million | 0.3625 | | 0.2625 | |
| For the next $1 billion | 0.3500 | | 0.2500 | |
| For the next $3 billion | 0.3375 | | 0.2375 | |
| For managed assets over $5 billion | 0.3250 | | 0.2250 | |
The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Funds' daily managed assets:
| Complex-Level Managed Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |
| $55 billion | 0.2000 | % |
| $56 billion | 0.1996 | |
| $57 billion | 0.1989 | |
| $60 billion | 0.1961 | |
| $63 billion | 0.1931 | |
| $66 billion | 0.1900 | |
| $71 billion | 0.1851 | |
| $76 billion | 0.1806 | |
| $80 billion | 0.1773 | |
| $91 billion | 0.1691 | |
| $125 billion | 0.1599 | |
| $200 billion | 0.1505 | |
| $250 billion | 0.1469 | |
| $300 billion | 0.1445 | |
| * | For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute "eligible assets." Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of 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. As of May 31, 2016, the complex-level fee for each Fund was 0.1621%. |
Other Transactions with Affiliates
The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Each Fund is permitted to purchase or sell securities from or to certain other funds managed by the Adviser ("inter-fund trade") under specified conditions outlined in procedures adopted by the Board. These procedures have been designed to ensure that any inter-fund trade of securities by the Fund from or to another fund that is, or could be, considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each inter-fund trade is effected at the current market price as provided by an independent pricing service. Unsettled inter-fund trades as of the end of the reporting period are recognized as a component of "Receivable for investments sold" and/or "Payable for investments purchased" on the Statement of Assets and Liabilities, when applicable.
During the current fiscal period, the Funds engaged in inter-fund trades pursuant to these procedures as follows:
| | | | | | | Intermediate | |
| | | | Intermediate | | | Duration | |
| | | | Duration | | | Quality | |
| | | | (NID | ) | | (NIQ | ) |
| Purchases | | $ | — | | $ | — | |
| Sales | | | 399,649 | | | 187,177 | |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds participated in an unsecured bank line of credit ("Unsecured Credit Line") under which outstanding balances would bear interest at a variable rate. Although the Funds participated in the Unsecured Credit Line, they did not have any outstanding balances during the current fiscal period.
Committed Line of Credit
During the current fiscal period, the Funds, along with certain other funds managed by the Adviser ("Participating Funds"), have established a 364-day, approximately $2.5 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, along with a number of Nuveen closed-end funds, including all of the Funds covered by this shareholder report. The credit facility expires in July 2017 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 1.25% per annum or (b) the Fed Funds rate plus 1.25% 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, neither Fund utilized this facility.
Notes to Financial Statements (continued)
9. Subsequent Events
Management Fees
Effective August 1, 2016, the annual fund-level fee for each Fund, payable monthly, will be calculated according to the following schedule:
| | | | Intermediate | |
| | Intermediate | | Duration | |
| | Duration | | Quality | |
| | (NID | ) | (NIQ | ) |
| Average Daily Net Assets | Fund-Level Fee | | Fund-Level Fee | |
| For the first $125 million | 0.4000 | % | 0.3000 | % |
| For the next $125 million | 0.3875 | | 0.2875 | |
| For the next $250 million | 0.3750 | | 0.2750 | |
| For the next $500 million | 0.3625 | | 0.2625 | |
| For the next $1 billion | 0.3500 | | 0.2500 | |
| For the next $3 billion | 0.3250 | | 0.2250 | |
| For managed assets over $5 billion | 0.3125 | | 0.2125 | |
Additional Fund Information (Unaudited) | |
| | |
| Board of Trustees | | | | | | | | | | |
| William Adams IV* | | Margo Cook** | | Jack B. Evans | | William C. Hunter | | David J. Kundert | | Albin F. Moschner*** |
| John K. Nelson | | William J. Schneider | | Judith M. Stockdale | | Carole E. Stone | | Terence J. Toth | | Margaret L Wolff |
| * | Interested Board Member. |
| ** | Interested Board Member effective July 1, 2016. |
| *** | Effective July 1, 2016. |
| | |
| Fund Manager | | Custodian | | Legal Counsel | | Independent Registered | | Transfer Agent and |
| Nuveen Fund Advisors, LLC | | State Street Bank | | Chapman and Cutler LLP | | Public Accounting Firm | | Shareholder Services |
| 333 West Wacker Drive | | & Trust Company | | Chicago, IL 60603 | | KPMG LLP | | State Street Bank |
| Chicago, IL 60606 | | One Lincoln Street | | | | 200 East Randolph Street | | & Trust Company |
| | | Boston, MA 02111 | | | | Chicago, IL 60601 | | Nuveen Funds |
| | | | | | | | | P.O. Box 43071 |
| | | | | | | | | Providence, RI 02940-3071 |
| | | | | | | | | (800) 257-8787 |
| | | | | | | | |
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
Nuveen Funds' Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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.
