UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05309
Nuveen Investment Funds, Inc.
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: October 31
Date of reporting period: October 31, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Mutual Funds
Nuveen Equity Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen Global Infrastructure Fund | FGIAX | — | FGNCX | FGNRX | FGIYX | |||||
Nuveen Real Estate Securities Fund | FREAX | FREBX | FRLCX | FRSSX | FARCX | |||||
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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.
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Jay Rosenberg and John Wenker managed the Nuveen Global Infrastructure Fund (formerly known as First American Global Infrastructure Fund) and the Nuveen Real Estate Securities Fund (formerly known as First American Real Estate Securities Fund) over the entire reporting period. Jay, who has more than 16 years of financial industry experience, and John, with 28 years of experience, have both managed the Nuveen Global Infrastructure Fund since its inception in 2007. For the Nuveen Real Estate Securities Fund, John assumed portfolio management responsibilities in 1999, while Jay has been on the management team of the Fund since 2005. Effective March 21, 2011, Scott Sedlak was named associate portfolio manager of the Nuveen Real Estate Securities Fund. He has more than 11 years of financial industry experience. Effective at the close of business on December 31, 2010, the Nuveen Real Estate Securities Fund suspended offering its shares to new investors, except as noted in the Fund’s prospectus.
On the following pages, the portfolio management team for the Funds examines economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The
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Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt issue caused a high degree of volatility in the equity markets. The first half of the period saw dramatic gains for stocks and other risk assets fueled by signs of an improving economy. However, as the summer progressed, markets fell back sharply. For much of August and September, stocks traded lower before staging a comeback in the final month of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen Global Infrastructure Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year and since inception periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Standard & Poor’s (S&P) Global Infrastructure Index and outperformed the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide capital appreciation and income potential by investing primarily in equity securities issued by U.S. and non-U.S. companies that typically derive the majority of their value from owned or operated infrastructure assets. During this period, our strategy for managing the Fund remained consistent. We focused on buying global infrastructure companies that own and operate long-life assets and that have visible cash flows and what we consider to be strong balance sheets, manageable amounts of leverage and inelastic demand characteristics. We believe these types of companies will have ongoing access to capital and the best chances for producing sustainable and growing cash flow. The Fund is structured using a number of core infrastructure companies that we believe should provide long-term outperformance versus the market, combined with more opportunistic holdings that we believe are undervalued
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by the market. We have exposure around the globe with a mixture of holdings that we think represent significant value, as well as positions in companies that may prove to be more stable in a faltering global economy.
The Fund fell moderately short of the S&P Global Infrastructure benchmark during the fiscal year, but has outperformed it over the since-inception period. The nearly flat results for both the Fund and benchmark over the period belied the highly volatile environment driven by political uncertainties, particularly in Europe and China. The Fund’s performance benefited from the continued execution of one of our long-term strategies, which is avoiding securities where in our opinion the impact of political uncertainty is not fully discounted into valuation. Throughout the period, we continued to increase the Fund’s broad underweight to Europe because of the ongoing sovereign debt crisis and the lack of political leadership in response to it. Our aversion to Southern Europe in particular manifested itself in substantial underweights to transportation companies, which are disproportionately domiciled in countries such as Spain, France and Italy. In addition, the Fund’s results also benefited from favorable stock selection in several sectors, including electric utilities, ports and toll roads.
In electric utilities, we continued to be rewarded for our usual underweight versus the benchmark, in addition to positive stock selection. This area of the market was extremely volatile during the year, caused by the high degree of political and regulatory risk in Europe and the aftereffects of the Japanese earthquake and ensuing nuclear plant disaster. Beneficial positions included large underweights to the two biggest Japanese power generation companies and the two biggest German integrated utilities.
In the port sector, we benefited from increased exposure to several Brazil-based companies, including the port of Santos. In Asia, performance was aided by a new addition, International Container Terminal Services, the owner and operator of the Manila port. The company has unique emerging markets port exposure and a strong management team. In terms of China, our view turned bearish during the period as we began to see some significantly weaker cargo data coming from the Pearl River Delta ports and the Los Angeles area ports, which receive a large quantity of shipments from the Shenzhen region. Consequently, we substantially reduced the Fund’s exposure to Chinese port companies, which benefited performance as the stocks sold off quite aggressively.
Besides the previously mentioned underweight in European toll roads, the Fund also benefited from our overall underweight to that sector, which fell short of the benchmark. Within toll roads, stock selection was strong and included an emphasis on Brazilian companies, which performed well, and an underweight in Chinese companies. The toll road companies in China almost all have competing projects that are being built near some of their assets. Because earnings momentum in this market is so important, we correctly believed these Chinese toll road stocks would be hit. Also, similar to Europe, China is facing a number of political issues that are negatively impacting its toll road assets. Because we did not have any clarity on Chinese government policies going forward, we reduced the Fund’s exposure to Chinese toll roads.
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Sectors that detracted from the Fund’s results during the fiscal year included pipelines, gas utilities and water utilities. The pipeline sector was the largest drag on relative performance for the period as mergers, acquisitions and company restructurings caused a great degree of volatility in the segment. The Fund’s shortfall was again mainly the result of substantial underweights in two sizeable positions in the benchmark: Williams and El Paso. We maintained these underweights because a large amount of both firms’ revenues is from exploration and production (E&P) businesses, which have a much higher volatility profile compared to more pure pipeline businesses. Both companies continued to perform well as the market rewarded their decisions to split off their E&P businesses from their infrastructure assets.
We also underperformed in the gas utilities sector. Similar to the toll road segment, we were not sure what the Chinese government’s policies could potentially mean for the country’s gas utilities. Therefore, we significantly trimmed the Fund’s Chinese gas exposure; however, weakness in the marketplace caused the whole segment to remain under pressure during the year and our limited exposure still hurt performance. Those negative results were partially offset by our successful underweight to European gas exposure, which underperformed during the period.
In water utilities, the Fund’s underperformance came primarily from two holdings: China Everbright International and Veolia. China Everbright, which owns and operates waste to energy and waste water treatment plants in China, fell in sympathy with the renewable energy segment. Having met with the management of China Everbright during the period, we continued to like this holding and held the Fund’s position. Veolia, a leading provider of water and wastewater services based in North America, completely reversed its business plan during the period with an announcement that it is exiting 37 countries. It also left investors unsure about its future dividend levels.
We believe the continued volatility in the infrastructure sector underscored the benefits of investing in listed infrastructure companies. By doing so, the Fund continued to offer investors diversification from many standpoints — including regulatory, country, currency, sector and asset — that may be difficult to obtain with a private equity or direct investment. The market gyrations we saw in Southern Europe and China reminded us of the potential consequences of being too concentrated in large, expensive assets that can be vulnerable to unforeseen events and political uncertainties. We believe it takes very active management to distinguish between companies really at risk and companies being unnecessarily penalized by the market and represent attractive buying opportunities. However, despite our diversification efforts, it is important to remember that diversification does not assure a profit against a loss in a declining market.
Nuveen Real Estate Securities Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Morgan Stanley REIT Index and outperformed the Lipper classification average over the twelve-month period.
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What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide above-average income potential and long-term capital appreciation by investing in income-producing common stocks of publicly traded companies engaged in the real estate industry. During this period, we continued to implement the Fund’s strategy of investing on a relative-value basis with a focus on individual stocks rather than economic or market cycles. We also continued to invest the Fund in a relatively sector-neutral manner relative to the comparative index, with a goal of providing shareholders a well-diversified portfolio of public real estate stocks. Our sector-neutral approach reduced the impact of any one property type on the performance of the Fund. Additionally, we continued to invest in a broader universe of stocks than our benchmark index to access more dynamic parts of the commercial real estate cycle.
Commercial real estate market fundamentals generally improved during the reporting period as occupancy levels increased, rental rates for many property types were stable or increasing and same-store net operating income increased. The broader commercial real estate market continued to face the challenges of the slower economic environment. Although more transactions are taking place and investment opportunities are available, lenders are being selective with financing. Also, investors in commercial mortgage-backed securities are being very selective about loans included in new offerings. In this environment, public real estate companies continue to have an advantage with availability and cost of capital.
During the fiscal year, the Fund benefited from individual stock selection. Consistent with our investment process, the Fund retained its historical bias toward higher quality companies with consistent, visible cash flows. However, we also invested in select lower quality companies that we believed were more levered to the early recovery stage of the commercial real estate cycle. Our strategy of investing on a relative-value basis helped the Fund avoid several underperforming stocks.
The Fund’s best-performing sectors on a relative basis were regional malls, net lease and self-storage companies. In the regional mall sector, an underweight position in General Growth Properties and an overweight in Simon Properties Group and Glimcher Realty contributed positively to the Fund’s relative performance. Within net lease, underweights to underperforming companies such as Getty Realty helped performance. The net lease sector is viewed as defensive and can be expected to lag during the growth part of a real estate cycle when investors seek out companies with more dynamic cash flow growth. In the self-storage sector, overweights in two small-cap stocks, CubeSmart and Sovran Self-Storage, contributed positively to results.
The Fund’s worst-performing sectors on a relative value basis were hotel Real Estate Investment Trusts (REITs) and hotel C-corporations. In hotel REITs, the Fund suffered from overweight positions in two small-cap REITs: Chesapeake Lodging Trust and Sunstone Hotel Investors. In the hotel C-corporation sector, the Fund’s weighting in non-index holding Marriott had a negative effect on performance. Although the Fund’s cash level on average was less than 1%, this was still a drag on performance in this period of appreciating REIT stocks.
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As mentioned above, we continued to invest in a broader universe of stocks than our benchmark index. During the period, this exposure comprised approximately 6% of the Fund’s assets and included real estate operating companies, international real estate stocks and infrastructure stocks with heavy real estate foundations. Additionally, we maintained a cautious approach to weightings in suburban office companies, believing the fundamental environment for central business district office companies was stronger.
Fiscal Year End Change
Effective November 1, 2011, the Funds’ fiscal year ends changed from October 31 to December 31. As a result, the Funds will prepare an annual report for the two-month period ended December 31, 2011. This change in fiscal year ends does not affect the objectives, investment strategies or portfolio management of the Funds.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk. Concentration in specific sectors or securities may involve greater risk and volatility than more diversified investments. Real Estate investments involve greater exposure to economic downturns and changes in real estate values, rents, property taxes, interest rates, and tax laws. Infrastructure-related securities involve more exposure to adverse economic, regulatory, political, legal, and other changes affecting such securities. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility.
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Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following four pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares and Class Y Shares, previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
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Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Global Infrastructure Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares at NAV | 0.97% | -0.60% | ||||||
Class A Shares at maximum Offering Price | -4.79% | -2.11% | ||||||
S&P Global Infrastructure Index** | 1.54% | -4.44% | ||||||
Lipper Specialty/Miscellaneous Funds Classification Average** | 0.82% | -2.75% | ||||||
Class C Shares | 0.37% | 13.93% | ||||||
Class R3 Shares | 0.36% | 14.28% | ||||||
Class I Shares | 1.28% | -0.37% | ||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares at NAV | -2.39% | -2.59% | ||||||
Class A Shares at maximum Offering Price | -7.99% | -4.10% | ||||||
Class C Shares | -3.01% | 11.41% | ||||||
Class R3 Shares | -3.12% | 11.74% | ||||||
Class I Shares | -2.18% | -2.38% | ||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.72% | 1.25% | ||||||
Class C Shares | 2.47% | 2.00% | ||||||
Class R3 Shares | 1.97% | 1.50% | ||||||
Class I Shares | 1.47% | 1.00% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.25%, 2.00%, 1.50% and 1.00%, respectively, for Class A, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Since inception returns for Class A and Class I Shares, and for the comparative index and Lipper classification average are from 12/17/07; since inception returns for Class C and Class R3 Shares are from 11/3/08. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. |
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Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
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Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Real Estate Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 9.94% | 0.55% | 12.80% | |||||||||
Class A Shares at maximum Offering Price | 3.63% | -0.64% | 12.13% | |||||||||
Morgan Stanley REIT Index* | 10.59% | -1.11% | 10.99% | |||||||||
Lipper Real Estate Funds Classification Average* | 9.84% | -1.38% | 10.50% | |||||||||
Class B Shares w/o CDSC** | 9.18% | -0.20% | 11.97% | |||||||||
Class B Shares w/CDSC** | 4.18% | -0.34% | 11.97% | |||||||||
Class C Shares | 9.13% | -0.19% | 11.96% | |||||||||
Class R3 Shares | 9.68% | 0.31% | 12.60% | |||||||||
Class I Shares | 10.24% | 0.80% | 13.08% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 1.12% | -0.82% | 10.98% | |||||||||
Class A Shares at maximum Offering Price | -4.68% | -1.99% | 10.32% | |||||||||
Class B Shares w/o CDSC** | 0.33% | -1.57% | 10.15% | |||||||||
Class B Shares w/CDSC** | -4.60% | -1.71% | 10.15% | |||||||||
Class C Shares | 0.37% | -1.57% | 10.15% | |||||||||
Class R3 Shares | 0.87% | -1.07% | 10.77% | |||||||||
Class I Shares | 1.37% | -0.58% | 11.26% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.29% | |||
Class B Shares | 2.04% | |||
Class C Shares | 2.04% | |||
Class R3 Shares | 1.54% | |||
Class I Shares | 1.04% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
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Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
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Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen Global Infrastructure Fund
Portfolio Allocation1
Nuveen Real Estate Securities Fund
Portfolio Allocation3
| Portfolio Composition1 | ||||
| Utilities | 46.4% | |||
| Industrials | 32.5% | |||
| Energy | 11.0% | |||
| Telecommunication Services | 6.0% | |||
| Short-Term Investments | 1.4% | |||
| Other | 2.7% | |||
| Portfolio Composition3 | ||||
| Apartments | 18.1% | |||
| Malls | 16.9% | |||
| Office | 15.7% | |||
| Health Care | 8.6% | |||
| Industrials | 7.6% | |||
| Self Storage | 6.9% | |||
| Community Centers | 6.9% | |||
| Diversified | 6.4% | |||
| Private Real Estate Company4 | –% | |||
Short-Term Investments | 1.0% | |||
| Other | 11.9% | |||
| Top Five Common Stock Holdings2 | ||||
| Enbridge | 5.3% | |||
| American Tower, Class A | 3.7% | |||
| National Grid – ADR | 3.4% | |||
| Transurban Group | 3.1% | |||
| Energias do Brasil | 3.0% | |||
| Country Allocation1 | ||||
| United States | 28.3% | |||
| United Kingdom | 9.3% | |||
| Canada | 9.3% | |||
| Brazil | 8.8% | |||
| Australia | 8.6% | |||
| Hong Kong | 8.1% | |||
| Singapore | 6.0% | |||
| Italy | 3.1% | |||
| Other | 18.5% | |||
| Top Five Common Stock Holdings2 | ||||
| Simon Property Group – REIT | 11.6% | |||
| Equity Residential Properties Trust – REIT | 5.3% | |||
| Public Storage – REIT | 5.2% | |||
| Boston Properties – REIT | 4.7% | |||
| Avalonbay Communities – REIT | 4.2% | |||
| 1 | As a percentage of total investments as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 3 | As a percentage of total investments (excluding investments purchased with collateral from securities lending) as of October 31, 2011. Holdings are subject to change. |
| 4 | Rounds to less than 0.1%. |
| 16 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Global Infrastructure Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 911.60 | $ | 909.70 | $ | 906.80 | $ | 913.00 | $ | 1,018.90 | $ | 1,015.12 | $ | 1,017.64 | $ | 1,020.16 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 6.02 | $ | 9.63 | $ | 7.21 | $ | 4.82 | $ | 6.36 | $ | 10.16 | $ | 7.63 | $ | 5.09 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.25%, 2.00%, 1.50%, and 1.00% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Real Estate Securities Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 952.30 | $ | 949.30 | $ | 948.90 | $ | 951.20 | $ | 953.70 | $ | 1,018.60 | $ | 1,014.82 | $ | 1,014.82 | $ | 1,017.34 | $ | 1,019.86 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.45 | $ | 10.12 | $ | 10.12 | $ | 7.67 | $ | 5.22 | $ | 6.67 | $ | 10.46 | $ | 10.46 | $ | 7.93 | $ | 5.40 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.31%, 2.06%, 2.06%, 1.56% and 1.06% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 17 |
Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Nuveen Global Infrastructure Fund (formerly First American Global Infrastructure Fund)
Nuveen Real Estate Securities Fund (formerly First American Real Estate Securities Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Nuveen Global Infrastructure Fund (formerly First American Global Infrastructure Fund) and Nuveen Real Estate Securities Fund (formerly First American Real Estate Securities Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the “Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen Global Infrastructure Fund (formerly First American Global Infrastructure Fund) and Nuveen Real Estate Securities Fund (formerly First American Real Estate Securities Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| 18 | Nuveen Investments |
Nuveen Global Infrastructure Fund
(formerly known as First American Global Infrastructure Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 99.0% | ||||||||||||||
Australia – 8.6% | ||||||||||||||
| 746,227 | APA Group | $ | 3,403,148 | |||||||||||
| 496,619 | Asciano Group | 793,901 | ||||||||||||
| 598,349 | Australian Infrastructure Fund | 1,187,880 | ||||||||||||
| 549,344 | DUET Group | 957,379 | ||||||||||||
| 99,691 | Macquarie Atlas Roads Group — | 147,624 | ||||||||||||
| 569,081 | MAp Group | 2,030,638 | ||||||||||||
| 62,638 | QR National | 216,412 | ||||||||||||
| 245,462 | SP AusNet — ¡ | 255,939 | ||||||||||||
| 735,165 | Spark Infrastructure Group | 936,662 | ||||||||||||
| 988,221 | Transurban Group | 5,420,856 | ||||||||||||
Total Australia | 15,350,439 | |||||||||||||
Austria – 1.1% | ||||||||||||||
| 6,611 | Flughafen Wien | 297,142 | ||||||||||||
| 2,598 | Verbund AG, Class A | 75,441 | ||||||||||||
| 54,606 | Oesterreichische Post | 1,646,896 | ||||||||||||
Total Austria | 2,019,479 | |||||||||||||
Belgium – 0.2% | ||||||||||||||
| 9,138 | Elia System Operator | 370,815 | ||||||||||||
Brazil – 8.8% | ||||||||||||||
| 105,302 | Companhia de Concessoes Rodoviarias | 2,902,345 | ||||||||||||
| 42,275 | Companhia de Gas de Sao Paulo, Class A | 864,288 | ||||||||||||
| 34,921 | Companhia de Saneamento Basico de Estado de Sao Paulo – ADR | 1,894,813 | ||||||||||||
| 7,282 | Companhia de Saneamento de Minas Gerais – ADR | 136,152 | ||||||||||||
| 9,574 | Companhia de Transmissao de Energia Electrica Paulista | 276,092 | ||||||||||||
| 7,574 | Companhia Energetica do Ceara-COELCE, Class A | 153,081 | ||||||||||||
| 45,945 | Companhia Paranaense de Energia-Copel – ADR | 927,170 | ||||||||||||
| 10,714 | CPFL Energia – ADR | 278,457 | ||||||||||||
| 68,092 | EcoRodovias Infraestructura e Logistica | 513,610 | ||||||||||||
| 242,191 | Energias do Brasil | 5,236,410 | ||||||||||||
| 78,599 | Santos Brasil Participacoes ¡ | 1,165,125 | ||||||||||||
| 96,584 | Wilson Sons – BDR ¡ | 1,383,910 | ||||||||||||
Total Brazil | 15,731,453 | |||||||||||||
Canada – 9.3% | ||||||||||||||
| 167,215 | Algonquin Power & Utilities | 939,457 | ||||||||||||
| 27,597 | ATCO, Class I ¡ | 1,685,583 | ||||||||||||
| 20,707 | Brookfield Renewable Power Fund | 567,352 | ||||||||||||
| 22,064 | Emera | 724,509 | ||||||||||||
| 268,790 | Enbridge | 9,329,701 | ||||||||||||
| 2,869 | Just Energy | 30,971 | ||||||||||||
| 4,868 | Keyera | 222,070 | ||||||||||||
| 35,766 | Pembina Pipeline | 973,495 | ||||||||||||
| 31,393 | TransCanada | 1,351,155 | ||||||||||||
| 45,535 | Veresen | 658,299 | ||||||||||||
| 3,957 | Westshore Terminals Investment | 96,508 | ||||||||||||
Total Canada | 16,579,100 | |||||||||||||
| Nuveen Investments | 19 |
Portfolio of Investments
Nuveen Global Infrastructure Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Chile – 1.1% | ||||||||||||||
| 215,669 | Empresa Electrica Del Norte Grande | $ | 589,717 | |||||||||||
| 29,996 | Empresa Nacional de Electrcidad – ADR | 1,447,007 | ||||||||||||
Total Chile | 2,036,724 | |||||||||||||
China – 0.6% | ||||||||||||||
| 1,606,845 | China Suntien Green Energy, Class H | 365,439 | ||||||||||||
| 83,532 | ENN Energy Holdings | 301,845 | ||||||||||||
| 573,150 | Zhejiang Expressway, Class H | 376,946 | ||||||||||||
Total China | 1,044,230 | |||||||||||||
Czech Republic – 0.3% | ||||||||||||||
| 12,440 | CEZ | 526,037 | ||||||||||||
Finland – 0.5% | ||||||||||||||
| 34,440 | Fortum Oyj | 838,207 | ||||||||||||
France – 2.2% | ||||||||||||||
| 7,836 | Aeroports de Paris | 615,222 | ||||||||||||
| 11,762 | Electricite de France | 352,009 | ||||||||||||
| 321,147 | Groupe Eurotunnel | 2,892,871 | ||||||||||||
| 320 | Rubis | 18,185 | ||||||||||||
Total France | 3,878,287 | |||||||||||||
Germany – 2.5% | ||||||||||||||
| 25,813 | E.ON | 622,480 | ||||||||||||
| 42,606 | Fraport Frankfurt Airport | 2,682,552 | ||||||||||||
| 37,053 | Hamburger Hafen und Logistik | 1,139,207 | ||||||||||||
Total Germany | 4,444,239 | |||||||||||||
Hong Kong – 8.1% | ||||||||||||||
| 557,394 | Beijing Capital International Airport, Class H | 250,298 | ||||||||||||
| 138,507 | Beijing Enterprises Holdings | 766,481 | ||||||||||||
| 592,846 | Cheung Kong Infrastructure Holdings | 3,175,708 | ||||||||||||
| 3,315,664 | China Everbright International | 957,251 | ||||||||||||
| 431,053 | China Merchants Holdings International | 1,330,113 | ||||||||||||
| 27,325 | China Resources Gas Group | 39,702 | ||||||||||||
| 146,820 | CLP Holdings | 1,307,892 | ||||||||||||
| 223,120 | Cosco Pacific | 310,454 | ||||||||||||
| 823,824 | Hong Kong and China Gas | 1,857,374 | ||||||||||||
| 556,032 | Hopewell Highway Infrastructure | 306,698 | ||||||||||||
| 782,939 | MTR | 2,527,309 | ||||||||||||
| 182,131 | Power Assets Holdings | 1,383,979 | ||||||||||||
| 457,804 | Towngas China | 246,270 | ||||||||||||
Total Hong Kong | 14,459,529 | |||||||||||||
India – 1.0% | ||||||||||||||
| 20,587 | GAIL India – GDR ¡ | 1,083,905 | ||||||||||||
| 354,650 | Power Grid | 759,932 | ||||||||||||
Total India | 1,843,837 | |||||||||||||
Italy – 3.1% | ||||||||||||||
| 258,412 | Atlantia | 3,935,964 | ||||||||||||
| 23,586 | Autostrada Torino-Milano | 246,682 | ||||||||||||
| 20 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Italy (continued) | ||||||||||||||
| 538,950 | Hera | $ | 881,229 | |||||||||||
| 65,330 | IREN | 79,021 | ||||||||||||
| 46,998 | Societa Iniziative Autostradali e Servizi | 388,421 | ||||||||||||
| 496 | Terna-Rete Elettrica Nationale | 1,906 | ||||||||||||
Total Italy | 5,533,223 | |||||||||||||
Japan – 1.6% | ||||||||||||||
| 89,779 | Japan Airport Terminal | 1,187,658 | ||||||||||||
| 56,755 | Kamigumi | 495,580 | ||||||||||||
| 273,626 | Tokyo Gas | 1,178,322 | ||||||||||||
Total Japan | 2,861,560 | |||||||||||||
Lebanon – 1.0% | ||||||||||||||
| 263,795 | Equatorial Energia | 1,725,496 | ||||||||||||
Luxembourg – 0.9% | ||||||||||||||
| 65,353 | SES | 1,669,218 | ||||||||||||
Mexico – 0.7% | ||||||||||||||
| 7,209 | Grupo Aeroportuario del Sureste – ADR | 415,238 | ||||||||||||
| 548,122 | OHL Mexico — | 851,775 | ||||||||||||
Total Mexico | 1,267,013 | |||||||||||||
Netherlands – 1.2% | ||||||||||||||
| 39,988 | Koninklijke Vopak | 2,061,063 | ||||||||||||
New Zealand – 1.8% | ||||||||||||||
| 258,045 | Auckland International Airport | 487,219 | ||||||||||||
| 675,072 | Infratil | 1,005,071 | ||||||||||||
| 208,627 | Port of Tauranga | 1,632,881 | ||||||||||||
Total New Zealand | 3,125,171 | |||||||||||||
Norway – 0.2% | ||||||||||||||
| 40,188 | Hafslund, Class B ¡ | 410,461 | ||||||||||||
Philippines – 0.6% | ||||||||||||||
| 601,764 | International Container Terminal Services | 776,915 | ||||||||||||
| 3,804,101 | Metro Pacific Investments | 289,299 | ||||||||||||
Total Philippines | 1,066,214 | |||||||||||||
Portugal – 0.1% | ||||||||||||||
| 40,977 | Brisa Auto-Estradas de Portugal | 139,467 | ||||||||||||
Singapore – 6.1% | ||||||||||||||
| 2,099,286 | CitySpring Infrastructure Trust | 625,411 | ||||||||||||
| 1,646,615 | ComfortDelGro | 1,824,554 | ||||||||||||
| 117,712 | Hyflux | 133,678 | ||||||||||||
| 579,866 | Parkway Life – REIT | 827,486 | ||||||||||||
| 435,775 | SembCorp Industries | 1,436,713 | ||||||||||||
| 722,142 | Singapore Airport Terminal Services | 1,407,024 | ||||||||||||
| 2,420,544 | Singapore Post | 1,971,055 | ||||||||||||
| 216,116 | Singapore Telecommunications | 546,409 | ||||||||||||
| 1,374,890 | SMRT | 2,013,285 | ||||||||||||
Total Singapore | 10,785,615 | |||||||||||||
| Nuveen Investments | 21 |
Portfolio of Investments
Nuveen Global Infrastructure Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Spain – 0.6% | ||||||||||||||
| 27,634 | Enagas | $ | 543,382 | |||||||||||
| 45,407 | Ferrovial | 577,126 | ||||||||||||
Total Spain | 1,120,508 | |||||||||||||
Switzerland – 0.4% | ||||||||||||||
| 1,775 | Flughafen Zuerich | 680,699 | ||||||||||||
United Kingdom – 9.4% | ||||||||||||||
| 882,087 | Centrica | 4,199,256 | ||||||||||||
| 119,295 | National Grid – ADR | 5,973,101 | ||||||||||||
| 34,350 | Pennon Group | 383,714 | ||||||||||||
| 87,095 | Scottish & Southern Energy | 1,881,787 | ||||||||||||
| 48,633 | Severn Trent | 1,183,752 | ||||||||||||
| 315,838 | United Utilities Group | 3,078,858 | ||||||||||||
Total United Kingdom | 16,700,468 | |||||||||||||
United States – 27.0% | ||||||||||||||
| 12,364 | American States Water | 431,998 | ||||||||||||
| 118,666 | American Tower, Class A — | 6,538,497 | ||||||||||||
| 12,736 | American Water Works | 388,830 | ||||||||||||
| 156,201 | Brookfield Infrastructure Partners | 3,919,083 | ||||||||||||
| 246 | California Water Service Group | 4,568 | ||||||||||||
| 38,392 | Chesapeake Utilities | 1,627,437 | ||||||||||||
| 10,764 | Consolidated Edison | 622,913 | ||||||||||||
| 89,111 | Crown Castle International — | 3,685,631 | ||||||||||||
| 42,240 | Dominion Resources | 2,179,162 | ||||||||||||
| 119,511 | El Paso | 2,988,970 | ||||||||||||
| 10,624 | Exelon | 471,599 | ||||||||||||
| 30,265 | ITC Holdings | 2,199,660 | ||||||||||||
| 2,925 | Kinder Morgan | 83,655 | ||||||||||||
| 21,777 | NextEra Energy | 1,228,223 | ||||||||||||
| 51,747 | NiSource | 1,143,091 | ||||||||||||
| 18,751 | Northeast Utilities — | 648,222 | ||||||||||||
| 12,507 | Northwest Natural Gas | 584,327 | ||||||||||||
| 46,229 | OGE Energy | 2,391,888 | ||||||||||||
| 32,143 | PPL | 944,040 | ||||||||||||
| 168,543 | Questar | 3,247,824 | ||||||||||||
| 5,993 | Republic Services | 170,561 | ||||||||||||
| 13,392 | Sempra Energy | 719,552 | ||||||||||||
| 692 | SJW | 16,110 | ||||||||||||
| 150,567 | Spectra Energy | 4,310,733 | ||||||||||||
| 32,734 | Standard Parking — | 575,791 | ||||||||||||
| 29,622 | UIL Holdings | 1,009,518 | ||||||||||||
| 8,536 | Unitil | 227,655 | ||||||||||||
| 58,613 | Waste Connections | 1,995,773 | ||||||||||||
| 68,611 | Wisconsin Energy | 2,225,055 | ||||||||||||
| 58,977 | Xcel Energy | 1,524,555 | ||||||||||||
Total United States | 48,104,921 | |||||||||||||
Total Common Stocks (cost $168,432,175) | 176,373,473 | |||||||||||||
| 22 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.4% | ||||||||||||||
Money Market Funds – 1.4% | ||||||||||||||
| 2,485,341 | State Street Institutional Liquid Reserves Fund, 0.150% W | $ | 2,485,341 | |||||||||||
Total Short-Term Investments (cost $2,485,341) | 2,485,341 | |||||||||||||
Total Investments (cost $170,917,516) – 100.4% | 178,858,814 | |||||||||||||
Other Assets Less Liabilities – (0.4)% | (775,783) | |||||||||||||
Net Assets – 100.0% | $ | 178,083,031 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| ¡ | For fair value measurement disclosure purposes, Common Stock categorized as Level 2. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ADR | American Depositary Receipt |
| BDR | Brazilian Depositary Receipt |
| GDR | Global Depositary Receipt |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 23 |
Portfolio of Investments
Nuveen Real Estate Securities Fund
(formerly known as First American Real Estate Securities Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 98.3% | ||||||||||||||
Apartments – 18.0% | ||||||||||||||
| 6,076 | Apartment Investment & Management, Class A – REIT | $ | 149,895 | |||||||||||
| 962,863 | Avalonbay Communities – REIT q | 128,725,155 | ||||||||||||
| 592,584 | BRE Properties – REIT q | 29,700,310 | ||||||||||||
| 808,899 | Camden Property Trust – REIT q | 49,051,635 | ||||||||||||
| 2,782,997 | Equity Residential Properties Trust – REIT q | 163,306,264 | ||||||||||||
| 383,226 | Essex Property Trust – REIT q | 54,709,344 | ||||||||||||
| 592,618 | Home Properties – REIT q | 34,905,200 | ||||||||||||
| 715,737 | Mid-America Apartment Communities – REIT q | 44,661,989 | ||||||||||||
| 593,417 | Post Properties – REIT q | 24,377,570 | ||||||||||||
| 1,349,289 | UDR – REIT | 33,637,775 | ||||||||||||
Total Apartments | 563,225,137 | |||||||||||||
Community Centers – 7.4% | ||||||||||||||
| 410,263 | Acadia Realty Trust – REIT q | 8,500,649 | ||||||||||||
| 1,293,729 | DDR – REIT q | 16,572,669 | ||||||||||||
| 1,759,038 | Equity One – REIT q | 30,167,502 | ||||||||||||
| 543,128 | Federal Realty Investment Trust – REIT q | 48,208,041 | ||||||||||||
| 984,265 | Kimco Realty – REIT q | 17,195,109 | ||||||||||||
| 2,470,803 | Kite Realty Group Trust – REIT q | 10,204,416 | ||||||||||||
| 1,516,912 | Ramco-Gershenson Properties Trust – REIT q | 14,638,201 | ||||||||||||
| 1,072,503 | Regency Centers – REIT q | 43,929,723 | ||||||||||||
| 176,214 | Saul Centers – REIT q | 6,315,510 | ||||||||||||
| 683,715 | Urstadt Biddle Properties, Class A – REIT | 12,197,476 | ||||||||||||
| 1,015,270 | Weingarten Realty Investors – REIT q | 23,564,417 | ||||||||||||
Total Community Centers | 231,493,713 | |||||||||||||
Diversified – 6.4% | ||||||||||||||
| 185,251 | American Assets Trust – REIT | 3,755,038 | ||||||||||||
| 495,017 | Colonial Properties Trust – REIT q | 10,038,945 | ||||||||||||
| 3,148,462 | Cousins Properties – REIT q | 20,653,911 | ||||||||||||
| 876,057 | Forest City Enterprises, Class A q — | 11,984,460 | ||||||||||||
| 1,478,428 | Vornado Realty Trust – REIT q | 122,428,622 | ||||||||||||
| 1,032,470 | Washington Real Estate Investment Trust – REIT q | 29,900,331 | ||||||||||||
Total Diversified | 198,761,307 | |||||||||||||
Health Care – 8.6% | ||||||||||||||
| 7,860 | Assisted Living Concepts, Class A | 111,690 | ||||||||||||
| 399,482 | Capital Senior Living — | 3,119,954 | ||||||||||||
| 1,038,042 | Cogdell Spencer – REIT | 4,193,690 | ||||||||||||
| 2,982,294 | HCP – REIT q | 118,844,416 | ||||||||||||
| 1,073,010 | Health Care – REIT q | 56,536,897 | ||||||||||||
| 256,607 | Healthcare Realty Trust – REIT q | 4,847,306 | ||||||||||||
| 159,261 | LTC Properties – REIT q | 4,516,642 | ||||||||||||
| 34,420 | OMEGA Healthcare Investors – REIT q | 611,299 | ||||||||||||
| 4,225,646 | Parkway Life – REIT | 6,030,123 | ||||||||||||
| 463,033 | Sabra Health Care – REIT | 4,755,349 | ||||||||||||
| 1,165,944 | Ventas – REIT q | 64,838,146 | ||||||||||||
Total Health Care | 268,405,512 | |||||||||||||
| 24 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Hotels – 4.1% | ||||||||||||||
| 14,377 | Chesapeake Lodging Trust – REIT | $ | 214,792 | |||||||||||
| 1,883,920 | Hersha Hospitality Trust – REIT q | 8,308,087 | ||||||||||||
| 5,555,203 | Host Hotels & Resorts – REIT q | 79,272,747 | ||||||||||||
| 99,878 | Hyatt Hotels, Class A q — | 3,714,463 | ||||||||||||
| 33,901 | LaSalle Hotel Properties – REIT q | 810,573 | ||||||||||||
| 922,830 | Pebblebrook Hotel Trust – REIT q | 17,561,455 | ||||||||||||
| 1,066,153 | RLJ Lodging Trust | 15,800,387 | ||||||||||||
| 50 | Strategic Hotels & Resorts – REIT — | 285 | ||||||||||||
| 3,973 | Summit Hotel Properties – REIT | 32,062 | ||||||||||||
| 532,686 | Sunstone Hotel Investors – REIT q — | 3,702,168 | ||||||||||||
Total Hotels | 129,417,019 | |||||||||||||
Industrials – 7.5% | ||||||||||||||
| 3,509,996 | DCT Industrial Trust – REIT q | 17,409,580 | ||||||||||||
| 873,378 | EastGroup Properties – REIT q | 38,088,015 | ||||||||||||
| 29 | First Potomac Realty Trust – REIT | 412 | ||||||||||||
| 303,364 | Mapletree Logistics Trust – REIT | 206,028 | ||||||||||||
| 3,791,695 | Prologis – REIT q | 112,840,843 | ||||||||||||
| 1,057,711 | PS Business Parks – REIT | 56,301,956 | ||||||||||||
| 341,863 | Stag Industrial – REIT q | 3,671,609 | ||||||||||||
| 554,866 | Terreno Realty – REIT q | 6,908,082 | ||||||||||||
Total Industrials | 235,426,525 | |||||||||||||
Infrastructure – 1.8% | ||||||||||||||
| 177,237 | American Tower, Class A — | 9,765,758 | ||||||||||||
| 1,338,059 | Brookfield Asset Management, Class A | 38,803,711 | ||||||||||||
| 477 | Hopewell Holdings | 1,239 | ||||||||||||
| 356,227 | Standard Parking — | 6,266,033 | ||||||||||||
Total Infrastucture | 54,836,741 | |||||||||||||
Malls – 16.3% | ||||||||||||||
| 292,687 | CBL & Associates Properties – REIT q | 4,501,526 | ||||||||||||
| 1,296,032 | General Growth Properties – REIT q | 19,051,671 | ||||||||||||
| 1,349,432 | Glimcher Realty Trust – REIT q | 12,360,797 | ||||||||||||
| 1,679,997 | Macerich – REIT q | 83,596,651 | ||||||||||||
| 2,781,573 | Simon Property Group – REIT q | 357,265,236 | ||||||||||||
| 433,888 | Taubman Centers – REIT q | 26,566,962 | ||||||||||||
| 964,470 | Westfield Group – REIT — | 7,764,328 | ||||||||||||
Total Malls | 511,107,171 | |||||||||||||
Manufactured Homes – 2.0% | ||||||||||||||
| 962,419 | Equity Lifestyle Properties – REIT q | 63,644,768 | ||||||||||||
Net Lease – 2.1% | ||||||||||||||
| 2,464,586 | National Retail Properties – REIT q | 67,159,969 | ||||||||||||
Office – 15.6% | ||||||||||||||
| 924,591 | Alexandria Real Estate Equities – REIT q | 61,106,219 | ||||||||||||
| 547,680 | BioMed Realty Trust – REIT q | 9,918,485 | ||||||||||||
| 1,451,250 | Boston Properties – REIT q | 143,659,237 | ||||||||||||
| 856,842 | Brandywine Realty Trust – REIT | 7,805,831 | ||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments
Nuveen Real Estate Securities Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Office – (continued) | ||||||||||||||
| 2,011,234 | Brookfield Properties | $ | 33,225,586 | |||||||||||
| 23,523 | Coresite Realty – REIT | 391,658 | ||||||||||||
| 354,560 | Corporate Office Properties Trust – REIT q | 8,598,080 | ||||||||||||
| 681,560 | Digital Realty Trust – REIT q | 42,481,635 | ||||||||||||
| 805,939 | Douglas Emmett – REIT q | 15,715,810 | ||||||||||||
| 1,135,984 | Duke Realty – REIT | 13,949,883 | ||||||||||||
| 624,816 | DuPont Fabros Technology – REIT q | 12,989,925 | ||||||||||||
| 569,168 | Franklin Street Properties – REIT | 7,228,433 | ||||||||||||
| 594,612 | Highwoods Properties – REIT q | 18,421,080 | ||||||||||||
| 210,393 | Hudson Pacific Properties – REIT q | 2,810,850 | ||||||||||||
| 831,068 | Liberty Property Trust – REIT q | 26,594,176 | ||||||||||||
| 797,210 | Mack-Cali Realty – REIT q | 22,369,713 | ||||||||||||
| 47,801 | Mission West Properties – REIT | 371,892 | ||||||||||||
| 13,121 | Parkway Properties – REIT | 168,605 | ||||||||||||
| 136,116 | Piedmont Office Realty Trust, Class A – REIT q | 2,311,250 | ||||||||||||
| 860,953 | SL Green Realty – REIT q | 59,397,147 | ||||||||||||
Total Office | 489,515,495 | |||||||||||||
Real Estate Service Provider – 0.1% | ||||||||||||||
| 202,481 | HFF q — | 2,227,291 | ||||||||||||
Self Storage – 6.9% | ||||||||||||||
| 2,210,436 | Cubesmart – REIT q | 21,684,377 | ||||||||||||
| 95,034 | Extra Space Storage – REIT q | 2,141,116 | ||||||||||||
| 1,249,456 | Public Storage – REIT q | 161,242,297 | ||||||||||||
| 696,196 | Sovran Self Storage – REIT q | 30,771,863 | ||||||||||||
Total Self Storage | 215,839,653 | |||||||||||||
Student Housing – 1.5% | ||||||||||||||
| 1,176,756 | American Campus Communities – REIT q | 45,811,111 | ||||||||||||
Total Common Stocks (cost $2,532,378,964) | 3,076,871,412 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
PREFERRED STOCKS – 0.1% | ||||||||||||||
Hotels – 0.1% | ||||||||||||||
| 188,955 | Summit Hotel Properties – REIT — | $ | 4,657,741 | |||||||||||
Total Preferred Stocks (cost $4,723,875) | 4,657,741 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
Private Real Estate Company – 0.0% | ||||||||||||||
| 34,331 | Newcastle Investment Holdings — | $ | 29,525 | |||||||||||
Total Private Real Estate Company (cost $150,149) | 29,525 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 45.7% | ||||||||||||||
Money Market Funds – 45.7% | ||||||||||||||
| 1,428,974,835 | Mount Vernon Securities Lending Prime Portfolio, 2.000% W † | $ | 1,428,974,835 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,428,974,835) | 1,428,974,835 | |||||||||||||
| 26 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.0% | ||||||||||||||
Money Market Funds – 1.0% | ||||||||||||||
| 32,560,288 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 32,560,288 | |||||||||||
Total Short-Term Investments (cost $32,560,288) | 32,560,288 | |||||||||||||
Total Investments (cost $3,998,788,111) – 145.1% | 4,543,093,801 | |||||||||||||
Other Assets Less Liabilities – (45.1)% | (1,412,913,934) | |||||||||||||
Net Assets – 100.0% | $ | 3,130,179,867 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
 | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 27 |
Statement of Assets & Liabilities
October 31, 2011 (all dollars and shares are rounded to thousands (000), except for per share data)
| Global Infrastructure | Real Estate Securities | |||||||
Assets | ||||||||
Investments, at value (cost $170,918 and $2,569,813, respectively) | $ | 178,859 | $ | 3,114,119 | ||||
Investments purchased with collateral from securities lending (at cost, which approximates value) | — | 1,428,975 | ||||||
Cash denominated in foreign currencies (cost $540 and $–, respectively) | 578 | — | ||||||
Receivables: | ||||||||
Dividends | 190 | 1,266 | ||||||
Due from broker | — | 97 | ||||||
Investments sold | 9,081 | 29,877 | ||||||
Reclaims | 42 | — | ||||||
Shares sold | 669 | 5,853 | ||||||
Other assets | 37 | 115 | ||||||
Total assets | 189,456 | 4,580,302 | ||||||
Liabilities | ||||||||
Cash overdraft | 1,092 | — | ||||||
Payables: | ||||||||
Collateral from securities lending program | — | 1,428,975 | ||||||
Investments purchased | 9,688 | 12,914 | ||||||
Shares redeemed | 272 | 4,301 | ||||||
Accrued expenses: | ||||||||
Management fees | 41 | 1,743 | ||||||
12b-1 distribution and service fees | 20 | 216 | ||||||
Other | 260 | 1,973 | ||||||
Total liabilities | 11,373 | 1,450,122 | ||||||
Net assets | $ | 178,083 | $ | 3,130,180 | ||||
Class A Shares | ||||||||
Net assets | $ | 54,697 | $ | 732,181 | ||||
Shares outstanding | 6,164 | 38,856 | ||||||
Net asset value per share | $ | 8.87 | $ | 18.84 | ||||
Offering price per share (net asset value per share plus maximum sales | $ | 9.41 | $ | 19.99 | ||||
Class B Shares | ||||||||
Net assets | N/A | $ | 2,269 | |||||
Shares outstanding | N/A | 123 | ||||||
Net asset value and offering price per share | N/A | $ | 18.42 | |||||
Class C Shares | ||||||||
Net assets | $ | 10,674 | $ | 60,812 | ||||
Shares outstanding | 1,219 | 3,294 | ||||||
Net asset value and offering price per share | $ | 8.75 | $ | 18.46 | ||||
Class R3 Shares(1) | ||||||||
Net assets | $ | 15 | $ | 63,335 | ||||
Shares outstanding | 2 | 3,321 | ||||||
Net asset value and offering price per share | $ | 8.95 | $ | 19.07 | ||||
Class I Shares(1) | ||||||||
Net assets | $ | 112,697 | $ | 2,271,583 | ||||
Shares outstanding | 12,630 | 119,213 | ||||||
Net asset value and offering price per share | $ | 8.92 | $ | 19.05 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 165,760 | $ | 2,638,442 | ||||
Undistributed (Over-distribution of) net investment income | 2,516 | (24 | ) | |||||
Accumulated net realized gain (loss) | 1,823 | (52,544 | ) | |||||
Net unrealized appreciation (depreciation) | 7,984 | 544,306 | ||||||
Net assets | $ | 178,083 | $ | 3,130,180 | ||||
Authorized shares | 2 billion | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | ||||
| N/A – | Global Infrastructure does not offer Class B Shares. |
| (1) – | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 28 | Nuveen Investments |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| Global Infrastructure | Real Estate Securities | |||||||
Investment Income | ||||||||
Dividend and interest income from unaffiliated investments (net of foreign tax withheld of $571 and $208, respectively) | $ | 6,128 | $ | 57,518 | ||||
Interest income from affiliated investments(1) | — | 4 | ||||||
Securities lending income | — | 1,045 | ||||||
Total investment income | 6,128 | 58,567 | ||||||
Expenses | ||||||||
Management fees | 1,636 | 23,905 | ||||||
12b-1 service fees – Class A | 154 | 1,897 | ||||||
12b-1 distribution and service fees – Class B | N/A | 27 | ||||||
12b-1 distribution and service fees – Class C | 103 | 625 | ||||||
12b-1 distribution and service fees – Class R3(2) | — | 304 | ||||||
Administration fees(1) | 64 | 943 | ||||||
Shareholders’ servicing agent fees and expenses | 245 | 3,418 | ||||||
Custodian’s fees and expenses | 292 | 426 | ||||||
Directors’ fees and expenses | 8 | 69 | ||||||
Professional fees | 36 | 31 | ||||||
Shareholders’ reports – printing and mailing expenses | 54 | 1,081 | ||||||
Federal and state registration fees | 66 | 231 | ||||||
Other expenses | 14 | 60 | ||||||
Total expenses before expense reimbursement | 2,672 | 33,017 | ||||||
Expense reimbursement | (671 | ) | (398 | ) | ||||
Net expenses | 2,001 | 32,619 | ||||||
Net investment income (loss) | 4,127 | 25,948 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | 2,172 | 46,487 | ||||||
Redemptions in-kind | — | 14,783 | ||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (5,535 | ) | 178,253 | |||||
Net realized and unrealized gain (loss) | (3,363 | ) | 239,523 | |||||
Net increase (decrease) in net assets from operations | $ | 764 | $ | 265,471 | ||||
| N/A | – Global Infrastructure does not offer Class B Shares. |
| (1) | – For the period November 1, 2010 through December 31, 2010. |
| (2) | – Effective January 18, 2011, Class R Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares. |
See accompanying notes to financial statements.
| Nuveen Investments | 29 |
Statement of Changes in Net Assets (all dollars are rounded to thousands (000))
| Global Infrastructure | Real Estate Securities | |||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 4,127 | $ | 2,181 | $ | 25,948 | $ | 35,643 | ||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments and foreign currency | 2,172 | 9,624 | 46,487 | 252,012 | ||||||||||||
Redemptions in-kind | — | — | 14,783 | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (5,535 | ) | 11,030 | 178,253 | 278,283 | |||||||||||
Net increase (decrease) in net assets from operations | 764 | 22,835 | 265,471 | 565,938 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (1,049 | ) | (422 | ) | (8,736 | ) | (11,390 | ) | ||||||||
Class B | N/A | N/A | (19 | ) | (53 | ) | ||||||||||
Class C | (111 | ) | (45 | ) | (443 | ) | (629 | ) | ||||||||
Class R3(1) | — | — | (609 | ) | (1,183 | ) | ||||||||||
Class I(1) | (1,697 | ) | (658 | ) | (26,418 | ) | (29,400 | ) | ||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A | (3,081 | ) | — | (9,657 | ) | — | ||||||||||
Class B | N/A | N/A | (32 | ) | — | |||||||||||
Class C | (460 | ) | — | (839 | ) | — | ||||||||||
Class R3(1) | — | — | (832 | ) | — | |||||||||||
Class I(1) | (4,487 | ) | — | (28,893 | ) | — | ||||||||||
Decrease in net assets from distributions to shareholders | (10,885 | ) | (1,125 | ) | (76,478 | ) | (42,655 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 77,226 | 98,672 | 1,446,746 | 1,423,765 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 7,872 | 673 | 59,683 | 33,035 | ||||||||||||
| 85,098 | 99,345 | 1,506,429 | 1,456,800 | |||||||||||||
Cost of shares redeemed | (50,579 | ) | (26,906 | ) | (937,711 | ) | (573,781 | ) | ||||||||
Cost of redemptions in-kind | — | — | (48,375 | ) | — | |||||||||||
Net increase (decrease) in net assets from Fund share transactions | 34,519 | 72,439 | 520,343 | 883,019 | ||||||||||||
Net increase (decrease) in net assets | 24,398 | 94,149 | 709,336 | 1,406,302 | ||||||||||||
Net assets at the beginning of period | 153,685 | 59,536 | 2,420,844 | 1,014,542 | ||||||||||||
Net assets at the end of period | $ | 178,083 | $ | 153,685 | $ | 3,130,180 | $ | 2,420,844 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 2,516 | $ | 2,120 | $ | (24 | ) | $ | (12 | ) | ||||||
| N/A | – Global Infrastructure does not offer Class B Shares. |
| (1) | – Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 30 | Nuveen Investments |
Financial Highlights
| Nuveen Investments | 31 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| GLOBAL INFRASTRUCTURE | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/07) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.42 | $ | .20 | $ | (.11 | ) | $ | .09 | $ | (.16 | ) | $ | (.48 | ) | $ | (.64 | ) | $ | 8.87 | ||||||||||||
2010 | 7.80 | .16 | 1.58 | 1.74 | (.12 | ) | — | (.12 | ) | 9.42 | ||||||||||||||||||||||
2009 | 6.43 | .16 | 1.29 | 1.45 | (.08 | ) | — | (.08 | ) | 7.80 | ||||||||||||||||||||||
2008(f) | 10.00 | .05 | (3.62 | ) | (3.57 | ) | — | — | — | 6.43 | ||||||||||||||||||||||
Class C (11/08) | ||||||||||||||||||||||||||||||||
2011 | 9.32 | .14 | (.12 | ) | .02 | (.11 | ) | (.48 | ) | (.59 | ) | 8.75 | ||||||||||||||||||||
2010 | 7.75 | .09 | 1.57 | 1.66 | (.09 | ) | — | (.09 | ) | 9.32 | ||||||||||||||||||||||
2009(g) | 6.48 | .11 | 1.24 | 1.35 | (.08 | ) | — | (.08 | ) | 7.75 | ||||||||||||||||||||||
Class R3 (11/08)(e) | ||||||||||||||||||||||||||||||||
2011 | 9.40 | .05 | (.02 | ) | .03 | — | (.48 | ) | (.48 | ) | 8.95 | |||||||||||||||||||||
2010 | 7.78 | .13 | 1.59 | 1.72 | (.10 | ) | — | (.10 | ) | 9.40 | ||||||||||||||||||||||
2009(g) | 6.48 | .14 | 1.24 | 1.38 | (.08 | ) | — | (.08 | ) | 7.78 | ||||||||||||||||||||||
Class I (12/07)(e) | ||||||||||||||||||||||||||||||||
2011 | 9.46 | .23 | (.12 | ) | .11 | (.17 | ) | (.48 | ) | (.65 | ) | 8.92 | ||||||||||||||||||||
2010 | 7.82 | .18 | 1.59 | 1.77 | (.13 | ) | — | (.13 | ) | 9.46 | ||||||||||||||||||||||
2009 | 6.43 | .17 | 1.30 | 1.47 | (.08 | ) | — | (.08 | ) | 7.82 | ||||||||||||||||||||||
2008(f) | 10.00 | .16 | (3.73 | ) | (3.57 | ) | — | — | — | 6.43 | ||||||||||||||||||||||
| 32 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| .97 | % | $ | 54,697 | 1.62 | % | 1.86 | % | 1.25 | % | 2.24 | % | 273 | % | |||||||||||||
| 22.56 | 57,594 | 1.88 | 1.30 | 1.25 | 1.93 | 314 | ||||||||||||||||||||
| 22.76 | 19,901 | 2.47 | 1.12 | 1.25 | 2.34 | 299 | ||||||||||||||||||||
| (35.70 | ) | 4,022 | 4.16 | * | (2.11 | )* | 1.25 | * | .80 | * | 304 | |||||||||||||||
| .37 | 10,674 | 2.38 | 1.14 | 2.00 | 1.53 | 273 | ||||||||||||||||||||
| 21.62 | 8,103 | 2.63 | .51 | 2.00 | 1.14 | 314 | ||||||||||||||||||||
| 21.00 | 3,034 | 3.22 | * | .37 | * | 2.00 | * | 1.59 | * | 299 | ||||||||||||||||
| .36 | 15 | 2.05 | (.03 | ) | 1.50 | .55 | 273 | |||||||||||||||||||
| 22.27 | 8 | 2.13 | .91 | 1.50 | 1.54 | 314 | ||||||||||||||||||||
| 21.48 | 6 | 2.72 | * | .93 | * | 1.50 | * | 2.15 | * | 299 | ||||||||||||||||
| 1.28 | 112,697 | 1.38 | 2.12 | 1.00 | 2.51 | 273 | ||||||||||||||||||||
| 22.92 | 87,980 | 1.63 | 1.50 | 1.00 | 2.13 | 314 | ||||||||||||||||||||
| 23.14 | 36,595 | 2.22 | 1.35 | 1.00 | 2.57 | 299 | ||||||||||||||||||||
| (35.70 | ) | 17,221 | 3.90 | * | (.73 | )* | .99 | * | 2.18 | * | 304 | |||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| (f) | For the period December 17, 2007 (commencement of operations) through October 31, 2008. |
| (g) | For the period November 3, 2008 (commencement of operations) through October 31, 2009. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 33 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
REAL ESTATE SECURITIES | ||||||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Return of Capital | Total | Ending Net Asset Value | |||||||||||||||||||||||||||
Class A (9/95) | ||||||||||||||||||||||||||||||||||||
2011 | $ | 17.58 | $ | .14 | $ | 1.58 | $ | 1.72 | $ | (.22 | ) | $ | (.24 | ) | $ | — | $ | (.46 | ) | $ | 18.84 | |||||||||||||||
2010 | 12.44 | .32 | 5.20 | 5.52 | (.38 | ) | — | — | (.38 | ) | 17.58 | |||||||||||||||||||||||||
2009 | 12.67 | .41 | (.16 | ) | .25 | (.34 | ) | — | (.14 | ) | (.48 | ) | 12.44 | |||||||||||||||||||||||
2008 | 23.99 | .60 | (8.78 | ) | (8.18 | ) | (.40 | ) | (2.74 | ) | — | (3.14 | ) | 12.67 | ||||||||||||||||||||||
2007 | 26.49 | .47 | (.24 | ) | .23 | (.36 | ) | (2.37 | ) | — | (2.73 | ) | 23.99 | |||||||||||||||||||||||
Class B (9/95) | ||||||||||||||||||||||||||||||||||||
2011 | 17.18 | (.01 | ) | 1.57 | 1.56 | (.11 | ) | (.21 | ) | — | (.32 | ) | 18.42 | |||||||||||||||||||||||
2010 | 12.17 | .21 | 5.07 | 5.28 | (.27 | ) | — | — | (.27 | ) | 17.18 | |||||||||||||||||||||||||
2009 | 12.39 | .36 | (.19 | ) | .17 | (.25 | ) | — | (.14 | ) | (.39 | ) | 12.17 | |||||||||||||||||||||||
2008 | 23.53 | .46 | (8.60 | ) | (8.14 | ) | (.26 | ) | (2.74 | ) | — | (3.00 | ) | 12.39 | ||||||||||||||||||||||
2007 | 26.08 | .27 | (.22 | ) | .05 | (.23 | ) | (2.37 | ) | — | (2.60 | ) | 23.53 | |||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||
2011 | 17.23 | (.01 | ) | 1.56 | 1.55 | (.08 | ) | (.24 | ) | — | (.32 | ) | 18.46 | |||||||||||||||||||||||
2010 | 12.21 | .19 | 5.12 | 5.31 | (.29 | ) | — | — | (.29 | ) | 17.23 | |||||||||||||||||||||||||
2009 | 12.44 | .34 | (.17 | ) | .17 | (.26 | ) | — | (.14 | ) | (.40 | ) | 12.21 | |||||||||||||||||||||||
2008 | 23.62 | .45 | (8.63 | ) | (8.18 | ) | (.26 | ) | (2.74 | ) | — | (3.00 | ) | 12.44 | ||||||||||||||||||||||
2007 | 26.17 | .26 | (.21 | ) | .05 | (.23 | ) | (2.37 | ) | — | (2.60 | ) | 23.62 | |||||||||||||||||||||||
Class R3 (9/01)(e) | ||||||||||||||||||||||||||||||||||||
2011 | 17.79 | .09 | 1.61 | 1.70 | (.16 | ) | (.26 | ) | — | (.42 | ) | 19.07 | ||||||||||||||||||||||||
2010 | 12.57 | .31 | 5.24 | 5.55 | (.33 | ) | — | — | (.33 | ) | 17.79 | |||||||||||||||||||||||||
2009 | 12.79 | .39 | (.16 | ) | .23 | (.31 | ) | — | (.14 | ) | (.45 | ) | 12.57 | |||||||||||||||||||||||
2008 | 24.20 | .54 | (8.85 | ) | (8.31 | ) | (.36 | ) | (2.74 | ) | — | (3.10 | ) | 12.79 | ||||||||||||||||||||||
2007 | 26.72 | .38 | (.21 | ) | .17 | (.32 | ) | (2.37 | ) | — | (2.69 | ) | 24.20 | |||||||||||||||||||||||
Class I (6/95)(e) | ||||||||||||||||||||||||||||||||||||
2011 | 17.77 | .19 | 1.60 | 1.79 | (.24 | ) | (.27 | ) | — | (.51 | ) | 19.05 | ||||||||||||||||||||||||
2010 | 12.57 | .36 | 5.26 | 5.62 | (.42 | ) | — | — | (.42 | ) | 17.77 | |||||||||||||||||||||||||
2009 | 12.79 | .47 | (.19 | ) | .28 | (.36 | ) | — | (.14 | ) | (.50 | ) | 12.57 | |||||||||||||||||||||||
2008 | 24.18 | .64 | (8.84 | ) | (8.20 | ) | (.45 | ) | (2.74 | ) | — | (3.19 | ) | 12.79 | ||||||||||||||||||||||
2007 | 26.67 | .53 | (.24 | ) | .29 | (.41 | ) | (2.37 | ) | — | (2.78 | ) | 24.18 | |||||||||||||||||||||||
| 34 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 9.94 | % | $ | 732,181 | 1.28 | % | .73 | % | 1.27 | % | .74 | % | 103 | % | |||||||||||||
| 44.82 | 686,148 | 1.24 | 2.04 | 1.24 | 2.04 | 133 | ||||||||||||||||||||
| 2.82 | 287,493 | 1.27 | 3.81 | 1.27 | 3.81 | 117 | ||||||||||||||||||||
| (37.71 | ) | 133,162 | 1.23 | 3.31 | 1.23 | 3.31 | 150 | |||||||||||||||||||
| .78 | 203,101 | 1.22 | 1.87 | 1.22 | 1.87 | 210 | ||||||||||||||||||||
| 9.18 | 2,269 | 2.03 | (.04 | ) | 2.02 | (.03 | ) | 103 | ||||||||||||||||||
| 43.66 | 3,005 | 1.99 | 1.42 | 1.99 | 1.42 | 133 | ||||||||||||||||||||
| 2.13 | 2,693 | 2.02 | 3.57 | 2.02 | 3.57 | 117 | ||||||||||||||||||||
| (38.18 | ) | 3,276 | 1.98 | 2.57 | 1.98 | 2.57 | 150 | |||||||||||||||||||
| — | 7,391 | 1.97 | 1.12 | 1.97 | 1.12 | 210 | ||||||||||||||||||||
| 9.13 | 60,812 | 2.04 | (.05 | ) | 2.02 | (.04 | ) | 103 | ||||||||||||||||||
| 43.76 | 52,732 | 1.99 | 1.26 | 1.99 | 1.26 | 133 | ||||||||||||||||||||
| 2.09 | 17,632 | 2.02 | 3.26 | 2.02 | 3.26 | 117 | ||||||||||||||||||||
| (38.19 | ) | 11,458 | 1.98 | 2.56 | 1.98 | 2.56 | 150 | |||||||||||||||||||
| .03 | 18,403 | 1.97 | 1.06 | 1.97 | 1.06 | 210 | ||||||||||||||||||||
| 9.68 | 63,335 | 1.54 | .49 | 1.52 | .50 | 103 | ||||||||||||||||||||
| 44.54 | 47,970 | 1.48 | 1.99 | 1.48 | 1.99 | 133 | ||||||||||||||||||||
| 2.62 | 46,382 | 1.52 | 3.61 | 1.52 | 3.61 | 117 | ||||||||||||||||||||
| (37.90 | ) | 22,813 | 1.48 | 3.01 | 1.48 | 3.01 | 150 | |||||||||||||||||||
| .52 | 18,493 | 1.47 | 1.52 | 1.47 | 1.52 | 210 | ||||||||||||||||||||
| 10.24 | 2,271,583 | 1.04 | .98 | 1.02 | .99 | 103 | ||||||||||||||||||||
| 45.16 | 1,630,989 | .99 | 2.29 | .99 | 2.29 | 133 | ||||||||||||||||||||
| 3.11 | 660,342 | 1.02 | 4.39 | 1.02 | 4.39 | 117 | ||||||||||||||||||||
| (37.56 | ) | 526,386 | .98 | 3.51 | .98 | 3.51 | 150 | |||||||||||||||||||
| 1.01 | 652,579 | .97 | 2.12 | .97 | 2.12 | 210 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 35 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000))
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”) known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the fund from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares were renamed Class R3 Shares and Class Y Shares were renamed Class I Shares.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Global Infrastructure Fund (“Global Infrastructure”) formerly known as First American Global Infrastructure Fund and Nuveen Real Estate Securities Fund (“Real Estate Securities”) formerly known as First American Real Estate Securities Fund (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
Global Infrastructure’s investment objective is long-term growth of capital and income. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in equity securities issued by U.S. and non-U.S. infrastructure-related companies that derive at least 50% of their revenues or profits from the ownership, development, construction, financing or operation of infrastructure assets or have at least 50% of the fair market value of their assets invested in infrastructure assets. The Fund will also invest at least 40% of its net assets in securities of foreign issuers and, in any case, will at least invest 30% of its net assets in such issuers. Up to 25% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Real Estate Securities’ investment objective is to provide above average current income and long-term appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in income-producing common stocks of publicly traded companies engaged in the real estate industry. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. The Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Each Fund may also invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Effective after the close of business on December 31, 2010, Real Estate Securities suspended offering its shares to new investors, except as noted in the Fund’s prospectus.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions
| 36 | Nuveen Investments |
on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in only limited volume in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange, which generally represents a transfer from a Level 1 to a Level 2 security. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds’ net asset value (NAV) is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Fund’s Board of Directors. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for Global Infrastructure and quarterly for Real Estate Securities. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
| Nuveen Investments | 37 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Real Estate Securities receives substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities must use estimates in reporting the character of their income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency exchange contracts, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively” on the Statement of Operations, when applicable.
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 2011.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
| 38 | Nuveen Investments |
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned. If the value of the securities on loan increases [such that the level of collateralization falls below 102%], additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM also received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Securities lending fees paid | $ | — | $ | 261 | ||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
| Nuveen Investments | 39 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| Global Infrastructure | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks* | $ | 170,389 | $ | 5,985 | $ | — | $ | 176,374 | ||||||||
Short-Term Investments | 2,485 | — | — | 2,485 | ||||||||||||
Total | $ | 172,874 | $ | 5,985 | $ | — | $ | 178,859 | ||||||||
| Real Estate Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 3,076,871 | $ | — | $ | — | $ | 3,076,871 | ||||||||
Preferred Stocks | 4,658 | — | — | 4,658 | ||||||||||||
Private Real Estate Company | — | — | 30 | 30 | ||||||||||||
Money Market Funds** | 1,428,975 | — | — | 1,428,975 | ||||||||||||
Short-Term Investments | 32,560 | — | — | 32,560 | ||||||||||||
Total | $ | 4,543,064 | $ | — | $ | 30 | $ | 4,543,094 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry breakdown of Common Stocks classified as Level 2. |
| ** | Represents the Fund’s investments purchased with collateral from securities lending. |
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| Real Estate Securities Level 3 Private Real Estate Company | ||||
Balance at the beginning of year | $ | 33 | ||
Gains (losses): | ||||
Net realized gains (losses) | (2 | ) | ||
Net change in unrealized appreciation (depreciation) | — | *** | ||
Purchases at cost | — | |||
Sales at proceeds | (1 | ) | ||
Net discounts (premiums) | — | |||
Transfers in to | — | |||
Transfers out of | — | |||
Balance at the end of year | $ | 30 | ||
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011 | $ | — | *** | |
| *** | Amount rounds to less than $1,000. |
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended October 31, 2011.
| 40 | Nuveen Investments |
4. Fund Shares
Transactions in Fund shares were as follows:
| Global Infrastructure | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,705 | $ | 24,728 | 4,927 | $ | 40,687 | ||||||||||
Class C | 480 | 4,393 | 541 | 4,512 | ||||||||||||
Class R3 (1) | 2 | 15 | — | — | ||||||||||||
Class I (1) | 5,251 | 48,090 | 6,355 | 53,473 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 428 | 3,809 | 44 | 372 | ||||||||||||
Class C | 52 | 459 | 4 | 40 | ||||||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | 403 | 3,604 | 31 | 261 | ||||||||||||
| 9,321 | 85,098 | 11,902 | 99,345 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,084 | ) | (27,917 | ) | (1,409 | ) | (11,596 | ) | ||||||||
Class C | (182 | ) | (1,637 | ) | (68 | ) | (567 | ) | ||||||||
Class R3 (1) | (1 | ) | (9 | ) | — | — | ||||||||||
Class I (1) | (2,322 | ) | (21,016 | ) | (1,766 | ) | (14,743 | ) | ||||||||
| (5,589 | ) | (50,579 | ) | (3,243 | ) | (26,906 | ) | |||||||||
Net increase (decrease) | 3,732 | $ | 34,519 | 8,659 | $ | 72,439 | ||||||||||
| Real Estate Securities | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 16,324 | $ | 300,982 | 25,765 | $ | 400,605 | ||||||||||
Class B | 1 | 15 | 4 | 63 | ||||||||||||
Class C | 779 | 13,786 | 1,946 | 29,944 | ||||||||||||
Class R3 (1) | 1,777 | 33,484 | 2,996 | 46,563 | ||||||||||||
Class I (1) | 58,493 | 1,098,479 | 59,982 | 946,590 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 1,101 | 16,978 | 664 | 10,433 | ||||||||||||
Class B | 2 | 36 | 3 | 44 | ||||||||||||
Class C | 48 | 749 | 28 | 426 | ||||||||||||
Class R3 (1) | 86 | 1,349 | 75 | 1,183 | ||||||||||||
Class I (1) | 2,660 | 40,571 | 1,317 | 20,949 | ||||||||||||
| 81,271 | 1,506,429 | 92,780 | 1,456,800 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (17,600 | ) | (326,048 | ) | (10,506 | ) | (161,112 | ) | ||||||||
Class B | (55 | ) | (990 | ) | (53 | ) | (787 | ) | ||||||||
Class C | (594 | ) | (10,697 | ) | (357 | ) | (5,451 | ) | ||||||||
Class R3 (1) | (1,238 | ) | (23,267 | ) | (4,064 | ) | (65,341 | ) | ||||||||
Class I (1) | (30,942 | ) | (576,709 | ) | (22,061 | ) | (341,090 | ) | ||||||||
Class I (1) – In-Kind | (2,760 | ) | (48,375 | ) | — | — | ||||||||||
| (53,189 | ) | (986,086 | ) | (37,041 | ) | (573,781 | ) | |||||||||
Net increase (decrease) | 28,082 | $ | 520,343 | 55,739 | $ | 883,019 | ||||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
Real Estate Securities | 26 | 21 | ||||||
| Nuveen Investments | 41 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending and short-term investments, where applicable) during the fiscal year ended October 31, 2011, were as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Purchases | $ | 497,519 | $ | 3,470,215 | ||||
Sales | 470,860 | 2,983,477 | ||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
Global Infrastructure’s and Real Estate Securities’ most recent tax year ends were October 31, 2011 and December 31, 2010, respectively.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Cost of investments | $ | 173,652 | $ | 4,082,088 | ||||
Gross unrealized: | ||||||||
Appreciation | $ | 13,713 | $ | 561,626 | ||||
Depreciation | (8,506 | ) | (100,620 | ) | ||||
Net unrealized appreciation (depreciation) of investments | $ | 5,207 | $ | 461,006 | ||||
Permanent differences, primarily due to redemption-in-kind, tax equalization, REIT adjustments, foreign currency reclassifications and investments in passive foreign investment companies, resulted in reclassifications among the Funds’ components of net assets at October 31, 2011, as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Capital paid-in | $ | — | $ | 15,114 | ||||
Undistributed (Over-distribution) of net investment income | (873 | ) | 10,265 | |||||
Accumulated net realized gain (loss) | 873 | (25,379 | ) | |||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, were as follows:
| Global Infrastructure | Real Estate Securities** | |||||||
Undistributed net ordinary income* | $ | 4,899 | $ | 10,151 | ||||
Undistributed net long-term capital gains | 2,179 | 20,605 | ||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
| ** | Amounts are estimated as of October 31, 2011. |
The tax character of distributions paid during the period ended October 31, 2011, was designated for purposes of the dividends paid deduction as follows:
| Global Infrastructure | Real Estate Securities** | |||||||
Distributions from net ordinary income* | $ | 10,457 | $ | 28,321 | ||||
Distributions from net long-term capital gains | 428 | 34,827 | ||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
| ** | Amounts are estimated as of October 31, 2011. |
The tax character of distributions paid during the previous tax period was designated for purposes of the dividends paid deductions as follows:
| Global Infrastructure** | Real Estate Securities** | |||||||
Distributions from net ordinary income* | $ | 1,125 | $ | 24,213 | ||||
Distributions from net long-term capital gains | — | 25,084 | ||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
| ** | Global Infrastructure and Real Estate Securities previous tax year ends were October 31, 2010 and December 31, 2010, respectively. |
| 42 | Nuveen Investments |
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors a monthly advisory fee, on an annual basis, equal to each Fund’s average daily net assets as follows:
| Fund | Advisory Fee Rate | |||
Global Infrastructure | .90 | % | ||
Real Estate Securities | .70 | |||
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by Nuveen Fund Advisors.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Global Infrastructure Fund-Level Fee Rate | Real Estate Securities Fund-Level Fee Rate | ||||||
For the first $125 million | .7500 | % | .7000 | % | ||||
For the next $125 million | .7375 | .6875 | ||||||
For the next $250 million | .7250 | .6750 | ||||||
For the next $500 million | .7125 | .6625 | ||||||
For the next $1 billion | .7000 | .6500 | ||||||
For net assets over $2 billion | .6750 | .6250 | ||||||
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule for each Fund as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rate for each Fund was as follows: |
| Fund | Complex-Level Fee Rate | |||
Global Infrastructure | .1759 | % | ||
Real Estate Securities | .1935 | |||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Fund’s overall strategy and asset allocation decisions.
| Nuveen Investments | 43 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were a series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed each investing Fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations, and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
During the period November 1, 2010 through December 31, 2010, FAF Advisors agreed to waive fees and reimburse other Fund expenses of Global Infrastructure through February 28, 2011 so that total annual Fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange-traded funds and other investment companies, as a percentage of each Fund’s average daily net assets, did not exceed the following amounts:
| Global Infrastructure | ||||
Class A Shares | 1.2500 | % | ||
Class C Shares | 2.000 | |||
Class R3 Shares (1) | 1.500 | |||
Class I Shares (1) | 1.000 | |||
Expiration Date | February 28, 2011 | |||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Effective January 1, 2011, Nuveen Fund Advisors agreed to waive fees and reimburse other Fund expenses of Global Infrastructure so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
| Global Infrastructure | ||||
Class A Shares | 1.2500 | % | ||
Class C Shares | 2.000 | |||
Class R3 Shares (1) | 1.500 | |||
Class I Shares (1) | 1.000 | |||
Expiration Date | February 29, 2012 | |||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Funds advised by Nuveen Fund Advisors.
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
| 44 | Nuveen Investments |
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
Custodian Fees
U.S. Bank serves as the custodian for Real Estate Securities pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as the custodian for Global Infrastructure pursuant to an agreement with the Trust. Global Infrastructure pays SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly.
Interest earned on un-invested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Under the new agreement, Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B Shares and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC. collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Sales charges collected (Unaudited) | $ | 206 | $ | 270 | ||||
Paid to financial intermediaries (Unaudited) | 183 | 242 | ||||||
Quasar and/or Nuveen Securities, LLC. also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC. compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Global Infrastructure | Real Estate Securities | |||||||
Commission advances (Unaudited) | $ | 36 | $ | 47 | ||||
All 12b-1 service and distribution fees collected on Class B and C Shares during the first year following a purchase were retained by Quasar and/or the Nuveen Securities, LLC. to compensate for commissions advanced to financial intermediaries. During the fiscal year ended October 31, 2011, Quasar and/or the Nuveen Securities, LLC. retained such 12b-1 fees as follows:
| Global Infrastructure | Real Estate Securities | |||||||
12b-1 fees retained (Unaudited) | $ | 51 | $ | 320 | ||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $2 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
| Nuveen Investments | 45 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of the Funds were sold with an up-front sales charge of 5.50%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Effective January 18, 2011, Class A Shares of the Funds are sold with an up-front sales charge of 5.75%. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class B Shares continue to automatically convert to Class A Shares eight years after purchase. Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Quasar and/or Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| Global Infrastructure | Real Estate Securities | |||||||
CDSC retained (Unaudited) | $ | 2 | $ | 16 | ||||
Affiliated Pension Plan and Redemptions In-Kind
An affiliated pension plan of FAF Advisors, (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, in the amounts as follows:
Real Estate Securities | $ | 48,375 |
In this transaction, the Fund paid redemption proceeds by distributing a proportionate amount of securities in its portfolio. Remaining shareholders in the Fund did not recognize any capital gains from the transaction.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2 and the reasons for the transfers and ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
9. Subsequent Events
Effective November 1, 2011, the Funds’ Board of Directors approved a fiscal year end change from October 31 to December 31 for the Funds. Also effective November 1, 2011, the Funds’ Board of Directors approved a tax year end change from October 31 to December 31 for Global Infrastructure.
| 46 | Nuveen Investments |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
| Nuveen Investments | 47 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
| 48 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
| Nuveen Investments | 49 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
| 50 | Nuveen Investments |
Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). At a meeting of the Funds’ stockholders held on December 17, 2010 (adjourned until December 29, 2010 for the Nuveen Real Estate Securities Fund (formerly known as the Real Estate Securities Fund)), stockholders of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement and the NAM Sub-Advisory Agreement became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for the Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
| Nuveen Investments | 51 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
| 52 | Nuveen Investments |
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
| Nuveen Investments | 53 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Lipper Specialty/Miscellaneous Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Specialty/Miscellaneous Funds Classification. The Lipper Specialty/Miscellaneous Funds Classification Average contained 87 and 28 funds for the 1-year, and since inception periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Real Estate Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Real Estate Funds Classification. The Lipper Real Estate Funds Classification Average contained 209, 158 and 87 funds for the 1-year , 5-year and 10-years periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Morgan Stanley REIT Index: A capitalization-weighted benchmark index of the most actively traded real estate investment trusts (REITs), designed to measure real estate equity performance. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
S&P Global Infrastructure Index: An index that provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
| 54 | Nuveen Investments |
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodians
U.S. Bank National Association
St. Paul, MN
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Distribution Information: The following Fund hereby designates its percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and its percentages as qualified dividend income (“QDI”) for individuals under Section 1 (h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| Fund | % of DRD | % of QDI | ||||||
Nuveen Global Infrastructure Fund | 13.41 | % | 77.47 | % | ||||
Foreign Taxes: Nuveen Global Infrastructure Fund paid qualifying foreign taxes of $510 (in thousands) and earned $5,278 (in thousands) foreign source income during the year ended October 31, 2011. Pursuant to Section 853 of the Internal Revenue Code, the Fund hereby designates $0.03 per share as foreign taxes paid and $0.26 per share as income earned from foreign sources for the year ended October 31, 2011. The actual foreign tax credit distribution will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
Long Term Capital Gain Distributions: The following Fund designates as a long term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amounts shown in the accompanying table or, if greater, the amount necessary to reduce earnings and profits of the Fund related to net capital gain to zero for the tax year ended October 31, 2011:
| Fund | Long Term Capital Gain Dividend (in thousands) | |||
Nuveen Global Infrastructure Fund | $ | 428 | ||
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
| Nuveen Investments | 55 |
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
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MAN-FREGIF-1011P
Mutual Funds
Nuveen Equity Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen International Fund | FAIAX | FNABX | FIACX | ARQIX | FAICX | |||||
Nuveen International Select Fund | ISACX | — | ICCSX | ISRCX | ISYCX | |||||
Nuveen Quantitative Enhanced Core Equity Fund | FQCAX | — | FQCCX | — | FQCYX | |||||
Nuveen Tactical Market Opportunities Fund | NTMAX | — | NTMCX | — | FGTYX | |||||
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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 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. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
The Nuveen International Fund (formerly known as First American International Fund) is managed by a team of managers associated with three different sub-advisers: Nuveen Asset Management, LLC, an affiliate of Nuveen Investments; Altrinisic Global Advisors, LLC; and Hansberger Global Investors, Inc.
The Nuveen International Select Fund (formerly known as First American International Select Fund) is managed by a team of managers associated with four different sub-advisers: Nuveen Asset Management, LLC, an affiliate of Nuveen Investments; Altrinsic Global Advisors, LLC; Hansberger Global Investors, Inc.; and Lazard Asset Management LLC.
The Nuveen Quantitative Enhanced Core Equity Fund (formerly known as First American Quantitative Large Cap Core Fund and Nuveen Quantitative Large Cap Core Fund) is managed by a team of managers from Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Effective May 16, 2011, the Fund changed its name from the Nuveen Quantitative Large Cap Core Fund to Nuveen Quantitative Enhanced Core Equity Fund. There were no changes in the Fund’s investment objectives, policies or portfolio management personnel.
Nuveen Tactical Market Opportunities Fund (formerly known as First American Tactical Market Opportunities Fund) is managed by a team of managers from Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed
| Nuveen Investments | 5 |
expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt issue caused a high degree of volatility in the equity markets. The first half of the period saw dramatic gains for stocks and other risk assets fueled by signs of an improving economy. However, as the summer progressed, markets fell back sharply. For much of August and September, stocks traded lower before staging a comeback in the final month of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen International Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) modestly underperformed the MSCI EAFE Index and outperformed Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of foreign issuers that trade in U.S. or foreign markets, depositary receipts representing shares of foreign issuers, and exchange-traded funds and other investment companies that provide exposure to foreign issuers. Two of the Fund’s sub-advisers, Altrinsic Global Advisors, LLC, and Hansberger Global Investors, Inc., select stocks for the Fund according to the developed markets growth and developed markets value styles,
| 6 | Nuveen Investments |
respectively. At the same time, the Fund’s third sub-adviser, Nuveen Asset Management, LLC, maintains strategic oversight of the Fund, which includes allocating assets among the sub-advisers (including itself), tactically adjusting the overall portfolio balance and country emphasis using index-related investments, and selecting stocks in the infrastructure sector.
Our most successful strategy for the Fund during the fiscal year was an underweight stance in Europe, which averaged 5% below the index weight. In particular, we minimized the Fund’s exposure to stocks from the eurozone’s most troubled economies — Greece, Ireland, Italy, Portugal and Spain — because we have long anticipated Europe’s sovereign debt problem. Likewise, we also avoided stocks of European banks, as they have meaningful exposure to the debt from these countries. During the period, European stocks took a sharp downturn as investors were sorely disappointed by the inability of politicians to gain a meaningful consensus on how to effectively deal with the issue. In contrast to the eurozone underweight, the Fund successfully emphasized countries like Sweden and the United Kingdom. Although monetary disruptions in the euro area would potentially harm many other nations, the U.K.’s ability to conduct its own monetary policy, plus its heavy exposure to international resources stocks, made it a safer position in our opinion. We favored Sweden because it is likewise relatively unencumbered by euro issues, as well as having a robust export-oriented industrial sector.
Our positioning in Japan also proved beneficial over the period. We held an underweight allocation to Japan early on, which aided results as its market dropped sharply in reaction to the earthquake and ensuing nuclear plant disaster in March. Following the initial steep market decline, we moved to an overweight in Japan, which proved beneficial as the Japanese market did stabilize. The country benefited from the very aggressive liquidity provided by the Bank of Japan in the wake of the disaster and the economic stimulus provided by its rebuilding efforts.
The Fund’s performance was also helped by our emphasis on significant materials producing and exporting nations, including Canada and Australia. We overweighted these countries because we continued to believe that demand, particularly for metals and minerals, would outpace supply. Indeed, heavy demand for raw materials around the world made this a successful strategy to employ. The overweight to Canada in particular was a plus as its market was more stable during the summer’s downturn. Our overweight to Australia produced slightly more mixed results, but ended the period as a positive contributor. Early on, Australia’s market lagged after its reserve bank tightened monetary policy at the same time the country was hit with devastating floods. Although Australia’s market faltered slightly, we continued to maintain our overweight based on attractive stock valuations and market fundamentals. We also favored Australia because the country is a large coal producer, a commodity that is not as impacted as oil by speculation and reduced demand. Australia’s market provided better results in the second half of the reporting period.
Offsetting these areas of strength was our overweight of approximately 3% in emerging markets, mostly through the portfolio’s positions in Brazil and China. In aggregate, emerging markets underperformed developed markets over this reporting period. Early in the period, we believed Chinese stocks had fallen back from their high level of overvaluation and that select companies in Brazil looked attractive. However, these two
| Nuveen Investments | 7 |
key emerging markets produced disappointing returns in the first half of the period despite strong growth in their economies. Building inflationary pressures in each country led to various monetary policy tightening measures that ended up restraining performance in these markets. Although the policy steps were effective and the emerging markets staged a brief comeback in March, the situation was short-lived. As concerns about the European sovereign debt situation and a global growth slowdown escalated in mid-summer, emerging markets took another big hit. In particular, China slowed dramatically due to the export-oriented nature of its economy and concerns of speculative bubbles that could disrupt the economy by producing a “hard landing” from China’s continuing strong growth. We had continued to dramatically overweight China as we anticipated it would hold up better than it did as the country continued to re-direct toward internal growth.
Throughout the period, we also invested in equity and currency futures contracts. These futures were used as an overlay strategy to adjust the exposures created by our multi-manager framework so that the overall Fund had the desired exposures to key markets. Long and short futures contracts were used to implement various tactical market and hedging strategies. For example, in response to the concerns about the future of the euro due to the European Central Bank policies, we emphasized dollar versus euro-based investing. At the end of the period, this contributed a small benefit to returns. We initiated and still maintained at the end of the period a short position on the euro and a positive position on the dollar. Throughout the period, we also used equity contracts to underweight both India and Mexico at various times, which produced a modest benefit.
Because of our ongoing concerns about a positive resolution in Europe, we maintained the Fund’s approximately 5% underweight to developed nations, especially in the eurozone. At the end of the reporting period, the Fund had a 9% underweight in Europe, including a significant tilt away from France. We believe the fiscal austerity measures required to receive funding aid and the elevated cost of debt financing are likely to further constrain growth. This may continue to weigh on the performance of these economies and markets in the coming year. Therefore, we’ve shifted the Fund’s allocations primarily to other developed nations, while maintaining a small overexposure to emerging markets. Within the developed markets, we are continuing to focus on countries that have shown good organic growth lately. We continue to be modestly optimistic about global growth prospects while recognizing that the investing climate has many investors worried. Because of our concerns about spreading risk from the European situation, we expect to continue to underweight banks and other financial stocks until we see resolution of the heavy sovereign debt loads. Meanwhile, we will continue to emphasize commodities-based economies in the Fund, especially those involved in the metals, minerals and energy sectors. In emerging markets, we are emphasizing select companies in Brazil, which we believe will perform well despite the country’s inflation problem. We have also initiated a position in a portfolio of gold producers as a hedge.
| 8 | Nuveen Investments |
Nuveen International Select Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year and since inception periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the MSCI All Country World Investable Market Index (ex US) and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of foreign issuers that trade in U.S. or foreign markets, depositary receipts representing shares of foreign issuers, and exchange-traded funds and other investment companies that provide exposure to foreign issuers. Three of the Fund’s sub-advisers, Altrinsic Global Advisors, LLC; Hansberger Global Investors, Inc.; and Lazard Asset Management LLC, select stocks for the Fund according to the developed markets growth, developed markets value or emerging market styles, respectively. At the same time, the Fund’s fourth sub-adviser, Nuveen Asset Management, LLC, maintains strategic oversight of the Fund, which includes allocating assets among the sub-advisers (including itself), tactically adjusting the overall portfolio balance and country emphasis using index-related investments and selecting stocks in the infrastructure sector.
During the period, the primary cause of the Fund’s underperformance was its overweight to emerging markets. Although we significantly pulled back the overweight, it was still detrimental as these markets in aggregate underperformed developed markets over this time frame. Early in the period, the Fund moved to an overweight in China because we believed its stocks had fallen back from their high level of overvaluation. We also held a modest overweight to Brazil and an underweight to India. However, these three key emerging markets produced disappointing returns in the first half of the period despite strong growth in their economies. Building inflationary pressures in each country led to various monetary policy tightening measures that ended up restraining performance in these markets. Although the policy steps were effective and the emerging markets staged a brief comeback in March, the situation was short-lived. As concerns about the European sovereign debt situation and a global growth slowdown escalated in mid-summer, emerging markets took another big hit. In particular, China slowed dramatically due to the export-oriented nature of its economy and concerns of speculative bubbles that could disrupt the economy by producing a “hard landing” from China’s continuing strong growth. We had continued to dramatically overweight China as we anticipated it would hold up better than it did as the country continued to re-direct toward internal growth.
Also within the emerging markets, our significant overweight to Russia had mixed results, but in the end proved detrimental to the Fund’s performance. In the first part of the fiscal year, the overweight stance in Russia generated positive returns. As a low-cost producer of oil, Russia benefited from the rising cost of commodities that peaked in late spring.
| Nuveen Investments | 9 |
However, stocks in Russia, which are generally driven by demand for energy from Europe and China and the price of energy globally, retreated based on the slowdown in energy prices that persisted throughout the summer. We maintained the Fund’s overweight because we believed that Russia’s low-cost producers would continue to perform well even if prices didn’t maintain their highs.
On the positive side, our most successful strategy by far in the Fund was our underweight to Europe, which averaged 5% below the index during the fiscal year. In particular, we minimized the Fund’s exposure to stocks from the eurozone’s most troubled economies — Greece, Ireland, Italy, Portugal and Spain — because we have long anticipated Europe’s sovereign debt problem. Likewise, we also avoided stocks of European banks, as they have meaningful exposure to the debt from these countries. During the period, European stocks took a sharp downturn as investors were sorely disappointed by the inability of politicians to gain a meaningful consensus on how to effectively deal with the issue. In contrast to the eurozone underweight, the Fund successfully emphasized countries like Sweden and the United Kingdom. Although monetary disruptions in the euro area would potentially harm many other nations, the U.K.’s ability to conduct its own monetary policy, plus its heavy exposure to international resources stocks, made it a safer position. We favored Sweden because it is likewise relatively unencumbered by euro issues, as well as having a robust export-oriented industrial sector.
Our positioning in Japan also proved beneficial over the period. We held an underweight allocation to Japan early on, which aided results as its market dropped sharply in reaction to the earthquake and ensuing nuclear plant disaster in March. Following the initial steep market decline, we moved to an overweight in Japan, which proved beneficial as the Japanese market did stabilize. The country benefited from the very aggressive liquidity provided by the Bank of Japan in the wake of the disaster and the economic stimulus provided by its rebuilding efforts.
The Fund’s performance also benefited from an emphasis on significant materials producing and exporting nations, including Canada and Australia. We overweighted these countries because we continued to believe that demand, particularly for metals and minerals, would outpace supply. Indeed, heavy demand for raw materials around the world made this a successful strategy to employ. The overweight to Canada in particular was a plus as its market was more stable during the summer’s downturn. Our overweight to Australia produced slightly more mixed results, but ended the period as a positive contributor. Early on, Australia’s market lagged after its reserve bank tightened monetary policy at the same time the country was hit with devastating floods. Although Australia’s market faltered slightly, we continued to maintain our overweight based on attractive stock valuations and market fundamentals. We also favored Australia because the country is a large coal producer, a commodity that is not as impacted by speculation and reduced demand as oil. Australia’s market provided better results in the second half of the reporting period.
Throughout the period, we also invested in equity and currency futures contracts. These futures were used as an overlay strategy to adjust the exposures created by our multi-manager framework so that the overall Fund had the desired exposures to key markets. Long and short futures contracts were used to implement various tactical market
| 10 | Nuveen Investments |
and hedging strategies. For example, in response to the concerns about the future of the euro due to the European Central Bank policies, we emphasized dollar versus euro-based investing. We initiated and still maintain a short position on the euro and a positive position on the dollar.
Because of our ongoing concerns about a positive resolution in Europe, we are maintaining the Fund’s underweight to developed nations, especially in the eurozone. At the end of the reporting period, the Fund had a 9% underweight in Europe. We believe the fiscal austerity measures required to receive funding aid and the elevated cost of debt financing are likely to further constrain growth. This may continue to weigh on the performance of these economies and markets in the coming year. Therefore, we’ve shifted the Fund’s allocations to other developed and emerging market nations. Within the developed markets, we are continuing to focus on countries that have shown good organic growth lately. We continue to be modestly optimistic about global growth prospects while recognizing that the investing climate has many investors worried. Because of our concerns about spreading risk from the European situation, we expect to continue to underweight banks and other financial stocks until we see resolution of the heavy sovereign debt loads. Meanwhile, we will continue to emphasize commodities-based economies in the Fund, especially those involved in the metals, minerals and energy sectors.
Within emerging markets, we continue to hold an overweight position, particularly in the Pacific Rim, comprised of many small positions in countries such as Indonesia, Malaysia, Korea, Turkey and Russia as well as a modest overweight to China. Many of these countries are relatively less export oriented and we believe may be more reliant on internal growth and less sensitive to events in Europe. Conversely, we hold an underweight position in Taiwan because of its position as a major exporter of electronic and consumer products. In addition, we are maintaining a large overweight to select companies in Brazil, which we believe will perform well despite the country’s inflation problem. We have also initiated a position in a portfolio of gold producers as a hedge.
Nuveen Quantitative Enhanced Core Equity Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year and since inception periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the S&P 500 Index over the twelve-month period, but outperformed the Lipper classification average.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund’s goal is to provide, over the long term, a total return that exceeds the return of the S&P 500 Index. In attempting to achieve this goal, the Fund primarily invests in the common stocks of companies that have market capitalizations at the time of purchase
| Nuveen Investments | 11 |
within the range of the companies in the S&P 500 Index. To select specific stocks, we use proprietary models that help establish quantitative links between economic and market variables, investment factors and equity market returns. Our proprietary models analyze macroeconomic and market data and other statistics to determine what we believe will be the key drivers of performance in the current economy. We use historical analysis of these drivers to estimate equity market returns and the relative contribution to these returns from a comprehensive list of investment factors. We then evaluate each stock in the investable universe to determine its sensitivity to each factor and estimate a potential contribution for each stock. Our goal is to build an optimized portfolio that targets the highest expected returns, while using the proprietary models and processes described above to maintain as tight a control as possible on overall risk.
During the reporting period, performance benefited from our shifts toward stocks with several characteristics that we believed were most in favor. Our tilt toward the lower end of the S&P 500 Index’s market capitalization range was the Fund’s most significant style position, and by far the most successful strategy throughout the period. For example, the Fund’s geometric weighted average market capitalization of $41 billion was below the $48 billion calculated for the S&P 500 Index at fiscal year-end. Two other style moves were beneficial for the Fund during the period. We successfully emphasized companies with higher quality balance sheets, as measured by their lower debt-to-equity ratios, on average, during the period. We also were rewarded for our avoidance of stocks that had a high percentage of their outstanding shares being traded, which to many indicates a higher level of speculation.
In terms of the sector component of our strategy, the Fund benefited from successful relative positions in financials and basic materials. The financial sector was the worst-performing sector over this time frame. For three-fourths of the fiscal year, we successfully underweighted financials (particularly large banks) in the Fund, which our models first signaled to do in late 2007 due to weaker prospects across the sector. While we held this significant underweight, the sector fell more than 22% in August. The drop was notably worse than the broad market because of concerns that large financial institutions would suffer significant losses due to write-downs of European nations’ debts. Toward the end of the fiscal year, we made a shift back to overweighting financials when their prices were very inexpensive by historical standards. Our models indicated that continued accommodative monetary policy by the Federal Reserve might benefit profitability at banks. Financial stocks performed extremely well in the final month of the period. The Fund’s performance also benefited from an overweight in the basic materials sector, particularly metals and chemicals. Heavy demand around the world for raw materials made this emphasis a successful strategy to employ. As always, the Fund’s sector positions were consistent with our efforts to control risk exposure as tightly as possible.
Unfortunately, the Fund’s unfavorable results among other style and sector themes offset some of the above-mentioned areas of strength. For example, the Fund was negatively impacted by our tilt toward the value style through our emphasis on stocks with a higher ratio of book value to market value, and value stocks underperformed during this period. In terms of sectors, the biggest negative contribution to performance came from significantly underweighting consumer stocks, both in the staples and discretionary
| 12 | Nuveen Investments |
groups. Our models indicated this underweight stance based on poor readings for unemployment, consumer sentiment and personal income growth. However, investors saw opportunities for consumer spending to increase from very depressed levels and bid these stocks, especially discretionaries, up during the year.
Mis-timed weightings in the technology sector also dragged slightly on performance. We started the year with an emphasis on cyclical stocks and a substantial overweight to technology. Although we were optimistic about business spending in technology, the sector’s performance was relatively flat. After the outlooks for business investment and manufacturing activity fell off abruptly in mid-summer and the markets became significantly more volatile, our models indicated a shift to an underweight. However, after the technology sector took a nosedive, it bounced back quickly to end with relatively good performance.
Our timing in energy also caused slightly negative results as the sector was by far the top-performing area of the index, advancing more than 17% during the fiscal year. We started the period with an underweight and missed out on the sector’s strong gains as oil prices rose significantly. After March, we moved to an overweight in energy stocks as our models indicated that stock prices had not increased enough in relation to the high cost of oil. However, when oil prices fell from around $113 per barrel to just below $80, these stocks experienced tremendous downside. The segment’s relative performance since we moved to an overweight at the end of March has been negative.
Performance was also hurt by our average underweight in health care stocks, particularly large pharmaceuticals. These stocks performed well during the period due to their above-average dividend yields and investors renewed interest in the segment.
We continue to monitor key indicators that have historically signified which stocks will perform best in the current environment. With the economic conditions in the United States remaining difficult and concerns abounding about Europe’s debt crisis, we expect the Federal Reserve will continue with its very accommodative monetary policy. While we believe the economics for businesses and consumers are stabilizing, companies will likely face only modest opportunities for increasing profits as cost reductions have, for the most part, taken place. We’ll continue to watch for opportunities in individual sectors and investing styles that are likely to do well in a low-growth environment, such as value investing. Also, the Fund continues to be postured with a bias toward smaller companies within the S&P 500, as many of these are less sensitive to global conditions.
Throughout the period, we also invested in S&P 500 Index futures contracts, which were used to convert cash into the equivalent of an S&P 500 Index holding. This helped to minimize tracking error to the Fund’s benchmark index resulting from cash flow activity and tactical portfolio management positioning.
Nuveen Tactical Market Opportunities Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for since inception period ended October 31, 2011.
| Nuveen Investments | 13 |
The Fund’s Class A Shares at net asset value (NAV) outperformed the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index and the Lipper classification average over the period from the Fund’s inception on February 24, 2011, through October 31, 2011.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide investors with the potential for a positive total return over a reasonable period of time, regardless of market conditions. To accomplish this, the Fund invests in a variety of assets and periodically adjusts its allocations to fixed income, equities and cash. Other asset classes, such as currencies and commodities, are held at times to take advantage of market opportunities or to further diversify the Fund.
During this initial period for the Fund, its fixed-income component provided the biggest contribution to positive performance. The fixed-income allocation generally consisted of long duration U.S. Treasury securities, as well as exchange-traded funds (ETFs) in various fixed-income sectors, such as investment-grade credit, high-yield bonds, emerging market debt, mortgage-backed securities and preferred stock. We also included short U.S. Treasury futures at the front end of the yield curve as a view on market rates and also as a hedge for other fixed-income securities. High-yield, municipal bond and preferred stock ETFs, as well as 30-year U.S. Treasury securities, were the primary positive contributors in the fixed-income portfolio during this period.
The Fund’s equity component also provided a significant positive contribution to performance. The equity allocation included several long positions in index futures and ETFs. Overall, the Fund benefited from long positions in Germany, the S&P 500 Index, South Africa, emerging markets and Chile as well as a short position in Spain.
Long positions in Switzerland and Hong Kong detracted from the Fund’s performance. In addition, short positions in the Russell 2000 Index, the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index and the NASDAQ Composite Index also hindered results. Although these short positions underperformed, they were utilized as part of spread trades with positions in other countries, and did not necessarily reflect a negative outlook on the broad market. Rather, these spread trades are used to express a view of relative performance between countries, while attempting to reduce the overall volatility of the Fund.
As previously mentioned, the fixed-income component consisted of U.S. Treasury securities and a variety of fixed-income ETFs representing various sectors such as investment-grade credit, high-yield bonds, mortgage-backed securities, emerging market debt and preferred stock. These securities are held in various proportions at different times, and are a primary component of the Fund’s strategy. ETF rotation within fixed income is an ongoing process to take advantage of market conditions, the outlook for fixed-income sectors and relative yield advantages.
The equity component of the Fund generally consisted of long or short futures contracts as well as country and sector ETFs. While net equity exposure remained constrained, gross exposure was significant and reflected a view of relative country performance. These views were generally expressed with futures spread trades such as long S&P 500 Index/short Russell 2000 Index, long Germany equities/short Spanish equities and long
| 14 | Nuveen Investments |
Indian equities/short Korean and Taiwanese equities, to name a few. Other securities, such as high-yield and preferred stock ETFs, provided equity-like exposure yet were not included in the net and gross equity market value calculation. When evaluating the proper equity risk exposure, the weights of these fixed-income ETFs are considered. From a positioning perspective, we have reduced the Fund’s net exposure to equities in general while maintaining positions in emerging markets such as Russia and spread trades such as long China/short India and long Taiwan/short Nasdaq.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.
