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 31
Date of reporting period: June 30, 2013
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.
Semi-Annual Report
June 30, 2013
Share Class / Ticker Symbol | ||||||||||||
Fund Name | Class A | Class B | Class C | Class R3 | Class R6 | 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 | FREGX | FARCX |
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Dear Shareholders,
After nine years of serving as lead director and independent chairman of the Nuveen Fund Board, my term of office has come to an end as of June 30, 2013. It has been a privilege to use this space to communicate with you on some of the broad economic trends in the U.S. and abroad and how they are impacting the investment environment in which your funds operate. In addition, I have enjoyed offering some perspective on how your Board views the various Nuveen investment teams as they apply their investment disciplines in that investment environment.
My term has coincided with a particularly challenging period for both mutual fund sponsors and investors. Since 2000 there have been three periods of unusually strong stock market growth and two major market declines. Recent years have been characterized by a search for yield in fixed income securities to compensate for an extended period of very low interest rates. Funds are investing more in foreign and emerging markets that require extensive research capabilities to overcome the more limited transparency and higher volatility in those markets. New fund concepts often incorporate derivative financial instruments that offer efficient ways to hedge investment risk or gain exposure to selected markets. Fund trading teams operate in many new domestic and international venues with quite different characteristics. Electronic trading and global communication networks mean that fund managers must be able to thrive in financial markets that react instantaneously to newsworthy events and are more interconnected than ever.
Nuveen has committed additional resources to respond to these changes in the fund industry environment. It has added IT and research resources to assemble and evaluate the increased flow of detailed information on economies, markets and individual companies. Based on its experience during the financial crisis of 2008-09, Nuveen has expanded its resources dedicated to valuing and trading portfolio securities with a particular focus on stressed financial market conditions. It has added systems and experienced risk management professionals to work with investment teams to better help evaluate whether their funds’ risk exposures are appropriate in view of the return targets. The investment teams have also reflected on recent experience to reaffirm or modify their investment disciplines. Finally, experienced professionals and IT resources have been added to address new regulatory requirements designed to better inform and protect investors. The Nuveen Fund Board has enthusiastically encouraged these initiatives.
The Board has always viewed itself as your representatives to assure that Nuveen brings together experienced people, proven technologies and effective processes designed to produce results that meet investor expectations. It is important to note that our activities are highlighted by the annual contract renewal process. Despite its somewhat formal language, I strongly encourage you to read the summary because it offers an insight into our oversight process. The report is included in the back of this shareholder report. The renewal process is very comprehensive and includes a number of evaluations and discussions between the Board and Nuveen during the year. The summary also describes what has been achieved across the Nuveen fund complex and at individual funds such as yours.
As I leave the chairmanship and resume my role as a member of the Board, please be assured that I and my fellow Board members will continue to hold your interests uppermost in our minds as we oversee the management of your funds and that we greatly appreciate your confidence in your Nuveen fund.
Very sincerely,
Robert P. Bremner
August 22, 2013
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These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. For the Nuveen Global Infrastructure Fund, Jay Rosenberg has been the lead portfolio manager and John Wenker has been the co-portfolio manager since its inception in 2007. Tryg Sarsland was added as a co-portfolio manager to the Fund in December 2012. For the Nuveen Real Asset Income Fund, Jay has been the lead portfolio manager, while John and Jeff Schmitz, CFA, have co-managed the Fund since its inception in 2011. For the Nuveen Real Estate Securities Fund, John assumed portfolio management responsibilities in 1999, while Jay joined John as a lead portfolio manager of the Fund in 2005 and has served in that capacity since. 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 key investment strategies and the Funds’ performance for the six-month reporting period ended June 30, 2013.
Nuveen Global Infrastructure Fund
How did the Fund perform during the six-month reporting period ended June 30, 2013?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the six-month, one-year, five-year and since-inception periods ended June 30, 2013. 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 six-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 six-month reporting period, our strategy for managing the Fund remained consistent as we focused on buying global infrastructure companies that own and operate long life assets that have visible cash flows, strong balance sheets, manageable amounts of leverage and inelastic demand characteristics. We believe these types of companies will have ongoing access to capital and the best chances for producing sustainable and growing cash flow. The Fund is structured using a number of core infrastructure companies that we believe should provide long-term outperformance versus the market, combined with more opportunistic holdings that we believe are undervalued by the market in the short term. We have exposure around the globe to a mixture of holdings that represent significant value, as well as positions in companies that may prove to be more stable in a slowly growing global economy.
Over the six-month reporting period, the Fund outpaced its benchmarks as a result of strong stock selection and favorable weights in several sectors, particularly master limited partnerships (MLP), gas utilities, water and electric utilities. 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 beneficial in terms of avoiding the electric utilities sector in Brazil.
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, 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.
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Stock selection was particularly strong in the MLP and gas utilities sectors, adding favorably to the Fund’s six-month returns. In the MLP space, our strategy is to focus on companies that have greater than 75% of their earnings coming from fee-based structures without a lot of commodity price sensitivity. During the period, the Fund benefited from several opportunistic trades in MLP companies we like. The stock prices of these companies had sold off to levels that we believed represented good value. In the gas utilities sector, the Fund was rewarded for our ownership in U.S. gas companies, particularly several that have taken advantage of different types of vehicles, including MLPs, to spin off some of their pipeline assets.
In the water services sector, the Fund benefited from several out-of-index holdings, two from China and one from the United States. One of the Chinese companies in particular is benefiting from a growing pipeline of new projects, including waste water treatment plants and incineration projects. The Fund was also rewarded for increased exposure to U.S. water names, while maintaining a lower than historical weight in U.K. water companies. Although we like many of the U.K. water utilities, we attempted to side step some short-term regulatory noise that created uncertainty in the segment.
In the electric utilities sector, much of the Fund’s outperformance resulted from our deliberate avoidance of Brazilian companies. We continued to underweight Brazil’s utilities because of our long-term strategy of avoiding companies that could be significantly impacted by political and/or regulatory uncertainty. This stance was particularly helpful in the month of June when massive unrest sparked across Brazil as citizens protested over the country’s poor public services and political corruption. Elsewhere in the sector, results were enhanced by a number of positions in U.S. and Canadian 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 and subsequently experienced quite a strong run.
Airports were the only infrastructure sector of note that detracted during the reporting period; however, the Fund’s less than 2% position in cash was also a slight drag on results, especially during the strong up market through mid-May. In airports, much of the shortfall was due to our underweight to the company that runs the Charles De Gaulle airport in Paris. During the period, the French government decided to sell a large part of its position in the airport, which caused some price discovery in the name and led it to modestly outperform. However, positive results from our Fund’s underweight position in Mexican airports partially offset the shortfall. Our underweight was predicated on the belief that these companies were not attractively valued and also faced a variety of concerning issues and risks. This proved beneficial as Mexican airport stocks turned in weak results during the period.
Nuveen Real Asset Income Fund
How did the Fund perform during the six-month period ended June 30, 2013?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the six-month, one-year and since-inception periods ended June 30, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed the Barclays U.S. Corporate High Yield Index, the Real Asset Income Blend benchmark and the Lipper classification average over the six-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 yields. From the group of securities providing significant yields, we focus on owning
6 | Nuveen Investments |
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 six-month reporting period, the Fund continued to generate a higher level of yield than its Real Asset Income Blend benchmark, while experiencing positive attribution from three of its five major segments. The Fund’s top-performing area for the period was real estate investment trust (REIT) preferreds, followed by infrastructure common equity and REIT common equity. The high yield portfolio produced results in line with the high yield portion of the Comparative Benchmark, while the infrastructure preferred segment underperformed during the six-month period. Several strategic asset allocation shifts we made during the reporting period also benefited performance, as noted below.
In the REIT preferred segment, our Fund’s overweight versus the blended benchmark’s weight benefited results as the sector held up better during the reporting period. The strong income component of many our Fund’s holdings provided modest positive attribution. In particular, our non-rated REIT preferreds continued to perform well and we remained comfortable with the credits in our portfolio. Because these securities don’t have a preferred rating and therefore, appeal to a much smaller pool of investors, we can often find more pricing inefficiency in the market. However, they also offer yields that are quite a bit more attractive than their rated counterparts. Most of the Fund’s non-rated exposure is in cumulative preferred securities, although we do own several convertible preferreds. The convertible preferreds offer an acceptable level of yield with the option of upside potential if the conversion occurs.
In the infrastructure common equity sector, performance was aided by our significant underweight versus the benchmark during the period. In addition, stock selection was solid in the master limited partnership (MLP) space, while a slight increase in European exposure was also beneficial. Particularly later in the period when rates increased, our MLP exposure generally held up better than the index due to our focus on holdings with low commodity price risk and good growth potential.
The real estate common equity sector also benefited the Fund’s six-month reporting period results, with most of the positive effects generated in the first half of the reporting period. In the second half of the period, REIT common equities experienced some technical pressures as their perceived sensitivity to interest rates gave investors an excuse to take some gains and reduce exposure to an area that had performed exceptionally well in 2012. Our focus on smaller-cap, higher yielding REITs proved beneficial as these securities dramatically outperformed in the period’s first half. Also, Fund results were rewarded by our select reductions in the net lease space, which we made based on valuation after the segment’s strong run. These were some of the companies that had benefited earlier in the year from investors’ search for yield. We believed their valuations weren’t supported by the group’s lower growth profile as they generally have rather high payout ratios. These companies also typically have longer leases and are less able to quickly adjust their lease rates as rates rise, which hurts their profitability outlook.
The high yield portion of the Fund performed in line with the index as the market’s “risk-off” environment weighed on this portfolio during the final two months of the reporting period. After the high yield sector experienced massive inflows earlier in this year, market technicals reversed course as the segment had net outflows of $12.2 billion in June alone, according to Lipper, as exchange traded funds (ETFs) and other funds sold all together to fund large redemptions. Fortunately, our Fund had an underweight in this sector versus the blended benchmark, having sold into strength in the high yield market earlier this year. However, a few of the Fund’s emerging market bonds underperformed as the market’s risk aversion weighed even more heavily on securities from these regions. Although these emerging market holdings underperformed, we experienced no permanent credit impairments in the Fund’s high-yield portfolio.
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Meanwhile, security selection was solid in the infrastructure preferred/hybrid portfolio, as the individual holdings we selected provided excess returns versus the benchmark. However, the Fund’s significant overweight to this segment versus the benchmark was detrimental to relative performance as infrastructure preferreds underperformed the other four segments in its portfolio.
As is typical with this strategy, we remained active asset allocators during the period. We continued to lower the Fund’s U.S. exposure as we found new opportunities spread across many different countries around the world. Our long-term target for geographic distribution remains at roughly 50% U.S. exposure and 50% non-U.S. exposure. In REIT common equity, we increased the Fund’s exposure as the segment sold off later in the period. We believe we are positioned in solid companies with attractive yields and potential accretive growth opportunities. We maintained the Fund’s overweight in the infrastructure preferred/hybrid space, having capitalized on issuance of new utility preferreds in the first few months of 2013. Meanwhile, in REIT preferreds, we slightly trimmed the Fund’s overall exposure to the asset class; however, we still believe this segment is attractive and are maintaining a weight above our long-term target of 20%. We maintained the Fund’s significant underweight versus the blended benchmark in the infrastructure common segment throughout the period. However, we continued to search for attractive opportunities on the MLP side and possibly to increase the Fund’s weight to Europe as further stabilization continues. The MLPs we invest in, which represent a small portion of the overall segment, get the majority of their cash flows from fee-based arrangements without a lot of commodity price sensitivity. While the MLPs we purchase typically don’t have the highest yields, we believe they have significant growth potential, along with acceptable yield levels. In addition, many of the infrastructure companies we had been avoiding in Europe started to look more attractive for our portfolio, primarily in the toll road and regulated utilities sectors. In high yield, we maintained approximately the same weight throughout the period, but took advantage of a heavy month of new issuance in April to rotate out of some of the Fund’s more expensive names and into several more attractively valued bonds. At period end, we owned high-yield securities spread across U.S., emerging market and European debt and diversified among a number of real asset categories, with the greatest concentrations in the pipeline, hospital, technology infrastructure and electric utilities sectors.
We continue to believe that for a high income oriented product, our significant exposure to equities serves to reduce the Fund’s sensitivity to rising interest rates. On balance, we expect the dividends on these securities to rise in an improving economy.
Nuveen Real Estate Securities Fund
How did the Fund perform during the six-month period ended June 30, 2013?
The table in the Fund Performance and Expense Ratios section of this report provides Class A Share total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended June 30, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed the Lipper classification average, but underperformed the MSCI U.S. REIT Index over the six-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 six-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.
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As measured by the MSCI REIT Total Return Index, the public commercial real estate sector returned 6.36% for the reporting period, amidst significant volatility in response to an increase in the 10-year Treasury at the very end of the period. When compared to the broader U.S. equity market, Real Estate Investment Trusts (REITs) have underperformed by more than 7% versus the S&P 500® Index year-to-date through June 30, 2013. REIT fundamentals remained stable in the face of the rate rise as they have generally solid balance sheets and growing dividend yields as they pass through much of the income growth they have experienced to shareholders. Payout ratios are low by historical measures so the outlook is good for further dividend increases. While the rate increase certainly may impact companies’ financing costs, it is important to put those costs in historical context. Relative to historic averages, REITs still enjoy a very low cost of capital and the outlook for operating fundamentals is largely positive assuming slow, but improving economic growth.
The Fund underperformed its benchmark index for the six-month reporting period with a handful of sectors contributing positively to relative performance, led by industrials and net lease. Within the industrial sector, stock selection across the group drove our results, considering that the Fund had a slight overweight to the group, which modestly underperformed the overall REIT universe. The Fund benefited from a combination of overweight positions in a few smaller industrial companies with strong expected growth rates, along with mild overweight exposure to some higher yielding names.
While a small part of the index at just under 5%, net lease was the next best contributor to relative returns versus the benchmark for the Fund. After a considerably strong run, we had reduced select holdings in the space based on valuation. These were some of the companies that had benefited earlier in the year from investors’ search for yield. We believed their valuations weren’t supported by the group’s lower growth profile as they generally have rather high payout ratios. These companies also typically have longer leases and are less able to quickly adjust their lease rates as rates rise, which hurts their profitability outlook; therefore, our underweight to the group as a whole also benefited the Fund. The net lease sector includes a diverse group of companies with a wide range of property types and credit risk. The Fund was also rewarded for its focus on a net lease company with management credibility, a strong balance sheet and a strong credit metrics.
The health care REIT sector was the primary area of relative underperformance versus the benchmark for the period. The Fund is managed with a bottom-up, relative value style which leads to a somewhat sector neutral approach. However, during this six-month reporting period, we continued the portfolio’s significant health care underweight from last year as valuations in the sector seemed stretched. Many of the health care companies were trading at very significant premiums to their underlying asset values. This underweight position relative to the benchmark detracted from performance as health care continued to post solid gains within the REIT space for the six-month reporting period, largely due to their superior dividend yields.
While student housing represents only slightly more than 1% of the index, the Fund had a significant overweight to one name in the space, which resulted in underperformance. This particular company is of very high quality, but is one that underperformed due to lease signings that lagged those of the previous year. We continued to have confidence in the company’s ability to narrow the gap to the prior year’s numbers, while the market lacked that confidence and sold it off somewhat sharply in the second quarter. Valuation remains compelling and we continue to have confidence in the company and its management team; therefore, we are maintaining the Fund’s overweight position.
Apartments also underperformed as investors saw slowing revenue growth for the sector and supply issues surfaced in a couple of markets. The sector also had to deal with a technical overhang as the former Lehman/Archstone portfolio acquisition was absorbed by Equity Residential and Avalon Bay Communities. Our portfolio holdings of Coastal and better-growth Sunbelt companies underperformed relative to the high yield apartments REITs.
