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: December
Date of reporting period: December 31, 2012
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
December 31, 2012
| | | | | | | | | | |
| | | 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 Asset Income Fund | | NRIAX | | — | | NRICX | | NRIRX | | NRIIX |
Nuveen Real Estate Securities Fund | | FREAX | | FREBX | | FRLCX | | FRSSX | | FARCX |
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| | | | | | |
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Table of Contents
Chairman’s
Letter to Shareholders
Dear Shareholders,
Despite the global economy’s ability to muddle through the many economic headwinds of 2012, investors continue to have good reasons to remain cautious. The European Central Bank’s decisions to extend intermediate term financing to major European banks and to support sovereign debt markets have begun to show signs of a stabilized euro area financial market. The larger member states of the European Union (EU) are working diligently to strengthen the framework for a tighter financial and banking union and meaningful progress has been made by agreeing to centralize large bank regulation under the European Central Bank. However, economic conditions in the southern tier members are not improving and the pressures on their political leadership remain intense. The jury is out on whether the respective populations will support the continuing austerity measures that are needed to meet the EU fiscal targets.
In the U.S., the Fed remains committed to low interest rates into 2015 through its third program of Quantitative Easing (QE3). Inflation remains low but a growing number of economists are expressing concern about the economic distortions resulting from negative real interest rates. The highly partisan atmosphere in Congress led to a disappointingly modest solution for dealing with the end-of-year tax and spending issues. Early indications for the new Congressional term have not given much encouragement that the atmosphere for dealing with the sequestration legislation and the debt ceiling issues, let alone a more encompassing “grand bargain,” will be any better than the last Congress. Over the longer term, there are some encouraging trends for the U.S. economy: house prices are beginning to recover, banks and corporations continue to strengthen their financial positions and incentives for capital investment in the U.S. by domestic and foreign corporations are increasing due to more competitive energy and labor costs.
During 2012 U.S. investors have benefited from strong returns in the domestic equity markets and solid returns in most fixed income markets. However, many of the macroeconomic risks of 2012 remain unresolved, including negotiating through the many U.S. fiscal issues, managing the risks of another year of abnormally low U.S. interest rates, sustaining the progress being made in the euro area and reducing the potential economic impact of geopolitical issues, particularly in the Middle East. In the face of these uncertainties, the experienced investment professionals at Nuveen Investments seek out investments that are enjoying positive economic conditions. At the same time they are always on the alert for risks in markets subject to excessive optimism or for opportunities in markets experiencing undue pessimism. Monitoring this process is a critical function for the Fund Board as it oversees your Nuveen Fund on your behalf.
As always, I encourage you to communicate with 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
February 22, 2013
Portfolio Managers’ Comments
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. For the Nuveen Global Infrastructure Fund, Jay Rosenberg and John Wenker have been the managers since its inception in 2007. Effective December 1, 2012, Nuveen Asset Management added Tryg Sarsland as a co-portfolio manager to the Fund. For the Nuveen Real Asset Income Fund, Jay and John, along with portfolio manager Jeff Schmitz, CFA, have managed the Fund since its inception in 2011. 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. In addition, co-portfolio manager Scott Sedlak joined the Nuveen Real Estate Securities Fund’s management team in 2011. On the following pages, the portfolio management teams for these Funds examine economic and market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended December 31, 2012.
What were the general market conditions and trends over the course of the
reporting period?
During this period, the U.S. economy’s progress toward recovery from recession
continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to
improve the overall economic environment by holding the benchmark fed funds rate at
the record low level of zero to 0.25% that it established in December 2008. The central
bank decided during its December 2012 meeting to keep the fed funds rate at “exceptionally low levels” until either the unemployment rate reaches 6.5% or expected inflation goes above 2.5%. The Fed also affirmed its decision, announced in September
2012, to purchase $40 billion of mortgage-backed securities each month in an effort to
stimulate the housing market. In addition to this new, open-ended stimulus program, the Fed plans to continue its program to extend the average maturity of its holdings of
U.S. Treasury securities through the end of December 2012. The goals of these actions,
which together will increase the Fed’s holdings of longer-term securities by approximately
$85 billion a month through the end of the year, are to put downward pressure on longer-term interest rates, make broader financial conditions more accommodative and support a stronger economic recovery as well as continued progress toward the Fed’s mandates of maximum employment and price stability.
In the fourth quarter 2012, the U.S. economy, as measured by the U.S. gross domestic
product (GDP), decreased at an estimated annualized rate of 0.1%, down from a 3.1% increase in the third quarter. This slight decline was due to lower inventory investment, federal spending and net exports. The Consumer Price Index (CPI) rose 1.7% year-over-year as of December 2012, after a 3.0% increase in 2011. The core CPI (which excludes
food and energy) increased 1.9% during the period, staying just within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. As of January 2013, the national unemployment rate was 7.9%, slightly higher than the 7.8% unemployment rate for December 2012 but below the 8.3% level recorded in January 2012. The housing market continued to show signs of improvement, with the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rising 5.5% for the twelve months ended November 2012 (most recent data available at the time this report was prepared). This was the largest year-over-year price gain since August 2006. The outlook for the U.S. economy remained clouded by uncertainty about global financial markets and the continued negotiations by Congress regarding potential spending cuts and tax policy reform.
The U.S. equity markets delivered impressive gains in 2012 despite significant market volatility and overarching economic uncertainty brought on by the European credit crisis, combined with the presidential election and its ultimate impact on the fiscal cliff. Congress averted the fiscal cliff with tax legislation, but spending cuts and entitlement reforms still need to be addressed in 2013. Asset flows continued into bonds from equities, and into passive equity strategies away from active managers. The move to fiscal austerity has reduced monetary stimulus globally with no meaningful increase in interest rates or inflationary expectations.
Nuveen Global Infrastructure Fund
How did the Fund perform during the twelve-month period ended December 31, 2012?
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 December 31, 2012. The Fund’s Class A Shares at net asset value (NAV) outperformed the S&P Global Infrastructure 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 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 the twelve-month period, our strategy for managing the Fund remained consistent as we focused on buying global infrastructure companies that own and operate long life assets that have visible cash flows, strong balance sheets, manageable amounts of leverage and inelastic demand characteristics. We believe these types of companies will have ongoing access to capital and the best chances for producing sustainable and growing cash flow. The Fund is structured using a number of core infrastructure companies that we believe should provide long-term outperformance versus the market, combined with more opportunistic holdings that we believe are undervalued by the market in the short term. We have exposure around the globe to a mixture of holdings that represent significant value, as well as positions in companies that may prove to be more stable in a slowly growing global economy.
Over the fiscal year period, the Fund outpaced its benchmarks as a result of strong stock selection and favorable weights in several sectors, particularly an underweight in electric utilities, technology infrastructure, water and gas utilities. The toll road sector was the only detractor of note during the period, although the waste sector and a small cash position were also slight drags on results. Additionally, the Fund’s returns benefited from the ongoing execution of one of our long-term strategies, which is to execute a great deal of caution in owning securities from regions where political, fiscal or monetary uncertainty is rampant. During the reporting period, this strategy was particularly fruitful in the electric utilities sector, as noted below.
The electric utilities sector was the strongest performing area in the Fund relative to the benchmark during the fiscal year. The Fund benefited both from a substantial underweight to electric utilities as well as favorable stock selection across the space. A great deal of the positive attribution resulted from our ongoing underweight in continental European electric utilities, based on economic sensitivity as well as heightened political and regulatory risk as Eurozone countries attempt to fix the region’s sovereign debt crisis. Electric utility stocks in countries such as Germany fell to five-year lows based on these very low power prices. As we’ve discussed since the inception of the Fund, we favor investments in stable, regulated companies with long-term contracts or concessions that are not as commodity price sensitive. We attempt to avoid exposure in companies that derive too much of their cash flows from spot market generation, or that could be significantly impacted by political and/or regulatory uncertainty. Elsewhere in the sector, results were aided by our increased exposure to U.S. regulated utilities. We took advantage of a sell-off in U.S. regulated utilities during the period and added holdings to the Fund, which benefited results as the stocks rebounded. Toward the end of the fiscal year, we continued to add to positions in the U.S. regulated segment, after several key issues that we’d been monitoring were resolved.
The Fund also continued to be rewarded for its long held positions in the technology infrastructure sector, an area not represented in the S&P Global Infrastructure Index. We own a handful of technology infrastructure holdings spread across the cell phone tower, data center and satellite industries. In particular, we saw positive results from our emphasis on cell phone tower providers, which we have invested in since the Fund’s inception. Many of these companies continued to benefit from stable, sound fundamentals and a number of favorable long-term trends in the sector, including the very strong demand from wireless customers for increasing amounts of data.
Meanwhile, the Fund’s outperformance in water infrastructure was the culmination of several favorable positions from Brazil and Hong Kong. In particular, the Fund experienced strong results from a water utility it owns from the Sao Paulo state in Brazil. The company benefited from a commitment by the state’s regulators to adopt a more formal regulatory framework similar to what exists for other Brazilian utilities. Meanwhile, several Hong Kong based water companies performed well over the fiscal year. The Chinese government’s most recent “5-year plan” continued to lay out the country’s vision for growth, but with more of a focus on environmental services given that pollution is rampant throughout the mainland. While several contracts had been awarded earlier in 2012 for development in these areas, the transition of government delayed the regulatory
approval and permit process. After the government transition was completed in the final quarter of the year, the approval process accelerated and benefited companies in the water sector.
The gas utilities sector also added favorably to twelve-month returns. In particular, the Fund was rewarded for our significant underweight position to a large French company in the benchmark. This particular underweight was part of our larger decision to de-emphasize European integrated utilities due to continued economic softness and political risks. Our wariness proved correct as the company sold off dramatically after announcing that financial results would be hindered by the weak European economy and tighter restrictions surrounding its ability to raise energy prices in France. The Fund also experienced strong performance from a gas utility in Hong Kong, which benefited from a stable business environment, a benign regulatory environment and its status as a monopoly provider in the region. Additionally, the Fund saw favorable results from some of its smaller-cap U.S. gas companies that have good regulatory environments.
The toll road sector was the Fund’s greatest area of underperformance during the fiscal year. The shortfall was primarily due to our broad based European underweight, particularly in Italy and Spain as stocks rebounded from significant lows of the prior year. The toll road sector ended up being a relatively strong performing area in the benchmark. In the waste sector, which is not represented in the benchmark, one of our solid waste collection and recycling companies from the United States traded off during the fiscal year. It had raised a significant amount of capital for a potential buyout, but was outbid for those assets. Although the market sold off the stock, we remained confident in this name and it continued to be one of the larger weights in the Fund. Finally, the Fund’s results were hindered by small position in cash during a period where the market experienced a strong advance.
During the fiscal year, approximately one-third of the Fund was positioned in the United States, which is slightly higher than our historical average of around 25% U.S. exposure. This was primarily due to the Fund’s underweight to Europe, but also the result of a short-term opportunity we took advantage of in the master limited partnership (MLP) and regulated utilities marketplaces. Prior to the U.S. presidential election, MLPs and regulated utilities had been trading well above historical valuations as they were considered somewhat of a safe haven during the global financial crisis. However, these segments sold off pretty significantly after the election as concerns increased regarding potential tax increases. We used the sell-off to bolster the Fund’s position in both of those areas, and they subsequently recovered.
Nuveen Real Asset Income Fund
How did the Fund perform during the twelve-month period ended December 31, 2012?
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 December 31, 2012. The Fund’s Class A Shares at net asset value (NAV) outperformed the Barclays U.S. Corporate High Yield Index, the custom blend benchmark 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 a high level of current income and the potential for capital appreciation by investing in a global portfolio of infrastructure and commercial real estate related securities (i.e. real assets) across the capital markets. These securities include a combination of infrastructure and real estate common stock, infrastructure and real estate preferred stock, and infrastructure and real estate related debt. Our goal is to combine these securities into a portfolio that provides investors with an attractive level of income and dampens levels of risk versus the broader equity market. We continued to select securities using an investment process that screens for companies and assets across the real assets market that provide higher dividend yields. From the group of securities providing the highest yields, we focus on owning those companies and securities with the highest total return potential in the Fund. Our process places a premium on finding securities whose revenues come from tangible assets with long-term concessions, contracts or leases and are therefore capable of producing steady, predictable and recurring cash flows. The Fund’s management team employs a bottom-up, fundamental approach to security selection and portfolio construction. We look for stable companies that demonstrate consistent and growing cash flow, strong balance sheets and histories of being good stewards of shareholder capital.
Over the twelve-month reporting period, the Fund continued to generate a higher level of yield than its custom blend benchmark, while experiencing positive attribution from all five of its major segments. The Fund’s top-performing area for the year was real estate investment trust (REIT) preferreds, followed by REIT common equity, infrastructure common equity, infrastructure preferreds and high yield. Performance also benefited from several strategic asset allocation changes we made during the year, as noted below.
Both categories of real estate investment were the top-performing segments of the Fund during the one-year reporting period. In the REIT preferred portion of the Fund, strong results continued to be driven by exposure to non-rated securities. As the period progressed, we increased the Fund’s weight in REIT preferreds via additional non-rated opportunities uncovered by our research team, which proved beneficial as these securities outperformed. The Fund ended the reporting period with an overweight in the REIT preferred sector. Outperformance was quite widespread across the REIT common equity portion of the Fund, particularly from some of the more stable and mature companies in higher-yielding areas such as health care REITs, net lease, hotel REITs, community centers and industrial. We avoided some of the more cyclical segments of the real estate market. In both the REIT common equity and preferred sectors, we avoided European exposure, concentrating our holdings primarily in the United States, Singapore and Australia.
Within the infrastructure common equity sector, the Fund benefited from a significant underweight in the electric utilities sector, paired with an overweight in electric transmission. A great deal of the segment’s positive attribution resulted from our ongoing underweight to continental European electric utilities, as stocks in countries such as Germany fell to five-year lows based on low power prices. As we’ve discussed since the inception of the Fund, we like to invest in stable, regulated companies with long-term contracts or concessions that are not as commodity price sensitive. Results in infrastructure common equity were also aided by our increased exposure to U.S. regulated utilities.
In the infrastructure preferred/hybrid space, results benefited from our research team’s careful selection of global hybrid bonds, which subsequently performed extremely well. At period end, the Fund’s infrastructure preferred portfolio was comprised almost entirely of these global hybrids.
The Fund’s high yield bond portfolio slightly outperformed the index as a number of our individual credits performed well. Fund holdings were spread across the United States, emerging markets and Europe and diversified across a number of real asset categories, with the greatest concentrations in the industrial, electric and gas utilities, and pipeline sectors. Throughout the one-year period, the high-yield segment continued to be supported by investors’ quest for yield, along with strong underlying company fundamentals, a gradually improving economy and low default rates. Performance was also aided by our focus on the higher-quality tier of the high yield market.
The Fund ended the fiscal year period with weights that were intentionally off-target due to our active asset allocation. Infrastructure common equity was at an even greater underweight versus six months ago, based on our continued lack of confidence in European shares. However, within the sector we were quite active traders as a result of a short-term opportunity in the higher-yielding master limited partnership (MLP) and regulated utilities marketplaces. Prior to the U.S. presidential election, MLPs and regulated utilities had been trading well above historical valuations as they were considered somewhat of a safe haven during the global financial crisis. However, these segments sold off significantly after the election over concerns regarding potential tax increases. We used the sell-off to bolster the Fund’s position in both of those areas, and they subsequently recovered. We typically only own MLPs if the majority of their cash flows come from guaranteed, fee-based arrangements without a lot of commodity price sensitivity.
After the high yield segment’s strong run in 2012, we decided there were better opportunities in the other asset classes. As yields continued to drop dramatically in the segment, we sold some of the Fund’s securities that dipped below the 5% yield threshold. This lowered the Fund’s high yield exposure by period end; however, we reallocated the proceeds across the other four segments.
As noted earlier, we also found a number of non-rated opportunities in the REIT preferred sector that were relatively attractive versus other options in the Fund, but the breadth of these opportunities diminished. Therefore, the Fund’s REIT preferred portfolio ended the period at a much higher weight, while also more concentrated than it was a year ago as we consolidated holdings in larger positions.
Geographically, the Fund ended the period with increased exposure to the U.S., mostly because of our ongoing underweight to the euro zone countries due to the continued political and regulatory risk. We had also reduced the Fund’s exposure to the United Kingdom, Singapore and Hong Kong as we found better opportunities in the U.S. The Fund continued to have significant exposure within Australia, primarily on the equity side. Australia still has higher interest rates and higher yields, while the market is performing very well. Our long-term target for geographic distribution remains at roughly 50% U.S. exposure and 50% non-U.S. exposure.
Nuveen Real Estate Securities Fund
How did the Fund perform during the twelve-month period ended December 31, 2012?
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 December 31, 2012. The Fund’s Class A Shares at net asset value (NAV) outperformed the MSCI U.S. REIT 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 above average income potential and long-term capital appreciation by investing in income producing common stocks of publicly traded companies engaged in the real estate industry. During the twelve-month reporting period, we continued to implement the Fund’s strategy of investing on a relative value basis with a focus on individual stocks rather than economic or market cycles. We also continued to invest the Fund in a fairly sector neutral manner, with a goal of providing a well-diversified portfolio of public real estate stocks to our shareholders. 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.
During the reporting period, the commercial real estate market outperformed the broader U.S. equity market. Real estate investment trust (REIT) fundamentals remained positive as they continued to have access to low-cost capital, generally solid balance sheets and growing dividends as they pass through much of the income growth they experience to shareholders. However, dividend payout ratios did remain low compared to historical measures.
In the REIT market’s continued strong advance, the Fund’s relative returns once again benefited from stock selection, particularly in the community center, office, apartment and infrastructure segments. In community centers, solid stock selection across the sector led to modest outperformance. The Fund particularly benefited from overweights to “non-grocery” type anchors and subsequent underweights to two grocery focused anchors. Our underweights were predicated on the belief that the valuation spread between grocery anchors and non-grocery anchors appeared to be too great. With little to no new construction of community centers and increased demand from national mid and large box tenants, we believed there would continue to be higher occupancy and positive leasing spreads for the non-grocery anchored assets. Therefore, we expected the spread between the lower valuation non-grocery anchors and the higher valuation grocery anchors to compress. Our thesis proved correct as our positioning in the community center sector was the largest driver of positive returns relative to the benchmark.
In the office sector, our Fund’s underweight to data centers contributed positively to returns as this type of real estate underperformed. Data center companies have been affected by additional supply coming on line combined with operators commenting on softness in demand. This led to concern that potential lower lease rates would impact
overall profitability. Our belief was that the market had not yet discounted these dynamics appropriately; therefore, the Fund’s underweight to these names relative to the index was beneficial. Also, the Fund benefited from its underweight throughout most of the period to New York City, given uncertainty surrounding employment in the financial services sector. In addition, the Fund benefited from a significant underweight to an externally advised company that experienced substantial weakness as its dividend exceeded cash flow. We tend not to own companies like this as core positions in the Fund’s portfolio.
Although the apartment sector’s returns lagged the broader REIT space, the Fund outperformed as a result of overweight positions in Sunbelt companies and underweight positions in companies with more highly leveraged balance sheets and less operational skill. In addition, the Fund benefited from its infrastructure exposure during the period, an area that is not represented in the benchmark. Within infrastructure, the Fund was rewarded for positions in cellular tower companies. These firms continued to benefit from the ongoing build-out of the nation’s wireless network, in order to keep pace with consumers’ ever-increasing demands for wireless data.
While the mall sector outperformed the overall benchmark, and our portfolio weight was generally in line, the Fund underperformed as a result of stock selection. Our Fund’s underweight position in one name was the biggest reason for the performance shortfall. During the fiscal year, one of the company’s significant shareholders published a letter he had sent to the management team requesting they sell the company to a competitor. The quoted price range for the sale was at a substantial premium to where the stock traded in the market, leading the company to rally significantly on the event. The Fund’s results were also hindered by its small position in cash during a period where the real estate market experienced a strong advance.
The Fund’s overall sector positioning was again little changed during the period. As is typical for the strategy from a management perspective, variations in the Fund were on the margin and were generated from the bottom up, affecting individual company holdings rather than making any sweeping sector changes.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Equity investments such as those held by the Funds, are subject to market risk, call risk, derivatives risk, other investment companies risk, common stock risk, and tax risks associated with MLPs and REITs. Concentration in specific sectors may involve greater risk and volatility than more diversified investments: real estate sector involves the risk of exposure to economic downturns and changes in real estate values, rents, property taxes, interest rates and tax laws; infrastructure related securities may involve greater exposure to adverse economic, regulatory, political, legal, and other changes affecting such securities. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity, and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. In addition, a Fund will bear its proportionate share of any fees and expenses paid by the ETFs in which it invests.