CEO Certification Disclosure
Each Fund's Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share Repurchases
Each Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock, as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
| | NID | NIQ | |
| Common shares repurchased | — | — | |
FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.
Glossary of Terms Used in this Report (Unaudited) | |
| ■ | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. |
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| ■ | Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
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| ■ | Duration: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond fund's value to changes when market interest rates change. Generally, the longer a bond's or fund's duration, the more the price of the bond or fund will change as interest rates change. |
| | |
| ■ | Effective Leverage: Effective leverage is a fund's effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in a fund's portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. |
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| ■ | Forward Interest Rate Swap: A contractual agreement between two counterparties under which one party agrees to make periodic payments to the other for an agreed period of time based on a fixed rate, while the other party agrees to make periodic payments based on a floating rate of interest based on an underlying index. Alternatively, both series of cash flows to be exchanged could be calculated using floating rates of interest but floating rates that are based upon different underlying indices. |
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| ■ | Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. |
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| ■ | Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
| | |
| ■ | Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. |
| | |
| ■ | Lipper General & Insured Leveraged Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges. |
| | |
| ■ | Lipper Intermediate Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Intermediate Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge. |
| ■ | Net Asset Value (NAV) Per Share: A fund's Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund's Net Assets divided by its number of shares outstanding. |
| | |
| Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. |
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| ■ | Regulatory Leverage: Regulatory Leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund's capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940. |
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| ■ | S&P Intermediate Duration Municipal Yield Index: An unleveraged, market value-weighted index that tracks both the investment grade municipal bond market and the high yield municipal bond market in the duration ranges of short duration: 1 to 12 years maturity range and long duration: 1 to 17 years maturity range. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
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| ■ | S&P Municipal Bond Intermediate Index: An unleveraged, market value-weighted index containing all of the bonds in the S&P Municipal Bond Index with maturity dates between 3 and 14.999 years. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
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| ■ | Total Investment Exposure: Total investment exposure is a fund's assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a fund's use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities. |
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| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
| Reinvest Automatically, Easily and Conveniently | |
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net as -set value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
Annual Investment Management Agreement Approval Process (Unaudited) |
The Board of Trustees of each Fund (the "Board," and each Trustee a "Board Member"), including the Board Members who are not parties to the Funds' advisory or sub-advisory agreements or "interested persons" of any such parties (the "Independent Board Members"), is responsible for overseeing the performance of the investment adviser and sub-adviser to the respective Fund and determining whether to continue such Fund's advisory agreement (the "Investment Management Agreement") between the Fund and Nuveen Fund Advisors, LLC (the "Adviser") and the sub-advisory agreement (the "Sub-Advisory Agreement" and, together with the Investment Management Agreement, the "Advisory Agreements") between the Adviser and Nuveen Asset Management, LLC (the "Sub-Adviser"). Following an initial term with respect to each Fund upon its commencement of operations, the Board reviews each Investment Management Agreement and Sub-Advisory Agreement on behalf of each Fund and votes to determine whether the respective Advisory Agreement should be renewed. Accordingly, at an in-person meeting held on May 24-26, 2016 (the "May Meeting"), the Board, including a majority of the Independent Board Members, considered and approved the existing Advisory Agreements for the Funds.
During the year, the Board and its Committees met regularly to receive materials and discuss a variety of topics impacting the Funds including, among other things, overall market conditions and market performance, Fund investment performance, brokerage execution, valuation of securities, compliance matters, securities lending, leverage matters, risk management and ongoing initiatives. The Board had established several standing Committees, including the Open-end Fund Committee and Closed-end Fund Committee which permit the Board Members to delve further into the topics particularly relevant to the respective product line and enhance the Board's effectiveness and oversight of the Funds. The Board also seeks to meet with the Sub-Adviser and its investment team at least once over a multiple year rotation through site visits. The information and knowledge the Board gained throughout the year from the Board and Committee meetings, site visits and the related materials were relevant to the Board's evaluation of the Advisory Agreements, and the Board took such information into account in its review of the Advisory Agreements.