These Funds are actively managed, and each at times may use a proprietary quantitative process that projects individual stock performance based on multiple factors and current economic conditions. Stocks selected using this process could underperform if the performance of the considered factors differs from historic norms. There is no guarantee that the Funds will achieve their investment objectives. The advisor’s asset allocation decisions may be incorrect and could adversely affect Fund performance. The Funds may be exposed to the risks of the underlying securities held by an exchange-traded fund (ETF) and may bear a proportionate share of the ETF’s expenses. Derivative investing may involve a high degree of financial risk, including the risk that the loss on a derivative may be greater than the principal amount invested. The use of leverage through the use of derivatives may magnify this risk. Debt securities typically decrease in value when interest rates rise. This risk is greater for longer-term debt securities. Lower-rated and nonrated securities present a greater risk of loss to principal and interest rate than higher-rated securities. Commodity prices may be highly volatile and are affected by factors such as changes in demand, disruption in supply, and hedging and trading strategies of other market participants. Each of these asset classes may be less liquid and more volatile.
| Nuveen Investments | 15 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
| 16 | Nuveen Investments |
Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following eight pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares and Class Y Shares, previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
| Nuveen Investments | 17 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen International Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -3.93% | -2.72% | 3.67% | |||||||||
Class A Shares at maximum Offering Price | -9.45% | -3.87% | 3.06% | |||||||||
MSCI EAFE Index* | -3.64% | -1.95% | 6.19% | |||||||||
Lipper International Large-Cap Growth Fund Classification Average* | -5.48% | -1.12% | 5.47% | |||||||||
Class B Shares w/o CDSC** | -4.64% | -3.46% | 2.88% | |||||||||
Class B Shares w/CDSC** | -9.40% | -3.63% | 2.88% | |||||||||
Class C Shares | -4.71% | -3.44% | 2.89% | |||||||||
Class R3 Shares | -4.10% | -2.89% | 3.42% | |||||||||
Class I Shares | -3.90% | -2.52% | 3.90% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -8.79% | -3.60% | 3.05% | |||||||||
Class A Shares at maximum Offering Price | -14.06% | -4.74% | 2.44% | |||||||||
Class B Shares w/o CDSC** | -9.46% | -4.35% | 2.27% | |||||||||
Class B Shares w/CDSC** | -13.99% | -4.52% | 2.27% | |||||||||
Class C Shares | -9.45% | -4.32% | 2.28% | |||||||||
Class R3 Shares | -9.04% | -3.79% | 2.80% | |||||||||
Class I Shares | -8.54% | -3.36% | 3.31% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.66% | 1.50% | ||||||
Class B Shares | 2.41% | 2.25% | ||||||
Class C Shares | 2.41% | 2.25% | ||||||
Class R3 Shares | 1.91% | 1.75% | ||||||
Class I Shares | 1.41% | 1.25% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.49%, 2.24%, 2.24%, 1.74% and 1.24%, respectively, for Class A, Class B, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 19 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen International Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares at NAV | -6.70% | -1.47% | ||||||
Class A Shares at maximum Offering Price | -12.05% | -2.66% | ||||||
MSCI All Country World Investable Market Index (ex US)** | -4.25% | -1.11% | ||||||
Lipper International Large-Cap Growth Fund Classification Average** | -5.48% | -2.12% | ||||||
Class C Shares | -7.45% | -2.21% | ||||||
Class R3 Shares | -8.54% | -2.07% | ||||||
Class I Shares | -6.60% | -1.23% | ||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares at NAV | -12.03% | -3.31% | ||||||
Class A Shares at maximum Offering Price | -17.04% | -4.50% | ||||||
Class C Shares | -12.70% | -4.03% | ||||||
Class R3 Shares | -13.70% | -3.89% | ||||||
Class I Shares | -11.83% | -3.07% | ||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.50% | |||
Class C Shares | 2.25% | |||
Class R3 Shares | 1.75% | |||
Class I Shares | 1.25% | |||
The Fund’s adviser has contractually agreed to waive fees and reimburse other Fund expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.49%, 2.24%, 1.74%, and 1.24%, respectively, for Class A, Class C, Class R3, and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
| * | Since inception returns are from 12/21/06. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. |
| 20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 21 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Quantitative Enhanced Core Equity Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares | 6.50% | -2.06% | ||||||
S&P 500 Index** | 8.09% | -1.31% | ||||||
Lipper Large Cap Core Fund Classification Average** | 5.39% | -2.03% | ||||||
Class C Shares | 5.76% | -2.77% | ||||||
Class I Shares | 6.79% | -1.80% | ||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||
| 1-Year | Since Inception* | |||||||
Class A Shares | -0.27% | -4.50% | ||||||
Class C Shares | -1.00% | -5.20% | ||||||
Class I Shares | -0.03% | -4.26% | ||||||
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 0.99% | 0.71% | ||||||
Class C Shares | 1.74% | 1.46% | ||||||
Class I Shares | 0.74% | 0.46% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 0.70%, 1.45%, and 0.45%, respectively, for Class A, Class C and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Since inception returns are from 7/31/07. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. |
| 22 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 23 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Tactical Market Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011*
| Average Annual | ||||||||
| 1-Year* | Since Inception* | |||||||
Class A Shares at NAV | 6.61% | 6.89% | ||||||
Class A Shares at maximum Offering Price | 0.45% | 3.49% | ||||||
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index** | 0.13% | 0.12% | ||||||
Lipper Flexible Portfolio Fund Classification Average** | 3.69% | 6.40% | ||||||
Class C Shares | 5.87% | 6.08% | ||||||
Class I Shares | 6.95% | 7.18% | ||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||
| 1-Year* | Since Inception* | |||||||
Class A Shares at NAV | 6.07% | 6.58% | ||||||
Class A Shares at maximum Offering Price | 0.00% | 3.03% | ||||||
Class C Shares | 5.33% | 5.79% | ||||||
Class I Shares | 6.41% | 6.89% | ||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 3.60% | 1.39% | ||||||
Class C Shares | 4.35% | 2.14% | ||||||
Class I Shares | 3.35% | 1.14% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.20%, 1.95%, and 0.95%, respectively, for Class A, Class C and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Since inception returns for Class A, Class C and Class I Shares, and for the comparative index and Lipper classification average, are from 12/30/09. Class I Share returns are actual. The returns for Class A and Class C Shares are actual for the periods since class inception on 2/24/11; returns prior to class inception are Class I Share returns adjusted for differences in sales charges and expense, which are primarily differences in distribution and service fees. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. |
| 24 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 — Class A Shares*
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 25 |
Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen International Fund
Portfolio Allocation1
Nuveen International Select Fund
Portfolio Allocation1
| Portfolio Composition1 | ||||
| Financials | 14.3% | |||
| Industrials | 11.7% | |||
| Energy | 10.2% | |||
| Consumer Staples | 9.4% | |||
| Consumer Discretionary | 8.9% | |||
| Information Technology | 7.6% | |||
| Materials | 7.5% | |||
| Health Care | 7.2% | |||
| Utilities | 6.1% | |||
| Short-Term Investments | 7.8% | |||
| Other | 9.3% | |||
| Portfolio Composition1 | ||||
| Financials | 21.3% | |||
| Industrials | 10.4% | |||
| Information Technology | 9.9% | |||
| Consumer Staples | 9.8% | |||
| Energy | 8.9% | |||
| Materials | 8.7% | |||
| Consumer Discretionary | 7.0% | |||
| Utilities | 5.5% | |||
| Telecommunication Services | 5.4% | |||
| Short-Term Investments | 8.6% | |||
| Other | 4.5% | |||
| Country Allocation1 | ||||
| Japan | 16.7% | |||
| United Kingdom | 15.9% | |||
| United States | 13.4% | |||
| Switzerland | 9.4% | |||
| Germany | 8.5% | |||
| Canada | 4.7% | |||
| France | 4.2% | |||
| Hong Kong | 2.6% | |||
| Australia | 2.4% | |||
| Ireland | 2.1% | |||
| Italy | 2.0% | |||
| Other | 18.1% | |||
| Top Five Common Stock Holdings2 | ||||
| Roche Holding | 2.1% | |||
| Canon | 1.8% | |||
| Nestle | 1.8% | |||
| GlaxoSmithKline | 1.6% | |||
| Adidas | 1.4% | |||
| Country Allocation1 | ||||
| United States | 16.5% | |||
| Japan | 10.5% | |||
| United Kingdom | 9.5% | |||
| Brazil | 7.2% | |||
| Switzerland | 5.8% | |||
| Germany | 5.3% | |||
| South Korea | 4.0% | |||
| Canada | 3.9% | |||
| South Africa | 3.2% | |||
| Hong Kong | 2.7% | |||
| France | 2.6% | |||
| China | 2.5% | |||
| Russia | 2.4% | |||
| Australia | 2.2% | |||
| India | 2.0% | |||
| Other | 19.7% | |||
| Top Five Common Stock Holdings2 | ||||
| Roche Holding | 1.4% | |||
| Cielo | 1.2% | |||
| Redecard | 1.2% | |||
| Canon | 1.2% | |||
| Banco do Brasil | 1.1% | |||
| 1 | As a percentage of total investments (excluding investments in derivatives) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 3 | Rounds to less than 0.1%. |
| 26 | Nuveen Investments |
Nuveen Quantitative Enhanced Core Equity Fund
Portfolio Allocation1
Nuveen Tactical Market Opportunities Fund
Portfolio Allocation3
| Portfolio Composition1 | ||||
| Financials | 18.8% | |||
| Information Technology | 17.4% | |||
| Energy | 14.9% | |||
| Heath Care | 12.0% | |||
| Industrials | 8.2% | |||
| Consumer Staples | 8.1% | |||
| Consumer Discretionary | 7.6% | |||
| Utilities | 5.6% | |||
| Short-Term Investments | 2.3% | |||
| Other | 5.1% | |||
| Top Five Common Stock Holdings2 | ||||
| Exxon Mobil | 4.1% | |||
| Microsoft | 2.7% | |||
| Chevron | 2.7% | |||
| Apple | 2.3% | |||
| AT&T | 2.3% | |||
| 1 | As a percentage of total investments (excluding investments purchased with collateral from securities lending and investments in derivatives) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 3 | As a percentage of total investments (excluding investments in derivatives) as of October 31, 2011. Holdings are subject to change. |
| Nuveen Investments | 27 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen International Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 845.60 | $ | 842.80 | $ | 842.10 | $ | 845.50 | $ | 845.20 | $ | 1,017.49 | $ | 1,013.66 | $ | 1,013.71 | $ | 1,016.43 | $ | 1,018.80 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.93 | $ | 10.40 | $ | 10.40 | $ | 8.00 | $ | 5.77 | $ | 7.58 | $ | 11.37 | $ | 11.37 | $ | 8.74 | $ | 6.31 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.49%, 2.24%, 2.24%, 1.72% and 1.24% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen International Select Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 836.50 | $ | 832.90 | $ | 835.30 | $ | 836.80 | $ | 1,017.85 | $ | 1,014.06 | $ | 1,016.74 | $ | 1,019.06 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 6.76 | $ | 10.21 | $ | 7.77 | $ | 5.65 | $ | 7.43 | $ | 11.22 | $ | 8.54 | $ | 6.21 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.46%, 2.21%, 1.68% and 1.22% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Quantitative Enhanced Core Equity Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||
| A Shares | C Shares | I Shares | A Shares | C Shares | I Shares | |||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||
| Ending Account Value (10/31/11) | $ | 912.10 | $ | 908.70 | $ | 913.50 | $ | 1,021.68 | $ | 1,017.90 | $ | 1,022.94 | ||||||||||||||
| Expenses Incurred During Period | $ | 3.37 | $ | 6.98 | $ | 2.17 | $ | 3.57 | $ | 7.37 | $ | 2.29 | ||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .70%, 1.45% and .45% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| 28 | Nuveen Investments |
Nuveen Tactical Market Opportunities Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||
| A Shares | C Shares | I Shares | A Shares | C Shares | I Shares | |||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||
| Ending Account Value (10/31/11) | $ | 1,022.80 | $ | 1,019.20 | $ | 1,024.60 | $ | 1,019.41 | $ | 1,015.63 | $ | 1,020.47 | ||||||||||||||
| Expenses Incurred During Period | $ | 5.86 | $ | 9.67 | $ | 4.80 | $ | 5.85 | $ | 9.65 | $ | 4.79 | ||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.15%, 1.90% and .94%, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 29 |
Independent Registered
Public Accounting Firm
The Board of Directors and Shareholders
Nuveen International Fund (formerly First American International Fund)
Nuveen International Select Fund (formerly First American International Select Fund)
Nuveen Quantitative Enhanced Core Equity Fund (formerly First American Quantitative Large Cap Core Fund)
Nuveen Tactical Market Opportunities Fund (formerly First American Tactical Market Opportunities Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Nuveen International Fund (formerly First American International Fund), Nuveen International Select Fund (formerly First American International Select Fund), Nuveen Quantitative Enhanced Core Equity Fund (formerly First American Quantitative Large Cap Core Fund), and Nuveen Tactical Market Opportunities Fund (formerly First American Tactical Market Opportunities Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the ”Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen International Fund (formerly First American International Fund), Nuveen International Select Fund (formerly First American International Select Fund), Nuveen Quantitative Enhanced Core Equity Fund (formerly First American Quantitative Large Cap Core Fund), and Nuveen Tactical Market Opportunities Fund (formerly First American Tactical Market Opportunities Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| 30 | Nuveen Investments |
Nuveen International Fund
(formerly known as First American International Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 87.8% | ||||||||||||||
Australia – 2.3% | ||||||||||||||
| 64,649 | APA Group | $ | 294,830 | |||||||||||
| 42,246 | Asciano Group | 67,535 | ||||||||||||
| 52,219 | Australian Infrastructure Fund | 103,668 | ||||||||||||
| 48,361 | DUET Group | 84,282 | ||||||||||||
| 9,069 | Macquarie Atlas Roads Group — | 13,430 | ||||||||||||
| 49,890 | MAp Group | 178,021 | ||||||||||||
| 5,462 | QR National | 18,871 | ||||||||||||
| 21,751 | SP AusNet | 22,679 | ||||||||||||
| 63,072 | Spark Infrastructure Group | 80,359 | ||||||||||||
| 87,736 | Transurban Group | 481,273 | ||||||||||||
| 32,103 | Woodside Petroleum | 1,222,384 | ||||||||||||
| 42,462 | WorleyParsons | 1,232,445 | ||||||||||||
Total Australia | 3,799,777 | |||||||||||||
Austria – 0.4% | ||||||||||||||
| 25,435 | Erste Group Bank | 542,235 | ||||||||||||
| 579 | Flughafen Wien | 26,024 | ||||||||||||
| 4,760 | Oesterreichische Post | 143,560 | ||||||||||||
| 224 | Verbund AG | 6,505 | ||||||||||||
Total Austria | 718,324 | |||||||||||||
Belgium – 0.6% | ||||||||||||||
| 17,528 | Anheuser-Busch InBev | 972,035 | ||||||||||||
| 718 | Elia System Operator | 29,136 | ||||||||||||
Total Belgium | 1,001,171 | |||||||||||||
Brazil – 1.5% | ||||||||||||||
| 9,189 | Companhia de Concessoes Rodoviarias | 253,268 | ||||||||||||
| 3,656 | Companhia de Gas de Sao Paulo, Class A | 74,745 | ||||||||||||
| 3,060 | Companhia de Saneamento Basico do Estado de Sao Paulo – ADR | 166,036 | ||||||||||||
| 658 | Companhia de Saneamento de Minas Gerais | 12,303 | ||||||||||||
| 840 | Companhia de Transmissao de Energia Electrica Paulista | 24,224 | ||||||||||||
| 32,550 | Companhia Energetica de Minas Gerais – ADR | 554,652 | ||||||||||||
| 686 | Companhia Energetica do Ceara-COELCE, Class A | 13,865 | ||||||||||||
| 3,970 | Companhia Paranaense de Energia-Copel – ADR | 80,115 | ||||||||||||
| 950 | CPFL Energia – ADR | 24,690 | ||||||||||||
| 5,941 | EcoRodovias Infraestructura e Logistica — | 44,812 | ||||||||||||
| 20,866 | Energias do Brasil | 451,144 | ||||||||||||
| 29,856 | Itau Unibanco Holding – ADR | 570,847 | ||||||||||||
| 6,728 | Santos Brasil Participacoes | 99,734 | ||||||||||||
| 8,441 | Wilson Sons – BDR | 120,947 | ||||||||||||
Total Brazil | 2,491,382 | |||||||||||||
Canada – 4.6% | ||||||||||||||
| 4,758 | Agrium | 391,536 | ||||||||||||
| 14,611 | Algonquin Power & Utilities | 82,088 | ||||||||||||
| 2,406 | ATCO, Class I | 146,955 | ||||||||||||
| 16,196 | Bank of Nova Scotia | 852,072 | ||||||||||||
| Nuveen Investments | 31 |
Portfolio of Investments
Nuveen International Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Canada (continued) | ||||||||||||||
| 1,878 | Brookfield Renewable Power Fund | $ | 51,455 | |||||||||||
| 30,847 | Cameco | 661,051 | ||||||||||||
| 25,561 | Cenovus Energy | 875,498 | ||||||||||||
| 1,927 | Emera | 63,276 | ||||||||||||
| 23,578 | Enbridge | 818,392 | ||||||||||||
| 36,560 | EnCana | 793,004 | ||||||||||||
| 263 | Just Energy | 2,839 | ||||||||||||
| 440 | Keyera | 20,072 | ||||||||||||
| 119,749 | Lundin Mining — | 469,745 | ||||||||||||
| 63,154 | Manulife Financial | 834,264 | ||||||||||||
| 3,087 | Pembina Pipeline | 84,023 | ||||||||||||
| 26,887 | Suncor Energy | 857,964 | ||||||||||||
| 2,752 | TransCanada | 118,446 | ||||||||||||
| 4,025 | Veresen | 58,189 | ||||||||||||
| 347 | Westshore Terminals Investment | 8,463 | ||||||||||||
| 29,727 | Yamana Gold | 445,013 | ||||||||||||
Total Canada | 7,634,345 | |||||||||||||
Chile – 0.4% | ||||||||||||||
| 18,688 | Empresa Electrica Del Norte Grande | 51,100 | ||||||||||||
| 2,641 | Empresa Nacional de Electrcidad – ADR | 127,402 | ||||||||||||
| 8,007 | Sociedad Quimica y Minera de Chile – ADR | 468,409 | ||||||||||||
Total Chile | 646,911 | |||||||||||||
China – 1.7% | ||||||||||||||
| 598,000 | Agile Property Holdings | 539,022 | ||||||||||||
| 65,350 | China Merchants Bank | 131,952 | ||||||||||||
| 138,951 | China Suntien Green Energy, Class H | 31,601 | ||||||||||||
| 7,872 | ENN Energy Holdings | 28,446 | ||||||||||||
| 773,000 | Industrial & Commercial Bank of China, Class H | 482,710 | ||||||||||||
| 13,421 | New Oriental Education & Technology Group – ADR — | 397,798 | ||||||||||||
| 69,500 | Ping An Insurance | 515,440 | ||||||||||||
| 24,900 | Tencent Holdings | 575,877 | ||||||||||||
| 55,203 | Zhejiang Expressway, Class H | 36,306 | ||||||||||||
Total China | 2,739,152 | |||||||||||||
Czech Republic – 0.0% | ||||||||||||||
| 1,080 | CEZ | 45,669 | ||||||||||||
Denmark – 0.7% | ||||||||||||||
| 10,361 | Novo Nordisk, Class B | 1,099,991 | ||||||||||||
Finland – 0.6% | ||||||||||||||
| 3,019 | Fortum Oyj | 73,477 | ||||||||||||
| 144,016 | Nokia Oyj | 969,110 | ||||||||||||
Total Finland | 1,042,587 | |||||||||||||
France – 4.1% | ||||||||||||||
| 685 | Aeroports de Paris | 53,781 | ||||||||||||
| 18,493 | Alstom | 688,642 | ||||||||||||
| 53,576 | AXA | 861,715 | ||||||||||||
| 41,231 | Carrefour | 1,090,890 | ||||||||||||
| 32 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
France (continued) | ||||||||||||||
| 10,471 | Danone | $ | 725,880 | |||||||||||
| 1,027 | Electricite de France | 30,736 | ||||||||||||
| 28,086 | Groupe Eurotunnel | 252,997 | ||||||||||||
| 7,427 | Iliad | 867,329 | ||||||||||||
| 6,037 | L’oreal | 664,706 | ||||||||||||
| 28 | Rubis | 1,591 | ||||||||||||
| 29,637 | Total | 1,546,377 | ||||||||||||
Total France | 6,784,644 | |||||||||||||
Germany – 8.3% | ||||||||||||||
| 29,628 | Adidas | 2,086,605 | ||||||||||||
| 57,278 | Aixtron | 810,995 | ||||||||||||
| 15,136 | Allianz | 1,684,064 | ||||||||||||
| 3,691 | BASF | 269,428 | ||||||||||||
| 14,125 | Bayer | 899,932 | ||||||||||||
| 13,310 | BMW | 1,081,226 | ||||||||||||
| 13,172 | Deutsche Boerse — | 725,959 | ||||||||||||
| 60,016 | E.ON | 1,447,285 | ||||||||||||
| 3,694 | Fraport Frankfuort Airport | 232,581 | ||||||||||||
| 3,234 | Hamburger Hafen und Logistik | 99,430 | ||||||||||||
| 12,240 | Henkel KGAA | 727,608 | ||||||||||||
| 13,917 | SAP | 841,532 | ||||||||||||
| 11,682 | Siemens | 1,224,518 | ||||||||||||
| 34,761 | Symrise | 899,787 | ||||||||||||
| 7,094 | Wacker Chemie | 714,008 | ||||||||||||
Total Germany | 13,744,958 | |||||||||||||
Hong Kong – 2.5% | ||||||||||||||
| 56,236 | Beijing Capital International Airport, Class H | 25,253 | ||||||||||||
| 12,070 | Beijing Enterprises Holdings | 66,794 | ||||||||||||
| 66,658 | Cheung Kong Holdings | 826,288 | ||||||||||||
| 51,957 | Cheung Kong Infrastructure Holdings | 278,319 | ||||||||||||
| 286,034 | China Everbright International | 82,580 | ||||||||||||
| 37,588 | China Merchants Holdings International | 115,986 | ||||||||||||
| 4,170 | China Resources Gas Group | 6,059 | ||||||||||||
| 352,000 | China Resources Land | 515,221 | ||||||||||||
| 272,000 | China Unicom | 546,888 | ||||||||||||
| 9,481 | CLP Holdings | 84,458 | ||||||||||||
| 20,626 | Cosco Pacific | 28,699 | ||||||||||||
| 72,137 | Hong Kong & China Gas | 162,638 | ||||||||||||
| 49,310 | Hopewell Highway Infrastructure | 27,199 | ||||||||||||
| 446,000 | Li & Fung | 859,529 | ||||||||||||
| 179,299 | Li Ning | 170,935 | ||||||||||||
| 67,903 | MTR | 219,191 | ||||||||||||
| 15,917 | Power Assets Holdings | 120,950 | ||||||||||||
| 39,943 | Towngas China | 21,487 | ||||||||||||
Total Hong Kong | 4,158,474 | |||||||||||||
| Nuveen Investments | 33 |
Portfolio of Investments
Nuveen International Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
India – 0.4% | ||||||||||||||
| 1,815 | GAIL India – GDR | $ | 95,560 | |||||||||||
| 17,017 | HDFC Bank – ADR | 538,758 | ||||||||||||
| 30,369 | Power Grid | 65,074 | ||||||||||||
Total India | 699,392 | |||||||||||||
Ireland – 2.0% | ||||||||||||||
| 37,072 | Covidien | 1,743,867 | ||||||||||||
| 63,955 | CRH | 1,157,112 | ||||||||||||
| 44,889 | WPP | 464,648 | ||||||||||||
Total Ireland | 3,365,627 | |||||||||||||
Israel – 0.8% | ||||||||||||||
| 16,099 | Nice Systems – ADR — | 575,700 | ||||||||||||
| 17,249 | Teva Pharmaceutical Industries – ADR | 704,622 | ||||||||||||
Total Israel | 1,280,322 | |||||||||||||
Italy – 1.9% | ||||||||||||||
| 22,571 | Atlantia | 343,787 | ||||||||||||
| 2,068 | Autostrada Torino-Milano | 21,629 | ||||||||||||
| 81,931 | Enel | 386,559 | ||||||||||||
| 47,024 | Hera — | 76,888 | ||||||||||||
| 5,711 | IREN | 6,908 | ||||||||||||
| 161,100 | Prada — | 807,698 | ||||||||||||
| 32,995 | Saipem | 1,474,297 | ||||||||||||
| 4,195 | Societa Inizative Autostradali e Servizi — | 34,670 | ||||||||||||
| 43 | Terna-Rete Elettrica Nationale | 165 | ||||||||||||
Total Italy | 3,152,601 | |||||||||||||
Japan – 16.2% | ||||||||||||||
| 56,309 | AMADA | 373,564 | ||||||||||||
| 58,309 | Canon | 2,647,101 | ||||||||||||
| 7,400 | FANUC | 1,196,508 | ||||||||||||
| 280 | INPEX | 1,848,583 | ||||||||||||
| 7,818 | Japan Airport Terminal | 103,422 | ||||||||||||
| 4,978 | Kamigumi | 43,467 | ||||||||||||
| 2,992 | Keyence | 760,599 | ||||||||||||
| 45,900 | KOMATSU | 1,134,869 | ||||||||||||
| 73,362 | Mitsubishi | 1,508,834 | ||||||||||||
| 46,841 | Mitsui Sumitomo Insurance Group | 917,445 | ||||||||||||
| 51,000 | NGK Insulators | 587,925 | ||||||||||||
| 8,991 | Nintendo | 1,356,478 | ||||||||||||
| 43,655 | NKSJ Holdings | 873,081 | ||||||||||||
| 27,623 | Nomura Research Institute | 621,244 | ||||||||||||
| 1,189 | Rakuten | 1,303,424 | ||||||||||||
| 21,493 | SECOM | 1,016,472 | ||||||||||||
| 10,146 | SMC | 1,578,126 | ||||||||||||
| 18,545 | Sugi Holdings | 483,980 | ||||||||||||
| 60,993 | Sumitomo Metal Mining | 839,600 | ||||||||||||
| 449,493 | Sumitomo Mitsui Trust | 1,538,221 | ||||||||||||
| 34 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Japan (continued) | ||||||||||||||
| 84,431 | Suzuki Motor | $ | 1,790,709 | |||||||||||
| 16,600 | TERUMO | 843,447 | ||||||||||||
| 333,203 | The Bank of Yokohama | 1,525,542 | ||||||||||||
| 28,077 | THK | 547,193 | ||||||||||||
| 24,004 | Tokyo Gas | 103,369 | ||||||||||||
| 42,900 | Toyota Motor | 1,424,313 | ||||||||||||
Total Japan | 26,967,516 | |||||||||||||
Lebanon – 0.1% | ||||||||||||||
| 22,897 | Equatorial Energia | 149,770 | ||||||||||||
Luxembourg – 0.7% | ||||||||||||||
| 9,547 | Millicom International Cellular | 1,052,905 | ||||||||||||
| 5,626 | SES | 143,697 | ||||||||||||
Total Luxembourg | 1,196,602 | |||||||||||||
Malaysia – 0.2% | ||||||||||||||
| 137,695 | Sime Darby Berhad | 397,206 | ||||||||||||
Mexico – 0.4% | ||||||||||||||
| 623 | Grupo Aeroportuario del Sureste – ADR | 35,885 | ||||||||||||
| 47,789 | OHL Mexico — | 74,264 | ||||||||||||
| 18,311 | Wal-Mart de Mexico – ADR | 470,593 | ||||||||||||
Total Mexico | 580,742 | |||||||||||||
Netherlands – 1.2% | ||||||||||||||
| 37,242 | Heineken | 1,809,280 | ||||||||||||
| 3,468 | Koninklijke Vopak | 178,748 | ||||||||||||
Total Netherlands | 1,988,028 | |||||||||||||
New Zealand – 0.2% | ||||||||||||||
| 22,643 | Auckland International Airport | �� | 42,752 | |||||||||||
| 60,486 | Infratil | 90,054 | ||||||||||||
| 18,534 | Port of Tauranga | 145,062 | ||||||||||||
Total New Zealand | 277,868 | |||||||||||||
Norway – 1.5% | ||||||||||||||
| 3,666 | Hafslund, Class B | 37,443 | ||||||||||||
| 161,199 | Norsk Hydro | 835,012 | ||||||||||||
| 95,370 | Telenor ASA | 1,698,801 | ||||||||||||
Total Norway | 2,571,256 | |||||||||||||
Philippines – 0.1% | ||||||||||||||
| 51,453 | International Container Terminal Services | 66,429 | ||||||||||||
| 331,750 | Metro Pacific Investments | 25,229 | ||||||||||||
Total Philppines | 91,658 | |||||||||||||
Portugal – 0.3% | ||||||||||||||
| 3,593 | Brisa Auto-Estradas de Portugal | 12,229 | ||||||||||||
| 174,384 | Energias de Portugal | 547,830 | ||||||||||||
Total Portugal | 560,059 | |||||||||||||
Russia – 0.3% | ||||||||||||||
| 46,383 | Gazprom – ADR | 538,507 | ||||||||||||
| Nuveen Investments | 35 |
Portfolio of Investments
Nuveen International Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Singapore – 1.5% | ||||||||||||||
| 180,997 | CitySpring Infrastructure Trust | $ | 53,922 | |||||||||||
| 143,352 | ComfortDelGro | 158,843 | ||||||||||||
| 89,634 | DBS Group Holdings | 875,524 | ||||||||||||
| 1,427,437 | Golden Agri-Resources | 730,739 | ||||||||||||
| 10,886 | Hyflux | 12,363 | ||||||||||||
| 55,020 | Parkway Life – REIT | 78,515 | ||||||||||||
| 38,004 | SembCorp Industries | 125,296 | ||||||||||||
| 62,966 | Singapore Airport Terminal Services | 122,683 | ||||||||||||
| 209,009 | Singapore Post | 170,197 | ||||||||||||
| 19,275 | Singapore Telecommunications | 48,733 | ||||||||||||
| 123,890 | SMRT | 181,415 | ||||||||||||
Total Signapore | 2,558,230 | |||||||||||||
South Africa – 0.7% | ||||||||||||||
| 70,688 | MTN Group | 1,228,614 | ||||||||||||
South Korea – 0.5% | ||||||||||||||
| 2,028 | Samsung Electronics – GDR | 885,717 | ||||||||||||
Spain – 1.1% | ||||||||||||||
| 80,851 | Banco Santander | 684,308 | ||||||||||||
| 26,649 | Distribuidora International de Alimentacion — | 121,869 | ||||||||||||
| 2,444 | Enagas | 48,058 | ||||||||||||
| 3,964 | Ferrovial | 50,383 | ||||||||||||
| 46,924 | Grifols — | 872,434 | ||||||||||||
Total Spain | 1,777,052 | |||||||||||||
Sweden – 0.7% | ||||||||||||||
| 115,297 | Ericsson | 1,201,802 | ||||||||||||
Switzerland – 9.1% | ||||||||||||||
| 45,286 | ABB | 852,528 | ||||||||||||
| 20,546 | Adecco | 986,767 | ||||||||||||
| 19,122 | Compagnie Financiere Richemont | 1,089,277 | ||||||||||||
| 155 | Flughafen Zuerich | 59,441 | ||||||||||||
| 48,149 | Foster Wheeler | 1,026,537 | ||||||||||||
| 15,888 | Holcim | 1,006,125 | ||||||||||||
| 45,372 | Nestle | 2,624,212 | ||||||||||||
| 47,925 | Noble | 1,722,424 | ||||||||||||
| 22,252 | Novartis | 1,253,573 | ||||||||||||
| 18,986 | Roche Holding | 3,115,022 | ||||||||||||
| 40,849 | UBS | 516,258 | ||||||||||||
| 57,389 | Xstrata | 955,902 | ||||||||||||
Total Switzerland | 15,208,066 | |||||||||||||
Taiwan – 0.3% | ||||||||||||||
| 181,200 | Hon Hai Precision Industry | 496,738 | ||||||||||||
Turkey – 0.6% | ||||||||||||||
| 263,570 | Turkiye Garanti Bankasi | 924,754 | ||||||||||||
United Kingdom – 15.4% | ||||||||||||||
| 50,980 | Anglo American | 1,868,949 | ||||||||||||
| 36 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
United Kingdom (continued) | ||||||||||||||
| 97,399 | ARM Holdings | $ | 913,882 | |||||||||||
| 54,836 | BG Group | 1,189,063 | ||||||||||||
| 38,012 | BHP Billiton | 1,196,977 | ||||||||||||
| 20,969 | BP – ADR | 926,410 | ||||||||||||
| 65,480 | British Sky Broadcasting Group | 738,317 | ||||||||||||
| 76,905 | Centrica | 366,113 | ||||||||||||
| 96,936 | Diageo | 2,006,163 | ||||||||||||
| 106,289 | GlaxoSmithKline | 2,385,373 | ||||||||||||
| 23,784 | HSBC Holdings – ADR | 1,038,409 | ||||||||||||
| 10,409 | National Grid – ADR | 521,179 | ||||||||||||
| 2,986 | Pennon Group | 33,356 | ||||||||||||
| 121,570 | Prudential | 1,255,708 | ||||||||||||
| 173,757 | Reed Elsevier | 1,487,501 | ||||||||||||
| 111,150 | Rolls-Royce Holdings | 1,251,155 | ||||||||||||
| 29,885 | Schroders | 684,013 | ||||||||||||
| 7,597 | Scottish & Southern Energy | 164,142 | ||||||||||||
| 4,226 | Severn Trent | 102,863 | ||||||||||||
| 62,089 | Standard Chartered | 1,448,803 | ||||||||||||
| 184,923 | Tesco | 1,192,274 | ||||||||||||
| 27,557 | United Utilities Group | 268,632 | ||||||||||||
| 71,825 | Vedanta Resources | 1,466,021 | ||||||||||||
| 55,858 | Vodafone Group – ADR | 1,555,087 | ||||||||||||
| 45,843 | Willis Group Holdings | 1,664,559 | ||||||||||||
Total United Kingdom | 25,724,949 | |||||||||||||
United States – 3.9% | ||||||||||||||
| 1,076 | American States Water | 37,595 | ||||||||||||
| 10,354 | American Tower, Class A — | 570,505 | ||||||||||||
| 1,105 | American Water Works | 33,736 | ||||||||||||
| 13,624 | Brookfield Infrastructure Partners | 341,826 | ||||||||||||
| 16,585 | Bunge | 1,024,455 | ||||||||||||
| 21 | California Water Service Group | 390 | ||||||||||||
| 3,310 | Chesapeake Utilities | 140,311 | ||||||||||||
| 940 | Consolidated Edison | 54,398 | ||||||||||||
| 7,795 | Crown Castle International — | 322,401 | ||||||||||||
| 3,687 | Dominion Resources | 190,212 | ||||||||||||
| 10,322 | El Paso | 258,153 | ||||||||||||
| 932 | Exelon | 41,371 | ||||||||||||
| 2,655 | ITC Holdings | 192,965 | ||||||||||||
| 257 | Kinder Morgan Management | 7,350 | ||||||||||||
| 1,900 | NextEra Energy | 107,160 | ||||||||||||
| 4,585 | NiSource | 101,283 | ||||||||||||
| 1,638 | Northeast Utilities — | 56,626 | ||||||||||||
| 1,080 | Northwest Natural Gas | 50,458 | ||||||||||||
| 4,039 | OGE Energy | 208,978 | ||||||||||||
| 14,536 | Philip Morris International | 1,015,630 | ||||||||||||
| Nuveen Investments | 37 |
Portfolio of Investments (Unaudited)
Nuveen International Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
United States (continued) | ||||||||||||||
| 2,795 | PPL | $ | 82,089 | |||||||||||
| 14,779 | Questar | 284,791 | ||||||||||||
| 522 | Republic Services | 14,856 | ||||||||||||
| 3,496 | Schlumberger | 256,851 | ||||||||||||
| 1,176 | Sempra Energy | 63,186 | ||||||||||||
| 60 | SJW | 1,397 | ||||||||||||
| 13,171 | Spectra Energy | 377,086 | ||||||||||||
| 2,852 | Standard Parking — | 50,167 | ||||||||||||
| 3 | UGI | 86 | ||||||||||||
| 2,583 | UIL Holdings | 88,029 | ||||||||||||
| 740 | Unitil | 19,736 | ||||||||||||
| 5,101 | Waste Connections | 173,689 | ||||||||||||
| 5,984 | Wisconsin Energy | 194,061 | ||||||||||||
| 5,062 | Xcel Energy | 130,852 | ||||||||||||
Total United States | 6,492,679 | |||||||||||||
Total Common Stocks (cost $152,809,180) | 146,223,140 | |||||||||||||
EXCHANGE-TRADED FUNDS – 4.0% | ||||||||||||||
United States – 4.0% | ||||||||||||||
| 97,640 | iShares MSCI Malysia Index Fund | 1,355,243 | ||||||||||||
| 11,127 | iShares MSCI Indonesia Investment Market Index Fund | 331,918 | ||||||||||||
| 62,478 | Market Vectors Agribusiness | 3,125,774 | ||||||||||||
| 31,966 | Market Vectors Gold Miners | 1,880,560 | ||||||||||||
Total Exchange-Traded Funds (cost $7,292,585) | 6,693,495 | |||||||||||||
RIGHTS – 0.0% | ||||||||||||||
Spain – 0.0% | ||||||||||||||
| 80,851 | Banco Santander — | 13,984 | ||||||||||||
Total Rights (Cost $0) | 13,984 | |||||||||||||
| Shares/ Principal Amount (000) | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 7.8% | ||||||||||||||
Money Market Funds – 2.7% | ||||||||||||||
| 4,510,519 | State Street Institutional Liquid Reserves Fund, 0.150% W | $ | 4,510,519 | |||||||||||
U.S. Treasury Obligations – 5.1% | ||||||||||||||
U.S. Treasury Bills ¨ | ||||||||||||||
| $ | 7,440 | 0.022%, 03/01/2012 | 7,439,449 | |||||||||||
| 1,032 | 0.025%, 03/08/2012 | 1,031,908 | ||||||||||||
| $ | 8,472 | Total U.S. Treasury Obligations | 8,471,357 | |||||||||||
Total Short-Term Investments (cost $12,981,998) | 12,981,876 | |||||||||||||
Total Investments (cost $173,083,763) – 99.6% | 165,912,495 | |||||||||||||
Other Assets Less Liabilities – 0.4% ¯ | 625,209 | |||||||||||||
Net Assets – 100.0% | $ | 166,537,704 | ||||||||||||
| 38 | Nuveen Investments |
Investment in Derivatives at October 31, 2011
Futures Contracts outstanding:
| Description | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Amsterdam Index | Long | 53 | 11/11 | $ | 4,490,369 | $ | 136,102 | |||||||||||||
E-Mini MSCI EAFE | Short | (44 | ) | 12/11 | (3,257,980 | ) | (230,218 | ) | ||||||||||||
E-Mini MSCI Emerging Market Index | Long | 53 | 12/11 | 2,587,990 | 26,461 | |||||||||||||||
Euro STOXX 50 Index | Long | 105 | 12/11 | 3,469,489 | 535,794 | |||||||||||||||
FTSE 100 Index | Long | 225 | 12/11 | 20,037,022 | 1,459,210 | |||||||||||||||
FTSE JSE Top 40 | Short | (120 | ) | 12/11 | (4,407,586 | ) | (237,512 | ) | ||||||||||||
Great Butlan Futures Index | Short | (9 | ) | 12/11 | (907,088 | ) | (44,416 | ) | ||||||||||||
Mexican Bolsa Index | Short | (169 | ) | 12/11 | (4,588,502 | ) | (314,273 | ) | ||||||||||||
NASDAQ 100 | Short | (38 | ) | 12/11 | (1,790,560 | ) | (80,028 | ) | ||||||||||||
Nikkei 225 Index | Long | 247 | 12/11 | 10,979,150 | 239,714 | |||||||||||||||
OMXS 30 Index | Long | 292 | 11/11 | 4,447,798 | 178,091 | |||||||||||||||
Russell 2000 Mini Index | Short | (113 | ) | 12/11 | (8,354,090 | ) | (532,061 | ) | ||||||||||||
SGX S&P CNX Nifty | Short | (422 | ) | 11/11 | (4,512,868 | ) | (198,340 | ) | ||||||||||||
S&P 500 Index | Short | (9 | ) | 12/11 | (2,810,925 | ) | (156,186 | ) | ||||||||||||
S&P TSX 60 | Short | (73 | ) | 12/11 | (10,204,986 | ) | 102,162 | |||||||||||||
SPI 200 | Long | 111 | 12/11 | 12,528,824 | 543,489 | |||||||||||||||
| $ | 1,427,989 | |||||||||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivatives instruments as listed within Investments in Derivatives at October 31, 2011. |
| ADR | American Depositary Receipt |
| BDR | Brazilian Depositary Receipt |
| GDR | Global Depositary Receipt |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 39 |
Portfolio of Investments
Nuveen International Select Fund
(formerly known as First American International Select Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 86.3% | ||||||||||||||||
Argentina – 0.3% | ||||||||||||||||
| 58,254 | YPF Sociedad Anonima | $ | 1,957,917 | |||||||||||||
Australia – 2.1% | ||||||||||||||||
| 170,856 | APA Group | 779,184 | ||||||||||||||
| 111,786 | Asciano Group | 178,702 | ||||||||||||||
| 138,003 | Australian Infrastructure Fund | 273,972 | ||||||||||||||
| 72,815 | BHP Billiton | 2,850,307 | ||||||||||||||
| 127,789 | DUET Group | 222,706 | ||||||||||||||
| 23,960 | Macquarie Atlas Roads Group — | 35,480 | ||||||||||||||
| 133,518 | MAp Group | 476,429 | ||||||||||||||
| 14,668 | QR National | 50,678 | ||||||||||||||
| 57,476 | SP AusNet | 59,929 | ||||||||||||||
| 169,055 | Spark Infrastructure Group | 215,390 | ||||||||||||||
| 231,815 | Transurban Group | 1,271,614 | ||||||||||||||
| 77,073 | Woodside Petroleum | 2,934,703 | ||||||||||||||
| 109,941 | WorleyParsons | 3,190,999 | ||||||||||||||
Total Australia | 12,540,093 | |||||||||||||||
Austria – 0.3% | ||||||||||||||||
| 63,791 | Erste Group Bank | 1,359,926 | ||||||||||||||
| 1,539 | Flughafen Wien | 69,173 | ||||||||||||||
| 12,625 | Oesterreichische Post | 380,765 | ||||||||||||||
| 592 | Verbund | 17,191 | ||||||||||||||
Total Austria | 1,827,055 | |||||||||||||||
Belgium – 0.4% | ||||||||||||||||
| 37,285 | Anheuser-Busch InBev | 2,067,683 | ||||||||||||||
| 2,128 | Elia System Operator | 86,353 | ||||||||||||||
Total Belgium | 2,154,036 | |||||||||||||||
Brazil – 7.2% | ||||||||||||||||
| 380,243 | Banco do Brasil | 5,802,701 | ||||||||||||||
| 225,840 | Cielo | 6,028,626 | ||||||||||||||
| 46,300 | Companhia de Bebidas das Americas – ADR | 1,561,236 | ||||||||||||||
| 74,674 | Companhia de Concessoes Rodoviarias | 2,058,173 | ||||||||||||||
| 9,832 | Companhia de Gas de Sao Paulo, Class A | 201,010 | ||||||||||||||
| 8,086 | Companhia de Saneamento Basico do Estado de Sao Paulo – ADR | 438,746 | ||||||||||||||
| 1,657 | Companhia de Saneamento de Minas Gerais | 30,981 | ||||||||||||||
| 2,181 | Companhia de Transmissao de Energia Electrica Paulista | 62,895 | ||||||||||||||
| 1,718 | Companhia Energetica do Ceara-Coelce, Class A | 34,723 | ||||||||||||||
| 253,954 | Companhia Energetica de Minas Gerais – ADR | 4,327,376 | ||||||||||||||
| 10,473 | Companhia Paranaense de Energia-Copel – ADR | 211,345 | ||||||||||||||
| 208,500 | Companhia Siderurgica Nacional – ADR | 1,951,560 | ||||||||||||||
| 2,511 | CPFL Energia – ADR | 65,261 | ||||||||||||||
| 15,955 | EcoRodovias Infraestructura e Logistica | 120,347 | ||||||||||||||
| 55,653 | Energias do Brasil | 1,203,273 | ||||||||||||||
| 190,249 | Hypermarcas | 1,034,992 | ||||||||||||||
| 117,202 | Itau Unibanco Holding – ADR | 2,240,902 | ||||||||||||||
| 40 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Brazil (continued) | ||||||||||||||||
| 104,200 | Natura Cosmeticos | $ | 2,033,200 | |||||||||||||
| 356,630 | Redecard | 5,928,427 | ||||||||||||||
| 17,919 | Santos Brasil Participacoes | 265,625 | ||||||||||||||
| 162,995 | Souza Cruz | 2,022,188 | ||||||||||||||
| 10,700 | Usinas Siderurgicas de Minas Gerais, Class A | 74,850 | ||||||||||||||
| 167,300 | Vale – ADR | 4,251,093 | ||||||||||||||
| 22,634 | Wilson Sons – BDR | 324,313 | ||||||||||||||
Total Brazil | 42,273,843 | |||||||||||||||
Canada – 3.9% | ||||||||||||||||
| 11,030 | Agrium | 907,659 | ||||||||||||||
| 39,187 | Algonquin Power & Utilities | 220,163 | ||||||||||||||
| 6,462 | ATCO, Class I | 394,689 | ||||||||||||||
| 41,917 | Bank of Nova Scotia | 2,205,253 | ||||||||||||||
| 4,898 | Brookfield Renewable Power Fund | 134,201 | ||||||||||||||
| 102,716 | Cameco | 2,201,204 | ||||||||||||||
| 59,257 | Cenovus Energy | 2,029,630 | ||||||||||||||
| 5,040 | Emera | 165,497 | ||||||||||||||
| 63,081 | Enbridge | 2,189,542 | ||||||||||||||
| 84,737 | EnCana | 1,837,987 | ||||||||||||||
| 112,500 | First Quantum Minerals | 2,360,045 | ||||||||||||||
| 659 | Just Energy | 7,114 | ||||||||||||||
| 1,130 | Keyera | 51,549 | ||||||||||||||
| 277,700 | Lundin Mining — | 1,089,347 | ||||||||||||||
| 171,252 | Manulife Financial | 2,262,239 | ||||||||||||||
| 8,132 | Pembina Pipeline | 221,341 | ||||||||||||||
| 84,813 | Suncor Energy | 2,706,383 | ||||||||||||||
| 7,363 | TransCanada | 316,904 | ||||||||||||||
| 10,616 | Veresen | 153,475 | ||||||||||||||
| 927 | Westshore Terminals Investment | 22,609 | ||||||||||||||
| 68,919 | Yamana Gold | 1,031,717 | ||||||||||||||
Total Canada | 22,508,548 | |||||||||||||||
Chile – 0.4% | ||||||||||||||||
| 49,802 | Empresa Electrica Del Norte Grande | 136,177 | ||||||||||||||
| 6,979 | Empresa Nacional de Electrcidad – ADR | 336,667 | ||||||||||||||
| 31,260 | Sociedad Quimica y Minera de Chile – ADR | 1,828,710 | ||||||||||||||
Total Chile | 2,301,554 | |||||||||||||||
China – 2.5% | ||||||||||||||||
| 2,424,000 | Agile Property Holdings | 2,184,933 | ||||||||||||||
| 1,931,350 | China Construction Bank, Class H | 1,419,031 | ||||||||||||||
| 256,400 | China Merchants Bank | 517,714 | ||||||||||||||
| 364,789 | China Suntien Green Energy, Class H | 82,963 | ||||||||||||||
| 19,484 | ENN Energy Holdings | 70,406 | ||||||||||||||
| 3,017,000 | Industrial & Commercial Bank of China, Class H | 1,884,006 | ||||||||||||||
| 21,700 | NetEase.com – ADR — | 1,027,929 | ||||||||||||||
| 51,896 | New Oriental Education & Technology Group – ADR — | 1,538,197 | ||||||||||||||
| Nuveen Investments | 41 |
Portfolio of Investments
Nuveen International Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
China (continued) | ||||||||||||||||
| 285,000 | Ping An Insurance | $ | 2,113,674 | |||||||||||||
| 101,500 | Tencent Holdings | 2,347,449 | ||||||||||||||
| 249,500 | Weichai Power, Class H | 1,255,449 | ||||||||||||||
| 132,658 | Zhejiang Expressway, Class H | 87,246 | ||||||||||||||
Total China | 14,528,997 | |||||||||||||||
Czech Republic – 0.0% | ||||||||||||||||
| 2,834 | CEZ | 119,838 | ||||||||||||||
Denmark – 0.3% | ||||||||||||||||
| 16,879 | Novo Nordisk, Class B | 1,791,983 | ||||||||||||||
Egypt – 0.8% | ||||||||||||||||
| 370,485 | Commercial International Bank | 1,648,578 | ||||||||||||||
| 34,206 | Eastern Tobacco | 539,040 | ||||||||||||||
| 23,297 | Mobinil | 403,195 | ||||||||||||||
| 45,175 | Orascom Construction Industries | 1,824,147 | ||||||||||||||
Total Egypt | 4,414,960 | |||||||||||||||
Finland – 0.4% | ||||||||||||||||
| 8,079 | Fortum Oyj | 196,628 | ||||||||||||||
| 333,869 | Nokia Oyj | 2,246,665 | ||||||||||||||
Total Finland | 2,443,293 | |||||||||||||||
France – 2.6% | ||||||||||||||||
| 1,836 | Aeroports de Paris | 144,149 | ||||||||||||||
| 42,870 | Alstom | 1,596,393 | ||||||||||||||
| 125,267 | AXA | 2,014,788 | ||||||||||||||
| 95,584 | Carrefour | 2,528,962 | ||||||||||||||
| 27,469 | CFAO | 1,061,074 | ||||||||||||||
| 2,755 | Electricite de France | 82,451 | ||||||||||||||
| 24,696 | DANONE | 1,711,998 | ||||||||||||||
| 75,195 | Groupe Eurotunnel | 677,352 | ||||||||||||||
| 13,999 | L’oreal | 1,541,365 | ||||||||||||||
| 75 | Rubis | 4,262 | ||||||||||||||
| 68,703 | Total | 3,584,733 | ||||||||||||||
Total France | 14,947,527 | |||||||||||||||
Germany – 5.3% | ||||||||||||||||
| 66,448 | Adidas | 4,679,719 | ||||||||||||||
| 104,351 | Aixtron | 1,477,499 | ||||||||||||||
| 35,084 | Allianz | 3,903,521 | ||||||||||||||
| 8,551 | BASF | 624,188 | ||||||||||||||
| 29,907 | Bayer | 1,905,435 | ||||||||||||||
| 26,413 | BMW | 2,145,637 | ||||||||||||||
| 32,851 | Deutsche Boerse — | 1,810,543 | ||||||||||||||
| 139,860 | E.ON | 3,372,722 | ||||||||||||||
| 9,822 | Fraport Frankfurt Airport | 618,411 | ||||||||||||||
| 8,681 | Hamburger Hafen und Logistik | 266,900 | ||||||||||||||
| 28,376 | Henkel KGAA | 1,686,814 | ||||||||||||||
| 32,263 | SAP | 1,950,877 | ||||||||||||||
| 42 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Germany (continued) | ||||||||||||||||
| 27,085 | Siemens | $ | 2,839,074 | |||||||||||||
| 80,590 | Symrise | 2,086,070 | ||||||||||||||
| 16,317 | Wacker Chemie | 1,642,300 | ||||||||||||||
Total Germany | 31,009,710 | |||||||||||||||
Hong Kong – 2.7% | ||||||||||||||||
| 130,923 | Beijing Capital International Airport, Class H | 58,791 | ||||||||||||||
| 31,158 | Beijing Enterprises Holdings | 172,425 | ||||||||||||||
| 154,975 | Cheung Kong Holdings | 1,921,059 | ||||||||||||||
| 139,053 | Cheung Kong Infrastructure Holdings | 744,868 | ||||||||||||||
| 755,109 | China Everbright International | 218,004 | ||||||||||||||
| 2,619,000 | China Longyuan Power, Class H | 2,174,891 | ||||||||||||||
| 100,937 | China Merchants Holdings International | 311,464 | ||||||||||||||
| 6,275 | China Resources Gas Group | 9,117 | ||||||||||||||
| 1,406,000 | China Resources Land | 2,057,957 | ||||||||||||||
| 1,068,000 | China Unicom | 2,147,338 | ||||||||||||||
| 33,972 | CLP Holdings | 302,627 | ||||||||||||||
| 52,475 | Cosco Pacific | 73,015 | ||||||||||||||
| 193,230 | Hong Kong & China Gas | 435,652 | ||||||||||||||
| 129,629 | Hopewell Highway Infrastructure | 71,501 | ||||||||||||||
| 2,458,000 | Huabao International Holdings | 1,561,464 | ||||||||||||||
| 1,162,000 | Li & Fung | 2,239,400 | ||||||||||||||
| 415,918 | Li Ning | 396,515 | ||||||||||||||
| 178,731 | MTR | 576,940 | ||||||||||||||
| 42,654 | Power Assets Holdings | 324,120 | ||||||||||||||
| 107,270 | Towngas China | 57,705 | ||||||||||||||
Total Hong Kong | 15,854,853 | |||||||||||||||
Hungary – 0.3% | ||||||||||||||||
| 96,008 | OTP Bank | 1,505,425 | ||||||||||||||
India – 2.0% | ||||||||||||||||
| 172,631 | Bank of India | 1,173,888 | ||||||||||||||
| 352,945 | Bharat Heavy Electricals | 2,291,475 | ||||||||||||||
| 4,795 | GAIL India – GDR | 252,457 | ||||||||||||||
| 66,444 | HDFC Bank – ADR | 2,103,617 | ||||||||||||||
| 17,400 | Infosys Technologies – ADR | 1,019,466 | ||||||||||||||
| 158,123 | Jindal Steel & Power | 1,811,739 | ||||||||||||||
| 80,964 | Power Grid | 173,487 | ||||||||||||||
| 144,748 | Punjab National Bank | 2,886,724 | ||||||||||||||
Total India | 11,712,853 | |||||||||||||||
Indonesia – 1.6% | ||||||||||||||||
| 1,401,566 | Bank of Mandiri | 1,118,010 | ||||||||||||||
| 2,732,500 | Perusahaan Gas Negara | 901,336 | ||||||||||||||
| 1,415,300 | Semen Gresik Persero | 1,505,897 | ||||||||||||||
| 547,700 | Tambang Batubara Bukit Asam | 1,123,157 | ||||||||||||||
| 98,500 | Telekomunikasi Indonesia – ADR | 3,329,300 | ||||||||||||||
| 469,519 | United Tractors | 1,291,438 | ||||||||||||||
Total Indonesia | 9,269,138 | |||||||||||||||
| Nuveen Investments | 43 |
Portfolio of Investments
Nuveen International Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Ireland – 1.3% | ||||||||||||||||
| 85,940 | Covidien | $ | 4,042,618 | |||||||||||||
| 148,270 | CRH | 2,682,590 | ||||||||||||||
| 104,067 | WPP | 1,077,203 | ||||||||||||||
Total Ireland | 7,802,411 | |||||||||||||||
Israel – 0.5% | ||||||||||||||||
| 35,041 | NICE Systems – ADR — | 1,253,066 | ||||||||||||||
| 44,374 | Teva Pharmaceutical Industries – ADR | 1,812,678 | ||||||||||||||
Total Israel | 3,065,744 | |||||||||||||||
Italy – 1.2% | ||||||||||||||||
| 60,410 | Atlantia | 920,126 | ||||||||||||||
| 5,534 | Autostrada Torino-Milano | 57,879 | ||||||||||||||
| 189,940 | Enel Green Power | 896,156 | ||||||||||||||
| 126,290 | Hera | 206,495 | ||||||||||||||
| 15,095 | IREN | 18,258 | ||||||||||||||
| 350,700 | Prada — | 1,758,285 | ||||||||||||||
| 71,325 | Saipem | 3,186,975 | ||||||||||||||
| 11,083 | Societa Iniziative Autostradali e Servizi | 91,597 | ||||||||||||||
| 116 | Terna-Rete Elettrica Nationale | 446 | ||||||||||||||
Total Italy | 7,136,217 | |||||||||||||||
Japan – 10.5% | ||||||||||||||||
| 130,749 | AMADA | 867,413 | ||||||||||||||
| 129,246 | Canon | 5,867,485 | ||||||||||||||
| 15,800 | FANUC | 2,554,706 | ||||||||||||||
| 460 | INPEX | 3,036,958 | ||||||||||||||
| 20,534 | Japan Airport Terminal | 271,638 | ||||||||||||||
| 13,319 | Kamigumi | 116,300 | ||||||||||||||
| 6,915 | Keyence | 1,757,868 | ||||||||||||||
| 106,200 | KOMATSU | 2,625,775 | ||||||||||||||
| 170,186 | Mitsubishi | 3,500,209 | ||||||||||||||
| 108,564 | Mitsui Sumitomo Insurance Group | 2,126,373 | ||||||||||||||
| 161,000 | NGK Insulators | 1,856,000 | ||||||||||||||
| 20,675 | Nintendo | 3,119,250 | ||||||||||||||
| 101,198 | NKSJ Holdings | 2,023,940 | ||||||||||||||
| 64,011 | Nomura Research Institute | 1,439,613 | ||||||||||||||
| 2,450 | Rakuten | 2,685,776 | ||||||||||||||
| 49,738 | SECOM | 2,352,266 | ||||||||||||||
| 24,173 | SMC | 3,759,910 | ||||||||||||||
| 42,783 | Sugi Holdings | 1,116,533 | ||||||||||||||
| 141,592 | Sumitomo Metal Mining | 1,949,086 | ||||||||||||||
| 1,042,207 | Sumitomo Mitsui Trust | 3,566,562 | ||||||||||||||
| 195,730 | Suzuki Motor | 4,151,265 | ||||||||||||||
| 39,000 | TERUMO | 1,981,591 | ||||||||||||||
| 773,284 | The Bank of Yokohama | 3,540,416 | ||||||||||||||
| 64,849 | THK | 1,263,842 | ||||||||||||||
| 62,215 | TOKYO GAS | 267,918 | ||||||||||||||
| 44 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Japan (continued) | ||||||||||||||||
| 97,100 | Toyota Motor | $ | 3,223,796 | |||||||||||||
Total Japan | 61,022,489 | |||||||||||||||
Lebanon – 0.1% | ||||||||||||||||
| 61,070 | Equatorial Energia | 399,462 | ||||||||||||||
Luxembourg – 0.7% | ||||||||||||||||
| 21,539 | Millicom International Cellular | 2,375,460 | ||||||||||||||
| 27,255 | Oriflame Cosmetics – SDR | 1,084,359 | ||||||||||||||
| 14,869 | SES | 379,777 | ||||||||||||||
Total Luxembourg | 3,839,596 | |||||||||||||||
Malaysia – 0.3% | ||||||||||||||||
| 61,800 | British American Tobacco | 930,401 | ||||||||||||||
| 318,932 | Sime Darby Berhad | 920,016 | ||||||||||||||
Total Malaysia | 1,850,417 | |||||||||||||||
Mexico – 1.7% | ||||||||||||||||
| 90,400 | America Movil, Series L – ADR | 2,297,968 | ||||||||||||||
| 29,700 | Desarrolladora Homex – ADR — | 444,312 | ||||||||||||||
| 1,645 | Grupo Aeroportuario del Sureste – ADR | 94,752 | ||||||||||||||
| 919,353 | Grupo Mexico, Series B | 2,548,279 | ||||||||||||||
| 70,400 | Grupo Televisa – ADR | 1,501,632 | ||||||||||||||
| 182,700 | Kimberly-Clark de Mexico, Series A | 1,039,829 | ||||||||||||||
| 128,274 | OHL Mexico — | 199,336 | ||||||||||||||
| 71,951 | Wal-Mart de Mexico – ADR | 1,849,141 | ||||||||||||||
Total Mexico | 9,975,249 | |||||||||||||||
Netherlands – 0.8% | ||||||||||||||||
| 88,133 | Heineken | 4,281,652 | ||||||||||||||
| 9,289 | Koninklijke Vopak | 478,774 | ||||||||||||||
Total Netherlands | 4,760,426 | |||||||||||||||
New Zealand – 0.1% | ||||||||||||||||
| 59,830 | Auckland International Airport | 112,966 | ||||||||||||||
| 159,773 | Infratil | 237,876 | ||||||||||||||
| 49,175 | Port of Tauranga | 384,883 | ||||||||||||||
Total New Zealand | 735,725 | |||||||||||||||
Norway – 1.0% | ||||||||||||||||
| 9,437 | Hafslund, Class B | 96,385 | ||||||||||||||
| 373,710 | Norsk Hydro | 1,935,822 | ||||||||||||||
| 201,735 | Telenor ASA | 3,593,452 | ||||||||||||||
Total Norway | 5,625,659 | |||||||||||||||
Philippines – 0.6% | ||||||||||||||||
| 137,138 | International Container Terminal Services | 177,054 | ||||||||||||||
| 890,835 | Metro Pacific Investments | 67,747 | ||||||||||||||
| 59,600 | Philippine Long Distance Telephone – ADR | 3,310,184 | ||||||||||||||
Total Philippines | 3,554,985 | |||||||||||||||
Portugal – 0.2% | ||||||||||||||||
| 9,614 | Brisa Auto-Estradas de Portugal | 32,722 | ||||||||||||||
| Nuveen Investments | 45 |
Portfolio of Investments
Nuveen International Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Portugal (continued) | ||||||||||||||||
| 403,981 | Energias de Portugal | $ | 1,269,113 | |||||||||||||
Totla Portugal | 1,301,835 | |||||||||||||||
Russia – 2.4% | ||||||||||||||||
| 189,961 | Gazprom – ADR | 2,205,447 | ||||||||||||||
| 176,187 | Gazprom OAO – ADR | 2,056,102 | ||||||||||||||
| 21,100 | LUKOIL – ADR | 1,222,137 | ||||||||||||||
| 43,971 | Magnit – GDR | 957,165 | ||||||||||||||
| 162,450 | Mobile TeleSystems – ADR | 2,321,411 | ||||||||||||||
| 825,980 | Sberbank | 2,316,874 | ||||||||||||||
| 408,336 | TNK-BP Holding | 1,116,787 | ||||||||||||||
| 36,824 | Uralkali – GDR, Class S | 1,586,815 | ||||||||||||||
Total Russia | 13,782,738 | |||||||||||||||
Singapore – 1.1% | ||||||||||||||||
| 477,013 | CitySpring Infrastructure Trust | 142,110 | ||||||||||||||
| 379,392 | ComfortDelGro | 420,390 | ||||||||||||||
| 207,870 | DBS Group Holdings | 2,030,426 | ||||||||||||||
| 3,309,836 | Golden Agri-Resources | 1,694,384 | ||||||||||||||
| 27,559 | Hyflux | 31,297 | ||||||||||||||
| 142,794 | Parkway Life – REIT | 203,771 | ||||||||||||||
| 102,027 | SembCorp Industries | 336,374 | ||||||||||||||
| 169,101 | Singapore Airport Terminal Services | 329,477 | ||||||||||||||
| 549,934 | Singapore Post | 447,813 | ||||||||||||||
| 50,129 | Singapore Telecommunications — | 126,742 | ||||||||||||||
| 325,498 | SMRT | 476,635 | ||||||||||||||
Total Singapore | �� | 6,239,419 | ||||||||||||||
South Africa – 3.2% | ||||||||||||||||
| 104,097 | Bidvest Group | 2,058,464 | ||||||||||||||
| 29,021 | Kumba Iron Ore | 1,714,341 | ||||||||||||||
| 32,338 | Massmart Holdings | 643,859 | ||||||||||||||
| 163,940 | MTN Group | 2,849,409 | ||||||||||||||
| 291,390 | Murray & Roberts Holdings | 884,340 | ||||||||||||||
| 79,661 | Nedbank Group | 1,409,374 | ||||||||||||||
| 334,892 | Pretoria Portland Cement | 1,014,188 | ||||||||||||||
| 323,420 | Sanlam | 1,208,785 | ||||||||||||||
| 168,305 | Shoprite Holdings | 2,463,948 | ||||||||||||||
| 94,427 | Standard Bank Group | 1,159,500 | ||||||||||||||
| 55,870 | Tiger Brands | 1,603,198 | ||||||||||||||
| 185,636 | Truworths International | 1,868,082 | ||||||||||||||
Total South Africa | 18,877,488 | |||||||||||||||
South Korea – 4.0% | ||||||||||||||||
| 23,085 | Hite Jinro | 526,595 | ||||||||||||||
| 4,997 | Hyundai Mobis | 1,430,098 | ||||||||||||||
| 39,580 | KB Financial Group | 1,533,403 | ||||||||||||||
| 323,002 | Korea Life Insurance | 1,804,495 | ||||||||||||||
| 47,860 | KT&G | 2,993,931 | ||||||||||||||
| 46 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
South Korea (continued) | ||||||||||||||||
| 10,351 | NHN | $ | 2,159,433 | |||||||||||||
| 3,859 | Samsung Electronics – GDR | 3,322,063 | ||||||||||||||
| 8,236 | Samsung Electronics – GDR | 3,597,026 | ||||||||||||||
| 101,306 | Shinhan Financial Group – ADR | 4,035,741 | ||||||||||||||
| 52,357 | Woongjin Coway | 1,803,642 | ||||||||||||||
Total South Korea | 23,206,427 | |||||||||||||||
Spain – 0.7% | ||||||||||||||||
| 187,439 | Banco Santander — | 1,586,458 | ||||||||||||||
| 61,774 | Distribuidora International de Alimentacion — | 282,500 | ||||||||||||||
| 6,458 | Enagas | 126,987 | ||||||||||||||
| 10,638 | Ferrovial | 135,210 | ||||||||||||||
| 98,535 | Grifols | 1,832,010 | ||||||||||||||
Total Spain | 3,963,165 | |||||||||||||||
Sweden – 0.5% | ||||||||||||||||
| 267,293 | Ericsson | 2,786,136 | ||||||||||||||
Switzerland – 5.8% | ||||||||||||||||
| 100,166 | ABB | 1,885,667 | ||||||||||||||
| 45,807 | Adecco | 2,199,983 | ||||||||||||||
| 37,197 | Compagnie Financiere Richemont | 2,118,913 | ||||||||||||||
| 414 | Flughafen Zuerich | 158,766 | ||||||||||||||
| 111,623 | Foster Wheeler | 2,379,802 | ||||||||||||||
| 35,142 | Holcim | 2,225,406 | ||||||||||||||
| 100,002 | Nestle | 5,783,885 | ||||||||||||||
| 111,110 | Noble | 3,993,293 | ||||||||||||||
| 51,587 | Novartis | 2,906,168 | ||||||||||||||
| 42,139 | Roche Holding | 6,913,721 | ||||||||||||||
| 94,696 | UBS | 1,196,788 | ||||||||||||||
| 133,006 | Xstrata | 2,215,418 | ||||||||||||||
Total Switzerland | 33,977,810 | |||||||||||||||
Taiwan – 1.5% | ||||||||||||||||
| 89,000 | Delta Electronics | 209,261 | ||||||||||||||
| 1,186,497 | Hon Hai Precision Industry | 3,252,637 | ||||||||||||||
| 75,706 | HTC | 1,701,374 | ||||||||||||||
| 122,150 | MediaTek | 1,281,875 | ||||||||||||||
| 975,961 | Taiwan Semiconductor Manufacturing | 2,378,297 | ||||||||||||||
Total Taiwan | 8,823,444 | |||||||||||||||
Thailand – 0.9% | ||||||||||||||||
| 88,000 | Banpu Public | 1,813,110 | ||||||||||||||
| 703,400 | CP ALL | 1,075,115 | ||||||||||||||
| 214,600 | Kasikornbank | 866,671 | ||||||||||||||
| 38,400 | PTT Exploration and Production Public Company | 208,546 | ||||||||||||||
| 98,200 | Siam Cement | 1,176,228 | ||||||||||||||
Total Thailand | 5,139,670 | |||||||||||||||
Turkey – 1.8% | ||||||||||||||||
| 377,681 | Akbank T.A.S. | 1,375,494 | ||||||||||||||
| Nuveen Investments | 47 |
Portfolio of Investments
Nuveen International Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Turkey (continued) | ||||||||||||||||
| 413,264 | Koc Holding | $ | 1,468,979 | |||||||||||||
| 216,000 | Turkcell Iletisim Hizmetleri – ADR | 2,661,120 | ||||||||||||||
| 610,880 | Turkiye Garanti Bankasi | 2,143,315 | ||||||||||||||
| 1,170,650 | Turkiye Is Bankasi, Class C | 2,720,882 | ||||||||||||||
Total Turkey | 10,369,790 | |||||||||||||||
United Kingdom – 9.5% | ||||||||||||||||
| 117,832 | Anglo American | 4,319,772 | ||||||||||||||
| 190,093 | ARM Holdings | 1,783,618 | ||||||||||||||
| 120,170 | BG Group | 2,605,765 | ||||||||||||||
| 48,611 | BP – ADR | 2,147,634 | ||||||||||||||
| 154,106 | British Sky Broadcasting Group | 1,737,617 | ||||||||||||||
| 206,566 | Centrica | 983,376 | ||||||||||||||
| 224,723 | Diageo | 4,650,810 | ||||||||||||||
| 246,405 | GlaxoSmithKline | 5,529,903 | ||||||||||||||
| 47,816 | HSBC Holdings – ADR | 2,087,647 | ||||||||||||||
| 27,954 | National Grid – ADR | 1,399,657 | ||||||||||||||
| 7,847 | Pennon Group | 87,657 | ||||||||||||||
| 233,990 | Prudential | 2,416,906 | ||||||||||||||
| 402,827 | Reed Elsevier | 3,448,527 | ||||||||||||||
| 251,076 | Rolls-Royce Group | 2,826,226 | ||||||||||||||
| 70,514 | Schroders | 1,613,936 | ||||||||||||||
| 20,403 | Scottish & Southern Energy | 440,830 | ||||||||||||||
| 11,382 | Severn Trent | 277,044 | ||||||||||||||
| 139,782 | Standard Chartered | 3,261,715 | ||||||||||||||
| 390,706 | Tesco | 2,519,041 | ||||||||||||||
| 74,009 | United Utilities Group | 721,456 | ||||||||||||||
| 156,481 | Vedanta Resources | 3,193,936 | ||||||||||||||
| 129,493 | Vodafone Group – ADR | 3,605,085 | ||||||||||||||
| 106,307 | Willis Group Holdings | 3,860,007 | ||||||||||||||
Total United Kingdom | 55,518,165 | |||||||||||||||
United States – 2.8% | ||||||||||||||||
| 2,842 | American States Water | 99,299 | ||||||||||||||
| 27,807 | American Tower, Class A — | 1,532,166 | ||||||||||||||
| 2,919 | American Water Works | 89,117 | ||||||||||||||
| 36,590 | Brookfield Infrastructure Partners | 918,043 | ||||||||||||||
| 38,450 | Bunge | 2,375,056 | ||||||||||||||
| 57 | California Water Service Group | 1,058 | ||||||||||||||
| 8,749 | Chesapeake Utilities | 370,870 | ||||||||||||||
| 2,522 | Consolidated Edison | 145,948 | ||||||||||||||
| 20,879 | Crown Castle International — | 863,555 | ||||||||||||||
| 9,895 | Dominion Resources | 510,483 | ||||||||||||||
| 27,280 | El Paso | 682,273 | ||||||||||||||
| 2,493 | Exelon | 110,664 | ||||||||||||||
| 7,102 | ITC Holdings | 516,173 | ||||||||||||||
| 690 | Kinder Morgan | 19,734 | ||||||||||||||
| 48 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
United States (continued) | ||||||||||||||||
| 5,103 | NextEra Energy | $ | 287,809 | |||||||||||||
| 12,117 | NiSource | 267,665 | ||||||||||||||
| 4,328 | Northeast Utilities — | 149,619 | ||||||||||||||
| 2,863 | Northwest Natural Gas | 133,759 | ||||||||||||||
| 10,831 | OGE Energy | 560,396 | ||||||||||||||
| 33,699 | Philip Morris International | 2,354,549 | ||||||||||||||
| 7,416 | PPL | 217,808 | ||||||||||||||
| 39,500 | Questar | 761,165 | ||||||||||||||
| 1,378 | Republic Services | 39,218 | ||||||||||||||
| 8,100 | Schlumberger | 595,107 | ||||||||||||||
| 3,107 | Sempra Energy | 166,939 | ||||||||||||||
| 158 | SJW | 3,678 | ||||||||||||||
| 35,297 | Spectra Energy | 1,010,553 | ||||||||||||||
| 7,640 | Standard Parking — | 134,388 | ||||||||||||||
| 6,936 | UIL Holdings | 236,379 | ||||||||||||||
| 1,966 | Unitil | 52,433 | ||||||||||||||
| 13,558 | Waste Connections | 461,650 | ||||||||||||||
| 16,072 | Wisconsin Energy | 521,215 | ||||||||||||||
| 13,538 | Xcel Energy | 349,957 | ||||||||||||||
Total United States | 16,538,726 | |||||||||||||||
Total Common Stocks (cost $515,130,695) | 503,454,816 | |||||||||||||||
EXCHANGE-TRADED FUNDS – 5.1% | ||||||||||||||||
United States – 5.1% | ||||||||||||||||
| 1,311 | iShares MSCI Indonesia Investable Market Index Fund | 39,107 | ||||||||||||||
| 363,000 | iShares MSCI Malaysia Index Fund | 5,038,440 | ||||||||||||||
| 241,000 | Market Vectors Agribusiness | 12,057,230 | ||||||||||||||
| 120,000 | Market Vectors Gold Miners | 7,059,600 | ||||||||||||||
| 181,000 | Market Vectors Russia | 5,513,260 | ||||||||||||||
Total Exchange-Traded Funds (cost $31,546,782) | 29,707,637 | |||||||||||||||
RIGHTS – 0.0% | ||||||||||||||||
Spain – 0.0% | ||||||||||||||||
| 187,439 | Banco Santander — | 32,420 | ||||||||||||||
Total Rights (cost $–) | 32,420 | |||||||||||||||
Shares/ Principal Amount (000) | Description p | Value | ||||||||||||||
SHORT-TERM INVESTMENTS – 8.5% | ||||||||||||||||
Money Market Funds – 3.6% | ||||||||||||||||
| 21,253,411 | State Street Institutional Liquid Reserves Fund, 0.150% W | $ | 21,253,411 | |||||||||||||
| Nuveen Investments | 49 |
Portfolio of Investments
Nuveen International Select Fund (continued)
October 31, 2011
Shares/ Principal Amount (000) | Description p | Value | ||||||||||||||
U.S. Treasury Obligations – 4.9% | ||||||||||||||||
U.S. Treasury Bills ¨ | ||||||||||||||||
| $ | 24,750 | 0.022%, 03/01/2012 | $ | 24,748,169 | ||||||||||||
| 4,025 | 0.025%, 03/08/2012 | 4,024,642 | ||||||||||||||
| 28,775 | Total U.S. Treasury Obligations | 28,772,811 | ||||||||||||||
Total Short-Term Investments (cost $50,026,407) | 50,026,222 | |||||||||||||||
Total Investments (cost $596,703,884) – 99.9% | 583,221,095 | |||||||||||||||
Other Assets Less Liabilities – 0.1% ¯ | 493,594 | |||||||||||||||
Net Assets – 100.0% | $ | 583,714,689 | ||||||||||||||
Investments in Derivatives at October 31, 2011
Futures Contracts outstanding:
| Description | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Australian Dollar Currency | Short | (135 | ) | 12/11 | $ | (14,216,850 | ) | $ | (536,510 | ) | ||||||||||
British Pound Currency | Short | (9 | ) | 12/11 | (907,088 | ) | (44,416 | ) | ||||||||||||
Dollar Index | Long | 240 | 12/11 | 18,313,442 | (257,398 | ) | ||||||||||||||
E-Mini MSCI EAFE | Long | 103 | 12/11 | 7,626,635 | 489,954 | |||||||||||||||
E-Mini MSCI Emerging Market Index | Long | 384 | 12/11 | 18,750,720 | 452,302 | |||||||||||||||
Euro FX Currency | Short | (24 | ) | 12/11 | (4,176,000 | ) | (143,296 | ) | ||||||||||||
FTSE 100 Index | Long | 356 | 12/11 | 31,703,021 | 2,293,060 | |||||||||||||||
FTSE JSE Top 40 | Short | (441 | ) | 12/11 | (16,197,879 | ) | (1,020,104 | ) | ||||||||||||
H-Shares Index | Long | 57 | 11/11 | 3,839,473 | 275,946 | |||||||||||||||
Mexican Bolsa Index | Short | (65 | ) | 12/11 | (1,764,808 | ) | (120,874 | ) | ||||||||||||
Nasdaq 100 E-Mini | Short | (446 | ) | 12/11 | (21,015,520 | ) | (1,280,074 | ) | ||||||||||||
Nikkei 225 Index | Long | 479 | 12/11 | 21,291,550 | 464,869 | |||||||||||||||
OMXS 30 Index | Long | 730 | 11/11 | 11,194,495 | 445,228 | |||||||||||||||
Russell 2000 Mini Index | Short | (414 | ) | 12/11 | (30,607,020 | ) | (1,949,319 | ) | ||||||||||||
S&P 500 Index | Short | (73 | ) | 12/11 | (22,799,725 | ) | (1,266,842 | ) | ||||||||||||
S&P TSX 60 | Long | 171 | 12/11 | 23,904,831 | (278,901 | ) | ||||||||||||||
SGX S&P CNX Nifty | Short | (446 | ) | 11/11 | (4,769,524 | ) | (209,620 | ) | ||||||||||||
SPI 200 | Long | 307 | 12/11 | 34,651,793 | 1,503,163 | |||||||||||||||
STOXX Euro Small 20 Index | Short | (391 | ) | 12/11 | (4,198,367 | ) | (284,304 | ) | ||||||||||||
| $ | (1,467,136 | ) | ||||||||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
 | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivatives instruments as listed within Investments in Derivatives at October 31, 2011. |
| ADR | American Depositary Receipt |
| BDR | Brazilian Depositary Receipt |
| GDR | Global Depositary Receipt |
| REIT | Real Estate Investment Trust |
| SDR | Swedish Depositary Receipt |
See accompanying notes to financial statements.
| 50 | Nuveen Investments |
Portfolio of Investments
Nuveen Quantitative Enhanced Core Equity Fund
(formerly known as Nuveen Quantitative Large Cap Core Fund and First American Quantitative Large Cap Core Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 98.0% | ||||||||||||||||
Consumer Discretionary – 7.6% | ||||||||||||||||
| 2,160 | Amazon.com — q | $ | 461,182 | |||||||||||||
| 2,627 | Autoliv q | 151,762 | ||||||||||||||
| 2,329 | Bed Bath & Beyond — q | 144,025 | ||||||||||||||
| 11,281 | Carnival q | 397,204 | ||||||||||||||
| 5,919 | Coach | 385,149 | ||||||||||||||
| 14,954 | Comcast, Class A q | 350,671 | ||||||||||||||
| 996 | Foot Locker q | 21,772 | ||||||||||||||
| 9,373 | Gap q | 177,150 | ||||||||||||||
| 3,950 | Guess? | 130,310 | ||||||||||||||
| 8,762 | Home Depot q | 313,680 | ||||||||||||||
| 1,190 | J Crew Group Escrow Shares — n | — | ||||||||||||||
| 8,790 | Johnson Controls q | 289,455 | ||||||||||||||
| 285 | Kohl’s | 15,108 | ||||||||||||||
| 26,234 | Lowe’s q | 551,439 | ||||||||||||||
| 4,794 | Mattel q | 135,382 | ||||||||||||||
| 2,878 | McGraw-Hill | 122,315 | ||||||||||||||
| 17,037 | Newell Rubbermaid | 252,148 | ||||||||||||||
| 60,454 | News, Class A | 1,059,154 | ||||||||||||||
| 4,900 | Nike, Class B q | 472,115 | ||||||||||||||
| 1,640 | Nordstrom q | 83,132 | ||||||||||||||
| 2,782 | Omnicom Group q | 123,743 | ||||||||||||||
| 14,840 | Signet Jewelers | 639,752 | ||||||||||||||
| 4,260 | Stanley Black & Decker | 272,001 | ||||||||||||||
| 7,398 | Staples q | 110,674 | ||||||||||||||
| 2,907 | Target | 159,158 | ||||||||||||||
| 2,492 | TJX | 146,854 | ||||||||||||||
| 321 | TRW Automotive Holdings — | 13,514 | ||||||||||||||
| 1,427 | Tupperware | 80,683 | ||||||||||||||
| 10,930 | Viacom, Class B | 479,280 | ||||||||||||||
| 20,911 | Walt Disney q | 729,376 | ||||||||||||||
Total Consumer Discretionary | 8,268,188 | |||||||||||||||
Consumer Staples – 8.1% | ||||||||||||||||
| 9,656 | Altria Group q | 266,023 | ||||||||||||||
| 20,064 | Archer-Daniels-Midland q | 580,652 | ||||||||||||||
| 4,850 | Avon Products | 88,658 | ||||||||||||||
| 17,617 | Coca-Cola | 1,203,593 | ||||||||||||||
| 28,700 | Coca-Cola Enterprises | 769,734 | ||||||||||||||
| 1,469 | Colgate-Palmolive | 132,754 | ||||||||||||||
| 7,659 | ConAgra Foods | 194,002 | ||||||||||||||
| 6,552 | Corn Products International | 317,772 | ||||||||||||||
| 7,819 | CVS Caremark | 283,830 | ||||||||||||||
| 303 | General Mills | 11,675 | ||||||||||||||
| 303 | Hansen Natural — | 26,994 | ||||||||||||||
| 479 | JM Smucker | 36,893 | ||||||||||||||
| Nuveen Investments | 51 |
Portfolio of Investments
Nuveen Quantitative Enhanced Core Equity Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Consumer Staples (continued) | ||||||||||||||||
| 4,326 | Molson Coors Brewing, Class B | $ | 183,163 | |||||||||||||
| 12,737 | PepsiCo | 801,794 | ||||||||||||||
| 12,774 | Philip Morris International | 892,519 | ||||||||||||||
| 23,384 | Procter & Gamble | 1,496,342 | ||||||||||||||
| 8,879 | Reynolds American q | 343,440 | ||||||||||||||
| 9,120 | Sysco | 252,806 | ||||||||||||||
| 9,655 | Walgreens | 320,546 | ||||||||||||||
| 9,062 | Wal-Mart Stores q | 513,997 | ||||||||||||||
Total Consumer Staples | 8,717,187 | |||||||||||||||
Energy – 15.0% | ||||||||||||||||
| 16,409 | Baker Hughes | 951,558 | ||||||||||||||
| 5,056 | Cameron International — q | 248,452 | ||||||||||||||
| 27,298 | Chevron q | 2,867,655 | ||||||||||||||
| 9,075 | ConocoPhillips | 632,074 | ||||||||||||||
| 55,616 | Exxon Mobil q | 4,343,053 | ||||||||||||||
| 22,653 | Halliburton | 846,316 | ||||||||||||||
| 8,086 | Helmerich & Payne q | 430,014 | ||||||||||||||
| 2,306 | HollyFrontier | 70,771 | ||||||||||||||
| 5,169 | Marathon Oil | 134,549 | ||||||||||||||
| 15,381 | Marathon Petroleum q | 552,178 | ||||||||||||||
| 17,876 | Nabors Industries — q | 327,667 | ||||||||||||||
| 12,330 | National Oilwell Varco q | 879,499 | ||||||||||||||
| 11,030 | Noble Energy q | 396,418 | ||||||||||||||
| 3,404 | Occidental Petroleum | 316,368 | ||||||||||||||
| 7,172 | Oceaneering International q | 300,005 | ||||||||||||||
| 4,292 | Oil States International — q | 298,766 | ||||||||||||||
| 12,094 | Patterson-UTI Energy | 245,750 | ||||||||||||||
| 3,376 | Rowan — q | 116,438 | ||||||||||||||
| 9,986 | RPC q | 185,440 | ||||||||||||||
| 20,017 | Schlumberger | 1,470,649 | ||||||||||||||
| 2,294 | Superior Energy Services — q | 64,507 | ||||||||||||||
| 19,820 | Valero Energy q | 487,572 | ||||||||||||||
Total Energy | 16,165,699 | |||||||||||||||
Financials – 18.9% | ||||||||||||||||
| 16,532 | ACE q | 1,192,784 | ||||||||||||||
| 11,365 | Aflac q | 512,448 | ||||||||||||||
| 16,998 | American Capital — q | 132,074 | ||||||||||||||
| 41,807 | American Capital Agency – REIT | 1,150,111 | ||||||||||||||
| 14,602 | Ameriprise Financial | 681,621 | ||||||||||||||
| 43,074 | Annaly Capital Management – REIT q | 725,797 | ||||||||||||||
| 5,114 | AON | 238,415 | ||||||||||||||
| 34,031 | Ares Capital | 526,460 | ||||||||||||||
| 2,680 | Arthur J. Gallagher | 82,812 | ||||||||||||||
| 8,053 | Assurant | 310,363 | ||||||||||||||
| 11,164 | Assured Guaranty | 142,229 | ||||||||||||||
| 52 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Financials (continued) | ||||||||||||||||
| 32,057 | Bank of America | $ | 218,949 | |||||||||||||
| 22,654 | Bank of New York Mellon | 482,077 | ||||||||||||||
| 19,642 | Berkshire Hathaway, Class B — q | 1,529,326 | ||||||||||||||
| 2,315 | BlackRock | 365,284 | ||||||||||||||
| 11,105 | BOK Financial q | 579,903 | ||||||||||||||
| 556 | Brown & Brown | 12,276 | ||||||||||||||
| 1,138 | �� | Capital One Financial q | 51,961 | |||||||||||||
| 14,877 | Charles Schwab q | 182,690 | ||||||||||||||
| 10,698 | Chubb q | 717,301 | ||||||||||||||
| 4,510 | Citigroup | 142,471 | ||||||||||||||
| 566 | CME Group q | 155,967 | ||||||||||||||
| 10,265 | Discover Financial Services | 241,843 | ||||||||||||||
| 5,990 | East West Bancorp | 116,625 | ||||||||||||||
| 39,375 | First Niagara Financial Group q | 361,856 | ||||||||||||||
| 5,727 | Franklin Resources | 610,670 | ||||||||||||||
| 4,886 | Fulton Financial q | 46,124 | ||||||||||||||
| 2,300 | Hartford Financial Services Group q | 44,275 | ||||||||||||||
| 19,529 | HCC Insurance Holdings q | 519,667 | ||||||||||||||
| 32,042 | Huntington Bancshares q | 165,978 | ||||||||||||||
| 5,430 | Invesco | 108,980 | ||||||||||||||
| 33,488 | JPMorgan Chase | 1,164,043 | ||||||||||||||
| 511 | Kemper | 13,741 | ||||||||||||||
| 10,278 | Lincoln National q | 195,796 | ||||||||||||||
| 6,982 | Loew’s | 277,185 | ||||||||||||||
| 4,303 | M&T Bank | 327,501 | ||||||||||||||
| 2,961 | Marsh & McLennan | 90,666 | ||||||||||||||
| 2,737 | MetLife | 96,233 | ||||||||||||||
| 2,018 | NASDAQ OMX Group — | 50,551 | ||||||||||||||
| 2,644 | Northern Trust | 107,003 | ||||||||||||||
| 4,916 | NYSE Euronext | 130,618 | ||||||||||||||
| 6,908 | PNC Financial Services Group | 371,029 | ||||||||||||||
| 20,771 | Principal Financial Group | 535,476 | ||||||||||||||
| 27,485 | Progressive | 522,490 | ||||||||||||||
| 16,799 | Protective Life | 312,461 | ||||||||||||||
| 12,350 | Prudential Financial | 669,370 | ||||||||||||||
| 5,516 | Raymond James Financial | 167,521 | ||||||||||||||
| 1,654 | Reinsurance Group of America | 86,388 | ||||||||||||||
| 7,738 | State Street q | 312,538 | ||||||||||||||
| 6,037 | T. Rowe Price Group q | 318,995 | ||||||||||||||
| 8,534 | Travelers | 497,959 | ||||||||||||||
| 5,110 | Validus Holdings | 139,810 | ||||||||||||||
| 62,963 | Wells Fargo | 1,631,371 | ||||||||||||||
Total Financials | 20,368,082 | |||||||||||||||
Health Care – 12.0% | ||||||||||||||||
| 17,869 | Abbott Laboratories | 962,603 | ||||||||||||||
| Nuveen Investments | 53 |
Portfolio of Investments
Nuveen Quantitative Enhanced Core Equity Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||
| 14,108 | Aetna | $ | 560,934 | |||||||||||||
| 1,049 | AmerisourceBergen q | 42,799 | ||||||||||||||
| 10,155 | Amgen | 581,577 | ||||||||||||||
| 908 | Baxter International | 49,922 | ||||||||||||||
| 141 | Becton, Dickinson & Company | 11,030 | ||||||||||||||
| 18,137 | Bristol-Myers Squibb | 572,948 | ||||||||||||||
| 5,954 | Cardinal Health | 263,584 | ||||||||||||||
| 6,937 | CIGNA | 307,587 | ||||||||||||||
| 5,740 | Coventry Health Care — | 182,589 | ||||||||||||||
| 6,855 | Covidien q | 322,459 | ||||||||||||||
| 15,795 | Eli Lilly | 586,942 | ||||||||||||||
| 3,970 | Gilead Sciences — | 165,390 | ||||||||||||||
| 2,005 | Humana | 170,204 | ||||||||||||||
| 34,500 | Johnson & Johnson q | 2,221,455 | ||||||||||||||
| 794 | McKesson | 64,751 | ||||||||||||||
| 18,049 | Medtronic | 627,022 | ||||||||||||||
| 38,850 | Merck | 1,340,325 | ||||||||||||||
| 607 | PerkinElmer q | 12,547 | ||||||||||||||
| 114,788 | Pfizer | 2,210,817 | ||||||||||||||
| 3,557 | St. Jude Medical | 138,723 | ||||||||||||||
| 4,747 | Stryker q | 227,429 | ||||||||||||||
| 2,699 | Thermo Fisher Scientific — | 135,679 | ||||||||||||||
| 12,864 | UnitedHealth Group | 617,343 | ||||||||||||||
| 5,931 | WellPoint | 408,646 | ||||||||||||||
| 3,179 | Zimmer Holdings — q | 167,311 | ||||||||||||||
Total Heath Care | 12,952,616 | |||||||||||||||
Industrials – 8.2% | ||||||||||||||||
| 11,890 | 3M q | 939,548 | ||||||||||||||
| 1,524 | Carlisle Companies | 63,581 | ||||||||||||||
| 650 | Caterpillar | 61,399 | ||||||||||||||
| 1,644 | Crane | 72,517 | ||||||||||||||
| 18,919 | CSX | 420,191 | ||||||||||||||
| 3,845 | Cummins | 382,308 | ||||||||||||||
| 5,299 | Danaher q | 256,207 | ||||||||||||||
| 3,345 | Dover q | 185,748 | ||||||||||||||
| 13,405 | Eaton q | 600,812 | ||||||||||||||
| 7,137 | Emerson Electric q | 343,432 | ||||||||||||||
| 3,272 | Equifax | 115,011 | ||||||||||||||
| 1,229 | Fluor | 69,869 | ||||||||||||||
| 12,182 | General Dynamics | 781,963 | ||||||||||||||
| 55,979 | General Electric | 935,409 | ||||||||||||||
| 11,013 | Honeywell International | 577,081 | ||||||||||||||
| 1,412 | Hubbell, Class B | 84,423 | ||||||||||||||
| 3,526 | Illinois Tool Works q | 171,469 | ||||||||||||||
| 1,093 | KBR | 30,506 | ||||||||||||||
| 54 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Industrials (continued) | ||||||||||||||||
| 6,582 | Norfolk Southern q | $ | 487,002 | |||||||||||||
| 3,837 | Paccar q | 165,912 | ||||||||||||||
| 5,065 | Parker Hannifin | 413,051 | ||||||||||||||
| 8,942 | Raytheon | 395,147 | ||||||||||||||
| 2,260 | Rockwell Automation q | 152,889 | ||||||||||||||
| 1,160 | Rockwell Collins q | 64,763 | ||||||||||||||
| 7,150 | Timken | 301,158 | ||||||||||||||
| 1,909 | Towers Watson, Class A q | 125,421 | ||||||||||||||
| 5,286 | Union Pacific | 526,327 | ||||||||||||||
| 2,166 | United Technologies q | 168,905 | ||||||||||||||
Total Industrials | 8,892,049 | |||||||||||||||
Information Technology – 17.5% | ||||||||||||||||
| 6,866 | Accenture, Class A q | 413,745 | ||||||||||||||
| 322 | Agilent Technologies — | 11,936 | ||||||||||||||
| 6,128 | Akamai Technologies — | 165,088 | ||||||||||||||
| 5,573 | Analog Devices q | 203,805 | ||||||||||||||
| 6,120 | Apple — | 2,477,254 | ||||||||||||||
| 11,443 | Applied Materials | 140,978 | ||||||||||||||
| 831 | Autodesk — | 28,753 | ||||||||||||||
| 19,982 | Automatic Data Processing q | 1,045,658 | ||||||||||||||
| 23,364 | AVX | 313,311 | ||||||||||||||
| 19,139 | Booz Allen Hamilton Holding — q | 302,588 | ||||||||||||||
| 838 | Broadcom, Class A | 30,243 | ||||||||||||||
| 51,274 | Cisco Systems | 950,107 | ||||||||||||||
| 2,795 | Cognizant Technology Solutions, Class A — | 203,336 | ||||||||||||||
| 16,227 | Computer Sciences q | 510,501 | ||||||||||||||
| 40,576 | Corning | 579,831 | ||||||||||||||
| 21,861 | eBay — | 695,836 | ||||||||||||||
| 3,079 | Google, Class A — | 1,824,738 | ||||||||||||||
| 35,688 | Hewlett-Packard | 949,658 | ||||||||||||||
| 5,782 | IBM q | 1,067,531 | ||||||||||||||
| 51,509 | Intel q | 1,264,031 | ||||||||||||||
| 685 | MasterCard, Class A | 237,859 | ||||||||||||||
| 108,373 | Microsoft | 2,885,973 | ||||||||||||||
| 30,452 | Oracle | 997,912 | ||||||||||||||
| 12,906 | QUALCOMM | 665,950 | ||||||||||||||
| 10,248 | Texas Instruments q | 314,921 | ||||||||||||||
| 4,111 | Visa, Class A q | 383,392 | ||||||||||||||
| 350 | Western Digital — | 9,324 | ||||||||||||||
| 615 | Western Union | 10,744 | ||||||||||||||
| 13,444 | Yahoo! — | 210,264 | ||||||||||||||
Total Information Technology | 18,895,267 | |||||||||||||||
Materials – 1.8% | ||||||||||||||||
| 607 | Albemarle | 32,347 | ||||||||||||||
| 1,168 | Ashland | 61,857 | ||||||||||||||
| Nuveen Investments | 55 |
Portfolio of Investments
Nuveen Quantitative Enhanced Core Equity Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Materials (continued) | ||||||||||||||||
| 2,990 | Cabot Microelectronics | $ | 90,238 | |||||||||||||
| 4,394 | Cliffs Natural Resources q | 299,759 | ||||||||||||||
| 12,958 | Dow Chemical | 361,269 | ||||||||||||||
| 11,763 | E.I. Du Pont de Nemours q | 565,447 | ||||||||||||||
| 1,406 | Eastman Chemical | 55,242 | ||||||||||||||
| 197 | Monsanto | 14,332 | ||||||||||||||
| 1,840 | Mosaic | 107,750 | ||||||||||||||
| 4,859 | Sealed Air q | 86,490 | ||||||||||||||
| 4,679 | Southern Copper | 143,552 | ||||||||||||||
| 4,657 | Temple-Inland | 148,139 | ||||||||||||||
Total Materials | 1,966,422 | |||||||||||||||
Telecommunication Services – 3.3% | ||||||||||||||||
| 84,364 | AT&T q | 2,472,709 | ||||||||||||||
| 29,006 | Verizon Communications q | 1,072,642 | ||||||||||||||
Total Telecommunication Services | 3,545,351 | |||||||||||||||
Utilities – 5.6% | ||||||||||||||||
| 4,868 | Alliant Energy | 198,517 | ||||||||||||||
| 2,384 | American Electric Power | 93,643 | ||||||||||||||
| 1,863 | DTE Energy | 97,081 | ||||||||||||||
| 25,380 | Duke Energy q | 518,260 | ||||||||||||||
| 5,868 | NextEra Energy | 330,955 | ||||||||||||||
| 16,407 | NSTAR | 739,792 | ||||||||||||||
| 13,489 | OGE Energy | 697,921 | ||||||||||||||
| 12,752 | PG&E | 547,061 | ||||||||||||||
| 12,564 | Pinnacle West Capital | 572,667 | ||||||||||||||
| 32,704 | Public Service Enterprise Group q | 1,102,125 | ||||||||||||||
| 1,493 | SCANA | 63,124 | ||||||||||||||
| 3,204 | Sempra Energy | 172,151 | ||||||||||||||
| 6,192 | Southern | 267,494 | ||||||||||||||
| 3,305 | Vectren | 93,796 | ||||||||||||||
| 3,065 | Wisconsin Energy | 99,398 | ||||||||||||||
| 16,573 | Xcel Energy | 428,412 | ||||||||||||||
Total Utilities | 6,022,397 | |||||||||||||||
Total Common Stocks (cost $101,760,652) | 105,793,258 | |||||||||||||||
| Shares | Description p | Value | ||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 39.8% | ||||||||||||||||
Money Market Funds – 39.8% | ||||||||||||||||
| 42,978,792 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 42,978,792 | |||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $42,978,792) | 42,978,792 | |||||||||||||||
| 56 | Nuveen Investments |
Shares/ Principal Amount (000) | Description p | Value | ||||||||||||||
SHORT-TERM INVESTMENTS – 2.3% | ||||||||||||||||
Money Market Funds – 1.6% | ||||||||||||||||
| 1,766,122 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 1,766,122 | |||||||||||||
U.S. Treasury Obligations – 0.7% | ||||||||||||||||
U.S. Treasury Bills ¨ | ||||||||||||||||
| $ | 750 | 0.022%, 03/01/2012 | 749,944 | |||||||||||||
Total Short-Term Investments (cost $2,516,084) | 2,516,066 | |||||||||||||||
Total Investments (cost $147,255,528) – 140.1% | 151,288,116 | |||||||||||||||
Other Assets Less Liabilities – (40.1)% ¯ | (43,282,059) | |||||||||||||||
Net Assets – 100.0% | $ | 108,006,057 | ||||||||||||||
Investments in Derivatives at October 31, 2011
Futures Contracts outstanding:
| Description | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation | |||||||||||||||
S&P 500 Index | Long | 7 | 12/11 | $ | 2,186,275 | $ | 71,822 | |||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| n | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivatives instruments as listed within Investments in Derivatives at October 31, 2011. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 57 |
Portfolio of Investments
Nuveen Tactical Market Opportunities Fund
(formerly known as First American Tactical Opportunities Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
EXCHANGE TRADED FUNDS – 25.2% | ||||||||||||||
| 49,000 | iShares Barclays 1-3 Year Credit Bond Fund | $ | 5,130,790 | |||||||||||
| 34,500 | iShares iBoxx High Yield Corporate Bond Fund | 3,080,160 | ||||||||||||
| 16,000 | iShares S&P U.S. Preferred Stock Index Fund | 596,960 | ||||||||||||
| 64,000 | Market Vectors Emerging Markets Local Currency Bond | 1,656,960 | ||||||||||||
| 48,000 | Market Vectors High Yield Municipal Index | 1,431,840 | ||||||||||||
| 31,000 | Market Vectors Russia | 944,260 | ||||||||||||
| 18,000 | PowerShares ETF Trust II Senior Loan Portfolio | 432,000 | ||||||||||||
| 1,200 | SPDR S&P Global Natural Resources | 63,036 | ||||||||||||
Total Exchange-Traded Funds (cost $13,386,978) | 13,336,006 | |||||||||||||
Principal Amount (000) | Description p | Value | ||||||||||||
CORPORATE BONDS – 9.8% | ||||||||||||||
Sovereign – 9.8% | ||||||||||||||
| $ | 4,900 | Australian Government, 5.750%, 04/15/2012 | $ | 5,198,123 | ||||||||||
Total Corporate Bonds (cost $5,005,166) | 5,198,123 | |||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 9.2% | ||||||||||||||
| 3,900 | U.S. Treasury Bond, 4.500%, 08/15/2039 | 4,864,033 | ||||||||||||
Total U.S. Government and Agency Obligations (cost $4,139,381) | 4,864,033 | |||||||||||||
Shares/ Principal Amount (000) | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 54.6% | ||||||||||||||
Money Market Funds – 50.4% | ||||||||||||||
| 26,652,164 | First American Treasury Obligations Fund, 0.000% W | $ | 26,652,164 | |||||||||||
U.S. Treasury Obligations – 4.2% | ||||||||||||||
U.S. Treasury Bills ¨ | ||||||||||||||
| $ | 2,000 | 0.022%, 03/01/2012 | $ | 1,999,852 | ||||||||||
| 200 | 0.025%, 03/08/2012 | 199,982 | ||||||||||||
| $ | 2,200 | Total U.S. Treasury Obligations | 2,199,834 | |||||||||||
Total Short-Term Investments (cost $28,852,023) | 28,851,998 | |||||||||||||
Total Investments (cost $51,383,548) – 98.8% | 52,250,160 | |||||||||||||
Other Assets Less Liabilities – 1.2% ¯ | 642,649 | |||||||||||||
Net Assets – 100.0% | $ | 52,892,809 | ||||||||||||
| 58 | Nuveen Investments |
Investments in Derivatives at October 31, 2011
Futures Contracts outstanding:
| Description | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Australian Dollar Currency | Short | (50 | ) | 12/11 | $ | (5,265,500 | ) | $ | (284,548 | ) | ||||||||||
Dollar Index | Long | 29 | 12/11 | 2,212,874 | (43,517 | ) | ||||||||||||||
H-Shares Index | Long | 17 | 11/11 | 1,145,106 | 82,300 | |||||||||||||||
Mini MSCI Emerging Markets Index | Long | 26 | 12/11 | 1,269,580 | 8,428 | |||||||||||||||
MSCI Taiwan Stock Index | Long | 49 | 11/11 | 1,310,260 | 4,350 | |||||||||||||||
Nasdaq 100 E-Mini Index | Short | (28 | ) | 12/11 | (1,319,360 | ) | (41,557 | ) | ||||||||||||
Nikkei 225 Index | Long | 7 | 12/11 | 311,150 | 6,794 | |||||||||||||||
Russell 2000 Mini Index | Short | (79 | ) | 12/11 | (5,840,470 | ) | (364,791 | ) | ||||||||||||
S&P 500 E-Mini Index | Long | 112 | 12/11 | 6,996,080 | 388,119 | |||||||||||||||
SGX S&P CNX Nifty Index | Short | (104 | ) | 11/11 | (1,112,176 | ) | (48,880 | ) | ||||||||||||
Swiss Market Index | Long | 10 | 12/11 | 653,224 | 41,541 | |||||||||||||||
U.S. Treasury 2-Year Note | Short | (79 | ) | 12/11 | (17,402,220 | ) | 15,853 | |||||||||||||
| $ | (235,908 | ) | ||||||||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivatives instruments as listed within Investments in Derivatives at October 31, 2011. |
See accompanying notes to financial statements.
| Nuveen Investments | 59 |
Statement of Assets & Liabilities (all dollars and shares are rounded to thousands (000), except for per share data)
October 31, 2011
| International | International Select | Quantitative Enhanced | Tactical Market | |||||||||||||
Assets | ||||||||||||||||
Investments, at value (cost $160,102, $546,678, $101,761 and $22,532, respectively) | $ | 152,930 | $ | 533,195 | $ | 105,793 | $ | 23,398 | ||||||||
Investment purchased with collateral from securities lending (at cost, which approximates value) | — | — | 42,979 | — | ||||||||||||
Short-term investments (cost $12,982, $50,026, $2,516 and $28,852, respectively) | 12,982 | 50,026 | 2,516 | 28,852 | ||||||||||||
Cash denominated in foreign currencies (cost $5,158, $6,460, $– and $343, respectively) | 5,142 | 6,490 | — | 347 | ||||||||||||
Receivables: | ||||||||||||||||
Deposits with brokers for open futures contracts | 1,032 | 4,025 | — | 200 | ||||||||||||
Dividends | 838 | 977 | 119 | — | ||||||||||||
Due from broker | — | — | 3 | — | ||||||||||||
From Adviser | — | — | — | 3 | ||||||||||||
Interest | 1 | 3 | — | 51 | ||||||||||||
Investments sold | 2,826 | 7,186 | — | 361 | ||||||||||||
Reclaims | 764 | 528 | — | — | ||||||||||||
Shares sold | 13 | 354 | — | 1,140 | ||||||||||||
Other assets | 46 | 36 | 44 | 27 | ||||||||||||
Total assets | 176,574 | 602,820 | 151,454 | 54,379 | ||||||||||||
Liabilities | ||||||||||||||||
Cash overdraft | 6,206 | 9,583 | — | 328 | ||||||||||||
Payables: | ||||||||||||||||
Collateral from securities lending program | — | — | 42,979 | — | ||||||||||||
Investments purchased | 2,398 | 5,983 | — | 1,079 | ||||||||||||
Shares redeemed | 108 | 1,079 | 212 | — | ||||||||||||
Variation margin on futures contracts | 358 | 1,325 | 55 | 28 | ||||||||||||
Accrued expenses: | ||||||||||||||||
Management fees | 635 | 726 | 106 | — | ||||||||||||
12b-1 distribution and service fees | 7 | 1 | — | 1 | ||||||||||||
Other | 324 | 408 | 96 | 50 | ||||||||||||
Total liabilities | 10,036 | 19,105 | 43,448 | 1,486 | ||||||||||||
Net assets | $ | 166,538 | $ | 583,715 | $ | 108,006 | $ | 52,893 | ||||||||
Class A Shares | ||||||||||||||||
Net assets | $ | 22,328 | $ | 4,388 | $ | 164 | $ | 3,558 | ||||||||
Shares outstanding | 2,008 | 496 | 8 | 317 | ||||||||||||
Net asset value per share | $ | 11.12 | $ | 8.85 | $ | 21.57 | $ | 11.22 | ||||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 11.80 | $ | 9.39 | $ | 21.57 | (2) | $ | 11.90 | |||||||
Class B Shares | ||||||||||||||||
Net assets | $ | 948 | N/A | N/A | N/A | |||||||||||
Shares outstanding | 94 | N/A | N/A | N/A | ||||||||||||
Net asset value and offering price per share | $ | 10.08 | N/A | N/A | N/A | |||||||||||
Class C Shares | ||||||||||||||||
Net assets | $ | 1,987 | $ | 717 | $ | 108 | $ | 475 | ||||||||
Shares outstanding | 189 | 82 | 5 | 42 | ||||||||||||
Net asset value and offering price per share | $ | 10.51 | $ | 8.72 | $ | 21.40 | $ | 11.17 | ||||||||
Class R3 Shares(1) | ||||||||||||||||
Net assets | $ | 11 | $ | 13 | N/A | N/A | ||||||||||
Shares outstanding | 1 | 2 | N/A | N/A | ||||||||||||
Net asset value and offering price per share | $ | 11.11 | $ | 8.67 | N/A | N/A | ||||||||||
Class I Shares(1) | ||||||||||||||||
Net assets | $ | 141,264 | $ | 578,597 | $ | 107,734 | $ | 48,860 | ||||||||
Shares outstanding | 12,557 | 65,237 | 4,978 | 4,342 | ||||||||||||
Net asset value and offering price per share | $ | 11.25 | $ | 8.87 | $ | 21.64 | $ | 11.25 | ||||||||
Net assets consist of: | ||||||||||||||||
Capital paid-in | $ | 148,757 | $ | 588,664 | $ | 101,412 | $ | 50,741 | ||||||||
Undistributed (Over-distribution of) net investment income | 6,115 | 7,930 | 1,945 | 293 | ||||||||||||
Accumulated net realized gain (loss) | 17,385 | 2,053 | 545 | 1,224 | ||||||||||||
Net unrealized appreciation (depreciation) | (5,719 | ) | (14,932 | ) | 4,104 | 635 | ||||||||||
Net assets | $ | 166,538 | $ | 583,715 | $ | 108,006 | $ | 52,893 | ||||||||
Authorized shares | 2 billion | 2 billion | 2 billion | 2 billion | ||||||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | ||||||||
| N/A – | International Select does not offer Class B Shares. Quantitative Enhanced Core Equity and Tactical Market Opportunities do not offer Class B Shares or Class R3 Shares. |
| (1) – | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| (2) – | Quantitative Enhanced Core Equity does not have a maximum sales charge. |
See accompanying notes to financial statements.
| 60 | Nuveen Investments |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Investment Income | ||||||||||||||||
Dividend and interest income from unaffiliated investments (net of foreign tax withheld of $1,730, $1,856, $1 and $–, respectively) | $ | 15,329 | $ | 18,570 | $ | 3,668 | $ | 684 | ||||||||
Interest income from affiliated investments(1) | — | — | — | 1 | ||||||||||||
Securities lending income | — | — | 34 | — | ||||||||||||
Total investment income | 15,329 | 18,570 | 3,702 | 685 | ||||||||||||
Expenses | ||||||||||||||||
Management fees | 6,607 | 7,776 | 795 | 246 | ||||||||||||
12b-1 service fees – Class A(2) | 65 | 13 | — | 1 | ||||||||||||
12b-1 distribution and service fees – Class B | 13 | N/A | �� | N/A | N/A | |||||||||||
12b-1 distribution and service fees – Class C(2) | 24 | 8 | 1 | 1 | ||||||||||||
Administration fees(1) | 267 | 331 | 78 | 10 | ||||||||||||
Shareholders’ servicing agent fees and expenses | 172 | 47 | 22 | 12 | ||||||||||||
Custodian’s fees and expenses | 524 | 851 | 55 | 10 | ||||||||||||
Directors’ fees and expenses | 19 | 20 | 8 | 5 | ||||||||||||
Professional fees | 33 | 20 | 31 | 30 | ||||||||||||
Shareholders’ reports – printing and mailing expenses | 49 | 70 | 25 | 5 | ||||||||||||
Federal and state registration fees | 81 | 57 | 67 | 45 | ||||||||||||
Other expenses | 23 | 35 | 10 | 7 | ||||||||||||
Total expenses before expense reimbursement | 7,877 | 9,228 | 1,092 | 372 | ||||||||||||
Expense reimbursement | (1 | ) | — | (311 | ) | (75 | ) | |||||||||
Net expenses | 7,876 | 9,228 | 781 | 297 | ||||||||||||
Net investment income (loss) | 7,453 | 9,342 | 2,921 | 388 | ||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments and foreign currency | 79,230 | 51,311 | 11,480 | 779 | ||||||||||||
Futures contracts | (3,657 | ) | (10,916 | ) | 152 | 440 | ||||||||||
Redemptions in-kind | — | — | 2,330 | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments and foreign currency | (121,678 | ) | (93,469 | ) | (4,840 | ) | 754 | |||||||||
Futures contracts | 8,604 | 8,253 | 72 | (202 | ) | |||||||||||
Net realized and unrealized gain (loss) | (37,501 | ) | (44,821 | ) | 9,194 | 1,771 | ||||||||||
Net increase (decrease) in net assets from operations | $ | (30,048 | ) | $ | (35,479 | ) | $ | 12,115 | $ | 2,159 | ||||||
| N/A | – International Select, Quantitative Enhanced Core Equity and Tactical Market Opportunities do not offer Class B Shares. |
| (1) | – For the period November 1, 2010 through December 31, 2010. |
| (2) | – For the period February 24, 2011 (commencement of operations) through October 31, 2011. |
See accompanying notes to financial statements.
| Nuveen Investments | 61 |
Statement of Changes in Net Assets (all dollars are rounded to thousands (000))
| International | International Select | |||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 7,453 | $ | 5,972 | $ | 9,342 | $ | 7,381 | ||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments and foreign currency | 79,230 | 53,592 | 51,311 | 37,076 | ||||||||||||
Futures contracts | (3,657 | ) | (3,993 | ) | (10,916 | ) | (195 | ) | ||||||||
Redemptions in-kind | — | — | — | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments and foreign currency | (121,678 | ) | 5,309 | (93,469 | ) | 52,323 | ||||||||||
Futures contracts | 8,604 | (5,099 | ) | 8,253 | (7,356 | ) | ||||||||||
Net increase (decrease) in net assets from operations | (30,048 | ) | 55,781 | (35,479 | ) | 89,229 | ||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (108 | ) | (112 | ) | (33 | ) | (7 | ) | ||||||||
Class B | — | — | N/A | N/A | ||||||||||||
Class C | — | — | (1 | ) | — | |||||||||||
Class R3(1) | — | (2) | — | — | — | |||||||||||
Class I(1) | (4,195 | ) | (4,307 | ) | (6,454 | ) | (2,439 | ) | ||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class B | — | — | N/A | N/A | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3(1) | — | — | — | — | ||||||||||||
Class I(1) | — | — | — | — | ||||||||||||
Decrease in net assets from distributions to shareholders | (4,303 | ) | (4,419 | ) | (6,488 | ) | (2,446 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 9,534 | 31,093 | 100,110 | 331,375 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 3,104 | 3,022 | 1,538 | 709 | ||||||||||||
| 12,638 | 34,115 | 101,648 | 332,084 | |||||||||||||
Cost of shares redeemed | (495,221 | ) | (115,559 | ) | (330,484 | ) | (152,308 | ) | ||||||||
Cost of redemptions in-kind | — | — | — | — | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (482,583 | ) | (81,444 | ) | (228,836 | ) | 179,776 | |||||||||
Net increase (decrease) in net assets | (516,934 | ) | (30,082 | ) | (270,803 | ) | 266,559 | |||||||||
Net assets at the beginning of period | 683,472 | 713,554 | 854,518 | 587,959 | ||||||||||||
Net assets at the end of period | $ | 166,538 | $ | 683,472 | $ | 583,715 | $ | 854,518 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 6,115 | $ | 4,271 | $ | 7,930 | $ | 6,281 | ||||||||
See accompanying notes to financial statements.
| 62 | Nuveen Investments |
| Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 2,921 | $ | 2,593 | $ | 388 | $ | 49 | ||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments and foreign currency | 11,480 | 18,592 | 779 | 86 | ||||||||||||
Futures contracts | 152 | 88 | 440 | (22 | ) | |||||||||||
Redemptions in-kind | 2,330 | — | — | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments and foreign currency | (4,840 | ) | 2,535 | 754 | 117 | |||||||||||
Futures contracts | 72 | 234 | (202 | ) | (34 | ) | ||||||||||
Net increase (decrease) in net assets from operations | 12,115 | 24,042 | 2,159 | 196 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A(3) | (3 | ) | (3 | ) | — | — | ||||||||||
Class B | N/A | N/A | N/A | N/A | ||||||||||||
Class C(3) | (1 | ) | — | — | — | |||||||||||
Class R3(1) | N/A | N/A | N/A | N/A | ||||||||||||
Class I(1) | (2,864 | ) | (2,274 | ) | (155 | ) | — | |||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A(3) | — | — | — | — | ||||||||||||
Class B | N/A | N/A | N/A | N/A | ||||||||||||
Class C(3) | — | — | — | — | ||||||||||||
Class R3(1) | N/A | N/A | N/A | N/A | ||||||||||||
Class I(1) | — | — | (47 | ) | — | |||||||||||
Decrease in net assets from distributions to shareholders | (2,868 | ) | (2,277 | ) | (202 | ) | — | |||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 9,840 | 76,687 | 33,828 | 27,104 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 878 | 901 | 158 | — | ||||||||||||
| 10,718 | 77,588 | 33,986 | 27,104 | |||||||||||||
Cost of shares redeemed | (97,607 | ) | (42,197 | ) | (10,350 | ) | — | |||||||||
Cost of redemptions in-kind | (17,935 | ) | — | — | — | |||||||||||
Net increase (decrease) in net assets from Fund share transactions | (104,824 | ) | 35,391 | 23,636 | 27,104 | |||||||||||
Net increase (decrease) in net assets | (95,577 | ) | 57,156 | 25,593 | 27,300 | |||||||||||
Net assets at the beginning of period | 203,583 | 146,427 | 27,300 | — | ||||||||||||
Net assets at the end of period | $ | 108,006 | $ | 203,583 | $ | 52,893 | $ | 27,300 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,945 | $ | 1,951 | $ | 293 | $ | 52 | ||||||||
| N/A – | International Select does not offer Class B Shares. Quantitative Enhanced Core Equity and Tactical Market Opportunities do not offer Class B Shares and Class R3 Shares. |
| (1) – | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| (2) – | Amount rounds to less than $1,000. |
| (3) – | Tactical Market Opportunities did not offer Class A Shares and Class C Shares prior to February 24, 2011. |
See accompanying notes to financial statements.
| Nuveen Investments | 63 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| INTERNATIONAL | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (5/94) | ||||||||||||||||||||||||||||||||
2011 | $ | 11.62 | $ | .10 | $ | (.55 | ) | $ | (.45 | ) | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 11.12 | ||||||||||||
2010 | 10.78 | .07 | .81 | .88 | (.04 | ) | — | (.04 | ) | 11.62 | ||||||||||||||||||||||
2009 | 8.68 | .09 | 2.09 | 2.18 | (.08 | ) | — | (.08 | ) | 10.78 | ||||||||||||||||||||||
2008 | 17.15 | .26 | (7.14 | ) | (6.88 | ) | (.14 | ) | (1.45 | ) | (1.59 | ) | 8.68 | |||||||||||||||||||
2007 | 14.80 | .15 | 2.59 | 2.74 | (.13 | ) | (.26 | ) | (.39 | ) | 17.15 | |||||||||||||||||||||
Class B (3/95) | ||||||||||||||||||||||||||||||||
2011 | $ | 10.57 | $ | .01 | $ | (.50 | ) | $ | (.49 | ) | $ | — | $ | — | $ | — | $ | 10.08 | ||||||||||||||
2010 | 9.84 | (.02 | ) | .75 | .73 | — | — | — | 10.57 | |||||||||||||||||||||||
2009 | 7.92 | .02 | 1.90 | 1.92 | — | — | — | 9.84 | ||||||||||||||||||||||||
2008 | 15.78 | .14 | (6.52 | ) | (6.38 | ) | (.03 | ) | (1.45 | ) | (1.48 | ) | 7.92 | |||||||||||||||||||
2007 | 13.65 | .03 | 2.39 | 2.42 | (.03 | ) | (.26 | ) | (.29 | ) | 15.78 | |||||||||||||||||||||
Class C (9/01) | ||||||||||||||||||||||||||||||||
2011 | $ | 11.03 | $ | .01 | $ | (.53 | ) | $ | (.52 | ) | $ | — | $ | — | $ | — | $ | 10.51 | ||||||||||||||
2010 | 10.26 | (.02 | ) | .79 | .77 | — | — | — | 11.03 | |||||||||||||||||||||||
2009 | 8.25 | .02 | 1.99 | 2.01 | — | — | — | 10.26 | ||||||||||||||||||||||||
2008 | 16.36 | .15 | (6.79 | ) | (6.64 | ) | (.02 | ) | (1.45 | ) | (1.47 | ) | 8.25 | |||||||||||||||||||
2007 | 14.13 | .03 | 2.48 | 2.51 | (.02 | ) | (.26 | ) | (.28 | ) | 16.36 | |||||||||||||||||||||
Class R3 (4/94)(e) | ||||||||||||||||||||||||||||||||
2011 | $ | 11.61 | $ | .07 | $ | (.54 | ) | $ | (.47 | ) | $ | (.03 | ) | $ | — | $ | (.03 | ) | $ | 11.11 | ||||||||||||
2010 | 10.78 | .04 | .82 | .86 | (.03 | ) | — | (.03 | ) | 11.61 | ||||||||||||||||||||||
2009 | 8.67 | .07 | 2.11 | 2.18 | (.07 | ) | — | (.07 | ) | 10.78 | ||||||||||||||||||||||
2008 | 17.17 | .19 | (7.10 | ) | (6.91 | ) | (.14 | ) | (1.45 | ) | (1.59 | ) | 8.67 | |||||||||||||||||||
2007 | 14.81 | .10 | 2.61 | 2.71 | (.09 | ) | (.26 | ) | (.35 | ) | 17.17 | |||||||||||||||||||||
Class I (4/94)(e) | ||||||||||||||||||||||||||||||||
2011 | $ | 11.78 | $ | .14 | $ | (.59 | ) | $ | (.45 | ) | $ | (.08 | ) | $ | — | $ | (.08 | ) | $ | 11.25 | ||||||||||||
2010 | 10.92 | .10 | .83 | .93 | (.07 | ) | — | (.07 | ) | 11.78 | ||||||||||||||||||||||
2009 | 8.81 | .11 | 2.12 | 2.23 | (.12 | ) | — | (.12 | ) | 10.92 | ||||||||||||||||||||||
2008 | 17.38 | .30 | (7.24 | ) | (6.94 | ) | (.18 | ) | (1.45 | ) | (1.63 | ) | 8.81 | |||||||||||||||||||
2007 | 14.99 | .19 | 2.62 | 2.81 | (.16 | ) | (.26 | ) | (.42 | ) | 17.38 | |||||||||||||||||||||
| 64 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| (3.93 | )% | $ | 22,328 | 1.46 | % | .84 | % | 1.46 | % | .84 | % | 72 | % | |||||||||||||
| 8.21 | 26,698 | 1.59 | .51 | 1.48 | .62 | 56 | ||||||||||||||||||||
| 25.29 | 27,995 | 1.59 | .90 | 1.49 | 1.00 | 231 | ||||||||||||||||||||
| (43.82 | ) | 25,342 | 1.54 | 1.87 | 1.49 | 1.92 | 18 | |||||||||||||||||||
| 18.92 | 56,705 | 1.53 | .93 | 1.49 | .97 | 14 | ||||||||||||||||||||
| (4.64 | )% | $ | 948 | 2.21 | % | .08 | % | 2.21 | % | .08 | % | 72 | % | |||||||||||||
| 7.42 | 1,497 | 2.34 | (.26 | ) | 2.23 | (.15 | ) | 56 | ||||||||||||||||||
| 24.24 | 1,976 | 2.34 | .13 | 2.24 | .23 | 231 | ||||||||||||||||||||
| (44.19 | ) | 2,499 | 2.29 | 1.11 | 2.24 | 1.16 | 18 | |||||||||||||||||||
| 18.05 | 6,668 | 2.28 | .18 | 2.24 | .22 | 14 | ||||||||||||||||||||
| (4.71 | )% | $ | 1,987 | 2.21 | % | .10 | % | 2.21 | % | .10 | % | 72 | % | |||||||||||||
| 7.50 | 2,607 | 2.34 | (.25 | ) | 2.23 | (.14 | ) | 56 | ||||||||||||||||||
| 24.36 | 3,269 | 2.34 | .14 | 2.24 | .24 | 231 | ||||||||||||||||||||
| (44.21 | ) | 3,232 | 2.29 | 1.15 | 2.24 | 1.20 | 18 | |||||||||||||||||||
| 18.09 | 7,173 | 2.28 | .16 | 2.24 | .20 | 14 | ||||||||||||||||||||
| (4.10 | )% | $ | 11 | 1.68 | % | .59 | % | 1.68 | % | .59 | % | 72 | % | |||||||||||||
| 7.94 | 6 | 1.84 | .27 | 1.73 | .38 | 56 | ||||||||||||||||||||
| 25.39 | 5 | 1.84 | .63 | 1.74 | .73 | 231 | ||||||||||||||||||||
| (43.94 | ) | 2 | 1.79 | 1.35 | 1.74 | 1.40 | 18 | |||||||||||||||||||
| 18.66 | 4 | 1.78 | .56 | 1.74 | .60 | 14 | ||||||||||||||||||||
| (3.90 | )% | $ | 141,264 | 1.21 | % | 1.17 | % | 1.21 | % | 1.17 | % | 72 | % | |||||||||||||
| 8.52 | 652,664 | 1.34 | .76 | 1.23 | .87 | 56 | ||||||||||||||||||||
| 25.68 | 680,309 | 1.34 | 1.15 | 1.24 | 1.25 | 231 | ||||||||||||||||||||
| (43.68 | ) | 658,276 | 1.29 | 2.14 | 1.24 | 2.19 | 18 | |||||||||||||||||||
| 19.23 | 1,670,810 | 1.28 | 1.17 | 1.24 | 1.21 | 14 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 65 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| INTERNATIONAL SELECT | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/06) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.54 | $ | .09 | $ | (.72 | ) | $ | (.63 | ) | $ | (.06 | ) | $ | — | $ | (.06 | ) | $ | 8.85 | ||||||||||||
2010 | 8.48 | .06 | 1.02 | 1.08 | (.02 | ) | — | (.02 | ) | 9.54 | ||||||||||||||||||||||
2009 | 6.53 | .07 | 2.00 | 2.07 | (.12 | ) | — | (.12 | ) | 8.48 | ||||||||||||||||||||||
2008 | 12.15 | .15 | (5.52 | ) | (5.37 | ) | (.06 | ) | (.19 | ) | (.25 | ) | 6.53 | |||||||||||||||||||
2007(f) | 10.00 | .09 | 2.07 | 2.16 | (.01 | ) | — | (.01 | ) | 12.15 | ||||||||||||||||||||||
Class C (12/06) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.43 | $ | .02 | $ | (.72 | ) | $ | (.70 | ) | $ | (.01 | ) | $ | — | $ | (.01 | ) | $ | 8.72 | ||||||||||||
2010 | 8.42 | .01 | 1.00 | 1.01 | — | — | — | 9.43 | ||||||||||||||||||||||||
2009 | 6.46 | .03 | 1.97 | 2.00 | (.04 | ) | — | (.04 | ) | 8.42 | ||||||||||||||||||||||
2008 | 12.07 | .09 | (5.48 | ) | (5.39 | ) | (.03 | ) | (.19 | ) | (.22 | ) | 6.46 | |||||||||||||||||||
2007(f) | 10.00 | .03 | 2.04 | 2.07 | — | — | — | 12.07 | ||||||||||||||||||||||||
Class R3 (12/06)(e) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.48 | $ | .10 | $ | (.91 | ) | $ | (.81 | ) | $ | — | $ | — | $ | — | $ | 8.67 | ||||||||||||||
2010 | 8.42 | .05 | 1.01 | 1.06 | — | — | — | 9.48 | ||||||||||||||||||||||||
2009 | 6.52 | .09 | 1.94 | 2.03 | (.13 | ) | — | (.13 | ) | 8.42 | ||||||||||||||||||||||
2008 | 12.12 | .08 | (5.46 | ) | (5.38 | ) | (.03 | ) | (.19 | ) | (.22 | ) | 6.52 | |||||||||||||||||||
2007(f) | 10.00 | .07 | 2.06 | 2.13 | (.01 | ) | — | (.01 | ) | 12.12 | ||||||||||||||||||||||
Class I (12/06)(e) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.57 | $ | .12 | $ | (.74 | ) | $ | (.62 | ) | $ | (.08 | ) | $ | — | $ | (.08 | ) | $ | 8.87 | ||||||||||||
2010 | 8.49 | .09 | 1.02 | 1.11 | (.03 | ) | — | (.03 | ) | 9.57 | ||||||||||||||||||||||
2009 | 6.55 | .08 | 2.01 | 2.09 | (.15 | ) | — | (.15 | ) | 8.49 | ||||||||||||||||||||||
2008 | 12.17 | .17 | (5.52 | ) | (5.35 | ) | (.08 | ) | (.19 | ) | (.27 | ) | 6.55 | |||||||||||||||||||
2007(f) | 10.00 | .13 | 2.05 | 2.18 | (.01 | ) | — | (.01 | ) | 12.17 | ||||||||||||||||||||||
| 66 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| (6.70 | )% | $ | 4,388 | 1.46 | % | .96 | % | 1.46 | % | .96 | % | 59 | % | |||||||||||||
| 12.72 | 5,530 | 1.62 | .56 | 1.49 | .69 | 47 | ||||||||||||||||||||
| 32.32 | 3,029 | 1.76 | .77 | 1.49 | 1.04 | 64 | ||||||||||||||||||||
| (45.00 | ) | 1,904 | 1.70 | 1.31 | 1.49 | 1.52 | 63 | |||||||||||||||||||
| 21.58 | 3,228 | 1.89 | * | .55 | * | 1.49 | * | .95 | * | 45 | ||||||||||||||||
| (7.45 | )% | $ | 717 | 2.21 | % | .21 | % | 2.21 | % | .21 | % | 59 | % | |||||||||||||
| 12.00 | 816 | 2.37 | (.05 | ) | 2.24 | .08 | 47 | |||||||||||||||||||
| 31.43 | 244 | 2.51 | .13 | 2.24 | .40 | 64 | ||||||||||||||||||||
| (45.39 | ) | 226 | 2.45 | .71 | 2.24 | .92 | 63 | |||||||||||||||||||
| 20.75 | 287 | 2.64 | * | (.10 | )* | 2.24 | * | .30 | * | 45 | ||||||||||||||||
| (8.54 | )% | $ | 13 | 1.67 | % | 1.02 | % | 1.67 | % | 1.02 | % | 59 | % | |||||||||||||
| 12.59 | 7 | 1.87 | .40 | 1.74 | .53 | 47 | ||||||||||||||||||||
| 31.99 | 19 | 2.01 | 1.03 | 1.74 | 1.30 | 64 | ||||||||||||||||||||
| (45.10 | ) | 48 | 1.95 | .69 | 1.74 | .90 | 63 | |||||||||||||||||||
| 21.27 | 17 | 2.14 | * | .37 | * | 1.74 | * | .77 | * | 45 | ||||||||||||||||
| (6.60 | )% | $ | 578,597 | 1.21 | % | 1.23 | % | 1.21 | % | 1.23 | % | 59 | % | |||||||||||||
| 13.14 | 848,165 | 1.37 | .85 | 1.24 | .98 | 47 | ||||||||||||||||||||
| 32.68 | 584,667 | 1.51 | .90 | 1.24 | 1.17 | 64 | ||||||||||||||||||||
| (44.86 | ) | 249,805 | 1.45 | 1.51 | 1.24 | 1.72 | 63 | |||||||||||||||||||
| 21.78 | 343,161 | 1.64 | * | .96 | * | 1.24 | * | 1.36 | * | 45 | ||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| (f) | For the period December 21, 2006 (commencement of operations) through October 31, 2007. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 67 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| QUANTITATIVE ENHANCED CORE EQUITY | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (7/07) | ||||||||||||||||||||||||||||||||
2011 | $ | 20.50 | $ | .31 | $ | 1.02 | $ | 1.33 | $ | (.26 | ) | $ | — | $ | (.26 | ) | $ | 21.57 | ||||||||||||||
2010 | 18.01 | .25 | 2.48 | 2.73 | (.24 | ) | — | (.24 | ) | 20.50 | ||||||||||||||||||||||
2009 | 16.56 | .31 | 1.29 | 1.60 | (.15 | ) | — | (.15 | ) | 18.01 | ||||||||||||||||||||||
2008 | 26.90 | .40 | (10.21 | ) | (9.81 | ) | (.29 | ) | (.24 | ) | (.53 | ) | 16.56 | |||||||||||||||||||
2007(f) | 25.00 | .06 | 1.91 | 1.97 | (.07 | ) | — | (.07 | ) | 26.90 | ||||||||||||||||||||||
Class C (7/07) | ||||||||||||||||||||||||||||||||
2011 | $ | 20.50 | $ | .12 | $ | 1.06 | $ | 1.18 | $ | (.28 | ) | $ | — | $ | (.28 | ) | $ | 21.40 | ||||||||||||||
2010 | 17.91 | .08 | 2.51 | 2.59 | — | — | — | 20.50 | ||||||||||||||||||||||||
2009 | 16.51 | .24 | 1.24 | 1.48 | (.08 | ) | — | (.08 | ) | 17.91 | ||||||||||||||||||||||
2008 | 26.88 | .23 | (10.20 | ) | (9.97 | ) | (.16 | ) | (.24 | ) | (.40 | ) | 16.51 | |||||||||||||||||||
2007(f) | 25.00 | .02 | 1.90 | 1.92 | (.04 | ) | — | (.04 | ) | 26.88 | ||||||||||||||||||||||
Class I (7/07)(e) | ||||||||||||||||||||||||||||||||
2011 | $ | 20.57 | $ | .37 | $ | 1.03 | $ | 1.40 | $ | (.33 | ) | $ | — | $ | (.33 | ) | $ | 21.64 | ||||||||||||||
2010 | 18.04 | .29 | 2.51 | 2.80 | (.27 | ) | — | (.27 | ) | 20.57 | ||||||||||||||||||||||
2009 | 16.57 | .35 | 1.29 | 1.64 | (.17 | ) | — | (.17 | ) | 18.04 | ||||||||||||||||||||||
2008 | 26.90 | .44 | (10.20 | ) | (9.76 | ) | (.33 | ) | (.24 | ) | (.57 | ) | 16.57 | |||||||||||||||||||
2007(f) | 25.00 | .11 | 1.87 | 1.98 | (.08 | ) | — | (.08 | ) | 26.90 | ||||||||||||||||||||||
| 68 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 6.50 | % | $ | 164 | .86 | % | 1.25 | % | .70 | % | 1.41 | % | 159 | % | |||||||||||||
| 15.24 | 253 | .93 | 1.05 | .70 | 1.28 | 142 | ||||||||||||||||||||
| 9.87 | 243 | 1.01 | 1.62 | .69 | 1.94 | 75 | ||||||||||||||||||||
| (37.08 | ) | 118 | 1.18 | 1.29 | .70 | 1.77 | 153 | |||||||||||||||||||
| 7.89 | 131 | 1.40 | * | .21 | * | .70 | * | .91 | * | 55 | ||||||||||||||||
| 5.76 | % | $ | 108 | 1.61 | % | .40 | % | 1.45 | % | .56 | % | 159 | % | |||||||||||||
| 14.46 | 14 | 1.68 | .20 | 1.45 | .43 | 142 | ||||||||||||||||||||
| 9.05 | 4 | 1.76 | 1.25 | 1.44 | 1.57 | 75 | ||||||||||||||||||||
| (37.58 | ) | 10 | 1.93 | .51 | 1.45 | .99 | 153 | |||||||||||||||||||
| 7.69 | 15 | 2.15 | * | (.47 | )* | 1.45 | * | .23 | * | 55 | ||||||||||||||||
| 6.79 | % | $ | 107,734 | .63 | % | 1.50 | % | .45 | % | 1.68 | % | 159 | % | |||||||||||||
| 15.61 | 203,316 | .68 | 1.27 | .45 | 1.50 | 142 | ||||||||||||||||||||
| 10.13 | 146,180 | .76 | 1.87 | .44 | 2.19 | 75 | ||||||||||||||||||||
| (36.93 | ) | 89,270 | .93 | 1.51 | .45 | 1.99 | 153 | |||||||||||||||||||
| 7.93 | 48,745 | 1.15 | * | 1.03 | * | .45 | * | 1.73 | * | 55 | ||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class I Shares. |
| (f) | For the period July 31, 2007 (commencement of operations) through October 31, 2007. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 69 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| TACTICAL MARKET OPPORTUNITIES | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (2/11) | ||||||||||||||||||||||||||||||||
2011(e) | $ | 10.59 | $ | .04 | $ | .59 | $ | .63 | $ | — | $ | — | $ | — | $ | 11.22 | ||||||||||||||||
Class C (2/11) | ||||||||||||||||||||||||||||||||
2011(e) | $ | 10.59 | $ | — | * | $ | .58 | $ | .58 | $ | — | $ | — | $ | — | $ | 11.17 | |||||||||||||||
Class I (12/09)(f) | ||||||||||||||||||||||||||||||||
2011 | $ | 10.62 | $ | .14 | $ | .59 | $ | .73 | $ | (.08 | ) | $ | (.02 | ) | $ | (.10 | ) | $ | 11.25 | |||||||||||||
2010(g) | 10.00 | .02 | .60 | .62 | — | — | — | 10.62 | ||||||||||||||||||||||||
| 70 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 6.61 | % | $ | 3,558 | 1.67 | %** | .06 | %** | 1.19 | %** | .54 | % | 177 | % | |||||||||||||
| 5.87 | % | $ | 475 | 2.31 | %** | (.37 | )%** | 1.94 | %** | — | %*** | 177 | % | |||||||||||||
| 6.95 | % | $ | 48,860 | 1.18 | % | 1.01 | % | .94 | % | 1.25 | % | 177 | % | |||||||||||||
| 6.20 | 27,300 | 4.14 | ** | (1.83 | )** | .92 | ** | 1.39 | ** | 156 | ||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | For the period February 24, 2011 (commencement of operations) through October 31, 2011. |
| (f) | Effective January 18, 2011, Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class I Shares. |
| (g) | For the period December 30, 2009 (commencement of operations) through October 31, 2010. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
| *** | Annualized expense ratio rounds to less than .01%. |
See accompanying notes to financial statements.
| Nuveen Investments | 71 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000))
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”) known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the fund from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors were renamed Class R3 Shares and Class I Shares, respectively.
