UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05309
Nuveen Investment Funds, Inc.
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: October 31
Date of reporting period: October 31, 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.
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Mutual Funds |
Nuveen Index Funds |
For investors seeking the potential for long-term capital appreciation. |
| Annual Report October 31, 2013 |
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Fund Name | Class A | Class B | Class C | Class R3 | Class I | |||||||||
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Nuveen Equity Index Fund | FAEIX | FAEQX | FCEIX | FADSX | FEIIX | |||||||||
Nuveen Mid Cap Index Fund | FDXAX | — | FDXCX | FMCYX | FIMEX | |||||||||
Nuveen Small Cap Index Fund | FMDAX | — | FPXCX | ARSCX | ASETX |
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Must be preceded by or accompanied by a prospectus.
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Nuveen Investments | 3 |
Chairman’s Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
December 23, 2013
4 | Nuveen Investments |
Nuveen Equity Index Fund
Nuveen Mid Cap Index Fund
Nuveen Small Cap Index Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Walter A. French and David A. Friar are the portfolio managers for the Funds. Walt has managed the Nuveen Equity Index Fund since 1999 and David has managed the Nuveen Equity Index Fund since 2000. Walt and David have managed the Nuveen Mid Cap Index Fund and the Nuveen Small Cap Index Fund since 2001. Here the portfolio managers examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2013.
What factors affected the U.S. economy and the equity market during the twelve-month reporting period ended October 31, 2013?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013, the Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Federal Reserve’s target of 6.5%. As of October 2013, the national unemployment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
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.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown of it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Federal Reserve’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility.
For much of the reporting period, low interest rates and a fairly benign macro environment caused U.S. investors to move out the risk spectrum, resulting in robust flows into U.S. equity funds. Leading U.S. stock market indexes, including the S&P 500® Index, the Dow Jones Industrial Average and the Russell 2000® Index, each hit all-time highs during the reporting period. The S&P 500® Index gained 27% during the reporting period. Sluggish global growth, muted global inflation and ongoing fiscal drag provided a backdrop for continued monetary policy actions outside the U.S. as well, which drove strong equity market advances globally. In Japan, newly elected Prime Minister Shinzo Abe articulated policies designed to reinvigorate Japan’s weak economy. Widespread optimism for his strategies led to a massive rally in the Japanese equity market, which was up 34% during this reporting period, according to MSCI Japan Index. Elsewhere, the European Central Bank signaled an extended period of low rates while the U.K.’s Bank of England pursued its most aggressive monetary policy to date. Returns for developed markets outside the U.S. were very strong, as evidenced by the MSCI EAFE Index’s advance of 26% for the reporting period. In emerging market countries, which are more dependent on global growth and commodity prices, stocks significantly lagged developed markets with a 6% return during this reporting period, according to the MSCI Emerging Market Index.
Nuveen Equity Index Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares performed in-line with the Lipper S&P 500® Index Objective Funds Classification Average, but underperformed the S&P 500® Index for the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the S&P 500® Index as closely as possible, with consideration given to turnover costs and fees. S&P/Dow Jones changes the index definition as often as weekly, deleting firms as they are acquired or when the membership committee determines that a firm is no longer representative of the index definition. Additionally, index weights are changed to reflect merger and acquisition (M&A) activity or share issuance and repurchasing. These changes typically result in low turnover, well below 20% per year. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the S&P 500® Index,
6 | Nuveen Investments |
depending on the size of the Fund. During the reporting period, we held essentially all of the issues found in the index. In addition, we aggressively tracked and implemented the occasional changes to index member names, as well as changes to the relative weights in the index.
The Fund performed very similarly to the index during the reporting period. The top performing sectors in the index were consumer discretionary, industrials and health care, which all advanced significantly. The three lowest performing sectors were utilities, telecommunications services and energy. Also during the reporting period, we continued to invest in S&P 500® Index futures to convert cash into the equivalent of an S&P 500® Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. These contracts are used as a means to efficiently gain exposure to a broad base of equity securities. The Fund’s holdings of futures, which were matched to the level of cash, were helpful in keeping the Fund fully invested, neither overexposed nor underexposed to equities, despite cash flows. Due to rising equity prices over the reporting period, these positions modestly benefited performance.
Nuveen Mid Cap Index Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares underperformed both the Lipper Mid-Cap Core Funds Classification Average and the S&P MidCap 400® Index.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the S&P MidCap 400® Index as closely as possible, with consideration given to turnover costs and fees. S&P/Dow Jones changes the index definition as often as weekly, deleting firms as they are acquired or when the membership committee determines that a firm is no longer representative of the index definition. Additionally, index weights are changed to reflect mergers and acquisitions (M&A) activity or share issuance and repurchasing. These changes typically result in low turnover, well below 20% per year. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the S&P MidCap 400® Index, depending on the size of the Fund. During the reporting period, we held essentially all of the issues found in the index. In addition, we aggressively tracked and implemented the occasional changes to index member names, as well as changes to the relative weights in the index.
The Fund performed very similarly to the index during the reporting period. The top performing sectors in the index were consumer staples, health care and industrials, each advancing significantly. The three lowest performing sectors were utilities, telecommunications services and materials. Also during the period, we continued to invest in S&P MidCap 400® E-Mini Index futures to convert cash into the equivalent of an S&P MidCap 400® Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. These contracts are used as a means to efficiently gain exposure to a broad base of equity securities. The Fund’s holdings of futures, which were matched to the level of cash, were helpful in keeping the Fund fully invested, neither overexposed nor underexposed to equities, despite cash flows. Due to rising equity prices over the reporting period, these positions modestly benefited performance.
Nuveen Investments | 7 |
Portfolio Managers’ Comments (continued)
Nuveen Small Cap Index Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares outperformed the Lipper Small-Cap Core Funds Classification Average, but underperformed the Russell 2000® Index.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is invested to replicate the return of the Russell 2000® Index as closely as possible, with consideration given to turnover costs and fees. Russell Investments reconstitutes this index near the end of June each year, generally selecting the stocks that are numbered 1001 through 3000 of the largest eligible U.S. companies. (To reduce turnover expenses, companies near the 1000 breakpoint remain in their prior category.) Throughout the remainder of the year, the number of stocks in the index will vary as appropriate IPOs are added quarterly and stocks are removed because of M&A activity or delisting. Share changes due to issuance and repurchasing are adjusted monthly. During the reporting period, these changes resulted in an approximately 10% level of turnover. The majority of changes are from successful firms that move up to the Russell 1000® Index. We believe the Fund’s objective can best be achieved by investing in approximately 90% to 100% of the issues included in the Russell 2000® Index, depending on the size of the Fund. During the reporting period, we held essentially all of the issues found in the index. In addition, we aggressively tracked and implemented the occasional changes to index member names, as well as changes to the relative weights in the index.
The Fund performed very similarly to the index during the reporting period. The top performing sectors in the index were information technology, industrials and consumer staples, which all advanced significantly. The three lowest performing sectors were utilities, materials and telecommunications services. Also during the period, we continued to invest in Russell 2000® E-Mini Index futures to convert cash into the equivalent of a Russell 2000® Index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. These contracts are used as a means to efficiently gain exposure to a broad base of equity securities. The Fund’s holdings of futures, which were matched to the level of cash, were helpful in keeping the Fund fully invested, neither overexposed nor underexposed to equities, despite cash flows. Due to rising equity prices over the reporting period, these positions modestly benefited performance.
8 | Nuveen Investments |
Nuveen Equity Index Fund
Nuveen Mid Cap Index Fund
Nuveen Small Cap Index Fund
Mutual fund investing involves risk; principal loss is possible. The Funds’ investments in common stocks involve the risk of decline due to adverse company or industry news or a general economic decline. The use of derivatives involves substantial financial risk and transaction costs. In addition, each Fund may fail to match index performance. Small- and mid-cap stocks are subject to greater price volatility and liquidity risks.
Nuveen Investments | 9 |
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10 | Nuveen Investments |
Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 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 only.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers 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.
Nuveen Investments | 11 |
Fund Performance and Expense Ratios (continued)
Nuveen Equity Index Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 26.32% | 14.55% | 6.90% | |||||||||
S&P 500® Index* | 27.18% | 15.17% | 7.46% | |||||||||
Lipper S&P 500® Index Objective Funds Classification Average* | 26.46% | 14.54% | 6.94% | |||||||||
Class B Shares w/o CDSC | 25.35% | 13.70% | 6.10% | |||||||||
Class B Shares w/CDSC | 20.35% | 13.58% | 6.10% | |||||||||
Class C Shares | 25.35% | 13.70% | 6.10% | |||||||||
Class R3 Shares | 25.96% | 14.27% | 6.64% | |||||||||
Class I Shares | 26.59% | 14.83% | 7.16% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 18.58% | 9.42% | 7.00% | |||||||||
Class B Shares w/o CDSC | 17.68% | 8.60% | 6.20% | |||||||||
Class B Shares w/CDSC | 12.68% | 8.45% | 6.20% | |||||||||
Class C Shares | 17.68% | 8.61% | 6.21% | |||||||||
Class R3 Shares | 18.28% | 9.15% | 6.75% | |||||||||
Class I Shares | 18.89% | 9.70% | 7.27% |
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class B Shares have a contingent deferred sales charge (CDSC) that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Gross | Net | |||||||
Class A Shares | 0.69% | 0.62% | ||||||
Class B Shares | 1.44% | 1.37% | ||||||
Class C Shares | 1.44% | 1.37% | ||||||
Class R3 Shares | 0.94% | 0.87% | ||||||
Class I Shares | 0.44% | 0.37% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2014, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 0.62%, 1.37%, 1.37%, 0.87% and 0.37% for Class A, Class B, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
12 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | 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 Mid Cap Index Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 32.46% | 18.92% | 9.84% | |||||||||
S&P MidCap 400® Index* | 33.48% | 19.63% | 10.44% | |||||||||
Lipper Mid-Cap Core Funds Classification Average* | 33.03% | 17.56% | 8.90% | |||||||||
Class C Shares | 31.51% | 18.02% | 9.02% | |||||||||
Class R3 Shares | 32.16% | 18.63% | 9.58% | |||||||||
Class I Shares | 32.82% | 19.23% | 10.11% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 26.74% | 12.45% | 10.25% | |||||||||
Class C Shares | 25.76% | 11.61% | 9.42% | |||||||||
Class R3 Shares | 26.46% | 12.17% | 9.98% | |||||||||
Class I Shares | 27.12% | 12.72% | 10.52% |
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class C Shares have a 1% contingent deferred sales charge (CDSC) for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Gross | Net | |||||||
Class A Shares | 0.82% | 0.76% | ||||||
Class C Shares | 1.57% | 1.51% | ||||||
Class R3 Shares | 1.07% | 1.01% | ||||||
Class I Shares | 0.57% | 0.51% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2014, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 0.75%, 1.50%, 1.00% and 0.50% for Class A, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 15 |
Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Index Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 35.52% | 16.48% | 8.43% | |||||||||
Russell 2000® Index* | 36.28% | 17.04% | 9.03% | |||||||||
Lipper Small-Cap Core Funds Classification Average* | 34.76% | 17.45% | 9.16% | |||||||||
Class C Shares | 34.57% | 15.62% | 7.60% | |||||||||
Class R3 Shares | 35.24% | 16.19% | 8.15% | |||||||||
Class I Shares | 35.82% | 16.76% | 8.67% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares | 29.34% | 10.75% | 9.06% | |||||||||
Class C Shares | 28.36% | 9.91% | 8.19% | |||||||||
Class R3 Shares | 29.04% | 10.46% | 8.76% | |||||||||
Class I Shares | 29.67% | 11.01% | 9.28% |
Class A Shares have no sales charge and are available only through fee-based programs and certain retirement plans. Class C Shares have a 1% contingent deferred sales charge (CDSC) for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are available to only certain retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Gross | Net | |||||||
Class A Shares | 1.32% | 0.89% | ||||||
Class C Shares | 2.05% | 1.64% | ||||||
Class R3 Shares | 1.57% | 1.14% | ||||||
Class I Shares | 1.05% | 0.64% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2014, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 0.83%, 1.58%, 1.08% and 0.58% for Class A, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 17 |
Holding Summaries as of October 31, 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 Equity Index Fund
Fund Allocation1
Common Stocks | 98.5% | |||
Short-Term Investments | 1.5% | |||
Other2,3 | 0.0% |
Portfolio Composition1
Oil, Gas & Consumable Fuels | 8.4% | |||
Pharmaceuticals | 5.9% | |||
Diversified Financial Services | 5.0% | |||
Computers & Peripherals | 4.0% | |||
Media | 3.8% | |||
IT Services | 3.4% | |||
Software | 3.3% | |||
Insurance | 3.0% | |||
Commercial Banks | 2.7% | |||
Aerospace & Defense | 2.7% | |||
Industrial Conglomerates | 2.5% | |||
Chemicals | 2.5% | |||
Internet Software & Services | 2.4% | |||
Food & Staples Retailing | 2.4% | |||
Biotechnology | 2.4% | |||
Diversified Telecommunication Services | 2.4% | |||
Specialty Retail | 2.3% | |||
Beverages | 2.2% | |||
Capital Markets | 2.1% | |||
Household Products | 2.1% | |||
Health Care Equipment & Supplies | 2.1% | |||
Semiconductors & Equipment | 2.0% | |||
Health Care Providers & Services | 2.0% | |||
Energy Equipment & Services | 1.9% | |||
Real Estate Investment Trust | 1.9% | |||
Communications Equipment | 1.8% | |||
Hotels, Restaurants & Leisure | 1.8% | |||
Short-Term Investments | 1.5% | |||
Other4 | 19.5% |
Top Five Common Stock
Holdings1
Apple, Inc. | 3.0% | |||
Exxon Mobil Corporation | 2.5% | |||
Google Inc., | 1.7% | |||
General Electric Company | 1.7% | |||
Microsoft Corporation | 1.7% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Rounds to less than 0.1%. |
3 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
4 | 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 1.8% of net assets. |
18 | Nuveen Investments |
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 Mid Cap Index Fund
Fund Allocation1
Common Stocks | 93.7% | |||
Short-Term Investments | 6.2% | |||
Other2 | 0.1% |
Portfolio Composition1
Real Estate Investment Trust | 8.5% | |||
Machinery | 5.1% | |||
Insurance | 4.7% | |||
Commercial Banks | 4.2% | |||
Software | 4.0% | |||
Specialty Retail | 4.0% | |||
IT Services | 3.7% | |||
Health Care Providers & Services | 3.1% | |||
Energy Equipment & Services | 2.9% | |||
Oil, Gas & Consumable Fuels | 2.8% | |||
Chemicals | 2.6% | |||
Health Care Equipment & Supplies | 2.4% | |||
Capital Markets | 2.4% | |||
Semiconductors & Equipment | 2.1% | |||
Household Durables | 2.1% | |||
Food Products | 1.9% | |||
Electric Utilities | 1.9% | |||
Electronic Equipment & Instruments | 1.9% | |||
Commercial Services & Supplies | 1.7% | |||
Containers & Packaging | 1.7% | |||
Aerospace & Defense | 1.6% | |||
Hotels, Restaurants & Leisure | 1.5% | |||
Metals & Mining | 1.4% | |||
Gas Utilities | 1.4% | |||
Life Sciences Tools & Services | 1.3% | |||
Media | 1.3% | |||
Textiles, Apparel & Luxury Goods | 1.2% | |||
Internet Software & Services | 1.1% | |||
Short-Term Investments | 6.2% | |||
Other3 | 19.3% |
Top Five Common Stock
Holdings1
Alliance Data Systems Corporation | 0.7% | |||
Affiliated Managers Group Inc. | 0.7% | |||
Tractor Supply Company | 0.6% | |||
LKQ Corporation | 0.6% | |||
Henry Schein Inc. | 0.6% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 1.1% of net assets. |
Nuveen Investments | 19 |
Holding Summaries as of October 31, 2013 (continued)
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 Small Cap Index Fund
Fund Allocation1
Common Stocks | 90.7% | |||
Exchange-Traded Funds2 | 0.0% | |||
Common Stock Rights2 | 0.0% | |||
Warrants2 | 0.0% | |||
Short-Term Investments | 8.4% | |||
Other3 | 0.9% |
Portfolio Composition1
Real Estate Investment Trust | 6.7% | |||
Commercial Banks | 6.4% | |||
Software | 3.8% | |||
Oil, Gas & Consumable Fuels | 3.7% | |||
Biotechnology | 3.4% | |||
Health Care Equipment & Supplies | 3.2% | |||
Semiconductors & Equipment | 3.1% | |||
Specialty Retail | 3.0% | |||
Machinery | 3.0% | |||
Internet Software & Services | 2.7% | |||
Hotels, Restaurants & Leisure | 2.6% | |||
Electronic Equipment & Instruments | 2.4% | |||
Capital Markets | 2.4% | |||
Health Care Providers & Services | 2.3% | |||
Insurance | 2.1% | |||
Chemicals | 2.1% | |||
IT Services | 2.0% | |||
Commercial Services & Supplies | 1.9% | |||
Energy Equipment & Services | 1.8% | |||
Communications Equipment | 1.7% | |||
Aerospace & Defense | 1.5% | |||
Food Products | 1.5% | |||
Thrifts & Mortgage Finance | 1.5% | |||
Electrical Equipment | 1.4% | |||
Professional Services | 1.3% | |||
Food & Staples Retailing | 1.3% | |||
Media | 1.3% | |||
Pharmaceuticals | 1.3% | |||
Metals & Mining | 1.3% | |||
Short-Term Investments | 8.4% | |||
Other4 | 18.9% |
Top Five Common Stock
Holdings1
Costar Group, Inc. | 0.3% | |||
AthenaHealth Inc. | 0.3% | |||
Acuity Brands Inc. | 0.2% | |||
Middleby Corporation | 0.2% | |||
Ultimate Software Group, Inc. | 0.2% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Rounds to less than 0.1%. |
3 | Other assets less liabilities, which includes investments purchased with collateral from securities lending and investments in derivatives as presented in the Fund’s Portfolio of Investments. |
4 | Other assets less liabilities, which includes exchange-traded funds, common stock rights, warrants, investments purchased with collateral from securities lending and investments in derivatives as presented in the Fund’s Portfolio of Investments and all industries less than 1.3% of net assets. |
20 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Equity Index Fund
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||||||||
A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 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 | ||||||||||||||||||||
Ending Account Value (10/31/13) | $ | 1,107.70 | $ | 1,103.20 | $ | 1,103.30 | $ | 1,106.10 | $ | 1,108.60 | $ | 1,022.08 | $ | 1,018.25 | $ | 1,018.25 | $ | 1,020.77 | | $ | 1,023.34 | |||||||||||||||||||
Expenses Incurred During Period | $ | 3.29 | $ | 7.32 | $ | 7.32 | $ | 4.67 | $ | 1.97 | $ | 3.16 | $ | 7.02 | $ | 7.02 | $ | 4.48 | | $ | 1.89 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .62%, 1.38%, 1.38%, .88% and ..37% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Investments | 21 |
Expense Examples (continued)
Nuveen Mid Cap Index 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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,115.40 | $ | 1,111.30 | $ | 1,114.10 | $ | 1,117.70 | $ | 1,021.48 | $ | 1,017.69 | $ | 1,020.21 | | $ | 1,022.74 | |||||||||||||||
Expenses Incurred During Period | $ | 3.95 | $ | 7.93 | $ | 5.28 | $ | 2.62 | $ | 3.77 | $ | 7.58 | $ | 5.04 | | $ | 2.50 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .74%, 1.49%, .99% and .49% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Index Fund
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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,164.70 | $ | 1,161.50 | $ | 1,164.00 | $ | 1,166.80 | $ | 1,021.07 | $ | 1,017.24 | $ | 1,019.81 | | $ | 1,022.33 | |||||||||||||||
Expenses Incurred During Period | $ | 4.47 | $ | 8.61 | $ | 5.84 | $ | 3.11 | $ | 4.18 | $ | 8.03 | $ | 5.45 | | $ | 2.91 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .82%, 1.58%, 1.07% and .57% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
22 | Nuveen Investments |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Investment Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations, of changes in net assets, and the financial highlights present fairly, in all material respects, the financial position of Nuveen Equity Index Fund, Nuveen Mid Cap Index Fund, and Nuveen Small Cap Index Fund (each a series of the Nuveen Investment Funds, Inc., hereinafter referred to as the “Funds”) at October 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of the Funds for the years ended October 31, 2011 and prior were audited by other independent auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
December 27, 2013
Nuveen Investments | 23 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 108.2% | ||||||||||||||
COMMON STOCKS – 98.5% | ||||||||||||||
Aerospace & Defense – 2.7% | ||||||||||||||
33,778 | Boeing Company | $ | 4,408,029 | |||||||||||
16,490 | General Dynamics Corporation | 1,428,529 | ||||||||||||
38,902 | Honeywell International Inc. | 3,373,970 | ||||||||||||
4,462 | L-3 Communications Holdings, Inc., (2) | 448,208 | ||||||||||||
13,289 | Lockheed Martin Corporation | 1,771,955 | ||||||||||||
11,769 | Northrop Grumman Corporation | 1,265,285 | ||||||||||||
7,268 | Precision Castparts Corporation | 1,842,075 | ||||||||||||
16,148 | Raytheon Company, (2) | 1,330,111 | ||||||||||||
6,779 | Rockwell Collins, Inc. | 473,378 | ||||||||||||
13,477 | Textron Inc. | 388,003 | ||||||||||||
41,855 | United Technologies Corporation | 4,447,094 | ||||||||||||
Total Aerospace & Defense | 21,176,637 | |||||||||||||
Air Freight & Logistics – 0.8% | ||||||||||||||
7,993 | C.H. Robinson Worldwide, Inc., (2) | 477,502 | ||||||||||||
10,249 | Expeditors International of Washington, Inc. | 464,177 | ||||||||||||
14,515 | FedEx Corporation, (2) | 1,901,465 | ||||||||||||
35,492 | United Parcel Service, Inc., Class B, (2) | 3,486,734 | ||||||||||||
Total Air Freight & Logistics | 6,329,878 | |||||||||||||
Airlines – 0.2% | ||||||||||||||
40,869 | Delta Air Lines, Inc. | 1,078,124 | ||||||||||||
36,138 | Southwest Airlines Co. | 622,296 | ||||||||||||
Total Airlines | 1,700,420 | |||||||||||||
Auto Components – 0.4% | ||||||||||||||
5,739 | BorgWarner Inc. | 591,863 | ||||||||||||
14,554 | Delphi Automotive PLC | 832,489 | ||||||||||||
12,487 | Goodyear Tire & Rubber Company | 261,977 | ||||||||||||
33,964 | Johnson Controls, Inc. | 1,567,439 | ||||||||||||
Total Auto Components | 3,253,768 | |||||||||||||
Automobiles – 0.7% | ||||||||||||||
194,670 | Ford Motor Company | 3,330,804 | ||||||||||||
37,898 | General Motors Company, (2), (3) | 1,400,331 | ||||||||||||
11,221 | Harley-Davidson, Inc. | 718,593 | ||||||||||||
Total Automobiles | 5,449,728 |
24 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Beverages – 2.2% | ||||||||||||||
7,958 | Beam Inc. | $ | 535,573 | |||||||||||
7,523 | Brown-Forman Corporation | 549,029 | ||||||||||||
13,025 | Coca Cola Enterprises Inc. | 543,533 | ||||||||||||
190,230 | Coca-Cola Company | 7,527,401 | ||||||||||||
7,566 | Constellation Brands, Inc., Class A, (3) | 494,060 | ||||||||||||
10,107 | Dr. Pepper Snapple Group | 478,566 | ||||||||||||
7,746 | Molson Coors Brewing Company, Class B (2) | 418,284 | ||||||||||||
7,149 | Monster Beverage Corporation, (3) | 409,137 | ||||||||||||
76,571 | PepsiCo, Inc. | 6,438,855 | ||||||||||||
Total Beverages | 17,394,438 | |||||||||||||
Biotechnology – 2.4% | ||||||||||||||
9,688 | Alexion Pharmaceuticals Inc., (3) | 1,191,140 | ||||||||||||
37,147 | Amgen Inc. | 4,309,052 | ||||||||||||
11,728 | Biogen Idec Inc., (3) | 2,863,860 | ||||||||||||
20,784 | Celgene Corporation, (3) | 3,086,216 | ||||||||||||
75,559 | Gilead Sciences, Inc., (2), (3) | 5,363,933 | ||||||||||||
3,888 | Regeneron Pharmaceuticals, Inc., (2), (3) | 1,118,189 | ||||||||||||
11,604 | Vertex Pharmaceuticals Inc., (3) | 827,829 | ||||||||||||
Total Biotechnology | 18,760,219 | |||||||||||||
Building Products – 0.0% | ||||||||||||||
17,697 | Masco Corporation | 373,938 | ||||||||||||
Capital Markets – 2.1% | ||||||||||||||
10,099 | Ameriprise Financial, Inc. | 1,015,353 | ||||||||||||
57,747 | Bank of New York Company, Inc. | 1,836,355 | ||||||||||||
6,243 | BlackRock Inc. | 1,877,957 | ||||||||||||
54,549 | Charles Schwab Corporation | 1,235,535 | ||||||||||||
14,163 | E*Trade Group Inc., (3) | 239,496 | ||||||||||||
20,571 | Franklin Resources, Inc. | 1,107,954 | ||||||||||||
21,718 | Goldman Sachs Group, Inc. | 3,493,557 | ||||||||||||
22,819 | Invesco LTD | 770,141 | ||||||||||||
5,939 | Legg Mason, Inc., (2) | 228,473 | ||||||||||||
68,139 | Morgan Stanley | 1,957,633 | ||||||||||||
10,801 | Northern Trust Corporation | 609,392 | ||||||||||||
22,676 | State Street Corporation | 1,588,907 | ||||||||||||
12,855 | T. Rowe Price Group Inc. | 995,106 | ||||||||||||
Total Capital Markets | 16,955,859 | |||||||||||||
Chemicals – 2.5% | ||||||||||||||
10,305 | Air Products & Chemicals Inc. | 1,123,348 | ||||||||||||
3,537 | Airgas, Inc. | 385,781 |
Nuveen Investments | 25 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Chemicals (continued) | ||||||||||||||
2,943 | CF Industries Holdings, Inc. | $ | 634,511 | |||||||||||
59,776 | Dow Chemical Company | 2,359,359 | ||||||||||||
46,371 | E.I. Du Pont de Nemours and Company | 2,837,905 | ||||||||||||
7,641 | Eastman Chemical Company | 602,034 | ||||||||||||
13,176 | Ecolab Inc. | 1,396,656 | ||||||||||||
6,833 | FMC Corporation | 497,169 | ||||||||||||
4,221 | International Flavors & Fragrances Inc. | 348,866 | ||||||||||||
18,845 | LyondellBasell Industries NV | 1,405,837 | ||||||||||||
26,594 | Monsanto Company | 2,789,179 | ||||||||||||
13,733 | Mosaic Company | 629,658 | ||||||||||||
7,089 | PPG Industries, Inc. | 1,294,310 | ||||||||||||
14,700 | Praxair, Inc., (2) | 1,833,237 | ||||||||||||
4,259 | Sherwin-Williams Company | 800,692 | ||||||||||||
5,977 | Sigma-Aldrich Corporation, (2) | 516,592 | ||||||||||||
Total Chemicals | 19,455,134 | |||||||||||||
Commercial Banks – 2.7% | ||||||||||||||
34,733 | BB&T Corporation | 1,179,880 | ||||||||||||
9,315 | Comerica Incorporated | 403,340 | ||||||||||||
43,443 | Fifth Third Bancorp. | 826,720 | ||||||||||||
41,790 | Huntington BancShares Inc. | 367,752 | ||||||||||||
45,853 | KeyCorp. | 574,538 | ||||||||||||
6,070 | M&T Bank Corporation, (2) | 683,057 | ||||||||||||
26,227 | PNC Financial Services Group, Inc. | 1,928,471 | ||||||||||||
70,150 | Regions Financial Corporation | 675,545 | ||||||||||||
26,748 | SunTrust Banks, Inc. | 899,803 | ||||||||||||
92,484 | U.S. Bancorp | 3,455,202 | ||||||||||||
243,293 | Wells Fargo & Company | 10,386,178 | ||||||||||||
9,141 | Zions Bancorporation, (2) | 259,330 | ||||||||||||
Total Commercial Banks | 21,639,816 | |||||||||||||
Commercial Services & Supplies – 0.5% | ||||||||||||||
10,944 | ADT Corporation | 474,641 | ||||||||||||
5,202 | Cintas Corporation | 279,712 | ||||||||||||
8,304 | Iron Mountain Inc. | 220,388 | ||||||||||||
10,152 | Pitney Bowes Inc., (2) | 216,644 | ||||||||||||
14,758 | Republic Services, Inc. | 493,950 | ||||||||||||
4,272 | Stericycle Inc., (3) | 496,406 | ||||||||||||
23,130 | Tyco International Ltd. | 845,402 | ||||||||||||
21,703 | Waste Management, Inc., (2) | 944,949 | ||||||||||||
Total Commercial Services & Supplies | 3,972,092 |
26 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Communications Equipment – 1.8% | ||||||||||||||
264,638 | Cisco Systems, Inc. | $ | 5,954,355 | |||||||||||
3,901 | F5 Networks, Inc., (3) | 317,971 | ||||||||||||
5,600 | Harris Corporation | 346,976 | ||||||||||||
11,670 | JDS Uniphase Corporation, (2), (3) | 152,760 | ||||||||||||
25,590 | Juniper Networks Inc., (3) | 476,998 | ||||||||||||
13,697 | Motorola Solutions Inc. | 856,336 | ||||||||||||
85,274 | QUALCOMM, Inc. | 5,923,985 | ||||||||||||
Total Communications Equipment | 14,029,381 | |||||||||||||
Computers & Peripherals – 4.0% | ||||||||||||||
45,894 | Apple, Inc. | 23,972,731 | ||||||||||||
104,448 | EMC Corporation | 2,514,063 | ||||||||||||
96,917 | Hewlett-Packard Company | 2,361,867 | ||||||||||||
17,887 | NetApp, Inc. | 694,194 | ||||||||||||
12,003 | SanDisk Corporation | 834,209 | ||||||||||||
15,852 | Seagate Technology | 771,675 | ||||||||||||
10,750 | Western Digital Corporation | 748,523 | ||||||||||||
Total Computers & Peripherals | 31,897,262 | |||||||||||||
Construction & Engineering – 0.2% | ||||||||||||||
8,066 | Fluor Corporation, (2) | 598,659 | ||||||||||||
6,469 | Jacobs Engineering Group, Inc., (3) | 393,445 | ||||||||||||
10,584 | Quanta Services Incorporated, (3) | 319,743 | ||||||||||||
Total Construction & Engineering | 1,311,847 | |||||||||||||
Construction Materials – 0.0% | ||||||||||||||
6,445 | Vulcan Materials Company | 345,130 | ||||||||||||
Consumer Finance – 1.0% | ||||||||||||||
47,699 | American Express Company | 3,901,778 | ||||||||||||
28,898 | Capital One Financial Corporation | 1,984,426 | ||||||||||||
24,588 | Discover Financial Services | 1,275,625 | ||||||||||||
22,500 | SLM Corporation | 570,825 | ||||||||||||
Total Consumer Finance | 7,732,654 | |||||||||||||
Containers & Packaging – 0.2% | ||||||||||||||
5,181 | Avery Dennison Corporation | 244,129 | ||||||||||||
7,417 | Ball Corporation | 362,617 | ||||||||||||
3,602 | Bemis Company, Inc., (2) | 143,720 | ||||||||||||
9,091 | MeadWestvaco Corporation, (2) | 316,821 | ||||||||||||
8,143 | Owens-Illinois, Inc., (3) | 258,866 | ||||||||||||
9,788 | Sealed Air Corporation | 295,402 | ||||||||||||
Total Containers & Packaging | 1,621,555 |
Nuveen Investments | 27 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Distributors – 0.1% | ||||||||||||||
7,686 | Genuine Parts Company, (2) | $ | 605,887 | |||||||||||
Diversified Consumer Services – 0.0% | ||||||||||||||
13,465 | H & R Block Inc. | 382,945 | ||||||||||||
Diversified Financial Services – 5.0% | ||||||||||||||
537,034 | Bank of America Corporation | 7,496,995 | ||||||||||||
90,526 | Berkshire Hathaway Inc., Class B, (3) | 10,417,732 | ||||||||||||
150,820 | Citigroup Inc. | 7,357,000 | ||||||||||||
15,232 | CME Group, Inc. | 1,130,367 | ||||||||||||
3,606 | Intercontinental Exchange, Inc., (2), (3) | 694,984 | ||||||||||||
189,966 | JP Morgan Chase & Co. | 9,790,848 | ||||||||||||
14,558 | Leucadia National Corporation | 412,574 | ||||||||||||
13,936 | McGraw-Hill Companies, Inc. | 971,060 | ||||||||||||
9,618 | Moody’s Corporation | 679,608 | ||||||||||||
5,839 | NASDAQ Stock Market, Inc. | 206,876 | ||||||||||||
12,061 | New York Stock Exchange Euronext | 530,925 | ||||||||||||
Total Diversified Financial Services | 39,688,969 | |||||||||||||
Diversified Telecommunication Services – 2.4% | ||||||||||||||
272,560 | AT&T Inc., (2) | 9,866,672 | ||||||||||||
31,079 | CenturyLink Inc., (2) | 1,052,335 | ||||||||||||
49,547 | Frontier Communications Corporation, (2) | 218,502 | ||||||||||||
141,863 | Verizon Communications Inc. | 7,165,500 | ||||||||||||
30,961 | Windstream Holdings Inc., (2) | 264,717 | ||||||||||||
Total Diversified Telecommunication Services | 18,567,726 | |||||||||||||
Electric Utilities – 1.7% | ||||||||||||||
24,105 | American Electric Power Company, Inc. | 1,129,078 | ||||||||||||
34,974 | Duke Energy Corporation | 2,508,685 | ||||||||||||
16,170 | Edison International | 792,815 | ||||||||||||
8,840 | Entergy Corporation | 572,125 | ||||||||||||
42,436 | Exelon Corporation, (2) | 1,211,123 | ||||||||||||
20,756 | FirstEnergy Corp. | 786,030 | ||||||||||||
21,038 | NextEra Energy Inc. | 1,782,971 | ||||||||||||
14,739 | Northeast Utilities | 632,156 | ||||||||||||
12,806 | Pepco Holdings, Inc., (2) | 246,900 | ||||||||||||
5,894 | Pinnacle West Capital Corporation | 330,241 | ||||||||||||
30,164 | PPL Corporation | 923,923 | ||||||||||||
43,128 | Southern Company | 1,764,366 | ||||||||||||
25,270 | Xcel Energy, Inc. | 729,292 | ||||||||||||
Total Electric Utilities | 13,409,705 |
28 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Electrical Equipment – 0.7% | ||||||||||||||
23,205 | Eaton PLC | $ | 1,637,345 | |||||||||||
35,839 | Emerson Electric Company | 2,400,138 | ||||||||||||
6,938 | Rockwell Automation, Inc., (2) | 766,025 | ||||||||||||
4,908 | Roper Industries Inc. , (2) | 622,383 | ||||||||||||
Total Electrical Equipment | 5,425,891 | |||||||||||||
Electronic Equipment & Instruments – 0.5% | ||||||||||||||
7,927 | Amphenol Corporation, Class A | 636,459 | ||||||||||||
73,079 | Corning Incorporated, (2) | 1,248,920 | ||||||||||||
7,195 | FLIR Systems Inc. | 204,914 | ||||||||||||
9,129 | Jabil Circuit Inc. | 190,431 | ||||||||||||
7,424 | Molex Inc. | 286,566 | ||||||||||||
20,585 | TE Connectivity Limited | 1,059,922 | ||||||||||||
Total Electronic Equipment & Instruments | 3,627,212 | |||||||||||||
Energy Equipment & Services – 1.9% | ||||||||||||||
21,928 | Baker Hughes Incorporated | 1,273,797 | ||||||||||||
12,301 | Cooper Cameron Corporation, (3) | 674,833 | ||||||||||||
3,450 | Diamond Offshore Drilling, Inc. | 213,659 | ||||||||||||
11,538 | Ensco PLC | 665,166 | ||||||||||||
11,800 | FMC Technologies Inc., (3) | 596,490 | ||||||||||||
42,871 | Halliburton Company | 2,273,449 | ||||||||||||
5,274 | Helmerich & Payne Inc. | 408,999 | ||||||||||||
15,063 | Nabors Industries Inc. | 263,301 | ||||||||||||
21,175 | National-Oilwell Varco Inc. | 1,718,987 | ||||||||||||
12,543 | Noble Corporation | 472,871 | ||||||||||||
6,166 | Rowan Companies Inc., (2), (3) | 222,469 | ||||||||||||
65,924 | Schlumberger Limited | 6,178,397 | ||||||||||||
7,693 | Transocean Inc., (2) | 362,110 | ||||||||||||
Total Energy Equipment & Services | 15,324,528 | |||||||||||||
Food & Staples Retailing – 2.4% | ||||||||||||||
21,621 | Costco Wholesale Corporation | 2,551,278 | ||||||||||||
61,106 | CVS Caremark Corporation | 3,804,460 | ||||||||||||
25,731 | Kroger Co., (2) | 1,102,316 | ||||||||||||
11,891 | Safeway Inc. | 414,996 | ||||||||||||
29,084 | Sysco Corporation | 940,577 | ||||||||||||
42,685 | Walgreen Co. | 2,528,659 | ||||||||||||
83,015 | Wal-Mart Stores, Inc. | 6,371,401 | ||||||||||||
17,109 | Whole Foods Market, Inc. | 1,080,091 | ||||||||||||
Total Food & Staples Retailing | 18,793,778 |
Nuveen Investments | 29 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Food Products – 1.6% | ||||||||||||||
32,688 | Archer-Daniels-Midland Company | $ | 1,336,939 | |||||||||||
8,895 | Campbell Soup Company | 378,660 | ||||||||||||
20,541 | ConAgra Foods, Inc. | 653,409 | ||||||||||||
32,092 | General Mills, Inc. | 1,618,079 | ||||||||||||
7,451 | Hershey Foods Corporation | 739,437 | ||||||||||||
6,672 | Hormel Foods Corporation | 289,965 | ||||||||||||
5,323 | JM Smucker Company | 591,971 | ||||||||||||
12,393 | Kellogg Company, (2) | 783,857 | ||||||||||||
29,409 | Kraft Foods Inc. | 1,599,261 | ||||||||||||
6,585 | McCormick & Company, Inc., (2) | 455,353 | ||||||||||||
10,052 | Mead Johnson Nutrition Company, Class A Shares | 820,846 | ||||||||||||
88,260 | Mondelez International Inc. | 2,969,066 | ||||||||||||
14,077 | Tyson Foods, Inc., Class A | 389,511 | ||||||||||||
Total Food Products | 12,626,354 | |||||||||||||
Gas Utilities – 0.1% | ||||||||||||||
5,075 | AGL Resources Inc. | 242,890 | ||||||||||||
7,868 | ONEOK, Inc. | 444,542 | ||||||||||||
Total Gas Utilities | 687,432 | |||||||||||||
Health Care Equipment & Supplies – 2.1% | ||||||||||||||
77,957 | Abbott Laboratories | 2,849,328 | ||||||||||||
27,096 | Baxter International, Inc. | 1,784,814 | ||||||||||||
9,627 | Becton, Dickinson and Company | 1,012,087 | ||||||||||||
67,372 | Boston Scientific Corporation, (3) | 787,579 | ||||||||||||
3,776 | C. R. Bard, Inc., (2) | 514,367 | ||||||||||||
11,048 | CareFusion Corporation, (3) | 428,331 | ||||||||||||
23,429 | Covidien PLC | 1,502,033 | ||||||||||||
7,090 | DENTSPLY International Inc., (2) | 333,939 | ||||||||||||
5,664 | Edwards Lifesciences Corporation, (2), (3) | 369,236 | ||||||||||||
1,992 | Intuitive Surgical, Inc., (3) | 740,028 | ||||||||||||
50,195 | Medtronic, Inc. | 2,881,193 | ||||||||||||
14,039 | Saint Jude Medical Inc. | 805,698 | ||||||||||||
14,353 | Stryker Corporation | 1,060,113 | ||||||||||||
5,415 | Varian Medical Systems, Inc., (3) | 393,021 | ||||||||||||
8,406 | Zimmer Holdings, Inc. | 735,273 | ||||||||||||
Total Health Care Equipment & Supplies | 16,197,040 | |||||||||||||
Health Care Providers & Services – 2.0% | ||||||||||||||
18,875 | Aetna Inc. | 1,183,463 | ||||||||||||
11,423 | AmerisourceBergen Corporation | 746,265 | ||||||||||||
16,918 | Cardinal Health, Inc. | 992,410 |
30 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Health Care Providers & Services (continued) | ||||||||||||||
14,193 | CIGNA Corporation | $ | 1,092,577 | |||||||||||
8,376 | Davita Inc., (3) | 470,815 | ||||||||||||
40,623 | Express Scripts, Holding Company, (3) | 2,539,750 | ||||||||||||
7,859 | Humana Inc. | 724,207 | ||||||||||||
4,620 | Laboratory Corporation of America Holdings, (2), (3) | 466,158 | ||||||||||||
11,558 | McKesson HBOC Inc. | 1,806,978 | ||||||||||||
4,151 | Patterson Companies, Inc. | 176,459 | ||||||||||||
7,852 | Quest Diagnostics Incorporated | 470,413 | ||||||||||||
5,175 | Tenet Healthcare Corporation, (3) | 244,208 | ||||||||||||
50,869 | UnitedHealth Group Incorporated | 3,472,318 | ||||||||||||
15,090 | Wellpoint Inc. | 1,279,632 | ||||||||||||
Total Health Care Providers & Services | 15,665,653 | |||||||||||||
Health Care Technology – 0.1% | ||||||||||||||
14,532 | Cerner Corporation, (2), (3) | 814,228 | ||||||||||||
Hotels, Restaurants & Leisure – 1.8% | ||||||||||||||
22,049 | Carnival Corporation, ADR, (2) | 763,998 | ||||||||||||
1,541 | Chipotle Mexican Grill, (2), (3) | 812,061 | ||||||||||||
6,694 | Darden Restaurants, Inc. | 344,942 | ||||||||||||
13,683 | International Game Technology | 257,240 | ||||||||||||
12,091 | Marriott International, Inc., Class A | 545,062 | ||||||||||||
49,770 | McDonald’s Corporation | 4,803,800 | ||||||||||||
37,189 | Starbucks Corporation | 3,014,168 | ||||||||||||
9,614 | Starwood Hotels & Resorts Worldwide, Inc. | 707,783 | ||||||||||||
7,072 | Wyndham Worldwide Corporation | 469,581 | ||||||||||||
3,960 | Wynn Resorts Ltd | 658,350 | ||||||||||||
22,370 | YUM! Brands, Inc. | 1,512,659 | ||||||||||||
Total Hotels, Restaurants & Leisure | 13,889,644 | |||||||||||||
Household Durables – 0.3% | ||||||||||||||
13,899 | D.R. Horton, Inc., (2) | 263,386 | ||||||||||||
5,867 | Garmin Limited, (2) | 274,282 | ||||||||||||
3,371 | Harman International Industries Inc. | 273,118 | ||||||||||||
7,591 | Leggett and Platt Inc., (2) | 225,756 | ||||||||||||
8,820 | Lennar Corporation, Class A | 313,551 | ||||||||||||
14,214 | Newell Rubbermaid Inc. | 421,161 | ||||||||||||
18,268 | Pulte Corporation | 322,430 | ||||||||||||
3,898 | Whirlpool Corporation | 569,147 | ||||||||||||
Total Household Durables | 2,662,831 | |||||||||||||
Household Products – 2.1% | ||||||||||||||
6,778 | Clorox Company, (2) | 611,308 |
Nuveen Investments | 31 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Household Products (continued) | ||||||||||||||
43,641 | Colgate-Palmolive Company | $ | 2,824,882 | |||||||||||
19,238 | Kimberly-Clark Corporation | 2,077,704 | ||||||||||||
135,577 | Procter & Gamble Company | 10,947,843 | ||||||||||||
Total Household Products | 16,461,737 | |||||||||||||
Independent Power Producers & Energy Traders – 0.1% | ||||||||||||||
31,216 | AES Corporation | 439,833 | ||||||||||||
16,047 | NRG Energy Inc. | 457,821 | ||||||||||||
Total Independent Power Producers & Energy Traders | 897,654 | |||||||||||||
Industrial Conglomerates – 2.5% | ||||||||||||||
31,506 | 3M Co. | 3,965,030 | ||||||||||||
28,778 | Danaher Corporation | 2,074,606 | ||||||||||||
516,090 | General Electric Company | 13,490,593 | ||||||||||||
Total Industrial Conglomerates | 19,530,229 | |||||||||||||
Insurance – 3.0% | ||||||||||||||
16,841 | Ace Limited | 1,607,305 | ||||||||||||
23,215 | AFLAC Incorporated | 1,508,511 | ||||||||||||
23,696 | Allstate Corporation | 1,257,310 | ||||||||||||
73,274 | American International Group | 3,784,602 | ||||||||||||
15,465 | AON PLC | 1,223,127 | ||||||||||||
3,912 | Assurant Inc. | 228,774 | ||||||||||||
12,953 | Chubb Corporation | 1,192,712 | ||||||||||||
7,292 | Cincinnati Financial Corporation | 364,600 | ||||||||||||
24,455 | Genworth Financial Inc., Class A, (3) | 355,331 | ||||||||||||
21,669 | Hartford Financial Services Group, Inc., (2) | 730,245 | ||||||||||||
13,473 | Lincoln National Corporation | 611,809 | ||||||||||||
15,365 | Loews Corporation | 742,283 | ||||||||||||
27,216 | Marsh & McLennan Companies, Inc. | 1,246,493 | ||||||||||||
54,278 | MetLife, Inc. | 2,567,892 | ||||||||||||
13,689 | Principal Financial Group, Inc., (2) | 649,680 | ||||||||||||
27,575 | Progressive Corporation, (2) | 716,123 | ||||||||||||
23,079 | Prudential Financial, Inc. | 1,878,400 | ||||||||||||
4,648 | Torchmark Corporation, (2) | 338,653 | ||||||||||||
18,758 | Travelers Companies, Inc. | 1,618,815 | ||||||||||||
13,390 | Unum Group | 424,999 | ||||||||||||
14,640 | XL Capital Ltd, Class A | 447,545 | ||||||||||||
Total Insurance | 23,495,209 | |||||||||||||
Internet & Catalog Retail – 1.4% | ||||||||||||||
18,048 | Amazon.com, Inc., (3) | 6,570,013 | ||||||||||||
4,637 | Expedia, Inc. | 273,027 |
32 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Internet & Catalog Retail (continued) | ||||||||||||||
2,936 | NetFlix.com Inc., (3) | $ | 946,801 | |||||||||||
2,581 | priceline.com Incorporated, (3) | 2,719,935 | ||||||||||||
5,461 | TripAdvisor Inc., (2), (3) | 451,679 | ||||||||||||
Total Internet & Catalog Retail | 10,961,455 | |||||||||||||
Internet Software & Services – 2.4% | ||||||||||||||
8,829 | Akamai Technologies, Inc., (2), (3) | 395,009 | ||||||||||||
57,914 | eBay Inc., (3) | 3,052,647 | ||||||||||||
13,253 | Google Inc., Class A, (3) | 13,658,277 | ||||||||||||
7,571 | VeriSign, Inc., (2), (3) | 410,954 | ||||||||||||
48,100 | Yahoo! Inc., (3) | 1,583,933 | ||||||||||||
Total Internet Software & Services | 19,100,820 | |||||||||||||
IT Services – 3.4% | ||||||||||||||
31,980 | Accenture Limited | 2,350,530 | ||||||||||||
24,073 | Automatic Data Processing, Inc. | 1,804,753 | ||||||||||||
14,979 | Cognizant Technology Solutions Corporation, Class A, (3) | 1,302,124 | ||||||||||||
7,618 | Computer Sciences Corporation | 375,263 | ||||||||||||
12,678 | Fidelity National Information Services | 618,053 | ||||||||||||
6,627 | Fiserv, Inc., (3) | 694,046 | ||||||||||||
51,996 | International Business Machines Corporation (IBM) | 9,318,203 | ||||||||||||
5,241 | MasterCard, Inc. | 3,758,321 | ||||||||||||
16,066 | Paychex, Inc. | 678,949 | ||||||||||||
8,230 | Teradata Corporation, (3) | 362,696 | ||||||||||||
7,974 | Total System Services Inc. | 237,864 | ||||||||||||
25,596 | Visa Inc., (2) | 5,033,965 | ||||||||||||
28,352 | Western Union Company | 482,551 | ||||||||||||
Total IT Services | 27,017,318 | |||||||||||||
Leisure Equipment & Products – 0.1% | ||||||||||||||
5,929 | Hasbro, Inc. | 306,233 | ||||||||||||
17,098 | Mattel, Inc., (2) | 758,638 | ||||||||||||
Total Leisure Equipment & Products | 1,064,871 | |||||||||||||
Life Sciences Tools & Services – 0.5% | ||||||||||||||
17,221 | Agilent Technologies, Inc. | 874,138 | ||||||||||||
8,540 | Life Technologies Corporation, (3) | 643,147 | ||||||||||||
5,645 | Perkinelmer Inc. | 214,736 | ||||||||||||
17,749 | Thermo Fisher Scientific, Inc., (2) | 1,735,497 | ||||||||||||
4,262 | Waters Corporation, (2), (3) | 430,121 | ||||||||||||
Total Life Sciences Tools & Services | 3,897,639 | |||||||||||||
Machinery – 1.7% | ||||||||||||||
32,512 | Caterpillar Inc. | 2,710,200 |
Nuveen Investments | 33 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Machinery (continued) | ||||||||||||||
8,763 | Cummins Inc. | $ | 1,113,076 | |||||||||||
19,335 | Deere & Company | 1,582,376 | ||||||||||||
8,670 | Dover Corporation, (2) | 795,819 | ||||||||||||
7,473 | Flowserve Corporation, (2) | 519,149 | ||||||||||||
20,613 | Illinois Tool Works, Inc. | 1,624,098 | ||||||||||||
13,678 | Ingersoll Rand Company Limited, Class A | 923,675 | ||||||||||||
5,271 | Joy Global Inc., (2) | 299,129 | ||||||||||||
17,543 | PACCAR Inc. | 975,391 | ||||||||||||
5,513 | Pall Corporation | 443,907 | ||||||||||||
7,403 | Parker Hannifin Corporation | 864,078 | ||||||||||||
10,231 | Pentair Limited | 686,398 | ||||||||||||
2,892 | Snap-on Incorporated | 300,970 | ||||||||||||
7,953 | Stanley Black & Decker Inc. | 629,003 | ||||||||||||
9,240 | Xylem Inc., (2) | 318,780 | ||||||||||||
Total Machinery | 13,786,049 | |||||||||||||
Media – 3.8% | ||||||||||||||
10,913 | Cablevision Systems Corporation | 169,697 | ||||||||||||
29,040 | CBS Corporation, Class B | 1,717,426 | ||||||||||||
131,004 | Comcast Corporation, Class A | 6,233,170 | ||||||||||||
28,446 | DirecTV, (3) | 1,777,591 | ||||||||||||
12,173 | Discovery Communications inc., Class A Shares, (2), (3) | 1,082,423 | ||||||||||||
11,893 | Gannett Company Inc., (2) | 329,079 | ||||||||||||
21,422 | Interpublic Group Companies, Inc. | 359,890 | ||||||||||||
24,812 | News Corporation, Class A Shares, (3) | 436,691 | ||||||||||||
12,974 | Omnicom Group, Inc. | 883,659 | ||||||||||||
4,272 | Scripps Networks Interactive, Class A Shares, (2) | 343,896 | ||||||||||||
14,668 | Time Warner Cable, Class A | 1,762,360 | ||||||||||||
46,395 | Time Warner Inc. | 3,189,174 | ||||||||||||
99,250 | Twenty First Century Fox Inc., Class A Shares, (2) | 3,382,440 | ||||||||||||
22,602 | Viacom Inc., Class B | 1,882,521 | ||||||||||||
89,608 | Walt Disney Company, (2) | 6,146,213 | ||||||||||||
110 | Washington Post Company | 70,765 | ||||||||||||
Total Media | 29,766,995 | |||||||||||||
Metals & Mining – 0.6% | ||||||||||||||
53,074 | Alcoa Inc. | 491,996 | ||||||||||||
5,563 | Allegheny Technologies, Inc., (2) | 184,135 | ||||||||||||
7,841 | Cliffs Natural Resources Inc., (2) | 201,357 | ||||||||||||
49,142 | Freeport-McMoRan Copper & Gold, Inc. | 1,806,460 | ||||||||||||
24,654 | Newmont Mining Corporation | 672,068 |
34 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Metals & Mining (continued) | ||||||||||||||
15,767 | Nucor Corporation | $ | 816,258 | |||||||||||
7,752 | United States Steel Corporation | 192,947 | ||||||||||||
Total Metals & Mining | 4,365,221 | |||||||||||||
Multiline Retail – 0.7% | ||||||||||||||
14,111 | Dollar General Corporation, (3) | 815,334 | ||||||||||||
11,276 | Dollar Tree Stores Inc., (2), (3) | 658,518 | ||||||||||||
4,771 | Family Dollar Stores, Inc. | 328,626 | ||||||||||||
8,053 | J.C. Penney Company, Inc., (2), (3) | 60,398 | ||||||||||||
10,502 | Kohl’s Corporation, (2) | 596,514 | ||||||||||||
19,618 | Macy’s, Inc. | 904,586 | ||||||||||||
7,430 | Nordstrom, Inc., (2) | 449,292 | ||||||||||||
32,301 | Target Corporation, (2) | 2,092,782 | ||||||||||||
Total Multiline Retail | 5,906,050 | |||||||||||||
Multi-Utilities – 1.2% | ||||||||||||||
12,557 | Ameren Corporation | 454,312 | ||||||||||||
22,133 | CenterPoint Energy, Inc. | 544,472 | ||||||||||||
13,707 | CMS Energy Corporation | 376,394 | ||||||||||||
14,537 | Consolidated Edison, Inc. | 846,344 | ||||||||||||
28,604 | Dominion Resources, Inc. | 1,823,505 | ||||||||||||
8,564 | DTE Energy Company | 592,115 | ||||||||||||
4,057 | Integrys Energy Group, Inc., (2) | 238,065 | ||||||||||||
16,104 | NiSource Inc. | 507,598 | ||||||||||||
21,770 | PG&E Corporation | 911,075 | ||||||||||||
25,111 | Public Service Enterprise Group Incorporated | 841,219 | ||||||||||||
6,971 | Scana Corporation | 325,058 | ||||||||||||
11,230 | Sempra Energy | 1,023,502 | ||||||||||||
10,569 | TECO Energy, Inc., (2) | 181,470 | ||||||||||||
11,366 | Wisconsin Energy Corporation | 478,622 | ||||||||||||
Total Multi-Utilities | 9,143,751 | |||||||||||||
Office Electronics – 0.1% | ||||||||||||||
60,741 | Xerox Corporation | 603,766 | ||||||||||||
Oil, Gas & Consumable Fuels – 8.4% | ||||||||||||||
24,845 | Anadarko Petroleum Corporation | 2,367,480 | ||||||||||||
19,444 | Apache Corporation | 1,726,627 | ||||||||||||
20,890 | Cabot Oil & Gas Corporation | 737,835 | ||||||||||||
25,843 | Chesapeake Energy Corporation | 722,570 | ||||||||||||
96,421 | Chevron Corporation | 11,566,663 | ||||||||||||
60,600 | ConocoPhillips | 4,441,980 | ||||||||||||
11,323 | CONSOL Energy Inc., (2) | 413,290 |
Nuveen Investments | 35 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||
19,327 | Denbury Resources Inc., (3) | $ | 367,020 | |||||||||||
18,741 | Devon Energy Corporation | 1,184,806 | ||||||||||||
13,488 | EOG Resources, Inc. | 2,406,259 | ||||||||||||
7,473 | EQT Corporation | 639,764 | ||||||||||||
222,375 | Exxon Mobil Corporation | 19,929,248 | ||||||||||||
14,748 | Hess Corporation | 1,197,538 | ||||||||||||
31,356 | Kinder Morgan, Inc. | 1,107,180 | ||||||||||||
35,125 | Marathon Oil Corporation | 1,238,508 | ||||||||||||
16,449 | Marathon Petroleum Corporation | 1,178,735 | ||||||||||||
8,990 | Murphy Oil Corporation, (2) | 542,277 | ||||||||||||
6,711 | Newfield Exploration Company, (3) | 204,350 | ||||||||||||
17,825 | Noble Energy, Inc. | 1,335,627 | ||||||||||||
39,979 | Occidental Petroleum Corporation | 3,841,182 | ||||||||||||
13,383 | Peabody Energy Corporation | 260,701 | ||||||||||||
30,846 | Phillips 66 | 1,987,408 | ||||||||||||
6,621 | Pioneer Natural Resources Company | 1,355,848 | ||||||||||||
8,862 | QEP Resources Inc. | 292,978 | ||||||||||||
8,082 | Range Resources Corporation, (2) | 611,888 | ||||||||||||
17,422 | Southwestern Energy Company, (3) | 648,447 | ||||||||||||
33,161 | Spectra Energy Corporation | 1,179,537 | ||||||||||||
6,820 | Tesoro Corporation | 333,430 | ||||||||||||
27,443 | Valero Energy Corporation | 1,129,828 | ||||||||||||
33,825 | Williams Companies, Inc. | 1,207,891 | ||||||||||||
10,357 | WPX Energy Inc., (3) | 229,304 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 66,386,199 | |||||||||||||
Paper & Forest Products – 0.1% | ||||||||||||||
21,898 | International Paper Company | 976,870 | ||||||||||||
Personal Products – 0.2% | ||||||||||||||
21,456 | Avon Products, Inc. | 375,480 | ||||||||||||
11,897 | Estee Lauder Companies Inc., Class A | 844,211 | ||||||||||||
Total Personal Products | 1,219,691 | |||||||||||||
Pharmaceuticals – 5.8% | ||||||||||||||
78,453 | AbbVie Inc. | 3,801,048 | ||||||||||||
6,344 | Actavis Inc., (3) | 980,656 | ||||||||||||
15,265 | Allergan, Inc. | 1,383,162 | ||||||||||||
81,266 | Bristol-Myers Squibb Company | 4,268,090 | ||||||||||||
49,546 | Eli Lilly and Company | 2,468,382 | ||||||||||||
11,631 | Forest Laboratories, Inc., (3) | 547,006 | ||||||||||||
8,210 | Hospira Inc., (2), (3) | 332,669 |
36 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Pharmaceuticals (continued) | ||||||||||||||
138,737 | Johnson & Johnson | $ | 12,848,434 | |||||||||||
150,006 | Merck & Company Inc. | 6,763,771 | ||||||||||||
19,632 | Mylan Laboratories Inc., (2), (3) | 743,464 | ||||||||||||
4,384 | Perrigo Company, (2) | 604,510 | ||||||||||||
350,777 | Pfizer Inc. | 10,761,838 | ||||||||||||
21,570 | Zoetis Incorporated | 682,906 | ||||||||||||
Total Pharmaceuticals | 46,185,936 | |||||||||||||
Professional Services – 0.1% | ||||||||||||||
2,029 | Dun and Bradstreet Inc. | 220,735 | ||||||||||||
5,979 | Equifax Inc. | 386,662 | ||||||||||||
6,926 | Robert Half International Inc. | 266,859 | ||||||||||||
Total Professional Services | 874,256 | |||||||||||||
Real Estate Investment Trust – 1.9% | ||||||||||||||
19,609 | American Tower REIT Inc. | 1,555,974 | ||||||||||||
7,519 | Apartment Investment & Management Company, Class A, (2) | 210,382 | ||||||||||||
5,886 | AvalonBay Communities, Inc., (2) | 736,044 | ||||||||||||
7,526 | Boston Properties, Inc. | 778,941 | ||||||||||||
15,899 | Equity Residential | 832,472 | ||||||||||||
22,502 | Health Care Property Investors Inc. | 933,833 | ||||||||||||
13,499 | Health Care REIT, Inc., (2) | 875,410 | ||||||||||||
36,067 | Host Hotels & Resorts Inc., (2) | 669,043 | ||||||||||||
21,297 | Kimco Realty Corporation, (2) | 457,460 | ||||||||||||
2,377 | Macerich Company | 140,742 | ||||||||||||
8,400 | Plum Creek Timber Company | 381,360 | ||||||||||||
24,508 | Prologis Inc. | 979,095 | ||||||||||||
7,465 | Public Storage, Inc. | 1,246,431 | ||||||||||||
15,568 | Simon Property Group, Inc. | 2,406,034 | ||||||||||||
14,485 | Ventas Inc., (2) | 945,001 | ||||||||||||
8,407 | Vornado Realty Trust | 748,727 | ||||||||||||
27,064 | Weyerhaeuser Company | 822,746 | ||||||||||||
Total Real Estate Investment Trust | 14,719,695 | |||||||||||||
Real Estate Management & Development – 0.0% | ||||||||||||||
15,099 | CBRE Group Inc., (3) | 350,750 | ||||||||||||
Road & Rail – 0.9% | ||||||||||||||
50,665 | CSX Corporation | 1,320,330 | ||||||||||||
5,467 | Kansas City Southern Industries | 664,350 | ||||||||||||
15,610 | Norfolk Southern Corporation | 1,342,772 | ||||||||||||
2,554 | Ryder System, Inc. | 168,130 | ||||||||||||
23,292 | Union Pacific Corporation | 3,526,409 | ||||||||||||
Total Road & Rail | 7,021,991 |
Nuveen Investments | 37 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Semiconductors & Equipment – 2.0% | ||||||||||||||
15,870 | Altera Corporation | $ | 533,232 | |||||||||||
15,187 | Analog Devices, Inc. | 748,719 | ||||||||||||
59,561 | Applied Materials, Inc. | 1,063,164 | ||||||||||||
25,982 | Broadcom Corporation, Class A | 694,239 | ||||||||||||
3,456 | First Solar Inc., (3) | 173,733 | ||||||||||||
245,480 | Intel Corporation | 5,997,076 | ||||||||||||
8,247 | KLA-Tencor Corporation | 541,003 | ||||||||||||
8,059 | Lam Research Corporation, (3) | 437,040 | ||||||||||||
12,035 | Linear Technology Corporation, (2) | 495,120 | ||||||||||||
27,284 | LSI Logic Corporation | 231,368 | ||||||||||||
10,110 | Microchip Technology Incorporated, (2) | 434,326 | ||||||||||||
50,713 | Micron Technology, Inc., (3) | 896,606 | ||||||||||||
28,684 | NVIDIA Corporation, (2) | 435,423 | ||||||||||||
9,445 | Teradyne Inc., (2), (3) | 165,193 | ||||||||||||
54,833 | Texas Instruments Incorporated | 2,307,373 | ||||||||||||
12,981 | Xilinx, Inc. | 589,597 | ||||||||||||
Total Semiconductors & Equipment | 15,743,212 | |||||||||||||
Software – 3.3% | ||||||||||||||
24,757 | Adobe Systems Incorporated, (3) | 1,341,829 | ||||||||||||
11,153 | Autodesk, Inc., (3) | 445,116 | ||||||||||||
16,519 | CA Inc. | 524,643 | ||||||||||||
9,251 | Citrix Systems, (3) | 525,272 | ||||||||||||
14,894 | Electronic Arts Inc., (3) | 390,968 | ||||||||||||
13,827 | Intuit, Inc., (2) | 987,386 | ||||||||||||
374,158 | Microsoft Corporation | 13,226,485 | ||||||||||||
183,279 | Oracle Corporation | 6,139,847 | ||||||||||||
9,589 | Red Hat, Inc., (3) | 414,916 | ||||||||||||
26,749 | Salesforce.com, Inc., (2), (3) | 1,427,327 | ||||||||||||
34,205 | Symantec Corporation | 777,822 | ||||||||||||
Total Software | 26,201,611 | |||||||||||||
Specialty Retail – 2.3% | ||||||||||||||
3,638 | Abercrombie & Fitch Co., Class A, (2) | 136,352 | ||||||||||||
1,921 | AutoNation Inc., (3) | 92,650 | ||||||||||||
1,804 | AutoZone, Inc., (2), (3) | 784,181 | ||||||||||||
11,223 | Bed Bath and Beyond Inc., (2), (3) | 867,762 | ||||||||||||
13,201 | Best Buy Co., Inc. | 565,003 | ||||||||||||
11,325 | CarMax, Inc., (2), (3) | 532,162 | ||||||||||||
6,015 | GameStop Corporation | 329,742 | ||||||||||||
14,753 | Gap, Inc., (2) | 545,713 |
38 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Specialty Retail (continued) | ||||||||||||||
74,209 | Home Depot, Inc. | $ | 5,780,139 | |||||||||||
11,879 | L Brands Inc., (2) | 743,744 | ||||||||||||
55,091 | Lowe’s Companies, Inc. | 2,742,430 | ||||||||||||
5,524 | O’Reilly Automotive Inc., (3) | 683,926 | ||||||||||||
5,334 | PetSmart Inc. | 388,102 | ||||||||||||
11,037 | Ross Stores, Inc. | 853,712 | ||||||||||||
33,446 | Staples, Inc., (2) | 539,150 | ||||||||||||
5,914 | Tiffany & Co. | 468,211 | ||||||||||||
36,194 | TJX Companies, Inc. | 2,200,233 | ||||||||||||
5,431 | Urban Outfitters, Inc., (3) | 205,726 | ||||||||||||
Total Specialty Retail | 18,458,938 | |||||||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||||||||
13,936 | Coach, Inc. | 706,276 | ||||||||||||
2,605 | Fossil Group Inc., (3) | 330,679 | ||||||||||||
8,897 | Michael Kors Holdings Limited, (3) | 684,624 | ||||||||||||
36,009 | Nike, Inc., Class B | 2,728,042 | ||||||||||||
3,109 | PVH Corporation | 387,288 | ||||||||||||
3,016 | Ralph Lauren Corporation | 499,570 | ||||||||||||
4,376 | VF Corporation | 940,840 | ||||||||||||
Total Textiles, Apparel & Luxury Goods | 6,277,319 | |||||||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||||||||
24,603 | Hudson City Bancorp, Inc. | 220,935 | ||||||||||||
17,363 | People’s United Financial, Inc. | 250,548 | ||||||||||||
Total Thrifts & Mortgage Finance | 471,483 | |||||||||||||
Tobacco – 1.6% | ||||||||||||||
99,753 | Altria Group, Inc. | 3,713,804 | ||||||||||||
18,828 | Lorillard Inc., (2) | 960,412 | ||||||||||||
81,784 | Philip Morris International | 7,288,590 | ||||||||||||
15,970 | Reynolds American Inc. | 820,379 | ||||||||||||
Total Tobacco | 12,783,185 | |||||||||||||
Trading Companies & Distributors – 0.2% | ||||||||||||||
13,398 | Fastenal Company | 667,220 | ||||||||||||
2,968 | W.W. Grainger, Inc. | 798,303 | ||||||||||||
Total Trading Companies & Distributors | 1,465,523 | |||||||||||||
Wireless Telecommunication Services – 0.1% |
| |||||||||||||
15,172 | Crown Castle International Corporation, (3) | 1,153,375 | ||||||||||||
Total Common Stocks (cost $326,783,741) | 778,058,377 |
Nuveen Investments | 39 |
Portfolio of Investments October 31, 2013
Nuveen Equity Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 9.7% |
| |||||||||||||||||||
Money Market Funds – 9.7% |
| |||||||||||||||||||
76,321,947 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 76,321,947 | |||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $76,321,947) |
| 76,321,947 | ||||||||||||||||||
Total Long-Term Investments (cost $403,105,689) |
| 854,380,324 | ||||||||||||||||||
Shares/ Principal Amount (000) | Description (1) | Coupon | Maturity | Rating (6) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 1.5% |
| |||||||||||||||||||
Money Market Funds – 1.1% |
| |||||||||||||||||||
8,391,658 | First American Treasury Obligations Fund, Class Z | 0.000% | (4) | N/A | N/A | $ | 8,391,658 | |||||||||||||
U.S. Government and Agency Obligations – 0.4% |
| |||||||||||||||||||
$ | 3,000 | U.S. Treasury Bills, (7) | 0.000% | 2/13/14 | N/R | 2,999,568 | ||||||||||||||
Total Short-Term Investments (cost $11,391,181) |
| 11,391,226 | ||||||||||||||||||
Total Investments (cost $414,496,871) – 109.7% |
| 865,771,550 | ||||||||||||||||||
Other Assets Less Liabilities – (9.7)% (8) |
| (76,531,546 | ) | |||||||||||||||||
Net Assets – 100% |
| $ | 789,240,004 |
Investments in Derivatives as of October 31, 2013
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
S&P 500 Index | Long | 23 | 12/13 | $ | 10,068,250 | $ | 417,933 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan at the end of the reporting period was $74,229,191. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(6) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(7) | Investment, or portion of investment, segregated as collateral for investments in derivatives. |
(8) | Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period. |
N/A | Not applicable. |
ADR | American Depositary Receipt. |
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
40 | Nuveen Investments |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 122.4% | ||||||||||||||
COMMON STOCKS – 93.7% | ||||||||||||||
Aerospace & Defense – 1.6% | ||||||||||||||
12,489 | Alliant Techsystems Inc. | $ | 1,359,677 | |||||||||||
40,642 | BE Aerospace Inc., (3) | 3,298,505 | ||||||||||||
12,139 | Esterline Technologies Corporation, (3) | 973,062 | ||||||||||||
73,007 | Exelis Inc. | 1,203,885 | ||||||||||||
19,460 | Huntington Ingalls Industries Inc. | 1,392,363 | ||||||||||||
20,019 | Triumph Group Inc. | 1,434,361 | ||||||||||||
Total Aerospace & Defense | 9,661,853 | |||||||||||||
Air Freight & Logistics – 0.1% | ||||||||||||||
40,560 | UTI Worldwide, Inc. | 616,512 | ||||||||||||
Airlines – 0.4% | ||||||||||||||
27,259 | Alaska Air Group, Inc. | 1,926,121 | ||||||||||||
87,586 | JetBlue Airways Corporation, (2), (3) | 620,985 | ||||||||||||
Total Airlines | 2,547,106 | |||||||||||||
Auto Components – 0.3% | ||||||||||||||
55,719 | Gentex Corporation, (2) | 1,640,367 | ||||||||||||
Automobiles – 0.2% | ||||||||||||||
17,084 | Thor Industries, Inc., (2) | 991,043 | ||||||||||||
Biotechnology – 0.5% | ||||||||||||||
21,970 | Cubist Pharmaceuticals Inc., (3) | 1,362,140 | ||||||||||||
17,926 | United Therapeutics Corporation, (2), (3) | 1,586,810 | ||||||||||||
Total Biotechnology | 2,948,950 | |||||||||||||
Building Products – 0.8% | ||||||||||||||
64,036 | Fortune Brands Home & Security | 2,758,671 | ||||||||||||
17,795 | Lennox International Inc. | 1,389,078 | ||||||||||||
17,450 | Smith AO Corporation | 901,293 | ||||||||||||
Total Building Products | 5,049,042 | |||||||||||||
Capital Markets – 2.4% | ||||||||||||||
20,465 | Affiliated Managers Group Inc., (3) | 4,040,610 | ||||||||||||
87,212 | Apollo Investment Corporation, (2) | 743,918 | ||||||||||||
47,114 | Eaton Vance Corporation, (2) | 1,969,836 | ||||||||||||
36,598 | Federated Investors Inc., (2) | 992,538 | ||||||||||||
10,173 | Greenhill & Co Inc. | 521,875 |
Nuveen Investments | 41 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Capital Markets (continued) | ||||||||||||||
59,237 | Janus Capital Group Inc., (2) | $ | 584,669 | |||||||||||
43,893 | Raymond James Financial Inc. | 2,003,715 | ||||||||||||
52,183 | SEI Investments Company | 1,731,954 | ||||||||||||
33,346 | Waddell & Reed Financial, Inc., Class A | 2,059,116 | ||||||||||||
Total Capital Markets | 14,648,231 | |||||||||||||
Chemicals – 2.6% | ||||||||||||||
31,560 | Albemarle Corporation, (2) | 2,088,956 | ||||||||||||
28,519 | Ashland Inc. | 2,639,433 | ||||||||||||
23,279 | Cabot Corporation, (2) | 1,085,034 | ||||||||||||
14,168 | Cytec Industries, Inc. | 1,177,219 | ||||||||||||
20,873 | Interpid Potash Inc., (2) | 309,964 | ||||||||||||
13,528 | Minerals Technologies Inc. | 766,091 | ||||||||||||
4,138 | NewMarket Corporation, (2) | 1,288,408 | ||||||||||||
31,158 | Olin Corporation, (2) | 701,367 | ||||||||||||
51,419 | RPM International, Inc. | 1,990,944 | ||||||||||||
15,085 | Scotts Miracle Gro Company | 885,791 | ||||||||||||
19,419 | Sensient Technologies Corporation | 1,012,312 | ||||||||||||
31,715 | Valspar Corporation | 2,219,099 | ||||||||||||
Total Chemicals | 16,164,618 | |||||||||||||
Commercial Banks – 4.2% | ||||||||||||||
65,082 | Associated Banc-Corp., (2) | 1,058,233 | ||||||||||||
32,504 | BancorpSouth Inc., (2) | 718,338 | ||||||||||||
17,402 | Bank of Hawaii Corporation, (2) | 1,008,968 | ||||||||||||
28,951 | Cathay General Bancorp. | 713,063 | ||||||||||||
18,492 | City National Corporation, (2) | 1,333,458 | ||||||||||||
29,911 | Commerce Bancshares Inc. | 1,376,205 | ||||||||||||
21,597 | Cullen/Frost Bankers, Inc., (2) | 1,528,852 | ||||||||||||
52,844 | East West Bancorp Inc. | 1,780,314 | ||||||||||||
93,609 | First Horizon National Corporation, (2) | 996,936 | ||||||||||||
137,351 | First Niagara Financial Group Inc. | 1,514,982 | ||||||||||||
64,316 | FirstMerit Corporation, (2) | 1,444,537 | ||||||||||||
75,728 | Fulton Financial Corporation, (2) | 924,639 | ||||||||||||
32,939 | Hancock Holding Company, (2) | 1,079,740 | ||||||||||||
22,348 | International Bancshares Corporation, (2) | 510,652 | ||||||||||||
18,245 | Prosperity Bancshares, Inc. | 1,139,400 | ||||||||||||
18,340 | Signature Bank, (3) | 1,867,379 | ||||||||||||
17,493 | SVB Financial Group, (3) | 1,675,480 | ||||||||||||
331,095 | Synovus Financial Corp. | 1,076,059 | ||||||||||||
63,567 | TCF Financial Corporation | 964,947 |
42 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Commercial Banks (continued) | ||||||||||||||
26,062 | Trustmark Corporation, (2) | $ | 707,844 | |||||||||||
77,317 | Valley National Bancorp., (2) | 753,841 | ||||||||||||
35,024 | Webster Financial Corporation | 976,819 | ||||||||||||
10,470 | Westamerica Bancorp., (2) | 538,996 | ||||||||||||
Total Commercial Banks | 25,689,682 | |||||||||||||
Commercial Services & Supplies – 1.7% | ||||||||||||||
18,609 | Brinks Company | 584,323 | ||||||||||||
20,907 | Clean Harbors, Inc., (2), (3) | 1,291,007 | ||||||||||||
41,377 | Copart Inc., (3) | 1,333,581 | ||||||||||||
19,738 | Deluxe Corporation, (2) | 929,462 | ||||||||||||
17,641 | HNI Corporation | 685,353 | ||||||||||||
22,653 | Miller (Herman) Inc. | 687,292 | ||||||||||||
12,107 | Mine Safety Appliances Company | 583,073 | ||||||||||||
70,391 | R.R. Donnelley & Sons Company, (2) | 1,307,161 | ||||||||||||
25,543 | Rollins Inc. | 706,009 | ||||||||||||
47,893 | Waste Connections Inc. | 2,046,947 | ||||||||||||
Total Commercial Services & Supplies | 10,154,208 | |||||||||||||
Communications Equipment – 0.7% | ||||||||||||||
23,001 | ADTRAN, Inc. | 540,063 | ||||||||||||
39,397 | Ciena Corporation, (2), (3) | 916,768 | ||||||||||||
15,969 | Interdigital Inc., (2) | 618,799 | ||||||||||||
16,797 | Plantronics Inc. | 721,263 | ||||||||||||
66,947 | Polycom Inc., (3) | 696,249 | ||||||||||||
63,417 | Riverbed Technology, Inc., (2), (3) | 939,840 | ||||||||||||
Total Communications Equipment | 4,432,982 | |||||||||||||
Computers & Peripherals – 1.0% | ||||||||||||||
35,968 | 3D Systems Corporation, (2), (3) | 2,238,648 | ||||||||||||
24,703 | Diebold Inc., (2) | 740,102 | ||||||||||||
24,452 | Lexmark International, Inc., Class A | 869,269 | ||||||||||||
63,795 | NCR Corporation, (3) | 2,331,707 | ||||||||||||
Total Computers & Peripherals | 6,179,726 | |||||||||||||
Construction & Engineering – 0.9% | ||||||||||||||
40,002 | AECOM Technology Corporation, (3) | 1,271,264 | ||||||||||||
13,828 | Granite Construction Inc., (2) | 447,336 | ||||||||||||
57,359 | KBR Inc. | 1,981,180 | ||||||||||||
29,452 | URS Corporation | 1,596,887 | ||||||||||||
Total Construction & Engineering | 5,296,667 | |||||||||||||
Construction Materials – 0.5% | ||||||||||||||
18,555 | Eagle Materials Inc. | 1,391,811 |
Nuveen Investments | 43 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Construction Materials (continued) | ||||||||||||||
17,821 | Martin Marietta Materials | $ | 1,748,062 | |||||||||||
Total Construction Materials | 3,139,873 | |||||||||||||
Containers & Packaging – 1.7% | ||||||||||||||
25,881 | AptarGroup Inc. | 1,660,525 | ||||||||||||
11,808 | Greif Inc., (2) | 631,610 | ||||||||||||
38,066 | Packaging Corp. of America | 2,370,750 | ||||||||||||
27,913 | Rock-Tenn Company | 2,986,970 | ||||||||||||
17,563 | Silgan Holdings, Inc. | 791,564 | ||||||||||||
39,281 | Sonoco Products Company, (2) | 1,596,380 | ||||||||||||
Total Containers & Packaging | 10,037,799 | |||||||||||||
Distributors – 0.6% | ||||||||||||||
115,876 | LKQ Corporation, (3) | 3,827,384 | ||||||||||||
Diversified Consumer Services – 0.9% | ||||||||||||||
38,891 | Apollo Group, Inc., (3) | 1,038,001 | ||||||||||||
21,964 | Devry, Inc., (2) | 788,508 | ||||||||||||
10,713 | Matthews International Corporation | 434,948 | ||||||||||||
21,985 | Regis Corporation | 318,783 | ||||||||||||
82,140 | Service Corporation International | 1,479,341 | ||||||||||||
26,496 | Sothebys Holdings Inc., (2) | 1,375,142 | ||||||||||||
Total Diversified Consumer Services | 5,434,723 | |||||||||||||
Diversified Financial Services – 0.6% | ||||||||||||||
33,867 | CBOE Holdings Inc., (2) | 1,642,550 | ||||||||||||
46,846 | MSCI Inc., Class A Shares, (3) | 1,909,911 | ||||||||||||
Total Diversified Financial Services | 3,552,461 | |||||||||||||
Diversified Telecommunication Services – 0.3% | ||||||||||||||
58,333 | TW Telecom Inc., (3) | 1,838,656 | ||||||||||||
Electric Utilities – 1.9% | ||||||||||||||
23,456 | Cleco Corporation | 1,086,951 | ||||||||||||
59,651 | Great Plains Energy Incorporated | 1,398,219 | ||||||||||||
38,240 | Hawaiian Electric Industries, (2) | 1,016,037 | ||||||||||||
19,494 | IDACORP, INC, (2) | 1,005,890 | ||||||||||||
85,555 | NV Energy Inc. | 2,031,076 | ||||||||||||
76,925 | OGE Energy Corp. | 2,838,533 | ||||||||||||
30,910 | PNM Resources Inc. | 739,367 | ||||||||||||
49,239 | Westar Energy Inc., (2) | 1,556,445 | ||||||||||||
Total Electric Utilities | 11,672,518 | |||||||||||||
Electrical Equipment – 0.9% | ||||||||||||||
16,623 | Acuity Brands Inc. | 1,670,778 |
44 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Electrical Equipment (continued) | ||||||||||||||
19,479 | General Cable Corporation, (2) | $ | 641,443 | |||||||||||
20,730 | Hubbell Incorporated, Class B, (2) | 2,229,304 | ||||||||||||
17,457 | Regal-Beloit Corporation | 1,280,122 | ||||||||||||
Total Electrical Equipment | 5,821,647 | |||||||||||||
Electronic Equipment & Instruments – 1.9% | ||||||||||||||
40,618 | Arrow Electronics, Inc., (3) | 1,950,476 | ||||||||||||
53,184 | Avnet Inc. | 2,111,405 | ||||||||||||
59,114 | Ingram Micro, Inc., Class A, (3) | 1,369,671 | ||||||||||||
15,340 | Itron Inc., (3) | 654,558 | ||||||||||||
36,917 | National Instruments Corporation | 1,072,439 | ||||||||||||
14,653 | Tech Data Corporation, (3) | 762,835 | ||||||||||||
99,263 | Trimble Navigation Limited, (3) | 2,835,944 | ||||||||||||
51,266 | Vishay Intertechnology Inc., (2), (3) | 629,034 | ||||||||||||
Total Electronic Equipment & Instruments | 11,386,362 | |||||||||||||
Energy Equipment & Services – 2.9% | ||||||||||||||
22,217 | Atwood Oceanics Inc., (3) | 1,180,389 | ||||||||||||
7,631 | Carbo Ceramics Inc., (2) | 956,470 | ||||||||||||
29,557 | Dresser Rand Group, Inc., (3) | 1,796,179 | ||||||||||||
14,175 | Dril Quip Inc., (3) | 1,664,429 | ||||||||||||
38,405 | Helix Energy Solutions Group, (3) | 908,662 | ||||||||||||
41,986 | Oceaneering International Inc. | 3,605,758 | ||||||||||||
21,329 | Oil States International Inc., (3) | 2,316,969 | ||||||||||||
56,821 | Patterson-UTI Energy, Inc. | 1,378,477 | ||||||||||||
61,926 | Superior Energy Services, Inc., (3) | 1,661,475 | ||||||||||||
19,203 | Tidewater Inc. | 1,156,405 | ||||||||||||
16,952 | Unit Corporation, (3) | 871,502 | ||||||||||||
Total Energy Equipment & Services | 17,496,715 | |||||||||||||
Food & Staples Retailing – 0.5% | ||||||||||||||
19,194 | Harris Teeter Supermarkets Incorporated | 946,648 | ||||||||||||
77,838 | SUPERVALU INC., (3) | 547,201 | ||||||||||||
19,136 | United Natural Foods Inc., (3) | 1,367,267 | ||||||||||||
Total Food & Staples Retailing | 2,861,116 | |||||||||||||
Food Products – 1.9% | ||||||||||||||
36,220 | Dean Foods Company, (3) | 706,290 | ||||||||||||
66,785 | Flowers Foods Inc., (2) | 1,692,332 | ||||||||||||
50,682 | Green Mountain Coffee Inc., (2), (3) | 3,183,336 | ||||||||||||
47,759 | Hillshire Brands Company | 1,567,928 | ||||||||||||
30,062 | Ingredion Inc. | 1,976,877 | ||||||||||||
7,527 | Lancaster Colony Corporation | 624,666 |
Nuveen Investments | 45 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Food Products (continued) | ||||||||||||||
12,678 | Post Holdings Inc., (3) | $ | 544,520 | |||||||||||
8,250 | Tootsie Roll Industries Inc., (2) | 264,000 | ||||||||||||
67,137 | WhiteWave Foods Company, (3) | 1,343,411 | ||||||||||||
Total Food Products | 11,903,360 | |||||||||||||
Gas Utilities – 1.4% | ||||||||||||||
35,138 | Atmos Energy Corporation | 1,555,559 | ||||||||||||
32,421 | National Fuel Gas Company, (2) | 2,319,723 | ||||||||||||
67,930 | Questar Corporation | 1,607,224 | ||||||||||||
44,176 | UGI Corporation | 1,827,561 | ||||||||||||
20,063 | WGL Holdings Inc. | 903,036 | ||||||||||||
Total Gas Utilities | 8,213,103 | |||||||||||||
Health Care Equipment & Supplies – 2.4% | ||||||||||||||
18,882 | Cooper Companies, Inc., (2) | 2,439,743 | ||||||||||||
23,191 | Hill Rom Holdings Inc. | 957,556 | ||||||||||||
104,506 | Hologic Inc., (3) | 2,339,889 | ||||||||||||
20,995 | Idexx Labs Inc., (2), (3) | 2,264,521 | ||||||||||||
19,917 | Masimo Corporation, (2) | 510,274 | ||||||||||||
55,284 | ResMed Inc., (2) | 2,860,394 | ||||||||||||
22,873 | Steris Corporation | 1,033,631 | ||||||||||||
15,953 | Teleflex Inc., (2) | 1,470,548 | ||||||||||||
22,247 | Thoratec Corporation, (3) | 960,848 | ||||||||||||
Total Health Care Equipment & Supplies | 14,837,404 | |||||||||||||
Health Care Providers & Services – 3.1% | ||||||||||||||
36,578 | Community Health Systems, Inc. | 1,595,898 | ||||||||||||
100,634 | Health Management Associates Inc., (3) | 1,290,128 | ||||||||||||
30,790 | Health Net Inc., (3) | 936,016 | ||||||||||||
33,812 | Henry Schein Inc., (3) | 3,801,483 | ||||||||||||
18,390 | Lifepoint Hospitals Inc., (3) | 949,660 | ||||||||||||
19,410 | Medax Inc., (3) | 2,116,078 | ||||||||||||
40,716 | Omnicare, Inc. | 2,245,487 | ||||||||||||
24,573 | Owens and Minor Inc., (2) | 919,522 | ||||||||||||
34,612 | Universal Health Services, Inc., Class B | 2,788,343 | ||||||||||||
34,357 | VCA Antech, Inc., (2), (3) | 977,457 | ||||||||||||
16,866 | Wellcare Health Plans Inc., (3) | 1,124,625 | ||||||||||||
Total Health Care Providers & Services | 18,744,697 | |||||||||||||
Health Care Technology – 0.3% | ||||||||||||||
68,788 | Allscripts Healthcare Solutions Inc., (3) | 951,338 | ||||||||||||
34,033 | HMS Holdings Corporation, (2), (3) | 719,117 | ||||||||||||
Total Health Care Technology | 1,670,455 |
46 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Hotels, Restaurants & Leisure – 1.5% | ||||||||||||||
14,989 | Bally Technologies, Inc., (2), (3) | $ | 1,096,295 | |||||||||||
10,819 | Bob Evans Farms, (2) | 617,657 | ||||||||||||
27,377 | Brinker International Inc., (2) | 1,216,086 | ||||||||||||
17,061 | Cheesecake Factory Inc., (2) | 806,132 | ||||||||||||
21,829 | Dominos Pizza Inc., (2) | 1,463,853 | ||||||||||||
9,909 | Intl Speedway Corporation | 324,123 | ||||||||||||
15,369 | Life Time Fitness Inc., (2), (3) | 698,060 | ||||||||||||
10,871 | Panera Bread Company, (3) | 1,716,748 | ||||||||||||
20,451 | Scientific Games Corporation, (3) | 373,844 | ||||||||||||
109,907 | The Wendy’s Company, (2) | 955,092 | ||||||||||||
Total Hotels, Restaurants & Leisure | 9,267,890 | |||||||||||||
Household Durables – 2.1% | ||||||||||||||
39,217 | Jarden Corporation, (3) | 2,171,053 | ||||||||||||
31,791 | KB Home, (2) | 539,493 | ||||||||||||
15,171 | MDC Holdings Inc., (2) | 442,841 | ||||||||||||
23,628 | Mohawk Industries Inc., (3) | 3,128,820 | ||||||||||||
1,721 | NVR Inc., (2), (3) | 1,578,708 | ||||||||||||
23,419 | Tempur Pedic International Inc., (2), (3) | 898,119 | ||||||||||||
58,473 | Toll Brothers Inc., (2), (3) | 1,922,592 | ||||||||||||
20,524 | Tupperware Corporation, (2) | 1,839,977 | ||||||||||||
Total Household Durables | 12,521,603 | |||||||||||||
Household Products – 1.0% | ||||||||||||||
53,626 | Church & Dwight Company Inc. | 3,493,734 | ||||||||||||
24,153 | Energizer Holdings Inc. | 2,369,651 | ||||||||||||
Total Household Products | 5,863,385 | |||||||||||||
Industrial Conglomerates – 0.3% | ||||||||||||||
24,692 | Carlisle Companies Inc. | 1,794,615 | ||||||||||||
Insurance – 4.7% | ||||||||||||||
6,538 | Alleghany Corporation, Term Loan, (3) | 2,650,636 | ||||||||||||
29,308 | American Financial Group Inc. | 1,648,868 | ||||||||||||
49,188 | Arthur J. Gallagher & Co. | 2,333,971 | ||||||||||||
26,433 | Aspen Insurance Holdings Limited | 1,031,151 | ||||||||||||
45,831 | Brown & Brown Inc. | 1,463,384 | ||||||||||||
19,392 | Everest Reinsurance Group Ltd | 2,981,326 | ||||||||||||
82,939 | Fidelity National Title Group Inc., Class A | 2,334,733 | ||||||||||||
41,981 | First American Corporation, (2) | 1,085,629 | ||||||||||||
17,079 | Hanover Insurance Group Inc. | 999,805 | ||||||||||||
38,960 | HCC Insurance Holdings Inc. | 1,778,524 | ||||||||||||
20,946 | Kemper Corporation | 775,421 |
Nuveen Investments | 47 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Insurance (continued) | ||||||||||||||
14,067 | Mercury General Corporation | $ | 654,960 | |||||||||||
93,677 | Old Republic International Corporation | 1,572,837 | ||||||||||||
17,913 | Primerica Inc., (2) | 769,363 | ||||||||||||
30,442 | Protective Life Corporation | 1,402,767 | ||||||||||||
28,133 | Reinsurance Group of America Inc. | 2,002,507 | ||||||||||||
17,180 | StanCorp Financial Group Inc., (2) | 1,011,902 | ||||||||||||
42,760 | WR Berkley Corporation | 1,877,592 | ||||||||||||
Total Insurance | 28,375,376 | |||||||||||||
Internet & Catalog Retail – 0.1% | ||||||||||||||
13,878 | Hosting Site Network, Inc. | 727,207 | ||||||||||||
Internet Software & Services – 1.1% | ||||||||||||||
30,056 | AOL Inc., (2) | 1,089,229 | ||||||||||||
19,152 | Equinix Inc., (2), (3) | 3,092,665 | ||||||||||||
42,877 | Rackspace Hosting Inc., (2), (3) | 2,196,589 | ||||||||||||
27,801 | ValueClick, Inc., (2), (3) | 534,057 | ||||||||||||
Total Internet Software & Services | 6,912,540 | |||||||||||||
IT Services – 3.7% | ||||||||||||||
28,683 | Acxiom Corporation, (3) | 953,136 | ||||||||||||
19,087 | Alliance Data Systems Corporation, (2), (3) | 4,524,764 | ||||||||||||
47,042 | Broadridge Financial Solutions, Inc. | 1,653,997 | ||||||||||||
40,770 | Convergys Corporation | 804,800 | ||||||||||||
37,057 | CoreLogic Inc., (3) | 1,232,886 | ||||||||||||
11,585 | DST Systems Inc. | 982,060 | ||||||||||||
36,380 | Gartner Inc., (3) | 2,144,601 | ||||||||||||
30,026 | Global Payments Inc. | 1,785,946 | ||||||||||||
33,417 | Henry Jack and Associates Inc. | 1,824,902 | ||||||||||||
23,433 | Leidos Holdings Inc. | 1,103,460 | ||||||||||||
32,960 | Lender Processing Services Inc. | 1,137,779 | ||||||||||||
9,218 | ManTech International Corporation, Class A | 257,551 | ||||||||||||
25,535 | NeuStar, Inc., (2), (3) | 1,172,567 | ||||||||||||
13,390 | Science Applications International Corporation, (2) | 471,998 | ||||||||||||
42,116 | VeriFone Holdings Inc., (3) | 954,349 | ||||||||||||
15,057 | WEX Inc., (3) | 1,405,571 | ||||||||||||
Total IT Services | 22,410,367 | |||||||||||||
Leisure Equipment & Products – 0.5% | ||||||||||||||
24,807 | Polaris Industries Inc., (2) | 3,248,477 | ||||||||||||
Life Sciences Tools & Services – 1.3% | ||||||||||||||
7,860 | Bio-Rad Laboratories Inc., (3) | 970,867 | ||||||||||||
19,026 | Charles River Laboratories International, Inc., (3) | 936,269 |
48 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Life Sciences Tools & Services (continued) | ||||||||||||||
21,684 | Covance, Inc., (2), (3) | $ | 1,935,514 | |||||||||||
11,713 | Mettler-Toledo International Inc., (2), (3) | 2,898,499 | ||||||||||||
12,729 | Techne Corporation | 1,112,387 | ||||||||||||
Total Life Sciences Tools & Services | 7,853,536 | |||||||||||||
Machinery – 5.1% | ||||||||||||||
37,763 | AGCO Corporation | 2,204,604 | ||||||||||||
19,281 | CLARCOR, Inc., (2) | 1,127,553 | ||||||||||||
18,853 | Crane Company | 1,197,166 | ||||||||||||
52,463 | Donaldson Company, Inc. | 2,078,059 | ||||||||||||
23,773 | Graco Inc., (2) | 1,836,702 | ||||||||||||
31,303 | Harsco Corporation | 872,728 | ||||||||||||
31,911 | IDEX Corporation | 2,206,646 | ||||||||||||
34,886 | ITT Industries, Inc. | 1,386,021 | ||||||||||||
30,555 | Kennametal Inc., (2) | 1,405,530 | ||||||||||||
32,187 | Lincoln Electric Holdings Inc. | 2,228,628 | ||||||||||||
21,928 | Nordson Corporation | 1,580,790 | ||||||||||||
34,144 | Oshkosh Truck Corporation, (3) | 1,624,913 | ||||||||||||
18,158 | SPX Corporation | 1,647,112 | ||||||||||||
43,151 | Terex Corporation, (2), (3) | 1,508,127 | ||||||||||||
30,969 | Timken Company | 1,635,473 | ||||||||||||
30,735 | Trinity Industries Inc., (2) | 1,556,113 | ||||||||||||
9,136 | Valmont Industries, Inc. | 1,283,608 | ||||||||||||
37,329 | Wabtec Corporation | 2,433,478 | ||||||||||||
23,480 | Woodward Governor Company | 941,313 | ||||||||||||
Total Machinery | 30,754,564 | |||||||||||||
Marine – 0.4% | ||||||||||||||
22,024 | Kirby Corporation, (3) | 1,948,904 | ||||||||||||
16,563 | Matson Incorporated | 448,692 | ||||||||||||
Total Marine | 2,397,596 | |||||||||||||
Media – 1.3% | ||||||||||||||
22,410 | AMC Networks Inc., Class A Shares, (3) | 1,570,717 | ||||||||||||
39,481 | Cinemark Holdings Inc. | 1,295,372 | ||||||||||||
27,601 | Dreamworks Animation SKG Inc., (2), (3) | 945,058 | ||||||||||||
17,946 | John Wiley and Sons Inc., Class A | 902,504 | ||||||||||||
21,586 | Lamar Advertising Company, (3) | 986,696 | ||||||||||||
13,982 | Meredith Corporation | 717,277 | ||||||||||||
47,373 | New York Times, Class A, (2) | 655,169 | ||||||||||||
10,273 | Scholastic Corporation, (2) | 294,732 | ||||||||||||
15,066 | Vallassis Communications Inc., (2) | 412,206 | ||||||||||||
Total Media | 7,779,731 |
Nuveen Investments | 49 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Metals & Mining – 1.4% | ||||||||||||||
17,185 | Carpenter Technology Inc. | $ | 1,019,586 | |||||||||||
45,355 | Commercial Metals Company | 832,718 | ||||||||||||
12,925 | Compass Minerals International, Inc., (2) | 962,525 | ||||||||||||
29,760 | Reliance Steel & Aluminum Company | 2,181,110 | ||||||||||||
25,239 | Royal Gold, Inc. | 1,212,482 | ||||||||||||
85,526 | Steel Dynamics Inc. | 1,536,902 | ||||||||||||
20,693 | Worthington Industries, Inc. | 838,894 | ||||||||||||
Total Metals & Mining | 8,584,217 | |||||||||||||
Multiline Retail – 0.2% | ||||||||||||||
22,592 | Big Lots, Inc., (2), (3) | 821,445 | ||||||||||||
39,046 | Saks Inc., (3) | 624,346 | ||||||||||||
Total Multiline Retail | 1,445,791 | |||||||||||||
Multi-Utilities – 1.1% | ||||||||||||||
43,043 | Alliant Energy Corporation | 2,247,705 | ||||||||||||
17,247 | Black Hills Corporation, (2) | 874,768 | ||||||||||||
73,276 | MDU Resources Group Inc. | 2,182,159 | ||||||||||||
31,927 | Vectren Corporation, (2) | 1,114,891 | ||||||||||||
Total Multi-Utilities | 6,419,523 | |||||||||||||
Office Electronics – 0.2% | ||||||||||||||
19,760 | Zebra Technologies Corporation, Class A, (3) | 954,606 | ||||||||||||
Oil, Gas & Consumable Fuels – 2.8% | ||||||||||||||
85,895 | Alpha Natural Resources Inc., (2), (3) | 601,265 | ||||||||||||
82,364 | Arch Coal Inc., (2) | 349,223 | ||||||||||||
18,929 | Bill Barrett Corporation, (2), (3) | 523,765 | ||||||||||||
33,548 | Cimarex Energy Company | 3,534,282 | ||||||||||||
28,027 | Energen Corporation, (2) | 2,195,075 | ||||||||||||
27,080 | Gulfport Energy Corporation, (2), (3) | 1,589,325 | ||||||||||||
78,903 | HollyFrontier Company, (2) | 3,634,272 | ||||||||||||
23,706 | Rosetta Resources, Inc., (2), (3) | 1,420,938 | ||||||||||||
25,718 | SM Energy Company | 2,278,872 | ||||||||||||
28,182 | World Fuel Services Corporation, (2) | 1,075,143 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 17,202,160 | |||||||||||||
Paper & Forest Products – 0.3% | ||||||||||||||
13,043 | Domtar Corporation | 1,104,873 | ||||||||||||
54,079 | Louisiana-Pacific Corporation, (3) | 919,884 | ||||||||||||
Total Paper & Forest Products | 2,024,757 | |||||||||||||
Pharmaceuticals – 0.7% | ||||||||||||||
43,556 | Endo Pharmaceuticals Holdings Inc., (3) | 1,904,704 | ||||||||||||
22,821 | Mallinckrodt PLC, (3) | 958,710 |
50 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Pharmaceuticals (continued) | ||||||||||||||
21,827 | Salix Pharmaceuticals Limited, (3) | $ | 1,566,087 | |||||||||||
Total Pharmaceuticals | 4,429,501 | |||||||||||||
Professional Services – 1.1% | ||||||||||||||
13,044 | Corporate Executive Board Company, (2) | 950,908 | ||||||||||||
15,642 | FTI Consulting Inc., (3) | 634,752 | ||||||||||||
29,930 | Manpower Inc. | 2,337,533 | ||||||||||||
21,907 | Towers Watson & Company, Class A Shares | 2,515,143 | ||||||||||||
Total Professional Services | 6,438,336 | |||||||||||||
Real Estate Investment Trust – 8.5% | ||||||||||||||
27,333 | Alexandria Real Estate Equities Inc., (2) | 1,797,965 | ||||||||||||
40,660 | American Campus Communities Inc., (2) | 1,405,210 | ||||||||||||
72,300 | BioMed Realty Trust Inc., (2) | 1,440,216 | ||||||||||||
29,907 | BRE Properties, Inc. | 1,633,221 | ||||||||||||
32,921 | Camden Property Trust, (2) | 2,113,528 | ||||||||||||
33,283 | Corporate Office Properties | 818,762 | ||||||||||||
44,709 | Corrections Corporation of America | 1,654,233 | ||||||||||||
126,584 | Duke Realty Corporation, (2) | 2,097,497 | ||||||||||||
24,030 | Equity One Inc., (2) | 579,363 | ||||||||||||
14,745 | Essex Property Trust Inc., (2) | 2,373,945 | ||||||||||||
40,211 | Extra Space Storage Inc., (2) | 1,849,304 | ||||||||||||
25,319 | Federal Realty Investment Trust, (2) | 2,623,048 | ||||||||||||
31,875 | Highwoods Properties, Inc., (2) | 1,230,375 | ||||||||||||
21,765 | Home Properties New York, Inc., (2) | 1,312,647 | ||||||||||||
54,225 | Hospitality Properties Trust | 1,593,131 | ||||||||||||
29,239 | Kilroy Realty Corporation | 1,554,345 | ||||||||||||
54,811 | Liberty Property Trust | 2,038,421 | ||||||||||||
32,413 | Mack-Cali Realty Corporation | 666,411 | ||||||||||||
13,435 | Mid-America Apartment Communities | 892,084 | ||||||||||||
45,932 | National Retail Properties, Inc., (2) | 1,580,061 | ||||||||||||
45,073 | Omega Healthcare Investors Inc., (2) | 1,498,227 | ||||||||||||
15,712 | Potlatch Corporation | 641,521 | ||||||||||||
48,904 | Rayonier Inc. | 2,299,466 | ||||||||||||
76,149 | Realty Income Corporation, (2) | 3,171,606 | ||||||||||||
35,547 | Regency Centers Corporation, (2) | 1,836,358 | ||||||||||||
72,984 | Senior Housing Properties Trust, (2) | 1,798,326 | ||||||||||||
35,544 | SL Green Realty Corporation, (2) | 3,361,396 | ||||||||||||
24,745 | Taubman Centers Inc. | 1,627,974 | ||||||||||||
97,302 | UDR Inc., (2) | 2,414,063 | ||||||||||||
43,488 | Weingarten Realty Trust, (2) | 1,379,874 | ||||||||||||
Total Real Estate Investment Trust | 51,282,578 |
Nuveen Investments | 51 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Real Estate Management & Development – 0.4% | ||||||||||||||
16,706 | Alexander & Baldwin Inc. | $ | 618,122 | |||||||||||
17,111 | Jones Lang LaSalle Inc. | 1,628,967 | ||||||||||||
Total Real Estate Management & Development | 2,247,089 | |||||||||||||
Road & Rail – 1.1% | ||||||||||||||
21,863 | Con-Way, Inc. | 900,756 | ||||||||||||
19,216 | Genesee & Wyoming Inc., (3) | 1,918,525 | ||||||||||||
35,134 | J.B. Hunt Transports Serives Inc. | 2,636,104 | ||||||||||||
18,068 | Landstar System | 998,980 | ||||||||||||
17,344 | Werner Enterprises, Inc., (2) | 401,687 | ||||||||||||
Total Road & Rail | 6,856,052 | |||||||||||||
Semiconductors & Equipment – 2.1% | ||||||||||||||
236,520 | Advanced Micro Devices, Inc., (2), (3) | 789,977 | ||||||||||||
166,330 | Atmel Corporation, (3) | 1,210,882 | ||||||||||||
45,760 | Cree, Inc., (2), (3) | 2,779,920 | ||||||||||||
52,495 | Cypress Semiconductor Corporation, (2) | 487,154 | ||||||||||||
49,367 | Fairchild Semiconductor International Inc., Class A, (3) | 625,480 | ||||||||||||
57,253 | Integrated Device Technology, Inc., (3) | 609,172 | ||||||||||||
26,950 | International Rectifier Corporation, (3) | 701,778 | ||||||||||||
49,355 | Intersil Holding Corporation, Class A | 550,802 | ||||||||||||
109,141 | RF Micro Devices, Inc., (3) | 572,990 | ||||||||||||
26,192 | Semtech Corporation, (2), (3) | 814,833 | ||||||||||||
15,154 | Silicon Laboratories Inc., (3) | 609,494 | ||||||||||||
74,194 | Skyworks Solutions Inc., (3) | 1,912,721 | ||||||||||||
103,131 | SunEdison Inc., (2), (3) | 959,118 | ||||||||||||
Total Semiconductors & Equipment | 12,624,321 | |||||||||||||
Software – 4.0% | ||||||||||||||
15,463 | ACI Worldwide, Inc., (2), (3) | 852,321 | ||||||||||||
12,563 | Advent Software Inc. | 421,489 | ||||||||||||
36,169 | Ansys Inc., (3) | 3,162,979 | ||||||||||||
109,818 | Cadence Design Systems, Inc., (2), (3) | 1,424,339 | ||||||||||||
16,775 | CommVault Systems, Inc., (3) | 1,309,792 | ||||||||||||
82,822 | Compuware Corporation | 884,539 | ||||||||||||
17,766 | Concur Technologies, Inc., (2), (3) | 1,858,324 | ||||||||||||
15,701 | FactSet Research Systems Inc., (2) | 1,710,467 | ||||||||||||
13,921 | Fair Isaac Corporation, (2) | 797,395 | ||||||||||||
41,941 | Informatica Corporation, (3) | 1,618,923 | ||||||||||||
36,789 | Mentor Graphics Corporation | 812,301 | ||||||||||||
30,523 | Micros Systems, Inc., (2), (3) | 1,655,873 | ||||||||||||
46,392 | Parametric Technology Corporation, (3) | 1,285,986 |
52 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Software (continued) | ||||||||||||||
40,114 | Rovi Corporation, (3) | $ | 672,311 | |||||||||||
23,928 | Solarwinds, Inc., (3) | 865,954 | ||||||||||||
26,735 | Solera Holdings Inc. | 1,503,042 | ||||||||||||
59,668 | Synopsys Inc., (3) | 2,174,899 | ||||||||||||
60,494 | Tibco Software Inc., (3) | 1,485,733 | ||||||||||||
Total Software | 24,496,667 | |||||||||||||
Specialty Retail – 4.0% | ||||||||||||||
27,358 | Aaron Rents Inc., (2) | 776,146 | ||||||||||||
28,380 | Advance Auto Parts, Inc. | 2,814,728 | ||||||||||||
30,450 | Aeropostale, Inc., (2), (3) | 282,881 | ||||||||||||
68,037 | American Eagle Outfitters, Inc., (2) | 1,053,893 | ||||||||||||
18,293 | Ann Inc., (3) | 646,840 | ||||||||||||
49,417 | Ascena Retail Group Inc., (3) | 977,962 | ||||||||||||
18,038 | Cabela’s Incorporated, (2), (3) | 1,070,014 | ||||||||||||
62,954 | Chico’s FAS, Inc. | 1,079,661 | ||||||||||||
23,406 | CST Brands Inc., (2) | 754,609 | ||||||||||||
38,878 | Dick’s Sporting Goods Inc. | 2,068,698 | ||||||||||||
58,258 | Foot Locker, Inc. | 2,021,553 | ||||||||||||
23,706 | Guess Inc., (2) | 740,813 | ||||||||||||
12,378 | Murphy USA Inc., (3) | 502,299 | ||||||||||||
111,015 | Office Depot, Inc., (3) | 620,574 | ||||||||||||
21,261 | Rent-A-Center Inc., (2) | 727,977 | ||||||||||||
31,384 | Signet Jewelers Limited | 2,343,129 | ||||||||||||
54,162 | Tractor Supply Company, (2) | 3,864,459 | ||||||||||||
33,361 | Williams-Sonoma Inc., (2) | 1,749,451 | ||||||||||||
Total Specialty Retail | 24,095,687 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.2% | ||||||||||||||
19,773 | Carter’s Inc. | 1,367,303 | ||||||||||||
13,369 | Deckers Outdoor Corporation, (2), (3) | 920,188 | ||||||||||||
38,241 | Hanesbrands Inc. | 2,604,977 | ||||||||||||
30,172 | Under Armour, Inc., (2), (3) | 2,448,458 | ||||||||||||
Total Textiles, Apparel & Luxury Goods | 7,340,926 | |||||||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||||||||
31,848 | Astoria Financial Corporation | 420,712 | ||||||||||||
171,076 | New York Community Bancorp Inc., (2) | 2,773,142 | ||||||||||||
40,431 | Washington Federal Inc. | 921,018 | ||||||||||||
Total Thrifts & Mortgage Finance | 4,114,872 | |||||||||||||
Tobacco – 0.1% | ||||||||||||||
9,056 | Universal Corporation, (2) | 480,240 |
Nuveen Investments | 53 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||||||||
Trading Companies & Distributors – 1.0% | ||||||||||||||||||||
18,161 | GATX Corporation | $ | 936,200 | |||||||||||||||||
18,175 | MSC Industrial Direct Inc., Class A | 1,388,025 | ||||||||||||||||||
36,568 | United Rentals Inc., (2), (3) | 2,361,920 | ||||||||||||||||||
11,520 | Watsco Inc. | 1,097,740 | ||||||||||||||||||
Total Trading Companies & Distributors | 5,783,885 | |||||||||||||||||||
Water Utilities – 0.3% | ||||||||||||||||||||
68,268 | Aqua America Inc., (2) | 1,718,988 | ||||||||||||||||||
Wireless Telecommunication Services – 0.2% |
| |||||||||||||||||||
39,003 | Telephone and Data Systems Inc. | 1,216,114 | ||||||||||||||||||
Total Common Stocks (cost $406,783,982) | 568,122,457 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 28.7% |
| |||||||||||||||||||
Money Market Funds – 28.7% | ||||||||||||||||||||
173,913,770 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 173,913,770 | |||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $173,913,770) | 173,913,770 | |||||||||||||||||||
Total Long-Term Investments (cost $580,697,752) | 742,036,227 | |||||||||||||||||||
Shares/ Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (6) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 6.2% | ||||||||||||||||||||
Money Market Funds – 5.9% | ||||||||||||||||||||
35,856,663 | First American Treasury Obligations Fund, Class Z | 0.000% | (4) | N/A | N/A | $ | 35,856,663 | |||||||||||||
U.S. Government and Agency Obligations – 0.3% |
| |||||||||||||||||||
$ | 2,000 | U.S. Treasury Bills, (7) | 0.000% | 2/13/14 | N/R | 1,999,712 | ||||||||||||||
|
| |||||||||||||||||||
Total Short-Term Investments (cost $37,856,345) |
| 37,856,375 | ||||||||||||||||||
Total Investments (cost $618,554,097) – 128.6% |
| 779,892,602 | ||||||||||||||||||
Other Assets Less Liabilities – (28.6)% (8) |
| (173,249,923 | ) | |||||||||||||||||
Net Assets – 100% |
| $ | 606,642,679 |
Investments in Derivatives as of October 31, 2013
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
S&P MidCap 400 E-Mini Index | Long | 285 | 12/13 | $ | 36,662,394 | $ | 1,470,179 |
54 | 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 the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan at the end of the reporting period was $167,588,976. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investment in Derivatives, Securities Lending for more information. |
(6) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(7) | Investment, or portion of investment, segregated as collateral for investments in derivatives. |
(8) | Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period. |
N/A | Not applicable. |
See accompanying notes to financial statements.
