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: June 30
Date of reporting period: December 31, 2015
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 Income Funds |
| Semi-Annual Report December 31, 2015 |
Share Class / Ticker Symbol | ||||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||||||||
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Nuveen Core Bond Fund | FAIIX | NTIBX | — | NTIFX | FINIX | |||||||||||
Nuveen Core Plus Bond Fund | FAFIX | FFAIX | FFISX | FPCFX | FFIIX | |||||||||||
Nuveen Inflation Protected Securities Fund | FAIPX | FCIPX | FRIPX | FISFX | FYIPX | |||||||||||
Nuveen Intermediate Government Bond Fund | FIGAX | FYGCX | FYGRX | — | FYGYX | |||||||||||
Nuveen Short Term Bond Fund | FALTX | FBSCX | NSSRX | NSSFX | FLTIX |
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NOT FDIC INSURED MAY LOSE VALUE | |||||||||||
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Nuveen Investments | 3 |
to Shareholders
Dear Shareholders,
For better or for worse, the financial markets spent most of the past year waiting for the U.S. Federal Reserve (Fed) to end its accommodative monetary policy. The policy has propped up stock and bond markets since the Great Recession, but the question remains: how will markets behave without its influence? This uncertainty was a considerable source of volatility for stock and bond prices for much of 2015, despite the Fed carefully conveying its intention to raise rates slowly and only when the economy shows evidence of readiness.
As was widely expected, the long-awaited Fed rate hike materialized in mid-December. While the move was interpreted as a vote of confidence on the U.S. economy’s underlying strength, the Fed emphasized that future rate increases will be gradual and guided by its ongoing assessment of financial conditions. Headwinds including rising borrowing costs, softer commodity prices, low inflation, a strong U.S. dollar and a stagnant global economy could necessitate keeping monetary conditions accommodative for longer. Meanwhile, policy makers in Europe and Japan are deploying their available tools to try to bolster their economies’ fragile growth, while Chinese authorities have stepped up efforts to manage China’s slowdown.
Although the new year began with a more pessimistic tone to investor sentiment and elevated volatility in the markets, we caution investors from making long-term decisions based on short-term news. In times like these, you can look to a professional investment manager with the experience and discipline to maintain the proper perspective on short-term events. And if the daily headlines do concern you, I encourage you to reach out to your financial advisor. Your financial advisor can help you evaluate your investment strategies in light of current events, your time horizon and risk tolerance.
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
February 22, 2016
4 | Nuveen Investments |
Comments
Nuveen Core Bond Fund
Nuveen Core Plus Bond Fund
Nuveen Inflation Protected Securities Fund
Nuveen Intermediate Government Bond Fund
Nuveen Short Term Bond Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments, Inc. In this report, the various portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended December 31, 2015. These management teams include:
Nuveen Core Bond Fund
Wan-Chong Kung, CFA, has managed the Fund since 2002 and Jeffrey J. Ebert since 2000. Chris J. Neuharth joined the Fund as a co-portfolio manager in 2012.
Nuveen Core Plus Bond Fund
Chris J. Neuharth has managed the Fund since 2006. Timothy A. Palmer, CFA, Wan-Chong Kung, CFA, and Jeffrey J. Ebert have been part of the management team for the Fund since 2003, 2001, and 2005, respectively.
Nuveen Inflation Protected Securities Fund
Wan-Chong Kung, CFA, has managed the Fund since its inception in 2004 and Chad W. Kemper joined the Fund as a co-portfolio manager in 2010.
Nuveen Intermediate Government Bond Fund
Wan-Chong Kung, CFA, has managed the Fund since 2002. Chris J. Neuharth and Jason J. O’Brien, CFA, have been on the Fund’s management team since 2009.
Nuveen Short Term Bond Fund
Chris J. Neuharth has been a co-portfolio manager of the Fund since 2004. Peter L. Agrimson, CFA, joined the Fund as a co-portfolio manager in 2011.
How did the Funds perform during the six-month reporting period ended December 31, 2015?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Funds for the six-month, one-year, five-year, ten-year and/or since inception periods ended December 31, 2015. Each Funds’ Class A Share total returns at net asset value (NAV) are compared with the performance of the appropriate Barclays Index and Lipper classification average. A more detailed account of each Fund’s performance is provided later in this report.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
What strategies were used to manage the Funds during the six-month reporting period and how did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics used previously, although implementation of those strategies depended on the individual characteristics of the portfolios, as well as market conditions. The Funds’ management teams use a highly collaborative, research-driven approach that we believe offers the best opportunity to achieve consistent, superior long-term performance on a risk-adjusted basis across the full range of market environments. During the reporting period, the Funds were generally positioned for an environment of continued moderate economic growth. Nonetheless, during the reporting period we made smaller scaled shifts on an ongoing basis that were geared toward improving each Fund’s profile in response to changing conditions and valuations. These strategic moves are discussed in more detail within each Fund’s section of this report.
Nuveen Core Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed the Barclays U.S. Aggregate Bond Index and the Lipper Core Bond Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Counties (OPECs) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy. Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the last three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened during the reporting period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened across all sectors as investors favored higher quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. In the investment grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative outlook changes for several issuers and exacerbating selling pressure in an already weak market. Merger and acquisition (M&A) related financing also took a toll on the technical backdrop as the market tried to absorb nearly $70 billion in M&A related issuance. Market technicals remained weak into the reporting period as dealers tried to keep inventory levels low and oil prices hit new lows. Given strong fundamentals, financials outperformed the industrial sector, which was weighed down by growth concerns. These worries also caused BBB rated credit issuers to significantly underperform A rated issuers.
Among the securitized sectors of the bond market, mortgage-backed securities (MBS) issued by government agencies such as Fannie Mae (FNMA), Ginnie Mae (GNMA) and Freddie Mac (FHLMC) performed well during the reporting period, posting positive excess returns versus Treasuries. Range-bound levels of implied volatility in the agency MBS segment were supportive from a fundamental perspective, while strong bank and money manager demand provided a solid technical backdrop. Homeowner refinancing activity was relatively subdued and MBS prepayments stabilized at historically low levels. The Fed implied that it will continue to re-invest MBS paydowns from its holdings until policy normalization is well under way, which gave investors comfort that technicals would remain favorable through much of 2016. Valuations were steady and investors embraced the combination of lower volatility and superior liquidity found in the agency MBS sector. Returns in the commercial mortgage-backed securities (CMBS) sector were lackluster during the reporting period as the segment underperformed Treasuries. Longer duration, newer vintage bonds struggled due to higher levels of new issuance and ongoing concerns about the quality of loans going into new deals. The valuation differential
6 | Nuveen Investments |
between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals. Traditional consumer asset-backed securities (ABS) generated positive excess returns over Treasuries as consumer credit trends remained favorable, although year-end balance sheet pressures and outflows from short duration funds did create some technical pressure on the sector. ABS issuance was light given tepid investor demand for short, high quality paper as the Fed began the process of normalizing policy.
The Fund lagged its comparative indexes during the six-month reporting period as many of our high level investment themes were challenged. We had positioned the Fund for trend-like economic growth, strong corporate performance and a Fed interest rate hike in September. In light of this outlook, we had maintained the Fund’s underweight to Treasuries and approximately 15% overweight in the investment grade credit sector. This sector positioning was a performance detractor because Treasuries significantly outperformed all other fixed income asset classes, while investment grade credit underperformed as concerns about global growth, commodities markets and possible Fed rate hikes drove spreads wider. Within the investment grade credit sector, security selection was also a drag on results due to our overweight position in energy and metals/mining names. These segments of the market experienced relentless selling pressure due to volatile commodity prices and a large amount of new issues. Also, our bias toward lower quality, BBB rated bonds worked against the Fund due to the significantly lower returns for ratings categories further down the quality spectrum. The one positive offsetting factor in our investment grade credit exposure was a large overweight to financials, which benefited relative returns within the sector.
Results from our interest rate strategy were modestly beneficial during the course of the reporting period. We entered the reporting period with the Fund positioned for the likelihood that short-term interest rates would increase more than long-term rates and that the yield curve would flatten as the Fed continued to normalize policy. Therefore, we had reduced the Fund’s exposure to short- and intermediate-duration securities and modestly overweighted securities at the longer end of the yield curve. This contributed favorably to the Fund’s performance during the reporting period as the shape of the yield curve did indeed flatten. At the same time, we had positioned the Fund to benefit from higher rates with a duration (interest rate sensitivity) that averaged around 0.25 years shorter than the benchmark. This was a modest detractor relative to the index, but not enough to offset the strongly positive effect of yield curve positioning.
In securitized sectors, the Fund maintained an overweight position in CMBS, which was a minor drag on results since excess returns in this sector were slightly negative. Generally speaking, the Fund was neutrally weighted to agency MBS, therefore, these positions were non-factors in terms of performance during the reporting period.
Over the course of the reporting period, we made several changes to the Fund’s structure in response to our shifting views or movements in valuations. Our interest rate strategy was little changed as we maintained the Fund’s defensive duration posture and positioning to benefit from a flatter yield curve. We modestly adjusted the Fund’s sector weights in response to shifting technicals and changing valuations. Early in the reporting period, as spreads on investment grade corporates widened in response to issuance and global uncertainty, we selectively added names in both the new issue and secondary markets, generally focusing on credits outside of the metals/mining sector. However, after the investment grade corporate sector recovered somewhat in October, we reduced overall exposure, primarily by paring individual position sizes to help reduce the Fund’s idiosyncratic risk. Also, as part of our ongoing credit surveillance, we sold a few names in response to the deteriorating fundamentals caused by renewed weakness in commodity prices. We kept the Fund’s securitized exposure relatively stable. Most activity in the agency MBS sector was bottom up in nature and related to maintaining risk in line with the benchmark. We also raised the Fund’s liquidity profile in November in anticipation of a more difficult trading environment around year-end.
In addition, we continued to utilize various derivative instruments in the Fund during the reporting period. We used Treasury note and bond futures to manage the Fund’s duration and yield curve exposure. To decrease the duration of the Fund’s portfolio, we established short Treasury bond or Treasury note futures positions. These derivative positions detracted from performance during the reporting period. We also used interest rate swaps as part of our portfolio construction strategy to manage the Fund’s duration and overall portfolio yield curve exposure. The interest rate swap positions detracted from performance during the reporting period. These contracts were terminated prior to the end of the reporting period.
Nuveen Core Plus Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed both the Barclays U.S. Aggregate Bond Index and the Lipper Core Plus Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience
Nuveen Investments | 7 |
Portfolio Managers’ Comments (continued)
in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy. Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the reporting period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the last three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened across all sectors as investors favored higher quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. In the investment grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative outlook changes for several issuers and exacerbating selling pressure in an already weak market. Merger and acquisition (M&A) related financing also took a toll on the technical backdrop as the market tried to absorb nearly $70 billion in M&A related issuance. Market technicals remained weak into the reporting period as dealers tried to keep inventory levels low and oil prices hit new lows. Given strong fundamentals, financials outperformed the industrial sector, which was weighed down by growth concerns. These worries also caused BBB rated credit issuers to significantly underperform A rated issuers.
High yield bond prices came under extreme pressure as festering global growth concerns, the Fed’s mixed messages and accumulating sector specific issues weighed on confidence and led to a poor technical backdrop. A flight-to-quality ensued due to persistent commodity weakness and increased distress among lower rated issues. Energy bonds, which comprise approximately 13% of the market, continued to be pressured by falling crude prices. The weak global growth outlook also caused the headwinds in the commodity sector, with many base metal, iron ore and coal prices trading at multi-year lows. Elevated risks in the commodity sector curbed risk appetites and led to underperformance in the CCC rated credit space, which is more exposed to these cyclically weak areas. High yield spreads, which have been rising since mid-2014, ended the reporting period well above their historical average as a percentage of the 10-year Treasury yield, reflecting the extremely negative sentiment and investor outflows from the segment.
Among the securitized sectors of the bond market, mortgage-backed securities (MBS) issued by government agencies such as Fannie Mae (FNMA), Ginnie Mae (GNMA) and Freddie Mac (FHLMC) performed well during the reporting period, posting positive excess returns versus Treasuries. Range-bound levels of implied volatility in the agency MBS segment were supportive from a fundamental perspective, while strong bank and money manager demand provided a solid technical backdrop. Homeowner refinancing activity was relatively subdued and MBS prepayments stabilized at historically low levels. The Fed indicated that it will continue to re-invest MBS paydowns from its holdings until policy normalization is well under way, which gave investors comfort that technicals would remain favorable through much of 2016. Valuations were steady and investors embraced the combination of lower volatility and superior liquidity found in the agency MBS sector. Returns in the commercial mortgage-backed securities (CMBS) sector were lackluster during the reporting period as the segment underperformed Treasuries. Longer duration, newer vintage bonds struggled due to higher levels of new issuance and ongoing concerns about the quality of loans going into new deals. The valuation differential between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals. Traditional consumer asset-backed securities (ABS) generated excess returns over Treasuries as consumer credit trends remained favorable, although year-end balance sheet pressures and outflows from short duration funds did create some technical pressure on the sector. ABS issuance was light given tepid investor demand for short, high quality paper as the Fed began the process of normalizing policy.
8 | Nuveen Investments |
Non-U.S. interest rates and currencies took the Fed’s first move in stride, reacting moderately to prospects for a higher U.S. rate structure. A moderate message from the Fed, below trend global growth, the lack of inflation pressures and ongoing risk aversion in credit helped keep market rates in check. Europe and Japan, while posting reasonable growth data, continued to witness broadly disinflationary effects beyond energy, leading to meaningfully lower inflation expectations. After increased expectations earlier in the reporting period, the European Central Bank disappointed marginally by offering only an extension of its quantitative easing plan late in the year, but clearly left the door open for more. The Bank of Japan continued its waiting game in the midst of mixed economic data. China was an ongoing source of volatility after surprising the market with a currency devaluation in August. Most foreign markets marginally outperformed the U.S. and yield curves were flatter. While currencies were volatile during the period, the U.S. dollar generally appreciated versus most currencies. Emerging market (EM) currencies struggled with slow growth, declining commodity prices and reduced investor risk appetite. Developed currencies, such as the euro, fared better, but generally slipped on diverging monetary policies. The yen gained marginally amid global risk aversion and sluggish domestic activity.
A combination of sluggish global economic activity, low and volatile commodity prices and concerns about a Fed rate hike led to negative returns for EM debt. Mixed and decelerating data out of China continued to raise questions about the country’s growth and the resultant impact on the rest of the world. Political disarray, stagnant growth and currency weakness continued to plague Brazil, threatening further instability in this large EM player, while a surprise policy shift in South Africa exacerbated the volatility. In terms of regions, Latin America lagged, while Eastern Europe held in better given those countries’ proximity to the eurozone and better debt dynamics. Nearly all EM currencies declined, with central Europe faring better and Brazil, Russia and South Africa among the worst performers due to global as well as domestic challenges.
The volatile market environment and pressures on credit and economically sensitive sectors of the market drove the Fund’s shortfall versus the benchmark during the reporting period. Investment grade credit had the biggest negative impact on performance, due to both a significant overweight to the sector as well as our security selection and quality bias within the sector. Our overweights to cyclical credits and our lower quality bias/overweight BBB rated credits both detracted from performance. Also, the benefit of our large overweight to financials was more than offset by our smaller, but hard hit, positions in energy, metals and other cyclically-sensitive industries. On the other hand, our large weight in preferred securities, also in the financial sector, was beneficial to performance. However, our exposure to EM investment grade credit detracted from performance, particularly early in the reporting period.
The Fund’s substantial weighting in the high yield corporate sector was also a drag on results. We had maintained an allocation toward the high end of our policy range due to our view of moderate global growth and supportive credit fundamentals. Within high yield, our positioning in oil and cyclical credits contributed to the underperformance.
Away from credit, sector selection detracted modestly owing to the Fund’s underweight position in MBS. Also, foreign positions were a marginal detractor from performance. Our positions in foreign bonds detracted as spreads versus the U.S. more than offset yield advantages. However, foreign currency had little impact on the Fund’s performance over the period, largely due to light positioning. Interest rate positioning was a positive contributor to the Fund’s performance, driven by a flattening of the yield curve.
The Fund’s key sector themes continue to emphasize income generation driven primarily through diversified exposure to investment grade and high yield credit, in addition to other spread opportunities away from credit. We continue to underweight mortgage and structured assets, given better opportunities elsewhere. We also continue to allocate away from Treasury and agency securities as these offered unattractive duration and yield profiles. Although the credit sectors are still volatile and liquidity can occasionally be challenging, we continue to believe credit fundamentals remain solid in most segments, while valuations provide ample compensation for fundamental risk and market volatility. Accordingly, we maintained the Fund’s overweight in investment grade and high yield credit.
Activity during the reporting period was driven largely by repositioning credit exposure in response to fundamental credit developments, valuation changes and opportunities due to primary and secondary market activity. We continued to reevaluate credit fundamentals in light of changing market, economic and company specific developments. The Fund remained overweight to BBB rated companies within the investment grade sector. Although these credits have underperformed due to their higher economic sensitivity, we believe valuations have moved excessively and that yields are attractive in light of our fundamental outlook. We also maintained an overweight in financials. We continued to monitor developments in the energy sector very closely and assess the credit impact of developments in oil prices and energy fundamentals.
Nuveen Investments | 9 |
Portfolio Managers’ Comments (continued)
We reduced the Fund’s allocation to preferred securities toward the end of the reporting period. Although our outlook remains favorable for the sector, relative valuations had moved substantially versus alternatives; therefore, we chose to take advantage of market strength in preferreds to reduce the Fund’s weight in the segment. We also reduced foreign bond holdings during the period, given fundamental shifts in some markets and continued challenging fundamentals, particularly in emerging markets. We employed proceeds from these reductions toward moderate increases in mortgages, CMBS and investment grade financials, adding to portfolio liquidity at attractive valuations and providing for future flexibility.
Duration positioning remains defensive versus the benchmark, given the market’s adjustment following the Fed’s move, very limited inflationary pressures and the outlook for continued high levels of global liquidity and economic slack. The Fund remains biased toward a flatter yield curve.
During the reporting period, we also continued to utilize various derivative instruments. We used Treasury note and bond futures as part of an overall construction strategy to manage the Fund’s duration and yield curve exposure. These derivative positions detracted from performance during the reporting period. We also utilized interest rate swaps to manage portfolio duration and yield curve exposure, and these positions also detracted from performance.
We utilized forward foreign currency exchange contracts to manage the Fund’s foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from the Fund’s bond portfolio, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation. These positions had a positive impact on performance during the reporting period.
Nuveen Inflation Protected Securities Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed the Barclays U.S. TIPS Index and outperformed the Lipper Inflation-Protected Bond Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy. Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the last three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened during the period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened across all sectors as investors favored higher-quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. High yield bond prices came under extreme pressure as festering global growth concerns, the Fed’s mixed messages and accumulating sector specific issues weighed on confidence and led to a poor technical backdrop. Energy bonds, which comprise approximately 13% of the market, continued to be pressured by falling crude prices. The weak global growth outlook also caused the headwinds in the commodity sector, with many base metal, iron ore and coal prices trading at multi-year lows. Elevated risks in the commodity sector curbed risk appetites and led to underperformance in the CCC rated credit space, which is more exposed to these cyclically weak areas. High yield spreads, which have been rising since mid-2014, ended the reporting period well above their historical average as a percentage of the 10-year Treasury yield, reflecting the extremely negative sentiment and investor outflows from the segment.
10 | Nuveen Investments |
Returns in the commercial mortgage-backed securities (CMBS) sector were lackluster during the reporting period as the segment underperformed Treasuries. Longer duration, newer vintage bonds struggled due to higher levels of new issuance and ongoing concerns about the quality of loans going into new deals. The valuation differential between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals.
Early in the reporting period, forward looking inflation expectations revisited historic lows as realized inflation moved lower, oil prices resumed their decline and investors seemed indifferent to Treasury inflation protected securities (TIPS). July’s Consumer Price Index (CPI) report showed softer-than-historical seasonal prints, while the August CPI report also ushered in a negative outlook for inflation, earlier than historical seasonal declines. As the reporting period progressed, headline inflation remained weak in the face of rapidly declining energy prices, however, core inflation rose to 2.0% on a year-over-year basis in December as measured by the CPI excluding food and energy. The Fed’s rate liftoff in a low inflation environment caused yields on TIPS to rise, particularly at the short end of the yield curve, even as breakeven spreads mostly languished near multi-year lows. (Breakeven spreads measure the difference between the yields of nominal Treasuries versus TIPS with the same maturity.) Breakeven spreads increased more at the front end of the TIPS yield curve, leading to outperformance for shorter maturity TIPS. Later in the reporting period, investors returned to the asset class given the attractive valuations and with inflation expectations turning positive into the New Year. During the reporting period, TIPS turned in negative absolute returns as yields rose across the yield curve, underperforming nominal Treasuries.
In terms of performance during the reporting period, the Fund was aided by its shorter duration profile in its TIPS portfolio, which lowers its sensitivity to changing interest rates. Rates moved higher by between 17 and 43 basis points during the reporting period, but more so at the short to intermediate parts of the yield curve, as prices fell and the curve flattened. A longer duration profile for our nominal Treasury holdings was also helpful due to the outperformance of longer maturity Treasuries. In addition, the Fund’s performance received a boost from our breakeven positioning, which is designed to benefit from changing inflation expectations along the TIPS yield curve. A general underweight to the TIPS sector versus the Barclays U.S. TIPS Index also helped results as these securities underperformed nominal Treasuries.
However, these favorable results were offset by the Fund’s out-of-index exposures, particularly in high yield credit. As noted previously, high yield corporates were the worst-performing area of the bond market, significantly underperforming Treasuries and TIPS. While the Fund’s exposure to this asset class was fairly small, high yield bonds came under intense pressure during this extremely risk-averse period, exhibiting explosive volatility and impaired market liquidity.
Based on our improving outlook for inflation and the attractive valuations in the TIPS asset class, we built up the Fund’s TIPS exposure from approximately 80% of the portfolio at the beginning of the reporting period to 88% by the end of the reporting period. We continue to maintain small positions in high yield credit as well as CMBS, but will look for opportunistic trades to improve the profile of these exposures. From an overall perspective, we expect that credit sensitive spread sectors will remain volatile due to ongoing concerns about emerging market growth and difficult technicals. However, we believe that risk premiums are appropriately discounting this greater uncertainty and that investors are generally being fairly compensated for owning corporate bonds and non-government securitized product. We are maintaining the Fund’s strategically shorter duration profile, focused in the short to intermediate parts of the nominal Treasury curve, to keep it positioned more defensively than the benchmark in anticipation of rising rates. Along those same lines, we continue to position the portfolio to benefit from a flatter nominal Treasury yield curve, as we expect shorter-term rates to rise more than longer-term rates. At the same time, we have the Fund positioned to benefit from a flatter breakeven curve with shorter breakeven spreads expected to benefit from seasonally stronger inflation.
We also used Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. The overall effect of the positions on performance during the reporting period was negligible. We also used interest rate swaps to manage portfolio duration and yield curve exposure and these positions detracted from performance during the reporting period. These contracts were terminated prior to the end of the reporting period.
Nuveen Intermediate Government Bond Fund
The Fund’s Class A Shares at NAV underperformed both the Barclays Intermediate Government Bond Index and the Lipper Intermediate U.S. Government Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was
Nuveen Investments | 11 |
Portfolio Managers’ Comments (continued)
China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy. Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the reporting period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the last three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened during the reporting period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened dramatically across all sectors as investors favored higher quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds, particularly high yield, by a wide margin. Among the securitized sectors of the bond market, mortgage-backed securities (MBS) issued by government agencies such as Fannie Mae (FNMA), Ginnie Mae (GNMA) and Freddie Mac (FHLMC) performed well during the reporting period, posting positive excess returns versus Treasuries. Range-bound levels of implied volatility in the agency MBS segment were supportive from a fundamental perspective, while strong bank and money manager demand provided a solid technical backdrop. Homeowner refinancing activity was relatively subdued and MBS prepayments stabilized at historically low levels. The Fed implied that it will continue to re-invest MBS paydowns from its holdings until policy normalization is well under way, which gave investors comfort that technicals would remain favorable through much of 2016. Valuations were steady and investors embraced the combination of lower volatility and superior liquidity found in the agency MBS sector. Returns in the commercial mortgage-backed securities (CMBS) sector were lackluster during the period as the segment underperformed Treasuries. Longer duration, newer vintage bonds struggled due to higher levels of new issuance and ongoing concerns about the quality of loans going into new deals. The valuation differential between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals. Traditional consumer asset-backed securities (ABS) generated positive excess returns over Treasuries as consumer credit trends remained favorable, although year-end balance sheet pressures and outflows from short-duration funds did create some technical pressure on the sector. ABS issuance was light given tepid investor demand for short, high quality paper as the Fed began the process of normalizing policy.
Results from our interest rate strategy were modestly positive overall during the course of the reporting period. We entered the reporting period with the Fund positioned for the likelihood that short-term interest rates would rise more than long rates and that the yield curve would flatten as the Fed continued to normalize its policy. Therefore, throughout the reporting period, we maintained an underweight position in securities on the short end of the yield curve (out to five years) and added a corresponding overweight to ten- and twenty-year maturities. This contributed favorably to the Fund’s performance during the reporting period as the shape of the yield curve flattened. At the same time, the Fund was positioned defensively in terms of duration (interest rate sensitivity), which was a modest detractor relative to the index, but not enough to offset the strongly positive impact of yield curve positioning.
In the first half of the reporting period, the Fund’s sector strategies detracted from performance. Our overweight positions in several securitized sectors of the market and corresponding underweight to U.S. Treasuries proved detrimental to the Fund’s returns. In particular, the Fund’s overweight exposure to MBS had a negative impact on its results for the first half of the reporting period, while our positions in agency and non-agency CMBS securities also detracted from relative returns. The MBS sector recovered in the second half of the reporting period and was a solid positive contributor to performance. However, this was offset by some security selection in the ABS sector, which was a drag on performance. As a whole, the Fund’s sector strategies had a very small positive impact on performance in the second half of the reporting period.
In addition, we used Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s portfolio duration and yield curve exposure. The overall effect of these positions on performance during the reporting period was
12 | Nuveen Investments |
negligible. We also used interest rate swaps as part of our portfolio construction strategy to manage the Fund’s duration and overall portfolio yield curve exposure. The interest rate swap positions detracted from performance during the reporting period. These contracts were terminated prior to the end of the reporting period.
Nuveen Short Term Bond Fund
The Fund’s Class A Shares at NAV underperformed the Barclays 1-3 Year Government/Credit Bond Index, but performed in line with the Lipper Short Investment Grade Debt Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy. Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the reporting period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the final three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened during the period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries stayed about the same or fell modestly. For example, yields on two-year Treasuries rose by 36 basis points, while five-year Treasury rates were virtually unchanged at 11 basis points higher.
Spreads widened across all sectors as investors favored higher quality segments of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. In the investment-grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative outlook changes for several issuers and exacerbating selling pressure in an already weak market. A large amount of merger and acquisition related financing also took a toll on the technical backdrop. Market technicals remained weak into the reporting period as dealers tried to keep inventory levels low, which created stress across all segments of the corporate market. Although spreads seemed to be under pressure throughout the reporting period, short-duration investment grade credit managed to outperform Treasuries. Financial spreads remained steady and this sector outperformed industrials, which were challenged by commodity price volatility and heavy new issue supply. Short duration non-investment grade corporates performed poorly as the risks of slower global growth, lower commodity prices and a hawkish Fed pressured prices lower across the board, causing spreads to widen versus Treasuries.
After holding fairly steady for most of 2015, the commercial mortgage-backed securities (CMBS) sector lagged later in the reporting period due to increased supply and macro concerns, causing the sector to underperform Treasuries. The valuation differential between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals. Traditional consumer asset-backed securities (ABS) with shorter durations also did not generate excess returns over Treasuries. Ongoing concerns about subprime auto loan quality and the Volkswagen emissions scandal resulted in auto ABS lagging slightly. And while consumer credit trends remained favorable, year-end balance sheet pressures and outflows from short-duration funds created some technical pressure on the sector. ABS issuance was light given tepid investor demand for short, high quality paper as the Fed began the process of normalizing policy. Short maturity agency and non-agency mortgage-backed securities (MBS) performed well during the reporting period, posting positive excess returns versus Treasuries. The Fed hinted that it will continue to re-invest MBS pay downs from its holdings until policy normalization is well under way, which gave investors comfort that technicals would remain favorable through much of 2016. Loan delinquencies continued to decline and housing market fundamentals remained broadly supportive of the non-agency segments of the MBS market.
Nuveen Investments | 13 |
Portfolio Managers’ Comments (continued)
The Fund’s modest overweight to high yield corporate bonds was a detractor during the reporting period. Our high yield allocation, which represented approximately 5% of assets, was broadly diversified across industries and issuers in the BB and B rating credit categories. However, this exposure had a negative impact on the Fund’s performance due to the significant underperformance of risk assets during the reporting period.
We also maintained between a 35% and 40% position in investment grade corporates, or roughly a 5-10% overweight to the benchmark during the reporting period. Slightly more than half of our investment grade exposure was in the industrial sector, while slightly less than half was in financials, which were both overweight positions relative to the benchmark. The Fund’s financial holdings held up well throughout the reporting period’s volatile market environment, however, its industrial exposure was a detractor. While only a small amount of the Fund’s investment grade industrial exposure was in commodity-related sectors such as energy and metals/mining, our position still represented an overweight of about 1% versus the benchmark. This overweight was a drag on performance and roughly offset the positive impact of our financial overweight.
As always, the Fund maintained a strong focus on the securitized sectors, holding between 45% and 50% in residential MBS, CMBS and ABS product during the reporting period. Returns for these sectors were fairly lackluster during the reporting period, therefore, these exposures had no meaningful impact on overall performance.
On the other hand, our defensive interest rate posture was beneficial during the reporting period, offsetting the negative impact from the high yield sector. We had positioned the Fund defensively to limit its sensitivity to rising rates because we anticipated the Fed would begin to normalize monetary policy. This positioning included maintaining the Fund’s duration around 0.50 years short of the benchmark and with a bias toward a flatter yield curve. Due to the rise in rates during the reporting period, this stance benefited performance.
We made several changes to Fund’s structure during the reporting period. When interest rates rose after the Fed raised the target for the fed funds rate in December, we wanted the Fund’s duration to be marginally less defensive. Therefore, we increased the duration slightly to around 1.5 years. We kept the Fund’s sector allocations fairly steady with changes geared toward reducing the portfolio’s overall risk profile and increasing liquidity heading into the end of the reporting period. After the credit sectors showed a bout of strength midway through the period, we pared the Fund’s exposure to both investment grade and high yield corporates by 1-2%, increasing its allocation to Treasuries and boosting its cash levels in the process. Consistent with our desire to reduce overall portfolio risk, we focused on reducing the Fund’s exposure to the commodity-related sectors and increasing our issuer diversification in the credit sectors. We kept the Fund’s securitized exposure generally unchanged during the period, although we took the opportunity to reinvest maturities and cash flows in new issues in the mortgage-related sectors of the market. Given elevated levels of volatility, we continue to hold larger cash balances than normal. We are also focused on maintaining a strong liquidity profile for the Fund, due to ongoing concerns over the impact of Fed policy on the short end of the yield curve and fixed income markets in general.
During the reporting period, we also continued to utilize various derivative instruments. For example, we utilized Treasury note futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. The overall effect of these positions on the Fund’s performance during the reporting period was negligible. We also used interest rate swaps to manage Fund duration and yield curve exposure; these positions detracted from performance during the reporting period. These contracts were terminated prior to the end of the reporting period.
We utilized forward foreign currency exchange contracts to manage the Fund’s foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from the Fund’s bond portfolio, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation. These positions had a negligible impact on performance during the reporting period.
14 | Nuveen Investments |
and Dividend Information
Risk Considerations
Nuveen Core Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity, and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Core Plus Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Inflation Protected Securities Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, income risk, and index methodology risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. The guarantee provided by the U.S. government to treasury inflation protected securities (TIPS) relates only to the prompt payment of principal and interest and does not remove the market risks of investing in the Fund shares. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk, and adverse economic developments. The Fund’s investment in inflation protected securities has tax consequences that may result in income distributions to shareholders.
Nuveen Intermediate Government Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Short Term Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Investments | 15 |
Risk Considerations and Dividend Information (continued)
Dividend Information
Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
As of December 31, 2015, all of the Funds had positive UNII balances, based upon our best estimate, for tax purposes. Nuveen Core Plus Bond Fund had a positive UNII balance, while the other Funds had negative UNII balances for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report’s Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
16 | Nuveen Investments |
and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown within this section of the report.
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 fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information. 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, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at net asset value (NAV) only.
The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any) as shown in the most recent prospectus. The expense ratios include management fees and other fees and expenses.
Nuveen Investments | 17 |
Fund Performance and Expense Ratios (continued)
Nuveen Core Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (0.53)% | (1.27)% | 2.56% | 3.99% | ||||||||||||
Class A Shares at maximum Offering Price | (3.53)% | (4.19)% | 1.94% | 3.66% | ||||||||||||
Barclays U.S. Aggregate Bond Index | 0.65% | 0.55% | 3.25% | 4.51% | ||||||||||||
Lipper Core Bond Classification Average | (0.05)% | (0.07)% | 3.15% | 4.04% | ||||||||||||
Class I Shares | (0.41)% | (1.04)% | 2.78% | 4.17% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class C Shares | (0.92)% | (1.94)% | 1.72% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class R6 Shares | (0.45)% | (1.91)% |
Since inception return for Class C Shares is from 1/18/11. Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 3.00% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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 R6 Shares have no sales charge and are available only to certain limited categories 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
Share Class | ||||||||||||||||
Class A | Class C | Class R6 | Class I | |||||||||||||
Gross Expense Ratios | 0.85% | 1.61% | 0.56% | 0.59% | ||||||||||||
Net Expense Ratios | 0.78% | 1.53% | 0.48% | 0.53% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.53% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
18 | Nuveen Investments |
Nuveen Core Plus Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (2.89)% | (3.01)% | 3.03% | 4.25% | ||||||||||||
Class A Shares at maximum Offering Price | (7.02)% | (7.13)% | 2.15% | 3.80% | ||||||||||||
Barclays U.S. Aggregate Bond Index | 0.65% | 0.55% | 3.25% | 4.51% | ||||||||||||
Lipper Core Bond Plus Classification Average | (0.88)% | (0.82)% | 3.57% | 4.66% | ||||||||||||
Class C Shares | (3.29)% | (3.70)% | 2.27% | 3.47% | ||||||||||||
Class R3 Shares | (2.99)% | (3.20)% | 2.79% | 4.02% | ||||||||||||
Class I Shares | (2.85)% | (2.75)% | 3.29% | 4.51% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class R6 Shares | (2.75)% | (3.04)% |
Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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 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
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.85% | 1.60% | 1.10% | 0.54% | 0.60% | |||||||||||||||
Net Expense Ratios | 0.77% | 1.52% | 1.02% | 0.46% | 0.52% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.52% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
Nuveen Investments | 19 |
Fund Performance and Expense Ratios (continued)
Nuveen Inflation Protected Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (2.38)% | (2.38)% | 2.11% | 3.48% | ||||||||||||
Class A Shares at maximum Offering Price | (6.49)% | (6.57)% | 1.24% | 3.03% | ||||||||||||
Barclays U.S. TIPS Index | (1.78)% | (1.44)% | 2.55% | 3.93% | ||||||||||||
Lipper Inflation-Protected Bond Funds Classification Average | (2.53)% | (2.45)% | 1.59% | 3.02% | ||||||||||||
Class C Shares | (2.77)% | (3.10)% | 1.48% | 2.75% | ||||||||||||
Class R3 Shares | (2.49)% | (2.69)% | 1.85% | 3.15% | ||||||||||||
Class I Shares | (2.27)% | (2.07)% | 2.49% | 3.77% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class R6 Shares | (2.18)% | 3.54% |
Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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 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
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.92% | 1.66% | 1.15% | 0.52% | 0.66% | |||||||||||||||
Net Expense Ratios | 0.83% | 1.58% | 1.08% | 0.41% | 0.58% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.60% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
20 | Nuveen Investments |
Nuveen Intermediate Government Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 0.16% | 0.21% | 1.64% | 3.30% | ||||||||||||
Class A Shares at maximum Offering Price | (2.82)% | (2.76)% | 1.02% | 2.98% | ||||||||||||
Barclays Intermediate Government Bond Index | 0.36% | 1.18% | 2.02% | 3.71% | ||||||||||||
Lipper Intermediate U.S. Government Funds Classification Average | 0.45% | 0.57% | 2.13% | 3.46% | ||||||||||||
Class I Shares | 0.18% | 0.37% | 1.86% | 3.48% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | (0.33)% | (0.64)% | 0.85% | 1.28% | ||||||||||||
Class R3 Shares | 0.02% | (0.06)% | 1.37% | 1.78% |
Since inception returns for Class C and Class R3 Shares are from 10/28/09. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 3.00% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Gross Expense Ratios | 1.02% | 1.77% | 1.27% | 0.77% | ||||||||||||
Net Expense Ratios | 0.85% | 1.60% | 1.10% | 0.60% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed expenses) do not exceed 0.60% of the average daily net assets of any class of Fund shares. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
Nuveen Investments | 21 |
Fund Performance and Expense Ratios (continued)
Nuveen Short Term Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (0.47)% | 0.36% | 1.55% | 2.82% | ||||||||||||
Class A Shares at maximum Offering Price | (2.72)% | (1.92)% | 1.09% | 2.58% | ||||||||||||
Barclays 1-3 Year Government/Credit Bond Index | (0.07)% | 0.65% | 0.98% | 2.74% | ||||||||||||
Lipper Short Investment Grade Debt Funds Classification Average | (0.44)% | 0.24% | 1.33% | 2.52% | ||||||||||||
Class I Shares | (0.34)% | 0.60% | 1.78% | 3.02% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | (0.95)% | (0.43)% | 0.75% | 1.10% | ||||||||||||
Class R3 Shares | (0.72)% | (0.05)% | N/A | 1.56% |
Cumulative | ||||||||||||
6-Month | Since Inception | |||||||||||
Class R6 Shares | (0.34)% | 0.61% |
Since inception return for Class C Shares, Class R3 Shares and Class R6 Shares are from 10/28/09, 9/23/11 and 1/20/15, respectively. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 2.25% sales charge (Offering Price). Class A Share purchases of $250,000 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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 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
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.73% | 1.48% | 0.98% | 0.46% | 0.48% | |||||||||||||||
Net Expense Ratios | 0.71% | 1.46% | 0.96% | 0.43% | 0.46% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016 so that total annual fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.47% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
N/A | Not applicable. |
22 | Nuveen Investments |
THIS PAGE INTENTIONALLY LEFT BLANK
Nuveen Investments | 23 |
Yields as of December 31, 2015
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the Fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. Refer to the Fund Performance and Expense Ratios page for further details on the investment adviser’s most recent agreement with the Fund to waive fees and/or reimburse expenses, where applicable. Dividend Yield may differ from the SEC 30-Day Yield because the fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
Nuveen Core Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R6 | Class I | |||||||||||||
Dividend Yield | 2.51% | 1.80% | 2.83% | 2.85% | ||||||||||||
SEC 30-Day Yield-Subsidized | 2.48% | 1.81% | 2.81% | 2.81% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.40% | 1.72% | 2.75% | 2.74% |
Nuveen Core Plus Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 3.92% | 3.33% | 3.86% | 4.37% | 4.39% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 4.15% | 3.57% | 4.08% | 4.60% | 4.58% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 4.05% | 3.49% | 3.94% | 4.53% | 4.50% |
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
SEC 30-Day Yield-Subsidized | 4.07% | 3.49% | 3.97% | 4.84% | 4.48% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 3.90% | 3.29% | 3.71% | 4.55% | 4.32% |
Nuveen Intermediate Government Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 1.13% | 0.41% | 0.78% | 1.44% | ||||||||||||
SEC 30-Day Yield-Subsidized | 1.27% | 0.57% | 1.02% | 1.56% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 1.15% | 0.44% | 0.90% | 1.43% |
1 | The SEC Yield for Class A Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
24 | Nuveen Investments |
Nuveen Short Term Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 1.55% | 0.79% | 1.28% | 1.83% | 1.83% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 1.79% | 1.09% | 1.59% | 2.12% | 2.08% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 1.74% | 1.04% | 1.57% | 2.07% | 2.04% |
1 | The SEC Yield for Class A Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
Nuveen Investments | 25 |
Summaries as of December 31, 2015
This data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Nuveen Core Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 43.3% | |||
$1,000 Par (or similar) Institutional Preferred | 0.3% | |||
Municipal Bonds | 0.8% | |||
U.S. Government and Agency Obligations | 10.2% | |||
Asset-Backed and Mortgage-Backed Securities | 40.8% | |||
Sovereign Debt | 0.7% | |||
Investments Purchased with Collateral from Securities Lending | 4.7% | |||
Money Market Funds | 6.3% | |||
Other Assets Less Liabilities | (7.1)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bond holdings)
Banks | 13.3% | |||
Media | 9.7% | |||
Capital Markets | 7.9% | |||
Health Care Providers & Services | 7.2% | |||
Oil, Gas, & Consumable Fuels | 6.3% | |||
Diversified Telecommunication Services | 5.9% | |||
Insurance | 5.7% | |||
Real Estate Investment Trust | 4.8% | |||
Metals & Mining | 3.8% | |||
Energy Equipment & Services | 3.1% | |||
Food & Staples Retailing | 3.0% | |||
Health Care Equipment & Supplies | 2.5% | |||
Diversified Financial Services | 2.3% | |||
Specialty Retail | 2.1% | |||
Beverages | 1.9% | |||
Biotechnology | 1.9% | |||
Other | 18.6% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)1
AAA/U.S. Guaranteed | 48.9% | |||
AA | 5.6% | |||
A | 23.9% | |||
BBB | 21.5% | |||
N/R (not rated) | 0.1% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
26 | Nuveen Investments |
Nuveen Core Plus Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 62.7% | |||
$1,000 Par (or similar) Institutional Preferred | 4.9% | |||
U.S. Government and Agency Obligations | 0.0% | |||
Asset-Backed and Mortgage-Backed Securities | 28.9% | |||
Sovereign Debt | 2.7% | |||
Investments Purchased with Collateral from Securities Lending | 9.3% | |||
Money Market Funds | 5.8% | |||
Other Assets Less Liabilities | (14.3)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bonds
holdings)
Banks | 16.8% | |||
Oil, Gas & Consumable Fuels | 9.6% | |||
Media | 9.0% | |||
Metals & Mining | 5.3% | |||
Real Estate Investment Trust | 5.1% | |||
Diversified Telecommunication Services | 4.6% | |||
Capital Markets | 4.5% | |||
Chemicals | 3.8% | |||
Energy Equipment & Services | 3.4% | |||
Consumer Finance | 2.9% | |||
Insurance | 2.6% | |||
Diversified Financial Services | 2.6% | |||
Aerospace & Defense | 2.1% | |||
Machinery | 2.0% | |||
Software | 1.8% | |||
Food Products | 1.6% | |||
Wireless Telecommunication Services | 1.5% | |||
Building Products | 1.5% | |||
Other | 19.3% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term investments)1
AAA/U.S. Guaranteed | 19.6% | |||
AA | 3.5% | |||
A | 23.8% | |||
BBB | 39.6% | |||
BB or Lower | 13.1% | |||
N/R (not rated) | 0.4% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
Nuveen Investments | 27 |
Holding Summaries as of December 31, 2015 (continued)
Nuveen Inflation Protected Securities Fund
Fund Allocation
(% of net assets)
Convertible Preferred Securities | 0.1% | |||
$25 Par (or similar) Retail Preferred | 0.1% | |||
Corporate Bonds | 5.8% | |||
$1,000 Par (or similar) Institutional Preferred | 0.0% | |||
Municipal Bonds | 0.5% | |||
U.S. Government and Agency Obligations | 88.2% | |||
Asset-Backed and Mortgage-Backed Securities | 3.5% | |||
Sovereign Debt | 0.6% | |||
Investments Purchased with Collateral from Securities Lending | 0.9% | |||
Money Market Funds | 0.6% | |||
Other Assets Less Liabilities | (0.3)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bonds holdings)
Health Care Providers & Services | 17.2% | |||
Diversified Telecommunication Services | 15.0% | |||
Media | 9.7% | |||
Wireless Telecommunication Services | 6.9% | |||
Commercial Services & Supplies | 5.7% | |||
Household Durables | 4.7% | |||
Specialty Retail | 3.3% | |||
Independent Power & Renewable Electricity Producers | 3.1% | |||
Construction Materials | 2.7% | |||
Auto Components | 2.7% | |||
Banks | 2.5% | |||
Construction & Engineering | 2.2% | |||
Oil, Gas & Consumable Fuels | 2.2% | |||
Energy Equipment & Services | 2.2% | |||
Other | 19.9% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)1
AAA/U.S. Guaranteed | 93.0% | |||
AA | 1.1% | |||
A | 0.7% | |||
BBB | 1.6% | |||
BB or Lower | 3.6% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
28 | Nuveen Investments |
Nuveen Intermediate Government Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 0.6% | |||
Municipal Bonds | 3.1% | |||
U.S. Government and Agency Obligations | 61.6% | |||
Asset-Backed and Mortgage-Backed Securities | 31.7% | |||
Investments Purchased with Collateral from Securities Lending | 4.7% | |||
Money Market Funds | 1.9% | |||
Other Assets Less Liabilities | (3.6)% | |||
Net Assets | 100% |
Portfolio Credit Quality
(% of total long-term investments)1
AAA/U.S. Guaranteed | 94.9% | |||
AA | 2.9% | |||
A | 1.1% | |||
N/R (not rated) | 1.1% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
Nuveen Investments | 29 |
Holding Summaries as of December 31, 2015 (continued)
Nuveen Short Term Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 45.0% | |||
$1,000 Par (or similar) Institutional Preferred | 0.5% | |||
Municipal Bonds | 2.1% | |||
U.S. Government and Agency Obligations | 5.4% | |||
Asset-Backed and Mortgage-Backed Securities | 44.4% | |||
Sovereign Debt | 0.5% | |||
Investments Purchased with Collateral from Securities Lending | 3.3% | |||
Money Market Funds | 1.7% | |||
Other Assets Less Liabilities | (2.9)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bonds holdings)
Banks | 18.8% | |||
Capital Markets | 7.9% | |||
Oil, Gas & Consumable Fuels | 7.2% | |||
Media | 6.3% | |||
Health Care Providers & Services | 4.1% | |||
Diversified Telecommunication Services | 4.1% | |||
Chemicals | 3.7% | |||
Food Products | 3.6% | |||
Real Estate Investment Trust | 3.4% | |||
Diversified Financial Services | 3.0% | |||
Software | 3.0% | |||
Airlines | 2.8% | |||
Automobiles | 2.8% | |||
Metals & Mining | 2.8% | |||
Consumer Finance | 2.5% | |||
Food & Staples Retailing | 2.1% | |||
Insurance | 2.1% | |||
Other | 19.8% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term investments)1
AAA/U.S. Guaranteed | 32.0% | |||
AA | 13.3% | |||
A | 24.0% | |||
BBB | 21.8% | |||
BB or Lower | 6.7% | |||
N/R (not rated) | 2.2% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
30 | Nuveen Investments |
Examples
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended December 31, 2015.
The beginning of the period for the funds is July 1, 2015.
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 each 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 tables 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 Core Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R6 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 994.70 | $ | 990.80 | $ | 995.50 | $ | 995.90 | ||||||||
Expenses Incurred During Period | $ | 3.91 | $ | 7.66 | $ | 2.41 | $ | 2.66 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,021.22 | $ | 1,017.44 | $ | 1,022.72 | $ | 1,022.47 | ||||||||
Expenses Incurred During Period | $ | 3.96 | $ | 7.76 | $ | 2.44 | $ | 2.69 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.78%, 1.53%, 0.48% and 0.53% for Classes A, C, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Investments | 31 |
Expense Examples (continued)
Nuveen Core Plus Bond Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 971.10 | $ | 967.10 | $ | 970.10 | $ | 972.50 | $ | 971.50 | ||||||||||
Expenses Incurred During Period | $ | 3.82 | $ | 7.52 | $ | 5.05 | $ | 2.28 | $ | 2.58 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.27 | $ | 1,017.50 | $ | 1,020.01 | $ | 1,022.82 | $ | 1,022.52 | ||||||||||
Expenses Incurred During Period | $ | 3.91 | $ | 7.71 | $ | 5.18 | $ | 2.34 | $ | 2.64 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.77%, 1.52%, 1.02%, 0.47% and 0.52% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 976.20 | $ | 972.30 | $ | 975.10 | $ | 978.20 | $ | 977.30 | ||||||||||
Expenses Incurred During Period | $ | 4.12 | $ | 7.83 | $ | 5.36 | $ | 1.94 | $ | 2.88 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,020.96 | $ | 1,017.19 | $ | 1,019.71 | $ | 1,023.18 | $ | 1,022.22 | ||||||||||
Expenses Incurred During Period | $ | 4.22 | $ | 8.01 | $ | 5.48 | $ | 1.98 | $ | 2.95 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.83%, 1.58%, 1.08%, 0.39% and 0.58% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
32 | Nuveen Investments |
Nuveen Intermediate Government Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,001.60 | $ | 996.70 | $ | 1,000.20 | $ | 1,001.80 | ||||||||
Expenses Incurred During Period | $ | 4.28 | $ | 8.03 | $ | 5.53 | $ | 3.02 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,020.86 | $ | 1,017.09 | $ | 1,019.61 | $ | 1,022.12 | ||||||||
Expenses Incurred During Period | $ | 4.32 | $ | 8.11 | $ | 5.58 | $ | 3.05 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.85%, 1.60%, 1.10% and 0.60% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Short Term Bond Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 995.30 | $ | 990.50 | $ | 992.80 | $ | 996.60 | $ | 996.60 | ||||||||||
Expenses Incurred During Period | $ | 3.61 | $ | 7.36 | $ | 4.86 | $ | 2.16 | $ | 2.36 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.52 | $ | 1,017.75 | $ | 1,020.26 | $ | 1,022.97 | $ | 1,022.77 | ||||||||||
Expenses Incurred During Period | $ | 3.66 | $ | 7.46 | $ | 4.93 | $ | 2.19 | $ | 2.39 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.72%, 1.47%, 0.97%, 0.43% and 0.47% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Investments | 33 |
Nuveen Core Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 96.1% | ||||||||||||||||||||
CORPORATE BONDS – 43.3% | ||||||||||||||||||||
Automobiles – 0.4% | ||||||||||||||||||||
$ | 750 | General Motors Corporation | 4.000% | 4/01/25 | BBB– | $ | 710,522 | |||||||||||||
Banks – 5.8% | ||||||||||||||||||||
1,275 | Abbey National Treasury Services PLC of London | 3.050% | 8/23/18 | A1 | 1,308,511 | |||||||||||||||
655 | Bancolombia SA | 5.950% | 6/03/21 | BBB+ | 675,469 | |||||||||||||||
2,235 | Bank of America Corporation, (3) | 4.000% | 4/01/24 | A | 2,286,955 | |||||||||||||||
490 | Bank of America Corporation | 3.875% | 8/01/25 | A | 497,460 | |||||||||||||||
1,005 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,076,569 | |||||||||||||||
807 | Fifth Third Bancorp. | 3.500% | 3/15/22 | A | 818,088 | |||||||||||||||
1,110 | General Electric Capital Corporation | 6.875% | 1/10/39 | AA+ | 1,512,928 | |||||||||||||||
505 | JPMorgan Chase & Company | 3.200% | 1/25/23 | A+ | 503,628 | |||||||||||||||
1,240 | JPMorgan Chase & Company | 3.375% | 5/01/23 | A | 1,219,380 | |||||||||||||||
1,000 | JPMorgan Chase & Company | 6.400% | 5/15/38 | A+ | 1,273,813 | |||||||||||||||
10,322 | Total Banks | 11,172,801 | ||||||||||||||||||
Beverages – 0.8% | ||||||||||||||||||||
580 | Anheuser Busch InBev Finance Inc., (3) | 3.700% | 2/01/24 | A2 | 592,010 | |||||||||||||||
1,070 | Anheuser Busch InBev | 2.500% | 7/15/22 | A2 | 1,029,941 | |||||||||||||||
1,650 | Total Beverages | 1,621,951 | ||||||||||||||||||
Biotechnology – 0.8% | ||||||||||||||||||||
630 | Biogen Inc. | 3.625% | 9/15/22 | A– | 637,053 | |||||||||||||||
940 | Celgene Corporation, Convertible Notes | 3.625% | 5/15/24 | BBB+ | 924,982 | |||||||||||||||
1,570 | Total Biotechnology | 1,562,035 | ||||||||||||||||||
Capital Markets – 3.4% | ||||||||||||||||||||
665 | Charles Schwab Corporation | 3.000% | 3/10/25 | A | 654,099 | |||||||||||||||
520 | Deutsche Bank AG London | 2.500% | 2/13/19 | A3 | 523,951 | |||||||||||||||
1,280 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 1,455,767 | |||||||||||||||
1,090 | Goldman Sachs Group, Inc. | 6.750% | 10/01/37 | A– | 1,273,287 | |||||||||||||||
470 | Morgan Stanley | 6.625% | 4/01/18 | A | 515,420 | |||||||||||||||
1,145 | Morgan Stanley | 3.950% | 4/23/27 | A– | 1,111,789 | |||||||||||||||
1,105 | State Street Corporation | 3.300% | 12/16/24 | AA– | 1,115,883 | |||||||||||||||
6,275 | Total Capital Markets | 6,650,196 | ||||||||||||||||||
Communications Equipment – 0.4% | ||||||||||||||||||||
745 | Qualcomm, Inc., (3) | 3.450% | 5/20/25 | A+ | 714,691 |
34 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Containers & Packaging – 0.2% | ||||||||||||||||||||
$ | 480 | Packaging Corporation of America, (3) | 3.650% | 9/15/24 | BBB | $ | 466,700 | |||||||||||||
Diversified Financial Services – 1.0% | ||||||||||||||||||||
995 | Rabobank Nederland | 3.875% | 2/08/22 | Aa2 | 1,050,176 | |||||||||||||||
825 | Voya Financial Inc. | 5.500% | 7/15/22 | BBB | 923,521 | |||||||||||||||
1,820 | Total Diversified Financial Services | 1,973,697 | ||||||||||||||||||
Diversified Telecommunication Services – 2.5% | ||||||||||||||||||||
1,250 | AT&T, Inc. | 5.550% | 8/15/41 | A– | 1,255,144 | |||||||||||||||
2,020 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 2,012,973 | |||||||||||||||
1,515 | Verizon Communications | 5.150% | 9/15/23 | A– | 1,665,655 | |||||||||||||||
4,785 | Total Diversified Telecommunication Services | 4,933,772 | ||||||||||||||||||
Energy Equipment & Services – 1.4% | ||||||||||||||||||||
1,000 | Diamond Offshore Drilling Inc., (3) | 5.700% | 10/15/39 | BBB+ | 683,238 | |||||||||||||||
750 | Nabors Industries Inc., (3) | 4.625% | 9/15/21 | Baa2 | 616,565 | |||||||||||||||
1,350 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 1,316,597 | |||||||||||||||
3,100 | Total Energy Equipment & Services | 2,616,400 | ||||||||||||||||||
Food & Staples Retailing – 1.3% | ||||||||||||||||||||
930 | CVS Health Corporation, (3) | 3.875% | 7/20/25 | BBB+ | 949,294 | |||||||||||||||
730 | Sysco Corporation | 3.750% | 10/01/25 | A2 | 740,345 | |||||||||||||||
850 | Walgreen Company, (3) | 3.100% | 9/15/22 | BBB | 823,513 | |||||||||||||||
2,510 | Total Food & Staples Retailing | 2,513,152 | ||||||||||||||||||
Food Products – 0.6% | ||||||||||||||||||||
1,130 | Mondelez International Inc. | 2.250% | 2/01/19 | Baa1 | 1,129,741 | |||||||||||||||
Health Care Equipment & Supplies – 1.1% | ||||||||||||||||||||
680 | Becton Dickinson & Company | 3.734% | 12/15/24 | BBB+ | 686,241 | |||||||||||||||
1,355 | Ochsner Clinic Foundation | 5.897% | 5/15/45 | Baa1 | 1,455,653 | |||||||||||||||
2,035 | Total Health Care Equipment & Supplies | 2,141,894 | ||||||||||||||||||
Health Care Providers & Services – 3.1% | ||||||||||||||||||||
1,715 | Mayo Clinic Rochester | 3.774% | 11/15/43 | AA | 1,593,437 | |||||||||||||||
970 | NYU Hospitals Center | 4.784% | 7/01/44 | A– | 968,346 | |||||||||||||||
1,215 | UnitedHealth Group Incorporated | 2.875% | 3/15/22 | A+ | 1,213,826 | |||||||||||||||
1,315 | Wellpoint Inc. | 3.125% | 5/15/22 | A | 1,291,129 | |||||||||||||||
1,065 | Zoetis Incorporated | 3.250% | 2/01/23 | Baa2 | 1,017,101 | |||||||||||||||
6,280 | Total Health Care Providers & Services | 6,083,839 | ||||||||||||||||||
Household Products – 0.5% | ||||||||||||||||||||
945 | Macys Retail Holdings Inc. | 4.375% | 9/01/23 | BBB+ | 941,575 | |||||||||||||||
Insurance – 2.5% | ||||||||||||||||||||
500 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 613,285 |
Nuveen Investments | 35 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Insurance (continued) | ||||||||||||||||||||
$ | 620 | American International Group, Inc. | 3.750% | 7/10/25 | A– | $ | 614,819 | |||||||||||||
1,370 | Lincoln National Corporation | 4.200% | 3/15/22 | A– | 1,432,527 | |||||||||||||||
1,220 | MetLife Inc., (3) | 3.000% | 3/01/25 | A– | 1,173,234 | |||||||||||||||
940 | Prudential Financial Inc. | 3.500% | 5/15/24 | A | 944,652 | |||||||||||||||
4,650 | Total Insurance | 4,778,517 | ||||||||||||||||||
Internet & Catalog Retail – 0.5% | ||||||||||||||||||||
980 | Amazon.com Incorporated, (3) | 3.800% | 12/05/24 | AA– | 1,020,013 | |||||||||||||||
IT Services – 0.5% | ||||||||||||||||||||
955 | Visa Inc. | 3.150% | 12/14/25 | A+ | 957,018 | |||||||||||||||
Leisure Products – 0.5% | ||||||||||||||||||||
1,025 | Hyatt Hotels Corporation | 3.375% | 7/15/23 | BBB | 973,834 | |||||||||||||||
Machinery – 0.4% | ||||||||||||||||||||
830 | Ingersoll-Rand Luxembourg Finance SA | 3.550% | 11/01/24 | BBB | 812,634 | |||||||||||||||
Media – 4.2% | ||||||||||||||||||||
605 | 21st Century Fox America Inc. | 4.000% | 10/01/23 | BBB+ | 625,331 | |||||||||||||||
350 | 21st Century Fox America Inc. | 6.650% | 11/15/37 | BBB+ | 406,721 | |||||||||||||||
785 | British Sky Broadcasting Group PLC, 144A | 6.100% | 2/15/18 | BBB | 845,381 | |||||||||||||||
835 | CBS Corporation | 7.875% | 7/30/30 | BBB | 1,065,421 | |||||||||||||||
835 | CCO Safari II LLC, 144A | 4.908% | 7/23/25 | BBB– | 834,179 | |||||||||||||||
1,090 | Cox Communications Inc., 144A | 3.850% | 2/01/25 | BBB+ | 999,405 | |||||||||||||||
890 | DIRECTV Holdings LLC | 3.800% | 3/15/22 | A– | 896,168 | |||||||||||||||
660 | Discovery Communications Inc. | 5.050% | 6/01/20 | Baa2 | 701,742 | |||||||||||||||
1,460 | NBC Universal Media LLC | 6.400% | 4/30/40 | A– | 1,820,099 | |||||||||||||||
7,510 | Total Media | 8,194,447 | ||||||||||||||||||
Metals & Mining – 1.6% | ||||||||||||||||||||
715 | Anglogold Holdings PLC | 6.500% | 4/15/40 | Baa3 | 475,475 | |||||||||||||||
1,230 | Freeport McMoRan, Inc., (3) | 3.550% | 3/01/22 | BBB | 713,400 | |||||||||||||||
770 | Newmont Mining Corporation | 3.500% | 3/15/22 | BBB | 686,567 | |||||||||||||||
840 | Nucor Corporation | 4.000% | 8/01/23 | A– | 814,751 | |||||||||||||||
540 | Rio Tinto Finance USA PLC | 2.875% | 8/21/22 | A– | 489,797 | |||||||||||||||
4,095 | Total Metals & Mining | 3,179,990 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 2.7% | ||||||||||||||||||||
1,100 | Apache Corporation | 4.250% | 1/15/44 | BBB+ | 880,352 | |||||||||||||||
660 | Cenovus Energy Inc. | 4.450% | 9/15/42 | BBB | 480,819 | |||||||||||||||
1,110 | EOG Resources Inc. | 4.100% | 2/01/21 | A– | 1,170,972 | |||||||||||||||
960 | Marathon Petroleum Corporation | 6.500% | 3/01/41 | BBB | 960,924 | |||||||||||||||
590 | Spectra Energy Partners LP | 4.750% | 3/15/24 | BBB | 571,787 |
36 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 480 | SunCor Energy Inc. | 5.950% | 12/01/34 | A– | $ | 480,912 | |||||||||||||
775 | Valero Energy Corporation, (3) | 3.650% | 3/15/25 | BBB | 731,390 | |||||||||||||||
5,675 | Total Oil, Gas & Consumable Fuels | 5,277,156 | ||||||||||||||||||
Pharmaceuticals – 0.5% | ||||||||||||||||||||
995 | Merck & Company Inc. | 2.750% | 2/10/25 | AA | 968,734 | |||||||||||||||
Real Estate Investment Trust – 2.1% | ||||||||||||||||||||
795 | American Tower Company | 5.000% | 2/15/24 | BBB | 841,589 | |||||||||||||||
1,385 | Digital Realty Trust Inc. | 3.625% | 10/01/22 | BBB | 1,331,359 | |||||||||||||||
605 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 605,723 | |||||||||||||||
1,255 | WP Carey Inc. | 4.600% | 4/01/24 | Baa2 | 1,251,951 | |||||||||||||||
4,040 | Total Real Estate Investment Trust | 4,030,622 | ||||||||||||||||||
Road & Rail – 0.5% | ||||||||||||||||||||
895 | Burlington Northern Santa Fe, LLC | 3.400% | 9/01/24 | A3 | 896,326 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 0.6% | ||||||||||||||||||||
1,040 | Applied Materials Inc. | 4.300% | 6/15/21 | A– | 1,109,945 | |||||||||||||||
Software – 0.5% | ||||||||||||||||||||
965 | Computer Sciences Corporation | 4.450% | 9/15/22 | BBB+ | 989,978 | |||||||||||||||
Specialty Retail – 0.9% | ||||||||||||||||||||
795 | Home Depot, Inc. | 2.625% | 6/01/22 | A | 794,263 | |||||||||||||||
1,000 | Swiss Re Treasury US Corporation, 144A | 4.250% | 12/06/42 | AA– | 943,759 | |||||||||||||||
1,795 | Total Specialty Retail | 1,738,022 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||||||||||||
905 | HP Inc. | 4.650% | 12/09/21 | BBB+ | 901,652 | |||||||||||||||
Tobacco – 0.6% | ||||||||||||||||||||
1,215 | Reynolds American Inc. | 3.250% | 11/01/22 | BBB– | 1,201,996 | |||||||||||||||
Transportation Infrastructure – 0.5% | ||||||||||||||||||||
1,000 | Sydney Airport Finance Company Party Limited, 144A | 3.900% | 3/22/23 | BBB | 998,571 | |||||||||||||||
Wireless Telecommunication Services – 0.4% | ||||||||||||||||||||
880 | Rogers Communications Inc. | 3.625% | 12/15/25 | BBB+ | 865,662 | |||||||||||||||
$ | 83,847 | Total Corporate Bonds (cost $85,723,038) | 84,128,083 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 0.3% |
| |||||||||||||||||||
Banks – 0.3% | ||||||||||||||||||||
$ | 700 | Wachovia Capital Trust III | 5.570% | N/A (4) | BBB | $ | 674,275 | |||||||||||||
$ | 700 | Total $1,000 Par (or similar) Institutional Preferred (cost $619,119) |
| 674,275 |
Nuveen Investments | 37 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Optional Call Provisions (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.8% | ||||||||||||||||||||
North Carolina – 0.8% | ||||||||||||||||||||
$ | 1,520 | North Carolina Eastern Municipal Power Agency, Revenue Bonds, Federally Taxable Series 2015, 3.808%, 7/01/23 | No Opt. Call | A | $ | 1,545,627 | ||||||||||||||
$ | 1,520 | Total Municipal Bonds (cost $1,520,000) | 1,545,627 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 10.2% |
| |||||||||||||||||||
$ | 2,825 | Fannie Mae Notes | 1.500% | 6/22/20 | Aaa | $ | 2,790,947 | |||||||||||||
2,055 | Freddie Mac Reference Notes | 5.000% | 12/14/18 | Aa2 | 2,264,495 | |||||||||||||||
60 | Freddie Mac Reference Notes | 1.750% | 5/30/19 | Aaa | 60,459 | |||||||||||||||
250 | U.S. Treasury Bonds | 2.750% | 11/15/42 | Aaa | 237,865 | |||||||||||||||
1,470 | U.S. Treasury Bonds, (3) | 3.625% | 2/15/44 | Aaa | 1,650,472 | |||||||||||||||
2,270 | U.S. Treasury Bonds | 2.500% | 2/15/45 | Aaa | 2,032,544 | |||||||||||||||
1,500 | U.S. Treasury Bonds, (3) | 3.000% | 11/15/45 | Aaa | 1,492,668 | |||||||||||||||
2,830 | U.S. Treasury Notes | 2.625% | 8/15/20 | Aaa | 2,940,770 | |||||||||||||||
2,570 | U.S. Treasury Notes | 2.500% | 5/15/24 | Aaa | 2,625,951 | |||||||||||||||
830 | U.S. Treasury Notes | 2.375% | 8/15/24 | Aaa | 838,595 | |||||||||||||||
800 | U.S. Treasury Notes | 0.375% | 2/15/16 | Aaa | 800,000 | |||||||||||||||
1,775 | U.S. Treasury Notes | 0.875% | 1/31/18 | Aaa | 1,766,295 | |||||||||||||||
395 | U.S. Treasury Notes | 2.875% | 8/15/45 | Aaa | 382,889 | |||||||||||||||
$ | 19,630 | Total U.S. Government and Agency Obligations (cost $19,736,536) |
| 19,883,950 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 40.8% |
| |||||||||||||||||||
$ | 1,270 | 321 Henderson Receivables LLC, Series 2010-3A | 3.820% | 12/15/48 | Aaa | $ | 1,301,045 | |||||||||||||
898 | American Homes 4 Rent, Series 2014-SFR2 | 3.786% | 10/17/36 | Aaa | 903,075 | |||||||||||||||
1,000 | American Homes 4 Rent, Series 2015-SFR2 | 5.036% | 10/17/45 | Baa2 | 983,603 | |||||||||||||||
260 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.512% | 9/15/48 | A– | 250,793 | |||||||||||||||
165 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | 120,061 | |||||||||||||||
2,000 | Citigroup Commercial Mortgage Trust Series 2012-GC8 | 3.024% | 9/10/45 | Aaa | 2,003,843 | |||||||||||||||
1,846 | Colony Anerican Homes Trust 2014-1A | 1.576% | 5/17/31 | Aaa | 1,808,070 | |||||||||||||||
625 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.495% | 10/10/48 | A– | 590,489 | |||||||||||||||
—(6) | ContiMortgage Home Equity Loan Trust, Series 1997-2 | 7.090% | 4/15/28 | AAA | 124 | |||||||||||||||
408 | Fannie Mae Mortgage Pool 725111 | 2.522% | 9/01/33 | Aaa | 435,473 | |||||||||||||||
910 | Fannie Mae Mortgage Pool 725205 | 5.000% | 3/01/34 | Aaa | 1,006,528 | |||||||||||||||
352 | Fannie Mae Mortgage Pool 848390 | 2.103% | 12/01/35 | Aaa | 368,811 |
38 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 654 | Fannie Mae Mortgage Pool 886034 | 2.836% | 7/01/36 | Aaa | $ | 698,577 | |||||||||||||
1,760 | Fannie Mae Mortgage Pool 890310 | 4.500% | 12/01/40 | Aaa | 1,905,045 | |||||||||||||||
1,362 | Fannie Mae Mortgage Pool 960605 | 5.000% | 8/01/37 | Aaa | 1,502,085 | |||||||||||||||
527 | Fannie Mae Mortgage Pool 995949 | 2.582% | 9/01/36 | Aaa | 559,508 | |||||||||||||||
2,692 | Fannie Mae Mortgage Pool AB2085 | 4.000% | 1/01/41 | Aaa | 2,855,600 | |||||||||||||||
3,198 | Fannie Mae Mortgage Pool AB9659 | 3.000% | 6/01/43 | Aaa | 3,217,257 | |||||||||||||||
1,912 | Fannie Mae Mortgage Pool AD1593 | 4.500% | 2/01/40 | Aaa | 2,069,424 | |||||||||||||||
1,351 | Fannie Mae Mortgage Pool AE0058 | 2.504% | 7/01/36 | Aaa | 1,427,688 | |||||||||||||||
2,404 | Fannie Mae Mortgage Pool AE0217 | 4.500% | 8/01/40 | Aaa | 2,601,473 | |||||||||||||||
2,027 | Fannie Mae Mortgage Pool AE0981 | 3.500% | 3/01/41 | Aaa | 2,095,191 | |||||||||||||||
986 | Fannie Mae Mortgage Pool AH3804 | 4.000% | 2/01/41 | Aaa | 1,045,770 | |||||||||||||||
2,706 | Fannie Mae Mortgage Pool AH5575 | 4.000% | 2/01/41 | Aaa | 2,869,460 | |||||||||||||||
2,072 | Fannie Mae Mortgage Pool AH8954 | 4.000% | 4/01/41 | Aaa | 2,197,603 | |||||||||||||||
1,325 | Fannie Mae Mortgage Pool AL0160 | 4.500% | 5/01/41 | Aaa | 1,434,007 | |||||||||||||||
2,317 | Fannie Mae Mortgage Pool AL0215 | 4.500% | 4/01/41 | Aaa | 2,507,183 | |||||||||||||||
