UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05309
Nuveen Investment Funds, Inc.
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: June 30, 2016
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Mutual Funds |
Nuveen Equity Funds |
| Semi-Annual Report June 30, 2016 |
Share Class / Ticker Symbol | ||||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||||||||
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Nuveen Global Infrastructure Fund | FGIAX | FGNCX | FGNRX | — | FGIYX | |||||||||||
Nuveen Real Asset Income Fund | NRIAX | NRICX | — | — | NRIIX | |||||||||||
Nuveen Real Estate Securities Fund | FREAX | FRLCX | FRSSX | FREGX | FARCX |
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NUVEEN | 3 |
to Shareholders
Dear Shareholders,
The U.S. economy is now seven years into the recovery, but its pace remains stubbornly subpar compared to past recoveries. Economic data continues to be a mixed bag, as it has been throughout this expansion period. While the unemployment rate fell below its pre-recession level and wages have grown slightly, a surprisingly weak jobs growth report in May cast doubt over the future strength of the labor market. The June employment report was much stronger, however, easing fears that a significant downtrend was emerging. The housing market has improved markedly but its contribution to the recovery has been lackluster. Deflationary pressures, including the dramatic slide in commodity prices, have kept inflation much lower for longer than many expected.
U.S. growth remains modest, while economic conditions elsewhere continue to appear vulnerable. On June 23, 2016, the U.K. voted to leave the European Union, known as “Brexit.” The outcome surprised the global markets, leading to high levels of volatility across equities, fixed income and currencies in the days following the vote. Although the turbulence subsided not long after and many asset classes have largely recovered, uncertainties remain about the Brexit separation process and the economic and political impacts on the U.K., Europe and the rest of the world.
In the meantime, global central banks remain accommodative in efforts to bolster growth. The European Central Bank and Bank of Japan have been providing aggressive monetary stimulus, including adopting negative interest rates in both Europe and Japan, as their economies continue to lag the U.S.’s recovery. China’s policy makers have also continued to manage its slowdown, but investors are still worried about where the world’s second-largest economy might ultimately land.
Many of these ambiguities – both domestic and international – have kept the U.S. Federal Reserve (Fed) from raising short-term interest rates any further since December’s first and only increase thus far. While markets rallied earlier in the year on the widely held expectation that the Fed would defer any increases until June, the unusually weak May jobs report and the Brexit concerns compelled the Fed to hold rates steady at its June meeting. Although labor market conditions improved in June, Britain’s “leave” vote is expected to keep the Fed on hold until later in 2016.
With global economic growth still looking fairly fragile, during certain periods financial markets were volatile over the past year. Although sentiment has improved and conditions have generally recovered from the intense volatility seen in early 2016 and following the Brexit vote in June, we expect that turbulence remains on the horizon for the time being. In this environment, Nuveen remains committed to both managing downside risks and seeking upside potential. If you’re concerned about how resilient your investment portfolio might be, we encourage you to talk to your financial advisor.
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
August 23, 2016
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Comments
Nuveen Global Infrastructure Fund
Nuveen Real Asset Income Fund
Nuveen Real Estate Securities Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Investments, Inc. For the Nuveen Global Infrastructure Fund, Jay L. Rosenberg has been the lead portfolio manager since its inception in 2007 and Tryg T. Sarsland has been the co-portfolio manager since 2012. For the Nuveen Real Asset Income Fund, Jay L. Rosenberg has been the lead portfolio manager and Jeffrey T. Schmitz, CFA, has been a co-manager since the Fund’s inception in 2011. Brenda A. Langenfeld, CFA, and Tryg T. Sarsland were added as co-managers in 2015. For the Nuveen Real Estate Securities Fund, Jay L. Rosenberg has served as a portfolio manager since he joined the Fund’s management team in 2005, while Scott C. Sedlak joined the team as a co-portfolio manager in 2011.
On the following pages, the portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended June 30, 2016.
Nuveen Global Infrastructure Fund
How did the Fund perform during the six-month reporting period ended June 30, 2016?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year, five-year and since inception periods ended June 30, 2016. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV underperformed the S&P Global Infrastructure Index and outperformed the Lipper classification average during the six-month reporting period.
What strategies were used to manage the Fund during the six-month reporting period and how did these strategies influence performance?
The Fund seeks to provide long-term growth of capital and income by investing primarily in equity securities issued by U.S. and non-U.S. companies that typically derive the majority of their value from owned or operated infrastructure assets. During the reporting period, our strategy for managing the Fund remained consistent as we focused on buying global infrastructure companies that own and operate long life assets that have visible cash flows, strong balance sheets, manageable amounts of leverage and inelastic demand characteristics. We believe these types of companies will have ongoing access to capital and the best chances for producing sustainable and growing cash flow. The Fund is structured using a number of core infrastructure companies that we believe should provide long-term outperformance versus the market, combined with more opportunistic holdings that we believe are undervalued by the market in the short term. We have exposure around the globe to a mixture of holdings that represent significant value, as well as positions in companies that may prove to be more stable in a slowly growing global economy.
During the six-month reporting period, the global infrastructure sector posted a 14.09% return as measured by the S&P Global Infrastructure Index. These results significantly outperformed both the broad U.S. equity market return of 3.84% as measured by the S&P 500® Index and the global equity market return of 1.58% as measured by the MSCI All Country World Index. In the first six weeks of the reporting period, concerns about global growth led to an equity market sell-off, but the more defensive global infrastructure
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.
Refer to the Glossary of Terms Used in this report for further definition of the terms used within this section.
NUVEEN | 5 |
Portfolio Managers’ Comments (continued)
universe held up much better. As those concerns waned and oil prices began to rebound, the resulting rally in equities lifted share prices in all areas. However, infrastructure was able to remain well ahead after falling much less earlier in the reporting period and gaining nearly as much as the broader equity universes during the rebound. Later in the reporting period, continued concerns about global growth, political uncertainty, especially in Europe thanks to the U.K.’s “Brexit” vote, and declining interest rates led investors to again favor the more defensive areas of the marketplace that are less sensitive to the global economic cycle such as infrastructure. The continuing rally in the price of crude oil lifted midstream pipeline companies after a very difficult 2015, helping the segment post some of the best results among the infrastructure sectors during the reporting period. From a geographic standpoint, U.S. holdings generally outperformed international holdings, especially late in the reporting period. Much of the outperformance was due to a stronger U.S. dollar as a result of the Brexit vote. On an absolute basis, all but three infrastructure sectors posted positive returns for the reporting period.
The Fund underperformed the benchmark S&P Global Infrastructure Index during the six-month reporting period with the biggest detraction coming from the pipeline, technology infrastructure and diversified infrastructure sectors. On the other hand, the Fund outperformed its Lipper peer group, benefiting from favorable results in the electric utilities, gas utilities and seaport sectors.
The pipeline sector detracted the most from the Fund’s relative performance versus the benchmark. Our underweight position in the sector weighed on results, although we had been adding to the group consistently during the period to narrow the gap. Underlying stock prices for the pipeline group have remained closely tied to the price of crude oil, which has moved significantly higher after the February lows. As a result of the rebound in the commodity, investors moved back into midstream energy names and the sector posted a more than 30% return during the reporting period.
Technology infrastructure, a sector not represented in the benchmark, was also a drag in terms of the Fund’s relative performance. Holdings in the portfolio were up almost 8% during the reporting period, but that still lagged the overall infrastructure index return. Cellular tower company SBA Communications Corporation (SBA) was the primary detractor. The company experienced some technical selling pressure due to its exposure to Brazil, which is greater than the other companies in the cell tower space as U.S.-focused providers posted better absolute returns. SBA’s growth outlook also slowed relative to its peer group after a period of significant expansion. However, we continue to like and favor this name in our portfolio as it looks attractively valued relative to its peers.
Within diversified infrastructure, the Fund’s relative performance in the sector was most adversely affected by our underweight position in Australian-based Macquarie Infrastructure Corporation. Recently, given the significant number of energy-related assets the company owns and operates, it has been highly correlated to the commodities markets, especially crude oil prices. This has lifted company shares, causing our underweight to be a drag on performance versus the benchmark.
The electric utilities sector was the strongest area within the portfolio on a relative basis. Given the defensive leadership in the market during the period, the sector as a whole performed quite well. Although the Fund held a substantial underweight position in the electric utilities group, our security selection within the sector more than made up for it. One of our common themes in managing this portfolio is that policy and regulation have a significant impact on many of the more highly regulated sectors in the infrastructure universe. Therefore, we often make shifts in the portfolio’s weights as a result of the political landscape where the companies operate. Within electric utilities, the Fund was rewarded for not holding two large benchmark constituents during the period, Iberdrola SA and Scottish and Southern Energy PLC (SSE plc). Heading into the U.K. referendum vote, we chose to reduce the Fund’s overall exposure to U.K.-domiciled companies such as SSE. The U.K. companies the Fund did continue to own were largely in the water utilities area, which we believed would be less adversely impacted in the event of a Brexit vote. This positioning benefited the portfolio as U.K. names and other European holdings declined dramatically on the heels of the vote, much due to downward pressure in the currency markets relative to the U.S. dollar. SSE posted negative returns, significantly underperforming the overall electric utilities sector. The other country that was under significant political pressure was Spain, which has not had a coalition government since the general election late last year. The populist, anti-austerity party Unidos Podemos had been gaining traction, hampering efforts to form a government. This party’s outspoken support for a possible secession of Catalonia, which would effectively break Spain apart, elevated the uncertainty in Spain, which we chose to largely avoid. The election held in Spain just days after the U.K. referendum actually had a favorable outcome relative to expectations and led to the belief that a coalition government may be possible sooner than expected. While this was a positive development, Iberdrola also posted negative absolute performance for the period, substantially underperforming the overall sector.
6 | NUVEEN |
Within gas utilities, the portfolio was rewarded for its ownership in domestic companies that have more regulated distribution businesses and also pipeline assets. The gas utilities sector benefited from expected growth rates that appear superior to those found in the electric utilities space, as well as from potential merger and acquisition (M&A) activity as other utilities look for ways to grow their regulated asset base. Along with the M&A bid in the marketplace, many of our holdings benefited from the rebound in oil prices given their pipeline exposures. The Fund’s most significant contributor to relative performance within the space was its underweight exposure to French utility Engie, a large benchmark constituent. Engie continued to be affected by muted energy demand in Europe due to the lackluster economy. The company also cut its dividend during the reporting period, which put additional downward pressure on its stock price. Among the benchmark holdings in gas utilities, Engie was the worst performer and the only name with a negative absolute return.
The seaport sector continued to perform well for the Fund on a relative basis, but was one of the few sectors that posted negative absolute returns. The Fund’s underweight to the group aided relative returns, while security selection also contributed favorably. In particular, the Chinese and Australian benchmark constituents were under the most pressure and the Fund held underweights in both regions. Within the infrastructure universe, the seaport sector is the most exposed to cyclicality and global growth. Throughputs globally have continued to fall as a result of slower economic growth and reduced trade, affecting not only commodities but also consumer goods as retailing has been soft recently as well. Our expectations for global growth continued to be modest with the possibility even for growth to continue to wane, which was the rationale behind the Fund’s underweight to the sector.
Our outlook remained constructive regarding the more highly regulated electric utilities in the U.S. and Europe, with the exception of the U.K. and Spain. While the sector was the largest in terms of portfolio weight, the Fund remained substantially underweight relative to the benchmark, given its elevated exposure in electric utilities. Pipelines overtook toll roads to become the Fund’s second largest weight (while still underweight versus benchmark) as the group posted strong returns bolstered by the rise in oil prices. Positioning within that sector remained focused on quality companies with well-diversified counterparty risk relative to their upstream shipping contracts. The Fund continued to favor core/higher conviction holdings in which we have more confidence regarding future recurring cash flows. In more general terms, we maintained a higher quality, lower beta bias in the portfolio. The Fund was well positioned in regard to the U.K. vote to leave the European Union (EU). While it was still somewhat of a surprise outcome, we had substantially reduced the Fund’s exposure to the region overall. We believed the portfolio’s remaining U.K. exposure, the bulk of which was water utilities, was much better insulated than other companies and sectors.
Nuveen Real Asset Income Fund
How did the Fund perform during the six-month reporting period ended June 30, 2016?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year and since inception periods ended June 30, 2016. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV outperformed the new Real Asset Income Blend benchmark, the Barclays U.S. Corporate High Yield Index, the Lipper classification average and the old Real Asset Income Blend benchmark during the six-month reporting period.
Effective December 31, 2015, the Real Asset Income Blend Index constituents were changed to the following: 28% S&P Global Infrastructure Index, 21% FTSE EPRA/NAREIT Developed Index, 18% Wells Fargo Hybrid & Preferred Securities REIT Index, 15% Barclays Global Capital Securities Index and 18% Barclays U.S. Corporate High Yield Bond Index. The benchmark change was made for three primary reasons. First, the management team believes the new benchmark better approximates what the Fund’s expected weighted average exposures to real estate and infrastructure common equity, preferred securities and debt are likely to look like over time. Second, the new benchmark should reduce the Fund’s performance differential as a result of country/currency exposures (the former benchmark had a U.S. bias versus the more global universe of securities from which the Fund is constructed). Third, the management team believes the new benchmark more accurately reflects the types of securities held by the Fund. There was no change to the Fund’s Barclays benchmark or its Lipper peer group.
Prior to December 31, 2015, the Real Asset Income Blend Index constituents were as follows: 33% S&P Global Infrastructure Index, 12% BofA/Merrill Lynch Preferred Fixed Rate Index, 15% MSCI U.S. REIT Index, 20% BofA/Merrill Lynch REIT Preferred Index and 20% Barclays U.S. Corporate High Yield Bond Index.
NUVEEN | 7 |
Portfolio Managers’ Comments (continued)
What strategies were used to manage the Fund during the six-month reporting period and how did these strategies influence performance?
The Fund seeks a high level of current income with a secondary objective of capital appreciation by investing in a global portfolio of infrastructure and commercial real estate related securities (i.e. real assets) across the capital structure. These securities include a combination of infrastructure and real estate common stock, infrastructure and real estate preferred stock, and infrastructure and real estate related debt. Our goal is to combine these securities into a portfolio that provides investors with an attractive level of income and dampens levels of risk versus the broader equity market. We continued to select securities using an investment process that screens for companies and assets across the real assets market that provide higher yields. From the group of securities providing significant yields, we focus on owning those companies and securities with the highest total return potential in the Fund. Our process places a premium on finding securities whose revenues come from tangible assets with long-term concessions, contracts or leases and are therefore capable of producing steady, predictable and recurring cash flows. The Fund’s management team employs a bottom-up, fundamental approach to security selection and portfolio construction. We look for stable companies that demonstrate consistent and growing cash flow, strong balance sheets and histories of being good stewards of shareholder capital.
With the backdrop of heightened volatility, dramatically falling interest rates and rebounding oil prices, all five “real asset” categories represented in the new Real Asset Income Blend benchmark produced positive absolute returns during the six-month reporting period. Benchmark results were led by the global infrastructure sector, which experienced strong gains of 14.09% as measured by the S&P Global Infrastructure Index, significantly outpacing both the broad U.S. equity market return of 3.84% as measured by the S&P 500® Index and the global equity market return of 0.66% as measured by the MSCI All Country World Index. The more defensive global infrastructure universe held up much better during the period’s early equity market sell-off, and also rallied along with oil prices starting in mid-February. Later in the reporting period, continued concerns about global growth, political uncertainty in Europe thanks to the U.K.’s “Brexit” vote and declining interest rates led investors to again favor more defensive areas that are less sensitive to the global economic cycle such as infrastructure. The public commercial real estate sector posted a 9.38% return as measure by the FTSE EPRA/NAREIT Developed Index during the reporting period, also substantially outperforming the broader global equity markets. Real estate shares were supported by positive commercial real estate fundamentals as well as declining interest rates as the U.S. Federal Reserve (Fed) remained on hold, the European Central Bank embarked on additional monetary easing and U.K. voters shocked the markets with their “Brexit” vote. Rates for 10-year Treasuries, for example, fell from 2.27% at the start of the reporting period to 1.49% by June 30, 2016. High yield indices recovered strongly after a rough start to the reporting period. The overall high yield market, as measured by the Barclays High Yield Index, produced a 9.06% return during the reporting period. The preferred benchmarks for the Fund both turned in positive returns as well, but were somewhat muted relative to the other segments with the Wells Fargo Hybrid & Preferred Securities REIT Index gaining 6.81% and the Barclays Global Capital Securities Index up 3.16%.
The Fund continued to generate a consistent gross yield that remained above our overall yield hurdle, while producing a total return ahead of both its old and new comparative Real Asset Income Blend benchmarks. We attempt to add value versus the benchmark in two ways: by re-allocating money among five main security types when we see pockets of value at differing times and, more importantly, through individual security selection. The Fund’s outperformance relative to the benchmark was driven by favorable results across three of the five sections of its portfolio, led by the Real Estate Investment Trust (REIT) common equity segment, followed by the infrastructure and REIT preferred segments.
The most significant contributor to the Fund’s outperformance of its benchmark was the REIT common equity portion of the portfolio, mainly due to our security selection within the group. Our overweight to U.S. REITs, which generally outperformed global benchmarks, provided a tailwind to the portfolio, along with selection within that segment. Our focus on higher yielding companies in the portfolio led our health care and office positions to strongly outperform versus the benchmark constituents. These higher yielding holdings benefited from their defensive characteristics in the first few weeks of the reporting period, along with upside participation in the remainder of the period while interest rates remained well in check. Also, our lack of exposure to the central business district of London aided the Fund’s results given the performance of the London property market after the U.K.’s vote to leave the European Union.
Relative to the new comparative Real Asset Income Blend benchmark, the Fund also benefited from strong security selection in the infrastructure preferred space. Collectively, our holdings solidly outpaced the somewhat muted return of the overall sector; however, these gains were partially offset by an overweight position in the space. Some of our outperformance was the result of a lack of
8 | NUVEEN |
exposure to financial preferred securities, which make up a large percentage of the index, but that we do not own because of the Fund’s directive to own only infrastructure and real estate companies. Financial preferreds were adversely affected by the Brexit vote and declining interest rates. At the same time, our overweight position in electric utility preferreds benefited performance as the preponderance of issues in the Fund showed positive absolute returns. Utilities in general performed very well in the equity markets as defensive sectors were the leaders. In particular, two of the Fund’s U.S. electric utility preferreds that are convertible to equity provided the most outperformance as these securities traded in line with their equity brethren. In addition, our technology infrastructure preferreds, led by American Tower Corporation, performed very well during the period.
In the REIT preferred segment, both our security selection within the office segment as well as our underweight to the group led the way in terms of positive attribution. Our Alexandria Real Estate Preferred position added the most value in terms of security selection, contributing to our outperformance of the benchmark as medical offices continued to perform well. The longer-term leases and healthy fundamentals in this defensive sector helped it perform well against the backdrop of higher uncertainty and declining interest rates.
The global infrastructure equity segment was the most significant detractor during the period as the holdings in the portfolio underperformed the benchmark names by approximately 1% in absolute terms. Although the Fund benefited from convertible preferred holdings in U.S. electric utilities, our positions in non-U.S. electric utility equities, as well as an underweight to this strongly performing area overall, hampered its results. An underweight to pipelines also detracted as the names remained highly correlated to the price of crude oil, which was up substantially from the lows hit earlier in the year.
In the high yield portion of the portfolio, performance was hampered during the first five weeks of the reporting period by heightened concerns for the energy sector and independent power producers. The nearly 30% drop in oil prices from December 31, 2015 to February 11, 2016 was taken as a signal by the market that a global economic recession was imminent. The risk-averse environment in high yield caused the Fund’s holdings to underperform the index until mid-February, when investors returned to the asset class looking to benefit from the historically attractive credit spreads available. Risk appetites increased as the period progressed as flows into high yield increased dramatically and investors started to look across all segments of the universe for relative performance. Issuance of new bonds during the reporting period was historically quite low, further helping the technical backdrop for the high yield sector. The high yield portfolio’s relative performance improved substantially after the first five weeks of the reporting period, but still fell short of the high yield index.
As the reporting period progressed, we modestly reduced the Fund’s U.S. exposure to a little more than 55% of invested dollars, which is approximately 6% less than where it started the period. The shift was mostly because of a slight reduction in the high yield segment of the Fund’s portfolio as well as a reduction in real estate preferred shares. In the high yield space, we reduced on strength as spreads continued to narrow and a number of bonds performed well on an absolute basis. We also lowered our REIT preferred exposure slightly due to strength in the sector, which was the result of investors’ ongoing quest for yield in the midst of falling domestic interest rates. The underlying fundamentals within real estate remained strong relative to historic averages, while heightened uncertainty in Europe pushed investors increasingly toward U.S.-centric investments like commercial real estate, also benefiting the group. Our outlook for global growth remains somewhat sanguine which, combined with very easy global monetary policy, should keep interest rates relatively well contained in the absence of an unexpected uptick in global economic data. In turn, we believe this should benefit the higher yielding and longer asset duration companies we hold within infrastructure as well as real estate.
Where possible, we continued to shift the portfolio higher up the quality spectrum within the investable universe, and slightly down the yield ladder as a result. The broader allocation buckets of equities, preferred securities and high yield debt changed on the margin as we reallocated to areas we felt had better potential going forward. We will continue to make slight changes to the weights within those larger categories, while focusing on security selection as we attempt to add value with our bottom-up valuation methodology. Our preference within the preferred and debt portions of the portfolio is to own subordinated positions from higher quality companies, rather than more senior positions of lower quality companies.