Effective May 15, 2011, Nuveen Quantitative Large Cap Core Fund is known as Nuveen Quantitative Enhanced Core Equity Fund.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen International Fund (“International”) formerly known as First American International Fund, Nuveen International Select Fund (“International Select”) formerly known as First American International Select Fund, Nuveen Quantitative Enhanced Core Equity Fund (“Quantitative Enhanced Core Equity”) formerly known as Nuveen Quantitative Large Cap Core Fund and First American Quantitative Large Cap Core Fund and Nuveen Tactical Market Opportunities Fund (“Tactical Market Opportunities”) formerly known as First American Tactical Market Opportunities Fund (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
International’s investment objective is long-term growth of capital. Under normal market conditions, the Fund invests primarily in equity securities that trade in U.S. or foreign markets, depositary receipts representing shares of foreign issuers, and exchange traded funds and other investment companies that provide exposure to foreign issuers. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
International Select’s investment objective is long-term growth of capital. Under normal market conditions, the Fund invests primarily in equity securities of foreign issuers that trade in U.S. or foreign markets, depositary receipts representing shares of foreign issuers, and exchange traded funds and other investment companies that provide exposure to foreign issuers.
Quantitative Enhanced Core Equity’s investment objective is to provide, over the long-term, a total return that exceeds the total return of the Standard & Poor’s 500 ® Index (“S&P 500 Index”). Under normal market conditions, the Fund invests at least 80% of net assets plus the amount of any borrowings for investment purposes in common stocks of large-capitalization companies within the same market capitalization range of companies in the S&P 500 Index. The Fund may also buy and sell stock index futures contracts.
Tactical Market Opportunities’ investment objective is to earn a positive total return over a reasonable period of time, regardless of market conditions. Under normal market conditions, the Fund will seek to outperform the Merrill Lynch 3 Month Treasury Bill Index (the “Treasury Bill Index”) by 400 basis points, or 4%, on an annualized basis. The Fund seeks to outperform the Treasury Bill Index over a reasonable period of time. The Fund seeks to achieve its objective by investing in U.S. international and emerging market equity and debt securities (including high yield debt securities), commodities, currencies, high quality, short-term debt securities and money market funds. The Fund also gains exposure to these assets classes by investing in exchange traded funds (“ETFs”) and derivative instruments such as options; futures contracts, including futures on equity and commodities indices, interest rate and currency futures; options on futures contracts; interest rate caps and floors; foreign currency contracts; options on foreign currencies; interest rate, total return, currency and credit default swaps; and options on the foregoing types of swap agreements.
Each Fund also may invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
| 72 | Nuveen Investments |
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in only limited volume in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to- ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange, which generally represents a transfer from a Level 1 to a Level 2 security.
The Exchange-Traded Funds (“ETFs”) in which the Funds invests are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1.
Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors. These securities are generally classified as Level 2. When price quotes are not readily available, 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. 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.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. Futures contracts are generally classified as Level 1.
If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds’ net asset value (NAV) is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Fund’s Board of Directors. These securities are generally classified as Level 2 or Level 3.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
| Nuveen Investments | 73 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for each Fund. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency exchange contracts, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern time. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, securities sold short, foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Change in net unrealized appreciation (depreciation) of foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively” on the Statement of Operations, when applicable.
Futures Contracts
Each Fund is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in an attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
| 74 | Nuveen Investments |
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2011, International and International Select invested in equity, fixed income and currency futures contracts, which were used as an overlay strategy to adjust the exposures created by the Funds’ multi-manager framework so that each Fund overall had the desired exposures to key markets. These Funds’ long and short futures contracts were used to implement various tactical market and hedging strategies. Quantitative Enhanced Core Equity invested in S&P 500 Index futures contracts, which were used to convert cash into the equivalent of an S&P 500 Index holding in order to minimize any tracking error to the Fund’s benchmark index resulting from cash flow activity and for tactical portfolio management positioning. Tactical Market Opportunities invested in equity, fixed income and currency futures contracts, which were used as part of the management of the Fund. This Fund’s long and short futures contracts were used to implement various absolute return, tactical market and hedging strategies.
The average number of futures contracts outstanding during the fiscal year ended October 31, 2011, for each Fund, were as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Average number of futures contracts outstanding* | 5,367 | 6,263 | 6 | 384 | ||||||||||||
| * | The average number of outstanding contracts is calculated based on the outstanding number of contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on futures contracts activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. If the value of the securities on loan increases, [such that the level of collateralization falls below 102%], additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and
| Nuveen Investments | 75 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM also received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Securities lending fees paid | $ | — | $ | — | $ | 9 | $ | — | ||||||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| International | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 146,223 | $ | — | $ | — | $ | 146,223 | ||||||||
Exchange-Traded Funds | 6,693 | — | — | 6,693 | ||||||||||||
Rights | 14 | — | — | 14 | ||||||||||||
Short-Term Investments | 4,511 | 8,471 | — | 12,982 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 1,428 | — | — | 1,428 | ||||||||||||
Total | $ | 158,869 | $ | 8,471 | $ | — | $ | 167,340 | ||||||||
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
| 76 | Nuveen Investments |
| International Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 502,338 | $ | — | $ | 1,117 | $ | 503,455 | ||||||||
Exchange-Traded Funds | 29,708 | — | — | 29,708 | ||||||||||||
Rights | | 32 | | | — | | — | | 32 | | ||||||
Short-Term Investments | 21,253 | 28,773 | — | 50,026 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | (1,467 | ) | — | — | (1,467 | ) | ||||||||||
Total | $ | 551,864 | $ | 28,773 | $ | 1,117 | $ | 581,754 | ||||||||
| Quantitative Enhanced Core Equity | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 105,793 | $ | — | $ | — | *** | $ | 105,793 | |||||||
Money Market Funds**** | 42,979 | — | — | 42,979 | ||||||||||||
Short-Term Investments | 1,766 | 750 | — | 2,516 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 72 | — | — | 72 | ||||||||||||
Total | $ | 150,610 | $ | 750 | $ | — | *** | $ | 151,360 | |||||||
| Tactical Market Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Exchange-Traded Funds | $ | 13,336 | $ | — | $ | — | $ | 13,336 | ||||||||
Corporate Bonds | — | 5,198 | — | 5,198 | ||||||||||||
U.S. Government & Agency Obligations | — | 4,864 | — | 4,864 | ||||||||||||
Short-Term Investments | 26,652 | 2,200 | — | 28,852 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | (236 | ) | — | — | (236 | ) | ||||||||||
Total | $ | 39,752 | $ | 12,262 | $ | — | $ | 52,014 | ||||||||
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
| *** | Level 3 security has a market value of zero. |
| **** | Represents the Fund’s investments purchased with collateral from securities lending. |
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| International Select Level 3 Common Stocks | Quantitative Enhanced Core Equity Level 3 Common Stocks | |||||||
Balance at the beginning of year | $ | 1,507 | $ | — | *** | |||
Gains (losses): | ||||||||
Net realized gains (losses) | 179 | — | ||||||
Net change in unrealized appreciation (depreciation) | (389 | ) | — | |||||
Purchases at cost | — | — | ||||||
Sales at proceeds | (340 | ) | — | |||||
Net discounts (premiums) | — | — | ||||||
Transfers in to | 1,117 | — | ||||||
Transfers out of | (957 | ) | — | |||||
Balance at the end of year | $ | 1,117 | $ | — | *** | |||
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011 | $ | 159 | $ | — | *** | |||
| *** | Level 3 security has a market value of zero. |
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.
| Nuveen Investments | 77 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
The following tables present the fair value of all derivative instruments held by the Funds as of October 31, 2011, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.
| International | ||||||||||||||
Location on the Statement of Assets and Liabilities | ||||||||||||||
| Underlying Risk Exposure | Derivative Instrument | Asset Derivative | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 3,221 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | 1,793 | |||||||
| International Select | ||||||||||||||
Location on the Statement of Assets and Liabilities | ||||||||||||||
| Underlying Risk Exposure | Derivative Instrument | Asset Derivative | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 5,924 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | 6,667 | |||||||
Foreign Currency Exchange Rate | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | — | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | 724 | |||||||||
Total | $ | 5,924 | $ | 7,391 | ||||||||||
| Quantitative Enhanced Core Equity | ||||||||||||||
Location on the Statement of Assets and Liabilities | ||||||||||||||
| Underlying Risk Exposure | Derivative Instrument | Asset Derivative | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 72 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | — | |||||||
| Tactical Market Opportunities | ||||||||||||||
Location on the Statement of Assets and Liabilities | ||||||||||||||
| Underlying Risk Exposure | Derivative Instrument | Asset Derivative | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 531 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | 498 | |||||||
Foreign Currency Exchange Rate | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | — | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | 285 | |||||||||
Interest Rate | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | 16 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | — | |||||||||
Total | $ | 547 | $ | 783 | ||||||||||
| * | Value represents cumulative gross unrealized appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments and not the deposits with brokers, if any, or receivable or payable for variation margin on futures contracts presented on the Statement of Assets and Liabilities. |
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.
| Net Realized Gain (Loss) from Futures Contracts | International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | ||||||||||||
Risk Exposure | ||||||||||||||||
Equity | $ | 7,354 | $ | (6,852 | ) | $ | 152 | $ | 583 | |||||||
Foreign Currency Exchange Rate | (4,303 | ) | (4,064 | ) | — | (170 | ) | |||||||||
Interest Rate | (6,708 | ) | — | — | 27 | |||||||||||
Total | $ | (3,657 | ) | $ | (10,916 | ) | $ | 152 | $ | 440 | ||||||
| 78 | Nuveen Investments |
| Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | ||||||||||||
Risk Exposure | ||||||||||||||||
Equity | $ | 4,799 | $ | 5,303 | $ | 72 | $ | 64 | ||||||||
Foreign Currency Exchange Rate | 3,805 | 2,950 | — | (285 | ) | |||||||||||
Interest Rate | — | — | — | 19 | ||||||||||||
Total | $ | 8,604 | $ | 8,253 | $ | 72 | $ | (202 | ) | |||||||
4. Fund Shares
Transactions in Fund shares were as follows:
| International | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 156 | $ | 1,889 | 211 | $ | 2,352 | ||||||||||
Class B | 1 | 8 | 6 | 67 | ||||||||||||
Class C | 10 | 108 | 21 | 235 | ||||||||||||
Class R3 (1) | — | 5 | 1 | 1 | ||||||||||||
Class I (1) | 611 | 7,524 | 2,499 | 28,438 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 8 | 99 | 9 | 103 | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | 245 | 3,005 | 251 | 2,919 | ||||||||||||
| 1,031 | 12,638 | 2,998 | 34,115 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (453 | ) | (5,470 | ) | (520 | ) | (5,764 | ) | ||||||||
Class B | (49 | ) | (534 | ) | (65 | ) | (667 | ) | ||||||||
Class C | (57 | ) | (629 | ) | (104 | ) | (1,100 | ) | ||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | (43,703 | ) | (488,588 | ) | (9,647 | ) | (108,028 | ) | ||||||||
| (44,262 | ) | (495,221 | ) | (10,336 | ) | (115,559 | ) | |||||||||
Net increase (decrease) | (43,231 | ) | $ | (482,583 | ) | (7,338 | ) | $ | (81,444 | ) | ||||||
| International Select | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 128 | $ | 1,262 | 352 | $ | 3,042 | ||||||||||
Class C | 10 | 102 | 62 | 561 | ||||||||||||
Class R3 (1) | 2 | 16 | 1 | 2 | ||||||||||||
Class I (1) | 10,212 | 98,730 | 36,745 | 327,770 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 3 | 28 | 1 | 5 | ||||||||||||
Class C | — | 1 | — | — | ||||||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | 152 | 1,509 | 78 | 704 | ||||||||||||
| 10,507 | 101,648 | 37,239 | 332,084 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (214 | ) | (2,113 | ) | (131 | ) | (1,140 | ) | ||||||||
Class C | (15 | ) | (145 | ) | (4 | ) | (38 | ) | ||||||||
Class R3 (1) | (1 | ) | (8 | ) | (2 | ) | (15 | ) | ||||||||
Class I (1) | (33,796 | ) | (328,218 | ) | (17,034 | ) | (151,115 | ) | ||||||||
| (34,026 | ) | (330,484 | ) | (17,171 | ) | (152,308 | ) | |||||||||
Net increase (decrease) | (23,519 | ) | $ | (228,836 | ) | 20,068 | $ | 179,776 | ||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| Nuveen Investments | 79 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
| Quantitative Enhanced Core Equity | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2 | $ | 47 | 2 | $ | 52 | ||||||||||
Class C | 4 | 108 | 1 | 10 | ||||||||||||
Class I (1) | 441 | 9,685 | 3,897 | 76,625 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | 2 | — | 2 | ||||||||||||
Class C | — | 1 | — | — | ||||||||||||
Class I (1) | 40 | 875 | 46 | 899 | ||||||||||||
| 487 | 10,718 | 3,946 | 77,588 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (6 | ) | (153 | ) | (4 | ) | (76 | ) | ||||||||
Class C | — | (12 | ) | — | — | |||||||||||
Class I (1) | (4,517 | ) | (97,442 | ) | (2,159 | ) | (42,121 | ) | ||||||||
Class I (1) -in-kind | (871 | ) | (17,935 | ) | — | — | ||||||||||
| (5,394 | ) | (115,542 | ) | (2,163 | ) | (42,197 | ) | |||||||||
Net increase (decrease) | (4,907 | ) | $ | (104,824 | ) | 1,783 | $ | 35,391 | ||||||||
| Tactical Market Opportunities | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 330 | $ | 3,676 | — | $ | — | ||||||||||
Class C | 42 | 469 | — | — | ||||||||||||
Class I (1) | 2,710 | 29,683 | 2,571 | 27,104 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class I (1) | 15 | 158 | — | — | ||||||||||||
| 3,097 | 33,986 | 2,571 | 27,104 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (13 | ) | (146 | ) | — | — | ||||||||||
Class C | — | — | — | — | ||||||||||||
Class I (1) | (954 | ) | (10,204 | ) | — | — | ||||||||||
| (967 | ) | (10,350 | ) | — | — | |||||||||||
Net increase (decrease) | 2,131 | $ | 23,636 | 2,571 | $ | 27,104 | ||||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
International | 23 | 39 | ||||||
| 80 | Nuveen Investments |
5. Investment Transactions
Purchases and sales (excluding short-term investments and derivative transactions, where applicable) during the fiscal year ended October 31, 2011, were as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Purchases: | ||||||||||||||||
Investment securities | $ | 417,588 | $ | 409,824 | $ | 270,699 | $ | 27,017 | ||||||||
U.S. Government obligations | — | — | — | 5,274 | ||||||||||||
Sales and maturities: | ||||||||||||||||
Investment securities | 849,426 | 629,468 | 373,684 | 24,049 | ||||||||||||
U.S. Government obligations | — | — | — | 4,221 | ||||||||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Cost of investments | $ | 173,638 | $ | 602,475 | $ | 148,220 | $ | 51,426 | ||||||||
Gross unrealized: | ||||||||||||||||
Appreciation | $ | 11,268 | $ | 43,505 | $ | 7,280 | $ | 1,166 | ||||||||
Depreciation | (18,994 | ) | (62,759 | ) | (4,212 | ) | (342 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments | $ | (7,726 | ) | $ | (19,254 | ) | $ | 3,068 | $ | 824 | ||||||
Permanent differences, primarily due to the redemption in-kind, tax equalization, REIT adjustments, foreign currency reclassifications and investments in passive foreign investment companies, resulted in reclassifications amount the Funds’ components of net assets at October 31, 2011, as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Capital paid-in | $ | 51,556 | $ | 6,812 | $ | 5,390 | $ | — | ||||||||
Undistributed (Over-distribution) of net investment income | (1,304 | ) | (1,205 | ) | (60 | ) | 7 | |||||||||
Accumulated net realized gain (loss) | (50,252 | ) | (5,607 | ) | (5,330 | ) | (7 | ) | ||||||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ tax year end, were as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Undistributed net ordinary income* | $ | 6,143 | $ | 7,993 | $ | 1,951 | $ | 1,123 | ||||||||
Undistributed net long-term capital gains | 19,357 | 6,306 | 1,581 | 396 | ||||||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
| Nuveen Investments | 81 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
The tax character of distributions paid during the Funds’ tax years ended October 31, 2011 and October 31, 2010, was designated for purposes of the dividends paid deduction as follows:
| 2011 | International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | ||||||||||||
Distributions from net ordinary income* | $ | 4,303 | $ | 6,488 | $ | 2,868 | $ | 202 | ||||||||
Distributions from net long-term capital gains | — | — | — | — | ||||||||||||
| 2010 | International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | ||||||||||||
Distributions from net ordinary income* | $ | 4,419 | $ | 2,446 | $ | 2,277 | $ | — | ||||||||
Distributions from net long-term capital gains | — | — | — | — | ||||||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
During the Funds’ tax year ended October 31, 2011, the following Funds utilized their capital loss carryforwards as follows:
| International | International Select | Quantitative Enhanced Core Equity | ||||||||||
Utilized capital loss carryforwards | $ | 14,507 | $ | 38,754 | $ | 7,766 | ||||||
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors a monthly advisory fee, on an annual basis, equal to each Fund’s average daily net assets as follows:
| Fund | Advisory Fee Rate | |||
International | 1.00 | % | ||
International Select | 1.00 | |||
Quantitative Enhanced Core Equity | .30 | |||
Tactical Market Opportunities | .75 | |||
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by Nuveen Fund Advisors.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | ||||||||||||
For the first $125 million | .8500 | % | .8500 | % | .3000 | % | .6000 | % | ||||||||
For the next $125 million | .8375 | .8375 | .2875 | .5875 | ||||||||||||
For the next $250 million | .8250 | .8250 | .2750 | .5750 | ||||||||||||
For the next $500 million | .8125 | .8125 | .2625 | .5625 | ||||||||||||
For the next $1 billion | .8000 | .8000 | .2500 | .5500 | ||||||||||||
For net assets over $2 billion | .7750 | .7750 | .2250 | .5250 | ||||||||||||
| 82 | Nuveen Investments |
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule for each Fund is as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of $2 billion added to the Nuveen fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rate for each Fund was as follows: |
| Fund | Rate | |||
International | .1759 | % | ||
International Select | .1759 | |||
Quantitative Enhanced Core Equity | .2000 | |||
Tactical Market Opportunities | .1843 | |||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Funds overall strategy and asset allocation decisions. Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, Altrinsic Global Advisors, LLC (“Altrinsic”) and Hansberger Global Investors, Inc. (“HGI”) served as sub-advisers to International and International Select pursuant to separate sub-advisory agreements with FAF Advisors. Effective January 1, 2011, Altrinsic, HGI, and Lazard Asset Management, LLC (“Lazard”) each continue to serve as investment sub-advisers to International and International Select pursuant to separate sub-advisory agreements with Nuveen Fund Advisors. Each sub-adviser had and continues to have discretion to select portfolio securities for its portion of the respective Fund. Altrinsic, HGI, and Lazard are compensated for their services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed each investing Fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations, and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
| Nuveen Investments | 83 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
During the period November 1, 2010 through December 31, 2010, FAF Advisors agreed to waive fees and reimburse other Fund expenses through February 28, 2011 so that total annual Fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange-traded funds and other investment companies, as a percentage of each Fund’s average daily net assets, did not exceed the following amounts:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Class A Shares | 1.49 | % | 1.49 | % | .70 | % | N/A | |||||||||
Class B Shares | 2.24 | N/A | N/A | N/A | ||||||||||||
Class C Shares | 2.24 | 2.24 | 1.45 | N/A | ||||||||||||
Class R3 Shares (1) | 1.74 | 1.74 | N/A | N/A | ||||||||||||
Class I Shares (1) | 1.24 | 1.24 | .45 | .95 | % | |||||||||||
Expiration Date | February 28, 2011 | February 28, 2011 | February 28, 2011 | February 28, 2011 | ||||||||||||
| N/A - | International Select does not offer Class B Shares. Quantitative Enhanced Core Equity and Tactical Market Opportunities do not offer Class B Shares and Class R3 Shares. Tactical Market Opportunities did not offer Class A Shares and Class C Shares until February 24, 2011. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Effective January 1, 2011, Nuveen Fund Advisors contractually agreed to waive fees and reimburse other Fund expenses of each Fund so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Class A Shares | 1.49 | % | 1.49 | % | .70 | % | 1.20 | % | ||||||||
Class B Shares | 2.24 | N/A | N/A | N/A | ||||||||||||
Class C Shares | 2.24 | 2.24 | 1.45 | 1.95 | ||||||||||||
Class R3 Shares (1) | 1.74 | 1.74 | N/A | N/A | ||||||||||||
Class I Shares (1) | 1.24 | 1.24 | .45 | .95 | ||||||||||||
Expiration Date | February 29, 2012 | February 29, 2012 | February 29, 2012 | February 29, 2012 | ||||||||||||
| N/A - | Fund does not offer Class B Shares. Quantitative Enhanced Core Equity and Tactical Market Opportunities do not offer Class B Shares and Class R3 Shares. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Funds advised by Nuveen Fund Advisors.
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
| 84 | Nuveen Investments |
Custodian Fees
U.S. Bank serves as the custodian for each Fund other than International and International Select pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as the custodian for International and International Select pursuant to an agreement with the Trust. International and International Select pay SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly.
Interest earned on un-invested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Under the new agreement, Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares will continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC. collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Sales charges collected (Unaudited) | $ | 11 | $ | 6 | $ | — | $ | 7 | ||||||||
Paid to financial intermediaries (Unaudited) | 10 | 5 | — | 6 | ||||||||||||
Quasar and/or Nuveen Securities, LLC. also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC. compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
Commission advances (Unaudited) | $ | 1 | $ | 1 | $ | 1 | $ | 3 | ||||||||
All 12b-1 service and distribution fees collected on Class B Shares and C Shares during the first year following a purchase were retained by Quasar and/or Nuveen Securities, LLC to compensate for commissions advanced to financial intermediaries. During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC retained such 12b-1 fees as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
12b-1 fees retained (Unaudited) | $ | 10 | $ | 3 | $ | 1 | $ | 1 | ||||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $4 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
| Nuveen Investments | 85 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of all the Funds, were sold with an up-front sales charge of 5.50%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Effective January 18, 2011, Class A Shares of the Funds are sold with an up-front sales charge of 5.75% with the exception of Quantitative Enhanced Core Equity. Quantitative Enhanced Core Equity only issues Class A Shares for purchase by certain retirement plans and by qualifying clients of investment advisers, financial planners or other financial intermediaries that charge periodic or asset-based fees for their service. Class A Shares of Quantitative Enhanced Core Equity are offered to these investors at their net asset value per share with no up-front sales charge. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Quasar and/or Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| International | International Select | Quantitative Enhanced Core Equity | Tactical Market Opportunities | |||||||||||||
CDSC retained (Unaudited) | $ | 2 | $ | 1 | $ | — | $ | — | ||||||||
Affiliated Retirement Plan and Redemptions In-Kind
An affiliated 401(k) plan of FAF Advisors, (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 1, 2010, in the amounts as follows:
Quantitative Enhanced Core Equity | $ | 17,935 |
In this transaction, the Fund paid redemption proceeds by distributing a proportionate amount of securities in its respective portfolio. Remaining shareholders in the Fund did not recognize any capital gains from the transaction.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
| 86 | Nuveen Investments |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
| Nuveen Investments | 87 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
| 88 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
| Nuveen Investments | 89 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
| 90 | Nuveen Investments |
Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). In addition, for the Nuveen International Fund (formerly known as the International Fund) (the “International Fund”) and the Nuveen International Select Fund (formerly known as the International Select Fund) (the “International Select Fund”) (collectively, the “International Sub-Advised Funds”), the Prior Board approved new investment sub-advisory agreements (each, a “New International Sub-Advisory Agreement”) between NAM and the sub-advisors of such Funds (which included Altrinsic Global Advisors, LLC (for the International Fund and the International Select Fund), Hansberger Global Investors, Inc. (for the International Fund and the International Select Fund) and Lazard Asset Management LLC (for the International Select Fund) (collectively, the “International Fund Sub-Advisors”)), given that the investment sub-advisory agreements for such Funds (the “Prior International Sub-Advisory Agreements”) between FAF and the applicable International Fund Sub-Advisors would automatically terminate upon the completion of the Transaction. At a meeting of the Funds’ stockholders held on December 17, 2010, stockholders of each of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement and stockholders of the International Sub-Advised Funds approved the applicable New International Sub-Advisory Agreements. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement, the NAM Sub-Advisory Agreement and the New International Sub-Advisory Agreements became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for all of the Funds and the New International Sub-Advisory Agreements for the International Sub-Advised Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
| Nuveen Investments | 91 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process. The Prior Board also considered representations from NFA and FAF that no International Fund Sub-Advisor would change as a result of the Transaction.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on
| 92 | Nuveen Investments |
Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
New International Sub-Advisory Agreements. At an in-person meeting held on October 7, 2010, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, considered whether to approve the New International Sub-Advisory Agreements.
The Prior Board considered that completion of the Transaction would result in the termination of the Prior Advisory Agreement for each International Sub-Advised Fund, which would cause each Prior International Sub-Advisory Agreement to automatically terminate upon its terms. In anticipation of the termination of the Prior International Sub-Advisory Agreements, the Prior Board determined that the approval of New International Sub-Advisory Agreements was in the best interests of each International Sub-Advised Fund.
In determining whether to approve New International Sub-Advisory Agreements with respect to each International Sub-Advised Fund, the Prior Board considered representations of FAF and NFA that the Transaction was not expected to impact the nature, extent and quality of services to be provided by the International Fund Sub-Advisors. The Prior Board also considered that the terms of the New International Sub-Advisory Agreements, including the fees payable to the International Fund Sub-Advisors, would not change in any material respect in connection with the Transaction. They considered the sub-advisory fees in light of the changes to the advisory fee and expense structure discussed above, noting that the sub-advisory fee schedules include breakpoints. The Prior Board also considered that the International Sub-Advised Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement to stockholders of the International Sub-Advised Funds and related solicitation expenses. The Prior Board considered that it had recently renewed the Prior International Sub-Advisory Agreements pursuant to an extensive annual renewal process that concluded at its June 2010 meeting. The Prior Board also determined that it was appropriate to take into consideration the extensive information received throughout the year regarding performance and operating results of the International Sub-Advised Funds, given the retention of the existing International Fund Sub-Advisors and the continuity of portfolio management expected following the Transaction. The Prior Board concluded, based upon all of these considerations, along with the conclusions the Prior Board reached with respect to the last renewal of each Prior International Sub-Advisory Agreement, that it need not reconsider all of the factors that it would typically consider in connection with an initial contract approval or contract renewal.
| Nuveen Investments | 93 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
Based upon its evaluation of all information and factors it determined to be relevant to its deliberations, and assisted by the advice of independent legal counsel, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, concluded that the New International Sub-Advisory Agreements between NAM (now NFA) and each International Sub-Advised Fund’s International Fund Sub-Advisors should be approved.
| 94 | Nuveen Investments |
Notes
| Nuveen Investments | 95 |
Notes
| 96 | Nuveen Investments |
Notes
| Nuveen Investments | 97 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index: The Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that is comprised of a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Lipper International Large-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper International Large-Cap Growth Fund Classification. The Lipper International Large-Cap Growth Funds Classification Average contained 247, 181 and 113 funds for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Large-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Fund Classification. The Lipper Large-Cap Core Funds Classification Average contained 1,081 and 831 funds for the 1-year and since inception periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Flexible Portfolio Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Flexible Portfolio Funds Classification. Lipper Flexible Portfolio Funds Classification Average contained 178 and 137 funds for the 1-year and since inception periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment
MSCI EAFE Index: The MSCI (Morgan Stanley Capital International) EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
MSCI All Country World Investable Market Index (ex US): The MSCI (Morgan Stanley Capital International) All Country World Investable Market Index (ex US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 45 country indexes comprising 24 developed and 21 emerging market countries. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
S&P 500 Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
| 98 | Nuveen Investments |
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Advisers
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Altrinsic Global Advisors, LLC
100 First Stamford Place
Stamford, CT 06902
Hansberger Global Investors, Inc.
401 East Lasolas Blvd.
Suite 1700
Fort Lauderdale, FL 33301
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodians
U.S. Bank National Association
St. Paul, MN
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Distribution Information: The Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and their percentages as qualified dividend income (“QDI”) for individuals under Section 1 (h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| Fund | % of DRD | % of QDI | ||||||
Nuveen International Fund | 1.20% | 100% | ||||||
Nuveen International Select Fund | 1.26% | 99.77% | ||||||
Nuveen Quantitative Enhanced Core Equity Fund | 100% | 100% | ||||||
Nuveen Tactical Market Opportunities Fund | 0% | 32.00% | ||||||
Long Term Capital Gain Distributions: The following Funds designate as a long term capital gain dividend, pursuant to Internal Revenue Code Section 852 (b)(3), the amounts shown in the accompanying table, or if greater, the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2011:
| Fund | Long Term Capital Gain Dividend (in thousands) | |||
Nuveen International Fund | $ | 32,097 | ||
Nuveen International Select Fund | 6,812 | |||
Nuveen Quantitative Enhanced Core Equity Fund | 3,070 | |||
Foreign Taxes: Nuveen International Fund and Nuveen International Select Fund paid qualifying foreign taxes of $1,597 and $1,731, respectively (in thousands), and earned $14,623 and $18,525 of foreign source income, respectively (in thousands), during the fiscal year ended October 31, 2011. Pursuant to Section 853 of the Internal Revenue Code, Nuveen International Fund and Nuveen International Select Fund hereby designate $0.11 and $0.03 per share as foreign taxes paid, respectively, and $0.98 and $0.28 per share as income earned from foreign sources, respectively, for the fiscal year ended October 31, 2011. The actual foreign tax credit distribution will be reported to shareholders on Form 1099-DIV, which will be sent to shareholders shortly after calendar year end.
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MAN-FQTII-1011D
Mutual Funds
Nuveen Equity Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen Large Cap Growth Opportunities Fund | FRGWX | FETBX | FAWCX | FLCYX | FIGWX | |||||
Nuveen Mid Cap Growth Opportunities Fund | FRSLX | FMQBX | FMECX | FMEYX | FISGX | |||||
Nuveen Small Cap Growth Opportunities Fund | FRMPX | FROBX | FMPCX | FMPYX | FIMPX | |||||
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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.
These Funds, all former First American equity funds, feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Harold (Hal) Goldstein, Scott Mullinix, CFA, and James (Jim) Diedrich, CFA, are the portfolio managers for the Nuveen Large Cap Growth Opportunities Fund (formerly known as First American Large Cap Growth Opportunities Fund). Hal, who has more than 29 years of financial industry experience, assumed portfolio management responsibilities in 2002. Scott and Jim, who have more than 22 and 27 years of experience, respectively, have been on the management team for the Fund since 2006.
Jim, Hal and Scott are also the portfolio managers for the Nuveen Mid Cap Growth Opportunities Fund (formerly known as First American Mid Cap Growth Opportunities Fund). Jim and Scott assumed portfolio management responsibilities in 2006. Hal has been on the management team of the Fund since 2005.
Rob McDougall, CFA, and Jon Loth, CFA, are the portfolio managers for the Nuveen Small Cap Growth Opportunities Fund (formerly known as First American Small Cap Growth Opportunities Fund). Rob, who has 23 years of financial industry experience, assumed portfolio management responsibilities in 2004. Jon, with 17 years of experience, has been on the management team for the Fund since 2007.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the U.S. economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
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In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt issue caused a high degree of volatility in the equity markets. The first half of the period saw dramatic gains for stocks and other risk assets fueled by signs of an improving economy. However, as the summer progressed, markets fell back sharply. For much of August and September, stocks traded lower before staging a comeback in the final month of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen Large Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell 1000 Growth Index and outperformed the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies that have market capitalizations of $3 billion or greater at the time of purchase. We start by identifying what we believe are exceptional growth companies with open-ended growth prospects, outstanding financial characteristics and solid management teams. From that highly selective group, we invest in companies where our expectations for earnings growth exceed consensus expectations. For each Fund holding, we develop a proprietary growth thesis. When the growth thesis is validated, we hold or buy more; however, when our growth thesis is violated, we sell the holding. Although we made individual position changes during the Fund’s fiscal year, our underlying investment strategy remained consistent.
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The Fund’s performance over the one-year period benefited from strong stock selection in several sectors, including consumer discretionary, industrial, technology and health care. In the consumer discretionary sector, we continued to benefit from our strategic balance between consumer-oriented holdings that target affluent consumers, who continued to spend throughout the recent economic challenges, and those that focus on more value-oriented shoppers. Standouts within this top-performing area of the portfolio included lululemon Athletica, Ralph Lauren, Dollar Tree and Starbucks. Specialty retailer lululemon Athletica, a designer and retailer of yoga-inspired athletic apparel, benefited from strong sales trends as high-end consumers quickly bounced back from the recession and shoppers generally shifted away from large department stores toward specialty retailers. The company reported strong earnings and we believe still has the potential to significantly grow its number of stores. Ralph Lauren, a designer and retailer of higher end apparel and household products, benefited from its continued solid brand presence, margin improvement potential and strong international growth prospects. Dollar Tree, which owns and operates discount variety stores, produced positive earnings per share surprises and strong operating results as its unique business model continued to attract the cash-conscious consumer. Meanwhile, coffee purveyor Starbucks continued to benefit from rapid store growth outside the United States combined with moderate domestic store growth. Starbucks is also experiencing growth in its retail business due to its recent agreement to sell Kuerig single-cup coffee machines and Starbucks-branded K-cup products at its stores.
In the industrials sector, the Fund benefited from a favorable takeout bid for portfolio holding Goodrich, an important components supplier to the commercial aerospace and defense industries, by United Technologies, one of our large, multi-industry holdings. Goodrich holds an attractive position in the fast-growing airplane replacement part industry, as it is the leading supplier of parts for the newest class of aircraft. Within technology, the Fund was rewarded for its position in Teradata, which offers data management and analytical tools to help other companies uncover customer patterns and trends. Its stock gained as companies around the globe attempted to increase their effectiveness through customer data analysis.
In health care, the Fund gained from owning Perrigo, a specialty pharmaceutical company that develops and markets private-label, over-the-counter pharmaceutical and nutritional products. The company continued to benefit from its customers adding more store brands, its overseas growth, its expanding margins and a business model that is generally uncorrelated to economic activity. Perrigo also is capitalizing on the recent increases in the number of prescription drugs migrating to over-the-counter medications and on consumer demand for less expensive, store-branded products.
The Fund’s results in the energy and financial sectors offset the above-mentioned areas of strength. In energy, our underweight position in what was one of the top-performing sectors, along with poor stock selection, hurt results. In terms of stock selection, the Fund was hindered by its lack of exposure to Exxon Mobil. This energy bellwether, which is a large component of the Russell 1000 Growth Index, rose more than the energy segment overall. In addition, three highly cyclical companies within our energy portfolio — Pioneer Natural Resources, Halliburton and CARBO Ceramics — contributed to our underperformance as
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investors feared they would be the most negatively impacted by rising fears of a global economic slowdown. We continue to own all three companies because of our belief that they will benefit from the increased drilling in shale formations, particularly in the United States. Pioneer Natural Resources is an exploration and production company that has attractive assets in shale acreage and is extracting oil at a favorable cost. CARBO Ceramics is one of the few companies that makes the ceramic proppant used in oil and gas drilling that enhances the recoverability of a shale well. Halliburton produces, services and monitors the horsepower used to drill horizontally into the shale wells and force the proppants into the shaft.
Financials were a weak group all year because of concerns and uncertainty surrounding regulatory changes, capital requirements, credit issues and exposure to European debt. While we were correctly concerned about financials and underweight in the sector, our position in Goldman Sachs fell short of the group. The uncertain regulatory environment, combined with weakened capital markets, has contributed to a fall-off in Goldman’s franchise. Because of our concerns about its long-term economic model, we sold our position during the period.
Along the same line, we eliminated several other stocks from the Fund that violated our growth thesis mentioned earlier. Stocks that we sold generally faced an expected or actual deterioration in their fundamental earnings outlook, the realization or removal of the expected catalyst or excessive valuation. No example was more illustrative than one of our long-term holdings Netflix, the DVD and on-line streaming services company. The company hit a major roadblock during the year after its customers reacted negatively to pricing changes. After Netflix reported disappointing subscriber growth for the first time since we began following the stock, we sold our position. We also eliminated Dick’s Sporting Goods, OpenTable and Vertex Pharmaceuticals from the Fund.
During the fiscal year, we closely followed our investment process and purchased what we believed were exceptional growth companies for which our expectations for growth exceeded consensus expectations. To replace the companies that we sold, we added Whole Foods Market, a prominent retailer of natural and organic foods. We also bought baby nutrition product provider Mead Johnson, which has a strong presence in the fast-growing baby formula industry in China. Also, in health care, we purchased Alexion Pharmaceuticals, a company focused on the discovery, development and commercialization of biologics that target severe, rare and ultra-rare diseases. Alexion, which is seeing strong sales from its lead product Soliris®, also raised its earnings guidance and received FDA approval to use its drug for another rare disease.
Nuveen Mid Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) outperformed the Russell Midcap Growth Index and the Lipper classification average over the twelve-month period.
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What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in the common stocks of companies that have market capitalizations between approximately $350 million and $14 billion at the time of purchase. We start by identifying what we believe are exceptional growth companies with open-ended growth prospects, outstanding financial characteristics and solid management teams. From that highly selective group, we invest in companies where our expectations for earnings growth exceed consensus expectations. For each Fund holding, we develop a proprietary growth thesis. When the growth thesis is validated, we hold or buy more; however, when our growth thesis is violated, we sell the holding. Although we made individual position changes during the Fund’s fiscal year, our underlying investment strategy remained consistent.
The Fund’s outperformance during the fiscal year was primarily the result of strong stock selection in three sectors: consumer discretionary, industrials and consumer staples. In consumer discretionary, the Fund continued to benefit from our strategic balance between consumer-oriented holdings that target affluent consumers, who kept spending throughout the recent economic downturn, and those that focus on more value-oriented shoppers. Four stocks performed particularly well, including Ulta Salon, Ralph Lauren, Dollar Tree and lululemon Athletica. Ulta Salon, a specialty retailer of beauty products, has shown an ability to grow rapidly through new store growth and market share gains while improving operating margins. Ralph Lauren, a designer and retailer of higher end apparel and household products, benefited from its continued solid brand presence, margin improvement potential and strong international growth prospects. Discount variety store operator Dollar Tree produced positive earnings per share surprises and strong operating results as its unique business model continued to attract the cash-conscious consumer. Lululemon Athletica, a designer and retailer of yoga-inspired athletic apparel, continued to benefit from strong sales trends among high-end consumers, market share gains and well-controlled inventories. In addition, we believe lululemon still has the potential to significantly grow its number of stores.
In the industrials sector, one of the Fund’s largest holdings Goodrich — a components supplier to the commercial aerospace and defense industries — benefited from an all-cash takeout bid from United Technologies. Goodrich holds an attractive position in the fast-growing airplane replacement part industry, as it is the leading supplier of parts for the newest class of aircraft. The Fund also was rewarded for its position in Kansas City Southern Railway, the only railroad company that falls into our mid-cap market capitalization range. The company, which operates in ten central corridor states and connects the United States to Mexico, performed better than any other U.S. railroad during the period due to strong volumes and solid pricing power.
In consumer staples, the Fund benefited from positions in Whole Foods and Estee Lauder. Whole Foods, the largest natural and organic grocery store chain in the United States, is continuing to benefit from growth in that industry and market share gains on top of that growth. We also believe the company is very early in its growth profile and has the potential to add many more stores. The Fund’s position in cosmetics and fragrance
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company Estee Lauder was also a bright spot in staples. The company — which owns prestige brands including Clinique, Origins and Prescriptives — experienced broad-based, top-line growth and higher margin expansion than forecasted as management cut expenses and high-end consumers continued to spend.
Technology and materials were the only areas that slightly detracted from the Fund’s returns during the period. NetApp, the second largest network storage solutions provider in the United States, was the biggest disappointment. We originally owned the company because it was gaining market share in the ever-growing data analysis and storage industry. However, NetApp began to miss its earnings as rival EMC came out with a new product that caused the company to lose market share. Even though we continued to like this industry, we sold our position in NetApp as it violated our growth thesis mentioned earlier. Also in technology, software company Citrix Systems was an underperformer. Citrix Systems provides server and desktop virtualization, networking, software-as-a-service (SaaS) and cloud computing technologies to businesses. Again, the company’s growth rate did not meet our expectations and we sold the Fund’s position.
Two materials companies, iron ore miner Cliffs Natural Resources and coal producer Walter Energy, were negatively impacted by declining commodity costs as slowing global growth lowered demand from emerging markets like China. Walter Energy, which is the largest U.S. producer of high-quality metallurgical coal, also experienced several operational missteps that caused the company to decrease production guidance five times. We sold the Fund’s positions in both Cliffs Natural Resources and Walter Energy prior to the end of the period.
Along the same line, we eliminated several other stocks from the Fund that violated our growth thesis as they faced current and/or future earnings pressures. In addition to NetApp and Citrix Solutions mentioned above, we also sold technology firms Akamai and Dolby Laboratories. Akamai is a content delivery network provider that helps companies enhance their customers’ web experiences. We expected to see Akamai’s business and margins increase with the movement toward high definition, which dramatically increases the volume over computer networks. However, Akamai appeared to be losing market share as it lost one of its biggest customers. We also sold Dolby Laboratories, which provides audio solutions for a number of electronic devices such as stereos, televisions and computers. We were concerned about the company’s margins due to slowing television sales and a growing shift from desktops to tablets. Tablets often do not include Dolby’s products and, when they do, are not as profitable for the company. Overall, the Fund’s technology weighting declined about 9% over the past year.
Our team is always working to identify franchise growth companies and, as such, we were able to add several new companies to the Fund to replace those that we sold. In consumer discretionary, we purchased premier jeweler Tiffany & Co. and high-performance and casual footwear company Deckers Outdoor. We believe both companies should benefit from margin expansion, new store growth and new products. In the case of Tiffany, the consensus forecast for its earnings is way below our expectations. The company continues to benefit from solid sales in its U.S. and European stores and very strong expansion in Asia, where margins are high. Deckers Outdoor, which makes
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the popular Ugg sheepskin boots and Teva sandals, is broadening its product line and expanding internationally with more direct consumer stores.
Nuveen Small Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell 2000 Growth Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of companies with market capitalizations in the range of the benchmark Russell 2000 Growth Index. The investment process we use seeks to exploit secular trends that we believe will provide an investment tailwind to above-average growth, which should mute the effects of the business cycle over the longer term. Importantly, our process also emphasizes a valuation discipline aimed at finding what we believe are attractive investment opportunities that could benefit from multiple expansion when particular investment catalysts become evident in the marketplace. The Fund’s portfolio typically features investments in high-quality companies with attractive margin profiles, generally healthy balance sheets and prospects for attractive revenue and earnings growth.
While the longer term track record of the Fund remains favorable, results fell short of the benchmark during this reporting period. Early in the fiscal year, investors gravitated toward momentum-oriented growth stocks with seemingly little regard for valuation. Then in the second half, heightened volatility driven by recessionary fears and European debt concerns drove overall equity correlations to all-time highs during the market correction. Over the course of the period, we believe the attractive valuation characteristics of the Fund’s portfolio have not contributed as much to relative performance as they have historically in less volatile investment environments.
Stock selection in the consumer discretionary sector was the most positive contributor to the Fund’s relative performance during the fiscal year, led by the specialty retail group. Solid quarterly results and comparable-store sales reports drove strong performance for Hibbett Sports in sporting goods, Men’s Wearhouse in men’s dress apparel, Penske Automotive Group in automotive sales and Tractor Supply Company in general merchandise. Additionally, J. Crew Group, an apparel and accessories retailer, announced that it would be acquired by a private equity buyer for a 19% premium in November 2010. Finally, the all-terrain vehicle and snowmobile manufacturer, Arctic Cat, generated substantial margin improvements from dealer inventory rationalization and new product introductions that drove shares higher.
Stock selection in the industrial sector was another source of positive relative performance during the year. Results in this group were led by MasTec, a leading telecommunications
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and energy services infrastructure provider. MasTec posted impressive growth in revenue and earnings over the year as its pipeline, electric transmission and wireless communications businesses saw significant growth. Thermon Group, a leading provider of heat-tracing solutions for the energy complex, benefited from strength in its maintenance, repair and overhaul services, an area which is relatively recession resistant, coupled with large projects in its backlog in Russia, the Canadian oil sands and the Arctic.
The largest detractor to relative performance over the past year was stock selection in the health care sector, most notably in the pharmaceuticals and health care services groups. Despite providing investors with strong mid-stage data for its lead compound for ovarian and breast cancer, Nektar Therapeutics’ shares reacted negatively to the company’s decision to develop the drug on its own, which resulted in a dilutive equity raise. HealthSouth, the nation’s largest provider of inpatient rehabilitation services, showed strong results throughout the year; however, payment reform in this category created substantial uncertainties for investors and sent the stock lower. Finally, shares of Gentiva Health Services, a provider of home nursing and hospice services, slid due to proposed payment cuts for home health in conjunction with surprisingly poor hospice occupancy results.
Stock selection in the financial services sector was also a modest drag on relative performance. Shares of KBW, a boutique investment bank focused on banking, research and trading of financial concerns, fell as the company reported disappointing results due to poor investment banking volumes.
The domestic equity market appears to be in a recovery phase following a period of heightened uncertainty created by concerns about the sustainability of the economic recovery, the inability of Congress to sharply reduce deficits and spending, and the potential impacts of the European debt crisis. More recently, the modestly improved outlook for job creation and sporadic signs of spending improvement suggest the economy is poised for a period of muted growth that may accelerate somewhat heading into 2012. As a result, we have slightly increased the economic sensitivity of the portfolio. We are also continuing to seek out stocks and groups that appear to be oversold or that will benefit from new product cycles or secular trends that will dampen the impact of a lower growth environment.
The Fund’s largest overweight position relative to the Russell 2000 Growth Index remains in the information technology sector. In fact, this overweight was increased further in recent months, particularly in the communications equipment and semiconductor-related areas given their favorable valuations. We had positioned the Fund’s portfolio with a lower consumer discretionary weight as a result of waning consumer confidence at the hands of rising food and fuel prices, coupled with uncertainties over federal and state budgets. However, price pressures appear to have subsided somewhat and recent spending data has allowed us to become more constructive on the group. Energy stocks were among the most impacted by this summer’s correction, to the point where some investors were expecting crude oil to fall as low as $70 per barrel. We used this opportunity to add to producers with a focus on domestic oil and liquids-driven growth. We had increased the Fund’s exposure to health care stocks in light of the substantial period of group underperformance and the resulting attractive valuations. However, the U.S. budget debate brought many spending
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concerns to the forefront again and, as a result, we lowered the Fund’s weight in this area. The Fund’s portfolio remains underweight in the financial services, consumer staples and materials sectors given the lack of compelling growth opportunities in light of current valuations.
From time to time, the Fund may use equity futures contracts to help the Fund achieve its objectives. Over this period, long futures contracts were used to manage cash flow activity and implement various tactical market and hedging strategies. These positions served their purpose and were eliminated before the end of the period.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. The potential use of derivative instruments involves a high degree of financial risk, including the risk that the loss on a derivative may be greater than the principal amount invested.
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Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares and Class Y Shares, previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
| Nuveen Investments | 15 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Large Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 8.86% | 4.40% | 3.97% | |||||||||
Class A Shares at maximum Offering Price | 2.62% | 3.18% | 3.35% | |||||||||
Russell 1000 Growth Index* | 9.92% | 3.04% | 3.56% | |||||||||
Lipper Large-Cap Growth Funds Classification Average* | 6.86% | 1.93% | 3.07% | |||||||||
Class B Shares w/o CDSC** | 8.02% | 3.62% | 3.18% | |||||||||
Class B Shares w/CDSC** | 3.02% | 3.45% | 3.18% | |||||||||
Class C Shares | 8.02% | 3.61% | 3.18% | |||||||||
Class R3 Shares | 8.58% | 4.14% | 3.77% | |||||||||
Class I Shares | 9.13% | 4.67% | 4.23% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 4.79% | 3.22% | 3.32% | |||||||||
Class A Shares at maximum Offering Price | -1.24% | 2.00% | 2.71% | |||||||||
Class B Shares w/o CDSC** | 3.98% | 2.45% | 2.54% | |||||||||
Class B Shares w/CDSC** | -1.02% | 2.27% | 2.54% | |||||||||
Class C Shares | 4.00% | 2.45% | 2.54% | |||||||||
Class R3 Shares | 4.54% | 2.96% | 3.12% | |||||||||
Class I Shares | 5.03% | 3.48% | 3.58% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
| Expense Ratios as of Most Recent Prospectus | ||||
| Expense Ratios | ||||
Class A Shares | 1.24% | |||
Class B Shares | 1.99% | |||
Class C Shares | 1.99% | |||
Class R3 Shares | 1.49% | |||
Class I Shares | 0.99% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 17 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Mid Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 11.00% | 4.11% | 8.45% | |||||||||
Class A Shares at maximum Offering Price | 4.63% | 2.89% | 7.81% | |||||||||
Russell Midcap Growth Index* | 10.08% | 3.46% | 6.98% | |||||||||
Lipper Multi-Cap Growth Funds Classification Average* | 6.25% | 2.43% | 4.69% | |||||||||
Class B Shares w/o CDSC** | 10.15% | 3.34% | 7.64% | |||||||||
Class B Shares w/CDSC** | 5.15% | 3.17% | 7.64% | |||||||||
Class C Shares | 10.20% | 3.34% | 7.65% | |||||||||
Class R3 Shares | 10.72% | 3.86% | 8.26% | |||||||||
Class I Shares | 11.30% | 4.38% | 8.72% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 4.21% | 2.37% | 7.77% | |||||||||
Class A Shares at maximum Offering Price | -1.79% | 1.16% | 7.14% | |||||||||
Class B Shares w/o CDSC** | 3.45% | 1.60% | 6.97% | |||||||||
Class B Shares w/CDSC** | -1.55% | 1.44% | 6.97% | |||||||||
Class C Shares | 3.45% | 1.60% | 6.99% | |||||||||
Class R3 Shares | 3.95% | 2.11% | 7.59% | |||||||||
Class I Shares | 4.47% | 2.62% | 8.05% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.29% | |||
Class B Shares | 2.04% | |||
Class C Shares | 2.04% | |||
Class R3 Shares | 1.54% | |||
Class I Shares | 1.04% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 19 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Small Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 7.20% | 2.90% | 5.90% | |||||||||
Class A Shares at maximum Offering Price | 1.04% | 1.69% | 5.27% | |||||||||
Russell 2000 Growth Index* | 9.84% | 2.68% | 6.04% | |||||||||
Lipper Small-Cap Growth Funds Classification Average* | 9.06% | 2.28% | 5.71% | |||||||||
Class B Shares w/o CDSC** | 6.36% | 2.13% | 5.11% | |||||||||
Class B Shares w/CDSC** | 1.36% | 1.96% | 5.11% | |||||||||
Class C Shares | 6.41% | 2.14% | 5.12% | |||||||||
Class R3 Shares | 6.94% | 2.65% | 5.72% | |||||||||
Class I Shares | 7.46% | 3.16% | 6.16% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -2.42% | 1.34% | 5.45% | |||||||||
Class A Shares at maximum Offering Price | -8.05% | 0.15% | 4.83% | |||||||||
Class B Shares w/o CDSC** | -3.15% | 0.58% | 4.66% | |||||||||
Class B Shares w/CDSC** | -7.99% | 0.41% | 4.66% | |||||||||
Class C Shares | -3.18% | 0.59% | 4.67% | |||||||||
Class R3 Shares | -2.69% | 1.09% | 5.27% | |||||||||
Class I Shares | -2.20% | 1.60% | 5.71% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.77% | 1.48% | ||||||
Class B Shares | 2.52% | 2.23% | ||||||
Class C Shares | 2.52% | 2.23% | ||||||
Class R3 Shares | 2.02% | 1.73% | ||||||
Class I Shares | 1.52% | 1.23% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.47%, 2.22%, 2.22%, 1.72% and 1.22%, respectively, for Class A, Class B, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 21 |
Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen Large Cap Growth Opportunities Fund
Portfolio Allocation1
Nuveen Mid Cap Growth Opportunities Fund
Portfolio Allocation1
Nuveen Small Cap Growth Opportunities
Fund
Portfolio Allocation1
| Portfolio Composition1 | ||||
| Information Technology | 31.1% | |||
| Consumer Discretionary | 24.3% | |||
| Industrials | 11.6% | |||
| Consumer Staples | 10.9% | |||
| Energy | 8.2% | |||
| Health Care | 6.8% | |||
| Short-Term Investments | 1.7% | |||
| Other | 5.4% | |||
| Portfolio Composition1 | ||||
| Consumer Discretionary | 26.2% | |||
| Information Technology | 17.6% | |||
| Industrials | 15.2% | |||
| Health Care | 13.2% | |||
| Energy | 9.4% | |||
| Consumer Staples | 6.5% | |||
| Financials | 5.3% | |||
| Short-Term Investments | 1.2% | |||
| Other | 5.4% | |||
| Portfolio Composition1 | ||||
| Information Technology | 30.0% | |||
| Health Care | 19.3% | |||
| Industrials | 18.1% | |||
| Consumer Discretionary | 15.4% | |||
| Energy | 8.7% | |||
| Financials | 5.5% | |||
| Short-Term Investments | 2.0% | |||
| Other | 1.0% | |||
| Top Five Common Stock Holdings2 | ||||
| Apple | 8.0% | |||
MasterCard, Class A | 2.7% | |||
Amazon.com | 2.7% | |||
QUALCOMM | 2.6% | |||
Oracle | 2.6% | |||
| Top Five Common Stock Holdings2 | ||||
| Dollar Tree | 2.5% | |||
| Teradata | 2.3% | |||
| Wynn Resorts | 2.2% | |||
FMC Technologies | 2.2% | |||
| AmerisourceBergen | 2.0% | |||
| Top Five Common Stock Holdings2 | ||||
| VideoPropulsion | 2.1% | |||
MasTec | 2.1% | |||
ADTRAN | 2.1% | |||
Semtech | 2.0% | |||
Quest Software | 1.7% | |||
| 1 | As a percentage of total investments (excluding investments purchased with collateral from securities lending) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 22 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Growth Opportunities Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 923.90 | $ | 920.00 | $ | 920.00 | $ | 922.50 | $ | 925.10 | $ | 1,019.21 | $ | 1,015.38 | $ | 1,015.48 | $ | 1,018.00 | $ | 1,020.47 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 5.77 | $ | 9.44 | $ | 9.34 | $ | 6.93 | $ | 4.56 | $ | 6.06 | $ | 9.91 | $ | 9.80 | $ | 7.27 | $ | 4.79 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.19%, 1.95%, 1.93%, 1.43% and ..94% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Mid Cap Growth Opportunities Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 892.30 | $ | 888.90 | $ | 889.20 | $ | 891.30 | $ | 893.60 | $ | 1,018.75 | $ | 1,014.92 | $ | 1,014.97 | $ | 1,017.49 | $ | 1,020.01 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.11 | $ | 9.71 | $ | 9.67 | $ | 7.29 | $ | 4.92 | $ | 6.51 | $ | 10.36 | $ | 10.31 | $ | 7.78 | $ | 5.24 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.28%, 2.04%, 2.03%, 1.53% and 1.03% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Growth Opportunities Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 861.20 | $ | 857.70 | $ | 857.80 | $ | 860.10 | $ | 862.30 | $ | 1,017.80 | $ | 1,014.01 | $ | 1,014.01 | $ | 1,016.53 | $ | 1,019.06 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.90 | $ | 10.39 | $ | 10.40 | $ | 8.06 | $ | 5.73 | $ | 7.48 | $ | 11.27 | $ | 11.27 | $ | 8.74 | $ | 6.21 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.47%, 2.22%, 2.22%, 1.72% and 1.22% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 23 |
Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Nuveen Large Cap Growth Opportunities Fund (formerly First American Large Cap Growth Opportunities Fund)
Nuveen Mid Cap Growth Opportunities Fund (formerly First American Mid Cap Growth Opportunities Fund)
Nuveen Small Cap Growth Opportunities Fund (formerly First American Small Cap Growth Opportunities Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Nuveen Large Cap Growth Opportunities Fund (formerly First American Large Cap Growth Opportunities Fund), Nuveen Mid Cap Growth Opportunities Fund (formerly First American Mid Cap Growth Opportunities Fund), and Nuveen Small Cap Growth Opportunities Fund (formerly First American Small Cap Growth Opportunities Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the ”Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen Large Cap Growth Opportunities Fund (formerly First American Large Cap Growth Opportunities Fund), Nuveen Mid Cap Growth Opportunities Fund (formerly First American Mid Cap Growth Opportunities Fund), and Nuveen Small Cap Growth Opportunities Fund (formerly First American Small Cap Growth Opportunities Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| 24 | Nuveen Investments |
Nuveen Large Cap Growth Opportunities Fund
(formerly known as First American Large Cap Growth Opportunities Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 99.4% | ||||||||||||||
Consumer Discretionary – 24.6% | ||||||||||||||
| 67,496 | Amazon.com q — | $ | 14,411,071 | |||||||||||
| 111,479 | BorgWarner q — | 8,527,029 | ||||||||||||
| 176,417 | DIRECTV, Class A q — | 8,019,917 | ||||||||||||
| 129,592 | Dollar Tree — | 10,362,176 | ||||||||||||
| 149,690 | Gentex q | 4,508,663 | ||||||||||||
| 133,716 | lululemon Athletica q — | 7,552,280 | ||||||||||||
| 981,036 | Prada — | 4,918,566 | ||||||||||||
| 21,098 | Priceline.com q — | 10,711,876 | ||||||||||||
| 67,688 | Ralph Lauren q | 10,748,177 | ||||||||||||
| 283,839 | Starbucks | 12,017,743 | ||||||||||||
| 113,244 | Tiffany & Company q | 9,028,944 | ||||||||||||
| 128,807 | TJX q | 7,590,596 | ||||||||||||
| 86,218 | Tupperware Brands | 4,874,766 | ||||||||||||
| 79,346 | Wynn Resorts | 10,537,149 | ||||||||||||
| 142,021 | Yum! Brands | 7,608,065 | ||||||||||||
Total Consumer Discretionary | 131,417,018 | |||||||||||||
Consumer Staples – 11.0% | ||||||||||||||
| 241,949 | Arcos Dorados Holdings, Class A q | 6,796,348 | ||||||||||||
| 125,876 | Coca-Cola | 8,599,848 | ||||||||||||
| 128,758 | Costco Wholesale | 10,719,104 | ||||||||||||
| 90,727 | Estee Lauder, Class A q | 8,932,073 | ||||||||||||
| 58,267 | Hansen Natural — | 5,191,007 | ||||||||||||
| 106,547 | Mead Johnson Nutrition | 7,655,402 | ||||||||||||
| 150,901 | Whole Foods Market q | 10,882,980 | ||||||||||||
Total Consumer Staples | 58,776,762 | |||||||||||||
Energy – 8.3% | ||||||||||||||
| 31,792 | CARBO Ceramics | 4,318,943 | ||||||||||||
| 103,665 | Exxon Mobil q | 8,095,200 | ||||||||||||
| 276,885 | Halliburton | 10,344,423 | ||||||||||||
| 79,759 | National Oilwell Varco q | 5,689,209 | ||||||||||||
| 54,592 | Pioneer Natural Resources q | 4,580,269 | ||||||||||||
| 77,121 | Schlumberger | 5,666,080 | ||||||||||||
| 65,948 | SM Energy | 5,467,749 | ||||||||||||
Total Energy | 44,161,873 | |||||||||||||
Health Care – 6.9% | ||||||||||||||
| 93,046 | Alexion Pharmaceuticals — | 6,281,535 | ||||||||||||
| 126,421 | Allergan q | 10,634,535 | ||||||||||||
| 114,761 | Cerner q — | 7,279,290 | ||||||||||||
| 66,514 | Edwards Lifesciences q — | 5,016,486 | ||||||||||||
| 82,341 | Perrigo q | 7,433,746 | ||||||||||||
Total Health Care | 36,645,592 | |||||||||||||
Industrials – 11.7% | ||||||||||||||
| 60,125 | C.H. Robinson Worldwide q | 4,174,479 | ||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments (Unaudited)
Nuveen Large Cap Growth Opportunities Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 135,010 | Cummins | $ | 13,424,044 | |||||||||||
| 201,836 | Danaher q | 9,758,771 | ||||||||||||
| 59,924 | Joy Global | 5,225,373 | ||||||||||||
| 68,148 | Precision Castparts q | 11,118,346 | ||||||||||||
| 151,873 | United Technologies q | 11,843,056 | ||||||||||||
| 42,071 | W.W. Grainger q | 7,207,183 | ||||||||||||
Total Industrials | 62,751,252 | |||||||||||||
Information Technology – 31.4% | ||||||||||||||
| 115,011 | Accenture, Class A q | 6,930,563 | ||||||||||||
| 104,505 | Apple — | 42,301,534 | ||||||||||||
| 36,562 | Baidu – ADR q — | 5,125,261 | ||||||||||||
| 302,392 | EMC q — | 7,411,628 | ||||||||||||
| 20,553 | Google, Class A — | 12,180,530 | ||||||||||||
| 55,664 | IBM q | 10,277,244 | ||||||||||||
| 41,770 | MasterCard, Class A | 14,504,215 | ||||||||||||
| 415,532 | Oracle | 13,616,984 | ||||||||||||
| 269,823 | QUALCOMM | 13,922,867 | ||||||||||||
| 120,222 | Red Hat q — | 5,969,022 | ||||||||||||
| 61,047 | Salesforce.com q — | 8,129,629 | ||||||||||||
| 158,697 | Teradata q — | 9,467,863 | ||||||||||||
| 101,448 | Visa, Class A q | 9,461,040 | ||||||||||||
| 87,543 | VMware, Class A — | 8,557,328 | ||||||||||||
Total Information Technology | 167,855,708 | |||||||||||||
Materials – 3.2% | ||||||||||||||
| 202,478 | Freeport-McMoRan Copper & Gold | 8,151,765 | ||||||||||||
| 126,559 | Monsanto q | 9,207,167 | ||||||||||||
Total Materials | 17,358,932 | |||||||||||||
Telecommunication Services – 2.3% | ||||||||||||||
| 220,091 | American Tower, Class A — | 12,127,014 | ||||||||||||
Total Common Stocks (cost $418,466,426) | 531,094,151 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 36.9% | ||||||||||||||
Money Market Funds – 36.9% | ||||||||||||||
| 197,054,409 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 197,054,409 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $197,054,409) | 197,054,409 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.7% | ||||||||||||||
Money Market Funds – 1.7% | ||||||||||||||
| 8,919,647 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 8,919,647 | |||||||||||
Total Short-Term Investments (cost $8,919,647) | 8,919,647 | |||||||||||||
Total Investments (cost $624,440,482) – 138.0% | 737,068,207 | |||||||||||||
Other Assets Less Liabilities – (38.0)% | (202,900,333) | |||||||||||||
Net Assets – 100.0% | $ | 534,167,874 | ||||||||||||
| 26 | Nuveen Investments |
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
| Nuveen Investments | 27 |
Portfolio of Investments
Nuveen Mid Cap Growth Opportunities Fund
(formerly known as First American Mid Cap Growth Opportunities Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 99.7% | ||||||||||||||
Consumer Discretionary – 26.4% | ||||||||||||||
| 198,968 | Abercrombie & Fitch, Class A q | $ | 14,803,219 | |||||||||||
| 617,150 | Arcos Dorados Holdings, Class A q | 14,441,310 | ||||||||||||
| 211,638 | BorgWarner q — | 16,188,191 | ||||||||||||
| 47,132 | Chipotle Mexican Grill, Class A q — | 15,842,008 | ||||||||||||
| 114,881 | Deckers Outdoor — | 13,238,886 | ||||||||||||
| 316,263 | Dick’s Sporting Goods — | 12,362,721 | ||||||||||||
| 411,828 | Discovery Communications, Class A q — | 17,898,045 | ||||||||||||
| 332,113 | Dollar Tree — | 26,555,755 | ||||||||||||
| 404,143 | Gentex q | 12,172,787 | ||||||||||||
| 165,037 | lululemon Athletica q — | 9,321,290 | ||||||||||||
| 2,306,783 | Prada — | 11,565,390 | ||||||||||||
| 38,312 | Priceline.com q — | 19,451,769 | ||||||||||||
| 116,006 | Ralph Lauren q | 18,420,593 | ||||||||||||
| 216,758 | Tiffany & Company q | 17,282,115 | ||||||||||||
| 268,576 | Tupperware Brands | 15,185,287 | ||||||||||||
| 178,439 | Ulta Salon, Cosmetics & Fragrance q — | 12,007,160 | ||||||||||||
| 170,083 | Weight Watchers International q | 12,691,593 | ||||||||||||
| 176,117 | Wynn Resorts | 23,388,338 | ||||||||||||
Total Consumer Discretionary | 282,816,457 | |||||||||||||
Consumer Staples – 6.5% | ||||||||||||||
| 366,019 | ARM Holdings q | 10,281,474 | ||||||||||||
| 142,712 | Estee Lauder, Class A q | 14,049,996 | ||||||||||||
| 117,609 | Hansen Natural — | 10,477,786 | ||||||||||||
| 213,163 | Mead Johnson Nutrition | 15,315,762 | ||||||||||||
| 278,635 | Whole Foods Market q — | 20,095,156 | ||||||||||||
Total Consumer Staples | 70,220,174 | |||||||||||||
Energy – 9.5% | ||||||||||||||
| 328,882 | Bill Barrett q — | 13,681,491 | ||||||||||||
| 113,899 | CARBO Ceramics q | 15,473,179 | ||||||||||||
| 206,786 | Concho Resources q — | 19,586,770 | ||||||||||||
| 133,693 | Core Laboratories q | 14,473,604 | ||||||||||||
| 513,537 | FMC Technologies q — | 23,016,729 | ||||||||||||
| 184,934 | SM Energy | 15,332,878 | ||||||||||||
Total Energy | 101,564,651 | |||||||||||||
Financials – 5.4% | ||||||||||||||
| 140,307 | Affiliated Managers Group — | 12,993,831 | ||||||||||||
| 836,965 | Blackstone Group | 12,311,755 | ||||||||||||
| 572,550 | Discover Financial Services | 13,489,278 | ||||||||||||
| 145,492 | IntercontinentalExchange q — | 18,896,501 | ||||||||||||
Total Financials | 57,691,365 | |||||||||||||
Health Care – 13.3% | ||||||||||||||
| 278,153 | Alexion Pharmaceuticals q — | 18,778,109 | ||||||||||||
| 534,783 | AmerisourceBergen q | 21,819,146 | ||||||||||||
| 261,751 | Catalyst Health Solutions q — | 14,388,453 | ||||||||||||
| 28 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 300,395 | Cerner q — | $ | 19,054,055 | |||||||||||
| 97,995 | Edwards Lifesciences — | 7,390,783 | ||||||||||||
| 213,018 | IDEXX Laboratories q — | 15,335,166 | ||||||||||||
| 190,926 | Perrigo | 17,236,799 | ||||||||||||
| 413,580 | Valeant Pharmaceuticals International q | 16,361,225 | ||||||||||||
| 314,431 | Vertex Pharmaceuticals q — | 12,448,323 | ||||||||||||
Total Health Care | 142,812,059 | |||||||||||||
Industrials – 15.3% | ||||||||||||||
| 402,009 | AMETEK | 15,887,396 | ||||||||||||
| 124,477 | C.H. Robinson Worldwide q | 8,642,438 | ||||||||||||
| 160,760 | Cummins | 15,984,367 | ||||||||||||
| 471,148 | Hexcel q — | 11,642,067 | ||||||||||||
| 287,904 | Kansas City Southern q — | 18,186,896 | ||||||||||||
| 167,440 | MSC Industrial Direct, Class A | 11,387,594 | ||||||||||||
| 262,735 | Polypore International — | 13,780,451 | ||||||||||||
| 40,490 | Precision Castparts q | 6,605,943 | ||||||||||||
| 214,856 | Roper Industries | 17,424,822 | ||||||||||||
| 155,171 | TransDigm Group — | 14,573,660 | ||||||||||||
| 355,346 | Verisk Analytics, Class A — | 12,490,412 | ||||||||||||
| 102,666 | W.W. Grainger | 17,587,712 | ||||||||||||
Total Industrials | 164,193,758 | |||||||||||||
Information Technology – 17.8% | ||||||||||||||
| 205,324 | Altera q | 7,785,886 | ||||||||||||
| 283,750 | ANSYS q — | 15,424,650 | ||||||||||||
| 466,386 | Avago Technologies | 15,749,855 | ||||||||||||
| 316,015 | Check Point Software Technologies q — | 18,211,944 | ||||||||||||
| 566,867 | Electronic Arts — | 13,236,344 | ||||||||||||
| 79,926 | F5 Networks — | 8,308,308 | ||||||||||||
| 274,786 | Informatica — | 12,502,763 | ||||||||||||
| 63,917 | LinkedIn, Class A q — | 5,746,138 | ||||||||||||
| 221,064 | Rackspace Hosting q — | 9,149,839 | ||||||||||||
| 374,453 | Red Hat q — | 18,591,591 | ||||||||||||
| 146,617 | Rovi q — | 7,263,406 | ||||||||||||
| 68,062 | Salesforce.com q — | 9,063,817 | ||||||||||||
| 327,091 | SuccessFactors q — | 8,733,330 | ||||||||||||
| 420,628 | Teradata q — | 25,094,667 | ||||||||||||
| 368,852 | VeriFone Holdings q — | 15,569,243 | ||||||||||||
Total Information Technology | 190,431,781 | |||||||||||||
Materials – 4.1% | ||||||||||||||
| 94,738 | Agrium — | 7,795,990 | ||||||||||||
| 283,720 | Albemarle | 15,119,439 | ||||||||||||
| 383,580 | Ecolab q | 20,651,947 | ||||||||||||
Total Materials | 43,567,376 | |||||||||||||
Telecommunication Services – 1.4% | ||||||||||||||
| 400,505 | SBA Communications, Class A q — | 15,255,236 | ||||||||||||
Total Common Stocks (cost $873,736,997) | 1,068,552,857 | |||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments (Unaudited)
Nuveen Mid Cap Growth Opportunities Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 36.7% | ||||||||||||||
Money Market Funds – 36.7% | ||||||||||||||
| 393,152,479 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 393,152,479 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $393,152,479) | 393,152,479 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.2% | ||||||||||||||
Money Market Funds – 1.2% | ||||||||||||||
| 12,621,908 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 12,621,908 | |||||||||||
Total Short-Term Investments (cost $12,621,908) | 12,621,908 | |||||||||||||
Total Investments (cost $1,279,511,384) – 137.6% | 1,474,327,244 | |||||||||||||
Other Assets Less Liabilities – (37.6)% | (403,076,570) | |||||||||||||
Net Assets – 100.0% | $ | 1,071,250,674 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
See accompanying notes to financial statements.
| 30 | Nuveen Investments |
Portfolio of Investments
Nuveen Small Cap Growth Opportunities Fund
(formerly known as First American Small Cap Growth Opportunities Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 97.6% | ||||||||||||||
Consumer Discretionary – 15.3% | ||||||||||||||
| 47,417 | Arctic Cat q — | $ | 963,039 | |||||||||||
| 58,533 | Ascena Retail Group q — | 1,691,604 | ||||||||||||
| 29,244 | Coinstar — | 1,396,109 | ||||||||||||
| 82,190 | Crocs — | 1,452,297 | ||||||||||||
| 34,761 | Hibbett Sports q — | 1,431,806 | ||||||||||||
| 56,956 | Men’s Wearhouse | 1,758,801 | ||||||||||||
| 63,226 | Penske Automotive Group q | 1,289,178 | ||||||||||||
| 39,906 | Sotheby’s | 1,405,489 | ||||||||||||
| 111,384 | Texas Roadhouse q — | 1,596,133 | ||||||||||||
| 40,077 | Wolverine World Wide | 1,520,121 | ||||||||||||
| 72,862 | Zumiez q — | 1,657,610 | ||||||||||||
Total Consumer Discretionary | 16,162,187 | |||||||||||||
Energy – 8.7% | ||||||||||||||
| 35,626 | Berry Petroleum, Class A q | 1,230,878 | ||||||||||||
| 61,816 | Carrizo Oil & Gas q — | 1,681,395 | ||||||||||||
| 24,410 | Dril-Quip q — | 1,589,091 | ||||||||||||
| 63,147 | Energy XXI q — | 1,854,627 | ||||||||||||
| 17,734 | Lufkin Industries q | 1,047,902 | ||||||||||||
| 60,031 | Oasis Petroleum q — | 1,761,310 | ||||||||||||
Total Energy | 9,165,203 | |||||||||||||
Financials – 5.5% | ||||||||||||||
| 50,581 | Evercore Partners, Class A q | 1,387,943 | ||||||||||||
| 57,828 | EZCORP, Class A — | 1,606,462 | ||||||||||||
| 49,031 | Home Bancshares | 1,149,777 | ||||||||||||
| 51,034 | Stifel Financial q — | 1,626,453 | ||||||||||||
Total Financials | 5,770,635 | |||||||||||||
Health Care – 19.3% | ||||||||||||||
| 78,842 | Alkermes q — | 1,378,947 | ||||||||||||
| 43,246 | ARIAD Pharmaceuticals q — | 502,951 | ||||||||||||
| 17,260 | athenahealth — | 913,226 | ||||||||||||
| 25,842 | Cepheid q — | 927,211 | ||||||||||||
| 34,167 | Cubist Pharmaceuticals q — | 1,291,854 | ||||||||||||
| 60,163 | Endocyte q — | 584,183 | ||||||||||||
| 18,388 | Haemonetics — | 1,120,749 | ||||||||||||
| 115,200 | Halozyme Therapeutics q — | 971,136 | ||||||||||||
| 96,223 | HealthSouth q — | 1,699,298 | ||||||||||||
| 46,252 | HMS Holdings — | 1,130,399 | ||||||||||||
| 38,520 | ICU Medical — | 1,514,221 | ||||||||||||
| 65,658 | Impax Laboratories q — | 1,241,593 | ||||||||||||
| 44,806 | Incyte q — | 616,979 | ||||||||||||
| 6,362 | Medivation — | 109,299 | ||||||||||||
| 12,302 | Onyx Pharmaceuticals — | 503,521 | ||||||||||||
| 57,760 | PSS World Medical q — | 1,285,160 | ||||||||||||
| 50,407 | Salix Pharmaceuticals — | 1,726,692 | ||||||||||||
| Nuveen Investments | 31 |
Portfolio of Investments (Unaudited)
Nuveen Small Cap Growth Opportunities Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Healthcare (continued) | ||||||||||||||
| 30,679 | Thoratec q — | $ | 1,120,090 | |||||||||||
| 72,797 | Tornier NV q — | 1,691,802 | ||||||||||||
Total Health Care | 20,329,311 | |||||||||||||
Industrials – 17.9% | ||||||||||||||
| 63,507 | Actuant, Class A q | 1,428,907 | ||||||||||||
| 122,860 | Altra Holdings q — | 1,806,042 | ||||||||||||
| 160,872 | CBIZ q — | 1,018,320 | ||||||||||||
| 18,317 | Clean Harbors q — | 1,067,331 | ||||||||||||
| 111,516 | Interface, Class A | 1,454,169 | ||||||||||||
| 43,910 | Kaydon q | 1,381,409 | ||||||||||||
| 101,083 | MasTec q — | 2,185,414 | ||||||||||||
| 37,458 | Old Dominion Freight Line q — | 1,369,839 | ||||||||||||
| 94,513 | Orbital Sciences q — | 1,461,171 | ||||||||||||
| 86,278 | Thermon Group Holdings q — | 1,370,095 | ||||||||||||
| 91,378 | TrueBlue — | 1,208,017 | ||||||||||||
| 67,914 | United Rentals q — | 1,589,867 | ||||||||||||
| 46,356 | Woodward | 1,570,541 | ||||||||||||
Total Industrials | 18,911,122 | |||||||||||||
Information Technology – 29.9% | ||||||||||||||
| 63,821 | ADTRAN q | 2,144,386 | ||||||||||||
| 67,149 | Advent Software q — | 1,839,883 | ||||||||||||
| 43,373 | Aruba Networks q — | 1,027,506 | ||||||||||||
| 7,869 | InterDigital q | 341,908 | ||||||||||||
| 78,925 | International Rectifier q — | 1,917,088 | ||||||||||||
| 128,078 | Ixia q — | 1,451,124 | ||||||||||||
| 37,497 | MICROS Systems — | 1,845,602 | ||||||||||||
| 48,231 | National Instruments q | 1,288,250 | ||||||||||||
| 91,958 | OmniVision Technologies q — | 1,499,835 | ||||||||||||
| 89,977 | Perficient — | 857,481 | ||||||||||||
| 39,434 | Plantronics q | 1,317,490 | ||||||||||||
| 280,313 | PMC-Sierra — | 1,777,185 | ||||||||||||
| 100,906 | Polycom — | 1,667,976 | ||||||||||||
| 117,107 | Quest Software q — | 2,059,912 | ||||||||||||
| 164,886 | RF Micro Devices q — | 1,210,263 | ||||||||||||
| 86,746 | Semtech — | 2,118,337 | ||||||||||||
| 61,191 | Solarwinds — | 1,765,972 | ||||||||||||
| 39,279 | Sourcefire q — | 1,082,137 | ||||||||||||
| 47,940 | Taleo, Class A q — | 1,553,256 | ||||||||||||
| 330,907 | Tellabs | 1,432,827 | ||||||||||||
| 591,081 | VideoPropulsion — | — | ||||||||||||
| 62,047 | Vocus — | 1,264,518 | ||||||||||||
Total Information Technology | 31,462,936 | |||||||||||||
Materials – 1.0% | ||||||||||||||
| 68,067 | Solutia — | 1,106,089 | ||||||||||||
Total Common Stocks (cost $95,348,209) | 102,907,483 | |||||||||||||
| 32 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 49.3% | ||||||||||||||
Money Market Funds – 49.3% | ||||||||||||||
| 52,004,156 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 52,004,156 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $52,004,156) | 52,004,156 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 2.0% | ||||||||||||||
Money Market Funds – 2.0% | ||||||||||||||
| 2,057,830 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 2,057,830 | |||||||||||
Total Short-Term Investments (cost $2,057,830) | 2,057,830 | |||||||||||||
Total Investments (cost $149,410,195) – 148.9% | 156,969,469 | |||||||||||||
Other Assets Less Liabilities – (48.9)% | (51,553,016) | |||||||||||||
Net Assets – 100.0% | $ | 105,416,453 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
 | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
See accompanying notes to financial statements.
| Nuveen Investments | 33 |
Statement of Assets & Liabilities
October 31, 2011 (all dollars and shares are rounded to thousands (000), except for per share data)
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Assets | ||||||||||||
Investments, at value (cost $427,386, $886,359 and $97,406, respectively) | $ | 540,014 | $ | 1,081,175 | $ | 104,965 | ||||||
Investment purchased with collateral from securities lending (at cost, which approximates value) | 197,054 | 393,152 | 52,004 | |||||||||
Receivables: | ||||||||||||
Dividends | 199 | 153 | 11 | |||||||||
Due from broker | 16 | 64 | 4 | |||||||||
Investments sold | 9,039 | 16,248 | 1,955 | |||||||||
Shares sold | 2,078 | 1,826 | 278 | |||||||||
Other assets | 40 | 52 | 53 | |||||||||
Total assets | 748,440 | 1,492,670 | 159,270 | |||||||||
Liabilities | ||||||||||||
Payables: | ||||||||||||
Collateral from securities lending program | 197,054 | 393,152 | 52,004 | |||||||||
Investments purchased | 15,669 | 25,861 | 1,348 | |||||||||
Shares redeemed | 900 | 884 | 143 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 379 | 931 | 207 | |||||||||
12b-1 distribution and service fees | 27 | 87 | 11 | |||||||||
Other | 243 | 504 | 141 | |||||||||
Total liabilities | 214,272 | 421,419 | 53,854 | |||||||||
Net assets | $ | 534,168 | $ | 1,071,251 | $ | 105,416 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 84,875 | $ | 289,038 | $ | 36,188 | ||||||
Shares outstanding | 2,579 | 6,988 | 1,773 | |||||||||
Net asset value per share | $ | 32.92 | $ | 41.36 | $ | 20.41 | ||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 34.93 | $ | 43.88 | $ | 21.66 | ||||||
Class B Shares | ||||||||||||
Net assets | $ | 2,411 | $ | 4,127 | $ | 1,482 | ||||||
Shares outstanding | 81 | 115 | 84 | |||||||||
Net asset value and offering price per share | $ | 29.90 | $ | 35.93 | $ | 17.72 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 7,832 | $ | 14,314 | $ | 1,546 | ||||||
Shares outstanding | 256 | 380 | 83 | |||||||||
Net asset value and offering price per share | $ | 30.57 | $ | 37.70 | $ | 18.58 | ||||||
Class R3 Shares(1) | ||||||||||||
Net assets | $ | 3,431 | $ | 34,929 | $ | 2,334 | ||||||
Shares outstanding | 106 | 862 | 116 | |||||||||
Net asset value and offering price per share | $ | 32.39 | $ | 40.50 | $ | 20.04 | ||||||
Class I Shares(1) | ||||||||||||
Net assets | $ | 435,619 | $ | 728,843 | $ | 63,866 | ||||||
Shares outstanding | 12,743 | 16,336 | 2,898 | |||||||||
Net asset value and offering price per share | $ | 34.19 | $ | 44.62 | $ | 22.04 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 406,366 | $ | 838,039 | $ | 97,819 | ||||||
Undistributed (Over-distribution of) net investment income | (15 | ) | (19 | ) | (11 | ) | ||||||
Accumulated net realized gain (loss) | 15,189 | 38,415 | 49 | |||||||||
Net unrealized appreciation (depreciation) | 112,628 | 194,816 | 7,559 | |||||||||
Net assets | $ | 534,168 | $ | 1,071,251 | $ | 105,416 | ||||||
Authorized shares | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | �� | $ | 0.0001 | $ | 0.0001 | |||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 34 | Nuveen Investments |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income from unaffiliated investments (net of foreign tax withheld of $–, $114 and $–, respectively) | $ | 4,195 | $ | 8,140 | $ | 463 | ||||||
Interest income from affiliated investments(1) | 1 | 1 | 1 | |||||||||
Securities lending income | 144 | 727 | 46 | |||||||||
Total investment income | 4,340 | 8,868 | 510 | |||||||||
Expenses | ||||||||||||
Management fees | 4,477 | 9,571 | 1,385 | |||||||||
12b-1 service fees – Class A | 199 | 731 | 103 | |||||||||
12b-1 distribution and service fees – Class B | 30 | 52 | 20 | |||||||||
12b-1 distribution and service fees – Class C | 56 | 146 | 17 | |||||||||
12b-1 distribution and service fees – Class R3(2) | 10 | 170 | 13 | |||||||||
Administration fees(1) | 229 | 492 | 71 | |||||||||
Shareholders’ servicing agent fees and expenses | 320 | 960 | 161 | |||||||||
Custodian’s fees and expenses | 94 | 168 | 30 | |||||||||
Directors’ fees and expenses | 16 | 29 | 7 | |||||||||
Professional fees | 31 | 31 | 31 | |||||||||
Shareholders’ reports – printing and mailing expenses | 81 | 142 | 38 | |||||||||
Federal and state registration fees | 77 | 96 | 80 | |||||||||
Other expenses | 20 | 30 | 11 | |||||||||
Total expenses before expense reimbursement | 5,640 | 12,618 | 1,967 | |||||||||
Expense reimbursement | (1 | ) | (4 | ) | (122 | ) | ||||||
Net expenses | 5,639 | 12,614 | 1,845 | |||||||||
Net investment income (loss) | (1,299 | ) | (3,746 | ) | (1,335 | ) | ||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | 60,485 | 138,058 | 16,904 | |||||||||
Futures contracts | — | — | 662 | |||||||||
Redemptions in-kind | 29,396 | 97,107 | 10,196 | |||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (34,390 | ) | (91,118 | ) | (9,343 | ) | ||||||
Net realized and unrealized gain (loss) | 55,491 | 144,047 | 18,419 | |||||||||
Net increase (decrease) in net assets from operations | $ | 54,192 | $ | 140,301 | $ | 17,084 | ||||||
| (1) | For the period November 1, 2010 through December 31, 2010. |
| (2) | Effective January 18, 2011, Class R Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares. |
See accompanying notes to financial statements.
| Nuveen Investments | 35 |
Statement of Changes in Net Assets (all dollars are rounded to thousands (000))
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | (1,299 | ) | $ | (814 | ) | $ | (3,746 | ) | $ | (4,973 | ) | $ | (1,335 | ) | $ | (1,495 | ) | ||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments and foreign currency | 60,485 | 70,540 | 138,058 | 195,722 | 16,904 | 32,333 | ||||||||||||||||||
Futures contracts | — | — | — | — | 662 | — | ||||||||||||||||||
Redemptions in-kind | 29,396 | — | 97,107 | — | 10,196 | — | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (34,390 | ) | 61,995 | (91,118 | ) | 129,355 | (9,343 | ) | 11,747 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 54,192 | 131,721 | 140,301 | 320,104 | 17,084 | 42,585 | ||||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||||||
From net investment income: | ||||||||||||||||||||||||
Class A | — | (112 | ) | — | — | — | — | |||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class R3(1) | — | — | — | — | — | — | ||||||||||||||||||
Class I(1) | — | (1,994 | ) | — | — | — | — | |||||||||||||||||
Decrease in net assets from distributions to shareholders | — | (2,106 | ) | — | — | — | — | |||||||||||||||||
Fund Share Transactions | ||||||||||||||||||||||||
Proceeds from sale of shares | 117,946 | 63,672 | 279,658 | 193,095 | 29,550 | 42,064 | ||||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | — | 889 | — | — | — | — | ||||||||||||||||||
| 117,946 | 64,561 | 279,658 | 193,095 | 29,550 | 42,064 | |||||||||||||||||||
Cost of shares redeemed | (172,880 | ) | (121,837 | ) | (348,970 | ) | (378,326 | ) | (81,538 | ) | (36,524 | ) | ||||||||||||
Cost of redemptions in-kind | (86,539 | ) | — | (320,657 | ) | — | (46,265 | ) | — | |||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (141,473 | ) | (57,276 | ) | (389,969 | ) | (185,231 | ) | (98,253 | ) | 5,540 | |||||||||||||
Net increase (decrease) in net assets | (87,281 | ) | 72,339 | (249,668 | ) | 134,873 | (81,169 | ) | 48,125 | |||||||||||||||
Net assets at the beginning of period | 621,449 | 549,110 | 1,320,919 | 1,186,046 | 186,585 | 138,460 | ||||||||||||||||||
Net assets at the end of period | $ | 534,168 | $ | 621,449 | $ | 1,071,251 | $ | 1,320,919 | $ | 105,416 | $ | 186,585 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (15 | ) | $ | (13 | ) | $ | (19 | ) | $ | (15 | ) | $ | (11 | ) | $ | (9 | ) | ||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 36 | Nuveen Investments |
Financial Highlights
| Nuveen Investments | 37 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| LARGE CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||
2011 | $ | 30.24 | $ | (.15 | ) | $ | 2.83 | $ | 2.68 | $ | — | $ | — | $ | — | $ | 32.92 | |||||||||||||||
2010 | 24.23 | (.09 | ) | 6.15 | 6.06 | (.05 | ) | — | (.05 | ) | 30.24 | |||||||||||||||||||||
2009 | 21.52 | .05 | 2.68 | 2.73 | (.02 | ) | — | (.02 | ) | 24.23 | ||||||||||||||||||||||
2008 | 36.27 | .02 | (11.65 | ) | (11.63 | ) | — | (3.12 | ) | (3.12 | ) | 21.52 | ||||||||||||||||||||
2007 | 29.58 | (.05 | ) | 7.08 | 7.03 | — | (.34 | ) | (.34 | ) | 36.27 | |||||||||||||||||||||
Class B (3/99) |
| |||||||||||||||||||||||||||||||
2011 | 27.68 | (.36 | ) | 2.58 | 2.22 | — | — | — | 29.90 | |||||||||||||||||||||||
2010 | 22.31 | (.26 | ) | 5.63 | 5.37 | — | — | — | 27.68 | |||||||||||||||||||||||
2009 | 19.93 | (.09 | ) | 2.47 | 2.38 | — | — | — | 22.31 | |||||||||||||||||||||||
2008 | 34.08 | (.19 | ) | (10.84 | ) | (11.03 | ) | — | (3.12 | ) | (3.12 | ) | 19.93 | |||||||||||||||||||
2007 | 28.01 | (.27 | ) | 6.68 | 6.41 | — | (.34 | ) | (.34 | ) | 34.08 | |||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||
2011 | 28.30 | (.37 | ) | 2.64 | 2.27 | — | — | — | 30.57 | |||||||||||||||||||||||
2010 | 22.81 | (.27 | ) | 5.76 | 5.49 | — | — | — | 28.30 | |||||||||||||||||||||||
2009 | 20.38 | (.10 | ) | 2.53 | 2.43 | — | — | — | 22.81 | |||||||||||||||||||||||
2008 | 34.77 | (.19 | ) | (11.08 | ) | (11.27 | ) | — | (3.12 | ) | (3.12 | ) | 20.38 | |||||||||||||||||||
2007 | 28.58 | (.28 | ) | 6.81 | 6.53 | — | (.34 | ) | (.34 | ) | 34.77 | |||||||||||||||||||||
Class R3 (11/00)(e) |
| |||||||||||||||||||||||||||||||
2011 | 29.83 | (.23 | ) | 2.79 | 2.56 | — | — | — | 32.39 | |||||||||||||||||||||||
2010 | 23.92 | (.16 | ) | 6.07 | 5.91 | — | — | — | 29.83 | |||||||||||||||||||||||
2009 | 21.26 | (.01 | ) | 2.67 | 2.66 | — | — | — | 23.92 | |||||||||||||||||||||||
2008 | 35.97 | (.05 | ) | (11.54 | ) | (11.59 | ) | — | (3.12 | ) | (3.12 | ) | 21.26 | |||||||||||||||||||
2007 | 29.41 | (.12 | ) | 7.02 | 6.90 | — | (.34 | ) | (.34 | ) | 35.97 | |||||||||||||||||||||
Class I (12/92)(e) |
| |||||||||||||||||||||||||||||||
2011 | 31.33 | (.06 | ) | 2.92 | 2.86 | — | — | — | 34.19 | |||||||||||||||||||||||
2010 | 25.09 | (.03 | ) | 6.38 | 6.35 | (.11 | ) | — | (.11 | ) | 31.33 | |||||||||||||||||||||
2009 | 22.31 | .11 | 2.77 | 2.88 | (.10 | ) | — | (.10 | ) | 25.09 | ||||||||||||||||||||||
2008 | 37.42 | .10 | (12.07 | ) | (11.97 | ) | (.02 | ) | (3.12 | ) | (3.14 | ) | 22.31 | |||||||||||||||||||
2007 | 30.48 | .03 | 7.30 | 7.33 | (.05 | ) | (.34 | ) | (.39 | ) | 37.42 | |||||||||||||||||||||
| 38 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 8.86 | % | $ | 84,875 | 1.20 | % | (.46 | )% | 1.20 | % | (.46 | )% | 88 | % | |||||||||||||
| 25.03 | 66,409 | 1.21 | (.36 | ) | 1.20 | (.35 | ) | 106 | ||||||||||||||||||
| 12.73 | 56,963 | 1.22 | .24 | 1.22 | .24 | 112 | ||||||||||||||||||||
| (34.81 | ) | 53,430 | 1.20 | .07 | 1.20 | .07 | 92 | |||||||||||||||||||
| 24.01 | 96,514 | 1.19 | (.15 | ) | 1.19 | (.15 | ) | 102 | ||||||||||||||||||
| 8.02 | 2,411 | 1.95 | (1.19 | ) | 1.95 | (1.19 | ) | 88 | ||||||||||||||||||
| 24.07 | 3,473 | 1.96 | (1.07 | ) | 1.95 | (1.06 | ) | 106 | ||||||||||||||||||
| 11.94 | 4,749 | 1.97 | (.48 | ) | 1.97 | (.48 | ) | 112 | ||||||||||||||||||
| (35.33 | ) | 5,907 | 1.95 | (.68 | ) | 1.95 | (.68 | ) | 92 | |||||||||||||||||
| 23.13 | 11,955 | 1.94 | (.90 | ) | 1.94 | (.90 | ) | 102 | ||||||||||||||||||
| 8.02 | 7,832 | 1.95 | (1.21 | ) | 1.95 | (1.21 | ) | 88 | ||||||||||||||||||
| 24.07 | 4,220 | 1.96 | (1.09 | ) | 1.95 | (1.08 | ) | 106 | ||||||||||||||||||
| 11.92 | 4,509 | 1.97 | (.51 | ) | 1.97 | (.51 | ) | 112 | ||||||||||||||||||
| (35.31 | ) | 4,368 | 1.95 | (.68 | ) | 1.95 | (.68 | ) | 92 | |||||||||||||||||
| 23.09 | 8,506 | 1.94 | (.90 | ) | 1.94 | (.90 | ) | 102 | ||||||||||||||||||
| 8.58 | 3,431 | 1.45 | (.72 | ) | 1.45 | (.72 | ) | 88 | ||||||||||||||||||
| 24.71 | 742 | 1.46 | (.60 | ) | 1.45 | (.59 | ) | 106 | ||||||||||||||||||
| 12.51 | 667 | 1.47 | (.05 | ) | 1.47 | (.05 | ) | 112 | ||||||||||||||||||
| (35.00 | ) | 454 | 1.45 | (.18 | ) | 1.45 | (.18 | ) | 92 | |||||||||||||||||
| 23.70 | 566 | 1.44 | (.39 | ) | 1.44 | (.39 | ) | 102 | ||||||||||||||||||
| 9.13 | 435,619 | .95 | (.17 | ) | .95 | (.17 | ) | 88 | ||||||||||||||||||
| 25.34 | 546,605 | .96 | (.11 | ) | .95 | (.10 | ) | 106 | ||||||||||||||||||
| 13.02 | 482,222 | .97 | .48 | .97 | .48 | 112 | ||||||||||||||||||||
| (34.65 | ) | 417,337 | .95 | .32 | .95 | .32 | 92 | |||||||||||||||||||
| 24.32 | 749,865 | .94 | .11 | .94 | .11 | 102 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 39 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| MID CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||
2011 | $ | 37.26 | $ | (.22 | ) | $ | 4.32 | $ | 4.10 | $ | — | $ | — | $ | — | $ | 41.36 | |||||||||||||||
2010 | 28.83 | (.18 | ) | 8.61 | 8.43 | — | — | — | 37.26 | |||||||||||||||||||||||
2009 | 23.88 | (.08 | ) | 5.03 | 4.95 | — | — | — | 28.83 | |||||||||||||||||||||||
2008 | 46.57 | (.16 | ) | (17.86 | ) | (18.02 | ) | — | (4.67 | ) | (4.67 | ) | 23.88 | |||||||||||||||||||
2007 | 41.43 | (.24 | ) | 9.19 | 8.95 | — | (3.81 | ) | (3.81 | ) | 46.57 | |||||||||||||||||||||
Class B (3/99) |
| |||||||||||||||||||||||||||||||
2011 | 32.62 | (.46 | ) | 3.77 | 3.31 | — | — | — | 35.93 | |||||||||||||||||||||||
2010 | 25.43 | (.37 | ) | 7.56 | 7.19 | — | — | — | 32.62 | |||||||||||||||||||||||
2009 | 21.22 | (.23 | ) | 4.44 | 4.21 | — | — | — | 25.43 | |||||||||||||||||||||||
2008 | 42.21 | (.38 | ) | (15.94 | ) | (16.32 | ) | — | (4.67 | ) | (4.67 | ) | 21.22 | |||||||||||||||||||
2007 | 38.15 | (.51 | ) | 8.38 | 7.87 | — | (3.81 | ) | (3.81 | ) | 42.21 | |||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||
2011 | 34.21 | (.49 | ) | 3.98 | 3.49 | — | — | — | 37.70 | |||||||||||||||||||||||
2010 | 26.67 | (.39 | ) | 7.93 | 7.54 | — | — | — | 34.21 | |||||||||||||||||||||||
2009 | 22.26 | (.24 | ) | 4.65 | 4.41 | — | — | — | 26.67 | |||||||||||||||||||||||
2008 | 44.03 | (.40 | ) | (16.70 | ) | (17.10 | ) | — | (4.67 | ) | (4.67 | ) | 22.26 | |||||||||||||||||||
2007 | 39.65 | (.53 | ) | 8.72 | 8.19 | — | (3.81 | ) | (3.81 | ) | 44.03 | |||||||||||||||||||||
Class R3 (12/00)(e) |
| |||||||||||||||||||||||||||||||
2011 | 36.58 | (.31 | ) | 4.23 | 3.92 | — | — | — | 40.50 | |||||||||||||||||||||||
2010 | 28.37 | (.26 | ) | 8.47 | 8.21 | — | — | — | 36.58 | |||||||||||||||||||||||
2009 | 23.56 | (.14 | ) | 4.95 | 4.81 | — | — | — | 28.37 | |||||||||||||||||||||||
2008 | 46.11 | (.24 | ) | (17.64 | ) | (17.88 | ) | — | (4.67 | ) | (4.67 | ) | 23.56 | |||||||||||||||||||
2007 | 41.15 | (.34 | ) | 9.11 | 8.77 | — | (3.81 | ) | (3.81 | ) | 46.11 | |||||||||||||||||||||
Class I (12/89)(e) |
| |||||||||||||||||||||||||||||||
2011 | 40.09 | (.10 | ) | 4.63 | 4.53 | — | — | — | 44.62 | |||||||||||||||||||||||
2010 | 30.94 | (.11 | ) | 9.26 | 9.15 | — | — | — | 40.09 | |||||||||||||||||||||||
2009 | 25.57 | (.02 | ) | 5.39 | 5.37 | — | — | — | 30.94 | |||||||||||||||||||||||
2008 | 49.40 | (.07 | ) | (19.09 | ) | (19.16 | ) | — | (4.67 | ) | (4.67 | ) | 25.57 | |||||||||||||||||||
2007 | 43.62 | (.14 | ) | 9.73 | 9.59 | — | (3.81 | ) | (3.81 | ) | 49.40 | |||||||||||||||||||||
| 40 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 11.00 | % | $ | 289,038 | 1.26 | % | (.53 | )% | 1.26 | % | (.53 | )% | 114 | % | |||||||||||||
| 29.24 | 275,040 | 1.23 | (.57 | ) | 1.23 | (.57 | ) | 114 | ||||||||||||||||||
| 20.73 | 231,743 | 1.23 | (.33 | ) | 1.23 | (.33 | ) | 123 | ||||||||||||||||||
| (42.75 | ) | 209,052 | 1.22 | (.43 | ) | 1.22 | (.43 | ) | 113 | |||||||||||||||||
| 23.36 | 425,995 | 1.21 | (.56 | ) | 1.21 | (.56 | ) | 96 | ||||||||||||||||||
| 10.15 | 4,127 | 2.01 | (1.26 | ) | 2.01 | (1.26 | ) | 114 | ||||||||||||||||||
| 28.27 | 5,490 | 1.98 | (1.31 | ) | 1.98 | (1.31 | ) | 114 | ||||||||||||||||||
| 19.84 | 6,762 | 1.98 | (1.06 | ) | 1.98 | (1.06 | ) | 123 | ||||||||||||||||||
| (43.18 | ) | 7,241 | 1.97 | (1.18 | ) | 1.97 | (1.18 | ) | 113 | |||||||||||||||||
| 22.47 | 15,820 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||
| 10.20 | 14,314 | 2.01 | (1.28 | ) | 2.01 | (1.28 | ) | 114 | ||||||||||||||||||
| 28.27 | 13,564 | 1.98 | (1.32 | ) | 1.98 | (1.32 | ) | 114 | ||||||||||||||||||
| 19.81 | 12,894 | 1.98 | (1.07 | ) | 1.98 | (1.07 | ) | 123 | ||||||||||||||||||
| (43.16 | ) | 13,011 | 1.97 | (1.18 | ) | 1.97 | (1.18 | ) | 113 | |||||||||||||||||
| 22.42 | 28,891 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||
| 10.72 | 34,929 | 1.51 | (.77 | ) | 1.51 | (.77 | ) | 114 | ||||||||||||||||||
| 28.94 | 33,772 | 1.48 | (.82 | ) | 1.48 | (.82 | ) | 114 | ||||||||||||||||||
| 20.42 | 26,822 | 1.48 | (.59 | ) | 1.48 | (.59 | ) | 123 | ||||||||||||||||||
| (42.88 | ) | 21,246 | 1.47 | (.69 | ) | 1.47 | (.69 | ) | 113 | |||||||||||||||||
| 23.06 | 29,490 | 1.46 | (.81 | ) | 1.46 | (.81 | ) | 96 | ||||||||||||||||||
| 11.30 | 728,843 | 1.01 | (.21 | ) | 1.01 | (.21 | ) | 114 | ||||||||||||||||||
| 29.57 | 993,053 | .98 | (.31 | ) | .98 | (.31 | ) | 114 | ||||||||||||||||||
| 21.00 | 907,825 | .98 | (.09 | ) | .98 | (.09 | ) | 123 | ||||||||||||||||||
| (42.59 | ) | 732,559 | .97 | (.18 | ) | .97 | (.18 | ) | 113 | |||||||||||||||||
| 2g3.68 | 1,478,374 | .96 | (.31 | ) | .96 | (.31 | ) | 96 | ||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 41 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| SMALL CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (8/95) |
| |||||||||||||||||||||||||||||||
2011 | $ | 19.04 | $ | (.24 | ) | $ | 1.61 | $ | 1.37 | $ | — | $ | — | $ | — | $ | 20.41 | |||||||||||||||
2010 | 14.55 | (.18 | ) | 4.67 | 4.49 | — | — | — | 19.04 | |||||||||||||||||||||||
2009 | 11.96 | (.11 | ) | 2.70 | 2.59 | — | — | — | 14.55 | |||||||||||||||||||||||
2008 | 21.65 | (.14 | ) | (7.97 | ) | (8.11 | ) | — | (1.58 | ) | (1.58 | ) | 11.96 | |||||||||||||||||||
2007 | 20.49 | (.19 | ) | 2.67 | 2.48 | — | (1.32 | ) | (1.32 | ) | 21.65 | |||||||||||||||||||||
Class B (3/99) |
| |||||||||||||||||||||||||||||||
2011 | 16.66 | (.35 | ) | 1.41 | 1.06 | — | — | — | 17.72 | |||||||||||||||||||||||
2010 | 12.82 | (.27 | ) | 4.11 | 3.84 | — | — | — | 16.66 | |||||||||||||||||||||||
2009 | 10.62 | (.18 | ) | 2.38 | 2.20 | — | — | — | 12.82 | |||||||||||||||||||||||
2008 | 19.56 | (.23 | ) | (7.13 | ) | (7.36 | ) | — | (1.58 | ) | (1.58 | ) | 10.62 | |||||||||||||||||||
2007 | 18.76 | (.31 | ) | 2.43 | 2.12 | — | (1.32 | ) | (1.32 | ) | 19.56 | |||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||
2011 | 17.46 | (.36 | ) | 1.48 | 1.12 | — | — | — | 18.58 | |||||||||||||||||||||||
2010 | 13.44 | (.28 | ) | 4.30 | 4.02 | — | — | — | 17.46 | |||||||||||||||||||||||
2009 | 11.13 | (.19 | ) | 2.50 | 2.31 | — | — | — | 13.44 | |||||||||||||||||||||||
2008 | 20.41 | (.24 | ) | (7.46 | ) | (7.70 | ) | — | (1.58 | ) | (1.58 | ) | 11.13 | |||||||||||||||||||
2007 | 19.53 | (.33 | ) | 2.53 | 2.20 | — | (1.32 | ) | (1.32 | ) | 20.41 | |||||||||||||||||||||
Class R3 (12/00)(e) |
| |||||||||||||||||||||||||||||||
2011 | 18.74 | (.29 | ) | 1.59 | 1.30 | — | — | — | 20.04 | |||||||||||||||||||||||
2010 | 14.36 | (.22 | ) | 4.60 | 4.38 | — | — | — | 18.74 | |||||||||||||||||||||||
2009 | 11.83 | (.16 | ) | 2.69 | 2.53 | — | — | — | 14.36 | |||||||||||||||||||||||
2008 | 21.49 | (.17 | ) | (7.91 | ) | (8.08 | ) | — | (1.58 | ) | (1.58 | ) | 11.83 | |||||||||||||||||||
2007 | 20.39 | (.24 | ) | 2.66 | 2.42 | — | (1.32 | ) | (1.32 | ) | 21.49 | |||||||||||||||||||||
Class I (8/95)(e) |
| |||||||||||||||||||||||||||||||
2011 | 20.51 | (.19 | ) | 1.72 | 1.53 | — | — | — | 22.04 | |||||||||||||||||||||||
2010 | 15.63 | (.15 | ) | 5.03 | 4.88 | — | — | — | 20.51 | |||||||||||||||||||||||
2009 | 12.81 | (.09 | ) | 2.91 | 2.82 | — | — | — | 15.63 | |||||||||||||||||||||||
2008 | 23.03 | (.10 | ) | (8.54 | ) | (8.64 | ) | — | (1.58 | ) | (1.58 | ) | 12.81 | |||||||||||||||||||
2007 | 21.66 | (.15 | ) | 2.84 | 2.69 | — | (1.32 | ) | (1.32 | ) | 23.03 | |||||||||||||||||||||
| 42 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 7.20 | % | $ | 36,188 | 1.54 | % | (1.19 | )% | 1.47 | % | (1.12 | )% | 118 | % | |||||||||||||
| 30.86 | 39,501 | 1.68 | (1.26 | ) | 1.47 | (1.05 | ) | 142 | ||||||||||||||||||
| 21.66 | 30,202 | 1.79 | (1.21 | ) | 1.47 | (.89 | ) | 169 | ||||||||||||||||||
| (40.07 | ) | 29,022 | 1.63 | (.99 | ) | 1.46 | (.82 | ) | 138 | |||||||||||||||||
| 12.81 | 149,231 | 1.59 | (1.01 | ) | 1.47 | (.89 | ) | 118 | ||||||||||||||||||
| 6.36 | 1,482 | 2.31 | (1.95 | ) | 2.22 | (1.86 | ) | 118 | ||||||||||||||||||
| 29.95 | 2,088 | 2.43 | (2.00 | ) | 2.22 | (1.79 | ) | 142 | ||||||||||||||||||
| 20.72 | 2,025 | 2.54 | (1.96 | ) | 2.22 | (1.64 | ) | 169 | ||||||||||||||||||
| (40.55 | ) | 1,978 | 2.38 | (1.74 | ) | 2.21 | (1.57 | ) | 138 | |||||||||||||||||
| 12.03 | 4,467 | 2.34 | (1.77 | ) | 2.22 | (1.65 | ) | 118 | ||||||||||||||||||
| 6.41 | 1,546 | 2.29 | (1.94 | ) | 2.22 | (1.87 | ) | 118 | ||||||||||||||||||
| 29.91 | 1,596 | 2.43 | (2.01 | ) | 2.22 | (1.80 | ) | 142 | ||||||||||||||||||
| 20.75 | 1,341 | 2.54 | (1.98 | ) | 2.22 | (1.66 | ) | 169 | ||||||||||||||||||
| (40.53 | ) | 1,104 | 2.38 | (1.73 | ) | 2.21 | (1.56 | ) | 138 | |||||||||||||||||
| 11.96 | 2,295 | 2.34 | (1.76 | ) | 2.22 | (1.64 | ) | 118 | ||||||||||||||||||
| 6.94 | 2,334 | 1.79 | (1.44 | ) | 1.72 | (1.37 | ) | 118 | ||||||||||||||||||
| 30.50 | 2,185 | 1.93 | (1.52 | ) | 1.72 | (1.31 | ) | 142 | ||||||||||||||||||
| 21.39 | 1,469 | 2.04 | (1.56 | ) | 1.72 | (1.24 | ) | 169 | ||||||||||||||||||
| (40.24 | ) | 433 | 1.89 | (1.21 | ) | 1.72 | (1.04 | ) | 138 | |||||||||||||||||
| 12.56 | 522 | 1.84 | (1.29 | ) | 1.72 | (1.17 | ) | 118 | ||||||||||||||||||
| 7.46 | 63,866 | 1.31 | (.94 | ) | 1.22 | (.84 | ) | 118 | ||||||||||||||||||
| 31.22 | 141,215 | 1.43 | (1.01 | ) | 1.22 | (.80 | ) | 142 | ||||||||||||||||||
| 22.01 | 103,423 | 1.54 | (.99 | ) | 1.22 | (.67 | ) | 169 | ||||||||||||||||||
| (39.97 | ) | 75,355 | 1.39 | (.73 | ) | 1.22 | (.56 | ) | 138 | |||||||||||||||||
| 13.10 | 154,456 | 1.34 | (.76 | ) | 1.22 | (.64 | ) | 118 | ||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 43 |
Notes to Financial Statements (all dollars and shares are rounded to thousands) (000)
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”) known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the fund from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors were renamed Class R3 and Class I Shares, respectively.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Large Cap Growth Opportunities Fund (“Large Cap Growth Opportunities”) formerly known as First American Large Cap Growth Opportunities Fund, Nuveen Mid Cap Growth Opportunities Fund (“Mid Cap Growth Opportunities”) formerly known as First American Mid Cap Growth Opportunities Fund and Nuveen Small Cap Growth Opportunities Fund (“Small Cap Growth Opportunities”) formerly known as First American Small Cap Growth Opportunities Fund, (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
Large Cap Growth Opportunities’ investment objective is long-term growth of capital. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of large-capitalization companies.