Finally, Fund performance was hindered by a less than 1% position in cash during a strongly advancing market environment overall for the six-month reporting period.
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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. While overall portfolio positioning was again little changed in the period, we continued to migrate the Fund toward higher-quality companies as opportunities presented themselves. Since the summer of last year, smaller-cap companies and higher-yielding names had done very well relative to their larger and higher-quality, higher growth competitors. From a valuation perspective, this had made some of those companies that had been out of favor more compelling. While moving the Fund that direction benefited our relative returns for the period, we have always favored diversification throughout the REIT sector. Our belief in diversification means that along with the quality bias just referenced, we typically maintain some opportunistic exposure to names that we believe are attractively valued in the short term, but are not candidates for long-term core positions. However, the portfolio ended the period with lower exposure to opportunistic names relative to its historic averages.
In addition, we made several shifts that we believe will effectively decrease the interest rate sensitivity of the portfolio. We have positioned the Fund in shorter duration leases and raised its weights in the hotel REIT, self-storage and apartment sectors. At the same time, we continue to underweight the health care REIT sector, while lowering the Fund’s weight in the net lease space.
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 three 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.
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Fund Performance and Expense Ratios (continued)
Nuveen Global Infrastructure Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of June 30, 2013
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception* | |||||||||||||
Class A Shares at NAV | 4.08% | 14.25% | 4.75% | 3.10% | ||||||||||||
Class A Shares at maximum Offering Price | -1.87% | 7.69% | 3.52% | 2.00% | ||||||||||||
S&P Global Infrastructure Index** | 2.31% | 9.70% | 0.22% | -1.03% | ||||||||||||
Lipper Specialty/Miscellaneous Funds Classification Average** | 0.58% | 6.24% | 4.69% | 1.37% | ||||||||||||
Class C Shares | 3.79% | 13.47% | N/A | 13.02% | ||||||||||||
Class R3 Shares | 3.93% | 13.98% | N/A | 13.45% | ||||||||||||
Class I Shares | 4.28% | 14.63% | 5.01% | 3.35% |
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 | 1.42% | 1.24% | ||||||
Class C Shares | 2.18% | 1.99% | ||||||
Class R3 Shares | 1.65% | 1.49% | ||||||
Class I Shares | 1.17% | 0.99% |
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 1.00% 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 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. |
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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 June 30, 2013
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception* | ||||||||||
Class A Shares at NAV | 3.40% | 12.96% | 13.18% | |||||||||
Class A Shares at maximum Offering Price | -2.55% | 6.46% | 9.51% | |||||||||
Barclays U.S. Corporate High Yield Index** | 1.42% | 9.49% | 11.62% | |||||||||
Real Asset Income Blend** | 1.69% | 6.92% | 11.06% | |||||||||
Lipper Global Flexible Portfolio Funds Classification Average** | 0.80% | 8.25% | 6.55% | |||||||||
Class C Shares | 3.01% | 12.07% | 12.33% | |||||||||
Class I Shares | 3.53% | 13.19% | 13.45% |
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 | 1.65% | 1.17% | ||||
Class C Shares | 2.30% | 1.92% | ||||
Class I Shares | 1.49% | 0.92% |
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. |
Nuveen Investments | 13 |
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 June 30, 2013
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 4.92% | 7.78% | 8.58% | 12.31% | ||||||||||||
Class A Shares at maximum Offering Price | -1.10% | 1.58% | 7.31% | 11.64% | ||||||||||||
MSCI U.S. REIT Index* | 6.36% | 9.03% | 7.64% | 10.82% | ||||||||||||
Lipper Real Estate Funds Classification Average* | 4.73% | 7.96% | 6.79% | 9.97% | ||||||||||||
Class B Shares w/o CDSC | 4.52% | 6.96% | 7.77% | 11.47% | ||||||||||||
Class B Shares w/CDSC | -0.48% | 1.96% | 7.63% | 11.47% | ||||||||||||
Class C Shares | 4.51% | 6.99% | 7.79% | 11.47% | ||||||||||||
Class R3 Shares | 4.74% | 7.48% | 8.32% | 12.05% | ||||||||||||
Class I Shares | 5.06% | 8.03% | 8.86% | 12.59% |
Cumulative | ||||
Since Inception** | ||||
Class R6 Shares | -7.67% |
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 R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Expense Ratios | ||||
Class A Shares | 1.28% | |||
Class B Shares | 2.03% | |||
Class C Shares | 2.03% | |||
Class R3 Shares | 1.53% | |||
Class R6 Shares | 0.90% | |||
Class I Shares | 1.03% |
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
** | Since inception return for Class R6 Shares is from 4/30/13. |
14 | Nuveen Investments |
Holding Summaries as of June 30, 2013
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 | 93.0% | |||
Real Estate Investment Trust Common Stocks | 4.0% | |||
Investment Companies | 0.3% | |||
Short-Term Investments | 2.6% | |||
Other2 | 0.1% |
Top Five Common Stock & Real Estate Investment Trust Common Stock Holdings1 | ||||
Enbridge Inc. | 3.9% | |||
National Grid PLC, Sponsored ADR | 3.8% | |||
American Tower REIT Inc. | 3.3% | |||
International Container Terminal Services, Inc. | 3.3% | |||
Duke Energy Corporation | 2.7% |
Nuveen Real Asset Income Fund
Portfolio Allocation1
Common Stocks | 21.3% | |||
Real Estate Investment Trust Common Stocks | 19.5% | |||
Convertible Preferred Securities | 2.3% | |||
$25 Par (or similar) Retail Structures | 22.5% | |||
Convertible Bonds | 1.5% | |||
Corporate Bonds | 26.3% | |||
Investment Companies | 1.4% | |||
Short-Term Investments | 2.7% | |||
Other2 | 2.5% |
Nuveen Real Estate Securities Fund
Portfolio Allocation1
Common Stocks | 1.4% | |||
Real Estate Investment Trust Common Stocks | 97.6% | |||
$25 Par (or similar) Retail Structures | 0.1% | |||
Convertible Bonds | 0.2% | |||
Investment Companies | 0.1% | |||
Short-Term Investments | 0.5% | |||
Other3 | 0.1% |
Portfolio Composition1 | ||||
Transportation | 23.3% | |||
Electric Utilities | 18.5% | |||
Oil, Gas & Consumable Fuels | 14.2% | |||
Gas Utilities | 10.2% | |||
Multi-Utilities | 10.0% | |||
Water Utilities | 5.6% | |||
Short-Term Investments | 2.6% | |||
Other4 | 15.6% |
Portfolio Composition1 | ||||
Retail | 15.2% | |||
Electric Utilities | 10.8% | |||
Specialized | 8.7% | |||
Oil, Gas & Consumable Fuels | 8.2% | |||
Multi-Utilities | 7.0% | |||
Mortgage | 4.7% | |||
Transportation | 4.2% | |||
Gas Utilities | 2.9% | |||
Health Care Providers & Services | 2.9% | |||
Diversified | 2.9% | |||
Construction & Engineering | 2.8% | |||
Industrial | 2.7% | |||
Office | 2.5% | |||
Diversified Financial Services | 2.2% | |||
Short-Term Investments | 2.7% | |||
Other4 | 19.6% |
Portfolio Composition1 | ||||
Retail | 28.8% | |||
Specialized | 25.6% | |||
Residential | 15.9% | |||
Office | 14.8% | |||
Industrial | 6.5% | |||
Diversified | 5.5% | |||
Short-Term Investments | 0.5% | |||
Other5 | 2.4% |
Country Allocation1 | ||||
United States | 36.4% | |||
Canada | 9.0% | |||
Hong Kong | 7.1% | |||
Australia | 6.1% | |||
United Kingdom | 4.7% | |||
Italy | 3.9% | |||
Singapore | 3.8% | |||
Philippines | 3.6% | |||
Brazil | 2.8% | |||
Short-Term Investments6 | 2.6% | |||
Other7 | 20.0% |
Top Five Common Stock & Real Estate Investment Trust Common Stock Holdings1 | ||||
National Grid PLC, Sponsored ADR | 3.5% | |||
Starwood Property Trust Inc. | 2.1% | |||
DUET Group | 1.7% | |||
Westfield Realty Trust | 1.6% | |||
Hutchison Port Holdings Trust | 1.3% |
Country Allocation1 | ||||
United States | 59.8% | |||
Australia | 8.2% | |||
United Kingdom | 5.5% | |||
Hong Kong | 4.6% | |||
Short-Term Investments6 | 2.7% | |||
Other7 | 19.2% |
Top Five Common Stock & Real Estate Investment Trust Common Stock Holdings1 | ||||
Simon Property Group, Inc. | 10.7% | |||
Public Storage, Inc. | 5.6% | |||
Health Care Property Investors Inc. | 4.5% | |||
Prologis Inc. | 4.3% | |||
Boston Properties, Inc. | 4.2% |
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 2.2% 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 5.5% of net assets. |
6 | Denominated in U.S. Dollars. |
7 | Includes other assets less liabilities and all countries less than 2.8% of net assets for Nuveen Global Infrastructure Fund and all countries less than 4.6% of net assets for Nuveen Real Asset Income Fund. |
Nuveen Investments | 15 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. Since the expense examples for Class R6 Shares of Nuveen Real Estate Securities Fund reflect only the first 61 days of the Class’s operations, they may not provide a meaningful understanding of the Class’s ongoing expenses.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period.
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 (1/01/13) | $ | 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 (6/30/13) | $ | 1,040.80 | $ | 1,037.90 | $ | 1,039.30 | $ | 1,042.80 | $ | 1,018.70 | $ | 1,014.98 | $ | 1,017.50 | $ | 1,019.93 | ||||||||||||||||||
Expenses Incurred During Period | $ | 6.22 | $ | 10.00 | $ | 7.43 | $ | 4.96 | $ | 6.16 | $ | 9.89 | $ | 7.35 | $ | 4.91 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.23%, 1.98%, 1.47% and 0.98% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (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 (1/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||
Ending Account Value (6/30/13) | $ | 1,034.00 | $ | 1,030.10 | $ | 1,035.30 | $ | 1,018.99 | $ | 1,015.27 | $ | 1,020.23 | ||||||||||||||
Expenses Incurred During Period | $ | 5.90 | $ | 9.66 | $ | 4.64 | $ | 5.86 | $ | 9.59 | $ | 4.61 |
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 181/365 (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 | R6 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | R6 Shares | I Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Account Value (1/01/13) | $ | 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 | $ | 1,000.00 | $ | 1,000.00 | |||||||||||||||||||||||||||||||||||||||||
Ending Account Value (6/30/13) | $ | 1,049.20 | $ | 1,045.20 | $ | 1,045.10 | $ | 1,047.40 | $ | 923.30 | $ | 1,050.60 | $ | 1,018.65 | $ | 1,014.93 | $ | 1,014.93 | $ | 1,017.41 | $ | 1,006.84 | $ | 1,019.89 | |||||||||||||||||||||||||||||||||||||||||
Expenses Incurred During Period | $ | 6.30 | $ | 10.09 | $ | 10.09 | $ | 7.56 | $ | 1.46 | $ | 5.03 | $ | 6.21 | $ | 9.94 | $ | 9.94 | $ | 7.45 | $ | 1.53 | $ | 4.96 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.24%, 1.99%, 1.99%, 1.49% and 0.99% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class R6, expenses are equal to the Fund’s annualized expense ratio of 0.91%, multiplied by 61/365 (to reflect 61 days in the period since class commencement of operations).