In terms of portfolio weights, the Fund’s overall allocation to common equities ended the reporting period at roughly 45%, while preferred securities equaled approximately 36% of the portfolio. Within common equity, we ended the period with about 26% of the portfolio allocated to infrastructure equities and about 19% invested in the REIT equity sector. While real estate fundamentals remain
NUVEEN | 9 |
Portfolio Managers’ Comments (continued)
supportive, we believe that growth within the sector is beginning to slow a bit, especially in some of the larger coastal markets such as New York City and San Francisco. In most major property sectors, building prices are also well past 2007 peak prices, which may indicate that REITs are a little later in their cycle. As a result, within real estate we continued to have a modest underweight to REIT equities and, after trimming our REIT preferred holdings during the reporting period, a very small underweight there as well.
The Fund’s high yield fixed income exposure ended the period at around 14% of the portfolio. Within the high yield portfolio, we continued to find attractive opportunities to add to REIT credits, especially in the health care, suburban office and industrial subsectors. Although high-yield pipeline exposure remained our largest concentration at slightly less than 3% of the Fund’s overall portfolio, that exposure was down from 4% at the beginning of the reporting period. While our next three biggest concentrations were in data centers, real estate and hospitals, we continued to invest our high yield portfolio across the spectrum of infrastructure. Our outlook for the high yield sector for the remainder of 2016 is positive. However, we are bound to see some periods of softness given the rapid run-up in total returns over the past five months, coupled with headlines around the impact of Brexit, oil prices and other global concerns.
During the reporting period, the Fund shorted short-term U.S. Treasury futures contracts to hedge against potential increases in interest rates. The effect of these positions on performance was negligible during the period.
Nuveen Real Estate Securities Fund
How did the Fund perform during the six-month reporting period ended June 30, 2016?
The table in the Fund Performance and Expense Ratios section of this report provides total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended June 30, 2016. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV). The Fund’s Class A Shares at NAV underperformed the MSCI U.S. REIT Index and outperformed the Lipper classification average during the six-month reporting period.
What strategies were used to manage the Fund during the six-month reporting period and how did these strategies influence performance?
The Fund seeks to provide above average income potential and long-term capital appreciation by investing in income producing common stocks of publicly traded companies engaged in the real estate industry. During the reporting period, we continued to implement the Fund’s strategy of investing on a relative value basis with a focus on individual stocks rather than economic or market cycles. We also continued to invest the Fund in a fairly sector neutral manner (with a couple of notable exceptions within the community center, health care and net lease sectors) with a goal of providing a well-diversified portfolio of public real estate stocks to our shareholders. A sector neutral approach reduces the impact of any one property type on performance. Additionally, we continued to invest in a broader universe of stocks than our benchmark index to access more dynamic parts of the commercial real estate cycle.
During the six-month reporting period, the public commercial real estate sector returned 13.56% as measured by the MSCI U.S. REIT Index in an environment where broader equity markets experienced considerable volatility and only posted modest gains. Real estate investment trusts (REITs) significantly outperformed U.S. equities, as measured by the S&P 500® Index, posting a more than 9% return advantage. Strong REIT performance was aided by a nearly 80 basis point drop in the yield of 10-year Treasuries during the reporting period. While labor market conditions and economic growth in the U.S. were superior to most of the other developed economies around the globe, heightened uncertainty and softer economic conditions outside the U.S. led the Federal Reserve to a more gradual pace in monetary policy normalization. REIT fundamentals have remained quite favorable relative to historic averages; however, projections for net operating income growth have moderated in some sectors and may be poised to decline in others, indicating we may be further along in the commercial real estate cycle. Also, after a long period of muted building activity, several sectors are beginning to see more development, which could lead to concerns around supply. Given that property values have more than doubled since the nadir of the financial crisis and we are more than seven years into the recovery, investors’ expectations regarding the likely pace of gains for commercial real estate should be tempered. But should interest rates remain low, relative performance within the group is likely to remain reasonably favorable.
10 | NUVEEN |
Office, net lease and technology infrastructure sectors were responsible for the majority of the Fund’s shortfall versus the benchmark MSCI U.S. REIT Index. The office sector was the leading detractor of relative performance mostly as a result of our overweight position in SL Green Realty Corporation, which saw its shares sell off sharply during the reporting period. On the company’s earnings call in January, management reported acceptable earnings, but cited increasing economic headwinds that could slow job creation in New York City and soften demand for its office space. These comments then raised questions about how late in the real estate cycle the city might be. This further affected SL Green to the downside given the company’s large One Vanderbilt development, which would potentially add substantial office space into a softer market environment. SL Green was also weighed down by its higher degree of leverage than most of its competitors, which raised uncertainty about its cost structure should interest rates rise in the future. However, company management continued to indicate it will sell some assets with an eye toward debt reduction.
The Fund’s relative underperformance in net lease was primarily the result of our underweight position in the sector, particularly in Realty Income Corporation. The net lease sector was the third best-performing REIT sector on an absolute basis during the period as concerns around global growth led to a more sanguine outlook for interest rates, which benefits the sector’s longer duration leases in relative terms. We have historically maintained a rather sector-neutral position in net lease relative to the benchmark. However, in the last year, a number of new companies were added to the index via IPOs and spin-offs that we have not wanted to invest in because of asset quality and/or the relatively small number of shares available in the marketplace relative to the company size. Specific to Realty Income, we have continued to underweight the position based on its higher valuation relative to the group and especially to National Retail Properties, Inc., our favored name in the sector. That positioning, however, worked against the Fund.
The Fund’s relative underperformance in technology infrastructure was primarily the result of our modest underweight in this top-performing sector, particularly in data center companies. Data centers lease space to companies that store massive amounts of data or provide web-based storage or cloud-based computing solutions. Given the seemingly insatiable demand for data from both companies and individuals, the fundamentals remained good within the space. However, we believed the positive fundamentals were already reflected for the most part in the share prices of these companies. Our more cautious outlook for the sector based on valuation led the Fund to have a slight underweight, which detracted from relative returns due to the sector’s strong advance.
On the other hand, several sectors produced favorable relative results and helped the Fund outperform its Lipper peers, including health care REITs, industrial and malls. Within health care, the Fund benefited from security selection, which outweighed the negative impact of an underweight position in the sector. In particular, results were boosted by an underweight position in HCP Inc., the Fund’s largest active underweight in the space. HCP shares sold off sharply early in the reporting period after the company released its fourth-quarter earnings report, which included weaker-than-expected guidance for 2016. HCP continued to be weighed down by issues surrounding its largest tenant, HCR ManorCare, which has financial challenges and is being investigated by the Department of Justice.
Regarding industrial, both the Fund’s overweight to as well as stock selection within this strongly performing group were the primary drivers of outperformance. The industrial sector continued to benefit from the best fundamentals of any of the property groups as it relates to strong pricing power driven by demand and relatively limited new supply. While global trade and growth weren’t terribly robust during the reporting period, the industrial sector continued to capitalize on the move toward online retailing and the logistical needs of retailers to move their merchandise directly to consumers. Our position in First Industrial Realty Trust, Inc. was the leading contributor to relative outperformance within the sector due to a significant gain in the company’s shares. The Fund held a substantial overweight to the name throughout the period based on valuation metrics, including both the cash-flow multiple the stock was trading at relative to its peers as well as a significant cap rate spread. First Industrial Realty disproportionally benefited during the period from new leases to e-commerce companies. The company also attracted investor capital due to its U.S.-centric property exposure relative to other industrial names with higher amounts of European exposure, which were more adversely impacted by the results of the U.K.’s referendum vote at the end of June.
In the mall sector, the Fund benefited from positive company selection mainly due to substantial underweights in names like CBL & Associates Properties, Inc. and Taubman Centers Inc. Within the mall space, our preference is to own companies with very high-quality asset portfolios that are better positioned in the marketplace and are less impacted by the continuing growth trend in online retailing. For that reason, the Fund did not own CBL & Associates Properties and maintained substantial underweights in other mall companies with similar profiles. This positioning benefited the Fund as blue-chip, high quality mall retailers substantially outperformed the rest of
NUVEEN | 11 |
Portfolio Managers’ Comments (continued)
the category. In the case of Taubman Centers, the company’s underperformance was largely the result of its capital allocation decisions. While the company owns a very high-quality collection of assets, its stock has performed poorly due to an ongoing development in Puerto Rico, where questions remain about lease-ups due to the island’s municipal debt crisis. Also, the company has announced a large capital allocation to re-develop an existing facility in Beverly Hills. The high cost of the Los Angeles area project, coupled with underwhelming company projections for returns on the investment, have turned market sentiment decidedly against the company. As a result, our underweight position benefited the Fund relative to benchmark.
In terms of changes during the reporting period, we continued to maintain slight biases to large cap over small cap and high quality over lower quality, which was reflected in the Fund’s focus on core/high-conviction names. We continued to favor companies that operate under shorter lease terms as well, although we did add substantially to the net lease sector to narrow the Fund’s underweight to the sector amidst a declining interest rate environment. Much of the increase to net lease was funded by our reduction to apartments, especially companies with more concentrated coastal exposure where a softening in fundamentals led us to other areas that we believed offered better total return opportunities. We maintained overweights to industrial and community centers, especially grocery-anchored shopping centers where we see continued strength in fundamentals, which were offset by underweights to hotels, net lease and health care REITs. In the remaining sectors, the Fund’s exposures are relatively close to the benchmark weights.
12 | NUVEEN |
and Dividend Information
Risk Considerations
Nuveen Global Infrastructure Fund
Mutual fund investing involves risk; principal loss is possible. Concentration in infrastructure-related securities involves sector risk and concentration risk, particularly greater exposure to adverse economic, regulatory, political, legal, liquidity, and tax risks associated with master limited partnerships (MLPs) and real estate investment trusts (REITS). Foreign investments involve additional risks including currency fluctuations and economic and political instability. These risks are magnified in emerging markets. Common stocks are subject to market risk or the risk of decline. Small- and mid-cap stocks are subject to greater price volatility. The use of derivatives involves substantial financial risks and transaction costs. The Fund’s potential investment in other investment companies means shareholders bear their proportionate share of fund expenses and indirectly, the expenses of other investment companies. Fund investments in exchange trade funds (ETFs) may involve tracking error. Preferred securities may involve greater credit risk than other debt instruments.
Nuveen Real Asset Income Fund
Mutual fund investing involves risk; principal loss is possible. Equity investments such as those held by the Fund are subject to market risk, call risk, derivatives risk, other investment companies risk, common stock risk, and tax risks associated with master limited partnerships (MLPs). Concentration in specific sectors may involve greater risk and volatility than more diversified investments: real estate sector involves the risk of exposure to economic downturns and changes in real estate values, rents, property taxes, interest rates and tax laws; infrastructure-related securities may involve greater exposure to adverse economic, regulatory, political, legal, and other changes affecting such securities. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity, and differing legal and accounting standards. These risks are magnified in emerging markets. Investments in small- and mid-cap companies are subject to greater volatility. In addition, the Fund will bear its proportionate share of any fees and expenses paid by the exchange trade funds (ETFs) in which it invests.
Debt or fixed income securities such as those held by the Fund are subject to market risk, credit risk, interest rate risk and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure and therefore are subject to greater credit risk. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Real Estate Securities Fund
Mutual fund investing involves risk; principal loss is possible. Common stocks and REITs such as those held in the Fund involve market risk, concentration risk, sector risk, and non-diversification risk. The real estate industry is greatly affected by economic downturns that may persist as well as changes in property values, taxes, and regulatory developments. Foreign investments involve additional risks including currency fluctuations, and economic or political instability. These risks are magnified in emerging markets. The use of derivatives involves substantial financial risks and transaction costs. Small cap stocks may experience more volatility than large cap stocks.
Dividend Information
Regular dividends are declared and distributed annually for Nuveen Global Infrastructure Fund, declared and distributed monthly for Nuveen Real Asset Income Fund and declared and distributed quarterly for Nuveen Real Estate Securities Fund. To permit a Fund to maintain a more stable dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income it actually earned 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 NAV. Conversely, if the Fund has cumulatively
NUVEEN | 13 |
Risk Considerations and Dividend Information (continued)
paid out dividends more than it has earned, the excess will constitute negative UNII that will likewise be reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders.
In certain instances, a portion of each Fund’s distributions may be paid from sources or comprised of elements other than ordinary income, including capital gains and/or a return of capital. This is generally due to the fact that the tax character of Fund distributions for a fiscal year is dependent upon the amount and tax character of distributions received from securities held in the Fund’s portfolio. Distributions received from certain securities in which the Fund invests, most notably real estate investment Trust (REIT) securities, may be characterized for tax purposes as ordinary income, long-term capital gain and/or a return of capital. The issuer of a security typically reports the tax character of its distributions only once per year, generally during the first two months of the following calendar year. The full amount of the distributions received from such securities is included in the Fund’s ordinary income during the course of the year until such time the Fund is notified by the issuer of the actual tax character. To the extent that at the time of a particular distribution the Fund estimates that a portion of that distribution is attributable to a source or sources other than ordinary income, the Fund would send shareholders a notice to that effect. The final determination of the sources and tax character of all distributions for the fiscal year is made after the end of the fiscal year.
Additional Dividend Information for Nuveen Real Asset Income Fund and Nuveen Real Estate Securities Fund
Nuveen Real Asset Income Fund and Nuveen Real Estate Securities Fund seek to pay regular dividends at a rate that reflects the cash flow received from each Fund’s investments in portfolio securities. Fund distributions are not intended to include expected portfolio appreciation; however, the Funds invest in securities that make payments which ultimately may be fully or partially characterized for tax purposes by the securities’ issuers as gains or return of capital. While the reported sources of distributions may include capital gains and/or return of capital for tax purposes, the Fund intend to distribute only the net cash flow received as opposed to a distribution rate based on long-term total return. This tax treatment will generally “flow through” to the Funds’ distributions, but the specific tax treatment is often not known with certainty until after the end of the Funds’ tax year. The tables below provide an estimate of the Funds’ 2016 calendar year-to-date distribution sources.
Nuveen Real Asset Income Fund – Data as of June 30, 2016
Calendar Year 2016 | ||||||||||||||||||
Estimated Percentage of the Distribution | Estimated Per Share Amounts | |||||||||||||||||
Share Class | Ticker Symbol | Net | Realized Gains | Return of Capital | Distributions | Net | Realized Gains | Return | ||||||||||
Class A | NRIAX | 95.1% | 0.0% | 4.9% | $0.5940 | $0.5650 | $0.0000 | $0.0290 | ||||||||||
Class C | NRICX | 96.5% | 0.0% | 3.5% | $0.5100 | $0.4922 | $0.0000 | $0.0178 | ||||||||||
Class I | NRIIX | 94.8% | 0.0% | 5.2% | $0.6210 | $0.5887 | $0.0000 | $0.0323 |
Nuveen Real Estate Securities Fund – Data as of June 30, 2016(1)
Calendar Year 2016 | ||||||||||||||||||
Estimated Percentage of the Distribution | Estimated Per Share Amounts | |||||||||||||||||
Share Class | Ticker Symbol | Net | Realized Gains | Return | Distributions | Net | Realized Gains | Return | ||||||||||
Class A | FREAX | 87.2% | 12.8% | 0.0% | $0.3113 | $0.2716 | $0.0397 | $0.0000 | ||||||||||
Class C | FRLCX | 93.3% | 6.7% | 0.0% | $0.2204 | $0.2056 | $0.0148 | $0.0000 | ||||||||||
Class R3 | FRSSX | 89.2% | 10.8% | 0.0% | $0.2870 | $0.2561 | $0.0309 | $0.0000 | ||||||||||
Class R6 | FREGX | 92.2% | 7.8% | 0.0% | $0.3462 | $0.3193 | $0.0269 | $0.0000 | ||||||||||
Class I | FARCX | 87.0% | 13.0% | 0.0% | $0.3444 | $0.2995 | $0.0449 | $0.0000 |
(1) | The Fund owns REIT securities which attribute their distributions to various sources, including net Investment income, gains and return of capital. The estimates above are based on prior year attribtution percentages, which can be expected to differ, at least slightly, from the actual final attributions for the current year. |
14 | NUVEEN |
These estimates should not be used for tax reporting purposes, and the distribution sources may differ for financial reporting than for tax reporting. The final determination of the tax characteristics of all distributions paid in 2016 will be made in early 2017 and reported to you on Form 1099-DIV. An electronic copy of this notice is also posted at www.nuveen.com/mf under each Fund’s web page.
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16 | NUVEEN |
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 an agreement by the investment adviser to waive certain fees and/or reimburse expenses 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 | 17 |
Fund Performance and Expense Ratios (continued)
Nuveen Global Infrastructure Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 June 30, 2016
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class A Shares at NAV | 13.54% | 7.01% | 8.38% | 5.46% | ||||||||||||
Class A Shares at maximum Offering Price | 7.06% | 0.86% | 7.11% | 4.73% | ||||||||||||
S&P Global Infrastructure Index | 14.09% | 3.72% | 6.16% | 2.27% | ||||||||||||
Lipper Global Infrastructure Funds Classification Average | 12.22% | 2.01% | 6.29% | 2.31% | ||||||||||||
Class C Shares | 13.11% | 6.31% | 7.58% | 11.48% | ||||||||||||
Class R3 Shares | 13.33% | 6.75% | 8.00% | 11.95% | ||||||||||||
Class I Shares | 13.67% | 7.29% | 8.65% | 5.72% | ||||||||||||
Cumulative | ||||||||||||||||
Since Inception | ||||||||||||||||
Class R6 Shares | —% |
Since inception returns for Class A Shares and Class I Shares, and for the comparative index and Lipper classification average, are from 12/17/07; since inception returns for Class C Shares and Class R3 Shares are from 11/03/08. Class R6 Shares commenced operations were established on June 30, 2016. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within 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 | 1.42% | 2.17% | 1.67% | 0.97% | 1.17% | |||||||||||||||
Net Expense Ratios | 1.22% | 1.97% | 1.47% | 0.77% | 0.97% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through September 30, 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 1.00% of the average daily net assets of any class of Fund shares. This expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund. Class R6 Shares were established on June 30, 2016. Accordingly, other expenses are estimated for the current fiscal year.
18 | NUVEEN |
Nuveen Real Asset Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 June 30, 2016
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class A Shares at NAV | 10.28% | 7.03% | 9.99% | |||||||||
Class A Shares at maximum Offering Price | 3.94% | 0.87% | 8.64% | |||||||||
Barclays U.S. Corporate High Yield Bond Index | 9.06% | 1.62% | 6.91% | |||||||||
Real Asset Income Blend Index (New Comparative Benchmark) | 9.33% | 6.47% | 9.29% | |||||||||
Real Asset Income Blend Index (Old Comparative Benchmark) | 10.24% | 9.10% | 9.56% | |||||||||
Lipper Global Flexible Portfolio Funds Classification Average | 3.35% | (1.83)% | 5.44% | |||||||||
Class C Shares | 9.86% | 6.26% | 9.19% | |||||||||
Class I Shares | 10.36% | 7.25% | 10.26% | |||||||||
Cumulative | ||||||||||||
Since Inception | ||||||||||||
Class R6 Shares | —% |
As previously noted in the Portfolio Managers’ Comments section of this report, effective December 31, 2015, the Real Asset Income Blended Index constituents were changed. The changes were made for three primary reasons. First, the management team believes the new benchmark better approximates what the Fund’s expected weighted average exposures to real estate and infrastructure common equity, preferred securities and debt are likely to look like over time. Second, the new benchmark should reduce the Fund’s performance differential as a result of country/currency exposures (the former Real Asset Income Blended Index had a U.S. bias versus the more global universe of securities from which the Fund is constructed). Third, the management team believes the new Real Asset Income Blended Index more accurately reflects the types of securities held by the Fund.
Since inception returns for Class A, C and I Shares are from 9/13/11. Class R6 Shares were established on June 30, 2016. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1%, also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class 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 R6 | Class I | |||||||||||||
Gross Expense Ratios | 1.23% | 1.98% | 0.88% | 0.97% | ||||||||||||
Net Expense Ratios | 1.17% | 1.92% | 0.83% | 0.92% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through September 30, 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 0.95% of the average daily net assets of any class of Fund shares. This expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund. Class R6 Shares were established on June 30, 2016. Accordingly, other expenses are estimated for the current fiscal year.
NUVEEN | 19 |
Fund Performance and Expense Ratios (continued)
Nuveen Real Estate Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 June 30, 2016
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 11.44% | 22.71% | 11.91% | 8.06% | ||||||||||||
Class A Shares at maximum Offering Price | 5.04% | 15.67% | 10.59% | 7.42% | ||||||||||||
MSCI U.S. REIT Index | 13.56% | 24.10% | 12.53% | 7.35% | ||||||||||||
Lipper Real Estate Funds Classification Average | 10.61% | 19.29% | 11.23% | 6.55% | ||||||||||||
Class C Shares | 11.02% | 21.77% | 11.07% | 7.26% | ||||||||||||
Class R3 Shares | 11.29% | 22.41% | 11.62% | 7.79% | ||||||||||||
Class I Shares | 11.56% | 23.03% | 12.19% | 8.33% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 11.69% | 23.24% | 10.10% |
Since inception return for Class R6 Shares is from 4/30/13. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) of 1%, also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class 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 | ||||||||||||||||
Expense Ratios | 1.30% | 2.05% | 1.55% | 0.87% | 1.05% |
20 | NUVEEN |
Summaries as of June 30, 2016
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.
Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Nuveen Global Infrastructure Fund
Portfolio Allocation
(% of net assets)
Common Stocks | 94.5% | |||
Real Estate Investment Trust Common Stocks | 3.0% | |||
Investment Companies | 1.0% | |||
Repurchase Agreements | 0.5% | |||
Other Assets Less Liabilities | 1.0% | |||
Net Assets | 100% |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings
(% of net assets)
Transurban Group | 5.0% | |||
NextEra Energy Inc. | 4.4% | |||
Enbridge Inc. | 3.7% | |||
Atlantia SpA | 3.3% | |||
Vinci S.A. | 2.9% |
Portfolio Composition
(% of net assets)
Transportation Infrastructure | 23.8% | |||
Electric Utilities | 20.1% | |||
Oil, Gas & Consumable Fuels | 19.2% | |||
Multi-Utilities | 10.5% | |||
Gas Utilities | 7.3% | |||
Other | 17.6% | |||
Repurchase Agreements | 0.5% | |||
Other Asset Less Liabilities | 1.0% | |||
Net Assets | 100% |
Country Allocation
(% of net assets)1
United States | 37.5% | |||
Canada | 10.6% | |||
Australia | 9.6% | |||
Italy | 8.3% | |||
France | 6.5% | |||
United Kingdom | 3.5% | |||
Japan | 2.9% | |||
Hong Kong | 2.9% | |||
New Zealand | 2.9% | |||
Spain | 2.8% | |||
Singapore | 1.8% | |||
Other | 9.7% | |||
Other Asset Less Liabilities | 1.0% | |||
Net Assets | 100% |
1 | Includes 5.4% (as a percentage of net assets) in emerging market countries. |
NUVEEN | 21 |
Holding Summaries (continued)
Nuveen Real Asset Income Fund
Portfolio Allocation
(% of net assets)
Common Stocks | 25.9% | |||
Real Estate Investment Trust Common Stocks | 18.1% | |||
Convertible Preferred Securities | 6.7% | |||
$25 Par (or similar) Retail Preferred | 21.2% | |||
Corporate Bonds | 13.5% | |||
$1,000 Par (or similar) Institutional Preferred | 7.8% | |||
Common Stock Rights | 0.0% | |||
Investment Companies | 1.8% | |||
Repurchase Agreements | 3.3% | |||
Other Assets Less Liabilities | 1.7% | |||
Net Assets | 100% |
Top Five Common Stock & Real Estate Investment Trust
Common Stock Holdings
(% of net assets)
Snam Rete Gas S.p.A. | 1.7% | |||
Enterprise Products Partnership LP | 1.7% | |||
National Grid PLC, Sponsored ADR | 1.6% | |||
Transurban Group | 1.5% | |||
Scottish and Southern Energy PLC | 1.3% |
Portfolio Composition
(% of net assets)
Real Estate Investment Trust | 20.2% | |||
Electric Utilities | 18.1% | |||
Multi-Utilities | 8.7% | |||
Oil, Gas & Consumable Fuels | 7.2% | |||
Transportation Infrastructure | 4.7% | |||
Retail | 4.0% | |||
Health Care | 3.8% | |||
Diversified | 3.4% | |||
Gas Utilities | 3.3% | |||
Industrial | 2.4% | |||
Other | 19.2% | |||
Repurchase Agreements | 3.3% | |||
Other Assets Less Liabilities | 1.7% | |||
Net Assets | 100% |
Country Allocation
(% of net assets)1
United States | 57.9% | |||
Canada | 9.2% | |||
Australia | 6.1% | |||
United Kingdom | 5.0% | |||
Singapore | 4.2% | |||
Italy | 2.6% | |||
Hong Kong | 2.3% | |||
New Zealand | 1.5% | |||
Mexico | 1.4% | |||
Belgium | 1.4% | |||
Portugal | 1.4% | |||
Other | 5.3% | |||
Other Assets Less Liabilities | 1.7% | |||
Net Assets | 100% |
1 | Includes 3.3% (as a percentage of net assets) in emerging market countries. |
22 | NUVEEN |
Nuveen Real Estate Securities Fund
Portfolio Allocation
(% of net assets)
Common Stocks | 0.6% | |||
Real Estate Investment Trust Common Stocks | 94.8% | |||
Investments Purchased with Collateral from Securities Lending | 11.2% | |||
Money Market Funds | 3.8% | |||
Other Assets Less Liabilities | (10.4)% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Retail | 28.3% | |||
Residential | 14.7% | |||
Special | 13.9% | |||
Office | 11.8% | |||
Health Care | 10.0% | |||
Industrial | 8.3% | |||
Diversified | 5.0% | |||
Other | 3.4% | |||
Investments Purchased with Collateral from Securities Lending | 11.2% | |||
Money Market Funds | 3.8% | |||
Other Assets Less Liabilities | (10.4)% | |||
Net Assets | 100% |
Top Five Common Stock & Real Estate Investment Trust Common Stock Holdings
(% of net assets)
Simon Property Group, Inc. | 9.5% | |||
Public Storage, Inc. | 5.9% | |||
Prologis Inc. | 4.6% | |||
Equity Residential | 4.4% | |||
Vornado Realty Trust | 3.7% |
NUVEEN | 23 |
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 June 30, 2016.
The beginning of the period is January 1, 2016.
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 following 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 Global Infrastructure 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 | $ | 1,135.40 | $ | 1,131.10 | $ | 1,133.30 | $ | 1,136.70 | ||||||||
Expenses Incurred During Period | $ | 6.48 | $ | 10.44 | $ | 7.80 | $ | 5.15 | ||||||||
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 | $ | 1,018.80 | $ | 1,015.07 | $ | 1,017.55 | $ | 1,020.04 | ||||||||
Expenses Incurred During Period | $ | 6.12 | $ | 9.87 | $ | 7.37 | $ | 4.87 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.22%, 1.97%, 1.47% and 0.97% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
* | Class R6 Shares commenced operations at the close of business on June 30, 2016, and therefore had no allocation of expenses during the current period. |
24 | NUVEEN |
Nuveen Real Asset Income 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 | $ | 1,102.80 | $ | 1,098.60 | $ | 1,103.60 | ||||||
Expenses Incurred During Period | $ | 6.06 | $ | 9.97 | $ | 4.76 | ||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value | $ | 1,019.10 | $ | 1,015.37 | $ | 1,020.34 | ||||||
Expenses Incurred During Period | $ | 5.82 | $ | 9.57 | $ | 4.57 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.16%, 1.91% and 0.91% for Classes A, C, and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
* | Class R6 Shares commenced operations at the close of business on June 30, 2016, and therefore had no allocation of expenses during the period. |
Nuveen Real Estate 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 | $ | 1,114.40 | $ | 1,110.20 | $ | 1,112.90 | $ | 1,116.90 | $ | 1,115.60 | ||||||||||
Expenses Incurred During Period | $ | 6.83 | $ | 10.76 | $ | 8.14 | $ | 4.58 | $ | 5.52 | ||||||||||
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 | $ | 1,018.40 | $ | 1,014.67 | $ | 1,017.16 | $ | 1,020.54 | $ | 1,019.64 | ||||||||||
Expenses Incurred During Period | $ | 6.52 | $ | 10.27 | $ | 7.77 | $ | 4.37 | $ | 5.27 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.30%, 2.05%, 1.55%, 0.87% and 1.05% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
NUVEEN | 25 |
Nuveen Global Infrastructure Fund
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 98.5% | ||||||||||||||||
COMMON STOCKS – 94.5% | ||||||||||||||||
Air Freight & Logistics – 0.5% | ||||||||||||||||
95,694 | BPost SA, (2) | $ | 2,449,638 | |||||||||||||
18,473 | Oesterreichische Post AG, (2) | 596,555 | ||||||||||||||
Total Air Freight & Logistics | 3,046,193 | |||||||||||||||
Commercial Services & Supplies – 1.9% | ||||||||||||||||
2,917,736 | China Everbright International Limited, (2) | 3,262,459 | ||||||||||||||
8,823 | Covanta Holding Corporation | 145,138 | ||||||||||||||
274,962 | Shanks Group PLC, (4) | 286,063 | ||||||||||||||
113,355 | Waste Connections Inc. | 8,167,228 | ||||||||||||||
Total Commercial Services & Supplies | 11,860,888 | |||||||||||||||
Construction & Engineering – 4.4% | ||||||||||||||||
479,319 | Ferrovial SA, (2) | 9,384,105 | ||||||||||||||
265,921 | Vinci S.A, (2) | 18,765,196 | ||||||||||||||
Total Construction & Engineering | 28,149,301 | |||||||||||||||
Diversified Telecommunication Services – 1.7% | ||||||||||||||||
37,310 | Cellnex Telecom S.A.U, (2), (3) | 585,489 | ||||||||||||||
1,348,203 | HKBN Limited, (2) | 1,421,994 | ||||||||||||||
552,872 | Infrastrutture Wireless Italiane SpA, (2) | 2,441,467 | ||||||||||||||
194,566 | Inmarsat PLC, (2) | 2,096,811 | ||||||||||||||
39,413 | SBA Communications Corporation, (3) | 4,254,239 | ||||||||||||||
Total Diversified Telecommunication Services | 10,800,000 | |||||||||||||||
Electric Utilities – 20.1% | ||||||||||||||||
37,952 | Alliant Energy Corporation | 1,506,694 | ||||||||||||||
16,000 | American Electric Power Company, Inc. | 1,121,440 | ||||||||||||||
2,557,212 | AusNet Services, (2) | 3,149,506 | ||||||||||||||
38,886 | Brookfield Infrastructure Partners LP | 1,759,980 | ||||||||||||||
341,200 | Cheung Kong Infrastructure Holdings Limited, (2) | 2,935,229 | ||||||||||||||
135,212 | Duke Energy Corporation | 11,599,837 | ||||||||||||||
55,949 | Edison International | 4,345,559 | ||||||||||||||
13,159 | Elia System Operator SA NV, (2) | 735,670 | ||||||||||||||
182,814 | Emera Incorporated | 6,879,846 | ||||||||||||||
246,003 | Enersis Chile SA | 1,434,197 | ||||||||||||||
160,431 | Enersis SA, Sponsored ADR | 1,376,498 | ||||||||||||||
107,585 | Eversource Energy | 6,444,342 | ||||||||||||||
71,368 | Hafslund ASA, Class B Shares | 579,898 |
26 | NUVEEN |
Shares | Description (1) | Value | ||||||||||||||
Electric Utilities (continued) | ||||||||||||||||
2,120,117 | Infratil Limited, (2) | $ | 4,839,772 | |||||||||||||
218,159 | NextEra Energy Inc. | 28,447,934 | ||||||||||||||
126,633 | PG&E Corporation | 8,094,381 | ||||||||||||||
20,906 | Pinnacle West Capital Corporation | 1,694,640 | ||||||||||||||
50,416 | PNM Resources Inc. | 1,786,743 | ||||||||||||||
220,428 | Power Assets Holdings Limited, (2) | 2,026,729 | ||||||||||||||
1,966,817 | Power Grid Corporation of India Limited, (2) | 4,759,156 | ||||||||||||||
176,112 | Southern Company | 9,444,887 | ||||||||||||||
3,754,336 | Spark Infrastructure Group, (2) | 6,879,026 | ||||||||||||||
1,276,198 | Terna-Rete Elettrica Nazionale SpA, (2) | 7,102,171 | ||||||||||||||
11,129 | Westar Energy Inc. | 624,226 | ||||||||||||||
208,013 | Xcel Energy, Inc. | 9,314,822 | ||||||||||||||
Total Electric Utilities | 128,883,183 | |||||||||||||||
Gas Utilities – 7.3% | ||||||||||||||||
403,025 | APA Group, (2) | 2,803,185 | ||||||||||||||
144,696 | Atmos Energy Corporation | 11,766,679 | ||||||||||||||
791,485 | China Resources Gas Group Limited, (2) | 2,417,258 | ||||||||||||||
50,667 | ENN Energy Holdings Limited, (2) | 251,611 | ||||||||||||||
365,285 | Hong Kong and China Gas Company Limited, (2) | 668,400 | ||||||||||||||
100,259 | Infraestructura Energitca Nova SAB de CV | 422,532 | ||||||||||||||
76,867 | New Jersey Resources Corporation | 2,963,223 | ||||||||||||||
49,107 | One Gas Inc. | 3,270,035 | ||||||||||||||
250,257 | Petronas Gas Berhad, (2) | 1,369,832 | ||||||||||||||
16,261 | Rubis, (2) | 1,243,075 | ||||||||||||||
2,342,691 | Snam Rete Gas S.p.A, (2) | 14,005,608 | ||||||||||||||
26,299 | South Jersey Industries Inc. | 831,574 | ||||||||||||||
14,000 | Spire, Inc. | 991,760 | ||||||||||||||
55,486 | WGL Holdings Inc. | 3,927,854 | ||||||||||||||
Total Gas Utilities | 46,932,626 | |||||||||||||||
Independent Power & Renewable Electricity Producers – 1.4% | ||||||||||||||||
3,555,296 | AES Generation SA | 1,741,242 | ||||||||||||||
488 | Brookfield Renewable Energy Partners LP | 14,538 | ||||||||||||||
108,108 | Brookfield Renewable Energy Partners LP | 3,218,262 | ||||||||||||||
114,654 | CPFL Energias Renovaveis SA, (3) | 392,614 | ||||||||||||||
41,295 | Endesa Americas SA, ADR | 568,219 | ||||||||||||||
41,970 | Endesa SA Chile, Sponsored ADR | 1,163,828 | ||||||||||||||
69,535 | NextEra Energy Partners LP | 2,112,473 | ||||||||||||||
Total Independent Power & Renewable Electricity Producers | 9,211,176 |
NUVEEN | 27 |
Nuveen Global Infrastructure Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Media – 0.4% | ||||||||||||||||
128,921 | SES SA, (2) | $ | 2,759,881 | |||||||||||||
Multi-Utilities – 9.8% | ||||||||||||||||
91,564 | CenterPoint Energy, Inc. | 2,197,536 | ||||||||||||||
74,301 | Centrica PLC, (2) | 224,685 | ||||||||||||||
58,032 | CMS Energy Corporation | 2,661,348 | ||||||||||||||
8,978 | Consolidated Edison, Inc. | 722,190 | ||||||||||||||
183,253 | Dominion Resources, Inc. | 14,280,906 | ||||||||||||||
9,607 | DTE Energy Company | 952,246 | ||||||||||||||
159,792 | Engie, (2) | 2,565,726 | ||||||||||||||
2,335,435 | Hera SpA, (2) | 6,374,276 | ||||||||||||||
160,368 | National Grid PLC, Sponsored ADR | 11,920,153 | ||||||||||||||
4,080 | NiSource Inc. | 108,202 | ||||||||||||||
457,102 | Redes Energeticas Nacionais SA, (2) | 1,285,387 | ||||||||||||||
44,075 | Sempra Energy | 5,025,432 | ||||||||||||||
397,285 | Suez Environnement Company, (2) | 6,196,657 | ||||||||||||||
31,956 | Unitil Corp. | 1,363,563 | ||||||||||||||
6,745 | Vector Limited, (2) | 15,887 | ||||||||||||||
49,320 | Veolia Environment S.A., ADR, (2) | 1,065,046 | ||||||||||||||
91,083 | WEC Energy Group, Inc. | 5,947,720 | ||||||||||||||
Total Multi-Utilities | 62,906,960 | |||||||||||||||
Oil, Gas & Consumable Fuels – 19.3% | ||||||||||||||||
44,142 | AltaGas Limited | 1,072,842 | ||||||||||||||
25,949 | Cheniere Energy Inc., (3) | 974,385 | ||||||||||||||
559,592 | Enbridge Inc. | 23,704,317 | ||||||||||||||
161 | Enbridge Income Fund Holdings Inc. | 3,995 | ||||||||||||||
502,395 | Enterprise Products Partnership LP | 14,700,078 | ||||||||||||||
223,957 | Keyera Corporation | 6,850,715 | ||||||||||||||
873,919 | Kinder Morgan, Inc. | 16,359,764 | ||||||||||||||
50,988 | Koninklijke Vopak NV, (2) | 2,538,156 | ||||||||||||||
140,427 | Magellan Midstream Partners LP | 10,672,452 | ||||||||||||||
75,958 | ONEOK, Inc. | 3,604,207 | ||||||||||||||
13,811 | Pembina Pipeline Corporation | 419,691 | ||||||||||||||
29,861 | Phillips 66 Partners LP | 1,668,334 | ||||||||||||||
152,431 | Shell Midstream Partners LP | 5,150,643 | ||||||||||||||
365,033 | Spectra Energy Corporation | 13,371,159 | ||||||||||||||
256,256 | TransCanada Corporation | 11,587,896 | ||||||||||||||
105,603 | TransCanada Corporation, Subscription Receipt | 4,767,032 | ||||||||||||||
137,961 | Veresen Inc. | 1,169,297 | ||||||||||||||
211,650 | Williams Companies, Inc. | 4,577,990 | ||||||||||||||
Total Oil, Gas & Consumable Fuels | 123,192,953 |
28 | NUVEEN |
Shares | Description (1) | Value | ||||||||||||||
Road & Rail – 1.9% | ||||||||||||||||
1,588,682 | ComfortDelGro Corporation, (2) | $ | 3,262,565 | |||||||||||||
88,755 | East Japan Railway Company, (2) | 8,225,221 | ||||||||||||||
138,937 | MTR Corporation, (2) | 706,659 | ||||||||||||||
Total Road & Rail | 12,194,445 | |||||||||||||||
Transportation Infrastructure – 23.8% | ||||||||||||||||
132,930 | Abertis Infraestructuras S.A, (2) | 1,964,391 | ||||||||||||||
46,891 | Aena S.A, (2), (3) | 6,215,422 | ||||||||||||||
81,127 | Aeroports de Paris, (2) | 8,889,124 | ||||||||||||||
845,494 | Atlantia SpA, (2) | 21,124,606 | ||||||||||||||
1,848,419 | Auckland International Airport Limited, (2) | 8,598,639 | ||||||||||||||
1,847,677 | China Merchants Holdings International Company Limited, (2) | 4,946,229 | ||||||||||||||
2,982,344 | Cosco Pacific Limited, (2) | 2,973,776 | ||||||||||||||
136,576 | Flughafen Wien AG, (2) | 3,686,915 | ||||||||||||||
45,008 | Flughafen Zuerich AG, (2) | 7,965,110 | ||||||||||||||
45,322 | Fraport AG, (2) | 2,426,578 | ||||||||||||||
272,242 | Groupe Eurotunnel SA, (2) | 2,875,608 | ||||||||||||||
105,115 | Grupo Aeroportuario Centro Norte, SA, ADR | 4,986,656 | ||||||||||||||
132 | Grupo Aeroportuario del Pacifico S.A.B. de CV, ADR | 13,547 | ||||||||||||||
860,021 | Hopewell Highway Infrastructure Limited, (2) | 430,083 | ||||||||||||||
5,091,860 | Hutchison Port Holdings Trust, (2) | 2,329,877 | ||||||||||||||
1,131,339 | International Container Terminal Services, Incorporated, (2) | 1,483,776 | ||||||||||||||
122,082 | Japan Airport Terminal Company, (2) | 4,429,286 | ||||||||||||||
651,244 | Kamigumi Company Limited, (2) | 6,019,325 | ||||||||||||||
1,756,429 | Macquarie Atlas Roads Group, (2) | 6,850,173 | ||||||||||||||
22,526 | Macquarie Infrastructure Corporation | 1,668,050 | ||||||||||||||
352,187 | Port of Tauranga Limited, (2) | 4,907,266 | ||||||||||||||
343,077 | Promotora y Operadora de Infraestructura SAB de CV (Pinfra) | 3,298,747 | ||||||||||||||
389,478 | Singapore Airport Terminal Services Limited, (2) | 1,190,787 | ||||||||||||||
98,663 | Societa Iniziative Autostradali e Servizi SpA, (2) | 851,567 | ||||||||||||||
1,884,727 | Sydney Airport, (2) | 9,841,371 | ||||||||||||||
3,538,673 | Transurban Group, (2) | 31,872,002 | ||||||||||||||
220,948 | Westports Holdings BHD, (2) | 230,633 | ||||||||||||||
Total Transportation Infrastructure | 152,069,544 | |||||||||||||||
Water Utilities – 1.8% | ||||||||||||||||
2,502,285 | Aguas Andinas SA. Class A | 1,436,628 | ||||||||||||||
19,416 | American Water Works Company | 1,640,846 | ||||||||||||||
2,306,627 | China Everbright Water Limited, (2) | 1,092,583 | ||||||||||||||
40,436 | Connecticut Water Service, Inc. | 2,272,503 | ||||||||||||||
103,392 | Severn Trent PLC, (2) | 3,373,597 |
NUVEEN | 29 |
Nuveen Global Infrastructure Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Water Utilities (continued) | ||||||||||||||||