Nuveen Investments | 55 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 112.7% | ||||||||||||||
COMMON STOCKS – 90.7% | ||||||||||||||
Aerospace & Defense – 1.5% | ||||||||||||||
3,072 | AAR Corporation | $ | 89,948 | |||||||||||
1,432 | Aerovironment, Inc., (2), (3) | 38,822 | ||||||||||||
631 | American Science & Engineering Inc. | 41,507 | ||||||||||||
2,496 | API Technologies Corporation, (2) | 7,288 | ||||||||||||
971 | Astronics Corporation, (2) | 47,637 | ||||||||||||
194 | Astronics Corporation, (2) | 9,378 | ||||||||||||
1,535 | Cubic Corporation | 80,588 | ||||||||||||
3,620 | Curtiss Wright Corporation | 180,204 | ||||||||||||
5,758 | DigitalGlobe Inc., (2) | 183,220 | ||||||||||||
820 | Ducommon Inc., (2) | 20,385 | ||||||||||||
1,326 | Engility Holdings Inc., (2) | 41,066 | ||||||||||||
292 | Erickson Air-Crane Inc., (2), (3) | 5,723 | ||||||||||||
2,419 | Esterline Technologies Corporation, (2) | 193,907 | ||||||||||||
4,677 | GenCorp Inc., (2), (3) | 78,574 | ||||||||||||
5,129 | Heico Corporation | 274,798 | ||||||||||||
973 | Innovative Solutions & Support, Inc. | 7,667 | ||||||||||||
2,465 | Keyw Holding Corporation, (2), (3) | 28,348 | ||||||||||||
3,397 | Kratos Defence & Security Solutions Inc., (2) | 28,807 | ||||||||||||
801 | LMI Aerospace, Inc., (2) | 12,576 | ||||||||||||
3,503 | Moog Inc., CLass A Shares, (2) | 209,234 | ||||||||||||
372 | National Presto Industries Inc. | 26,245 | ||||||||||||
4,637 | Orbital Sciences Corporation, (2) | 106,976 | ||||||||||||
790 | Sparton Corporation, (2) | 20,848 | ||||||||||||
3,959 | Taser International, Inc., (2), (3) | 70,351 | ||||||||||||
2,889 | Teledyne Technologies Inc., (2), (3) | 256,601 | ||||||||||||
Total Aerospace & Defense | 2,060,698 | |||||||||||||
Air Freight & Logistics – 0.4% | ||||||||||||||
4,009 | Air Transport Servcies Group Inc., (2) | 29,025 | ||||||||||||
1,996 | Atlas Air Worldwide Holdings Inc., (2) | 73,912 | ||||||||||||
1,377 | Echo Global Logistics, Inc., (2), (3) | 25,351 | ||||||||||||
2,333 | Forward Air Corporation | 94,440 | ||||||||||||
2,859 | Hub Group, Inc., (2) | 105,011 | ||||||||||||
2,731 | Pacer International, Inc., (2) | 21,793 |
56 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Air Freight & Logistics (continued) | ||||||||||||||
669 | Park Ohio Holdings Corporation, (2) | $ | 27,703 | |||||||||||
7,015 | UTI Worldwide, Inc., (3) | 106,628 | ||||||||||||
2,266 | XPO Logistics, Incorporated, (2) | 45,728 | ||||||||||||
Total Air Freight & Logistics | 529,591 | |||||||||||||
Airlines – 0.7% | ||||||||||||||
1,159 | Allegiant Travel Company | 120,849 | ||||||||||||
4,013 | Hawaian Holdings Inc., (2), (3) | 33,107 | ||||||||||||
17,973 | JetBlue Airways Corporation, (2), (3) | 127,429 | ||||||||||||
3,799 | Republic Airways Holdings, Inc., (2) | 44,752 | ||||||||||||
4,010 | Skywest Inc. | 60,310 | ||||||||||||
4,661 | Spirit Airline Holdings, (2) | 201,122 | ||||||||||||
14,844 | U.S. Airways Group Inc., (2), (3) | 326,123 | ||||||||||||
Total Airlines | 913,692 | |||||||||||||
Auto Components – 0.9% | ||||||||||||||
5,197 | American Axle and Manufacturing Holdings Inc., (2) | 96,716 | ||||||||||||
4,897 | Cooper Tire & Rubber | 127,371 | ||||||||||||
11,352 | Dana Holding Corporation, (3) | 222,499 | ||||||||||||
1,950 | Dorman Products, Inc. | 94,790 | ||||||||||||
1,772 | Drew Industries Inc. | 89,061 | ||||||||||||
1,524 | Federal Mogul Corporation, Class A Shares, (2) | 31,227 | ||||||||||||
759 | Fox Factory Holding Corporation, (2) | 13,222 | ||||||||||||
1,086 | Fuel Systems Solutions, Inc., (2) | 19,505 | ||||||||||||
2,583 | Gentherm Inc., (2) | 60,313 | ||||||||||||
3,650 | Modine Manufacturing Company, (2) | 48,618 | ||||||||||||
1,083 | Remy International Inc., (3) | 23,858 | ||||||||||||
471 | Shiloh Industries, Inc. | 7,734 | ||||||||||||
2,646 | Spartan Motors, Inc. | 17,966 | ||||||||||||
1,531 | Standard Motor Products Inc., (3) | 55,361 | ||||||||||||
2,202 | Stoneridge Inc., (2) | 28,098 | ||||||||||||
1,796 | Superior Industries International Inc. | 33,675 | ||||||||||||
4,702 | Tenneco Inc., (2) | 249,535 | ||||||||||||
472 | Tower International Inc., (2) | 10,016 | ||||||||||||
Total Auto Components | 1,229,565 | |||||||||||||
Automobiles – 0.0% | ||||||||||||||
2,169 | Winnebago Industries Inc., (2) | 64,333 | ||||||||||||
Beverages – 0.1% | ||||||||||||||
637 | Boston Beer Company, (2), (3) | 146,249 | ||||||||||||
346 | Coca-Cola Bottling Company Consolidated | 21,909 | ||||||||||||
816 | Craft Brewers Alliance Inc., (2) | 13,236 |
Nuveen Investments | 57 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Beverages (continued) | ||||||||||||||
876 | National Beverage Corporation | $ | 16,040 | |||||||||||
Total Beverages | 197,434 | |||||||||||||
Biotechnology – 3.4% | ||||||||||||||
5,418 | Acadia Pharmaceuticals, Inc., (2), (3) | 123,151 | ||||||||||||
7,465 | Achillion Pharmaceuticals, Inc., (2) | 18,737 | ||||||||||||
3,136 | Acorda Therapeutics, Inc., (2) | 95,993 | ||||||||||||
2,228 | Aegerion Pharmaceuticals Inc., (2), (3) | 184,523 | ||||||||||||
527 | Agios Pharmaceutical Inc., (2), (3) | 12,205 | ||||||||||||
4,493 | Alnylam Pharmaceuticals, Inc., (2) | 258,842 | ||||||||||||
1,668 | AMAG Pharmaceuticals Inc., (2) | 45,003 | ||||||||||||
2,351 | Amicus Therapeutics, Inc., (2), (3) | 4,984 | ||||||||||||
1,959 | Anacor Pharmaceuticals Inc., (2), (3) | 25,487 | ||||||||||||
16,835 | Arena Pharmaceuticals, Inc., (2), (3) | 73,906 | ||||||||||||
4,586 | ArQule Inc., (2) | 10,319 | ||||||||||||
9,028 | Array Biopharma, Inc., (2) | 45,321 | ||||||||||||
4,011 | Aveo Pharmaceuticals Inc., (2) | 8,303 | ||||||||||||
2,854 | BioTime Inc., (2) | 10,360 | ||||||||||||
527 | Bluebird Bio Inc., (2), (3) | 11,199 | ||||||||||||
8,707 | Cell Therapeutics, Inc., (2), (3) | 15,324 | ||||||||||||
6,251 | Celldex Therapeutics, Inc., (2), (3) | 143,210 | ||||||||||||
296 | Cellular Dynamics International Inc., (2) | 4,177 | ||||||||||||
5,188 | Cepheid, Inc., (2), (3) | 211,255 | ||||||||||||
5,186 | Chelsea Therapeutics International, Inc., (2) | 14,676 | ||||||||||||
1,901 | ChemoCentryx Inc., (2), (3) | 9,410 | ||||||||||||
656 | Chimerix Inc., (2) | 9,938 | ||||||||||||
1,232 | Clovis Oncology Inc., (2) | 62,968 | ||||||||||||
462 | Conatus Pharmaceuticals Inc., (2) | 4,112 | ||||||||||||
1,936 | Coronado Biosciences Inc., (2) | 3,233 | ||||||||||||
6,226 | Curis, Inc., (2), (3) | 24,842 | ||||||||||||
1,915 | Cytokinetics, Inc., (2), (3) | 11,509 | ||||||||||||
4,884 | Cytori Therapeutics, Inc., (2), (3) | 10,061 | ||||||||||||
12,184 | Dendreon Corporation, (2), (3) | 31,313 | ||||||||||||
1,010 | Durata Therapeutics Inc., (2) | 9,777 | ||||||||||||
9,318 | Dyax Corporation, (2) | 76,594 | ||||||||||||
14,139 | Dynavax Technologies Corporation, (2) | 17,391 | ||||||||||||
2,122 | Emergent BioSolutions, Inc., (2) | 41,443 | ||||||||||||
281 | Enanta Pharmaceuticals Inc., (2) | 5,609 | ||||||||||||
2,905 | Enzon Inc. | 4,299 | ||||||||||||
457 | Epizyme Inc., (2) | 17,512 |
58 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Biotechnology (continued) | ||||||||||||||
354 | Esperion Therapeutics Inc., (2) | $ | 5,547 | |||||||||||
5,444 | EXACT Sciences Corporation, (2), (3) | 59,993 | ||||||||||||
14,209 | Exelixis, Inc., (2), (3) | 70,050 | ||||||||||||
1,304 | Fibrocell Science Inc., (2) | 4,825 | ||||||||||||
7,882 | Galena Biopharma Inc., (2), (3) | 17,577 | ||||||||||||
1,294 | Genomic Health, Inc., (2), (3) | 38,716 | ||||||||||||
10,082 | Geron Corporation, (2) | 39,824 | ||||||||||||
2,028 | GTX, Inc., (2), (3) | 3,468 | ||||||||||||
6,868 | Halozyme Therapeutics, Inc., (2), (3) | 80,012 | ||||||||||||
649 | Hyperion Therapeutics Inc., (2), (3) | 12,999 | ||||||||||||
7,713 | Idenix Pharmaceuticals Inc., (2), (3) | 25,376 | ||||||||||||
6,535 | Immunogen, Inc., (2), (3) | 107,566 | ||||||||||||
5,668 | Immunomedics, Inc., (2), (3) | 21,482 | ||||||||||||
3,702 | Infinity Pharmaceuticals, Inc., (2) | 50,162 | ||||||||||||
2,675 | Insmed Incorporated, (2) | 38,092 | ||||||||||||
364 | Insys Therapeutics Inc., (2) | 14,520 | ||||||||||||
485 | Intercept Pharmaceuticals Incorporated, (2) | 26,306 | ||||||||||||
6,310 | Intermune, Inc., (2) | 88,908 | ||||||||||||
886 | Intrexon Corporation, (2), (3) | 18,783 | ||||||||||||
7,194 | �� | Ironwood Pharmacauticals Inc., (2), (3) | 69,134 | |||||||||||
8,683 | ISIS Pharmaceuticals, Inc., (2), (3) | 288,883 | ||||||||||||
917 | Kalobios Pharmaceuticals Inc., (2) | 3,677 | ||||||||||||
6,318 | Keryx Biopharmaceuticals, Inc., (2), (3) | 65,391 | ||||||||||||
788 | Kythera Biopharmaceuticals ,Incorporated, (2) | 35,231 | ||||||||||||
17,573 | Lexicon Genetics, Inc., (2), (3) | 42,175 | ||||||||||||
1,377 | Ligand Pharmceuticals, Inc., (2), (3) | 71,274 | ||||||||||||
11,499 | MannKind Corporation, (2), (3) | 56,230 | ||||||||||||
693 | MEI Pharma Inc., (2) | 5,558 | ||||||||||||
7,470 | Merrimack Pharmaceuticals, Incorporated, (2), (3) | 20,020 | ||||||||||||
6,509 | MiMedx Group Inc., (2), (3) | 34,498 | ||||||||||||
3,650 | Momenta Pharmaceuticals, Inc., (2) | 59,824 | ||||||||||||
4,205 | Nanosphere Inc., (2) | 8,200 | ||||||||||||
5,158 | Neurocrine Biosciences Inc., (2) | 48,692 | ||||||||||||
1,306 | NewLink Genetics Corporation, (2) | 21,876 | ||||||||||||
14,331 | Novavax, Inc., (2) | 44,426 | ||||||||||||
7,756 | NPS Pharmaceuticals, Inc., (2) | 223,218 | ||||||||||||
1,134 | OncoGenex Pharmacuetical Inc., (2) | 7,972 | ||||||||||||
363 | Oncomed Pharamceuticals Inc., (2) | 5,049 | ||||||||||||
458 | Onconova Therapeutics Inc., (2) | 7,209 |
Nuveen Investments | 59 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Biotechnology (continued) | ||||||||||||||
14,544 | Opko Health Inc., (2), (3) | $ | 145,731 | |||||||||||
7,317 | Orexigen Therapeutics Inc., (2), (3) | 35,707 | ||||||||||||
1,282 | Osiris Therapeutics, Inc., (2) | 17,063 | ||||||||||||
693 | OvaScience Inc., (2), (3) | 6,701 | ||||||||||||
10,822 | PDL Biopahrma Inc., (3) | 87,550 | ||||||||||||
11,719 | Peregrine Pharmaceuticals, Inc., Reg S, (2), (3) | 15,118 | ||||||||||||
748 | Portola Pharmaceuticals Inc., (2) | 16,568 | ||||||||||||
4,602 | Progenics Pharmaceuticals, Inc., (2) | 16,751 | ||||||||||||
1,096 | Prothena Corporation PLC, (2) | 26,348 | ||||||||||||
741 | PTC Therapeutics Inc., (2), (3) | 13,331 | ||||||||||||
1,713 | Puma Biotechnology Inc, (2) | 65,625 | ||||||||||||
4,285 | Raptor Pharmaceuticals Corporation, (2) | 61,618 | ||||||||||||
446 | Receptos Inc., (2) | 11,400 | ||||||||||||
789 | Regulus Therapeutics Incorporated, (2) | �� | 5,499 | |||||||||||
2,430 | Repligen Corporation, (2) | 26,584 | ||||||||||||
6,737 | Rigel Pharmaceuticals, Inc., (2) | 20,817 | ||||||||||||
4,701 | Sangamo Biosciences, Inc., (2) | 44,048 | ||||||||||||
2,587 | Sarepta Therapautics Inc., (2) | 100,738 | ||||||||||||
2,841 | SIGA Technologies, Inc., (2), (3) | 9,745 | ||||||||||||
4,640 | Spectrum Pharmaceuticals, Inc., (3) | 39,858 | ||||||||||||
707 | Stemline Therapeutics Inc., (2) | 19,676 | ||||||||||||
2,502 | Sunesis Pharmaceuticals, Inc., (2) | 12,535 | ||||||||||||
1,480 | Synageva BioPharma Corporation, (2), (3) | 75,184 | ||||||||||||
6,228 | Synergy Pharmaceuticals Inc., (2) | 25,161 | ||||||||||||
3,136 | Synta Pharmaceuticals Corporation, (2), (3) | 14,237 | ||||||||||||
2,158 | Targacept, Inc., (2) | 10,251 | ||||||||||||
1,034 | Tesaro Inc., (2) | 39,809 | ||||||||||||
890 | Tetraphase Pharmaceuticals Inc., (2) | 11,152 | ||||||||||||
1,201 | TG Therapeutics Inc., (2) | 4,336 | ||||||||||||
3,641 | Threshold Pharmaceuticals, Inc., (2), (3) | 15,802 | ||||||||||||
2,560 | Vanda Pharmaceuticals, Inc., (2) | 18,330 | ||||||||||||
1,339 | Verastem Inc., (2), (3) | 13,390 | ||||||||||||
5,872 | Vical, Inc., (2), (3) | 7,340 | ||||||||||||
5,340 | XOMA Limited, (2) | 24,083 | ||||||||||||
5,190 | ZIOPHARM Oncology, Inc., (2), (3) | 18,373 | ||||||||||||
Total Biotechnology | 4,576,188 | |||||||||||||
Building Products – 0.7% | ||||||||||||||
2,170 | Aaon, Inc. | 58,612 | ||||||||||||
768 | American Woodmark Company, (2) | 26,051 |
60 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Building Products (continued) | ||||||||||||||
2,222 | Apogee Enterprises, Inc., (3) | $ | 69,504 | |||||||||||
3,453 | Builders FirstSource, Inc., (2) | 25,587 | ||||||||||||
2,371 | Gibraltar Industries Inc., (2) | 37,960 | ||||||||||||
3,449 | Griffon Corporation | 43,216 | ||||||||||||
1,394 | Insteel Industries, Inc. | 23,126 | ||||||||||||
1,600 | NCI Building Systems Inc., (2) | 23,088 | ||||||||||||
697 | Nortek Inc., (2) | 48,908 | ||||||||||||
515 | Patrick Industries, Inc., (2) | 16,109 | ||||||||||||
2,565 | PGT, Inc., (2) | 26,804 | ||||||||||||
1,220 | Ply Gem Holdings Inc., (2) | 18,178 | ||||||||||||
2,865 | Quanex Building Products Corporation | 50,940 | ||||||||||||
3,133 | Simpson Manufacturing Company Inc. | 111,065 | ||||||||||||
1,329 | Trex Company Inc., (2) | 93,322 | ||||||||||||
1,535 | Universal Forest Products Inc., (3) | 81,232 | ||||||||||||
5,926 | USG Corporation, (2), (3) | 161,839 | ||||||||||||
Total Building Products | 915,541 | |||||||||||||
Capital Markets – 2.4% | ||||||||||||||
17,374 | Apollo Investment Corporation | 148,200 | ||||||||||||
1,237 | Arlington Asset Investment Corporation | 30,517 | ||||||||||||
9,822 | BGC Partners Inc., Class A | 52,253 | ||||||||||||
5,729 | BlackRock Kelso Capital Corporation, (3) | 53,795 | ||||||||||||
1,535 | Calamos Asset Management, Inc. Class A | 15,074 | ||||||||||||
1,044 | Capital Southwest Corporation | 34,316 | ||||||||||||
781 | CIFC Corporation | 6,170 | ||||||||||||
1,455 | Cohen & Steers Inc., (3) | 55,814 | ||||||||||||
7,550 | Cowen Group, Inc, Class A, (2), (3) | 29,974 | ||||||||||||
218 | Diamond Hill Investment Group, Inc. | 24,039 | ||||||||||||
2,445 | Evercore Partners Inc., (3) | 123,399 | ||||||||||||
676 | FBR Capital Markets Corporation, (2) | 17,914 | ||||||||||||
1,059 | Fidus Investment Corporation, (3) | 21,508 | ||||||||||||
9,335 | Fifth Street Finance Corporation | 95,217 | ||||||||||||
3,781 | Financial Engines Inc., (3) | 211,244 | ||||||||||||
2,828 | FXCM Inc, Class A Shares | 46,351 | ||||||||||||
466 | GAMCO Investors Inc. | 33,324 | ||||||||||||
464 | Garrison Capital Inc | 6,835 | ||||||||||||
5,382 | GFI Group, Inc. | 18,676 | ||||||||||||
1,624 | Gladstone Capital Corporation | 14,324 | ||||||||||||
1,930 | Gladstone Investment Corporation | 13,645 | ||||||||||||
2,497 | Golub Capital BDC Inc., (3) | 43,947 |
Nuveen Investments | 61 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Capital Markets (continued) | ||||||||||||||
2,179 | Greenhill & Co Inc. | $ | 111,783 | |||||||||||
1,430 | GSV Capital Corporporation, (2), (3) | 21,865 | ||||||||||||
1,139 | Hannon Armstrong Sustainable Infrastructure Capital Inc., (3) | 13,953 | ||||||||||||
4,759 | Hercules Technology Growth Capital, Inc., (3) | 73,479 | ||||||||||||
2,559 | HFF Inc., Class A Shares | 62,823 | ||||||||||||
637 | Horizon Technology Finance Corporation | 8,587 | ||||||||||||
2,938 | ICG Group Inc., (2) | 47,919 | ||||||||||||
1,088 | INTL FCStone Inc., (2) | 22,260 | ||||||||||||
2,877 | Investment Technology Group, (2) | 46,090 | ||||||||||||
11,535 | Janus Capital Group Inc., (3) | 113,850 | ||||||||||||
1,214 | JMP Group Inc. | 7,782 | ||||||||||||
2,186 | KCAP Financial Incorporated, (3) | 18,428 | ||||||||||||
5,492 | KCG Holdings Inc., Class A Shares, (2) | 48,000 | ||||||||||||
7,960 | Ladenburg Thalmann Financial Services Inc., (2) | 16,716 | ||||||||||||
2,689 | Main Street Capital Corporation | 81,746 | ||||||||||||
979 | Manning & Napier Inc. | 16,251 | ||||||||||||
5,505 | MCG Capital Corporation | 25,929 | ||||||||||||
1,439 | Medallion Financial Corporation | 21,844 | ||||||||||||
3,092 | Medley Capital Corporation | 43,102 | ||||||||||||
1,724 | MVC Capital Inc. | 23,843 | ||||||||||||
2,886 | New Mountain Finance Corporation | 40,923 | ||||||||||||
1,600 | NGP Capital Resources Company | 11,904 | ||||||||||||
761 | Oppenheimer Holdings Inc., Class A | 15,091 | ||||||||||||
743 | PennantPark Floating Rate Capital Inc. | 9,874 | ||||||||||||
5,137 | Pennantpark Investment Corporation | 57,843 | ||||||||||||
1,335 | Piper Jaffray Companies, (2) | 47,913 | ||||||||||||
19,103 | Prospect Capital Corporation, (3) | 216,628 | ||||||||||||
878 | Pzena Investments Management, Inc. | 6,313 | ||||||||||||
1,621 | Safeguard Scientifics Inc., (2) | 28,286 | ||||||||||||
425 | Silvercrest Asset Management Corporation Class A, (2) | 6,277 | ||||||||||||
3,480 | Solar Capital Limited | 79,866 | ||||||||||||
851 | Solar Senior Capital Limited | 15,522 | ||||||||||||
931 | Stellus Capital Investment Corporation, (3) | 13,816 | ||||||||||||
4,914 | Stifel Financial Corporation, (2), (3) | 201,228 | ||||||||||||
2,237 | SWS Group Inc., (2) | 12,594 | ||||||||||||
1,871 | TCP Capital Corporation | 31,190 | ||||||||||||
4,062 | Technology Investment Capital Corporation, (3) | 40,620 | ||||||||||||
1,041 | THL Credit Inc., (3) | 16,916 | ||||||||||||
2,131 | Triangle Capital Corporation | 63,419 |
62 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Capital Markets (continued) | ||||||||||||||
520 | Virtus Investment Partners Inc., (2), (3) | $ | 105,830 | |||||||||||
2,852 | Walter Investment Management Corporation, (2) | 107,720 | ||||||||||||
540 | Westwood Holding Group Inc. | 28,798 | ||||||||||||
533 | WhiteHorse Finance Incorporated | 8,214 | ||||||||||||
7,765 | WisdomTree Investments Inc., (2) | 107,934 | ||||||||||||
Total Capital Markets | 3,197,505 | |||||||||||||
Chemicals – 2.1% | ||||||||||||||
2,274 | A Schulman, Inc. | 75,315 | ||||||||||||
778 | Advanced Emissions Solutions Inc., (2), (3) | 29,385 | ||||||||||||
457 | American Pacific Corporation, (2) | 20,803 | ||||||||||||
2,213 | American Vanguard Corp., (3) | 57,759 | ||||||||||||
1,537 | Arabian American Development Company, (2) | 13,987 | ||||||||||||
5,396 | Axiall Corporation | 209,850 | ||||||||||||
2,295 | Balchem Corporation | 131,412 | ||||||||||||
4,182 | Calgon Carbon Corporation, (2), (3) | 83,431 | ||||||||||||
498 | Chase Corporation, Common Stock | 15,069 | ||||||||||||
7,600 | Chemtura Corporation, (2) | 186,200 | ||||||||||||
5,600 | Ferro Corporation, (2) | 71,848 | ||||||||||||
3,690 | Flotek Industries Inc., (2), (3) | 78,892 | ||||||||||||
1,680 | FutureFuel Corporation | 29,249 | ||||||||||||
596 | GSE Holdings Inc., (2) | 1,681 | ||||||||||||
3,890 | H.B. Fuller Company | 186,214 | ||||||||||||
729 | Hawkins Inc, (3) | 26,251 | ||||||||||||
1,698 | Innophos Holdings, Inc. | 85,104 | ||||||||||||
1,816 | Innospec, Inc. | 83,645 | ||||||||||||
4,230 | Interpid Potash Inc., (3) | 62,816 | ||||||||||||
632 | KMG Chemicals, Inc. | 12,627 | ||||||||||||
1,602 | Koppers Holdings Inc. | 71,305 | ||||||||||||
2,515 | Kraton Performance Polymers Inc., (2) | 53,494 | ||||||||||||
2,004 | Landec Corporation, (2) | 23,467 | ||||||||||||
1,478 | LSB Industries Inc., (2) | 54,272 | ||||||||||||
2,694 | Minerals Technologies Inc. | 152,561 | ||||||||||||
6,207 | Olin Corporation | 139,720 | ||||||||||||
2,471 | OM Group Inc., (2) | 84,014 | ||||||||||||
3,638 | OMNOVA Solutions Inc., (2) | 31,651 | ||||||||||||
742 | Penford Corporation, (2) | 10,091 | ||||||||||||
7,682 | PolyOne Corporation | 232,765 | ||||||||||||
1,015 | Quaker Chemical Corporation, (3) | 77,049 | ||||||||||||
3,868 | Sensient Technologies Corporation | 201,639 |
Nuveen Investments | 63 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Chemicals (continued) | ||||||||||||||
1,457 | Stepan Company, (3) | $ | 85,774 | |||||||||||
1,220 | Taminco Corporation, (2) | 24,363 | ||||||||||||
1,902 | Tredegar Corporation | 55,576 | ||||||||||||
1,751 | Zep Inc. | 34,827 | ||||||||||||
2,126 | Zoltek Companies, Inc., (2) | 35,504 | ||||||||||||
Total Chemicals | 2,829,610 | |||||||||||||
Commercial Banks – 6.4% | ||||||||||||||
1,167 | 1st Source Corporation | 36,620 | ||||||||||||
2,311 | 1st United Bancorp Inc/North | 17,656 | ||||||||||||
565 | Access National Corporation | 8,209 | ||||||||||||
607 | American National Bankshares, Inc. | 13,925 | ||||||||||||
1,845 | Ameris Bancorp., (2) | 33,764 | ||||||||||||
719 | Ames National Corporation | 16,199 | ||||||||||||
781 | Arrow Financial Corporation, (3) | 20,158 | ||||||||||||
547 | BancFirst Corporation | 30,397 | ||||||||||||
2,262 | Banco Latinoamericano de Exportaciones S.A | 59,332 | ||||||||||||
2,540 | Bancorp, Inc., (2) | 41,072 | ||||||||||||
7,358 | BancorpSouth Inc., (3) | 162,612 | ||||||||||||
474 | Bank of Kentucky Financial Corporation | 13,656 | ||||||||||||
420 | Bank of Marin Bancorp California | 17,871 | ||||||||||||
2,403 | Bank of the Ozarks, Inc., (3) | 118,900 | ||||||||||||
1,504 | Banner Corporation | 57,543 | ||||||||||||
303 | Bar Harbor Bankshares | 11,435 | ||||||||||||
6,105 | BBCN Bancorp Inc. | 90,537 | ||||||||||||
1,416 | BNC Bancorp., (3) | 18,564 | ||||||||||||
6,161 | Boston Private Financial Holdings Inc., (3) | 70,174 | ||||||||||||
693 | Bridge Bancorp Inc. | 16,001 | ||||||||||||
744 | Bridge Capital Holdings, (2) | 13,087 | ||||||||||||
1,045 | Bryn Mawr Bank | 29,114 | ||||||||||||
252 | C & F Financial, Inc., (3) | 13,585 | ||||||||||||
590 | Camden National Corporation | 23,807 | ||||||||||||
1,916 | Capital Bank Financial Corporation, Class A Shares, (2) | 42,574 | ||||||||||||
964 | Capital City Bank, (2) | 11,857 | ||||||||||||
2,339 | Cardinal Financial Corporation | 38,594 | ||||||||||||
472 | Cascade Bancorp., (2) | 2,440 | ||||||||||||
6,097 | Cathay General Bancorp. | 150,169 | ||||||||||||
910 | Center Bancorp, Inc. | 13,614 | ||||||||||||
2,327 | Centerstate Banks of Florida, Inc. | 22,944 | ||||||||||||
1,687 | Central Pacific Financial Corporation | 31,075 |
64 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Commercial Banks (continued) | ||||||||||||||
263 | Century Bancorp, Inc. | $ | 8,548 | |||||||||||
2,128 | Chemical Financial Corporation | 62,329 | ||||||||||||
278 | Chemung Financial Corporation | 9,794 | ||||||||||||
953 | Citizens & Northern Corporation | 18,831 | ||||||||||||
1,210 | City Holding Company, (3) | 55,055 | ||||||||||||
967 | CNB Financial Corporation | 19,350 | ||||||||||||
2,740 | Cobiz, Inc. | 29,729 | ||||||||||||
3,944 | Columbia Banking Systems Inc. | 101,321 | ||||||||||||
3,093 | Community Bank System Inc. | 112,307 | ||||||||||||
1,084 | Community Trust Bancorp, Inc. | 46,168 | ||||||||||||
813 | CommunityOne Bancorp., (2) | 8,748 | ||||||||||||
135 | ConnectOne Bancorp Inc., (2) | 5,131 | ||||||||||||
678 | Customers Bancorp Inc., (2), (3) | 12,611 | ||||||||||||
1,544 | Customers Bancorp Inc., (2) | 25,862 | ||||||||||||
7,100 | CVB Financial | 103,234 | ||||||||||||
1,724 | Eagle Bancorp, Inc., (2) | 45,600 | ||||||||||||
560 | Enterprise Bancorp, Inc. | 10,942 | ||||||||||||
1,400 | Enterprise Financial Services Corporation | 25,242 | ||||||||||||
11,211 | F.N.B. Corporation PA, (3) | 140,250 | ||||||||||||
578 | Farmers Capital Bank Corporation, (2) | 11,872 | ||||||||||||
1,128 | Fidelity Southern Corporation | 17,230 | ||||||||||||
1,067 | Financial Institutions, Inc. | 25,256 | ||||||||||||
739 | First Bancorp Maine | 12,866 | ||||||||||||
1,521 | First Bancorp of North Carolina, Inc. | 22,785 | ||||||||||||
5,574 | First Bancorp of Puerto Rico, (2) | 30,936 | ||||||||||||
5,511 | First Busey Corporation | 28,492 | ||||||||||||
7,567 | First Commonwealth Financial Corporation, (3) | 65,757 | ||||||||||||
1,384 | First Community Bancshares, Inc. | 23,099 | ||||||||||||
1,313 | First Connecticut Bancorp. | 19,275 | ||||||||||||
4,473 | First Financial Bancorp. | 69,421 | ||||||||||||
2,437 | First Financial Bankshares, Inc., (3) | 149,900 | ||||||||||||
867 | First Financial Corporation | 29,946 | ||||||||||||
1,857 | First Financial Holdings Inc. | 111,290 | ||||||||||||
1,356 | First Interstate BancSystem Inc., Montana | 34,049 | ||||||||||||
2,224 | First Merchants Corporation, (3) | 41,811 | ||||||||||||
5,804 | First Midwest Bancorp, Inc. | 96,521 | ||||||||||||
322 | First NBC Bank Holding Company, (2) | 8,581 | ||||||||||||
611 | First of Long Island Corporation | 24,043 | ||||||||||||
4,826 | First Security Group, Inc., (2) | 9,797 |
Nuveen Investments | 65 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Commercial Banks (continued) | ||||||||||||||
12,813 | FirstMerit Corporation, (3) | $ | 287,780 | |||||||||||
2,383 | Flushing Financial Corporation, (3) | 47,874 | ||||||||||||
1,415 | German American Bancorp, Inc. | 38,460 | ||||||||||||
5,190 | Glacier Bancorp, Inc. | 143,400 | ||||||||||||
797 | Great Southern Bancorp. | 22,380 | ||||||||||||
1,138 | Guaranty Bancorp. | 15,363 | ||||||||||||
2,431 | Hampton Roads Bankshares, Inc., (2) | 3,428 | ||||||||||||
6,561 | Hancock Holding Company | 215,070 | ||||||||||||
2,441 | Hanmi Financial Corporation | 42,669 | ||||||||||||
1,146 | Heartland Financial USA, Inc. | 30,358 | ||||||||||||
1,609 | Heritage Commerce Coporation | 12,534 | ||||||||||||
1,171 | Heritage Financial Corporation | 18,888 | ||||||||||||
1,559 | Heritage Oaks Bancorp, (2) | 10,679 | ||||||||||||
3,497 | Home Bancshares, Inc. | 118,478 | ||||||||||||
1,121 | Home Federal Bancorp, Inc. | 17,476 | ||||||||||||
1,609 | HomeTrust Bancshares Inc., (2) | 25,985 | ||||||||||||
672 | Horizon Bancorp. | 14,589 | ||||||||||||
1,270 | Hudson Valley Holding Corporation | 23,482 | ||||||||||||
2,139 | IberiaBank Corporation | 124,982 | ||||||||||||
1,769 | Independent Bank Corporation, (3) | 63,472 | ||||||||||||
293 | Independent Bank Group Inc. | 11,055 | ||||||||||||
4,442 | International Bancshares Corporation, (3) | 101,500 | ||||||||||||
1,383 | Intervest Bancshares Corporation, (2) | 10,082 | ||||||||||||
3,601 | Investors Bancorp, Inc. | 85,380 | ||||||||||||
2,309 | Lakeland Bancorp, Inc. | 26,323 | ||||||||||||
1,269 | Lakeland Financial Corporation | 45,164 | ||||||||||||
436 | LCNB Corporation | 8,785 | ||||||||||||
1,834 | Macatawa Bank Corporation, (2) | 9,005 | ||||||||||||
1,575 | Mainsource Financial Group | 25,547 | ||||||||||||
4,236 | MB Financial, Inc. | 125,809 | ||||||||||||
672 | Mercantile Bank Corporation, (3) | 14,676 | ||||||||||||
434 | Merchants Bancshares, Inc. | 13,011 | ||||||||||||
1,092 | Metro Bancorp, Inc., (2) | 23,303 | ||||||||||||
1,233 | Metrocorp Bancshares, Inc. | 17,669 | ||||||||||||
411 | Middleburg Financial Corporation | 7,530 | ||||||||||||
635 | Midsouth Bancorp Inc. | 9,639 | ||||||||||||
524 | MidWestOne Financial Group Inc. | 13,844 | ||||||||||||
4,040 | National Bank Holdings Corporation | 84,840 | ||||||||||||
537 | National Bankshares, Inc. | 18,876 |
66 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Commercial Banks (continued) | ||||||||||||||
9,046 | National Penn Bancshares, Inc. | $ | 93,807 | |||||||||||
3,385 | NBT Bancorp, Inc. | 82,492 | ||||||||||||
1,953 | NewBridge Bancorp., (2), (3) | 14,569 | ||||||||||||
2,392 | no description | 35,282 | ||||||||||||
479 | Northrim Bancorp, Inc. | 12,023 | ||||||||||||
3,527 | OFG Bancorp., (3) | 52,235 | ||||||||||||
7,836 | Old National Bancorp. | 113,935 | ||||||||||||
885 | OmniAmerican Bancorp Inc., (2) | 19,399 | ||||||||||||
1,382 | Pacific Continental Corporation | 19,044 | ||||||||||||
1,286 | Pacific Premier Bancorp, Inc., (2) | 17,888 | ||||||||||||
2,931 | Pacwest Bancorp., (3) | 111,525 | ||||||||||||
345 | Palmetto Bancshares Inc., (2) | 4,630 | ||||||||||||
890 | Park National Corporation | 70,506 | ||||||||||||
3,457 | Park Sterling Bank Inc. | 22,505 | ||||||||||||
695 | Peapack Gladstone Financial Corporation | 12,746 | ||||||||||||
284 | Penns Woods Bancorp, Inc. | 14,541 | ||||||||||||
834 | Peoples Bancorp, Inc. | 18,698 | ||||||||||||
2,708 | Pinnacle Financial Partners, Inc., (2) | 83,948 | ||||||||||||
902 | Preferred Bank Los Angeles, (2) | 17,336 | ||||||||||||
5,018 | Privatebancorp, Inc. | 122,238 | ||||||||||||
4,660 | Prosperity Bancshares, Inc. | 291,017 | ||||||||||||
2,360 | Renasant Corporation | 67,685 | ||||||||||||
749 | Republic Bancorp, Inc. | 17,242 | ||||||||||||
2,297 | S&T Bancorp, Inc. | 56,322 | ||||||||||||
1,929 | Sandy Spring Bancorp, Inc. | 47,241 | ||||||||||||
5,669 | Seacoast Banking Corporation of Florida, (2) | 12,925 | ||||||||||||
941 | Sierra Bancorp. | 17,813 | ||||||||||||
1,276 | Simmons First National Corporation | 41,776 | ||||||||||||
1,379 | Southside Bancshares, Inc. | 37,647 | ||||||||||||
1,522 | Southwest Bancorp, Inc., (2) | 24,367 | ||||||||||||
2,468 | State Bank Financial Corporation | 42,104 | ||||||||||||
1,755 | StellarOne Corporation | 40,856 | ||||||||||||
2,626 | Sterling Financial Corporation | 76,049 | ||||||||||||
894 | Suffolk Bancorp., (2) | 17,478 | ||||||||||||
3,126 | Sun Bancorp, Inc., (2) | 10,316 | ||||||||||||
14,414 | Susquehanna Bancshs Inc. | 169,869 | ||||||||||||
1,079 | SY Bancorp, Inc. | 32,381 | ||||||||||||
1,336 | Taylor Capital Group, Inc., (2) | 30,728 | ||||||||||||
3,153 | Texas Capital BancShares, Inc., (2), (3) | 164,114 |
Nuveen Investments | 67 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Commercial Banks (continued) | ||||||||||||||
1,117 | Tompkins Financial Corporation | $ | 55,090 | |||||||||||
3,857 | Towne Bank | 56,158 | ||||||||||||
1,238 | Trico Bancshares | 31,309 | ||||||||||||
506 | Tristate Capital Holdings Inc., (2) | 6,330 | ||||||||||||
5,191 | Trustmark Corporation, (3) | 140,988 | ||||||||||||
2,508 | UMB Financial Corporation | 147,771 | ||||||||||||
8,654 | Umpqua Holdings Corporation, (3) | 141,666 | ||||||||||||
1,562 | Union First Market Bankshares Corporation, (3) | 37,675 | ||||||||||||
3,891 | United Bankshares, Inc., (3) | 115,096 | ||||||||||||
3,330 | United Community Banks, Inc., (2) | 51,915 | ||||||||||||
1,290 | Univest Corporation of Pennsylvania | 25,761 | ||||||||||||
869 | VantageSouth Bancshares Inc., (2) | 4,249 | ||||||||||||
3,089 | ViewPoint Financial Group, (3) | 67,371 | ||||||||||||
2,084 | Virginia Commerce Bancorp, Inc., (2) | 33,407 | ||||||||||||
1,198 | Washington Banking Company | 20,378 | ||||||||||||
1,118 | Washington Trust Bancorp, Inc. | 36,771 | ||||||||||||
6,977 | Webster Financial Corporation | 194,589 | ||||||||||||
2,003 | WesBanco, Inc. | 58,888 | ||||||||||||
1,206 | West Bancorp, Inc. | 16,667 | ||||||||||||
1,943 | Westamerica Bancorp., (3) | 100,026 | ||||||||||||
5,726 | Western Alliance Bancorporation, (2) | 121,105 | ||||||||||||
4,787 | Wilshire Bancorp, Inc. | 40,546 | ||||||||||||
2,668 | Wintrust Financial Corporation, (3) | 116,085 | ||||||||||||
1,112 | Yadkin Financial Inc., (2) | 18,259 | ||||||||||||
Total Commercial Banks | 8,626,226 | |||||||||||||
Commercial Services & Supplies – 1.9% | ||||||||||||||
4,225 | ABM Industries Inc. | 116,230 | ||||||||||||
8,777 | Acco Brands Corporation, (2), (3) | 51,345 | ||||||||||||
1,705 | Acorn Energy Inc., (3) | 6,411 | ||||||||||||
1,424 | American Ecology Corporation | 50,623 | ||||||||||||
2,913 | ARC Document Solutions, (2) | 18,177 | ||||||||||||
3,707 | Brinks Company | 116,400 | ||||||||||||
2,986 | Casella Waste Systems, Inc., (2) | 17,647 | ||||||||||||
1,356 | CECO Environmental Corporation, (3) | 23,942 | ||||||||||||
4,165 | Cenveo Inc., (2), (3) | 13,078 | ||||||||||||
73 | CompX International Inc. | 1,036 | ||||||||||||
559 | Consolidated Graphics Inc., (2) | 35,826 | ||||||||||||
885 | Courier Corporation, (3) | 15,036 | ||||||||||||
3,932 | Deluxe Corporation, (3) | 185,158 |
68 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Commercial Services & Supplies (continued) | ||||||||||||||
2,031 | EnerNOC, Inc., (2) | $ | 33,776 | |||||||||||
2,023 | Ennis Inc. | 35,908 | ||||||||||||
1,512 | G&K Services, Inc. | 94,349 | ||||||||||||
4,930 | Healthcare Services Group, Inc., (3) | 135,033 | ||||||||||||
683 | Heritage-Crystal Clean, Inc., (2), (3) | 12,069 | ||||||||||||
3,515 | HNI Corporation | 136,558 | ||||||||||||
3,428 | Innerworkings, Inc., (2), (3) | 32,806 | ||||||||||||
4,587 | Interface, Inc. | 92,887 | ||||||||||||
732 | Intersections, Inc. | 6,273 | ||||||||||||
2,508 | Kimball International Inc., Class B | 29,344 | ||||||||||||
3,724 | Knoll Inc. | 61,148 | ||||||||||||
1,948 | McGrath Rentcorp. | 69,485 | ||||||||||||
4,532 | Miller (Herman) Inc. | 137,501 | ||||||||||||
2,189 | Mine Safety Appliances Company | 105,422 | ||||||||||||
2,964 | Mobile Mini, Inc., (2) | 107,060 | ||||||||||||
947 | Multi Color Corporation | 32,984 | ||||||||||||
522 | NL Industries Inc. | 6,087 | ||||||||||||
1,726 | Performant Financial Corporation, (2) | 17,208 | ||||||||||||
1,932 | Quad Graphics Inc. | 67,465 | ||||||||||||
1,042 | Schawk Inc. | 15,234 | ||||||||||||
1,192 | Standard Parking Corporation, (2) | 31,552 | ||||||||||||
6,518 | Steelcase Inc., (3) | 106,830 | ||||||||||||
8,798 | Swisher Hygiene Inc., (2) | 5,312 | ||||||||||||
1,591 | Team, Inc., (2) | 59,328 | ||||||||||||
5,019 | Tetra Tech, Inc., (2) | 131,146 | ||||||||||||
1,250 | TRC Companies, (2) | 9,613 | ||||||||||||
1,132 | UniFirst Corporation | 116,392 | ||||||||||||
3,135 | United Stationers, Inc. | 139,319 | ||||||||||||
1,572 | Viad Corporation | 41,972 | ||||||||||||
1,646 | West Corporation | 36,245 | ||||||||||||
Total Commercial Services & Supplies | 2,557,215 | |||||||||||||
Communications Equipment – 1.7% | ||||||||||||||
4,582 | ADTRAN, Inc. | 107,585 | ||||||||||||
890 | Alliance Fiber, (3) | 16,527 | ||||||||||||
898 | Anaren Microwave Inc., (2) | 22,432 | ||||||||||||
9,006 | Arris Group Inc., (2) | 160,847 | ||||||||||||
8,809 | Aruba Networks, Inc., (2), (3) | 165,257 | ||||||||||||
4,735 | Aviat Networks Inc., (2) | 9,754 | ||||||||||||
786 | Bel Fuse, Inc., Class B | 16,537 |
Nuveen Investments | 69 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Communications Equipment (continued) | ||||||||||||||
1,247 | Black Box Corporation | $ | 31,225 | |||||||||||
2,710 | CalAmp Corporation, (2) | 63,766 | ||||||||||||
3,095 | Calix Inc., (2) | 31,476 | ||||||||||||
7,848 | Ciena Corporation, (2) | 182,623 | ||||||||||||
1,301 | Comtech Telecom Corporation | 39,056 | ||||||||||||
1,999 | Digi International, Inc., (2) | 20,150 | ||||||||||||
7,024 | Emulex Corporation, (2) | 52,891 | ||||||||||||
6,700 | Extreme Networks Inc., (2) | 35,912 | ||||||||||||
7,223 | Finisar Corporation, (2) | 166,201 | ||||||||||||
1,828 | Globecom Systems, Inc., (2) | 25,647 | ||||||||||||
8,160 | Harmonic Inc., (2) | 59,650 | ||||||||||||
8,958 | Infinera Corporation, (2), (3) | 91,461 | ||||||||||||
3,182 | Interdigital Inc., (3) | 123,303 | ||||||||||||
4,366 | IXIA, (2) | 61,910 | ||||||||||||
1,199 | KVH Industries, Inc., (2) | 16,474 | ||||||||||||
2,979 | Netgear, Inc., (2) | 85,676 | ||||||||||||
1,081 | Numerex Corporation, (2) | 12,767 | ||||||||||||
1,472 | Oplink Communications, Inc., (2) | 26,864 | ||||||||||||
6,843 | Parkervision, Inc., (2), (3) | 18,750 | ||||||||||||
1,428 | PCTEL, Inc. | 13,152 | ||||||||||||
3,346 | Plantronics Inc. | 143,677 | ||||||||||||
1,589 | Procera Networks Inc., (2), (3) | 22,484 | ||||||||||||
3,365 | Ruckus Wireless Incorporated, (2) | 48,793 | ||||||||||||
4,551 | ShoreTel, Inc., (2) | 36,180 | ||||||||||||
16,680 | Sonus Networks, Inc., (2) | 50,040 | ||||||||||||
3,168 | Symmetricom Inc., (2) | 22,715 | ||||||||||||
27,487 | Tellabs Inc. | 67,068 | �� | |||||||||||
423 | Tessco Technologies Inc. | 14,987 | ||||||||||||
973 | Ubiquiti Networks Inc. | 37,538 | ||||||||||||
3,058 | ViaSat, Inc., (2), (3) | 202,195 | ||||||||||||
3,411 | Westell Technologies Inc., Class A, (2) | 12,245 | ||||||||||||
Total Communications Equipment | 2,315,815 | |||||||||||||
Computers & Peripherals – 0.4% | ||||||||||||||
2,402 | Avid Technology Inc., (2) | 17,895 | ||||||||||||
3,063 | Cray, Inc., (2) | 68,489 | ||||||||||||
1,218 | Datalink Corporation, (2) | 12,509 | ||||||||||||
3,588 | Electronics For Imaging, (2) | 123,104 | ||||||||||||
5,879 | Fusion-io Inc., (2) | 63,199 | ||||||||||||
1,810 | Hutchinson Technology Inc., (2), (3) | 6,733 |
70 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Computers & Peripherals (continued) | ||||||||||||||
2,621 | Imation Corporation, (2) | $ | 12,188 | |||||||||||
2,157 | Immersion Corporation, (2) | 27,437 | ||||||||||||
6,883 | QLogic Corporation, (2) | 85,005 | ||||||||||||
16,411 | Quantum Corporation, (2) | 20,350 | ||||||||||||
2,615 | Silicon Graphics International Corporation, (2) | 33,394 | ||||||||||||
2,463 | Super Micro Computer Inc., (2) | 34,285 | ||||||||||||
Total Computers & Peripherals | 504,588 | |||||||||||||
Construction & Engineering – 0.8% | ||||||||||||||
3,025 | Aegion Corporation, (2) | 62,013 | ||||||||||||
1,512 | Ameresco Inc., Class A Shares, (2), (3) | 15,816 | ||||||||||||
1,080 | Argan, Inc. | 24,030 | ||||||||||||
2,875 | Comfort Systems USA Inc. | 53,561 | ||||||||||||
2,556 | Dycom Industries Inc., (2) | 75,785 | ||||||||||||
5,188 | Emcor Group Inc. | 192,267 | ||||||||||||
2,891 | Furmanite Corporation, (2) | 32,524 | ||||||||||||
3,001 | Granite Construction Inc. | 97,082 | ||||||||||||
4,592 | Great Lakes Dredge & Dock Corporation | 37,287 | ||||||||||||
1,532 | Layne Christensen Company, (2), (3) | 29,629 | ||||||||||||
4,593 | MasTec Inc., (2), (3) | 146,838 | ||||||||||||
1,622 | MYR Group Inc., (2) | 42,902 | ||||||||||||
729 | Northwest Pipe Company, (2) | 26,266 | ||||||||||||
2,107 | Orion Marine Group Inc., (2) | 26,338 | ||||||||||||
2,006 | Pike Electric Corporation | 21,685 | ||||||||||||
2,728 | Primoris Services Corporation | 71,037 | ||||||||||||
1,285 | Sterling Construction Company, Inc., (2) | 12,336 | ||||||||||||
2,866 | Tutor Perini Corporation, (2), (3) | 65,775 | ||||||||||||
Total Construction & Engineering | 1,033,171 | |||||||||||||
Construction Materials – 0.1% | ||||||||||||||
5,649 | Headwater Inc., (2) | 49,316 | ||||||||||||
1,682 | Texas Industries Inc., (2), (3) | 90,323 | ||||||||||||
150 | United States Lime & Minerals, Inc., (2) | 8,334 | ||||||||||||
1,041 | U.S. Concrete, Inc., (2) | 22,746 | ||||||||||||
Total Construction Materials | 170,719 | |||||||||||||
Consumer Finance – 0.7% | ||||||||||||||
2,206 | Cash America International, Inc., (3) | 87,027 | ||||||||||||
1,393 | Consumer Portfolio Services, Inc., (2) | 9,361 | ||||||||||||
549 | Credit Acceptance Corporation, (2) | 64,947 | ||||||||||||
3,131 | DFC Global Corporation, (2), (3) | 37,885 | ||||||||||||
1,934 | Encore Capital Group, Inc., (2), (3) | 94,476 |
Nuveen Investments | 71 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Consumer Finance (continued) | ||||||||||||||
3,946 | EZCORP, Inc., (2) | $ | 62,071 | |||||||||||
2,256 | First Cash Financial Services, Inc., (2) | 136,465 | ||||||||||||
7,061 | First Marblehead Corporation, (2) | 6,779 | ||||||||||||
1,995 | Green Dot Corporation, Class A Shares, (2) | 42,813 | ||||||||||||
1,244 | Imperial Holdings, Incorporated, (2) | 7,290 | ||||||||||||
1,769 | Nelnet Inc. | 75,412 | ||||||||||||
794 | Nicholas Financial, Inc. | 12,744 | ||||||||||||
3,921 | Porfolio Recovery Associates, Inc., (2), (3) | 233,103 | ||||||||||||
415 | Regional Management Corporation, (2) | 13,284 | ||||||||||||
718 | World Acceptance Corporation, (2), (3) | 74,758 | ||||||||||||
Total Consumer Finance | 958,415 | |||||||||||||
Containers & Packaging – 0.2% | ||||||||||||||
338 | AEP Industries, Inc., (2) | 20,084 | ||||||||||||
4,279 | Berry Plastics Corporation, (2) | 85,922 | ||||||||||||
16,228 | Graphic Packaging Holding Company, (2) | 136,315 | ||||||||||||
2,179 | Myers Industries, Inc. | 38,830 | ||||||||||||
430 | UFP Technologies, Inc., (2) | 9,912 | ||||||||||||
Total Containers & Packaging | 291,063 | |||||||||||||
Distributors – 0.2% | ||||||||||||||
1,444 | Audiovox Corporation, (2), (3) | 22,396 | ||||||||||||
888 | Core-Mark Holding Company, Inc. | 62,808 | ||||||||||||
3,601 | Pool Corporation | 195,822 | ||||||||||||
493 | Weyco Group, Inc. | 14,164 | ||||||||||||
Total Distributors | 295,190 | |||||||||||||
Diversified Consumer Services – 1.2% | ||||||||||||||
1,361 | American Public Education Inc., (2) | 54,481 | ||||||||||||
1,093 | Ascent Media Corporation, (2) | 92,271 | ||||||||||||
1,417 | Bridgepoint Education Inc., (2) | 27,773 | ||||||||||||
916 | Bright Horizons Family Solutions Inc., (2) | 34,121 | ||||||||||||
855 | Capella Education Company, (2) | 52,087 | ||||||||||||
4,265 | Career Education Corporation, (2), (3) | 23,372 | ||||||||||||
1,214 | Carriage Services Inc. | 24,389 | ||||||||||||
6,128 | Corinthian Colleges Inc., (2) | 13,114 | ||||||||||||
1,974 | Education Management Corporation, (2), (3) | 30,202 | ||||||||||||
3,510 | Grand Canyon Education Inc., (2) | 165,918 | ||||||||||||
4,249 | Hillenbrand Inc. | 119,907 | ||||||||||||
1,805 | ITT Educational Services, Inc., (2) | 72,417 | ||||||||||||
330 | JTH Holdings Inc., Class A Shares, (2), (3) | 6,518 | ||||||||||||
2,100 | K12, Inc., (2) | 38,388 |
72 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Diversified Consumer Services (continued) | ||||||||||||||
4,690 | LifeLock, Incorporated, (2) | $ | 75,462 | |||||||||||
1,856 | Lincoln Educational Services Corporation | 8,872 | ||||||||||||
935 | Mac-Gray Corporation | 19,710 | ||||||||||||
2,134 | Matthews International Corporation | 86,640 | ||||||||||||
2,174 | Outerwall Inc., (2), (3) | 141,267 | ||||||||||||
3,673 | Regis Corporation | 53,259 | ||||||||||||
5,278 | Sothebys Holdings Inc., (3) | 273,928 | ||||||||||||
1,134 | Steiner Leisure Limited, (2) | 63,527 | ||||||||||||
5,600 | Stewart Enterprises Class A | 73,976 | ||||||||||||
835 | Strayer Education Inc. | 33,008 | ||||||||||||
1,640 | Universal Technical Institute Inc. | 21,796 | ||||||||||||
Total Diversified Consumer Services | 1,606,403 | |||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||
157 | California First National Bancorp. | 2,802 | ||||||||||||
851 | Gain Capital Holdings Inc. | 8,910 | ||||||||||||
2,900 | Marketaxess | 189,167 | ||||||||||||
638 | Marlin Business Services Corporation | 17,590 | ||||||||||||
2,029 | Newstar Financial, Inc., (2), (3) | 35,325 | ||||||||||||
4,413 | PHH Corporation, (2) | 106,133 | ||||||||||||
1,758 | PICO Holdings, Inc., (2) | 41,278 | ||||||||||||
939 | Resource America Inc. | 8,104 | ||||||||||||
Total Diversified Financial Services | 409,309 | |||||||||||||
Diversified Telecommunication Services – 0.5% | ||||||||||||||
5,576 | 8X8, Inc., (2) | 63,901 | ||||||||||||
710 | Atlantic Tele-Network, Inc. | 39,348 | ||||||||||||
2,074 | Cbeyond Inc., (2) | 13,357 | ||||||||||||
16,074 | Cincinnati Bell Inc., (2) | 45,972 | ||||||||||||
3,650 | Cogent Communications Group, Inc. | 128,225 | ||||||||||||
3,101 | Consolidated Communications Holdings, Inc., (3) | 57,772 | ||||||||||||
1,604 | FairPoint Communications Inc., (2) | 14,981 | ||||||||||||
2,433 | General Communication, Inc., (2) | 23,138 | ||||||||||||
800 | Hawaiian Telcom Holdco Inc., (2), (3) | 21,264 | ||||||||||||
1,050 | Hickory Tech Corporation | 14,049 | ||||||||||||
1,188 | �� | IDT Corporation | 26,005 | |||||||||||
4,125 | inContact, Inc., (2), (3) | 31,309 | ||||||||||||
2,515 | Inteliquent Incn | 32,318 | ||||||||||||
4,963 | Iridium Communications Inc., (2), (3) | 29,927 | ||||||||||||
1,194 | Lumos Networks Corporation | 26,280 | ||||||||||||
2,801 | Orbcomm, Inc., (2) | 16,890 |
Nuveen Investments | 73 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Diversified Telecommunication Services (continued) | ||||||||||||||
3,719 | Premiere Global Services, Inc., (2) | $ | 33,508 | |||||||||||
901 | PTGI Holdings Inc. | 3,172 | ||||||||||||
594 | Straight Path Communications Inc., Class B Shares, (2) | 3,243 | ||||||||||||
5,133 | TowerStream Corporation, (2), (3) | 12,319 | ||||||||||||
1,434 | VocalTec Communications Limited, (2), (3) | 16,176 | ||||||||||||
12,009 | Vonage Holdings Corporation, (2) | 44,794 | ||||||||||||
Total Diversified Telecommunication Services | 697,948 | |||||||||||||
Electric Utilities – 1.2% | ||||||||||||||
3,087 | ALLETE Inc | 155,986 | ||||||||||||
4,673 | Cleco Corporation | 216,547 | ||||||||||||
3,109 | El Paso Electric Company | 109,344 | ||||||||||||
3,299 | Empire District Electric Company | 74,195 | ||||||||||||
3,884 | IDACORP, INC | 200,414 | ||||||||||||
1,787 | MGE Energy, Inc. | 100,626 | ||||||||||||
679 | NRG Yield Inc., Class A Shares, (2) | 24,050 | ||||||||||||
2,803 | Otter Tail Power Corporation | 83,613 | ||||||||||||
6,158 | PNM Resources Inc. | 147,299 | ||||||||||||
5,850 | Portland General Electric Company, (3) | 167,895 | ||||||||||||
3,919 | UIL Holdings Corporation | 150,960 | ||||||||||||
1,067 | Unitil Corp. | 32,245 | ||||||||||||
3,204 | UNS Energy Corporation | 158,534 | ||||||||||||
Total Electric Utilities | 1,621,708 | |||||||||||||
Electrical Equipment – 1.4% | ||||||||||||||
3,312 | Acuity Brands Inc. | 332,889 | ||||||||||||
3,772 | American Superconductor Corporation, (2), (3) | 8,223 | ||||||||||||
1,970 | AZZ Inc. | 88,453 | ||||||||||||
3,572 | Brady Corporation | 104,267 | ||||||||||||
23,545 | Capstone Turbine Corporation, (2), (3) | 29,902 | ||||||||||||
664 | Coleman Cable Inc. | 16,334 | ||||||||||||
1,597 | Encore Wire Corporation | 79,099 | ||||||||||||
3,721 | EnerSys | 246,888 | ||||||||||||
1,234 | Enphase Energy Incorporated, (2), (3) | 9,317 | ||||||||||||
3,666 | Franklin Electric Company, Inc. | 138,758 | ||||||||||||
12,267 | Fuelcell Energy Inc., (2), (3) | 16,438 | ||||||||||||
3,985 | Generac Holdings Inc. | 196,660 | ||||||||||||
3,846 | General Cable Corporation, (3) | 126,649 | ||||||||||||
1,316 | Global Power Equipment Group Inc. | 26,794 | ||||||||||||
9,033 | GrafTech International Ltd., (2), (3) | 80,394 | ||||||||||||
3,947 | II VI Inc., (2) | 67,336 | ||||||||||||
1,671 | LSI Industries, Inc., (3) | 15,390 |
74 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Electrical Equipment (continued) | ||||||||||||||
3,607 | Polypore International Inc., (2), (3) | $ | 163,036 | |||||||||||
711 | Powell Industries Inc., (2) | 44,672 | ||||||||||||
167 | Power Solutions International Inc., (2) | 9,729 | ||||||||||||
1,465 | PowerSecure International, Inc., (2) | 26,487 | ||||||||||||
199 | Preformed Line Products Company | 16,720 | ||||||||||||
2,292 | Revolution Lighting Technologies Inc., (2) | 6,853 | ||||||||||||
2,096 | Thermon Group Holdings Inc., (2) | 49,277 | ||||||||||||
1,366 | Vicor Corporation, (2) | 12,034 | ||||||||||||
Total Electrical Equipment | 1,912,599 | |||||||||||||
Electronic Equipment & Instruments – 2.4% | ||||||||||||||
1,516 | Aeroflex Holding Corporation, (2) | 11,749 | ||||||||||||
1,099 | Agilysys Inc., (2) | 12,913 | ||||||||||||
2,096 | Anixter International Inc., (2) | 179,187 | ||||||||||||
743 | Audience Incorporated, (2) | 8,485 | ||||||||||||
1,111 | Badger Meter Inc., (3) | 57,783 | ||||||||||||
3,403 | Belden Inc. | 228,886 | ||||||||||||
4,203 | Benchmark Electronics Inc., (2) | 95,534 | ||||||||||||
3,172 | Checkpoint Systems Inc., (2) | 53,987 | ||||||||||||
6,718 | Cognex Corporation | 209,938 | ||||||||||||
1,882 | Coherent Inc. | 124,570 | ||||||||||||
2,592 | CTS Corporation | 48,263 | ||||||||||||
2,824 | Daktronics Inc. | 33,775 | ||||||||||||
1,412 | DTS, Inc., (2) | 28,240 | ||||||||||||
1,452 | Electro Rent Corporation | 26,339 | ||||||||||||
1,843 | Electro Scientific Industries Inc. | 22,079 | ||||||||||||
2,192 | Fabrinet, (2) | 36,694 | ||||||||||||
1,321 | FARO Technologies, Inc., (2) | 62,748 | ||||||||||||
2,981 | FEI Company, (3) | 265,547 | ||||||||||||
2,347 | GSI Group, Inc., (2) | 23,423 | ||||||||||||
3,364 | Insight Enterprises Inc., (2) | 70,879 | ||||||||||||
4,388 | InvenSense Incorporated, (2), (3) | 74,113 | ||||||||||||
3,056 | Itron Inc., (2) | 130,400 | ||||||||||||
3,472 | Kemet Corporation, (2) | 19,686 | ||||||||||||
1,708 | Littelfuse Inc. | 145,231 | ||||||||||||
2,256 | Maxwell Technologies, Inc., (2) | 16,920 | ||||||||||||
1,194 | Measurement Specialties, Inc., (2) | 66,542 | ||||||||||||
2,498 | Mercury Computer Systems Inc., (2) | 23,032 | ||||||||||||
205 | Mesa Laboratories, Inc. | 14,274 | ||||||||||||
2,865 | Methode Electronics, Inc. | 73,287 |
Nuveen Investments | 75 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Electronic Equipment & Instruments (continued) | ||||||||||||||
1,223 | MTS Systems Corporation | $ | 79,886 | |||||||||||
679 | Multi Fineline Electronix, Inc., (2), (3) | 9,105 | ||||||||||||
1,942 | Neonode Incorporated, (2), (3) | 10,506 | ||||||||||||
3,021 | Newport Corporation, (2) | 47,943 | ||||||||||||
1,541 | OSI Systems Inc., (2) | 112,246 | ||||||||||||
1,610 | Park Electrochemical Corporation | 45,161 | ||||||||||||
721 | PC Connection, Inc. | 14,413 | ||||||||||||
2,636 | Plexus Corporation, (2) | 100,906 | ||||||||||||
1,798 | Radisys Corporation, (2) | 5,430 | ||||||||||||
3,129 | RealD Inc., (2) | 21,653 | ||||||||||||
876 | Richardson Electronics Limited | 10,092 | ||||||||||||
2,185 | Rofin Sinar Technologies Inc., (2) | 57,356 | ||||||||||||
1,319 | Rogers Corporation, (2) | 80,406 | ||||||||||||
6,399 | Sanmina-SCI Corporation, (2) | 93,169 | ||||||||||||
2,155 | ScanSource, Inc., (2) | 82,881 | ||||||||||||
3,095 | Speed Commerce Inc., (2) | 11,359 | ||||||||||||
2,041 | SYNNEX Corporation, (2) | 125,113 | ||||||||||||
4,092 | TTM Technologies, Inc., (2) | 35,805 | ||||||||||||
782 | Uni-Pixel Inc., (2), (3) | 12,864 | ||||||||||||
3,109 | Universal Display Corporation, (2), (3) | 99,177 | ||||||||||||
285 | Viasystems Group Inc., (2) | 4,275 | ||||||||||||
912 | Vishay Precision Group Inc., (2), (3) | 14,957 | ||||||||||||
1,286 | Zygo Corporation, (2) | 19,856 | ||||||||||||
Total Electronic Equipment & Instruments | 3,259,063 | |||||||||||||
Energy Equipment & Services – 1.8% | ||||||||||||||
2,313 | Basic Energy Services, Inc., (2) | 33,932 | ||||||||||||
667 | Bolt Technology Corporation | 11,933 | ||||||||||||
2,794 | Bristow Group Inc. | 224,833 | ||||||||||||
3,483 | C&J Energy Services Inc., (2) | 80,248 | ||||||||||||
7,571 | Cal Dive International Inc., (2), (3) | 14,915 | ||||||||||||
1,530 | Carbo Ceramics Inc., (3) | 191,770 | ||||||||||||
623 | Dawson Geophysical Company, (2) | 18,217 | ||||||||||||
1,555 | ERA Group Incorporated, (2) | 49,138 | ||||||||||||
4,451 | Exterran Holdings, Inc., (2) | 127,076 | ||||||||||||
3,042 | Forum Energy Technologies Incorporated, (2) | 89,009 | ||||||||||||
998 | Geospace Technologies Corporation, (2) | 97,225 | ||||||||||||
1,765 | Global Geophysical Services Inc., (2) | 4,218 | ||||||||||||
1,117 | Gulf Island Fabrication, Inc. | 28,171 | ||||||||||||
2,063 | Gulfmark Offshore Inc. | 102,696 |
76 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Energy Equipment & Services (continued) | ||||||||||||||
8,189 | Helix Energy Solutions Group, (2) | $ | 193,752 | |||||||||||
12,329 | Hercules Offshore Inc., (2) | 83,837 | ||||||||||||
2,767 | Hornbeck Offshore Services Inc., (2) | 152,932 | ||||||||||||
10,294 | ION Geophysical Corporation, (2) | 47,764 | ||||||||||||
11,774 | Key Energy Services Inc., (2) | 92,073 | ||||||||||||
2,016 | Matrix Service Company, (2) | 41,913 | ||||||||||||
992 | Mitcham Industries, Inc., (2) | 16,507 | ||||||||||||
957 | Natural Gas Services Group, (2) | 26,786 | ||||||||||||
6,660 | Newpark Resources Inc., (2), (3) | 84,915 | ||||||||||||
11,027 | Nuverra Environmental Solutions, (2) | 26,906 | ||||||||||||
9,208 | Parker Drilling Company, (2), (3) | 66,298 | ||||||||||||
972 | PHI Inc Non-Voting, (2) | 38,705 | ||||||||||||
4,806 | Pioneer Energy Services Corporation, (2) | 40,370 | ||||||||||||
916 | RigNet, Inc., (2) | 33,764 | ||||||||||||
1,554 | SeaCor Smit Inc., (3) | 151,981 | ||||||||||||
2,335 | Tesco Corporation, (2) | 40,115 | ||||||||||||
6,050 | TETRA Technologies, (2) | 78,469 | ||||||||||||
1,167 | TGC Industries Inc. | 8,601 | ||||||||||||
15,538 | Vantage Drilling Company, (2) | 27,658 | ||||||||||||
3,090 | Willbros Group Inc., (2) | 30,158 | ||||||||||||
Total Energy Equipment & Services | 2,356,885 | |||||||||||||
Food & Staples Retailing – 1.3% | ||||||||||||||
1,445 | Andersons, Inc. | 107,190 | ||||||||||||
91 | Arden Group, Inc. | 11,830 | ||||||||||||
2,964 | Casey’s General Stores, Inc. | 216,016 | ||||||||||||
1,213 | Fairway Group Holdings Inc., (2), (3) | 29,634 | ||||||||||||
3,823 | Harris Teeter Supermarkets Incorporated | 188,550 | ||||||||||||
975 | Ingles Markets, Inc., (3) | 25,165 | ||||||||||||
948 | Nash Finch Company | 26,601 | ||||||||||||
685 | Natural Grocers by Vitamin Cottage Incorporated, (2), (3) | 27,332 | ||||||||||||
1,821 | Pantry, Inc., (2) | 24,383 | ||||||||||||
1,458 | PriceSmart, Inc., (3) | 165,906 | ||||||||||||
56,445 | Rite Aid Corporation, (2) | 300,852 | ||||||||||||
1,947 | Roundys Inc. | 18,107 | ||||||||||||
1,693 | Spartan Stores, Inc., (3) | 39,836 | ||||||||||||
15,692 | SUPERVALU INC., (2) | 110,315 | ||||||||||||
1,395 | Susser Holdings Corporation, (2), (3) | 76,502 | ||||||||||||
1,082 | The Chef’s Warehouse Inc., (2) | 25,925 | ||||||||||||
3,812 | United Natural Foods Inc., (2) | 272,367 |
Nuveen Investments | 77 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Food & Staples Retailing (continued) | ||||||||||||||
489 | Village Super Market, Inc. | $ | 17,927 | |||||||||||
851 | Weis Markets Inc. | 43,546 | ||||||||||||
Total Food & Staples Retailing | 1,727,984 | |||||||||||||
Food Products – 1.5% | ||||||||||||||
208 | Alico Inc. | 8,312 | ||||||||||||
1,059 | Annie’s Incorporated, (2) | 50,038 | ||||||||||||
4,087 | B&G Foods Inc. | 138,345 | ||||||||||||
4,600 | Boulder Brands Inc., (2), (3) | 75,394 | ||||||||||||
946 | Calavo Growers, Inc. | 28,087 | ||||||||||||
1,148 | Cal-Maine Foods, Inc. | 58,238 | ||||||||||||
3,591 | Chiquita Brands International Inc., (2) | 37,167 | ||||||||||||
9,137 | Darling International Inc., (2) | 212,618 | ||||||||||||
1,721 | Diamond Foods Inc., (2), (3) | 42,010 | ||||||||||||
3,970 | Dole Food Company Inc., (2) | 53,794 | ||||||||||||
503 | Farmer Brothers Company, (2), (3) | 9,084 | ||||||||||||
2,727 | Fresh Del Monte Produce Inc. | 72,511 | ||||||||||||
207 | Griffin Land & Nurseries, Inc. | 6,831 | ||||||||||||
2,968 | Hain Celestial Group Inc., (2), (3) | 247,027 | ||||||||||||
1,086 | Inventure Group, (2) | 12,228 | ||||||||||||
1,155 | J&K Snack Foods Corporation | 98,833 | ||||||||||||
632 | John B Sanfillippo & Son, Inc. | 15,535 | ||||||||||||
1,431 | Lancaster Colony Corporation | 118,759 | ||||||||||||
357 | Lifeway Foods, Inc. | 5,223 | ||||||||||||
773 | Limoneira Company | 20,361 | ||||||||||||
1,539 | Omega Protein Corporation, (2) | 14,405 | ||||||||||||
4,685 | Pilgrim’s Pride Corporation, (2) | 66,386 | ||||||||||||
2,526 | Post Holdings Inc., (2) | 108,492 | ||||||||||||
1,779 | Sanderson Farms Inc. | 112,451 | ||||||||||||
22 | Seaboard Corproation | 60,060 | ||||||||||||
629 | Seneca Foods Corporation, (2) | 18,442 | ||||||||||||
3,676 | Snyders Lance Inc. | 110,243 | ||||||||||||
1,513 | Tootsie Roll Industries Inc., (3) | 48,416 | ||||||||||||
2,802 | Treehouse Foods Inc., (2) | 205,275 | ||||||||||||
Total Food Products | 2,054,565 | |||||||||||||
Gas Utilities – 0.8% | ||||||||||||||
744 | Chesapeake Utilities Corporation | 40,481 | ||||||||||||
530 | Delta Natural Gas Company, Inc. | 11,830 | ||||||||||||
2,524 | Laclede Group Inc. | 118,805 | ||||||||||||
3,229 | New Jersey Resources Corporation | 148,631 |
78 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Gas Utilities (continued) | ||||||||||||||
2,083 | Northwest Natural Gas Company | $ | 90,465 | |||||||||||
5,837 | Piedmont Natural Gas Company, (3) | 199,275 | ||||||||||||
2,470 | South Jersey Industries Inc., (3) | 147,089 | ||||||||||||
3,581 | Southwest Gas Corporation | 194,305 | ||||||||||||
3,725 | WGL Holdings Inc. | 167,662 | ||||||||||||
Total Gas Utilities | 1,118,543 | |||||||||||||
Health Care Equipment & Supplies – 3.2% | ||||||||||||||
1,708 | Abaxis, Inc. | 61,027 | ||||||||||||
2,995 | Abiomed, Inc., (2) | 71,820 | ||||||||||||
5,730 | Accuray, Inc., (2), (3) | 38,678 | ||||||||||||
5,634 | Align Technology, Inc., (2), (3) | 321,476 | ||||||||||||
4,793 | Alphatec Holdings, Inc., (2) | 8,723 | ||||||||||||
947 | Analogic Corporation | 87,342 | ||||||||||||
1,904 | AngioDynamics, Inc., (2) | 29,931 | ||||||||||||
928 | Anika Therapeutics, Inc., (2) | 27,719 | ||||||||||||
8,714 | Antares Pharma Inc., (2), (3) | 34,856 | ||||||||||||
2,179 | Arthrocare Corporation, (2) | 81,582 | ||||||||||||
1,619 | AtriCure, Inc., (2) | 22,423 | ||||||||||||
121 | ATRION Corporation | 32,329 | ||||||||||||
2,466 | Biolase Technology, Inc., (2), (3) | 4,611 | ||||||||||||
2,534 | Cantel Medical Corporation | 88,943 | ||||||||||||
1,618 | Cardiovascular Systems, Inc., (2) | 49,106 | ||||||||||||
5,389 | Cerus Corporation, (2), (3) | 34,005 | ||||||||||||
2,144 | Conmed Corporation | 77,763 | ||||||||||||
2,123 | CryoLife Inc. | 19,086 | ||||||||||||
1,135 | Cutera, Inc., (2) | 11,407 | ||||||||||||
1,991 | Cyberonics, (2) | 115,000 | ||||||||||||
1,481 | Cynosure, Inc., (2), (3) | 32,004 | ||||||||||||
1,059 | Derma Sciences Inc., (2), (3) | 12,253 | ||||||||||||
5,466 | DexCom, Inc., (2) | 157,038 | ||||||||||||
4,854 | Endologix, Inc., (2) | 87,712 | ||||||||||||
722 | Exactech, Inc., (2) | 16,389 | ||||||||||||
2,767 | Genmark Diagnostics Inc., (2), (3) | 33,481 | ||||||||||||
4,222 | Globus Medical Inc, Class A, (2) | 81,062 | ||||||||||||
1,848 | Greatbatch, Inc., (2) | 70,446 | ||||||||||||
3,949 | Haemonetics Corporation, (2) | 160,171 | ||||||||||||
1,264 | Heartware International Inc., (2) | 91,716 | ||||||||||||
1,001 | ICU Medical, Inc., (2) | 61,862 | ||||||||||||
4,131 | Insulet Corporation, (2) | 161,192 |
Nuveen Investments | 79 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Health Care Equipment & Supplies (continued) | ||||||||||||||
1,545 | Integra Lifesciences Holdings Corporation, (2), (3) | $ | 70,730 | |||||||||||
2,475 | Invacare Corporation | 53,138 | ||||||||||||
3,251 | Mako Surgical Corporation, (2) | 96,912 | ||||||||||||
3,765 | Masimo Corporation, (3) | 96,459 | ||||||||||||
1,125 | Medical Action Industries, Inc., (2) | 6,818 | ||||||||||||
3,206 | Meridian Bioscience, Inc. | 79,252 | ||||||||||||
3,290 | Merit Medical Systems, Inc., (2) | 52,607 | ||||||||||||
2,350 | Natus Medical, Inc., (2) | 46,366 | ||||||||||||
9,244 | Navidea Biopharmaceuticals Incorporated, (2) | 18,488 | ||||||||||||
2,774 | Neogen Corporation, (2), (3) | 128,191 | ||||||||||||
3,420 | NuVasive, Inc., (2) | 108,688 | ||||||||||||
4,618 | Nxstage Medical, Inc., (2) | 61,281 | ||||||||||||
4,293 | OraSure Technologies, Inc., (2), (3) | 27,990 | ||||||||||||
1,503 | Orthofix International NV, (2) | 30,796 | ||||||||||||
1,085 | �� | PhotoMedex, Inc., (2) | 13,714 | |||||||||||
2,170 | Quidel Corporation, (2), (3) | 53,599 | ||||||||||||
838 | Rochester Medical Corporation, (2) | 16,743 | ||||||||||||
3,034 | Rockwell Medical Technologies, Inc., (2), (3) | 34,952 | ||||||||||||
4,350 | RTI Biologics Inc., (2) | 12,137 | ||||||||||||
5,485 | Solta Medical Inc., (2) | 10,147 | ||||||||||||
3,119 | Spectranetics Corporation, (2) | 65,156 | ||||||||||||
2,840 | STAAR Surgical Company, (2) | 37,602 | ||||||||||||
4,556 | Steris Corporation | 205,886 | ||||||||||||
1,120 | Surmodics Inc., (2) | 26,410 | ||||||||||||
2,882 | Symmetry Medical, Inc., (2) | 23,344 | ||||||||||||
1,977 | TearLab Corporation, (2), (3) | 20,620 | ||||||||||||
4,431 | Thoratec Corporation, (2) | 191,375 | ||||||||||||
2,011 | Tornier N.V, (2), (3) | 43,257 | ||||||||||||
7,053 | Unilife Corporation, (2), (3) | 21,371 | ||||||||||||
255 | Utah Medical Products, Inc. | 14,193 | ||||||||||||
1,277 | Vascular Solutions, Inc., (2) | 25,055 | ||||||||||||
4,217 | Volcano Corporation, (2), (3) | 80,840 | ||||||||||||
4,982 | West Pharmaceutical Services Inc. | 240,880 | ||||||||||||
3,123 | Wright Medical Group, Inc., (2), (3) | 84,852 | ||||||||||||
1,367 | Zeltiq Aesthetics Inc, (2) | 17,730 | ||||||||||||
Total Health Care Equipment & Supplies | 4,300,732 | |||||||||||||
Health Care Providers & Services – 2.3% | ||||||||||||||
2,738 | Acadia Healthcare Company Inc., (2), (3) | 118,720 | ||||||||||||
4,546 | Accretive Health Inc., (2) | 37,550 |
80 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Health Care Providers & Services (continued) | ||||||||||||||
423 | Addus HomeCare Corporation, (2) | $ | 10,935 | |||||||||||
3,006 | Air Methods Corporation, (3) | 131,422 | ||||||||||||
386 | Alliance Imaging Inc., (2) | 9,731 | ||||||||||||
570 | Almost Family, Inc. | 10,961 | ||||||||||||
2,432 | Amedisys, Inc., (2), (3) | 39,593 | ||||||||||||
3,559 | AMN Healthcare Services Inc., (2) | 44,132 | ||||||||||||
2,473 | AmSurg Corporation, (2) | 106,067 | ||||||||||||
1,891 | Bio-Reference Laboratories, Inc., (2), (3) | 61,287 | ||||||||||||
4,506 | Bioscrip, Inc., (2) | 31,587 | ||||||||||||
2,214 | Capital Senior Living Corporation, (2), (3) | 49,107 | ||||||||||||
4,207 | Centene Corporation, (2) | 236,265 | ||||||||||||
1,360 | Chemed Corporation, (3) | 92,235 | ||||||||||||
919 | Chindex International, Inc., (2) | 15,467 | ||||||||||||
882 | Corvel Corporation, (2) | 36,691 | ||||||||||||
2,098 | Cross Country Healthcare, Inc., (2) | 12,462 | ||||||||||||
3,115 | Emeritus Corporation, (2) | 59,683 | ||||||||||||
1,503 | Ensign Group Inc. | 63,998 | ||||||||||||
2,340 | ExamWorks Group Inc., (2) | 60,489 | ||||||||||||
3,313 | Five Star Quality Care Inc., (2), (3) | 16,797 | ||||||||||||
2,421 | Gentiva Health Services, Inc., (2) | 27,720 | ||||||||||||
2,680 | Hanger Orthopedic Group Inc., (2) | 98,356 | ||||||||||||
6,743 | HealthSouth Corporation | 236,747 | ||||||||||||
2,644 | Healthways Inc., (2) | 25,462 | ||||||||||||
1,296 | IPC The Hospitalist Company, Inc., (2) | 71,008 | ||||||||||||
4,178 | Kindred Healthcare Inc. | 57,991 | ||||||||||||
736 | Landauer Inc. | 35,622 | ||||||||||||
933 | LHC Group, Inc., (2) | 19,220 | ||||||||||||
2,093 | Magellan Health Services, Inc., (2) | 122,859 | ||||||||||||
2,191 | Molina Healthcare Inc., (2) | 69,323 | ||||||||||||
990 | MWI Veterinary Supply, Inc., (2) | 157,054 | ||||||||||||
831 | National Healthcare Corporation | 40,204 | ||||||||||||
758 | National Research Corporation, (2) | 13,295 | ||||||||||||
4,895 | Owens and Minor Inc., (3) | 183,171 | ||||||||||||
2,296 | Pharmerica Corporation, (2) | 33,889 | ||||||||||||
820 | Providence Service Corporation, (2) | 24,510 | ||||||||||||
3,762 | Select Medical Corporation | 31,902 | ||||||||||||
1,533 | Skilled Healthcare Group Inc., (2) | 6,531 | ||||||||||||
5,310 | Team Health Holdings Inc., (2) | 230,666 | ||||||||||||
1,831 | Triple-S Management Corporation, Class B Shares, (2) | 32,610 |
Nuveen Investments | 81 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Health Care Providers & Services (continued) | ||||||||||||||
2,969 | Universal American Corporation | $ | 22,030 | |||||||||||
932 | US Physical Therapy, Inc. | 29,749 | ||||||||||||
77 | USMD Holdings Inc., (2) | 2,143 | ||||||||||||
3,360 | Wellcare Health Plans Inc., (2) | 224,045 | ||||||||||||
Total Health Care Providers & Services | 3,041,286 | |||||||||||||
Health Care Technology – 0.9% | ||||||||||||||
2,831 | AthenaHealth Inc., (2), (3) | 377,967 | ||||||||||||
799 | Computer Programs and Systems, Inc. | 45,575 | ||||||||||||
1,040 | Greenway Medical Technologies Inc., (2) | 21,164 | ||||||||||||
1,557 | Healthstream, Inc., (2) | 55,616 | ||||||||||||
6,779 | HMS Holdings Corporation, (2) | 143,240 | ||||||||||||
4,710 | MedAssets Inc., (2) | 108,471 | ||||||||||||
2,056 | Medidata Solutions, Inc., (2) | 226,797 | ||||||||||||
5,047 | Merge Healthcare Incorporated, (2) | 12,819 | ||||||||||||
2,654 | Omnicell, Inc., (2) | 61,228 | ||||||||||||
3,084 | Quality Systems Inc. | 70,377 | ||||||||||||
1,518 | Vocera Communications Incorporated, (2) | 25,548 | ||||||||||||
Total Health Care Technology | 1,148,802 | |||||||||||||
Hotels, Restaurants & Leisure – 2.6% | ||||||||||||||
1,846 | AFC Enterprises, Inc., (2) | 82,295 | ||||||||||||
106 | Biglari Holdings Inc., (2), (3) | 46,218 | ||||||||||||
1,906 | BJ’s Restaurants, Inc., (2) | 51,576 | ||||||||||||
4,275 | Bloomin Brands, (2) | 107,003 | ||||||||||||
2,156 | Bob Evans Farms | 123,086 | ||||||||||||
5,361 | Boyd Gaming Corporation, (2) | 56,612 | ||||||||||||
1,514 | Bravo Brio Restaurant Group, (2) | 22,604 | ||||||||||||
1,450 | Buffalo Wild Wings, Inc., (2), (3) | 206,741 | ||||||||||||
3,108 | Caesar’s Entertainment Corporation, (2), (3) | 54,141 | ||||||||||||
1,830 | Carrols Restaurant Group, Inc., (2) | 10,614 | ||||||||||||
1,519 | CBRL Group Inc., (3) | 166,893 | ||||||||||||
1,374 | CEC Entertainment Inc. | 63,685 | ||||||||||||
3,733 | Cheesecake Factory Inc., (3) | 176,384 | ||||||||||||
1,063 | Churchill Downs Inc. | 91,322 | ||||||||||||
1,254 | Chuy’s Holdings Inc., (2), (3) | 47,150 | ||||||||||||
826 | Del Friscos Restaurant Group, (2) | 14,951 | ||||||||||||
7,094 | Denny’s Corporation, (2) | 45,047 | ||||||||||||
1,374 | Diamond Resorts International Inc., (2) | 26,216 | ||||||||||||
1,279 | DineEquity Inc., (3) | 104,968 | ||||||||||||
829 | Diversified Restaurant Holdings Inc., (2) | 5,728 |
82 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Hotels, Restaurants & Leisure (continued) | ||||||||||||||
499 | Einstein Noah Restaurant Group | $ | 8,902 | |||||||||||
1,532 | Fiesta Restaurant Group, (2) | 64,941 | ||||||||||||
557 | Ignite Restaurant Group, Incorporated, (2), (3) | 8,945 | ||||||||||||
3,044 | Interval Leisure Group Inc. | 73,878 | ||||||||||||
2,153 | Intl Speedway Corporation, (3) | 70,425 | ||||||||||||
1,636 | Isle of Capri Casinos, (2) | 13,268 | ||||||||||||
3,439 | Jack in the Box Inc., Term Loan, (2) | 139,899 | ||||||||||||
1,292 | Jamba, Inc., (2) | 14,755 | ||||||||||||
5,062 | Krispy Kreme Doughnuts Inc., (2) | 122,804 | ||||||||||||
3,328 | Life Time Fitness Inc., (2), (3) | 151,158 | ||||||||||||
1,543 | Luby’s Inc., (2) | 11,819 | ||||||||||||
1,432 | Marcus Corporation | 20,564 | ||||||||||||
2,254 | Marriott Vacations World, (2) | 112,880 | ||||||||||||
663 | Monarch Casino & Resort, Inc., (2) | 11,211 | ||||||||||||
2,059 | Morgans Hotel Group Company, (2), (3) | 14,742 | ||||||||||||
2,231 | Multimedia Games, Inc., (2) | 72,530 | ||||||||||||
210 | Nathan’s Famous, Inc., (2) | 10,777 | ||||||||||||
439 | Noodles & Company, (2), (3) | 19,224 | ||||||||||||
7,406 | Orient Express Hotels Limited, (2) | 98,574 | ||||||||||||
1,238 | Papa John’s International, Inc. | 93,679 | ||||||||||||
4,514 | Pinnacle Entertainment Inc., (2) | 105,628 | ||||||||||||
1,095 | Red Robin Gourmet Burgers, Inc., (2) | 83,417 | ||||||||||||
4,710 | Ruby Tuesday, Inc., (2), (3) | 27,930 | ||||||||||||
2,770 | Ruth’s Chris Steak House, Inc. | 33,766 | ||||||||||||
3,690 | Scientific Games Corporation, (2) | 67,453 | ||||||||||||
4,351 | Shuffle Master Inc., (2) | 100,856 | ||||||||||||
4,340 | Sonic Corporation, (2), (3) | 83,762 | ||||||||||||
899 | Speedway Motorsports Inc. | 16,416 | ||||||||||||
4,826 | Texas Roadhouse, Inc. | 132,329 | ||||||||||||
1,857 | Town Sports International, (3) | 23,992 | ||||||||||||
2,775 | Vail Resorts, Inc., (3) | 195,499 | ||||||||||||
Total Hotels, Restaurants & Leisure | 3,509,257 | |||||||||||||
Household Durables – 1.0% | ||||||||||||||
857 | Bassett Furniture, Inc. | 11,998 | ||||||||||||
1,939 | Beazer Homes USA, Inc., (2), (3) | 35,232 | ||||||||||||
719 | Blyth Inc., (3) | 9,929 | ||||||||||||
539 | Cavco Industries, Inc., (2), (3) | 31,569 | ||||||||||||
655 | CSS Industries Inc. | 16,958 | ||||||||||||
1,918 | Ethan Allen Interiors Inc., (3) | 51,096 |
Nuveen Investments | 83 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Household Durables (continued) | ||||||||||||||
755 | EveryWare Global Inc., (2) | $ | 7,263 | |||||||||||
379 | Flexsteel Industries, Inc. | 10,407 | ||||||||||||
2,467 | Helen of Troy Limited, (2) | 115,258 | ||||||||||||
831 | Hooker Furniture Corporation | 13,130 | ||||||||||||
8,748 | Hovnanian Enterprises Inc., (2), (3) | 44,265 | ||||||||||||
2,185 | Irobot Corporation, (2) | 74,006 | ||||||||||||
6,459 | KB Home, (3) | 109,609 | ||||||||||||
4,048 | La Z Boy Inc. | 93,428 | ||||||||||||
1,623 | Libbey Inc., (2) | 34,651 | ||||||||||||
790 | Lifetime Brands, Inc. | 12,371 | ||||||||||||
1,868 | M/I Homes, Inc., (2), (3) | 38,238 | ||||||||||||
3,020 | MDC Holdings Inc. | 88,154 | ||||||||||||
2,795 | Meritage Corporation, (2) | 126,865 | ||||||||||||
382 | Nacco Industries Inc. | 21,763 | ||||||||||||
3,565 | Ryland Group Inc., (3) | 143,313 | ||||||||||||
1,393 | Skullcandy Inc., (2) | 8,748 | ||||||||||||
11,456 | Standard Pacific Corporation, (2) | 90,846 | ||||||||||||
1,142 | Tri Pointe Homes, Incorporated, (2), (3) | 18,181 | ||||||||||||
598 | UCP Inc., Class A, (2) | 8,432 | ||||||||||||
1,159 | Univeral Electronics Inc., (2) | 45,097 | ||||||||||||
525 | WCI Communities Inc., (2), (3) | 9,471 | ||||||||||||
1,063 | William Lyon Homes Inc, Class A Shares, (2) | 24,630 | ||||||||||||
2,377 | Zagg Inc., (2), (3) | 11,267 | ||||||||||||
Total Household Durables | 1,306,175 | |||||||||||||
Household Products – 0.2% | ||||||||||||||
3,236 | Central Garden & Pet Company, (2) | 23,817 | ||||||||||||
2,552 | Harbinger Group Inc., (2) | 27,791 | ||||||||||||
373 | Oil Dri Corporation, (3) | 13,238 | ||||||||||||
463 | Orchids Paper Products Company | 14,122 | ||||||||||||
1,663 | Spectrum Brands Inc. | 109,625 | ||||||||||||
1,195 | WD 40 Company | 86,626 | ||||||||||||
Total Household Products | 275,219 | |||||||||||||
Independent Power Producers & Energy Traders – 0.2% | ||||||||||||||
9,263 | Atlantic Power Corporation | 41,591 | ||||||||||||
7,730 | Dynegy Inc., (2), (3) | 150,194 | ||||||||||||
997 | Genie Energy Limited, Class B Shares, (2) | 10,299 | ||||||||||||
1,366 | Ormat Technologies Inc. | 35,612 | ||||||||||||
Total Independent Power Producers & Energy Traders | 237,696 | |||||||||||||
Industrial Conglomerates – 0.1% | ||||||||||||||
2,810 | Raven Industries, Inc. | 93,742 |
84 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Insurance – 2.1% | ||||||||||||||
3,478 | Ambac Financial Group, Inc., (2) | $ | 70,221 | |||||||||||
4,949 | American Equity Investment Life Holding Company, (3) | 103,137 | ||||||||||||
1,421 | Amerisafe, Inc. | 54,709 | ||||||||||||
2,398 | Amtrust Financial Services, Inc., (3) | 91,987 | ||||||||||||
2,101 | Argo Group International Holdings Inc. | 88,200 | ||||||||||||
714 | Baldwin & Lyons, Class B | 19,514 | ||||||||||||
3,358 | Citizens Inc., (2) | 28,207 | ||||||||||||
17,175 | CNO Financial Group Inc. | 267,587 | ||||||||||||
2,030 | Crawford & Co | 22,310 | ||||||||||||
534 | Donegal Group, Inc., B | 8,464 | ||||||||||||
498 | Eastern Insurance Holdings, Inc. | 12,171 | ||||||||||||
1,419 | eHealth, Inc., (2) | 60,478 | ||||||||||||
349 | EMC Insurance Group Inc. | 11,880 | ||||||||||||
2,393 | Employers Holdings, Inc. | 71,958 | ||||||||||||
626 | Enstar Group, Limited, (2) | 85,092 | ||||||||||||
686 | FBL Financial Group Inc. | 30,692 | ||||||||||||
8,363 | First American Corporation | 216,267 | ||||||||||||
496 | Fortegra Financial Corp, (2) | 3,656 | ||||||||||||
727 | Global Indemnity PLC, (2) | 17,906 | ||||||||||||
2,181 | Greenlight Capital Re, Ltd, (2) | 67,153 | ||||||||||||
1,098 | Hallmark Financial Services, Inc., (2) | 9,344 | ||||||||||||
717 | HCI Group Inc., (3) | 31,505 | ||||||||||||
328 | Health Insurance Innnovations Inc., (2) | 3,982 | ||||||||||||
4,797 | Hilltop Holdings Inc., (2) | 83,180 | ||||||||||||
3,069 | Horace Mann Educators Corporation | 85,011 | ||||||||||||
605 | Independence Holding Company | 8,301 | ||||||||||||
891 | Infinity Property and Casualty Corporation | 61,105 | ||||||||||||
103 | Investors Title Company | 8,048 | ||||||||||||
306 | Kansas City Life Insurance Company | 14,045 | ||||||||||||
3,853 | Maiden Holdings, Ltd | 42,190 | ||||||||||||
3,856 | Meadowbrook Insurance Group, Inc. | 25,604 | ||||||||||||
3,578 | Montpelier Re Holdings Limited | 98,789 | ||||||||||||
514 | National Interstate Corporation | 13,431 | ||||||||||||
169 | National Western Life Insurance Company, (3) | 35,152 | ||||||||||||