16 | Nuveen Investments |
Portfolio of Investments (Unaudited)
Nuveen Global Infrastructure Fund
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
COMMON STOCKS – 93.0% | ||||||||||||||
Air Freight & Logistics – 1.0% | ||||||||||||||
40,193 | Oesterreichische Post AG | $ | 1,569,508 | |||||||||||
3,956,464 | Singapore Post Limited | 4,057,912 | ||||||||||||
Total Air Freight & Logistics | 5,627,420 | |||||||||||||
Commercial Services & Supplies – 2.0% | ||||||||||||||
5,438,437 | China Everbright International Limited | 4,207,119 | ||||||||||||
151,789 | Covanta Holding Corporation | 3,038,816 | ||||||||||||
361,570 | K-Green Trust | 298,099 | ||||||||||||
16,073 | Serco Group PLC | 150,712 | ||||||||||||
161,072 | Standard Parking Corporation, (2) | 3,456,605 | ||||||||||||
Total Commercial Services & Supplies | 11,151,351 | |||||||||||||
Construction & Engineering – 0.8% | ||||||||||||||
248,504 | Ferrovial SA | 3,972,131 | ||||||||||||
11,027 | Vinci S.A | 553,388 | ||||||||||||
Total Construction & Engineering | 4,525,519 | |||||||||||||
Diversified Financial Services – 0.2% | ||||||||||||||
7,064,747 | Metro Pacific Investments Corporation | 863,469 | ||||||||||||
Electric Utilities – 18.5% | ||||||||||||||
90,714 | Alupar Investimento SA, (2) | 770,399 | ||||||||||||
213,622 | Brookfield Infrastructure Partners LP | 7,801,475 | ||||||||||||
539,910 | Cheung Kong Infrastructure Holdings Ltd | 3,598,913 | ||||||||||||
409,960 | CLP Holdings Limited | 3,316,762 | ||||||||||||
224,927 | Duke Energy Corporation | 15,182,573 | ||||||||||||
949,049 | E-CL SA | 1,606,509 | ||||||||||||
72,607 | Edison International | 3,496,753 | ||||||||||||
99,494 | EDP Energias do Brasil SA | 499,398 | ||||||||||||
15,169 | Elia System Operator SA NV | 635,184 | ||||||||||||
33,303 | Emera Inc | 1,045,924 | ||||||||||||
273,211 | Enersis SA | 4,469,732 | ||||||||||||
140,813 | Fortis Inc | 4,309,946 | ||||||||||||
82,334 | Hafslund ASA, Class B Shares | 637,055 | ||||||||||||
1,338,761 | Infratil Limited | 2,303,182 | ||||||||||||
27,872 | ITC Holdings Corporation | 2,544,714 | ||||||||||||
27,050 | NextEra Energy Inc. | 2,204,034 | ||||||||||||
272,919 | Northeast Utilities | 11,468,056 | ||||||||||||
31,952 | OGE Energy Corp. | 2,179,126 | ||||||||||||
79,689 | Pepco Holdings, Inc. | 1,606,530 | ||||||||||||
104,510 | Power Assets Holdings Ltd | 901,454 | ||||||||||||
523,496 | Power Grid Corporation of India Ltd | 980,481 | ||||||||||||
31,365 | Scottish and Southern Energy | 726,545 | ||||||||||||
187,361 | Southern Company | 8,268,241 | ||||||||||||
22,447 | SP Ausnet | 24,122 | ||||||||||||
4,073,246 | Spark Infrastructure Group | 6,463,223 | ||||||||||||
1,287,644 | Terna-Rete Elettrica Nazionale SpA | 5,349,959 | ||||||||||||
1,236 | UIL Holdings Corporation | 47,277 |
Nuveen Investments | 17 |
Portfolio of Investments (Unaudited)
Nuveen Global Infrastructure Fund (continued)
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
Electric Utilities (continued) | ||||||||||||||
134,533 | Unitil Corp. | $ | 3,885,313 | |||||||||||
136,437 | Westar Energy Inc. | 4,360,527 | ||||||||||||
78,170 | Xcel Energy, Inc. | 2,215,338 | ||||||||||||
Total Electric Utilities | 102,898,745 | |||||||||||||
Gas Utilities – 9.9% | ||||||||||||||
1,229 | Chesapeake Utilities Corporation | 63,281 | ||||||||||||
704 | China Resources Gas Group Limited | 1,815 | ||||||||||||
499,650 | ENN Energy Holdings Limited | 2,663,795 | ||||||||||||
124,954 | Envestra NPV | 113,706 | ||||||||||||
47,219 | GAIL India Limited, GDR | 1,551,144 | ||||||||||||
2,112,736 | Hong Kong and China Gas Company Limtied | 5,164,675 | ||||||||||||
688,148 | Infraestructura Energitca Nova SAB de CV, (2) | 2,490,248 | ||||||||||||
36,582 | Laclede Group Inc. | 1,670,334 | ||||||||||||
8,400 | Northwest Natural Gas Company | 356,832 | ||||||||||||
196,234 | ONEOK, Inc. | 8,106,427 | ||||||||||||
226,657 | Osaka Gas Company Limited | 957,545 | ||||||||||||
378,408 | Petronas Gas Berhad | 2,503,158 | ||||||||||||
230,078 | Piedmont Natural Gas Company | 7,762,832 | ||||||||||||
37,538 | Questar Corporation | 895,281 | ||||||||||||
31,319 | Rubis | 1,926,608 | ||||||||||||
2,658,350 | Snam Rete Gas S.p.A | 12,110,776 | ||||||||||||
43,749 | Southwest Gas Corporation | 2,047,016 | ||||||||||||
617,186 | Tokyo Gas Company Limited | 3,410,142 | ||||||||||||
578,390 | Towngas China Company Limited | 575,702 | ||||||||||||
20,455 | WGL Holdings Inc. | 884,065 | ||||||||||||
Total Gas Utilities | 55,255,382 | |||||||||||||
Independent Power Producers & Energy Traders – 0.5% | ||||||||||||||
45,141 | Brookfield Renewable Energy Partners LP | 1,246,882 | ||||||||||||
38,911 | Endesa SA Chile | 1,718,699 | ||||||||||||
Total Independent Power Producers & Energy Traders | 2,965,581 | |||||||||||||
Industrial Conglomerates – 0.9% | ||||||||||||||
356,353 | Beijing Enterprises Holdings | 2,566,037 | ||||||||||||
13,228 | NWS Holdings Limited | 20,364 | ||||||||||||
551,250 | SembCorp Industries Limited | 2,152,811 | ||||||||||||
Total Industrial Conglomerates | 4,739,212 | |||||||||||||
Media – 0.4% | ||||||||||||||
81,624 | SES SA | 2,337,396 | ||||||||||||
Multi-Utilities – 10.0% | ||||||||||||||
69,344 | AGL Energy Limited | 918,304 | ||||||||||||
51,256 | Canadian Utilities Limited, Class A Shares | 1,798,858 | ||||||||||||
201,091 | CenterPoint Energy, Inc. | 4,723,628 | ||||||||||||
393,460 | Centrica PLC | 2,155,568 | ||||||||||||
193,436 | CMS Energy Corporation | 5,255,656 | ||||||||||||
155,592 | Dominion Resources, Inc. | 8,840,737 | ||||||||||||
1,484,197 | DUET Group | 2,728,328 |
18 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Multi-Utilities (continued) | ||||||||||||||
8,871 | E ON SE | $ | 145,606 | |||||||||||
413,139 | Hera SpA | 783,515 | ||||||||||||
375,825 | National Grid PLC, Sponsored ADR | 21,298,003 | ||||||||||||
82,963 | NiSource Inc. | 2,376,060 | ||||||||||||
57,478 | Sempra Energy | 4,699,401 | ||||||||||||
62,939 | Vector Limited | 130,715 | ||||||||||||
Total Multi-Utilities | 55,854,379 | |||||||||||||
Oil, Gas & Consumable Fuels – 14.2% | ||||||||||||||
58,792 | Boardwalk Pipeline Partners, LP | 1,775,518 | ||||||||||||
518,961 | Enbridge Inc. | 21,832,689 | ||||||||||||
377,958 | Gibson Energy Incorporated | 8,858,671 | ||||||||||||
15,025 | Holly Energy Partneres L.P | 571,551 | ||||||||||||
199,994 | Kinder Morgan, Inc. | 7,629,771 | ||||||||||||
36,919 | Magellan Midstream Partners LP | 2,012,086 | ||||||||||||
4,826 | Oiltanking Partners LP | 245,161 | ||||||||||||
4,686 | Rose Rock Midstream Limited Partnership | 171,601 | ||||||||||||
1,957,319 | Sinopec Kantons Holdings Limited | 1,824,565 | ||||||||||||
162,561 | Spectra Energy Corporation | 5,601,852 | ||||||||||||
31,589 | Spectra Energy Partners, LP | 1,453,094 | ||||||||||||
34,147 | Tallgrass Energy Partners LP | 717,087 | ||||||||||||
255,881 | TransCanada Corporation | 11,031,030 | ||||||||||||
56,670 | Western Gas Partners, Lp | 3,677,316 | ||||||||||||
351,125 | Williams Companies, Inc. | 11,401,029 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 78,803,021 | |||||||||||||
Road & Rail – 2.5% | ||||||||||||||
1,093,225 | Aurizon Holdings Limited | 4,159,220 | ||||||||||||
3,648,149 | ComfortDelGro Corporation | 5,281,541 | ||||||||||||
933,029 | MTR Corporation | 3,440,492 | ||||||||||||
160,566 | Stagocoach Group PLC | 770,008 | ||||||||||||
Total Road & Rail | 13,651,261 | |||||||||||||
Transportation – 23.3% | ||||||||||||||
44,764 | Aeroports de Paris | 4,353,108 | ||||||||||||
128,761 | Atlantia SpA | 2,100,038 | ||||||||||||
3,531,317 | Auckland International Airport Limited | 8,127,658 | ||||||||||||
525,641 | CCR SA | 4,183,738 | ||||||||||||
1,498,151 | China Merchants Holdings International Company Limited | 4,664,790 | ||||||||||||
3,716,456 | Cosco Pacific Limited | 4,830,020 | ||||||||||||
244,620 | EcoRodovias Infraestrutura de Logistica S.A | 1,711,304 | ||||||||||||
8,707 | Flughafen Zuerich AG | 4,374,010 | ||||||||||||
132,701 | Fraport AG | 8,028,457 | ||||||||||||
794,354 | Gemina S.p.A, (2) | 1,424,804 | ||||||||||||
786,031 | Groupe Eurotunnel SA | 5,979,180 | ||||||||||||
1,017 | Grupo Aeroportuario Centro Norte, SA | 26,625 | ||||||||||||
62,309 | Grupo Aeroportuario del Sureste SA de CV | 6,931,253 | ||||||||||||
4,519,218 | Hutchison Port Holdings Trust | 3,321,625 |
Nuveen Investments | 19 |
Portfolio of Investments (Unaudited)
Nuveen Global Infrastructure Fund (continued)
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
Transportation (continued) | ||||||||||||||
8,989,533 | International Container Terminal Services, Inc | $ | 18,103,921 | |||||||||||
92,404 | Japan Airport Terminal Company | 1,466,464 | ||||||||||||
240,864 | Kamigumi Company Limited | 1,940,415 | ||||||||||||
241,411 | Koninklijke Vopak NV | 14,242,514 | ||||||||||||
122,335 | Macquarie Atlas Roads Group | 217,051 | ||||||||||||
665,070 | OHL Mexico SAB DE CV | 1,580,879 | ||||||||||||
377,537 | Port of Tauranga Limited | 4,066,742 | ||||||||||||
1,420,914 | Singapore Airport Terminal Services Limited | 3,688,211 | ||||||||||||
49 | Societa Iniziative Autostradali e Servizi SpA | 401 | ||||||||||||
2,777,447 | Sydney Airport | 8,585,617 | ||||||||||||
1,749,869 | Transuburban Group, | 10,818,355 | ||||||||||||
419,345 | Wilson Sons Ltd, BDR | 4,604,366 | ||||||||||||
Total Transportation | 129,371,546 | |||||||||||||
Water Utilities – 5.6% | ||||||||||||||
2,256,482 | Aguas Andinas SA – A | 1,607,363 | ||||||||||||
251,914 | American Water Works Company | 10,386,414 | ||||||||||||
4,159,906 | Beijing Enterprises Water Group | 1,491,035 | ||||||||||||
131,706 | California Water Service Group | 2,569,584 | ||||||||||||
157,738 | Companhia de Saneamento Basico do Estado de Sao Paulo, ADR | 1,642,053 | ||||||||||||
121,862 | Companhia de Saneamento de Minas Gervais Copasa MG | 1,975,919 | ||||||||||||
161,547 | Connecticut Water Service, Inc. | 4,636,399 | ||||||||||||
3,026,018 | Guangdong Investment Limited | 2,621,804 | ||||||||||||
1,210,059 | Hyflux Limited | 1,193,352 | ||||||||||||
1,686,174 | Manila Water Company | 1,264,631 | ||||||||||||
21,179 | Middlesex Water Company | 421,886 | ||||||||||||
36,487 | Pennon Group PLC | 357,667 | ||||||||||||
17,565 | SJW Corporation | 460,203 | ||||||||||||
66,852 | United Utilities PLC | 695,485 | ||||||||||||
Total Water Utilities | 31,323,795 | |||||||||||||
Wireless Telecommunication Services – 3.2% | ||||||||||||||
155,971 | Crown Castle International Corporation, (2) | 11,290,741 | ||||||||||||
83,896 | SBA Communications Corporation, (2) | 6,218,372 | ||||||||||||
Total Wireless Telecommunication Services | 17,509,113 | |||||||||||||
Total Common Stocks (cost $503,061,683) | 516,877,190 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 4.0% | ||||||||||||||
Specialized – 4.0% | ||||||||||||||
252,344 | American Tower REIT Inc. | $ | 18,464,011 | |||||||||||
3,208 | Corrections Corporation of America | 108,655 | ||||||||||||
42,584 | CyrusOne Inc. | 883,192 | ||||||||||||
1,504,157 | Parkway Life Real Estate | 2,800,639 | ||||||||||||
Total Real Estate Investment Trust Common Stocks (cost $18,889,199) | 22,256,497 |
20 | Nuveen Investments |
Shares | Description (1), (4) | Value | ||||||||||||
INVESTMENT COMPANIES – 0.3% | ||||||||||||||
Gas Utilities – 0.3% | ||||||||||||||
5,118,645 | Cityspring Infrastructure Trust | $ | 1,898,038 | |||||||||||
Total Investment Companies (cost $1,840,269) | 1,898,038 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 2.6% | ||||||||||||||
Money Market Funds – 2.6% | ||||||||||||||
14,380,131 | State Street Institutional Liquid Reserve Fund, 0.009%, (3) | $ | 14,380,131 | |||||||||||
Total Short-Term Investments (cost $14,380,131) | 14,380,131 | |||||||||||||
Total Investments (cost $538,171,282) – 99.9% | 555,411,856 | |||||||||||||
Other Assets Less Liabilities – 0.1% | 298,188 | |||||||||||||
Net Assets – 100% | $ | 555,710,044 |
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. | |||
(4) | A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. | |||
ADR | American Depositary Receipt. | |||
BDR | Brazilian Depositary Receipt. | |||
GDR | Global Depositary Receipt. | |||
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
Nuveen Investments | 21 |
Portfolio of Investments (Unaudited)
Nuveen Real Asset Income Fund
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
COMMON STOCKS – 21.3% | ||||||||||||||
Air Freight & Logistics – 1.5% | ||||||||||||||
32,984 | Oesterreichische Post AG | $ | 1,288,001 | |||||||||||
384,540 | Singapore Post Limited | 394,400 | ||||||||||||
Total Air Freight & Logistics | 1,682,401 | |||||||||||||
Commercial Services & Supplies – 0.1% | ||||||||||||||
178,542 | K-Green Trust | 147,200 | ||||||||||||
Construction & Engineering – 0.3% | ||||||||||||||
20,992 | Ferrovial SA | 335,540 | ||||||||||||
Electric Utilities – 5.6% | ||||||||||||||
16,855 | Alupar Investimento SA, (2) | 143,143 | ||||||||||||
25,617 | Brookfield Infrastructure Partners LP | 935,533 | ||||||||||||
2,165 | Duke Energy Corporation | 146,138 | ||||||||||||
315 | Hafslund ASA, Class B Shares | 2,437 | ||||||||||||
4,894 | Infratil Limited | 8,420 | ||||||||||||
49,497 | Pepco Holdings, Inc. | 997,860 | ||||||||||||
58,241 | Scottish and Southern Energy PLC | 1,349,106 | ||||||||||||
784,558 | Spark Infrastructure Group | 1,244,897 | ||||||||||||
197,213 | Terna-Rete Elettrica Nazionale SpA | 819,389 | ||||||||||||
16,657 | Unitil Corp. | 481,054 | ||||||||||||
Total Electric Utilities | 6,127,977 | |||||||||||||
Gas Utilities – 1.4% | ||||||||||||||
74,180 | Envestra Limited | 67,502 | ||||||||||||
318,249 | Snam Rete Gas S.p.A | 1,449,863 | ||||||||||||