Debt or fixed income securities, such as those held by the Nuveen Real Asset Income Fund, are subject to market risk, credit risk, interest rate risk and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure and therefore are subject to greater credit risk. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
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Fund Performance and Expense Ratios
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.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waiver and/or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
Fund Performance and Expense Ratios (continued)
Nuveen Global Infrastructure Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of December 31, 2012
| | | | | | | | | | | | |
| |
| | | Average Annual | |
| | | |
| | | 1-Year | | | 5-Year | | | Since
Inception* | |
Class A Shares at NAV | | | 15.52% | | | | 2.09 | % | | | 2.59% | |
Class A Shares at maximum Offering Price | | | 8.93% | | | | 0.88 | % | | | 1.39% | |
S&P Global Infrastructure Index** | | | 11.89% | | | | -2.06 | % | | | -1.58% | |
Lipper Specialty/Miscellaneous Funds Classification Average** | | | 6.74% | | | | -0.12 | % | | | 0.28% | |
| | | |
Class C Shares | | | 14.58% | | | | N/A | | | | 13.65% | |
Class R3 Shares | | | 15.36% | | | | N/A | | | | 14.11% | |
Class I Shares | | | 15.78% | | | | 2.33 | % | | | 2.83% | |
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 only available for purchase by eligible 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 | | | 1.59% | | | | 1.23% | |
Class C Shares | | | 2.34% | | | | 1.98% | |
Class R3 Shares | | | 1.84% | | | | 1.48% | |
Class I Shares | | | 1.34% | | | | 0.98% | |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2013, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.25%, 2.00%, 1.50% and 1.00%, for Class A, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the 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 11/03/08. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Growth of an Assumed $10,000 Investment as of December 31, 2012 — Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
Fund Performance and Expense Ratios (continued)
Nuveen Real Asset Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of December 31, 2012
| | | | | | | | |
| | | Average Annual | |
| | |
| | | 1-Year | | | Since
Inception* | |
Class A Shares at NAV | | | 17.22% | | | | 15.67% | |
Class A Shares at maximum Offering Price | | | 10.49% | | | | 10.51% | |
Barclays U.S. Corporate High Yield Index** | | | 15.81% | | | | 15.14% | |
Real Asset Income Blend** | | | 12.76% | | | | 14.10% | |
Lipper Global Flexible Portfolio Funds Classification Average** | | | 10.24% | | | | 7.27% | |
| | |
Class C Shares | | | 16.36% | | | | 14.81% | |
Class I Shares | | | 17.50% | | | | 15.94% | |
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 | | | 1.71% | | | 1.18% |
Class C Shares | | | 2.46% | | | 1.93% |
Class I Shares | | | 1.46% | | | 0.93% |
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through April 30, 2014 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.95% of the average daily net assets of any class of Fund shares. The expense limitation expiring April 30, 2014, may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund.
| * | Since inception returns are from 9/13/11. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Growth of an Assumed $10,000 Investment as of December 31, 2012 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
Fund Performance and Expense Ratios (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 December 31, 2012
| | | | | | | | | | | | |
| |
| | | Average Annual | |
| | | |
| | | 1-Year | | | 5-Year | | | 10-Year | |
Class A Shares at NAV | | | 18.07% | | | | 7.00% | | | | 13.15% | |
Class A Shares at maximum Offering Price | | | 11.31% | | | | 5.74% | | | | 12.48% | |
MSCI U.S. REIT Index* | | | 17.77% | | | | 5.58% | | | | 11.58% | |
Lipper Real Estate Funds Classification Average* | | | 17.73% | | | | 4.95% | | | | 10.78% | |
| | | |
Class B Shares w/o CDSC | | | 17.18% | | | | 6.19% | | | | 12.31% | |
Class B Shares w/CDSC | | | 12.18% | | | | 6.03% | | | | 12.31% | |
Class C Shares | | | 17.19% | | | | 6.21% | | | | 12.32% | |
Class R3 Shares | | | 17.80% | | | | 6.74% | | | | 12.92% | |
Class I Shares | | | 18.34% | | | | 7.26% | | | | 13.44% | |
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 only available for purchase by eligible 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. Indexes and Lipper averages are not available for direct investment. |
Growth of an Assumed $10,000 Investment as of December 31, 2012 — Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
Holding Summaries as of December 31, 2012
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
| | | | |
| Common Stocks | | | 91.9% | |
| Real Estate Investment Trust Common Stocks | | | 5.6% | |
| Preferred Stocks | | | 0.1% | |
| Investment Companies | | | 0.4% | |
| Short-Term Investments | | | 0.5% | |
| Other2 | | | 1.5% | |
| | | | |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings1 | |
| American Tower REIT Inc. | | | 5.1% | |
| Williams Companies, Inc. | | | 4.8% | |
| CLP Holdings Limited | | | 3.9% | |
| Enbridge Inc. | | | 3.6% | |
| National Grid PLC, Sponsored ADR | | | 3.6% | |
Nuveen Real Asset Income Fund
Portfolio Allocation1
| | | | |
| Common Stocks | | | 19.8% | |
| Real Estate Investment Trust Common Stocks | | | 18.0% | |
| Convertible Preferred Securities | | | 2.2% | |
| $25 Par (or similar) Preferred Securities | | | 33.4% | |
| Corporate Bonds | | | 23.0% | |
| Investment Companies | | | 1.3% | |
| Short-Term Investments | | | 1.8% | |
| Other2 | | | 0.5% | |
Nuveen Real Estate Securities Fund
Portfolio Allocation1
| | | | |
| Common Stocks | | | 0.4% | |
| Real Estate Investment Trust Common Stocks | | | 98.2% | |
| $25 Par (or similar) Preferred Securities | | | 0.2% | |
| Investment Companies | | | 0.1% | |
| Short-Term Investments | | | 0.7% | |
| Other3 | | | 0.4% | |
| | | | |
| Portfolio Composition1 | |
| Transportation | | | 20.8% | |
| Electric Utilities | | | 20.3% | |
| Oil, Gas & Consumable Fuels | | | 19.0% | |
| Multi-Utilities | | | 11.7% | |
| Gas Utilities | | | 8.2% | |
| Water Utilities | | | 5.8% | |
| Specialized | | | 5.6% | |
| Short-Term Investments | | | 0.5% | |
| Other4 | | | 8.1% | |
| | | | |
| Portfolio Composition1 | |
| Retail | | | 13.4% | |
| Electric Utilities | | | 11.4% | |
| Oil, Gas & Consumable Fuels | | | 9.5% | |
| Specialized | | | 8.5% | |
| Real Estate Investment Trusts | | | 6.9% | |
| Diversified | | | 5.9% | |
| Multi-Utilities | | | 5.0% | |
| Diversified Financial Services | | | 4.3% | |
| Industrials | | | 4.2% | |
| Office | | | 3.9% | |
| Health Care Providers & Services | | | 3.8% | |
| Transportation | | | 3.2% | |
| Short-Term Investments | | | 1.8% | |
| Other4 | | | 18.2% | |
| | | | |
| Portfolio Composition1 | | | |
| Retail | | | 29.6% | |
| Specialized | | | 24.4% | |
| Residential | | | 17.6% | |
| Office | | | 13.9% | |
| Diversified | | | 7.7% | |
| Industrial | | | 5.0% | |
| Short-Term Investments | | | 0.7% | |
| Other5 | | | 1.1% | |
| | | | |
| Country Allocation1 | |
| United States | | | 40.7% | |
| Hong Kong | | | 10.4% | |
| United Kingdom | | | 7.2% | |
| Australia | | | 7.0% | |
| Canada | | | 5.6% | |
| Singapore | | | 3.6% | |
| Germany | | | 3.1% | |
| Japan | | | 3.0% | |
| Short-Term Investments6 | | | 0.5% | |
| Other7 | | | 18.9% | |
| | | | |
Top Five Common Stock & Real Estate
Investment Trust Common Stock
Holdings1 | |
| National Retail Properties, Inc. | | | 3.1% | |
| Spark Infrastructure Group | | | 2.5% | |
| Liberty Property Trust | | | 2.2% | |
| National Grid PLC, Sponsored ADR | | | 2.2% | |
| DUET Group | | | 1.9% | |
| | | | |
| Country Allocation1 | |
| United States | | | 71.4% | |
| Australia | | | 8.7% | |
| Philippines | | | 3.0% | |
| United Kingdom | | | 2.7% | |
| Short-Term Investments6 | | | 1.8% | |
| Other7 | | | 12.4% | |
| | | | |
Top Five Common Stock & Real Estate
Investment Trust Common Stock
Holdings1 | |
| Simon Property Group, Inc. | | | 11.8% | |
| Boston Properties, Inc. | | | 5.6% | |
| Public Storage, Inc. | | | 5.6% | |
| Ventas Inc. | | | 4.0% | |
| Health Care Property Investors Inc. | | | 3.9% | |
| 1 | As a percentage of net assets. Holdings are subject to change. |
| 2 | Other assets less liabilities. |
| 3 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
| 4 | Includes other assets less liabilities and all industries less than 5.6% of net assets for Nuveen Global Infrastructure Fund and all industries less than 3.2% of net assets for Nuveen Real Asset Income Fund. |
| 5 | Includes other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments and all industries less than 5.0% of net assets. |
| 6 | Denominated in U.S. Dollars. |
| 7 | Includes other assets less liabilities and all countries less than 3.0% of net assets for Nuveen Global Infrastructure Fund and all countries less than 2.7% of net assets for Nuveen Real Asset Income Fund. |
Expense Examples
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through 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
(5% annualized return before expenses) | |
| | | A Shares | | | C Shares | | | R3 Shares | | | I Shares | | | | | A Shares | | | C Shares | | | R3 Shares | | | I Shares | |
| Beginning Account Value (7/01/12) | | $ | 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 (12/31/12) | | $ | 1,097.70 | | | $ | 1,093.30 | | | $ | 1,096.80 | | | $ | 1,099.20 | | | | | $ | 1,018.95 | | | $ | 1,015.18 | | | $ | 1,017.65 | | | $ | 1,020.16 | |
| Expenses Incurred During Period | | $ | 6.49 | | | $ | 10.42 | | | $ | 7.85 | | | $ | 5.22 | | | | | $ | 6.24 | | | $ | 10.03 | | | $ | 7.56 | | | $ | 5.03 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.23%, 1.98%, 1.49% and 0.99% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Real Asset Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Performance | | | | | Hypothetical Performance
(5% annualized return before expenses) | |
| | | A Shares | | | C Shares | | | I Shares | | | | | A Shares | | | C Shares | | | I Shares | |
| Beginning Account Value (7/01/12) | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
| Ending Account Value (12/31/12) | | $ | 1,092.50 | | | $ | 1,087.90 | | | $ | 1,093.30 | | | | | $ | 1,019.25 | | | $ | 1,015.48 | | | $ | 1,020.51 | |
| Expenses Incurred During Period | | $ | 6.15 | | | $ | 10.08 | | | $ | 4.84 | | | | | $ | 5.94 | | | $ | 9.73 | | | $ | 4.67 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.17%, 1.92% and 0.92% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Real Estate Securities Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Performance | | | | | Hypothetical 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 (7/01/12) | | $ | 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 (12/31/12) | | $ | 1,027.20 | | | $ | 1,023.30 | | | $ | 1,023.70 | | | $ | 1,026.20 | | | $ | 1,028.30 | | | | | $ | 1,018.80 | | | $ | 1,015.03 | | | $ | 1,015.03 | | | $ | 1,017.55 | | | $ | 1,020.06 | |
| Expenses Incurred During Period | | $ | 6.42 | | | $ | 10.22 | | | $ | 10.22 | | | $ | 7.69 | | | $ | 5.15 | | | | | $ | 6.39 | | | $ | 10.18 | | | $ | 10.18 | | | $ | 7.66 | | | $ | 5.13 | |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.26%, 2.01%, 2.01%, 1.51% and 1.01% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Report of
Independent Registered
Public Accounting Firm
To the Board of Directors and Shareholders of
Nuveen Global Infrastructure Fund
Nuveen Real Asset Income Fund
Nuveen Real Estate Securities Fund
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Global Infrastructure Fund, Nuveen Real Asset Income Fund, and Nuveen Real Estate Securities Fund (hereinafter referred to as the “Funds”) at December 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for the year ended December 31, 2012 and for the two months ended December 31, 2011 for Nuveen Global Infrastructure Fund and Nuveen Real Estate Securities Fund and for the period September 13, 2011 (commencement of operations) through December 31, 2011 for Nuveen Real Asset Income Fund and the financial highlights for the year ended December 31, 2012 and for the two months ended December 31, 2011 for Nuveen Global Infrastructure Fund and Nuveen Real Estate Securities Fund and for the period September 13, 2011 (commencement of operations) through December 31, 2011 for Nuveen Real Asset Income Fund, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements as of and for the year ended October 31, 2011 and the financial statement highlights for each of the four years in the period ended October 31, 2011 of the Nuveen Global Infrastructure Fund and Nuveen Real Estate Securities Fund were audited by other auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements, except for the reclassification of certain financial statement line items in the statement of operations, the statement of changes in net assets, and financial highlights for the year ended October 31, 2011 for the Nuveen Real Estate Securities Fund as to which the date is February 29, 2012.
PricewaterhouseCoopers LLP
Chicago, Illinois
February 28, 2013
Portfolio of Investments
Nuveen Global Infrastructure Fund
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | COMMON STOCKS – 91.9% | | | | | | | | | | |
| | | | | |
| | | | Air Freight & Logistics – 0.9% | | | | | | | | | | |
| | | | | |
| | 3,124,517 | | | Singapore Post Limited | | | | | | | | $ | 2,944,354 | |
| | | | Commercial Services & Supplies – 2.3% | | | | | | | | | | |
| | | | | |
| | 8,430,405 | | | China Everbright International Limited | | | | | | | | | 4,324,861 | |
| | | | | |
| | 309,699 | | | Serco Group PLC | | | | | | | | | 2,712,898 | |
| | | | | |
| | 29,600 | | | Standard Parking Corporation | | | | | | | | | 650,904 | |
| | | | Total Commercial Services & Supplies | | | | | | | | | 7,688,663 | |
| | | | Electric Utilities – 20.3% | | | | | | | | | | |
| | | | | |
| | 19,315 | | | Brookfield Infrastructure Partners LP | | | | | | | | | 680,854 | |
| | | | | |
| | 18,708 | | | Cez As | | | | | | | | | 669,257 | |
| | | | | |
| | 944,209 | | | Cheung Kong Infrastructure Holdings Ltd | | | | | | | | | 5,832,380 | |
| | | | | |
| | 1,528,227 | | | CLP Holdings Limited | | | | | | | | | 12,839,912 | |
| | | | | |
| | 12,837 | | | Duke Energy Corporation | | | | | | | | | 819,001 | |
| | | | | |
| | 950,203 | | | E CL SA | | | | | | | | | 2,231,067 | |
| | | | | |
| | 32,494 | | | Edison International | | | | | | | | | 1,468,404 | |
| | | | | |
| | 24,745 | | | EDP Energias do Brasil SA | | | | | | | | | 150,948 | |
| | | | | |
| | 7,694 | | | Elia System Operator SA NV | | | | | | | | | 347,327 | |
| | | | | |
| | 53,527 | | | Emera Inc | | | | | | | | | 1,869,436 | |
| | | | | |
| | 9,526 | | | Fortis Inc | | | | | | | | | 327,717 | |
| | | | | |
| | 80,564 | | | Hafslund ASA, Class B | | | | | | | | | 656,660 | |
| | | | | |
| | 34,985 | | | ITC Holdings Corporation | | | | | | | | | 2,690,696 | |
| | | | | |
| | 32,720 | | | NextEra Energy Inc. | | | | | | | | | 2,263,897 | |
| | | | | |
| | 42,211 | | | Northeast Utilities | | | | | | | | | 1,649,606 | |
| | | | | |
| | 16,812 | | | OGE Energy Corp. | | | | | | | | | 946,684 | |
| | | | | |
| | 19,365 | | | Pepco Holdings, Inc. | | | | | | | | | 379,748 | |
| | | | | |
| | 38,862 | | | Pinnacle West Capital Corporation | | | | | | | | | 1,981,185 | |
| | | | | |
| | 300,563 | | | Power Grid Corp of India Ltd | | | | | | | | | 634,071 | |
| | | | | |
| | 43,406 | | | Scottish & Southern Energy | | | | | | | | | 1,009,807 | |
| | | | | |
| | 148,838 | | | Southern Company | | | | | | | | | 6,371,755 | |
| | | | | |
| | 3,241,076 | | | Spark Infrastructure Group | | | | | | | | | 5,666,321 | |
| | | | | |
| | 316,442 | | | Transmissora Alianca de Energia Eletrica SA, WI/DD | | | | | | | | | 3,369,199 | |
| | | | | |
| | 153,746 | | | Unitil Corp. | | | | | | | | | 3,985,096 | |
| | | | | |
| | 170,502 | | | Westar Energy Inc. | | | | | | | | | 4,879,767 | |
| | | | | |
| | 122,945 | | | Xcel Energy, Inc. | | | | | | | | | 3,283,861 | |
| | | | Total Electric Utilities | | | | | | | | | 67,004,656 | |
| | | | Gas Utilities – 7.8% | | | | | | | | | | |
| | | | | |
| | 1,077 | | | Atmos Energy Corporation | | | | | | | | | 37,824 | |
| | | | | |
| | 3,982 | | | Chesapeake Utilities Corporation | | | | | | | | | 180,783 | |
| | | | | |
| | 1,070,001 | | | China Resources Gas Group Limited | | | | | | | | | 2,218,570 | |
| | | | | |
| | 393,848 | | | ENN Energy Holdings Limited | | | | | | | | | 1,725,798 | |
| | | | | |
| | 31,606 | | | GAIL India Ltd, GDR | | | | | | | | | 1,222,482 | |
| | | | | |
| | 848,670 | | | Hong Kong and China Gas Company Limited | | | | | | | | | 2,331,730 | |
| | | | | |
| | 9,069 | | | Northwest Natural Gas Company | | | | | | | | | 400,850 | |
| | | | | |
| | 179,036 | | | Osaka Gas Company Limited | | | | | | | | | 650,317 | |
| | | | | |