800 | Navigators Group, Inc., (2) | 44,992 | ||||||||||||
1,569 | OneBeacon Insurance Group Limited, Class A | 25,041 | ||||||||||||
449 | Phoenix Companies Inc., (2) | 17,318 | ||||||||||||
2,263 | Platinum Underwriters Holdings Limited | 140,736 | ||||||||||||
4,406 | Primerica Inc. | 189,238 |
Nuveen Investments | 85 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Insurance (continued) | ||||||||||||||
1,533 | RLI Corporation, (3) | $ | 144,838 | |||||||||||
996 | Safety Insurance Group, Inc. | 54,471 | ||||||||||||
4,292 | Selective Insurance Group Inc. | 112,751 | ||||||||||||
1,155 | State Auto Financial Corporation | 21,945 | ||||||||||||
1,646 | Stewart Information Services Corporation | 51,553 | ||||||||||||
6,299 | Symetra Financial Corporation | 117,980 | ||||||||||||
4,440 | Tower Group Inc., (3) | 16,117 | ||||||||||||
1,590 | United Fire Group Inc. | 50,403 | ||||||||||||
2,268 | Universal Insurance Holdings Inc. | 17,781 | ||||||||||||
Total Insurance | 2,856,440 | |||||||||||||
Internet & Catalog Retail – 0.4% | ||||||||||||||
1,993 | 1-800-Flowers, (2) | 10,822 | ||||||||||||
959 | Blue Nile Inc., (2) | 39,386 | ||||||||||||
2,615 | Hosting Site Network, Inc. | 137,026 | ||||||||||||
2,213 | Nutri System Inc. | 41,604 | ||||||||||||
1,855 | Orbitz Worldwide Inc., (2) | 17,140 | ||||||||||||
865 | Overstock.com, Inc., (2) | 20,267 | ||||||||||||
1,554 | PetMed Express, Inc. | 23,061 | ||||||||||||
724 | RetailMeNot Inc., (2) | 23,617 | ||||||||||||
2,936 | Shutterfly, Inc., (2) | 144,275 | ||||||||||||
3,036 | ValueVision Media Inc., (2) | 16,212 | ||||||||||||
1,700 | Vitacost.com, Inc., (2) | 13,447 | ||||||||||||
Total Internet & Catalog Retail | 486,857 | |||||||||||||
Internet Software & Services – 2.7% | ||||||||||||||
4,173 | Active Network Inc., (2) | 60,258 | ||||||||||||
3,265 | Angie’s List, (2), (3) | 46,004 | ||||||||||||
3,575 | Bankrate Inc., (2) | 60,203 | ||||||||||||
3,716 | Bazaarvoice Inc., (2) | 34,856 | ||||||||||||
3,169 | Blucora Inc., (2) | 74,883 | ||||||||||||
2,174 | Brightcove Inc., (2) | 33,197 | ||||||||||||
935 | Carbonite Inc., (2) | 12,379 | ||||||||||||
463 | ChannelAdvisor Corporation, (2) | 16,140 | ||||||||||||
2,760 | ComScore Inc., (2) | 73,747 | ||||||||||||
2,374 | Constant Contact Inc., (2) | 61,510 | ||||||||||||
3,121 | Cornerstone OnDemand Inc., (2) | 147,842 | ||||||||||||
2,198 | CoStar Group, Inc., (2), (3) | 389,024 | ||||||||||||
496 | Cvent Inc., (2) | 15,371 | ||||||||||||
3,362 | DealerTrack Technologies Inc., (2) | 125,403 | ||||||||||||
2,797 | Demand Media Inc., (2) | 13,370 |
86 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Internet Software & Services (continued) | ||||||||||||||
1,244 | Demandware Incorporated, (2) | $ | 61,516 | |||||||||||
3,139 | Dice Holdings Inc., (2) | 23,166 | ||||||||||||
2,726 | Digital River, Inc., (2) | 48,632 | ||||||||||||
1,140 | E2open Inc., (2), (3) | 25,650 | ||||||||||||
7,967 | Earthlink, Inc. | 40,313 | ||||||||||||
1,011 | Egain Communications Corporation, (2) | 11,606 | ||||||||||||
1,746 | Envestnet Inc., (2), (3) | 63,380 | ||||||||||||
1,546 | Global Eagle Acquisition Corporation, (2), (3) | 15,738 | ||||||||||||
849 | Gogo Inc., (2), (3) | 15,825 | ||||||||||||
4,143 | Internap Network Services Corporation, (2) | 30,120 | ||||||||||||
2,969 | Intralinks Holdings INc., (2) | 30,848 | ||||||||||||
3,551 | J2 Global Inc., (3) | 195,234 | ||||||||||||
4,190 | Limelight Networks Inc., (2) | 8,045 | ||||||||||||
1,922 | Liquidity Services, Inc., (2) | 50,183 | ||||||||||||
4,258 | Liveperson, Inc., (2) | 39,770 | ||||||||||||
1,880 | LogMeIn Inc., (2) | 60,724 | ||||||||||||
1,754 | Marchex, Inc. | 15,646 | ||||||||||||
709 | Marin Software Inc., (2) | 8,217 | ||||||||||||
538 | Marketo Inc., (2) | 18,163 | ||||||||||||
2,728 | Millennial Media Incorporated, (2), (3) | 19,178 | ||||||||||||
9,008 | Monster Worldwide Inc., (2), (3) | 38,915 | ||||||||||||
3,083 | Move, Inc., (2), (3) | 52,319 | ||||||||||||
161 | Net Element International Inc., (2), (3) | 762 | ||||||||||||
5,014 | NIC, Incorporated | 123,445 | ||||||||||||
7,152 | no description | 61,793 | ||||||||||||
1,762 | Open Solutions Inc., (2) | 122,424 | ||||||||||||
2,590 | Perficient, Inc., (2) | 46,853 | ||||||||||||
2,424 | QuinStreet, Inc., (2) | 21,549 | ||||||||||||
1,736 | RealNetworks Inc., (2) | 13,315 | ||||||||||||
600 | Reis, Inc., (2) | 10,794 | ||||||||||||
2,845 | Responsys Inc., (2), (3) | 46,487 | ||||||||||||
1,761 | SciQuest Inc., (2) | 38,460 | ||||||||||||
573 | Shutterstock Incorporated, (2), (3) | 40,568 | ||||||||||||
1,359 | Spark Networks, Incorporated, (2), (3) | 9,730 | ||||||||||||
1,161 | SPS Commerce Inc., (2) | 79,122 | ||||||||||||
1,010 | Stamps.com Inc., (2) | 45,894 | ||||||||||||
3,886 | Support.com, Inc., (2) | 17,332 | ||||||||||||
857 | TechTarget Inc., (2), (3) | 4,302 | ||||||||||||
404 | Textura Corporation, (2), (3) | 15,485 |
Nuveen Investments | 87 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Internet Software & Services (continued) | ||||||||||||||
614 | Travelzoo Inc., (2) | $ | 13,219 | |||||||||||
2,139 | Trulia Inc., (2) | 85,496 | ||||||||||||
7,618 | Unwired Planet Inc,, (2) | 12,341 | ||||||||||||
5,892 | ValueClick, Inc., (2), (3) | 113,185 | ||||||||||||
2,524 | VistaPrint NV, (2), (3) | 136,422 | ||||||||||||
1,453 | Vocus, Inc., (2) | 12,568 | ||||||||||||
3,241 | Web.com, Inc., (2), (3) | 87,345 | ||||||||||||
2,478 | WebMD Health Corporation, Class A, (2) | 87,275 | ||||||||||||
2,070 | XO Group, Incorporated, (2) | 28,732 | ||||||||||||
565 | Xoom Corporation, (2) | 16,809 | ||||||||||||
2,301 | Yelp Incorporated, (2) | 155,893 | ||||||||||||
1,799 | Zilow Inc, (2), (3) | 143,254 | ||||||||||||
4,784 | Zix Corporation, (2) | 19,519 | ||||||||||||
Total Internet Software & Services | 3,647,748 | |||||||||||||
IT Services – 2.0% | ||||||||||||||
5,714 | Acxiom Corporation, (2) | 189,876 | ||||||||||||
888 | Blackhawk Network Holdings Inc., (2), (3) | 20,300 | ||||||||||||
1,784 | CACI International Inc., (2), (3) | 128,412 | ||||||||||||
3,468 | Cardtronics Inc., (2) | 136,119 | ||||||||||||
796 | Cass Information Systems, Inc., (3) | 45,635 | ||||||||||||
5,766 | Ciber, Inc., (2) | 18,740 | ||||||||||||
1,197 | Computer Task Group, Inc. | 20,505 | ||||||||||||
8,121 | Convergys Corporation | 160,309 | ||||||||||||
2,619 | CSG Systems International Inc. | 72,965 | ||||||||||||
1,690 | EPAM Systems Inc., (2) | 63,324 | ||||||||||||
3,853 | Euronet Worldwide, Inc., (2), (3) | 167,220 | ||||||||||||
2,280 | Evertec Inc. | 53,489 | ||||||||||||
2,523 | Exlservice Holdings, Inc., (2) | 72,940 | ||||||||||||
904 | Forrester Research, Inc. | 35,084 | ||||||||||||
5,119 | Global Cash Access Holdings, Inc., (2) | 42,488 | ||||||||||||
2,007 | Hackett Group, Inc. | 14,290 | ||||||||||||
2,809 | Heartland Payment Systems Inc., (3) | 113,624 | ||||||||||||
2,425 | Higher One Holdings Incn, (2) | 19,279 | ||||||||||||
2,692 | IGATE Corporation, (2) | 85,713 | ||||||||||||
4,501 | Lionbridge Technologies, Inc., (2) | 19,624 | ||||||||||||
362 | Luxoft Holding Inc., (2) | 10,578 | ||||||||||||
1,843 | ManTech International Corporation, Class A | 51,493 | ||||||||||||
5,280 | Maximus Inc. | 255,816 | ||||||||||||
2,859 | ModusLink Global Solutions Inc., (2) | 11,779 |
88 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
IT Services (continued) | ||||||||||||||
1,656 | Moneygram International Inc., (2) | $ | 34,958 | |||||||||||
3,286 | Planet Payment Inc., (2) | 8,938 | ||||||||||||
2,229 | PRG-Schultz International Inc., (2) | 16,004 | ||||||||||||
8,530 | Sapient Corporation, (2) | 134,859 | ||||||||||||
4,722 | ServiceSource International Inc., (2) | 51,092 | ||||||||||||
3,035 | Sykes Enterprises Inc., (2) | 56,815 | ||||||||||||
1,193 | Syntel Inc. | 102,407 | ||||||||||||
1,539 | TeleTech Holdings, Inc., (2) | 40,737 | ||||||||||||
3,412 | Unisys Corporation, (2) | 89,906 | ||||||||||||
1,581 | Virtusa Corporation, (2) | 49,137 | ||||||||||||
3,000 | WEX Inc., (2) | 280,050 | ||||||||||||
Total IT Services | 2,674,505 | |||||||||||||
Leisure Equipment & Products – 0.5% | ||||||||||||||
1,019 | Arctic Cat, Inc. | 53,396 | ||||||||||||
1,752 | Black Diamond Group Inc., (2), (3) | 26,122 | ||||||||||||
6,993 | Brunswick Corporation, (3) | 315,594 | ||||||||||||
5,495 | Callaway Golf Company, (3) | 46,323 | ||||||||||||
1,485 | JAKKS Pacific Inc., (3) | 9,563 | ||||||||||||
383 | Johnson Outdoors, Inc. | 10,506 | ||||||||||||
4,927 | LeapFrog Enterprises Inc., (2), (3) | 42,175 | ||||||||||||
813 | Marine Products Corporation | 7,618 | ||||||||||||
2,399 | Nautilus Group, Inc., (2) | 19,096 | ||||||||||||
4,299 | Smith & Wesson Holding Corporation, (2), (3) | 46,343 | ||||||||||||
1,493 | Sturm, Ruger, & Company, (3) | 97,657 | ||||||||||||
Total Leisure Equipment & Products | 674,393 | |||||||||||||
Life Sciences Tools & Services – 0.4% | ||||||||||||||
803 | Accelerate Diagnostics Inc., (2), (3) | 10,294 | ||||||||||||
5,496 | Affymetrix, Inc., (2), (3) | 38,857 | ||||||||||||
1,799 | Albany Molecular Research Inc., (2) | 23,567 | ||||||||||||
2,322 | Cambrex Corporation, (2) | 39,056 | ||||||||||||
1,966 | Fluidigm Corporation, (2) | 61,929 | ||||||||||||
514 | Furiex Pharmaceuticals Inc., (2) | 20,097 | ||||||||||||
1,972 | Harvard Bioscience, Inc., (2) | 11,615 | ||||||||||||
2,888 | Luminex Corporation, (2) | 56,316 | ||||||||||||
2,543 | NeoGenomics Inc., (2) | 9,257 | ||||||||||||
3,691 | Pacific Biosciences of California Inc., (2) | 15,170 | ||||||||||||
4,394 | Parexel International Corporation, (2), (3) | 200,850 | ||||||||||||
8,902 | Sequenom, Inc., (2), (3) | 17,092 | ||||||||||||
Total Life Sciences Tools & Services | 504,100 |
Nuveen Investments | 89 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Machinery – 3.0% | ||||||||||||||
3,099 | Accuride Corporation, (2) | $ | 13,946 | |||||||||||
5,658 | Actuant Corporation | 212,514 | ||||||||||||
547 | Alamo Group Inc. | 25,813 | ||||||||||||
2,162 | Albany International Corporation, Class A | 79,583 | ||||||||||||
2,088 | Altra Industrial Motion, Inc. | 63,413 | ||||||||||||
731 | American Railcar Industries, (3) | 29,942 | ||||||||||||
654 | Ampco-Pittsburgh Corporation | 12,040 | ||||||||||||
1,575 | Astec Industries Inc. | 53,251 | ||||||||||||
4,155 | Barnes Group Inc. | 147,669 | ||||||||||||
3,805 | Blount International Inc., (2) | 46,345 | ||||||||||||
3,724 | Briggs & Stratton Corporation, (3) | 68,298 | ||||||||||||
2,343 | Chart Industries, Inc., (2), (3) | 251,802 | ||||||||||||
1,358 | CIRCOR International Inc. | 100,180 | ||||||||||||
3,841 | CLARCOR, Inc. | 224,622 | ||||||||||||
1,508 | Columbus McKinnon Corporation NY, (2) | 39,223 | ||||||||||||
1,850 | Commercial Vehicle Group Inc., (2) | 14,560 | ||||||||||||
1,719 | Douglas Dynamics Inc. | 26,077 | ||||||||||||
1,058 | Dynamic Material Corporation | 23,382 | ||||||||||||
3,416 | Energy Recovery, Inc., (2) | 19,949 | ||||||||||||
1,615 | EnPro Industries Inc., (2), (3) | 96,367 | ||||||||||||
2,044 | ESCO Technologies Inc., (3) | 73,748 | ||||||||||||
471 | ExOne Company, (2), (3) | 24,176 | ||||||||||||
4,827 | Federal Signal Corporation, (2) | 66,082 | ||||||||||||
3,744 | Flow International Corporation, (2), (3) | 14,939 | ||||||||||||
930 | Freightcar America Inc., (3) | 20,683 | ||||||||||||
622 | Global Brass & Copper Holdings Inc., (2) | 11,650 | ||||||||||||
1,166 | Gorman-Rupp Company, (3) | 47,503 | ||||||||||||
774 | Graham Corporation | 28,491 | ||||||||||||
1,889 | Greenbrier Companies Inc., (2), (3) | 50,134 | ||||||||||||
909 | Hardinge, Inc. | 13,444 | ||||||||||||
499 | Hurco Companies, Inc., (3) | 12,221 | ||||||||||||
813 | Hyster-Yale Materials Handling Inc. | 63,772 | ||||||||||||
2,237 | John Bean Technologies Corporation | 60,802 | ||||||||||||
866 | Kadant Inc. | 31,003 | ||||||||||||
786 | LB Foster Company | 36,746 | ||||||||||||
994 | Lindsay Manufacturing Company, (3) | 75,554 | ||||||||||||
1,318 | Lydall Inc., (2) | 24,014 | ||||||||||||
951 | Manitex International, Inc., (2) | 12,296 | ||||||||||||
7,533 | Meritor Inc., (2) | 51,752 |
90 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Machinery (continued) | ||||||||||||||
1,453 | Middleby Corporation, (2) | $ | 330,775 | |||||||||||
868 | Midwest Air Group Inc. | 16,266 | ||||||||||||
2,173 | Mueller Industries Inc. | 131,010 | ||||||||||||
12,205 | Mueller Water Products Inc. | 104,597 | ||||||||||||
1,322 | NN, Incorporated | 21,258 | ||||||||||||
213 | OmegaFlex, Inc. | 4,332 | ||||||||||||
1,617 | Peerless Manufacturing Company, (2) | 12,677 | ||||||||||||
1,320 | Proto Labs Incorporated, (2) | 110,695 | ||||||||||||
1,643 | RBC Bearings Inc., (2) | 113,022 | ||||||||||||
2,342 | Rexnord Corporation, (2) | 55,084 | ||||||||||||
981 | Standex International Corporation | 60,341 | ||||||||||||
1,659 | Sun Hydraulics Corporation | 65,829 | ||||||||||||
1,428 | Tecumseh Products Company, Class A, (2) | 11,138 | ||||||||||||
1,422 | Tennant Company, (3) | 86,301 | ||||||||||||
4,137 | Titan International Inc., (3) | 59,987 | ||||||||||||
3,069 | TriMas Corporation, (2) | 116,192 | ||||||||||||
643 | Twin Disc, Inc. | 16,634 | ||||||||||||
5,293 | Wabash National Corporation, (2), (3) | 61,716 | ||||||||||||
2,205 | Watts Water Technologies, Inc., (3) | 127,405 | ||||||||||||
5,315 | Woodward Governor Company | 213,078 | ||||||||||||
844 | Xerium Technologies, (2) | 10,120 | ||||||||||||
Total Machinery | 3,996,443 | |||||||||||||
Marine – 0.1% | ||||||||||||||
432 | International Shipholding Corp. | 10,722 | ||||||||||||
3,300 | Matson Incorporated | 89,397 | ||||||||||||
1,652 | Ultrapetrol Limited, (2) | 5,947 | ||||||||||||
Total Marine | 106,066 | |||||||||||||
Media – 1.3% | ||||||||||||||
1,461 | A.H. Belo Corporation, Class A Shares | 11,746 | ||||||||||||
327 | Beasley Broadcast Group, Inc. | 2,835 | ||||||||||||
8,022 | Belo Corp. | 110,142 | ||||||||||||
1,778 | Carmike Cinemas, Inc., (2) | 40,698 | ||||||||||||
5,918 | Central European Media Enterprises Limited, (2) | 18,168 | ||||||||||||
2,679 | Crown Media Holdings, Inc., (2), (3) | 8,894 | ||||||||||||
5,820 | Cumulus Media, Inc., (2) | 34,804 | ||||||||||||
73 | Daily Journal Corporation, (2) | 10,800 | ||||||||||||
1,325 | Dex Media Inc., (2), (3) | 8,944 | ||||||||||||
1,870 | Digital Generation Inc., (2), (3) | 23,656 | ||||||||||||
2,417 | E.W. Scripps Company, Class A, (2) | 47,905 |
Nuveen Investments | 91 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Media (continued) | ||||||||||||||
1,849 | Entercom Communications Corporation, (2) | $ | 16,216 | |||||||||||
4,263 | Entravision Communications Corporation | 28,733 | ||||||||||||
1,463 | Global Sources, Limited, (2) | 10,958 | ||||||||||||
3,888 | Gray Television Inc., (2), (3) | 32,854 | ||||||||||||
3,322 | Harte-Hanks Inc. | 26,476 | ||||||||||||
665 | Hemisphere Media Group Inc., (2) | 6,291 | ||||||||||||
3,410 | Journal Communications Inc., (2) | 28,474 | ||||||||||||
10,880 | Live Nation Inc., (2) | 211,507 | ||||||||||||
938 | Loral Space & Communications, Inc. | 66,945 | ||||||||||||
2,246 | Martha Stewart Living Omnimedia Inc., (2) | 5,750 | ||||||||||||
4,699 | McClatchy Company, (2), (3) | 13,251 | ||||||||||||
1,950 | MDC Partners, Inc. | 60,119 | ||||||||||||
1,516 | Media General Inc., (2), (3) | 22,103 | ||||||||||||
2,762 | Meredith Corporation | 141,691 | ||||||||||||
4,398 | National CineMedia, Inc. | 77,053 | ||||||||||||
9,973 | New York Times, Class A, (3) | 137,927 | ||||||||||||
2,270 | Nexstar Broadcasting Group, Inc. | 100,765 | ||||||||||||
804 | ReachLocal Inc., (2) | 9,881 | ||||||||||||
1,348 | Reading International Inc., A, (2) | 8,924 | ||||||||||||
807 | Rentrak Corporation, (2) | 30,254 | ||||||||||||
373 | Saga Comunications Inc Class A Shares | 17,759 | ||||||||||||
803 | Salem Communications Corporation | 6,633 | ||||||||||||
2,043 | Scholastic Corporation | 58,614 | ||||||||||||
5,289 | Sinclair Broadcast Group, Series A | 169,565 | ||||||||||||
3,001 | Vallassis Communications Inc., (3) | 82,107 | ||||||||||||
2,009 | World Wrestling Entertainment Inc. | 26,017 | ||||||||||||
Total Media | 1,715,459 | |||||||||||||
Metals & Mining – 1.3% | ||||||||||||||
10,537 | AK Steel Holding Corporation, (2), (3) | 46,363 | ||||||||||||
8,031 | Allied Nevada Gold Corporation, (2), (3) | 32,766 | ||||||||||||
1,354 | AM Castle & Company, (2), (3) | 19,376 | ||||||||||||
2,153 | AMCOL International Corp. | 69,068 | ||||||||||||
3,975 | Century Aluminum Company, (2) | 34,503 | ||||||||||||
7,845 | Coeur d’Alene Mines Corporation, (2) | 95,787 | ||||||||||||
9,036 | Commercial Metals Company | 165,901 | ||||||||||||
4,966 | General Moly, Inc., (2) | 8,144 | ||||||||||||
4,984 | Globe Specialty Metals Inc. | 87,419 | ||||||||||||
2,564 | Gold Resource Corp. | 13,307 | ||||||||||||
422 | Handy & Harman Limited, (2) | 9,744 |
92 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Metals & Mining (continued) | ||||||||||||||
953 | Haynes International Inc. | $ | 51,367 | |||||||||||
25,729 | Hecla Mining Company, (3) | 80,274 | ||||||||||||
3,410 | Horsehead Holding Corp., (2), (3) | 49,479 | ||||||||||||
1,462 | Kaiser Aluminum Corporation | 98,612 | ||||||||||||
1,588 | Materion Corporation | 47,338 | ||||||||||||
9,468 | Midway Gold Corporation, (2), (3) | 8,900 | ||||||||||||
11,464 | Molycorp Inc., (2), (3) | 58,122 | ||||||||||||
2,607 | Noranda Aluminum Hodlings Corporation | 7,091 | ||||||||||||
700 | Olympic Steel Inc. | 19,159 | ||||||||||||
10,659 | Paramount Gold and Silver Corporation, (2), (3) | 12,897 | ||||||||||||
2,422 | RTI International Metals, Inc., (2) | 82,106 | ||||||||||||
1,989 | Schnitzer Steel Industries, Inc., (3) | 57,761 | ||||||||||||
9,129 | Stillwater Mining Company, (2), (3) | 99,597 | ||||||||||||
5,410 | SunCoke Energy Inc., (2) | 108,200 | ||||||||||||
535 | Universal Stainless & Alloy Products, Inc., (2), (3) | 17,291 | ||||||||||||
1,658 | US Silica Holdings Inc., (3) | 57,732 | ||||||||||||
4,837 | Walter Industries Inc., (3) | 76,860 | ||||||||||||
4,087 | Worthington Industries, Inc. | 165,687 | ||||||||||||
Total Metals & Mining | 1,680,851 | |||||||||||||
Multiline Retail – 0.2% | ||||||||||||||
1,045 | Bon-Ton Stores, Inc., (3) | 11,965 | ||||||||||||
2,838 | Freds Inc., (3) | 45,976 | ||||||||||||
687 | Gordmans Stores Inc. | 6,801 | ||||||||||||
8,070 | Saks Inc., (2), (3) | 129,039 | ||||||||||||
3,311 | Tuesday Morning Corporation, (2) | 46,851 | ||||||||||||
Total Multiline Retail | 240,632 | |||||||||||||
Multi-Utilities – 0.3% | ||||||||||||||
4,632 | Avista Corporation | 128,723 | ||||||||||||
3,436 | Black Hills Corporation | 174,274 | ||||||||||||
2,928 | Northwestern Corporation | 134,220 | ||||||||||||
Total Multi-Utilities | 437,217 | |||||||||||||
Oil, Gas & Consumable Fuels – 3.7% | ||||||||||||||
6,350 | Abraxas Petroleum Corporation, (2) | 18,352 | ||||||||||||
163 | Adams Resources and Energy, Incorporated | 8,439 | ||||||||||||
1,800 | Alon USA Energy, Inc., (3) | 21,744 | ||||||||||||
17,069 | Alpha Natural Resources Inc., (2), (3) | 119,483 | ||||||||||||
2,027 | Amyris Inc., (2), (3) | 5,108 | ||||||||||||
707 | Apco Oil and Gas International Inc., (2) | 10,761 | ||||||||||||
2,696 | Approach Resources Inc., (2) | 75,892 |
Nuveen Investments | 93 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||
16,408 | Arch Coal Inc., (3) | $ | 69,570 | |||||||||||
1,400 | Athlon Energy Inc., (2) | 46,060 | ||||||||||||
4,072 | Berry Petroleum Company | 194,438 | ||||||||||||
3,769 | Bill Barrett Corporation, (2), (3) | 104,288 | ||||||||||||
2,276 | Bonanza Creek Energy Inc., (2) | 115,029 | ||||||||||||
9,107 | BPZ Resources, Inc., (2) | 18,305 | ||||||||||||
3,081 | Callon Petroleum Company Del, (2) | 21,043 | ||||||||||||
3,121 | Carrizo Oil & Gas, Inc., (2), (3) | 136,825 | ||||||||||||
455 | Clayton Williams Energy, (2) | 35,413 | ||||||||||||
5,266 | Clean Energy Fuels Corporation, (2), (3) | 59,980 | ||||||||||||
4,703 | Cloud Peak Energy Inc., (2) | 73,414 | ||||||||||||
3,734 | Comstock Resources Inc. | 63,889 | ||||||||||||
1,145 | Contango Oil & Gas Company | 49,063 | ||||||||||||
3,680 | Crosstex Energy, Inc. | 112,939 | ||||||||||||
2,871 | Delek US Holdings Inc. | 73,354 | ||||||||||||
1,378 | Diamondback Energy, (2) | 71,174 | ||||||||||||
4,364 | Emerald Oil Inc., (2) | 37,967 | ||||||||||||
3,641 | Endeavor International Corporation, (2), (3) | 21,628 | ||||||||||||
6,136 | Energy XXI Limited Bermuda | 178,312 | ||||||||||||
2,311 | EPL Oil & Gas Inc., (2) | 73,675 | ||||||||||||
2,753 | Equal Energy Limited, (3) | 13,049 | ||||||||||||
1,310 | Evolution Petroleum Corporation, (2) | 15,799 | ||||||||||||
10,492 | Exco Resources Inc., (3) | 56,762 | ||||||||||||
9,222 | Forest Oil Corporation, (2), (3) | 43,712 | ||||||||||||
3,982 | Frontline Limited, (2), (3) | 8,442 | ||||||||||||
4,129 | FX Energy, Inc., (2), (3) | 14,369 | ||||||||||||
1,973 | GasLog Limited | 29,358 | ||||||||||||
4,290 | Gastar Exploration, Limited, (2) | 18,533 | ||||||||||||
2,414 | Goodrich Petroleum Corporation, (2), (3) | 56,463 | ||||||||||||
1,955 | Green Plains Renewable Energy, Inc. | 31,534 | ||||||||||||
17,875 | Halcon Resources Corporation, (2), (3) | 92,593 | ||||||||||||
672 | Hallador Energy Company | 5,174 | ||||||||||||
77 | Isramco, Inc., (2) | 10,162 | ||||||||||||
858 | Jones Energy Inc, Class A, (2) | 13,737 | ||||||||||||
3,393 | Kior Inc., Class A Shares, (2), (3) | 7,906 | ||||||||||||
2,348 | Knightsbridge Tankers Limited | 19,348 | ||||||||||||
20,519 | Kodiak Oil & Gas Corporation, (2), (3) | 266,131 | ||||||||||||
2,324 | L&L Energy Inc., (2), (3) | 3,300 | ||||||||||||
13,288 | Magnum Hunter Resources Corporation, (2), (3) | 94,743 |
94 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||
4,483 | Matador Resources Company, (2) | $ | 82,532 | |||||||||||
2,566 | Midstates Petroleum Company Incorporated, (2), (3) | 14,472 | ||||||||||||
2,359 | Miller Energy Resources Inc., (2), (3) | 15,947 | ||||||||||||
5,104 | Nordic American Tanker Shipping Ltd, (3) | 41,649 | ||||||||||||
4,931 | Northern Oil and Gas Inc., (2) | 81,016 | ||||||||||||
1,193 | Panhandle Oil and Gas Inc. | 40,049 | ||||||||||||
2,747 | PDC Energy Inc., (2) | 186,274 | ||||||||||||
4,268 | Penn Virginia Corporation, (2), (3) | 36,321 | ||||||||||||
4,409 | Petroquest Energy Inc., (2) | 20,810 | ||||||||||||
9,632 | Quicksilver Resources Inc., (2) | 20,612 | ||||||||||||
1,636 | Renewable Energy Group Inc., (2) | 17,849 | ||||||||||||
17,462 | Rentech, Inc. | 29,860 | ||||||||||||
5,234 | Resolute Energy Corporation, (2) | 49,095 | ||||||||||||
3,495 | Rex Energy Inc., (2) | 75,143 | ||||||||||||
422 | Rex Stores Corporation, (2) | 12,170 | ||||||||||||
4,723 | Rosetta Resources, Inc., (2), (3) | 283,097 | ||||||||||||
2,933 | Sanchez Energy Corporation, (2), (3) | 83,620 | ||||||||||||
14,250 | Scorpio Tankers Inc. | 164,445 | ||||||||||||
3,250 | SemGroup Corporation, A Shares | 196,268 | ||||||||||||
4,326 | Ship Financial International Limited, (3) | 71,595 | ||||||||||||
3,696 | Solazyme Inc., (2), (3) | 38,660 | ||||||||||||
3,856 | Stone Energy Corporation, (2) | 134,420 | ||||||||||||
3,351 | Swift Energy Company, (2), (3) | 45,976 | ||||||||||||
3,922 | Synergy Resources Corporation, (2) | 40,632 | ||||||||||||
2,544 | Targa Resources Corporation | 197,313 | ||||||||||||
4,811 | Teekay Tankers Limited, Class A Shares, (3) | 12,557 | ||||||||||||
5,240 | Triangle Petroleum Corporation, (2) | 55,387 | ||||||||||||
6,610 | Uranium Energy Corporation, (2) | 11,634 | ||||||||||||
9,383 | Ur-Energy Inc., (2) | 9,852 | ||||||||||||
4,476 | Vaalco Energy Inc., (2) | 23,589 | ||||||||||||
2,688 | W&T Offshore Inc. | 51,314 | ||||||||||||
5,633 | Warren Resources Inc., (2) | 17,631 | ||||||||||||
4,186 | Western Refining Inc., (3) | 135,082 | ||||||||||||
909 | Westmoreland Coal Company, (2) | 12,917 | ||||||||||||
2,865 | ZaZa Energy Corporation, (2), (3) | 3,553 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 4,930,601 | |||||||||||||
Paper & Forest Products – 0.7% | ||||||||||||||
1,045 | Boise Cascade Company, (2) | 26,762 | ||||||||||||
1,717 | Clearwater Paper Corporation, (2) | 89,662 |
Nuveen Investments | 95 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Paper & Forest Products (continued) | ||||||||||||||
860 | Deltic Timber Corporation, (3) | $ | 54,937 | |||||||||||
3,318 | Glatfelter | 86,932 | ||||||||||||
3,157 | KapStone Paper and Packaging Corp. | 164,038 | ||||||||||||
10,774 | Louisiana-Pacific Corporation, (2) | 183,266 | ||||||||||||
1,236 | Neenah Paper, Inc. | 50,849 | ||||||||||||
5,396 | Resolute Forest Products, (2), (3) | 86,282 | ||||||||||||
2,425 | Schweitzer-Mauduit International Inc. | 150,059 | ||||||||||||
3,819 | Wausau Paper Corp. | 44,682 | ||||||||||||
Total Paper & Forest Products | 937,469 | |||||||||||||
Personal Products – 0.3% | ||||||||||||||
1,981 | Elizabeth Arden, Inc., (2) | 71,692 | ||||||||||||
1,680 | Female Health Company | 15,994 | ||||||||||||
1,269 | Inter Parfums, Inc. | 44,618 | ||||||||||||
8,775 | Lifevantage Corporation, (2) | 19,217 | ||||||||||||
1,067 | Medifast, Inc., (2) | 24,872 | ||||||||||||
838 | Nature’s Sunshine Products | 15,830 | ||||||||||||
661 | Nutraceutical International Corporation | 15,897 | ||||||||||||
3,954 | Prestige Brands Holdings Inc., (2) | 123,483 | ||||||||||||
876 | Revlon Inc., (2) | 20,805 | ||||||||||||
12,871 | Star Scientific, Inc., (2), (3) | 23,297 | ||||||||||||
1,338 | Synutra International Inc., (2) | 9,139 | ||||||||||||
463 | USANA Health Sciences, Inc., (2) | 31,590 | ||||||||||||
Total Personal Products | 416,434 | |||||||||||||
Pharmaceuticals – 1.3% | ||||||||||||||
1,805 | AcelRx Pharmaceuticals Inc., (2) | 12,130 | ||||||||||||
4,500 | Akorn, Inc., (2), (3) | 91,980 | ||||||||||||
1,311 | Alimera Sciences, Inc., (2) | 2,806 | ||||||||||||
2,137 | Ampio Pharmaceuticals Inc., (2) | 18,891 | ||||||||||||
509 | Aratana Therpaeutics Inc., (2) | 10,160 | ||||||||||||
3,812 | Auxilium Pharmaceuticals, Inc., (2), (3) | 65,605 | ||||||||||||
11,218 | Avanir Pharmaceuticals, (2) | 45,433 | ||||||||||||
2,313 | Biodelivery Sciences, Inc., (2), (3) | 12,143 | ||||||||||||
4,769 | Cadence Pharmaceuticals, Inc., (2) | 23,511 | ||||||||||||
1,147 | Cempra Inc., (2) | 13,030 | ||||||||||||
4,115 | Corcept Therapeutics, Inc., (2) | 6,954 | ||||||||||||
686 | Cornerstone Therapeutics Inc., (2) | 6,496 | ||||||||||||
4,367 | DepoMed, Inc., (2) | 31,442 | ||||||||||||
2,356 | Endocyte Inc., (2), (3) | 24,573 | ||||||||||||
859 | Hi Tech Pharmacal Company, Inc. | 37,014 |
96 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Pharmaceuticals (continued) | ||||||||||||||
3,984 | Horizon Pharma Inc., (2), (3) | $ | 16,693 | |||||||||||
5,293 | Impax Laboratories Inc., (2) | 107,236 | ||||||||||||
1,262 | Lannett Company Inc., (2) | 29,796 | ||||||||||||
4,637 | Medicines Company, (2) | 157,287 | ||||||||||||
8,928 | Nektar Therapautics, (2) | 84,905 | ||||||||||||
2,305 | Omeros Corporation, (2), (3) | 23,050 | ||||||||||||
2,130 | Pacira Pharmaceuticals, Inc., (2), (3) | 107,586 | ||||||||||||
1,354 | Pernix Therapeutics Holdings, Incorporated, (2) | 2,830 | ||||||||||||
2,086 | Pozen Inc., (2) | 13,111 | ||||||||||||
4,010 | Questcor Pharmaceuticals Inc., (3) | 246,094 | ||||||||||||
1,774 | Repros Therapeutics, Inc., (2), (3) | 32,003 | ||||||||||||
1,289 | Sagent Pharmaceuticals Inc., (2) | 27,958 | ||||||||||||
4,285 | Santarus, Inc., (2) | 99,969 | ||||||||||||
4,180 | SciClone Pharmaceuticals, Inc., (2) | 19,771 | ||||||||||||
1,059 | Sucampo Pharmaceuticals, Inc., (2) | 6,566 | ||||||||||||
1,072 | Supernus Pharmaceuticals Incorporated, (2), (3) | 7,579 | ||||||||||||
6,035 | TherapeuticsMD, (2), (3) | 25,468 | ||||||||||||
5,048 | ViroPharma, Inc., (2), (3) | 195,963 | ||||||||||||
7,781 | Vivus, Inc., (2), (3) | 73,064 | ||||||||||||
3,353 | Xenoport, Inc., (2), (3) | 17,536 | ||||||||||||
5,543 | Zogenix Inc., (2), (3) | 16,241 | ||||||||||||
Total Pharmaceuticals | 1,712,874 | |||||||||||||
Professional Services – 1.3% | ||||||||||||||
3,802 | Acacia Research, (3) | 57,372 | ||||||||||||
544 | Barrett Business Services, Inc. | 45,299 | ||||||||||||
2,940 | CBIZ Inc., (2), (3) | 23,990 | ||||||||||||
1,091 | CDI Corporation | 17,511 | ||||||||||||
2,599 | Corporate Executive Board Company | 189,467 | ||||||||||||
786 | CRA International, Inc., (2) | 14,973 | ||||||||||||
1,020 | Exponent, Inc. | 77,122 | ||||||||||||
703 | Franklin Covey Company, (2) | 13,216 | ||||||||||||
3,116 | FTI Consulting Inc., (2) | 126,447 | ||||||||||||
1,134 | GP Strategies Corporation, (2) | 31,775 | ||||||||||||
1,396 | Heidrick & Struggles International, Inc. | 25,854 | ||||||||||||
1,800 | Huron Consulting Group, Inc., (2), (3) | 105,426 | ||||||||||||
1,525 | ICF International, Inc., (2) | 52,796 | ||||||||||||
1,736 | Insperity Inc. | 67,131 | ||||||||||||
2,082 | Kelly Services, Inc. | 43,431 | ||||||||||||
2,092 | KForce Inc. | 41,191 |
Nuveen Investments | 97 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Professional Services (continued) | ||||||||||||||
3,764 | Korn Ferry International, (2) | $ | 89,583 | |||||||||||
1,229 | Mistras Group Inc., (2) | 22,564 | ||||||||||||
529 | National Technical Systems, Inc., (2) | 12,109 | ||||||||||||
3,898 | Navigant Consulting Inc., (2) | 67,630 | ||||||||||||
6,097 | Odyssey Marine Exploration Inc., (2), (3) | 13,230 | ||||||||||||
3,535 | On Assignment, Inc., (2) | 119,448 | ||||||||||||
12,520 | Pendrell Corporation, (2) | 27,920 | ||||||||||||
3,154 | Resources Connection, Inc. | 40,245 | ||||||||||||
2,505 | RPX Corporation, (2) | 44,739 | ||||||||||||
2,745 | The Advisory Board Company, (2), (3) | 188,307 | ||||||||||||
3,145 | TrueBlue Inc., (2) | 77,682 | ||||||||||||
318 | VSE Corporation | 13,928 | ||||||||||||
1,929 | WageWorks, Incorporated, (2), (3) | 98,784 | ||||||||||||
Total Professional Services | 1,749,170 | |||||||||||||
Real Estate Investment Trust – 6.7% | ||||||||||||||
4,257 | Acadia Realty Trust | 113,534 | ||||||||||||
2,159 | AG Mortgage Investment Trust Inc. | 35,278 | ||||||||||||
974 | Agree Realty Corporation | 30,749 | ||||||||||||
163 | Alexander’s Inc., (3) | 52,447 | ||||||||||||
2,598 | American Assets Trust Inc | 86,487 | ||||||||||||
4,558 | American Capital Mortgage Investment Corporation | 87,103 | ||||||||||||
11,906 | American Realty Capital Properties Inc,, (3) | 157,993 | ||||||||||||
1,059 | American Residential Properties Inc., (2), (3) | 18,247 | ||||||||||||
1,517 | AmREIT Inc., Class B Shares | 26,699 | ||||||||||||
11,198 | Anworth Mortgage Asset Corporation, (3) | 54,982 | ||||||||||||
2,851 | Apollo Commercial Real Estate Finance, Inc. | 45,930 | ||||||||||||
2,476 | Apollo Residential Mortgage Inc. | 37,289 | ||||||||||||
1,654 | Ares Commercial Real Estate Corporation | 20,559 | ||||||||||||
1,469 | Armada Hoffler Properties Inc., (3) | 14,132 | ||||||||||||
28,921 | Armour Residential REIT Inc. | 119,155 | ||||||||||||
4,751 | Ashford Hospitality Trust Inc. | 62,048 | ||||||||||||
4,447 | Associated Estates Realty Corp., (3) | 68,217 | ||||||||||||
888 | Aviv REIT Inc. | 22,555 | ||||||||||||
4,991 | Campus Crest Communities Inc. | 49,960 | ||||||||||||
6,869 | CapLease Inc. | 58,387 | ||||||||||||
7,388 | Capstead Mortgage Corporation, (3) | 87,400 | ||||||||||||
5,590 | Cedar Shopping Centers Inc. | 31,919 | ||||||||||||
19,244 | Chambers Street Properties, (3) | 179,547 | ||||||||||||
1,741 | Chatham Lodging Trust | 32,835 |
98 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||
3,755 | Chesapeake Lodging Trust | $ | 88,505 | |||||||||||
4,994 | Colony Financial Inc. | 101,029 | ||||||||||||
1,604 | Coresite Realty Corporation | 52,034 | ||||||||||||
9,339 | Cousins Properties, Inc. | 105,811 | ||||||||||||
10,299 | CubeSmart | 188,163 | ||||||||||||
1,482 | CyrusOne Inc. | 28,884 | ||||||||||||
13,498 | CYS Investments Inc. | 114,598 | ||||||||||||
22,473 | DCT Industrial Trust Inc. | 174,166 | ||||||||||||
15,109 | DiamondRock Hospitality Company | 172,092 | ||||||||||||
4,825 | Dupont Fabros Technology Inc., (3) | 119,901 | ||||||||||||
4,247 | Dynex Capital, Inc., (3) | 36,694 | ||||||||||||
2,339 | EastGroup Properties Inc., (3) | 148,901 | ||||||||||||
8,815 | Education Realty Trust Inc. | 80,569 | ||||||||||||
498 | Ellington Residential Mortgage REIT | 7,779 | ||||||||||||
3,636 | Entertainment Properties Trust | 186,781 | ||||||||||||
4,654 | Equity One Inc. | 112,208 | ||||||||||||
3,698 | Excel Trust Inc. | 44,672 | ||||||||||||
9,595 | FelCor Lodging Trust Inc., (2) | 64,478 | ||||||||||||
8,309 | First Industrial Realty Trust, Inc. | 150,144 | ||||||||||||
4,542 | First Potomac Realty Trust | 55,821 | ||||||||||||
6,959 | Franklin Street Properties Corporation, (3) | 91,859 | ||||||||||||
5,534 | Geo Group Inc. | 195,184 | ||||||||||||
1,980 | Getty Realty Corporation | 37,976 | ||||||||||||
1,084 | Gladstone Commercial Corporation, (3) | 20,488 | ||||||||||||
11,170 | Glimcher Realty Trust | 114,493 | ||||||||||||
4,226 | Government Properties Income Trust | 103,326 | ||||||||||||
4,590 | Gramercy Proprty Trust Inc, (2) | 20,976 | ||||||||||||
7,410 | Healthcare Realty Trust, Inc. | 177,914 | ||||||||||||
15,659 | Hersha Hospitality Trust | 88,787 | ||||||||||||
6,349 | Highwoods Properties, Inc. | 245,071 | ||||||||||||
3,350 | Hudson Pacific Properties Inc. | 69,312 | ||||||||||||
6,595 | Inland Real Estate Corporation | 70,501 | ||||||||||||
10,453 | Invesco Mortgage Capital Inc. | 161,499 | ||||||||||||
7,797 | Investors Real Estate Trust | 67,210 | ||||||||||||
6,575 | iStar Financial Inc., (2) | 83,042 | ||||||||||||
1,043 | Javelin Mortgage Investment Corporation, (3) | 12,380 | ||||||||||||
7,072 | Kite Realty Group Trust, (3) | 45,261 | ||||||||||||
8,008 | LaSalle Hotel Properties | 248,648 | ||||||||||||
13,045 | Lexington Corporate Properties Trust | 152,627 |
Nuveen Investments | 99 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||
2,685 | LTC Properties Inc. | $ | 105,923 | |||||||||||
12,470 | Medical Properties Trust Inc. | 162,609 | ||||||||||||
3,281 | Monmouth Real Estate Investment Corporation | 30,251 | ||||||||||||
1,901 | National Health Investors Inc., (3) | 118,851 | ||||||||||||
19,559 | New Residential Investment | 129,285 | ||||||||||||
4,927 | New York Mortgage Trust, Inc., (3) | 31,631 | ||||||||||||
18,499 | Northstar Realty Finance Corporation | 172,596 | ||||||||||||
908 | One Liberty Properties Inc. | 19,195 | ||||||||||||
3,367 | Parkway Properties Inc., (3) | 60,976 | ||||||||||||
4,748 | Pebblebrook Hotel Trust | 143,390 | ||||||||||||
5,257 | Penn Real Estate Investment Trust | 95,309 | ||||||||||||
5,438 | PennyMac Mortgage Investment Trust | 125,455 | ||||||||||||
906 | Physicians Realty Trust | 11,379 | ||||||||||||
3,130 | Potlatch Corporation | 127,798 | ||||||||||||
1,411 | PS Business Parks Inc. | 114,982 | ||||||||||||
5,408 | RAIT Investment Trust | 40,830 | ||||||||||||
4,613 | Ramco-Gershenson Properties Trust, (3) | 75,007 | ||||||||||||
6,348 | Redwood Trust Inc., (3) | 111,217 | ||||||||||||
9,816 | Resource Capital Corporation, (3) | 60,368 | ||||||||||||
4,786 | Retail Opportunity Investments Corporation | 70,833 | ||||||||||||
1,304 | Rexford Industrial Realty Inc., (2) | 17,760 | ||||||||||||
9,561 | RLJ Lodging Trust | 241,511 | ||||||||||||
1,734 | Rouse Properties Inc., (3) | 35,061 | ||||||||||||
3,410 | Ryman Hospitalities Properties, (3) | 125,863 | ||||||||||||
2,886 | Sabra Health Care Real Estate Investment Trust Inc. | 77,633 | ||||||||||||
606 | Saul Centers Inc., (3) | 28,482 | ||||||||||||
1,576 | Select Income REIT | 43,419 | ||||||||||||
1,097 | Silver Bay Realty Trust Corporation | 16,960 | ||||||||||||
2,427 | Sovran Self Storage Inc. | 185,641 | ||||||||||||
3,234 | STAG Industrial Inc. | 67,623 | ||||||||||||
14,015 | Strategic Hotels & Resorts Inc., (2) | 121,931 | ||||||||||||
6,152 | Summit Hotel Properties Inc. | 56,537 | ||||||||||||
2,771 | Sun Communities Inc. | 123,503 | ||||||||||||
12,587 | Sunstone Hotel Investors Inc. | 166,778 | ||||||||||||
1,932 | Terreno Realty Corporation | 34,351 | ||||||||||||
1,168 | UMH Properties Inc. | 11,750 | ||||||||||||
920 | Universal Health Realty Income Trust | 40,406 | ||||||||||||
1,927 | Urstadt Biddle Properties Inc., (3) | 38,039 | ||||||||||||
5,140 | Washington Real Estate Investment Trust | 134,719 |
100 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||
1,878 | Western Asset Mortgage Capital Corporation, (3) | $ | 30,255 | |||||||||||
1,318 | Whitestone Real Estate Investment Trust, (3) | 18,175 | ||||||||||||
2,251 | Winthrop Realty Trust, Inc. | 26,494 | ||||||||||||
436 | ZAIS Financial Corporation | 7,586 | ||||||||||||
Total Real Estate Investment Trust | 8,991,598 | |||||||||||||
Real Estate Management & Development – 0.3% | ||||||||||||||
3,327 | Alexander & Baldwin Inc. | 123,099 | ||||||||||||
3,256 | Altisource Residential Corporation | 86,512 | ||||||||||||
731 | AV Homes Inc., (2) | 13,962 | ||||||||||||
453 | Consolidated Tomoka Land Company | 16,997 | ||||||||||||
2,679 | Forestar Real Estate Group Inc., (2) | 59,822 | ||||||||||||
4,050 | Kennedy-Wilson Holdings Inc. | 81,162 | ||||||||||||
1,065 | Tejon Ranch Company, (2), (3) | 39,426 | ||||||||||||
2,385 | Thomas Properties Group, Inc. | 16,218 | ||||||||||||
Total Real Estate Management & Development | 437,198 | |||||||||||||
Road & Rail – 0.5% | ||||||||||||||
1,987 | Arkansas Best Corporation | 54,384 | ||||||||||||
1,553 | Celadon Group, Inc. | 28,793 | ||||||||||||
3,318 | Heartland Express, Inc. | 47,646 | ||||||||||||
4,539 | Knight Transportation Inc. | 77,027 | ||||||||||||
1,810 | Marten Transport, Ltd. | 31,928 | ||||||||||||
507 | Patriot Transportation Holding, Inc., (2) | 18,744 | ||||||||||||
1,627 | Quality Distribution, Inc., (2) | 16,726 | ||||||||||||
1,364 | Roadrunner Transportation System Inc., (2) | 36,146 | ||||||||||||
1,877 | Saia, Inc., (2) | 61,059 | ||||||||||||
6,481 | Swift Transportation Company, (2), (3) | 141,221 | ||||||||||||
417 | Universal Truckload Services, Inc. | 11,117 | ||||||||||||
3,275 | Werner Enterprises, Inc., (3) | 75,849 | ||||||||||||
834 | YRC Worldwide Inc., (2) | 7,906 | ||||||||||||
Total Road & Rail | 608,546 | |||||||||||||
Semiconductors & Equipment – 3.1% | ||||||||||||||
3,034 | Advanced Energy Industriess Inc., (2) | 63,350 | ||||||||||||
1,342 | Alpha & Omega Semiconductor Limited, (2) | 9,877 | ||||||||||||
1,430 | Ambarella, Incorporated, (2), (3) | 29,387 | ||||||||||||
5,468 | Amkor Technology Inc., (2) | 29,035 | ||||||||||||
6,361 | Anadigics Inc., (2) | 12,849 | ||||||||||||
5,642 | Applied Micro Circuits Corporation, (2) | 65,786 | ||||||||||||
2,468 | ATMI Inc., (2) | 67,475 | ||||||||||||
8,373 | Axcelis Technologies Inc., (2) | 18,169 |
Nuveen Investments | 101 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Semiconductors & Equipment (continued) | ||||||||||||||
5,139 | Brooks Automation Inc. | $ | 49,540 | |||||||||||
1,800 | Cabot Microelectronics Corporation, (2) | 73,602 | ||||||||||||
3,969 | Cavium Networks Inc., (2), (3) | 159,990 | ||||||||||||
1,712 | CEVA, Inc., (2) | 24,533 | ||||||||||||
4,900 | Cirrus Logic Inc., (2), (3) | 109,907 | ||||||||||||
1,911 | Cohu Inc. | 18,269 | ||||||||||||
11,367 | Cypress Semiconductor Corporation | 105,486 | ||||||||||||
2,775 | Diodes Inc., (2) | 67,211 | ||||||||||||
1,528 | DSP Group Inc., (2) | 11,384 | ||||||||||||
10,771 | Entegris Inc., (2) | 111,480 | ||||||||||||
6,925 | Entropic Communications Inc., (2), (3) | 29,639 | ||||||||||||
2,959 | Exar Corporation, (2) | 34,117 | ||||||||||||
4,170 | FormFactor Inc., (2) | 21,767 | ||||||||||||
1,587 | GSI Technology Inc., (2) | 11,141 | ||||||||||||
9,231 | GT Advanced Technologies, Inc., (2), (3) | 69,233 | ||||||||||||
2,437 | Hittite Microwave Corporation, (2) | 155,700 | ||||||||||||
2,015 | Inphi Corporation, (2) | 29,701 | ||||||||||||
10,190 | Integrated Device Technology, Inc., (2) | 108,422 | ||||||||||||
2,173 | Integrated Silicon Solution, (2) | 23,425 | ||||||||||||
1,334 | Intermolecular Inc, (2) | 7,737 | ||||||||||||
5,369 | International Rectifier Corporation, (2) | 139,809 | ||||||||||||
9,832 | Intersil Holding Corporation, Class A | 109,725 | ||||||||||||
1,870 | IXYS Corporation | 21,748 | ||||||||||||
5,126 | Kopin Corporation, (2) | 18,812 | ||||||||||||
8,940 | Lattice Semiconductor Corporation, (2) | 45,862 | ||||||||||||
3,676 | LTX-Credence Corporation, (2) | 22,534 | ||||||||||||
818 | MA-COM Technology Solutions Holdings Incorporated, (2) | 14,127 | ||||||||||||
1,788 | Maxlinear Inc., (2) | 15,484 | ||||||||||||
3,599 | Micrel, Incorporated | 33,111 | ||||||||||||
7,183 | Microsemi Corporation, (2) | 180,509 | ||||||||||||
3,344 | Mindspeed Technologies, Inc., (2), (3) | 9,664 | ||||||||||||
4,098 | MKS Instruments Inc. | 121,465 | ||||||||||||
2,843 | Monolithic Power Systems, Inc., (3) | 90,521 | ||||||||||||
3,635 | MoSys, Inc., (2) | 15,994 | ||||||||||||
1,786 | Nanometrics Inc., (2) | 33,184 | ||||||||||||
1,561 | NeoPhotonics Corporation, (2) | 11,067 | ||||||||||||
375 | NVE Corporation, (2) | 20,014 | ||||||||||||
4,173 | Omnivision Technologies, Inc., (2) | 58,464 | ||||||||||||
1,943 | PDF Solutions, Inc., (2) | 44,631 |
102 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Semiconductors & Equipment (continued) | ||||||||||||||
2,043 | Peregrine Semiconductor Corporation, (2), (3) | $ | 16,630 | |||||||||||
1,773 | Pericom Semiconductor Corporation, (2) | 14,326 | ||||||||||||
4,698 | Photronics Inc., (2) | 39,463 | ||||||||||||
3,523 | PLX Technologies Inc., (2), (3) | 21,279 | ||||||||||||
15,772 | PMC-Sierra, Inc., (2) | 92,582 | ||||||||||||
2,240 | Power Integrations Inc. | 128,666 | ||||||||||||
8,630 | Rambus Inc., (2) | 75,426 | ||||||||||||
21,741 | RF Micro Devices, Inc., (2) | 114,140 | ||||||||||||
1,368 | Rubicon Technology Inc., (2), (3) | 11,765 | ||||||||||||
2,525 | Rudolph Technologies, (2) | 26,765 | ||||||||||||
5,207 | Semtech Corporation, (2), (3) | 161,990 | ||||||||||||
2,367 | Sigma Designs, Inc., (2) | 12,876 | ||||||||||||
5,967 | Silicon Image, Inc., (2) | 31,327 | ||||||||||||
3,656 | Spansion Inc., Class A, (2) | 43,762 | ||||||||||||
20,536 | SunEdison Inc., (2), (3) | 190,985 | ||||||||||||
3,187 | SunPower Corporation, (2), (3) | 96,216 | ||||||||||||
761 | Supertex Inc. | 19,413 | ||||||||||||
2,512 | Synaptics, Inc., (2) | 116,808 | ||||||||||||
4,079 | Tessera Technologies Inc. | 77,583 | ||||||||||||
12,621 | TriQuint Semiconductor, Inc., (2) | 100,085 | ||||||||||||
1,847 | Ultra Clean Holdings, Inc., (2) | 17,196 | ||||||||||||
2,143 | Ultratech Stepper Inc., (2) | 50,982 | ||||||||||||
3,026 | Veeco Instruments Inc., (2) | 88,389 | ||||||||||||
Total Semiconductors & Equipment | 4,073,591 | |||||||||||||
Software – 3.8% | ||||||||||||||
4,317 | Accelrys, Inc., (2) | 40,364 | ||||||||||||
3,080 | ACI Worldwide, Inc., (2) | 169,770 | ||||||||||||
3,658 | Actuate Corporation, (2) | 29,301 | ||||||||||||
2,523 | Advent Software Inc. | 84,647 | ||||||||||||
1,855 | American Software, Inc. | 16,231 | ||||||||||||
7,244 | Aspen Technology Inc., (2) | 276,938 | ||||||||||||
1,851 | AVG Technologies NV, (2) | 37,205 | ||||||||||||
3,529 | Blackbaud, Inc. | 127,044 | ||||||||||||
2,925 | Bottomline Technologies, Inc., (2) | 91,904 | ||||||||||||
2,168 | Broadsoft Inc., (2), (3) | 70,937 | ||||||||||||
2,904 | Callidus Software, Inc., (2) | 30,056 | ||||||||||||
3,594 | CommVault Systems, Inc., (2) | 280,620 | ||||||||||||
1,715 | Comverse Incorporated, (2) | 54,160 | ||||||||||||
618 | Cyan Inc., (2) | 2,911 |
Nuveen Investments | 103 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Software (continued) | ||||||||||||||
526 | Digimarc Corporation | $ | 11,078 | |||||||||||
2,404 | Ebix, Inc., (3) | 27,358 | ||||||||||||
2,035 | Ellie Mae Incorporated, (2) | 58,812 | ||||||||||||
2,431 | EPIQ Systems, Inc. | 36,368 | ||||||||||||
290 | ePlus, Inc. | 15,764 | ||||||||||||
2,774 | Fair Isaac Corporation | 158,895 | ||||||||||||
1,263 | Fleetmatics Group Limited, (2) | 40,100 | ||||||||||||
599 | Gigamon Inc., (2) | 18,437 | ||||||||||||
4,379 | Glu Mobile, Inc., (2), (3) | 14,889 | ||||||||||||
1,298 | Guidance Software, Inc., (2) | 11,345 | ||||||||||||
3,758 | Guidewire Software Incorporated, (2) | 190,606 | ||||||||||||
1,561 | Imperva Incorporated, (2) | 59,849 | ||||||||||||
3,872 | Infoblox, Incorporated, (2) | 172,110 | ||||||||||||
1,197 | Interactive Intelligence Group, (2) | 73,556 | ||||||||||||
3,061 | Jive Software Inc., (2) | 33,334 | ||||||||||||
1,504 | Manhattan Associates Inc., (2) | 160,191 | ||||||||||||
7,373 | Mentor Graphics Corporation | 162,796 | ||||||||||||
699 | Microstrategy Inc., (2) | 85,271 | ||||||||||||
1,928 | Mitek Systems Inc., (2) | 10,199 | ||||||||||||
627 | Model N Inc., (2), (3) | 5,637 | ||||||||||||
2,955 | Monotype Imaging Holdings Inc. | 83,390 | ||||||||||||
2,799 | NetScout Systems, Inc., (2) | 79,268 | ||||||||||||
9,247 | Parametric Technology Corporation, (2) | 256,327 | ||||||||||||
1,344 | Pegasystems, Inc. | 51,153 | ||||||||||||
4,262 | Progress Software Corporation, (2) | 110,642 | ||||||||||||
1,687 | Proofpoint, Incorporated, (2) | 53,377 | ||||||||||||
1,738 | PROS Holdings, Inc., (2) | 61,438 | ||||||||||||
463 | QAD Inc A | 6,908 | ||||||||||||
6,727 | QLIK Technologies Inc., (2) | 170,462 | ||||||||||||
1,151 | Qualys Incorporated, (2) | 23,941 | ||||||||||||
497 | Rally Software Development Corporation, (2) | 13,335 | ||||||||||||
3,598 | RealPage Inc., (2), (3) | 88,259 | ||||||||||||
896 | Rosetta Stone Inc., (2) | 13,601 | ||||||||||||
1,310 | Sapiens International Corporation NV | 8,450 | ||||||||||||
2,531 | SeaChange International, Inc., (2) | 35,915 | ||||||||||||
457 | Silver Springs Networks Inc., (2) | 9,981 | ||||||||||||
4,504 | SS&C Technologies Holdings Inc., (2) | 177,007 | ||||||||||||
2,252 | Synchronoss Technologies, Inc., (2), (3) | 77,964 | ||||||||||||
6,260 | Take-Two Interactive Software, Inc., (2) | 112,117 |
104 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Software (continued) | ||||||||||||||
2,395 | Tangoe Inc., (2), (3) | $ | 45,745 | |||||||||||
3,678 | TeleCommunication Systems, (2) | 8,386 | ||||||||||||
1,148 | TeleNav Inc., (2) | 8,323 | ||||||||||||
9,786 | TiVo, Inc., (2) | 130,056 | ||||||||||||
2,435 | Tyler Technologies Inc., (2) | 235,489 | ||||||||||||
2,137 | Ultimate Software Group, Inc., (2) | 330,124 | ||||||||||||
2,235 | Vasco Data Security International, Inc., (2) | 16,785 | ||||||||||||
4,073 | Verint Systems Inc., (2) | 148,746 | ||||||||||||
3,263 | VirnetX Holding Corporation, (2), (3) | 70,938 | ||||||||||||
5,184 | Vringo Inc., (2), (3) | 14,619 | ||||||||||||
Total Software | 5,101,429 | |||||||||||||
Specialty Retail – 3.0% | ||||||||||||||
6,066 | Aeropostale, Inc., (2), (3) | 56,353 | ||||||||||||
622 | America’s Car-Mart, Inc., (2), (3) | 28,450 | ||||||||||||
3,647 | Ann Inc., (2) | 128,958 | ||||||||||||
2,410 | Asbury Automotive Group, Inc., (2) | 115,801 | ||||||||||||
3,123 | Barnes & Noble Inc., (2) | 44,128 | ||||||||||||
2,689 | bebe stores, inc., (3) | 16,215 | ||||||||||||
1,300 | Big 5 Sporting Goods Corporation | 24,583 | ||||||||||||
1,278 | Body Central Corporation, (2) | 7,157 | ||||||||||||
3,344 | Brown Shoe Inc. | 75,039 | ||||||||||||
2,159 | Buckle Inc., (3) | 105,661 | ||||||||||||
2,130 | Cato Corporation | 63,836 | ||||||||||||
1,786 | Childrens Place Retail Stores Inc., (2) | 97,498 | ||||||||||||
2,807 | Christopher & Banks Corporation, (2) | 16,196 | ||||||||||||
1,195 | Citi Trends, Inc., (2), (3) | 17,543 | ||||||||||||
1,736 | Conn’s, Inc., (2) | 104,924 | ||||||||||||
1,046 | Destination Maternity Corporation | 32,677 | ||||||||||||
3,255 | Destination XL Group Inc., (2), (3) | 22,622 | ||||||||||||
6,599 | Express Inc., (2) | 153,163 | ||||||||||||
3,806 | Finish Line, Inc. | 95,302 | ||||||||||||
2,534 | Five Below, Incorporated, (2) | 122,291 | ||||||||||||
3,404 | Francescas Holdings Corporation, (2), (3) | 61,238 | ||||||||||||
1,857 | Genesco Inc., (2) | 126,480 | ||||||||||||
1,681 | Group 1 Automotive Inc., (3) | 107,584 | ||||||||||||
1,527 | Haverty Furniture Companies Inc. | 42,466 | ||||||||||||
993 | Hhgregg Inc., (2), (3) | 15,401 | ||||||||||||
2,009 | Hibbett Sporting Goods, Inc., (2), (3) | 117,185 | ||||||||||||
2,161 | Joseph A Bank Clothiers, Inc., (2) | 103,685 |
Nuveen Investments | 105 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Specialty Retail (continued) | ||||||||||||||
1,078 | Kirkland’s, Inc., (2) | $ | 19,135 | |||||||||||
1,716 | Lithia Motors Inc. | 107,851 | ||||||||||||
2,124 | Lumber Liquidators Inc., (2), (3) | 242,540 | ||||||||||||
1,804 | Marinemax Inc., (2) | 26,573 | ||||||||||||
1,039 | Mattress Firm Holding Corporation, (2), (3) | 31,232 | ||||||||||||
3,886 | Mens Wearhouse Inc. | 164,378 | ||||||||||||
2,418 | Monro Muffler Brake, Inc., (3) | 111,228 | ||||||||||||
2,225 | New York & Company Inc., (2) | 11,392 | ||||||||||||
19,021 | Office Depot, Inc., (2) | 106,327 | ||||||||||||
6,726 | OfficeMax Inc., (3) | 100,755 | ||||||||||||
3,568 | Pacific Sunwear of California, Inc., (2) | 9,598 | ||||||||||||
3,265 | Penske Auto Group, Inc. | 129,359 | ||||||||||||
4,110 | Pep Boys - Manny, Moe & Jack, (2) | 53,183 | ||||||||||||
7,327 | Pier 1 Imports, Inc. | 152,988 | ||||||||||||
7,705 | RadioShack Corporation, (2), (3) | 21,651 | ||||||||||||
4,120 | Rent-A-Center Inc., (3) | 141,069 | ||||||||||||
1,367 | Restoration Hardware Holdings Incorporated, (2) | 95,335 | ||||||||||||
668 | Sears Hometown and Outlet Stores, (2) | 18,610 | ||||||||||||
4,302 | Select Comfort Corporation, (2) | 78,813 | ||||||||||||
1,159 | Shoe Carnival, Inc. | 30,122 | ||||||||||||
3,010 | Sonic Automotive Inc. | 67,063 | ||||||||||||
2,528 | Stage Stores Inc., (3) | 52,203 | ||||||||||||
2,139 | Stein Mart, Inc. | 31,593 | ||||||||||||
818 | Systemax Inc. | 7,771 | ||||||||||||
1,426 | Tile Shop Holdings Inc., (2) | 31,843 | ||||||||||||
764 | Tilly’s Inc, Class A Shares, (2) | 11,124 | ||||||||||||
818 | Trans World Entertainment Corporation | 3,542 | ||||||||||||
2,347 | Vitamin Shoppe Inc., (2), (3) | 110,098 | ||||||||||||
1,312 | West Marine, Inc., (2) | 16,020 | ||||||||||||
6,878 | Wet Seal Inc., (2) | 22,766 | ||||||||||||
168 | Winmark Corporation | 12,299 | ||||||||||||
2,510 | Zale Corporation, (2) | 39,231 | ||||||||||||
1,632 | Zumiez, Inc., (2) | 48,372 | ||||||||||||
Total Specialty Retail | 4,008,500 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.2% | ||||||||||||||
4,481 | American Apparel, Inc., (2), (3) | 6,005 | ||||||||||||
847 | Columbia Sportswear Company, (3) | 56,639 | ||||||||||||
713 | Costa Inc., (2) | 14,346 | ||||||||||||
6,812 | Crocs, Inc., (2) | 82,970 |
106 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||||||||
631 | Culp Inc. | $ | 12,210 | |||||||||||
9,273 | Fifth & Pacific Companies Inc., (2) | 245,642 | ||||||||||||
1,298 | G III Apparel Group, Limited, (2) | 73,623 | ||||||||||||
4,409 | Iconix Brand Group, Inc., (2), (3) | 159,121 | ||||||||||||
6,192 | Jones Apparel Group Inc. | 96,224 | ||||||||||||
1,365 | Movado Group Inc. | 63,650 | ||||||||||||
1,040 | Oxford Industries Inc., (3) | 74,641 | ||||||||||||
952 | Perry Ellis International, Inc. | 18,098 | ||||||||||||
10,247 | Quiksilver Inc., (2) | 85,255 | ||||||||||||
771 | R.G. Barry Corporation | 14,711 | ||||||||||||
2,990 | Skechers USA Inc., (2), (3) | 87,129 | ||||||||||||
4,650 | Steven Madden Limited, (2) | 170,562 | ||||||||||||
3,702 | Tumi Holdings Inc., (2) | 79,038 | ||||||||||||
1,153 | Unifi Inc., (2) | 28,122 | ||||||||||||
1,673 | Vera Bradley Inc., (2) | 37,057 | ||||||||||||
3,878 | Wolverine World Wide Inc., (3) | 223,916 | ||||||||||||
Total Textiles, Apparel & Luxury Goods | 1,628,959 | |||||||||||||
Thrifts & Mortgage Finance – 1.5% | ||||||||||||||
6,826 | Astoria Financial Corporation | 90,171 | ||||||||||||
1,262 | Banc of California Inc., (3) | 17,807 | ||||||||||||
3,589 | Bank Mutual Corporation | 22,826 | ||||||||||||
1,630 | BankFinancial Corporation | 15,143 | ||||||||||||
520 | BBX Capital Corporation, (2) | 6,859 | ||||||||||||
2,472 | Beneficial Mutual Bancorp Inc., (2) | 24,102 | ||||||||||||
1,939 | Berkshire Hills Bancorp, Inc. | 49,192 | ||||||||||||
936 | BofI Holdings, Inc., (2) | 56,553 | ||||||||||||
5,418 | Brookline Bancorp, Inc. | 48,058 | ||||||||||||
10,733 | Capitol Federal Financial Inc. | 135,987 | ||||||||||||
1,640 | Charter Financial Corporation | 17,778 | ||||||||||||
634 | Clifton Savings Bancorp, Inc. | 8,007 | ||||||||||||
2,461 | Dime Community Bancshares, Inc. | 40,262 | ||||||||||||
505 | Doral Financial Group, (2) | 8,535 | ||||||||||||
993 | ESB Financial Corporation | 13,217 | ||||||||||||
730 | ESSA Bancorp Inc. | 8,001 | ||||||||||||
6,222 | Everbank Financial Corporation | 94,077 | ||||||||||||
796 | Federal Agricultural Mortgage Corporation | 28,409 | ||||||||||||
755 | First Defiance Financial Corporation | 19,494 | ||||||||||||
226 | First Federal Bancshares of Arkansas, Inc., (2) | 2,029 | ||||||||||||
1,186 | First Financial Northwest Inc. | 12,856 |
Nuveen Investments | 107 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Thrifts & Mortgage Finance (continued) | ||||||||||||||
1,534 | Flagstar Bancorp Inc., (2) | $ | 24,866 | |||||||||||
942 | Fox Chase Bancorp. | 16,268 | ||||||||||||
831 | Franklin Financial Corporation | 15,681 | ||||||||||||
99 | Hingham Institution for Savings | 7,199 | ||||||||||||
507 | Home Bancorp Inc., (2) | 9,212 | ||||||||||||
5,490 | Home Loan Servicing Solutions Limited | 129,619 | ||||||||||||
1,002 | HomeStreet Inc. | 19,058 | ||||||||||||
1,109 | Kearny Financial Corporation, (2) | 11,645 | ||||||||||||
628 | Meridian Interstate Bancorp, Inc., (2) | 14,909 | ||||||||||||
396 | Meta Financial Group, Inc. | 14,739 | ||||||||||||
25,064 | MGIC Investment Corporation, (2) | 204,021 | ||||||||||||
324 | NASB Financial, Inc., (2) | 8,343 | ||||||||||||
4,194 | Northfield Bancorp Inc. | 54,228 | ||||||||||||
6,753 | Northwest Bancshares Inc., (3) | 94,474 | ||||||||||||
1,064 | OceanFirst Financial Corporation | 18,716 | ||||||||||||
3,508 | Oritani Financial Corporation | 56,900 | ||||||||||||
987 | PennyMac Financial Services Inc., (2) | 15,891 | ||||||||||||
720 | Provident Financial Holdings, Inc., (3) | 10,915 | ||||||||||||
4,614 | Provident Financial Services Inc. | 86,466 | ||||||||||||
3,429 | Provident New York Bancorp., (3) | 40,188 | ||||||||||||
13,363 | Radian Group Inc., (3) | 194,699 | ||||||||||||
1,976 | Rockville Financial Inc. | 25,984 | ||||||||||||
542 | Roma Financial Corporation, (2) | 10,547 | ||||||||||||
766 | Territorial Bancorp Inc. | 16,706 | ||||||||||||
497 | Tree.com Inc. | 14,666 | ||||||||||||
7,282 | TrustCo Bank Corporation NY, (3) | 48,935 | ||||||||||||
3,810 | United Community Financial Corporation, (2) | 15,240 | ||||||||||||
1,521 | United Financial Bancorp. | 23,849 | ||||||||||||
1,273 | Walker & Dunlop Inc., (2) | 16,524 | ||||||||||||
569 | Waterstone Financial Inc., (2) | 6,054 | ||||||||||||
1,478 | Westfield Financial Inc. | 10,656 | ||||||||||||
606 | WSFS Financial Corporation | 42,426 | ||||||||||||
Total Thrifts & Mortgage Finance | 1,998,987 | |||||||||||||
Tobacco – 0.1% | ||||||||||||||
6,774 | Alliance One International, Inc., (2) | 20,119 | ||||||||||||
1,804 | Universal Corporation, (3) | 95,666 | ||||||||||||
4,320 | Vector Group Ltd., (3) | 69,854 | ||||||||||||
Total Tobacco | 185,639 |
108 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Trading Companies & Distributors – 0.9% | ||||||||||||||
2,118 | Aceto Corporation | $ | 33,782 | |||||||||||
5,293 | Aircastle LTD | 99,879 | ||||||||||||
3,258 | Applied Industrial Technologies Inc. | 154,136 | ||||||||||||
3,764 | Beacon Roofing Supply Company, (2) | 130,648 | ||||||||||||
2,937 | Bluelinx Holdings Inc., (2) | 5,463 | ||||||||||||
1,328 | CAI International Inc., (2) | 29,070 | ||||||||||||
732 | DXP Enterprises, Inc., (2) | 67,271 | ||||||||||||
1,319 | Edgen Group Incorporated, (2), (3) | 15,788 | ||||||||||||
2,297 | H&E Equipment Services, Inc., (2) | 57,494 | ||||||||||||
1,385 | Houston Wire & Cable Company | 19,210 | ||||||||||||
2,090 | Kaman Corporation | 77,706 | ||||||||||||
2,681 | Rush Enterprises, Class A, (2), (3) | 76,730 | ||||||||||||
620 | Stock Building Supply Holdings Inc., (2) | 9,548 | ||||||||||||
2,617 | TAL International Group Inc., (3) | 126,427 | ||||||||||||
1,647 | Textainer Group Holdings Limited, (3) | 62,421 | ||||||||||||
1,331 | Titan Machinery, Inc., (2), (3) | 23,479 | ||||||||||||
1,985 | Watsco Inc. | 189,151 | ||||||||||||
Total Trading Companies & Distributors | 1,178,203 | |||||||||||||
Transportation Infrastructure – 0.1% | ||||||||||||||
3,183 | Wesco Aircraft Holdings Inc., (2) | 58,313 | ||||||||||||
Water Utilities – 0.2% | ||||||||||||||
2,980 | American States Water Co | 84,865 | ||||||||||||
586 | Artesian Resources Corporation | 13,414 | ||||||||||||
3,690 | California Water Service Group | 80,437 | ||||||||||||
836 | Connecticut Water Service, Inc. | 26,789 | ||||||||||||
1,131 | Consolidated Water Company, Limited | 17,005 | ||||||||||||
1,223 | Middlesex Water Company | 25,348 | ||||||||||||
1,331 | Pure Cycle Corporation, (2) | 8,886 | ||||||||||||
1,196 | SJW Corporation | 33,762 | ||||||||||||
999 | York Water Company | 20,689 | ||||||||||||
Total Water Utilities | 311,195 | |||||||||||||
Wireless Telecommunication Services – 0.2% | ||||||||||||||
1,435 | Boingo Wireless Inc., (2) | 9,729 | ||||||||||||
4,174 | Leap Wireless International, Inc., (2), (3) | 67,201 | ||||||||||||
13,298 | NII Holdings Inc., Class B, (2), (3) | 45,745 | ||||||||||||
1,182 | NTELOS Holdings Corporation | 22,505 | ||||||||||||
1,854 | Shenandoah Telecommunications Company, (3) | 51,411 | ||||||||||||
1,673 | USA Mobility Inc. | 24,961 | ||||||||||||
Total Wireless Telecommunication Services | 221,552 | |||||||||||||
Total Common Stocks (cost $85,119,948) | 121,515,444 |
Nuveen Investments | 109 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Index Fund (continued)
Shares | Description (1), (4) | Value | ||||||||||||||||||
EXCHANGE-TRADED FUNDS – 0.0% | ||||||||||||||||||||
591 | Firsthand Technology Value Fund, Incorporated | $ | 13,776 | |||||||||||||||||
Total Exchange-Traded Funds (cost $10,630) | 13,776 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
COMMON STOCK RIGHTS – 0.0% | ||||||||||||||||||||
2,858 | Caesar’s Entertainment Company, (2), (3), (5) | $ | — | |||||||||||||||||
692 | Clinical Data, Inc., (2), (5) | — | ||||||||||||||||||
3,767 | Cubist Pharmaceuticals Inc., (2) | 7,270 | ||||||||||||||||||
1,493 | Gerber Scientific Inc., (2), (5) | — | ||||||||||||||||||
Total Common Stock Rights (cost $6,958) | 7,270 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
WARRANTS – 0.0% | ||||||||||||||||||||
1,328 | Magnum Hunter Resources Corporation Warrants, (3), (5) | $ | 2,675 | |||||||||||||||||
424 | OncoMed Pharmaceuticals Inc., (2), (5) | — | ||||||||||||||||||
157 | Tejon Ranch Company, (2) | 840 | ||||||||||||||||||
2,878 | Trius Therapeutics Inc., (2), (5) | — | ||||||||||||||||||
Total Warrants (cost $855) | 3,515 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 22.0% |
| |||||||||||||||||||
Money Market Funds – 22.0% | ||||||||||||||||||||
29,409,661 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (6), (7) | $ | 29,409,661 | |||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $29,409,661) | 29,409,661 | |||||||||||||||||||
Total Long-Term Investments (cost $114,548,052) | 150,949,666 | |||||||||||||||||||
Shares/ Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (8) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 8.4% |
| |||||||||||||||||||
Money Market Funds – 8.0% |
| |||||||||||||||||||
10,672,790 | First American Treasury Obligations Fund, Class Z | 0.000% | (6) | N/A | N/A | $ | 10,672,790 | |||||||||||||
U.S. Government and Agency Obligations – 0.4% |
| |||||||||||||||||||
$ | 600 | U.S. Treasury Bills, (9) | 0.000% | 2/13/14 | N/R | 599,914 | ||||||||||||||
|
| |||||||||||||||||||
Total Short-Term Investments (cost $11,272,695) |
| 11,272,704 | ||||||||||||||||||
Total Investments (cost $125,820,747) – 121.1% |
| 162,222,370 | ||||||||||||||||||
Other Assets Less Liabilities – (21.1)% (10) |
| (28,255,067 | ) | |||||||||||||||||
Net Assets – 100% |
| $ | 133,967,303 |
110 | Nuveen Investments |
Investments in Derivatives as of October 31, 2013
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
Russell 2000 Mini Index | Long | 110 | 12/13 | $ | 12,075,798 | $ | 433,973 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(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 at the end of the reporting period was $27,812,870. |
(4) | A copy of the most recent financial statements for the exchange-traded funds in which the Fund invests can be obtained from the Securities and Exchange Commission on its website at http://www.sec.gov. |
(5) | 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 Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(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, and 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, Note 3 – Portfolio Securities and Investment in Derivatives, Securities Lending for more information. |
(8) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(9) | Investment, or portion of investment, segregated as collateral for investments in derivatives. |
(10) | Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period. |
N/A | Not applicable. |
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
Nuveen Investments | 111 |
Assets & Liabilities October 31, 2013
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $326,783,741, $406,783,982 and $85,138,391, respectively) | $ | 778,058,377 | $ | 568,122,457 | $ | 121,540,005 | ||||||
Short-term investments, at value (cost $11,391,181, $37,856,345 and $11,272,695, respectively) | 11,391,226 | 37,856,375 | 11,272,704 | |||||||||
Investment purchased with collateral from securities lending (at cost, which approximates value) | 76,321,947 | 173,913,770 | 29,409,661 | |||||||||
Cash | 11,952 | — | 448 | |||||||||
Receivable for: | ||||||||||||
Dividends | 793,401 | 231,310 | 44,008 | |||||||||
Due from broker | 8,390 | 33,562 | 21,234 | |||||||||
Investments sold | — | — | 16,250 | |||||||||
Reclaims | — | — | 30 | |||||||||
Shares sold | 902,623 | 2,805,142 | 1,619,283 | |||||||||
Other assets | 15,763 | 9,044 | 2,867 | |||||||||
Total assets | 867,503,679 | 782,971,660 | 163,926,490 | |||||||||
Liabilities | ||||||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 76,321,947 | 173,913,770 | 29,409,661 | |||||||||
Investments purchased | 689,306 | 905,088 | 222,906 | |||||||||
Shares redeemed | 694,347 | 820,037 | 95,605 | |||||||||
Variation margin on future contracts | 55,200 | 123,999 | 85,162 | |||||||||
Accrued expenses: | ||||||||||||
Directors fees | 20,255 | 11,588 | 1,016 | |||||||||
Management fees | 125,341 | 223,102 | 15,327 | |||||||||
12b-1 distribution and service fees | 73,848 | 124,750 | 27,855 | |||||||||
Other | 283,431 | 206,647 | 101,655 | |||||||||
Total liabilities | 78,263,675 | 176,328,981 | 29,959,187 | |||||||||
Net assets | $ | 789,240,004 | $ | 606,642,679 | $ | 133,967,303 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 183,491,058 | $ | 185,941,772 | $ | 41,769,328 | ||||||
Shares outstanding | 6,770,224 | 10,623,811 | 2,785,932 | |||||||||
Net asset value and offering price per share | $ | 27.10 | $ | 17.50 | $ | 14.99 | ||||||
Class B Shares | ||||||||||||
Net assets | $ | 2,042,318 | N/A | N/A | ||||||||
Shares outstanding | 76,727 | N/A | N/A | |||||||||
Net asset value and offering price per share | $ | 26.62 | N/A | N/A | ||||||||
Class C Shares | ||||||||||||
Net assets | $ | 10,751,901 | $ | 10,925,303 | $ | 2,154,585 | ||||||
Shares outstanding | 400,842 | 647,446 | 150,610 | |||||||||
Net asset value and offering price per share | $ | 26.82 | $ | 16.87 | $ | 14.31 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 61,823,265 | $ | 186,673,286 | $ | 41,349,726 | ||||||
Shares outstanding | 2,285,995 | 10,801,588 | 2,828,670 | |||||||||
Net asset value and offering price per share | $ | 27.04 | $ | 17.28 | $ | 14.62 | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 531,131,462 | $ | 223,102,318 | $ | 48,693,664 | ||||||
Shares outstanding | 19,602,939 | 12,701,131 | 3,238,219 | |||||||||
Net asset value and offering price per share | $ | 27.09 | $ | 17.57 | $ | 15.04 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 291,868,310 | $ | 419,345,772 | $ | 89,940,404 | ||||||
Undistributed (Over-distribution of) net investment income | 1,939,115 | 3,913,246 | 1,002,079 | |||||||||
Accumulated net realized gain (loss) | 43,739,965 | 20,574,977 | 6,189,224 | |||||||||
Net unrealized appreciation (depreciation) | 451,692,614 | 162,808,684 | 36,835,596 | |||||||||
Net assets | $ | 789,240,004 | $ | 606,642,679 | $ | 133,967,303 | ||||||
Authorized shares – per class | $ | 2 billion | $ | 2 billion | $ | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
N/A | – Fund does not offer share class. |
See accompanying notes to financial statements.
112 | Nuveen Investments |
Operations Year Ended October 31, 2013
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income | $ | 16,766,831 | $ | 7,709,201 | $ | 1,707,634 | ||||||
Securities lending income, net | 108,127 | 281,557 | 234,047 | |||||||||
Total investment income | 16,874,958 | 7,990,758 | 1,941,681 | |||||||||
Expenses | ||||||||||||
Management fees | 2,112,575 | 1,573,150 | 353,734 | |||||||||
12b-1 service fees – Class A | 411,041 | 359,455 | 84,815 | |||||||||
12b-1 distribution and service fees – Class B | 22,403 | N/A | N/A | |||||||||
12b-1 distribution and service fees – Class C | 92,422 | 78,321 | 17,267 | |||||||||
12b-1 distribution and service fees – Class R3 | 227,448 | 748,528 | 145,703 | |||||||||
Shareholder servicing agent fees and expenses | 984,764 | 591,403 | 134,724 | |||||||||
Custodian fees and expenses | 158,622 | 105,728 | 145,778 | |||||||||
Directors fees and expenses | 19,648 | 12,993 | 2,909 | |||||||||
Professional fees | 59,807 | 42,736 | 32,117 | |||||||||
Shareholder reporting expenses | 79,530 | 80,359 | 16,851 | |||||||||
Federal and state registration fees | 73,139 | 77,417 | 53,086 | |||||||||
Other expenses | 38,391 | 32,020 | 116,773 | |||||||||
Total expenses before fee waiver/expense reimbursement | 4,279,790 | 3,702,110 | 1,103,757 | |||||||||
Fee waiver/expense reimbursement | (702,576 | ) | (114,024 | ) | (260,301 | ) | ||||||
Net expenses | 3,577,214 | 3,588,086 | 843,456 | |||||||||
Net investment income (loss) | 13,297,744 | 4,402,672 | 1,098,225 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments | 52,253,862 | 15,293,322 | 4,297,107 | |||||||||
Future contracts | 5,449,087 | 5,999,365 | 1,950,317 | |||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments | 107,601,627 | 108,525,486 | 23,359,562 | |||||||||
Future contracts | 833,236 | 2,220,304 | 687,238 | |||||||||
Net realized and unrealized gain (loss) | 166,137,812 | 132,038,477 | 30,294,224 | |||||||||
Net increase (decrease) in net assets from operations | $ | 179,435,556 | $ | 136,441,149 | $ | 31,392,449 |
N/A | – Fund does not offer share class. |
See accompanying notes to financial statements.
Nuveen Investments | 113 |
Changes in Net Assets
Equity Index | Mid Cap Index | |||||||||||||||||
Year Ended | Year Ended 10/31/12 | Year Ended | Year Ended 10/31/12 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 13,297,744 | $ | 12,942,590 | $ | 4,402,672 | $ | 2,526,147 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments | 52,253,862 | 16,407,263 | 15,293,322 | 11,219,823 | ||||||||||||||
Futures contracts | 5,449,087 | 4,945,104 | 5,999,365 | 4,173,352 | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments | 107,601,627 | 68,394,043 | 108,525,486 | 20,950,190 | ||||||||||||||
Futures contracts | 833,236 | (1,675,496 | ) | 2,220,304 | (2,256,395 | ) | ||||||||||||
Net increase (decrease) in net assets from operations | 179,435,556 | 101,013,504 | 136,441,149 | 36,613,117 | ||||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A | (2,606,436 | ) | (2,153,086 | ) | (790,895 | ) | (147,244 | ) | ||||||||||
Class B | (19,422 | ) | (28,382 | ) | N/A | N/A | ||||||||||||
Class C | (78,170 | ) | (71,530 | ) | — | — | ||||||||||||
Class R3 | (602,709 | ) | (344,372 | ) | (568,169 | ) | — | |||||||||||
Class I | (9,873,135 | ) | (10,616,129 | ) | (1,643,928 | ) | (846,639 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A | (3,515,075 | ) | (8,608,834 | ) | (3,562,726 | ) | (2,675,890 | ) | ||||||||||
Class B | (60,618 | ) | (285,612 | ) | N/A | N/A | ||||||||||||
Class C | (199,974 | ) | (609,468 | ) | (186,176 | ) | (124,428 | ) | ||||||||||
Class R3 | (810,497 | ) | (1,132,075 | ) | (3,920,755 | ) | (2,645,479 | ) | ||||||||||
Class I | (13,293,563 | ) | (42,337,058 | ) | (5,623,072 | ) | (6,112,513 | ) | ||||||||||
Decrease in net assets from distributions to shareholders | (31,059,599 | ) | (66,186,546 | ) | (16,295,721 | ) | (12,552,193 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 129,600,911 | 134,469,795 | 209,556,006 | 159,926,037 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 24,380,950 | 49,279,398 | 13,377,172 | 9,375,784 | ||||||||||||||
153,981,861 | 183,749,193 | 222,933,178 | 169,301,821 | |||||||||||||||
Cost of shares redeemed | (257,387,549 | ) | (217,214,717 | ) | (128,355,020 | ) | (108,835,689 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (103,405,688 | ) | (33,465,524 | ) | 94,578,158 | 60,466,132 | ||||||||||||
Net increase (decrease) in net assets | 44,970,269 | 1,361,434 | 214,723,586 | 84,527,056 | ||||||||||||||
Net assets at the beginning of period | 744,269,735 | 742,908,301 | 391,919,093 | 307,392,037 | ||||||||||||||
Net assets at the end of period | $ | 789,240,004 | $ | 744,269,735 | $ | 606,642,679 | $ | 391,919,093 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,939,115 | $ | 1,668,887 | $ | 3,913,246 | $ | 2,251,442 |
N/A | – Fund does not offer share class. |
See accompanying notes to financial statements.
114 | Nuveen Investments |
Small Cap Index | ||||||||||
Year Ended | Year Ended 10/31/12 | |||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 1,098,225 | $ | 600,158 | ||||||
Net realized gain (loss) from: | ||||||||||
Investments | 4,297,107 | 3,352,368 | ||||||||
Futures contracts | 1,950,317 | 1,249,190 | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||
Investments | 23,359,562 | 3,790,158 | ||||||||
Futures contracts | 687,238 | (681,440 | ) | |||||||
Net increase (decrease) in net assets from operations | 31,392,449 | 8,310,434 | ||||||||
Distributions to Shareholders | ||||||||||
From net investment income: | ||||||||||
Class A | (217,739 | ) | (58,683 | ) | ||||||
Class C | — | — | ||||||||
Class R3 | (103,962 | ) | (3,152 | ) | ||||||
Class I | (328,679 | ) | (200,814 | ) | ||||||
From accumulated net realized gains: | ||||||||||
Class A | (1,103,621 | ) | — | |||||||
Class C | (50,808 | ) | — | |||||||
Class R3 | (813,668 | ) | — | |||||||
Class I | (1,276,552 | ) | — | |||||||
Decrease in net assets from distributions to shareholders | (3,895,029 | ) | (262,649 | ) | ||||||
Fund Share Transactions | ||||||||||
Proceeds from sale of shares | 53,528,206 | 31,082,624 | ||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 3,120,918 | 162,716 | ||||||||
56,649,124 | 31,245,340 | |||||||||
Cost of shares redeemed | (33,996,665 | ) | (28,170,780 | ) | ||||||
Net increase (decrease) in net assets from Fund share transactions | 22,652,459 | 3,074,560 | ||||||||
Net increase (decrease) in net assets | 50,149,879 | 11,122,345 | ||||||||
Net assets at the beginning of period | 83,817,424 | 72,695,079 | ||||||||
Net assets at the end of period | $ | 133,967,303 | $ | 83,817,424 | ||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,002,079 | $ | 493,288 |
See accompanying notes to financial statements.