Total Gas Utilities | 1,517,365 | |||||||||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||||||||
1,762,811 | Langham Hospitality Investments Limited, (2) | 915,947 | ||||||||||||
Independent Power Producers & Energy Traders – 0.7% | ||||||||||||||
29,851 | Brookfield Renewable Energy Partners LP | 824,543 | ||||||||||||
Multi-Utilities – 6.0% | ||||||||||||||
1,027,549 | Duet Group | 1,888,893 | ||||||||||||
68,026 | National Grid PLC, Sponsored ADR | 3,855,031 | ||||||||||||
134,893 | Redes Energeticas Nacionais SA | 386,808 | ||||||||||||
212,587 | Vector Limited | 441,513 | ||||||||||||
Total Multi-Utilities | 6,572,245 | |||||||||||||
Oil, Gas & Consumable Fuels – 1.4% | ||||||||||||||
20,223 | Boardwalk Pipeline Partners, LP | 610,735 | ||||||||||||
15,525 | Holly Energy Partneres LP | 590,571 | ||||||||||||
3,860 | Kinder Morgan Energy Partners LP | 329,644 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 1,530,950 | |||||||||||||
Transportation – 3.3% | ||||||||||||||
47,059 | Atlantia SpA | 767,513 | ||||||||||||
2,001,004 | Hutchison Port Holdings Trust | 1,470,738 | ||||||||||||
100 | Kobenhavns Lufthavne | 41,884 | ||||||||||||
2,189 | Macquarie Infrastructure Company LLC | 117,004 | ||||||||||||
23 | Societa Iniziative Autostradali e Servizi SpA | 188 |
22 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Transportation (continued) | ||||||||||||||
387,338 | Sydney Airport | $ | 1,197,336 | |||||||||||
Total Transportation | 3,594,663 | |||||||||||||
Water Utilities – 0.2% | ||||||||||||||
17,041 | United Utilities PLC | 177,284 | ||||||||||||
Total Common Stocks (cost $24,625,027) | 23,426,115 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 19.5% | ||||||||||||||
Diversified – 2.1% | ||||||||||||||
25,728 | Artis Real Estate Investment Trust | $ | 368,906 | |||||||||||
17,101 | Investors Real Estate Trust | 147,069 | ||||||||||||
9,049 | Lexington Corporate Properties Trust | 105,692 | ||||||||||||
20,358 | Liberty Property Trust | 752,432 | ||||||||||||
280,907 | Stockland | 894,027 | ||||||||||||
Total Diversified | 2,268,126 | |||||||||||||
Industrial – 2.1% | ||||||||||||||
308,586 | Ascendas Real Estate Investment Trust | 542,917 | ||||||||||||
366,439 | Mapletree Logistics Trust | 318,014 | ||||||||||||
83,795 | Monmouth Real Estate Investment Corporation | 827,057 | ||||||||||||
29,329 | STAG Industrial Inc. | 585,114 | ||||||||||||
Total Industrial | 2,273,102 | |||||||||||||
Mortgage – 4.7% | ||||||||||||||
49,076 | Apollo Commercial Real Estate Finance, Inc. | 779,327 | ||||||||||||
48,741 | Blackstone Mortgage Trust Inc, Class A | 1,203,903 | ||||||||||||
47,355 | Colony Financial Inc. | 941,891 | ||||||||||||
93,265 | Starwood Property Trust Inc. | 2,308,308 | ||||||||||||
Total Mortgage | 5,233,429 | |||||||||||||
Office – 1.0% | ||||||||||||||
56,283 | Franklin Street Properties Corporation | 742,936 | ||||||||||||
11,186 | Highwoods Properties, Inc. | 398,333 | ||||||||||||
Total Office | 1,141,269 | |||||||||||||
Residential – 0.7% | ||||||||||||||
71,013 | Campus Crest Communities Inc. | 819,490 | ||||||||||||
116 | Trade Street Residential Inc. | 1,021 | ||||||||||||
Total Residential | 820,511 | |||||||||||||
Retail – 5.6% | ||||||||||||||
13,238 | AmREIT Inc., Class B | 256,023 | ||||||||||||
120,032 | CapitaMall Trust | 188,926 | ||||||||||||
59,414 | Inland Real Estate Corporation | 607,211 | ||||||||||||
30,389 | Kite Realty Group Trust | 782,517 | ||||||||||||
37,520 | National Retail Properties, Inc. | 1,290,688 | ||||||||||||
14,164 | Penn Real Estate Investment Trust | 362,740 | ||||||||||||
44,500 | Urstadt Biddle Properties Inc. | 897,565 | ||||||||||||
618,075 | Westfield Realty Trust | 1,752,313 | ||||||||||||
Total Retail | 6,137,983 |
Nuveen Investments | 23 |
Portfolio of Investments (Unaudited)
Nuveen Real Asset Income Fund (continued)
June 30, 2013
Shares | Description (1) | Value | ||||||||||||||||
Specialized – 3.3% | ||||||||||||||||||
28,344 | Aviv REIT Inc. | $ | 716,820 | |||||||||||||||
935 | Health Care Property Investors Inc. | 42,486 | ||||||||||||||||
14,785 | Healthcare Trust of America Inc., Class A | 166,036 | ||||||||||||||||
4,723 | LTC Properties Inc. | 184,433 | ||||||||||||||||
269,548 | Parkway Life Real Estate Investment Trust | 501,880 | ||||||||||||||||
34,140 | Pebblebrook Hotel Trust | 888,664 | ||||||||||||||||
32,704 | Summit Hotel Properties Inc. | 309,053 | ||||||||||||||||
12,157 | Summit Hotel Properties Inc. | 322,161 | ||||||||||||||||
7,447 | Sunstone Hotel Investors Inc. | 195,484 | ||||||||||||||||
6,939 | Universal Health Realty Income Trust | 299,278 | ||||||||||||||||
Total Specialized | 3,626,295 | |||||||||||||||||
Total Real Estate Investment Trust Common Stocks (cost $22,105,358) | 21,500,715 | |||||||||||||||||
Shares | Description (1) | Coupon | Ratings (3) | Value | ||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 2.3% | ||||||||||||||||||
Electric Utilities – 0.7% | ||||||||||||||||||
6,704 | NextEra Energy Inc. | 5.889% | BBB | $ | 372,340 | |||||||||||||
7,826 | PPL Corporation | 8.750% | N/R | 422,761 | ||||||||||||||
Total Electric Utilities | 795,101 | |||||||||||||||||
Multi-Utilities – 0.5% | ||||||||||||||||||
10,030 | Dominion Resources Inc. | 6.125% | BBB | 503,506 | ||||||||||||||
Office – 0.8% | ||||||||||||||||||
33,495 | Alexandria Real Estate Equities Inc. | 7.000% | N/R | 867,186 | ||||||||||||||
Retail – 0.3% | ||||||||||||||||||
5,480 | Ramco-Gershenson Properties Trust | 7.250% | N/R | 322,333 | ||||||||||||||
Total Convertible Preferred Securities (cost $2,437,550) | 2,488,126 | |||||||||||||||||
Shares | Description (1) | Coupon | Ratings (3) | Value | ||||||||||||||
$25 PAR (OR SIMILAR) RETAIL STRUCTURES – 22.5% | ||||||||||||||||||
Diversified – 0.8% | ||||||||||||||||||
6,025 | Cousins Property Inc., (4) | 7.500% | N/R | $ | 151,529 | |||||||||||||
25,878 | Investors Real Estate Trust | 7.950% | N/R | 679,298 | ||||||||||||||
Total Diversified | 830,827 | |||||||||||||||||
Electric Utilities – 2.0% | ||||||||||||||||||
27,930 | NextEra Energy Inc. | 5.000% | BBB | 630,659 | ||||||||||||||
46,994 | PPL Capital Funding, Inc. | 5.900% | BB+ | 1,131,616 | ||||||||||||||
20,454 | SCE Trust II | 5.100% | BBB+ | 460,215 | ||||||||||||||
Total Electric Utilities | 2,222,490 | |||||||||||||||||
Industrial – 0.6% | ||||||||||||||||||
12,852 | Monmouth Real Estate Investment Corp | 7.875% | N/R | 331,710 | ||||||||||||||
15,588 | STAG Industrial Inc. | 6.625% | BB | 371,618 | ||||||||||||||
Total Industrial | 703,328 | |||||||||||||||||
Multi-Utilities – 0.1% | ||||||||||||||||||
3,383 | DTE Energy Company | 6.500% | Baa2 | 87,992 |
24 | Nuveen Investments |
Shares | Description (1) | Coupon | Ratings (3) | Value | ||||||||||||||
Oil, Gas & Consumable Fuels – 1.1% | ||||||||||||||||||
40,386 | Nustar Logistics Limited Partnership | 7.625% | Ba2 | $ | 1,058,113 | |||||||||||||
4,196 | Teekay Offshore Partners LP | 7.250% | N/R | 106,159 | ||||||||||||||
Total Oil, Gas & Consumable Fuels | 1,164,272 | |||||||||||||||||
Office – 0.7% | ||||||||||||||||||
604 | Digital Realty Trust Inc. | 5.875% | Baa3 | 13,590 | ||||||||||||||
146 | Kilroy Realty Corporation | 6.875% | Ba1 | 3,691 | ||||||||||||||
29,805 | SL Green Realty Corporation | 6.500% | Ba2 | 734,991 | ||||||||||||||
Total Office | 752,272 | |||||||||||||||||
Residential – 1.0% | ||||||||||||||||||
549 | Apartment Investment & Management Company | 7.000% | BB | 14,219 | ||||||||||||||
30,835 | Equity Lifestyle Properties Inc. | 6.750% | N/R | 795,235 | ||||||||||||||
127 | Essex Property Trust | 7.125% | BBB– | 3,353 | ||||||||||||||
3,900 | Post Properties, Inc., Series A, (4) | 8.500% | Baa3 | 244,140 | ||||||||||||||
Total Residential | 1,056,947 | |||||||||||||||||
Retail – 9.3% | ||||||||||||||||||
14,741 | CBL & Associates Properties Inc. | 7.375% | N/R | 372,947 | ||||||||||||||
24,542 | Cedar Shopping Centers Inc., Series A | 7.250% | N/R | 630,729 | ||||||||||||||
49,902 | DDR Corporation | 6.500% | Ba1 | 1,204,634 | ||||||||||||||
31,115 | DDR Corporation | 6.250% | Ba1 | 737,737 | ||||||||||||||
9,637 | Excel Trust Inc. | 8.125% | N/R | 245,936 | ||||||||||||||
63,281 | General Growth Properties | 6.375% | B | 1,466,854 | ||||||||||||||
43,963 | Glimcher Realty Trust, (4) | 7.500% | B1 | 1,103,471 | ||||||||||||||
42,040 | Glimcher Realty Trust | 6.875% | B1 | 1,035,866 | ||||||||||||||
43,654 | Retail Properties of America | 7.000% | N/R | 1,088,294 | ||||||||||||||
34,869 | Saul Centers, Inc. | 6.875% | N/R | 889,160 | ||||||||||||||
30,532 | Taubman Centers Incorporated, Series K | 6.250% | N/R | 741,317 | ||||||||||||||
13,857 | Taubman Centers Incorporated., Series J | 6.500% | N/R | 344,069 | ||||||||||||||
15,193 | Urstadt Biddle Properties | 7.125% | N/R | 393,347 | ||||||||||||||
Total Retail | 10,254,361 | |||||||||||||||||
Specialized – 5.4% | ||||||||||||||||||
8,341 | Health Care REIT, Inc. | 6.500% | Baa3 | 212,195 | ||||||||||||||
18,101 | Hersha Hospitality Trust, (4) | 8.000% | N/R | 462,662 | ||||||||||||||
38,962 | Hersha Hospitality Trust | 6.875% | N/R | 945,608 | ||||||||||||||
2,236 | Pebblebrook Hotel Trust | 7.875% | N/R | 57,778 | ||||||||||||||
32,106 | Pebblebrook Hotel Trust | 6.500% | N/R | 775,360 | ||||||||||||||
28,775 | Sabra Health Care Real Estate Investement Trust | 7.125% | B3 | 724,842 | ||||||||||||||
46,082 | Summit Hotel Properties Inc. | 7.875% | N/R | 1,193,524 | ||||||||||||||
64,535 | Summit Hotel Properties Inc. | 7.125% | N/R | 1,564,973 | ||||||||||||||
Total Specialized | 5,936,942 | |||||||||||||||||
Real Estate Management & Development – 0.9% | ||||||||||||||||||
39,176 | Forest City Enterprises Inc. | 7.375% | BB– | 1,003,689 | ||||||||||||||
Specialty Retail – 0.6% | ||||||||||||||||||
27,127 | TravelCenters of America LLC | 8.250% | N/R | 710,727 | ||||||||||||||
Total $25 Par (or similar) Retail Structures (cost $24,978,815) | 24,723,847 |
Nuveen Investments | 25 |
Portfolio of Investments (Unaudited)
Nuveen Real Asset Income Fund (continued)
June 30, 2013
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||
CONVERTIBLE BONDS – 1.5% | ||||||||||||||||||||
Oil, Gas & Consumable Fuels – 1.1% | ||||||||||||||||||||
$ | 1,260 | DCP Midstream LLC | 5.850% | 5/21/43 | Baa3 | $ | 1,209,600 | |||||||||||||
Real Estate Investment Trust – 0.4% | ||||||||||||||||||||
440 | Starwood Property Trust | 4.000% | 1/15/19 | BB– | 451,000 | |||||||||||||||
$ | 1,700 | Total Convertible Bonds (cost $1,697,600) | 1,660,600 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||
CORPORATE BONDS – 26.3% | ||||||||||||||||||||
Building Products – 0.6% | ||||||||||||||||||||
$ | 545 | Associated Asphalt Partners Limited Liability Corporation, 144A | 8.500% | 2/15/18 | B | $ | 547,725 | |||||||||||||
100 | Corporativo Javer S.A. de C.V, 144A | 9.875% | 4/06/21 | B+ | 91,000 | |||||||||||||||
645 | Total Building Products | 638,725 | ||||||||||||||||||
Commercial Services & Supplies – 1.1% | ||||||||||||||||||||
280 | ADS Waste Holdings Inc., 144A | 8.250% | 10/01/20 | CCC+ | 285,600 | |||||||||||||||
450 | Casella Waste Systems Inc. | 7.750% | 2/15/19 | Caa1 | 427,500 | |||||||||||||||
500 | Covanta Energy Corporation, Synthetic Letter of Credit | 6.375% | 10/01/22 | BB | 505,300 | |||||||||||||||
1,230 | Total Commercial Services & Supplies | 1,218,400 | ||||||||||||||||||
Communications Equipment – 0.2% | ||||||||||||||||||||
250 | Goodman Networks Inc., 144A | 12.125% | 7/01/18 | B | 265,000 | |||||||||||||||
Construction & Engineering – 2.5% | ||||||||||||||||||||
2,903 | PHBS Limited | 6.625% | N/A (5) | N/R | 2,722,142 | |||||||||||||||
Diversified Financial Services – 2.2% | ||||||||||||||||||||
650 | Jefferies Loancore Finance, 144A | 6.875% | 6/01/20 | B2 | 630,500 | |||||||||||||||
1,620 | Royal Capital BV | 8.375% | N/A (5) | N/R | 1,634,256 | |||||||||||||||
95 | SinOceanic II ASA, 144A | 10.000% | 2/17/15 | N/R | 97,385 | |||||||||||||||
2,365 | Total Diversified Financial Services | 2,362,141 | ||||||||||||||||||
Diversified Telecommunication Services – 1.3% | ||||||||||||||||||||
650 | CyrusOne LP Finance, 144A | 6.375% | 11/15/22 | B+ | 666,250 | |||||||||||||||
700 | IntelSat Limited | 8.125% | 6/01/23 | CCC+ | 722,750 | |||||||||||||||
1,350 | Total Diversified Telecommunication Services | 1,389,000 | ||||||||||||||||||
Electric Utilities – 2.5% | ||||||||||||||||||||
304 | APT Pipelines Limited, (2) | 7.550% | 9/30/72 | N/R | 291,904 | |||||||||||||||
1,018 | Electricite de France, 144A | 5.250% | N/A (5) | A3 | 973,208 | |||||||||||||||
600 | Intergen NV, 144A | 7.000% | 6/30/23 | B1 | 585,000 | |||||||||||||||
400 | Star Energy Geothermal Wayang Windu Limited, 144A | 6.125% | 3/27/20 | BB– | 381,000 | |||||||||||||||
390 | Tennet Holding BV | 6.655% | N/A (5) | BBB | 553,328 | |||||||||||||||
2,712 | Total Electric Utilities | 2,784,440 | ||||||||||||||||||
Energy Equipment & Services – 1.5% | ||||||||||||||||||||
1,250 | Origin Energy Finance Limited | 7.875% | 6/16/71 | BB+ | 1,678,306 | |||||||||||||||
Gas Utilities – 1.0% | ||||||||||||||||||||
500 | AmeriGas Finance LLC | 7.000% | 5/20/22 | Ba2 | 511,250 | |||||||||||||||
600 | LBC Tank Terminals Holdings Netherlands BV, 144A | 6.875% | 5/15/23 | B | 601,500 | |||||||||||||||
1,100 | Total Gas Utilities | 1,112,750 |
26 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||
Health Care Providers & Services – 2.9% | ||||||||||||||||||||
$ | 600 | HealthSouth Corporation | 5.750% | 11/01/24 | BB– | $ | 583,500 | |||||||||||||
500 | Iasis Healthcare Capital Corporation | 8.375% | 5/15/19 | CCC+ | 504,688 | |||||||||||||||
600 | Kindred Healthcare Inc. | 8.250% | 6/01/19 | B– | 615,000 | |||||||||||||||