In addition to the materials received throughout the year, the Board received additional materials prepared specifically for its annual review of the Advisory Agreements in response to a request by independent legal counsel on behalf of the Independent Board Members. The materials addressed a variety of topics, including a description of the services provided by the Adviser and the Sub-Adviser (each, a "Fund Adviser"); a review of fund performance with a detailed focus on any performance outliers; an analysis of the investment teams; an analysis of the fees and expense ratios of the Funds, including information comparing such fees and expenses to that of peer groups; an assessment of shareholder services for the Funds and of the performance of certain service providers; a review of initiatives instituted or continued during the past year; and a review of premium/discount trends and leverage management as well as information regarding the profitability of the Fund Advisers, the compensation of portfolio managers, and compliance and risk matters.
As part of its annual review, the Board held a separate meeting on April 12-13, 2016 to review the Funds' investment performance and consider an analysis by the Adviser of the Sub-Adviser examining, among other things, the team's assets under management, investment performance, investment approach, and the stability and structure of the Sub-Adviser's organization and investment team. During the review, the Independent Board Members requested and received additional information from management. Throughout the year and throughout their review of the Advisory Agreements, the Independent Board Members were assisted by independent legal counsel. The Independent Board Members met separately with independent legal counsel without management present and received a memorandum from such counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Independent Board Members' review of the Advisory Agreements reflected an ongoing process that incorporated the information and considerations that occurred over the years, including the most recent year, as well as the information specifically furnished for the renewal process. In deciding to renew the Advisory Agreements, the Independent Board Members
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
did not identify a particular factor as controlling, but rather the decision reflected the comprehensive consideration of all the information presented. The following summarizes the principal factors, but not all the factors, the Board considered in its review of 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 initiatives undertaken during the past year by the Adviser. The Board recognized the comprehensive set of services the Adviser provided to manage and operate the Nuveen funds, including (a) product management (such as setting dividends, positioning the product in the marketplace, maintaining and enhancing shareholder communications and reporting to the Board); (b) investment services (such as overseeing the Sub-Adviser and other service providers; analyzing investment performance and risks; overseeing risk management and disclosure; developing and interpreting investment policies; assisting in the development of products; helping to prepare financial statements and marketing disclosures; and overseeing 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 funds' compliance program and related testing); (f) legal support (such as helping to prepare registration statements and proxy statements, interpreting regulations and policies and overseeing fund activities); and (g) providing leverage management. |
| | |
| | The Board reviewed the continued investment the Adviser had made in its business to continue to strengthen the breadth and quality of its services to the benefit of the Nuveen funds. The Board noted the Adviser's additional staffing in key areas that support the funds and the Board, including in investment services, operations, closed-end fund/structured products, fund governance, compliance, fund administration, product management, and information technology. Among the enhancements to its services, the Board recognized the Adviser's (a) expanded activities and support required as a result of regulatory developments, including in areas of compliance and reporting; (b) expanded efforts to support leverage management with a goal of seeking the most effective structure for fund shareholders given appropriate risk levels and regulatory constraints; (c) increased support for dividend management; (d) continued investment in its technical capabilities as the Adviser continued to build out a centralized fund data platform, enhance mobility and remote access capabilities, rationalize and upgrade software platforms, and automate certain regulatory liquidity determinations; (e) continued efforts to rationalize the product line through mergers, liquidations and re-positioning of Nuveen funds with the goal of increasing efficiencies, reducing costs, improving performance and addressing shareholder needs; (f) continued efforts to develop new lines of business designed to enhance the Nuveen product line and meet investor demands; and (g) continued commitment to enhance risk oversight, including the formation of the operational risk group to provide operational risk assessment, the access to platforms which provide better risk reporting to support investment teams, and the development of a new team to initially review new products and major product initiatives. The Board also recognized the Adviser's efforts to renegotiate certain fees of other service providers which culminated in reduced expenses for all funds for custody and accounting services without diminishing the breadth and quality of the services provided. The Board considered the Chief Compliance Officer's report regarding the Adviser's compliance programs, the Adviser's continued development, execution and management of its compliance program, and the additions to the compliance team to support the continued growth of the Nuveen fund family and address regulatory developments. |
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| | The Board also considered information highlighting the various initiatives that the Adviser had implemented or continued during the year to enhance or support the closed-end fund product line. The Board noted the Adviser's continued efforts during 2015 (a) to rationalize the product line through mergers designed to help reduce product overlap, offer shareholders the potential for lower fees and enhanced investor acceptance, and address persistent discounts in the secondary market; (b) to oversee and manage leverage as the Adviser facilitated the rollover of existing facilities and conducted negotiations for |