1,515 | Fannie Mae Mortgage Pool AU2412 | 3.000% | 12/01/44 | Aaa | 1,515,290 | |||||||||||||||
2,985 | Fannie Mae Mortgage Pool AU3353 | 3.000% | 8/01/43 | Aaa | 2,990,191 | |||||||||||||||
2,255 | Fannie Mae Mortgage Pool AY3376 | 3.500% | 4/01/45 | Aaa | 2,327,372 | |||||||||||||||
1,878 | Fannie Mae Mortgage Pool MA1028 | 4.000% | 4/01/42 | Aaa | 1,992,268 | |||||||||||||||
3 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through CertificatesR 1990-89 K | 6.500% | 7/25/20 | Aaa | 2,919 | |||||||||||||||
6,090 | Fannie Mae TBA Mortgage Pool, (WI/DD) | 3.500% | TBA | Aaa | 6,281,204 | |||||||||||||||
1,228 | Fannie Mae, Connecticut Avenue Securities, Series 2014-C03 | 1.627% | 7/25/24 | Aaa | 1,223,424 | |||||||||||||||
4 | Federal Home Loan Mortgage Corporation, REMIC 1167 E | 7.500% | 11/15/21 | Aaa | 4,563 | |||||||||||||||
8 | Federal Home Loan Mortgage Corporation, REMIC 1286 A | 6.000% | 5/15/22 | Aaa | 8,439 | |||||||||||||||
458 | Federal Home Loan Mortgage Corporation, REMIC 2750 HE | 5.000% | 2/15/19 | Aaa | 468,228 | |||||||||||||||
301 | Freddie Mac Gold Pool 786281 | 2.626% | 1/01/28 | Aaa | 319,080 | |||||||||||||||
243 | Freddie Mac Gold Pool 847161 | 2.521% | 5/01/31 | Aaa | 253,519 | |||||||||||||||
265 | Freddie Mac Gold Pool 847190 | 2.563% | 4/01/29 | Aaa | 276,767 | |||||||||||||||
981 | Freddie Mac Gold Pool 847209 | 2.407% | 10/01/30 | Aaa | 1,015,927 | |||||||||||||||
695 | Freddie Mac Gold Pool 847210 | 2.457% | 9/01/33 | Aaa | 745,901 | |||||||||||||||
1,161 | Freddie Mac Gold Pool G05852 | 5.500% | 3/01/39 | Aaa | 1,287,551 | |||||||||||||||
880 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2013-K712 | 3.484% | 5/25/45 | Aaa | 882,944 | |||||||||||||||
1,399 | Ginnie Mae Mortgage Pool MA2521 | 3.500% | 1/20/45 | Aaa | 1,459,846 | |||||||||||||||
3,264 | Government National Mortgage Association Pool AA5391 | 3.500% | 6/15/42 | Aaa | 3,398,139 | |||||||||||||||
1,690 | Invitation Homes Trust 2013-SFR1 | 1.576% | 12/17/30 | Aaa | 1,656,112 | |||||||||||||||
963 | Master Resecuritization Trust 2009-1 | 6.000% | 10/25/36 | A | 1,006,317 | |||||||||||||||
2,213 | Santander Drive Auto Receivables Trust, Series 2014-3 | 0.810% | 7/16/18 | AAA | 2,210,654 |
Nuveen Investments | 39 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 137 | Structured Adjustable Rate Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2004-11 | 2.621% | 8/25/34 | N/R | $ | 136,622 | |||||||||||||
1,090 | Structured Agency Credit Risk Debt Notes, 2013-DN2 | 1.877% | 11/25/23 | A2 | 1,090,442 | |||||||||||||||
2,783 | U.S. Department of Veterans, Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, Series 2011-1 | 3.750% | 2/15/35 | Aaa | 2,914,421 | |||||||||||||||
2 | U.S. Small Business Administration Guaranteed Participating Securities Participation Certificates, Series 2006-10A | 5.408% | 2/10/16 | Aaa | 2,112 | |||||||||||||||
1,691 | U.S. Small Business Administration Guaranteed Participating Securities, Participation Certificates, Series 2010-P10B | 3.215% | 9/10/20 | Aaa | 1,740,594 | |||||||||||||||
1,273 | Walter Investment Management Company Capital Trust, Series 2012-AA | 4.549% | 10/16/50 | BBB | 1,279,034 | |||||||||||||||
2,000 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-C29 | 3.637% | 6/15/48 | Aaa | 2,023,258 | |||||||||||||||
$ | 76,482 | Total Asset-Backed and Mortgage-Backed Securities (cost $77,722,955) |
| 79,270,924 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 0.7% | ||||||||||||||||||||
Mexico – 0.7% | ||||||||||||||||||||
$ | 1,400 | United Mexican States | 5.625% | 1/15/17 | A3 | $ | 1,454,600 | |||||||||||||
$ | 1,400 | Total Sovereign Debt (cost $1,387,694) | 1,454,600 | |||||||||||||||||
Total Long-Term Investments (cost $186,709,342) | 186,957,459 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 4.7% |
| |||||||||||||||||||
Money Market Funds – 4.7% | ||||||||||||||||||||
8,950,753 | Mount Vernon Securities Lending Trust Prime Portfolio, (8) | 0.108% (7) | $ | 8,950,753 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $8,950,753) |
| 8,950,753 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 6.3% | ||||||||||||||||||||
Money Market Funds – 6.3% | ||||||||||||||||||||
12,208,240 | First American Treasury Obligations Fund, Class Z | 0.473% (7) | $ | 12,208,240 | ||||||||||||||||
Total Short-Term Investments (cost $12,208,240) | 12,208,240 | |||||||||||||||||||
Total Investments (cost $207,868,335) – 107.1% | 208,116,452 | |||||||||||||||||||
Other Assets Less Liabilities – (7.1)% (9) | (13,798,451) | |||||||||||||||||||
Net Assets – 100% | $ | 194,318,001 |
40 | Nuveen Investments |
Investments in Derivatives as of December 31, 2015
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Variation Margin (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (254 | ) | 3/16 | $ | (30,053,360 | ) | $ | (35,719 | ) | $ | 67,606 | ||||||||||||
U.S. Treasury 10-Year Note | Short | (100 | ) | 3/16 | (12,590,625 | ) | (25,231 | ) | 43,107 | |||||||||||||||
U.S. Treasury Long Bond | Long | 1 | 3/16 | 153,750 | (567 | ) | (34 | ) | ||||||||||||||||
U.S. Treasury Ultra Bond | Long | 46 | 3/16 | 7,299,625 | 46,000 | (3,111 | ) | |||||||||||||||||
$ | (35,190,610 | ) | $ | (15,517 | ) | $ | 107,568 |
* | The aggregate Notional Amount at Value of long and short positions is $7,453,375 and $(42,643,985), 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) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a 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 $8,646,040. |
(4) | Perpetual security. Maturity date is not applicable. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(6) | Principal Amount (000) rounds to less than $1,000. |
(7) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(8) | 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 100% 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. |
(9) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
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. |
(WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
Nuveen Investments | 41 |
Nuveen Core Plus Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.2% | ||||||||||||||||||||
CORPORATE BONDS – 62.7% | ||||||||||||||||||||
Aerospace & Defense – 1.3% | ||||||||||||||||||||
$ | 1,295 | BAE Systems Holdings, 144A | 3.850% | 12/15/25 | BBB+ | $ | 1,282,791 | |||||||||||||
2,780 | Exelis, Inc. | 5.550% | 10/01/21 | BBB– | 3,048,662 | |||||||||||||||
1,460 | Martin Marietta Materials | 4.250% | 7/02/24 | BBB | 1,433,613 | |||||||||||||||
5,535 | Total Aerospace & Defense | 5,765,066 | ||||||||||||||||||
Air Freight & Logistics – 0.2% | ||||||||||||||||||||
800 | XPO Logistics, Inc., 144A, (3) | 6.500% | 6/15/22 | B2 | 740,000 | |||||||||||||||
Airlines – 0.4% | ||||||||||||||||||||
1,589 | Northwest Airlines Trust Pass-Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 1,770,343 | |||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||
3,000 | General Motors Corporation | 4.000% | 4/01/25 | BBB– | 2,842,089 | |||||||||||||||
Banks – 10.5% | ||||||||||||||||||||
2,900 | Bancolombia SA | 5.950% | 6/03/21 | BBB+ | 2,990,625 | |||||||||||||||
795 | Bank of America Corporation | 6.250% | 3/05/65 | BB+ | 796,988 | |||||||||||||||
4,240 | Bank of America Corporation | 4.250% | 10/22/26 | A– | 4,197,329 | |||||||||||||||
2,955 | Bank of America Corporation, (3) | 4.000% | 4/01/24 | A | 3,023,692 | |||||||||||||||
2,965 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 2,849,439 | |||||||||||||||
845 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 857,675 | |||||||||||||||
1,500 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,606,820 | |||||||||||||||
1,235 | Citigroup Inc. | 3.875% | 10/25/23 | A | 1,276,414 | |||||||||||||||
1,000 | Citigroup Inc. | 3.750% | 6/16/24 | A | 1,018,466 | |||||||||||||||
2,215 | Citigroup Inc. | 3.300% | 4/27/25 | A | 2,175,544 | |||||||||||||||
2,000 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 1,991,402 | |||||||||||||||
2,915 | General Electric Capital Corporation | 6.875% | 1/10/39 | AA+ | 3,973,139 | |||||||||||||||
1,890 | HSBC Holdings PLC | 6.800% | 6/01/38 | A+ | 2,352,455 | |||||||||||||||
1,250 | JPMorgan Chase & Company | 6.750% | 12/31/49 | BBB– | 1,362,500 | |||||||||||||||
2,665 | JPMorgan Chase & Company | 3.200% | 1/25/23 | A+ | 2,657,759 | |||||||||||||||
1,680 | JPMorgan Chase & Company | 3.375% | 5/01/23 | A | 1,652,063 | |||||||||||||||
2,180 | JPMorgan Chase & Company | 6.400% | 5/15/38 | A+ | 2,776,912 | |||||||||||||||
1,200 | Royal Bank of Scotland Group PLC | 6.100% | 6/10/23 | BBB | 1,289,908 | |||||||||||||||
1,400 | Santander UK PLC, 144A | 5.000% | 11/07/23 | A– | 1,457,331 | |||||||||||||||
2,520 | Societe Generale, 144A | 5.000% | 1/17/24 | A– | 2,569,901 | |||||||||||||||
1,470 | Standard Chartered PLC, 144A | 5.700% | 3/26/44 | A2 | 1,471,186 | |||||||||||||||
1,200 | State Bank of India London, 144A | 4.875% | 4/17/24 | BBB– | 1,282,542 | |||||||||||||||
43,020 | Total Banks | 45,630,090 |
42 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Biotechnology – 0.6% | ||||||||||||||||||||
$ | 2,405 | Baxalta Inc., 144A | 4.000% | 6/23/25 | BBB+ | $ | 2,381,304 | |||||||||||||
Building Products – 0.9% | ||||||||||||||||||||
1,695 | Masco Corporation | 5.950% | 3/15/22 | BBB | 1,830,600 | |||||||||||||||
2,120 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB– | 2,122,574 | |||||||||||||||
3,815 | Total Building Products | 3,953,174 | ||||||||||||||||||
Capital Markets – 2.8% | ||||||||||||||||||||
3,000 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 3,411,954 | |||||||||||||||
3,685 | Goldman Sachs Group, Inc. | 6.750% | 10/01/37 | A– | 4,304,644 | |||||||||||||||
4,105 | Morgan Stanley | 5.500% | 7/28/21 | A | 4,601,348 | |||||||||||||||
10,790 | Total Capital Markets | 12,317,946 | ||||||||||||||||||
Chemicals – 2.4% | ||||||||||||||||||||
2,000 | Agrium Inc., (3) | 3.375% | 3/15/25 | BBB | 1,825,764 | |||||||||||||||
875 | Braskem Finance Limited, 144A | 5.750% | 4/15/21 | BBB– | 761,250 | |||||||||||||||
3,830 | Incitec Pivot Finance, 144A | 6.000% | 12/10/19 | BBB | 4,154,213 | |||||||||||||||
1,400 | Office Cherifien Des Phosphates SA, 144A | 5.625% | 4/25/24 | BBB– | 1,420,650 | |||||||||||||||
1,510 | Platform Specialty Products Corporation, 144A | 6.500% | 2/01/22 | B+ | 1,306,150 | |||||||||||||||
1,000 | PolyOne Corporation | 5.250% | 3/15/23 | BB– | 975,000 | |||||||||||||||
10,615 | Total Chemicals | 10,443,027 | ||||||||||||||||||
Commercial Services & Supplies – 0.5% | ||||||||||||||||||||
1,000 | ADT Corporation, (3) | 6.250% | 10/15/21 | BBB– | 1,044,550 | |||||||||||||||
990 | R.R. Donnelley & Sons Company, (3) | 7.625% | 6/15/20 | BB– | 1,020,839 | |||||||||||||||
1,990 | Total Commercial Services & Supplies | 2,065,389 | ||||||||||||||||||
Communications Equipment – 0.5% | ||||||||||||||||||||
2,350 | Qualcomm, Inc., (3) | 3.450% | 5/20/25 | A+ | 2,254,395 | |||||||||||||||
Construction & Engineering – 0.3% | ||||||||||||||||||||
1,050 | AECOM Technology Corporation | 5.750% | 10/15/22 | BB– | 1,081,500 | |||||||||||||||
Construction Materials – 0.4% | ||||||||||||||||||||
1,550 | Norbord Inc., 144A | 5.375% | 12/01/20 | Ba2 | 1,550,000 | |||||||||||||||
Consumer Finance – 1.8% | ||||||||||||||||||||
2,348 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 2,298,767 | |||||||||||||||
1,500 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 1,510,074 | |||||||||||||||
1,790 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 1,915,023 | |||||||||||||||
2,000 | Ford Motor Credit Company, (3) | 4.250% | 9/20/22 | BBB– | 2,046,240 | |||||||||||||||
7,638 | Total Consumer Finance | 7,770,104 | ||||||||||||||||||
Containers & Packaging – 0.7% | ||||||||||||||||||||
1,145 | Packaging Corporation of America | 3.650% | 9/15/24 | BBB | 1,113,274 | |||||||||||||||
1,945 | Rock-Tenn Company | 4.900% | 3/01/22 | BBB | 2,062,970 | |||||||||||||||
3,090 | Total Containers & Packaging | 3,176,244 |
Nuveen Investments | 43 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Diversified Financial Services – 1.6% | ||||||||||||||||||||
$ | 2,600 | BNP Paribas, (3) | 4.250% | 10/15/24 | A | $ | 2,577,045 | |||||||||||||
1,250 | Fly Leasing Limited | 6.750% | 12/15/20 | BB | 1,281,063 | |||||||||||||||
3,050 | Rabobank Nederland | 3.875% | 2/08/22 | Aa2 | 3,219,132 | |||||||||||||||
6,900 | Total Diversified Financial Services | 7,077,240 | ||||||||||||||||||
Diversified Telecommunication Services – 2.9% | ||||||||||||||||||||
1,315 | AT&T, Inc. | 5.550% | 8/15/41 | A– | 1,320,411 | |||||||||||||||
3,190 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 3,341,525 | |||||||||||||||
2,610 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 2,600,921 | |||||||||||||||
1,000 | Verizon Communications | 5.150% | 9/15/23 | A– | 1,099,442 | |||||||||||||||
1,000 | Verizon Communications, (3) | 3.500% | 11/01/24 | A– | 988,187 | |||||||||||||||
2,010 | Verizon Communications | 6.900% | 4/15/38 | A– | 2,402,855 | |||||||||||||||
700 | Verizon Communications | 6.550% | 9/15/43 | A– | 831,024 | |||||||||||||||
11,825 | Total Diversified Telecommunication Services | 12,584,365 | ||||||||||||||||||
Electric Utilities – 0.6% | ||||||||||||||||||||
1,590 | FirstEnergy Transmission LLC, 144A | 4.350% | 1/15/25 | Baa3 | 1,612,611 | |||||||||||||||
1,065 | PPL Capital Funding Inc. | 3.500% | 12/01/22 | BBB+ | 1,073,376 | |||||||||||||||
2,655 | Total Electric Utilities | 2,685,987 | ||||||||||||||||||
Electronic Equipment, Instruments & Components – 0.2% | ||||||||||||||||||||
1,025 | Anixter Inc. | 5.125% | 10/01/21 | BB+ | 1,025,000 | |||||||||||||||
Energy Equipment & Services – 2.1% | ||||||||||||||||||||
2,180 | Diamond Offshore Drilling Inc., (3) | 5.700% | 10/15/39 | BBB+ | 1,489,459 | |||||||||||||||
2,425 | Ensco PLC, (3) | 4.700% | 3/15/21 | BBB | 1,953,415 | |||||||||||||||
2,000 | Nabors Industries Inc., (3) | 4.625% | 9/15/21 | Baa2 | 1,644,174 | |||||||||||||||
1,260 | Noble Holding International Limited GDR, (3) | 5.950% | 4/01/25 | BBB | 869,518 | |||||||||||||||
2,000 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 1,950,514 | |||||||||||||||
1,880 | Weatherford International PLC | 7.000% | 3/15/38 | BBB– | 1,311,300 | |||||||||||||||
11,745 | Total Energy Equipment & Services | 9,218,380 | ||||||||||||||||||
Food & Staples Retailing – 0.8% | ||||||||||||||||||||
1,000 | Supervalu Inc. | 6.750% | 6/01/21 | B | 905,000 | |||||||||||||||
2,625 | Walgreens Boots Alliance, Inc. | 3.800% | 11/18/24 | BBB | 2,548,689 | |||||||||||||||
3,625 | Total Food & Staples Retailing | 3,453,689 | ||||||||||||||||||
Food Products – 1.0% | ||||||||||||||||||||
1,600 | Kraft Foods Group Inc. | 5.000% | 6/04/42 | BBB– | 1,610,979 | |||||||||||||||
2,000 | Mead Johnson Nutrition Co | 4.125% | 11/15/25 | Baa1 | 2,016,078 | |||||||||||||||
750 | Pilgrim’s Pride Corporation, 144A | 5.750% | 3/15/25 | BB+ | 729,375 | |||||||||||||||
4,350 | Total Food Products | 4,356,432 | ||||||||||||||||||
Health Care Providers & Services – 0.5% | ||||||||||||||||||||
2,205 | UnitedHealth Group Incorporated | 4.750% | 7/15/45 | A+ | 2,320,357 |
44 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Hotels, Restaurants & Leisure – 0.2% | ||||||||||||||||||||
$ | 1,000 | Wynn Macau Limited, 144A, (3) | 5.250% | 10/15/21 | Ba2 | $ | 880,000 | |||||||||||||
Household Durables – 0.6% | ||||||||||||||||||||
1,500 | Brookfield Residential Properties Inc., 144A | 6.500% | 12/15/20 | BB– | 1,445,625 | |||||||||||||||
1,375 | Harman International Industries, Inc. | 4.150% | 5/15/25 | BBB– | 1,318,552 | |||||||||||||||
2,875 | Total Household Durables | 2,764,177 | ||||||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
2,000 | Tyco International Group | 3.900% | 2/14/26 | A3 | 2,005,668 | |||||||||||||||
Insurance – 1.7% | ||||||||||||||||||||
1,475 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 1,809,191 | |||||||||||||||
1,650 | Genworth Holdings Inc. | 4.800% | 2/15/24 | Ba1 | 1,113,750 | |||||||||||||||
2,000 | Lincoln National Corporation | 4.200% | 3/15/22 | A– | 2,091,280 | |||||||||||||||
2,190 | XLIT Limited | 4.450% | 3/31/25 | BBB | 2,146,548 | |||||||||||||||
7,315 | Total Insurance | 7,160,769 | ||||||||||||||||||
Leisure Products – 0.7% | ||||||||||||||||||||
2,950 | Hyatt Hotels Corporation | 3.375% | 7/15/23 | BBB | 2,802,742 | |||||||||||||||
Machinery – 1.3% | ||||||||||||||||||||
1,000 | CTP Transportation Products LLC-Finance Inc., 144A | 8.250% | 12/15/19 | B | 1,042,500 | |||||||||||||||
1,120 | Cummins Engine Inc. | 4.875% | 10/01/43 | A+ | 1,156,315 | |||||||||||||||
1,850 | Ingersoll-Rand Luxembourg Finance SA | 3.550% | 11/01/24 | BBB | 1,811,292 | |||||||||||||||
1,480 | Pentair Finance SA | 4.650% | 9/15/25 | BBB | 1,516,877 | |||||||||||||||
5,450 | Total Machinery | 5,526,984 | ||||||||||||||||||
Media – 5.6% | ||||||||||||||||||||
3,590 | 21st Century Fox America Inc. | 6.650% | 11/15/37 | BBB+ | 4,171,799 | |||||||||||||||
1,470 | CBS Corporation | 3.500% | 1/15/25 | BBB | 1,402,333 | |||||||||||||||
1,500 | CCO Holdings LLC Finance Corporation, 144A | 5.125% | 5/01/23 | BB– | 1,501,875 | |||||||||||||||
2,000 | CCO Safari II LLC, 144A | 4.908% | 7/23/25 | BBB– | 1,998,034 | |||||||||||||||
1,040 | Cox Communications Inc., 144A | 3.250% | 12/15/22 | BBB+ | 945,353 | |||||||||||||||
2,000 | Cox Communications Inc., 144A | 3.850% | 2/01/25 | BBB+ | 1,833,770 | |||||||||||||||
2,270 | DIRECTV Holdings LLC | 3.800% | 3/15/22 | A– | 2,285,731 | |||||||||||||||
1,895 | NBC Universal Media LLC | 6.400% | 4/30/40 | A– | 2,362,388 | |||||||||||||||
1,925 | NBC Universal Media LLC | 4.450% | 1/15/43 | A– | 1,884,714 | |||||||||||||||
1,250 | Numericable Group SA, 144A | 6.000% | 5/15/22 | B+ | 1,212,500 | |||||||||||||||
1,635 | SES SA, 144A | 3.600% | 4/04/23 | BBB | 1,592,686 | |||||||||||||||
1,300 | Sinclair Television Group | 6.375% | 11/01/21 | B+ | 1,339,000 | |||||||||||||||
1,290 | Time Warner Inc. | 3.875% | 1/15/26 | BBB+ | 1,279,400 | |||||||||||||||
625 | Unitymedia KabelBW GmbH, 144A | 6.125% | 1/15/25 | B | 617,594 | |||||||||||||||
23,790 | Total Media | 24,427,177 |
Nuveen Investments | 45 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Metals & Mining – 3.3% | ||||||||||||||||||||
$ | 500 | Alcoa Inc., (3) | 5.400% | 4/15/21 | BBB– | $ | 486,250 | |||||||||||||
1,625 | Allegheny Technologies Inc. | 6.625% | 8/15/23 | BB– | 958,750 | |||||||||||||||
3,620 | Anglogold Holdings PLC | 6.500% | 4/15/40 | Baa3 | 2,407,300 | |||||||||||||||
1,090 | ArcelorMittal, (3) | 7.000% | 2/25/22 | BB+ | 877,450 | |||||||||||||||
1,000 | First Quantum Minerals Limited, 144A | 6.750% | 2/15/20 | BB– | 645,000 | |||||||||||||||
1,535 | Freeport McMoRan, Inc., (3) | 3.550% | 3/01/22 | BBB | 890,300 | |||||||||||||||
1,800 | Newmont Mining Corporation | 3.500% | 3/15/22 | BBB | 1,604,961 | |||||||||||||||
2,000 | Nucor Corporation | 4.000% | 8/01/23 | A– | 1,939,884 | |||||||||||||||
1,270 | Rio Tinto Finance USA PLC, (3) | 2.875% | 8/21/22 | A– | 1,151,931 | |||||||||||||||
1,350 | Teck Resources Limited, (3) | 3.750% | 2/01/23 | BB+ | 624,375 | |||||||||||||||
1,050 | Vale Overseas Limited, (3) | 4.375% | 1/11/22 | BBB | 794,670 | |||||||||||||||
1,075 | Xstrata Finance Canada Limited, 144A | 6.900% | 11/15/37 | BBB | 860,000 | |||||||||||||||
1,480 | Yamana Gold Inc. | 4.950% | 7/15/24 | Baa3 | 1,255,860 | |||||||||||||||
19,395 | Total Metals & Mining | 14,496,731 | ||||||||||||||||||
Multiline Retail – 0.3% | ||||||||||||||||||||
1,250 | Family Tree Escrow LLC, 144A, (3) | 5.250% | 3/01/20 | Ba3 | 1,290,625 | |||||||||||||||
Oil, Gas & Consumable Fuels – 6.0% | ||||||||||||||||||||
2,120 | Anadarko Petroleum Corporation | 6.200% | 3/15/40 | BBB | 1,950,402 | |||||||||||||||
1,570 | Apache Corporation | 4.250% | 1/15/44 | BBB+ | 1,256,502 | |||||||||||||||
1,750 | Baytex Energy Corporation | 6.625% | 7/19/22 | BB | 965,567 | |||||||||||||||
1,685 | Berkshire Hathaway Energy Company | 6.125% | 4/01/36 | A3 | 1,963,724 | |||||||||||||||
616 | California Resources Corporation, 144A, (3) | 8.000% | 12/15/22 | BB+ | 324,170 | |||||||||||||||
230 | California Resources Corporation, (3) | 5.500% | 9/15/21 | BB– | 72,450 | |||||||||||||||
1,150 | Calumet Specialty Products, (3) | 6.500% | 4/15/21 | B+ | 1,000,500 | |||||||||||||||
370 | Canadian Natural Resources Limited | 5.850% | 2/01/35 | BBB+ | 327,953 | |||||||||||||||
1,500 | Cenovus Energy Inc. | 3.800% | 9/15/23 | BBB | 1,358,814 | |||||||||||||||
606 | Chesapeake Energy Corporation, 144A | 8.000% | 12/15/22 | BB– | 296,940 | |||||||||||||||
2,000 | Continental Resources Inc., (3) | 5.000% | 9/15/22 | BBB– | 1,475,000 | |||||||||||||||
1,125 | EnLink Midstream Partners LP | 4.150% | 6/01/25 | BBB | 865,924 | |||||||||||||||
700 | Hess Corporation, (3) | 3.500% | 7/15/24 | BBB | 613,346 | |||||||||||||||
1,615 | Kinder Morgan Energy Partners, LP | 4.250% | 9/01/24 | BBB– | 1,374,832 | |||||||||||||||
1,000 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 880,000 | |||||||||||||||
1,470 | NGL Energy Partners LP/Fin Co | 5.125% | 7/15/19 | BB– | 1,161,300 | |||||||||||||||
630 | Petro Canada | 6.800% | 5/15/38 | A– | 688,862 | |||||||||||||||
1,150 | Reliance Holdings USA Inc., 144A | 5.400% | 2/14/22 | BBB+ | 1,244,231 | |||||||||||||||
500 | Sabine Pass Liquefaction LLC | 5.625% | 2/01/21 | BB+ | 460,000 | |||||||||||||||
1,645 | Southwestern Energy Company, (3) | 4.100% | 3/15/22 | BBB– | 1,034,639 | |||||||||||||||
1,560 | Spectra Energy Partners LP | 4.750% | 3/15/24 | BBB | 1,511,843 |
46 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 1,400 | Targa Resources Inc. | 4.250% | 11/15/23 | BB+ | $ | 1,078,000 | |||||||||||||
2,500 | Transocean Inc. | 4.300% | 10/15/22 | BB+ | 1,325,000 | |||||||||||||||
1,660 | Valero Energy Corporation | 3.650% | 3/15/25 | BBB | 1,566,590 | |||||||||||||||
1,380 | Woodside Finance Limtied, 144A | 3.650% | 3/05/25 | BBB+ | 1,223,215 | |||||||||||||||
31,932 | Total Oil, Gas & Consumable Fuels | 26,019,804 | ||||||||||||||||||
Paper & Forest Products – 0.9% | ||||||||||||||||||||
1,100 | Domtar Corporation | 4.400% | 4/01/22 | BBB– | 1,118,790 | |||||||||||||||
1,785 | Domtar Corporation, (3) | 6.750% | 2/15/44 | BBB– | 1,744,070 | |||||||||||||||
1,240 | Resolute Forest Products | 5.875% | 5/15/23 | BB– | 902,100 | |||||||||||||||
4,125 | Total Paper & Forest Products | 3,764,960 | ||||||||||||||||||
Personal Products – 0.7% | ||||||||||||||||||||
2,265 | International Paper Company | 8.700% | 6/15/38 | BBB | 2,914,477 | |||||||||||||||
Pharmaceuticals – 0.2% | ||||||||||||||||||||
1,000 | Endo Finance LLC / Endo Finco Inc., 144A, (3) | 6.000% | 2/01/25 | B1 | 985,000 | |||||||||||||||
Real Estate Investment Trust – 3.2% | ||||||||||||||||||||
2,780 | American Tower Company | 5.000% | 2/15/24 | BBB | 2,942,916 | |||||||||||||||
2,200 | Digital Realty Trust Inc. | 3.625% | 10/01/22 | BBB | 2,114,794 | |||||||||||||||
1,865 | Omega Healthcare Investors Inc. | 4.950% | 4/01/24 | BBB– | 1,883,661 | |||||||||||||||
1,815 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 1,817,169 | |||||||||||||||
1,200 | Plum Creek Timberlands LP | 4.700% | 3/15/21 | BBB | 1,276,732 | |||||||||||||||
2,315 | Realty Income Corporation | 3.250% | 10/15/22 | BBB+ | 2,234,929 | |||||||||||||||
1,670 | Vereit Operating Partner | 4.600% | 2/06/24 | BB+ | 1,582,325 | |||||||||||||||
13,845 | Total Real Estate Investment Trust | 13,852,526 | ||||||||||||||||||
Software – 1.1% | ||||||||||||||||||||
2,750 | Computer Sciences Corporation | 4.450% | 9/15/22 | BBB+ | 2,821,181 | |||||||||||||||
2,000 | Total System Services Inc. | 3.750% | 6/01/23 | BBB+ | 1,941,284 | |||||||||||||||
4,750 | Total Software | 4,762,465 | ||||||||||||||||||
Specialty Retail – 0.4% | ||||||||||||||||||||
1,255 | Bed Bath and Beyond Incorporated | 4.915% | 8/01/34 | A– | 1,119,046 | |||||||||||||||
500 | Guitar Center Inc., 144A | 6.500% | 4/15/19 | B– | 425,000 | |||||||||||||||
1,755 | Total Specialty Retail | 1,544,046 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.7% | ||||||||||||||||||||
2,685 | Hewlett Packard Enterprise Co, 144A, (3) | 4.900% | 10/15/25 | A– | 2,636,887 | |||||||||||||||
520 | NCR Corporation | 5.000% | 7/15/22 | BB | 504,400 | |||||||||||||||
3,205 | Total Technology Hardware, Storage & Peripherals | 3,141,287 | ||||||||||||||||||
Textiles, Apparel & Luxury Goods – 0.3% | ||||||||||||||||||||
1,200 | Levi Strauss & Company, (3) | 5.000% | 5/01/25 | BB | 1,194,000 |
Nuveen Investments | 47 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Trading Companies & Distributors – 0.4% | ||||||||||||||||||||
$ | 1,925 | Air Lease Corporation | 3.875% | 4/01/21 | BBB– | $ | 1,934,625 | |||||||||||||
Wireless Telecommunication Services – 0.9% | ||||||||||||||||||||
1,000 | ENTEL Chile SA, 144A | 4.750% | 8/01/26 | BBB+ | 935,557 | |||||||||||||||
1,100 | Millicom International Cellular SA, 144A | 6.625% | 10/15/21 | BB+ | 1,016,125 | |||||||||||||||
1,000 | Sprint Corporation | 7.250% | 9/15/21 | B+ | 745,000 | |||||||||||||||
1,325 | T-Mobile USA Inc. | 6.731% | 4/28/22 | BB | 1,381,313 | |||||||||||||||
4,425 | Total Wireless Telecommunication Services | 4,077,995 | ||||||||||||||||||
$ | 280,019 | Total Corporate Bonds (cost $280,567,164) | 272,008,179 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 4.9% | ||||||||||||||||||||
Banks – 1.5% | ||||||||||||||||||||
$ | 1,500 | HSBC Holdings PLC | 6.375% | N/A (4) | BBB | $ | 1,481,250 | |||||||||||||
1,525 | Nordea Bank AB, 144A | 6.125% | N/A (4) | BBB | 1,489,086 | |||||||||||||||
500 | Standard Chartered PLC, 144A, (3) | 6.500% | N/A (4) | BBB– | 483,091 | |||||||||||||||
1,485 | SunTrust Bank Inc., (3) | 5.625% | N/A (4) | Baa3 | 1,494,281 | |||||||||||||||
1,525 | Wachovia Capital Trust III | 5.570% | N/A (4) | BBB | 1,468,956 | |||||||||||||||
6,535 | Total Banks | 6,416,664 | ||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||
2,415 | Goldman Sachs Capital II | 4.000% | N/A (4) | Ba1 | 1,702,575 | |||||||||||||||
1,000 | UBS Group AG, Reg S | 7.125% | N/A (4) | BB+ | 1,047,176 | |||||||||||||||
3,415 | Total Capital Markets | 2,749,751 | ||||||||||||||||||
Consumer Finance – 0.2% | ||||||||||||||||||||
985 | American Express Company | 5.200% | N/A (4) | Baa2 | 972,688 | |||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||
1,035 | BNP Paribas, 144A | 7.375% | N/A (4) | BBB– | 1,062,169 | |||||||||||||||
Electric Utilities – 0.4% | ||||||||||||||||||||
1,785 | Electricite de France, 144A | 5.250% | N/A (4) | Baa1 | 1,677,900 | |||||||||||||||
Food Products – 0.3% | ||||||||||||||||||||
1,300 | Land O’ Lakes Incorporated, 144A | 8.000% | N/A (4) | BB | 1,350,375 | |||||||||||||||
Industrial Conglomerates – 0.4% | ||||||||||||||||||||
1,852 | General Electric Company, (3) | 4.000% | N/A (4) | AA– | 1,851,750 | |||||||||||||||
Insurance – 1.2% | ||||||||||||||||||||
1,000 | Allstate Corporation | 5.750% | 8/15/53 | Baa1 | 1,028,000 | |||||||||||||||
1,585 | Catlin Insurance Company Limited, 144A | 7.249% | N/A (4) | BBB+ | 1,260,075 | |||||||||||||||
1,395 | Principal Financial Group | 4.700% | 5/15/55 | Baa2 | 1,386,630 |
48 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Insurance (continued) | ||||||||||||||||||||
$ | 1,500 | Prudential Financial Inc. | 5.200% | 3/15/44 | BBB+ | $ | 1,448,250 | |||||||||||||
5,480 | Total Insurance | 5,122,955 | ||||||||||||||||||
$ | 22,387 | Total $1,000 Par (or similar) Institutional Preferred (cost $21,589,720) | 21,204,252 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 0.0% | ||||||||||||||||||||
$ | 65,000 | U.S. Treasury Notes | 2.250% | 11/15/25 | Aaa | $ | 64,854 | |||||||||||||
$ | 65,000 | Total U.S. Government and Agency Obligations (cost $64,726) | 64,854 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 28.9% | ||||||||||||||||||||
$ | 2,913 | 321 Henderson Receivables LLC, Series 2010-3A | 3.820% | 12/15/48 | Aaa | $ | 2,984,919 | |||||||||||||
1,250 | American Homes 4 Rent, Series 2014-SFR1 | 2.776% | 6/17/31 | Baa2 | 1,212,916 | |||||||||||||||
1,599 | American Homes 4 Rent, Series 2014-SFR2 | 3.786% | 10/17/36 | Aaa | 1,608,757 | |||||||||||||||
3,165 | AmeriCold LLC Trust, Series 2010 | 6.811% | 1/14/29 | A+ | 3,568,806 | |||||||||||||||
540 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.512% | 9/15/48 | A– | 520,877 | |||||||||||||||
345 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | 251,037 | |||||||||||||||
403 | Bank of America Funding Trust, Mortgage Pass-Through Certificates, Series 2007-4 | 5.500% | 6/25/37 | C | 92,328 | |||||||||||||||
1,100 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP | 4.284% | 9/10/28 | BBB– | 1,072,844 | |||||||||||||||
1,250 | Bayview Financial Mortgage Pass-Through Trust, Mortgage Pass-Through Certificate Series 2005-D | 5.500% | 12/28/35 | BB+ | 1,233,054 | |||||||||||||||
750 | CarFinance Capital Auto Trust, Automobile Receivables-Backed Notes, | 3.450% | 3/15/19 | Aa3 | 755,851 | |||||||||||||||
1,785 | Commercial Mortgage Pass-Through Certificates 2015-CR22 | 4.127% | 3/10/48 | A– | 1,695,877 | |||||||||||||||
2,000 | Commercial Mortgage Pass-Through Certificates, Series 2014-SAVA | 2.826% | 6/15/34 | A | 1,991,810 | |||||||||||||||
1,305 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.495% | 10/10/48 | A– | 1,232,940 | |||||||||||||||
117 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, | 6.000% | 2/25/34 | A+ | 121,030 | |||||||||||||||
1,034 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, | 6.000% | 8/25/36 | Caa3 | 944,443 | |||||||||||||||
866 | Countrywide Home Loan Mortgage Pass-Through Trust, Series 2004-2 | 2.438% | 2/25/34 | BB+ | 835,178 | |||||||||||||||
165 | Countrywide Home Loans, Asset-Backed Certificates, Series 2003-SC1 | 2.677% | 9/25/23 | Baa3 | 163,808 | |||||||||||||||
1,095 | Credit Suisse Commercial Mortgage Trust, 2014-ICE | 1.976% | 4/15/27 | A– | 1,083,004 | |||||||||||||||
2,274 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-8 | 6.187% | 4/25/33 | A | 2,260,246 | |||||||||||||||
76 | Fannie Mae Mortgage Pool 250551 | 7.000% | 5/01/26 | Aaa | 87,490 | |||||||||||||||
323 | Fannie Mae Mortgage Pool 252255 | 6.500% | 2/01/29 | Aaa | 368,780 |
Nuveen Investments | 49 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 539 | Fannie Mae Mortgage Pool 254169 | 6.500% | 12/01/31 | Aaa | $ | 623,046 | |||||||||||||
556 | Fannie Mae Mortgage Pool 254379 | 7.000% | 7/01/32 | Aaa | 644,535 | |||||||||||||||
418 | Fannie Mae Mortgage Pool 254513 | 6.000% | 10/01/22 | Aaa | 471,559 | |||||||||||||||
1,130 | Fannie Mae Mortgage Pool 255575 | 5.500% | 1/01/25 | Aaa | 1,257,945 | |||||||||||||||
201 | Fannie Mae Mortgage Pool 256845 | 6.500% | 8/01/37 | Aaa | 230,124 | |||||||||||||||
725 | Fannie Mae Mortgage Pool 256852 | 6.000% | 8/01/27 | Aaa | 818,195 | |||||||||||||||
268 | Fannie Mae Mortgage Pool 256890 | 6.000% | 9/01/37 | Aaa | 293,995 | |||||||||||||||
66 | Fannie Mae Mortgage Pool 340798 | 7.000% | 4/01/26 | Aaa | 72,373 | |||||||||||||||
91 | Fannie Mae Mortgage Pool 545359 | 2.568% | 3/01/31 | Aaa | 94,610 | |||||||||||||||
197 | Fannie Mae Mortgage Pool 545813 | 7.000% | 7/01/32 | Aaa | 236,224 | |||||||||||||||
125 | Fannie Mae Mortgage Pool 545815 | 7.000% | 7/01/32 | Aaa | 149,321 | |||||||||||||||
767 | Fannie Mae Mortgage Pool 555798 | 6.500% | 5/01/33 | Aaa | 883,566 | |||||||||||||||
1,262 | Fannie Mae Mortgage Pool 555843 | 2.362% | 8/01/30 | Aaa | 1,304,325 | |||||||||||||||
8 | Fannie Mae Mortgage Pool 591038 | 7.000% | 8/01/16 | Aaa | 8,157 | |||||||||||||||
142 | Fannie Mae Mortgage Pool 673010 | 5.500% | 12/01/17 | Aaa | 145,684 | |||||||||||||||
963 | Fannie Mae Mortgage Pool 688330 | 6.000% | 3/01/33 | Aaa | 1,103,586 | |||||||||||||||
1,861 | Fannie Mae Mortgage Pool 709446 | 5.500% | 7/01/33 | Aaa | 2,114,584 | |||||||||||||||
216 | Fannie Mae Mortgage Pool 725553 | 2.379% | 9/01/33 | Aaa | 228,607 | |||||||||||||||
1,170 | Fannie Mae Mortgage Pool 735054 | 1.926% | 11/01/34 | Aaa | 1,221,452 | |||||||||||||||
1,382 | Fannie Mae Mortgage Pool 735273 | 6.500% | 6/01/34 | Aaa | 1,616,576 | |||||||||||||||
547 | Fannie Mae Mortgage Pool 745101 | 6.000% | 4/01/32 | Aaa | 609,739 | |||||||||||||||
166 | Fannie Mae Mortgage Pool 781776 | 6.000% | 10/01/34 | Aaa | 188,728 | |||||||||||||||
536 | Fannie Mae Mortgage Pool 885536 | 6.000% | 8/01/36 | Aaa | 612,237 | |||||||||||||||
643 | Fannie Mae Mortgage Pool 900555 | 6.000% | 9/01/36 | Aaa | 737,366 | |||||||||||||||
2,171 | Fannie Mae Mortgage Pool 932323 | 4.500% | 12/01/39 | Aaa | 2,349,450 | |||||||||||||||
— | (5) | Fannie Mae Mortgage Pool 983077 | 5.000% | 5/01/38 | Aaa | 242 | ||||||||||||||
— | (5) | Fannie Mae Mortgage Pool 985344 | 5.500% | 7/01/38 | Aaa | 133 | ||||||||||||||
3,562 | Fannie Mae Mortgage Pool AB1959 | 4.000% | 12/01/40 | Aaa | 3,777,804 | |||||||||||||||
2,876 | Fannie Mae Mortgage Pool AC1877 | 4.500% | 9/01/39 | Aaa | 3,112,029 | |||||||||||||||
3,400 | Fannie Mae Mortgage Pool AD4375 | 5.000% | 5/01/40 | Aaa | 3,747,494 | |||||||||||||||
4,680 | Fannie Mae Mortgage Pool AE7265 | 4.000% | 1/01/41 | Aaa | 4,963,778 | |||||||||||||||
1,323 | Fannie Mae Mortgage Pool AL0160 | 4.500% | 5/01/41 | Aaa | 1,431,781 | |||||||||||||||
1,108 | Fannie Mae Mortgage Pool MA1028 | 4.000% | 4/01/42 | Aaa | 1,175,217 | |||||||||||||||
4 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1988-24 G | 7.000% | 10/25/18 | Aaa | 4,406 | |||||||||||||||
2 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1989-44 H | 9.000% | 7/25/19 | Aaa | 2,633 | |||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1989-90 E | 8.700% | 12/25/19 | Aaa | 944 |
50 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 8 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1990-102 J | 6.500% | 8/25/20 | Aaa | $ | 8,826 | |||||||||||||
60 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1990-105 J | 6.500% | 9/25/20 | Aaa | 63,676 | |||||||||||||||
2 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1990-30 E | 6.500% | 3/25/20 | Aaa | 2,165 | |||||||||||||||
6 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1990-61 H | 7.000% | 6/25/20 | Aaa | 6,365 | |||||||||||||||
6 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1990-72 B | 9.000% | 7/25/20 | Aaa | 6,159 | |||||||||||||||
41 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1991-134 Z | 7.000% | 10/25/21 | Aaa | 44,071 | |||||||||||||||
24 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1991-56 M | 6.750% | 6/25/21 | Aaa | 25,287 | |||||||||||||||
5 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1992-120 C | 6.500% | 7/25/22 | Aaa | 5,241 | |||||||||||||||
207 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1996-35 Z | 7.000% | 7/25/26 | Aaa | 230,687 | |||||||||||||||
907 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 2005-62 JE | 5.000% | 6/25/35 | Aaa | 994,128 | |||||||||||||||
884 | Fannie Mae REMIC Pass-Through Certificates 2003-W1 B1 | 4.196% | 12/25/42 | AAA | 541,911 | |||||||||||||||
1,000 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 5.000% | TBA | Aaa | 1,100,579 | |||||||||||||||
2,235 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 4.000% | TBA | Aaa | 2,364,430 | |||||||||||||||
8,910 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 3.500% | TBA | Aaa | 9,189,738 | |||||||||||||||
7,025 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 3.000% | TBA | Aaa | 7,022,556 | |||||||||||||||
1,649 | Fannie Mae, Connecticut Avenue Securities Series 2014-C01 | 2.027% | 1/25/24 | AA+ | 1,651,430 | |||||||||||||||
1,380 | Fannie Mae, Connecticut Avenue Securities, Series 2015-C03 | 5.427% | 7/25/25 | Aaa | 1,372,891 | |||||||||||||||
6 | Federal Home Loan Mortgage Corporation, REMIC 1022 J | 6.000% | 12/15/20 | Aaa | 6,371 | |||||||||||||||
15 | Federal Home Loan Mortgage Corporation, REMIC 1118 Z | 8.250% | 7/15/21 | Aaa | 16,177 | |||||||||||||||
12 | Federal Home Loan Mortgage Corporation, REMIC 162 F | 7.000% | 5/15/21 | Aaa | 12,424 | |||||||||||||||
8 | Federal Home Loan Mortgage Corporation, REMIC 1790 A | 7.000% | 4/15/22 | Aaa | 8,375 | |||||||||||||||
42 | Federal Home Loan Mortgage Corporation, REMIC 188 H | 7.000% | 9/15/21 | Aaa | 45,599 | |||||||||||||||
217 | Federal Home Loan Mortgage Corporation, REMIC 2704 JF | 0.977% | 5/15/23 | Aaa | 217,735 | |||||||||||||||
456 | Federal Home Loan Mortgage Corporation, REMIC 3591 FP | 1.027% | 6/15/39 | Aaa | 459,577 | |||||||||||||||
1 | Federal Home Loan Mortgage Corporation, REMIC 6 C | 9.050% | 6/15/19 | Aaa | 1,317 | |||||||||||||||
1,839 | Freddie Mac Gold Pool 1G2163 | 2.470% | 9/01/37 | Aaa | 1,947,416 | |||||||||||||||
299 | Freddie Mac Gold Pool 846984 | 2.094% | 6/01/31 | Aaa | 313,957 | |||||||||||||||
441 | Freddie Mac Gold Pool 847180 | 2.524% | 3/01/30 | Aaa | 456,102 | |||||||||||||||
283 | Freddie Mac Gold Pool 847190 | 2.563% | 4/01/29 | Aaa | 295,725 | |||||||||||||||
398 | Freddie Mac Gold Pool 847240 | 2.478% | 7/01/30 | Aaa | 413,731 | |||||||||||||||
307 | Freddie Mac Mortgage Pool, Various A15521 | 6.000% | 11/01/33 | Aaa | 348,468 |
Nuveen Investments | 51 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 499 | Freddie Mac Mortgage Pool, Various A17212 | 6.500% | 7/01/31 | Aaa | $ | 576,359 | |||||||||||||
314 | Freddie Mac Mortgage Pool, Various C00676 | 6.500% | 11/01/28 | Aaa | 361,208 | |||||||||||||||
119 | Freddie Mac Mortgage Pool, Various H09059 | 7.000% | 8/01/37 | Aaa | 130,206 | |||||||||||||||
86 | Freddie Mac Mortgage Pool, Various P10023 | 4.500% | 3/01/18 | Aaa | 86,224 | |||||||||||||||
305 | Freddie Mac Mortgage Pool, Various P10032 | 4.500% | 5/01/18 | Aaa | 311,915 | |||||||||||||||
1,000 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2012-K711 | 3.684% | 8/25/45 | Aaa | 1,011,389 | |||||||||||||||
1,315 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2013-K712 | 3.484% | 5/25/45 | Aaa | 1,319,400 | |||||||||||||||
52 | Freddie Mac Non Gold Participation Certificates | 2.459% | 5/01/25 | Aaa | 54,624 | |||||||||||||||
2,500 | Ginnie Mae Mortgage Pool, (WI/DD) | 4.000% | TBA | Aaa | 2,654,221 | |||||||||||||||
522 | Goldman Sachs Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2005-RP2 1A2 | 7.500% | 3/25/35 | B1 | 573,681 | |||||||||||||||
571 | Goldman Sachs Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2005-RP3 1A2 | 7.500% | 9/25/35 | B1 | 630,975 | |||||||||||||||
1,570 | Goldman Sachs Mortgage Securities Trust, Mortgage Pass-Through Certificates, Series 2015-GC32 | 3.345% | 7/10/48 | BBB– | 1,143,529 | |||||||||||||||
3,667 | Government National Mortgage Association Pool 4946 | 4.500% | 2/20/41 | Aaa | 3,993,728 | |||||||||||||||
127 | Government National Mortgage Association Pool 537699 | 7.500% | 11/15/30 | Aaa | 141,632 | |||||||||||||||
— | (5) | Government National Mortgage Association Pool 8259 | 1.875% | 8/20/23 | Aaa | 478 | ||||||||||||||
2,000 | Green Tree Agency Advance Funding Trust, Manufactured Housing Contract Pass-Through Certificates, Series 2015-T2 | 3.687% | 10/15/48 | AA | 1,978,900 | |||||||||||||||
621 | IndyMac INDX Mortgage Loan Trust, Pass-Through Certificates, Series 2005-AR1 | 2.535% | 3/25/35 | BBB+ | 618,290 | |||||||||||||||
3,090 | Invitation Homes Trust 2014-SFR1 | 3.026% | 6/17/31 | Baa2 | 3,044,849 | |||||||||||||||
630 | JP Morgan Chase Commercial Mortgage Securities Trust, Pass-Through Certificates 2015-C29 | 3.842% | 5/15/48 | BBB– | 470,257 | |||||||||||||||
359 | Lehman Mortgage Trust, Mortgage Pass-Through Certificates, Series 2008-6 | 5.254% | 7/25/47 | BB+ | 362,122 | |||||||||||||||
1,444 | Master Resecuritization Trust 2009-1 | 6.000% | 10/25/36 | A | 1,509,476 | |||||||||||||||
1,693 | Mid-State Capital Corporation Trust Notes, Series 2005-1 | 5.745% | 1/15/40 | AA | 1,816,160 | |||||||||||||||
1,250 | ML_CFC Commercial Mortgage Trust, Pass-Through Certificates, Series 2007-8 | 5.887% | 8/12/49 | BB | 1,281,446 | |||||||||||||||
895 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22 | 4.385% | 4/15/48 | BBB– | 726,526 | |||||||||||||||
524 | Mortgage Asset Securitization Transaction Inc., Alternative Loan Trust Mortgage Pass-Through Certificates Series 2004-1 | 7.000% | 1/25/34 | BBB– | 541,551 | |||||||||||||||
1,309 | RBSSP Resecuritization Trust, Series 2012-8 1A1 | 0.525% | 10/26/36 | N/R | 1,265,297 | |||||||||||||||
199 | Structured Adjustable Rate Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2004-11 | 2.621% | 8/25/34 | N/R | 197,715 | |||||||||||||||
61 | U.S. Small Business Administration Guaranteed Participating Securities Participation Certificates, Series 2006-P10B | 5.681% | 8/10/16 | Aaa | 62,393 | |||||||||||||||
4,219 | United States Department of Veterans, Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, Series 2011-1 | 3.750% | 2/15/35 | Aaa | 4,418,262 |
52 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,363 | Wachovia Mortgage Loan Trust LLC, Mortgage Pass-Through Certificates, Series 2005-B | 2.772% | 10/20/35 | D | $ | 2,056,122 | |||||||||||||
1,571 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage-Pass-Through Certificates, Series 2015-C26 | 3.586% | 2/15/48 | BBB– | 1,168,324 | |||||||||||||||
526 | Wells Fargo Mortgage Backed Securities Trust, Mortgage Pass-Through Certificate Series 2007-2 | 5.750% | 3/25/37 | Caa2 | 511,382 | |||||||||||||||
626 | Wells Fargo-RBS Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-C15 | 4.629% | 8/15/46 | BBB– | 575,189 | |||||||||||||||
$ | 122,161 | Total Asset-Backed and Mortgage-Backed Securities (cost $121,307,123) |
| 125,085,384 | ||||||||||||||||
Principal Amount (000) (6) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 2.7% | ||||||||||||||||||||
Costa Rica – 0.2% | ||||||||||||||||||||
$ | 1,000 | Republic of Costa Rica, 144A | 7.000% | 4/04/44 | Ba1 | $ | 833,750 | |||||||||||||
Indonesia – 0.2% | ||||||||||||||||||||
1,000 | Republic of Indonesia, 144A, (3) | 4.750% | 1/08/26 | Baa3 | 987,662 | |||||||||||||||
Mexico – 1.0% | ||||||||||||||||||||
351 | MXN | Mexico Bonos de DeSarrollo | 8.500% | 12/13/18 | A | 2,240,376 | ||||||||||||||
343 | MXN | Mexico Bonos de DeSarrollo | 8.000% | 12/07/23 | A | 2,227,549 | ||||||||||||||
Total Mexico | 4,467,925 | |||||||||||||||||||
South Africa – 1.1% | ||||||||||||||||||||
3,365 | Republic of South Africa, (3) | 5.875% | 9/16/25 | Baa2 | 3,439,736 | |||||||||||||||
24,115 | ZAR | Republic of South Africa | 7.000% | 2/28/31 | Baa2 | 1,187,590 | ||||||||||||||
Total South Africa | 4,627,326 | |||||||||||||||||||
Sri Lanka – 0.2% | ||||||||||||||||||||
1,000 | Republic of Sri Lanka, (3) | 6.850% | 11/03/25 | BB– | 941,977 | |||||||||||||||
Total Sovereign Debt (cost $14,153,373) |
| 11,858,640 | ||||||||||||||||||
Total Long-Term Investments (cost $437,682,106) |
| 430,221,309 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 9.3% |
| |||||||||||||||||||
Money Market Funds – 9.3% | ||||||||||||||||||||
40,469,109 | Mount Vernon Securities Lending Trust Prime Portfolio, (8) | 0.108% (7) | $ | 40,469,109 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $40,469,109) |
| 40,469,109 |
Nuveen Investments | 53 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1) | Coupon | Value | |||||||||||||
SHORT-TERM INVESTMENTS – 5.8% | ||||||||||||||||
Money Market Funds – 5.8% | ||||||||||||||||
24,964,422 | First American Treasury Obligations Fund, Class Z | 0.473% (7) | $ | 24,964,422 | ||||||||||||
Total Short-Term Investments (cost $24,964,422) | 24,964,422 | |||||||||||||||
Total Investments (cost $503,115,637) – 114.3% | 495,654,840 | |||||||||||||||
Other Assets Less Liabilities – (14.3)% (9) | (62,118,540 | ) | ||||||||||||||
Net Assets – 100% | $ | 433,536,300 |
Investments in Derivatives as of December 31, 2015
Forward Foreign Currency Exchange Contracts outstanding:
Counterparty | Currency Contracts to Deliver | Notional Amount (Local Currency) | In Exchange For Currency | Notional Amount (Local Currency) | Settlement Date | Unrealized Appreciation Depreciation) (U.S. Dollars) | ||||||||||||||||
Bank of America, N.A. | Mexican Peso | 78,470,000 | U.S. Dollar | 4,591,843 | 1/29/16 | $ | 48,589 | |||||||||||||||
Goldman Sacks Bank USA | Canadian Dollar | 1,516,000 | U.S. Dollar | 1,121,302 | 1/29/16 | 25,620 | ||||||||||||||||
Goldman Sacks Bank USA | U.S. Dollar | 130,447 | Canadian Dollar | 181,000 | 1/29/16 | 370 | ||||||||||||||||
Nomura International PLC | South African Rand | 67,000,000 | U.S. Dollar | 4,573,753 | 1/29/16 | 264,881 | ||||||||||||||||
Nomura International PLC | U.S. Dollar | 1,267,082 | South African Rand | 20,120,000 | 1/29/16 | 26,866 | ||||||||||||||||
Nomura International PLC | U.S. Dollar | 1,823,009 | South African Rand | 28,941,000 | 1/29/16 | 38,231 | ||||||||||||||||
$ | 404,557 |
Interest Rate Swaps outstanding:
Counterparty | Notional Amount | Fund Pay/ Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Termination Date | Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | $ | 12,000,000 | | | Receive | | | 3-Month USD- LIBOR-ICE | | | 2.078 | % | | Semi- Annually | | | 2/19/23 | | $ | (187,101 | ) | | N/A | | $ | (187,101 | ) | |||||||||
Morgan Stanley & | | 18,000,000 | | | Receive | | | 3-Month USD- LIBOR-ICE | | | 2.743 | | | Semi- Annually | | | 4/15/24 | | | (1,009,753 | ) | | 951,520 | | | (1,009,753 | ) | |||||||||
$ | 30,000,000 | $ | (1,196,854 | ) | $ | 951,520 | $ | (1,196,854 | ) |
* | Citigroup Global Markets Inc. is the clearing broker for this transactions. |
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value** | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (76 | ) | 3/16 | $ | (8,992,344 | ) | $ | (10,687 | ) | $ | 29,505 | ||||||||||||
U.S. Treasury 10-Year Note | Short | (273 | ) | 3/16 | (34,372,406 | ) | (81,047 | ) | 81,938 | |||||||||||||||
U.S. Treasury Long Bond | Short | (13 | ) | 3/16 | (1,998,750 | ) | (6,500 | ) | 23,937 | |||||||||||||||
U.S. Treasury Ultra Bond | Long | 19 | 3/16 | 3,015,062 | 19,000 | 20,704 | ||||||||||||||||||
$ | (42,348,438 | ) | $ | (79,234 | ) | $ | 156,084 |
** | Total aggregate Notional Amount at Value of long and short positions is $3,015,062 and $(45,363,500), respectively. |
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 Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a 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 $38,972,483. |
(4) | Perpetual security. Maturity date is not applicable. |
(5) | Principal Amount (000) rounds to less than $1,000. |
(6) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(7) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(8) | 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 100% 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. |
(9) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities. |
N/A | Not applicable. |
GDR | Global Depositary Receipt. |
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. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
MXN | Mexican Peso |
ZAR | South African Rand |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
USD-LIBOR-ICE | United States Dollar-London Inter-Bank Offered Rate Intercontinental Exchange. |
(WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
Nuveen Investments | 55 |
Nuveen Inflation Protected Securities Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
LONG-TERM INVESTMENTS – 98.8% | ||||||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.1% | ||||||||||||||||||||
Banks – 0.1% | ||||||||||||||||||||
200 | Bank of America Corporation | 7.250% | BB+ | $ | 218,654 | |||||||||||||||
Total Convertible Preferred Securities (cost $174,350) | 218,654 | |||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.1% | ||||||||||||||||||||
Capital Markets – 0.1% | ||||||||||||||||||||
15,000 | UBS Preferred Funding Trust IV | 1.122% | BB+ | $ | 293,250 | |||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $241,200) | 293,250 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 5.8% | ||||||||||||||||||||
Airlines – 0.1% | ||||||||||||||||||||
$ | 437 | American Airlines Inc., Pass-Through Trust 2013-2B, 144A | 5.600% | 7/15/20 | BBB– | $ | 445,339 | |||||||||||||
Auto Components – 0.2% | ||||||||||||||||||||
300 | American & Axle Manufacturing Inc., (3) | 6.625% | 10/15/22 | BB– | 314,250 | |||||||||||||||
300 | Tenneco Inc. | 5.375% | 12/15/24 | BB+ | 304,500 | |||||||||||||||
600 | Total Auto Components | 618,750 | ||||||||||||||||||
Automobiles – 0.1% | ||||||||||||||||||||
465 | General Motors Corporation | 4.000% | 4/01/25 | BBB– | 440,524 | |||||||||||||||
Banks – 0.1% | ||||||||||||||||||||
385 | CIT Group Inc., 144A, (3) | 5.500% | 2/15/19 | BB+ | 402,325 | |||||||||||||||
170 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 172,550 | |||||||||||||||
555 | Total Banks | 574,875 | ||||||||||||||||||
Building Products – 0.1% | ||||||||||||||||||||
300 | Hardwoods Acquisition Inc., 144A | 7.500% | 8/01/21 | B | 247,500 | |||||||||||||||
250 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB– | 250,304 | |||||||||||||||
550 | Total Building Products | 497,804 | ||||||||||||||||||
Chemicals – 0.1% | ||||||||||||||||||||
250 | Hexion Inc. | 6.625% | 4/15/20 | B3 | 195,625 | |||||||||||||||
250 | NOVA Chemicals Corporation, 144A, (3) | 5.250% | 8/01/23 | BBB– | 247,500 | |||||||||||||||
500 | Total Chemicals | 443,125 | ||||||||||||||||||
Commercial Services & Supplies – 0.3% | ||||||||||||||||||||
250 | Clean Harbors Inc. | 5.250% | 8/01/20 | BB+ | 255,000 | |||||||||||||||
547 | Covanta Energy Corporation, Synthetic Letter of Credit | 6.375% | 10/01/22 | Ba3 | 544,265 |
56 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Commercial Services & Supplies (continued) | ||||||||||||||||||||
$ | 500 | R.R. Donnelley & Sons Company, (3) | 7.625% | 6/15/20 | BB– | $ | 515,575 | |||||||||||||
1,297 | Total Commercial Services & Supplies | 1,314,840 | ||||||||||||||||||
Construction & Engineering – 0.1% | ||||||||||||||||||||
500 | AECOM Technology Corporation | 5.750% | 10/15/22 | BB– | 515,000 | |||||||||||||||
Construction Materials – 0.2% | ||||||||||||||||||||
300 | Cemex SAB de CV, 144A, (3) | 5.700% | 1/11/25 | BB– | 250,875 | |||||||||||||||
380 | Norbord Inc., 144A | 5.375% | 12/01/20 | Ba2 | 380,000 | |||||||||||||||
680 | Total Construction Materials | 630,875 | ||||||||||||||||||
Containers & Packaging – 0.0% | ||||||||||||||||||||
175 | Graphic Packaging International Inc. | 4.875% | 11/15/22 | BB+ | 177,188 | |||||||||||||||
Diversified Financial Services – 0.1% | ||||||||||||||||||||
225 | Nationstar Mortgage LLC Capital Corporation | 7.875% | 10/01/20 | B+ | 215,325 | |||||||||||||||
Diversified Telecommunication Services – 0.9% | ||||||||||||||||||||
200 | CenturyLink Inc. | 6.750% | 12/01/23 | BB+ | 187,500 | |||||||||||||||
250 | CyrusOne LP Finance | 6.375% | 11/15/22 | B+ | 257,500 | |||||||||||||||
3,060 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 3,049,356 | |||||||||||||||
3,510 | Total Diversified Telecommunication Services | 3,494,356 | ||||||||||||||||||
Energy Equipment & Services – 0.1% | ||||||||||||||||||||
500 | Regency Energy Partners Finance | 6.500% | 7/15/21 | BBB– | 502,500 | |||||||||||||||
Food Products – 0.1% | ||||||||||||||||||||
200 | JBS Investments GmbH, 144A | 7.250% | 4/03/24 | BB+ | 181,500 | |||||||||||||||
300 | Pilgrim’s Pride Corporation, 144A | 5.750% | 3/15/25 | BB+ | 291,750 | |||||||||||||||
500 | Total Food Products | 473,250 | ||||||||||||||||||
Health Care Providers & Services – 1.0% | ||||||||||||||||||||
1,700 | Catholic Health Initiatives | 1.600% | 11/01/17 | A+ | 1,696,656 | |||||||||||||||
200 | Community Health Systems, Inc. | 5.125% | 8/01/21 | BB | 199,000 | |||||||||||||||
500 | HCA Inc., (3) | 4.250% | 10/15/19 | BBB– | 510,000 | |||||||||||||||
1,715 | Mayo Clinic Rochester | 3.774% | 11/15/43 | AA | 1,593,436 | |||||||||||||||
4,115 | Total Health Care Providers & Services | 3,999,092 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||
400 | Wynn Macau Limited, 144A | 5.250% | 10/15/21 | Ba2 | 352,000 | |||||||||||||||
Household Durables – 0.3% | ||||||||||||||||||||
450 | Brookfield Residential Properties Inc., 144A | 6.500% | 12/15/20 | BB– | 433,687 | |||||||||||||||
250 | CalAtlantic Group Inc. | 5.875% | 11/15/24 | BB | 261,250 | |||||||||||||||
400 | Rialto Holdings LLC-Rialto Corporation, 144A | 7.000% | 12/01/18 | B | 406,000 | |||||||||||||||
1,100 | Total Household Durables | 1,100,937 |
Nuveen Investments | 57 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||
$ | 275 | AES Corporation | 7.375% | 7/01/21 | BB | $ | 280,500 | |||||||||||||
500 | Calpine Corporation | 5.375% | 1/15/23 | BB– | 448,750 | |||||||||||||||
775 | Total Independent Power & Renewable Electricity Producers | 729,250 | ||||||||||||||||||
Media – 0.6% | ||||||||||||||||||||
400 | Altice S.A, 144A | 7.750% | 5/15/22 | B | 361,000 | |||||||||||||||
200 | Charter Communications, CCO Holdings LLC, (3) | 5.125% | 2/15/23 | BB– | 200,250 | |||||||||||||||
225 | CSC Holdings Inc. | 8.625% | 2/15/19 | BB | 239,625 | |||||||||||||||
300 | Dish DBS Corporation | 4.250% | 4/01/18 | BB– | 300,750 | |||||||||||||||
400 | Numericable Group SA, 144A | 4.875% | 5/15/19 | B+ | 396,500 | |||||||||||||||
200 | Numericable Group SA, 144A | 6.000% | 5/15/22 | B+ | 194,000 | |||||||||||||||
350 | Sinclair Television Group | 6.375% | 11/01/21 | B+ | 360,500 | |||||||||||||||
195 | WMG Acquisition Group, 144A | 6.000% | 1/15/21 | B1 | 195,975 | |||||||||||||||
2,270 | Total Media | 2,248,600 | ||||||||||||||||||
Metals & Mining – 0.1% | ||||||||||||||||||||
250 | ArcelorMittal, (3) | 7.000% | 2/25/22 | BB+ | 201,250 | |||||||||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||
215 | Calumet Specialty Products, (3) | 7.625% | 1/15/22 | B+ | 182,750 | |||||||||||||||
300 | Rose Rock Midstream LP / Rose Rock Finance Corporation | 5.625% | 7/15/22 | B1 | 213,000 | |||||||||||||||
150 | Targa Resources Inc. | 4.250% | 11/15/23 | BB+ | 115,500 | |||||||||||||||
665 | Total Oil, Gas & Consumable Fuels | 511,250 | ||||||||||||||||||
Personal Products – 0.1% | ||||||||||||||||||||
200 | Albea Beauty Holdings SA, 144A | 8.375% | 11/01/19 | B | 208,000 | |||||||||||||||
Real Estate Investment Trust – 0.0% | ||||||||||||||||||||
200 | Gaming and Leisure Products Inc., GLP Capital LP Financing II Inc., (3) | 4.375% | 11/01/18 | BBB– | 198,000 | |||||||||||||||
Road & Rail – 0.0% | ||||||||||||||||||||
175 | Hertz Corporation, (3) | 7.375% | 1/15/21 | B | 181,563 | |||||||||||||||
Specialty Retail – 0.2% | ||||||||||||||||||||
420 | Best Buy Co., Inc. | 5.500% | 3/15/21 | Baa1 | 434,700 | |||||||||||||||
475 | The Men’s Warehouse Inc. | 7.000% | 7/01/22 | B2 | 337,250 | |||||||||||||||
895 | Total Specialty Retail | 771,950 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.1% | ||||||||||||||||||||
500 | NCR Corporation | 5.000% | 7/15/22 | BB | 485,000 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.1% | ||||||||||||||||||||
300 | Levi Strauss & Company, (3) | 5.000% | 5/01/25 | BB | 298,500 | |||||||||||||||
Wireless Telecommunication Services – 0.4% | ||||||||||||||||||||
200 | Altice Financing SA, 144A | 6.625% | 2/15/23 | BB– | 197,500 | |||||||||||||||
200 | Millicom International Cellular SA, 144A | 6.625% | 10/15/21 | BB+ | 184,750 |
58 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Wireless Telecommunication Services (continued) | ||||||||||||||||||||
$ | 200 | Softbank Corporation, 144A, (3) | 4.500% | 4/15/20 | BB+ | $ | 199,000 | |||||||||||||
200 | Sprint Communications Inc., 144A | 7.000% | 3/01/20 | BB | 200,500 | |||||||||||||||
400 | Telecom Italia SpA, 144A | 5.303% | 5/30/24 | BBB– | 395,000 | |||||||||||||||
400 | T-Mobile USA Inc. | 6.731% | 4/28/22 | BB | 417,000 | |||||||||||||||
1,600 | Total Wireless Telecommunication Services | 1,593,750 | ||||||||||||||||||
$ | 23,939 | Total Corporate Bonds (cost $24,413,229) | 23,222,893 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 0.0% | ||||||||||||||||||||
Capital Markets – 0.0% | ||||||||||||||||||||
$ | 200 | Goldman Sachs Capital II | 4.000% | N/A (4) | Ba1 | $ | 141,000 | |||||||||||||
$ | 200 | Total $1,000 Par (or similar) Institutional Preferred (cost $162,451) | 141,000 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.5% | ||||||||||||||||||||
Maryland – 0.3% | ||||||||||||||||||||
$ | 1,250 | Baltimore County, Maryland, General Obligation Bonds, Taxable Series 2012, 0.951%, 8/01/17 | No Opt. Call | AAA | $ | 1,247,238 | ||||||||||||||
Ohio – 0.2% | ||||||||||||||||||||
820 | Hamilton County, Ohio, Sewer System Revenue Bonds, Metropolitan Sewer District of Greater Cincinnati, Refunding Series 2013B, 1.233%, 12/01/16 | No Opt. Call | AA+ | 822,861 | ||||||||||||||||
$ | 2,070 | Total Municipal Bonds (cost $2,070,000) | 2,070,099 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 88.2% | ||||||||||||||||||||
$ | 5,896 | U.S. Treasury Bonds | 3.875% | 4/15/29 | Aaa | $ | 7,993,519 | |||||||||||||
2,330 | U.S. Treasury Bonds | 2.500% | 2/15/45 | Aaa | 2,086,268 | |||||||||||||||
20,686 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/17 | Aaa | 20,639,871 | |||||||||||||||
16,961 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/18 | Aaa | 16,921,020 | |||||||||||||||
3,971 | U.S. Treasury Inflation Indexed Obligations | 2.125% | 1/15/19 | Aaa | 4,199,971 | |||||||||||||||
13,616 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/19 | Aaa | 13,527,727 | |||||||||||||||
5,015 | U.S. Treasury Inflation Indexed Obligations | 1.375% | 1/15/20 | Aaa | 5,209,459 | |||||||||||||||
14,066 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/20 | Aaa | 13,876,906 | |||||||||||||||
11,664 | U.S. Treasury Inflation Indexed Obligations | 1.250% | 7/15/20 | Aaa | 12,118,703 | |||||||||||||||
20,766 | U.S. Treasury Inflation Indexed Obligations | 1.125% | 1/15/21 | Aaa | 21,388,658 | |||||||||||||||
12,146 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 7/15/21 | Aaa | 12,212,700 | |||||||||||||||
29,948 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/22 | Aaa | 28,987,086 |
Nuveen Investments | 59 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued) | ||||||||||||||||||||
$ | 13,848 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/22 | Aaa | $ | 13,410,322 | |||||||||||||
20,727 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/23 | Aaa | 19,844,997 | |||||||||||||||
19,960 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/23 | Aaa | 19,470,289 | |||||||||||||||
19,337 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 1/15/24 | Aaa | 19,088,142 | |||||||||||||||
13,647 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/24 | Aaa | 12,940,119 | |||||||||||||||
9,993 | U.S. Treasury Inflation Indexed Obligations | 2.375% | 1/15/25 | Aaa | 11,342,923 | |||||||||||||||
28,719 | U.S. Treasury Inflation Indexed Obligations | 0.250% | 1/15/25 | Aaa | 27,365,177 | |||||||||||||||
5,962 | U.S. Treasury Inflation Indexed Obligations | 2.000% | 1/15/26 | Aaa | 6,612,038 | |||||||||||||||
4,423 | U.S. Treasury Inflation Indexed Obligations | 2.375% | 1/15/27 | Aaa | 5,103,525 | |||||||||||||||
1,697 | U.S. Treasury Inflation Indexed Obligations | 1.750% | 1/15/28 | Aaa | 1,850,854 | |||||||||||||||
1,801 | U.S. Treasury Inflation Indexed Obligations | 3.625% | 4/15/28 | Aaa | 2,350,461 | |||||||||||||||
4,093 | U.S. Treasury Inflation Indexed Obligations | 2.500% | 1/15/29 | Aaa | 4,839,275 | |||||||||||||||
4,567 | U.S. Treasury Inflation Indexed Obligations | 2.125% | 2/15/40 | Aaa | 5,358,256 | |||||||||||||||
5,479 | U.S. Treasury Inflation Indexed Obligations | 2.125% | 2/15/41 | Aaa | 6,464,624 | |||||||||||||||
16,030 | U.S. Treasury Inflation Indexed Obligations | 0.750% | 2/15/42 | Aaa | 14,025,283 | |||||||||||||||
5,814 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 2/15/43 | Aaa | 4,898,789 | |||||||||||||||
1,735 | U.S. Treasury Inflation Indexed Obligations | 1.375% | 2/15/44 | Aaa | 1,758,408 | |||||||||||||||
3,207 | U.S. Treasury Inflation Indexed Obligations | 0.750% | 2/15/45 | Aaa | 2,784,113 | |||||||||||||||
12,538 | U.S. Treasury Notes | 0.375% | 7/15/25 | Aaa | 12,116,900 | |||||||||||||||
$ | 350,642 | Total U.S. Government and Agency Obligations (cost $355,528,304) | 350,786,383 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 3.5% | ||||||||||||||||||||
$ | 2,939 | Colony Anerican Homes Trust 2014-1A | 1.576% | 5/17/31 | Aaa | $ | 2,878,823 | |||||||||||||
2,000 | Commercial Mortgage Pass-Through Certificates Series 2012-CR4 | 1.801% | 10/15/45 | AAA | 1,983,693 | |||||||||||||||
640 | Credit Suisse Commercial Mortgage Trust, 2014-ICE | 1.976% | 4/15/27 | A– | 632,989 | |||||||||||||||
569 | DBUBS Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2011-LC3A | 3.642% | 8/10/44 | Aaa | 571,509 | |||||||||||||||
680 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2013-K712 | 3.484% | 5/25/45 | Aaa | 682,275 | |||||||||||||||
2,092 | Greenwich Capital Commercial Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 2007-GG11 | 5.736% | 12/10/49 | AAA | 2,158,064 | |||||||||||||||
22 | JPMorgan Chase Commercial Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2010-C1 | 3.853% | 6/15/43 | Aaa | 22,390 | |||||||||||||||
2,955 | JPMorgan JPMBB Commercial Mortgage Securities Trust, Pass-Through Certificates, Series 2013-C12 | 3.664% | 7/15/45 | AAA | 3,038,113 | |||||||||||||||
2,026 | Wells Fargo – Royal Bank of Scotland Commercial Mortgage Trust, Series 2012-C10 A3 | 2.875% | 12/15/45 | Aaa | 2,000,028 | |||||||||||||||
$ | 13,923 | Total Asset-Backed and Mortgage-Backed Securities (cost $14,305,553) | 13,967,884 |
60 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 0.6% | ||||||||||||||||||||
Canada – 0.5% | ||||||||||||||||||||
$ | 1,500 | Quebec Province | 7.500% | 7/15/23 | Aa2 | $ | 1,960,461 | |||||||||||||
Poland – 0.1% | ||||||||||||||||||||
250 | Republic of Poland | 6.375% | 7/15/19 | A2 | 285,625 | |||||||||||||||
$ | 1,750 | Total Sovereign Debt (cost $2,219,992) | 2,246,086 | |||||||||||||||||
Total Long-Term Investments (cost $399,115,079) | 392,946,249 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.9% |
| |||||||||||||||||||
Money Market Funds – 0.9% | ||||||||||||||||||||
3,513,550 | Mount Vernon Securities Lending Trust Prime Portfolio, (7) | 0.108% (6) | $ | 3,513,550 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $3,513,550) |
| 3,513,550 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 0.6% | ||||||||||||||||||||
Money Market Funds – 0.6% | ||||||||||||||||||||
2,580,386 | First American Treasury Obligations Fund, Class Z | 0.473% (6) | $ | 2,580,386 | ||||||||||||||||
Total Short-Term Investments (cost $2,580,386) | 2,580,386 | |||||||||||||||||||
Total Investments (cost $405,209,015) – 100.3% | 399,040,185 | |||||||||||||||||||
Other Assets Less Liabilities – (0.3)% (8) | (1,115,000) | |||||||||||||||||||
Net Assets – 100% | $ | 397,925,185 |
Investments in Derivatives as of December 31, 2015
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Variation Margin Payable | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (378 | ) | 3/16 | $ | (44,725,078 | ) | $ | (53,156 | ) | $ | 128,500 | ||||||||||||
U.S. Treasury 10-Year Note | Short | (60 | ) | 3/16 | (7,554,375 | ) | (17,813 | ) | 24,434 | |||||||||||||||
U.S. Treasury Long Bond | Long | 40 | 3/16 | 6,150,000 | 20,000 | 5,864 | ||||||||||||||||||
U.S. Treasury Ultra Bond | Long | 38 | 3/16 | 6,030,125 | 36,302 | 3,502 | ||||||||||||||||||
$ | (40,099,328 | ) | $ | (14,667 | ) | $ | 162,300 |
* | Total aggregate Notional Amount at Value of long and short positions is $12,180,125 and $(52,279,453), respectively. |
Nuveen Investments | 61 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a 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 $3,376,638. |
(4) | Perpetual security. Maturity date is not applicable. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(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 100% 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. |
(8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities. |
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. |
See accompanying notes to financial statements.
62 | Nuveen Investments |
Nuveen Intermediate Government Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 97.0% | ||||||||||||||||||||
CORPORATE BONDS – 0.6% | ||||||||||||||||||||
Health Care Providers & Services – 0.6% | ||||||||||||||||||||
$ | 400 | Catholic Health Initiatives | 1.600% | 11/01/17 | A+ | $ | 399,213 | |||||||||||||
$ | 400 | Total Corporate Bonds (cost $399,884) | 399,213 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (3) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 3.1% | ||||||||||||||||||||
Louisiana – 0.7% | ||||||||||||||||||||
$ | 500 | Louisiana Local Government Environmental Facilities and Community Development Authority, System Restoration Revenue Bonds, Louisiana Utilities Restoration Corporation Project/EGSL, Series 2010, 3.220%, 2/01/21 |
| No Opt. Call
|
| AAA | $ | 511,060 | ||||||||||||
Ohio – 2.4% | ||||||||||||||||||||
145 | Akron, Ohio, General Obligation Bonds, Refunding Various Purpose Series 2014B, 0.950%, 12/01/16 | No Opt. Call | AA– | 144,814 | ||||||||||||||||
345 | Columbus, Ohio, General Obligation Bonds, Various Purpose, Taxable Series 2014C, 3.000%, 2/15/19 | No Opt. Call | AAA | 358,793 | ||||||||||||||||
285 | Hamilton County, Ohio, Sewer System Revenue Bonds, Metropolitan Sewer District of Greater Cincinnati, Refunding Series 2013B, 1.233%, 12/01/16 | No Opt. Call | AA+ | 285,995 | ||||||||||||||||
845 | Ohio State, General Obligation Bonds, Higher Education, Build America Bond Series 2010E, 3.328%, 8/01/17 – AGM Insured | No Opt. Call | AA+ | 870,097 | ||||||||||||||||
1,620 | Total Ohio | 1,659,699 | ||||||||||||||||||
$ | 2,120 | Total Municipal Bonds (cost $2,178,229) | 2,170,759 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 61.6% | ||||||||||||||||||||
$ | 1,000 | Fannie Mae Notes | 1.250% | 9/27/18 | Aaa | $ | 995,005 | |||||||||||||
1,000 | Fannie Mae Notes | 1.330% | 10/24/19 | Aaa | 985,276 | |||||||||||||||
1,385 | Fannie Mae Notes | 1.500% | 11/30/20 | Aaa | 1,360,994 | |||||||||||||||
680 | Fannie Mae Notes, (4) | 1.125% | 10/19/18 | Aaa | 675,827 | |||||||||||||||
790 | Federal Farm Credit Bank Discount Notes | 1.030% | 5/11/18 | Aaa | 785,071 | |||||||||||||||
940 | Federal Farm Credit Banks, Consolidated Systemwide Notes | 0.500% | 8/23/16 | Aaa | 939,269 | |||||||||||||||
755 | Federal Farm Credit Banks, Consolidated Systemwide Notes | 0.750% | 8/14/17 | Aaa | 751,238 | |||||||||||||||
360 | Federal Farm Credit Banks, Consolidated Systemwide Notes | 1.750% | 4/01/21 | Aaa | 352,368 | |||||||||||||||
675 | Federal Home Loan Bank Bonds | 1.000% | 12/19/17 | Aaa | 673,342 | |||||||||||||||
755 | Federal Home Loan Bank Bonds | 1.200% | 8/14/18 | Aaa | 752,373 | |||||||||||||||
1,080 | Federal Home Loan Bank Bonds | 4.125% | 3/13/20 | Aaa | 1,183,936 | |||||||||||||||
955 | Federal Home Loan Bank Bonds | 2.875% | 6/14/24 | Aaa | 981,005 |
Nuveen Investments | 63 |
Nuveen Intermediate Government Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued) | ||||||||||||||||||||
$ | 2,260 | Federal Home Loan Bank Bonds | 2.875% | 9/13/24 | Aaa | $ | 2,309,761 | |||||||||||||
775 | Federal Home Loan Bank Bonds, (4) | 1.875% | 12/09/22 | Aaa | 753,776 | |||||||||||||||
825 | Federal Home Loan Bank Bonds, (4) | 2.375% | 3/14/25 | Aaa | 806,342 | |||||||||||||||
735 | Federal Home Loan Banks, Discount Notes | 2.220% | 3/28/23 | Aaa | 731,733 | |||||||||||||||
590 | Federal Home Loan Mortgage Corporation, Notes | 2.375% | 1/13/22 | Aaa | 598,199 | |||||||||||||||
670 | Federal National Mortgage Association | 5.000% | 3/15/16 | Aaa | 676,243 | |||||||||||||||
535 | Federal National Mortgage Association | 0.000% | 10/09/19 | Aaa | 495,576 | |||||||||||||||
2,205 | Federal National Mortgage Association | 1.500% | 6/22/20 | Aaa | 2,178,421 | |||||||||||||||
710 | FICO STRIPS | 0.000% | 5/02/17 | Aaa | 700,015 | |||||||||||||||
250 | Financing Corporation | 9.400% | 2/08/18 | Aaa | 292,346 | |||||||||||||||
270 | Freddie Mac Reference Notes | 5.000% | 12/14/18 | Aa2 | 297,525 | |||||||||||||||
530 | Tennessee Valley Authority | 3.875% | 2/15/21 | Aaa | 578,788 | |||||||||||||||
325 | U.S. Treasury Bonds | 8.750% | 8/15/20 | Aaa | 425,924 | |||||||||||||||
535 | U.S. Treasury Bonds | 7.250% | 8/15/22 | Aaa | 707,853 | |||||||||||||||
320 | U.S. Treasury Notes | 3.125% | 5/15/19 | Aaa | 337,699 | |||||||||||||||
730 | U.S. Treasury Notes | 1.500% | 11/30/19 | Aaa | 727,233 | |||||||||||||||
1,860 | U.S. Treasury Notes, (4) | 2.000% | 7/31/20 | Aaa | 1,881,888 | |||||||||||||||
1,660 | U.S. Treasury Notes | 2.000% | 11/30/20 | Aaa | 1,677,304 | |||||||||||||||
1,000 | U.S. Treasury Notes | 2.000% | 2/28/21 | Aaa | 1,008,616 | |||||||||||||||
745 | U.S. Treasury Notes | 2.000% | 11/15/21 | Aaa | 747,344 | |||||||||||||||
1,185 | U.S. Treasury Notes | 2.000% | 2/15/22 | Aaa | 1,187,338 | |||||||||||||||
1,685 | U.S. Treasury Notes | 1.750% | 5/15/23 | Aaa | 1,641,508 | |||||||||||||||
2,435 | U.S. Treasury Notes | 2.750% | 11/15/23 | Aaa | 2,541,173 | |||||||||||||||
3,505 | U.S. Treasury Notes | 2.000% | 2/15/25 | Aaa | 3,425,959 | |||||||||||||||
3,915 | U.S. Treasury Notes | 2.125% | 5/15/25 | Aaa | 3,863,677 | |||||||||||||||
1,275 | U.S. Treasury Notes | 2.000% | 8/15/25 | Aaa | 1,243,105 | |||||||||||||||
250 | U.S. Treasury Notes | 2.250% | 11/15/25 | Aaa | 249,441 | |||||||||||||||
1,145 | U.S. Treasury Securities, Stripped Interest Payments | 0.000% | 2/15/22 | Aaa | 1,005,395 | |||||||||||||||
$ | 43,300 | Total U.S. Government and Agency Obligations (cost $43,142,971) |
| 43,525,886 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 31.7% | ||||||||||||||||||||
$ | 497 | 321 Henderson Receivables LLC, Series 2010-3A | 3.820% | 12/15/48 | Aaa | $ | 509,479 | |||||||||||||
597 | 321 Henderson Receivables LLC., Series 2010-1A | 5.560% | 7/15/59 | Aaa | 651,919 | |||||||||||||||
500 | Barclays Dryrock Issuance Trust 2014-1 | 0.691% | 12/16/19 | AAA | 499,515 | |||||||||||||||
307 | Colony American Homes Trust 2014-1A | 1.400% | 5/17/31 | Aaa | 300,562 | |||||||||||||||
330 | Commercial Mortgage Pass-Through Certificates Series 2012-CR4 | 1.801% | 10/17/45 | AAA | 327,309 | |||||||||||||||
444 | Credit Suisse Commercial Mortgage Trust, 2015-2 | 3.000% | 2/25/45 | AAA | 446,411 |
64 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 218 | DBUBS Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2011-LC3A | 3.642% | 8/12/44 | Aaa | $ | 219,209 | |||||||||||||
550 | Entergy New Orleans Store Recovery Funding LLC, Series 2015-1 | 2.670% | 6/01/27 | AAA | 561,145 | |||||||||||||||
801 | Fannie Mae Alternative Credit Enhanced Securities | 1.637% | 11/25/17 | Aaa | 803,738 | |||||||||||||||
912 | Fannie Mae Alternative Credit Enhanced Securities | 0.484% | 12/25/17 | Aaa | 910,790 | |||||||||||||||
349 | Fannie Mae Connecticut Avenue Securities, Series 2014-C02 | 1.372% | 5/28/24 | Aaa | 345,351 | |||||||||||||||
108 | Fannie Mae Mortgage Pool 254169 | 6.500% | 12/01/31 | Aaa | 124,609 | |||||||||||||||
70 | Fannie Mae Mortgage Pool 254179 | 6.000% | 1/01/22 | Aaa | 79,491 | |||||||||||||||
75 | Fannie Mae Mortgage Pool 254344 | 6.500% | 6/01/22 | Aaa | 85,648 | |||||||||||||||
35 | Fannie Mae Mortgage Pool 254373 | 6.500% | 7/01/17 | Aaa | 35,527 | |||||||||||||||
40 | Fannie Mae Mortgage Pool 254414 | 7.000% | 7/01/17 | Aaa | 40,506 | |||||||||||||||
69 | Fannie Mae Mortgage Pool 254720 | 4.500% | 5/01/18 | Aaa | 71,064 | |||||||||||||||
838 | Fannie Mae Mortgage Pool 467749 | 3.240% | 4/01/16 | Aaa | 837,036 | |||||||||||||||
4 | Fannie Mae Mortgage Pool 580516 | 5.500% | 4/01/16 | Aaa | 3,815 | |||||||||||||||
69 | Fannie Mae Mortgage Pool 596680 | 7.000% | 9/01/31 | Aaa | 77,500 | |||||||||||||||
211 | Fannie Mae Mortgage Pool 596712 | 6.500% | 6/01/32 | Aaa | 235,065 | |||||||||||||||
41 | Fannie Mae Mortgage Pool 656269 | 6.000% | 8/01/32 | Aaa | 46,006 | |||||||||||||||
20 | Fannie Mae Mortgage Pool 673010 | 5.500% | 12/01/17 | Aaa | 20,396 | |||||||||||||||
46 | Fannie Mae Mortgage Pool 695765 | 5.500% | 4/01/18 | Aaa | 47,626 | |||||||||||||||
110 | Fannie Mae Mortgage Pool 725793 | 5.500% | 9/01/19 | Aaa | 115,313 | |||||||||||||||
171 | Fannie Mae Mortgage Pool 745101 | 6.000% | 4/01/32 | Aaa | 190,336 | |||||||||||||||
132 | Fannie Mae Mortgage Pool 848390 | 2.086% | 12/01/35 | Aaa | 138,304 | |||||||||||||||
184 | Fannie Mae Mortgage Pool 886034 | 2.820% | 7/01/36 | Aaa | 196,394 | |||||||||||||||
80 | Fannie Mae Mortgage Pool 887017 | 6.500% | 8/01/36 | Aaa | 92,527 | |||||||||||||||
254 | Fannie Mae Mortgage Pool 913187 | 2.489% | 4/01/37 | Aaa | 271,109 | |||||||||||||||
502 | Fannie Mae Mortgage Pool 914224 | 2.360% | 3/01/37 | Aaa | 534,957 | |||||||||||||||
139 | Fannie Mae Mortgage Pool 928519 | 7.000% | 6/01/37 | Aaa | 153,493 | |||||||||||||||
138 | Fannie Mae Mortgage Pool 995949 | 2.573% | 9/01/36 | Aaa | 146,591 | |||||||||||||||
574 | Fannie Mae Mortgage Pool AB1959 | 4.000% | 12/01/40 | Aaa | 609,323 | |||||||||||||||
635 | Fannie Mae Mortgage Pool AD0486 | 2.470% | 4/01/34 | Aaa | 671,269 | |||||||||||||||
58 | Fannie Mae Mortgage Pool AE0981 | 3.500% | 3/01/41 | Aaa | 59,736 | |||||||||||||||
347 | Fannie Mae Mortgage Pool AE4876 | 3.500% | 10/01/40 | Aaa | 358,603 | |||||||||||||||
48 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates | 1.083% | 2/25/16 | Aaa | 48,107 | |||||||||||||||
301 | Fannie Mae REMIC Pass-Through Certificates 2002-W1 2A | 6.335% | 2/25/42 | Aaa | 346,423 | |||||||||||||||
307 | Fannie Mae, Connecticut Avenue Securities, Series 2014-C03 | 1.622% | 7/25/24 | Aaa | 305,856 | |||||||||||||||
456 | FDIC Structures Sale Guaranteed Notes, Series 2010-S1 | 3.250% | 4/25/38 | Aaa | 465,637 | |||||||||||||||
656 | Federal Home Loan Mortgage Corporation, REMIC | 0.581% | 11/15/42 | Aaa | 653,872 | |||||||||||||||
311 | Freddie Mac Gold Pool 1H1396 | 2.500% | 5/01/37 | Aaa | 329,255 | |||||||||||||||
440 | Freddie Mac Gold Pool 780836 | 2.468% | 9/01/33 | Aaa | 466,613 |
Nuveen Investments | 65 |
Nuveen Intermediate Government Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 265 | Freddie Mac Gold Pool 848193 | 2.404% | 3/01/36 | Aaa | $ | 280,914 | |||||||||||||
21 | Freddie Mac Mortgage Pool, Various C35768 | 7.500% | 1/01/30 | Aaa | 22,533 | |||||||||||||||
49 | Freddie Mac Mortgage Pool, Various G00876 | 6.500% | 1/01/28 | Aaa | 55,607 | |||||||||||||||
125 | Freddie Mac Mortgage Pool, Various G01244 | 6.500% | 3/01/31 | Aaa | 145,024 | |||||||||||||||
206 | Freddie Mac Mortgage Trust 2013-KF02 | 3.422% | 12/25/45 | AAA | 211,168 | |||||||||||||||
385 | Freddie Mac Multifamily Structured Pass-Through Certificates, Series K701 | 2.776% | 6/26/17 | Aaa | 388,829 | |||||||||||||||
510 | Freddie Mac Multifamily Structured Pass-Through Certificates, Series K010 A1 | 3.320% | 7/25/20 | Aaa | 524,355 | |||||||||||||||
549 | Freddie Mac Multifamily Structured Pass-Through Certificates, Series K715 | 2.059% | 3/25/20 | Aaa | 554,634 | |||||||||||||||
16 | Freddie Mac Multifamily Structured Pass-Through Certificates Series KF01 | 0.772% | 4/25/19 | Aaa | 16,400 | |||||||||||||||
440 | Freddie Mac Structured Pass-Through Certificates, Series K-501 | 1.655% | 11/25/16 | Aaa | 440,932 | |||||||||||||||
597 | Freddie Mac Structured Pass-Through Certificates, Series K-502 A2 | 1.426% | 8/25/17 | AAA | 597,081 | |||||||||||||||
726 | Freddie Mac Structured Pass-Through Certificates, Series K008 | 2.746% | 12/25/19 | Aaa | 740,171 | |||||||||||||||
740 | Freddie Mac Whole Loan Securities Trust, Structured Pass-Through Certificates, Series 2015-SC01 | 3.500% | 5/25/45 | N/R | 747,072 | |||||||||||||||
49 | Government National Mortgage Association Pool 3120 | 6.500% | 8/20/31 | Aaa | 57,571 | |||||||||||||||
19 | Government National Mortgage Association Pool 347332 | 7.500% | 12/15/22 | Aaa | 18,896 | |||||||||||||||
5 | Government National Mortgage Association Pool 455304 | 7.000% | 9/15/27 | Aaa | 5,465 | |||||||||||||||
364 | Government National Mortgage Association Pool 4946 | 4.500% | 2/20/41 | Aaa | 396,175 | |||||||||||||||
64 | Government National Mortgage Association Pool 570134 | 7.500% | 12/15/31 | Aaa | 66,672 | |||||||||||||||
557 | Government National Mortgage Association Pool 633605 | 6.000% | 9/15/34 | Aaa | 646,716 | |||||||||||||||
124 | Government National Mortgage Association Pool 780825 | 6.500% | 7/15/28 | Aaa | 142,395 | |||||||||||||||
230 | Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9 | 0.825% | 5/17/46 | Aaa | 228,775 | |||||||||||||||
350 | Origen Manufactured Housing Contract Trust Collateralized Notes Series 2005B | 5.990% | 1/15/37 | A+ | 365,909 | |||||||||||||||
376 | Structured Agency Credit Risk 2014-DN1 | 1.221% | 2/26/24 | Aa3 | 376,030 | |||||||||||||||
434 | United States Department of Veterans, Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, Series 2011-1 | 3.750% | 2/15/35 | Aaa | 454,650 | |||||||||||||||
237 | U.S. Small Business Administration Guaranteed Participating Securities Participation Certificates, Series 2008-10A | 5.902% | 2/01/18 | Aaa | 251,977 | |||||||||||||||
337 | U.S. Small Business Administration Guaranteed Participating Securities Participation Certificates, Series 2010-P10A | 4.108% | 3/10/20 | Aaa | 352,962 | |||||||||||||||
497 | Centerpoint Energy Transition Bond Company LLC | 0.901% | 4/15/18 | AAA | 496,106 | |||||||||||||||
394 | Entergy Arkansas Restoration Funding LLC, Senior Secured Storm Recovery Bonds, Series 2010-A | 2.300% | 8/01/21 | AAA | 395,358 | |||||||||||||||
$ | 21,640 | Total Asset-Backed and Mortgage-Backed Securities (cost $21,732,075) |
| 22,413,812 | ||||||||||||||||
Total Long-Term Investments (cost $67,453,159) |
| 68,509,670 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 4.7% |
| |||||||||||||||||||
Money Market Funds – 4.7% | ||||||||||||||||||||
3,362,425 | Mount Vernon Securities Lending Trust Prime Portfolio, (6) | 0.472% (5) | $ | 3,362,425 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $3,362,425) |
| 3,362,425 |
66 | Nuveen Investments |
Shares | Description (1) | Coupon | Value | |||||||||||||
SHORT-TERM INVESTMENTS – 1.9% | ||||||||||||||||
Money Market Funds – 1.9% | ||||||||||||||||
1,359,290 | First American Treasury Obligations Fund, Class Z | 0.108% (5) | $ | 1,359,290 | ||||||||||||
Total Short-Term Investments (cost $1,359,290) | 1,359,290 | |||||||||||||||
Total Investments (cost $72,174,874) – 103.6% | 73,231,385 | |||||||||||||||
Other Assets Less Liabilities – (3.6)% (7) | (2,564,344) | |||||||||||||||
Net Assets – 100% | $ | 70,667,041 |
Investments in Derivatives as of December 31, 2015
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (56 | ) | 3/16 | $ | (6,625,937 | ) | $ | (7,875 | ) | $ | 12,085 | ||||||||||||
U.S. Treasury 10-Year Note | Short | (39 | ) | 3/16 | (4,910,344 | ) | (11,083 | ) | 19,284 | |||||||||||||||
U.S. Treasury Long Bond | Long | 10 | 3/16 | 1,537,500 | 5,000 | (8,015 | ) | |||||||||||||||||
$ | (9,998,781 | ) | $ | (13,958 | ) | $ | 23,354 |
* | Total aggregate Notional Amount at Value of long and short positions is $1,537,500 and $(11,536,281), 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) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(4) | Investment, or a 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 $3,246,704. |
(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 100% 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. |
(7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities. |
See accompanying notes to financial statements.