500 | National Mentor Holdings, 144A | 12.500% | 2/15/18 | CCC+ | 535,000 | |||||||||||||||
550 | Select Medical Corporation, 144A | 6.375% | 6/01/21 | B– | 522,500 | |||||||||||||||
425 | Tenet Healthcare Corporation | 6.750% | 2/01/20 | B3 | 412,250 | |||||||||||||||
3,175 | Total Health Care Providers & Services | 3,172,938 | ||||||||||||||||||
Independent Power Producers & Energy Traders – 1.0% | ||||||||||||||||||||
400 | Calpine Corporation, 144A | 7.875% | 1/15/23 | BB+ | 430,000 | |||||||||||||||
600 | Mirant Americas Generation LLC | 8.500% | 10/01/21 | BB– | 645,000 | |||||||||||||||
1,000 | Total Independent Power Producers & Energy Traders | 1,075,000 | ||||||||||||||||||
Industrial Conglomerates – 1.5% | ||||||||||||||||||||
1,750 | OAS Financial Limited, 144A | 8.875% | N/A (5) | BB– | 1,671,250 | |||||||||||||||
Marine – 0.5% | ||||||||||||||||||||
550 | Navios Maritime Acquisition Corporation | 8.625% | 11/01/17 | B | 562,375 | |||||||||||||||
Metals & Mining – 0.4% | ||||||||||||||||||||
550 | WPE International Cooperatief U.A, 144A | 10.375% | 9/30/20 | B+ | 429,000 | |||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
300 | RWE AG | 7.000% | N/A (5) | BBB | 484,007 | |||||||||||||||
Oil, Gas & Consumable Fuels – 4.6% | ||||||||||||||||||||
400 | Atlas Pipeline LP Finance, 144A | 5.875% | 8/01/23 | B+ | 380,000 | |||||||||||||||
600 | Calumet Specialty Products, 144A | 9.625% | 8/01/20 | B | 652,500 | |||||||||||||||
500 | Cheniere Energy Inc., 144A | 5.625% | 2/01/21 | BB+ | 485,000 | |||||||||||||||
600 | Crosstex Energy Finance | 7.125% | 6/01/22 | B+ | 606,000 | |||||||||||||||
450 | Gibson Energy, 144A | 6.750% | 7/15/21 | Baa3 | 448,875 | |||||||||||||||
560 | Martin Mid-Stream Partners LP Finance, 144A | 7.250% | 2/15/21 | B– | 562,800 | |||||||||||||||
500 | Northern Tier Energy LLC, 144A | 7.125% | 11/15/20 | BB– | 505,000 | |||||||||||||||
540 | PBF Holding Company LLC | 8.250% | 2/15/20 | BB+ | 565,650 | |||||||||||||||
335 | Summit Midstream Holdings LLC Finance, 144A | 7.500% | 7/01/21 | B3 | 340,025 | |||||||||||||||
500 | Western Refining Inc., 144A | 6.250% | 4/01/21 | BB– | 488,750 | |||||||||||||||
4,985 | Total Oil, Gas & Consumable Fuels | 5,034,600 | ||||||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||||||
628 | Inversiones Alsacia SA, 144A | 8.000% | 8/18/18 | BB | 530,776 | |||||||||||||||
500 | Watco Companies LLC Finance, 144A | 6.375% | 4/01/23 | B3 | 497,500 | |||||||||||||||
1,128 | Total Road & Rail | 1,028,276 | ||||||||||||||||||
Transportation – 0.9% | ||||||||||||||||||||
750 | Eurogate GmbH | 6.750% | N/A (5) | N/R | 934,743 | |||||||||||||||
Wireless Telecommunication Services – 0.3% | ||||||||||||||||||||
350 | GNET Escrow Corporation, 144A | 12.125% | 7/01/18 | B3 | 367,500 | |||||||||||||||
$ | 28,343 | Total Corporate Bonds (cost $29,849,595) | 28,930,593 | |||||||||||||||||
Shares | Description (1), (6) | Value | ||||||||||||||||||
INVESTMENT COMPANIES – 1.4% | ||||||||||||||||||||
Gas Utilities – 0.5% | ||||||||||||||||||||
1,522,200 | Cityspring Infrastructure Trust | $ | 564,445 |
Nuveen Investments | 27 |
Portfolio of Investments (Unaudited)
Nuveen Real Asset Income Fund (continued)
June 30, 2013
Shares | Description (1) | Value | ||||||||||||||||
Real Estate Management & Development – 0.9% | ||||||||||||||||||
643,845 | Starwood European Real Estate Finance Limited | $ | 1,003,743 | |||||||||||||||
Total Investment Companies (cost $1,576,073) | 1,568,188 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||
SHORT-TERM INVESTMENTS – 2.7% | ||||||||||||||||||
$ | 2,960 | Repurchase agreement with State Street Bank, dated 6/28/13, repurchase price $2,959,718, collateralized by $3,070,000 U.S. Treasury Notes, 0.625%, due 5/31/17, value $3,021,101 | 0.010% | 7/01/13 | $ | 2,959,716 | ||||||||||||
Total Short-Term Investments (cost $2,959,716) | 2,959,716 | |||||||||||||||||
Total Investments (cost $110,229,734) – 97.5% | 107,257,900 | |||||||||||||||||
Other Assets Less Liabilities – 2.5% | 2,785,106 | |||||||||||||||||
Net Assets – 100% | $ | 110,043,006 |
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) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
(4) | For fair value measurement disclosure purposes, $25 Par (or similar) Retail Structures classified as Level 2. See Notes to Financial Statements, Footnote 2 – Investment Valuation and Fair Value Measurements for more information. | |||
(5) | Perpetual security. Maturity date is not applicable. | |||
(6) | A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. | |||
ADR | American Depositary Receipt. | |||
N/A | Not applicable. | |||
N/R | Not rated. | |||
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. | |||
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
28 | Nuveen Investments |
Portfolio of Investments (Unaudited)
Nuveen Real Estate Securities Fund
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
COMMON STOCKS – 1.4% | ||||||||||||||
Capital Markets – 0.0% | ||||||||||||||
60,447 | HFF Inc. | $ | 1,074,143 | |||||||||||
Commercial Services & Supplies – 0.2% | ||||||||||||||
405,379 | Standard Parking Corporation, (2) | 8,699,433 | ||||||||||||
Health Care Providers & Services – 0.2% | ||||||||||||||
415,875 | Capital Senior Living Corporation, (2) | 9,939,413 | ||||||||||||
Hotels, Restaurants & Leisure – 0.2% | ||||||||||||||
20,148,570 | Langham Hospitality Investments Limited, (2) | 10,469,082 | ||||||||||||
Real Estate Management & Development – 0.8% | ||||||||||||||
3,013 | Forest City Enterprises, Inc., (2) | 53,963 | ||||||||||||
16,259,880 | Global Logistic Properties Limited | 35,277,846 | ||||||||||||
Total Real Estate Management & Development | 35,331,809 | |||||||||||||
Total Common Stocks (cost $59,081,495) | 65,513,880 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 97.6% | ||||||||||||||
Diversified – 5.5% | ||||||||||||||
174,679 | American Assets Trust Inc | $ | 5,390,594 | |||||||||||
3,541,378 | Cousins Properties, Inc., (3) | 35,767,918 | ||||||||||||
974,406 | First Potomac Realty Trust | 12,725,742 | ||||||||||||
262,377 | Investors Real Estate Trust, (3) | 2,256,442 | ||||||||||||
605,073 | Lexington Corporate Properties Trust | 7,067,253 | ||||||||||||
1,425,188 | Liberty Property Trust | 52,674,948 | ||||||||||||
597,701 | PS Business Parks Inc. | 43,136,081 | ||||||||||||
813,779 | Vornado Realty Trust | 67,421,590 | ||||||||||||
865,098 | Washington Real Estate Investment Trust, (3) | 23,279,787 | ||||||||||||
Total Diversified | 249,720,355 | |||||||||||||
Industrial – 6.5% | ||||||||||||||
1,822,527 | Ascendas Real Estate Investment Trust | 3,206,497 | ||||||||||||
7,488,010 | DCT Industrial Trust Inc. | 53,539,272 | ||||||||||||
122,919 | EastGroup Properties Inc., (3) | 6,916,652 | ||||||||||||
1,212,414 | First Industrial Realty Trust, Inc. | 18,392,320 | ||||||||||||
4,988,807 | Mapletree Logistics Trust | 4,329,537 | ||||||||||||
5,175,961 | Prologis Inc. | 195,237,249 | ||||||||||||
100,896 | STAG Industrial Inc. | 2,012,875 | ||||||||||||
646,955 | Terreno Realty Corporation | 11,988,076 | ||||||||||||
Total Industrial | 295,622,478 | |||||||||||||
Mortgage – 0.6% | ||||||||||||||
362,379 | Blackstone Mortgage Trust Inc, Class A, (3) | 8,950,761 | ||||||||||||
34,331 | Newcastle Investment Corporation, (4) | 16,136 | ||||||||||||
770,993 | Starwood Property Trust Inc. | 19,082,077 | ||||||||||||
Total Mortgage | 28,048,974 | |||||||||||||
Office – 14.8% | ||||||||||||||
1,297,683 | Alexandria Real Estate Equities Inc. | 85,283,727 | ||||||||||||
3,630,179 | BioMed Realty Trust Inc. | 73,438,521 |
Nuveen Investments | 29 |
Portfolio of Investments (Unaudited)
Nuveen Real Estate Securities Fund (continued)
June 30, 2013
Shares | Description (1) | Value | ||||||||||||
Office (continued) | ||||||||||||||
1,848,042 | Boston Properties, Inc. | $ | 194,912,990 | |||||||||||
193,967 | Brandywine Realty Trust | 2,622,434 | ||||||||||||
311,708 | Corporate Office Properties | 7,948,554 | ||||||||||||
178,332 | CyrusOne Inc. | 3,698,606 | ||||||||||||
1,274,148 | Digital Realty Trust Inc., (3) | 77,723,028 | ||||||||||||
1,194,614 | Dupont Fabros Technology Inc. | 28,849,928 | ||||||||||||
1,283,437 | Franklin Street Properties Corporation | 16,941,368 | ||||||||||||
259,150 | Highwoods Properties, Inc. | 9,228,332 | ||||||||||||
829,875 | Hudson Pacific Properties Inc. | 17,659,740 | ||||||||||||
855,831 | Kilroy Realty Corporation | 45,367,601 | ||||||||||||
210,579 | Parkway Properties Inc. | 3,529,304 | ||||||||||||
1,925,144 | Piedmont Office Realty Trust, (3) | 34,421,575 | ||||||||||||
849,941 | SL Green Realty Corporation | 74,956,297 | ||||||||||||
Total Office | 676,582,005 | |||||||||||||
Residential – 15.9% | ||||||||||||||
2,443,469 | American Campus Communities Inc., (3) | 99,351,450 | ||||||||||||
163,369 | Apartment Investment & Management Company, Class A | 4,907,605 | ||||||||||||
33,529 | Associated Estates Realty Corp., (3) | 539,146 | ||||||||||||
963,841 | AvalonBay Communities, Inc. | 130,031,789 | ||||||||||||
688,397 | BRE Properties, Inc. | 34,433,618 | ||||||||||||
591,803 | Camden Property Trust | 40,917,259 | ||||||||||||
1,053,398 | Campus Crest Communities Inc. | 12,156,213 | ||||||||||||
610,471 | Colonial Properties Trust | 14,724,561 | ||||||||||||
1,113,385 | Education Realty Trust Inc. | 11,389,929 | ||||||||||||
88,812 | Equity Lifestyles Properties Inc. | 6,979,735 | ||||||||||||
2,608,764 | Equity Residential, (3) | 151,464,838 | ||||||||||||
165,357 | Essex Property Trust Inc. | 26,278,534 | ||||||||||||
277,233 | Home Properties New York, Inc., (3) | 18,122,721 | ||||||||||||
705,632 | Mid-America Apartment Communities, (3) | 47,820,681 | ||||||||||||
1,735,587 | Post Properties, Inc. | 85,894,201 | ||||||||||||
1,731,719 | UDR Inc. | 44,141,517 | ||||||||||||
Total Residential | 729,153,797 | |||||||||||||
Retail – 28.8% | ||||||||||||||
1,954,782 | Acadia Realty Trust | 48,263,568 | ||||||||||||
4,013 | Alexander’s Inc. | 1,178,658 | ||||||||||||
83,202 | AmREIT Inc., Class B Shares | 1,609,127 | ||||||||||||
1,597,906 | CapitaMall Trust | 2,515,047 | ||||||||||||
1,478,603 | CBL & Associates Properties Inc. | 31,671,676 | ||||||||||||
88,677 | Cedar Shopping Centers Inc. | 459,347 | ||||||||||||
8,685,960 | Developers Diversified Realty Corporation, (3) | 144,621,234 | ||||||||||||
638,546 | Equity One Inc., (3) | 14,450,296 | ||||||||||||
895,217 | Federal Realty Investment Trust, (3) | 92,816,099 | ||||||||||||
2,610,194 | General Growth Properties Inc. | 51,864,555 | ||||||||||||
2,776,961 | Glimcher Realty Trust | 30,324,414 | ||||||||||||
1,005,737 | Kimco Realty Corporation | 21,552,944 |
30 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Retail (continued) | ||||||||||||||
6,032,887 | Kite Realty Group Trust | $ | 36,378,309 | |||||||||||
1,190,702 | Macerich Company, (3) | 72,597,101 | ||||||||||||
2,353,628 | National Retail Properties, Inc., (3) | 80,964,803 | ||||||||||||
908,887 | Ramco-Gershenson Properties Trust | 14,115,015 | ||||||||||||
429,764 | Regency Centers Corporation | 21,836,309 | ||||||||||||
125,438 | Retail Opportunity Investments Corporation | 1,743,588 | ||||||||||||
422,538 | Retail Properties of America Inc, | 6,033,843 | ||||||||||||
131,087 | Saul Centers Inc., (3) | 5,828,128 | ||||||||||||
3,108,238 | Simon Property Group, Inc. | 490,852,945 | ||||||||||||
1,327,788 | Tanger Factory Outlet Centers, (3) | 44,427,786 | ||||||||||||
765,146 | Taubman Centers Inc. | 57,500,722 | ||||||||||||
1,179,768 | Urstadt Biddle Properties Inc. | 23,795,921 | ||||||||||||
19,132 | Weingarten Realty Trust | 588,692 | ||||||||||||
1,190,385 | Westfield Group | 12,454,391 | ||||||||||||
4,474,283 | Westfield Realty Trust | 12,685,108 | ||||||||||||
Total Retail | 1,323,129,626 | |||||||||||||
Specialized – 25.5% | ||||||||||||||
499,308 | American Tower REIT Inc. | 36,534,366 | ||||||||||||
206,746 | Aviv REIT Inc. | 5,228,606 | ||||||||||||
952,824 | Chesapeake Lodging Trust | 19,809,211 | ||||||||||||
75,610 | Corrections Corporation of America | 2,560,911 | ||||||||||||
38,336 | CubeSmart | 612,609 | ||||||||||||
1,100,963 | Extra Space Storage Inc., (3) | 46,163,379 | ||||||||||||
4,543,770 | Health Care Property Investors Inc. | 206,468,909 | ||||||||||||
1,301,692 | Health Care REIT, Inc. | 87,252,415 | ||||||||||||
916,805 | Healthcare Realty Trust, Inc. | 23,378,528 | ||||||||||||
290,843 | Healthcare Trust of America Inc. | 3,266,167 | ||||||||||||
3,858,890 | Hersha Hospitality Trust | 21,764,140 | ||||||||||||
3,321,509 | Host Hotels & Resorts Inc. | 56,033,857 | ||||||||||||
541,419 | LaSalle Hotel Properties | 13,373,049 | ||||||||||||
496,853 | LTC Properties Inc. | 19,402,110 | ||||||||||||
6,331,640 | Parkway Life Real Estate | 11,789,087 | ||||||||||||
261,506 | Pebblebrook Hotel Trust | 6,759,930 | ||||||||||||
1,686,284 | Public Storage, Inc. | 258,557,926 | ||||||||||||
2,250,535 | RLJ Lodging Trust | 50,614,532 | ||||||||||||
236,528 | Senior Housing Properties Trust, (3) | 6,133,171 | ||||||||||||
959,100 | Sovran Self Storage Inc. | 62,140,086 | ||||||||||||
4,743,546 | Summit Hotel Properties Inc. | 44,826,510 | ||||||||||||
2,583,237 | Sunstone Hotel Investors Inc., (2), (3) | 31,205,503 | ||||||||||||
99,923 | Universal Health Realty Income Trust | 4,309,679 | ||||||||||||
2,192,257 | Ventas Inc. | 152,274,171 | ||||||||||||
Total Specialized | 1,170,458,852 | |||||||||||||
Total Real Estate Investment Trust Common Stocks (cost $3,622,883,979) | 4,472,716,087 |
Nuveen Investments | 31 |
Portfolio of Investments (Unaudited)
Nuveen Real Estate Securities Fund (continued)
June 30, 2013
Shares | Description (1) | Coupon | Ratings (5) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL STRUCTURES – 0.1% |