Mid Cap Growth Opportunities’ investment objective is capital appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of mid-capitalization companies within the same market capitalization range as the Russell MidCap ® Index.
Small Cap Growth Opportunities’ investment objective is growth of capital. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of small-capitalization companies.
Each Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. Each Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of each Fund’s total assets may be invested in equity securities of emerging market issuers. Each Fund also may invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions
| 44 | Nuveen Investments |
on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in only limited volume in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange, which generally represents a transfer from a Level 1 to a Level 2 security. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. Futures contracts are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for each Fund. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency exchange contracts, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if
| Nuveen Investments | 45 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Change in net unrealized appreciation (depreciation) of foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively” on the Statement of Operations, when applicable.
Futures Contracts
Each Fund is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in an attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2011, Small Cap Growth Opportunities invested in long equity futures contracts as part of the management of the Fund. These long futures contracts were used to manage cash flow activity and implement various tactical market and hedging strategies.
The average number of futures contracts outstanding during the fiscal year ended October 31, 2011, were as follows:
| Small Cap Growth Opportunities | ||||
Average number of futures contracts outstanding* | — | |||
| * | The average number of contracts is calculated based on the outstanding number of contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on futures contracts activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial
| 46 | Nuveen Investments |
assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. If the value of the securities on loan increases, [such that the level of collateralization falls below 102%] additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Securities lending fees paid | $ | 37 | $ | 191 | $ | 12 | ||||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
| Nuveen Investments | 47 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| Large Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 531,094 | $ | — | $ | — | $ | 531,094 | ||||||||
Money Market Funds* | 197,054 | — | — | 197,054 | ||||||||||||
Short-Term Investments | 8,920 | — | — | 8,920 | ||||||||||||
Total | $ | 737,068 | $ | — | $ | — | $ | 737,068 | ||||||||
| Mid Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 1,068,553 | $ | — | $ | — | $ | 1,068,553 | ||||||||
Money Market Funds* | 393,152 | — | — | 393,152 | ||||||||||||
Short-Term Investments | 12,622 | — | — | 12,622 | ||||||||||||
Total | $ | 1,474,327 | $ | — | $ | — | $ | 1,474,327 | ||||||||
| Small Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 102,907 | $ | — | $ | — | ** | $ | 102,907 | |||||||
Money Market Funds* | 52,004 | — | — | 52,004 | ||||||||||||
Short-Term Investments | 2,058 | — | — | 2,058 | ||||||||||||
Total | $ | 156,969 | $ | — | $ | — | ** | $ | 156,969 | |||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
| ** | Level 3 security has a market value of zero. |
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| Small Cap Growth Opportunities Level 3 Common Stocks | ||||
Balance at the beginning of year | $ | — | ** | |
Gains (losses): | ||||
Net realized gains (losses) | — | |||
Net change in unrealized appreciation (depreciation) | — | |||
Purchases at cost | — | |||
Sales at proceeds | — | |||
Net discounts (premiums) | — | |||
Transfers in to | — | |||
Transfers out of | — | |||
Balance at the end of year | $ | — | ** | |
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011 | $ | — | ||
| ** | Level 3 security has a market value of zero. |
| 48 | Nuveen Investments |
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.
The following table presents the amount of net realized gain (loss) recognized for the fiscal year ended October 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.
| Net Realized Gain (Loss) from Futures Contracts | Small Cap Growth Opportunities | |||
Risk Exposure | ||||
Equity | $ | 662 | ||
4. Fund Shares
Transactions in Fund shares were as follows:
| Large Cap Growth Opportunities | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,031 | $ | 34,137 | 313 | $ | 8,454 | ||||||||||
Class B | 6 | 178 | — | 14 | ||||||||||||
Class C | 137 | 4,198 | 6 | 155 | ||||||||||||
Class R3 (1) | 97 | 3,261 | 7 | 173 | ||||||||||||
Class I (1) | 2,239 | 76,172 | 1,980 | 54,876 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 4 | 106 | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | — | — | 28 | 783 | ||||||||||||
| 3,510 | 117,946 | 2,338 | 64,561 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (648 | ) | (21,533 | ) | (472 | ) | (12,704 | ) | ||||||||
Class B | (51 | ) | (1,545 | ) | (88 | ) | (2,161 | ) | ||||||||
Class C | (30 | ) | (912 | ) | (55 | ) | (1,360 | ) | ||||||||
Class R3 (1) | (16 | ) | (534 | ) | (10 | ) | (250 | ) | ||||||||
Class I (1) | (4,264 | ) | (148,356 | ) | (3,781 | ) | (105,362 | ) | ||||||||
Class I (1) – In-Kind | (2,678 | ) | (86,539 | ) | — | — | ||||||||||
| (7,687 | ) | (259,419 | ) | (4,406 | ) | (121,837 | ) | |||||||||
Net increase (decrease) | (4,177 | ) | $ | (141,473 | ) | (2,068 | ) | $ | (57,276 | ) | ||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| Nuveen Investments | 49 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
| Mid Cap Growth Opportunities | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,759 | $ | 73,910 | 1,171 | $ | 38,764 | ||||||||||
Class B | 2 | 69 | 1 | 39 | ||||||||||||
Class C | 70 | 2,674 | 39 | 1,175 | ||||||||||||
Class R3 (1) | 515 | 21,200 | 417 | 13,126 | ||||||||||||
Class I (1) | 3,994 | 181,805 | 3,994 | 139,991 | ||||||||||||
| 6,340 | 279,658 | 5,622 | 193,095 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,153 | ) | (91,460 | ) | (1,828 | ) | (59,512 | ) | ||||||||
Class B | (55 | ) | (2,033 | ) | (99 | ) | (2,824 | ) | ||||||||
Class C | (87 | ) | (3,308 | ) | (126 | ) | (3,782 | ) | ||||||||
Class R3 (1) | (576 | ) | (23,990 | ) | (439 | ) | (14,166 | ) | ||||||||
Class I (1) | (5,003 | ) | (228,179 | ) | (8,563 | ) | (298,042 | ) | ||||||||
Class I (1) – In-Kind | (7,424 | ) | (320,657 | ) | — | — | ||||||||||
| (15,298 | ) | (669,627 | ) | (11,055 | ) | (378,326 | ) | |||||||||
Net increase (decrease) | (8,958 | ) | $ | (389,969 | ) | (5,433 | ) | $ | (185,231 | ) | ||||||
| Small Cap Growth Opportunities | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 282 | $ | 6,049 | 368 | $ | 6,417 | ||||||||||
Class B | 2 | 40 | 2 | 37 | ||||||||||||
Class C | 13 | 264 | 24 | 405 | ||||||||||||
Class R3 (1) | 62 | 1,262 | 67 | 1,127 | ||||||||||||
Class I (1) | 950 | 21,935 | 1,821 | 34,078 | ||||||||||||
| 1,309 | 29,550 | 2,282 | 42,064 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (583 | ) | (12,808 | ) | (369 | ) | (6,354 | ) | ||||||||
Class B | (44 | ) | (812 | ) | (35 | ) | (523 | ) | ||||||||
Class C | (22 | ) | (428 | ) | (33 | ) | (520 | ) | ||||||||
Class R3 (1) | (62 | ) | (1,293 | ) | (52 | ) | (865 | ) | ||||||||
Class I (1) | (2,956 | ) | (66,197 | ) | (1,551 | ) | (28,262 | ) | ||||||||
Class I (1) – In-Kind | (1,983 | ) | (46,265 | ) | — | — | ||||||||||
| (5,650 | ) | (127,803 | ) | (2,040 | ) | (36,524 | ) | |||||||||
Net increase (decrease) | (4,341 | ) | $ | (98,253 | ) | 242 | $ | 5,540 | ||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
Large Cap Growth Opportunities | 30 | 65 | ||||||
Mid Cap Growth Opportunities | 28 | 59 | ||||||
Small Cap Growth Opportunities | 33 | 9 | ||||||
| 50 | Nuveen Investments |
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending, short-term investments and derivative transactions, where applicable) during the fiscal year ended October 31, 2011, were as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Purchases | $ | 498,449 | $ | 1,307,490 | $ | 159,007 | ||||||
Sales | 641,620 | 1,695,922 | 253,779 | |||||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Cost of investments | $ | 627,433 | $ | 1,279,842 | $ | 150,782 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 117,540 | $ | 210,263 | $ | 11,605 | ||||||
Depreciation | (7,905 | ) | (15,778 | ) | (5,418 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 109,635 | $ | 194,485 | $ | 6,187 | ||||||
Permanent differences, primarily due to redemptions in-kind, net operating losses, tax equalization, Real Estate Investment Trust adjustments, and investments in partnerships, resulted in reclassifications among the Funds’ components of net assets at October 31, 2011, as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Capital paid-in | $ | 30,262 | $ | 100,365 | $ | 8,632 | ||||||
Undistributed (Over-distribution) of net investment income | 1,297 | 3,741 | 1,333 | |||||||||
Accumulated net realized gain (loss) | (31,559 | ) | (104,106 | ) | (9,965 | ) | ||||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ tax year end, were as follows:
| Large Cap Growth Opportunities | Mid Cap | Small Cap | ||||||||||
Undistributed net ordinary income* | $ | — | $ | — | $ | — | ||||||
Undistributed net long-term capital gains | 18,182 | 38,746 | 1,420 | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2011 and October 31, 2010, was designated for purposes of the dividends paid deduction as follows:
| 2011 | Large Cap Growth Opportunities | Mid Cap | Small Cap | |||||||||
Distributions from net ordinary income* | $ | — | $ | — | $ | — | ||||||
Distributions from net long-term capital gains | — | — | — | |||||||||
| 2010 | Large Cap Growth Opportunities | Mid Cap | Small Cap | |||||||||
Distributions from net ordinary income* | $ | 2,106 | $ | — | $ | — | ||||||
Distributions from net long-term capital gains | — | — | — | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
| Nuveen Investments | 51 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
During the Funds’ tax year ended October 31, 2011, the Funds utilized their capital loss carryforwards as follows:
| Large Cap Growth Opportunities | Mid Cap | Small Cap | ||||||||||
Utilized capital loss carryforwards | $ | 42,227 | $ | 91,799 | $ | 16,281 | ||||||
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors the following annual advisory fee, payable monthly, based on average daily net assets:
| Fund | Advisory Fee Rate | |||
Large Cap Growth Opportunities* | .65 | % | ||
Mid Cap Growth Opportunities | .70 | |||
Small Cap Growth Opportunities | 1.00 | |||
| * | The advisory fees for Large Cap Growth Opportunities were equal to an annual rate of .65% of the average daily net assets up to $3 billion, .625% of the average daily net assets on the next $2 billion and .60% of the average daily net assets in excess of $5 billion. |
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. 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 Nuveen Fund Advisors.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Large Cap Growth Opportunities Fund-Level Fee Rate | Mid Cap Growth Opportunities Fund-Level Fee Rate | Small Cap | |||||||||
For the first $125 million | .6500 | % | .7000 | % | .8000 | % | ||||||
For the next $125 million | .6375 | .6875 | .7875 | |||||||||
For the next $250 million | .6250 | .6750 | .7750 | |||||||||
For the next $500 million | .6125 | .6625 | .7625 | |||||||||
For the next $1 billion | .6000 | .6500 | .7500 | |||||||||
For net assets over $2 billion | .5750 | .6250 | .7250 | |||||||||
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule is as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s |
| 52 | Nuveen Investments |
| issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rate for each Fund was as follows: |
| Fund | Complex-Level Fee Rate | |||
Large Cap Growth Opportunities | .1975 | % | ||
Mid Cap Growth Opportunities | .1971 | |||
Small Cap Growth Opportunities | .2000 | |||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Fund’s overall strategy and asset allocation decisions. Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed each investing Fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations, and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
During the period November 1, 2010 through December 31, 2010, FAF Advisors agreed to waive fees and reimburse other Fund expenses of Small Cap Growth Opportunities so that total annual Fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange-traded funds and other investment companies, as a percentage of each Fund’s average daily net assets, did not exceed the following amounts:
| Small Cap Growth Opportunities | ||||||
Class A Shares | 1.47 | % | ||||
Class B Shares | 2.22 | |||||
Class C Shares | 2.22 | |||||
Class R3 Shares (1) | 1.72 | |||||
Class I Shares (1) | 1.22 | |||||
Expiration date | February 28, 2011 | |||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Effective January 1, 2011, Nuveen Fund Advisors agreed to waive fees and reimburse other Fund expenses of Small Cap Growth Opportunities so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table:
| Small Cap Growth Opportunities | ||||||
Class A Shares | 1.47 | % | ||||
Class B Shares | 2.22 | |||||
Class C Shares | 2.22 | |||||
Class R3 Shares (1) | 1.72 | |||||
Class I Shares (1) | 1.22 | |||||
Expiration date | February 29, 2012 | |||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Funds advised by Nuveen Fund Advisors.
| Nuveen Investments | 53 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
Custodian Fees
U.S. Bank serves as the custodian for each Fund pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly. Interest earned on uninvested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Under the new agreement, Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B Shares and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Sales charges collected (Unaudited) | $ | 118 | $ | 173 | $ | 25 | ||||||
Paid to financial intermediaries (Unaudited) | 105 | 155 | 22 | |||||||||
Quasar and/or Nuveen Securities, LLC also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Commission advances (Unaudited) | $ | 47 | $ | 40 | $ | 2 | ||||||
| 54 | Nuveen Investments |
All 12b-1 service and distribution fees collected on Class B and C Shares during the first year following a purchase were retained by Quasar and/or the Nuveen Securities, LLC to compensate for commissions advanced to financial intermediaries. During the fiscal year ended October 31, 2011, Quasar and/or the Nuveen Securities, LLC retained such 12b-1 fees as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
12b-1 fees retained (Unaudited) | $ | 36 | $ | 47 | $ | 16 | ||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $3 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of the Funds, with the exception of Small Cap Growth Opportunities, were sold with an up-front sales charge of 5.50%. Small Cap Growth Opportunities, Class A Shares were sold with an up-front sales charge of 4.25%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Effective January 18, 2011, Class A Shares of the Funds are sold with an up-front sales charge of 5.75%. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class B Shares continue to automatically convert to Class A Shares eight years after purchase. Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Quasar and/or Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
CDSC retained (Unaudited) | $ | 3 | $ | 8 | $ | — | ||||||
Affiliated 401(k) Plan and Redemptions In-Kind
An affiliated 401(k) plan of FAF Advisors (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 1, 2010, in the amounts as follows:
Large Cap Growth Opportunities | $ | 86,539 | ||
Mid Cap Growth Opportunities | 129,554 |
An affiliated pension plan of FAF Advisors (the “plan”) also previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, in the amounts as follows:
Mid Cap Growth Opportunities | $ | 191,102 | ||
Small Cap Growth Opportunities | 46,265 |
In these transactions, the Funds paid redemption proceeds by distributing a proportionate amount of securities in their respective portfolios. Remaining shareholders in the Funds did not recognize any capital gains from the transactions.
| Nuveen Investments | 55 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, and the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
| 56 | Nuveen Investments |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
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Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
| 58 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
| Nuveen Investments | 59 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
| 60 | Nuveen Investments |
Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). At a meeting of the Funds’ stockholders held on December 17, 2010, stockholders of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement and the NAM Sub-Advisory Agreement became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for the Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be
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Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
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In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
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Notes
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Notes
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Lipper Large-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Growth Funds Classification. The Lipper Large-Cap Growth Funds Classification Average contained 766, 575 and 370 funds for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Multi-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Multi-Cap Growth Funds Classification. The Lipper Multi-Cap Growth Funds Classification Average contained 494, 335 and 227 for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Small-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small Cap-Growth Funds Classification. The Lipper Small-Cap Growth Funds Classification Average contained 499, 377 and 245 funds for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
Russell 1000 Growth Index: An index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Russell 2000 Growth Index: An index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Russell Midcap Growth Index: An index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
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Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodian
U.S. Bank National Association
St. Paul, MN
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Long-Term Capital Gain Distributions: The following Funds designate as a long term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amounts shown in the accompanying table or, if greater, the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2011:
| Fund | Long Term Capital Gain Dividend (in thousands) | |||
Nuveen Large Cap Growth Opportunities Fund | $ | 2,343 | ||
Nuveen Mid Cap Growth Opportunities Fund | 7,697 | |||
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MAN-FCGO-1011P
Mutual Funds
Nuveen Equity Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen Large Cap Select Fund | FLRAX | — | FLYCX | FLSSX | FLRYX | |||||
Nuveen Mid Cap Select Fund | FATAX | FITBX | FTACX | — | FATCX | |||||
Nuveen Small Cap Select Fund | EMGRX | ARSBX | FHMCX | ASEIX | ARSTX | |||||
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| Must be preceded by or accompanied by a prospectus. | NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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.
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
David Chalupnik, CFA, and Anthony (Tony) Burger, CFA, are the portfolio managers for the Nuveen Large Cap Select Fund (formerly known as First American Large Cap Select Fund). David, who has more than 27 years of financial industry experience, assumed portfolio management responsibilities in 2003. Tony, with more than 17 years of financial industry experience, joined the management team for the Fund in 2004.
Tony and David are also the portfolio managers for the Nuveen Mid Cap Select Fund (formerly known as First American Mid Cap Select Fund). They both assumed portfolio management responsibilities for the Fund in 2005.
Allen Steinkopf, CFA, and Mark Traster, CFA, are the portfolio managers for the Nuveen Small Cap Select Fund (formerly known as First American Small Cap Select Fund). Allen, who has 18 years of financial industry experience, assumed portfolio management responsibilities in 2004. Mark, with 19 years of experience, joined the management team for the Fund in 2008.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the U.S. economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
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In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt issue caused a high degree of volatility in the equity markets. The first half of the period saw dramatic gains for stocks and other risk assets fueled by signs of an improving economy. However, as the summer progressed, markets fell back sharply. For much of August and September, stocks traded lower before staging a comeback in the final month of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen Large Cap Select Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and since inception periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the S&P 500 Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in the common stocks of companies that have market capitalizations of $3 billion or greater at the time of purchase. During the twelve-month period, we continued to utilize our deep, rigorous research approach to find and invest in stocks that we believed had strong and/or improving fundamentals, attractive valuations and a catalyst for future positive relative price performance. We also continued to tilt the portfolio to areas of the market that our research suggested were particularly attractive. Throughout this time frame, the portfolio was tilted toward cyclical stocks and sectors that appeared to have further margin expansion capacity while still selling at attractive valuations. Stocks that we sold generally faced an expected or actual deterioration in their fundamental earnings outlook, the realization or removal of the expected catalyst or excessive valuation.
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Despite the fact that highly cyclical industrials didn’t perform all that well overall during the fiscal year, the Fund outperformed in that sector due to strong stock selection. The Fund especially benefited from our emphasis on several broadly diversified companies such as Eaton, Honeywell and Parker Hannifin. Eaton is a global leader in parts manufacturing for the industrial, aerospace, truck and automotive industries. Honeywell is a diversified technology and manufacturing company with products across a range of industries including aerospace, building control systems, automotive, specialty materials and transportation. Likewise, Parker Hannifin is a leading manufacturer of motion and control technologies and systems for a wide variety of commercial, mobile, industrial and aerospace markets. These companies’ exposure to a broad array of industries helped them outperform the more cyclical names in the group.
Stock selection was also strong in the technology sector. Our focus on owning stocks related to strong secular trends such as tablets, smart phones, data storage and data analytics was beneficial to the Fund’s performance. In particular, four holdings outperformed the sector and the market during the quarter. Our standout performer was Apple as it continued to dominate and gain market share in the computing devices market with the introduction of its new iPad and upgrades to its iPhone. Also, QUALCOMM, the largest global manufacturer of mobile phone chipsets, outperformed due to the increasing demand for smart phones. Software company Teradata, which offers data management and analytical tools to other firms, saw its stock gain as companies around the globe attempted to increase their effectiveness through customer data analysis. Finally, owning data storage provider EMC aided results as the company benefited from the increased demand for data storage and analysis worldwide. Although we still own Apple, QUALCOMM and Teradata, we sold EMC due to its tremendous exposure to Europe. In addition, avoiding companies tied to older technology that is losing market share — such as personal computers and networks — also benefited results. For example, the Fund’s relative return was helped by not owning Hewlett-Packard and Cisco Systems, two companies that underperformed during the period.
The Fund’s unfavorable results in several other sectors offset the above-mentioned areas of strength. For example, we underperformed in both basic materials and energy as concerns about global growth, the European debt crisis and a double-dip recession in the United States held back much of the sector and the Fund’s holdings. Fears about the impact of a growth slowdown in emerging markets like China hurt the Fund’s positions in copper producer Freeport-McMoRan Copper & Gold and aluminum company Alcoa. Both companies export much of their product into China for new construction. As China’s economy and building activity slowed, the demand for both copper and aluminum dropped and the stocks underperformed. We still like Freeport-McMoRan and have held onto the Fund’s position; however, we sold Alcoa during the period.
In energy, the sector overall outperformed the market, but the Fund’s holdings fell short. While the smaller, high production and refining companies performed best in the segment, we did not own any of these stocks in the Fund. We were overweight in oil services stocks, another area that outperformed the market; unfortunately we mistimed our overweight and owned the wrong stocks within the group. We added to oil services during August when stocks were under pressure and we saw values there. However, we were a bit early in our overweight as companies like Halliburton and Baker Hughes have
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underperformed since we purchased them. We also underperformed in the production area with our holding in Hess Corporation, a diversified international energy producer. The stock’s results were basically flat versus a sector that did quite well. In addition, we owned Whiting Petroleum in that segment for most of the year. Whiting’s stock fell after the company experienced production problems due to the severe flooding around its Bakken and Three Forks shale areas in North Dakota.
In financials, a combination of an overweight stance and poor stock selection hurt results. The sector struggled throughout the year, particularly the larger companies tied to global growth and asset exposure in Fund holdings such as JPMorgan Chase, Citigroup and Goldman Sachs. We sold Goldman Sachs and reduced exposure to JPMorgan and Citigroup because of concerns over the ongoing European sovereign debt issues. We did offset some of the poor results with our repositioning into high-quality, domestic-oriented financials that do not have as much exposure overseas such as Wells Fargo and Capital One. Wells Fargo, which is now the Fund’s largest financial weight, benefited from good operating trends and strong credit quality and earnings. Capital One, a U.S. bank and credit card company, also saw positive performance during a period when the overall segment produced negative results.
We have reduced most of the Fund’s cyclical overweights, like materials and industrials, to be more in line with the benchmark weights; however, we are maintaining our large overweight in consumer discretionary and significant underweight to consumer staples. With the consumer discretionary sector being so diverse, we continue to find a lot of interesting ideas with strong current and expected fundamentals and attractive valuations. We’re steering away from staples as we find those stocks fairly valued and their fundamentals more challenged as higher commodity prices impact their margins. We remain slightly overweight in the energy sector with an emphasis on oil services, where we believe stocks are still tremendously undervalued. These stocks are pricing in a recession, which we do not believe will happen, while they should continue to benefit from high oil prices. While the Fund still maintains a slight overweight to financials, we did take that weighting down during the fiscal year and are maintaining the lower weight.
Nuveen Mid Cap Select Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell Midcap® Index and the Lipper category average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $350 million and $14 billion. During the twelve-month period, we continued to implement our “best of the best” investment approach. We started by using
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a combination of fundamental and quantitative analysis to identify mid-sized companies that we believed had strong fundamentals, attractive valuations and a catalyst for future positive relative performance. We further narrowed down our investable universe by identifying only those stocks that were held in other funds within our firm. We then combined a subset of those stocks into a portfolio that had risk tolerances within our acceptable limits. Generally, stocks we sold faced an expected or actual deterioration in their fundamental earnings outlook, the realization or removal of the expected catalyst or excessive valuation.
As the economic recovery lost its momentum partway through the fiscal year, the Fund’s results were hindered by our overweight position in stocks within the smallest quintile of the benchmark’s market-cap range. Likewise, the Fund was also negatively impacted by an overweight to higher volatility stocks. Although market returns were positive for the year, smaller-cap names and stocks exhibiting the highest volatility were underperformers as investors flocked to more defensive companies that showed more reliable revenue and earnings growth. However, our emphasis on momentum stocks — those that have outperformed the market over the previous twelve months — was an effective strategy as they continued to perform well during this period.
Among the various sectors, industrials and consumer discretionary were the Fund’s top performers during the period. Within industrials, the Fund experienced strong stock selection including a position in aerospace component manufacturer Goodrich, which was taken over by United Technologies. Engineering and construction company MasTec also performed extremely well during the year. The company saw strong revenue and earnings growth due to its entrance into the electrical vehicle market. MasTec also benefited from strong demand in its pipeline business and increased spending by some of its largest wireless customers as they continued to build out and upgrade their networks. Mining equipment manufacturer Joy Global bucked the trend of other commodity-driven global growth companies and turned in strong results. The company benefited from strong management execution in a tough environment.
In the consumer discretionary sector, Fund performance was aided by both an overweight and strong stock selection. Bright spots included a large overweight in yoga and athletic apparel retailer and manufacturer lululemon Athletica. This very strong secular growth company continued to beat expectations for both revenue and earnings as demand for its products soared. Also, discount retailer Dollar Tree continued to produce positive earnings per share surprises and strong operating results as its unique business model continued to attract the cash-conscious consumer.
In utilities and consumer staples, the Fund’s underweights hurt results as investors turned to more defensive companies during periods of volatility. However, our position in cosmetics company Estee Lauder was a bright spot in the staples sector. The company continued to see broad-based, top-line growth and margin expansion as high-end consumers returned to spending for health and beauty products.
Holdings within global growth sectors including materials, technology and energy hurt performance. While technology experienced some positive performance from ATM operator Cardtronics, data warehouse solutions provider Teradata and instrumentation manufacturer MKS Instruments, these results were offset by negative stock selection
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elsewhere in the sector. Shares of four high-multiple names all suffered during the year as revenue and earnings growth were not able to keep up with lofty investor expectations. These underperformers included software optimization firm F5 Networks; networking and data storage hardware company Brocade; network storage solutions provider NetApp; and design software and service firm Autodesk. We sold all four of these technology holdings during the period.
Unfavorable stock selection in the health care and financial sectors also detracted from the Fund’s results during the period. The financial sector, a particularly tough area throughout the year, had a strong negative effect on our performance. Shares of mortgage insurer MGIC Investment fell back significantly this year as the downgrade of U.S. debt by Standard & Poor’s (S&P) caused investors to worry about potentially higher interest rates and consequently more mortgage defaults. Insurance companies Lincoln National and Hartford Financial also plummeted due to S&P’s downgrade. The Fund did, however, see a few bright spots in financials, such as Discover Financial Services and real estate investment trusts American Campus Communities and Federal Realty Investment Trust. Within health care, shares of the biotechnology instrument manufacturer Illumina dropped more than 50%. The company’s revenue and earnings were far below guidance and expectations because of budget squeezes affecting its government and academic customers.
Because we expect returns to be driven primarily by stock selection, we remain focused on finding companies that exhibit strong or improving business fundamentals, attractive valuations and positive catalysts for improved market recognition. We continue to overweight cyclical sectors in the Fund including consumer discretionary, technology, basic materials and industrials. We are finding considerable earnings leverage, restructuring opportunities and significant values in select cyclical companies. We also are maintaining an overweight in financials. On the other hand, the Fund is underweight in the more economically stable areas of the market such as consumer staples, health care and utilities. We believe that many of the stocks in these sectors are overvalued and fundamentally challenged.
Nuveen Small Cap Select Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) slightly underperformed the Russell 2000® Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations of less than $2.5 billion at the time of purchase. During this period, we continued to execute on our strategy of investing in well-run, small-cap companies we believe offer good value in order to generate
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competitive returns for the Fund. We also continued to keep the Fund well diversified, with its sector weightings very close to the weights in the Russell 2000 Index.
Health care was the top-performing sector for the Fund during the fiscal year. Endologix was a standout as its new aortic stent has been greeted positively by the marketplace and is taking market share. The company also made a favorable acquisition during the period, which will help Endologix market its product overseas. Mednax, a neonatal and anesthesiologist doctors practice, benefited as the U.S. birth rate bounced back from its negative rate in 2010 to 1%-1.5% growth in 2011. In addition, the company was able to close a number of acquisitions during the year.
In two sectors of the portfolio, industrials and energy, the Fund was rewarded for our emphasis on holdings that benefited from the massive increase in shale drilling activity for natural gas and oil in the United States. Our strategy was also to steer away from natural gas exploration and production and more toward oil-related stocks. In industrials, the Fund experienced strong results led by MasTec, an engineering and construction firm that specializes in services to the telecommunication and energy industries. Several of MasTec’s biggest customers have been heavy spenders this year as they continue to build out and upgrade their wireless networks. MasTec also benefited from strong demand in its pipeline construction business as increased pipeline capacity was needed for the Marcellus and Bakken shale areas. Likewise, industrial handling equipment provider Chart Industries was a beneficiary of increased natural gas production. As production has increased dramatically, liquefied natural gas (LNG) has started to enter into the power vehicle market as well as being a fuel for export. Chart Industries, which constructs holding tanks for LNG, has experienced very strong demand in this business line over the period.
In energy, the Fund’s emphasis on refining and oil services was a significant positive contributor to performance. The Fund benefited from our investment in Delek U.S. Holdings, a small mid-continent refiner. As oil production from the Bakken shale area in North Dakota increased from around 100,000 to 350,000 barrels per day, there was not enough readily available pipeline capacity to move this oil effectively across the country. Delek benefited by paying a lower price for this oil and seeing its margins increase dramatically throughout the year. So despite a slowdown in demand for gasoline and refined products, Delek’s profits were very strong. Another energy holding, oilfield services company Parker Drilling, also capitalized on the increased drilling in the Bakken, Eagle Ford and Marcellus shales. Parker’s Quail Tools subsidiary saw a dramatic surge in demand for its drilling and rental equipment.
While not a large weighting in the Fund, the consumer staples sector contributed positively to its twelve-month performance. The outperformance was driven by our two holdings in the organic foods area, Hain Celestial Group and Smart Balance. After their businesses fell due to the economic slowdown in 2009 and 2010, they both experienced a pick-up in demand during the period. Natural and organic products are being well received as consumers focus on eating healthier foods and using products with fewer chemicals and preservatives. Most of Hain Celestial’s product lines are growing at high single-digit to double-digit rates. Meanwhile, Smart Balance’s spread product business has benefited from an improved pricing environment.
Results were mixed within the technology sector. Smith Micro Software was impacted dramatically as it missed a product cycle with its largest customer and was designed out
| Nuveen Investments | 11 |
of the company’s latest product offering. Smith Micro’s stock was down in concert with its very poor operating results; however, the company is working hard with this customer as well as others in the industry to regain lost business. The semiconductor industry was an area of strength, particularly because of merger and acquisition activity in the segment. The Fund benefited from owning chip maker Advanced Analogic Technologies, which received a takeover bid from competitor Skyworks Solutions during the period. The Fund also owned a good-sized position in NetLogic Microsystems, which was bought out by Broadcom for a 35% premium.
The financial sector had a difficult year and was the primary area of weakness for the Fund. In particular, our shortfall was driven by underperformance in MGIC Investment, the country’s largest mortgage insurer. We bought MGIC in 2010 when we believed the company had reserved for the worst of its losses due to the housing crisis and had raised a significant amount of capital to weather the storm. Unfortunately, weak employment and macroeconomic data this past summer caused renewed worries about a double-dip recession and MGIC fell back again. We’ve continued to hold our position as we believe the company has adequate capital and the housing market is seeing some signs of stabilization.
In consumer discretionary, two holdings hurt our results: slot machine manufacturer WMS Gaming and discount shoe retailer Payless ShoeSource. We’ve owned WMS Gaming for a number of years and it’s been a good performer for the Fund. However this past year, the company lost its leadership status in the industry as some of its competitors have been gaining share. Also, Payless Shoes has not been able to recover from the recession as value-oriented consumers have been hit hard and continue to see the slowest recovery. We sold both holdings during the period.
We continue to implement the Fund’s strategy of owning companies that we believe show good and/or improving fundamentals, reasonable valuations and identifiable catalysts that would cause them to outperform within their respective sectors. We kept the Fund’s sector weights fairly neutral relative to the index, allowing stock selection to be the main driver of performance. Our only current sector overweight in the portfolio is in energy.
Despite some of the macro issues hanging over the markets, we’re seeing solid or improving operating performance from a number of companies. We continue to search for opportunities across the portfolio, but particularly in select industries within technology, industrials, utilities and energy that have good secular growth tailwinds. For example, in technology we’re looking for companies that will continue to take share in the 4G wireless build-out or the software-as-a-service (SaaS) industries. Within the industrials and energy sectors, we’re emphasizing areas related to natural gas pipelines. In utilities, we’re looking for companies that have the potential to benefit from the infrastructure upgrades that need to happen to the country’s transmission system, especially on the East Coast.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk. Investments in small- and mid-cap companies are subject to greater volatility. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.
| 12 | Nuveen Investments |
Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares, and Class Y Shares previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
| Nuveen Investments | 13 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Large Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | Since Inception* | ||||||||||
Class A Shares at NAV | 0.69% | -1.58% | 4.91% | |||||||||
Class A Shares at maximum Offering Price | -5.10% | -2.74% | 4.21% | |||||||||
S&P 500 Index** | 8.09% | 0.25% | 6.57% | |||||||||
Lipper Large-Cap Core Funds Classification Average** | 5.39% | -0.27% | 5.98% | |||||||||
Class C Shares | -0.09% | -2.37% | 4.09% | |||||||||
Class R3 Shares | 0.43% | -1.82% | 4.67% | |||||||||
Class I Shares | 0.89% | -1.33% | 5.17% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | Since Inception* | ||||||||||
Class A Shares at NAV | -6.90% | -3.41% | 3.50% | |||||||||
Class A Shares at maximum Offering Price | -12.25% | -4.54% | 2.80% | |||||||||
Class C Shares | -7.62% | -4.18% | 2.69% | |||||||||
Class R3 Shares | -7.14% | -3.63% | 3.26% | |||||||||
Class I Shares | -6.75% | -3.16% | 3.76% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.25% | |||
Class C Shares | 2.00% | |||
Class R3 Shares | 1.50% | |||
Class I Shares | 1.00% | |||
| * | Since inception returns are from 1/31/03. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. |
| 14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 15 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Mid Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 1.83% | -0.13% | 2.20% | |||||||||
Class A Shares at maximum Offering Price | -4.05% | -1.30% | 1.59% | |||||||||
Russell Midcap® Index* | 7.85% | 2.26% | 8.35% | |||||||||
Lipper Mid-Cap Growth Funds Classification Average* | 8.19% | 3.46% | 5.96% | |||||||||
Class B Shares w/o CDSC** | 1.01% | -0.88% | 1.42% | |||||||||
Class B Shares w/CDSC** | -3.99% | -1.08% | 1.42% | |||||||||
Class C Shares | 1.05% | -0.87% | 1.43% | |||||||||
Class I Shares | 2.06% | 0.13% | 2.45% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -7.25% | -1.87% | 2.75% | |||||||||
Class A Shares at maximum Offering Price | -12.61% | -3.02% | 2.14% | |||||||||
Class B Shares w/o CDSC** | -8.01% | -2.61% | 1.97% | |||||||||
Class B Shares w/CDSC** | -12.60% | -2.80% | 1.97% | |||||||||
Class C Shares | -7.83% | -2.58% | 1.99% | |||||||||
Class I Shares | -7.05% | -1.62% | 3.02% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 2.00% | 1.41% | ||||||
Class B Shares | 2.75% | 2.16% | ||||||
Class C Shares | 2.75% | 2.16% | ||||||
Class I Shares | 1.75% | 1.16% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.41%, 2.16%, 2.16% and 1.16%, respectively, for Class A, Class B, Class C and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 17 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Small Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 6.14% | 0.34% | 7.39% | |||||||||
Class A Shares at maximum Offering Price | 0.00% | -0.83% | 6.76% | |||||||||
Russell 2000® Index* | 6.71% | 0.68% | 7.02% | |||||||||
Lipper Small-Cap Core Funds Classification Average* | 7.31% | 1.13% | 7.31% | |||||||||
Class B Shares w/o CDSC** | 5.39% | -0.42% | 6.58% | |||||||||
Class B Shares w/CDSC** | 0.39% | -0.57% | 6.58% | |||||||||
Class C Shares | 5.35% | -0.42% | 6.59% | |||||||||
Class R3 Shares | 5.85% | 0.08% | 7.20% | |||||||||
Class I Shares | 6.36% | 0.58% | 7.65% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -3.96% | -1.95% | 6.65% | |||||||||
Class A Shares at maximum Offering Price | -9.50% | -3.11% | 6.02% | |||||||||
Class B Shares w/o CDSC** | -4.77% | -2.71% | 5.85% | |||||||||
Class B Shares w/CDSC** | -9.53% | -2.86% | 5.85% | |||||||||
Class C Shares | -4.65% | -2.68% | 5.87% | |||||||||
Class R3 Shares | -4.24% | -2.21% | 6.46% | |||||||||
Class I Shares | -3.73% | -1.72% | 6.92% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.35% | |||
Class B Shares | 2.10% | |||
Class C Shares | 2.10% | |||
Class R3 Shares | 1.60% | |||
Class I Shares | 1.10% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B shares are not available for new accounts or for additional investment into existing accounts. |
| 18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 19 |
Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen Large Cap Select Fund
Portfolio Allocation1
Nuveen Mid Cap Select Fund
Portfolio Allocation1
Nuveen Small Cap Select Fund
Portfolio Allocation1
| Portfolio Composition1 | ||||
| Consumer Discretionary | 22.9% | |||
| Information Technology | 18.2% | |||
| Financials | 15.8% | |||
| Energy | 15.0% | |||
| Industrials | 9.3% | |||
| Health Care | 9.1% | |||
| Short-Term Investments | 0.7% | |||
| Other | 9.0% | |||
| Portfolio Composition1 | ||||
| Consumer Discretionary | 33.6% | |||
| Financials | 17.1% | |||
| Information Technology | 13.3% | |||
| Heath Care | 8.7% | |||
| Industrials | 7.8% | |||
| Consumer Staples | 5.1% | |||
| Short-Term Investments | 1.8% | |||
| Other | 12.6% | |||
| Portfolio Composition1 | ||||
| Financials | 18.8% | |||
| Information Technology | 16.7% | |||
| Industrials | 16.4% | |||
| Consumer Discretionary | 14.5% | |||
| Heath Care | 12.4% | |||
| Energy | 9.0% | |||
| Short-Term | 2.5% | |||
| Other | 9.7% | |||
| Top Five Common Stock Holdings2 | ||||
| Apple | 5.4% | |||
| Wells Fargo | 3.4% | |||
| Schlumberger | 3.1% | |||
| JPMorgan Chase | 2.9% | |||
| Bank of America | 2.8% | |||
| Top Five Common Stock Holdings2 | ||||
| lululemon Athletica | 3.5% | |||
| Dollar Tree | 2.9% | |||
| Electronic Arts | 2.7% | |||
| Joy Global | 2.6% | |||
| Concho Resources | 2.4% | |||
| Top Five Common Stock Holdings2 | ||||
| Umpqua Holdings | 2.3% | |||
| Parker Drilling | 2.0% | |||
| MasTec | 1.8% | |||
| Energy XXI | 1.8% | |||
| Thoratec | 1.7% | |||
| 1 | As a percentage of total investments (excluding investments purchased with collateral from securities lending) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 20 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Select Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 866.30 | $ | 863.00 | $ | 864.90 | $ | 867.00 | $ | 1,019.41 | $ | 1,015.63 | $ | 1,018.15 | $ | 1,020.52 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 5.41 | $ | 8.92 | $ | 6.58 | $ | 4.38 | $ | 5.85 | $ | 9.65 | $ | 7.12 | $ | 4.74 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.15%, 1.90%, 1.40% and .93% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Mid Cap Select Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 863.40 | $ | 859.90 | $ | 859.70 | $ | 864.00 | $ | 1,018.10 | $ | 1,014.27 | $ | 1,014.32 | $ | 1,019.36 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 6.62 | $ | 10.17 | $ | 10.12 | $ | 5.45 | $ | 7.17 | $ | 11.02 | $ | 10.97 | $ | 5.90 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.41%, 2.16%, 2.16% and 1.16% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Select Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 850.30 | $ | 847.40 | $ | 847.40 | $ | 848.80 | $ | 851.00 | $ | 1,018.35 | $ | 1,014.57 | $ | 1,014.62 | $ | 1,017.14 | $ | 1,019.61 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.39 | $ | 9.83 | $ | 9.78 | $ | 7.46 | $ | 5.18 | $ | 6.92 | $ | 10.71 | $ | 10.66 | $ | 8.13 | $ | 5.65 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.36%, 2.11%, 2.10%, 1.60% and 1.11% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 21 |
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Nuveen Large Cap Select Fund (formerly First American Large Cap Select Fund)
Nuveen Mid Cap Select Fund (formerly First American Mid Cap Select Fund)
Nuveen Small Cap Select Fund (formerly First American Small Cap Select Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Nuveen Large Cap Select Fund (formerly First American Large Cap Select Fund), Nuveen Mid Cap Select Fund (formerly First American Mid Cap Select Fund), and Nuveen Small Cap Select Fund (formerly First American Small Cap Select Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the ”Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen Large Cap Select Fund (formerly First American Large Cap Select Fund), Nuveen Mid Cap Select Fund (formerly First American Mid Cap Select Fund), and Nuveen Small Cap Select Fund (formerly First American Small Cap Select Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| 22 | Nuveen Investments |
Nuveen Large Cap Select Fund
(formerly known as First American Large Cap Select Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 100.0% | ||||||||||||||
Consumer Discretionary – 23.1% | ||||||||||||||
| 55,005 | D.R. Horton | $ | 612,206 | |||||||||||
| 16,900 | DIRECTV, Class A q — | 768,274 | ||||||||||||
| 16,266 | Discovery Communications, Class A q — | 706,920 | ||||||||||||
| 46,393 | Foot Locker q | 1,014,151 | ||||||||||||
| 54,264 | International Game Technology | 954,504 | ||||||||||||
| 34,806 | Jarden q | 1,114,836 | ||||||||||||
| 55,589 | Macy’s | 1,697,132 | ||||||||||||
| 19,487 | Nordstrom q | 987,796 | ||||||||||||
| 27,460 | Polaris Industries | 1,739,317 | ||||||||||||
| 32,927 | Starbucks | 1,394,129 | ||||||||||||
| 19,453 | WABCO Holdings — | 976,735 | ||||||||||||
| 28,399 | Williams-Sonoma q | 1,066,099 | ||||||||||||
| 34,675 | Wyndham Worldwide | 1,167,507 | ||||||||||||
Total Consumer Discretionary | 14,199,606 | |||||||||||||
Consumer Staples – 1.0% | ||||||||||||||
| 16,712 | Dr. Pepper Snapple Group q | 625,864 | ||||||||||||
Energy – 15.1% | ||||||||||||||
| 15,297 | Anadarko Petroleum | 1,200,815 | ||||||||||||
| 15,455 | Baker Hughes | 896,235 | ||||||||||||
| 29,161 | Halliburton | 1,089,455 | ||||||||||||
| 15,527 | Hess | 971,369 | ||||||||||||
| 10,483 | Noble Energy | 936,551 | ||||||||||||
| 6,775 | Occidental Petroleum | 629,669 | ||||||||||||
| 9,856 | Pioneer Natural Resources q | 826,918 | ||||||||||||
| 25,836 | Schlumberger q | 1,898,171 | ||||||||||||
| 10,383 | SM Energy | 860,855 | ||||||||||||
Total Energy | 9,310,038 | |||||||||||||
Financials – 15.9% | ||||||||||||||
| 29,610 | Capital One Financial q | 1,351,993 | ||||||||||||
| 44,765 | Citigroup | 1,414,126 | ||||||||||||
| 81,124 | Fifth Third Bancorp | 974,299 | ||||||||||||
| 51,611 | JPMorgan Chase | 1,793,999 | ||||||||||||
| 18,596 | Prudential Financial | 1,007,903 | ||||||||||||
| 88,263 | SLM | 1,206,555 | ||||||||||||
| 79,822 | Wells Fargo | 2,068,188 | ||||||||||||
Total Financials | 9,817,063 | |||||||||||||
Health Care – 9.2% | ||||||||||||||
| 11,823 | Allergan q | 994,551 | ||||||||||||
| 24,173 | Gilead Sciences — | 1,007,047 | ||||||||||||
| 9,009 | Humana | 764,774 | ||||||||||||
| 9,703 | Perrigo q | 875,987 | ||||||||||||
| 58,573 | Pfizer | 1,128,116 | ||||||||||||
| 18,273 | UnitedHealth Group | 876,921 | ||||||||||||
Total Health Care | 5,647,396 | |||||||||||||
| Nuveen Investments | 23 |
Portfolio of Investments
Nuveen Large Cap Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Industrials – 9.3% | ||||||||||||||||
| 24,991 | Boeing | $ | 1,644,158 | |||||||||||||
| 19,287 | Dover | 1,071,007 | ||||||||||||||
| 20,725 | Emerson Electric q | 997,287 | ||||||||||||||
| 33,059 | Ingersoll-Rand q | 1,029,127 | ||||||||||||||
| 22,099 | Tyco International | 1,006,609 | ||||||||||||||
Total Industrials | 5,748,188 | |||||||||||||||
Information Technology – 18.4% | ||||||||||||||||
| 8,285 | Apple — | 3,353,602 | ||||||||||||||
| 17,544 | Check Point Software Technologies q — | 1,011,061 | ||||||||||||||
| 32,342 | Cypress Semiconductor | 618,056 | ||||||||||||||
| 55,940 | Electronic Arts q — | 1,306,199 | ||||||||||||||
| 44,641 | Intel q | 1,095,490 | ||||||||||||||
| 4,317 | MasterCard, Class A | 1,499,035 | ||||||||||||||
| 15,444 | Novellus Systems — | 533,590 | ||||||||||||||
| 20,816 | QUALCOMM | 1,074,106 | ||||||||||||||
| 13,661 | Teradata q — | 815,015 | ||||||||||||||
Total Information Technology | 11,306,154 | |||||||||||||||
Materials – 3.7% | ||||||||||||||||
| 28,530 | Dow Chemical | 795,416 | ||||||||||||||
| 26,437 | Freeport-McMoRan Copper & Gold | 1,064,354 | ||||||||||||||
| 5,833 | Walter Energy | 441,266 | ||||||||||||||
Total Materials | 2,301,036 | |||||||||||||||
Telecommunication Services – 4.3% | ||||||||||||||||
| 18,643 | American Tower, Class A — | 1,027,229 | ||||||||||||||
| 43,705 | Verizon Communications q | 1,616,211 | ||||||||||||||
Total Telecommunication Services | 2,643,440 | |||||||||||||||
Total Common Stocks (cost $58,727,567) | 61,598,785 | |||||||||||||||
| Shares | Description p | Value | ||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 27.2% | ||||||||||||||||
Money Market Funds – 27.2% | ||||||||||||||||
| 16,724,025 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W† | 16,724,025 | ||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $16,724,025) | 16,724,025 | |||||||||||||||
| Shares | Description p | Value | ||||||||||||||
SHORT-TERM INVESTMENTS – 0.7% | ||||||||||||||||
Money Market Funds – 0.7% | ||||||||||||||||
| 419,012 | First American Treasury Obligations Fund, Class Z, 0.000% W | 419,012 | ||||||||||||||
Total Short-Term Investments (cost $419,012) | 419,012 | |||||||||||||||
Total Investments (cost $75,870,604) – 127.9% | 78,741,822 | |||||||||||||||
Other Assets Less Liabilities – (27.9)% | (17,194,872) | |||||||||||||||
Net Assets – 100.0% | $ | 61,546,950 | ||||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
See accompanying notes to financial statements.
| 24 | Nuveen Investments |
Portfolio of Investments
Nuveen Mid Cap Select Fund
(formerly known as First American Mid Cap Select Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 98.5% | ||||||||||||||||
Consumer Discretionary – 33.7% | ||||||||||||||||
| 4,211 | Abercrombie & Fitch, Class A q | $ | 313,298 | |||||||||||||
| 13,088 | Ascena Retail Group q — | 378,243 | ||||||||||||||
| 24,702 | CBS, Class B q | 637,559 | ||||||||||||||
| 1,853 | Chipotle Mexican Grill, Class A q — | 622,830 | ||||||||||||||
| 8,667 | Discovery Communications, Class A — | 376,668 | ||||||||||||||
| 10,582 | Dollar Tree — | 846,137 | ||||||||||||||
| 24,640 | Foot Locker q | 538,630 | ||||||||||||||
| 30,089 | International Game Technology | 529,266 | ||||||||||||||
| 18,087 | lululemon Athletica q — | 1,021,554 | ||||||||||||||
| 18,874 | Macy’s q | 576,223 | ||||||||||||||
| 9,319 | Polaris Industries | 590,265 | ||||||||||||||
| 846 | Priceline.com q — | 429,531 | ||||||||||||||
| 5,770 | Tupperware Brands | 326,236 | ||||||||||||||
| 8,747 | ULTA Salon, Comsmetics & Fragrance q — | 588,586 | ||||||||||||||
| 7,320 | WABCO Holdings — | 367,537 | ||||||||||||||
| 6,794 | Weight Watchers International q | 506,968 | ||||||||||||||
| 19,770 | Wyndham Worldwide | 665,656 | ||||||||||||||
| 3,739 | Wynn Resorts | 496,539 | ||||||||||||||
| 6,101 | Yum! Brands | 326,831 | ||||||||||||||
Total Consumer Discretionary | 10,138,557 | |||||||||||||||
Consumer Staples – 4.6% | ||||||||||||||||
| 14,478 | Dr. Pepper Snapple Group q | 542,201 | ||||||||||||||
| 4,794 | Estee Lauder, Class A | 471,969 | ||||||||||||||
| 21,192 | Spartan Stores | 362,807 | ||||||||||||||
Total Consumer Staples | 1,376,977 | |||||||||||||||
Energy – 4.3% | ||||||||||||||||
| 7,656 | Concho Resources q — | 725,177 | ||||||||||||||
| 6,747 | Pioneer Natural Resources q | 566,073 | ||||||||||||||
Total Energy | 1,291,250 | |||||||||||||||
Financials – 17.0% | ||||||||||||||||
| 13,127 | American Campus Communities – REIT q | 511,034 | ||||||||||||||
| 9,209 | Ameriprise Financial | 429,876 | ||||||||||||||
| 24,857 | Cardtronics — | 619,685 | ||||||||||||||
| 63,037 | CNO Financial Group q — | 393,981 | ||||||||||||||
| 12,371 | Community Bank System q | 316,203 | ||||||||||||||
| 45,843 | Cubesmart – REIT q | 449,720 | ||||||||||||||
| 27,813 | Discover Financial Services | 655,274 | ||||||||||||||
| 5,087 | Federal Realty Investment Trust – REIT q | 451,522 | ||||||||||||||
| 19,144 | Lincoln National q | 364,693 | ||||||||||||||
| 6,179 | Prudential Financial | 334,902 | ||||||||||||||
| 10,694 | Waddell & Reed Financial, Class A | 296,545 | ||||||||||||||
| 14,957 | Webster Financial | 293,756 | ||||||||||||||
Total Financials | 5,117,191 | |||||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments
Nuveen Mid Cap Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
Health Care – 8.8% | ||||||||||||||||
| 8,183 | Alexion Pharmaceuticals — | $ | 552,434 | |||||||||||||
| 21,621 | Align Technology q — | 497,932 | ||||||||||||||
| 12,454 | AmerisourceBergen q | 508,123 | ||||||||||||||
| 6,879 | Humana | 583,958 | ||||||||||||||
| 5,448 | Perrigo q | 491,846 | ||||||||||||||
Total Heath Care | 2,634,293 | |||||||||||||||
Industrials – 7.8% | ||||||||||||||||
| 60,760 | CBIZ q — | 384,611 | ||||||||||||||
| 8,873 | Joy Global | 773,725 | ||||||||||||||
| 18,393 | MasTec q — | 397,657 | ||||||||||||||
| 19,355 | PHH q — | 357,100 | ||||||||||||||
| 2,678 | Precision Castparts | 436,916 | ||||||||||||||
Total Industrials | 2,350,009 | |||||||||||||||
Information Technology – 13.4% | ||||||||||||||||
| 8,992 | Altera q | 340,977 | ||||||||||||||
| 33,876 | Electronic Arts q — | 791,005 | ||||||||||||||
| 15,338 | MKS Instruments | 408,604 | ||||||||||||||
| 16,301 | National Instruments q | 435,400 | ||||||||||||||
| 18,273 | Plantronics q | 610,501 | ||||||||||||||
| 12,110 | Red Hat — | 601,261 | ||||||||||||||
| 8,500 | Teradata q — | 507,110 | ||||||||||||||
| 15,483 | Vocus — | 315,543 | ||||||||||||||
Total Information Technology | 4,010,401 | |||||||||||||||
Materials – 2.3% | ||||||||||||||||
| 7,013 | Albemarle | 373,723 | ||||||||||||||
| 7,506 | Celanese, Class A | 326,886 | ||||||||||||||
Total Materials | 700,609 | |||||||||||||||
Telecommunication Services – 1.5% | ||||||||||||||||
| 8,162 | American Tower, Class A — | 449,726 | ||||||||||||||
Utilities – 5.1% | ||||||||||||||||
| 30,029 | CMS Energy q | 625,204 | ||||||||||||||
| 9,705 | OGE Energy q | 502,137 | ||||||||||||||
| 12,275 | Public Service Enterprise Group | 413,666 | ||||||||||||||
Total Utilities | 1,541,007 | |||||||||||||||
Total Common Stocks (cost $27,213,797) | 29,610,020 | |||||||||||||||
| Shares | Description p | Value | ||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 43.4% | ||||||||||||||||
Money Market Funds – 43.4% | ||||||||||||||||
| 13,037,510 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | 13,037,510 | ||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $13,037,510) | 13,037,510 | |||||||||||||||
| Shares | Description p | Value | ||||||||||||||
SHORT-TERM INVESTMENTS – 1.8% | ||||||||||||||||
Money Market Funds – 1.8% | ||||||||||||||||
| 535,833 | First American Treasury Obligations Fund, Class Z, 0.000% W | 535,833 | ||||||||||||||
Total Short-Term Investments (cost $535,833) | 535,833 | |||||||||||||||
Total Investments (cost $40,787,140)- 143.7% | 43,183,363 | |||||||||||||||
Other Assets Less Liabilities – (43.7)% | (13,132,587) | |||||||||||||||
Net Assets – 100.0% | $ | 30,050,776 | ||||||||||||||
| 26 | Nuveen Investments |
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 27 |
Portfolio of Investments
Nuveen Small Cap Select Fund
(formerly known as First American Small Cap Select Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 95.9% | ||||||||||||||||
Consumer Discretionary – 14.2% | ||||||||||||||||
| 228,742 | Ann q — | $ | 6,093,687 | |||||||||||||
| 184,080 | Ascena Retail Group q — | 5,319,912 | ||||||||||||||
| 185,409 | Bravo Brio Restaurant Group q — | 3,602,497 | ||||||||||||||
| 329,675 | Brunswick q | 5,822,061 | ||||||||||||||
| 61,733 | Buffalo Wild Wings q — | 4,087,959 | ||||||||||||||
| 195,914 | Coinstar q — | 9,352,934 | ||||||||||||||
| 303,320 | Gaylord Entertainment q — | 7,094,655 | ||||||||||||||
| 216,160 | Life Time Fitness q — | 9,322,981 | ||||||||||||||
| 50,642 | Panera Bread, Class A — | 6,770,329 | ||||||||||||||
| 66,471 | Pool q | 1,942,283 | ||||||||||||||
| 247,641 | ReachLocal q — | 2,478,886 | ||||||||||||||
| 389,110 | Texas Roadhouse q — | 5,575,946 | ||||||||||||||
| 186,587 | Valassis Communications q — | 3,644,044 | ||||||||||||||
| 104,415 | Warnaco Group q — | 5,126,777 | ||||||||||||||
| 323,967 | Zumiez q — | 7,370,249 | ||||||||||||||
Total Consumer Discretionary | 83,605,200 | |||||||||||||||
Consumer Staples – 2.5% | ||||||||||||||||
| 89,699 | Chef’s Warehouse Holdings q — | 1,281,799 | ||||||||||||||
| 153,347 | Hain Celestial Group — | 5,146,325 | ||||||||||||||
| 1,225,875 | Smart Balance q — | 8,029,481 | ||||||||||||||
Total Consumer Staples | 14,457,605 | |||||||||||||||
Energy – 8.8% | ||||||||||||||||
| 84,602 | Carrizo Oil & Gas — | 2,301,174 | ||||||||||||||
| 347,813 | Energy XXI q — | 10,215,268 | ||||||||||||||
| 188,433 | GeoResources q — | 5,001,012 | ||||||||||||||
| 422,061 | Goodrich Petroleum q — | 6,689,667 | ||||||||||||||
| 625,578 | Key Energy Services q — | 8,088,724 | ||||||||||||||
| 27,472 | Lufkin Industries q | 1,623,320 | ||||||||||||||
| 702,103 | Newpark Resources q — | 6,269,780 | ||||||||||||||
| 2,087,042 | Parker Drilling q — | 11,541,342 | ||||||||||||||
Total Energy | 51,730,287 | |||||||||||||||
Financials – 18.5% | ||||||||||||||||
| 295,180 | Bank of the Ozarks q | 7,341,127 | ||||||||||||||
| 540,180 | Calamos Asset Management, Class A | 6,746,848 | ||||||||||||||
| 367,446 | Delphi Financial Group, Class A q | 9,729,970 | ||||||||||||||
| 134,643 | EastGroup Properties – REIT q | 5,871,781 | ||||||||||||||
| 291,113 | Evercore Partners, Class A | 7,988,141 | ||||||||||||||
| 110,680 | Financial Engines q — | 2,513,543 | ||||||||||||||
| 316,124 | Home Bancshares | 7,413,108 | ||||||||||||||
| 97,995 | Independent Bank q | 2,540,030 | ||||||||||||||
| 451,139 | Knight Capital Group, Class A q — | 5,634,726 | ||||||||||||||
| 1,328,333 | MGIC Investment q — | 3,533,366 | ||||||||||||||
| 274,836 | National Retail Properties – REIT q | 7,489,281 | ||||||||||||||
| 717,417 | Netspend Holdings q — | 4,125,148 | ||||||||||||||
| 170,687 | PS Business Parks – REIT | 9,085,669 | ||||||||||||||
| 55,050 | Stifel Financial — | 1,754,443 | ||||||||||||||
| 213,766 | Terreno Realty – REIT q | 2,661,387 | ||||||||||||||
| 1,148,382 | Umpqua Holdings q | 13,148,974 | ||||||||||||||
| 317,909 | Waddell & Reed Financial, Class A q | 8,815,616 | ||||||||||||||
| 95,969 | Walter Investment Management | 2,433,774 | ||||||||||||||
Total Financials | 108,826,932 | |||||||||||||||
| 28 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||||
Health Care – 12.2% | ||||||||||||||||
| 60,048 | Alkermes q — | $ | 1,050,240 | |||||||||||||
| 161,454 | Align Technology — | 3,718,286 | ||||||||||||||
| 65,606 | Ariad Pharmaceuticals q — | 762,998 | ||||||||||||||
| 397,021 | Cadence Pharmaceuticals q — | 2,314,632 | ||||||||||||||
| 103,147 | Cepheid q — | 3,700,914 | ||||||||||||||
| 39,108 | Cubist Pharmaceuticals q — | 1,478,673 | ||||||||||||||
| 290,015 | Endologix q — | 3,158,263 | ||||||||||||||
| 39,403 | Haemonetics — | 2,401,613 | ||||||||||||||
| 43,307 | ImmunoGen q — | 588,109 | ||||||||||||||
| 87,642 | Incyte q — | 1,206,830 | ||||||||||||||
| 119,184 | Integra LifeSciences — | 3,821,039 | ||||||||||||||
| 26,202 | InterMune q — | 668,151 | ||||||||||||||
| 134,522 | MEDNAX — | 8,851,548 | ||||||||||||||
| 158,312 | Nektar Therapeutics q — | 858,051 | ||||||||||||||
| 52,915 | Onyx Pharmaceuticals — | 2,165,811 | ||||||||||||||
| 238,509 | Salix Pharmaceuticals q — | 8,170,126 | ||||||||||||||
| 51,366 | Seattle Genetics q — | 1,130,052 | ||||||||||||||
| 137,071 | Sirona Dental Systems — | 6,565,701 | ||||||||||||||
| 84,665 | Theravance q — | 1,882,103 | ||||||||||||||
| 268,998 | Thoratec q — | 9,821,117 | ||||||||||||||
| 136,012 | U.S. Physical Therapy — | 2,654,954 | ||||||||||||||
| 121,650 | Zoll Medical q — | 4,599,587 | ||||||||||||||
Total Heath Care | 71,568,798 | |||||||||||||||
Industrials – 16.2% | ||||||||||||||||
| 279,178 | Actuant, Class A q | 6,281,505 | ||||||||||||||
| 342,438 | Aeroflex Holding — | 3,729,150 | ||||||||||||||
| 55,067 | Allegiant Travel q — | 2,861,281 | ||||||||||||||
| 500,226 | Altra Holdings q — | 7,353,322 | ||||||||||||||
| 570,021 | CBIZ q — | 3,608,233 | ||||||||||||||
| 107,143 | Con-way | 3,157,504 | ||||||||||||||
| 167,794 | ESCO Technologies — | 5,129,463 | ||||||||||||||
| 479,217 | MasTec q — | 10,360,672 | ||||||||||||||
| 297,918 | MYR Group — | 5,746,838 | ||||||||||||||
| 162,066 | Old Dominion Freight Line q — | 5,926,754 | ||||||||||||||
| 588,039 | Orbital Sciences q — | 9,091,083 | ||||||||||||||
| 146,870 | Regal-Beloit | 7,803,203 | ||||||||||||||
| 143,107 | Robbins & Myers | 6,395,452 | ||||||||||||||
| 671,749 | TrueBlue — | 8,880,522 | ||||||||||||||
| 366,911 | United Rentals q — | 8,589,386 | ||||||||||||||
Total Industrials | 94,914,368 | |||||||||||||||
Information Technology – 16.5% | ||||||||||||||||
| 146,362 | ADTRAN | 4,917,763 | ||||||||||||||
| 800,197 | Brocade Communications Systems — | 3,504,863 | ||||||||||||||
| 77,545 | CommVault Systems q — | 3,301,866 | ||||||||||||||
| 422,612 | Euronet Worldwide q — | 8,185,994 | ||||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments
Nuveen Small Cap Select Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 240,692 | Finisar q — | $ | 4,931,779 | |||||||||||
| 67,553 | Infinera q — | 493,812 | ||||||||||||
| 1,097,179 | Integrated Device Technology q — | 6,670,848 | ||||||||||||
| 317,841 | International Rectifier — | 7,720,358 | ||||||||||||
| 218,056 | Kenexa — | 4,986,941 | ||||||||||||
| 601,048 | Newport — | 8,324,515 | ||||||||||||
| 284,647 | Polycom q — | 4,705,215 | ||||||||||||
| 249,825 | Progress Software — | 5,261,315 | ||||||||||||
| 183,486 | QuinStreet q — | 2,108,254 | ||||||||||||
| 1,249,774 | RF Micro Devices q — | 9,173,341 | ||||||||||||
| 888,334 | Smith Micro Software q — | 1,039,351 | ||||||||||||
| 166,441 | Sourcefire q — | 4,585,450 | ||||||||||||
| 87,075 | SPS Commerce — | 1,703,187 | ||||||||||||
| 263,836 | Taleo, Class A q — | 8,548,286 | ||||||||||||
| 336,382 | Vocus — | 6,855,465 | ||||||||||||
Total Information Technology | 97,018,603 | |||||||||||||
Materials – 4.6% | ||||||||||||||
| 253,465 | Buckeye Technologies q | 7,664,782 | ||||||||||||
| 498,155 | Horsehead Holding q — | 4,323,985 | ||||||||||||
| 95,413 | Minerals Technologies | 5,232,449 | ||||||||||||
| 106,767 | Rock-Tenn, Class A | 6,319,539 | ||||||||||||
| 71,605 | Schnitzer Steel Industries, Class A q | �� | 3,351,114 | |||||||||||
Total Materials | 26,891,869 | |||||||||||||
Telecommunication Services – 2.4% | ||||||||||||||
| 774,952 | Cbeyond q — | 6,385,604 | ||||||||||||
| 484,512 | Cogent Communications Group q — | 7,776,418 | ||||||||||||
Total Telecommunication Services | 14,162,022 | |||||||||||||
Total Common Stocks (cost $536,880,154) | 563,175,684 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 44.6% | ||||||||||||||
Money Market Funds – 44.6% | ||||||||||||||
| 261,531,366 | Mount Vernon Securities Lending Prime Portfolio 0.200% W † | 261,531,366 | ||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $261,531,366) | 261,531,366 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 2.4% | ||||||||||||||
Money Market Funds – 2.4% | ||||||||||||||
| 14,159,061 | First American Treasury Obligations Fund, Class Z, 0.000% W | 14,159,061 | ||||||||||||
Total Short-Term Investments (cost $14,159,061) | 14,159,061 | |||||||||||||
Total Investments (cost $812,570,581) – 142.9% | 838,866,111 | |||||||||||||
Other Assets Less Liabilities – (42.9)% | (251,969,960) | |||||||||||||
Net Assets – 100.0% | $ | 586,896,151 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| 30 | Nuveen Investments |
Statement of Assets & Liabilities
October 31, 2011 (all dollars and shares are rounded to thousands (000), except for per share data)
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Assets | ||||||||||||
Investments, at value (cost $59,147, $27,750 and $551,039, respectively) | $ | 62,018 | $ | 30,146 | $ | 577,335 | ||||||
Investment purchased with collateral from securities lending (at cost, which approximates value) | 16,724 | 13,038 | 261,531 | |||||||||
Receivables: | ||||||||||||
Dividends | 50 | 9 | 175 | |||||||||
Due from broker | 2 | 1 | 104 | |||||||||
From Adviser | — | 27 | — | |||||||||
Investments sold | 1,313 | — | 16,917 | |||||||||
Shares sold | — | 1 | 2,925 | |||||||||
Other assets | 46 | 34 | 59 | |||||||||
Total assets | 80,153 | 43,256 | 859,046 | |||||||||
Liabilities | ||||||||||||
Payables: | ||||||||||||
Collateral from securities lending program | 16,724 | 13,038 | 261,531 | |||||||||
Investments purchased | 1,670 | — | 8,857 | |||||||||
Shares redeemed | 87 | 45 | 696 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 41 | — | 433 | |||||||||
12b-1 distribution and service fees | 1 | 4 | 76 | |||||||||
Other | 83 | 118 | 557 | |||||||||
Total liabilities | 18,606 | 13,205 | 272,150 | |||||||||
Net assets | $ | 61,547 | $ | 30,051 | $ | 586,896 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 2,938 | $ | 10,829 | $ | 275,994 | ||||||
Shares outstanding | 251 | 1,143 | 22,193 | |||||||||
Net asset value per share | $ | 11.73 | $ | 9.48 | $ | 12.44 | ||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 12.45 | $ | 10.06 | $ | 13.20 | ||||||
Class B Shares | ||||||||||||
Net assets | N/A | $ | 805 | $ | 2,866 | |||||||
Shares outstanding | N/A | 101 | 293 | |||||||||
Net asset value and offering price per share | N/A | $ | 7.98 | $ | 9.77 | |||||||
Class C Shares | ||||||||||||
Net assets | $ | 183 | $ | 1,771 | $ | 14,009 | ||||||
Shares outstanding | 16 | 204 | 1,249 | |||||||||
Net asset value and offering price per share | $ | 11.21 | $ | 8.70 | $ | 11.22 | ||||||
Class R3 Shares(1) | ||||||||||||
Net assets | $ | 112 | N/A | $ | 20,044 | |||||||
Shares outstanding | 10 | N/A | 1,653 | |||||||||
Net asset value and offering price per share | $ | 11.59 | N/A | $ | 12.13 | |||||||
Class I Shares(1) | ||||||||||||
Net assets | $ | 58,314 | $ | 16,646 | $ | 273,983 | ||||||
Shares outstanding | 4,941 | 1,680 | 20,234 | |||||||||
Net asset value and offering price per share | $ | 11.80 | $ | 9.91 | $ | 13.54 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 135,096 | $ | 51,200 | $ | 550,332 | ||||||
Undistributed (Over-distribution of) net investment income | (11 | ) | (10 | ) | (15 | ) | ||||||
Accumulated net realized gain (loss) | (76,409 | ) | (23,535 | ) | 10,283 | |||||||
Net unrealized appreciation (depreciation) | 2,871 | 2,396 | 26,296 | |||||||||
Net assets | $ | 61,547 | $ | 30,051 | $ | 586,896 | ||||||
Authorized shares | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | ||||||
| N/A - | Large Cap Select does not offer Class B Shares and Mid Cap Select does not offer Class R3 Shares. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 31 |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income from unaffiliated investments (net of foreign tax withheld of $10, $– and $–, respectively) | $ | 1,041 | $ | 332 | $ | 3,317 | ||||||
Interest income from affiliated investments(1) | — | — | 2 | |||||||||
Securities lending income | 25 | 16 | 834 | |||||||||
Total investment income | 1,066 | 348 | 4,153 | |||||||||
Expenses | ||||||||||||
Management fees | 754 | 321 | 5,850 | |||||||||
12b-1 service fees – Class A | 9 | 31 | 811 | |||||||||
12b-1 distribution and service fees – Class B | N/A | 11 | 36 | |||||||||
12b-1 distribution and service fees – Class C | 2 | 22 | 175 | |||||||||
12b-1 distribution and service fees – Class R3(2) | 1 | N/A | 103 | |||||||||
Administration fees(1) | 51 | 17 | 302 | |||||||||
Shareholders’ servicing agent fees and expenses | 39 | 151 | 853 | |||||||||
Custodian’s fees and expenses | 29 | 16 | 112 | |||||||||
Directors’ fees and expenses | 7 | 5 | 19 | |||||||||
Professional fees | 31 | 31 | 31 | |||||||||
Shareholders’ reports – printing and mailing expenses | 15 | 29 | 281 | |||||||||
Federal and state registration fees | 61 | 58 | 93 | |||||||||
Other expenses | 8 | 9 | 23 | |||||||||
Total expenses before expense reimbursement | 1,007 | 701 | 8,689 | |||||||||
Expense reimbursement | — | (205 | ) | (303 | ) | |||||||
Net expenses | 1,007 | 496 | 8,386 | |||||||||
Net investment income (loss) | 59 | (148 | ) | (4,233 | ) | |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments | 17,580 | 3,661 | 112,702 | |||||||||
Futures contracts | — | 253 | — | |||||||||
Redemptions in-kind | 3,120 | — | 14,573 | |||||||||
Change in net unrealized appreciation (depreciation) of investments | (16,096 | ) | (2,659 | ) | (67,224 | ) | ||||||
Net realized and unrealized gain (loss) | 4,604 | 1,255 | 60,051 | |||||||||
Net increase (decrease) in net assets from operations | $ | 4,663 | $ | 1,107 | $ | 55,818 | ||||||
| N/A | - Large Cap Select does not offer Class B Shares and Mid Cap Select does not offer Class R3 Shares. |
| (1) | - For the period November 1, 2010 through December 31, 2010. |
| (2) | - Effective January 18, 2011, Class R Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares. |
See accompanying notes to financial statements.
| 32 | Nuveen Investments |
Statement of Changes in Net Assets (all dollars are rounded to thousands (000))
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | 59 | $ | 285 | $ | (148 | ) | $ | (82 | ) | $ | (4,233 | ) | $ | (2,819 | ) | ||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments | 17,580 | 26,152 | 3,661 | 6,634 | 112,702 | 92,494 | ||||||||||||||||||
Futures contracts | — | — | 253 | — | — | — | ||||||||||||||||||
Redemptions in-kind | 3,120 | — | — | — | 14,573 | — | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | (16,096 | ) | 483 | (2,659 | ) | 1,905 | (67,224 | ) | 60,772 | |||||||||||||||
Net increase (decrease) in net assets from operations | 4,663 | 26,920 | 1,107 | 8,457 | 55,818 | 150,447 | ||||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||||||
From net investment income: | ||||||||||||||||||||||||
Class A | — | (19 | ) | — | (37 | ) | — | — | ||||||||||||||||
Class B | N/A | N/A | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class R3(1) | — | — | N/A | N/A | — | — | ||||||||||||||||||
Class I(1) | (150 | ) | (1,121 | ) | — | (127 | ) | — | (184 | ) | ||||||||||||||
Decrease in net assets from distributions to shareholders | (150 | ) | (1,140 | ) | — | (164 | ) | — | (184 | ) | ||||||||||||||
Fund Share Transactions | ||||||||||||||||||||||||
Proceeds from sale of shares | 4,583 | 18,542 | 2,537 | 3,609 | 188,172 | 232,850 | ||||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 73 | 545 | — | 66 | — | 133 | ||||||||||||||||||
| 4,656 | 19,087 | 2,537 | 3,675 | 188,172 | 232,983 | |||||||||||||||||||
Cost of shares redeemed | (66,858 | ) | (61,060 | ) | (12,698 | ) | (16,597 | ) | (386,973 | ) | (269,169 | ) | ||||||||||||
Cost of redemptions in-kind | (15,346 | ) | — | — | — | (49,354 | ) | — | ||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (77,548 | ) | (41,973 | ) | (10,161 | ) | (12,922 | ) | (248,155 | ) | (36,186 | ) | ||||||||||||
Net increase (decrease) in net assets | (73,035 | ) | (16,193 | ) | (9,054 | ) | (4,629 | ) | (192,337 | ) | 114,077 | |||||||||||||
Net assets at the beginning of period | 134,582 | 150,775 | 39,105 | 43,734 | 779,233 | 665,156 | ||||||||||||||||||
Net assets at the end of period | $ | 61,547 | $ | 134,582 | $ | 30,051 | $ | 39,105 | $ | 586,896 | $ | 779,233 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (11 | ) | $ | 66 | $ | (10 | ) | $ | (11 | ) | $ | (15 | ) | $ | (13 | ) | |||||||
| N/A - | Large Cap Select does not offer Class B Shares and Mid Cap Select does not offer Class R3 Shares. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 33 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| LARGE CAP SELECT | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (1/03) |
| |||||||||||||||||||||||||||||||
2011 | $ | 11.65 | $ | (.02 | ) | $ | .10 | $ | .08 | $ | — | $ | — | $ | — | $ | 11.73 | |||||||||||||||
2010 | 9.80 | (.01 | ) | 1.92 | 1.91 | (.06 | ) | — | (.06 | ) | 11.65 | |||||||||||||||||||||
2009 | 8.83 | .04 | .97 | 1.01 | (.04 | ) | — | (.04 | ) | 9.80 | ||||||||||||||||||||||
2008 | 17.05 | .06 | (6.04 | ) | (5.98 | ) | (.04 | ) | (2.20 | ) | (2.24 | ) | 8.83 | |||||||||||||||||||
2007 | 15.18 | .03 | 2.12 | 2.15 | (.03 | ) | (.25 | ) | (.28 | ) | 17.05 | |||||||||||||||||||||
Class C (1/03) |
| |||||||||||||||||||||||||||||||
2011 | 11.22 | (.11 | ) | .10 | (.01 | ) | — | — | — | 11.21 | ||||||||||||||||||||||
2010 | 9.46 | (.08 | ) | 1.84 | 1.76 | — | — | — | 11.22 | |||||||||||||||||||||||
2009 | 8.56 | (.02 | ) | .93 | .91 | (.01 | ) | — | (.01 | ) | 9.46 | |||||||||||||||||||||
2008 | 16.69 | (.03 | ) | (5.90 | ) | (5.93 | ) | — | (2.20 | ) | (2.20 | ) | 8.56 | |||||||||||||||||||
2007 | 14.95 | (.09 | ) | 2.08 | 1.99 | — | (.25 | ) | (.25 | ) | 16.69 | |||||||||||||||||||||
Class R3 (1/03)(e) |
| |||||||||||||||||||||||||||||||
2011 | 11.54 | (.05 | ) | .10 | .05 | — | — | — | 11.59 | |||||||||||||||||||||||
2010 | 9.74 | (.03 | ) | 1.89 | 1.86 | (.06 | ) | — | (.06 | ) | 11.54 | |||||||||||||||||||||
2009 | 8.78 | .01 | .98 | .99 | (.03 | ) | — | (.03 | ) | 9.74 | ||||||||||||||||||||||
2008 | 16.97 | .03 | (6.00 | ) | (5.97 | ) | (.02 | ) | (2.20 | ) | (2.22 | ) | 8.78 | |||||||||||||||||||
2007 | 15.12 | — | * | 2.11 | 2.11 | (.01 | ) | (.25 | ) | (.26 | ) | 16.97 | ||||||||||||||||||||
Class I (1/03)(e) |
| |||||||||||||||||||||||||||||||
2011 | 11.71 | .01 | .10 | .11 | (.02 | ) | — | (.02 | ) | 11.80 | ||||||||||||||||||||||
2010 | 9.85 | .02 | 1.92 | 1.94 | (.08 | ) | — | (.08 | ) | 11.71 | ||||||||||||||||||||||
2009 | 8.87 | .07 | .96 | 1.03 | (.05 | ) | — | (.05 | ) | 9.85 | ||||||||||||||||||||||
2008 | 17.10 | .09 | (6.05 | ) | (5.96 | ) | (.07 | ) | (2.20 | ) | (2.27 | ) | 8.87 | |||||||||||||||||||
2007 | 15.22 | .07 | 2.13 | 2.20 | (.07 | ) | (.25 | ) | (.32 | ) | 17.10 | |||||||||||||||||||||
| 34 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||
| Ratios to Average Net Assets(d) | ||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||
| .69 | % | $ | 2,938 | 1.20 | % | (.18 | )% | 139 | % | |||||||||
| 19.49 | 3,487 | 1.32 | (.06 | ) | 140 | |||||||||||||
| 11.54 | 3,292 | 1.29 | .52 | 185 | ||||||||||||||
| (39.81 | ) | 3,608 | 1.21 | .49 | 210 | |||||||||||||
| 14.36 | 7,998 | 1.19 | .20 | 138 | ||||||||||||||
| (.09 | ) | 183 | 1.95 | (.90 | ) | 139 | ||||||||||||
| 18.60 | 175 | 2.07 | (.79 | ) | 140 | |||||||||||||
| 10.64 | 186 | 2.05 | (.23 | ) | 185 | |||||||||||||
| (40.38 | ) | 180 | 1.96 | (.26 | ) | 210 | ||||||||||||
| 13.45 | 325 | 1.94 | (.57 | ) | 138 | |||||||||||||
| .43 | 112 | 1.45 | (.42 | ) | 139 | |||||||||||||
| 19.11 | 117 | 1.58 | (.32 | ) | 140 | |||||||||||||
| 11.31 | 66 | 1.56 | .12 | 185 | ||||||||||||||
| (39.94 | ) | 20 | 1.46 | .24 | 210 | |||||||||||||
| 14.09 | 37 | 1.44 | .02 | 138 | ||||||||||||||
| .89 | 58,314 | .95 | .07 | 139 | ||||||||||||||
| 19.75 | 130,803 | 1.07 | .21 | 140 | ||||||||||||||
| 11.81 | 147,231 | 1.04 | .82 | 185 | ||||||||||||||
| (39.63 | ) | 207,904 | .96 | .74 | 210 | |||||||||||||
| 14.65 | 449,201 | .94 | .45 | 138 | ||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| * | Rounds to less than $.01 per share. |
See accompanying notes to financial statements.
| Nuveen Investments | 35 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| MID CAP SELECT | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (4/94) |
| |||||||||||||||||||||||||||||||
2011 | $ | 9.31 | $ | (.05 | ) | $ | .22 | $ | .17 | $ | — | $ | — | $ | — | $ | 9.48 | |||||||||||||||
2010 | 7.65 | (.02 | ) | 1.70 | 1.68 | (.02 | ) | — | (.02 | ) | 9.31 | |||||||||||||||||||||
2009 | 7.00 | .03 | .62 | .65 | — | — | — | 7.65 | ||||||||||||||||||||||||
2008 | 10.64 | (.01 | ) | (3.63 | ) | (3.64 | ) | — | — | — | 7.00 | |||||||||||||||||||||
2007 | 9.57 | (.02 | ) | 1.09 | 1.07 | — | — | — | 10.64 | |||||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||
2011 | 7.90 | (.10 | ) | .18 | .08 | — | — | — | 7.98 | |||||||||||||||||||||||
2010 | 6.52 | (.07 | ) | 1.45 | 1.38 | — | — | — | 7.90 | |||||||||||||||||||||||
2009 | 6.01 | (.01 | ) | .52 | .51 | — | — | — | 6.52 | |||||||||||||||||||||||
2008 | 9.21 | (.07 | ) | (3.13 | ) | (3.20 | ) | — | — | — | 6.01 | |||||||||||||||||||||
2007 | 8.34 | (.08 | ) | .95 | .87 | — | — | — | 9.21 | |||||||||||||||||||||||
Class C (2/00) |
| |||||||||||||||||||||||||||||||
2011 | 8.61 | (.11 | ) | .20 | .09 | — | — | — | 8.70 | |||||||||||||||||||||||
2010 | 7.12 | (.08 | ) | 1.57 | 1.49 | — | — | — | 8.61 | |||||||||||||||||||||||
2009 | 6.56 | (.01 | ) | .57 | .56 | — | — | — | 7.12 | |||||||||||||||||||||||
2008 | 10.04 | (.08 | ) | (3.40 | ) | (3.48 | ) | — | — | — | 6.56 | |||||||||||||||||||||
2007 | 9.09 | (.09 | ) | 1.04 | .95 | — | — | — | 10.04 | |||||||||||||||||||||||
Class I (4/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 9.71 | (.02 | ) | .22 | .20 | — | — | — | 9.91 | |||||||||||||||||||||||
2010 | 7.98 | — | * | 1.77 | 1.77 | (.04 | ) | — | (.04 | ) | 9.71 | |||||||||||||||||||||
2009 | 7.31 | .06 | .64 | .70 | (.03 | ) | — | (.03 | ) | 7.98 | ||||||||||||||||||||||
2008 | 11.09 | .01 | (3.79 | ) | (3.78 | ) | — | — | — | 7.31 | ||||||||||||||||||||||
2007 | 9.95 | — | * | 1.15 | 1.15 | (.01 | ) | — | (.01 | ) | 11.09 | |||||||||||||||||||||
| 36 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 1.83 | % | $ | 10,829 | 1.97 | % | (1.04 | )% | 1.41 | % | (.48 | )% | 148 | % | |||||||||||||
| 22.03 | 12,402 | 1.98 | (.84 | ) | 1.41 | (.27 | ) | 154 | ||||||||||||||||||
| 9.32 | 12,487 | 1.92 | (.02 | ) | 1.41 | .49 | 186 | |||||||||||||||||||
| (34.21 | ) | 12,848 | 1.60 | (.32 | ) | 1.41 | (.13 | ) | 170 | |||||||||||||||||
| 11.18 | 21,817 | 1.49 | (.28 | ) | 1.41 | (.20 | ) | 151 | ||||||||||||||||||
| 1.01 | 805 | 2.70 | (1.76 | ) | 2.16 | (1.23 | ) | 148 | ||||||||||||||||||
| 21.17 | 1,295 | 2.73 | (1.59 | ) | 2.16 | (1.02 | ) | 154 | ||||||||||||||||||
| 8.49 | 1,691 | 2.67 | (.71 | ) | 2.16 | (.20 | ) | 186 | ||||||||||||||||||
| (34.74 | ) | 2,512 | 2.35 | (1.07 | ) | 2.16 | (.88 | ) | 170 | |||||||||||||||||
| 10.43 | 6,883 | 2.24 | (1.02 | ) | 2.16 | (.94 | ) | 151 | ||||||||||||||||||
| 1.05 | 1,771 | 2.71 | (1.78 | ) | 2.16 | (1.22 | ) | 148 | ||||||||||||||||||
| 20.93 | 2,332 | 2.73 | (1.60 | ) | 2.16 | (1.03 | ) | 154 | ||||||||||||||||||
| 8.54 | 2,526 | 2.67 | (.75 | ) | 2.16 | (.24 | ) | 186 | ||||||||||||||||||
| (34.66 | ) | 3,068 | 2.35 | (1.07 | ) | 2.16 | (.88 | ) | 170 | |||||||||||||||||
| 10.45 | 5,190 | 2.24 | (1.04 | ) | 2.16 | (.96 | ) | 151 | ||||||||||||||||||
| 2.06 | 16,646 | 1.71 | (.77 | ) | 1.16 | (.23 | ) | 148 | ||||||||||||||||||
| 22.26 | 23,076 | 1.73 | (.60 | ) | 1.16 | (.03 | ) | 154 | ||||||||||||||||||
| 9.62 | 27,030 | 1.67 | .30 | 1.16 | .81 | 186 | ||||||||||||||||||||
| (34.08 | ) | 40,409 | 1.35 | (.07 | ) | 1.16 | .12 | 170 | ||||||||||||||||||
| 11.62 | 79,574 | 1.24 | (.06 | ) | 1.16 | .02 | 151 | |||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class I Shares. |
| * | Rounds to less than $.01 per share. |
See accompanying notes to financial statements.
| Nuveen Investments | 37 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
SMALL CAP SELECT | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (5/92) |
| |||||||||||||||||||||||||||||||
2011 | $ | 11.72 | $ | (.09 | ) | $ | .81 | $ | .72 | $ | — | $ | — | $ | — | $ | 12.44 | |||||||||||||||
2010 | 9.53 | (.05 | ) | 2.24 | 2.19 | — | — | — | 11.72 | |||||||||||||||||||||||
2009 | 8.27 | (.01 | ) | 1.27 | 1.26 | — | — | — | 9.53 | |||||||||||||||||||||||
2008 | 14.06 | (.02 | ) | (4.92 | ) | (4.94 | ) | — | (.85 | ) | (.85 | ) | 8.27 | |||||||||||||||||||
2007 | 15.12 | (.02 | ) | 1.04 | 1.02 | — | (2.08 | ) | (2.08 | ) | 14.06 | |||||||||||||||||||||
Class B (3/95) |
| |||||||||||||||||||||||||||||||
2011 | 9.27 | (.15 | ) | .65 | .50 | — | — | — | 9.77 | |||||||||||||||||||||||
2010 | 7.60 | (.10 | ) | 1.77 | 1.67 | — | — | — | 9.27 | |||||||||||||||||||||||
2009 | 6.64 | (.05 | ) | 1.01 | .96 | — | — | — | 7.60 | |||||||||||||||||||||||
2008 | 11.56 | (.08 | ) | (3.99 | ) | (4.07 | ) | — | (.85 | ) | (.85 | ) | 6.64 | |||||||||||||||||||
2007 | 12.88 | (.11 | ) | .87 | .76 | — | (2.08 | ) | (2.08 | ) | 11.56 | |||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||
2011 | 10.65 | (.17 | ) | .74 | .57 | — | — | — | 11.22 | |||||||||||||||||||||||
2010 | 8.73 | (.12 | ) | 2.04 | 1.92 | — | — | — | 10.65 | |||||||||||||||||||||||
2009 | 7.63 | (.06 | ) | 1.16 | 1.10 | — | — | — | 8.73 | |||||||||||||||||||||||
2008 | 13.13 | (.09 | ) | (4.56 | ) | (4.65 | ) | — | (.85 | ) | (.85 | ) | 7.63 | |||||||||||||||||||
2007 | 14.36 | (.12 | ) | .97 | .85 | — | (2.08 | ) | (2.08 | ) | 13.13 | |||||||||||||||||||||
Class R3 (1/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 11.46 | (.12 | ) | .79 | .67 | — | — | — | 12.13 | |||||||||||||||||||||||
2010 | 9.34 | (.08 | ) | 2.20 | 2.12 | — | — | — | 11.46 | |||||||||||||||||||||||
2009 | 8.12 | (.03 | ) | 1.25 | 1.22 | — | — | — | 9.34 | |||||||||||||||||||||||
2008 | 13.86 | (.04 | ) | (4.85 | ) | (4.89 | ) | — | (.85 | ) | (.85 | ) | 8.12 | |||||||||||||||||||
2007 | 14.98 | (.05 | ) | 1.01 | .96 | — | (2.08 | ) | (2.08 | ) | 13.86 | |||||||||||||||||||||
Class I (5/92)(e) |
| |||||||||||||||||||||||||||||||
2011 | 12.73 | (.06 | ) | .87 | .81 | — | — | — | 13.54 | |||||||||||||||||||||||
2010 | 10.33 | (.03 | ) | 2.44 | 2.41 | (.01 | ) | — | (.01 | ) | 12.73 | |||||||||||||||||||||
2009 | 8.94 | .02 | 1.37 | 1.39 | — | — | — | 10.33 | ||||||||||||||||||||||||
2008 | 15.10 | .01 | (5.31 | ) | (5.30 | ) | (.01 | ) | (.85 | ) | (.86 | ) | 8.94 | |||||||||||||||||||
2007 | 16.06 | .01 | 1.11 | 1.12 | — | (2.08 | ) | (2.08 | ) | 15.10 | ||||||||||||||||||||||
| 38 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 6.14 | % | $ | 275,994 | 1.34 | % | (.74 | )% | 1.30 | % | (.70 | )% | 69 | % | |||||||||||||
| 22.98 | 339,826 | 1.25 | (.49 | ) | 1.24 | (.48 | ) | 88 | ||||||||||||||||||
| 15.24 | 295,348 | 1.26 | (.09 | ) | 1.26 | (.09 | ) | 99 | ||||||||||||||||||
| (37.00 | ) | 166,698 | 1.26 | (.15 | ) | 1.26 | (.15 | ) | 92 | |||||||||||||||||
| 7.35 | 238,129 | 1.23 | (.22 | ) | 1.23 | (.22 | ) | 97 | ||||||||||||||||||
| 5.39 | 2,866 | 2.09 | (1.51 | ) | 2.05 | (1.45 | ) | 69 | ||||||||||||||||||
| 21.97 | 3,925 | 2.00 | (1.23 | ) | 1.99 | (1.22 | ) | 88 | ||||||||||||||||||
| 14.46 | 5,511 | 2.01 | (.80 | ) | 2.01 | (.80 | ) | 99 | ||||||||||||||||||
| (37.52 | ) | 6,249 | 2.01 | (.90 | ) | 2.01 | (.90 | ) | 92 | |||||||||||||||||
| 6.51 | 13,720 | 1.98 | (.97 | ) | 1.98 | (.97 | ) | 97 | ||||||||||||||||||
| 5.35 | 14,009 | 2.09 | (1.50 | ) | 2.05 | (1.45 | ) | 69 | ||||||||||||||||||
| 21.99 | 17,393 | 2.00 | (1.24 | ) | 1.99 | (1.23 | ) | 88 | ||||||||||||||||||
| 14.42 | 16,938 | 2.01 | (.80 | ) | 2.01 | (.80 | ) | 99 | ||||||||||||||||||
| (37.44 | ) | 17,062 | 2.01 | (.90 | ) | 2.01 | (.90 | ) | 92 | |||||||||||||||||
| 6.46 | 34,505 | 1.98 | (.95 | ) | 1.98 | (.95 | ) | 97 | ||||||||||||||||||
| 5.85 | 20,044 | 1.60 | (1.00 | ) | 1.55 | (.95 | ) | 69 | ||||||||||||||||||
| 22.70 | 18,047 | 1.50 | (.72 | ) | 1.49 | (.71 | ) | 88 | ||||||||||||||||||
| 15.02 | 24,701 | 1.51 | (.31 | ) | 1.51 | (.31 | ) | 99 | ||||||||||||||||||
| (37.19 | ) | 23,069 | 1.51 | (.40 | ) | 1.51 | (.40 | ) | 92 | |||||||||||||||||
| 6.99 | 38,181 | 1.48 | (.43 | ) | 1.48 | (.43 | ) | 97 | ||||||||||||||||||
| 6.36 | 273,983 | 1.09 | (.49 | ) | 1.05 | (.45 | ) | 69 | ||||||||||||||||||
| 23.30 | 400,042 | 1.00 | (.24 | ) | .99 | (.23 | ) | 88 | ||||||||||||||||||
| 15.55 | 322,658 | 1.01 | .19 | 1.01 | .19 | 99 | ||||||||||||||||||||
| (36.86 | ) | 289,685 | 1.01 | .10 | 1.01 | .10 | 92 | |||||||||||||||||||
| 7.58 | 691,488 | .98 | .03 | .98 | .03 | 97 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 39 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000))
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”) known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the fund from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares were renamed Class R3 Shares and Class Y Shares were renamed Class I Shares.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Large Cap Select Fund (“Large Cap Select”) formerly known as First American Large Cap Select Fund, Nuveen Mid Cap Select Fund (“Mid Cap Select”) formerly known as First American Mid Cap Select Fund and Nuveen Small Cap Select Fund (“Small Cap Select”) formerly known as First American Small Cap Select Fund, (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
Large Cap Select’s investment objective is capital appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of large-capitalization companies.
Mid Cap Select’s investment objective is long-term growth of capital. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of mid-capitalization companies within the same market capitalization range as the Russell MidCap ® Index.
Small Cap Select’s investment objective is capital appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in common stocks of small-capitalization companies.
Each Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. Each Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of each Fund’s total assets may be invested in equity securities of emerging market issuers. Each Fund also may invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
| 40 | Nuveen Investments |
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. Futures contracts are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for each Fund. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Small Cap Select receives substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities must use estimates in reporting the character of their income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency exchange contracts, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if
| Nuveen Investments | 41 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, securities sold short, forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with securities sold short, forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Change in net unrealized appreciation (depreciation) of securities sold short, forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively” on the Statement of Operations, when applicable.
Futures Contracts
Each Fund is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in an attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2011, Mid Cap Select invested in long equity futures contracts as part of the management of the Fund. These long futures contracts were used to manage cash flow activity and implement various tactical market and hedging strategies.
The average number of futures contracts outstanding during the fiscal year ended October 31, 2011, were as follows:
| Mid Cap Select | ||||
Average number of futures contracts outstanding* | — | |||
| * | The average number of outstanding contracts is calculated based on the outstanding number of contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on futures contracts activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable,
| 42 | Nuveen Investments |
expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. If the value of the securities on loan increases, [such that the level of collateralization falls below 102%], additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM also received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| Large Cap Select | Mid Cap | Small Cap Select | ||||||||||
Securities lending fees paid | $ | 7 | $ | 4 | $ | 219 | ||||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
| Nuveen Investments | 43 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| Large Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 61,599 | $ | — | $ | — | $ | 61,599 | ||||||||
Money Market Funds* | 16,724 | — | — | 16,724 | ||||||||||||
Short-Term Investments | 419 | — | — | 419 | ||||||||||||
Total | $ | 78,742 | $ | — | $ | — | $ | 78,742 | ||||||||
| Mid Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 29,610 | $ | — | $ | — | $ | 29,610 | ||||||||
Money Market Funds* | 13,037 | — | — | 13,037 | ||||||||||||
Short-Term Investments | 536 | — | — | 536 | ||||||||||||
Total | $ | 43,183 | $ | — | $ | — | $ | 43,183 | ||||||||
| Small Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 563,176 | $ | — | $ | — | $ | 563,176 | ||||||||
Money Market Funds* | 261,531 | — | — | 261,531 | ||||||||||||
Short-Term Investments | 14,159 | — | — | 14,159 | ||||||||||||
Total | $ | 838,866 | $ | — | $ | — | $ | 838,866 | ||||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| Mid Cap Select Level 3 Common Stocks | Small Cap Select Level 3 Common Stocks | |||||||
Balance at the beginning of year | $ | — | ** | $ | — | ** | ||
Gains (losses): | ||||||||
Net realized gains (losses) | — | ** | — | ** | ||||
Net change in unrealized appreciation (depreciation) | — | — | ||||||
Purchases at cost | — | — | ||||||
Sales at proceeds | — | — | ||||||
Net discounts (premiums) | — | — | ||||||
Transfers in to | — | — | ||||||
Transfers out of | — | ** | — | ** | ||||
Balance at the end of year | $ | — | $ | — | ||||
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of | $ | — | $ | — | ||||
| ** | Amount rounds to less than $1,000. |
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge
| 44 | Nuveen Investments |
transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.
The following table presents the amount of net realized gain (loss) recognized for the fiscal year ended October 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.
| Net Realized Gain (Loss) from Futures Contracts | Mid Cap Select | |||
Risk Exposure | ||||
Equity | $ | 253 | ||
4. Fund Shares
Transactions in Fund shares were as follows:
| Large Cap Select | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 49 | $ | 631 | 45 | $ | 486 | ||||||||||
Class C | 4 | 44 | — | 4 | ||||||||||||
Class R3 (1) | 1 | 12 | 3 | 36 | ||||||||||||
Class I (1) | 317 | 3,896 | 1,646 | 18,016 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 1 | 17 | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3 (1) | — | — | — | 1 | ||||||||||||
Class I (1) | 6 | 73 | 49 | 527 | ||||||||||||
| 377 | 4,656 | 1,744 | 19,087 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (98 | ) | (1,234 | ) | (83 | ) | (894 | ) | ||||||||
Class C | (3 | ) | (34 | ) | (4 | ) | (46 | ) | ||||||||
Class R3 (1) | (1 | ) | (18 | ) | — | (1 | ) | |||||||||
Class I (1) | (5,271 | ) | (65,572 | ) | (5,476 | ) | (60,119 | ) | ||||||||
Class I (1) – In-Kind | (1,284 | ) | (15,346 | ) | — | — | ||||||||||
| (6,657 | ) | (82,204 | ) | (5,563 | ) | (61,060 | ) | |||||||||
Net increase (decrease) | (6,280 | ) | $ | (77,548 | ) | (3,819 | ) | $ | (41,973 | ) | ||||||
| Mid Cap Select | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 101 | $ | 1,030 | 133 | $ | 1,134 | ||||||||||
Class B | 1 | 11 | — | — | ||||||||||||
Class C | 7 | 64 | 24 | 192 | ||||||||||||
Class I (1) | 137 | 1,432 | 256 | 2,283 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 4 | 33 | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class I (1) | — | — | 4 | 33 | ||||||||||||
| 246 | 2,537 | 421 | 3,675 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (290 | ) | (2,916 | ) | (437 | ) | (3,730 | ) | ||||||||
Class B | (65 | ) | (548 | ) | (95 | ) | (697 | ) | ||||||||
Class C | (74 | ) | (678 | ) | (108 | ) | (866 | ) | ||||||||
Class I (1) | (833 | ) | (8,556 | ) | (1,271 | ) | (11,304 | ) | ||||||||
| (1,262 | ) | (12,698 | ) | (1,911 | ) | (16,597 | ) | |||||||||
Net increase (decrease) | (1,016 | ) | $ | (10,161 | ) | (1,490 | ) | $ | (12,922 | ) | ||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| Nuveen Investments | 45 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
| Small Cap Select | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 9,066 | $ | 118,699 | 13,154 | $ | 141,839 | ||||||||||
Class B | 1 | 9 | — | 5 | ||||||||||||
Class C | 44 | 520 | 94 | 932 | ||||||||||||
Class R3 (1) | 733 | 9,445 | 866 | 9,184 | ||||||||||||
Class I (1) | 4,214 | 59,499 | 6,805 | 80,890 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3 (1) | — | — | — | — | ||||||||||||
Class I (1) | — | — | 11 | 133 | ||||||||||||
| 14,058 | 188,172 | 20,930 | 232,983 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (15,876 | ) | (207,042 | ) | (15,141 | ) | (164,001 | ) | ||||||||
Class B | (131 | ) | (1,344 | ) | (302 | ) | (2,625 | ) | ||||||||
Class C | (429 | ) | (4,846 | ) | (401 | ) | (3,931 | ) | ||||||||
Class R3 (1) | (655 | ) | (8,329 | ) | (1,935 | ) | (21,453 | ) | ||||||||
Class I (1) | (11,942 | ) | (165,412 | ) | (6,613 | ) | (77,159 | ) | ||||||||
Class I (1) – In-Kind | (3,471 | ) | (49,354 | ) | — | — | ||||||||||
| (32,504 | ) | (436,327 | ) | (24,392 | ) | (269,169 | ) | |||||||||
Net increase (decrease) | (18,446 | ) | $ | (248,155 | ) | (3,462 | ) | $ | (36,186 | ) | ||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
Mid Cap Select | 43 | 66 | ||||||
Small Cap Select | 68 | 212 | ||||||
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending, short-term investments and derivative transactions, where applicable) during the fiscal year ended October 31, 2011, were as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Purchases | $ | 143,540 | $ | 54,441 | $ | 471,528 | ||||||
Sales | 220,546 | 64,697 | 728,914 | |||||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Cost of investments | $ | 76,363 | $ | 40,791 | $ | 815,876 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 5,439 | $ | 3,350 | $ | 74,105 | ||||||
Depreciation | (3,060 | ) | (957 | ) | (51,115 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 2,379 | $ | 2,393 | $ | 22,990 | ||||||
| 46 | Nuveen Investments |
Permanent differences, primarily due to the expiration of capital loss carryforwards, net operating losses, tax equalization, REIT adjustments and redemptions in-kind, resulted in reclassifications among the Funds’ components of net assets at October 31, 2011, as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Capital paid-in | $ | 3,049 | $ | (553 | ) | $ | 13,968 | |||||
Undistributed (Over-distribution) of net investment income | 14 | 147 | 4,231 | |||||||||
Accumulated net realized gain (loss) | (3,063 | ) | 406 | (18,199 | ) | |||||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ tax year end, were as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Undistributed net ordinary income* | $ | — | $ | — | $ | — | ||||||
Undistributed net long-term capital gains | — | — | 13,467 | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2011 and October 30, 2010, was designated for purposes of the dividends paid deduction as follows:
| 2011 | Large Cap Select | Mid Cap Select | Small Cap Select | |||||||||
Distributions from net ordinary income* | $ | 150 | $ | — | $ | — | ||||||
Distributions from net long-term capital gains | — | — | — | |||||||||
| 2010 | Large Cap Select | Mid Cap Select | Small Cap Select | |||||||||
Distributions from net ordinary income* | $ | 1,140 | $ | 164 | $ | 184 | ||||||
Distributions from net long-term capital gains | — | — | — | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
At October 31, 2011, the Funds’ tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
| Large Cap Select | Mid Cap Select | |||||||
Expiration: | ||||||||
October 31, 2016 | $ | 21,601 | $ | 7,820 | ||||
October 31, 2017 | 54,315 | 15,708 | ||||||
Total | $ | 75,916 | $ | 23,528 | ||||
At October 31, 2011, the Funds’ tax year end, $405 of Mid Cap Select’s capital loss carryforward expired.