| | 242,698 | | | Petronas Gas Berhad | | | | | | | | | 1,549,204 | |
Portfolio of Investments
Nuveen Global Infrastructure Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | Gas Utilities (continued) | | | | | | | | | | |
| | | | | |
| | 16,198 | | | Piedmont Natural Gas Company | | | | | | | | $ | 507,159 | |
| | | | | |
| | 206,366 | | | Questar Corporation | | | | | | | | | 4,077,792 | |
| | | | | |
| | 61,039 | | | Southwest Gas Corporation | | | | | | | | | 2,588,664 | |
| | | | | |
| | 1,520,470 | | | Tokyo Gas Company Limited | | | | | | | | | 6,947,113 | |
| | | | | |
| | 30,169 | | | WGL Holdings Inc. | | | | | | | | | 1,182,323 | |
| | | | Total Gas Utilities | | | | | | | | | 25,620,609 | |
| | | | Independent Power Producers & Energy Traders – 0.3% | | | | | | | | | | |
| | | | | |
| | 12,847 | | | Brookfield Renewable Energy Partners LP | | | | | | | | | 379,456 | |
| | | | | |
| | 12,065 | | | Endesa SA Chile | | | | | | | | | 588,893 | |
| | | | Total Independent Power Producers & Energy Traders | | | | | | | | | 968,349 | |
| | | | Industrial Conglomerates – 0.8% | | | | | | | | | | |
| | | | | |
| | 135,176 | | | Beijing Enterprises Holdings | | | | | | | | | 886,657 | |
| | | | | |
| | 9,937 | | | NWS Holdings Limited | | | | | | | | | 16,795 | |
| | | | | |
| | 391,957 | | | SembCorp Industries Limited | | | | | | | | | 1,709,059 | |
| | | | Total Industrial Conglomerates | | | | | | | | | 2,612,511 | |
| | | | Media – 0.4% | | | | | | | | | | |
| | | | | |
| | 40,775 | | | SES SA | | | | | | | | | 1,174,357 | |
| | | | Multi-Utilities – 11.7% | | | | | | | | | | |
| | | | | |
| | 1,423 | | | Alliant Energy Corporation | | | | | | | | | 62,484 | |
| | | | | |
| | 356,113 | | | CenterPoint Energy, Inc. | | | | | | | | | 6,855,175 | |
| | | | | |
| | 499,418 | | | Centrica PLC | | | | | | | | | 2,725,685 | |
| | | | | |
| | 63,122 | | | CMS Energy Corporation | | | | | | | | | 1,538,914 | |
| | | | | |
| | 9,692 | | | Dominion Resources, Inc. | | | | | | | | | 502,046 | |
| | | | | |
| | 686,881 | | | DUET Group | | | | | | | | | 1,490,113 | |
| | | | | |
| | 210,192 | | | E ON SE | | | | | | | | | 3,942,389 | |
| | | | | |
| | 366,603 | | | Hera SpA | | | | | | | | | 595,103 | |
| | | | | |
| | 205,658 | | | National Grid PLC, Sponsored ADR | | | | | | | | | 11,812,996 | |
| | | | | |
| | 158,733 | | | NiSource Inc. | | | | | | | | | 3,950,864 | |
| | | | | |
| | 24,885 | | | PG&E Corporation | | | | | | | | | 999,879 | |
| | | | | |
| | 31,087 | | | Vector Limited | | | | | | | | | 70,274 | |
| | | | | |
| | 107,208 | | | Wisconsin Energy Corporation | | | | | | | | | 3,950,615 | |
| | | | Total Multi-Utilities | | | | | | | | | 38,496,537 | |
| | | | Oil, Gas & Consumable Fuels – 19.0% | | | | | | | | | | |
| | | | | |
| | 8,175 | | | AltaGas Limited | | | | | | | | | 275,897 | |
| | | | | |
| | 3,125 | | | Boardwalk Pipeline Partners, LP | | | | | | | | | 77,813 | |
| | | | | |
| | 275,256 | | | Enbridge Inc. | | | | | | | | | 11,924,090 | |
| | | | | |
| | 213,456 | | | Enterprise Products Partnership LP | | | | | | | | | 10,689,876 | |
| | | | | |
| | 15,899 | | | Gibson Energy Incorporated | | | | | | | | | 384,408 | |
| | | | | |
| | 933 | | | Kinder Morgan Energy Partners LP | | | | | | | | | 74,444 | |
| | | | | |
| | 223,942 | | | Kinder Morgan, Inc. | | | | | | | | | 7,911,871 | |
| | | | | |
| | 4,691 | | | Oiltanking Partners LP | | | | | | | | | 177,601 | |
| | | | | |
| | 1,730,979 | | | Sinopec Kantons Holdings Limited | | | | | | | | | 1,146,512 | |
| | | | | |
| | 313,999 | | | Spectra Energy Corporation | | | | | | | | | 8,597,293 | |
| | | | | |
| | 58,022 | | | TransCanada Corporation | | | | | | | | | 2,745,601 | |
| | | | | |
| | 31,311 | | | Veresen Inc. | | | | | | | | | 372,383 | |
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | Oil, Gas & Consumable Fuels (continued) | | | | | | | | | | |
| | | | | |
| | 54,297 | | | Western Gas Partners, LP | | | | | | | | $ | 2,586,166 | |
| | | | | |
| | 484,796 | | | Williams Companies, Inc. | | | | | | | | | 15,872,214 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | 62,836,169 | |
| | | | Road & Rail – 0.8% | | | | | | | | | | |
| | | | | |
| | 249,081 | | | ComfortDelGro Corporation | | | | | | | | | 366,430 | |
| | | | | |
| | 169,946 | | | MTR Corporation | | | | | | | | | 673,417 | |
| | | | | |
| | 1,097,612 | | | SMRT Corporation Limited | | | | | | | | | 1,517,780 | |
| | | | Total Road & Rail | | | | | | | | | 2,557,627 | |
| | | | Transportation – 20.8% | | | | | | | | | | |
| | | | | |
| | 160,213 | | | Abertis Infraestructuras SA | | | | | | | | | 2,646,155 | |
| | | | | |
| | 45,594 | | | Aeroports de Paris, WI/DD | | | | | | | | | 3,530,035 | |
| | | | | |
| | 218,344 | | | Atlantia SpA | | | | | | | | | 3,964,841 | |
| | | | | |
| | 1,576,521 | | | Auckland International Airport Limited | | | | | | | | | 3,489,550 | |
| | | | | |
| | 1,443,351 | | | China Merchants Holdings International Company Limited | | | | | | | | | 4,713,611 | |
| | | | | |
| | 917,675 | | | Cosco Pacific Limited | | | | | | | | | 1,330,595 | |
| | | | | |
| | 4,283 | | | Flughafen Zuerich AG | | | | | | | | | 1,983,186 | |
| | | | | |
| | 94,604 | | | Fraport AG | | | | | | | | | 5,518,865 | |
| | | | | |
| | 339,887 | | | Groupe Eurotunnel SA | | | | | | | | | 2,641,185 | |
| | | | | |
| | 20,975 | | | Hamburger Hafen und Logistik AG | | | | | | | | | 495,656 | |
| | | | | |
| | 2,767,776 | | | International Container Terminal Services Inc | | | | | | | | | 5,000,235 | |
| | | | | |
| | 113,844 | | | Japan Airport Terminal Company | | | | | | | | | 1,175,259 | |
| | | | | |
| | 937,622 | | | Jiangsu Expressway Company Limited | | | | | | | | | 976,216 | |
| | | | | |
| | 127,970 | | | Kamigumi Company Limited | | | | | | | | | 1,021,051 | |
| | | | | |
| | 126,319 | | | Koninklijke Vopak NV | | | | | | | | | 8,929,238 | |
| | | | | |
| | 257,459 | | | Macquarie Atlas Roads Group | | | | | | | | | 448,534 | |
| | | | | |
| | 263,162 | | | Port of Tauranga Limited, WI/DD | | | | | | | | | 2,869,786 | |
| | | | | |
| | 8,608 | | | Santos Brasil Participacoes SA | | | | | | | | | 122,761 | |
| | | | | |
| | 419,760 | | | SATS Limited | | | | | | | | | 1,002,384 | |
| | | | | |
| | 1,541,955 | | | Sydney Airport | | | | | | | | | 5,431,634 | |
| | | | | |
| | 1,526,538 | | | Transuburban Group | | | | | | | | | 9,703,629 | |
| | | | | |
| | 108,954 | | | Wilson Sons Ltd, BDR | | | | | | | | | 1,702,290 | |
| | | | Total Transportation | | | | | | | | | 68,696,696 | |
| | | | Water Utilities – 5.8% | | | | | | | | | | |
| | | | | |
| | 931,849 | | | Aguas Andinas SA-A | | | | | | | | | 661,258 | |
| | | | | |
| | 119,984 | | | American Water Works Company | | | | | | | | | 4,455,006 | |
| | | | | |
| | 345 | | | California Water Service Group | | | | | | | | | 6,331 | |
| | | | | |
| | 23,310 | | | Companhia de Saneamento Basico do Estado de Sao Paulo, ADR | | | | | | | | | 1,948,017 | |
| | | | | |
| | 78,084 | | | Companhia de Saneamento de Minas Gervais Copasa MG | | | | | | | | | 1,668,462 | |
| | | | | |
| | 79,235 | | | Connecticut Water Service, Inc. | | | | | | | | | 2,359,618 | |
| | | | | |
| | 1,049,747 | | | Guangdong Investment Limited | | | | | | | | | 831,428 | |
| | | | | |
| | 1,019,817 | | | Hyflux Limited | | | | | | | | | 1,079,258 | |
| | | | | |
| | 986,770 | | | Manila Water Company | | | | | | | | | 770,697 | |
| | | | | |
| | 15,292 | | | Middlesex Water Company | | | | | | | | | 299,112 | |
| | | | | |
| | 353,127 | | | Pennon Group PLC | | | | | | | | | 3,604,491 | |
| | | | | |
| | 57,628 | | | Severn Trent PLC | | | | | | | | | 1,482,884 | |
Portfolio of Investments
Nuveen Global Infrastructure Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | Water Utilities (continued) | | | | | | | | | | |
| | | | | |
| | 1,949 | | | SJW Corporation | | | | | | | | $ | 51,843 | |
| | | | Total Water Utilities | | | | | | | | | 19,218,405 | |
| | | | Wireless Telecommunication Services – 1.0% | | | | | | | | | | |
| | | | | |
| | 31,906 | | | Crown Castle International Corporation, (2) | | | | | | | | | 2,302,337 | |
| | | | | |
| | 15,393 | | | SBA Communications Corporation, (2) | | | | | | | | | 1,093,211 | |
| | | | Total Wireless Telecommunication Services | | | | | | | | | 3,395,548 | |
| | | | Total Common Stocks (cost $278,417,669) | | | | | | | | | 303,214,481 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 5.6% | | | | | | | | | | |
| | | | | |
| | | | Specialized – 5.6% | | | | | | | | | | |
| | | | | |
| | 216,962 | | | American Tower REIT Inc. | | | | | | | | $ | 16,764,654 | |
| | | | | |
| | 1,010,637 | | | Parkway Life Real Estate | | | | | | | | | 1,785,565 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $14,308,224) | | | | | | | | | 18,550,219 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | PREFERRED STOCKS – 0.1% | | | | | | | | | | |
| | | | | |
| | | | Independent Power Producers & Energy Traders – 0.1% | | | | | | | | | | |
| | | | | |
| | 31,989 | | | COPEL | | | | | | | | $ | 491,031 | |
| | | | Total Preferred Stocks (cost $649,496) | | | | | | | | | 491,031 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | INVESTMENT COMPANIES – 0.4% | | | | | | | | | | |
| | | | | |
| | | | Gas Utilities – 0.4% | | | | | | | | | | |
| | | | | |
| | 3,378,298 | | | Cityspring Infrastructure Trust | | | | | | | | $ | 1,219,755 | |
| | | | Total Investment Companies (cost $1,196,576) | | | | | | | | | 1,219,755 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | SHORT-TERM INVESTMENTS – 0.5% | | | | | | | | | | |
| | | | | |
| | | | Money Market Funds – 0.5% | | | | | | | | | | |
| | | | | |
| | 1,721,023 | | | State Street Institutional Liquid Reserve Fund, 0.170%, (3) | | | | | | | | $ | 1,721,023 | |
| | | | Total Short-Term Investments (cost $1,721,023) | | | | | | | | | 1,721,023 | |
| | | | Total Investments (cost $296,292,988) – 98.5% | | | | | | | | | 325,196,509 | |
| | | | Other Assets Less Liabilities – 1.5% | | | | | | | | | 4,908,110 | |
| | | | Net Assets – 100% | | | | | | | | $ | 330,104,619 | |
| | | | For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| | (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| | (2) | | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| | (3) | | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
| | ADR | | American Depositary Receipt. |
| | BDR | | Brazilian Depositary Receipt. |
| | GDR | | Global Depositary Receipt. |
| | REIT | | Real Estate Investment Trust. |
| | WI/DD | | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
Portfolio of Investments
Nuveen Real Asset Income Fund
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | COMMON STOCKS – 19.8% | | | | | | | | | | |
| | | | | |
| | | | Air Freight & Logistics – 0.4% | | | | | | | | | | |
| | | | | |
| | 207,332 | | | Singapore Post Limited | | | | | | | | $ | 195,377 | |
| | | | Electric Utilities – 7.0% | | | | | | | | | | |
| | | | | |
| | 1,742 | | | Duke Energy Corporation | | | | | | | | | 111,140 | |
| | | | | |
| | 1,270 | | | EDP Energias do Brasil SA | | | | | | | | | 7,747 | |
| | | | | |
| | 27 | | | Hafslund ASA, Class B | | | | | | | | | 220 | |
| | | | | |
| | 14,209 | | | Pepco Holdings, Inc. | | | | | | | | | 278,638 | |
| | | | | |
| | 8,368 | | | Scottish & Southern Energy | | | | | | | | | 194,675 | |
| | | | | |
| | 10,169 | | | Southern Company | | | | | | | | | 435,335 | |
| | | | | |
| | 593,637 | | | Spark Infrastructure Group | | | | | | | | | 1,037,846 | |
| | | | | |
| | 31,824 | | | Transmissora Alianca de Energia Eletrica SA, WI/DD | | | | | | | | | 338,834 | |
| | | | | |
| | 8,931 | | | Unitil Corp. | | | | | | | | | 231,492 | |
| | | | | |
| | 10,687 | | | Westar Energy Inc. | | | | | | | | | 305,862 | |
| | | | Total Electric Utilities | | | | | | | | | 2,941,789 | |
| | | | Multi-Utilities – 5.0% | | | | | | | | | | |
| | | | | |
| | 371,900 | | | DUET Group | | | | | | | | | 806,796 | |
| | | | | |
| | 4,894 | | | E ON SE | | | | | | | | | 91,792 | |
| | | | | |
| | 13,437 | | | Hera SpA | | | | | | | | | 21,812 | |
| | | | | |
| | 16,009 | | | National Grid PLC, Sponsored ADR | | | | | | | | | 919,557 | |
| | | | | |
| | 120,767 | | | Vector Limited | | | | | | | | | 273,000 | |
| | | | Total Multi-Utilities | | | | | | | | | 2,112,957 | |
| | | | Oil, Gas & Consumable Fuels – 5.2% | | | | | | | | | | |
| | | | | |
| | 24,173 | | | Boardwalk Pipeline Partners LP | | | | | | | | | 601,908 | |
| | | | | |
| | 11,922 | | | Enbridge Energy Partners LP | | | | | | | | | 332,624 | |
| | | | | |
| | 15,951 | | | Enterprise Products Partnership LP | | | | | | | | | 798,826 | |
| | | | | |
| | 245 | | | Kinder Morgan Energy Partners LP | | | | | | | | | 19,549 | |
| | | | | |
| | 27,791 | | | Veresen Inc. | | | | | | | | | 330,519 | |
| | | | | |
| | 2,586 | | | Western Gas Partners, LP | | | | | | | | | 123,171 | |
| | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | 2,206,597 | |
| | | | Real Estate Management & Development – 0.2% | | | | | | | | | | |
| | 121,560 | | | Ascendas India Trust | | | | | | | | | 74,635 | |
| | | | Transportation – 2.0% | | | | | | | | | | |
| | | | | |
| | 100 | | | Kobenhavns Lufthavne, WI/DD | | | | | | | | | 35,185 | |
| | | | | |
| | 55,042 | | | SATS Limited | | | | | | | | | 131,440 | |
| | | | | |
| | 107,114 | | | Sydney Airport | | | | | | | | | 377,316 | |
| | | | | |
| | 45,231 | | | Transuburban Group | | | | | | | | | 287,516 | |
| | | | Total Transportation | | | | | | | | | 831,457 | |
| | | | Total Common Stocks (cost $8,014,102) | | | | | | | | | 8,362,812 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 18.0% | | | | | | | | | | |
| | | | | |
| | | | Diversified – 5.3% | | | | | | | | | | |
| | | | | |
| | 50,365 | | | Duke Realty Corporation | | | | | | | | $ | 698,563 | |
| | | | | |
| | 26,149 | | | Liberty Property Trust | | | | | | | | | 935,350 | |
| | | | | |
| | 24,838 | | | Select Income REIT | | | | | | | | | 615,237 | |
| | | | Total Diversified | | | | | | | | | 2,249,150 | |
Portfolio of Investments
Nuveen Real Asset Income Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | Value | |
| | | | | | | | | | | | | | | | | | |
| | | | Industrials – 0.8% | | | | | | | | | | | | | | |
| | | | | |
| | 190 | | | GLP J-REIT | | | | | | | | | | | | $ | 145,184 | |
| | | | | |
| | 186,463 | | | Mapletree Logistics Trust | | | | | | | | | | | | | 175,488 | |
| | | | | |
| | 400 | | | Monmouth Real Estate Investment Corp | | | | | | | | | | | | | 4,144 | |
| | | | Total Industrials | | | | | | | | | | | | | 324,816 | |
| | | | Mortgage – 1.8% | | | | | | | | | | | | | | |
| | | | | |
| | 10,301 | | | Colony Financial Inc. | | | | | | | | | | | | | 200,870 | |
| | | | | |
| | 24,863 | | | Starwood Property Trust Inc. | | | | | | | | | | | | | 570,855 | |
| | | | Total Mortgages | | | | | | | | | | | | | 771,725 | |
| | | | Office – 0.6% | | | | | | | | | | | | | | |
| | | | | |
| | 675 | | | Brandywine Realty Trust | | | | | | | | | | | | | 8,228 | |
| | | | | |
| | 8,728 | | | Mack-Cali Realty Corporation | | | | | | | | | | | | | 227,888 | |
| | | | Total Office | | | | | | | | | | | | | 236,116 | |
| | | | Retail – 6.2% | | | | | | | | | | | | | | |
| | | | | |
| | 6,417 | | | AmREIT Inc., Class B | | | | | | | | | | | | | 110,052 | |
| | | | | |
| | 31,126 | | | CapitaMall Trust | | | | | | | | | | | | | 54,697 | |
| | | | | |
| | 7,171 | | | Inland Real Estate Corporation | | | | | | | | | | | | | 60,093 | |
| | | | | |
| | 41,752 | | | National Retail Properties, Inc. | | | | | | | | | | | | | 1,302,662 | |
| | | | | |
| | 21,208 | | | Ramco-Gershenson Properties Trust | | | | | | | | | | | | | 282,278 | |
| | | | | |
| | 30,115 | | | Urstadt Biddle Properties Inc. | | | | | | | | | | | | | 592,663 | |
| | | | | |
| | 69,511 | | | Westfield Realty Trust | | | | | | | | | | | | | 219,305 | |
| | | | Total Retail | | | | | | | | | | | | | 2,621,750 | |
| | | | Specialized – 3.3% | | | | | | | | | | | | | | |
| | | | | |
| | 5,201 | | | Health Care REIT, Inc. | | | | | | | | | | | | | 318,769 | |
| | | | | |
| | 4,808 | | | Healthcare Realty Trust, Inc. | | | | | | | | | | | | | 115,440 | |
| | | | | |
| | 13,582 | | | Omega Healthcare Investors Inc. | | | | | | | | | | | | | 323,931 | |
| | | | | |
| | 179,132 | | | Parkway Life Real Estate | | | | | | | | | | | | | 316,485 | |
| | | | | |
| | 31,248 | | | Summit Hotel Properties Inc. | | | | | | | | | | | | | 296,856 | |
| | | | | |
| | 109 | | | Universal Health Realty Income Trust | | | | | | | | | | | | | 5,517 | |
| | | | Total Specialized | | | | | | | | | | | | | 1,376,998 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $7,042,685) | | | | | | | | | | | | | 7,580,555 | |
| | | | | |
| Shares | | | Description (1) | | Coupon | | | | | Ratings (2) | | | Value | |
| | | | CONVERTIBLE PREFERRED SECURITIES – 2.2% | | | | | | | | | | | | | | |
| | | | | |
| | | | Electric Utilities – 1.1% | | | | | | | | | | | | | | |
| | | | | |
| | 4,067 | | | PPL Corporation | | | 8.750% | | | | | | N/R | | | $ | 218,520 | |