| |||||||||||||||||||
Specialized – 0.1% | ||||||||||||||||||||
123,241 | Summit Hotel Properties Inc. | 7.875% | N/R | $ | 3,191,942 | |||||||||||||||
118,716 | Summit Hotel Properties Inc. | 9.250% | N/R | 3,145,974 | ||||||||||||||||
Total $25 Par (or similar) Retail Structures (cost $6,048,925) |
| 6,337,916 | ||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
CONVERTIBLE BONDS – 0.2% | ||||||||||||||||||||
Real Estate Management & Development – 0.2% | ||||||||||||||||||||
$ | 8,282 | Starwood Property Trust | 4.000% | 1/15/19 | BB– | $ | 8,489,050 | |||||||||||||
$ | 8,282 | Total Convertible Bonds (cost $8,282,000) | 8,489,050 | |||||||||||||||||
Shares | Description (1), (8) | Value | ||||||||||||||||||
INVESTMENT COMPANIES – 0.1% | ||||||||||||||||||||
Real Estate Management & Development – 0.1% |
| |||||||||||||||||||
2,982,455 | Starwood European Real Estate Finance Limited | $ | 4,649,596 | |||||||||||||||||
Total Investment Companies (cost $4,810,411) | 4,649,596 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 8.5% |
| |||||||||||||||||||
Money Market Funds – 8.5% | ||||||||||||||||||||
391,632,127 | Mount Vernon Securities Lending Prime Portfolio, 0.195% (6), (7) | $ | 391,632,127 | |||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $391,632,127) |
| 391,632,127 | ||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||||||||||||||
Money Market Funds – 0.5% | ||||||||||||||||||||
24,651,047 | First American Treasury Obligations Fund, Class Z, 0.000%, (6) | $ | 24,651,047 | |||||||||||||||||
Total Short-Term Investments (cost $24,651,047) | 24,651,047 | |||||||||||||||||||
Total Investments (cost $4,117,389,984) – 108.4% |
| 4,973,989,703 | ||||||||||||||||||
Other Assets Less Liabilities – (8.4)% | (386,106,207) | |||||||||||||||||||
Net Assets – 100% | $ | 4,587,883,496 |
32 | Nuveen Investments |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. | ||||
(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) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan as of the end the reporting period was $372,686,358. | |||
(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 2 – Investment Valuation and Fair Value Measurements for more information. | |||
(5) | Ratings: 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 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. | |||
(8) | A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. | |||
N/R | Not rated. | |||
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
Nuveen Investments | 33 |
Statement of Assets & Liabilities (Unaudited)
June 30, 2013
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Assets | ||||||||||||
Investments, at value (cost $538,171,282, $110,229,734 and $3,725,757,857, respectively) | $ | 555,411,856 | $ | 107,257,900 | $ | 4,582,357,576 | ||||||
Investment purchased with collateral from securities lending, at value (cost approximates value) | — | — | 391,632,127 | |||||||||
Cash | — | 44,983 | — | |||||||||
Cash denominated in foreign currencies (cost $185,547, $461,727 and $—, respectively) | 185,204 | 441,213 | — | |||||||||
Receivables: | ||||||||||||
Dividends | 2,523,142 | 782,227 | 13,141,827 | |||||||||
Due from broker | — | — | 42,197 | |||||||||
Interest | 585 | 507,203 | — | |||||||||
Investments sold | 12,757,415 | 3,544,886 | 22,198,329 | |||||||||
Reclaims | 181,270 | 26,982 | — | |||||||||
Shares sold | 1,668,739 | 2,167,269 | 9,253,771 | |||||||||
Other assets | 2,298 | 12 | 61,826 | |||||||||
Total assets | 572,730,509 | 114,772,675 | 5,018,687,653 | |||||||||
Liabilities | ||||||||||||
Cash overdraft | 4,599,465 | — | — | |||||||||
Payables: | ||||||||||||
Collateral from securities lending program | — | — | 391,632,127 | |||||||||
Dividends | — | 150,691 | 7,387,161 | |||||||||
Investments purchased | 11,266,584 | 3,533,214 | 19,682,957 | |||||||||
Shares redeemed | 589,022 | 922,896 | 6,629,050 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 273,948 | 53,081 | 3,123,738 | |||||||||
Directors fees | 4,711 | 371 | 82,980 | |||||||||
12b-1 distribution and service fees | 29,488 | 21,517 | 258,696 | |||||||||
Other | 257,247 | 47,899 | 2,007,448 | |||||||||
Total liabilities | 17,020,465 | 4,729,669 | 430,804,157 | |||||||||
Net assets | $ | 555,710,044 | $ | 110,043,006 | $ | 4,587,883,496 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 74,452,242 | $ | 43,237,143 | $ | 744,538,564 | ||||||
Shares outstanding | 7,481,453 | 1,924,336 | 34,096,067 | |||||||||
Net asset value per share | $ | 9.95 | $ | 22.47 | $ | 21.84 | ||||||
Offering price per share (net asset value per share plus maximum sales | $ | 10.56 | $ | 23.84 | $ | 23.17 | ||||||
Class B Shares | ||||||||||||
Net assets | N/A | N/A | $ | 1,695,998 | ||||||||
Shares outstanding | N/A | N/A | 79,500 | |||||||||
Net asset value and offering price per share | N/A | N/A | $ | 21.33 | ||||||||
Class C Shares | ||||||||||||
Net assets | $ | 17,414,361 | $ | 16,821,572 | $ | 82,363,624 | ||||||
Shares outstanding | 1,768,414 | 748,703 | 3,851,136 | |||||||||
Net asset value and offering price per share | $ | 9.85 | $ | 22.47 | $ | 21.39 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 124,635 | N/A | $ | 73,344,861 | |||||||
Shares outstanding | 12,387 | N/A | 3,316,606 | |||||||||
Net asset value and offering price per share | $ | 10.06 | N/A | $ | 22.11 | |||||||
Class R6 Shares(1) | ||||||||||||
Net assets | N/A | N/A | $ | 24,694,359 | ||||||||
Shares outstanding | N/A | N/A | 1,117,737 | |||||||||
Net asset value and offering price per share | N/A | N/A | $ | 22.09 | ||||||||
Class I Shares | ||||||||||||
Net assets | $ | 463,718,806 | $ | 49,984,291 | $ | 3,661,246,090 | ||||||
Shares outstanding | 46,471,313 | 2,224,298 | 165,763,486 | |||||||||
Net asset value and offering price per share | $ | 9.98 | $ | 22.47 | $ | 22.09 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 509,711,800 | $ | 110,532,788 | $ | 3,588,186,087 | ||||||
Undistributed (Over-distribution of) net investment income | 7,230,827 | (212,578 | ) | (37,868,789 | ) | |||||||
Accumulated net realized gain (loss) | 21,545,035 | 2,722,601 | 180,969,505 | |||||||||
Net unrealized appreciation (depreciation) | 17,222,382 | (2,999,805 | ) | 856,596,693 | ||||||||
Net assets | $ | 555,710,044 | $ | 110,043,006 | $ | 4,587,883,496 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
N/A | – Global Infrastructure does not offer Class B Shares or Class R6 Shares. Real Asset Income does not offer Class B Shares, Class R3 Shares, or Class R6 Shares. |
(1) | – Class R6 Shares were established and commenced operations on April 30, 2013. |
See accompanying notes to financial statements.
34 | Nuveen Investments |
Statement of Operations (Unaudited)
Six Months Ended June 30, 2013
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income (net of foreign tax withheld of $826,886, $125,981 and $91,124, respectively) | $ | 9,919,351 | $ | 2,767,842 | $ | 42,304,595 | ||||||
Securities lending income, net | — | — | 268,655 | |||||||||
Total investment income | 9,919,351 | 2,767,842 | 42,573,250 | |||||||||
Expenses | ||||||||||||
Management fees | 2,280,712 | 309,747 | 18,834,119 | |||||||||
12b-1 service fees – Class A | 91,770 | 32,417 | 995,995 | |||||||||
12b-1 distribution and service fees – Class B | N/A | N/A | 9,693 | |||||||||
12b-1 distribution and service fees – Class C | 80,984 | 54,318 | 390,812 | |||||||||
12b-1 distribution and service fees – Class R3 | 335 | N/A | 193,158 | |||||||||
Shareholder servicing agent fees and expenses | 309,769 | 25,549 | 2,667,676 | |||||||||
Custodian fees and expenses | 179,155 | 55,111 | 364,306 | |||||||||
Directors fees and expenses | 5,786 | 1,012 | 49,863 | |||||||||
Professional fees | 51,690 | 25,177 | 116,588 | |||||||||
Shareholder reporting expenses | 45,752 | 6,958 | 433,935 | |||||||||
Federal and state registration fees | 66,394 | 31,486 | 160,332 | |||||||||
Other expenses | 3,531 | 1,652 | 26,610 | |||||||||
Total expenses before fee waiver/expense reimbursement | 3,115,878 | 543,427 | 24,243,087 | |||||||||
Fee waiver/expense reimbursement | (493,677 | ) | (86,308 | ) | — | |||||||
Net expenses | 2,622,201 | 457,119 | 24,243,087 | |||||||||
Net investment income (loss) | 7,297,150 | 2,310,723 | 18,330,163 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from investments and foreign currency | 19,224,618 | 2,369,174 | 227,422,337 | |||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (11,680,079 | ) | (4,537,497 | ) | (44,611,990 | ) | ||||||
Net realized and unrealized gain (loss) | 7,544,539 | (2,168,323 | ) | 182,810,347 | ||||||||
Net increase (decrease) in net assets from operations | $ | 14,841,689 | $ | 142,400 | $ | 201,140,510 |
N/A | – Global Infrastructure does not offer Class B Shares. Real Asset Income does not offer Class B Shares or Class R3 Shares. |
See accompanying notes to financial statements.
Nuveen Investments | 35 |
Statement of Changes in Net Assets
Global Infrastructure | Real Asset Income | |||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | Six Months Ended 6/30/13 | Year Ended 12/31/12 | |||||||||||||
Operations |
| |||||||||||||||
Net investment income (loss) | $ | 7,297,150 | $ | 6,168,810 | $ | 2,310,723 | $ | 1,441,849 | ||||||||
Net realized gain (loss) from investments and foreign currency | 19,224,618 | 12,137,973 | 2,369,174 | 957,183 | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (11,680,079 | ) | 19,382,522 | (4,537,497 | ) | 1,539,555 | ||||||||||
Net increase (decrease) in net assets from operations | 14,841,689 | 37,689,305 | 142,400 | 3,938,587 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | — | (1,408,692 | ) | (906,450 | ) | (332,722 | ) | |||||||||
Class B | N/A | N/A | N/A | N/A | ||||||||||||
Class C | — | (179,680 | ) | (303,029 | ) | (79,376 | ) | |||||||||
Class R3 | — | (2,208 | ) | N/A | (602 | ) | ||||||||||
Class R6 | N/A | N/A | N/A | N/A | ||||||||||||
Class I | — | (6,163,756 | ) | (1,263,962 | ) | (1,105,444 | ) | |||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A | — | (1,123,513 | ) | — | (180,929 | ) | ||||||||||
Class B | N/A | N/A | N/A | N/A | ||||||||||||
Class C | — | (232,692 | ) | — | (64,049 | ) | ||||||||||
Class R3 | — | (1,488 | ) | N/A | — | |||||||||||
Class R6 | N/A | N/A | N/A | N/A | ||||||||||||
Class I | — | (4,022,345 | ) | — | (481,631 | ) | ||||||||||
Decrease in net assets from distributions to shareholders | — | (13,134,374 | ) | (2,473,441 | ) | (2,244,753 | ) | |||||||||
Fund Share Transactions |
| |||||||||||||||
Proceeds from sale of shares | 254,751,380 | 181,543,700 | 87,411,115 | 30,998,443 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | — | 6,486,813 | 2,238,098 | 2,022,240 | ||||||||||||
254,751,380 | 188,030,513 | 89,649,213 | 33,020,683 | |||||||||||||
Cost of shares redeemed | (43,987,644 | ) | (62,020,696 | ) | (19,461,734 | ) | (2,841,436 | ) | ||||||||
Net increase (decrease) in net assets from Fund share transactions | 210,763,736 | 126,009,817 | 70,187,479 | 30,179,247 | ||||||||||||
Net increase (decrease) in net assets | 225,605,425 | 150,564,748 | 67,856,438 | 31,873,081 | ||||||||||||
Net assets at the beginning of period | 330,104,619 | 179,539,871 | 42,186,568 | 10,313,487 | ||||||||||||
Net assets at the end of period | $ | 555,710,044 | $ | 330,104,619 | $ | 110,043,006 | $ | 42,186,568 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 7,230,827 | $ | (66,323 | ) | $ | (212,578 | ) | $ | (49,860 | ) |
N/A | – Global Infrastructure does not offer Class B Shares or Class R6 Shares. Real Asset Income does not offer Class B Shares, Class R3 Shares or Class R6 Shares. After the close of business on May 20, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
36 | Nuveen Investments |
Real Estate Securities | ||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 18,330,163 | $ | 58,033,634 | ||||
Net realized gain (loss) from investments and foreign currency | 227,422,337 | 175,391,347 | ||||||
Change in net unrealized appreciation (depreciation) of | (44,611,990 | ) | 357,456,067 | |||||
Net increase (decrease) in net assets from operations | 201,140,510 | 590,881,048 | ||||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A | (7,571,354 | ) | (15,583,128 | ) | ||||
Class B | (11,045 | ) | (28,672 | ) | ||||
Class C | (479,282 | ) | (860,519 | ) | ||||
Class R3 | (648,482 | ) | (1,318,535 | ) | ||||
Class R6 | (138,395 | ) | N/A | |||||
Class I | (40,386,137 | ) | (67,298,948 | ) | ||||
From accumulated net realized gains: | ||||||||
Class A | — | (23,186,752 | ) | |||||
Class B | — | (61,771 | ) | |||||
Class C | — | (2,153,298 | ) | |||||
Class R3 | — | (2,195,554 | ) | |||||
Class R6 | — | N/A | ||||||
Class I | — | (97,222,367 | ) | |||||
Decrease in net assets from distributions to shareholders | (49,234,695 | ) | (209,909,544 | ) | ||||
Fund Share Transactions |
| |||||||
Proceeds from sale of shares | 973,521,798 | 1,466,271,905 | ||||||
Proceeds from shares issued to shareholders due to | 35,029,380 | 158,621,477 | ||||||
1,008,551,178 | 1,624,893,382 | |||||||
Cost of shares redeemed | (682,230,502 | ) | (1,023,309,961 | ) | ||||
Net increase (decrease) in net assets from Fund share | 326,320,676 | 601,583,421 | ||||||
Net increase (decrease) in net assets | 478,226,491 | 982,554,925 | ||||||
Net assets at the beginning of period | 4,109,657,005 | 3,127,102,080 | ||||||
Net assets at the end of period | $ | 4,587,883,496 | $ | 4,109,657,005 | ||||
Undistributed (Over-distribution of) net investment income at | $ | (37,868,789 | ) | $ | (6,964,257 | ) |
N/A | – Class R6 Shares were established and commenced operations on April 30, 2013. |
See accompanying notes to financial statements.