Nuveen Investments | 67 |
Nuveen Short Term Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 97.9% | ||||||||||||||||||||
CORPORATE BONDS – 45.0% | ||||||||||||||||||||
Airlines – 1.3% | ||||||||||||||||||||
$ | 2,221 | American Airlines Pass-Through Trust 2013-2C, 144A | 6.000% | 1/15/17 | BB | $ | 2,264,677 | |||||||||||||
1,987 | Delta Air Lines Pass-Through Certificates Series 2012-1A | 4.750% | 5/07/20 | A | 2,096,162 | |||||||||||||||
1,402 | Delta Air Lines Pass-Through Certificates, Series 2012-1B, 144A | 6.875% | 5/07/19 | BBB | 1,507,056 | |||||||||||||||
335 | Delta Airlines | 5.300% | 4/15/19 | A | 355,450 | |||||||||||||||
972 | Northwest Airlines Trust Pass-Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 1,082,648 | |||||||||||||||
823 | US Airways Pass-Through Trust | 7.076% | 3/20/21 | A | 887,227 | |||||||||||||||
7,740 | Total Airlines | 8,193,220 | ||||||||||||||||||
Auto Components – 0.1% | ||||||||||||||||||||
853 | American & Axle Manufacturing Inc., (3) | 6.625% | 10/15/22 | BB– | 893,518 | |||||||||||||||
Automobiles – 1.2% | ||||||||||||||||||||
3,135 | Daimler Finance NA LLC, 144A | 1.875% | 1/11/18 | A– | 3,122,664 | |||||||||||||||
2,000 | General Motors Financial Company Inc., (3) | 3.200% | 7/13/20 | BBB– | 1,969,202 | |||||||||||||||
3,000 | Volkswagen Group of America Finance LLC, 144A, (3) | 1.600% | 11/20/17 | A3 | 2,912,982 | |||||||||||||||
8,135 | Total Automobiles | 8,004,848 | ||||||||||||||||||
Banks – 8.5% | ||||||||||||||||||||
2,250 | Abbey National Treasury Services PLC of London | 3.050% | 8/23/18 | A1 | 2,309,137 | |||||||||||||||
7,820 | Bank of America Corporation | 5.650% | 5/01/18 | A | 8,408,760 | |||||||||||||||
3,305 | Bank of Nova Scotia | 1.375% | 12/18/17 | Aa2 | 3,289,314 | |||||||||||||||
3,525 | BB&T Corporation | 1.450% | 1/12/18 | A+ | 3,502,119 | |||||||||||||||
2,000 | Credit Agricole SA, 144A, (3) | 3.000% | 10/01/17 | A | 2,037,948 | |||||||||||||||
2,000 | Fifth Third Bancorp. | 4.500% | 6/01/18 | A– | 2,106,348 | |||||||||||||||
7,600 | General Electric Capital Corporation | 5.625% | 5/01/18 | AA+ | 8,289,419 | |||||||||||||||
2,000 | HSBC USA Inc. | 1.625% | 1/16/18 | AA– | 1,990,278 | |||||||||||||||
1,500 | ING Bank NV, 144A | 3.750% | 3/07/17 | A1 | 1,536,792 | |||||||||||||||
7,000 | JPMorgan Chase & Company | 6.000% | 1/15/18 | A+ | 7,560,910 | |||||||||||||||
3,000 | KeyCorp. | 2.300% | 12/13/18 | A– | 3,004,398 | |||||||||||||||
2,000 | Nordea Bank AB, 144A | 3.125% | 3/20/17 | AA– | 2,039,528 | |||||||||||||||
2,000 | Societe Generale | 2.750% | 10/12/17 | A | 2,027,842 | |||||||||||||||
6,105 | Wells Fargo & Company, (3) | 2.125% | 4/22/19 | AA– | 6,109,457 | |||||||||||||||
52,105 | Total Banks | 54,212,250 | ||||||||||||||||||
Beverages – 0.3% | ||||||||||||||||||||
2,000 | Heineken NV, 144A | 1.400% | 10/01/17 | BBB+ | 1,992,094 | |||||||||||||||
Biotechnology – 0.4% | ||||||||||||||||||||
1,000 | Baxalta Inc., 144A | 2.000% | 6/22/18 | BBB+ | 989,753 |
68 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Biotechnology (continued) | ||||||||||||||||||||
$ | 1,665 | Biogen Inc. | 2.900% | 9/15/20 | A– | $ | 1,661,345 | |||||||||||||
2,665 | Total Biotechnology | 2,651,098 | ||||||||||||||||||
Capital Markets – 3.6% | ||||||||||||||||||||
2,840 | Deutsche Bank AG London | 2.500% | 2/13/19 | A3 | 2,861,578 | |||||||||||||||
8,660 | Goldman Sachs Group, Inc. | 6.150% | 4/01/18 | A | 9,404,162 | |||||||||||||||
4,995 | Morgan Stanley | 5.950% | 12/28/17 | A | 5,371,129 | |||||||||||||||
2,250 | Nomura Holdings Incorporated | 2.750% | 3/19/19 | BBB+ | 2,262,537 | |||||||||||||||
3,000 | UBS AG Stamford | 1.800% | 3/26/18 | A | 2,995,164 | |||||||||||||||
21,745 | Total Capital Markets | 22,894,570 | ||||||||||||||||||
Chemicals – 1.7% | ||||||||||||||||||||
2,215 | Eastman Chemical Company | 2.700% | 1/15/20 | BBB | 2,194,017 | |||||||||||||||
2,635 | Ecolab Inc. | 1.450% | 12/08/17 | BBB+ | 2,610,173 | |||||||||||||||
1,165 | Ineos Group Holdings SA, 144A, (3) | 6.125% | 8/15/18 | B– | 1,153,350 | |||||||||||||||
2,000 | Petrologistics LP Finance Corporation | 6.250% | 4/01/20 | AA– | 2,090,000 | |||||||||||||||
2,750 | Sherwin-Williams Company | 1.350% | 12/15/17 | A | 2,726,760 | |||||||||||||||
10,765 | Total Chemicals | 10,774,300 | ||||||||||||||||||
Commercial Services & Supplies – 0.5% | ||||||||||||||||||||
1,250 | ADT Corporation, (3) | �� | 4.125% | 4/15/19 | BBB– | 1,285,938 | ||||||||||||||
2,000 | ERAC USA Finance LLC, 144A | 2.800% | 11/01/18 | BBB+ | 2,013,446 | |||||||||||||||
3,250 | Total Commercial Services & Supplies | 3,299,384 | ||||||||||||||||||
Consumer Finance – 1.1% | ||||||||||||||||||||
1,200 | Ally Financial Inc | 8.000% | 12/31/18 | BB | 1,314,000 | |||||||||||||||
2,750 | American Express Company | 1.550% | 5/22/18 | A+ | 2,728,825 | |||||||||||||||
2,000 | Ford Motor Credit Company | 1.500% | 1/17/17 | BBB– | 1,985,920 | |||||||||||||||
1,250 | Navient Corporation | 5.000% | 10/26/20 | BB | 1,096,875 | |||||||||||||||
7,200 | Total Consumer Finance | 7,125,620 | ||||||||||||||||||
Diversified Financial Services – 1.4% | ||||||||||||||||||||
2,570 | BNP Paribas | 2.700% | 8/20/18 | A+ | 2,606,892 | |||||||||||||||
1,000 | Fly Leasing Limited | 6.750% | 12/15/20 | BB | 1,024,850 | |||||||||||||||
1,000 | Rabobank Nederland Utrecht | 3.375% | 1/19/17 | Aa2 | 1,022,202 | |||||||||||||||
1,500 | Rabobank Nederland | 2.250% | 1/14/19 | Aa2 | 1,504,830 | |||||||||||||||
1,000 | Synchrony Financial | 1.875% | 8/15/17 | BBB– | 995,396 | |||||||||||||||
1,575 | Voya Financial Inc. | 2.900% | 2/15/18 | BBB | 1,592,309 | |||||||||||||||
8,645 | Total Diversified Financial Services | 8,746,479 | ||||||||||||||||||
Diversified Telecommunication Services – 1.9% | ||||||||||||||||||||
2,300 | AT&T, Inc. | 1.400% | 12/01/17 | A– | 2,289,482 | |||||||||||||||
1,250 | Frontier Communications Corporation | 8.125% | 10/01/18 | BB | 1,290,625 | |||||||||||||||
3,420 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 3,408,104 |
Nuveen Investments | 69 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Diversified Telecommunication Services (continued) | ||||||||||||||||||||
$ | 4,730 | Verizon Communications | 3.650% | 9/14/18 | A– | $ | 4,947,055 | |||||||||||||
11,700 | Total Diversified Telecommunication Services | 11,935,266 | ||||||||||||||||||
Energy Equipment & Services – 0.5% | ||||||||||||||||||||
2,000 | Regency Energy Partners Finance | 6.500% | 7/15/21 | BBB– | 2,010,000 | |||||||||||||||
1,000 | SESI, LLC | 7.125% | 12/15/21 | BBB– | 890,000 | |||||||||||||||
3,000 | Total Energy Equipment & Services | 2,900,000 | ||||||||||||||||||
Food & Staples Retailing – 1.0% | ||||||||||||||||||||
1,250 | Supervalu Inc. | 6.750% | 6/01/21 | B | 1,131,250 | |||||||||||||||
2,015 | Sysco Corporation | 2.600% | 10/01/20 | A2 | 2,018,992 | |||||||||||||||
3,050 | Walgreens Boots Alliance, Inc. | 1.750% | 11/17/17 | BBB | 3,044,208 | |||||||||||||||
6,315 | Total Food & Staples Retailing | 6,194,450 | ||||||||||||||||||
Food Products – 1.6% | ||||||||||||||||||||
2,175 | Bunge Limited Finance Company, (3) | 3.500% | 11/24/20 | BBB | 2,163,853 | |||||||||||||||
1,065 | Kraft Heinz Foods Company, 144A | 2.000% | 7/02/18 | BBB– | 1,061,194 | |||||||||||||||
2,500 | Mondelez International Inc. | 2.250% | 2/01/19 | Baa1 | 2,499,428 | |||||||||||||||
2,500 | Tyson Foods | 2.650% | 8/15/19 | BBB | 2,502,010 | |||||||||||||||
2,000 | Wm. Wrigley Jr. Company, 144A | 2.900% | 10/21/19 | A– | 2,019,212 | |||||||||||||||
10,240 | Total Food Products | 10,245,697 | ||||||||||||||||||
Gas Utilities – 0.3% | ||||||||||||||||||||
1,000 | AmeriGas Finance LLC | 6.750% | 5/20/20 | Ba2 | 972,500 | |||||||||||||||
1,300 | Ferrellgas LP | 8.625% | 6/15/20 | B– | 1,222,000 | |||||||||||||||
2,300 | Total Gas Utilities | 2,194,500 | ||||||||||||||||||
Health Care Equipment & Supplies – 0.5% | ||||||||||||||||||||
3,260 | Becton Dickinson & Company | 1.800% | 12/15/17 | BBB+ | 3,255,436 | |||||||||||||||
Health Care Providers & Services – 1.9% | ||||||||||||||||||||
3,000 | Aetna Inc. | 1.500% | 11/15/17 | A | 2,988,627 | |||||||||||||||
3,000 | Cardinal Health Inc. | 2.400% | 11/15/19 | A– | 2,999,949 | |||||||||||||||
1,500 | HCA Inc. | 4.250% | 10/15/19 | BBB– | 1,530,000 | |||||||||||||||
1,300 | Iasis Healthcare Capital Corporation | 8.375% | 5/15/19 | CCC+ | 1,196,000 | |||||||||||||||
1,750 | Wellpoint Inc. | 1.875% | 1/15/18 | A | 1,742,578 | |||||||||||||||
1,500 | Zoetis Incorporated | 1.875% | 2/01/18 | Baa2 | 1,479,914 | |||||||||||||||
12,050 | Total Health Care Providers & Services | 11,937,068 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.4% | ||||||||||||||||||||
1,100 | International Game Technology | 7.500% | 6/15/19 | BB+ | 1,176,780 | |||||||||||||||
1,250 | MGM Resorts International Inc., (3) | 6.750% | 10/01/20 | BB | 1,284,375 | |||||||||||||||
2,350 | Total Hotels, Restaurants & Leisure | 2,461,155 | ||||||||||||||||||
Household Durables – 0.1% | ||||||||||||||||||||
750 | William Lyon Homes Incorporated | 8.500% | 11/15/20 | B– | 793,125 |
70 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Independent Power & Renewable Electricity Producers – 0.1% | ||||||||||||||||||||
$ | 800 | Dynegy Inc., (3) | 6.750% | 11/01/19 | B+ | $ | 752,000 | |||||||||||||
Insurance – 0.9% | ||||||||||||||||||||
2,700 | Prudential Financial Inc. | 6.000% | 12/01/17 | A | 2,899,468 | |||||||||||||||
1,000 | Security Benefit Life Insurance Company, 144A | 8.750% | 5/15/16 | BBB | 1,022,938 | |||||||||||||||
2,000 | Sirius International Group Limited, 144A | 6.375% | 3/20/17 | BBB | 2,042,996 | |||||||||||||||
5,700 | Total Insurance | 5,965,402 | ||||||||||||||||||
IT Services – 0.5% | ||||||||||||||||||||
3,490 | Visa Inc. | 2.200% | 12/14/20 | A+ | 3,487,348 | |||||||||||||||
Life Sciences Tools & Services – 0.4% | ||||||||||||||||||||
2,520 | Thermo Fischer Scientific Inc. | 1.300% | 2/01/17 | BBB | 2,511,057 | |||||||||||||||
Machinery – 0.1% | ||||||||||||||||||||
750 | BlueLine Rental Finance Corporation, 144A, (3) | 7.000% | 2/01/19 | B+ | 675,000 | |||||||||||||||
Media – 2.9% | ||||||||||||||||||||
2,600 | British Sky Broadcasting Group PLC, 144A | 6.100% | 2/15/18 | BBB | 2,799,987 | |||||||||||||||
2,000 | CCO Safari II LLC, 144A | 3.579% | 7/23/20 | BBB– | 1,988,544 | |||||||||||||||
4,000 | Comcast Corporation, (3) | 5.875% | 2/15/18 | A– | 4,357,088 | |||||||||||||||
3,370 | DIRECTV Holdings LLC | 2.400% | 3/15/17 | A– | 3,397,230 | |||||||||||||||
1,600 | Discovery Communications Inc. | 5.625% | 8/15/19 | Baa2 | 1,741,222 | |||||||||||||||
1,500 | Dish DBS Corporation | 4.250% | 4/01/18 | BB– | 1,503,750 | |||||||||||||||
1,500 | Numericable Group SA, 144A | 4.875% | 5/15/19 | B+ | 1,486,875 | |||||||||||||||
1,000 | Thomson Reuters Corporation | 1.300% | 2/23/17 | BBB+ | 995,272 | |||||||||||||||
17,570 | Total Media | 18,269,968 | ||||||||||||||||||
Metals & Mining – 1.2% | ||||||||||||||||||||
1,250 | Alcoa Inc. | 6.150% | 8/15/20 | BBB– | 1,290,625 | |||||||||||||||
1,250 | ArcelorMittal | 5.250% | 2/25/17 | BB+ | 1,207,375 | |||||||||||||||
1,462 | Freeport-McMoran Oil & Gas LLC / FCX Oil & Gas Inc. | 6.125% | 6/15/19 | BBB | 1,068,137 | |||||||||||||||
2,500 | Nucor Corporation | 5.850% | 6/01/18 | A– | 2,676,523 | |||||||||||||||
1,735 | Rio Tinto Finance USA PLC | 1.625% | 8/21/17 | A– | 1,710,181 | |||||||||||||||
8,197 | Total Metals & Mining | 7,952,841 | ||||||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
2,665 | Sempra Energy | 2.300% | 4/01/17 | BBB+ | 2,680,454 | |||||||||||||||
Oil, Gas & Consumable Fuels – 3.2% | ||||||||||||||||||||
1,000 | Anadarko Petroleum Corporation | 6.375% | 9/15/17 | BBB | 1,048,601 | |||||||||||||||
645 | Calumet Specialty Products, (3) | 6.500% | 4/15/21 | B+ | 561,150 | |||||||||||||||
3,000 | Canadian Natural Resources Limited | 1.750% | 1/15/18 | BBB+ | 2,918,304 | |||||||||||||||
2,000 | CNOOC Finance 2014 ULC | 1.625% | 4/30/17 | AA– | 1,988,430 | |||||||||||||||
2,000 | Kinder Morgan Inc., Delaware | 7.000% | 6/15/17 | BBB– | 2,060,212 |
Nuveen Investments | 71 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 4,345 | Phillips 66 | 2.950% | 5/01/17 | A3 | $ | 4,403,983 | |||||||||||||
750 | Sabine Pass Liquefaction LLC | 5.625% | 2/01/21 | BB+ | 690,000 | |||||||||||||||
3,000 | Sinopec Group Overseas Development 2014 Limited, 144A | 1.101% | 4/10/17 | AA– | 2,995,383 | |||||||||||||||
1,370 | Spectra Energy Partners LP | 2.950% | 9/25/18 | BBB | 1,346,270 | |||||||||||||||
1,780 | SunCor Energy Inc. | 6.100% | 6/01/18 | A– | 1,914,696 | |||||||||||||||
1,000 | Whiting Petroleum Corporation | 5.000% | 3/15/19 | BB– | 755,000 | |||||||||||||||
20,890 | Total Oil, Gas & Consumable Fuels | 20,682,029 | ||||||||||||||||||
Paper & Forest Products – 0.2% | ||||||||||||||||||||
1,000 | Mercer International Inc. | 7.000% | 12/01/19 | B+ | 1,002,500 | |||||||||||||||
Pharmaceuticals – 0.6% | ||||||||||||||||||||
3,540 | McKesson Corporation | 1.292% | 3/10/17 | BBB+ | 3,530,166 | |||||||||||||||
Real Estate Investment Trust – 1.5% | ||||||||||||||||||||
2,000 | American Tower Company | 4.500% | 1/15/18 | BBB | 2,085,812 | |||||||||||||||
2,000 | First Industrial Realty Trust | 5.950% | 5/15/17 | BBB– | 2,099,304 | |||||||||||||||
1,145 | Gaming and Leisure Products Inc., GLP Capital LP Financing II Inc., (3) | 4.375% | 11/01/18 | BBB– | 1,133,550 | |||||||||||||||
2,605 | Realty Income Corporation | 2.000% | 1/31/18 | BBB+ | 2,606,448 | |||||||||||||||
2,000 | Ventas Realty LP | 2.000% | 2/15/18 | BBB+ | 1,990,436 | |||||||||||||||
9,750 | Total Real Estate Investment Trust | 9,915,550 | ||||||||||||||||||
Software – 1.3% | ||||||||||||||||||||
3,130 | CA Inc. | 2.875% | 8/15/18 | BBB+ | 3,142,705 | |||||||||||||||
3,460 | Symantec Corporation | 2.750% | 6/15/17 | BBB | 3,455,412 | |||||||||||||||
2,000 | Total System Services Inc. | 2.375% | 6/01/18 | BBB+ | 1,979,358 | |||||||||||||||
8,590 | Total Software | 8,577,475 | ||||||||||||||||||
Specialty Retail – 0.3% | ||||||||||||||||||||
2,020 | Hyundai Capital America, 144A | 2.400% | 10/30/18 | A– | 2,013,916 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 0.9% | ||||||||||||||||||||
2,720 | Apple Inc. | 2.100% | 5/06/19 | AA+ | 2,752,460 | |||||||||||||||
1,875 | Hewlett Packard Enterprise Co, 144A | 2.850% | 10/05/18 | A– | 1,874,318 | |||||||||||||||
1,000 | Seagate HDD Cayman | 3.750% | 11/15/18 | BBB– | 992,697 | |||||||||||||||
5,595 | Total Technology Hardware, Storage & Peripherals | 5,619,475 | ||||||||||||||||||
Tobacco – 0.8% | ||||||||||||||||||||
2,000 | BAT International Finance PLC, 144A | 2.125% | 6/07/17 | A– | 2,012,588 | |||||||||||||||
3,000 | Reynolds American Inc., (3) | 2.300% | 8/21/17 | BBB– | 3,023,586 | |||||||||||||||
5,000 | Total Tobacco | 5,036,174 | ||||||||||||||||||
Trading Companies & Distributors – 0.2% | ||||||||||||||||||||
1,500 | Air Lease Corporation | 2.625% | 9/04/18 | BBB– | 1,483,023 | |||||||||||||||
Transportation Infrastructure – 0.3% | ||||||||||||||||||||
2,000 | Aviation Capital Group Corporation, 144A | 2.875% | 9/17/18 | BBB– | 1,988,524 |
72 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Wireless Telecommunication Services – 0.9% | ||||||||||||||||||||
$ | 1,250 | Softbank Corporation, 144A, (3) | 4.500% | 4/15/20 | BB+ | $ | 1,243,750 | |||||||||||||
1,000 | T-Mobile USA Inc. | 6.464% | 4/28/19 | BB | 1,029,819 | |||||||||||||||
3,480 | Vodafone Group PLC | 1.500% | 2/19/18 | BBB+ | 3,441,545 | |||||||||||||||
5,730 | Total Wireless Telecommunication Services | 5,715,114 | ||||||||||||||||||
$ | 284,375 | Total Corporate Bonds (cost $291,405,283) | 288,562,094 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 0.5% |
| |||||||||||||||||||
Banks – 0.5% | ||||||||||||||||||||
$ | 3,000 | Citigroup Inc. | 8.400% | N/A (4) | BB+ | $ | 3,268,500 | |||||||||||||
$ | 3,000 | Total $1,000 Par (or similar) Institutional Preferred (cost $3,463,307) |
| 3,268,500 | ||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 2.1% | ||||||||||||||||||||
California – 0.2% | ||||||||||||||||||||
$ | 1,015 | California State, General Obligation Bonds, Various Purpose Build America Taxable Bond Series 2010, 5.750%, 3/01/17 | No Opt. Call | AA– | $ | 1,069,313 | ||||||||||||||
Guam – 0.4% | ||||||||||||||||||||
Government of Guam, Business Privilege Tax Bonds, Taxable Series 2012B-2: | ||||||||||||||||||||
1,155 | 2.933%, 1/01/17 | No Opt. Call | A | 1,152,782 | ||||||||||||||||
1,190 | 3.301%, 1/01/18 | No Opt. Call | A | 1,181,610 | ||||||||||||||||
2,345 | Total Guam | 2,334,392 | ||||||||||||||||||
Massachusetts – 0.4% | ||||||||||||||||||||
2,750 | University of Massachusetts Building Authority, Project Revenue Bonds, Senior Series 2014-2, 1.185%, 11/01/17 | No Opt. Call | Aa2 | 2,745,738 | ||||||||||||||||
Nevada – 0.4% | ||||||||||||||||||||
2,500 | Las Vegas Valley Water District, Nevada, General Obligation Bonds, Refunding Series 2011B, 3.176%, 6/01/17 | No Opt. Call | AA+ | 2,560,275 | ||||||||||||||||
Ohio – 0.3% | ||||||||||||||||||||
1,470 | Ohio State, General Obligation Bonds, Higher Education, Build America Bond Series 2010E, 3.328%, 8/01/17 – AGM Insured | No Opt. Call | AA+ | 1,513,659 | ||||||||||||||||
Pennsylvania – 0.2% | ||||||||||||||||||||
1,500 | Allentown Neighborhood Improvement Zone Development Authority, Pennsylvania, Tax Revenue Bonds, Taxable Series 2012B, 4.120%, 5/01/16 | No Opt. Call | Baa2 | 1,506,285 | ||||||||||||||||
Texas – 0.2% | ||||||||||||||||||||
1,500 | Dallas-Ft. Worth International Airport Facility Improvement Corporation, Texas, Revenue Bonds, Learjet Inc., Series 2001A-1, 6.150%, 1/01/16 (Alternative Minimum Tax) | �� | No Opt. Call | B2 | 1,500,000 | |||||||||||||||
$ | 13,080 | Total Municipal Bonds (cost $13,155,464) | 13,229,662 |
Nuveen Investments | 73 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 5.4% | ||||||||||||||||||||
$ | 5,000 | U.S. Treasury Notes | 0.625% | 8/31/2017 | Aaa | $ | 4,968,155 | |||||||||||||
6,000 | U.S. Treasury Notes, (3) | 0.875% | 11/30/2017 | Aaa | 5,983,212 | |||||||||||||||
14,045 | U.S. Treasury Notes | 0.750% | 12/31/2017 | Aaa | 13,951,250 | |||||||||||||||
10,000 | U.S. Treasury Notes | 1.375% | 6/30/2018 | Aaa | 10,040,980 | |||||||||||||||
$ | 35,045 | Total U.S. Government and Agency Obligations (cost $35,062,108) |
| 34,943,597 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 44.4% | ||||||||||||||||||||
$ | 573 | ACE Securities Corporation, Manufactured Housing Trust Series 2003-MH1 | 6.500% | 8/15/30 | AA | $ | 625,518 | |||||||||||||
3,718 | American Homes 4 Rent, Series 2014-SFR1 | 1.676% | 6/17/31 | Aaa | 3,643,160 | |||||||||||||||
5,170 | American Tower Company, 144A | 1.551% | 3/15/43 | Aaa | 5,049,250 | |||||||||||||||
4,271 | AmeriCold LLC Trust, Series 2010 | 2.500% | 1/14/29 | AAA | 4,239,872 | |||||||||||||||
358 | Amortizing Residential Collateral Trust Series 2002-BC4 M1 | 1.477% | 7/25/32 | Baa2 | 351,423 | |||||||||||||||
1,892 | Amortizing Residential Collateral Trust, Series 2002-BC7 | 1.187% | 10/25/32 | Aa1 | 1,746,946 | |||||||||||||||
3,000 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP | 4.427% | 9/10/28 | A– | 3,018,657 | |||||||||||||||
2,415 | BXHTL Mortgage Trust, Series 2015-JWRZ | 1.656% | 5/15/29 | AAA | 2,393,045 | |||||||||||||||
3,000 | Cabela’s Master Credit Card Trust, Series 2011-A2 | 0.961% | 2/18/20 | AAA | 3,002,219 | |||||||||||||||
638 | California Republic Auto Receivables Trust 2013-2 | 1.230% | 3/15/19 | Aaa | 636,250 | |||||||||||||||
3,250 | California Republic Auto Receivables Trust, Series 2015-1 | 1.330% | 4/15/19 | AAA | 3,232,717 | |||||||||||||||
3,154 | CAM Mortgage Trust 2015-1 | 3.500% | 7/15/64 | N/R | 3,151,572 | |||||||||||||||
4,355 | Capital Auto Receivables Asset Trust, Asset Backed Notes, Series 2014-1 | 1.320% | 6/20/18 | AAA | 4,353,280 | |||||||||||||||
2,494 | Capital One Multi Asset Execution Trust, Series 2015-A1 | 1.390% | 1/15/21 | AAA | 2,480,185 | |||||||||||||||
1,123 | Centerpoint Energy Transition Bond Company LLC | 0.901% | 4/15/18 | AAA | 1,119,653 | |||||||||||||||
4,500 | CitiBank Credit Card Issuance Trust, Series 2014-A6 | 2.150% | 7/15/21 | Aaa | 4,522,309 | |||||||||||||||
131 | Citicorp Mortgage Securities I, REMIC Pass-Through Certificates, Series 2007-9 | 5.500% | 12/25/22 | Ba1 | 130,792 | |||||||||||||||
254 | Citicorp Mortgage Securities Inc., REMIC Pass-Through Certificates, Series 2006-1 5A1 | 5.500% | 2/25/26 | Caa1 | 258,231 | |||||||||||||||
2,960 | Colony American Homes Trust 2015-1A | 2.376% | 7/17/32 | A2 | 2,846,222 | |||||||||||||||
6,300 | Commercial Mortgage Pass-Through Certificates, Series 2014-SAVA | 2.176% | 6/15/34 | AA | 6,280,183 | |||||||||||||||
4,470 | Commercial Mortgage Trust 2014-BBG | 1.226% | 3/15/29 | AAA | 4,421,968 | |||||||||||||||
1,514 | Consumer Credit Orgination Loan Trust, Series 2015-1 | 2.820% | 3/15/21 | Baa3 | 1,514,193 | |||||||||||||||
6,528 | Consumers Securitization Funding LLC, Series 2014-A | 1.334% | 11/01/20 | AAA | 6,466,687 | |||||||||||||||
583 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2006-19CB | 6.000% | 8/25/36 | Caa3 | 532,081 | |||||||||||||||
1,016 | Countrywide Asset Backed Certificates 2005-3 | 5.184% | 8/25/35 | A+ | 1,021,462 | |||||||||||||||
1,787 | Countrywide Asset Backed Certificates, Series 2007-4 A2 | 5.374% | 4/25/47 | Caa1 | 1,946,614 | |||||||||||||||
174 | Countrywide Home Loan Mortgage Pass-Through Trust, Series 2004-2 | 2.438% | 2/25/34 | BB+ | 168,084 | |||||||||||||||
1,900 | Credit Suisse Commercial Mortgage Trust, 2014-ICE | 1.976% | 4/15/27 | A– | 1,879,186 |
74 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 5,461 | Credit Suisse Commercial Mortgage Trust, 2015-2 | 3.000% | 2/25/45 | AAA | $ | 5,486,799 | |||||||||||||
5,178 | Credit Suisse Commercial Mortgage Trust, Series 2013-6 | 2.500% | 7/25/28 | AAA | 5,127,258 | |||||||||||||||
439 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-23 | 5.750% | 9/25/33 | AA+ | 465,015 | |||||||||||||||
3,140 | Credit-Based Asset Servicing and Securitization Pool 2007-SP1 | 6.020% | 12/25/37 | A+ | 3,275,963 | |||||||||||||||
1,876 | DBUBS Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2011-LC3A | 3.642% | 8/10/44 | Aaa | 1,882,849 | |||||||||||||||
4,900 | Discover Card Execution Note Trust 2012-A6 | 1.670% | 1/18/22 | AAA | 4,833,968 | |||||||||||||||
4,000 | Discover Card Master Trust 2013-A1 | 0.731% | 8/17/20 | AAA | 3,993,070 | |||||||||||||||
1,010 | Drive Auto Receivables Trust, Series 2015-AA | 1.010% | 11/15/17 | AAA | 1,009,132 | |||||||||||||||
2,517 | DT Auto Owner Trust, Series 2014-3A | 0.980% | 4/16/18 | AAA | 2,512,076 | |||||||||||||||
5,818 | Entergy Arkansas Restoration Funding LLC, Senior Secured Storm Recovery Bonds, Series 2010-A | 2.300% | 8/01/21 | AAA | 5,848,744 | |||||||||||||||
3,746 | Entergy Louisiana Investment Recovery Funding LLC, Series 2011-A | 2.040% | 9/01/23 | AAA | 3,731,327 | |||||||||||||||
721 | Fannie Mae Alternative Credit Enhanced Securities | 2.210% | 9/25/20 | Aaa | 731,871 | |||||||||||||||
2,876 | Fannie Mae Connecticut Avenue Securities , Series 2014-C04 | 2.377% | 11/25/24 | AAA | 2,890,145 | |||||||||||||||
644 | Fannie Mae Mortgage Interest Strips 366 25, (I/O) | 5.000% | 9/25/24 | Aaa | 43,864 | |||||||||||||||
95 | Fannie Mae Mortgage Pool 433988 | 2.395% | 11/01/25 | Aaa | 99,410 | |||||||||||||||
405 | Fannie Mae Mortgage Pool 535363 | 5.122% | 12/01/31 | Aaa | 429,609 | |||||||||||||||
38 | Fannie Mae Mortgage Pool 545717 | 2.260% | 5/01/32 | Aaa | 38,597 | |||||||||||||||
8 | Fannie Mae Mortgage Pool 545791 | 2.495% | 3/01/32 | Aaa | 8,047 | |||||||||||||||
98 | Fannie Mae Mortgage Pool 555369 | 2.527% | 8/01/36 | Aaa | 105,050 | |||||||||||||||
90 | Fannie Mae Mortgage Pool 625338 | 2.327% | 6/01/31 | Aaa | 93,474 | |||||||||||||||
112 | Fannie Mae Mortgage Pool 634948 | 2.540% | 5/01/32 | Aaa | 116,313 | |||||||||||||||
16 | Fannie Mae Mortgage Pool 661645 | 2.454% | 10/01/32 | Aaa | 16,523 | |||||||||||||||
40 | Fannie Mae Mortgage Pool 671884 | 2.490% | 12/01/32 | Aaa | 41,142 | |||||||||||||||
804 | Fannie Mae Mortgage Pool 725721 | 2.389% | 6/01/34 | Aaa | 854,499 | |||||||||||||||
754 | Fannie Mae Mortgage Pool 745922 | 2.453% | 7/01/35 | Aaa | 799,568 | |||||||||||||||
60 | Fannie Mae Mortgage Pool 775389 | 2.635% | 4/01/34 | Aaa | 62,217 | |||||||||||||||
737 | Fannie Mae Mortgage Pool 795242 | 2.167% | 7/01/34 | Aaa | 762,913 | |||||||||||||||
790 | Fannie Mae Mortgage Pool 797182 | 2.567% | 11/01/34 | Aaa | 832,833 | |||||||||||||||
75 | Fannie Mae Mortgage Pool 838948 | 2.053% | 8/01/35 | Aaa | 78,091 | |||||||||||||||
547 | Fannie Mae Mortgage Pool 838958 | 2.260% | 8/01/35 | Aaa | 577,159 | |||||||||||||||
682 | Fannie Mae Mortgage Pool 841068 | 2.638% | 11/01/34 | Aaa | 721,175 | |||||||||||||||
352 | Fannie Mae Mortgage Pool 848390 | 2.103% | 12/01/35 | Aaa | 368,811 | |||||||||||||||
378 | Fannie Mae Mortgage Pool 886034 | 2.836% | 7/01/36 | Aaa | 403,500 | |||||||||||||||
345 | Fannie Mae Mortgage Pool 995949 | 2.582% | 9/01/36 | Aaa | 366,477 | |||||||||||||||
1,011 | Fannie Mae Mortgage Pool AD0486 | 2.498% | 4/01/34 | Aaa | 1,068,746 | |||||||||||||||
928 | Fannie Mae Mortgage Pool AD0550 | 2.367% | 8/01/37 | Aaa | 980,643 | |||||||||||||||
1,326 | Fannie Mae Mortgage Pool AE0058 | 2.504% | 7/01/36 | Aaa | 1,400,737 |
Nuveen Investments | 75 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 1,166 | Fannie Mae Mortgage Pool AL2720 | 3.000% | 11/01/27 | Aaa | $ | 1,207,007 | |||||||||||||
19 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 1992-150 MA | 5.500% | 9/25/22 | Aaa | 20,453 | |||||||||||||||
397 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through Certificates 2004-90 GF | 0.727% | 11/25/34 | Aaa | 398,204 | |||||||||||||||
234 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass-Through CertificatesA 2013-M3 ASQ2 | 1.083% | 2/25/16 | Aaa | 233,661 | |||||||||||||||
538 | Fannie Mae REMIC Pass-Through Certificates 2011-6 BA | 2.750% | 6/25/20 | Aaa | 545,373 | |||||||||||||||
2,638 | Fannie Mae, Connecticut Avenue Securities Series 2014-C01 | 2.027% | 1/25/24 | AA+ | 2,642,287 | |||||||||||||||
3,008 | Fannie Mae, Connecticut Avenue Securities, Series 2014-C03 | 1.627% | 7/25/24 | Aaa | 2,997,389 | |||||||||||||||
1,791 | FDIC Structures Sale Guaranteed Notes, Series 2010-S1 | 3.250% | 4/25/38 | Aaa | 1,829,522 | |||||||||||||||
528 | FDIC Structures Sale Guaranteed Notes, Series 2010-S1 | 0.978% | 2/25/48 | Aaa | 527,946 | |||||||||||||||
6 | Federal Home Loan Mortgage Corporation, REMIC 1022 J | 6.000% | 12/15/20 | Aaa | 6,285 | |||||||||||||||
2,500 | Fifth Third Auto Trust, Series 2013 A B | 1.210% | 4/15/19 | AAA | 2,487,360 | |||||||||||||||
936 | Ford Credit Auto Owners Trust 2013-B | 0.570% | 10/15/17 | AAA | 935,068 | |||||||||||||||
346 | Freddie Mac Gold Pool 780456 | 2.472% | 5/01/33 | Aaa | 366,006 | |||||||||||||||
644 | Freddie Mac Gold Pool 780911 | 2.526% | 10/01/33 | Aaa | 683,176 | |||||||||||||||
745 | Freddie Mac Gold Pool 781296 | 2.498% | 3/01/34 | Aaa | 784,525 | |||||||||||||||
196 | Freddie Mac Gold Pool 786591 | 2.644% | 12/01/26 | Aaa | 203,009 | |||||||||||||||
92 | Freddie Mac Gold Pool 786853 | 2.385% | 10/01/29 | Aaa | 94,551 | |||||||||||||||
130 | Freddie Mac Gold Pool 846946 | 2.485% | 1/01/29 | Aaa | 136,401 | |||||||||||||||
36 | Freddie Mac Gold Pool 847014 | 2.360% | 5/01/30 | Aaa | 36,735 | |||||||||||||||
67 | Freddie Mac Gold Pool 847063 | 2.667% | 10/01/32 | Aaa | 71,589 | |||||||||||||||
577 | Freddie Mac Gold Pool 847241 | 2.449% | 10/01/30 | Aaa | 596,066 | |||||||||||||||
848 | Freddie Mac Gold Pool 847331 | 2.480% | 8/01/32 | Aaa | 891,754 | |||||||||||||||
63 | Freddie Mac Gold Pool 847367 | 2.341% | 6/01/31 | Aaa | 66,269 | |||||||||||||||
317 | Freddie Mac Gold Pool 847652 | 2.436% | 9/01/32 | Aaa | 327,203 | |||||||||||||||
1,065 | Freddie Mac Gold Pool 848193 | 2.557% | 3/01/36 | Aaa | 1,129,492 | |||||||||||||||
168 | Freddie Mac Gold Pool 972055 | 3.698% | 4/01/30 | Aaa | 178,389 | |||||||||||||||
67 | Freddie Mac Mortgage Pool, Various M30035 | 4.500% | 4/01/22 | Aaa | 70,325 | |||||||||||||||
2,082 | Freddie Mac Mortgage Trust 2013-KF02 | 3.427% | 12/25/45 | AAA | 2,139,102 | |||||||||||||||
1,000 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2012-K711 | 3.684% | 8/25/45 | Aaa | 1,011,389 | |||||||||||||||
563 | Freddie Mac Multi-Class Certificates 3780 FE | 0.827% | 12/15/20 | Aaa | 566,640 | |||||||||||||||
4,075 | Freddie Mac MultiFamily Mortgage Trust, Structured Pass-Through Certificates, Series 2012-K501 | 3.517% | 11/25/46 | AAA | 4,086,177 | |||||||||||||||
2,960 | Freddie Mac MultiFamily Mortgage Trust, Structured Pass-Through Certificates, Series 2013-K502 | 3.291% | 3/25/45 | AAA | 2,982,589 | |||||||||||||||
495 | Freddie Mac Non Gold Participation Certificates 1L1462 | 2.479% | 8/01/36 | Aaa | 521,788 | |||||||||||||||
3,500 | GAHR Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-NRF | 1.726% | 12/15/16 | AAA | 3,488,035 |
76 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,500 | General Electric Capital Commercial Mortgage Corporation, Commercial Mortgage Pass-Through Certificates, Series 2007-C1 | 5.606% | 12/10/49 | Ba3 | $ | 2,542,043 | |||||||||||||
2,790 | General Electric Capital Credit Card Master Trust, Series 2012-6 | 1.360% | 8/17/20 | AAA | 2,776,052 | |||||||||||||||
2,000 | Goldman Sachs Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2014-GSFL | 2.676% | 7/15/31 | A– | 1,956,466 | |||||||||||||||
2,378 | Goldman Sachs Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2014-GSFL | 1.426% | 7/15/31 | AAA | 2,372,695 | |||||||||||||||
1,900 | Goldman Sachs Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2010-C1 | 3.679% | 8/10/43 | Aaa | 1,944,969 | |||||||||||||||
990 | Goldman Sachs Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2011-GC3 | 3.645% | 3/10/44 | Aaa | 988,784 | |||||||||||||||
2,099 | Goldman Sachs Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2011-GC5 | 2.999% | 8/10/44 | Aaa | 2,109,442 | |||||||||||||||
67 | Government National Mortgage Association Pool 8006 | 1.875% | 7/20/22 | Aaa | 68,529 | |||||||||||||||
15 | Government National Mortgage Association Pool 80106 | 1.875% | 8/20/27 | Aaa | 15,475 | |||||||||||||||
22 | Government National Mortgage Association Pool 80154 | 1.750% | 1/20/28 | Aaa | 22,111 | |||||||||||||||
61 | Government National Mortgage Association Pool 80283 | 1.750% | 5/20/29 | Aaa | 62,453 | |||||||||||||||
106 | Government National Mortgage Association Pool 80469 | 2.000% | 11/20/30 | Aaa | 110,452 | |||||||||||||||
37 | Government National Mortgage Association Pool 80507 | 1.750% | 4/20/31 | Aaa | 38,142 | |||||||||||||||
129 | Government National Mortgage Association Pool 80535 | 1.875% | 8/20/31 | Aaa | 133,706 | |||||||||||||||
23 | Government National Mortgage Association Pool 80580 | 1.750% | 2/20/32 | Aaa | 23,825 | |||||||||||||||
52 | Government National Mortgage Association Pool 8699 | 1.875% | 9/20/25 | Aaa | 53,379 | |||||||||||||||
48 | Government National Mortgage Association Pool 8824 | 2.000% | 8/20/21 | Aaa | 50,278 | |||||||||||||||
41 | Government National Mortgage Association Pool 8847 | 1.750% | 4/20/26 | Aaa | 42,745 | |||||||||||||||
190 | Government National Mortgage Association, Guaranteed REMIC Pass-Through Securities and MX Securities TrustR 2009-62 EJ | 4.500% | 5/16/38 | Aaa | 195,561 | |||||||||||||||
2,025 | GP Portfolio Trust 2014-GPP A | 3.176% | 2/15/27 | BBB– | 2,011,391 | |||||||||||||||
3,000 | Green Tree Agency Advance Funding Trust, Manufactured Housing Contract Pass-Through Certificates, Series 2015-T2 | 3.687% | 10/15/48 | AA | 2,968,350 | |||||||||||||||
4,500 | Greenwich Capital Commercial Funding Corporation, Commercial Mortgage Pass-Through Certificates Series 2007-GG9 | 5.475% | 3/10/39 | BBB | 4,603,517 | |||||||||||||||
3,100 | Huntington Auto Trust, Motor Vehicle Installment Payments, Series 2015-1 | 1.950% | 6/15/21 | AA+ | 3,066,932 | |||||||||||||||
2,500 | Hyatt Hotel Portfolio Trust, Mortgage Pass-Through Certificate, Series 2015-HYT | 2.126% | 11/15/29 | AA– | 2,509,497 | |||||||||||||||
669 | IMC Home Mortgage Company, Home Equity Loan Pass-Through Certificates, Series 1998-3 | 6.720% | 8/20/29 | AA | 684,950 | |||||||||||||||
4,196 | Impac Secured Assets Corporation, Mortgage Pass-Through Certificates, Series 2006-5 2A | 0.627% | 12/25/36 | Baa2 | 3,944,599 | |||||||||||||||
218 | IndyMac INDX Mortgage Loan Trust, Pass-Through Certificates, Series 2005-AR1 | 2.535% | 3/25/35 | BBB+ | 217,325 | |||||||||||||||
2,500 | Invitation Homes Trust 2013-SFR1 | 2.577% | 12/17/30 | Baa2 | 2,421,622 | |||||||||||||||
4,680 | Invitation Homes Trust 2013-SFR1 | 1.777% | 12/17/30 | Aa2 | 4,546,525 |
Nuveen Investments | 77 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,500 | Invitation Homes Trust 2014-SFR1 | 3.026% | 6/17/31 | Baa2 | $ | 2,463,470 | |||||||||||||
3,787 | Invitation Homes Trust 2014-SFR2 | 2.026% | 9/17/31 | Aa2 | 3,710,907 | |||||||||||||||
2,000 | Invitation Homes Trust 2014-SFR2 | 1.526% | 9/17/31 | Aaa | 1,962,977 | |||||||||||||||
2,000 | John Deere Owner Trust, Series 2015-A | 1.320% | 6/17/19 | Aaa | 1,989,296 | |||||||||||||||
95 | JPMorgan Chase Commercial Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2010-C1 | 3.853% | 6/15/43 | Aaa | 94,499 | |||||||||||||||
188 | JPMorgan Chase Commercial Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2010-C2 A1 | 2.749% | 11/15/43 | AAA | 188,085 | |||||||||||||||
3,000 | JPMorgan Chase Commercial Mortgage Securities Corporation, Pass-Through Certificates 2006-LDP6 | 5.565% | 4/15/43 | Baa3 | 3,010,952 | |||||||||||||||
4,999 | JPMorgan Madison Avenue Securities Trust, Mortgage Pass-Through Certificates, Series 2014-1 | 2.677% | 11/25/24 | BBB– | 5,011,606 | |||||||||||||||
2,888 | Master Resecuritization Trust 2009-1 | 6.000% | 10/25/36 | A | 3,018,951 | |||||||||||||||
2,750 | ML_CFC Commercial Mortgage Trust, Pass-Through Certificates, Series 2007-8 | 5.887% | 8/12/49 | BB | 2,819,181 | |||||||||||||||
34 | Mortgage Asset Securitization Transaction Inc., Alternative Loan Trust Mortgage Pass-Through Certificates, Series 2004-13 | 8.000% | 1/25/35 | BB | 34,034 | |||||||||||||||
821 | National Credit Union Administration, Guaranteed Notes Series 2011-R1 | 0.879% | 1/08/20 | Aaa | 823,942 | |||||||||||||||
54 | National Credit Union Administration, Guaranteed Notes, Series 2010-R1 | 1.840% | 10/07/20 | Aaa | 54,376 | |||||||||||||||
1,300 | Nationstar Agency Fund Trust, Series 2013-T2A | 4.212% | 2/18/48 | BBB | 1,303,562 | |||||||||||||||
2,400 | New Residential Advance Receivable Trust, Series 2015-T2 | 3.302% | 8/17/48 | AAA | 2,383,230 | |||||||||||||||
3,147 | New Residential Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2014-2A | 3.750% | 5/25/54 | AAA | 3,196,030 | |||||||||||||||
1,504 | New Residential Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2015-A1 | 3.750% | 5/28/52 | Aaa | 1,538,780 | |||||||||||||||
1,977 | NLY Commercial Mortgage Trust 2014-FL1 | 3.026% | 11/15/30 | A– | 1,969,132 | |||||||||||||||
2,350 | OMART Receivables Trust, Series 2015-T3 | 3.211% | 11/15/47 | AAA | 2,342,919 | |||||||||||||||
3,500 | Opteum Mortgage Acceptance Corporation, Asset Backed Pass-Through Certificates, Series 2005-1 | 1.282% | 2/25/35 | AA– | 3,355,433 | |||||||||||||||
2,761 | PennyMac Loan Trust, Series 2015-NPL1 | 4.000% | 3/25/55 | N/R | 2,746,364 | |||||||||||||||
357 | RBSSP Resecuritization Trust 2009-10 | 0.522% | 3/26/37 | N/R | 161,121 | |||||||||||||||
1,666 | RBSSP Resecuritization Trust 2009-5 | 0.922% | 8/26/37 | BBB | 1,584,835 | |||||||||||||||
2,171 | RBSSP Resecuritization Trust, Series 2012-8 1A1 | 0.525% | 10/26/36 | N/R | 2,098,284 | |||||||||||||||
4,400 | Santander Drive Auto Receivables Trust, Series 2014-1 | 1.590% | 10/15/18 | AAA | 4,398,134 | |||||||||||||||
4,205 | Social Professional Loan Program LLC, Series 2015-C | 2.510% | 8/25/33 | Aa2 | 4,121,992 | |||||||||||||||
108 | Structured Adjustable Rate Mortgage Loan Trust, Mortgage Pass-Through Certificates, Series 2004-11 | 2.621% | 8/25/34 | N/R | 107,746 | |||||||||||||||
2,634 | Structured Agency Credit Risk 2014-DN1 | 1.427% | 2/25/24 | Aa3 | 2,632,209 | |||||||||||||||
3,271 | Structured Agency Credit Risk Debt Notes, 2013-DN2 | 1.877% | 11/25/23 | A2 | 3,271,325 | |||||||||||||||
500 | Sway Residential Trust, Series 2014-1 | 4.726% | 1/17/32 | N/R | 496,647 | |||||||||||||||
238 | Thornburg Mortgage Securities Trust, Mortgage Loan Pass-Through Certificates, Series 2007-4 | 6.082% | 9/25/37 | BBB+ | 246,657 |
78 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 901 | Truman Capital Mortgage Loant Trust, Series 2014-NPL3 | 3.125% | 4/25/53 | N/R | $ | 897,599 | |||||||||||||
1 | U.S. Small Business Administration Guaranteed Participating Securities Participation Certificates, Series 2006-10A | 5.408% | 2/10/16 | Aaa | 1,028 | |||||||||||||||
95 | U.S. Small Business Administration Guaranteed Participating Securities, Participation Certificates, Series 2007-10A | 5.459% | 2/10/17 | Aaa | 98,866 | |||||||||||||||
1,685 | UBS-Barclays Commercial Mortgage Trust 2012-C2 | 1.006% | 5/10/63 | Aaa | 1,680,135 | |||||||||||||||
2,239 | US Residential Opportunity Fund Trust, Series 2015-1A | 3.721% | 1/27/35 | N/R | 2,224,854 | |||||||||||||||
2,006 | Vericrest Opportunity Loan Transferee, Series 2014-NPL8 | 3.375% | 10/26/54 | N/R | 1,986,831 | |||||||||||||||
2,857 | Vornado DP LLC Commercial Mortgage Credit Tenant Lease Series 2010-VNO | 2.970% | 9/13/28 | AAA | 2,928,216 | |||||||||||||||
3,109 | Walter Investment Management Company Capital Trust, Series 2012-AA | 4.549% | 10/16/50 | BBB | 3,125,640 | |||||||||||||||
5,688 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-LC22 | 1.639% | 9/15/58 | Aaa | 5,633,100 | |||||||||||||||
2,002 | Wells Fargo Home Equity Trust, Series 2005-2 | 0.967% | 4/25/35 | AA | 1,898,769 | |||||||||||||||
385 | Wells Fargo Mortagge Backed Securities Trust, Mortgage Pass-Through Certificate Series 2007-2 | 5.750% | 3/25/37 | Caa2 | 375,555 | |||||||||||||||
829 | Wells Fargo Mortgage Backed Securities Trust, Mortgage Pass-Through Certificate Series 2006-AR14 | 2.743% | 10/25/36 | Caa2 | 769,412 | |||||||||||||||
19 | Wells Fargo Mortgage Backed Securities, 2005-AR16 Class 3A2 | 2.710% | 3/25/35 | A+ | 18,713 | |||||||||||||||
$ | 285,599 | Total Asset-Backed and Mortgage-Backed Securities (cost $285,721,499) |
| 284,608,348 | ||||||||||||||||
Principal Amount (000) (6) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 0.5% | ||||||||||||||||||||
Mexico – 0.5% | ||||||||||||||||||||
495 | MXN | Mexico Bonos de DeSarrollo | 6.250% | 6/16/16 | A | $ | 2,905,190 | |||||||||||||
Total Sovereign Debt (cost $3,681,949) | 2,905,190 | |||||||||||||||||||
Total Long-Term Investments (cost $632,489,610) |
| 627,517,391 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 3.3% |
| |||||||||||||||||||
Money Market Funds – 3.3% | ||||||||||||||||||||
21,320,187 | Mount Vernon Securities Lending Trust Prime Portfolio, (8) | 0.108% (7) | $ | 21,320,187 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $21,320,187) |
| 21,320,187 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 1.7% | ||||||||||||||||||||
Money Market Funds – 1.7% | ||||||||||||||||||||
10,997,768 | First American Treasury Obligations Fund, Class Z | 0.473% (7) | $ | 10,997,768 | ||||||||||||||||
Total Short-Term Investments (cost $10,997,768) |
| 10,997,768 | ||||||||||||||||||
Total Investments (cost $664,807,565) – 102.9% |
| 659,835,346 | ||||||||||||||||||
Other Assets Less Liabilities – (2.9)% (9) |
| (18,387,280 | ) | |||||||||||||||||
Net Assets – 100% |
| $ | 641,448,066 |
Nuveen Investments | 79 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Investments in Derivatives as of December 31, 2015
Forward Foreign Currency Exchange Contracts outstanding:
Counterparty | Currency Contracts to Deliver | Notional Amount (Local Currency) | In Exchange For Currency | Notional Amount (Local Currency) | Settlement Date | Unrealized Appreciation Depreciation) (U.S. Dollars) | ||||||||||||||
Bank of America, N.A. | Mexican Peso | 50,300,000 | U.S. Dollar | 2,943,414 | 1/29/16 | $ | 31,146 |
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value | Variation Margin Receivable/ Payable | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (291 | ) | 3/16 | $ | (34,431,211 | ) | $ | (40,922 | ) | $ | 94,258 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a 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 $20,636,440. |
(4) | Perpetual security. Maturity date is not applicable. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(6) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(7) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(8) | 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 100% 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. |
(9) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities. |
I/O | Interest only security. |
MXN | Mexican Peso |
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. |
See accompanying notes to financial statements.
80 | Nuveen Investments |
Assets and Liabilities | December 31, 2015 (Unaudited) |
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Assets | ||||||||||||||||||||
Long-term investments, at value (cost $186,709,342, $437,682,106, $399,115,079, $67,453,159 and $632,489,610, respectively) | $ | 186,957,459 | $ | 430,221,309 | $ | 392,946,249 | $ | 68,509,670 | $ | 627,517,391 | ||||||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 8,950,753 | 40,469,109 | 3,513,550 | 3,362,425 | 21,320,187 | |||||||||||||||
Short-term investments, at value (cost approximates value) | 12,208,240 | 24,964,422 | 2,580,386 | 1,359,290 | 10,997,768 | |||||||||||||||
Cash collateral at brokers(1) | 255,000 | 222,247 | 309,000 | 82,700 | 290,000 | |||||||||||||||
Cash denominated in foreign currencies (cost $—, $266,728, $—, $— and $301, respectively) | — | 260,558 | — | — | 299 | |||||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | 404,557 | — | — | 31,146 | |||||||||||||||
Receivable for: | ||||||||||||||||||||
Dividends | — | — | 3,958 | — | — | |||||||||||||||
Due from broker | 3,340 | 18,576 | 1,290 | 605 | 11,655 | |||||||||||||||
Interest | 1,354,788 | 4,389,336 | 1,415,013 | 311,127 | 3,172,312 | |||||||||||||||
Investments sold | 33,908 | 24,181 | — | 11,467 | 203,701 | |||||||||||||||
Reclaims | — | 24,473 | — | — | — | |||||||||||||||
Shares sold | 1,311,358 | 329,852 | 2,141,746 | 811,731 | 1,241,404 | |||||||||||||||
Variation margin on futures contracts | 46,000 | 19,000 | 56,302 | 5,000 | — | |||||||||||||||
Variation margin on swap contracts | — | 951,520 | — | — | — | |||||||||||||||
Other assets | 46,657 | 59,090 | 51,515 | 28,408 | 73,604 | |||||||||||||||
Total assets | 211,167,503 | 502,358,230 | 403,019,009 | 74,482,423 | 664,859,467 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Unrealized depreciation on interest rate swaps | — | 187,101 | — | — | — | |||||||||||||||
Payable for: | ||||||||||||||||||||
Collateral from securities lending program | 8,950,753 | 40,469,109 | 3,513,550 | 3,362,425 | 21,320,187 | |||||||||||||||
Dividends | 223,431 | 809,702 | — | 51,179 | 583,979 | |||||||||||||||
Investments purchased | 6,795,523 | 24,567,167 | — | 250,245 | — | |||||||||||||||
Shares redeemed | 665,850 | 2,335,900 | 1,138,576 | 65,756 | 1,030,411 | |||||||||||||||
Variation margin on futures contracts | 61,517 | 98,234 | 70,969 | 18,958 | 40,922 | |||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Management fees | 66,023 | 146,185 | 86,447 | 20,339 | 195,884 | |||||||||||||||
Directors fees | 18,137 | 28,166 | 15,142 | 373 | 37,320 | |||||||||||||||
12b-1 distribution and service fees | 3,935 | 25,584 | 26,306 | 3,409 | 48,325 | |||||||||||||||
Other | 64,333 | 154,782 | 242,834 | 42,698 | 154,373 | |||||||||||||||
Total liabilities | 16,849,502 | 68,821,930 | 5,093,824 | 3,815,382 | 23,411,401 | |||||||||||||||
Net assets | $ | 194,318,001 | $ | 433,536,300 | $ | 397,925,185 | $ | 70,667,041 | $ | 641,448,066 |
(1) – Cash pledged to collateralize the net payment obligations for investments in derivatives.
See accompanying notes to financial statements.
Nuveen Investments | 81 |
Statement of Assets and Liabilities (Unaudited) (continued)
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Class A Shares | ||||||||||||||||||||
Net assets | $ | 13,877,486 | $ | 63,942,056 | $ | 59,670,676 | $ | 11,455,780 | $ | 95,315,739 | ||||||||||
Shares outstanding | 1,427,717 | 5,980,467 | 5,596,873 | 1,308,315 | 9,717,517 | |||||||||||||||
Net asset value (“NAV”) per share | $ | 9.72 | $ | 10.69 | $ | 10.66 | $ | 8.76 | $ | 9.81 | ||||||||||
Offering price per share (NAV per share plus maximum sales charge of 3.00%, 4.25%, 4.25%, 3.00% and 2.25%, respectively, of offering price) | $ | 10.02 | $ | 11.16 | $ | 11.13 | $ | 9.03 | $ | 10.04 | ||||||||||
Class C Shares | ||||||||||||||||||||
Net assets | $ | 1,178,013 | �� | $ | 8,324,358 | $ | 12,168,094 | $ | 1,115,973 | $ | 33,267,820 | |||||||||
Shares outstanding | 121,602 | 782,097 | 1,154,165 | 127,225 | 3,379,846 | |||||||||||||||
NAV and offering price per share | $ | 9.69 | $ | 10.64 | $ | 10.54 | $ | 8.77 | $ | 9.84 | ||||||||||
Class R3 Shares | ||||||||||||||||||||
Net assets |
$ |
— |
|
$ |
12,007,396 |
|
$ |
9,821,334 |
|
$ |
54,951 |
|
$ |
480,337 |
| |||||
Shares outstanding | — | 1,119,096 | 928,144 | 6,275 | 48,891 | |||||||||||||||
NAV and offering price per share | $ | — | $ | 10.73 | $ | 10.58 | $ | 8.76 | $ | 9.82 | ||||||||||
Class R6 Shares | ||||||||||||||||||||
Net assets | $ | 55,718,944 | $ | 25,374,295 | $ | 2,970,008 | $ | — | $ | 67,560,935 | ||||||||||
Shares outstanding |
|
5,713,481 |
|
|
2,372,057 |
|
|
275,426 |
|
|
— |
|
|
6,875,759 |
| |||||
NAV and offering price per share | $ | 9.75 | $ | 10.70 | $ | 10.78 | $ | — | $ | 9.83 | ||||||||||
Class I Shares | ||||||||||||||||||||
Net assets | $ | 123,543,558 | $ | 323,888,195 | $ | 313,295,073 | $ | 58,040,337 | $ | 444,823,235 | ||||||||||
Shares outstanding | 12,760,194 | 30,340,831 | 29,090,439 | 6,624,123 | 45,312,662 | |||||||||||||||
NAV and offering price per share |
$ |
9.68 |
|
$ |
10.67 |
|
$ |
10.77 |
|
$ |
8.76 |
|
$ |
9.82 |
| |||||
Net assets consist of: | ||||||||||||||||||||
Capital paid-in | $ | 196,164,268 | $ | 448,289,302 | $ | 408,912,930 | $ | 73,888,523 | $ | 659,428,355 | ||||||||||
Undistributed (Over-distribution of) net investment income | (989,787 | ) | 454,306 | (1,165,997 | ) | (34,853 | ) | (1,138,128 | ) | |||||||||||
Accumulated net realized gain (loss) | (1,212,165 | ) | (7,091,391 | ) | (3,815,218 | ) | (4,266,494 | ) | (11,995,321 | ) | ||||||||||
Net unrealized appreciation (depreciation) |
|
355,685 |
|
|
(8,115,917 |
) |
|
(6,006,530 |
) |
|
1,079,865 |
|
|
(4,846,840 |
) | |||||
Net assets | $ | 194,318,001 | $ | 433,536,300 | $ | 397,925,185 | $ | 70,667,041 | $ | 641,448,066 | ||||||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | 2 billion | 2 billion | |||||||||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
See accompanying notes to financial statements.
82 | Nuveen Investments |
Operations | Six Months Ended December 31, 2015 (Unaudited) |
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Investment Income | ||||||||||||||||||||
Dividend income (net of foreign tax withheld of $—, $—, $281, $— and $—, respectively) | $ | — | $ | 225,509 | $ | 24,317 | $ | — | $ | — | ||||||||||
Interest income | 3,450,860 | 11,802,156 | 1,315,824 | 743,955 | 8,016,751 | |||||||||||||||
Securities lending income, net | 16,936 | 96,654 | 9,983 | 2,011 | 46,924 | |||||||||||||||
Total investment income | 3,467,796 | 12,124,319 | 1,350,124 | 745,966 | 8,063,675 | |||||||||||||||
Expenses | ||||||||||||||||||||
Management fees | 518,729 | 1,167,969 | 839,388 | 167,241 | 1,375,272 | |||||||||||||||
12b-1 service fees – Class A Shares | 17,493 | 84,484 | 61,685 | 13,377 | 123,789 | |||||||||||||||
12b-1 distribution and service fees – Class C Shares | 5,250 | 40,427 | 50,955 | 5,001 | 166,043 | |||||||||||||||
12b-1 distribution and service fees – Class R3 Shares | — | 20,392 | 15,255 | 335 | 481 | |||||||||||||||
Shareholder servicing agent fees | 44,016 | 160,595 | 398,387 | 19,521 | 146,663 | |||||||||||||||
Custodian fees | 37,677 | 81,534 | 42,906 | 23,843 | 83,072 | |||||||||||||||
Directors fees | 2,844 | 6,480 | 5,116 | 885 | 8,997 | |||||||||||||||
Professional fees | 27,767 | 40,069 | 35,046 | 22,118 | 45,658 | |||||||||||||||
Shareholder reporting expenses | 6,596 | 19,688 | 24,983 | 4,755 | 26,401 | |||||||||||||||
Federal and state registration fees | 25,822 | 36,105 | 37,566 | 26,396 | 38,706 | |||||||||||||||
Other | 7,699 | 14,645 | 7,534 | 4,156 | 16,372 | |||||||||||||||
Total expenses before fee waiver/expense reimbursement | 693,893 | 1,672,388 | 1,518,821 | 287,628 | 2,031,454 | |||||||||||||||
Fee waiver/expense reimbursement | (92,407 | ) | (226,377 | ) | (226,967 | ) | (55,522 | ) | (131,183 | ) | ||||||||||
Net expenses | 601,486 | 1,446,011 | 1,291,854 | 232,106 | 1,900,271 | |||||||||||||||
Net investment income (loss) | 2,866,310 | 10,678,308 | 58,270 | 513,860 | 6,163,404 | |||||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (556,777 | ) | (5,450,108 | ) | (1,343,511 | ) | 88,204 | (1,478,829 | ) | |||||||||||
Forward foreign currency exchange contracts | — | 2,429,570 | — | — | 32,749 | |||||||||||||||
Futures contracts | (544,406 | ) | (690,724 | ) | (212,332 | ) | (108,161 | ) | 77,731 | |||||||||||
Swaps | (558,892 | ) | (2,047,029 | ) | (583,194 | ) | (66,161 | ) | (1,482,338 | ) | ||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | (2,422,896 | ) | (19,078,750 | ) | (7,645,319 | ) | (299,783 | ) | (6,878,228 | ) | ||||||||||
Forward foreign currency exchange contracts | — | 160,895 | — | — | 31,146 | |||||||||||||||
Futures contracts | 350,017 | 65,354 | 235,187 | 23,126 | 294,243 | |||||||||||||||
Swaps | 157,115 | 27,864 | 80,776 | (10,105 | ) | 258,316 | ||||||||||||||
Net realized and unrealized gain (loss) | (3,575,839 | ) | (24,582,928 | ) | (9,468,393 | ) | (372,880 | ) | (9,145,210 | ) | ||||||||||
Net increase (decrease) in net assets from operations | $ | (709,529 | ) | $ | (13,904,620 | ) | $ | (9,410,123 | ) | $ | 140,980 | $ | (2,981,806 | ) |
See accompanying notes to financial statements.
Nuveen Investments | 83 |
Changes in Net Assets | (Unaudited) |
Core Bond | Core Plus Bond | |||||||||||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 2,866,310 | $ | 7,814,108 | $ | 10,678,308 | $ | 23,893,497 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments and foreign currency | (556,777 | ) | 5,031,234 | (5,450,108 | ) | 4,252,552 | ||||||||||||
Forward foreign currency exchange contracts | — | — | 2,429,570 | 1,634,643 | ||||||||||||||
Futures contracts | (544,406 | ) | (612,361 | ) | (690,724 | ) | (3,194,614 | ) | ||||||||||
Swaps | (558,892 | ) | (124,922 | ) | (2,047,029 | ) | (1,449,357 | ) | ||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments and foreign currency | (2,422,896 | ) | (8,406,743 | ) | (19,078,750 | ) | (25,921,625 | ) | ||||||||||
Forward foreign currency exchange contracts | — | — | 160,895 | 113,116 | ||||||||||||||
Futures contracts | 350,017 | (289,855 | ) | 65,354 | (10,137 | ) | ||||||||||||
Swaps | 157,115 | (55,935 | ) | 27,864 | (522,059 | ) | ||||||||||||
Net increase (decrease) in net assets from operations | (709,529 | ) | 3,355,526 | (13,904,620 | ) | (1,203,984 | ) | |||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A Shares | (188,095 | ) | (410,574 | ) | (1,335,867 | ) | (2,692,431 | ) | ||||||||||
Class C Shares | (10,040 | ) | (15,077 | ) | (128,329 | ) | (283,270 | ) | ||||||||||
Class R3 Shares | — | — | (152,517 | ) | (77,205 | ) | ||||||||||||
Class R6 Shares | (838,133 | ) | (606,476 | ) | (589,931 | ) | (819,814 | ) | ||||||||||
Class I Shares | (2,223,723 | ) | (7,655,076 | ) | (8,243,779 | ) | (19,556,879 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A Shares | (91,416 | ) | (263,674 | ) | (114,029 | ) | (107,721 | ) | ||||||||||
Class C Shares | (7,303 | ) | (13,719 | ) | (14,202 | ) | (14,759 | ) | ||||||||||
Class R3 Shares | — | — | (20,809 | ) | (2,022 | ) | ||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | (838,155 | ) | (4,644,858 | ) | (612,202 | ) | (758,094 | ) | ||||||||||
Return of capital: | ||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||
Decrease in net assets from distributions to shareholders | (4,196,865 | ) | (13,609,454 | ) | (11,211,665 | ) | (24,312,195 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 28,382,378 | 85,693,256 | 30,867,658 | 165,027,733 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 1,926,094 | 5,944,510 | 5,403,547 | 10,857,907 | ||||||||||||||
30,308,472 | 91,637,766 | 36,271,205 | 175,885,640 | |||||||||||||||
Cost of shares redeemed | (68,116,556 | ) | (189,624,091 | ) | (144,097,666 | ) | (175,913,051 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (37,808,084 | ) | (97,986,325 | ) | (107,826,461 | ) | (27,411 | ) | ||||||||||
Net increase (decrease) in net assets | (42,714,478 | ) | (108,240,253 | ) | (132,942,746 | ) | (25,543,590 | ) | ||||||||||
Net assets at the beginning of period | 237,032,479 | 345,272,732 | 566,479,046 | 592,022,636 | ||||||||||||||
Net assets at the end of period | $ | 194,318,001 | $ | 237,032,479 | $ | 433,536,300 | $ | 566,479,046 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (989,787 | ) | $ | (596,106 | ) | $ | 454,306 | $ | 226,421 |
See accompanying notes to financial statements.
84 | Nuveen Investments |
Inflation Protected Securities | Intermediate Government Bond | |||||||||||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 58,270 | $ | (358,198 | ) | $ | 513,860 | $ | 1,173,696 | |||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments and foreign currency | (1,343,511 | ) | 421,417 | 88,204 | 248,726 | |||||||||||||
Forward foreign currency exchange contracts | — | — | — | — | ||||||||||||||
Futures contracts | (212,332 | ) | (754,218 | ) | (108,161 | ) | (148,062 | ) | ||||||||||
Swaps | (583,194 | ) | (87,457 | ) | (66,161 | ) | — | |||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments and foreign currency | (7,645,319 | ) | (5,873,341 | ) | (299,783 | ) | (230,005 | ) | ||||||||||
Forward foreign currency exchange contracts | — | — | — | — | ||||||||||||||
Futures contracts | 235,187 | (139,680 | ) | 23,126 | 9,364 | |||||||||||||
Swaps | 80,776 | (9,837 | ) | (10,105 | ) | 10,105 | ||||||||||||
Net increase (decrease) in net assets from operations | (9,410,123 | ) | (6,801,314 | ) | 140,980 | 1,063,824 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A Shares | — | (152,769 | ) | (65,903 | ) | (95,950 | ) | |||||||||||
Class C Shares | — | (11,491 | ) | (2,508 | ) | (1,935 | ) | |||||||||||
Class R3 Shares | — | (17,756 | ) | (585 | ) | (1,061 | ) | |||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | — | (2,430,339 | ) | (439,651 | ) | (989,317 | ) | |||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||
Return of capital: | ||||||||||||||||||
Class A Shares | — | (122,017 | ) | — | — | |||||||||||||
Class C Shares | — | (25,540 | ) | — | — | |||||||||||||
Class R3 Shares | — | (13,085 | ) | — | — | |||||||||||||
Class R6 Shares | — | (1,246 | ) | — | — | |||||||||||||
Class I Shares | — | (1,261,968 | ) | — | — | |||||||||||||
Decrease in net assets from distributions to shareholders | — | (4,036,211 | ) | (508,647 | ) | (1,088,263 | ) | |||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 97,073,324 | 144,694,926 | 11,328,329 | 34,529,466 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | — | 961,850 | 174,211 | 192,564 | ||||||||||||||
97,073,324 | 145,656,776 | 11,502,540 | 34,722,030 | |||||||||||||||
Cost of shares redeemed | (79,919,361 | ) | (100,530,682 | ) | (16,130,947 | ) | (55,617,506 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | 17,153,963 | 45,126,094 | (4,628,407 | ) | (20,895,476 | ) | ||||||||||||
Net increase (decrease) in net assets | 7,743,840 | 34,288,569 | (4,996,074 | ) | (20,919,915 | ) | ||||||||||||
Net assets at the beginning of period | 390,181,345 | 355,892,776 | 75,663,115 | 96,583,030 | ||||||||||||||
Net assets at the end of period | $ | 397,925,185 | $ | 390,181,345 | $ | 70,667,041 | $ | 75,663,115 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (1,165,997 | ) | $ | (1,224,267 | ) | $ | (34,853 | ) | $ | (40,066 | ) |
See accompanying notes to financial statements.
Nuveen Investments | 85 |
Statement of Changes in Net Assets (Unaudited) (continued)
Short Term Bond | ||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 6,163,404 | $ | 16,811,917 | ||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | (1,478,829 | ) | (802,458 | ) | ||||
Forward foreign currency exchange contracts | 32,749 | — | ||||||
Futures contracts | 77,731 | (2,388,015 | ) | |||||
Swaps | (1,482,338 | ) | (595,864 | ) | ||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | (6,878,228 | ) | (7,953,868 | ) | ||||
Forward foreign currency exchange contracts | 31,146 | — | ||||||
Futures contracts | 294,243 | (363,216 | ) | |||||
Swaps | 258,316 | (56,331 | ) | |||||
Net increase (decrease) in net assets from operations | (2,981,806 | ) | 4,652,165 | |||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A Shares | (736,450 | ) | (1,658,982 | ) | ||||
Class C Shares | (116,680 | ) | (269,364 | ) | ||||
Class R3 Shares | (1,164 | ) | (9,008 | ) | ||||
Class R6 Shares | (445,337 | ) | (212,174 | ) | ||||
Class I Shares | (4,360,823 | ) | (14,124,963 | ) | ||||
From accumulated net realized gains: | ||||||||
Class A Shares | — | — | ||||||
Class C Shares | — | — | ||||||
Class R3 Shares | — | — | ||||||
Class R6 Shares | — | — | ||||||
Class I Shares | — | — | ||||||
Return of capital: | ||||||||
Class A Shares | — | — | ||||||
Class C Shares | — | — | ||||||
Class R3 Shares | — | — | ||||||
Class R6 Shares | — | — | ||||||
Class I Shares | — | — | ||||||
Decrease in net assets from distributions to shareholders | (5,660,454 | ) | (16,274,491 | ) | ||||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 135,027,232 | 309,686,804 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 2,097,204 | 4,640,699 | ||||||
137,124,436 | 314,327,503 | |||||||
Cost of shares redeemed | (177,758,095 | ) | (683,861,963 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (40,633,659 | ) | (369,534,460 | ) | ||||
Net increase (decrease) in net assets | (49,275,919 | ) | (381,156,786 | ) | ||||
Net assets at the beginning of period | 690,723,985 | 1,071,880,771 | ||||||
Net assets at the end of period | $ | 641,448,066 | $ | 690,723,985 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (1,138,128 | ) | $ | (1,641,078 | ) |
See accompanying notes to financial statements.