During the Funds’ tax year ended October 31, 2011, the following Funds utilized their capital loss carryforwards as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Utilized capital loss carryforwards | $ | 18,068 | $ | 3,915 | $ | 92,019 | ||||||
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors a monthly advisory fee, on an annual basis, equal to each Fund’s average daily net assets as follows:
| Fund | Advisory Fee Rate | |||
Large Cap Select* | .65 | % | ||
Mid Cap Select | .70 | |||
Small Cap Select | .70 | |||
| * | The advisory fees for Large Cap Select were equal to an annual rate of .65% of the average daily net assets up to $3 billion, .625% of the average daily net assets on the next $2 billion and .60% of the average daily net assets in excess of $5 billion. |
| Nuveen Investments | 47 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. 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 Nuveen Fund Advisors.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Large Cap Select Fund-Level Fee Rate | Mid Cap | Small Cap | |||||||||
For the first $125 million | .5500 | % | .7000 | % | .7000 | % | ||||||
For the next $125 million | .5375 | .6875 | .6875 | |||||||||
For the next $250 million | .5250 | .6750 | .6750 | |||||||||
For the next $500 million | .5125 | .6625 | .6625 | |||||||||
For the next $1 billion | .5000 | .6500 | .6500 | |||||||||
For net assets over $2 billion | .4750 | .6250 | .6250 | |||||||||
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule for each Fund is as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of $2 billion added to the Nuveen fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rate for each Fund was as follows: |
| Fund | Complex-Level Fee Rate | |||
Large Cap Select | .2000 | % | ||
Mid Cap Select | .2000 | |||
Small Cap Select | .2000 | |||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Fund’s overall strategy and asset allocation decisions. Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed each investing Fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations, and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
| 48 | Nuveen Investments |
During the period November 1, 2010 through December 31, 2010, FAF Advisors agreed to waive fees and reimburse other Fund expenses of Mid Cap Select through February 28, 2011, so that total annual Fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange-traded funds and other investment companies, as a percentage of each Fund’s average daily net assets, did not exceed the following amounts:
| Mid Cap Select | ||||
Class A Shares | 1.41 | % | ||
Class B Shares | 2.16 | |||
Class C Shares | 2.16 | |||
Class I Shares (1) | 1.16 | |||
Expiration Date | February 28, 2011 | |||
| (1) | - Effective January 18, 2011, Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class I Shares. |
Effective January 1, 2011, Nuveen Fund Advisors agreed to waive fees and reimburse other Fund expenses of Mid Cap Select so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
| Mid Cap Select | ||||
Class A Shares | 1.41 | % | ||
Class B Shares | 2.16 | |||
Class C Shares | 2.16 | |||
Class I Shares (1) | 1.16 | |||
Expiration Date | February 29, 2012 | |||
| (1) | - Effective January 18, 2011, Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class I Shares. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select funds advised by Nuveen Fund Advisors.
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
Custodian Fees
U.S. Bank serves as the custodian for each Fund pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly. Interest earned on uninvested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations, when applicable. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
| Nuveen Investments | 49 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Under the new agreement, Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B Shares and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Sales charges collected (Unaudited) | $ | 6 | $ | 14 | $ | 76 | ||||||
Paid to financial intermediaries (Unaudited) | 5 | 12 | 67 | |||||||||
Quasar and/or Nuveen Securities, LLC also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
Commission advances (Unaudited) | $ | 1 | $ | 1 | $ | 5 | ||||||
All 12b-1 service and distribution fees collected on Class B Shares and Class C Shares during the first year following a purchase were retained by Quasar and/or the Nuveen Securities, LLC to compensate for commissions advanced to financial intermediaries. During the fiscal year ended October 31, 2011, Quasar and/or the Nuveen Securities, LLC retained such 12b-1 fees as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
12b-1 fees retained (Unaudited) | $ | — | $ | 8 | $ | 31 | ||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $3 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of the Funds, were sold with an up-front sales charge of 5.50%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Effective January 18, 2011, Class A Shares of the Funds are sold with an up-front sales charge of 5.75%. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class B Shares continue to automatically convert to Class A Shares eight years after purchase. Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
| 50 | Nuveen Investments |
Quasar and/or Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| Large Cap Select | Mid Cap Select | Small Cap Select | ||||||||||
CDSC retained (Unaudited) | $ | — | $ | 1 | $ | 4 | ||||||
Affiliated Retirement Plans and Redemptions In-Kind
An affiliated 401(k) plan of FAF Advisors, (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 1, 2010, in the amounts as follows:
Large Cap Select | $ | 15,346 |
An affiliated pension plan of FAF Advisors, (the “plan”) also previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, in the amounts as follows:
Small Cap Select | $ | 49,354 |
In these transactions, the Funds paid redemption proceeds by distributing a proportionate amount of securities in their respective portfolios. Remaining shareholders in the Funds did not recognize any capital gains from the transactions.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, and the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
| Nuveen Investments | 51 |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
| 52 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
| Nuveen Investments | 53 |
Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
| 54 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
| Nuveen Investments | 55 |
Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). At a meeting of the Funds’ stockholders held on December 17, 2010 (adjourned until December 29, 2010 for the Nuveen Small Cap Select Fund (formerly known as the Small Cap Select Fund)), stockholders of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement and the NAM Sub-Advisory Agreement became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for the Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
| 56 | Nuveen Investments |
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
| Nuveen Investments | 57 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
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Notes
| Nuveen Investments | 59 |
Notes
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Notes
| Nuveen Investments | 61 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Lipper Large-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Funds Classification. The Lipper Large-Cap Core Funds Classification Average contained 1,081, 821 and 610 for the 1-year, 5-year and since inception periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Mid-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Growth Funds Classification. The Lipper Mid-Cap Growth Funds Classification Average contained 395, 309 and 191 funds for the 1- year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. The Lipper Small-Cap Core Funds Classification Average contained 708, 513 and 303 funds for the 1- year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Russell MidCap® Index: An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap represents approximately 31% of the total market capitalization of the Russell 1000 companies. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
S&P 500 Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
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Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodian
U.S. Bank National Association
St. Paul, MN
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Distribution Information: The following Fund hereby designates its percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and its percentages as qualified dividend income (“QDI”) for individuals under Section 1 (h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| Fund | % of DRD | % of QDI | ||||||
Nuveen Large Cap Select Fund | 100.00 | % | 100.00 | % | ||||
Long-Term Capital Gain Distributions: Nuveen Small Cap Select Fund designated as a long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), $3,906 (in thousands), or, if greater, the amount necessary to reduce earnings and profits of the Fund related to net capital gain to zero for the tax year ended October 31, 2011.
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MAN-FSLCT-1011P
Mutual Funds
Nuveen Equity Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen Equity Income Fund | FFEIX | FAEBX | FFECX | FEISX | FAQIX | |||||
Nuveen Large Cap Value Fund | FASKX | FATBX | FALVX | FAVSX | FSKIX | |||||
Nuveen Mid Cap Value Fund | FASEX | FAESX | FACSX | FMVSX | FSEIX | |||||
Nuveen Small Cap Value Fund | FSCAX | — | FSCVX | FSVSX | FSCCX | |||||
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| Must be preceded by or accompanied by a prospectus. | NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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.
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Cori Johnson, CFA, and Gerald Bren, CFA, are the portfolio managers for the Nuveen Equity Income Fund (formerly known as First American Equity Income Fund). Cori, who has 30 years of investment experience, assumed portfolio management responsibilities in 1996. Gerald, with 39 years of experience, has been a manager on the Fund since 1994.
Brent Mellum, CFA, and Kevin Earley, CFA, are the portfolio managers for the Nuveen Large Cap Value and Nuveen Mid Cap Value Funds (formerly known as First American Large Cap Value Fund and First American Mid Cap Value Fund, respectively). Brent, who has more than 18 years of financial industry experience, assumed portfolio management responsibilities for the Nuveen Large Cap Value Fund in 2004. Kevin, with 24 years of experience, joined the management team for that Fund in 2000. For the Mid Cap Value Fund, Brent and Kevin both assumed portfolio management responsibilities in 1999.
Karen Bowie, CFA, the portfolio manager for the Nuveen Small Cap Value Fund (formerly known as First American Small Cap Value Fund), has 27 years of financial industry experience. She assumed portfolio management responsibilities in 2006.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the U.S. economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
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In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the December quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt
issue caused a high degree of volatility in the equity markets. The first half of the period
saw dramatic gains for stocks and other risk assets fueled by signs of an improving
economy. However, as the summer progressed, markets fell back sharply. For much of
August and September, stocks traded lower before staging a comeback in the final month
of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen Equity Income Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and, ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the S&P 500 Index and a custom benchmark of only dividend-paying S&P 500 Index stocks over the twelve-month period, but it outperformed the Lipper classification average.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
Over the twelve-month period, we continued to implement the Fund’s disciplined investment strategy. We seek to achieve consistent, long-term outperformance with lower volatility by building and managing a portfolio diversified between core and opportunistic holdings with a focus on what we believe are attractively valued companies with above-average current income or dividend growth. We use an integrated, multi-perspective research and analysis approach that involves a team of portfolio managers, fundamental research analysts and quantitative analysts. The Fund’s holdings exhibit attractive valuations and identifiable catalysts that we believe will drive future stock appreciation.
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The Fund is also actively managed in an effort to minimize distributed capital gains and maximize after-tax returns using a typical investment horizon of at least two to three years. We adhere to portfolio guardrails to manage volatility and maintain diversification, generally selling a security if it no longer is expected to meet our dividend growth or price appreciation expectations or if we find a better alternative in the marketplace.
During the Fund’s fiscal year, stock selection in the technology sector was the largest positive contributor to performance. Our favorable results were led by a position in MasterCard, which continued to see strong revenue and income growth with the worldwide proliferation of electronic payment solutions. MasterCard is also gaining market share globally. In addition, the Fund experienced strong performance from owning QUALCOMM, which benefited from the increasing popularity of the next generation of hand-held mobile devices. QUALCOMM is a major provider of the chips that go into smart phones. Finally in technology, the Fund’s results were aided by not owning Hewlett-Packard, a significant position in the benchmark and also the worst performer in the group. We avoided this company because we were concerned about its fundamental business trends and the turmoil in its management structure.
Performance was also enhanced by our stock selection in utilities, where we had emphasized some of the higher yielding, undervalued companies in the sector. For example, the Fund experienced strong results from CenterPoint Energy. Investors revalued the company higher in recognition of growing future revenue and profit prospects from its distribution assets in areas with expanding shale gas development. We also experienced a strong positive contribution from PNM Resources, one of the best values in the group. We bought it based on our expectations for an improved regulatory environment, which developed during the year causing the stock’s valuation to increase.
Health care was another area where the Fund benefited from good stock selection. In order to provide current income to the portfolio, we were positioned in some of the large pharmaceutical companies with above-average dividend yields. Standout performers in this group included both GlaxoSmithKline and Pfizer. In the case of GlaxoSmithKline, investors began to look beyond its near-term expiration of patents toward the products in its pipeline that will increasingly provide profits over the longer term. Pfizer continued to restructure its organization to better reflect the prospect for lower future revenues from the expiration of the patent on its largest drug, Lipitor. Investors revalued the stock upward based on these restructuring efforts and expectations that free cash flow could continue to be strong and used to repurchase shares and increase the dividend. Elsewhere in the health care sector, the Fund was rewarded for its position in Covidien, a diversified distributor of medical devices and hospital supplies. Investors bid up the stock in recognition of its improving earnings and revenue growth during the period.
In the consumer staples sector, the Fund experienced good results from owning Unilever, a leading food and personal care products provider. The company benefited from its diversified global presence and increased worldwide demand for its products.
These areas of strength were offset by unfavorable stock selection in the financial sector, particularly in diversified financials and banks. These stocks were uniformly negative in reaction to a shift from expectations of a robust earnings recovery to expectations for lower earnings in a continued flat yield curve environment. The ongoing low-yield
| Nuveen Investments | 7 |
environment limits the ability of banks to earn interest income. This shift — combined with ongoing uncertainties about regulatory oversight, capital requirements, changes to fee structures and potential bad loans on their balance sheets — created greater concerns about future profitability potential and weighed on the stocks.
In consumer discretionary, the Fund’s few positive performers were balanced out by the negatives. On the positive side, turnaround story Footlocker advanced as investors recognized its improving same-store sales and profit margins. However, these results were more than offset by some of the housing market-related stocks the Fund owned. For example, home builder company M.D.C. Holdings sold off due to the lack of visibility on the return of its revenues and earnings as prospects for recovery in the housing market disappointed investor expectations.
In the industrials sector, Fund performance suffered from a lack of exposure to some of the large machinery manufacturing companies like Caterpillar. Also, one of our larger holdings, Emerson, a leading diversified global manufacturing and engineering solutions company, underperformed because of near-term investor concern about slowing earnings growth in an expected slower global growth environment.
As of the end of the fiscal year, we had reduced the cyclical exposure of the Fund’s holdings in response to our outlook for a slowing global growth environment. Europe and the United States are expected to face further macro headwinds as budget deficit issues and sovereign debt levels are addressed. As a result, China and other emerging markets are likely to slow as their end markets stagnate. Therefore, the Fund’s portfolio is more diversified with tempered sector bets compared to a year ago. For example, we have reduced the Fund’s position in the consumer discretionary sector to benchmark weight. We have increased our weights in the energy and financial sectors, where we are finding more compelling valuations and better current yields. The energy sector is now neutral versus the benchmark while the financial sector is slightly overweighted. Within financials, we are selective, emphasizing life and specialty insurance companies and banks that are focused on investment services, while underweighting the large banks. We have also brought up the Fund’s consumer staples position so it is less of an underweight. We have moved to an underweight position in utilities because current valuations in the sector are expensive versus their history.
As always, we remain focused on owning primarily large, U.S.-based companies that we believe have growing global franchises and dividend policies supporting above-average current yields or dividend growth. Investors are increasingly focused on dividend payout patterns from U.S. corporations as they continue to keep large amounts of cash on the sidelines. We believe this may prove beneficial to this segment of the equity markets going forward.
Nuveen Large Cap Value Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell 1000 Value Index and the Lipper classification average over the twelve-month period.
| 8 | Nuveen Investments |
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in the common stocks of companies that have market capitalizations of $5 billion or greater at the time of purchase. During this period, we continued to implement the Fund’s investment process of selecting large-cap companies that we believe are undervalued relative to other companies in the same industry or market, that demonstrate improving fundamentals and that exhibit a near-term catalyst that could close the gap between market value and our perception of fair value. Generally, we sold a holding if the stock hit its price target, the company’s fundamentals or competitive position significantly deteriorated or if a better alternative existed in the marketplace.
While the Fund underperformed over this period, it did benefit from favorable security selection in the energy, consumer discretionary and materials sectors. Within energy, exploration and production companies Anadarko Petroleum, Concho Resources and Pioneer Natural Resources posted strong advances due to accelerating production profiles and favorable energy prices. Oil service related firms National Oilwell Varco, Schlumberger and Cameron International also benefited from attractive industry conditions. El Paso rose after it agreed to be purchased by Kinder Morgan.
Retail stock selection, within consumer discretionary, was favorable due to positive returns from Macy’s and Bed Bath & Beyond as both companies experienced accelerating same-store sales and higher profit margins. Hotel and timeshare operator Wyndham Worldwide also advanced because of strong results and robust share repurchase activity. Chemical companies PPG Industries and LyondellBasell Industries benefited from emerging market demand which allowed pricing to outpace higher costs. Other stocks that had a positive impact on the Fund’s performance included CBS, related to robust advertising spending conditions and the network’s high viewership ratings, and MasterCard, following clarity on the fees retailers would have to pay to accept debit cards. Additionally, the Fund’s underweight positions in consumer staples and financials, and its overweights in both the energy and consumer discretionary sectors, aided performance.
The Fund’s performance was negatively impacted by unfavorable stock selection in the industrial, consumer staple, financial and technology sectors. Machinery holdings SPX Corp and Terex, within the industrial sector, experienced sharp corrections later in the period due to concerns of a global economic slowdown caused by uncertainty in Europe and China. Delta Air Lines declined because of higher fuel prices and an uncertain European demand environment. Milk processor Dean Foods, within consumer staples, fell as a result of limited ability to pass on higher milk costs. Drug store operator Walgreens declined due to its disagreement with a large pharmacy benefits manager. Safeway, a food retailer, declined because of volume declines caused by higher food prices.
Within financials, the Fund’s allocation to banks hurt overall returns as the group underperformed due to challenged loan growth and interest income pressures caused by historically low interest rates. Insurance companies Prudential Financial and Lincoln National underperformed due to low interest rates which may pressure future earnings. Technology stocks that had a negative impact included semiconductor manufacturer Marvell Technology due to a lower computer hard drive outlook, ON Semiconductor
| Nuveen Investments | 9 |
following the Japanese earthquake because of the company’s manufacturing exposure to that market and Xerox because of moderating growth following a cyclical rebound. The Fund’s overweight position in technology also detracted from performance as the group lagged.
We continued to focus on companies that we believed would benefit from improving fundamentals not fully recognized by the market. The Fund established a number of new positions across a variety of industries during the twelve-month period, including: hotel and timeshare company Wyndham Worldwide; cable television operator Comcast; drug store retailer Walgreens; energy companies El Paso and McDermott International; credit card provider Capital One Financial; industrial conglomerate General Electric; semiconductor manufacturer Intel; software developer Oracle; tobacco producer Philip Morris International; retailers Bed Bath & Beyond and Macy’s; industrial conglomerate Tyco International; containerboard company MeadWestvaco; telecom provider Verizon Communications; and utility companies ONEOK, Pinnacle West Capital and Calpine.
We eliminated several positions from the Fund, including: toy manufacturer Mattel; battery maker Energizer Holdings; energy companies Apache, Concho Resources, Schlumberger,
ConocoPhillips and Newfield Exploration; thrift Hudson City Bancorp; insurance companies PartnerRe and Aflac; diversified financial Bank of America; online trading company TD Ameritrade Holding; life science tools and testing companies Thermo Fisher Scientific and Life Technologies; pharmaceutical manufacturers Valeant Pharmaceuticals and Endo Pharmaceutical; industrial companies Parker-Hannifin and Cummins; semiconductor manufacturers QUALCOMM, Marvell Technology and ON Semiconductor; computer services provider Xerox; connector company Amphenol; software developer Check Point Software; materials companies Freeport-McMoRan Copper & Gold, Mosaic and Albemarle; industrial conglomerate Textron; airline Delta Air Lines; staffing provider Manpower; telecommunication companies Qwest Communications and AT&T; and utility companies Public Service Enterprise, PG&E and CenterPoint Energy.
Nuveen Mid Cap Value Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell Midcap Value Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $350 million and $14 billion. During the period, we continued to implement the Fund’s investment process of selecting mid-cap companies that we believed were undervalued relative to other companies in the same industry or market, that demonstrated improving fundamentals, and that exhibited a near-term catalyst that
| 10 | Nuveen Investments |
could close the gap between market value and our perception of fair value. Generally, we sold a holding if the stock hit its price target, the company’s fundamentals or competitive position significantly deteriorated or if a better alternative existed in the marketplace.
While the Fund underperformed over this period, it did benefit from favorable security selection in the energy and materials sectors. Within energy, exploration and production companies Concho Resources and Pioneer Natural Resources posted strong advances due to accelerating production profiles and favorable energy prices. Integrated energy provider Williams Companies outperformed after announcing plans to separate its exploration business from its legacy pipeline business, while El Paso outperformed after being acquired by a larger competitor. Within the materials sector, chemical producers Celanese, Albemarle and PPG Industries benefited from improving market demand which allowed pricing to outpace higher feedstock costs.
Other stocks that had a positive impact on the Fund’s performance included aerospace supplies provider Goodrich, which agreed to be acquired by a larger competitor, and media company CBS, which benefited from robust advertising spending conditions and the network’s high viewership ratings. Also, specialty pharmaceutical producer Valeant Pharmaceuticals outperformed due to investor enthusiasm related to announced acquisitions. Specialty retailer Foot Locker benefited from an improvement in sales performance and profit margins. Finally, diversified energy operator ONEOK benefited from favorable conditions in commodity transportation and processing.
The Fund’s performance was negatively impacted by unfavorable stock selection in the technology, health care, consumer staples and financial sectors. An underweight allocation toward utilities also adversely impacted results. In technology, semiconductor manufacturer Marvell Technology underperformed due to market share losses in several key end markets. ON Semiconductor declined following the Japanese earthquake because of the company’s large exposure to that market. Xerox fell as a result of moderating growth as its end markets stabilized following a cyclical rebound. Online staffing provider Monster Worldwide declined following earnings results that were below expectations.
Within health care, service providers DaVita and Universal Health underperformed due to uncertainty related to government reimbursement for services, while capital equipment manufacturer Hill-Rom underperformed after highlighting softness in hospital capital equipment spending, especially in Europe. In the consumer staples sector, milk processor Dean Foods fell because of its limited ability to pass on higher raw milk costs. In the financial sector, asset manager Lazard underperformed as a result of declining asset levels, while life insurance carriers Lincoln National and Hartford Financial underperformed due to investor concern about the impact of capital market volatility on their investment portfolios.
We continued to look for companies that we believed would benefit from improving fundamentals not fully recognized by the market. The Fund established a number of new positions across a variety of industries during the twelve-month period, including: hotel and timeshare company Wyndham Worldwide; consumer products manufacturer Jarden; theatre operator Cinemark; auto and truck parts supplier Dana Holding; retailers Ascena Retail, Foot Locker and GameStop; food processors Corn Products International and Dean Foods; energy companies Oil States International, SM Energy and Bill Barrett
| Nuveen Investments | 11 |
Group; financial firms SLM Corporation, Marsh & McLennan, Ace Limited and EastWest Bancorp; health care companies Humana, CareFusion, Hill-Rom and Impax Laboratories; industrial companies Agco Corporation, Werner Enterprises, Ingersoll-Rand, Parker-Hannifin and Fluor; materials producers MeadWestvaco and Packaging Corporation of America; technology companies Electronic Arts, Arrow Electronics, Amdocs Limited and Sandisk; and utility companies Pinnacle West, NV Energy, OGE Energy and American Water Works.
We eliminated several positions from the Fund during the period, including: advertising agency Interpublic Group; food processor Bunge Limited; soft drink producer Dr. Pepper Snapple; exploration companies Whiting Petroleum and Newfield Exploration; financial companies SunTrust Banks, Discover Financial and PartnerRe; industrial manufacturers Cummins, Eaton and Stanley Black & Decker; materials producers Albemarle, PPG Industries and CF Industries; technology producers Avnet, Marvell Technology and Xerox; telecommunications service provider Qwest Communications; and utilities Spectra Energy, Centerpoint Energy, Wisconsin Energy, Sempra Energy and CMS Energy.
Nuveen Small Cap Value Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) outperformed the Russell 2000 Value Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations of less than $3 billion at the time of purchase. During the twelve-month period, we continued to focus on building a well-diversified portfolio of small-cap stocks from companies that we believed had strengthening balance sheets and free cash flow characteristics. We also continued to target companies with what we thought were sound business models and strong competitive advantages that might gain market share opportunistically in the current environment. We remained committed to our approach of investing in quality companies that are trading at what we believe is a discount to both intrinsic and relative value metrics.
The Fund’s outperformance was primarily driven by bottom-up stock selection across nine of the ten sectors in which it invested during the fiscal year. From a top-down perspective, the Fund’s overweight position relative to the benchmark in the energy and materials sectors, in conjunction with its underweight stance in financials, also was beneficial. However, the Fund’s underweight position in both the utilities and consumer staples sectors was a detractor. Our solid stock selection was sufficient to override the Fund’s pro-cyclical tilt during a difficult market environment in 2011.
| 12 | Nuveen Investments |
The top contributors to the Fund’s performance were well distributed across a number of sectors. For example, professional staffing company SFN Group outperformed after it was acquired by an international private firm looking to broaden its geographic footprint. Also, Sally Beauty Holdings, the leading distributor of brand-name beauty products to salon professionals, continued to benefit from solid organic sales growth. Buckeye Technologies, a specialty wood and cotton-based materials manufacturer, gained due to solid execution on cost and debt reduction combined with industry dynamics that allowed for a double-digit price increase. Triumph Group, a manufacturer and distributor of aircraft components and systems, outperformed based on solid execution, increased order rates for commercial aircraft and a strategic acquisition that broadened its product portfolio. Additionally, leading restaurant franchiser Domino’s Pizza continued to deliver steady sales growth from its domestic network. Meanwhile, the company’s international stores continued to grow on a same-store basis.
The primary drag on performance was the Fund’s cash exposure (approximately 1.9% at period end) in a strongly advancing market environment. Other individual detractors included MGIC Investment, a leading domestic mortgage insurer, which continued to struggle through the lackluster domestic housing market. Also, international air cargo service provider Atlas Air Worldwide stumbled due to the slowing global growth climate and the delay of new cargo plane deliveries. Office supply retailer OfficeMax had its sales and margins negatively impacted by a difficult environment for small businesses. Competitive pressures and strategic uncertainty caused us to exit the Fund’s position in OfficeMax. In addition, Cooper Tire & Rubber, a leading manufacturer of automobile tires, was caught in the crossfire of slowing demand due to economic uncertainty and greater input costs. Finally, Brandywine Realty Trust, a well-positioned, East Coast office and industrial Real Estate Investment Trust (REIT), was negatively impacted by the overall threat of a double-dip recession as the company continued to deliver solid leasing activity in a difficult market.
From a sector positioning standpoint, we continued to favor a pro-cyclical tilt. Therefore, the Fund was overweight relative to the benchmark in sectors where performance is closely linked to the business cycle, such as information technology, consumer discretionary, industrials and commodity-related sectors. We continue to believe that the economic environment will stabilize and expand at a moderate pace. As the year progressed, opportunities arose to alter the composition of the Fund’s pro-cyclical tilt to a greater relative emphasis in the energy and materials sectors, funded by a decrease in consumer discretionary and technology. This relative repositioning was a function of our bottom-up investment process. We continued to underweight the financials, consumer staples and utilities sectors in the Fund relative to its benchmark.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk; dividends are not guaranteed. Investments in small- and mid-cap companies are subject to greater volatility. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Debt or fixed income securities are subject to credit risk and interest rate risk.
| Nuveen Investments | 13 |
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| 14 | Nuveen Investments |
Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following eight pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares and Class Y Shares, previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
| Nuveen Investments | 15 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Equity Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 7.28% | 1.75% | 4.60% | |||||||||
Class A Shares at maximum Offering Price | 1.09% | 0.55% | 3.98% | |||||||||
S&P 500 Index* | 8.09% | 0.25% | 3.69% | |||||||||
S&P 500 Dividend Only Stocks Index* | 8.78% | -0.27% | 2.58% | |||||||||
Lipper Equity Income Funds Classification Average* | 7.13% | 0.80% | 4.95% | |||||||||
Class B Shares w/o CDSC** | 6.45% | 0.99% | 3.82% | |||||||||
Class B Shares w/CDSC** | 1.45% | 0.83% | 3.82% | |||||||||
Class C Shares | 6.42% | 0.98% | 3.81% | |||||||||
Class R3 Shares | 6.93% | 1.47% | 4.38% | |||||||||
Class I Shares | 7.56% | 2.01% | 4.86% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -0.19% | 0.24% | 3.49% | |||||||||
Class A Shares at maximum Offering Price | -5.90% | -0.94% | 2.88% | |||||||||
Class B Shares w/o CDSC** | -0.92% | -0.50% | 2.72% | |||||||||
Class B Shares w/CDSC** | -5.84% | -0.66% | 2.72% | |||||||||
Class C Shares | -0.88% | -0.50% | 2.73% | |||||||||
Class R3 Shares | -0.44% | -0.02% | 3.30% | |||||||||
Class I Shares | 0.13% | 0.50% | 3.75% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.15% | |||
Class B Shares | 1.90% | |||
Class C Shares | 1.90% | |||
Class R3 Shares | 1.40% | |||
Class I Shares | 0.90% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. |
| 16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 17 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Large Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 1.98% | -3.07% | 2.45% | |||||||||
Class A Shares at maximum Offering Price | -3.86% | -4.21% | 1.85% | |||||||||
Russell 1000 Value Index* | 6.16% | -2.05% | 4.57% | |||||||||
Lipper Large-Cap Value Funds Classification Average* | 4.15% | -2.05% | 3.60% | |||||||||
Class B Shares w/o CDSC** | 1.22% | -3.79% | 1.69% | |||||||||
Class B Shares w/CDSC** | -3.78% | -3.94% | 1.69% | |||||||||
Class C Shares | 1.28% | -3.79% | 1.68% | |||||||||
Class R3 Shares | 1.74% | -3.32% | 2.25% | |||||||||
Class I Shares | 2.22% | -2.83% | 2.70% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -6.91% | -4.90% | 1.27% | |||||||||
Class A Shares at maximum Offering Price | -12.24% | 6.02% | 0.68% | |||||||||
Class B Shares w/o CDSC** | -7.65% | -5.62% | 0.52% | |||||||||
Class B Shares w/CDSC** | -12.25% | -5.77% | 0.52% | |||||||||
Class C Shares | -7.59% | -5.60% | 0.51% | |||||||||
Class R3 Shares | -7.12% | -5.13% | 1.09% | |||||||||
Class I Shares | -6.71% | -4.67% | 1.53% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 1.21% | |||
Class B Shares | 1.96% | |||
Class C Shares | 1.96% | |||
Class R3 Shares | 1.46% | |||
Class I Shares | 0.96% | |||
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. |
| 18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 19 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Mid Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -0.64% | -0.60% | 7.27% | |||||||||
Class A Shares at maximum Offering Price | -6.33% | -1.77% | 6.64% | |||||||||
Russell Midcap Value Index* | 5.83% | 0.73% | 8.76% | |||||||||
Lipper Mid-Cap Value Funds Classification Average* | 4.19% | 0.39% | 7.63% | |||||||||
Class B Shares w/o CDSC** | -1.35% | -1.33% | 6.49% | |||||||||
Class B Shares w/CDSC** | -6.27% | -1.50% | 6.49% | |||||||||
Class C Shares | -1.35% | -1.34% | 6.47% | |||||||||
Class R3 Shares | -0.87% | -0.84% | 7.09% | |||||||||
Class I Shares | -0.42% | -0.35% | 7.54% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -8.68% | -2.45% | 6.12% | |||||||||
Class A Shares at maximum Offering Price | -13.94% | -3.60% | 5.49% | |||||||||
Class B Shares w/o CDSC** | -9.29% | -3.17% | 5.34% | |||||||||
Class B Shares w/CDSC** | -13.81% | -3.34% | 5.34% | |||||||||
Class C Shares | -9.36% | -3.18% | 5.33% | |||||||||
Class R3 Shares | -8.84% | -2.69% | 5.94% | |||||||||
Class I Shares | -8.43% | -2.21% | 6.39% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
| Expense Ratios as of Most Recent Prospectus | ||||||||
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.39% | 1.34% | ||||||
Class B Shares | 2.14% | 2.09% | ||||||
Class C Shares | 2.14% | 2.09% | ||||||
Class R3 Shares | 1.64% | 1.59% | ||||||
Class I Shares | 1.14% | 1.09% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.34%, 2.09%, 2.09%, 1.59% and 1.09%, respectively, for Class A, Class B, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. |
| 20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 21 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Small Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 10.14% | 0.07% | 7.39% | |||||||||
Class A Shares at maximum Offering Price | 3.76% | -1.11% | 6.76% | |||||||||
Russell 2000 Value Index* | 3.54% | -1.42% | 7.63% | |||||||||
Lipper Small-Cap Value Funds Classification Average* | 4.25% | 0.36% | 8.01% | |||||||||
Class C Shares | 9.36% | -0.67% | 6.60% | |||||||||
Class R3 Shares | 9.89% | -0.16% | 7.21% | |||||||||
Class I Shares | 10.43% | 0.32% | 7.66% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | -0.10% | -2.19% | 5.99% | |||||||||
Class A Shares at maximum Offering Price | -5.87% | -3.34% | 5.36% | |||||||||
Class C Shares | -0.94% | -2.92% | 5.19% | |||||||||
Class R3 Shares | -0.42% | -2.42% | 5.81% | |||||||||
Class I Shares | 0.00% | -1.97% | 6.24% | |||||||||
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.84% | 1.61% | ||||||
Class C Shares | 2.59% | 2.36% | ||||||
Class R3 Shares | 2.09% | 1.86% | ||||||
Class I Shares | 1.59% | 1.36% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed 1.50%, 2.25%, 1.75% and 1.25%, respectively, for Class A, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| 22 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 23 |
Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen Equity Income Fund
Portfolio Allocation1
Nuveen Large Cap Value Fund
Portfolio Allocation1
Nuveen Mid Cap Value Fund
Portfolio Allocation1
Nuveen Small Cap Value Fund
Portfolio Allocation1
Portfolio Composition1 | ||||
| Financials | 15.7% | |||
| Information Technology | 14.7% | |||
| Energy | 14.1% | |||
| Industrials | 10.6% | |||
| Consumer Discretionary | 10.1% | |||
| Health Care | 9.8% | |||
| Consumer Staples | 8.2% | |||
| Materials | 6.1% | |||
| Telecommunication Services | 5.9% | |||
| Short-Term Investments | 1.8% | |||
| Other | 3.0% | |||
| Portfolio Composition1 | ||||
| Financials | 22.3% | |||
| Health Care | 14.5% | |||
| Energy | 13.0% | |||
| Consumer Discretionary | 11.2% | |||
| Information Technology | 8.4% | |||
| Industrials | 7.7% | |||
| Consumer Staples | 7.0% | |||
| Utilities | 6.6% | |||
| Telecommunication Services | 5.2% | |||
| Short-Term Investments | 0.8% | |||
| Other | 3.3% | |||
| Portfolio Composition1 | ||||
| Financials | 26.0% | |||
| Consumer Discretionary | 16.3% | |||
| Utilities | 11.9% | |||
| Industrials | 9.3% | |||
| Energy | 8.5% | |||
| Health Care | 7.3% | |||
| Information Technology | 6.8% | |||
| Materials | 5.6% | |||
| Consumer Staples | 5.5% | |||
| Short-Term Investment | 1.2% | |||
| Other | 1.6% | |||
| Portfolio Composition1 | ||||
| Financials | 27.0% | |||
| Industrials | 16.7% | |||
| Information Technology | 15.3% | |||
| Consumer Discretionary | 11.9% | |||
| Materials | 6.5% | |||
| Energy | 6.2% | |||
| Health Care | 5.6% | |||
| Investment Companies | 1.1% | |||
| Short-Term Investment | 2.6% | |||
| Other | 7.1% | |||
| Top Five Common Stock Holdings2 | ||||
| Chevron | 3.3% | |||
| Verizon Communications | 3.1% | |||
| Exxon Mobil | 2.9% | |||
| Pfizer | 2.7% | |||
| Royal Dutch Petroleum, ADR | 2.4% | |||
| Top Five Common Stock Holdings2 | ||||
| JPMorgan Chase | 3.6% | |||
| Pfizer | 3.6% | |||
| Verizon Communications | 3.3% | |||
| Johnson & Johnson | 2.7% | |||
| ACE | 2.6% | |||
| Top Five Common Stock Holdings2 | ||||
| Pinnacle West Capital | 2.0% | |||
| Macy’s | 2.0% | |||
| NV Energy | 2.0% | |||
| Ameriprise Financial | 2.0% | |||
| Unum Group | 1.9% | |||
| Top Five Common Stock Holdings2 | ||||
| Triumph Group | 2.4% | |||
| Sally Beauty Holdings | 1.9% | |||
| Affiliated Managers Group | 1.7% | |||
| Home Properties – REIT | 1.7% | |||
| Group 1 Automotive | 1.7% | |||
| 1 | As a percentage of total investments (excluding investments purchased with collateral from securities lending) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 24 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Equity Income Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 922.20 | $ | 918.50 | $ | 918.40 | $ | 920.10 | $ | 923.30 | $ | 1,019.41 | $ | 1,015.63 | $ | 1,015.63 | $ | 1,018.15 | $ | 1,020.67 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 5.57 | $ | 9.19 | $ | 9.19 | $ | 6.78 | $ | 4.36 | $ | 5.85 | $ | 9.65 | $ | 9.65 | $ | 7.12 | $ | 4.58 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.15%, 1.90%, 1.90%, 1.40% and ..90% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Large Cap Value Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 878.20 | $ | 875.00 | $ | 875.20 | $ | 876.90 | $ | 879.40 | $ | 1,018.80 | $ | 1,015.02 | $ | 1,015.02 | $ | 1,017.54 | $ | 1,020.06 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.01 | $ | 9.55 | $ | 9.55 | $ | 7.14 | $ | 4.83 | $ | 6.46 | $ | 10.26 | $ | 10.26 | $ | 7.73 | $ | 5.19 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.27%, 2.02%, 2.02%, 1.52% and 1.02% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Mid Cap Value Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 855.10 | $ | 852.20 | $ | 852.20 | $ | 854.30 | $ | 856.30 | $ | 1,018.45 | $ | 1,014.68 | $ | 1,014.73 | $ | 1,017.24 | $ | 1,019.51 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 6.27 | $ | 9.76 | $ | 9.76 | $ | 7.43 | $ | 5.10 | $ | 6.75 | $ | 10.53 | $ | 10.48 | $ | 7.96 | $ | 5.69 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.34%, 2.09%, 2.09%, 1.59% and 1.09% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 25 |
Expense Examples (Unaudited) (continued)
Nuveen Small Cap Value Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 889.80 | $ | 886.60 | $ | 888.80 | $ | 890.70 | $ | 1,017.64 | $ | 1,013.86 | $ | 1,016.38 | $ | 1,018.90 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 7.14 | $ | 10.70 | $ | 8.33 | $ | 5.96 | $ | 7.53 | $ | 11.42 | $ | 8.89 | $ | 6.36 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.50%, 2.25%, 1.75% and 1.25% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| 26 | Nuveen Investments |
Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Nuveen Equity Income Fund (formerly First American Equity Income Fund)
Nuveen Large Cap Value Fund (formerly First American Large Cap Value Fund)
Nuveen Mid Cap Value Fund (formerly First American Mid Cap Value Fund)
Nuveen Small Cap Value Fund (formerly First American Small Cap Value Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments of Nuveen Equity Income Fund (formerly First American Equity Income Fund), Nuveen Large Cap Value Fund (formerly First American Large Cap Value Fund), Nuveen Mid Cap Value Fund (formerly First American Mid Cap Value Fund), and Nuveen Small Cap Value Fund (formerly First American Small Cap Value Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the ”Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen Equity Income Fund (formerly First American Equity Income Fund), Nuveen Large Cap Value Fund (formerly First American Large Cap Value Fund), Nuveen Mid Cap Value Fund (formerly First American Mid Cap Value Fund), and Nuveen Small Cap Value Fund (formerly First American Small Cap Value Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| Nuveen Investments | 27 |
Nuveen Equity Income Fund
(formerly known as First American Equity Income Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 99.0% | ||||||||||||||
Consumer Discretionary – 10.2% | ||||||||||||||
| 381,702 | Brunswick q | $ | 6,740,857 | |||||||||||
| 577,062 | Cinemark Holdings q | 11,927,871 | ||||||||||||
| 581,344 | Foot Locker q | 12,708,180 | ||||||||||||
| 244,915 | Hasbro | 9,321,465 | ||||||||||||
| 329,956 | Home Depot q | 11,812,425 | ||||||||||||
| 342,240 | Mattel | 9,664,858 | ||||||||||||
| 191,750 | McDonald’s | 17,803,988 | ||||||||||||
| 335,384 | Starbucks | 14,200,159 | ||||||||||||
| 280,002 | Yum! Brands | 14,999,707 | ||||||||||||
Total Consumer Discretionary | 109,179,510 | |||||||||||||
Consumer Staples – 8.3% | ||||||||||||||
| 396,790 | Altria Group q | 10,931,565 | ||||||||||||
| 288,982 | ConAgra Foods | 7,319,914 | ||||||||||||
| 174,828 | Kimberly-Clark | 12,187,260 | ||||||||||||
| 456,766 | Kraft Foods, Class A | 16,069,028 | ||||||||||||
| 235,216 | Philip Morris International | 16,434,542 | ||||||||||||
| 404,054 | Sysco | 11,200,377 | ||||||||||||
| 432,837 | Unilever q | 14,945,862 | ||||||||||||
Total Consumer Staples | 89,088,548 | |||||||||||||
Energy – 14.2% | ||||||||||||||
| �� | 174,181 | Anadarko Petroleum | 13,673,209 | |||||||||||
| 338,018 | Chevron q | 35,508,791 | ||||||||||||
| 159,078 | ConocoPhillips | 11,079,783 | ||||||||||||
| 339,723 | Enbridge Energy Partners q | 10,341,168 | ||||||||||||
| 358,245 | Exterran Partners q | 8,812,827 | ||||||||||||
| 393,579 | Exxon Mobil | 30,734,584 | ||||||||||||
| 94,205 | Occidental Petroleum | 8,755,413 | ||||||||||||
| 356,187 | Royal Dutch Petroleum, ADR q | 25,257,220 | ||||||||||||
| 117,082 | Schlumberger | 8,602,014 | ||||||||||||
Total Energy | 152,765,009 | |||||||||||||
Financials – 15.9% | ||||||||||||||
| 408,127 | Aflac q | 18,402,446 | ||||||||||||
| 644,406 | Annaly Capital Management – REIT q | 10,858,241 | ||||||||||||
| 465,594 | BankUnited q | 10,145,293 | ||||||||||||
| 286,495 | Capital One Financial q | 13,081,362 | ||||||||||||
| 214,259 | Community Bank System q | 5,476,460 | ||||||||||||
| 542,685 | Fifth Third Bancorp | 6,517,647 | ||||||||||||
| 44,557 | Goldman Sachs Group | 4,881,219 | ||||||||||||
| 722,343 | JPMorgan Chase | 25,108,643 | ||||||||||||
| 164,409 | Liberty Property Trust – REIT q | 5,261,088 | ||||||||||||
| 110,343 | Mid-America Apartment Communities – REIT q | 6,885,403 | ||||||||||||
| 197,780 | National Retail Properties – REIT | 5,389,505 | ||||||||||||
| 772,938 | Old Republic International q | 6,832,772 | ||||||||||||
| 350,431 | Prudential Financial q | 18,993,360 | ||||||||||||
| 730,400 | Redwood Trust – REIT q | 8,487,248 | ||||||||||||
| 451,778 | State Street q | 18,247,313 | ||||||||||||
| 100,215 | Ventas – REIT q | 5,572,956 | ||||||||||||
Total Financials | 170,140,956 | |||||||||||||
| 28 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care – 9.8% | ||||||||||||||
| 337,083 | Abbott Laboritories | $ | 18,158,661 | |||||||||||
| 386,050 | Bristol-Myers Squibb q | 12,195,320 | ||||||||||||
| 279,723 | GlaxoSmithKline, ADR | 12,528,793 | ||||||||||||
| 109,265 | Humana | 9,275,506 | ||||||||||||
| 280,556 | Johnson & Johnson q | 18,065,001 | ||||||||||||
| 1,493,236 | Pfizer | 28,759,725 | ||||||||||||
| 132,740 | UnitedHealth Group | 6,370,193 | ||||||||||||
Total Health Care | 105,353,199 | |||||||||||||
Industrials – 10.7% | ||||||||||||||
| 195,404 | 3M q | 15,440,824 | ||||||||||||
| 128,284 | Boeing | 8,439,804 | ||||||||||||
| 379,252 | Emerson Electric q | 18,249,606 | ||||||||||||
| 123,615 | General Dynamics | 7,934,847 | ||||||||||||
| 1,312,530 | General Electric | 21,932,376 | ||||||||||||
| 80,906 | Hubbell, Class B | 4,837,370 | ||||||||||||
| 391,672 | Republic Services | 11,146,985 | ||||||||||||
| 145,030 | United Parcel Service, Class B q | 10,186,907 | ||||||||||||
| 210,641 | United Technologies q | 16,425,785 | ||||||||||||
Total Industrials | 114,594,504 | |||||||||||||
Information Technology – 14.8% | ||||||||||||||
| 223,784 | Automatic Data Processing q | 11,710,617 | ||||||||||||
| 814,206 | Cisco Systems | 15,087,237 | ||||||||||||
| 781,205 | Intel | 19,170,771 | ||||||||||||
| 43,971 | MasterCard, Class A | 15,268,490 | ||||||||||||
| 499,776 | Maxim Integrated Products q | 13,074,140 | ||||||||||||
| 767,965 | Microsoft | 20,450,908 | ||||||||||||
| 445,413 | Molex, Class A | 9,086,425 | ||||||||||||
| 385,405 | Oracle | 12,629,722 | ||||||||||||
| 239,220 | QUALCOMM | 12,343,752 | ||||||||||||
| 862,382 | Seagate Technology PLC | 13,927,469 | ||||||||||||
| 303,715 | Texas Instruments | 9,333,162 | ||||||||||||
| 75,245 | Visa, Class A q | 7,017,349 | ||||||||||||
Total Information Technology | 159,100,042 | |||||||||||||
Materials – 6.1% | ||||||||||||||
| 392,016 | Dow Chemical | 10,929,406 | ||||||||||||
| 250,967 | E.I. Du Pont de Nemours q | 12,063,984 | ||||||||||||
| 254,734 | Freeport-McMoRan Copper & Gold | 10,255,591 | ||||||||||||
| 723,602 | Huntsman | 8,495,087 | ||||||||||||
| 140,993 | PPG Industries | 12,183,205 | ||||||||||||
| 115,396 | Praxair | 11,732,311 | ||||||||||||
Total Materials | 65,659,584 | |||||||||||||
Telecommunication Services – 6.0% | ||||||||||||||
| 416,302 | CenturyTel | 14,678,809 | ||||||||||||
| 902,685 | Verizon Communications q | 33,381,291 | ||||||||||||
| 1,302,639 | Windstream q | 15,853,117 | ||||||||||||
Total Telecommunication Services | 63,913,217 | |||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments
Nuveen Equity Income Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Utilities – 3.0% | ||||||||||||||
| 555,660 | CenterPoint Energy | $ | 11,579,954 | |||||||||||
| 311,045 | PPL q | 9,135,392 | ||||||||||||
| 402,239 | Westar Energy q | 10,965,035 | ||||||||||||
Total Utilities | 31,680,381 | |||||||||||||
Total Common Stocks (Cost $833,777,322) | 1,061,474,950 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENT PURCHASED WITH PROCEEDS FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 30.0% | ||||||||||||||
| 321,455,317 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 321,455,317 | |||||||||||
Total Investments Purchased With Proceeds From Securities Lending (Cost $321,455,317) | 321,455,317 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.8% | ||||||||||||||
| $ | 19,972,582 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 19,972,582 | ||||||||||
Total Short-Term Investments (Cost $19,972,582) | 19,972,582 | |||||||||||||
Total Investments (Cost $1,175,205,221) – 130.8% | 1,402,902,849 | |||||||||||||
Other Assets Less Liabilities - (30.8)% | (330,373,152 | ) | ||||||||||||
Net Assets – 100.0% | $ | 1,072,529,697 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ADR | American Depositary Receipt |
| REIT | Real Estate Investment Trust |
| 30 | Nuveen Investments |
Portfolio of Investments
Nuveen Large Cap Value Fund
(formerly known as First American Large Cap Value Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 99.1% | ||||||||||||||||
Consumer Discretionary – 11.2% | ||||||||||||||||
| 26,275 | Bed Bath & Beyond q — | $ | 1,624,846 | |||||||||||||
| 130,579 | CBS, Class B | 3,370,244 | ||||||||||||||
| 151,735 | Comcast, Class A q | 3,558,186 | ||||||||||||||
| 78,451 | Foot Locker q | 1,714,939 | ||||||||||||||
| 122,812 | Macy’s | 3,749,450 | ||||||||||||||
| 95,405 | Wyndham Worldwide q | 3,212,286 | ||||||||||||||
Total Consumer Discretionary | 17,229,951 | |||||||||||||||
Consumer Staples – 7.0% | ||||||||||||||||
| 42,677 | Coca-Cola | 2,915,693 | ||||||||||||||
| 38,962 | Corn Products International | 1,889,657 | ||||||||||||||
| 114,570 | Dean Foods — | 1,113,620 | ||||||||||||||
| 47,631 | Philip Morris International | 3,327,978 | ||||||||||||||
| 48,286 | Walgreen | 1,603,095 | ||||||||||||||
Total Consumer Staples | 10,850,043 | |||||||||||||||
Energy – 13.0% | ||||||||||||||||
| 44,244 | Anadarko Petroleum | 3,473,154 | ||||||||||||||
| 37,471 | Chevron q | 3,936,329 | ||||||||||||||
| 50,857 | Halliburton | 1,900,017 | ||||||||||||||
| 33,123 | National Oilwell Varco q | 2,362,664 | ||||||||||||||
| 16,783 | Noble Energy | 1,499,393 | ||||||||||||||
| 21,713 | Occidental Petroleum | 2,018,006 | ||||||||||||||
| 20,317 | Pioneer Natural Resources q | 1,704,596 | ||||||||||||||
| 103,452 | The Williams Companies | 3,114,940 | ||||||||||||||
Total Energy | 20,009,099 | |||||||||||||||
Financials – 22.3% | ||||||||||||||||
| 55,980 | ACE | 4,038,957 | ||||||||||||||
| 52,380 | Ameriprise Financial | 2,445,098 | ||||||||||||||
| 52,738 | Capital One Financial q | 2,408,017 | ||||||||||||||
| 106,113 | Citigroup | 3,352,110 | ||||||||||||||
| 159,395 | JPMorgan Chase | 5,540,570 | ||||||||||||||
| 85,632 | Lincoln National q | 1,631,290 | ||||||||||||||
| 69,475 | Marsh & McLennan | 2,127,325 | ||||||||||||||
| 62,683 | PNC Financial Services Group | 3,366,704 | ||||||||||||||
| 60,656 | Prudential Financial q | 3,287,555 | ||||||||||||||
| 76,351 | State Street q | 3,083,817 | ||||||||||||||
| 118,577 | Wells Fargo | 3,072,330 | ||||||||||||||
Total Financials | 34,353,773 | |||||||||||||||
Health Care – 14.5% | ||||||||||||||||
| 51,921 | CIGNA | 2,302,177 | ||||||||||||||
| 47,533 | Covidien q | 2,235,952 | ||||||||||||||
| 85,770 | Gilead Sciences — | 3,573,178 | ||||||||||||||
| 63,647 | Johnson & Johnson q | 4,098,231 | ||||||||||||||
| 282,735 | Pfizer | 5,445,476 | ||||||||||||||
| 28,227 | St. Jude Medical | 1,100,853 | ||||||||||||||
| 74,757 | UnitedHealth Group | 3,587,589 | ||||||||||||||
Total Health Care | 22,343,456 | |||||||||||||||
| Nuveen Investments | 31 |
Portfolio of Investments
Nuveen Large Cap Value Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials – 7.7% | ||||||||||||||
| 123,386 | CSX | $ | 2,740,403 | |||||||||||
| 27,955 | Fluor | 1,589,242 | ||||||||||||
| 126,082 | General Electric | 2,106,830 | ||||||||||||
| 114,744 | Republic Services | 3,265,614 | ||||||||||||
| 48,353 | Tyco International | 2,202,479 | ||||||||||||
Total Industrials | 11,904,568 | |||||||||||||
Information Technology – 8.3% | ||||||||||||||
| 60,473 | Arrow Electronics q — | 2,180,052 | ||||||||||||
| 77,858 | Electronic Arts — | 1,817,984 | ||||||||||||
| 149,044 | Intel q | 3,657,540 | ||||||||||||
| 6,743 | MasterCard, Class A | 2,341,439 | ||||||||||||
| 87,122 | Oracle | 2,854,988 | ||||||||||||
Total Information Technology | 12,852,003 | |||||||||||||
Materials – 3.3% | ||||||||||||||
| 26,647 | LyondellBasell Industries | 875,620 | ||||||||||||
| 85,713 | MeadWestvaco | 2,392,250 | ||||||||||||
| 21,658 | PPG Industries | 1,871,468 | ||||||||||||
Total Materials | 5,139,338 | |||||||||||||
Telecommunication Services – 5.2% | ||||||||||||||
| 84,549 | CenturyLink q | 2,981,198 | ||||||||||||
| 138,257 | Verizon Communications q | 5,112,744 | ||||||||||||
Total Telecommunication Services | 8,093,942 | |||||||||||||
Utilities – 6.6% | ||||||||||||||
| 86,871 | American Water Works | 2,652,172 | ||||||||||||
| 100,284 | Calpine q — | 1,521,308 | ||||||||||||
| 48,426 | Exelon q | 2,149,630 | ||||||||||||
| 17,397 | ONEOK q | 1,323,042 | ||||||||||||
| 57,318 | Pinnacle West Capital | 2,612,554 | ||||||||||||
Total Utilities | 10,258,706 | |||||||||||||
Total Common Stocks (Cost $154,305,571) | 153,034,879 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 27.6% | ||||||||||||||
| 42,625,398 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 42,625,398 | |||||||||||
Total Investments Purchased With Proceeds From Securities Lending (Cost $42,625,398) | 42,625,398 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.9% | ||||||||||||||
| $ | 1,306,013 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 1,306,013 | ||||||||||
Total Short-Term Investments (Cost $1,306,013) | 1,306,013 | |||||||||||||
Total Investments (Cost $198,236,982) – 127.6% | 196,966,290 | |||||||||||||
Other Assets Less Liabilities – (27.6)% | (42,589,713 | ) | ||||||||||||
Net Assets – 100.0% | $ | 154,376,577 | ||||||||||||
| 32 | Nuveen Investments |
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| Nuveen Investments | 33 |
Portfolio of Investments
Nuveen Mid Cap Value Fund
(formerly known as First American Mid Cap Value Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 99.3% | ||||||||||||||
Consumer Discretionary – 16.4% | ||||||||||||||
| 82,762 | Ascena Retail Group — q | $ | 2,391,822 | |||||||||||
| 101,893 | CBS, Class B | 2,629,858 | ||||||||||||
| 161,085 | Cinemark Holdings q | 3,329,627 | ||||||||||||
| 150,959 | D.R. Horton | 1,680,174 | ||||||||||||
| 206,175 | Dana Holding — q | 2,915,315 | ||||||||||||
| 172,157 | Foot Locker q | 3,763,352 | ||||||||||||
| 95,195 | GameStop, Class A — q | 2,434,136 | ||||||||||||
| 125,505 | Jarden q | 4,019,925 | ||||||||||||
| 150,880 | Macy’s | 4,606,366 | ||||||||||||
| 102,187 | Mattel q | 2,885,761 | ||||||||||||
| 49,293 | Tupperware Brands | 2,787,026 | ||||||||||||
| 128,921 | Wyndham Worldwide | 4,340,770 | ||||||||||||
Total Consumer Discretionary | 37,784,132 | |||||||||||||
Consumer Staples – 5.5% | ||||||||||||||
| 71,714 | Corn Products International | 3,478,129 | ||||||||||||
| 176,119 | Dean Foods — | 1,711,877 | ||||||||||||
| 56,519 | JM Smucker | 4,353,093 | ||||||||||||
| 29,235 | Lorillard | 3,235,145 | ||||||||||||
Total Consumer Staples | 12,778,244 | |||||||||||||
Energy – 8.5% | ||||||||||||||
| 36,594 | Bill Barrett — q | 1,522,310 | ||||||||||||
| 33,401 | Cameron International — | 1,641,325 | ||||||||||||
| 41,450 | Concho Resources — q | 3,926,144 | ||||||||||||
| 52,620 | HollyFrontier | 1,614,908 | ||||||||||||
| 27,255 | Noble Energy | 2,434,962 | ||||||||||||
| 42,802 | Oil States International — q | 2,979,447 | ||||||||||||
| 29,792 | Pioneer Natural Resources q | 2,499,549 | ||||||||||||
| 20,900 | SM Energy | 1,732,819 | ||||||||||||
| 51,669 | Valero Energy | 1,271,057 | ||||||||||||
Total Energy | 19,622,521 | |||||||||||||
Financials – 26.2% | ||||||||||||||
| 47,207 | ACE | 3,405,985 | ||||||||||||
| 20,409 | Affiliated Managers Group — | 1,890,078 | ||||||||||||
| 97,363 | Ameriprise Financial | 4,544,905 | ||||||||||||
| 109,486 | Arch Capital Group — q | 3,938,211 | ||||||||||||
| 26,422 | AvalonBay Communities – REIT q | 3,532,357 | ||||||||||||
| 80,923 | BankUnited q | 1,763,312 | ||||||||||||
| 50,616 | BOK Financial q | 2,643,168 | ||||||||||||
| 34,384 | Boston Properties – REIT q | 3,403,672 | ||||||||||||
| 160,001 | East West Bancorp | 3,115,219 | ||||||||||||
| 47,406 | Endurance Specialty Holdings | 1,763,503 | ||||||||||||
| 33,028 | Federal Realty Investment Trust – REIT q | 2,931,565 | ||||||||||||
| 287,424 | Fifth Third Bancorp | 3,451,962 | ||||||||||||
| 125,035 | Invesco | 2,509,452 | ||||||||||||
| 95,178 | Lazard, Class A q | 2,602,167 | ||||||||||||
| 157,218 | Lincoln National q | 2,995,003 | ||||||||||||
| 124,509 | Marsh & McLennan | 3,812,466 | ||||||||||||
| 319,075 | SLM | 4,361,755 | ||||||||||||
| 183,221 | Unum Group q | 4,367,989 | ||||||||||||
| 56,510 | Ventas – REIT q | 3,142,521 | ||||||||||||
Total Financials | 60,175,290 | |||||||||||||
| 34 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care – 7.4% | ||||||||||||||
| 61,560 | AmerisourceBergen q | $ | 2,511,648 | |||||||||||
| 109,735 | CareFusion — | 2,809,216 | ||||||||||||
| 77,056 | CIGNA | 3,416,663 | ||||||||||||
| 76,593 | Hill-Rom Holdings q | 2,578,886 | ||||||||||||
| 39,688 | Humana | 3,369,115 | ||||||||||||
| 121,446 | Impax Laboratories — q | 2,296,544 | ||||||||||||
Total Health Care | 16,982,072 | |||||||||||||
Industrials – 9.3% | ||||||||||||||
| 76,095 | AGCO — | 3,335,244 | ||||||||||||
| 43,028 | Dover q | 2,389,345 | ||||||||||||
| 41,780 | Fluor | 2,375,193 | ||||||||||||
| 9,105 | Goodrich | 1,116,546 | ||||||||||||
| 84,917 | Ingersoll-Rand q | 2,643,466 | ||||||||||||
| 28,816 | Parker Hannifin | 2,349,945 | ||||||||||||
| 140,919 | Republic Services | 4,010,555 | ||||||||||||
| 134,410 | Werner Enterprises q | 3,185,517 | ||||||||||||
Total Industrials | 21,405,811 | |||||||||||||
Information Technology – 6.8% | ||||||||||||||
| 112,104 | Amdocs — | 3,365,362 | ||||||||||||
| 93,755 | Arrow Electronics — | 3,379,868 | ||||||||||||
| 70,495 | Avago Technologies | 2,380,616 | ||||||||||||
| 147,067 | Electronic Arts — | 3,434,014 | ||||||||||||
| 61,222 | SanDisk — q | 3,102,119 | ||||||||||||
Total Information Technology | 15,661,979 | |||||||||||||
Materials – 5.6% | ||||||||||||||
| 52,301 | Celanese, Class A q | 2,277,709 | ||||||||||||
| 80,117 | Crown Holdings — | 2,707,153 | ||||||||||||
| 109,322 | MeadWestvaco | 3,051,177 | ||||||||||||
| 108,592 | Packaging Corporation of America | 2,832,079 | ||||||||||||
| 25,398 | Walter Energy | 1,921,359 | ||||||||||||
Total Materials | 12,789,477 | |||||||||||||
Telecommunication Services – 1.6% | ||||||||||||||
| 124,603 | MetroPCS Communications — | 1,059,126 | ||||||||||||
| 219,465 | Windstream q | 2,670,889 | ||||||||||||
Total Telecommunication Services | 3,730,015 | |||||||||||||
Utilities – 12.0% | ||||||||||||||
| 128,397 | American Water Works | 3,919,961 | ||||||||||||
| 282,028 | Calpine — | 4,278,365 | ||||||||||||
| 283,743 | NV Energy | 4,551,238 | ||||||||||||
| 83,541 | OGE Energy | 4,322,411 | ||||||||||||
| 38,131 | ONEOK q | 2,899,863 | ||||||||||||
| 101,985 | Pinnacle West Capital | 4,648,476 | ||||||||||||
| 86,302 | Public Service Enterprise Group q | 2,908,377 | ||||||||||||
Total Utilities | 27,528,691 | |||||||||||||
Total Common Stocks (Cost $225,986,086) | 228,458,232 | |||||||||||||
| Nuveen Investments | 35 |
Portfolio of Investments
Nuveen Mid Cap Value Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 33.1% | ||||||||||||||
| 76,049,862 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 76,049,862 | |||||||||||
Total Investments Purchased With Proceeds From Securities Lending (Cost $76,049,862) | 76,049,862 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENT – 1.2% | ||||||||||||||
| $ | 2,807,180 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 2,807,180 | ||||||||||
Total Short-Term Investment (Cost $2,807,180) | 2,807,180 | |||||||||||||
Total Investments (Cost $304,843,128) – 133.6% | 307,315,274 | |||||||||||||
Other Assets Less Liabilities – (33.6)% | (77,232,617 | ) | ||||||||||||
Net Assets – 100.0% | $ | 230,082,657 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| REIT | Real Estate Investment Trust |
| 36 | Nuveen Investments |
Portfolio of Investments
Nuveen Small Cap Value Fund
(formerly known as First American Small Cap Value Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||||
COMMON STOCKS – 96.3% | ||||||||||||||||
Consumer Discretionary – 11.9% | ||||||||||||||||
| 21,099 | Ascena Retail Group q — | $ | 609,761 | |||||||||||||
| 41,627 | Cinemark Holdings q | 860,430 | ||||||||||||||
| 26,759 | Coinstar q — | 1,277,475 | ||||||||||||||
| 60,411 | Cooper Tire & Rubber | 865,690 | ||||||||||||||
| 21,824 | Domino’s Pizza q — | 699,023 | ||||||||||||||
| 8,759 | DSW — | 458,446 | ||||||||||||||
| 30,186 | Group 1 Automotive q | 1,375,274 | ||||||||||||||
| 44,233 | La-Z-Boy | 449,407 | ||||||||||||||
| 18,372 | Men’s Wearhouse | 567,327 | ||||||||||||||
| 21,989 | P.F. Chang’s China Bistro q | 683,858 | ||||||||||||||
| 10,354 | Polaris Industries | 655,822 | ||||||||||||||
| 80,173 | Sally Beauty Holdings — | 1,538,520 | ||||||||||||||
Total Consumer Discretionary | 10,041,033 | |||||||||||||||
Consumer Staples – 1.2% | ||||||||||||||||
| 59,880 | Spartan Stores | 1,025,146 | ||||||||||||||
Energy – 6.2% | ||||||||||||||||
| 19,270 | Berry Petroleum, Class A q | 665,779 | ||||||||||||||
| 25,095 | Complete Production Services — | 823,116 | ||||||||||||||
| 31,666 | Matrix Service — | 336,293 | ||||||||||||||
| 63,536 | Newpark Resources q — | 567,376 | ||||||||||||||
| 11,346 | Oil States International q — | 789,795 | ||||||||||||||
| 37,503 | Stone Energy q — | 910,948 | ||||||||||||||
| 37,308 | Swift Energy q — | 1,142,371 | ||||||||||||||
Total Energy | 5,235,678 | |||||||||||||||
Financials – 27.0% | ||||||||||||||||
| 14,985 | Affiliated Managers Group — | 1,387,761 | ||||||||||||||
| 52,672 | Associated Estates Realty – REIT | 894,371 | ||||||||||||||
| 47,449 | Bank of the Ozarks q | 1,180,057 | ||||||||||||||
| 105,381 | Brandywine Realty Trust – REIT | 960,021 | ||||||||||||||
| 188,957 | CNO Financial Group q — | 1,180,981 | ||||||||||||||
| 45,938 | Community Bank System q | 1,174,175 | ||||||||||||||
| 122,718 | CubeSmart – REIT q | 1,203,864 | ||||||||||||||
| 31,227 | Delphi Financial Group, Class A q | 826,891 | ||||||||||||||
| 132,729 | DiamondRock Hospitality – REIT q | 1,201,197 | ||||||||||||||
| 59,014 | East West Bancorp | 1,149,003 | ||||||||||||||
| 26,612 | EZCORP, Class A — | 739,281 | ||||||||||||||
| 62,625 | FirstMerit q | 877,376 | ||||||||||||||
| 71,004 | Flushing Financial q | 870,509 | ||||||||||||||
| 60,596 | Heartland Financial USA q | 947,115 | ||||||||||||||
| 23,418 | Home Properties – REIT q | 1,379,320 | ||||||||||||||
| 63,086 | Horace Mann Educators | 848,507 | ||||||||||||||
| 13,662 | IBERIABANK q | 706,599 | ||||||||||||||
| 111,662 | JMP Group | 828,532 | ||||||||||||||
| 162,344 | MGIC Investment q — | 431,835 | ||||||||||||||
| 14,404 | SVB Financial Group q — | 661,720 | ||||||||||||||
| 39,184 | Texas Capital Bancshares q — | 1,097,152 | ||||||||||||||
| 62,852 | Webster Financial q | 1,234,413 | ||||||||||||||
| 23,021 | WSFS Financial | 915,085 | ||||||||||||||
Total Financials | 22,695,765 | |||||||||||||||
| Nuveen Investments | 37 |
Portfolio of Investments
Nuveen Small Cap Value Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Health Care – 5.6% | ||||||||||||||
| 10,411 | AMERIGROUP — | $ | 579,164 | |||||||||||
| 98,276 | BioScrip — | 638,794 | ||||||||||||
| 43,784 | Hanger Orthopedic Group — | 760,528 | ||||||||||||
| 26,581 | ICU Medical — | 1,044,899 | ||||||||||||
| 34,647 | Impax Laboratories q — | 655,175 | ||||||||||||
| 15,280 | MEDNAX — | 1,005,424 | ||||||||||||
Total Health Care | 4,683,984 | |||||||||||||
Industrials – 16.8% | ||||||||||||||
| 47,175 | Actuant, Class A q | 1,061,437 | ||||||||||||
| 79,421 | Altra Holdings q — | 1,167,489 | ||||||||||||
| 29,477 | Atlas Air Worldwide Holdings q — | 1,135,454 | ||||||||||||
| 41,546 | Douglas Dynamics | 624,021 | ||||||||||||
| 41,991 | EMCOR Group | 1,052,714 | ||||||||||||
| 27,401 | Ennis | 400,877 | ||||||||||||
| 36,422 | G&K Services, Class A | 1,105,772 | ||||||||||||
| 31,850 | General Cable q — | 893,074 | ||||||||||||
| 43,343 | GrafTech International — | 680,918 | ||||||||||||
| 59,024 | MasTec q — | 1,276,099 | ||||||||||||
| 24,385 | Old Dominion Freight Line q — | 891,759 | ||||||||||||
| 57,077 | PHH — | 1,053,071 | ||||||||||||
| 15,923 | Regal-Beloit q | 845,989 | ||||||||||||
| 32,787 | Triumph Group q | 1,904,925 | ||||||||||||
Total Industrials | 14,093,599 | |||||||||||||
Information Technology – 15.3% | ||||||||||||||
| 51,348 | Bankrate q — | 999,746 | ||||||||||||
| 47,243 | Bottomline Technologies — | 1,147,532 | ||||||||||||
| 17,561 | CACI International, Class A q — | 963,923 | ||||||||||||
| 34,795 | International Rectifier — | 845,171 | ||||||||||||
| 25,974 | Kenexa — | 594,025 | ||||||||||||
| 48,313 | MKS Instruments | 1,287,059 | ||||||||||||
| 105,938 | Perficient — | 1,009,589 | ||||||||||||
| 21,069 | Plantronics q | 703,915 | ||||||||||||
| 132,787 | PMC-Sierra — | 841,870 | ||||||||||||
| 47,407 | Polycom q — | 783,638 | ||||||||||||
| 21,018 | Progress Software — | 442,639 | ||||||||||||
| 152,374 | RF Micro Devices q — | 1,118,425 | ||||||||||||
| 14,640 | Rogers — | 632,009 | ||||||||||||
| 64,862 | TTM Technologies q — | 724,509 | ||||||||||||
| 45,691 | Virtusa — | 744,306 | ||||||||||||
Total Information Technology | 12,838,356 | |||||||||||||
Materials – 6.5% | ||||||||||||||
| 42,680 | Buckeye Technologies q | 1,290,643 | ||||||||||||
| 37,162 | Commercial Metals q | 461,924 | ||||||||||||
| 28,300 | Kraton Performance Polymers — | 556,944 | ||||||||||||
| 17,222 | Minerals Technologies | 944,454 | �� | |||||||||||
| 39,639 | Packaging Corp of America | 1,033,785 | ||||||||||||
| 9,454 | Rockwood Holdings — | 435,262 | ||||||||||||
| 16,446 | Schnitzer Steel Industries, Class A q | 769,673 | ||||||||||||
Total Materials | 5,492,685 | |||||||||||||
| 38 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Telecommunication Services – 0.9% | ||||||||||||||
| 41,457 | NTELOS Holdings | $ | 788,512 | |||||||||||
Utilities – 4.9% | ||||||||||||||
| 37,039 | Atmos Energy | 1,271,178 | ||||||||||||
| 34,490 | El Paso Electric — | 1,104,715 | ||||||||||||
| 20,633 | Southwest Gas | 814,591 | ||||||||||||
| 27,809 | UIL Holdings q | 947,731 | ||||||||||||
Total Utilities | 4,138,215 | |||||||||||||
Total Common Stocks (Cost $74,386,526) | 81,032,973 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENT COMPANIES – 1.1% | ||||||||||||||
Financials – 1.1% | ||||||||||||||
| 15,585 | iShares Dow Jones U.S. Real Estate Index Fund q | $ | 892,085 | |||||||||||
Total Investment Companies (Cost $809,244) | 892,085 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 40.0% | ||||||||||||||
| 33,680,834 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 33,680,834 | |||||||||||
Total Investments Purchased With Proceeds From Securities Lending (Cost $33,680,834) | 33,680,834 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENT – 2.6% | ||||||||||||||
| $ | 2,221,801 | First American Treasury Obligations, Class Z, 0.000% W | $ | 2,221,801 | ||||||||||
Total Short-Term Investment (Cost $2,221,801) | 2,221,801 | |||||||||||||
Total Investments (Cost $111,098,405) – 140.0% | 117,827,693 | |||||||||||||
Other Assets Less Liabilities – (40.0)% | (33,674,125 | ) | ||||||||||||
Net Assets – 100.0% | $ | 84,153,568 | ||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| REIT | Real Estate Investment Trust |
| Nuveen Investments | 39 |
Statement of Assets & Liabilities
October 31, 2011 (all dollars and shares are rounded to thousands (000), except for per share data)
| Equity Income | Large Cap Value | Mid Cap Value | Small Cap Value | |||||||||||||
Assets | ||||||||||||||||
Investments, at value (cost $853,750, $155,612, $228,793 and $77,417, respectively) | $ | 1,081,448 | $ | 154,341 | $ | 231,265 | $ | 84,147 | ||||||||
Investments purchased with collateral from securities lending | 321,455 | 42,625 | 76,050 | 33,681 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 1,326 | 172 | 110 | 18 | ||||||||||||
Due from broker | 20 | 4 | 6 | 4 | ||||||||||||
Investments sold | — | 3,574 | 5,768 | 2,437 | ||||||||||||
Shares sold | 2,337 | 247 | 76 | 40 | ||||||||||||
Other assets | 53 | 52 | 65 | 49 | ||||||||||||
Total assets | 1,406,639 | 201,015 | 313,340 | 120,376 | ||||||||||||
Liabilities | ||||||||||||||||
Payables: | ||||||||||||||||
Collateral from securities lending program | 321,455 | 42,625 | 76,050 | 33,681 | ||||||||||||
Investments purchased | 10,676 | 3,632 | 5,832 | 2,119 | ||||||||||||
Shares redeemed | 838 | 111 | 811 | 133 | ||||||||||||
Accrued expenses: | ||||||||||||||||
Management fees | 662 | 95 | 306 | 142 | ||||||||||||
12b-1 distribution and service fees | 58 | 11 | 26 | 8 | ||||||||||||
Other | 420 | 164 | 232 | 139 | ||||||||||||
Total liabilities | 334,109 | 46,638 | 83,257 | 36,222 | ||||||||||||
Net assets | $ | 1,072,530 | $ | 154,377 | $ | 230,083 | $ | 84,154 | ||||||||
Class A Shares | ||||||||||||||||
Net assets | $ | 176,954 | $ | 46,659 | $ | 52,334 | $ | 31,814 | ||||||||
Shares outstanding | 13,555 | 3,236 | 2,397 | 2,816 | ||||||||||||
Net asset value per share | $ | 13.05 | $ | 14.42 | $ | 21.83 | $ | 11.30 | ||||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 13.85 | $ | 15.30 | $ | 23.16 | $ | 11.99 | ||||||||
Class B Shares | ||||||||||||||||
Net assets | $ | 3,016 | $ | 907 | $ | 2,073 | N/A | |||||||||
Shares outstanding | 233 | 65 | 101 | N/A | ||||||||||||
Net asset value and offering price per share | $ | 12.93 | $ | 13.86 | $ | 20.52 | N/A | |||||||||
Class C Shares | ||||||||||||||||
Net assets | $ | 18,714 | $ | 1,094 | $ | 8,957 | $ | 1,498 | ||||||||
Shares outstanding | 1,449 | 78 | 427 | 151 | ||||||||||||
Net asset value and offering price per share | $ | 12.92 | $ | 14.09 | $ | 20.99 | $ | 9.93 | ||||||||
Class R3 Shares(1) | ||||||||||||||||
Net assets | $ | 12,092 | $ | 768 | $ | 15,310 | $ | 2,246 | ||||||||
Shares outstanding | 928 | 54 | 706 | 202 | ||||||||||||
Net asset value and offering price per share | $ | 13.03 | $ | 14.32 | $ | 21.70 | $ | 11.11 | ||||||||
Class I Shares(1) | ||||||||||||||||
Net assets | $ | 861,754 | $ | 104,949 | $ | 151,409 | $ | 48,596 | ||||||||
Shares outstanding | 65,507 | 7,234 | 6,886 | 4,171 | ||||||||||||
Net asset value and offering price per share | $ | 13.16 | $ | 14.51 | $ | 21.99 | $ | 11.65 | ||||||||
Net assets consist of: | ||||||||||||||||
Capital paid-in | $ | 844,619 | $ | 245,468 | $ | 291,098 | $ | 118,022 | ||||||||
Undistributed (Over-distribution of) net investment income | 1,991 | 868 | 1,501 | (11 | ) | |||||||||||
Accumulated net realized gain (loss) | (1,778 | ) | (90,688 | ) | (64,988 | ) | (40,586 | ) | ||||||||
Net unrealized appreciation (depreciation) | 227,698 | (1,271 | ) | 2,472 | 6,729 | |||||||||||
Net assets | $ | 1,072,530 | $ | 154,377 | $ | 230,083 | $ | 84,154 | ||||||||
Authorized shares | 2 billion | 2 billion | 2 billion | 2 billion | ||||||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | ||||||||
| N/A - | Small Cap Value does not offer Class B Shares. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 40 | Nuveen Investments |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| Equity Income | Large Cap Value | Mid Cap Value | Small Cap Value | |||||||||||||
Dividend and Interest income from unaffiliated investments (net of foreign tax withheld of $371, $22, $33 and $ –, respectively) | $ | 31,772 | $ | 3,797 | $ | 5,522 | $ | 1,148 | ||||||||
Interest income from affiliated investments(1) | 3 | — | — | 1 | ||||||||||||
Securities lending income | 160 | 47 | 73 | 41 | ||||||||||||
Total investment income | $ | 31,935 | $ | 3,844 | $ | 5,595 | $ | 1,190 | ||||||||
Expenses | ||||||||||||||||
Management fees | 7,514 | 1,455 | 2,789 | 953 | ||||||||||||
12b-1 service fees – Class A | 411 | 130 | 174 | 87 | ||||||||||||
12b-1 distribution and service fees – Class B | 41 | 12 | 26 | N/A | ||||||||||||
12b-1 distribution and service fees – Class C | 153 | 12 | 109 | 17 | ||||||||||||
12b-1 distribution and service fees – Class R3(2) | 22 | 4 | 91 | 12 | ||||||||||||
Administration fees(1) | 336 | 109 | 199 | 71 | ||||||||||||
Shareholders’ servicing agent fees and expenses | 585 | 205 | 299 | 172 | ||||||||||||
Custodian’s fees and expenses | 151 | 39 | 59 | 27 | ||||||||||||
Directors’ fees and expenses | 27 | 8 | 11 | 7 | ||||||||||||
Professional fees | 31 | 31 | 31 | 30 | ||||||||||||
Shareholders’ reports – printing and mailing expenses | 133 | 48 | 65 | 32 | ||||||||||||
Federal and state registration fees | 109 | 83 | 96 | 66 | ||||||||||||
Other expenses | 21 | 14 | 17 | 10 | ||||||||||||
Total expenses before expense reimbursement | 9,534 | 2,150 | 3,966 | 1,484 | ||||||||||||
Expense reimbursement | (3 | ) | — | (38 | ) | (4 | ) | |||||||||
Net expenses | 9,531 | 2,150 | 3,928 | 1,480 | ||||||||||||
Net investment income (loss) | 22,404 | 1,694 | 1,667 | (290 | ) | |||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | 5,604 | 19,196 | 42,263 | 10,390 | ||||||||||||
Redemptions in-kind | – | 15,436 | 51,352 | 27,495 | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 38,786 | (24,277 | ) | (76,035 | ) | (17,603 | ) | |||||||||
Net realized and unrealized gain (loss) | 44,390 | 10,355 | 17,580 | 20,282 | ||||||||||||
Net increase (decrease) in net assets from operations | $ | 66,794 | $ | 12,049 | $ | 19,247 | $ | 19,992 | ||||||||
| N/A | – Small Cap Value does not offer Class B Shares. |
| (1) | – For the period November 1, 2010 through December 31, 2010. |
| (2) | – Effective January 18, 2011, Class R Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares. |
See accompanying notes to financial statements.
| Nuveen Investments | 41 |
Statement of Changes in Net Assets (all dollars are rounded to thousands (000))
| Equity Income | Large Cap Value | |||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 22,404 | $ | 22,884 | $ | 1,694 | $ | 3,153 | ||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | 5,604 | 20,110 | 19,196 | 26,403 | ||||||||||||
Redemptions in-kind | — | — | 15,436 | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 38,786 | 85,170 | (24,277 | ) | 8,454 | |||||||||||
Net increase (decrease) in net assets from operations | 66,794 | 128,164 | 12,049 | 38,010 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (3,311 | ) | (2,941 | ) | (697 | ) | (728 | ) | ||||||||
Class B | (30 | ) | (112 | ) | (6 | ) | (10 | ) | ||||||||
Class C | (155 | ) | (143 | ) | (5 | ) | (7 | ) | ||||||||
Class R3(1) | (75 | ) | (12 | ) | (9 | ) | (4 | ) | ||||||||
Class I(1) | (19,550 | ) | (17,684 | ) | (2,375 | ) | (5,078 | ) | ||||||||
Decrease in net assets from distributions to shareholders | (23,121 | ) | (20,892 | ) | (3,092 | ) | (5,827 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 441,407 | 180,094 | 8,440 | 17,475 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 9,485 | 6,986 | 1,789 | 4,029 | ||||||||||||
| 450,892 | 187,080 | 10,229 | 21,504 | |||||||||||||
Cost of shares redeemed | (249,151 | ) | (150,265 | ) | (74,896 | ) | (106,527 | ) | ||||||||
Cost of redemptions in-kind | — | — | (132,685 | ) | — | |||||||||||
Net increase (decrease) in net assets from Fund share transactions | 201,741 | 36,815 | (197,352 | ) | (85,023 | ) | ||||||||||
Net increase (decrease) in net assets | 245,414 | 144,087 | (188,395 | ) | (52,840 | ) | ||||||||||
Net assets at beginning of period | 827,116 | 683,029 | 342,772 | 395,612 | ||||||||||||
Net assets at end of period | $ | 1,072,530 | $ | 827,116 | $ | 154,377 | $ | 342,772 | ||||||||
Undistributed (Over-distribution of) net investment income at end of period | $ | 1,991 | $ | 3,972 | $ | 868 | $ | 2,310 | ||||||||
| (1) – | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| 42 | Nuveen Investments |
| Mid Cap Value | Small Cap Value | |||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 1,667 | $ | 4,209 | $ | (290 | ) | $ | 173 | |||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | 42,263 | 83,856 | 10,390 | 13,113 | ||||||||||||
Redemptions in-kind | 51,352 | — | 27,495 | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments | (76,035 | ) | 34,723 | (17,603 | ) | 31,588 | ||||||||||
Net increase (decrease) in net assets from operations | 19,247 | 122,788 | 19,992 | 44,874 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (805 | ) | (1,055 | ) | — | (84 | ) | |||||||||
Class B | (10 | ) | (15 | ) | N/A | N/A | ||||||||||
Class C | (47 | ) | (46 | ) | — | — | ||||||||||
Class R3(1) | (141 | ) | (180 | ) | — | (1 | ) | |||||||||
Class I(1) | (2,981 | ) | (6,065 | ) | — | (751 | ) | |||||||||
Decrease in net assets from distributions to shareholders | (3,984 | ) | (7,361 | ) | — | (836 | ) | |||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 38,985 | 79,022 | 19,212 | 23,609 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 2,082 | 5,412 | — | 717 | ||||||||||||
| 41,067 | 84,434 | 19,212 | 24,326 | |||||||||||||
Cost of shares redeemed | (145,840 | ) | (230,729 | ) | (44,281 | ) | (34,151 | ) | ||||||||
Cost of redemptions in-kind | (261,914 | ) | — | (127,930 | ) | — | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (366,687 | ) | (146,295 | ) | (152,999 | ) | (9,825 | ) | ||||||||
Net increase (decrease) in net assets | (351,424 | ) | (30,868 | ) | (133,007 | ) | 34,213 | |||||||||
Net assets at beginning of period | 581,507 | 612,375 | 217,161 | 182,948 | ||||||||||||
Net assets at end of period | $ | 230,083 | $ | 581,507 | $ | 84,154 | $ | 217,161 | ||||||||
Undistributed (Over-distribution of) net investment income at end of period | $ | 1,501 | $ | 3,971 | $ | (11 | ) | $ | (11 | ) | ||||||
| N/A - | Small Cap Value does not offer Class B Shares. |
| (1) - | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 43 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| EQUITY INCOME | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/92) |
| |||||||||||||||||||||||||||||||
2011 | $ | 12.42 | $ | .27 | $ | .63 | $ | .90 | $ | (.27 | ) | $ | — | $ | (.27 | ) | $ | 13.05 | ||||||||||||||
2010 | 10.76 | .34 | 1.63 | 1.97 | (.31 | ) | — | (.31 | ) | 12.42 | ||||||||||||||||||||||
2009 | 10.09 | .29 | .71 | 1.00 | (.33 | ) | — | (.33 | ) | 10.76 | ||||||||||||||||||||||
2008 | 16.43 | .33 | (5.28 | ) | (4.95 | ) | (.29 | ) | (1.10 | ) | (1.39 | ) | 10.09 | |||||||||||||||||||
2007 | 15.90 | .29 | 1.96 | 2.25 | (.29 | ) | (1.43 | ) | (1.72 | ) | 16.43 | |||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||
2011 | 12.25 | .17 | .61 | .78 | (.10 | ) | — | (.10 | ) | 12.93 | ||||||||||||||||||||||
2010 | 10.61 | .24 | 1.61 | 1.85 | (.21 | ) | — | (.21 | ) | 12.25 | ||||||||||||||||||||||
2009 | 9.96 | .22 | .68 | .90 | (.25 | ) | — | (.25 | ) | 10.61 | ||||||||||||||||||||||
2008 | 16.23 | .22 | (5.19 | ) | (4.97 | ) | (.20 | ) | (1.10 | ) | (1.30 | ) | 9.96 | |||||||||||||||||||
2007 | 15.75 | .17 | 1.94 | 2.11 | (.20 | ) | (1.43 | ) | (1.63 | ) | 16.23 | |||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||
2011 | 12.26 | .17 | .62 | .79 | (.13 | ) | — | (.13 | ) | 12.92 | ||||||||||||||||||||||
2010 | 10.63 | .26 | 1.60 | 1.86 | (.23 | ) | — | (.23 | ) | 12.26 | ||||||||||||||||||||||
2009 | 9.98 | .21 | .69 | .90 | (.25 | ) | — | (.25 | ) | 10.63 | ||||||||||||||||||||||
2008 | 16.26 | .22 | (5.20 | ) | (4.98 | ) | (.20 | ) | (1.10 | ) | (1.30 | ) | 9.98 | |||||||||||||||||||
2007 | 15.78 | .17 | 1.94 | 2.11 | (.20 | ) | (1.43 | ) | (1.63 | ) | 16.26 | |||||||||||||||||||||
Class R3 (9/01)(e) |
| |||||||||||||||||||||||||||||||
2011 | 12.41 | .23 | .63 | .86 | (.24 | ) | — | (.24 | ) | 13.03 | ||||||||||||||||||||||
2010 | 10.76 | .30 | 1.64 | 1.94 | (.29 | ) | — | (.29 | ) | 12.41 | ||||||||||||||||||||||
2009 | 10.08 | .28 | .68 | .96 | (.28 | ) | — | (.28 | ) | 10.76 | ||||||||||||||||||||||
2008 | 16.41 | .29 | (5.26 | ) | (4.97 | ) | (.26 | ) | (1.10 | ) | (1.36 | ) | 10.08 | |||||||||||||||||||
2007 | 15.88 | .23 | 1.98 | 2.21 | (.25 | ) | (1.43 | ) | (1.68 | ) | 16.41 | |||||||||||||||||||||
Class I (8/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 12.53 | .31 | .64 | .95 | (.32 | ) | — | (.32 | ) | 13.16 | ||||||||||||||||||||||
2010 | 10.85 | .37 | 1.65 | 2.02 | (.34 | ) | — | (.34 | ) | 12.53 | ||||||||||||||||||||||
2009 | 10.18 | .32 | .70 | 1.02 | (.35 | ) | — | (.35 | ) | 10.85 | ||||||||||||||||||||||
2008 | 16.55 | .36 | (5.30 | ) | (4.94 | ) | (.33 | ) | (1.10 | ) | (1.43 | ) | 10.18 | |||||||||||||||||||
2007 | 16.00 | .33 | 1.98 | 2.31 | (.33 | ) | (1.43 | ) | (1.76 | ) | 16.55 | |||||||||||||||||||||
| 44 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 7.28 | % | $ | 176,954 | 1.14 | % | 2.05 | % | 1.14 | % | 2.05 | % | 33 | % | |||||||||||||
| 18.46 | 125,226 | 1.19 | 2.87 | 1.17 | 2.89 | 29 | ||||||||||||||||||||
| 10.32 | 100,059 | 1.19 | 3.00 | 1.19 | 3.00 | 48 | ||||||||||||||||||||
| (32.51 | ) | 100,824 | 1.17 | 2.45 | 1.17 | 2.45 | 32 | |||||||||||||||||||
| 15.24 | 179,379 | 1.16 | 1.83 | 1.16 | 1.83 | 20 | ||||||||||||||||||||
| 6.45 | 3,016 | 1.89 | 1.32 | 1.89 | 1.32 | 33 | ||||||||||||||||||||
| 17.59 | 5,039 | 1.94 | 2.05 | 1.92 | 2.07 | 29 | ||||||||||||||||||||
| 9.41 | 7,237 | 1.94 | 2.28 | 1.94 | 2.28 | 48 | ||||||||||||||||||||
| (32.95 | ) | 9,113 | 1.92 | 1.69 | 1.92 | 1.69 | 32 | |||||||||||||||||||
| 14.40 | 16,893 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||
| 6.42 | 18,714 | 1.89 | 1.31 | 1.89 | 1.31 | 33 | ||||||||||||||||||||
| 17.60 | 11,107 | 1.94 | 2.20 | 1.92 | 2.22 | 29 | ||||||||||||||||||||
| 9.41 | 4,921 | 1.94 | 2.23 | 1.94 | 2.23 | 48 | ||||||||||||||||||||
| (32.95 | ) | 4,625 | 1.92 | 1.69 | 1.92 | 1.69 | 32 | |||||||||||||||||||
| 14.37 | 9,241 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||
| 6.93 | 12,092 | 1.41 | 1.75 | 1.41 | 1.75 | 33 | ||||||||||||||||||||
| 18.16 | 1,204 | 1.41 | 2.48 | 1.39 | 2.50 | 29 | ||||||||||||||||||||
| 9.92 | 122 | 1.45 | 2.94 | 1.45 | 2.94 | 48 | ||||||||||||||||||||
| (32.64 | ) | 535 | 1.42 | 2.20 | 1.42 | 2.20 | 32 | |||||||||||||||||||
| 14.98 | 940 | 1.41 | 1.48 | 1.41 | 1.48 | 20 | ||||||||||||||||||||
| 7.56 | 861,754 | .89 | 2.30 | .89 | 2.31 | 33 | ||||||||||||||||||||
| 18.78 | 684,540 | .94 | 3.12 | .92 | 3.10 | 29 | ||||||||||||||||||||
| 10.51 | 570,690 | .94 | 3.25 | .94 | 3.25 | 48 | ||||||||||||||||||||
| (32.29 | ) | 574,162 | .92 | 2.70 | .92 | 2.70 | 32 | |||||||||||||||||||
| 15.54 | 1,061,433 | .91 | 2.09 | .91 | 2.09 | 20 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 45 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| LARGE CAP VALUE | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||
2011 | $ | 14.32 | $ | .08 | $ | .21 | $ | .29 | $ | (.19 | ) | $ | — | $ | (.19 | ) | $ | 14.42 | ||||||||||||||
2010 | 13.14 | .09 | 1.27 | 1.36 | (.18 | ) | — | (.18 | ) | 14.32 | ||||||||||||||||||||||
2009 | 12.88 | .18 | .22 | .40 | (.14 | ) | — | (.14 | ) | 13.14 | ||||||||||||||||||||||
2008 | 22.61 | .25 | (7.02 | ) | (6.77 | ) | (.16 | ) | (2.80 | ) | (2.96 | ) | 12.88 | |||||||||||||||||||
2007 | 22.12 | .23 | 2.19 | 2.42 | (.24 | ) | (1.69 | ) | (1.93 | ) | 22.61 | |||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||
2011 | 13.75 | (.03 | ) | .20 | .17 | (.06 | ) | — | (.06 | ) | 13.86 | |||||||||||||||||||||
2010 | 12.61 | (.01 | ) | 1.21 | 1.20 | (.06 | ) | — | (.06 | ) | 13.75 | |||||||||||||||||||||
2009 | 12.39 | .09 | .21 | .30 | (.08 | ) | — | (.08 | ) | 12.61 | ||||||||||||||||||||||
2008 | 21.92 | .11 | (6.77 | ) | (6.66 | ) | (.07 | ) | (2.80 | ) | (2.87 | ) | 12.39 | |||||||||||||||||||
2007 | 21.54 | .07 | 2.12 | 2.19 | (.12 | ) | (1.69 | ) | (1.81 | ) | 21.92 | |||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||
2011 | 13.97 | (.03 | ) | .21 | .18 | (.06 | ) | — | (.06 | ) | 14.09 | |||||||||||||||||||||
2010 | 12.81 | (.01 | ) | 1.22 | 1.21 | (.05 | ) | — | (.05 | ) | 13.97 | |||||||||||||||||||||
2009 | 12.59 | .09 | .21 | .30 | (.08 | ) | — | (.08 | ) | 12.81 | ||||||||||||||||||||||
2008 | 22.21 | .11 | (6.86 | ) | (6.75 | ) | (.07 | ) | (2.80 | ) | (2.87 | ) | 12.59 | |||||||||||||||||||
2007 | 21.81 | .07 | 2.14 | 2.21 | (.12 | ) | (1.69 | ) | (1.81 | ) | 22.21 | |||||||||||||||||||||
Class R3 (9/01)(e) |
| |||||||||||||||||||||||||||||||
2011 | 14.24 | .05 | .21 | .26 | (.18 | ) | — | (.18 | ) | 14.32 | ||||||||||||||||||||||
2010 | 13.09 | .05 | 1.26 | 1.31 | (.16 | ) | — | (.16 | ) | 14.24 | ||||||||||||||||||||||
2009 | 12.85 | .13 | .23 | .36 | (.12 | ) | — | (.12 | ) | 13.09 | ||||||||||||||||||||||
2008 | 22.57 | .20 | (6.99 | ) | (6.79 | ) | (.13 | ) | (2.80 | ) | (2.93 | ) | 12.85 | |||||||||||||||||||
2007 | 22.10 | .17 | 2.17 | 2.34 | (.18 | ) | (1.69 | ) | (1.87 | ) | 22.57 | |||||||||||||||||||||
Class I (2/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 14.41 | .15 | .18 | .33 | (.23 | ) | — | (.23 | ) | 14.51 | ||||||||||||||||||||||
2010 | 13.23 | .12 | 1.27 | 1.39 | (.21 | ) | — | (.21 | ) | 14.41 | ||||||||||||||||||||||
2009 | 12.95 | .21 | .23 | .44 | (.16 | ) | — | (.16 | ) | 13.23 | ||||||||||||||||||||||
2008 | 22.69 | .29 | (7.04 | ) | (6.75 | ) | (.19 | ) | (2.80 | ) | (2.99 | ) | 12.95 | |||||||||||||||||||
2007 | 22.19 | .29 | 2.18 | 2.47 | (.28 | ) | (1.69 | ) | (1.97 | ) | 22.69 | |||||||||||||||||||||
| 46 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 1.98 | % | $ | 46,659 | 1.24 | % | .56 | % | 1.24 | % | .56 | % | 114 | % | |||||||||||||
| 10.36 | 52,567 | 1.23 | .63 | 1.23 | .63 | 135 | ||||||||||||||||||||
| 3.24 | 55,401 | 1.22 | 1.49 | 1.22 | 1.49 | 68 | ||||||||||||||||||||
| (34.00 | ) | 60,870 | 1.19 | 1.41 | 1.19 | 1.41 | 90 | |||||||||||||||||||
| 11.60 | 113,223 | 1.17 | 1.05 | 1.17 | 1.05 | 81 | ||||||||||||||||||||
| 1.22 | 907 | 1.99 | (.20 | ) | 1.99 | (.20 | ) | 114 | ||||||||||||||||||
| 9.54 | 1,338 | 1.98 | (.10 | ) | 1.98 | (.10 | ) | 135 | ||||||||||||||||||
| 2.48 | 2,266 | 1.97 | .83 | 1.97 | .83 | 68 | ||||||||||||||||||||
| (34.51 | ) | 3,750 | 1.94 | .65 | 1.94 | .65 | 90 | |||||||||||||||||||
| 10.76 | 7,973 | 1.92 | .31 | 1.92 | .31 | 81 | ||||||||||||||||||||
| 1.28 | 1,094 | 1.99 | (.19 | ) | 1.99 | (.19 | ) | 114 | ||||||||||||||||||
| 9.45 | 1,337 | 1.98 | (.10 | ) | 1.98 | (.10 | ) | 135 | ||||||||||||||||||
| 2.47 | 2,016 | 1.97 | .76 | 1.97 | .76 | 68 | ||||||||||||||||||||
| (34.46 | ) | 2,643 | 1.94 | .66 | 1.94 | .66 | 90 | |||||||||||||||||||
| 10.71 | 4,587 | 1.92 | .31 | 1.92 | .31 | 81 | ||||||||||||||||||||
| 1.74 | 768 | 1.49 | .33 | 1.49 | .33 | 114 | ||||||||||||||||||||
| 10.04 | 794 | 1.49 | .35 | 1.49 | .35 | 135 | ||||||||||||||||||||
| 2.96 | 340 | 1.47 | 1.06 | 1.47 | 1.06 | 68 | ||||||||||||||||||||
| (34.13 | ) | 174 | 1.44 | 1.18 | 1.44 | 1.18 | 90 | |||||||||||||||||||
| 11.25 | 188 | 1.42 | .78 | 1.42 | .78 | 81 | ||||||||||||||||||||
| 2.22 | 104,949 | .99 | .96 | .99 | .96 | 114 | ||||||||||||||||||||
| 10.54 | 286,736 | .98 | .89 | .98 | .89 | 135 | ||||||||||||||||||||
| 3.54 | 335,589 | .97 | 1.76 | .97 | 1.76 | 68 | ||||||||||||||||||||
| (33.80 | ) | 401,006 | .94 | 1.66 | .94 | 1.66 | 90 | |||||||||||||||||||
| 11.83 | 726,512 | .92 | 1.30 | .92 | 1.30 | 81 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 47 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| MID CAP VALUE | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||
2011 | $ | 22.20 | $ | .07 | $ | (.19 | ) | $ | (.12 | ) | $ | (.25 | ) | $ | — | $ | (.25 | ) | $ | 21.83 | ||||||||||||
2010 | 18.28 | .12 | 4.00 | 4.12 | (.20 | ) | — | (.20 | ) | 22.20 | ||||||||||||||||||||||
2009 | 16.13 | .24 | 1.99 | 2.23 | (.08 | ) | — | (.08 | ) | 18.28 | ||||||||||||||||||||||
2008 | 27.83 | .21 | (9.92 | ) | (9.71 | ) | (.16 | ) | (1.83 | ) | (1.99 | ) | 16.13 | |||||||||||||||||||
2007 | 26.65 | .14 | 2.78 | 2.92 | (.16 | ) | (1.58 | ) | (1.74 | ) | 27.83 | |||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||
2011 | 20.87 | (.10 | ) | (.18 | ) | (.28 | ) | (.07 | ) | — | (.07 | ) | 20.52 | |||||||||||||||||||
2010 | 17.21 | (.04 | ) | 3.78 | 3.74 | (.08 | ) | — | (.08 | ) | 20.87 | |||||||||||||||||||||
2009 | 15.22 | .13 | 1.87 | 2.00 | (.01 | ) | — | (.01 | ) | 17.21 | ||||||||||||||||||||||
2008 | 26.48 | .03 | (9.39 | ) | (9.36 | ) | (.07 | ) | (1.83 | ) | (1.90 | ) | 15.22 | |||||||||||||||||||
2007 | 25.50 | (.05 | ) | 2.65 | 2.60 | (.04 | ) | (1.58 | ) | (1.62 | ) | 26.48 | ||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||
2011 | 21.36 | (.10 | ) | (.18 | ) | (.28 | ) | (.09 | ) | — | (.09 | ) | 20.99 | |||||||||||||||||||
2010 | 17.61 | (.04 | ) | 3.86 | 3.82 | (.07 | ) | — | (.07 | ) | 21.36 | |||||||||||||||||||||
2009 | 15.58 | .12 | 1.92 | 2.04 | (.01 | ) | — | (.01 | ) | 17.61 | ||||||||||||||||||||||
2008 | 27.05 | .03 | (9.60 | ) | (9.57 | ) | (.07 | ) | (1.83 | ) | (1.90 | ) | 15.58 | |||||||||||||||||||
2007 | 26.02 | (.06 | ) | 2.72 | 2.66 | (.05 | ) | (1.58 | ) | (1.63 | ) | 27.05 | ||||||||||||||||||||
Class R3 (9/01)(e) |
| |||||||||||||||||||||||||||||||
2011 | 22.05 | .01 | (.19 | ) | (.18 | ) | (.17 | ) | — | (.17 | ) | 21.70 | ||||||||||||||||||||
2010 | 18.15 | .06 | 3.99 | 4.05 | (.15 | ) | — | (.15 | ) | 22.05 | ||||||||||||||||||||||
2009 | 16.04 | .19 | 1.98 | 2.17 | (.06 | ) | — | (.06 | ) | 18.15 | ||||||||||||||||||||||
2008 | 27.72 | .15 | (9.87 | ) | (9.72 | ) | (.13 | ) | (1.83 | ) | (1.96 | ) | 16.04 | |||||||||||||||||||
2007 | 26.56 | .06 | 2.78 | 2.84 | (.10 | ) | (1.58 | ) | (1.68 | ) | 27.72 | |||||||||||||||||||||
Class I (2/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 22.37 | .15 | (.22 | ) | (.07 | ) | (.31 | ) | — | (.31 | ) | 21.99 | ||||||||||||||||||||
2010 | 18.42 | .16 | 4.05 | 4.21 | (.26 | ) | — | (.26 | ) | 22.37 | ||||||||||||||||||||||
2009 | 16.24 | .28 | 2.01 | 2.29 | (.11 | ) | — | (.11 | ) | 18.42 | ||||||||||||||||||||||
2008 | 27.98 | .27 | (9.99 | ) | (9.72 | ) | (.19 | ) | (1.83 | ) | (2.02 | ) | 16.24 | |||||||||||||||||||
2007 | 26.77 | .22 | 2.80 | 3.02 | (.23 | ) | (1.58 | ) | (1.81 | ) | 27.98 | |||||||||||||||||||||
| 48 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| (.64 | )% | $ | 52,334 | 1.33 | % | .27 | % | 1.31 | % | .30 | % | 123 | % | |||||||||||||
| 22.65 | 76,667 | 1.25 | .58 | 1.25 | .58 | 123 | ||||||||||||||||||||
| 13.95 | 130,222 | 1.25 | 1.52 | 1.25 | 1.52 | 106 | ||||||||||||||||||||
| (37.32 | ) | 124,275 | 1.23 | .90 | 1.23 | .90 | 93 | |||||||||||||||||||
| 11.47 | 254,342 | 1.22 | .58 | 1.22 | .58 | 95 | ||||||||||||||||||||
| (1.35 | ) | 2,073 | 2.08 | (.48 | ) | 2.06 | (.45 | ) | 123 | |||||||||||||||||
| 21.77 | 2,815 | 2.00 | (.20 | ) | 2.00 | (.20 | ) | 123 | ||||||||||||||||||
| 13.13 | 3,481 | 1.98 | .85 | 1.98 | .85 | 106 | ||||||||||||||||||||
| (37.82 | ) | 4,133 | 1.98 | .14 | 1.98 | .14 | 93 | |||||||||||||||||||
| 10.67 | 8,360 | 1.97 | (.13 | ) | 1.97 | (.13 | ) | 95 | ||||||||||||||||||
| (1.35 | ) | 8,957 | 2.08 | (.48 | ) | 2.06 | (.45 | ) | 123 | |||||||||||||||||
| 21.74 | 11,564 | 2.00 | (.21 | ) | 2.00 | (.21 | ) | 123 | ||||||||||||||||||
| 13.10 | 12,040 | 2.00 | .80 | 2.00 | .80 | 106 | ||||||||||||||||||||
| (37.80 | ) | 13,154 | 1.98 | .14 | 1.98 | .14 | 93 | |||||||||||||||||||
| 10.66 | 26,141 | 1.97 | (.18 | ) | 1.97 | (.18 | ) | 95 | ||||||||||||||||||
| (.87 | ) | 15,310 | 1.58 | .03 | 1.56 | .06 | 123 | |||||||||||||||||||
| 22.40 | 20,195 | 1.50 | .30 | 1.50 | .30 | 123 | ||||||||||||||||||||
| 13.63 | 25,664 | 1.50 | 1.21 | 1.50 | 1.21 | 106 | ||||||||||||||||||||
| (37.47 | ) | 23,423 | 1.49 | .64 | 1.49 | .64 | 93 | |||||||||||||||||||
| 11.18 | 29,752 | 1.47 | .29 | 1.47 | .29 | 95 | ||||||||||||||||||||
| (.42 | ) | 151,409 | 1.07 | .65 | 1.06 | .65 | 123 | |||||||||||||||||||
| 22.98 | 470,266 | 1.00 | .78 | 1.00 | .78 | 123 | ||||||||||||||||||||
| 14.24 | 440,968 | 1.00 | 1.76 | 1.00 | 1.76 | 106 | ||||||||||||||||||||
| (37.17 | ) | 415,486 | .99 | 1.14 | .99 | 1.14 | 93 | |||||||||||||||||||
| 11.79 | 772,178 | .97 | .86 | .97 | .86 | 95 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 49 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
SMALL CAP VALUE | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (8/94) |
| |||||||||||||||||||||||||||||||
2011 | $ | 10.26 | $ | (.05 | ) | $ | 1.09 | $ | 1.04 | $ | — | $ | — | $ | — | $ | 11.30 | |||||||||||||||
2010 | 8.22 | (.01 | ) | 2.07 | 2.06 | (.02 | ) | — | (.02 | ) | 10.26 | |||||||||||||||||||||
2009 | 8.12 | .03 | .15 | .18 | (.08 | ) | — | (.08 | ) | 8.22 | ||||||||||||||||||||||
2008 | 13.52 | .08 | (3.97 | ) | (3.89 | ) | (.14 | ) | (1.37 | ) | (1.51 | ) | 8.12 | |||||||||||||||||||
2007 | 15.38 | .12 | .48 | .60 | (.02 | ) | (2.44 | ) | (2.46 | ) | 13.52 | |||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||
2011 | 9.08 | (.12 | ) | .97 | .85 | — | — | — | 9.93 | |||||||||||||||||||||||
2010 | 7.31 | (.07 | ) | 1.84 | 1.77 | — | — | — | 9.08 | |||||||||||||||||||||||
2009 | 7.22 | (.02 | ) | .13 | .11 | (.02 | ) | — | (.02 | ) | 7.31 | |||||||||||||||||||||
2008 | 12.19 | — | * | (3.54 | ) | (3.54 | ) | (.06 | ) | (1.37 | ) | (1.43 | ) | 7.22 | ||||||||||||||||||
2007 | 14.17 | .02 | .44 | .46 | — | (2.44 | ) | (2.44 | ) | 12.19 | ||||||||||||||||||||||
Class R3 (9/01)(e) |
| |||||||||||||||||||||||||||||||
2011 | 10.11 | (.07 | ) | 1.07 | 1.00 | — | — | — | 11.11 | |||||||||||||||||||||||
2010 | 8.10 | (.03 | ) | 2.04 | 2.01 | — | — | — | 10.11 | |||||||||||||||||||||||
2009 | 8.00 | .01 | .15 | .16 | (.06 | ) | — | (.06 | ) | 8.10 | ||||||||||||||||||||||
2008 | 13.35 | .05 | (3.91 | ) | (3.86 | ) | (.12 | ) | (1.37 | ) | (1.49 | ) | 8.00 | |||||||||||||||||||
2007 | 15.24 | .10 | .47 | .57 | (.02 | ) | (2.44 | ) | (2.46 | ) | 13.35 | |||||||||||||||||||||
Class I (8/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 10.55 | (.02 | ) | 1.12 | 1.10 | — | — | — | 11.65 | |||||||||||||||||||||||
2010 | 8.45 | .01 | 2.13 | 2.14 | (.04 | ) | — | (.04 | ) | 10.55 | ||||||||||||||||||||||
2009 | 8.36 | .05 | .15 | .20 | (.11 | ) | — | (.11 | ) | 8.45 | ||||||||||||||||||||||
2008 | 13.87 | .11 | (4.08 | ) | (3.97 | ) | (.17 | ) | (1.37 | ) | (1.54 | ) | 8.36 | |||||||||||||||||||
2007 | 15.71 | .16 | .49 | .65 | (.05 | ) | (2.44 | ) | (2.49 | ) | 13.87 | |||||||||||||||||||||
| 50 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 10.14 | % | $ | 31,814 | 1.48 | % | (.41 | )% | 1.46 | % | (.40 | )% | 41 | % | |||||||||||||
| 25.15 | 32,332 | 1.34 | (.11 | ) | 1.34 | (.11 | ) | 58 | ||||||||||||||||||
| 2.40 | 29,026 | 1.37 | .46 | 1.37 | .46 | 73 | ||||||||||||||||||||
| (31.75 | ) | 28,344 | 1.31 | .75 | 1.31 | .75 | 49 | |||||||||||||||||||
| 4.18 | 53,498 | 1.26 | .90 | 1.26 | .90 | 63 | ||||||||||||||||||||
| 9.36 | 1,498 | 2.23 | (1.18 | ) | 2.21 | (1.18 | ) | 41 | ||||||||||||||||||
| 24.21 | 1,843 | 2.09 | (.86 | ) | 2.09 | (.86 | ) | 58 | ||||||||||||||||||
| 1.56 | 2,080 | 2.12 | (.27 | ) | 2.12 | (.27 | ) | 73 | ||||||||||||||||||
| (32.23 | ) | 2,373 | 2.06 | — | ** | 2.06 | — | ** | 49 | |||||||||||||||||
| 3.42 | 4,006 | 2.01 | .14 | 2.01 | .14 | 63 | ||||||||||||||||||||
| 9.89 | 2,246 | 1.73 | (.66 | ) | 1.71 | (.65 | ) | 41 | ||||||||||||||||||
| 24.85 | 2,111 | 1.59 | (.35 | ) | 1.59 | (.35 | ) | 58 | ||||||||||||||||||
| 2.14 | 2,327 | 1.62 | .19 | 1.62 | .19 | 73 | ||||||||||||||||||||
| (31.90 | ) | 2,159 | 1.56 | .50 | 1.56 | .50 | 49 | |||||||||||||||||||
| 3.96 | 3,263 | 1.51 | .72 | 1.51 | .72 | 63 | ||||||||||||||||||||
| 10.43 | 48,596 | 1.21 | (.16 | ) | 1.21 | (.16 | ) | 41 | ||||||||||||||||||
| 25.43 | 180,875 | 1.09 | .14 | 1.09 | .14 | 58 | ||||||||||||||||||||
| 2.59 | 149,515 | 1.12 | .72 | 1.12 | .72 | 73 | ||||||||||||||||||||
| (31.56 | ) | 158,112 | 1.06 | 1.00 | 1.06 | 1.00 | 49 | |||||||||||||||||||
| 4.45 | 302,683 | 1.01 | 1.15 | 1.01 | 1.15 | 63 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| * | Rounds to less than $.01 per share. |
| ** | Rounds to less than .01%. |
See accompanying notes to financial statements.
| Nuveen Investments | 51 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000))
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”) known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers have become employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the funds from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors Inc. were renamed Class R3 and Class I Shares, respectively.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Equity Income Fund (“Equity Income”) formerly known as First American Equity Income Fund, Nuveen Large Cap Value Fund (“Large Cap Value”) formerly known as First American Large Cap Value Fund, Nuveen Mid Cap Value Fund (“Mid Cap Value”) formerly known as First American Mid Cap Value Fund and Nuveen Small Cap Value Fund (“Small Cap Value”) formerly known as First American Small Cap Value Fund (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
Equity Income’s investment objective is long-term growth of capital and income. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in equity securities of companies the Sub-Adviser believes are characterized by the ability to pay above average dividends, ability to finance expected growth and strong management. The Fund also invests in convertible debt securities in pursuit of both long-term growth of capital and income. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. The Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Large Cap Value’s investment objective is capital appreciation, with current income as the Fund’s secondary objective. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in common stocks of large-capitalization companies. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. The Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Mid Cap Value’s investment objective is capital appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in common stocks of mid-capitalization companies within the same market capitalization range as the Russell MidCap ® Index. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. The Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Small Cap Value’s investment objective is capital appreciation. Under normal market conditions, the Fund invests primarily (at least 80% of its net assets, plus the amount of any borrowings for investment purposes) in common stocks of small-capitalization companies. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of foreign issuers. The Fund
| 52 | Nuveen Investments |
may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of foreign issuers and in dollar-denominated equity securities of foreign issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Each Fund may also invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in only limited volume in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange, which generally represents a transfer from a Level 1 to a Level 2 security. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
The ETFs in which the Funds invests are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
| Nuveen Investments | 53 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for each Fund with the exception of Equity Income, which declares and distributes dividends from net investment income to shareholders quarterly. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Small Cap Value receives substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities must use estimates in reporting the character of their income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended October 31, 2011.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include distribution fees and shareholder service fees, are recorded to the specific class.