124,769 | United Utilities PLC, (2) | $ | 1,729,338 | |||||||||||||
Total Water Utilities | 11,545,495 | |||||||||||||||
Wireless Telecommunication Services – 0.2% | ||||||||||||||||
2,620,399 | Tower Bersama Infrastructure Tbk PT, (2) | 1,313,565 | ||||||||||||||
Total Common Stocks (cost $515,041,931) | 604,866,210 | |||||||||||||||
Shares | Description (1) | Value | ||||||||||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 3.0% | ||||||||||||||||
Health Care – 0.5% | ||||||||||||||||
1,852,743 | Parkway Life Real Estate Investment Trust, (2) | $ | 3,333,302 | |||||||||||||
Specialized – 2.5% | ||||||||||||||||
47,664 | Crown Castle International Corporation | 4,834,560 | ||||||||||||||
75,422 | Digital Realty Trust Inc. | 8,220,244 | ||||||||||||||
6,528 | Equinix Inc. | 2,531,101 | ||||||||||||||
Total Specialized | 15,585,905 | |||||||||||||||
Total Real Estate Investment Trust Common Stocks (cost $14,783,838) | 18,919,207 | |||||||||||||||
Shares | Description (1), (5) | Value | ||||||||||||||
INVESTMENT COMPANIES – 1.0% | ||||||||||||||||
667,148 | 3I Infrastructure PLC | $ | 1,582,090 | |||||||||||||
608,578 | John Laing Infrastructure Fund | 1,037,016 | ||||||||||||||
11,066,050 | Keppel Infrastructure Trust | 4,075,543 | ||||||||||||||
Total Investment Companies (cost $6,707,200) | 6,694,649 | |||||||||||||||
Total Long-Term Investments (cost $536,532,969) | 630,480,066 | |||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||||||||||
REPURCHASE AGREEMENTS – 0.5% | ||||||||||||||||
$ | 3,086 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/16, repurchase price $3,086,288, collateralized by $2,890,000 U.S. Treasury Notes 2.500%, due 8/15/23, value $3,150,100 | 0.030% | 7/01/16 | $ | 3,086,285 | ||||||||||
Total Short-Term Investments (cost $3,086,285) | 3,086,285 | |||||||||||||||
Total Investments (cost $539,619,254) – 99.0% | 633,566,351 | |||||||||||||||
Other Assets Less Liabilities – 1.0% | 6,698,777 | |||||||||||||||
Net Assets – 100% | $ | 640,265,128 |
30 | NUVEEN |
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) | 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. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | Investment valued at fair value using methods 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) | 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. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
NUVEEN | 31 |
Nuveen Real Asset Income Fund
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
LONG-TERM INVESTMENTS – 95.0% | ||||||||||||||||||||
COMMON STOCKS – 25.9% | ||||||||||||||||||||
Air Freight & Logistics – 1.4% | ||||||||||||||||||||
445,545 | BPost SA, (2) | $ | 11,405,353 | |||||||||||||||||
66,472 | Oesterreichische Post AG, (2) | 2,146,602 | ||||||||||||||||||
Total Air Freight & Logistics | 13,551,955 | |||||||||||||||||||
Commercial Services & Supplies – 0.3% | ||||||||||||||||||||
169,483 | Covanta Holding Corporation | 2,787,995 | ||||||||||||||||||
Diversified Telecommunication Services – 0.8% | ||||||||||||||||||||
4,581,469 | HKBN Limited, (2) | 4,832,225 | ||||||||||||||||||
1,186,481 | Singapore Telecommunications Limited, (2) | 3,664,586 | ||||||||||||||||||
Total Diversified Telecommunication Services | 8,496,811 | |||||||||||||||||||
Electric Utilities – 6.6% | ||||||||||||||||||||
250,717 | Alupar Investimento SA | 1,083,321 | ||||||||||||||||||
4,001,597 | AusNet Services, (2) | 4,928,435 | ||||||||||||||||||
53,905 | Brookfield Infrastructure Partners LP | 2,439,740 | ||||||||||||||||||
1,570,917 | Contact Energy Limited, (2) | 5,832,019 | ||||||||||||||||||
1,255,642 | EDP – Energias de Portugal, S.A., (2) | 3,844,233 | ||||||||||||||||||
162,301 | Endesa S.A, (2), (3) | 3,256,646 | ||||||||||||||||||
4,718 | Hafslund ASA, Class B Shares | 38,336 | ||||||||||||||||||
3,910,327 | HK Electric Investments Limited, (2) | 3,643,747 | ||||||||||||||||||
3,270,032 | Infratil Limited, (2) | 7,464,781 | ||||||||||||||||||
225,006 | Scottish and Southern Energy PLC, (2) | 4,683,083 | ||||||||||||||||||
250,129 | Southern Company | 13,414,418 | ||||||||||||||||||
6,846,234 | Spark Infrastructure Group, (2) | 12,544,274 | ||||||||||||||||||
489,680 | Transmissora Alianca de Energia Eletrica SA | 2,951,220 | ||||||||||||||||||
Total Electric Utilities | 66,124,253 | |||||||||||||||||||
Gas Utilities – 2.0% | ||||||||||||||||||||
23,403 | AmeriGas Partners, LP | 1,092,920 | ||||||||||||||||||
60,006 | Enagas, (2) | 1,833,198 | ||||||||||||||||||
2,825,278 | Snam Rete Gas S.p.A, (2) | 16,890,720 | ||||||||||||||||||
Total Gas Utilities | 19,816,838 | |||||||||||||||||||
Health Care Providers & Services – 0.3% | ||||||||||||||||||||
233,928 | Sienna Senior Living Inc., Subscription | 3,094,415 | ||||||||||||||||||
Independent Power & Renewable Electricity Producers – 1.5% | ||||||||||||||||||||
33,832 | Brookfield Renewable Energy Partners LP | 1,007,855 | ||||||||||||||||||
196,152 | Brookfield Renewable Energy Partners LP | 5,839,240 |
32 | NUVEEN |
Shares | Description (1) | Value | ||||||||||||||||||
Independent Power & Renewable Electricity Producers (continued) | ||||||||||||||||||||
64,799 | NextEra Energy Partners LP | $ | 1,968,594 | |||||||||||||||||
13,502 | Pattern Energy Group Inc. | 310,141 | ||||||||||||||||||
1,328,087 | Renewables Infrastructure Group Limited | 1,719,395 | ||||||||||||||||||
368,530 | Saeta Yield S.A, (2), (3) | 3,705,566 | ||||||||||||||||||
57,886 | TransAlta Renewables Inc. | 598,597 | ||||||||||||||||||
Total Independent Power & Renewable Electricity Producers | 15,149,388 | |||||||||||||||||||
Media – 0.2% | ||||||||||||||||||||
97,947 | SES SA, (2) | 2,096,804 | ||||||||||||||||||
Multi-Utilities – 4.9% | ||||||||||||||||||||
150,832 | CenterPoint Energy, Inc. | 3,619,968 | ||||||||||||||||||
1,067,997 | Centrica PLC, (2) | 3,229,611 | ||||||||||||||||||
4,180,796 | Duet Group, (2) | 7,841,522 | ||||||||||||||||||
402,332 | Engie, (2) | 6,460,107 | ||||||||||||||||||
214,066 | National Grid PLC, Sponsored ADR | 15,911,526 | ||||||||||||||||||
1,727,297 | Redes Energeticas Nacionais SA, (2) | 4,857,222 | ||||||||||||||||||
3,194,640 | Vector Limited, (2) | 7,524,806 | ||||||||||||||||||
Total Multi-Utilities | 49,444,762 | |||||||||||||||||||
Oil, Gas & Consumable Fuels – 3.2% | ||||||||||||||||||||
47,159 | AltaGas Limited | 1,146,169 | ||||||||||||||||||
178,634 | Enbridge Energy Partners LP | 4,144,309 | ||||||||||||||||||
130,675 | Enbridge Income Fund Holdings Inc. | 3,242,727 | ||||||||||||||||||
569,574 | Enterprise Products Partnership LP | 16,665,735 | ||||||||||||||||||
102,319 | Spectra Energy Corporation | 3,747,945 | ||||||||||||||||||
314,058 | Veresen Inc. | 2,661,817 | ||||||||||||||||||
Total Oil, Gas & Consumable Fuels | 31,608,702 | |||||||||||||||||||
Road & Rail – 0.1% | ||||||||||||||||||||
108,241 | MTR Corporation, (2) | 550,534 | ||||||||||||||||||
Transportation Infrastructure – 4.4% | ||||||||||||||||||||
51,327 | Abertis Infraestructuras S.A, (2) | 758,489 | ||||||||||||||||||
297,278 | Cosco Pacific Limited, (2) | 296,424 | ||||||||||||||||||
14,376,730 | Hopewell Highway Infrastructure Limited, (2) | 7,189,577 | ||||||||||||||||||
11,118,510 | Hutchison Port Holdings Trust, (2) | 5,087,485 | ||||||||||||||||||
298,679 | Jiangsu Expressway Company Limited, (2) | 417,101 | ||||||||||||||||||
85,709 | Macquarie Infrastructure Corporation | 6,346,751 | ||||||||||||||||||
1,555,510 | Sydney Airport, (2) | 8,122,318 | ||||||||||||||||||
1,668,616 | Transurban Group, (2) | 15,028,835 | ||||||||||||||||||
900,042 | Zhejiang Expressway Company Limited, (2) | 849,130 | ||||||||||||||||||
Total Transportation Infrastructure | 44,096,110 |
NUVEEN | 33 |
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
Water Utilities – 0.2% | ||||||||||||||||||||
1,437,770 | Inversiones Aguas Metropolitanas SA | $ | 2,289,571 | |||||||||||||||||
Total Common Stocks (cost $241,501,981) | 259,108,138 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 18.1% | ||||||||||||||||||||
Diversified – 3.4% | ||||||||||||||||||||
949,952 | AEW UK REIT PLC | $ | 1,220,361 | |||||||||||||||||
462,222 | Armada Hoffler Properties Inc. | 6,350,930 | ||||||||||||||||||
6,745 | Cofinimmo, SANV, (2) | 792,927 | ||||||||||||||||||
19,985 | ICADE, (2) | 1,404,353 | ||||||||||||||||||
111,374 | Investors Real Estate Trust | 720,590 | ||||||||||||||||||
41,863 | Lexington Corporate Properties Trust | 423,235 | ||||||||||||||||||
228,201 | Liberty Property Trust | 9,064,144 | ||||||||||||||||||
5,737,108 | Mapletree Greater China Commercial Trust, (2) | 4,315,965 | ||||||||||||||||||
382,282 | Spirit Realty Capital Inc. | 4,881,741 | ||||||||||||||||||
442,297 | VEREIT, Inc. | 4,484,892 | ||||||||||||||||||
Total Diversified | 33,659,138 | |||||||||||||||||||
Health Care – 3.8% | ||||||||||||||||||||
2,198 | Care Capital Properties, Inc. | 57,610 | ||||||||||||||||||
134,354 | CareTrust REIT Inc. | 1,851,398 | ||||||||||||||||||
204,603 | Community Healthcare Trust Inc. | 4,325,307 | ||||||||||||||||||
52,786 | Health Care Property Investors Inc. | 1,867,569 | ||||||||||||||||||
78,630 | LTC Properties Inc. | 4,067,530 | ||||||||||||||||||
174,124 | Medical Properties Trust Inc. | 2,648,426 | ||||||||||||||||||
82,078 | New Senior Investment Group Inc. | 876,593 | ||||||||||||||||||
507,500 | NorthWest Healthcare Properties REIT | 3,939,955 | ||||||||||||||||||
105,073 | Omega Healthcare Investors Inc. | 3,567,228 | ||||||||||||||||||
1,428,055 | Parkway Life Real Estate Investment Trust, (2) | 2,569,239 | ||||||||||||||||||
345,876 | Physicians Realty Trust | 7,266,855 | ||||||||||||||||||
138,288 | Sabra Health Care Real Estate Investment Trust Inc. | 2,853,573 | ||||||||||||||||||
40,572 | Universal Health Realty Income Trust | 2,319,907 | ||||||||||||||||||
Total Health Care | 38,211,190 | |||||||||||||||||||
Hotels – 0.6% | ||||||||||||||||||||
396 | Chesapeake Lodging Trust | 9,207 | ||||||||||||||||||
20,327 | DiamondRock Hospitality Company | 183,553 | ||||||||||||||||||
314,044 | InnVest Real Estate Investment Trust | 1,694,250 | ||||||||||||||||||
15,214 | LaSalle Hotel Properties | 358,746 | ||||||||||||||||||
121,412 | MGM Growth Properties LLC | 3,239,272 | ||||||||||||||||||
4,202 | Pebblebrook Hotel Trust | 110,303 | ||||||||||||||||||
Total Hotels | 5,595,331 |
34 | NUVEEN |
Shares | Description (1) | Value | ||||||||||||||||||
Industrial – 2.4% | ||||||||||||||||||||
1,347,666 | Ascendas Real Estate Investment Trust, (2) | $ | 2,494,154 | |||||||||||||||||
11,431,940 | Frasers Logistics & Industrial Trust, (3) | 8,062,017 | ||||||||||||||||||
944,832 | Mapletree Logistics Trust, (2) | 703,452 | ||||||||||||||||||
7,382 | Monmouth Real Estate Investment Corporation | 97,885 | ||||||||||||||||||
1,430,527 | Prologis Property Mexico SA de CV | 2,327,803 | ||||||||||||||||||
1,150,976 | Pure Industrial Real Estate Trust | 4,588,046 | ||||||||||||||||||
19,449 | STAG Industrial Inc. | 463,081 | ||||||||||||||||||
2,095,821 | TF Administradora Industrial S de RL de CV | 3,566,296 | ||||||||||||||||||
149,867 | WPT Industrial Real Estate Investment Trust | 1,651,534 | ||||||||||||||||||
Total Industrial | 23,954,268 | |||||||||||||||||||
Mortgage – 1.3% | ||||||||||||||||||||
203,796 | Blackstone Mortgage Trust Inc, Class A | 5,639,035 | ||||||||||||||||||
131,608 | Colony Financial Inc. | 2,020,183 | ||||||||||||||||||
268,085 | Starwood Property Trust Inc. | 5,554,722 | ||||||||||||||||||
Total Mortgage | 13,213,940 | |||||||||||||||||||
Office – 0.8% | ||||||||||||||||||||
381,364 | City Office REIT, Inc. | 4,950,105 | ||||||||||||||||||
184,062 | Easterly Government Properties, Inc. | 3,631,543 | ||||||||||||||||||
Total Office | 8,581,648 | |||||||||||||||||||
Residential – 1.0% | ||||||||||||||||||||
31,353 | Camden Property Trust | 2,772,232 | ||||||||||||||||||
152,358 | Independence Realty Trust | 1,246,288 | ||||||||||||||||||
637,596 | Killam Apartment Real Estate I | 6,262,698 | ||||||||||||||||||
Total Retail | 10,281,218 | |||||||||||||||||||
Retail – 4.0% | ||||||||||||||||||||
20,557 | Agree Realty Corporation | 991,670 | ||||||||||||||||||
149,658 | CapitaMall Trust, (2) | 237,960 | ||||||||||||||||||
167,289 | Choice Properties Real Estate Investment Trust | 1,838,696 | ||||||||||||||||||
685,856 | Crombie Real Estate Investment Trust | 8,148,837 | ||||||||||||||||||
77,801 | Eurocommercial Properties NV, (2) | 3,313,292 | ||||||||||||||||||
1,164,164 | Fortune REIT, (2) | 1,392,630 | ||||||||||||||||||
4,551,674 | Frasers Centrepoint Trust, (2) | 7,206,488 | ||||||||||||||||||
361,906 | Immobiliare Grande Distribuzione SIIQ SpA, (2) | 296,295 | ||||||||||||||||||
241,810 | OneREIT | 731,822 | ||||||||||||||||||
1,376,247 | Plaza Retail REIT | 5,177,105 | ||||||||||||||||||
131,374 | Smart Real Estate Investment Trust | 3,884,428 | ||||||||||||||||||
51,469 | Urstadt Biddle Properties Inc. | 1,275,402 | ||||||||||||||||||
374,565 | Vicinity Centres, (2) | 934,483 | ||||||||||||||||||
101,808 | Wereldhave NV, (2) | 4,599,319 | ||||||||||||||||||
Total Retail | 40,028,427 |
NUVEEN | 35 |
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
Specialized – 0.8% | ||||||||||||||||||||
22,945 | Four Corners Property Trust, Inc. | $ | 472,438 | |||||||||||||||||
164,941 | Gaming and Leisure Properties Inc. | 5,687,166 | ||||||||||||||||||
2,293,972 | Keppel DC REIT, (2) | 1,893,912 | ||||||||||||||||||
Total Specialized | 8,053,516 | |||||||||||||||||||
Total Real Estate Investment Trust Common Stocks (cost $162,361,263) | 181,578,676 | |||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (4) | Value | ||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 6.7% | ||||||||||||||||||||
Electric Utilities – 1.9% | ||||||||||||||||||||
137,297 | Exelon Corporation | 6.500% | BB+ | $ | 6,774,234 | |||||||||||||||
181,348 | NextEra Energy Inc. | 6.371% | BBB | 11,747,723 | ||||||||||||||||
15,412 | NextEra Energy Inc. | 5.799% | BBB | 1,028,135 | ||||||||||||||||
Total Electric Utilities | 19,550,092 | |||||||||||||||||||
Multi-Utilities – 0.9% | ||||||||||||||||||||
18,259 | Black Hills Corp | 7.750% | N/R | 1,280,321 | ||||||||||||||||
100,803 | Dominion Resources Inc. | 6.375% | Baa3 | 5,225,628 | ||||||||||||||||
80,755 | DTE Energy Company | 5.250% | Baa1 | 2,085,094 | ||||||||||||||||
Total Multi-Utilities | 8,591,043 | |||||||||||||||||||
Gas Utilities – 0.4% | ||||||||||||||||||||
60,937 | Spire, Inc., (2) | 6.750% | N/R | 3,793,328 | ||||||||||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||||||||||||||
44,898 | Anadarko Petroleum Corporation | 7.500% | N/R | 1,645,961 | ||||||||||||||||
54,614 | Kinder Morgan Inc, Delaware | 9.750% | N/R | 2,667,894 | ||||||||||||||||
Total Oil, Gas & Consumable Fuels | 4,313,855 | |||||||||||||||||||
Real Estate Investment Trust – 3.1% | ||||||||||||||||||||
150,057 | Alexandria Real Estate Equities Inc., (2) | 7.000% | Baa3 | 5,113,657 | ||||||||||||||||
100,525 | American Tower Corporation | 5.500% | N/R | 11,290,968 | ||||||||||||||||
128,152 | EPR Properties Inc. | 9.000% | BB | 4,795,448 | ||||||||||||||||
51,521 | EPR Properties Inc. | 5.750% | BB | 1,570,360 | ||||||||||||||||
34,801 | Equity Commonwealth | 6.500% | Ba1 | 916,310 | ||||||||||||||||
2,646 | FelCor Lodging Trust Inc., Series A. | 1.950% | CCC | 66,653 | ||||||||||||||||
13,213 | Lexington Corporate Properties Trust, Series B | 6.500% | N/R | 665,803 | ||||||||||||||||
62,856 | Ramco-Gershenson Properties Trust | 7.250% | N/R | 4,432,605 | ||||||||||||||||
101,911 | Summit Hotel Properties Inc. | 6.450% | N/R | 2,573,253 | ||||||||||||||||
Total Real Estate Investment Trust | 31,425,057 | |||||||||||||||||||
Total Convertible Preferred Securities (cost $59,916,235) | 67,673,375 |
36 | NUVEEN |
Shares | Description (1) | Coupon | Ratings (4) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 21.2% | ||||||||||||||||||||
Electric Utilities – 4.6% | ||||||||||||||||||||
24,320 | APT Pipelines Limited | 6.455% | N/R | $ | 1,843,713 | |||||||||||||||
153,508 | Entergy Arkansas Inc., (2) | 6.450% | Baa3 | 3,861,693 | ||||||||||||||||
138,676 | Entergy New Orleans, Inc. | 5.500% | A– | 3,723,451 | ||||||||||||||||
77,675 | Entergy Texas Inc. | 5.625% | A– | 2,085,574 | ||||||||||||||||
21 | Gulf Power Company, (2) | 5.600% | Baa1 | 2,174 | ||||||||||||||||
169,322 | Integrys Energy Group Inc., (2) | 6.000% | Baa1 | 4,571,694 | ||||||||||||||||
227,676 | NextEra Energy Inc. | 5.250% | BBB | 5,848,996 | ||||||||||||||||
137,887 | NextEra Energy Inc. | 5.000% | BBB | 3,611,261 | ||||||||||||||||
150,764 | Pacific Gas & Electric Corporation | 6.000% | BBB+ | 4,869,677 | ||||||||||||||||