86 | Nuveen Investments |
THIS PAGE INTENTIONALLY LEFT BLANK
Nuveen Investments | 87 |
Highlights (Unaudited)
Core Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||||
2016(g) | $ | 9.97 | $ | 0.12 | $ | (0.18 | ) | $ | (0.06 | ) | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.19 | ) | $ | 9.72 | |||||||||||||
2015 | 10.36 | 0.25 | (0.19 | ) | 0.06 | (0.28 | ) | (0.17 | ) | (0.45 | ) | 9.97 | ||||||||||||||||||||||
2014 | 10.13 | 0.24 | 0.35 | 0.59 | (0.22 | ) | (0.14 | ) | (0.36 | ) | 10.36 | |||||||||||||||||||||||
2013 | 10.67 | 0.18 | (0.20 | ) | (0.02 | ) | (0.18 | ) | (0.34 | ) | (0.52 | ) | 10.13 | |||||||||||||||||||||
2012 | 10.47 | 0.29 | 0.23 | 0.52 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 10.67 | |||||||||||||||||||||||
2011 | 10.33 | 0.33 | 0.14 | 0.47 | (0.33 | ) | — | (0.33 | ) | 10.47 | ||||||||||||||||||||||||
Class C (1/11) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.94 | 0.08 | (0.17 | ) | (0.09 | ) | (0.10 | ) | (0.06 | ) | (0.16 | ) | 9.69 | |||||||||||||||||||||
2015 | 10.32 | 0.17 | (0.19 | ) | (0.02 | ) | (0.19 | ) | (0.17 | ) | (0.36 | ) | 9.94 | |||||||||||||||||||||
2014 | 10.08 | 0.16 | 0.36 | 0.52 | (0.14 | ) | (0.14 | ) | (0.28 | ) | 10.32 | |||||||||||||||||||||||
2013 | 10.62 | 0.09 | (0.19 | ) | (0.10 | ) | (0.09 | ) | (0.35 | ) | (0.44 | ) | 10.08 | |||||||||||||||||||||
2012 | 10.44 | 0.19 | 0.22 | 0.41 | (0.22 | ) | (0.01 | ) | (0.23 | ) | 10.62 | |||||||||||||||||||||||
2011(e) | 10.37 | 0.12 | 0.06 | 0.18 | (0.11 | ) | — | (0.11 | ) | 10.44 | ||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.94 | 0.13 | (0.17 | ) | (0.04 | ) | (0.15 | ) | — | (0.15 | ) | 9.75 | ||||||||||||||||||||||
2015(f) | 10.22 | 0.12 | (0.27 | ) | (0.15 | ) | (0.13 | ) | — | (0.13 | ) | 9.94 | ||||||||||||||||||||||
Class I (1/93) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.93 | 0.13 | (0.17 | ) | (0.04 | ) | (0.15 | ) | (0.06 | ) | (0.21 | ) | 9.68 | |||||||||||||||||||||
2015 | 10.32 | 0.27 | (0.19 | ) | 0.08 | (0.30 | ) | (0.17 | ) | (0.47 | ) | 9.93 | ||||||||||||||||||||||
2014 | 10.09 | 0.26 | 0.22 | 0.48 | (0.11 | ) | (0.14 | ) | (0.25 | ) | 10.32 | |||||||||||||||||||||||
2013 | 10.63 | 0.20 | (0.20 | ) | — | (0.21 | ) | (0.33 | ) | (0.54 | ) | 10.09 | ||||||||||||||||||||||
2012 | 10.43 | 0.30 | 0.23 | 0.53 | (0.32 | ) | (0.01 | ) | (0.33 | ) | 10.63 | |||||||||||||||||||||||
2011 | 10.29 | 0.35 | 0.14 | 0.49 | (0.35 | ) | — | (0.35 | ) | 10.43 |
88 | 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) | ||||||||||||||||||||||||
(0.53 | )% | $ | 13,877 | 0.86 | %* | 2.25 | %* | 0.78 | %* | 2.34 | %* | 33 | % | |||||||||||||||||
0.52 | 14,448 | 0.85 | 2.34 | 0.78 | 2.40 | 44 | ||||||||||||||||||||||||
5.94 | 14,857 | 0.81 | 2.29 | 0.78 | 2.32 | 49 | ||||||||||||||||||||||||
(0.38 | ) | 18,331 | 0.79 | 1.63 | 0.78 | 1.65 | 85 | |||||||||||||||||||||||
4.93 | 21,262 | 0.95 | 2.61 | 0.85 | 2.70 | 75 | ||||||||||||||||||||||||
4.70 | 22,502 | 0.94 | 3.10 | 0.85 | 3.20 | 58 | ||||||||||||||||||||||||
(0.92 | ) | 1,178 | 1.62 | * | 1.51 | * | 1.53 | * | 1.60 | * | 33 | |||||||||||||||||||
(0.20 | ) | 971 | 1.61 | 1.59 | 1.53 | 1.67 | 44 | |||||||||||||||||||||||
5.24 | 514 | 1.56 | 1.54 | 1.53 | 1.57 | 49 | ||||||||||||||||||||||||
(1.17 | ) | 585 | 1.54 | 0.87 | 1.53 | 0.88 | 85 | |||||||||||||||||||||||
3.97 | 1,568 | 1.69 | 1.79 | 1.67 | 1.81 | 75 | ||||||||||||||||||||||||
1.76 | 1,152 | 1.79 | * | 2.46 | * | 1.70 | * | 2.56 | * | 58 | ||||||||||||||||||||
(0.45 | ) | 55,719 | 0.57 | * | 2.55 | * | 0.48 | * | 2.63 | * | 33 | |||||||||||||||||||
(1.46 | ) | 45,145 | 0.56 | * | 2.60 | * | 0.48 | * | 2.68 | * | 44 | |||||||||||||||||||
(0.41 | ) | 123,544 | 0.61 | * | 2.49 | * | 0.53 | * | 2.57 | * | 33 | |||||||||||||||||||
0.78 | 176,468 | 0.59 | 2.59 | 0.53 | 2.65 | 44 | ||||||||||||||||||||||||
6.21 | 329,901 | 0.56 | 2.53 | 0.53 | 2.56 | 49 | ||||||||||||||||||||||||
(0.16 | ) | 481,088 | 0.54 | 1.88 | 0.53 | 1.89 | 85 | |||||||||||||||||||||||
5.18 | 621,066 | 0.70 | 2.85 | 0.68 | 2.87 | 75 | ||||||||||||||||||||||||
4.76 | 657,129 | 0.74 | 3.30 | 0.70 | 3.35 | 58 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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. |
(e) | For the period January 18, 2011 (commencement of operations) through June 30, 2011. |
(f) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(g) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 89 |
Financial Highlights (Unaudited) (continued)
Core Plus Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||||
2016(g) | $ | 11.25 | $ | 0.23 | $ | (0.55 | ) | $ | (0.32 | ) | $ | (0.22 | ) | $ | (0.02 | ) | $ | (0.24 | ) | $ | 10.69 | |||||||||||||
2015 | 11.75 | 0.45 | (0.49 | ) | (0.04 | ) | (0.44 | ) | (0.02 | ) | (0.46 | ) | 11.25 | |||||||||||||||||||||
2014 | 11.46 | 0.46 | 0.45 | 0.91 | (0.43 | ) | (0.19 | ) | (0.62 | ) | 11.75 | |||||||||||||||||||||||
2013 | 11.64 | 0.41 | (0.12 | ) | 0.29 | (0.42 | ) | (0.05 | ) | (0.47 | ) | 11.46 | ||||||||||||||||||||||
2012 | 11.44 | 0.41 | 0.21 | 0.62 | (0.42 | ) | — | (0.42 | ) | 11.64 | ||||||||||||||||||||||||
2011 | 11.22 | 0.43 | 0.21 | 0.64 | (0.42 | ) | — | (0.42 | ) | 11.44 | ||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||
2016(g) | 11.20 | 0.18 | (0.54 | ) | (0.36 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | 10.64 | |||||||||||||||||||||
2015 | 11.69 | 0.36 | (0.48 | ) | (0.12 | ) | (0.35 | ) | (0.02 | ) | (0.37 | ) | 11.20 | |||||||||||||||||||||
2014 | 11.40 | 0.37 | 0.45 | 0.82 | (0.34 | ) | (0.19 | ) | (0.53 | ) | 11.69 | |||||||||||||||||||||||
2013 | 11.59 | 0.32 | (0.12 | ) | 0.20 | (0.34 | ) | (0.05 | ) | (0.39 | ) | 11.40 | ||||||||||||||||||||||
2012 | 11.40 | 0.32 | 0.21 | 0.53 | (0.34 | ) | — | (0.34 | ) | 11.59 | ||||||||||||||||||||||||
2011 | 11.18 | 0.34 | 0.21 | 0.55 | (0.33 | ) | — | (0.33 | ) | 11.40 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2016(g) | 11.29 | 0.21 | (0.54 | ) | (0.33 | ) | (0.21 | ) | (0.02 | ) | (0.23 | ) | 10.73 | |||||||||||||||||||||
2015 | 11.80 | 0.42 | (0.50 | ) | (0.08 | ) | (0.41 | ) | (0.02 | ) | (0.43 | ) | 11.29 | |||||||||||||||||||||
2014 | 11.51 | 0.43 | 0.46 | 0.89 | (0.41 | ) | (0.19 | ) | (0.60 | ) | 11.80 | |||||||||||||||||||||||
2013 | 11.70 | 0.38 | (0.12 | ) | 0.26 | (0.40 | ) | (0.05 | ) | (0.45 | ) | 11.51 | ||||||||||||||||||||||
2012 | 11.50 | 0.38 | 0.22 | 0.60 | (0.40 | ) | — | (0.40 | ) | 11.70 | ||||||||||||||||||||||||
2011 | 11.27 | 0.40 | 0.22 | 0.62 | (0.39 | ) | — | (0.39 | ) | 11.50 | ||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||
2016(g) | 11.23 | 0.24 | (0.54 | ) | (0.30 | ) | (0.23 | ) | — | (0.23 | ) | 10.70 | ||||||||||||||||||||||
2015(f) | 11.48 | 0.22 | (0.26 | ) | (0.04 | ) | (0.21 | ) | — | (0.21 | ) | 11.23 | ||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||
2016(g) | 11.24 | 0.24 | (0.56 | ) | (0.32 | ) | (0.23 | ) | (0.02 | ) | (0.25 | ) | 10.67 | |||||||||||||||||||||
2015 | 11.74 | 0.48 | (0.49 | ) | (0.01 | ) | (0.47 | ) | (0.02 | ) | (0.49 | ) | 11.24 | |||||||||||||||||||||
2014 | 11.44 | 0.49 | 0.46 | 0.95 | (0.46 | ) | (0.19 | ) | (0.65 | ) | 11.74 | |||||||||||||||||||||||
2013 | 11.64 | 0.44 | (0.14 | ) | 0.30 | (0.45 | ) | (0.05 | ) | (0.50 | ) | 11.44 | ||||||||||||||||||||||
2012 | 11.44 | 0.44 | 0.21 | 0.65 | (0.45 | ) | — | (0.45 | ) | 11.64 | ||||||||||||||||||||||||
2011 | 11.21 | 0.46 | 0.22 | 0.68 | (0.45 | ) | — | (0.45 | ) | 11.44 |
90 | 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)(e) | ||||||||||||||||||||||||
(2.89 | )% | $ | 63,942 | 0.86 | %* | 3.97 | %* | 0.77 | %* | 4.06 | %* | 27 | % | |||||||||||||||||
(0.41 | ) | 69,968 | 0.85 | 3.80 | 0.77 | 3.88 | 44 | |||||||||||||||||||||||
8.23 | 68,728 | 0.84 | 3.89 | 0.77 | 3.97 | 50 | ||||||||||||||||||||||||
2.40 | 79,740 | 0.81 | 3.42 | 0.77 | 3.46 | 46 | ||||||||||||||||||||||||
5.52 | 83,264 | 0.97 | 3.51 | 0.93 | 3.55 | 98 | ||||||||||||||||||||||||
5.73 | 85,980 | 0.99 | 3.72 | 0.94 | 3.77 | 91 | ||||||||||||||||||||||||
(3.29 | ) | 8,324 | 1.61 | * | 3.22 | * | 1.52 | * | 3.31 | * | 27 | |||||||||||||||||||
(1.10 | ) | 8,580 | 1.60 | 3.06 | 1.52 | 3.15 | 44 | |||||||||||||||||||||||
7.43 | 7,696 | 1.59 | 3.13 | 1.52 | 3.20 | 50 | ||||||||||||||||||||||||
1.59 | 4,200 | 1.56 | 2.67 | 1.52 | 2.71 | 46 | ||||||||||||||||||||||||
4.68 | 4,603 | 1.72 | 2.76 | 1.67 | 2.80 | 98 | ||||||||||||||||||||||||
4.97 | 3,711 | 1.74 | 2.97 | 1.69 | 3.02 | 91 | ||||||||||||||||||||||||
(2.99 | ) | 12,007 | 1.11 | * | 3.72 | * | 1.02 | * | 3.81 | * | 27 | |||||||||||||||||||
(0.70 | ) | 3,751 | 1.10 | 3.57 | 1.02 | 3.65 | 44 | |||||||||||||||||||||||
7.97 | 638 | 1.10 | 3.65 | 1.02 | 3.73 | 50 | ||||||||||||||||||||||||
2.11 | 350 | 1.06 | 3.18 | 1.02 | 3.22 | 46 | ||||||||||||||||||||||||
5.27 | 313 | 1.22 | 3.24 | 1.18 | 3.27 | 98 | ||||||||||||||||||||||||
5.54 | 380 | 1.23 | 3.47 | 1.19 | 3.52 | 91 | ||||||||||||||||||||||||
(2.75 | ) | 25,374 | 0.55 | * | 4.27 | * | 0.47 | * | 4.36 | * | 27 | |||||||||||||||||||
(0.29 | ) | 43,680 | 0.54 | * | 4.14 | * | 0.46 | * | 4.22 | * | 44 | |||||||||||||||||||
(2.85 | ) | 323,888 | 0.61 | * | 4.21 | * | 0.52 | * | 4.30 | * | 27 | |||||||||||||||||||
(0.15 | ) | 440,499 | 0.60 | 4.04 | 0.52 | 4.12 | 44 | |||||||||||||||||||||||
8.64 | 514,961 | 0.60 | 4.17 | 0.52 | 4.24 | 50 | ||||||||||||||||||||||||
2.52 | 588,627 | 0.56 | 3.67 | 0.52 | 3.71 | 46 | ||||||||||||||||||||||||
5.79 | 718,505 | 0.72 | 3.76 | 0.68 | 3.80 | 98 | ||||||||||||||||||||||||
6.09 | 925,541 | 0.74 | 3.97 | 0.69 | 4.02 | 91 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For fiscal years beginning after June 30, 2011, the Fund will no longer exclude dollar roll transactions, where applicable. |
(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. |
(f) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(g) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 91 |
Financial Highlights (Unaudited) (continued)
Inflation Protected Securities
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||
Class (Commencement
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||
Class A (10/04) |
| |||||||||||||||||||||||||||||||||||||
2016(f) | $ | 10.92 | $ | (0.02 | ) | $ | (0.24 | ) | $ | (0.26 | ) | $ | — | $ | — | $ | — | $ | — | $ | 10.66 | |||||||||||||||||
2015 | 11.26 | (0.03 | ) | (0.20 | ) | (0.23 | ) | (0.07 | ) | — | (0.04 | ) | (0.11 | ) | 10.92 | |||||||||||||||||||||||
2014 | 11.08 | 0.15 | 0.32 | 0.47 | (0.09 | ) | (0.20 | ) | — | (0.29 | ) | 11.26 | ||||||||||||||||||||||||||
2013 | 11.80 | 0.07 | (0.66 | ) | (0.59 | ) | (0.13 | ) | — | — | (0.13 | ) | 11.08 | |||||||||||||||||||||||||
2012 | 10.94 | 0.23 | 1.01 | 1.24 | (0.38 | ) | — | — | (0.38 | ) | 11.80 | |||||||||||||||||||||||||||
2011 | 10.33 | 0.35 | 0.40 | 0.75 | (0.14 | ) | — | — | (0.14 | ) | 10.94 | |||||||||||||||||||||||||||
Class C (10/04) |
| |||||||||||||||||||||||||||||||||||||
2016(f) | 10.84 | (0.06 | ) | (0.24 | ) | (0.30 | ) | — | — | — | — | 10.54 | ||||||||||||||||||||||||||
2015 | 11.21 | (0.11 | ) | (0.20 | ) | (0.31 | ) | (0.02 | ) | — | (0.04 | ) | (0.06 | ) | 10.84 | |||||||||||||||||||||||
2014 | 11.03 | 0.06 | 0.35 | 0.41 | (0.03 | ) | (0.20 | ) | — | (0.23 | ) | 11.21 | ||||||||||||||||||||||||||
2013 | 11.72 | (0.03 | ) | (0.60 | ) | (0.63 | ) | (0.06 | ) | — | — | (0.06 | ) | 11.03 | ||||||||||||||||||||||||
2012 | 10.84 | 0.14 | 1.00 | 1.14 | (0.26 | ) | — | — | (0.26 | ) | 11.72 | |||||||||||||||||||||||||||
2011 | 10.24 | 0.26 | 0.41 | 0.67 | (0.07 | ) | — | — | (0.07 | ) | 10.84 | |||||||||||||||||||||||||||
Class R3 (10/04) |
| |||||||||||||||||||||||||||||||||||||
2016(f) | 10.85 | (0.06 | ) | (0.21 | ) | (0.27 | ) | — | — | — | — | 10.58 | ||||||||||||||||||||||||||
2015 | 11.21 | (0.11 | ) | (0.16 | ) | (0.27 | ) | (0.05 | ) | — | (0.04 | ) | (0.09 | ) | 10.85 | |||||||||||||||||||||||
2014 | 11.05 | 0.29 | 0.14 | 0.43 | (0.07 | ) | (0.20 | ) | — | (0.27 | ) | 11.21 | ||||||||||||||||||||||||||
2013 | 11.74 | 0.04 | (0.62 | ) | (0.58 | ) | (0.11 | ) | — | — | (0.11 | ) | 11.05 | |||||||||||||||||||||||||
2012 | 10.84 | 0.22 | 0.97 | 1.19 | (0.29 | ) | — | — | (0.29 | ) | 11.74 | |||||||||||||||||||||||||||
2011 | 10.31 | 0.11 | 0.54 | 0.65 | (0.12 | ) | — | — | (0.12 | ) | 10.84 | |||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||
2016(f) | 11.02 | 0.02 | (0.26 | ) | (0.24 | ) | — | — | — | — | 10.78 | |||||||||||||||||||||||||||
2015(e) | 11.18 | — | * | (0.16 | ) | (0.16 | ) | — | — | — | * | — | 11.02 | |||||||||||||||||||||||||
Class I (10/04) |
| |||||||||||||||||||||||||||||||||||||
2016(f) | 11.02 | 0.01 | (0.26 | ) | (0.25 | ) | — | — | — | — | 10.77 | |||||||||||||||||||||||||||
2015 | 11.35 | (0.01 | ) | (0.19 | ) | (0.20 | ) | (0.09 | ) | — | (0.04 | ) | (0.13 | ) | 11.02 | |||||||||||||||||||||||
2014 | 11.14 | 0.19 | 0.33 | 0.52 | (0.11 | ) | (0.20 | ) | — | (0.31 | ) | 11.35 | ||||||||||||||||||||||||||
2013 | 11.81 | 0.09 | (0.61 | ) | (0.52 | ) | (0.15 | ) | — | — | (0.15 | ) | 11.14 | |||||||||||||||||||||||||
2012 | 10.96 | 0.25 | 1.01 | 1.26 | (0.41 | ) | — | — | (0.41 | ) | 11.81 | |||||||||||||||||||||||||||
2011 | 10.34 | 0.40 | 0.38 | 0.78 | (0.16 | ) | — | — | (0.16 | ) | 10.96 |
92 | 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) | ||||||||||||||||||||||||
(2.38 | )% | $ | 59,671 | 0.94 | %** | (0.42 | )%** | 0.83 | %** | (0.31 | )%** | 13 | % | |||||||||||||||||
(2.04 | ) | 42,341 | 0.92 | (0.38 | ) | 0.83 | (0.29 | ) | 34 | |||||||||||||||||||||
4.35 | 24,020 | 0.86 | 1.30 | 0.83 | 1.33 | 48 | ||||||||||||||||||||||||
(5.07 | ) | 21,949 | 0.81 | 0.56 | 0.81 | 0.56 | 52 | |||||||||||||||||||||||
11.44 | 19,330 | 1.00 | 1.81 | 0.84 | 1.97 | 47 | ||||||||||||||||||||||||
7.30 | 12,080 | 1.09 | 3.05 | 0.85 | 3.30 | 45 | ||||||||||||||||||||||||
(2.77 | ) | 12,168 | 1.69 | ** | (1.25 | )** | 1.58 | ** | (1.14 | )** | 13 | |||||||||||||||||||
(2.75 | ) | 9,366 | 1.66 | (1.06 | ) | 1.58 | (0.98 | ) | 34 | |||||||||||||||||||||
3.76 | 6,954 | 1.61 | 0.50 | 1.58 | 0.52 | 48 | ||||||||||||||||||||||||
(5.39 | ) | 9,761 | 1.56 | (0.25 | ) | 1.56 | (0.25 | ) | 52 | |||||||||||||||||||||
10.62 | 9,703 | 1.75 | 1.05 | 1.59 | 1.21 | 47 | ||||||||||||||||||||||||
6.59 | 8,043 | 1.84 | 2.19 | 1.60 | 2.44 | 45 | ||||||||||||||||||||||||
(2.49 | ) | 9,821 | 1.20 | ** | (1.23 | )** | 1.08 | ** | (1.12 | )** | 13 | |||||||||||||||||||
(2.38 | ) | 3,693 | 1.15 | (1.05 | ) | 1.08 | (0.98 | ) | 34 | |||||||||||||||||||||
3.97 | 3,447 | 1.13 | 2.63 | 1.08 | 2.68 | 48 | ||||||||||||||||||||||||
(5.02 | ) | 519 | 1.06 | 0.32 | 1.06 | 0.32 | 52 | |||||||||||||||||||||||
11.10 | 173 | 1.25 | 1.72 | 1.09 | 1.88 | 47 | ||||||||||||||||||||||||
6.31 | 33 | 1.38 | 0.78 | 1.10 | 1.05 | 45 | ||||||||||||||||||||||||
(2.18 | ) | 2,970 | 0.51 | ** | 0.20 | ** | 0.39 | ** | 0.31 | ** | 13 | |||||||||||||||||||
(1.39 | ) | 3,074 | 0.52 | ** | (0.12 | )** | 0.41 | ** | (0.01 | )** | 34 | |||||||||||||||||||
(2.27 | ) | 313,295 | 0.69 | ** | 0.02 | ** | 0.58 | ** | 0.13 | ** | 13 | |||||||||||||||||||
(1.78 | ) | 331,707 | 0.66 | (0.13 | ) | 0.58 | (0.05 | ) | 34 | |||||||||||||||||||||
4.82 | 321,472 | 0.61 | 1.65 | 0.58 | 1.68 | 48 | ||||||||||||||||||||||||
(4.46 | ) | 344,204 | 0.56 | 0.77 | 0.56 | 0.77 | 52 | |||||||||||||||||||||||
11.62 | 321,386 | 0.75 | 1.99 | 0.59 | 2.15 | 47 | ||||||||||||||||||||||||
7.62 | 255,183 | 0.84 | 3.49 | 0.60 | 3.74 | 45 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | For the six months ended December 31, 2015. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 93 |
Financial Highlights (Unaudited) (continued)
Intermediate Government Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||
Class A (10/02) |
| |||||||||||||||||||||||||||||||||||||
2016(e) | $ | 8.80 | $ | 0.05 | $ | (0.04 | ) | $ | 0.01 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | 8.76 | |||||||||||||||||
2015 | 8.81 | 0.10 | (0.02 | ) | 0.08 | (0.09 | ) | — | — | (0.09 | ) | 8.80 | ||||||||||||||||||||||||||
2014 | 8.79 | 0.11 | 0.03 | 0.14 | (0.11 | ) | — | (0.01 | ) | (0.12 | ) | 8.81 | ||||||||||||||||||||||||||
2013 | 9.02 | 0.14 | (0.20 | ) | (0.06 | ) | (0.17 | ) | — | — | (0.17 | ) | 8.79 | |||||||||||||||||||||||||
2012 | 8.84 | 0.18 | 0.19 | 0.37 | (0.19 | ) | — | — | (0.19 | ) | 9.02 | |||||||||||||||||||||||||||
2011 | 8.77 | 0.20 | 0.07 | 0.27 | (0.20 | ) | — | — | (0.20 | ) | 8.84 | |||||||||||||||||||||||||||
Class C (10/09) |
| |||||||||||||||||||||||||||||||||||||
2016(e) | 8.82 | 0.02 | (0.05 | ) | (0.03 | ) | (0.02 | ) | — | — | (0.02 | ) | 8.77 | |||||||||||||||||||||||||
2015 | 8.83 | 0.04 | (0.02 | ) | 0.02 | (0.03 | ) | — | — | (0.03 | ) | 8.82 | ||||||||||||||||||||||||||
2014 | 8.80 | 0.05 | 0.04 | 0.09 | (0.05 | ) | — | (0.01 | ) | (0.06 | ) | 8.83 | ||||||||||||||||||||||||||
2013 | 9.03 | 0.07 | (0.21 | ) | (0.14 | ) | (0.09 | ) | — | — | (0.09 | ) | 8.80 | |||||||||||||||||||||||||
2012 | 8.85 | 0.10 | 0.20 | 0.30 | (0.12 | ) | — | — | (0.12 | ) | 9.03 | |||||||||||||||||||||||||||
2011 | 8.77 | 0.12 | 0.08 | 0.20 | (0.12 | ) | — | — | (0.12 | ) | 8.85 | |||||||||||||||||||||||||||
Class R3 (10/09) |
| |||||||||||||||||||||||||||||||||||||
2016(e) | 8.80 | 0.05 | (0.04 | ) | 0.01 | (0.05 | ) | — | — | (0.05 | ) | 8.76 | ||||||||||||||||||||||||||
2015 | 8.81 | 0.08 | (0.02 | ) | 0.06 | (0.07 | ) | — | — | (0.07 | ) | 8.80 | ||||||||||||||||||||||||||
2014 | 8.78 | 0.09 | 0.04 | 0.13 | (0.09 | ) | — | (0.01 | ) | (0.10 | ) | 8.81 | ||||||||||||||||||||||||||
2013 | 9.01 | 0.12 | (0.21 | ) | (0.09 | ) | (0.14 | ) | — | — | (0.14 | ) | 8.78 | |||||||||||||||||||||||||
2012 | 8.84 | 0.15 | 0.18 | 0.33 | (0.16 | ) | — | — | (0.16 | ) | 9.01 | |||||||||||||||||||||||||||
2011 | 8.77 | 0.16 | 0.08 | 0.24 | (0.17 | ) | — | — | (0.17 | ) | 8.84 | |||||||||||||||||||||||||||
Class I (10/02) |
| |||||||||||||||||||||||||||||||||||||
2016(e) | 8.81 | 0.07 | (0.04 | ) | 0.03 | (0.08 | ) | — | — | (0.08 | ) | 8.76 | ||||||||||||||||||||||||||
2015 | 8.82 | 0.12 | (0.01 | ) | 0.11 | (0.12 | ) | — | — | (0.12 | ) | 8.81 | ||||||||||||||||||||||||||
2014 | 8.80 | 0.13 | 0.04 | 0.17 | (0.14 | ) | — | (0.01 | ) | (0.15 | ) | 8.82 | ||||||||||||||||||||||||||
2013 | 9.03 | 0.16 | (0.21 | ) | (0.05 | ) | (0.18 | ) | — | — | (0.18 | ) | 8.80 | |||||||||||||||||||||||||
2012 | 8.84 | 0.19 | 0.21 | 0.40 | (0.21 | ) | — | — | (0.21 | ) | 9.03 | |||||||||||||||||||||||||||
2011 | 8.77 | 0.21 | 0.07 | 0.28 | (0.21 | ) | — | — | (0.21 | ) | 8.84 |
94 | 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) | ||||||||||||||||||||||||
0.16 | % | $ | 11,456 | 1.00 | %* | 1.09 | %* | 0.85 | %* | 1.24 | %* | 29 | % | |||||||||||||||||
0.93 | 9,010 | 1.02 | 1.00 | 0.85 | 1.17 | 59 | ||||||||||||||||||||||||
1.65 | 9,621 | 1.01 | 1.14 | 0.85 | 1.30 | 31 | ||||||||||||||||||||||||
(0.74 | ) | 11,034 | 1.01 | 1.41 | 0.85 | 1.57 | 55 | |||||||||||||||||||||||
4.24 | 12,735 | 1.11 | 1.65 | 0.77 | 1.99 | 72 | ||||||||||||||||||||||||
3.10 | 14,086 | 1.10 | 1.85 | 0.73 | 2.22 | 58 | ||||||||||||||||||||||||
(0.33 | ) | 1,116 | 1.76 | * | 0.37 | * | 1.60 | * | 0.52 | * | 29 | |||||||||||||||||||
0.18 | 667 | 1.77 | 0.25 | 1.60 | 0.42 | 59 | ||||||||||||||||||||||||
0.98 | 639 | 1.76 | 0.40 | 1.60 | 0.56 | 31 | ||||||||||||||||||||||||
(1.53 | ) | 1,090 | 1.76 | 0.66 | 1.60 | 0.82 | 55 | |||||||||||||||||||||||
3.35 | 1,438 | 1.86 | 0.90 | 1.60 | 1.16 | 72 | ||||||||||||||||||||||||
2.32 | 1,417 | 1.89 | 1.05 | 1.58 | 1.37 | 58 | ||||||||||||||||||||||||
0.02 | 55 | 1.26 | * | 0.86 | * | 1.10 | * | 1.02 | * | 29 | ||||||||||||||||||||
0.66 | 137 | 1.27 | 0.75 | 1.10 | 0.92 | 59 | ||||||||||||||||||||||||
1.49 | 137 | 1.26 | 0.89 | 1.10 | 1.05 | 31 | ||||||||||||||||||||||||
(1.00 | ) | 168 | 1.26 | 1.17 | 1.10 | 1.32 | 55 | |||||||||||||||||||||||
3.79 | 214 | 1.36 | 1.39 | 1.10 | 1.66 | 72 | ||||||||||||||||||||||||
2.75 | 473 | 1.39 | 1.56 | 1.08 | 1.87 | 58 | ||||||||||||||||||||||||
0.18 | 58,040 | 0.76 | * | 1.34 | * | 0.60 | * | 1.50 | * | 29 | ||||||||||||||||||||
1.20 | 65,850 | 0.77 | 1.24 | 0.60 | 1.40 | 59 | ||||||||||||||||||||||||
1.90 | 86,186 | 0.76 | 1.36 | 0.60 | 1.52 | 31 | ||||||||||||||||||||||||
(0.53 | ) | 52,291 | 0.76 | 1.67 | 0.60 | 1.83 | 55 | |||||||||||||||||||||||
4.50 | 70,060 | 0.86 | 1.90 | 0.60 | 2.16 | 72 | ||||||||||||||||||||||||
3.25 | 98,960 | 0.89 | 2.05 | 0.58 | 2.36 | 58 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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. |
(e) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 95 |
Financial Highlights (Unaudited) (continued)
Short Term Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (12/92) |
| |||||||||||||||||||||||||||||||||
2016(g) | $ | 9.93 | $ | 0.08 | $ | (0.11 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 9.81 | ||||||||||||||
2015 | 10.05 | 0.16 | (0.13 | ) | 0.03 | (0.15 | ) | — | (0.15 | ) | 9.93 | |||||||||||||||||||||||
2014 | 9.97 | 0.19 | 0.08 | 0.27 | (0.19 | ) | — | (0.19 | ) | 10.05 | ||||||||||||||||||||||||
2013 | 9.95 | 0.20 | 0.03 | 0.23 | (0.21 | ) | — | (0.21 | ) | 9.97 | ||||||||||||||||||||||||
2012 | 10.06 | 0.24 | (0.10 | ) | 0.14 | (0.25 | ) | — | (0.25 | ) | 9.95 | |||||||||||||||||||||||
2011 | 9.98 | 0.24 | 0.06 | 0.30 | (0.22 | ) | — | (0.22 | ) | 10.06 | ||||||||||||||||||||||||
Class C (10/09) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.97 | 0.04 | (0.13 | ) | (0.09 | ) | (0.04 | ) | — | (0.04 | ) | 9.84 | ||||||||||||||||||||||
2015 | 10.08 | 0.08 | (0.12 | ) | (0.04 | ) | (0.07 | ) | — | (0.07 | ) | 9.97 | ||||||||||||||||||||||
2014 | 10.00 | 0.11 | 0.08 | 0.19 | (0.11 | ) | — | (0.11 | ) | 10.08 | ||||||||||||||||||||||||
2013 | 9.97 | 0.12 | 0.04 | 0.16 | (0.13 | ) | — | (0.13 | ) | 10.00 | ||||||||||||||||||||||||
2012 | 10.09 | 0.16 | (0.11 | ) | 0.05 | (0.17 | ) | — | (0.17 | ) | 9.97 | |||||||||||||||||||||||
2011 | 10.00 | 0.15 | 0.07 | 0.22 | (0.13 | ) | — | (0.13 | ) | 10.09 | ||||||||||||||||||||||||
Class R3 (9/11) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.95 | 0.07 | (0.13 | ) | (0.06 | ) | (0.07 | ) | — | (0.07 | ) | 9.82 | ||||||||||||||||||||||
2015 | 10.07 | 0.13 | (0.13 | ) | 0.00 | (0.12 | ) | — | (0.12 | ) | 9.95 | |||||||||||||||||||||||
2014 | 9.99 | 0.16 | 0.08 | 0.24 | (0.16 | ) | — | (0.16 | ) | 10.07 | ||||||||||||||||||||||||
2013 | 9.96 | 0.17 | 0.04 | 0.21 | (0.18 | ) | — | (0.18 | ) | 9.99 | ||||||||||||||||||||||||
2012(e) | 9.85 | 0.16 | 0.13 | 0.29 | (0.18 | ) | — | (0.18 | ) | 9.96 | ||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.95 | 0.09 | (0.12 | ) | (0.03 | ) | (0.09 | ) | — | (0.09 | ) | 9.83 | ||||||||||||||||||||||
2015(f) | 9.93 | 0.09 | — | * | 0.09 | (0.07 | ) | — | (0.07 | ) | 9.95 | |||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||
2016(g) | 9.94 | 0.09 | (0.11 | ) | (0.02 | ) | (0.10 | ) | — | (0.10 | ) | 9.82 | ||||||||||||||||||||||
2015 | 10.06 | 0.18 | (0.12 | ) | 0.06 | (0.18 | ) | — | (0.18 | ) | 9.94 | |||||||||||||||||||||||
2014 | 9.98 | 0.21 | 0.08 | 0.29 | (0.21 | ) | — | (0.21 | ) | 10.06 | ||||||||||||||||||||||||
2013 | 9.95 | 0.22 | 0.04 | 0.26 | (0.23 | ) | — | (0.23 | ) | 9.98 | ||||||||||||||||||||||||
2012 | 10.07 | 0.26 | (0.11 | ) | 0.15 | (0.27 | ) | — | (0.27 | ) | 9.95 | |||||||||||||||||||||||
2011 | 9.99 | 0.25 | 0.06 | 0.31 | (0.23 | ) | — | (0.23 | ) | 10.07 |
96 | 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) | ||||||||||||||||||||||||
(0.47 | )% | $ | 95,316 | 0.76 | %** | 1.58 | %** | 0.72 | %** | 1.62 | %** | 20 | % | |||||||||||||||||
0.32 | 100,544 | 0.73 | 1.56 | 0.71 | 1.58 | 43 | ||||||||||||||||||||||||
2.69 | 116,365 | 0.73 | 1.84 | 0.71 | 1.86 | 43 | ||||||||||||||||||||||||
2.30 | 141,099 | 0.73 | 1.96 | 0.71 | 1.99 | 42 | ||||||||||||||||||||||||
1.42 | 112,851 | 0.82 | 2.33 | 0.73 | 2.42 | 56 | ||||||||||||||||||||||||
3.00 | 80,927 | 0.87 | 2.22 | 0.73 | 2.37 | 58 | ||||||||||||||||||||||||
(0.95 | ) | 33,268 | 1.51 | ** | 0.84 | ** | 1.47 | ** | 0.88 | ** | 20 | |||||||||||||||||||
(0.36 | ) | 33,547 | 1.48 | 0.81 | 1.46 | 0.83 | 43 | |||||||||||||||||||||||
1.89 | 39,347 | 1.48 | 1.11 | 1.46 | 1.13 | 43 | ||||||||||||||||||||||||
1.61 | 44,414 | 1.48 | 1.22 | 1.46 | 1.24 | 42 | ||||||||||||||||||||||||
0.50 | 42,346 | 1.56 | 1.56 | 1.55 | 1.57 | 56 | ||||||||||||||||||||||||
2.22 | 5,101 | 1.66 | 1.45 | 1.58 | 1.53 | 58 | ||||||||||||||||||||||||
(0.72 | ) | 480 | 1.01 | ** | 1.34 | ** | 0.97 | ** | 1.38 | ** | 20 | |||||||||||||||||||
0.02 | 131 | 0.98 | 1.29 | 0.96 | 1.31 | 43 | ||||||||||||||||||||||||
2.38 | 1,049 | 0.98 | 1.59 | 0.96 | 1.61 | 43 | ||||||||||||||||||||||||
2.10 | 516 | 0.98 | 1.71 | 0.96 | 1.73 | 42 | ||||||||||||||||||||||||
2.92 | 446 | 1.06 | ** | 2.07 | ** | 1.05 | ** | 2.07 | ** | 56 | ||||||||||||||||||||
(0.34 | ) | 67,561 | 0.47 | ** | 1.88 | ** | 0.43 | ** | 1.92 | ** | 20 | |||||||||||||||||||
0.96 | 27,475 | 0.46 | ** | 1.95 | ** | 0.43 | ** | 1.98 | ** | 43 | ||||||||||||||||||||
(0.34 | ) | 444,823 | 0.51 | ** | 1.83 | ** | 0.47 | ** | 1.87 | ** | 20 | |||||||||||||||||||
0.57 | 529,027 | 0.48 | 1.80 | 0.46 | 1.82 | 43 | ||||||||||||||||||||||||
2.93 | 915,119 | 0.48 | 2.09 | 0.46 | 2.11 | 43 | ||||||||||||||||||||||||
2.65 | 720,722 | 0.48 | 2.22 | 0.46 | 2.23 | 42 | ||||||||||||||||||||||||
1.51 | 727,242 | 0.57 | 2.59 | 0.55 | 2.61 | 56 | ||||||||||||||||||||||||
3.16 | 741,969 | 0.67 | 2.43 | 0.58 | 2.52 | 58 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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. |
(e) | For the period September 23, 2011 (commencement of operations) through June 30, 2012. |
(f) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(g) | For the six months ended December 31, 2015. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 97 |
Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
General Information
Trust and Fund 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 Core Bond Fund (“Core Bond”), Nuveen Core Plus Bond Fund (“Core Plus Bond”), Nuveen Inflation Protected Securities Fund (“Inflation Protected Securities”), Nuveen Intermediate Government Bond Fund (“Intermediate Government Bond”) and Nuveen Short Term Bond Fund (“Short Term Bond”) (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.
The end of the reporting period for the Funds is December 31, 2015, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2015 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Investment Objectives and Principal Investment Strategies
Core Bond
Core Bond’s investment objective is to provide investors with current income to the extent consistent with preservation of capital. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in bonds, such as U.S. government securities (securities issued or guaranteed by the U.S. government or its agencies or instrumentalities), including zero coupon securities, residential and commercial mortgage-backed securities, asset-backed securities, corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations and municipal securities in an amount not to exceed 20% of the Fund’s net assets. Bonds in the Fund will be rated investment grade at the time of purchase or, if unrated, determined to be of comparable quality by the Sub-Adviser. At least 65% of the Fund’s debt securities must be either U.S. government securities or securities that are rated A or better or are unrated and of comparable quality as determined by the Sub-adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so. Unrated securities will not exceed 25% of the Fund’s total assets.
The Fund may invest up to 25% of its total assets in U.S. dollar denominated debt obligations of foreign corporations and governments.
Under normal market conditions, the Fund attempts to maintain a weighted average effective maturity for its portfolio securities of three to ten years and an average effective duration of two to six years. The Fund’s weighted average effective maturity and effective duration are measures of how the value of the Fund’s shares may react to interest rate changes.
To generate additional income, the Fund may invest up to 25% of its total assets in dollar roll transactions. In a dollar roll transaction, the Fund sells mortgage-backed securities for delivery in the current month while contracting with the same party to repurchase similar securities at a future date.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts, interest rate caps, collars, and floors; swap agreements, including swap agreements on interest rates, security indexes and specific securities and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities and non-standardized derivatives contracts traded in the over-the-counter (“OTC”) market. The Fund may use these derivatives in an attempt to manage market risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
Core Plus Bond
Core Plus Bond’s investment objective is to provide investors with high current income consistent with limited risk to capital. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in bonds, such as U.S. government securities (securities issued or guaranteed by the U.S. government or its agencies or instrumentalities), including zero coupon securities, residential and commercial mortgage-backed securities, asset-backed securities, corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations and municipal securities in an amount not to exceed 20% of the Fund’s net assets.
98 | Nuveen Investments |
Up to 20% of the Fund’s total assets may be invested in securities rated lower than investment grade or unrated securities of comparable quality as determined by the Sub-Adviser (securities commonly referred to as “high yield” securities or “junk” bonds). The Fund will not invest in securities rated lower than CCC at the time of purchase or in unrated securities of comparable quality as determined by the Sub-Adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so. Unrated securities will not exceed 25% of the Fund’s total assets.
The Fund may invest up to 35% of its total assets in debt obligations of foreign corporations and foreign governments. However, no more than 10% of the Fund’s total assets may be invested in debt obligations of corporations and governments that are located in emerging market countries. A country is considered to have an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies, and the potential for rapid economic growth, provided that no issuer included in the Fund’s current benchmark index will be considered to be located in an emerging market country.
Up to 10% of the Fund’s total assets may have non-U.S. dollar currency exposure from non-U.S. dollar denominated securities and currency derivatives, calculated on an absolute notional basis (i.e., adding together the absolute value of net long and net short exposures to individual non-U.S. dollar currencies).
Under normal market conditions, the Fund attempts to maintain a weighted average effective maturity for its portfolio securities of fifteen years or less and an average effective duration of three to eight years. The Fund’s weighted average effective maturity and average effective duration are measures of how the value of the Fund’s shares may react to interest rate changes.
To generate additional income, the Fund may invest up to 25% of its total assets in dollar roll transactions. In a dollar roll transaction, the Fund sells mortgage-backed securities for delivery in the current month while contracting with the same party to repurchase similar securities at a future date.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; interest rate caps, collars, and floors; foreign currency contracts; options on foreign currencies; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The Fund may also use derivatives to gain exposure to non-dollar denominated securities markets to the extent it does not do so through direct investments. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
Inflation Protected Securities
Inflation Protected Securities’ investment objective is to provide investors with total return while providing protection against inflation. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in inflation protected debt securities. These securities will be issued by the U.S. and non-U.S. governments, their agencies and instrumentalities, and domestic and foreign corporations. The Fund’s investments in U.S. government inflation protected securities will include U.S. Treasury inflation protected securities as well as inflation protected securities issued by agencies and instrumentalities of the U.S. government. Securities issued by the U.S. Treasury are backed by the full faith and credit of the U.S. government. Some securities issued by agencies and instrumentalities of the U.S. government are supported only by the credit of the issuing agency or instrumentality.
Inflation protected debt securities are designed to provide protection against the negative effects of inflation. Unlike traditional debt securities, which pay regular fixed interest payments on a fixed principal amount, interest payments on inflation protected debt securities will vary with the rate of inflation. The U.S. Treasury uses the Consumer Price Index for Urban Consumers (CPI-U) as the inflation measure. Inflation protected debt securities issued by foreign governments and corporations are generally linked to a non-U.S. inflation rate.
Inflation protected debt securities have two common structures. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of the bond. If the index measuring the rate of inflation rises, the principal value of the security will increase. Because interest payments will be calculated with respect to a larger principal amount, interest payments also will increase. Conversely, if the index measuring the rate of inflation falls, the principal value of the security will fall and interest payments will decrease. Other issuers adjust the interest rates payable on the security according to the rate of inflation, but the principal amount remains the same.
In the event of sustained deflation, the U.S. Treasury has guaranteed that it will repay at maturity at least the original face value of the inflation protected securities that it issues. Other inflation protected debt securities that accrue inflation into their principal value may or may not provide a similar guarantee. For securities that do not provide such a guarantee, the adjusted principal value of the security repaid at maturity may be less than the original principal value.
Up to 20% of the Fund’s assets may be invested in holdings that are not inflation protected, which may include domestic and foreign corporate debt obligations, securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, debt obligations of foreign governments, residential and commercial mortgage-backed securities, asset-backed securities and derivative instruments, as discussed below.
Nuveen Investments | 99 |
Notes to Financial Statements (Unaudited) (continued)
Up to 10% of the Fund’s net assets may be invested in securities that are rated lower than investment grade at the time of purchase or that are unrated and of comparable quality (securities commonly referred to as “high-yield” securities or “junk” bonds). The Fund will not invest in securities rated lower than B at the time of purchase or in unrated securities of comparable quality as determined by the Sub-Adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so.
The Fund may invest up to 20% of its net assets in non-U.S. dollar denominated securities, and may invest without limitation in U.S. dollar denominated securities of foreign corporations and governments.
The Fund may invest in debt securities of any maturity, but expects to maintain, under normal market conditions, a weighted average effective maturity of between eight and fifteen years and an average effective duration of between four and ten years. The Fund’s weighted average effective maturity and average effective duration are measures of how the Fund may react to interest rate changes.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; foreign currency contracts; options on foreign currencies; interest rate caps, collars, and floors; index- and other asset-linked notes; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The Fund may also use derivatives to gain exposure to non-dollar denominated securities markets to the extent it does not do so through direct investments. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
Intermediate Government Bond
Intermediate Government Bond’s investment objective is to provide investors with current income to the extent consistent with the preservation of capital. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in U.S. government bonds. U.S. government bonds are securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, including U.S. Treasury obligations, mortgage-backed securities issued by the Government National Mortgage Association, the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC) and non-mortgage-related obligations issued or guaranteed by U.S. government agencies or instrumentalities, such as FNMA, FHLMC, Federal Farm Credit Banks, the Federal Home Loan Bank System, and the Tennessee Valley Authority, including obligations that are issued by private issuers and guaranteed under the Federal Deposit Insurance Corporation (FDIC) Temporary Liquidity Guarantee Program.
U.S. Treasury obligations and some obligations of U.S. government agencies and instrumentalities are supported by the full faith and credit of the U.S. government. Other U.S. government securities are backed by the right of the issuer to borrow from the U.S. Treasury. Still others are supported only by the credit of the issuing agency or instrumentality.
The Fund may invest up to 20% of its total assets, collectively, in non-U.S. government debt obligations, asset-backed securities, residential and commercial mortgage-backed securities, corporate debt obligations, and municipal securities. Such securities will be rated investment grade at the time of purchase or, if unrated, determined to be of comparable quality by the Sub-Adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so.
Under normal market conditions, the Fund attempts to maintain a weighted average effective maturity between three and ten years and an effective duration of between two and one-half and seven years. The Fund’s weighted average effective maturity and effective duration are measures of how the value of the Fund’s shares may react to interest rate changes.
To generate additional income, the Fund may invest up to 10% of its total assets in dollar roll transactions. In a dollar roll transaction, the Fund sells mortgage-backed securities for delivery in the current month while contracting with the same party to repurchase similar securities at a future date.
The Fund may utilize the following derivatives: futures contracts; options on futures contracts, swap agreements, including swap agreements on interest rates, security indexes and specific securities and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts that are traded on domestic securities exchanges, boards of trade, or similar entities and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio, or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use derivatives to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
Short Term Bond
Short Term Bond’s investment objective is to provide investors with current income while maintaining a high degree of principal stability. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in bonds, such
100 | Nuveen Investments |
as U.S. government securities, which are securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, residential and commercial mortgage-backed securities, asset-backed securities, corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations, and municipal securities.
Up to 20% of the Fund’s total assets may be invested in securities rated lower than investment grade or unrated securities of comparable quality as determined by the Sub-Adviser (securities commonly referred to as “high yield” securities or “junk” bonds). The Fund will not invest in securities rated lower than CCC at the time of purchase or in unrated securities of comparable quality as determined by the Sub-Adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so. Unrated securities will not exceed 5% of the Fund’s total assets.
The Fund may invest up to 35% of its total assets in debt obligations of foreign corporations and foreign governments. However, no more than 10% of the Fund’s total assets may be invested in debt obligations of corporations and governments that are located in emerging market countries. A country is considered to have an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies, and the potential for rapid economic growth, provided that no issuer included in the Fund’s current benchmark index will be considered to be located in an emerging market country.
Up to 10% of the Fund’s total assets may have non-U.S. dollar currency exposure from non-U.S. dollar denominated securities and currency derivatives, calculated on an absolute notional basis (i.e., adding together the absolute value of net long and net short exposures to individual non-U.S. dollar currencies).
Under normal market conditions, the Fund attempts to maintain a weighted average effective maturity and an average effective duration for its portfolio securities of one to three years. The Fund’s weighted average effective maturity and effective duration are measures of how the value of the Fund’s shares may react to interest rate changes.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; interest rate caps, collars, and floors; foreign currency contracts; options on foreign currencies; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The Fund may also use derivatives to gain exposure to non-dollar denominated securities markets to the extent it does not do so through direct investments. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the following Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
Core Bond | Core Plus Bond | |||||||
Outstanding when-issued/delayed delivery purchase commitments | $ | 6,295,201 | $ | 22,374,930 |
Nuveen Investments | 101 |
Notes to Financial Statements (Unaudited) (continued)
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. Interest income also reflects pay down gains and losses, if any. 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. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared daily and distributed to shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the transfer agent.
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.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of the Funds, with the exception of Short Term Bond, of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge. Class A Share purchases of Short Term Bond of $250,000 or more are sold at NAV without an up-front sales charge. Class A Share purchases may be subject to a contingent deferred sales charge (“CDSC”) if redeemed within eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% 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 0.25% annual 12b-1 distribution fee and a 0.25% 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 settled shares 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 service fees.
Sub-transfer agent fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net assets.
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.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.
The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
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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
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market 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). |
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. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued 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 NAVs on the valuation date and are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors (the “Board”). The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Prices of forward foreign currency exchange contracts and swap contracts are also provided by a pricing service approved by the Board using the same methods as described above and are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange is closed and an investor is not able to purchase, redeem or exchange shares. 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’ NAV is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Board. 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 Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S.
Nuveen Investments | 103 |
Notes to Financial Statements (Unaudited) (continued)
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 Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
Core Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 84,128,083 | $ | — | $ | 84,128,083 | ||||||||
$1,000 Par (or similar) Institutional Preferred | — | 674,275 | — | 674,275 | ||||||||||||
Municipal Bonds | — | 1,545,627 | — | 1,545,627 | ||||||||||||
U.S. Government and Agency Obligations | — | 19,883,950 | — | 19,883,950 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 79,270,924 | — | 79,270,924 | ||||||||||||
Sovereign Debt | — | 1,454,600 | — | 1,454,600 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 8,950,753 | — | — | 8,950,753 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 12,208,240 | — | — | 12,208,240 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 107,568 | — | — | 107,568 | ||||||||||||
Total | $ | 21,266,561 | $ | 186,957,459 | $ | — | $ | 208,224,020 | ||||||||
Core Plus Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 272,008,179 | $ | — | $ | 272,008,179 | ||||||||
$1,000 Par (or similar) Institutional Preferred | — | 21,204,252 | — | 21,204,252 | ||||||||||||
U.S. Government and Agency Obligations | — | 64,854 | — | 64,854 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 125,085,384 | — | 125,085,384 | ||||||||||||
Sovereign Debt | — | 11,858,640 | — | 11,858,640 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 40,469,109 | — | — | 40,469,109 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 24,964,422 | — | — | 24,964,422 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts** | — | 404,557 | — | 404,557 | ||||||||||||
Interest Rate Swaps** | — | (1,196,854 | ) | — | (1,196,854 | ) | ||||||||||
Futures Contracts** | 156,084 | — | — | 156,084 | ||||||||||||
Total | $ | 65,589,615 | $ | 429,429,012 | $ | — | $ | 495,018,627 | ||||||||
Inflation Protected Securities | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Convertible Preferred Securities | $ | 218,654 | $ | — | $ | — | $ | 218,654 | ||||||||
$25 Par (or similar) Retail Preferred | 293,250 | — | — | 293,250 | ||||||||||||
Corporate Bonds | — | 23,222,893 | — | 23,222,893 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 141,000 | — | 141,000 | ||||||||||||
Municipal Bonds | — | 2,070,099 | — | 2,070,099 | ||||||||||||
U.S. Government and Agency Obligations | — | 350,786,383 | — | 350,786,383 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 13,967,884 | — | 13,967,884 | ||||||||||||
Sovereign Debt | — | 2,246,086 | — | 2,246,086 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 3,513,550 | — | — | 3,513,550 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 2,580,386 | — | — | 2,580,386 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 162,300 | — | — | 162,300 | ||||||||||||
Total | $ | 6,768,140 | $ | 392,434,345 | $ | — | $ | 399,202,485 |
* | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
104 | Nuveen Investments |
Intermediate Government Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 399,213 | $ | — | $ | 399,213 | ||||||||
Municipal Bonds | — | 2,170,759 | — | 2,170,759 | ||||||||||||
U.S. Government and Agency Obligations | — | 43,525,886 | — | 43,525,886 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 22,413,812 | — | 22,413,812 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 3,362,425 | — | — | 3,362,425 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 1,359,290 | — | — | 1,359,290 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 23,354 | — | — | 23,354 | ||||||||||||
Total | $ | 4,745,069 | $ | 68,509,670 | $ | — | $ | 73,254,739 | ||||||||
Short Term Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 288,562,094 | $ | — | $ | 288,562,094 | ||||||||
$1,000 Par (or similar) Institutional Preferred | — | 3,268,500 | — | 3,268,500 | ||||||||||||
Municipal Bonds | — | 13,229,662 | — | 13,229,662 | ||||||||||||
U.S. Government and Agency Obligations | — | 34,943,597 | — | 34,943,597 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 284,608,348 | — | 284,608,348 | ||||||||||||
Sovereign Debt | — | 2,905,190 | — | 2,905,190 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 21,320,187 | — | — | 21,320,187 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 10,997,768 | — | — | 10,997,768 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts** | — | 31,146 | — | 31,146 | ||||||||||||
Futures Contracts** | 94,258 | — | — | 94,258 | ||||||||||||
Total | $ | 32,412,213 | $ | 627,548,537 | $ | — | $ | 659,960,750 |
* | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
Nuveen Investments | 105 |
Notes to Financial Statements (Unaudited) (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 (i) foreign currency, (ii) investments, (iii) investments in derivatives and (iv) other assets and liabilities 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 (i) investments and (ii) other assets and liabilities 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 investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Inflation-Indexed Bonds
Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recognized as a component of “Interest income” on the Statement of Operations, even though investors do not receive their principal until maturity.
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. When loaning securities, the Funds retain the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Funds’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Funds securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Funds has the right to use the collateral to acquire identical securities. In the event the Funds are delayed or prevented from exercising their right to dispose of the collateral, there may be a loss to the Funds. Under each Fund’s securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its investment by the Fund. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association, serves as its securities lending agent. Each Fund pays the custodian a fee based on its proportional share of the custodian’s expense of operating its securities lending program. Income earned from the securities lending program is paid to the Fund, net of any fees paid. Income from securities lending, net of fees paid, is recognized as “Securities lending income, net” on the Statement of Operations.
106 | Nuveen Investments |
The following table presents the securities out on loan for the Funds and the collateral delivered related to those securities, as of the end of the reporting period.
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
Core Bond | ||||||||||||||
Corporate Bonds | $ | 7,866,315 | $ | (7,866,315 | ) | $ | — | |||||||
U.S. Government and Agency Obligations | 779,725 | (779,725 | ) | — | ||||||||||
Total | $ | 8,646,040 | $ | (8,646,040 | ) | $ | — | |||||||
Core Plus Bond | ||||||||||||||
Corporate Bonds | $30,254,639 | $ | (30,254,639 | ) | $ | — | ||||||||
$1,000 par (or similar) Institutional Preferred | 3,795,908 | (3,795,908 | ) | — | ||||||||||
Sovereign Debt | 4,921,936 | (4,921,936 | ) | — | ||||||||||
Total | $ | 38,972,483 | $ | (38,972,483 | ) | $ | — | |||||||
Inflation Protected Securities | ||||||||||||||
Corporate Bonds | $ | 3,376,638 | $ | (3,376,638 | ) | $ | — | |||||||
Intermediate Government Bond | ||||||||||||||
U.S. Government and Agency Obligations | $ | 3,246,704 | $ | (3,246,704 | ) | $ | — | |||||||
Short Term Bond | ||||||||||||||
Corporate Bonds | $ | 17,345,977 | $ | (17,345,977 | ) | $ | — | |||||||
U.S. Government and Agency Obligations | 3,290,463 | (3,290,463 | ) | — | ||||||||||
Total | $ | 20,636,440 | $ | (20,636,440 | ) | $ | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund's Portfolio of Investments for details on the securities out on loan. |
Securities lending fees paid by each Fund during the current fiscal period were as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Securities lending fees paid | $ | 1,909 | $ | 14,613 | $ | 1,593 | $ | 222 | $ | 6,425 |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
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.
Forward Foreign Currency Exchange Contracts
Each Fund is authorized to enter into forward foreign currency exchange contracts (“forward contracts”) under two circumstances: (i) when a Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency to “lock in” the U.S. exchange rate of the transaction, with such period being a short-dated contract covering the period between transaction date and settlement date; or (ii) when the Sub-Adviser believes that the currency of a particular foreign country may experience a substantial movement against the U.S. dollar or against another foreign currency.
A forward contract is an agreement between two parties to purchase or sell a specified quantity of a currency at or before a specified date in the future at a specified price. Forward contracts are typically traded in the OTC markets and all details of the contract are negotiated between the counterparties to the agreement. Accordingly, the forward contracts are valued by reference to the contracts traded in the OTC markets. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying currency, establishing an opposite position in the contract and recognizing the profit or loss on both positions simultaneously on the delivery date or, in some instances, paying a cash settlement before the designated date of delivery.
Forward contracts are valued daily at the forward rate. The net amount recorded on these transactions for each counterparty is recognized as a component of “Unrealized appreciation and/or depreciation on forward foreign currency exchange contracts (, net)” on the Statement of Assets and Liabilities. The change in value of the forward contracts during the reporting period is recognized as a component of “Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts” on the Statement of Operations. When the contract is closed or offset with the same counterparty, a Fund recognizes the difference between the value of the contract at the time it was entered and the value at the time it was
Nuveen Investments | 107 |
Notes to Financial Statements (Unaudited) (continued)
closed or offset as a component of “Net realized gain (loss) from forward foreign currency exchange contracts” on the Statement of Operations.
Forward contracts will generally not be entered into for terms greater than three months, but may have maturities of up to six months or more. The use of forward contracts does not eliminate fluctuations in the underlying prices of a Fund’s investment securities; however, it does establish a rate of exchange that can be achieved in the future. The use of forward contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reflected on the Statement of Assets and Liabilities. Forward contracts are subject to counterparty risk if the counterparty fails to perform as specified in the contract due to financial impairment or other reason.
During the current fiscal period, Core Plus Bond and Short Term Bond invested in forward foreign currency exchange contracts to manage foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from its bond portfolio, or it may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation.
The average notional amount of forward foreign currency exchange contracts outstanding during the current fiscal period was as follows:
Core Plus Bond | Short Term Bond | |||||||
Average notional amount of forward foreign currency exchange contracts outstanding* | $ | 33,807,706 | $ | 981,138 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of forward foreign currency exchange contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Plus Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts | $ | 404,557 | — | $ | — | |||||||
Short Term Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts | $ | 31,146 | — | $ | — |
The following table presents the forward foreign currency exchange contracts subject to netting agreements and the collateral delivered related to those forward foreign currency exchange contracts as of the end of the reporting period.
Fund | Counterparty | Gross Unrealized Appreciation on Forward Foreign Currency Exchange Contracts* | Gross Unrealized (Depreciation) on Forward Foreign Currency Exchange Contracts* | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Forward Foreign Currency Exchange Contracts | Collateral Pledged to (from) Counterparty | Net Exposure | |||||||||||||||||||
Core Plus Bond | ||||||||||||||||||||||||||
Bank of America, N.A. | $ | 48,589 | $ | — | $ | — | $ | 48,589 | $ | — | $ | 48,589 | ||||||||||||||
Goldman Sachs Bank USA | 25,990 | — | — | 25,990 | — | 25,990 | ||||||||||||||||||||
Nomura International PLC | 329,978 | — | — | 329,978 | — | 329,978 | ||||||||||||||||||||
Total | $ | 404,557 | $ | — | $ | — | $ | 404,557 | $ | — | $ | 404,557 | ||||||||||||||
Short Term Bond | ||||||||||||||||||||||||||
Bank of America, N.A. | $ | 31,146 | $ | — | $ | — | $ | 31,146 | $ | — | $ | 31,146 |
* | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on forward foreign currency exchange contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Forward Foreign Currency Exchange Contracts | Change in Net Unrealized Appreciation (Depreciation) of Forward Foreign Currency Exchange Contracts | ||||||||
Core Plus Bond | Foreign currency exchange rate | Forward contracts | $ | 2,429,570 | $ | 160,895 | ||||||
Short Term Bond | Foreign currency exchange rate | Forward contracts | 32,749 | 31,146 |
108 | 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 “Cash collateral at brokers” 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 Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the 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 or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, each Fund used U.S. Treasury futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure.
The average notional amount of futures contracts outstanding during current fiscal period was as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Average notional amount of futures contracts outstanding* | $ | 38,020,227 | $ | 62,896,777 | $ | 71,690,609 | $ | 11,084,602 | $ | 95,904,035 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Bond | ||||||||||||||
Interest rate | Futures contracts | — | $ | — | Payable for variation margin on futures contracts* | $ | 110,713 | |||||||
Receivable for variation margin on futures contracts* | (3,111 | ) | Payable for variation margin on futures contracts* | (34 | ) | |||||||||
Total | $ | (3,111 | ) | $ | 110,679 | |||||||||
Core Plus Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 20,704 | Payable for variation margin on futures contracts* | $ | 135,380 | |||||||
Inflation Protected Securities | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 9,366 | Payable for variation margin on futures contracts* | $ | 152,934 | |||||||
Intermediate Government Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | (8,015 | ) | Payable for variation margin on futures contracts* | $ | 31,369 | ||||||
Short Term Bond | ||||||||||||||
Interest rate | Futures contracts | — | $ | — | Payable for variation margin on futures contracts* | $ | 94,258 |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported on the Fund’s Portfolio of Investments and not the asset and/or liability derivatives location as described in the table above. |
Nuveen Investments | 109 |
Notes to Financial Statements (Unaudited) (continued)
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | ||||||||
Core Bond | Interest rate | Futures contracts | $ | (544,406 | ) | $ | 350,017 | |||||
Core Plus Bond | Interest rate | Futures contracts | (690,724 | ) | 65,354 | |||||||
Inflation Protected Securities | Interest rate | Futures contracts | (212,332 | ) | 235,187 | |||||||
Intermediate Government Bond | Interest rate | Futures contracts | (108,161 | ) | 23,126 | |||||||
Short Term Bond | Interest rate | Futures contracts | 77,731 | 294,243 |
Interest Rate Swap Contracts
Interest rate swap contracts involve a Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap contract. Swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that the Fund is to receive.
Interest rate swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), a Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. For OTC swaps, the net amount recorded on these transactions, for each counterparty, is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on interest rate swaps (, net).”
Upon the execution of an exchanged-cleared swap contract, in certain instances 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 swap contracts, if any, is recognized as a component of “Cash collateral at brokers” on the Statement of Assets and Liabilities. Investments in exchange-cleared interest rate swap contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the swap contract. If a Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on swap contracts” on the Statement of Assets and Liabilities.
The net amount of periodic payments settled in cash are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contracts are treated as ordinary income or expense, respectively.
Changes in the value of the swap contracts during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps.” In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as “Interest rate swaps premiums paid and/or received” on the Statement of Assets and Liabilities.
During the current fiscal period, each Fund invested in interest rate swap contracts as part of an overall portfolio construction strategy to manage duration and overall portfolio yield curve exposure.
The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Average notional amount of interest rate swap contracts outstanding* | $ | 7,333,333 | $ | 51,333,333 | $ | 9,000,000 | $ | 1,333,333 | $ | 22,000,000 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
110 | Nuveen Investments |
The following table presents the fair value of all swap contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Plus Bond | ||||||||||||||
Interest rate | Swaps (Exchange-Cleared) | Receivable for variation margin on swap contracts* | $ | (1,009,753 | ) | — | $ | — | ||||||
Interest rate | Swaps (OTC) | — | — | Unrealized depreciation on interest rate swaps | (187,101 | ) | ||||||||
Total | $ | (1,009,753 | ) | $ | (187,101 | ) |
* | Value represents unrealized appreciation (depreciation) of swaps as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivative location as described in the table above. |
The following table presents the swap contracts subject to netting agreements and the collateral delivered related to those swap contracts as of the end of the reporting period.
Fund | Counterparty | Gross Unrealized Appreciation on Interest Rate Swaps*** | Gross Unrealized (Depreciation) on Interest Rate Swaps*** | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Interest Rate Swaps | Collateral Pledged to (from) Counter party | Net Exposure | |||||||||||||||||||
Core Plus Bond | JPMorgan Chase Bank, N.A. | $ | — | | $ | (187,101 | ) | $ | — | | $ | (187,101 | ) | $ | 187,101 | | $ | — | |
*** | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Swaps | Change in Net Unrealized Appreciation (Depreciation) of Swaps | ||||||||
Core Bond | Interest rate | Swaps | $ | (558,892 | ) | $ | 157,115 | |||||
Core Plus Bond | Interest rate | Swaps | $ | (2,047,029 | ) | $ | 27,864 | |||||
Inflation Protected Securities | Interest rate | Swaps | $ | (583,194 | ) | $ | 80,776 | |||||
Intermediate Government Bond | Interest rate | Swaps | $ | (66,161 | ) | $ | (10,105 | ) | ||||
Short Term Bond | Interest rate | Swaps | $ | (1,482,338 | ) | $ | 258,316 |
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.
Nuveen Investments | 111 |
Notes to Financial Statements (Unaudited) (continued)
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Core Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 150,669 | $ | 1,485,582 | 480,983 | $ | 4,953,915 | ||||||||||
Class C | 27,519 | 270,898 | 96,329 | 982,982 | ||||||||||||
Class R6 | 1,574,168 | 15,600,000 | 4,651,952 | 47,541,741 | ||||||||||||
Class I | 1,124,436 | 11,025,898 | 3,159,449 | 32,214,618 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 26,131 | 256,973 | 58,925 | 602,146 | ||||||||||||
Class C | 1,195 | 11,690 | 2,063 | 20,945 | ||||||||||||
Class R6 | 84,983 | 838,133 | 51,608 | 521,428 | ||||||||||||
Class I | 83,705 | 819,298 | 470,639 | 4,799,991 | ||||||||||||
3,072,806 | 30,308,472 | 8,971,948 | 91,637,766 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (198,118 | ) | (1,955,557 | ) | (524,861 | ) | (5,370,931 | ) | ||||||||
Class C | (4,873 | ) | (48,164 | ) | (50,490 | ) | (511,743 | ) | ||||||||
Class R6 | (489,488 | ) | (4,835,000 | ) | (159,742 | ) | (1,625,000 | ) | ||||||||
Class I | (6,214,317 | ) | (61,277,835 | ) | (17,818,315 | ) | (182,116,417 | ) | ||||||||
(6,906,796 | ) | (68,116,556 | ) | (18,553,408 | ) | (189,624,091 | ) | |||||||||
Net increase (decrease) | (3,833,990 | ) | $ | (37,808,084 | ) | (9,581,460 | ) | $ | (97,986,325 | ) | ||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Core Plus Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 285,613 | $ | 3,138,266 | 1,431,910 | $ | 16,573,234 | ||||||||||
Class C | 147,895 | 1,611,516 | 443,728 | 5,107,553 | ||||||||||||
Class R3 | 888,577 | 9,831,939 | 339,863 | 3,921,356 | ||||||||||||
Class R6 | — | — | 3,988,552 | 45,789,116 | ||||||||||||
Class I | 1,482,052 | 16,285,937 | 8,121,755 | 93,636,474 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 124,661 | 1,363,700 | 221,063 | 2,551,674 | ||||||||||||
Class C | 9,173 | 99,800 | 13,935 | 159,971 | ||||||||||||
Class R3 | 15,863 | 173,312 | 6,838 | 78,938 | ||||||||||||
Class R6 | 53,825 | 589,931 | 61,527 | 703,660 | ||||||||||||
Class I | 290,881 | 3,176,804 | 638,558 | 7,363,664 | ||||||||||||
3,298,540 | 36,271,205 | 15,267,729 | 175,885,640 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (648,202 | ) | (7,125,773 | ) | (1,282,745 | ) | (14,765,373 | ) | ||||||||
Class C | (141,146 | ) | (1,561,030 | ) | (349,732 | ) | (3,968,520 | ) | ||||||||
Class R3 | (117,565 | ) | (1,291,759 | ) | (68,508 | ) | (785,186 | ) | ||||||||
Class R6 | (1,569,659 | ) | (17,564,000 | ) | (162,188 | ) | (1,865,000 | ) | ||||||||
Class I | (10,638,052 | ) | (116,555,104 | ) | (13,432,022 | ) | (154,528,972 | ) | ||||||||
(13,114,624 | ) | (144,097,666 | ) | (15,295,195 | ) | (175,913,051 | ) | |||||||||
Net increase (decrease) | (9,816,084 | ) | $ | (107,826,461 | ) | (27,466 | ) | $ | (27,411 | ) |
112 | Nuveen Investments |
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Inflation Protected Securities | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,542,213 | $ | 27,417,384 | 2,506,090 | $ | 27,662,729 | ||||||||||
Class C | 545,973 | 5,865,586 | 397,128 | 4,332,157 | ||||||||||||
Class R3 | 732,221 | 7,870,025 | 298,987 | 3,263,207 | ||||||||||||
Class R6 | 16,409 | 178,955 | 298,908 | 3,338,897 | ||||||||||||
Class I | 5,107,851 | 55,741,374 | 9,520,020 | 106,097,936 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 22,083 | 245,094 | ||||||||||||
Class C | — | — | 2,409 | 26,612 | ||||||||||||
Class R3 | — | — | 2,564 | 28,322 | ||||||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | — | — | 59,165 | 661,822 | ||||||||||||
8,944,667 | 97,073,324 | 13,107,354 | 145,656,776 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (821,828 | ) | (8,873,564 | ) | (785,062 | ) | (8,679,440 | ) | ||||||||
Class C | (255,769 | ) | (2,740,124 | ) | (155,985 | ) | (1,721,376 | ) | ||||||||
Class R3 | (144,305 | ) | (1,541,992 | ) | (268,797 | ) | (2,971,314 | ) | ||||||||
Class R6 | (19,873 | ) | (216,709 | ) | (20,018 | ) | (225,016 | ) | ||||||||
Class I | (6,119,273 | ) | (66,546,972 | ) | (7,807,405 | ) | (86,933,536 | ) | ||||||||
(7,361,048 | ) | (79,919,361 | ) | (9,037,267 | ) | (100,530,682 | ) | |||||||||
Net increase (decrease) | 1,583,619 | $ | 17,153,963 | 4,070,087 | $ | 45,126,094 | ||||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Intermediate Government Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 467,473 | $ | 4,123,608 | 301,596 | $ | 2,674,606 | ||||||||||
Class C | 60,457 | 534,243 | 25,473 | 225,799 | ||||||||||||
Class R3 | 1,063 | 9,353 | 3,672 | 32,381 | ||||||||||||
Class I | 756,877 | 6,661,125 | 3,567,119 | 31,596,680 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 7,133 | 62,775 | 10,037 | 88,789 | ||||||||||||
Class C | 203 | 1,784 | 218 | 1,929 | ||||||||||||
Class R3 | 61 | 542 | 119 | 1,057 | ||||||||||||
Class I | 12,387 | 109,110 | 11,379 | 100,789 | ||||||||||||
1,305,654 | 11,502,540 | 3,919,613 | 34,722,030 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (189,831 | ) | (1,673,358 | ) | (379,903 | ) | (3,366,166 | ) | ||||||||
Class C | (9,043 | ) | (79,593 | ) | (22,419 | ) | (198,363 | ) | ||||||||
Class R3 | (10,368 | ) | (91,064 | ) | (3,860 | ) | (34,054 | ) | ||||||||
Class I | (1,619,909 | ) | (14,286,932 | ) | (5,874,316 | ) | (52,018,923 | ) | ||||||||
(1,829,151 | ) | (16,130,947 | ) | (6,280,498 | ) | (55,617,506 | ) | |||||||||
Net increase (decrease) | (523,497 | ) | $ | (4,628,407 | ) | (2,360,885 | ) | $ | (20,895,476 | ) |
Nuveen Investments | 113 |
Notes to Financial Statements (Unaudited) (continued)
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Short Term Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,917,058 | $ | 18,927,587 | 4,107,721 | $ | 40,925,341 | ||||||||||
Class C | 722,029 | 7,145,331 | 1,003,522 | 10,034,994 | ||||||||||||
Class R3 | 36,851 | 363,814 | 15,685 | 156,648 | ||||||||||||
Class R6 | 4,356,773 | 43,113,066 | 3,194,996 | 31,730,928 | ||||||||||||
Class I | 6,617,856 | 65,477,434 | 22,741,538 | 226,838,893 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 66,247 | 653,658 | 145,594 | 1,450,839 | ||||||||||||
Class C | 8,340 | 82,563 | 19,118 | 191,160 | ||||||||||||
Class R3 | 3 | 28 | 9 | 91 | ||||||||||||
Class R6 | 30,868 | 304,933 | 17,912 | 178,439 | ||||||||||||
Class I | 106,956 | 1,056,022 | 282,764 | 2,820,170 | ||||||||||||
13,862,981 | 137,124,436 | 31,528,859 | 314,327,503 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,386,136 | ) | (23,547,228 | ) | (5,710,885 | ) | (56,917,931 | ) | ||||||||
Class C | (716,134 | ) | (7,094,278 | ) | (1,560,336 | ) | (15,591,244 | ) | ||||||||
Class R3 | (1,101 | ) | (10,928 | ) | (106,775 | ) | (1,067,252 | ) | ||||||||
Class R6 | (273,710 | ) | (2,702,508 | ) | (451,080 | ) | (4,490,000 | ) | ||||||||
Class I | (14,620,211 | ) | (144,403,153 | ) | (60,814,967 | ) | (605,795,536 | ) | ||||||||
(17,997,292 | ) | (177,758,095 | ) | (68,644,043 | ) | (683,861,963 | ) | |||||||||
Net increase (decrease) | (4,134,311 | ) | $ | (40,633,659 | ) | (37,115,184 | ) | $ | (369,534,460 | ) |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions) during the current fiscal period were as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Purchases: | ||||||||||||||||||||
Investment securities | $ | 31,203,141 | $ | 64,315,291 | $ | 3,934,893 | $ | 1,363,116 | $ | 104,545,527 | ||||||||||
U.S. Government and agency obligations | 39,579,139 | 68,153,086 | 76,004,728 | 18,660,614 | 34,079,175 | |||||||||||||||
Sales and maturities: | ||||||||||||||||||||
Investment securities | 56,793,668 | 155,852,394 | 18,512,941 | 9,744,436 | 118,773,151 | |||||||||||||||
U.S. Government and agency obligations | 44,987,149 | 73,472,396 | 33,236,688 | 12,309,249 | 13,977,344 |
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 NAVs of the Funds.
As of December 31, 2015, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Cost of investments | $ | 207,868,335 | $ | 503,115,637 | $ | 407,067,412 | $ | 72,174,874 | $ | 664,807,565 | ||||||||||
Gross unrealized: | ||||||||||||||||||||
Appreciation | $ | 3,652,387 | $ | 14,918,422 | $ | 4,530,684 | $ | 1,263,618 | $ | 2,332,626 | ||||||||||
Depreciation | (3,404,270 | ) | (22,379,219 | ) | (12,557,911 | ) | (207,107 | ) | (7,304,845 | ) | ||||||||||
Net unrealized appreciation (depreciation) of investments | $ | 248,117 | $ | (7,460,797 | ) | $ | (8,027,227 | ) | $ | 1,056,511 | $ | (4,972,219 | ) |
114 | Nuveen Investments |
Permanent differences, primarily due to distribution reallocations, expiration of capital loss carryforwards, federal taxes paid, foreign currency transactions, return of capital distributions, treatment of notional principal contracts, amortization of mark-to-market assets on Sec. 311(e) adjustments and deflation adjustments sold reclass resulted in reclassifications among the Funds’ components of net assets as of June 30, 2015, the Funds’ last tax year end, as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Capital paid-in | $ | (20 | ) | $ | (22 | ) | $ | (1,423,877 | ) | $ | (2,446,558 | ) | $ | (7,824,109 | ) | |||||
Undistributed (Over-distribution of) net investment income | (124,923 | ) | 82,081 | 1,477,274 | — | (418,938 | ) | |||||||||||||
Accumulated net realized gain (loss) | 124,943 | (82,059 | ) | (53,397 | ) | 2,446,558 | 8,243,047 |
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2015, the Funds’ last tax year end, were as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Undistributed net ordinary income1 | $ | 625,622 | $ | 2,483,544 | $ | — | $ | 59,307 | $ | 21,293 | ||||||||||
Undistributed net long-term capital gains | 705,744 | 801,663 | — | — | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared during the period June 1, 2015 through June 30, 2015 and paid on July 1, 2015. Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended June 30, 2015, was designated for purposes of the dividends paid deduction as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Distributions from net ordinary income2 | $ | 9,599,976 | $ | 23,402,734 | $ | 2,853,684 | $ | 1,114,389 | $ | 17,072,409 | ||||||||||
Distributions from net long-term capital gains | 4,146,887 | 884,605 | 128,584 | — | — | |||||||||||||||
Return of capital | — | — | 1,423,856 | — | — |
2 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
As of June 30, 2015, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
Intermediate Government Bond | Short Term Bond | |||||||
Expiration: | ||||||||
June 30, 2016 | $ | 164,695 | $ | 48,855 | ||||
June 30, 2017 | 3,538,398 | 1,188,199 | ||||||
June 30, 2018 | — | 4,103,631 | ||||||
Not subject to expiration | 128,396 | 3,967,046 | ||||||
Total | $ | 3,831,489 | $ | 9,307,731 |
During the Funds’ last tax year ended June 30, 2015, the following Funds utilized capital loss carryforwards as follows:
Inflation Protected Securities | Intermediate Government Bond | |||||||||||
Utilized capital loss carryforwards | $ | 21,234 | $ | 190,432 |
As of June 30, 2015, the Funds’ last tax year end, the following Funds’ capital loss carryforwards expired as follows:
Intermediate Bond | Short Term Bond | |||||||||||
Expired capital loss carryforwards | $ | 2,446,535 | $ | 7,432,482 |
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Funds have elected to defer losses as follows:
Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||
Post-October capital losses3 | $ | 599,478 | $ | 44,831 | $ | — | ||||||||
Late-year ordinary losses4 | 9,309 | — | 692,591 |
3 | Capital losses incurred from November 1, 2014 through June 30, 2015, the Funds’ last tax year end. |
4 | Ordinary losses incurred from January 1, 2015 through June 30, 2015 and/or specified losses incurred from November 1, 2014 through June 30, 2015. |
Nuveen Investments | 115 |
Notes to Financial Statements (Unaudited) (continued)
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, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Net Assets | Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | |||||||||||||||
For the first $125 million | 0.2700 | % | 0.2800 | % | 0.2500 | % | 0.2700 | % | 0.2200 | % | ||||||||||
For the next $125 million | 0.2575 | 0.2675 | 0.2375 | 0.2575 | 0.2075 | |||||||||||||||
For the next $250 million | 0.2450 | 0.2550 | 0.2250 | 0.2450 | 0.1950 | |||||||||||||||
For the next $500 million | 0.2325 | 0.2425 | 0.2125 | 0.2325 | 0.1825 | |||||||||||||||
For the next $1 billion | 0.2200 | 0.2300 | 0.2000 | 0.2200 | 0.1700 | |||||||||||||||
For net assets over $2 billion | 0.1950 | 0.2050 | 0.1750 | 0.1950 | 0.1450 |
The annual complex-level fee, payable monthly, for each Fund 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 | 0.2000 | % | ||
$56 billion | 0.1996 | |||
$57 billion | 0.1989 | |||
$60 billion | 0.1961 | |||
$63 billion | 0.1931 | |||
$66 billion | 0.1900 | |||
$71 billion | 0.1851 | |||
$76 billion | 0.1806 | |||
$80 billion | 0.1773 | |||
$91 billion | 0.1691 | |||
$125 billion | 0.1599 | |||
$200 billion | 0.1505 | |||
$250 billion | 0.1469 | |||
$300 billion | 0.1445 |
* | 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 December 31, 2015, the complex-level fee rate for each Fund was as follows: |
Fund | Complex-Level Fee Rate | |||
Core Bond | 0.2000 | % | ||
Core Plus Bond | 0.2000 | |||
Inflation Protected Securities | 0.1803 | |||
Intermediate Government Bond | 0.2000 | |||
Short Term Bond | 0.2000 |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of each Fund so that the total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees occurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
Fund | Expense Cap | Temporary Expense Cap Expiration Date | ||||||||
Core Bond | 0.53 | % | October 31, 2016 | |||||||
Core Plus Bond | 0.52 | October 31, 2016 | ||||||||
Inflation Protected Securities | 0.60 | October 31, 2016 | ||||||||
Intermediate Government Bond | 0.60 | October 31, 2016 | ||||||||
Short Term Bond | 0.47 | October 31, 2016 |
116 | Nuveen Investments |
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 has adopted a deferred compensation plan for independent directors that enable directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
During the current fiscal period, 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:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Sales charges collected | $ | 8,468 | $ | 22,351 | $ | 8,059 | $ | 7,286 | $ | 56,482 | ||||||||||
Paid to financial intermediaries | 6,840 | 19,392 | 6,935 | 6,543 | 54,927 |
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 current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
Commission advances | $ | 720 | $ | 9,704 | $ | 5,193 | $ | 4,624 | $ | 58,449 |
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 were retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
12b-1 fees retained | $ | 1,955 | $ | 18,287 | $ | 5,275 | $ | 2,392 | $ | 17,728 |
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 current fiscal period, as follows:
Core Bond | Core Plus Bond | Inflation Protected Securities | Intermediate Government Bond | Short Term Bond | ||||||||||||||||
CDSC retained | $ | — | $ | 548 | $ | 1,641 | $ | — | $ | 6,306 |
8. Borrowing Arrangements
During the current fiscal period, the Funds, along with certain other funds managed by the Adviser (“Participating Funds”), established a 364-day, $2.53 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including all of the Funds covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 2016 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized this facility.
Nuveen Investments | 117 |
Fund Information
Fund Manager Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606
Sub-Adviser Nuveen Asset Management, LLC 333 West Wacker Drive Chicago, IL 60606 | Independent Registered PricewaterhouseCoopers LLP Chicago, IL 60606
Custodian U.S. Bank National Association Milwaukee, WI 53202 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Transfer Agent and Boston Financial Nuveen Investor Services P.O. Box 8530 Boston, MA 02266-8530 (800) 257-8787 |
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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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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
118 | Nuveen Investments |
Used in this Report
Asset-Backed Securities (ABS): Securities whose value and income payments are derived from and collateralized by a specific pool of underlying assets. The pool of assets typically is a group of small and/or illiquid assets that may be difficult to sell individually. The underlying pools of asset-backed securities often include payments from credit cards, auto loans or mortgage loans.
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Barclays U.S. Aggregate Bond Index: An unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage-backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays U.S. Corporate High Yield Bond Index: An index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Barclays Intermediate Government Bond Index: An unmanaged index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to 1 year and less than 10 years, are rated investment grade, and have $250 million or more of outstanding face value. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays U.S. TIPS Index: An unmanaged index that includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays 1-3 Year Government/Credit Bond Index: An unmanaged index that includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Commercial Mortgage-Backed Securities (CMBS): Commercial mortgage-backed securities are backed by cash flows of a mortgage or pool of mortgages on commercial real estate. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. CMBS are typically characterized by the following: i) loans on multi-family housing, non-residential property, ii) payments based on the amortization schedule of 25-30 years with a balloon payment due usually after 10 years, and iii) restrictions on prepayments.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Lipper Core Bond Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Core Bond Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Nuveen Investments | 119 |
Glossary of Terms Used in this Report (Unaudited) (continued)
Lipper Core Bond Plus Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Core Bond Plus Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Inflation-Protected Bond Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Inflation-Protected Bond Funds Classification. The Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charge.
Lipper Intermediate U.S. Government Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Intermediate U.S. Government 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 Short Investment Grade Debt Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Short Investment Grade Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Mortgage-Backed Securities (MBS): Mortgage-backed securities (MBS) are bonds backed by pools of mortgages, usually with similar characteristics, and which return principal and interest in each payment. MBS are composed of residential mortgages (RMBS) or commercial mortgages (CMBS). RMBS are further divided into agency RMBS and non-agency RMBS, depending on the issuer.
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.