| | improved terms and pricing to reduce leverage costs; (c) to conduct capital management services including share repurchases and/or share issuances throughout the year and monitoring market conditions to capitalize on such opportunities for the closed-end funds; and (d) to implement data-driven market analytics which, among other things, provided a better analysis of the shareholder base, enhanced the ability to monitor the closed-end funds versus peers and helped to understand trading discounts. The Board also considered the quality and breadth of Nuveen's investment relations program through which Nuveen seeks to build awareness of, and educate investors and financial advisers with respect to, Nuveen closed-end funds which may help to build an active secondary market for the closed-end fund product line. |
| | |
| | As noted, the Adviser also oversees the Sub-Adviser who primarily provides the portfolio advisory services to the Funds. The Board recognized the skill and competency of the Adviser in monitoring and analyzing the performance of the Sub-Adviser and managing the sub-advisory relationship. The Board noted that the Adviser recommended the renewal of each Sub-Advisory Agreement. |
| | |
| | Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory. |
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| B. | The Investment Performance of the Funds and Fund Advisers |
| | The Board considered the long-term and short-term performance history of each Fund. As noted above, the Board reviewed fund performance at its quarterly meetings throughout the year and took into account the information derived from the discussions with representatives of the Adviser about fund performance at these meetings. The Board also considered the Adviser's analysis of fund performance with particular focus on any performance outliers and the factors contributing to such performance and any steps the investment team had taken to address performance concerns. The Board reviewed, among other things, each Fund's investment performance both on an absolute basis and in comparison to peer funds (the "Performance Peer Group") and to recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one- and three-year periods ending December 31, 2015 for Nuveen Intermediate Duration Municipal Term Fund (the "Intermediate Duration Fund") and the quarter and one-year periods ending December 31, 2015 for Nuveen Intermediate Duration Quality Municipal Term Fund (the "Intermediate Duration Quality Fund"), as well as performance information reflecting the first quarter of 2016 for both Funds. |
| | |
| | In evaluating performance information, the Board recognized the following factors may impact the performance data as well as the consideration to be given to particular performance data: |
| | |
| | • The performance data reflected a snapshot in time, in this case as of the end of the most recent calendar year or quarter. A different performance period, however, could generate significantly different results. |
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| | • Long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme had the ability to disproportionately affect long-term performance. |
| | |
| | • Shareholders evaluate performance based on their own holding period which may differ from the performance period reviewed by the Board, leading to different performance results. |
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| | • The Board recognized the difficulty in establishing appropriate peer groups and benchmarks for certain funds, including the Funds. The Board noted that management classified the Performance Peer Groups as low, medium and high in relevancy and took the relevancy of the Performance Peer Group into account when considering the comparative performance data. If the Performance Peer Group differed somewhat from a fund, the Board recognized that the comparative performance data may be of limited value. The Board also recognized that each fund operated pursuant to its own investment objective(s), parameters and restrictions which may differ from that of the Performance Peer Group or benchmark and that these variations lead to differences in performance results. Further, for funds that utilized leverage, the Board understood that leverage during different periods could provide both benefits and risks to a portfolio as compared to an unlevered benchmark. |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
| | In addition to the foregoing, the Independent Board Members continued to recognize the importance of secondary market trading for the shares of closed-end funds. At the quarterly meetings as well as the May Meeting, the Independent Board Members (either at the Board level or through the Closed-end Fund Committee) reviewed, among other things, the premium or discount to net asset value of the Nuveen closed-end funds as of a specified date and over various periods as well as in comparison to the premium/discount average in their respective Lipper peer category. At the May Meeting and/or prior meetings, the Independent Board Members (either at the Board level or through the Closed-end Fund Committee) reviewed, among other things, an analysis by the Adviser of the key economic, market and competitive trends that affected the closed-end fund market and Nuveen closed-end funds and considered any actions proposed periodically by the Adviser to address trading discounts of certain closed-end funds, including, among other things, share repurchases, fund reorganizations, adjusting fund investment mandates and strategies, and increasing fund awareness to investors. The Independent Board Members considered the evaluation of the premium and discount levels of the closed-end funds to be a continuing priority in their oversight of the closed-end funds. |
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| | With respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken. The Board was aware, however, that shareholders chose to invest or remain invested in a fund knowing that the Adviser and the applicable sub-adviser manage the fund, knowing the fund's investment strategy and seeking exposure to that strategy (even if the strategy was "out of favor" in the marketplace) and knowing the fund's fee structure. |
| | |