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
| 54 | Nuveen Investments |
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned. If the value of the securities on loan increases [such that the level of collateralization falls below 102%], additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM also received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| Equity Income | Large Cap Value | Mid Cap Value | Small Cap Value | |||||||||||||
Securities lending fees paid | $ | 40 | $ | 13 | $ | 19 | $ | 10 | ||||||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs, (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| Equity Income | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 1,061,475 | $ | — | $ | — | $ | 1,061,475 | ||||||||
Money Market Funds* | 321,455 | — | — | 321,455 | ||||||||||||
Short-Term Investments | 19,973 | — | — | 19,973 | ||||||||||||
Total | $ | 1,402,903 | $ | — | $ | — | $ | 1,402,903 | ||||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
| Nuveen Investments | 55 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
| Large Cap Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 153,035 | $ | — | $ | — | $ | 153,035 | ||||||||
Money Market Funds* | 42,625 | — | — | 42,625 | ||||||||||||
Short-Term Investments | 1,306 | — | — | 1,306 | ||||||||||||
Total | $ | 196,966 | $ | — | $ | — | $ | 196,966 | ||||||||
| Mid Cap Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 228,458 | $ | — | $ | — | $ | 228,458 | ||||||||
Money Market Funds* | 76,050 | — | — | 76,050 | ||||||||||||
Short-Term Investments | 2,807 | — | — | 2,807 | ||||||||||||
Total | $ | 307,315 | $ | — | $ | — | $ | 307,315 | ||||||||
| Small Cap Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 81,033 | $ | — | $ | — | $ | 81,033 | ||||||||
Investment Companies | 892 | — | — | 892 | ||||||||||||
Money Market Funds* | 33,681 | — | — | 33,681 | ||||||||||||
Short-Term Investments | 2,222 | — | — | 2,222 | ||||||||||||
Total | $ | 117,828 | $ | — | $ | — | $ | 117,828 | ||||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
During the fiscal year ended October 31, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended October 31, 2011.
4. Fund Shares
Transactions in Fund shares were as follows:
| Equity Income | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 6,608 | $ | 87,418 | 2,350 | $ | 27,882 | ||||||||||
Class B | 3 | 47 | 7 | 84 | ||||||||||||
Class C | 709 | 9,350 | 587 | 6,915 | ||||||||||||
Class R3(1) | 1,002 | 12,619 | 93 | 1,089 | ||||||||||||
Class I(1) | 25,219 | 331,973 | 12,184 | 144,124 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 232 | 3,044 | 226 | 2,661 | ||||||||||||
Class B | 2 | 29 | 10 | 107 | ||||||||||||
Class C | 10 | 131 | 11 | 128 | ||||||||||||
Class R3(1) | 6 | 75 | 1 | 11 | ||||||||||||
Class I(1) | 467 | 6,206 | 343 | 4,079 | ||||||||||||
| 34,258 | 450,892 | 15,812 | 187,080 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,368 | ) | (44,368 | ) | (1,792 | ) | (20,975 | ) | ||||||||
Class B | (184 | ) | (2,429 | ) | (287 | ) | (3,330 | ) | ||||||||
Class C | (177 | ) | (2,328 | ) | (155 | ) | (1,799 | ) | ||||||||
Class R3(1) | (177 | ) | (2,358 | ) | (8 | ) | (99 | ) | ||||||||
Class I(1) | (14,801 | ) | (197,668 | ) | (10,482 | ) | (124,062 | ) | ||||||||
| (18,707 | ) | (249,151 | ) | (12,724 | ) | (150,265 | ) | |||||||||
Net increase (decrease) | 15,551 | $ | 201,741 | 3,088 | $ | 36,815 | ||||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| 56 | Nuveen Investments |
| Large Cap Value | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 130 | $ | 1,984 | 140 | $ | 1,946 | ||||||||||
Class B | — | 6 | — | — | ||||||||||||
Class C | 6 | 96 | 6 | 74 | ||||||||||||
Class R3(1) | 19 | 283 | 36 | 486 | ||||||||||||
Class I(1) | 408 | 6,071 | 1,074 | 14,969 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 42 | 643 | 48 | 671 | ||||||||||||
Class B | — | 6 | — | 10 | ||||||||||||
Class C | — | 5 | — | 6 | ||||||||||||
Class R3(1) | 1 | 9 | — | 4 | ||||||||||||
Class I(1) | 74 | 1,126 | 237 | 3,338 | ||||||||||||
| 680 | 10,229 | 1,541 | 21,504 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (607 | ) | (9,237 | ) | (731 | ) | (10,076 | ) | ||||||||
Class B | (33 | ) | (483 | ) | (83 | ) | (1,124 | ) | ||||||||
Class C | (25 | ) | (371 | ) | (68 | ) | (910 | ) | ||||||||
Class R3(1) | (21 | ) | (322 | ) | (6 | ) | (81 | ) | ||||||||
Class I(1) | (4,021 | ) | (64,483 | ) | (6,787 | ) | (94,336 | ) | ||||||||
Class I(1) – In-kind | (9,126 | ) | (132,685 | ) | — | — | ||||||||||
| (13,833 | ) | (207,581 | ) | (7,675 | ) | (106,527 | ) | |||||||||
Net increase (decrease) | (13,153 | ) | $ | (197,352 | ) | (6,134 | ) | $ | (85,023 | ) | ||||||
| Mid Cap Value | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 541 | $ | 12,713 | 826 | $ | 16,925 | ||||||||||
Class B | — | 7 | — | 1 | ||||||||||||
Class C | 21 | 482 | 34 | 685 | ||||||||||||
Class R3(1) | 239 | 5,505 | 508 | 10,515 | ||||||||||||
Class I(1) | 864 | 20,279 | 2,458 | 50,896 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 32 | 764 | 51 | 1,027 | ||||||||||||
Class B | — | 9 | 1 | 14 | ||||||||||||
Class C | 2 | 42 | 2 | 41 | ||||||||||||
Class R3(1) | 6 | 141 | 9 | 180 | ||||||||||||
Class I(1) | 47 | 1,125 | 205 | 4,150 | ||||||||||||
| 1,752 | 41,067 | 4,094 | 84,434 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,629 | ) | (37,492 | ) | (4,548 | ) | (89,871 | ) | ||||||||
Class B | (34 | ) | (775 | ) | (68 | ) | (1,328 | ) | ||||||||
Class C | (137 | ) | (3,111 | ) | (179 | ) | (3,517 | ) | ||||||||
Class R3(1) | (455 | ) | (10,396 | ) | (1,015 | ) | (20,572 | ) | ||||||||
Class I(1) | (3,914 | ) | (94,066 | ) | (5,579 | ) | (115,441 | ) | ||||||||
Class I(1) – In-kind | (11,138 | ) | (261,914 | ) | — | — | ||||||||||
| (17,307 | ) | (407,754 | ) | (11,389 | ) | (230,729 | ) | |||||||||
Net increase (decrease) | (15,555 | ) | $ | (366,687 | ) | (7,295 | ) | $ | (146,295 | ) | ||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| Nuveen Investments | 57 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
| Small Cap Value | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 411 | $ | 4,808 | 171 | $ | 1,626 | ||||||||||
Class C | 25 | 264 | 28 | 242 | ||||||||||||
Class R3 (1) | 60 | 690 | 149 | 1,416 | ||||||||||||
Class I (1) | 1,125 | 13,450 | 2,082 | 20,325 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 9 | 81 | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3 (1) | — | — | — | 1 | ||||||||||||
Class I (1) | — | — | 68 | 635 | ||||||||||||
| 1,621 | 19,212 | 2,507 | 24,326 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (748 | ) | (8,800 | ) | (560 | ) | (5,270 | ) | ||||||||
Class C | (77 | ) | (778 | ) | (110 | ) | (894 | ) | ||||||||
Class R3 (1) | (67 | ) | (777 | ) | (227 | ) | (2,197 | ) | ||||||||
Class I (1) | (2,666 | ) | (33,926 | ) | (2,702 | ) | (25,790 | ) | ||||||||
Class I(1) – In-kind | (11,425 | ) | (127,930 | ) | — | — | ||||||||||
| (14,983 | ) | (172,211 | ) | (3,599 | ) | (34,151 | ) | |||||||||
Net increase (decrease) | (13,362 | ) | $ | (152,999) | (1,092 | ) | $ | (9,825 | ) | |||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (reflected above as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
Equity Income | 112 | 197 | ||||||
Large Cap Value | 23 | 60 | ||||||
Mid Cap Value | 18 | 39 | ||||||
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending and short-term investments, where applicable) during the fiscal year ended October 31, 2011, were as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Purchases | $ | 536,089 | $ | 236,343 | $ | 413,989 | $ | 47,538 | ||||||||
Sales and maturities | 328,909 | 434,892 | 780,913 | 198,292 | ||||||||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Cost of investments | $ | 1,175,196 | $ | 198,260 | $ | 305,022 | $ | 111,127 | ||||||||
Gross unrealized: | ||||||||||||||||
Appreciation | $ | 235,448 | $ | 11,015 | $ | 15,735 | $ | 12,362 | ||||||||
Depreciation | (7,741 | ) | (12,309 | ) | (13,442 | ) | (5,661 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments | $ | 227,707 | $ | (1,294 | ) | $ | 2,293 | $ | 6,701 | |||||||
| 58 | Nuveen Investments |
Permanent differences, primarily due to the redemption-in-kind, net operating losses, tax equalization, REIT adjustments, and investments in partnerships, resulted in reclassifications among the Funds’ components of net assets at October 31, 2011, the Funds’ tax year end, as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Capital paid-in | $ | 346 | $ | 15,382 | $ | 50,922 | $ | 27,174 | ||||||||
Undistributed (Over-distribution) of net investment income | (1,263 | ) | (44 | ) | (154 | ) | 291 | |||||||||
Accumulated net realized gain (loss) | 917 | (15,338 | ) | (50,768 | ) | (27,465 | ) | |||||||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ tax year end, were as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Undistributed net ordinary income* | $ | 2,009 | $ | 881 | $ | 1,514 | $ | — | ||||||||
Undistributed net long-term capital gains | — | — | — | — | ||||||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2011 and October 31, 2010, was designated for purposes of the dividends paid deduction as follows:
| 2011 | Equity Income | Large Cap | Mid Cap | Small Cap | ||||||||||||
Distributions from net ordinary income* | $ | 23,121 | $ | 3,092 | $ | 3,984 | $ | — | ||||||||
Distributions from net long-term capital gains | — | — | — | — | ||||||||||||
| 2010 | Equity Income | Large Cap | Mid Cap | Small Cap | ||||||||||||
Distributions from net ordinary income* | $ | 20,892 | $ | 5,827 | $ | 7,361 | $ | 836 | ||||||||
Distributions from net long-term capital gains | — | — | — | — | ||||||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any. |
At October 31, 2011, the Funds’ tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Expiration: | ||||||||||||||||
October 31, 2016 | $ | — | $ | 9,778 | $ | — | $ | 3,445 | ||||||||
October 31, 2017 | 1,441 | 80,887 | 64,991 | 37,113 | ||||||||||||
Total | $ | 1,441 | $ | 90,665 | $ | 64,991 | $ | 40,558 | ||||||||
During the Funds’ tax year ended October 31, 2011, the Funds utilized their capital loss carryforwards as follows:
| Equity Income | Large Cap Value | Mid Cap Value | Small Cap Value | |||||||||||||
Utilized capital loss carryforwards | $ | 6,857 | $ | 19,153 | $ | 42,620 | $ | 10,362 | ||||||||
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors a monthly advisory fee, on an annual basis, equal to each Fund’s average daily net assets as follows:
| Fund | Advisory Fee Rate | |||
Equity Income* | .65 | % | ||
Large Cap Value* | .65 | |||
Mid Cap Value | .70 | |||
Small Cap Value | .70 | |||
| * | The advisory fees for Equity Income and Large Cap Value were equal to an annual rate of .65% of the average daily net assets up to $3 billion, .625% of the average daily net assets on the next $2 billion and .60% of the average daily net assets in excess of $5 billion. |
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Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by Nuveen Fund Advisors.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Equity Fund-Level | Large Fund-Level | Mid Cap Fund-Level | Small Fund-Level | ||||||||||||
For the first $125 million | .6000 | % | .5500 | % | .7000 | % | .7000 | % | ||||||||
For the next $125 million | .5875 | .5375 | .6875 | .6875 | ||||||||||||
For the next $250 million | .5750 | .5250 | .6750 | .6750 | ||||||||||||
For the next $500 million | .5625 | .5125 | .6625 | .6625 | ||||||||||||
For the next $1 billion | .5500 | .5000 | .6500 | .6500 | ||||||||||||
For net assets over $2 billion | .5250 | .4750 | .6250 | .6250 | ||||||||||||
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule for each Fund as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rate for each Fund was as follows: |
| Fund | Complex-Level Fee Rate | |||
Equity Income | .1945 | % | ||
Large Cap Value | .2000 | |||
Mid Cap Value | .2000 | |||
Small Cap Value | .2000 | |||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Fund’s overall strategy and asset allocation decisions. Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were a series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed each investing Fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from
| 60 | Nuveen Investments |
the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations, and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Effective January 1, 2011, Nuveen Fund Advisors agreed to waive fees and reimburse other Fund expenses of Mid Cap Value and Small Cap Value so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
| Mid Cap Value | Small Cap | |||||||
Class A Shares | 1.3400 | % | 1.500 | % | ||||
Class B Shares | 2.0900 | N/A | ||||||
Class C Shares | 2.0900 | 2.2500 | ||||||
Class R3 Shares(1) | 1.5900 | 1.7500 | ||||||
Class I Shares(1) | 1.0900 | 1.2500 | ||||||
Expiration Date | February 29, 2012 | February 29, 2012 | ||||||
| N/A | Fund does not offer Class B Shares. |
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Funds advised by Nuveen Fund Advisors.
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets, and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
Custodian Fees
U.S. Bank serves as the custodian for each Fund pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Interest earned on un-invested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing
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Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds have entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B Shares and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Sales charges collected (Unaudited) | $ | 298 | $ | 19 | $ | 29 | $ | 15 | ||||||||
Paid to financial intermediaries (Unaudited) | 268 | 17 | 26 | 13 | ||||||||||||
Quasar and/or Nuveen Securities, LLC also received 12b-1 service fees in Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
Commission advances (Unaudited) | $ | 122 | $ | — | $ | 4 | $ | 2 | ||||||||
All 12b-1 service and distribution fees collected on Class B and C Shares during the first year following a purchase were retained by Quasar and/or the Nuveen Securities, LLC to compensate for commissions advanced to financial intermediaries. During the fiscal year ended October 31, 2011, Quasar and/or the Nuveen Securities, LLC retained such 12b-1 fees as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
12b-1 fees retained (Unaudited) | $ | 112 | $ | 9 | $ | 24 | $ | 3 | ||||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $4 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of the Funds were sold with an up-front sales charge of 5.50%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Effective January 18, 2011, Class A Shares of the Funds are sold with an up-front sales charge of 5.75%. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class B Shares continue to automatically convert to Class A Shares eight years after purchase. Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Quasar and/or Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| Equity Income | Large Cap | Mid Cap | Small Cap | |||||||||||||
CDSC retained (Unaudited) | $ | 8 | $ | — | $ | 5 | $ | 1 | ||||||||
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Affiliated 401(k) Plan and Redemptions In-Kind
An affiliated 401(k) plan of FAF Advisors, (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 1, 2010, in the amounts as follows:
Large Cap Value | $ | 132,685 | ||
Mid Cap Value | 91,633 | |||
Small Cap Value | 79,419 |
An affiliated pension plan (the “plan”) also previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, in the amounts as follows:
Mid Cap Value | $ | 170,281 | ||
Small Cap Value | 48,511 |
In these transactions, the Funds paid redemption proceeds by distributing a proportionate amount of securities in their respective portfolios. Remaining shareholders in the Funds did not recognize any capital gains from the transactions.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2 and the reasons for the transfers and, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
| Nuveen Investments | 63 |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
| 64 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
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Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
| 66 | Nuveen Investments |
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
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Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). At a meeting of the Funds’ stockholders held on December 17, 2010, stockholders of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement and the NAM Sub-Advisory Agreement became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for the Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
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Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
| Nuveen Investments | 69 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
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Notes
| Nuveen Investments | 71 |
Notes
| 72 | Nuveen Investments |
Notes
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Lipper Equity Income Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Equity Income Funds Classification. The Lipper Equity Income Funds Classification Average contained 286, 203 and 106 funds for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Large-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Value Funds Classification. The Lipper Large-Cap Value Funds Classification Average contained 515, 405 and 240 for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Mid-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Value Funds Classification. The Lipper Mid-Cap Value Funds Classification Average contained 248, 172 and 87 funds for the 1- year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Small-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Classification. The Lipper Small-Cap Value Funds Classification Average contained 290, 222 and 112 funds for the 1- year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
Russell 1000 Value Index: An index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Russell 2000 Value Index: An index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Russell Midcap Value Index: An index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
S&P 500 Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
S&P 500 Dividend Only Stocks Index: An unmanaged index that includes only the S&P 500 Index stocks that pay dividends. The S&P 500 Index is generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
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Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodian
U.S. Bank National Association
St. Paul, MN
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Distribution Information: The following Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and their percentages as qualified dividend income (“QDI”) for individuals under Section 1 (h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| Fund | % of DRD | % of QDI | ||||||
Nuveen Equity Income | 100% | 100% | ||||||
Nuveen Large Cap Value | 100% | 100% | ||||||
Nuveen Mid Cap Value | 100% | 100% | ||||||
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MAN-FSTK-1011P
Mutual Funds
Nuveen Index Funds
For investors seeking long-term capital appreciation potential.
Annual Report
October 31, 2011
| Share Class / Ticker Symbol | ||||||||||
| Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||
Nuveen Equity Index Fund | FAEIX | FAEQX | FCEIX | FADSX | FEIIX | |||||
Nuveen Mid Cap Index Fund | FDXAX | — | FDXCX | FMCYX | FIMEX | |||||
Nuveen Small Cap Index Fund | FMDAX | — | FPXCX | ARSCX | ASETX | |||||
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| Must be preceded by or accompanied by a prospectus. | NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
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Letter to Shareholders
Dear Shareholders,
These are perplexing times for investors. The global economy continues to struggle. The solutions being implemented in the eurozone to deal with the debt crises of many of its member countries are not yet seen as sufficient by the financial markets. The political paralysis in the U.S. has prevented the compromises necessary to deal with the fiscal imbalance and government spending priorities. The efforts by individual consumers, governments and financial institutions to reduce their debts are increasing savings but reducing demand for the goods and services that drive employment. These developments are undermining the rebuilding of confidence by consumers, corporations and investors that is so essential to a resumption of economic growth.
Although it is painfully slow, progress is being made. In Europe, the turnover of a number of national governments reflects the realization by politicians and voters alike that leaders who practiced business as usual had to be replaced by leaders willing to face problems and accept the hard choices needed to resolve them. The recent coordinated efforts by central banks in the U.S. and Europe to provide liquidity to the largest European banks indicates that these monetary authorities are committed to facilitating a recovery in the European banking sector.
In the U.S., the failure of the congressionally appointed Debt Reduction Committee was a blow to those who hoped for a bipartisan effort to finally begin addressing the looming fiscal crisis. Nevertheless, Congress and the administration cannot ignore the issue for long. The Bush era tax cuts are scheduled to expire on December 31, 2012, and six months later the $1.2 trillion of mandatory across-the-board spending cuts under the Budget Control Act of 2011 begin to go into effect. Any legislative modification would require bipartisan support and the prospects for a bipartisan solution are unclear. The impact of these two developments would be a mixed blessing: a meaningful reduction in the annual budget deficit at the cost of slowing the economic recovery.
It is in these particularly volatile markets that professional investment management is most important. Skillful investment teams who have experienced challenging markets and remain committed to their investment disciplines are critical to the success of an investor’s long-term objectives. In fact, many long-term investment track records are built during challenging markets when managers are able to protect investors against these economic crosscurrents. Experienced investment teams know that volatile markets put a premium on companies and investment ideas that will weather the short-term volatility and that compelling values and opportunities are opened up when markets overreact to negative developments. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 21, 2011
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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.
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Walt French and David Friar are the portfolio managers for the Funds. Walt, who has 37 years of financial industry experience, and David, with 13 years of experience, have managed the Nuveen Equity Index Fund (formerly known as First American Equity Index Fund) since 1999 and 2000, respectively. They have both managed the Nuveen Mid Cap Index Fund (formerly known as First American Mid Cap Index Fund) and the Nuveen Small Cap Index Fund (formerly known as First American Small Cap Index Fund) since 2001.
On the following pages, the portfolio management team for the Funds examines economic and equity market conditions and the Funds’ performance for the twelve-month period ended October 31, 2011.
What factors affected the U.S. economic and equity market environments during the twelve-month reporting period ended October 31, 2011?
During this period, the U.S. economy’s recovery from recession remained slow. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by continuing to hold the benchmark fed funds rate at the record low level of zero to 0.25% that it had established in December 2008. At its November 2011 meeting (shortly after the end of this reporting period), the central bank reaffirmed its opinion that economic conditions would likely warrant keeping this rate at “exceptionally low levels” at least through mid-2013. The Fed also said that it would continue its program to extend the average maturity of its U.S. Treasury holdings by purchasing $400 billion of these securities with maturities of six to thirty years and selling an equal amount of U.S. Treasury securities with maturities of three years or less. The goals of this program, which the Fed expects to complete by the end of June 2012, are to lower longer-term interest rates, support a stronger economic recovery, and help ensure that inflation remains at levels consistent with the Fed’s mandates of maximum employment and price stability.
In the third quarter of 2011, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.0%, the best growth number since the fourth quarter of 2010 and the ninth consecutive quarter of positive growth. The Consumer Price Index (CPI) rose 3.5% year-over-year as of October 2011, while the core CPI (which excludes food and energy) increased 2.1%, edging just above the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Unemployment numbers remained high, as October 2011 marked the seventh straight month with a national jobless number of 9.0% or higher. However, after the reporting period came to a close, the U.S. unemployment rate fell to 8.6% in November 2011. While the dip was a step in
| Nuveen Investments | 5 |
the right direction, it was partly due to a number of individuals dropping out of the hunt for work. The housing market also continued to be a major weak spot. For the twelve months ended September 2011 (the most recent data available at the time this report was prepared), the average home price in the Standard & Poor’s/Case-Shiller Index lost 3.6%, with 18 of the 20 major metropolitan areas reporting losses. In addition, the U.S. economic picture continued to be clouded by concerns about the European debt crisis and efforts to reduce the federal deficit.
The ongoing economic uncertainty and the continual resurfacing of the European debt issue caused a high degree of volatility in the equity markets. The first half of the period saw dramatic gains for stocks and other risk assets fueled by signs of an improving economy. However, as the summer progressed, markets fell back sharply. For much of August and September, stocks traded lower before staging a comeback in the final month of the period. Over the course of the full reporting period, larger U.S. companies generally had stronger returns than their smaller sized and overseas counterparts.
Nuveen Equity Index Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Standard & Poor’s (S&P) 500 Index and the Lipper S&P 500 Index Objective Funds Classification Average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the S&P 500 Index as closely as possible, with consideration given to turnover costs and fees. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the S&P 500 Index, depending on the size of the Fund, and we followed this approach during the period.
The Fund performed very similarly to the index during the fiscal year. The three best-performing sectors in the index were energy, utilities and consumer discretionary, which advanced 19.2%, 14.7% and 12.7%, respectively. The three lowest-performing sectors were financials, which fell -5.9%, followed by materials and industrials, which rose 2.8% and 6.0%, respectively.
During the period, the Fund was also invested in S&P 500 Index futures to convert cash into the equivalent of an S&P 500 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index.
| 6 | Nuveen Investments |
Nuveen Mid Cap Index Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Standard & Poor’s (S&P) MidCap 400 Index but outperformed the Lipper Mid-Cap Core Funds Classification Average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the S&P MidCap 400 Index as closely as possible, with consideration given to turnover costs and fees. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the S&P MidCap 400 Index, depending on the size of the Fund, and we followed this approach during the period.
The Fund performed very similarly to the index during the fiscal year. The three best-performing sectors in the index were consumer staples, utilities and consumer discretionary, which advanced 31.6%, 16.2% and 15.0%, respectively. The three lowest-performing sectors were telecommunications and financials, which fell -15.9% and -0.1%, respectively, followed by information technology, which gained 5.7%.
During the period, the Fund was also invested in S&P MidCap 400 Index futures to convert cash into the equivalent of an S&P MidCap 400 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index.
Nuveen Small Cap Index Fund
How did the Fund perform during the twelve-month period ended October 31, 2011?
The tables in the Fund Performance and Expense Ratios section of this report provide
Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2011. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell 2000 Index and the Lipper Small-Cap Core Funds Classification Average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the Russell 2000 Index as closely as possible, with consideration given to turnover costs and fees. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the Russell 2000 Index, depending on the size of the Fund, and we followed this approach during the period.
The Fund performed very similarly to the index during the fiscal year. The three best-performing sectors in the index were energy, consumer staples and utilities, which
| Nuveen Investments | 7 |
advanced 16.7%, 16.7% and 15.9%, respectively. The three lowest-performing sectors were materials, financials and telecommunications, which gained 1.4%, 2.3%, and 3.3%, respectively.
During the period, the Fund was also invested in Russell 2000 Index futures to convert cash into the equivalent of a Russell 2000 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments are subject to market risk. Investments in small- and mid-cap companies are subject to greater volatility.
| 8 | Nuveen Investments |
Fund Performance and Expense Ratios (Unaudited)
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
Effective January 18, 2011, Class R Shares and Class Y Shares, previously offered by FAF Advisors, Inc., were renamed Class R3 Shares and Class I Shares, respectively.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
| Nuveen Investments | 9 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Equity Index Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 7.41% | -0.22% | 3.17% | |||||||||
Standard & Poor’s (S&P) 500® Index* | 8.09% | 0.25% | 3.69% | |||||||||
Lipper S&P 500 Index Objective Funds Classification Average* | 7.46% | -0.28% | 3.15% | |||||||||
Class B Shares w/o CDSC** | 6.60% | -0.97% | 2.40% | |||||||||
Class B Shares w/CDSC** | 1.62% | -1.15% | 2.40% | |||||||||
Class C Shares | 6.61% | -0.97% | 2.40% | |||||||||
Class R3 Shares | 7.15% | -0.47% | 2.98% | |||||||||
Class I Shares | 7.68% | 0.02% | 3.43% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 0.48% | -1.65% | 2.30% | |||||||||
Class B Shares w/o CDSC** | -0.23% | -2.38% | 1.54% | |||||||||
Class B Shares w/CDSC** | -4.89% | -2.55% | 1.54% | |||||||||
Class C Shares | -0.22% | -2.38% | 1.53% | |||||||||
Class R3 Shares | 0.28% | -1.89% | 2.11% | |||||||||
Class I Shares | 0.73% | -1.41% | 2.56% | |||||||||
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 0.67% | 0.63% | ||||||
Class B Shares | 1.42% | 1.38% | ||||||
Class C Shares | 1.42% | 1.38% | ||||||
Class R3 Shares | 0.92% | 0.88% | ||||||
Class I Shares | 0.42% | 0.38% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses; after waivers and excluding acquired fund fees and expenses, do not exceed 0.62%, 1.37%, 1.37%, 0.87% and 0.37%, respectively, for Class A, Class B, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| ** | Class B Shares are available only upon the exchange of Class B Shares from another Nuveen mutual fund for which U.S. Bancorp Fund Services, LLC serves as transfer agent or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. |
| 10 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 11 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Mid Cap Index Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 8.07% | 3.55% | 7.79% | |||||||||
Standard & Poor’s (S&P) MidCap 400® Index* | 8.55% | 4.01% | 8.43% | |||||||||
Lipper Mid-Cap Core Funds Classification Average* | 5.87% | 1.96% | 6.61% | |||||||||
Class C Shares | 7.20% | 2.76% | 6.98% | |||||||||
Class R3 Shares | 7.83% | 3.29% | 7.59% | |||||||||
Class I Shares | 8.23% | 3.78% | 8.06% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | -1.74% | 1.74% | 6.86% | |||||||||
Class C Shares | -2.48% | 0.98% | 6.06% | |||||||||
Class R3 Shares | -1.90% | 1.48% | 6.66% | |||||||||
Class I Shares | -1.48% | 1.99% | 7.13% | |||||||||
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 0.84% | 0.78% | ||||||
Class C Shares | 1.59% | 1.53% | ||||||
Class R3 Shares | 1.09% | 1.03% | ||||||
Class I Shares | 0.59% | 0.53% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses; after waivers and excluding acquired fund fees and expenses, do not exceed 0.75%, 1.50%, 1.00% and 0.50%, respectively, for Class A, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| 12 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 13 |
Fund Performance and Expense Ratios (Unaudited) (continued)
Nuveen Small Cap Index Fund
Refer to the first page of this Fund Performance and Expense Ratios Section for further explanation of the information included within this page.
Fund Performance
| Average Annual Total Returns as of October 31, 2011 | ||||||||||||
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 6.03% | 0.30% | 6.14% | |||||||||
Russell 2000® Index* | 6.71% | 0.68% | 7.02% | |||||||||
Lipper Small-Cap Core Funds Classification Average* | 7.31% | 1.13% | 7.31% | |||||||||
Class C Shares | 5.25% | -0.45% | 5.35% | |||||||||
Class R3 Shares | 5.79% | 0.05% | 5.89% | |||||||||
Class I Shares | 6.33% | 0.54% | 6.38% | |||||||||
Latest Calendar Quarter – Average Annual Total Returns as of September 30, 2011
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | -4.21% | -1.39% | 5.29% | |||||||||
Class C Shares | -4.91% | -2.13% | 4.50% | |||||||||
Class R3 Shares | -4.37% | -1.64% | 5.05% | |||||||||
Class I Shares | -3.91% | -1.14% | 5.52% | |||||||||
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Gross Expense Ratios | Net Expense Ratios | |||||||
Class A Shares | 1.26% | 0.89% | ||||||
Class C Shares | 2.01% | 1.64% | ||||||
Class R3 Shares | 1.51% | 1.14% | ||||||
Class I Shares | 1.01% | 0.64% | ||||||
The Fund’s adviser has contractually agreed to waive fees and reimburse expenses through February 29, 2012, so that total annual Fund operating expenses; after waivers and excluding acquired fund fees and expenses, do not exceed 0.83%, 1.58%, 1.08% and 0.58%, respectively, for Class A, Class C, Class R3 and Class I Shares. Fee waivers and expense reimbursements will not be terminated prior to that time without with approval of the Fund’s Board of Directors.
| * | Refer to the Glossary of Terms Used in this Report for definitions. |
| 14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2011 – Class A Shares
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| Nuveen Investments | 15 |
Holding Summaries (Unaudited) as of October 31, 2011
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Nuveen Equity Index Fund
Portfolio Allocation1
Nuveen Mid Cap Index Fund
Portfolio Allocation1
Nuveen Small Cap Index Fund
Portfolio Allocation1
Portfolio Composition1 | ||||
| Information Technology | 18.4% | |||
| Financials | 12.9% | |||
| Energy | 11.4% | |||
| Health Care | 10.5% | |||
| Consumer Staples | 10.3% | |||
| Consumer Discretionary | 10.1% | |||
| Industrials | 9.8% | |||
| Short-Term Investments | 7.0% | |||
| Other | 9.6% | |||
| Portfolio Composition1 | ||||
| Financials | 17.5% | |||
| Information Technology | 14.8% | |||
| Industrials | 14.0% | |||
| Consumer Discretionary | 13.0% | |||
| Health Care | 10.0% | |||
| Energy | 5.9% | |||
| Materials | 5.9% | |||
| Utilities | 5.9% | |||
| Short-Term Investments | 8.7% | |||
| Other | 4.3% | |||
| Portfolio Composition1 | ||||
| Financials | 19.7% | |||
| Information Technology | 15.5% | |||
| Industrials | 14.1% | |||
| Consumer Discretionary | 12.1% | |||
| Health Care | 11.4% | |||
| Energy | 6.2% | |||
| Short-Term Investments | 9.5% | |||
| Other3 | 11.5% | |||
Top Five Common Stock | ||||
| Exxon Mobil | 3.3% | |||
| Apple | 3.3% | |||
| IBM | 1.9% | |||
| Chevron | 1.8% | |||
| Microsoft | 1.7% | |||
| Top Five Common Stock Holdings2 | ||||
| Dollar Tree | 0.9% | |||
| BorgWarner | 0.8% | |||
| Perrigo | 0.8% | |||
| Green Mountain Coffee Roasters | 0.8% | |||
| Vertex Pharmaceuticals | 0.8% | |||
| Top Five Common Stock Holdings2 | ||||
| Healthspring | 0.30% | |||
| Netlogic Microsystems | 0.30% | |||
| Jack Henry & Associates | 0.30% | |||
| Home Properties – REIT | 0.30% | |||
| World Fuel Services | 0.30% | |||
| 1 | As a percentage of total investments (excluding investments in derivatives and investments purchased with collateral from securities lending) as of October 31, 2011. Holdings are subject to change. |
| 2 | As a percentage of total common stocks as of October 31, 2011. Holdings are subject to change. |
| 3 | Rounds to less than 0.1%. |
| 4 | The percentage of “Other” includes rights and warrants held as of the end of the reporting period. Holdings are subject to change. |
| 16 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Equity Index Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 926.40 | $ | 922.90 | $ | 922.50 | $ | 925.10 | $ | 927.20 | $ | 1,022.08 | $ | 1,018.30 | $ | 1,018.30 | $ | 1,020.82 | $ | 1,023.34 | ||||||||||||||||||||||
| Expenses Incurred During Period | $ | 3.01 | $ | 6.64 | $ | 6.64 | $ | 4.22 | $ | 1.80 | $ | 3.16 | $ | 6.97 | $ | 6.97 | $ | 4.43 | $ | 1.89 | ||||||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .62%, 1.37%, 1.37%, .87% and ..37% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Mid Cap Index Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 879.10 | $ | 876.10 | $ | 878.50 | $ | 880.10 | $ | 1,021.42 | $ | 1,017.64 | $ | 1,020.16 | $ | 1,022.68 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.55 | $ | 7.09 | $ | 4.73 | $ | 2.37 | $ | 3.82 | $ | 7.63 | $ | 5.09 | $ | 2.55 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .75%, 1.50%, 1.00% and .50% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Index Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (5/1/11) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (10/31/11) | $ | 859.90 | $ | 857.10 | $ | 859.10 | $ | 860.90 | $ | 1,021.02 | $ | 1,017.24 | $ | 1,019.74 | $ | 1,022.28 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.89 | $ | 7.40 | $ | 5.06 | $ | 2.72 | $ | 4.23 | $ | 8.03 | $ | 5.50 | $ | 2.96 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .83%, 1.58%, 1.08% and .58% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 17 |
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Nuveen Equity Index Fund (formerly known as First American Equity Index Fund)
Nuveen Mid Cap Index Fund (formerly known as First American Mid Cap Index Fund)
Nuveen Small Cap Index Fund (formerly known as First American Small Cap Index Fund)
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Equity Index Fund (formerly known as First American Equity Index Fund), Nuveen Mid Cap Index Fund (formerly known as First American Mid Cap Index Fund), and Nuveen Small Cap Index Fund (formerly known as First American Small Cap Index Fund) (series of Nuveen Investment Funds, Inc., formerly First American Investment Funds, Inc.) (collectively, the “Funds”) as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. 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 audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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 Nuveen Equity Index Fund (formerly known as First American Equity Index Fund), Nuveen Mid Cap Index Fund (formerly known as First American Mid Cap Index Fund), and Nuveen Small Cap Index Fund (formerly known as First American Small Cap Index Fund) at October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2011
| 18 | Nuveen Investments |
Nuveen Equity Index Fund
(formerly known as First American Equity Index Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 93.3% | ||||||||||||||
Consumer Discretionary – 10.1% | ||||||||||||||
| 5,620 | Abercrombie & Fitch, Class A q | $ | 418,128 | |||||||||||
| 22,047 | Amazon.com q — | 4,707,255 | ||||||||||||
| 7,443 | Apollo Group, Class A — | 352,425 | ||||||||||||
| 3,009 | AutoNation q — | 117,170 | ||||||||||||
| 1,622 | AutoZone q — | 524,863 | ||||||||||||
| 14,855 | Bed Bath & Beyond q — | 918,633 | ||||||||||||
| 18,388 | Best Buy q | 482,317 | ||||||||||||
| 3,980 | Big Lots — | 150,006 | ||||||||||||
| 10,913 | Cablevision Systems, Class A | 157,911 | ||||||||||||
| 13,737 | CarMax q — | 412,934 | ||||||||||||
| 27,706 | Carnival q | 975,528 | ||||||||||||
| 40,670 | CBS, Class B | 1,049,693 | ||||||||||||
| 1,361 | Chipotle Mexican Grill, Class A q — | 457,459 | ||||||||||||
| 17,547 | Coach | 1,141,783 | ||||||||||||
| 166,900 | Comcast, Class A q | 3,913,804 | ||||||||||||
| 15,418 | D.R. Horton | 171,602 | ||||||||||||
| 9,377 | Darden Restaurants q | 448,971 | ||||||||||||
| 3,739 | DeVry | 140,886 | ||||||||||||
| 44,822 | DIRECTV, Class A q — | 2,037,608 | ||||||||||||
| 18,038 | Discovery Communications, Class A q — | 783,931 | ||||||||||||
| 11,822 | Expedia q | 310,446 | ||||||||||||
| 7,300 | Family Dollar Stores | 427,999 | ||||||||||||
| 230,691 | Ford Motor q — | 2,694,471 | ||||||||||||
| 8,444 | GameStop, Class A q — | 215,913 | ||||||||||||
| 14,619 | Gannett | 170,896 | ||||||||||||
| 21,064 | Gap q | 398,110 | ||||||||||||
| 9,518 | Genuine Parts q | 546,619 | ||||||||||||
| 14,980 | Goodyear Tire & Rubber — | 215,113 | ||||||||||||
| 18,564 | H&R Block q | 283,844 | ||||||||||||
| 14,353 | Harley-Davidson | 558,332 | ||||||||||||
| 4,245 | Harman International Industries | 183,214 | ||||||||||||
| 7,342 | Hasbro | 279,437 | ||||||||||||
| 94,970 | Home Depot q | 3,399,925 | ||||||||||||
| 18,123 | International Game Technology | 318,784 | ||||||||||||
| 33,524 | Interpublic Group of Companies | 317,808 | ||||||||||||
| 8,676 | J.C. Penney q | 278,326 | ||||||||||||
| 41,268 | Johnson Controls q | 1,358,955 | ||||||||||||
| 17,065 | Kohl’s | 904,616 | ||||||||||||
| 8,970 | Leggett & Platt q | 196,443 | ||||||||||||
| 9,762 | Lennar, Class A q | 161,463 | ||||||||||||
| 15,032 | Limited Brands q | 642,017 | ||||||||||||
| 76,527 | Lowe’s q | 1,608,598 | ||||||||||||
| 25,930 | Macy’s | 791,643 | ||||||||||||
| Nuveen Investments | 19 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 16,276 | Marriott International, Class A q | $ | 512,694 | |||||||||||
| 20,817 | Mattel | 587,872 | ||||||||||||
| 62,639 | McDonald’s q | 5,816,031 | ||||||||||||
| 18,293 | McGraw-Hill | 777,453 | ||||||||||||
| 2,853 | Netflix q — | 234,174 | ||||||||||||
| 17,691 | Newell Rubbermaid | 261,827 | ||||||||||||
| 138,748 | News, Class A | 2,430,865 | ||||||||||||
| 23,061 | Nike, Class B q | 2,221,928 | ||||||||||||
| 9,948 | Nordstrom q | 504,264 | ||||||||||||
| 18,029 | Omnicom Group | 801,930 | ||||||||||||
| 8,253 | O’Reilly Automotive q — | 627,641 | ||||||||||||
| 3,052 | Priceline.com q — | 1,549,561 | ||||||||||||
| 20,453 | Pulte Group q — | 105,947 | ||||||||||||
| 3,955 | Ralph Lauren | 628,014 | ||||||||||||
| 7,018 | Ross Stores q | 615,689 | ||||||||||||
| 5,824 | Scripps Networks Interactive, Class A | 247,404 | ||||||||||||
| 2,337 | Sears Holdings q — | 182,707 | ||||||||||||
| 5,355 | Sherwin-Williams | 442,912 | ||||||||||||
| 10,221 | Stanley Black & Decker | 652,611 | ||||||||||||
| 43,055 | Staples q | 644,103 | ||||||||||||
| 46,067 | Starbucks | 1,950,477 | ||||||||||||
| 11,667 | Starwood Hotels & Resorts Worldwide q | 584,633 | ||||||||||||
| 40,994 | Target | 2,244,421 | ||||||||||||
| 8,027 | Tiffany & Company | 639,993 | ||||||||||||
| 63,429 | Time Warner q | 2,219,371 | ||||||||||||
| 20,904 | Time Warner Cable q | 1,331,376 | ||||||||||||
| 23,129 | TJX | 1,362,992 | ||||||||||||
| 7,195 | Urban Outfitters q — | 196,064 | ||||||||||||
| 5,262 | VF q | 727,314 | ||||||||||||
| 34,979 | Viacom, Class B | 1,533,829 | ||||||||||||
| 112,680 | Walt Disney q | 3,930,277 | ||||||||||||
| 110 | Washington Post, Class B q | 37,418 | ||||||||||||
| 4,638 | Whirlpool q | 235,657 | ||||||||||||
| 9,963 | Wyndham Worldwide | 335,454 | ||||||||||||
| 4,855 | Wynn Resorts | 644,744 | ||||||||||||
| 28,194 | Yum! Brands | 1,510,353 | ||||||||||||
Total Consumer Discretionary | 74,955,879 | |||||||||||||
Consumer Staples – 10.3% | ||||||||||||||
| 125,746 | Altria Group q | 3,464,302 | ||||||||||||
| 41,028 | Archer-Daniels-Midland q | 1,187,350 | ||||||||||||
| 26,148 | Avon Products | 477,985 | ||||||||||||
| 9,378 | Beam | 463,555 | ||||||||||||
| 5,862 | Brown-Forman, Class B | 438,067 | ||||||||||||
| 10,913 | Campbell Soup q | 362,857 | ||||||||||||
| 7,982 | Clorox | 534,315 | ||||||||||||
| 20 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Consumer Staples (continued) | ||||||||||||||
| 139,398 | Coca-Cola | $ | 9,523,672 | |||||||||||
| 19,364 | Coca-Cola Enterprises | 519,342 | ||||||||||||
| 29,536 | Colgate-Palmolive | 2,669,168 | ||||||||||||
| 25,171 | ConAgra Foods | 637,581 | ||||||||||||
| 10,570 | Constellation Brands, Class A q — | 213,725 | ||||||||||||
| 26,579 | Costco Wholesale | 2,212,702 | ||||||||||||
| 81,646 | CVS Caremark | 2,963,749 | ||||||||||||
| 11,149 | Dean Foods — | 108,368 | ||||||||||||
| 13,172 | Dr. Pepper Snapple Group q | 493,291 | ||||||||||||
| 6,865 | Estee Lauder, Class A | 675,859 | ||||||||||||
| 39,256 | General Mills | 1,512,534 | ||||||||||||
| 19,491 | H.J. Heinz q | 1,041,599 | ||||||||||||
| 9,390 | Hershey | 537,390 | ||||||||||||
| 8,436 | Hormel Foods | 248,609 | ||||||||||||
| 6,911 | JM Smucker | 532,285 | ||||||||||||
| 15,165 | Kellogg q | 822,095 | ||||||||||||
| 23,787 | Kimberly-Clark | 1,658,192 | ||||||||||||
| 107,222 | Kraft Foods, Class A | 3,772,071 | ||||||||||||
| 36,736 | Kroger q | 851,540 | ||||||||||||
| 8,404 | Lorillard | 929,987 | ||||||||||||
| 8,030 | McCormick | 389,937 | ||||||||||||
| 12,382 | Mead Johnson Nutrition | 889,647 | ||||||||||||
| 9,893 | Molson Coors Brewing, Class B | 418,870 | ||||||||||||
| 96,081 | PepsiCo | 6,048,299 | ||||||||||||
| 106,638 | Philip Morris International | 7,450,797 | ||||||||||||
| 166,818 | Procter & Gamble | 10,674,684 | ||||||||||||
| 20,526 | Reynolds American q | 793,946 | ||||||||||||
| 21,248 | Safeway q | 411,574 | ||||||||||||
| 35,749 | Sara Lee | 636,332 | ||||||||||||
| 12,883 | SUPERVALU | 103,322 | ||||||||||||
| 35,983 | Sysco | 997,449 | ||||||||||||
| 17,998 | Tyson Foods, Class A | 347,361 | ||||||||||||
| 54,968 | Walgreen | 1,824,938 | ||||||||||||
| 106,716 | Wal-Mart Stores q | 6,052,931 | ||||||||||||
| 9,573 | Whole Foods Market q | 690,405 | ||||||||||||
Total Consumer Staples | 76,582,682 | |||||||||||||
Energy – 11.4% | ||||||||||||||
| 14,164 | Alpha Natural Resources q — | 340,503 | ||||||||||||
| 30,222 | Anadarko Petroleum | 2,372,427 | ||||||||||||
| 23,309 | Apache q | 2,322,276 | ||||||||||||
| 26,482 | Baker Hughes | 1,535,691 | ||||||||||||
| 6,343 | Cabot Oil & Gas | 492,978 | ||||||||||||
| 14,878 | Cameron International q — | 731,105 | ||||||||||||
| 40,120 | Chesapeake Energy q | 1,128,174 | ||||||||||||
| 121,603 | Chevron q | 12,774,394 | ||||||||||||
| Nuveen Investments | 21 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Energy (continued) | ||||||||||||||
| 83,357 | ConocoPhillips | $ | 5,805,815 | |||||||||||
| 13,766 | CONSOL Energy | 588,634 | ||||||||||||
| 24,426 | Denbury Resources q — | 383,488 | ||||||||||||
| 25,287 | Devon Energy q | 1,642,391 | ||||||||||||
| 4,302 | Diamond Offshore Drilling | 281,953 | ||||||||||||
| 46,762 | El Paso q | 1,169,518 | ||||||||||||
| 16,309 | EOG Resources q | 1,458,514 | ||||||||||||
| 295,183 | Exxon Mobil | 23,050,839 | ||||||||||||
| 15,414 | FMC Technologies q — | 690,855 | ||||||||||||
| 55,832 | Halliburton | 2,085,884 | ||||||||||||
| 6,502 | Helmerich & Payne q | 345,776 | ||||||||||||
| 18,364 | Hess | 1,148,852 | ||||||||||||
| 43,347 | Marathon Oil | 1,128,322 | ||||||||||||
| 21,643 | Marathon Petroleum q | 776,984 | ||||||||||||
| 11,748 | Murphy Oil | 650,487 | ||||||||||||
| 17,453 | Nabors Industries q — | 319,913 | ||||||||||||
| 25,721 | National Oilwell Varco q | 1,834,679 | ||||||||||||
| 8,032 | Newfield Exploration — | 323,368 | ||||||||||||
| 14,715 | Noble | 528,857 | ||||||||||||
| 10,716 | Noble Energy | 957,367 | ||||||||||||
| 49,343 | Occidental Petroleum | 4,585,938 | ||||||||||||
| 16,442 | Peabody Energy | 713,090 | ||||||||||||
| 7,089 | Pioneer Natural Resources | 594,767 | ||||||||||||
| 10,741 | QEP Resources | 381,843 | ||||||||||||
| 9,778 | Range Resources q | 673,118 | ||||||||||||
| 7,736 | Rowan q — | 266,815 | ||||||||||||
| 81,921 | Schlumberger | 6,018,737 | ||||||||||||
| 21,126 | Southwestern Energy q — | 888,137 | ||||||||||||
| 40,620 | Spectra Energy | 1,162,951 | ||||||||||||
| 6,556 | Sunoco | 244,080 | ||||||||||||
| 9,824 | Tesoro q — | 254,835 | ||||||||||||
| 34,734 | Valero Energy q | 854,456 | ||||||||||||
| 35,752 | Williams | 1,076,493 | ||||||||||||
Total Energy | 84,585,304 | |||||||||||||
Financials – 13.0% | ||||||||||||||
| 20,518 | ACE | 1,480,374 | ||||||||||||
| 28,361 | Aflac q | 1,278,797 | ||||||||||||
| 31,363 | Allstate | 826,101 | ||||||||||||
| 63,052 | American Express | 3,191,693 | ||||||||||||
| 26,519 | American International Group q — | 654,754 | ||||||||||||
| 14,333 | Ameriprise Financial | 669,064 | ||||||||||||
| 19,834 | AON | 924,661 | ||||||||||||
| 7,519 | Apartment Investment & Management, Class A - REIT | 185,494 | ||||||||||||
| 5,736 | Assurant | 221,065 | ||||||||||||
| 5,886 | AvalonBay Communities - REIT q | 786,899 | ||||||||||||
| 615,260 | Bank of America | 4,202,226 | ||||||||||||
| 22 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 74,838 | Bank of New York Mellon | $ | 1,592,554 | |||||||||||
| 42,318 | BB&T q | 987,702 | ||||||||||||
| 106,767 | Berkshire Hathaway, Class B q — | 8,312,880 | ||||||||||||
| 5,612 | BlackRock | 885,517 | ||||||||||||
| 9,151 | Boston Properties - REIT | 905,857 | ||||||||||||
| 27,888 | Capital One Financial q | 1,273,366 | ||||||||||||
| 18,712 | CB Richard Ellis Group — | 332,699 | ||||||||||||
| 64,253 | Charles Schwab q | 789,027 | ||||||||||||
| 17,359 | Chubb | 1,163,921 | ||||||||||||
| 9,905 | Cincinnati Financial q | 286,651 | ||||||||||||
| 177,150 | Citigroup | 5,596,169 | ||||||||||||
| 4,246 | CME Group q | 1,170,028 | ||||||||||||
| 11,341 | Comerica | 289,763 | ||||||||||||
| 33,129 | Discover Financial Services | 780,519 | ||||||||||||
| 15,109 | E*TRADE Financial — | 163,933 | ||||||||||||
| 19,608 | Equity Residential Properties Trust - REIT q | 1,150,597 | ||||||||||||
| 6,332 | Federated Investors, Class B | 123,727 | ||||||||||||
| 56,042 | Fifth Third Bancorp | 673,064 | ||||||||||||
| 16,010 | First Horizon National q | 111,910 | ||||||||||||
| 8,837 | Franklin Resources | 942,289 | ||||||||||||
| 29,792 | Genworth Financial, Class A — | 190,073 | ||||||||||||
| 30,708 | Goldman Sachs Group | 3,364,062 | ||||||||||||
| 27,042 | Hartford Financial Services Group q | 520,559 | ||||||||||||
| 26,638 | HCP - REIT | 1,061,524 | ||||||||||||
| 8,504 | Health Care - REIT q | 448,076 | ||||||||||||
| 44,004 | Host Hotels & Resorts - REIT q | 627,937 | ||||||||||||
| 32,026 | Hudson City Bancorp | 200,163 | ||||||||||||
| 55,350 | Huntington Bancshares q | 286,713 | ||||||||||||
| 5,042 | IntercontinentalExchange q — | 654,855 | ||||||||||||
| 27,373 | Invesco | 549,376 | ||||||||||||
| 11,733 | Janus Capital Group | 76,968 | ||||||||||||
| 236,715 | JPMorgan Chase | 8,228,213 | ||||||||||||
| 57,848 | KeyCorp | 408,407 | ||||||||||||
| 24,856 | Kimco Realty - REIT q | 434,234 | ||||||||||||
| 7,958 | Legg Mason q | 218,845 | ||||||||||||
| 12,027 | Leucadia National q | 322,684 | ||||||||||||
| 18,719 | Lincoln National | 356,597 | ||||||||||||
| 18,890 | Loew’s | 749,933 | ||||||||||||
| 6,707 | M&T Bank | 510,470 | ||||||||||||
| 32,884 | Marsh & McLennan | 1,006,908 | ||||||||||||
| 64,202 | MetLife | 2,257,342 | ||||||||||||
| 13,640 | Moody’s q | 484,084 | ||||||||||||
| 90,124 | Morgan Stanley | 1,589,787 | ||||||||||||
| 7,741 | NASDAQ OMX Group — | 193,912 | ||||||||||||
| 14,630 | Northern Trust | 592,076 | ||||||||||||
| Nuveen Investments | 23 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 16,788 | NYSE Euronext | $ | 446,057 | |||||||||||
| 22,857 | Peoples United Financial | 291,426 | ||||||||||||
| 10,382 | Plum Creek Timber - REIT q | 390,986 | ||||||||||||
| 31,948 | PNC Financial Services Group | 1,715,927 | ||||||||||||
| 19,032 | Principal Financial Group | 490,645 | ||||||||||||
| 38,775 | Progressive | 737,113 | ||||||||||||
| 29,504 | ProLogis - REIT q | 878,039 | ||||||||||||
| 29,506 | Prudential Financial | 1,599,225 | ||||||||||||
| 8,976 | Public Storage - REIT q | 1,158,354 | ||||||||||||
| 76,423 | Regions Financial | 300,342 | ||||||||||||
| 18,813 | Simon Property Group - REIT q | 2,416,343 | ||||||||||||
| 31,224 | SLM | 426,832 | ||||||||||||
| 30,600 | State Street q | 1,235,934 | ||||||||||||
| 32,594 | SunTrust Banks | 643,080 | ||||||||||||
| 15,564 | T. Rowe Price Group q | 822,402 | ||||||||||||
| 6,210 | Torchmark | 254,175 | ||||||||||||
| 25,421 | Travelers | 1,483,315 | ||||||||||||
| 116,621 | U.S. Bancorp q | 2,984,331 | ||||||||||||
| 18,423 | Unum Group | 439,204 | ||||||||||||
| 11,838 | Ventas - REIT q | 658,311 | ||||||||||||
| 10,519 | Vornado Realty Trust - REIT q | 871,078 | ||||||||||||
| 320,542 | Wells Fargo | 8,305,243 | ||||||||||||
| 19,932 | XL Group | 433,322 | ||||||||||||
| 11,189 | Zions Bancorporation q | 194,241 | ||||||||||||
Total Financials | 96,463,024 | |||||||||||||
Health Care – 10.5% | ||||||||||||||
| 94,501 | Abbott Laboratories | 5,090,769 | ||||||||||||
| 22,639 | Aetna | 900,127 | ||||||||||||
| 18,669 | Allergan | 1,570,436 | ||||||||||||
| 16,346 | AmerisourceBergen q | 666,917 | ||||||||||||
| 56,102 | Amgen | 3,212,962 | ||||||||||||
| 34,500 | Baxter International | 1,896,810 | ||||||||||||
| 13,201 | Becton, Dickinson & Company | 1,032,714 | ||||||||||||
| 14,726 | Biogen Idec — | 1,713,517 | ||||||||||||
| 97,999 | Boston Scientific — | 577,214 | ||||||||||||
| 103,552 | Bristol-Myers Squibb q | 3,271,208 | ||||||||||||
| 5,261 | C.R. Bard | 452,183 | ||||||||||||
| 21,289 | Cardinal Health | 942,464 | ||||||||||||
| 13,576 | CareFusion — | 347,546 | ||||||||||||
| 27,855 | Celgene — | 1,805,840 | ||||||||||||
| 5,616 | Cerner q — | 356,223 | ||||||||||||
| 16,403 | CIGNA | 727,309 | ||||||||||||
| 9,089 | Coventry Health Care — | 289,121 | ||||||||||||
| 29,848 | Covidien q | 1,404,050 | ||||||||||||
| 5,670 | DaVita — | 396,900 | ||||||||||||
| 24 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 8,581 | DENTSPLY International q | $ | 317,154 | |||||||||||
| 3,721 | Edwards Lifesciences — | 280,638 | ||||||||||||
| 61,850 | Eli Lilly | 2,298,346 | ||||||||||||
| 29,639 | Express Scripts q — | 1,355,391 | ||||||||||||
| 16,669 | Forest Laboratories — | 521,740 | ||||||||||||
| 46,835 | Gilead Sciences — | 1,951,146 | ||||||||||||
| 10,010 | Hospira — | 314,815 | ||||||||||||
| 10,129 | Humana | 859,851 | ||||||||||||
| 2,521 | Intuitive Surgical q — | 1,093,761 | ||||||||||||
| 166,369 | Johnson & Johnson q | 10,712,499 | ||||||||||||
| 6,146 | Laboratory Corporation of America q — | 515,342 | ||||||||||||
| 11,128 | Life Technologies — | 452,576 | ||||||||||||
| 14,953 | McKesson | 1,219,417 | ||||||||||||
| 23,407 | Medco Health Solutions — | 1,284,108 | ||||||||||||
| 64,109 | Medtronic | 2,227,147 | ||||||||||||
| 187,037 | Merck | 6,452,777 | ||||||||||||
| 24,596 | Mylan — | 481,344 | ||||||||||||
| 5,681 | Patterson Companies | 178,781 | ||||||||||||
| 7,501 | PerkinElmer | 155,046 | ||||||||||||
| 473,672 | Pfizer | 9,122,922 | ||||||||||||
| 9,609 | Quest Diagnostics q | 536,182 | ||||||||||||
| 20,004 | St. Jude Medical | 780,156 | ||||||||||||
| 20,039 | Stryker q | 960,068 | ||||||||||||
| 31,365 | Tenet Healthcare q — | 148,356 | ||||||||||||
| 24,341 | Thermo Fisher Scientific — | 1,223,622 | ||||||||||||
| 65,334 | UnitedHealth Group | 3,135,379 | ||||||||||||
| 7,114 | Varian Medical Systems q — | 417,734 | ||||||||||||
| 8,528 | Watson Pharmaceuticals q — | 572,740 | ||||||||||||
| 21,896 | WellPoint | 1,508,634 | ||||||||||||
| 11,564 | Zimmer Holdings q — | 608,613 | ||||||||||||
Total Health Care | 78,340,595 | |||||||||||||
Industrials – 9.8% | ||||||||||||||
| 43,076 | 3M q | 3,403,865 | ||||||||||||
| 6,432 | Avery Dennison q | 171,091 | ||||||||||||
| 44,993 | Boeing | 2,960,089 | ||||||||||||
| 10,357 | C.H. Robinson Worldwide q | 719,087 | ||||||||||||
| 39,224 | Caterpillar | 3,705,100 | ||||||||||||
| 6,771 | Cintas | 202,385 | ||||||||||||
| 66,495 | CSX | 1,476,854 | ||||||||||||
| 11,821 | Cummins | 1,175,362 | ||||||||||||
| 34,933 | Danaher | 1,689,011 | ||||||||||||
| 25,130 | Deere & Company q | 1,907,367 | ||||||||||||
| 11,294 | Dover q | 627,156 | ||||||||||||
| 2,987 | Dun & Bradstreet | 199,711 | ||||||||||||
| 20,709 | Eaton | 928,177 | ||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 45,212 | Emerson Electric q | $ | 2,175,602 | |||||||||||
| 7,432 | Equifax | 261,234 | ||||||||||||
| 12,876 | Expeditors International of Washington | 587,146 | ||||||||||||
| 17,918 | Fastenal | 682,497 | ||||||||||||
| 19,247 | FedEx | 1,574,982 | ||||||||||||
| 3,482 | First Solar q — | 173,299 | ||||||||||||
| 3,384 | Flowserve q | 313,663 | ||||||||||||
| 10,552 | Fluor | 599,881 | ||||||||||||
| 21,964 | General Dynamics | 1,409,869 | ||||||||||||
| 643,555 | General Electric | 10,753,803 | ||||||||||||
| 7,590 | Goodrich | 930,762 | ||||||||||||
| 47,502 | Honeywell International | 2,489,105 | ||||||||||||
| 29,835 | Illinois Tool Works q | 1,450,876 | ||||||||||||
| 20,093 | Ingersoll-Rand q | 625,495 | ||||||||||||
| 12,923 | Iron Mountain q | 399,708 | ||||||||||||
| 11,249 | ITT | 512,954 | ||||||||||||
| 7,744 | Jacobs Engineering Group q — | 300,467 | ||||||||||||
| 6,752 | Joy Global | 588,774 | ||||||||||||
| 6,398 | L-3 Communications Holdings q | 433,656 | ||||||||||||
| 16,708 | Lockheed Martin q | 1,268,137 | ||||||||||||
| 21,728 | Masco | 208,589 | ||||||||||||
| 7,842 | Monster Worldwide q — | 72,382 | ||||||||||||
| 21,113 | Norfolk Southern | 1,562,151 | ||||||||||||
| 16,881 | Northrop Grumman q | 974,878 | ||||||||||||
| 22,190 | Paccar | 959,496 | ||||||||||||
| 7,061 | Pall q | 361,311 | ||||||||||||
| 9,413 | Parker Hannifin | 767,630 | ||||||||||||
| 12,272 | Pitney Bowes q | 250,103 | ||||||||||||
| 8,743 | Precision Castparts q | 1,426,420 | ||||||||||||
| 12,884 | Quanta Services q — | 269,147 | ||||||||||||
| 12,242 | R.R. Donnelley & Sons | 199,545 | ||||||||||||
| 21,468 | Raytheon | 948,671 | ||||||||||||
| 19,430 | Republic Services | 552,978 | ||||||||||||
| 8,795 | Robert Half International q | 232,452 | ||||||||||||
| 8,694 | Rockwell Automation q | 588,149 | ||||||||||||
| 9,330 | Rockwell Collins | 520,894 | ||||||||||||
| 6,149 | Roper Industries q | 498,684 | ||||||||||||
| 3,104 | Ryder System q | 158,118 | ||||||||||||
| 3,532 | Snap-On q | 189,562 | ||||||||||||
| 48,554 | Southwest Airlines | 415,137 | ||||||||||||
| 5,228 | Stericycle q — | 436,956 | ||||||||||||
| 16,837 | Textron q | 326,975 | ||||||||||||
| 28,191 | Tyco International | 1,284,100 | ||||||||||||
| 29,632 | Union Pacific | 2,950,458 | ||||||||||||
| 59,545 | United Parcel Service, Class B q | 4,182,441 | ||||||||||||
| 26 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 55,168 | United Technologies | $ | 4,302,000 | |||||||||||
| 3,732 | W.W. Grainger | 639,329 | ||||||||||||
| 28,658 | Waste Management q | 943,709 | ||||||||||||
Total Industrials | 72,919,430 | |||||||||||||
Information Technology – 18.5% | ||||||||||||||
| 35,562 | Accenture, Class A | 2,142,966 | ||||||||||||
| 29,983 | Adobe Systems — | 881,800 | ||||||||||||
| 35,256 | Advanced Micro Devices q — | 205,542 | ||||||||||||
| 21,080 | Agilent Technologies — | 781,436 | ||||||||||||
| 11,194 | Akamai Technologies — | 301,566 | ||||||||||||
| 19,671 | Altera | 745,924 | ||||||||||||
| 10,319 | Amphenol, Class A | 490,049 | ||||||||||||
| 18,963 | Analog Devices q | 693,477 | ||||||||||||
| 56,284 | Apple — | 22,782,638 | ||||||||||||
| 79,988 | Applied Materials | 985,452 | ||||||||||||
| 14,810 | Autodesk — | 512,426 | ||||||||||||
| 30,352 | Automatic Data Processing | 1,588,320 | ||||||||||||
| 10,888 | BMC Software — | 378,467 | ||||||||||||
| 29,232 | Broadcom, Class A | 1,054,983 | ||||||||||||
| 22,981 | CA q | 497,768 | ||||||||||||
| 333,921 | Cisco Systems | 6,187,556 | ||||||||||||
| 11,431 | Citrix Systems — | 832,520 | ||||||||||||
| 19,516 | Cognizant Technology Solutions, Class A — | 1,419,789 | ||||||||||||
| 9,414 | Computer Sciences q | 296,164 | ||||||||||||
| 13,271 | Compuware — | 112,140 | ||||||||||||
| 95,385 | Corning | 1,363,051 | ||||||||||||
| 94,148 | Dell — | 1,488,480 | ||||||||||||
| 69,629 | eBay — | 2,216,291 | ||||||||||||
| 21,328 | Electronic Arts — | 498,009 | ||||||||||||
| 125,365 | EMC q — | 3,072,696 | ||||||||||||
| 4,970 | F5 Networks — | 516,632 | ||||||||||||
| 10,191 | Fidelity National Information Services | 266,800 | ||||||||||||
| 8,594 | Fiserv — | 505,929 | ||||||||||||
| 10,243 | FLIR Systems | 269,391 | ||||||||||||
| 15,291 | Google, Class A — | 9,062,058 | ||||||||||||
| 7,298 | Harris q | 275,500 | ||||||||||||
| 125,924 | Hewlett-Packard | 3,350,838 | ||||||||||||
| 72,506 | IBM | 13,386,783 | ||||||||||||
| 318,792 | Intel | 7,823,157 | ||||||||||||
| 17,551 | Intuit — | 941,962 | ||||||||||||
| 12,605 | Jabil Circuit q | 259,159 | ||||||||||||
| 14,561 | JDS Uniphase — | 174,732 | ||||||||||||
| 32,358 | Juniper Networks — | 791,800 | ||||||||||||
| 10,139 | KLA-Tencor | 477,446 | ||||||||||||
| 4,151 | Lexmark International, Class A — | 131,587 | ||||||||||||
| Nuveen Investments | 27 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 13,836 | Linear Technology | $ | 447,041 | |||||||||||
| 38,819 | LSI Logic — | 242,619 | ||||||||||||
| 6,545 | MasterCard, Class A | 2,272,686 | ||||||||||||
| 13,989 | MEMC Electronic Materials — | 83,794 | ||||||||||||
| 11,571 | Microchip Technology q | 418,407 | ||||||||||||
| 55,251 | Micron Technology q — | 308,853 | ||||||||||||
| 452,698 | Microsoft | 12,055,348 | ||||||||||||
| 8,304 | Molex q | 205,026 | ||||||||||||
| 15,880 | Motorola Mobility Holdings — | 617,414 | ||||||||||||
| 18,332 | Motorola Solutions | 859,954 | ||||||||||||
| 22,366 | NetApp q — | 916,111 | ||||||||||||
| 4,227 | Novellus Systems — | 146,043 | ||||||||||||
| 36,653 | NVIDIA — | 542,464 | ||||||||||||
| 239,874 | Oracle | 7,860,671 | ||||||||||||
| 22,005 | Paychex | 641,226 | ||||||||||||
| 101,978 | QUALCOMM | 5,262,065 | ||||||||||||
| 12,383 | Red Hat q — | 614,816 | ||||||||||||
| 16,769 | SAIC — | 208,439 | ||||||||||||
| 8,063 | Salesforce.com q — | 1,073,750 | ||||||||||||
| 14,523 | SanDisk q — | 735,880 | ||||||||||||
| 45,517 | Symantec — | 774,244 | ||||||||||||
| 20,585 | TE Connectivity | 731,797 | ||||||||||||
| 20,516 | Tellabs | 88,834 | ||||||||||||
| 12,005 | Teradata — | 716,218 | ||||||||||||
| 11,882 | Teradyne — | 170,150 | ||||||||||||
| 70,140 | Texas Instruments | 2,155,402 | ||||||||||||
| 10,682 | Total System Services | 212,465 | ||||||||||||
| 10,102 | VeriSign q | 324,173 | ||||||||||||
| 30,728 | Visa, Class A q | 2,865,694 | ||||||||||||
| 5,878 | Waters — | 470,945 | ||||||||||||
| 14,900 | Western Digital — | 396,936 | ||||||||||||
| 38,109 | Western Union | 665,764 | ||||||||||||
| 85,205 | Xerox | 696,977 | ||||||||||||
| 16,097 | Xilinx | 538,606 | ||||||||||||
| 76,654 | Yahoo! — | 1,198,869 | ||||||||||||
Total Information Technology | 137,282,965 | |||||||||||||
Materials – 3.4% | ||||||||||||||
| 12,939 | Air Products & Chemicals q | 1,114,565 | ||||||||||||
| 4,409 | Airgas | 304,001 | ||||||||||||
| 7,073 | AK Steel q | 58,918 | ||||||||||||
| 64,607 | Alcoa | 695,171 | ||||||||||||
| 6,455 | Allegheny Technologies | 299,512 | ||||||||||||
| 9,930 | Ball | 343,281 | ||||||||||||
| 5,930 | Bemis | 166,692 | ||||||||||||
| 4,357 | CF Industries Holdings | 707,010 | ||||||||||||
| 8,865 | Cliffs Natural Resources q | 604,770 | ||||||||||||
| 28 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Materials (continued) | ||||||||||||||
| 71,713 | Dow Chemical | $ | 1,999,358 | |||||||||||
| 56,613 | E.I. Du Pont de Nemours q | 2,721,387 | ||||||||||||
| 8,523 | Eastman Chemical q | 334,869 | ||||||||||||
| 14,082 | Ecolab q | 758,175 | ||||||||||||
| 4,601 | FMC q | 362,973 | ||||||||||||
| 57,546 | Freeport-McMoRan Copper & Gold | 2,316,803 | ||||||||||||
| 5,157 | International Flavors & Fragrances q | 312,308 | ||||||||||||
| 26,537 | International Paper | 735,076 | ||||||||||||
| 10,362 | MeadWestvaco | 289,203 | ||||||||||||
| 32,465 | Monsanto | 2,361,829 | ||||||||||||
| 14,401 | Mosaic | 843,323 | ||||||||||||
| 30,066 | Newmont Mining | 2,009,311 | ||||||||||||
| 19,215 | Nucor q | 725,943 | ||||||||||||
| 9,968 | Owens-Illinois — | 200,157 | ||||||||||||
| 9,563 | PPG Industries | 826,339 | ||||||||||||
| 18,344 | Praxair | 1,865,034 | ||||||||||||
| 9,788 | Sealed Air q | 174,226 | ||||||||||||
| 7,411 | Sigma-Aldrich q | 485,272 | ||||||||||||
| 5,075 | Titanium Metals | 85,006 | ||||||||||||
| 8,742 | United States Steel | 221,697 | ||||||||||||
| 7,846 | Vulcan Materials q | 245,501 | ||||||||||||
| 33,677 | Weyerhaeuser | 605,512 | ||||||||||||
Total Materials | 24,773,222 | |||||||||||||
Telecommunication Services – 2.8% | ||||||||||||||
| 24,026 | American Tower, Class A — | 1,323,832 | ||||||||||||
| 359,771 | AT&T q | 10,544,889 | ||||||||||||
| 38,254 | CenturyTel | 1,348,836 | ||||||||||||
| 60,421 | Frontier Communications q | 378,235 | ||||||||||||
| 17,652 | MetroPCS Communications — | 150,042 | ||||||||||||
| 181,794 | Sprint Nextel q — | 467,211 | ||||||||||||
| 171,847 | Verizon Communications q | 6,354,902 | ||||||||||||
| 30,961 | Windstream q | 376,795 | ||||||||||||
Total Telecommunication Services | 20,944,742 | |||||||||||||
Utilities – 3.5% | ||||||||||||||
| 39,901 | AES — | 447,689 | ||||||||||||
| 14,671 | Ameren | 467,711 | ||||||||||||
| 29,279 | American Electric Power | 1,150,079 | ||||||||||||
| 27,733 | CenterPoint Energy | 577,956 | ||||||||||||
| 18,300 | CMS Energy | 381,006 | ||||||||||||
| 17,781 | Consolidated Edison q | 1,028,986 | ||||||||||||
| 12,779 | Constellation Energy Group | 507,326 | ||||||||||||
| 34,557 | Dominion Resources | 1,782,797 | ||||||||||||
| 10,281 | DTE Energy | 535,743 | ||||||||||||
| 80,855 | Duke Energy q | 1,651,059 | ||||||||||||
| 19,780 | Edison International | 803,068 | ||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments
Nuveen Equity Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Utilities (continued) | ||||||||||||||
| 10,733 | Entergy | $ | 742,402 | |||||||||||
| 9,074 | EQT | 576,199 | ||||||||||||
| 40,232 | Exelon q | 1,785,898 | ||||||||||||
| 25,390 | FirstEnergy | 1,141,534 | ||||||||||||
| 4,730 | Integrys Energy Group | 250,264 | ||||||||||||
| 25,641 | NextEra Energy | 1,446,152 | ||||||||||||
| 2,765 | Nicor q | 155,531 | ||||||||||||
| 17,036 | NiSource | 376,325 | ||||||||||||
| 10,739 | Northeast Utilities | 371,247 | ||||||||||||
| 14,647 | NRG Energy q — | 313,739 | ||||||||||||
| 3,934 | ONEOK | 299,181 | ||||||||||||
| 13,744 | Pepco Holdings | 272,131 | ||||||||||||
| 24,420 | PG&E | 1,047,618 | ||||||||||||
| 6,624 | Pinnacle West Capital | 301,922 | ||||||||||||
| 32,629 | PPL q | 958,314 | ||||||||||||
| 17,886 | Progress Energy | 931,861 | ||||||||||||
| 30,713 | Public Service Enterprise Group | 1,035,028 | ||||||||||||
| 6,971 | SCANA q | 294,734 | ||||||||||||
| 14,543 | Sempra Energy | 781,395 | ||||||||||||
| 52,068 | Southern | 2,249,339 | ||||||||||||
| 13,096 | TECO Energy | 243,193 | ||||||||||||
| 14,190 | Wisconsin Energy | 460,182 | ||||||||||||
| 29,417 | Xcel Energy | 760,429 | ||||||||||||
Total Utilities | 26,128,038 | |||||||||||||
Total Common Stocks (cost $417,582,423) | 692,975,881 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 25.7% | ||||||||||||||
| 190,918,082 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 190,918,082 | |||||||||||
Total Investments Purchased With Collateral From Securities Lending (cost $190,918,082) | 190,918,082 | |||||||||||||
| Shares/ Principal Amount (000) | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 7.0% | ||||||||||||||
Money Market Funds – 6.2% | ||||||||||||||
| 45,702,721 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 45,702,721 | |||||||||||
U.S. Treasury Bills – 0.8% | ||||||||||||||
U.S. Treasury Bill | ||||||||||||||
| $ | 6,400 | 0.022%, 03/01/2012 ¨ | 6,399,526 | |||||||||||
Total Short-Term Investments (cost $52,102,291) | 52,102,247 | |||||||||||||
Total Investments (cost $660,602,796) – 126.0% | 935,996,210 | |||||||||||||
Other Assets Less Liabilities – (26.0)% ¯ | (193,087,909) | |||||||||||||
Net Assets – 100.0% | $ | 742,908,301 | ||||||||||||
| 30 | Nuveen Investments |
Investments in Derivatives at October 31, 2011:
Futures Contracts outstanding:
| Type | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
S&P 500 Index | Long | 161 | 12/11 | $ | 50,284,325 | $ | 1,260,193 | |||||||||||||
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivative instruments as noted within Investments in Derivatives at October 31 2011. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| Nuveen Investments | 31 |
Portfolio of Investments
Nuveen Mid Cap Index Fund
(formerly known as First American Mid Cap Index Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 91.4% | ||||||||||||||
Consumer Discretionary – 13.0% | ||||||||||||||
| 12,253 | 99 Cents Only Stores — q | $ | 267,115 | |||||||||||
| 20,392 | Aaron’s q | 545,690 | ||||||||||||
| 19,243 | Advance Auto Parts | 1,252,142 | ||||||||||||
| 20,931 | Aeropostale — q | 285,917 | ||||||||||||
| 14,860 | Amc Networks — | 484,733 | ||||||||||||
| 49,563 | American Eagle Outfitters | 650,762 | ||||||||||||
| 10,543 | American Greetings, Class A q | 168,793 | ||||||||||||
| 14,041 | Ann — q | 374,052 | ||||||||||||
| 17,811 | Ascena Retail Group — q | 514,738 | ||||||||||||
| 12,138 | Bally Technologies — q | 440,245 | ||||||||||||
| 10,610 | Barnes & Noble q | 130,185 | ||||||||||||
| 7,630 | Bob Evans Farms | 251,027 | ||||||||||||
| 28,417 | BorgWarner — q | 2,173,616 | ||||||||||||
| 22,476 | Brinker International | 514,700 | ||||||||||||
| 15,943 | Career Education — q | 257,161 | ||||||||||||
| 15,087 | Cheesecake Factory — q | 422,285 | ||||||||||||
| 44,713 | Chico’s FAS q | 552,653 | ||||||||||||
| 15,594 | Collective Brands — q | 227,828 | ||||||||||||
| 9,986 | Deckers Outdoor — | 1,150,787 | ||||||||||||
| 24,966 | Dick’s Sporting Goods — | 975,921 | ||||||||||||
| 31,632 | Dollar Tree — | 2,529,295 | ||||||||||||
| 18,221 | DreamWorks Animation, Class A — q | 338,000 | ||||||||||||
| 39,656 | Foot Locker q | 866,880 | ||||||||||||
| 13,742 | Fossil — | 1,424,496 | ||||||||||||
| 37,105 | Gentex q | 1,117,603 | ||||||||||||
| 17,319 | Guess? | 571,354 | ||||||||||||
| 25,183 | Hanesbrands — | 664,076 | ||||||||||||
| 7,378 | International Speedway, Class A | 176,039 | ||||||||||||
| 5,254 | ITT Educational Services — q | 325,538 | ||||||||||||
| 14,919 | J. Crew Group Escrow — | — | ||||||||||||
| 12,316 | John Wiley & Sons, Class A | 585,749 | ||||||||||||
| 18,719 | KB HOME q | 130,471 | ||||||||||||
| 15,174 | Lamar Advertising, Class A — q | 341,263 | ||||||||||||
| 10,615 | Life Time Fitness — q | 457,825 | ||||||||||||
| 37,962 | LKQ — | 1,107,731 | ||||||||||||
| 9,734 | M.D.C. Holdings q | 218,042 | ||||||||||||
| 7,579 | Matthews International, Class A | 266,326 | ||||||||||||
| 9,683 | Meredith q | 259,795 | ||||||||||||
| 14,796 | Mohawk Industries — q | 779,009 | ||||||||||||
| 31,345 | New York Times, Class A — q | 238,849 | ||||||||||||
| 1,395 | NVR — q | 896,636 | ||||||||||||
| 72,601 | Office Depot — | 166,256 | ||||||||||||
| 7,637 | Panera Bread, Class A — q | 1,020,991 | ||||||||||||
| 32 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 29,246 | PetSmart | $ | 1,373,100 | |||||||||||
| 17,922 | Polaris Industries | 1,135,180 | ||||||||||||
| 17,514 | PVH q | 1,303,217 | ||||||||||||
| 25,869 | RadioShack q | 308,100 | ||||||||||||
| 14,967 | Regis q | 244,860 | ||||||||||||
| 15,991 | Rent-A-Center | 546,093 | ||||||||||||
| 11,514 | Ryland Group q | 155,439 | ||||||||||||
| 41,481 | Saks — q | 438,454 | ||||||||||||
| 6,531 | Scholastic q | 175,357 | ||||||||||||
| 15,977 | Scientific Games, Class A — | 138,840 | ||||||||||||
| 61,444 | Service International | 614,440 | ||||||||||||
| 17,514 | Sotheby’s Holdings, Class A | 616,843 | ||||||||||||
| 3,114 | Strayer Education q | 265,344 | ||||||||||||
| 11,582 | Thor Industries q | 306,228 | ||||||||||||
| 38,132 | Toll Brothers — q | 665,022 | ||||||||||||
| 18,512 | Tractor Supply q | 1,313,241 | ||||||||||||
| 15,813 | Tupperware | 894,067 | ||||||||||||
| 9,489 | Under Armour, Class A — | 800,967 | ||||||||||||
| 12,327 | Valassis Communications — q | 240,746 | ||||||||||||
| 11,147 | Warnaco Group — q | 547,318 | ||||||||||||
| 78,053 | Wendy’s/Arby’s Group, Class A | 394,948 | ||||||||||||
| 27,097 | Williams-Sonoma | 1,017,221 | ||||||||||||
| 14,503 | WMS Industries — | 317,761 | ||||||||||||
Total Consumer Discretionary | 39,935,360 | |||||||||||||
Consumer Staples – 3.9% | ||||||||||||||
| 37,220 | Church & Dwight | 1,644,380 | ||||||||||||
| 19,894 | Corn Products International | 964,859 | ||||||||||||
| 17,785 | Energizer Holdings — | 1,312,355 | ||||||||||||
| 29,354 | Flowers Foods q | 592,657 | ||||||||||||
| 33,340 | Green Mountain Coffee Roasters — q | 2,167,767 | ||||||||||||
| 19,983 | Hansen Natural — | 1,780,285 | ||||||||||||
| 4,973 | Lancaster Colony q | �� | 330,804 | |||||||||||
| 14,293 | Ralcorp Holdings — | 1,155,446 | ||||||||||||
| 12,742 | Ruddick | 556,953 | ||||||||||||
| 42,781 | Smithfield Foods — | 977,974 | ||||||||||||
| 6,451 | Tootsie Roll Industries q | 159,791 | ||||||||||||
| 5,796 | Universal q | 248,185 | ||||||||||||
Total Consumer Staples | 11,891,456 | |||||||||||||
Energy – 5.9% | ||||||||||||||
| 55,242 | Arch Coal | 1,006,509 | ||||||||||||
| 14,645 | Atwood Oceanics — | 625,927 | ||||||||||||
| 12,326 | Bill Barrett — q | 512,762 | ||||||||||||
| 5,165 | CARBO Ceramics q | 701,665 | ||||||||||||
| 22,184 | Cimarex Energy q | 1,419,776 | ||||||||||||
| 12,352 | Comstock Resources — q | 225,301 | ||||||||||||
| Nuveen Investments | 33 |
Portfolio of Investments
Nuveen Mid Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Energy (continued) | ||||||||||||||
| 20,687 | Dresser-Rand Group — q | $ | 1,001,251 | |||||||||||
| 8,932 | Dril-Quip — q | 581,473 | ||||||||||||
| 16,575 | Exterran Holdings — q | 157,463 | ||||||||||||
| 29,650 | Forest Oil — | 345,719 | ||||||||||||
| 27,467 | Helix Energy Solutions Group — | 496,054 | ||||||||||||
| 54,118 | HollyFrontier | 1,660,881 | ||||||||||||
| 16,368 | Northern Oil & Gas — q | 395,615 | ||||||||||||
| 28,137 | Oceaneering International q | 1,176,971 | ||||||||||||
| 13,307 | Oil States International — | 926,300 | ||||||||||||
| 23,677 | Patriot Coal — q | 297,383 | ||||||||||||
| 40,354 | Patterson-UTI Energy | 819,993 | ||||||||||||
| 36,554 | Plains Exploration & Production — | 1,151,451 | ||||||||||||
| 31,054 | Quicksilver Resources — q | 239,116 | ||||||||||||
| 16,524 | SM Energy | 1,370,005 | ||||||||||||
| 32,342 | Southern Union | 1,359,334 | ||||||||||||
| 20,694 | Superior Energy Services — q | 581,915 | ||||||||||||
| 13,453 | Tidewater q | 662,291 | ||||||||||||
| 10,738 | Unit — | 526,806 | ||||||||||||
Total Energy | 18,241,961 | |||||||||||||
Financials – 17.6% | ||||||||||||||
| 13,496 | Affiliated Managers Group — | 1,249,865 | ||||||||||||
| 16,057 | Alexandria Real Estate Equities - REIT q | 1,061,207 | ||||||||||||
| 18,026 | American Campus Communities - REIT q | 701,752 | ||||||||||||
| 20,327 | American Financial Group | 728,316 | ||||||||||||
| 50,289 | Apollo Investment | 416,393 | ||||||||||||
| 29,174 | Arthur J. Gallagher | 901,477 | ||||||||||||
| 18,365 | Aspen Insurance Holdings q | 486,489 | ||||||||||||
| 44,954 | Associated Banc q | 501,237 | ||||||||||||
| 21,717 | Astoria Financial q | 180,251 | ||||||||||||
| 18,831 | BancorpSouth q | 183,979 | ||||||||||||
| 12,215 | Bank of Hawaii q | 515,839 | ||||||||||||
| 19,376 | BRE Properties - REIT q | 971,125 | ||||||||||||
| 29,906 | Brown & Brown | 660,325 | ||||||||||||
| 18,453 | Camden Property Trust - REIT q | 1,118,990 | ||||||||||||
| 20,387 | Cathay General Bancorp q | 285,214 | ||||||||||||
| 12,136 | City National q | 514,809 | ||||||||||||
| 19,693 | Commerce Bancshares | 764,088 | ||||||||||||
| 18,644 | Corporate Office Properties Trust - REIT q | 452,117 | ||||||||||||
| 26,401 | Cousins Properties - REIT q | 173,191 | ||||||||||||
| 15,878 | Cullen/Frost Bankers q | 778,657 | ||||||||||||
| 65,536 | Duke Realty - REIT q | 804,782 | ||||||||||||
| 38,607 | East West Bancorp | 751,678 | ||||||||||||
| 30,418 | Eaton Vance q | 799,689 | ||||||||||||
| 15,457 | Equity One - REIT | 265,088 | ||||||||||||
| 8,483 | Essex Property Trust - REIT q | 1,211,033 | ||||||||||||
| 34 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 13,905 | Everest Re Group | $ | 1,250,338 | |||||||||||
| 16,282 | Federal Realty Investment Trust - REIT q | 1,445,190 | ||||||||||||
| 57,941 | Fidelity National Financial, Class A | 894,609 | ||||||||||||
| 27,312 | First American Financial q | 327,744 | ||||||||||||
| 75,798 | First Niagara Financial Group q | 696,584 | ||||||||||||
| 28,320 | FirstMerit q | 396,764 | ||||||||||||
| 51,797 | Fulton Financial q | 488,964 | ||||||||||||
| 7,551 | Greenhill & Company q | 285,277 | ||||||||||||
| 21,958 | Hancock Holding q | 665,327 | ||||||||||||
| 11,787 | Hanover Insurance Group | 449,792 | ||||||||||||
| 28,926 | HCC Insurance Holdings q | 769,721 | ||||||||||||
| 18,769 | Highwoods Properties - REIT q | 581,464 | ||||||||||||
| 12,189 | Home Properties - REIT q | 717,932 | ||||||||||||
| 32,007 | Hospitality Properties Trust - REIT | 769,128 | ||||||||||||
| 13,830 | International Bancshares q | 250,600 | ||||||||||||
| 38,258 | Jefferies Group | 507,301 | ||||||||||||
| 11,261 | Jones Lang LaSalle | 727,686 | ||||||||||||
| 13,013 | Kemper | 349,920 | ||||||||||||
| 29,986 | Liberty Property Trust - REIT q | 959,552 | ||||||||||||
| 34,200 | Macerich - REIT q | 1,701,792 | ||||||||||||
| 22,568 | Mack-Cali Realty - REIT q | 633,258 | ||||||||||||
| 9,381 | Mercury General | 406,197 | ||||||||||||
| 31,232 | MSCI, Class A — q | 1,042,836 | ||||||||||||
| 113,406 | New York Community Bancorp q | 1,509,434 | ||||||||||||
| 66,206 | Old Republic International q | 585,261 | ||||||||||||
| 26,729 | OMEGA Healthcare Investors - REIT q | 474,707 | ||||||||||||
| 10,419 | Potlatch - REIT | 338,409 | ||||||||||||
| 12,156 | Prosperity Bancshares q | 467,884 | ||||||||||||
| 21,961 | Protective Life | 408,475 | ||||||||||||
| 26,589 | Raymond James Financial | 807,508 | ||||||||||||
| 31,583 | Rayonier - REIT | 1,317,959 | ||||||||||||
| 32,891 | Realty Income - REIT q | 1,098,888 | ||||||||||||
| 23,309 | Regency Centers - REIT q | 954,737 | ||||||||||||
| 19,676 | Reinsurance Group of America | 1,027,677 | ||||||||||||
| 38,815 | SEI Investments | 628,415 | ||||||||||||
| 41,236 | Senior Housing Properties Trust - REIT q | 925,336 | ||||||||||||
| 22,158 | SL Green Realty - REIT q | 1,528,680 | ||||||||||||
| 11,567 | StanCorp Financial Group | 392,584 | ||||||||||||
| 11,206 | SVB Financial Group — q | 514,804 | ||||||||||||
| 205,064 | Synovus Financial q | 307,596 | ||||||||||||
| 15,009 | Taubman Centers - REIT | 919,001 | ||||||||||||
| 41,389 | TCF Financial q | 440,379 | ||||||||||||
| 16,200 | Transatlantic Holdings | 843,048 | ||||||||||||
| 16,624 | Trustmark q | 368,055 | ||||||||||||
| 56,798 | UDR - REIT | 1,415,974 | ||||||||||||
| Nuveen Investments | 35 |
Portfolio of Investments
Nuveen Mid Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 44,073 | Valley National Bancorp q | $ | 528,876 | |||||||||||
| 29,427 | W.R. Berkley q | 1,024,354 | ||||||||||||
| 22,315 | Waddell & Reed Financial, Class A q | 618,795 | ||||||||||||
| 27,852 | Washington Federal | 380,180 | ||||||||||||
| 19,019 | Webster Financial q | 373,533 | ||||||||||||
| 31,328 | Weingarten Realty Investors - REIT q | 727,123 | ||||||||||||
| 7,395 | Westamerica Bancorporation q | 331,444 | ||||||||||||
Total Financials | 54,054,683 | |||||||||||||
Health Care – 10.0% | ||||||||||||||
| 48,730 | Allscripts Healthcare Solutions — | 933,179 | ||||||||||||
| 12,871 | AMERIGROUP — | 716,014 | ||||||||||||
| 5,092 | Bio-Rad Laboratories, Class A — | 506,909 | ||||||||||||
| 12,929 | Catalyst Health Solutions — q | 710,707 | ||||||||||||
| 13,314 | Charles River Laboratories International — | 429,776 | ||||||||||||
| 24,165 | Community Health Systems — | 422,404 | ||||||||||||
| 12,375 | Cooper | 857,587 | ||||||||||||
| 15,749 | Covance — | 798,947 | ||||||||||||
| 29,684 | Endo Pharmaceuticals Holdings — | 959,090 | ||||||||||||
| 12,491 | Gen-Probe — | 750,709 | ||||||||||||
| 65,877 | Health Management Associates, Class A — | 577,083 | ||||||||||||
| 23,493 | Health Net — | 652,870 | ||||||||||||
| 23,960 | Henry Schein — q | 1,660,907 | ||||||||||||
| 16,373 | Hill-Rom Holdings | 551,279 | ||||||||||||
| 67,960 | Hologic — | 1,095,515 | ||||||||||||
| 14,737 | IDEXX Laboratories — q | 1,060,917 | ||||||||||||
| 16,151 | Kinetic Concepts — | 1,104,567 | ||||||||||||
| 13,481 | LifePoint Hospitals — | 521,175 | ||||||||||||
| 23,979 | Lincare Holdings q | 564,705 | ||||||||||||
| 15,538 | Masimo q | 321,326 | ||||||||||||
| 16,426 | Medicis Pharmaceutical, Class A q | 628,952 | ||||||||||||
| 12,643 | MEDNAX — | 831,909 | ||||||||||||
| 8,170 | Mettler-Toledo International — | 1,254,912 | ||||||||||||
| 30,024 | Omnicare q | 895,316 | ||||||||||||
| 16,531 | Owens & Minor q | 494,608 | ||||||||||||
| 24,059 | Perrigo q | 2,172,047 | ||||||||||||
| 29,528 | Pharmaceutical Product Development | 974,129 | ||||||||||||
| 39,285 | Residential Medical — q | 1,111,765 | ||||||||||||
| 15,365 | STERIS q | 476,008 | ||||||||||||
| 9,476 | Techne q | 651,949 | ||||||||||||
| 10,547 | Teleflex | 631,343 | ||||||||||||
| 15,489 | Thoratec — q | 565,503 | ||||||||||||
| 13,455 | United Therapeutics — | 588,387 | ||||||||||||
| 25,349 | Universal Health Services | 1,013,200 | ||||||||||||
| 22,450 | VCA Antech — | 456,184 | ||||||||||||
| 53,948 | Vertex Pharmaceuticals — q | 2,135,801 | ||||||||||||
| 11,075 | WellCare Health Plans — | 542,786 | ||||||||||||
Total Health Care | 30,620,465 | |||||||||||||
| 36 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Industrials – 14.0% | ||||||||||||||
| 11,235 | Acuity Brands q | $ | 520,181 | |||||||||||
| 30,967 | AECOM Technology — | 647,830 | ||||||||||||
| 25,011 | AGCO — | 1,096,232 | ||||||||||||
| 9,282 | Alaska Air Group — q | 617,531 | ||||||||||||
| 10,809 | Alexander & Baldwin | 448,682 | ||||||||||||
| 8,541 | Alliant Techsystems | 496,061 | ||||||||||||
| 41,864 | AMETEK | 1,654,465 | ||||||||||||
| 26,744 | BE Aerospace — | 1,009,051 | ||||||||||||
| 12,131 | Brinks q | 337,120 | ||||||||||||
| 15,971 | Carlisle Companies | 666,310 | ||||||||||||
| 12,232 | Clean Harbors — q | 712,759 | ||||||||||||
| 14,407 | Con-way | 424,574 | ||||||||||||
| 14,699 | Copart — | 640,141 | ||||||||||||
| 8,959 | Corporate Executive Board | 327,810 | ||||||||||||
| 27,786 | Corrections Corporation of America — | 617,683 | ||||||||||||
| 12,643 | Crane | 557,683 | ||||||||||||
| 13,221 | Deluxe | 312,280 | ||||||||||||
| 19,364 | Donaldson | 1,240,264 | ||||||||||||
| 7,936 | Esterline Technologies — | 443,622 | ||||||||||||
| 40,057 | Fortune Brands Home & Security — | 582,028 | ||||||||||||
| 11,021 | FTI Consulting — q | 434,338 | ||||||||||||
| 13,566 | Gardner Denver | 1,049,059 | ||||||||||||
| 11,999 | GATX | 455,722 | ||||||||||||
| 13,525 | General Cable — | 379,241 | ||||||||||||
| 15,775 | Graco | 677,379 | ||||||||||||
| 9,023 | Granite Construction q | 203,018 | ||||||||||||
| 20,925 | Harsco | 482,321 | ||||||||||||
| 15,071 | Herman Miller | 311,216 | ||||||||||||
| 11,609 | HNI q | 279,196 | ||||||||||||
| 15,461 | Hubbell, Class B | 924,413 | ||||||||||||
| 12,652 | Huntington Ingalls Industries — q | 373,234 | ||||||||||||
| 21,454 | IDEX | 760,544 | ||||||||||||
| 23,995 | J.B. Hunt Transport Services | 1,015,228 | ||||||||||||
| 52,915 | JetBlue Airways — q | 237,059 | ||||||||||||
| 28,470 | Kansas City Southern — q | 1,798,450 | ||||||||||||
| 39,092 | KBR | 1,091,058 | ||||||||||||
| 21,072 | Kennametal q | 819,490 | ||||||||||||
| 14,427 | Kirby — | 887,838 | ||||||||||||
| 12,206 | Korn/Ferry International — | 194,930 | ||||||||||||
| 12,371 | Landstar System | 552,118 | ||||||||||||
| 13,772 | Lennox International | 443,321 | ||||||||||||
| 21,830 | Lincoln Electric Holdings | 794,612 | ||||||||||||
| 21,240 | Manpower | 916,294 | ||||||||||||
| 7,976 | Mine Safety Appliances | 267,595 | ||||||||||||
| 12,105 | MSC Industrial Direct, Class A q | 823,261 | ||||||||||||
| Nuveen Investments | 37 |
Portfolio of Investments
Nuveen Mid Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 17,174 | Nordson | $ | 796,358 | |||||||||||
| 23,640 | Oshkosh — q | 493,130 | ||||||||||||
| 24,775 | Pentair q | 890,661 | ||||||||||||
| 10,765 | Regal-Beloit | 571,944 | ||||||||||||
| 16,321 | Rollins | 355,471 | ||||||||||||
| 18,730 | Shaw Group — | 435,660 | ||||||||||||
| 13,250 | SPX | 723,583 | ||||||||||||
| 28,415 | Terex — q | 472,826 | ||||||||||||
| 13,622 | Thomas & Betts — | 676,877 | ||||||||||||
| 21,883 | Timken | 921,712 | ||||||||||||
| 13,639 | Towers Watson, Class A | 896,082 | ||||||||||||
| 20,783 | Trinity Industries | 566,752 | ||||||||||||
| 9,919 | Triumph Group q | 576,294 | ||||||||||||
| 16,239 | United Rentals — q | 380,155 | ||||||||||||
| 20,638 | URS — | 736,777 | ||||||||||||
| 26,642 | UTi Worldwide | 389,240 | ||||||||||||
| 5,825 | Valmont Industries | 499,494 | ||||||||||||
| 29,305 | Waste Connections | 997,835 | ||||||||||||
| 7,053 | Watsco q | 434,888 | ||||||||||||
| 11,435 | Werner Enterprises q | 271,010 | ||||||||||||
| 12,510 | Westinghouse Air Brake Technologies | 840,422 | ||||||||||||
| 15,521 | Woodward Governor | 525,851 | ||||||||||||
Total Industrials | 42,976,264 | |||||||||||||
Information Technology – 14.8% | ||||||||||||||
| 8,376 | ACI Worldwide — q | 256,892 | ||||||||||||
| 21,136 | Acxiom — | 278,784 | ||||||||||||
| 16,705 | ADTRAN q | 561,288 | ||||||||||||
| 8,540 | Advent Software — q | 233,996 | ||||||||||||
| 13,200 | Alliance Data Systems — q | 1,352,208 | ||||||||||||
| 23,912 | ANSYS — q | 1,299,856 | ||||||||||||
| 27,730 | AOL — q | 391,548 | ||||||||||||
| 29,793 | Arrow Electronics — | 1,074,038 | ||||||||||||
| 120,695 | Atmel — | 1,274,539 | ||||||||||||
| 39,616 | Avnet — | 1,200,761 | ||||||||||||
| 31,547 | Broadridge Financial Solutions | 701,921 | ||||||||||||
| 69,766 | Cadence Design Systems — q | 772,310 | ||||||||||||
| 25,118 | Ciena — q | 331,055 | ||||||||||||
| 12,038 | Concur Technologies — q | 560,008 | ||||||||||||
| 31,112 | Convergys — | 332,898 | ||||||||||||
| 27,587 | CoreLogic — | 335,734 | ||||||||||||
| 29,997 | Cree — q | 799,120 | ||||||||||||
| 41,576 | Cypress Semiconductor q | 794,517 | ||||||||||||
| 16,565 | Diebold | 534,718 | ||||||||||||
| 10,254 | Digital River — | 187,956 | ||||||||||||
| 9,170 | DST Systems q | 460,242 | ||||||||||||
| 38 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 12,194 | Equinix — | $ | 1,170,746 | |||||||||||
| 11,882 | FactSet Research Systems q | 1,181,308 | ||||||||||||
| 10,086 | Fair Isaac | 275,852 | ||||||||||||
| 33,102 | Fairchild Semiconductor International — q | 495,537 | ||||||||||||
| 25,026 | Gartner, Class A — | 964,002 | ||||||||||||
| 20,827 | Global Payments | 956,376 | ||||||||||||
| 27,657 | Informatica — | 1,258,393 | ||||||||||||
| 40,267 | Ingram Micro, Class A — | 719,974 | ||||||||||||
| 37,896 | Integrated Device Technology — q | 230,408 | ||||||||||||
| 17,565 | International Rectifier — q | 426,654 | ||||||||||||
| 32,633 | Intersil, Class A q | 390,617 | ||||||||||||
| 10,551 | Itron — | 388,171 | ||||||||||||
| 22,398 | Jack Henry & Associates q | 725,919 | ||||||||||||
| 32,091 | Lam Research — | 1,379,592 | ||||||||||||
| 22,372 | Lender Processing Services q | 392,629 | ||||||||||||
| 5,701 | ManTech International | 200,276 | ||||||||||||
| 27,611 | Mentor Graphics — | 313,661 | ||||||||||||
| 20,948 | MICROS Systems — | 1,031,061 | ||||||||||||
| 23,981 | National Instruments | 640,533 | ||||||||||||
| 40,781 | NCR — | 776,470 | ||||||||||||
| 18,578 | NeuStar, Class A — q | 590,595 | ||||||||||||
| 30,447 | Parametric Technology — | 634,211 | ||||||||||||
| 12,303 | Plantronics q | 411,043 | ||||||||||||
| 45,855 | Polycom — q | 757,983 | ||||||||||||
| 26,947 | QLogic — | 376,450 | ||||||||||||
| 15,287 | Quest Software — q | 268,898 | ||||||||||||
| 26,710 | Rackspace Hosting — q | 1,105,527 | ||||||||||||
| 71,649 | RF Micro Devices — q | 525,904 | ||||||||||||
| 40,289 | Riverbed Technology — q | 1,111,171 | ||||||||||||
| 28,574 | Rovi — q | 1,415,556 | ||||||||||||
| 16,948 | Semtech — | 413,870 | ||||||||||||
| 11,474 | Silicon Laboratories — q | 490,513 | ||||||||||||
| 48,293 | Skyworks Solutions — | 956,684 | ||||||||||||
| 18,367 | Solera Holdings | 1,003,389 | ||||||||||||
| 36,780 | Synopsys — q | 986,072 | ||||||||||||
| 11,737 | Tech Data — | 577,226 | ||||||||||||
| 42,179 | TIBCO Software — q | 1,218,551 | ||||||||||||
| 31,837 | Trimble Navigation — | 1,286,533 | ||||||||||||
| 20,978 | ValueClick — | 369,213 | ||||||||||||
| 19,551 | Varian Semiconductor Equipment Associates — | 1,227,216 | ||||||||||||
| 26,892 | VeriFone Systems — q | 1,135,111 | ||||||||||||
| 41,607 | Vishay Intertechnology — q | 447,275 | ||||||||||||
| 13,701 | Zebra Technologies, Class A — | 489,674 | ||||||||||||
Total Information Technology | 45,451,233 | |||||||||||||
| Nuveen Investments | 39 |
Portfolio of Investments
Nuveen Mid Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Materials – 5.9% | ||||||||||||||
| 23,785 | Albemarle | $ | 1,267,503 | |||||||||||
| 17,275 | AptarGroup | 828,682 | ||||||||||||
| 20,227 | Ashland | 1,071,222 | ||||||||||||
| 16,957 | Cabot Microelectronics | 511,762 | ||||||||||||
| 11,450 | Carpenter Technology q | 649,444 | ||||||||||||
| 29,893 | Commercial Metals | 371,570 | ||||||||||||
| 8,530 | Compass Minerals International q | 648,877 | ||||||||||||
| 12,856 | Cytec Industries | 574,277 | ||||||||||||
| 10,391 | Domtar | 851,127 | ||||||||||||
| 7,848 | Greif, Class A | 351,433 | ||||||||||||
| 13,647 | Intrepid Potash — q | 379,796 | ||||||||||||
| 34,260 | Louisiana-Pacific — | 227,829 | ||||||||||||
| 11,843 | Martin Marietta Materials q | 854,709 | ||||||||||||
| 4,687 | Minerals Technologies | 257,035 | ||||||||||||
| 2,834 | NewMarket q | 550,193 | ||||||||||||
| 20,788 | Olin | 392,062 | ||||||||||||
| 25,854 | Packaging Corporation of America | 674,272 | ||||||||||||
| 19,413 | Reliance Steel & Aluminum q | 857,860 | ||||||||||||
| 18,461 | Rock-Tenn, Class A | 1,092,707 | ||||||||||||
| 33,994 | RPM International | 763,845 | ||||||||||||
| 11,570 | Scotts Miracle-Gro, Class A q | 561,261 | ||||||||||||
| 12,907 | Sensient Technologies | 477,043 | ||||||||||||
| 12,911 | Silgan Holdings | 484,679 | ||||||||||||
| 25,899 | Sonoco Products | 812,970 | ||||||||||||
| 56,692 | Steel Dynamics | 708,083 | ||||||||||||
| 28,168 | Temple-Inland | 896,024 | ||||||||||||
| 24,235 | Valspar | 845,074 | ||||||||||||
| 14,007 | Worthington Industries q | 242,041 | ||||||||||||
Total Materials | 18,203,380 | |||||||||||||
Telecommunication Services – 0.4% | ||||||||||||||
| 23,841 | Telephone & Data Systems q | 552,634 | ||||||||||||
| 39,072 | tw telecom — | 722,832 | ||||||||||||
Total Telecommunication Services | 1,275,466 | |||||||||||||
Utilities – 5.9% | ||||||||||||||
| 20,341 | AGL Resources | 853,102 | ||||||||||||
| 28,773 | Alliant Energy | 1,173,363 | ||||||||||||
| 35,883 | Aqua America q | 796,244 | ||||||||||||
| 23,406 | Atmos Energy | 803,294 | ||||||||||||
| 10,225 | Black Hills q | 344,685 | ||||||||||||
| 15,830 | Cleco q | 583,652 | ||||||||||||
| 30,579 | DPL | 928,073 | ||||||||||||
| 18,686 | Energen | 916,735 | ||||||||||||
| 35,260 | Great Plains Energy | 731,292 | ||||||||||||
| 24,856 | Hawaiian Electric Industries q | 629,602 | ||||||||||||
| 12,888 | IDACORP | 520,417 | ||||||||||||
| 40 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Utilities (continued) | ||||||||||||||
| 48,945 | MDU Resources Group | $ | 1,008,756 | |||||||||||
| 21,447 | National Fuel Gas | 1,314,487 | ||||||||||||
| 26,855 | NSTAR | 1,210,892 | ||||||||||||
| 61,181 | NV Energy | 981,343 | ||||||||||||
| 25,401 | OGE Energy | 1,314,248 | ||||||||||||
| 22,471 | PNM Resources | 404,029 | ||||||||||||
| 44,956 | Questar | 866,302 | ||||||||||||
| 28,679 | UGI | 822,227 | ||||||||||||
| 21,202 | Vectren | 601,713 | ||||||||||||
| 30,025 | Westar Energy q | 818,481 | ||||||||||||
| 13,301 | WGL Holdings | 569,416 | ||||||||||||
Total Utilities | 18,192,353 | |||||||||||||
Total Common Stocks (cost $248,438,392) | 280,842,621 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 31.3% | ||||||||||||||
| 96,166,674 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 96,166,674 | |||||||||||
Total Investments Purchased With Collateral From Securities Lending (cost $96,166,674) | 96,166,674 | |||||||||||||
| Shares/ Principal Amount (000) | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 8.7% | ||||||||||||||
Money Market Funds – 8.0% | ||||||||||||||
| 24,620,291 | First American Treasury Obligations Fund, Class Z, 0.000% W | $ | 24,620,291 | |||||||||||
U.S. Treasury Obligations – 0.7% | ||||||||||||||
U.S. Treasury Bill | ||||||||||||||
| $ | 2,150 | 0.022%, 03/01/2012 ¨ | 2,149,841 | |||||||||||
Total Short-Term Investments (cost $26,770,146) | 26,770,132 | |||||||||||||
Total Investments (cost $371,375,212) – 131.4% | 403,779,427 | |||||||||||||
Other Assets Less Liabilities – (31.4)% ¯ | (96,387,390) | |||||||||||||
Net Assets – 100.0% | $ | 307,392,037 | ||||||||||||
Investments in Derivatives at October 31, 2011:
Futures Contracts outstanding:
| Type | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
S&P Mid Cap 400 E-Mini Index | Long | 293 | 12/11 | $ | 25,962,730 | $ | 1,506,270 | |||||||||||||
| Nuveen Investments | 41 |
Portfolio of Investments
Nuveen Mid Cap Index Fund (continued)
October 31, 2011
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| q | Investment, or a portion of investment, is out on loan for securities lending. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
 | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, Investment categorized as Level 3. See Notes to Financial Statements Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ¯ | Other Assets Less Liabilities includes the net Unrealized Appreciation (Depreciation) of derivative instruments as noted within Investments in Derivatives at October 31 2011. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| 42 | Nuveen Investments |
Portfolio of Investments
Nuveen Small Cap Index Fund
(formerly known as First American Small Cap Index Fund)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
COMMON STOCKS – 90.7% | ||||||||||||||
Consumer Discretionary – 12.2% | ||||||||||||||
| 1,466 | 1-800-Flowers.com, Class A — | $ | 4,178 | |||||||||||
| 2,793 | 99 Cents Only Stores — | 60,887 | ||||||||||||
| 4,812 | Aeropostale — q | 65,732 | ||||||||||||
| 1,504 | AFC Enterprises — | 20,620 | ||||||||||||
| 1,068 | AH Belo, Class A | 5,340 | ||||||||||||
| 1,074 | Ambassadors Group | 5,327 | ||||||||||||
| 3,981 | American Axle & Manufacturing Holdings — | 38,576 | ||||||||||||
| 2,372 | American Greetings, Class A q | 37,976 | ||||||||||||
| 1,067 | American Public Education — q | 38,209 | ||||||||||||
| 530 | America’s Car-Mart — q | 17,691 | ||||||||||||
| 1,317 | Amerigon — q | 20,203 | ||||||||||||
| 1,921 | Ameristar Casinos q | 35,538 | ||||||||||||
| 3,103 | Ann — q | 82,664 | ||||||||||||
| 1,617 | Arbitron | 64,243 | ||||||||||||
| 720 | Arctic Cat — q | 14,623 | ||||||||||||
| 1,723 | Asbury Automotive Group — | 32,134 | ||||||||||||
| 3,745 | Ascena Retail Group — q | 108,231 | ||||||||||||
| 859 | Ascent Media — | 39,076 | ||||||||||||
| 1,218 | Audiovox — | 8,660 | ||||||||||||
| 1,732 | Barnes & Noble q | 21,252 | ||||||||||||
| 7,218 | Beazer Homes USA — q | 15,519 | ||||||||||||
| 2,254 | Bebe Stores | 16,184 | ||||||||||||
| 5,520 | Belo, Class A — | 34,997 | ||||||||||||
| 771 | Benihana — | 7,432 | ||||||||||||
| 1,341 | Big 5 Sporting Goods | 10,366 | ||||||||||||
| 71 | Biglari Holdings — | 24,504 | ||||||||||||
| 1,433 | BJ’s Restaurants — q | 75,849 | ||||||||||||
| 766 | Black Diamond — | 6,611 | ||||||||||||
| 766 | Blue Nile — q | 34,570 | ||||||||||||
| 301 | Blyth | 16,805 | ||||||||||||
| 1,754 | Bob Evans Farms | 57,707 | ||||||||||||
| 681 | Body Central — | 14,301 | ||||||||||||
| 715 | Bon-Ton Stores q | 3,775 | ||||||||||||
| 3,265 | Boyd Gaming — q | 21,157 | ||||||||||||
| 1,148 | Bravo Brio Restaurant Group — | 22,306 | ||||||||||||
| 1,157 | Bridgepoint Education — q | 25,072 | ||||||||||||
| 2,602 | Brown Shoe q | 23,184 | ||||||||||||
| 5,308 | Brunswick q | 93,739 | ||||||||||||
| 1,605 | Buckle q | 71,519 | ||||||||||||
| 1,093 | Buffalo Wild Wings — q | 72,378 | ||||||||||||
| 963 | Build-A-Bear Workshop — | 6,308 | ||||||||||||
| 2,579 | Cabela’s — q | 64,269 | ||||||||||||
| 3,854 | Callaway Golf q | 22,392 | ||||||||||||
| Nuveen Investments | 43 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 984 | Cambium Learning Group — | $ | 3,247 | |||||||||||
| 938 | Capella Education — | 32,652 | ||||||||||||
| 748 | Caribou Coffee — q | 10,210 | ||||||||||||
| 750 | Carrols Restaurant Group — | 7,005 | ||||||||||||
| 2,931 | Carters — q | 111,642 | ||||||||||||
| 2,473 | Casual Male Retail Group — | 10,263 | ||||||||||||
| 1,601 | Cato, Class A | 41,034 | ||||||||||||
| 401 | Cavco Industries — | 18,057 | ||||||||||||
| 1,183 | CEC Entertainment — | 37,406 | ||||||||||||
| 2,183 | Central European Media Enterprises, Class A — q | 24,100 | ||||||||||||
| 6,929 | Charming Shoppes — q | 24,044 | ||||||||||||
| 3,442 | Cheesecake Factory — q | 96,342 | ||||||||||||
| 507 | Cherokee | 6,662 | ||||||||||||
| 1,509 | Children’s Place Retail Stores — q | 70,848 | ||||||||||||
| 2,187 | Christopher & Banks | 7,283 | ||||||||||||
| 738 | Churchill Downs | 35,476 | ||||||||||||
| 5,540 | Cinemark Holdings q | 114,512 | ||||||||||||
| 896 | Citi Trends — | 11,101 | ||||||||||||
| 1,869 | Coinstar — q | 89,226 | ||||||||||||
| 3,624 | Coldwater Creek — | 3,805 | ||||||||||||
| 3,669 | Collective Brands — q | 53,604 | ||||||||||||
| 723 | Columbia Sportswear q | 38,854 | ||||||||||||
| 851 | Conn’s — | 7,838 | ||||||||||||
| 3,702 | Cooper Tire & Rubber | 53,050 | ||||||||||||
| 669 | Core-Mark Holding — | 22,405 | ||||||||||||
| 4,646 | Corinthian Colleges — q | 8,874 | ||||||||||||
| 1,099 | Cost Plus — | 8,671 | ||||||||||||
| 1,369 | Cracker Barrel Old Country Store | 58,032 | ||||||||||||
| 5,098 | Crocs — | 90,082 | ||||||||||||
| 2,019 | Crown Media Holdings, Class A — q | 3,190 | ||||||||||||
| 484 | CSS Industries | 10,203 | ||||||||||||
| 2,244 | Cumulus Media, Class A — q | 6,754 | ||||||||||||
| 9,036 | Dana Holding — q | 127,770 | ||||||||||||
| 410 | Delta Apparel — | 7,384 | ||||||||||||
| 5,888 | Denny’s — | 21,197 | ||||||||||||
| 574 | Destination Maternity — | 9,511 | ||||||||||||
| 922 | DineEquity — q | 43,297 | ||||||||||||
| 1,827 | Dolan Media — | 15,986 | ||||||||||||
| 3,681 | Domino’s Pizza — q | 117,902 | ||||||||||||
| 692 | Dorman Products — | 26,372 | ||||||||||||
| 1,146 | Drew Industries — q | 27,538 | ||||||||||||
| 1,971 | E.W. Scripps, Class A — q | 16,438 | ||||||||||||
| 15,944 | Eastman Kodak q | 17,698 | ||||||||||||
| 331 | Einstein Noah Restaurant Group — | 4,872 | ||||||||||||
| 1,396 | Entercom Communications — | 9,158 | ||||||||||||
| 44 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 5,784 | Entravision Communications — | $ | 9,544 | |||||||||||
| 1,439 | Ethan Allen Interiors q | 28,492 | ||||||||||||
| 4,738 | Exide Technologies — | 21,321 | ||||||||||||
| 3,294 | Express q | 74,411 | ||||||||||||
| 3,089 | Finish Line, Class A | 62,089 | ||||||||||||
| 510 | Fisher Communications — | 14,810 | ||||||||||||
| 544 | Francesca’s Holdings — q | 13,964 | ||||||||||||
| 2,274 | Fred’s q | 27,720 | ||||||||||||
| 992 | Fuel Systems Solutions — | 23,153 | ||||||||||||
| 2,621 | Furniture Brands International — | 5,006 | ||||||||||||
| 2,124 | Gaylord Entertainment — q | 49,680 | ||||||||||||
| 254 | Geeknet — | 4,945 | ||||||||||||
| 1,412 | Genesco — | 83,223 | ||||||||||||
| 984 | G-iii Apparel Group — | 27,739 | ||||||||||||
| 660 | Global Sources — | 4,811 | ||||||||||||
| 1,361 | GNC Holdings — q | 33,685 | ||||||||||||
| 309 | Gordmans Stores — | 4,320 | ||||||||||||
| 1,838 | Grand Canyon Education — | 29,978 | ||||||||||||
| 4,695 | Gray Television | 8,920 | ||||||||||||
| 1,431 | Group 1 Automotive q | 65,196 | ||||||||||||
| 2,561 | Harte-Hanks q | 22,486 | ||||||||||||
| 1,044 | Haverty Furniture — | 12,131 | ||||||||||||
| 1,840 | Helen of Troy — q | 53,231 | ||||||||||||
| 1,047 | hhgregg — q | 13,349 | ||||||||||||
| 1,633 | Hibbett Sports — q | 67,263 | ||||||||||||
| 3,737 | Hillenbrand — | 78,888 | ||||||||||||
| 2,589 | Hot Topic | 19,573 | ||||||||||||
| 3,622 | Hovnanian Enterprises, Class A — q | 5,216 | ||||||||||||
| 2,383 | HSN — | 85,002 | ||||||||||||
| 4,349 | Iconix Brand Group — | 78,065 | ||||||||||||
| 1,187 | Interclick — | 8,784 | ||||||||||||
| 1,755 | International Speedway, Class A | 41,874 | ||||||||||||
| 2,413 | Interval Leisure Group — | 33,324 | ||||||||||||
| 1,417 | iRobot — q | 47,980 | ||||||||||||
| 1,180 | Isle of Capri Casinos — | 6,419 | ||||||||||||
| 2,875 | Jack in the Box — | 59,168 | ||||||||||||
| 1,621 | JAKKS Pacific — | 30,750 | ||||||||||||
| 3,868 | Jamba — q | 6,576 | ||||||||||||
| 258 | Johnson Outdoors — | 4,796 | ||||||||||||
| 5,213 | Jones Group | 58,229 | ||||||||||||
| 1,647 | Jos. A. Bank Clothiers — q | 88,016 | ||||||||||||
| 2,576 | Journal Communications, Class A | 9,943 | ||||||||||||
| 1,550 | K12 — q | 54,327 | ||||||||||||
| 4,587 | KB HOME q | 31,971 | ||||||||||||
| 437 | Kenneth Cole Productions | 4,702 | ||||||||||||
| Nuveen Investments | 45 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 993 | Kirkland’s — q | $ | 11,161 | |||||||||||
| 1,812 | Knology — | 25,966 | ||||||||||||
| 3,554 | Krispy Kreme Doughnuts — q | 25,091 | ||||||||||||
| 1,561 | K-Swiss, Class A q | 7,024 | ||||||||||||