Residential Mortgage-Backed Securities (RMBS): Residential mortgage-backed securities are securities the payments on which depend primarily on the cash flow from residential mortgage loans made to borrowers that are secured by residential real estate. RMBS consist of agency and non-agency RMBS. Agency RMBS have agency guarantees that assure investors that they will receive timely payment of interest and principal, regardless of delinquency or default rates on the underlying loans. Agency RMBS include securities issued by the Government National Mortgage Association, the
Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and other federal agencies, or issues guaranteed by them. Non-agency RMBS do not have agency guarantees. Non-agency RMBS have credit enhancement built into the structure to shield investors from borrower delinquencies. The spectrum of non-agency residential mortgage loans includes traditional jumbo loans (prime), alternative-A loans (Alt-A), and home equity loans (sub-prime).
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.
120 | Nuveen Investments |
Notes
Nuveen Investments | 121 |
Notes
122 | Nuveen Investments |
Notes
Nuveen Investments | 123 |
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Nuveen Investments: | ||||||||||||||
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 $225 billion as of December 31, 2015. | ||||||||||||||
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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 |
MSA-FINC-1215D 14133-INV-B-02/17
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Mutual Funds |
Nuveen Income Funds |
| Semi-Annual Report December 31, 2015 |
Share Class / Ticker Symbol | ||||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||||||||
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Nuveen Global Total Return Bond Fund | NGTAX | NGTCX | NGTRX | — | NGTIX | |||||||||||
Nuveen High Income Bond Fund | FJSIX | FCSIX | FANSX | — | FJSYX | |||||||||||
Nuveen Strategic Income Fund | FCDDX | FCBCX | FABSX | FSFRX | FCBYX | |||||||||||
Nuveen U.S. Infrastructure Bond Fund | NUSNX | NUSCX | — | — | NUSIX |
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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. | ||||||||||||
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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 |
to Shareholders
Dear Shareholders,
For better or for worse, the financial markets spent most of the past year waiting for the U.S. Federal Reserve (Fed) to end its accommodative monetary policy. The policy has propped up stock and bond markets since the Great Recession, but the question remains: how will markets behave without its influence? This uncertainty was a considerable source of volatility for stock and bond prices for much of 2015, despite the Fed carefully conveying its intention to raise rates slowly and only when the economy shows evidence of readiness.
As was widely expected, the long-awaited Fed rate hike materialized in mid-December. While the move was interpreted as a vote of confidence on the U.S. economy’s underlying strength, the Fed emphasized that future rate increases will be gradual and guided by its ongoing assessment of financial conditions. Headwinds including rising borrowing costs, softer commodity prices, low inflation, a strong U.S. dollar and a stagnant global economy could necessitate keeping monetary conditions accommodative for longer. Meanwhile, policy makers in Europe and Japan are deploying their available tools to try to bolster their economies’ fragile growth, while Chinese authorities have stepped up efforts to manage China’s slowdown.
Although the new year began with a more pessimistic tone to investor sentiment and elevated volatility in the markets, we caution investors from making long-term decisions based on short-term news. In times like these, you can look to a professional investment manager with the experience and discipline to maintain the proper perspective on short-term events. And if the daily headlines do concern you, I encourage you to reach out to your financial advisor. Your financial advisor can help you evaluate your investment strategies in light of current events, your time horizon and risk tolerance.
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
February 22, 2016
4 | Nuveen Investments |
Comments
Nuveen Global Total Return Bond Fund
Nuveen High Income Bond Fund
Nuveen Strategic Income Fund
Nuveen U.S. Infrastructure Bond Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments, Inc. In this report, the various portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended December 31, 2015. These management teams include:
Nuveen Global Total Return Bond Fund
Timothy A. Palmer, CFA, and Steven S. Lee, CFA, have managed the Fund since its inception in 2011.
Nuveen High Income Bond Fund
John T. Fruit, CFA, has managed the Fund since 2006. Jeffrey T. Schmitz, CFA, has been part of the management team for the Fund since 2008.
Nuveen Strategic Income Fund
Timothy A. Palmer, CFA, has been the lead manager of the Fund since 2005. Jeffrey J. Ebert has been on the management team since 2000. Marie A. Newcome, CFA, joined the Fund as a co-portfolio manager in 2011.
Nuveen U.S. Infrastructure Bond Fund
Daniel J. Close, CFA, Jeffrey J. Ebert and Jeffrey T. Schmitz, CFA, have managed the Fund since its inception in 2014.
High yield market overview for the six-month reporting period ended December 31, 2015.
High yield markets struggled during the reporting period, as continued declines in the value of fossil fuels and other commodities undermined the creditworthiness of issuers whose financial health depends on such values. Consequently, yield spreads (the degree to which the yield of a particular bond relative to a low-risk bond such as a U.S. Treasury) for high yield bonds, particularly those of issuers in the most impacted industries, widened considerably during the six-month reporting period and caused such bonds to decline significantly in value. The Barclays U.S. Aggregate Bond Index provided a 0.65% total return during this reporting period in contrast to the Barclays U.S. Corporate High Yield Bond Index, which returned -6.82% during the reporting period.
In early December, 2015, another sponsor’s mutual fund that was invested heavily in distressed credit bonds, was forced to suspend further share redemptions (withdrawals from the fund), reportedly because shareholder redemption requests were occurring faster than the fund was able to sell portfolio securities in a balanced manner to raise the cash necessary to pay those redeeming shareholders. This event, occurring at a time when the high yield bond market was already weak and generally declining, served to exacerbate the concerns of high yield bond market participants about both the ongoing strength and stability of the high yield bond
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
market, and specifically about the ability of high yield bond funds to sell portfolio bonds to meet redemptions going forward. The immediate result was for already unstable and declining high yield bond prices to decline further and faster and for net negative flows (net redemptions) for funds investing in high yield bonds to increase, which put further pressure on the high yield bond market. However, as investors learned more about the specific fund’s circumstance, and generally came to conclude that the event was driven primarily by that fund’s uniquely difficult circumstances, the market’s fears tended to subside. However, those market-wide concerns have not completely dissipated. As a result, net negative flows out of the high yield bond fund category are still significant, and high yield bond prices have not recovered through the time of this writing in mid-February, so the market skittishness following the event ended up hurting overall Fund performance, both during the reporting period and into the ensuing period.
How did the Funds perform during the six-month reporting period ended December 31, 2015?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Funds for the six-month, one-year, five-year, ten-year and/or since inception periods ended December 31, 2015. Each Funds’ Class A Share total returns at net asset value (NAV) are compared with the performance of the appropriate Barclays Index and Lipper classification average. A more detailed account of each Fund’s performance is provided later in this report.
What strategies were used to manage the Funds during the six-month reporting period and how did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics used previously, although implementation of those strategies depended on the individual characteristics of the portfolios, as well as market conditions. The Funds’ management teams use a highly collaborative, research-driven approach that we believe offers the best opportunity to achieve consistent, superior long-term performance on a risk-adjusted basis across the full range of market environments. During the reporting period, the Funds were generally positioned for an environment of continued moderate economic growth. Nonetheless, during the reporting period we made smaller scaled shifts on an ongoing basis that were geared toward improving each Fund’s profile in response to changing conditions and valuations. These strategic moves are discussed in more detail within each Fund’s section of this report.
Nuveen Global Total Return Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed the Barclays Global Aggregate Unhedged Bond Index and the Lipper Global Income Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy.
Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the final three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. In anticipation of the Fed move, the Treasury yield curve flattened as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened across all sectors as investors favored higher quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. In the investment grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower-quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative
6 | Nuveen Investments |
outlook changes for several issuers and exacerbating selling pressure in an already weak market. Merger and acquisition (M&A) related financing also took a toll on the technical backdrop as the market tried to absorb nearly $70 billion in M&A related issuance. Market technicals remained weak into the reporting period as dealers tried to keep inventory levels low and oil prices hit new lows. Given strong fundamentals, financials outperformed the industrial sector, which was weighed down by growth concerns. These worries also caused BBB rated issuers to significantly underperform A rated issuers. European credit, both investment grade and high yield, outperformed U.S. credit owing to marginally higher overall quality, less concentration in energy and the effects of supportive European Central Bank (ECB) policy on market technicals.
High yield bond prices came under extreme pressure as festering global growth concerns, the Fed’s mixed messages and accumulating sector specific issues weighed on confidence and led to a poor technical backdrop. A flight-to-quality ensued due to persistent commodity weakness and increased distress among lower rated issues. Energy bonds, which comprise approximately 13% of the market, continued to be pressured by falling crude prices. The weak global growth outlook also caused the headwinds in the commodity sector, with many base metal, iron ore and coal prices trading at multi-year lows. Elevated risks in the commodity sector curbed risk appetites and led to underperformance in the CCC rated credit space, which is more exposed to these cyclically weak areas. High yield spreads, which have been rising since mid-2014, ended the reporting period well above their historical average as a percentage of the 10-year Treasury yield, reflecting the extremely negative sentiment and investor outflows from the segment.
Non-U.S. interest rates and currencies took the Fed’s first move in stride, reacting moderately to prospects for a higher U.S. rate structure. A moderate message from the Fed, below trend global growth, the lack of inflation pressures and ongoing risk aversion in credit helped keep market rates in check. Europe and Japan, while posting reasonable growth data, continued to witness broadly disinflationary effects beyond energy, leading to meaningfully lower inflation expectations. After increased expectations earlier in the period, the ECB disappointed marginally by offering only an extension of its quantitative easing plan late in the year, but clearly left the door open for more. The Bank of Japan continued its waiting game in the midst of mixed economic data. China was an ongoing source of volatility after surprising the market with a currency devaluation in August. Most developed foreign markets marginally outperformed the U.S. and yield curves were flatter. While currencies were volatile during the period, the U.S. dollar generally appreciated versus most currencies. Emerging market (EM) currencies struggled with slow growth, declining commodity prices and reduced investor risk appetite. Developed currencies, such as the euro, fared better, but generally slipped on diverging monetary policies. The yen gained marginally amid global risk aversion and sluggish domestic activity.
A combination of sluggish global economic activity, low and volatile commodity prices and concerns about a Fed rate hike led to negative returns for EM debt. Mixed and decelerating data out of China continued to raise questions about the country’s growth and the resultant impact on the rest of the world. Political disarray, stagnant growth and currency weakness continued to plague Brazil, threatening further instability in this large EM player, while a surprise policy shift in South Africa exacerbated the volatility. In terms of regions, Latin America lagged, while Eastern Europe held in better given those countries’ proximity to the eurozone and better debt dynamics. Most local EM markets underperformed U.S. Treasuries. Nearly all EM currencies declined, with central Europe faring better and Brazil, Russia and South Africa among the worst performers due to global as well as domestic challenges.
The volatile market environment and pressures on credit and economically-sensitive sectors of the market drove the Fund’s shortfall versus the benchmark during the reporting period. The largest negative impact on performance was from the Fund’s weighting in the high yield corporate sector. In addition to the overweight to high yield, our positioning in cyclical credits, including energy, as well as EM corporates, contributed to underperformance.
While an overweight to investment grade credit detracted marginally, the primary performance impact in that sector was due to our lower quality bias/overweight BBB rated credits. Issue selection was also a negative contributor as the benefit from a large overweight to financials was offset by our smaller, but hard hit, positions in cyclical credits, including energy. An overweight to EM investment grade corporates, although scaled back early in the reporting period, was also a drag on performance.
Our overall global interest rate positioning detracted slightly given our small duration underweight to the index, which was largely expressed through our zero weight in Japanese bonds. Interest rate selection was mixed, with gains in core Europe, the U.S. and emerging Europe offset by losses from South Africa, Mexico and the underweight to Japan.
Nuveen Investments | 7 |
Portfolio Managers’ Comments (continued)
Overall, currency positioning benefited the Fund during the reporting period. The Fund’s significant overweight to the U.S. dollar was helpful as global growth concerns and the shift in rates by the Fed supported the dollar. We also benefited from select positions such as the Indonesian rupiah and Indian rupee, as well as our negative views on Canada and Turkey. A portion of this gain was offset by our positions in the Mexican peso and British pound, as well as our large underweight to the Japanese yen. We continue to believe the yen is in a longer-term depreciation trend, the U.S. dollar has cyclical support and select EM currencies may become attractive as the year develops.
The Fund continued to reflect our bias for moderate global growth, led by the U.S. Positioning has reflected our view that emerging markets will continue to face headwinds, but that improvements in European growth, combined with underlying strength in the U.S., will underpin credit sectors. We have been positioned for continued monetary support from the ECB and supportive financial conditions. As a result, the Fund’s positioning emphasizes an overweight to the U.S. dollar, a high degree of selectivity in interest rate markets, including favoring the eurozone, and a focus on sectors that we believe will benefit from our economic and market outlook. We continued to favor sector strategies for income generation driven primarily through diversified exposure to investment grade and high yield credit, in addition to other spread opportunities away from credit. Sector selection remained focused on these sectors, with activity focused on managing credit risks and opportunities at the issue selection level, based on our fundamental credit research and market conditions. Also, we continued to underweight mortgage-related and structured assets, although select positions in some segments of these sectors provide attractive income and liquidity benefits for the portfolio. We continued to allocate away from Treasury and agency securities as these offer unattractive duration/yield profiles.
The Fund’s market selection remained focused on markets where domestic fundamentals and valuations combined to offer what we believed to be good value. We increased positions in the eurozone, including Germany and peripheral markets such as Italy and Portugal, while remaining underweight in Spain. We reduced local bond positions in Mexico, Poland and South Africa based on valuations as well as macro and local fundamental developments. Overall interest rate positioning remained defensive, although less so as the reporting period progressed, owing to improved valuations and significant declines in inflationary pressures.
Our largest adjustment to currency exposures during the period was a reduction in the Fund’s underweight to the euro. Toward the end of the reporting period, the euro’s valuation had significantly factored in near-term developments, warranting less of an underweight. We also reduced exposure in Poland and moved to a market weight in Canada.
During the reporting period, we also continued to utilize various derivative instruments. We used foreign currency exchange contracts to gain exposure to selected foreign currencies, as well as in some cases to hedge the currency risk present in a foreign bond. The overall effect of the foreign currency exchange contracts was positive as the majority of the positions were used for hedging purposes during the reporting period as the U.S. dollar rallied.
We sold U.S. Treasury futures and Euro dollar futures as part of an overall portfolio construction strategy to manage portfolio duration and yield curve exposure and purchased selected foreign bond futures to actively manage exposure to those markets. The effect of these activities was negligible.
We used interest rate swaps as part of an overall portfolio interest rate strategy to manage duration and overall portfolio yield curve exposure. The swap contracts detracted from performance during the reporting period.
We used credit default swaps to take on credit risk and earn a commensurate credit spread. The Fund no longer held these swap contracts at period end. The effect of these swap positions on performance was negative during the reporting period.
Nuveen High Income Bond Fund
The Fund’s Class A Shares at NAV underperformed both the Barclays High Yield 2% Issuer Capped Index and the Lipper High Current Yield Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off
8 | Nuveen Investments |
sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy.
Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the final three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. In anticipation of the Fed move, the Treasury yield curve flattened during the reporting period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
High yield corporate bond prices were under extreme pressure during the reporting period as the risks of slower global growth, lower commodity prices and uncertainty regarding rate hikes triggered a massive flight to quality. The precipitous drop in oil prices, and the continued downtrend in oil and other commodities, had a calamitous effect on the prices of energy and commodity related debt as well as the broader high yield and emerging markets (EM), given their respective concentrations to energy and basic materials. Along with the plunging price declines in any securities even tangentially related to energy and mining came a dose of explosive volatility and heightened fear of impaired market liquidity. The sell-off in the high yield asset class during the period seemed to be a manifestation of all these factors, combined with fears over the eventual December Fed rate hike and presumed tax-loss selling, making for an environment of extreme risk aversion and widening credit spreads. Lower rated and less liquid issues within the high yield space were hit disproportionately hard as investors scrambled for safety, with the spread differential between BB and CCC rated debt morphing to levels not seen since the financial crisis of 2008.
Emerging markets remained under pressure due to strength in the U.S. dollar versus various EM currencies and, as mentioned, these markets’ disproportionate exposure to weakness in commodities. In September, S&P downgraded the sovereign rating of Brazil, Latin America’s largest EM issuer, ratings from BBB- to BB+ and followed with downgrades to many of the country’s corporate issuers. Volatility and outflows seen within EM debt spilled over to a degree to the U.S. high yield market, again stressing the technical aspects of the market. Despite many of the commodity headwinds and Brazil headlines, EM debt was fairly resilient and outperformed the U.S. high yield market as the market was anchored by supportive technical factors and a higher correlation to Treasuries. Looking across other global high yield markets, European high yield also fared better than the U.S. market, owing to its smaller exposure to the troubled areas of energy and basic materials and generally higher quality. The European banking and auto sectors, both large index constituents, represented relative safe havens from some of the stresses that were seen elsewhere.
Against this backdrop, the Fund’s exposures to cyclically challenged areas such as basic materials and energy caused much of its underperformance. While the Fund’s weights in both the energy and metals/mining sectors were close to that of the benchmark, we continued to see a relentless sell-off in higher risk (lower quality) names held in our portfolio. Similarly, exposures to smaller-sized issues, and therefore less liquid areas of the market, continued to see little in the way of sponsorship from the market, hampering relative returns for a number of our holdings. Because of the fears surrounding the Fed tightening cycle, investors chose to hold a greater percentage of liquid bonds due to what the market views as a growing redemption risk. While that was a rational behavioral response, it created a uniquely large liquidity premium between large benchmark issues and smaller-sized issues. In many cases, we sold and realized losses in some of the money-losing positions, and moved to increase the overall quality of the energy portfolio in particular. However, de-risking proved very challenging, especially and most notably within the energy space as liquidity all but dried up.
The growing risk aversion and concurrent underperformance of CCC rated bonds also hurt the Fund’s relative performance over the course of the period. Stylistically, our Fund has long sacrificed some degree of market liquidity and maintained a lower average quality as a byproduct of our bottom-up, value-oriented approach to security selection, which sometimes manifests itself in investments in smaller, less-followed credits, and by extension, less liquid holdings. Simply put, our lower quality bias did not serve the Fund well during the reporting period.
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Portfolio Managers’ Comments (continued)
While the weakness in China renewed global growth concerns, the fundamental outlook for the U.S. remained robust as shown by more recent macro data. To that end, we saw domestic cyclicals, areas such as transportation, airlines and homebuilders, perform much better than globally exposed cyclicals such as chemicals, mining and technology. Therefore, the Fund benefited from overweights in building materials, diversified manufacturing and transportation, sectors that played into our U.S. centric cyclical theme.
At the end of the reporting period, we carried a roughly 11% allocation to the energy sector, in line with the benchmark weighting. Of note, however, the Fund’s exposure to the riskier sectors of exploration and production (E&P) and oilfield services was 7.5%, with the remainder in the midstream (pipeline) and refining sectors that have mostly sidestepped the large price declines. Of the 11% allocation to energy, approximately 2% was from CCC rated issuers, with the remainder rated B or above. While continued weakness in energy is certainly a risk, the risk/reward proposition looks compelling to us and justifies retaining modest exposure to the sector. We aim to be very selective in the bonds we wish to hold for the longer term, again focusing on credits we feel reasonably certain can muddle through the current downturn and yet offer significant yields.
Turning to the other troubled sector of metals and mining, we ended the reporting period with a roughly 4.5% exposure, also in line with the benchmark weighting. However, exposure to a few coal-related credits and some smaller, less liquid issues suffered larger mark-to-market losses and caused some underperformance within the sector. The Fund’s remaining exposure within the metals and mining sector is well diversified among producers of coal/iron ore, aluminum/steel, precious metals and base metals. Despite the very weak performance seen by these areas during both the six-month reporting period and the full year of 2015, we believe the material downside from current levels is not a large risk, in part due to the already depressed prices. Along with energy, the mining sector has been among the worst yearly performers, both down by more than 23% during 2015.
The Fund continued to hold a roughly 9% overweight to the CCC rating category at the end of the reporting period, however that should be viewed as temporary in nature due to various fund flows near year-end. We carried closer to a 4-5% overweight during much of the reporting period and aim to reduce this further in the near future. We also carried a small overweight to the B rating category versus the Barclays High Yield 2% Issuer Capped Index. Despite the overall weakness seen in the lower rated parts of the market, we still view this as less of an indictment on the underlying credit quality and overwhelmingly more technical in nature. Relative to other lower rated securities BB rated securities have naturally benefited from the flight to quality over the past six months due to the challenges the market has been facing in regard to trading liquidity, coupled with the rather large outflows the sector has experienced dating back to last year.
Away from the energy sector, we have overweights to the chemical and paper sectors. While concerns around Chinese growth are likely to linger into 2016, continued growth in the U.S. and improved economic conditions in China would certainly benefit these sectors. We believe sector fundamentals are robust enough and sector balance sheets are still in good enough shape to even allow an economic slowdown to be manageable. We also carry an overweight to the transportation sector, predominately among holdings in the shipping and airline leasing segments. In particular, the medium-/long-range product tanker business is enjoying strong fundamentals.
We have reduced the Fund’s overall EM exposure. The huge decline in commodity prices in 2015 has caused economic growth to decline and has resulted in both corporate and sovereign downgrades. These markets are also suffering from numerous other headwinds including tightening credit conditions and ongoing political/geopolitical risk. We believe there will be tactical opportunities in the year ahead to add selectively, but in the meantime we are a bit cautious in our positioning. We believe European high yield is likely to underperform modestly in 2016. While void of the energy default risk that surrounds the U.S. market, the excess spread in markets outside of Europe will most likely lead to superior returns. European high yield has consistently been a top performing sector with the exception of 2011, when the European sovereign crisis reached its peak.
During the reporting period, we also continued to utilize various derivative instruments. We used Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposures. The effect of these activities was negligible on performance during the reporting period. We also used interest rate swaps as part of our portfolio construction strategy to manage the Fund’s duration and overall portfolio yield curve exposure. The interest rate swaps detracted from performance during the reporting period. These contracts were terminated prior to the end of the reporting period.
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In addition, we used foreign currency exchange contracts to manage the Fund’s foreign currency exposures. During the reporting period, these instruments were used primarily for hedging purposes to reduce unwanted currency exposure from the Fund’s bond portfolio. These positions had a positive impact on performance during the reporting period.
Nuveen Strategic Income Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed the Barclays Aggregate Bond Index and the Lipper Multi-Sector Income Funds Classification Average for the six-month reporting period. The period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy.
Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the Fed because it indicated that the U.S. economic recovery was far from robust. However, as the period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the final three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. As a result, the Treasury yield curve flattened as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, spreads widened across all sectors as investors favored higher-quality sectors of the market such as Treasuries and mortgage-backed securities, which outpaced corporate bonds by a wide margin. In the investment grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative outlook changes for several issuers and exacerbating selling pressure in an already weak market. Merger and acquisition (M&A) related financing also took a toll on the technical backdrop as the market tried to absorb nearly $70 billion in M&A related issuance. Market technicals remained weak into year-end as dealers tried to keep inventory levels low and oil prices hit new lows. Given strong fundamentals, financials outperformed the industrial sector, which was weighed down by growth concerns. These worries also caused BBB rated issuers to significantly underperform A rated issuers.
High yield bond prices came under extreme pressure as festering global growth concerns, the Fed’s mixed messages and accumulating sector specific issues weighed on confidence and led to a poor technical backdrop. A flight-to-quality ensued due to persistent commodity weakness and increased distress among lower rated issues. Energy bonds, which comprise approximately 13% of the market, continued to be pressured by falling crude prices. The weak global growth outlook also caused the headwinds in the commodity sector, with many base metal, iron ore and coal prices trading at multi-year lows. Elevated risks in the commodity sector curbed risk appetites and led to underperformance in the CCC rated credit space, which is more exposed to these cyclically weak areas. High yield spreads, which have been rising since mid-2014, ended the reporting period well above their historical average as a percentage of the 10-year Treasury yield, reflecting the extremely negative sentiment and investor outflows from the segment.
Among the securitized sectors of the bond market, mortgage-backed securities (MBS) issued by government agencies such as Fannie Mae (FNMA), Ginnie Mae (GNMA) and Freddie Mac (FHLMC) performed well during the reporting period, posting positive excess returns versus Treasuries. Range-bound levels of implied volatility in the agency MBS segment were supportive from a fundamental perspective, while strong bank and money manager demand provided a solid technical backdrop. Homeowner refinancing activity was relatively subdued and MBS prepayments stabilized at historically low levels. The Fed indicated that it will continue to re-invest MBS paydowns from its holdings until policy normalization is well under way, which gave investors comfort that technicals would
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Portfolio Managers’ Comments (continued)
remain favorable through much of 2016. Valuations were steady and investors embraced the combination of lower volatility and superior liquidity found in the agency MBS sector. Returns in the commercial mortgage-backed securities (CMBS) sector were lackluster during the reporting period as the segment underperformed Treasuries. Longer duration, newer vintage bonds struggled due to higher levels of new issuance and ongoing concerns about the quality of loans going into new deals. The valuation differential between CMBS deals became increasingly pronounced amid greater loan scrutiny in new deals. Traditional consumer asset-backed securities (ABS) generated excess returns over Treasuries as consumer credit trends remained favorable, although year-end balance sheet pressures and outflows from short-duration funds did create some technical pressure on the sector. ABS issuance was light given tepid investor demand for short, high quality paper as the Fed began the process of normalizing policy.
Non-U.S. interest rates and currencies took the Fed’s first move in stride, reacting moderately to prospects for a higher U.S. rate structure. A moderate message from the Fed, below trend global growth, the lack of inflation pressures and ongoing risk aversion in credit helped keep market rates in check. Europe and Japan, while posting reasonable growth data, continued to witness broadly disinflationary effects beyond energy, leading to meaningfully lower inflation expectations. After increased expectations earlier in the period, the European Central Bank disappointed marginally by offering only an extension of its quantitative easing plan late in the year, but clearly left the door open for more. The Bank of Japan continued its waiting game in the midst of mixed economic data. China was an ongoing source of volatility after surprising the market with a currency devaluation in August. Most developed foreign markets marginally outperformed the U.S. and yield curves were flatter. While currencies were volatile during the reporting period, the U.S. dollar generally appreciated versus most currencies. Emerging market (EM) currencies struggled with slow growth, declining commodity prices and reduced investor risk appetite. Developed currencies, such as the euro, fared better, but generally slipped on diverging monetary policies. The yen gained marginally amid global risk aversion and sluggish domestic activity.
A combination of sluggish global economic activity, low and volatile commodity prices and concerns about a Fed rate hike led to negative returns for EM debt. Mixed and decelerating data out of China continued to raise questions about the country’s growth and the resultant impact on the rest of the world. Political disarray, stagnant growth and currency weakness continued to plague Brazil, threatening further instability in this large EM player, while a surprise policy shift in South Africa exacerbated the volatility. In terms of regions, Latin America lagged, while Eastern Europe held in better given those countries’ proximity to the eurozone and better debt dynamics. Most local EM markets underperformed U.S. Treasuries. Nearly all EM currencies declined, with central Europe faring better and Brazil, Russia and South Africa among the worst performers due to global as well as domestic challenges.
The volatile market environment and pressures on credit and economically-sensitive sectors of the market drove the Fund’s shortfall versus the benchmark during the reporting period. The dramatic sell-off in high yield credit during the reporting period was the most significant factor. The Fund was positioned with a substantial overweight to high yield, while our holdings in oil and cyclical credits within the sector also contributed to some of the underperformance.
The investment grade credit sector also detracted due to the Fund’s small overweight versus the benchmark. However, the more significant factors in the sector were our greater-than-benchmark weight in cyclical credits and our lower quality bias/overweight to BBB rated credits, given the broader economic sensitivity of this ratings group. Issue selection was also negative for the reporting period as a whole, as the benefit from a large overweight to financials was more than negated by our smaller, but hard hit, positions in energy and cyclicals. On the other hand, our large weight in preferred securities, also in the financial sector, was beneficial to performance. Our exposure to EM investment grade credit detracted from performance, particularly early in the reporting period.
Foreign positions were a marginal detractor from performance. Our positions in foreign bonds detracted as spreads versus the U.S. more than offset yield advantages. However, our foreign currency positioning had little impact on the Fund’s performance during the reporting period.
Interest rate positioning added modestly to the Fund’s performance. The Fund benefited from our positioning for a flatter yield curve and tactical moves in rate positioning during the reporting period as rates rose.
The Fund’s key sector themes continue to emphasize income generation driven primarily through diversified exposure to investment grade and high yield credit, in addition to other spread opportunities away from credit. We continue to underweight mortgage and structured assets, given better opportunities elsewhere. We also continue to allocate away from Treasury and agency securities as these offered unattractive duration and yield profiles. Although the credit sectors are still volatile and liquidity can occasionally be
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challenging, we continue to believe credit fundamentals remain solid in most segments, while valuations provide ample compensation for fundamental risk and market volatility. Accordingly, we maintained the Fund’s overweight in investment grade and high yield credit.
Activity during the reporting period was driven largely by repositioning credit exposure in response to fundamental credit developments, valuation changes and opportunities due to primary and secondary market activity. We continued to reevaluate credit fundamentals in light of changing market, economic and company-specific developments. The Fund remained overweight to BBB rated companies within the investment grade sector. Although these credits have underperformed due to their higher economic sensitivity, we believe valuations have moved excessively and that yields are attractive in light of our fundamental outlook. We also maintained an overweight in financials. We continued to monitor developments in the energy sector very closely and assess the credit impact of developments in oil prices and energy fundamentals.
We reduced the Fund’s allocation to preferred securities toward the end of the reporting period. Although our outlook remains favorable for the sector, relative valuations had moved substantially versus alternatives; therefore, we chose to take advantage of market strength in preferreds to reduce the Fund’s weight in the segment. We also reduced foreign bond holdings during the period, given fundamental shifts in some markets and continued challenging fundamentals, particularly in emerging markets. We employed proceeds from these reductions toward moderate increases in mortgages, CMBS and investment grade financials, adding to portfolio liquidity at attractive valuations and providing for future flexibility.
Duration positioning remains defensive versus the benchmark, given the market’s adjustment following the Fed’s move, very limited inflationary pressures and the outlook for continued high levels of global liquidity and economic slack. The Fund remains biased toward a flatter yield curve.
During the reporting period, we also continued to utilize various derivative instruments. We used foreign currency exchange forward contracts to manage the Fund’s foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from the Fund’s portfolio, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation. These positions had a positive impact on performance during the reporting period.
We utilized domestic and foreign interest rate futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure and selected foreign bond futures to actively manage exposure to those markets. The overall effect on performance during the reporting period was negative. We also utilized interest rate swaps to manage portfolio duration and yield curve exposure and these positions also detracted from performance during the reporting period.
In addition, we entered into credit default swaps as a way to take on credit risk and earn credit spread. The effect of these activities on performance was negative during the reporting period and the positions were sold off.
Nuveen U.S. Infrastructure Bond Fund
The Fund’s Class A Shares at NAV underperformed both the Barclays Taxable Municipal Aggregate Eligible Index and the Lipper General & Insured Municipal Debt Funds Classification Average for the six-month reporting period. The reporting period began with the U.S. economy showing resilience in the face of weaker growth experienced by the rest of the global economy. The key area of focus was China, which showed markedly slower manufacturing activity and uncertainty surrounding actual levels of consumption. Slower Chinese production and the ongoing weakness across emerging markets led to renewed volatility and weakness in commodity prices across the board. Oil prices were highly volatile throughout the reporting period, declining rapidly following the end of June and selling off sharply again into year-end to a decade-low level of below $36-per-barrel level by December. The decline was driven by concerns over China’s slowdown, a global supply glut and the Organization of the Petroleum Exporting Countries (OPEC’s) decision to maintain current production levels. The fears over China and the uncertainty surrounding Federal Reserve (Fed) policy normalization also caused market volatility to spike, spurring a significant sell-off in global equity markets beginning in mid-August as China unexpectedly shifted currency policy.
Despite broad speculation that it would increase rates in September for the first time in nearly a decade, the Fed decided to keep the federal funds rate near zero at that meeting. The nation’s relatively weak wage growth continued to be an area of keen interest for the
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Portfolio Managers’ Comments (continued)
Fed because it indicated that the U.S. economic recovery was far from robust. However, as the reporting period progressed, the U.S. economy continued to expand at a moderate pace, while job growth improved with the unemployment rate falling to 5.0% in the final three months of the year. Finally, at the Fed’s December meeting, policymakers began the long-awaited process of policy normalization by raising the federal funds rate by 0.25%, marking the end of a historically long period of low rates designed to boost the U.S. economic recovery. In anticipation of the Fed move, the Treasury yield curve flattened during the period as rates for Treasuries with maturities of less than five years moved higher in earnest, while rates for intermediate- and long-term Treasuries fell modestly.
During the reporting period, interest rates in the taxable municipal bond market declined modestly with the average yield of the Barclays Taxable Municipal Aggregate Eligible Index falling from 4.30% to 4.25%. Taxable municipal bonds with longer durations generally outperformed those with shorter durations, although the best results came from bonds with durations of 8 to 10 years, which returned 3.68% versus the 3.00% six-month return for the index. Credit spreads narrowed as taxable municipal bonds rated BBB/Baa returned 6.65% and those A rated returned 3.16%, versus returns of 2.82% for bonds rated AAA and 2.64% for AA rated bonds. The strongest performing sectors in this segment of the market included tollroads, airports, water/sewer, hospitals, dedicated tax and higher education. State and local general obligations (GOs), tobacco and housing underperformed.
High yield bond prices came under extreme pressure as festering global growth concerns, uncertainty around when the Fed would begin to raise interests and accumulating sector-specific issues weighed on confidence and led to a poor technical backdrop. A flight-to-quality ensued due to persistent commodity weakness and increased distress among lower rated issues. Energy bonds, which comprise approximately 13% of the market, continued to be pressured by falling crude prices. The weak global growth outlook also caused the headwinds in the commodity sector, with many base metal, iron ore and coal prices trading at multi-year lows. Elevated risks in the commodity sector curbed risk appetites and led to underperformance in the CCC rated credit space, which is more exposed to these cyclically weak areas. High yield spreads, which have been rising since mid-2014, ended the reporting period well above their historical average, as a percentage of the 10-year Treasury yield, reflecting the extremely negative sentiment and investor outflows from the segment. The Barclays U.S. Corporate High Yield Bond Index ended the reporting period with a -6.82% six-month return.
In the investment grade corporate market, commodity price volatility and heavy new issue supply kept technicals weak in higher risk sectors, causing lower quality bonds to underperform significantly. Analysts at ratings agencies reduced price forecasts for energy and metals, causing negative outlook changes for several issuers and exacerbating selling pressure in an already weak market. Merger and acquisition (M&A) related financing also took a toll on the technical backdrop as the market tried to absorb nearly $70 billion in M&A related issuance. Market technicals remained weak into year-end as dealers tried to keep inventory levels low and oil prices hit new lows in December. However, financial spreads were steady and this sector outperformed the industrial sector, which was weighed down by the weakness in commodity-related bonds. The Barclays U.S. Corporate Investment Grade Index returned 0.24% during the reporting period.
The Fund’s goal is to provide investors with an attractive level of income by investing in a portfolio of debt securities from various entities that own, operate or develop infrastructure assets in the U.S. These investments include municipal, high yield corporate and investment-grade corporate bonds that finance either public or private infrastructure projects. We define infrastructure as the vital structures, facilities and services that support the U.S. economy and society including: transportation; energy and utilities; communications; and social and government functions. During the six-month reporting period, approximately 65% of the Fund was allocated to the municipal bond market, approximately 21% to the high yield corporate market and approximately 14% to the investment grade corporate market. As noted in the market overview comments, the municipal bond market turned in the strongest absolute returns over this time frame. Therefore, the Fund’s most significant sources of underperformance versus the benchmark Barclays Taxable Municipal Aggregate Eligible Index were its allocations to the high yield and investment grade corporate sectors.
In terms of performance within each of the three segments, the Fund’s municipal bond portfolio outperformed relative to its benchmark. Within the municipal bond portfolio, our overweight positions in bonds rated BBB/Baa and single A were beneficial. Likewise, our underweight position in state GOs and overweights in the tollroad and dedicated tax sectors contributed positively to excess returns. On the other hand, an underweight position in higher education and an overweight in public power detracted. The use of futures in the municipal bond portfolio to hedge against rising interest rates was also detrimental. Meanwhile, our allocations by duration had no material impact on performance. The benefits from our overweight in bonds with durations of 12 to 14 years and
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underweight in durations of less than 4 years were offset by the negative effect of an underweight in bonds with durations of 8 to 10 years.
The Fund’s high yield portfolio underperformed its benchmark as the fear of a slowdown in global growth and the impact such a slowdown could have on U.S. issuers created a substantially reduced appetite for high yield assets. As noted above, the sell-off was particularly pronounced in the more economically-sensitive commodity-related sectors. This period of risk reduction impacted the Fund’s high yield holdings because the previously somewhat defensive segments, such as energy midstream and power producers, were heavily sold later in the period given their relative richness versus exploration and production, oil services, and metals and mining credits. Outflows across high yield and the lack of availability to the new issue market further exacerbated the investing environment. The high yield portfolio was also negatively impacted by its moderately higher exposure to lower rated credits versus the benchmark. The portfolio is overweight to B rated credits and, to a lesser extent, CCC rated credits and underweight to BB rated credits. The higher rated high yield credits dramatically outperformed the lower rated credits as expected in a weak period for credit markets.
The investment grade credit portion of the Fund underperformed its benchmark due to security selection and a lower quality bias. In terms of security selection, the investment grade portfolio’s heavy relative weightings in the railroad and energy industries versus the index detracted from performance because these two areas significantly underperformed the broader credit market. Also, this portfolio’s weight in BBB rated securities was more than one and a half times greater than the benchmark weight, while the BBB rated segment underperformed the broader credit market by 190 basis points. Our portfolio’s duration was two years longer than the benchmark and concentrated in the 10- to 30-year part of the yield curve, which modestly offset some of the underperformance as long rates fell by 18 basis points during the reporting period.
As shareholder inflows hit the Fund, generally speaking, we allocated around 65% to public infrastructure, 20% to high yield private infrastructure and 15% to investment grade private infrastructure. In the municipal sleeve, we established three new positions, while adding odd lot pieces to seven existing positions. We also exited several positions. Following Moody’s downgrade of Chicago’s GO debt to below investment grade, the city’s enterprise bonds (water, wastewater, etc.) immediately traded down in sympathy. After making some degree of price recovery in the months following the GO downgrade, we elected to exit the Fund’s positions in Chicago Wastewater. In addition, based on deteriorating fundamentals, we exited the Fund’s Cook County GO holding.
Trading activity within the high yield bond segment revolved around reducing exposure to investments in the commodity-related segments such as energy midstream and power producers. We redeployed the proceeds into less economically-sensitive segments such as health care.
In the investment grade sleeve, given the difficult trading conditions in the energy and railroad markets, we chose to hold existing positions with a longer-term view toward recovery.
As part of our investment process, the bonds that we focus on are typically backed by assets that have recurring revenue streams and natural monopolies, for example an electric or gas utility, or long-term contracts that offer predictable revenue streams, such as a pipeline. The Fund’s largest concentrations included the following: transportation, dedicated tax (primarily backing mass public transit), private utilities, energy and public utilities.
We also shorted U.S. Treasury futures contracts to hedge against potential increases in interest rates. The effect on performance was negative during the period.
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and Dividend Information
Risk Considerations
Nuveen Global Total Return Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The Fund gains additional exposure to currency rates, and therefore to the risk of currency fluctuation, through investment in foreign currency contracts. The risks of foreign investments are magnified in emerging markets. Asset-backed and mortgage-backed securities are also subject to prepayment risk, liquidity risk, default risk and adverse economic developments. The Fund’s potential use of derivative instruments involves a high degree of financial risk and additional transaction costs.
Nuveen High Income Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, income risk, and other investment company risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards.
Nuveen Strategic Income Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The Fund gains additional exposure to currency rates, and therefore to the risk of currency fluctuation, through investment in foreign currency contracts. The risks of foreign investments are magnified in emerging markets. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen U.S. Infrastructure Bond Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Because the Fund may invest in infrastructure-related securities, the Fund could have greater exposure to adverse economic, regulatory, political, legal and other changes affecting the issuers of such securities. The Fund is subject to, interest rate risk; as interest rates rise, bond prices fall. Price changes are generally greater for longer-duration bonds. Credit risk refers to the risk that an issuer may fail to make interest or principal payments when due or that the value of a security may decline due to concerns about the issuer making such payments. Declines in value will generally be greater for securities with longer maturities. Investments in below investment grade or high yield securities are subject to liquidity risk and heightened credit risk. The Fund’s use of inverse floaters creates effective leverage. Leverage involves the risk that the Fund could lose more than its original investment and also increases the Fund’s exposure to volatility and interest rate risk. Non-U.S./Emerging Markets 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. More information on these risk considerations, as well as information on other risks to which the Fund is subject, such as bond market liquidity, call, currency, derivatives, general municipal securities market, income, loan settlement risk, market, municipal lease obligations, and zero coupon bonds risks, are included in the Fund’s prospectus.
16 | Nuveen Investments |
Dividend Information
Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
As of December 31, 2015, all of the Funds had positive UNII balances, based upon our best estimate, for tax purposes. The Nuveen High Income Bond Fund and Nuveen Strategic Income Fund had positive UNII balances while the Nuveen Global Total Return Bond Fund and Nuveen U.S. Infrastructure Bond Fund had negative UNII balances for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of a Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report’s Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
Nuveen Investments | 17 |
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18 | Nuveen Investments |
and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown within this section of the report.
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 fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information. 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, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at net asset value (NAV) only.
The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any) as shown in the most recent prospectus. The expense ratios include management fees and other fees and expenses.
Nuveen Investments | 19 |
Fund Performance and Expense Ratios (continued)
Nuveen Global Total Return Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used in this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class A Shares at NAV | (3.63)% | (7.52)% | 1.31% | |||||||||
Class A Shares at maximum Offering Price | (8.21)% | (11.91)% | 0.11% | |||||||||
Barclays Global Aggregate Unhedged Bond Index | (0.08)% | (3.15)% | (0.13)% | |||||||||
Lipper Global Income Funds Classification Average | (1.73)% | (3.34)% | 1.11% | |||||||||
Class C Shares | (3.99)% | (8.20)% | 0.67% | |||||||||
Class R3 Shares | (3.75)% | (7.78)% | 1.13% | |||||||||
Class I Shares | (3.49)% | (7.30)% | 1.63% |
Since inception returns are from 12/02/11. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.75% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or of after November 1, 2015. 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
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Gross Expense Ratios | 1.89% | 2.64% | 2.14% | 1.64% | ||||||||||||
Net Expense Ratios | 0.96% | 1.71% | 1.21% | 0.71% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through October 31, 2016, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities, and extraordinary expenses) do not exceed 0.75% of the average daily net assets of any class of Fund shares. The expense limitation expiring October 31, 2016, may be terminated or modified prior to that date only with the approval of the Board of Trustees of the Fund.
20 | Nuveen Investments |
Nuveen High Income Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to Glossary of Terms Used in this Report for definitions of terms used in this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (13.37)% | (11.95)% | 2.55% | 5.04% | ||||||||||||
Class A Shares at maximum Offering Price | (17.48)% | (16.16)% | 1.55% | 4.52% | ||||||||||||
Barclays High Yield 2% Issuer Capped Index | (6.79)% | (4.43)% | 5.03% | 6.95% | ||||||||||||
Lipper High Current Yield Funds Classification Average | (6.25)% | (4.09)% | 4.08% | 5.58% | ||||||||||||
Class C Shares | (13.75)% | (12.58)% | 1.85% | 4.29% | ||||||||||||
Class R3 Shares | (13.52)% | (12.30)% | 2.31% | 4.78% | ||||||||||||
Class I Shares | (13.21)% | (11.67)% | 2.87% | 5.33% |
Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.75% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Expense Ratios | 1.01% | 1.76% | 1.25% | 0.76% |
Nuveen Investments | 21 |
Fund Performance and Expense Ratios (continued)
Nuveen Strategic Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to Glossary of Terms Used in this Report for definitions of terms used in this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (4.74)% | (4.62)% | 3.78% | 5.24% | ||||||||||||
Class A Shares at maximum Offering Price | (8.81)% | (8.69)% | 2.88% | 4.79% | ||||||||||||
Barclays Aggregate Bond Index | 0.65% | 0.55% | 3.25% | 4.51% | ||||||||||||
Lipper Multi-Sector Income Funds Classification Average | (2.69)% | (1.68)% | 3.46% | 4.74% | ||||||||||||
Class C Shares | (5.07)% | (5.34)% | 3.01% | 4.46% | ||||||||||||
Class R3 Shares | (4.83)% | (4.81)% | 3.52% | 4.94% | ||||||||||||
Class I Shares | (4.62)% | (4.37)% | 4.03% | 5.49% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class R6 Shares | (4.62)% | (4.71)% |
Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.92% | 1.67% | 1.17% | 0.61% | 0.67% | |||||||||||||||
Net Expense Ratios | 0.82% | 1.57% | 1.07% | 0.50% | 0.57% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through October 31, 2016, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.59% of the average daily net assets of any class of Fund shares. However, because Class R6 shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Fund’s Board of Directors.
22 | Nuveen Investments |
Nuveen U.S. Infrastructure Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used in this section.
Fund Performance
Average Annual Total Returns as of December 31, 2015
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class A Shares at NAV | (0.43)% | (1.79)% | 1.34% | |||||||||
Class A Shares at maximum Offering Price | (4.66)% | (5.96)% | (1.31)% | |||||||||
Barclays Taxable Municipal Aggregate Eligible Index | 3.00% | (0.01)% | 5.11% | |||||||||
Lipper General & Insured Municipal Debt Funds Classification Average | 3.20% | 2.98% | 4.24% | |||||||||
Class C Shares | (0.87)% | (2.60)% | 0.54% | |||||||||
Class I Shares | (0.31)% | (1.55)% | 1.58% |
Since inception returns are from 5/12/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% 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 eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. 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
Share Class | ||||||||||||
Class A | Class C | Class I | ||||||||||
Gross Expense Ratios | 1.89% | 2.61% | 1.60% | |||||||||
Net Expense Ratios | 0.95% | 1.70% | 0.70% |
The Fund’s investment adviser contractually has agreed to waive fees and/or reimburse expenses through October 31, 2017, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities, and extraordinary expenses) do not exceed 0.74% of the average daily net assets of any class of Fund shares. The expense limitation may be terminated or modified prior to that date only with the approval of the Fund’s Board of Trustees.
Nuveen Investments | 23 |
Yields as of December 31, 2015
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a Fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the Fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. Refer to the Fund Performance and Expense Ratios page for further details on the investment adviser’s most recent agreement with the Fund to waive fees and/or reimburse expenses, where applicable. Dividend Yield may differ from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
Nuveen Global Total Return Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 3.89% | 3.31% | 3.83% | 4.34% | ||||||||||||
SEC 30-Day Yield – Subsidized | 3.78% | 3.21% | 3.74% | 4.23% | ||||||||||||
SEC 30-Day Yield – Unsubsidized | 2.61% | 1.99% | 2.49% | 2.99% |
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 7.40% | 6.90% | 7.44% | 8.00% | ||||||||||||
SEC 30-Day Yield | 10.91% | 10.71% | 11.24% | 11.74% |
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 5.02% | 4.44% | 4.99% | 5.48% | 5.48% | |||||||||||||||
SEC 30-Day Yield – Subsidized | 5.43% | 4.91% | 5.41% | 6.01% | 5.92% | |||||||||||||||
SEC 30-Day Yield – Unsubsidized | 5.31% | 4.79% | 5.25% | 5.87% | 5.80% |
Nuveen U.S. Infrastructure Bond Fund
Share Class | ||||||||||||
Class A1 | Class C | Class I | ||||||||||
Dividend Yield | 4.00% | 3.39% | 4.42% | |||||||||
SEC 30-Day Yield – Subsidized | 4.06% | 3.45% | 4.50% | |||||||||
SEC 30-Day Yield – Unsubsidized | 2.96% | 2.30% | 3.34% |
1 | The SEC Yield for Class A Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
24 | Nuveen Investments |
Summaries as of December 31, 2015
This data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Nuveen Global Total Return Bond Fund
Fund Allocation
(% of net assets)
Convertible Preferred Securities | 0.6% | |||
Corporate Bonds | 44.4% | |||
$1,000 (par or similar) Institutional Preferred | 6.8% | |||
Asset-Backed and Mortgage-Backed Securities | 7.3% | |||
Sovereign Debt | 39.8% | |||
Repurchase Agreements | 6.4% | |||
Other Assets Less Liabilities | (5.3)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bond holdings)
Banks | 20.9% | |||
Oil, Gas & Consumable Fuels | 8.2% | |||
Metals & Mining | 6.4% | |||
Capital Markets | 5.1% | |||
Wireless Telecommunication Services | 4.7% | |||
Software | 4.6% | |||
Real Estate Investment Trust | 4.5% | |||
Energy Equipment & Services | 4.2% | |||
Chemicals | 3.9% | |||
Electric Utilities | 3.7% | |||
Media | 3.5% | |||
Industrial Conglomerates | 3.3% | |||
Diversified Financial Services | 3.2% | |||
Consumer Finance | 2.9% | |||
Insurance | 2.7% | |||
Other | 18.2% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)1
AAA/U.S. Guaranteed | 19.2% | |||
AA | 0.5% | |||
A | 21.1% | |||
BBB | 35.3% | |||
BB or Lower | 23.9% | |||
Total | 100% |
Country Allocation
(% of net assets)
United States | 37.5% | |||
Mexico | 11.4% | |||
Germany | 9.1% | |||
United Kingdom | 6.3% | |||
Australia | 5.2% | |||
France | 4.4% | |||
South Africa | 3.9% | |||
Italy | 3.9% | |||
Portugal | 3.7% | |||
Hungary | 2.5% | |||
Canada | 2.2% | |||
Switzerland | 1.7% | |||
Other | 13.5% | |||
Other Assets Less Liabilities | (5.3)% | |||
Net Assets | 100% |
1 | Excluding investments in derivatives. |
Nuveen Investments | 25 |
Holding Summaries as of December 31, 2015 (continued)
Nuveen High Income Bond Fund
Fund Allocation
(% of net assets)
Common Stocks | 0.3% | |||
Convertible Preferred Securities | 1.2% | |||
Variable Rate Senior Loan Interests | 6.3% | |||
$25 Par (or similar) Retail Preferred | 6.1% | |||
Corporate Bonds | 73.8% | |||
Convertible Bonds | 0.5% | |||
$1,000 (par or similar) Institutional Preferred | 3.2% | |||
Asset-Backed Securities | 0.0% | |||
Investment Companies | 2.8% | |||
Warrants | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 5.6% | |||
Money Market Funds | 4.4% | |||
Other Assets Less Liabilities | (4.2)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bond holdings)
Oil, Gas & Consumable Fuels | 12.3% | |||
Media | 5.4% | |||
Metals & Mining | 4.7% | |||
Chemicals | 4.4% | |||
Building Products | 4.4% | |||
Wireless Telecommunication Services | 3.8% | |||
Marine | 3.7% | |||
Diversified Telecommunication Services | 3.7% | |||
Hotels, Restaurants & Leisure | 3.7% | |||
Construction Materials | 3.0% | |||
Containers & Packaging | 2.8% | |||
Auto Components | 2.8% | |||
Food & Staples Retailing | 2.6% | |||
Health Care Providers & Services | 2.6% | |||
Paper & Forest Products | 2.5% | |||
Diversified Financial Services | 2.2% | |||
Household Durables | 2.2% | |||
Food Products | 2.1% | |||
Independent Power & Renewable Electricity Producers | 2.1% | |||
Specialty Retail | 2.1% | |||
Aerospace & Defense | 2.0% | |||
Electric Utilities | 2.0% | |||
Consumer Finance | 1.8% | |||
Construction & Engineering | 1.5% | |||
Other | 19.6% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
fixed-income investments)1
AA | 0.0% | |||
BBB | 3.9% | |||
BB or Lower | 87.4% | |||
N/R (not rated) | 8.7% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
26 | Nuveen Investments |
Nuveen Strategic Income Fund
Fund Allocation
(% of net assets)
Common Stocks | 0.0% | |||
Convertible Preferred Securities | 0.1% | |||
Variable Rate Senior Loan Interests | 1.3% | |||
$25 Par (or similar) Retail Preferred | 0.5% | |||
Corporate Bonds | 73.4% | |||
$1,000 (par or similar) Institutional Preferred | 6.6% | |||
U.S. Government and Agency Obligations | 0.0% | |||
Asset-Backed and Mortgage-Backed Securities | 10.2% | |||
Sovereign Debt | 5.6% | |||
Investments Purchased with Collateral from Securities Lending | 13.0% | |||
Money Market Funds | 4.8% | |||
Other Assets Less Liabilities | (15.5)% | |||
Net Assets | 100% |
Corporate Debt: Industries
(% of total corporate bond holdings)
Banks | 12.1% | |||
Oil, Gas & Consumable Fuels | 11.3% | |||
Media | 6.6% | |||
Capital Markets | 6.5% | |||
Diversified Telecommunication Services | 4.1% | |||
Metals & Mining | 3.8% | |||
Insurance | 3.7% | |||
Chemicals | 3.1% | |||
Real Estate Investment Trust | 3.0% | |||
Diversified Financial Services | 2.8% | |||
Wireless Telecommunication Services | 2.5% | |||
Consumer Finance | 2.5% | |||
Energy Equipment & Services | 2.3% | |||
Specialty Retail | 1.9% | |||
Household Durables | 1.8% | |||
Containers & Packaging | 1.7% | |||
Hotels, Restaurants & Leisure | 1.6% | |||
Commercial Services & Supplies | 1.6% | |||
Machinery | 1.5% | |||
Aerospace & Defense | 1.5% | |||
Electric Utilities | 1.5% | |||
Food Products | 1.5% | |||
Building Products | 1.4% | |||
Other | 19.7% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
fixed-income investments)1
AAA/U.S. Guaranteed | 5.2% | |||
AA | 0.8% | |||
A | 21.9% | |||
BBB | 35.1% | |||
BB or Lower | 36.7% | |||
N/R (not rated) | 0.3% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
Nuveen Investments | 27 |
Holding Summaries as of December 31, 2015 (continued)
Nuveen U.S. Infrastructure Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 33.9% | |||
Municipal Bonds | 64.2% | |||
Other Assets Less Liabilities | 1.9% | |||
Net Assets | 100% |
States and Territories
(% of net assets)
California | 12.9% | |||
Illinois | 9.1% | |||
New York | 7.5% | |||
Texas | 5.0% | |||
New Jersey | 4.8% | |||
Arizona | 4.2% | |||
Ohio | 4.2% | |||
Other | 16.5% | |||
Total | 64.2% |
Portfolio Composition
(% of net assets)
Transportation | 21.0% | |||
Tax Obligation/Limited | 16.5% | |||
Utilities | 11.3% | |||
Oil, Gas & Consumable Fuels | 9.3% | |||
Tax Obligation/General | 7.4% | |||
Water and Sewer | 5.1% | |||
Health Care Providers & Services | 4.4% | |||
Electric Utilities | 4.4% | |||
Other | 18.7% | |||
Other Assets Less Liabilities | 1.9% | |||
Net Assets | 100% |
Portfolio Credit Quality
(% of total long-term investments)1
AAA/U.S. Guaranteed | 3.5% | |||
AA | 41.3% | |||
A | 18.5% | |||
BBB | 15.8% | |||
BB or Lower | 20.9% | |||
Total | 100% |
1 | Excluding investments in derivatives. |
28 | Nuveen Investments |
Examples
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended December 31, 2015.
The beginning of the period is July 1, 2015.
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 each Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Global Total Return Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 963.70 | $ | 960.10 | $ | 962.50 | $ | 965.10 | ||||||||
Expenses Incurred During Period | $ | 4.74 | $ | 8.43 | $ | 5.97 | $ | 3.51 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,020.31 | $ | 1,016.54 | $ | 1,019.05 | $ | 1,021.57 | ||||||||
Expenses Incurred During Period | $ | 4.88 | $ | 8.67 | $ | 6.14 | $ | 3.61 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.96%, 1.71%, 1.21% and 0.71% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Investments | 29 |
Expense Examples (continued)
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 866.30 | $ | 862.50 | $ | 864.80 | $ | 867.90 | ||||||||
Expenses Incurred During Period | $ | 4.79 | $ | 8.33 | $ | 6.00 | $ | 3.62 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,020.01 | $ | 1,016.19 | $ | 1,018.70 | $ | 1,021.27 | ||||||||
Expenses Incurred During Period | $ | 5.18 | $ | 9.02 | $ | 6.50 | $ | 3.91 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.02%, 1.78%, 1.28% and 0.77% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 952.60 | $ | 949.30 | $ | 951.70 | $ | 953.80 | $ | 953.80 | ||||||||||
Expenses Incurred During Period | $ | 4.02 | $ | 7.69 | $ | 5.25 | $ | 2.46 | $ | 2.80 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.01 | $ | 1,017.24 | $ | 1,019.76 | $ | 1,022.62 | $ | 1,022.27 | ||||||||||
Expenses Incurred During Period | $ | 4.17 | $ | 7.96 | $ | 5.43 | $ | 2.54 | $ | 2.90 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.82%, 1.57%, 1.07%, 0.50% and 0.57% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Nuveen U.S. Infrastructure Bond Fund
Share Class | ||||||||||||
Class A | Class C | Class I | ||||||||||
Actual Performance | ||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value | $ | 995.70 | $ | 991.30 | $ | 996.90 | ||||||
Expenses Incurred During Period | $ | 4.77 | $ | 8.51 | $ | 3.51 | ||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value | $ | 1,020.36 | $ | 1,016.59 | $ | 1,021.62 | ||||||
Expenses Incurred During Period | $ | 4.82 | $ | 8.62 | $ | 3.56 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.95%, 1.70% and 0.70% for Classes A, C, and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one half year period).
30 | Nuveen Investments |
Nuveen Global Total Return Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
LONG-TERM INVESTMENTS – 105.3% | ||||||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.6% |
| |||||||||||||||||||
Banks – 0.6% | ||||||||||||||||||||
75 | Bank of America Corporation | 7.250% | BB+ | $ | 81,995 | |||||||||||||||
Total Convertible Preferred Securities (cost $63,225) |
| 81,995 | ||||||||||||||||||
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 44.4% | ||||||||||||||||||||
Air Freight & Logistics – 0.1% | ||||||||||||||||||||
$ | 10 | XPO Logistics, Inc., 144A | 6.500% | 6/15/22 | B2 | $ | 9,250 | |||||||||||||
Auto Components – 0.3% | ||||||||||||||||||||
45 | American & Axle Manufacturing Inc. | 6.625% | 10/15/22 | BB– | 47,138 | |||||||||||||||
Automobiles – 0.2% | ||||||||||||||||||||
30 | General Motors Financial Company Inc. | 4.250% | 5/15/23 | BBB– | 29,677 | |||||||||||||||
Banks – 9.3% | ||||||||||||||||||||
100 | Bank of America Corporation | 4.200% | 8/26/24 | A– | 100,145 | |||||||||||||||
200 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 192,205 | |||||||||||||||
45 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 45,675 | |||||||||||||||
95 | Citigroup Inc. | 4.500% | 1/14/22 | A | 101,765 | |||||||||||||||
30 | Citigroup Inc. | 6.125% | 8/25/36 | A– | 33,876 | |||||||||||||||
25 | General Electric Capital Corporation | 6.875% | 1/10/39 | AA+ | 34,075 | |||||||||||||||
25 | HSBC Holdings PLC | 6.800% | 6/01/38 | A+ | 31,117 | |||||||||||||||
45 | JPMorgan Chase & Company | 6.400% | 5/15/38 | A+ | 57,322 | |||||||||||||||
35 | Royal Bank of Scotland Group PLC | 6.100% | 6/10/23 | BBB | 37,622 | |||||||||||||||
200 | Santander UK PLC, 144A | 5.000% | 11/07/23 | A– | 208,190 | |||||||||||||||
200 | Societe Generale, 144A | 5.000% | 1/17/24 | A– | 203,960 | |||||||||||||||
200 | State Bank of India London, 144A | 4.875% | 4/17/24 | BBB– | 213,757 | |||||||||||||||
25 | Wells Fargo & Company | 3.450% | 2/13/23 | A+ | 25,068 | |||||||||||||||
Total Banks | 1,284,777 | |||||||||||||||||||
Building Products – 0.4% | ||||||||||||||||||||
60 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB– | 60,073 | |||||||||||||||
Capital Markets – 2.3% | ||||||||||||||||||||
75 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 85,299 | |||||||||||||||
85 | Goldman Sachs Group, Inc. | 3.625% | 1/22/23 | A | 85,998 | |||||||||||||||
75 | Morgan Stanley | 4.000% | 7/23/25 | A | 77,298 | |||||||||||||||
70 | Morgan Stanley | 3.950% | 4/23/27 | A– | 67,970 | |||||||||||||||
Total Capital Markets | 316,565 |
Nuveen Investments | 31 |
Nuveen Global Total Return Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Chemicals – 1.7% | ||||||||||||||||||||
$ | 25 | Hexion Inc. | 6.625% | 4/15/20 | B3 | $ | 19,563 | |||||||||||||
25 | Momentive Performance Materials Inc., (4), (5) | 8.875% | 10/15/20 | N/R | — | |||||||||||||||
25 | Momentive Performance Materials Inc. | 3.880% | 10/24/21 | B | 17,250 | |||||||||||||||
200 | Office Cherifien Des Phosphates SA, 144A | 5.625% | 4/25/24 | BBB– | 202,950 | |||||||||||||||
Total Chemicals | 239,763 | |||||||||||||||||||
Consumer Finance – 1.3% | ||||||||||||||||||||
100 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 97,903 | |||||||||||||||
75 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 80,238 | |||||||||||||||
Total Consumer Finance | 178,141 | |||||||||||||||||||
Containers & Packaging – 0.3% | ||||||||||||||||||||
50 | CAD | Cascades Inc., 144A | 5.500% | 7/15/21 | Ba3 | 35,090 | ||||||||||||||
Diversified Consumer Services – 0.0% | ||||||||||||||||||||
20 | Nine West Holdings Incorporated, 144A | 8.250% | 3/15/19 | CCC– | 4,000 | |||||||||||||||
Diversified Financial Services – 1.4% | ||||||||||||||||||||
200 | BNP Paribas | 4.250% | 10/15/24 | A | 198,234 | |||||||||||||||
Diversified Telecommunication Services – 0.7% | ||||||||||||||||||||
25 | AT&T, Inc. | 5.550% | 8/15/41 | A– | 25,103 | |||||||||||||||
65 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 68,088 | |||||||||||||||
Total Diversified Telecommunication Services | 93,191 | |||||||||||||||||||
Electric Utilities – 1.6% | ||||||||||||||||||||
55 | APT Pipelines Limited, 144A | 3.875% | 10/11/22 | BBB | 52,933 | |||||||||||||||
200 | Eskom Holdings Limited, 144A | 7.125% | 2/11/25 | BB+ | 173,000 | |||||||||||||||
Total Electric Utilities | 225,933 | |||||||||||||||||||
Energy Equipment & Services – 1.9% | ||||||||||||||||||||
55 | Nabors Industries Inc. | 4.625% | 9/15/21 | Baa2 | 45,215 | |||||||||||||||
200 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 195,049 | |||||||||||||||
25 | Weatherford International PLC | 7.000% | 3/15/38 | BBB– | 17,438 | |||||||||||||||
Total Energy Equipment & Services | 257,702 | |||||||||||||||||||
Health Care Equipment & Supplies – 0.8% | ||||||||||||||||||||
100 | EUR | Ephios Bondco PLC, 144A | 6.250% | 7/01/22 | B+ | 112,690 | ||||||||||||||
Household Durables – 0.3% | ||||||||||||||||||||
50 | Brookfield Residential Properties Inc., 144A | 6.500% | 12/15/20 | BB– | 48,188 | |||||||||||||||
Household Products – 0.7% | ||||||||||||||||||||
100 | Kimberly-Clark de Mexico, S.A.B. de C.V, 144A | 3.250% | 3/12/25 | A | 96,339 | |||||||||||||||
Independent Power & Renewable Electricity Producers – 0.1% | ||||||||||||||||||||
20 | GenOn Energy Inc. | 9.500% | 10/15/18 | B– | 16,157 |
32 | Nuveen Investments |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Industrial Conglomerates – 1.5% | ||||||||||||||||||||
$ | 200 | Alfa SAB de CV, 144A | 5.250% | 3/25/24 | BBB– | $ | 202,500 | |||||||||||||
Insurance – 1.2% | ||||||||||||||||||||
50 | Genworth Holdings Inc. | 4.800% | 2/15/24 | Ba1 | 33,750 | |||||||||||||||
30 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 31,800 | |||||||||||||||
100 | Symetra Financial Corporation | 4.250% | 7/15/24 | BBB+ | 100,795 | |||||||||||||||
Total Insurance | 166,345 | |||||||||||||||||||
Machinery – 1.0% | ||||||||||||||||||||
55 | Eaton Corporation | 4.150% | 11/01/42 | A– | 50,707 | |||||||||||||||
50 | Ingersoll Rand | 5.750% | 6/15/43 | BBB | 54,497 | |||||||||||||||
40 | Terex Corporation | 6.000% | 5/15/21 | BB | 36,800 | |||||||||||||||
Total Machinery | 142,004 | |||||||||||||||||||
Media – 1.6% | ||||||||||||||||||||
70 | 21st Century Fox America Inc. | 6.650% | 11/15/37 | BBB+ | 81,344 | |||||||||||||||
20 | Cequel Communication Holdings I, 144A | 5.125% | 12/15/21 | B– | 18,000 | |||||||||||||||
55 | DIRECTV Holdings LLC | 3.800% | 3/15/22 | A– | 55,381 | |||||||||||||||
45 | SES SA, 144A | 3.600% | 4/04/23 | BBB | 43,835 | |||||||||||||||
25 | CAD | Videotron Limited, 144A | 5.625% | 6/15/25 | BB | 18,159 | ||||||||||||||
Total Media | 216,719 | |||||||||||||||||||
Metals & Mining – 2.8% | ||||||||||||||||||||
55 | Alcoa Inc. | 5.400% | 4/15/21 | BBB– | 53,488 | |||||||||||||||
45 | Allegheny Technologies Inc. | 6.625% | 8/15/23 | BB– | 26,550 | |||||||||||||||
25 | Anglogold Holdings PLC | 6.500% | 4/15/40 | Baa3 | 16,625 | |||||||||||||||
55 | ArcelorMittal | 7.000% | 2/25/22 | BB+ | 44,275 | |||||||||||||||
35 | Century Aluminum Company, 144A | 7.500% | 6/01/21 | BB– | 23,450 | |||||||||||||||
25 | First Quantum Minerals Limited, 144A | 6.750% | 2/15/20 | BB– | 16,125 | |||||||||||||||
75 | Freeport McMoRan, Inc. | 3.550% | 3/01/22 | BBB | 43,500 | |||||||||||||||
50 | Newmont Mining Corporation | 3.500% | 3/15/22 | BBB | 44,582 | |||||||||||||||
50 | Teck Resources Limited | 3.750% | 2/01/23 | BB+ | 23,125 | |||||||||||||||
25 | Vale Overseas Limited | 6.875% | 11/10/39 | BBB | 17,373 | |||||||||||||||
100 | Yamana Gold Inc. | 4.950% | 7/15/24 | Baa3 | 84,855 | |||||||||||||||
Total Metals & Mining | 393,948 | |||||||||||||||||||
Multiline Retail – 0.2% | ||||||||||||||||||||
25 | Family Tree Escrow LLC, 144A | 5.250% | 3/01/20 | Ba3 | 25,813 | |||||||||||||||
Oil, Gas & Consumable Fuels – 3.7% | ||||||||||||||||||||
50 | Amerada Hess Corporation | 7.125% | 3/15/33 | BBB | 48,700 | |||||||||||||||
50 | Anadarko Petroleum Corporation | 6.200% | 3/15/40 | BBB | 46,000 | |||||||||||||||
80 | Apache Corporation | 4.250% | 1/15/44 | BBB+ | 64,026 | |||||||||||||||
150 | CAD | Baytex Energy Corporation | 6.625% | 7/19/22 | BB | 82,763 |
Nuveen Investments | 33 |
Nuveen Global Total Return Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 42 | California Resources Corporation, 144A | 8.000% | 12/15/22 | BB+ | $ | 22,103 | |||||||||||||
17 | California Resources Corporation | 5.500% | 9/15/21 | BB– | 5,355 | |||||||||||||||
25 | Calumet Specialty Products | 7.625% | 1/15/22 | B+ | 21,250 | |||||||||||||||
30 | Cenovus Energy Inc. | 3.800% | 9/15/23 | BBB | 27,176 | |||||||||||||||
5 | Concho Resources Inc. | 5.500% | 10/01/22 | BB+ | 4,550 | |||||||||||||||
25 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 22,000 | |||||||||||||||
20 | CAD | Paramount Resources Limited, 144A | 7.625% | 12/04/19 | BB– | 11,680 | ||||||||||||||
25 | Petrobras International Finance Company | 5.375% | 1/27/21 | BB+ | 18,625 | |||||||||||||||
85 | Transocean Inc. | 4.300% | 10/15/22 | BB+ | 45,050 | |||||||||||||||
50 | Western Refining Inc. | 6.250% | 4/01/21 | B+ | 48,000 | |||||||||||||||
45 | Woodside Finance Limited, 144A | 3.650% | 3/05/25 | BBB+ | 39,887 | |||||||||||||||
Total Oil, Gas & Consumable Fuels | 507,165 | |||||||||||||||||||
Paper & Forest Products – 1.0% | ||||||||||||||||||||
25 | Domtar Corporation | 4.400% | 4/01/22 | BBB– | 25,427 | |||||||||||||||
80 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | 78,166 | |||||||||||||||
50 | Resolute Forest Products | 5.875% | 5/15/23 | BB– | 36,375 | |||||||||||||||
Total Paper & Forest Products | 139,968 | |||||||||||||||||||
Personal Products – 0.3% | ||||||||||||||||||||
30 | International Paper Company | 8.700% | 6/15/38 | BBB | 38,602 | |||||||||||||||
Real Estate Investment Trust – 2.0% | ||||||||||||||||||||
70 | American Tower Company | 5.000% | 2/15/24 | BBB | 74,102 | |||||||||||||||
75 | Digital Realty Trust Inc. | 3.625% | 10/01/22 | BBB | 72,095 | |||||||||||||||
80 | HCP Inc. | 3.750% | 2/01/19 | BBB+ | 82,556 | |||||||||||||||
50 | Vereit Operating Partner | 4.600% | 2/06/24 | BB+ | 47,375 | |||||||||||||||
Total Real Estate Investment Trust | 276,128 | |||||||||||||||||||
Software – 2.0% | ||||||||||||||||||||
25 | BMC Software Finance Inc., 144A | 8.125% | 7/15/21 | CCC+ | 16,625 | |||||||||||||||
75 | Computer Sciences Corporation | 4.450% | 9/15/22 | BBB+ | 76,941 | |||||||||||||||
200 | SixSigma Networks Mexico SA de CV, 144A | 8.250% | 11/07/21 | B+ | 191,000 | |||||||||||||||
Total Software | 284,566 | |||||||||||||||||||
Specialty Retail – 0.2% | ||||||||||||||||||||
35 | Swiss Re Treasury US Corporation, 144A | 4.250% | 12/06/42 | AA– | 33,032 | |||||||||||||||
Telecommunication Services – 0.4% | ||||||||||||||||||||
50 | Axtel SAB de CV, 144A | 9.000% | 1/31/20 | B+ | 51,875 | |||||||||||||||
Tobacco – 0.2% | ||||||||||||||||||||
30 | Reynolds American Inc. | 3.250% | 11/01/22 | BBB– | 29,679 |
34 | Nuveen Investments |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Trading Companies & Distributors – 0.8% | ||||||||||||||||||||
$ | 100 | United Rentals North America Inc. | 7.375% | 5/15/20 | BB– | $ | 105,500 | |||||||||||||
Wireless Telecommunication Services – 2.1% | ||||||||||||||||||||
75 | Colombia Telecommunicaciones S.A. ESP, 144A | 8.500% | 9/30/65 | B+ | 64,313 | |||||||||||||||
200 | ENTEL Chile SA, 144A | 4.750% | 8/01/26 | BBB+ | 187,111 | |||||||||||||||
50 | Sprint Corporation | 7.250% | 9/15/21 | B+ | 37,250 | |||||||||||||||
Total Wireless Telecommunication Services | 288,674 | |||||||||||||||||||
Total Corporate Bonds (cost $6,585,414) | 6,155,426 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 6.8% |
| |||||||||||||||||||
Banks – 3.8% | ||||||||||||||||||||
$ | 200 | Barclays PLC | 8.250% | N/A (6) | BB+ | $ | 212,940 | |||||||||||||
50 | Citigroup Inc. | 6.250% | N/A (6) | BB+ | 51,000 | |||||||||||||||
60 | JPMorgan Chase & Company | 6.750% | N/A (6) | BBB– | 65,400 | |||||||||||||||
200 | HSBC Holdings PLC | 6.375% | N/A (6) | BBB | 197,500 | |||||||||||||||
510 | Total Banks | 526,840 | ||||||||||||||||||
Capital Markets – 1.9% | ||||||||||||||||||||
75 | Goldman Sachs Capital II | 4.000% | N/A (6) | Ba1 | 52,875 | |||||||||||||||
200 | UBS Group AG, Reg S | 7.125% | N/A (6) | BB+ | 209,435 | |||||||||||||||
275 | Total Capital Markets | 262,310 | ||||||||||||||||||
Electric Utilities – 0.7% | ||||||||||||||||||||
100 | Electricite de France, 144A | 5.250% | N/A (6) | Baa1 | 94,000 | |||||||||||||||
Insurance – 0.4% | ||||||||||||||||||||
25 | Genworth Financial Inc. | 6.150% | 11/15/66 | Ba2 | 6,750 | |||||||||||||||
50 | Prudential Financial Inc. | 5.200% | 3/15/44 | BBB+ | 48,276 | |||||||||||||||
75 | Total Insurance | 55,026 | ||||||||||||||||||
$ | 960 | Total $1,000 Par (or similar) Institutional Preferred (cost $966,209) |
| 938,176 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 7.3% | ||||||||||||||||||||
$ | 42 | Countrywide Asset Backed Certificates, Series 2007-4 A2 | 5.397% | 4/25/47 | Caa1 | $ | 45,803 | |||||||||||||
28 | Countrywide Home Loans Mortgage, Series 2005-27 | 5.500% | 12/25/35 | Caa1 | 26,563 | |||||||||||||||
145 | Fannie Mae TBA Mortgage Pool, (WI/DD) | 4.500% | TBA | Aaa | 156,555 | |||||||||||||||
315 | Fannie Mae TBA Mortgage Pool, (WI/DD) | 4.000% | TBA | Aaa | 333,242 | |||||||||||||||
400 | Fannie Mae TBA Mortgage Pool, (WI/DD) | 3.500% | TBA | Aaa | 412,558 | |||||||||||||||
40 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2013-K712 | 3.486% | 5/25/45 | Aaa | 40,134 | |||||||||||||||
$ | 970 | Total Asset-Backed and Mortgage-Backed Securities (cost $1,011,133) |
| 1,014,855 |
Nuveen Investments | 35 |
Nuveen Global Total Return Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 39.8% | ||||||||||||||||||||
Australia – 3.1% | ||||||||||||||||||||
600 | AUD | Australian Government, Reg S | 1.750% | 11/21/20 | Aaa | $ | 427,523 | |||||||||||||
Colombia – 1.1% | ||||||||||||||||||||
$ | 130 | Republic of Colombia | 8.125% | 5/21/24 | BBB | 155,870 | ||||||||||||||
Costa Rica – 1.2% | ||||||||||||||||||||
200 | Republic of Costa Rica, 144A | 7.000% | 4/04/44 | Ba1 | 166,750 | |||||||||||||||
Dominican Republic – 0.7% | ||||||||||||||||||||
100 | Dominican Republic, 144A | 5.500% | 1/27/25 | BB– | 96,250 | |||||||||||||||
Germany – 9.1% | ||||||||||||||||||||
250 | EUR | Deutschland Republic, Reg S | 0.500% | 2/15/25 | Aaa | 269,753 | ||||||||||||||
400 | EUR | Deutschland Republic, Reg S | 1.000% | 8/15/25 | Aaa | 449,358 | ||||||||||||||
400 | EUR | Deutschland Republic, Reg S | 2.500% | 8/15/46 | Aaa | 541,835 | ||||||||||||||
Total Germany | 1,260,946 | |||||||||||||||||||
Hungary – 2.5% | ||||||||||||||||||||
85,000 | HUF | Republic of Hungary, Government Bond | 5.500% | 6/24/25 | BBB– | 341,969 | ||||||||||||||
Indonesia – 1.4% | ||||||||||||||||||||
200 | Republic of Indonesia, 144A | 4.750% | 1/08/26 | Baa3 | 197,532 | |||||||||||||||
Italy – 3.9% | ||||||||||||||||||||
110 | EUR | Buoni Poliennali del Tesoro, Italian Treasury Bond | 3.750% | 9/01/24 | BBB+ | 141,823 | ||||||||||||||
350 | EUR | Buoni Poliennali del Tesoro, Italian Treasury Bond | 2.000% | 12/01/25 | BBB+ | 393,763 | ||||||||||||||
Total Italy | 535,586 | |||||||||||||||||||
Mexico – 7.5% | ||||||||||||||||||||
7,400 | MXN | Mexico Bonos de DeSarrollo | 4.750% | 6/14/18 | A3 | 431,424 | ||||||||||||||
3,000 | MXN | Mexico Bonos de DeSarrollo | 5.000% | 12/11/19 | A | 172,290 | ||||||||||||||
2,450 | MXN | Mexico Bonos de DeSarrollo | 8.000% | 12/07/23 | A | 159,111 | ||||||||||||||
2,975 | MXN | Mexico Bonos de DeSarrollo | 7.750% | 11/13/42 | A | 188,622 | ||||||||||||||
100 | EUR | United Mexican States | 4.000% | 10/15/30 | A3 | 90,714 | ||||||||||||||
Total Mexico | 1,042,161 | |||||||||||||||||||
Poland – 1.2% | ||||||||||||||||||||
250 | PLN | Republic of Poland | 5.750% | 9/23/22 | A | 75,707 | ||||||||||||||
325 | PLN | Republic of Poland | 3.250% | 7/25/25 | A | 85,214 | ||||||||||||||
Total Poland | 160,921 | |||||||||||||||||||
Portugal – 3.7% | ||||||||||||||||||||
460 | EUR | Portugal Obrigacoes do Tesouro, 144A, Reg S | 2.875% | 10/15/25 | Ba1 | 514,553 | ||||||||||||||
South Africa – 2.5% | ||||||||||||||||||||
3,800 | ZAR | Republic of South Africa | 7.250% | 1/15/20 | BBB+ | 230,220 |
36 | Nuveen Investments |
Principal Amount (000) (3) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
South Africa (continued) | ||||||||||||||||||||
1,700 | ZAR | Republic of South Africa | 10.500% | 12/21/26 | BBB+ | $ | 116,004 | |||||||||||||
Total South Africa | 346,224 | |||||||||||||||||||
Sri Lanka – 1.3% | ||||||||||||||||||||
$ | 200 | Republic of Sri Lanka, 144A | 6.850% | 11/03/25 | BB– | 188,395 | ||||||||||||||
Uruguay – 0.6% | ||||||||||||||||||||
100 | Republic of Uruguay | 5.100% | 6/18/50 | BBB | 86,251 | |||||||||||||||
Total Sovereign Debt (cost $6,274,326) | 5,520,931 | |||||||||||||||||||
Total Long-Term Investments (cost $14,900,307) | 13,711,383 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||
SHORT-TERM INVESTMENTS – 6.4% | ||||||||||||||||||||
REPURCHASE AGREEMENTS – 6.4% | ||||||||||||||||||||
$ | 887 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/15, repurchase price $887,326, collateralized by $880,000 U.S. Treasury Bonds, 3.125%, due 2/15/43, value $907,350 | 0.030% | 1/04/16 | $ | 887,323 | ||||||||||||||
Total Short-Term Investments (cost $887,323) |
| 887,323 | ||||||||||||||||||
Total Investments (cost $15,787,630) – 105.3% |
| 14,598,706 | ||||||||||||||||||
Other Assets Less Liabilities – (5.3)% (7) | (733,752 | ) | ||||||||||||||||||
Net Assets – 100% | $ | 13,864,954 |
Investments in Derivatives as of December 31, 2015
Forward Foreign Currency Exchange Contracts outstanding:
Counterparty | Currency Contracts to Deliver | Amount (Local Currency) | In Exchange For Currency | Amount (Local Currency) | Settlement Date | Unrealized Appreciation (Depreciation) (U.S. Dollars) | ||||||||||||||
Bank of America, N.A. | Hungarian Forint | 103,870,000 | U.S. Dollar | 357,224 | 1/29/16 | $ | (527 | ) | ||||||||||||
Bank of America, N.A. | Indian Rupee | 36,000,000 | U.S. Dollar | 541,761 | 2/05/16 | 244 | ||||||||||||||
Bank of America, N.A. | Mexican Peso | 11,750,000 | U.S. Dollar | 687,577 | 1/29/16 | 6,986 | ||||||||||||||
Bank of America, N.A. | Polish Zloty | 350,000 | U.S. Dollar | 90,296 | 1/29/16 | 1,120 | ||||||||||||||
Bank of America, N.A. | U.S. Dollar | 1,365 | Hungarian Forint | 396,000 | 1/29/16 | (1 | ) | |||||||||||||
Bank of America, N.A. | U.S. Dollar | 88,119 | Polish Zloty | 350,000 | 1/29/16 | 1,057 | ||||||||||||||
Bank of America, N.A. | U.S. Dollar | 534,103 | Indonesian Rupiah | 7,400,000,000 | 1/25/16 | (2,011 | ) | |||||||||||||
Bank of America, N.A. | U.S. Dollar | 539,730 | Indian Rupee | 36,000,000 | 2/05/16 | 1,786 | ||||||||||||||
Citibank, National Association | Euro | 42,000 | U.S. Dollar | 45,857 | 2/29/16 | 151 | ||||||||||||||
Citibank, National Association | Euro | 300,000 | U.S. Dollar | 328,658 | 2/29/16 | 2,189 | ||||||||||||||
Deutsche Bank AG | Australian Dollar | 337,000 | U.S. Dollar | 242,554 | 1/29/16 | (2,729 | ) | |||||||||||||
Deutsche Bank AG | U.S. Dollar | 467,233 | Pound Sterling | 307,000 | 1/22/16 | (14,631 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 187,870 | Canadian Dollar | 254,000 | 1/29/16 | (4,295 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 863,816 | Pound Sterling | 569,000 | 1/29/16 | (24,939 | ) | |||||||||||||
Morgan Stanley Capital Services LLC | Singapore Dollar | 1,000,000 | U.S. Dollar | 708,125 | 1/29/16 | 3,452 | ||||||||||||||
Morgan Stanley Capital Services LLC | South African Rand | 5,397,000 | U.S. Dollar | 351,718 | 1/29/16 | 4,247 | ||||||||||||||
Morgan Stanley Capital Services LLC | South Korean Won | 1,100,000,000 | U.S. Dollar | 932,678 | 2/16/16 | (2,272 | ) | |||||||||||||
$ | (30,173 | ) |
Nuveen Investments | 37 |
Nuveen Global Total Return Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Investments in Derivatives as of December 31, 2015 (continued)
Interest Rate Swaps outstanding:
Counterparty | Notional Amount | Fund Pay/ Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Termination Date | Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | $ | 200,000 | Receive | 3-Month USD-LIBOR-ICE | 2.078 | % | Semi- Annually | 2/19/23 | $ | (4,795 | ) | N/A | $ | (4,795 | ) | |||||||||||||||||||||
JPMorgan Chase Bank, N.A.* | 1,000,000 | Receive | 3-Month USD-LIBOR-ICE | 2.258 | Semi- Annually | 9/02/25 | (23,100 | ) | $ | (4,550 | ) | (23,100 | ) | |||||||||||||||||||||||
$ | 1,200,000 | $ | (27,895 | ) | $ | (4,550 | ) | $ | (27,895 | ) |
* | Citigroup Global Markets, Inc. is the clearing broker for this transaction. |
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (9 | ) | 3/16 | $ | (1,064,883 | ) | $ | (1,266 | ) | $ | 3,133 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(4) | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board. 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) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
(6) | Perpetual security. Maturity date is not applicable. |
(7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of the over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
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. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
(WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
AUD | Australian Dollar |
CAD | Canadian Dollar |
EUR | Euro |
HUF | Hungarian Forint |
MXN | Mexican Peso |
PLN | Polish Zloty |
ZAR | South African Rand |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
USD-LIBOR-ICE | United States Dollar-London Inter-Bank Offered Rate-Intercontinental Exchange. |
See accompanying notes to financial statements.