Nuveen Investments | 37 |
Financial Highlights (Unaudited)
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 | From Accum- Net Realized Gains | Total | Ending Net Asset Value | |||||||||||||||||||||||||
Class A (12/07) | ||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||
2013(g) | $ | 9.56 | $ | .13 | $ | .26 | $ | .39 | $ | — | $ | — | $ | — | $ | 9.95 | ||||||||||||||||
2012 | 8.59 | .21 | 1.12 | 1.33 | (.20 | ) | (.16 | ) | (.36 | ) | 9.56 | |||||||||||||||||||||
2011(f) | 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(d) | 10.00 | .05 | (3.62 | ) | (3.57 | ) | — | — | — | 6.43 | ||||||||||||||||||||||
Class C (11/08) | ||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||
2013(g) | 9.49 | .10 | .26 | .36 | — | — | — | 9.85 | ||||||||||||||||||||||||
2012 | 8.53 | .13 | 1.11 | 1.24 | (.12 | ) | (.16 | ) | (.28 | ) | 9.49 | |||||||||||||||||||||
2011(f) | 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(e) | 6.48 | .11 | 1.24 | 1.35 | (.08 | ) | — | (.08 | ) | 7.75 | ||||||||||||||||||||||
Class R3 (11/08) | ||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||
2013(g) | 9.68 | .12 | .26 | .38 | — | — | — | 10.06 | ||||||||||||||||||||||||
2012 | 8.68 | .18 | 1.15 | 1.33 | (.17 | ) | (.16 | ) | (.33 | ) | 9.68 | |||||||||||||||||||||
2011(f) | 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(e) | 6.48 | .14 | 1.24 | 1.38 | (.08 | ) | — | (.08 | ) | 7.78 | ||||||||||||||||||||||
Class I (12/07) | ||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||
2013(g) | 9.57 | .15 | .26 | .41 | — | — | — | 9.98 | ||||||||||||||||||||||||
2012 | 8.62 | .23 | 1.13 | 1.36 | (.25 | ) | (.16 | ) | (.41 | ) | 9.57 | |||||||||||||||||||||
2011(f) | 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(d) | 10.00 | .16 | (3.73 | ) | (3.57 | ) | — | — | — | 6.43 |
38 | Nuveen Investments |
Ratios/Supplemental Data | ||||||||||||||||||||||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(h) | ||||||||||||||||||||
4.08 | % | $ | 74,452 | 1.42 | %* | 2.40 | %* | 1.23 | %* | 2.59 | %* | 90 | % | |||||||||||||
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 | |||||||||||||||
3.79 | 17,414 | 2.17 | * | 1.73 | * | 1.98 | * | 1.92 | * | 90 | ||||||||||||||||
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 | ||||||||||||||||
3.93 | 125 | 1.66 | * | 2.09 | * | 1.47 | * | 2.28 | * | 90 | ||||||||||||||||
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 | ||||||||||||||||
4.28 | 463,719 | 1.18 | * | 2.81 | * | .98 | * | 3.01 | * | 90 | ||||||||||||||||
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) | 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. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For the period December 17, 2007 (commencement of operations) through October 31, 2008. |
(e) | For the period November 3, 2008 (commencement of operations) through October 31, 2009. |
(f) | For the two months ended December 31, 2011. |
(g) | For the six months ended June 30, 2013. |
(h) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Footnote 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 39 |
Financial Highlights (Unaudited) (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 | From Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (9/11) | ||||||||||||||||||||||||||||||||
2013(e) | $ | 22.27 | $ | .68 | $ | .08 | $ | .76 | $ | (.56 | ) | $ | — | $ | (.56 | ) | $ | 22.47 | ||||||||||||||
2012 | 20.38 | 1.22 | 2.21 | 3.43 | (1.13 | ) | (.41 | ) | (1.54 | ) | 22.27 | |||||||||||||||||||||
2011(d) | 20.00 | .26 | .35 | .61 | (.23 | ) | — | (.23 | ) | 20.38 | ||||||||||||||||||||||
Class C (9/11) | ||||||||||||||||||||||||||||||||
2013(e) | 22.26 | .58 | .10 | .68 | (.47 | ) | — | (.47 | ) | 22.47 | ||||||||||||||||||||||
2012 | 20.37 | 1.08 | 2.19 | 3.27 | (.97 | ) | (.41 | ) | (1.38 | ) | 22.26 | |||||||||||||||||||||
2011(d) | 20.00 | .21 | .35 | .56 | (.19 | ) | — | (.19 | ) | 20.37 | ||||||||||||||||||||||
Class I (9/11) | ||||||||||||||||||||||||||||||||
2013(e) | 22.27 | .66 | .13 | .79 | (.59 | ) | — | (.59 | ) | 22.47 | ||||||||||||||||||||||
2012 | 20.38 | 1.24 | 2.24 | 3.48 | (1.18 | ) | (.41 | ) | (1.59 | ) | 22.27 | |||||||||||||||||||||
2011(d) | 20.00 | .27 | .36 | .63 | (.25 | ) | — | (.25 | ) | 20.38 |
40 | Nuveen Investments |
Ratios/Supplemental Data | ||||||||||||||||||||||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(f) | ||||||||||||||||||||
3.40 | % | $ | 43,237 | 1.38 | %* | 5.72 | %* | 1.17 | %* | 5.94 | %* | 83 | % | |||||||||||||
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 | ||||||||||||||||
3.01 | 16,822 | 2.13 | * | 4.85 | * | 1.92 | * | 5.06 | * | 83 | ||||||||||||||||
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 | ||||||||||||||||
3.53 | 49,984 | 1.13 | * | 5.54 | * | .92 | * | 5.75 | * | 83 | ||||||||||||||||
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) | 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. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For the period September 13, 2011 (commencement of operations) through December 31, 2011. |
(e) | For the six months ended June 30, 2013. |
(f) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Footnote 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 41 |
Financial Highlights (Unaudited) (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 | From Accum- Net Realized Gains | Return of Capital | Total | Ending Net Asset Value | ||||||||||||||||||||||||||||
Class A (9/95) | ||||||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||||||
2013(e) | $ | 21.02 | $ | .06 | $ | .98 | $ | 1.04 | $ | (.22 | ) | $ | — | $ | — | $ | (.22 | ) | $ | 21.84 | ||||||||||||||||
2012 | 18.76 | .28 | 3.07 | 3.35 | (.43 | ) | (.66 | ) | — | (1.09 | ) | 21.02 | ||||||||||||||||||||||||
2011(d) | 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 | ||||||||||||||||||||||
Class B (9/95) | ||||||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||||||
2013(e) | 20.53 | (.03 | ) | .96 | .93 | (.13 | ) | — | — | (.13 | ) | 21.33 | ||||||||||||||||||||||||
2012 | 18.34 | .11 | 3.01 | 3.12 | (.27 | ) | (.66 | ) | — | (.93 | ) | 20.53 | ||||||||||||||||||||||||
2011(d) | 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 | ||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||||||
2013(e) | 20.59 | (.01 | ) | .94 | .93 | (.13 | ) | — | — | (.13 | ) | 21.39 | ||||||||||||||||||||||||
2012 | 18.39 | .12 | 3.01 | 3.13 | (.27 | ) | (.66 | ) | — | (.93 | ) | 20.59 | ||||||||||||||||||||||||
2011(d) | 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 | ||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||||||
2013(e) | 21.29 | .04 | .97 | 1.01 | (.19 | ) | — | — | (.19 | ) | 22.11 | |||||||||||||||||||||||||
2012 | 18.99 | .23 | 3.12 | 3.35 | (.39 | ) | (.66 | ) | — | (1.05 | ) | 21.29 | ||||||||||||||||||||||||
2011(d) | 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 | ||||||||||||||||||||||
Class R6 (4/13) | ||||||||||||||||||||||||||||||||||||
2013(f) | 24.06 | .02 | (1.87 | ) | (1.85 | ) | (.12 | ) | — | — | (.12 | ) | 22.09 | |||||||||||||||||||||||
Class I (6/95) | ||||||||||||||||||||||||||||||||||||
Year Ended 12/31 | ||||||||||||||||||||||||||||||||||||
2013(e) | 21.26 | .10 | .98 | 1.08 | (.25 | ) | — | — | (.25 | ) | 22.09 | |||||||||||||||||||||||||
2012 | 18.97 | .35 | 3.09 | 3.44 | (.49 | ) | (.66 | ) | — | (1.15 | ) | 21.26 | ||||||||||||||||||||||||
2011(d) | 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 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | 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. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
42 | Nuveen Investments |
Ratios/Supplemental Data | ||||||||||||||||||||||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Invest- ment Income (Loss) | Expenses | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(g) | ||||||||||||||||||||
4.92 | % | $ | 744,539 | 1.24 | %* | .55 | %* | 1.24 | %* | .55 | %* | 42 | % | |||||||||||||
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 | |||||||||||||||||||
4.52 | 1,696 | 1.99 | * | (.25 | )* | 1.99 | * | (.25 | )* | 42 | ||||||||||||||||
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 | |||||||||||||||||||
4.51 | 82,364 | 1.99 | * | (.10 | )* | 1.99 | * | (.10 | )* | 42 | ||||||||||||||||
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 | |||||||||||||||||||
4.74 | 73,345 | 1.49 | * | .34 | * | 1.49 | * | .34 | * | 42 | ||||||||||||||||
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 | |||||||||||||||||||
(7.67 | ) | 24,694 | .91 | * | .41 | * | .91 | * | .41 | * | 42 | |||||||||||||||
5.06 | 3,661,246 | .99 | * | .89 | * | .99 | * | .89 | * | 42 | ||||||||||||||||
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 |
(d) | For the two months ended December 31, 2011. |
(e) | For the six months ended June 30, 2013. |
(f) | For the period April 30, 2013 (commencement of operations) through June 30, 2013. |
(g) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Footnote 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 43 |
Notes to Financial Statements (Unaudited)
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.
The Funds’ investment adviser is their affiliate, Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with the 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.
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. Infrastructure related companies are defined as 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.
Equity securities in which the Fund invests include common and preferred stocks, publicly-traded units of master limited partnerships (“MLPs”), and real estate investment trusts (“REITs”). The Fund may also invest in exchange traded funds (“ETFs”) and other investment companies (“investment companies”). The Fund may invest in companies of any size, including small- and mid-capitalization companies.
The Fund’s investments include infrastructure-related securities of non-U.S. issuers. Under normal market conditions, the Fund will invest at least 40% of its net assets in securities of non-U.S. issuers and, in any case, will invest at least 30% of its net assets in such issuers. The Fund considers an issuer to be non-U.S. if its legal residence is in a country other than the United States, its securities principally trade in a non-U.S. market, or it derives a significant portion of either its revenues or pretax income from activities outside the United States.
The Fund diversifies its investments among a number of different countries throughout the world. Up to 25% of the Fund’s total assets may be invested in equity securities of emerging market issuers. A country is considered to be an “emerging market” if it is defined as such by Morgan Stanley Capital International Inc.
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, including small- and mid-capitalization companies, and include common stock, preferred securities, hybrid securities and convertible securities, as well as interests in real estate investment trusts (“REITs”), exchange-traded notes (“ETNs”), other investment companies (including exchange-traded funds (“ETFs”)) and equity securities issued by master limited partnerships (“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 invests consists of the physical structures and networks upon which the operation, growth and development of a community depends, which include 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 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 income-producing common stocks of publicly traded companies engaged in the real estate industry. These companies derive at
44 | Nuveen Investments |
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 Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, 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. A country is considered to be an “emerging market” if it is defined as such by Morgan Stanley Capital International Inc.
Each Fund may utilize derivatives, including options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts. The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Class R6 Shares
On April 30, 2013, Real Estate Securities began offering Class R6 Shares. In connection with this offering certain limited categories of investors of Class I Shares, as defined in the Fund’s prospectus, were exchanged to Class R6 Shares.
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 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 June 30, 2013, the Funds had no outstanding when-issued/delayed delivery 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.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Shareholders
Dividends from net investment income 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 year ended December 31, 2012, 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.
Nuveen Investments | 45 |
Notes to Financial Statements (Unaudited) (continued)
For the six months ended June 30, 2013, the Funds applied the actual percentages for the fiscal year ended December 31, 2012, described above, to its receipts from the REITs and treated as income on the Statement of Operations only the amount of ordinary income so calculated. The Funds adjusted that estimated breakdown of income type (and consequently its net investment income) as necessary early in the following calendar year when the REITs inform their shareholders of the actual breakdown of income type.
The actual character of distributions made by the Funds during the fiscal year ended December 31, 2012 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 R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
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 are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and shareholder service fees. Sub-transfer agent fees, which are recognized as a component of “Shareholder servicing fees and expenses” on the Statement of Operations and are prorated among the classes based on relative net assets, are not charged to Class R6 Shares.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
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. Investment Valuation and Fair Value Measurements
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.
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
46 | Nuveen Investments |
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 values (NAV) are 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.
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 | $ | 516,877,190 | $ | — | $ | — | $ | 516,877,190 | ||||||||
Real Estate Investment Trust Common Stocks | 22,256,497 | — | — | 22,256,497 | ||||||||||||
Investment Companies | 1,898,038 | — | — | 1,898,038 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 14,380,131 | — | — | 14,380,131 | ||||||||||||
Total | $ | 555,411,856 | $ | — | $ | — | $ | 555,411,856 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
Nuveen Investments | 47 |
Notes to Financial Statements (Unaudited) (continued)
Real Asset Income | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 23,426,115 | $ | — | $ | — | $ | 23,426,115 | ||||||||
Real Estate Investment Trust Common Stocks | 21,500,715 | — | — | 21,500,715 | ||||||||||||
Convertible Preferred Securities | 2,488,126 | — | — | 2,488,126 | ||||||||||||
$25 Par (or similar) Retail Structures | 22,762,045 | 1,961,802 | — | 24,723,847 | ||||||||||||
Convertible Bonds | — | 1,660,600 | — | 1,660,600 | ||||||||||||
Corporate Bonds | — | 28,930,593 | — | 28,930,593 | ||||||||||||
Investment Companies | 1,568,188 | — | — | 1,568,188 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 2,959,716 | — | 2,959,716 | ||||||||||||
Total | $ | 71,745,189 | $ | 35,512,711 | $ | — | $ | 107,257,900 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications and a breakdown of $25 Par (or similar) Retail Structures classified as Level 2. |
Real Estate Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 65,513,880 | $ | — | $ | — | $ | 65,513,880 | ||||||||
Real Estate Investment Trust Common Stocks | 4,472,699,951 | — | 16,136 | 4,472,716,087 | ||||||||||||
$25 Par (or similar) Retail Structures | 6,337,916 | — | — | 6,337,916 | ||||||||||||
Convertible Bonds | 8,489,050 | — | — | 8,489,050 | ||||||||||||
Investment Companies | 4,649,596 | — | — | 4,649,596 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 391,632,127 | — | — | 391,632,127 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 24,651,047 | — | — | 24,651,047 | ||||||||||||
Total | $ | 4,973,973,567 | $ | — | $ | 16,136 | $ | 4,973,989,703 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications and a breakdown of Real Estate Investment Trust 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 a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i.) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii.) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board 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. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including forward foreign currency exchange, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other
48 | Nuveen Investments |
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,” respectively, on the Statement of Operations, when applicable.
Securities Lending
In order to generate additional income, Real Estate Securities may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutions. The 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 Fund’s custodian serves as the securities lending agent for the Fund. The 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.
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 the Fund during the six months ended June 30, 2013, was as follows:
Real Estate Securities | ||||
Securities lending fees paid | $ | 21,795 |
Repurchase Agreements
In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
Investment in Derivatives
Each Fund is authorized to invest in certain derivative instruments such as futures, options and swap contracts. 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. Although the Funds are authorized to invest in derivative instruments and may do so in the future, they did not make any such investments during the six months ended June 30, 2013.