Nuveen Investments | 115 |
Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
EQUITY INDEX | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (12/92) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 22.35 | $ | .38 | $ | 5.31 | $ | 5.69 | $ | (.39 | ) | $ | (.55 | ) | $ | (.94 | ) | $ | 27.10 | |||||||||||||||
2012 | 21.44 | .34 | 2.48 | 2.82 | (.35 | ) | (1.56 | ) | (1.91 | ) | 22.35 | |||||||||||||||||||||||
2011 | 21.51 | .30 | 1.26 | 1.56 | (.26 | ) | (1.37 | ) | (1.63 | ) | 21.44 | |||||||||||||||||||||||
2010 | 18.86 | .29 | 2.70 | 2.99 | (.30 | ) | (.04 | ) | (.34 | ) | 21.51 | |||||||||||||||||||||||
2009 | 17.61 | .34 | 1.27 | 1.61 | (.36 | ) | — | (.36 | ) | 18.86 | ||||||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | 21.97 | .21 | 5.19 | 5.40 | (.20 | ) | (.55 | ) | (.75 | ) | 26.62 | |||||||||||||||||||||||
2012 | 21.10 | .18 | 2.43 | 2.61 | (.18 | ) | (1.56 | ) | (1.74 | ) | 21.97 | |||||||||||||||||||||||
2011 | 21.19 | .14 | 1.24 | 1.38 | (.10 | ) | (1.37 | ) | (1.47 | ) | 21.10 | |||||||||||||||||||||||
2010 | 18.58 | .13 | 2.66 | 2.79 | (.14 | ) | (.04 | ) | (.18 | ) | 21.19 | |||||||||||||||||||||||
2009 | 17.35 | .22 | 1.25 | 1.47 | (.24 | ) | — | (.24 | ) | 18.58 | ||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||
2013 | 22.13 | .20 | 5.24 | 5.44 | (.20 | ) | (.55 | ) | (.75 | ) | 26.82 | |||||||||||||||||||||||
2012 | 21.24 | .17 | 2.46 | 2.63 | (.18 | ) | (1.56 | ) | (1.74 | ) | 22.13 | |||||||||||||||||||||||
2011 | 21.32 | .13 | 1.26 | 1.39 | (.10 | ) | (1.37 | ) | (1.47 | ) | 21.24 | |||||||||||||||||||||||
2010 | 18.70 | .13 | 2.67 | 2.80 | (.14 | ) | (.04 | ) | (.18 | ) | 21.32 | |||||||||||||||||||||||
2009 | 17.46 | .21 | 1.26 | 1.47 | (.23 | ) | — | (.23 | ) | 18.70 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 22.31 | .31 | 5.30 | 5.61 | (.33 | ) | (.55 | ) | (.88 | ) | 27.04 | |||||||||||||||||||||||
2012 | 21.40 | .28 | 2.48 | 2.76 | (.29 | ) | (1.56 | ) | (1.85 | ) | 22.31 | |||||||||||||||||||||||
2011 | 21.47 | .25 | 1.26 | 1.51 | (.21 | ) | (1.37 | ) | (1.58 | ) | 21.40 | |||||||||||||||||||||||
2010 | 18.83 | .23 | 2.70 | 2.93 | (.25 | ) | (.04 | ) | (.29 | ) | 21.47 | |||||||||||||||||||||||
2009 | 17.58 | .29 | 1.28 | 1.57 | (.32 | ) | — | (.32 | ) | 18.83 | ||||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||
2013 | 22.35 | .45 | 5.29 | 5.74 | (.45 | ) | (.55 | ) | (1.00 | ) | 27.09 | |||||||||||||||||||||||
2012 | 21.43 | .39 | 2.49 | 2.88 | (.40 | ) | (1.56 | ) | (1.96 | ) | 22.35 | |||||||||||||||||||||||
2011 | 21.50 | .36 | 1.26 | 1.62 | (.32 | ) | (1.37 | ) | (1.69 | ) | 21.43 | |||||||||||||||||||||||
2010 | 18.86 | .34 | 2.69 | 3.03 | (.35 | ) | (.04 | ) | (.39 | ) | 21.50 | |||||||||||||||||||||||
2009 | 17.61 | .38 | 1.27 | 1.65 | (.40 | ) | — | (.40 | ) | 18.86 |
116 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
26.32 | % | $ | 183,491 | .71 | % | 1.48 | % | .62 | % | 1.57 | % | 2 | % | |||||||||||||||||
14.51 | 143,664 | .69 | 1.49 | .62 | 1.56 | 1 | ||||||||||||||||||||||||
7.41 | 119,172 | .70 | 1.29 | .62 | 1.37 | 2 | ||||||||||||||||||||||||
15.94 | 119,761 | .79 | 1.23 | .61 | 1.41 | 4 | ||||||||||||||||||||||||
9.51 | 115,213 | .79 | 1.86 | .62 | 2.03 | 10 | ||||||||||||||||||||||||
25.35 | 2,042 | 1.46 | .78 | 1.37 | .87 | 2 | ||||||||||||||||||||||||
13.69 | 2,611 | 1.44 | .76 | 1.37 | .84 | 1 | ||||||||||||||||||||||||
6.60 | 4,227 | 1.45 | .55 | 1.37 | .63 | 2 | ||||||||||||||||||||||||
15.07 | 7,351 | 1.54 | .49 | 1.36 | .67 | 4 | ||||||||||||||||||||||||
8.69 | 9,822 | 1.54 | 1.16 | 1.37 | 1.33 | 10 | ||||||||||||||||||||||||
25.35 | 10,752 | 1.46 | .72 | 1.37 | .82 | 2 | ||||||||||||||||||||||||
13.70 | 8,095 | 1.44 | .75 | 1.37 | .82 | 1 | ||||||||||||||||||||||||
6.61 | 8,261 | 1.45 | .55 | 1.37 | .62 | 2 | ||||||||||||||||||||||||
15.05 | 8,651 | 1.54 | .48 | 1.36 | .66 | 4 | ||||||||||||||||||||||||
8.69 | 8,661 | 1.54 | 1.14 | 1.37 | 1.31 | 10 | ||||||||||||||||||||||||
25.96 | 61,823 | .97 | 1.19 | .87 | 1.29 | 2 | ||||||||||||||||||||||||
14.26 | 33,685 | .94 | 1.22 | .87 | 1.28 | 1 | ||||||||||||||||||||||||
7.15 | 14,218 | .95 | 1.06 | .87 | 1.13 | 2 | ||||||||||||||||||||||||
15.63 | 12,979 | 1.04 | .97 | .86 | 1.15 | 4 | ||||||||||||||||||||||||
9.27 | 10,915 | 1.04 | 1.56 | .87 | 1.73 | 10 | ||||||||||||||||||||||||
26.59 | 531,131 | .46 | 1.76 | .37 | 1.85 | 2 | ||||||||||||||||||||||||
14.85 | 556,215 | .44 | 1.75 | .37 | 1.82 | 1 | ||||||||||||||||||||||||
7.68 | 597,030 | .45 | 1.55 | .37 | 1.63 | 2 | ||||||||||||||||||||||||
16.18 | 749,210 | .54 | 1.48 | .36 | 1.66 | 4 | ||||||||||||||||||||||||
9.78 | 827,145 | .54 | 2.14 | .37 | 2.31 | 10 |
(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, 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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 117 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
MID CAP INDEX | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (11/99) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 13.76 | $ | .13 | $ | 4.17 | $ | 4.30 | $ | (.10 | ) | $ | (.46 | ) | $ | (.56 | ) | $ | 17.50 | |||||||||||||||
2012 | 12.87 | .09 | 1.31 | 1.40 | (.03 | ) | (.48 | ) | (.51 | ) | 13.76 | |||||||||||||||||||||||
2011 | 11.98 | .05 | .92 | .97 | (.08 | ) | — | (.08 | ) | 12.87 | ||||||||||||||||||||||||
2010 | 9.52 | .09 | 2.45 | 2.54 | (.08 | ) | — | (.08 | ) | 11.98 | ||||||||||||||||||||||||
2009 | 8.83 | .09 | 1.27 | 1.36 | (.07 | ) | (.60 | ) | (.67 | ) | 9.52 | |||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 13.28 | .01 | 4.04 | 4.05 | — | (.46 | ) | (.46 | ) | 16.87 | ||||||||||||||||||||||||
2012 | 12.51 | (.01 | ) | 1.26 | 1.25 | — | (.48 | ) | (.48 | ) | 13.28 | |||||||||||||||||||||||
2011 | 11.67 | (.05 | ) | .89 | .84 | — | — | — | 12.51 | |||||||||||||||||||||||||
2010 | 9.28 | .01 | 2.39 | 2.40 | (.01 | ) | — | (.01 | ) | 11.67 | ||||||||||||||||||||||||
2009 | 8.64 | .04 | 1.23 | 1.27 | (.03 | ) | (.60 | ) | (.63 | ) | 9.28 | |||||||||||||||||||||||
Class R3 (11/00) |
| |||||||||||||||||||||||||||||||||
2013 | 13.59 | .10 | 4.11 | 4.21 | (.06 | ) | (.46 | ) | (.52 | ) | 17.28 | |||||||||||||||||||||||
2012 | 12.73 | .06 | 1.28 | 1.34 | — | (.48 | ) | (.48 | ) | 13.59 | ||||||||||||||||||||||||
2011 | 11.86 | .01 | .92 | .93 | (.06 | ) | — | (.06 | ) | 12.73 | ||||||||||||||||||||||||
2010 | 9.43 | .06 | 2.43 | 2.49 | (.06 | ) | — | (.06 | ) | 11.86 | ||||||||||||||||||||||||
2009 | 8.76 | .07 | 1.26 | 1.33 | (.06 | ) | (.60 | ) | (.66 | ) | 9.43 | |||||||||||||||||||||||
Class I (11/99) |
| |||||||||||||||||||||||||||||||||
2013 | 13.81 | .18 | 4.17 | 4.35 | (.13 | ) | (.46 | ) | (.59 | ) | 17.57 | |||||||||||||||||||||||
2012 | 12.92 | .12 | 1.32 | 1.44 | (.07 | ) | (.48 | ) | (.55 | ) | 13.81 | |||||||||||||||||||||||
2011 | 12.03 | .08 | .91 | .99 | (.10 | ) | — | (.10 | ) | 12.92 | ||||||||||||||||||||||||
2010 | 9.55 | .12 | 2.46 | 2.58 | (.10 | ) | — | (.10 | ) | 12.03 | ||||||||||||||||||||||||
2009 | 8.84 | .12 | 1.27 | 1.39 | (.08 | ) | (.60 | ) | (.68 | ) | 9.55 |
118 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
32.46 | % | $ | 185,942 | .76 | % | .84 | % | .73 | % | .86 | % | 7 | % | |||||||||||||||||
11.48 | 104,467 | .80 | .61 | .74 | .67 | 7 | ||||||||||||||||||||||||
8.07 | 68,856 | .79 | .32 | .75 | .36 | 23 | ||||||||||||||||||||||||
26.79 | 36,499 | .86 | .70 | .74 | .82 | 8 | ||||||||||||||||||||||||
17.53 | 22,766 | .92 | .98 | .75 | 1.15 | 18 | ||||||||||||||||||||||||
31.51 | 10,925 | 1.51 | .07 | 1.48 | .10 | 7 | ||||||||||||||||||||||||
10.60 | 5,290 | 1.55 | (.13 | ) | 1.49 | (.07 | ) | 7 | ||||||||||||||||||||||
7.20 | 3,302 | 1.53 | (.42 | ) | 1.50 | (.39 | ) | 23 | ||||||||||||||||||||||
25.86 | 3,100 | 1.61 | (.05 | ) | 1.49 | .07 | 8 | |||||||||||||||||||||||
16.68 | 2,766 | 1.67 | .31 | 1.50 | .48 | 18 | ||||||||||||||||||||||||
32.16 | 186,673 | 1.01 | .60 | .98 | .62 | 7 | ||||||||||||||||||||||||
11.14 | 113,834 | 1.05 | .36 | .99 | .42 | 7 | ||||||||||||||||||||||||
7.83 | 65,060 | 1.04 | .07 | 1.00 | .11 | 23 | ||||||||||||||||||||||||
26.48 | 26,458 | 1.11 | .44 | .99 | .56 | 8 | ||||||||||||||||||||||||
17.29 | 12,212 | 1.17 | .72 | 1.00 | .89 | 18 | ||||||||||||||||||||||||
32.82 | 223,102 | .51 | 1.12 | .48 | 1.14 | 7 | ||||||||||||||||||||||||
11.80 | 168,328 | .55 | .87 | .49 | .93 | 7 | ||||||||||||||||||||||||
8.23 | 170,174 | .53 | .59 | .50 | .63 | 23 | ||||||||||||||||||||||||
27.13 | 202,542 | .61 | .95 | .49 | 1.07 | 8 | ||||||||||||||||||||||||
17.92 | 163,432 | .67 | 1.30 | .50 | 1.47 | 18 |
(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, 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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 119 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
SMALL CAP INDEX | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (12/98) | ||||||||||||||||||||||||||||||||||
2013 | $ | 11.59 | $ | .14 | $ | 3.79 | $ | 3.93 | $ | (.08 | ) | $ | (.45 | ) | $ | (.53 | ) | $ | 14.99 | |||||||||||||||
2012 | 10.43 | .08 | 1.11 | 1.19 | (.03 | ) | — | (.03 | ) | 11.59 | ||||||||||||||||||||||||
2011 | 9.89 | .05 | .55 | .60 | (.06 | ) | — | (.06 | ) | 10.43 | ||||||||||||||||||||||||
2010 | 7.90 | .05 | 1.99 | 2.04 | (.05 | ) | — | (.05 | ) | 9.89 | ||||||||||||||||||||||||
2009 | 8.91 | .06 | .27 | .33 | (.07 | ) | (1.27 | ) | (1.34 | ) | 7.90 | |||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 11.08 | .03 | 3.65 | 3.68 | — | (.45 | ) | (.45 | ) | 14.31 | ||||||||||||||||||||||||
2012 | 10.02 | — | 1.06 | 1.06 | — | — | — | 11.08 | ||||||||||||||||||||||||||
2011 | 9.52 | (.03 | ) | .53 | .50 | — | — | — | 10.02 | |||||||||||||||||||||||||
2010 | 7.62 | (.02 | ) | 1.92 | 1.90 | — | — | — | 9.52 | |||||||||||||||||||||||||
2009 | 8.66 | .01 | .26 | .27 | (.04 | ) | (1.27 | ) | (1.31 | ) | 7.62 | |||||||||||||||||||||||
Class R3 (12/98) |
| |||||||||||||||||||||||||||||||||
2013 | 11.31 | .10 | 3.72 | 3.82 | (.06 | ) | (.45 | ) | (.51 | ) | 14.62 | |||||||||||||||||||||||
2012 | 10.18 | .05 | 1.08 | 1.13 | — | — | — | 11.31 | ||||||||||||||||||||||||||
2011 | 9.66 | .03 | .53 | .56 | (.04 | ) | — | (.04 | ) | 10.18 | ||||||||||||||||||||||||
2010 | 7.73 | .03 | 1.94 | 1.97 | (.04 | ) | — | (.04 | ) | 9.66 | ||||||||||||||||||||||||
2009 | 8.76 | .04 | .26 | .30 | (.06 | ) | (1.27 | ) | (1.33 | ) | 7.73 | |||||||||||||||||||||||
Class I (12/98) |
| |||||||||||||||||||||||||||||||||
2013 | 11.63 | .17 | 3.80 | 3.97 | (.11 | ) | (.45 | ) | (.56 | ) | 15.04 | |||||||||||||||||||||||
2012 | 10.46 | .11 | 1.12 | 1.23 | (.06 | ) | — | (.06 | ) | 11.63 | ||||||||||||||||||||||||
2011 | 9.91 | .08 | .55 | .63 | (.08 | ) | — | (.08 | ) | 10.46 | ||||||||||||||||||||||||
2010 | 7.91 | .07 | 2.00 | 2.07 | (.07 | ) | — | (.07 | ) | 9.91 | ||||||||||||||||||||||||
2009 | 8.92 | .09 | .25 | .34 | (.08 | ) | (1.27 | ) | (1.35 | ) | 7.91 |
120 | 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 | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
35.52 | % | $ | 41,769 | 1.07 | % | .81 | % | .82 | % | 1.06 | % | 11 | % | |||||||||||||||||
11.44 | 28,640 | 1.27 | .28 | .83 | .72 | 20 | ||||||||||||||||||||||||
6.03 | 19,406 | 1.17 | .15 | .83 | .50 | 14 | ||||||||||||||||||||||||
25.91 | 12,667 | 1.49 | (.15 | ) | .79 | .55 | 12 | |||||||||||||||||||||||
6.34 | 8,591 | 1.66 | .03 | .82 | .87 | 22 | ||||||||||||||||||||||||
34.57 | 2,155 | 1.82 | — | * | 1.57 | .25 | 11 | |||||||||||||||||||||||
10.58 | 1,246 | 2.00 | (.46 | ) | 1.58 | (.03 | ) | 20 | ||||||||||||||||||||||
5.25 | 1,330 | 1.90 | (.58 | ) | 1.58 | (.26 | ) | 14 | ||||||||||||||||||||||
24.93 | 1,645 | 2.24 | (.90 | ) | 1.54 | (.20 | ) | 12 | ||||||||||||||||||||||
5.60 | 1,380 | 2.41 | (.67 | ) | 1.57 | .17 | 22 | |||||||||||||||||||||||
35.24 | 41,350 | 1.32 | .49 | 1.07 | .74 | 11 | ||||||||||||||||||||||||
11.13 | 20,198 | 1.52 | .02 | 1.08 | .47 | 20 | ||||||||||||||||||||||||
5.79 | 11,824 | 1.44 | (.12 | ) | 1.08 | .24 | 14 | |||||||||||||||||||||||
25.55 | 4,795 | 1.74 | (.40 | ) | 1.04 | .30 | 12 | |||||||||||||||||||||||
6.08 | 2,512 | 1.91 | (.29 | ) | 1.07 | .55 | 22 | |||||||||||||||||||||||
35.82 | 48,694 | .82 | 1.05 | .57 | 1.30 | 11 | ||||||||||||||||||||||||
11.79 | 33,733 | 1.00 | .55 | .58 | .97 | 20 | ||||||||||||||||||||||||
6.33 | 40,135 | .90 | .42 | .58 | .75 | 14 | ||||||||||||||||||||||||
26.22 | 47,179 | 1.24 | .10 | .54 | .80 | 12 | ||||||||||||||||||||||||
6.50 | 43,179 | 1.41 | .35 | .57 | 1.19 | 22 |
(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, 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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Round to less than .01%. |
See accompanying notes to financial statements.
Nuveen Investments | 121 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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 Equity Index Fund (“Equity Index”), Nuveen Mid Cap Index Fund (“Mid Cap Index”) and Nuveen Small Cap Index Fund (“Small Cap Index”) (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
Investment Adviser
On December 31, 2012, the Funds’ investment adviser converted from a Delaware corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisors, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Fund Information
Equity Index’s investment objective is to provide investment results that correspond to the performance of the Standard & Poor’s 500® Index (S&P 500 Index). Mid Cap Index’s investment objective is to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400® Index (S&P MidCap 400 Index). Small Cap Index’s investment objective is to provide investment results that correspond to the performance of the Russell® 2000 Index (Russell 2000 Index).
Under normal market conditions, each Fund generally invests at least 90% of its net assets, plus the amount of any borrowings for investment purposes, in common stocks included in its corresponding index. Each Fund also may invest in stock index futures contracts, options on stock indices and options on stock index futures (“derivatives”) on its corresponding index. Each Fund may make these investments to maintain the liquidity needed to meet redemption requests, to increase the level of Fund assets devoted to replicating the composition of its corresponding index and to reduce transaction costs.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
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 Operations.
122 | Nuveen Investments |
Dividends and Distributions to Shareholders
Dividends from net investment income are declared and distributed to shareholders annually for Mid Cap Index and Small Cap Index and quarterly for Equity Index. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Mid Cap Index and Small Cap Index receive distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. The actual character of distributions to Fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
Share Classes and Sales Charges
The Funds only issue Class A Shares for purchase by certain retirement plans and by qualifying clients of investment advisers, financial planners or other financial intermediaries that charge periodic or asset-based fees for their services. Class A Shares are offered to those investors at their net asset value per share with no up-front sales charge. Equity Index 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 incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class B Shares are subject to a contingent deferred sales charge (“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 service fee. 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, which presently only include 12b-1 distribution and service fees, are recorded to the specific class.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
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
Nuveen Investments | 123 |
Notes to Financial Statements (continued)
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. These securities may represent a transfer from a Level 1 to a Level 2 security.
Exchange traded funds in which the Funds may invest are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. These investment vehicles are generally classified as Level 1.
Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors. These securities are generally classified as Level 2. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
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 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). |
124 | Nuveen 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:
Equity Index | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 778,058,377 | $ | — | $ | — | $ | 778,058,377 | ||||||||
Investments Purchased with Collateral from Securities Lending | 76,321,947 | — | — | 76,321,947 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 8,391,658 | — | — | 8,391,658 | ||||||||||||
U.S. Government and Agency Obligations | — | 2,999,568 | — | 2,999,568 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 417,933 | — | — | 417,933 | ||||||||||||
Total | $ | 863,189,915 | $ | 2,999,568 | $ | — | $ | 866,189,483 | ||||||||
Mid Cap Index | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 568,122,457 | $ | — | $ | — | $ | 568,122,457 | ||||||||
Investments Purchased with Collateral from Securities Lending | 173,913,770 | — | — | 173,913,770 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 35,856,663 | — | — | 35,856,663 | ||||||||||||
U.S. Government & Agency Obligations | — | 1,999,712 | — | 1,999,712 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 1,470,179 | — | — | 1,470,179 | ||||||||||||
Total | $ | 779,363,069 | $ | 1,999,712 | $ | — | $ | 781,362,781 | ||||||||
Small Cap Index | Level 1 | Level 2 | Level 3*** | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 121,515,444 | $ | — | $ | — | $ | 121,515,444 | ||||||||
Exchange-Traded Funds | 13,776 | — | — | 13,776 | ||||||||||||
Common Stock Rights | 7,270 | — | — | **** | 7,270 | |||||||||||
Warrants | 840 | — | 2,675 | 3,515 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 29,409,661 | — | — | 29,409,661 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 10,672,790 | — | — | 10,672,790 | ||||||||||||
U.S. Government & Agency Obligations | — | 599,914 | — | 599,914 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 433,973 | — | — | 433,973 | ||||||||||||
Total | $ | 162,053,754 | $ | 599,914 | $ | 2,675 | $ | 162,656,343 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
*** | Refer to the Fund’s Portfolio of Investments for breakdown of securities classified as Level 3. |
**** | Level 3 securities have a market value of zero. |
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. |
Nuveen Investments | 125 |
Notes to Financial Statements (continued)
(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
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. Each Fund’s policy is to receive cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. The adequacy of the collateral is monitored on a daily basis. If the value of the securities on loan increases, such that the level of collateralization falls below 102%, additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
The Funds’ custodian serves as the securities lending agent for the Funds. Each Fund pays the custodian a fee based on the Fund’s proportional share of the custodian’s expense of operating its securities lending program. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities.
Income from securities lending, net of fees paid, is recognized on the Statement of Operations as “Securities lending income, net.” Securities lending fees paid by each Fund during the fiscal year ended October 31, 2013, were as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Security lending fees paid | $ | 10,656 | $ | 45,941 | $ | 43,660 |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Futures Contracts
Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If a Fund has unrealized appreciation the clearing broker would credit the investors account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit a Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
126 | Nuveen Investments |
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2013, each Fund continued to invest in index futures contracts to convert cash into the equivalent of its corresponding index holding in order to manage cash flow activity and minimize tracking error to the Fund’s benchmark index. Index futures contracts are used as a means to efficiently gain exposure to a broad base of equity securities.
The average notional amount of futures contracts outstanding during the fiscal year ended October 31, 2013, were as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Average notional amount of futures contracts outstanding* | 19,408,092 | 33,135,534 | 8,858,288 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
The following tables present the fair value of all futures contracts held by the Funds as of October 31, 2013, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Equity Index | ||||||||||||||
Equity | Futures contracts | Receivable for variation margin on futures contracts* | $ | 417,933 | Payable for variation margin on futures contracts* | $ | — | |||||||
Mid Cap Index | ||||||||||||||
Equity | Futures contracts | Receivable for variation margin on futures contracts* | $ | 1,470,179 | Payable for variation margin on futures contracts* | $ | — | |||||||
Small Cap Index | ||||||||||||||
Equity | Futures contracts | Receivable for variation margin on futures contracts* | $ | 433,973 | Payable for variation margin on futures contracts* | $ | — |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the deposits with brokers, if any, or the receivable or payable for variation margin on futures contracts presented on the Statement of Assets and Liabilities. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts during the fiscal year ended October 31, 2013, and the primary risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) | ||||||||||||
Equity Index | Equity | Futures contracts | $ | 5,449,087 | $ | 833,236 | ||||||||||
Mid Cap Index | Equity | Futures contracts | 5,999,365 | $ | 2,220,304 | |||||||||||
Small Cap Index | Equity | Futures contracts | 1,950,317 | $ | 687,238 |
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the
Nuveen Investments | 127 |
Notes to Financial Statements (continued)
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:
Equity Index | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,411,833 | $ | 33,787,712 | 1,565,578 | $ | 32,573,077 | ||||||||||
Class B — exchanges | 542 | 13,502 | 1,923 | 40,697 | ||||||||||||
Class C | 67,319 | 1,654,897 | 32,367 | 681,241 | ||||||||||||
Class R3 | 1,362,755 | 33,551,073 | 1,686,774 | 34,626,244 | ||||||||||||
Class I | 2,501,015 | 60,593,727 | 3,126,028 | 66,548,536 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 266,341 | 6,052,004 | 534,372 | 10,534,883 | ||||||||||||
Class B | 3,618 | 79,059 | 16,221 | 310,099 | ||||||||||||
Class C | 11,147 | 246,703 | 31,469 | 607,252 | ||||||||||||
Class R3 | 62,181 | 1,413,171 | 74,656 | 1,476,448 | ||||||||||||
Class I | 732,788 | 16,590,013 | 1,846,960 | 36,350,716 | ||||||||||||
6,419,539 | 153,981,861 | 8,916,348 | 183,749,193 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,334,700 | ) | (32,284,867 | ) | (1,231,749 | ) | (25,949,515 | ) | ||||||||
Class B | (46,307 | ) | (1,086,762 | ) | (99,634 | ) | (2,107,732 | ) | ||||||||
Class C | (43,416 | ) | (1,049,552 | ) | (86,922 | ) | (1,829,888 | ) | ||||||||
Class R3 | (648,981 | ) | (15,753,201 | ) | (915,878 | ) | (18,254,601 | ) | ||||||||
Class I | (8,520,280 | ) | (207,213,167 | ) | (7,940,588 | ) | (169,072,981 | ) | ||||||||
(10,593,684 | ) | (257,387,549 | ) | (10,274,771 | ) | (217,214,717 | ) | |||||||||
Net increase (decrease) | (4,174,145 | ) | $ | (103,405,688 | ) | (1,358,423 | ) | $ | (33,465,524 | ) | ||||||
Mid Cap Index | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 5,136,695 | $ | 79,951,117 | 4,786,260 | $ | 61,327,454 | ||||||||||
Class C | 292,876 | 4,467,780 | 184,279 | 2,337,668 | ||||||||||||
Class R3 | 3,979,743 | 61,218,130 | 4,393,557 | 56,768,086 | ||||||||||||
Class I | 4,112,940 | 63,918,979 | 2,969,633 | 39,492,829 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 314,110 | 4,274,744 | 232,338 | 2,749,626 | ||||||||||||
Class C | 13,313 | 174,797 | 9,633 | 110,394 | ||||||||||||
Class R3 | 333,843 | 4,488,924 | 226,691 | 2,645,480 | ||||||||||||
Class I | 324,941 | 4,438,707 | 324,664 | 3,870,284 | ||||||||||||
14,508,461 | 222,933,178 | 13,127,055 | 169,301,821 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,420,191 | ) | (37,454,741 | ) | (2,775,392 | ) | (35,406,321 | ) | ||||||||
Class C | (57,018 | ) | (880,513 | ) | (59,605 | ) | (772,002 | ) | ||||||||
Class R3 | (1,887,851 | ) | (28,959,655 | ) | (1,356,907 | ) | (17,055,217 | ) | ||||||||
Class I | (3,929,395 | ) | (61,060,111 | ) | (4,269,222 | ) | (55,602,149 | ) | ||||||||
(8,294,455 | ) | (128,355,020 | ) | (8,461,126 | ) | (108,835,689 | ) | |||||||||
Net increase (decrease) | 6,214,006 | $ | 94,578,158 | 4,665,929 | $ | 60,466,132 |
128 | Nuveen Investments |
Small Cap Index | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,323,081 | $ | 17,441,128 | 1,247,414 | $ | 13,644,265 | ||||||||||
Class C | 56,597 | 705,125 | 12,089 | 129,838 | ||||||||||||
Class R3 | 1,553,250 | 20,000,182 | 1,082,989 | 11,770,605 | ||||||||||||
Class I | 1,148,404 | 15,381,771 | 494,689 | 5,537,916 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 116,899 | 1,314,518 | 5,536 | 58,018 | ||||||||||||
Class C | 4,541 | 48,638 | — | — | ||||||||||||
Class R3 | 83,750 | 917,629 | 308 | 3,152 | ||||||||||||
Class I | 74,480 | 840,133 | 9,689 | 101,546 | ||||||||||||
4,361,002 | 56,649,124 | 2,852,714 | 31,245,340 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,124,307 | ) | (14,486,992 | ) | (643,542 | ) | (7,181,134 | ) | ||||||||
Class C | (22,987 | ) | (302,316 | ) | (32,384 | ) | (351,107 | ) | ||||||||
Class R3 | (593,535 | ) | (7,467,504 | ) | (460,033 | ) | (4,983,290 | ) | ||||||||
Class I | (885,982 | ) | (11,739,853 | ) | (1,440,057 | ) | (15,655,249 | ) | ||||||||
(2,626,811 | ) | (33,996,665 | ) | (2,576,016 | ) | (28,170,780 | ) | |||||||||
Net increase (decrease) | 1,734,191 | $ | 22,652,459 | 276,698 | $ | 3,074,560 |
Class B Shares that converted to Class A Shares (reflected as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal year ended October 31, 2013 and the fiscal year ended October 31, 2012, were as follows:
Fund | Year Ended 10/31/13 | Year Ended 10/31/12 | ||||||
Equity Index | 21,020 | 119,955 |
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending, short-term investments and derivative transactions) during the fiscal year ended October 31, 2013, were as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Purchases | $ | 14,768,016 | $ | 124,345,644 | $ | 32,491,288 | ||||||
Sales | 124,987,463 | 31,925,180 | 10,930,598 |
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 | 129 |
Notes to Financial Statements (continued)
As of October 31, 2013, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Cost of investments | $ | 428,259,505 | $ | 619,257,397 | $ | 126,238,556 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 466,022,747 | $ | 174,579,632 | $ | 42,822,110 | ||||||
Depreciation | (28,510,702 | ) | (13,944,427 | ) | (6,838,296 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 437,512,045 | $ | 160,635,205 | $ | 35,983,814 |
Permanent differences, primarily due to tax equalization, distribution reclass, REIT adjustments, foreign currency reclassifications and investments in passive foreign investment companies resulted in reclassifications among the Funds’ components of net assets as of October 31, 2013, the Funds‘ tax year end, as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Capital paid-in | $ | (80,442 | ) | $ | (121,976 | ) | $ | (16,039 | ) | |||
Undistributed (Over-distribution of) net investment income | 152,356 | 262,124 | 60,946 | |||||||||
Accumulated net realized gain (loss) | (71,914 | ) | (140,148 | ) | (44,907 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2013, the Funds’ tax year end, were as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Undistributed net ordinary income1 | $ | 4,501,394 | $ | 8,390,591 | $ | 2,374,553 | ||||||
Undistributed net long-term capital gains | 55,389,287 | 18,286,933 | 5,677,904 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2013 and October 31, 2012, was designated for purposes of the dividends paid deduction as follows:
2013 | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Distributions from net ordinary income1 | $ | 14,598,278 | $4,538,315 | $ | 648,672 | |||||||
Distributions from net long-term capital gains2 | 16,461,321 | 11,757,406 | 3,246,357 | |||||||||
2012 | Equity Index | Mid Cap Index | Small Cap Index | |||||||||
Distributions from net ordinary income1 | $ | 14,462,592 | $ | 1,386,875 | $ | 262,649 | ||||||
Distributions from net long-term capital gains | 51,723,954 | 11,165,318 | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
2 | The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2013. |
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.
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The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
Average Daily Net Assets | Equity Fund-Level Fee Rate | Mid Cap Fund-Level Fee Rate | Small Cap Fund-Level Fee Rate | |||||||||
For the first $125 million | .1000 | % | .1500 | % | .1500 | % | ||||||
For the next $125 million | .0875 | .1375 | .1375 | |||||||||
For the next $250 million | .0750 | .1250 | .1250 | |||||||||
For the next $500 million | .0625 | .1125 | .1125 | |||||||||
For the next $1 billion | .0500 | .1000 | .1000 | |||||||||
For net assets over $2 billion | .0250 | .0750 | .0750 |
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex level fee schedule for each Fund is as follows:
Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 |
* | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by 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 October 31, 2013, the complex-level fee rate for each Fund was as follows: |
Fund | Rate | |||
Equity Index | .2000 | % | ||
Mid Cap Index | .1803 | |||
Small Cap Index | .1836 |
The Adviser has contractually agreed to waive fees and/or reimburse expenses so that total annual Fund operating expenses, after waivers and/or expense reimbursements and excluding any acquired fund fees and expenses, do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Class A Shares | 0.62 | % | 0.75 | % | 0.83 | % | ||||||
Class B Shares | 1.37 | N/A | N/A | |||||||||
Class C Shares | 1.37 | 1.50 | 1.58 | |||||||||
Class R3 Shares | 0.87 | 1.00 | 1.08 | |||||||||
Class I Shares | 0.37 | 0.50 | 0.58 | |||||||||
Expiration Date | February 28, 2014 | February 28, 2014 | February 28, 2014 |
N/A | – Mid Cap Index and Small Cap Index do not offer Class B Shares. |
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
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Notes to Financial Statements (continued)
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.
Class A Shares are offered at their net asset value per share with no up-front sales charge. During the fiscal year ended October 31, 2013, Nuveen Securities, LLC (the “Distributor”), a wholly owned subsidiary of Nuveen, received 12b-1 service fees in Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
Commission advances (Unaudited) | $ | 9,219 | $ | 25,761 | $ | 5,673 |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class B and C Shares during the first year following a purchase were retained by the Distributor. During the fiscal year ended October 31, 2013, the Distributor retained such 12b-1 fees as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
12b-1 fees retained (Unaudited) | $ | 26,464 | $ | 18,703 | $ | 4,015 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2013, as follows:
Equity Index | Mid Cap Index | Small Cap Index | ||||||||||
CDSC retained (Unaudited) | $ | 1,241 | $ | 1,437 | $ | 1,176 |
8. New Accounting Pronouncements
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.
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Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 206 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 206 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 206 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 206 | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company; (2006-2013) retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 206 |
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Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Chairman of the Board of Trustees of Marian University (since 2010 as trustee, 2011 as Chairman); Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 206 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 206 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) and CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 206 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 206 | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 206 |
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Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Interested Board Members: | ||||||||
William Adams IV(2) 1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Senior Executive Vice President, Global Structured Products (since 2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | 135 | ||||
Thomas S. Schreier, Jr.(2) 1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | 135 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 206 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 206 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 206 | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (2010-2011), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Senior Vice President (since 2013), formerly, Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 206 |
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Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 206 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 206 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 206 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 206 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 206 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 206 | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 103 |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
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Annual Investment Management Agreement Approval Process (Unaudited)
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 “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (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 Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser 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 Adviser’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 Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’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 Adviser with questions and the Adviser 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 Adviser and the Sub-Adviser. 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 Adviser 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 Adviser 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 Adviser. 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 Adviser 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-adviser 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-Adviser’s investment teams in Minneapolis in September 2012, and its 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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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 Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’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 Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser 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-Adviser’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-Adviser 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 Adviser’s execution of its oversight responsibilities over the Sub-Adviser. 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 Adviser’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 Adviser 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 Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’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 Adviser’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 Adviser 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 Adviser, 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 Adviser 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 Adviser’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.
138 | Nuveen Investments |
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., generally 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. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
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 Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds 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 Adviser 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 each Fund had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratio 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.
Nuveen Investments | 139 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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 Nuveen Mid Cap Index Fund had a net management fee that was below its peer average and a net expense ratio (including fee waivers and expense reimbursements) that was in line with its peer average. In addition, the Independent Board Members observed that each of the other Funds had a net expense ratio slightly higher or higher than its respective peer average, but a net management fee below or in line with its respective peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser 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 Adviser are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Adviser 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 Adviser’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
140 | Nuveen Investments |
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 Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’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.
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 Adviser, 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-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’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.
Nuveen Investments | 141 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
142 | Nuveen Investments |
Notes
Nuveen Investments | 143 |
Notes
144 | Nuveen Investments |
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 distributions and capital gains, if any) over the time period being considered.
Dow Jones Industrial Average Index: A price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange. The 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 S&P 500® Index Objective Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper S&P 500® Index Objective Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Lipper Mid-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Lipper Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
MSCI EAFE Index: The MSCI (Morgan Stanley Capital International) EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Emerging Markets Index: An unmanaged index considered representative of stocks of developing countries. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Japan Index: A capitalization-weighted index, adjusted for free float. The index is designed to reflect the sectoral diversity of the Japanese equity markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Nuveen Investments | 145 |
Glossary of Terms Used in this Report (continued)
S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P MidCap 400® Index: An unmanaged, market value-weighted index of 400 mid-cap companies. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
146 | Nuveen Investments |
Fund | % of DRD | % of QDI | ||||||
Nuveen Equity Index Fund | 100.00 | % | 100.00 | % | ||||
Nuveen Mid Cap Index Fund | 50.00 | % | 50.00 | % | ||||
Nuveen Small Cap Index Fund | 90.00 | % | 91.00 | % |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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.
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The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program. |
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Serving Investors for Generations | ||||||||||||||
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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.
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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 $215 billion as of September 30, 2013. | ||||||||||||||
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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
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MAN-FIDX-1013D
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Mutual Funds |
Nuveen Equity Funds |
For investors seeking the potential for long-term capital appreciation. |
| Annual Report October 31, 2013 |
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Nuveen Dividend Value Fund | FFEIX | FAEBX | FFECX | FEISX | FFEIX | FAQIX | ||||||||||||
Nuveen Mid Cap Value Fund | FASEX | FAESX | FACSX | FMVSX | — | FSEIX | ||||||||||||
Nuveen Small Cap Value Fund | FSCAX | — | FSCVX | FSVSX | — | FSCCX |
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Life is Complex. | ||||||||||||
Nuveen makes things e-simple. | ||||||||||||
It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. | ||||||||||||
Free e-Reports right to your e-mail! | ||||||||||||
www.investordelivery.com If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account. | ||||||||||||
or | www.nuveen.com/accountaccess If you receive your Nuveen Fund distributions and statements directly from Nuveen.
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE | |||||||||||
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Nuveen Investments | 3 |
Chairman’s Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
December 23, 2013
4 | Nuveen Investments |
Nuveen Dividend Value Fund
Nuveen Mid Cap Value Fund
Nuveen Small Cap Value Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Cori Johnson, CFA, and Derek Sadowsky are the portfolio managers for the Nuveen Dividend Value Fund. Cori assumed portfolio management responsibilities in 1996. Derek became a co-manager on the Nuveen Dividend Value Fund management team in 2012. Gerald Bren, a third portfolio manager who had been a manager on this Fund since 1994, retired from Nuveen Asset Management on December 31, 2012.
Karen Bowie, CFA, and David Chalupnik, CFA, are co-portfolio managers of the Nuveen Mid Cap Value Fund. They assumed portfolio management responsibilities for the Fund in 2012.
Karen Bowie is also the portfolio manager for the Nuveen Small Cap Value Fund. She assumed portfolio management responsibilities for the Fund in 2006.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month reporting period ended October 31, 2013.
What factors affected the U.S. economy and the equity market during the twelve-month reporting period ended October 31, 2013?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013, the Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic
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.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Federal Reserve’s target of 6.5%. As of October 2013, the national unemployment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown if it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Federal Reserve’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility.
For much of the reporting period, low interest rates and a fairly benign macro environment caused U.S. investors to move out the risk spectrum, resulting in robust flows into U.S. equity funds. Leading U.S. stock market indexes, including the S&P 500® Index, the Dow Jones Industrial Average and the Russell 2000® Index, each hit all-time highs during the reporting period. The S&P 500® Index gained 27% during the reporting period. Sluggish global growth, muted global inflation and ongoing fiscal drag provided a backdrop for continued monetary policy actions outside the U.S. as well, which drove strong equity market advances globally. In Japan, newly elected Prime Minister Shinzo Abe articulated policies designed to reinvigorate Japan’s weak economy. Widespread optimism for his strategies led to a massive rally in the Japanese equity market, which was up 34% during this reporting period, according to MSCI. Elsewhere, the European Central Bank signaled an extended period of low rates while the U.K.’s Bank of England pursued its most aggressive monetary policy to date. Returns for developed markets outside the U.S. were very strong, as evidenced by the MSCI EAFE Index’s advance of 26% for the reporting period. In emerging market countries, which are more dependent on global growth and commodity prices, stocks significantly lagged developed markets with a 6% return during this reporting period, according to the MSCI Emerging Market Index.
6 | Nuveen Investments |
Nuveen Dividend Value Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed both the S&P 500® Index and the Lipper classification average, but underperformed the Russell 1000® Value Index over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
During the reporting period, we continued to implement the Fund’s disciplined investment strategy. We seek to achieve consistent, long-term outperformance with lower volatility by building and managing a portfolio diversified between sustainable and opportunistic holdings with a focus on what we believe are attractively valued companies with above average current income or dividend growth. We use an integrated, multi-perspective research and analysis approach that involves a team of portfolio managers, fundamental research analysts and quantitative analysts. The Fund’s holdings exhibit attractive valuations and identifiable catalysts that we believe will drive future stock appreciation. The Fund is also actively managed in an effort to minimize distributed capital gains and maximize after-tax returns using a typical investment horizon of at least two to three years. We adhere to portfolio guidelines to manage volatility and maintain diversification, generally selling a security if it no longer is expected to meet our dividend growth or price appreciation expectations or if we find a better alternative in the marketplace.
The Fund’s attribution during the reporting period benefited from favorable security selection in the consumer discretionary, financial and materials sectors as well as an underweight position in the utility sector. The consumer discretionary sector was the Fund’s greatest source of outperformance versus the benchmark due to strong stock selection in the specialty retail and leisure equipment industries. Best Buy Co. Inc. was the Fund’s strongest performing stock over the past twelve months as investors gained confidence in management’s strategy of reducing costs and increasing sales across the distribution channel. We believe Best Buy will continue to execute on its strategic initiatives to increase its “store within a store” format as it recently signed an agreement with Microsoft, which comes on the heels of a collaboration with Samsung earlier this year. The Fund’s position in Polaris Industries Inc. also benefited from improved sales of its off-road vehicles and snowmobiles, which has driven better margins and cash flows. We believe the introduction of the new Viking motorcycle and bolt-on acquisitions in emerging markets should continue to drive sales and margins for Polaris in the future. Starbucks Corporation was another strong contributor as it experienced increased penetration in emerging markets such as China. Additional growth should be driven by new food and beverage items along with the continued growth of the emerging market middle class.
The Fund benefited in the financial sector from positions in Bank of America Corp., State Street Corp. and Prudential Financial Inc. Bank of America advanced as the company benefited from the resolution of several litigation issues, the improving residential housing loan market and expectations that cost-cutting results would start positively impacting the bottom line. Also, the Fund’s overweight position in the banking firm State Street aided results as its shares rose steadily throughout the reporting period. State Street reported improving first-quarter profits as the strong stock market environment lifted the value of assets it oversees. Our holding of Prudential benefited from continued growth overseas and strong returns of capital to shareholders in the form of dividends and share buybacks. The Fund was also rewarded for its underweight position in the real estate investment trust (REIT) sector, which was negatively impacted by the rise in long-term interest rates. We believe expectations for the Fed to begin tapering in 2014 will continue to weigh on REITs given their high valuations, which has resulted in our maintaining the Fund’s underweight position.
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Portfolio Managers’ Comments (continued)
The rise in interest rates benefited the Fund’s underweight position in utilities, as higher rates reduced the spread between utility dividend yields and the 10-year bond yield. In addition, utilities as a whole are trading near the high end of their five-year historical price-to-book value making them look less attractive from a valuation perspective, especially in the face of potential higher long-term bond yields.
Finally within the materials sector, the Fund outperformed as a result of strong results at PPG Industries Inc. as the company continued to optimize its portfolio. PPG divested its commodity chlor-alkali business and further integrated its acquisition of Akzo Nobel’s U.S. paint business. We believe PPG will continue to benefit from a higher valuation multiple and growth as it focuses on becoming more of a pure-play coatings company.
Fund performance was hindered by stock selection in the health care, information technology and consumer staple sectors. In the health care sector, the Fund was negatively impacted by its holdings in Merck & Co. Inc. and AstraZeneca PLC, which both suffered due to a lack of new drug developments. We continue to believe the management of these firms will restructure these businesses, focusing on creating value through the disposal of non-core assets. The Fund’s underweight position in the health care provider industry was also a detractor during the reporting period. The industry received a boost from the passage of the Affordable Care Act as it will benefit from the millions of newly insured individuals entering the market. However, we continued to hold the Fund’s position in UnitedHealth Group Inc. as we believe the market is undervaluing its Optum health care technology division.
Within the technology sector, stock selection in the semiconductor sector negatively impacted results, as the Fund did not hold a couple of those strongest performers, Hewlett-Packard Co. and Micron Technology Inc. In addition, our position in Cisco Systems Inc. underperformed the overall sector as growth continued to lag due to lackluster enterprise spending globally. We continue to overweight the software and semiconductor industries as we believe they have more attractive risk/reward and the ability to further increase capital returns to shareholders.
Finally, in the consumer staples sector, the Fund’s holdings of Philip Morris International Inc. and Unilever PLC weighed on performance. In the case of Philip Morris, lower growth and high dividend yield worked against the stock as interest rates increased. Meanwhile, Unilever was negatively impacted by lower emerging market growth. However, with both of these holdings, we believe they will benefit from the growth of the emerging market middle class consumer. Current valuations do not reflect this potential growth in our view and we maintain the Fund’s positions in these holdings.
Nuveen Mid Cap Value Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed both the Russell Midcap® Value Index and the Lipper classification average during the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $699 million and $19.2 billion. During the reporting period, we continued to implement the Fund’s investment process of selecting mid-cap companies that we believed were undervalued relative to other companies in the same industry or market. These companies demonstrated improving fundamentals and exhibited a near-term catalyst that could close the gap between market value and our
8 | Nuveen Investments |
perception of fair value. We look for companies that generate strong free cash flow, which allows them to pay down debt, increase dividends, repurchase shares or engage in merger and acquisition activities. At the same time, we identify a short- or long-term catalyst we can track and monitor over time that could potentially propel each stock to realize its value. Generally, we sold a holding if the stock price reached its target, the company’s fundamentals or competitive position significantly deteriorated or if a better alternative existed in the marketplace.
During the stock market’s strong advance, the Fund delivered attractive absolute and relative returns, outperforming both the Russell Midcap® Value Index and its Lipper peers due to favorable security selection and several successful sector weights. The Fund’s outperformance was the result of strong stock selection in the consumer discretionary, financials, industrials and consumer staples sectors. The Fund also benefited from overweights in several of the more cyclical sectors that outperformed during the reporting period such as the consumer discretionary and industrials sectors. We maintained the Fund’s overweights to these cyclical areas due to improving U.S. economic prospects, Europe’s emergence from an 18-month recession and China’s stabilizing economic growth. In addition, underweight positions in the more bond-like and stable areas of the market, real estate investment trusts (REITs) and utilities, proved helpful. We believed stocks in these sectors were overvalued, as money flowed into them due to their defensive characteristics and yield. These sectors underperformed as investors digested better global economic growth data and Fed comments about reduced monetary stimulus in the United States. Stock selection only detracted in two sectors, technology and health care, while an approximately 1% weighting in cash also hindered returns in the strong bull market environment.
The consumer discretionary sector was the strongest area for the Fund on a relative basis as four of the Fund’s holdings outperformed. The Fund continued to benefit from its position in leading U.S. electronics retailer Best Buy Co. Inc., which is currently in the midst of a restructuring. The company’s turnaround story continued as it reported stronger-than-expected second quarter results and domestic sales increased slightly for the first time in quite a while. Another successful discretionary holding was Polaris Industries, which manufactures off-road and on-road commercial recreational vehicles. Polaris reported better-than-expected second quarter revenues, earnings and margins as the company gained market share in the off-road vehicle segment and maintained strength in its parts and accessories business. Also, boat and marine engine manufacturer Brunswick Corporation continued to produce strong results for the Fund. We had sold this stock after the company experienced a drop in demand during last spring’s cold and wet conditions; however, we bought back its shares after seeing more attractive data points for the firm and industry. Brunswick subsequently saw a resurgence in boat orders during the late summer and fall of 2013. In addition, specialty apparel company Express Inc. experienced strong results. We originally purchased this stock at an attractive valuation as the company struggled after moving away from some of its testing policies and marketing strategies. After management re-instated some of the marketing plans and testing policies, its stock price advanced again. We eventually sold the Fund’s position in Express as it reached our price target.
In the financial sector, the Fund continued to benefit from its underweight position in the REIT industry as more cyclical industries outperformed, coupled with favorable stock selection across a variety of industries. Fund results were enhanced by our ownership in Lincoln National Corp., a multiple-line insurance and investment management company. We originally purchased this stock when it was attractively valued, selling at below tangible book value. Lincoln National subsequently beat earnings expectations in both the second and third calendar quarters as the firm benefited from strong life insurance sales along with the increase in long-term interest rates. SLM Corp., a financial services company specializing in education loans, also performed well. The company announced its separation into two entities (education loan business and consumer banking business) which will create better transparency while allowing for enhanced valuation opportunities. In addition, CNO Financial Group was an outperformer for the Fund. The firm, which offers life insurance, annuities and supplemental health insurance products, benefited from its leverage to rising long-term
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Portfolio Managers’ Comments (continued)
interest rates coupled with its improving operating trends throughout the year and a favorable capital position. Finally, we saw strength from Unum Group, which is a large employee benefit and disability insurance provider. Unum’s results were aided by improving trends in its U.S., U.K. and long-term care business lines.
Strength in the industrials sector was driven by the Fund’s positions in Swift Transportation and TrueBlue Inc. Swift Transportation, the largest pure truckload carrier in the country, aided Fund results as the company reported strong earnings. The company also made a strategic acquisition that will position it as one of the largest players in the refrigerated truck market. We believe Swift will also experience better demand going forward as the U.S. economy continues to slowly improve. Also, temporary blue-collar staffing company TrueBlue showed solid results as the economy and housing industry improved and demand for its services increased. At the same time, TrueBlue has been implementing technology that helps it stay in constant contact with its temporary employees, thereby responding quickly to client needs. We sold out of the Fund’s position in TrueBlue toward the end of the period due to its valuation.
In the consumer staples sector, the Fund experienced strong results from Nu Skin Enterprises and Tyson Foods, Inc. Nu Skin, a leading developer and marketer of anti-aging skincare products and nutritional supplements, saw its stock price revalued upward as it reported stronger-than-expected earnings, revenues and margins and raised forward-looking guidance. The company is also benefiting from news of a new weight control product line that should launch around year end. We continue to own Nu Skin in the Fund’s portfolio. Also Tyson Foods, a leading producer of protein food products, saw its stock continually revalued higher as retail meat prices remained robust and the company’s largest input cost (grain) declined. These favorable trends led to higher margins and upward earnings revisions. We sold the Fund’s position in Tyson Foods after posting solid gains in the stock.
Several holdings in the technology and health care sectors were the only detractors during the reporting period. In one case, it was a company the Fund did not own, Micron Technology, Inc., which saw its stock price advance strongly during the reporting period. This semiconductor producer, which is a fairly large weight in the benchmark, benefited from the consolidation of competitors in the industry and a fire at a competitor’s facility that tightened up supply and improved pricing. We did purchase Micron Technology toward the end of this reporting period primarily because of the improvements in the supply, pricing and competitive landscape. The two other Fund holdings that detracted have since been sold. Internet advertising subscription company AOL Inc. was hurt by higher-than-expected costs to fix its local advertising division and to launch new products, in the midst of declining subscription revenues. The Fund also owned Motorola Solutions Inc. which provides mission critical communication infrastructure to governments and enterprises in the U.S. and Europe. Motorola experienced a greater-than-expected deterioration in its enterprise business as the company’s equipment continued to be replaced by tablets.
In the health care sector, medical device maker St. Jude Medical Inc. came under pressure after the company received an FDA warning letter about quality control concerns surrounding the production of a key component in its implantable cardiac defibrillators. We sold out of the stock in January because of the uncertainty surrounding a potential FDA recall. Subsequent to our sale, the FDA decided not to take action and St. Jude’s stock price marched steadily upward for the remainder of the reporting period. Also, the Fund did not own a position in another strongly performing medical device maker, Boston Scientific Corporation, because its products have been under pressure for years from the competition and due to concerns about its product pipeline. However, Boston Scientific’s stock advanced significantly as the result of a rash of new product introductions and additional products in the FDA pipeline. We purchased positions in both St. Jude and Boston Scientific toward the end of the reporting period. Finally, the Fund was hurt by its position in specialty pharmaceutical firm Impax Laboratories Inc. We originally purchased Impax Laboratories because its valuation was very attractive, it was generating significant free cash flow and it had a number of new drugs in the pipeline.
10 | Nuveen Investments |
Although it had already received an FDA warning letter about one of its manufacturing facilities, we believed this issue would be quickly resolved. Subsequent to our purchase, the company received a second FDA letter addressing new manufacturing issues, which further delayed the approval of one of its new drugs to treat Parkinson’s disease. We sold the Fund’s Impax Laboratories position in March.
Nuveen Small Cap Value Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed the Russell 2000® Value Index and performed in line with the Lipper classification average during the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations of less than $3 billion at the time of purchase. During the reporting period, we continued to focus on building a well-diversified portfolio of small-cap stocks from companies with strengthening balance sheets and free cash flow characteristics. We also continued to target companies with sound business models and strong competitive advantages that we believe can gain market share opportunistically in the current environment. We remained committed to our approach of investing in quality companies that are trading at a discount to both intrinsic and relative value metrics.
Small-cap stocks produced strong returns as the overall backdrop for the asset class remained favorable during the Fund’s reporting period. The best performing segments of the market continued to include those areas with the greatest exposure to the strengthening U.S. economy. Cyclical sectors within the small-cap value market led the way, including consumer discretionary, technology, industrials and energy sectors, while the more defensive sectors tied to the domestic economy, such as consumer staples and health care, also performed well. However, cyclical sectors with more commodity price sensitivity such as materials lagged due to concerns regarding the lack of financial stability in southern Europe and a slowing economy in China. As the debate concerning the Feds timing in tapering their stimulus policy intensified in June, the interest-rate sensitive sectors which included financials and utilities, weakened on a relative basis.
The Fund enjoyed widespread strength in stock selection in seven of the ten market sectors. In particular, we saw favorable results from our holdings in the financial, materials, technology, utilities, health care, consumer staples and energy sectors. As a testimony to an emphasis on intrinsic value in our stock selection process, the Fund enjoyed four announced take-outs during the reporting period. National Financial Partners Corp., a leading provider of life insurance, wealth management and advisory services, was acquired by a private equity company. Also, Belo Corporation, a North American-based television station owner/operator in 15 markets, announced it had agreed to be acquired by Gannett Inc., another leading North American based national media company looking to raise its mix of broadcasting assets relative to print. In addition, Cooper Tire & Rubber Company, a leading U.S.-based tire manufacturer, announced that it had agreed to be acquired for cash by a competitor in India, Apollo Tyres, which has the strategic intent to create a greater global footprint. Finally, Buckeye Technologies Inc., a leading producer of specialty fibers and nonwoven materials used in a variety of consumer and industrial goods, was acquired by privately held Georgia-Pacific LLC in August.
From a sector allocation basis, the Fund’s cyclical bias with overweights in the consumer discretionary and industrial sectors, while maintaining underweights in the utilities and financial sectors proved beneficial. The primary individual
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Portfolio Managers’ Comments (continued)
detractors during the period were found in the consumer discretionary, industrial and telecommunication services sectors. The Fund’s average 1.6% cash allocation was also a net drag in the very strong bull market.
The Fund experienced positive results from California-based East West Bancorp Inc. in the financial sector. The company continued to demonstrate above-average loan growth while showing improved credit quality from its earning assets throughout the year. In addition, East West Bancorp announced a potentially accretive acquisition in Texas, which will further expand its footprint. In the materials segment, Minerals Technologies Inc., a specialty minerals producer providing value-added products to paper, building materials, automotive and steel manufacturers on a global basis, continued to demonstrate margin expansion despite a low volume market. The company also turned the corner on organic revenue growth from its paper filler product due to growth from emerging markets in India and China, overcoming continued paper plant rationalizations in developed markets. Specialty semiconductor manufacturer Integrated Device Technology, Inc. also performed well in the technology sector as the company continued to benefit from the domestic build-out of LTE wireless infrastructure as well as gaining traction with new product adoptions into the mobile device segment. In addition, the company’s board of directors took an active stance to improve the overall operating and capital efficiency of the enterprise by effectuating new leadership.
Southwest Gas Corporation, a natural gas regulated utility serving primarily the Nevada and Arizona markets, was a relative outperformer in the fiscal year due to solid operating metrics resulting from improving organic growth of residential customers in its core markets. Southwest Gas also benefited from improved margins from its unregulated construction services subsidiary, serving other utilities for replacement and maintenance of natural gas distribution infrastructure. In the health care sector, MEDNAX Inc., a leading physician practice enterprise serving the neonatal and pediatric specialties while also providing anesthesia services, continued to execute on delivering consistent double-digit earnings growth via a combination of organic revenue growth and accretive acquisitions within the anesthesia services segment (a large and fragmented industry). In consumer staples, Michigan-based grocery retailer and distributor Spartan Stores Inc. continued to focus on improving margins via its private label business. Additionally, the company announced the transformational and accretive acquisition of Nash-Finch Company, a national grocery distributor that primarily serves military commissaries. A final company highlight over the fiscal year was Matrix Service Company, an energy-centric engineering and construction firm with operations in the United States and western Canada. Matrix Service’s management team continued to build out a strong backlog of projects tied to demand for energy and petrochemical infrastructure, while at the same time delivering improved margins from current project fulfillment.
Those holdings that detracted from performance included the global educational toy manufacturer LeapFrog Enterprises Inc. which underperformed due to cautious retail sales guidance entering the key fourth-quarter sales period coupled with a firmware update glitch for its new LeapPad Ultra WIFI product in the prior quarter. In industrials, Atlas Air Worldwide Holdings, Inc., a leading global provider of outsourced aircraft and aviation operating services, witnessed an overall demand decline from its key Chinese market as freight shifted to the more cost-efficient shipping methods in conjunction with a secular headwind to smaller, lighter products. We proactively reduced the Fund’s exposure to Atlas Air Worldwide last fiscal year and subsequently exited the name completely during this period as we await more favorable industry fundamentals. Finally, Premiere Global Services Inc. in the telecommunications services sector underperformed. This provider of audio and video collaborative solutions to a larger enterprise customer base on a global scale reduced its outlook for growth due to a slowdown in activity from its profitable European customer base as a result of the region coming out of crisis management mode. However, we remain constructive on the Fund’s investment in Premiere Global Services as the company’s management team continues to execute on its strategy to increase the business mix from its web-based video collaboration products.
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Mutual fund investing involves risk; principal loss is possible.
Nuveen Dividend Value Fund
Equity investments such as those held by the Fund, are subject to market risk and derivatives risk; dividends are not guaranteed. 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. In addition, the Fund invests in debt or fixed income securities that are subject to credit risk and interest rate risk. Below investment grade or high yield debt securities are subject to heightened credit risk, liquidity risk and potential for default.
Nuveen Mid Cap Value Fund
Equity investments such as those held by the Fund, are subject to market risk, derivatives risk, value stock risk, and common stock risk. Investments in mid-cap companies are subject to greater volatility. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.
Nuveen Small Cap Value Fund
Equity investments such as those held by the Fund, are subject to market risk, derivatives risk, value stock risk, and common stock risk. Investments in small-cap companies are subject to greater volatility. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.
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Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 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 waivers 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 Dividend Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 27.72% | 15.40% | 8.27% | |||||||||
Class A Shares at maximum Offering Price | 20.38% | 14.03% | 7.63% | |||||||||
Russell 1000® Value Index* | 28.29% | 14.06% | 7.81% | |||||||||
S&P 500® Index* | 27.18% | 15.17% | 7.46% | |||||||||
Lipper Equity Income Funds Classification Average* | 23.47% | 13.70% | 7.91% | |||||||||
Class B Shares w/o CDSC | 26.65% | 14.51% | �� | 7.45% | ||||||||
Class B Shares w/CDSC | 21.65% | 14.39% | 7.45% | |||||||||
Class C Shares | 26.95% | 14.52% | 7.45% | |||||||||
Class R3 Shares | 27.30% | 15.07% | 7.99% | |||||||||
Class I Shares | 27.96% | 15.68% | 8.53% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 18.52% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 22.25% | 11.09% | 8.31% | |||||||||
Class A Shares at maximum Offering Price | 15.26% | 9.77% | 7.67% | |||||||||
Class B Shares w/o CDSC | 21.32% | 10.26% | 7.50% | |||||||||
Class B Shares w/CDSC | 16.32% | 10.13% | 7.50% | |||||||||
Class C Shares | 21.42% | 10.27% | 7.51% | |||||||||
Class R3 Shares | 22.06% | 10.81% | 8.05% | |||||||||
Class I Shares | 22.61% | 11.39% | 8.59% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 14.03% |
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.
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Expense Ratios as of Most Recent Prospectus
Expense | ||||
Class A Shares | 1.15% | |||
Class B Shares | 1.90% | |||
Class C Shares | 1.90% | |||
Class R3 Shares | 1.40% | |||
Class R6 Shares | 0.85% | |||
Class I Shares | 0.90% |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | 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 2/28/13. |
Nuveen Investments | 17 |
Fund Performance and Expense Ratios (continued)
Nuveen Mid Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 34.93% | 14.93% | 8.57% | |||||||||
Class A Shares at maximum Offering Price | 27.15% | 13.58% | 7.93% | |||||||||
Russell Midcap® Value Index* | 33.45% | 18.85% | 10.62% | |||||||||
Lipper Mid-Cap Value Funds Classification Average* | 34.70% | 18.34% | 9.31% | |||||||||
Class B Shares w/o CDSC | 33.93% | 14.09% | 7.76% | |||||||||
Class B Shares w/CDSC | 28.93% | 13.97% | 7.76% | |||||||||
Class C Shares | 33.94% | 14.08% | 7.76% | |||||||||
Class R3 Shares | 34.63% | 14.64% | 8.32% | |||||||||
Class I Shares | 35.29% | 15.21% | 8.84% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 27.20% | 9.29% | 8.89% | |||||||||
Class A Shares at maximum Offering Price | 19.89% | 8.01% | 8.25% | |||||||||
Class B Shares w/o CDSC | 26.22% | 8.48% | 8.08% | |||||||||
Class B Shares w/CDSC | 21.22% | 8.34% | 8.08% | |||||||||
Class C Shares | 26.22% | 8.48% | 8.08% | |||||||||
Class R3 Shares | 26.86% | 9.02% | 8.64% | |||||||||
Class I Shares | 27.52% | 9.56% | 9.16% |
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Gross | Net | |||||||
Class A Shares | 1.47% | 1.34% | ||||||
Class B Shares | 2.22% | 2.09% | ||||||
Class C Shares | 2.22% | 2.09% | ||||||
Class R3 Shares | 1.72% | 1.59% | ||||||
Class I Shares | 1.22% | 1.09% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2014, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.34%, 2.09%, 2.09%, 1.59% and 1.09% for Class A, Class B, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 19 |
Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 34.98% | 16.32% | 8.99% | |||||||||
Class A Shares at maximum Offering Price | 27.22% | 14.94% | 8.34% | |||||||||
Russell 2000® Value Index* | 32.83% | 14.84% | 8.78% | |||||||||
Lipper Small-Cap Value Funds Classification Average* | 35.05% | 17.37% | 9.44% | |||||||||
Class C Shares | 33.94% | 15.45% | 8.18% | |||||||||
Class R3 Shares | 34.59% | 16.03% | 8.75% | |||||||||
Class I Shares | 35.34% | 16.59% | 9.25% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 28.42% | 11.07% | 9.47% | |||||||||
Class A Shares at maximum Offering Price | 21.08% | 9.77% | 8.83% | |||||||||
Class C Shares | 27.43% | 10.26% | 8.66% | |||||||||
Class R3 Shares | 28.09% | 10.82% | 9.24% | |||||||||
Class I Shares | 28.74% | 11.35% | 9.74% |
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 | Net | |||||||
Class A Shares | 1.57% | 1.46% | ||||||
Class C Shares | 2.33% | 2.21% | ||||||
Class R3 Shares | 1.82% | 1.71% | ||||||
Class I Shares | 1.33% | 1.21% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2015, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.45%, 2.20%, 1.70% and 1.20% for Class A, Class C, Class R3 and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 21 |
Holding Summaries October 31, 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 Dividend Value Fund
Fund Allocation1
Common Stocks | 99.0% | |||
Short-Term Investments | 0.9% | |||
Other2 | 0.1% |
Portfolio Composition1
Oil, Gas & Consumable Fuels | 12.2% | |||
Pharmaceuticals | 8.8% | |||
Diversified Financial Services | 6.2% | |||
Commercial Banks | 5.8% | |||
Electrical Equipment | 4.0% | |||
Industrial Conglomerates | 3.9% | |||
Chemicals | 3.8% | |||
Insurance | 3.6% | |||
Real Estate Investment Trust | 3.5% | |||
Capital Markets | 3.4% | |||
Specialty Retail | 2.9% | |||
Software | 2.8% | |||
Electric Utilities | 2.7% | |||
Household Products | 2.7% | |||
Leisure Equipment & Products | 2.7% | |||
Food Products | 2.6% | |||
Hotels, Restaurants & Leisure | 2.5% | |||
Semiconductors & Equipment | 2.4% | |||
Diversified Telecommunication Services | 2.2% | |||
Consumer Finance | 2.1% | |||
Short-Term Investments | 0.9% | |||
Other3 | 18.3% |
Top Five Common Stock Holdings1
General Electric Company | 3.9% | |||
Pfizer Inc. | 3.4% | |||
Procter & Gamble Company | 2.7% | |||
Chevron Corporation | 2.6% | |||
Citigroup Inc. | 2.4% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 2.1% of net assets. |
22 | Nuveen Investments |
Nuveen Mid Cap Value Fund
Fund Allocation1
Common Stocks | 97.8% | |||
Short-Term Investments | 0.6% | |||
Other2 | 1.6% |
Portfolio Composition1
Real Estate Investment Trust | 8.7% | |||
Oil, Gas & Consumable Fuels | 7.5% | |||
Commercial Banks | 7.2% | |||
Insurance | 6.7% | |||
Specialty Retail | 6.0% | |||
Software | 5.3% | |||
Household Durables | 4.0% | |||
Hotels, Restaurants & Leisure | 3.7% | |||
Capital Markets | 3.2% | |||
Electrical Equipment | 2.9% | |||
Health Care Equipment & Supplies | 2.8% | |||
Multiline Retail | 2.8% | |||
Leisure Equipment & Products | 2.3% | |||
Semiconductors & Equipment | 2.3% | |||
Chemicals | 2.2% | |||
Paper & Forest Products | 2.2% | |||
Health Care Providers & Services | 2.0% | |||
Auto Components | 1.9% | |||
Road & Rail | 1.9% | |||
Airlines | 1.8% | |||
Independent Power Producers & Energy Traders | 1.8% | |||
Consumer Finance | 1.7% | |||
Short-Term Investments | 0.6% | |||
Other3 | 18.5% |
Top Five Common Stock Holdings1
Invesco LTD | 2.0% | |||
Unum Group | 2.0% | |||
Staples, Inc. | 1.9% | |||
Lincoln National Corporation | 1.9% | |||
Host Hotels & Resorts Inc. | 1.8% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 1.7% of net assets. |
Nuveen Investments | 23 |
Holding Summaries October 31, 2013 (continued)
Nuveen Small Cap Value Fund
Fund Allocation1
Common Stocks | 97.4% | |||
Short-Term Investments | 1.8% | |||
Other2 | 0.8% |
Portfolio Composition1
Commercial Banks | 13.5% | |||
Real Estate Investment Trust | 7.7% | |||
Insurance | 5.9% | |||
Semiconductors & Equipment | 5.1% | |||
Oil, Gas & Consumable Fuels | 4.6% | |||
Specialty Retail | 4.6% | |||
Health Care Providers & Services | 4.1% | |||
Capital Markets | 3.6% | |||
Energy Equipment & Services | 3.0% | |||
Chemicals | 2.9% | |||
Communications Equipment | 2.7% | |||
Construction & Engineering | 2.7% | |||
Hotels, Restaurants & Leisure | 2.6% | |||
Electrical Equipment | 2.5% | |||
Machinery | 2.5% | |||
Household Durables | 2.4% | |||
Professional Services | 2.3% | |||
Thrifts & Mortgage Finance | 2.3% | |||
Electric Utilities | 2.2% | |||
Road & Rail | 2.1% | |||
Short-Term Investments | 1.8% | |||
Other3 | 18.9% |
Top Five Common Stock Holdings1
East West Bancorp Inc. | 1.8% | |||
Horace Mann Educators Corporation | 1.7% | |||
Altra Industrial Motion, Inc. | 1.7% | |||
Webster Financial Corporation | 1.7% | |||
American Equity Investment Life Holding Company | 1.6% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 2.1% of net assets. |
24 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of 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 Dividend Value 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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,108.80 | $ | 1,104.40 | $ | 1,104.50 | $ | 1,107.00 | $ | 1,110.00 | $ | 1,110.00 | $ | 1,019.56 | $ | 1,015.78 | $ | 1,015.78 | $ | 1,018.30 | $ | 1,021.22 | $ | 1,020.82 | ||||||||||||||||||||||||
Expenses Incurred During Period | $ | 5.95 | $ | 9.92 | $ | 9.92 | $ | 7.28 | $ | 4.20 | $ | 4.63 | $ | 5.70 | $ | 9.50 | $ | 9.50 | $ | 6.97 | $ | 4.02 | $ | 4.43 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.12%, 1.87%, 1.87%, 1.37%, 0.79% and 0.87% for Classes A, B, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Investments | 25 |
Expense Examples (continued)
Nuveen Mid Cap Value Fund
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||||||||
A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 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 | ||||||||||||||||||||
Ending Account Value (10/31/13) | $ | 1,146.00 | $ | 1,141.70 | $ | 1,142.00 | $ | 1,144.90 | $ | 1,147.60 | $ | 1,018.45 | $ | 1,014.67 | $ | 1,014.67 | $ | 1,017.19 | $ | 1,019.71 | ||||||||||||||||||||
Expenses Incurred During Period | $ | 7.25 | $ | 11.28 | $ | 11.28 | $ | 8.60 | $ | 5.90 | $ | 6.82 | $ | 10.61 | $ | 10.61 | $ | 8.08 | $ | 5.55 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.34%, 2.09%, 2.09%, 1.59% and 1.09% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Value 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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,152.80 | $ | 1,148.60 | $ | 1,150.70 | $ | 1,153.80 | $ | 1,017.95 | $ | 1,014.17 | $ | 1,016.69 | $ | 1,019.21 | ||||||||||||||||
Expenses Incurred During Period | $ | 7.81 | $ | 11.86 | $ | 9.16 | $ | 6.46 | $ | 7.32 | $ | 11.12 | $ | 8.59 | $ | 6.06 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.44%, 2.19%, 1.69% and 1.19% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
26 | Nuveen Investments |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Investment Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Dividend Value Fund, Nuveen Mid Cap Value Fund, and Nuveen Small Cap Value Fund (each a series of the Nuveen Investment Funds, Inc., hereinafter referred to as the “Funds”) at October 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of the Funds for the years ended October 31, 2011 and prior were audited by other independent auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
December 27, 2013
Nuveen Investments | 27 |
Portfolio of Investments October 31, 2013
Nuveen Dividend Value Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 108.5% | ||||||||||||||
COMMON STOCKS – 99.0% | ||||||||||||||
Aerospace & Defense – 1.7% | ||||||||||||||
136,993 | General Dynamics Corporation | $ | 11,867,704 | |||||||||||
166,075 | United Technologies Corporation | 17,645,469 | ||||||||||||
Total Aerospace & Defense | 29,513,173 | |||||||||||||
Capital Markets – 3.4% | ||||||||||||||
930,933 | Morgan Stanley | 26,745,705 | ||||||||||||
443,329 | State Street Corporation | 31,064,063 | ||||||||||||
Total Capital Markets | 57,809,768 | |||||||||||||
Chemicals – 3.8% | ||||||||||||||
440,368 | Dow Chemical Company | 17,381,325 | ||||||||||||
175,129 | LyondellBasell Industries NV | 13,064,623 | ||||||||||||
110,529 | PPG Industries, Inc. | 20,180,385 | ||||||||||||
110,344 | Praxair, Inc. | 13,761,000 | ||||||||||||
Total Chemicals | 64,387,333 | |||||||||||||
Commercial Banks – 5.8% | ||||||||||||||
281,990 | BankUnited Inc. | 8,676,832 | ||||||||||||
212,895 | Comerica Incorporated | 9,218,354 | ||||||||||||
214,320 | Community Bank System Inc. | 7,781,959 | ||||||||||||
919,811 | Fifth Third Bancorp. | 17,504,003 | ||||||||||||
149,297 | M&T Bank Corporation, (2) | 16,800,391 | ||||||||||||
132,855 | PNC Financial Services Group, Inc. | 9,768,828 | ||||||||||||
1,242,350 | Regions Financial Corporation | 11,963,831 | ||||||||||||
527,164 | SunTrust Banks, Inc. | 17,733,796 | ||||||||||||
Total Commercial Banks | 99,447,994 | |||||||||||||
Communications Equipment – 1.5% | ||||||||||||||
1,147,209 | Cisco Systems, Inc. | 25,812,203 | ||||||||||||
Computers & Peripherals – 1.4% | ||||||||||||||
44,240 | Apple, Inc. | 23,108,764 | ||||||||||||
Construction & Engineering – 0.3% | ||||||||||||||
158,313 | KBR Inc. | 5,468,131 | ||||||||||||
Consumer Finance – 2.1% | ||||||||||||||
302,885 | Capital One Financial Corporation | 20,799,113 | ||||||||||||
592,103 | SLM Corporation | 15,021,653 | ||||||||||||
Total Consumer Finance | 35,820,766 | |||||||||||||
Diversified Financial Services – 6.2% | ||||||||||||||
2,901,776 | Bank of America Corporation | 40,508,793 | ||||||||||||
838,152 | Citigroup Inc. | 40,885,055 | ||||||||||||
468,149 | JP Morgan Chase & Co. | 24,128,399 | ||||||||||||
Total Diversified Financial Services | 105,522,247 |
28 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Diversified Telecommunication Services – 2.2% | ||||||||||||||
447,724 | CenturyLink Inc., (2) | $ | 15,159,935 | |||||||||||
230,759 | Verizon Communications Inc. | 11,655,637 | ||||||||||||
1,181,247 | Windstream Holdings Inc., (2) | 10,099,662 | ||||||||||||
Total Diversified Telecommunication Services | 36,915,234 | |||||||||||||
Electric Utilities – 2.7% | ||||||||||||||
275,445 | Exelon Corporation, (2) | 7,861,200 | ||||||||||||
187,435 | Pinnacle West Capital Corporation | 10,501,983 | ||||||||||||
455,795 | PPL Corporation | 13,961,001 | ||||||||||||
445,283 | Westar Energy Inc., (2) | 14,075,396 | ||||||||||||
Total Electric Utilities | 46,399,580 | |||||||||||||
Electrical Equipment – 4.0% | ||||||||||||||
348,386 | Eaton PLC | 24,582,116 | ||||||||||||
223,593 | Emerson Electric Company | 14,974,023 | ||||||||||||
274,077 | Regal-Beloit Corporation | 20,098,066 | ||||||||||||
83,440 | Rockwell Automation, Inc., (2) | 9,212,610 | ||||||||||||
Total Electrical Equipment | 68,866,815 | |||||||||||||
Electronic Equipment & Instruments – 0.7% | ||||||||||||||
312,549 | Molex Inc. | 12,033,137 | ||||||||||||
Energy Equipment & Services – 0.2% | ||||||||||||||
125,667 | Exterran Partners, L.P., (2) | 3,900,704 | ||||||||||||
Food & Staples Retailing – 1.3% | ||||||||||||||
366,193 | Walgreen Co. | 21,693,273 | ||||||||||||
Food Products – 2.6% | ||||||||||||||
396,535 | ConAgra Foods, Inc. | 12,613,778 | ||||||||||||
508,915 | Mondelez International Inc. | 17,119,901 | ||||||||||||
368,025 | Unilever PLC, ADR | 14,617,953 | ||||||||||||
Total Food Products | 44,351,632 | |||||||||||||
Health Care Equipment & Supplies – 1.5% | ||||||||||||||
282,003 | Covidien PLC | 18,079,212 | ||||||||||||
108,550 | Stryker Corporation | 8,017,503 | ||||||||||||
Total Health Care Equipment & Supplies | 26,096,715 | |||||||||||||
Health Care Providers & Services – 1.3% | ||||||||||||||
310,553 | UnitedHealth Group Incorporated | 21,198,348 | ||||||||||||
Hotels, Restaurants & Leisure – 2.5% | ||||||||||||||
419,072 | Carnival Corporation, ADR, (2) | 14,520,845 | ||||||||||||
135,879 | McDonald’s Corporation | 13,115,041 | ||||||||||||
185,414 | Starbucks Corporation | 15,027,805 | ||||||||||||
Total Hotels, Restaurants & Leisure | 42,663,691 | |||||||||||||
Household Durables – 0.9% | ||||||||||||||
104,972 | Whirlpool Corporation | 15,326,962 | ||||||||||||
Household Products – 2.7% | ||||||||||||||
568,747 | Procter & Gamble Company | 45,926,320 | ||||||||||||
Industrial Conglomerates – 3.9% | ||||||||||||||
2,519,336 | General Electric Company | 65,855,443 |
Nuveen Investments | 29 |
Portfolio of Investments October 31, 2013
Nuveen Dividend Value Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Insurance – 3.6% | ||||||||||||||
270,357 | Lincoln National Corporation | $ | 12,276,911 | |||||||||||
471,258 | Old Republic International Corporation | 7,912,422 | ||||||||||||
294,558 | Prudential Financial, Inc. | 23,974,076 | ||||||||||||
524,862 | Unum Group | 16,659,120 | ||||||||||||
Total Insurance | 60,822,529 | |||||||||||||
Leisure Equipment & Products – 2.7% | ||||||||||||||
384,722 | Hasbro, Inc. | 19,870,891 | ||||||||||||
195,976 | Polaris Industries Inc., (2) | 25,663,057 | ||||||||||||
Total Leisure Equipment & Products | 45,533,948 | |||||||||||||
Machinery – 2.0% | ||||||||||||||
195,548 | Dover Corporation, (2) | 17,949,351 | ||||||||||||
449,020 | Xylem Inc., (2) | 15,491,190 | ||||||||||||
Total Machinery | 33,440,541 | |||||||||||||
Media – 0.8% | ||||||||||||||
418,560 | Cinemark Holdings Inc. | 13,732,954 | ||||||||||||
Multiline Retail – 1.0% | ||||||||||||||
312,540 | Kohl’s Corporation, (2) | 17,752,272 | ||||||||||||
Multi-Utilities – 0.9% | ||||||||||||||
542,791 | CMS Energy Corporation | 14,905,041 | ||||||||||||
Oil, Gas & Consumable Fuels – 12.2% | ||||||||||||||
282,321 | Anadarko Petroleum Corporation | 26,902,368 | ||||||||||||
374,509 | Chevron Corporation | 44,926,099 | ||||||||||||
159,749 | ConocoPhillips | 11,709,602 | ||||||||||||
308,875 | Devon Energy Corporation | 19,527,078 | ||||||||||||
397,884 | Enbridge Energy Partners LP | 12,043,949 | ||||||||||||
243,850 | Golar LNG, Limited, (2) | 9,054,151 | ||||||||||||
372,205 | Linn Energy LLC | 10,310,079 | ||||||||||||
370,307 | Marathon Oil Corporation | 13,057,025 | ||||||||||||
175,449 | Occidental Petroleum Corporation | 16,857,140 | ||||||||||||
250,727 | Royal Dutch Shell PLC, Class A | 16,713,462 | ||||||||||||
519,365 | Spectra Energy Corporation | 18,473,812 | ||||||||||||
165,957 | Williams Partners LP | 8,533,509 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 208,108,274 | |||||||||||||
Pharmaceuticals – 8.8% | ||||||||||||||
252,551 | AstraZeneca PLC, Sponsored ADR, (2) | 13,349,846 | ||||||||||||
404,998 | GlaxoSmithKline PLC | 21,315,045 | ||||||||||||
281,739 | Johnson & Johnson | 26,091,849 | ||||||||||||
711,232 | Merck & Company Inc. | 32,069,451 | ||||||||||||
1,867,471 | Pfizer Inc. | 57,294,009 | ||||||||||||
Total Pharmaceuticals | 150,120,200 | |||||||||||||
Real Estate Investment Trust – 3.5% | ||||||||||||||
176,363 | Liberty Property Trust | 6,558,940 | ||||||||||||
1,523,531 | MFA Mortgage Investments, Inc. | 11,289,365 | ||||||||||||
110,810 | Mid-America Apartment Communities | 7,357,784 | ||||||||||||
223,270 | National Retail Properties, Inc. | 7,680,488 |
30 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||
555,826 | Redwood Trust Inc., (2) | $ | 9,738,072 | |||||||||||
638,870 | Starwood Property Trust Inc. | 16,412,570 | ||||||||||||
Total Real Estate Investment Trust | 59,037,219 | |||||||||||||
Semiconductors & Equipment – 2.4% | ||||||||||||||
894,608 | Intel Corporation | 21,855,273 | ||||||||||||
342,122 | Maxim Integrated Products, Inc. | 10,161,023 | ||||||||||||
201,844 | Texas Instruments Incorporated | 8,493,596 | ||||||||||||
Total Semiconductors & Equipment | 40,509,892 | |||||||||||||
Software – 2.8% | ||||||||||||||
557,934 | CA Inc. | 17,719,984 | ||||||||||||
450,575 | Microsoft Corporation | 15,927,826 | ||||||||||||
640,624 | Symantec Corporation | 14,567,790 | ||||||||||||
Total Software | 48,215,600 | |||||||||||||
Specialty Retail – 2.9% | ||||||||||||||
439,703 | Best Buy Co., Inc. | 18,819,288 | ||||||||||||
292,251 | Lowe’s Companies, Inc. | 14,548,255 | ||||||||||||
1,039,265 | Staples, Inc., (2) | 16,752,952 | ||||||||||||
Total Specialty Retail | 50,120,495 | |||||||||||||
Tobacco – 1.7% | ||||||||||||||
398,467 | Altria Group, Inc. | 14,834,926 | ||||||||||||
154,117 | Philip Morris International | 13,734,907 | ||||||||||||
Total Tobacco | 28,569,833 | |||||||||||||
Wireless Telecommunication Services – 1.0% | ||||||||||||||
436,992 | Vodafone Group PLC, Sponsored ADR | 16,090,045 | ||||||||||||
Total Common Stocks (cost $1,189,363,130) | 1,685,077,076 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 9.5% | ||||||||||||||
Money Market Funds – 9.5% | ||||||||||||||
162,251,877 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (3), (4) | $ | 162,251,877 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $162,251,877) | 162,251,877 | |||||||||||||
Total Long-Term Investments (cost $1,351,615,007) | 1,847,328,953 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.9% | ||||||||||||||
Money Market Funds – 0.9% | ||||||||||||||
16,040,883 | First American Treasury Obligations Fund, Class Z, 0.000%, (3) | $ | 16,040,883 | |||||||||||
|
| |||||||||||||
Total Short-Term Investments (cost $16,040,883) | 16,040,883 | |||||||||||||
Total Investments (cost $1,367,655,890) – 109.4% | 1,863,369,836 | |||||||||||||
Other Assets Less Liabilities – (9.4)% | (160,520,123 | ) | ||||||||||||
Net Assets – 100% | $ | 1,702,849,713 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan as of the end of the reporting period was $156,887,168. |
(3) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(4) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
Nuveen Investments | 31 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Value Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 127.3% | ||||||||||||||
COMMON STOCKS – 97.8% | ||||||||||||||
Airlines – 1.8% | ||||||||||||||
97,436 | Delta Air Lines, Inc., (2) | $ | 2,570,362 | |||||||||||
Auto Components – 1.9% | ||||||||||||||
14,664 | BorgWarner Inc., (2) | 1,512,298 | ||||||||||||
65,474 | Dana Holding Corporation, (2) | 1,283,290 | ||||||||||||
Total Auto Components | 2,795,588 | |||||||||||||
Building Products – 1.2% | ||||||||||||||
33,732 | Smith AO Corporation, (2) | 1,742,258 | ||||||||||||
Capital Markets – 3.2% | ||||||||||||||
85,930 | Invesco LTD | 2,900,138 | ||||||||||||
38,399 | Raymond James Financial Inc. | 1,752,914 | ||||||||||||
Total Capital Markets | 4,653,052 | |||||||||||||
Chemicals – 2.2% | ||||||||||||||
61,468 | Chemtura Corporation, (3) | 1,505,966 | ||||||||||||
18,242 | WR Grace & Company, (3) | 1,672,062 | ||||||||||||
Total Chemicals | 3,178,028 | |||||||||||||
Commercial Banks – 7.2% | ||||||||||||||
64,604 | East West Bancorp Inc. | 2,176,509 | ||||||||||||
132,007 | Fifth Third Bancorp. | 2,512,093 | ||||||||||||
185,360 | Regions Financial Corporation | 1,785,017 | ||||||||||||
43,886 | Wintrust Financial Corporation, (2) | 1,909,480 | ||||||||||||
66,513 | Zions Bancorporation, (2) | 1,886,974 | ||||||||||||
Total Commercial Banks | 10,270,073 | |||||||||||||
Commercial Services & Supplies – 1.2% | ||||||||||||||
83,085 | Pitney Bowes Inc., (2) | 1,773,034 | ||||||||||||
Communications Equipment – 0.7% | ||||||||||||||
21,934 | Plantronics Inc. | 941,846 | ||||||||||||
Computers & Peripherals – 1.4% | ||||||||||||||
29,214 | Western Digital Corporation | 2,034,171 | ||||||||||||
Construction & Engineering – 1.2% | ||||||||||||||
47,998 | KBR Inc. | 1,657,851 | ||||||||||||
Consumer Finance – 1.7% | ||||||||||||||
96,861 | SLM Corporation | 2,457,364 | ||||||||||||
Diversified Consumer Services – 1.0% | ||||||||||||||
22,347 | Outerwall Inc., (2), (3) | 1,452,108 | ||||||||||||
Electrical Equipment – 2.9% | ||||||||||||||
33,950 | Regal-Beloit Corporation, (2) | 2,489,554 | ||||||||||||
15,695 | Rockwell Automation, Inc., (2) | 1,732,885 | ||||||||||||
Total Electrical Equipment | 4,222,439 |
32 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Health Care Equipment & Supplies – 2.8% | ||||||||||||||
131,487 | Boston Scientific Corporation, (3) | $ | 1,537,083 | |||||||||||
42,796 | Saint Jude Medical Inc. | 2,456,062 | ||||||||||||
Total Health Care Equipment & Supplies | 3,993,145 | |||||||||||||
Health Care Providers & Services – 2.0% | ||||||||||||||
15,609 | CIGNA Corporation | 1,201,581 | ||||||||||||
20,700 | Universal Health Services, Inc., Class B | 1,667,592 | ||||||||||||
Total Health Care Providers & Services | 2,869,173 | |||||||||||||
Hotels, Restaurants & Leisure – 3.7% | ||||||||||||||
31,001 | Jack in the Box Inc., Term Loan, (3) | 1,261,121 | ||||||||||||
60,560 | Royal Caribbean Cruises Limited, (2) | 2,545,942 | ||||||||||||
8,756 | Wynn Resorts Ltd, (2) | 1,455,685 | ||||||||||||
Total Hotels, Restaurants & Leisure | 5,262,748 | |||||||||||||
Household Durables – 4.0% | ||||||||||||||
29,786 | Jarden Corporation, (3) | 1,648,953 | ||||||||||||
14,851 | Mohawk Industries Inc., (3) | 1,966,569 | ||||||||||||
14,168 | Whirlpool Corporation | 2,068,670 | ||||||||||||
Total Household Durables | 5,684,192 | |||||||||||||
Independent Power Producers & Energy Traders – 1.8% | ||||||||||||||
90,448 | NRG Energy Inc., (2) | 2,580,481 | ||||||||||||
Industrial Conglomerates – 1.4% | ||||||||||||||
27,727 | Carlisle Companies Inc. | 2,015,198 | ||||||||||||
Insurance – 6.7% | ||||||||||||||
119,182 | CNO Financial Group Inc. | 1,856,856 | ||||||||||||
38,781 | Endurance Specialty Holdings Limited, (2) | 2,144,201 | ||||||||||||
61,333 | Lincoln National Corporation | 2,785,132 | ||||||||||||
91,250 | Unum Group | 2,896,275 | ||||||||||||
Total Insurance | 9,682,464 | |||||||||||||
Leisure Equipment & Products – 2.3% | ||||||||||||||
41,344 | Brunswick Corporation | 1,865,855 | ||||||||||||
10,674 | Polaris Industries Inc., (2) | 1,397,760 | ||||||||||||
Total Leisure Equipment & Products | 3,263,615 | |||||||||||||
Life Sciences Tools & Services – 1.6% | ||||||||||||||
44,294 | Agilent Technologies, Inc. | 2,248,363 | ||||||||||||
Machinery – 1.3% | ||||||||||||||
40,082 | Oshkosh Truck Corporation, (3) | 1,907,502 | ||||||||||||
Media – 1.6% | ||||||||||||||
15,007 | Liberty Media Corporation, (3) | 2,294,720 | ||||||||||||
Multiline Retail – 2.8% | ||||||||||||||
42,542 | Kohl’s Corporation, (2) | 2,416,386 | ||||||||||||
34,992 | Macy’s, Inc. | 1,613,481 | ||||||||||||
Total Multiline Retail | 4,029,867 | |||||||||||||
Office Electronics – 1.4% | ||||||||||||||
197,417 | Xerox Corporation | 1,962,325 |
Nuveen Investments | 33 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Value Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Oil, Gas & Consumable Fuels – 7.5% | ||||||||||||||
32,567 | Cobalt International Energy, Inc., (3) | $ | 755,880 | |||||||||||
50,743 | Delek US Holdings Inc. | 1,296,484 | ||||||||||||
23,058 | Gulfport Energy Corporation, (2), (3) | 1,353,274 | ||||||||||||
57,150 | Newfield Exploration Company, (3) | 1,740,218 | ||||||||||||
27,081 | Noble Energy, Inc. | 2,029,178 | ||||||||||||
87,907 | Peabody Energy Corporation, (2) | 1,712,428 | ||||||||||||
28,866 | Whiting Petroleum Corporation, (3) | 1,930,847 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 10,818,309 | |||||||||||||
Paper & Forest Products – 2.2% | ||||||||||||||
19,596 | Domtar Corporation | 1,659,977 | ||||||||||||
32,582 | International Paper Company | 1,453,483 | ||||||||||||
Total Paper & Forest Products | 3,113,460 | |||||||||||||
Personal Products – 0.9% | ||||||||||||||
10,818 | Nu Skin Enterprises, Inc., Class A | 1,264,949 | ||||||||||||
Real Estate Investment Trust – 8.7% | ||||||||||||||
137,883 | Developers Diversified Realty Corporation, (2) | 2,337,117 | ||||||||||||
140,383 | Host Hotels & Resorts Inc., (2) | 2,604,104 | ||||||||||||
91,135 | Kimco Realty Corporation, (2) | 1,957,580 | ||||||||||||
292,772 | MFA Mortgage Investments, Inc. | 2,169,441 | ||||||||||||
19,837 | SL Green Realty Corporation, (2) | 1,875,985 | ||||||||||||
61,791 | Starwood Property Trust Inc. | 1,587,411 | ||||||||||||
Total Real Estate Investment Trust | 12,531,638 | |||||||||||||
Road & Rail – 1.9% | ||||||||||||||
35,375 | Con-Way, Inc. | 1,457,450 | ||||||||||||
55,422 | Swift Transportation Company, (2), (3) | 1,207,645 | ||||||||||||
Total Road & Rail | 2,665,095 | |||||||||||||
Semiconductors & Equipment – 2.3% | ||||||||||||||
142,547 | Micron Technology, Inc., (3) | 2,520,231 | ||||||||||||
27,697 | Semtech Corporation, (3) | 861,654 | ||||||||||||
Total Semiconductors & Equipment | 3,381,885 | |||||||||||||
Software – 5.3% | ||||||||||||||
47,046 | Autodesk, Inc., (3) | 1,877,606 | ||||||||||||
75,216 | CA Inc. | 2,388,860 | ||||||||||||
78,419 | Symantec Corporation | 1,783,248 | ||||||||||||
42,083 | Synopsys Inc., (3) | 1,533,925 | ||||||||||||
Total Software | 7,583,639 | |||||||||||||
Specialty Retail – 6.0% | ||||||||||||||
62,358 | Abercrombie & Fitch Co., Class A, (2) | 2,337,178 | ||||||||||||
46,080 | Best Buy Co., Inc. | 1,972,224 | ||||||||||||
45,706 | Foot Locker, Inc., (2) | 1,585,998 | ||||||||||||
173,656 | Staples, Inc., (2) | 2,799,335 | ||||||||||||
Total Specialty Retail | 8,694,735 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.0% | ||||||||||||||
20,188 | Deckers Outdoor Corporation, (2), (3) | 1,389,540 |
34 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Thrifts & Mortgage Finance – 1.0% | ||||||||||||||
90,793 | Everbank Financial Corporation | $ | 1,372,790 | |||||||||||
Total Common Stocks (cost $116,826,028) | 140,358,007 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 29.5% | ||||||||||||||
Money Market Funds – 29.5% | ||||||||||||||
42,313,911 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 42,313,911 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $42,313,911) | 42,313,911 | |||||||||||||
Total Long-Term Investments (cost $159,139,939) | 182,671,918 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.6% | ||||||||||||||
Money Market Funds – 0.6% | ||||||||||||||
920,497 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 920,497 | |||||||||||
|
| |||||||||||||
Total Short-Term Investments (cost $920,497) | 920,497 | |||||||||||||
Total Investments (cost $160,060,436) – 127.9% | 183,592,415 | |||||||||||||
Other Assets Less Liabilities – (27.9)% | (40,006,687 | ) | ||||||||||||
Net Assets – 100% | $ | 143,585,728 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan as of the end of the reporting period was $40,840,362. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
See accompanying notes to financial statements.