38 | Nuveen Investments |
Nuveen High Income Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
LONG-TERM INVESTMENTS – 94.2% | ||||||||||||||||||||
COMMON STOCKS – 0.3% | ||||||||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||
527 | Dayton Superior, Class A, (2), (3) | $ | 30,195 | |||||||||||||||||
585 | Dayton Superior, Class 1, (2), (3) | 33,550 | ||||||||||||||||||
Total Building Products | 63,745 | |||||||||||||||||||
Capital Markets – 0.1% | ||||||||||||||||||||
5,732 | Adamas Finance Asia Limited, (2) | 3,640 | ||||||||||||||||||
50,000 | Och-Ziff Capital Management Group, Class A Shares | 311,500 | ||||||||||||||||||
Total Capital Markets | 315,140 | |||||||||||||||||||
Energy Equipment & Services – 0.1% | ||||||||||||||||||||
10,000 | Patterson-UTI Energy, Inc., (4) | 150,800 | ||||||||||||||||||
Metals & Mining – 0.0% | ||||||||||||||||||||
499,059 | Northland Resources SA, (2), (3) | 100 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||
50,119 | Connacher Oil and Gas Limited, (2), (15) | 4,410 | ||||||||||||||||||
Real Estate Investment Trust – 0.1% | ||||||||||||||||||||
20,000 | STAG Industrial Inc. | 369,000 | ||||||||||||||||||
Total Common Stocks (cost $1,988,607) | 903,195 | |||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (5) | Value | ||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 1.2% |
| |||||||||||||||||||
Electric Utilities – 0.5% | ||||||||||||||||||||
50,000 | Exelon Corporation | 6.500% | BBB– | $ | 2,023,500 | |||||||||||||||
Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||
13,000 | Dynegy Inc., (4) | 5.375% | N/R | 651,690 | ||||||||||||||||
Metals & Mining – 0.1% | ||||||||||||||||||||
37,500 | ArcelorMittal | 6.000% | BB– | 244,125 | ||||||||||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||||||||||||||
40,000 | Anadarko Petroleum Corporation | 7.500% | N/R | 1,358,000 | ||||||||||||||||
Total Convertible Preferred Securities (cost $6,337,303) | 4,277,315 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon (7) | Maturity (6) | Ratings (5) | Value | |||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 6.3% (7) |
| |||||||||||||||||||
Auto Components – 1.1% | ||||||||||||||||||||
$ | 4,000 | Crowne Group LLC, Second Lien Term Loan C | 9.000% | 9/29/21 | CCC+ | $ | 3,800,000 |
Nuveen Investments | 39 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon (7) | Maturity (6) | Ratings (5) | Value | |||||||||||||||
Construction Materials – 0.6% | ||||||||||||||||||||
$ | 2,500 | Atkore International Inc. | 7.750% | 9/27/21 | CCC+ | $ | 2,190,627 | |||||||||||||
Diversified Financial Services – 0.5% | ||||||||||||||||||||
1,995 | Jill Acquisition LLC, First Lien Term Loan B | 6.000% | 5/08/22 | B | 1,955,100 | |||||||||||||||
Diversified Telecommunication Services – 0.4% | ||||||||||||||||||||
1,453 | Birch Communications Inc., First Lien Term Loan B | 7.750% | 4/19/20 | B | 1,358,671 | |||||||||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||||||||||||||
1,006 | Surgery Center Holdings Inc., Second Lien Term Loan | 8.500% | 7/24/21 | CCC+ | 945,755 | |||||||||||||||
Hotels, Restaurants & Leisure – 1.4% | ||||||||||||||||||||
988 | Amaya BV, First Lien Term Loan | 5.000% | 7/29/21 | BB | 924,993 | |||||||||||||||
656 | Amaya BV, Second Lien Term Loan | 8.000% | 7/29/22 | B+ | 656,250 | |||||||||||||||
1,891 | Caesars Entertainment Corporation, Term Loan B5, (8) | 10.000% | 1/29/18 | D | 1,644,783 | |||||||||||||||
1,955 | Rock Ohio Caesar LLC, Term Loan B | 5.000% | 3/29/19 | B+ | 1,818,150 | |||||||||||||||
5,490 | Total Hotels, Restaurants & Leisure | 5,044,176 | ||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.4% | ||||||||||||||||||||
130 | Empire Generating Company LLC, Term Loan C | 5.250% | 3/13/21 | B+ | 107,608 | |||||||||||||||
1,778 | Empire Generating Company LLC | 5.250% | 3/13/21 | B+ | 1,467,206 | |||||||||||||||
1,908 | Total Independent Power & Renewable Electricity Producers | 1,574,814 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.5% | ||||||||||||||||||||
2,942 | Arch Coal Inc., Term Loan B | 6.250% | 5/16/18 | Caa1 | 1,358,120 | |||||||||||||||
2,493 | Fieldwood Energy LLC, Second Lien Term Loan | 8.375% | 9/30/20 | B– | 392,586 | |||||||||||||||
2,000 | Samson Investment Company Second Lien Term Loan, (8) | 5.000% | 9/25/18 | N/R | 100,000 | |||||||||||||||
7,435 | Total Oil, Gas & Consumable Fuels | 1,850,706 | ||||||||||||||||||
Professional Services – 0.8% | ||||||||||||||||||||
2,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 6.750% | 2/28/22 | CCC+ | 1,847,500 | |||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 6.750% | 2/28/22 | CCC+ | 923,750 | |||||||||||||||
3,000 | Total Professional Services | 2,771,250 | ||||||||||||||||||
Software – 0.3% | ||||||||||||||||||||
1,000 | Deltek Incorporated, Second Lien Term Loan | 9.500% | 6/19/23 | CCC+ | 997,500 | |||||||||||||||
$ | 29,787 | Total Variable Rate Senior Loan Interests (cost $28,263,634) | 22,488,599 | |||||||||||||||||
Shares | Description (1) | Coupon | Ratings (5) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 6.1% |
| |||||||||||||||||||
Banks – 1.4% | ||||||||||||||||||||
32,380 | Bank of America Corporation | 4.000% | BB+ | $ | 695,522 | |||||||||||||||
109,536 | HSBC USA Inc. | 1.068% | BBB+ | 2,418,555 | ||||||||||||||||
75,000 | RBS Capital Funding Trust V | 5.900% | BB– | 1,840,500 | ||||||||||||||||
Total Banks | 4,954,577 |
40 | Nuveen Investments |
Shares | Description (1) | Coupon | Ratings (5) | Value | ||||||||||||||||
Capital Markets – 0.9% | ||||||||||||||||||||
152,330 | Morgan Stanley | 4.000% | Ba1 | $ | 3,166,941 | |||||||||||||||
Food Products – 0.3% | ||||||||||||||||||||
41,734 | CHS Inc. | 6.750% | N/R | 1,118,889 | ||||||||||||||||
Household Durables – 0.1% | ||||||||||||||||||||
63,610 | Hovnanian Enterprises Incorporated | 7.625% | Caa3 | 284,973 | ||||||||||||||||
Insurance – 0.4% | ||||||||||||||||||||
60,000 | AmTrust Financial Services Inc., (4) | 7.250% | N/R | 1,524,000 | ||||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
27,000 | Dominion Resources Inc. | 6.375% | Baa3 | 1,298,160 | ||||||||||||||||
Real Estate Investment Trust – 2.6% | ||||||||||||||||||||
50,960 | Colony Financial Inc. | 7.125% | N/R | 1,116,534 | ||||||||||||||||
60,000 | Colony Financial Inc. | 7.500% | N/R | 1,467,600 | ||||||||||||||||
52,558 | Coresite Realty Corporation | 7.250% | N/R | 1,392,261 | ||||||||||||||||
30,000 | General Growth Properties | 6.375% | N/R | 744,000 | ||||||||||||||||
70,000 | Northstar Realty Finance Corporation | 8.750% | N/R | 1,648,500 | ||||||||||||||||
72,767 | Northstar Realty Finance Corporation | 8.500% | N/R | 1,673,641 | ||||||||||||||||
47,400 | Urstadt Biddle Properties, (15) | 6.750% | N/R | 1,243,302 | ||||||||||||||||
Total Real Estate Investment Trust | 9,285,838 | |||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $21,772,683) | 21,633,378 | |||||||||||||||||||
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
CORPORATE BONDS – 73.8% | ||||||||||||||||||||
Aerospace & Defense – 1.5% | ||||||||||||||||||||
$ | 2,200 | Bombardier Inc., 144A | 6.000% | 10/15/22 | B | $ | 1,542,200 | |||||||||||||
1,500 | StandardAero Aviation Holdings Inc., 144A | 10.000% | 7/15/23 | CCC | 1,488,750 | |||||||||||||||
2,867 | Triumph Group Inc. | 4.875% | 4/01/21 | Ba3 | 2,309,727 | |||||||||||||||
Total Aerospace & Defense | 5,340,677 | |||||||||||||||||||
Air Freight & Logistics – 0.5% | ||||||||||||||||||||
1,900 | EUR | XPO Logistics, Inc., 144A | 5.750% | 6/15/21 | B2 | 1,925,046 | ||||||||||||||
Airlines – 0.7% | ||||||||||||||||||||
175 | American Airlines Group Inc., 144A | 4.625% | 3/01/20 | BB– | 166,688 | |||||||||||||||
3,000 | VistaJet Malta Finance PLC, 144A, (4) | 7.750% | 6/01/20 | B | 2,250,000 | |||||||||||||||
Total Airlines | 2,416,688 | |||||||||||||||||||
Auto Components – 2.1% | ||||||||||||||||||||
1,475 | Jac Holding Corporation, 144A, (4) | 11.500% | 10/01/19 | B | 1,382,813 | |||||||||||||||
1,560 | Midas Intermediate Holdco II LLC / Midas Intermediate Holdco II Finance Inc., 144A | 7.875% | 10/01/22 | CCC+ | 1,396,200 | |||||||||||||||
2,000 | MPG Holdco I Inc., (4) | 7.375% | 10/15/22 | B+ | 2,020,000 |
Nuveen Investments | 41 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Auto Components (continued) | ||||||||||||||||||||
$ | 2,950 | Tupy S/A, 144A | 6.625% | 7/17/24 | BB | $ | 2,573,875 | |||||||||||||
Total Auto Components | 7,372,888 | |||||||||||||||||||
Banks – 0.6% | ||||||||||||||||||||
2,450 | Popular Inc. | 7.000% | 7/01/19 | BB– | 2,290,750 | |||||||||||||||
Building Products – 3.3% | ||||||||||||||||||||
1,450 | Associated Materials Inc. | 9.125% | 11/01/17 | B– | 1,000,500 | |||||||||||||||
2,000 | Builders FirstSource Inc., 144A | 10.750% | 8/15/23 | B– | 1,985,000 | |||||||||||||||
2,000 | Corporativo Javer S.A. de C.V, 144A | 9.875% | 4/06/21 | B+ | 2,050,000 | |||||||||||||||
2,750 | NCI Building Systems, Inc., 144A | 8.250% | 1/15/23 | B+ | 2,887,500 | |||||||||||||||
3,000 | NWH Escrow Corporation, 144A | 7.500% | 8/01/21 | B | 2,400,000 | |||||||||||||||
1,000 | Odebrecht Finance Limited, 144A | 4.375% | 4/25/25 | BBB– | 520,000 | |||||||||||||||
1,800 | Odebrecht Finance Limited, 144A | 7.125% | 6/26/42 | BBB– | 913,500 | |||||||||||||||
Total Building Products | 11,756,500 | |||||||||||||||||||
Chemicals – 3.3% | ||||||||||||||||||||
2,000 | Chemours Co, 144A | 6.625% | 5/15/23 | BB– | 1,400,000 | |||||||||||||||
2,000 | Hexion Inc. | 10.000% | 4/15/20 | B3 | 1,650,000 | |||||||||||||||
1,500 | Hexion US Finance Corporation | 8.875% | 2/01/18 | CCC | 1,057,500 | |||||||||||||||
1,000 | Kissner Milling Company Limited, 144A | 7.250% | 6/01/19 | B | 937,500 | |||||||||||||||
400 | Koppers Inc. | 7.875% | 12/01/19 | BB– | 395,000 | |||||||||||||||
3,525 | Momentive Performance Materials Inc., (3), (8) | 8.875% | 10/15/20 | N/R | — | |||||||||||||||
3,525 | Momentive Performance Materials Inc. | 3.880% | 10/24/21 | B | 2,432,250 | |||||||||||||||
2,000 | Platform Specialty Products Corporation, 144A | 10.375% | 5/01/21 | B+ | 1,995,000 | |||||||||||||||
125 | PolyOne Corporation | 5.250% | 3/15/23 | BB– | 121,875 | |||||||||||||||
2,950 | Tronox Finance LLC | 6.375% | 8/15/20 | B+ | 1,775,310 | |||||||||||||||
Total Chemicals | 11,764,435 | |||||||||||||||||||
Commercial Services & Supplies – 0.6% | ||||||||||||||||||||
2,420 | CAD | GFL Environmental Corporation, 144A | 7.500% | 6/18/18 | B | 1,713,955 | ||||||||||||||
1,160 | EUR | Waste Italia SPA, 144A | 10.500% | 11/15/19 | Caa2 | 479,672 | ||||||||||||||
Total Commercial Services & Supplies | 2,193,627 | |||||||||||||||||||
Communications Equipment – 0.5% | ||||||||||||||||||||
2,000 | Broadview Networks Holdings Inc. | 10.500% | 11/15/17 | N/R | 1,895,000 | |||||||||||||||
Construction & Engineering – 1.1% | ||||||||||||||||||||
1,500 | Boart Longyear Management Pty Ltd, 144A | 7.000% | 4/01/21 | CCC+ | 600,000 | |||||||||||||||
2,358 | Michael Baker Holdings LLC Finance Corporation, 144A | 8.875% | 4/15/19 | B– | 1,650,797 | |||||||||||||||
15,000 | NOK | VV Holding AS, 144A | 6.360% | 7/10/19 | N/R | 1,626,866 | ||||||||||||||
Total Construction & Engineering | 3,877,663 | |||||||||||||||||||
Construction Materials – 2.2% | ||||||||||||||||||||
2,000 | Cemex Finance LLC, 144A | 9.375% | 10/12/22 | BB– | 2,105,000 |
42 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Construction Materials (continued) | ||||||||||||||||||||
$ | 2,500 | Norbord Inc., 144A | 5.375% | 12/01/20 | Ba2 | $ | 2,500,000 | |||||||||||||
3,180 | Reliance Intermediate Holdings LP, 144A | 6.500% | 4/01/23 | BB– | 3,307,200 | |||||||||||||||
Total Construction Materials | 7,912,200 | |||||||||||||||||||
Consumer Finance – 1.4% | ||||||||||||||||||||
2,350 | Constellis Holdings LLC / Constellis Finance Corporation, 144A | 9.750% | 5/15/20 | B | 1,929,938 | |||||||||||||||
1,945 | Covenant Surgical Partners Inc., 144A | 8.750% | 8/01/19 | B– | 1,896,375 | |||||||||||||||
1,500 | Enova International, Inc. | 9.750% | 6/01/21 | B | 1,080,000 | |||||||||||||||
Total Consumer Finance | 4,906,313 | |||||||||||||||||||
Containers & Packaging – 2.1% | ||||||||||||||||||||
3,219 | Ardagh Finance Holdings SA, 144A | 8.625% | 6/15/19 | CCC+ | 3,173,049 | |||||||||||||||
882 | Ardagh Packaging Finance / MP HD USA, 144A | 7.000% | 11/15/20 | Caa1 | 866,912 | |||||||||||||||
1,750 | Coveris Holdings SA, 144A | 7.875% | 11/01/19 | B– | 1,526,875 | |||||||||||||||
2,000 | PaperWorks Industries Inc., 144A | 9.500% | 8/15/19 | B– | 1,830,000 | |||||||||||||||
Total Containers & Packaging | 7,396,836 | |||||||||||||||||||
Diversified Consumer Services – 0.9% | ||||||||||||||||||||
2,180 | Gibson Brands Inc., 144A | 8.875% | 8/01/18 | B– | 1,264,400 | |||||||||||||||
3,185 | Jones Group Inc. | 6.125% | 11/15/34 | CCC– | 445,900 | |||||||||||||||
1,000 | GBP | Twinkle Pizza Holdings PLC, 144A | 8.625% | 8/01/22 | CCC+ | 1,530,495 | ||||||||||||||
Total Diversified Consumer Services | 3,240,795 | |||||||||||||||||||
Diversified Financial Services – 1.6% | ||||||||||||||||||||
1,750 | CNG Holdings Inc., 144A | 9.375% | 5/15/20 | B– | 735,000 | |||||||||||||||
2,180 | James Hardie International Finance Limited, 144A | 5.875% | 2/15/23 | BBB– | 2,223,600 | |||||||||||||||
1,500 | Nationstar Mortgage LLC Capital Corporation | 7.875% | 10/01/20 | B+ | 1,435,500 | |||||||||||||||
1,500 | NewStar Financial, Inc. | 7.250% | 5/01/20 | BB– | 1,455,000 | |||||||||||||||
Total Diversified Financial Services | 5,849,100 | |||||||||||||||||||
Diversified Telecommunication Services – 2.8% | ||||||||||||||||||||
1,225 | CenturyLink Inc. | 7.650% | 3/15/42 | BB+ | 937,125 | |||||||||||||||
1,950 | Consolidated Communications Finance Company | 6.500% | 10/01/22 | B– | 1,638,000 | |||||||||||||||
1,000 | Frontier Communications Corporation, 144A | 11.000% | 9/15/25 | BB | 990,000 | |||||||||||||||
1,000 | IntelSat Jackson Holdings | 7.250% | 4/01/19 | B+ | 917,500 | |||||||||||||||
1,500 | IntelSat Jackson Holdings | 6.625% | 12/15/22 | CCC+ | 956,250 | |||||||||||||||
2,800 | Neptune Finco Corporation, 144A | 10.875% | 10/15/25 | B2 | 2,933,000 | |||||||||||||||
2,000 | Windstream Corporation | 7.750% | 10/01/21 | BB | 1,573,750 | |||||||||||||||
Total Diversified Telecommunication Services | 9,945,625 | |||||||||||||||||||
Electric Utilities – 1.5% | ||||||||||||||||||||
1,587 | Energy Future Intermediate Holding Company LLC, 144A, (8) | 11.750% | 3/01/22 | N/R | 1,689,998 | |||||||||||||||
2,435 | Intergen NV, 144A, (4) | 7.000% | 6/30/23 | B+ | 1,929,738 | |||||||||||||||
2,000 | PPL Energy Supply LLC, 144A | 6.500% | 6/01/25 | Ba3 | 1,320,000 |
Nuveen Investments | 43 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Electric Utilities (continued) | ||||||||||||||||||||
$ | 1,000 | Texas Competitive Electric Holdings, 144A, (8) | 11.500% | 10/01/20 | N/R | $ | 332,500 | |||||||||||||
Total Electric Utilities | 5,272,236 | |||||||||||||||||||
Energy Equipment & Services – 1.0% | ||||||||||||||||||||
1,950 | Basic Energy Services, Inc. | 7.750% | 2/15/19 | B– | 643,500 | |||||||||||||||
700 | Calfrac Holdings LP, 144A | 7.500% | 12/01/20 | B | 278,250 | |||||||||||||||
750 | McDermott International Inc., 144A | 8.000% | 5/01/21 | BB– | 596,250 | |||||||||||||||
1,000 | Murray Energy Corporation, 144A | 11.250% | 4/15/21 | CCC+ | 182,500 | |||||||||||||||
1,670 | Pacific Drilling V Limited, 144A | 7.250% | 12/01/17 | B | 860,050 | |||||||||||||||
1,000 | SAExploration Holdings Inc. | 10.000% | 7/15/19 | B– | 590,000 | |||||||||||||||
1,500 | Seventy Seven Energy Inc. | 6.625% | 11/15/19 | CCC+ | 525,000 | |||||||||||||||
Total Energy Equipment & Services | 3,675,550 | |||||||||||||||||||
Food & Staples Retailing – 2.0% | ||||||||||||||||||||
2,500 | Kehe Distributors LLC Finance, 144A | 7.625% | 8/15/21 | B– | 2,543,750 | |||||||||||||||
2,750 | Supervalu Inc., (4) | 7.750% | 11/15/22 | B | 2,516,250 | |||||||||||||||
2,000 | Tops Holding LLC / Tops Markets II Corporation, 144A, (4) | 8.000% | 6/15/22 | B | 1,970,000 | |||||||||||||||
Total Food & Staples Retailing | 7,030,000 | |||||||||||||||||||
Food Products – 1.6% | ||||||||||||||||||||
2,050 | JBS Investments GmbH, 144A | 7.250% | 4/03/24 | BB+ | 1,860,375 | |||||||||||||||
2,200 | Marfrig Holding Europe BV, 144A | 8.375% | 5/09/18 | B+ | 2,112,000 | |||||||||||||||
2,000 | Southern States Cooperative Inc., 144A | 10.000% | 8/15/21 | B– | 1,730,000 | |||||||||||||||
Total Food Products | 5,702,375 | |||||||||||||||||||
Gas Utilities – 0.5% | ||||||||||||||||||||
2,000 | Ferrellgas LP | 6.750% | 1/15/22 | B+ | 1,685,000 | |||||||||||||||
Health Care Equipment & Supplies – 1.1% | ||||||||||||||||||||
2,375 | GreatBatch Limited, 144A | 9.125% | 11/01/23 | B– | 2,351,250 | |||||||||||||||
1,800 | Tenet Healthcare Corporation | 6.875% | 11/15/31 | B3 | 1,458,000 | |||||||||||||||
Total Health Care Equipment & Supplies | 3,809,250 | |||||||||||||||||||
Health Care Providers & Services – 1.9% | ||||||||||||||||||||
2,000 | Community Health Systems, Inc., (4) | 6.875% | 2/01/22 | B+ | 1,897,500 | |||||||||||||||
2,000 | Kindred Healthcare Inc. | 8.750% | 1/15/23 | B2 | 1,840,000 | |||||||||||||||
2,000 | Opal Acquisition Inc., 144A | 8.875% | 12/15/21 | CCC | 1,660,000 | |||||||||||||||
1,750 | Select Medical Corporation | 6.375% | 6/01/21 | B– | 1,531,250 | |||||||||||||||
Total Health Care Providers & Services | 6,928,750 | |||||||||||||||||||
Hotels, Restaurants & Leisure – 2.7% | ||||||||||||||||||||
1,500 | Caesars Entertainment Resort Properties LLC, (4) | 8.000% | 10/01/20 | B+ | 1,425,000 | |||||||||||||||
2,000 | Caesars Growth Properties Holdings LLC / Caesars Growth Properties Finance Inc., (4) | 9.375% | 5/01/22 | B– | 1,640,000 | |||||||||||||||
1,600 | CAD | River Cree Enterprises LP, 144A | 11.000% | 1/20/21 | B– | 1,150,538 |
44 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Hotels, Restaurants & Leisure (continued) | ||||||||||||||||||||
$ | 2,500 | Roc Finance LLC and Roc Finance 1 Corporation, 144A | 12.125% | 9/01/18 | B– | $ | 2,612,500 | |||||||||||||
3,285 | Scientific Games International Inc. | 6.250% | 9/01/20 | B– | 1,543,950 | |||||||||||||||
1,600 | Wynn Macau Limited, 144A, (4) | 5.250% | 10/15/21 | Ba2 | 1,408,000 | |||||||||||||||
Total Hotels, Restaurants & Leisure | 9,779,988 | |||||||||||||||||||
Household Durables – 1.6% | ||||||||||||||||||||
2,000 | K. Hovnanian Enterprises Inc. | 5.000% | 11/01/21 | B1 | 1,340,000 | |||||||||||||||
2,500 | KB Home | 7.625% | 5/15/23 | B+ | 2,468,750 | |||||||||||||||
1,850 | RSI Home Products Incorporated, 144A | 6.500% | 3/15/23 | B+ | 1,905,500 | |||||||||||||||
Total Household Durables | 5,714,250 | |||||||||||||||||||
Independent Power & Renewable Electricity Producers – 1.3% | ||||||||||||||||||||
2,000 | Dynegy Inc., (4) | 6.750% | 11/01/19 | B+ | 1,880,000 | |||||||||||||||
1,300 | GenOn Energy Inc. | 9.875% | 10/15/20 | B– | 962,000 | |||||||||||||||
2,300 | NRG Energy Inc. | 6.625% | 3/15/23 | BB– | 1,995,250 | |||||||||||||||
Total Independent Power & Renewable Electricity Producers | 4,837,250 | |||||||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
2,500 | Techniplas, LLC, 144A | 10.000% | 5/01/20 | B | 1,775,000 | |||||||||||||||
Insurance – 0.5% | ||||||||||||||||||||
2,570 | Genworth Holdings Inc. | 4.800% | 2/15/24 | Ba1 | 1,734,750 | |||||||||||||||
Internet Software & Services – 0.1% | ||||||||||||||||||||
500 | Ensemble S Merger Sub Inc., 144A | 9.000% | 9/30/23 | CCC+ | 483,125 | |||||||||||||||
Leisure Products – 0.4% | ||||||||||||||||||||
2,000 | CAD | Gateway Casinos & Entertainment Limited, 144A | 8.500% | 11/26/20 | B+ | 1,387,584 | ||||||||||||||
Machinery – 0.6% | ||||||||||||||||||||
2,230 | CTP Transportation Products LLC-Finance Inc., 144A | 8.250% | 12/15/19 | B | 2,324,775 | |||||||||||||||
Marine – 2.8% | ||||||||||||||||||||
3,000 | Eletson Holdings Inc., 144A | 9.625% | 1/15/22 | B+ | 2,670,000 | |||||||||||||||
1,750 | Global Ship Lease Inc., 144A | 10.000% | 4/01/19 | B | 1,583,750 | |||||||||||||||
2,900 | Navios Maritime Acquisition Corporation, 144A | 8.125% | 11/15/21 | BB– | 2,530,250 | |||||||||||||||
1,786 | Navios South American Logisitics Inc., Finance US Inc., 144A | 7.250% | 5/01/22 | B | 1,169,830 | |||||||||||||||
2,200 | Topaz Marine SA, 144A | 8.625% | 11/01/18 | B– | 2,001,340 | |||||||||||||||
Total Marine | 9,955,170 | |||||||||||||||||||
Media – 4.0% | ||||||||||||||||||||
1,850 | Charter Communications, CCO Holdings LLC, (4) | 5.125% | 2/15/23 | BB– | 1,852,313 | |||||||||||||||
2,650 | Clear Channel Communications, Inc. | 9.000% | 12/15/19 | CCC+ | 1,961,000 | |||||||||||||||
1,000 | Clear Channel Communications, Inc. | 11.250% | 3/01/21 | CCC+ | 700,000 | |||||||||||||||
750 | Lee Enterprises Inc., 144A | 9.500% | 3/15/22 | B2 | 690,000 | |||||||||||||||
1,500 | McClatchy Company | 9.000% | 12/15/22 | B1 | 1,335,000 |
Nuveen Investments | 45 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Media (continued) | ||||||||||||||||||||
$ | 1,000 | Midcontinent Communications Finance Company, 144A | 6.250% | 8/01/21 | B | $ | 1,010,000 | |||||||||||||
2,500 | Radio One Inc., 144A | 9.250% | 2/15/20 | CCC | 1,975,000 | |||||||||||||||
2,500 | SiTV Inc., 144A | 10.375% | 7/01/19 | B– | 2,000,000 | |||||||||||||||
180 | Tribune Media Company, 144A, (4) | 5.875% | 7/15/22 | BB– | 180,000 | |||||||||||||||
3,150 | CAD | Videotron Limited, 144A | 5.625% | 6/15/25 | BB | 2,288,024 | ||||||||||||||
500 | VTR Finance BV, 144A | 6.875% | 1/15/24 | B+ | 460,000 | |||||||||||||||
Total Media | 14,451,337 | |||||||||||||||||||
Metals & Mining – 3.5% | ||||||||||||||||||||
2,000 | AK Steel Corporation | 7.625% | 10/01/21 | CCC+ | 800,000 | |||||||||||||||
1,300 | Anglogold Holdings PLC | 5.125% | 8/01/22 | Baa3 | 1,033,500 | |||||||||||||||
2,790 | Century Aluminum Company, 144A, (4) | 7.500% | 6/01/21 | BB– | 1,869,300 | |||||||||||||||
2,000 | Cliffs Natural Resources Inc. | 4.200% | 1/15/18 | B | 530,000 | |||||||||||||||
283 | Coeur d’Alene Mines Corporation | 7.875% | 2/01/21 | B | 169,093 | |||||||||||||||
2,000 | EUR | Constellium N.V, 144A | 4.625% | 5/15/21 | B | 1,666,840 | ||||||||||||||
2,349 | First Quantum Minerals Limited, 144A | 6.750% | 2/15/20 | BB– | 1,515,105 | |||||||||||||||
135 | Hudbay Minerals, Inc. | 9.500% | 10/01/20 | B | 98,888 | |||||||||||||||
700 | Lundin Mining Corporation, 144A | 7.500% | 11/01/20 | Ba2 | 656,250 | |||||||||||||||
3,504 | Northland Resources AB, 144A, Reg S | 15.000% | 7/15/19 | N/R | 35,044 | |||||||||||||||
1,583 | Northland Resources AB, 144A, Reg S, (8) | 4.000% | 10/15/20 | N/R | 3,166 | |||||||||||||||
2,000 | Novellis Inc. | 8.750% | 12/15/20 | B | 1,835,000 | |||||||||||||||
2,000 | Teck Resources Limited | 4.750% | 1/15/22 | BB+ | 970,000 | |||||||||||||||
2,000 | Westmoreland Coal Co, 144A | 8.750% | 1/01/22 | B | 1,230,000 | |||||||||||||||
Total Metals & Mining | 12,412,186 | |||||||||||||||||||
Multiline Retail – 0.6% | ||||||||||||||||||||
3,048 | J.C. Penney Company Inc., (4) | 7.400% | 4/01/37 | B– | 2,011,680 | |||||||||||||||
Oil, Gas & Consumable Fuels – 8.9% | ||||||||||||||||||||
3,000 | American Eagle Energy Corporation, 144A, (8) | 11.000% | 9/01/19 | N/R | 210,000 | |||||||||||||||
1,900 | Armstrong Energy Inc. | 11.750% | 12/15/19 | B– | 779,000 | |||||||||||||||
3,000 | Atlas Energy Holdings Operating Company | 9.250% | 8/15/21 | CCC | 615,000 | |||||||||||||||
2,600 | CAD | Baytex Energy Corporation | 6.625% | 7/19/22 | BB | 1,434,557 | ||||||||||||||
2,750 | Bellatrix Exploration Limited, 144A | 8.500% | 5/15/20 | B3 | 1,952,500 | |||||||||||||||
2,000 | Calumet Specialty Products | 7.625% | 1/15/22 | B+ | 1,700,000 | |||||||||||||||
2,000 | CGG SA | 6.875% | 1/15/22 | CCC+ | 820,000 | |||||||||||||||
1,034 | Chesapeake Energy Corporation, 144A | 8.000% | 12/15/22 | BB– | 506,660 | |||||||||||||||
1,350 | Cloud Peak Energy Resources LLC and Cloud Peak Energy Finance Corporation | 8.500% | 12/15/19 | BB– | 675,000 | |||||||||||||||
785 | Continental Resources Inc. | 7.375% | 10/01/20 | BBB– | 722,200 | |||||||||||||||
2,275 | Crestwood Midstream Partners LP | 6.125% | 3/01/22 | BB | 1,581,125 |
46 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 800 | Denbury Resources Inc. | 5.500% | 5/01/22 | B1 | $ | 265,584 | |||||||||||||
1,200 | EnQuest PLC, 144A | 7.000% | 4/15/22 | B– | 418,500 | |||||||||||||||
2,210 | EV Energy Partners LP / EV Energy Finance Corporation | 8.000% | 4/15/19 | B– | 1,105,000 | |||||||||||||||
1,300 | Genesis Energy LP | 5.750% | 2/15/21 | B+ | 1,098,500 | |||||||||||||||
2,000 | Global Partners LP/GLP Finance | 7.000% | 6/15/23 | B+ | 1,640,000 | |||||||||||||||
3,000 | Golden Close Maritime Corporation Limited, 144A, Reg S | 9.000% | 10/24/19 | N/R | 1,500,000 | |||||||||||||||
390 | Halcon Resources Corporation, 144A, (4) | 12.000% | 2/15/22 | CCC+ | 257,400 | |||||||||||||||
1,648 | Key Energy Services Inc. | 6.750% | 3/01/21 | CCC+ | 414,060 | |||||||||||||||
2,000 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 1,760,000 | |||||||||||||||
3,265 | MEG Energy Corporation, 144A | 6.375% | 1/30/23 | BB– | 2,236,525 | |||||||||||||||
1,950 | Memorial Production Partners LP Finance Corporation | 7.625% | 5/01/21 | CCC+ | 585,000 | |||||||||||||||
2,921 | Metro Exploration Holding Inc., (8) | 11.500% | 2/14/16 | N/R | 116,844 | |||||||||||||||
1,725 | Oasis Petroleum Inc. | 6.875% | 3/15/22 | B+ | 1,104,000 | |||||||||||||||
1,250 | CAD | Paramount Resources Limited, 144A | 7.625% | 12/04/19 | BB– | 729,999 | ||||||||||||||
2,500 | Peabody Energy Corporation | 6.500% | 9/15/20 | B– | 343,750 | |||||||||||||||
750 | Penn Virginia Corporation | 8.500% | 5/01/20 | CC | 118,125 | |||||||||||||||
352 | Sabine Pass LNG LP | 7.500% | 11/30/16 | BB+ | 350,240 | |||||||||||||||
1,500 | Sandridge Energy Inc., 144A | 8.750% | 6/01/20 | B | 455,625 | |||||||||||||||
1,500 | Seven Generations Energy Limited, 144A | 6.750% | 5/01/23 | B2 | 1,260,000 | |||||||||||||||
1,100 | Summit Midstream Holdings LLC Finance | 7.500% | 7/01/21 | B | 935,000 | |||||||||||||||
2,030 | Talos Production LLC, 144A | 9.750% | 2/15/18 | B– | 872,900 | |||||||||||||||
1,750 | Teekay Corporation, 144A | 8.500% | 1/15/20 | B+ | 1,181,250 | |||||||||||||||
1,620 | Vanguard Natural Resources Finance | 7.875% | 4/01/20 | B | 429,300 | |||||||||||||||
2,000 | WPX Energy Inc. | 7.500% | 8/01/20 | Ba1 | 1,620,000 | |||||||||||||||
Total Oil, Gas & Consumable Fuels | 31,793,644 | |||||||||||||||||||
Paper & Forest Products – 1.9% | ||||||||||||||||||||
1,000 | Mercer International Inc. | 7.750% | 12/01/22 | B+ | 1,010,000 | |||||||||||||||
4,550 | Millar Western Forest Products Ltd | 8.500% | 4/01/21 | B– | 2,366,000 | |||||||||||||||
2,675 | Resolute Forest Products | 5.875% | 5/15/23 | BB– | 1,946,063 | |||||||||||||||
1,500 | Tembec Industries, Inc., 144A | 9.000% | 12/15/19 | B– | 975,000 | |||||||||||||||
1,950 | Verso Paper Holdings LLC, (8) | 11.750% | 1/15/19 | Caa2 | 341,250 | |||||||||||||||
Total Paper & Forest Products | 6,638,313 | |||||||||||||||||||
Pharmaceuticals – 0.8% | ||||||||||||||||||||
2,900 | VP Escrow Corporation, 144A | 6.375% | 10/15/20 | B1 | 2,798,500 | |||||||||||||||
Professional Services – 0.7% | ||||||||||||||||||||
2,625 | CEB Inc., 144A | 5.625% | 6/15/23 | BB– | 2,605,313 | |||||||||||||||
Real Estate Management & Development – 1.0% | ||||||||||||||||||||
3,000 | Hunt Companies Inc., 144A | 9.625% | 3/01/21 | N/R | 2,715,000 |
Nuveen Investments | 47 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Real Estate Management & Development (continued) | ||||||||||||||||||||
$ | 945 | Mattamy Group Corporation, 144A, (4) | 6.500% | 11/15/20 | BB | $ | 897,750 | |||||||||||||
Total Real Estate Management & Development | 3,612,750 | |||||||||||||||||||
Road & Rail – 0.4% | ||||||||||||||||||||
2,231 | JCH Parent Inc., 144A | 10.500% | 3/15/19 | CCC– | 1,361,110 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 0.4% | ||||||||||||||||||||
2,200 | Advanced Micro Devices, Inc. | 7.000% | 7/01/24 | B– | 1,430,000 | |||||||||||||||
Software – 0.5% | ||||||||||||||||||||
2,000 | BCP Singapore VI Cayman Financing Company Limited, 144A | 8.000% | 4/15/21 | BB– | 1,587,500 | |||||||||||||||
180 | SS&C Technologies Holdings, Inc., 144A | 5.875% | 7/15/23 | B+ | 185,850 | |||||||||||||||
Total Software | 1,773,350 | |||||||||||||||||||
Specialty Retail – 1.6% | ||||||||||||||||||||
1,500 | L Brands, Inc., 144A, (4) | 6.875% | 11/01/35 | BB+ | 1,541,250 | |||||||||||||||
2,852 | Sally Holdings Inc. | 5.750% | 6/01/22 | BB+ | 2,950,784 | |||||||||||||||
1,500 | The Men’s Warehouse Inc. | 7.000% | 7/01/22 | B2 | 1,065,000 | |||||||||||||||
Total Specialty Retail | 5,557,034 | |||||||||||||||||||
Trading Companies & Distributors – 0.5% | ||||||||||||||||||||
2,000 | Avation Capital SA, 144A | 7.500% | 5/27/20 | B+ | 1,860,000 | |||||||||||||||
Transportation Infrastructure – 0.9% | ||||||||||||||||||||
3,000 | Navigator Holdings Limited, 144A, Reg S | 9.000% | 12/18/17 | N/R | 3,060,900 | |||||||||||||||
Utilities – 0.0% | ||||||||||||||||||||
121 | Midwest Generation LLC | 8.560% | 1/02/16 | N/R | 120,354 | |||||||||||||||
Wireless Telecommunication Services – 2.8% | ||||||||||||||||||||
1,900 | Colombia Telecommunicaciones S.A. ESP, 144A | 8.500% | 9/30/65 | B+ | 1,629,250 | |||||||||||||||
2,250 | Digicel Group, Limited, 144A | 8.250% | 9/30/20 | B– | 1,856,250 | |||||||||||||||
2,256 | FairPoint Communications Inc., 144A | 8.750% | 8/15/19 | B | 2,221,175 | |||||||||||||||
3,050 | Sprint Corporation | 7.250% | 9/15/21 | B+ | 2,272,250 | |||||||||||||||
2,000 | T-Mobile USA Inc. | 6.625% | 4/01/23 | BB | 2,040,000 | |||||||||||||||
11,456 | Total Wireless Telecommunication Services | 10,018,925 | ||||||||||||||||||
Total Corporate Bonds (cost $340,399,127) | 263,684,592 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
CONVERTIBLE BONDS – 0.5% | ||||||||||||||||||||
Metals & Mining – 0.0% | ||||||||||||||||||||
$ | 1,500 | Great Western Mineral Group, Reg S, (8) | 8.000% | 4/06/17 | N/R | $ | 15,000 | |||||||||||||
Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||
1,000 | NRG Yield Inc, 144A | 3.250% | 6/01/20 | N/R | 839,375 |
48 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels – 0.3% | ||||||||||||||||||||
$ | 1,465 | Alpha Natural Resources Inc., (8) | 4.875% | 12/15/20 | D | $ | 1,831 | |||||||||||||
1,300 | DCP Midstream LLC, 144A | 5.850% | 5/21/43 | BB– | 994,500 | |||||||||||||||
2,765 | Total Oil, Gas & Consumable Fuels | 996,331 | ||||||||||||||||||
$ | 5,265 | Total Convertible Bonds (cost $4,681,020) | 1,850,706 | |||||||||||||||||
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 3.2% |
| |||||||||||||||||||
Banks – 2.2% | ||||||||||||||||||||
$ | 1,903 | Lloyd’s Banking Group PLC, (4) | 7.500% | N/A (10) | BB+ | $ | 2,026,695 | |||||||||||||
2,000 | Societe Generale, 144A, (4) | 7.875% | N/A (10) | BB+ | 1,992,600 | |||||||||||||||
2,000 | SunTrust Capital Trust I, Series A | 4.000% | N/A (10) | Baa3 | 1,510,000 | |||||||||||||||
2,600 | UniCredit SpA, Reg S | 8.000% | N/A (10) | BB– | 2,455,632 | |||||||||||||||
Total Banks | 7,984,927 | |||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||
2,840 | Goldman Sachs Capital II | 4.000% | N/A (10) | Ba1 | 2,002,200 | |||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||
1,200 | Banco BTG Pactual SA/Luxembourg, 144A | 8.750% | N/A (10) | B2 | 840,000 | |||||||||||||||
Industrial Conglomerates – 0.0% | ||||||||||||||||||||
2,000 | OAS Financial Limited, 144A | 8.875% | N/A (10) | N/R | 100,000 | |||||||||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||
400 | EUR | Repsol International Finance BV, Reg S | 3.875% | N/A (10) | Ba1 | 373,249 | ||||||||||||||
Total $1,000 Par (or similar) Institutional Preferred (cost $13,603,097) | 11,300,376 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (5) | Value | |||||||||||||||
ASSET-BACKED SECURITIES – 0.0% | ||||||||||||||||||||
$ | 1 | Green Tree Financial Corporation, Manufactured Housing Contract Pass-Through Certificates, Series 1998-1 | 6.040% | 11/01/29 | AA | $ | 1,020 | |||||||||||||
$ | 1 | Total Asset-Backed Securities (cost $1,003) | 1,020 | |||||||||||||||||
Shares | Description (1), (11) | Value | ||||||||||||||||||
INVESTMENT COMPANIES – 2.8% | ||||||||||||||||||||
10,000 | Adams Natural Resources Fund Inc. | $ | 177,400 | |||||||||||||||||
134,000 | Blackrock Credit Allocation Income Trust IV | 1,653,560 | ||||||||||||||||||
159,500 | First Trust Strategic High Income Fund II | 1,775,235 | ||||||||||||||||||
18,500 | Gabelli Global Gold Natural Resources and Income Trust | 87,875 | ||||||||||||||||||
169,500 | Invesco Dynamic Credit Opportunities Fund | 1,788,225 | ||||||||||||||||||
178,500 | Pimco Income Strategy Fund | 1,738,590 |
Nuveen Investments | 49 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1), (11) | Value | ||||||||||||||
INVESTMENT COMPANIES (continued) | ||||||||||||||||
122,500 | Pioneer Floating Rate Trust | $ | 1,329,125 | |||||||||||||
120,309 | Western Asset Emerging Markets Income Fund | 1,170,607 | ||||||||||||||
34,351 | WhiteHorse Finance Incorporated | 394,349 | ||||||||||||||
Total Investment Companies (cost $11,776,054) | 10,114,966 | |||||||||||||||
Shares | Description (1) | Value | ||||||||||||||
WARRANTS – 0.0% | ||||||||||||||||
336,891 | Iona Energy Inc., (3) | $ | 1,035 | |||||||||||||
6,707 | FairPoint Communications Inc. | 67 | ||||||||||||||
Total Warrants (cost $0) | 1,102 | |||||||||||||||
Total Long-Term Investments (cost $428,822,528) | 336,255,249 | |||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 5.6% | ||||||||||||||||
Money Market Funds – 5.6% | ||||||||||||||||
20,019,220 | Mount Vernon Securities Lending Trust Prime Portfolio, (13) | 0.473% (12) | $ | 20,019,220 | ||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $20,019,220) | 20,019,220 | |||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||
SHORT-TERM INVESTMENTS – 4.4% | ||||||||||||||||
Money Market Funds – 4.4% | ||||||||||||||||
15,854,091 | First American Treasury Obligations Fund, Class Z | 0.108% (12) | $ | 15,854,091 | ||||||||||||
Total Short-Term Investments (cost $15,854,091) | 15,854,091 | |||||||||||||||
Total Investments (cost $464,695,839) – 104.2% | 372,128,560 | |||||||||||||||
Other Assets Less Liabilities – (4.2)% (14) | (14,857,919 | ) | ||||||||||||||
Net Assets – 100% | $ | 357,270,641 |
50 | Nuveen Investments |
Investments in Derivatives as of December 31, 2015
Forward Foreign Currency Exchange Contracts outstanding:
| ||||||||||||||||||||
Counterparty | Currency Contracts to Deliver | Amount (Local Currency) | In Exchange For Currency | Amount (Local Currency) | Settlement Date | Unrealized Appreciation (Depreciation) (U.S. Dollars) | ||||||||||||||
Bank of America, N.A. | Pound Sterling | 2,290,000 | U.S. Dollar | 3,489,617 | 1/22/16 | $ | 113,499 | |||||||||||||
Bank of America, N.A. | U.S. Dollar | 1,962,362 | Pound Sterling | 1,300,000 | 1/22/16 | (45,788 | ) | |||||||||||||
Citigroup Global Markets, Inc. | Euro | 7,811,900 | U.S. Dollar | 8,601,527 | 1/29/16 | 105,698 | ||||||||||||||
Citigroup Global Markets, Inc. | U.S. Dollar | 214,721 | Euro | 197,000 | 1/29/16 | (473 | ) | |||||||||||||
Citigroup Global Markets, Inc. | U.S. Dollar | 1,019,621 | Euro | 923,000 | 1/29/16 | (15,812 | ) | |||||||||||||
Citigroup Global Markets, Inc. | U.S. Dollar | 1,179,194 | Euro | 1,080,000 | 1/29/16 | (4,640 | ) | |||||||||||||
Citigroup Global Markets, Inc. | U.S. Dollar | 1,628,472 | Euro | 1,500,000 | 1/29/16 | 2,852 | ||||||||||||||
Goldman Sachs Bank USA | Canadian Dollar | 14,525,000 | U.S. Dollar | 10,743,343 | 1/29/16 | 245,469 | ||||||||||||||
Goldman Sachs Bank USA | Norwegian Krone | 28,316,000 | U.S. Dollar | 3,244,970 | 1/22/16 | 46,730 | ||||||||||||||
Goldman Sachs Bank USA | Swedish Krona | 15,525,000 | U.S. Dollar | 1,788,247 | 1/22/16 | (52,125 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 179,332 | Norwegian Krone | 1,580,000 | 1/22/16 | (874 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 299,170 | Canadian Dollar | 417,000 | 1/29/16 | 2,214 | ||||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 432,420 | Canadian Dollar | 600,000 | 1/29/16 | 1,227 | ||||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 438,673 | Swedish Krona | 3,725,000 | 1/22/16 | 2,898 | ||||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 1,020,262 | Canadian Dollar | 1,386,000 | 1/29/16 | (18,537 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 1,401,205 | Norwegian Krone | 12,190,000 | 1/22/16 | (24,367 | ) | |||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 1,401,552 | Swedish Krona | 11,800,000 | 1/22/16 | (2,750 | ) | |||||||||||||
$ | 355,221 |
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (99 | ) | 3/16 | $ | (11,713,711 | ) | $ | (13,922 | ) | $ | 37,660 | ||||||||||||
U.S. Treasury 10-Year Note | Long | 146 | 3/16 | 18,382,313 | 43,343 | (10,618 | ) | |||||||||||||||||
$ | 6,668,602 | $ | 29,421 | $ | 27,042 |
Nuveen Investments | 51 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
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 valued at fair value using methods determined in good faith by, or at discretion of, the Board. 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. |
(4) | Investment, or a 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 $19,237,593. |
(5) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(6) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
(7) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
(8) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
(9) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(10) | Perpetual security. Maturity date is not applicable. |
(11) | A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission (SEC) on its website at http://www.sec.gov. |
(12) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(13) | 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 100% 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. |
(14) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
(15) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
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. |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Pound Sterling |
NOK | Norwegian Krone |
See accompanying notes to financial statements.
52 | Nuveen Investments |
Nuveen Strategic Income Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
LONG-TERM INVESTMENTS – 97.7% | ||||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||
50 | Dayton Superior, Class A, (2), (3) | $ | 2,839 | |||||||||||||||||
55 | Dayton Superior, Class 1, (2), (3) | 3,154 | ||||||||||||||||||
Total Building Products | 5,993 | |||||||||||||||||||
Total Common Stocks (cost $20,079) | 5,993 | |||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (4) | Value | ||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.1% | ||||||||||||||||||||
Electric Utilities – 0.1% | ||||||||||||||||||||
15,000 | Exelon Corporation | 6.500% | BBB– | $ | 607,050 | |||||||||||||||
Independent Power & Renewable Electricity Producers – 0.0% | ||||||||||||||||||||
7,500 | Dynegy Inc., (5) | 5.375% | N/R | 375,975 | ||||||||||||||||
Total Convertible Preferred Securities (cost $1,488,400) | 983,025 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon (7) | Maturity (6) | Ratings (4) | Value | |||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 1.3% (7) | ||||||||||||||||||||
Auto Components – 0.3% | ||||||||||||||||||||
$ | 988 | Cooper-Standard Automotive Inc., Term Loan B | 4.000% | 3/28/21 | BB– | $ | 974,744 | |||||||||||||
1,979 | Crowne Group LLC, First Lien Term Loan B | 6.000% | 9/29/20 | B | 1,930,500 | |||||||||||||||
2,967 | Total Auto Components | 2,905,244 | ||||||||||||||||||
Diversified Financial Services – 0.1% | ||||||||||||||||||||
998 | Jill Acquisition LLC, First Lien Term Loan B | 6.000% | 5/08/22 | B | 977,550 | |||||||||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||||||||||||||
993 | Surgery Center Holdings Inc., First Lien Term Loan | 5.250% | 7/24/20 | B | 987,124 | |||||||||||||||
Hotels, Restaurants & Leisure – 0.4% | ||||||||||||||||||||
1,980 | Amaya BV, First Lien Term Loan | 5.000% | 7/29/21 | BB | 1,854,636 | |||||||||||||||
1,496 | Life Time Fitness, First Lien Term Loan B | 4.250% | 6/03/22 | BB– | 1,458,832 | |||||||||||||||
980 | Rock Ohio Caesar LLC, Term Loan B | 5.000% | 3/29/19 | B+ | 911,400 | |||||||||||||||
4,456 | Total Hotels, Restaurants & Leisure | 4,224,868 | ||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.1% | ||||||||||||||||||||
65 | Empire Generating Company LLC, Term Loan C | 5.250% | 3/13/21 | B+ | 53,804 | |||||||||||||||
889 | Empire Generating Company LLC | 5.250% | 3/13/21 | B+ | 733,603 | |||||||||||||||
954 | Total Independent Power & Renewable Electricity Producers | 787,407 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||
980 | Arch Coal Inc., Term Loan B | 6.250% | 5/16/18 | Caa1 | 452,338 |
Nuveen Investments | 53 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon (7) | Maturity (6) | Ratings (4) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 2,000 | Samson Investment Company Second Lien Term Loan, (8) | 5.000% | 9/25/18 | N/R | $ | 100,000 | |||||||||||||
2,980 | Total Oil, Gas & Consumable Fuels | 552,338 | ||||||||||||||||||
Professional Services – 0.2% | ||||||||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 6.750% | 2/28/22 | CCC+ | 923,750 | |||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 6.750% | 2/28/22 | CCC+ | 923,750 | |||||||||||||||
2,000 | Total Professional Services | 1,847,500 | ||||||||||||||||||
$ | 15,348 | Total Variable Rate Senior Loan Interests (cost $15,233,535) | 12,282,031 | |||||||||||||||||
Shares | Description (1) | Coupon | Ratings (4) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.5% | ||||||||||||||||||||
Banks – 0.5% | ||||||||||||||||||||
20,600 | AgriBank FCB, (15) | 6.875% | BBB+ | $ | 2,177,807 | |||||||||||||||
20,000 | Cobank Agricultural Credit Bank, (15) | 6.200% | BBB+ | 2,018,750 | ||||||||||||||||
Total Banks | 4,196,557 | |||||||||||||||||||
Multi-Utilities – 0.0% | ||||||||||||||||||||
5,000 | Dominion Resources Inc. | 6.375% | Baa3 | 240,400 | ||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $4,315,000) | 4,436,957 | |||||||||||||||||||
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
CORPORATE BONDS – 73.4% | ||||||||||||||||||||
Aerospace & Defense – 1.1% | ||||||||||||||||||||
$ | 2,785 | BAE Systems Holdings, 144A | 3.850% | 12/15/25 | BBB+ | $ | 2,758,743 | |||||||||||||
1,000 | Bombardier Inc., 144A | 7.500% | 3/15/18 | B | 975,000 | |||||||||||||||
2,140 | Exelis, Inc. | 5.550% | 10/01/21 | BBB– | 2,346,812 | |||||||||||||||
3,000 | Martin Marietta Materials | 4.250% | 7/02/24 | BBB | 2,945,781 | |||||||||||||||
1,500 | Triumph Group Inc., (5) | 4.875% | 4/01/21 | Ba3 | 1,208,438 | |||||||||||||||
Total Aerospace & Defense | 10,234,774 | |||||||||||||||||||
Air Freight & Logistics – 0.1% | ||||||||||||||||||||
1,200 | XPO Logistics, Inc., 144A, (5) | 6.500% | 6/15/22 | B2 | 1,110,000 | |||||||||||||||
Airlines – 0.7% | ||||||||||||||||||||
2,000 | American Airlines Group Inc., 144A | 4.625% | 3/01/20 | BB– | 1,905,000 | |||||||||||||||
2,851 | Northwest Airlines Trust Pass Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 3,176,803 | |||||||||||||||
1,500 | VistaJet Malta Finance PLC, 144A, (5) | 7.750% | 6/01/20 | B | 1,125,000 | |||||||||||||||
Total Airlines | 6,206,803 | |||||||||||||||||||
Asset-Backed Securities – 0.2% | ||||||||||||||||||||
1,716 | American Airlines Inc., Pass Through Trust 2013-2B, 144A | 5.600% | 7/15/20 | BBB– | 1,750,181 |
54 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Auto Components – 0.7% | ||||||||||||||||||||
$ | 1,575 | American & Axle Manufacturing Inc., (5) | 6.625% | 10/15/22 | BB– | $ | 1,649,813 | |||||||||||||
1,000 | Midas Intermediate Holdco II LLC / Midas Intermediate Holdco II Finance Inc., 144A | 7.875% | 10/01/22 | CCC+ | 895,000 | |||||||||||||||
1,400 | MPG Holdco I Inc., (5) | 7.375% | 10/15/22 | B+ | 1,414,000 | |||||||||||||||
1,580 | Tenneco Inc. | 5.375% | 12/15/24 | BB+ | 1,603,700 | |||||||||||||||
1,500 | Tupy S/A, 144A | 6.625% | 7/17/24 | BB | 1,308,750 | |||||||||||||||
Total Auto Components | 6,871,263 | |||||||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||
3,000 | General Motors Corporation | 4.000% | 4/01/25 | BBB– | 2,842,089 | |||||||||||||||
3,240 | General Motors Financial Company Inc., (5) | 4.250% | 5/15/23 | BBB– | 3,205,144 | |||||||||||||||
Total Automobiles | 6,047,233 | |||||||||||||||||||
Banks – 8.9% | ||||||||||||||||||||
2,000 | Bancolombia SA | 5.950% | 6/03/21 | BBB+ | 2,062,500 | |||||||||||||||
15,750 | Bank of America Corporation, (5) | 4.000% | 4/01/24 | A | 16,116,125 | |||||||||||||||
4,210 | Bank of America Corporation | 4.200% | 8/26/24 | A– | 4,216,113 | |||||||||||||||
4,025 | Bank of America Corporation | 4.250% | 10/22/26 | A– | 3,984,492 | |||||||||||||||
2,700 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 2,594,768 | |||||||||||||||
1,760 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 1,786,400 | |||||||||||||||
5,710 | Citigroup Inc. | 3.750% | 6/16/24 | A | 5,815,441 | |||||||||||||||
4,665 | Citigroup Inc. | 3.300% | 4/27/25 | A | 4,581,902 | |||||||||||||||
6,000 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 5,974,206 | |||||||||||||||
2,545 | General Electric Capital Corporation | 6.875% | 1/10/39 | AA+ | 3,468,830 | |||||||||||||||
2,360 | HSBC Holdings PLC | 6.800% | 6/01/38 | A+ | 2,937,457 | |||||||||||||||
3,605 | JPMorgan Chase & Company | 3.375% | 5/01/23 | A | 3,545,052 | |||||||||||||||
3,000 | JPMorgan Chase & Company | 3.875% | 9/10/24 | A | 2,985,756 | |||||||||||||||
2,280 | JPMorgan Chase & Company | 6.400% | 5/15/38 | A+ | 2,904,294 | |||||||||||||||
1,000 | Popular Inc. | 7.000% | 7/01/19 | BB– | 935,000 | |||||||||||||||
1,220 | Royal Bank of Scotland Group PLC | 6.100% | 6/10/23 | BBB | 1,311,406 | |||||||||||||||
3,335 | Santander UK PLC, 144A | 5.000% | 11/07/23 | A– | 3,471,572 | |||||||||||||||
2,485 | Societe Generale, 144A | 5.000% | 1/17/24 | A– | 2,534,208 | |||||||||||||||
1,960 | Standard Chartered PLC, 144A | 5.700% | 3/26/44 | A2 | 1,961,582 | |||||||||||||||
1,500 | State Bank of India London, 144A | 3.622% | 4/17/19 | BBB– | 1,528,749 | |||||||||||||||
2,000 | State Bank of India London, 144A | 4.875% | 4/17/24 | BBB– | 2,137,570 | |||||||||||||||
4,500 | Wells Fargo & Company | 4.100% | 6/03/26 | A+ | 4,542,732 | |||||||||||||||
Total Banks | 81,396,155 | |||||||||||||||||||
Beverages – 0.5% | ||||||||||||||||||||
1,250 | Andalou Efes Biracilik ve Malt Sanayii AS, 144A | 3.375% | 11/01/22 | BBB– | 1,048,490 | |||||||||||||||
1,350 | Constellation Brands Inc. | 4.250% | 5/01/23 | BB+ | 1,350,000 | |||||||||||||||
2,000 | DS Services of America, Inc., 144A | 10.000% | 9/01/21 | BB– | 2,270,000 | |||||||||||||||
Total Beverages | 4,668,490 |
Nuveen Investments | 55 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Building Products – 1.1% | ||||||||||||||||||||
$ | 1,500 | Builders FirstSource Inc., 144A | 7.625% | 6/01/21 | BB– | $ | 1,578,750 | |||||||||||||
1,500 | Hardwoods Acquisition Inc., 144A | 7.500% | 8/01/21 | B | 1,237,500 | |||||||||||||||
1,875 | Masco Corporation | 5.950% | 3/15/22 | BBB | 2,025,000 | |||||||||||||||
2,000 | NCI Building Systems, Inc., 144A | 8.250% | 1/15/23 | B+ | 2,100,000 | |||||||||||||||
2,740 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB– | 2,743,326 | |||||||||||||||
Total Building Products | 9,684,576 | |||||||||||||||||||
Capital Markets – 4.7% | ||||||||||||||||||||
900 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 1,023,586 | |||||||||||||||
14,800 | Goldman Sachs Group, Inc. | 4.000% | 3/03/24 | A | 15,198,253 | |||||||||||||||
1,920 | Goldman Sachs Group, Inc. | 4.250% | 10/21/25 | A– | 1,906,518 | |||||||||||||||
14,815 | Morgan Stanley | 4.000% | 7/23/25 | A | 15,268,843 | |||||||||||||||
10,500 | Morgan Stanley | 3.950% | 4/23/27 | A– | 10,195,448 | |||||||||||||||
Total Capital Markets | 43,592,648 | |||||||||||||||||||
Chemicals – 2.3% | ||||||||||||||||||||
3,000 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 2,738,646 | |||||||||||||||
2,125 | Braskem Finance Limited, 144A | 5.750% | 4/15/21 | BBB– | 1,848,750 | |||||||||||||||
2,500 | Chemours Co, 144A | 6.625% | 5/15/23 | BB– | 1,750,000 | |||||||||||||||
1,450 | Hexion Inc. | 6.625% | 4/15/20 | B3 | 1,134,625 | |||||||||||||||
1,600 | Huntsman International LLC, (5) | 4.875% | 11/15/20 | B1 | 1,460,000 | |||||||||||||||
964 | Ineos Group Holdings SA, 144A, (5) | 6.125% | 8/15/18 | B– | 954,360 | |||||||||||||||
2,000 | Momentive Performance Materials Inc., (3), (8) | 8.875% | 10/15/20 | N/R | — | |||||||||||||||
2,000 | Momentive Performance Materials Inc. | 3.880% | 10/24/21 | B | 1,380,000 | |||||||||||||||
2,000 | NOVA Chemicals Corporation, 144A, (5) | 5.250% | 8/01/23 | BBB– | 1,980,000 | |||||||||||||||
1,350 | NOVA Chemicals Corporation, 144A, (5) | 5.000% | 5/01/25 | BBB– | 1,312,875 | |||||||||||||||
1,600 | Office Cherifien Des Phosphates SA, 144A | 5.625% | 4/25/24 | BBB– | 1,623,600 | |||||||||||||||
1,800 | Platform Specialty Products Corporation, 144A | 6.500% | 2/01/22 | B+ | 1,557,000 | |||||||||||||||
1,605 | PolyOne Corporation | 5.250% | 3/15/23 | BB– | 1,564,875 | |||||||||||||||
715 | Rayonier AM Products Inc., 144A | 5.500% | 6/01/24 | BB | 564,850 | |||||||||||||||
1,750 | Tronox Finance LLC, (5) | 6.375% | 8/15/20 | B+ | 1,053,150 | |||||||||||||||
Total Chemicals | 20,922,731 | |||||||||||||||||||
Commercial Services & Supplies – 1.1% | ||||||||||||||||||||
1,995 | ABX Group Inc. | 6.375% | 12/01/19 | Ba3 | 1,910,213 | |||||||||||||||
1,290 | ADT Corporation, (5) | 6.250% | 10/15/21 | BBB– | 1,347,470 | |||||||||||||||
1,200 | Casella Waste Systems Inc. | 7.750% | 2/15/19 | B– | 1,191,000 | |||||||||||||||
1,320 | Clean Harbors Inc., (5) | 5.250% | 8/01/20 | BB+ | 1,346,400 | |||||||||||||||
1,220 | Covanta Energy Corporation, Synthetic Letter of Credit | 6.375% | 10/01/22 | Ba3 | 1,213,900 | |||||||||||||||
2,000 | ERAC USA Finance LLC, 144A, (5) | 3.850% | 11/15/24 | BBB+ | 2,001,594 | |||||||||||||||
1,000 | CAD | GFL Environmental Corporation, 144A | 7.500% | 6/18/18 | B | 708,246 |
56 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Commercial Services & Supplies (continued) | ||||||||||||||||||||
$ | 800 | R.R. Donnelley & Sons Company, (5) | 7.625% | 6/15/20 | BB– | $ | 824,920 | |||||||||||||
Total Commercial Services & Supplies | 10,543,743 | |||||||||||||||||||
Communications Equipment – 0.5% | ||||||||||||||||||||
700 | Goodman Networks Inc. | 12.125% | 7/01/18 | CCC+ | 189,000 | |||||||||||||||
4,940 | Qualcomm, Inc., (5) | 3.450% | 5/20/25 | A+ | 4,739,026 | |||||||||||||||
Total Communications Equipment | 4,928,026 | |||||||||||||||||||
Construction & Engineering – 0.2% | ||||||||||||||||||||
1,450 | AECOM Technology Corporation | 5.750% | 10/15/22 | BB– | 1,493,500 | |||||||||||||||
500 | Boart Longyear Management Pty Ltd, 144A | 7.000% | 4/01/21 | CCC+ | 200,000 | |||||||||||||||
Total Construction & Engineering | 1,693,500 | |||||||||||||||||||
Construction Materials – 0.6% | ||||||||||||||||||||
1,000 | Cemex Finance LLC, 144A | 9.375% | 10/12/22 | BB– | 1,052,500 | |||||||||||||||
1,500 | Cemex SAB de CV, 144A, (5) | 5.700% | 1/11/25 | BB– | 1,254,375 | |||||||||||||||
1,200 | Norbord Inc., 144A | 5.375% | 12/01/20 | Ba2 | 1,200,000 | |||||||||||||||
2,000 | Reliance Intermediate Holdings LP, 144A | 6.500% | 4/01/23 | BB– | 2,080,000 | |||||||||||||||
Total Construction Materials | 5,586,875 | |||||||||||||||||||
Consumer Finance – 1.8% | ||||||||||||||||||||
3,938 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 3,855,428 | |||||||||||||||
750 | Credit Acceptance Corporation, 144A, (5) | 7.375% | 3/15/23 | BB | 746,250 | |||||||||||||||
3,500 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 3,523,506 | |||||||||||||||
3,215 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 3,439,552 | |||||||||||||||
1,500 | First Data Corporation, 144A | 7.000% | 12/01/23 | B | 1,500,000 | |||||||||||||||
3,445 | Ford Motor Credit Company | 4.250% | 9/20/22 | BBB– | 3,524,648 | |||||||||||||||
Total Consumer Finance | 16,589,384 | |||||||||||||||||||
Containers & Packaging – 1.3% | ||||||||||||||||||||
2,131 | Ardagh Finance Holdings SA, 144A, (5) | 8.625% | 6/15/19 | CCC+ | 2,100,587 | |||||||||||||||
2,100 | CAD | Cascades Inc., 144A | 5.500% | 7/15/21 | Ba3 | 1,473,779 | ||||||||||||||
1,000 | Coveris Holdings SA, 144A | 7.875% | 11/01/19 | B– | 872,500 | |||||||||||||||
2,385 | Packaging Corporation of America | 3.650% | 9/15/24 | BBB | 2,318,916 | |||||||||||||||
1,000 | PaperWorks Industries Inc., 144A | 9.500% | 8/15/19 | B– | 915,000 | |||||||||||||||
3,640 | Rock-Tenn Company | 4.900% | 3/01/22 | BBB | 3,860,777 | |||||||||||||||
Total Containers & Packaging | 11,541,559 | |||||||||||||||||||
Diversified Consumer Services – 0.3% | ||||||||||||||||||||
1,000 | Gibson Brands Inc., 144A | 8.875% | 8/01/18 | B– | 580,000 | |||||||||||||||
1,150 | Nine West Holdings Incorporated, 144A | 8.250% | 3/15/19 | CCC– | 230,000 | |||||||||||||||
1,500 | GBP | Twinkle Pizza Holdings PLC, 144A | 6.625% | 8/01/21 | B | 2,262,485 | ||||||||||||||
Total Diversified Consumer Services | 3,072,485 |
Nuveen Investments | 57 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Diversified Financial Services – 2.0% | ||||||||||||||||||||
$ | 1,125 | Argos Merger Sub Inc., 144A | 7.125% | 3/15/23 | B– | $ | 1,115,438 | |||||||||||||
5,465 | BNP Paribas, (5) | 4.250% | 10/15/24 | A | 5,416,750 | |||||||||||||||
750 | CNG Holdings Inc., 144A | 9.375% | 5/15/20 | B– | 315,000 | |||||||||||||||
1,650 | Fly Leasing Limited | 6.750% | 12/15/20 | BB | 1,691,003 | |||||||||||||||
1,750 | James Hardie International Finance Limited, 144A | 5.875% | 2/15/23 | BBB– | 1,785,000 | |||||||||||||||
1,000 | Jefferies Finance LLC Corporation, 144A, (5) | 7.375% | 4/01/20 | B1 | 887,500 | |||||||||||||||
1,300 | Jefferies LoanCore LLC Finance Corporation, 144A | 6.875% | 6/01/20 | B | 1,235,000 | |||||||||||||||
1,745 | Nationstar Mortgage LLC Capital Corporation | 7.875% | 10/01/20 | B+ | 1,669,965 | |||||||||||||||
1,000 | NewStar Financial, Inc. | 7.250% | 5/01/20 | BB– | 970,000 | |||||||||||||||
3,705 | Synchrony Financial | 4.250% | 8/15/24 | BBB– | 3,655,271 | |||||||||||||||
Total Diversified Financial Services | 18,740,927 | |||||||||||||||||||
Diversified Telecommunication Services – 3.0% | ||||||||||||||||||||
1,250 | AT&T, Inc. | 5.550% | 8/15/41 | A– | 1,255,144 | |||||||||||||||
1,000 | CenturyLink Inc. | 6.750% | 12/01/23 | BB+ | 937,500 | |||||||||||||||
600 | CyrusOne LP Finance | 6.375% | 11/15/22 | B+ | 618,000 | |||||||||||||||
2,000 | Frontier Communications Corporation, 144A | 11.000% | 9/15/25 | BB | 1,980,000 | |||||||||||||||
2,240 | Frontier Communications Corporation | 8.500% | 4/15/20 | BB | 2,245,600 | |||||||||||||||
1,750 | GCI Inc. | 6.875% | 4/15/25 | BB– | 1,789,375 | |||||||||||||||
1,000 | IntelSat Jackson Holdings, (5) | 7.500% | 4/01/21 | B+ | 870,000 | |||||||||||||||
1,000 | IntelSat Jackson Holdings | 6.625% | 12/15/22 | CCC+ | 637,500 | |||||||||||||||
1,000 | Level 3 Financing Inc. | 5.375% | 8/15/22 | BB | 1,015,000 | |||||||||||||||
2,500 | Neptune Finco Corporation, 144A | 10.125% | 1/15/23 | B2 | 2,606,250 | |||||||||||||||
2,360 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 2,472,100 | |||||||||||||||
6,540 | Verizon Communications | 5.150% | 9/15/23 | A– | 7,190,351 | |||||||||||||||
3,000 | Verizon Communications, (5) | 3.500% | 11/01/24 | A– | 2,964,561 | |||||||||||||||
700 | Verizon Communications, (5) | 6.550% | 9/15/43 | A– | 831,024 | |||||||||||||||
Total Diversified Telecommunication Services | 27,412,405 | |||||||||||||||||||
Electric Utilities – 1.1% | ||||||||||||||||||||
2,030 | APT Pipelines Limited, 144A | 3.875% | 10/11/22 | BBB | 1,953,702 | |||||||||||||||
2,600 | Eskom Holdings Limited, 144A, (5) | 7.125% | 2/11/25 | BB+ | 2,249,000 | |||||||||||||||
2,615 | FirstEnergy Transmission LLC, 144A | 4.350% | 1/15/25 | Baa3 | 2,652,188 | |||||||||||||||
1,750 | Intergen NV, 144A | 7.000% | 6/30/23 | B+ | 1,386,875 | |||||||||||||||
1,690 | PPL Energy Supply LLC, 144A, (5) | 6.500% | 6/01/25 | Ba3 | 1,115,400 | |||||||||||||||
1,000 | RJS Power Holdings LLC, 144A | 5.125% | 7/15/19 | Ba3 | 750,000 | |||||||||||||||
Total Electric Utilities | 10,107,165 | |||||||||||||||||||
Electronic Equipment, Instruments & Components – 0.1% | ||||||||||||||||||||
1,400 | Anixter Inc. | 5.125% | 10/01/21 | BB+ | 1,400,000 |
58 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Energy Equipment & Services – 1.7% | ||||||||||||||||||||
$ | 1,985 | Diamond Offshore Drilling Inc., (5) | 5.700% | 10/15/39 | BBB+ | $ | 1,356,227 | |||||||||||||
3,075 | Ensco PLC, (5) | 4.700% | 3/15/21 | BBB | 2,477,011 | |||||||||||||||
2,500 | Ensco PLC, (5) | 5.200% | 3/15/25 | BBB | 1,780,010 | |||||||||||||||
500 | McDermott International Inc., 144A, (5) | 8.000% | 5/01/21 | BB– | 397,500 | |||||||||||||||
1,835 | Nabors Industries Inc. | 4.625% | 9/15/21 | Baa2 | 1,508,530 | |||||||||||||||
3,000 | Noble Holding International Limited, GDR, (5) | 5.950% | 4/01/25 | BBB | 2,070,282 | |||||||||||||||
2,000 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 1,950,514 | |||||||||||||||
750 | Pacific Drilling V Limited, 144A | 7.250% | 12/01/17 | B | 386,250 | |||||||||||||||
2,750 | Regency Energy Partners Finance | 5.000% | 10/01/22 | BBB– | 2,437,223 | |||||||||||||||
750 | Seventy Seven Energy Inc. | 6.625% | 11/15/19 | CCC+ | 262,500 | |||||||||||||||
1,385 | Weatherford International PLC | 7.000% | 3/15/38 | BBB– | 966,038 | |||||||||||||||
Total Energy Equipment & Services | 15,592,085 | |||||||||||||||||||
Food & Staples Retailing – 0.8% | ||||||||||||||||||||
1,750 | Supervalu Inc., (5) | 7.750% | 11/15/22 | B | 1,601,250 | |||||||||||||||
3,000 | Tops Holding LLC / Tops Markets II Corporation, 144A | 8.000% | 6/15/22 | B | 2,955,000 | |||||||||||||||
3,000 | Walgreens Boots Alliance, Inc. | 3.800% | 11/18/24 | BBB | 2,912,787 | |||||||||||||||
Total Food & Staples Retailing | 7,469,037 | |||||||||||||||||||
Food Products – 1.1% | ||||||||||||||||||||
1,500 | BRF Brasil Foods SA, 144A | 4.750% | 5/22/24 | BBB | 1,376,250 | |||||||||||||||
2,000 | Grupo Bimbo SAB de CV, 144A | 3.875% | 6/27/24 | BBB | 1,943,758 | |||||||||||||||
3,185 | Kraft Foods Group Inc. | 5.000% | 6/04/42 | BBB– | 3,206,855 | |||||||||||||||
1,295 | Pilgrim’s Pride Corporation, 144A | 5.750% | 3/15/25 | BB+ | 1,259,388 | |||||||||||||||
2,000 | Tyson Foods, (5) | 3.950% | 8/15/24 | BBB | 2,053,592 | |||||||||||||||
Total Food Products | 9,839,843 | |||||||||||||||||||
Gas Utilities – 0.2% | ||||||||||||||||||||
1,390 | Ferrellgas LP | 6.750% | 1/15/22 | B+ | 1,171,075 | |||||||||||||||
1,250 | Suburban Propane Partners LP | 5.500% | 6/01/24 | BB– | 1,006,250 | |||||||||||||||
Total Gas Utilities | 2,177,325 | |||||||||||||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||||||||||||||
400 | EUR | Ephios Bondco PLC, 144A | 6.250% | 7/01/22 | B+ | 450,764 | ||||||||||||||
1,625 | GreatBatch Limited, 144A | 9.125% | 11/01/23 | B– | 1,608,750 | |||||||||||||||
1,000 | Tenet Healthcare Corporation, (5) | 4.375% | 10/01/21 | Ba2 | 965,000 | |||||||||||||||
Total Health Care Equipment & Supplies | 3,024,514 | |||||||||||||||||||
Health Care Providers & Services – 0.7% | ||||||||||||||||||||
2,850 | Community Health Systems, Inc., (5) | 6.875% | 2/01/22 | B+ | 2,703,938 | |||||||||||||||
1,750 | Kindred Healthcare Inc. | 6.375% | 4/15/22 | B2 | 1,452,500 | |||||||||||||||
1,000 | Mednax Inc., 144A | 5.250% | 12/01/23 | BBB– | 1,005,000 | |||||||||||||||
1,250 | Select Medical Corporation | 6.375% | 6/01/21 | B– | 1,093,750 | |||||||||||||||
Total Health Care Providers & Services | 6,255,188 |
Nuveen Investments | 59 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||||||||||||||
$ | 1,500 | 1011778 BC ULC/New Red Finance Inc., 144A | 6.000% | 4/01/22 | B– | $ | 1,545,000 | |||||||||||||
3,250 | Caesars Entertainment Resort Properties LLC, (5) | 8.000% | 10/01/20 | B+ | 3,087,500 | |||||||||||||||
1,250 | Caesars Growth Properties Holdings LLC / Caesars Growth Properties Finance Inc., (5) | 9.375% | 5/01/22 | B– | 1,025,000 | |||||||||||||||
2,000 | Roc Finance LLC and Roc Finance 1 Corporation, 144A | 12.125% | 9/01/18 | B– | 2,090,000 | |||||||||||||||
1,500 | Scientific Games Corporation, 144A | 7.000% | 1/01/22 | BB– | 1,432,500 | |||||||||||||||
1,650 | Wynn Macau Limited, 144A, (5) | 5.250% | 10/15/21 | Ba2 | 1,452,000 | |||||||||||||||
Total Hotels, Restaurants & Leisure | 10,632,000 | |||||||||||||||||||
Household Durables – 1.3% | ||||||||||||||||||||
1,875 | Brookfield Residential Properties Inc., 144A | 6.500% | 12/15/20 | BB– | 1,807,031 | |||||||||||||||
1,000 | CalAtlantic Group Inc. | 5.875% | 11/15/24 | BB | 1,045,000 | |||||||||||||||
2,940 | Harman International Industries, Inc. | 4.150% | 5/15/25 | BBB– | 2,819,304 | |||||||||||||||
1,750 | KB Home | 7.000% | 12/15/21 | B+ | 1,725,938 | |||||||||||||||
1,000 | KB Home | 7.625% | 5/15/23 | B+ | 987,500 | |||||||||||||||
1,500 | RSI Home Products Incorporated, 144A | 6.500% | 3/15/23 | B+ | 1,545,000 | |||||||||||||||
1,800 | William Lyon Homes Incorporated | 8.500% | 11/15/20 | B– | 1,903,500 | |||||||||||||||
Total Household Durables | 11,833,273 | |||||||||||||||||||
Household Products – 0.3% | ||||||||||||||||||||
1,300 | Kimberly-Clark de Mexico, S.A.B. de C.V, 144A | 3.250% | 3/12/25 | A | 1,252,402 | |||||||||||||||
2,000 | Macys Retail Holdings Inc. | 4.500% | 12/15/34 | BBB+ | 1,671,360 | |||||||||||||||
Total Household Products | 2,923,762 | |||||||||||||||||||
Independent Power & Renewable Electricity Producers – 1.0% | ||||||||||||||||||||
3,700 | AES Corporation, (5) | 7.375% | 7/01/21 | BB | 3,774,000 | |||||||||||||||
1,000 | Columbia Pipeline Group, Inc., 144A | 4.500% | 6/01/25 | Baa2 | 906,382 | |||||||||||||||
2,000 | Dynegy Inc., (5) | 7.625% | 11/01/24 | B+ | 1,709,600 | |||||||||||||||
1,650 | GenOn Energy Inc. | 9.500% | 10/15/18 | B– | 1,332,920 | |||||||||||||||
1,500 | GenOn Energy Inc. | 9.875% | 10/15/20 | B– | 1,110,000 | |||||||||||||||
Total Independent Power & Renewable Electricity Producers | 8,832,902 | |||||||||||||||||||
Industrial Conglomerates – 0.2% | ||||||||||||||||||||
1,000 | Alfa SAB de CV, 144A, (5) | 5.250% | 3/25/24 | BBB– | 1,012,500 | |||||||||||||||
1,000 | Stena AB, 144A | 7.000% | 2/01/24 | BB | 850,000 | |||||||||||||||
Total Industrial Conglomerates | 1,862,500 | |||||||||||||||||||
Insurance – 2.7% | ||||||||||||||||||||
2,475 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 3,035,761 | |||||||||||||||
3,000 | Fairfax US Inc., 144A | 4.875% | 8/13/24 | BBB– | 2,913,612 | |||||||||||||||
3,255 | Genworth Holdings Inc. | 4.800% | 2/15/24 | Ba1 | 2,197,125 | |||||||||||||||
3,370 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 3,572,183 | |||||||||||||||
3,498 | Lincoln National Corporation | 4.200% | 3/15/22 | A– | 3,657,649 |
60 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Insurance (continued) | ||||||||||||||||||||
$ | 3,015 | Symetra Financial Corporation | 4.250% | 7/15/24 | BBB+ | $ | 3,039,039 | |||||||||||||
1,830 | UnumProvident Corporation | 5.625% | 9/15/20 | BBB | 2,012,854 | |||||||||||||||
4,790 | XLIT Limited | 4.450% | 3/31/25 | BBB | 4,694,962 | |||||||||||||||
Total Insurance | 25,123,185 | |||||||||||||||||||