324,735 | PPL Capital Funding, Inc. | 5.900% | BBB | 8,735,372 | ||||||||||||||||
106,598 | SCE Trust I | 5.625% | Baa1 | 2,828,045 | ||||||||||||||||
135,158 | SCE Trust V | 5.450% | Baa1 | 3,858,761 | ||||||||||||||||
Total Electric Utilities | 45,840,411 | |||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||
89,881 | Brookfield Renewable Partners, Preferred Equity | 5.750% | BB+ | 1,755,948 | ||||||||||||||||
Multi-Utilities – 0.5% | ||||||||||||||||||||
212,166 | DTE Energy Company | 5.375% | Baa1 | 5,520,559 | ||||||||||||||||
Oil, Gas & Consumable Fuels – 0.5% | ||||||||||||||||||||
65,715 | Nustar Logistics Limited Partnership | 7.625% | Ba2 | 1,633,018 | ||||||||||||||||
150,851 | Pembina Pipeline Corporation | 5.750% | BB+ | 3,019,472 | ||||||||||||||||
Total Oil, Gas & Consumable Fuels | 4,652,490 | |||||||||||||||||||
Real Estate Investment Trust – 15.2% | ||||||||||||||||||||
99,853 | American Homes 4 Rent | 5.000% | N/R | 2,681,053 | ||||||||||||||||
87,947 | American Homes 4 Rent | 6.350% | N/R | 2,206,590 | ||||||||||||||||
11,892 | American Homes 4 Rent | 5.500% | N/R | 315,495 | ||||||||||||||||
82,439 | American Homes 4 Rent | 5.000% | N/R | 2,206,068 | ||||||||||||||||
224,257 | American Homes 4 Rent | 6.500% | N/R | 5,891,231 | ||||||||||||||||
44,180 | Apartment Investment & Management Company | 6.875% | BB | 1,192,860 | ||||||||||||||||
59,457 | Apollo Commercial Real Estate Finance | 8.625% | N/R | 1,507,235 | ||||||||||||||||
110,660 | Arbor Realty Trust Incorporated | 7.375% | N/R | 2,816,297 | ||||||||||||||||
233,457 | CBL & Associates Properties Inc. | 6.625% | BB | 5,764,053 | ||||||||||||||||
421,167 | Cedar Shopping Centers Inc., Series A | 7.250% | N/R | 10,933,495 | ||||||||||||||||
110,016 | Chesapeake Lodging Trust | 7.750% | N/R | 2,901,122 | ||||||||||||||||
190,199 | Colony Financial Inc. | 7.125% | N/R | 4,448,755 | ||||||||||||||||
71,408 | Colony Financial Inc. | 8.500% | N/R | 1,820,904 | ||||||||||||||||
56,365 | Colony Financial Inc. | 7.500% | N/R | 1,387,143 | ||||||||||||||||
75,824 | Coresite Realty Corporation | 7.250% | N/R | 2,005,545 | ||||||||||||||||
109,047 | Corporate Office Properties Trust | 7.375% | BB | 2,833,041 |
NUVEEN | 37 |
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Coupon | Ratings (4) | Value | ||||||||||||||||
Real Estate Investment Trust (continued) | ||||||||||||||||||||
241,191 | Digital Realty Trust Inc. | 6.350% | Baa3 | $ | 6,403,621 | |||||||||||||||
82,875 | Dupont Fabros Technology | 6.625% | Ba2 | 2,262,488 | ||||||||||||||||
44,534 | EPR Properties Inc. | 6.625% | Baa3 | 1,176,143 | ||||||||||||||||
1,393 | Equity Lifestyle Properties Inc. | 6.750% | N/R | 36,873 | ||||||||||||||||
113,970 | General Growth Properties | 6.375% | N/R | 3,050,977 | ||||||||||||||||
191,740 | Gramercy Property Trust | 7.125% | N/R | 5,025,505 | ||||||||||||||||
172,905 | Hersha Hospitality Trust | 6.875% | N/R | 4,495,530 | ||||||||||||||||
212,490 | Hersha Hospitality Trust | 6.500% | N/R | 5,373,872 | ||||||||||||||||
168,276 | Investors Real Estate Trust | 7.950% | N/R | 4,408,831 | ||||||||||||||||
10,807 | LaSalle Hotel Properties | 6.375% | N/R | 275,146 | ||||||||||||||||
212,288 | LaSalle Hotel Properties | 6.300% | N/R | 5,489,768 | ||||||||||||||||
35,150 | Northstar Realty Finance Corporation | 8.750% | N/R | 879,102 | ||||||||||||||||
290,188 | Pebblebrook Hotel Trust | 6.500% | N/R | 7,434,617 | ||||||||||||||||
163,085 | Pebblebrook Hotel Trust | 6.375% | N/R | 4,385,356 | ||||||||||||||||
10,548 | Post Properties, Inc., Series A | 8.500% | Baa3 | 706,716 | ||||||||||||||||
50,406 | Rait Financial Trust | 7.125% | N/R | 1,234,947 | ||||||||||||||||
87,435 | Saul Centers, Inc. | 6.875% | N/R | 2,334,515 | ||||||||||||||||
7,821 | STAG Industrial Inc. | 9.000% | BB+ | 203,111 | ||||||||||||||||
127,761 | STAG Industrial Inc. | 6.875% | BB+ | 3,309,010 | ||||||||||||||||
184,609 | Summit Hotel Properties Inc. | 7.875% | N/R | 4,849,678 | ||||||||||||||||
278,674 | Summit Hotel Properties Inc. | 7.125% | N/R | 7,223,230 | ||||||||||||||||
236,833 | Sunstone Hotel Investors Inc. | 6.450% | N/R | 6,152,921 | ||||||||||||||||
158,017 | Taubman Centers Incorporated, Series J | 6.500% | N/R | 4,110,022 | ||||||||||||||||
52,845 | Taubman Centers Incorporated, Series K | 6.250% | N/R | 1,376,612 | ||||||||||||||||
116,852 | UMH Properties Inc. | 8.000% | N/R | 3,122,285 | ||||||||||||||||
124,194 | Urstadt Biddle Properties | 7.125% | N/R | 3,293,625 | ||||||||||||||||
245,723 | Urstadt Biddle Properties | 6.750% | N/R | 6,683,666 | ||||||||||||||||
13,746 | VEREIT, Inc. | 6.700% | N/R | 356,020 | ||||||||||||||||
84,385 | WP GLIMCHER, Inc. | 7.500% | Ba1 | 2,163,630 | ||||||||||||||||
138,243 | WP GLIMCHER, Inc. | 6.875% | Ba1 | 3,583,259 | ||||||||||||||||
Total Real Estate Investment Trust | 152,311,963 | |||||||||||||||||||
Trading Companies & Distributors – 0.2% | ||||||||||||||||||||
79,000 | GATX Corporation | 5.625% | BBB | 1,986,060 | ||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $204,369,958) | 212,067,431 | |||||||||||||||||||
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
CORPORATE BONDS – 13.5% | ||||||||||||||||||||
Commercial Services & Supplies – 1.4% | ||||||||||||||||||||
$ | 3,775 | ADS Waste Holdings Inc. | 8.250% | 10/01/20 | CCC+ | $ | 3,831,625 |
38 | NUVEEN |
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Commercial Services & Supplies (continued) | ||||||||||||||||||||
$ | 2,071 | Casella Waste Systems Inc. | 7.750% | 2/15/19 | B | $ | 2,113,714 | |||||||||||||
4,685 | Covanta Holding Corporation | 5.875% | 3/01/24 | Ba3 | 4,544,450 | |||||||||||||||
3,495 | GFL Environmental Corporation, 144A | 9.875% | 2/01/21 | B | 3,722,175 | |||||||||||||||
Total Commercial Services & Supplies | 14,211,964 | |||||||||||||||||||
Construction & Engineering – 0.2% | ||||||||||||||||||||
16,000 | NOK | VV Holding AS, 144A | 6.230% | 7/10/19 | N/R | 1,845,915 | ||||||||||||||
Consumer Finance – 0.4% | ||||||||||||||||||||
745 | Covenant Surgical Partners Inc., 144A | 8.750% | 8/01/19 | B– | 715,200 | |||||||||||||||
3,220 | CyrusOne LP Finance | 6.375% | 11/15/22 | B+ | 3,348,800 | |||||||||||||||
Total Consumer Finance | 4,064,000 | |||||||||||||||||||
Diversified Telecommunication Services – 0.9% | ||||||||||||||||||||
4,378 | Qualitytech LP/QTS Finance Corp. | 5.875% | 8/01/22 | BB– | 4,443,670 | |||||||||||||||
4,300 | SBA Communications Corporation | 4.875% | 7/15/22 | B | 4,267,750 | |||||||||||||||
Total Diversified Telecommunication Services | 8,711,420 | |||||||||||||||||||
Electric Utilities – 0.1% | ||||||||||||||||||||
1,975 | Intergen NV, 144A | 7.000% | 6/30/23 | B+ | 1,397,312 | |||||||||||||||
Energy Equipment & Services – 0.1% | ||||||||||||||||||||
1,305 | Compressco Partners LP / Compressco Finance Corporation | 7.250% | 8/15/22 | B– | 1,070,100 | |||||||||||||||
Gas Utilities – 1.0% | ||||||||||||||||||||
2,165 | AmeriGas Finance LLC | 7.000% | 5/20/22 | Ba2 | 2,285,417 | |||||||||||||||
3,235 | Ferrellgas LP | 6.750% | 1/15/22 | B+ | 2,943,850 | |||||||||||||||
2,235 | LBC Tank Terminals Holdings Netherlands BV, 144A | 6.875% | 5/15/23 | B | 2,156,775 | |||||||||||||||
2,584 | Suburban Propane Partners LP | 5.750% | 3/01/25 | BB– | 2,538,780 | |||||||||||||||
Total Gas Utilities | 9,924,822 | |||||||||||||||||||
Health Care Equipment & Supplies – 0.2% | ||||||||||||||||||||
1,960 | Tenet Healthcare Corporation | 8.125% | 4/01/22 | B– | 2,008,608 | |||||||||||||||
Health Care Providers & Services – 1.2% | ||||||||||||||||||||
1,290 | Acadia Healthcare | 5.625% | 2/15/23 | B | 1,264,200 | |||||||||||||||
2,270 | Community Health Systems, Inc. | 6.875% | 2/01/22 | B+ | 1,986,250 | |||||||||||||||
2,390 | IASIS Healthcare Capital Corporation | 8.375% | 5/15/19 | CCC+ | 2,295,894 | |||||||||||||||
3,060 | Kindred Healthcare Inc. | 6.375% | 4/15/22 | B– | 2,731,050 | |||||||||||||||
1,480 | Lifepoint Health Inc. | 5.875% | 12/01/23 | Ba2 | 1,539,200 | |||||||||||||||
2,105 | Select Medical Corporation | 6.375% | 6/01/21 | B– | 2,020,800 | |||||||||||||||
Total Health Care Providers & Services | 11,837,394 | |||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||
2,935 | GenOn Energy Inc. | 9.500% | 10/15/18 | CCC+ | 2,333,325 |
NUVEEN | 39 |
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Internet Software & Services – 0.3% | ||||||||||||||||||||
$ | 3,250 | Equinix Inc. | 5.750% | 1/01/25 | BB | $ | 3,363,750 | |||||||||||||
IT Services – 0.4% | ||||||||||||||||||||
3,655 | Zayo Group LLC / Zayo Capital Inc. | 6.000% | 4/01/23 | B– | 3,728,100 | |||||||||||||||
Marine – 0.1% | ||||||||||||||||||||
2,085 | Navios South American Logisitics Inc., Finance US Inc., 144A | 7.250% | 5/01/22 | B– | 1,469,925 | |||||||||||||||
Media – 0.1% | ||||||||||||||||||||
1,180 | Lamar Media Corporation | 5.750% | 11/26/18 | Ba1 | 1,227,943 | |||||||||||||||
Multi-Utilities – 0.8% | ||||||||||||||||||||
3,805 | Dominion Resources Inc. | 5.750% | 10/01/54 | BBB– | 3,785,975 | |||||||||||||||
3,200 | GBP | RWE AG, Reg S | 7.000% | 3/29/49 | BB+ | 4,167,761 | ||||||||||||||
Total Multi-Utilities | 7,953,736 | |||||||||||||||||||
Oil, Gas & Consumable Fuels – 2.5% | ||||||||||||||||||||
25 | Calumet Specialty Products | 6.500% | 4/15/21 | CCC+ | 17,875 | |||||||||||||||
3,259 | Calumet Specialty Products | 7.625% | 1/15/22 | CCC+ | 2,305,743 | |||||||||||||||
1,204 | Crestwood Midstream Partners LP | 6.125% | 3/01/22 | BB– | 1,105,730 | |||||||||||||||
3,585 | DCP Midstream LLC, 144A | 5.850% | 5/21/43 | BB– | 2,581,200 | |||||||||||||||
2,385 | Energy Transfer Equity LP | 5.500% | 6/01/27 | BB+ | 2,241,900 | |||||||||||||||
1,800 | Gibson Energy, 144A | 6.750% | 7/15/21 | BB | 1,791,000 | |||||||||||||||
1,515 | Global Partners LP/GLP Finance | 6.250% | 7/15/22 | B+ | 1,261,238 | |||||||||||||||
150 | Global Partners LP/GLP Finance | 7.000% | 6/15/23 | B+ | 125,250 | |||||||||||||||
2,492 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 2,305,100 | |||||||||||||||
2,576 | NGL Energy Partners LP/Fin Co | 5.125% | 7/15/19 | BB– | 2,344,160 | |||||||||||||||
1,088 | NGL Energy Partners LP/Fin Co | 6.875% | 10/15/21 | BB– | 954,720 | |||||||||||||||
1,971 | Northern Tier Energy LLC | 7.125% | 11/15/20 | BB– | 2,005,493 | |||||||||||||||
2,222 | Rose Rock Midstream LP / Rose Rock Finance Corporation | 5.625% | 7/15/22 | B | 1,955,360 | |||||||||||||||
2,024 | Sabine Pass Liquefaction LLC | 6.250% | 3/15/22 | BB+ | 2,074,600 | |||||||||||||||
1,680 | Summit Midstream Holdings LLC Finance | 5.500% | 8/15/22 | B | 1,444,800 | |||||||||||||||
Total Oil, Gas & Consumable Fuels | 24,514,169 | |||||||||||||||||||
Real Estate Investment Trust – 1.8% | ||||||||||||||||||||
2,974 | Corporate Office Properties LP | 5.000% | 7/01/25 | BBB– | 3,136,603 | |||||||||||||||
3,785 | DuPont Fabros Technology LP | 5.625% | 6/15/23 | Ba1 | 3,917,475 | |||||||||||||||
595 | EPR Properties Inc. | 4.500% | 4/01/25 | Baa2 | 590,335 | |||||||||||||||
2,535 | Geo Group Inc. | 6.000% | 4/15/26 | Ba3 | 2,560,350 | |||||||||||||||
2,115 | Omega Healthcare Investors Inc. | 4.500% | 4/01/27 | BBB– | 2,107,705 | |||||||||||||||
3,230 | PLA Administradora Industrial, S. de R.L. de C.V., 144A | 5.250% | 11/10/22 | Baa3 | 3,274,412 | |||||||||||||||
2,035 | Trust F/1401, 144A | 5.250% | 1/30/26 | Baa2 | 2,070,612 | |||||||||||||||
Total Real Estate Investment Trust | 17,657,492 |
40 | NUVEEN |
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Real Estate Management & Development – 0.6% | ||||||||||||||||||||
$ | 2,505 | Hunt Companies Inc., 144A | 9.625% | 3/01/21 | N/R | $ | 2,517,525 | |||||||||||||
3,700 | Kennedy-Wilson Holdings Incorporated | 5.875% | 4/01/24 | BB– | 3,607,500 | |||||||||||||||
Total Real Estate Management & Development | 6,125,025 | |||||||||||||||||||
Road & Rail – 0.3% | ||||||||||||||||||||
2,545 | Watco Companies LLC Finance, 144A | 6.375% | 4/01/23 | B | 2,519,550 | |||||||||||||||
Software – 0.3% | ||||||||||||||||||||
3,170 | SixSigma Networks Mexico SA de CV, 144A | 8.250% | 11/07/21 | B+ | 3,166,038 | |||||||||||||||
Transportation Infrastructure – 0.2% | ||||||||||||||||||||
2,224 | Aeropuerto Internacional de Tocumen SA | 5.750% | 10/09/23 | BBB | 2,324,080 | |||||||||||||||
Wireless Telecommunication Services – 0.4% | ||||||||||||||||||||
3,835 | Inmarsat Finance PLC, 144A | 4.875% | 5/15/22 | BB+ | 3,499,438 | |||||||||||||||
Total Corporate Bonds (cost $140,719,857) | 134,954,106 | |||||||||||||||||||
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 7.8% |
| |||||||||||||||||||
Electric Utilities – 4.8% | ||||||||||||||||||||
$ | 6,025 | AES Gener SA, 144A | 8.375% | 12/18/73 | BB | $ | 6,371,438 | |||||||||||||
2,584 | ComEd Financing III | 6.350% | 3/15/33 | Baa2 | 2,800,361 | |||||||||||||||
16,655 | Emera, Inc. | 8.750% | 6/15/76 | BBB– | 16,888,170 | |||||||||||||||
4,900 | Enel SpA, 144A | 8.750% | 9/24/73 | BBB– | 5,579,875 | |||||||||||||||
4,400 | EUR | Energias de Portugal, SA, Reg S | 5.375% | 9/16/75 | Ba2 | 4,842,762 | ||||||||||||||
2,273 | FPL Group Capital Inc. | 6.350% | 10/01/66 | BBB | 1,807,035 | |||||||||||||||
6,950 | GBP | NGG Finance PLC, Reg S | 5.625% | 6/18/73 | BBB | 9,691,663 | ||||||||||||||
Total Electric Utilities | 47,981,304 | |||||||||||||||||||
Energy Equipment & Services – 1.5% | ||||||||||||||||||||
3,740 | EUR | Origin Energy Finance Limited, Reg S | 7.875% | 6/16/71 | BB | 4,066,417 | ||||||||||||||
11,470 | Transcanada Trust | 5.625% | 5/20/75 | BBB | 10,581,075 | |||||||||||||||
Total Energy Equipment & Service | 14,647,492 | |||||||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||
2,750 | National Rural Utilities Cooperative Finance Corporation | 5.250% | 4/20/75 | A3 | 2,815,313 | |||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
3,645 | GBP | Centrica PLC, Reg S | 5.250% | 4/10/75 | BBB | 4,573,391 | ||||||||||||||
Oil, Gas & Consumable Fuels – 0.7% | ||||||||||||||||||||
6,300 | Enterprise Products Operating LP | 7.034% | 1/15/68 | Baa2 | 6,640,162 | |||||||||||||||
Real Estate Investment Trust – 0.1% | ||||||||||||||||||||
785 | Vereit Operating Partner | 4.600% | 2/06/24 | BB+ | 790,888 |
NUVEEN | 41 |
Nuveen Real Asset Income Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Principal Amount (000) (5) | Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
Transportation Infrastructure – 0.0% | ||||||||||||||||||||
300 | EUR | Eurogate GmbH | 6.750% | N/A (6) | N/R | $ | 344,100 | |||||||||||||
Total $1,000 Par (or similar) Institutional Preferred (cost $79,246,890) | 77,792,650 | |||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||
COMMON STOCK RIGHTS – 0.0% | ||||||||||||||||||||
Utilities – 0.0% | ||||||||||||||||||||
31,682 | Alupar Investimento SA, Rights | $ | 15,287 | |||||||||||||||||
Total Common Stock Rights (cost $0) | 15,287 | |||||||||||||||||||
Shares | Description (1), (7) | Value | ||||||||||||||||||
INVESTMENT COMPANIES – 1.8% | ||||||||||||||||||||
2,994,381 | John Laing Infrastructure Fund | $ | 5,102,423 | |||||||||||||||||
29,469,170 | Keppel Infrastructure Trust | 10,853,278 | ||||||||||||||||||
1,592,153 | Starwood European Real Estate Finance Limited | 2,241,427 | ||||||||||||||||||
2,081 | 3i Infrastructure PLC | 4,935 | ||||||||||||||||||
Total Investment Companies (cost $19,155,347) |
| 18,202,063 | ||||||||||||||||||
Total Long-Term Investments (cost $907,271,531) |
| 951,391,726 | ||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||
SHORT-TERM INVESTMENTS – 3.3% | ||||||||||||||||||||
REPURCHASE AGREEMENTS – 3.3% | ||||||||||||||||||||
$ | 32,817 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/16, repurchase price $32,817,454, collateralized by $32,820,000 | 0.030% | 7/01/16 | $ | 32,817,427 | ||||||||||||||
Total Short-Term Investments (cost $32,817,427) |
| 32,817,427 | ||||||||||||||||||
Total Investments (cost $940,088,958) – 98.3% |
| 984,209,153 | ||||||||||||||||||
Other Assets Less Liabilities – 1.7% | 17,339,888 | |||||||||||||||||||
Net Assets – 100% | $ | 1,001,549,041 |
42 | NUVEEN |
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) | 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. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | For financial reporting purposes, the ratings disclosed are 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) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(6) | Perpetual security. Maturity date is not applicable. |
(7) | 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. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
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 SEC. 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. |
EUR | Euro |
GBP | Pound Sterling |
NOK | Norwegian Krone |
See accompanying notes to financial statements.