Nuveen Investments | 35 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Value Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 126.0% | ||||||||||||||
COMMON STOCKS – 97.4% | ||||||||||||||
Aerospace & Defense – 1.5% | ||||||||||||||
21,500 | Triumph Group Inc., (2) | $ | 1,540,475 | |||||||||||
Auto Components – 1.3% | ||||||||||||||
67,920 | Dana Holding Corporation, (2) | 1,331,232 | ||||||||||||
Capital Markets – 3.6% | ||||||||||||||
83,121 | JMP Group Inc. | 532,806 | ||||||||||||
64,101 | Manning & Napier Inc. | 1,064,077 | ||||||||||||
86,721 | New Mountain Finance Corporation | 1,229,704 | ||||||||||||
88,052 | Pennantpark Investment Corporation | 991,466 | ||||||||||||
Total Capital Markets | 3,818,053 | |||||||||||||
Chemicals – 2.9% | ||||||||||||||
64,000 | Chemtura Corporation, (3) | 1,568,000 | ||||||||||||
26,000 | Minerals Technologies Inc., (2) | 1,472,380 | ||||||||||||
Total Chemicals | 3,040,380 | |||||||||||||
Commercial Banks – 13.5% | ||||||||||||||
42,000 | Banner Corporation, (2) | 1,606,920 | ||||||||||||
96,500 | Customers Bancorp Inc., (2), (3) | 1,616,375 | ||||||||||||
56,000 | East West Bancorp Inc., (2) | 1,886,639 | ||||||||||||
39,000 | Flushing Financial Corporation, (2) | 783,510 | ||||||||||||
54,500 | Heartland Financial USA, Inc. | 1,443,705 | ||||||||||||
51,000 | Renasant Corporation | 1,462,680 | ||||||||||||
12,500 | SVB Financial Group, (2), (3) | 1,197,250 | ||||||||||||
16,225 | Texas Capital BancShares, Inc., (2), (3) | 844,511 | ||||||||||||
64,131 | Webster Financial Corporation | 1,788,614 | ||||||||||||
36,000 | Wintrust Financial Corporation, (2) | 1,566,360 | ||||||||||||
Total Commercial Banks | 14,196,564 | |||||||||||||
Commercial Services & Supplies – 0.9% | ||||||||||||||
166,200 | Acco Brands Corporation, (2), (3) | 972,270 | ||||||||||||
Communications Equipment – 2.7% | ||||||||||||||
77,000 | Applied Optoelectronics Inc., (3) | 976,360 | ||||||||||||
53,700 | Infinera Corporation, (2), (3) | 548,277 | ||||||||||||
30,750 | Plantronics Inc. | 1,320,405 | ||||||||||||
Total Communications Equipment | 2,845,042 | |||||||||||||
Computers & Peripherals – 0.5% | ||||||||||||||
24,000 | Cray, Inc., (2), (3) | 536,640 | ||||||||||||
Construction & Engineering – 2.7% | ||||||||||||||
44,325 | Emcor Group Inc. | 1,642,685 | ||||||||||||
45,036 | MYR Group Inc., (3) | 1,191,202 | ||||||||||||
Total Construction & Engineering | 2,833,887 |
36 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Diversified Financial Services – 1.2% | ||||||||||||||
51,500 | PHH Corporation, (3) | $ | 1,238,575 | |||||||||||
Diversified Telecommunication Services – 1.1% | ||||||||||||||
125,000 | Premiere Global Services, Inc., (3) | 1,126,250 | ||||||||||||
Electric Utilities – 2.2% | ||||||||||||||
22,626 | El Paso Electric Company | 795,756 | ||||||||||||
39,500 | UIL Holdings Corporation | 1,521,540 | ||||||||||||
Total Electric Utilities | 2,317,296 | |||||||||||||
Electrical Equipment – 2.5% | ||||||||||||||
38,287 | Babcock & Wilcox Company | 1,233,224 | ||||||||||||
18,700 | Regal-Beloit Corporation, (2) | 1,371,271 | ||||||||||||
Total Electrical Equipment | 2,604,495 | |||||||||||||
Electronic Equipment & Instruments – 2.0% | ||||||||||||||
16,000 | SYNNEX Corporation, (3) | 980,800 | ||||||||||||
91,500 | Vishay Intertechnology Inc., (2), (3) | 1,122,705 | ||||||||||||
Total Electronic Equipment & Instruments | 2,103,505 | |||||||||||||
Energy Equipment & Services – 3.0% | ||||||||||||||
48,000 | Basic Energy Services, Inc., (2), (3) | 704,160 | ||||||||||||
69,445 | Matrix Service Company, (3) | 1,443,762 | ||||||||||||
42,182 | Patterson-UTI Energy, Inc. | 1,023,335 | ||||||||||||
Total Energy Equipment & Services | 3,171,257 | |||||||||||||
Food & Staples Retailing – 1.0% | ||||||||||||||
46,000 | Spartan Stores, Inc., (2) | 1,082,380 | ||||||||||||
Gas Utilities – 1.2% | ||||||||||||||
22,993 | Southwest Gas Corporation, (2) | 1,247,600 | ||||||||||||
Health Care Equipment & Supplies – 1.0% | ||||||||||||||
28,000 | Conmed Corporation, (2) | 1,015,560 | ||||||||||||
Health Care Providers & Services – 4.1% | ||||||||||||||
44,119 | Hanger Orthopedic Group Inc., (2), (3) | 1,619,167 | ||||||||||||
14,500 | Medax Inc., (3) | 1,580,790 | ||||||||||||
35,895 | US Physical Therapy, Inc. | 1,145,768 | ||||||||||||
Total Health Care Providers & Services | 4,345,725 | |||||||||||||
Hotels, Restaurants & Leisure – 2.6% | ||||||||||||||
26,077 | Bob Evans Farms, (2) | 1,488,736 | ||||||||||||
71,000 | Einstein Noah Restaurant Group | 1,266,640 | ||||||||||||
Total Hotels, Restaurants & Leisure | 2,755,376 | |||||||||||||
Household Durables – 2.4% | ||||||||||||||
65,000 | La Z Boy Inc. | 1,500,200 | ||||||||||||
67,100 | Tri Pointe Homes, Incorporated, (2), (3) | 1,068,232 | ||||||||||||
Total Household Durables | 2,568,432 | |||||||||||||
Insurance – 5.9% | ||||||||||||||
82,178 | American Equity Investment Life Holding Company, (2) | 1,712,590 | ||||||||||||
106,938 | CNO Financial Group Inc. | 1,666,094 | ||||||||||||
19,000 | Endurance Specialty Holdings Limited, (2) | 1,050,510 | ||||||||||||
65,735 | Horace Mann Educators Corporation | 1,820,860 | ||||||||||||
Total Insurance | 6,250,054 |
Nuveen Investments | 37 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Value Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Internet Software & Services – 2.0% | ||||||||||||||
77,000 | Dice Holdings Inc., (3) | $ | 568,260 | |||||||||||
86,785 | Perficient, Inc., (3) | 1,569,941 | ||||||||||||
Total Internet Software & Services | 2,138,201 | |||||||||||||
Leisure Equipment & Products – 0.7% | ||||||||||||||
91,000 | LeapFrog Enterprises Inc., (2), (3) | 778,960 | ||||||||||||
Machinery – 2.5% | ||||||||||||||
21,884 | Actuant Corporation | 821,963 | ||||||||||||
59,000 | Altra Industrial Motion, Inc. | 1,791,830 | ||||||||||||
Total Machinery | 2,613,793 | |||||||||||||
Metals & Mining – 1.7% | ||||||||||||||
33,492 | Commercial Metals Company | 614,913 | ||||||||||||
18,150 | Kaiser Aluminum Corporation | 1,224,218 | ||||||||||||
Total Metals & Mining | 1,839,131 | |||||||||||||
Oil, Gas & Consumable Fuels – 4.6% | ||||||||||||||
46,369 | Bill Barrett Corporation, (2), (3) | 1,283,030 | ||||||||||||
20,000 | Delek US Holdings Inc. | 511,000 | ||||||||||||
57,000 | Energy XXI Limited Bermuda | 1,656,420 | ||||||||||||
23,000 | Rosetta Resources, Inc., (2), (3) | 1,378,620 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 4,829,070 | |||||||||||||
Personal Products – 0.9% | ||||||||||||||
26,000 | Inter Parfums, Inc. | 914,160 | ||||||||||||
Professional Services – 2.3% | ||||||||||||||
70,000 | Korn Ferry International, (3) | 1,666,000 | ||||||||||||
29,000 | TrueBlue Inc., (3) | 716,300 | ||||||||||||
Total Professional Services | 2,382,300 | |||||||||||||
Real Estate Investment Trust – 7.7% | ||||||||||||||
78,000 | Associated Estates Realty Corp., (2) | 1,196,520 | ||||||||||||
92,000 | Brandywine Realty Trust, (2) | 1,309,160 | ||||||||||||
80,000 | CubeSmart, (2) | 1,461,600 | ||||||||||||
25,000 | Entertainment Properties Trust, (2) | 1,284,250 | ||||||||||||
50,000 | LaSalle Hotel Properties | 1,552,499 | ||||||||||||
180,000 | MFA Mortgage Investments, Inc. | 1,333,800 | ||||||||||||
Total Real Estate Investment Trust | 8,137,829 | |||||||||||||
Road & Rail – 2.1% | ||||||||||||||
51,500 | Celadon Group, Inc., (2) | 954,810 | ||||||||||||
40,500 | Saia, Inc., (3) | 1,317,465 | ||||||||||||
Total Road & Rail | 2,272,275 | |||||||||||||
Semiconductors & Equipment – 5.1% | ||||||||||||||
124,000 | Cypress Semiconductor Corporation, (2) | 1,150,720 | ||||||||||||
160,000 | Integrated Device Technology, Inc., (2), (3) | 1,702,399 | ||||||||||||
34,226 | MKS Instruments Inc. | 1,014,459 | ||||||||||||
187,000 | TriQuint Semiconductor, Inc., (3) | 1,482,910 | ||||||||||||
Total Semiconductors & Equipment | 5,350,488 |
38 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Specialty Retail – 4.6% | ||||||||||||||
35,000 | Ann Inc., (3) | $ | 1,237,600 | |||||||||||
18,000 | Genesco Inc., (3) | 1,225,980 | ||||||||||||
18,800 | Group 1 Automotive Inc., (2) | 1,203,200 | ||||||||||||
27,050 | Mens Wearhouse Inc. | 1,144,215 | ||||||||||||
Total Specialty Retail | 4,810,995 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.1% | ||||||||||||||
61,000 | Perry Ellis International, Inc., (2) | 1,159,610 | ||||||||||||
Thrifts & Mortgage Finance – 2.3% | ||||||||||||||
87,500 | Everbank Financial Corporation | 1,323,000 | ||||||||||||
16,500 | WSFS Financial Corporation | 1,155,165 | ||||||||||||
Total Thrifts & Mortgage Finance | 2,478,165 | |||||||||||||
Total Common Stocks (cost $80,394,865) | 102,646,025 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 28.6% | ||||||||||||||
Money Market Funds – 28.6% | ||||||||||||||
30,104,833 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 30,104,833 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $30,104,833) | 30,104,833 | |||||||||||||
Total Long-Term Investments (cost $110,499,698) | 132,750,858 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.8% | ||||||||||||||
Money Market Funds – 1.8% | ||||||||||||||
1,872,131 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 1,872,131 | |||||||||||
|
| |||||||||||||
Total Short-Term Investments (cost $1,872,131) | 1,872,131 | |||||||||||||
Total Investments (cost $112,371,829) – 127.8% | 134,622,989 | |||||||||||||
Other Assets Less Liabilities – (27.8)% | (29,270,466 | ) | ||||||||||||
Net Assets – 100% | $ | 105,352,523 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan as of the end of the reporting period was $28,905,046. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
See accompanying notes to financial statements.
Nuveen Investments | 39 |
Assets and Liabilities October 31, 2013
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Assets | ||||||||||||
Investments, at value (cost $1,205,404,013, $117,746,525 and $82,266,996, respectively) | $ | 1,701,117,959 | $ | 141,278,504 | $ | 104,518,156 | ||||||
Investments purchased with collateral from securities lending (cost approximates value) | 162,251,877 | 42,313,911 | 30,104,833 | |||||||||
Receivable for: | ||||||||||||
Dividends | 1,863,494 | 61,782 | 48,694 | |||||||||
Due from broker | 27,896 | 9,103 | 2,815 | |||||||||
Investments sold | — | 2,037,401 | 315,555 | |||||||||
Shares sold | 3,936,958 | 2,320,271 | 1,047,190 | |||||||||
Other assets | 26,783 | 6,387 | 2,897 | |||||||||
Total assets | 1,869,224,967 | 188,027,359 | 136,040,140 | |||||||||
Liabilities | ||||||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 162,251,877 | 42,313,911 | 30,104,833 | |||||||||
Investments purchased | — | 1,832,323 | 365,337 | |||||||||
Shares redeemed | 2,324,866 | 97,252 | 62,274 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 958,642 | 124,973 | 96,095 | |||||||||
Directors fees | 36,460 | 4,786 | 788 | |||||||||
12b-1 distribution and service fees | 144,151 | 18,881 | 15,653 | |||||||||
Other | 659,258 | 49,505 | 42,637 | |||||||||
Total liabilities | 166,375,254 | 44,441,631 | 30,687,617 | |||||||||
Net assets | $ | 1,702,849,713 | $ | 143,585,728 | $ | 105,352,523 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 384,225,640 | $ | 35,719,059 | $ | 45,225,413 | ||||||
Shares outstanding | 21,602,269 | 1,152,231 | 2,663,399 | |||||||||
Net asset value per share | $ | 17.79 | $ | 31.00 | $ | 16.98 | ||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 18.88 | $ | 32.89 | $ | 18.02 | ||||||
Class B Shares | ||||||||||||
Net assets | $ | 1,255,575 | $ | 1,211,738 | N/A | |||||||
Shares outstanding | 71,300 | 41,656 | N/A | |||||||||
Net asset value and offering price per share | $ | 17.61 | $ | 29.09 | N/A | |||||||
Class C Shares | ||||||||||||
Net assets | $ | 59,752,582 | $ | 8,042,075 | $ | 3,297,236 | ||||||
Shares outstanding | 3,396,992 | 270,273 | 223,391 | |||||||||
Net asset value and offering price per share | $ | 17.59 | $ | 29.76 | $ | 14.76 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 38,588,636 | $ | 8,401,074 | $ | 8,548,670 | ||||||
Shares outstanding | 2,173,649 | 272,588 | 513,294 | |||||||||
Net asset value and offering price per share | $ | 17.75 | $ | 30.82 | $ | 16.65 | ||||||
Class R6 Shares(1) | ||||||||||||
Net assets | $ | 67,619,521 | N/A | N/A | ||||||||
Shares outstanding | 3,771,127 | N/A | N/A | |||||||||
Net asset value, and offering price per share | $ | 17.93 | N/A | N/A | ||||||||
Class I Shares | ||||||||||||
Net assets | $ | 1,151,407,759 | $ | 90,211,782 | $ | 48,281,204 | ||||||
Shares outstanding | 64,223,807 | 2,900,609 | 2,750,806 | |||||||||
Net asset value and offering price per share | $ | 17.93 | $ | 31.10 | $ | 17.55 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 1,058,118,054 | $ | 150,987,884 | $ | 103,585,106 | ||||||
Undistributed (Over-distribution of) net investment income | 2,685,183 | 842,571 | 440,487 | |||||||||
Accumulated net realized gain (loss) | 146,332,530 | (31,776,706 | ) | (20,924,230 | ) | |||||||
Net unrealized appreciation (depreciation) | 495,713,946 | 23,531,979 | 22,251,160 | |||||||||
Net assets | $ | 1,702,849,713 | $ | 143,585,728 | $ | 105,352,523 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
N/A – Fund does not offer share class.
(1) – Class R6 Shares were established and commenced operations on February 28, 2013.
See accompanying notes to financial statements.
40 | Nuveen Investments |
Operations Year Ended October 31, 2013
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income (net of foreign tax withheld of $285,636, $— and $—, respectively) | $ | 46,296,586 | $ | 2,418,266 | $ | 1,597,269 | ||||||
Securities lending income, net | 589,498 | 160,728 | 36,709 | |||||||||
Total investment income | 46,886,084 | 2,578,994 | 1,633,978 | |||||||||
Expenses | ||||||||||||
Management fees | 11,650,865 | 1,294,963 | 798,999 | |||||||||
12b-1 service fees – Class A | 800,846 | 90,356 | 94,057 | |||||||||
12b-1 distribution and service fees – Class B | 13,510 | 13,628 | N/A | |||||||||
12b-1 distribution and service fees – Class C | 399,074 | 77,434 | 21,588 | |||||||||
12b-1 distribution and service fees – Class R3 | 146,948 | 45,176 | 28,293 | |||||||||
Shareholder servicing agent fees and expenses | 1,295,460 | 166,781 | 153,875 | |||||||||
Custodian fees and expenses | 260,644 | 47,337 | 27,365 | |||||||||
Directors fees and expenses | 40,044 | 3,828 | 2,470 | |||||||||
Professional fees | 93,472 | 30,588 | 27,121 | |||||||||
Shareholder reporting expenses | 167,747 | 27,699 | 20,588 | |||||||||
Federal and state registration fees | 105,720 | 62,734 | 50,700 | |||||||||
Other expenses | 22,901 | 2,055 | 537 | |||||||||
Total expenses before fee waiver/expense reimbursement | 14,997,231 | 1,862,579 | 1,225,593 | |||||||||
Fee waiver/expense reimbursement | (111,112 | ) | (81,681 | ) | (8,182 | ) | ||||||
Net expenses | 14,886,119 | 1,780,898 | 1,217,411 | |||||||||
Net investment income (loss) | 31,999,965 | 798,096 | 416,567 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from investments | 165,763,410 | 24,372,068 | 11,086,813 | |||||||||
Change in net unrealized appreciation (depreciation) of investments | 180,627,113 | 18,265,979 | 15,049,748 | |||||||||
Net realized and unrealized gain (loss) | 346,390,523 | 42,638,047 | 26,136,561 | |||||||||
Net increase (decrease) in net assets from operations | $ | 378,390,488 | $ | 43,436,143 | $ | 26,553,128 |
N/A – Fund does not offer share class.
See accompanying notes to financial statements.
Nuveen Investments | 41 |
Changes in Net Assets
Dividend Value | ||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 31,999,965 | $ | 25,644,589 | ||||
Net realized gain (loss) from investments | 165,763,410 | 40,955,240 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 180,627,113 | 87,692,871 | ||||||
Net increase (decrease) in net assets from operations | 378,390,488 | 154,292,700 | ||||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A | (6,061,320 | ) | (4,532,612 | ) | ||||
Class B | (15,883 | ) | (33,355 | ) | ||||
Class C | (459,457 | ) | (350,680 | ) | ||||
Class R3 | (486,136 | ) | (321,277 | ) | ||||
Class R6(1) | (900,233 | ) | — | |||||
Class I | (23,887,985 | ) | (23,257,909 | ) | ||||
From accumulated net realized gains: | ||||||||
Class A | (7,596,475 | ) | — | |||||
Class B | (39,707 | ) | — | |||||
Class C | (834,161 | ) | — | |||||
Class R3 | (623,435 | ) | — | |||||
Class R6(1) | — | — | ||||||
Class I | (28,858,444 | ) | — | |||||
Decrease in net assets from distributions to shareholders | (69,763,236 | ) | (28,495,833 | ) | ||||
Fund Share Transactions | ||||||||
Fund reorganization | — | 137,390,211 | ||||||
Proceeds from sale of shares | 429,254,691 | 329,723,796 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 41,984,713 | 13,538,292 | ||||||
471,239,404 | 480,652,299 | |||||||
Cost of shares redeemed | (475,077,918 | ) | (280,917,888 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (3,838,514 | ) | 199,734,411 | |||||
Net increase (decrease) in net assets | 304,788,738 | 325,531,278 | ||||||
Net assets at the beginning of period | 1,398,060,975 | 1,072,529,697 | ||||||
Net assets at the end of period | $ | 1,702,849,713 | $ | 1,398,060,975 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 2,685,183 | $ | (39,460 | ) |
(1) – Class R6 Shares were established and commenced operations on February 28, 2013.
See accompanying notes to financial statements.
42 | Nuveen Investments |
Mid Cap Value | Small Cap Value | |||||||||||||||||
Year Ended | Year Ended 10/31/12 | Year Ended | Year Ended 10/31/12 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 798,096 | $ | 1,759,372 | $ | 416,567 | $ | 437,763 | ||||||||||
Net realized gain (loss) from investments | 24,372,068 | 9,505,619 | 11,086,813 | 8,773,503 | ||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 18,265,979 | 3,105,284 | 15,049,748 | 524,575 | ||||||||||||||
Net increase (decrease) in net assets from operations | 43,436,143 | 14,370,275 | 26,553,128 | 9,735,841 | ||||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A | (366,544 | ) | (268,737 | ) | (126,553 | ) | — | |||||||||||
Class B | (4,764 | ) | — | N/A | N/A | |||||||||||||
Class C | (24,117 | ) | — | — | — | |||||||||||||
Class R3 | (75,223 | ) | (47,224 | ) | (5,043 | ) | — | |||||||||||
Class R6 | N/A | N/A | N/A | N/A | ||||||||||||||
Class I | (1,195,031 | ) | (1,688,085 | ) | (267,460 | ) | — | |||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A | — | — | — | — | ||||||||||||||
Class B | — | — | N/A | N/A | ||||||||||||||
Class C | — | — | — | — | ||||||||||||||
Class R3 | — | — | — | — | ||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | ||||||||||||||
Class I | — | — | — | — | ||||||||||||||
Decrease in net assets from distributions to shareholders | (1,665,679 | ) | (2,004,046 | ) | (399,056 | ) | — | |||||||||||
Fund Share Transactions | ||||||||||||||||||
Fund reorganization | — | — | — | — | ||||||||||||||
Proceeds from sale of shares | 15,873,293 | 22,235,804 | 28,341,425 | 16,610,022 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 958,067 | 1,045,228 | 311,768 | — | ||||||||||||||
16,831,360 | 23,281,032 | 28,653,193 | 16,610,022 | |||||||||||||||
Cost of shares redeemed | (75,923,914 | ) | (104,822,100 | ) | (27,126,571 | ) | (32,827,602 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (59,092,554 | ) | (81,541,068 | ) | 1,526,622 | (16,217,580 | ) | |||||||||||
Net increase (decrease) in net assets | (17,322,090 | ) | (69,174,839 | ) | 27,680,694 | (6,481,739 | ) | |||||||||||
Net assets at the beginning of period | 160,907,818 | 230,082,657 | 77,671,829 | 84,153,568 | ||||||||||||||
Net assets at the end of period | $ | 143,585,728 | $ | 160,907,818 | $ | 105,352,523 | $ | 77,671,829 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 842,571 | $ | 1,691,252 | $ | 440,487 | $ | 362,724 |
N/A – Fund does not offer share class.
See accompanying notes to financial statements.
Nuveen Investments | 43 |
Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
DIVIDEND VALUE | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net Realized | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (12/92) |
| �� | ||||||||||||||||||||||||||||||||
2013 | $ | 14.60 | $ | .30 | $ | 3.59 | $ | 3.89 | $ | (.30 | ) | $ | (.40 | ) | $ | (.70 | ) | $ | 17.79 | |||||||||||||||
2012 | 13.05 | .27 | 1.59 | 1.86 | (.31 | ) | — | (.31 | ) | 14.60 | ||||||||||||||||||||||||
2011 | 12.42 | .27 | .63 | .90 | (.27 | ) | — | (.27 | ) | 13.05 | ||||||||||||||||||||||||
2010 | 10.76 | .34 | 1.63 | 1.97 | (.31 | ) | — | (.31 | ) | 12.42 | ||||||||||||||||||||||||
2009 | 10.09 | .29 | .71 | 1.00 | (.33 | ) | — | (.33 | ) | 10.76 | ||||||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | 14.47 | .19 | 3.53 | 3.72 | (.18 | ) | (.40 | ) | (.58 | ) | 17.61 | |||||||||||||||||||||||
2012 | 12.93 | .18 | 1.57 | 1.75 | (.21 | ) | — | (.21 | ) | 14.47 | ||||||||||||||||||||||||
2011 | 12.25 | .17 | .61 | .78 | (.10 | ) | — | (.10 | ) | 12.93 | ||||||||||||||||||||||||
2010 | 10.61 | .24 | 1.61 | 1.85 | (.21 | ) | — | (.21 | ) | 12.25 | ||||||||||||||||||||||||
2009 | 9.96 | .22 | .68 | .90 | (.25 | ) | — | (.25 | ) | 10.61 | ||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||
2013 | 14.42 | .18 | 3.57 | 3.75 | (.18 | ) | (.40 | ) | (.58 | ) | 17.59 | |||||||||||||||||||||||
2012 | 12.92 | .17 | 1.54 | 1.71 | (.21 | ) | — | (.21 | ) | 14.42 | ||||||||||||||||||||||||
2011 | 12.26 | .17 | .62 | .79 | (.13 | ) | — | (.13 | ) | 12.92 | ||||||||||||||||||||||||
2010 | 10.63 | .26 | 1.60 | 1.86 | (.23 | ) | — | (.23 | ) | 12.26 | ||||||||||||||||||||||||
2009 | 9.98 | .21 | .69 | .90 | (.25 | ) | — | (.25 | ) | 10.63 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 14.58 | .26 | 3.57 | 3.83 | (.26 | ) | (.40 | ) | (.66 | ) | 17.75 | |||||||||||||||||||||||
2012 | 13.03 | .24 | 1.59 | 1.83 | (.28 | ) | — | (.28 | ) | 14.58 | ||||||||||||||||||||||||
2011 | 12.41 | .23 | .63 | .86 | (.24 | ) | — | (.24 | ) | 13.03 | ||||||||||||||||||||||||
2010 | 10.76 | .30 | 1.64 | 1.94 | (.29 | ) | — | (.29 | ) | 12.41 | ||||||||||||||||||||||||
2009 | 10.08 | .28 | .68 | .96 | (.28 | ) | — | (.28 | ) | 10.76 | ||||||||||||||||||||||||
Class R6 (2/13) |
| |||||||||||||||||||||||||||||||||
2013(d) | 15.36 | .22 | 2.60 | 2.82 | (.25 | ) | — | (.25 | ) | 17.93 | ||||||||||||||||||||||||
Class I (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | 14.72 | .35 | 3.61 | 3.96 | (.35 | ) | (.40 | ) | (.75 | ) | 17.93 | |||||||||||||||||||||||
2012 | 13.16 | .31 | 1.60 | 1.91 | (.35 | ) | — | (.35 | ) | 14.72 | ||||||||||||||||||||||||
2011 | 12.53 | .31 | .64 | .95 | (.32 | ) | — | (.32 | ) | 13.16 | ||||||||||||||||||||||||
2010 | 10.85 | .37 | 1.65 | 2.02 | (.34 | ) | — | (.34 | ) | 12.53 | ||||||||||||||||||||||||
2009 | 10.18 | .32 | .70 | 1.02 | (.35 | ) | — | (.35 | ) | 10.85 |
44 | Nuveen Investments |
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Ratios to Average Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||
27.72 | % | $ | 384,226 | 1.13 | % | 1.88 | % | 1.12 | % | 1.89 | % | 44 | % | |||||||||||||||||
14.31 | 273,317 | 1.16 | 1.95 | 1.16 | 1.95 | 24 | ||||||||||||||||||||||||
7.28 | 176,954 | 1.14 | 2.05 | 1.14 | 2.05 | 33 | ||||||||||||||||||||||||
18.46 | 125,226 | 1.19 | 2.87 | 1.17 | 2.89 | 29 | ||||||||||||||||||||||||
10.32 | 100,059 | 1.19 | 3.00 | 1.19 | 3.00 | 48 | ||||||||||||||||||||||||
26.65 | 1,256 | 1.89 | 1.18 | 1.87 | 1.19 | 44 | ||||||||||||||||||||||||
13.51 | 1,525 | 1.91 | 1.33 | 1.91 | 1.33 | 24 | ||||||||||||||||||||||||
6.45 | 3,016 | 1.89 | 1.32 | 1.89 | 1.32 | 33 | ||||||||||||||||||||||||
17.59 | 5,039 | 1.94 | 2.05 | 1.92 | 2.07 | 29 | ||||||||||||||||||||||||
9.41 | 7,237 | 1.94 | 2.28 | 1.94 | 2.28 | 48 | ||||||||||||||||||||||||
26.95 | 59,753 | 1.88 | 1.09 | 1.87 | 1.10 | 44 | ||||||||||||||||||||||||
13.29 | 29,234 | 1.91 | 1.21 | 1.91 | 1.21 | 24 | ||||||||||||||||||||||||
6.42 | 18,714 | 1.89 | 1.31 | 1.89 | 1.31 | 33 | ||||||||||||||||||||||||
17.60 | 11,107 | 1.94 | 2.20 | 1.92 | 2.22 | 29 | ||||||||||||||||||||||||
9.41 | 4,921 | 1.94 | 2.23 | 1.94 | 2.23 | 48 | ||||||||||||||||||||||||
27.30 | 38,589 | 1.38 | 1.61 | 1.37 | 1.62 | 44 | ||||||||||||||||||||||||
14.13 | 21,649 | 1.41 | 1.70 | 1.41 | 1.70 | 24 | ||||||||||||||||||||||||
6.93 | 12,092 | 1.41 | 1.75 | 1.41 | 1.75 | 33 | ||||||||||||||||||||||||
18.16 | 1,204 | 1.41 | 2.48 | 1.39 | 2.50 | 29 | ||||||||||||||||||||||||
9.92 | 122 | 1.45 | 2.94 | 1.45 | 2.94 | 48 | ||||||||||||||||||||||||
18.52 | 67,620 | .80 | * | 1.98 | * | .80 | * | 1.98 | * | 44 | ||||||||||||||||||||
27.96 | 1,151,408 | .88 | 2.16 | .87 | 2.16 | 44 | ||||||||||||||||||||||||
14.65 | 1,072,335 | .91 | 2.23 | .91 | 2.23 | 24 | ||||||||||||||||||||||||
7.56 | 861,754 | .89 | 2.30 | .89 | 2.31 | 33 | ||||||||||||||||||||||||
18.78 | 684,540 | .94 | 3.12 | .92 | 3.10 | 29 | ||||||||||||||||||||||||
10.51 | 570,690 | .94 | 3.25 | .94 | 3.25 | 48 |
(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 February 28, 2013 (commencement of operations) through October 31, 2013. |
(e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 45 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
MID CAP VALUE | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 23.22 | $ | .12 | $ | 7.91 | $ | 8.03 | $ | (.25 | ) | $ | — | $ | (.25 | ) | $ | 31.00 | ||||||||||||||||
2012 | 21.83 | .18 | 1.35 | 1.53 | (.14 | ) | — | (.14 | ) | 23.22 | ||||||||||||||||||||||||
2011 | 22.20 | .07 | (.19 | ) | (.12 | ) | (.25 | ) | — | (.25 | ) | 21.83 | ||||||||||||||||||||||
2010 | 18.28 | .12 | 4.00 | 4.12 | (.20 | ) | — | (.20 | ) | 22.20 | ||||||||||||||||||||||||
2009 | 16.13 | .24 | 1.99 | 2.23 | (.08 | ) | — | (.08 | ) | 18.28 | ||||||||||||||||||||||||
Class B (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | 21.79 | (.07 | ) | 7.44 | 7.37 | (.07 | ) | — | (.07 | ) | 29.09 | |||||||||||||||||||||||
2012 | 20.52 | .01 | 1.26 | 1.27 | — | — | — | 21.79 | ||||||||||||||||||||||||||
2011 | 20.87 | (.10 | ) | (.18 | ) | (.28 | ) | (.07 | ) | — | (.07 | ) | 20.52 | |||||||||||||||||||||
2010 | 17.21 | (.04 | ) | 3.78 | 3.74 | (.08 | ) | — | (.08 | ) | 20.87 | |||||||||||||||||||||||
2009 | 15.22 | .13 | 1.87 | 2.00 | (.01 | ) | — | (.01 | ) | 17.21 | ||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||
2013 | 22.29 | (.08 | ) | 7.62 | 7.54 | (.07 | ) | — | (.07 | ) | 29.76 | |||||||||||||||||||||||
2012 | 20.99 | .01 | 1.29 | 1.30 | — | — | — | 22.29 | ||||||||||||||||||||||||||
2011 | 21.36 | (.10 | ) | (.18 | ) | (.28 | ) | (.09 | ) | — | (.09 | ) | 20.99 | |||||||||||||||||||||
2010 | 17.61 | (.04 | ) | 3.86 | 3.82 | (.07 | ) | — | (.07 | ) | 21.36 | |||||||||||||||||||||||
2009 | 15.58 | .12 | 1.92 | 2.04 | (.01 | ) | — | (.01 | ) | 17.61 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 23.08 | .06 | 7.87 | 7.93 | (.19 | ) | — | (.19 | ) | 30.82 | ||||||||||||||||||||||||
2012 | 21.70 | .12 | 1.33 | 1.45 | (.07 | ) | — | (.07 | ) | 23.08 | ||||||||||||||||||||||||
2011 | 22.05 | .01 | (.19 | ) | (.18 | ) | (.17 | ) | — | (.17 | ) | 21.70 | ||||||||||||||||||||||
2010 | 18.15 | .06 | 3.99 | 4.05 | (.15 | ) | — | (.15 | ) | 22.05 | ||||||||||||||||||||||||
2009 | 16.04 | .19 | 1.98 | 2.17 | (.06 | ) | — | (.06 | ) | 18.15 | ||||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||
2013 | 23.29 | .19 | 7.93 | 8.12 | (.31 | ) | — | (.31 | ) | 31.10 | ||||||||||||||||||||||||
2012 | 21.99 | .24 | 1.33 | 1.57 | (.27 | ) | — | (.27 | ) | 23.29 | ||||||||||||||||||||||||
2011 | 22.37 | .15 | (.22 | ) | (.07 | ) | (.31 | ) | — | (.31 | ) | 21.99 | ||||||||||||||||||||||
2010 | 18.42 | .16 | 4.05 | 4.21 | (.26 | ) | — | (.26 | ) | 22.37 | ||||||||||||||||||||||||
2009 | 16.24 | .28 | 2.01 | 2.29 | (.11 | ) | — | (.11 | ) | 18.42 |
46 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
34.93 | % | $ | 35,719 | 1.39 | % | .40 | % | 1.33 | % | .45 | % | 118 | % | |||||||||||||||||
7.03 | 35,633 | 1.49 | .58 | 1.28 | .79 | 140 | ||||||||||||||||||||||||
(.64 | ) | 52,334 | 1.33 | .27 | 1.31 | .30 | 123 | |||||||||||||||||||||||
22.65 | 76,667 | 1.25 | .58 | 1.25 | .58 | 123 | ||||||||||||||||||||||||
13.95 | 130,222 | 1.25 | 1.52 | 1.25 | 1.52 | 106 | ||||||||||||||||||||||||
33.93 | 1,212 | 2.14 | (.34 | ) | 2.08 | (.28 | ) | 118 | ||||||||||||||||||||||
6.19 | 1,568 | 2.24 | (.18 | ) | 2.02 | .04 | 140 | |||||||||||||||||||||||
(1.35 | ) | 2,073 | 2.08 | (.48 | ) | 2.06 | (.45 | ) | 123 | |||||||||||||||||||||
21.77 | 2,815 | 2.00 | (.20 | ) | 2.00 | (.20 | ) | 123 | ||||||||||||||||||||||
13.13 | 3,481 | 1.98 | .85 | 1.98 | .85 | 106 | ||||||||||||||||||||||||
33.94 | 8,042 | 2.14 | (.35 | ) | 2.08 | (.29 | ) | 118 | ||||||||||||||||||||||
6.19 | 7,855 | 2.24 | (.17 | ) | 2.02 | .05 | 140 | |||||||||||||||||||||||
(1.35 | ) | 8,957 | 2.08 | (.48 | ) | 2.06 | (.45 | ) | 123 | |||||||||||||||||||||
21.74 | 11,564 | 2.00 | (.21 | ) | 2.00 | (.21 | ) | 123 | ||||||||||||||||||||||
13.10 | 12,040 | 2.00 | .80 | 2.00 | .80 | 106 | ||||||||||||||||||||||||
34.63 | 8,401 | 1.64 | .16 | 1.58 | .22 | 118 | ||||||||||||||||||||||||
6.70 | 9,576 | 1.74 | .31 | 1.53 | .52 | 140 | ||||||||||||||||||||||||
(.87 | ) | 15,310 | 1.58 | .03 | 1.56 | .06 | 123 | |||||||||||||||||||||||
22.40 | 20,195 | 1.50 | .30 | 1.50 | .30 | 123 | ||||||||||||||||||||||||
13.63 | 25,664 | 1.50 | 1.21 | 1.50 | 1.21 | 106 | ||||||||||||||||||||||||
35.29 | 90,212 | 1.13 | .66 | 1.08 | .71 | 118 | ||||||||||||||||||||||||
7.23 | 106,276 | 1.24 | .82 | 1.03 | 1.03 | 140 | ||||||||||||||||||||||||
(.42 | ) | 151,409 | 1.07 | .65 | 1.06 | .65 | 123 | |||||||||||||||||||||||
22.98 | 470,266 | 1.00 | .78 | 1.00 | .78 | 123 | ||||||||||||||||||||||||
14.24 | 440,968 | 1.00 | 1.76 | 1.00 | 1.76 | 106 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 47 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
SMALL CAP VALUE | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 12.63 | $ | .06 | $ | 4.34 | $ | 4.40 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 16.98 | ||||||||||||||||
2012 | 11.30 | .05 | 1.28 | 1.33 | — | — | — | 12.63 | ||||||||||||||||||||||||||
2011 | 10.26 | (.05 | ) | 1.09 | 1.04 | — | — | — | 11.30 | |||||||||||||||||||||||||
2010 | 8.22 | (.01 | ) | 2.07 | 2.06 | (.02 | ) | — | (.02 | ) | 10.26 | |||||||||||||||||||||||
2009 | 8.12 | .03 | .15 | .18 | (.08 | ) | — | (.08 | ) | 8.22 | ||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||
2013 | 11.02 | (.05 | ) | 3.79 | 3.74 | — | — | — | 14.76 | |||||||||||||||||||||||||
2012 | 9.93 | (.04 | ) | 1.13 | 1.09 | — | — | — | 11.02 | |||||||||||||||||||||||||
2011 | 9.08 | (.12 | ) | .97 | .85 | — | — | — | 9.93 | |||||||||||||||||||||||||
2010 | 7.31 | (.07 | ) | 1.84 | 1.77 | — | — | — | 9.08 | |||||||||||||||||||||||||
2009 | 7.22 | (.02 | ) | .13 | .11 | (.02 | ) | — | (.02 | ) | 7.31 | |||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 12.39 | .01 | 4.27 | 4.28 | (.02 | ) | — | (.02 | ) | 16.65 | ||||||||||||||||||||||||
2012 | 11.11 | .02 | 1.26 | 1.28 | — | — | — | 12.39 | ||||||||||||||||||||||||||
2011 | 10.11 | (.07 | ) | 1.07 | 1.00 | — | — | — | 11.11 | |||||||||||||||||||||||||
2010 | 8.10 | (.03 | ) | 2.04 | 2.01 | — | — | — | 10.11 | |||||||||||||||||||||||||
2009 | 8.00 | .01 | .15 | .16 | (.06 | ) | — | (.06 | ) | 8.10 | ||||||||||||||||||||||||
Class I (8/94) |
| |||||||||||||||||||||||||||||||||
2013 | 13.06 | .10 | 4.48 | 4.58 | (.09 | ) | — | (.09 | ) | 17.55 | ||||||||||||||||||||||||
2012 | 11.65 | .08 | 1.33 | 1.41 | — | — | — | 13.06 | ||||||||||||||||||||||||||
2011 | 10.55 | (.02 | ) | 1.12 | 1.10 | — | — | — | 11.65 | |||||||||||||||||||||||||
2010 | 8.45 | .01 | 2.13 | 2.14 | (.04 | ) | — | (.04 | ) | 10.55 | ||||||||||||||||||||||||
2009 | 8.36 | .05 | .15 | .20 | (.11 | ) | — | (.11 | ) | 8.45 |
48 | 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 Investment Income (Loss) | Expenses | Net Investment (Loss) Income | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
34.98 | % | $ | 45,225 | 1.47 | % | .37 | % | 1.46 | % | .38 | % | 56 | % | |||||||||||||||||
11.77 | 32,208 | 1.58 | .26 | 1.46 | .39 | 46 | ||||||||||||||||||||||||
10.14 | 31,814 | 1.48 | (.41 | ) | 1.46 | (.40 | ) | 41 | ||||||||||||||||||||||
25.15 | 32,332 | 1.34 | (.11 | ) | 1.34 | (.11 | ) | 58 | ||||||||||||||||||||||
2.40 | 29,026 | 1.37 | .46 | 1.37 | .46 | 73 | ||||||||||||||||||||||||
33.94 | 3,297 | 2.22 | (.43 | ) | 2.20 | (.42 | ) | 56 | ||||||||||||||||||||||
10.98 | 1,367 | 2.34 | (.47 | ) | 2.21 | (.34 | ) | 46 | ||||||||||||||||||||||
9.36 | 1,498 | 2.23 | (1.18 | ) | 2.21 | (1.18 | ) | 41 | ||||||||||||||||||||||
24.21 | 1,843 | 2.09 | (.86 | ) | 2.09 | (.86 | ) | 58 | ||||||||||||||||||||||
1.56 | 2,080 | 2.12 | (.27 | ) | 2.12 | (.27 | ) | 73 | ||||||||||||||||||||||
34.59 | 8,549 | 1.72 | .06 | 1.71 | .07 | 56 | ||||||||||||||||||||||||
11.52 | 2,653 | 1.83 | .01 | 1.71 | .14 | 46 | ||||||||||||||||||||||||
9.89 | 2,246 | 1.73 | (.66 | ) | 1.71 | (.65 | ) | 41 | ||||||||||||||||||||||
24.85 | 2,111 | 1.59 | (.35 | ) | 1.59 | (.35 | ) | 58 | ||||||||||||||||||||||
2.14 | 2,327 | 1.62 | .19 | 1.62 | .19 | 73 | ||||||||||||||||||||||||
35.34 | 48,281 | 1.22 | .64 | 1.21 | .65 | 56 | ||||||||||||||||||||||||
12.02 | 41,444 | 1.34 | .53 | 1.21 | .66 | 46 | ||||||||||||||||||||||||
10.43 | 48,596 | 1.21 | (.16 | ) | 1.21 | (.16 | ) | 41 | ||||||||||||||||||||||
25.43 | 180,875 | 1.09 | .14 | 1.09 | .14 | 58 | ||||||||||||||||||||||||
2.59 | 149,515 | 1.12 | .72 | 1.12 | .72 | 73 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 49 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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 Dividend Value Fund (“Dividend Value”), Nuveen Mid Cap Value Fund (“Mid Cap Value”) and Nuveen Small Cap Value Fund (“Small Cap Value”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
Investment Adviser
On December 31, 2012, the Funds’ investment adviser converted from a Delaware Corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisors, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolio of the Funds.
Fund Information
Dividend Value’s investment objective is 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. In selecting securities, the Sub-Adviser, will invest in companies that it believes have the ability to pay above average dividends and finance expected growth and are trading at attractive valuations. The Fund will attempt to maintain a dividend that will grow over time. As a result, higher-yielding equity securities will generally represent the core holdings of the Fund. However, the Fund also may invest in lower-yielding, higher-growth equity securities if the Sub-Adviser believes they will help balance the portfolio. The Fund’s equity securities include common stocks, convertible preferred stocks, and corporate debt securities that are convertible into common stocks. All such equity securities will provide current income at the time of purchase. The Fund invests in convertible debt securities in pursuit of both long-term growth of capital and income. The securities’ conversion features provide long-term growth potential, while interest payments on the securities provide income. The Fund may invest in convertible debt securities without regard to their ratings, and therefore may hold convertible debt securities which are rated lower than investment grade.
Mid Cap Value’s investment objective is 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 common stocks of mid-capitalization companies, defined as companies that have market capitalizations at the time of purchase within the market capitalization range of the companies in the Russell Midcap® Index immediately after its most recent reconstitution prior to such purchase. It is expected that reconstitution of the index will occur each year at the end of June. Immediately after the most recent reconstitution, the range was $699 million to $19.2 billion. In selecting stocks, the Sub-Adviser invests in companies that it believes are undervalued relative to other companies in the same industry or market, exhibit good or improving fundamentals, and exhibit an identifiable catalyst that could close the gap between market value and fair value over the next one to two years.
Small Cap Value’s investment objective is 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 common stocks of small-capitalization companies, defined as companies that have market capitalizations of less than $3 billion at the time of purchase. In selecting stocks, the Sub-Adviser invests in companies that it believes meet at least two of the following criteria:
• | Undervalued relative to other companies in the same industry or market; |
• | Good or improving fundamentals; and |
• | An identifiable catalyst that could close the gap between market value and fair value over the next one to two years. |
Each Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, each 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
50 | Nuveen Investments |
to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers. Each Fund may utilize options, futures contracts, options on futures contracts and forward foreign currency exchange contracts (“derivatives”). Each Fund may use these derivatives to manage market or business risk, enhance each 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 February 28, 2013, Dividend Value began offering Class R6 Shares. In connection with this offering certain limited categories of investors of Class I Shares, as defined in the Funds’ 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 investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income 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 at least annually for each Fund with the exception of Dividend Value, which declares and distributes dividends from net investment income to shareholders quarterly. Dividends from net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
The Funds may receive distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. The actual character of distributions to Fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
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. Dividend Value and Mid Cap Value 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
Nuveen Investments | 51 |
Notes to Financial Statements (continued)
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 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, which 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, their 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”), which 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.
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.
52 | Nuveen Investments |
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:
Dividend Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 1,685,077,076 | $ | — | $ | — | $ | 1,685,077,076 | ||||||||
Investments Purchased with Collateral from Securities Lending | 162,251,877 | — | — | 162,251,877 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 16,040,883 | — | — | 16,040,883 | ||||||||||||
Total | $ | 1,863,369,836 | $ | — | $ | — | $ | 1,863,369,836 | ||||||||
Mid Cap Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 140,358,007 | $ | — | $ | — | $ | 140,358,007 | ||||||||
Investments Purchased with Collateral from Securities Lending | 42,313,911 | — | — | 42,313,911 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 920,497 | — | — | 920,497 | ||||||||||||
Total | $ | 183,592,415 | $ | — | $ | — | $ | 183,592,415 | ||||||||
Small Cap Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 102,646,025 | $ | — | $ | — | $ | 102,646,025 | ||||||||
Investments Purchased with Collateral from Securities Lending | 30,104,833 | — | — | 30,104,833 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 1,872,131 | — | — | 1,872,131 | ||||||||||||
Total | $ | 134,622,989 | $ | — | $ | — | $ | 134,622,989 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
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.
Nuveen Investments | 53 |
Notes to Financial Statements (continued)
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
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in 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 the Funds 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 and derivatives are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutions. Each Fund’s policy is to receive cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. The adequacy of the collateral is monitored on a daily basis. If the value of the securities on loan increases, such that the level of collateralization falls below 102%, additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
The Funds’ custodian serves as the securities lending agent for the Funds. Each Fund pays the custodian a fee based on the Fund’s proportional share of the custodian’s expense of operating its securities lending program. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities.
Income from securities lending, net of fees paid, is recognized on the Statement of Operations as “Securities lending income, net.” Securities lending fees paid by each Fund during the fiscal year ended October 31, 2013, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Securities lending fees paid | $ | 80,008 | $ | 29,648 | $ | 3,990 |
54 | Nuveen Investments |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. 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 fiscal year ended October 31, 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, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares were as follows:
Dividend Value | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares issued from reorganization: | ||||||||||||||||
Class A | — | $ | — | 2,866,093 | $ | 46,725,301 | ||||||||||
Class C | — | — | 72,150 | 1,152,063 | ||||||||||||
Class R3 | — | — | 21,533 | 349,365 | ||||||||||||
Class I | — | — | 5,445,884 | 89,163,482 | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 5,928,052 | 96,133,469 | 5,674,770 | 75,791,170 | ||||||||||||
Class B – exchanges | 9,042 | 143,868 | 8,550 | 118,690 | ||||||||||||
Class C | 1,634,902 | 26,844,001 | 746,162 | 10,170,847 | ||||||||||||
Class R3 | 1,165,684 | 18,794,315 | 756,797 | 10,690,622 | ||||||||||||
Class R6(1) | 884,689 | 15,362,104 | — | — | ||||||||||||
Class R6 – exchange of Class I Shares | 3,668,683 | 56,350,962 | — | — | ||||||||||||
Class I | 13,462,045 | 216,508,837 | 17,004,678 | 232,952,467 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 854,677 | 12,763,058 | 299,861 | 4,205,570 | ||||||||||||
Class B | 3,580 | 51,899 | 2,305 | 31,580 | ||||||||||||
Class C | 77,243 | 1,129,896 | 22,044 | 305,305 | ||||||||||||
Class R3 | 71,415 | 1,064,183 | 22,759 | 319,502 | ||||||||||||
Class R6(1) | 54,536 | 900,233 | — | — | ||||||||||||
Class I | 1,743,392 | 26,075,444 | 612,741 | 8,676,335 | ||||||||||||
29,557,940 | 472,122,269 | 33,556,327 | 480,652,299 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,896,951 | ) | (61,661,861 | ) | (3,678,945 | ) | (50,796,593 | ) | ||||||||
Class B | (46,744 | ) | (728,601 | ) | (138,594 | ) | (1,919,513 | ) | ||||||||
Class C | (342,119 | ) | (5,399,404 | ) | (262,178 | ) | (3,631,206 | ) | ||||||||
Class R3 | (548,501 | ) | (8,818,904 | ) | (244,006 | ) | (3,402,933 | ) | ||||||||
Class R6(1) | (836,781 | ) | (14,461,170 | ) | — | — | ||||||||||
Class I | (20,171,509 | ) | (328,539,881 | ) | (15,711,730 | ) | (221,167,643 | ) | ||||||||
Class I – exchange to Class R6 Shares | (3,668,683 | ) | (56,350,962 | ) | — | — | ||||||||||
(29,511,288 | ) | (475,960,783 | ) | (20,035,453 | ) | (280,917,888 | ) | |||||||||
Net increase (decrease) | 46,652 | $ | (3,838,514 | ) | 13,520,874 | $ | 199,734,411 |
(1) – Class R6 Shares were established and commenced operations on February 28, 2013.
Nuveen Investments | 55 |
Notes to Financial Statements (continued)
Mid Cap Value | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 180,919 | $ | 4,841,338 | 175,883 | $ | 3,966,504 | ||||||||||
Class B | 149 | 3,585 | - | - | ||||||||||||
Class C | 35,129 | 928,204 | 12,581 | 251,535 | ||||||||||||
Class R3 | 67,276 | 1,809,518 | 122,017 | 2,606,675 | ||||||||||||
Class I | 299,898 | 8,290,648 | 689,001 | 15,411,090 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 15,342 | 357,321 | 11,855 | 260,482 | ||||||||||||
Class B | 210 | 4,622 | - | - | ||||||||||||
Class C | 1,012 | 22,773 | - | - | ||||||||||||
Class R3 | 3,235 | 75,055 | 2,157 | 47,196 | ||||||||||||
Class I | 21,368 | 498,296 | 33,419 | 737,550 | ||||||||||||
624,538 | 16,831,360 | 1,046,913 | 23,281,032 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (578,915 | ) | (15,652,273 | ) | (1,049,825 | ) | (23,506,293 | ) | ||||||||
Class B | (30,695 | ) | (764,243 | ) | (29,021 | ) | (631,933 | ) | ||||||||
Class C | (118,318 | ) | (3,012,864 | ) | (86,907 | ) | (1,881,579 | ) | ||||||||
Class R3 | (212,784 | ) | (5,682,457 | ) | (414,919 | ) | (9,311,285 | ) | ||||||||
Class I | (1,983,549 | ) | (50,812,077 | ) | (3,046,004 | ) | (69,491,010 | ) | ||||||||
(2,924,261 | ) | (75,923,914 | ) | (4,626,676 | ) | (104,822,100 | ) | |||||||||
Net increase (decrease) | (2,299,723 | ) | $ | (59,092,554 | ) | (3,579,763 | ) | $ | (81,541,068 | ) |
Small Cap Value | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 568,795 | $ | 8,649,676 | 198,937 | $ | 2,422,979 | ||||||||||
Class C | 117,817 | 1,568,728 | 26,365 | 284,629 | ||||||||||||
Class R3 | 443,559 | 6,431,538 | 68,411 | 810,255 | ||||||||||||
Class I | 752,219 | 11,691,483 | 1,054,781 | 13,092,159 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 9,682 | 124,510 | - | - | ||||||||||||
Class C | - | - | - | - | ||||||||||||
Class R3 | 397 | 5,021 | - | - | ||||||||||||
Class I | 13,743 | 182,237 | - | - | ||||||||||||
1,906,212 | 28,653,193 | 1,348,494 | 16,610,022 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (464,882 | ) | (6,833,730 | ) | (464,772 | ) | (5,674,047 | ) | ||||||||
Class C | (18,463 | ) | (242,312 | ) | (53,180 | ) | (558,580 | ) | ||||||||
Class R3 | (144,817 | ) | (2,166,467 | ) | (56,397 | ) | (678,920 | ) | ||||||||
Class I | (1,189,506 | ) | (17,884,062 | ) | (2,051,716 | ) | (25,916,055 | ) | ||||||||
(1,817,668 | ) | (27,126,571 | ) | (2,626,065 | ) | (32,827,602 | ) | |||||||||
Net increase (decrease) | 88,544 | $ | 1,526,622 | (1,277,571 | ) | $ | (16,217,580 | ) |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal year ended October 31, 2013, and fiscal year ended October 31, 2012, were as follows:
Fund | Year Ended 10/31/13 | Year Ended 10/31/12 | ||||||
Dividend Value | 14,763 | 113,604 | ||||||
Mid Cap Value | 4,538 | 23,767 |
56 | Nuveen Investments |
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending and short-term investments) during the fiscal year ended October 31, 2013, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Purchases | $ | 664,824,221 | $ | 168,671,513 | $ | 48,747,063 | ||||||
Sales | 702,776,910 | 231,007,347 | 48,610,074 |
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.
As of October 31, 2013, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Cost of investments | $ | 1,370,653,165 | $ | 160,205,884 | $ | 112,411,451 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 498,598,402 | $ | 24,651,936 | $ | 23,521,752 | ||||||
Depreciation | (5,881,731 | ) | (1,265,405 | ) | (1,310,214 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 492,716,671 | $ | 23,386,531 | $ | 22,211,538 |
Permanent differences, primarily due to the federal taxes paid, tax equalization, investments in partnerships, and reorganization adjustments, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2013, the Funds’ tax year end, as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Capital paid-in | $ | (17,203,723 | ) | $ | 57,521 | $ | (1,813 | ) | ||||
Undistributed (Over-distribution of) net investment income | 2,535,692 | 18,902 | 60,252 | |||||||||
Accumulated net realized gain (loss) | 14,668,031 | (76,423 | ) | (58,439 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2013, the Funds’ tax year end, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Undistributed net ordinary income1 | $ | 16,647,208 | $ | 858,352 | $ | 451,445 | ||||||
Undistributed net long-term capital gains | 147,826,023 | — | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
Nuveen Investments | 57 |
Notes to Financial Statements (continued)
The tax character of distributions paid during the Funds’ tax years ended October 31, 2013 and October 31, 2012, was designated for purposes of the dividends paid deduction as follows:
2013 | Dividend Value | Mid Cap Value | Small Cap Value | |||||||||
Distributions from net ordinary income1 | $ | 31,811,014 | $ | 1,665,679 | $ | 399,056 | ||||||
Distributions from net long-term capital gains2 | 37,952,222 | — | — | |||||||||
2012 | ||||||||||||
Distributions from net ordinary income1 | $ | 27,602,132 | $ | 2,004,046 | $ | — | ||||||
Distributions form net long-term capital gains | 893,701 | — | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
2 | The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to the net capital gain to zero for the tax year ended October 31, 2013. |
As of October 31, 2013, the Funds’ tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by a Fund, while the losses subject to expiration are considered short-term.
Dividend3 Value | Mid Cap Value | Small Cap Value | ||||||||||
Expiration: | ||||||||||||
October 31, 2016 | $ | 12,406,335 | $ | — | $ | — | ||||||
October 31, 2017 | — | 31,631,258 | 20,884,608 | |||||||||
Not subject to expiration: | ||||||||||||
Short-term losses | — | — | — | |||||||||
Long-term losses | — | — | — | |||||||||
Total | $ | 12,406,335 | $ | 31,631,258 | $ | 20,884,608 |
3 | A portion of Dividend Value’s capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. |
During the Funds’ tax year ended October 31, 2013, the Funds utilized their capital loss carryforwards as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Utilized capital loss carryforwards | $ | 4,135,445 | $ | 23,828,388 | $ | 11,120,953 |
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 | Dividend Fund-Level | Mid Cap Fund-Level | Small Fund-Level | |||||||||
For the first $125 million | .6000 | % | .7000 | % | .7000 | % | ||||||
For the next $125 million | .5875 | .6875 | .6875 | |||||||||
For the next $250 million | .5750 | .6750 | .6750 | |||||||||
For the next $500 million | .5625 | .6625 | .6625 | |||||||||
For the next $1 billion | .5500 | .6500 | .6500 | |||||||||
For net assets over $2 billion | .5250 | .6250 | .6250 |
58 | Nuveen Investments |
The annual complex-level fee for each Fund, payable monthly, is determined by taking the complex-level free 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 certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2013, the complex-level fee rate for each Fund was as follows: |
Fund | Complex-Level Fee Rate | |||
Dividend Value | .1876 | % | ||
Mid Cap Value | .2000 | |||
Small Cap Value | .1967 |
The Adviser has contractually agreed to waive fees and/or reimburse other Fund expenses of Mid Cap Value and Small Cap Value so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
Mid Cap Value | Small Cap Value (11/1/12 through 6/23/13) | Small Cap Value (6/24/13 through 10/31/13) | ||||||||||
Class A Shares | 1.34 | % | 1.50 | % | 1.45 | % | ||||||
Class B Shares | 2.09 | N/A | N/A | |||||||||
Class C Shares | 2.09 | 2.25 | 2.20 | |||||||||
Class R3 Shares | 1.59 | 1.75 | 1.70 | |||||||||
Class I Shares | 1.09 | 1.25 | 1.20 | |||||||||
Expiration Date | February 28, 2014 | February 28, 2014 | February 28, 2015 |
N/A – | Fund does not offer share class. |
The Adviser agreed to reimburse management fees across all share classes of Dividend Value through December 31, 2012, to the extent necessary to maintain Class I Share total annual operating expenses, not including any acquired fund fees and expenses, at the applicable percentage of daily net assets listed in the Maximum Expense Level row of the following table, provided that in no event will the Adviser be required to make any reimbursements that would result in an annualized net management fee of less than the applicable percentage of daily net assets listed in the Minimum Management Fee row of the following table.
Dividend Value | ||||
Maximum Expense Level | .95 | % | ||
Minimum Management Fee | .78 |
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.
Nuveen Investments | 59 |
Notes to Financial Statements (continued)
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 enables 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 fiscal year ended October 31, 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:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Sales charges collected (Unaudited) | $ | 545,279 | $ | 16,303 | $ | 25,393 | ||||||
Paid to financial intermediaries (Unaudited) | 480,251 | 14,245 | 22,353 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Commission advances (Unaudited) | $ | 147,119 | $ | 1,255 | $ | 8,044 |
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 fiscal year ended October 31, 2013, the Distributor retained such 12b-1 fees as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
12b-1 fees retained (Unaudited) | $ | 111,447 | $ | 13,267 | $ | 5,157 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2013, as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
CDSC retained (Unaudited) | $ | 11,322 | $ | 892 | $ | — |
8. New Accounting Pronouncements
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.
60 | Nuveen Investments |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 206 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 206 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 206 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 206 | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company; (2006-2013) retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 206 |
Nuveen Investments | 61 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Chairman of the Board of Trustees of Marian University (since 2010 as trustee, 2011 as Chairman); Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 206 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 206 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) and CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 206 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 206 | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 206 |
62 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Interested Board Members: | ||||||||
William Adams IV(2) 1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Senior Executive Vice President, Global Structured Products (since 2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | 135 | ||||
Thomas S. Schreier, Jr.(2) 1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | 135 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 206 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 206 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 206 | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (2010-2011), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Senior Vice President (since 2013), formerly, Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 206 |
Nuveen Investments | 63 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 206 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 206 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 206 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 206 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 206 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 206 | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 103 |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
64 | 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 “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (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 Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser 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 Adviser’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 Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’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 Adviser with questions and the Adviser 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 Adviser and the Sub-Adviser. 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 Adviser 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 Adviser 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 Adviser. 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 Adviser 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-adviser 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-Adviser’s investment teams in Minneapolis in September 2012, and its 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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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 Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’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 Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser 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-Adviser’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-Adviser 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 Adviser’s execution of its oversight responsibilities over the Sub-Adviser. 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 Adviser’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 Adviser 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 Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’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 Adviser’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 Adviser 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 Adviser, 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 Adviser 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 Adviser’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.
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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., generally 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. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
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 Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds 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 Adviser 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 Dividend Value Fund (the “Dividend Value Fund”) had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods. With respect to the Nuveen Small Cap Value Fund (the “Small Cap Value Fund”), the Independent Board Members observed that such Fund had satisfactory performance compared to its peers. In this regard, although such Fund performed in the third quartile over the one-year and five-year periods and underperformed its benchmark in the one-year period, such Fund performed in the first quartile in the three-year period and outperformed its benchmark in the three- and five-year periods. Finally, the Independent Board Members noted that the Nuveen Mid Cap Value Fund (the “Mid Cap Value Fund”) had lagged its peers and benchmarks over various periods. In this regard, such Fund performed in the fourth quartile and underperformed its benchmark for the one-, three- and five-year periods; however, such Fund outperformed its benchmark for the quarter ending March 31, 2013.
As described above, for funds with challenged performance, the Board considered and discussed the factors contributing to the results. In this regard, the Board noted the changes to investment personnel made in 2012 for the Mid Cap Value Fund intended to address such Fund’s longer-term performance issues. The Board is encouraged by these steps and will continue to monitor management’s progress on these issues in general and for the Mid Cap Value Fund, in particular, as well as any further steps proposed or taken to address performance issues.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory, subject to the exception noted above.
Nuveen Investments | 67 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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 ratio 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 Mid Cap Value Fund had a net management fee and a net expense ratio (including fee waivers and expense reimbursements) that were below its peer averages. In addition, the Independent Board Members noted that the Dividend Value Fund had a slightly higher net management fee than its peer average but a net expense ratio that was below the peer average, while the Small Cap Value Fund had a net expense ratio that was higher than the peer average, but a net management fee that was below the peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser 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 Adviser are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Adviser 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
68 | Nuveen Investments |
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 Adviser’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 Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’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.
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 Adviser, 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.
Nuveen Investments | 69 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’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.
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Notes
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Notes
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Notes
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
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 Equity Income Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Equity Income 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 Mid-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Value 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 Small-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Market Capitalization: The market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 1000® Value Index: An index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell 2000® Value Index: An index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell Midcap® Value Index: An index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of 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. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Distribution Information: The Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction (“DRD”) for corporations and their percentages as qualified dividend income (“QDI”) for individuals under Section 1(h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end. |
Fund | % of DRD | % of QDI | ||||||
Nuveen Dividend Value Fund | 100 | % | 100 | % | ||||
Nuveen Mid Cap Value Fund | 80 | % | 85 | % | ||||
Nuveen Small Cap Value Fund | 100 | % | 100 | % |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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.
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The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program. |
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Serving Investors for Generations | ||||||||||||||
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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.
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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 $215 billion as of September 30, 2013. | ||||||||||||||
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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
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MAN-FSTK-1013P
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Mutual Funds |
Nuveen Equity Funds |
For investors seeking a high level of current income and total return. |
| Annual Report October 31, 2013 |
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Nuveen International Select Fund | ISACX | ICCSX | ISYCX | |||||||||
Nuveen Tactical Market Opportunities Fund | NTMAX | NTMCX | FGTYX |
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Nuveen Investments | 3 |
Chairman’s Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
December 23, 2013
4 | Nuveen Investments |
Nuveen International Select Fund
Nuveen Tactical Market Opportunities Fund
At a shareholder meeting held on October 18, 2013, shareholders of the Nuveen International Fund approved the reorganization of their Fund into the Nuveen International Select Fund. The reorganization took effect after the close of business on October 25, 2013.
See Notes to Financial Statements, Note 1—General Information and Significant Accounting Policies, Fund Reorganization for further information.
At the beginning of the reporting period, the Nuveen International Select Fund was managed by a team of managers associated with four different sub-advisers: Nuveen Asset Management, LLC (“Nuveen Asset Management”), an affiliate of Nuveen Investments, Inc.; Altrinsic Global Advisors, LLC (“Altrinsic”); Hansberger Global Investors, Inc. (“Hansberger”); and Lazard Asset Management LLC (“Lazard”). During the period, the Fund’s Board of Directors approved the removal of Hansberger as a sub-adviser to the Fund, effective as of the close of business on June 21, 2013. The assets managed by Hansberger were reallocated to Nuveen Asset Management, which remained as a sub-adviser to the Fund along with Altrinsic and Lazard. At the same time, Tracy Stouffer, CFA, and Jay Rosenberg were named as additional portfolio managers of the Fund. Tracy is a senior vice president and portfolio manager and Jay is a managing director and portfolio manager for Nuveen Asset Management, LLC. The Fund’s investment objectives, principal investment strategies and principal risks have not changed.
The Nuveen Tactical Market Opportunities Fund is managed by a team of managers from Nuveen Asset Management, LLC., an affiliate of Nuveen Investments, Inc.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month reporting period ended October 31, 2013.
What factors affected the U.S. economy and the equity market during the twelve-month reporting period ended October 31, 2013?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013,
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.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
the Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Federal Reserve’s target of 6.5%. As of October 2013, the national unemployment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown if it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Federal Reserve’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility.
For much of the reporting period, low interest rates and a fairly benign macro environment caused U.S. investors to move out the risk spectrum, resulting in robust flows into U.S. equity funds. Leading U.S. stock market indexes, including the S&P 500® Index, the Dow Jones Industrial Average and the Russell 2000® Index, each hit all-time highs during the reporting period. The S&P 500® Index gained 27% over the twelve-month reporting period. Sluggish global growth, muted global inflation and ongoing fiscal drag provided a backdrop for continued monetary policy actions outside the U.S. as well, which drove strong equity market advances globally. In Japan, newly elected Prime Minister Shinzo Abe articulated policies designed to reinvigorate Japan’s weak economy. Widespread optimism for his strategies led to a massive rally in the Japanese equity market, which was up 34% over the reporting period, according to MSCI Japan Index. Elsewhere, the European Central Bank signaled an extended period of low rates while the U.K.’s Bank of England pursued its most aggressive monetary policy to date. Returns for developed markets outside the U.S. were very strong, as evidenced by the MSCI EAFE Index’s advance of 26% for the reporting period. In emerging market countries, which
6 | Nuveen Investments |
are more dependent on global growth and commodity prices, stocks significantly lagged developed markets with a 6% return during this reporting period, according to the MSCI Emerging Market Index.
Nuveen International Select Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and since inception periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) slighty underperformed the MSCI All Country World Investable Market Index (ex U.S.) and the Lipper classification average for the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of foreign issuers that trade in the U.S. or foreign markets, depositary receipts representing shares of foreign issuers and exchange-traded funds and other investment companies that provide exposure to foreign issuers. During this reporting period, three of the Fund’s sub-advisers, Altrinsic Global Advisors, Hansberger Global Investors and Lazard Asset Management, selected stocks for the Fund according to the developed markets value, developed markets growth or emerging market styles, respectively. The Fund’s fourth sub-adviser, Nuveen Asset Management, selected stocks for the Fund in the infrastructure sector and also took over managing the portion of the portfolio formerly managed by Hansberger Global Investors, selecting growth-oriented stocks primarily found in the world’s developed markets. In addition, Nuveen Asset Management maintained strategic oversight of the Fund (subject to the supervision of the Fund’s investment adviser, Nuveen Fund Advisors, Inc., an affiliate of Nuveen Investments, Inc.), which includes allocating assets among the sub-advisers (including itself) and tactically adjusting the overall portfolio balance and country emphasis using index related investments.
While the Fund produced absolute returns during the reporting period, it slightly underperformed the MSCI All Country World Investable Market Index (ex U.S.) and the Lipper classification average primarily due to several unsuccessful country weights and style tilts. However, stock selection by the individual sub-advisers was largely successful during the reporting period.
In terms of regional and country allocations, the Fund’s emphasis on emerging market stocks was not helpful during the first half of the reporting period due to the generally sharp underperformance of stocks in those nations. While emerging markets stabilized in the second half of the reporting period, the Fund had shifted close to the MSCI All Country World Investable Market Index (ex U.S.) weight in terms of its developed versus emerging market exposure. As part of our emphasis on the energy sector, the Fund also had a slight overweight in Russia, a major exporter of both natural gas and oil. This position was a negative contributor as these stocks experienced volatility as energy exports had fallen in price. We continued to favor Russia as we anticipate ongoing high demand for energy as developing economies grow. In addition, a futures position in the Toronto Stock Exchange (TSX) was a relative detractor. We used this position to bring the Fund closer to benchmark weight in Canada as our sub-advisers generally did not have much exposure to individual Canadian stocks. However, the Canadian stock market did not keep pace with the strong results of the MSCI All Country World Investable Market Index (ex U.S.), rising only 7% during this reporting period. Also, we held futures contracts on the FTSE 100 Index (a basket of the 100 largest companies listed on the London Stock Exchange) due to anticipation that Great Britain would outperform broader Europe, which did not take place during the reporting period.
Offsetting some of the negative country allocations was a slight overweight to Japan. Because the Fund was underweight Japan in terms of individual stocks owned, we used futures contracts to increase exposure. The benefit of the
Nuveen Investments | 7 |
Portfolio Managers’ Comments (continued)
futures position was two-fold as the Nikkei Index performed well, while the yen, which the futures have little exposure, had fallen. The Fund received the benefit of the Japanese equity exposure without the negative effects of the slide in the yen’s value. The Japanese equity market rallied during the reporting period, driven by widespread optimism for new Prime Minister Shinzo Abe’s bold policies to re-invigorate Japan’s weak economy; however, these policies have dramatically reduced the value of the yen. The Fund also benefited from an underweight position in India, which was a challenging environment as heavy government interference in the economy made it difficult for businesses to be profitable and expand. Investors continued to pull out of Indian markets during this reporting period, significantly challenging the value of its rupee currency. In addition, the Fund benefited from our underweight to South Africa via a futures position to hedge out exposure to the FTSE/Johannesburg Stock Exchange (JSE) Top 40 Index. Although this index performed reasonably well in local currency terms, after factoring in the sharp drop in the value of South Africa’s rand currency, its performance was weak. The Fund also benefited from an emphasis on countries in the Northern half of the Eurozone, which have stronger economies and more ability to generate growth in earnings, while Spain and Italy continued to experience weak economies. Finally, we successfully overweighted the OMX Stockholm 30 Index, a basket of the 30 most heavily traded stocks in Sweden, through a futures position in the index.
In terms of style effects, our Fund’s under-emphasis on value stocks was a drag on performance during the reporting period. Contrary to the U.S., more value-oriented and dividend-yielding stocks outperformed growth stocks in the overseas markets. Because this Fund’s strategy allocates to multiple sub-advisers, we depend on their selection of individual stocks and don’t attempt to make significant short-term value/growth tilts within the Fund’s portfolio. However, the Fund’s growth managers ran a slightly more aggressive, momentum-oriented growth strategy, while its value-oriented managers stayed closer to a moderate “blend” style.
The effects of the Fund’s sector and industry weights produced mixed results and again are often driven by the underlying stock selections executed by the sub-advisers. The Fund had an overweight in the energy sector and a strong overweight to utilities, both of which did not benefit performance. Also, while we generally avoided specific metals and mining stocks, the Fund had a position in a Gold Miners Index ETF that slightly hindered results. We sold the Gold Miners position in early March before the price of gold fell significantly. However, we countered with a successful overweight to technology stocks and favorable underweights to both the materials and financial sectors.
Stock selection by the Fund’s sub-advisers was a positive contributor to performance. For example, the Fund benefited from a position in Arcam AB, a Swedish 3D printing and additive manufacturing company. Arcam distinguishes itself from competitors through the use of its patented Electron Beam Melting (EBM) technology, which is faster and wastes much less material than the more typical laser-based processes. Also, Baidu Inc., China’s leading online search provider, outperformed after stumbling earlier in the reporting period. Shares of Baidu advanced significantly due to the company’s strong sales and growth initiatives as it attempts to stay ahead of its competition by focusing on improving its customers’ mobile search experience. In addition, Brazilian credit card processing company Cielo S.A. performed well as it announced better-than-expected results with a recovery in margins. Cielo is benefiting from the global secular trend of plastic (credit and debit cards) taking market share away from paper (cash and check) transactions.
Fund performance also benefited from our efforts to hedge away some of the Fund’s strong overweight to the U.S. dollar. The Fund’s U.S. dollar exposure resulted from a number of individual stocks in the portfolio that are domiciled in other countries, but trade on U.S. stock exchanges and are therefore U.S. dollar-denominated securities. We hedged part of this U.S. dollar exposure beginning in March when the currency was much stronger. We accomplished this through a short position on U.S. Dollar (DXY) Index futures, which measure the value of the dollar relative to a basket of six foreign currencies including the euro, the yen, the pound sterling and several other U.S. trading partners. This hedge was successful as it reduced the Fund’s U.S. dollar exposure significantly as the dollar weakened during the reporting
8 | Nuveen Investments |
period. However, we still choose to maintain some of the Fund’s emphasis on the U.S. dollar versus several other currencies, most notably the Japanese yen, where the country has an explicit policy of letting the yen weaken, and a few emerging market currencies such as the Indian rupee, Russia ruble and South African rand. Additionally, Fund performance was hindered by our overweight position in the Australian dollar over the period, which we have since removed.
In addition to those mentioned previously, the Fund continued to use other equity and currency futures contracts as an overlay strategy to adjust the exposures created by its multi-manager framework so that the overall Fund had the desired exposures to key markets. Long and short futures contracts were used to manage country and style exposures and implement various tactical market and hedging strategies. These contracts are used as a means to efficiently gain exposure to a broad base of securities. During the reporting period, these derivative positions had a moderately positive impact on performance.
Nuveen Tactical Market Opportunities Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year and since-inception periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) underperformed the BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index and the Lipper classification average over the twelve-month period. Shareholders should note that the performance of the Lipper classification represents the overall average of returns for funds that invest in a wide range of asset classes, making direct comparisons less meaningful.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund is an absolute return product designed to generate returns through tactical asset allocation positions that seeks to outperform the BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index by 400 basis points over a reasonable period of time. To accomplish the Fund’s goal, we are able to invest in a variety of asset classes, long or short, throughout the world. We also may use other alternative asset classes, such as currencies and commodities, and investment tools such as the VIX (S&P 500® Volatility Index) to take advantage of market opportunities, to further diversify the Fund or as part of our volatility management strategies. We focus on generating returns in the portfolio in three ways: income oriented positions, market directional positions and long and short relative value positions (spread trades) that produce returns through differential performance. The Fund may gain exposure to its asset classes by: investing in derivative instruments and exchange-traded funds (ETFs); creating custom baskets of securities; and investing directly in U.S. Treasury obligations, non-U.S. government obligations that have an investment grade rating from at least one rating agency and money market funds.
During this reporting period, the Fund’s portfolio focused primarily on income and gross (long/short) equity exposure, implemented via spread trades as opposed to net market directional exposure, with significant exposure to foreign markets across asset classes. The Fund’s portfolio was positioned quite modestly from a risk standpoint in relation to the level of risk allowed by this strategy. Fund performance was generally in line with its objectives through mid-May; however, performance suffered a sharp decline through the end of June and has since remained around that level. There were a number of factors that contributed to performance and the sluggishness in the subsequent recovery.
First, we chose to maintain very modest net directional exposure to U.S. equity markets due to several factors: the mature stage of the domestic equity market cycle relative to historical averages; broad valuation measures; the lack of sales growth; modest gains in earnings that have been evident for quite some time among listed companies in aggregate; and event risks that were present around the turn of the year related to fiscal policy choices. We have remained reluctant to add directional domestic equity market exposure and view the risks as being asymmetrical to the
Nuveen Investments | 9 |
Portfolio Managers’ Comments (continued)
downside given a likely shift in monetary policy in the near future, sentiment and valuations. In retrospect, Fund performance would have benefited from a larger U.S. equity allocation, especially when compared to the Lipper peer group average.
Early in 2013, we anticipated that emerging market equities as a group would outperform the U.S. markets based on stronger economic growth prospects, more favorable valuations and the historical linkages between U.S. and developing market performance. We concentrated the Fund’s directional positioning in this segment of the market, which not only underperformed but produced sharply negative returns through the mid portion of the year. Lacking an identifiable catalyst to turn this segment of the market higher, we reduced the Fund’s exposure to emerging market equities at a loss. The negative contribution was partially offset by a positive contribution from a long position in Japanese equities, but our long/short equity positioning did not achieve its historic contribution to performance. In particular, a long Mexico/short: South Africa position, which we closed at a loss, was particularly detrimental. Thus, the equities portion of the Fund did not provide the contribution to return we had anticipated.
We also anticipated that Treasury yields would rise in 2013. Accordingly, we made allocations to short Treasury futures contracts and allocated to non-U.S. government securities and non-Treasury spread sectors that have historically benefited from spread tightening during periods of rising Treasury yields, which helps mitigate the effect of higher risk-free yields on total return. Specifically, we allocated to Australian 10-year Treasury futures that provided a yield about 1.5% above U.S. 10-year Treasuries in early May. We anticipated that the Australian Treasury market would experience far less upward pressure on yields given its higher starting point. We also expected the Reserve Bank of Australia would cut its benchmark policy rate twice during this period, which did indeed take place in the second half. Unfortunately, the rise in Australian yields has almost perfectly matched the magnitude of increase in U.S. Treasury yields over this period, thus our futures position provided little benefit. However, with 10-year Australian Treasuries currently yielding approximately 4.25% versus U.S. equivalents yielding 2.75%, we view this allocation as an attractive position in today’s market. Over the next twelve months, yields would need to rise to close to 5% before the position would generate a negative return, a prospect we believe is unlikely.
A similar set of dynamics occurred for other components of the portfolio, where spreads relative to Treasuries that had historically moved lower as Treasury yields rose actually increased along with Treasury yields, exacerbating the negative price action instead of providing a cushion to rising yields. These included Mexican peso-denominated bonds, dollar-denominated emerging market bonds, preferred securities, high yield municipal debt and higher yielding equity market segments such as utilities, equity and mortgage real estate investment trusts (REITS), and preferred securities. While each of these sectors contributed negatively to post-May performance, they remained components of the strategy, and in some cases larger components, as their forward looking returns are more attractive and downside risks have been moderated with the price action of the past six months.
The objectives, investment process and approach to risk management remain unchanged since the introduction of the Fund’s strategy. The strategy seeks to produce positive returns over a reasonable period of time, irrespective of market conditions through diversified long and short exposures to equities, interest rates, currencies, commodities, credit and volatility management tools. While the strategy has fallen short of that goal over the past six months, we believe it is well positioned, in the context of our risk management discipline, to meet or exceed our performance objectives.
Throughout the period, the Fund also continued to use equity, interest rate and currency futures contracts to implement various absolute return, tactical market and hedging strategies. We also utilized equity call and put options to generate return and manage the Fund. Overall, these derivative positions were a meaningful contributor to performance during the reporting period.
10 | Nuveen Investments |
Mutual fund investing involves risk; principal loss is possible.
Nuveen International Select Fund
Equity investments such as those held by the Fund, are subject to market risk, additional expenses risk, common stock risk, small- and mid-cap stock risk, and multi-manager risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The use of derivatives involves substantial financial risks and transaction costs. These risks are magnified in emerging markets.
Nuveen Tactical Market Opportunities Fund
There is no guarantee that the Fund will achieve its investment objective and the portfolio managers’ asset allocation decisions may adversely affect Fund performance. The Fund is exposed to the risks of the underlying derivative instruments, ETFs, U.S. Treasury bonds, foreign government bonds, commodities, and short-term securities that may be held in the Fund’s portfolio. These risks include market risk, frequent trading risk, liquidity risk, interest rate risk, and credit risk. The credit risk and liquidity risk is heightened for non-investment grade or high-yield securities. The use of derivatives involves substantial financial risks and transaction costs. Commodities may be highly volatile and foreign investments are subject to additional risks including currency fluctuations, and economic or political instability. These risks are magnified in emerging markets. In addition, the Fund will bear its proportionate share of any fees and expenses paid by the ETFs in which it invests.
Nuveen Investments | 11 |
For each of the Funds, dividends from net investment income, if any, are normally declared and paid annually. In addition, any capital gains are normally distributed at least once each year. During the fiscal year ended October 31, 2013 for Nuveen Tactical Market Opportunities Fund, realized losses on foreign currencies significantly offset net investment income. As a result, and as outlined in the table below, a portion of the Fund’s distributions originally characterized as net investment income has now been re-characterized as a return of capital.
Nuveen Tactical Market Opportunities Fund
As of October 31, 2013 | Class A Shares | Class C Shares | Class I Shares | |||||||||
Inception date | 2/24/11 | 2/24/11 | 12/30/09 | |||||||||
Year ended October 31, 2013: | ||||||||||||
Per share distribution: | ||||||||||||
From net investment income | $ | 0.04 | $ | — | $ | 0.06 | ||||||
From net realized capital gains | 0.03 | 0.03 | 0.03 | |||||||||
Return of capital | 0.03 | — | 0.04 | |||||||||
Total per share distribution | $ | 0.10 | $ | 0.03 | $ | 0.13 | ||||||
Net Asset Value (NAV) | $ | 10.69 | $ | 10.57 | $ | 10.72 | ||||||
Distribution rate on NAV | 0.94 | % | 0.28 | % | 1.21 | % | ||||||
Average annual total returns: | ||||||||||||
1-Year on NAV | -4.44 | % | -5.12 | % | -4.18 | % | ||||||
Since inception on NAV | 2.67 | % | 1.88 | % | 2.94 | % |
12 | Nuveen Investments |
Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown on the following four pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 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 waivers 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.
Nuveen Investments | 13 |
Fund Performance and Expense Ratios (continued)
Nuveen International Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | Since | ||||||||||
Class A Shares at NAV | 19.91% | 11.62% | 2.17% | |||||||||
Class A Shares at maximum Offering Price | 12.98% | 10.30% | 1.29% | |||||||||
MSCI All Country World Investable Market Index (ex U.S.)** | 21.20% | 13.68% | 2.85% | |||||||||
Lipper International Multi-Cap Growth Funds Classification Average** | 21.94% | 12.43% | 1.77% | |||||||||
Class C Shares | 19.09% | 10.83% | 1.41% | |||||||||
Class I Shares | 20.27% | 11.91% | 2.43% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | Since | ||||||||||
Class A Shares at NAV | 15.64% | 5.40% | 1.63% | |||||||||
Class A Shares at maximum Offering Price | 8.94% | 4.16% | 0.75% | |||||||||
Class C Shares | 14.66% | 4.61% | 0.87% | |||||||||
Class I Shares | 15.88% | 5.67% | 1.88% |
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 | Net | |||||||
Class A Shares | 1.57% | 1.49% | ||||||
Class C Shares | 2.32% | 2.24% | ||||||
Class I Shares | 1.32% | 1.24% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2015, so that total annual fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.45%, 2.20% and 1.20% for Class A, Class C and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Since inception returns are from 12/21/06. |
** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 15 |
Fund Performance and Expense Ratios (continued)
Nuveen Tactical Market Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013*
Average Annual | ||||||||
1-Year | Since | |||||||
Class A Shares at NAV | (4.44)% | 2.67% | ||||||
Class A Shares at maximum Offering Price | (9.94)% | 1.10% | ||||||
BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index*** | 0.09% | 0.10% | ||||||
Lipper Flexible Portfolio Funds Classification Average*** | 7.92% | 7.48% | ||||||
Class C Shares | (5.12)% | 1.88% | ||||||
Class I Shares | (4.18)% | 2.94% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||
1-Year | Since | |||||||
Class A Shares at NAV | (4.35)% | 2.73% | ||||||
Class A Shares at maximum Offering Price | (9.87)% | 1.12% | ||||||
Class C Shares | (5.11)% | 1.94% | ||||||
Class I Shares | (4.18)% | 3.01% |
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
Expense | ||||
Class A Shares | 1.34% | |||
Class C Shares | 2.08% | |||
Class I Shares | 1.09% |
16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | The Fund is an absolute return product designed to generate returns through tactical asset allocation positions that seeks to outperform the BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index by 400 basis points over a reasonable period of time. |
** | Since inception returns are from 12/30/09. Class I Share returns are actual. The returns for Class A and Class C Shares are actual for the periods since class inception on 2/24/11; returns prior to class inception are Class I Share returns adjusted for differences in sales charges and expense, which are primarily differences in distribution and service fees. |
*** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 17 |
Holding Summaries October 31, 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 International Select Fund
Fund Allocation1
Common Stocks | 92.0% | |||
Common Stock Rights2 | 0.0% | |||
Master Limited Partnerships (MLP) & MLP Affiliates | 0.2% | |||
Short-Term Investments | 8.1% | |||
Other3 | (0.3)% |
Portfolio Composition1
Commercial Banks | 10.3% | |||
Oil, Gas & Consumable Fuels | 6.7% | |||
Pharmaceuticals | 5.2% | |||
Insurance | 4.1% | |||
Machinery | 3.7% | |||
Media | 3.7% | |||
Transportation Infrastructure | 3.6% | |||
Wireless Telecommunication Services | 3.5% | |||
Semiconductors & Equipment | 3.0% | |||
Diversified Financial Services | 2.6% | |||
Internet Software & Services | 2.3% | |||
Food Products | 2.2% | |||
Automobiles | 2.1% | |||
IT Services | 2.0% | |||
Multi-Utilities | 2.0% | |||
Metals & Mining | 1.8% | |||
Trading Companies & Distributors | 1.7% | |||
Beverages | 1.6% | |||
Internet & Catalog Retail | 1.5% | |||
Food & Staples Retailing | 1.5% | |||
Energy Equipment & Services | 1.5% | |||
Real Estate Management & Development | 1.5% | |||
Industrial Conglomerates | 1.5% | |||
Hotels, Restaurants & Leisure | 1.4% | |||
Tobacco | 1.4% | |||
Common Stock Rights2 | 0.0% | |||
Short-Term Investments | 8.1% | |||
Other6 | 19.5% |
Country Allocation1
United Kingdom | 12.5% | |||
Japan | 12.0% | |||
Germany | 7.7% | |||
Switzerland | 5.1% | |||
United States | 4.8% | |||
France | 4.4% | |||
Canada | 4.4% | |||
Brazil | 3.5% | |||
South Korea | 3.4% | |||
South Africa | 2.8% | |||
Hong Kong | 2.4% | |||
Russia | 2.4% | |||
Netherlands | 2.3% | |||
Cayman Islands | 2.2% | |||
Sweden | 2.2% | |||
Short-Term Investments4 | 8.1% | |||
Other5 | 19.8% |
Top Five Common Stock Holdings1
Roche Holding | 1.4% | |||
Deutsche Boerse | 0.9% | |||
Banco do Brasil | 0.9% | |||
Daimler | 0.9% | |||
Novartis | 0.8% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Rounds to less than 0.1%. |
3 | Other assets less liabilities. |
4 | Denominated in U.S. Dollars. |
5 | Includes other assets less liabilities and all countries less than 2.2% of net assets. |
6 | Includes other assets less liabilities and all industries less than 1.4% of net assets. |
18 | Nuveen Investments |
Nuveen Tactical Market Opportunities Fund
Fund Allocation1
Exchange-Traded Funds | 43.1% | |||
Sovereign Debt | 5.4% | |||
Short-Term Investments | 51.3% | |||
Other2 | 0.2% |
Portfolio Allocation3,4
Long-Fixed Income | 47.0% | |||
Short-Fixed Income | (44.5)% | |||
Net Fixed Income | 2.5% | |||
Long Equity | 22.4% | |||
Short Equity | (14.6)% | |||
Net Equity | 7.8% | |||
Short Currency | (2.4)% |
Total Exposure5
Total Net Exposure | 7.9% | |||
Total Gross Exposure | 130.9% |
Top 5 Long Positions6
Australian 10-Year Bond Future | 13.2% | |||
Market Vectors High-Yield Municipal Index ETF | 7.1% | |||
PowerShares Financial Preferred Portfolio | 5.7% | |||
iShares iBoxx $ Investment Grade Corporate Bond | 4.4% | |||
Financial Select Sector SPDR Fund | 3.3% |
Top 5 Short Positions6
U.S. 2-Year Treasury Note Future | (21.4)% | |||
U.S. 5-Year Treasury Note Future | (13.6)% | |||
S&P 500 E-Mini Future | (10.9)% | |||
Euro-Bund Future | (6.8)% | |||
Russell 2000 Mini Index Future | (3.7)% |
1 | Fund Allocation reports the percentage breakdown of the Fund’s cash investments as shown in the Fund’s portfolio of investments. Each category is computed as a percentage of the Fund’s net assets. |
2 | Other assets less liabilities. |
3 | Portfolio Allocation reflects the investment exposure of the Fund by asset class investment category, including both cash positions and futures (derivative) positions. The table reflects the market value of long-term cash investments and the notional value of both long and short futures contracts as presented in the Fund’s portfolio of investments as a percentage of total investments. |
4 | Percentages are calculated based upon the market value of total investments as presented in the Fund’s portfolio of investments. |
5 | Net exposure provides an indication of the Fund’s directional exposure to the market at period end and reflects the value of the portfolio’s long positions minus the short positions across asset class investment categories. This is an indication of the Fund’s sensitivity to market movements. Gross exposure provides an indication of the total gross value of the Fund’s market investment exposure reflecting a summation of the absolute value of all long and short positions in the portfolio across asset class investment categories. This is an indication of the scale of the Fund’s total investment positions regardless of direction. |
6 | The top 5 long and short positions reflect the market value of long-term cash investments and the notional value of futures contracts as presented in the Fund’s portfolio of investments. |
Nuveen Investments | 19 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen International Select 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 (5/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||
Ending Account Value (10/31/13) | $ | 1,058.80 | $ | 1,055.40 | $ | 1,060.80 | $ | 1,018.05 | $ | 1,014.17 | $ | 1,018.95 | ||||||||||||
Expenses Incurred During Period | $ | 7.37 | $ | 11.35 | $ | 6.44 | $ | 7.22 | $ | 11.12 | $ | 6.31 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.42%, 2.19% and 1.24% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
20 | Nuveen Investments |
Nuveen Tactical Market Opportunities Fund1
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||
A Shares | C Shares | I Shares | A Shares | C Shares | I Shares | |||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||
Ending Account Value (10/31/13) | $ | 941.80 | $ | 938.70 | $ | 942.80 | $ | 1,019.31 | $ | 1,015.53 | $ | 1,020.57 | ||||||||||||
Expenses Incurred During Period | $ | 5.73 | $ | 9.38 | $ | 4.51 | $ | 5.96 | $ | 9.75 | $ | 4.69 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.17%, 1.92% and .92% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
1 | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of other funds in which the Fund invests. These underlying fees and expenses are not reflected in the expense ratios. Because these other funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. |
Nuveen Investments | 21 |
A special shareholder meeting was held in the offices of Nuveen Investments on October 18, 2013 for the Nuveen International Fund; at this meeting the shareholders were asked to approve a Plan of Reorganization.