| 3,139 | La-Z-Boy | 31,892 | ||||||||||||
| 2,471 | LeapFrog Enterprises — | 9,217 | ||||||||||||
| 1,147 | Libbey — q | 14,521 | ||||||||||||
| 2,521 | Life Time Fitness — q | 108,731 | ||||||||||||
| 549 | Lifetime Brands | 6,714 | ||||||||||||
| 1,706 | Lin TV, Class A — | 5,323 | ||||||||||||
| 1,347 | Lincoln Educational Services — | 12,594 | ||||||||||||
| 2,609 | Lions Gate Entertainment — | 21,446 | ||||||||||||
| 1,315 | Lithia Motors q | 27,050 | ||||||||||||
| 8,413 | Live Nation — q | 78,998 | ||||||||||||
| 5,638 | Liz Claiborne q | 45,160 | ||||||||||||
| 1,089 | Luby’s — | 5,260 | ||||||||||||
| 1,358 | Lumber Liquidators Holdings — q | 20,329 | ||||||||||||
| 2,235 | M.D.C. Holdings q | 50,064 | ||||||||||||
| 1,116 | M/I Homes — | 8,337 | ||||||||||||
| 698 | Mac-Gray — | 9,688 | ||||||||||||
| 1,396 | Maidenform Brands — | 34,314 | ||||||||||||
| 1,177 | Marcus | 14,030 | ||||||||||||
| 704 | Marine Products — | 3,893 | ||||||||||||
| 1,384 | MarineMax — q | 11,266 | ||||||||||||
| 1,615 | Martha Stewart Living — q | 6,250 | ||||||||||||
| 1,760 | Matthews International, Class A | 61,846 | ||||||||||||
| 3,537 | McClatchy, Class A — q | 5,553 | ||||||||||||
| 905 | McCormick & Schmick’s Seafood Restaurants — | 6,063 | ||||||||||||
| 1,495 | MDC Partners q | 25,176 | ||||||||||||
| 3,068 | Men’s Wearhouse | 94,740 | ||||||||||||
| 2,165 | Meredith q | 58,087 | ||||||||||||
| 1,667 | Meritage Homes — q | 29,589 | ||||||||||||
| 2,855 | Modine Manufacturing — | 30,177 | ||||||||||||
| 703 | Monarch Casino & Resort — | 7,234 | ||||||||||||
| 1,817 | Monro Muffler Brake q | 67,393 | ||||||||||||
| 1,523 | Morgans Hotel Group — | 9,915 | ||||||||||||
| 698 | Motorcar Parts of America — | 6,924 | ||||||||||||
| 1,031 | Movado Group | 17,249 | ||||||||||||
| 1,625 | Multimedia Games — | 10,741 | ||||||||||||
| 463 | National American Universal Holdings | 3,273 | ||||||||||||
| 3,287 | National Cinemedia | 39,773 | ||||||||||||
| 277 | National Presto Industries q | 26,454 | ||||||||||||
| 1,542 | New York & Company — | 4,117 | ||||||||||||
| 8,176 | New York Times, Class A — q | 62,301 | ||||||||||||
| 635 | Nexstar Broadcasting Group — | 5,779 | ||||||||||||
| 46 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 1,560 | NutriSystem q | $ | 19,282 | |||||||||||
| 1,081 | O’Charleys — | 6,713 | ||||||||||||
| 16,545 | Office Depot — | 37,888 | ||||||||||||
| 5,125 | OfficeMax — q | 26,240 | ||||||||||||
| 1,171 | Orbitz Worldwide — | 2,213 | ||||||||||||
| 5,641 | Orient-Express Hotels, Class A — q | 48,118 | ||||||||||||
| 886 | Outdoor Channel Holdings — | 6,618 | ||||||||||||
| 670 | Overstock.com — q | 5,561 | ||||||||||||
| 765 | Oxford Industries q | 30,217 | ||||||||||||
| 1,355 | P.F. Chang’s China Bistro q | 42,140 | ||||||||||||
| 2,744 | Pacific Sunwear of California — | 3,430 | ||||||||||||
| 1,141 | Papa John’s International — q | 38,520 | ||||||||||||
| 752 | Peet’s Coffee & Tea — q | 47,917 | ||||||||||||
| 2,661 | Penske Automotive Group q | 54,258 | ||||||||||||
| 3,089 | Pep Boys q | 35,524 | ||||||||||||
| 772 | Perry Ellis International — | 19,377 | ||||||||||||
| 1,252 | PetMed Express | 12,482 | ||||||||||||
| 6,342 | Pier 1 Imports — q | 79,338 | ||||||||||||
| 3,662 | Pinnacle Entertainment — | 41,454 | ||||||||||||
| 2,872 | Pool q | 83,920 | ||||||||||||
| 7,811 | Quiksilver — | 26,167 | ||||||||||||
| 502 | R.G. Barry — | 5,577 | ||||||||||||
| 577 | ReachLocal — q | 5,776 | ||||||||||||
| 811 | Red Lion Hotels — | 5,636 | ||||||||||||
| 773 | Red Robin Gourmet Burgers — | 19,379 | ||||||||||||
| 3,443 | Regis q | 56,327 | ||||||||||||
| 3,793 | Rent-A-Center | 129,531 | ||||||||||||
| 575 | Rentrak — | 7,855 | ||||||||||||
| 3,880 | Ruby Tuesday — | 32,553 | ||||||||||||
| 871 | Rue21 — q | 23,203 | ||||||||||||
| 2,098 | Ruth’s Hospitality Group — q | 9,903 | ||||||||||||
| 2,645 | Ryland Group q | 35,708 | ||||||||||||
| 208 | Saga Communications — | 7,800 | ||||||||||||
| 6,874 | Saks — q | 72,658 | ||||||||||||
| 1,583 | Scholastic q | 42,504 | ||||||||||||
| 3,468 | Scientific Games, Class A — | 30,137 | ||||||||||||
| 5,616 | Sealy — | 8,705 | ||||||||||||
| 3,314 | Select Comfort — q | 68,832 | ||||||||||||
| 309 | Shiloh Industries — | 2,441 | ||||||||||||
| 516 | Shoe Carnival — | 14,082 | ||||||||||||
| 3,271 | Shuffle Master — | 34,705 | ||||||||||||
| 1,776 | Shutterfly — q | 74,006 | ||||||||||||
| 3,007 | Sinclair Broadcast Group, Class A | 28,807 | ||||||||||||
| 2,412 | Six Flags Entertainment q | 86,591 | ||||||||||||
| 2,233 | Skechers U.S.A., Class A — q | 31,843 | ||||||||||||
| Nuveen Investments | 47 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 573 | Skullcandy — q | $ | 9,025 | |||||||||||
| 389 | Skyline | 2,630 | ||||||||||||
| 3,546 | Smith & Wesson — q | 10,496 | ||||||||||||
| 3,703 | Sonic — | 27,439 | ||||||||||||
| 2,366 | Sonic Automotive, Class A q | 34,709 | ||||||||||||
| 4,026 | Sotheby’s Holdings, Class A | 141,796 | ||||||||||||
| 1,978 | Spartan Motors | 9,692 | ||||||||||||
| 791 | Speedway Motorsports q | 10,283 | ||||||||||||
| 2,152 | Stage Stores | 33,636 | ||||||||||||
| 1,163 | Standard Motor Products | 18,085 | ||||||||||||
| 6,344 | Standard-Pacific — q | 19,286 | ||||||||||||
| 1,637 | Stein Mart | 11,868 | ||||||||||||
| 895 | Steiner Leisure — q | 43,121 | ||||||||||||
| 386 | Steinway Musical Instruments — | 9,727 | ||||||||||||
| 2,256 | Steven Madden — q | 83,246 | ||||||||||||
| 4,696 | Stewart Enterprises, Class A q | 30,242 | ||||||||||||
| 1,576 | Stoneridge — | 12,403 | ||||||||||||
| 729 | Strayer Education q | 62,118 | ||||||||||||
| 1,161 | Sturm, Ruger & Company | 35,202 | ||||||||||||
| 772 | Summer Infant — | 6,037 | ||||||||||||
| 1,578 | Summit Hotel Properties - REIT | 12,734 | ||||||||||||
| 1,409 | Superior Industries International q | 25,771 | ||||||||||||
| 375 | SYMS — | 2,929 | ||||||||||||
| 607 | Systemax — | 9,184 | ||||||||||||
| 4,166 | Talbots q | 10,957 | ||||||||||||
| 238 | Teavana Holdings — q | 5,441 | ||||||||||||
| 3,682 | Tenneco — q | 120,475 | ||||||||||||
| 3,693 | Texas Roadhouse — q | 52,921 | ||||||||||||
| 392 | Tower International — | 4,826 | ||||||||||||
| 1,186 | Town Sports International Holdings — | 10,294 | ||||||||||||
| 1,552 | True Religion Apparel — q | 52,644 | ||||||||||||
| 2,494 | Tuesday Morning — q | 9,028 | ||||||||||||
| 868 | U.S. Auto Parts Network — | 4,861 | ||||||||||||
| 835 | UniFirst | 43,712 | ||||||||||||
| 958 | Universal Electronics — | 17,809 | ||||||||||||
| 1,253 | Universal Technical Institute — | 17,893 | ||||||||||||
| 2,146 | Vail Resorts q | 95,626 | ||||||||||||
| 2,928 | Valassis Communications — q | 57,184 | ||||||||||||
| 78 | Value Line q | 984 | ||||||||||||
| 2,439 | ValueVision Media — | 8,000 | ||||||||||||
| 1,180 | Vera Bradley — q | 53,454 | ||||||||||||
| 1,479 | Vitamin Shoppe — q | 55,773 | ||||||||||||
| 2,622 | Warnaco Group — q | 128,740 | ||||||||||||
| 871 | West Marine — | 7,917 | ||||||||||||
| 312 | Westwood One — q | 1,363 | ||||||||||||
| 48 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Consumer Discretionary (continued) | ||||||||||||||
| 5,912 | Wet Seal, Class A — | $ | 24,771 | |||||||||||
| 424 | Weyco Group | 10,049 | ||||||||||||
| 142 | Winmark | 7,047 | ||||||||||||
| 1,774 | Winnebago Industries — q | 14,440 | ||||||||||||
| 2,958 | Wolverine World Wide | 112,197 | ||||||||||||
| 1,600 | World Wrestling Entertainment q | 16,816 | ||||||||||||
| 1,859 | Zale — q | 6,860 | ||||||||||||
| 1,247 | Zumiez — q | 28,369 | ||||||||||||
Total Consumer Discretionary | 8,849,518 | |||||||||||||
Consumer Staples – 3.3% | ||||||||||||||
| 205 | Alico | 4,668 | ||||||||||||
| 5,040 | Alliance One International — | 13,457 | ||||||||||||
| 1,109 | Andersons | 40,944 | ||||||||||||
| 40 | Arden Group, Class A | 3,628 | ||||||||||||
| 2,821 | B & G Foods | 59,862 | ||||||||||||
| 481 | Boston Beer, Class A — q | 42,559 | ||||||||||||
| 706 | Calavo Growers q | 15,934 | ||||||||||||
| 761 | Cal-Maine Foods | 25,357 | ||||||||||||
| 2,263 | Casey’s General Stores | 112,132 | ||||||||||||
| 4,334 | Central European Distribution — q | 23,404 | ||||||||||||
| 2,823 | Central Garden & Pet, Class A — | 24,814 | ||||||||||||
| 616 | Chefs’ Warehouse Holdings — q | 8,803 | ||||||||||||
| 2,707 | Chiquita Brands International — q | 24,038 | ||||||||||||
| 265 | Coca-Cola Bottling | 14,872 | ||||||||||||
| 602 | Craft Brewers Alliance — | 3,943 | ||||||||||||
| 6,975 | Darling International — | 97,789 | ||||||||||||
| 1,313 | Diamond Foods q | 86,330 | ||||||||||||
| 2,076 | Dole Food — q | 21,964 | ||||||||||||
| 1,434 | Elizabeth Arden — q | 49,157 | ||||||||||||
| 339 | Farmer Brothers | 1,983 | ||||||||||||
| 1,058 | Female Health q | 4,814 | ||||||||||||
| 2,112 | Fresh Del Monte Produce q | 53,771 | ||||||||||||
| 1,677 | Fresh Market — q | 67,080 | ||||||||||||
| 144 | Griffin Land & Nurseries | 3,862 | ||||||||||||
| 2,135 | Hain Celestial Group — | 71,651 | ||||||||||||
| 551 | Harbinger Group — | 2,832 | ||||||||||||
| 5,422 | Heckmann — q | 32,478 | ||||||||||||
| 698 | Imperial Sugar | 4,725 | ||||||||||||
| 775 | Ingles Markets, Class A | 11,702 | ||||||||||||
| 944 | Inter Parfums | 17,407 | ||||||||||||
| 802 | J&J Snack Foods | 41,359 | ||||||||||||
| 1,082 | Lancaster Colony q | 71,975 | ||||||||||||
| 263 | Lifeway Foods — | 2,772 | ||||||||||||
| 481 | Limoneira q | 8,345 | ||||||||||||
| 822 | Medifast — q | 13,514 | ||||||||||||
| Nuveen Investments | 49 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Consumer Staples (continued) | ||||||||||||||
| 716 | MGP Ingredients — | $ | 4,697 | |||||||||||
| 700 | Nash-Finch | 18,424 | ||||||||||||
| 666 | National Beverage — | 11,269 | ||||||||||||
| 647 | Natures Sunshine Product | 11,232 | ||||||||||||
| 3,265 | Nu Skin Enterprises, Class A | 164,980 | ||||||||||||
| 532 | Nutraceutical International — | 7,342 | ||||||||||||
| 313 | Oil-Dri Corporation of America | 6,276 | ||||||||||||
| 1,120 | Omega Protein — q | 12,130 | ||||||||||||
| 1,371 | Pantry — | 19,386 | ||||||||||||
| 3,018 | Pilgrims Pride — q | 15,211 | ||||||||||||
| 2,998 | Prestige Brand Holdings — | 31,719 | ||||||||||||
| 1,043 | PriceSmart q | 79,310 | ||||||||||||
| 862 | Primo Water — q | 5,241 | ||||||||||||
| 634 | Revlon — | 9,339 | ||||||||||||
| 35,129 | Rite Aid — q | 40,750 | ||||||||||||
| 2,882 | Ruddick | 125,972 | ||||||||||||
| 1,299 | Sanderson Farms q | 64,300 | ||||||||||||
| 716 | Schiff Nutrition International — | 8,750 | ||||||||||||
| 550 | Seneca Foods — q | 11,577 | ||||||||||||
| 3,643 | Smart Balance — q | 23,862 | ||||||||||||
| 2,733 | Snyders-Lance | 57,994 | ||||||||||||
| 1,354 | Spartan Stores | 23,180 | ||||||||||||
| 967 | Spectrum Brands Holdings — | 24,542 | ||||||||||||
| 6,382 | Star Scientific — q | 18,508 | ||||||||||||
| 472 | Susser Holdings — | 10,365 | ||||||||||||
| 1,097 | Synutra International — q | 7,295 | ||||||||||||
| 1,375 | Tootsie Roll Industries q | 34,059 | ||||||||||||
| 2,084 | TreeHouse Foods — q | 127,833 | ||||||||||||
| 2,884 | United Natural Foods — | 105,295 | ||||||||||||
| 1,375 | Universal q | 58,877 | ||||||||||||
| 399 | USANA Health Sciences — q | 13,805 | ||||||||||||
| 2,530 | Vector Group q | 44,452 | ||||||||||||
| 371 | Village Super Market | 10,522 | ||||||||||||
| 962 | WD-40 Company | 42,347 | ||||||||||||
| 618 | Weis Markets | 24,442 | ||||||||||||
| 3,327 | Winn Dixie Stores — | 21,093 | ||||||||||||
Total Consumer Staples | 2,380,301 | |||||||||||||
Energy – 6.2% | ||||||||||||||
| 4,905 | Abraxas Petroleum — q | 19,130 | ||||||||||||
| 666 | Alon USA Energy | 5,062 | ||||||||||||
| 544 | Apco Oil & Gas International | 45,152 | ||||||||||||
| 1,337 | Approach Resources — q | 32,636 | ||||||||||||
| 2,640 | ATP Oil & Gas — q | 27,852 | ||||||||||||
| 1,437 | Basic Energy Services — | 26,355 | ||||||||||||
| 3,073 | Berry Petroleum, Class A q | 106,172 | ||||||||||||
| 50 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Energy (continued) | ||||||||||||||
| 2,814 | Bill Barrett — | $ | 117,062 | |||||||||||
| 6,086 | BPZ Resources — q | 18,197 | ||||||||||||
| 2,164 | Bristow Group — | 107,724 | ||||||||||||
| 634 | C&J Energy Services — | 10,689 | ||||||||||||
| 5,591 | Cal Dive International — | 12,524 | ||||||||||||
| 2,331 | Callon Petroleum — | 10,979 | ||||||||||||
| 3,395 | Camac Energy — q | 3,768 | ||||||||||||
| 2,321 | Carrizo Oil & Gas — q | 63,131 | ||||||||||||
| 4,937 | Cheniere Energy — q | 56,578 | ||||||||||||
| 358 | Clayton Williams Energy — q | 23,392 | ||||||||||||
| 2,909 | Clean Energy Fuels — q | 34,384 | ||||||||||||
| 3,634 | Cloud Peak Energy — q | 83,400 | ||||||||||||
| 4,705 | Complete Production Services — | 154,324 | ||||||||||||
| 2,838 | Comstock Resources — q | 51,765 | ||||||||||||
| 727 | Contango Oil & Gas Company — q | 46,775 | ||||||||||||
| 1,263 | Crimson Exploration — | 3,764 | ||||||||||||
| 2,383 | Crosstex Energy q | 31,051 | ||||||||||||
| 5,234 | CVR Energy — | 129,594 | ||||||||||||
| 474 | Dawson Geophysical — q | 13,699 | ||||||||||||
| 731 | Delek US Holdings | 10,585 | ||||||||||||
| 3,730 | DHT Maritime q | 5,968 | ||||||||||||
| 2,048 | Dril-Quip — q | 133,325 | ||||||||||||
| 1,717 | Energy Partners — q | 24,622 | ||||||||||||
| 4,490 | Energy XXI — q | 131,871 | ||||||||||||
| 876 | Evolution Petroleum — | 6,053 | ||||||||||||
| 3,811 | Exterran Holdings — q | 36,205 | ||||||||||||
| 3,073 | Frontline q | 15,980 | ||||||||||||
| 3,119 | FX Energy — q | 18,464 | ||||||||||||
| 3,406 | Gastar Exploration — q | 12,602 | ||||||||||||
| 6,715 | General Maritime q | 1,746 | ||||||||||||
| 617 | Geokinetics — | 2,018 | ||||||||||||
| 1,195 | GeoResources — q | 31,715 | ||||||||||||
| 349 | Gevo — q | 2,593 | ||||||||||||
| 1,080 | Global Geophysical Services — q | 10,303 | ||||||||||||
| 6,083 | Global Industries — | 48,360 | ||||||||||||
| 3,575 | GMX Resources — q | 8,938 | ||||||||||||
| 2,378 | Golar LNG q | 96,143 | ||||||||||||
| 1,520 | Goodrich Petroleum — q | 24,092 | ||||||||||||
| 1,236 | Green Plains Renewable Energy — q | 12,929 | ||||||||||||
| 849 | Gulf Island Fabrication | 23,645 | ||||||||||||
| 1,415 | Gulfmark Offshore, Class A — | 58,850 | ||||||||||||
| 2,489 | Gulfport Energy — | 77,507 | ||||||||||||
| 225 | Hallador Energy Company | 2,138 | ||||||||||||
| 1,993 | Harvest Natural Resources — q | 21,265 | ||||||||||||
| 6,319 | Helix Energy Solutions Group — | 114,121 | ||||||||||||
| Nuveen Investments | 51 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Energy (continued) | ||||||||||||||
| 6,866 | Hercules Offshore — | $ | 26,022 | |||||||||||
| 1,348 | Hornbeck Offshore Services — q | 44,268 | ||||||||||||
| 1,070 | Houston American Energy q | 16,756 | ||||||||||||
| 9,273 | Hyperdynamics — q | 45,438 | ||||||||||||
| 7,831 | Ion Geophysical — | 59,672 | ||||||||||||
| 65 | Isramco — | 5,514 | ||||||||||||
| 2,118 | James River Coal — q | 21,921 | ||||||||||||
| 7,437 | Key Energy Services — q | 96,160 | ||||||||||||
| 644 | KiOR, Class A — q | 10,645 | ||||||||||||
| 1,272 | Knightsbridge Tankers q | 21,471 | ||||||||||||
| 12,476 | Kodiak Oil & Gas — | 86,209 | ||||||||||||
| 1,291 | L & L Energy — q | 3,499 | ||||||||||||
| 1,815 | Lufkin Industries q | 107,248 | ||||||||||||
| 6,638 | Magnum Hunter Resources — q | 29,871 | ||||||||||||
| 1,575 | Matrix Service — | 16,727 | ||||||||||||
| 5,856 | McMoRan Exploration — | 71,326 | ||||||||||||
| 1,851 | Miller Energy Resources — q | 5,312 | ||||||||||||
| 706 | Mitcham Industries — | 10,293 | ||||||||||||
| 709 | Natural Gas Services Group ��� | 9,756 | ||||||||||||
| 5,388 | Newpark Resources — q | 48,115 | ||||||||||||
| 2,771 | Nordic American Tanker Shipping q | 39,958 | ||||||||||||
| 3,764 | Northern Oil & Gas — | 90,976 | ||||||||||||
| 3,549 | Oasis Petroleum — q | 104,128 | ||||||||||||
| 1,588 | Overseas Shipholding Group q | 19,818 | ||||||||||||
| 259 | OYO Geospace — | 20,352 | ||||||||||||
| 398 | Panhandle Oil And Gas q | 13,261 | ||||||||||||
| 7,077 | Parker Drilling — q | 39,136 | ||||||||||||
| 5,442 | Patriot Coal — q | 68,352 | ||||||||||||
| 2,736 | Penn Virginia q | 16,662 | ||||||||||||
| 1,400 | Petroleum Development — q | 36,554 | ||||||||||||
| 3,339 | PetroQuest Energy — q | 24,341 | ||||||||||||
| 793 | PHI — | 17,502 | ||||||||||||
| 3,673 | Pioneer Drilling — | 36,326 | ||||||||||||
| 12,797 | Rentech — q | 20,603 | ||||||||||||
| 2,752 | Resolute Energy — q | 35,776 | ||||||||||||
| 2,080 | Rex Energy — q | 32,198 | ||||||||||||
| 393 | Rex Stores — | 7,168 | ||||||||||||
| 338 | RigNet — | 5,283 | ||||||||||||
| 3,159 | Rosetta Resources — | 140,070 | ||||||||||||
| 1,438 | Scorpio Tankers — | 9,189 | ||||||||||||
| 2,401 | SemGroup — q | 67,180 | ||||||||||||
| 2,653 | Ship Finance International q | 37,964 | ||||||||||||
| 643 | Solazyme — | 6,539 | ||||||||||||
| 3,050 | Stone Energy — q | 74,085 | ||||||||||||
| 2,528 | Swift Energy — | 77,407 | ||||||||||||
| 52 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Energy (continued) | ||||||||||||||
| 5,180 | Syntroleum — | $ | 4,351 | |||||||||||
| 980 | Targa Resources q | 33,065 | ||||||||||||
| 2,453 | Teekay Tankers, Class A q | 12,118 | ||||||||||||
| 1,791 | Tesco — q | 27,707 | ||||||||||||
| 4,589 | TETRA Technologies — | 43,596 | ||||||||||||
| 2,560 | Triangle Petroleum — | 14,438 | ||||||||||||
| 877 | Union Drilling — | 6,569 | ||||||||||||
| 5,988 | UR Energy — q | 7,725 | ||||||||||||
| 3,737 | Uranerz Energy — q | 8,520 | ||||||||||||
| 4,251 | Uranium Energy — q | 14,283 | ||||||||||||
| 5,404 | Uranium Resources — q | 6,485 | ||||||||||||
| 6,851 | USEC — q | 14,387 | ||||||||||||
| 3,048 | Vaalco Energy | 20,757 | ||||||||||||
| 10,412 | Vantage Drilling — | 14,160 | ||||||||||||
| 1,735 | Venoco — | 16,899 | ||||||||||||
| 2,719 | Voyager Oil & Gas — | 7,504 | ||||||||||||
| 2,078 | W&T Offshore q | 40,916 | ||||||||||||
| 4,309 | Warren Resources — | 13,487 | ||||||||||||
| 3,146 | Western Refining — q | 50,273 | ||||||||||||
| 572 | Westmoreland Coal — | 6,298 | ||||||||||||
| 2,328 | Willbros Group — | 11,850 | ||||||||||||
| 4,154 | World Fuel Services q | 165,537 | ||||||||||||
| 1,783 | Zion Oil & Gas — | 5,189 | ||||||||||||
Total Energy | 4,490,362 | |||||||||||||
Financials – 19.8% | ||||||||||||||
| 907 | 1st Source | 21,804 | ||||||||||||
| 1,576 | 1st United Bancorp — | 8,164 | ||||||||||||
| 2,418 | Acadia Realty Trust - REIT | 50,101 | ||||||||||||
| 3,263 | Advance America Cash Advance Centers | 27,507 | ||||||||||||
| 570 | Agree Realty - REIT q | 13,629 | ||||||||||||
| 131 | Alexander’s - REIT — q | 56,815 | ||||||||||||
| 251 | Alliance Financial | 7,728 | ||||||||||||
| 5,409 | Alterra Capital Holdings q | 117,267 | ||||||||||||
| 1,890 | American Assets Trust - REIT | 38,310 | ||||||||||||
| 4,049 | American Campus Communities - REIT q | 157,628 | ||||||||||||
| 477 | American Capital Mortgage Investment - REIT | 8,672 | ||||||||||||
| 3,547 | American Equity Investment Life Holding q | 38,449 | ||||||||||||
| 622 | American Safety Insurance Holdings — | 12,695 | ||||||||||||
| 1,418 | Ameris Bancorp — | 14,251 | ||||||||||||
| 1,150 | Amerisafe — | 24,782 | ||||||||||||
| 479 | Ames National | 8,823 | ||||||||||||
| 1,437 | Amtrust Financial Services | 36,471 | ||||||||||||
| 7,542 | Anworth Mortgage Asset - REIT | 48,646 | ||||||||||||
| 1,226 | Apollo Commercial Real Estate Finance - REIT q | 17,176 | ||||||||||||
| 11,679 | Apollo Investment | 96,702 | ||||||||||||
| Nuveen Investments | 53 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 686 | Apollo Residential Mortgage — | $ | 11,189 | |||||||||||
| 1,635 | Argo Group International Holdings | 49,361 | ||||||||||||
| 400 | Arlington Asset Investment, Class A | 9,232 | ||||||||||||
| 4,423 | Armour Residential - REIT q | 31,624 | ||||||||||||
| 547 | Arrow Financial | 12,767 | ||||||||||||
| 1,865 | Artio Global Investors q | 13,652 | ||||||||||||
| 3,063 | Ashford Hospitality Trust - REIT — q | 27,261 | ||||||||||||
| 2,449 | Associated Estates Realty - REIT | 41,584 | ||||||||||||
| 5,185 | Astoria Financial | 43,035 | ||||||||||||
| 533 | Avatar Holdings — | 5,063 | ||||||||||||
| 499 | Baldwin & Lyons, Class B | 11,492 | ||||||||||||
| 411 | BancFirst q | 15,906 | ||||||||||||
| 1,670 | Banco Latinoamericano de Exportaciones q | 27,137 | ||||||||||||
| 1,682 | Bancorp Bank — | 13,523 | ||||||||||||
| 222 | Bancorp Rhode Island | 9,679 | ||||||||||||
| 4,977 | BancorpSouth q | 48,625 | ||||||||||||
| 2,662 | Bank Mutual | 8,864 | ||||||||||||
| 333 | Bank of Kentucky Financial q | 7,193 | ||||||||||||
| 316 | Bank of Marin Bancorp q | 11,199 | ||||||||||||
| 1,673 | Bank of the Ozarks q | 41,608 | ||||||||||||
| 1,099 | BankFinancial | 8,792 | ||||||||||||
| 956 | Banner | 16,797 | ||||||||||||
| 1,775 | Beneficial Mutual Bancorp — | 14,573 | ||||||||||||
| 1,175 | Berkshire Hills Bancorp | 23,523 | ||||||||||||
| 4,506 | BGC Partners, Class A q | 30,866 | ||||||||||||
| 7,824 | BioMed Realty Trust - REIT q | 141,693 | ||||||||||||
| 4,353 | Blackrock Kelso Capital q | 37,175 | ||||||||||||
| 528 | BofI Holding — | 8,078 | ||||||||||||
| 4,589 | Boston Private Financial Holdings q | 34,785 | ||||||||||||
| 379 | Bridge Bancorp q | 7,296 | ||||||||||||
| 530 | Bridge Cap Holdings — | 5,846 | ||||||||||||
| 3,346 | Brookline Bancorp | 27,973 | ||||||||||||
| 628 | Bryn Mawr Bank | 11,530 | ||||||||||||
| 1,416 | Calamos Asset Management, Class A | 17,686 | ||||||||||||
| 112 | California First National Bancorp | 1,867 | ||||||||||||
| 465 | Camden National q | 13,801 | ||||||||||||
| 1,804 | Campus Crest Communities - REIT q | 20,620 | ||||||||||||
| 674 | Cape Bancorp — | 5,122 | ||||||||||||
| 809 | Capital Bank — | 1,699 | ||||||||||||
| 662 | Capital City Bank Group q | 6,746 | ||||||||||||
| 178 | Capital Southwest | 15,666 | ||||||||||||
| 3,996 | CapLease - REIT | 15,624 | ||||||||||||
| 4,953 | Capstead Mortgage - REIT q | 60,030 | ||||||||||||
| 1,642 | Cardinal Financial | 17,635 | ||||||||||||
| 2,568 | Cardtronics — | 64,020 | ||||||||||||
| 54 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 347 | Cascade Bancorp — | $ | 1,836 | |||||||||||
| 1,753 | Cash America International q | 95,977 | ||||||||||||
| 4,688 | Cathay General Bancorp q | 65,585 | ||||||||||||
| 8,844 | CBL & Associates Properties - REIT q | 136,021 | ||||||||||||
| 3,240 | Cedar Shopping Centers - REIT | 11,891 | ||||||||||||
| 700 | Center Bancorp | 6,496 | ||||||||||||
| 2,107 | Center Financial — | 13,843 | ||||||||||||
| 1,738 | Centerstate Banks of Florida | 9,872 | ||||||||||||
| 915 | Central Pacific Financial — q | 11,154 | ||||||||||||
| 215 | Century Bancorp | 5,820 | ||||||||||||
| 399 | Charter Financial | 3,739 | ||||||||||||
| 800 | Chatham Lodging Trust - REIT | 9,000 | ||||||||||||
| 1,611 | Chemical Financial q | 32,429 | ||||||||||||
| 1,887 | Chesapeake Lodging Trust - REIT | 28,192 | ||||||||||||
| 686 | CIFC — | 3,800 | ||||||||||||
| 2,297 | Citizens — q | 18,008 | ||||||||||||
| 717 | Citizens & Northern | 11,881 | ||||||||||||
| 936 | City Holdings q | 30,757 | ||||||||||||
| 495 | Clifton Savings Bancorp | 5,039 | ||||||||||||
| 722 | CNB Financial q | 10,339 | ||||||||||||
| 13,341 | CNO Financial Group — q | 83,381 | ||||||||||||
| 1,938 | CoBiz Financial | 10,271 | ||||||||||||
| 2,552 | Cogdell Spencer - REIT | 10,310 | ||||||||||||
| 1,049 | Cohen & Steers q | 28,501 | ||||||||||||
| 4,976 | Colonial Properties Trust - REIT q | 100,913 | ||||||||||||
| 1,910 | Colony Financial - REIT | 28,020 | ||||||||||||
| 2,360 | Columbia Banking System | 45,005 | ||||||||||||
| 2,144 | Community Bank System q | 54,801 | ||||||||||||
| 871 | Community Trust Bancorp | 24,675 | ||||||||||||
| 2,407 | Compass Diversified Holdings q | 31,435 | ||||||||||||
| 243 | Consolidated-Tomoka Land | 7,278 | ||||||||||||
| 1,160 | Coresite Realty - REIT | 19,314 | ||||||||||||
| 5,381 | Cousins Properties - REIT | 35,299 | ||||||||||||
| 4,171 | Cowen Group — q | 11,345 | ||||||||||||
| 1,492 | Crawford & Company — | 10,608 | ||||||||||||
| 391 | Credit Acceptance — | 26,948 | ||||||||||||
| 3,301 | CreXus Investment - REIT | 31,558 | ||||||||||||
| 5,928 | CubeSmart - REIT q | 58,153 | ||||||||||||
| 5,325 | CVB Financial q | 51,706 | ||||||||||||
| 4,779 | CYS Investments - REIT q | 60,598 | ||||||||||||
| 14,645 | DCT Industrial Trust - REIT q | 72,639 | ||||||||||||
| 2,878 | Delphi Financial Group, Class A q | 76,209 | ||||||||||||
| 2,591 | DFC Global — q | 56,795 | ||||||||||||
| 148 | Diamond Hill Investment Group | 11,141 | ||||||||||||
| 9,978 | DiamondRock Hospitality - REIT | 90,301 | ||||||||||||
| Nuveen Investments | 55 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 1,826 | Dime Community Bancshares | $ | 21,766 | |||||||||||
| 447 | Donegal Group, Class A | 5,596 | ||||||||||||
| 7,588 | Doral Financial — | 9,106 | ||||||||||||
| 1,783 | Duff & Phelps, Class A | 22,626 | ||||||||||||
| 3,507 | DuPont Fabros Technology - REIT — q | 72,911 | ||||||||||||
| 2,333 | Dynex Capital - REIT | 20,437 | ||||||||||||
| 999 | Eagle Bancorp — q | 13,856 | ||||||||||||
| 1,588 | EastGroup Properties - REIT q | 69,253 | ||||||||||||
| 1,173 | Edelman Financial Group | 8,141 | ||||||||||||
| 4,258 | Education Realty Trust - REIT | 39,386 | ||||||||||||
| 1,238 | eHealth — q | 18,384 | ||||||||||||
| 349 | EMC Insurance Group | 6,785 | ||||||||||||
| 2,299 | Employers Holdings | 37,290 | ||||||||||||
| 477 | Encore Bancshares — | 5,610 | ||||||||||||
| 962 | Encore Capital Group — | 26,061 | ||||||||||||
| 407 | Enstar Group — | 37,432 | ||||||||||||
| 337 | Enterprise Bancorp q | 4,853 | ||||||||||||
| 948 | Enterprise Financial Services | 14,628 | ||||||||||||
| 2,792 | Entertainment Properties Trust - REIT | 125,082 | ||||||||||||
| 879 | Epoch Holdings | 18,107 | ||||||||||||
| 1,834 | Equity Lifestyle Properties - REIT q | 121,282 | ||||||||||||
| 3,148 | Equity One - REIT | 53,988 | ||||||||||||
| 672 | ESB Financial | 9,307 | ||||||||||||
| 656 | Essa Bancorp | 7,242 | ||||||||||||
| 1,253 | Evercore Partners, Class A q | 34,382 | ||||||||||||
| 1,788 | Excel Trust - REIT q | 18,792 | ||||||||||||
| 5,537 | Extra Space Storage - REIT | 124,749 | ||||||||||||
| 2,753 | EZCORP, Class A — | 76,478 | ||||||||||||
| 7,566 | F.N.B. q | 76,341 | ||||||||||||
| 927 | FBL Financial Group, Class A q | 30,267 | ||||||||||||
| 3,120 | FBR Capital Markets — | 6,490 | ||||||||||||
| 572 | Federal Agricultural Mortgage, Class C q | 11,543 | ||||||||||||
| 7,355 | FelCor Lodging Trust - REIT — | 22,139 | ||||||||||||
| 320 | Fidus Investment | 4,160 | ||||||||||||
| 4,311 | Fifth Street Finance q | 42,506 | ||||||||||||
| 2,283 | Financial Engines — q | 51,847 | ||||||||||||
| 799 | Financial Institutions | 13,088 | ||||||||||||
| 6,270 | First American Financial q | 75,240 | ||||||||||||
| 532 | First Bancorp q | 7,655 | ||||||||||||
| 901 | First Bancorp - North Carolina | 11,425 | ||||||||||||
| 4,459 | First Busey q | 22,741 | ||||||||||||
| 1,867 | First Cash Financial Services — | 77,480 | ||||||||||||
| 6,162 | First Commonwealth Financial q | 28,407 | ||||||||||||
| 947 | First Community Bancshares | 11,373 | ||||||||||||
| 1,065 | First Connecticut Bancorp — | 12,524 | ||||||||||||
| 56 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 563 | First Defiance Financial — | $ | 8,000 | |||||||||||
| 709 | First Financial | 23,298 | ||||||||||||
| 3,503 | First Financial Bancorp | 57,449 | ||||||||||||
| 1,845 | First Financial Bankshares q | 58,597 | ||||||||||||
| 970 | First Financial Holdings | 7,227 | ||||||||||||
| 5,163 | First Industrial Realty Trust - REIT — q | 50,856 | ||||||||||||
| 913 | First Interstate Bancsystem q | 11,540 | ||||||||||||
| 3,286 | First Marblehead — | 3,155 | ||||||||||||
| 1,514 | First Merchants | 12,203 | ||||||||||||
| 4,463 | First Midwest Bancorp q | 40,212 | ||||||||||||
| 441 | First of Long Island | 11,268 | ||||||||||||
| 604 | First Pactrust Bancorp | 7,598 | ||||||||||||
| 2,946 | First Potomac Realty Trust - REIT | 41,863 | ||||||||||||
| 6,513 | FirstMerit | 91,247 | ||||||||||||
| 11,314 | Flagstar Bancorp — | 8,825 | ||||||||||||
| 3,074 | Flagstone Reinsurance Holdings | 26,098 | ||||||||||||
| 1,836 | Flushing Financial q | 22,509 | ||||||||||||
| 2,111 | Forestar Real Estate Group — | 27,443 | ||||||||||||
| 338 | Fortegra — | 1,785 | ||||||||||||
| 842 | Fox Chase Bancorp q | 10,660 | ||||||||||||
| 803 | Franklin Financial — | 8,986 | ||||||||||||
| 4,209 | Franklin Street Properties - REIT q | 53,454 | ||||||||||||
| 1,324 | FXCM q | 15,226 | ||||||||||||
| 432 | Gain Capital Holdings — | 3,028 | ||||||||||||
| 441 | GAMCO Investors q | 20,771 | ||||||||||||
| 675 | German American Bancorp | 11,725 | ||||||||||||
| 1,493 | Getty Realty - REIT q | 23,798 | ||||||||||||
| 4,213 | GFI Group | 18,200 | ||||||||||||
| 4,220 | Glacier Bancorp q | 47,897 | ||||||||||||
| 1,286 | Gladstone Capital | 10,597 | ||||||||||||
| 652 | Gladstone Commercial - REIT | 10,973 | ||||||||||||
| 1,347 | Gladstone Investment | 10,089 | ||||||||||||
| 4,618 | Gleacher — | 5,911 | ||||||||||||
| 6,388 | Glimcher Realty Trust - REIT q | 58,514 | ||||||||||||
| 817 | Global Indemnity — | 16,495 | ||||||||||||
| 593 | Golub Capital BDC | 9,203 | ||||||||||||
| 2,078 | Government Properties Income Trust - REIT | 48,895 | ||||||||||||
| 612 | Great Southern Bancorp q | 12,173 | ||||||||||||
| 1,671 | Greenlight Capital — | 37,648 | ||||||||||||
| 690 | Hallmark Financial Services — | 5,354 | ||||||||||||
| 569 | Hampton Roads Bankshares — q | 2,498 | ||||||||||||
| 4,477 | Hancock Holding q | 135,653 | ||||||||||||
| 8,753 | Hanmi Financial — | 8,753 | ||||||||||||
| 688 | Harleysville Group q | 40,427 | ||||||||||||
| 1,831 | Harris & Harris Group — q | 7,196 | ||||||||||||
| Nuveen Investments | 57 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 4,455 | Hatteras Financial - REIT | $ | 114,493 | |||||||||||
| 4,567 | Healthcare Realty Trust - REIT q | 86,271 | ||||||||||||
| 895 | Heartland Financial USA q | 13,989 | ||||||||||||
| 2,611 | Hercules Technology Growth Capital | 25,274 | ||||||||||||
| 1,206 | Heritage Commerce — | 5,825 | ||||||||||||
| 905 | Heritage Financial q | 11,412 | ||||||||||||
| 8,391 | Hersha Hospitality Trust - REIT q | 37,004 | ||||||||||||
| 1,680 | HFF — q | 18,480 | ||||||||||||
| 4,319 | Highwoods Properties - REIT q | 133,803 | ||||||||||||
| 2,305 | Hilltop Holdings — | 18,163 | ||||||||||||
| 1,337 | Home Bancshares | 31,353 | ||||||||||||
| 959 | Home Federal Bancorp | 9,638 | ||||||||||||
| 2,817 | Home Properties - REIT q | 165,921 | ||||||||||||
| 2,655 | Horace Mann Educators | 35,710 | ||||||||||||
| 1,314 | Hudson Pacific Properties - REIT | 17,555 | ||||||||||||
| 845 | Hudson Valley Holding q | 18,353 | ||||||||||||
| 1,734 | IBERIABANK q | 89,682 | ||||||||||||
| 2,147 | ICG Group — | 23,166 | ||||||||||||
| 1,036 | Imperial Holdings — | 2,331 | ||||||||||||
| 426 | Independence Holdings | 3,532 | ||||||||||||
| 1,275 | Independent Bank q | 33,048 | ||||||||||||
| 718 | Infinity Property & Casualty | 41,615 | ||||||||||||
| 4,463 | Inland Real Estate - REIT | 33,472 | ||||||||||||
| 3,179 | International Bancshares q | 57,603 | ||||||||||||
| 792 | INTL FCStone — q | 19,198 | ||||||||||||
| 6,771 | Invesco Mortgage Capital - REIT | 106,847 | ||||||||||||
| 2,586 | Investment Technology Group — | 29,506 | ||||||||||||
| 2,679 | Investors Bancorp — | 37,185 | ||||||||||||
| 4,784 | Investors Real Estate Trust - REIT q | 35,449 | ||||||||||||
| 5,513 | iStar Financial - REIT — q | 37,433 | ||||||||||||
| 893 | JMP Group | 6,626 | ||||||||||||
| 248 | Kansas City Life Insurance | 8,313 | ||||||||||||
| 2,154 | KBW q | 30,501 | ||||||||||||
| 771 | Kearny Financial | 7,502 | ||||||||||||
| 1,395 | Kennedy-Wilson Holdings - REIT q | 17,326 | ||||||||||||
| 3,484 | Kilroy Realty - REIT q | 127,828 | ||||||||||||
| 3,219 | Kite Realty Group Trust - REIT | 13,294 | ||||||||||||
| 5,982 | Knight Capital Group, Class A — | 74,715 | ||||||||||||
| 1,107 | Kohlberg Capital | 7,284 | ||||||||||||
| 6,344 | Ladenburg Thalman Financial Services — q | 10,785 | ||||||||||||
| 1,501 | Lakeland Bancorp q | 13,944 | ||||||||||||
| 965 | Lakeland Financial | 23,054 | ||||||||||||
| 5,071 | LaSalle Hotel Properties - REIT q | 121,248 | ||||||||||||
| 7,137 | Lexington Corporate Properties Trust - REIT q | 56,097 | ||||||||||||
| 1,784 | LTC Properties - REIT q | 50,594 | ||||||||||||
| 58 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 3,013 | Maiden Holdings | $ | 24,556 | |||||||||||
| 1,198 | Main Street Capital q | 20,941 | ||||||||||||
| 1,201 | MainSource Financial Group | 11,265 | ||||||||||||
| 1,711 | MarketAxess Holdings | 50,013 | ||||||||||||
| 509 | Marlin Business Services — | 6,001 | ||||||||||||
| 3,245 | MB Financial | 53,770 | ||||||||||||
| 4,766 | MCG Capital q | 22,114 | ||||||||||||
| 3,147 | Meadowbrook Insurance Group | 32,603 | ||||||||||||
| 806 | Medallion Financial | 9,591 | ||||||||||||
| 6,720 | Medical Properties Trust - REIT | 67,872 | ||||||||||||
| 654 | Medley Capital | 6,089 | ||||||||||||
| 291 | Merchants Bancshares | 8,285 | ||||||||||||
| 509 | Meridian Interstate Bancorp — | 6,632 | ||||||||||||
| 801 | Metro Bancorp — | 6,624 | ||||||||||||
| 9,767 | MF Global Holdings — q | — | ||||||||||||
| 21,224 | MFA Financial - REIT | 143,262 | ||||||||||||
| 11,305 | MGIC Investment — q | 30,071 | ||||||||||||
| 2,188 | Mid-America Apartment Communities - REIT q | 136,531 | ||||||||||||
| 455 | Midsouth Bancorp | 6,247 | ||||||||||||
| 1,056 | Mission West Properties - REIT | 8,216 | ||||||||||||
| 2,049 | Monmouth Real Estate Investment, Class A - REIT | 17,212 | ||||||||||||
| 3,718 | Montpelier Holdings q | 65,065 | ||||||||||||
| 2,839 | MPG Office Trust - REIT — q | 6,785 | ||||||||||||
| 1,431 | MVC Capital | 18,503 | ||||||||||||
| 2,252 | Nara Bancorp — | 19,097 | ||||||||||||
| 422 | National Bankshares q | 11,795 | ||||||||||||
| 2,676 | National Financial Partners — q | 36,581 | ||||||||||||
| 1,569 | National Health Investors - REIT | 70,119 | ||||||||||||
| 404 | National Interstate | 10,746 | ||||||||||||
| 7,375 | National Penn Bancshares q | 57,525 | ||||||||||||
| 5,067 | National Retail Properties - REIT q | 138,076 | ||||||||||||
| 151 | National Western Life Insurance, Class A | 21,709 | ||||||||||||
| 693 | Navigators Group — | 31,615 | ||||||||||||
| 1,990 | NBT Bancorp | 42,825 | ||||||||||||
| 1,493 | Nelnet, Class A — | 32,070 | ||||||||||||
| 1,789 | Netspend Holdings — q | 10,287 | ||||||||||||
| 420 | New Mountain Finance | 5,632 | ||||||||||||
| 6,264 | Newcastle Investment - REIT — | 28,752 | ||||||||||||
| 1,579 | Newstar Financial — | 16,927 | ||||||||||||
| 1,290 | NGP Capital Resources | 9,585 | ||||||||||||
| 562 | Nicholas Financial | 6,384 | ||||||||||||
| 987 | Northfield Bancorp q | 13,630 | ||||||||||||
| 5,638 | NorthStar Realty Finance - REIT | 22,270 | ||||||||||||
| 6,139 | Northwest Bancshares q | 76,553 | ||||||||||||
| 858 | OceanFirst Financial q | 11,188 | ||||||||||||
| Nuveen Investments | 59 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 4,440 | Ocwen Financial — q | $ | 64,380 | |||||||||||
| 5,558 | Old National Bancorp | 64,306 | ||||||||||||
| 6,057 | OMEGA Healthcare Investors - REIT q | 107,572 | ||||||||||||
| 720 | OmniAmerican Bancorp — q | 10,620 | ||||||||||||
| 624 | One Liberty Properties - REIT | 10,146 | ||||||||||||
| 1,284 | OneBeacon Insurance Group, Class A q | 19,542 | ||||||||||||
| 605 | Oppenheimer Holdings | 10,630 | ||||||||||||
| 2,699 | Oriental Financial Group q | 28,582 | ||||||||||||
| 3,253 | Oritani Financial | 42,159 | ||||||||||||
| 384 | Orrstown Financial Services | 3,517 | ||||||||||||
| 238 | Pacific Capital Bancorp — | 6,162 | ||||||||||||
| 1,122 | Pacific Continental | 9,728 | ||||||||||||
| 1,806 | PacWest Bancorp | 31,858 | ||||||||||||
| 757 | Park National q | 45,200 | ||||||||||||
| 1,656 | Park Sterling — | 6,376 | ||||||||||||
| 1,268 | Parkway Properties - REIT | 16,294 | ||||||||||||
| 2,986 | Pebblebrook Hotel Trust - REIT q | 56,824 | ||||||||||||
| 2,675 | PennantPark Investment q | 28,676 | ||||||||||||
| 233 | Penns Woods Bancorp q | 8,558 | ||||||||||||
| 3,282 | Pennsylvania Real Estate Investment Trust - REIT | 33,673 | ||||||||||||
| 1,553 | Pennymac Mortgage Investment Trust - REIT q | 26,556 | ||||||||||||
| 629 | Peoples Bancorp | 8,322 | ||||||||||||
| 3,353 | PHH — | 61,863 | ||||||||||||
| 10,273 | Phoenix Companies — q | 15,307 | ||||||||||||
| 1,314 | PICO Holdings — | 30,012 | ||||||||||||
| 2,002 | Pinnacle Financial Partners — q | 30,050 | ||||||||||||
| 943 | Piper Jaffray Companies — | 19,577 | ||||||||||||
| 2,222 | Platinum Underwriters Holdings | 76,948 | ||||||||||||
| 8,817 | PMI Group q | 2,712 | ||||||||||||
| 1,020 | Portfolio Recovery Associates — q | 71,543 | ||||||||||||
| 2,970 | Post Properties - REIT q | 122,008 | ||||||||||||
| 2,423 | Potlatch - REIT | 78,699 | ||||||||||||
| 1,519 | Presidential Life | 15,068 | ||||||||||||
| 2,027 | Primerica q | 45,871 | ||||||||||||
| 1,458 | Primus Guaranty — q | 8,515 | ||||||||||||
| 3,579 | PrivateBancorp | 39,011 | ||||||||||||
| 1,794 | ProAssurance — | 137,331 | ||||||||||||
| 6,499 | Prospect Capital q | 62,195 | ||||||||||||
| 2,795 | Prosperity Bancshares q | 107,580 | ||||||||||||
| 3,471 | Provident Financial Services q | 44,949 | ||||||||||||
| 2,388 | Provident New York Bancorp | 16,597 | ||||||||||||
| 1,091 | PS Business Parks - REIT | 58,074 | ||||||||||||
| 505 | Pzena Investment Management | 2,187 | ||||||||||||
| 7,980 | Radian Group q | 18,753 | ||||||||||||
| 2,249 | RAIT Financial Trust - REIT q | 11,695 | ||||||||||||
| 60 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 2,251 | Ramco-Gershenson Properties Trust - REIT q | $ | 21,722 | |||||||||||
| 4,726 | Redwood Trust - REIT q | 54,916 | ||||||||||||
| 1,449 | Renasant q | 20,895 | ||||||||||||
| 604 | Republic Bancorp, Class A | 12,285 | ||||||||||||
| 4,246 | Resource Capital - REIT q | 22,801 | ||||||||||||
| 2,434 | Retail Opportunity Investments q | 27,748 | ||||||||||||
| 1,055 | RLI | 74,209 | ||||||||||||
| 1,594 | RLJ Lodging Trust | 23,623 | ||||||||||||
| 1,708 | Rockville Financial | 17,165 | ||||||||||||
| 476 | Roma Financial | 4,603 | ||||||||||||
| 1,646 | S&T Bancorp q | 30,731 | ||||||||||||
| 2,130 | Sabra Health Care - REIT | 21,875 | ||||||||||||
| 1,259 | Safeguard Scientifics — | 21,290 | ||||||||||||
| 731 | Safety Insurance Group | 31,155 | ||||||||||||
| 1,456 | Sandy Spring Bancorp | 24,767 | ||||||||||||
| 425 | Saul Centers - REIT q | 15,232 | ||||||||||||
| 832 | SCBT Financial q | 24,569 | ||||||||||||
| 1,197 | SeaBright Insurance Holdings q | 8,594 | ||||||||||||
| 4,193 | Seacoast Banking — | 6,248 | ||||||||||||
| 3,182 | Selective Insurance Group | 51,007 | ||||||||||||
| 698 | Sierra Bancorp q | 7,636 | ||||||||||||
| 2,747 | Signature Bank — q | 153,145 | ||||||||||||
| 1,009 | Simmons First National, Class A q | 26,194 | ||||||||||||
| 2,174 | Solar Capital q | 48,263 | ||||||||||||
| 471 | Solar Senior Capital | 7,051 | ||||||||||||
| 980 | Southside Bancshares q | 20,159 | ||||||||||||
| 1,164 | Southwest Bancorp — | 5,471 | ||||||||||||
| 1,676 | Sovran Self Storage - REIT q | 74,079 | ||||||||||||
| 918 | Stag Industrial - REIT q | 9,859 | ||||||||||||
| 5,557 | Starwood Property Trust - REIT | 104,416 | ||||||||||||
| 866 | State Auto Financial | 11,509 | ||||||||||||
| 977 | State Bancorp | 11,558 | ||||||||||||
| 1,829 | State Bank Financial — q | 26,411 | ||||||||||||
| 1,384 | StellarOne | 16,594 | ||||||||||||
| 1,843 | Sterling Bancorp | 15,205 | ||||||||||||
| 1,599 | Sterling Financial — q | 24,001 | ||||||||||||
| 1,084 | Stewart Information Services q | 10,883 | ||||||||||||
| 3,202 | Stifel Financial — | 102,048 | ||||||||||||
| 10,420 | Strategic Hotels & Resorts - REIT — | 59,290 | ||||||||||||
| 629 | Suffolk Bancorp q | 5,353 | ||||||||||||
| 2,176 | Sun Bancorp — | 6,463 | ||||||||||||
| 1,266 | Sun Communities - REIT q | 48,209 | ||||||||||||
| 7,045 | Sunstone Hotel Investors - REIT q | 48,963 | ||||||||||||
| 9,295 | Susquehanna Bancshares q | 67,482 | ||||||||||||
| 2,556 | SVB Financial Group — q | 117,423 | ||||||||||||
| Nuveen Investments | 61 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 1,737 | SWS Group q | $ | 9,571 | |||||||||||
| 841 | SY Bancorp q | 17,308 | ||||||||||||
| 4,969 | Symetra Financial q | 46,063 | ||||||||||||
| 5,121 | Tanger Factory Outlet Centers - REIT | 144,207 | ||||||||||||
| 655 | Taylor Capital Group — q | 6,085 | ||||||||||||
| 835 | Tejon Ranch — | 21,702 | ||||||||||||
| 526 | Terreno Realty - REIT q | 6,549 | ||||||||||||
| 693 | Territorial Bancorp | 13,617 | ||||||||||||
| 2,219 | Texas Capital Bancshares — | 62,132 | ||||||||||||
| 534 | THL Credit | 6,168 | ||||||||||||
| 1,867 | TICC Capital q | 16,635 | ||||||||||||
| 501 | Tompkins Financial q | 19,754 | ||||||||||||
| 606 | Tower Bancorp | 15,586 | ||||||||||||
| 2,198 | Tower Group q | 52,159 | ||||||||||||
| 1,395 | Townebank Portsmouth q | 17,382 | ||||||||||||
| 1,299 | Triangle Capital | 21,771 | ||||||||||||
| 872 | TriCo Bancshares q | 12,932 | ||||||||||||
| 5,457 | TrustCo Bank Corporation of New York q | 27,067 | ||||||||||||
| 3,754 | Trustmark q | 83,114 | ||||||||||||
| 8,379 | Two Harbors Investment - REIT q | 78,344 | ||||||||||||
| 1,852 | UMB Financial | 68,283 | ||||||||||||
| 686 | UMH Properties - REIT | 6,887 | ||||||||||||
| 6,834 | Umpqua Holdings q | 78,249 | ||||||||||||
| 1,208 | Union First Market Bankshares | 15,487 | ||||||||||||
| 2,945 | United Bankshares q | 69,914 | ||||||||||||
| 2,478 | United Community Banks — q | 18,312 | ||||||||||||
| 932 | United Financial Bancorp | 15,042 | ||||||||||||
| 1,323 | United Fire & Casualty | 24,886 | ||||||||||||
| 866 | Universal Health Realty Income Trust - REIT | 32,882 | ||||||||||||
| 1,084 | Universal Insurance Holdings | 4,574 | ||||||||||||
| 1,002 | Univest Corporation of Pennsylvania | 15,240 | ||||||||||||
| 1,658 | Urstadt Biddle Properties - REIT, Class A | 29,579 | ||||||||||||
| 2,016 | ViewPoint Financial Group | 25,946 | ||||||||||||
| 1,396 | Virginia Commerce Bancorp — | 8,879 | ||||||||||||
| 353 | Virtus Investment Partners — q | 22,027 | ||||||||||||
| 621 | Walker & Dunlop — | 7,887 | ||||||||||||
| 1,539 | Walter Investment Management - REIT | 39,029 | ||||||||||||
| 908 | Washington Banking | 10,733 | ||||||||||||
| 3,930 | Washington Real Estate Investment Trust - REIT q | 113,813 | ||||||||||||
| 850 | Washington Trust Bancorp | 19,958 | ||||||||||||
| 4,294 | Webster Financial | 84,334 | ||||||||||||
| 1,463 | WesBanco | 29,055 | ||||||||||||
| 945 | West Bancorporation | 9,299 | ||||||||||||
| 1,112 | West Coast Bancorp — q | 16,602 | ||||||||||||
| 1,687 | Westamerica Bancorporation q | 75,611 | ||||||||||||
| 62 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Financials (continued) | ||||||||||||||
| 4,069 | Western Alliance Bancorp — q | $ | 26,448 | |||||||||||
| 1,623 | Westfield Financial | 11,540 | ||||||||||||
| 361 | Westwood Holdings | 13,227 | ||||||||||||
| 434 | Whitestone - REIT | 5,078 | ||||||||||||
| 3,610 | Wilshire Bancorp — q | 12,346 | ||||||||||||
| 1,684 | Winthrop Realty Trust - REIT | 15,240 | ||||||||||||
| 2,084 | Wintrust Financial q | 60,186 | ||||||||||||
| 916 | World Acceptance — q | 61,967 | ||||||||||||
| 376 | WSFS Financial | 14,946 | ||||||||||||
Total Financials | 14,372,987 | |||||||||||||
Health Care – 11.4% | ||||||||||||||
| 1,335 | Abaxis — | 37,460 | ||||||||||||
| 1,889 | ABIOMED — q | 28,448 | ||||||||||||
| 3,250 | Accelrys — | 21,548 | ||||||||||||
| 2,385 | Accretive Health — q | 56,787 | ||||||||||||
| 4,076 | Accuray — q | 16,304 | ||||||||||||
| 2,828 | Achillion Pharmaceuticals — q | 17,930 | ||||||||||||
| 2,353 | Acorda Therapeutics — | 51,390 | ||||||||||||
| 622 | Acura Pharmaceuticals — q | 2,762 | ||||||||||||
| 537 | Aegerion Pharmaceuticals — | 7,029 | ||||||||||||
| 2,048 | Affymax — | 10,895 | ||||||||||||
| 4,311 | Affymetrix — | 24,098 | ||||||||||||
| 665 | Air Methods — q | 53,745 | ||||||||||||
| 3,343 | Akorn — | 30,054 | ||||||||||||
| 1,421 | Albany Molecular Research — q | 4,561 | ||||||||||||
| 3,656 | Align Technology — | 84,198 | ||||||||||||
| 650 | Alimera Sciences — q | 4,622 | ||||||||||||
| 1,601 | Alliance Imaging — | 1,777 | ||||||||||||
| 5,684 | Alkermes — q | 99,413 | ||||||||||||
| 4,665 | Allos Therapeutics — | 6,858 | ||||||||||||
| 486 | Almost Family — | 9,059 | ||||||||||||
| 2,197 | Alnylam Pharmaceuticals — q | 17,840 | ||||||||||||
| 3,121 | Alphatec Holdings — | 6,460 | ||||||||||||
| 1,268 | AMAG Pharmaceuticals — q | 17,891 | ||||||||||||
| 1,730 | Amedisys — q | 22,715 | ||||||||||||
| 919 | American Dental Partners — | 9,705 | ||||||||||||
| 913 | Amicus Therapeutics — | 3,004 | ||||||||||||
| 2,360 | AMN Healthcare Services — | 11,186 | ||||||||||||
| 1,181 | Ampio Pharmaceuticals — q | 8,397 | ||||||||||||
| 1,863 | Amsurg, Class A — | 47,190 | ||||||||||||
| 1,021 | Amyris — q | 20,931 | ||||||||||||
| 709 | Anacor Pharmaceuticals — | 4,800 | ||||||||||||
| 748 | Analogic | 40,452 | ||||||||||||
| 1,490 | AngioDynamics — | 22,961 | ||||||||||||
| 5,227 | Antares Pharma — q | 11,865 | ||||||||||||
| Nuveen Investments | 63 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 1,236 | Anthera Pharmaceuticals — | $ | 7,898 | |||||||||||
| 1,000 | Ardea Biosciences — q | 19,910 | ||||||||||||
| 8,697 | Arena Pharmaceuticals — q | 12,263 | ||||||||||||
| 7,869 | Ariad Pharmaceuticals — q | 91,516 | ||||||||||||
| 3,132 | ArQule — q | 18,197 | ||||||||||||
| 3,346 | Array BioPharma — | 8,064 | ||||||||||||
| 1,629 | ArthroCare — q | 49,114 | ||||||||||||
| 1,168 | Assisted Living Concepts, Class A — | 16,597 | ||||||||||||
| 3,603 | Astex Pharmaceuticals — | 6,954 | ||||||||||||
| 2,079 | Athenahealth — q | 110,000 | ||||||||||||
| 813 | AtriCure — | 9,073 | ||||||||||||
| 93 | Atrion | 20,925 | ||||||||||||
| 2,852 | Auxilium Pharmaceuticals — q | 44,377 | ||||||||||||
| 7,397 | AVANIR Pharmaceuticals — q | 22,117 | ||||||||||||
| 1,868 | Aveo Pharmaceuticals — q | 30,000 | ||||||||||||
| 7,965 | AVI BioPharma — q | 7,806 | ||||||||||||
| 1,292 | Bacterin International Holdings — q | 4,277 | ||||||||||||
| 445 | BG Medicine — q | 2,176 | ||||||||||||
| 1,713 | BioCryst Pharmaceuticals — | 5,259 | ||||||||||||
| 1,807 | Biolase Technology — q | 6,577 | ||||||||||||
| 1,111 | Biomimetic Therapeutics — | 3,600 | ||||||||||||
| 1,446 | Bio-Reference Laboratories — q | 28,978 | ||||||||||||
| 6,532 | BioSante Pharmaceuticals — q | 17,310 | ||||||||||||
| 2,551 | BioScrip — | 16,582 | ||||||||||||
| 287 | Biospecifics Technologies — | 4,879 | ||||||||||||
| 1,496 | BioTime — q | 6,747 | ||||||||||||
| 2,266 | Cadence Pharmaceuticals — q | 13,211 | ||||||||||||
| 2,768 | Caliper Life Sciences — q | 29,009 | ||||||||||||
| 1,692 | Cambrex — | 9,323 | ||||||||||||
| 775 | Cantel Medical | 21,390 | ||||||||||||
| 1,593 | Capital Senior Living — | 12,441 | ||||||||||||
| 1,428 | Cardionet — | 4,041 | ||||||||||||
| 768 | Cardiovascular Systems — | 6,359 | ||||||||||||
| 11,317 | Cell Therapeutics — q | 14,486 | ||||||||||||
| 2,595 | Celldex Therapeutics — q | 8,330 | ||||||||||||
| 2,979 | Centene — | 104,712 | ||||||||||||
| 3,682 | Cepheid — q | 132,110 | ||||||||||||
| 2,789 | Cerus — q | 7,447 | ||||||||||||
| 3,193 | Chelsea Therapeutics International — q | 14,464 | ||||||||||||
| 1,231 | Chemed | 73,072 | ||||||||||||
| 812 | Chindex International — | 9,021 | ||||||||||||
| 1,663 | Cleveland Biolabs — q | 4,939 | ||||||||||||
| 1,420 | Codexis — | 6,546 | ||||||||||||
| 4,245 | Columbia Labs — q | 10,740 | ||||||||||||
| 575 | Complete Genomics — | 3,277 | ||||||||||||
| 64 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 650 | Computer Programs & Systems q | $ | 33,195 | |||||||||||
| 1,861 | Conceptus — q | 21,439 | ||||||||||||
| 1,688 | CONMED — | 44,344 | ||||||||||||
| 2,377 | Corcept Therapeutics — | 7,535 | ||||||||||||
| 466 | Cornerstone Therapeutics — | 2,857 | ||||||||||||
| 358 | Corvel — | 18,462 | ||||||||||||
| 1,784 | Cross Country Healthcare — | 8,920 | ||||||||||||
| 1,618 | CryoLife — | 7,459 | ||||||||||||
| 3,573 | Cubist Pharmaceuticals — q | 135,095 | ||||||||||||
| 4,487 | Curis — q | 16,512 | ||||||||||||
| 1,667 | Cyberonics — | 48,010 | ||||||||||||
| 568 | Cynosure — | 6,913 | ||||||||||||
| 2,887 | Cytori Therapeutics — q | 8,748 | ||||||||||||
| 2,819 | Delcath Systems — q | 10,205 | ||||||||||||
| 3,199 | DepoMed — | 14,332 | ||||||||||||
| 3,999 | DexCom — | 39,150 | ||||||||||||
| 5,012 | Durect — | 7,969 | ||||||||||||
| 1,413 | DUSA Pharmaceuticals — | 6,359 | ||||||||||||
| 5,745 | Dyax — | 7,756 | ||||||||||||
| 7,357 | Dynavax Technologies — q | 20,011 | ||||||||||||
| 556 | Dynavox — | 1,879 | ||||||||||||
| 1,452 | Emergent Biosolutions — | 27,385 | ||||||||||||
| 1,822 | Emeritus — | 32,268 | ||||||||||||
| 1,011 | Endocyte — q | 9,817 | ||||||||||||
| 2,945 | Endologix — q | 32,071 | ||||||||||||
| 944 | Ensign Group | 21,485 | ||||||||||||
| 2,214 | Enzo Biochem — | 6,332 | ||||||||||||
| 2,396 | Enzon Pharmaceuticals — q | 17,611 | ||||||||||||
| 2,839 | eResearchTechnology — | 14,507 | ||||||||||||
| 3,113 | Exact Sciences — q | 24,748 | ||||||||||||
| 498 | Exactech — | 7,968 | ||||||||||||
| 1,613 | Examworks Group — q | 17,017 | ||||||||||||
| 7,621 | Exelixis — q | 58,910 | ||||||||||||
| 2,463 | Five Star Quality Care — | 6,379 | ||||||||||||
| 374 | Fluidigm — | 5,221 | ||||||||||||
| 580 | Furiex Pharmaceuticals — | 8,236 | ||||||||||||
| 1,014 | Genomic Health — q | 21,700 | ||||||||||||
| 1,795 | Gentiva Health Services — | 7,431 | ||||||||||||
| 7,689 | Geron — q | 18,069 | ||||||||||||
| 1,414 | Greatbatch — | 31,575 | ||||||||||||
| 1,285 | GTx — | 5,641 | ||||||||||||
| 1,530 | Haemonetics — | 93,253 | ||||||||||||
| 4,891 | Halozyme Therapeutics — q | 41,231 | ||||||||||||
| 1,996 | Hanger Orthopedic Group — | 34,671 | ||||||||||||
| 2,794 | Hansen Medical — q | 8,773 | ||||||||||||
| Nuveen Investments | 65 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 1,333 | Harvard Bioscience — | $ | 6,078 | |||||||||||
| 5,670 | HealthSouth — q | 100,132 | ||||||||||||
| 4,040 | Healthspring — | 217,918 | ||||||||||||
| 889 | HealthStream — q | 13,495 | ||||||||||||
| 2,044 | Healthways — | 14,635 | ||||||||||||
| 717 | Heartware International — q | 48,706 | ||||||||||||
| 617 | Hi-Tech Pharmaceutical — | 21,916 | ||||||||||||
| 4,975 | HMS Holdings — | 121,589 | ||||||||||||
| 328 | Horizon Pharma — q | 2,949 | ||||||||||||
| 724 | ICU Medical — | 28,460 | ||||||||||||
| 3,268 | Idenix Pharmaceuticals — | 19,608 | ||||||||||||
| 4,477 | ImmunoGen — q | 60,798 | ||||||||||||
| 3,946 | Immunomedics — q | 14,363 | ||||||||||||
| 3,892 | Impax Laboratories — q | 73,598 | ||||||||||||
| 5,273 | Incyte — q | 72,609 | ||||||||||||
| 4,270 | Indevus Pharmaceuticals, escrow shares — | — | ||||||||||||
| 1,093 | Infinity Pharmaceuticals — q | 8,274 | ||||||||||||
| 3,790 | Inhibitex — q | 14,743 | ||||||||||||
| 1,437 | Insmed — q | 5,073 | ||||||||||||
| 2,740 | Insulet — q | 44,717 | ||||||||||||
| 1,224 | Integra LifeSciences — | 39,241 | ||||||||||||
| 3,220 | InterMune — q | 82,110 | ||||||||||||
| 1,709 | Invacare | 38,367 | ||||||||||||
| 976 | IPC The Hospitalist — | 40,924 | ||||||||||||
| 1,070 | IRIS International — | 9,694 | ||||||||||||
| 3,006 | Ironwood Pharmaceuticals — q | 40,882 | ||||||||||||
| 5,936 | Isis Pharmaceuticals — q | 49,209 | ||||||||||||
| 1,882 | ISTA Pharmaceuticals — | 7,791 | ||||||||||||
| 1,317 | Jazz Pharmaceuticals — q | 51,310 | ||||||||||||
| 597 | Kensey Nash — | 16,047 | ||||||||||||
| 4,118 | Keryx Biopharmaceuticals — q | 12,889 | ||||||||||||
| 3,097 | Kindred Healthcare — | 36,080 | ||||||||||||
| 2,979 | K-V Pharmaceutical, Class A — q | 3,307 | ||||||||||||
| 548 | Landauer | 28,085 | ||||||||||||
| 939 | Lannett — | 3,841 | ||||||||||||
| 10,165 | Lexicon Pharmaceuticals — q | 12,300 | ||||||||||||
| 925 | LHC Group — q | 14,513 | ||||||||||||
| 1,151 | Ligand Pharmaceuticals — | 16,920 | ||||||||||||
| 2,253 | Luminex — q | 49,476 | ||||||||||||
| 1,913 | Magellan Health Services — | 98,462 | ||||||||||||
| 1,907 | Mako Surgical — q | 73,324 | ||||||||||||
| 4,604 | MannKind — q | 14,364 | ||||||||||||
| 1,304 | Map Pharmaceuticals — | 19,273 | ||||||||||||
| 3,131 | Masimo q | 64,749 | ||||||||||||
| 1,773 | Maxygen — | 10,461 | ||||||||||||
| 66 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 2,841 | MedAssets — | $ | 30,285 | |||||||||||
| 948 | Medical Action Industries — | 4,968 | ||||||||||||
| 3,217 | Medicines — | 60,222 | ||||||||||||
| 3,680 | Medicis Pharmaceutical, Class A q | 140,907 | ||||||||||||
| 1,255 | Medidata Solutions — | 22,565 | ||||||||||||
| 1,868 | Medivation — | 32,092 | ||||||||||||
| 1,830 | MedQuist Holdings — q | 15,647 | ||||||||||||
| 438 | MEDTOX Scientific | 6,412 | ||||||||||||
| 3,064 | Merge Healthcare — | 20,222 | ||||||||||||
| 2,470 | Meridian Bioscience q | 45,003 | ||||||||||||
| 2,497 | Merit Medical Systems — | 33,510 | ||||||||||||
| 2,030 | Metabolix — q | 10,414 | ||||||||||||
| 2,536 | Metropolitan Health Networks — q | 16,535 | ||||||||||||
| 5,457 | Micromet — q | 35,852 | ||||||||||||
| 1,673 | Molina Healthcare — | 35,434 | ||||||||||||
| 2,750 | Momenta Pharmaceuticals — q | 40,700 | ||||||||||||
| 737 | MWI Veterinary Supply — | 55,644 | ||||||||||||
| 2,656 | NABI Biopharmaceuticals — | 4,887 | ||||||||||||
| 600 | National Healthcare q | 22,986 | ||||||||||||
| 97 | National Research | 3,240 | ||||||||||||
| 1,707 | Natus Medical — | 14,680 | ||||||||||||
| 6,800 | Nektar Therapeutics — q | 36,856 | ||||||||||||
| 1,382 | Neogen — | 53,414 | ||||||||||||
| 5,640 | Neoprobe — q | 16,018 | ||||||||||||
| 2,675 | Neostem — q | 1,792 | ||||||||||||
| 2,909 | Neurocrine Biosciences — | 18,210 | ||||||||||||
| 5,637 | Novavax — q | 8,906 | ||||||||||||
| 5,127 | NPS Pharmaceuticals — | 26,507 | ||||||||||||
| 2,365 | NuVasive — q | 35,049 | ||||||||||||
| 2,661 | NxStage Medical — q | 61,176 | ||||||||||||
| 1,156 | Nymox Pharmaceutical — q | 10,670 | ||||||||||||
| 1,073 | Obagi Medical Products — | 10,129 | ||||||||||||
| 1,944 | Omnicell — | 29,063 | ||||||||||||
| 562 | OncoGenex Pharmaceuticals — | 6,519 | ||||||||||||
| 2,479 | Oncothyreon — q | 17,254 | ||||||||||||
| 3,776 | Onyx Pharmaceuticals — | 154,552 | ||||||||||||
| 6,492 | Opko Health — q | 34,927 | ||||||||||||
| 2,763 | Optimer Pharmaceuticals — q | 39,428 | ||||||||||||
| 2,740 | OraSure Technologies — | 25,455 | ||||||||||||
| 1,802 | Orexigen Therapeutics — | 3,946 | ||||||||||||
| 1,076 | Orthofix International — | 37,778 | ||||||||||||
| 1,022 | Osiris Therapeutics — | 5,478 | ||||||||||||
| 3,799 | Owens & Minor q | 113,666 | ||||||||||||
| 2,022 | Pacific Biosciences — q | 7,926 | ||||||||||||
| 283 | Pacira Pharmaceuticals — | 2,768 | ||||||||||||
| Nuveen Investments | 67 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 2,165 | Pain Therapeutics — q | $ | 9,634 | |||||||||||
| 1,115 | Palomar Medical Technologies — | 9,489 | ||||||||||||
| 2,124 | Par Pharmaceutical Companies — | 64,994 | ||||||||||||
| 3,510 | PAREXEL — | 77,325 | ||||||||||||
| 8,326 | PDL BioPharma q | 50,539 | ||||||||||||
| 3,993 | Peregrine Pharmaceuticals — | 4,193 | ||||||||||||
| 190 | Pernix Therapeutics Holdings — | 2,033 | ||||||||||||
| 2,737 | Pharmacyclics — q | 36,046 | ||||||||||||
| 2,064 | Pharmathene — q | 3,509 | ||||||||||||
| 1,751 | Pharmerica — | 27,316 | ||||||||||||
| 1,514 | POZEN — | 3,861 | ||||||||||||
| 1,722 | Progenics Pharmaceutical — | 11,314 | ||||||||||||
| 748 | Provident Financial Services — q | 9,350 | ||||||||||||
| 3,307 | PSS World Medical — q | 73,581 | ||||||||||||
| 2,310 | Quality Systems | 89,882 | ||||||||||||
| 3,165 | Questcor Pharmaceuticals — | 128,531 | ||||||||||||
| 1,698 | Quidel — q | 30,326 | ||||||||||||
| 1,765 | Radnet — | 4,536 | ||||||||||||
| 2,804 | Raptor Pharmaceutical — q | 13,852 | ||||||||||||
| 4,088 | Rigel Pharmaceuticals — | 32,091 | ||||||||||||
| 928 | Rockwell Medical Technologies — q | 7,823 | ||||||||||||
| 3,288 | RTI Biologics — | 14,796 | ||||||||||||
| 384 | Sagent Pharmaceuticals — q | 9,811 | ||||||||||||
| 3,482 | Salix Pharmaceuticals — q | 119,276 | ||||||||||||
| 3,078 | Sangamo BioSciences — q | 10,219 | ||||||||||||
| 3,161 | Santarus — q | 9,641 | ||||||||||||
| 4,179 | Savient Pharmaceuticals — q | 15,671 | ||||||||||||
| 2,178 | Sciclone Pharmaceuticals — | 9,169 | ||||||||||||
| 5,752 | Seattle Genetics — q | 126,544 | ||||||||||||
| 2,588 | Select Medical Holdings — q | 22,516 | ||||||||||||
| 2,291 | Senomyx — q | 10,447 | ||||||||||||
| 5,905 | Sequenom — q | 29,348 | ||||||||||||
| 2,128 | SIGA Technologies — q | 6,895 | ||||||||||||
| 1,215 | Skilled Healthcare Group, Class A — | 4,593 | ||||||||||||
| 6,113 | Solta Medical — | 13,387 | ||||||||||||
| 813 | SonoSite — q | 25,195 | ||||||||||||
| 1,929 | Spectranetics — | 15,123 | ||||||||||||
| 3,102 | Spectrum Pharmaceuticals — q | 34,401 | ||||||||||||
| 2,118 | Staar Surgical — | 19,062 | ||||||||||||
| 2,553 | Stereotaxis — q | 2,961 | ||||||||||||
| 3,531 | STERIS q | 109,390 | ||||||||||||
| 756 | Sucampo Pharmaceuticals — | 3,326 | ||||||||||||
| 1,472 | Sun Healthcare Group — | 3,857 | ||||||||||||
| 1,647 | Sunesis Pharmaceuticals — q | 2,223 | ||||||||||||
| 3,421 | Sunrise Senior Living — q | 18,815 | ||||||||||||
| 68 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Health Care (continued) | ||||||||||||||
| 939 | SurModics — | $ | 9,897 | |||||||||||
| 2,183 | Symmetry Medical — | 19,843 | ||||||||||||
| 1,287 | Synergetics USA — | 8,610 | ||||||||||||
| 676 | Synovis Life Technologies — | 12,141 | ||||||||||||
| 1,495 | Synta Pharmaceuticals — q | 5,531 | ||||||||||||
| 1,643 | Targacept — q | 28,917 | ||||||||||||
| 1,589 | Team Health Holdings — | 32,288 | ||||||||||||
| 4,111 | Theravance — q | 91,388 | ||||||||||||
| 609 | Tornier NV — q | 14,153 | ||||||||||||
| 542 | Transcend Services — | 14,813 | ||||||||||||
| 318 | Transcept Pharmaceuticals — | 2,773 | ||||||||||||
| 1,144 | Triple-S Management — q | 21,736 | ||||||||||||
| 368 | Trius Therapeutics — | 2,521 | ||||||||||||
| 704 | U.S. Physical Therapy — | 13,742 | ||||||||||||
| 3,387 | Unilife — q | 17,951 | ||||||||||||
| 1,898 | Universal American Spin — | 21,827 | ||||||||||||
| 1,195 | Uroplasty — | 5,389 | ||||||||||||
| 1,626 | Vanda Pharmaceuticals — | 9,447 | ||||||||||||
| 1,817 | Vanguard Health Systems — q | 17,661 | ||||||||||||
| 987 | Vascular Solutions — | 10,472 | ||||||||||||
| 4,217 | Vical — q | 12,609 | ||||||||||||
| 4,528 | ViroPharma — | 91,647 | ||||||||||||
| 5,297 | Vivus — q | 49,951 | ||||||||||||
| 3,108 | Volcano — | 77,482 | ||||||||||||
| 2,538 | WellCare Health Plans — | 124,387 | ||||||||||||
| 1,996 | West Pharmaceutical Services q | 77,585 | ||||||||||||
| 2,320 | Wright Medical Group — | 39,881 | ||||||||||||
| 2,047 | XenoPort — q | 12,487 | ||||||||||||
| 332 | Young Innovations | 9,545 | ||||||||||||
| 4,304 | Zalicus — q | 6,327 | ||||||||||||
| 3,514 | Ziopharm Oncology — q | 17,254 | ||||||||||||
| 1,261 | Zogenix — | 2,560 | ||||||||||||
| 1,306 | Zoll Medical — q | 49,380 | ||||||||||||
Total Health Care | 8,281,956 | |||||||||||||
Industrials – 14.1% | ||||||||||||||
| 2,498 | 3D Systems — q | 40,642 | ||||||||||||
| 2,266 | A.O. Smith q | 84,205 | ||||||||||||
| 554 | A.T. Cross — | 6,737 | ||||||||||||
| 5,264 | A123 Systems — q | 18,056 | ||||||||||||
| 1,120 | AAON q | 23,710 | ||||||||||||
| 2,360 | AAR | �� | 47,035 | |||||||||||
| 3,161 | ABM Industries | 63,915 | ||||||||||||
| 2,550 | Acacia Research — | 101,592 | ||||||||||||
| 3,327 | ACCO Brands — | 22,856 | ||||||||||||
| 2,411 | Accuride — q | 15,238 | ||||||||||||
| Nuveen Investments | 69 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 1,587 | Aceto | $ | 10,062 | |||||||||||
| 4,630 | Active Power — q | 4,220 | ||||||||||||
| 4,089 | Actuant, Class A | 92,003 | ||||||||||||
| 2,582 | Acuity Brands q | 119,547 | ||||||||||||
| 945 | Advisory Board — | 57,881 | ||||||||||||
| 2,317 | Aegion — | 34,268 | ||||||||||||
| 1,183 | Aeroflex Holding — q | 12,883 | ||||||||||||
| 1,008 | AeroVironment — q | 33,294 | ||||||||||||
| 3,389 | Air Transport Services Group — | 18,775 | ||||||||||||
| 3,461 | Aircastle | 41,982 | ||||||||||||
| 388 | Alamo Group | 9,254 | ||||||||||||
| 2,074 | Alaska Air Group — q | 137,983 | ||||||||||||
| 1,727 | Albany International, Class A | 39,013 | ||||||||||||
| 856 | Allegiant Travel — q | 44,478 | ||||||||||||
| 1,627 | Altra Holdings — q | 23,917 | ||||||||||||
| 516 | Amerco — | 39,066 | ||||||||||||
| 1,023 | Ameresco, Class A — q | 11,243 | ||||||||||||
| 564 | American Railcar Industries — | 12,442 | ||||||||||||
| 2,208 | American Reprographics — | 8,810 | ||||||||||||
| 526 | American Science & Engineering | 35,779 | ||||||||||||
| 2,662 | American Superconductor — q | 11,606 | ||||||||||||
| 537 | American Woodmark | 9,134 | ||||||||||||
| 508 | Ampco-Pittsburgh | 10,663 | ||||||||||||
| 1,682 | Apogee Enterprises q | 18,367 | ||||||||||||
| 2,526 | Applied Industrial Technology | 84,924 | ||||||||||||
| 451 | Argan — | 6,134 | ||||||||||||
| 1,515 | Arkansas Best | 31,209 | ||||||||||||
| 1,170 | Astec Industries — | 38,903 | ||||||||||||
| 604 | Astronics — q | 18,362 | ||||||||||||
| 1,566 | Atlas Air Worldwide Holdings — q | 60,322 | ||||||||||||
| 6,259 | Avis Budget Group — | 88,252 | ||||||||||||
| 741 | AZZ | 33,093 | ||||||||||||
| 904 | Badger Meter q | 29,597 | ||||||||||||
| 969 | Baltic Trading Limited q | 5,388 | ||||||||||||
| 3,247 | Barnes Group | 75,558 | ||||||||||||
| 467 | Barrett Business Services | 7,411 | ||||||||||||
| 2,741 | Beacon Roofing Supply — q | 50,517 | ||||||||||||
| 2,825 | Belden | 91,191 | ||||||||||||
| 2,900 | Blount International — | 45,037 | ||||||||||||
| 2,831 | Brady, Class A | 86,968 | ||||||||||||
| 3,007 | Briggs & Stratton q | 43,902 | ||||||||||||
| 2,782 | Brinks q | 77,312 | ||||||||||||
| 8,328 | Broadwind Energy — q | 3,419 | ||||||||||||
| 2,566 | Builders FirstSource — | 4,183 | ||||||||||||
| 701 | CAI International — | 10,943 | ||||||||||||
| 70 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 19,757 | Capstone Turbine — q | $ | 21,535 | |||||||||||
| 547 | Cascade | 23,576 | ||||||||||||
| 1,480 | Casella Waste Systems — | 9,294 | ||||||||||||
| 2,280 | CBIZ — q | 14,432 | ||||||||||||
| 722 | CDI | 9,480 | ||||||||||||
| 1,347 | Celadon Group | 14,830 | ||||||||||||
| 3,266 | Cenveo — q | 12,248 | ||||||||||||
| 1,484 | Ceradyne — | 49,655 | ||||||||||||
| 1,750 | Chart Industries — q | 98,893 | ||||||||||||
| 371 | Chase | 5,194 | ||||||||||||
| 1,028 | CIRCOR International | 35,795 | ||||||||||||
| 3,006 | CLARCOR | 145,731 | ||||||||||||
| 2,792 | Clean Harbors — q | 162,690 | ||||||||||||
| 485 | Coleman Cable — q | 4,932 | ||||||||||||
| 1,466 | Colfax — q | 37,031 | ||||||||||||
| 1,161 | Columbus McKinnon — | 17,403 | ||||||||||||
| 2,193 | Comfort Systems USA | 24,123 | ||||||||||||
| 1,716 | Commercial Vehicle Group — | 18,927 | ||||||||||||
| 66 | CompX International | 1,007 | ||||||||||||
| 521 | Consolidated Graphics — | 23,737 | ||||||||||||
| 2,058 | Corporate Executive Board | 75,302 | ||||||||||||
| 1,507 | CoStar Group — q | 92,726 | ||||||||||||
| 621 | Courier | 5,396 | ||||||||||||
| 484 | Covenant Transport, Class A — | 1,554 | ||||||||||||
| 627 | CRA International — | 12,114 | ||||||||||||
| 942 | Cubic | 44,387 | ||||||||||||
| 2,768 | Curtiss-Wright | 90,735 | ||||||||||||
| 3,065 | Deluxe | 72,395 | ||||||||||||
| 2,102 | DigitalGlobe — q | 42,881 | ||||||||||||
| 1,724 | Dollar Thrifty Automotive — | 105,233 | ||||||||||||
| 1,079 | Douglas Dynamics | 16,207 | ||||||||||||
| 619 | Ducommun — | 8,833 | ||||||||||||
| 502 | DXP Enterprises — | 12,540 | ||||||||||||
| 2,100 | Dycom Industries — | 40,803 | ||||||||||||
| 783 | Dynamic Materials | 16,991 | ||||||||||||
| 3,779 | Eagle Bulk Shipping — q | 5,857 | ||||||||||||
| 3,985 | EMCOR Group | 99,904 | ||||||||||||
| 1,130 | Encore Wire | 30,035 | ||||||||||||
| 2,686 | Energy Recovery — q | 8,246 | ||||||||||||
| 4,758 | EnergySolutions | 17,938 | ||||||||||||
| 1,387 | EnerNOC — q | 12,303 | ||||||||||||
| 2,994 | EnerSys — | 67,455 | ||||||||||||
| 1,536 | Ennis | 22,472 | ||||||||||||
| 1,233 | EnPro Industries — | 42,465 | ||||||||||||
| 1,586 | ESCO Technologies — | 48,484 | ||||||||||||
| Nuveen Investments | 71 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 2,262 | Essex Rent — | $ | 6,447 | |||||||||||
| 1,817 | Esterline Technologies — | 101,570 | ||||||||||||
| 2,646 | Excel Maritime Carriers — q | 7,515 | ||||||||||||
| 836 | Exponent — | 40,278 | ||||||||||||
| 3,694 | Federal Signal q | 17,436 | ||||||||||||
| 2,777 | Flow International — | 7,192 | ||||||||||||
| 4,329 | Force Protection — | 15,931 | ||||||||||||
| 1,752 | Forward Air q | 57,378 | ||||||||||||
| 777 | Franklin Covey — | 7,490 | ||||||||||||
| 1,406 | Franklin Electric | 64,564 | ||||||||||||
| 728 | FreightCar America | 13,796 | ||||||||||||
| 2,434 | FTI Consulting — q | 95,924 | ||||||||||||
| 7,405 | FuelCell Energy — q | 7,923 | ||||||||||||
| 1,106 | Fuel-Tech — | 6,127 | ||||||||||||
| 2,202 | Furmanite — | 14,687 | ||||||||||||
| 1,115 | G&K Services, Class A | 33,851 | ||||||||||||
| 1,762 | Genco Shipping & Trading — q | 15,858 | ||||||||||||
| 3,471 | GenCorp — q | 16,869 | ||||||||||||
| 1,487 | Generac Holdings — q | 33,993 | ||||||||||||
| 2,361 | Genesee & Wyoming, Class A — q | 139,795 | ||||||||||||
| 3,868 | Geo Group — | 70,514 | ||||||||||||
| 1,310 | GeoEye — q | 43,977 | ||||||||||||
| 1,796 | Gibraltar Industries | 20,043 | ||||||||||||
| 940 | Global Power Equipment Group — q | 24,919 | ||||||||||||
| 906 | Gorman-Rupp q | 24,344 | ||||||||||||
| 962 | GP Strategies — | 11,371 | ||||||||||||
| 584 | Graham | 13,455 | ||||||||||||
| 2,267 | Granite Construction | 51,008 | ||||||||||||
| 3,476 | Great Lakes Dredge & Dock | 17,901 | ||||||||||||
| 1,123 | Greenbrier Companies q | 20,899 | ||||||||||||
| 2,797 | Griffon — | 26,488 | ||||||||||||
| 1,704 | H & E Equipment Services — | 18,693 | ||||||||||||
| 3,147 | Hawaiian Holdings — q | 16,836 | ||||||||||||
| 3,956 | Healthcare Services Group | 68,637 | ||||||||||||
| 3,006 | Heartland Express q | 40,310 | ||||||||||||
| 2,486 | HEICO q | 141,752 | ||||||||||||
| 1,035 | Heidrick & Struggles International | 20,472 | ||||||||||||
| 275 | Heritage Crystal Clean — | 4,384 | ||||||||||||
| 3,415 | Herman Miller | 70,520 | ||||||||||||
| 5,838 | Hexcel — q | 144,257 | ||||||||||||
| 1,825 | Higher One Holdings — q | 32,193 | ||||||||||||
| 1,516 | Hill International — | 8,490 | ||||||||||||
| 2,683 | HNI q | 64,526 | ||||||||||||
| 1,077 | Houston Wire & Cable q | 13,753 | ||||||||||||
| 2,195 | Hub Group — | 68,616 | ||||||||||||
| 72 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 1,908 | Hudson Highland Group — | $ | 8,834 | |||||||||||
| 372 | Hurco — | 9,717 | ||||||||||||
| 1,324 | Huron Consulting Group — | 47,677 | ||||||||||||
| 1,154 | ICF International — | 26,981 | ||||||||||||
| 3,084 | II-VI — | 58,627 | ||||||||||||
| 1,501 | InnerWorkings — q | 13,584 | ||||||||||||
| 1,365 | Insperity q | 35,190 | ||||||||||||
| 1,068 | Insteel Industries | 11,011 | ||||||||||||
| 3,140 | Interface, Class A | 40,946 | ||||||||||||
| 1,931 | Interline Brands — | 28,772 | ||||||||||||
| 327 | International Shipholding | 6,651 | ||||||||||||
| 532 | Intersections | 8,985 | ||||||||||||
| 14,690 | JetBlue Airways — q | 65,811 | ||||||||||||
| 1,680 | John Bean Technologies | 27,115 | ||||||||||||
| 780 | Kadant — | 16,887 | ||||||||||||
| 1,563 | Kaman | 51,970 | ||||||||||||
| 1,943 | Kaydon q | 61,127 | ||||||||||||
| 1,564 | Kelly Services, Class A | 25,571 | ||||||||||||
| 1,067 | KEYW Holding — | 8,963 | ||||||||||||
| 2,010 | Kforce — | 25,648 | ||||||||||||
| 1,856 | Kimball International | 10,449 | ||||||||||||
| 3,580 | Knight Transportation q | 54,416 | ||||||||||||
| 2,837 | Knoll | 43,264 | ||||||||||||
| 2,800 | Korn Ferry International — | 44,716 | ||||||||||||
| 1,962 | Kratos Defense & Security Solutions — q | 12,419 | ||||||||||||
| 212 | Lawson Products | 3,534 | ||||||||||||
| 1,186 | Layne Christensen — | 29,875 | ||||||||||||
| 567 | LB Foster | 14,459 | ||||||||||||
| 751 | Lindsay Manufacturing q | 43,633 | ||||||||||||
| 545 | LMI Aerospace — | 10,960 | ||||||||||||
| 1,161 | LSI Industries q | 7,814 | ||||||||||||
| 1,012 | Lydall — | 11,092 | ||||||||||||
| 711 | M & F Worldwide — | 17,604 | ||||||||||||
| 1,002 | Marten Transport — | 17,745 | ||||||||||||
| 3,376 | MasTec — q | 72,989 | ||||||||||||
| 1,446 | McGrath Rentcorp | 38,637 | ||||||||||||
| 5,606 | Meritor — | 53,369 | ||||||||||||
| 816 | Met Pro | 7,352 | ||||||||||||
| 2,322 | Metalico — | 10,495 | ||||||||||||
| 479 | Michael Baker — | 9,858 | ||||||||||||
| 6,030 | Microvision — q | 4,282 | ||||||||||||
| 1,117 | Middleby — q | 94,141 | ||||||||||||
| 785 | Miller Industries — | 16,045 | ||||||||||||
| 1,602 | Mine Safety Appliances | 53,747 | ||||||||||||
| 856 | Mistras Group — | 18,661 | ||||||||||||
| Nuveen Investments | 73 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 2,191 | Mobile Mini — q | $ | 39,745 | |||||||||||
| 2,707 | Moog, Class A — | 104,842 | ||||||||||||
| 2,256 | Mueller Industries q | 91,255 | ||||||||||||
| 9,379 | Mueller Water Products, Class A q | 25,792 | ||||||||||||
| 668 | Multi Color | 17,709 | ||||||||||||
| 1,201 | MYR Group — q | 23,167 | ||||||||||||
| 345 | NACCO Industries, Class A | 28,325 | ||||||||||||
| 3,043 | Navigant Consulting — | 34,477 | ||||||||||||
| 1,158 | NCI Building Systems — q | 10,549 | ||||||||||||
| 972 | NN — | 8,592 | ||||||||||||
| 563 | Northwest Pipe — | 15,015 | ||||||||||||
| 4,271 | Odyssey Marine Exploration — q | 12,172 | ||||||||||||
| 2,828 | Old Dominion Freight Line — q | 103,420 | ||||||||||||
| 170 | Omega Flex — | 2,004 | ||||||||||||
| 2,203 | On Assignment — | 23,770 | ||||||||||||
| 3,482 | Orbital Sciences — q | 53,832 | ||||||||||||
| 1,618 | Orion Marine Group — | 10,986 | ||||||||||||
| 2,162 | Otter Tail q | 41,964 | ||||||||||||
| 1,963 | Pacer International — | 9,246 | ||||||||||||
| 482 | Park-Ohio Holdings — | 7,799 | ||||||||||||
| 355 | Patriot Transportation Holdings — | 8,165 | ||||||||||||
| 918 | Pike Electric — | 6,986 | ||||||||||||
| 1,046 | PMFG — q | 21,391 | ||||||||||||
| 525 | Powell Industries — | 17,645 | ||||||||||||
| 1,122 | Powersecure International — q | 4,769 | ||||||||||||
| 147 | Preformed Line Products q | 9,459 | ||||||||||||
| 1,592 | Primoris Services | 20,728 | ||||||||||||
| 1,505 | Quad/Graphics q | 29,679 | ||||||||||||
| 866 | Quality Distribution — q | 9,760 | ||||||||||||
| 2,259 | Quanex Building Products | 33,320 | ||||||||||||
| 1,371 | RailAmerica — q | 18,742 | ||||||||||||
| 5,853 | Rambus — q | 103,774 | ||||||||||||
| 1,077 | Raven Industries | 64,631 | ||||||||||||
| 1,307 | RBC Bearings — | 52,934 | ||||||||||||
| 2,828 | Republic Airways Holdings — | 7,353 | ||||||||||||
| 2,737 | Resources Connection | 30,353 | ||||||||||||
| 629 | Roadrunner Transportation Systems — | 10,498 | ||||||||||||
| 2,350 | Robbins & Myers | 105,022 | ||||||||||||
| 3,787 | Rollins | 82,481 | ||||||||||||
| 552 | RPX — q | 8,589 | ||||||||||||
| 4,039 | RSC Holdings — | 39,421 | ||||||||||||
| 1,931 | Rush Enterprises — | 37,268 | ||||||||||||
| 942 | Saia — | 12,576 | ||||||||||||
| 5,407 | Satcon Technology — q | 5,731 | ||||||||||||
| 689 | Sauer-Danfoss | 26,678 | ||||||||||||
| 74 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 703 | Schawk | $ | 9,483 | |||||||||||
| 931 | School Specialty — | 7,122 | ||||||||||||
| 18 | Seaboard | 39,564 | ||||||||||||
| 639 | SeaCube Container Leasing | 8,882 | ||||||||||||
| 2,480 | Simpson Manufacturing | 76,037 | ||||||||||||
| 3,060 | SkyWest | 41,035 | ||||||||||||
| 901 | Spirit Airlines — q | 14,830 | ||||||||||||
| 921 | Standard Parking — | 16,200 | ||||||||||||
| 744 | Standex International | 28,726 | ||||||||||||
| 4,741 | Steelcase, Class A q | 35,131 | ||||||||||||
| 955 | Sterling Construction — | 11,890 | ||||||||||||
| 1,194 | Sun Hydraulics | 34,339 | ||||||||||||
| 4,722 | Swift Transportation — | 42,026 | ||||||||||||
| 5,044 | Swisher Hygiene — q | 21,992 | ||||||||||||
| 2,494 | Sykes Enterprises — | 39,729 | ||||||||||||
| 1,310 | TAL International Group | 36,457 | ||||||||||||
| 3,668 | TASER International — q | 18,230 | ||||||||||||
| 1,148 | Team — | 28,711 | ||||||||||||
| 1,126 | Tecumseh Products, Class A — | 7,161 | ||||||||||||
| 2,190 | Teledyne Technologies — | 119,289 | ||||||||||||
| 1,136 | Tennant q | 43,952 | ||||||||||||
| 3,717 | Tetra Tech — | 81,142 | ||||||||||||
| 659 | Textainer Group Holdings q | 18,090 | ||||||||||||
| 579 | Thermon Group Holdings — q | 9,195 | ||||||||||||
| 2,507 | Titan International q | 56,408 | ||||||||||||
| 919 | Titan Machinery — q | 21,440 | ||||||||||||
| 745 | TMS International — | 6,400 | ||||||||||||
| 1,025 | TRC — | 4,479 | ||||||||||||
| 1,381 | Tredegar | 26,750 | ||||||||||||
| 940 | Trex — | 17,371 | ||||||||||||
| 1,524 | Trimas — | 29,703 | ||||||||||||
| 2,241 | Triumph Group q | 130,202 | ||||||||||||
| 2,642 | TrueBlue — | 34,927 | ||||||||||||
| 1,859 | Tutor Perini — | 27,011 | ||||||||||||
| 499 | Twin Disc | 19,411 | ||||||||||||
| 1,411 | Ultrapetrol Bahamas — q | 4,191 | ||||||||||||
| 816 | Unifi — | 6,324 | ||||||||||||
| 3,725 | United Rentals — q | 87,202 | ||||||||||||
| 2,742 | United Stationers q | 87,223 | ||||||||||||
| 635 | Unitek Global Services — | 2,965 | ||||||||||||
| 1,169 | Universal Forest Products | 32,814 | ||||||||||||
| 334 | Universal Truckload Services | 5,184 | ||||||||||||
| 9,657 | US Airways Group — q | 55,721 | ||||||||||||
| 1,107 | US Ecology | 19,992 | ||||||||||||
| 4,256 | USG — q | 39,411 | ||||||||||||
| Nuveen Investments | 75 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Industrials (continued) | ||||||||||||||
| 4,238 | Valence Technology — q | $ | 4,064 | |||||||||||
| 1,179 | Viad | 24,676 | ||||||||||||
| 1,136 | Vicor | 10,394 | ||||||||||||
| 246 | VSE | 5,983 | ||||||||||||
| 4,083 | Wabash National — | 28,173 | ||||||||||||
| 1,676 | Watsco q | 103,342 | ||||||||||||
| 1,793 | Watts Water Technologies, Class A | 56,462 | ||||||||||||
| 974 | WCA Waste — | 4,636 | ||||||||||||
| 2,612 | Werner Enterprises q | 61,904 | ||||||||||||
| 1,135 | Wesco Aircraft Holdings — q | 12,814 | ||||||||||||
| 3,665 | Woodward Governor | 124,170 | ||||||||||||
| 637 | Xerium Technologies — q | 6,599 | ||||||||||||
| 592 | Zipcar — q | 12,106 | ||||||||||||
Total Industrials | 10,293,934 | |||||||||||||
Information Technology – 15.5% | ||||||||||||||
| 1,992 | ACI Worldwide — q | 61,095 | ||||||||||||
| 711 | Active Network — | 9,556 | ||||||||||||
| 2,079 | Actuate — | 13,513 | ||||||||||||
| 4,838 | Acxiom — | 63,813 | ||||||||||||
| 3,855 | ADTRAN | 129,528 | ||||||||||||
| 2,475 | Advanced Analogic Technologies — | 10,791 | ||||||||||||
| 2,597 | Advanced Energy Industries — | 24,256 | ||||||||||||
| 1,926 | Advent Software — q | 52,772 | ||||||||||||
| 1,036 | Agilysys | 8,796 | ||||||||||||
| 850 | Alpha & Omega Semiconductor — | 7,182 | ||||||||||||
| 1,334 | American Software, Class A | 10,432 | ||||||||||||
| 6,226 | Amkor Technology — | 30,134 | ||||||||||||
| 555 | Amtech Systems — | 5,672 | ||||||||||||
| 3,903 | ANADIGICS — | 10,265 | ||||||||||||
| 885 | Anaren — | 16,930 | ||||||||||||
| 1,888 | Ancestry.com — q | 42,990 | ||||||||||||
| 1,727 | Anixter International — | 101,358 | ||||||||||||
| 3,776 | Applied Micro Circuits — | 25,450 | ||||||||||||
| 696 | Archipelago Learning — | 7,092 | ||||||||||||
| 7,378 | Arris Group — | 79,387 | ||||||||||||
| 5,088 | Aruba Networks — q | 120,535 | ||||||||||||
| 5,043 | Aspen Technology — | 87,446 | ||||||||||||
| 1,880 | ATMI — | 38,352 | ||||||||||||
| 3,598 | Aviat Networks — | 7,376 | ||||||||||||
| 1,765 | Avid Technology — | 10,943 | ||||||||||||
| 6,181 | Axcelis Technologies — | 8,653 | ||||||||||||
| 1,905 | AXT — | 8,953 | ||||||||||||
| 961 | Bankrate — q | 18,711 | ||||||||||||
| 690 | Bel Fuse | 12,337 | ||||||||||||
| 3,620 | Benchmark Electronics — | 49,739 | ||||||||||||
| 76 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 2,535 | Bigband Networks — | $ | 5,678 | |||||||||||
| 1,071 | Black Box | 29,977 | ||||||||||||
| 2,653 | Blackbaud | 74,364 | ||||||||||||
| 2,593 | Blue Coat Systems — | 41,747 | ||||||||||||
| 2,029 | Bottomline Technologies — | 49,284 | ||||||||||||
| 4,180 | Brightpoint — | 42,427 | ||||||||||||
| 1,344 | BroadSoft — q | 48,384 | ||||||||||||
| 3,922 | Brooks Automation — | 40,985 | ||||||||||||
| 1,402 | Cabot Microelectronics — | 54,005 | ||||||||||||
| 1,743 | CACI International, Class A — q | 95,673 | ||||||||||||
| 2,243 | Calix — q | 19,537 | ||||||||||||
| 1,736 | Callidus Software — | 9,826 | ||||||||||||
| 429 | Carbonite — q | 5,414 | ||||||||||||
| 487 | Cass Information Systems | 19,086 | ||||||||||||
| 2,888 | Cavium — q | 94,409 | ||||||||||||
| 1,374 | Ceva — | 42,690 | ||||||||||||
| 2,390 | Checkpoint Systems — | 31,667 | ||||||||||||
| 3,812 | CIBER — | 13,266 | ||||||||||||
| 3,948 | Cirrus Logic — | 65,695 | ||||||||||||
| 2,472 | Cognex q | 83,776 | ||||||||||||
| 1,495 | Coherent — q | 76,200 | ||||||||||||
| 1,434 | Cohu | 15,903 | ||||||||||||
| 385 | Communications Systems | 6,345 | ||||||||||||
| 2,626 | CommVault Systems — q | 111,815 | ||||||||||||
| 912 | Computer Task Group — | 11,646 | ||||||||||||
| 1,901 | comScore — | 40,130 | ||||||||||||
| 1,591 | Comtech Telecommunications | 52,678 | ||||||||||||
| 2,661 | Concur Technologies — q | 123,790 | ||||||||||||
| 1,757 | Constant Contact — | 35,562 | ||||||||||||
| 6,271 | Convergys — | 67,100 | ||||||||||||
| 701 | Convio — | 6,723 | ||||||||||||
| 660 | Cornerstone OnDemand — q | 9,511 | ||||||||||||
| 2,085 | Cray — | 13,198 | ||||||||||||
| 2,020 | CSG Systems International — | 28,765 | ||||||||||||
| 426 | CSR — | 4,822 | ||||||||||||
| 2,059 | CTS | 19,108 | ||||||||||||
| 1,819 | Cymer — | 79,036 | ||||||||||||
| 2,063 | Daktronics | 20,836 | ||||||||||||
| 874 | DDi | 8,032 | ||||||||||||
| 2,451 | DealerTrack Holdings — | 53,162 | ||||||||||||
| 1,303 | Deltek — | 9,590 | ||||||||||||
| 460 | Demand Media — | 3,206 | ||||||||||||
| 1,870 | DemandTec — | 14,137 | ||||||||||||
| 1,634 | DG Fastchannel — q | 30,458 | ||||||||||||
| 894 | Dialogic — | 1,851 | ||||||||||||
| Nuveen Investments | 77 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 2,888 | Dice Holdings — | $ | 29,400 | |||||||||||
| 1,500 | Digi International — | 19,185 | ||||||||||||
| 400 | Digimarc — | 10,700 | ||||||||||||
| 2,363 | Digital River — | 43,314 | ||||||||||||
| 2,106 | Diodes — q | 47,111 | ||||||||||||
| 3,269 | Dot Hill Systems — | 5,623 | ||||||||||||
| 1,396 | DSP Group — | 8,627 | ||||||||||||
| 1,038 | DTS — | 29,157 | ||||||||||||
| 517 | Dynamics Research — | 4,984 | ||||||||||||
| 6,366 | EarthLink | 44,626 | ||||||||||||
| 1,779 | Ebix — q | 30,439 | ||||||||||||
| 2,060 | Echelon — q | 13,926 | ||||||||||||
| 631 | Echo Global Logistics — q | 9,743 | ||||||||||||
| 1,187 | Electro Rent | 19,075 | ||||||||||||
| 1,347 | Electro Scientific Industries — | 16,555 | ||||||||||||
| 2,782 | Electronics For Imaging — | 41,730 | ||||||||||||
| 488 | Ellie Mae — | 2,489 | ||||||||||||
| 1,004 | Emagin — | 4,237 | ||||||||||||
| 5,294 | Emcore — | 5,241 | ||||||||||||
| 5,232 | Emulex — | 43,844 | ||||||||||||
| 8,009 | Entegris — | 71,761 | ||||||||||||
| 5,131 | Entropic Communications — q | 29,862 | ||||||||||||
| 1,108 | Envestnet — q | 12,897 | ||||||||||||
| 1,817 | EPIQ Systems q | 25,910 | ||||||||||||
| 224 | ePlus — | 6,084 | ||||||||||||
| 370 | Epocrates — | 3,219 | ||||||||||||
| 3,052 | Euronet Worldwide — q | 59,117 | ||||||||||||
| 2,107 | Exar — | 12,874 | ||||||||||||
| 911 | Exlservice Holdings — | 23,759 | ||||||||||||
| 5,489 | Extreme Networks — | 16,193 | ||||||||||||
| 1,216 | Fabrinet — q | 15,078 | ||||||||||||
| 2,374 | Fair Isaac | 64,929 | ||||||||||||
| 1,776 | FalconStor Software — | 6,021 | ||||||||||||
| 970 | FARO Technologies — | 40,527 | ||||||||||||
| 2,307 | FEI — | 91,726 | ||||||||||||
| 5,343 | Finisar — q | 109,478 | ||||||||||||
| 3,005 | FormFactor — | 17,970 | ||||||||||||
| 851 | Forrester Research — | 30,474 | ||||||||||||
| 325 | FriendFinder Networks — | 604 | ||||||||||||
| 2,282 | FSI International — q | 5,637 | ||||||||||||
| 3,733 | Global Cash Access Holdings — | 11,124 | ||||||||||||
| 1,297 | Globecomm Systems — | 17,626 | ||||||||||||
| 2,499 | Glu Mobile — q | 7,572 | ||||||||||||
| 1,496 | GSI Group — | 14,616 | ||||||||||||
| 1,167 | GSI Technology — | 5,718 | ||||||||||||
| 78 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 7,505 | GT Advanced Technologies — q | $ | 61,541 | |||||||||||
| 790 | Guidance Software — | 4,748 | ||||||||||||
| 2,232 | Hackett Group — | 9,218 | ||||||||||||
| 6,843 | Harmonic — | 37,636 | ||||||||||||
| 2,298 | Heartland Payment Systems | 50,004 | ||||||||||||
| 1,838 | Hittite Microwave — q | 96,679 | ||||||||||||
| 2,239 | Identive Group — q | 5,306 | ||||||||||||
| 1,844 | iGATE q | 24,857 | ||||||||||||
| 1,762 | Imation — | 11,841 | ||||||||||||
| 1,723 | Immersion — | 11,837 | ||||||||||||
| 6,232 | Infinera — q | 45,556 | ||||||||||||
| 2,208 | Infospace — | 19,342 | ||||||||||||
| 1,188 | Inphi — q | 13,116 | ||||||||||||
| 2,785 | Insight Enterprises — | 47,066 | ||||||||||||
| 8,832 | Integrated Device Technology — | 53,699 | ||||||||||||
| 1,537 | Integrated Silicon Solutions — | 14,156 | ||||||||||||
| 850 | Interactive Intelligence Group — | 23,587 | ||||||||||||
| 2,703 | Interdigital q | 117,445 | ||||||||||||
| 3,540 | Intermec — | 28,568 | ||||||||||||
| 3,097 | Internap Network Services — | 17,591 | ||||||||||||
| 1,362 | Intevac — | 10,964 | ||||||||||||
| 1,906 | Intralinks Holdings — | 16,563 | ||||||||||||
| 2,302 | Ixia — q | 26,082 | ||||||||||||
| 1,440 | IXYS — | 19,685 | ||||||||||||
| 2,662 | J2 Global Communications — q | 81,936 | ||||||||||||
| 5,146 | Jack Henry & Associates q | 166,782 | ||||||||||||
| 2,522 | JDA Software — | 80,376 | ||||||||||||
| 2,631 | Kemet — | 24,258 | ||||||||||||
| 1,575 | Kenexa — | 36,020 | ||||||||||||
| 819 | Keynote Systems — | 19,550 | ||||||||||||
| 2,282 | Kit Digital — q | 20,538 | ||||||||||||
| 4,011 | Kopin — | 16,245 | ||||||||||||
| 4,291 | Kulicke & Soffa — | 41,408 | ||||||||||||
| 852 | KVH Industries — q | 6,271 | ||||||||||||
| 6,912 | Lattice Semiconductor — | 43,753 | ||||||||||||
| 948 | LeCroy — | 9,726 | ||||||||||||
| 3,982 | Limelight Networks — | 11,070 | ||||||||||||
| 3,500 | Lionbridge Technologies — | 9,485 | ||||||||||||
| 1,088 | Liquidity Services — | 35,425 | ||||||||||||
| 1,354 | Littelfuse — | 66,292 | ||||||||||||
| 3,140 | Liveperson — q | 39,533 | ||||||||||||
| 1,215 | LogMeIn — q | 49,414 | ||||||||||||
| 960 | LoopNet — | 16,982 | ||||||||||||
| 651 | Loral Space & Communications — | 39,385 | ||||||||||||
| 2,904 | LTX-Credence — q | 18,382 | ||||||||||||
| Nuveen Investments | 79 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 3,981 | Magma Design Automation — q | $ | 21,020 | |||||||||||
| 1,296 | Manhattan Associates — | 54,886 | ||||||||||||
| 1,335 | ManTech International — q | 46,899 | ||||||||||||
| 1,237 | Marchex, Class B q | 10,997 | ||||||||||||
| 2,008 | MAXIMUS | 81,003 | ||||||||||||
| 926 | MaxLinear, Class A — | 5,389 | ||||||||||||
| 1,640 | Maxwell Technologies — q | 32,751 | ||||||||||||
| 877 | Measurement Specialties — | 27,371 | ||||||||||||
| 5,739 | Mentor Graphics — | 65,195 | ||||||||||||
| 1,798 | Mercury Computer Systems — q | 26,251 | ||||||||||||
| 623 | Meru Networks — q | 3,383 | ||||||||||||
| 2,137 | Methode Electronics, Class A | 19,853 | ||||||||||||
| 3,006 | Micrel | 33,126 | ||||||||||||
| 5,149 | Microsemi — | 95,051 | ||||||||||||
| 476 | MicroStrategy, Class A — q | 62,723 | ||||||||||||
| 1,997 | Mindspeed Technologies — q | 11,103 | ||||||||||||
| 3,083 | MIPS Technologies, Class A — | 16,926 | ||||||||||||
| 3,116 | MKS Instruments | 83,010 | ||||||||||||
| 2,534 | ModusLink Global Solutions | 10,592 | ||||||||||||
| 4,841 | MoneyGram International — | 12,393 | ||||||||||||
| 1,734 | Monolithic Power Systems — q | 21,606 | ||||||||||||
| 2,132 | Monotype Imaging Holdings — | 28,931 | ||||||||||||
| 1,915 | MoSys — | 7,411 | ||||||||||||
| 2,143 | Motricity — q | 3,772 | ||||||||||||
| 9,185 | Move — | 16,900 | ||||||||||||
| 929 | MTS Systems | 34,066 | ||||||||||||
| 600 | Multi-Fineline Electronix — | 13,764 | ||||||||||||
| 1,200 | Nanometrics — | 20,256 | ||||||||||||
| 397 | NCI — | 5,419 | ||||||||||||
| 508 | NeoPhotonics — | 2,657 | ||||||||||||
| 2,182 | NETGEAR — | 77,374 | ||||||||||||
| 4,072 | Netlogic Microsystems — | 200,342 | ||||||||||||
| 2,227 | NetScout Systems — | 36,501 | ||||||||||||
| 1,623 | NetSuite — q | 61,739 | ||||||||||||
| 2,198 | Newport — | 30,442 | ||||||||||||
| 3,702 | NIC | 51,125 | ||||||||||||
| 1,844 | Novatel Wireless — | 7,321 | ||||||||||||
| 552 | Numerex — | 4,388 | ||||||||||||
| 285 | NVE — q | 15,681 | ||||||||||||
| 3,009 | Oclaro — q | 12,367 | ||||||||||||
| 3,063 | OCZ Technology Group — q | 21,655 | ||||||||||||
| 3,456 | OmniVision Technologies — q | 56,367 | ||||||||||||
| 1,404 | Opentable — q | 61,579 | ||||||||||||
| 5,081 | Openwave Systems — | 7,876 | ||||||||||||
| 1,196 | Oplink Communications — | 19,399 | ||||||||||||
| 80 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 859 | OPNET Technologies | $ | 37,573 | |||||||||||
| 2,572 | Opnext — | 2,552 | ||||||||||||
| 2,005 | Orbcomm — | 5,514 | ||||||||||||
| 1,118 | OSI Systems — | 49,527 | ||||||||||||
| 7,099 | Parametric Technology — | 147,872 | ||||||||||||
| 1,235 | Park Electrochemical | 34,950 | ||||||||||||
| 476 | PC Connection — | 3,975 | ||||||||||||
| 1,341 | PDF Solutions — | 6,933 | ||||||||||||
| 991 | Pegasystems q | 37,450 | ||||||||||||
| 1,379 | Perficient — | 13,142 | ||||||||||||
| 1,543 | Pericom Semiconductor — | 13,100 | ||||||||||||
| 3,504 | Photronics — | 21,970 | ||||||||||||
| 2,868 | Plantronics q | 95,820 | ||||||||||||
| 2,176 | Plexus — | 55,923 | ||||||||||||
| 2,613 | PLX Technology — | 8,492 | ||||||||||||
| 1,718 | Power Integrations q | 61,212 | ||||||||||||
| 4,058 | Power One — q | 20,087 | ||||||||||||
| 1,992 | Powerwave Technologies — | 7,190 | ||||||||||||
| 1,130 | PRGX Global — | 6,034 | ||||||||||||
| 845 | Procera Networks — | 9,633 | ||||||||||||
| 3,995 | Progress Software — | 84,135 | ||||||||||||
| 1,282 | PROS Holdings — | 20,333 | ||||||||||||
| 2,499 | Pulse Electronics q | 8,821 | ||||||||||||
| 392 | QAD | 4,532 | ||||||||||||
| 4,196 | Qlik Technologies — q | 119,880 | ||||||||||||
| 13,436 | Quantum — | 35,068 | ||||||||||||
| 396 | Quepasa — q | 1,913 | ||||||||||||
| 3,646 | Quest Software — q | 64,133 | ||||||||||||
| 1,643 | QuinStreet — q | �� | 18,878 | |||||||||||
| 1,123 | RadiSys — | 6,581 | ||||||||||||
| 2,448 | RealD — | 27,344 | ||||||||||||
| 1,220 | RealNetworks q | 11,907 | ||||||||||||
| 1,807 | Realpage — q | 47,614 | ||||||||||||
| 548 | Responsys — | 5,984 | ||||||||||||
| 16,459 | RF Micro Devices — q | 120,809 | ||||||||||||
| 858 | Richardson Electronics | 11,145 | ||||||||||||
| 1,470 | RightNow Technologies — | 63,225 | ||||||||||||
| 525 | Rimage | 5,827 | ||||||||||||
| 1,695 | Rofin-Sinar Technologies — | 44,070 | ||||||||||||
| 951 | Rogers — | 41,055 | ||||||||||||
| 622 | Rosetta Stone — q | 6,176 | ||||||||||||
| 1,045 | Rubicon Technology — q | 10,889 | ||||||||||||
| 1,887 | Rudolph Technologies — q | 13,907 | ||||||||||||
| 3,222 | S1 — | 31,350 | ||||||||||||
| 1,660 | Saba Software — | 11,520 | ||||||||||||
| Nuveen Investments | 81 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 4,799 | Sanmina-SCI — | $ | 42,279 | |||||||||||
| 6,511 | Sapient — | 80,476 | ||||||||||||
| 1,610 | ScanSource — | 55,964 | ||||||||||||
| 713 | SciQuest — | 10,581 | ||||||||||||
| 1,530 | SeaChange International — | 12,913 | ||||||||||||
| 3,889 | Semtech — | 94,969 | ||||||||||||
| 578 | ServiceSource International — q | 7,693 | ||||||||||||
| 2,768 | ShoreTel — | 16,193 | ||||||||||||
| 1,861 | Sigma Designs — q | 15,521 | ||||||||||||
| 1,848 | Silicon Graphics International — q | 26,722 | ||||||||||||
| 4,665 | Silicon Image — | 30,043 | ||||||||||||
| 2,075 | Smith Micro Software — q | 2,428 | ||||||||||||
| 3,396 | Solarwinds — | 98,009 | ||||||||||||
| 12,578 | Sonus Networks — q | 33,332 | ||||||||||||
| 1,694 | Sourcefire — q | 46,670 | ||||||||||||
| 3,000 | Spansion — | 30,870 | ||||||||||||
| 487 | SPS Commerce — | 9,526 | ||||||||||||
| 707 | SRS Labs — | 4,970 | ||||||||||||
| 1,459 | SS&C Technologies Holdings — | 23,140 | ||||||||||||
| 614 | Stamps.com | 19,992 | ||||||||||||
| 1,371 | Standard Microsystems — | 33,946 | ||||||||||||
| 2,417 | STEC — | 27,360 | ||||||||||||
| 1,260 | Stratasys — q | 35,330 | ||||||||||||
| 531 | Stream Global Services — q | 1,662 | ||||||||||||
| 4,974 | SuccessFactors — q | 132,806 | ||||||||||||
| 1,576 | Super Micro Computer — | 25,216 | ||||||||||||
| 626 | Supertex — | 11,556 | ||||||||||||
| 2,786 | Support.com — | 5,878 | ||||||||||||
| 1,173 | Sycamore Networks q | 22,545 | ||||||||||||
| 2,503 | Symmetricom — | 12,890 | ||||||||||||
| 2,042 | Synaptics — q | 68,999 | ||||||||||||
| 1,576 | Synchronoss Technologies — q | 47,375 | ||||||||||||
| 1,500 | SYNNEX — | 43,305 | ||||||||||||
| 903 | Syntel | 44,157 | ||||||||||||
| 4,381 | Take-Two Interactive Software — | 69,132 | ||||||||||||
| 2,448 | Taleo, Class A — q | 79,315 | ||||||||||||
| 610 | Tangoe — | 8,204 | ||||||||||||
| 776 | Techtarget — | 5,750 | ||||||||||||
| 3,672 | Tekelec — | 36,059 | ||||||||||||
| 2,692 | Telecommunication Systems — | 8,884 | ||||||||||||
| 954 | Telenav — | 8,176 | ||||||||||||
| 1,467 | Teletech Holdings — | 25,643 | ||||||||||||
| 3,048 | Tessera Technologies — | 41,971 | ||||||||||||
| 4,119 | THQ — q | 8,773 | ||||||||||||
| 7,107 | TiVo — q | 76,969 | ||||||||||||
| 82 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Information Technology (continued) | ||||||||||||||
| 1,498 | TNS — | $ | 29,256 | |||||||||||
| 321 | Travelzoo — q | 10,227 | ||||||||||||
| 9,789 | TriQuint Semiconductor — | 52,077 | ||||||||||||
| 3,098 | TTM Technologies — q | 34,605 | ||||||||||||
| 1,887 | Tyler Technologies — q | 59,573 | ||||||||||||
| 1,541 | Ultimate Software Group — q | 92,737 | ||||||||||||
| 1,317 | Ultra Clean Holdings — | 7,217 | ||||||||||||
| 1,476 | Ultratech — | 32,177 | ||||||||||||
| 2,566 | Unisys — q | 66,690 | ||||||||||||
| 5,284 | United Online | 31,228 | ||||||||||||
| 2,292 | Universal Display — q | 107,334 | ||||||||||||
| 4,691 | ValueClick — | 82,562 | ||||||||||||
| 1,600 | VASCO Data Security International — | 13,216 | ||||||||||||
| 2,429 | Veeco Instruments — q | 64,830 | ||||||||||||
| 1,263 | Verint Systems — q | 37,637 | ||||||||||||
| 2,162 | ViaSat — q | 92,080 | ||||||||||||
| 255 | Viasystems Group — | 5,250 | ||||||||||||
| 2,427 | Virnetx Holding — q | 52,302 | ||||||||||||
| 888 | Virtusa — | 14,466 | ||||||||||||
| 711 | Vishay Precision Group — q | 10,373 | ||||||||||||
| 1,051 | Vocus — | 21,419 | ||||||||||||
| 1,471 | Volterra Semiconductor — | 34,863 | ||||||||||||
| 4,939 | Wave Systems — q | 12,891 | ||||||||||||
| 1,733 | Web.com Group — q | 16,741 | ||||||||||||
| 2,382 | Websense — | 42,495 | ||||||||||||
| 3,072 | Westell Technologies, Class A — | 6,175 | ||||||||||||
| 2,303 | Wright Express — q | 107,965 | ||||||||||||
| 1,883 | XO Group — | 17,380 | ||||||||||||
| 1,981 | X-Rite — | 8,934 | ||||||||||||
| 1,845 | Xyratex q | 25,166 | ||||||||||||
| 244 | Zillow — q | 7,244 | ||||||||||||
| 3,862 | Zix — | 9,578 | ||||||||||||
| 947 | Zygo — | 14,527 | ||||||||||||
Total Information Technology | 11,276,563 | |||||||||||||
Materials – 4.1% | ||||||||||||||
| 1,839 | A. Schulman | 38,821 | ||||||||||||
| 981 | A.M. Castle & Company | 13,430 | ||||||||||||
| 318 | AEP Industries — | 8,596 | ||||||||||||
| 1,453 | AMCOL International q | 43,866 | ||||||||||||
| 1,332 | American Vanguard q | 16,477 | ||||||||||||
| 1,721 | Balchem | 63,453 | ||||||||||||
| 6,216 | Boise — | 37,607 | ||||||||||||
| 2,378 | Buckeye Technologies q | 71,911 | ||||||||||||
| 3,367 | Calgon Carbon — | 53,704 | ||||||||||||
| 3,074 | Century Aluminum — q | 34,306 | ||||||||||||
| Nuveen Investments | 83 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Materials (continued) | ||||||||||||||
| 5,741 | Chemtura — | $ | 69,696 | |||||||||||
| 1,430 | Clearwater Paper — | 47,376 | ||||||||||||
| 5,337 | Coeur d’Alene Mines — | 136,467 | ||||||||||||
| 647 | Deltic Timber q | 43,795 | ||||||||||||
| 2,652 | Eagle Materials | 54,578 | ||||||||||||
| 2,214 | Endeavour International — q | 20,546 | ||||||||||||
| 5,160 | Ferro — | 33,385 | ||||||||||||
| 3,812 | Flotek Industries — q | 28,361 | ||||||||||||
| 1,080 | FutureFuel q | 12,204 | ||||||||||||
| 4,071 | General Moly — q | 14,004 | ||||||||||||
| 2,024 | Georgia Gulf — q | 36,634 | ||||||||||||
| 3,003 | Glatfelter | 45,045 | ||||||||||||
| 3,756 | Globe Specialty Metals | 62,613 | ||||||||||||
| 1,644 | Gold Resource q | 36,990 | ||||||||||||
| 1,637 | Golden Minerals — q | 11,475 | ||||||||||||
| 15,413 | Golden Star Resources — q | 30,672 | ||||||||||||
| 9,528 | Graphic Packaging Holding — | 42,114 | ||||||||||||
| 2,947 | H.B. Fuller | 63,331 | ||||||||||||
| 339 | Handy & Harman — | 4,068 | ||||||||||||
| 531 | Hawkins q | 20,327 | ||||||||||||
| 727 | Haynes International — | 42,522 | ||||||||||||
| 3,582 | Headwaters — | 6,304 | ||||||||||||
| 16,642 | Hecla Mining — q | 104,345 | ||||||||||||
| 2,614 | Horsehead Holding — q | 22,690 | ||||||||||||
| 1,294 | Innophos Holdings | 56,923 | ||||||||||||
| 1,413 | Innospec | 42,673 | ||||||||||||
| 5,030 | Jaguar Mining — q | 26,156 | ||||||||||||
| 955 | Kaiser Aluminum q | 44,369 | ||||||||||||
| 2,329 | Kapstone Paper & Packaging — | 38,196 | ||||||||||||
| 415 | KMG Chemicals | 6,034 | ||||||||||||
| 1,212 | Koppers Holdings q | 40,105 | ||||||||||||
| 1,902 | Kraton Performance Polymers — | 37,431 | ||||||||||||
| 1,601 | Landec — | 9,942 | ||||||||||||
| 7,877 | Louisiana-Pacific — | 52,382 | ||||||||||||
| 1,094 | LSB Industries — | 38,760 | ||||||||||||
| 1,217 | Materion — | 32,178 | ||||||||||||
| 678 | Metals USA Holdings — | 7,383 | ||||||||||||
| 5,031 | Midway Gold — q | 10,565 | ||||||||||||
| 1,089 | Minerals Technologies q | 59,721 | ||||||||||||
| 1,888 | Myers Industries | 23,071 | ||||||||||||
| 859 | Neenah Paper | 14,174 | ||||||||||||
| 538 | NewMarket q | 104,447 | ||||||||||||
| 381 | NL Industries | 5,540 | ||||||||||||
| 1,355 | Noranda Aluminum Holding — | 12,547 | ||||||||||||
| 4,751 | Olin | 89,604 | ||||||||||||
| 84 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Materials (continued) | ||||||||||||||
| 552 | Olympic Steel | $ | 11,288 | |||||||||||
| 1,849 | OM Group — | 53,455 | ||||||||||||
| 2,674 | Omnova Solutions — | 11,846 | ||||||||||||
| 6,982 | Paramount Gold & Silver — q | 18,572 | ||||||||||||
| 5,566 | PolyOne | 62,284 | ||||||||||||
| 751 | Quaker Chemical | 26,127 | ||||||||||||
| 1,449 | Revett Minerals — | 6,100 | ||||||||||||
| 1,799 | RTI International Metals — q | 47,476 | ||||||||||||
| 1,070 | Schweitzer-Mauduit International | 75,242 | ||||||||||||
| 2,896 | Sensient Technologies | 107,036 | ||||||||||||
| 1,777 | Spartech | 7,215 | ||||||||||||
| 475 | Stepan q | 36,713 | ||||||||||||
| 6,142 | Stillwater Mining — q | 69,773 | ||||||||||||
| 1,775 | STR Holdings — q | 15,176 | ||||||||||||
| 512 | Suncoke Energy — q | 6,462 | ||||||||||||
| 1,357 | Texas Industries q | 40,710 | ||||||||||||
| 9,105 | Thompson Creek Metals — q | 64,919 | ||||||||||||
| 791 | TPC Group — | 15,717 | ||||||||||||
| 1,586 | U.S. Energy — | 4,964 | ||||||||||||
| 154 | United States Lime & Minerals — | 8,470 | ||||||||||||
| 424 | Universal Stainless & Alloy — | 15,964 | ||||||||||||
| 6,089 | US Gold — q | 27,644 | ||||||||||||
| 871 | Verso Paper — | 1,594 | ||||||||||||
| 4,110 | Vista Gold — q | 14,837 | ||||||||||||
| 2,909 | Wausau-Mosinee Paper | 21,818 | ||||||||||||
| 3,426 | Worthington Industries q | 59,201 | ||||||||||||
| 1,321 | Zagg — q | 17,820 | ||||||||||||
| 1,288 | Zep | 19,629 | ||||||||||||
| 1,693 | Zoltek Companies — | 12,274 | ||||||||||||
Total Materials | 3,004,240 | |||||||||||||
Telecommunication Services – 0.8% | ||||||||||||||
| 3,702 | 8x8 — q | 13,920 | ||||||||||||
| 1,384 | Abovenet | 82,140 | ||||||||||||
| 2,694 | Alaska Communications Systems Group q | 19,047 | ||||||||||||
| 543 | Atlantic Tele-Network | 20,607 | ||||||||||||
| 334 | Boingo Wireless — q | 2,555 | ||||||||||||
| 1,617 | Cbeyond — q | 13,324 | ||||||||||||
| 12,245 | Cincinnati Bell — | 39,429 | ||||||||||||
| 2,741 | Cogent Communications Group — q | 43,993 | ||||||||||||
| 1,559 | Consolidated Communications Holdings | 29,434 | ||||||||||||
| 1,248 | Fairpoint Communications — q | 6,702 | ||||||||||||
| 2,398 | General Communication, Class A — | 22,661 | ||||||||||||
| 12,635 | GlobalStar — q | 8,971 | ||||||||||||
| 773 | HickoryTech | 8,627 | ||||||||||||
| 839 | IDT, Class B q | 9,648 | ||||||||||||
| Nuveen Investments | 85 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| Shares | Description p | Value | ||||||||||||
Telecommunication Services (continued) | ||||||||||||||
| 1,775 | inContact — | $ | 7,348 | |||||||||||
| 2,598 | Iridium Communications — q | 16,523 | ||||||||||||
| 3,641 | Leap Wireless International — q | 25,305 | ||||||||||||
| 2,002 | Neutral Tandem — | 21,101 | ||||||||||||
| 1,751 | NTELOS Holdings | 33,304 | ||||||||||||
| 7,471 | PAETEC Holding — | 40,941 | ||||||||||||
| 9,012 | Pendrell — q | 22,350 | ||||||||||||
| 3,058 | Premiere Global Services — | 27,705 | ||||||||||||
| 1,376 | Shenandoah Telecommunications q | 18,659 | ||||||||||||
| 813 | SureWest Communications | 9,325 | ||||||||||||
| 2,484 | Towerstream — | 7,154 | ||||||||||||
| 1,275 | USA Mobility | 16,664 | ||||||||||||
| 8,263 | Vonage Holdings — | 27,681 | ||||||||||||
Total Telecommunication Services | 595,118 | |||||||||||||
Utilities – 3.3% | ||||||||||||||
| 1,900 | Allete | 75,069 | ||||||||||||
| 1,079 | American States Water | 37,700 | ||||||||||||
| 379 | Artesian Resources | 6,898 | ||||||||||||
| 4,021 | Atlantic Power q | 54,283 | ||||||||||||
| 3,435 | Avista | 87,421 | ||||||||||||
| 2,313 | Black Hills q | 77,971 | ||||||||||||
| 700 | Cadiz — q | 6,727 | ||||||||||||
| 2,491 | California Water Service Group | 46,258 | ||||||||||||
| 776 | Central Vermont Public Service | 27,447 | ||||||||||||
| 921 | CH Energy Group | 50,848 | ||||||||||||
| 568 | Chesapeake Utilities | 24,078 | ||||||||||||
| 3,629 | Cleco q | 133,801 | ||||||||||||
| 490 | Connecticut Water Service | 13,103 | ||||||||||||
| 845 | Consolidated Water | 7,842 | ||||||||||||
| 6,084 | Dynegy — | 22,328 | ||||||||||||
| 2,511 | El Paso Electric — | 80,427 | ||||||||||||
| 2,417 | Empire District Electric | 48,267 | ||||||||||||
| 839 | Genie Energy — | 6,964 | ||||||||||||
| 2,954 | IDACORP | 119,283 | ||||||||||||
| 1,296 | Laclede Group | 51,996 | ||||||||||||
| 1,408 | MGE Energy | 61,445 | ||||||||||||
| 929 | Middlesex Water Company | 17,605 | ||||||||||||
| 2,394 | New Jersey Resources | 112,566 | ||||||||||||
| 2,672 | Nicor q | 150,300 | ||||||||||||
| 1,543 | Northwest Natural Gas q | 72,089 | ||||||||||||
| 2,161 | NorthWestern | 74,446 | ||||||||||||
| 1,070 | Ormat Technologies q | 20,319 | ||||||||||||
| 275 | Pennichuck | 7,824 | ||||||||||||
| 4,279 | Piedmont Natural Gas q | 139,880 | ||||||||||||
| 5,166 | PNM Resources | 92,885 | ||||||||||||
| 86 | Nuveen Investments |
| Shares | Description p | Value | ||||||||||||
Utilities (continued) | ||||||||||||||
| 4,490 | Portland General Electric | $ | 110,185 | |||||||||||
| 840 | SJW q | 19,555 | ||||||||||||
| 1,733 | South Jersey Industries q | 97,585 | ||||||||||||
| 2,733 | Southwest Gas | 107,899 | ||||||||||||
| 3,011 | UIL Holdings q | 102,615 | ||||||||||||
| 2,171 | UniSource Energy Holding q | 80,935 | ||||||||||||
| 641 | Unitil | 17,095 | ||||||||||||
| 2,968 | WGL Holdings | 127,060 | ||||||||||||
| 695 | York Water q | 11,815 | ||||||||||||
Total Utilities | 2,402,814 | |||||||||||||
Total Common Stocks (cost $56,397,887) | 65,947,793 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
RIGHTS – 0.0% | ||||||||||||||
| 1,493 | Gerber Scientific | $ | — | |||||||||||
Total Rights (cost $0) | — | |||||||||||||
| Shares | Description p | Value | ||||||||||||
WARRANTS – 0.0% | ||||||||||||||
| 644 | Magnum Hunter Resources | $ | 524 | |||||||||||
Total Warrants (cost $0) | 524 | |||||||||||||
| Shares | Description p | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING | ||||||||||||||
Money Market Funds – 43.8% | ||||||||||||||
| 31,808,741 | Mount Vernon Securities Lending Prime Portfolio, 0.200% W † | $ | 31,808,741 | |||||||||||
Total Investments Purchased With Collateral From Securities Lending (cost $31,808,741) | 31,808,741 | |||||||||||||
| Shares/ Principal Amount (000) | Description p | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 9.5% | ||||||||||||||
Money Market Funds – 8.2% | ||||||||||||||
| 5,980,700 | First American Treasury Obligations Fund, 0.000% W | $ | 5,980,700 | |||||||||||
U.S. Treasury Obligation – 1.3% | ||||||||||||||
U.S. Treasury Bill | ||||||||||||||
| $ | 920 | 0.022%, 03/01/2012 ¨ | 919,932 | |||||||||||
Total Short-Term Investments (cost $6,900,638) | 6,900,632 | |||||||||||||
Total Investments (cost $95,107,266) – 144.0% | 104,657,690 | |||||||||||||
Other Assets Less Liabilities – (44.0)% ¯ | (31,962,611) | |||||||||||||
Net Assets – 100.0% | $ | 72,695,079 | ||||||||||||
Investments in Derivatives at October 31, 2011:
Futures Contracts outstanding:
| Type | Contract Position | Number of Contracts | Contract Expiration | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Russell 2000 Mini Index | Long | 90 | 12/11 | $ | 6,653,700 | $ | 428,175 | |||||||||||||
| Nuveen Investments | 87 |
Portfolio of Investments
Nuveen Small Cap Index Fund (continued)
October 31, 2011
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| p | All percentages shown in the Portfolio of Investments are based on net assets. |
| — | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| q | Investment, or portion of investment, is out on loan for securities lending. |
| Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, Investment categorized as Level 3. See Notes to Financial Statements Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| W | The rate shown is the annualized seven-day effective yield as of October 31, 2011. |
| ¨ | Investment, or portion of investment, segregated as collateral for investments in derivatives. Yield shown is the annualized effective yield as of October 31, 2011. |
| † | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, or other institutional borrowers of securities. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the Fund is invested in this money market fund. |
| ¯ | Other Assets Less Liabilities includes Value and/or the Net Unrealized Appreciation (Depreciation) of derivative instruments as noted within Investments in Derivatives at October 31 2011. |
| REIT | Real Estate Investment Trust |
See accompanying notes to financial statements.