NUVEEN | 43 |
Nuveen Real Estate Securities Fund
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 95.4% | ||||||||
COMMON STOCKS – 0.6% | ||||||||
Diversified Telecommunication Services – 0.0% | ||||||||
23,406 | SBA Communications Corporation, (2) | $ | 2,526,444 | |||||
Health Care Providers & Services – 0.6% | ||||||||
1,144,745 | Brookdale Senior Living Inc., (2) | 17,674,863 | ||||||
616,834 | Capital Senior Living Corporation, (2), (3) | 10,899,456 | ||||||
Total Health Care Providers & Services | 28,574,319 | |||||||
Total Common Stocks (cost $27,504,008) | 31,100,763 | |||||||
Shares | Description (1) | Value | ||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 94.8% | ||||||||
Diversified – 5.0% | ||||||||
1,253,333 | Cousins Properties, Inc., (3) | $ | 13,034,663 | |||||
1,098,420 | Forest City Realty Trust Inc. | 24,505,750 | ||||||
1,901,115 | Liberty Property Trust | 75,512,288 | ||||||
133,521 | PS Business Parks Inc. | 14,163,908 | ||||||
1,067,587 | Spirit Realty Capital Inc. | 13,633,086 | ||||||
2,855,290 | STORE Capital Corporation | 84,088,291 | ||||||
728,051 | VEREIT, Inc. | 7,382,437 | ||||||
831,500 | Washington Real Estate Investment Trust | 26,158,990 | ||||||
Total Diversified | 258,479,413 | |||||||
Health Care – 10.0% | ||||||||
305,812 | Care Capital Properties, Inc. | 8,015,333 | ||||||
341,572 | Health Care Property Investors Inc., (3) | 12,084,817 | ||||||
1,390,939 | Healthcare Realty Trust, Inc., (3), (WI/DD) | 48,668,956 | ||||||
2,720,319 | Healthcare Trust of America Inc., Class A | 87,975,116 | ||||||
392,374 | LTC Properties Inc. | 20,297,507 | ||||||
338,268 | Medical Properties Trust Inc. | 5,145,056 | ||||||
555,235 | Omega Healthcare Investors Inc., (3) | 18,850,228 | ||||||
9,466,097 | Parkway Life Real Estate Investment Trust, (4) | 17,030,627 | ||||||
1,230,463 | Physicians Realty Trust | 25,852,028 | ||||||
660,637 | Sabra Health Care Real Estate Investment Trust Inc. | 13,632,245 | ||||||
45,880 | Universal Health Realty Income Trust | 2,623,418 | ||||||
955,549 | Ventas Inc., (3) | 69,583,078 | ||||||
2,479,625 | Welltower Inc., (3) | 188,873,036 | ||||||
Total Health Care | 518,631,445 | |||||||
Hotels – 2.6% | ||||||||
1,265,997 | Chesapeake Lodging Trust | 29,434,430 |
44 | NUVEEN |
Shares | Description (1) | Value | ||||||
Hotels (continued) | ||||||||
2,403,474 | DiamondRock Hospitality Company | $ | 21,703,370 | |||||
726,808 | Hersha Hospitality Trust | 12,464,757 | ||||||
334,001 | LaSalle Hotel Properties | 7,875,744 | ||||||
304,867 | MGM Growth Properties LLC | 8,133,852 | ||||||
368,082 | Pebblebrook Hotel Trust | 9,662,153 | ||||||
191,356 | Summit Hotel Properties Inc. | 2,533,553 | ||||||
3,564,152 | Sunstone Hotel Investors Inc. | 43,019,315 | ||||||
Total Hotels | 134,827,174 | |||||||
Industrial – 8.5% | ||||||||
983,878 | DCT Industrial Trust Inc. | 47,265,499 | ||||||
1,824,752 | Duke Realty Corporation, (3) | 48,647,888 | ||||||
79,697 | EastGroup Properties Inc., (3) | 5,492,717 | ||||||
2,560,454 | First Industrial Realty Trust, Inc. | 71,231,830 | ||||||
4,895,370 | Prologis Inc. | 240,068,945 | ||||||
709,182 | Terreno Realty Corporation | 18,346,538 | ||||||
250,782 | Blackstone Mortgage Trust Inc, Class A | 6,939,138 | ||||||
107,629 | Starwood Property Trust Inc. | 2,230,073 | ||||||
Total Industrial | 440,222,628 | |||||||
Office – 11.8% | ||||||||
54,352 | Alexandria Real Estate Equities Inc. | 5,626,519 | ||||||
703,727 | Boston Properties, Inc. | 92,821,591 | ||||||
1,412,239 | Brandywine Realty Trust | 23,725,615 | ||||||
351,594 | City Office REIT, Inc. | 4,563,690 | ||||||
180,745 | Easterly Government Properties, Inc., (3) | 3,566,099 | ||||||
1,049,435 | Equity Commonwealth, (3) | 30,570,042 | ||||||
601,381 | Highwoods Properties, Inc., (3) | 31,752,917 | ||||||
986,432 | Hudson Pacific Properties Inc., (3) | 28,784,086 | ||||||
716,320 | Kilroy Realty Corporation | 47,484,853 | ||||||
53 | Mack-Cali Realty Corporation | 1,431 | ||||||
2,775,339 | Paramount Group Inc. | 44,238,904 | ||||||
252,261 | Parkway Properties Inc. | 4,220,327 | ||||||
961,651 | SL Green Realty Corporation | 102,386,982 | ||||||
1,892,069 | Vornado Realty Trust, (3) | 189,433,948 | ||||||
Total Office | 609,177,004 | |||||||
Residential – 14.7% | ||||||||
625,886 | American Campus Communities Inc., (3) | 33,090,593 | ||||||
1,472,488 | American Homes 4 Rents, Class A, (3) | 30,156,554 | ||||||
123,201 | Apartment Investment & Management Company, Class A, (3) | 5,440,556 | ||||||
639,353 | AvalonBay Communities, Inc. | 115,332,888 |
NUVEEN | 45 |
Nuveen Real Estate Securities Fund (continued)
Portfolio of Investments | June 30, 2016 (Unaudited) |
Shares | Description (1) | Value | ||||||
Residential (continued) | ||||||||
380,740 | Camden Property Trust | $ | 33,665,031 | |||||
35,788 | Colony Starwood Homes | 1,088,671 | ||||||
730,056 | Education Realty Trust Inc., (3) | 33,684,784 | ||||||
470,230 | Equity Lifestyles Properties Inc., (3) | 37,641,912 | ||||||
3,269,943 | Equity Residential | 225,233,674 | ||||||
406,601 | Essex Property Trust Inc. | 92,741,622 | ||||||
1,268,922 | Post Properties, Inc. | 77,467,688 | ||||||
754,502 | Sun Communities Inc. | 57,825,033 | ||||||
535,305 | UDR Inc. | 19,763,461 | ||||||
Total Residential | 763,132,467 | |||||||
Retail – 28.3% | ||||||||
1,223,131 | Acadia Realty Trust | 43,445,613 | ||||||
370,040 | Agree Realty Corporation | 17,850,730 | ||||||
9,412 | Alexander’s Inc., (3) | 3,851,673 | ||||||
1,684,550 | Brixmor Property Group Inc., (WI/DD) | 44,573,193 | ||||||
1,975,370 | Cedar Shopping Centers Inc. | 14,676,999 | ||||||
2,247,377 | Developers Diversified Realty Corporation | 40,767,419 | ||||||
1,137,514 | Equity One Inc., (3) | 36,605,201 | ||||||
1,143,935 | Federal Realty Investment Trust, (3) | 189,378,439 | ||||||
3,842,502 | General Growth Properties Inc., (3) | 114,583,410 | ||||||
891,001 | Kimco Realty Corporation | 27,959,611 | ||||||
593,251 | Kite Realty Group Trust | 16,628,826 | ||||||
2,787,752 | National Retail Properties, Inc., (3) | 144,182,533 | ||||||
1,118,778 | Ramco-Gershenson Properties Trust | 21,939,237 | ||||||
1,292,544 | Realty Income Corporation | 89,650,852 | ||||||
1,341,455 | Regency Centers Corporation | 112,320,027 | ||||||
1,156,800 | Retail Properties of America Inc., (3) | 19,549,920 | ||||||
2,275,830 | Simon Property Group, Inc., (3) | 493,627,523 | ||||||
2,249 | Taubman Centers Inc. | 166,876 | ||||||
917,271 | Urstadt Biddle Properties Inc. | 22,729,975 | ||||||
184,903 | Weingarten Realty Trust, (3) | 7,547,740 | ||||||
Total Retail | 1,462,035,797 | |||||||
Specialized – 13.9% | ||||||||
23,302 | Coresite Realty Corporation | 2,066,654 | ||||||
152,337 | Crown Castle International Corporation | 15,451,542 | ||||||
535,121 | CubeSmart | 16,524,536 | ||||||
237,131 | CyrusOne Inc., (3) | 13,198,711 | ||||||
1,085,377 | Digital Realty Trust Inc., (3) | 118,295,239 | ||||||
318,349 | Equinix Inc., (3) | 123,433,458 |
46 | NUVEEN |
Shares | Description (1) | Value | ||||||
Specialized (continued) | ||||||||
320,051 | Extra Space Storage Inc., (3) | $ | 29,617,520 | |||||
198 | Four Corners Property Trust, Inc. | 4,077 | ||||||
560,227 | Gaming and Leisure Properties Inc. | 19,316,627 | ||||||
290,911 | National Storage Affiliates Trust | 6,056,767 | ||||||
1,200,991 | Public Storage, Inc., (3) | 306,961,290 | ||||||
152,406 | QTS Realty Trust Inc., Class A Shares, (3) | 8,531,688 | ||||||
569,916 | Sovran Self Storage Inc., (3) | 59,795,588 | ||||||
Total Specialized | 719,253,697 | |||||||
Total Real Estate Investment Trust Common Stocks (cost $3,377,834,569) | 4,905,759,625 | |||||||
Total Long-Term Investments (cost $3,405,338,577) | 4,936,860,388 | |||||||
Shares | Description (1) | Value | ||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 11.2% | ||||||||
Money Market Funds – 11.2% | ||||||||
579,847,233 | Mount Vernon Securities Lending Prime Portfolio, 0.557%, (5), (6) | $ | 579,847,233 | |||||
Total Investments Purchased with Collateral from Securities Lending (cost $579,847,233) | 579,847,233 | |||||||
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 3.8% | ||||||||
Money Market Funds – 3.8% | ||||||||
199,189,077 | First American Treasury Obligations Fund, Class Z, 0.230%, (5) | $ | 199,189,077 | |||||
Total Short-Term Investments (cost $199,189,077) | 199,189,077 | |||||||
Total Investments (cost $4,184,374,887) – 110.4% | 5,715,896,698 | |||||||
Other Assets Less Liabilities – (10.4)% | (540,760,424 | ) | ||||||
Net Assets – 100% | $ | 5,175,136,274 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $572,883,058. |
(4) | 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. |
(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. |
REIT | Real Estate Investment Trust |
(WI/DD) | Investment, or portion of investment, purchased on a when issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN | 47 |
Assets and Liabilities | June 30, 2016 (Unaudited) |
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $536,532,969, $907,271,531 and $3,405,338,577, respectively) | $ | 630,480,066 | $ | 951,391,726 | $ | 4,936,860,388 | ||||||
Short-term investments, at value (cost approximates value) | 3,086,285 | 32,817,427 | 199,189,077 | |||||||||
Investment purchased with collateral from securities lending, at value (cost approximates value) | — | — | 579,847,233 | |||||||||
Cash | 22,556 | 30,731 | — | |||||||||
Cash denominated in foreign currencies (cost $136,041, $62,150 and $—, respectively) | 135,871 | 61,917 | — | |||||||||
Receivable for: | ||||||||||||
Dividends | 1,915,755 | 3,992,805 | 15,510,775 | |||||||||
Due from broker | — | — | 76,108 | |||||||||
Interest | 3 | 3,322,071 | 27,251 | |||||||||
Investments sold | 10,319,365 | 12,514,187 | 80,785,636 | |||||||||
Reclaims | 167,365 | 119,104 | 22,762 | |||||||||
Shares sold | 9,436,838 | 14,522,298 | 16,432,290 | |||||||||
Other assets | 65,671 | 50,582 | 189,372 | |||||||||
Total assets | 655,629,775 | 1,018,822,848 | 5,828,940,892 | |||||||||
Liabilities | ||||||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | — | — | 579,847,233 | |||||||||
Dividends | — | 296,171 | 8,332,790 | |||||||||
Investments purchased | 4,308,337 | 6,079,826 | 51,476,427 | |||||||||
Shares redeemed | 10,091,931 | 9,784,269 | 7,817,903 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 351,997 | 547,990 | 3,337,052 | |||||||||
Directors fees | 21,458 | 15,444 | 190,595 | |||||||||
12b-1 distribution and service fees | 74,640 | 158,438 | 252,279 | |||||||||
Other | 516,284 | 391,669 | 2,550,339 | |||||||||
Total liabilities | 15,364,647 | 17,273,807 | 653,804,618 | |||||||||
Net assets | $ | 640,265,128 | $ | 1,001,549,041 | $ | 5,175,136,274 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 265,103,180 | $ | 195,989,708 | $ | 752,349,845 | ||||||
Shares outstanding | 23,941,828 | 8,343,919 | 30,175,245 | |||||||||
Net asset value (“NAV”) per share | $ | 11.07 | $ | 23.49 | $ | 24.93 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | $ | 11.75 | $ | 24.92 | $ | 26.45 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 23,833,372 | $ | 152,351,952 | $ | 100,948,590 | ||||||
Shares outstanding | 2,175,536 | 6,481,887 | 4,150,508 | |||||||||
NAV and offering price per share | $ | 10.96 | $ | 23.50 | $ | 24.32 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 725,456 | — | $ | 59,985,518 | |||||||
Shares outstanding | 64,630 | — | 2,370,624 | |||||||||
NAV and offering price per share | $ | 11.22 | — | $ | 25.30 | |||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 8,153,195 | $ | 7,258,993 | $ | 305,008,775 | ||||||
Shares outstanding | 737,190 | 309,038 | 12,003,441 | |||||||||
NAV and offering price per share | $ | 11.06 | $ | 23.49 | $ | 25.41 | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 342,449,925 | $ | 645,948,388 | $ | 3,956,843,546 | ||||||
Shares outstanding | 30,957,411 | 27,497,626 | 156,573,739 | |||||||||
NAV and offering price per share | $ | 11.06 | $ | 23.49 | $ | 25.27 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 552,445,198 | $ | 1,006,891,778 | $ | 3,502,354,335 | ||||||
Undistributed (Over-distribution of) net investment income | 9,041,147 | 509,960 | (18,814,811 | ) | ||||||||
Accumulated net realized gain (loss) | (15,147,111 | ) | (49,957,306 | ) | 160,074,939 | |||||||
Net unrealized appreciation (depreciation) | 93,925,894 | 44,104,609 | 1,531,521,811 | |||||||||
Net assets | $ | 640,265,128 | $ | 1,001,549,041 | $ | 5,175,136,274 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | $ | 0.0001 |
See accompanying notes to financial statements.
48 | NUVEEN |
Operations | Six Months Ended June 30, 2016 (Unaudited) |
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Investment Income | ||||||||||||
Dividend (net of foreign tax withheld of $945,680, $798,002 and $50,721, respectively) | $ | 12,678,984 | $ | 22,210,436 | $ | 79,766,012 | ||||||
Interest (net of foreign tax withheld of $—, $— and $—, respectively) | 1,017 | 6,939,565 | 123,585 | |||||||||
Securities lending income, net | — | — | 333,120 | |||||||||
Total investment income | 12,680,001 | 29,150,001 | 80,222,717 | |||||||||
Expenses | ||||||||||||
Management fees | 2,776,772 | 3,198,084 | 19,379,589 | |||||||||
12b-1 service fees – Class A | 339,686 | 209,398 | 867,632 | |||||||||
12b-1 distribution and service fees – Class C | 112,890 | 660,719 | 458,072 | |||||||||
12b-1 distribution and service fees – Class R3 | 1,544 | — | 138,497 | |||||||||
Shareholder servicing agent fees | 609,910 | 443,428 | 4,183,077 | |||||||||
Custodian fees | 161,514 | 127,224 | 232,354 | |||||||||
Directors fees | 8,633 | 11,286 | 66,380 | |||||||||
Professional fees | 49,608 | 44,167 | 164,091 | |||||||||
Shareholder reporting expenses | 74,555 | 119,317 | 458,883 | |||||||||
Federal and state registration fees | 34,820 | 70,638 | 90,654 | |||||||||
Other | 11,827 | 13,873 | 35,731 | |||||||||
Total expenses before fee waiver/expense reimbursement | 4,181,759 | 4,898,134 | 26,074,960 | |||||||||
Fee waiver/expense reimbursement | (735,278 | ) | (71,106 | ) | — | |||||||
Net expenses | 3,446,481 | 4,827,028 | 26,074,960 | |||||||||
Net investment income (loss) | 9,233,520 | 24,322,973 | 54,147,757 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | (1,107,396 | ) | (19,643,975 | ) | 148,943,210 | |||||||
Futures contracts | — | (180,784 | ) | — | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments and foreign currency | 69,979,538 | 83,197,985 | 335,692,974 | |||||||||
Futures contracts | — | (29,714 | ) | — | ||||||||
Net realized and unrealized gain (loss) | 68,872,142 | 63,343,512 | 484,636,184 | |||||||||
Net increase (decrease) in net assets from operations | $ | 78,105,662 | $ | 87,666,485 | $ | 538,783,941 |
See accompanying notes to financial statements.
NUVEEN | 49 |
Changes in Net Assets | (Unaudited) |
Global Infrastructure | Real Asset Income | |||||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 9,233,520 | $ | 13,376,660 | $ | 24,322,973 | $ | 37,947,976 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (1,107,396 | ) | (5,242,298 | ) | (19,643,975 | ) | (29,153,469 | ) | ||||||||||||
Futures contracts | — | — | (180,784 | ) | (230,312 | ) | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | 69,979,538 | (58,260,889 | ) | 83,197,985 | (45,015,221 | ) | ||||||||||||||
Futures contracts | — | — | (29,714 | ) | 35,407 | |||||||||||||||
Net increase (decrease) in net assets from operations | 78,105,662 | (50,126,527 | ) | 87,666,485 | (36,415,619 | ) | ||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | — | (5,742,790 | ) | (4,503,427 | ) | (7,210,315 | ) | |||||||||||||
Class C Shares | — | (267,494 | ) | (3,049,558 | ) | (5,264,396 | ) | |||||||||||||
Class R3 Shares | — | (10,452 | ) | — | — | |||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | (7,449,963 | ) | (15,942,713 | ) | (24,669,751 | ) | |||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | — | (2,939,567 | ) | — | (87,603 | ) | ||||||||||||||
Class C Shares | — | (226,933 | ) | — | (63,961 | ) | ||||||||||||||
Class R3 Shares | — | (6,698 | ) | — | — | |||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | (3,397,978 | ) | — | (299,729 | ) | ||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | — | — | (679,198 | ) | |||||||||||||||
Class C Shares | — | — | — | (495,896 | ) | |||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | (2,323,846 | ) | |||||||||||||||
Decrease in net assets from distributions to shareholders | — | (20,041,875 | ) | (23,495,698 | ) | (41,094,695 | ) | |||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 73,667,713 | 219,472,222 | 215,623,290 | 662,083,323 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | — | 14,888,996 | 21,953,700 | 38,535,295 | ||||||||||||||||
73,667,713 | 234,361,218 | 237,576,990 | 700,618,618 | |||||||||||||||||
Cost of shares redeemed | (142,251,859 | ) | (201,971,824 | ) | (145,712,648 | ) | (304,591,153 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (68,584,146 | ) | 32,389,394 | 91,864,342 | 396,027,465 | |||||||||||||||
Net increase (decrease) in net assets | 9,521,516 | (37,779,008 | ) | 156,035,129 | 318,517,151 | |||||||||||||||
Net assets at the beginning of period | 630,743,612 | 668,522,620 | 845,513,912 | 526,996,761 | ||||||||||||||||
Net assets at the end of period | $ | 640,265,128 | $ | 630,743,612 | $ | 1,001,549,041 | $ | 845,513,912 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 9,041,147 | $ | (192,373 | ) | $ | 509,960 | $ | (317,315 | ) |
See accompanying notes to financial statements.
50 | NUVEEN |
Real Estate Securities | ||||||||
Six Months Ended 6/30/16 | Year Ended 12/31/15 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 54,147,757 | $ | 77,295,589 | ||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | 148,943,210 | 297,766,181 | ||||||
Futures contracts | — | — | ||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | 335,692,974 | (233,603,288 | ) | |||||
Futures contracts | — | — | ||||||
Net increase (decrease) in net assets from operations | 538,783,941 | 141,458,482 | ||||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A Shares | (9,509,239 | ) | (11,083,720 | ) | ||||
Class C Shares | (911,502 | ) | (1,473,932 | ) | ||||
Class R3 Shares | (683,125 | ) | (967,928 | ) | ||||
Class R6 Shares | (3,970,083 | ) | (3,643,691 | ) | ||||
Class I Shares | (53,683,844 | ) | (59,164,505 | ) | ||||
From accumulated net realized gains: | ||||||||
Class A Shares | — | (44,723,405 | ) | |||||
Class C Shares | — | (5,947,397 | ) | |||||
Class R3 Shares | — | (3,905,642 | ) | |||||
Class R6 Shares | — | (14,702,489 | ) | |||||
Class I Shares | — | (238,731,956 | ) | |||||
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 | (68,757,793 | ) | (384,344,665 | ) | ||||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 648,113,071 | 1,272,872,284 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 51,915,015 | 294,759,655 | ||||||
700,028,086 | 1,567,631,939 | |||||||
Cost of shares redeemed | (756,366,198 | ) | (1,809,523,366 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (56,338,112 | ) | (241,891,427 | ) | ||||
Net increase (decrease) in net assets | 413,688,036 | (484,777,610 | ) | |||||
Net assets at the beginning of period | 4,761,448,238 | 5,246,225,848 | ||||||
Net assets at the end of period | $ | 5,175,136,274 | $ | 4,761,448,238 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (18,814,811 | ) | $ | (4,204,775 | ) |
See accompanying notes to financial statements.