| | | | | |
| | 9,537 | | | NextEra Energy Inc. | | | 5.125% | | | | | | BBB | | | | 239,283 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | 457,803 | |
| | | | Office – 0.6% | | | | | | | | | | | | | | |
| | | | | |
| | 9,769 | | | Alexandria Real Estate Equities Inc. | | | 7.000% | | | | | | N/R | | | | 261,321 | |
| | | | Retail – 0.5% | | | | | | | | | | | | | | |
| | | | | |
| | 4,195 | | | Ramco-Gershenson Properties Trust, (3) | | | 7.250% | | | | | | N/R | | | | 222,838 | |
| | | | Total Convertible Preferred Securities (cost $915,821) | | | | | | | | | | | | | 941,962 | |
| | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | Coupon | | | | | Ratings (2) | | | Value | |
| | | | | | | | | | | | | | | | | | |
| | | | $25 PAR (OR SIMILAR) PREFERRED SECURITIES – 33.4% | | | | | | | | | | | | | | |
| | | | | |
| | | | Diversified – 0.6% | | | | | | | | | | | | | | |
| | | | | |
| | 5,956 | | | Cousins Property Inc. | | | 7.500% | | | | | | N/R | | | $ | 149,019 | |
| | | | | |
| | 3,530 | | | Cousins Property Inc. | | | 7.750% | | | | | | N/R | | | | 89,238 | |
| | | | Total Diversified | | | | | | | | | | | | | 238,257 | |
| | | | Electric Utilities – 2.6% | | | | | | | | | | | | | | |
| | | | | |
| | 8,928 | | | DTE Energy Company | | | 5.250% | | | | | | BBB– | | | | 224,986 | |
| | | | | |
| | 153,500 | | | First Philippine Holdings Corporation | | | 8.723% | | | | | | N/R | | | | 386,695 | |
| | | | | |
| | 10,150 | | | NextEra Energy Inc. | | | 5.889% | | | | | | BBB | | | | 508,109 | |
| | | | Total Electric Utilities | | | | | | | | | | | | | 1,119,790 | |
| | | | Finance – 2.4% | | | | | | | | | | | | | | |
| | | | | |
| | 999,000 | | | PHBS Limited | | | 6.625% | | | | | | N/R | | | | 1,010,239 | |
| | | | Industrials – 3.4% | | | | | | | | | | | | | | |
| | | | | |
| | 4,750 | | | First Industrial Realty Trust, Inc., Series K | | | 7.250% | | | | | | B+ | | | | 118,750 | |
| | | | | |
| | 13,503 | | | First Industrial Realty Trust, Inc., Series J | | | 7.250% | | | | | | B+ | | | | 338,520 | |
| | | | | |
| | 3,670 | | | First Potomac Realty Trust | | | 7.750% | | | | | | N/R | | | | 94,209 | |
| | | | | |
| | 21,117 | | | Glimcher Realty Trust | | | 7.500% | | | | | | B2 | | | | 536,161 | |
| | | | | |
| | 1,330 | | | Glimcher Realty Trust, Series G | | | 8.125% | | | | | | B2 | | | | 33,476 | |
| | | | | |
| | 7,462 | | | Monmouth Real Estate Investment Corp | | | 7.875% | | | | | | N/R | | | | 193,863 | |
| | | | | |
| | 3,687 | | | Prologis Inc., (4) | | | 6.750% | | | | | | BB | | | | 92,212 | |
| | | | | |
| | 869 | | | Prologis Inc. | | | 6.750% | | | | | | Baa3 | | | | 21,864 | |
| | | | Total Industrials | | | | | | | | | | | | | 1,429,055 | |
| | | | Office – 2.7% | | | | | | | | | | | | | | |
| | | | | |
| | 4,667 | | | Alexandria Real Estate Equities Inc., Series B | | | 6.450% | | | | | | Baa3 | | | | 122,975 | |
| | | | | |
| | 14,926 | | | Coresite Realty Corporation, (5) | | | 7.250% | | | | | | N/R | | | | 376,284 | |
| | | | | |
| | 12,012 | | | Corporate Office Properties Trust | | | 7.375% | | | | | | N/R | | | | 301,982 | |
| | | | | |
| | 11,508 | | | Kilroy Realty Corporation | | | 6.375% | | | | | | Ba1 | | | | 288,736 | |
| | | | | |
| | 2,287 | | | Lexington Realty Trust | | | 7.550% | | | | | | N/R | | | | 57,198 | |
| | | | Total Office | | | | | | | | | | | | | 1,147,175 | |
| | | | Real Estate – 1.9% | | | | | | | | | | | | | | |
| | | | | |
| | 32,643 | | | Forest City Enterprises Inc. | | | 7.375% | | | | | | B | | | | 795,183 | |
| | | | Real Estate Investment Trusts – 6.9% | | | | | | | | | | | | | | |
| | | | | |
| | 6,007 | | | Apollo Commercial Real Estate Finance | | | 8.625% | | | | | | N/R | | | | 157,083 | |
| | | | | |
| | 6,828 | | | Chesapeake Lodging Trust | | | 7.750% | | | | | | N/R | | | | 180,805 | |
| | | | | |
| | 28,364 | | | DDR Corporation | | | 6.500% | | | | | | Ba1 | | | | 693,783 | |
| | | | | |
| | 3,452 | | | Essex Property Trust | | | 7.125% | | | | | | BBB– | | | | 89,476 | |
| | | | | |
| | 17,281 | | | Investors Real Estate Trust | | | 7.950% | | | | | | N/R | | | | 449,306 | |
| | | | | |
| | 20,764 | | | SL Green Realty Corporation | | | 6.500% | | | | | | Ba2 | | | | 521,176 | |
| | | | | |
| | 15,916 | | | Taubman Centers Incorporated, Series J | | | 6.500% | | | | | | N/R | | | | 407,609 | |
| | | | | |
| | 16,550 | | | Terreno Realty Corporation | | | 7.750% | | | | | | N/R | | | | 430,466 | |
| | | | Total Real Estate Investment Trusts | | | | | | | | | | | | | 2,929,704 | |
| | | | Residential – 0.3% | | | | | | | | | | | | | | |
| | | | | |
| | 1,949 | | | Post Properties, Inc., Series A, (4) | | | 8.500% | | | | | | Baa3 | | | | 124,697 | |
| | | | Retail – 6.7% | | | | | | | | | | | | | | |
| | | | | |
| | 11,096 | | | CBL & Associates Properties Inc. | | | 6.625% | | | | | | N/R | | | | 276,956 | |
| | | | | |
| | 3,444 | | | CBL & Associates Properties Inc. | | | 7.375% | | | | | | N/R | | | | 86,272 | |
Portfolio of Investments
Nuveen Real Asset Income Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | Coupon | | | | | | Ratings (2) | | | Value | |
| | | | | | | | | | | | | | | | | | | | |
| | | | Retail (continued) | | | | | | | | | | | | | | | | |
| | | | | |
| | 13,964 | | | Cedar Shopping Centers Inc., Series A | | | 7.250% | | | | | | | | N/R | | | $ | 341,420 | |
| | | | | |
| | 4,101 | | | Excel Trust Inc. | | | 8.125% | | | | | | | | N/R | | | | 106,831 | |
| | | | | |
| | 14,824 | | | Kite Realty Group Trust | | | 8.250% | | | | | | | | N/R | | | | 380,236 | |
| | | | | |
| | 11,016 | | | Penn Real Estate Investment Trust | | | 7.375% | | | | | | | | N/R | | | | 278,815 | |
| | | | | |
| | 6,470 | | | Penn Real Estate Investment Trust | | | 8.250% | | | | | | | | N/R | | | | 170,032 | |
| | | | | |
| | 23,079 | | | Retail Properties of America Inc., (5) | | | 7.000% | | | | | | | | N/R | | | | 568,897 | |
| | | | | |
| | 14,570 | | | Urstadt Biddle Properties, Inc. | | | 7.125% | | | | | | | | N/R | | | | 378,674 | |
| | | | | |
| | 8,793 | | | Weingarten Realty Trust | | | 6.750% | | | | | | | | Baa3 | | | | 220,089 | |
| | | | Total Retail | | | | | | | | | | | | | | | 2,808,222 | |
| | | | Specialized – 5.2% | | | | | | | | | | | | | | | | |
| | | | | |
| | 12,074 | | | Hersha Hospitality Trust | | | 8.000% | | | | | | | | N/R | | | | 303,661 | |
| | | | | |
| | 2,236 | | | Pebblebrook Hotel Trust | | | 7.875% | | | | | | | | N/R | | | | 57,935 | |
| | | | | |
| | 10,919 | | | Pebblebrook Hotel Trust | | | 8.000% | | | | | | | | N/R | | | | 283,785 | |
| | | | | |
| | 36,258 | | | Summit Hotel Properties Inc. | | | 7.875% | | | | | | | | N/R | | | | 924,579 | |
| | | | | |
| | 11,345 | | | Summit Hotel Properties Inc. | | | 9.250% | | | | | | | | N/R | | | | 300,302 | |
| | | | | |
| | 5,606 | | | Sunstone Hotel Investors Inc., Series A | | | 8.000% | | | | | | | | N/R | | | | 139,085 | |
| | | | | |
| | 6,962 | | | Sunstone Hotel Investors Inc., Series D, (4) | | | 8.000% | | | | | | | | N/R | | | | 177,601 | |
| | | | Total Specialized | | | | | | | | | | | | | | | 2,186,948 | |
| | | | Utilities – 0.7% | | | | | | | | | | | | | | | | |
| | | | | |
| | 100,000 | | | RWE AG | | | 7.000% | | | | | | | | Baa2 | | | | 176,660 | |
| | | | | |
| | 116,000 | | | RWE AG | | | 7.000% | | | | | | | | Baa2 | | | | 127,310 | |
| | | | Total Utilities | | | | | | | | | | | | | | | 303,970 | |
| | | | Total $25 Par (or similar) Preferred Securities (cost $13,758,667) | | | | | | | | | | | | | | | 14,093,240 | |
| | | | | |
Principal
Amount (000) | | | Description (1) | | Coupon | | | Maturity | | | Ratings (2) | | | Value | |
| | | | CORPORATE BONDS – 23.0% | | | | | | | | | | | | | | | | |
| | | | | |
| | | | Building Products – 0.4% | | | | | | | | | | | | | | | | |
| | | | | |
| $ | 160 | | | Corporativo Javer S.A. de C.V, 144A | | | 9.875% | | | | 4/06/21 | | | | B1 | | | $ | 171,200 | |
| | | | Commercial Services & Supplies – 2.0% | | | | | | | | | | | | | | | | |
| | | | | |
| | 280 | | | ADS Waste Holdings Inc., 144A | | | 8.250% | | | | 10/01/20 | | | | CCC+ | | | | 294,000 | |
| | | | | |
| | 100 | | | Casella Waste Systems Inc., 144A | | | 7.750% | | | | 2/15/19 | | | | Caa1 | | | | 95,000 | |
| | | | | |
| | 350 | | | Casella Waste Systems Inc. | | | 7.750% | | | | 2/15/19 | | | | B– | | | | 332,500 | |
| | | | | |
| | 130 | | | EnergySolutions Inc. | | | 10.750% | | | | 8/15/18 | | | | B | | | | 122,850 | |
| | 860 | | | Total Commercial Services & Supplies | | | | | | | | | | | | | | | 844,350 | |
| | | | Diversified Financial Services – 4.3% | | | | | | | | | | | | | | | | |
| | | | | |
| | 615 | | | Origin Energy Finance Limited | | | 7.875% | | | | 6/16/71 | | | | Baa3 | | | | 852,363 | |
| | | | | |
| | 800 | | | Royal Capital BV | | | 8.375% | | | | N/A (6) | | | | N/R | | | | 865,889 | |
| | | | | |
| | 98 | | | SinOceanic II AS | | | 10.000% | | | | 2/17/15 | | | | N/R | | | | 98,260 | |
| | 1,513 | | | Total Diversified Financial Services | | | | | | | | | | | | | | | 1,816,512 | |
| | | | Diversified Telecommunication Services – 0.6% | | | | | | | | | | | | | | | | |
| | | | | |
| | 250 | | | CyrusOne LP, 144A | | | 6.375% | | | | 11/15/22 | | | | B+ | | | | 260,625 | |
| | | | Electric Utilities – 0.7% | | | | | | | | | | | | | | | | |
| | | | | |
| | 61 | | | APT Pipelines Ltd | | | 7.510% | | | | 9/30/72 | | | | N/R | | | | 66,420 | |
| | | | | |
| | 150 | | | TenneT Holding BV | | | 6.655% | | | | N/A (6) | | | | BBB | | | | 213,338 | |
| | 211 | | | Total Electric Utilities | | | | | | | | | | | | | | | 279,758 | |
| | | | | | | | | | | | | | | | | | | | |
Principal
Amount (000) | | | Description (1) | | Coupon | | | Maturity | | | Ratings (2) | | | Value | |
| | | | | | | | | | | | | | | | | | | | |
| | | | Energy Equipment & Services – 0.4% | | | | | | | | | | | | | | | | |
| | | | | |
| $ | 145 | | | NGPL PipeCo LLC | | | 7.119% | | | | 12/15/17 | | | | Ba3 | | | $ | 158,050 | |
| | | | Gas Utilities – 0.8% | | | | | | | | | | | | | | | | |
| | | | | |
| | 125 | | | AmeriGas Finance LLC | | | 6.750% | | | | 5/20/20 | | | | Ba2 | | | | 137,188 | |
| | | | | |
| | 209 | | | Suburban Propane Partners LP | | | 7.500% | | | | 10/01/18 | | | | BB– | | | | 225,197 | |
| | 334 | | | Total Gas Utilities | | | | | | | | | | | | | | | 362,385 | |
| | | | Health Care Providers & Services – 3.8% | | | | | | | | | | | | | | | | |
| | | | | |
| | 250 | | | Acadia Healthcare | | | 12.875% | | | | 11/01/18 | | | | B– | | | | 302,500 | |
| | | | | |
| | 250 | | | CHS/Community Health Systems, Inc. | | | 8.000% | | | | 11/15/19 | | | | B | | | | 270,625 | |
| | | | | |
| | 100 | | | HCA Holdings Inc. | | | 6.250% | | | | 2/15/21 | | | | B– | | | | 102,500 | |
| | | | | |
| | 135 | | | HealthSouth Corporation | | | 7.750% | | | | 9/15/22 | | | | BB– | | | | 147,994 | |
| | | | | |
| | 250 | | | Kindred Healthcare Inc., Term Loan | | | 8.250% | | | | 6/01/19 | | | | B– | | | | 243,125 | |
| | | | | |
| | 275 | | | National Mentor Holdings, 144A | | | 12.500% | | | | 2/15/18 | | | | CCC+ | | | | 281,187 | |
| | | | | |
| | 250 | | | Tenet Healthcare Corporation, 144A, WI/DD | | | 6.750% | | | | 2/01/20 | | | | B– | | | | 257,500 | |
| | 1,510 | | | Total Health Care Providers & Services | | | | | | | | | | | | | | | 1,605,431 | |
| | | | Household Durables – 0.2% | | | | | | | | | | | | | | | | |
| | | | | |
| | 75 | | | Desarrolla Homex S.A.B. de CV, 144A | | | 9.750% | | | | 3/25/20 | | | | Ba3 | | | | 81,375 | |
| | | | Independent Power Producers & Energy Traders – 1.3% | | | | | | | | | | | | | | | | |
| | | | | |
| | 158 | | | Calpine Corporation, 144A | | | 7.875% | | | | 1/15/23 | | | | BB | | | | 178,540 | |
| | | | | |
| | 105 | | | Mirant Americas Generation LLC | | | 8.500% | | | | 10/01/21 | | | | BB– | | | | 119,700 | |
| | | | | |
| | 215 | | | NRG Energy Inc. | | | 7.875% | | | | 5/15/21 | | | | BB | | | | 238,650 | |
| | 478 | | | Total Independent Power Producers & Energy Traders | | | | | | | | | | | | | | | 536,890 | |
| | | | Information Technology – 0.6% | | | | | | | | | | | | | | | | |
| | | | | |
| | 225 | | | Zayo Escrow Corporation | | | 10.125% | | | | 7/01/20 | | | | CCC+ | | | | 255,937 | |
| | | | Marine – 0.5% | | | | | | | | | | | | | | | | |
| | | | | |
| | 225 | | | Navios Maritime Acquisition Corporation | | | 8.625% | | | | 11/01/17 | | | | B | | | | 210,937 | |
| | | | Metals & Mining – 0.3% | | | | | | | | | | | | | | | | |
| | | | | |
| | 150 | | | WPE International Cooperatief U.A, 144A | | | 10.375% | | | | 9/30/20 | | | | B+ | | | | 129,000 | |
| | | | Oil, Gas & Consumable Fuels – 4.3% | | | | | | | | | | | | | | | | |
| | | | | |
| | 220 | | | Crosstex Energy Finance | | | 8.875% | | | | 2/15/18 | | | | B+ | | | | 237,600 | |
| | | | | |
| | 155 | | | Holly Energy Partners LP, 144A | | | 6.500% | | | | 3/01/20 | | | | BB– | | | | 165,850 | |
| | | | | |
| | 300 | | | Niska Gas Storage US LLC | | | 8.875% | | | | 3/15/18 | | | | B+ | | | | 308,250 | |
| | | | | |
| | 250 | | | Northern Tier Energy LLC, 144A | | | 7.125% | | | | 11/15/20 | | | | BB– | | | | 258,750 | |
| | | | | |
| | 140 | | | PBF Holding Company LLC, 144A | | | 8.250% | | | | 2/15/20 | | | | BB+ | | | | 150,850 | |
| | | | | |
| | 200 | | | Sabine Pass LNG LP | | | 7.500% | | | | 11/30/16 | | | | BB+ | | | | 220,500 | |
| | | | | |
| | 200 | | | Tesoro Logistics LP Finance Corporation, 144A | | | 5.875% | | | | 10/01/20 | | | | BB– | | | | 207,500 | |
| | | | | |
| | 231 | | | United Refining Inc., 144A | | | 10.500% | | | | 2/28/18 | | | | B | | | | 250,635 | |
| | 1,696 | | | Total Oil, Gas & Consumable Fuels | | | | | | | | | | | | | | | 1,799,935 | |
| | | | Real Estate Management & Development – 0.9% | | | | | | | | | | | | | | | | |
| | | | | |
| | 100 | | | Kennedy-Wilson Inc, 144A | | | 8.750% | | | | 4/01/19 | | | | BB– | | | | 106,500 | |
| | | | | |
| | 250 | | | Kennedy-Wilson Inc, 144A | | | 8.750% | | | | 4/01/19 | | | | BB– | | | | 266,250 | |
| | 350 | | | Total Real Estate Management & Development | | | | | | | | | | | | | | | 372,750 | |
| | | | Road & Rail – 0.7% | | | | | | | | | | | | | | | | |
| | | | | |
| | 300 | | | Inversiones Alsacia SA, 144A | | | 8.000% | | | | 8/18/18 | | | | Ba2 | | | | 301,664 | |
| | | | Transportation – 1.2% | | | | | | | | | | | | | | | | |
| | | | | |
| | 450 | | | Eurogate GmbH | | | 6.750% | | | | N/A (6) | | | | N/R | | | | 522,703 | |
| $ | 8,932 | | | Total Corporate Bonds (cost $9,395,882) | | | | | | | | | | | | | | | 9,709,502 | |
Portfolio of Investments
Nuveen Real Asset Income Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | | | | | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | | | Value | |
| | | | | | | | | | | | | | | | | | |
| | | | INVESTMENT COMPANIES – 1.3% | | | | | | | | | | | | | | |
| | | | | |
| | | | Gas Utilities – 0.6% | | | | | | | | | | | | | | |
| | | | | |
| | 646,962 | | | Cityspring Infrastructure Trust | | | | | | | | | | | | $ | 233,590 | |
| | | | Real Estate Management & Development – 0.7% | | | | | | | | | | | | | | |
| | | | | |
| | 189,755 | | | Starwood European Real Estate Finance Limited | | | | | | | | | | | | | 314,414 | |
| | | | Total Investment Companies (cost $517,088) | | | | | | | | | | | | | 548,004 | |
| | | | | |
Principal
Amount (000) | | | Description (1) | | Coupon | | | Maturity | | | | | Value | |
| | | | SHORT-TERM INVESTMENTS – 1.8% | | | | | | | | | | | | | | |
| | | | | |
| $ | 751 | | | Repurchase Agreement with State Street Bank, dated 12/31/12, repurchase price $751,280, collateralized by $770,000 U.S. Treasury Notes, 0.625%, due 8/31/17, value $771,081 | | | 0.010% | | | | 1/02/13 | | | | | $ | 751,279 | |
| | | | Total Short-Term Investments (cost $751,279) | | | | | | | | | | | | | 751,279 | |
| | | | Total Investments (cost $40,395,524) – 99.5% | | | | | | | | | | | | | 41,987,354 | |
| | | | Other Assets Less Liabilities – 0.5% | | | | | | | | | | | | | 199,214 | |
| | | | Net Assets – 100% | | | | | | | | | | | | $ | 42,186,568 | |
| | | | 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 Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| | (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| | (2) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| | (3) | | For fair value measurement disclosure purposes, Convertible Preferred Securities classified as Level 2. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| | (4) | | For fair value measurement disclosure purposes, $25 Par (or similar) Preferred Security classified as Level 2. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| | (5) | | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| | (6) | | Perpetual security. Maturity date is not applicable. |
| | WI/DD | | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
| | 144A | | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
| | ADR | | American Depositary Receipt. |
| | REIT | | Real Estate Investment Trust. |
See accompanying notes to financial statements.