| | For the Intermediate Duration Fund, the Board noted that, while the Fund ranked in its Performance Peer Group in the fourth quartile in the one- and three-year periods, the Fund outperformed its benchmark in such periods. In reviewing the comparative peer performance, the Board noted that the Performance Peer Group was classified as low for relevancy as there were few comparable funds within the peer set. In this regard, the Board noted that the Fund's generally shorter duration positioning relative to peers was the primary contributor to its underperformance compared to its peer group as longer duration bonds generally outperformed during these periods. The Board also recognized the Fund's positive absolute performance for the one-and three-year periods. Given the Fund's investment strategy and differences from the peer set, the Board was satisfied with the explanation of the variation of the Fund's performance from that of the peer set and with the Fund's performance. |
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| | For the Intermediate Duration Quality Fund, the Board noted that the Fund ranked in the third quartile for the one-year period and outperformed its benchmark during such period. The Board also recognized that the Fund ranked in the second quartile for the quarter ending March 31, 2016. The Board determined that the Fund's performance had been satisfactory. |
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| C. | Fees, Expenses and Profitability |
| | 1. Fees and Expenses |
| | The Board evaluated the management fees and other fees and expenses of each Fund. The Board reviewed, among other things, the gross and net management fees and net total expenses of each Fund (expressed as a percentage of average net assets) in absolute terms and also in comparison to the fee and expense levels of a comparable universe of funds (the "Peer Universe") selected by an independent third-party fund data provider. The Independent Board Members also reviewed the methodology regarding the construction of the applicable Peer Universe. |
| | |
| | In their evaluation of the management fee schedule, the Independent Board Members considered the fund-level and complex-wide breakpoint schedules, as described in further detail below. In this regard, the Board considered that management recently reviewed the breakpoint schedules for the closed-end funds which resulted in reduced breakpoints and/or new breakpoints at certain asset thresholds for numerous closed-end funds, including the Funds. |
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| | In reviewing the comparative fee and expense information, the Independent Board Members recognized that various factors such as the limited size and particular composition of the Peer Universe (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe from year to year; levels of reimbursement or fee waivers; the timing of information used; the differences in the type and use of leverage; and differences in services provided can impact the usefulness of the comparative data in helping to assess the appropriateness of a fund's fees and expenses. In |
| | addition, in reviewing a fund's fees and expenses compared to the fees and expenses of its peers (excluding leverage costs and leveraged assets), the Board generally considered a fund's expenses 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 Universe. The Board reviewed the net expense ratio in recognition that the net expense ratio generally best represented the net experience of the shareholders of a fund as it directly reflected the costs of investing in the respective fund. The Board noted that the majority of the Nuveen funds had a net expense ratio near or below the average of the respective peers. For funds with a net expense ratio of 6 basis points or higher than their respective peer average, the Independent Board Members reviewed the reasons for the outlier status and were satisfied with the explanation for the difference or with any steps taken to address the difference. |
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| | The Independent Board Members noted that the Funds each had a net management fee and net expense ratio below their respective peer averages. |
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| | Based on their review of the fee and expense information provided, the Independent Board Members 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. |
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| | 2. Comparisons with the Fees of Other Clients |
| | The Board also reviewed information regarding the fee rates for other types of clients advised or sub-advised by the respective Fund Adviser. For the Adviser and/or the Sub-Adviser, such other clients may include municipal separately managed accounts and passively managed exchange traded funds (ETFs). |
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| | The Board recognized that each Fund had an affiliated sub-adviser. With respect to affiliated sub-advisers, the Board reviewed, among other things, the range of advisory fee rates and average fee rate assessed for the different types of clients. The Board reviewed information regarding the different types of services provided to the Funds compared to that provided to these other clients which typically did not require the same breadth of day-to-day services required for registered funds. The Board further considered information regarding the differences in, among other things, investment policies, investor profiles, and account sizes between the Nuveen funds and the other types of clients. In addition, the Independent Board Members also recognized that the management fee rates of the foreign funds advised by the Adviser may also vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. The Independent Board Members recognized that the foregoing variations resulted in different economics among the product structures and culminated in varying management fees among the types of clients and funds. |
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| | The Board also was aware that, since the Funds had a sub-adviser, each Fund's management fee reflected two components, the fee retained by the Adviser for its services and the fee the Adviser paid to the Sub-Adviser. The Board noted that many of the administrative services provided to support the Funds by the Adviser may not be required to the same extent or at all for the institutional clients or other clients. In general, the Board noted that higher fee levels 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. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members concluded such facts justify the different levels of fees. |