Internet Software & Services – 0.1% | ||||||||||||||||||||
1,000 | Earthlink Inc. | 7.375% | 6/01/20 | Ba3 | 1,017,500 | |||||||||||||||
IT Services – 0.2% | ||||||||||||||||||||
1,730 | Zayo Group LLC / Zayo Capital Inc. | 6.000% | 4/01/23 | B– | 1,634,850 | |||||||||||||||
Machinery – 1.1% | ||||||||||||||||||||
1,060 | BlueLine Rental Finance Corporation, 144A, (5) | 7.000% | 2/01/19 | B+ | 954,000 | |||||||||||||||
1,510 | CTP Transportation Products LLC-Finance Inc., 144A | 8.250% | 12/15/19 | B | 1,574,175 | |||||||||||||||
3,100 | Ingersoll-Rand Luxembourg Finance SA | 3.550% | 11/01/24 | BBB | 3,035,139 | |||||||||||||||
3,280 | Pentair Finance SA | 4.650% | 9/15/25 | BBB | 3,361,728 | |||||||||||||||
1,640 | Terex Corporation, (5) | 6.000% | 5/15/21 | BB | 1,508,800 | |||||||||||||||
Total Machinery | 10,433,842 | |||||||||||||||||||
Marine – 0.5% | ||||||||||||||||||||
1,900 | Eletson Holdings Inc., 144A | 9.625% | 1/15/22 | B+ | 1,691,000 | |||||||||||||||
1,000 | Global Ship Lease Inc., 144A | 10.000% | 4/01/19 | B | 905,000 | |||||||||||||||
1,340 | Navios Maritime Acquisition Corporation, 144A | 8.125% | 11/15/21 | BB– | 1,169,150 | |||||||||||||||
1,100 | Navios South American Logisitics Inc., Finance US Inc., 144A | 7.250% | 5/01/22 | B | 720,500 | |||||||||||||||
Total Marine | 4,485,650 | |||||||||||||||||||
Media – 4.8% | ||||||||||||||||||||
2,750 | 21st Century Fox America Inc. | 6.650% | 11/15/37 | BBB+ | 3,195,668 | |||||||||||||||
1,500 | Altice S.A, 144A | 7.750% | 5/15/22 | B | 1,353,750 | |||||||||||||||
2,810 | CBS Corporation | 3.500% | 1/15/25 | BBB | 2,680,650 | |||||||||||||||
4,310 | CCO Safari II LLC, 144A | 4.908% | 7/23/25 | BBB– | 4,305,761 | |||||||||||||||
1,175 | Cequel Communication Holdings I, 144A | 5.125% | 12/15/21 | B– | 1,057,500 | |||||||||||||||
740 | Charter Communications, CCO Holdings LLC, (5) | 5.125% | 2/15/23 | BB– | 740,925 | |||||||||||||||
2,000 | Clear Channel Communications, Inc. | 11.250% | 3/01/21 | CCC+ | 1,400,000 | |||||||||||||||
1,790 | Comcast Corporation | 6.400% | 5/15/38 | A– | 2,221,753 | |||||||||||||||
3,000 | Cox Communications Inc., 144A | 3.850% | 2/01/25 | BBB+ | 2,750,655 | |||||||||||||||
1,500 | CSC Holdings Inc. | 8.625% | 2/15/19 | BB | 1,597,500 | |||||||||||||||
4,335 | DIRECTV Holdings LLC | 3.800% | 3/15/22 | A– | 4,365,040 | |||||||||||||||
1,590 | Dish DBS Corporation | 5.875% | 11/15/24 | BB– | 1,415,100 | |||||||||||||||
1,000 | Lee Enterprises Inc., 144A | 9.500% | 3/15/22 | B2 | 920,000 | |||||||||||||||
1,000 | Midcontinent Communications Finance Company, 144A | 6.250% | 8/01/21 | B | 1,010,000 | |||||||||||||||
2,006 | Numericable Group SA, 144A | 6.000% | 5/15/22 | B+ | 1,945,820 | |||||||||||||||
1,750 | Radio One Inc., 144A | 7.375% | 10/15/22 | B | 1,557,500 |
Nuveen Investments | 61 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Media (continued) | ||||||||||||||||||||
$ | 1,310 | Sinclair Television Group | 6.375% | 11/01/21 | B+ | $ | 1,349,300 | |||||||||||||
1,000 | Sirius XM Radio Inc., 144A | 5.750% | 8/01/21 | BB | 1,032,500 | |||||||||||||||
2,805 | Time Warner Inc. | 3.875% | 1/15/26 | BBB+ | 2,781,951 | |||||||||||||||
1,750 | Tribune Media Company, 144A, (5) | 5.875% | 7/15/22 | BB– | 1,750,000 | |||||||||||||||
750 | Unitymedia KabelBW GmbH, 144A | 6.125% | 1/15/25 | B | 741,113 | |||||||||||||||
1,750 | CAD | Videotron Limited, 144A | 5.625% | 6/15/25 | BB | 1,271,125 | ||||||||||||||
1,500 | VTR Finance BV, 144A | 6.875% | 1/15/24 | B+ | 1,380,000 | |||||||||||||||
1,750 | WMG Acquisition Group, 144A | 6.000% | 1/15/21 | B1 | 1,758,750 | |||||||||||||||
Total Media | 44,582,361 | |||||||||||||||||||
Metals & Mining – 2.8% | ||||||||||||||||||||
1,500 | AK Steel Corporation, (5) | 8.750% | 12/01/18 | B+ | 1,350,000 | |||||||||||||||
500 | AK Steel Corporation | 7.625% | 10/01/21 | CCC+ | 200,000 | |||||||||||||||
1,555 | Alcoa Inc. | 5.400% | 4/15/21 | BBB– | 1,512,238 | |||||||||||||||
2,500 | Allegheny Technologies Inc. | 6.625% | 8/15/23 | BB– | 1,475,000 | |||||||||||||||
2,690 | Anglogold Holdings PLC | 6.500% | 4/15/40 | Baa3 | 1,788,850 | |||||||||||||||
2,015 | ArcelorMittal, (5) | 7.000% | 2/25/22 | BB+ | 1,622,075 | |||||||||||||||
1,500 | ArcelorMittal, (5) | 6.125% | 6/01/25 | BB+ | 1,091,250 | |||||||||||||||
1,200 | Century Aluminum Company, 144A, (5) | 7.500% | 6/01/21 | BB– | 804,000 | |||||||||||||||
1,000 | Constellium N.V, 144A | 8.000% | 1/15/23 | B | 782,500 | |||||||||||||||
1,450 | Eldorado Gold Corporation, 144A | 6.125% | 12/15/20 | BB | 1,268,750 | |||||||||||||||
935 | First Quantum Minerals Limited, 144A | 6.750% | 2/15/20 | BB– | 603,075 | |||||||||||||||
3,165 | Freeport McMoRan, Inc., (5) | 3.550% | 3/01/22 | BBB | 1,835,700 | |||||||||||||||
500 | Lundin Mining Corporation, 144A | 7.500% | 11/01/20 | Ba2 | 468,750 | |||||||||||||||
2,610 | Newmont Mining Corporation | 3.500% | 3/15/22 | BBB | 2,327,193 | |||||||||||||||
1,250 | Novellis Inc. | 8.750% | 12/15/20 | B | 1,146,875 | |||||||||||||||
3,000 | Teck Resources Limited, (5) | 3.750% | 2/01/23 | BB+ | 1,387,500 | |||||||||||||||
2,000 | Vale Overseas Limited, (5) | 4.375% | 1/11/22 | BBB | 1,513,658 | |||||||||||||||
1,500 | Westmoreland Coal Co, 144A | 8.750% | 1/01/22 | B | 922,500 | |||||||||||||||
1,265 | Xstrata Finance Canada Limited, 144A | 6.900% | 11/15/37 | BBB | 1,012,000 | |||||||||||||||
3,000 | Yamana Gold Inc. | 4.950% | 7/15/24 | Baa3 | 2,545,662 | |||||||||||||||
Total Metals & Mining | 25,657,576 | |||||||||||||||||||
Multiline Retail – 0.3% | ||||||||||||||||||||
1,200 | Family Tree Escrow LLC, 144A | 5.250% | 3/01/20 | Ba3 | 1,239,000 | |||||||||||||||
1,400 | J.C. Penney Company Inc., (5) | 8.125% | 10/01/19 | B– | 1,267,000 | |||||||||||||||
Total Multiline Retail | 2,506,000 | |||||||||||||||||||
Oil, Gas & Consumable Fuels – 8.3% | ||||||||||||||||||||
740 | Amerada Hess Corporation | 7.125% | 3/15/33 | BBB | 720,753 | |||||||||||||||
4,170 | Anadarko Petroleum Corporation | 6.200% | 3/15/40 | BBB | 3,836,404 |
62 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 1,600 | Antero Resources Corporation | 5.125% | 12/01/22 | BB | $ | 1,216,000 | |||||||||||||
3,650 | Apache Corporation | 4.250% | 1/15/44 | BBB+ | 2,921,168 | |||||||||||||||
1,700 | CAD | Baytex Energy Corporation | 6.625% | 7/19/22 | BB | 937,979 | ||||||||||||||
1,500 | Bellatrix Exploration Limited, 144A | 8.500% | 5/15/20 | B3 | 1,065,000 | |||||||||||||||
1,295 | Berkshire Hathaway Energy Company | 6.125% | 4/01/36 | A3 | 1,509,212 | |||||||||||||||
2,965 | BP Capital Markets PLC | 3.814% | 2/10/24 | A | 2,964,428 | |||||||||||||||
1,220 | California Resources Corporation, 144A, (5) | 8.000% | 12/15/22 | BB+ | 642,025 | |||||||||||||||
455 | California Resources Corporation, (5) | 5.500% | 9/15/21 | BB– | 143,325 | |||||||||||||||
1,750 | Calumet Specialty Products, (5) | 7.625% | 1/15/22 | B+ | 1,487,500 | |||||||||||||||
1,410 | Canadian Natural Resources Limited | 5.850% | 2/01/35 | BBB+ | 1,249,768 | |||||||||||||||
1,120 | Cenovus Energy Inc. | 3.800% | 9/15/23 | BBB | 1,014,581 | |||||||||||||||
565 | Chesapeake Energy Corporation, 144A, (5) | 8.000% | 12/15/22 | BB– | 276,850 | |||||||||||||||
1,425 | Concho Resources Inc., (5) | 5.500% | 10/01/22 | BB+ | 1,296,750 | |||||||||||||||
2,965 | Continental Resources Inc., (5) | 5.000% | 9/15/22 | BBB– | 2,186,688 | |||||||||||||||
1,750 | Crestwood Midstream Partners LP | 6.125% | 3/01/22 | BB | 1,216,250 | |||||||||||||||
1,300 | Denbury Resources Inc. | 5.500% | 5/01/22 | B1 | 431,574 | |||||||||||||||
1,400 | Energy Transfer Equity LP, (5) | 5.875% | 1/15/24 | BB+ | 1,141,000 | |||||||||||||||
1,000 | Energy Transfer Equity LP | 5.500% | 6/01/27 | BB+ | 760,000 | |||||||||||||||
2,315 | EnLink Midstream Partners LP | 4.150% | 6/01/25 | BBB | 1,781,879 | |||||||||||||||
800 | EnQuest PLC, 144A | 7.000% | 4/15/22 | B– | 279,000 | |||||||||||||||
1,000 | EV Energy Partners LP / EV Energy Finance Corporation | 8.000% | 4/15/19 | B– | 500,000 | |||||||||||||||
1,800 | Gibson Energy, 144A | 6.750% | 7/15/21 | BB | 1,723,500 | |||||||||||||||
1,360 | Global Partners LP/GLP Finance | 6.250% | 7/15/22 | B+ | 1,088,000 | |||||||||||||||
292 | Halcon Resources Corporation, 144A, (5) | 12.000% | 2/15/22 | CCC+ | 192,720 | |||||||||||||||
2,300 | Hess Corporation, (5) | 3.500% | 7/15/24 | BBB | 2,015,281 | |||||||||||||||
2,415 | Kinder Morgan Energy Partners, LP | 4.250% | 9/01/24 | BBB– | 2,055,863 | |||||||||||||||
600 | Kinder Morgan Energy Partners, LP | 6.950% | 1/15/38 | BBB– | 533,389 | |||||||||||||||
5,000 | Marathon Petroleum Corporation, (5) | 3.625% | 9/15/24 | BBB | 4,661,710 | |||||||||||||||
1,060 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 932,800 | |||||||||||||||
2,500 | MEG Energy Corporation, 144A | 6.375% | 1/30/23 | BB– | 1,712,500 | |||||||||||||||
1,000 | Memorial Production Partners LP Finance Corporation | 7.625% | 5/01/21 | CCC+ | 300,000 | |||||||||||||||
2,000 | MPLX LP | 4.000% | 2/15/25 | BBB– | 1,681,630 | |||||||||||||||
2,060 | Newfield Exploration Company | 5.375% | 1/01/26 | BBB– | 1,704,650 | |||||||||||||||
1,550 | NGL Energy Partners LP/Fin Co | 5.125% | 7/15/19 | BB– | 1,224,500 | |||||||||||||||
1,750 | Oasis Petroleum Inc., (5) | 6.875% | 3/15/22 | B+ | 1,120,000 | |||||||||||||||
1,130 | CAD | Paramount Resources Limited, 144A | 7.625% | 12/04/19 | BB– | 659,919 | ||||||||||||||
1,275 | Petro Canada | 6.800% | 5/15/38 | A– | 1,394,126 | |||||||||||||||
2,000 | Reliance Holdings USA Inc., 144A | 5.400% | 2/14/22 | BBB+ | 2,163,880 | |||||||||||||||
1,570 | Rose Rock Midstream LP / Rose Rock Finance Corporation | 5.625% | 7/15/22 | B1 | 1,114,700 |
Nuveen Investments | 63 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
$ | 1,345 | Sabine Pass Liquefaction LLC | 5.625% | 2/01/21 | BB+ | $ | 1,237,400 | |||||||||||||
750 | Sanchez Energy Corporation | 6.125% | 1/15/23 | B– | 405,000 | |||||||||||||||
1,000 | Seven Generations Energy Limited, 144A | 6.750% | 5/01/23 | B2 | 840,000 | |||||||||||||||
2,600 | Southeast Supply Header LLC, 144A | 4.250% | 6/15/24 | BBB– | 2,495,020 | |||||||||||||||
1,445 | Southwestern Energy Company, (5) | 4.100% | 3/15/22 | BBB– | 908,847 | |||||||||||||||
2,250 | Summit Midstream Holdings LLC Finance | 7.500% | 7/01/21 | B | 1,912,500 | |||||||||||||||
1,520 | Targa Resources Inc. | 4.250% | 11/15/23 | BB+ | 1,170,400 | |||||||||||||||
4,100 | Transocean Inc. | 4.300% | 10/15/22 | BB+ | 2,173,000 | |||||||||||||||
3,325 | Valero Energy Corporation, (5) | 3.650% | 3/15/25 | BBB | 3,137,899 | |||||||||||||||
1,000 | Vanguard Natural Resources Finance | 7.875% | 4/01/20 | B | 265,000 | |||||||||||||||
500 | Western Refining Inc. | 6.250% | 4/01/21 | B+ | 480,000 | |||||||||||||||
1,500 | Whiting Petroleum Corporation | 5.750% | 3/15/21 | BB– | 1,093,500 | |||||||||||||||
2,875 | Woodside Finance Limited, 144A | 3.650% | 3/05/25 | BBB+ | 2,548,366 | |||||||||||||||
1,885 | WPX Energy Inc., (5) | 7.500% | 8/01/20 | Ba1 | 1,526,850 | |||||||||||||||
Total Oil, Gas & Consumable Fuels | 76,051,084 | |||||||||||||||||||
Paper & Forest Products – 0.8% | ||||||||||||||||||||
3,100 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | 3,028,917 | |||||||||||||||
1,500 | Mercer International Inc. | 7.750% | 12/01/22 | B+ | 1,515,000 | |||||||||||||||
1,750 | Resolute Forest Products | 5.875% | 5/15/23 | BB– | 1,273,125 | |||||||||||||||
1,500 | Sappi Papier Holding GMBH, 144A | 6.625% | 4/15/21 | BB | 1,515,000 | |||||||||||||||
750 | Tembec Industries, Inc., 144A | 9.000% | 12/15/19 | B– | 487,500 | |||||||||||||||
Total Paper & Forest Products | 7,819,542 | |||||||||||||||||||
Personal Products – 0.4% | ||||||||||||||||||||
2,915 | International Paper Company | 8.700% | 6/15/38 | BBB | 3,750,862 | |||||||||||||||
Pharmaceuticals – 0.4% | ||||||||||||||||||||
2,000 | Endo Finance LLC, 144A | 5.750% | 1/15/22 | B1 | 1,940,000 | |||||||||||||||
1,450 | VP Escrow Corporation, 144A | 6.375% | 10/15/20 | B1 | 1,399,250 | |||||||||||||||
Total Pharmaceuticals | 3,339,250 | |||||||||||||||||||
Professional Services – 0.2% | ||||||||||||||||||||
1,500 | CEB Inc., 144A | 5.625% | 6/15/23 | BB– | 1,488,750 | |||||||||||||||
Real Estate Investment Trust – 2.2% | ||||||||||||||||||||
3,070 | American Tower Company | 5.000% | 2/15/24 | BBB | 3,249,909 | |||||||||||||||
1,500 | Communications Sales & Leasing Inc., 144A | 6.000% | 4/15/23 | BBB– | 1,417,500 | |||||||||||||||
3,500 | Digital Realty Trust Inc. | 3.625% | 10/01/22 | BBB | 3,364,445 | |||||||||||||||
2,060 | Omega Healthcare Investors Inc. | 4.950% | 4/01/24 | BBB– | 2,080,612 | |||||||||||||||
2,080 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 2,082,486 | |||||||||||||||
1,420 | Plum Creek Timberlands LP | 4.700% | 3/15/21 | BBB | 1,510,799 | |||||||||||||||
2,000 | Realogy Group LLC / Realogy Co-Issuer Corporation, 144A, (5) | 5.250% | 12/01/21 | B | 2,050,000 |
64 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||||||||
$ | 3,000 | Senior Housing Properties Trust | 4.750% | 5/01/24 | BBB– | $ | 2,922,798 | |||||||||||||
1,795 | Vereit Operating Partner | 4.600% | 2/06/24 | BB+ | 1,700,763 | |||||||||||||||
Total Real Estate Investment Trust | 20,379,312 | |||||||||||||||||||
Real Estate Management & Development – 0.3% | ||||||||||||||||||||
500 | Crescent Resources LLC, 144A | 10.250% | 8/15/17 | B+ | 500,000 | |||||||||||||||
2,000 | Hunt Companies Inc., 144A | 9.625% | 3/01/21 | N/R | 1,810,000 | |||||||||||||||
760 | Mattamy Group Corporation, 144A, (5) | 6.500% | 11/15/20 | BB | 722,000 | |||||||||||||||
Total Real Estate Management & Development | 3,032,000 | |||||||||||||||||||
Road & Rail – 0.3% | ||||||||||||||||||||
1,000 | Hertz Corporation, (5) | 7.375% | 1/15/21 | B | 1,037,500 | |||||||||||||||
1,350 | Watco Companies LLC Finance, 144A | 6.375% | 4/01/23 | B | 1,329,750 | |||||||||||||||
Total Road & Rail | 2,367,250 | |||||||||||||||||||
Semiconductors & Semiconductor Equipment – 0.1% | ||||||||||||||||||||
1,000 | Advanced Micro Devices, Inc. | 7.000% | 7/01/24 | B– | 650,000 | |||||||||||||||
Software – 0.9% | ||||||||||||||||||||
1,500 | BMC Software Finance Inc., 144A | 8.125% | 7/15/21 | CCC+ | 997,500 | |||||||||||||||
2,395 | Computer Sciences Corporation | 4.450% | 9/15/22 | BBB+ | 2,456,992 | |||||||||||||||
1,500 | Open Text Corporation, 144A | 5.625% | 1/15/23 | BB | 1,485,000 | |||||||||||||||
1,000 | SS&C Technologies Holdings, Inc., 144A | 5.875% | 7/15/23 | B+ | 1,032,500 | |||||||||||||||
2,500 | Total System Services Inc. | 3.750% | 6/01/23 | BBB+ | 2,426,605 | |||||||||||||||
Total Software | 8,398,597 | |||||||||||||||||||
Specialty Retail – 1.4% | ||||||||||||||||||||
2,000 | AutoNation Inc. | 4.500% | 10/01/25 | BBB– | 2,030,414 | |||||||||||||||
2,745 | Bed Bath and Beyond Incorporated | 4.915% | 8/01/34 | A– | 2,447,634 | |||||||||||||||
1,175 | Guitar Center Inc., 144A | 6.500% | 4/15/19 | B– | 998,750 | |||||||||||||||
1,500 | L Brands, Inc., 144A, (5) | 6.875% | 11/01/35 | BB+ | 1,541,250 | |||||||||||||||
1,250 | Neiman Marcus Mariposa Borrower / Merger Sub LLC, 144A, (5) | 8.000% | 10/15/21 | CCC+ | 925,000 | |||||||||||||||
4,485 | Signet UK Finance PLC | 4.700% | 6/15/24 | BBB– | 4,418,795 | |||||||||||||||
1,000 | The Men’s Warehouse Inc. | 7.000% | 7/01/22 | B2 | 710,000 | |||||||||||||||
Total Specialty Retail | 13,071,843 | |||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||||||||||||
3,970 | Hewlett Packard Enterprise Co, 144A, (5) | 4.900% | 10/15/25 | A– | 3,898,862 | |||||||||||||||
950 | NCR Corporation | 6.375% | 12/15/23 | BB | 935,750 | |||||||||||||||
Total Technology Hardware, Storage & Peripherals | 4,834,612 | |||||||||||||||||||
Telecommunication Services – 0.3% | ||||||||||||||||||||
2,390 | Axtel SAB de CV, 144A | 9.000% | 1/31/20 | B+ | 2,479,625 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.2% | ||||||||||||||||||||
2,195 | Levi Strauss & Company, (5) | 5.000% | 5/01/25 | BB | 2,184,025 |
Nuveen Investments | 65 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Tobacco – 0.5% | ||||||||||||||||||||
$ | 1,006 | Altria Group Inc. | 9.950% | 11/10/38 | BBB+ | $ | 1,612,716 | |||||||||||||
2,800 | Imperial Tobacco Finance, 144A | 3.500% | 2/11/23 | BBB | 2,743,779 | |||||||||||||||
Total Tobacco | 4,356,495 | |||||||||||||||||||
Trading Companies & Distributors – 0.5% | ||||||||||||||||||||
1,995 | Air Lease Corporation | 3.875% | 4/01/21 | BBB– | 2,004,975 | |||||||||||||||
2,237 | United Rentals North America Inc., (5) | 7.375% | 5/15/20 | BB– | 2,360,035 | |||||||||||||||
Total Trading Companies & Distributors | 4,365,010 | |||||||||||||||||||
Wireless Telecommunication Services – 1.8% | ||||||||||||||||||||
1,000 | Altice Financing SA, 144A | 6.625% | 2/15/23 | BB– | 987,500 | |||||||||||||||
2,000 | Colombia Telecommunicaciones S.A. ESP, 144A | 8.500% | 9/30/65 | B+ | 1,715,000 | |||||||||||||||
1,250 | Digicel Group, Limited, 144A | 8.250% | 9/30/20 | B– | 1,031,250 | |||||||||||||||
3,000 | ENTEL Chile SA, 144A | 4.750% | 8/01/26 | BBB+ | 2,806,668 | |||||||||||||||
1,000 | FairPoint Communications Inc., 144A | 8.750% | 8/15/19 | B | 985,000 | |||||||||||||||
2,100 | Millicom International Cellular SA, 144A | 6.000% | 3/15/25 | BB+ | 1,785,000 | |||||||||||||||
1,000 | Softbank Corporation, 144A, (5) | 4.500% | 4/15/20 | BB+ | 995,000 | |||||||||||||||
3,750 | Sprint Corporation | 7.250% | 9/15/21 | B+ | 2,793,748 | |||||||||||||||
1,350 | Telecom Italia SpA, 144A | 5.303% | 5/30/24 | BBB– | 1,333,125 | |||||||||||||||
1,225 | T-Mobile USA Inc. | 6.731% | 4/28/22 | BB | 1,277,063 | |||||||||||||||
1,000 | Wind Acquisition Finance SA, 144A | 4.750% | 7/15/20 | BB | 990,000 | |||||||||||||||
Total Wireless Telecommunication Services | 16,699,354 | |||||||||||||||||||
Total Corporate Bonds (cost $726,385,110) | 675,251,927 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 6.6% | ||||||||||||||||||||
Banks – 4.4% | ||||||||||||||||||||
$ | 1,000 | Banco Bilbao Vizcaya Argentaria S.A, Reg S | 9.000% | N/A (10) | BB | $ | 1,070,642 | |||||||||||||
1,625 | Bank of America Corporation | 6.250% | N/A (10) | BB+ | 1,629,063 | |||||||||||||||
4,895 | Barclays PLC | 8.250% | N/A (10) | BB+ | 5,211,711 | |||||||||||||||
2,000 | Citigroup Inc. | 8.400% | N/A (10) | BB+ | 2,179,000 | |||||||||||||||
220 | Citigroup Inc. | 5.875% | N/A (10) | BB+ | 218,350 | |||||||||||||||
30 | Citigroup Inc. | 6.250% | N/A (10) | BB+ | 30,600 | |||||||||||||||
1,525 | Fifth Third Bancorp. | 5.100% | N/A (10) | Baa3 | 1,362,969 | |||||||||||||||
2,300 | Goldman Sachs Group Inc. | 5.375% | N/A (10) | Ba1 | 2,285,625 | |||||||||||||||
2,488 | HSBC Holdings PLC | 6.375% | N/A (10) | BBB | 2,456,900 | |||||||||||||||
2,000 | ING Groep N.V, (5) | 6.000% | N/A (10) | Ba1 | 2,000,000 | |||||||||||||||
2,000 | JPMorgan Chase & Company | 6.750% | N/A (10) | BBB– | 2,180,000 | |||||||||||||||
1,248 | Lloyd’s Banking Group PLC, (5) | 7.500% | N/A (10) | BB+ | 1,329,120 | |||||||||||||||
2,000 | Nordea Bank AB, 144A | 6.125% | N/A (10) | BBB | 1,952,900 |
66 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Banks (continued) | ||||||||||||||||||||
$ | 1,500 | Royal Bank of Scotland Group PLC | 7.500% | N/A (10) | BB– | $ | 1,561,875 | |||||||||||||
2,000 | Societe Generale, 144A | 7.875% | N/A (10) | BB+ | 1,992,600 | |||||||||||||||
2,000 | Standard Chartered PLC, 144A, (5) | 6.500% | N/A (10) | BBB– | 1,932,362 | |||||||||||||||
2,620 | SunTrust Bank Inc., (5) | 5.625% | N/A (10) | Baa3 | 2,636,375 | |||||||||||||||
2,000 | UniCredit SpA, Reg S | 8.000% | N/A (10) | BB– | 1,888,948 | |||||||||||||||
3,585 | Wachovia Capital Trust III | 5.570% | N/A (10) | BBB | 3,453,251 | |||||||||||||||
3,000 | Wells Fargo & Company | 5.875% | N/A (10) | BBB | 3,157,500 | |||||||||||||||
40,036 | Total Banks | 40,529,791 | ||||||||||||||||||
Capital Markets – 0.3% | ||||||||||||||||||||
2,800 | UBS Group AG, Reg S | 7.125% | N/A (10) | BB+ | 2,932,093 | |||||||||||||||
Consumer Finance – 0.2% | ||||||||||||||||||||
1,620 | American Express Company | 5.200% | N/A (10) | Baa2 | 1,599,750 | |||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||
2,610 | BNP Paribas, 144A | 7.375% | N/A (10) | BBB– | 2,678,512 | |||||||||||||||
Electric Utilities – 0.2% | ||||||||||||||||||||
1,570 | Electricite de France, 144A | 5.250% | N/A (10) | Baa1 | 1,475,800 | |||||||||||||||
Food Products – 0.3% | ||||||||||||||||||||
2,780 | Land O’ Lakes Incorporated, 144A | 8.000% | N/A (10) | BB | 2,887,725 | |||||||||||||||
Industrial Conglomerates – 0.3% | ||||||||||||||||||||
3,086 | General Electric Company, (5) | 4.000% | N/A (10) | AA– | 3,086,250 | |||||||||||||||
1,000 | OAS Financial Limited, 144A | 8.875% | N/A (10) | N/R | 50,000 | |||||||||||||||
4,086 | Total Industrial Conglomerates | 3,136,250 | ||||||||||||||||||
Insurance – 0.6% | ||||||||||||||||||||
1,500 | Allstate Corporation | 5.750% | 8/15/53 | Baa1 | 1,542,000 | |||||||||||||||
1,985 | Genworth Financial Inc. | 6.150% | 11/15/66 | Ba2 | 535,950 | |||||||||||||||
3,000 | Sirius International Group Limited, 144A | 7.506% | N/A (10) | BBB– | 3,030,000 | |||||||||||||||
6,485 | Total Insurance | 5,107,950 | ||||||||||||||||||
$ | 61,987 | Total $1,000 Par (or similar) Institutional Preferred (cost $61,645,529) | 60,347,871 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 0.0% | ||||||||||||||||||||
$ | 370 | U.S. Treasury Notes | 2.250% | 11/15/25 | Aaa | $ | 369,172 | |||||||||||||
$ | 370 | Total U.S. Government and Agency Obligations (cost $368,439) | 369,172 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 10.2% | ||||||||||||||||||||
$ | 1,143 | 321 Henderson Receivables LLC, Series 2010-3A | 3.820% | 12/15/48 | Aaa | $ | 1,171,516 | |||||||||||||
1,250 | American Homes 4 Rent, Series 2014-SFR1 | 2.451% | 6/17/31 | Baa2 | 1,212,916 |
Nuveen Investments | 67 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,364 | American Homes 4 Rent, Series 2014-SFR2 | 3.786% | 10/17/36 | Aaa | $ | 2,378,592 | |||||||||||||
2,270 | AmeriCold LLC Trust, Series 2010 | 6.811% | 1/14/29 | A+ | 2,559,618 | |||||||||||||||
33 | Bank of America Alternative Loan Trust, Series 2005-5 2 CB1 | 6.000% | 6/25/35 | Caa1 | 31,147 | |||||||||||||||
1,200 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.367% | 9/17/48 | A– | 1,157,505 | |||||||||||||||
770 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/17/48 | BBB– | 560,285 | |||||||||||||||
2,400 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP | 4.284% | 9/12/28 | BBB– | 2,340,750 | |||||||||||||||
4,598 | Colony American Homes Trust 2014-1A | 1.400% | 5/17/31 | Aaa | 4,503,737 | |||||||||||||||
3,000 | Commercial Mortgage Pass-Through Certificates, Series 2014-SAVA | 2.731% | 6/15/34 | A | 2,987,715 | |||||||||||||||
3,940 | Commercial Mortgage Pass-Through Certificates 2015-CR22 | 4.128% | 3/12/48 | A– | 3,743,281 | |||||||||||||||
2,860 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.496% | 10/13/48 | A– | 2,702,076 | |||||||||||||||
221 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2004-24CB | 5.000% | 11/25/19 | B3 | 223,074 | |||||||||||||||
544 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2006-19CB | 6.000% | 8/25/36 | Caa3 | 496,609 | |||||||||||||||
1,345 | Countrywide Asset Backed Certificates, Series 2007-4 A2 | 5.530% | 3/25/29 | Caa1 | 1,465,686 | |||||||||||||||
477 | Countrywide Home Loan Mortgage Pass-Through Trust, Series 2004-2 | 2.409% | 2/25/34 | BB+ | 460,551 | |||||||||||||||
1,138 | Countrywide Home Loans Mortgage, Series 2005-27 | 5.500% | 1/25/23 | Caa1 | 1,062,523 | |||||||||||||||
165 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-23 | 5.750% | 9/25/33 | AA+ | 174,846 | |||||||||||||||
378 | Fannie Mae Mortgage Interest Strips 366 25, (I/O) | 5.000% | 9/01/24 | Aaa | 25,759 | |||||||||||||||
113 | Fannie Mae Mortgage Pool AL1187 | 5.500% | 7/01/24 | Aaa | 115,418 | |||||||||||||||
331 | Fannie Mae Mortgage Pool AA0005 | 5.500% | 11/01/38 | Aaa | 369,791 | |||||||||||||||
279 | Fannie Mae Mortgage Pool AA0889 | 5.500% | 12/01/38 | Aaa | 311,211 | |||||||||||||||
1,078 | Fannie Mae Mortgage Pool 255956 | 5.500% | 10/01/25 | Aaa | 1,200,539 | |||||||||||||||
124 | Fannie Mae Mortgage Pool 256890 | 6.000% | 9/01/37 | Aaa | 135,531 | |||||||||||||||
136 | Fannie Mae Mortgage Pool 725205 | 5.000% | 3/01/34 | Aaa | 150,144 | |||||||||||||||
45 | Fannie Mae Mortgage Pool 725553 | 2.346% | 9/01/33 | Aaa | 47,776 | |||||||||||||||
192 | Fannie Mae Mortgage Pool 725773 | 5.500% | 9/01/34 | Aaa | 216,692 | |||||||||||||||
75 | Fannie Mae Mortgage Pool 735060 | 6.000% | 11/01/34 | Aaa | 85,031 | |||||||||||||||
58 | Fannie Mae Mortgage Pool 735606 | 1.900% | 5/01/35 | Aaa | 60,443 | |||||||||||||||
52 | Fannie Mae Mortgage Pool 745101 | 6.000% | 4/01/32 | Aaa | 57,969 | |||||||||||||||
255 | Fannie Mae Mortgage Pool 745324 | 6.000% | 3/01/34 | Aaa | 281,903 | |||||||||||||||
267 | Fannie Mae Mortgage Pool 745548 | 2.444% | 1/01/35 | Aaa | 278,462 | |||||||||||||||
56 | Fannie Mae Mortgage Pool 824163 | 5.500% | 4/01/35 | Aaa | 62,801 | |||||||||||||||
125 | Fannie Mae Mortgage Pool 831377 | 6.500% | 4/01/36 | Aaa | 143,114 | |||||||||||||||
75 | Fannie Mae Mortgage Pool 838948 | 1.891% | 8/01/35 | Aaa | 78,091 | |||||||||||||||
51 | Fannie Mae Mortgage Pool 852909 | 6.500% | 4/01/36 | Aaa | 58,299 | |||||||||||||||
— | (11) | Fannie Mae Mortgage Pool 889618 | 5.500% | 5/01/38 | Aaa | 215 | ||||||||||||||
166 | Fannie Mae Mortgage Pool 893318 | 6.500% | 8/01/36 | Aaa | 196,925 |
68 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 19 | Fannie Mae Mortgage Pool 905597 | 5.743% | 12/01/36 | Aaa | $ | 20,356 | |||||||||||||
76 | Fannie Mae Mortgage Pool 944340 | 6.000% | 6/01/37 | Aaa | 86,284 | |||||||||||||||
57 | Fannie Mae Mortgage Pool 946228 | 6.159% | 9/01/37 | Aaa | 60,195 | |||||||||||||||
— | (11) | Fannie Mae Mortgage Pool 985344 | 5.500% | 7/01/38 | Aaa | 104 | ||||||||||||||
26,795 | Fannie Mae TBA Mortgage Pool, (WI/DD) | 3.500% | TBA | Aaa | 27,636,261 | |||||||||||||||
3,120 | Fannie Mae, Connecticut Avenue Securities, Series 2015-C03 | 5.422% | 7/25/25 | Aaa | 3,103,928 | |||||||||||||||
433 | FDIC Structures Sale Guaranteed Notes, Series 2010-S1 | 0.793% | 2/25/48 | Aaa | 433,421 | |||||||||||||||
13 | Federal Home Loan Mortgage Corporation, Mortgage Pool 1B3220 | 2.330% | 1/01/37 | Aaa | 13,803 | |||||||||||||||
4 | Federal Home Loan Mortgage Corporation, Series 2376 | 5.500% | 11/15/16 | Aaa | 3,826 | |||||||||||||||
369 | Freddie Mac Gold Pool 1L0117 | 2.765% | 10/01/29 | Aaa | 385,288 | |||||||||||||||
723 | Freddie Mac Gold Pool 1K1238 | 2.500% | 7/01/36 | Aaa | 765,825 | |||||||||||||||
169 | Freddie Mac Gold Pool 847240 | 2.390% | 7/01/30 | Aaa | 175,403 | |||||||||||||||
109 | Freddie Mac Gold Pool 847411 | 2.372% | 5/01/33 | Aaa | 113,804 | |||||||||||||||
338 | Freddie Mac Mortgage Pool, Various A17212 | 6.500% | 7/01/31 | Aaa | 389,967 | |||||||||||||||
65 | Freddie Mac Mortgage Pool, Various H09059 | 7.000% | 8/01/37 | Aaa | 71,385 | |||||||||||||||
1,405 | Freddie Mac Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2013-K712 | 3.371% | 5/25/45 | Aaa | 1,409,701 | |||||||||||||||
18 | Freddie Mac Non Gold Participation Certificates 847681 | 2.512% | 12/01/36 | Aaa | 19,457 | |||||||||||||||
3,430 | Goldman Sachs Mortgage Securities Trust, Mortgage Pass-Through Certificates, Series 2015-GC32 | 3.345% | 7/10/48 | BBB– | 2,498,282 | |||||||||||||||
79 | Government National Mortgage Association, Guaranteed REMIC Pass-Through Securities and MX Securities Trust | 4.500% | 5/16/38 | Aaa | 81,675 | |||||||||||||||
1,470 | Impac Secured Assets Corporation, Mortgage Pass-Through Certificates, Series 2000-3 | 8.000% | 10/25/30 | CCC | 1,494,354 | |||||||||||||||
251 | IndyMac INDX Mortgage Loan Trust, Pass-Through Certificates, Series 2005-AR1 | 2.502% | 3/25/35 | BBB+ | 249,924 | |||||||||||||||
3,910 | Invitation Homes Trust 2014-SFR1 | 2.951% | 6/19/31 | Baa2 | 3,852,867 | |||||||||||||||
937 | JPMorgan Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2007-S1 | 0.702% | 6/25/37 | CCC | 846,642 | |||||||||||||||
1,370 | JPMorgan Chase Commercial Mortgage Securities Trust, Pass-Through Certificates 2015-C29 | 3.702% | 5/15/48 | BBB– | 1,022,622 | |||||||||||||||
4,869 | JPMorgan Madison Avenue Securities Trust, Mortgage Pass-Through Certificates, Series 2014-1 | 2.672% | 11/25/24 | BBB– | 4,881,001 | |||||||||||||||
379 | Lehman Mortgage Trust, Mortgage Pass-Through Certificates, Series 2008-6 | 5.266% | 4/25/38 | BB+ | 382,212 | |||||||||||||||
2,749 | Master RePerforming Loan Trust 2005-1 | 7.500% | 8/25/34 | Ba3 | 2,861,802 | |||||||||||||||
230 | Merrill Lynch Mortgage Investors Inc, Commercial Mortgage Pass-Through Certificates, Series 2006 | 5.204% | 12/12/49 | AA | 236,037 | |||||||||||||||
1,000 | ML_CFC Commercial Mortgage Trust, Pass-Through Certificates, Series 2007-8 | 5.877% | 8/12/49 | BB | 1,025,157 | |||||||||||||||
1,955 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22 | 4.243% | 4/17/48 | BBB– | 1,586,993 | |||||||||||||||
115 | Oaktree Real Estate Investments, Commercial Mortgage Asset Backed Securities ORES NPL LLC 2013-LV2I, 144A | 3.081% | 9/25/25 | N/R | 115,336 | |||||||||||||||
436 | RBSSP Resecuritization Trust, Series 2012-8 1A1 | 0.419% | 10/28/36 | N/R | 421,766 |
Nuveen Investments | 69 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 118 | Residential Accredit Loans Inc., Mortgage Asset-Backed Pass-Through Certificates, Series 2005-QS12 | 5.500% | 8/25/35 | Caa2 | $ | 105,698 | |||||||||||||
385 | Wachovia Mortgage Loan Trust LLC, Mortgage Pass-Through Certificates, Series 2005-B | 2.762% | 10/20/35 | D | 334,678 | |||||||||||||||
291 | Washington Mutual Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2004-RA3 | 6.356% | 8/25/38 | AA | 307,507 | |||||||||||||||
3,430 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage-Pass-Through Certificates, Series 2015-C26 | 3.586% | 2/18/48 | BBB– | 2,552,450 | |||||||||||||||
19 | Wells Fargo Mortgage Backed Securities, 2005-AR16 Class 3A2 | 2.708% | 10/25/35 | A+ | 18,867 | |||||||||||||||
1,352 | Wells Fargo-RBS Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-C15 | 4.480% | 8/17/46 | BBB– | 1,244,246 | |||||||||||||||
$ | 96,062 | Total Asset-Backed and Mortgage-Backed Securities (cost $93,720,949) |
| 93,917,665 | ||||||||||||||||
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
SOVEREIGN DEBT – 5.6% | ||||||||||||||||||||
Colombia – 0.1% | ||||||||||||||||||||
$ | 850 | Republic of Colombia | 8.125% | 5/21/24 | BBB | $ | 1,019,150 | |||||||||||||
Costa Rica – 0.5% | ||||||||||||||||||||
5,200 | Republic of Costa Rica, 144A | 7.000% | 4/04/44 | Ba1 | 4,335,500 | |||||||||||||||
Dominican Republic – 0.4% | ||||||||||||||||||||
3,500 | Dominican Republic, 144A | 5.500% | 1/27/25 | BB– | 3,368,750 | |||||||||||||||
Indonesia – 0.3% | ||||||||||||||||||||
2,700 | Republic of Indonesia, 144A, (5) | 4.750% | 1/08/26 | BBB– | 2,666,687 | |||||||||||||||
Mexico – 2.1% | ||||||||||||||||||||
74,700 | MXN | Mexico Bonos de DeSarrollo | 8.500% | 12/13/18 | A | 4,767,979 | ||||||||||||||
72,550 | MXN | Mexico Bonos de DeSarrollo | 8.000% | 12/07/23 | A | 4,711,623 | ||||||||||||||
60,500 | MXN | Mexico Bonos de DeSarrollo | 10.000% | 12/05/24 | A | 4,419,050 | ||||||||||||||
84,800 | MXN | Mexico Bonos de DeSarrollo | 7.750% | 11/13/42 | A | 5,376,525 | ||||||||||||||
Total Mexico | 19,275,177 | |||||||||||||||||||
Portugal – 0.5% | ||||||||||||||||||||
4,300 | EUR | Portugal Obrigacoes do Tesouro, 144A, Reg S | 2.875% | 10/15/25 | Ba1 | 4,809,979 | ||||||||||||||
South Africa – 1.3% | ||||||||||||||||||||
64,000 | ZAR | Republic of South Africa | 8.000% | 12/21/18 | BBB+ | 4,038,717 | ||||||||||||||
3,250 | Republic of South Africa, (5) | 5.875% | 9/16/25 | Baa2 | 3,322,183 | |||||||||||||||
102,270 | ZAR | Republic of South Africa | 7.000% | 2/28/31 | Baa2 | 5,036,485 | ||||||||||||||
Total South Africa | 12,397,385 | |||||||||||||||||||
Sri Lanka – 0.3% | ||||||||||||||||||||
2,600 | Republic of Sri Lanka, 144A (5) | 6.850% | 11/03/25 | BB– | 2,449,140 |
70 | Nuveen Investments |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Uruguay – 0.1% | ||||||||||||||||||||
$ | 850 | Republic of Uruguay | 5.100% | 6/18/50 | BBB | $ | 733,125 | |||||||||||||
Total Sovereign Debt (cost $64,928,184) | 51,054,893 | |||||||||||||||||||
Total Long-Term Investments (cost $968,105,225) | 898,649,534 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 13.0% |
| |||||||||||||||||||
Money Market Funds – 13.0% | ||||||||||||||||||||
119,270,506 | Mount Vernon Securities Lending Trust Prime Portfolio, (13) | 0.473% (12) | $ | 119,270,506 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $119,270,506) |
| 119,270,506 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 4.8% | ||||||||||||||||||||
Money Market Funds – 4.8% | ||||||||||||||||||||
43,922,615 | First American Treasury Obligations Fund, Class Z | 0.108% (12) | $ | 43,922,615 | ||||||||||||||||
Total Short-Term Investments (cost $43,922,615) | 43,922,615 | |||||||||||||||||||
Total Investments (cost $1,131,298,346) – 115.5% | 1,061,842,655 | |||||||||||||||||||
Other Assets Less Liabilities – (15.5)% (14) | (142,261,763 | ) | ||||||||||||||||||
Net Assets – 100% | $ | 919,580,892 |
Investments in Derivatives as of December 31, 2015
Forward Foreign Currency Exchange Contracts outstanding:
Counterparty | Currency Contracts to Deliver | Amount (Local Currency) | In Exchange For Currency | Amount (Local Currency) | Settlement Date | Unrealized Appreciation | ||||||||||||||||
Bank of America, N.A. | Euro | 4,938,000 | U.S. Dollar | 5,438,338 | 1/29/16 | $ | 68,018 | |||||||||||||||
Bank of America, N.A. | Mexican Peso | 339,710,000 | U.S. Dollar | 19,878,869 | 1/29/16 | 210,350 | ||||||||||||||||
Bank of America, N.A. | Pound Sterling | 1,530,000 | U.S. Dollar | 2,331,491 | 1/22/16 | 75,831 | ||||||||||||||||
Bank of America, N.A. | U.S. Dollar | 91,560 | Euro | 84,000 | 1/29/16 | (206 | ) | |||||||||||||||
Bank of America, N.A. | U.S. Dollar | 183,066 | Mexican Peso | 3,180,000 | 1/29/16 | 1,050 | ||||||||||||||||
Goldman Sachs Bank USA | Canadian Dollar | 7,559,000 | U.S. Dollar | 5,590,976 | 1/29/16 | 127,745 | ||||||||||||||||
Goldman Sachs Bank USA | U.S. Dollar | 367,557 | Canadian Dollar | 510,000 | 1/29/16 | 1,043 | ||||||||||||||||
Nomura International PLC | South African Rand | 421,950,000 | U.S. Dollar | 28,804,407 | 1/29/16 | 1,668,156 | ||||||||||||||||
Nomura International PLC | U.S. Dollar | 4,811,386 | South African Rand | 76,400,000 | 1/29/16 | 102,015 | ||||||||||||||||
Nomura International PLC | U.S. Dollar | 13,013,845 | South African Rand | 206,600,000 | 1/29/16 | 272,917 | ||||||||||||||||
$ | 2,526,919 |
Interest Rate Swaps outstanding:
Counterparty | Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Termination Date | Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | $ | 21,000,000 | Receive | 3-Month USD- LIBOR-ICE | 2.113 | % | Semi- Annually | 2/21/22 | $ | (477,249 | ) | N/A | $ | (477,249 | ) | |||||||||||||||||||||
JPMorgan Chase Bank, N.A. | 10,800,000 | Receive | 3-Month USD- LIBOR-ICE | 2.078 | Semi- Annually | 2/19/23 | (168,391 | ) | N/A | (168,391 | ) | |||||||||||||||||||||||||
Morgan Stanley Capital Services LLC* | 26,000,000 | Receive | 3-Month USD- LIBOR-ICE | 2.743 | Semi- Annually | 4/15/24 | (1,458,532 | ) | $ | 1,450,820 | (1,458,532 | ) | ||||||||||||||||||||||||
$ | 57,800,000 | $ | (2,104,172 | ) | $ | 1,450,820 | $ | (2,104,172 | ) |
* | Citigroup Global Markets, Inc. is the clearing broker for this transaction. |
Nuveen Investments | 71 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value* | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Euro-Bund | Long | 45 | 3/16 | $ | 7,722,921 | $ | 102 | $ | (17,271 | ) | ||||||||||||||
U.S. Treasury 10-Year Note | Short | (1,564 | ) | 3/16 | (196,917,375 | ) | (464,303 | ) | 611,357 | |||||||||||||||
U.S. Treasury Long Bond | Long | 14 | 3/16 | 2,152,500 | 7,000 | 2,053 | ||||||||||||||||||
U.S. Treasury Ultra Bond | Long | 276 | 3/16 | 43,797,750 | 276,000 | 296,897 | ||||||||||||||||||
$ | (143,244,204 | ) | $ | (181,201 | ) | $ | 893,036 |
* | Total aggregate Notional Amount at Value of long and short positions is $53,673,171 and $(196,917,375), 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) | Investment valued at fair value using methods determined in good faith by, or at discretion of, the Board. 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. |
(4) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(5) | Investment, or a 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 $114,782,278. |
(6) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
(7) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
(8) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
(9) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(10) | Perpetual security. Maturity date is not applicable. |
(11) | Principal Amount (000) rounds to less than $1,000. |
(12) | The rate shown is the annualized seven-day effective yield as of the end of the reporting period. |
(13) | 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 100% 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. |
(14) | Other assets less liabilities includes the unrealized appreciation (depreciation) of over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
(15) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(I/O) | Interest only. |
GDR | Global Depositary Receipt |
RegS | 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. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
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. |
(WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Pound Sterling |
MXN | Mexican Peso |
ZAR | South African Rand |
See accompanying notes to financial statements.
72 | Nuveen Investments |
Nuveen U.S. Infrastructure Bond Fund
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 98.1% | ||||||||||||||||||||
CORPORATE BONDS – 33.9% | ||||||||||||||||||||
Commercial Services & Supplies – 1.7% | ||||||||||||||||||||
$ | 50 | ADS Waste Holdings Inc. | 8.250% | 10/01/20 | CCC+ | $ | 50,375 | |||||||||||||
50 | Casella Waste Systems Inc. | 7.750% | 2/15/19 | B– | 49,625 | |||||||||||||||
40 | Covanta Holding Corporation | 5.875% | 3/01/24 | Ba3 | 36,200 | |||||||||||||||
140 | Total Commercial Services & Supplies | 136,200 | ||||||||||||||||||
Construction & Engineering – 0.6% | ||||||||||||||||||||
50 | AECOM Technology Corporation | 5.875% | 10/15/24 | BB– | 51,000 | |||||||||||||||
Diversified Telecommunication Services – 1.9% | ||||||||||||||||||||
50 | CyrusOne LP Finance | 6.375% | 11/15/22 | B+ | 51,500 | |||||||||||||||
50 | Qualitytech LP/QTS Finance Corp. | 5.875% | 8/01/22 | BB– | 51,000 | |||||||||||||||
50 | SBA Communications Corporation | 4.875% | 7/15/22 | B | 49,250 | |||||||||||||||
150 | Total Diversified Telecommunication Services | 151,750 | ||||||||||||||||||
Electric Utilities – 4.4% | ||||||||||||||||||||
65 | Exelon Generation Co. LLC | 4.250% | 6/15/22 | BBB | 65,860 | |||||||||||||||
95 | Mississippi Power Company | 4.250% | 3/15/42 | A– | 72,628 | |||||||||||||||
40 | Northern States Power Company | 2.600% | 5/15/23 | Aa3 | 38,989 | |||||||||||||||
70 | PPL Capital Funding Inc. | 3.500% | 12/01/22 | BBB+ | 70,551 | |||||||||||||||
60 | PPL Energy Supply LLC, 144A | 6.500% | 6/01/25 | Ba3 | 39,600 | |||||||||||||||
70 | Progress Energy, Inc. | 3.150% | 4/01/22 | BBB+ | 68,742 | |||||||||||||||
400 | Total Electric Utilities | 356,370 | ||||||||||||||||||
Energy Equipment & Services – 0.4% | ||||||||||||||||||||
50 | Compressco Partners LP / Compressco Finance Corporation | 7.250% | 8/15/22 | B | 37,000 | |||||||||||||||
Gas Utilities – 1.3% | ||||||||||||||||||||
50 | AmeriGas Finance LLC | 7.000% | 5/20/22 | Ba2 | 48,375 | |||||||||||||||
20 | Ferrellgas LP | 6.750% | 1/15/22 | B+ | 16,850 | |||||||||||||||
50 | Suburban Propane Partners LP | 5.750% | 3/01/25 | BB– | 40,500 | |||||||||||||||
120 | Total Gas Utilities | 105,725 | ||||||||||||||||||
Health Care Equipment & Supplies – 0.6% | ||||||||||||||||||||
55 | Tenet Healthcare Corporation | 6.750% | 2/01/20 | B3 | 52,250 | |||||||||||||||
Health Care Providers & Services – 4.4% | ||||||||||||||||||||
50 | Acadia Healthcare | 5.625% | 2/15/23 | B– | 47,250 | |||||||||||||||
50 | Community Health Systems, Inc. | 6.875% | 2/01/22 | B+ | 47,438 | |||||||||||||||
75 | HCA Inc. | 5.375% | 2/01/25 | BB | 74,063 | |||||||||||||||
50 | IASIS Healthcare Capital Corporation | 8.375% | 5/15/19 | CCC+ | 46,000 |
Nuveen Investments | 73 |
Nuveen U.S. Infrastructure Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Health Care Providers & Services (continued) | ||||||||||||||||||||
$ | 50 | Kindred Healthcare Inc. | 6.375% | 4/15/22 | B2 | $ | 41,500 | |||||||||||||
60 | Select Medical Corporation | 6.375% | 6/01/21 | B– | 52,500 | |||||||||||||||
50 | Surgical Care Affiliates Inc., 144A | 6.000% | 4/01/23 | B– | 48,750 | |||||||||||||||
385 | Total Health Care Providers & Services | 357,501 | ||||||||||||||||||
Independent Power & Renewable Electricity Producers – 1.2% | ||||||||||||||||||||
50 | Dynegy Inc. | 7.625% | 11/01/24 | B+ | 42,740 | |||||||||||||||
65 | GenOn Energy Inc. | 9.500% | 10/15/18 | B– | 52,509 | |||||||||||||||
115 | Total Independent Power & Renewable Electricity Producers | 95,249 | ||||||||||||||||||
Internet Software & Services – 0.5% | ||||||||||||||||||||
40 | Equinix Inc. | 5.750% | 1/01/25 | BB | 40,900 | |||||||||||||||
IT Services – 0.6% | ||||||||||||||||||||
50 | Zayo Group LLC / Zayo Capital Inc. | 6.000% | 4/01/23 | B– | 47,250 | |||||||||||||||
Multi-Utilities – 1.2% | ||||||||||||||||||||
100 | Public Service Electric & Gas Company | 4.050% | 5/01/45 | Aa3 | 97,928 | |||||||||||||||
Oil, Gas & Consumable Fuels – 9.3% | ||||||||||||||||||||
90 | Berkshire Hathaway Energy Company | 3.750% | 11/15/23 | A3 | 92,366 | |||||||||||||||
70 | Calumet Specialty Products | 7.625% | 1/15/22 | B+ | 59,500 | |||||||||||||||
25 | Crestwood Midstream Partners LP | 6.125% | 3/01/22 | BB | 17,375 | |||||||||||||||
50 | Energy Transfer Equity LP | 5.500% | 6/01/27 | BB+ | 38,000 | |||||||||||||||
70 | Enterprise Products Operating Group LLP | 3.350% | 3/15/23 | BBB+ | 63,324 | |||||||||||||||
50 | Global Partners LP/GLP Finance | 6.250% | 7/15/22 | B+ | 40,000 | |||||||||||||||
70 | Kinder Morgan Energy Partners, LP | 3.500% | 9/01/23 | BBB– | 58,071 | |||||||||||||||
56 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 49,280 | |||||||||||||||
55 | MPLX LP | 4.000% | 2/15/25 | BBB– | 46,245 | |||||||||||||||
50 | NGL Energy Partners LP/Fin Co | 5.125% | 7/15/19 | BB– | 39,500 | |||||||||||||||
10 | NGL Energy Partners LP/Fin Co | 6.875% | 10/15/21 | BB– | 7,500 | |||||||||||||||
10 | Northern Tier Energy LLC | 7.125% | 11/15/20 | BB– | 10,100 | |||||||||||||||
85 | Rose Rock Midstream LP / Rose Rock Finance Corporation | 5.625% | 7/15/22 | B1 | 60,350 | |||||||||||||||
25 | Sabine Pass Liquefaction LLC | 6.250% | 3/15/22 | BB+ | 23,125 | |||||||||||||||
100 | Southeast Supply Header LLC, 144A | 4.250% | 6/15/24 | BBB– | 95,962 | |||||||||||||||
15 | Summit Midstream Holdings LLC Finance | 7.500% | 7/01/21 | B | 12,750 | |||||||||||||||
50 | Western Refining Inc. | 6.250% | 4/01/21 | B+ | 48,000 | |||||||||||||||
881 | Total Oil, Gas & Consumable Fuels | 761,448 | ||||||||||||||||||
Real Estate Investment Trust – 1.9% | ||||||||||||||||||||
100 | American Tower Company | 5.000% | 2/15/24 | BBB | 105,860 | |||||||||||||||
60 | Communications Sales & Leasing Inc. | 8.250% | 10/15/23 | BB | 51,150 | |||||||||||||||
160 | Total Real Estate Investment Trust | 157,010 |
74 | Nuveen Investments |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Road & Rail – 3.9% | ||||||||||||||||||||
$ | 95 | Burlington Northern Santa Fe Corporation | 4.375% | 9/01/42 | A3 | $ | 89,815 | |||||||||||||
90 | Norfolk Southern Corporation | 3.850% | 1/15/24 | BBB+ | 91,684 | |||||||||||||||
85 | Union Pacific Corporation | 4.750% | 12/15/43 | A | 91,394 | |||||||||||||||
50 | Watco Companies LLC Finance, 144A | 6.375% | 4/01/23 | B | 49,250 | |||||||||||||||
320 | Total Road & Rail | 322,143 | ||||||||||||||||||
$ | 3,016 | Total Corporate Bonds (cost $3,049,983) | 2,769,724 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (3) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 64.2% | ||||||||||||||||||||
Arizona – 4.2% | ||||||||||||||||||||
$ | 110 | Phoenix, Arizona, Various Purpose General Obligation Bonds, Build America Taxable Bonds, Series 2009A, 5.269%, 7/01/34 | No Opt. Call | AA+ | $ | 128,855 | ||||||||||||||
80 | Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Build America Bonds, Series 2010A, 4.839%, 1/01/41 | No Opt. Call | Aa1 | 91,409 | ||||||||||||||||
105 | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc Prepay Contract Obligations, Series 2007, 5.250%, 12/01/28 | No Opt. Call | BBB+ | 126,634 | ||||||||||||||||
295 | Total Arizona | 346,898 | ||||||||||||||||||
California – 12.9% | ||||||||||||||||||||
275 | Alameda Corridor Transportation Authority, California, User Fee Revenue Bonds, Subordinate Lien Series 2004B, 0.000%, 10/01/31 – AMBAC Insured | No Opt. Call | BBB+ | 104,896 | ||||||||||||||||
100 | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Build America Federally Taxable Bond Series 2009F-2, 6.263%, 4/01/49 | No Opt. Call | AA | 134,873 | ||||||||||||||||
100 | California State, Various Purpose General Obligation Bonds, Build America Federally Taxable Bonds, Series 2009, 7.550%, 4/01/39 | No Opt. Call | AA– | 145,745 | ||||||||||||||||
110 | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Build America Taxable Bonds, Series 2009C, 6.582%, 5/15/39 | No Opt. Call | AA– | 141,266 | ||||||||||||||||
100 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Federally Taxable – Direct Payment – Build America Bonds, Series 2010A, 5.716%, 7/01/39 | No Opt. Call | AA– | 120,809 | ||||||||||||||||
10 | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Build America Taxable Bonds, Series 2009C, 6.008%, 7/01/39 | No Opt. Call | AA | 12,252 | ||||||||||||||||
95 | Sacramento Municipal Utility District, California, Electric Revenue Bonds, Federally Taxable Build America Bonds, Series 2010W, 6.156%, 5/15/36 | No Opt. Call | AA– | 115,729 | ||||||||||||||||
130 | San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Build America Taxable Bonds, Series 2010E, 6.000%, 11/01/40 | No Opt. Call | AA– | 158,918 | ||||||||||||||||
100 | University of California, General Revenue Bonds, Build America Taxable Bonds, Series 2009R, 5.770%, 5/15/43 | No Opt. Call | AA | 122,334 | ||||||||||||||||
1,020 | Total California | 1,056,822 | ||||||||||||||||||
Colorado – 2.1% | ||||||||||||||||||||
100 | Colorado Springs, Colorado, Utilities System Revenue Bonds, Improvement, Build America Bond Series 2010D-4, 6.615%, 11/15/40 | No Opt. Call | AA | 133,046 |
Nuveen Investments | 75 |
Nuveen U.S. Infrastructure Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Optional Call Provisions (3) | Ratings (2) | Value | ||||||||||||||
Colorado (continued) | ||||||||||||||||||
$ | 100 | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Refunding Series 2006B, 0.000%, 9/01/35 – NPFG Insured | 9/26 at 63.78 | AA– | $ | 42,220 | ||||||||||||
200 | Total Colorado | 175,266 | ||||||||||||||||
Illinois – 9.1% | ||||||||||||||||||
70 | Chicago Greater Metropolitan Water Reclamation District, Illinois, General Obligation Bonds, Build America Taxable Bonds, Series 2009, 5.720%, 12/01/38 | No Opt. Call | AAA | 80,560 | ||||||||||||||
105 | Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B, 6.200%, 12/01/40 | No Opt. Call | AA | 113,591 | ||||||||||||||
100 | Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien, Build America Taxable Bond Series 2010B, 6.845%, 1/01/38 | 1/20 at 100.00 | A | 112,132 | ||||||||||||||
110 | Illinois State, General Obligation Bonds, Taxable Build America Bonds, Series 2010-1, 6.630%, 2/01/35 | No Opt. Call | A– | 113,967 | ||||||||||||||
150 | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Build America Taxable Bonds, Senior Lien Series 2009A, 6.184%, 1/01/34 | No Opt. Call | AA– | 187,100 | ||||||||||||||
120 | Northern Illinois Municipal Power Agency, Power Project Revenue Bonds, Prairie State Project, Build America Bond Series 2009C, 6.859%, 1/01/39 | No Opt. Call | A2 | 138,577 | ||||||||||||||
655 | Total Illinois | 745,927 | ||||||||||||||||
Kansas – 1.0% | ||||||||||||||||||
75 | Kansas Department of Transportation, Highway Revenue Bonds, Build America Taxable Bond Series 2010A, 4.596%, 9/01/35 | No Opt. Call | AAA | 81,291 | ||||||||||||||
Louisiana – 1.6% | ||||||||||||||||||
120 | East Baton Rouge Sewerage Commission, Louisiana, Revenue Bonds, Build America Taxable Bonds, Series 2010B, 6.087%, 2/01/45 | 2/20 at 100.00 | AA | 132,096 | ||||||||||||||
Massachusetts – 0.2% | ||||||||||||||||||
10 | Massachusetts State, General Obligation Bonds, Consolidated Loan, Build America Taxable Bonds, Series 2010, 5.456%, 12/01/39 | No Opt. Call | AA+ | 12,090 | ||||||||||||||
Missouri – 0.9% | ||||||||||||||||||
60 | Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds, Plum Point Project, Build America Bond Series 2009A, 7.730%, 1/01/39 | No Opt. Call | A | 76,117 | ||||||||||||||
New Jersey – 4.8% | ||||||||||||||||||
50 | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999, 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | BB– | 54,799 | ||||||||||||||
25 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Build America Bonds Issuer Subsidy Program, Series 2009B, 6.875%, 12/15/39 | 6/19 at 100.00 | A– | 26,252 | ||||||||||||||
100 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Build America Bonds Issuer Subsidy Program, Series 2010C, 6.104%, 12/15/28 | 12/20 at 100.00 | A– | 104,523 | ||||||||||||||
150 | New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2010A, 7.102%, 1/01/41 | No Opt. Call | A+ | 207,125 | ||||||||||||||
325 | Total New Jersey | 392,699 | ||||||||||||||||
New York – 7.5% | ||||||||||||||||||
105 | Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Build America Taxable Bonds, Series 2010A-2, 6.089%, 11/15/40 | No Opt. Call | AA | 133,081 |
76 | Nuveen Investments |
Principal Amount (000) | Description (1) | Optional Call Provisions (3) | Ratings (2) | Value | ||||||||||||||
New York (continued) | ||||||||||||||||||
$ | 100 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Build America Taxable Bonds, Series 2010B-1, 6.648%, 11/15/39 | No Opt. Call | AA– | $ | 130,309 | ||||||||||||
100 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Build America Taxable Bonds, Fiscal 2011 Series AA, 5.790%, 6/15/41 | 6/20 at 100.00 | AA+ | 110,348 | ||||||||||||||
100 | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Build America Taxable Bond Fiscal 2011 Series 2010S-1B, 6.828%, 7/15/40 | No Opt. Call | AA | 132,276 | ||||||||||||||
100 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Eighty-First Series 2014, 4.960%, 8/01/46 | No Opt. Call | AA– | 108,369 | ||||||||||||||
505 | Total New York | 614,383 | ||||||||||||||||
Ohio – 4.2% | ||||||||||||||||||
100 | American Municipal Power Inc., Ohio, Combined Hydroelectric Projects Revenue Bonds, Build America Bond Series 2009B, 6.449%, 2/15/44 | No Opt. Call | A | 119,454 | ||||||||||||||
100 | JobsOhio Beverage System, Ohio, Statewide Liquor Profits Revenue Bonds, Senior Lien Taxable Series 2013B, 4.532%, 1/01/35 | No Opt. Call | AA | 106,165 | ||||||||||||||
105 | Ohio State University, General Receipts Bonds, Build America Taxable Bond Series 2010C, 4.910%, 6/01/40 | No Opt. Call | Aa1 | 118,103 | ||||||||||||||
305 | Total Ohio | 343,722 | ||||||||||||||||
Oregon – 1.5% | ||||||||||||||||||
100 | Oregon State Department of Transportation, Highway User Tax Revenue Bonds, Federally Taxable Build America Bonds, Series 2010A, 5.834%, 11/15/34 | No Opt. Call | AA+ | 125,977 | ||||||||||||||
Pennsylvania – 3.0% | ||||||||||||||||||
100 | Commonwealth Financing Authority, Pennsylvania, State Appropriation Lease Bonds, Build America Taxable Bonds, Series 2009D, 6.218%, 6/01/39 | No Opt. Call | A+ | 116,404 | ||||||||||||||
100 | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Build America Taxable Bonds, Series 2009A, 6.105%, 12/01/39 | No Opt. Call | A1 | 124,164 | ||||||||||||||
200 | Total Pennsylvania | 240,568 | ||||||||||||||||
Tennessee – 1.6% | ||||||||||||||||||
100 | Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Subordinate Lien Series 2010B, 6.731%, 7/01/43 | No Opt. Call | Aa3 | 127,362 | ||||||||||||||
Texas – 5.0% | ||||||||||||||||||
40 | Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Build America Taxable Bond Series 2010B, 4.922%, 12/01/41 | No Opt. Call | AA+ | 45,726 | ||||||||||||||
100 | Dallas County Hospital District, Texas, General Obligation Limited Tax Bonds, Build America Taxable Bonds, Series 2009C, 5.621%, 8/15/44 | No Opt. Call | AA+ | 123,807 | ||||||||||||||
100 | North Texas Tollway Authority, System Revenue Bonds, Taxable Build America Bonds, Series 2010-B2, 8.910%, 2/01/30 | 2/20 at 100.00 | Baa2 | 118,587 | ||||||||||||||
95 | Texas Private Activity Bond Surface Transportation Corporation, Senior Lien Revenue Bonds, LBJ Infrastructure Group LLC IH-635 Managed Lanes Project, Series 2010, 7.500%, 6/30/33 | 6/20 at 100.00 | Baa3 | 117,887 | ||||||||||||||
335 | Total Texas | 406,007 |
Nuveen Investments | 77 |
Nuveen U.S. Infrastructure Bond Fund (continued)
Portfolio of Investments | December 31, 2015 (Unaudited) |
Principal Amount (000) | Description (1) | Optional Call Provisions (3) | Ratings (2) | Value | ||||||||||||||
Virginia – 3.1% | ||||||||||||||||||
$ | 100 | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Second Senior Lien Revenue Bonds, Build America Bonds, Series 2009D, 7.462%, 10/01/46 – AGC Insured | No Opt. Call | BBB+ | $ | 134,823 | ||||||||||||
100 | Virginia Transportation Board, Transportation Revenue Bonds, Capital Projects, Build America Taxable Bonds, Series 2010A-2, 5.350%, 5/15/35 | No Opt. Call | AA+ | 115,253 | ||||||||||||||
200 | Total Virginia | 250,076 | ||||||||||||||||
Washington – 1.5% | ||||||||||||||||||
100 | Central Puget Sound Regional Transit Authority, Washington, Sales and Use Tax Revenue Bonds, Build America Taxable Bonds, Series 2009S-2T, 5.491%, 11/01/39 | No Opt. Call | AAA | 122,240 | ||||||||||||||
$ | 4,605 | Total Municipal Bonds (cost $5,167,680) | 5,249,541 | |||||||||||||||
Total Long-Term Investments (cost $8,217,663) | 8,019,265 | |||||||||||||||||
Other Assets Less Liabilities – 1.9% (4) | 152,369 | |||||||||||||||||
Net Assets – 100% | $ | 8,171,634 |
Investments in Derivatives as of December 31, 2015
Futures Contracts outstanding:
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount at Value | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
U.S. Treasury Long Bond | Short | (7 | ) | 3/16 | $ | (1,076,250 | ) | $ | (3,500 | ) | $ | 1,177 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(4) | Other assets less liabilities includes the unrealized appreciation (depreciation) of the over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
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 transactions with qualified institutional buyers. |
See accompanying notes to financial statements.
78 | Nuveen Investments |
Assets and Liabilities | December 31, 2015 (Unaudited) |
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Assets | ||||||||||||||||
Long-term investments, at value (cost $14,900,307, $428,822,528, $968,105,225 and $8,217,663, respectively) | $ | 13,711,383 | $ | 336,255,249 | $ | 898,649,534 | $ | 8,019,265 | ||||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | — | 20,019,220 | 119,270,506 | — | ||||||||||||
Short-term investments, at value (cost approximates value) | 887,323 | 15,854,091 | 43,922,615 | — | ||||||||||||
Cash denominated in foreign currencies (cost $31,780, $160,035, $1,418,406 and $—, respectively) | 31,532 | 161,550 | 1,387,389 | — | ||||||||||||
Cash | — | — | — | 30,235 | ||||||||||||
Cash collateral at brokers(1) | 64,225 | 154,400 | 2,165,268 | 27,720 | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts, net | 16,421 | 355,221 | 2,526,919 | — | ||||||||||||
Receivable for: | ||||||||||||||||
Dividends | 1,359 | 235,646 | 70,392 | — | ||||||||||||
Due from broker | — | 23,189 | 45,841 | — | ||||||||||||
Interest | 162,660 | 7,632,284 | 12,198,276 | 119,148 | ||||||||||||
Investments sold | 505,225 | 1,050,496 | 68,881 | — | ||||||||||||
Reclaims | 5,088 | — | — | — | ||||||||||||
Reimbursement from Adviser | 7,740 | — | — | 3,766 | ||||||||||||
Shares sold | 25,685 | 1,742,042 | 1,514,268 | 2,052 | ||||||||||||
Variation margin on futures contracts | — | 43,343 | 283,102 | — | ||||||||||||
Variation margin on swap contracts | — | — | 1,450,820 | — | ||||||||||||
Other assets | 11,981 | 97,375 | 77,546 | 15,314 | ||||||||||||
Total assets | 15,430,622 | 383,624,106 | 1,083,631,357 | 8,217,500 | ||||||||||||
Liabilities | ||||||||||||||||
Cash overdraft | — | 12 | 15 | — | ||||||||||||
Unrealized depreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 46,594 | — | — | — | ||||||||||||
Interest rate swaps | 4,795 | — | 645,640 | — | ||||||||||||
Payable for: | ||||||||||||||||
Collateral from securities lending program | — | 20,019,220 | 119,270,506 | — | ||||||||||||
Dividends | 42,913 | 1,273,422 | 1,787,968 | 24,624 | ||||||||||||
Investments purchased | 1,404,364 | — | 36,973,289 | — | ||||||||||||
Shares redeemed | 3,049 | 4,536,196 | 4,041,118 | 583 | ||||||||||||
Variation margin on futures contracts | 1,266 | 13,922 | 464,303 | 3,500 | ||||||||||||
Variation margin on swap contracts | 4,550 | — | — | — | ||||||||||||
Accrued expenses: | ||||||||||||||||
Management fees | — | 202,418 | 327,101 | — | ||||||||||||
Directors/Trustees fees | 86 | 30,711 | 35,929 | 44 | ||||||||||||
12b-1 distribution and service fees | 488 | 56,968 | 138,436 | 156 | ||||||||||||
Other | 57,563 | 220,596 | 366,160 | 16,959 | ||||||||||||
Total liabilities | 1,565,668 | 26,353,465 | 164,050,465 | 45,866 | ||||||||||||
Net assets | $ | 13,864,954 | $ | 357,270,641 | $ | 919,580,892 | $ | 8,171,634 |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
Nuveen Investments | 79 |
Statement of Assets and Liabilities (Unaudited) (continued)
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Class A Shares | ||||||||||||||||
Net assets | $ | 1,387,278 | $ | 90,852,349 | $ | 231,212,532 | $ | 526,854 | ||||||||
Shares outstanding | 80,015 | 13,206,805 | 22,692,989 | 27,561 | ||||||||||||
Net asset value (“NAV”) per share | $ | 17.34 | $ | 6.88 | $ | 10.19 | $ | 19.12 | ||||||||
Offering price per share (NAV per share plus maximum sales charge of 4.75%, | $ | 18.20 | $ | 7.22 | $ | 10.64 | $ | 19.97 | ||||||||
Class C Shares | ||||||||||||||||
Net assets | $ | 199,249 | $ | 38,853,289 | $ | 96,674,962 | $ | 47,808 | ||||||||
Shares outstanding | 11,437 | 5,656,320 | 9,545,109 | 2,500 | ||||||||||||
NAV and offering price per share | $ | 17.42 | $ | 6.87 | $ | 10.13 | $ | 19.12 | ||||||||
Class R3 Shares | ||||||||||||||||
Net assets | $ | 42,600 | $ | 833,993 | $ | 8,472,219 | $ | — | ||||||||
Shares outstanding | 2,449 | 118,767 | 828,451 | — | ||||||||||||
NAV and offering price per share | $ | 17.39 | $ | 7.02 | $ | 10.23 | $ | — | ||||||||
Class R6 Shares | ||||||||||||||||
Net assets | $ | — | $ | — | $ | 32,504,246 | $ | — | ||||||||
Shares outstanding | — | — | 3,191,589 | — | ||||||||||||
NAV and offering price per share | $ | — | $ | — | $ | 10.18 | $ | — | ||||||||
Class I Shares | ||||||||||||||||
Net assets | $ | 12,235,827 | $ | 226,731,010 | $ | 550,716,933 | $ | 7,596,972 | ||||||||
Shares outstanding | 703,049 | 32,876,721 | 54,095,539 | 397,406 | ||||||||||||
NAV and offering price per share | $ | 17.40 | $ | 6.90 | $ | 10.18 | $ | 19.12 | ||||||||
Net assets consist of: | ||||||||||||||||
Capital paid-in | $ | 16,644,132 | $ | 519,987,862 | $ | 1,053,285,686 | $ | 8,575,059 | ||||||||
Undistributed (Over-distribution of) net investment income | (478,903 | ) | 4,034,209 | 13,695,708 | (30,745 | ) | ||||||||||
Accumulated net realized gain (loss) | (1,054,383 | ) | (74,557,991 | ) | (79,279,922 | ) | (175,459 | ) | ||||||||
Net unrealized appreciation (depreciation) | (1,245,892 | ) | (92,193,439 | ) | (68,120,580 | ) | (197,221 | ) | ||||||||
Net assets | $ | 13,864,954 | $ | 357,270,641 | $ | 919,580,892 | $ | 8,171,634 | ||||||||
Authorized shares – per class | Unlimited | 2 billion | 2 billion | Unlimited | ||||||||||||
Par value per share | $ | 0.01 | $ | 0.0001 | $ | 0.0001 | $ | 0.01 |
See accompanying notes to financial statements.
80 | Nuveen Investments |
Operations | Six Months Ended December 31, 2015 (Unaudited) |
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Investment Income | ||||||||||||||||
Dividend income (net of foreign tax withheld of $—, $338, $— and $—, respectively) | $ | 8,972 | $ | 1,632,604 | $ | 595,126 | $ | — | ||||||||
Interest income (net of foreign tax withheld of $—, $1,476, $138 and $—, respectively) | 377,702 | 20,988,918 | 29,628,517 | 203,765 | ||||||||||||
Securities lending income, net | — | 189,777 | 269,401 | — | ||||||||||||
Total investment income | 386,674 | 22,811,299 | 30,493,044 | 203,765 | ||||||||||||
Expenses | ||||||||||||||||
Management fees | 45,033 | 1,526,013 | 2,822,389 | 25,297 | ||||||||||||
12b-1 service fees – Class A Shares | 1,956 | 147,147 | 332,048 | 437 | ||||||||||||
12b-1 distribution and service fees – Class C Shares | 945 | 240,581 | 532,105 | 357 | ||||||||||||
12b-1 distribution and service fees – Class R3 Shares | 110 | 2,430 | 29,274 | — | ||||||||||||
Shareholder servicing agent fees | 1,430 | 229,106 | 429,830 | 1,661 | ||||||||||||
Custodian fees | 37,136 | 83,101 | 164,756 | 17,821 | ||||||||||||
Directors/Trustees fees | 204 | 6,723 | 14,396 | 103 | ||||||||||||
Professional fees | 21,397 | 35,688 | 62,677 | 7,390 | ||||||||||||
Shareholder reporting expenses | 10,939 | 27,946 | 67,955 | 5,268 | ||||||||||||
Federal and state registration fees | 23,038 | 43,275 | 72,116 | 21,131 | ||||||||||||
Other | 6,243 | 91,869 | 23,479 | 2,470 | ||||||||||||
Total expenses before fee waiver/expense reimbursement | 148,431 | 2,433,879 | 4,551,025 | 81,935 | ||||||||||||
Fee waiver/expense reimbursement | (88,457 | ) | — | (529,309 | ) | (52,141 | ) | |||||||||
Net expenses | 59,974 | 2,433,879 | 4,021,716 | 29,794 | ||||||||||||
Net investment income (loss) | 326,700 | 20,377,420 | 26,471,328 | 173,971 | ||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments and foreign currency | (1,071,039 | ) | (44,784,791 | ) | (40,208,644 | ) | (58,864 | ) | ||||||||
Forward foreign currency exchange contracts | 206,968 | 1,991,908 | 11,065,782 | — | ||||||||||||
Futures contracts | (5,490 | ) | 25,266 | (2,646,881 | ) | (12,194 | ) | |||||||||
Swaps | (18,736 | ) | (1,288,860 | ) | (3,869,940 | ) | — | |||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments and foreign currency | (36,389 | ) | (51,154,647 | ) | (45,164,647 | ) | (103,203 | ) | ||||||||
Forward foreign currency exchange contracts | 77,055 | 182,103 | 1,919,659 | — | ||||||||||||
Futures contracts | (19,688 | ) | 302,559 | 1,296,817 | (28,119 | ) | ||||||||||
Swaps | (26,647 | ) | 250,790 | (274,558 | ) | — | ||||||||||
Net realized and unrealized gain (loss) | (893,966 | ) | (94,475,672 | ) | (77,882,412 | ) | (202,380 | ) | ||||||||
Net increase (decrease) in net assets from operations | $ | (567,266 | ) | $ | (74,098,252 | ) | $ | (51,411,084 | ) | $ | (28,409 | ) |
See accompanying notes to financial statements.