| 88 | Nuveen Investments |
Statement of Assets & Liabilities
October 31, 2011 (all dollars and shares are rounded to thousands (000), except for per share data)
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Assets | ||||||||||||
Investments, at value (cost $469,685, $275,209 and $63,298, respectively) | $ | 745,078 | $ | 307,613 | $ | 72,849 | ||||||
Investments purchased with collateral from securities lending (at cost, which approximates value) | 190,918 | 96,167 | 31,809 | |||||||||
Cash | 3 | — | 18 | |||||||||
Receivables: | ||||||||||||
Dividends | 832 | 142 | 27 | |||||||||
Due from broker | 19 | 9 | 11 | |||||||||
From Adviser | — | — | 12 | |||||||||
Investments sold | — | 300 | 5 | |||||||||
Shares sold | 379 | 674 | 137 | |||||||||
Other assets | 37 | 52 | 45 | |||||||||
Total assets | 937,266 | 404,957 | 104,913 | |||||||||
Liabilities | ||||||||||||
Payables: | ||||||||||||
Collateral from securities lending program | 190,918 | 96,167 | 31,809 | |||||||||
Investments purchased | — | 294 | 5 | |||||||||
Shares redeemed | 1,640 | 161 | 66 | |||||||||
Variation margin on futures contracts | 1,280 | 668 | 184 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 67 | 35 | — | |||||||||
12b-1 distribution and service fees | 41 | 42 | 9 | |||||||||
Other | 412 | 198 | 145 | |||||||||
Total liabilities | 194,358 | 97,565 | 32,218 | |||||||||
Net assets | $ | 742,908 | $ | 307,392 | $ | 72,695 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 119,172 | $ | 68,856 | $ | 19,406 | ||||||
Shares outstanding | 5,559 | 5,350 | 1,861 | |||||||||
Net asset value and offering price per share | $ | 21.44 | $ | 12.87 | $ | 10.43 | ||||||
Class B Shares | ||||||||||||
Net assets | $ | 4,227 | N/A | N/A | ||||||||
Shares outstanding | 200 | N/A | N/A | |||||||||
Net asset value and offering price per share | $ | 21.10 | N/A | N/A | ||||||||
Class C Shares | ||||||||||||
Net assets | $ | 8,261 | $ | 3,302 | $ | 1,330 | ||||||
Shares outstanding | 389 | 264 | 133 | |||||||||
Net asset value and offering price per share | $ | 21.24 | $ | 12.51 | $ | 10.02 | ||||||
Class R3 Shares(1) | ||||||||||||
Net assets | $ | 14,218 | $ | 65,060 | $ | 11,824 | ||||||
Shares outstanding | 664 | 5,113 | 1,162 | |||||||||
Net asset value and offering price per share | $ | 21.40 | $ | 12.73 | $ | 10.18 | ||||||
Class I Shares(1) | ||||||||||||
Net assets | $ | 597,030 | $ | 170,174 | $ | 40,135 | ||||||
Shares outstanding | 27,857 | 13,168 | 3,837 | |||||||||
Net asset value and offering price per share | $ | 21.43 | $ | 12.92 | $ | 10.46 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 426,854 | $ | 263,366 | $ | 63,881 | ||||||
Undistributed (Over-distribution of) net investment income | 2,136 | 886 | 256 | |||||||||
Accumulated net realized gain (loss) | 37,265 | 9,230 | (1,421 | ) | ||||||||
Net unrealized appreciation (depreciation) | 276,653 | 33,910 | 9,979 | |||||||||
Net assets | $ | 742,908 | $ | 307,392 | $ | 72,695 | ||||||
Authorized shares | $ | 2 billion | $ | 2 billion | $ | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | ||||||
| N/A | - Mid Cap Index and Small Cap Index do not offer Class B Shares. |
| (1) | - Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 89 |
Statement of Operations (all dollars are rounded to thousands (000))
Year Ended October 31, 2011
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Dividend income from affiliated investments(1) | $ | 7 | $ | — | $ | — | ||||||
Dividend income from unaffiliated investments | 16,540 | 3,212 | 862 | |||||||||
Interest income from affiliated investments(1) | 5 | 2 | — | |||||||||
Interest income from unaffiliated investments | 17 | 9 | 3 | |||||||||
Securities lending income | 149 | 102 | 103 | |||||||||
Total investment income | 16,718 | 3,325 | 968 | |||||||||
Expenses | ||||||||||||
Management fees | 2,263 | 958 | 260 | |||||||||
12b-1 service fees – Class A | 310 | 142 | 41 | |||||||||
12b-1 distribution and service fees – Class B | 58 | N/A | N/A | |||||||||
12b-1 distribution and service fees – Class C | 89 | 35 | 17 | |||||||||
12b-1 distribution and service fees – Class R3(2) | 75 | 239 | 40 | |||||||||
Administration fees(1) | 347 | 110 | 42 | |||||||||
Shareholders’ servicing agent fees and expenses | 717 | 248 | 92 | |||||||||
Custodian’s fees and expenses | 149 | 70 | 115 | |||||||||
Directors’ fees and expenses | 22 | 11 | 6 | |||||||||
Professional fees | 29 | 29 | 29 | |||||||||
Shareholders’ reports – printing and mailing expenses | 136 | 63 | 26 | |||||||||
Federal and state registration fees | 80 | 83 | 72 | |||||||||
Other expenses | 3 | 14 | 23 | |||||||||
Total expenses before expense reimbursement | 4,278 | 2,002 | 763 | |||||||||
Expense reimbursement | (653 | ) | (111 | ) | (243 | ) | ||||||
Net expenses | 3,625 | 1,891 | 520 | |||||||||
Net investment income (loss) | 13,093 | 1,434 | 448 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Affiliated investments(1) | 8 | — | — | |||||||||
Unaffiliated investments | 58,391 | 13,742 | 4,825 | |||||||||
Redemptions-in-kind | — | 12,782 | — | |||||||||
Futures contracts | 5,310 | (65 | ) | 122 | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments | (3,757 | ) | (7,925 | ) | (1,256 | ) | ||||||
Futures contracts | (1,853 | ) | 653 | 143 | ||||||||
Net realized and unrealized gain (loss) | 58,099 | 19,187 | 3,834 | |||||||||
Net increase (decrease) in net assets from operations | $ | 71,192 | $ | 20,621 | $ | 4,282 | ||||||
| N/A | - Mid Cap Index and Small Cap Index do not offer Class B Shares. |
| (1) | - For the period November 1, 2010 through December 31, 2010. |
| (2) | - Effective January 18, 2011, Class R Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares. |
See accompanying notes to financial statements.
| 90 | Nuveen Investments |
Statement of Changes in Net Assets
(all dollars are rounded to thousands (000))
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | 13,093 | $ | 14,952 | $ | 1,434 | $ | 2,358 | $ | 448 | 443 | |||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments | 58,399 | 66,782 | 13,742 | 7,279 | 4,825 | 1,593 | ||||||||||||||||||
Redemptions in-kind | — | — | 12,782 | — | — | — | ||||||||||||||||||
Futures contracts | 5,310 | 408 | (65 | ) | 3,002 | 122 | 611 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||||||
Investments | (3,757 | ) | 55,675 | (7,925 | ) | 42,257 | (1,256 | ) | 11,124 | |||||||||||||||
Futures contracts | (1,853 | ) | 3,479 | 653 | 1,350 | 143 | 608 | |||||||||||||||||
Net increase (decrease) in net assets from operations | 71,192 | 141,296 | 20,621 | 56,246 | 4,282 | 14,379 | ||||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||||||
From net investment income: | ||||||||||||||||||||||||
Class A | (1,490 | ) | (1,712 | ) | (256 | ) | (181 | ) | (80 | ) | (59 | ) | ||||||||||||
Class B | (24 | ) | (58 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||
Class C | (40 | ) | (60 | ) | — | (2 | ) | — | — | |||||||||||||||
Class R3(1) | (139 | ) | (145 | ) | (148 | ) | (77 | ) | (22 | ) | (15 | ) | ||||||||||||
Class I(1) | (9,732 | ) | (13,280 | ) | (1,447 | ) | (1,705 | ) | (383 | ) | (344 | ) | ||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||||||
Class A | (7,601 | ) | (251 | ) | — | — | — | — | ||||||||||||||||
Class B | (448 | ) | (21 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||
Class C | (543 | ) | (19 | ) | — | — | — | — | ||||||||||||||||
Class R3(1) | (994 | ) | (23 | ) | — | — | — | — | ||||||||||||||||
Class I(1) | (46,368 | ) | (1,734 | ) | — | — | — | — | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (67,379 | ) | (17,303 | ) | (1,851 | ) | (1,965 | ) | (485 | ) | (418 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||||||
Proceeds from sale of shares | 107,954 | 110,513 | 151,236 | 70,738 | 31,404 | 16,787 | ||||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 47,058 | 10,199 | 994 | 1,085 | 265 | 211 | ||||||||||||||||||
| 155,012 | 120,712 | 152,230 | 71,823 | 31,669 | 16,998 | |||||||||||||||||||
Cost of shares redeemed | (313,869 | ) | (318,509 | ) | (97,192 | ) | (58,681 | ) | (29,057 | ) | (20,335 | ) | ||||||||||||
Cost of redemptions in-kind | — | — | (35,015 | ) | — | — | — | |||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (158,857 | ) | (197,797 | ) | 20,023 | 13,142 | 2,612 | (3,337 | ) | |||||||||||||||
Net increase (decrease) in net assets | (155,044 | ) | (73,804 | ) | 38,793 | 67,423 | 6,409 | 10,624 | ||||||||||||||||
Net assets at the beginning of period | 897,952 | 971,756 | 268,599 | 201,176 | 66,286 | 55,662 | ||||||||||||||||||
Net assets at the end of period | $ | 742,908 | $ | 897,952 | $ | 307,392 | $ | 268,599 | $ | 72,695 | $ | 66,286 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 2,136 | $ | 619 | $ | 886 | $ | 1,302 | $ | 256 | $ | 294 | ||||||||||||
| N/A | - Mid Cap Index and Small Cap Index do not offer Class B Shares. |
| (1) | - Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 91 |
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| EQUITY INDEX | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Invest- ment Income | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
CLASS A (12/92) |
| |||||||||||||||||||||||||||||||
2011 | $ | 21.51 | $ | .30 | $ | 1.26 | $ | 1.56 | $ | (.26 | ) | $ | (1.37 | ) | $ | (1.63 | ) | $ | 21.44 | |||||||||||||
2010 | 18.86 | .29 | 2.70 | 2.99 | (.30 | ) | (.04 | ) | (.34 | ) | 21.51 | |||||||||||||||||||||
2009 | 17.61 | .34 | 1.27 | 1.61 | (.36 | ) | — | (.36 | ) | 18.86 | ||||||||||||||||||||||
2008 | 28.67 | .42 | (10.57 | ) | (10.15 | ) | (.38 | ) | (.53 | ) | (.91 | ) | 17.61 | |||||||||||||||||||
2007 | 25.80 | .37 | 3.16 | 3.53 | (.36 | ) | (.30 | ) | (.66 | ) | 28.67 | |||||||||||||||||||||
CLASS B (8/94) |
| |||||||||||||||||||||||||||||||
2011 | 21.19 | .14 | 1.24 | 1.38 | (.10 | ) | (1.37 | ) | (1.47 | ) | 21.10 | |||||||||||||||||||||
2010 | 18.58 | .13 | 2.66 | 2.79 | (.14 | ) | (.04 | ) | (.18 | ) | 21.19 | |||||||||||||||||||||
2009 | 17.35 | .22 | 1.25 | 1.47 | (.24 | ) | — | (.24 | ) | 18.58 | ||||||||||||||||||||||
2008 | 28.27 | .24 | (10.42 | ) | (10.18 | ) | (.21 | ) | (.53 | ) | (.74 | ) | 17.35 | |||||||||||||||||||
2007 | 25.47 | .17 | 3.11 | 3.28 | (.18 | ) | (.30 | ) | (.48 | ) | 28.27 | |||||||||||||||||||||
CLASS C (2/99) |
| |||||||||||||||||||||||||||||||
2011 | 21.32 | .13 | 1.26 | 1.39 | (.10 | ) | (1.37 | ) | (1.47 | ) | 21.24 | |||||||||||||||||||||
2010 | 18.70 | .13 | 2.67 | 2.80 | (.14 | ) | (.04 | ) | (.18 | ) | 21.32 | |||||||||||||||||||||
2009 | 17.46 | .21 | 1.26 | 1.47 | (.23 | ) | — | (.23 | ) | 18.70 | ||||||||||||||||||||||
2008 | 28.45 | .24 | (10.48 | ) | (10.24 | ) | (.22 | ) | (.53 | ) | (.75 | ) | 17.46 | |||||||||||||||||||
2007 | 25.62 | .17 | 3.14 | 3.31 | (.18 | ) | (.30 | ) | (.48 | ) | 28.45 | |||||||||||||||||||||
CLASS R3 (9/01)(e) |
| |||||||||||||||||||||||||||||||
2011 | 21.47 | .25 | 1.26 | 1.51 | (.21 | ) | (1.37 | ) | (1.58 | ) | 21.40 | |||||||||||||||||||||
2010 | 18.83 | .23 | 2.70 | 2.93 | (.25 | ) | (.04 | ) | (.29 | ) | 21.47 | |||||||||||||||||||||
2009 | 17.58 | .29 | 1.28 | 1.57 | (.32 | ) | — | (.32 | ) | 18.83 | ||||||||||||||||||||||
2008 | 28.63 | .35 | (10.54 | ) | (10.19 | ) | (.33 | ) | (.53 | ) | (.86 | ) | 17.58 | |||||||||||||||||||
2007 | 25.77 | .29 | 3.17 | 3.46 | (.30 | ) | (.30 | ) | (.60 | ) | 28.63 | |||||||||||||||||||||
CLASS I (2/94)(e) |
| |||||||||||||||||||||||||||||||
2011 | 21.50 | .36 | 1.26 | 1.62 | (.32 | ) | (1.37 | ) | (1.69 | ) | 21.43 | |||||||||||||||||||||
2010 | 18.86 | .34 | 2.69 | 3.03 | (.35 | ) | (.04 | ) | (.39 | ) | 21.50 | |||||||||||||||||||||
2009 | 17.61 | .38 | 1.27 | 1.65 | (.40 | ) | — | (.40 | ) | 18.86 | ||||||||||||||||||||||
2008 | 28.66 | .48 | (10.56 | ) | (10.08 | ) | (.44 | ) | (.53 | ) | (.97 | ) | 17.61 | |||||||||||||||||||
2007 | 25.79 | .44 | 3.16 | 3.60 | (.43 | ) | (.30 | ) | (.73 | ) | 28.66 | |||||||||||||||||||||
| 92 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||
| 7.41 | % | $ | 119,172 | .70 | % | 1.29 | % | .62 | % | 1.37 | % | 2 | % | |||||||||||||
| 15.94 | 119,761 | .79 | 1.23 | .61 | 1.41 | 4 | ||||||||||||||||||||
| 9.51 | 115,213 | .79 | 1.86 | .62 | 2.03 | 10 | ||||||||||||||||||||
| (36.35 | ) | 114,654 | .78 | 1.58 | .62 | 1.74 | 4 | |||||||||||||||||||
| 13.93 | 213,957 | .76 | 1.23 | .62 | 1.37 | 4 | ||||||||||||||||||||
| 6.60 | 4,227 | 1.45 | .55 | 1.37 | .63 | 2 | ||||||||||||||||||||
| 15.07 | 7,351 | 1.54 | .49 | 1.36 | .67 | 4 | ||||||||||||||||||||
| 8.69 | 9,822 | 1.54 | 1.16 | 1.37 | 1.33 | 10 | ||||||||||||||||||||
| (36.82 | ) | 12,856 | 1.53 | .83 | 1.37 | .99 | 4 | |||||||||||||||||||
| 13.05 | 31,343 | 1.51 | .49 | 1.37 | .63 | 4 | ||||||||||||||||||||
| 6.61 | 8,261 | 1.45 | .55 | 1.37 | .62 | 2 | ||||||||||||||||||||
| 15.05 | 8,651 | 1.54 | .48 | 1.36 | .66 | 4 | ||||||||||||||||||||
| 8.69 | 8,661 | 1.54 | 1.14 | 1.37 | 1.31 | 10 | ||||||||||||||||||||
| (36.83 | ) | 9,784 | 1.53 | .83 | 1.37 | .99 | 4 | |||||||||||||||||||
| 13.09 | 19,585 | 1.51 | .48 | 1.37 | .62 | 4 | ||||||||||||||||||||
| 7.15 | 14,218 | .95 | 1.06 | .87 | 1.13 | 2 | ||||||||||||||||||||
| 15.63 | 12,979 | 1.04 | .97 | .86 | 1.15 | 4 | ||||||||||||||||||||
| 9.27 | 10,915 | 1.04 | 1.56 | .87 | 1.73 | 10 | ||||||||||||||||||||
| (36.51 | ) | 9,463 | 1.03 | 1.33 | .87 | 1.49 | 4 | |||||||||||||||||||
| 13.65 | 7,230 | 1.01 | .93 | .87 | 1.07 | 4 | ||||||||||||||||||||
| 7.68 | 597,030 | .45 | 1.55 | .37 | 1.63 | 2 | ||||||||||||||||||||
| 16.18 | 749,210 | .54 | 1.48 | .36 | 1.66 | 4 | ||||||||||||||||||||
| 9.78 | 827,145 | .54 | 2.14 | .37 | 2.31 | 10 | ||||||||||||||||||||
| (36.18 | ) | 954,582 | .53 | 1.83 | .37 | 1.99 | 4 | |||||||||||||||||||
| 14.22 | 1,714,008 | .51 | 1.48 | .37 | 1.62 | 4 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 93 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| MID CAP INDEX | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net ment | Net Realized/ Unrealized Gain (Loss) | Total | Net ment | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (11/99) | ||||||||||||||||||||||||||||||||
2011 | $ | 11.98 | $ | .05 | $ | .92 | $ | .97 | $ | (.08 | ) | $ | — | $ | (.08 | ) | $ | 12.87 | ||||||||||||||
2010 | 9.52 | .09 | 2.45 | 2.54 | (.08 | ) | — | (.08 | ) | 11.98 | ||||||||||||||||||||||
2009 | 8.83 | .09 | 1.27 | 1.36 | (.07 | ) | (.60 | ) | (.67 | ) | 9.52 | |||||||||||||||||||||
2008 | 15.69 | .13 | (5.30 | ) | (5.17 | ) | (.10 | ) | (1.59 | ) | (1.69 | ) | 8.83 | |||||||||||||||||||
2007 | 14.25 | .15 | 2.08 | 2.23 | (.13 | ) | (.66 | ) | (.79 | ) | 15.69 | |||||||||||||||||||||
Class C (9/01) | ||||||||||||||||||||||||||||||||
2011 | 11.67 | (.05 | ) | .89 | .84 | — | — | — | 12.51 | |||||||||||||||||||||||
2010 | 9.28 | .01 | 2.39 | 2.40 | (.01 | ) | — | (.01 | ) | 11.67 | ||||||||||||||||||||||
2009 | 8.64 | .04 | 1.23 | 1.27 | (.03 | ) | (.60 | ) | (.63 | ) | 9.28 | |||||||||||||||||||||
2008 | 15.41 | .04 | (5.19 | ) | (5.15 | ) | (.03 | ) | (1.59 | ) | (1.62 | ) | 8.64 | |||||||||||||||||||
2007 | 14.03 | .04 | 2.03 | 2.07 | (.03 | ) | (.66 | ) | (.69 | ) | 15.41 | |||||||||||||||||||||
Class R3 (11/00)(e) | ||||||||||||||||||||||||||||||||
2011 | 11.86 | .01 | .92 | .93 | (.06 | ) | — | (.06 | ) | 12.73 | ||||||||||||||||||||||
2010 | 9.43 | .06 | 2.43 | 2.49 | (.06 | ) | — | (.06 | ) | 11.86 | ||||||||||||||||||||||
2009 | 8.76 | .07 | 1.26 | 1.33 | (.06 | ) | (.60 | ) | (.66 | ) | 9.43 | |||||||||||||||||||||
2008 | 15.60 | .10 | (5.27 | ) | (5.17 | ) | (.08 | ) | (1.59 | ) | (1.67 | ) | 8.76 | |||||||||||||||||||
2007 | 14.19 | .11 | 2.07 | 2.18 | (.11 | ) | (.66 | ) | (.77 | ) | 15.60 | |||||||||||||||||||||
Class I (11/99)(e) | ||||||||||||||||||||||||||||||||
2011 | 12.03 | .08 | .91 | .99 | (.10 | ) | — | (.10 | ) | 12.92 | ||||||||||||||||||||||
2010 | 9.55 | .12 | 2.46 | 2.58 | (.10 | ) | — | (.10 | ) | 12.03 | ||||||||||||||||||||||
2009 | 8.84 | .12 | 1.27 | 1.39 | (.08 | ) | (.60 | ) | (.68 | ) | 9.55 | |||||||||||||||||||||
2008 | 15.70 | .17 | (5.31 | ) | (5.14 | ) | (.13 | ) | (1.59 | ) | (1.72 | ) | 8.84 | |||||||||||||||||||
2007 | 14.27 | .19 | 2.07 | 2.26 | (.17 | ) | (.66 | ) | (.83 | ) | 15.70 | |||||||||||||||||||||
| 94 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net ment | Expenses | Net ment | Portfolio Turnover Rate | ||||||||||||||||||||
| 8.07 | % | $ | 68,856 | .79 | % | .32 | % | .75 | % | .36 | % | 23 | % | |||||||||||||
| 26.79 | 36,499 | .86 | .70 | .74 | .82 | 8 | ||||||||||||||||||||
| 17.53 | 22,766 | .92 | .98 | .75 | 1.15 | 18 | ||||||||||||||||||||
| (36.46 | ) | 11,374 | .84 | .94 | .74 | 1.04 | 15 | |||||||||||||||||||
| 16.32 | 17,868 | .81 | .96 | .75 | 1.02 | 15 | ||||||||||||||||||||
| 7.20 | 3,302 | 1.53 | (.42 | ) | 1.50 | (.39 | ) | 23 | ||||||||||||||||||
| 25.86 | 3,100 | 1.61 | (.05 | ) | 1.49 | .07 | 8 | |||||||||||||||||||
| 16.68 | 2,766 | 1.67 | .31 | 1.50 | .48 | 18 | ||||||||||||||||||||
| (36.91 | ) | 3,101 | 1.58 | .20 | 1.48 | .30 | 15 | |||||||||||||||||||
| 15.39 | 5,287 | 1.56 | .22 | 1.50 | .28 | 15 | ||||||||||||||||||||
| 7.83 | 65,060 | 1.04 | .07 | 1.00 | .11 | 23 | ||||||||||||||||||||
| 26.48 | 26,458 | 1.11 | .44 | .99 | .56 | 8 | ||||||||||||||||||||
| 17.29 | 12,212 | 1.17 | .72 | 1.00 | .89 | 18 | ||||||||||||||||||||
| (36.66 | ) | 8,157 | 1.10 | .70 | 1.00 | .80 | 15 | |||||||||||||||||||
| 16.01 | 5,913 | 1.06 | .72 | 1.00 | .78 | 15 | ||||||||||||||||||||
| 8.23 | 170,174 | .53 | .59 | .50 | .63 | 23 | ||||||||||||||||||||
| 27.13 | 202,542 | .61 | .95 | .49 | 1.07 | 8 | ||||||||||||||||||||
| 17.92 | 163,432 | .67 | 1.30 | .50 | 1.47 | 18 | ||||||||||||||||||||
| (36.31 | ) | 177,038 | .59 | 1.19 | .49 | 1.29 | 15 | |||||||||||||||||||
| 16.52 | 333,784 | .56 | 1.23 | .50 | 1.29 | 15 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 95 |
Financial Highlights (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| SMALL CAP INDEX | ||||||||||||||||||||||||||||||||
| Year Ended October 31, | Beginning Net Asset Value | Net ment | Net Realized/ Unrealized Gain (Loss) | Total | Net ment | Capital Gains(b) | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (12/98) | ||||||||||||||||||||||||||||||||
2011 | $ | 9.89 | $ | .05 | $ | .55 | $ | .60 | $ | (.06 | ) | $ | — | $ | (.06 | ) | $ | 10.43 | ||||||||||||||
2010 | 7.90 | .05 | 1.99 | 2.04 | (.05 | ) | — | (.05 | ) | 9.89 | ||||||||||||||||||||||
2009 | 8.91 | .06 | .27 | .33 | (.07 | ) | (1.27 | ) | (1.34 | ) | 7.90 | |||||||||||||||||||||
2008 | 15.37 | .13 | (4.88 | ) | (4.75 | ) | (.10 | ) | (1.61 | ) | (1.71 | ) | 8.91 | |||||||||||||||||||
2007 | 16.23 | .14 | 1.13 | 1.27 | (.12 | ) | (2.01 | ) | (2.13 | ) | 15.37 | |||||||||||||||||||||
Class C (9/01) | ||||||||||||||||||||||||||||||||
2011 | 9.52 | (.03 | ) | .53 | .50 | — | — | — | 10.02 | |||||||||||||||||||||||
2010 | 7.62 | (.02 | ) | 1.92 | 1.90 | — | — | — | 9.52 | |||||||||||||||||||||||
2009 | 8.66 | .01 | .26 | .27 | (.04 | ) | (1.27 | ) | (1.31 | ) | 7.62 | |||||||||||||||||||||
2008 | 15.02 | .04 | (4.76 | ) | (4.72 | ) | (.03 | ) | (1.61 | ) | (1.64 | ) | 8.66 | |||||||||||||||||||
2007 | 15.92 | .03 | 1.10 | 1.13 | (.02 | ) | (2.01 | ) | (2.03 | ) | 15.02 | |||||||||||||||||||||
Class R3 (12/98)(e) | ||||||||||||||||||||||||||||||||
2011 | 9.66 | .03 | .53 | .56 | (.04 | ) | — | (.04 | ) | 10.18 | ||||||||||||||||||||||
2010 | 7.73 | .03 | 1.94 | 1.97 | (.04 | ) | — | (.04 | ) | 9.66 | ||||||||||||||||||||||
2009 | 8.76 | .04 | .26 | .30 | (.06 | ) | (1.27 | ) | (1.33 | ) | 7.73 | |||||||||||||||||||||
2008 | 15.16 | .10 | (4.81 | ) | (4.71 | ) | (.08 | ) | (1.61 | ) | (1.69 | ) | 8.76 | |||||||||||||||||||
2007 | 16.04 | .11 | 1.11 | 1.22 | (.09 | ) | (2.01 | ) | (2.10 | ) | 15.16 | |||||||||||||||||||||
Class I (12/98)(e) | ||||||||||||||||||||||||||||||||
2011 | 9.91 | .08 | .55 | .63 | (.08 | ) | — | (.08 | ) | 10.46 | ||||||||||||||||||||||
2010 | 7.91 | .07 | 2.00 | 2.07 | (.07 | ) | — | (.07 | ) | 9.91 | ||||||||||||||||||||||
2009 | 8.92 | .09 | .25 | .34 | (.08 | ) | (1.27 | ) | (1.35 | ) | 7.91 | |||||||||||||||||||||
2008 | 15.37 | .16 | (4.88 | ) | (4.72 | ) | (.12 | ) | (1.61 | ) | (1.73 | ) | 8.92 | |||||||||||||||||||
2007 | 16.23 | .18 | 1.13 | 1.31 | (.16 | ) | (2.01 | ) | (2.17 | ) | 15.37 | |||||||||||||||||||||
| 96 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Reimbursement | Ratios to Average Net Assets After Reimbursement(d) | |||||||||||||||||||||||||
| Total Return(c) | Ending Net Assets (000) | Expenses | Net ment | Expenses | Net ment | Portfolio Turnover Rate | ||||||||||||||||||||
| 6.03 | % | $ | 19,406 | 1.17 | % | .15 | % | .83 | % | .50 | % | 14 | % | |||||||||||||
| 25.91 | 12,667 | 1.49 | (.15 | ) | .79 | .55 | 12 | |||||||||||||||||||
| 6.34 | 8,591 | 1.66 | .03 | .82 | .87 | 22 | ||||||||||||||||||||
| (34.15 | ) | 6,043 | 1.31 | .60 | .82 | 1.09 | 19 | |||||||||||||||||||
| 8.56 | 9,109 | 1.12 | .63 | .83 | .92 | 12 | ||||||||||||||||||||
| 5.25 | 1,330 | 1.90 | (.58 | ) | 1.58 | (.26 | ) | 14 | ||||||||||||||||||
| 24.93 | 1,645 | 2.24 | (.90 | ) | 1.54 | (.20 | ) | 12 | ||||||||||||||||||
| 5.60 | 1,380 | 2.41 | (.67 | ) | 1.57 | .17 | 22 | |||||||||||||||||||
| (34.67 | ) | 1,531 | 2.06 | (.15 | ) | 1.57 | .34 | 19 | ||||||||||||||||||
| 7.78 | 2,916 | 1.87 | (.12 | ) | 1.58 | .17 | 12 | |||||||||||||||||||
| 5.79 | 11,824 | 1.44 | (.12 | ) | 1.08 | .24 | 14 | |||||||||||||||||||
| 25.55 | 4,795 | 1.74 | (.40 | ) | 1.04 | .30 | 12 | |||||||||||||||||||
| 6.08 | 2,512 | 1.91 | (.29 | ) | 1.07 | .55 | 22 | |||||||||||||||||||
| (34.33 | ) | 1,121 | 1.57 | .38 | 1.08 | .87 | 19 | |||||||||||||||||||
| 8.34 | 703 | 1.37 | .43 | 1.08 | .71 | 12 | ||||||||||||||||||||
| 6.33 | 40,135 | .90 | .42 | .58 | .75 | 14 | ||||||||||||||||||||
| 26.22 | 47,179 | 1.24 | .10 | .54 | .80 | 12 | ||||||||||||||||||||
| 6.50 | 43,179 | 1.41 | .35 | .57 | 1.19 | 22 | ||||||||||||||||||||
| (33.95 | ) | 54,932 | 1.06 | .84 | .57 | 1.33 | 19 | |||||||||||||||||||
| 8.84 | 114,343 | .87 | .87 | .58 | 1.16 | 12 | ||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions from Capital Gains include short-term capital gains, if any. |
| (c) | Total return is the combination of changes in net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (d) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
See accompanying notes to financial statements.
| Nuveen Investments | 97 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000))
1. General Information and Significant Accounting Policies
General Information
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (“FAF Advisors”), known as U.S. Bancorp Asset Management, Inc. (“USBAM”) effective January 1, 2011, entered into an agreement to sell a portion of FAF Advisors’ asset management business to Nuveen Investments, Inc. (“Nuveen”). Included in the sale was the part of FAF Advisors’ asset management business that advises the funds included in this report. The sale closed on December 31, 2010 (the “Sale”).
In connection with the Sale, the funds’ Board of Directors was asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. The new investment advisory agreements for each fund were submitted to the funds’ shareholders for approval and took effect on January 1, 2011. Effective January 1, 2011, the funds’ adviser, Nuveen Asset Management, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors” or the “Adviser”). Concurrently, the Adviser formed a wholly-owned subsidiary, Nuveen Asset Management, LLC (the “Sub-Adviser”), to house its portfolio management capabilities and to serve as the funds’ sub-adviser, and the funds’ portfolio managers became employees of the Sub-Adviser. This allocation of responsibilities between the Adviser and the Sub-Adviser affects each of the funds. The Adviser will compensate the Sub-Adviser for the portfolio management services it provides to the funds from each fund’s management fee.
There was no change in the funds’ investment objectives or policies as a result of the Sale. The Sale did result in a change to each fund’s name effective January 1, 2011.
Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors were renamed Class R3 and Class I Shares, respectively.
The funds’ Board of Directors also approved new distribution agreements with Nuveen Investments, LLC, a wholly-owned subsidiary of Nuveen. Effective April 30, 2011, Nuveen Investments, LLC changed its name to Nuveen Securities, LLC.
First American Investment Funds, Inc., known as Nuveen Investment Funds, Inc. effective April 4, 2011 (the “Trust”), is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Equity Index Fund (“Equity Index”) formerly known as First American Equity Index Fund, Nuveen Mid Cap Index Fund (“Mid Cap Index”) formerly known as First American Mid Cap Index Fund and Nuveen Small Cap Index Fund (“Small Cap Index”) formerly known as First American Small Cap Index Fund (each a “Fund” and collectively, the “Funds”), among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
Equity Index’s investment objective is to provide investment results that correspond to the performance of the Standard & Poor’s 500 Index (S&P 500 Index). Mid Cap Index’s investment objective is to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Composite Index (S&P MidCap 400 Index). Small Cap Index’s investment objective is to provide investment results that correspond to the performance of the Russell 2000 Index.
Each Fund generally invests at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks included in each Fund’s corresponding index. Each Fund also may invest in stock index futures contracts, options on stock indices and options on stock index futures (“derivatives”) on each Fund’s corresponding index. Each Fund may make these investments to maintain the liquidity needed to meet redemption requests, to increase the level of Fund assets devoted to replicating the composition of each Fund’s corresponding index and to reduce transaction costs.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors. These securities are generally classified as Level 2. When price quotes are not readily available, 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. In
| 98 | Nuveen Investments |
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.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. Futures contracts are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for Mid Cap Index and Small Cap Index and declared and distributed to shareholders quarterly for Equity Index. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Mid Cap Index and Small Cap Index receive substantial distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities must use estimates in reporting the character of their income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
| Nuveen Investments | 99 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Futures Contracts
Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and is authorized to invest in futures contracts in an attempt to manage such risk. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. Variation margin is recognized as a receivable or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2011, Equity Index invested in S&P 500 Index futures to convert cash into the equivalent of an S&P 500 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. Mid Cap Index invested in S&P Mid 400 Index futures to convert cash into the equivalent of an S&P Mid 400 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. Small Cap Index invested in Russell 2000 Index futures to convert cash into the equivalent of a Russell 2000 Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index.
The average number of futures contracts outstanding during the fiscal year ended October 31, 2011, were as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Average number of futures contracts outstanding* | 119 | 235 | 67 | |||||||||
| * | The average number of outstanding contracts is calculated based on the outstanding number of contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on futures contracts activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties 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.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
Income, realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
| 100 | Nuveen Investments |
Interfund Lending Program
During the period November 1, 2010 through December 31, 2010, pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Funds, along with other registered investment companies in the First American Funds family, were allowed to participate in an interfund lending program. This program provided an alternative credit facility allowing the Funds to borrow from, or lend money to, other participating funds. The Funds did not have any interfund lending transactions during the period November 1, 2010 through December 31, 2010. The exemptive order terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each Fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. If the value of the securities on loan increases [such that the level of collateralization falls below 102%], additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
U.S. Bank National Association (“U.S. Bank”) serves as the securities lending agent for the Funds in transactions involving the lending of portfolio securities on behalf of the Funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the SEC.
During the fiscal year ended October 31, 2011, U.S. Bank, as the securities lending agent, received fees that equaled up to 25% of each Fund’s net income from securities lending transactions through December 31, 2010, and 20% of such net income thereafter. U.S. Bank paid half of such fees to USBAM for certain securities lending services provided by USBAM. Collateral for securities on loan was invested in a money market fund administered by USBAM, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities. USBAM received an administration fee equal to .02% of each Fund’s average daily net assets invested in the money market fund.
Income from securities lending, net of fees paid to U.S. Bank, is recognized on the Statement of Operations as “Securities lending income.” Securities lending fees paid to U.S. Bank by each Fund during the fiscal year ended October 31, 2011, were as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Securities lending fees paid | $ | 38 | $ | 27 | $ | 27 | ||||||
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
| Level 1 – | Quoted prices in active markets for identical securities. | |
| Level 2 – | Other significant observable inputs, (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
| Nuveen Investments | 101 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2011:
| Equity Index | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 692,976 | $ | — | $ | — | $ | 692,976 | ||||||||
Money Market Funds* | 190,918 | — | — | 190,918 | ||||||||||||
Short-Term Investments | 45,703 | 6,399 | — | 52,102 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 1,260 | — | — | 1,260 | ||||||||||||
Total | $ | 930,857 | $ | 6,399 | $ | — | $ | 937,256 | ||||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
| Mid Cap Index | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 280,843 | $ | — | $ | — | *** | $ | 280,843 | |||||||
Money Market Funds* | 96,167 | — | — | 96,167 | ||||||||||||
Short-Term Investments | 24,620 | 2,150 | — | 26,770 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 1,506 | — | — | 1,506 | ||||||||||||
Total | $ | 403,136 | $ | 2,150 | $ | — | *** | $ | 405,286 | |||||||
| Small Cap Index | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: | ||||||||||||||||
Common Stocks | $ | 65,945 | $ | — | $ | 3 | $ | 65,948 | ||||||||
Rights | — | — | — | *** | — | *** | ||||||||||
Warrants | — | — | 1 | 1 | ||||||||||||
Money Market Funds* | 31,809 | — | — | 31,809 | ||||||||||||
Short-Term Investments | 5,980 | 920 | — | 6,900 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 428 | — | — | 428 | ||||||||||||
Total | $ | 104,162 | $ | 920 | $ | 4 | $ | 105,086 | ||||||||
| * | Represents the Fund’s investments purchased with collateral from securities lending. |
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
| *** | Level 3 security has a market value of zero. |
The following is a reconciliation of the Funds’ Level 3 investments held at the beginning and end of the measurement period:
| Mid Cap Index Level 3 Common Stocks | ||||
Balance at the beginning of year | $ | — | ||
Gains (losses): | ||||
Net realized gains (losses) | — | |||
Net change in unrealized appreciation (depreciation) | — | |||
Purchases at cost | — | |||
Sales at proceeds | — | |||
Net discounts (premiums) | — | |||
Transfers in to | — | |||
Transfers out of | — | |||
Balance at the end of year | $ | — | *** | |
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011 | $ | — | ||
| 102 | Nuveen Investments |
| Small Cap Index Level 3 Common Stocks | Small Cap Index Level 3 Rights | Small Cap Index Level 3 Warrants | Small Cap Index Level 3 Total | |||||||||||||
Balance at the beginning of year | $ | — | $ | — | $ | — | *** | $ | — | *** | ||||||
Gains (losses): | ||||||||||||||||
Net realized gains (losses) | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | — | — | 1 | 1 | ||||||||||||
Purchases at cost | — | — | — | — | ||||||||||||
Sales at proceeds | — | — | — | — | ||||||||||||
Net discounts (premiums) | — | — | — | — | ||||||||||||
Transfers in to | 3 | — | — | 3 | ||||||||||||
Transfers out of | — | — | — | — | ||||||||||||
Balance at the end of year | $ | 3 | $ | — | *** | $ | 1 | $ | 4 | |||||||
Change in net unrealized appreciation (depreciation) during the year of Level 3 securities held as of October 31, 2011 | $ | (102 | ) | $ | — | $ | 1 | $ | (101 | ) | ||||||
| *** | Level 3 security has a market value of zero. |
During the fiscal ended October 31, 2011, the Fund recognized no significant transfers to or from Level 1 or Level 2. Transfers in and/or out of Level 3 are shown using end of period values.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.
The following tables present the fair value of all derivative instruments held by the Funds as of October 31, 2011, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
| Equity Index | ||||||||||||||
| Location on the Statement of Assets and Liabilities | ||||||||||||||
Underlying Risk Exposure | Derivative Instrument | Asset Derivatives | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 1,260 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | — | |||||||
| Mid Cap Index | ||||||||||||||
| Location on the Statement of Assets and Liabilities | ||||||||||||||
Underlying Risk Exposure | Derivative Instrument | Asset Derivatives | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 1,506 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | — | |||||||
| Small Cap Index | ||||||||||||||
| Location on the Statement of Assets and Liabilities | ||||||||||||||
Underlying Risk Exposure | Derivative Instrument | Asset Derivatives | Liability Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Equity | Futures Contracts | Deposits with brokers for open futures contracts and Receivable for variation margin on futures contracts* | $ | 428 | Deposits with brokers for open futures contracts and Payable for variation margin on futures contracts* | $ | — | |||||||
| * | Value represents cumulative gross unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the deposits with brokers, if any, or the receivable or payable for variation margin on futures contracts presented on the Statement of Assets and Liabilities. |
| Nuveen Investments | 103 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2011, on derivative instruments, as well as the primary risk exposure associated with each.
| Net Realized Gain (Loss) from Futures Contracts | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Risk Exposure | ||||||||||||
Equity | $ | 5,310 | $ | (65 | ) | $ | 122 | |||||
| Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Risk Exposure | ||||||||||||
Equity | $(1,853) | $ | 653 | $ | 143 | |||||||
4. Fund Shares
Transactions in Fund shares were as follows:
| Equity Index | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 817 | $ | 17,731 | 684 | $ | 13,953 | ||||||||||
Class B | — | 4 | 2 | 45 | ||||||||||||
Class C | 37 | 807 | 31 | 641 | ||||||||||||
Class R3(1) | 874 | 18,843 | 236 | 4,795 | ||||||||||||
Class I(1) | 3,254 | 70,570 | 4,435 | 91,079 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 412 | 8,777 | 92 | 1,881 | ||||||||||||
Class B | 22 | 461 | 4 | 77 | ||||||||||||
Class C | 25 | 526 | 4 | 72 | ||||||||||||
Class R3(1) | 53 | 1,132 | 8 | 168 | ||||||||||||
Class I(1) | 1,697 | 36,161 | 390 | 8,001 | ||||||||||||
| 7,191 | 155,012 | 5,886 | 120,712 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,238 | ) | (27,110 | ) | (1,316 | ) | (26,818 | ) | ||||||||
Class B | (169 | ) | (3,678 | ) | (188 | ) | (3,779 | ) | ||||||||
Class C | (79 | ) | (1,706 | ) | (92 | ) | (1,866 | ) | ||||||||
Class R3(1) | (868 | ) | (18,864 | ) | (219 | ) | (4,447 | ) | ||||||||
Class I(1) | (11,942 | ) | (262,511 | ) | (13,840 | ) | (281,599 | ) | ||||||||
| (14,296 | ) | (313,869 | ) | (15,655 | ) | (318,509 | ) | |||||||||
Net increase (decrease) | (7,105 | ) | $ | (158,857 | ) | (9,769 | ) | $ | (197,797 | ) | ||||||
| Mid Cap Index | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 3,593 | $ | 47,969 | 1,393 | $ | 15,229 | ||||||||||
Class C | 77 | 1,029 | 46 | 476 | ||||||||||||
Class R3(1) | 4,088 | 53,834 | 1,489 | 16,123 | ||||||||||||
Class I(1) | 3,631 | 48,404 | 3,623 | 38,910 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 19 | 243 | 16 | 169 | ||||||||||||
Class C | — | — | — | 2 | ||||||||||||
Class R3(1) | 11 | 148 | 7 | 77 | ||||||||||||
Class I(1) | 46 | 603 | 79 | 837 | ||||||||||||
| 11,465 | 152,230 | 6,653 | 71,823 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,307 | ) | (17,153 | ) | (754 | ) | (8,091 | ) | ||||||||
Class C | (79 | ) | (1,003 | ) | (78 | ) | (821 | ) | ||||||||
Class R3(1) | (1,218 | ) | (16,165 | ) | (561 | ) | (6,053 | ) | ||||||||
Class I(1) | (4,679 | ) | (62,871 | ) | (3,976 | ) | (43,716 | ) | ||||||||
Class I(1)-in-kind | (2,671 | ) | (35,015 | ) | — | — | ||||||||||
| (9,954 | ) | (132,207 | ) | (5,369 | ) | (58,681 | ) | |||||||||
Net increase (decrease) | 1,511 | $ | 20,023 | 1,284 | $ | 13,142 | ||||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
| 104 | Nuveen Investments |
| Small Cap Index | ||||||||||||||||
| Year Ended 10/31/11 | Year Ended 10/31/10 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,149 | $ | 12,460 | 562 | $ | 4,995 | ||||||||||
Class C | 25 | 266 | 15 | 131 | ||||||||||||
Class R3(1) | 1,009 | 10,725 | 275 | 2,425 | ||||||||||||
Class I(1) | 737 | 7,953 | 1,017 | 9,236 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 7 | 77 | 6 | 56 | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3(1) | 2 | 22 | 2 | 15 | ||||||||||||
Class I(1) | 15 | 166 | 16 | 140 | ||||||||||||
| 2,944 | 31,669 | 1,893 | 16,998 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (576 | ) | (6,079 | ) | (375 | ) | (3,387 | ) | ||||||||
Class C | (65 | ) | (661 | ) | (23 | ) | (200 | ) | ||||||||
Class R3(1) | (346 | ) | (3,648 | ) | (106 | ) | (942 | ) | ||||||||
Class I(1) | (1,673 | ) | (18,669 | ) | (1,730 | ) | (15,806 | ) | ||||||||
| (2,660 | ) | (29,057 | ) | (2,234 | ) | (20,335 | ) | |||||||||
Net increase (decrease) | 284 | $ | 2,612 | (341 | ) | $ | (3,337 | ) | ||||||||
| (1) | Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by FAF Advisors, Inc. were renamed Class R3 Shares and Class I Shares, respectively. |
Class B Shares that converted to Class A Shares (reflected above as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2011 and October 31, 2010, were as follows:
| Fund | Year Ended 10/31/11 | Year Ended 10/31/10 | ||||||
Equity Index | 115 | 126 | ||||||
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending, short-term investments and derivative transactions) during the fiscal year ended October 31, 2011, were as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Purchases | $ | 16,828 | $ | 72,864 | $ | 11,220 | ||||||
Sales | 231,202 | 63,490 | 9,919 | |||||||||
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Cost of investments | $ | 675,272 | $ | 372,227 | $ | 95,489 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | 328,144 | 59,145 | 19,706 | |||||||||
Depreciation | (67,420 | ) | (27,592 | ) | (10,537 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 260,724 | $ | 31,553 | $ | 9,169 | ||||||
| Nuveen Investments | 105 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Permanent differences, primarily due to tax equalization, redemption in-kind, distribution reclass and REIT adjustments, resulted in reclassifications among the Funds’ components of net assets at October 31, 2011, the Funds’ tax year-end, as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Capital paid-in | $ | 7,943 | $ | 14,733 | $ | — | ||||||
Undistributed (Over-distribution of) net investment income | (151 | ) | — | (18 | ) | |||||||
Accumulated net realized gain (loss) | (7,792 | ) | (14,733 | ) | 18 | |||||||
The tax components of undistributed net ordinary income and net long-term capital gains at October 31, 2011, the Funds’ tax year end, were as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Undistributed ordinary income* | $ | 3,409 | $ | 1,291 | $ | 264 | ||||||
Undistributed net long-term capital gains | 51,935 | 11,191 | — | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2011 and October 31, 2010, was designated for purposes of the dividends paid deduction as follows:
| 2011 | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Distributions from net ordinary income* | $ | 14,500 | $ | 1,851 | $ | 485 | ||||||
Distributions from net long-term capital gains | 52,878 | — | — | |||||||||
| 2010 | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Distributions from net ordinary income* | $ | 15,255 | $ | 1,965 | $ | 418 | ||||||
Distributions from net long-term capital gains | 2,048 | — | — | |||||||||
| * | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
At October 31, 2011, the Funds’ tax year end, the following Fund had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
| Small Cap Index | ||||
Expiration year: | ||||
October 31, 2017 | $ | 611 | ||
During the Funds’ tax year ended October 31, 2011, the following Funds utilized their capital loss carryforwards as follows:
| Mid Cap Index | Small Cap Index | |||||||
Utilized capital loss carryforwards | $ | 251 | $ | 5,035 | ||||
7. Management Fees and Other Transactions with Affiliates
Investment Advisory Fees
During the period November 1, 2010 through December 31, 2010, pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors managed each Fund’s assets and furnished related office facilities, equipment, research, and personnel. The Agreement required each Fund to pay FAF Advisors a monthly advisory fee, on an annual basis, equal to each Fund’s average daily net assets as follows:
| Fund | Advisory Fee Rate | |||
Equity Index | .2500 | % | ||
Mid Cap Index | .2500 | |||
Small Cap Index | .4000 | |||
Effective January 1, 2011, pursuant to a new investment advisory agreement (the “New Agreement”), the Funds’ new investment adviser is Nuveen Fund Advisors. Under the New Agreement, 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 Nuveen Fund Advisors. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by Nuveen Fund Advisors.
| 106 | Nuveen Investments |
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Equity Fund-Level Fee Rate | Mid Cap Fund-Level Fee Rate | Small Cap Fund-Level Fee Rate | |||||||||
For the first $125 million | .1000 | % | .1500 | % | .1500 | % | ||||||
For the next $125 million | .0875 | % | .1375 | % | .1375 | % | ||||||
For the next $250 million | .0750 | % | .1250 | % | .1250 | % | ||||||
For the next $500 million | .0625 | % | .1125 | % | .1125 | % | ||||||
For the next $1 billion | .0500 | % | .1000 | % | .1000 | % | ||||||
For net assets over $2 billion | .0250 | % | .0750 | % | .0750 | % | ||||||
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex-level fee schedule for each Fund is as follows:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | % | ||
$57 billion | .1989 | % | ||
$60 billion | .1961 | % | ||
$63 billion | .1931 | % | ||
$66 billion | .1900 | % | ||
$71 billion | .1851 | % | ||
$76 billion | .1806 | % | ||
$80 billion | .1773 | % | ||
$91 billion | .1691 | % | ||
$125 billion | .1599 | % | ||
$200 billion | .1505 | % | ||
$250 billion | .1469 | % | ||
$300 billion | .1445 | % | ||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of $2 billion added to the Nuveen fund complex in connection with Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by Nuveen Fund Advisors that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ 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 the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by Nuveen Fund Advisors as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2011, the complex-level fee rates for each Fund was as follows: |
| Fund | Complex-Level Fee Rate | |||
Equity Index | .2000 | % | ||
Mid Cap Index | .1935 | % | ||
Small Cap Index | .1967 | % | ||
The management fee compensates Nuveen Fund Advisors for the overall investment advisory and administrative services and general office facilities it provides for the Funds. Nuveen Fund Advisors is responsible for each Fund’s overall strategy and asset allocation decisions. Effective January 1, 2011, Nuveen Fund Advisors has entered into a sub-advisory agreement with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser will be compensated for its services to the Funds from the management fees paid to Nuveen Fund Advisors.
During the period November 1, 2010 through December 31, 2010, the Funds may have invested in related money market funds that were a series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acted as the investment advisor to both the investing Funds and the related money market funds, FAF Advisors reimbursed the investing Funds an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that was attributable to the assets of the investing Funds. This reimbursement, if any, is recognized as a component of “Expense reimbursement” on the Statement of Operations and terminated with respect to the Funds on December 31, 2010, in connection with the Sale.
| Nuveen Investments | 107 |
Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
During the period November 1, 2010, through December 31, 2010, FAF Advisors agreed to contractually waive fees and reimburse other Fund expenses, so that total annual Fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange traded funds and other investment companies, as a percentage of each Fund’s average daily net assets, did not exceed the following amounts:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Class A Shares | .62 | % | .75 | % | .83 | % | ||||||
Class B Shares | 1.37 | N/A | N/A | |||||||||
Class C Shares | 1.37 | 1.50 | 1.58 | |||||||||
Class R3 Shares (1) | .87 | 1.00 | 1.08 | |||||||||
Class I Shares (1) | .37 | .50 | .58 | |||||||||
Expiration date | February 28, 2011 | February 28, 2011 | February 28, 2011 | |||||||||
| N/A | - Mid Cap Index and Small Cap Index do not offer Class B Shares. |
| (1) | - Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by, FAF Advisors, Inc. were renamed Class R3 and Class I Shares, respectively. |
Effective January 1, 2011, Nuveen Fund Advisors agreed to waive fees and reimburse other Fund expenses of each Fund so that total annual Fund operating expenses, after waivers and excluding any acquired Fund fees and expenses, do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Class A Shares | .62 | % | .75 | % | .83 | % | ||||||
Class B Shares | 1.37 | N/A | N/A | |||||||||
Class C Shares | 1.37 | 1.50 | 1.58 | |||||||||
Class R3 Shares (1) | .87 | 1.00 | 1.08 | |||||||||
Class I Shares (1) | .37 | .50 | .58 | |||||||||
Expiration date | February 29, 2012 | February 29, 2012 | February 29, 2012 | |||||||||
| N/A | - Mid Cap Index and Small Cap Index do not offer Class B Shares. |
| (1) | - Effective January 18, 2011, Class R Shares and Class Y Shares previously offered by, FAF Advisors, Inc. were renamed Class R3 and Class I Shares, respectively. |
During the period November 1, 2010 through December 31, 2010, independent directors of the Funds may have participated and elected to defer receipt of part or all of their annual compensation under a deferred compensation plan (the “Plan”). Deferred amounts were treated as though equivalent dollar amounts had been invested in shares of selected First American open-end funds as designated by each director. All amounts in the Plan were 100% vested and accounts under the Plan were obligations of the Funds. Deferred amounts remain in the Funds until distributed in accordance with the Plan.
Effective January 1, 2011, independent directors may elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Funds advised by Nuveen Fund Advisors. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Funds advised by Nuveen Fund Advisors.
Administration Fees
During the period November 1, 2010 through December 31, 2010, FAF Advisors served as the Funds’ administrator pursuant to an administration agreement between FAF Advisors and the Funds. U.S. Bancorp Fund Services, LLC (“USBFS”) served as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors was compensated to provide, or compensated other entities to provide, services to the Funds. These services included various legal, oversight, and administrative and accounting services. The Funds paid FAF Advisors administration fees, which were calculated daily and paid monthly, equal to each Fund’s pro rata share of an amount equal, on an annual basis, to .25% of the aggregate average daily net assets of all open-end funds in the First American Funds family up to $8 billion, .235% on the next $17 billion of the aggregate average daily net assets, .22% on the next $25 billion of the aggregate average daily net assets and .20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator were paid from the administration fee. In addition to these fees, the Funds may have reimbursed FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. Effective January 1, 2011, FAF Advisors and USBFS no longer serve as the Funds’ administrator and sub-administrator, respectively, and the Funds have not entered into any new administration or sub-administration agreements.
Transfer Agent Fees
USBFS serves as the Funds’ transfer agent pursuant to a transfer agent agreement with the Trust. The Funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each Fund based upon the number of accounts within each Fund. In addition to these fees, the Funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
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Custodian Fees
U.S. Bank serves as the custodian for each Fund pursuant to a custodian agreement with the Trust. The custodian fee charged for each Fund is equal to an annual rate of .005% of average daily net assets. All fees are computed daily and paid monthly. Interest earned on uninvested cash balances is used to reduce a portion of each Fund’s custodian expenses. These credits, if any, are recognized as “Custodian fee credit” on the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the Funds’ custodian expenses.
Distribution and Shareholder Servicing (12b-1) Fees
During the period November 1, 2010 through December 31, 2010, Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, served as the distributor of the Funds pursuant to a distribution agreement with the Trust. Under the distribution agreement, and pursuant to a plan adopted by each Fund under Rule 12b-1 of the Investment Company Act, each Fund paid Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of .25%, 1.00%, 1.00% and .50% of each Fund’s average daily net assets of Class A, Class B, Class C and Class R Shares (renamed Class R3 Shares), respectively. No distribution or shareholder servicing fees were paid by Class Y Shares (renamed Class I Shares). These fees may have been used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities. During the period November 1, 2010 through December 31, 2010, there were no distribution and shareholder servicing fees waived by Quasar.
Effective January 1, 2011, the Funds have entered into a distribution agreement with Nuveen Securities LLC, who now serves as the Funds’ distributor. Under the new agreement, Class A Shares continue to incur a .25% annual 12b-1 service fee. Class B Shares and Class C Shares continue to incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class R3 Shares continue to incur a .25% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class I Shares continue to not be subject to any sales charge or 12b-1 distribution or service fees. Annual distribution and service fees are based on average daily net assets.
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Sales charges collected (Unaudited) | $ | 16 | $ | 11 | $ | 2 | ||||||
Paid to financial intermediaries (Unaudited) | 15 | 10 | 1 | |||||||||
During the fiscal year ended October 31, 2011, Quasar and/or Nuveen Securities, LLC compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Commission advances (Unaudited) | $ | 5 | $ | 9 | $ | 2 | ||||||
Quasar and/or Nuveen Securities, LLC also received 12b-1 service fees in Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
All 12b-1 service and distribution fees collected on Class B and C Shares during the first year following a purchase were retained by Quasar and/or the Distributor to compensate for commissions advanced to financial intermediaries. During the six months ended April 30, 2011, Quasar and/or Nuveen Securities LLC retained such 12b-1 fees as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
12b-1 fees retained (Unaudited) | $ | 50 | $ | 6 | $ | 2 | ||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
Other Fees and Expenses
In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each Fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. During the period November 1, 2010 through December 31, 2010, legal fees and expenses of $3 were paid to a law firm of which an Assistant Secretary of the Funds was a partner.
Contingent Deferred Sales Charges
During the period November 1, 2010 through January 17, 2011, Class A Shares of the Funds were sold with an up-front sales charge of 5.50%. Class B Shares were subject to a contingent deferred sales charge (“CDSC”) of up to 5% depending upon the length of time the shares were held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares were subject to a CDSC of 1% for twelve months. Class R Shares (renamed Class R3 Shares) and Class Y Shares (renamed Class I Shares) had no sales charge and were offered only to certain qualifying accounts and qualifying institutional investors, respectively.
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Notes to Financial Statements (all dollars and shares are rounded to thousands (000)) (continued)
Effective January 18, 2011, the Funds only issue Class A Shares for purchase by certain retirement plans and by qualifying clients of investment advisers, financial planners or other financial intermediaries that charge periodic or asset-based fees for their service. Class A Shares are offered to these investors at their net asset value per share with no up-front sales charge. Class A Share purchases of the Funds continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class B Shares continue to be subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC continues to be reduced to 0% at the end of six years). Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares continue to be subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares and Class I Shares continue to have no sales charge and are offered only to certain qualifying accounts and qualifying institutional investors, respectively.
Quasar and/or the Nuveen Securities, LLC also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2011, as follows:
| Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
CDSC retained (Unaudited) | $ | 6 | $ | 1 | $ | — | ||||||
Affiliated Retirement Plan and Redemptions In-Kind
An affiliated pension plan of FAF Advisors, (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, in the amounts as follows:
Mid Cap Index | $ | 35,015 |
In these transactions, the Fund paid redemption proceeds by distributing a proportionate amount of securities in their respective portfolios. Remaining shareholders in the Fund did not recognize any capital gains from the transactions.
8. New Accounting Pronouncements
Fair Value Measurements and Disclosures
On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, and the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
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Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. 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.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
| Independent Trustees: | ||||||||
Robert P. Bremner (2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 241 | ||||
Jack B. Evans 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; member of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College and the Iowa College Foundation; 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. | 241 | ||||
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International 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. | 241 | ||||
David J. Kundert (2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Director, Northwestern Mutual Wealth Management Company; 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; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation. | 241 | ||||
William J. Schneider (2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System Board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 241 | ||||
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 241 | ||||
Carole E. Stone (2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 241 | ||||
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Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) During Past Five Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Virginia L. Stringer 8/16/44 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 241 | ||||
Terence J. Toth (2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Board (since 2005) and Catalyst Schools of Chicago Board (since 2008); 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). | 241 | ||||
| Interested Trustee: | ||||||||
John P. Amboian (3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Chief Executive Officer and Chairman (since 2007), and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), Assistant Secretary and Associate General Counsel 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, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 241 | ||||
Margo L. Cook 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 241 | ||||
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Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, Inc. and Nuveen Securities, LLC (since 2004). | 241 | ||||
Stephen D. Foy 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, Inc.; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 241 | ||||
Scott S. Grace 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since (2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 241 | ||||
Walter M. Kelly 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, Inc. | 241 | ||||
Tina M. Lazar 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 241 | ||||
Larry W. Martin 7/27/51 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 1997 | Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Securities, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers, Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007), and of Winslow Capital Management, Inc. (since 2010); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 241 |
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Trustees and Officers (Unaudited) (continued)
Name, Birthdate and Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Kevin J. McCarthy 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, Nuveen HydePark Group, LLC, Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 241 | ||||
Kathleen L. Prudhomme 3/30/53 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; 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). | 241 | ||||
Jeffery M. Wilson 3/13/56 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011), formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
| (3) | Mr. Amboian is an interested trustee because 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 Fund Complex. |
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Annual Investment Management Agreement Approval Process
(Unaudited)
A. Background
Prior to January 1, 2011, FAF Advisors, Inc. (“FAF”), a wholly-owned subsidiary of U.S. Bank National Association (“U.S. Bank”), served as investment adviser to each Fund pursuant to an investment advisory agreement between First American Investment Funds, Inc. (the “Company”) and FAF (the “Prior Advisory Agreement”), and as administrator to each Fund pursuant to an administrative agreement between the Company and FAF (the “Prior Administrative Agreement”). On July 29, 2010, U.S. Bank and FAF entered into a definitive agreement with Nuveen Investments, Inc. (“Nuveen”), Nuveen Asset Management (“NAM”) and certain Nuveen affiliates, whereby NAM would acquire a portion of the asset management business of FAF (the “Transaction”). The acquired business included the assets of FAF used in providing investment advisory services, research, sales and distribution in connection with equity, fixed income, real estate, global infrastructure and asset allocation investment products (other than the money market business and closed-end funds advised by FAF), including the Funds. In connection with the Transaction, the Board of Directors (the “Prior Board”) serving the Funds as directors at that time (each a “Prior Director” and, collectively, the “Prior Directors”) considered a number of proposals designed to integrate the Funds into the Nuveen family of funds, including the appointment of NAM as investment adviser and Nuveen Investments, LLC as distributor to the Funds. The Prior Board also considered a proposal in connection with an internal restructuring of NAM (the “Restructuring”), for Nuveen Asset Management, LLC (“NAM LLC”), a wholly-owned subsidiary of NAM formed in anticipation of the Restructuring, to serve as sub-advisor for each Fund.
The Prior Board approved a new investment advisory agreement (the “New Advisory Agreement”) for each Fund with NAM and an investment sub-advisory agreement between NAM and NAM LLC (the “NAM Sub-Advisory Agreement”). At a meeting of the Funds’ stockholders held on December 17, 2010 (adjourned until December 29, 2010 for the Nuveen Small Cap Index Fund (formerly known as the Small Cap Index Fund)), stockholders of the Funds approved the New Advisory Agreement and the NAM Sub-Advisory Agreement. In addition, stockholders of the Company’s funds (including the Funds) elected ten directors, including one Prior Director, to the board of directors of the Company (the “New Board”).
On December 31, 2010, the Transaction closed and the New Board (which replaced the Prior Board) took effect. On January 1, 2011, the New Advisory Agreement and the NAM Sub-Advisory Agreement became effective. In addition, in connection with the Restructuring, NAM has changed its name to Nuveen Fund Advisors, Inc. (“NFA”). The following is a summary of the considerations of the Prior Board, which were set forth in a proxy statement dated November 10, 2010 (the “Proxy Statement”), in approving the New Advisory Agreement and the NAM Sub-Advisory Agreement for the Funds.
B. Prior Board Considerations
The New Advisory Agreement for each Fund was approved by the Prior Board after consideration of all factors determined to be relevant to its deliberations, including those discussed below. The Prior Board authorized the submission of the New Advisory Agreement for consideration by each Fund’s stockholders.
At meetings held in May and June of 2010, the Prior Board was apprised of the general terms of the Transaction and, as a result, began the process of considering the transition of services from FAF to NFA. In preparation for its September 21-23, 2010 meeting, the Prior Board received, in response to a written due diligence request prepared by the Prior Board and its independent legal counsel and provided to NFA and FAF, a significant amount of information covering a range of issues in advance of the meeting. To assist the Prior Board in its consideration of the New Advisory Agreement for each Fund, NFA provided materials and information about, among other things: (1) NFA and its affiliates, including their history and organizational structure, product lines, experience in providing investment advisory, administrative and other services, and financial condition, (2) the nature, extent and quality of services to be provided under the New Advisory Agreement, (3) proposed Fund fees and expenses and comparative information relating thereto, and (4) NFA’s compliance and risk management capabilities and processes. In addition, the Prior Board was provided with a memorandum from independent legal counsel outlining the legal duties of the Prior Board under the Investment Company Act of 1940, as amended (the “1940 Act”). In response to further requests from the Prior Board and its independent legal counsel, NFA and FAF provided additional information to the Prior Board following its September 21-23 meeting.
An additional in-person meeting of the Prior Board to consider the New Advisory Agreement was held on October 7, 2010, at which the members of the Prior Board in attendance, all of whom were not considered to be “interested persons” of the Company as defined in the 1940 Act (the “Independent Prior Directors”), approved the New Advisory Agreement with NFA for each Fund.
In considering the New Advisory Agreement for each Fund, the Prior Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of services to be rendered to the Funds by NFA, (2) the cost of services to be provided, including Fund expense information, and (3) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale.
In considering the New Advisory Agreement, the Prior Board did not identify any particular information that was all-important or controlling, and each Prior Director may have attributed different weights to the various factors discussed below. Where appropriate, the Prior Directors evaluated all information available to them regarding the Company’s funds on a fund-by-fund basis, and their determinations were made separately with respect to each such fund (including each of the Funds). The Prior Directors, all of whom were Independent Prior Directors, concluded that the terms of the New Advisory Agreement and the fee rates to be paid in light of
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Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
the services to be provided to each Fund are in the best interests of each Fund, and that the New Advisory Agreement should be approved and recommended to stockholders for approval. In voting to approve the New Advisory Agreement with respect to each Fund, the Prior Board considered in particular the following factors:
Nature, Extent and Quality of Services. In considering approval of the New Advisory Agreement, the Prior Board considered the nature, extent and quality of services to be provided by NFA, including advisory services and administrative services. The Prior Board reviewed materials outlining, among other things, NFA’s organizational structure and business; the types of services that NFA or its affiliates are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and fund product lines offered by NFA. The Prior Board considered that affiliation with a larger fund complex and well-recognized sponsor may result in a broader distribution network, potential economies of scale with respect to other services or fees and broader shareholder services including exchange options.
With respect to personnel, the Prior Board considered information regarding retention plans for current FAF employees who would be offered employment by NFA, and the background and experience of NFA employees who would become portfolio managers as of the closing of the Transaction. The Prior Board also reviewed information regarding portfolio manager compensation arrangements to evaluate NFA’s ability to attract and retain high quality investment personnel.
In evaluating the services of NFA, the Prior Board also considered NFA’s ability to supervise the Funds’ other service providers and, given the importance of compliance, NFA’s compliance program. Among other things, the Prior Board considered the report of NFA’s chief compliance officer regarding NFA’s compliance policies and procedures.
In addition to advisory services, the Prior Board considered the quality of administrative services expected to be provided by NFA and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support.
The Prior Board considered that, based on representations from FAF and NFA, the Transaction would allow stockholders to continue their investment in each of the Company’s funds with the same investment objective and principal strategies and, in most cases, the same portfolio management team. In light of the continuity of investment personnel in most cases (with respect to the Company’s funds in the aggregate), the Prior Board considered the historical investment performance of each of the Company’s funds (including each Fund) previously provided during the annual contract renewal process.
Cost of Services Provided by NFA. In evaluating the costs of the services to be provided by NFA under the New Advisory Agreement, the Prior Board received a comparison of each Fund’s annual operating expenses as of June 30, 2010 under the Prior Advisory Agreement and under the New Advisory Agreement, in each case adjusted to reflect a decrease in net assets for certain of the Company’s funds from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction. The Prior Board considered, among other things, that the advisory fee rates and other expenses would change as a result of NFA serving as investment adviser to each Fund. The Prior Board noted that the services provided by NFA under the New Advisory Agreement would include certain administrative services, which services (along with other services) were provided pursuant to the Prior Administrative Agreement and were charged separately from the advisory fee. Accordingly, the Prior Board considered that the fee rates paid under the New Advisory Agreement include bundled investment advisory and administrative fees and thus are higher than the fee rates paid under the Prior Advisory Agreement for most of the Company’s funds, but lower than the combined fee rates paid under the Prior Advisory Agreement and the Prior Administrative Agreement. The Prior Board also noted that certain administrative services provided under the Prior Administrative Agreement would not be provided under the New Advisory Agreement and will be delegated to other service providers. Similarly, certain fees paid by FAF under the Prior Administrative Agreement will not be paid by NFA under the New Advisory Agreement and will be paid directly by the Funds. However, immediately following the closing of the Transaction, the net expense ratio of each Fund was expected to be the same or lower than the Fund’s net expense ratio as of June 30, 2010, adjusted (where applicable) to reflect a decrease in net assets resulting from redemptions by the U.S. Bank 401(k) Plan expected to occur prior to the closing of the Transaction, assuming the Fund’s net assets at the time of the closing of the Transaction were no lower than their adjusted June 30 level. In addition, the Prior Board noted that NFA has committed to certain undertakings to maintain current fee caps and/or to waive fees or reimburse expenses to maintain net management fees at certain levels and Nuveen has represented to the Prior Board that Nuveen and its affiliates will not take any action that imposes an “unfair burden” on any Fund as a result of the Transaction. The Prior Board also considered that fees payable under the New Advisory Agreement include both a fund-level fee and a complex-level fee, and that schedules for the fund-level and complex-level fees contain breakpoints that are based, respectively, on Fund assets and Nuveen complex-wide assets. The Prior Board considered that breakpoints in the fund-level fee allow for the possibility that this portion of the advisory fee could decline in the future if Fund assets were to increase or increase in the future if Fund assets were to decline. The Prior Board also considered that breakpoints in the complex-level fee allow for the possibility that this portion of the advisory fee could decline in the future if complex-wide assets were to increase or increase in the future if complex-wide assets were to decline, regardless, in each case, of whether assets of the particular Fund had increased or decreased.
In considering the compensation to be paid to NFA, the Prior Board also reviewed fee information regarding NFA-sponsored funds, to the extent such funds had similar investment objectives and strategies to the Funds. The Prior Board reviewed information provided by NFA regarding similar funds managed by NFA and noted that the fee rates payable by these funds were generally comparable to the fee rates proposed for the Company’s funds. The Prior Board also compared proposed fee and expense information to the median fees and expenses of comparable funds, using information provided by an independent data service.
| 116 | Nuveen Investments |
In evaluating the compensation, the Prior Board also considered other amounts expected to be paid to NFA by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NFA and its affiliates are expected to receive, that are directly attributable to the management of the Funds.
The Prior Board also considered that the Funds would not bear any of the costs relating to the Transaction, including the costs of preparing, printing and mailing the Proxy Statement.
Economies of Scale. The Prior Board reviewed information regarding potential economies of scale or other efficiencies that might result from the Funds’ potential association with Nuveen. The Prior Board noted that the New Advisory Agreement provides for breakpoints in the Funds’ fund-level and complex-level management fee rates as the assets of the Funds and the assets held by the various registered investment companies sponsored by Nuveen increase, respectively. The Prior Board concluded that the structure of the investment management fee rates, with the breakpoints for the Funds under the New Advisory Agreement, reflected sharing of potential economies of scale with the Funds’ stockholders.
Conclusion. After deliberating in executive session, the members of the Prior Board in attendance, all of whom were Independent Prior Directors, approved the New Advisory Agreement with respect to each Fund, concluding that the New Advisory Agreement was in the best interests of each Fund.
NAM Sub-Advisory Agreement. The Prior Board also approved the NAM Sub-Advisory Agreement between NFA and NAM LLC as a result of the Restructuring expected to occur with NFA. The Prior Board considered that the services to be provided by NAM LLC under the NAM Sub-Advisory Agreement would not result in any material change in the nature or level of investment advisory services or administrative services provided to the Funds. In addition, the portfolio managers will continue to manage the Funds in their capacity as employees of NAM LLC. The Prior Board considered that NFA will pay a portion of the advisory fee it receives from each Fund to NAM LLC for its services as sub-advisor. The Prior Board concluded, based upon the conclusions that the Prior Board reached in connection with the approval of the New Advisory Agreement and after determining that it need not reconsider all of the factors that it had considered in connection with the approval of the New Advisory Agreement, to approve the NAM Sub-Advisory Agreement.
| Nuveen Investments | 117 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Lipper S&P 500 Index Objective Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper S&P 500 Index Objective Funds Classification. The Lipper S&P 500 Index Objective Funds Classification Average contained 158, 152 and 118 funds for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Mid-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Core Funds Classification. The Lipper Mid-Cap Core Funds Classification Average contained 314, 233 and 154 for the 1-year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
Lipper Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. The Lipper Small-Cap Core Funds Classification Average contained 708, 513 and 303 funds for the 1- year, 5-year and 10-year periods, respectively, ended October 31, 2011. Lipper returns account for the effects of management fees and assume reinvestment of dividends but do not reflect any applicable sales charges. The Lipper average is not available for direct investment
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Standard & Poors (S&P) 500® Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Standard & Poors (S&P) MidCap 400® Index: An unmanaged, market value-weighted index of 400 mid-cap companies. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges. It is not possible to invest directly in an index.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the Fund’s dividends paid deduction.
| 118 | Nuveen Investments |
Fund Manager
Nuveen Fund Advisors, Inc.
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Custodian
U.S. Bank National Association
St. Paul, MN
Transfer Agent and Shareholder Services
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
Distribution Information: The Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and their percentages as qualified dividend income (“QDI”) for individuals under Section 1 (h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
| Fund | % of DRD | % of QDI | ||||||
Nuveen Equity Index | 100 | % | 100 | % | ||||
Nuveen Mid Cap Index | 100 | % | 100 | % | ||||
Nuveen Small Cap Index | 98.17 | % | 100 | % | ||||
Long Term Capital Gain Distributions: The following Funds designate as a long term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amounts shown in the accompanying table or, if greater, the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2011:
| Fund | Long Term Capital Gain Dividend (000) | |||
Nuveen Equity Index Fund | $ | 60,787 | ||
Nuveen Mid Cap Index Fund | 2,540 | |||
Quarterly Portfolio of Investments and Proxy Voting information: You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
| Nuveen Investments | 119 |
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $207 billion of assets as of October 31, 2011.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MAN-FIDX-1011D
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/mf. (To view the code, click on the Shareholder Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Trustees determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial expert is Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that Ernst and Young LLP, the Trust’s auditor, billed to the Trust during the Trust’s last two full fiscal years. The Audit Committee approved in advance all audit services and non-audit services that provided to the Trust, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Trust waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Trust during the fiscal year in which the services are provided; (B) the Trust did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE TRUST’S AUDITOR BILLED TO THE TRUST
Fiscal Year Ended October 31, 2011 5 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Equity Index Fund | 20,000 | 0 | 1,056 | 0 | ||||||||||||
Global Infrastructure Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
International Fund | 21,875 | 0 | 2,303 | 0 | ||||||||||||
International Select Fund | 21,875 | 0 | 2,205 | 0 | ||||||||||||
Large Cap Growth Opportunities Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Large Cap Select Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Large Cap Value Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Mid Cap Growth Opportunities Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Mid Cap Index Fund | 20,000 | 0 | 1,056 | 0 | ||||||||||||
Mid Cap Select Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Mid Cap Value Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Quantitative Enhanced Core Equity Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Real Estate Securities Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Small Cap Growth Opportunities Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Small Cap Index Fund | 20,000 | 0 | 1,056 | 0 | ||||||||||||
Small Cap Select Fund | 21,875 | 0 | 0 | 0 | ||||||||||||
Small Cap Value Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
Tactical Market Opportunities Fund | 21,875 | 0 | 1,056 | 0 | ||||||||||||
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Total | $ | 410,000 | $ | 0 | $ | 21,404 | $ | 0 | ||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
| 2 | “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under “Audit Fees”. |
| 3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. |
| 4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit Related Fees”, and “Tax Fees”. |
| 5 | The Funds were acquired on December 31, 2010. |
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
| Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Equity Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Global Infrastructure Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
International Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
International Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Quantitative Enhanced Core Equity Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Real Estate Securities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Tactical Market Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Fiscal Year Ended October 31, 2010 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Equity Index Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Global Infrastructure Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
International Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
International Select Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Large Cap Growth Opportunities Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Large Cap Select Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Large Cap Value Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Mid Cap Growth Opportunities Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Mid Cap Index Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Mid Cap Select Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Mid Cap Value Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Quantitative Enhanced Core Equity Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Real Estate Securities Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Small Cap Growth Opportunities Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Small Cap Index Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Small Cap Select Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Small Cap Value Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
Tactical Market Opportunities Fund | 61,758 | 206 | 12,512 | 0 | ||||||||||||
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Total | $ | 1,173,402 | $ | 3,914 | $ | 237,728 | $ | 0 | ||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
| 2 | “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under “Audit Fees”. |
| 3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. |
| 4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit Related Fees”, and “Tax Fees”. |
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
| Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Equity Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Global Infrastructure Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
International Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
International Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Large Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Mid Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Quantitative Enhanced Core Equity Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Real Estate Securities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Small Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Tactical Market Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Fiscal Year Ended October 31, 2011 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Funds, Inc. | $ | 0 | $ | 0 | $ | 0 | ||||||
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
| Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | ||||||||||
| 0 | % | 0 | % | 0 | % | |||||||
Fiscal Year Ended October 31, 2010 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Funds, Inc. | $ | 0 | $ | 0 | $ | 0 | ||||||
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
| Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | ||||||||||
| 0 | % | 0 | % | 0 | % | |||||||
Fiscal Year Ended October 31, 2011 1 | Total Non-Audit Fees Billed to Trust | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Trust) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Equity Index Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Global Infrastructure Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
International Fund | 2,303 | 0 | 0 | 2,303 | ||||||||||||
International Select Fund | 2,205 | 0 | 0 | 2,205 | ||||||||||||
Large Cap Growth Opportunities Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Large Cap Select Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Large Cap Value Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Mid Cap Growth Opportunities Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Mid Cap Index Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Mid Cap Select Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Mid Cap Value Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Quantitative Enhanced Core Equity Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Real Estate Securities Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Small Cap Growth Opportunities Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Small Cap Index Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Small Cap Select Fund | 0 | 0 | 0 | 0 | ||||||||||||
Small Cap Value Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
Tactical Market Opportunities Fund | 1,056 | 0 | 0 | 1,056 | ||||||||||||
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|
|
| |||||||||
Total | $ | 21,404 | $ | 0 | $ | 0 | $ | 21,404 | ||||||||
“Non-Audit Fees Billed to Trust” represent “Tax Fees” and “All Other Fees” billed to each Fund in their respective amounts from the previous table.
| 1 | The Funds were acquired on December 31, 2010. |
Fiscal Year Ended October 31, 2010 | Total Non-Audit Fees Billed to Trust | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Trust) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
Name of Series | ||||||||||||||||
Equity Income Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Equity Index Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Global Infrastructure Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
International Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
International Select Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Large Cap Growth Opportunities Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Large Cap Select Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Large Cap Value Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Mid Cap Growth Opportunities Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Mid Cap Index Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Mid Cap Select Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Mid Cap Value Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Quantitative Enhanced Core Equity Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Real Estate Securities Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Small Cap Growth Opportunities Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Small Cap Index Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Small Cap Select Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Small Cap Value Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
Tactical Market Opportunities Fund | 12,512 | 0 | 0 | 12,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 237,728 | $ | 0 | $ | 0 | $ | 237,728 | ||||||||
“Non-Audit Fees Billed to Trust” represent “Tax Fees” and “All Other Fees” billed to each Fund in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Trust by the Trust’s independent accountants and (ii) all audit and non-audit services to be performed by the Trust’s independent accountants for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Trust. Regarding tax and research projects conducted by the independent accountants for the Trust and Affiliated Fund Service Providers (with respect to operations and financial reports of the Trust), such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee Chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
| a) | See Portfolio of Investments in Item 1. |
| b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable to this registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS
File the exhibits listed below as part of this Form.
| (a)(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/mf and there were no amendments during the period covered by this report. (To view the code, click on the Shareholder Resources drop down menu box, click on Fund Governance and then Code of Conduct.) | |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto. | |
| (a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant. | |
| (b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Funds, Inc.
By (Signature and Title)
| /s/ Kevin J. McCarthy | |
| Kevin J. McCarthy | ||
| Vice President and Secretary | ||
Date January 6, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
| /s/ Gifford R. Zimmerman | |
| Gifford R. Zimmerman | ||
| Chief Administrative Officer | ||
| (principal executive officer) | ||
Date January 6, 2012
| By (Signature and Title) | /s/ Stephen D. Foy | |
| Stephen D. Foy | ||
| Vice President and Controller | ||
| (principal financial officer) | ||
Date January 6, 2012