Portfolio of Investments
Nuveen Real Estate Securities Fund
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | COMMON STOCKS – 0.4% | | | | | | | | | | |
| | | | | |
| | | | Capital Markets – 0.0% | | | | | | | | | | |
| | | | | |
| | 60,447 | | | HFF Inc. | | | | | | | | $ | 900,660 | |
| | | | Commercial Services & Supplies – 0.0% | | | | | | | | | | |
| | | | | |
| | 74,706 | | | Standard Parking Corporation, (2) | | | | | | | | | 1,642,785 | |
| | | | Health Care Providers & Services – 0.2% | | | | | | | | | | |
| | | | | |
| | 392,413 | | | Capital Senior Living Corporation, (2) | | | | | | | | | 7,334,199 | |
| | | | Real Estate – 0.0% | | | | | | | | | | |
| | | | | |
| | 34,331 | | | Newcastle Investment Corporation, (3), (4) | | | | | | | | | 15,106 | |
| | | | Real Estate Management & Development – 0.2% | | | | | | | | | | |
| | | | | |
| | 383,988 | | | Forest City Enterprises, Inc. | | | | | | | | | 6,201,406 | |
| | | | Total Common Stocks (cost $10,616,060) | | | | | | | | | 16,094,156 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 98.2% | | | | | | | | | | |
| | | | | |
| | | | Diversified – 7.7% | | | | | | | | | | |
| | | | | |
| | 140,486 | | | American Assets Trust Inc | | | | | | | | $ | 3,923,774 | |
| | | | | |
| | 2,904,124 | | | Cousins Properties, Inc. | | | | | | | | | 24,249,435 | |
| | | | | |
| | 2,657,509 | | | Duke Realty Corporation, (2) | | | | | | | | | 36,859,650 | |
| | | | | |
| | 2,046,246 | | | Liberty Property Trust | | | | | | | | | 73,194,219 | |
| | | | | |
| | 972,463 | | | PS Business Parks Inc. | | | | | | | | | 63,190,646 | |
| | | | | |
| | 657,960 | | | Select Income REIT | | | | | | | | | 16,297,669 | |
| | | | | |
| | 964,146 | | | Vornado Realty Trust | | | | | | | | | 77,208,812 | |
| | | | | |
| | 864,844 | | | Washington Real Estate Investment Trust, (2) | | | | | | | | | 22,615,671 | |
| | | | Total Diversified | | | | | | | | | 317,539,876 | |
| | | | Industrial – 5.0% | | | | | | | | | | |
| | | | | |
| | 3,500,802 | | | DCT Industrial Trust Inc. | | | | | | | | | 22,720,205 | |
| | | | | |
| | 876,587 | | | EastGroup Properties Inc., (2) | | | | | | | | | 47,169,146 | |
| | | | | |
| | 2,123,974 | | | First Industrial Realty Trust, Inc., (2), (3) | | | | | | | | | 29,905,554 | |
| | | | | |
| | 5,346,416 | | | Mapletree Logistics Trust | | | | | | | | | 5,031,737 | |
| | | | | |
| | 2,444,166 | | | Prologis Inc., (2) | | | | | | | | | 89,187,617 | |
| | | | | |
| | 664,341 | | | Terreno Realty Corporation | | | | | | | | | 10,257,425 | |
| | | | Total Industrial | | | | | | | | | 204,271,684 | |
| | | | Mortgage – 0.2% | | | | | | | | | | |
| | | | | |
| | 267,395 | | | Starwood Property Trust Inc. | | | | | | | | | 6,139,389 | |
| | | | Office – 13.9% | | | | | | | | | | |
| | | | | |
| | 990,814 | | | Alexandria Real Estate Equities Inc. | | | | | | | | | 68,683,226 | |
| | | | | |
| | 1,721,576 | | | BioMed Realty Trust Inc. | | | | | | | | | 33,278,064 | |
| | | | | |
| | 2,166,381 | | | Boston Properties, Inc. | | | | | | | | | 229,224,774 | |
| | | | | |
| | 37,867 | | | Brandywine Realty Trust | | | | | | | | | 461,599 | |
| | | | | |
| | 733,559 | | | Corporate Office Properties | | | | | | | | | 18,324,304 | |
| | | | | |
| | 797,696 | | | Digital Realty Trust Inc., (2) | | | | | | | | | 54,155,581 | |
| | | | | |
| | 625,172 | | | Douglas Emmett Inc. | | | | | | | | | 14,566,508 | |
| | | | | |
| | 331,071 | | | Dupont Fabros Technology Inc. | | | | | | | | | 7,998,675 | |
| | | | | |
| | 19,327 | | | Highwoods Properties, Inc., (2) | | | | | | | | | 646,488 | |
| | | | | |
| | 426,678 | | | Kilroy Realty Corporation | | | | | | | | | 20,211,737 | |
Portfolio of Investments
Nuveen Real Estate Securities Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | Office (continued) | | | | | | | | | | |
| | | | | |
| | 179,193 | | | Mack-Cali Realty Corporation | | | | | | | | $ | 4,678,729 | |
| | | | | |
| | 13,121 | | | Parkway Properties Inc. | | | | | | | | | 183,563 | |
| | | | | |
| | 2,795,863 | | | Piedmont Office Realty Trust, (2) | | | | | | | | | 50,465,327 | |
| | | | | |
| | 907,867 | | | SL Green Realty Corporation | | | | | | | | | 69,588,006 | |
| | | | Total Office | | | | | | | | | 572,466,581 | |
| | | | Residential – 17.6% | | | | | | | | | | |
| | | | | |
| | 1,983,457 | | | American Campus Communities Inc. | | | | | | | | | 91,496,871 | |
| | | | | |
| | 306,054 | | | Apartment Investment & Management Company, Class A, (2) | | | | | | | | | 8,281,821 | |
| | | | | |
| | 67,930 | | | Associated Estates Realty Corp. | | | | | | | | | 1,095,032 | |
| | | | | |
| | 867,745 | | | AvalonBay Communities, Inc. | | | | | | | | | 117,657,544 | |
| | | | | |
| | 1,066,410 | | | BRE Properties, Inc. | | | | | | | | | 54,205,620 | |
| | | | | |
| | 586,899 | | | Camden Property Trust, (2) | | | | | | | | | 40,032,381 | |
| | | | | |
| | 107,103 | | | Campus Crest Communities Inc. | | | | | | | | | 1,313,083 | |
| | | | | |
| | 1,082,701 | | | Colonial Properties Trust | | | | | | | | | 23,137,320 | |
| | | | | |
| | 776,211 | | | Education Realty Trust Inc., (2) | | | | | | | | | 8,258,885 | |
| | | | | |
| | 319,803 | | | Equity Lifestyles Properties Inc. | | | | | | | | | 21,519,544 | |
| | | | | |
| | 2,083,432 | | | Equity Residential, (2) | | | | | | | | | 118,068,091 | |
| | | | | |
| | 424,297 | | | Essex Property Trust Inc. | | | | | | | | | 62,223,155 | |
| | | | | |
| | 177,773 | | | Home Properties New York, Inc. | | | | | | | | | 10,899,263 | |
| | | | | |
| | 602,097 | | | Mid-America Apartment Communities, (2) | | | | | | | | | 38,985,781 | |
| | | | | |
| | 1,115,254 | | | Post Properties, Inc. | | | | | | | | | 55,706,937 | |
| | | | | |
| | 2,926,784 | | | UDR Inc., (2) | | | | | | | | | 69,598,924 | |
| | | | Total Residential | | | | | | | | | 722,480,252 | |
| | | | Retail – 29.6% | | | | | | | | | | |
| | | | | |
| | 1,858,198 | | | Acadia Realty Trust | | | | | | | | | 46,603,606 | |
| | | | | |
| | 4,013 | | | Alexander’s Inc. | | | | | | | | | 1,327,500 | |
| | | | | |
| | 1,464,157 | | | CapitaMall Trust | | | | | | | | | 2,572,924 | |
| | | | | |
| | 837,529 | | | CBL & Associates Properties Inc. | | | | | | | | | 17,763,990 | |
| | | | | |
| | 4,912,711 | | | Developers Diversified Realty Corporation, (2) | | | | | | | | | 76,933,054 | |
| | | | | |
| | 633,068 | | | Equity One Inc. | | | | | | | | | 13,300,759 | |
| | | | | |
| | 487,638 | | | Federal Realty Investment Trust | | | | | | | | | 50,724,105 | |
| | | | | |
| | 2,466,416 | | | General Growth Properties Inc., (2) | | | | | | | | | 48,958,358 | |
| | | | | |
| | 2,565,566 | | | Glimcher Realty Trust | | | | | | | | | 28,452,127 | |
| | | | | |
| | 2,775,624 | | | Kimco Realty Corporation | | | | | | | | | 53,625,056 | |
| | | | | |
| | 3,547,283 | | | Kite Realty Group Trust | | | | | | | | | 19,829,312 | |
| | | | | |
| | 1,501,263 | | | Macerich Company | | | | | | | | | 87,523,633 | |
| | | | | |
| | 3,695,654 | | | National Retail Properties, Inc., (2) | | | | | | | | | 115,304,405 | |
| | | | | |
| | 1,451,913 | | | Ramco-Gershenson Properties Trust, (2) | | | | | | | | | 19,324,962 | |
| | | | | |
| | 74,809 | | | Realty Income Corporation | | | | | | | | | 3,008,070 | |
| | | | | |
| | 542,125 | | | Regency Centers Corporation | | | | | | | | | 25,544,930 | |
| | | | | |
| | 125,438 | | | Retail Opportunity Investments Corporation, (2) | | | | | | | | | 1,613,133 | |
| | | | | |
| | 442,633 | | | Retail Properties of America Inc. | | | | | | | | | 5,298,317 | |
| | | | | |
| | 282,261 | | | Saul Centers Inc. | | | | | | | | | 12,077,948 | |
| | | | | |
| | 3,070,482 | | | Simon Property Group, Inc. | | | | | | | | | 485,412,499 | |
| | | | | |
| | 291,370 | | | Tanger Factory Outlet Centers | | | | | | | | | 9,964,854 | |
| | | | | | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | | | Value | |
| | | | | | | | | | | | | | | | | | |
| | | | Retail (continued) | | | | | | | | | | | | | | |
| | | | | |
| | 599,919 | | | Taubman Centers Inc. | | | | | | | | | | | | $ | 47,225,624 | |
| | | | | |
| | 1,135,114 | | | Urstadt Biddle Properties Inc. | | | | | | | | | | | | | 22,339,044 | |
| | | | | |
| | 389,439 | | | Weingarten Realty Trust | | | | | | | | | | | | | 10,425,282 | |
| | | | | |
| | 1,190,385 | | | Westfield Group | | | | | | | | | | | | | 13,146,496 | |
| | | | Total Retail | | | | | | | | | | | | | 1,218,299,988 | |
| | | | Specialized – 24.2% | | | | | | | | | | | | | | |
| | | | | |
| | 283,924 | | | American Tower REIT Inc. | | | | | | | | | | | | | 21,938,807 | |
| | | | | |
| | 48,621 | | | CubeSmart | | | | | | | | | | | | | 708,408 | |
| | | | | |
| | 2,521,155 | | | DiamondRock Hospitality Company | | | | | | | | | | | | | 22,690,395 | |
| | | | | |
| | 1,181,472 | | | Extra Space Storage Inc., (2) | | | | | | | | | | | | | 42,993,766 | |
| | | | | |
| | 3,568,817 | | | Health Care Property Investors Inc., (2) | | | | | | | | | | | | | 161,239,152 | |
| | | | | |
| | 1,434,875 | | | Health Care REIT, Inc., (2) | | | | | | | | | | | | | 87,943,489 | |
| | | | | |
| | 649,926 | | | Healthcare Realty Trust, Inc. | | | | | | | | | | | | | 15,604,723 | |
| | | | | |
| | 2,488,751 | | | Hersha Hospitality Trust | | | | | | | | | | | | | 12,443,755 | |
| | | | | |
| | 4,951,257 | | | Host Hotels & Resorts Inc. | | | | | | | | | | | | | 77,586,197 | |
| | | | | |
| | 879,383 | | | LaSalle Hotel Properties | | | | | | | | | | | | | 22,327,534 | |
| | | | | |
| | 291,597 | | | LTC Properties Inc. | | | | | | | | | | | | | 10,261,298 | |
| | | | | |
| | 6,088,095 | | | Parkway Life Real Estate | | | | | | | | | | | | | 10,756,274 | |
| | | | | |
| | 1,010,747 | | | Pebblebrook Hotel Trust | | | | | | | | | | | | | 23,348,256 | |
| | | | | |
| | 1,573,772 | | | Public Storage, Inc. | | | | | | | | | | | | | 228,133,989 | |
| | | | | |
| | 270,652 | | | RLJ Lodging Trust | | | | | | | | | | | | | 5,242,529 | |
| | | | | |
| | 626,087 | | | Sovran Self Storage Inc. | | | | | | | | | | | | | 38,880,003 | |
| | | | | |
| | 902,779 | | | Strategic Hotels & Resorts Inc., (3) | | | | | | | | | | | | | 5,777,786 | |
| | | | | |
| | 2,862,045 | | | Summit Hotel Properties Inc. | | | | | | | | | | | | | 27,189,428 | |
| | | | | |
| | 971,535 | | | Sunstone Hotel Investors Inc. | | | | | | | | | | | | | 10,405,140 | |
| | | | | |
| | 53,479 | | | Universal Health Realty Income Trust | | | | | | | | | | | | | 2,706,572 | |
| | | | | |
| | 2,547,820 | | | Ventas Inc., (2) | | | | | | | | | | | | | 164,894,910 | |
| | | | Total Specialized | | | | | | | | | | | | | 993,072,411 | |
| | | | Total Real Estate Investment Trust Common Stocks (cost $3,127,656,922) | | | | | | | | | | | | | 4,034,270,181 | |
| | | | | |
| Shares | | | Description (1) | | Coupon | | | | | Ratings (5) | | | Value | |
| | | | $25 PAR (OR SIMILAR) PREFERRED SECURITIES – 0.2% | | | | | | | | | | | | | | |
| | | | | |
| | | | Specialized – 0.2% | | | | | | | | | | | | | | |
| | | | | |
| | 170,453 | | | Summit Hotel Properties Inc., (2) | | | 7.875% | | | | | | N/R | | | $ | 4,346,551 | |
| | | | | |
| | 183,576 | | | Summit Hotel Properties Inc. | | | 9.250% | | | | | | N/R | | | | 4,859,257 | |
| | | | Total $25 Par (or similar) Preferred Securities (cost $8,850,725) | | | | | | | | | | | | | 9,205,808 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | | | Value | |
| | | | INVESTMENT COMPANIES – 0.1% | | | | | | | | | | | | | | |
| | | | | |
| | | | Real Estate Management & Development – 0.1% | | | | | | | | | | | | | | |
| | | | | |
| | 2,982,455 | | | Starwood European Real Estate Finance Limited | | | | | | | | | | | | $ | 4,941,770 | |
| | | | Total Investment Companies (cost $4,810,411) | | | | | | | | | | | | | 4,941,770 | |
Portfolio of Investments
Nuveen Real Estate Securities Fund (continued)
December 31, 2012
| | | | | | | | | | | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | | | | | | | | | | | |
| | | | INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 11.7% | | | | | | | | | | |
| | | | | |
| | | | Money Market Funds – 11.7% | | | | | | | | | | |
| | | | | |
| | 479,361,362 | | | Mount Vernon Securities Lending Prime Portfolio, 0.267% (6), (7) | | | | | | | | $ | 479,361,362 | |
| | | | Total Investments Purchased with Collateral from Securities Lending (cost $479,361,362) | | | | | | | | | 479,361,362 | |
| | | | | |
| Shares | | | Description (1) | | | | | | | | Value | |
| | | | SHORT-TERM INVESTMENTS – 0.7% | | | | | | | | | | |
| | | | | |
| | | | Money Market Funds – 0.7% | | | | | | | | | | |
| | | | | |
| | 28,236,918 | | | First American Treasury Obligations Fund, Class Z, 0.000%, (6) | | | | | | | | $ | 28,236,918 | |
| | | | Total Short-Term Investments (cost $28,236,918) | | | | | | | | | 28,236,918 | |
| | | | Total Investments (cost $3,659,532,398) – 111.3% | | | | | | | | | 4,572,110,195 | |
| | | | Other Assets Less Liabilities – (11.3)% | | | | | | | | | (462,453,190) | |
| | | | Net Assets – 100% | | | | | | | | $ | 4,109,657,005 | |
| | | | For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
| | (1) | | All percentages shown in the Portfolio of Investments are based on net assets. |
| | (2) | | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan at the end the reporting period was $467,063,257. |
| | (3) | | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| | (4) | | 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 classified as Level 3. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Investment Valuation for more information. |
| | (5) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| | (6) | | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
| | (7) | | 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 institutions. The Fund maintains collateral equal to at least 102% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Securities Lending for more information. |
| | REIT | | Real Estate Investment Trust. |
See accompanying notes to financial statements.
Statement of Assets & Liabilities
December 31, 2012
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real
Asset Income | | | Real Estate
Securities | |
Assets | | | | | | | | | | | | |
Investments, at value (cost $296,292,988, $40,395,524 and $3,180,171,036, respectively) | | $ | 325,196,509 | | | $ | 41,987,354 | | | $ | 4,092,748,833 | |
Investment purchased with collateral from securities lending (at cost, which approximates value) | | | — | | | | — | | | | 479,361,362 | |
Cash | | | 1,249 | | | | 463 | | | | — | |
Receivables: | | | | | | | | | | | | |
Dividends | | | 815,309 | | | | 188,450 | | | | 13,044,695 | |
Due from broker | | | — | | | | — | | | | 50,874 | |
Interest | | | 991 | | | | 225,282 | | | | — | |
Investments sold | | | 9,375,154 | | | | 654,053 | | | | 45,334,771 | |
Reclaims | | | 78,467 | | | | 4,181 | | | | — | |
Shares sold | | | 2,782,614 | | | | 458,941 | | | | 13,975,727 | |
Other assets | | | 64,572 | | | | 1,559 | | | | 49,602 | |
Total assets | | | 338,314,865 | | | | 43,520,283 | | | | 4,644,565,864 | |
Liabilities | | | | | | | | | | | | |
Cash overdraft | | | — | | | | — | | | | — | |
Payables: | | | | | | | | | | | | |
Collateral from securities lending program | | | — | | | | — | | | | 479,361,362 | |
Dividends | | | — | | | | 49 | | | | 307 | |
Investments purchased | | | 7,157,053 | | | | 1,138,303 | | | | 37,360,117 | |
Shares redeemed | | | 663,002 | | | | 139,190 | | | | 13,341,350 | |
Accrued expenses: | | | | | | | | | | | | |
Management fees | | | 224,554 | | | | 17,894 | | | | 2,550,513 | |
Directors fees | | | 2,237 | | | | 180 | | | | 64,876 | |
12b-1 distribution and service fees | | | 26,157 | | | | 5,593 | | | | 247,907 | |
Other | | | 137,243 | | | | 32,506 | | | | 1,982,427 | |
Total liabilities | | | 8,210,246 | | | | 1,333,715 | | | | 534,908,859 | |
Net assets | | $ | 330,104,619 | | | $ | 42,186,568 | | | $ | 4,109,657,005 | |
Class A Shares | | | | | | | | | | | | |
Net assets | | $ | 68,762,997 | | | $ | 10,364,676 | | | $ | 750,073,442 | |
Shares outstanding | | | 7,195,233 | | | | 465,478 | | | | 35,681,775 | |
Net asset value per share | | $ | 9.56 | | | $ | 22.27 | | | $ | 21.02 | |
Offering price per share (net asset value per share plus maximum sales
charge of 5.75% of offering price) | | $ | 10.14 | | | $ | 23.63 | | | $ | 22.30 | |
Class B Shares | | | | | | | | | | | | |
Net assets | | | N/A | | | | N/A | | | $ | 1,953,071 | |
Shares outstanding | | | N/A | | | | N/A | | | | 95,111 | |
Net asset value and offering price per share | | | N/A | | | | N/A | | | $ | 20.53 | |
Class C Shares | | | | | | | | | | | | |
Net assets | | $ | 14,291,065 | | | $ | 4,478,854 | | | $ | 69,934,612 | |
Shares outstanding | | | 1,505,623 | | | | 201,217 | | | | 3,397,186 | |
Net asset value and offering price per share | | $ | 9.49 | | | $ | 22.26 | | | $ | 20.59 | |
Class R3 Shares | | | | | | | | | | | | |
Net assets | | $ | 128,210 | | | | N/A | | | $ | 72,741,892 | |
Shares outstanding | | | 13,249 | | | | N/A | | | | 3,417,042 | |
Net asset value and offering price per share | | $ | 9.68 | | | | N/A | | | $ | 21.29 | |
Class I Shares | | | | | | | | | | | | |
Net assets | | $ | 246,922,347 | | | $ | 27,343,038 | | | $ | 3,214,953,988 | |
Shares outstanding | | | 25,800,897 | | | | 1,227,718 | | | | 151,200,350 | |
Net asset value and offering price per share | | $ | 9.57 | | | $ | 22.27 | | | $ | 21.26 | |
Net assets consist of: | | | | | | | | | | | | |
Capital paid-in | | $ | 298,986,496 | | | $ | 40,299,098 | | | $ | 3,250,435,560 | |
Undistributed (Over-distribution of) net investment income | | | (66,323 | ) | | | (49,860 | ) | | | (6,964,257 | ) |
Accumulated net realized gain (loss) | | | 2,281,985 | | | | 345,591 | | | | (46,392,135 | ) |
Net unrealized appreciation (depreciation) | | | 28,902,461 | | | | 1,591,739 | | | | 912,577,837 | |
Net assets | | $ | 330,104,619 | | | $ | 42,186,568 | | | $ | 4,109,657,005 | |
Authorized shares – per class | | | 2 billion | | | | 2 billion | | | | 2 billion | |
Par value per share | | $ | 0.0001 | | | $ | 0.0001 | | | $ | 0.0001 | |
| N/A – | Global Infrastructure and Real Asset Income do not offer Class B Shares. After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
Statement of Operations
Year Ended December 31, 2012
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real
Asset Income | | | Real
Estate Securities | |
Investment Income | | | | | | | | | | | | |
Dividend and interest income (net of foreign tax withheld of $697,210, $61,393 and $219,322, respectively) | | $ | 8,974,471 | | | $ | 1,704,082 | | | $ | 97,324,314 | |
Securities lending income, net | | | — | | | | — | | | | 1,270,095 | |
Total investment income | | | 8,974,471 | | | | 1,704,082 | | | | 98,594,409 | |
Expenses | | | | | | | | | | | | |
Management fees | | | 2,382,331 | | | | 197,359 | | | | 31,067,808 | |
12b-1 service fees – Class A | | | 151,571 | | | | 12,960 | | | | 1,878,678 | |
12b-1 distribution and service fees – Class B | | | N/A | | | | N/A | | | | 21,480 | |
12b-1 distribution and service fees – Class C | | | 123,087 | | | | 13,248 | | | | 643,736 | |
12b-1 distribution and service fees – Class R3(1) | | | 200 | | | | 111 | | | | 359,358 | |
Shareholder servicing agent fees and expenses | | | 209,198 | | | | 15,464 | | | | 5,303,602 | |
Custodian fees and expenses | | | 226,242 | | | | 96,729 | | | | 578,990 | |
Directors fees and expenses | | | 6,903 | | | | 836 | | | | 106,377 | |
Professional fees | | | 87,488 | | | | 42,015 | | | | 411,665 | |
Shareholder reporting expenses | | | 34,955 | | | | 10,985 | | | | 774,135 | |
Federal and state registration fees | | | 76,295 | | | | 17,203 | | | | 228,580 | |
Other expenses | | | 2,332 | | | | 989 | | | | 53,107 | |
Total expenses before fee waiver/expense reimbursement | | | 3,300,602 | | | | 407,899 | | | | 41,427,516 | |
Fee waiver/expense reimbursement | | | (494,941 | ) | | | (145,666 | ) | | | (866,741 | ) |
Net expenses | | | 2,805,661 | | | | 262,233 | | | | 40,560,775 | |
Net investment income (loss) | | | 6,168,810 | | | | 1,441,849 | | | | 58,033,634 | |
Realized and Unrealized Gain (Loss) | | | | | | | | | | | | |
Net realized gain (loss) from investments and foreign currency | | | 12,137,973 | | | | 957,183 | | | | 175,391,347 | |