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,
Nuveen Investments | 49 |
Notes to Financial Statements (Unaudited) (continued)
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. Credit risk is generally higher when a non-exchange-traded financial instrument is involved because the counterparty for exchange-traded financial instruments is the exchange’s clearinghouse.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares were as follows:
Global Infrastructure | ||||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,524,219 | $ | 15,423,462 | 3,478,174 | $ | 31,964,173 | ||||||||||
Class C | 333,520 | 3,367,020 | 425,964 | 3,895,174 | ||||||||||||
Class R3 | 6,742 | 68,759 | 12,464 | 119,239 | ||||||||||||
Class I | 23,714,738 | 235,892,139 | 15,769,171 | 145,565,114 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 252,591 | 2,409,930 | ||||||||||||
Class C | — | — | 39,983 | 378,359 | ||||||||||||
Class R3 | — | — | 383 | 3,696 | ||||||||||||
Class I | — | — | 385,771 | 3,694,828 | ||||||||||||
25,579,219 | 254,751,380 | 20,364,501 | 188,030,513 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,237,999 | ) | (12,499,753 | ) | (2,553,265 | ) | (23,453,558 | ) | ||||||||
Class C | (70,729 | ) | (707,736 | ) | (223,142 | ) | (2,020,642 | ) | ||||||||
Class R3 | (7,604 | ) | (78,985 | ) | (441 | ) | (3,871 | ) | ||||||||
Class I | (3,044,322 | ) | (30,701,170 | ) | (3,939,153 | ) | (36,542,625 | ) | ||||||||
(4,360,654 | ) | (43,987,644 | ) | (6,716,001 | ) | (62,020,696 | ) | |||||||||
Net increase (decrease) | 21,218,565 | $ | 210,763,736 | 13,648,500 | $ | 126,009,817 | ||||||||||
Real Asset Income | ||||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,558,891 | $ | 36,371,571 | 502,277 | $ | 10,954,370 | ||||||||||
Class C | 576,812 | 13,459,163 | 196,333 | 4,342,140 | ||||||||||||
Class R3 | N/A | N/A | — | — | ||||||||||||
Class I | 1,599,645 | 37,580,381 | 726,485 | 15,701,933 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 36,997 | 839,365 | 20,720 | 457,333 | ||||||||||||
Class C | 11,783 | 266,944 | 5,423 | 119,973 | ||||||||||||
Class R3 | N/A | N/A | 28 | 602 | ||||||||||||
Class I | 49,696 | 1,131,789 | 65,588 | 1,444,332 | ||||||||||||
3,833,824 | 89,649,213 | 1,516,854 | 33,020,683 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (137,030 | ) | (3,173,693 | ) | (60,047 | ) | (1,334,633 | ) | ||||||||
Class C | (41,109 | ) | (951,111 | ) | (3,063 | ) | (64,284 | ) | ||||||||
Class R3 | N/A | N/A | (2,555 | ) | (53,023 | ) | ||||||||||
Class I | (652,761 | ) | (15,336,930 | ) | (62,790 | ) | (1,389,496 | ) | ||||||||
(830,900 | ) | (19,461,734 | ) | (128,455 | ) | (2,841,436 | ) | |||||||||
Net increase (decrease) | 3,002,924 | $ | 70,187,479 | 1,388,399 | $ | 30,179,247 |
N/A | – Real Asset Income does not offer Class R3 Shares. After the close of business on May 30, 2012, Real Asset Income liquidated all of its Class R3 Shares. |
50 | Nuveen Investments |
Real Estate Securities | ||||||||||||||||
Six Months Ended 6/30/13 | Year Ended 12/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 4,686,834 | $ | 104,911,921 | 8,467,179 | $ | 174,797,170 | ||||||||||
Class B – Exchanges | 825 | 18,842 | 2,409 | 50,036 | ||||||||||||
Class C | 714,682 | 15,793,021 | 659,491 | 13,576,842 | ||||||||||||
Class R3 | 617,824 | 14,019,305 | 1,313,731 | 27,304,524 | ||||||||||||
Class R6 | �� | 138,376 | 3,070,878 | N/A | N/A | |||||||||||
Class R6 – exchange of Class I Shares | 973,923 | 23,432,591 | N/A | N/A | ||||||||||||
Class I | 35,836,147 | 812,275,240 | 59,538,575 | 1,250,543,333 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 330,967 | 7,310,591 | 1,813,351 | 37,580,459 | ||||||||||||
Class B | 484 | 10,434 | 4,063 | 82,016 | ||||||||||||
Class C | 15,448 | 333,983 | 109,808 | 2,221,592 | ||||||||||||
Class R3 | 28,969 | 647,793 | 167,407 | 3,510,633 | ||||||||||||
Class R6 | 6,265 | 138,395 | N/A | N/A | ||||||||||||
Class I | 1,190,691 | 26,588,184 | 5,494,261 | 115,226,777 | ||||||||||||
44,541,435 | 1,008,551,178 | 77,570,275 | 1,624,893,382 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (6,603,509 | ) | (147,384,626 | ) | (13,093,291 | ) | (269,917,042 | ) | ||||||||
Class B | (16,920 | ) | (375,805 | ) | (33,103 | ) | (674,461 | ) | ||||||||
Class C | (276,180 | ) | (6,025,583 | ) | (606,332 | ) | (12,281,609 | ) | ||||||||
Class R3 | (747,229 | ) | (17,002,409 | ) | (1,375,299 | ) | (28,727,546 | ) | ||||||||
Class R6 | (827 | ) | (18,042 | ) | N/A | N/A | ||||||||||
Class I | (21,489,779 | ) | (487,991,446 | ) | (34,038,553 | ) | (711,709,303 | ) | ||||||||
Class I – exchange to Class R6 Shares | (973,923 | ) | (23,432,591 | ) | — | — | ||||||||||
(30,108,367 | ) | (682,230,502 | ) | (49,146,578 | ) | (1,023,309,961 | ) | |||||||||
Net increase (decrease) | 14,433,068 | $ | 326,320,676 | 28,423,697 | $ | 601,583,421 |
N/A | – Class R6 Shares were established and commenced operations on April 30, 2013. |
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 six months ended June 30, 2013 and fiscal year ended December 31, 2012, were as follows:
Fund | Six Months Ended 6/30/13 | Year Ended 12/31/12 | ||||||
Real Estate Securities | 974 | 30,196 |
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 six months ended June 30, 2013, were as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Purchases | $ | 643,200,002 | $ | 129,111,936 | $ | 2,224,185,936 | ||||||
Sales and maturities | 432,670,690 | 63,494,486 | 1,882,018,139 |
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
Nuveen Investments | 51 |
Notes to Financial Statements (Unaudited) (continued)
As of June 30, 2013, 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 | $ | 542,114,472 | $ | 110,366,634 | $ | 4,194,822,928 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 33,672,653 | $ | 1,145,184 | $ | 885,240,963 | ||||||
Depreciation | (20,375,269 | ) | (4,253,918 | ) | (106,074,188 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 13,297,384 | $ | (3,108,734 | ) | $ | 779,166,775 |
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 as of December 31, 2012, the Funds’ last 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 as of December 31, 2012, the Funds’ last 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 Funds’ last tax year ended December 31, 2012, was designated for purposes of the dividends paid deduction as follows:
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 |
* | Net ordinary income consists of net taxable income derived from dividends and interest and net short-term capital gains, if any. |
During the Funds’ last 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 a Fund after December 31, 2010 will not be subject to expiration. During the Funds’ last 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 compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables 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 |
52 | Nuveen Investments |
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex level fee schedule for each Fund is as follows:
Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 |
* | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with 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 June 30, 2013, the complex-level fee rate for each Fund was as follows: |
Fund | Complex-Level Fee Rate | |||
Global Infrastructure | .1759 | % | ||
Real Asset Income | .1679 | |||
Real Estate Securities | .1840 |
The 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) for the Fund do not exceed 1.00% and 0.95% of the average daily net assets of any class of shares of Global Infrastructure and Real Asset Income, respectively.
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.
During the six months ended June 30, 2013, 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 | $ | 95,743 | $ | 192,695 | $ | 268,936 | ||||||
Paid to financial intermediaries | 85,496 | 169,543 | 238,956 |
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 six months ended June 30, 2013, 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 | $ | 40,362 | $ | 118,790 | $ | 176,161 |
Nuveen Investments | 53 |
Notes to Financial Statements (Unaudited) (continued)
To compensate for commissions advanced to financial intermediaries 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. During the six months ended June 30, 2013, the Distributor retained such 12b-1 fees as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
12b-1 fees retained | $ | 19,840 | $ | 46,235 | $ | 98,224 |
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 six months ended June 30, 2013, as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
CDSC retained | $ | 283 | $ | 1,608 | $ | 7,829 |
As of June 30, 2013, Nuveen owned 77,584 Class I Shares of Real Asset Income.
54 | Nuveen Investments |
Annual Investment Management Agreement Approval Process
(Unaudited)
The Board of Directors (each, a “Board” and each Director, a “Board Member”) of 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 (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 20-22, 2013 (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.
In preparation for its 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 its annual review, the Board also held a separate meeting on April 17-18, 2013, 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 its 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 regarding, among other things, fund performance, fund expenses, the performance of the investment teams, and compliance, regulatory and risk management matters. In addition to regular reports, the Advisor provides special reports to the Board or a committee thereof from time to time to enhance the Board’s understanding of various topics that impact some or all the Nuveen funds (such as accounting and financial statement presentations of the various forms of leverage that may be used by a closed-end fund or an update on the valuation policies and procedures), to update the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Advisor. The Board also meets with key investment personnel managing the fund portfolios during the year. In October 2011, the Board also created two 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 business practices of open-end and closed-end funds. These Committees meet prior to each quarterly Board meeting, and the Advisor provides presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.
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. In this regard, the Independent Board Members visited certain of the Sub-Advisor’s investment teams in Minneapolis in September 2012, and the Sub-Advisor’s municipal team in November 2012. In addition, the ad hoc Securities Lending Committee of the Board met with certain service providers and the Audit Committee of the Board made a site visit to three pricing service providers.
The Board considers the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Advisory Agreements. The Independent Board Members also are assisted throughout the process by independent legal counsel. Counsel provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel 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 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.
Nuveen Investments | 55 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
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 capability and integrity of the Advisor and its staff 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 applicable initiatives Nuveen had taken for the open-end 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, 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. Given the Advisor’s emphasis on business risk, the Board also appointed an Independent Board Member as a point person to review and keep the Board apprised of developments in this area during the year.
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 considered the new services and service enhancements that the Advisor has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Advisor’s focus on product rationalization for both closed-end and open-end funds during the year, consolidating certain Nuveen funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various Nuveen funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain Nuveen funds. The Board recognized the Advisor’s significant investment in technology initiatives to, among other things, create a central repository for fund and other Nuveen product data, develop a group within the Advisor designed to handle and analyze fund performance data, and implement a data system to support the risk oversight group. The Board also recognized the enhancements in the valuation group within the Advisor, including upgrading the team and process and automating certain basic systems, and in the compliance group with the addition of personnel, particularly within the testing group. With the advent of the Open-End Fund Committee and Closed-End Fund Committee, the Board also noted the enhanced support and comprehensive in-depth presentations provided by the Advisor to these committees.
In addition to the foregoing actions, the Board also considered other initiatives related to the open-end Nuveen funds including, among other things, the development of a comprehensive strategic plan and the addition of members to the product strategy team; the commencement of various new funds; the removal of redemption fees for certain funds; the establishment of a working group to enhance the Advisor’s oversight of the disclosures pertaining to Nuveen’s products and services; the acceleration of monthly holdings disclosure for certain funds; and the development of a new share class 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, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of the Funds’ performance and the applicable investment team. In general, in considering a fund’s performance, the Board recognized that a fund’s performance can be reviewed through various measures including the fund’s absolute return, the fund’s return compared to the performance of other peer funds, and the fund’s performance compared to its respective benchmark. Accordingly, 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”) and with recognized and/or customized benchmarks (i.e., benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2012 as well as performance information reflecting the first quarter of 2013 (or for such shorter periods available for the Nuveen Real Asset Income Fund (the “Real Asset Income Fund”), which did not exist for part of the foregoing time frame). This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
56 | Nuveen Investments |
In evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data. The Board recognized that the performance data reflects a snapshot of time, in this case as of the end of the most recent calendar year or quarter. The Board noted that selecting a different performance period could derive significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance. 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.
With respect to the comparative performance information, the Board recognized that the usefulness of comparative performance data as a frame of reference to measure a fund’s performance may be limited because the Performance Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Advisor classified, in relevant part, the Performance Peer Groups of certain funds (including the Nuveen Global Infrastructure Fund (the “Global Infrastructure Fund”)) as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds (including the Real Asset Income Fund) were classified as having such significant differences as to be irrelevant. Accordingly, while the Board is cognizant of the relative 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 considered that the variations between the objectives and investment parameters or guidelines of the funds with their peers and/or benchmarks result in differences in performance results. The Board also noted that open-end funds offer multiple classes and the performance of the various classes of a fund should be substantially similar on a relative basis because all of the classes are invested in the same portfolio of securities and that differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. In addition, with respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Advisor the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
In considering the performance data for the Funds, the Independent Board Members noted that the Nuveen Real Estate Securities Fund and the Global Infrastructure Fund had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods. In addition, the Independent Board Members noted that the Real Asset Income Fund was relatively new with a shorter performance history available, thereby limiting the ability to make a meaningful assessment of performance; they observed, however, that such Fund outperformed its benchmark for the one-year period.
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 fees 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 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 and the Real Asset Income Fund had net management fees and net expense ratios (including fee waivers and expense reimbursements) below their peer averages. In addition, they noted that the Real Estate Securities Fund had a slightly higher net management fee than its peer average, but a net expense ratio in line with its 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.
Nuveen Investments | 57 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-advisor (which, in the case of the Funds, is an affiliated sub-advisor), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Advisor and the fee paid to the sub-advisor. In general terms, the fee to the Advisor reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-advisor level, the fee generally reflects the portfolio management services provided by the sub-advisor. The Independent Board Members reviewed information regarding the nature of services provided by the Advisor, including through the Sub-Advisor, and the range of fees and average fee the Sub-Advisor assessed for such services to other clients. Such other clients include separately managed accounts (both retail and institutional accounts), 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. Many of the additional administrative services provided by the Advisor are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Advisor may vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. 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.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities 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 2012. 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 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 and that various allocation methodologies may each be reasonable but yield different results. 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. 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-advisors affiliated with Nuveen, including the Sub-Advisor, the Independent Board Members reviewed the sub-advisor’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-advisors. 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 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. 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.
58 | Nuveen Investments |
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. at the end of 2010, 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 Funds’ portfolio transactions are determined by the Sub-Advisor. Accordingly, the Independent Board Members considered that the Sub-Advisor may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. With respect to any fixed income securities, however, the Board recognized that such securities generally trade on a principal basis that does not generate soft dollar credits. Nevertheless, the Sub-Advisor may also engage in soft dollar arrangements on behalf of other clients, and the Funds as well as the Sub-Advisor may benefit from the research or other services received. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Advisor may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Advisor to manage the Fund. The Independent Board Members noted that the Sub-Advisor’s profitability may be somewhat lower if it 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.
Nuveen Investments | 59 |
Notes
60 | Nuveen Investments |
Notes
Nuveen Investments | 61 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
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 or management fees.
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.
62 | Nuveen Investments |
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
PricewaterhouseCoopers LLP
Chicago, IL
Custodian
U.S. Bank National Association
Milwaukee, WI
State Street Bank & Trust Company
Boston, MA
Transfer Agent and Shareholder Services
Boston Financial
Data Services, Inc.
Nuveen Investor Services
P.O. Box 8530
Boston, MA 02266-8530
(800) 257-8787
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC -0330 for room hours and operation.
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
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 | 63 |
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 $216 billion as of June 30, 2013.
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 |
MSA-FREGIF-0613P
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this registrant.
Item 6. Schedule of Investments.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Funds, Inc.
By | (Signature and Title) | /s/ Kevin J. McCarthy | ||||
Kevin J. McCarthy Vice President and Secretary |
Date: September 5, 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: September 5, 2013
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: September 5, 2013