NUVEEN | 51 |
Highlights (Unaudited)
Global Infrastructure
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date) | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (12/07) |
| |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||
2016(f) | $ | 9.75 | $ | 0.14 | $ | 1.18 | $ | 1.32 | $ | — | $ | — | $ | — | $ | 11.07 | ||||||||||||||||||||
2015 | 10.79 | 0.19 | (0.93 | ) | (0.74 | ) | (0.20 | ) | (0.10 | ) | (0.30 | ) | 9.75 | |||||||||||||||||||||||
2014 | 10.35 | 0.20 | 1.24 | 1.44 | (0.16 | ) | (0.84 | ) | (1.00 | ) | 10.79 | |||||||||||||||||||||||||
2013 | 9.56 | 0.21 | 1.17 | 1.38 | (0.16 | ) | (0.43 | ) | (0.59 | ) | 10.35 | |||||||||||||||||||||||||
2012 | 8.59 | 0.21 | 1.12 | 1.33 | (0.20 | ) | (0.16 | ) | (0.36 | ) | 9.56 | |||||||||||||||||||||||||
2011(d) | 8.87 | 0.04 | 0.03 | 0.07 | (0.13 | ) | (0.22 | ) | (0.35 | ) | 8.59 | |||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||
2011 | 9.42 | 0.20 | (0.11 | ) | 0.09 | (0.16 | ) | (0.48 | ) | (0.64 | ) | 8.87 | ||||||||||||||||||||||||
Class C (11/08) |
| |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||
2016(f) | 9.69 | 0.11 | 1.16 | 1.27 | — | — | — | 10.96 | ||||||||||||||||||||||||||||
2015 | 10.71 | 0.11 | (0.91 | ) | (0.80 | ) | (0.12 | ) | (0.10 | ) | (0.22 | ) | 9.69 | |||||||||||||||||||||||
2014 | 10.27 | 0.11 | 1.23 | 1.34 | (0.06 | ) | (0.84 | ) | (0.90 | ) | 10.71 | |||||||||||||||||||||||||
2013 | 9.49 | 0.13 | 1.17 | 1.30 | (0.09 | ) | (0.43 | ) | (0.52 | ) | 10.27 | |||||||||||||||||||||||||
2012 | 8.53 | 0.13 | 1.11 | 1.24 | (0.12 | ) | (0.16 | ) | (0.28 | ) | 9.49 | |||||||||||||||||||||||||
2011(d) | 8.75 | 0.03 | 0.03 | 0.06 | (0.06 | ) | (0.22 | ) | (0.28 | ) | 8.53 | |||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||
2011 | 9.32 | 0.14 | (0.12 | ) | 0.02 | (0.11 | ) | (0.48 | ) | (0.59 | ) | 8.75 | ||||||||||||||||||||||||
Class R3 (11/08) |
| |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||
2016(f) | 9.90 | 0.14 | 1.18 | 1.32 | — | — | — | 11.22 | ||||||||||||||||||||||||||||
2015 | 10.95 | 0.17 | (0.95 | ) | (0.78 | ) | (0.17 | ) | (0.10 | ) | (0.27 | ) | 9.90 | |||||||||||||||||||||||
2014 | 10.48 | 0.18 | 1.25 | 1.43 | (0.12 | ) | (0.84 | ) | (0.96 | ) | 10.95 | |||||||||||||||||||||||||
2013 | 9.68 | 0.19 | 1.18 | 1.37 | (0.14 | ) | (0.43 | ) | (0.57 | ) | 10.48 | |||||||||||||||||||||||||
2012 | 8.68 | 0.18 | 1.15 | 1.33 | (0.17 | ) | (0.16 | ) | (0.33 | ) | 9.68 | |||||||||||||||||||||||||
2011(d) | 8.95 | 0.04 | 0.02 | 0.06 | (0.11 | ) | (0.22 | ) | (0.33 | ) | 8.68 | |||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||
2011 | 9.40 | 0.05 | (0.02 | ) | 0.03 | — | (0.48 | ) | (0.48 | ) | 8.95 | |||||||||||||||||||||||||
Class R6 (6/16) | ||||||||||||||||||||||||||||||||||||
2016(g) | 11.06 | — | — | — | — | — | — | 11.06 | ||||||||||||||||||||||||||||
Class I (12/07) |
| |||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||
2016(f) | 9.73 | 0.16 | 1.17 | 1.33 | — | — | — | 11.06 | ||||||||||||||||||||||||||||
2015 | 10.77 | 0.22 | (0.94 | ) | (0.72 | ) | (0.22 | ) | (0.10 | ) | (0.32 | ) | 9.73 | |||||||||||||||||||||||
2014 | 10.35 | 0.21 | 1.26 | 1.47 | (0.21 | ) | (0.84 | ) | (1.05 | ) | 10.77 | |||||||||||||||||||||||||
2013 | 9.57 | 0.24 | 1.17 | 1.41 | (0.20 | ) | (0.43 | ) | (0.63 | ) | 10.35 | |||||||||||||||||||||||||
2012 | 8.62 | 0.23 | 1.13 | 1.36 | (0.25 | ) | (0.16 | ) | (0.41 | ) | 9.57 | |||||||||||||||||||||||||
2011(d) | 8.92 | 0.04 | 0.03 | 0.07 | (0.15 | ) | (0.22 | ) | (0.37 | ) | 8.62 | |||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||
2011 | 9.46 | 0.23 | (0.12 | ) | 0.11 | (0.17 | ) | (0.48 | ) | �� | (0.65 | ) | 8.92 |
52 | NUVEEN |
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) | ||||||||||||||||||||||||||||
13.54 | % | $ | 265,103 | 1.46 | %* | 2.61 | %* | 1.22 | %* | 2.85 | %* | 74 | % | |||||||||||||||||||||
(6.89 | ) | 287,424 | 1.45 | 1.59 | 1.22 | 1.82 | 133 | |||||||||||||||||||||||||||
14.11 | 268,672 | 1.43 | 1.57 | 1.22 | 1.77 | 162 | ||||||||||||||||||||||||||||
14.73 | 107,137 | 1.43 | 1.87 | 1.23 | 2.07 | 166 | ||||||||||||||||||||||||||||
15.52 | 68,763 | 1.43 | 2.08 | 1.24 | 2.28 | 200 | ||||||||||||||||||||||||||||
0.81 | 51,681 | 1.64 | * | 2.38 | * | 1.23 | * | 2.79 | * | 42 | ||||||||||||||||||||||||
0.97 | 54,697 | 1.62 | 1.86 | 1.25 | 2.24 | 273 | ||||||||||||||||||||||||||||
13.11 | 23,833 | 2.21 | * | 1.92 | * | 1.97 | * | 2.16 | * | 74 | ||||||||||||||||||||||||
(7.50 | ) | 22,307 | 2.20 | 0.83 | 1.97 | 1.05 | 133 | |||||||||||||||||||||||||||
13.28 | 24,820 | 2.18 | 0.74 | 1.97 | 0.95 | 162 | ||||||||||||||||||||||||||||
13.90 | 20,127 | 2.18 | 1.11 | 1.98 | 1.31 | 166 | ||||||||||||||||||||||||||||
14.58 | 14,291 | 2.19 | 1.25 | 1.99 | 1.45 | 200 | ||||||||||||||||||||||||||||
0.62 | 10,767 | 2.39 | * | 1.64 | * | 1.98 | * | 2.05 | * | 42 | ||||||||||||||||||||||||
0.37 | 10,674 | 2.38 | 1.14 | 2.00 | 1.53 | 273 | ||||||||||||||||||||||||||||
13.33 | 725 | 1.71 | * | 2.53 | * | 1.47 | * | 2.77 | * | 74 | ||||||||||||||||||||||||
(7.10 | ) | 607 | 1.70 | 1.39 | 1.47 | 1.62 | 133 | |||||||||||||||||||||||||||
13.86 | 399 | 1.68 | 1.33 | 1.47 | 1.54 | 162 | ||||||||||||||||||||||||||||
14.40 | 138 | 1.67 | 1.61 | 1.48 | 1.81 | 166 | ||||||||||||||||||||||||||||
15.36 | 128 | 1.66 | 1.67 | 1.49 | 1.84 | 200 | ||||||||||||||||||||||||||||
0.68 | 7 | 1.89 | * | 1.94 | * | 1.48 | * | 2.38 | * | 42 | ||||||||||||||||||||||||
0.36 | 15 | 2.05 | (0.03 | ) | 1.50 | 0.55 | 273 | |||||||||||||||||||||||||||
— | 8,153 | — | — | — | — | — | ||||||||||||||||||||||||||||
13.67 | 342,450 | 1.21 | * | 2.95 | * | 0.97 | * | 3.19 | * | 74 | ||||||||||||||||||||||||
(6.67 | ) | 320,406 | 1.20 | 1.83 | 0.97 | 2.05 | 133 | |||||||||||||||||||||||||||
14.46 | 374,631 | 1.18 | 1.68 | 0.97 | 1.88 | 162 | ||||||||||||||||||||||||||||
15.03 | 525,149 | 1.18 | 2.12 | 0.98 | 2.33 | 166 | ||||||||||||||||||||||||||||
15.78 | 246,922 | 1.18 | 2.32 | 0.99 | 2.51 | 200 | ||||||||||||||||||||||||||||
0.85 | 117,085 | 1.39 | * | 2.65 | * | 0.98 | * | 3.06 | * | 42 | ||||||||||||||||||||||||
1.28 | 112,697 | 1.38 | 2.12 | 1.00 | 2.51 | 273 |
(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 two months ended December 31, 2011. |
(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 June 30, 2016. |
(g) | Class R6 Shares commenced operations at the close of business on June 30, 2016 and conducted no business during the period ended June 30, 2016. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 53 |
Financial Highlights (Unaudited) (continued)
Real Asset Income
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended December 31, | 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 (9/11) |
| |||||||||||||||||||||||||||||||||||||||
2016(f) | $ | 21.87 | $ | 0.61 | $ | 1.60 | $ | 2.21 | $ | (0.59 | ) | $ | — | $ | — | $ | (0.59 | ) | $ | 23.49 | ||||||||||||||||||||
2015 | 23.78 | 1.08 | (1.80 | ) | (0.72 | ) | (1.08 | ) | (0.01 | ) | (0.10 | ) | (1.19 | ) | 21.87 | |||||||||||||||||||||||||
2014 | 22.01 | 1.15 | 2.18 | 3.33 | (1.16 | ) | (0.40 | ) | — | (1.56 | ) | 23.78 | ||||||||||||||||||||||||||||
2013 | 22.27 | 1.14 | 0.21 | 1.35 | (1.12 | ) | (0.49 | ) | — | (1.61 | ) | 22.01 | ||||||||||||||||||||||||||||
2012 | 20.38 | 1.22 | 2.21 | 3.43 | (1.13 | ) | (0.41 | ) | — | (1.54 | ) | 22.27 | ||||||||||||||||||||||||||||
2011(d) | 20.00 | 0.26 | 0.35 | 0.61 | (0.23 | ) | — | — | (0.23 | ) | 20.38 | |||||||||||||||||||||||||||||
Class C (9/11) |
| |||||||||||||||||||||||||||||||||||||||
2016(f) | 21.89 | 0.53 | 1.59 | 2.12 | (0.51 | ) | — | — | (0.51 | ) | 23.50 | |||||||||||||||||||||||||||||
2015 | 23.79 | 0.92 | (1.81 | ) | (0.89 | ) | (0.90 | ) | (0.01 | ) | (0.10 | ) | (1.01 | ) | 21.89 | |||||||||||||||||||||||||
2014 | 22.01 | 0.98 | 2.18 | 3.16 | (0.98 | ) | (0.40 | ) | — | (1.38 | ) | 23.79 | ||||||||||||||||||||||||||||
2013 | 22.26 | 0.99 | 0.19 | 1.18 | (0.94 | ) | (0.49 | ) | — | (1.43 | ) | 22.01 | ||||||||||||||||||||||||||||
2012 | 20.37 | 1.08 | 2.19 | 3.27 | (0.97 | ) | (0.41 | ) | — | (1.38 | ) | 22.26 | ||||||||||||||||||||||||||||
2011(d) | 20.00 | 0.21 | 0.35 | 0.56 | (0.19 | ) | — | — | (0.19 | ) | 20.37 | |||||||||||||||||||||||||||||
Class R6 (6/16) | ||||||||||||||||||||||||||||||||||||||||
2016 (g) | 23.49 | — | — | — | — | — | — | — | 23.49 | |||||||||||||||||||||||||||||||
Class I (9/11) |
| |||||||||||||||||||||||||||||||||||||||
2016(f) | 21.88 | 0.64 | 1.59 | 2.23 | (0.62 | ) | — | — | (0.62 | ) | 23.49 | |||||||||||||||||||||||||||||
2015 | 23.78 | 1.14 | (1.79 | ) | (0.65 | ) | (1.14 | ) | (0.01 | ) | (0.10 | ) | (1.25 | ) | 21.88 | |||||||||||||||||||||||||
2014 | 22.01 | 1.27 | 2.12 | 3.39 | (1.22 | ) | (0.40 | ) | — | (1.62 | ) | 23.78 | ||||||||||||||||||||||||||||
2013 | 22.27 | 1.21 | 0.19 | 1.40 | (1.17 | ) | (0.49 | ) | — | (1.66 | ) | 22.01 | ||||||||||||||||||||||||||||
2012 | 20.38 | 1.24 | 2.24 | 3.48 | (1.18 | ) | (0.41 | ) | — | (1.59 | ) | 22.27 | ||||||||||||||||||||||||||||
2011(d) | 20.00 | 0.27 | 0.36 | 0.63 | (0.25 | ) | — | — | (0.25 | ) | 20.38 |
54 | NUVEEN |
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) | ||||||||||||||||||||||||||||
10.28 | % | $ | 195,990 | 1.18 | %* | 5.55 | %* | 1.16 | %* | 5.57 | %* | 52 | % | |||||||||||||||||||||
(3.19 | ) | 161,064 | 1.18 | 4.68 | 1.16 | 4.69 | 82 | |||||||||||||||||||||||||||
15.40 | 115,322 | 1.25 | 4.77 | 1.17 | 4.85 | 86 | ||||||||||||||||||||||||||||
6.13 | 49,174 | 1.34 | 4.87 | 1.17 | 5.05 | 141 | ||||||||||||||||||||||||||||
17.22 | 10,365 | 1.68 | 5.06 | 1.17 | 5.57 | 177 | ||||||||||||||||||||||||||||
3.06 | 52 | 2.12 | * | 3.34 | * | 1.18 | * | 4.28 | * | 65 | ||||||||||||||||||||||||
9.86 | 152,352 | 1.93 | * | 4.79 | * | 1.91 | * | 4.81 | * | 52 | ||||||||||||||||||||||||
(3.88 | ) | 129,301 | 1.92 | 3.99 | 1.91 | 4.01 | 82 | |||||||||||||||||||||||||||
14.54 | 65,928 | 2.00 | 4.07 | 1.92 | 4.14 | 86 | ||||||||||||||||||||||||||||
5.38 | 24,648 | 2.09 | 4.19 | 1.92 | 4.37 | 141 | ||||||||||||||||||||||||||||
16.36 | 4,479 | 2.33 | 4.51 | 1.92 | 4.92 | 177 | ||||||||||||||||||||||||||||
2.82 | 51 | 2.87 | * | 2.59 | * | 1.93 | * | 3.53 | * | 65 | ||||||||||||||||||||||||
— | 7,259 | — | — | — | — | — | ||||||||||||||||||||||||||||
10.36 | 645,948 | 0.93 | * | 5.80 | * | 0.91 | * | 5.82 | * | 52 | ||||||||||||||||||||||||
(2.90 | ) | 555,149 | 0.93 | 4.97 | 0.91 | 4.98 | 82 | |||||||||||||||||||||||||||
15.69 | 345,747 | 0.99 | 5.29 | 0.92 | 5.37 | 86 | ||||||||||||||||||||||||||||
6.40 | 58,677 | 1.10 | 5.11 | 0.92 | 5.29 | 141 | ||||||||||||||||||||||||||||
17.50 | 27,343 | 1.52 | 5.10 | 0.92 | 5.70 | 177 | ||||||||||||||||||||||||||||
3.13 | 10,159 | 1.87 | * | 3.60 | * | 0.93 | * | 4.54 | * | 65 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in 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 September 13, 2011 (commencement of operations) through December 31, 2011. |
(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 June 30, 2016. |
(g) | Class R6 Shares commenced operations at the close of business on June 30, 2016 and conducted no business during the period ended June 30, 2016. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 55 |
Financial Highlights (Unaudited) (continued)
Real Estate Securities
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date) | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class��A (9/95) |
| |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||||||
2016(g) | $ | 22.66 | $ | 0.23 | $ | 2.35 | $ | 2.58 | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | $ | 24.93 | ||||||||||||||||||||
2015 | 23.79 | 0.32 | 0.38 | 0.70 | (0.37 | ) | (1.46 | ) | — | (1.83 | ) | 22.66 | ||||||||||||||||||||||||||||
2014 | 19.46 | 0.32 | 5.62 | 5.94 | (0.33 | ) | (1.28 | ) | — | (1.61 | ) | 23.79 | ||||||||||||||||||||||||||||
2013 | 21.02 | 0.27 | (0.06 | ) | 0.21 | (0.29 | ) | (1.35 | ) | (0.13 | ) | (1.77 | ) | 19.46 | ||||||||||||||||||||||||||
2012 | 18.76 | 0.28 | 3.07 | 3.35 | (0.43 | ) | (0.66 | ) | — | (1.09 | ) | 21.02 | ||||||||||||||||||||||||||||
2011(d) | 18.84 | 0.09 | 0.05 | 0.14 | (0.11 | ) | (0.11 | ) | — | (0.22 | ) | 18.76 | ||||||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||||||
2011 | 17.58 | 0.29 | 1.43 | 1.72 | (0.22 | ) | (0.24 | ) | — | (0.46 | ) | 18.84 | ||||||||||||||||||||||||||||
Class C (2/00) |
| |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||||||
2016(g) | 22.11 | 0.14 | 2.29 | 2.43 | (0.22 | ) | — | — | (0.22 | ) | 24.32 | |||||||||||||||||||||||||||||
2015 | 23.24 | 0.15 | 0.36 | 0.51 | (0.18 | ) | (1.46 | ) | — | (1.64 | ) | 22.11 | ||||||||||||||||||||||||||||
2014 | 19.03 | 0.15 | 5.50 | 5.65 | (0.16 | ) | (1.28 | ) | — | (1.44 | ) | 23.24 | ||||||||||||||||||||||||||||
2013 | 20.59 | 0.12 | (0.08 | ) | 0.04 | (0.12 | ) | (1.35 | ) | (0.13 | ) | (1.60 | ) | 19.03 | ||||||||||||||||||||||||||
2012 | 18.39 | 0.12 | 3.01 | 3.13 | (0.27 | ) | (0.66 | ) | — | (0.93 | ) | 20.59 | ||||||||||||||||||||||||||||
2011(d) | 18.46 | 0.06 | 0.05 | 0.11 | (0.07 | ) | (0.11 | ) | — | (0.18 | ) | 18.39 | ||||||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||||||
2011 | 17.23 | 0.14 | 1.41 | 1.55 | (0.08 | ) | (0.24 | ) | — | (0.32 | ) | 18.46 | ||||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||||||
2016(g) | 23.00 | 0.21 | 2.38 | 2.59 | (0.29 | ) | — | — | (0.29 | ) | 25.30 | |||||||||||||||||||||||||||||
2015 | 24.13 | 0.25 | 0.40 | 0.65 | (0.32 | ) | (1.46 | ) | — | (1.78 | ) | 23.00 | ||||||||||||||||||||||||||||
2014 | 19.72 | 0.28 | 5.69 | 5.97 | (0.28 | ) | (1.28 | ) | — | (1.56 | ) | 24.13 | ||||||||||||||||||||||||||||
2013 | 21.29 | 0.23 | (0.08 | ) | 0.15 | (0.24 | ) | (1.35 | ) | (0.13 | ) | (1.72 | ) | 19.72 | ||||||||||||||||||||||||||
2012 | 18.99 | 0.23 | 3.12 | 3.35 | (0.39 | ) | (0.66 | ) | — | (1.05 | ) | 21.29 | ||||||||||||||||||||||||||||
2011(d) | 19.07 | 0.08 | 0.05 | 0.13 | (0.10 | ) | (0.11 | ) | — | (0.21 | ) | 18.99 | ||||||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||||||
2011 | 17.79 | 0.24 | 1.46 | 1.70 | (0.16 | ) | (0.26 | ) | — | (0.42 | ) | 19.07 | ||||||||||||||||||||||||||||
Class R6 (4/13) |
| |||||||||||||||||||||||||||||||||||||||
2016(g) | 23.07 | 0.30 | 2.39 | 2.69 | (0.35 | ) | — | — | (0.35 | ) | 25.41 | |||||||||||||||||||||||||||||
2015 | 24.17 | 0.43 | 0.37 | 0.80 | (0.44 | ) | (1.46 | ) | — | (1.90 | ) | 23.07 | ||||||||||||||||||||||||||||
2014 | 19.72 | 0.48 | 5.65 | 6.13 | (0.40 | ) | (1.28 | ) | — | (1.68 | ) | 24.17 | ||||||||||||||||||||||||||||
2013(e) | 24.06 | 0.31 | (2.94 | ) | (2.63 | ) | (0.23 | ) | (1.35 | ) | (0.13 | ) | (1.71 | ) | 19.72 | |||||||||||||||||||||||||
Class I (6/95) |
| |||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: | ||||||||||||||||||||||||||||||||||||||||
2016(g) | 22.97 | 0.27 | 2.37 | 2.64 | (0.34 | ) | — | — | (0.34 | ) | 25.27 | |||||||||||||||||||||||||||||
2015 | 24.10 | 0.38 | 0.39 | 0.77 | (0.44 | ) | (1.46 | ) | — | (1.90 | ) | 22.97 | ||||||||||||||||||||||||||||
2014 | 19.70 | 0.40 | 5.68 | 6.08 | (0.40 | ) | (1.28 | ) | — | (1.68 | ) | 24.10 | ||||||||||||||||||||||||||||
2013 | 21.26 | 0.35 | (0.08 | ) | 0.27 | (0.35 | ) | (1.35 | ) | (0.13 | ) | (1.83 | ) | 19.70 | ||||||||||||||||||||||||||
2012 | 18.97 | 0.35 | 3.09 | 3.44 | (0.49 | ) | (0.66 | ) | — | (1.15 | ) | 21.26 | ||||||||||||||||||||||||||||
2011(d) | 19.05 | 0.10 | 0.05 | 0.15 | (0.12 | ) | (0.11 | ) | — | (0.23 | ) | 18.97 | ||||||||||||||||||||||||||||
Year Ended 10/31: | ||||||||||||||||||||||||||||||||||||||||
2011 | 17.77 | 0.34 | 1.45 | 1.79 | (0.24 | ) | (0.27 | ) | — | (0.51 | ) | 19.05 |
56 | NUVEEN |
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(f) | ||||||||||||||||||||||||||||
11.44 | % | $ | 752,350 | 1.30 | %* | 2.06 | %* | 1.30 | %* | 2.06 | %* | 70 | % | |||||||||||||||||||||
3.22 | 690,025 | 1.30 | 1.37 | 1.30 | 1.37 | 104 | ||||||||||||||||||||||||||||
30.94 | 751,098 | 1.30 | 1.44 | 1.30 | 1.44 | 89 | ||||||||||||||||||||||||||||
1.04 | 634,978 | 1.25 | 1.25 | 1.25 | 1.25 | 89 | ||||||||||||||||||||||||||||
18.07 | 750,073 | 1.28 | 1.33 | 1.26 | 1.35 | 76 | ||||||||||||||||||||||||||||
0.72 | 722,221 | 1.31 | * | 2.82 | * | 1.28 | * | 2.86 | * | 21 | ||||||||||||||||||||||||
9.94 | 732,181 | 1.28 | 1.54 | 1.27 | 1.55 | 103 | ||||||||||||||||||||||||||||
11.02 | 100,949 | 2.05 | * | 1.31 | * | 2.05 | * | 1.31 | * | 70 | ||||||||||||||||||||||||
2.45 | 93,499 | 2.05 | 0.65 | 2.05 | 0.65 | 104 | ||||||||||||||||||||||||||||
29.99 | 91,172 | 2.05 | 0.69 | 2.05 | 0.69 | 89 | ||||||||||||||||||||||||||||
0.25 | 72,172 | 2.00 | 0.56 | 2.00 | 0.56 | 89 | ||||||||||||||||||||||||||||
17.19 | 69,935 | 2.03 | 0.57 | 2.01 | 0.60 | 76 | ||||||||||||||||||||||||||||
0.60 | 59,469 | 2.06 | * | 2.06 | * | 2.03 | * | 2.09 | * | 21 | ||||||||||||||||||||||||
9.13 | 60,812 | 2.04 | 0.76 | 2.02 | 0.77 | 103 | ||||||||||||||||||||||||||||
11.29 | 59,986 | 1.55 | * | 1.85 | * | 1.55 | * | 1.85 | * | 70 | ||||||||||||||||||||||||
2.95 | 57,416 | 1.55 | 1.06 | 1.55 | 1.06 | 104 | ||||||||||||||||||||||||||||
30.66 | 68,569 | 1.55 | 1.22 | 1.55 | 1.22 | 89 | ||||||||||||||||||||||||||||
0.75 | 59,238 | 1.50 | 1.02 | 1.50 | 1.02 | 89 | ||||||||||||||||||||||||||||
17.80 | 72,742 | 1.53 | 1.09 | 1.51 | 1.12 | 76 | ||||||||||||||||||||||||||||
0.66 | 62,888 | 1.56 | * | 2.59 | * | 1.53 | * | 2.62 | * | 21 | ||||||||||||||||||||||||
9.68 | 63,335 | 1.54 | 1.30 | 1.52 | 1.31 | 103 | ||||||||||||||||||||||||||||
11.69 | 305,009 | 0.87 | * | 2.57 | * | 0.87 | * | 2.57 | * | 70 | ||||||||||||||||||||||||
3.60 | 254,414 | 0.87 | 1.80 | 0.87 | 1.80 | 104 | ||||||||||||||||||||||||||||
31.51 | 250,116 | 0.89 | 2.12 | 0.89 | 2.12 | 89 | ||||||||||||||||||||||||||||
(10.88 | ) | 79,796 | 0.88 | * | 2.15 | * | 0.88 | * | 2.15 | * | 89 | |||||||||||||||||||||||
11.56 | 3,956,844 | 1.05 | * | 2.35 | * | 1.05 | * | 2.35 | * | 70 | ||||||||||||||||||||||||
3.48 | 3,666,093 | 1.05 | 1.58 | 1.05 | 1.58 | 104 | ||||||||||||||||||||||||||||
31.28 | 4,085,270 | 1.05 | 1.75 | 1.05 | 1.75 | 89 | ||||||||||||||||||||||||||||
1.32 | 3,105,950 | 1.00 | 1.56 | 1.00 | 1.56 | 89 | ||||||||||||||||||||||||||||
18.34 | 3,214,954 | 1.03 | 1.62 | 1.01 | 1.65 | 76 | ||||||||||||||||||||||||||||
0.78 | 2,280,291 | 1.06 | * | 3.08 | * | 1.03 | * | 3.12 | * | 21 | ||||||||||||||||||||||||
10.24 | 2,271,583 | 1.04 | 1.79 | 1.02 | 1.80 | 103 |
(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 two months ended December 31, 2011. |
(e) | For the period April 30, 2013 (commencement of operations) through December 31, 2013. |
(f) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Footnote 5 – Investment Transactions) divided by the average long-term market value during the period. |
(g) | For the six months ended June 30, 2016. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 57 |
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 Global Infrastructure Fund (“Global Infrastructure”), Nuveen Real Asset Income Fund (“Real Asset Income”) and Nuveen Real Estate Securities Fund (“Real Estate Securities”) (each a “Fund” and collectively, the “Funds”), as diversified funds, 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 June 30, 2016 and the period covered by these Notes to Financial Statements is the six months ended June 30, 2016 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser, Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). Nuveen is an operating division of TIAA Global Asset Management. 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 Infrastructure’s investment objective is to seek long-term growth of capital and income. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in equity securities issued by U.S. and non-U.S. infrastructure-related companies. Infrastructure-related companies 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.