Change in net unrealized appreciation (depreciation) of investments and foreign currency | | | 19,382,522 | | | | 1,539,555 | | | | 357,456,067 | |
Net realized and unrealized gain (loss) | | | 31,520,495 | | | | 2,496,738 | | | | 532,847,414 | |
Net increase (decrease) in net assets from operations | | $ | 37,689,305 | | | $ | 3,938,587 | | | $ | 590,881,048 | |
| N/A | – Global Infrastructure and Real Asset Income do not offer Class B Shares. |
| (1) | – After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
Statement of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | |
| | | Global Infrastructure | | | Real Asset Income | |
| | | Year Ended
12/31/12 | | | Two Months
Ended
12/31/11 | | | Year Ended
10/31/11 | | | Year Ended
12/31/12 | | | Period 9/13/11
(commencement
of operations)
through
12/31/11 | |
Operations | |
Net investment income (loss) | | $ | 6,168,810 | | | $ | 844,392 | | | $ | 4,126,700 | | | $ | 1,441,849 | | | $ | 135,801 | |
Net realized gain (loss) from: | |
Investments and foreign currency | | | 12,137,973 | | | | (1,088,026 | ) | | | 2,172,153 | | | | 957,183 | | | | 125,502 | |
Redemptions in-kind | | | — | | | | — | | | | — | | | | — | | | | — | |
Change in net unrealized appreciation (depreciation) of investments and foreign currency | | | 19,382,522 | | | | 1,536,103 | | | | (5,534,812 | ) | | | 1,539,555 | | | | 52,184 | |
Net increase (decrease) in net assets from operations | | | 37,689,305 | | | | 1,292,469 | | | | 764,041 | | | | 3,938,587 | | | | 313,487 | |
Distributions to Shareholders | | | | | | | | | | | | | | | | | | | | |
From net investment income: | | | | | | | | | | | | | | | | | | | | |
Class A | | | (1,408,692 | ) | | | (760,328 | ) | | | (1,049,188 | ) | | | (332,722 | ) | | | (581 | ) |
Class B | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class C | | | (179,680 | ) | | | (74,451 | ) | | | (111,436 | ) | | | (79,376 | ) | | | (486 | ) |
Class R3(1) | | | (2,208 | ) | | | (88 | ) | | | — | | | | (602 | ) | | | (549 | ) |
Class I | | | (6,163,756 | ) | | | (1,983,300 | ) | | | (1,696,981 | ) | | | (1,105,444 | ) | | | (120,712 | ) |
From accumulated net realized gains: | | | | | | | | | | | | | | | | | | | | |
Class A | | | (1,123,513 | ) | | | (1,267,002 | ) | | | (3,080,543 | ) | | | (180,929 | ) | | | — | |
Class B | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class C | | | (232,692 | ) | | | (263,092 | ) | | | (459,773 | ) | | | (64,049 | ) | | | — | |
Class R3(1) | | | (1,488 | ) | | | (187 | ) | | | (6 | ) | | | — | | | | — | |
Class I | | | (4,022,345 | ) | | | (2,726,959 | ) | | | (4,486,974 | ) | | | (481,631 | ) | | | — | |
Decrease in net assets from distributions to shareholders | | | (13,134,374 | ) | | | (7,075,407 | ) | | | (10,884,901 | ) | | | (2,244,753 | ) | | | (122,328 | ) |
Fund Share Transactions | |
Proceeds from sale of shares | | | 181,543,700 | | | | 13,179,987 | | | | 77,226,231 | | | | 30,998,443 | | | | 10,000,000 | |
Proceeds from shares issued to shareholders due to reinvestment of distributions | | | 6,486,813 | | | | 4,520,484 | | | | 7,871,757 | | | | 2,022,240 | | | | 122,328 | |
| | | 188,030,513 | | | | 17,700,471 | | | | 85,097,988 | | | | 33,020,683 | | | | 10,122,328 | |
Cost of shares redeemed | | | (62,020,696 | ) | | | (10,460,693 | ) | | | (50,578,994 | ) | | | (2,841,436 | ) | | | — | |
Cost of redemptions in-kind | | | — | | | | — | | | | — | | | | — | | | | — | |
Net increase (decrease) in net assets from Fund share transactions | | | 126,009,817 | | | | 7,239,778 | | | | 34,518,994 | | | | 30,179,247 | | | | 10,122,328 | |
Net increase (decrease) in net assets | | | 150,564,748 | | | | 1,456,840 | | | | 24,398,134 | | | | 31,873,081 | | | | 10,313,487 | |
Net assets at the beginning of period | | | 179,539,871 | | | | 178,083,031 | | | | 153,684,897 | | | | 10,313,487 | | | | — | |
Net assets at the end of period | | $ | 330,104,619 | | | $ | 179,539,871 | | | $ | 178,083,031 | | | $ | 42,186,568 | | | $ | 10,313,487 | |
Undistributed (Over-distribution of) net investment income at the end of period | | $ | (66,323 | ) | | $ | 563,563 | | | $ | 2,515,839 | | | $ | (49,860 | ) | | $ | 15,081 | |
| N/A | – Global Infrastructure and Real Asset Income do not offer Class B Shares. |
| (1) | – After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
Statement of Changes in Net Assets (continued)
| | | | | | | | | | | | |
| | | Real Estate Securities | |
| | | Year Ended
12/31/12 | | | Two Months
Ended
12/31/11 | | | Year Ended
10/31/11 | |
Operations | | | | | |
Net investment income (loss) | | $ | 58,033,634 | | | $ | 15,321,703 | | | $ | 49,529,347 | |
Net realized gain (loss) from: | | | | | |
Investments and foreign currency | | | 175,391,347 | | | | (12,717,545 | ) | | | 33,359,512 | |
Redemptions in-kind | | | — | | | | — | | | | 14,782,543 | |
Change in net unrealized appreciation (depreciation) of
investments and foreign currency | | | 357,456,067 | | | | 21,729,743 | | | | 167,799,657 | |
Net increase (decrease) in net assets from operations | | | 590,881,048 | | | | 24,333,901 | | | | 265,471,059 | |
Distributions to Shareholders | | | | | | | | | | | | |
From net investment income: | | | | | | | | | | | | |
Class A | | | (15,583,128 | ) | | | (4,160,552 | ) | | | (8,735,913 | ) |
Class B | | | (28,672 | ) | | | (8,875 | ) | | | (18,502 | ) |
Class C | | | (860,519 | ) | | | (237,281 | ) | | | (442,822 | ) |
Class R3 | | | (1,318,535 | ) | | | (326,844 | ) | | | (608,594 | ) |
Class I | | | (67,298,948 | ) | | | (14,450,265 | ) | | | (26,418,401 | ) |
From accumulated net realized gains: | | | | | | | | | | | | |
Class A | | | (23,186,752 | ) | | | (4,144,624 | ) | | | (9,657,846 | ) |
Class B | | | (61,771 | ) | | | (13,097 | ) | | | (31,804 | ) |
Class C | | | (2,153,298 | ) | | | (349,654 | ) | | | (839,205 | ) |
Class R3 | | | (2,195,554 | ) | | | (358,578 | ) | | | (832,024 | ) |
Class I | | | (97,222,367 | ) | | | (12,885,490 | ) | | | (28,892,916 | ) |
Decrease in net assets from distributions to shareholders | | | (209,909,544 | ) | | | (36,935,260 | ) | | | (76,478,027 | ) |
Fund Share Transactions | | | | | |
Proceeds from sale of shares | | | 1,466,271,905 | | | | 152,158,707 | | | | 1,446,745,719 | |
Proceeds from shares issued to shareholders due to
reinvestment of distributions | | | 158,621,477 | | | | 28,693,310 | | | | 59,682,755 | |
| | | 1,624,893,382 | | | | 180,852,017 | | | | 1,506,428,474 | |
Cost of shares redeemed | | | (1,023,309,961 | ) | | | (171,328,445 | ) | | | (937,711,181 | ) |
Cost of redemptions in-kind | | | — | | | | — | | | | (48,374,872 | ) |
Net increase (decrease) in net assets from Fund share
transactions | | | 601,583,421 | | | | 9,523,572 | | | | 520,342,421 | |
Net increase (decrease) in net assets | | | 982,554,925 | | | | (3,077,787 | ) | | | 709,335,453 | |
Net assets at the beginning of period | | | 3,127,102,080 | | | | 3,130,179,867 | | | | 2,420,844,414 | |
Net assets at the end of period | | $ | 4,109,657,005 | | | $ | 3,127,102,080 | | | $ | 3,130,179,867 | |
Undistributed (Over-distribution of) net investment income at
the end of period | | $ | (6,964,257 | ) | | $ | 12,759,121 | | | $ | 16,624,130 | |
See accompanying notes to financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK]
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding throughout each period: | | | | |
| | | | | | |
| Class (Commencement Date) | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions | | | | |
| | | | | | | |
| GLOBAL INFRASTRUCTURE | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Net
Asset
Value | | | Net
Invest-
ment
Income
(Loss)(a) | | | Net
Realized/
Unrealized
Gain
(Loss) | | | Total | | | From Net
Invest-
ment
Income | | | From Accum-
ulated Net Realized Gains(b) | | | Total | | | Ending
Net
Asset
Value | |
Class A (12/07) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | $ | 8.59 | | | $ | .21 | | | $ | 1.12 | | | $ | 1.33 | | | $ | (.20 | ) | | $ | (.16 | ) | | $ | (.36 | ) | | $ | 9.56 | |
2011(g) | | | 8.87 | | | | .04 | | | | .03 | | | | .07 | | | | (.13 | ) | | | (.22 | ) | | | (.35 | ) | | | 8.59 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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(e) | | | 10.00 | | | | .05 | | | | (3.62 | ) | | | (3.57 | ) | | | — | | | | — | | | | — | | | | 6.43 | |
Class C (11/08) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 8.53 | | | | .13 | | | | 1.11 | | | | 1.24 | | | | (.12 | ) | | | (.16 | ) | | | (.28 | ) | | | 9.49 | |
2011(g) | | | 8.75 | | | | .03 | | | | .03 | | | | .06 | | | | (.06 | ) | | | (.22 | ) | | | (.28 | ) | | | 8.53 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 9.32 | | | | .14 | | | | (.12 | ) | | | .02 | | | | (.11 | ) | | | (.48 | ) | | | (.59 | ) | | | 8.75 | |
2010 | | | 7.75 | | | | .09 | | | | 1.57 | | | | 1.66 | | | | (.09 | ) | | | — | | | | (.09 | ) | | | 9.32 | |
2009(f) | | | 6.48 | | | | .11 | | | | 1.24 | | | | 1.35 | | | | (.08 | ) | | | — | | | | (.08 | ) | | | 7.75 | |
Class R3 (11/08) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 8.68 | | | | .18 | | | | 1.15 | | | | 1.33 | | | | (.17 | ) | | | (.16 | ) | | | (.33 | ) | | | 9.68 | |
2011(g) | | | 8.95 | | | | .04 | | | | .02 | | | | .06 | | | | (.11 | ) | | | (.22 | ) | | | (.33 | ) | | | 8.68 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 9.40 | | | | .05 | | | | (.02 | ) | | | .03 | | | | — | | | | (.48 | ) | | | (.48 | ) | | | 8.95 | |
2010 | | | 7.78 | | | | .13 | | | | 1.59 | | | | 1.72 | | | | (.10 | ) | | | — | | | | (.10 | ) | | | 9.40 | |
2009(f) | | | 6.48 | | | | .14 | | | | 1.24 | | | | 1.38 | | | | (.08 | ) | | | — | | | | (.08 | ) | | | 7.78 | |
Class I (12/07) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 8.62 | | | | .23 | | | | 1.13 | | | | 1.36 | | | | (.25 | ) | | | (.16 | ) | | | (.41 | ) | | | 9.57 | |
2011(g) | | | 8.92 | | | | .04 | | | | .03 | | | | .07 | | | | (.15 | ) | | | (.22 | ) | | | (.37 | ) | | | 8.62 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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(e) | | | 10.00 | | | | .16 | | | | (3.73 | ) | | | (3.57 | ) | | | — | | | | — | | | | — | | | | 6.43 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(d) | | | | |
| | | | | | |
Total
Return(c) | | | Ending
Net
Assets
(000) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Portfolio
Turnover
Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.52 | % | | $ | 68,763 | | | | 1.43 | % | | | 2.08 | % | | | 1.24 | % | | | 2.28 | % | | | 200 | % |
| | .81 | | | | 51,681 | | | | 1.64 | * | | | 2.38 | * | | | 1.23 | * | | | 2.79 | * | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | .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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 14.58 | | | | 14,291 | | | | 2.19 | | | | 1.25 | | | | 1.99 | | | | 1.45 | | | | 200 | |
| | .62 | | | | 10,767 | | | | 2.39 | * | | | 1.64 | * | | | 1.98 | * | | | 2.05 | * | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | .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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.36 | | | | 128 | | | | 1.66 | | | | 1.67 | | | | 1.49 | | | | 1.84 | | | | 200 | |
| | .68 | | | | 7 | | | | 1.89 | * | | | 1.94 | * | | | 1.48 | * | | | 2.38 | * | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | .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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 15.78 | | | | 246,922 | | | | 1.18 | | | | 2.32 | | | | .99 | | | | 2.51 | | | | 200 | |
| | .85 | | | | 117,085 | | | | 1.39 | * | | | 2.65 | * | | | .98 | * | | | 3.06 | * | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 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 fee waiver and/or expense reimbursement from the Adviser, where applicable. |
| (e) | For the period December 17, 2007 (commencement of operations) through October 31, 2008. |
| (f) | For the period November 3, 2008 (commencement of operations) through October 31, 2009. |
| (g) | For the two months ended December 31, 2011. |
See accompanying notes to financial statements.
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding throughout each period: | | | | |
| | | | | | |
| Class (Commencement Date) | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions | | | | |
| | | | | | | |
| REAL ASSET INCOME | | | | | | | | | | | | | | | | | | | | | | |
Year Ended
December 31, | | Beginning
Net
Asset
Value | | | Net
Invest-
ment
Income
(Loss)(a) | | | Net
Realized/
Unrealized
Gain
(Loss) | | | Total | | | From Net
Invest-
ment
Income | | | From
Accum-
ulated Net Realized Gains(b) | | | Total | | | Ending
Net
Asset
Value | |
Class A (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | $ | 20.38 | | | $ | 1.22 | | | $ | 2.21 | | | $ | 3.43 | | | $ | (1.13 | ) | | $ | (.41 | ) | | $ | (1.54 | ) | | $ | 22.27 | |
2011(e) | | | 20.00 | | | | .26 | | | | .35 | | | | .61 | | | | (.23 | ) | | | — | | | | (.23 | ) | | | 20.38 | |
Class C (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 20.37 | | | | 1.08 | | | | 2.19 | | | | 3.27 | | | | (.97 | ) | | | (.41 | ) | | | (1.38 | ) | | | 22.26 | |
2011(e) | | | 20.00 | | | | .21 | | | | .35 | | | | .56 | | | | (.19 | ) | | | — | | | | (.19 | ) | | | 20.37 | |
Class I (9/11) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 20.38 | | | | 1.24 | | | | 2.24 | | | | 3.48 | | | | (1.18 | ) | | | (.41 | ) | | | (1.59 | ) | | | 22.27 | |
2011(e) | | | 20.00 | | | | .27 | | | | .36 | | | | .63 | | | | (.25 | ) | | | — | | | | (.25 | ) | | | 20.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(d) | | | | |
| | | | | | |
Total
Return(c) | | | Ending
Net
Assets
(000) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Portfolio
Turnover
Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 17.22 | % | | $ | 10,365 | | | | 1.68 | % | | | 5.06 | % | | | 1.17 | % | | | 5.57 | % | | | 177 | % |
| | 3.06 | | | | 52 | | | | 2.12 | * | | | 3.34 | * | | | 1.18 | * | | | 4.28 | * | | | 65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 16.36 | | | | 4,479 | | | | 2.33 | | | | 4.51 | | | | 1.92 | | | | 4.92 | | | | 177 | |
| | 2.82 | | | | 51 | | | | 2.87 | * | | | 2.59 | * | | | 1.93 | * | | | 3.53 | * | | | 65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 17.50 | | | | 27,343 | | | | 1.52 | | | | 5.10 | | | | .92 | | | | 5.70 | | | | 177 | |
| | 3.13 | | | | 10,159 | | | | 1.87 | * | | | 3.60 | * | | | .93 | * | | | 4.54 | * | | | 65 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions 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 fee waiver and/or expense reimbursement from the Adviser, where applicable. |
| (e) | For the period September 13, 2011 (commencement of operations) through December 31, 2011. |
See accompanying notes to financial statements.
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Selected data for a share outstanding throughout each period: | | | | |
| | | | | | | |
| Class (Commencement Date) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions | | | | |
| | | | | | | | |
REAL ESTATE SECURITIES | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Net
Asset
Value | | | Net
Invest-
ment
Income
(Loss)(a) | | | Net
Realized/
Unrealized
Gain
(Loss) | | | Total | | | From Net
Invest-
ment
Income | | | From Accum-
ulated Net Realized Gains(b) | | | Return
of
Capital | | | Total | | | Ending
Net
Asset
Value | |
Class A (9/95) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | $ | 18.76 | | | $ | .28 | | | $ | 3.07 | | | $ | 3.35 | | | $ | (.43 | ) | | $ | (.66 | ) | | $ | — | | | $ | (1.09 | ) | | $ | 21.02 | |
2011(e) | | | 18.84 | | | | .09 | | | | .05 | | | | .14 | | | | (.11 | ) | | | (.11 | ) | | | — | | | | (.22 | ) | | | 18.76 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 17.58 | | | | .29 | | | | 1.43 | | �� | | 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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 18.34 | | | | .11 | | | | 3.01 | | | | 3.12 | | | | (.27 | ) | | | (.66 | ) | | | — | | | | (.93 | ) | | | 20.53 | |
2011(e) | | | 18.42 | | | | .06 | | | | .04 | | | | .10 | | | | (.07 | ) | | | (.11 | ) | | | — | | | | (.18 | ) | | | 18.34 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 17.18 | | | | .14 | | | | 1.42 | | | | 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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 18.39 | | | | .12 | | | | 3.01 | | | | 3.13 | | | | (.27 | ) | | | (.66 | ) | | | — | | | | (.93 | ) | | | 20.59 | |
2011(e) | | | 18.46 | | | | .06 | | | | .05 | | | | .11 | | | | (.07 | ) | | | (.11 | ) | | | — | | | | (.18 | ) | | | 18.39 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 17.23 | | | | .14 | | | | 1.41 | | | | 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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 18.99 | | | | .23 | | | | 3.12 | | | | 3.35 | | | | (.39 | ) | | | (.66 | ) | | | — | | | | (1.05 | ) | | | 21.29 | |
2011(e) | | | 19.07 | | | | .08 | | | | .05 | | | | .13 | | | | (.10 | ) | | | (.11 | ) | | | — | | | | (.21 | ) | | | 18.99 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 17.79 | | | | .24 | | | | 1.46 | | | | 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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 12/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | 18.97 | | | | .35 | | | | 3.09 | | | | 3.44 | | | | (.49 | ) | | | (.66 | ) | | | — | | | | (1.15 | ) | | | 21.26 | |
2011(e) | | | 19.05 | | | | .10 | | | | .05 | | | | .15 | | | | (.12 | ) | | | (.11 | ) | | | — | | | | (.23 | ) | | | 18.97 | |
Year Ended 10/31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | 17.77 | | | | .34 | | | | 1.45 | | | | 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 | |
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Distributions 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 fee waiver and/or expense reimbursement from the Adviser, where applicable. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | |
| |
| | | | Ratios/Supplemental Data | |
| | | | | | | Ratios to Average
Net Assets Before
Waiver/Reimbursement | | | Ratios to Average
Net Assets After
Waiver/Reimbursement(d) | | | | |
| | | | | | |
Total
Return(c) | | | Ending
Net
Assets
(000) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Expenses | | | Net
Invest-
ment
Income
(Loss) | | | Portfolio
Turnover
Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 18.07 | % | | $ | 750,073 | | | | 1.28 | % | | | 1.33 | % | | | 1.26 | % | | | 1.35 | % | | | 76 | % |
| | .72 | | | | 722,221 | | | | 1.31 | * | | | 2.82 | * | | | 1.28 | * | | | 2.86 | * | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.94 | | | | 732,181 | | | | 1.28 | | | | 1.54 | | | | 1.27 | | | | 1.55 | | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 17.18 | | | | 1,953 | | | | 2.03 | | | | .54 | | | | 2.01 | | | | .56 | | | | 76 | |
| | .55 | | | | 2,233 | | | | 2.06 | * | | | 2.06 | * | | | 2.03 | * | | | 2.09 | * | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.18 | | | | 2,269 | | | | 2.03 | | | | .77 | | | | 2.02 | | | | .78 | | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 17.19 | | | | 69,935 | | | | 2.03 | | | | .57 | | | | 2.01 | | | | .60 | | | | 76 | |
| | .60 | | | | 59,469 | | | | 2.06 | * | | | 2.06 | * | | | 2.03 | * | | | 2.09 | * | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.13 | | | | 60,812 | | | | 2.04 | | | | .76 | | | | 2.02 | | | | .77 | | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 17.80 | | | | 72,742 | | | | 1.53 | | | | 1.09 | | | | 1.51 | | | | 1.12 | | | | 76 | |
| | .66 | | | | 62,888 | | | | 1.56 | * | | | 2.59 | * | | | 1.53 | * | | | 2.62 | * | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9.68 | | | | 63,335 | | | | 1.54 | | | | 1.30 | | | | 1.52 | | | | 1.31 | | | | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 18.34 | | | | 3,214,954 | | | | 1.03 | | | | 1.62 | | | | 1.01 | | | | 1.65 | | | | 76 | |
| | .78 | | | | 2,280,291 | | | | 1.06 | * | | | 3.08 | * | | | 1.03 | * | | | 3.12 | * | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10.24 | | | | 2,271,583 | | | | 1.04 | | | | 1.79 | | | | 1.02 | | | | 1.80 | | | | 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 | |
| (e) | For the two months ended December 31, 2011. |
See accompanying notes to financial statements.