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| | 3. Profitability of Fund Advisers |
| | In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities on an absolute basis and in comparison to other investment advisers. The Independent Board Members reviewed, 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 for each of the last two calendar years. The Independent Board Members reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2015. The Independent Board Members also noted that the sub-advisory fees for the Funds are paid by the Adviser, however, the Board recognized that the Sub-Adviser is affiliated with Nuveen. In their review, the Independent Board Members recognized that profitability data is rather subjective as various |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
| | allocation methodologies may be reasonable to employ but yet yield different results. The Board also reviewed the results of certain alternative methodologies. The Board considered the allocation methodology employed to prepare the profitability data as well as a summary of the refinements to the methodology that had been adopted over the years which may limit some of the comparability of Nuveen's revenue margins over time. Two Independent Board Members also served as point persons for the Board throughout the year to review and discuss the methodology employed to develop the profitability analysis and any proposed changes thereto and to keep the Board apprised of such changes during the year. In reviewing the profitability data, the Independent Board Members noted that Nuveen's operating margin as well as its margins for its advisory activities to the Nuveen funds for 2015 were consistent with such margins for 2014. |
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| | The Board also considered Nuveen's adjusted operating margins compared to that of other comparable investment advisers (based on asset size and composition) with publicly available data. The Independent Board Members recognized, however, the limitations of the comparative data as the other advisers may have a different business mix, employ different allocation methodologies, have different capital structure and costs, may not be representative of the industry or other factors that limit the comparability of the profitability information. Nevertheless, the Independent Board Members noted that Nuveen's adjusted operating margins appeared comparable to the adjusted margins of the peers. |
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| | Further, as the Adviser is a wholly-owned subsidiary of Nuveen which in turn is an operating division of TIAA Global Asset Management, the investment management arm of Teachers Insurance and Annuity Association of America ("TIAA-CREF"), the Board reviewed a balance sheet for TIAA-CREF reflecting its assets, liabilities and capital and contingency reserves for the last two calendar years to have a better understanding of the financial stability and strength of the TIAA-CREF complex, together with Nuveen. |
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| | Based on the information provided, the Independent Board Members noted that the Adviser appeared to be sufficiently profitable to operate as a viable investment management firm and to honor its obligations as a sponsor of the Nuveen funds. With respect to the Sub-Adviser, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. |
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| | 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, 2015. The Independent Board Members also reviewed 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, 2015. |
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| | In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates received or were expected to receive that were directly attributable to the management of a Fund. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. |
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| | Based on their review, the Independent Board Members determined that the Adviser's and the Sub-Adviser's levels of profitability were reasonable in light of the respective services provided. |
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| D. | Economies of Scale and Whether Fee Levels Reflect These Economies of Scale |
| | The Independent Board Members recognized that 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, and the Independent Board Members considered the extent to which these economies are shared with the funds and their shareholders. Although the Independent Board Members recognized that economies of scale are difficult to measure with precision, the Board noted that there were several acceptable means to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waiver and expense limitation agreements and the Adviser's investment in its business which can enhance the services provided to the funds. With respect to breakpoints, the Independent Board Members noted that, 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 complex-level component. The fund-level fee component declines as the assets of the particular fund grow and the complex-level fee component declines when eligible assets of all the funds in the Nuveen complex combined grow. With respect to closed-end funds, the Independent Board Members noted that, although such funds may from time-to-time make additional share offerings, the growth of their assets would occur primarily through the appreciation of such funds' investment portfolios. The complex-wide fee arrangement was designed to capture economies of scale achieved when total fund complex assets increase, even if the assets of a particular fund are unchanged or decrease. The approach reflected the notion that some of Nuveen's costs were attributable to services provided to all its funds in the complex, and therefore all funds should benefit if these costs were spread over a larger asset base. |
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| | The Independent Board Members reviewed the breakpoint and complex-wide schedules and the material savings achieved from fund-level breakpoints and complex-wide fee reductions for the 2015 calendar year. |
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| | In addition, the Independent Board Members recognized the Adviser's ongoing investment in its business to expand or enhance the services provided to the Nuveen funds. The Independent Board Members noted, among other things, the additions to groups who play a key role in supporting the funds including in closed-end funds/structured products, fund administration, operations, fund governance, investment services, compliance, product management, and technology. The Independent Board Members also recognized the investments in systems necessary to manage the funds including in areas of risk oversight, information technology and compliance. |