International Fund | ||||
To approve an Agreement and Plan of Reorganization | ||||
For | 5,855,597 | |||
Against | 16,563 | |||
Abstain | 31,576 | |||
Total | 5,903,736 |
22 | Nuveen Investments |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Investment Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations, of changes in net assets, and the financial highlights present fairly, in all material respects, the financial position of Nuveen International Select Fund and Nuveen Tactical Market Opportunities Fund (each a series of the Nuveen Investment Funds, Inc., hereinafter referred to as the “Funds”) at October 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of the Funds for the years ended October 31, 2011 and prior were audited by other independent auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
December 27, 2013
Nuveen Investments | 23 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 92.2% | ||||||||||||||
COMMON STOCKS – 92.0% | ||||||||||||||
Argentina – 0.2% | ||||||||||||||
43,554 | YPF Sociedad Anonima | $ | 908,101 | |||||||||||
Australia – 1.8% | ||||||||||||||
22,039 | Asciano Group | 121,232 | ||||||||||||
90,434 | Aurizon Holdings | 409,420 | ||||||||||||
111,336 | DUET Group | 226,243 | ||||||||||||
636,725 | Incitec Pivot | 1,600,795 | ||||||||||||
10,320 | Macquarie Atlas Roads Group | 25,848 | ||||||||||||
45,456 | Rea Group Limited | 1,782,959 | ||||||||||||
105,581 | Seek Limited | 1,296,274 | ||||||||||||
281,805 | Spark Infrastructure Group | 451,461 | ||||||||||||
218,275 | Sydney Airport | 864,411 | ||||||||||||
198,176 | Transurban Group | 1,329,877 | ||||||||||||
Total Australia | 8,108,520 | |||||||||||||
Austria – 0.0% | ||||||||||||||
4,026 | Oesterreichische Post | 189,217 | ||||||||||||
Belgium – 0.3% | ||||||||||||||
1,409 | Elia System Operator | 64,471 | ||||||||||||
21,177 | Ucb | 1,392,228 | ||||||||||||
Total Belgium | 1,456,699 | |||||||||||||
Bermuda – 0.2% | ||||||||||||||
1,424,415 | Biosensors International Group | 1,077,886 | ||||||||||||
Brazil – 3.5% | ||||||||||||||
23,713 | Alupar Investimento | 178,890 | ||||||||||||
314,843 | Banco do Brasil | 4,181,136 | ||||||||||||
171,900 | BB Seguridade Participacoes | 1,877,686 | ||||||||||||
120,403 | Cielo S.A. | 3,654,765 | ||||||||||||
30,800 | Companhia de Bebidas das Americas, ADR | 1,145,760 | ||||||||||||
173,242 | Companhia de Concessoes Rodoviarias | 1,440,719 | ||||||||||||
4,966 | Companhia de Saneamento Basico do Estado de Sao Paulo, ADR | 52,689 | ||||||||||||
3,342 | Companhia de Saneamento de Minas Gerais | 53,974 | ||||||||||||
8,522 | CPFL Energias Renovaveis, (2) | 50,405 | ||||||||||||
52,500 | Natura Cosmeticos | 1,049,906 | ||||||||||||
75,795 | Souza Cruz | 819,799 | ||||||||||||
76,900 | Vale, ADR | 1,231,169 | ||||||||||||
26,319 | Wilson Sons | 328,958 | ||||||||||||
Total Brazil | 16,065,856 | |||||||||||||
Canada – 4.4% | ||||||||||||||
13,104 | Agrium | 1,118,033 |
24 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Canada (continued) | ||||||||||||||
4,003 | AltaGas | $ | 148,195 | |||||||||||
26,100 | Canadian Energy Services & Technology | 469,858 | ||||||||||||
10,900 | Canadian Energy Services & Technology | 196,418 | ||||||||||||
56,250 | Canadian Natural Resources | 1,785,175 | ||||||||||||
4,684 | Canadian Utilities, Class A | 172,104 | ||||||||||||
17,248 | Cenovus Energy | 512,486 | ||||||||||||
14,600 | Dollarama, Inc. | 1,254,929 | ||||||||||||
53,823 | Element Financial | 687,080 | ||||||||||||
43,803 | Enbridge | 1,900,612 | ||||||||||||
55,717 | EnCana | 998,220 | ||||||||||||
6,086 | Fortis | 189,296 | ||||||||||||
23,269 | Gibson Energy | 571,543 | ||||||||||||
3,487 | Keyera | 206,347 | ||||||||||||
190,680 | Kinross Gold | 969,265 | ||||||||||||
104,200 | Pacific Rubiales Energy | 2,155,655 | ||||||||||||
202,570 | Talisman Energy | 2,525,688 | ||||||||||||
22,288 | TransCanada | 1,005,412 | ||||||||||||
109,700 | Trinidad Drilling | 1,062,648 | ||||||||||||
14,131 | Valeant Pharmaceuticals International, (2) | 1,493,929 | ||||||||||||
75,476 | Yamana Gold | 749,477 | ||||||||||||
Total Canada | 20,172,370 | |||||||||||||
Cayman Islands – 2.2% | ||||||||||||||
14,192 | 58 Com, Inc., (2) | 342,311 | ||||||||||||
14,832 | Baidu Inc., ADR, (2) | 2,386,470 | ||||||||||||
149,000 | China Mengniu Dair | 655,346 | ||||||||||||
15,484 | Ctrip.com International, ADR, (2) | 840,007 | ||||||||||||
72,953 | Melco Crown Entmt Ltd, (2) | 2,419,121 | ||||||||||||
164,800 | Sands China Ltd | 1,171,221 | ||||||||||||
55,071 | Trina Solar Limited, ADR, (2) | 807,892 | ||||||||||||
415,600 | Wynn Macau | 1,594,750 | ||||||||||||
Total Cayman Islands | 10,217,118 | |||||||||||||
Chile – 0.1% | ||||||||||||||
209,747 | Aguas Andinas, Class A | 141,506 | ||||||||||||
5,048 | Empresa Nacional de Electrcidad, ADR | 227,665 | ||||||||||||
12,672 | Enersis, ADR | 209,088 | ||||||||||||
Total Chile | 578,259 | |||||||||||||
China – 1.4% | ||||||||||||||
4,380,350 | China Construction Bank, Class H | 3,401,226 | ||||||||||||
33,549 | ENN Energy Holdings | 198,836 | ||||||||||||
18,700 | NetEase.com, ADR | 1,262,437 | ||||||||||||
18,900 | Tencent Holdings | 1,031,663 | ||||||||||||
172,600 | Weichai Power, Class H | 691,246 | ||||||||||||
Total China | 6,585,408 | |||||||||||||
Denmark – 0.7% | ||||||||||||||
10,048 | Novo Nordisk, Class B | 1,671,847 |
Nuveen Investments | 25 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Denmark (continued) | ||||||||||||||
50,931 | Vestas Wind Systems A/S | $ | 1,367,555 | |||||||||||
Total Denmark | 3,039,402 | |||||||||||||
Egypt – 0.2% | ||||||||||||||
138,588 | Commercial International Bank, Reg S | 801,039 | ||||||||||||
Finland – 0.5% | ||||||||||||||
293,424 | Nokia, ADR, (2) | 2,238,825 | ||||||||||||
France – 4.4% | ||||||||||||||
4,180 | Aeroports de Paris | 446,655 | ||||||||||||
437,440 | Alcatel-lucent | 1,673,118 | ||||||||||||
30,380 | BNP Paribas | 2,249,698 | ||||||||||||
65,854 | Carrefour | 2,412,379 | ||||||||||||
17,800 | Criteo SA, (2) | 628,518 | ||||||||||||
38,420 | DANONE | 2,849,250 | ||||||||||||
5,526 | Eurofins Scientific | 1,515,221 | ||||||||||||
4,769 | GDF Suez | 118,754 | ||||||||||||
194,909 | Groupe Eurotunnel | 1,890,049 | ||||||||||||
37,283 | Jc Decaux Sa | 1,497,881 | ||||||||||||
6,346 | L’oreal | 1,086,948 | ||||||||||||
3,983 | Rubis | 248,927 | ||||||||||||
10,110 | Sanofi-Aventis | 1,078,111 | ||||||||||||
16,474 | Suez Environnement | 287,536 | ||||||||||||
23,340 | Total SA | 1,434,448 | ||||||||||||
12,930 | Vinci | 829,422 | ||||||||||||
Total France | 20,246,915 | |||||||||||||
Germany – 7.7% | ||||||||||||||
27,284 | Adidas | 3,114,742 | ||||||||||||
13,360 | Allianz | 2,247,497 | ||||||||||||
29,898 | CANCOM SE | 1,148,003 | ||||||||||||
127,277 | Commerzbank Ag | 1,636,347 | ||||||||||||
48,113 | Daimler | 3,948,283 | ||||||||||||
57,182 | Deutsche Boerse | 4,305,089 | ||||||||||||
18,897 | Duerr | 1,657,474 | ||||||||||||
79,461 | E.ON | 1,451,641 | ||||||||||||
7,387 | Fraport Frankfurt Airport | 572,397 | ||||||||||||
8,078 | Fresenius SE & Co KGaA | 1,049,961 | ||||||||||||
19,036 | Henkel KGAA | 2,059,944 | ||||||||||||
10,042 | Osram Licht, (2) | 520,364 | ||||||||||||
25,597 | Siemens | 3,273,174 | ||||||||||||
128,078 | Sky Deutschland Ag | 1,264,242 | ||||||||||||
38,771 | Symrise | 1,643,468 | ||||||||||||
45,318 | United Internet | 1,790,544 | ||||||||||||
57,753 | Voxeljet Ag, (2) | 1,968,222 | ||||||||||||
42,254 | Wirecard | 1,540,687 | ||||||||||||
Total Germany | 35,192,079 |
26 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Hong Kong – 2.4% | ||||||||||||||
16,984 | Beijing Enterprises Holdings | $ | 139,434 | |||||||||||
113,363 | Cheung Kong Holdings | 1,772,165 | ||||||||||||
19,703 | Cheung Kong Infrastructure Holdings | 137,105 | ||||||||||||
431,009 | China Everbright International | 429,730 | ||||||||||||
140,113 | China Merchants Holdings International | 496,983 | ||||||||||||
43,511 | China Mobile Limited | 2,263,442 | ||||||||||||
6,269 | China Resources Gas Group | 16,212 | ||||||||||||
697,000 | CNOOC | 1,431,219 | ||||||||||||
7,518 | CNOOC, ADR | 1,520,967 | ||||||||||||
380,518 | COSCO Pacific | 554,605 | ||||||||||||
99,618 | Guangdong Investment | 85,703 | ||||||||||||
155,493 | Hong Kong & China Gas | 363,412 | ||||||||||||
1,270,000 | Huabao International Holdings | 556,946 | ||||||||||||
1,478,000 | Labixiaoxin Snacks | 768,263 | ||||||||||||
79,146 | MTR | 306,763 | ||||||||||||
8,644 | Power Assets Holdings | 72,024 | ||||||||||||
48,732 | Sinopec Kantons Holdings | 44,439 | ||||||||||||
203,570 | Towngas China | 200,603 | ||||||||||||
Total Hong Kong | 11,160,015 | |||||||||||||
Hungary – 0.3% | ||||||||||||||
70,430 | Otp Bank Plc | 1,462,166 | ||||||||||||
India – 1.1% | ||||||||||||||
46,777 | Axis Bank | 930,669 | ||||||||||||
99,950 | Bank of India | 341,380 | ||||||||||||
201,640 | Bharat Heavy Electricals | 462,963 | ||||||||||||
3,506 | GAIL India, GDR | 121,939 | ||||||||||||
116,297 | Jindal Steel & Power | 453,890 | ||||||||||||
95,573 | Punjab National Bank | 846,635 | ||||||||||||
55,011 | Tata Consultancy Services | 1,890,586 | ||||||||||||
Total India | 5,048,062 | |||||||||||||
Indonesia – 1.3% | ||||||||||||||
1,263,500 | Astra International | 745,378 | ||||||||||||
2,304,065 | Bank of Mandiri | 1,757,814 | ||||||||||||
170,931 | Jasa Marga | 79,609 | ||||||||||||
4,700 | Sarana Menara Nusa, (2) | 1,115 | ||||||||||||
489,300 | Semen Gresik Persero | 622,884 | ||||||||||||
57,700 | Tambang Batubara Bukit Asam | 62,192 | ||||||||||||
48,200 | Telekomunikasi Indonesia, ADR | 1,964,632 | ||||||||||||
539,019 | United Tractors | 836,800 | ||||||||||||
Total Indonesia | 6,070,424 | |||||||||||||
Ireland – 0.9% | ||||||||||||||
42,392 | Covidien | 2,717,751 | ||||||||||||
142,474 | Grafton Group PLC | 1,359,245 | ||||||||||||
Total Ireland | 4,076,996 |
Nuveen Investments | 27 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Israel – 0.3% | ||||||||||||||
32,947 | CaesarStone Sdot Yam, (2) | $ | 1,389,375 | |||||||||||
Italy – 1.8% | ||||||||||||||
19,474 | Atlantia | 427,021 | ||||||||||||
900,009 | Banca Intesa | 2,237,468 | ||||||||||||
17,618 | Cosmo Pharmaceutic | 1,229,095 | ||||||||||||
54,208 | Gemina, (2) | 131,746 | ||||||||||||
61,903 | Hera | 124,981 | ||||||||||||
271,015 | Mediaset | 1,358,552 | ||||||||||||
80,195 | Snam Rete Gas | 413,328 | ||||||||||||
8,084 | Societa Iniziative Autostradali e Servizi | 84,735 | ||||||||||||
44,105 | Terna-Rete Elettrica Nationale | 218,576 | ||||||||||||
16,566 | World Duty Free, (2) | 183,539 | ||||||||||||
51,641 | Yoox Spa | 1,858,069 | ||||||||||||
Total Italy | 8,267,110 | |||||||||||||
Japan – 12.0% | ||||||||||||||
159,256 | AMADA | 1,363,709 | ||||||||||||
29,934 | Digital Garage | 786,631 | ||||||||||||
128,400 | INPEX | 1,480,785 | ||||||||||||
52,761 | Japan Airport Terminal | 1,273,282 | ||||||||||||
79,600 | Japan Exchange Group | 1,835,180 | ||||||||||||
26,700 | Japan Tobacco | 963,948 | ||||||||||||
23,861 | Kamigumi | 206,991 | ||||||||||||
47,000 | Kanamoto Co Ltd | 1,265,219 | ||||||||||||
54,100 | KOMATSU | 1,177,403 | ||||||||||||
158,987 | Kyowa Hakko Kirin | 1,751,072 | ||||||||||||
334,000 | Mazda Motor Corp. | 1,494,559 | ||||||||||||
153,615 | Mitsubishi | 3,096,358 | ||||||||||||
9,202 | Mitsubishi Logistics | 127,179 | ||||||||||||
91,780 | Mitsui Sumitomo Insurance Group | 2,356,804 | ||||||||||||
35,600 | Monotaro Co. ltd | 833,068 | ||||||||||||
30,800 | Next Co. Ltd | 931,862 | ||||||||||||
16,200 | Nidec | 1,570,080 | ||||||||||||
12,514 | Nintendo | 1,402,464 | ||||||||||||
88,630 | NKSJ Holdings | 2,278,619 | ||||||||||||
26,500 | Oisix, Inc. | 1,042,968 | ||||||||||||
108,400 | ORIX | 1,858,664 | ||||||||||||
19,077 | Osaka Gas | 80,126 | ||||||||||||
22,000 | Sanrio Co Ltd | 1,203,702 | ||||||||||||
16,162 | SMC | 3,744,233 | ||||||||||||
23,500 | Softbank | 1,744,635 | ||||||||||||
29,008 | Sugi Holdings | 1,211,002 | ||||||||||||
225,017 | Sumitomo Mitsui Financial Group | 2,182,665 | ||||||||||||
650,026 | Sumitomo Mitsui Trust | 3,186,337 | ||||||||||||
31,000 | Sumitomo Realty & Development | 1,458,100 | ||||||||||||
131,370 | Suzuki Motor | 3,287,924 |
28 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Japan (continued) | ||||||||||||||
618,841 | The Bank of Yokohama | $ | 3,398,497 | |||||||||||
85,950 | THK | 1,865,324 | ||||||||||||
106,322 | Tokyo Gas | 575,240 | ||||||||||||
30,500 | Unicharm | 1,951,032 | ||||||||||||
Total Japan | 54,985,662 | |||||||||||||
Jersey – 0.6% | ||||||||||||||
247,344 | Glencore Xstrata | 1,348,423 | ||||||||||||
449,447 | Regus | 1,478,051 | ||||||||||||
Total Jersey | 2,826,474 | |||||||||||||
Luxembourg – 0.4% | ||||||||||||||
15,868 | Oriflame Cosmetics, SDR | 501,993 | ||||||||||||
11,967 | SES | 348,363 | ||||||||||||
48,060 | Subsea 7 S.A. | 1,016,412 | ||||||||||||
Total Luxembourg | 1,866,768 | |||||||||||||
Malaysia – 0.3% | ||||||||||||||
38,500 | British American Tobacco | 774,746 | ||||||||||||
34,616 | Petronas Gas | 268,981 | ||||||||||||
98,690 | Westports Holdings, (2) | 80,377 | ||||||||||||
Total Malaysia | 1,124,104 | |||||||||||||
Mexico – 1.4% | ||||||||||||||
4,492 | Grupo Aeroportuario del Centro Norte, ADR | 122,137 | ||||||||||||
4,745 | Grupo Aeroportuario del Sureste, ADR | 564,702 | ||||||||||||
231,416 | Grupo Mexico, Series B | 733,415 | ||||||||||||
102,695 | Grupo Televisa, ADR | 3,126,037 | ||||||||||||
65,312 | Infraestructura En | 258,550 | ||||||||||||
318,800 | Kimberly-Clark de Mexico, Series A | 969,307 | ||||||||||||
82,701 | OHL Mexico | 212,216 | ||||||||||||
17,490 | Promotora Y Operad | 177,604 | ||||||||||||
Total Mexico | 6,163,968 | |||||||||||||
Netherlands – 2.3% | ||||||||||||||
13,914 | Asml Holding NV | 1,320,915 | ||||||||||||
32,989 | European Aeronautic Defence and Space | 2,266,871 | ||||||||||||
44,011 | Heineken | 3,041,588 | ||||||||||||
14,095 | Koninklijke Vopak | 867,792 | ||||||||||||
45,109 | Nxp Semiconductors NV, (2) | 1,899,991 | ||||||||||||
26,573 | Oci N.v. | 1,021,775 | ||||||||||||
Total Netherlands | 10,418,932 | |||||||||||||
New Zealand – 0.3% | ||||||||||||||
238,903 | Auckland International Airport | 676,857 | ||||||||||||
92,693 | Infratil | 191,412 | ||||||||||||
33,868 | Port of Tauranga | 386,056 | ||||||||||||
18,620 | Vector | 40,142 | ||||||||||||
Total New Zealand | 1,294,467 | |||||||||||||
Norway – 0.9% | ||||||||||||||
7,507 | Hafslund, Class B | 57,125 |
Nuveen Investments | 29 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Norway (continued) | ||||||||||||||
106,674 | Norsk Hydro | $ | 476,651 | |||||||||||
121,226 | Opera Software | 1,466,185 | ||||||||||||
33,705 | Schibsted Asa | 2,060,896 | ||||||||||||
Total Norway | 4,060,857 | |||||||||||||
Philippines – 0.9% | ||||||||||||||
1,492,000 | Ayala Land, Inc. | 1,016,880 | ||||||||||||
599,105 | International Container Terminal Services | 1,441,956 | ||||||||||||
143,019 | Manila Water | 82,746 | ||||||||||||
26,100 | Philippine Long Distance Telephone, ADR | 1,726,516 | ||||||||||||
Total Philippines | 4,268,098 | |||||||||||||
Portugal – 0.0% | ||||||||||||||
21,337 | Redes Energeticas Nacionais | 64,169 | ||||||||||||
Russia – 2.4% | ||||||||||||||
732,700 | Alrosa Zao | 849,910 | ||||||||||||
216,463 | Gazprom OAO, ADR | 2,026,094 | ||||||||||||
12,036 | LUKOIL, ADR | 789,562 | ||||||||||||
12,471 | Magnit, GDR, 144A, (3) | 672,384 | ||||||||||||
113,150 | Mobile TeleSystems, ADR | 2,579,820 | ||||||||||||
1,195,596 | Sberbank | 3,830,141 | ||||||||||||
Total Russia | �� | 10,747,911 | ||||||||||||
Singapore – 0.7% | ||||||||||||||
427,990 | CitySpring Infrastructure Trust | 165,380 | ||||||||||||
294,183 | ComfortDelGro | 455,887 | ||||||||||||
2,665,019 | Golden Agri-Resources | 1,287,241 | ||||||||||||
372,402 | Hutchison Port Holdings Trust | 271,853 | ||||||||||||
105,410 | Hyflux | 98,435 | ||||||||||||
103,364 | K-Green Trust | 85,291 | ||||||||||||
132,606 | Parkway Life, REIT | 259,405 | ||||||||||||
45,788 | SembCorp Industries | 196,097 | ||||||||||||
77,724 | Singapore Airport Terminal Services | 212,737 | ||||||||||||
331,808 | Singapore Post | 349,918 | ||||||||||||
Total Singapore | 3,382,244 | |||||||||||||
South Africa – 2.8% | ||||||||||||||
59,371 | Bidvest Group | 1,583,286 | ||||||||||||
45,655 | Imperial Holdings | 970,062 | ||||||||||||
64,928 | MTN Group | 1,290,572 | ||||||||||||
51,319 | Nedbank Group | 1,114,428 | ||||||||||||
190,734 | PPC | 603,242 | ||||||||||||
186,377 | Sanlam | 1,000,323 | ||||||||||||
102,643 | Shoprite Holdings | 1,879,296 | ||||||||||||
58,967 | Standard Bank Group | 749,045 | ||||||||||||
27,842 | Tiger Brands | 815,894 | ||||||||||||
89,321 | Truworths International | 854,172 | ||||||||||||
85,763 | Vodacom Group | 982,467 | ||||||||||||
109,657 | Woolworths Holdings | 824,715 | ||||||||||||
Total South Africa | 12,667,502 |
30 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
South Korea – 3.4% | ||||||||||||||
7,412 | Hyundai Mobis | $ | 2,092,759 | |||||||||||
48,430 | KB Financial Group | 1,917,568 | ||||||||||||
188,192 | Korea Life Insurance | 1,259,640 | ||||||||||||
22,117 | KT&G | 1,615,901 | ||||||||||||
2,727 | Samsung Electronics, GDR | 3,766,255 | ||||||||||||
66,896 | Shinhan Financial Group, ADR | 2,923,054 | ||||||||||||
26,520 | Sk Hynix, Inc. | 798,788 | ||||||||||||
21,601 | Woongjin Coway | 1,234,052 | ||||||||||||
Total South Korea | 15,608,017 | |||||||||||||
Spain – 0.6% | ||||||||||||||
18,689 | Abertis Infraestructuras | 400,922 | ||||||||||||
37,606 | Ferrovial | 717,134 | ||||||||||||
50,534 | Grifols SA | 1,524,105 | ||||||||||||
Total Spain | 2,642,161 | |||||||||||||
Sweden – 2.2% | ||||||||||||||
17,984 | Arcam AB | 2,422,826 | ||||||||||||
175,260 | Ericsson | 2,092,015 | ||||||||||||
82,860 | Investment Kinnevik, Class B | 3,053,521 | ||||||||||||
186,167 | Seamless Distributors | 1,292,816 | ||||||||||||
130,950 | Vostok Nafta Investment, SDR | 1,065,981 | ||||||||||||
Total Sweden | 9,927,159 | |||||||||||||
Switzerland – 5.1% | ||||||||||||||
1,356 | Flughafen Zuerich | 751,714 | ||||||||||||
58,482 | Foster Wheeler, (2) | 1,578,429 | ||||||||||||
121,606 | Meyer Burger Techn | 1,427,348 | ||||||||||||
50,868 | Nestle | 3,672,071 | ||||||||||||
69,515 | Noble | 2,620,716 | ||||||||||||
49,799 | Novartis | 3,866,578 | ||||||||||||
23,973 | Roche Holding | 6,636,929 | ||||||||||||
4,332 | Siegfried Hldg Ag | 714,242 | ||||||||||||
110,745 | UBS | 2,143,255 | ||||||||||||
Total Switzerland | 23,411,282 | |||||||||||||
Taiwan – 0.9% | ||||||||||||||
435,078 | Hon Hai Precision Industry | 1,103,262 | ||||||||||||
854,959 | Taiwan Semiconductor Manufacturing | 3,186,508 | ||||||||||||
Total Taiwan | 4,289,770 | |||||||||||||
Thailand – 0.8% | ||||||||||||||
166,100 | Airports of Thailand NVDR | 1,131,347 | ||||||||||||
535,100 | CP ALL | 674,785 | ||||||||||||
168,877 | PTT Exploration and Production Public Company | 914,242 | ||||||||||||
69,600 | Siam Cement | 983,904 | ||||||||||||
Total Thailand | 3,704,278 | |||||||||||||
Turkey – 1.2% | ||||||||||||||
249,579 | Akbank T.A.S. | 980,188 | ||||||||||||
302,456 | Koc Holding | 1,484,818 |
Nuveen Investments | 31 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Turkey (continued) | ||||||||||||||
77,600 | Turkcell Iletisim Hizmetleri, ADR, (2) | $ | 1,213,664 | |||||||||||
155,030 | Turkiye Garanti Bankasi | 624,391 | ||||||||||||
504,895 | Turkiye Is Bankasi, Class C | 1,386,011 | ||||||||||||
Total Turkey | 5,689,072 | |||||||||||||
United Kingdom – 12.5% | ||||||||||||||
55,247 | Anglo American | 1,315,468 | ||||||||||||
19,869 | Aon | 1,571,439 | ||||||||||||
126,399 | ARM Holdings | 1,997,310 | ||||||||||||
120,272 | Ashtead Group | 1,263,139 | ||||||||||||
20,789 | ASOS | 1,890,000 | ||||||||||||
33,254 | Aveva Group | 1,378,852 | ||||||||||||
573,967 | Blinkx | 1,509,301 | ||||||||||||
39,210 | BP, ADR | 1,823,265 | ||||||||||||
150,424 | Btg | 1,012,040 | ||||||||||||
36,545 | Centrica | 207,081 | ||||||||||||
259,494 | Crest Nicholson Holdings | 1,610,213 | ||||||||||||
99,699 | Diageo | 3,176,390 | ||||||||||||
488,215 | Foxtons Group Plc | 2,495,206 | ||||||||||||
145,534 | GlaxoSmithKline | 3,835,121 | ||||||||||||
127,268 | Great Portland Estates, REIT | 1,169,281 | ||||||||||||
61,206 | Hargreaves Lansdown | 1,167,847 | ||||||||||||
575,681 | Hays | 1,149,202 | ||||||||||||
306,449 | Howden Joinery Group | 1,585,632 | ||||||||||||
2,045,665 | Lloyds Banking Group | 2,543,018 | ||||||||||||
35,303 | MegaFon OAO, GDR | 1,272,838 | ||||||||||||
1,678,779 | Monitise Plc | 1,493,935 | ||||||||||||
27,097 | National Grid, ADR | 1,705,214 | ||||||||||||
193,058 | Ocado Group | 1,343,454 | ||||||||||||
27,314 | Pennon Group | 298,248 | ||||||||||||
169,825 | Perform Group | 1,524,877 | ||||||||||||
111,328 | Prudential | 2,283,075 | ||||||||||||
35,039 | Rightmove | 1,489,945 | ||||||||||||
245,293 | Rps Group | 1,140,587 | ||||||||||||
64,073 | Shanks Group | 108,386 | ||||||||||||
1,022 | SSE | 23,204 | ||||||||||||
19,830 | Stagecoach Group | 111,921 | ||||||||||||
113,948 | Standard Chartered | 2,739,670 | ||||||||||||
22,295 | United Utilities Group | 251,845 | ||||||||||||
64,441 | Vodafone Group, ADR | 2,372,718 | ||||||||||||
25,856 | Whitbread | 1,423,247 | ||||||||||||
82,914 | Willis Group Holdings | 3,736,934 | ||||||||||||
69,706 | WPP | 1,480,919 | ||||||||||||
Total United Kingdom | 57,500,822 | |||||||||||||
United States – 4.6% | ||||||||||||||
11,616 | American Tower, Class A | 921,730 | ||||||||||||
14,105 | American Water Works | 604,681 |
32 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
United States (continued) | ||||||||||||||
2,148 | Aqua America | $ | 54,080 | |||||||||||
10,230 | Brookfield Infrastructure Partners | 402,755 | ||||||||||||
38,027 | CenterPoint Energy | 935,464 | ||||||||||||
27,117 | CMS Energy | 744,633 | ||||||||||||
7,407 | Connecticut Water Service | 237,394 | ||||||||||||
5,106 | Corrections Corporation of America, REIT | 188,922 | ||||||||||||
33,677 | Covanta Holding | 578,234 | ||||||||||||
5,392 | Crown Castle International | 409,900 | ||||||||||||
2,199 | CyrusOne, REIT | 42,859 | ||||||||||||
17,809 | Dominion Resources | 1,135,324 | ||||||||||||
1,507 | DTE Energy | 104,194 | ||||||||||||
2,075 | Edison International | 101,737 | ||||||||||||
7,147 | Enbridge Energy Management, (2) | 203,832 | ||||||||||||
2,439 | ITC Holdings | 245,339 | ||||||||||||
27,669 | Kinder Morgan | 976,992 | ||||||||||||
4,893 | Laclede Group | 230,314 | ||||||||||||
1,739 | Magellan Midstream Partners | 104,410 | ||||||||||||
543 | Middlesex Water Company | 11,256 | ||||||||||||
3,552 | NextEra Energy | 301,032 | ||||||||||||
15,285 | NiSource | 481,783 | ||||||||||||
14,946 | Northeast Utilities | 641,034 | ||||||||||||
5,191 | OGE Energy | 191,548 | ||||||||||||
1,384 | Oiltanking Partners | 79,718 | ||||||||||||
7,108 | ONEOK | 401,602 | ||||||||||||
4,599 | Pattern Energy Group, Inc. | 104,305 | ||||||||||||
9,079 | PG&E | 379,956 | ||||||||||||
24,901 | Philip Morris International | 2,219,177 | ||||||||||||
10,129 | Piedmont Natural Gas | 345,804 | ||||||||||||
1,814 | Pinnacle West Capital | 101,638 | ||||||||||||
1,756 | Portland General Electric | 50,397 | ||||||||||||
3,482 | Qts Rlty Tr., Inc., (2) | 74,793 | ||||||||||||
3,218 | Questar | 76,138 | ||||||||||||
7,040 | Rose Rock Midstream | 245,978 | ||||||||||||
14,866 | Schlumberger | 1,393,243 | ||||||||||||
6,477 | Sempra Energy | 590,314 | ||||||||||||
373 | SJW | 10,530 | ||||||||||||
3,592 | Southern | 146,949 | ||||||||||||
36,769 | Spectra Energy | 1,307,873 | ||||||||||||
459 | Tesoro Logistics | 24,648 | ||||||||||||
1,589 | UIL Holdings | 61,208 | ||||||||||||
2,222 | Union Pacific | 336,411 | ||||||||||||
2,406 | Unitil | 72,709 | ||||||||||||
14,685 | Waste Connections | 627,637 | ||||||||||||
8,780 | Westar Energy | 277,536 | ||||||||||||
6,695 | Western Gas Partners | 402,436 |
Nuveen Investments | 33 |
Portfolio of Investments October 31, 2013
Nuveen International Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||||||||
United States (continued) | ||||||||||||||||||||
44,402 | Williams | $ | 1,585,596 | |||||||||||||||||
4,222 | Wisconsin Energy | 177,831 | ||||||||||||||||||
Total United States | 20,943,874 | |||||||||||||||||||
Total Common Stocks (cost $352,298,776) | 421,939,433 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
COMMON STOCK RIGHTS – 0.0% | ||||||||||||||||||||
Italy – 0.0% | ||||||||||||||||||||
61,903 | Hera Rights | $ | 1,118 | |||||||||||||||||
Total Common Stock Rights (cost $1,246) | 1,118 | |||||||||||||||||||
MASTER LIMITED PARTNERSHIPS (MLP) & MLP AFFILIATES – 0.2% | ||||||||||||||||||||
United States – 0.2% | ||||||||||||||||||||
3,516 | Dcp Midstream Partners LP | 170,807 | ||||||||||||||||||
1,611 | Enterprise Products Partners LP | 101,944 | ||||||||||||||||||
3,352 | Plains All American Pipeline LP | 171,689 | ||||||||||||||||||
19,404 | Plains GP Holdings LP, (2) | 432,515 | ||||||||||||||||||
1,362 | Qep Midstream Partners LP, (2) | 31,217 | ||||||||||||||||||
Total United States | 908,172 | |||||||||||||||||||
Total Master Limited Partnerships (MLP) & MLP Affiliates (cost $893,855) | 908,172 | |||||||||||||||||||
Total Long-Term Investments (cost $353,193,877) | 422,848,723 | |||||||||||||||||||
Shares/ Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 8.1% | ||||||||||||||||||||
Money Market Funds – 5.4% | ||||||||||||||||||||
24,826,723 | State Street Institutional Liquid Reserves Fund | 0.070 | %(5) | N/A | N/A | $ | 24,826,723 | |||||||||||||
U.S. Government and Agency Obligations – 2.7% | ||||||||||||||||||||
$ | 2,500 | U.S. Treasury Bills, (6) | 0.000 | % | 1/23/14 | Aaa | 2,499,785 | |||||||||||||
10,000 | U.S. Treasury Bills, (6) | 0.000 | % | 2/13/14 | Aaa | 9,998,560 | ||||||||||||||
$ | 12,500 | Total U.S. Government and Agency Obligations | 12,498,345 | |||||||||||||||||
|
| |||||||||||||||||||
Total Short-Term Investments (cost $37,324,782) | 37,325,068 | |||||||||||||||||||
Total Investments (cost $390,518,659) – 100.3% | 460,173,791 | |||||||||||||||||||
Other Assets Less Liabilities – (0.3)% | (1,437,816 | ) | ||||||||||||||||||
Net Assets – 100% | $ | 458,735,975 |
Investments in Derivatives as of October 31, 2013
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Unrealized Appreciation (Depreciation) | |||||||||||||||
Amsterdam Index | Long | 35 | 11/13 | $ | 3,715,700 | $ | 90,678 | |||||||||||||
BIST 30 Index | Short | (1,499 | ) | 12/13 | (7,148,644 | ) | 259,716 | |||||||||||||
DAX Index | Short | (12 | ) | 12/13 | (3,679,176 | ) | (85,052 | ) | ||||||||||||
E-Mini MSCI Emerging Markets Index | Long | 60 | 12/13 | 3,071,700 | 11,875 | |||||||||||||||
Euro STOXX 50 | Long | 418 | 12/13 | 17,361,095 | 1,048,692 | |||||||||||||||
FTSE 100 Index | Long | 187 | 12/13 | 20,114,636 | 551,900 | |||||||||||||||
FTSE Bursa Malaysia KLCI Index | Short | (81 | ) | 11/13 | (2,320,483 | ) | 19,471 | |||||||||||||
FTSE JSE Top 40 | Short | (182 | ) | 12/13 | (7,409,628 | ) | (438,176 | ) | ||||||||||||
FTSE MIB Index | Short | (33 | ) | 12/13 | (4,333,852 | ) | (45,280 | ) | ||||||||||||
Hang Seng China Enterprises Index | Long | 233 | 11/13 | 15,983,626 | 607,368 |
34 | Nuveen Investments |
Investments in Derivatives as of October 31, 2013 (continued)
Futures Contracts outstanding (continued):
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Unrealized Appreciation (Depreciation) | |||||||||||||||
IBEX 35 Index | Short | (33 | ) | 11/13 | $ | (4,417,280 | ) | $ | (67,696 | ) | ||||||||||
MSCI Taiwan Index | Long | 78 | 11/13 | 2,323,620 | 26,869 | |||||||||||||||
NASDAQ 100 E-Mini | Short | (129 | ) | 12/13 | (8,692,020 | ) | (540,129 | ) | ||||||||||||
Nikkei 225 Index | Long | 262 | 12/13 | 18,949,150 | 137,216 | |||||||||||||||
OMX Stockholm 30 Index | Long | 233 | 11/13 | 4,612,322 | 64,446 | |||||||||||||||
Russell 2000 Mini Index | Short | (59 | ) | 12/13 | (6,477,020 | ) | (304,648 | ) | ||||||||||||
S&P 500 Index | Short | (17 | ) | 12/13 | (7,441,750 | ) | (334,968 | ) | ||||||||||||
S&P Midcap 400 E-Mini | Short | (70 | ) | 12/13 | (9,004,800 | ) | (422,602 | ) | ||||||||||||
S&P TSX 60 Index | Long | 79 | 12/13 | 11,609,246 | 495,244 | |||||||||||||||
SET50 Index | Short | (76 | ) | 12/13 | (2,409,292 | ) | (34,440 | ) | ||||||||||||
SGX S&P CNX Nifty | Short | (642 | ) | 11/13 | (8,118,732 | ) | (42,372 | ) | ||||||||||||
SPI 200 | Long | 140 | 12/13 | 17,916,316 | 68,855 | |||||||||||||||
STOXX 600 Utilities | Short | (450 | ) | 12/13 | (5,899,105 | ) | (48,347 | ) | ||||||||||||
U.S. Dollar Index | Short | (492 | ) | 12/13 | (39,489,396 | ) | 526,842 | |||||||||||||
$ | (1,183,767 | ) | $ | 1,545,462 |
* | The aggregate Notional Amount at Value of long and short positions is $115,657,411 and $(116,841,178), respectively. |
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) | For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(4) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(5) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(6) | Investment, or portion of investment, segregated as collateral for investments in derivatives. |
N/A | Not applicable. |
Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
ADR | American Depositary Receipt |
BIST | Borsa Istanbul |
CNX | Credit Rating Information Services of India Limited |
DAX | Deutscher Aktien Index |
FTSE | Financial Times Stock Exchange |
GDR | Global Depositary Receipt |
IBEX | International Business Exchange |
JSE | Johannesburg Stock Exchange |
KLCI | Kuala Lumpur Composite Index |
MIB | Milano Italia Borsa |
MSCI | Morgan Stanley Capital International Inc. |
NASDAQ | National Association of Securities Dealers Automated Quotations |
NVDR | Non-Voting Depository Receipt |
REIT | Real Estate Investment Trust |
S&P | Standard & Poor’s |
SDR | Swedish Depositary Receipt |
SET | Stock Exchange of Thailand |
SGX | Singapore Exchange Limited |
SPI | Swiss Performance Index |
TSX | Toronto Stock Exchange |
See accompanying notes to financial statements.
Nuveen Investments | 35 |
Portfolio of Investments October 31, 2013
Nuveen Tactical Market Opportunities Fund
Shares | Description (1), (2) | Value | ||||||||||||||||||
LONG-TERM INVESTMENTS – 48.5% | ||||||||||||||||||||
EXCHANGE-TRADED FUNDS – 43.1% | ||||||||||||||||||||
Equity Funds – 17.8% | ||||||||||||||||||||
22,100 | Consumer Staples Select Sector SPDR Fund | $ | 935,935 | |||||||||||||||||
33,800 | Energy Select Sector SPDR Fund | 2,919,982 | ||||||||||||||||||
226,000 | Financial Select Sector SPDR Fund | 4,646,560 | ||||||||||||||||||
31,500 | Health Care Select Sector SPDR Fund | 1,661,310 | ||||||||||||||||||
40,000 | Industrial Select Sector SPDR Fund | 1,944,800 | ||||||||||||||||||
100,000 | iShares MSCI ACWI es U.S. Index Fund | 4,639,000 | ||||||||||||||||||
15,000 | Materials Select Sector SPDR Fund | 656,550 | ||||||||||||||||||
22,000 | SPDR Dow Jones REIT ETF | 1,669,360 | ||||||||||||||||||
115,000 | Technology Select Sector SPDR Fund | 3,869,750 | ||||||||||||||||||
59,950 | Utilities Select Sector SPDR Fund | 2,325,460 | ||||||||||||||||||
Total Equity Funds (cost $24,300,722) | 25,268,707 | |||||||||||||||||||
Fixed Income Funds – 25.3% | ||||||||||||||||||||
349,000 | iShares Mortgage Real Estate Capped ETF | 4,201,960 | ||||||||||||||||||
54,000 | iShares iBoxx $ Investment Grade Corporate Bond ETF | 6,220,800 | ||||||||||||||||||
16,000 | iShares JPMorgan USD Emerging Markets Bond ETF | 1,781,600 | ||||||||||||||||||
17,000 | iShares National AMT-Free Muni Bond ETF | 1,793,330 | ||||||||||||||||||
348,000 | Market Vectors High-Yield Municipal Index ETF | 10,116,360 | ||||||||||||||||||
137,000 | PowerShares Emerging Markets Sovereign Debt Portfolio | 3,823,670 | ||||||||||||||||||
465,000 | PowerShares Financial Preferred Portfolio Fund | 8,025,900 | ||||||||||||||||||
Total Fixed Income Funds (cost $37,807,909) | 35,963,620 | |||||||||||||||||||
Total Exchange-Traded Funds (cost $62,108,631) | 61,232,327 | |||||||||||||||||||
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
SOVEREIGN DEBT – 5.4% | ||||||||||||||||||||
Mexico – 5.4% | ||||||||||||||||||||
30,000 | MXN | Mexico Bonos | 8.000 | % | 6/11/20 | A– | $ | 2,621,578 | ||||||||||||
54,000 | MXN | Mexico Bonos | 6.500 | % | 6/09/22 | A– | 4,295,478 | |||||||||||||
750 | United Mexican States | 5.875 | % | 1/15/14 | Baa1 | 757,500 | ||||||||||||||
Total Sovereign Debt (cost $8,268,317) | 7,674,556 | |||||||||||||||||||
Total Long-Term Investments (70,376,948) | 68,906,883 | |||||||||||||||||||
Shares/ Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 51.3% | ||||||||||||||||||||
Money Market Funds – 46.0% | ||||||||||||||||||||
65,366,522 | First American Treasury Obligations Fund, Class Z | 0.000 | %(5) | N/A | N/A | $ | 65,366,522 | |||||||||||||
U.S. Government and Agency Obligations – 5.3% | ||||||||||||||||||||
$ | 1,000 | U.S. Treasury Bills, (6) | 0.000 | % | 1/23/14 | Aaa | 999,914 | |||||||||||||
6,600 | U.S. Treasury Bills, (6) | 0.000 | % | 2/13/14 | Aaa | 6,599,050 | ||||||||||||||
$ | 7,600 | Total U.S. Government and Agency Obligations | 7,598,964 | |||||||||||||||||
Total Short-Term Investments (cost $72,965,333) | 72,965,486 | |||||||||||||||||||
Total Investments (cost $143,342,281) – 99.8% | 141,872,369 | |||||||||||||||||||
Other Assets Less Liabilities – 0.2% | 248,989 | |||||||||||||||||||
Net Assets – 100% | $ | 142,121,358 |
36 | Nuveen Investments |
Investments in Derivatives as of October 31, 2013
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Unrealized Appreciation (Depreciation) | |||||||||||||||
Australian 10-Year Bond | Long | 207 | 12/13 | $ | 18,785,989 | $ | 200,181 | |||||||||||||
Euro-Bund | Short | (50 | ) | 12/13 | (9,640,059 | ) | (226,468 | ) | ||||||||||||
H-Shares Index | Long | 23 | 11/13 | 1,577,783 | 59,955 | |||||||||||||||
Kospi2 Index | Long | 16 | 12/13 | 2,027,622 | 44,037 | |||||||||||||||
Long Gilt | Short | (21 | ) | 12/13 | (3,746,308 | ) | (92,643 | ) | ||||||||||||
Mexican Peso | Short | (90 | ) | 12/13 | (3,447,000 | ) | (34,125 | ) | ||||||||||||
Russell 2000 Mini Index | Short | (48 | ) | 12/13 | (5,269,440 | ) | (133,160 | ) | ||||||||||||
S&P 500 E-Mini | Short | (176 | ) | 12/13 | (15,408,800 | ) | (580,992 | ) | ||||||||||||
U.S. 2-Year Treasury Note | Short | (138 | ) | 12/13 | (30,418,219 | ) | (45,180 | ) | ||||||||||||
U.S. 5-Year Treasury Note | Short | (159 | ) | 12/13 | (19,348,313 | ) | (164,781 | ) | ||||||||||||
U.S. 10-Year Treasury Note | Long | 33 | 12/13 | 4,202,859 | 106,103 | |||||||||||||||
U.S. Dollar Index | Long | 36 | 12/13 | 2,889,468 | 14,201 | |||||||||||||||
$ | (57,794,418 | ) | $ | (852,872 | ) |
* | The aggregate Notional Amount at Value of long and short positions is $29,483,721 and $(87,278,139), respectively. |
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) | A copy of the most recent financial statements for the exchange-traded funds in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
(3) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(4) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(5) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(6) | Investment, or portion of investment, segregated as collateral for investments in derivatives. |
N/A | Not applicable. |
ACWI | All Country World Index |
ETF | Exchange-Traded Fund |
MSCI | Morgan Stanley Capital International Inc. |
MXN | Mexican Peso |
REIT | Real Estate Investment Trust |
SPDR | Standard & Poor’s Depositary Receipts |
USD | United States Dollar |
See accompanying notes to financial statements.
Nuveen Investments | 37 |
Assets and Liabilities October 31, 2013
International | Tactical Market | |||||||
Assets | ||||||||
Long-term investments, at value (cost $353,193,877 and $70,376,948, respectively) | $ | 422,848,723 | $ | 68,906,883 | ||||
Short-term investments, at value (cost $37,324,782 and $72,965,333, respectively) | 37,325,068 | 72,965,486 | ||||||
Cash | 6,584 | — | ||||||
Cash denominated in foreign currencies, at value (cost approximates value) | 57,239 | — | ||||||
Receivable for: | ||||||||
Deposits with brokers for open futures contracts | 1,375,000 | 320,000 | ||||||
Dividends | 582,642 | — | ||||||
Due from broker | 145,361 | 9,254 | ||||||
Interest | 1,224 | 181,579 | ||||||
Investments sold | 19,737,466 | — | ||||||
Reclaims | 460,670 | — | ||||||
Shares sold | 43,870 | 153,418 | ||||||
Variation margin on futures contracts | 703,329 | 211,228 | ||||||
Other assets | 15,669 | 3,976 | ||||||
Total assets | 483,302,845 | 142,751,824 | ||||||
Liabilities | ||||||||
Payable for: | ||||||||
Due to broker | 453,101 | — | ||||||
Investments purchased | 22,428,696 | — | ||||||
Shares redeemed | — | 282,499 | ||||||
Variation margin on futures contracts | 972,636 | 139,130 | ||||||
Accrued expenses: | ||||||||
Directors fees | 17,623 | 2,758 | ||||||
Management fees | 273,191 | 89,299 | ||||||
12b-1 distribution and service fees | 7,674 | 14,571 | ||||||
Other | 413,949 | 102,209 | ||||||
Total liabilities | 24,566,870 | 630,466 | ||||||
Net assets | $ | 458,735,975 | $ | 142,121,358 | ||||
Class A Shares | ||||||||
Net assets | $ | 24,267,907 | $ | 24,710,382 | ||||
Shares outstanding | 2,284,217 | 2,311,408 | ||||||
Net asset value per share | $ | 10.62 | $ | 10.69 | ||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 11.27 | $ | 11.34 | ||||
Class C Shares | ||||||||
Net assets | $ | 3,033,757 | $ | 10,130,708 | ||||
Shares outstanding | 289,581 | 958,685 | ||||||
Net asset value and offering price per share | $ | 10.48 | $ | 10.57 | ||||
Class I Shares | ||||||||
Net assets | $ | 431,434,311 | $ | 107,280,268 | ||||
Shares outstanding | 40,520,956 | 10,004,942 | ||||||
Net asset value and offering price per share | $ | 10.65 | $ | 10.72 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 377,336,226 | $ | 149,599,525 | ||||
Undistributed (Over-distribution of) net investment income | 4,429,810 | (3,473 | ) | |||||
Accumulated net realized gain (loss) | 5,627,471 | (5,172,475 | ) | |||||
Net unrealized appreciation (depreciation) | 71,342,468 | (2,302,219 | ) | |||||
Net assets | $ | 458,735,975 | $ | 142,121,358 | ||||
Authorized shares – per class | 2 Billion | 2 Billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 |
See accompanying notes to financial statements.
38 | Nuveen Investments |
Operations Year Ended October 31, 2013
International | Tactical Market | |||||||
Dividend and interest income (net of foreign tax withheld of $961,029 and $7,164, respectively) | $ | 9,430,964 | $ | 3,313,503 | ||||
Expenses | ||||||||
Management fees | 4,446,812 | 1,744,100 | ||||||
12b-1 service fees – Class A | 10,240 | 117,477 | ||||||
12b-1 distribution and service fees – Class C | 7,776 | 139,746 | ||||||
Shareholder servicing agent fees and expenses | 65,681 | 171,839 | ||||||
Custodian fees and expenses | 539,112 | 54,540 | ||||||
Directors fees and expenses | 10,874 | 5,794 | ||||||
Professional fees | 121,606 | 32,690 | ||||||
Shareholder reporting expenses | 7,672 | 121,610 | ||||||
Federal and state registration fees | 49,066 | 54,942 | ||||||
Reorganization expenses | 130,000 | — | ||||||
Other expenses | 7,237 | 2,565 | ||||||
Total expenses before fee waiver/expense reimbursement | 5,396,076 | 2,445,303 | ||||||
Fee waiver/expense reimbursement | (92,933 | ) | (87,355 | ) | ||||
Net expenses | 5,303,143 | 2,357,948 | ||||||
Net investment income (loss) | 4,127,821 | 955,555 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | 27,281,106 | (3,600,646 | ) | |||||
Futures contracts | 15,284,959 | (1,903,274 | ) | |||||
Options purchased | — | (231,600 | ) | |||||
Options written | — | (71,872 | ) | |||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | 30,214,848 | (3,692,925 | ) | |||||
Futures contracts | (83,129 | ) | (1,601,833 | ) | ||||
Net realized and unrealized gain (loss) | 72,697,784 | (11,102,150 | ) | |||||
Net increase (decrease) in net assets from operations | $ | 76,825,605 | $ | (10,146,595 | ) |
See accompanying notes to financial statements.
Nuveen Investments | 39 |
Changes in Net Assets
International Select | Tactical Market Opportunities | |||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 4,127,821 | $ | 5,823,962 | $ | 955,555 | $ | 561,603 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments and foreign currency | 27,281,106 | (22,623,577 | ) | (3,600,646 | ) | 1,911,060 | ||||||||||||
Futures contracts | 15,284,959 | (8,168,446 | ) | (1,903,274 | ) | (557,828 | ) | |||||||||||
Options purchased | — | — | (231,600 | ) | — | |||||||||||||
Options written | — | — | (71,872 | ) | 60 | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments and foreign currency | 30,214,848 | 36,768,484 | (3,692,925 | ) | 1,372,961 | |||||||||||||
Futures contracts | (83,129 | ) | 3,095,727 | (1,601,833 | ) | 984,869 | ||||||||||||
Net increase (decrease) in net assets from operations | 76,825,605 | 14,896,150 | (10,146,595 | ) | 4,272,725 | |||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A | (46,712 | ) | (50,326 | ) | (275,374 | ) | (47,114 | ) | ||||||||||
Class C | (3,027 | ) | (2,770 | ) | — | — | ||||||||||||
Class I | (5,933,545 | ) | (7,900,958 | ) | (1,210,420 | ) | (353,238 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A | — | (47,541 | ) | (154,299 | ) | (209,804 | ) | |||||||||||
Class C | — | (7,969 | ) | (42,778 | ) | (23,497 | ) | |||||||||||
Class I | — | (6,195,076 | ) | (512,252 | ) | (815,282 | ) | |||||||||||
From return of capital: | ||||||||||||||||||
Class A | — | — | (122,590 | ) | — | |||||||||||||
Class C | — | — | — | — | ||||||||||||||
Class I | — | — | (538,850 | ) | — | |||||||||||||
Decrease in net assets from distributions to shareholders | (5,983,284 | ) | (14,204,640 | ) | (2,856,563 | ) | (1,448,935 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Fund reorganization(1) | 93,347,898 | — | — | — | ||||||||||||||
Proceeds from sale of shares | 37,702,579 | 75,494,059 | 74,222,385 | 254,776,661 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 1,792,578 | 4,681,594 | 2,771,372 | 1,316,662 | ||||||||||||||
132,843,055 | 80,175,653 | 76,993,757 | 256,093,323 | |||||||||||||||
Cost of shares redeemed | (178,277,719 | ) | (231,253,534 | ) | (192,374,424 | ) | (41,304,739 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (45,434,664 | ) | (151,077,881 | ) | (115,380,667 | ) | 214,788,584 | |||||||||||
Net increase (decrease) in net assets | 25,407,657 | (150,386,371 | ) | (128,383,825 | ) | 217,612,374 | ||||||||||||
Net assets at the beginning of period | 433,328,318 | 583,714,689 | 270,505,183 | 52,892,809 | ||||||||||||||
Net assets at the end of period | $ | 458,735,975 | $ | 433,328,318 | $ | 142,121,358 | $ | 270,505,183 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 4,429,810 | $ | 5,495,973 | $ | (3,473 | ) | $ | 1,440,593 |
(1) | Refer to Note – 1 General Information and Significant Accounting Policies, Fund Reorganization for further details. |
See accompanying notes to financial statements.
40 | Nuveen Investments |
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Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
INTERNATIONAL SELECT | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (12/06) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 8.96 | $ | .06 | $ | 1.71 | $ | 1.77 | $ | (.11 | ) | $ | — | $ | (.11 | ) | $ | 10.62 | ||||||||||||||||
2012 | 8.85 | .08 | .24 | .32 | (.11 | ) | (.10 | ) | (.21 | ) | 8.96 | |||||||||||||||||||||||
2011 | 9.54 | .09 | (.72 | ) | (.63 | ) | (.06 | ) | — | (.06 | ) | 8.85 | ||||||||||||||||||||||
2010 | 8.48 | .06 | 1.02 | 1.08 | (.02 | ) | — | (.02 | ) | 9.54 | ||||||||||||||||||||||||
2009 | 6.53 | .07 | 2.00 | 2.07 | (.12 | ) | — | (.12 | ) | 8.48 | ||||||||||||||||||||||||
Class C (12/06) |
| |||||||||||||||||||||||||||||||||
2013 | 8.84 | (.01 | ) | 1.69 | 1.68 | (.04 | ) | — | (.04 | ) | 10.48 | |||||||||||||||||||||||
2012 | 8.72 | .02 | .24 | .26 | (.04 | ) | (.10 | ) | (.14 | ) | 8.84 | |||||||||||||||||||||||
2011 | 9.43 | .02 | (.72 | ) | (.70 | ) | (.01 | ) | — | (.01 | ) | 8.72 | ||||||||||||||||||||||
2010 | 8.42 | .01 | 1.00 | 1.01 | — | — | — | 9.43 | ||||||||||||||||||||||||||
2009 | 6.46 | .03 | 1.97 | 2.00 | (.04 | ) | — | (.04 | ) | 8.42 | ||||||||||||||||||||||||
Class I (12/06) |
| |||||||||||||||||||||||||||||||||
2013 | 8.98 | .09 | 1.71 | 1.80 | (.13 | ) | — | (.13 | ) | 10.65 | ||||||||||||||||||||||||
2012 | 8.87 | .10 | .24 | .34 | (.13 | ) | (.10 | ) | (.23 | ) | 8.98 | |||||||||||||||||||||||
2011 | 9.57 | .12 | (.74 | ) | (.62 | ) | (.08 | ) | — | (.08 | ) | 8.87 | ||||||||||||||||||||||
2010 | 8.49 | .09 | 1.02 | 1.11 | (.03 | ) | — | (.03 | ) | 9.57 | ||||||||||||||||||||||||
2009 | 6.55 | .08 | 2.01 | 2.09 | (.15 | ) | — | (.15 | ) | 8.49 |
See accompanying notes to financial statements.
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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
19.91 | % | $ | 24,268 | 1.47 | % | .58 | % | 1.44 | % | .61 | % | 91 | % | |||||||||||||||||
3.83 | 4,060 | 1.53 | .88 | 1.48 | .93 | 49 | ||||||||||||||||||||||||
(6.70 | ) | 4,388 | 1.46 | .96 | 1.46 | .96 | 59 | |||||||||||||||||||||||
12.72 | 5,530 | 1.62 | .56 | 1.49 | .69 | 47 | ||||||||||||||||||||||||
32.32 | 3,029 | 1.76 | .77 | 1.49 | 1.04 | 64 | ||||||||||||||||||||||||
19.09 | 3,034 | 2.24 | (.11 | ) | 2.21 | (.07 | ) | 91 | ||||||||||||||||||||||
3.09 | 644 | 2.28 | .15 | 2.23 | .20 | 49 | ||||||||||||||||||||||||
(7.45 | ) | 717 | 2.21 | .21 | 2.21 | .21 | 59 | |||||||||||||||||||||||
12.00 | 816 | 2.37 | (.05 | ) | 2.24 | .08 | 47 | |||||||||||||||||||||||
31.43 | 244 | 2.51 | .13 | 2.24 | .40 | 64 | ||||||||||||||||||||||||
20.27 | 431,434 | 1.25 | .95 | 1.23 | .97 | 91 | ||||||||||||||||||||||||
4.12 | 428,624 | 1.28 | 1.14 | 1.23 | 1.18 | 49 | ||||||||||||||||||||||||
(6.60 | ) | 578,597 | 1.21 | 1.23 | 1.21 | 1.23 | 59 | |||||||||||||||||||||||
13.14 | 848,165 | 1.37 | .85 | 1.24 | .98 | 47 | ||||||||||||||||||||||||
32.68 | 584,667 | 1.51 | .90 | 1.24 | 1.17 | 64 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 43 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||||||
TACTICAL MARKET OPPORTUNITIES | ||||||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | From Return of Capital | Total | Ending Net Asset Value | |||||||||||||||||||||||||||||
Class A (2/11) |
| |||||||||||||||||||||||||||||||||||||
2013 | $ | 11.29 | $ | .03 | $ | (.53 | ) | $ | (.50 | ) | $ | (.04 | ) | $ | (.03 | ) | $ | (.03 | ) | $ | (.10 | ) | $ | 10.69 | ||||||||||||||
2012 | 11.22 | .02 | .25 | .27 | (.03 | ) | (.17 | ) | — | (.20 | ) | 11.29 | ||||||||||||||||||||||||||
2011(d) | 10.59 | .04 | .59 | .63 | — | — | — | — | 11.22 | |||||||||||||||||||||||||||||
Class C (2/11) |
| |||||||||||||||||||||||||||||||||||||
2013 | 11.17 | (.05 | ) | (.52 | ) | (.57 | ) | — | (.03 | ) | | — | | (.03 | ) | 10.57 | ||||||||||||||||||||||
2012 | 11.17 | (.07 | ) | .24 | .17 | — | (.17 | ) | — | (.17 | ) | 11.17 | ||||||||||||||||||||||||||
2011(d) | 10.59 | — | * | .58 | .58 | — | — | — | — | 11.17 | ||||||||||||||||||||||||||||
Class I (12/09) |
| |||||||||||||||||||||||||||||||||||||
2013 | 11.32 | .06 | (.53 | ) | (.47 | ) | (.06 | ) | (.03 | ) | $ | (.04 | ) | (.13 | ) | 10.72 | ||||||||||||||||||||||
2012 | 11.25 | .05 | .25 | .30 | (.06 | ) | (.17 | ) | — | (.23 | ) | 11.32 | ||||||||||||||||||||||||||
2011 | 10.62 | .14 | .59 | .73 | (.08 | ) | (.02 | ) | — | (.10 | ) | 11.25 | ||||||||||||||||||||||||||
2010(e) | 10.00 | .02 | .60 | .62 | — | — | — | — | 10.62 |
See accompanying notes to financial statements.
44 | 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 | Expenses(f) | Net Investment Income (Loss) | Expenses(f) | Net Investment Income (Loss) | Portfolio Turnover Rate(g) | ||||||||||||||||||||||||
(4.44 | )% | $ | 24,710 | 1.21 | % | .23 | % | 1.17 | % | .26 | % | 220 | % | |||||||||||||||||
2.45 | 59,751 | 1.19 | .13 | 1.18 | .14 | 189 | ||||||||||||||||||||||||
5.95 | 3,558 | 1.67 | ** | .06 | ** | 1.19 | ** | 54 | ** | 177 | ||||||||||||||||||||
(5.12 | ) | 10,131 | 1.96 | (.47 | ) | 1.92 | (.43 | ) | 220 | |||||||||||||||||||||
1.55 | 15,045 | 1.93 | (.65 | ) | 1.93 | (.65 | ) | 189 | ||||||||||||||||||||||
5.48 | 475 | 2.31 | ** | (.37 | )** | 1.94 | ** | — | *** | 177 | ||||||||||||||||||||
(4.18 | ) | 107,280 | .96 | .49 | .92 | .53 | 220 | |||||||||||||||||||||||
2.69 | 195,709 | .94 | .41 | .93 | .43 | 189 | ||||||||||||||||||||||||
6.95 | 48,860 | 1.18 | 1.01 | .94 | 1.25 | 177 | ||||||||||||||||||||||||
6.20 | 27,300 | 4.14 | ** | (1.83 | )** | .92 | ** | 1.39 | ** | 156 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | 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 February 24, 2011 (commencement of operations) through October 31, 2011. |
(e) | For the period December 30, 2009 (commencement of operations) through October 31, 2010. |
(f) | In addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of the exchange-traded funds in which the Fund invests. These exchange-traded fund fees and expenses are not reflected in the expense ratios. Because the exchange-traded funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. |
(g) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Rounds to less than $.01 per share. |
** | Annualized. |
*** | Annualized ratio rounds to less than .01%. |
See accompanying notes to financial statements.
Nuveen Investments | 45 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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 International Select Fund (“International Select”) and Nuveen Tactical Market Opportunities Fund (“Tactical Market Opportunities”) (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
Investment Adviser
On December 31, 2012, the Funds’ investment adviser converted from a Delaware corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisors, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (“NAM”), a subsidiary of the Adviser, under which NAM serves as the sub-adviser and manages the investment portfolios for the Funds. In addition to NAM, for International Select the Adviser has entered into sub-advisory agreements with Altrinsic Global Advisors, LLC (“Altrinsic”) and Lazard Asset Management LLC (“Lazard”), under which Altrinsic and Lazard serve as sub-advisers and manage the investment portfolio for the Fund.
During the current fiscal period, International Select’s Board of Directors approved the removal of Hansberger Global Investors, Inc. (“Hansberger”) as a sub-adviser for the Fund, effective as of the close of business on June 21, 2013. The assets managed by Hansberger were reallocated to NAM, Altrinsic and Lazard.
NAM, Altrinsic, Hansberger and Lazard are collectively the “Sub-Advisers.”
Fund Information
International Select’s investment objective is long-term growth of capital. Under normal market conditions, the Fund invests primarily in equity securities of non-U.S. issuers that trade in U.S. or non-U.S. markets, depositary receipts representing shares of non-U.S. issuers, and exchange-traded funds (“ETFs”) and other investment companies that provide exposure to non-U.S. issuers. The Fund may invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
Tactical Market Opportunities’ investment objective is to earn a positive total return over a reasonable period of time, regardless of market conditions. Under normal market conditions, the Fund will seek to outperform the Merrill Lynch 3 Month Treasury Bill Index (the “Treasury Bill Index”) by 400 basis points, or 4%, on an annualized basis. The Fund seeks to outperform the Treasury Bill Index over a reasonable period of time, although there is no guarantee that it will be able to do so. The Fund seeks to achieve its objective by investing across the following asset classes: U.S., international and emerging market equity and debt securities (including high yield debt securities), commodities, currencies, high quality, short-term debt securities and money market funds. The Fund gains exposure to these asset classes by investing in derivative instruments and ETFs, and by investing directly in U.S. Treasury obligations, non-U.S. government obligations that have an investment grade rating from at least one rating agency and money market funds.
Tactical Market Opportunities will use derivative instruments such as options; futures contracts, including futures on equity and commodities indices, interest rate futures and currency futures; options on futures contracts; interest rate caps and floors; foreign currency contracts; options on foreign currencies; interest rate, total return, currency and credit default swaps; and options on the foregoing types of swap agreements. Derivatives may be entered into on established exchanges, either in the U.S. or in non-U.S. countries, or through privately negotiated transactions referred to as over-the-counter derivatives. In using derivatives, the Fund may take both long positions (the values of which move in the same direction as the prices of the underlying investment, pool of investments, index or currency) and short positions (the values of which move in the opposite direction from the price of the underlying investment, pool of investments, index or currency).
Investment Policy Changes
Effective December 14, 2012, Tactical Market Opportunities’ investment policies were updated to allow the Fund to invest directly in equity and debt securities in order to create custom baskets of securities. Tactical Market Opportunities may now gain exposure to the aforementioned asset classes
46 | Nuveen Investments |
(i) by investing in derivative instruments and ETFs (ii) by creating custom baskets of equity and debt securities, where each basket is designed to track the performance of a particular securities index (such as an industry, sector, country or region index) within certain parameters, and (iii) by investing directly in U.S. Treasury obligations, non-U.S. government obligations that have an investment grade rating from at least one rating agency and money market funds.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Fund Reorganization
Effective after the close of business on October 25, 2013, Nuveen International Fund (“International” or the “Acquired Fund”) was reorganized into International Select (the “Acquiring Fund”), (the “Reorganization”).
The Reorganization was approved by the shareholders of the Acquired Fund at a special meeting on October 18, 2013.
Upon the closing of the Reorganization, the Acquired Fund transferred all of its assets and liabilities to the Acquiring Fund in exchange for Acquiring Fund shares of equal value. Shares of the Acquiring Fund were then distributed to shareholders of the Acquired Fund and the Acquired Fund was terminated. As a result of this transaction, shareholders of the Acquired Fund became shareholders of the Acquiring Fund and ceased to be shareholders of the Acquired Fund. Each Acquired Fund shareholder received Acquiring Fund shares with a total value equal to the total value of that shareholder’s Acquired Fund shares immediately prior to the closing of the Reorganization.
Details of the Reorganization is further described in Note 8 – Fund Reorganizations.
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 investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes is recorded on an accrual basis.
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 and net realized 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.
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 the Funds for $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. 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 I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Nuveen Investments | 47 |
Notes to Financial Statements (continued)
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and shareholder service fees, are recorded to the specific class.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
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. These securities may represent a transfer from a Level 1 to a Level 2 security.
The ETFs in which the Funds invests are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1.
Investments in investment companies are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors. These securities are generally classified as Level 2. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
The value of exchange-traded options are based on the mean of the closing bid and ask prices. Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price. Exchange-traded options and futures contracts are generally classified as Level 1. Options traded in the over-the counter market are valued using an evaluated mean price and are generally classified as Level 2.
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.
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
48 | Nuveen Investments |
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:
International Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 421,267,049 | $ | 672,384 | $ | — | $ | 421,939,433 | ||||||||
Common Stock Rights | 1,118 | — | — | 1,118 | ||||||||||||
Master Limited Partnerships (MLP) & MLP Affiliates | 908,172 | — | — | 908,172 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 24,826,723 | — | — | 24,826,723 | ||||||||||||
U.S. Government and Agency Obligations | — | 12,498,345 | — | 12,498,345 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | 1,545,462 | — | — | 1,545,462 | ||||||||||||
Total | $ | 448,548,524 | $ | 13,170,729 | $ | — | $ | 461,719,253 | ||||||||
Tactical Market Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Exchange-Traded Funds | $ | 61,232,327 | $ | — | $ | — | $ | 61,232,327 | ||||||||
Sovereign Debt | — | 7,674,556 | — | 7,674,556 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 65,366,522 | — | — | 65,366,522 | ||||||||||||
U.S. Government and Agency Obligations | — | 7,598,964 | — | 7,598,964 | ||||||||||||
Derivatives: | ||||||||||||||||
Futures Contracts** | (852,872 | ) | — | — | (852,872 | ) | ||||||||||
Total | $ | 125,745,977 | $ | 15,273,520 | $ | — | $ | 141,019,497 |
* | Refer to the Fund’s Portfolio of Investments for country classifications, industry classifications and breakdown of Common Stocks classified as Level 2, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
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
Nuveen Investments | 49 |
Notes to Financial Statements (continued)
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
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, foreign currency exchange contracts, futures, options purchased, options written and swap contracts, when applicable, are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of “Change in net unrealized appreciation (depreciation) of foreign currency exchange contracts, futures, options purchased, options written and swap contracts, respectively” on the Statement of Operations, when applicable.
Investments in Derivatives
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.
50 | Nuveen Investments |
Futures Contracts
Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Deposits with brokers for open futures contracts” on the Statement of Assets and Liabilities. Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If a Fund has unrealized appreciation the clearing broker would credit the investors account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit a Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the fiscal year ended October 31, 2013, the Funds used futures contracts as a means to efficiently gain exposure to a broad base of securities. International Select invested in equity and currency futures contracts, which were used as an overlay strategy to adjust the exposures created by the Fund’s multi-manager framework, so that the Fund overall had the desired exposures to key markets. The Fund’s long and short futures contracts were used to manage country and style exposures and implement various tactical market and hedging strategies. Tactical Market Opportunities invested in equity, interest rate and currency futures contracts, which were used to implement various absolute return, tactical market and hedging strategies.
The average notional amount of futures contracts outstanding during the fiscal year ended October 31, 2013, was as follows:
International Select | Tactical Market Opportunities | |||||||
Average notional amount of futures contracts outstanding* | $ | 215,409,684 | $ | 173,340,869 |
* | The average notional amount is calculated based on the absolute aggregate value of outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
The following tables present the fair value of all futures contracts held by the Funds as of October 31, 2013, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Derivative Instrument | Asset Derivatives | (Liability) Derivatives | ||||||||||||
Underlying Risk Exposure | Location | Value | Location | Value | ||||||||||
International Select | ||||||||||||||
Equity | Futures contracts | Receivable for variation margin on futures contracts* | $ | 3,909,172 | Payable for variation margin on futures contracts* | $ | (2,363,710 | ) | ||||||
Tactical Market Opportunities | ||||||||||||||
Equity | Futures contracts | Receivable for variation margin on futures contracts* | $ | 103,992 | Payable for variation margin on futures contracts* | $ | (714,152 | ) | ||||||
Foreign Currency Exchange Rate | Futures contracts | Receivable for variation margin on futures contracts* | 14,201 | Payable for variation margin on futures contracts* | (34,125 | ) | ||||||||
Interest Rate | Futures contracts | Receivable for variation margin on futures contracts* | 306,284 | Payable for variation margin on futures contracts* | (529,072 | ) | ||||||||
Total | $ | 424,477 | $ | (1,277,349 | ) |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments, and not the receivable or payable for variation margin on futures contracts presented on the Statement of Assets and Liabilities. |
Nuveen Investments | 51 |
Notes to Financial Statements (continued)
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts during the fiscal year ended October 31, 2013, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation Depreciation) | ||||||||||||
International Select | Equity | Futures Contracts | $ | 15,787,311 | $ | 43,058 | ||||||||||
Foreign currency exchange rate | Futures Contracts | (502,352 | ) | (126,187 | ) | |||||||||||
Total | $ | 15,284,959 | $ | (83,129 | ) | |||||||||||
Tactical Market Opportunities | Equity | Futures Contracts | $ | (1,867,542 | ) | $ | (779,121 | ) | ||||||||
Foreign currency exchange rate | Futures Contracts | 101,673 | (125,637 | ) | ||||||||||||
Interest Rate | Futures Contracts | (137,405 | ) | (697,075 | ) | |||||||||||
Total | $ | (1,903,274 | ) | $ | (1,601,833 | ) |
Options Transactions
The purchase of options and/or swaptions involves the risk of loss of all or a part of the cash paid for the options (the premium). The market risk associated with purchasing options and/or swaptions is limited to the premium paid. The counterparty credit risk of purchasing options, however, needs also to take into account the current value of the option, as this is the performance expected from the counterparty. When a Fund purchases an option and/or swaption, an amount equal to the premium paid (the premium plus commission) is recognized as a component of “Options and/or Swaptions purchased, at value” on the Statement of Assets and Liabilities. When a Fund writes an option and swaption, an amount equal to the net premium received (the premium less commission) is recognized as a component of “Options and/or Swaptions written, at value” on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option and/or swaption until the option is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options and/or swaptions purchased during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of Options and/or Swaptions purchased” on the Statement of Operations. The changes in the value of options and/or swaptions written during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of Options and/or Swaptions written” on the Statement of Operations. When an option and/or swaption is exercised or expires or the Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on executing a closing purchase transaction, including commission, is recognized as a component of “Net realized gain (loss) from Options and/or Swaptions purchased and/or written” on the Statement of Operations. The Fund, as a writer of an option and/or swaption has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option and/or swaption. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
During fiscal year ended October 31, 2013, Tactical Market Opportunities invested in equity call and put options to generate return and manage the Fund.
The average notional amount of outstanding purchased and written options contracts during the fiscal year ended October 31, 2013, was as follows:
Tactical Market Opportunities | ||||
Average notional amount of outstanding purchased options contracts* | $ | 3,100,000 | ||
Average notional amount of outstanding written options contracts* | 2,080,740 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
The following table presents the amount of net realized gain (loss) recognized on options contracts during the fiscal year ended October 31, 2013, and the primary risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) | |||||||||
Tactical Market Opportunities | Equity | Put options purchased | $ | (231,600 | ) | |||||||
Equity | Call options written | (71,872 | ) | |||||||||
Total | $ | (303,472 | ) |
52 | Nuveen Investments |
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares were as follows:
International Select | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares issued in the Reorganization(1): | ||||||||||||||||
Class A | 1,889,026 | $ | 20,192,967 | — | $ | — | ||||||||||
Class C | 208,907 | 2,202,333 | — | — | ||||||||||||
Class R3(2) | — | — | — | — | ||||||||||||
Class I | 6,623,463 | 70,952,598 | — | — | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 121,592 | 1,187,354 | 66,016 | 563,315 | ||||||||||||
Class C | 16,654 | 159,896 | 7,481 | 64,823 | ||||||||||||
Class R3(2) | — | — | — | — | ||||||||||||
Class I | 3,789,821 | 36,355,329 | 8,648,794 | 74,865,921 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 4,487 | 41,369 | 10,687 | 86,950 | ||||||||||||
Class C | 324 | 2,968 | 1,333 | 10,675 | ||||||||||||
Class R3(2) | — | — | 35 | 277 | ||||||||||||
Class I | 189,614 | 1,748,241 | 562,947 | 4,583,692 | ||||||||||||
12,843,888 | 132,843,055 | 9,297,293 | 80,175,653 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (183,863 | ) | (1,761,734 | ) | (119,700 | ) | (1,027,486 | ) | ||||||||
Class C | (9,152 | ) | (87,070 | ) | (18,141 | ) | (155,798 | ) | ||||||||
Class R3(2) | — | — | (1,554 | ) | (12,245 | ) | ||||||||||
Class I | (17,797,058 | ) | (176,428,915 | ) | (26,733,722 | ) | (230,058,005 | ) | ||||||||
(17,990,073 | ) | (178,277,719 | ) | (26,873,117 | ) | (231,253,534 | ) | |||||||||
Net increase (decrease) | (5,146,185 | ) | $ | (45,434,664 | ) | (17,575,824 | ) | $ | (151,077,881 | ) |
(1) | Refer to Note 8 – Fund Reorganization for further details. |
(2) | After the close of business on June 13, 2012, International Select liquidated all of its Class R3 Shares. |
Nuveen Investments | 53 |
Notes to Financial Statements (continued)
Tactical Market Opportunities | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,540,143 | $ | 17,207,933 | 6,181,689 | $ | 69,086,517 | ||||||||||
Class C | 476,113 | 5,242,160 | 1,365,581 | 15,153,881 | ||||||||||||
Class I | 4,629,081 | 51,772,292 | 15,233,105 | 170,536,263 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 48,593 | 542,276 | 20,431 | 225,355 | ||||||||||||
Class C | 3,683 | 40,811 | 1,961 | 21,516 | ||||||||||||
Class I | 195,863 | 2,188,285 | 96,689 | 1,069,791 | ||||||||||||
6,893,476 | 76,993,757 | 22,899,456 | 256,093,323 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (4,571,350 | ) | (50,299,290 | ) | (1,225,187 | ) | (13,763,850 | ) | ||||||||
Class C | (867,879 | ) | (9,446,801 | ) | (63,271 | ) | (694,273 | ) | ||||||||
Class I | (12,103,107 | ) | (132,628,333 | ) | (2,388,710 | ) | (26,846,616 | ) | ||||||||
(17,542,336 | ) | (192,374,424 | ) | (3,677,168 | ) | (41,304,739 | ) | |||||||||
Net increase (decrease) | (10,648,860 | ) | $ | (115,380,667 | ) | 19,222,288 | $ | 214,788,584 |
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended October 31, 2013, were as follows:
International Select | Tactical Market Opportunities | |||||||
Purchases: | ||||||||
Investment securities | $ | 343,316,895 | $ | 151,852,065 | ||||
U.S. Government and agency obligations | — | 20,994,285 | ||||||
Sales and maturities: | ||||||||
Investment securities | 470,457,915 | 127,005,950 | ||||||
U.S. Government and agency obligations | — | 25,008,867 |
Transactions on options written for Tactical Market Opportunities during the fiscal year ended October 31, 2013, were as follows:
Tactical Market Opportunities | ||||||||
Number of contracts | Premiums Received | |||||||
Outstanding, beginning of period | — | $ | — | |||||
Options written | 4,850 | 32,238 | ||||||
Options terminated in closing purchase transactions | — | — | ||||||
Options expired | (4,850 | ) | (32,238 | ) | ||||
Outstanding, end of period | — | $ | — |
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.
54 | Nuveen Investments |
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.
As of October 31, 2013, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
International Select | Tactical Market Opportunities | |||||||
Cost of investments | $ | 397,406,662 | $ | 143,486,864 | ||||
Gross unrealized: | ||||||||
Appreciation | $ | 82,288,457 | $ | 1,239,562 | ||||
Depreciation | (19,521,328 | ) | (2,854,057 | ) | ||||
Net unrealized appreciation (depreciation) of investments | $ | 62,767,129 | $ | (1,614,495 | ) |
Permanent differences, primarily due to foreign currency reclassifications, federal taxes paid, investments in partnerships, dividend reallocation adjustments, distribution character reclassifications, return of capital distributions, nondeductible Reorganization expenses, Reorganization adjustments and investments in passive foreign investment companies, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2013, the Funds’ tax year end, as follows:
International Select | Tactical Market Opportunities | |||||||
Capital paid-in | $ | 1,403,757 | $ | (672,035 | ) | |||
Undistributed (Over-distribution of) net investment income | 789,300 | (252,387 | ) | |||||
Accumulated net realized gain (loss) | (2,193,057 | ) | 924,422 |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2013, the Funds’ tax year end, were as follows:
International Select | Tactical Market Opportunities | |||||||
Undistributed net ordinary income1 | $ | 10,066,901 | $ | — | ||||
Undistributed net long-term capital gains | 7,457,054 | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2013 and October 31, 2012, was designated for purposes of the dividends paid deduction as follows:
2013 | International Select | Tactical Market Opportunities | ||||||
Distributions from net ordinary income1 | $ | 6,847,906 | $ | 2,049,542 | ||||
Distributions from net long-term capital gains2 | — | 145,581 | ||||||
Return of capital | — | 661,440 |
2012 | International Select | Tactical Market Opportunities | ||||||
Distributions from net ordinary income1 | $ | 7,954,055 | $ | 1,164,302 | ||||
Distributions from net long-term capital gains | 6,250,585 | 284,633 | ||||||
Return of Capital | — | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
2 | The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2013. |
Nuveen Investments | 55 |
Notes to Financial Statements (continued)
As of October 31, 2013, the Funds’ tax year end, Tactical Market Opportunities had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by the Fund, while the losses subject to expiration are considered short-term.
Tactical Market Opportunities | ||||
Not subject to expiration: | ||||
Short-term | $ | 5,025,424 | ||
Long-term | 1,159,363 | |||
Total | $ | 6,184,787 |
During the Funds’ tax year ended October 31, 2013, International Select utilized capital loss carryforwards as follows:
International Select | ||||
Utilized capital loss carryforwards | $ | 25,217,573 |
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-Advisers will be compensated for their 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 | International Select Fund-Level Fee Rate | Tactical Market Opportunities Fund-Level Fee Rate | ||||||
For the first $125 million | .8500 | % | .6000 | % | ||||
For the next $125 million | .8375 | .5875 | ||||||
For the next $250 million | .8250 | .5750 | ||||||
For the next $500 million | .8125 | .5625 | ||||||
For the next $1 billion | .8000 | .5500 | ||||||
For net assets over $2 billion | .7750 | .5250 |
56 | 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 certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2013, the complex-level fee rate for each of these Funds was as follows: |
Fund | Rate | |||
International Select | .2000 | % | ||
Tactical Market Opportunities | .1723 |
The Adviser had contractually agreed to waive fees and/or reimburse other Fund expenses (“Expense Cap”) of each Fund so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed the percentage of the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
International Select | Temporary Expense Cap (Pre-Reorganization) | Temporary Expense Cap Expiration Date (Pre-Reorganization) | Temporary Expense Cap (Post-Reorganization) | Temporary Expense Cap Expiration Date (Post-Reorganization) | ||||||||||||
Class A Shares | 1.49 | % | February 28, 2014 | 1.45 | % | October 31, 2015 | ||||||||||
Class C Shares | 2.24 | % | February 28, 2014 | 2.20 | October 31, 2015 | |||||||||||
Class I Shares | 1.24 | % | February 28, 2014 | 1.20 | October 31, 2015 |
Tactical Market Opportunities | Temporary Expense Cap | Temporary Expense Cap Expiration Date | ||||||
Class A Shares | 1.20 | % | February 28, 2014 | |||||
Class C Shares | 1.95 | February 28, 2014 | ||||||
Class I Shares | 0.95 | February 28, 2014 |
The Adviser may also voluntarily reimburse expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at anytime 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.
Nuveen Investments | 57 |
Notes to Financial Statements (continued)
During the fiscal year ended October 31, 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:
International Select | Tactical Market Opportunities | |||||||
Sales charges collected (Unaudited) | $ | 7,381 | $ | 78,767 | ||||
Paid to financial intermediaries (Unaudited) | 6,635 | 73,893 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
International Select | Tactical Market Opportunities | |||||||
Commission advances (Unaudited) | $ | 1,905 | $ | 83,996 |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended October 31, 2013, the Distributor retained such 12b-1 fees as follows:
International Select | Tactical Market Opportunities | |||||||
12b-1 fees retained (Unaudited) | $ | 682 | $ | 88,857 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2013, as follows:
International Select | Tactical Market Opportunities | |||||||
CDSC retained (Unaudited) | $ | — | $ | 13,545 |
8. Fund Reorganization
The Reorganization was structured to qualify as a tax-free reorganization under the Internal Revenue Code for federal income tax purposes, and the Acquired Fund’s shareholders will recognize no gain or loss for federal income tax purposes as a result. Prior to the closing of the Reorganization, the Acquired Fund distributed all of its net investment income and capital gains, if any. Such a distribution may be taxable to the Acquired Fund’s shareholders for federal income tax purposes.
The cost, fair value and net unrealized appreciation (depreciation) of the investments of the Acquired Fund as of the date of the Reorganization, were as follows:
International | ||||
Cost of investments | $ | 77,041,270 | ||
Fair value of investments | 93,320,036 | |||
Net unrealized appreciation (depreciation) of investments | 16,278,766 |
For financial reporting purposes, assets received and shares issued by the Acquiring Fund were recorded at fair value; however, the cost basis of the investments received from the Acquired Fund was carried forward to align ongoing reporting of the Acquiring Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
58 | Nuveen Investments |
For accounting and performance reporting purposes, the Acquiring Fund is the survivor. The shares outstanding, net assets and NAV per share immediately before and after the Reorganization are as follows:
Acquired Fund – Prior to Reorganization | Shares Outstanding | Net Assets | NAV per Share | |||||||||
International | ||||||||||||
Class A | 1,685,218 | $ | 19,994,814 | $ | 11.86 | |||||||
Class C | 196,731 | 2,202,333 | 11.19 | |||||||||
Class R3 | 16,674 | 198,153 | 11.88 | |||||||||
Class I | 5,913,795 | 70,952,598 | 12.00 | |||||||||
Acquiring Fund – Prior to Reorganization | Shares Outstanding | Net Assets | NAV per Share | |||||||||
International Select | ||||||||||||
Class A | 402,112 | $ | 4,298,423 | $ | 10.69 | |||||||
Class C | 80,800 | 851,813 | 10.54 | |||||||||
Class I | 34,068,873 | 364,957,366 | 10.71 | |||||||||
Acquiring Fund – Post Reorganization | Shares Outstanding | Net Assets | NAV per Share | |||||||||
International Select | ||||||||||||
Class A(1) | 2,291,138 | $ | 24,491,390 | $ | 10.69 | |||||||
Class C | 289,707 | 3,054,146 | 10.54 | |||||||||
Class I | 40,692,336 | 435,909,964 | 10.71 |
(1) | Class R3 Shares of the Acquired Fund were converted into Class A Shares of the Acquiring Fund. |
The beginning of the Acquired Fund’s current fiscal period was November 1, 2012. Assuming the Reorganization had been completed on November 1, 2012, the beginning of the Acquiring Fund’s current fiscal period, the pro forma results of operations for the fiscal year ended October 31, 2013, are as follows:
International Select | ||||
Net investment income (loss) | $ | 3,787,497 | ||
Net realized and unrealized gains (losses) | 94,052,750 | |||
Change in net assets resulting from operations | 97,840,247 |
Because the combined investment portfolios for the Reorganization have been managed as a single integrated portfolio since the Reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the Statement of Operations for the Acquiring Fund since the Reorganizations were consummated.
In connection with the Reorganization, the Acquiring Fund incurred certain associated costs and expenses. Such amounts are recognized as “Reorganization expenses” on the Statement of Operations.
9. New Accounting Pronouncements
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.
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Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 206 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 206 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 206 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 206 | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company; (2006-2013) retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 206 |
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Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Chairman of the Board of Trustees of Marian University (since 2010 as trustee, 2011 as Chairman); Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 206 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 206 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) and CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 206 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 206 | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 206 |
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Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Interested Board Members: | ||||||||
William Adams IV(2) 1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Senior Executive Vice President, Global Structured Products (since 2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | 135 | ||||
Thomas S. Schreier, Jr.(2) 1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | 135 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 206 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 206 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 206 | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (2010-2011), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Senior Vice President (since 2013), formerly, Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 206 |
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Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 206 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 206 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 206 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 206 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 206 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 206 | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 103 |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
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Annual Investment Management Agreement Approval Process (Unaudited)
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 “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between (a) with respect to each Fund, the Adviser and Nuveen Asset Management, LLC (“Nuveen Asset Management”), (b) with respect to the Nuveen International Select Fund (the “International Fund”), the Adviser and Altrinsic Global Advisors, LLC (“Altrinsic”), and (c) with respect to the International Fund, the Adviser and Lazard Asset Management LLC (“Lazard”), and their periodic continuation. (Nuveen Asset Management, Altrinsic and Lazard are referred to collectively as the “Sub-Advisers” and the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements.”) 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 Adviser and the Sub-Advisers (the Adviser and the Sub-Advisers 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 Adviser’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 Adviser of the Sub-Advisers which generally evaluated each Sub-Adviser’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 Adviser with questions and the Adviser 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 Adviser and the Sub-Advisers. 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 Adviser 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 Adviser 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 Adviser. 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 Adviser 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-adviser 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 Nuveen Asset Management’s investment teams in Minneapolis in September 2012, and its 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
64 | Nuveen Investments |
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.
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 Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’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 Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser(s) generally provide 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 investment team(s) of the applicable Sub-Adviser(s) and changes thereto, organization and history, assets under management, the investment team or teams’ philosophies and strategies in managing the Fund, developments affecting the Sub-Adviser(s) 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 Adviser’s execution of its oversight responsibilities over the Sub-Advisers. 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 Adviser’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 Adviser 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 Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’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 Adviser’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 Adviser 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 Adviser, 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 Adviser 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 Adviser’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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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., generally 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 Tactical Market Opportunities Fund (the “Tactical 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.
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 Adviser classified, in relevant part, the Performance Peer Groups of certain funds (including the International Fund) as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds 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 Adviser 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 Tactical Fund lagged its Performance Peer Group over various periods, performing in the fourth quartile for the one-year period and the third quartile for the three-year period. In addition, the International Fund lagged its peers and benchmarks over various periods. In this regard, such Fund performed in the fourth quartile and underperformed its benchmark for the one- and three-year periods, but performed in the second quartile and outperformed its benchmark for the five-year period.
As described above, for funds with challenged performance, the Board considered and discussed the factors contributing to the results. In this regard, the Board noted certain changes to the investment personnel and sub-advisers of the International Fund. The Board is encouraged by these steps and will continue to monitor management’s progress on these issues in general and for the International Fund, in particular, as well as any further steps proposed or taken to address performance issues. In light of the objective of the Tactical Fund and its performance compared to the benchmark, the Board will also continue to monitor the performance of this Fund.
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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 ratio 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 Funds had slightly higher net management fees than their respective peer averages, but net expense ratios that were below or in line with their respective peer averages.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have at least one sub-adviser, and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser(s). In this regard, each Fund has an affiliated sub-adviser (i.e., Nuveen Asset Management) and, in addition, the International Fund has two non-affiliated sub-advisers (i.e., Altrinsic and Lazard). In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser(s). The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through Nuveen Asset Management, and the range of fees and average fee that Nuveen Asset Management assessed for such services to other clients. Such other clients for Nuveen Asset Management 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 Adviser are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Adviser 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.
With respect to the International Fund, in considering the fees of Altrinsic and Lazard, the Independent Board Members also considered the pricing schedule or fees that each such Sub-Adviser charges for other clients. The Independent Board Members further noted that the fees paid to such Sub-Advisers for their sub-advisory services were at or below the low end of their fee schedule or of their average fees earned. The Independent Board Members also noted that the International Fund’s sub-advisory fees to Altrinsic and Lazard were the result of arm’s-length negotiations.
Nuveen Investments | 67 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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 Adviser’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 Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to Nuveen Asset Management, the Independent Board Members reviewed such Sub-Adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Similarly, with respect to Altrinsic and Lazard, the Independent Board Members also considered such Sub-Advisers’ revenues, expenses and profitability margins for their advisory activities with the International Fund. Based on their review, the Independent Board Members were satisfied that each Sub-Adviser’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.
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.
68 | Nuveen Investments |
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 Adviser, 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 applicable Sub-Adviser(s). Accordingly, the Independent Board Members considered that each Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the portfolio transactions of the applicable Fund(s). 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, a Sub-Adviser may also engage in soft dollar arrangements on behalf of other clients, and a Fund as well as such Sub-Adviser may benefit from the research or other services received. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by a Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of such Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Advisers’ profitability may be somewhat lower if they did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with a Fund 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 | 69 |
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 distributions and capital gains, if any) over the time period being considered.
BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index: The BofA/Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that is comprised of a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Beta: A measure of the variability of the change in the share price for a fund in relation to a change in the value of the fund’s market benchmark. Securities with betas higher than 1.0 have been, and are expected to be, more volatile than the benchmark; securities with betas lower than 1.0 have been, and are expected to be, less volatile than the benchmark.
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.
Dow Jones Industrial Average Index: A price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI EAFE Index: The MSCI (Morgan Stanley Capital International) EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Emerging Markets Index: An unmanaged index considered representative of stocks of developing countries. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Japan Index: A capitalization-weighted index, adjusted for free float. The index is designed to reflect the sectoral diversity of the Japanese equity markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Lipper International Multi-Cap Growth Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper International Multi-Cap Growth Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Flexible Portfolio Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper 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.
MSCI All Country World Investable Market Index (ex U.S.): The MSCI (Morgan Stanley Capital International) All Country World Investable Market Index (ex U.S.) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 45 country indexes comprising 24 developed and 21 emerging market countries. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Fund | % of DRD | % of QDI | ||||||
Nuveen International Select Fund | 3.00% | 100.00% | ||||||
Nuveen Tactical Market Opportunities Fund | 0.00% | 16.00% |
Foreign Taxes: Nuveen International Select Fund paid qualifying foreign taxes of $864,622 and earned $7,955,922 of foreign source income, during the fiscal year ended October 31, 2013. Pursuant to Section 853 of the Internal Revenue Code, Nuveen International Select Fund hereby designates $0.02 per share as foreign taxes paid, and $0.18 per share as income earned from foreign sources, for the fiscal year ended October 31, 2013. The actual foreign tax credit distribution will be reported to shareholders on Form 1099-DIV, which will be sent to shareholders shortly after calendar year end. | ||||||||||||||
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC -0330 for room hours and operation. | ||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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. | ||||||||||||||
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The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program. |
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Serving Investors for Generations | ||||||||||||||
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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.
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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 $215 billion as of September 30, 2013. | ||||||||||||||
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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
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MAN-FQTII-1013P
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Mutual Funds |
Nuveen Equity Funds |
For investors seeking the potential for long-term capital appreciation. |
| Annual Report October 31, 2013 |
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Nuveen Large Cap Growth Opportunities Fund | FRGWX | FETBX | FAWCX | FLCYX | FLCFX | FIGWX | ||||||||||||
Nuveen Mid Cap Growth Opportunities Fund | FRSLX | FMQBX | FMECX | FMEYX | FMEFX | FISGX | ||||||||||||
Nuveen Small Cap Growth Opportunities Fund | FRMPX | — | FMPCX | FMPYX | — | FIMPX |
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Life is Complex. | ||||||||||||
Nuveen makes things e-simple. | ||||||||||||
It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. | ||||||||||||
Free e-Reports right to your e-mail! | ||||||||||||
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or | www.nuveen.com/accountaccess If you receive your Nuveen Fund distributions and statements
Must be preceded by or accompanied by a prospectus.
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Nuveen Investments | 3 |
Chairman’s Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
December 23, 2013
4 | Nuveen Investments |
Nuveen Large Cap Growth Opportunities Fund
Nuveen Mid Cap Growth Opportunities Fund
Nuveen Small Cap Growth Opportunities Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments.
Harold (Hal) Goldstein, Scott Mullinix, CFA, and James (Jim) Diedrich, CFA, are the portfolio managers for the Nuveen Large Cap Growth Opportunities Fund. Hal assumed portfolio management responsibilities in 2002. Scott and Jim have been on the management team for the Fund since 2006.
Jim, Hal and Scott are also the portfolio managers for the Nuveen Mid Cap Growth Opportunities Fund. Jim and Scott assumed portfolio management responsibilities in 2006. Hal has been on the management team of the Fund since 2005.
Rob McDougall, CFA, and Jon Loth, CFA, are the portfolio managers for the Nuveen Small Cap Growth Opportunities Fund. Rob assumed portfolio management responsibilities in 2004. Jon has been on the management team for the Fund since 2007.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2013.
What factors affected the U.S. economy and the equity market during the twelve-month reporting period ended October 31, 2013?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013, the Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic
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.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Federal Reserve’s target of 6.5%. As of October 2013, the national unemployment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown if it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Federal Reserve’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility.
For much of the reporting period, low interest rates and a fairly benign macro environment caused U.S. investors to move out the risk spectrum, resulting in robust flows into U.S. equity funds. Leading U.S. stock market indexes, including the S&P 500® Index, the Dow Jones Industrial Average and the Russell 2000® Index, each hit all-time highs during the reporting period. The S&P 500® Index gained 27% during the reporting period. Sluggish global growth, muted global inflation and ongoing fiscal drag provided a backdrop for continued monetary policy actions outside the U.S. as well, which drove strong equity market advances globally. In Japan, newly elected Prime Minister Shinzo Abe articulated policies designed to reinvigorate Japan’s weak economy. Widespread optimism for his strategies led to a massive rally in the Japanese equity market, which was up 34% during this reporting period, according to MSCI. Elsewhere, the European Central Bank signaled an extended period of low rates while the U.K.’s Bank of England pursued its most aggressive monetary policy to date. Returns for developed markets outside the U.S. were very strong, as evidenced by the MSCI EAFE Index’s advance of 26% for the reporting period. In emerging market countries, which are more dependent on global growth and commodity prices, stocks significantly lagged developed markets with a 6% return during this reporting period, according to the MSCI Emerging Market Index.
Nuveen Large Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) slightly outperformed the Russell 1000® Growth Index, but underperformed the Lipper classification average during the twelve-month period.
6 | Nuveen Investments |
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies that have market capitalizations of $5 billion or greater at the time of purchase. We start by identifying what we believe are exceptional growth companies with open-ended growth prospects, outstanding financial characteristics and solid management teams. From that highly selective group, we invest in companies where our expectations for earnings growth exceed consensus expectations. For each Fund holding, we develop a proprietary growth thesis. When the growth thesis is validated, we hold or buy more; however, when our growth thesis is not validated, we sell the holding. Although we made individual position changes during the reporting period, our underlying investment strategy remained consistent.
During the reporting period’s significant stock market advance, the Fund experienced strong absolute returns as our stock selection helped it to slightly outpace the Russell 1000® Growth Index. Also, the Fund’s orientation toward exceptional growth companies (higher quality names with higher growth rates and, therefore, higher valuations) proved helpful. Companies with higher growth rates were in favor throughout the reporting period. During the first six months of the reporting period, lower quality companies performed better as investors flocked to these stocks because of the highly accommodative Fed and the moderately improving economic backdrop. However, higher quality names came back into favor during the second half of the reporting period after interest rates started rising in reaction to the Fed’s tapering discussion. The Fund’s sector weights did not meaningfully impact performance.
In aggregate, stock selection was strongest in technology, which was noteworthy because the sector was the worst performing area within the Russell benchmark during the reporting period. Outperformance in technology was led by a position in LinkedIn, Inc., the leading online social network for the world’s professionals to manage and share their work-related identities. The company continued to produce a strong underlying core growth rate as human resource professionals increasingly used the service for recruitment. At the same time, the market began to recognize the opportunity for future strong advertising revenues from LinkedIn’s mobile social advertising platform. Also, our positions in two leading credit card companies in the technology sector outperformed during the reporting period: MasterCard Inc. and Visa Inc. Both of these firms (and to a lesser extent, other Fund outperformers such as American Express Company and Alliance Data Systems Corporation) benefited from the global secular trend of credit and debit cards taking market share away from cash and check transactions. We believe this growing trend, as well as the slowly improving global economic backdrop, will likely continue to benefit these companies as transaction growth remains robust. In addition, several emerging growth software companies aided the Fund’s results. The first two holdings, NetSuite Inc. and ServiceNow, benefited from the expanding migration of companies toward more economical, off-premise cloud technology and away from on-premise hardware and software. NetSuite, which sells application software to help firms run their businesses using cloud-based technology, continued to produce strong revenue and earnings growth. At the same time, it benefited from an expansion of its core product line, which is helping to increase its reach within enterprises. ServiceNow, which helps businesses automate and manage their IT services in the cloud, was also a top performer as its earnings soundly beat analysts’ estimates. In addition, the Fund was rewarded for its position in Splunk Inc., a company that enables enterprises to collect and analyze the machine data generated by their technology infrastructure in order to improve the efficiency of their IT systems. The company’s stock price advanced as it continued to attract new customers, develop innovative new products, improve revenue and offer strong forward looking guidance.
The Fund’s top individual contributor during the reporting period was Gilead Sciences Inc., a biotechnology and pharmaceutical company. Gilead Sciences’ stock price advanced strongly, while investors gained more confidence in the long-term nature of its pipeline from its strong core HIV business and its new Hepatitis C line.
Nuveen Investments | 7 |
Portfolio Managers’ Comments (continued)
In the consumer discretionary sector, leading on-line travel agency priceline.com Inc. continued to perform well during the reporting period, posting robust top-line growth. Priceline.com gained market share in Europe despite that region’s slow growth, while overcoming concerns about more expensive advertising and competitive pressures. Also, the stock price of leading coffeehouse chain Starbucks Corporation continued its steady upward march during the reporting period. Investors increasingly recognized that the company has a number of growth drivers in terms of both geographic expansion and additional offerings. Starbucks continued to benefit from strong same-store sales and its acquisition of La Boulange, which may help jump-start its new bakery initiative. In addition, lower coffee input costs helped the company improve its margins.
The Fund experienced success within the energy sector from its position in Pioneer Natural Resources Co., an oil-focused exploration and production company. Pioneer owns attractive asset positions predominantly in a highly productive region in Texas and New Mexico called the Permian Basin. The company has been able to increase production in its shale oil and gas fields through advanced extraction techniques, leading to robust future growth prospects.
A few stock selection challenges offset some of the above-mentioned successes and contributed to the Fund’s shortfall versus the Lipper average. One of the Fund’s long-term success stories in the technology sector, smart phone and tablet developer Apple Inc., was the biggest detractor. Although Apple continued to be profitable and generate significant free cash flow, it stopped gaining market share within the smart phone industry. Apple’s stock price corrected as investors debated its short- and long-term growth trends in the face of the maturing penetration of smart phones in developed markets and competitive shifts within the industry. We significantly reduced the Fund’s Apple exposure to an underweight during the reporting period. Also, our holding in Rackspace Hosting Inc., a cloud-computing and web-hosting company, proved disappointing after its revenue fell short of expectations. Investors grew concerned over its future growth rate as the company’s current business model transition to the cloud has been at a slower pace than anticipated. With our growth thesis for Rackspace Hosting called into question, we eliminated this holding from the Fund.
In the financial sector, the Fund experienced underperformance from cell phone tower provider American Tower Corporation, which is structured as a real estate investment trust (REIT). The company’s more stable, bond-like nature caused it to suffer, along with the rest of the REIT industry, when interest rates increased. Because we believe there is nothing fundamentally wrong with the company, we continue to own an overweight position in American Tower.
Within the health care sector, a couple of issues related to the Affordable Care Act (ACA) weighed on Express Scripts Holding Company, the nation’s leading prescription benefit manager. Early in the reporting period, Express Scripts experienced its stock price drop precipitously after completing a major merger, while providing preliminary 2013 guidance that was deliberately ambiguous because of the uncertainty surrounding the impact of the ACA on its subscriber base. Its stock remained under pressure as an increasing number of employers pushed retirees and current employees out of employer-sponsored insurance and to the ACA exchanges. Because of the ongoing questions surrounding our original growth thesis with Express Scripts, we sold out of the Fund’s position.
Home builder Lennar Corporation, which we bought and then subsequently sold during the reporting period, was also a detractor. We initially purchased this more cyclical holding to participate in the improving housing industry. In hind sight, our timing was not optimal as the interest rate environment changed drastically given the Fed’s tapering discussion shortly after our purchase. We sold the Fund’s position in Lennar given the short-term impact that rising rates had on company fundamentals and the uncertainty over what higher interest rates might do in the future.
8 | Nuveen Investments |
We remained focused on searching for new emerging growth opportunities that have strong potential as future industry leaders. To that end, we invested the proceeds from the above-mentioned sales into several exciting new prospects including: on-line business review site Yelp Inc.; advertiser-supported internet radio provider Pandora Media Inc.; and travel review web site TripAdvisor, Inc.
Nuveen Mid Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) underperformed the Russell Midcap® Growth Index and the Lipper classification average during the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in the common stocks of companies that have market capitalizations between approximately $699 million and $19.2 billion at the time of purchase. We start by identifying what we believe are exceptional growth companies with open ended growth prospects, outstanding financial characteristics and solid management teams. From that highly selective group, we invest in companies where our expectations for earnings growth exceed consensus expectations. For each Fund holding, we develop a proprietary growth thesis. When the growth thesis is validated, we hold or buy more; however, when our growth thesis is not validated, we sell the holding. Although we made individual position changes during the reporting period, our underlying investment strategy remained consistent.
The Fund’s stock selection in the consumer discretionary sector accounted for much of the shortfall versus the Russell benchmark and Lipper average. The first such example was Tesla Motors, a developer and manufacturer of high-tech electric luxury vehicles. Although the company is not a large weight in the index, its stock advanced dramatically after reporting a first-ever profit in the first quarter of 2013. Likewise, leading internet television network Netflix Inc., while not a large index component, advanced significantly during the reporting period. Netflix continued to benefit as it posted higher-than-expected growth for its subscription video streaming service. Ulta Salon Cosmetics, a leading beauty retailer for cosmetics, fragrance, haircare and skincare products, was another detractor. Early in the reporting period, the Fund had an overweight position in this stock; however, we sold it after two of its top executives resigned, because a strong management team is part of our “exceptional growth company” mandate. However, Ulta’s stock continued to advance as the company produced favorable results and quickly replaced its CEO by mid-summer. In addition, two other longer term success stories in the retail segment fell short of expectations. PetSmart Inc., a large specialty retailer of products and services for pets, underperformed as its growth rate was not as high as anticipated. In addition to a slowdown in sales and earnings, PetSmart announced the retirement of its long-time CEO and a subsequent management reshuffle. However, we continued to own PetSmart because we believe the longer term drivers for improving earnings were still in place. We sold out of the Fund’s other retail underperformer, Dicks Sporting Goods. Dicks Sporting did not meet earnings expectations for several quarters because of weather-related issues and overall weakness in the retail sector. The Fund did have one bright spot in the discretionary sector, leading on-line travel agency priceline.com Inc. The company continued to execute well during the reporting period, posting robust, top-line growth. Priceline.com gained market share in Europe despite that region’s slow growth, while overcoming concerns about more expensive advertising and competitive pressures.
Nuveen Investments | 9 |
Portfolio Managers’ Comments (continued)
Results within the health care sector were mixed, while our stock selection in aggregate was positive, the Fund’s overweight to medical equipment and corresponding underweight to biotechnology/pharmaceuticals was a significant drag on results. The medical equipment industry within the health care sector advanced 23% during the reporting period, while the biotech/pharma group rose nearly 50%. Our favorable stock selection included two biotech/pharma companies, Regeneron Pharmaceuticals Inc. and Onyx Pharmaceuticals Inc. Regeneron reported strong results during the reporting period. Onyx, which develops drugs to combat cancer, benefited from a buyout offer from Amgen during the summer that was completed by the end of the reporting period. Underperformance within the Fund included: IDEXX Laboratories Inc., which manufactures and distributes diagnostic equipment for veterinarians, and Alexion Pharmaceuticals Inc., which focuses on the discovery and development of biologics that target ultra-rare diseases. In the case of IDEXX Laboratories, money flowed away from this high quality, high valuation stock after the company reported earnings that were in line, while other similar firms were reporting earnings that exceeded expectations. We sold the Fund’s position in IDEXX Laboratories. The stock price of Alexion Pharmaceuticals also came under pressure, despite the company’s strong earnings. The U.K.’s universal health care system debated plans to discontinue payment for this company’s extremely expensive treatments, or force it to lower pricing. We sold out of the Fund’s position in Alexion Pharmaceuticals during this uncertainty and then bought it back after the situation was favorably resolved.
Stock selection was strongest within the technology sector. The Fund’s outperformers included emerging growth companies focused on the internet or cloud-based technology that benefited at the expense of legacy technology. Outperformance was led by a position in LinkedIn, Inc., the leading online social network for the world’s professionals to manage and share their work-related identities. The company continued to produce a strong underlying core growth rate as human resource professionals increasingly used the service for recruitment. At the same time, the market began to recognize the opportunity for future strong advertising revenues from LinkedIn’s mobile social advertising platform. In addition, the Fund was rewarded for its position in Splunk Inc., a company that enables enterprises to collect and analyze the machine data generated by their technology infrastructure in order to improve the efficiency of their IT systems. The company’s stock price advanced as it continued to attract new customers, develop innovative new products, improve revenue and offer strong forward looking guidance. The Fund also benefited from its position in FleetCor Technologies Inc., a provider of customized payment solutions for small fleet operators in the U.S. and overseas. The company continued to show superior execution as it expanded overseas and increased the usage of its payment cards. FleetCor’s subsequent increase in profitable market share has led to upward revisions in earnings estimates. Pandora Media, the market leader in providing advertiser-supported internet radio, also performed well. The company made significant progress toward better monetizing its users by reducing the gap between its share of listening hours and its share of radio advertising dollars. Pandora also made strong gains in market share within the overall radio market as more listeners continued to shift from traditional to internet radio.
Within the financial sector, the Fund’s lack of exposure to real estate investment trusts (REITs) compared to the benchmark’s 3.4% weight was helpful. Particularly in the second half of the reporting period, the entire REIT segment was negatively impacted by the Fed’s discussion of tapering and the ensuing increase in long-term interest rates. We viewed REITs as overvalued as money had previously flowed into the segment due to its defensive characteristics and yield. The Fund also benefited from our well-timed purchase of Moody’s Corporation, a leading credit ratings provider. We bought this growth company with a solid business model early in the reporting period when its stock price was unusually depressed based on regulatory and legal concerns facing the entire rating industry. After our purchase, these concerns lifted and Moody’s stock price subsequently rose. In addition, investment management firm Affiliated Managers Group Inc. was another outperformer for the Fund. The company, which owns stakes in a number of private equity, asset management and hedge fund firms, benefited from the solid performance of its fund line-up and some of the strongest money flows in the money management industry.
10 | Nuveen Investments |
Although overall stock selection in consumer staples was negative, the Fund had one strong performer: Nu Skin Enterprises. This leading developer and marketer of anti-aging skincare products and nutritional supplements saw its stock price revalued upward as it reported stronger-than-expected earnings, revenues and margins and raised forward-looking guidance. Nu Skin is also benefiting from news of a new weight control product line that should launch around year end. Finally, within energy, the Fund’s position in Core Laboratories N.V. outpaced the strong performance of the overall sector due to several favorable earnings reports during the reporting period. Core Laboratories acts as a consultant to energy and production companies worldwide, offering proprietary reservoir description, production enhancement and reservoir management services. The company has continued to post consistent growth, driven by the expansion of global drilling into new deep water regions and oil shales worldwide.
We remained focused on searching for exceptional growth companies that have the potential to become future industry leaders. At the same time, we continued to shift the Fund’s holdings away from more defensive, stable companies and toward more emerging growth areas. To that end, the Fund ended the reporting period with no exposure to utilities, telecommunication services or REITs, and an underweight to the consumer staples sector. In technology, we added to the Fund’s exposure in the emerging internet and cloud-computing areas, while selling holdings from the legacy technology category. Recent purchases included: Yelp Inc., an on-line business review site; ServiceNow, a cloud-based software company that automates enterprise IT operations; Workday, Inc., a provider of enterprise cloud-based applications for human resources and finance; and TripAdvisor, Inc., which runs a travel review web site. We also added slightly to the Fund’s financial exposure via two new positions that stand to benefit when the Fed ends its quantitative easing campaign and interest rates continue to rise from current levels. These additions included TD Ameritrade Holding Corporation, a leading discount brokerage company that has consistently gained market share over the years, and CBOE Holdings Inc., a derivatives exchange company. Finally, we sold a long-term favorite from the Fund, wireless tower operator SBA Communications Corporation, due to our shift away from defensive, stable companies.
Nuveen Small Cap Growth Opportunities Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed the Lipper classification average, but trailed slightly relative to the Russell 2000® Growth Index during the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in equity securities of companies with market capitalizations of less than $3 billion at the time of purchase. The investment process employed in the management of the Fund seeks to exploit secular growth trends that we believe will provide an investment tailwind to above-average growth that should transcend the business cycle over the longer term. Importantly, our process also emphasizes a valuation discipline designed to find attractive investment opportunities that should benefit from multiple expansion when particular investment catalysts become evident in the marketplace. The Fund’s portfolio typically features investments in high quality companies with attractive or improving margin profiles, generally healthy balance sheets and prospects for above-average revenue and earnings growth.