Notes to Financial Statements
1. General Information and Significant Accounting Policies
General Information
Nuveen Investment Funds, Inc. (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”), Nuveen Real Asset Income Fund (“Real Asset Income”) and Nuveen Real Estate Securities Fund (“Real Estate Securities”) (each a “Fund” and collectively, the “Funds”), as diversified funds (non-diversified for Real Estate Securities), among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
On December 31, 2012, the Funds’ investment adviser converted from a Delaware corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisers, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisers, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
Global Infrastructure’s investment objective is to seek long-term growth of capital and income. Under normal market conditions, the Fund invests 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. Under normal market conditions, the Fund will also invest at least 40% of its net assets in securities of non-U.S. issuers and, in any case, will invest at least 30% of its net assets in such issuers. Up to 25% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Equity securities in which the Fund invests include common and preferred stocks, publicly-traded units of master limited partnerships (“MLP”s), and real estate investment trusts (“REIT”s). The Fund may also invest in exchange-traded funds (“ETFs”) and other investment companies. The Fund may invest in companies of any size.
Real Asset Income’s investment objective is to seek a high level of current income. The secondary investment objective of the Fund is to seek capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities issued by real asset related companies that are generating income at the time of purchase. Real asset related companies are defined as: (i) companies that are in the energy, telecommunications, utilities or materials sectors; (ii) companies in the real estate or transportation industry groups; (iii) companies, if not in one of these sectors or industries, that (a) derive at least 50% of their revenues or profits from the ownership, management, operation, development, construction, financing, or sale of real assets, or (b) have at least 50% of the fair market value of their assets invested in real assets; or (iv) pooled investment vehicles that primarily invest in the foregoing companies or that are otherwise designed primarily to provide investment exposure to real assets. The categories of real assets on which the Fund will focus its investments are infrastructure and real estate.
The Fund will invest in both equity securities and debt securities, but will not invest more than 40% of its net assets in debt securities. All or a portion of the Fund’s debt securities may be rated lower than investment grade (BB/Ba or lower). Equity securities in which the Fund may invest may be of any market capitalization and include common stock, preferred securities, hybrid securities and convertible securities, as well as interests in REITs, exchange-traded notes (“ETNs”), other investment companies (including ETFs) and equity securities issued by MLPs. Debt securities in which the Fund may invest include corporate debt obligations, mortgage-backed securities (“MBS”) and debt securities issued by MLPs.
The Fund will invest in non-U.S. securities, but will limit its exposure to emerging markets to 50% of its net assets at the time of purchase.
The infrastructure assets that Global Infrastructure and Real Asset Income invest consists of the physical structures and networks upon which the operation, growth and development of a community depends, which includes water, sewer, and energy utilities; transportation and communication networks; health care facilities, government accommodations, and other public service facilities; and shipping, timber, steel, alternative energy, and other resources and services necessary for the construction and maintenance of these physical structures and networks.
Real Estate Securities’ investment objective is to provide above average current income and long-term appreciation. Under normal market conditions, the Fund invests 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. These companies derive at least 50% of their revenues or profits from the ownership, construction, management, financing or sale of real estate, or have at least 50% of the fair market value of their assets invested in real estate. The majority of the Fund’s total assets will be invested in REITs. The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. The Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. 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.
After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares and distributed the proceeds to shareholders.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
Investment 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 the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange (“NYSE”). These securities may represent a transfer from a Level 1 to a Level 2 security.
The ETFs in which the Funds invest 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. 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.
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 Funds’ Board of Directors. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
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.
Notes to Financial Statements (continued)
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to earmark securities in the Funds’ portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of December 31, 2012, Global Infrastructure and Real Asset Income had when-issued/delayed delivery purchase commitments of $88,966 and $286,627, respectively. Real Estate Securities had no such outstanding purchase commitments.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. 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 Asset Income and 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.
Real Asset Income and Real Estate Securities receive substantial distributions from holdings in REITs. REIT distributions received by the Funds are generally comprised of ordinary income, long-term capital gains, and a return of REIT capital. The actual character of amounts received during the period is not known until after the fiscal year-end. For the fiscal year ended December 31, 2012, the character of distributions to Real Asset Income and Real Estate Securities from the REITs was 87.89% and 75.02% ordinary income, 4.89% and 11.61% long-term capital gains, and 7.22% and 13.37% return of REIT capital, respectively.
For the fiscal years ended December 31, 2012 and December 31, 2011, the Funds applied the actual character of distributions reported by the REITs in which the Funds invest to their receipts from the REITs. If a REIT held in the portfolio of investments did not report the actual character of its distributions during the period, the Funds treated the distributions as ordinary income.
The actual character of distributions made by the Funds during the fiscal years ended December 31, 2012 and December 31, 2011, is reflected in the accompanying financial statements.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a .25% annual 12b-1 service fee. 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”) if redeemed within twelve months of purchase. Global Infrastructure and Real Asset Income do not issue Class B Shares. Real Estate Securities will issue Class B Shares upon the exchange of Class B Shares from another Nuveen mutual fund or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class B Shares are subject to a CDSC of up to 5% depending upon the length of time the shares are 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 are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares are sold without an up-front sales charge but incur a .25% annual 12b-1 distribution and a .25% annual 12b-1 service fee. Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including forward foreign currency exchange contracts, futures and options. 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, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, forward foreign currency exchange contracts, futures, options purchased and options written, when applicable, are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations.
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 and options written are recognized as a component of “Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts, futures, options purchased and options written exchange contracts,” respectively, on the Statement of Operations, when applicable.
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including forward foreign currency exchange contracts, futures and options. Although the Funds are authorized to invest in such derivative instruments, and may do so in the future, they did not make any such investments during the fiscal year ended December 31, 2012.
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.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Securities Lending
In order to generate additional income, Global Infrastructure and Real Estate Securities may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutions. Each Fund’s policy is to receive cash collateral 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. The adequacy of the collateral is monitored on a daily basis. 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.
The Funds’ custodian serves as the securities lending agent for the Funds. Each Fund pays the custodian a fee based on the Fund’s proportional share of the custodian’s expense of operating its securities lending program. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities.
Notes to Financial Statements (continued)
Income from securities lending, net of fees paid, is recognized on the Statement of Operations as “Securities lending income, net.” Securities lending fees paid by each Fund during the fiscal year ended December 31, 2012, were as follows:
| | | | | | | | |
| | | Global
Infrastructure | | | Real Estate
Securities | |
Securities lending fees paid | | $ | — | | | $ | 127,679 | |
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 following is a summary of the three-tiered hierarchy of valuation input levels.
| | |
| Level 1 – | | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. |
| Level 2 – | | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 – | | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
| | | | | | | | | | | | | | | | |
| | | | |
| Global Infrastructure | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 303,214,481 | | | $ | — | | | $ | — | | | $ | 303,214,481 | |
Real Estate Investment Trust Common Stocks | | | 18,550,219 | | | | — | | | | — | | | | 18,550,219 | |
Preferred Stocks | | | 491,031 | | | | — | | | | — | | | | 491,031 | |
Investment Companies | | | 1,219,755 | | | | — | | | | — | | | | 1,219,755 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Money Market Funds | | | 1,721,023 | | | | — | | | | — | | | | 1,721,023 | |
Total | | $ | 325,196,509 | | | $ | — | | | $ | — | | | $ | 325,196,509 | |
| | | | |
| Real Asset Income | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 8,362,812 | | | $ | — | | | $ | — | | | $ | 8,362,812 | |
Real Estate Investment Trust Common Stocks | | | 7,580,555 | | | | — | | | | — | | | | 7,580,555 | |
Convertible Preferred Securities | | | 719,124 | | | | 222,838 | | | | — | | | | 941,962 | |
$25 Par (or similar) Preferred Securities | | | 13,698,730 | | | | 394,510 | | | | — | | | | 14,093,240 | |
Corporate Bonds | | | — | | | | 9,709,502 | | | | — | | | | 9,709,502 | |
Investment Companies | | | 548,004 | | | | — | | | | — | | | | 548,004 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | — | | | | 751,279 | | | | — | | | | 751,279 | |
Total | | $ | 30,909,225 | | | $ | 11,078,129 | | | $ | — | | | $ | 41,987,354 | |
| * | Refer to the Fund’s Portfolio of Investments for industry classifications and breakdown of Convertible Preferred Securities and $25 Par (or similar) Preferred Securities classified as Level 2. |
| | | | | | | | | | | | | | | | |
| Real Estate Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 16,079,050 | | | $ | — | | | $ | 15,106 | | | $ | 16,094,156 | |
Real Estate Investment Trust Common Stocks | | | 4,034,270,181 | | | | — | | | | — | | | | 4,034,270,181 | |
$25 Par (or similar) Preferred Securities | | | 9,205,808 | | | | — | | | | — | | | | 9,205,808 | |
Investment Companies | | | 4,941,770 | | | | — | | | | — | | | | 4,941,770 | |
Investments Purchased with Collateral from Securities Lending | | | 479,361,362 | | | | — | | | | — | | | | 479,361,362 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Money Market Funds | | | 28,236,918 | | | | — | | | | — | | | | 28,236,918 | |
Total | | $ | 4,572,095,089 | | | $ | — | | | $ | 15,106 | | | $ | 4,572,110,195 | |
| * | Refer to the Fund’s Portfolio of Investments for industry classifications and breakdown of Common Stocks classified as Level 3. |
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
3. 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 December 31, 2012.
Notes to Financial Statements (continued)
4. Fund Shares
Transactions in Fund shares were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Global Infrastructure | |
| | | Year Ended
12/31/12 | | | Two Months Ended
12/31/11 | | | Year Ended
10/31/11 | |
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 3,478,174 | | | $ | 31,964,173 | | | | 175,865 | | | $ | 1,527,234 | | | | 2,705,342 | | | $ | 24,727,760 | |
Class C | | | 425,964 | | | | 3,895,174 | | | | 54,181 | | | | 463,427 | | | | 480,324 | | | | 4,392,766 | |
Class R3 | | | 12,464 | | | | 119,239 | | | | 34 | | | | 300 | | | | 1,803 | | | | 15,212 | |
Class I | | | 15,769,171 | | | | 145,565,114 | | | | 1,289,919 | | | | 11,189,026 | | | | 5,250,706 | | | | 48,090,493 | |
Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 252,591 | | | | 2,409,930 | | | | 223,253 | | | | 1,888,705 | | | | 427,643 | | | | 3,809,219 | |
Class C | | | 39,983 | | | | 378,359 | | | | 33,304 | | | | 276,930 | | | | 52,119 | | | | 459,054 | |
Class R3 | | | 383 | | | | 3,696 | | | | 32 | | | | 272 | | | | 1 | | | | 5 | |
Class I | | | 385,771 | | | | 3,694,828 | | | | 276,879 | | | | 2,354,577 | | | | 402,870 | | | | 3,603,479 | |
| | | | 20,364,501 | | | | 188,030,513 | | | | 2,053,467 | | | | 17,700,471 | | | | 9,320,808 | | | | 85,097,988 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (2,553,265 | ) | | | (23,453,558 | ) | | | (545,510 | ) | | | (4,738,201 | ) | | | (3,083,940 | ) | | | (27,916,902 | ) |
Class C | | | (223,142 | ) | | | (2,020,642 | ) | | | (43,794 | ) | | | (372,426 | ) | | | (182,499 | ) | | | (1,637,264 | ) |
Class R3 | | | (441 | ) | | | (3,871 | ) | | | (899 | ) | | | (7,997 | ) | | | (918 | ) | | | (8,587 | ) |
Class I | | | (3,939,153 | ) | | | (36,542,625 | ) | | | (611,486 | ) | | | (5,342,069 | ) | | | (2,321,536 | ) | | | (21,016,241 | ) |
| | | | (6,716,001 | ) | | | (62,020,696 | ) | | | (1,201,689 | ) | | | (10,460,693 | ) | | | (5,588,893 | ) | | | (50,578,994 | ) |
Net increase (decrease) | | | 13,648,500 | | | $ | 126,009,817 | | | | 851,778 | | | $ | 7,239,778 | | | | 3,731,915 | | | $ | 34,518,994 | |
| | | | | | | | | | | | | | | | |
| | | Real Asset Income | |
| | | Year Ended
12/31/12 | | | For the period 9/13/11
(commencement of operations)
through 12/31/11 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 502,277 | | | $ | 10,954,370 | | | | 2,500 | | | $ | 50,000 | |
Class C | | | 196,333 | | | | 4,342,140 | | | | 2,500 | | | | 50,000 | |
Class R3 (1) | | | — | | | | — | | | | 2,500 | | | | 50,000 | |
Class I | | | 726,485 | | | | 15,701,933 | | | | 492,500 | | | | 9,850,000 | |
Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | |
Class A | | | 20,720 | | | | 457,333 | | | | 28 | | | | 581 | |
Class C | | | 5,423 | | | | 119,973 | | | | 24 | | | | 486 | |
Class R3 (1) | | | 28 | | | | 602 | | | | 27 | | | | 550 | |
Class I | | | 65,588 | | | | 1,444,332 | | | | 5,935 | | | | 120,711 | |
| | | | 1,516,854 | | | | 33,020,683 | | | | 506,014 | | | | 10,122,328 | |
Shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (60,047 | ) | | | (1,334,633 | ) | | | — | | | | — | |
Class C | | | (3,063 | ) | | | (64,284 | ) | | | — | | | | — | |
Class R3 (1) | | | (2,555 | ) | | | (53,023 | ) | | | — | | | | — | |
Class I | | | (62,790 | ) | | | (1,389,496 | ) | | | — | | | | — | |
| | | | (128,455 | ) | | | (2,841,436 | ) | | | — | | | | — | |
Net increase (decrease) | | | 1,388,399 | | | $ | 30,179,247 | | | | 506,014 | | | $ | 10,122,328 | |
| (1) | After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Real Estate Securities | |
| | | Year Ended
12/31/12 | | | Two Months Ended
12/31/11 | | | Year Ended
10/31/11 | |
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A – Exchanges | | | 8,467,179 | | | $ | 174,797,170 | | | | 1,011,119 | | | $ | 18,486,626 | | | | 16,324,022 | | | $ | 300,982,288 | |
Class B | | | 2,409 | | | | 50,036 | | | | 23 | | | | 418 | | | | 628 | | | | 14,851 | |
Class C | | | 659,491 | | | | 13,576,842 | | | | 19,012 | | | | 341,913 | | | | 779,165 | | | | 13,785,667 | |
Class R3 | | | 1,313,731 | | | | 27,304,524 | | | | 162,934 | | | | 2,996,919 | | | | 1,776,683 | | | | 33,484,435 | |
Class I | | | 59,538,575 | | | | 1,250,543,333 | | | | 7,093,789 | | | | 130,332,831 | | | | 58,492,947 | | | | 1,098,478,478 | |
Shares issued to shareholders due to reinvestment of distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 1,813,351 | | | | 37,580,459 | | | | 422,396 | | | | 7,962,177 | | | | 1,100,854 | | | | 16,977,574 | |
Class B | | | 4,063 | | | | 82,016 | | | | 1,002 | | | | 18,453 | | | | 2,278 | | | | 35,872 | |
Class C | | | 109,808 | | | | 2,221,592 | | | | 24,075 | | | | 444,569 | | | | 47,979 | | | | 748,495 | |
Class R3 | | | 167,407 | | | | 3,510,633 | | | | 35,889 | | | | 684,782 | | | | 86,268 | | | | 1,349,471 | |
Class I | | | 5,494,261 | | | | 115,226,777 | | | | 1,027,228 | | | | 19,583,329 | | | | 2,660,142 | | | | 40,571,343 | |
| | | | 77,570,275 | | | | 1,624,893,382 | | | | 9,797,467 | | | | 180,852,017 | | | | 81,270,966 | | | | 1,506,428,474 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (13,093,291 | ) | | | (269,917,042 | ) | | | (1,794,507 | ) | | | (32,794,551 | ) | | | (17,600,462 | ) | | | (326,048,135 | ) |
Class B | | | (33,103 | ) | | | (674,461 | ) | | | (2,493 | ) | | | (44,603 | ) | | | (54,583 | ) | | | (990,017 | ) |
Class C | | | (606,332 | ) | | | (12,281,609 | ) | | | (103,079 | ) | | | (1,847,251 | ) | | | (593,626 | ) | | | (10,696,935 | ) |
Class R3 | | | (1,375,299 | ) | | | (28,727,546 | ) | | | (208,631 | ) | | | (3,886,685 | ) | | | (1,238,584 | ) | | | (23,267,356 | ) |
Class I | | | (34,038,553 | ) | | | (711,709,303 | ) | | | (7,127,954 | ) | | | (132,755,355 | ) | | | (30,942,249 | ) | | | (576,708,738 | ) |
Class I – In-Kind | | | — | | | | — | | | | — | | | | — | | | | (2,759,547 | ) | | | (48,374,872 | ) |
| | | | (49,146,578 | ) | | | (1,023,309,961 | ) | | | (9,236,664 | ) | | | (171,328,445 | ) | | | (53,189,051 | ) | | | (986,086,053 | ) |
Net increase (decrease) | | | 28,423,697 | | | $ | 601,583,421 | | | | 560,803 | | | $ | 9,523,572 | | | | 28,081,915 | | | $ | 520,342,421 | |
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 year ended December 31, 2012, the period ended December 31, 2011, and the fiscal year ended October 31, 2011, were as follows:
| | | | | | | | | | | | |
| Fund | | Year Ended
12/31/12 | | | Period Ended
12/31/11 | | | Year Ended
10/31/11 | |
Real Estate Securities | | | 30,196 | | | | 1,868 | | | | 26,483 | |
5. Investment Transactions
Purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and short-term investments, where applicable) during the fiscal year ended December 31, 2012, were as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Purchases | | $ | 620,916,311 | | | $ | 72,694,082 | | | $ | 3,301,760,260 | |
Sales and maturities | | | 499,968,662 | | | | 43,829,386 | | | | 2,804,930,706 | |
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 December 31, 2012, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Cost of investments | | $ | 300,236,178 | | | $ | 40,532,424 | | | $ | 3,736,965,342 | |
Gross unrealized: | | | | | | | | | | | | |
Appreciation | | $ | 32,531,279 | | | $ | 1,681,735 | | | $ | 910,665,305 | |
Depreciation | | | (7,570,948 | ) | | | (226,805 | ) | | | (75,520,452 | ) |
Net unrealized appreciation (depreciation) of investments | | $ | 24,960,331 | | | $ | 1,454,930 | | | $ | 835,144,853 | |
Notes to Financial Statements (continued)
Permanent differences, primarily due to federal taxes paid, tax equalization, adjustments for investments in REITs, foreign currency reclassifications, investments in passive foreign investment companies, and distribution character reclassifications resulted in reclassifications among the Funds’ components of net assets at December 31, 2012, the Funds’ tax year end, as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Capital paid-in | | $ | (26,497 | ) | | $ | (2,264 | ) | | $ | (6,540,734 | ) |
Undistributed (Over-distribution of) net investment income | | | 955,640 | | | | 11,354 | | | | 7,332,790 | |
Accumulated net realized gain (loss) | | | (929,143 | ) | | | (9,090 | ) | | | (792,056 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2012, the Funds’ tax year end, were as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Undistributed net ordinary income* | | $ | 5,296,729 | | | $ | 380,795 | | | $ | 14,974,596 | |
Undistributed net long-term capital gains | | | 867,285 | | | | 51,836 | | | | 9,159,031 | |
| * | 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 periods indicated below, was designated for purposes of the dividends paid deduction as follows:
| | | | | | | | | | | | |
| Year Ended December 31, 2012 | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Distributions from net ordinary income* | | $ | 13,134,374 | | | $ | 2,214,236 | | | $ | 156,884,100 | |
Distributions from net long-term capital gains** | | | — | | | | 30,517 | | | | 53,025,444 | |
| | | | | | | | | | | | |
| Period Ended December 31, 2011 | | Global
Infrastructure*** | | | Real Asset
Income**** | | | Real Estate
Securities*** | |
Distributions from net ordinary income* | | $ | 4,897,468 | | | $ | 122,328 | | | $ | 56,500,814 | |
Distributions from net long-term capital gains | | | 2,177,939 | | | | — | | | | 43,583,313 | |
| | | | |
| Year-Ended October 31, 2011 | | Global
Infrastructure | |
Distributions from net ordinary income* | | $ | 10,457,147 | |
Distributions from net long-term capital gains | | | 427,754 | |
| * | Net ordinary income consists of net taxable income derived from dividends and interest, net short-term capital gains, if any. |
| ** | The Fund hereby designates as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce earnings and profits of the Fund related to net capital gain to zero for the tax year ended December 31, 2012. |
| *** | For the two-months ended December 31, 2011. |
| **** | For the period September 13, 2011 (commencement of operations) through December 31, 2011. |
During the Funds’ tax year ended December 31, 2012, Global Infrastructure utilized $746,051 of its capital loss carryforwards.