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| | Based on their review, the Independent Board Members concluded that the current fee structure was acceptable and reflected economies of scale to be shared with shareholders when assets under management increase. |
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| E. | Indirect Benefits |
| | The Independent Board Members received and considered information regarding other additional benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Funds, including compensation paid to affiliates and research received in connection with brokerage transactions (i.e., soft dollar arrangements). In this regard, the Independent Board Members noted any revenues received by affiliates of the Adviser for serving as co-manager in initial public offerings of new closed-end funds and as underwriter on shelf offerings for certain existing funds. |
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| | In addition to the above, the Independent Board Members considered that the Funds' portfolio transactions are allocated by the Sub-Adviser and the Sub-Adviser may benefit from research received through soft-dollar arrangements. The Board 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 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 such research may benefit the Funds to the extent it enhances the ability of the Sub-Adviser to manage the Funds. |
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| | Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters. |
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| F. | Other Considerations |
| | The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, 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. |
Board Members & Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is set at twelve, effective July 1, 2016. None of the trustees who are not "interested" persons of the Funds (referred to herein as "independent trustees") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members: | | | | | | |
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| ■ | WILLIAM J. SCHNEIDER
1944
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chairman and
Board Member | | 1996
Class III | | Chairman of Miller-Valentine Partners, a real estate investment company; Board Member of Med-America Health System and WDPR Public Radio station; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; formerly, Board member, Business Advisory Council of the Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council; past Chair and Director, Dayton Development Coalition. | | 184 |
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| ■ | JACK B. EVANS
1948
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 1999
Class III | | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; Director, The Gazette Company; Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | | 184 |
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| ■ | WILLIAM C. HUNTER
1948
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2004
Class I | | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and past President (2010-2014) Beta Gamma Sigma, Inc., The International Business Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | | 184 |
| | | | | | | | | | |
| ■ | DAVID J. KUNDERT
1942
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2005
Class II | | Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013), retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible; Board member of Milwaukee Repertory Theatre (since 2016). | | 184 |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members (continued): | | | | | | |
| | | | | | | |
| ■ | ALBIN F. MOSCHNER(2)
1952
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2016
Class III | | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions with Zenith Electronics Corporation (1991-1996). Director, USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions (since 2012); formerly, Director, Wintrust Financial Corporation (1996-2016). | | 184 |
| | | | | | | | | | |
| ■ | JOHN K. NELSON
1962
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2013
Class II | | Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President's Council, Fordham University (since 2010); formerly, senior external advisor to the financial services practice of Deloitte Consulting LLP (2012- 2014): formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets-the Americas (2006- 2007), CEO of Wholesale Banking North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading – North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | | 184 |
| | | | | | | | | | |
| ■ | JUDITH M. STOCKDALE
1947
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 1997
Class I | | Board Member, Land Trust Alliance (since 2013) and U.S. Endowment for Forestry and Communities (since 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | | 184 |
| | | | | | | | | | |
| ■ | CAROLE E. STONE
1947
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2007
Class I | | Director, Chicago Board Options Exchange, Inc. (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); Director, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | | 184 |
| | | | | | | | | | |
| ■ | TERENCE J. TOTH
1959
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2008
Class II | | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007): Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | | 184 |
Board Members & Officers (Unaudited) (continued)
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members (continued): | | | | | | |
| | | | | | | |
| ■ | MARGARET L. WOLFF
1955
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2016
Class I | | Member of the Board of Directors (since 2013) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York- Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | | 184 |
| | | | | | | | | | |
| Interested Board Members: | | | | | | |
| | | | | | | |
| ■ | WILLIAM ADAMS IV(3)
1955
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2013
Class II | | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President, Global Structured Products (2010-2016), prior thereto, Executive Vice President, U.S. Structured Products, (1999-2010) of Nuveen Investments, Inc.; Co-President of Nuveen Fund Advisors, LLC (since 2011); Co-Chief Executive Officer (since 2016), formerly, Senior Executive Vice President of Nuveen Securities, LLC; President (since 2011), of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda's Club Chicago. | | 184 |