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Portfolio Managers’ Comments (continued)
The performance of small-cap stocks during the reporting period was remarkably strong, driven by continued indications of stability and growth in the domestic economy, coupled with the Fed’s expressed intention of continuing monetary stimulus into the early stages of 2014. The Fed’s open-market purchases appear to be having the desired effect of lowering unemployment, stimulating the housing market and, therefore, boosting consumer confidence; however, the anticipation of an eventual tapering of the stimulus program may ultimately bring security valuation back into focus as a factor in relative investment performance. As price momentum has been the predominant factor associated with excess returns over the past year, our strategy of coupling secular investment themes with security valuation has generally kept pace with the Russell 2000® Growth Index, while outperforming our Lipper classification average. Also, we are encouraged with the outlooks provided by the companies held in the Fund following the reporting of calendar third-quarter earnings.
Security selection within the energy sector was the most positive contributor to the Fund’s relative performance and was derived from both the energy services and production subsectors. The Fund’s energy services holdings were concentrated among higher margin equipment names such as Dril-Quip Inc. and Lufkin Industries Inc. that benefited as firm oil prices drove strong production activity and rising margins. The former of these is a leading manufacturer of sub-sea wellheads used in offshore production that has provided several positive quarterly updates highlighted by strong backlog activity and gradually expanding operating margins. Lufkin Industries is a leading provider of on-shore artificial lift equipment that was acquired by General Electric Co. for a significant premium in April 2013. The Fund also benefited through its holdings of Oasis Petroleum Inc. and Diamondback Energy Inc., which operate in the Williston Basin and Permian Basin, respectively. Both companies announced acreage and mineral rights transactions during the third quarter of 2013 that were well received by investors.
The Fund’s financial sector holdings also contributed positively to relative performance. In general, the Fund’s overweight position in regional banks and underweight position in real estate investment trusts (REITs) was additive to performance as rising long-term interest rates tend to benefit the earnings of asset-sensitive banks, while reducing the relative attractiveness of dividend yield plays. Shares of Home BancShares Inc., an Arkansas-based regional bank with significant exposure to the Florida market, performed well during the reporting period due to a combination of solid quarterly execution and the announcement of a highly accretive acquisition, Liberty Bancshares Inc. Additionally, shares of East West Bancorp Inc., the largest U.S.-based bank focused on the Chinese-American community, rose throughout the reporting period as the bank posted results consistently better than expectations. Finally, shares of Evercore Partners Inc. performed well as the company continued to take market share in the mergers and acquisition advisory business from larger, diversified capital markets firms.
The consumer discretionary sector also provided a lift to the Fund’s relative performance, most notably by our holding in Brunswick Corporation. This manufacturer of marine engines, boats and fitness equipment showed strong performance as it benefited from share gains in the boating industry. Additionally, shares of Caribou Coffee Company Inc., a smaller-sized coffee company that was building a regional retail concept of coffee houses as well as supplying coffee to grocery and retail chains, announced that it would be purchased by a German private equity firm for a significant premium.
The most significant detractor to the Fund’s relative performance was stock selection in the information technology sector. Shares of LogMeIn Inc., the market’s leading remote connection and troubleshooting provider for cloud-based services, fell significantly after the company posted solid fourth quarter 2012 results, but guided to revenue growth for calendar 2013 that was considerably below investors’ expectations. The Fund’s position in Fortinet Inc., a leading provider of network security hardware appliances, was also under pressure. The company pre-released disappointing
12 | Nuveen Investments |
first-quarter results due to a shift in carrier spending behavior, macroeconomic weakness in Latin America and Europe as well as disruptions associated with a product transition. Additionally, shares of Silicon Laboratories Inc., a mixed signal analog semiconductor design firm, performed poorly in the first half of calendar 2013 as the company struggled with a faster-than-anticipated run-off of legacy modem and FM tuner business. Silicon Laboratories shares were further pressured after the company disclosed an expected earnings dilution from its acquisition of microcontroller design firm Energy Micro AS in June 2013.
While the Fund’s weighting in the information technology sector is generally in line with that of the benchmark Russell 2000® Growth Index, we have shifted from the more cyclical groups such as semiconductors and communications equipment toward companies providing software-as-a-service solutions and internet service offerings and continue to evaluate names that meet our growth and valuation criteria. With the financial sector, we remain close to the benchmark weight in the group, with overweight exposure to regional banking and capital markets with no U.S. REIT exposure. Lastly, in the health care sector, we continue to position the group for secular growth in the medical devices and biotechnology groups that we believe may likely benefit from new product development and not be negatively impacted during the apparently troubled implementation phase of the Affordable Care Act.
Nuveen Investments | 13 |
Mutual fund investing involves risk; principal loss is possible.
Nuveen Large Cap Growth Opportunities Fund
Equity investments, such as those held by the Fund, are subject to market risk, active management risk, and growth stock risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Diversification does not assure a profit or protect against a loss in a declining market. The use of derivatives involves additional risk and transaction costs.
Nuveen Mid Cap Growth Opportunities Fund
Equity investments are subject to market risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. The use of derivatives involves additional risk and transaction costs. The Fund’s ability to invest in initial public offerings (IPOs) involves a higher degree of risk than more seasoned companies.
Nuveen Small Cap Growth Opportunities Fund
Equity investments are subject to market risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. The use of derivatives involves additional risks and transactions costs. The Fund’s ability to invest in initial public offerings (IPOs) involves a higher degree of risk than more seasoned companies. Small cap stocks involve substantial risk.
14 | Nuveen Investments |
Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown on the following six pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 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 waivers 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.
Nuveen Investments | 15 |
Fund Performance and Expense Ratios (continued)
Nuveen Large Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 28.39% | 16.23% | 7.75% | |||||||||
Class A Shares at maximum Offering Price | 21.00% | 14.86% | 7.12% | |||||||||
Russell 1000® Growth Index* | 28.30% | 17.51% | 7.70% | |||||||||
Lipper Large-Cap Growth Funds Classification Average* | 29.24% | 15.72% | 7.06% | |||||||||
Class B Shares w/o CDSC | 27.38% | 15.38% | 6.96% | |||||||||
Class B Shares w/CDSC | 22.38% | 15.27% | 6.96% | |||||||||
Class C Shares | 27.43% | 15.36% | 6.95% | |||||||||
Class R3 Shares | 28.07% | 15.95% | 7.50% | |||||||||
Class I Shares | 28.69% | 16.51% | 8.03% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 20.82% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 17.64% | 11.43% | 7.83% | |||||||||
Class A Shares at maximum Offering Price | 10.86% | 10.12% | 7.19% | |||||||||
Class B Shares w/o CDSC | 16.75% | 10.62% | 7.04% | |||||||||
Class B Shares w/CDSC | 11.75% | 10.48% | 7.04% | |||||||||
Class C Shares | 16.75% | 10.59% | 7.02% | |||||||||
Class R3 Shares | 17.34% | 11.16% | 7.58% | |||||||||
Class I Shares | 17.92% | 11.70% | 8.10% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 15.29% |
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 | ||||
Class A Shares | 1.25% | |||
Class B Shares | 1.99% | |||
Class C Shares | 2.00% | |||
Class R3 Shares | 1.50% | |||
Class R6 Shares | 0.94% | |||
Class I Shares | 1.00% |
16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
** | Since inception returns for Class R6 Shares are from 2/28/13. |
Nuveen Investments | 17 |
Fund Performance and Expense Ratios (continued)
Nuveen Mid Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 30.27% | 19.25% | 9.94% | |||||||||
Class A Shares at maximum Offering Price | 22.77% | 17.84% | 9.30% | |||||||||
Russell Midcap® Growth Index* | 33.93% | 20.32% | 9.60% | |||||||||
Lipper Mid-Cap Growth Funds Classification Average* | 32.81% | 18.15% | 8.69% | |||||||||
Class B Shares w/o CDSC | 29.29% | 18.35% | 9.12% | |||||||||
Class B Shares w/CDSC | 24.29% | 18.25% | 9.12% | |||||||||
Class C Shares | 29.33% | 18.36% | 9.13% | |||||||||
Class R3 Shares | 29.97% | 18.95% | 9.69% | |||||||||
Class I Shares | 30.60% | 19.54% | 10.22% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 20.12% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 21.67% | 13.82% | 10.48% | |||||||||
Class A Shares at maximum Offering Price | 14.67% | 12.48% | 9.83% | |||||||||
Class B Shares w/o CDSC | 20.74% | 12.97% | 9.65% | |||||||||
Class B Shares w/CDSC | 15.74% | 12.84% | 9.65% | |||||||||
Class C Shares | 20.78% | 12.97% | 9.66% | |||||||||
Class R3 Shares | 21.38% | 13.53% | 10.23% | |||||||||
Class I Shares | 22.00% | 14.11% | 10.76% |
Cumulative | ||||
Since | ||||
Class R6 Shares | 17.06% |
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 | ||||
Class A Shares | 1.30% | |||
Class B Shares | 2.05% | |||
Class C Shares | 2.05% | |||
Class R3 Shares | 1.55% | |||
Class R6 Shares | 0.96% | |||
Class I Shares | 1.05% |
18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
** | Since Inception returns for Class R6 Shares are from 2/28/13. |
Nuveen Investments | 19 |
Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Growth Opportunities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 39.22% | 20.23% | 7.41% | |||||||||
Class A Shares at maximum Offering Price | 31.19% | 18.81% | 6.78% | |||||||||
Russell 2000® Growth Index* | 39.84% | 19.27% | 9.14% | |||||||||
Lipper Small-Cap Growth Funds Classification Average* | 37.41% | 19.23% | 8.71% | |||||||||
Class C Shares | 38.17% | 19.34% | 6.61% | |||||||||
Class R3 Shares | 38.86% | 19.93% | 7.18% | |||||||||
Class I Shares | 39.55% | 20.54% | 7.67% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 29.02% | 14.06% | 8.18% | |||||||||
Class A Shares at maximum Offering Price | 21.58% | 12.72% | 7.54% | |||||||||
Class C Shares | 28.02% | 13.20% | 7.37% | |||||||||
Class R3 Shares | 28.65% | 13.78% | 7.94% | |||||||||
Class I Shares | 29.32% | 14.35% | 8.44% |
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Gross | Net | |||||||
Class A Shares | 1.70% | 1.47% | ||||||
Class C Shares | 2.44% | 2.22% | ||||||
Class R3 Shares | 1.94% | 1.72% | ||||||
Class I Shares | 1.45% | 1.22% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2014, so that total annual fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.47%, 2.22%, 1.72% and 1.22% for Class A, Class C, Class R3 and Class I shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
Nuveen Investments | 21 |
Holding Summaries October 31, 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 Large Cap Growth Opportunities Fund
Fund Allocation1
Common Stocks | 100.1% | |||
Short-Term Investments | 0.5% | |||
Other2 | (0.6)% |
Portfolio Composition1
Internet Software & Services | 8.2% | |||
Software | 7.1% | |||
Media | 6.7% | |||
Specialty Retail | 6.4% | |||
IT Services | 6.0% | |||
Biotechnology | 5.6% | |||
Internet & Catalog Retail | 5.2% | |||
Computers & Peripherals | 3.8% | |||
Aerospace & Defense | 3.7% | |||
Chemicals | 3.5% | |||
Machinery | 3.2% | |||
Hotels, Restaurants & Leisure | 3.2% | |||
Food & Staples Retailing | 3.0% | |||
Pharmaceuticals | 2.9% | |||
Road & Rail | 2.3% | |||
Oil, Gas & Consumable Fuels | 2.3% | |||
Airlines | 2.2% | |||
Tobacco | 2.1% | |||
Capital Markets | 1.8% | |||
Health Care Technology | 1.7% | |||
Short-Term Investments | 0.5% | |||
Other3 | 18.6% |
Top Five Common Stock Holdings1
Google Inc., Class A | 4.2% | |||
Apple, Inc. | 3.8% | |||
Gilead Sciences, Inc. | 2.9% | |||
MasterCard, Inc., Class A | 2.4% | |||
Visa Inc., Class A | 2.4% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 1.7% of net assets. |
22 | Nuveen Investments |
Nuveen Mid Cap Growth Opportunities Fund
Fund Allocation1
Common Stocks | 97.7% | |||
Short-Term Investments | 2.1% | |||
Other2 | 0.2% |
Portfolio Composition1
Specialty Retail | 8.1% | |||
Software | 7.8% | |||
Machinery | 5.0% | |||
Oil, Gas & Consumable Fuels | 4.9% | |||
Capital Markets | 4.7% | |||
Chemicals | 4.6% | |||
Electrical Equipment | 3.9% | |||
Internet Software & Services | 3.8% | |||
Pharmaceuticals | 3.5% | |||
Health Care Providers & Services | 3.4% | |||
Internet & Catalog Retail | 3.2% | |||
Textiles, Apparel & Luxury Goods | 2.8% | |||
Airlines | 2.8% | |||
Biotechnology | 2.8% | |||
IT Services | 2.6% | |||
Road & Rail | 2.6% | |||
Household Durables | 2.5% | |||
Electronic Equipment & Instruments | 2.4% | |||
Diversified Financial Services | 2.4% | |||
Energy Equipment & Services | 2.1% | |||
Hotels, Restaurants & Leisure | 2.1% | |||
Short-Term Investments | 2.1% | |||
Other3 | 19.9% |
Top Five Common Stock Holdings1
Wynn Resorts Ltd | 2.1% | |||
PPG Industries, Inc. | 2.0% | |||
BorgWarner Inc. | 2.0% | |||
Dollar Tree Stores Inc. | 1.7% | |||
Rockwell Automation, Inc. | 1.7% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 2.1% of net assets. |
Nuveen Investments | 23 |
Holding Summaries October 31, 2013 (continued)
Nuveen Small Cap Growth Opportunities
Fund
Fund Allocation1
Common Stocks | 94.9% | |||
Short-Term Investments | 3.9% | |||
Other2 | 1.2% |
Portfolio Composition1
Biotechnology | 7.0% | |||
Health Care Equipment & Supplies | 6.3% | |||
Software | 5.6% | |||
Internet Software & Services | 5.5% | |||
Semiconductors & Equipment | 4.8% | |||
Specialty Retail | 4.3% | |||
Oil, Gas & Consumable Fuels | 4.1% | |||
Health Care Providers & Services | 4.0% | |||
Communications Equipment | 4.0% | |||
Commercial Banks | 3.2% | |||
Aerospace & Defense | 3.0% | |||
Leisure Equipment & Products | 2.9% | |||
Capital Markets | 2.8% | |||
Machinery | 2.8% | |||
Household Durables | 2.8% | |||
Diversified Consumer Services | 2.8% | |||
Road & Rail | 2.7% | |||
Chemicals | 2.7% | |||
Construction & Engineering | 2.7% | |||
Food Products | 2.6% | |||
Short-Term Investments | 3.9% | |||
Other3 | 19.5% |
Top Five Common Stock Holdings1
Micros Systems, Inc. | 1.9% | |||
Plantronics Inc. | 1.8% | |||
East West Bancorp Inc. | 1.7% | |||
Energy XXI Limited Bermuda | 1.7% | |||
Team Health Holdings Inc. | 1.7% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 2.6% of net assets. |
24 | Nuveen Investments |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Growth Opportunities Fund
Actual Performance | Hypothetical Performance (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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,163.50 | $ | 1,158.70 | $ | 1,159.10 | $ | 1,162.00 | $ | 1,165.60 | $ | 1,165.10 | $ | 1,018.85 | $ | 1,015.02 | $ | 1,015.12 | $ | 1,017.54 | $ | 1,020.72 | $ | 1,020.11 | ||||||||||||||||||||||||
Expenses Incurred During Period | $ | 6.87 | $ | 10.99 | $ | 10.88 | $ | 8.28 | $ | 4.86 | $ | 5.51 | $ | 6.41 | $ | 10.26 | $ | 10.16 | $ | 7.73 | $ | 4.53 | $ | 5.14 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.26%, 2.02%, 2.00%, 1.52%, 0.89% and 1.01% for Classes A, B, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Investments | 25 |
Nuveen Mid Cap Growth Opportunities 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 (5/01/13) | $ | 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 (10/31/13) | $ | 1,159.70 | $ | 1,155.20 | $ | 1,155.30 | $ | 1,158.30 | $ | 1,161.90 | $ | 1,161.00 | $ | 1,018.65 | $ | 1,014.72 | $ | 1,014.87 | $ | 1,017.39 | $ | 1,020.57 | $ | 1,019.91 | ||||||||||||||||||||||||
Expenses Incurred During Period | $ | 7.08 | $ | 11.30 | $ | 11.14 | $ | 8.43 | $ | 5.01 | $ | 5.72 | $ | 6.61 | $ | 10.56 | $ | 10.41 | $ | 7.88 | $ | 4.69 | $ | 5.35 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.30%, 2.08%, 2.05%, 1.55%, 0.92% and 1.05% for Classes A, B, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Growth Opportunities Fund
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||
A Shares | C Shares | R3 Shares | I Shares | A Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 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 (10/31/13) | $ | 1,206.30 | $ | 1,201.30 | $ | 1,205.00 | $ | 1,207.50 | $ | 1,017.80 | $ | 1,014.06 | $ | 1,016.59 | $ | 1,019.11 | ||||||||||||||||
Expenses Incurred During Period | $ | 8.17 | $ | 12.26 | $ | 9.50 | $ | 6.73 | $ | 7.48 | $ | 11.22 | $ | 8.69 | $ | 6.16 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.47%, 2.21%, 1.71% and 1.21% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
26 | Nuveen Investments |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Investment Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations, of changes in net assets, and the financial highlights present fairly, in all material respects, the financial position of Nuveen Large Cap Growth Opportunities Fund, Nuveen Mid Cap Growth Opportunities Fund, and Nuveen Small Cap Growth Opportunities Fund (each a series of the Nuveen Investment Funds, Inc., hereinafter referred to as the “Funds”) at October 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of the Funds for the years ended October 31, 2011 and prior were audited by other independent auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
December 27, 2013
Nuveen Investments | 27 |
Portfolio of Investments October 31, 2013
Nuveen Large Cap Growth Opportunities Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 129.1% | ||||||||||||||
COMMON STOCKS – 100.1% | ||||||||||||||
Aerospace & Defense – 3.7% | ||||||||||||||
61,004 | Boeing Company | $ | 7,961,022 | |||||||||||
38,280 | Precision Castparts Corporation | 9,702,066 | ||||||||||||
54,328 | United Technologies Corporation | 5,772,350 | ||||||||||||
Total Aerospace & Defense | 23,435,438 | |||||||||||||
Airlines – 2.2% | ||||||||||||||
291,546 | Delta Air Lines, Inc., (2) | 7,690,983 | ||||||||||||
121,473 | Ryanair Holdings PLC, Sponsored ADR, (2) | 6,099,159 | ||||||||||||
Total Airlines | 13,790,142 | |||||||||||||
Auto Components – 1.1% | ||||||||||||||
69,754 | BorgWarner Inc., (2) | 7,193,730 | ||||||||||||
Automobiles – 1.0% | ||||||||||||||
102,024 | Harley-Davidson, Inc. | 6,533,617 | ||||||||||||
Biotechnology – 5.6% | ||||||||||||||
33,326 | Biogen Idec Inc., (3) | 8,137,876 | ||||||||||||
61,831 | Celgene Corporation, (3) | 9,181,285 | ||||||||||||
251,488 | Gilead Sciences, Inc., (2), (3) | 17,853,133 | ||||||||||||
Total Biotechnology | 35,172,294 | |||||||||||||
Capital Markets – 1.8% | ||||||||||||||
229,404 | Charles Schwab Corporation, (2) | 5,196,001 | ||||||||||||
36,116 | Goldman Sachs Group, Inc. | 5,809,620 | ||||||||||||
Total Capital Markets | 11,005,621 | |||||||||||||
Chemicals – 3.5% | ||||||||||||||
72,390 | Monsanto Company | 7,592,263 | ||||||||||||
43,482 | PPG Industries, Inc. | 7,938,944 | ||||||||||||
72,336 | W.R. Grace & Co., (3) | 6,630,318 | ||||||||||||
Total Chemicals | 22,161,525 | |||||||||||||
Computers & Peripherals – 3.8% | ||||||||||||||
45,841 | Apple, Inc. | 23,945,046 | ||||||||||||
Consumer Finance – 1.5% | ||||||||||||||
112,558 | American Express Company | 9,207,244 | ||||||||||||
Diversified Financial Services – 1.5% | ||||||||||||||
106,211 | JPMorgan Chase & Co. | 5,474,115 |
28 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Diversified Financial Services (continued) | ||||||||||||||
52,120 | Moody’s Corporation | $ | 3,682,799 | |||||||||||
Total Diversified Financial Services | 9,156,914 | |||||||||||||
Diversified Telecommunication Services – 0.9% | ||||||||||||||
115,100 | Verizon Communications Inc., (2) | 5,813,701 | ||||||||||||
Energy Equipment & Services – 0.9% | ||||||||||||||
63,260 | Oceaneering International Inc. | 5,432,769 | ||||||||||||
Food & Staples Retailing – 3.0% | ||||||||||||||
93,290 | Costco Wholesale Corporation | 11,008,220 | ||||||||||||
118,884 | Whole Foods Market, Inc., (2) | 7,505,147 | ||||||||||||
Total Food & Staples Retailing | 18,513,367 | |||||||||||||
Health Care Providers & Services – 1.3% | ||||||||||||||
51,197 | McKesson HBOC Inc. | 8,004,139 | ||||||||||||
Health Care Technology – 1.7% | ||||||||||||||
22,011 | AthenaHealth Inc., (2), (3) | 2,938,689 | ||||||||||||
135,469 | Cerner Corporation, (2), (3) | 7,590,328 | ||||||||||||
Total Health Care Technology | 10,529,017 | |||||||||||||
Hotels, Restaurants & Leisure – 3.2% | ||||||||||||||
122,681 | Las Vegas Sands | 8,614,660 | ||||||||||||
137,955 | Starbucks Corporation | 11,181,253 | ||||||||||||
Total Hotels, Restaurants & Leisure | 19,795,913 | |||||||||||||
Household Durables – 1.3% | ||||||||||||||
147,176 | Jarden Corporation, (3) | 8,147,663 | ||||||||||||
Industrial Conglomerates – 1.4% | ||||||||||||||
120,549 | Danaher Corporation | 8,690,377 | ||||||||||||
Internet & Catalog Retail – 5.2% | ||||||||||||||
35,114 | Amazon.com, Inc., (3) | 12,782,549 | ||||||||||||
11,464 | NetFlix.com Inc., (3) | 3,696,911 | ||||||||||||
10,927 | priceline.com Incorporated, (3) | 11,515,200 | ||||||||||||
52,195 | TripAdvisor Inc., (2), (3) | 4,317,048 | ||||||||||||
Total Internet & Catalog Retail | 32,311,708 | |||||||||||||
Internet Software & Services – 8.2% | ||||||||||||||
169,140 | Facebook Inc., Class A, (3) | 8,500,976 | ||||||||||||
25,759 | Google Inc., Class A, (3) | 26,546,710 | ||||||||||||
32,215 | LinkedIn Corporation, Class A, (3) | 7,205,529 | ||||||||||||
254,646 | Pandora Media, Inc., (2), (3) | 6,399,254 | ||||||||||||
37,779 | Yelp Inc., (3) | 2,559,527 | ||||||||||||
Total Internet Software & Services | 51,211,996 |
Nuveen Investments | 29 |
Portfolio of Investments October 31, 2013
Nuveen Large Cap Growth Opportunities Fund (continued)
Shares | Description (1) | Value | ||||||||||||
IT Services – 6.0% | ||||||||||||||
30,579 | Alliance Data Systems Corporation, (2), (3) | $ | 7,249,058 | |||||||||||
21,199 | MasterCard, Inc., Class A | 15,201,803 | ||||||||||||
76,284 | Visa Inc., Class A, (2) | 15,002,774 | ||||||||||||
Total IT Services | 37,453,635 | |||||||||||||
Leisure Equipment & Products – 0.9% | ||||||||||||||
45,207 | Polaris Industries Inc., (2) | 5,919,857 | ||||||||||||
Life Sciences Tools & Services – 0.8% | ||||||||||||||
20,943 | Mettler-Toledo International Inc., (2), (3) | 5,182,555 | ||||||||||||
Machinery – 3.2% | ||||||||||||||
69,128 | Cummins Inc. | 8,780,639 | ||||||||||||
87,202 | Graco Inc., (2) | 6,737,227 | ||||||||||||
72,946 | Wabtec Corporation | 4,755,350 | ||||||||||||
Total Machinery | 20,273,216 | |||||||||||||
Media – 6.7% | ||||||||||||||
119,480 | CBS Corporation, Class B | 7,066,047 | ||||||||||||
86,737 | Discovery Communications Inc., Class A, (2), (3) | 7,712,654 | ||||||||||||
89,704 | Liberty Global PLC, Class A, (3) | 7,030,102 | ||||||||||||
1,369,863 | Sirius XM Radio Inc., (2) | 5,164,384 | ||||||||||||
122,307 | The Walt Disney Company, (2) | 8,389,037 | ||||||||||||
191,726 | Twenty-First Century Fox Inc., Class A, (2) | 6,534,022 | ||||||||||||
Total Media | 41,896,246 | |||||||||||||
Multiline Retail – 1.2% | ||||||||||||||
125,606 | Dollar Tree Stores Inc., (2), (3) | 7,335,390 | ||||||||||||
Oil, Gas & Consumable Fuels – 2.3% | ||||||||||||||
166,391 | Cabot Oil & Gas Corporation | 5,876,930 | ||||||||||||
40,728 | Pioneer Natural Resources Co. | 8,340,280 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 14,217,210 | |||||||||||||
Pharmaceuticals – 2.9% | ||||||||||||||
234,654 | Bristol-Myers Squibb Company | 12,324,028 | ||||||||||||
183,212 | Pfizer Inc. | 5,620,944 | ||||||||||||
Total Pharmaceuticals | 17,944,972 | |||||||||||||
Real Estate Investment Trust – 1.4% | ||||||||||||||
108,012 | American Tower Corporation (REIT) | 8,570,752 | ||||||||||||
Road & Rail – 2.3% | ||||||||||||||
81,383 | J.B. Hunt Transport Services Inc. | 6,106,167 | ||||||||||||
69,888 | Kansas City Southern Industries, (2) | 8,492,790 | ||||||||||||
Total Road & Rail | 14,598,957 |
30 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Semiconductors & Equipment – 1.0% | ||||||||||||||
136,894 | ARM Holdings PLC, Sponsored ADR, (2) | $ | 6,460,028 | |||||||||||
Software – 7.1% | ||||||||||||||
132,740 | Adobe Systems Incorporated, (3) | 7,194,508 | ||||||||||||
41,174 | CommVault Systems, Inc., (3) | 3,214,866 | ||||||||||||
181,641 | Microsoft Corporation | 6,421,009 | ||||||||||||
42,819 | NetSuite Inc., (2), (3) | 4,319,581 | ||||||||||||
134,548 | Salesforce.com, Inc., (2), (3) | 7,179,481 | ||||||||||||
96,957 | ServiceNow Inc., (2), (3) | 5,294,822 | ||||||||||||
90,638 | Splunk Inc., (3) | 5,683,909 | ||||||||||||
65,333 | Workday Inc., Class A, (3) | 4,891,482 | ||||||||||||
Total Software | 44,199,658 | |||||||||||||
Specialty Retail – 6.4% | ||||||||||||||
13,057 | AutoZone, Inc., (2), (3) | 5,675,747 | ||||||||||||
126,280 | CarMax, Inc., (2), (3) | 5,933,897 | ||||||||||||
65,302 | Home Depot, Inc. | 5,086,373 | ||||||||||||
195,552 | Lowe’s Companies, Inc. | 9,734,579 | ||||||||||||
104,551 | TJX Companies, Inc. | 6,355,655 | ||||||||||||
97,506 | Tractor Supply Company | 6,957,053 | ||||||||||||
Total Specialty Retail | 39,743,304 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||||||||
59,472 | Lululemon Athletica Inc., (2), (3) | 4,106,542 | ||||||||||||
31,134 | Ralph Lauren Corporation, Class A | 5,157,036 | ||||||||||||
Total Textiles, Apparel & Luxury Goods | 9,263,578 | |||||||||||||
Tobacco – 2.1% | ||||||||||||||
147,156 | Philip Morris International | 13,114,543 | ||||||||||||
Trading Companies & Distributors – 1.5% | ||||||||||||||
34,870 | W.W. Grainger, Inc., (2) | 9,378,984 | ||||||||||||
Total Common Stocks (cost $424,704,982) | 625,605,106 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 29.0% | ||||||||||||||
Money Market Funds – 29.0% | ||||||||||||||
181,651,530 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 181,651,530 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $181,651,530) | 181,651,530 | |||||||||||||
Total Long-Term Investments (cost $606,356,512) | 807,256,636 |
Nuveen Investments | 31 |
Portfolio of Investments October 31, 2013
Nuveen Large Cap Growth Opportunities Fund (continued)
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||||||||
Money Market Funds – 0.5% | ||||||||||||||
3,377,345 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 3,377,345 | |||||||||||
Total Short-Term Investments (cost $3,377,345) | 3,377,345 | |||||||||||||
Total Investments (cost $609,733,857) – 129.6% | 810,633,981 | |||||||||||||
Other Assets Less Liabilities – (29.6)% | (185,052,777 | ) | ||||||||||||
Net Assets – 100% | $ | 625,581,204 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $177,218,350. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
ADR | American Depositary Receipt. |
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
32 | Nuveen Investments |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Growth Opportunities Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 123.3% | ||||||||||||||
COMMON STOCKS – 97.7% | ||||||||||||||
Airlines – 2.8% | ||||||||||||||
738,733 | Delta Air Lines, Inc., (2) | $ | 19,487,777 | |||||||||||
294,579 | Ryanair Holdings PLC, Sponsored ADR | 14,790,812 | ||||||||||||
Total Airlines | 34,278,589 | |||||||||||||
Auto Components – 2.0% | ||||||||||||||
232,780 | BorgWarner Inc., (2) | 24,006,601 | ||||||||||||
Automobiles – 1.4% | ||||||||||||||
269,356 | Harley-Davidson, Inc. | 17,249,558 | ||||||||||||
Beverages – 0.7% | ||||||||||||||
159,647 | Monster Beverage Corporation, (3) | 9,136,598 | ||||||||||||
Biotechnology – 2.8% | ||||||||||||||
164,732 | Alexion Pharmaceuticals Inc., (3) | 20,253,799 | ||||||||||||
48,413 | Regeneron Pharmaceuticals, Inc., (2), (3) | 13,923,579 | ||||||||||||
Total Biotechnology | 34,177,378 | |||||||||||||
Building Products – 0.8% | ||||||||||||||
227,064 | Fortune Brands Home & Security, Inc. | 9,781,917 | ||||||||||||
Capital Markets – 4.7% | ||||||||||||||
88,996 | Affiliated Managers Group Inc., (3) | 17,571,370 | ||||||||||||
247,476 | Evercore Partners Inc., Class A | 12,490,114 | ||||||||||||
324,601 | LPL Financial Holdings Inc. | 13,224,245 | ||||||||||||
514,370 | TD Ameritrade Holding Corporation, (2) | 14,021,726 | ||||||||||||
Total Capital Markets | 57,307,455 | |||||||||||||
Chemicals – 4.6% | ||||||||||||||
171,418 | FMC Corporation | 12,472,374 | ||||||||||||
136,846 | PPG Industries, Inc. | 24,985,343 | ||||||||||||
204,104 | W.R. Grace & Co., (3) | 18,708,173 | ||||||||||||
Total Chemicals | 56,165,890 | |||||||||||||
Construction & Engineering – 1.2% | ||||||||||||||
199,091 | Chicago Bridge & Iron Company N.V. | 14,750,652 | ||||||||||||
Consumer Finance – 0.7% | ||||||||||||||
177,833 | Discover Financial Services | 9,225,976 | ||||||||||||
Diversified Financial Services – 2.4% | ||||||||||||||
311,497 | CBOE Holdings Inc. | 15,107,604 |
Nuveen Investments | 33 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Growth Opportunities Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Diversified Financial Services (continued) | ||||||||||||||
199,828 | Moody’s Corporation, (2) | $ | 14,119,846 | |||||||||||
Total Diversified Financial Services | 29,227,450 | |||||||||||||
Electrical Equipment – 3.9% | ||||||||||||||
276,465 | Ametek Inc. | 13,223,321 | ||||||||||||
189,687 | Rockwell Automation, Inc., (2) | 20,943,342 | ||||||||||||
106,885 | Roper Industries Inc., (2) | 13,554,087 | ||||||||||||
Total Electrical Equipment | 47,720,750 | |||||||||||||
Electronic Equipment & Instruments – 2.4% | ||||||||||||||
248,168 | Amphenol Corporation, Class A | 19,925,409 | ||||||||||||
112,935 | Littelfuse, Inc., (2) | 9,602,863 | ||||||||||||
Total Electronic Equipment & Instruments | 29,528,272 | |||||||||||||
Energy Equipment & Services – 2.1% | ||||||||||||||
55,776 | Core Laboratories NV, (2) | 10,442,383 | ||||||||||||
182,659 | Oceaneering International Inc. | 15,686,755 | ||||||||||||
Total Energy Equipment & Services | 26,129,138 | |||||||||||||
Food Products – 1.0% | ||||||||||||||
187,757 | Green Mountain Coffee Roasters Inc., (2), (3) | 11,793,017 | ||||||||||||
Health Care Providers & Services – 3.4% | ||||||||||||||
123,818 | Henry Schein Inc., (3) | 13,920,858 | ||||||||||||
287,991 | Team Health Holdings Inc., (3) | 12,510,329 | ||||||||||||
190,781 | Universal Health Services, Inc., Class B | 15,369,317 | ||||||||||||
Total Health Care Providers & Services | 41,800,504 | |||||||||||||
Health Care Technology – 2.0% | ||||||||||||||
35,299 | AthenaHealth Inc., (2), (3) | 4,712,769 | ||||||||||||
352,783 | Cerner Corporation, (2), (3) | 19,766,431 | ||||||||||||
Total Health Care Technology | 24,479,200 | |||||||||||||
Hotels, Restaurants & Leisure – 2.1% | ||||||||||||||
155,618 | Wynn Resorts Ltd, (2) | 25,871,492 | ||||||||||||
Household Durables – 2.5% | ||||||||||||||
329,135 | Jarden Corporation, (3) | 18,220,914 | ||||||||||||
98,273 | Mohawk Industries Inc., (3) | 13,013,311 | ||||||||||||
Total Household Durables | 31,234,225 | |||||||||||||
Internet & Catalog Retail – 3.2% | ||||||||||||||
39,611 | Netflix, Inc., (3) | 12,773,755 | ||||||||||||
12,603 | priceline.com Incorporated, (3) | 13,281,419 | ||||||||||||
163,918 | TripAdvisor Inc., (2), (3) | 13,557,658 | ||||||||||||
Total Internet & Catalog Retail | 39,612,832 |
34 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Internet Software & Services – 3.8% | ||||||||||||||
127,483 | Cornerstone OnDemand, Inc., (3) | $ | 6,038,870 | |||||||||||
75,227 | Criteo SA, Sponsored ADR, (3) | 2,656,265 | ||||||||||||
87,243 | LinkedIn Corporation, Class A, (3) | 19,513,642 | ||||||||||||
493,272 | Pandora Media, Inc., (2), (3) | 12,395,925 | ||||||||||||
85,595 | Yelp Inc., (3) | 5,799,061 | ||||||||||||
Total Internet Software & Services | 46,403,763 | |||||||||||||
IT Services – 2.6% | ||||||||||||||
63,893 | Alliance Data Systems Corporation, (2), (3) | 15,146,475 | ||||||||||||
240,240 | Gartner Inc., (3) | 14,162,148 | ||||||||||||
24,045 | WEX Inc., (3) | 2,244,601 | ||||||||||||
Total IT Services | 31,553,224 | |||||||||||||
Leisure Equipment & Products – 1.5% | ||||||||||||||
142,435 | Polaris Industries Inc., (2) | 18,651,863 | ||||||||||||
Machinery – 5.0% | ||||||||||||||
212,802 | Flowserve Corporation, (2) | 14,783,355 | ||||||||||||
151,085 | Graco Inc., (2) | 11,672,827 | ||||||||||||
208,970 | WABCO Holdings Inc., (3) | 17,904,550 | ||||||||||||
266,242 | Wabtec Corporation | 17,356,316 | ||||||||||||
Total Machinery | 61,717,048 | |||||||||||||
Marine – 0.7% | ||||||||||||||
97,031 | Kirby Corporation, (3) | 8,586,273 | ||||||||||||
Media – 1.4% | ||||||||||||||
4,488,992 | Sirius XM Radio Inc., (2) | 16,923,500 | ||||||||||||
Multiline Retail – 1.7% | ||||||||||||||
364,009 | Dollar Tree Stores Inc., (2), (3) | 21,258,126 | ||||||||||||
Oil, Gas & Consumable Fuels – 4.9% | ||||||||||||||
463,285 | Cabot Oil & Gas Corporation | 16,363,226 | ||||||||||||
343,349 | Cobalt International Energy, Inc., (3) | 7,969,130 | ||||||||||||
107,990 | Concho Resources Inc., (2), (3) | 11,944,774 | ||||||||||||
251,307 | Diamondback Energy Inc., (3) | 12,980,007 | ||||||||||||
184,764 | Gulfport Energy Corporation, (2), (3) | 10,843,799 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 60,100,936 | |||||||||||||
Personal Products – 1.4% | ||||||||||||||
142,576 | Nu Skin Enterprises, Inc., Class A | 16,671,412 | ||||||||||||
Pharmaceuticals – 3.5% | ||||||||||||||
156,124 | Jazz Pharmaceuticals, Inc., (2), (3) | 14,166,692 | ||||||||||||
483,645 | Mylan Inc., (2), (3) | 18,315,636 | ||||||||||||
147,250 | Salix Pharmaceuticals Limited, (3) | 10,565,187 | ||||||||||||
Total Pharmaceuticals | 43,047,515 |
Nuveen Investments | 35 |
Portfolio of Investments October 31, 2013
Nuveen Mid Cap Growth Opportunities Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Road & Rail – 2.6% | ||||||||||||||
178,754 | J.B. Hunt Transport Services Inc. | $ | 13,411,913 | |||||||||||
148,761 | Kansas City Southern Industries, (2) | 18,077,437 | ||||||||||||
Total Road & Rail | 31,489,350 | |||||||||||||
Semiconductors & Equipment – 1.3% | ||||||||||||||
349,780 | ARM Holdings PLC, Sponsored ADR, (2) | 16,506,118 | ||||||||||||
Software – 7.8% | ||||||||||||||
120,454 | Ansys Inc., (3) | 10,533,702 | ||||||||||||
308,254 | Aspen Technology Inc., (3) | 11,784,550 | ||||||||||||
134,789 | CommVault Systems, Inc., (3) | 10,524,325 | ||||||||||||
87,227 | NetSuite Inc., (2), (3) | 8,799,460 | ||||||||||||
269,072 | ServiceNow Inc., (2), (3) | 14,694,022 | ||||||||||||
262,171 | Splunk Inc., (3) | 16,440,743 | ||||||||||||
80,984 | Tableau Software Inc., Class A, (3) | 4,977,277 | ||||||||||||
67,230 | Ultimate Software Group, Inc., (3) | 10,385,690 | ||||||||||||
110,722 | Workday Inc., Class A, (3) | 8,289,756 | ||||||||||||
Total Software | 96,429,525 | |||||||||||||
Specialty Retail – 8.1% | ||||||||||||||
44,990 | AutoZone, Inc., (2), (3) | 19,556,703 | ||||||||||||
302,707 | CarMax, Inc., (3) | 14,224,202 | ||||||||||||
301,013 | GNC Holdings Inc., Class A | 17,705,585 | ||||||||||||
204,727 | PetSmart Inc., (2) | 14,895,936 | ||||||||||||
266,770 | Ross Stores, Inc. | 20,634,659 | ||||||||||||
167,848 | Tractor Supply Company | 11,975,955 | ||||||||||||
Total Specialty Retail | 98,993,040 | |||||||||||||
Textiles, Apparel & Luxury Goods – 2.8% | ||||||||||||||
103,808 | Fossil Group Inc., (3) | 13,177,388 | ||||||||||||
159,535 | Michael Kors Holdings Limited, (3) | 12,276,218 | ||||||||||||
57,687 | Ralph Lauren Corporation, Class A | 9,555,275 | ||||||||||||
Total Textiles, Apparel & Luxury Goods | 35,008,881 | |||||||||||||
Thrifts & Mortgage Finance – 1.0% | ||||||||||||||
208,438 | Ocwen Financial Corporation, (3) | 11,720,469 | ||||||||||||
Trading Companies & Distributors – 0.9% | ||||||||||||||
41,993 | W.W. Grainger, Inc. | 11,294,857 | ||||||||||||
Total Common Stocks (cost $908,092,649) | 1,199,833,394 |
36 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 25.6% | ||||||||||||||
Money Market Funds – 25.6% | ||||||||||||||
315,031,451 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 315,031,451 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $315,031,451) | 315,031,451 | |||||||||||||
Total Long-Term Investments (cost $1,223,124,100) | 1,514,864,845 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 2.1% | ||||||||||||||
Money Market Funds – 2.1% | ||||||||||||||
26,102,023 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 26,102,023 | |||||||||||
Total Short-Term Investments (cost $26,102,023) | 26,102,023 | |||||||||||||
Total Investments (cost $1,249,226,123) – 125.4% | 1,540,966,868 | |||||||||||||
Other Assets Less Liabilities – (25.4)% | (311,837,442 | ) | ||||||||||||
Net Assets – 100% | $ | 1,229,129,426 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $307,240,928. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
Nuveen Investments | 37 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Growth Opportunities Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 120.7% | ||||||||||||||
COMMON STOCKS – 94.9% | ||||||||||||||
Aerospace & Defense – 3.0% | ||||||||||||||
34,625 | Hexcel Corporation, (2) | $ | 1,464,984 | |||||||||||
59,597 | Orbital Sciences Corporation, (2), (3) | 1,374,903 | ||||||||||||
Total Aerospace & Defense | 2,839,887 | |||||||||||||
Auto Components – 1.4% | ||||||||||||||
24,614 | Tenneco Inc., (2) | 1,306,265 | ||||||||||||
Biotechnology – 7.0% | ||||||||||||||
36,865 | Alkermes Inc., (2) | 1,297,279 | ||||||||||||
11,882 | Alnylam Pharmaceuticals, Inc., (2) | 684,522 | ||||||||||||
17,472 | Celldex Therapeutics, Inc., (2), (3) | 400,284 | ||||||||||||
34,311 | Cepheid, Inc., (2), (3) | 1,397,144 | ||||||||||||
14,236 | Cubist Pharmaceuticals Inc., (2) | 882,632 | ||||||||||||
27,053 | ISIS Pharmaceuticals, Inc., (2), (3) | 900,053 | ||||||||||||
39,519 | Myriad Genetics Inc., (2), (3) | 963,473 | ||||||||||||
Total Biotechnology | 6,525,387 | |||||||||||||
Capital Markets – 2.8% | ||||||||||||||
23,276 | Evercore Partners Inc., Class A, (3) | 1,174,740 | ||||||||||||
35,589 | Stifel Financial Corporation, (2), (3) | 1,457,370 | ||||||||||||
Total Capital Markets | 2,632,110 | |||||||||||||
Chemicals – 2.7% | ||||||||||||||
56,566 | Chemtura Corporation, (2) | 1,385,867 | ||||||||||||
23,519 | H.B. Fuller Company | 1,125,855 | ||||||||||||
Total Chemicals | 2,511,722 | |||||||||||||
Commercial Banks – 3.2% | ||||||||||||||
57,110 | Cathay General Bancorp. | 1,406,619 | ||||||||||||
48,349 | East West Bancorp Inc., (3) | 1,628,878 | ||||||||||||
Total Commercial Banks | 3,035,497 | |||||||||||||
Commercial Services & Supplies – 1.1% | ||||||||||||||
50,552 | Interface, Inc. | 1,023,678 | ||||||||||||
Communications Equipment – 4.0% | ||||||||||||||
74,810 | Aruba Networks, Inc., (2), (3) | 1,403,436 | ||||||||||||
47,102 | Ixia, (2) | 667,906 | ||||||||||||
38,107 | Plantronics Inc. | 1,636,315 | ||||||||||||
Total Communications Equipment | 3,707,657 |
38 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Construction & Engineering – 2.7% | ||||||||||||||
38,833 | MasTec Inc., (2), (3) | $ | 1,241,491 | |||||||||||
46,856 | MYR Group Inc., (2) | 1,239,341 | ||||||||||||
Total Construction & Engineering | 2,480,832 | |||||||||||||
Distributors – 1.0% | ||||||||||||||
17,500 | Pool Corporation | 951,650 | ||||||||||||
Diversified Consumer Services – 2.8% | ||||||||||||||
22,245 | Capella Education Company, (2) | 1,355,165 | ||||||||||||
25,738 | Grand Canyon Education Inc., (2) | 1,216,635 | ||||||||||||
Total Diversified Consumer Services | 2,571,800 | |||||||||||||
Electrical Equipment – 2.5% | ||||||||||||||
10,177 | Acuity Brands Inc. | 1,022,890 | ||||||||||||
57,279 | Thermon Group Holdings Inc., (2) | 1,346,629 | ||||||||||||
Total Electrical Equipment | 2,369,519 | |||||||||||||
Electronic Equipment & Instruments – 2.5% | ||||||||||||||
18,750 | Coherent, Inc. | 1,241,063 | ||||||||||||
36,910 | National Instruments Corporation, (3) | 1,072,236 | ||||||||||||
Total Electronic Equipment & Instruments | 2,313,299 | |||||||||||||
Energy Equipment & Services – 0.8% | ||||||||||||||
5,979 | Dril-Quip Inc., (2) | 702,054 | ||||||||||||
Food Products – 2.6% | ||||||||||||||
18,962 | Annie’s Incorporated, (2), (3) | 895,955 | ||||||||||||
21,194 | Treehouse Foods Inc., (2) | 1,552,672 | ||||||||||||
Total Food Products | 2,448,627 | |||||||||||||
Health Care Equipment & Supplies – 6.3% | ||||||||||||||
19,128 | Align Technology, Inc., (2), (3) | 1,091,444 | ||||||||||||
66,305 | Endologix, Inc., (2) | 1,198,131 | ||||||||||||
27,429 | Haemonetics Corporation, (2) | 1,112,520 | ||||||||||||
114,884 | Nxstage Medical, Inc., (2) | 1,524,511 | ||||||||||||
39,232 | Quidel Corporation, (2), (3) | 969,030 | ||||||||||||
Total Health Care Equipment & Supplies | 5,895,636 | |||||||||||||
Health Care Providers & Services – 4.0% | ||||||||||||||
38,187 | HealthSouth Corporation | 1,340,746 | ||||||||||||
80,824 | Healthways Inc., (2), (3) | 778,335 | ||||||||||||
36,960 | Team Health Holdings Inc., (2) | 1,605,542 | ||||||||||||
Total Health Care Providers & Services | 3,724,623 | |||||||||||||
Health Care Technology – 2.3% | ||||||||||||||
7,464 | AthenaHealth Inc., (2), (3) | 996,519 | ||||||||||||
54,840 | HMS Holdings Corporation, (2), (3) | 1,158,769 | ||||||||||||
Total Health Care Technology | 2,155,288 |
Nuveen Investments | 39 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Growth Opportunities Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Hotels, Restaurants & Leisure – 2.5% | ||||||||||||||
54,671 | Del Frisco’s Restaurant Group Inc., (2) | $ | 989,545 | |||||||||||
17,215 | Red Robin Gourmet Burgers, Inc., (2) | 1,311,439 | ||||||||||||
Total Hotels, Restaurants & Leisure | 2,300,984 | |||||||||||||
Household Durables – 2.8% | ||||||||||||||
41,688 | La-Z-Boy Inc. | 962,159 | ||||||||||||
20,370 | Meritage Homes Corporation, (2) | 924,594 | ||||||||||||
44,143 | Tri Pointe Homes, Inc., (2), (3) | 702,757 | ||||||||||||
Total Household Durables | 2,589,510 | |||||||||||||
Internet Software & Services – 5.5% | ||||||||||||||
70,897 | Carbonite Inc., (2) | 938,676 | ||||||||||||
44,054 | Constant Contact Inc., (2) | 1,141,439 | ||||||||||||
28,048 | DealerTrack Technologies Inc., (2), (3) | 1,046,190 | ||||||||||||
55,584 | Perficient, Inc., (2) | 1,005,515 | ||||||||||||
36,651 | Web.com Group, Inc., (2), (3) | 987,745 | ||||||||||||
Total Internet Software & Services | 5,119,565 | |||||||||||||
IT Services – 1.4% | ||||||||||||||
31,871 | Heartland Payment Systems Inc., (3) | 1,289,182 | ||||||||||||
Leisure Equipment & Products – 2.9% | ||||||||||||||
25,830 | Arctic Cat, Inc. | 1,353,492 | ||||||||||||
30,780 | Brunswick Corporation, (3) | 1,389,101 | ||||||||||||
Total Leisure Equipment & Products | 2,742,593 | |||||||||||||
Machinery – 2.8% | ||||||||||||||
30,106 | Actuant Corporation, Class A | 1,130,781 | ||||||||||||
48,472 | Altra Industrial Motion, Inc. | 1,472,095 | ||||||||||||
Total Machinery | 2,602,876 | |||||||||||||
Oil, Gas & Consumable Fuels – 4.1% | ||||||||||||||
22,353 | Diamondback Energy, (2) | 1,154,533 | ||||||||||||
55,503 | Energy XXI Limited Bermuda, (3) | 1,612,917 | ||||||||||||
20,635 | Oasis Petroleum Inc., (2), (3) | 1,098,814 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 3,866,264 | |||||||||||||
Pharmaceuticals – 0.6% | ||||||||||||||
54,140 | Nektar Therapeutics, (2) | 514,871 | ||||||||||||
Professional Services – 1.1% | ||||||||||||||
42,740 | TrueBlue Inc., (2), (3) | 1,055,678 | ||||||||||||
Road & Rail – 2.7% | ||||||||||||||
29,118 | Con-Way, Inc. | 1,199,662 | ||||||||||||
61,284 | Swift Transportation Company, Class A, (2), (3) | 1,335,378 | ||||||||||||
Total Road & Rail | 2,535,040 |
40 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Semiconductors & Equipment – 4.8% | ||||||||||||||
78,371 | MaxLinear, Inc., Class A, (2) | $ | 678,693 | |||||||||||
46,824 | MKS Instruments Inc. | 1,387,863 | ||||||||||||
37,966 | Semtech Corporation, (2), (3) | 1,181,122 | ||||||||||||
70,425 | Teradyne, Inc., (2) | 1,231,733 | ||||||||||||
Total Semiconductors & Equipment | 4,479,411 | |||||||||||||
Software – 5.6% | ||||||||||||||
33,926 | Aspen Technology Inc., (2) | 1,296,991 | ||||||||||||
13,504 | CommVault Systems, Inc., (2) | 1,054,392 | ||||||||||||
32,010 | Micros Systems, Inc., (2), (3) | 1,736,543 | ||||||||||||
7,365 | Ultimate Software Group, Inc., (2) | 1,137,745 | ||||||||||||
591,081 | VideoPropulsion Inc., (2), (4) | — | ||||||||||||
Total Software | 5,225,671 | |||||||||||||
Specialty Retail – 4.3% | ||||||||||||||
37,712 | Ann Inc., (2), (3) | 1,333,496 | ||||||||||||
73,020 | Ascena Retail Group Inc., (2) | 1,445,066 | ||||||||||||
18,682 | Genesco Inc., (2) | 1,272,431 | ||||||||||||
Total Specialty Retail | 4,050,993 | |||||||||||||
Textiles, Apparel & Luxury Goods – 1.1% | ||||||||||||||
18,531 | G-III Apparel Group, Ltd., (2), (3) | 1,051,078 | ||||||||||||
Total Common Stocks (cost $69,318,144) | 88,619,247 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 25.8% | ||||||||||||||
Money Market Funds – 25.8% | ||||||||||||||
24,123,493 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (5), (6) | $ | 24,123,493 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $24,123,493) | 24,123,493 | |||||||||||||
Total Long-Term Investments (cost $93,441,637) | 112,742,740 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 3.9% | ||||||||||||||
Money Market Funds – 3.9% | ||||||||||||||
3,639,267 | First American Treasury Obligations Fund, Class Z, 0.000%, (5) | $ | 3,639,267 | |||||||||||
Total Short-Term Investments (cost $3,639,267) | 3,639,267 | |||||||||||||
Total Investments (cost $97,080,904) – 124.6% | 116,382,007 | |||||||||||||
Other Assets Less Liabilities – (24.6)% | (22,985,874 | ) | ||||||||||||
Net Assets – 100% | $ | 93,396,133 |
Nuveen Investments | 41 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Growth Opportunities Fund (continued)
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 portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $22,995,937. |
(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, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(5) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(6) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
See accompanying notes to financial statements.
42 | Nuveen Investments |
Statement of
Assets and Liabilities October 31, 2013
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $424,704,982, $908,092,649 and $69,318,144, respectively) | $ | 625,605,106 | $ | 1,199,833,394 | $ | 88,619,247 | ||||||
Short-term investments, at value (cost approximates value) | 3,377,345 | 26,102,023 | 3,639,267 | |||||||||
Investments purchased with collateral from securities lending (cost approximates value) | 181,651,530 | 315,031,451 | 24,123,493 | |||||||||
Receivable for: | ||||||||||||
Dividends | 256,178 | 151,059 | 8,575 | |||||||||
Due from broker | 15,447 | 36,487 | 2,929 | |||||||||
Investments sold | — | 33,999,264 | 792,948 | |||||||||
Shares sold | 472,015 | 3,885,052 | 1,182,053 | |||||||||
Other assets | 11,810 | 23,297 | 2,869 | |||||||||
Total assets | 811,389,431 | 1,579,062,027 | 118,371,381 | |||||||||
Liabilities | ||||||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 181,651,530 | 315,031,451 | 24,123,493 | |||||||||
Investments purchased | 2,473,640 | 32,113,780 | 642,091 | |||||||||
Shares redeemed | 961,625 | 1,281,879 | 79,408 | |||||||||
Accrued expenses: | ||||||||||||
Directors fees | 15,287 | 30,323 | 729 | |||||||||
Management fees | 429,771 | 893,955 | 84,005 | |||||||||
12b-1 distribution and service fees | 52,437 | 114,585 | 11,945 | |||||||||
Other | 223,937 | 466,628 | 33,577 | |||||||||
Total liabilities | 185,808,227 | 349,932,601 | 24,975,248 | |||||||||
Net assets | $ | 625,581,204 | $ | 1,229,129,426 | $ | 93,396,133 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 165,790,680 | $ | 355,085,644 | $ | 40,964,758 | ||||||
Shares outstanding | 3,832,647 | 6,947,160 | 1,509,786 | |||||||||
Net asset value per share | $ | 43.26 | $ | 51.11 | $ | 27.13 | ||||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 45.90 | $ | 54.23 | $ | 28.79 | ||||||
Class B Shares | ||||||||||||
Net assets | $ | 1,060,854 | $ | 1,905,734 | N/A | |||||||
Shares outstanding | 27,524 | 44,461 | N/A | |||||||||
Net asset value and offering price per share | $ | 38.54 | $ | 42.86 | N/A | |||||||
Class C Shares | ||||||||||||
Net assets | $ | 14,963,359 | $ | 22,180,784 | $ | 2,349,972 | ||||||
Shares outstanding | 379,552 | 489,754 | 97,697 | |||||||||
Net asset value and offering price per share | $ | 39.42 | $ | 45.29 | $ | 24.05 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 11,320,311 | $ | 47,167,638 | $ | 1,940,788 | ||||||
Shares outstanding | 267,518 | 949,995 | 73,383 | |||||||||
Net asset value and offering price per share | $ | 42.32 | $ | 49.65 | $ | 26.45 | ||||||
Class R6 Shares(1) | ||||||||||||
Net assets | $ | 28,965,906 | $ | 25,874,229 | N/A | |||||||
Shares outstanding | 639,842 | 462,287 | N/A | |||||||||
Net asset value and offering price per share | $ | 45.27 | $ | 55.97 | N/A | |||||||
Class I Shares | ||||||||||||
Net assets | $ | 403,480,094 | $ | 776,915,397 | $ | 48,140,615 | ||||||
Shares outstanding | 8,918,698 | 13,891,219 | 1,621,799 | |||||||||
Net asset value and offering price per share | $ | 45.24 | $ | 55.93 | $ | 29.68 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 331,811,137 | $ | 731,726,251 | $ | 58,977,278 | ||||||
Undistributed (Over-distribution of) net investment income | (23,998 | ) | (36,993 | ) | (10,690 | ) | ||||||
Accumulated net realized gain (loss) | 92,893,941 | 205,699,423 | 15,128,442 | |||||||||
Net unrealized appreciation (depreciation) | 200,900,124 | 291,740,745 | 19,301,103 | |||||||||
Net assets | $ | 625,581,204 | $ | 1,229,129,426 | $ | 93,396,133 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
N/A – Small Cap Growth Opportunities does not offer Class B Shares or Class R6 Shares. Class B Shares of Small Cap Growth Opportunities converted to Class A Shares at the close of business on October 28, 2013, and are no longer available through an exchange from other Nuveen mutual funds.
(1) – Class R6 shares were established and commenced operations on February 28, 2013.
See accompanying notes to financial statements.
Nuveen Investments | 43 |
Statement of
Operations Year Ended October 31, 2013
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income (net of foreign tax withheld of $648, $19,452 and $—, respectively) | $ | 6,385,531 | $ | 10,095,249 | $ | 295,363 | ||||||
Securities lending income, net | 154,614 | 537,610 | 53,079 | |||||||||
Total investment income | 6,540,145 | 10,632,859 | 348,442 | |||||||||
Expenses | ||||||||||||
Management fees | 4,846,695 | 10,019,318 | 884,995 | |||||||||
12b-1 service fees – Class A | 367,382 | 819,356 | 94,363 | |||||||||
12b-1 distribution and service fees – Class B(1) | 12,576 | 22,108 | 5,684 | |||||||||
12b-1 distribution and service fees – Class C | 130,843 | 194,442 | 18,602 | |||||||||
12b-1 distribution and service fees – Class R3 | 49,966 | 209,160 | 9,560 | |||||||||
Shareholder servicing agent fees and expenses | 581,478 | 1,564,984 | 122,251 | |||||||||
Custodian fees and expenses | 121,560 | 195,616 | 26,518 | |||||||||
Directors fees and expenses | 15,114 | 29,704 | 2,429 | |||||||||
Professional fees | 49,762 | 85,056 | 28,450 | |||||||||
Shareholder reporting expenses | 78,142 | 106,558 | 21,390 | |||||||||
Federal and state registration fees | 91,113 | 95,215 | 62,941 | |||||||||
Other expenses | 9,039 | 18,377 | 732 | |||||||||
Total expenses before fee waiver/expense reimbursement | 6,353,670 | 13,359,894 | 1,277,915 | |||||||||
Fee waiver/expense reimbursement | — | (41,020 | ) | (72,985 | ) | |||||||
Net expenses | 6,353,670 | 13,318,874 | 1,204,930 | |||||||||
Net investment income (loss) | 186,475 | (2,686,015 | ) | (856,488 | ) | |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from investments | 94,718,412 | 212,160,627 | 17,137,320 | |||||||||
Change in net unrealized appreciation (depreciation) of investments | 53,500,002 | 98,520,305 | 13,068,234 | |||||||||
Net realized and unrealized gain (loss) | 148,218,414 | 310,680,932 | 30,205,554 | |||||||||
Net increase (decrease) in net assets from operations | $ | 148,404,889 | $ | 307,994,917 | $ | 29,349,066 |
(1) – Class B Shares of Small Cap Growth Opportunities converted to Class A Shares at the close of business on October 28, 2013, and are no longer available through an exchange from other Nuveen mutual funds.
See accompanying notes to financial statements.
44 | Nuveen Investments |
Statement of
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | Year Ended 10/31/13 | Year Ended 10/31/12 | Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | 186,475 | $ | (1,093,505 | ) | $ | (2,686,015 | ) | $ | (2,677,860 | ) | $ | (856,488 | ) | $ | (847,550 | ) | |||||||||||
Net realized gain (loss) from investments and foreign currency | 94,718,412 | 8,688,927 | 212,160,627 | 76,780,307 | 17,137,320 | 8,329,187 | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | 53,500,002 | 34,772,397 | 98,520,305 | (1,595,420 | ) | 13,068,234 | (1,326,405 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets from operations | 148,404,889 | 42,367,819 | 307,994,917 | 72,507,027 | 29,349,066 | 6,155,232 | ||||||||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||||||||||
From net investment income: | ||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||||||
Class B(1) | — | — | — | — | — | — | ||||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||||||||||||
Class R6(2) | — | — | — | — | N/A | N/A | ||||||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||||||||||
Class A | (1,591,399 | ) | (3,267,944 | ) | (22,356,020 | ) | (10,990,297 | ) | (2,910,523 | ) | (522,866 | ) | ||||||||||||||||
Class B(1) | (18,638 | ) | (86,687 | ) | (215,259 | ) | (172,338 | ) | (56,611 | ) | (21,854 | ) | ||||||||||||||||
Class C | (155,108 | ) | (329,271 | ) | (1,457,568 | ) | (618,790 | ) | (141,702 | ) | (24,581 | ) | ||||||||||||||||
Class R3 | (117,432 | ) | (146,968 | ) | (2,936,652 | ) | (1,376,941 | ) | (179,503 | ) | (34,697 | ) | ||||||||||||||||
Class R6(2) | — | — | — | — | N/A | N/A | ||||||||||||||||||||||
Class I | (4,695,017 | ) | (14,243,083 | ) | (50,385,296 | ) | (25,461,450 | ) | (3,641,578 | ) | (807,347 | ) | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (6,577,594 | ) | (18,073,953 | ) | (77,350,795 | ) | (38,619,816 | ) | (6,929,917 | ) | (1,411,345 | ) | ||||||||||||||||
Fund Share Transactions | ||||||||||||||||||||||||||||
Proceeds from sale of shares | 114,942,764 | 199,910,231 | 168,827,689 | 270,597,132 | 14,883,118 | 12,033,060 | ||||||||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 4,260,866 | 10,225,671 | 63,480,998 | 30,318,778 | 4,581,429 | 833,300 | ||||||||||||||||||||||
119,203,630 | 210,135,902 | 232,308,687 | 300,915,910 | 19,464,547 | 12,866,360 | |||||||||||||||||||||||
Cost of shares redeemed | (210,714,464 | ) | (193,332,899 | ) | (344,129,810 | ) | (295,747,368 | ) | (36,554,233 | ) | (34,960,030 | ) | ||||||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (91,510,834 | ) | 16,803,003 | (111,821,123 | ) | 5,168,542 | (17,089,686 | ) | (22,093,670 | ) | ||||||||||||||||||
Net increase (decrease) in net assets | 50,316,461 | 41,096,869 | 118,822,999 | 39,055,753 | 5,329,463 | (17,349,783 | ) | |||||||||||||||||||||
Net assets at the beginning of period | 575,264,743 | 534,167,874 | 1,110,306,427 | 1,071,250,674 | 88,066,670 | 105,416,453 | ||||||||||||||||||||||
Net assets at the end of period | $ | 625,581,204 | $ | 575,264,743 | $ | 1,229,129,426 | $ | 1,110,306,427 | $ | 93,396,133 | $ | 88,066,670 | ||||||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (23,998 | ) | $ | (1,108,090 | ) | $ | (36,993 | ) | $ | (2,317,581 | ) | $ | (10,690 | ) | $ | (10,690 | ) |
N/A – Small Cap Growth Opportunities does not offer Class R6 shares.
(1) – Class B Shares of Small Cap Growth Opportunities converted to Class A Shares at the close of business on October 28, 2013, and are no longer available through an exchange from other Nuveen mutual funds.
(2) – Class R6 Shares were established and commenced operations on February 28, 2013.
See accompanying notes to financial statements.
Nuveen Investments | 45 |
Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
LARGE CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 34.09 | $ | (.05 | ) | $ | 9.63 | $ | 9.58 | $ | — | $ | (.41 | ) | $ | (.41 | ) | $ | 43.26 | |||||||||||||||
2012 | 32.92 | (.13 | ) | 2.46 | 2.33 | — | (1.16 | ) | (1.16 | ) | 34.09 | |||||||||||||||||||||||
2011 | 30.24 | (.15 | ) | 2.83 | 2.68 | — | — | — | 32.92 | |||||||||||||||||||||||||
2010 | 24.23 | (.09 | ) | 6.15 | 6.06 | (.05 | ) | — | (.05 | ) | 30.24 | |||||||||||||||||||||||
2009 | 21.52 | .05 | 2.68 | 2.73 | (.02 | ) | — | (.02 | ) | 24.23 | ||||||||||||||||||||||||
Class B (3/99) |
| |||||||||||||||||||||||||||||||||
2013 | 30.65 | (.28 | ) | 8.58 | 8.30 | — | (.41 | ) | (.41 | ) | 38.54 | |||||||||||||||||||||||
2012 | 29.90 | (.33 | ) | 2.24 | 1.91 | — | (1.16 | ) | (1.16 | ) | 30.65 | |||||||||||||||||||||||
2011 | 27.68 | (.36 | ) | 2.58 | 2.22 | — | — | — | 29.90 | |||||||||||||||||||||||||
2010 | 22.31 | (.26 | ) | 5.63 | 5.37 | — | — | — | 27.68 | |||||||||||||||||||||||||
2009 | 19.93 | (.09 | ) | 2.47 | 2.38 | — | — | — | 22.31 | |||||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 31.34 | (.31 | ) | 8.80 | 8.49 | — | (.41 | ) | (.41 | ) | 39.42 | |||||||||||||||||||||||
2012 | 30.57 | (.35 | ) | 2.28 | 1.93 | — | (1.16 | ) | (1.16 | ) | 31.34 | |||||||||||||||||||||||
2011 | 28.30 | (.37 | ) | 2.64 | 2.27 | — | — | — | 30.57 | |||||||||||||||||||||||||
2010 | 22.81 | (.27 | ) | 5.76 | 5.49 | — | — | — | 28.30 | |||||||||||||||||||||||||
2009 | 20.38 | (.10 | ) | 2.53 | 2.43 | — | — | — | 22.81 | |||||||||||||||||||||||||
Class R3 (11/00) |
| |||||||||||||||||||||||||||||||||
2013 | 33.44 | (.14 | ) | 9.43 | 9.29 | — | (.41 | ) | (.41 | ) | 42.32 | |||||||||||||||||||||||
2012 | 32.39 | (.22 | ) | 2.43 | 2.21 | — | (1.16 | ) | (1.16 | ) | 33.44 | |||||||||||||||||||||||
2011 | 29.83 | (.23 | ) | 2.79 | 2.56 | — | — | — | 32.39 | |||||||||||||||||||||||||
2010 | 23.92 | (.16 | ) | 6.07 | 5.91 | — | — | — | 29.83 | |||||||||||||||||||||||||
2009 | 21.26 | (.01 | ) | 2.67 | 2.66 | — | — | — | 23.92 | |||||||||||||||||||||||||
Class R6 (2/13) |
| |||||||||||||||||||||||||||||||||
2013(d) | 37.47 | (.02 | ) | 7.82 | 7.80 | — | — | — | 45.27 | |||||||||||||||||||||||||
Class I (12/92) |
| |||||||||||||||||||||||||||||||||
2013 | 35.55 | .06 | 10.04 | 10.10 | — | (.41 | ) | (.41 | ) | 45.24 | ||||||||||||||||||||||||
2012 | 34.19 | (.04 | ) | 2.56 | 2.52 | — | (1.16 | ) | (1.16 | ) | 35.55 | |||||||||||||||||||||||
2011 | 31.33 | (.06 | ) | 2.92 | 2.86 | — | — | — | 34.19 | |||||||||||||||||||||||||
2010 | 25.09 | (.03 | ) | 6.38 | 6.35 | (.11 | ) | — | (.11 | ) | 31.33 | |||||||||||||||||||||||
2009 | 22.31 | .11 | 2.77 | 2.88 | (.10 | ) | — | (.10 | ) | 25.09 |
46 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||
28.39 | % | $ | 165,791 | 1.24 | % | (.14 | )% | 1.24 | % | (.14 | )% | 72 | % | |||||||||||||||||
7.66 | 134,788 | 1.26 | (.42 | ) | 1.23 | (.39 | ) | 73 | ||||||||||||||||||||||
8.86 | 84,875 | 1.20 | (.46 | ) | 1.20 | (.46 | ) | 88 | ||||||||||||||||||||||
25.03 | 66,409 | 1.21 | (.36 | ) | 1.20 | (.35 | ) | 106 | ||||||||||||||||||||||
12.73 | 56,963 | 1.22 | .24 | 1.22 | .24 | 112 | ||||||||||||||||||||||||
27.38 | 1,061 | 1.99 | (.84 | ) | 1.99 | (.84 | ) | 72 | ||||||||||||||||||||||
7.00 | 1,481 | 2.00 | (1.10 | ) | 1.98 | (1.07 | ) | 73 | ||||||||||||||||||||||
8.02 | 2,411 | 1.95 | (1.19 | ) | 1.95 | (1.19 | ) | 88 | ||||||||||||||||||||||
24.07 | 3,473 | 1.96 | (1.07 | ) | 1.95 | (1.06 | ) | 106 | ||||||||||||||||||||||
11.94 | 4,749 | 1.97 | (.48 | ) | 1.97 | (.48 | ) | 112 | ||||||||||||||||||||||
27.43 | 14,963 | 1.99 | (.89 | ) | 1.99 | (.89 | ) | 72 | ||||||||||||||||||||||
6.88 | 11,193 | 2.01 | (1.16 | ) | 1.98 | (1.14 | ) | 73 | ||||||||||||||||||||||
8.02 | 7,832 | 1.95 | (1.21 | ) | 1.95 | (1.21 | ) | 88 | ||||||||||||||||||||||
24.07 | 4,220 | 1.96 | (1.09 | ) | 1.95 | (1.08 | ) | 106 | ||||||||||||||||||||||
11.92 | 4,509 | 1.97 | (.51 | ) | 1.97 | (.51 | ) | 112 | ||||||||||||||||||||||
28.07 | 11,320 | 1.49 | (.39 | ) | 1.49 | (.39 | ) | 72 | ||||||||||||||||||||||
7.40 | 9,658 | 1.51 | (.70 | ) | 1.48 | (.67 | ) | 73 | ||||||||||||||||||||||
8.58 | 3,431 | 1.45 | (.72 | ) | 1.45 | (.72 | ) | 88 | ||||||||||||||||||||||
24.71 | 742 | 1.46 | (.60 | ) | 1.45 | (.59 | ) | 106 | ||||||||||||||||||||||
12.51 | 667 | 1.47 | (.05 | ) | 1.47 | (.05 | ) | 112 | ||||||||||||||||||||||
20.82 | 28,966 | .91 | * | (.06 | )* | .91 | * | (.06 | )* | 72 | ||||||||||||||||||||
28.69 | 403,480 | .99 | .14 | .99 | .14 | 72 | ||||||||||||||||||||||||
7.94 | 418,144 | 1.01 | (.13 | ) | .98 | (.11 | ) | 73 | ||||||||||||||||||||||
9.13 | 435,619 | .95 | (.17 | ) | .95 | (.17 | ) | 88 | ||||||||||||||||||||||
25.34 | 546,605 | .96 | (.11 | ) | .95 | (.10 | ) | 106 | ||||||||||||||||||||||
13.02 | 482,222 | .97 | .48 | .97 | .48 | 112 |
(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 February 28, 2013 (commencement of operations) through October 31, 2013. |
(e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 47 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
MID CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 42.38 | $ | (.17 | ) | $ | 12.05 | $ | 11.88 | $ | — | $ | (3.15 | ) | $ | (3.15 | ) | $ | 51.11 | |||||||||||||||
2012 | 41.36 | (.16 | ) | 2.77 | 2.61 | — | (1.59 | ) | (1.59 | ) | 42.38 | |||||||||||||||||||||||
2011 | 37.26 | (.22 | ) | 4.32 | 4.10 | — | — | — | 41.36 | |||||||||||||||||||||||||
2010 | 28.83 | (.18 | ) | 8.61 | 8.43 | — | — | — | 37.26 | |||||||||||||||||||||||||
2009 | 23.88 | (.08 | ) | 5.03 | 4.95 | — | — | — | 28.83 | |||||||||||||||||||||||||
Class B (3/99) |
| |||||||||||||||||||||||||||||||||
2013 | 36.30 | (.42 | ) | 10.13 | 9.71 | — | (3.15 | ) | (3.15 | ) | 42.86 | |||||||||||||||||||||||
2012 | 35.93 | (.42 | ) | 2.38 | 1.96 | — | (1.59 | ) | (1.59 | ) | 36.30 | |||||||||||||||||||||||
2011 | 32.62 | (.46 | ) | 3.77 | 3.31 | — | — | — | 35.93 | |||||||||||||||||||||||||
2010 | 25.43 | (.37 | ) | 7.56 | 7.19 | — | — | — | 32.62 | |||||||||||||||||||||||||
2009 | 21.22 | (.23 | ) | 4.44 | 4.21 | — | — | — | 25.43 | |||||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 38.17 | (.45 | ) | 10.72 | 10.27 | — | (3.15 | ) | (3.15 | ) | 45.29 | |||||||||||||||||||||||
2012 | 37.70 | (.43 | ) | 2.49 | 2.06 | — | (1.59 | ) | (1.59 | ) | 38.17 | |||||||||||||||||||||||
2011 | 34.21 | (.49 | ) | 3.98 | 3.49 | — | — | — | 37.70 | |||||||||||||||||||||||||
2010 | 26.67 | (.39 | ) | 7.93 | 7.54 | — | — | — | 34.21 | |||||||||||||||||||||||||
2009 | 22.26 | (.24 | ) | 4.65 | 4.41 | — | — | — | 26.67 | |||||||||||||||||||||||||
Class R3 (12/00) |
| |||||||||||||||||||||||||||||||||
2013 | 41.35 | (.27 | ) | 11.72 | 11.45 | — | (3.15 | ) | (3.15 | ) | 49.65 | |||||||||||||||||||||||
2012 | 40.50 | (.27 | ) | 2.71 | 2.44 | — | (1.59 | ) | (1.59 | ) | 41.35 | |||||||||||||||||||||||
2011 | 36.58 | (.31 | ) | 4.23 | 3.92 | — | — | — | 40.50 | |||||||||||||||||||||||||
2010 | 28.37 | (.26 | ) | 8.47 | 8.21 | — | — | — | 36.58 | |||||||||||||||||||||||||
2009 | 23.56 | (.14 | ) | 4.95 | 4.81 | — | — | — | 28.37 | |||||||||||||||||||||||||
Class R6 (2/13) |
| |||||||||||||||||||||||||||||||||
2013(d) | 46.61 | (.05 | ) | 9.41 | 9.36 | — | — | — | 55.97 | |||||||||||||||||||||||||
Class I (12/89) |
| |||||||||||||||||||||||||||||||||
2013 | 45.97 | (.06 | ) | 13.17 | 13.11 | — | (3.15 | ) | (3.15 | ) | 55.93 | |||||||||||||||||||||||
2012 | 44.62 | (.06 | ) | 3.00 | 2.94 | — | (1.59 | ) | (1.59 | ) | 45.97 | |||||||||||||||||||||||
2011 | 40.09 | (.10 | ) | 4.63 | 4.53 | — | — | — | 44.62 | |||||||||||||||||||||||||
2010 | 30.94 | (.11 | ) | 9.26 | 9.15 | — | — | — | 40.09 | |||||||||||||||||||||||||
2009 | 25.57 | (.02 | ) | 5.39 | 5.37 | — | — | — | 30.94 |
48 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||
30.27 | % | $ | 355,086 | 1.30 | % | (.38 | )% | 1.29 | % | (.38 | )% | 108 | % | |||||||||||||||||
6.88 | 306,507 | 1.30 | (.42 | ) | 1.27 | (.39 | ) | 113 | ||||||||||||||||||||||
11.00 | 289,038 | 1.26 | (.53 | ) | 1.26 | (.53 | ) | 114 | ||||||||||||||||||||||
29.24 | 275,040 | 1.23 | (.57 | ) | 1.23 | (.57 | ) | 114 | ||||||||||||||||||||||
20.73 | 231,743 | 1.23 | (.33 | ) | 1.23 | (.33 | ) | 123 | ||||||||||||||||||||||
29.29 | 1,906 | 2.06 | (1.11 | ) | 2.05 | (1.11 | ) | 108 | ||||||||||||||||||||||
6.08 | 2,576 | 2.05 | (1.18 | ) | 2.02 | (1.15 | ) | 113 | ||||||||||||||||||||||
10.15 | 4,127 | 2.01 | (1.26 | ) | 2.01 | (1.26 | ) | 114 | ||||||||||||||||||||||
28.27 | 5,490 | 1.98 | (1.31 | ) | 1.98 | (1.31 | ) | 114 | ||||||||||||||||||||||
19.84 | 6,762 | 1.98 | (1.06 | ) | 1.98 | (1.06 | ) | 123 | ||||||||||||||||||||||
29.33 | 22,181 | 2.05 | (1.14 | ) | 2.04 | (1.13 | ) | 108 | ||||||||||||||||||||||
6.06 | 17,874 | 2.05 | (1.16 | ) | 2.02 | (1.13 | ) | 113 | ||||||||||||||||||||||
10.20 | 14,314 | 2.01 | (1.28 | ) | 2.01 | (1.28 | ) | 114 | ||||||||||||||||||||||
28.27 | 13,564 | 1.98 | (1.32 | ) | 1.98 | (1.32 | ) | 114 | ||||||||||||||||||||||
19.81 | 12,894 | 1.98 | (1.07 | ) | 1.98 | (1.07 | ) | 123 | ||||||||||||||||||||||
29.97 | 47,168 | 1.55 | (.63 | ) | 1.54 | (.63 | ) | 108 | ||||||||||||||||||||||
6.59 | 38,869 | 1.55 | (.67 | ) | 1.52 | (.64 | ) | 113 | ||||||||||||||||||||||
10.72 | 34,929 | 1.51 | (.77 | ) | 1.51 | (.77 | ) | 114 | ||||||||||||||||||||||
28.94 | 33,772 | 1.48 | (.82 | ) | 1.48 | (.82 | ) | 114 | ||||||||||||||||||||||
20.42 | 26,822 | 1.48 | (.59 | ) | 1.48 | (.59 | ) | 123 | ||||||||||||||||||||||
20.12 | 25,874 | .92 | * | (.14 | )* | .92 | * | (.14 | )* | 108 | ||||||||||||||||||||
30.60 | 776,915 | 1.05 | (.13 | ) | 1.04 | (.12 | ) | 108 | ||||||||||||||||||||||
7.13 | 744,480 | 1.05 | (.17 | ) | 1.02 | (.14 | ) | 113 | ||||||||||||||||||||||
11.30 | 728,843 | 1.01 | (.21 | ) | 1.01 | (.21 | ) | 114 | ||||||||||||||||||||||
29.57 | 993,053 | .98 | (.31 | ) | .98 | (.31 | ) | 114 | ||||||||||||||||||||||
21.00 | 907,825 | .98 | (.09 | ) | .98 | (.09 | ) | 123 |
(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 February 28, 2013 (commencement of operations) through October 31, 2013. |
(e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 49 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
SMALL CAP GROWTH OPPORTUNITIES | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (8/95) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 21.25 | $ | (.26 | ) | $ | 7.93 | $ | 7.67 | $ | — | $ | (1.79 | ) | $ | (1.79 | ) | $ | 27.13 | |||||||||||||||
2012 | 20.41 | (.21 | ) | 1.35 | 1.14 | — | (.30 | ) | (.30 | ) | 21.25 | |||||||||||||||||||||||
2011 | 19.04 | (.24 | ) | 1.61 | 1.37 | — | — | — | 20.41 | |||||||||||||||||||||||||
2010 | 14.55 | (.18 | ) | 4.67 | 4.49 | — | — | — | 19.04 | |||||||||||||||||||||||||
2009 | 11.96 | (.11 | ) | 2.70 | 2.59 | — | — | — | 14.55 | |||||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 19.17 | (.38 | ) | 7.05 | 6.67 | — | (1.79 | ) | (1.79 | ) | 24.05 | |||||||||||||||||||||||
2012 | 18.58 | (.34 | ) | 1.23 | .89 | — | (.30 | ) | (.30 | ) | 19.17 | |||||||||||||||||||||||
2011 | 17.46 | (.36 | ) | 1.48 | 1.12 | — | — | — | 18.58 | |||||||||||||||||||||||||
2010 | 13.44 | (.28 | ) | 4.30 | 4.02 | — | — | — | 17.46 | |||||||||||||||||||||||||
2009 | 11.13 | (.19 | ) | 2.50 | 2.31 | — | — | — | 13.44 | |||||||||||||||||||||||||
Class R3 (12/00) |
| |||||||||||||||||||||||||||||||||
2013 | 20.81 | (.30 | ) | 7.73 | 7.43 | — | (1.79 | ) | (1.79 | ) | 26.45 | |||||||||||||||||||||||
2012 | 20.04 | (.26 | ) | 1.33 | 1.07 | — | (.30 | ) | (.30 | ) | 20.81 | |||||||||||||||||||||||
2011 | 18.74 | (.29 | ) | 1.59 | 1.30 | — | — | — | 20.04 | |||||||||||||||||||||||||
2010 | 14.36 | (.22 | ) | 4.60 | 4.38 | — | — | — | 18.74 | |||||||||||||||||||||||||
2009 | 11.83 | (.16 | ) | 2.69 | 2.53 | — | — | — | 14.36 | |||||||||||||||||||||||||
Class I (8/95) |
| |||||||||||||||||||||||||||||||||
2013 | 23.03 | (.21 | ) | 8.65 | 8.44 | — | (1.79 | ) | (1.79 | ) | 29.68 | |||||||||||||||||||||||
2012 | 22.04 | (.17 | ) | 1.46 | 1.29 | — | (.30 | ) | (.30 | ) | 23.03 | |||||||||||||||||||||||
2011 | 20.51 | (.19 | ) | 1.72 | 1.53 | — | — | — | 22.04 | |||||||||||||||||||||||||
2010 | 15.63 | (.15 | ) | 5.03 | 4.88 | — | — | — | 20.51 | |||||||||||||||||||||||||
2009 | 12.81 | (.09 | ) | 2.91 | 2.82 | — | — | — | 15.63 |
50 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
39.22 | % | $ | 40,965 | 1.55 | % | (1.17 | )% | 1.46 | % | (1.09 | )% | 119 | % | |||||||||||||||||
5.73 | 35,306 | 1.72 | (1.21 | ) | 1.47 | (.97 | ) | 118 | ||||||||||||||||||||||
7.20 | 36,188 | 1.54 | (1.19 | ) | 1.47 | (1.12 | ) | 118 | ||||||||||||||||||||||
30.86 | 39,501 | 1.68 | (1.26 | ) | 1.47 | (1.05 | ) | 142 | ||||||||||||||||||||||
21.66 | 30,202 | 1.79 | (1.21 | ) | 1.47 | (.89 | ) | 169 | ||||||||||||||||||||||
38.17 | 2,350 | 2.30 | (1.91 | ) | 2.22 | (1.83 | ) | 119 | ||||||||||||||||||||||
4.93 | 1,568 | 2.46 | (1.96 | ) | 2.22 | (1.72 | ) | 118 | ||||||||||||||||||||||
6.41 | 1,546 | 2.29 | (1.94 | ) | 2.22 | (1.87 | ) | 118 | ||||||||||||||||||||||
29.91 | 1,596 | 2.43 | (2.01 | ) | 2.22 | (1.80 | ) | 142 | ||||||||||||||||||||||
20.75 | 1,341 | 2.54 | (1.98 | ) | 2.22 | (1.66 | ) | 169 | ||||||||||||||||||||||
38.86 | 1,941 | 1.80 | (1.40 | ) | 1.72 | (1.32 | ) | 119 | ||||||||||||||||||||||
5.48 | 2,395 | 1.96 | (1.46 | ) | 1.72 | (1.22 | ) | 118 | ||||||||||||||||||||||
6.94 | 2,334 | 1.79 | (1.44 | ) | 1.72 | (1.37 | ) | 118 | ||||||||||||||||||||||
30.50 | 2,185 | 1.93 | (1.52 | ) | 1.72 | (1.31 | ) | 142 | ||||||||||||||||||||||
21.39 | 1,469 | 2.04 | (1.56 | ) | 1.72 | (1.24 | ) | 169 | ||||||||||||||||||||||
39.55 | 48,141 | 1.30 | (.90 | ) | 1.22 | (.82 | ) | 119 | ||||||||||||||||||||||
5.99 | 48,111 | 1.47 | (.96 | ) | 1.22 | (.72 | ) | 118 | ||||||||||||||||||||||
7.46 | 63,866 | 1.31 | (.94 | ) | 1.22 | (.84 | ) | 118 | ||||||||||||||||||||||
31.22 | 141,215 | 1.43 | (1.01 | ) | 1.22 | (.80 | ) | 142 | ||||||||||||||||||||||
22.01 | 103,423 | 1.54 | (.99 | ) | 1.22 | (.67 | ) | 169 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 51 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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 Large Cap Growth Opportunities Fund (“Large Cap Growth Opportunities”), Nuveen Mid Cap Growth Opportunities Fund (“Mid Cap Growth Opportunities”) and Nuveen Small Cap Growth Opportunities Fund (“Small Cap Growth Opportunities”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
Investment Adviser
On December 31, 2012, the Funds’ investment adviser converted from a Delaware corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisors, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
The Adviser is responsible for the Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Fund Information
Large Cap Growth Opportunities’ investment objective is long-term growth of capital. Under normal market conditions, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in common stocks of large-capitalization companies, defined as companies that have market capitalizations of $5 billion or greater at the time of purchase.
Mid Cap Growth Opportunities’ investment objective is 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 common stocks of mid-capitalization companies, defined as companies that have market capitalizations at the time of purchase within the market capitalization range of the companies in the Russell Midcap® Index immediately after its most recent reconstitution prior to such purchase. It is expected that reconstitution of the index will occur each year at the end of June. Immediately after the most recent reconstitution, the range was $699 million to $19.2 billion.
Small Cap Growth Opportunities’ investment objective is growth of capital. Under normal market conditions, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in common stocks of small-capitalization companies, defined as companies that have market capitalizations of less than $3 billion at the time of purchase.
Each Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, each 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 each Fund’s total assets may be invested in equity securities of emerging market issuers. Each Fund may utilize options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”). Each Fund may use these derivatives to manage market or business risk, enhance each 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 B Shares
Effective at the close of business on October 28, 2013, Class B Shares of Small Cap Growth Opportunities were converted to Class A Shares and are no longer available through an exchange from other Nuveen mutual funds.
Class R6 Shares
On February 28, 2013, Large Cap Growth Opportunities and Mid Cap Growth Opportunities began offering Class R6 Shares. In connection with this offering certain limited categories of investors of Class I Shares, as defined in the Funds’ prospectus, were exchanged to Class R6 Shares.
52 | Nuveen Investments |
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income 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 and net realized 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.
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. Large Cap Growth Opportunities and Mid Cap Growth Opportunities 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 upfront 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 agent 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.
Nuveen Investments | 53 |
Notes to Financial Statements (continued)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. 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. 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.
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). |
54 | Nuveen 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:
Large Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 625,605,106 | $ | — | $ | — | $ | 625,605,106 | ||||||||
Investments Purchased with Collateral from Securities Lending | 181,651,530 | — | — | 181,651,530 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 3,377,345 | — | — | 3,377,345 | ||||||||||||
Total | $ | 810,633,981 | $ | — | $ | — | $ | 810,633,981 | ||||||||
Mid Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 1,199,833,394 | $ | — | $ | — | $ | 1,199,833,394 | ||||||||
Investments Purchased with Collateral from Securities Lending | 315,031,451 | — | — | 315,031,451 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 26,102,023 | — | — | 26,102,023 | ||||||||||||
Total | $ | 1,540,966,868 | $ | — | $ | — | $ | 1,540,966,868 | ||||||||
Small Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 88,619,247 | $ | — | $ | — | ** | $ | 88,619,247 | |||||||
Investments Purchased with Collateral from Securities Lending | 24,123,493 | — | — | 24,123,493 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 3,639,267 | — | — | 3,639,267 | ||||||||||||
Total | $ | 116,382,007 | $ | — | $ | — | ** | $ | 116,382,007 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
** | Level 3 security has a market value of zero. Refer to the Fund’s Portfolio of Investments for security 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.
Nuveen Investments | 55 |
Notes to Financial Statements (continued)
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in 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 the Funds 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 and derivatives are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. Each Fund’s policy is to receive cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. The adequacy of the collateral is monitored on a daily basis. If the value of the securities on loan increases, such that the level of collateralization falls below 102%, additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
The Funds’ custodian serves as the securities lending agent for the Funds. Each Fund pays the custodian a fee based on the Fund’s proportional share of the custodian’s expense of operating its securities lending program. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities.
Income from securities lending, net of fees paid, is recognized on the Statement of Operations as “Securities lending income, net” Securities lending fees paid by each Fund during the fiscal year ended October 31, 2013, were as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Securities lending fees paid | $ | 12,371 | $ | 76,140 | $ | 7,885 |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. 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 fiscal year ended October 31, 2013.
56 | Nuveen Investments |
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares were as follows:
Large Cap Growth Opportunities | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 832,095 | $ | 31,005,131 | 1,977,056 | $ | 67,022,340 | ||||||||||
Class B – exchanges | 1,077 | 34,962 | 2,060 | 64,799 | ||||||||||||
Class C | 142,887 | 4,743,351 | 144,538 | 4,470,537 | ||||||||||||
Class R3 | 92,524 | 3,365,668 | 243,928 | 7,858,765 | ||||||||||||
Class R6(1) | 122,336 | 5,216,225 | — | — | ||||||||||||
Class R6(1) – exchanges of Class I Shares | 591,770 | 22,173,634 | — | — | ||||||||||||
Class I | 1,263,806 | 48,403,793 | 3,476,160 | 120,493,790 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 44,624 | 1,507,852 | 105,705 | 3,128,856 | ||||||||||||
Class B | 607 | 18,394 | 3,203 | 85,704 | ||||||||||||
Class C | 3,158 | 97,877 | 8,270 | 226,508 | ||||||||||||
Class R3 | 3,455 | 114,428 | 5,050 | 146,968 | ||||||||||||
Class R6(1) | — | — | — | — | ||||||||||||
Class I | 71,535 | 2,522,315 | 215,508 | 6,637,635 | ||||||||||||
3,169,874 | 119,203,630 | 6,181,478 | 210,135,902 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (997,597 | ) | (37,345,726 | ) | (707,801 | ) | (23,866,671 | ) | ||||||||
Class B | (22,472 | ) | (747,073 | ) | (37,567 | ) | (1,150,978 | ) | ||||||||
Class C | (123,684 | ) | (4,173,300 | ) | (51,770 | ) | (1,610,482 | ) | ||||||||
Class R3 | (117,251 | ) | (4,200,986 | ) | (66,117 | ) | (2,157,862 | ) | ||||||||
Class R6(1) | (74,264 | ) | (3,085,237 | ) | — | — | ||||||||||
Class I | (3,587,032 | ) | (138,988,508 | ) | (4,672,394 | ) | (164,546,906 | ) | ||||||||
Class I – exchange to Class R6 Shares | (591,770 | ) | (22,173,634 | ) | — | — | ||||||||||
(5,514,070 | ) | (210,714,464 | ) | (5,535,649 | ) | (193,332,899 | ) | |||||||||
Net increase (decrease) | (2,344,196 | ) | $ | (91,510,834 | ) | 645,829 | $ | 16,803,003 |
(1) | Class R6 shares were established and commenced operations on February 28, 2013. |
Nuveen Investments | 57 |
Notes to Financial Statements (continued)
Mid Cap Growth Opportunities | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 974,569 | $ | 43,573,697 | 1,876,175 | $ | 78,271,691 | ||||||||||
Class B – exchanges | 56 | 2,000 | 1,177 | 41,138 | ||||||||||||
Class C | 93,837 | 3,753,518 | 137,723 | 5,238,734 | ||||||||||||
Class R3 | 237,619 | 10,411,156 | 536,070 | 21,615,530 | ||||||||||||
Class R6(1) | 280,298 | 15,265,317 | — | — | ||||||||||||
Class R6(1) – exchanges of Class I Shares | 214,584 | 10,001,758 | — | — | ||||||||||||
Class I | 1,771,048 | 85,820,243 | 3,677,764 | 165,430,039 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | �� | |||||||||||||||
Class A | 560,975 | 22,119,255 | 293,603 | 10,810,446 | ||||||||||||
Class B | 6,290 | 209,390 | 5,239 | 166,355 | ||||||||||||
Class C | 35,529 | 1,249,541 | 16,012 | 534,474 | ||||||||||||
Class R3 | 76,412 | 2,933,461 | 38,238 | 1,376,941 | ||||||||||||
Class R6(1) | — | — | — | — | ||||||||||||
Class I | 858,554 | 36,969,351 | 437,404 | 17,430,562 | ||||||||||||
5,109,771 | 232,308,687 | 7,019,405 | 300,915,910 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,821,251 | ) | (81,706,324 | ) | (1,924,502 | ) | (80,454,417 | ) | ||||||||
Class B | (32,857 | ) | (1,226,137 | ) | (50,297 | ) | (1,825,565 | ) | ||||||||
Class C | (107,877 | ) | (4,259,516 | ) | (65,179 | ) | (2,450,815 | ) | ||||||||
Class R3 | (304,025 | ) | (13,132,273 | ) | (496,726 | ) | (20,010,287 | ) | ||||||||
Class R6(1) | (32,595 | ) | (1,652,857 | ) | — | — | ||||||||||
Class I | (4,719,456 | ) | (232,150,945 | ) | (4,255,206 | ) | (191,006,284 | ) | ||||||||
Class I – exchange to Class R6 Shares | (214,584 | ) | (10,001,758 | ) | — | — | ||||||||||
(7,232,675 | ) | (344,129,810 | ) | (6,791,910 | ) | (295,747,368 | ) | |||||||||
Net increase (decrease) | (2,122,904 | ) | $ | (111,821,123 | ) | 227,495 | $ | 5,168,542 | ||||||||
Small Cap Growth Opportunities | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 146,968 | $ | 3,499,661 | 181,562 | $ | 3,953,207 | ||||||||||
Class B(2) – exchanges | — | — | 271 | 4,858 | ||||||||||||
Class C | 31,386 | 664,912 | 10,821 | 213,237 | ||||||||||||
Class R3 | 31,619 | 702,677 | 40,793 | 861,003 | ||||||||||||
Class I | 378,613 | 10,015,868 | 301,530 | 7,000,755 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 139,900 | 2,770,011 | 25,561 | 492,295 | ||||||||||||
Class B(2) | 3,379 | 56,611 | 1,301 | 21,675 | ||||||||||||
Class C | 7,502 | 132,547 | 1,334 | 23,323 | ||||||||||||
Class R3 | 9,277 | 179,503 | 1,836 | 34,697 | ||||||||||||
Class I | 66,763 | 1,442,757 | 12,551 | 261,310 | ||||||||||||
815,407 | 19,464,547 | 577,560 | 12,866,360 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (438,406 | ) | (10,180,374 | ) | (318,800 | ) | (6,900,577 | ) | ||||||||
Class B(2) | (40,988 | ) | (883,640 | ) | (47,582 | ) | (893,732 | ) | ||||||||
Class C | (22,982 | ) | (464,777 | ) | (13,576 | ) | (259,174 | ) | ||||||||
Class R3 | (82,576 | ) | (1,806,471 | ) | (44,038 | ) | (923,620 | ) | ||||||||
Class I | (912,572 | ) | (23,218,971 | ) | (1,123,082 | ) | (25,982,927 | ) | ||||||||
(1,497,524 | ) | (36,554,233 | ) | (1,547,078 | ) | (34,960,030 | ) | |||||||||
Net increase (decrease) | (682,117 | ) | $ | (17,089,686 | ) | (969,518 | ) | $ | (22,093,670 | ) |
(1) | Class R6 Shares were established and commenced operations on February 28, 2013. |
(2) | Class B Shares of Small Cap Growth Opportunities converted to Class A Shares at the close of business on October 28, 2013, and are no longer available through an exchange from other Nuveen mutual funds. |
58 | Nuveen Investments |
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2013 and October 31, 2012, were as follows:
Fund | Year Ended | Year Ended 10/31/12 | ||||||
Large Cap Growth Opportunities | 10,037 | 50,367 | ||||||
Mid Cap Growth Opportunities | 7,906 | 36,727 | ||||||
Small Cap Growth Opportunities | 25,623 | 54,323 |
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending and short-term investments) during the fiscal year ended October 31, 2013, were as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Purchases | $ | 418,752,724 | $ | 1,241,229,258 | $ | 101,060,096 | ||||||
Sales | 516,560,284 | 1,442,702,003 | 127,000,099 |
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.
As of October 31, 2013, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Cost of investments | $ | 610,309,345 | $ | 1,250,864,538 | $ | 97,765,319 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 202,954,948 | $ | 298,663,154 | $ | 20,713,829 | ||||||
Depreciation | (2,630,312 | ) | (8,560,824 | ) | (2,097,141 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 200,324,636 | $ | 290,102,330 | $ | 18,616,688 |
Permanent differences, primarily due to net operating losses, tax equalization and investments in partnerships, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2013, the Funds’ tax year end, as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Capital paid-in | $ | 45,705 | $ | 5,283 | $ | 56,571 | ||||||
Undistributed (Over-distribution of) net investment income | 897,617 | 4,966,603 | 856,488 | |||||||||
Accumulated net realized gain (loss) | (943,322 | ) | (4,971,886 | ) | (913,059 | ) |
Nuveen Investments | 59 |
Notes to Financial Statements (continued)
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2013, the Funds’ tax year end, were as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Undistributed net ordinary income(1) | $ | 10,008,087 | $ | 15,419,469 | $ | 7,443,311 | ||||||
Undistributed net long-term capital gains | 83,461,343 | 191,918,368 | 8,369,546 |
(1) | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2013 and October 31, 2012, was designated for purposes of the dividends paid deduction as follows:
2013 | Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |||||||||
Distributions from net ordinary income(1) | $ | — | $ | — | $ | 1,929,944 | ||||||
Distributions from net long-term capital gains(2) | 6,577,594 | 77,350,795 | 4,999,973 |
2012 | Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |||||||||
Distributions from net ordinary income(1) | $ | — | $ | — | $ | — | ||||||
Distributions from net long-term capital gains | 18,073,953 | 38,619,816 | 1,411,345 |
(1) | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
(2) | The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2013. |
During the Funds’ tax year ended October 31, 2013, there were no capital losses generated.