Nuveen Investments | 81 |
Changes in Net Assets | (Unaudited) |
Global Total Return Bond | High Income Bond | |||||||||||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | Six Months Ended | Year Ended 6/30/15 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 326,700 | $ | 782,049 | $ | 20,377,420 | $ | 52,325,710 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments and foreign currency | (1,071,039 | ) | (326,542 | ) | (44,784,791 | ) | (34,123,226 | ) | ||||||||||
Forward foreign currency exchange contracts | 206,968 | (250,808 | ) | 1,991,908 | 13,219,277 | |||||||||||||
Futures contracts | (5,490 | ) | (182,445 | ) | 25,266 | (578,896 | ) | |||||||||||
Swaps | (18,736 | ) | 13,589 | (1,288,860 | ) | (1,827,472 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments and foreign currency | (36,389 | ) | (1,418,081 | ) | (51,154,647 | ) | (73,863,867 | ) | ||||||||||
Forward foreign currency exchange contracts | 77,055 | (103,660 | ) | 182,103 | 146,922 | |||||||||||||
Futures contracts | (19,688 | ) | 13,462 | 302,559 | (352,543 | ) | ||||||||||||
Swaps | (26,647 | ) | (28,185 | ) | 250,790 | 320,392 | ||||||||||||
Net increase (decrease) in net assets from operations | (567,266 | ) | (1,500,621 | ) | (74,098,252 | ) | (44,733,703 | ) | ||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A Shares | (31,174 | ) | (64,249 | ) | (4,103,361 | ) | (10,263,959 | ) | ||||||||||
Class C Shares | (3,028 | ) | (6,623 | ) | (1,478,132 | ) | (3,494,239 | ) | ||||||||||
Class R3 Shares | (824 | ) | (1,868 | ) | (32,536 | ) | (68,691 | ) | ||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | (299,064 | ) | (798,173 | ) | (13,010,594 | ) | (37,801,973 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A Shares | — | (20,483 | ) | — | (1,298,112 | ) | ||||||||||||
Class C Shares | — | (2,560 | ) | — | (551,922 | ) | ||||||||||||
Class R3 Shares | — | (670 | ) | — | (10,919 | ) | ||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | — | (250,904 | ) | — | (5,141,766 | ) | ||||||||||||
Decrease in net assets from distributions to shareholders | (334,090 | ) | (1,145,530 | ) | (18,624,623 | ) | (58,631,581 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 200,876 | 1,078,129 | 128,898,742 | 477,217,806 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 72,527 | 364,059 | 8,754,582 | 25,563,889 | ||||||||||||||
273,403 | 1,442,188 | 137,653,324 | 502,781,695 | |||||||||||||||
Cost of shares redeemed | (4,326,488 | ) | (688,048 | ) | (310,004,909 | ) | (779,613,360 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (4,053,085 | ) | 754,140 | (172,351,585 | ) | (276,831,665 | ) | |||||||||||
Net increase (decrease) in net assets | (4,954,441 | ) | (1,892,011 | ) | (265,074,460 | ) | (380,196,949 | ) | ||||||||||
Net assets at the beginning of period | 18,819,395 | 20,711,406 | 622,345,101 | 1,002,542,050 | ||||||||||||||
Net assets at the end of period | $ | 13,864,954 | $ | 18,819,395 | $ | 357,270,641 | $ | 622,345,101 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (478,903 | ) | $ | (471,513 | ) | $ | 4,034,209 | $ | 2,281,412 |
See accompanying notes to financial statements.
82 | Nuveen Investments |
Strategic Income | U.S. Infrastructure Bond | |||||||||||||||||
Six Months Ended | Year Ended 6/30/15 | Six Months Ended | Year Ended | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 26,471,328 | $ | 47,638,574 | $ | 173,971 | $ | 314,543 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments and foreign currency | (40,208,644 | ) | (9,317,210 | ) | (58,864 | ) | 3,619 | |||||||||||
Forward foreign currency exchange contracts | 11,065,782 | 18,051,609 | — | — | ||||||||||||||
Futures contracts | (2,646,881 | ) | (6,149,196 | ) | (12,194 | ) | (106,378 | ) | ||||||||||
Swaps | (3,869,940 | ) | (863,146 | ) | — | — | ||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments and foreign currency | (45,164,647 | ) | (56,122,617 | ) | (103,203 | ) | (212,989 | ) | ||||||||||
Forward foreign currency exchange contracts | 1,919,659 | 790,473 | — | — | ||||||||||||||
Futures contracts | 1,296,817 | (495,755 | ) | (28,119 | ) | 44,447 | ||||||||||||
Swaps | (274,558 | ) | (1,179,760 | ) | — | — | ||||||||||||
Net increase (decrease) in net assets from operations | (51,411,084 | ) | (7,647,028 | ) | (28,409 | ) | 43,242 | |||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A Shares | (6,619,411 | ) | (10,648,005 | ) | (8,456 | ) | (6,013 | ) | ||||||||||
Class C Shares | (2,231,304 | ) | (3,444,106 | ) | (1,292 | ) | (2,019 | ) | ||||||||||
Class R3 Shares | (277,097 | ) | (433,800 | ) | — | — | ||||||||||||
Class R6 Shares | (711,132 | ) | (447,293 | ) | — | — | ||||||||||||
Class I Shares | (17,914,260 | ) | (37,555,701 | ) | (188,033 | ) | (325,689 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||
Decrease in net assets from distributions to shareholders | (27,753,204 | ) | (52,528,905 | ) | (197,781 | ) | (333,721 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 124,964,373 | 804,277,621 | 503,664 | 1,695,746 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 15,789,450 | 26,744,855 | 32,790 | 27,419 | ||||||||||||||
140,753,823 | 831,022,476 | 536,454 | 1,723,165 | |||||||||||||||
Cost of shares redeemed | (347,236,732 | ) | (359,677,544 | ) | (292,246 | ) | (392,069 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (206,482,909 | ) | 471,344,932 | 244,208 | 1,331,096 | |||||||||||||
Net increase (decrease) in net assets | (285,647,197 | ) | 411,168,999 | 18,018 | 1,040,617 | |||||||||||||
Net assets at the beginning of period | 1,205,228,089 | 794,059,090 | 8,153,616 | 7,112,999 | ||||||||||||||
Net assets at the end of period | $ | 919,580,892 | $ | 1,205,228,089 | $ | 8,171,634 | $ | 8,153,616 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 13,695,708 | $ | 14,977,584 | $ | (30,745 | ) | $ | (6,935 | ) |
See accompanying notes to financial statements.
Nuveen Investments | 83 |
Highlights (Unaudited)
Global Total Return Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (12/11) |
| |||||||||||||||||||||||||||||||||
2016(f) | $ | 18.35 | $ | 0.35 | $ | (1.00 | ) | $ | (0.65 | ) | $ | (0.36 | ) | $ | — | $ | (0.36 | ) | $ | 17.34 | ||||||||||||||
2015 | 20.97 | 0.73 | (2.26 | ) | (1.53 | ) | (0.82 | ) | (0.27 | ) | (1.09 | ) | 18.35 | |||||||||||||||||||||
2014 | 20.54 | 0.79 | 0.68 | 1.47 | (0.73 | ) | (0.31 | ) | (1.04 | ) | 20.97 | |||||||||||||||||||||||
2013 | 21.19 | 0.72 | (0.14 | ) | 0.58 | (0.86 | ) | (0.37 | ) | (1.23 | ) | 20.54 | ||||||||||||||||||||||
2012(d) | 20.00 | 0.41 | 1.07 | 1.48 | (0.29 | ) | — | (0.29 | ) | 21.19 | ||||||||||||||||||||||||
Class C (12/11) |
| |||||||||||||||||||||||||||||||||
2016(f) | 18.44 | 0.28 | (1.01 | ) | (0.73 | ) | (0.29 | ) | — | (0.29 | ) | 17.42 | ||||||||||||||||||||||
2015 | 21.04 | 0.58 | (2.26 | ) | (1.68 | ) | (0.65 | ) | (0.27 | ) | (0.92 | ) | 18.44 | |||||||||||||||||||||
2014 | 20.58 | 0.63 | 0.70 | 1.33 | (0.56 | ) | (0.31 | ) | (0.87 | ) | 21.04 | |||||||||||||||||||||||
2013 | 21.18 | 0.56 | (0.10 | ) | 0.46 | (0.69 | ) | (0.37 | ) | (1.06 | ) | 20.58 | ||||||||||||||||||||||
2012(d) | 20.00 | 0.29 | 1.13 | 1.42 | (0.24 | ) | — | (0.24 | ) | 21.18 | ||||||||||||||||||||||||
Class R3 (12/11) |
| |||||||||||||||||||||||||||||||||
2016(f) | 18.41 | 0.33 | (1.01 | ) | (0.68 | ) | (0.34 | ) | — | (0.34 | ) | 17.39 | ||||||||||||||||||||||
2015 | 21.03 | 0.68 | (2.27 | ) | (1.59 | ) | (0.76 | ) | (0.27 | ) | (1.03 | ) | 18.41 | |||||||||||||||||||||
2014 | 20.58 | 0.74 | 0.69 | 1.43 | (0.67 | ) | (0.31 | ) | (0.98 | ) | 21.03 | |||||||||||||||||||||||
2013 | 21.20 | 0.66 | (0.11 | ) | 0.55 | (0.80 | ) | (0.37 | ) | (1.17 | ) | 20.58 | ||||||||||||||||||||||
2012(d) | 20.00 | 0.35 | 1.13 | 1.48 | (0.28 | ) | — | (0.28 | ) | 21.20 | ||||||||||||||||||||||||
Class I (12/11) |
| |||||||||||||||||||||||||||||||||
2016(f) | 18.42 | 0.38 | (1.02 | ) | (0.64 | ) | (0.38 | ) | — | (0.38 | ) | 17.40 | ||||||||||||||||||||||
2015 | 21.05 | 0.78 | (2.27 | ) | (1.49 | ) | (0.87 | ) | (0.27 | ) | (1.14 | ) | 18.42 | |||||||||||||||||||||
2014 | 20.61 | 0.84 | 0.69 | 1.53 | (0.78 | ) | (0.31 | ) | (1.09 | ) | 21.05 | |||||||||||||||||||||||
2013 | 21.23 | 0.77 | (0.11 | ) | 0.66 | (0.91 | ) | (0.37 | ) | (1.28 | ) | 20.61 | ||||||||||||||||||||||
2012(d) | 20.00 | 0.42 | 1.12 | 1.54 | (0.31 | ) | — | (0.31 | ) | 21.23 |
84 | 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) | ||||||||||||||||||||||||
(3.63 | )% | $ | 1,387 | 2.09 | %* | 2.76 | %* | 0.96 | %* | 3.89 | %* | 52 | % | |||||||||||||||||
(7.45 | ) | 1,612 | 1.82 | 2.85 | 0.96 | 3.71 | 89 | |||||||||||||||||||||||
7.45 | 1,378 | 2.03 | 2.81 | 0.97 | 3.87 | 109 | ||||||||||||||||||||||||
2.47 | 1,037 | 2.16 | 2.10 | 0.97 | 3.29 | 176 | ||||||||||||||||||||||||
7.42 | 310 | 2.44 | * | 1.99 | * | 0.98 | * | 3.46 | * | 116 | ||||||||||||||||||||
(3.99 | ) | 199 | 2.85 | * | 2.01 | * | 1.71 | * | 3.14 | * | 52 | |||||||||||||||||||
(8.15 | ) | 204 | 2.57 | 2.11 | 1.71 | 2.96 | 89 | |||||||||||||||||||||||
6.74 | 204 | 2.77 | 2.06 | 1.72 | 3.11 | 109 | ||||||||||||||||||||||||
1.94 | 158 | 2.99 | 1.29 | 1.72 | 2.56 | 176 | ||||||||||||||||||||||||
7.10 | 53 | 2.74 | * | 1.41 | * | 1.72 | * | 2.42 | * | 116 | ||||||||||||||||||||
(3.75 | ) | 43 | 2.35 | * | 2.51 | * | 1.21 | * | 3.65 | * | 52 | |||||||||||||||||||
(7.72 | ) | 45 | 2.07 | 2.60 | 1.21 | 3.46 | 89 | |||||||||||||||||||||||
7.26 | 51 | 2.26 | 2.57 | 1.22 | 3.61 | 109 | ||||||||||||||||||||||||
2.34 | 50 | 2.31 | 1.91 | 1.22 | 3.00 | 176 | ||||||||||||||||||||||||
7.38 | 53 | 2.24 | * | 1.91 | * | 1.23 | * | 2.92 | * | 116 | ||||||||||||||||||||
(3.49 | ) | 12,236 | 1.82 | * | 3.03 | * | 0.71 | * | 4.13 | * | 52 | |||||||||||||||||||
(7.26 | ) | 16,958 | 1.57 | 3.10 | 0.71 | 3.95 | 89 | |||||||||||||||||||||||
7.76 | 19,078 | 1.77 | 3.09 | 0.72 | 4.13 | 109 | ||||||||||||||||||||||||
2.86 | 16,392 | 1.81 | 2.41 | 0.72 | 3.50 | 176 | ||||||||||||||||||||||||
7.71 | 14,767 | 1.74 | * | 2.41 | * | 0.73 | * | 3.42 | * | 116 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For the period December 2, 2011 (commencement of operations) through June 30, 2012. |
(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. |
(f) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 85 |
Financial Highlights (Unaudited) (continued)
High Income Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (8/01) |
| |||||||||||||||||||||||||||||||||
2016(e) | $ | 8.23 | $ | 0.29 | $ | (1.37 | ) | $ | (1.08 | ) | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | $ | 6.88 | ||||||||||||||
2015 | 9.29 | 0.55 | (1.00 | ) | (0.45 | ) | (0.54 | ) | (0.07 | ) | (0.61 | ) | 8.23 | |||||||||||||||||||||
2014 | 8.99 | 0.58 | 0.53 | 1.11 | (0.61 | ) | (0.20 | ) | (0.81 | ) | 9.29 | |||||||||||||||||||||||
2013 | 8.64 | 0.63 | 0.39 | 1.02 | (0.67 | ) | — | (0.67 | ) | 8.99 | ||||||||||||||||||||||||
2012 | 9.05 | 0.69 | (0.38 | ) | 0.31 | (0.69 | ) | (0.03 | ) | (0.72 | ) | 8.64 | ||||||||||||||||||||||
2011 | 8.28 | 0.67 | 0.76 | 1.43 | (0.66 | ) | — | (0.66 | ) | 9.05 | ||||||||||||||||||||||||
Class C (8/01) |
| |||||||||||||||||||||||||||||||||
2016(e) | 8.22 | 0.26 | (1.37 | ) | (1.11 | ) | (0.24 | ) | — | (0.24 | ) | 6.87 | ||||||||||||||||||||||
2015 | 9.27 | | 0.49 | | (0.99 | ) | (0.50 | ) | (0.48 | ) | (0.07 | ) | (0.55 | ) | 8.22 | |||||||||||||||||||
2014 | 8.98 | 0.51 | 0.52 | 1.03 | (0.54 | ) | (0.20 | ) | (0.74 | ) | 9.27 | |||||||||||||||||||||||
2013 | 8.62 | 0.56 | 0.40 | 0.96 | (0.60 | ) | — | (0.60 | ) | 8.98 | ||||||||||||||||||||||||
2012 | 9.01 | 0.63 | (0.37 | ) | 0.26 | (0.62 | ) | (0.03 | ) | (0.65 | ) | 8.62 | ||||||||||||||||||||||
2011 | 8.25 | 0.60 | 0.75 | 1.35 | (0.59 | ) | — | (0.59 | ) | 9.01 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2016(e) | 8.40 | 0.29 | (1.41 | ) | (1.12 | ) | (0.26 | ) | — | (0.26 | ) | 7.02 | ||||||||||||||||||||||
2015 | 9.48 | 0.53 | (1.01 | ) | (0.48 | ) | (0.53 | ) | (0.07 | ) | (0.60 | ) | 8.40 | |||||||||||||||||||||
2014 | 9.17 | 0.57 | 0.54 | 1.11 | (0.60 | ) | (0.20 | ) | (0.80 | ) | 9.48 | |||||||||||||||||||||||
2013 | 8.81 | 0.62 | 0.40 | 1.02 | (0.66 | ) | — | (0.66 | ) | 9.17 | �� | |||||||||||||||||||||||
2012 | 9.23 | 0.67 | (0.38 | ) | 0.29 | (0.68 | ) | (0.03 | ) | (0.71 | ) | 8.81 | ||||||||||||||||||||||
2011 | 8.44 | 0.66 | 0.77 | 1.43 | (0.64 | ) | — | (0.64 | ) | 9.23 | ||||||||||||||||||||||||
Class I (8/01) |
| |||||||||||||||||||||||||||||||||
2016(e) | 8.26 | 0.30 | (1.38 | ) | (1.08 | ) | (0.28 | ) | — | (0.28 | ) | 6.90 | ||||||||||||||||||||||
2015 | 9.31 | 0.57 | (0.98 | ) | (0.41 | ) | (0.57 | ) | (0.07 | ) | (0.64 | ) | 8.26 | |||||||||||||||||||||
2014 | 9.01 | 0.60 | 0.53 | 1.13 | (0.63 | ) | (0.20 | ) | (0.83 | ) | 9.31 | |||||||||||||||||||||||
2013 | 8.65 | 0.66 | 0.39 | 1.05 | (0.69 | ) | — | (0.69 | ) | 9.01 | ||||||||||||||||||||||||
2012 | 9.05 | 0.71 | (0.37 | ) | 0.34 | (0.71 | ) | (0.03 | ) | (0.74 | ) | 8.65 | ||||||||||||||||||||||
2011 | 8.29 | 0.69 | 0.75 | 1.44 | (0.68 | ) | — | (0.68 | ) | 9.05 |
86 | 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 | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||
(13.37 | )% | $ | 90,852 | 1.02 | %* | 7.64 | %* | 1.02 | %* | 7.64 | %* | 32 | % | |||||||||||||||||
(4.82 | ) | 119,535 | 0.97 | 6.31 | 0.97 | 6.31 | 80 | |||||||||||||||||||||||
12.88 | 209,830 | 0.95 | 6.37 | 0.95 | 6.37 | 85 | ||||||||||||||||||||||||
11.99 | 141,132 | 0.94 | 6.92 | 0.94 | 6.92 | 133 | ||||||||||||||||||||||||
3.76 | 92,018 | 1.06 | 7.98 | 1.04 | 7.99 | 124 | ||||||||||||||||||||||||
17.61 | 30,984 | 1.22 | 7.38 | 1.10 | 7.50 | 130 | ||||||||||||||||||||||||
(13.75 | ) | 38,853 | 1.78 | * | 6.92 | * | 1.78 | * | 6.92 | * | 32 | |||||||||||||||||||
(5.45 | ) | 55,409 | 1.72 | 5.62 | 1.72 | 5.62 | 80 | |||||||||||||||||||||||
11.98 | 71,974 | 1.70 | 5.64 | 1.70 | 5.64 | 85 | ||||||||||||||||||||||||
11.33 | 67,466 | 1.70 | 6.21 | 1.70 | 6.21 | 133 | ||||||||||||||||||||||||
3.18 | 48,667 | 1.80 | 7.26 | 1.79 | 7.27 | 124 | ||||||||||||||||||||||||
16.67 | 9,792 | 1.97 | 6.64 | 1.85 | 6.76 | 130 | ||||||||||||||||||||||||
(13.52 | ) | 834 | 1.28 | * | 7.45 | * | 1.28 | * | 7.45 | * | 32 | |||||||||||||||||||
(5.07 | ) | 995 | 1.21 | 6.03 | 1.21 | 6.03 | 80 | |||||||||||||||||||||||
12.65 | 1,099 | 1.20 | 6.09 | 1.20 | 6.09 | 85 | ||||||||||||||||||||||||
11.79 | 697 | 1.19 | 6.69 | 1.19 | 6.69 | 133 | ||||||||||||||||||||||||
3.46 | 615 | 1.31 | 7.66 | 1.29 | 7.68 | 124 | ||||||||||||||||||||||||
17.28 | 309 | 1.47 | 7.12 | 1.35 | 7.25 | 130 | ||||||||||||||||||||||||
(13.21 | ) | 226,731 | 0.77 | * | 7.83 | * | 0.77 | * | 7.83 | * | 32 | |||||||||||||||||||
(4.55 | ) | 446,406 | 0.72 | 6.56 | 0.72 | 6.56 | 80 | |||||||||||||||||||||||
13.15 | 719,640 | 0.71 | 6.61 | 0.71 | 6.61 | 85 | ||||||||||||||||||||||||
12.39 | 495,863 | 0.70 | 7.24 | 0.70 | 7.24 | 133 | ||||||||||||||||||||||||
4.15 | 465,299 | 0.84 | 8.19 | 0.80 | 8.23 | 124 | ||||||||||||||||||||||||
17.77 | 460,785 | 0.97 | 7.63 | 0.85 | 7.75 | 130 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. As of October 31, 2013, the Adviser is no longer reimbursing the Fund for any fees and expenses. |
(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. |
(e) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 87 |
Financial Highlights (Unaudited) (continued)
Strategic Income
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (2/00) |
| |||||||||||||||||||||||||||||||||
2016(g) | $ | 10.97 | $ | 0.25 | $ | (0.76 | ) | $ | (0.51 | ) | $ | (0.27 | ) | $ | — | | $ | (0.27 | ) | $ | 10.19 | |||||||||||||
2015 | 11.60 | 0.49 | (0.58 | ) | (0.09 | ) | (0.54 | ) | — | (0.54 | ) | 10.97 | ||||||||||||||||||||||
2014 | 11.02 | 0.53 | 0.59 | 1.12 | (0.54 | ) | — | (0.54 | ) | 11.60 | ||||||||||||||||||||||||
2013 | 10.83 | 0.52 | 0.16 | 0.68 | (0.49 | ) | — | (0.49 | ) | 11.02 | ||||||||||||||||||||||||
2012 | 10.72 | 0.44 | 0.10 | 0.54 | (0.43 | ) | — | (0.43 | ) | 10.83 | ||||||||||||||||||||||||
2011 | 10.27 | 0.43 | 0.45 | 0.88 | (0.43 | ) | — | (0.43 | ) | 10.72 | ||||||||||||||||||||||||
Class C (2/00) |
| |||||||||||||||||||||||||||||||||
2016(g) | 10.90 | 0.21 | (0.76 | ) | (0.55 | ) | (0.22 | ) | — | (0.22 | ) | 10.13 | ||||||||||||||||||||||
2015 | 11.52 | 0.40 | (0.57 | ) | (0.17 | ) | (0.45 | ) | — | (0.45 | ) | 10.90 | ||||||||||||||||||||||
2014 | 10.94 | 0.44 | 0.60 | 1.04 | (0.46 | ) | — | (0.46 | ) | 11.52 | ||||||||||||||||||||||||
2013 | 10.76 | 0.43 | 0.16 | 0.59 | (0.41 | ) | — | (0.41 | ) | 10.94 | ||||||||||||||||||||||||
2012 | 10.65 | 0.36 | 0.09 | 0.45 | (0.34 | ) | — | (0.34 | ) | 10.76 | ||||||||||||||||||||||||
2011 | 10.20 | 0.35 | 0.44 | 0.79 | (0.34 | ) | — | (0.34 | ) | 10.65 | ||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||
2016(g) | 11.01 | 0.24 | (0.76 | ) | (0.52 | ) | (0.26 | ) | — | (0.26 | ) | 10.23 | ||||||||||||||||||||||
2015 | 11.64 | 0.46 | (0.57 | ) | (0.11 | ) | (0.52 | ) | — | (0.52 | ) | 11.01 | ||||||||||||||||||||||
2014 | 11.05 | 0.51 | 0.60 | 1.11 | (0.52 | ) | — | (0.52 | ) | 11.64 | ||||||||||||||||||||||||
2013 | 10.88 | 0.49 | 0.15 | 0.64 | (0.47 | ) | — | (0.47 | ) | 11.05 | ||||||||||||||||||||||||
2012 | 10.77 | 0.41 | 0.10 | 0.51 | (0.40 | ) | — | (0.40 | ) | 10.88 | ||||||||||||||||||||||||
2011 | 10.31 | 0.41 | 0.45 | 0.86 | (0.40 | ) | — | (0.40 | ) | 10.77 | ||||||||||||||||||||||||
Class R6 (1/15) | ||||||||||||||||||||||||||||||||||
2016(g) | 10.96 | 0.27 | (0.77 | ) | (0.50 | ) | (0.28 | ) | — | (0.28 | ) | 10.18 | ||||||||||||||||||||||
2015(f) | 11.22 | 0.24 | (0.25 | ) | (0.01 | ) | (0.25 | ) | — | (0.25 | ) | 10.96 | ||||||||||||||||||||||
Class I (2/00) |
| |||||||||||||||||||||||||||||||||
2016(g) | 10.96 | 0.27 | (0.77 | ) | (0.50 | ) | (0.28 | ) | — | (0.28 | ) | 10.18 | ||||||||||||||||||||||
2015 | 11.59 | 0.52 | (0.58 | ) | (0.06 | ) | (0.57 | ) | — | (0.57 | ) | 10.96 | ||||||||||||||||||||||
2014 | 11.01 | 0.56 | 0.59 | 1.15 | (0.57 | ) | — | (0.57 | ) | 11.59 | ||||||||||||||||||||||||
2013 | 10.83 | 0.55 | 0.15 | 0.70 | (0.52 | ) | — | (0.52 | ) | 11.01 | ||||||||||||||||||||||||
2012 | 10.71 | 0.45 | 0.12 | 0.57 | (0.45 | ) | — | (0.45 | ) | 10.83 | ||||||||||||||||||||||||
2011 | 10.26 | 0.46 | 0.44 | 0.90 | (0.45 | ) | — | (0.45 | ) | 10.71 |
88 | 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)(e) | ||||||||||||||||||||||||
(4.74 | )% | $ | 231,213 | 0.92 | %* | 4.66 | %* | 0.82 | %* | 4.75 | %* | 25 | % | |||||||||||||||||
(0.80 | ) | 288,080 | 0.92 | 4.25 | 0.82 | 4.34 | 47 | |||||||||||||||||||||||
10.46 | 128,189 | 0.91 | 4.65 | 0.84 | 4.73 | 50 | ||||||||||||||||||||||||
6.25 | 72,341 | 0.90 | 4.50 | 0.84 | 4.57 | 69 | ||||||||||||||||||||||||
5.14 | 52,802 | 0.93 | 4.01 | 0.85 | 4.10 | 199 | ||||||||||||||||||||||||
8.69 | 25,045 | 1.05 | 3.93 | 0.88 | 4.10 | 98 | ||||||||||||||||||||||||
(5.07 | ) | 96,675 | 1.67 | * | 3.91 | * | 1.57 | * | 4.01 | * | 25 | |||||||||||||||||||
(1.50 | ) | 110,660 | 1.67 | 3.51 | 1.57 | 3.60 | 47 | |||||||||||||||||||||||
9.59 | 48,335 | 1.66 | 3.91 | 1.59 | 3.98 | 50 | ||||||||||||||||||||||||
5.50 | 35,146 | 1.65 | 3.75 | 1.59 | 3.81 | 69 | ||||||||||||||||||||||||
4.32 | 31,085 | 1.67 | 3.30 | 1.60 | 3.37 | 199 | ||||||||||||||||||||||||
7.85 | 8,092 | 1.80 | 3.22 | 1.73 | 3.29 | 98 | ||||||||||||||||||||||||
(4.83 | ) | 8,472 | 1.17 | * | 4.40 | * | 1.07 | * | 4.50 | * | 25 | |||||||||||||||||||
(1.01 | ) | 12,272 | 1.17 | 4.00 | 1.07 | 4.09 | 47 | |||||||||||||||||||||||
10.19 | 5,321 | 1.16 | 4.41 | 1.09 | 4.48 | 50 | ||||||||||||||||||||||||
5.89 | 2,926 | 1.15 | 4.27 | 1.09 | 4.34 | 69 | ||||||||||||||||||||||||
4.83 | 1,903 | 1.19 | 3.73 | 1.12 | 3.80 | 199 | ||||||||||||||||||||||||
8.40 | 1,020 | 1.29 | 3.73 | 1.23 | 3.79 | 98 | ||||||||||||||||||||||||
(4.62 | ) | 32,504 | 0.60 | * | 5.03 | * | 0.50 | * | 5.13 | * | 25 | |||||||||||||||||||
(0.10 | ) | 20,498 | 0.61 | * | 4.70 | * | 0.50 | * | 4.81 | * | 47 | |||||||||||||||||||
(4.62 | ) | 550,717 | 0.67 | * | 4.90 | * | 0.57 | * | 5.00 | * | 25 | |||||||||||||||||||
(0.54 | ) | 773,719 | 0.67 | 4.48 | 0.57 | 4.57 | 47 | |||||||||||||||||||||||
10.77 | 612,214 | 0.66 | 4.92 | 0.59 | 5.00 | 50 | ||||||||||||||||||||||||
6.42 | 517,292 | 0.65 | 4.75 | 0.59 | 4.81 | 69 | ||||||||||||||||||||||||
5.35 | 534,608 | 0.69 | 4.19 | 0.63 | 4.26 | 199 | ||||||||||||||||||||||||
8.99 | 615,107 | 0.80 | 4.22 | 0.73 | 4.29 | 98 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For fiscal years beginning after June 30, 2011, the Fund will no longer exclude dollar roll transactions, where applicable. |
(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. |
(f) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(g) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 89 |
Financial Highlights (Unaudited) (continued)
U.S. Infrastructure Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (5/14) |
| |||||||||||||||||||||||||||||||||
2016(f) | $ | 19.65 | $ | 0.39 | $ | (0.47 | ) | $ | (0.08 | ) | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 19.12 | ||||||||||||||
2015 | 20.32 | 0.78 | (0.63 | ) | 0.15 | (0.82 | ) | — | (0.82 | ) | 19.65 | |||||||||||||||||||||||
2014(d) | 20.00 | 0.09 | 0.30 | 0.39 | (0.07 | ) | — | (0.07 | ) | 20.32 | ||||||||||||||||||||||||
Class C (5/14) |
| |||||||||||||||||||||||||||||||||
2016(f) | 19.65 | 0.32 | (0.48 | ) | (0.16 | ) | (0.37 | ) | — | (0.37 | ) | 19.12 | ||||||||||||||||||||||
2015 | 20.31 | 0.62 | (0.62 | ) | — | (0.66 | ) | — | (0.66 | ) | 19.65 | |||||||||||||||||||||||
2014(d) | 20.00 | 0.07 | 0.29 | 0.36 | (0.05 | ) | — | (0.05 | ) | 20.31 | ||||||||||||||||||||||||
Class I (5/14) |
| |||||||||||||||||||||||||||||||||
2016(f) | 19.65 | 0.42 | (0.48 | ) | (0.06 | ) | (0.47 | ) | — | (0.47 | ) | 19.12 | ||||||||||||||||||||||
2015 | 20.32 | 0.83 | (0.62 | ) | 0.21 | (0.88 | ) | — | (0.88 | ) | 19.65 | |||||||||||||||||||||||
2014(d) | 20.00 | 0.10 | 0.29 | 0.39 | (0.07 | ) | — | (0.07 | ) | 20.32 |
90 | 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) | ||||||||||||||||||||||||
(0.43 | )% | $ | 527 | 2.20 | %* | 2.73 | %* | 0.95 | %* | 3.97 | %* | 8 | % | |||||||||||||||||
0.70 | 255 | 1.79 | 3.04 | 0.95 | 3.87 | 15 | ||||||||||||||||||||||||
1.93 | 51 | 3.46 | * | 0.77 | * | 0.96 | * | 3.27 | * | 4 | ||||||||||||||||||||
(0.87 | ) | 48 | 2.97 | * | 1.97 | * | 1.70 | * | 3.24 | * | 8 | |||||||||||||||||||
(0.03 | ) | 73 | 2.51 | 2.27 | 1.70 | 3.08 | 15 | |||||||||||||||||||||||
1.81 | 51 | 4.20 | * | 0.03 | * | 1.71 | * | 2.52 | * | 4 | ||||||||||||||||||||
(0.31 | ) | 7,597 | 1.97 | * | 2.98 | * | 0.70 | * | 4.25 | * | 8 | |||||||||||||||||||
0.96 | 7,825 | 1.50 | 3.27 | 0.70 | 4.07 | 15 | ||||||||||||||||||||||||
1.95 | 7,011 | 3.20 | * | 1.03 | * | 0.71 | * | 3.52 | * | 4 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | For the period May 12, 2014 (commencement of operations) through June 30, 2014. |
(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. |
(f) | For the six months ended December 31, 2015. |
* | Annualized. |
See accompanying notes to financial statements.
Nuveen Investments | 91 |
Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. and Nuveen Investment Trust (each a “Trust” and collectively, the “Trusts”), are open-end management investment companies registered under the Investment Company Act of 1940, as amended. Nuveen Investment Funds, Inc. is comprised of the Nuveen High Income Bond Fund (“High Income Bond”) and Nuveen Strategic Income Fund (“Strategic Income”), among others and Nuveen Investment Trust is comprised of the Nuveen Global Total Return Bond Fund (“Global Total Return Bond”) and Nuveen U.S. Infrastructure Bond Fund (“U.S. Infrastructure Bond”), among others (each a “Fund” and collectively, the “Funds”), as diversified funds. Nuveen Investment Funds, Inc. was incorporated in the state of Maryland on August 20, 1987. Nuveen Investment Trust was organized as a Massachusetts business trust in May 6, 1996.
The end of the reporting period for the Funds is December 31, 2015, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2015 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Investment Objectives and Principal Investment Strategies
Global Total Return Bond
Global Total Return Bond’s investment objective is to seek total return. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes, in bonds from issuers located around the world. The bonds in which the Fund may invest may be of any maturity and include: debt obligations of foreign governments; domestic and foreign corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations; U.S. government securities (securities issued or guaranteed by the U.S. government or its agencies or instrumentalities); residential and commercial mortgage-backed securities; and asset-backed securities.
Under normal market conditions, the Fund invests at least 40% of its net assets in non-U.S. issuers and is invested in issuers located in at least three countries (including the U.S.). The Fund may invest in debt obligations issued by governmental and corporate issuers located in emerging markets countries.
The Fund invests in securities that are U.S. dollar-denominated and in securities that are denominated in foreign currencies. As described in more detail below, the Fund may utilize various currency-related derivatives in an effort to enhance the Fund’s total return or to manage risk.
Up to 30% of the Fund’s net assets may be invested in securities rated lower than investment grade or in unrated securities of comparable quality as determined by the Sub-Adviser (such securities commonly referred to as “high yield” securities or “junk” bonds). If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; interest rate caps, collars, and floors; foreign currency contracts; options on foreign currencies; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the over-the-counter (“OTC”) market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to enhance returns. The Fund may also use derivatives to gain exposure to non-dollar denominated securities markets to the extent it does not do so through direct investments. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
92 | Nuveen Investments |
High Income Bond
High Income Bond’s investment objective is to provide investors with a high level of current income. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in bonds rated lower than investment grade at the time of purchase or in unrated bonds of comparable quality (securities commonly referred to as “high-yield” securities or “junk” bonds). These bonds generally provide high income in an effort to compensate investors for their higher risk of default, which is the failure to make required interest or principal payments. High-yield bond issuers include small or relatively new companies lacking the history or capital to merit investment-grade status, former blue chip companies downgraded because of financial problems, companies electing to borrow heavily to finance or avoid a takeover or buyout, and firms with heavy debt loads. The Fund may invest up to 20% of its net assets in fixed and floating rate loans, including senior loans and secured and unsecured junior loans. The Fund may invest in exchange-traded funds (“ETFs”), closed-end funds and other investment companies.
There is no minimum rating requirement and no limitation on the average maturity or average effective duration of securities held by the Fund.
The Fund may invest without limitation in debt obligations of foreign corporations and governments, provided that no more than 20% of the Fund’s total assets may be invested in debt obligations issued by governmental and corporate issuers that are located in emerging market countries. A country is considered to have an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies, and the potential for rapid economic growth, provided that no issuer included in the Fund’s current benchmark index will be considered to be located in an emerging market country.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; foreign currency contracts; options on foreign currencies; swap agreements, including interest rate swaps, currency swaps, total return swaps, and credit default swaps; and options on swap agreements. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions.
Strategic Income
Strategic Income’s investment objective is to provide investors with total return. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in debt securities, including U.S. government securities (securities issued or guaranteed by the U.S. government or its agencies or instrumentalities), residential and commercial mortgage-backed securities, asset-backed securities, domestic and foreign corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations and debt obligations of foreign governments. The Fund may invest in fixed and floating rate loans, including senior loans and secured and unsecured junior loans, in an amount not to exceed 20% of the Fund’s net assets and municipal securities in an amount not to exceed 20% of net assets.
The Fund may invest up to 30% of its total assets in non-U.S. dollar denominated debt obligations of foreign corporations and governments, including debt obligations issued by governmental and corporate issuers that are located in emerging market countries. The Fund may invest without limitation in U.S. dollar denominated securities of foreign issuers.
The Fund may invest up to 50% of its total assets in securities rated lower than investment grade or unrated securities of comparable quality as determined by the Sub-Adviser (securities commonly referred to as “high yield” securities or “junk” bonds). The Fund will not invest in securities rated lower than CCC at the time of purchase or in unrated securities of comparable quality as determined by the Sub-Adviser. If the rating of a security is reduced or the credit quality of an unrated security declines after purchase, the Fund is not required to sell the security, but may consider doing so. Unrated securities will not exceed 25% of the Fund’s total assets.
To generate additional income, the Fund may invest up to 25% of its total assets in dollar roll transactions. In a dollar roll transaction, the Fund sells mortgage-backed securities for delivery in the current month while contracting with the same party to repurchase similar securities at a future date.
Under normal market conditions the Fund attempts to maintain a weighted average effective maturity for its portfolio securities of fifteen years or less and an average effective duration of three to eight years. The Fund’s weighted average effective maturity and average effective duration are measures of how the value of the Fund’s shares may react to interest rate changes.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; interest rate caps, collars, and floors; foreign currency contracts; options on foreign currencies; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The Fund may also use derivatives to gain exposure to non-dollar denominated securities markets to the extent it does not do so through direct investments. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions. The Fund may not use any derivative to gain exposure to a security or type of security that it would be prohibited by its investment restrictions from purchasing directly.
Nuveen Investments | 93 |
Notes to Financial Statements (Unaudited) (continued)
U.S. Infrastructure Bond
U.S. Infrastructure Bond’s investment objective is to seek current income consistent with limited risk to capital. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in infrastructure-related debt securities of U.S. issuers. Such securities include taxable and tax-exempt municipal bonds issued to finance the ownership, development, construction, renovation or operation of infrastructure assets and debt securities issued by, or loans issued to, infrastructure-related companies, which include companies involved in the ownership, development, construction, renovation, financing or operation of infrastructure assets, or that provide the services and raw materials necessary for the construction and maintenance of infrastructure assets.
Infrastructure assets are the physical structures and networks upon which the operation, growth and development of a community depends, which include water, sewer, and energy utilities; transportation and communication networks; health care facilities, schools, government accommodations and other public service facilities; and shipping, timber, steel, alternative energy, and other resources and services necessary for the construction and maintenance of these physical structures and networks.
Municipal bonds in which the Fund invests include obligations issued by U.S. states and their subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin Islands and Guam). The Fund may invest in all types of municipal bonds including general obligation bonds, revenue bonds and participation interests in municipal leases. The Fund may invest in zero coupon bonds, which are issued at substantial discounts from their value at maturity and pay no cash income to their holders until they mature.
The Fund does not seek to provide income exempt from federal income tax. The Fund may invest in both taxable and tax-exempt municipal bonds. The Fund does not anticipate investing in tax-exempt bonds to the extent that its dividends will qualify as “exempt-interest dividends” and, as a result, it is expected that the Fund’s dividends will be taxable.
Other debt securities in which the Fund may invest include corporate debt obligations, including obligations issued by special-purpose entities that are backed by corporate debt obligations, fixed and floating rate loans, including senior loans and secured and unsecured junior loans.
The Fund may invest up to 20% of its total assets in debt obligations of non-U.S. issuers, including debt obligations issued by issuers that are located in emerging market countries.
The Fund may invest up to 40% of its net assets in securities rated below investment grade or, if unrated, judged by the Sub-Adviser to be of comparable quality. Such securities are commonly referred to as “high yield” securities or “junk” bonds.
The Fund is not subject to any formal restrictions on its average portfolio maturity or duration, or on the duration or maturity of the individual securities in which it invests. However, the Fund generally invests in longer term bonds which are more sensitive to interest rate risk.
The Fund may invest up to 15% of its net assets in securities whose interest payments vary inversely with changes in short-term interest rates (“inverse floaters”). Inverse floaters are derivative securities that provide leveraged exposure to underlying bonds. The Fund’s investments in inverse floaters are designed to increase the Fund’s income and returns through this leveraged exposure. These investments are speculative, however, and also create the possibility that income and returns will be diminished.
The Fund may utilize the following derivatives: options; futures contracts; options on futures contracts; interest rate caps, collars, and floors; foreign currency contracts; options on foreign currencies; swap agreements, including swap agreements on interest rates, currency rates, security indexes and specific securities, and credit default swap agreements; and options on the foregoing types of swap agreements. The Fund may enter into standardized derivatives contracts traded on domestic or foreign securities exchanges, boards of trade, or similar entities, and non-standardized derivatives contracts traded in the OTC market. The Fund may use these derivatives in an attempt to manage market risk, currency risk, credit risk and yield curve risk, to manage the effective maturity or duration of securities in the Fund’s portfolio or for speculative purposes in an effort to increase the Fund’s yield or to enhance returns. The use of a derivative is speculative if the Fund is primarily seeking to enhance returns, rather than offset the risk of other positions.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Trade date for senior and subordinated loans purchased in the “primary market” is considered the date on which loan allocations are determined. Trade date for senior and subordinated loans purchased in the “secondary market” is the date on which the transaction is entered into. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
94 | Nuveen Investments |
As of the end of the reporting period, the following Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
Global Total Return Bond | Strategic Income | |||||||
Outstanding when-issued/delayed delivery purchase commitments | $ | 904,359 | $ | 27,697,754 |
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. Interest income also reflects pay down gains and losses, if any. Fee income consists primarily of amendment fees. Amendment fees are earned as compensation for evaluating and accepting changes to an original senior loan agreement and are recognized when received. Fee income and amendment fees, if any, are recognized as a component of “Interest income” on the Statement of Operations. 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. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Shareholders
Dividends from net investment income are declared daily and distributed to shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the transfer agent.
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.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge. Class A Share purchases may be subject to a contingent deferred sales charge (“CDSC”) if redeemed within eighteen months of purchase. Such CDSC will be equal to 1.00% for any shares purchased on or after November 1, 2015. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% 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 0.25% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class R6 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 settled shares 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 service fees.
Sub-transfer agent fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net assets.
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 each Trust’s organizational documents, its officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to each Trust. In addition, in the normal course of business, each Trust enters into contracts that provide general indemnifications to other parties. Each Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred. However, each Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements (Global Total Return Bond and U.S. Infrastructure Bond only), International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements
Nuveen Investments | 95 |
Notes to Financial Statements (Unaudited) (continued)
(“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.
The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market 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). |
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. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued 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.
ETFs 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 NAVs on valuation date and are generally classified as Level 1.
Prices of fixed-income securities are provided by a pricing service approved by the Funds’ Board of Directors/Trustees (the “Board”). The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Prices of forward foreign currency exchange contracts and swap contracts are also priced by a pricing service approved by the Board using the same methods as described above, and are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange is closed and an investor is not able to purchase, redeem or exchange shares. 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’ NAV is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance
96 | Nuveen Investments |
with procedures established in good faith by the Board. 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 Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from 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 Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
Global Total Return Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Convertible Preferred Securities | $ | 81,995 | $ | — | $ | — | $ | 81,995 | ||||||||
Corporate Bonds | — | 6,155,426 | — | **** | 6,155,426 | |||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 938,176 | — | 938,176 | ||||||||||||
Asset-Backed and Mortgage-Backed Securities | — | 1,014,855 | — | 1,014,855 | ||||||||||||
Sovereign Debt | — | 5,520,931 | — | 5,520,931 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 887,323 | — | 887,323 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts*** | — | (30,173 | ) | — | (30,173 | ) | ||||||||||
Interest Rate Swaps*** | — | (27,895 | ) | — | (27,895 | ) | ||||||||||
Futures Contracts*** | 3,133 | — | — | 3,133 | ||||||||||||
Total | $ | 85,128 | $ | 14,458,643 | $ | — | $ | 14,543,771 |
High Income Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 834,940 | $ | 4,410 | ** | $ | 63,845 | ** | $ | 903,195 | ||||||
Convertible Preferred Securities | 4,277,315 | — | — | 4,277,315 | ||||||||||||
Variable Rate Senior Loan Interests | — | 22,488,599 | — | 22,488,599 | ||||||||||||
$25 Par (or similar) Retail Preferred | 20,390,076 | 1,243,302 | — | 21,633,378 | ||||||||||||
Corporate Bonds | — | 263,684,592 | — | **** | 263,684,592 | |||||||||||
Convertible Bonds | — | 1,850,706 | — | 1,850,706 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 11,300,376 | — | 11,300,376 | ||||||||||||
Asset-Backed Securities | — | 1,020 | — | 1,020 | ||||||||||||
Investment Companies | 10,114,966 | — | — | 10,114,966 | ||||||||||||
Warrants | — | 67 | 1,035 | ** | 1,102 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 20,019,220 | — | — | 20,019,220 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 15,854,091 | — | — | 15,854,091 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts*** | — | 355,221 | — | 355,221 | ||||||||||||
Futures Contracts*** | 27,042 | — | — | 27,042 | ||||||||||||
Total | $ | 71,517,650 | $ | 300,928,293 | $ | 64,880 | $ | 372,510,823 |
Nuveen Investments | 97 |
Notes to Financial Statements (Unaudited) (continued)
Strategic Income | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | — | $ | — | $ | 5,993 | ** | $ | 5,993 | |||||||
Convertible Preferred Securities | 983,025 | — | — | 983,025 | ||||||||||||
Variable Rate Senior Loan Interests | — | 12,282,031 | — | 12,282,031 | ||||||||||||
$25 Par (or similar) Retail Preferred | 240,400 | 4,196,557 | — | 4,436,957 | ||||||||||||
Corporate Bonds | — | 675,251,927 | — | **** | 675,251,927 | |||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 60,347,871 | — | 60,347,871 | ||||||||||||
U.S. Government and Agency Obligations | — | 369,172 | — | 369,172 | ||||||||||||
Asset-Backed Securities | — | 93,917,665 | — | 93,917,665 | ||||||||||||
Sovereign Debt | — | 51,054,893 | — | 51,054,893 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 119,270,506 | — | — | 119,270,506 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 43,922,615 | — | — | 43,922,615 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts*** | — | 2,526,919 | — | 2,526,919 | ||||||||||||
Interest Rate Swaps*** | — | (2,104,172 | ) | — | (2,104,172 | ) | ||||||||||
Futures Contracts*** | 893,036 | — | — | 893,036 | ||||||||||||
Total | $ | 165,309,582 | $ | 897,842,863 | $ | 5,993 | $ | 1,063,158,438 | ||||||||
U.S. Infrastructure Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 2,769,724 | $ | — | $ | 2,769,724 | ||||||||
Municipal Bonds | — | 5,249,541 | — | 5,249,541 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts*** | 1,177 | — | — | 1,177 | ||||||||||||
Total | $ | 1,177 | $ | 8,019,265 | $ | — | $ | 8,020,442 |
* | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and/or Level 3, where applicable. |
*** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
**** | Value equals zero as of the end of the reporting period. Refer to the Fund’s Portfolio of Investments for securities classified as Level 3. |
The Board 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, is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
98 | Nuveen Investments |
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.
As of the end of the reporting period, Global Total Return Bond’s investments in non-U.S. securities were as follows:
Global Total Return Bond | Value | % of Net Assets | ||||||
Country: | ||||||||
Mexico | $ | 1,583,875 | 11.4 | % | ||||
Germany | 1,260,945 | 9.1 | ||||||
United Kingdom | 879,575 | 6.3 | ||||||
Australia | 715,395 | 5.2 | ||||||
France | 608,885 | 4.4 | ||||||
South Africa | 535,850 | 3.9 | ||||||
Italy | 535,586 | 3.9 | ||||||
Portugal | 514,553 | 3.7 | ||||||
Hungary | 341,969 | 2.5 | ||||||
Canada | 298,973 | 2.2 | ||||||
Switzerland | 242,467 | 1.7 | ||||||
Other | 1,881,458 | 13.5 | ||||||
Total non-U.S. securities | $ | 9,399,531 | 67.8 | % |
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 (i) foreign currency (ii) investments (iii) investments in derivatives and (iv) other assets and liabilities 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 (i) investments and (ii) other assets and liabilities 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 investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Repurchase Agreements
Global Total Return Bond and U.S. Infrastructure Bond are authorized to invest in repurchase agreements. In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
Fund | Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
Global Total Return Bond | Fixed Income Clearing Corporation | $ | 887,323 | $ | (887,323 | ) | $ | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Portfolio of Investments for details on the repurchase agreements. |
Nuveen Investments | 99 |
Notes to Financial Statements (Unaudited) (continued)
Securities lending
In order to generate additional income, High Income Bond and Strategic Income may lend securities representing up to one-third of the value of each Fund’s total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, each Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Each Fund also has the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Funds. Upon termination, the borrower is required to return to the Funds securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Funds has the right to use the collateral to acquire identical securities. In the event the Funds is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Funds. Under each Fund’s securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its investment by the Fund. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association, serves as its securities lending agent. Each Fund pays the custodian a fee based on its proportional share of the custodian’s expense of operating its securities lending program. Income earned from the securities lending program is paid to the Fund, net of any fees paid. Income from securities lending, net of fees paid, is recognized as “Securities lending income, net” on the Statement of Operations.
The following table presents the securities out on loan for the Funds, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty | Net Exposure | ||||||||||
High Income Bond | ||||||||||||||
Common Stocks | $ | 111,592 | $ | (111,592 | ) | $ | — | |||||||
Convertible Preferred Securities | 652,123 | (652,123 | ) | — | ||||||||||
$25 Par (or similar) Retail Preferred | 5,060 | (5,060 | ) | — | ||||||||||
Corporate Bonds | 17,008,839 | (17,008,839 | ) | — | ||||||||||
$1,000 Par or Similar Institutional Preferred | 1,459,979 | (1,459,979 | ) | — | ||||||||||
Total | 19,237,593 | (19,237,593 | ) | — | ||||||||||
Strategic Income | ||||||||||||||
Convertible Preferred Securities | 6,587 | (6,587 | ) | — | ||||||||||
Corporate Bonds | 100,072,400 | (100,072,400 | ) | — | ||||||||||
$1,000 Par or Similar Institutional Preferred | 10,205,052 | (10,205,052 | ) | — | ||||||||||
Sovereign Debt | 4,498,239 | (4,498,239 | ) | — | ||||||||||
Total | 114,782,278 | (114,782,278 | ) | — |
Securities lending fees paid by each Fund during the current fiscal period were as follows:
High Income Bond | Strategic Income | |||||||
Securities lending fees paid | $ | 31,534 | $ | 41,302 |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
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.
100 | Nuveen Investments |
Forward Foreign Currency Exchange Contracts
Each Fund is authorized to enter into forward foreign currency exchange contracts (“forward contract”) under two circumstances: (i) when a Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency to “lock in” the U.S. exchange rate of the transaction, with such period being a short-dated contract covering the period between transaction date and settlement date; or (ii) when the Sub-Adviser believes that the currency of a particular foreign country may experience a substantial movement against the U.S. dollar or against another foreign currency.
A forward contract is an agreement between two parties to purchase or sell a specified quantity of a currency at or before a specified date in the future at a specified price. Forward contracts are typically traded in the OTC markets and all details of the contract are negotiated between the counterparties to the agreement. Accordingly, the forward contracts are valued by reference to the contracts traded in the OTC markets. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying currency, establishing an opposite position in the contract and recognizing the profit or loss on both positions simultaneously on the delivery date or, in some instances, paying a cash settlement before the designated date of delivery.
Forward contracts are valued daily at the forward rate. The net amount recorded on these transactions for each counterparty is recognized as a component of “Unrealized appreciation and/or depreciation on forward foreign currency exchange contracts (, net)” on the Statement of Assets and Liabilities. The change in value of the forward contracts during the reporting period is recognized as a component of “Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts” on the Statement of Operations. When the contract is closed or offset with the same counterparty, a Fund recognizes the difference between the value of the contract at the time it was entered and the value at the time it was closed or offset as a component of “Net realized gain (loss) from forward foreign currency exchange contracts” on the Statement of Operations.
Forward contracts will generally not be entered into for terms greater than three months, but may have maturities of up to six months or more. The use of forward contracts does not eliminate fluctuations in the underlying prices of a Fund’s investment securities; however, it does establish a rate of exchange that can be achieved in the future. The use of forward contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reflected on the Statement of Assets and Liabilities. Forward contracts are subject to counterparty risk if the counterparty fails to perform as specified in the contract due to financial impairment or other reason.
During the current fiscal period, Global Total Return Bond, High Income Bond and Strategic Income invested in forward foreign currency exchange contracts. Global Total Return Bond used foreign currency exchange contracts to gain exposure to selected foreign currencies, and in some cases, to hedge the currency risk present in a foreign bond. High Income Bond and Strategic Income used forward foreign currency exchange contracts to manage foreign currency exposure. For example, High Income Bond and Strategic Income may reduce unwanted currency exposure from their portfolios, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation.
The average notional amount of forward foreign currency exchange contracts outstanding during the current fiscal period was as follows:
Global Total Return Bond | High Income Bond | Strategic Income | ||||||||||
Average notional amount of forward foreign currency exchange contracts outstanding* | $ | 13,434,871 | $ | 47,519,217 | $ | 201,298,682 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all forward foreign currency exchange contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Global Total Return Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | $ | 21,232 | Unrealized depreciation on forward foreign currency exchange contracts | $ | (46,594 | ) | ||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | (4,811 | ) | — | — | ||||||||
Total | $ | 16,421 | $ | (46,594 | ) |
Nuveen Investments | 101 |
Notes to Financial Statements (Unaudited) (continued)
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
High Income Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | $ | 520,587 | — | $ | — | |||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | (165,366 | ) | — | — | ||||||||
Total | $ | 355,221 | $ | — | ||||||||||
Strategic Income | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | $ | 2,527,125 | — | $ | — | |||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency exchange contracts, net | (206 | ) | — | — | ||||||||
Total | $ | 2,526,919 | $ | — |
The following table presents the forward foreign currency exchange contracts subject to netting agreements and the collateral delivered related to those forward foreign currency exchange contracts as of the end of the reporting period.
Fund | Counterparty | Gross Unrealized Appreciation on Forward Foreign Currency Exchange Contracts* | Gross Unrealized (Depreciation) on Forward Foreign Currency Exchange Contracts* | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Forward Foreign Currency Exchange Contracts | Collateral Pledged to (from) Counterparty | Net Exposure | |||||||||||||||||||
Global Total Return Bond | ||||||||||||||||||||||||||
Bank of America, N.A. | $ | 11,193 | $ | (2,539 | ) | $ | (2,539 | ) | $ | 8,654 | $ | — | $ | 8,654 | ||||||||||||
Citibank, National Association | 2,340 | — | — | 2,340 | — | 2,340 | ||||||||||||||||||||
Deutsche Bank AG | — | (17,360 | ) | — | (17,360 | ) | — | (17,360 | ) | |||||||||||||||||
Goldman Sachs Bank USA | — | (29,234 | ) | — | (29,234 | ) | — | (29,234 | ) | |||||||||||||||||
Morgan Stanley Capital Services LLC | 7,699 | (2,272 | ) | (2,272 | ) | 5,427 | — | 5,427 | ||||||||||||||||||
Total | $ | 21,232 | $ | (51,405 | ) | $ | (4,811 | ) | $ | (30,173 | ) | $ | — | $ | (30,173 | ) | ||||||||||
High Income Bond | ||||||||||||||||||||||||||
Bank of America, N.A. | $ | 113,499 | $ | (45,788 | ) | $ | (45,788 | ) | $ | 67,711 | $ | — | $ | 67,711 | ||||||||||||
Citigroup Global Markets, Inc. | 108,550 | (20,925 | ) | (20,925 | ) | 87,625 | — | 87,625 | ||||||||||||||||||
Goldman Sachs Bank USA | 298,538 | (98,653 | ) | (98,653 | ) | 199,885 | (199,885 | ) | — | |||||||||||||||||
Total | $ | 520,587 | $ | (165,366 | ) | $ | (165,366 | ) | $ | 355,221 | $ | (199,885 | ) | $ | 155,336 | |||||||||||
Strategic Income | ||||||||||||||||||||||||||
Bank of America, N.A. | $ | 355,249 | $ | (206 | ) | $ | (206 | ) | $ | 355,043 | $ | (355,043 | ) | $ | — | |||||||||||
Goldman Sachs Bank USA | 128,788 | — | — | 128,788 | (128,788 | ) | — | |||||||||||||||||||
Nomura International PLC | 2,043,088 | — | — | 2,043,088 | (1,900,000 | ) | 143,088 | |||||||||||||||||||
Total | $ | 2,527,125 | $ | (206 | ) | $ | (206 | ) | $ | 2,526,919 | $ | (2,383,831 | ) | $ | 143,088 |
* | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on forward foreign currency exchange contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Forward Foreign Currency Exchange Contracts | Change in Net Unrealized Appreciation (Depreciation) of Forward Foreign Currency Exchange Contracts | ||||||||
Global Total Return Bond | Foreign currency exchange rate | Forward contracts | $ | 206,968 | $ | 77,055 | ||||||
High Income Bond | Foreign currency exchange rate | Forward contracts | 1,991,908 | 182,103 | ||||||||
Strategic Income | Foreign currency exchange rate | Forward contracts | 11,065,782 | 1,919,659 |
102 | 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 “Cash collateral at brokers” 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 Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the 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 or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, each of the Funds invested in futures contracts. Global Total Return Bond and Strategic Income used U.S. Treasury and Eurodollar futures as part of an overall portfolio construction strategy to manage portfolio duration and yield curve exposure; using selected foreign bond futures to actively manage exposure to those markets. High Income Bond used U.S. Treasury futures as part of an overall portfolio construction strategy to manage portfolio duration and yield curve exposure. U.S. Infrastructure Bond shorted U.S. Treasury futures to hedge against potential increases in interest rates.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Average notional amount of futures contracts outstanding* | $ | 2,299,601 | $ | 39,360,748 | $ | 249,858,667 | $ | 1,077,854 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Global Total Return Bond | ||||||||||||||
Interest rate | Futures contracts | — | $ | — | Payable for variation margin on futures contracts* | $ | 3,133 | |||||||
High Income Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | (10,618 | ) | Payable for variation margin on futures contracts* | $ | 37,660 | ||||||
Strategic Income | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 298,950 | — | $ | — | |||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | (17,271 | ) | Payable for variation margin on futures contracts* | 611,357 | ||||||||
Total | $ | 281,679 | $ | 611,357 | ||||||||||
U.S. Infrastructure Bond | ||||||||||||||
Interest rate | Futures contracts | — | $ | — | Payable for variation margin on futures contracts* | $ | 1,177 |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivatives location as described in the table above. |
Nuveen Investments | 103 |
Notes to Financial Statements (Unaudited) (continued)
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | ||||||||
Global Total Return Bond | Interest rate | Futures contracts | $ | (5,490 | ) | $ | (19,688 | ) | ||||
High Income Bond | Interest rate | Futures contracts | 25,266 | 302,559 | ||||||||
Strategic Income | Interest rate | Futures contracts | (2,646,881 | ) | 1,296,817 | |||||||
U.S. Infrastructure Bond | Interest rate | Futures contracts | (12,194 | ) | (28,119 | ) |
Interest Rate Swap Contracts
Interest rate swap contracts involve a Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract. Swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that the Fund is to receive.
Interest rate swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), a Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. For OTC swaps, the net amount recorded on these transactions, for each counterparty, is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on interest rate swaps (, net).”
Upon the execution of an exchanged-cleared swap contract, in certain instances 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 swap contracts, if any, is recognized as “Cash collateral at brokers” on the Statement of Assets and Liabilities. Investments in exchange-cleared interest rate swap contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the swap contract. If a Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on swap contracts” on the Statement of Assets and Liabilities.
The net amount of periodic payments settled in cash are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contacts are treated as ordinary income or expense, respectively.
Changes in the value of the swap contracts during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps.” In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as “Interest rate swaps premiums paid and/or received” on the Statement of Assets and Liabilities.
During the current fiscal period, Global Total Return Bond, High Income Bond and Strategic Income invested in interest rate swap contracts as part of an overall portfolio construction strategy to manage duration and overall portfolio yield curve exposure.
The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:
Global Total Return Bond | High Income Bond | Strategic Income | ||||||||||
Average notional amount of interest rate swap contracts outstanding* | $ | 866,667 | $ | 37,333,333 | $ | 103,133,333 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
Credit Default Swap Contracts
A Fund may enter into a credit default swap contract to seek to maintain a total return on a particular investment or portion of its portfolio, or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap contracts involve one party making a stream of payments to another party in exchange for the right to receive a specified return if/when there is a credit event by a third party. Generally, a credit event means bankruptcy, failure to pay, or restructuring. The specific credit events applicable for each credit default swap are stated in the terms of the particular swap agreement. Upon occurrence of a specific credit event with respect to the underlying referenced entity, the Fund will either (i) receive that security, or an equivalent amount of cash, from the counterparty in exchange for payment of the notional amount to the counterparty, or
104 | Nuveen Investments |
(ii) pay a net settlement amount of the credit default swap contract less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The difference between the value of the security delivered and the notional amount received is recorded as a realized gain or loss. Payments received or made at the beginning of the measurement period are recognized as a component of “Credit default swaps premiums paid and/or received” on the Statement of Assets and Liabilities, when applicable.
Credit default swap contracts are valued daily. Changes in the value of a credit default swap during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” and realized gains and losses are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations.
For over-the-counter swaps, the daily change in the market value of the swap contract, along with any daily interest fees accrued, are recognized as components of “Unrealized appreciation or depreciation on credit default swaps (, net)” on the Statement of Assets and Liabilities.
Investments in swaps cleared through an exchange 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 swap. If a Fund has unrealized appreciation the clearing broker would credit the Fund’s account with an amount equal to the appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit a Fund’s account with an amount equal to the 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 swap contracts” on the Statement of Assets and Liabilities. The maximum potential amount of future payments the Fund could incur as a buyer of protection in a credit default swap contract is limited to the notional amount of the contract. The maximum potential amount would be offset by the recovery value, if any, of the respective referenced entity. In certain instances, 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 swap contracts, if any, is recognized as “Cash collateral at brokers” on the Statement of Assets and Liabilities.
During the current fiscal period, Global Total Return Bond and Strategic Income invested in credit default swap contracts. Global Total Return Bond and Strategic Income used High Yield CDX swaps as a way to take on credit risk and earn a commensurate credit spread.
The average notional amount of credit default swap contracts outstanding during the current fiscal period was as follows:
Global Total Return Bond** | Strategic Income | |||||||
Average notional amount of credit default swap contracts outstanding* | $ | — | $ | 4,666,667 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
** | The Fund did not hold any credit default swaps at the beginning of the fiscal year or at the end of any quarter within the current fiscal period. |
The following table presents the fair value of all swap contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Derivative Instrument | Asset Derivatives | (Liability) Derivatives | ||||||||||||
Underlying Risk Exposure | Location | Value | Location | Value | ||||||||||
Global Total Return Bond | ||||||||||||||
Interest rate | Swaps (Exchange-Cleared) | — | $ | — | Payable for variation margin on swap contracts* | $ | (23,100 | ) | ||||||
Interest rate | Swaps (OTC) | — | — | Unrealized depreciation on interest rate swaps | (4,795 | ) | ||||||||
Total | $ | — | $ | (27,895 | ) | |||||||||
Strategic Income | ||||||||||||||
Interest Rate | Swaps (Exchange-Cleared) | Receivable for variation margin on swap contracts* | $ | (1,458,532 | ) | — | $ | — | ||||||
Interest Rate | Swaps (OTC) | — | — | Unrealized depreciation on interest rate swaps | (645,640 | ) | ||||||||
Total | $ | (1,458,532 | ) | $ | (645,640 | ) |
* | Value represents unrealized appreciation (depreciation) of swaps as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivative location as described in the table above. |
Nuveen Investments | 105 |
Notes to Financial Statements (Unaudited) (continued)
The following table presents the swap contacts subject to netting agreements and the collateral delivered related to those swap contracts as of the end of the reporting period.
Fund | Counterparty | Gross Unrealized Appreciation on Interest Rate Swaps*** | Gross Unrealized (Depreciation) on Interest Rate Swaps*** | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Interest Rate Swaps | Collateral Pledged to (from) Counterparty | Net Exposure | |||||||||||||||||||
Global Total Return Bond | ||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | $ | — | $ | (4,795 | ) | $ | — | $ | (4,795 | ) | $ | — | $ | (4,795 | ) | |||||||||||
Strategic Income | ||||||||||||||||||||||||||
JPMorgan Chase Bank, N.A. | $ | — | $ | (645,640 | ) | $ | — | $ | (645,640 | ) | $ | 645,640 | $ | — |
*** | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Swaps | Change in Net Unrealized Appreciation (Depreciation) of Swaps | ||||||||
Global Total Return Bond | ||||||||||||
Credit | Swaps | $ | (18,736 | ) | $ | — | ||||||
Interest rate | Swaps | — | (26,647 | ) | ||||||||
Total | $ | (18,736 | ) | $ | (26,647 | ) | ||||||
High Income Bond | ||||||||||||
Interest rate | Swaps | $ | (1,288,860 | ) | $ | 250,790 | ||||||
Strategic Income | ||||||||||||
Credit | Swaps | $ | (647,632 | ) | $ | — | ||||||
Interest rate | Swaps | (3,222,308 | ) | (274,558 | ) | |||||||
Total | $ | (3,869,940 | ) | $ | (274,558 | ) |
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.
106 | Nuveen Investments |
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Global Total Return Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 7,240 | $ | 129,857 | 33,410 | $ | 663,020 | ||||||||||
Class C | 1,274 | 22,531 | 3,771 | 75,939 | ||||||||||||
Class R3 | — | — | — | — | ||||||||||||
Class I | 2,670 | 48,488 | 17,049 | 339,170 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 1,720 | 30,696 | 4,268 | 83,527 | ||||||||||||
Class C | 132 | 2,362 | 360 | 7,063 | ||||||||||||
Class R3 | 3 | 56 | 9 | 168 | ||||||||||||
Class I | 2,178 | 39,413 | 13,892 | 273,301 | ||||||||||||
15,217 | 273,403 | 72,759 | 1,442,188 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (16,798 | ) | (299,138 | ) | (15,528 | ) | (302,329 | ) | ||||||||
Class C | (1,020 | ) | (18,680 | ) | (2,786 | ) | (56,510 | ) | ||||||||
Class R3 | — | — | — | (2 | ) | |||||||||||
Class I | (222,358 | ) | (4,008,670 | ) | (16,704 | ) | (329,207 | ) | ||||||||
(240,176 | ) | (4,326,488 | ) | (35,018 | ) | (688,048 | ) | |||||||||
Net increase (decrease) | (224,959 | ) | $ | (4,053,085 | ) | 37,741 | $ | 754,140 | ||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
High Income Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 9,294,000 | $ | 70,029,308 | 20,579,913 | $ | 179,760,260 | ||||||||||
Class C | 465,187 | 3,443,507 | 1,237,977 | 10,700,119 | ||||||||||||
Class R3 | 25,647 | 198,430 | 57,519 | 514,788 | ||||||||||||
Class I | 7,317,161 | 55,227,497 | 32,641,176 | 286,242,639 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 486,520 | 3,624,218 | 1,136,540 | 9,756,311 | ||||||||||||
Class C | 162,791 | 1,214,747 | 380,202 | 3,252,087 | ||||||||||||
Class R3 | 3,353 | 25,544 | 7,898 | 69,117 | ||||||||||||
Class I | 517,246 | 3,890,073 | 1,453,361 | 12,486,374 | ||||||||||||
18,271,905 | 137,653,324 | 57,494,586 | 502,781,695 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (11,095,306 | ) | (81,369,685 | ) | (29,786,857 | ) | (259,748,690 | ) | ||||||||
Class C | (1,713,662 | ) | (12,726,261 | ) | (2,641,731 | ) | (22,651,623 | ) | ||||||||
Class R3 | (28,687 | ) | (215,148 | ) | (62,900 | ) | (537,346 | ) | ||||||||
Class I | (29,034,064 | ) | (215,693,815 | ) | (57,301,772 | ) | (496,675,701 | ) | ||||||||
(41,871,719 | ) | (310,004,909 | ) | (89,793,260 | ) | (779,613,360 | ) | |||||||||
Net increase (decrease) | (23,599,814 | ) | $ | (172,351,585 | ) | (32,298,674 | ) | $ | (276,831,665 | ) |
Nuveen Investments | 107 |
Notes to Financial Statements (Unaudited) (continued)
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
Strategic Income | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,461,272 | $ | 26,212,639 | 22,233,359 | $ | 252,302,027 | ||||||||||
Class C | 801,270 | 8,472,788 | 6,832,580 | 77,016,680 | ||||||||||||
Class R3 | 262,860 | 2,788,636 | 930,153 | 10,536,994 | ||||||||||||
Class R6 | 1,601,985 | 16,919,904 | 1,927,736 | 21,625,297 | ||||||||||||
Class I | 6,637,017 | 70,570,406 | 39,093,277 | 442,796,623 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 586,989 | 6,204,176 | 874,773 | 9,870,223 | ||||||||||||
Class C | 169,569 | 1,780,185 | 247,639 | 2,777,282 | ||||||||||||
Class R3 | 18,311 | 194,853 | 31,479 | 356,678 | ||||||||||||
Class R6 | 61,589 | 648,093 | 33,785 | 377,964 | ||||||||||||
Class I | 658,698 | 6,962,143 | 1,184,390 | 13,362,708 | ||||||||||||
13,259,560 | 140,753,823 | 73,389,171 | 831,022,476 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (6,615,393 | ) | (70,003,712 | ) | (7,902,380 | ) | (89,477,691 | ) | ||||||||
Class C | (1,575,884 | ) | (16,540,748 | ) | (1,125,835 | ) | (12,594,984 | ) | ||||||||
Class R3 | (567,023 | ) | (5,993,530 | ) | (304,433 | ) | (3,451,611 | ) | ||||||||
Class R6 | (341,550 | ) | (3,657,152 | ) | (91,956 | ) | (1,035,000 | ) | ||||||||
Class I | (23,783,259 | ) | (251,041,590 | ) | (22,515,883 | ) | (253,118,258 | ) | ||||||||
(32,883,109 | ) | (347,236,732 | ) | (31,940,487 | ) | (359,677,544 | ) | |||||||||
Net increase (decrease) | (19,623,549 | ) | $ | (206,482,909 | ) | 41,448,684 | $ | 471,344,932 | ||||||||
Six Months Ended 12/31/15 | Year Ended 6/30/15 | |||||||||||||||
U.S. Infrastructure Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 15,656 | $ | 304,952 | 10,805 | $ | 219,867 | ||||||||||
Class C | — | — | 1,230 | 25,000 | ||||||||||||
Class I | 10,159 | 198,712 | 71,062 | 1,450,879 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 379 | 7,336 | 195 | 3,950 | ||||||||||||
Class C | 19 | 364 | 18 | 379 | ||||||||||||
Class I | 1,291 | 25,090 | 1,138 | 23,090 | ||||||||||||
27,504 | 536,454 | 84,448 | 1,723,165 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,471 | ) | (28,842 | ) | (503 | ) | (10,250 | ) | ||||||||
Class C | (1,249 | ) | (23,979 | ) | (18 | ) | (379 | ) | ||||||||
Class I | (12,272 | ) | (239,425 | ) | (18,972 | ) | (381,440 | ) | ||||||||
(14,992 | ) | (292,246 | ) | (19,493 | ) | (392,069 | ) | |||||||||
Net increase (decrease) | 12,512 | $ | 244,208 | 64,955 | $ | 1,331,096 |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions) during the current fiscal period were as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Purchases: | ||||||||||||||||
Investment securities | $ | 3,501,741 | $ | 162,887,120 | $ | 195,545,515 | $ | 849,467 | ||||||||
U.S. Government and agency obligations | 4,663,589 | — | 69,426,193 | — | ||||||||||||
Sales and maturities: | ||||||||||||||||
Investment securities | $ | 7,383,906 | $ | 350,837,450 | $ | 403,256,023 | $ | 666,099 | ||||||||
U.S. Government and agency obligations | 4,490,919 | — | 49,746,563 | — |
108 | Nuveen Investments |
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 NAVs of the Funds.
As of December 31, 2015, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Cost of investments | $ | 15,792,180 | $ | 465,630,910 | $ | 1,131,616,059 | $ | 8,253,422 | ||||||||
Gross unrealized: | ||||||||||||||||
Appreciation | $ | 158,179 | $ | 1,777,129 | $ | 12,265,163 | $ | 104,634 | ||||||||
Depreciation | (1,351,653 | ) | (95,279,479 | ) | (82,038,567 | ) | (338,791 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments | $ | (1,193,474 | ) | $ | (93,502,350 | ) | $ | (69,773,404 | ) | $ | (234,157 | ) |
Permanent differences, primarily due to federal taxes paid, treatment of notional principal contracts, nondeductible stock issuance costs, distribution reallocation, adjustments for investments in real estate investment trusts, investments in partnerships and foreign currency transactions resulted in reclassifications among the Funds’ components of net assets as of June 30, 2015, the Funds’ last tax year end, as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Capital paid-in | $ | — | $ | 2,671 | $ | 11,280 | $ | (152 | ) | |||||||
Undistributed (Over-distribution of) net investment income | (601,697 | ) | 6,585,134 | 10,120,812 | 2,207 | |||||||||||
Accumulated net realized gain (loss) | 601,697 | (6,587,805 | ) | (10,132,092 | ) | (2,055 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2015, the Funds’ last tax year end, were as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Undistributed net ordinary income1 | $ | 76,666 | $ | 6,128,479 | $ | 21,235,649 | $ | 47,620 | ||||||||
Undistributed net long-term capital gains | — | — | — | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared during the period June 1, 2015 through June 30, 2015 and paid on July 1, 2015. Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended June 30, 2015, was designated for purposes of the dividends paid deduction as follows:
Global Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Distributions from net ordinary income2 | $ | 987,815 | $ | 54,503,646 | $ | 50,714,515 | $ | 328,659 | ||||||||
Distributions from net long-term capital gains | 156,028 | 5,641,156 | — | — |
2 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
Nuveen Investments | 109 |
Notes to Financial Statements (Unaudited) (continued)
As of June 30, 2015, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
Global Bond | Strategic Income | U.S. Infrastructure Bond | ||||||||||
Expiration June 30, 2018 | $ | — | $ | 35,110,019 | $ | — | ||||||
Not subject to expiration | 136,207 | 8,596,300 | 75,108 | |||||||||
Total | $ | 136,207 | $ | 43,706,319 | $ | 75,108 |
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Funds have elected to defer losses as follows:
Global Total Return Bond | High Income Bond | |||||||
Post-October capital losses3 | $ | — | $ | 29,845,915 | ||||
Late-year ordinary losses4 | 544,566 | — |
3 | Capital losses incurred from November 1, 2014 through June 30, 2015, the Funds’ last tax year end. |
4 | Ordinary losses incurred from January 1, 2015 through June 30, 2015 and/or specified losses incurred from November 1, 2014 through June 30, 2015. |
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, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Net Assets | Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | ||||||||||||
For the first $125 million | 0.4000 | % | 0.4000 | % | 0.3600 | % | 0.4500 | % | ||||||||
For the next $125 million | 0.3875 | 0.3875 | 0.3475 | 0.4375 | ||||||||||||
For the next $250 million | 0.3750 | 0.3750 | 0.3350 | 0.4250 | ||||||||||||
For the next $500 million | 0.3625 | 0.3625 | 0.3225 | 0.4125 | ||||||||||||
For the next $1 billion | 0.3500 | 0.3500 | 0.3100 | 0.4000 | ||||||||||||
For net assets over $2 billion | 0.3250 | 0.3250 | 0.2850 | 0.3875 |
110 | Nuveen Investments |
The annual complex-level fee, payable monthly, for each Fund 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 for High Income Bond and Strategic Income, 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 | 0.2000 | % | ||
$56 billion | 0.1996 | |||
$57 billion | 0.1989 | |||
$60 billion | 0.1961 | |||
$63 billion | 0.1931 | |||
$66 billion | 0.1900 | |||
$71 billion | 0.1851 | |||
$76 billion | 0.1806 | |||
$80 billion | 0.1773 | |||
$91 billion | 0.1691 | |||
$125 billion | 0.1599 | |||
$200 billion | 0.1505 | |||
$250 billion | 0.1469 | |||
$300 billion | 0.1445 |
* | 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 December 31, 2015, the complex-level fee for each Fund was as follows: |
Fund | Complex-Level Fee | |||
Global Total Return Bond | 0.1639 | % | ||
High Income Bond | 0.2000 | |||
Strategic Income | 0.1872 | |||
U.S. Infrastructure Bond | 0.1639 |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of the following Funds so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table:
Fund | Expense Cap | Expense Cap Expiration Date | ||||
Global Total Return Bond | 0.75 | % | October 31, 2016 | |||
Strategic Income | 0.59 | October 31, 2016 | ||||
U.S. Infrastructure Bond | 0.74 | October 31, 2017 |
Neither Trust pays compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to each Trust from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent directors/trustees that enable directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
During the current fiscal period, Nuveen Securities, LLC. (the “Distributor”), a wholly-owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Sales charges collected | $ | 1,965 | $ | 150,030 | $ | 108,449 | $ | 9,377 | ||||||||
Paid to financial intermediaries | 1,701 | 133,454 | 96,654 | 8,200 |
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.
Nuveen Investments | 111 |
Notes to Financial Statements (Unaudited) (continued)
During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
Commission advances | $ | — | $ | 36,319 | $ | 90,744 | $ | — |
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 current fiscal period, the Distributor retained such 12b-1 fees as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
12b-1 fees retained | $ | 530 | $ | 16,992 | $ | 248,519 | $ | 446 |
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 current fiscal period as follows:
Global Total Return Bond | High Income Bond | Strategic Income | U.S. Infrastructure Bond | |||||||||||||
CDSC retained | $ | — | $ | 5,726 | $ | 24,550 | $ | 141 |
As of the end of the reporting period, Nuveen owned shares of the following Funds:
Global Total Return Bond | U.S. Infrastructure Bond | |||||||
Class A Shares | — | 2,500 | ||||||
Class C Shares | 2,280 | 2,500 | ||||||
Class R3 Shares | 2,280 | — | ||||||
Class I Shares | 676,175 | 345,000 |
8. Borrowing Arrangements
During the current fiscal period, the Funds, along with certain other funds managed by the Adviser (“Participating Funds”), established a 364-day, $2.53 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which includes High Income Bond. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including Global Total Return, Strategic Income and U.S. Infrastructure Bond, along with a number of Nuveen closed-end funds. The credit facility expires in July 2016 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During December 2015, High Income Bond utilized the facility at an average daily balance and average annual interest rate of $20,539,855 and 1.59%, respectively. None of the other Funds utilized this facility.
112 | Nuveen Investments |
Fund Information
Fund Manager Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606
Sub-Adviser Nuveen Asset Management, LLC 333 West Wacker Drive Chicago, IL 60606 | Independent Registered PricewaterhouseCoopers LLP Chicago, IL 60606
Custodian State Street Bank & Trust Boston, MA 02111
U.S. Bank National Milwaukee, WI 53202 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Transfer Agent and Boston Financial Nuveen Investor Services P.O. Box 8530 Boston, MA 02266-8530 (800) 257-8787 |
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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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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
Nuveen Investments | 113 |
Used in this Report
Asset-Backed Securities (ABS): Securities whose value and income payments are derived from and collateralized by a specific pool of underlying assets. The pool of assets typically is a group of small and/or illiquid assets that may be difficult to sell individually. The underlying pools of asset-backed securities often include payments from credit cards, auto loans or mortgage loans.
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Barclays U.S. Aggregate Bond Index: An unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage-backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays Global Aggregate Unhedged Bond Index: An index that provides a broad-based measure of the global investment grade fixed-rate debt markets. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays High Yield 2% Issuer Capped Index: An issuer-constrained version of the U.S. Corporate High-Yield Index that covers the U.S. dollar denominated, non-investment grade, fixed-rate, taxable corporate bond market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Barclays Taxable Municipal Aggregate Eligible Index: A rules based, market-value weighted index engineered for the long-term taxable bond market. To be included in the index, the bonds must meet the eligibility requirements of the U.S. Aggregate Index. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Barclays U.S. Corporate High Yield Bond Index: An index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Barclays U.S. Corporate Investment Grade Index: A broad-based benchmark that measures the investment grade, fixed-rate, taxable corporate bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Commercial Mortgage-Backed Securities (CMBS): Commercial mortgage-backed securities are backed by cash flows of a mortgage or pool of mortgages on commercial real estate. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. CMBS are typically characterized by the following: i) loans on multi-family housing, non-residential property, ii) payments based on the amortization schedule of 25-30 years with a balloon payment due usually after 10 years, and iii) restrictions on prepayments.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Lipper General & Insured Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper General & Insured Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
114 | Nuveen Investments |
Lipper Global Income Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Income 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 High Current Yield Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper High Current Yield 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 Multi-Sector Income Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Multi-Sector Income Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Mortgage-Backed Securities (MBS): Mortgage-backed securities (MBS) are bonds backed by pools of mortgages, usually with similar characteristics, and which return principal and interest in each payment. MBS are composed of residential mortgages (RMBS) or commercial mortgages (CMBS). RMBS are further divided into agency RMBS and non-agency RMBS, depending on the issuer.
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.
Residential Mortgage-Backed Securities (RMBS): Residential mortgage-backed securities are securities the payments on which depend primarily on the cash flow from residential mortgage loans made to borrowers that are secured by residential real estate. RMBS consist of agency and non-agency RMBS. Agency RMBS have agency guarantees that assure investors that they will receive timely payment of interest and principal, regardless of delinquency or default rates on the underlying loans. Agency RMBS include securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and other federal agencies, or issues guaranteed by them. Non-agency RMBS do not have agency guarantees. Non-agency RMBS have credit enhancement built into the structure to shield investors from borrower delinquencies. The spectrum of non-agency residential mortgage loans includes traditional jumbo loans (prime), alternative-A loans (Alt-A), and home equity loans (sub-prime).
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.
Nuveen Investments | 115 |
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Nuveen Investments: | ||||||||||||||
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 $225 billion as of December 31, 2015. | ||||||||||||||
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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 |
MSA-GHSU-1215D 14134-INV-B-02/17
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this registrant.
Item 6. Schedule of Investments.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Funds, Inc.
By | (Signature and Title) | /s/ Kevin J. McCarthy | ||||
Kevin J. McCarthy Vice President and Secretary |
Date: March 9, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | (Signature and Title) | /s/ Gifford R. Zimmerman | ||||
Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) |
Date: March 9, 2016
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: March 9, 2016