| | | | | | | | | | |
| ■ | MARGO L. COOK(2)(3)
1964
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2016
Class III | | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President of Nuveen Investments, Inc; Co-Chief Executive Officer (since 2015), previously, Executive Vice President (2013-2015) of Nuveen Securities, LLC; Senior Executive Vice President (since 2015) of Nuveen Fund Advisors, LLC (Executive Vice President 2011-2015); formerly, Managing Director of Nuveen Commodities Asset Management, LLC (2011-2016); Chartered Financial Analyst. | | 184 |
| | | | | | | | | | |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds: | | | | | | |
| | | | | | | | | | |
| ■ | GIFFORD R. ZIMMERMAN
1956
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chief
Administrative
Officer | | 1988 | | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director and Assistant Secretary of Nuveen Investments Advisers, LLC (since 2002) and Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | | 185 |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds (continued): | | | | | | |
| | | | | | | | | | |
| ■ | CEDRIC H. ANTOSIEWICZ
1962
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 2007 | | Managing Director of Nuveen Securities, LLC. (since 2004); Managing Director of Nuveen Fund Advisors, LLC (since 2014). | | 83 |
| | | | | | | | | | |
| ■ | LORNA C. FERGUSON
1945
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 1998 | | Managing Director (since 2004) of Nuveen Investments Holdings, Inc. | | 185 |
| | | | | | | | | | |
| ■ | STEPHEN D. FOY
1954
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President
and Controller | | 1998 | | Managing Director (since 2014), formerly, Senior Vice President (2013-2014) and Vice President (2005-2013) of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Managing Director (since 2016) of Nuveen Securities, LLC; Certified Public Accountant. | | 185 |
| | | | | | | | | | |
| ■ | NATHANIEL T. JONES
1979
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President
and Treasurer | | 2016 | | Senior Vice President (since 2016), formerly, Vice President (2011-2016) of Nuveen Investments Holdings, Inc.; Chartered Financial Analyst. | | 184 |
| | | | | | | | | | |
| ■ | WALTER M. KELLY
197o
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chief Compliance
Officer and
Vice President | | 2003 | | Senior Vice President (since 2008) of Nuveen Investment Holdings, Inc. | | 185 |
| | | | | | | | | | |
| ■ | DAVID J. LAMB
1963
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 2015 | | Senior Vice President of Nuveen Investments Holdings, Inc. (since 2006), Vice President prior to 2006. | | 83 |
| | | | | | | | | | |
| ■ | TINA M. LAZAR
1961
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 2002 | | Senior Vice President of Nuveen Investments Holdings, Inc. and Nuveen Securities, LLC. | | 185 |
| | | | | | | | | | |
| ■ | KEVIN J. MCCARTHY
1966
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President
and Secretary | | 2007 | | Executive Vice President, Secretary and General Counsel (since March 2016), formerly, Managing Director and Assistant Secretary of Nuveen Investments, Inc.; Executive Vice President (since March 2016), formerly, Managing Director, and Assistant Secretary (since 2008) of Nuveen Securities, LLC; Executive Vice President and Secretary (since March 2016), formerly, Managing Director (2008-2016) and Assistant Secretary (2007-2016), and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Executive Vice President and Secretary (since March 2016), formerly, Managing Director, Assistant Secretary (2011-2016), and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Executive Vice President and Secretary of Nuveen Investments Advisers, LLC; Vice President (since 2007) and Secretary (since March 2016) of NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Winslow Capital Management, LLC (since 2010) and Tradewinds Global Investors, LLC (since 2016); Vice President (since 2010) and Secretary (since 2016), formerly, Assistant Secretary of Nuveen Commodities Asset Management, LLC. | | 185 |
Board Members & Officers (Unaudited) (continued)
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds (continued): | | | | | | |
| | | | | | | | | | |
| ■ | KATHLEEN L. PRUDHOMME
1953
9o1 Marquette Avenue
Minneapolis, MN 554o2 | | Vice President and
Assistant Secretary | | 2011 | | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | | 185 |
| | | | | | | | | | |
| ■ | JOEL T. SLAGER
1978
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President and
Assistant Secretary | | 2013 | | Fund Tax Director for Nuveen Funds (since 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013). | | 185 |
| (1) | The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. |
| (2) | On June 22, 2016, Ms. Cook and Mr. Moschner were appointed as Board members, effective July 1, 2016. |
| (3) | "Interested person" as defined in the 1940 Act, by reason of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
| (4) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. |
Notes
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 equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen helps secure the long-term goals of individual investors and the advisors who serve them. As an operating division of TIAA Global Asset Management, Nuveen provides access to investment expertise from leading asset managers and solutions across traditional and alternative asset classes. Built on more than a century of industry leadership, Nuveen's teams of experts align with clients' specific financial needs and goals, demonstrating commitment to advisors and investors through market perspectives and wealth management and portfolio advisory services. Nuveen manages more than $239 billion in assets as of June 30, 2016.
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/cef
Distributed by Nuveen Investments, LLC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com | |
EAN-C-0516D 17350-INV-Y-07/17
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Shareholder/FundGovernance.aspx. (To view the code, click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 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.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
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.
Kevin J. McCarthy
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.
Gifford R. Zimmerman
Stephen D. Foy