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 | Large Cap Growth Opportunities Fund-Level Fee Rate | Mid Cap Growth Opportunities Fund-Level Fee Rate | Small Cap Growth Opportunities Fund-Level Fee Rate | |||||||||
For the first $125 million | .6500 | % | .7000 | % | .8000 | % | ||||||
For the next $125 million | .6375 | .6875 | .7875 | |||||||||
For the next $250 million | .6250 | .6750 | .7750 | |||||||||
For the next $500 million | .6125 | .6625 | .7625 | |||||||||
For the next $1 billion | .6000 | .6500 | .7500 | |||||||||
For net assets over $2 billion | .5750 | .6250 | .7250 |
60 | 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 certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by 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 October 31, 2013, the complex-level fee rate for each Fund was as follows: |
Fund | Complex-Level Fee Rate | |||
Large Cap Growth Opportunities | .1935 | % | ||
Mid Cap Growth Opportunities | .1935 | |||
Small Cap Growth Opportunities | .2000 |
The Adviser has contractually agreed to waive fees and/or reimburse other Fund expenses of Small Cap Growth Opportunities so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding any acquired fund fees and expenses, do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table:
Class A Shares | Class B Shares | Class C Shares | Class R3 Shares | Class I Shares | Expiration date | |||||||||||||||||||
Small Cap Growth Opportunities | 1.47 | % | 2.22% | 2.22% | 1.72% | 1.22% | February 28, 2014 |
The Adviser agreed to reimburse management fees across all share classes of Large Cap Growth Opportunities and Mid Cap Growth Opportunities through December 31, 2012, to the extent necessary to maintain Class I Share total annual operating expenses, not including any acquired fund fees and expenses, at the applicable percentage of daily net assets listed in the Maximum Expense Level row of the following table, provided that in no event will the Adviser be required to make any reimbursements that would result in an annualized net management fee of less than the applicable percentage of daily net assets listed in the Minimum Management Fee row of the following table.
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | |||||||
Maximum Expense Level | .98 | % | .99 | % | ||||
Minimum Management Fee | .80 | .84 |
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.
Nuveen Investments | 61 |
Notes to Financial Statements (continued)
During the fiscal year ended October 31, 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:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Sales charges collected (Unaudited) | $ | 78,557 | $ | 127,692 | $ | 29,626 | ||||||
Paid to financial intermediaries (Unaudited) | 70,258 | 111,812 | 25,914 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
Commission advances (Unaudited) | $ | 42,610 | $ | 27,338 | $ | 3,524 |
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 fiscal year ended October 31, 2013, the Distributor retained such 12b-1 fees as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
12b-1 fees retained (Unaudited) | $ | 53,745 | $ | 87,687 | $ | 16,990 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2013, as follows:
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||||||
CDSC retained (Unaudited) | $ | 7,181 | $ | 14,138 | $ | 212 |
8. New Accounting Pronouncements
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.
62 | Nuveen Investments |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 206 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 206 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 206 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 206 | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company; (2006-2013) retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 206 |
Nuveen Investments | 63 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Chairman of the Board of Trustees of Marian University (since 2010 as trustee, 2011 as Chairman); Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 206 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 206 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) and CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 206 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 206 | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 206 |
64 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Interested Board Members: | ||||||||
William Adams IV(2) 1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Senior Executive Vice President, Global Structured Products (since 2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | 135 | ||||
Thomas S. Schreier, Jr.(2) 1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | 135 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 206 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 206 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 206 | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (2010-2011), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Senior Vice President (since 2013), formerly, Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 206 |
Nuveen Investments | 65 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 206 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 206 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 206 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 206 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 206 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 206 | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 103 |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
66 | 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 “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (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 Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser 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 Adviser’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 Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’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 Adviser with questions and the Adviser 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 Adviser and the Sub-Adviser. 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 Adviser 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 Adviser 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 Adviser. 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 Adviser 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-adviser 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-Adviser’s investment teams in Minneapolis in September 2012, and its 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.
Nuveen Investments | 67 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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 Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’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 Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser 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-Adviser’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-Adviser 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 Adviser’s execution of its oversight responsibilities over the Sub-Adviser. 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 Adviser’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 Adviser 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 Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’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 Adviser’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 Adviser 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 Adviser, 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 Adviser 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 Adviser’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.
68 | Nuveen Investments |
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., generally 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. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
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 Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds 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 Adviser 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 Large Cap Growth Opportunities Fund (the “Large Cap Fund”) and the Nuveen Mid Cap Growth Opportunities Fund (the “Mid Cap Fund”) demonstrated generally favorable performance in comparison to peers. In this regard, they noted that the Mid Cap Fund performed in the second quartile over various periods and that although the Large Cap Fund performed in the third quartile for the one-year period, such Fund was in the first quartile over the three- and five-year periods. In addition, the Independent Board Members observed that the Nuveen Small Cap Growth Opportunities Fund lagged its peers somewhat in the shorter periods, but demonstrated more favorable performance in the longer periods. In this regard, they noted that although such Fund was in the third quartile and underperformed its benchmark for the one- and three-year periods, it was in the second quartile and outperformed its benchmark for the five-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 ratio 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
Nuveen Investments | 69 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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 Funds had net management fees and net expense ratios (including fee waivers and expense reimbursements) that were below or in line with their respective peer averages.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser 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 Adviser are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Adviser 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 Adviser’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
70 | Nuveen Investments |
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 Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’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.
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 Adviser, 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-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Dow Jones Industrial Average Index: A price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange. The 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 Large-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Growth 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 Mid-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Growth 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 Small-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Growth Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Market Capitalization: The market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
MSCI EAFE Index: The MSCI (Morgan Stanley Capital International) EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Emerging Markets Index: An unmanaged index considered representative of stocks of developing countries. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Japan Index: A capitalization-weighted index, adjusted for free float. The index is designed to reflect the sectoral diversity of the Japanese equity markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 1000® Growth Index: An index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
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Glossary of Terms Used in this Report (continued)
Russell 2000® Growth Index: An index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell Midcap® Growth Index: An index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC -0330 for room hours and operation. | ||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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. | ||||||||||||||
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The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program. |
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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.
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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 $215 billion as of September 30, 2013. | ||||||||||||||
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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
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
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Nuveen Small Cap Select Fund | EMGRX | ARSBX | FHMCX | ASEIX | ARSTX |
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Chairman’s Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, recent events such as the Federal Reserve decision to slow down its bond buying program beginning in January of 2014 and the federal budget compromise that would guide government spending into 2015 are both positives for the economy moving forward. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
December 23, 2013
4 | Nuveen Investments |
Nuveen Large Cap Select Fund
Nuveen Small Cap Select Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. David Chalupnik, CFA, and Tony Burger, CFA, are the portfolio managers for the Nuveen Large Cap Select Fund. David assumed portfolio management responsibilities in 2003 and Tony joined the management team for the Fund in 2004.
Effective August 26, 2013, Mark Traster, CFA, was named lead portfolio manager for the Nuveen Small Cap Select Fund and Gregory Ryan, CFA, was added as a co-portfolio manager. Mark originally joined the team managing the Fund in 2004 and was named co-manager in 2008. There have been no changes in the Fund’s investment objectives or policies.
On the following pages, the portfolio management teams for the Funds examine economic and equity market conditions, key investment strategies and the Funds’ performance for the twelve-month period ended October 31, 2013.
What factors affected the U.S. economy and the equity market during the twelve-month reporting period ended October 31, 2013?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued at a moderate pace. The Federal Reserve (Fed) maintained its efforts to improve the overall economic environment by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. The Fed also continued its monthly purchases of $40 billion of mortgage-backed securities and $45 billion of longer-term Treasury securities in an open-ended effort to bolster growth and promote progress toward the Fed’s mandates of maximum employment and price stability. At its June 2013 meeting, the Fed indicated that it believed downside risks to the economy had diminished since the autumn of 2012. Subsequent comments by Fed Chairman Ben Bernanke suggested that the Fed might begin to reduce, or taper, its asset purchase program later in 2013. However, in September 2013, the Fed surprised the market by announcing that it had decided to wait for more evidence that the progress it discerned in June was sustainable before it made any adjustments to the pace of the purchase program. At its October 2013 meeting, the central bank reiterated this decision and said that it expected to continue its “highly accommodative stance of monetary policy” for “a considerable time” after the purchase program ends and the economic recovery strengthens. Finally, in December of 2013, the Fed announced a decision to slow down its bond buying program beginning in January of 2014.
In the third quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.8%, up from 2.5% for the second quarter of 2013, continuing the pattern of positive economic growth for the tenth consecutive quarter. The Consumer Price Index (CPI) rose 1.0% year-over-year as of October 2013, while the core CPI (which excludes food and energy) increased 1.7% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. Improvements in the labor markets continued to be slow, and unemployment remained above the Federal Reserve’s target of 6.5%. As of October 2013, the national unemploy-
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Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Portfolio Managers’ Comments (continued)
ment rate was 7.3%, up from 7.2% in September 2013 but below the 7.9% reported in October 2012. The slight uptick in October’s number reflected the increase in federal employees furloughed due to the government shutdown that month. The housing market continued to deliver good news, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.3% for the twelve months ended September 2013 (most recent data available at the time this report was prepared), the largest twelve-month percentage gain for the index since February 2006.
Early in this reporting period, the outlook for the U.S. economy was clouded by uncertainty about global financial markets and the outcome of the “fiscal cliff.” The tax consequences of the fiscal cliff situation were averted through a last-minute deal that raised payroll taxes, but left in place a number of tax breaks, including tax exemptions on municipal bond interest. However, lawmakers failed to reach a resolution on $1.2 trillion in spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for fiscal 2014 continued to be debated. On October 1, 2013, the start date for fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 7, 2014. Subsequent to the close of this reporting period, Congress preliminarily passed a federal budget deal that would guide government spending into 2015 and defuse the chances of another shutdown if it wins final passage. In addition to the ongoing political debate over federal spending, Chairman Bernanke’s June 2013 remarks about tapering the Federal Reserve’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and about the potential impact on the economy and financial markets, leading to increased market volatility.
For much of the reporting period, low interest rates and a fairly benign macro environment caused U.S. investors to move out the risk spectrum, resulting in robust flows into U.S. equity funds. Leading U.S. stock market indexes, including the S&P 500® Index, the Dow Jones Industrial Average and the Russell 2000® Index, each hit all-time highs during the reporting period. The S&P 500® Index gained 27% during the reporting period. Sluggish global growth, muted global inflation and ongoing fiscal drag provided a backdrop for continued monetary policy actions outside the U.S. as well, which drove strong equity market advances globally. In Japan, newly elected Prime Minister Shinzo Abe articulated policies designed to reinvigorate Japan’s weak economy. Widespread optimism for his strategies led to a massive rally in the Japanese equity market, which was up 34% during this reporting period, according to MSCI Japan Index. Elsewhere, the European Central Bank signaled an extended period of low rates while the U.K.’s Bank of England pursued its most aggressive monetary policy to date. Returns for developed markets outside the U.S. were very strong, as evidenced by the MSCI EAFE Index’s advance of 26% for the reporting period. In emerging market countries, which are more dependent on global growth and commodity prices, stocks significantly lagged developed markets with a 6% return during this reporting period, according to the MSCI Emerging Market Index.
Nuveen Large Cap Select Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) outperformed the S&P 500® Index and the Lipper classification average during the twelve-month period.
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What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by investing primarily in the common stocks of companies that have market capitalizations of $5 billion or greater at the time of purchase. During the reporting period, we continued to utilize our deep, rigorous research approach to find and invest in stocks that we believed had strong and/or improving fundamentals, attractive valuations and a catalyst for future positive relative price performance. We also continued to shift the Fund’s portfolio to areas of the market that our research suggested were particularly attractive. Throughout most of this time frame, the Fund emphasized domestic and global cyclical sectors and stocks that appeared to have solid fundamentals and attractive valuations in the context of a slowly improving global economic backdrop. Stocks that we sold generally faced an expected or actual deterioration in their fundamental earnings outlook, the realization or removal of the expected catalyst or excessive valuation.
As the stock market continued its strong advance throughout the reporting period, the Fund outperformed both the S&P 500® Index and its Lipper peers due to favorable security selection and successful sector weights. The Fund’s outperformance was the result of widespread success in stock selection during the reporting period, particularly in the consumer discretionary, industrials, financials, consumer staples, energy and materials sectors. On a sector basis, the Fund also benefited from overweights in several of the more cyclical sectors that outperformed during the reporting period, which included the consumer discretionary, industrials and financials sectors. We maintained the Fund’s overweights to these cyclical areas due to a number of factors, which included improving U.S. economic prospects, Europe’s emergence from an 18-month recession and China’s stabilizing economic growth. In addition, underweight positions in the more bond-like and stable sectors of consumer staples, telecommunications services and utilities proved helpful. We believed stocks in the staples, telecom and utilities sectors were overvalued, particularly as many investors continued to chase yields in the latter two areas. These sectors underperformed as investors digested better global economic growth data and Fed comments about reduced monetary stimulus in the United States.
The consumer discretionary sector was the best performing area for the Fund on a relative basis as four of the Fund’s holdings outperformed. The Fund continued to benefit from its position in leading U.S. electronics retailer Best Buy Co. Inc., which is currently in a restructuring phase. The company’s turnaround story continued as it reported stronger-than-expected second quarter results and domestic sales increased slightly. Priceline.com Inc., a leading on-line travel agency, also performed well. The company reported strong quarterly results in terms of revenues, earnings and gross bookings, while margins were not as pressured as the market had anticipated. Also, boat and marine engine manufacturer Brunswick Corporation continued to produce strong results. We had sold this stock after the company experienced a drop in demand during last spring’s cold and wet conditions; however, we bought back its shares after seeing more attractive data points for the firm and industry. Brunswick subsequently realized a resurgence in boat orders during the late summer and fall of 2013. In addition, the Fund benefited from its position in diversified consumer product manufacturer Jarden Corporation. The company, which produces a broad array of items such as skis, camping equipment and small appliances, continued to generate significant free cash flow, which its management used to make acquisitions and buy back shares.
Strength in the industrials sector was driven by positions in Boeing Company, Emerson Electric Company and Eaton Corporation PLC. We continued to hold the Fund’s Boeing position throughout the issues with its lithium ion battery on the company’s flagship Dreamliner airplane. We believed the company would benefit from secular demand for commercial aircrafts as global growth improved. Boeing subsequently announced a strong first-quarter earnings. The company continues to generate significant free cash flow as its new battery design has been accepted and the Dreamliner is back in production. In addition, the Fund benefited from a position in electrical products conglomerate Emerson
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Portfolio Managers’ Comments (continued)
Electric, which we purchased at an attractive valuation. Emerson Electric has been rewarded as its strong management team executes well on its value-enhancing strategy, which includes divesting out of its non-core businesses. At the same time, the company is using its strong free cash flow to make acquisitions in its core business area. Eaton, a leading provider of electrical, hydraulic and mechanical power solutions, also performed well. The company completed its acquisition of competitor Cooper Industries PLC, which is proving favorable in terms of both revenue-generating and cost-saving synergies. Eaton also benefited from improving economic conditions in Europe as the company has heavy exposure to the region.
Within the financials sector, Bank of America Corp., which we originally bought at an attractive valuation, advanced on the heels of the company’s strong performance in 2012. The firm benefited from the settlement of several outstanding litigations, which has removed some of the uncertainty surrounding its stock price. In addition, Bank of America’s results were aided by the strong mortgage re-financing market and expectations that significant cost-cutting efforts would start positively impacting the company’s bottom line. Fund results were also enhanced by our ownership in multiple-line insurance and investment management company Lincoln National Corp. Its stock was also attractively valued when we purchased it, selling at below tangible book value. Lincoln National subsequently beat earnings expectations in the second quarter as the firm benefited from the strong equity market along with the recent rise in long-term interest rates. Offsetting some of the Fund’s strength in the financial sector, we owned a fairly large position in Capital One Financial Corporation, a diversified credit card and banking company that missed its fourth-quarter 2012 earnings estimates somewhat significantly. This was due to higher-than-expected integration expenses from recent acquisitions, higher increases in charge-offs and delinquencies from recently acquired credit card portfolios and increased marketing costs. The resulting decline in credit quality, which we haven’t seen for quite some time in a financial company, caused us to sell Capital One.
The Fund continued to experience strong results within the consumer staples sector from Tyson Foods Inc., a leading producer of protein food products. The company saw its stock continually revalued higher as retail meat prices remained robust and its largest input cost (grain) declined. These favorable trends led to higher margins and upward earnings revisions. We sold out of the Fund’s Tyson Foods position during the reporting period after posting solid gains in the stock.
Within the energy sector the Fund benefited from having no exposure to Exxon Mobil Corp., a large component of the S&P 500® Index. Exxon Mobil, which is considered to be the safest and most defensive name in its sector, could not keep up with the overall bull market or the strongly advancing energy sector. Additionally, underweight positions in two other defensive sectors, utilities and telecommunications services, also helped Fund performance. The Fund had virtually no exposure within the utilities sector during this reporting period, which proved beneficial as the increase in interest rates reduced the spread between utility dividend yields and the 10-year Treasury yield. In addition, stocks in the utilities and telecom sectors are trading near the high end of their five-year historical price-to-book value, making them appear less attractive from a valuation perspective, especially in the face of potentially higher long-term bond yields.
Overall results were positive in the materials sector, led by strong returns from LyondellBasell Industries, one of the world’s largest plastic, chemical and fuel producers. The company benefited from lower natural gas prices in the United States, which helped improve its margins, and its strong free cash flow generation, which it used to buy back stock. We ended up selling the Fund’s position in LyondellBasell after it performed well and reached our price target. However, one of the Fund’s few detractors during the reporting period was also found in the materials sector: fertilizer manufacturer CF Industries Holdings, Inc. This stock had previously performed very well for the Fund as the company benefited from the high usage of fertilizer during 2012’s drought conditions. During this fiscal year, CF Industries gave back
8 | Nuveen Investments |
some of its gains as the spring’s wet weather conditions led to less demand for fertilizer. This trend, combined with a tougher pricing environment and greater supply, caused us to sell out of the Fund’s position in CF Industries.
The Fund’s portfolio remains positioned for improving U.S. economic growth in 2014 via an overweight position in the consumer discretionary sector. We are positioned with an overweight to industrials in an attempt to benefit from better global economic growth as Europe continues to emerge from recession and China stabilizes. However, we will continue to closely monitor the risks facing the markets, specifically U.S. and global economic data, to ensure that this cyclical exposure is appropriate for the Fund’s portfolio. We remain optimistic that long-term interest rates in the U.S. will continue to rise modestly, which may put pressure on sectors that we still perceive as overvalued such as consumer staples, telecommunications services and utilities. We will continue to take into account these broader themes as we search for new ideas with attractive fundamentals, below average valuations and positive potential catalysts.
Nuveen Small Cap Select Fund
How did the Fund perform during the twelve-month reporting period ended October 31, 2013?
The tables in the Fund Performance and Expense Ratios section of this report provide Class A Share total returns for the Fund for the one-year, five-year and ten-year periods ended October 31, 2013. The Fund’s Class A Shares at net asset value (NAV) underperformed both the Russell 2000® Index and the Lipper classification average over the twelve-month period.
What strategies were used to manage the Fund during the reporting period? How did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations of less than $3 billion at the time of purchase. During this reporting period, we continued to execute on our strategy of investing in well run, small-cap companies that we believe offer good value in order to generate competitive returns for the Fund. We continued to tap into our firm’s strong fundamental research capabilities in order to find what we believe to be the best ideas within the small-cap universe. These companies exhibit strong cash flows and attractive valuations, plus have identifiable, near-term catalysts that could be realized over the next 12-24 months.
Small-cap stocks produced strong returns as the overall backdrop for the asset class remained favorable during the Fund’s reporting period. The best performing segments of the market continued to include those areas with the greatest exposure to the strengthening U.S. economy. Cyclical sectors within the small-cap market led the way, including industrials, technology and consumer discretionary, while the more defensive sectors tied to the domestic economy, such as consumer staples and health care, also performed very well. However, cyclical sectors with more commodity price sensitivity such as materials lagged due to concerns about China’s slowing economy. Also, the interest rate sensitive utilities sector produced the weakest results after the Fed announced a potential tapering of its monetary policy sooner than the market expected, which drove interest rates higher.
While the Fund produced attractive absolute returns, it underperformed the Russell 2000® Index and the Lipper peer average primarily due to stock selection during the reporting period. The main detractors for the Fund were found in the consumer discretionary and technology sectors. In consumer discretionary, Ascena Retail Group Inc., a specialty retailer of apparel for women and ‘tween girls’, was the most notable underperformer as it lagged the rest of the specialty retail group. The company, which operates well-known store brands such as Dressbarn, Maurices and Justice, bought out the parent of Lane Bryant in 2012. As Ascena Retail attempted to improve Lane Bryant’s margins to levels
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Portfolio Managers’ Comments (continued)
similar to its other stores, the turnaround story for this underperforming brand was taking longer than the market anticipated. In addition, specialty retailers in general suffered from overall weakness in the retail sector as consumers focused more on durable product purchases instead of apparel. We have continued to hold Ascena Retail as we believe its management team is one of the highest quality and most successful at company turnarounds in the industry. In the technology sector, almost all the Fund’s shortfall resulted from a position in Vocus Inc., an on-line, software-as-a-service (SaaS) marketing company. Shares of Vocus declined as its profitability dropped. After making a strategic acquisition in 2012, the company’s new product line continued to take longer than expected to gain traction. Although Vocus is in the attractive and growing SaaS segment, we sold the Fund’s position after the further weakening of company fundamentals.
In addition, Fund results were hampered by a poorly timed move into housing-related stocks in March. We added positions in two single-family home builders, Meritage Homes Corp. and TRI Pointe Homes Inc., after experiencing steadily improving housing data with the additional favorable backdrop of continued low interest rates. Subsequent to our purchases, the Fed began discussing a potential tapering of its quantitative easing program, causing a sudden spike in interest rates in the summer. The ensuing slowdown in the housing market caused both Meritage and TRI Pointe to sell off in meaningful ways. However, we continue to own both home builders as we believe the housing cycle is still in the early stages of its recovery.
Despite the shortfall versus the benchmarks, the Fund experienced a number of strong small-cap performers during the reporting period. Stock selection in the materials sector was a bright spot as our holdings benefited from increasing demand for their products and/or industry consolidation. The Fund’s top performer was U.S. Silica Holdings Inc., the leading producer and supplier of silica sand used by exploration and production companies in the energy space. U.S. Silica’s stock price marched steadily upward during the reporting period as the company benefited from strong pricing and improving volume trends. The Fund also benefited from ownership of containerboard and packaging firm Rock-Tenn Company, which continued to gain additional synergies from its Smurfit-Stone acquisition during the previous year. While we continue to own U.S. Silica in the Fund’s portfolio, we sold our position in Rock-Tenn as its valuation reached our target and its market capitalization post-acquisition has grown too large for this small-cap focused portfolio.
Strong stock selection in consumer staples was led by a position in Natural Grocers by Vitamin Cottage, Inc. This Colorado-based company, which operates a chain of stores that sell natural and organic groceries and dietary supplements in the western U.S., went public in the summer of 2012. Natural Grocers has consistently beat expectations for comparable-store sales, while continuing to open new locations and post strong earnings growth. Although we appreciate the secular growth theme surrounding the organic food retailing industry, we sold out of the Fund’s position in Natural Grocers due to valuation concerns.
Finally, in the health care sector, the Fund benefited from its position in Align Technology, Inc., a pioneer and leader in the invisible orthodontics market. Align Technology’s leading product, Invisalign, is a clear, removable orthodontic aligner used to straighten teeth. This company has benefited as it continues to drive sales deeper into the orthodontic space, including the teenage and overseas markets. We continue to own Align Technology in the Fund’s portfolio.
Mutual fund investing involves risk; principal loss is possible.
10 | Nuveen Investments |
Nuveen Large Cap Select Fund
Equity investments, such as those held by the Fund, are subject to market risk, derivatives risk, and common stock risk. Foreign investments involve additional risks including currency fluctuations, political and economic instability, and lack of liquidity. These risks are magnified in emerging markets.
Nuveen Small Cap Select Fund
Equity investments, such as those held by the Fund, are subject to market risk, derivatives risk, IPO risk, and common stock risk. Small-cap stocks are subject to greater volatility and liquidity risks. Foreign investments involve additional risks including currency fluctuations, political and economic instability, and lack of liquidity. These risks are magnified in emerging markets.
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Fund Performance and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown on the following four pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 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 waivers 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 Large Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 32.14% | 15.20% | 6.55% | |||||||||
Class A Shares at maximum Offering Price | 24.53% | 13.84% | 5.92% | |||||||||
S&P 500® Index* | 27.18% | 15.17% | 7.46% | |||||||||
Lipper Large-Cap Core Funds Classification Average* | 26.63% | 14.22% | 7.02% | |||||||||
Class C Shares | 31.08% | 14.33% | 5.73% | |||||||||
Class I Shares | 32.43% | 15.48% | 6.83% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 24.87% | 10.03% | 6.75% | |||||||||
Class A Shares at maximum Offering Price | 17.71% | 8.74% | 6.12% | |||||||||
Class C Shares | 23.96% | 9.20% | 5.92% | |||||||||
Class I Shares | 25.22% | 10.31% | 7.02% |
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class 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 | Net | |||||||
Class A Shares | 1.41% | 1.30% | ||||||
Class C Shares | 2.16% | 2.05% | ||||||
Class I Shares | 1.16% | 1.05% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2015, so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed 1.30%, 2.05% and 1.05%, for Class A, Class C and Class I Shares, respectively. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
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Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | 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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Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of October 31, 2013
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 31.74% | 17.21% | 8.61% | |||||||||
Class A Shares at maximum Offering Price | 24.13% | 15.84% | 7.97% | |||||||||
Russell 2000® Index* | 36.28% | 17.04% | 9.03% | |||||||||
Lipper Small-Cap Core Funds Classification Average* | 34.76% | 17.45% | 9.16% | |||||||||
Class B Shares w/o CDSC | 30.69% | 16.35% | 7.80% | |||||||||
Class B Shares w/CDSC | 25.69% | 16.24% | 7.80% | |||||||||
Class C Shares | 30.67% | 16.32% | 7.79% | |||||||||
Class R3 Shares | 31.37% | 16.94% | 8.36% | |||||||||
Class I Shares | 32.02% | 17.51% | 8.88% |
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 22.24% | 11.55% | 9.22% | |||||||||
Class A Shares at maximum Offering Price | 15.25% | 10.23% | 8.57% | |||||||||
Class B Shares w/o CDSC | 21.26% | 10.70% | 8.40% | |||||||||
Class B Shares w/CDSC | 16.44% | 10.57% | 8.40% | |||||||||
Class C Shares | 21.23% | 10.70% | 8.40% | |||||||||
Class R3 Shares | 21.86% | 11.25% | 8.97% | |||||||||
Class I Shares | 22.44% | 11.81% | 9.49% |
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within twelve months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Expense | ||||
Class A Shares | 1.36% | |||
Class B Shares | 2.11% | |||
Class C Shares | 2.11% | |||
Class R3 Shares | 1.61% | |||
Class I Shares | 1.11% |
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Growth of an Assumed $10,000 Investment as of October 31, 2013 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
* | 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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Holding Summaries October 31, 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 Large Cap Select Fund
Portfolio Allocation1
Common Stocks | 98.4% | |||
Short-Term Investments | 1.6% | |||
Other3 | (0.0)% | 2 |
Portfolio Composition1
Software | 8.4% | |||
Computers & Peripherals | 6.4% | |||
Specialty Retail | 6.2% | |||
Oil, Gas & Consumable Fuels | 6.1% | |||
Diversified Financial Services | 6.0% | |||
Industrial Conglomerates | 4.3% | |||
Commercial Banks | 4.2% | |||
Electrical Equipment | 3.9% | |||
Household Durables | 3.7% | |||
Pharmaceuticals | 3.5% | |||
Chemicals | 3.4% | |||
Health Care Equipment & Supplies | 3.1% | |||
Media | 2.9% | |||
Biotechnology | 2.8% | |||
Insurance | 2.8% | |||
Machinery | 2.7% | |||
Internet Software & Services | 2.7% | |||
Energy Equipment & Services | 2.3% | |||
Multiline Retail | 2.3% | |||
Leisure Equipment & Products | 2.2% | |||
Short-Term Investments | 1.6% | |||
Other4 | 18.5% |
Top Five Common Stock Holdings1
Apple, Inc. | 4.0% | |||
Microsoft Corporation | 3.2% | |||
General Electric Company | 2.8% | |||
Google Inc., Class A | 2.7% | |||
Pfizer Inc. | 2.3% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Rounds to less than (0.1)%. |
3 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
4 | 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 2.2% of net assets. |
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Nuveen Small Cap Select Fund
Portfolio Allocation1
Common Stocks | 98.5% | |||
Short-Term Investments | 2.5% | |||
Other2 | (1.0)% |
Portfolio Composition1
Commercial Banks | 7.0% | |||
Real Estate Investment Trust | 5.7% | |||
Specialty Retail | 5.3% | |||
Health Care Equipment & Supplies | 5.2% | |||
Capital Markets | 4.5% | |||
Machinery | 4.1% | |||
IT Services | 3.9% | |||
Semiconductors & Equipment | 3.8% | |||
Oil, Gas & Consumable Fuels | 3.6% | |||
Food Products | 3.5% | |||
Software | 3.5% | |||
Communications Equipment | 3.3% | |||
Household Durables | 3.3% | |||
Construction & Engineering | 3.2% | |||
Insurance | 3.0% | |||
Biotechnology | 3.0% | |||
Aerospace & Defense | 2.7% | |||
Health Care Providers & Services | 2.5% | |||
Hotels, Restaurants & Leisure | 2.4% | |||
Distributors | 2.2% | |||
Electronic Equipment & Instruments | 2.0% | |||
Short-Term Investments | 2.5% | |||
Other3 | 19.8% |
Top Five Common Stock Holdings1
East West Bancorp Inc. | 2.0% | |||
Waddell & Reed Financial Inc., Class A | 1.8% | |||
Treehouse Foods Inc. | 1.8% | |||
Energy XXI Ltd. | 1.7% | |||
Euronet Worldwide, Inc. | 1.7% |
1 | As a percentage of net assets. Holdings are subject to change. |
2 | Other assets less liabilities, which includes investments purchased with collateral from securities lending as presented in the Fund’s Portfolio of Investments. |
3 | 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 2.0%. |
Nuveen Investments | 19 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Select Fund
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||
A Shares | C Shares | I Shares | A Shares | C Shares | I Shares | |||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||
Ending Account Value (10/31/13) | $ | 1,146.10 | $ | 1,141.50 | $ | 1,147.70 | $ | 1,018.50 | $ | 1,014.77 | $ | 1,019.76 | ||||||||||||
Expenses Incurred During Period | $ | 7.19 | $ | 11.17 | $ | 5.85 | $ | 6.77 | $ | 10.51 | $ | 5.50 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.33%, 2.07% and 1.08% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Small Cap Select Fund
Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||||||||
A Shares | B Shares | C Shares | R3 Shares | I Shares | A Shares | B Shares | C Shares | R3 Shares | I Shares | |||||||||||||||||||||||||||||||
Beginning Account Value (5/01/13) | $ | 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 | ||||||||||||||||||||
Ending Account Value (10/31/13) | $ | 1,168.90 | $ | 1,164.40 | $ | 1,163.80 | $ | 1,167.60 | $ | 1,170.60 | $ | 1,018.45 | $ | 1,014.62 | $ | 1,014.62 | $ | 1,017.14 | $ | 1,019.71 | ||||||||||||||||||||
Expenses Incurred During Period | $ | 7.33 | $ | 11.46 | $ | 11.45 | $ | 8.74 | $ | 5.96 | $ | 6.82 | $ | 10.66 | $ | 10.66 | $ | 8.13 | $ | 5.55 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.34%, 2.10%, 2.10%, 1.60% and 1.09% for Classes A, B, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
20 | Nuveen Investments |
Report of Independent Registered
Public Accounting Firm
To the Board of Directors and Shareholders of
Nuveen Investment Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Large Cap Select Fund and Nuveen Small Cap Select Fund (each a series of the Nuveen Investment Funds, Inc., hereinafter referred to as the “Funds”) at October 31, 2013, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial statements of the Funds for the years ended October 31, 2011 and prior were audited by other independent auditors whose report dated December 28, 2011 expressed an unqualified opinion on those statements.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
December 27, 2013
Nuveen Investments | 21 |
Portfolio of Investments October 31, 2013
Nuveen Large Cap Select Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 115.5% | ||||||||||||||
COMMON STOCKS – 98.4% | ||||||||||||||
Aerospace & Defense – 2.0% | ||||||||||||||
6,059 | Boeing Company | $ | 790,700 | |||||||||||
Airlines – 1.3% | ||||||||||||||
20,121 | Delta Air Lines, Inc., (2) | 530,792 | ||||||||||||
Auto Components – 1.1% | ||||||||||||||
4,096 | BorgWarner Inc., (2) | 422,420 | ||||||||||||
Automobiles – 1.0% | ||||||||||||||
4,780 | Daimler AG, (2) | 390,765 | ||||||||||||
Biotechnology – 2.8% | ||||||||||||||
3,248 | Celgene Corporation, (3) | 482,296 | ||||||||||||
9,021 | Gilead Sciences, Inc., (2), (3) | 640,401 | ||||||||||||
Total Biotechnology | 1,122,697 | |||||||||||||
Capital Markets – 1.0% | ||||||||||||||
14,054 | Morgan Stanley | 403,771 | ||||||||||||
Chemicals – 3.4% | ||||||||||||||
5,128 | Monsanto Company | 537,825 | ||||||||||||
2,593 | PPG Industries, Inc. | 473,430 | ||||||||||||
3,730 | WR Grace & Company, (3) | �� | 341,892 | |||||||||||
Total Chemicals | 1,353,147 | |||||||||||||
Commercial Banks – 4.2% | ||||||||||||||
10,874 | BNP Paribas SA, (2) | 402,229 | ||||||||||||
22,241 | Fifth Third Bancorp. | 423,246 | ||||||||||||
87,421 | Lloyds TSB Group PLC, (2), (3) | 439,728 | ||||||||||||
40,450 | Regions Financial Corporation | 389,534 | ||||||||||||
Total Commercial Banks | 1,654,737 | |||||||||||||
Commercial Services & Supplies – 1.2% | ||||||||||||||
23,042 | Pitney Bowes Inc., (2) | 491,716 | ||||||||||||
Communications Equipment – 1.4% | ||||||||||||||
24,004 | Cisco Systems, Inc. | 540,090 | ||||||||||||
Computers & Peripherals – 6.4% | ||||||||||||||
3,046 | Apple, Inc. | 1,591,078 | ||||||||||||
20,316 | Hewlett-Packard Company | 495,101 |
22 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Computers & Peripherals (continued) | ||||||||||||||
6,449 | Western Digital Corporation | $ | 449,044 | |||||||||||
Total Computers & Peripherals | 2,535,223 | |||||||||||||
Consumer Finance – 1.0% | ||||||||||||||
15,845 | SLM Corporation | 401,988 | ||||||||||||
Diversified Financial Services – 6.0% | ||||||||||||||
55,117 | Bank of America Corporation | 769,433 | ||||||||||||
17,059 | Citigroup Inc. | 832,138 | ||||||||||||
14,830 | JPMorgan Chase & Co. | 764,338 | ||||||||||||
Total Diversified Financial Services | 2,365,909 | |||||||||||||
Electrical Equipment – 3.9% | ||||||||||||||
5,692 | Eaton Corporation PLC | 401,628 | ||||||||||||
9,753 | Emerson Electric Company | 653,158 | ||||||||||||
4,354 | Rockwell Automation, Inc., (2) | 480,725 | ||||||||||||
Total Electrical Equipment | 1,535,511 | |||||||||||||
Energy Equipment & Services – 2.3% | ||||||||||||||
7,459 | Halliburton Company | 395,551 | ||||||||||||
5,501 | Schlumberger Limited | 515,554 | ||||||||||||
Total Energy Equipment & Services | 911,105 | |||||||||||||
Food Products – 1.4% | ||||||||||||||
16,744 | Mondelez International Inc., Class A | 563,268 | ||||||||||||
Health Care Equipment & Supplies – 3.1% | ||||||||||||||
28,384 | Boston Scientific Corporation, (3) | 331,809 | ||||||||||||
7,351 | Saint Jude Medical Inc., (2) | 421,874 | ||||||||||||
6,430 | Stryker Corporation | 474,920 | ||||||||||||
Total Health Care Equipment & Supplies | 1,228,603 | |||||||||||||
Household Durables – 3.7% | ||||||||||||||
8,275 | Jarden Corporation, (3) | 458,104 | ||||||||||||
4,167 | Mohawk Industries Inc., (3) | 551,794 | ||||||||||||
3,118 | Whirlpool Corporation | 455,259 | ||||||||||||
Total Household Durables | 1,465,157 | |||||||||||||
Industrial Conglomerates – 4.3% | ||||||||||||||
8,440 | Danaher Corporation | 608,440 | ||||||||||||
41,798 | General Electric Company | 1,092,600 | ||||||||||||
Total Industrial Conglomerates | 1,701,040 | |||||||||||||
Insurance – 2.8% | ||||||||||||||
11,476 | Lincoln National Corporation | 521,125 | ||||||||||||
7,158 | Prudential Financial, Inc. | 582,590 | ||||||||||||
Total Insurance | 1,103,715 |
Nuveen Investments | 23 |
Portfolio of Investments October 31, 2013
Nuveen Large Cap Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Internet & Catalog Retail – 1.1% | ||||||||||||||
421 | priceline.com Incorporated, (3) | $ | 443,662 | |||||||||||
Internet Software & Services – 2.7% | ||||||||||||||
1,028 | Google Inc., Class A, (3) | 1,059,433 | ||||||||||||
IT Services – 1.8% | ||||||||||||||
966 | MasterCard, Inc., Class A | 692,719 | ||||||||||||
Leisure Equipment & Products – 2.2% | ||||||||||||||
9,383 | Brunswick Corporation, (2) | 423,455 | ||||||||||||
3,445 | Polaris Industries Inc., (2) | 451,123 | ||||||||||||
Total Leisure Equipment & Products | 874,578 | |||||||||||||
Life Sciences Tools & Services – 1.1% | ||||||||||||||
8,456 | Agilent Technologies, Inc. | 429,227 | ||||||||||||
Machinery – 2.7% | ||||||||||||||
6,305 | Caterpillar Inc. | 525,585 | ||||||||||||
7,048 | Illinois Tool Works, Inc. | 555,312 | ||||||||||||
Total Machinery | 1,080,897 | |||||||||||||
Media – 2.9% | ||||||||||||||
14,910 | Comcast Corporation, Class A | 709,418 | ||||||||||||
2,922 | Liberty Media Corporation, (3) | 446,803 | ||||||||||||
Total Media | 1,156,221 | |||||||||||||
Multiline Retail – 2.3% | ||||||||||||||
7,766 | Kohl’s Corporation, (2) | 441,109 | ||||||||||||
9,909 | Macy’s, Inc. | 456,904 | ||||||||||||
Total Multiline Retail | 898,013 | |||||||||||||
Office Electronics – 1.0% | ||||||||||||||
40,722 | Xerox Corporation | 404,777 | ||||||||||||
Oil, Gas & Consumable Fuels – 6.1% | ||||||||||||||
6,731 | Anadarko Petroleum Corporation | 641,397 | ||||||||||||
5,105 | Chevron Corporation | 612,396 | ||||||||||||
7,980 | Cobalt International Energy, Inc., (2), (3) | 185,216 | ||||||||||||
15,677 | Marathon Oil Corporation | 552,771 | ||||||||||||
4,358 | Occidental Petroleum Corporation | 418,717 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 2,410,497 | |||||||||||||
Paper & Forest Products – 1.0% | ||||||||||||||
8,908 | International Paper Company | 397,386 | ||||||||||||
Pharmaceuticals – 3.5% | ||||||||||||||
30,166 | Pfizer Inc. | 925,493 | ||||||||||||
14,738 | Zoetis Incorporated | 466,605 | ||||||||||||
Total Pharmaceuticals | 1,392,098 |
24 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Professional Services – 1.1% | ||||||||||||||
11,418 | Nielsen Holdings BV, (2) | $ | 450,326 | |||||||||||
Software – 8.4% | ||||||||||||||
10,147 | Adobe Systems Incorporated, (3) | 549,967 | ||||||||||||
12,910 | Autodesk, Inc., (3) | 515,238 | ||||||||||||
17,287 | CA Inc. | 549,035 | ||||||||||||
35,576 | Microsoft Corporation | 1,257,612 | ||||||||||||
20,291 | Symantec Corporation | 461,417 | ||||||||||||
Total Software | 3,333,269 | |||||||||||||
Specialty Retail – 6.2% | ||||||||||||||
9,180 | Abercrombie & Fitch Co., Class A, (2) | 344,066 | ||||||||||||
9,214 | Best Buy Co., Inc. | 394,359 | ||||||||||||
9,270 | Foot Locker, Inc., (2) | 321,669 | ||||||||||||
16,926 | Lowe’s Companies, Inc., (2) | 842,576 | ||||||||||||
32,929 | Staples, Inc., (2) | 530,815 | ||||||||||||
Total Specialty Retail | 2,433,485 | |||||||||||||
Total Common Stocks (cost $32,098,538) | 38,968,942 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 17.1% | ||||||||||||||
Money Market Funds – 17.1% | ||||||||||||||
6,758,245 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 6,758,245 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $6,758,245) | 6,758,245 | |||||||||||||
Total Long-Term Investments (cost $38,856,783) | 45,727,187 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.6% | ||||||||||||||
Money Market Funds – 1.6% | ||||||||||||||
626,846 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 626,846 | |||||||||||
|
| |||||||||||||
Total Short-Term Investments (cost $626,846) | 626,846 | |||||||||||||
Total Investments (cost $39,483,629) – 117.1% | 46,354,033 | |||||||||||||
Other Assets Less Liabilities – (17.1)% | (6,766,240 | ) | ||||||||||||
Net Assets – 100% | $ | 39,587,793 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or a portion of investment, is out on loan for securities lending. The total value of securities out on loan as of the end of the reporting period was $6,499,177. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
See accompanying notes to financial statements.
Nuveen Investments | 25 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Select Fund
Shares | Description (1) | Value | ||||||||||||
LONG-TERM INVESTMENTS – 111.2% | ||||||||||||||
COMMON STOCKS – 98.5% | ||||||||||||||
Aerospace & Defense – 2.7% | ||||||||||||||
294,487 | Orbital Sciences Corporation, (2) | $ | 6,793,815 | |||||||||||
81,828 | Triumph Group Inc., (3) | 5,862,976 | ||||||||||||
Total Aerospace & Defense | 12,656,791 | |||||||||||||
Biotechnology – 3.0% | ||||||||||||||
13,223 | Aegerion Pharmaceuticals Inc., (2) | 1,095,129 | ||||||||||||
30,363 | Alnylam Pharmaceuticals, Inc., (2) | 1,749,212 | ||||||||||||
50,720 | Celldex Therapeutics, Inc., (2), (3) | 1,161,995 | ||||||||||||
84,486 | Cepheid, Inc., (2), (3) | 3,440,270 | ||||||||||||
45,604 | Cubist Pharmaceuticals Inc., (2) | 2,827,448 | ||||||||||||
68,466 | ISIS Pharmaceuticals, Inc., (2), (3) | 2,277,864 | ||||||||||||
53,006 | NPS Pharmaceuticals, Inc., (2) | 1,525,513 | ||||||||||||
Total Biotechnology | 14,077,431 | |||||||||||||
Capital Markets – 4.5% | ||||||||||||||
131,976 | Evercore Partners Inc., Class A, (3) | 6,660,829 | ||||||||||||
533,070 | Pennantpark Investment Corporation | 6,002,368 | ||||||||||||
140,886 | Waddell & Reed Financial Inc., Class A | 8,699,711 | ||||||||||||
Total Capital Markets | 21,362,908 | |||||||||||||
Chemicals – 1.6% | ||||||||||||||
316,770 | Chemtura Corporation, (2) | 7,760,865 | ||||||||||||
Commercial Banks – 7.0% | ||||||||||||||
94,383 | Banner Corporation | 3,611,094 | ||||||||||||
490,290 | Cardinal Financial Corporation, (3) | 8,089,785 | ||||||||||||
282,986 | East West Bancorp Inc. | 9,533,798 | ||||||||||||
248,191 | Glacier Bancorp, Inc., (3) | 6,857,517 | ||||||||||||
99,030 | Texas Capital BancShares, Inc., (2) | 5,154,512 | ||||||||||||
Total Commercial Banks | 33,246,706 | |||||||||||||
Communications Equipment – 3.3% | ||||||||||||||
332,728 | IXIA, (2) | 4,718,083 | ||||||||||||
391,737 | JDS Uniphase Corporation, (2) | 5,127,837 | ||||||||||||
140,468 | Plantronics Inc. | 6,031,696 | ||||||||||||
Total Communications Equipment | 15,877,616 |
26 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Construction & Engineering – 3.2% | ||||||||||||||
182,996 | MasTec Inc., (2), (3) | $ | 5,850,382 | |||||||||||
225,543 | MYR Group Inc., (2) | 5,965,612 | ||||||||||||
133,509 | Primoris Services Corporation | 3,476,574 | ||||||||||||
Total Construction & Engineering | 15,292,568 | |||||||||||||
Distributors – 2.2% | ||||||||||||||
96,014 | Core-Mark Holding Company, Inc. | 6,791,070 | ||||||||||||
64,298 | Pool Corporation | 3,496,525 | ||||||||||||
Total Distributors | 10,287,595 | |||||||||||||
Diversified Consumer Services – 1.4% | ||||||||||||||
110,485 | Capella Education Company, (2) | 6,730,746 | ||||||||||||
Diversified Telecommunication Services – 0.8% | ||||||||||||||
563,416 | Cbeyond Inc., (2) | 3,628,399 | ||||||||||||
Electric Utilities – 1.0% | ||||||||||||||
128,282 | UIL Holdings Corporation | 4,941,423 | ||||||||||||
Electrical Equipment – 1.5% | ||||||||||||||
98,462 | Regal-Beloit Corporation | 7,220,218 | ||||||||||||
Electronic Equipment & Instruments – 2.0% | ||||||||||||||
418,004 | Newport Corporation, (2) | 6,633,723 | ||||||||||||
45,473 | Rogers Corporation, (2) | 2,772,034 | ||||||||||||
Total Electronic Equipment & Instruments | 9,405,757 | |||||||||||||
Energy Equipment & Services – 1.9% | ||||||||||||||
83,701 | Atwood Oceanics Inc., (2), (3) | 4,447,034 | ||||||||||||
673,796 | Parker Drilling Company, (2), (3) | 4,851,331 | ||||||||||||
Total Energy Equipment & Services | 9,298,365 | |||||||||||||
Food Products – 3.5% | ||||||||||||||
138,087 | Boulder Brands Inc., (2), (3) | 2,263,246 | ||||||||||||
548,624 | SunOpta, Inc., (2), (3) | 5,908,680 | ||||||||||||
114,922 | Treehouse Foods Inc., (2) | 8,419,186 | ||||||||||||
Total Food Products | 16,591,112 | |||||||||||||
Gas Utilities – 0.8% | ||||||||||||||
91,613 | Atmos Energy Corporation, (3) | 4,055,708 | ||||||||||||
Health Care Equipment & Supplies – 5.2% | ||||||||||||||
79,716 | Align Technology, Inc., (2), (3) | 4,548,595 | ||||||||||||
150,107 | Integra Lifesciences Holdings Corporation, (2), (3) | 6,871,898 | ||||||||||||
372,551 | Merit Medical Systems, Inc., (2) | 5,957,090 | ||||||||||||
171,165 | Thoratec Corporation, (2) | 7,392,616 | ||||||||||||
Total Health Care Equipment & Supplies | 24,770,199 |
Nuveen Investments | 27 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Health Care Providers & Services – 2.5% | ||||||||||||||
209,855 | HealthSouth Corporation | $ | 7,368,009 | |||||||||||
41,327 | Medax Inc., (2) | 4,505,470 | ||||||||||||
Total Health Care Providers & Services | 11,873,479 | |||||||||||||
Hotels, Restaurants & Leisure – 2.4% | ||||||||||||||
137,856 | Life Time Fitness Inc., (2), (3) | 6,261,420 | ||||||||||||
190,162 | Texas Roadhouse, Inc. | 5,214,242 | ||||||||||||
Total Hotels, Restaurants & Leisure | 11,475,662 | |||||||||||||
Household Durables – 3.3% | ||||||||||||||
212,569 | La Z Boy Inc. | 4,906,093 | ||||||||||||
158,886 | Meritage Corporation, (2), (3) | 7,211,836 | ||||||||||||
236,030 | Tri Pointe Homes, Incorporated, (2), (3) | 3,757,598 | ||||||||||||
Total Household Durables | 15,875,527 | |||||||||||||
Insurance – 3.0% | ||||||||||||||
235,046 | American Equity Investment Life Holding Company, (3) | 4,898,359 | ||||||||||||
245,599 | CNO Financial Group Inc. | 3,826,432 | ||||||||||||
516,782 | Maiden Holdings, Ltd | 5,658,763 | ||||||||||||
Total Insurance | 14,383,554 | |||||||||||||
Internet Software & Services – 1.8% | ||||||||||||||
180,146 | Constant Contact Inc., (2) | 4,667,583 | ||||||||||||
146,539 | Web.com, Inc., (2) | 3,949,226 | ||||||||||||
Total Internet Software & Services | 8,616,809 | |||||||||||||
IT Services – 3.9% | ||||||||||||||
188,124 | Euronet Worldwide, Inc., (2) | 8,164,582 | ||||||||||||
369,188 | ServiceSource International Inc., (2) | 3,994,614 | ||||||||||||
339,920 | Sykes Enterprises Inc., (2) | 6,363,302 | ||||||||||||
Total IT Services | 18,522,498 | |||||||||||||
Leisure Equipment & Products – 1.2% | ||||||||||||||
131,166 | Brunswick Corporation, (3) | 5,919,522 | ||||||||||||
Machinery – 4.1% | ||||||||||||||
146,785 | Actuant Corporation, Class A | 5,513,245 | ||||||||||||
224,217 | Altra Industrial Motion, Inc. | 6,809,470 | ||||||||||||
125,302 | Harsco Corporation | 3,493,420 | ||||||||||||
257,422 | Titan International Inc., (3) | 3,732,619 | ||||||||||||
Total Machinery | 19,548,754 | |||||||||||||
Metals & Mining – 0.8% | ||||||||||||||
109,443 | US Silica Holdings Inc., (3) | 3,810,805 | ||||||||||||
Oil, Gas & Consumable Fuels – 3.6% | ||||||||||||||
139,591 | Delek US Holdings Inc. | 3,566,550 |
28 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||
282,253 | Energy XXI Ltd. | $ | 8,202,272 | |||||||||||
231,393 | Goodrich Petroleum Corporation, (2) | 5,412,282 | ||||||||||||
Total Oil, Gas & Consumable Fuels | 17,181,104 | |||||||||||||
Paper & Forest Products – 1.0% | ||||||||||||||
55,562 | Domtar Corporation | 4,706,657 | ||||||||||||
Pharmaceuticals – 0.8% | ||||||||||||||
50,805 | Salix Pharmaceuticals Limited, (2) | 3,645,259 | ||||||||||||
Professional Services – 1.8% | ||||||||||||||
398,513 | CBIZ Inc., (2), (3) | 3,251,866 | ||||||||||||
221,671 | TrueBlue Inc., (2), (3) | 5,475,274 | ||||||||||||
Total Professional Services | 8,727,140 | |||||||||||||
Real Estate Investment Trust – 5.7% | ||||||||||||||
199,206 | CubeSmart | 3,639,494 | ||||||||||||
63,308 | EastGroup Properties Inc., (3) | 4,030,187 | ||||||||||||
165,961 | LaSalle Hotel Properties | 5,153,089 | ||||||||||||
646,596 | MFA Mortgage Investments, Inc. | 4,791,276 | ||||||||||||
147,660 | National Retail Properties, Inc., (3) | 5,079,504 | ||||||||||||
54,368 | PS Business Parks Inc., (3) | 4,430,448 | ||||||||||||
Total Real Estate Investment Trust | 27,123,998 | |||||||||||||
Road & Rail – 1.3% | ||||||||||||||
148,348 | Con-Way, Inc. | 6,111,938 | ||||||||||||
Semiconductors & Equipment – 3.8% | ||||||||||||||
741,176 | Integrated Device Technology, Inc., (2), (3) | 7,886,113 | ||||||||||||
140,306 | MKS Instruments Inc. | 4,158,670 | ||||||||||||
188,337 | Semtech Corporation, (2) | 5,859,164 | ||||||||||||
Total Semiconductors & Equipment | 17,903,947 | |||||||||||||
Software – 3.5% | ||||||||||||||
137,995 | Aspen Technology Inc., (2) | 5,275,549 | ||||||||||||
100,164 | Guidewire Software Incorporated, (2) | 5,080,318 | ||||||||||||
177,568 | Synchronoss Technologies, Inc., (2), (3) | 6,147,404 | ||||||||||||
Total Software | 16,503,271 | |||||||||||||
Specialty Retail – 5.3% | ||||||||||||||
208,553 | Ann Inc., (2) | 7,374,434 | ||||||||||||
274,021 | Ascena Retail Group Inc., (2) | 5,422,876 | ||||||||||||
227,207 | Kirkland’s, Inc., (2) | 4,032,924 | ||||||||||||
134,046 | Tile Shop Holdings Inc., (2) | 2,993,247 | ||||||||||||
183,446 | Zumiez, Inc., (2) | 5,437,339 | ||||||||||||
Total Specialty Retail | 25,260,820 |
Nuveen Investments | 29 |
Portfolio of Investments October 31, 2013
Nuveen Small Cap Select Fund (continued)
Shares | Description (1) | Value | ||||||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||||||||
123,949 | G III Apparel Group, Limited, (2) | $ | 7,030,387 | |||||||||||
Thrifts & Mortgage Finance – 1.6% | ||||||||||||||
489,364 | Everbank Financial Corporation | 7,399,185 | ||||||||||||
Total Common Stocks (cost $355,916,516) | 468,824,723 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 12.7% | ||||||||||||||
Money Market Funds – 12.7% | ||||||||||||||
60,686,692 | Mount Vernon Securities Lending Prime Portfolio, 0.177%, (4), (5) | $ | 60,686,692 | |||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $60,686,692) | 60,686,692 | |||||||||||||
Total Long-Term Investments (cost $416,603,208) | 529,511,415 | |||||||||||||
Shares | Description (1) | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 2.5% | ||||||||||||||
Money Market Funds – 2.5% | ||||||||||||||
12,076,801 | First American Treasury Obligations Fund, Class Z, 0.000%, (4) | $ | 12,076,801 | |||||||||||
|
| |||||||||||||
Total Short-Term Investments (cost $12,076,801) | 12,076,801 | |||||||||||||
Total Investments (cost $428,680,009) – 113.7% | 541,588,216 | |||||||||||||
Other Assets Less Liabilities – (13.7)% | (65,447,346 | ) | ||||||||||||
Net Assets – 100% | $ | 476,140,870 |
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 of the reporting period was $58,030,706. |
(4) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
See accompanying notes to financial statements.
30 | Nuveen Investments |
Assets and Liabilities October 31, 2013
Large Cap Select | Small Cap Select | |||||||
Assets | ||||||||
Investments, at value (cost $32,725,384 and $367,993,317, respectively) | $ | 39,595,788 | $ | 480,901,524 | ||||
Investment purchased with collateral from securities lending, at value (cost approximates value) | 6,758,245 | 60,686,692 | ||||||
Receivable for: | ||||||||
Dividends | 15,478 | 142,527 | ||||||
Due from broker | 1,066 | 33,338 | ||||||
Investments sold | — | 3,261,050 | ||||||
Shares sold | 23,359 | 1,022,025 | ||||||
Other assets | 3,179 | 11,468 | ||||||
Total assets | 46,397,115 | 546,058,624 | ||||||
Liabilities | ||||||||
Payable for: | ||||||||
Collateral from securities lending program | 6,758,245 | 60,686,692 | ||||||
Investments purchased | — | 7,472,461 | ||||||
Shares redeemed | 14,536 | 1,140,320 | ||||||
Accrued expenses: | ||||||||
Directors fees | 303 | 13,576 | ||||||
Management fees | 26,194 | 356,294 | ||||||
12b-1 distribution and service fees | 1,314 | 52,880 | ||||||
Other | 8,730 | 195,531 | ||||||
Total liabilities | 6,809,322 | 69,917,754 | ||||||
Net assets | $ | 39,587,793 | $ | 476,140,870 | ||||
Class A Shares | ||||||||
Net assets | $ | 4,625,374 | $ | 161,488,048 | ||||
Shares outstanding | 262,133 | 10,753,463 | ||||||
Net asset value per share | $ | 17.65 | $ | 15.02 | ||||
Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) | $ | 18.73 | $ | 15.94 | ||||
Class B Shares | ||||||||
Net assets | N/A | $ | 1,585,011 | |||||
Shares outstanding | N/A | 145,328 | ||||||
Net asset value and offering price per share | N/A | $ | 10.91 | |||||
Class C Shares | ||||||||
Net assets | $ | 518,338 | $ | 10,330,708 | ||||
Shares outstanding | 31,044 | 794,502 | ||||||
Net asset value and offering price per share | $ | 16.70 | $ | 13.00 | ||||
Class R3 Shares | ||||||||
Net assets | N/A | $ | 19,673,498 | |||||
Shares outstanding | N/A | 1,358,032 | ||||||
Net asset value and offering price per share | N/A | $ | 14.49 | |||||
Class I Shares | ||||||||
Net assets | $ | 34,444,081 | $ | 283,063,605 | ||||
Shares outstanding | 1,936,675 | 16,914,944 | ||||||
Net asset value and offering price per share | $ | 17.79 | $ | 16.73 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 96,662,706 | $ | 326,486,494 | ||||
Undistributed (Over-distribution of) net investment income | 178,209 | 1,290,550 | ||||||
Accumulated net realized gain (loss) | (64,123,526 | ) | 35,455,619 | |||||
Net unrealized appreciation (depreciation) | 6,870,404 | 112,908,207 | ||||||
Net assets | $ | 39,587,793 | $ | 476,140,870 | ||||
Authorized shares – per class | 2 billion | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 |
N/A – | Fund does not offer share class. At the close of business on March 4, 2013, Large Cap Select liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
Nuveen Investments | 31 |
Operations Year Ended October 31, 2013
Large Cap Select | Small Cap Select | |||||||
Investment Income | ||||||||
Dividend and interest income (net of foreign tax withheld of $6,100 and $–, respectively) | $ | 667,846 | $ | 5,729,091 | ||||
Securities lending income, net | 12,275 | 381,112 | ||||||
Total investment income | 680,121 | 6,110,203 | ||||||
Expenses | ||||||||
Management fees | 283,218 | 4,064,982 | ||||||
12b-1 service fees – Class A | 9,025 | 397,029 | ||||||
12b-1 distribution and service fees – Class B | N/A | 17,661 | ||||||
12b-1 distribution and service fees – Class C | 2,789 | 100,209 | ||||||
12b-1 distribution and service fees – Class R3(1) | 184 | 93,489 | ||||||
Shareholder servicing agent fees and expenses | 22,965 | 690,882 | ||||||
Custodian fees and expenses | 17,694 | 85,558 | ||||||
Directors fees and expenses | 1,139 | 11,920 | ||||||
Professional fees | 18,282 | 26,451 | ||||||
Shareholder reporting expenses | 9,723 | 15,110 | ||||||
Federal and state registration fees | 50,038 | 70,798 | ||||||
Other expenses | 5,319 | 27,603 | ||||||
Total expenses before fee waiver/expense reimbursement | 420,376 | 5,601,692 | ||||||
Fee waiver/expense reimbursement | — | (43,537 | ) | |||||
Net expenses | 420,376 | 5,558,155 | ||||||
Net investment income (loss) | 259,745 | 552,048 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from investments | 6,822,162 | 39,316,560 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 3,522,974 | 87,302,103 | ||||||
Net realized and unrealized gain (loss) | 10,345,136 | 126,618,663 | ||||||
Net increase (decrease) in net assets from operations | $ | 10,604,881 | $ | 127,170,711 |
N/A – | Fund does not offer share class. |
(1) – | At the close of business on March 4, 2013, Large Cap Select liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
32 | Nuveen Investments |
Changes in Net Assets
Large Cap Select | Small Cap Select | |||||||||||||||||
Year Ended | Year Ended 10/31/12 | Year Ended | Year Ended 10/31/12 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 259,745 | $ | 227,174 | $ | 552,048 | $ | (1,438,470 | ) | |||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments | 6,822,162 | 5,458,240 | 39,316,560 | 72,006,971 | ||||||||||||||
Futures contracts | — | — | — | 1,762,906 | ||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 3,522,974 | 476,212 | 87,302,103 | (482,307 | ) | |||||||||||||
Net increase (decrease) in net assets from operations | 10,604,881 | 6,161,626 | 127,170,711 | 71,849,100 | ||||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A | (14,322 | ) | — | — | — | |||||||||||||
Class B | N/A | N/A | — | — | ||||||||||||||
Class C | — | — | — | — | ||||||||||||||
Class R3(1) | (250 | ) | — | — | — | |||||||||||||
Class I | (234,154 | ) | (49,038 | ) | — | — | ||||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A | — | — | (24,007,903 | ) | (6,635,027 | ) | ||||||||||||
Class B | N/A | N/A | (393,486 | ) | (85,210 | ) | ||||||||||||
Class C | — | — | (1,721,258 | ) | (355,958 | ) | ||||||||||||
Class R3(1) | — | — | (2,881,156 | ) | (488,508 | ) | ||||||||||||
Class I | — | — | (37,556,779 | ) | (5,892,281 | ) | ||||||||||||
Decrease in net assets from distributions to shareholders | (248,726 | ) | (49,038 | ) | (66,560,582 | ) | (13,456,984 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 3,323,471 | 2,708,944 | 82,630,379 | 104,005,532 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 132,143 | 22,258 | 59,872,466 | 12,262,815 | ||||||||||||||
3,455,614 | 2,731,202 | 142,502,845 | 116,268,347 | |||||||||||||||
Cost of shares redeemed | (12,002,875 | ) | (32,611,841 | ) | (174,831,672 | ) | (313,697,046 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (8,547,261 | ) | (29,880,639 | ) | (32,328,827 | ) | (197,428,699 | ) | ||||||||||
Net increase (decrease) in net assets | 1,808,894 | (23,768,051 | ) | 28,281,302 | (139,036,583 | ) | ||||||||||||
Net assets at the beginning of period | 37,778,899 | 61,546,950 | 447,859,568 | 586,896,151 | ||||||||||||||
Net assets at the end of period | $ | 39,587,793 | $ | 37,778,899 | $ | 476,140,870 | $ | 447,859,568 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 178,209 | $ | 167,190 | $ | 1,290,550 | $ | (18,982 | ) |
N/A – | Fund does not offer share class. |
(1) | At the close of business on March 4, 2013, Large Cap Select liquidated all of its Class R3 Shares. |
See accompanying notes to financial statements.
Nuveen Investments | 33 |
Highlights
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
LARGE CAP SELECT | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (1/03) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 13.42 | $ | .07 | $ | 4.22 | $ | 4.29 | $ | (.06 | ) | $ | — | $ | (.06 | ) | $ | 17.65 | ||||||||||||||||
2012 | 11.73 | .03 | 1.66 | 1.69 | — | — | — | 13.42 | ||||||||||||||||||||||||||
2011 | 11.65 | (.02 | ) | .10 | .08 | — | — | — | 11.73 | |||||||||||||||||||||||||
2010 | 9.80 | (.01 | ) | 1.92 | 1.91 | (.06 | ) | — | (.06 | ) | 11.65 | |||||||||||||||||||||||
2009 | 8.83 | .04 | .97 | 1.01 | (.04 | ) | — | (.04 | ) | 9.80 | ||||||||||||||||||||||||
Class C (1/03) |
| |||||||||||||||||||||||||||||||||
2013 | 12.73 | (.05 | ) | 4.02 | 3.97 | — | — | — | 16.70 | |||||||||||||||||||||||||
2012 | 11.21 | (.06 | ) | 1.58 | 1.52 | — | — | — | 12.73 | |||||||||||||||||||||||||
2011 | 11.22 | (.11 | ) | .10 | (.01 | ) | — | — | — | 11.21 | ||||||||||||||||||||||||
2010 | 9.46 | (.08 | ) | 1.84 | 1.76 | — | — | — | 11.22 | |||||||||||||||||||||||||
2009 | 8.56 | (.02 | ) | .93 | .91 | (.01 | ) | — | (.01 | ) | 9.46 | |||||||||||||||||||||||
Class I (1/03) |
| |||||||||||||||||||||||||||||||||
2013 | 13.52 | .11 | 4.26 | 4.37 | (.10 | ) | — | (.10 | ) | 17.79 | ||||||||||||||||||||||||
2012 | 11.80 | .07 | 1.66 | 1.73 | (.01 | ) | — | (.01 | ) | 13.52 | ||||||||||||||||||||||||
2011 | 11.71 | .01 | .10 | .11 | (.02 | ) | — | (.02 | ) | 11.80 | ||||||||||||||||||||||||
2010 | 9.85 | .02 | 1.92 | 1.94 | (.08 | ) | — | (.08 | ) | 11.71 | ||||||||||||||||||||||||
2009 | 8.87 | .07 | .96 | 1.03 | (.05 | ) | — | (.05 | ) | 9.85 |
34 | 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) | | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
32.14 | % | $ | 4,625 | 1.33 | % | .43 | % | 1.33 | % | .43 | % | 117 | % | |||||||||||||||||
14.41 | 2,924 | 1.43 | .26 | 1.43 | .26 | 127 | ||||||||||||||||||||||||
.69 | 2,938 | 1.20 | (.18 | ) | 1.20 | (.18 | ) | 139 | ||||||||||||||||||||||
19.49 | 3,487 | 1.32 | (.06 | ) | 1.32 | (.06 | ) | 140 | ||||||||||||||||||||||
11.54 | 3,292 | 1.29 | .52 | 1.29 | .52 | 185 | ||||||||||||||||||||||||
31.08 | 518 | 2.07 | (.34 | ) | 2.07 | (.34 | ) | 117 | ||||||||||||||||||||||
13.65 | 195 | 2.18 | (.49 | ) | 2.18 | (.49 | ) | 127 | ||||||||||||||||||||||
(.09 | ) | 183 | 1.95 | (.90 | ) | 1.95 | (.90 | ) | 139 | |||||||||||||||||||||
18.60 | 175 | 2.07 | (.79 | ) | 2.07 | (.79 | ) | 140 | ||||||||||||||||||||||
10.64 | 186 | 2.05 | (.23 | ) | 2.05 | (.23 | ) | 185 | ||||||||||||||||||||||
32.43 | 34,444 | 1.08 | .72 | 1.08 | .72 | 117 | ||||||||||||||||||||||||
14.79 | 34,554 | 1.18 | .54 | 1.18 | .54 | 127 | ||||||||||||||||||||||||
.89 | 58,314 | .95 | .07 | .95 | .07 | 139 | ||||||||||||||||||||||||
19.75 | 130,803 | 1.07 | .21 | 1.07 | .21 | 140 | ||||||||||||||||||||||||
11.81 | 147,231 | 1.04 | .82 | 1.04 | .82 | 185 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Nuveen Investments | 35 |
Financial Highlights (continued)
Selected data for a share outstanding throughout each period:
Class (Commencement Date) | Investment Operations | Less Distributions | ||||||||||||||||||||||||||||||||
SMALL CAP SELECT | ||||||||||||||||||||||||||||||||||
Year Ended October 31, | Beginning Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||
Class A (5/92) |
| |||||||||||||||||||||||||||||||||
2013 | $ | 13.54 | $ | — | * | $ | 3.63 | $ | 3.63 | $ | — | $ | (2.15 | ) | $ | (2.15 | ) | $ | 15.02 | |||||||||||||||
2012 | 12.44 | (.05 | ) | 1.45 | 1.40 | — | (.30 | ) | (.30 | ) | 13.54 | |||||||||||||||||||||||
2011 | 11.72 | (.09 | ) | .81 | .72 | — | — | — | 12.44 | |||||||||||||||||||||||||
2010 | 9.53 | (.05 | ) | 2.24 | 2.19 | — | — | — | 11.72 | |||||||||||||||||||||||||
2009 | 8.27 | (.01 | ) | 1.27 | 1.26 | — | — | — | 9.53 | |||||||||||||||||||||||||
Class B (3/95) |
| |||||||||||||||||||||||||||||||||
2013 | 10.49 | (.07 | ) | 2.64 | 2.57 | — | (2.15 | ) | (2.15 | ) | 10.91 | |||||||||||||||||||||||
2012 | 9.77 | (.12 | ) | 1.14 | 1.02 | — | (.30 | ) | (.30 | ) | 10.49 | |||||||||||||||||||||||
2011 | 9.27 | (.15 | ) | .65 | .50 | — | — | — | 9.77 | |||||||||||||||||||||||||
2010 | 7.60 | (.10 | ) | 1.77 | 1.67 | — | — | — | 9.27 | |||||||||||||||||||||||||
2009 | 6.64 | (.05 | ) | 1.01 | .96 | — | — | — | 7.60 | |||||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||
2013 | 12.09 | (.09 | ) | 3.15 | 3.06 | — | (2.15 | ) | (2.15 | ) | 13.00 | |||||||||||||||||||||||
2012 | 11.22 | (.13 | ) | 1.30 | 1.17 | — | (.30 | ) | (.30 | ) | 12.09 | |||||||||||||||||||||||
2011 | 10.65 | (.17 | ) | .74 | .57 | — | — | — | 11.22 | |||||||||||||||||||||||||
2010 | 8.73 | (.12 | ) | 2.04 | 1.92 | — | — | — | 10.65 | |||||||||||||||||||||||||
2009 | 7.63 | (.06 | ) | 1.16 | 1.10 | — | — | — | 8.73 | |||||||||||||||||||||||||
Class R3 (1/94) |
| |||||||||||||||||||||||||||||||||
2013 | 13.17 | (.03 | ) | 3.50 | 3.47 | — | (2.15 | ) | (2.15 | ) | 14.49 | |||||||||||||||||||||||
2012 | 12.13 | (.08 | ) | 1.42 | 1.34 | — | (.30 | ) | (.30 | ) | 13.17 | |||||||||||||||||||||||
2011 | 11.46 | (.12 | ) | .79 | .67 | — | — | — | 12.13 | |||||||||||||||||||||||||
2010 | 9.34 | (.08 | ) | 2.20 | 2.12 | — | — | — | 11.46 | |||||||||||||||||||||||||
2009 | 8.12 | (.03 | ) | 1.25 | 1.22 | — | — | — | 9.34 | |||||||||||||||||||||||||
Class I (5/92) |
| |||||||||||||||||||||||||||||||||
2013 | 14.82 | .04 | 4.02 | 4.06 | — | (2.15 | ) | (2.15 | ) | 16.73 | ||||||||||||||||||||||||
2012 | 13.54 | (.02 | ) | 1.60 | 1.58 | — | (.30 | ) | (.30 | ) | 14.82 | |||||||||||||||||||||||
2011 | 12.73 | (.06 | ) | .87 | .81 | — | — | — | 13.54 | |||||||||||||||||||||||||
2010 | 10.33 | (.03 | ) | 2.44 | 2.41 | (.01 | ) | — | (.01 | ) | 12.73 | |||||||||||||||||||||||
2009 | 8.94 | .02 | 1.37 | 1.39 | — | — | — | 10.33 |
36 | 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 Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
31.74 | % | $ | 161,488 | 1.34 | % | (.01 | )% | 1.33 | % | — | %** | 78 | % | |||||||||||||||||
11.62 | 155,624 | 1.36 | (.49 | ) | 1.28 | (.41 | ) | 71 | ||||||||||||||||||||||
6.14 | 275,994 | 1.34 | (.74 | ) | 1.30 | (.70 | ) | 69 | ||||||||||||||||||||||
22.98 | 339,826 | 1.25 | (.49 | ) | 1.24 | (.48 | ) | 88 | ||||||||||||||||||||||
15.24 | 295,348 | 1.26 | (.09 | ) | 1.26 | (.09 | ) | 99 | ||||||||||||||||||||||
30.69 | 1,585 | 2.09 | (.74 | ) | 2.08 | (.73 | ) | 78 | ||||||||||||||||||||||
10.88 | 2,032 | 2.11 | (1.21 | ) | 2.03 | (1.13 | ) | 71 | ||||||||||||||||||||||
5.39 | 2,866 | 2.09 | (1.51 | ) | 2.05 | (1.45 | ) | 69 | ||||||||||||||||||||||
21.97 | 3,925 | 2.00 | (1.23 | ) | 1.99 | (1.22 | ) | 88 | ||||||||||||||||||||||
14.46 | 5,511 | 2.01 | (.80 | ) | 2.01 | (.80 | ) | 99 | ||||||||||||||||||||||
30.67 | 10,331 | 2.09 | (.75 | ) | 2.08 | (.74 | ) | 78 | ||||||||||||||||||||||
10.81 | 10,058 | 2.11 | (1.21 | ) | 2.03 | (1.13 | ) | 71 | ||||||||||||||||||||||
5.35 | 14,009 | 2.09 | (1.50 | ) | 2.05 | (1.45 | ) | 69 | ||||||||||||||||||||||
21.99 | 17,393 | 2.00 | (1.24 | ) | 1.99 | (1.23 | ) | 88 | ||||||||||||||||||||||
14.42 | 16,938 | 2.01 | (.80 | ) | 2.01 | (.80 | ) | 99 | ||||||||||||||||||||||
31.37 | 19,673 | 1.59 | (.25 | ) | 1.58 | (.25 | ) | 78 | ||||||||||||||||||||||
11.42 | 18,386 | 1.61 | (.69 | ) | 1.53 | (.61 | ) | 71 | ||||||||||||||||||||||
5.85 | 20,044 | 1.60 | (1.00 | ) | 1.55 | (.95 | ) | 69 | ||||||||||||||||||||||
22.70 | 18,047 | 1.50 | (.72 | ) | 1.49 | (.71 | ) | 88 | ||||||||||||||||||||||
15.02 | 24,701 | 1.51 | (.31 | ) | 1.51 | (.31 | ) | 99 | ||||||||||||||||||||||
32.02 | 283,064 | 1.09 | .24 | 1.08 | .25 | 78 | ||||||||||||||||||||||||
12.01 | 261,760 | 1.11 | (.19 | ) | 1.03 | (.11 | ) | 71 | ||||||||||||||||||||||
6.36 | 273,983 | 1.09 | (.49 | ) | 1.05 | (.45 | ) | 69 | ||||||||||||||||||||||
23.30 | 400,042 | 1.00 | (.24 | ) | .99 | (.23 | ) | 88 | ||||||||||||||||||||||
15.55 | 322,658 | 1.01 | .19 | 1.01 | .19 | 99 |
(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) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
* | Rounds to less than $.01 per share. |
** | Rounds to less than .01%. |
See accompanying notes to financial statements.
Nuveen Investments | 37 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust Information
Nuveen Investment Funds, Inc. (the “Trust”), is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Large Cap Select Fund (“Large Cap Select”) and Nuveen Small Cap Select Fund (“Small Cap Select”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the state of Maryland on August 20, 1987.
Investment Adviser
On December 31, 2012, the Funds’ investment adviser converted from a Delaware corporation to a Delaware limited liability company. As a result, Nuveen Fund Advisors, Inc., a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, LLC (the “Adviser”). There were no changes to the identities or roles of any personnel as a result of the change.
The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Fund Information
Large Cap Select’s investment objective is 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 common stocks of large-capitalization companies, defined as companies that have market capitalizations of $5 billion or greater at the time of purchase. At the close of business on March 4, 2013, the Fund liquidated all of its Class R3 Shares, and are no longer offered for sale.
Small Cap Select’s investment objective is 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 common stocks of small-capitalization companies, defined as companies that have market capitalizations of less than $3 billion at the time of purchase.
Each Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. Each 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 each Fund’s total assets may be invested in equity securities of emerging market issuers. Each Fund also may invest in options, futures contracts, options on futures contracts and forward foreign currency exchanges contracts (“derivatives”) to manage market or business risk, enhance its return or hedge against adverse movements in currency exchange rates.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with 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 investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income 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.
38 | Nuveen Investments |
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. 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 and net realized gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
The Funds may receive distributions from holdings in Real Estate Investment Trusts (“REITs”). Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. The actual character of distributions to Fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund shareholder may represent a return of capital.
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. Small Cap Select will issue Class B Shares upon the exchange of Class B Shares from another Nuveen mutual fund or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class B Shares are subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class R3 Shares are sold without an up-front sales charge but incur a .25% annual 12b-1 distribution and a .25% annual 12b-1 service fee. Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution fees and service fees, are recorded to the specific class.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
Nuveen Investments | 39 |
Notes to Financial Statements (continued)
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.
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.
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). |
40 | Nuveen 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:
Large Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 38,968,942 | $ | — | $ | — | $ | 38,968,942 | ||||||||
Investments Purchased with Collateral from Securities Lending | 6,758,245 | — | — | 6,758,245 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 626,846 | — | — | 626,846 | ||||||||||||
Total | $ | 46,354,033 | $ | — | $ | — | $ | 46,354,033 | ||||||||
Small Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 468,824,723 | $ | — | $ | — | $ | 468,824,723 | ||||||||
Investments Purchased with Collateral from Securities Lending | 60,686,692 | — | — | 60,686,692 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 12,076,801 | — | — | 12,076,801 | ||||||||||||
Total | $ | 541,588,216 | $ | — | $ | — | $ | 541,588,216 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
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
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in
Nuveen Investments | 41 |
Notes to Financial Statements (continued)
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 and derivatives are recognized as a component of “Net realized gain (loss) from investments and foreign currency,” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency,” on the Statement of Operations, when applicable.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. Each Fund’s policy is to receive cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Collateral from securities lending program” on the Statement of Assets and Liabilities. The adequacy of the collateral is monitored on a daily basis. If the value of the securities on loan increases, such that the level of collateralization falls below 102%, additional collateral is received from the borrower, which is recognized as “Due from broker” on the Statement of Assets and Liabilities, when applicable. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially.
The Funds’ custodian serves as the securities lending agent for the Funds. Each Fund pays the custodian a fee based on the Fund’s proportional share of the custodian’s expense of operating its securities lending program. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending” on the Statement of Assets and Liabilities.
Income from securities lending, net of fees paid, is recognized on the Statement of Operations as “Securities lending income, net.” Securities lending fees paid by each Fund during the fiscal year ended October 31, 2013, were as follows:
Large Cap Select | Small Cap Select | |||||||
Securities lending fees paid | $ | 1,679 | $ | 69,294 |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. 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 fiscal year ended October 31, 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, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the
42 | Nuveen Investments |
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:
Large Cap Select | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 86,580 | $ | 1,345,676 | 25,332 | $ | 331,639 | ||||||||||
Class C | 26,018 | 403,346 | 1,390 | 17,576 | ||||||||||||
Class R3(1) | 1,190 | 16,638 | 1,045 | 13,038 | ||||||||||||
Class I | 97,759 | 1,557,811 | 197,949 | 2,346,691 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 1,055 | 14,175 | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R3(1) | 19 | 251 | — | — | ||||||||||||
Class I | 8,707 | 117,717 | 1,891 | 22,258 | ||||||||||||
221,328 | 3,455,614 | 227,607 | 2,731,202 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (43,427 | ) | (662,562 | ) | (57,942 | ) | (729,523 | ) | ||||||||
Class C | (10,273 | ) | (153,956 | ) | (2,456 | ) | (29,802 | ) | ||||||||
Class R3(1) | (9,255 | ) | (133,842 | ) | (2,655 | ) | (34,618 | ) | ||||||||
Class I | (725,513 | ) | (11,052,515 | ) | (2,584,843 | ) | (31,817,898 | ) | ||||||||
(788,468 | ) | (12,002,875 | ) | (2,647,896 | ) | (32,611,841 | ) | |||||||||
Net increase (decrease) | (567,140 | ) | $ | (8,547,261 | ) | (2,420,289 | ) | $ | (29,880,639 | ) |
(1) | After the close of business on March 4, 2013, Large Cap Select liquidated all of its Class R3 Shares. |
Small Cap Select | ||||||||||||||||
Year Ended 10/31/13 | Year Ended 10/31/12 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,344,689 | $ | 31,242,890 | 3,405,459 | $ | 44,581,140 | ||||||||||
Class B – exchanges | 408 | 3,424 | 55 | 510 | ||||||||||||
Class C | 27,179 | 300,561 | 33,316 | 400,508 | ||||||||||||
Class R3 | 443,783 | 5,660,311 | 362,918 | 4,572,748 | ||||||||||||
Class I | 3,097,591 | 45,423,193 | 3,848,641 | 54,450,626 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 2,079,011 | 23,825,468 | 555,168 | 6,578,745 | ||||||||||||
Class B | 45,369 | 380,192 | 8,774 | 81,068 | ||||||||||||
Class C | 163,836 | 1,636,719 | 31,587 | 336,407 | ||||||||||||
Class R3 | 260,032 | 2,881,156 | 42,049 | 485,669 | ||||||||||||
Class I | 2,444,971 | 31,148,931 | 369,469 | 4,780,926 | ||||||||||||
10,906,869 | 142,502,845 | 8,657,436 | 116,268,347 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (5,160,326 | ) | (68,844,204 | ) | (14,663,335 | ) | (201,595,961 | ) | ||||||||
Class B | (94,177 | ) | (908,276 | ) | (108,436 | ) | (1,128,129 | ) | ||||||||
Class C | (228,432 | ) | (2,624,713 | ) | (482,065 | ) | (5,720,510 | ) | ||||||||
Class R3 | (741,925 | ) | (9,510,031 | ) | (661,413 | ) | (8,291,187 | ) | ||||||||
Class I | (6,294,437 | ) | (92,944,448 | ) | (6,784,819 | ) | (96,961,259 | ) | ||||||||
(12,519,297 | ) | (174,831,672 | ) | (22,700,068 | ) | (313,697,046 | ) | |||||||||
Net increase (decrease) | (1,612,428 | ) | $ | (32,328,827 | ) | (14,042,632 | ) | $ | (197,428,699 | ) |
Nuveen Investments | 43 |
Notes to Financial Statements (continued)
Class B Shares that converted to Class A Shares (recognized as a component of Class A Shares sold and Class B Shares redeemed) during the fiscal years ended October 31, 2013 and October 31, 2012, were as follows:
Fund | Year Ended 10/31/13 | Year Ended 10/31/12 | ||||||
Small Cap Select | 15,744 | 83,248 |
5. Investment Transactions
Purchases and sales (excluding investments purchased with collateral from securities lending and short-term investments, where applicable) during the fiscal year ended October 31, 2013, were as follows:
Large Cap Select | Small Cap Select | |||||||
Purchases | $ | 43,548,595 | $ | 349,802,353 | ||||
Sales | 51,715,013 | 447,745,428 |
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.
As of October 31, 2013, the cost and unrealized appreciation (depreciation) of investments as determined on a federal income tax basis, were as follows:
Large Cap Select | Small Cap Select | |||||||
Cost of investments | $ | 39,579,698 | $ | 431,336,128 | ||||
Gross unrealized: | ||||||||
Appreciation | $ | 7,017,541 | $ | 118,527,886 | ||||
Depreciation | (243,206 | ) | (8,275,798 | ) | ||||
Net unrealized appreciation (depreciation) of investments | $ | 6,774,335 | $ | 110,252,088 |
Permanent differences, primarily due to net operating losses, tax equalization, litigation proceeds and REIT adjustments, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2013, the Funds’ tax year end, as follows:
Large Cap Select | Small Cap Select | |||||||
Capital paid-in | $ | (9 | ) | $ | (94,882 | ) | ||
Undistributed (Over-distribution of) net investment income | — | 757,484 | ||||||
Accumulated net realized gain (loss) | 9 | (662,602 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2013, the Funds’ tax year end, were as follows:
Large Cap Select | Small Cap Select | |||||||
Undistributed net ordinary income1 | $ | 189,155 | $ | 8,937,418 | ||||
Undistributed net long-term capital gains | — | 30,487,550 |
1 Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any.
44 | Nuveen Investments |
The tax character of distributions paid during the Funds’ tax years ended October 31, 2013 and October 31, 2012, was designated for purposes of the dividends paid deduction as follows:
2013 | Large Cap Select | Small Cap Select | ||||||
Distributions from net ordinary income1 | $ | 248,726 | $ | 11,605,768 | ||||
Distributions from net long-term capital gains2 | — | 54,954,814 |
2012 | Large Cap Select | Small Cap Select | ||||||
Distributions from net ordinary income1 | $ | 49,038 | $ | — | ||||
Distributions from net long-term capital gains | — | 13,456,984 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
2 | The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2013. |
As of October 31, 2013, the Funds’ tax year end, the following Fund had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by a Fund, while the losses subject to expiration are considered short-term.
Large Cap Select | ||||
Expiration: | ||||
October 31, 2016 | $ | 9,711,965 | ||
October 31, 2017 | 54,315,490 | |||
Not subject to expiration: | ||||
Short-term losses | — | |||
Long-term losses | — | |||
Total | $ | 64,027,455 |
During the Funds’ tax year ended October 31, 2013, the following Fund utilized capital loss carryforwards as follows:
Large Cap Select | ||||
Utilized capital loss carryforwards | $ | 6,736,107 |
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 | Large Cap Select Fund-Level Fee Rate | Small Cap Select Fund-Level Fee Rate | ||||||
For the first $125 million | .5500 | % | .7000 | % | ||||
For the next $125 million | .5375 | .6875 | ||||||
For the next $250 million | .5250 | .6750 | ||||||
For the next $500 million | .5125 | .6625 | ||||||
For the next $1 billion | .5000 | .6500 | ||||||
For net assets over $2 billion | .4750 | .6250 |
Nuveen Investments | 45 |
Notes to Financial Statements (continued)
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 certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of October 31, 2013, the complex-level fee rate for each of these Funds was as follows: |
Fund | Complex-Level Fee Rate | |||
Large Cap Select | .2000% | |||
Small Cap Select | .2000 |
The Adviser agreed to reimburse management fees across all share classes of Large Cap Select and Small Cap Select through December 31, 2012, to the extent necessary to maintain Class I Share total annual operating expenses, not including any acquired fund fees and expenses, at the applicable percentage of daily net assets listed in the Maximum Expense Level row of the following table, provided that in no event will the Adviser be required to make any reimbursements that would result in an annualized net management fee of less than the applicable percentage of daily net assets listed in the Minimum Management Fee row of the following table.
Large Cap Select | Small Cap Select | |||||||
Maximum Expense Level | 1.13 | % | 1.00% | |||||
Minimum Management Fee | .75 | .80 |
Effective August 1, 2013, the Adviser has contractually agreed to waive fees and/or reimburse other Fund expenses of Large Cap Select so that total annual Fund operating expenses, after fee waivers and/or expense reimbursements and excluding acquired fund fees and expenses, do not exceed the percentage of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table:
Large Cap Select | Temporary Expense Cap | Temporary Expense Cap Expiration Date | ||||||
Class A Shares | 1.30 | % | October 31, 2015 | |||||
Class C Shares | 2.05 | October 31, 2015 | ||||||
Class I Shares | 1.05 | October 31, 2015 |
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.
46 | Nuveen Investments |
During the fiscal year ended October 31, 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:
Large Cap Select | Small Cap Select | |||||||
Sales charges collected (Unaudited) | $ | 12,538 | $ | 38,419 | ||||
Paid to financial intermediaries (Unaudited) | 11,025 | 33,648 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the fiscal year ended October 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Large Cap Select | Small Cap Select | |||||||
Commission advances (Unaudited) | $ | 200 | $ | 2,485 |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class B Shares and Class C Shares during the first year following a purchase were retained by the Distributor. During the fiscal year ended October 31, 2013, the Distributor retained such 12b-1 fees as follows:
Large Cap Select | Small Cap Select | |||||||
12b-1 fees retained (Unaudited) | $ | 281 | $ | 16,433 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended October 31, 2013, as follows:
Large Cap Select | Small Cap Select | |||||||
CDSC retained (Unaudited) | $ | — | $ | 3,271 |
8. New Accounting Pronouncements
Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities
In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.
Nuveen Investments | 47 |
Trustees and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 206 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 206 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 206 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 206 | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company; (2006-2013) retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 206 |
48 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Chairman of the Board of Trustees of Marian University (since 2010 as trustee, 2011 as Chairman); Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 206 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 206 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) and CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 206 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 206 | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 206 |
Nuveen Investments | 49 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Interested Board Members: | ||||||||
William Adams IV(2) 1955 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Senior Executive Vice President, Global Structured Products (since 2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda’s Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | 135 | ||||
Thomas S. Schreier, Jr.(2) 1962 333 W. Wacker Drive Chicago, IL 60606 | Board Member | 2013 | Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman’s Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010). | 135 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 206 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 206 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 206 | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Senior Vice President (2010-2011), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Senior Vice President (since 2013), formerly, Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant. | 206 |
50 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 206 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 206 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 206 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 206 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 206 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 206 | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 103 |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
Nuveen Investments | 51 |
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 “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (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 Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser 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 Adviser’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 Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’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 Adviser with questions and the Adviser 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 Adviser and the Sub-Adviser. 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 Adviser 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 Adviser 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 Adviser. 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 Adviser 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-adviser 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-Adviser’s investment teams in Minneapolis in September 2012, and its 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.
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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.
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 Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’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 Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser 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-Adviser’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-Adviser 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 Adviser’s execution of its oversight responsibilities over the Sub-Adviser. 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 Adviser’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 Adviser 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 Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’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 Adviser’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 Adviser 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 Adviser, 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 Adviser 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 Adviser’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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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., generally 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. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
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 Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds 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 Adviser 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 Large Cap Select Fund (the “Large Cap Fund”) demonstrated generally favorable performance in comparison to peers and that although such Fund was in the third quartile for the five-year period, it performed in the second quartile for the three-year period and the first quartile for the one-year period and outperformed its benchmark for the one-year period. In addition, the Independent Board Members noted that the Nuveen Small Cap Select Fund (the “Small Cap Fund”) lagged its peers somewhat in the shorter periods, but demonstrated more favorable performance in the longer periods. In this regard, they noted that although the Small Cap Fund was in the third quartile and underperformed its benchmark for the one- and three-year periods, such Fund was in the second quartile and outperformed its benchmark for the five-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 ratio 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.
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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 Small Cap Fund had a net management fee and a net expense ratio (including fee waivers and expense reimbursements) that were below its peer averages. In addition, the Independent Board Members recognized that the Large Cap Fund had a higher net management fee and net expense ratio compared to its peer average. In this regard, the Independent Board Members observed that although such Fund’s gross management fee was below its peer group average, its net management fee was higher than its peer average due to differences in fee waivers between such Fund and its peer group average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser 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 Adviser are not required for institutional clients. The Independent Board Members further noted that the management fee rates of the foreign funds advised by the Adviser 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).
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
In reviewing profitability, the Independent Board Members recognized the Adviser’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 Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’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.
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 Adviser, 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
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managing the assets of the Funds and other clients. The Funds’ portfolio transactions are determined by the Sub-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’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.
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Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Beta: A measure of the variability of the change in the share price for a fund in relation to a change in the value of the fund’s market benchmark. Securities with betas higher than 1.0 have been, and are expected to be, more volatile than the benchmark; securities with betas lower than 1.0 have been, and are expected to be, less volatile than the benchmark.
Dow Jones Industrial Average Index: A price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange. The 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 Large-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core 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 Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Market Capitalization: The market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
MSCI EAFE Index: The MSCI (Morgan Stanley Capital International) EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Emerging Markets Index: An unmanaged index considered representative of stocks of developing countries. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI Japan Index: A capitalization-weighted index, adjusted for free float. The index is designed to reflect the sectoral diversity of the Japanese equity markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The index returns assume reinvestment of 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. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Fund | % of DRD | % of QDI | ||||||
Nuveen Large Cap Select Fund | 90.00 | % | 100.00 | % | ||||
Nuveen Small Cap Select Fund | 13.00 | % | 13.00 | % |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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.
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The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program. |
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Serving Investors for Generations | ||||||||||||||
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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.
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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 $215 billion as of September 30, 2013. | ||||||||||||||
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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
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Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MAN-FSLCT-1013P
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/MutualFunds/ShareholderResources/FundGovernance.aspx. (To view the code, click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Directors determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial expert is Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Funds’ auditor, billed to the Funds’ during the Funds’ last two full fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Funds, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The preapproval exception for services provided directly to the Funds waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Funds during the fiscal year in which the services are provided; (B) the Funds did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE AUDITOR BILLED TO THE FUNDS
Fiscal Year Ended October 31, 2013 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 18,201 | 1,000 | 7,200 | 0 | ||||||||||||
Nuveen Equity Index Fund | 15,081 | 0 | 3,500 | 0 | ||||||||||||
Nuveen International Select Fund | 17,318 | 0 | 38,652 | 0 | ||||||||||||
Nuveen Large Cap Growth Opportunities Fund | 14,330 | 0 | 3,500 | 0 | ||||||||||||
Nuveen Large Cap Select Fund | 12,079 | 0 | 2,500 | 0 | ||||||||||||
Nuveen Mid Cap Growth Opportunities Fund | 16,663 | 0 | 3,500 | 0 | ||||||||||||
Nuveen Mid Cap Index Fund | 13,910 | 0 | 5,001 | 0 | ||||||||||||
Nuveen Mid Cap Value Fund | 12,524 | 0 | 2,625 | 0 | ||||||||||||
Nuveen Small Cap Growth Opportunities Fund | 12,282 | 0 | 3,500 | 0 | ||||||||||||
Nuveen Small Cap Index Fund | 12,337 | 0 | 7,377 | 0 | ||||||||||||
Nuveen Small Cap Select Fund | 13,823 | 0 | 3,688 | 0 | ||||||||||||
Nuveen Small Cap Value Fund | 12,277 | 0 | 2,813 | 0 | ||||||||||||
Nuveen Tactical Market Opportunities Fund | 12,952 | 0 | 2,500 | 0 | ||||||||||||
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|
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|
|
|
|
| |||||||||
Total | $ | 183,778 | $ | 1,000 | $ | 86,356 | $ | 0 |
1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Equity Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen International Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Large Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Large Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Tactical Market Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % |
Fiscal Year Ended October 31, 2012 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 16,667 | 0 | 0 | 0 | ||||||||||||
Nuveen Equity Index Fund | 14,613 | 0 | 0 | 0 | ||||||||||||
Nuveen International Select Fund | 17,078 | 0 | 31,145 | 0 | ||||||||||||
Nuveen Large Cap Growth Opportunities Fund | 13,850 | 0 | 0 | 0 | ||||||||||||
Nuveen Large Cap Select Fund | 11,411 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Growth Opportunities Fund | 16,326 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Index Fund | 12,776 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Value Fund | 12,186 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Growth Opportunities Fund | 11,695 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Index Fund | 11,552 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Select Fund | 14,065 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Value Fund | 11,620 | 0 | 0 | 0 | ||||||||||||
Nuveen Tactical Market Opportunities Fund | 11,916 | 0 | 0 | 0 | ||||||||||||
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|
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|
|
| |||||||||
Total | $ | 175,755 | $ | 0 | $ | 31,145 | $ | 0 |
1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Equity Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen International Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Large Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Large Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Mid Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Growth Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Index Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Select Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Small Cap Value Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Tactical Market Opportunities Fund | 0 | % | 0 | % | 0 | % | 0 | % |
Fiscal Year Ended October 31, 2013 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Funds, Inc. | $ | 0 | $ | 0 | $ | 0 | ||||||
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
Audit-Related Fees | Tax Fees Billed to | All Other Fees | ||||||||||
Billed to Adviser and | Adviser and | Billed to Adviser | ||||||||||
Affiliated Fund | Affiliated Fund | and Affiliated Fund | ||||||||||
Service Providers | Service Providers | Service Providers | ||||||||||
0 | % | 0 | % | 0 | % | |||||||
Fiscal Year Ended October 31, 2012 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Funds, Inc. | $ | 0 | $ | 0 | $ | 0 |
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | ||||||||||
0 | % | 0 | % | 0 | % |
Total Non-Audit Fees | ||||||||||||||||
billed to Adviser and | ||||||||||||||||
Affiliated Fund Service | Total Non-Audit Fees | |||||||||||||||
Providers (engagements | billed to Adviser and | |||||||||||||||
related directly to the | Affiliated Fund Service | |||||||||||||||
Fiscal Year Ended October 31, 2013 | Total Non-Audit Fees Billed to Funds | operations and financial reporting of the Funds) | Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 7,200 | 0 | 0 | 7,200 | ||||||||||||
Nuveen Equity Index Fund | 3,500 | 0 | 0 | 3,500 | ||||||||||||
Nuveen International Select Fund | 38,652 | 0 | 0 | 38,652 | ||||||||||||
Nuveen Large Cap Growth Opportunities Fund | 3,500 | 0 | 0 | 3,500 | ||||||||||||
Nuveen Large Cap Select Fund | 2,500 | 0 | 0 | 2,500 | ||||||||||||
Nuveen Mid Cap Growth Opportunities Fund | 3,500 | 0 | 0 | 3,500 | ||||||||||||
Nuveen Mid Cap Index Fund | 5,001 | 0 | 0 | 5,001 | ||||||||||||
Nuveen Mid Cap Value Fund | 2,625 | 0 | 0 | 2,625 | ||||||||||||
Nuveen Small Cap Growth Opportunities Fund | 3,500 | 0 | 0 | 3,500 | ||||||||||||
Nuveen Small Cap Index Fund | 7,377 | 0 | 0 | 7,377 | ||||||||||||
Nuveen Small Cap Select Fund | 3,688 | 0 | 0 | 3,688 | ||||||||||||
Nuveen Small Cap Value Fund | 2,813 | 0 | 0 | 2,813 | ||||||||||||
Nuveen Tactical Market Opportunities Fund | 2,500 | 0 | 0 | 2,500 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 86,356 | $ | 0 | $ | 0 | $ | 86,356 |
“Total Non-Audit Fees billed to Funds” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to the Funds in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
Total Non-Audit Fees | ||||||||||||||||
billed to Adviser and | ||||||||||||||||
Affiliated Fund Service | Total Non-Audit Fees | |||||||||||||||
Providers (engagements | billed to Adviser and | |||||||||||||||
related directly to the | Affiliated Fund Service | |||||||||||||||
Fiscal Year Ended October 31, 2012 | Total Non-Audit Fees Billed to Funds | operations and financial reporting of the Funds) | Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Dividend Value Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Equity Index Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen International Select Fund | 31,145 | 0 | 0 | 31,145 | ||||||||||||
Nuveen Large Cap Growth Opportunities Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Large Cap Select Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Growth Opportunities Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Index Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Mid Cap Value Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Growth Opportunities Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Index Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Select Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Small Cap Value Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Tactical Market Opportunities Fund | 0 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 31,145 | $ | 0 | $ | 0 | $ | 31,145 |
“Total Non-Audit Fees billed to Funds” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to the Funds in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Funds by the Funds’ independent accountant and (ii) all audit and non-audit services to be performed by the Funds’ independent accountant for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Funds. Regarding tax and research projects conducted by the independent accountant for the Funds and Affiliated Fund Service Providers (with respect to operations and financial reports of the Trust), such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee Chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) | See Portfolio of Investments in Item 1. |
b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to this registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/MutualFunds/ShareholderResources/FundGovernance.aspx and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.) | |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto. | |
(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant. | |
(b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Funds, Inc.
By (Signature and Title)
| /s/ Kevin J. McCarthy | |
Kevin J. McCarthy | ||
Vice President and Secretary |
Date: January 6, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
| /s/ Gifford R. Zimmerman | |
Gifford R. Zimmerman | ||
Chief Administrative Officer | ||
(principal executive officer) |
Date: January 6, 2014
By (Signature and Title) | /s/ Stephen D. Foy | |
Stephen D. Foy | ||
Vice President and Controller | ||
(principal financial officer) |
Date: January 6, 2014