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds after December 31, 2010 will not be subject to expiration. During the Funds’ tax year ended December 31, 2012, there were no post-enactment capital losses generated by any of the Funds.
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| | | | | | | | | | | | |
| Average Daily Net Assets | | Global
Infrastructure
Fund-Level
Fee Rate | | | Real Asset
Income
Fund-Level
Fee Rate | | | Real Estate
Securities
Fund-Level
Fee Rate | |
For the first $125 million | | | .7500 | % | | | .6000 | % | | | .7000 | % |
For the next $125 million | | | .7375 | | | | .5875 | | | | .6875 | |
For the next $250 million | | | .7250 | | | | .5750 | | | | .6750 | |
For the next $500 million | | | .7125 | | | | .5625 | | | | .6625 | |
For the next $1 billion | | | .7000 | | | | .5500 | | | | .6500 | |
For net assets over $2 billion | | | .6750 | | | | .5250 | | | | .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 the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of December 31, 2012, the complex-level fee rate for each Fund was as follows: |
| | | | |
| Fund | | Complex-Level Fee Rate | |
Global Infrastructure | | | .1823 | % |
Real Asset Income | | | .1684 | |
Real Estate Securities | | | .1863 | |
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a wholly-owned subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
The Adviser has contractually agreed to waive fees and/or reimburse other Fund expenses of Global Infrastructure so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding any acquired Fund fees and expenses, do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table:
| | | | |
| | | Global
Infrastructure | |
Class A Shares | | | 1.25 | % |
Class C Shares | | | 2.00 | |
Class R3 Shares | | | 1.50 | |
Class I Shares | | | 1.00 | |
Expiration Date | | | February 28, 2013 | |
The Adviser has agreed to waive fees and/or reimburse expenses of Real Asset Income through April 30, 2014 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) for the Fund do not exceed 0.95% of the average daily net assets of any class of Fund shares. For Real Estate Securities, the Adviser agreed to reimburse management fees across all share classes through December 31, 2012, to the extent necessary to maintain Class I Share total annual operating expenses, not including any acquired fund fees and expenses, at 0.99% of daily net assets, provided that in no event will the Adviser be required to make any reimbursements that would result in an annualized net management fee of less than 0.81% of daily net assets.
The Adviser may also voluntarily reimburse expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser’s discretion.
The Trust pays no compensation directly to those of its directors who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board of Directors has adopted a deferred compensation plan for independent directors that enable directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Notes to Financial Statements (continued)
During the fiscal year ended December 31, 2012, Nuveen Securities, LLC (the “Distributor”), a wholly-owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Sales charges collected (Unaudited) | | $ | 117,193 | | | $ | 161,530 | | | $ | 354,192 | |
Paid to financial intermediaries (Unaudited) | | | 103,544 | | | | 140,570 | | | | 314,229 | |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended December 31, 2012, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
Commission advances (Unaudited) | | $ | 43,759 | | | $ | 38,430 | | | $ | 145,913 | |
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 the Distributor to compensate for commissions advanced to financial intermediaries. During the fiscal year ended December 31, 2012, the Distributor retained such 12b-1 fees as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
12b-1 fees retained (Unaudited) | | $ | 34,690 | | | $ | 12,259 | | | $ | 110,027 | |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended December 31, 2012, as follows:
| | | | | | | | | | | | |
| | | Global
Infrastructure | | | Real Asset
Income | | | Real Estate
Securities | |
CDSC retained (Unaudited) | | $ | 2,109 | | | $ | 27 | | | $ | 6,245 | |
As of December 31, 2012, Nuveen owned 535,973 Class I Shares of Real Asset Income.
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
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11 (“ASU No. 2011-11”) to enhance disclosures about financial instruments and derivative instruments that are subject to offsetting (“netting”) on the Statement of Assets and Liabilities. This information will enable users of the entity’s financial statements to evaluate the effect or potential effect of netting arrangements on the entity’s financial position. ASU No. 2011-11 is effective prospectively during interim or annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statements amounts and footnote disclosures, if any.
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 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. | | 216 |
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. | | 216 |
William C. Hunter 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | | Trustee | | 2004 | | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The 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 George Washington University. | | 216 |
David J. Kundert 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; Regent Emeritus, Member of Investment Committee, 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; member of the Board of Directors (Milwaukee), College Possible. | | 216 |
William J. Schneider 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. | | 216 |
Judith M. Stockdale 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | | Trustee | | 1997 | | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | | 216 |
Carole E. Stone 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). | | 216 |
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 West Wacker Drive Chicago, IL 60606 | | Trustee | | 2011 | | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; 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). | | 216 |
Terence J. Toth 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: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008); Mather Foundation Board (since 2012) and a member of its investment committee; formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | | 216 |
| | |
| Interested Trustee: | | | | |
John P. Amboian (2) 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, LLC. | | 216 |
Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed (3) | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Officer |
| | |
| Officers of the Funds: | | | | |
Gifford R. Zimmerman 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | | Chief Administrative Officer | | 1988 | | Managing Director (since 2002), Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, 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), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | | 216 |
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. | | 216 |
| | | | | | | | |
Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed (3) | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Officer |
Lorna C. Ferguson 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | | Vice President | | 1998 | | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | | 216 |
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, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | | 216 |
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 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, LLC.; 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. | | 216 |
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; Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc; formerly, Senior Vice President (2008-2011) of Nuveen Securities, LLC. | | 216 |
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. | | 216 |
Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed (3) | | 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 and Assistant Secretary (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, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | | 216 |
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). | | 216 |
Trustees and Officers (Unaudited) (continued)
| | | | | | | | |
Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed (3) | | Principal Occupation(s) Including other Directorships During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Officer |
Jeffery M. Wilson 3/13/56 333 West 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). | | 101 |
| (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) | 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. |
| (3) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
Annual Investment Management Agreement Approval Process
(Unaudited)
The Board of Trustees (each, a “Board” and each Trustee, a “Board Member”) of the Nuveen Global Infrastructure Fund (the “Global Infrastructure Fund”) and the Nuveen Real Estate Securities Fund (the “Real Estate Securities Fund” and together with the Global Infrastructure Fund, the “Funds”), including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, LLC (formerly known as Nuveen Fund Advisors, Inc.) (the “Advisor”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Advisor and Nuveen Asset Management, LLC (the “Sub-Advisor”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is required to consider the continuation of the Advisory Agreements on an annual basis. Accordingly, at an in-person meeting held on May 21-23, 2012 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
The Nuveen Real Asset Income Fund (the “Real Asset Income Fund”) is new. The initial advisory agreement between the Advisor and the Real Asset Income Fund and the initial sub-advisory agreement between the Advisor and the Sub-Advisor, on behalf of the Real Asset Income Fund, were approved separately at meetings of the Board of the Real Asset Income Fund held on July 25-27, 2011. The discussion of the initial approvals for the advisory and sub-advisory agreements for the Real Asset Income Fund was included in such fund’s annual report for the period ended December 31, 2011. The discussion below relates only to the renewal of the Advisory Agreements for the Funds (as defined above).
In preparation for their considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Advisor and the Sub-Advisor (the Advisor and the Sub-Advisor are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks, a comparison of Fund fees and expenses relative to peers, a description and assessment of shareholder service levels for the Funds, a summary of the performance of certain service providers, a review of product initiatives and shareholder communications and an analysis of the Advisor’s profitability with comparisons to comparable peers in the managed fund business. As part of their annual review, the Board also held a separate meeting on April 18-19, 2012, to review the Funds’ investment performance and consider an analysis provided by the Advisor of the Sub-Advisor which generally evaluated the Sub-Advisor’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of their review of the materials and discussions, the Board presented the Advisor with questions and the Advisor responded.
The materials and information prepared in connection with the annual review of the Advisory Agreements supplement the information and analysis provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Advisor and the Sub-Advisor. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Advisor which include, among other things, Fund performance, a review of the investment teams and reports on compliance, regulatory matters and risk management. The Board also meets with key investment personnel managing the Fund portfolios during the year. In October 2011, the Board also created two new standing committees (the Open-end Fund Committee and the Closed-end Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive issues and business practices of open-end and closed-end funds.
In addition, the Board continues its program of seeking to have the Board Members or a subset thereof visit each sub-advisor to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. Further, an ad hoc committee of the Board visited the then-current transfer agents of the Nuveen funds in 2011 and the audit committee of the Board visited the various pricing agents for the Nuveen funds in January 2012.
The Board considers factors and information that are relevant to its annual consideration of the renewal of the Advisory Agreements at the meetings held throughout the year. Accordingly, the Board considers the information provided and knowledge gained at these meetings when performing its annual review of the Advisory Agreements. The Independent Board Members are assisted throughout the process by independent legal counsel who provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts and met with the Independent Board Members in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members’ conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Advisor and its affiliates, the commitment of the Advisor to provide high quality service to the Funds, their overall confidence in the Advisor’s integrity and the Advisor’s responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line.
In considering advisory services, the Board recognized that the Advisor provides various oversight, administrative, compliance and other services for the Funds and the Sub-Advisor generally provides the portfolio investment management services to the Funds. In reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Advisor’s investment team and changes thereto, organization and history, assets under management, Fund objectives and mandate, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Advisor or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an inappropriate incentive to take undue risks. In addition, the Board considered the Advisor’s execution of its oversight responsibilities over the Sub-Advisor. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Advisor and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services and communications, administration of Board relations, regulatory and portfolio compliance and legal support. The Board further recognized Nuveen’s additional investments in personnel, including in compliance and risk management. In reviewing the services provided, the Board also reviewed materials describing various notable initiatives and projects the Advisor performed in connection with the open-end fund product line. These initiatives included efforts to eliminate product overlap through mergers or liquidations; commencement of various new funds; elimination of insurance mandates for various funds; updates in investment policies or guidelines for several funds; and reductions in management fees and expense caps for certain funds.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) based on data compiled by Nuveen that was provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks (i.e., benchmarks derived from multiple recognized benchmarks).
The Board reviewed reports, including a comprehensive analysis of the Funds’ performance and the applicable investment team. In this regard, the Board reviewed each Fund’s total return information compared to the returns of its Performance Peer Group and recognized and/or customized benchmarks for the quarter, one-, three- and five-year periods ending December 31, 2011, as well as performance information reflecting the first quarter of 2012 (or for the periods available for the Global Infrastructure Fund, which did not exist for part of the foregoing time frame).
In reviewing performance comparison information, the Independent Board Members recognized that the usefulness of the comparisons of the performance of certain funds with the performance of their respective Performance Peer Group may be limited because the Performance Peer Group may not adequately represent the objectives and strategies of the applicable funds or may be limited in size or number. In this regard, the Independent Board Members noted that the Performance Peer Group of the Global Infrastructure Fund was classified as having significant differences from such Fund based on various considerations such as special fund objectives, potential investable universe and the composition of the peer set (e.g., the number and size of competing funds and number of competing managers). The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder’s investment
period. In addition, although the performance below reflects the performance results for the time periods ending as of the most recent calendar year end (unless otherwise indicated), the Board also recognized that selecting a different ending time period may derive different results. Furthermore, while the Board is cognizant of the relevant performance of a fund’s peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund’s investment objectives, investment parameters and guidelines and recognized that the objectives, investment parameters and guidelines of peers and/or benchmarks may differ to some extent, thereby resulting in differences in performance results. Nevertheless, with respect to any Nuveen funds that the Board considers to have underperformed their peers and/or benchmarks from time to time, the Board monitors such funds closely and considers any steps necessary or appropriate to address such issues.
In considering the results of the comparisons for the Real Estate Securities Fund, the Independent Board Members observed, among other things, that such Fund had demonstrated generally favorable performance in comparison to peers, performing in the first quartile for the three- and five-year periods (although it was in the third quartile for the one-year period). As noted above, the Global Infrastructure Fund had significant differences from its Performance Peer Group. Therefore, the Independent Board Members considered the performance of such Fund compared to its benchmark. In this regard, the Independent Board Members noted that the Global Infrastructure Fund outperformed its benchmark for the one- and three-year periods.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds provided by an independent fund data provider (the “Peer Universe”) and to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the limited size and particular composition of the Peer Universe or Peer Group (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement or fee waivers; and the timing of information used may impact the comparative data, thereby limiting somewhat the ability to make a meaningful comparison with peers.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group. In reviewing the reports, the Board noted that the overwhelming majority of the Nuveen funds were at, close to or below their Peer Group or Peer Universe (if no separate Peer Group) average based on the net total expense ratio.
The Independent Board Members observed that the Global Infrastructure Fund had net management fees and a net expense ratio (including fee waivers and expense reimbursements, if any) below its peer averages. Further, they noted that the Real Estate Securities Fund had slightly higher net management fees than its peer average, but a net expense ratio in line with the peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature of services and range of fees offered by the Advisor to other clients, including separately managed accounts (both retail and institutional accounts), collective trusts, foreign investment funds offered by Nuveen and funds that are not offered by Nuveen but are sub-advised by one of Nuveen’s investment management teams. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In considering the fees of the Sub-Advisor, the Independent Board Members also considered the pricing schedule or fees that the Sub-Advisor charges for similar investment management services for other Nuveen funds, funds of other sponsors (if any), and other clients (such as retail and/or institutional managed accounts).
3. Profitability of Fund Advisers
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2011. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
In reviewing profitability, the Independent Board Members recognized the Advisor’s continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel in compliance, risk management, and product development as well as its ability to allocate resources to various areas of the Advisor as the need arises. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that the Advisor’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Advisor, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Advisor’s level of profitability was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. In addition, with the acquisition of the funds previously advised by FAF Advisors, Inc., the Board noted that a portion of such funds’ assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered, among other things, any sales charges, distribution fees and shareholder services fees received and retained by the Funds’ principal underwriter, an affiliate of the Advisor, which includes fees received pursuant to any 12b-1 plan. The Independent Board Members, therefore, considered the 12b-1 fees retained by Nuveen during the last calendar year.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Independent Board Members recognized that each Fund Adviser has the authority to pay a higher commission in return for brokerage and research services if it determines in good faith that the commission paid is reasonable in relation to the value of the brokerage and research services provided and may benefit from such soft dollar arrangements. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by a Fund Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Fund Adviser to manage the Fund. The Independent Board Members noted that the Fund Advisers’ profitability may be somewhat lower if they did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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.
Barclays U.S. Corporate High Yield Index: An index that covers the universe of fixed-rate, non-investment-grade corporate debt of issuers in non-emerging market countries. Eurobonds and debt issues from countries designated as emerging markets are excluded. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
BofA Merrill Lynch U.S. Preferred Fixed Rate Index: An index that consists of fixed rate U.S. dollar denominated preferred securities and fixed-to-floating rate securities that are callable prior to the floating rate period and are at least one year from the start of the floating rate period. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
BofA Merrill Lynch REIT Preferred Stock Index: An unmanaged index of investment grade Real Estate Investment Trust (REIT) preferred shares with a deal size in excess of $100 million, weighted by capitalization and considered representative of investment grade preferred real estate stock performance. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Lipper Global Flexible Portfolio Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Flexible Portfolio Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Real Estate Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Real Estate Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Specialty/Miscellaneous Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Specialty/Miscellaneous Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
MSCI U.S. REIT Index: An unmanaged index that tracks the performance of real estate investment trusts. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
Real Asset Income Blend: A custom index comprised of a weighting of 33% Standard & Poor’s (S&P) Global Infrastructure Index, 12% BofA Merrill Lynch Preferred Fixed Rate Index, 15% MSCI U.S. REIT Index, 20% BofA Merrill Lynch REIT Preferred Stock Index and 20% Barclays U.S. Corporate High Yield Index. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
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. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
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.
Additional Fund Information
Fund Manager
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered Public Accounting Firm
PricewaterhouseCoopersLLP
Chicago, IL
Custodians
U.S. Bank National Association
St. Paul, MN
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
Boston Financial
Data Services
Nuveen Investor Services
P.O. Box 8530
Boston, MA 02266-8530
(800) 257-8787
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 Global Infrastructure Fund | | | 20.00 | % | | | 56.00 | % |
Nuveen Real Asset Income Fund | | | 0.00 | | | | 0.00 | |
Nuveen Real Estate Securities Fund | | | 0.00 | | | | 0.00 | |
Foreign Taxes: Nuveen Global Infrastructure Fund paid qualifying foreign taxes of $507,878 and earned $4,867,881 foreign source income during the calendar year ended December 31, 2012. Pursuant to Section 853 of the Internal Revenue Code, the Fund hereby designates $0.01 per share as foreign taxes paid and $0.14 per share as income earned from foreign sources for the calendar year ended December 31, 2012. 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.
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the longterm goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates-Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management, and Gresham Investment Management. In total, Nuveen Investments managed approximately $219 billion as of December 31, 2012.
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-FREGIF-1212P
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/MutualFunds/ShareholderResources/FundGovernance.aspx. (To view the code, 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 PricewaterhouseCoopers 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 PricewaterhouseCoopers LLP 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 preapproval 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 December 31, 2012 | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 36,489 | | | | 0 | | | | 22,437 | | | | 0 | |
Real Estate Securities Fund | | | 50,868 | | | | 0 | | | | 1,000 | | | | 0 | |
Real Asset Income Fund | | | 35,659 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 123,016 | | | $ | 0 | | | $ | 23,437 | | | $ | 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 that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
| 3 | | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
| 4 | | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
| | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Real Estate Securities Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Real Asset Income Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
| | | | |
Fiscal Year Ended December 31, 2011 | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 22,600 | | | | 0 | | | | 0 | | | | 0 | |
Real Estate Securities Fund | | | 22,600 | | | | 0 | | | | 0 | | | | 0 | |
Real Asset Income Fund | | | 15,950 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 61,150 | | | $ | 0 | | | $ | 0 | | | $ | 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 that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
| 3 | | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
| 4 | | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
| | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Real Estate Securities Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Real Asset Income Fund | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
| | | | | | | | | | | | |
Fiscal Year Ended December 31, 2012 | | 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 December 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 December 31, 2012 | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 22,437 | | | | 0 | | | | 0 | | | | 22,437 | |
Real Estate Securities Fund | | | 1,000 | | | | 0 | | | | 0 | | | | 1,000 | |
Real Asset Income Fund | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 23,437 | | | $ | 0 | | | $ | 0 | | | $ | 23,437 | |
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
| | | | | | | | | | | | | | | | |
Fiscal Year Ended December 31, 2011 | | 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 | | | | | | | | | | | | | | | | |
Global Infrastructure Fund | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Real Estate Securities Fund | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Real Asset Income Fund | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
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. |
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/MutualFunds/ShareholderResources/FundGovernance.aspx and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.) |
| |
| (a)(2) | | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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: March 8, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| |
By (Signature and Title) | | /s/ Gifford R. Zimmerman |
| | Gifford R. Zimmerman |
| | Chief Administrative Officer |
| | (principal executive officer) |
Date: March 8, 2013
| | |
| |
| By (Signature and Title) | | /s/ Stephen D. Foy |
| | Stephen D. Foy |
| | Vice President and Controller |
| | (principal financial officer) |
Date: March 8, 2013