Equity securities in which the Fund invests include common and preferred securities, publicly-traded units of master limited partnerships (“MLPs”), and real estate investment trusts (“REITs”). The Fund may also invest in exchange traded funds (“ETFs”) and other investment companies (“investment companies”). The Fund may invest in companies of any size, including small- and mid-capitalization companies.
The Fund’s investments include infrastructure-related securities of non-U.S. issuers. Under normal market conditions, the Fund will invest at least 40% of its net assets in securities of non-U.S. issuers and, in any case, will invest at least 30% of its net assets in such issuers.
The Fund diversifies its investments among a number of different countries throughout the world. Up to 25% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Real Asset Income’s investment objective is to seek a high level of current income. The secondary investment objective of the Fund is to seek capital appreciation. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in securities issued by real asset related companies that are generating income at the time of purchase. Real asset related companies are defined as: (i) companies that are in the energy, telecommunications, utilities or materials sectors; (ii) companies in the real estate or transportation industry groups; (iii) companies, if not in one of these sectors or industries, that (a) derive at least 50% of their revenues or profits from the ownership, management, operation, development, construction, financing, or sale of real assets, or (b) have at least 50% of the fair market value of their assets invested in real assets; or (iv) pooled investment vehicles that primarily invest in the foregoing companies or that are otherwise designed primarily to provide investment exposure to real assets.
The categories of real assets on which the Fund will focus its investments are infrastructure and real estate. Infrastructure consists of the physical structures and networks upon which the operation, growth and development of a community depends, which include water, sewer, and energy utilities; transportation and communication networks; health care facilities, government accommodations, and other public service facilities; and shipping, timber, steel, alternative energy, and other resources and services necessary for the construction and maintenance of these physical structures and networks. In normal market conditions, the Fund will invest at least 25% of its assets, collectively, in securities of issuers in the infrastructure and real estate industries.
The Fund will invest in both equity securities and debt securities, but will not invest more than 40% of its net assets in debt securities. All or a portion of the Fund’s debt securities may be rated lower than investment grade (BB/Ba or lower). Equity securities in which the Fund may invest may be of any market capitalization, including small- and mid-capitalization companies, and include common stock, preferred securities, hybrid securities and
58 | NUVEEN |
convertible securities, as well as interests in REITs, exchange-traded notes (“ETNs”), other investment companies (including ETFs) and equity securities issued by MLPs. Debt securities in which the Fund may invest include corporate debt obligations, mortgage-backed securities (“MBS”) and debt securities issued by MLPs.
The Fund will invest in non-U.S. securities, but will limit its exposure to emerging markets to 50% of its net assets at the time of purchase.
The infrastructure assets that Global Infrastructure and Real Asset Income invest consists of the physical structures and networks upon which the operation, growth and development of a community depends, which include water, sewer, and energy utilities; transportation and communication networks; health care facilities, government accommodations, and other public service facilities; and shipping, timber, steel, alternative energy, and other resources and services necessary for the construction and maintenance of these physical structures and networks.
Real Estate Securities’ investment objective is to provide above average current income and long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in income-producing common stocks of publicly traded companies engaged in the real estate industry. These companies derive at least 50% of their revenues or profits from the ownership, construction, management, financing or sale of real estate, or have at least 50% of the fair market value of their assets invested in real estate.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
Each Fund may utilize derivatives, including options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts. The Funds may use these derivatives to manage market or business risk, enhance the Funds’ return, or hedge against adverse movements in currency exchange rates.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
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:
Real Estate Securities | ||||
Outstanding when-issued/delayed delivery purchase commitments | $ | 36,407,098 |
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. 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 and distributed to shareholders annually for Global Infrastructure and quarterly for Real Estate Securities. Real Asset Income’s dividends from net investment income are declared daily and distributed to shareholders monthly, and 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.
NUVEEN | 59 |
Notes to Financial Statements (Unaudited) (continued)
Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
The tax character of Fund distributions for a fiscal year is dependent upon the amount and tax character of distributions received from securities held in the Funds’ portfolios. Distributions received from certain securities in which the Funds invest, most notably REIT securities, may be characterized for tax purposes as ordinary income, long-term capital gain and/or a return of capital. The issuer of a security reports the tax character of its distributions only once per year, generally during the first two months of the calendar year. The distribution is included in the Funds’ ordinary income until such time the Fund is notified by the issuer of the actual tax character. For the current fiscal period, dividend income, net realized gain (loss) and unrealized appreciation (depreciation) recognized on the Statement of Operations reflect the amounts of ordinary income, capital gain, and/or return of capital as reported by the issuers of such securities as of the last calendar year end.
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 but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen months of purchase. 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 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 Global Infrastructure and Real Estate Securities that are not directly attributable to a specific class of shares are prorated among the classes of each Fund based on the relative net assets of each class. Income and expenses of Real Asset Income 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 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 master repurchase agreements, 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, when applicable, 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.
60 | NUVEEN |
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. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the New York Stock Exchange (“NYSE”), which may represent a transfer from a Level 1 to a Level 2 security.
Prices of fixed-income securities are provided by an independent pricing service (“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 observability of the significant inputs.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price 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 NYSE 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 observability 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,
NUVEEN | 61 |
Notes to Financial Statements (Unaudited) (continued)
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 observability 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 Infrastructure | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 323,558,432 | $ | 281,021,715 | ** | $ | 286,063 | ** | $ | 604,866,210 | ||||||
Real Estate Investment Trust Common Stocks | 15,585,905 | 3,333,302 | ** | — | 18,919,207 | |||||||||||
Investment Companies | 6,694,649 | — | — | 6,694,649 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 3,086,285 | — | 3,086,285 | ||||||||||||
Total | $ | 345,838,986 | $ | 287,441,302 | $ | 286,063 | $ | 633,566,351 | ||||||||
Real Asset Income | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 98,122,705 | $ | 160,985,433 | ** | $ | — | $ | 259,108,138 | |||||||
Real Estate Investment Trust Common Stocks | 149,424,207 | 32,154,469 | ** | — | 181,578,676 | |||||||||||
Convertible Preferred Securities | 58,766,390 | 8,906,985 | ** | — | 67,673,375 | |||||||||||
$25 Par (or similar) Retail Preferred | 203,631,870 | 8,435,561 | ** | — | 212,067,431 | |||||||||||
Corporate Bonds | — | 134,954,106 | — | 134,954,106 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 77,792,650 | — | 77,792,650 | ||||||||||||
Common Stock Rights | 15,287 | — | — | 15,287 | ||||||||||||
Investment Companies | 18,202,063 | — | — | 18,202,063 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 32,817,427 | — | 32,817,427 | ||||||||||||
Total | $ | 528,162,522 | $ | 456,046,631 | $ | — | $ | 984,209,153 | ||||||||
Real Estate Securities | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 31,100,763 | $ | — | $ | — | $ | 31,100,763 | ||||||||
Real Estate Investment Trust Common Stocks | 4,888,728,997 | 17,030,627 | ** | — | 4,905,759,624 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 579,847,233 | — | — | 579,847,233 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 199,189,077 | — | — | 199,189,077 | ||||||||||||
Total | $ | 5,698,866,070 | $ | 17,030,627 | $ | — | $ | 5,715,896,697 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and/or Level 3, where applicable. |
The table below presents the transfers in and out of the three valuation levels for the following Funds as of the end of the reporting period when compared to the valuation levels as of the end of the previous fiscal year. Changes in valuation inputs or methodologies may result in transfers into or out of an assigned level within the fair value hierarchy. Transfers in or out of levels are generally due to the availability of publicly available information and to the significance or extent the Adviser determines that the valuation inputs or methodologies may impact the valuation of those securities.
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Transfer In | (Transfers Out) | Transfer In | (Transfers Out) | Transfer In | (Transfers Out) | |||||||||||||||||||||||||||
Global Infrastructure | ||||||||||||||||||||||||||||||||
Common Stocks | $ | 1,741,242 | $ | (4,923,154 | ) | $ | 4,923,154 | $ | (2,027,305 | ) | $ | 286,063 | $ | — | ||||||||||||||||||
Real Asset Income | ||||||||||||||||||||||||||||||||
Common Stocks | $ | 2,289,571 | $ | (7,524,806 | ) | $ | 7,524,806 | $ | (2,289,571 | ) | $ | — | $ | — | ||||||||||||||||||
$25 Par (or similar) Retail Preferred | 1,843,713 | — | — | (1,843,713 | ) | — | — |
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
62 | NUVEEN |
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.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
To the extent that the Funds may 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.
NUVEEN | 63 |
Notes to Financial Statements (Unaudited) (continued)
As of the end of the reporting period, the following Funds’ investments in non-U.S. securities were as follows:
Global Infrastructure | Value | % of Net Assets | ||||||
Country: | ||||||||
Canada | $ | 67,841,121 | 10.6 | % | ||||
Australia | 61,395,263 | 9.6 | ||||||
Italy | 53,063,523 | 8.3 | ||||||
France | 41,600,432 | 6.5 | ||||||
United Kingdom | 22,249,754 | 3.5 | ||||||
Japan | 18,673,832 | 2.9 | ||||||
Hong Kong | 18,438,976 | 2.9 | ||||||
New Zealand | 18,361,564 | 2.9 | ||||||
Spain | 18,149,407 | 2.8 | ||||||
Singapore | 11,862,197 | 1.8 | ||||||
Other | 62,044,922 | 9.7 | ||||||
Total non-U.S. securities | $ | 393,680,991 | 61.5 | % | ||||
Real Asset Income | ||||||||
Country: | ||||||||
Canada | $ | 92,258,176 | 9.2 | % | ||||
Australia | 61,142,016 | 6.1 | ||||||
United Kingdom | 49,635,826 | 5.0 | ||||||
Singapore | 42,001,050 | 4.2 | ||||||
Italy | 26,023,536 | 2.6 | ||||||
Hong Kong | 22,992,622 | 2.3 | ||||||
New Zealand | 14,989,587 | 1.5 | ||||||
Mexico | 14,405,161 | 1.4 | ||||||
Belgium | 14,355,055 | 1.4 | ||||||
Portugal | 13,544,217 | 1.4 | ||||||
Other | 52,852,043 | 5.3 | ||||||
Total non-U.S. securities | $ | 404,199,289 | 40.4 | % |
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) foreign currency, (ii) investments, (iii) investments in derivatives and (iv) other assets less 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 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.
Securities Lending
In order to generate additional income, Real Estate Securities may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Fund also has the ability to recall the securities on loan at any time.
The 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.
64 | NUVEEN |
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 Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the 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 Fund bears the risk of loss with respect to the investment of collateral.
The Fund’s custodian, U.S. Bank National Association, serves as its securities lending agent. The 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 Fund 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) | Net Exposure | ||||||||||
Real Estate Securities | Common Stocks | $ | 864,063 | $ | (864,063 | ) | $ | — | ||||||
Real Estate Investment Trust Common Stocks | 572,018,995 | (572,018,995 | ) | — | ||||||||||
Total | $ | 572,883,058 | $ | (572,883,058 | ) | $ | — |
* | 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 the Fund during the current fiscal period were as follows:
Real Estate Securities | ||||
Securities lending fees paid | $ | 32,441 |
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) | Net Exposure | ||||||||||
Global Infrastructure | Fixed Income Clearing Corporation | $ | 3,086,285 | $ | (3,086,285 | ) | $ | — | ||||||
Real Asset Income | Fixed Income Clearing Corporation | 32,817,427 | (32,817,427 | ) | — |
* | 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. |
Investment in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Futures Contracts
Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “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.
NUVEEN | 65 |
Notes to Financial Statements (Unaudited) (continued)
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, Real Asset Income shorted short-term U.S. Treasury futures contracts to hedge against potential increases in interest rates.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Real Asset Income | ||||
Average notional amount of futures contracts outstanding* | $ | 4,062,331 |
* | 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 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 | ||||||||
Real Asset Income | Interest rate | Futures contracts | $ | (180,784 | ) | $ | (29,714 | ) |
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.
66 | NUVEEN |
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 6/30/16 | Year Ended 12/31/15 | |||||||||||||||
Global Infrastructure(1) | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,384,240 | $ | 24,493,931 | 11,381,988 | $ | 121,955,119 | ||||||||||
Class C | 113,382 | 1,140,815 | 344,437 | 3,639,411 | ||||||||||||
Class R3 | 10,380 | 108,704 | 45,632 | 502,702 | ||||||||||||
Class R6 – exchanges | 737,190 | 8,153,326 | — | — | ||||||||||||
Class I | 3,916,895 | 39,770,937 | 8,805,918 | 93,374,990 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | — | — | 872,940 | 8,576,645 | ||||||||||||
Class C | — | — | 47,564 | 463,434 | ||||||||||||
Class R3 | — | — | 1,720 | 17,151 | ||||||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | — | — | 594,217 | 5,831,766 | ||||||||||||
7,162,087 | 73,667,713 | 22,094,416 | 234,361,218 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (7,911,175 | ) | (80,691,718 | ) | (7,686,739 | ) | (80,679,300 | ) | ||||||||
Class C | (240,843 | ) | (2,432,958 | ) | (406,289 | ) | (4,237,762 | ) | ||||||||
Class R3 | (7,062 | ) | (70,012 | ) | (22,478 | ) | (232,692 | ) | ||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | (5,145,499 | ) | (50,903,845 | ) | — | — | ||||||||||
Class I – exchanges | (737,190 | ) | (8,153,326 | ) | (11,271,460 | ) | (116,822,070 | ) | ||||||||
(14,041,769 | ) | (142,251,859 | ) | (19,386,966 | ) | (201,971,824 | ) | |||||||||
Net increase (decrease) | (6,879,682 | ) | $ | (68,584,146 | ) | 2,707,450 | $ | 32,389,394 |
(1) | Class R6 Shares were established on June 30, 2016. |
Six Months Ended 6/30/16 | Year Ended 12/31/15 | |||||||||||||||
Real Asset Income(1) | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,070,209 | $ | 46,542,442 | 5,272,222 | $ | 123,886,629 | ||||||||||
Class C | 1,174,230 | 26,472,031 | 3,878,785 | 91,353,945 | ||||||||||||
Class R6 – exchanges | 309,038 | 7,259,298 | — | — | ||||||||||||
Class I | 6,057,546 | 135,349,519 | 19,037,472 | 446,842,749 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 192,975 | 4,321,825 | 328,376 | 7,551,536 | ||||||||||||
Class C | 125,502 | 2,810,774 | 195,526 | 4,479,582 | ||||||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | 662,250 | 14,821,101 | 1,154,504 | 26,504,177 | ||||||||||||
10,591,750 | 237,576,990 | 29,866,885 | 700,618,618 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,282,491 | ) | (28,395,831 | ) | (3,086,962 | ) | (71,146,379 | ) | ||||||||
Class C | (725,494 | ) | (15,990,920 | ) | (937,896 | ) | (21,301,185 | ) | ||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | (4,290,468 | ) | (94,066,599 | ) | — | — | ||||||||||
Class I – exchanges | (309,038 | ) | (7,259,298 | ) | (9,353,174 | ) | (212,143,589 | ) | ||||||||
(6,607,491 | ) | (145,712,648 | ) | (13,378,032 | ) | (304,591,153 | ) | |||||||||
Net increase (decrease) | 3,984,259 | $ | 91,864,342 | 16,488,853 | $ | 396,027,465 |
(1) | Class R6 Shares were established on June 30, 2016. |
NUVEEN | 67 |
Notes to Financial Statements (Unaudited) (continued)
Six Months Ended 6/30/16 | Year Ended 12/31/15 | |||||||||||||||
Real Estate Securities | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 5,315,337 | $ | 122,262,528 | 8,620,827 | $ | 204,358,264 | ||||||||||
Class C | 265,819 | 5,990,891 | 831,972 | 19,368,102 | ||||||||||||
Class R3 | 301,519 | 6,973,434 | 733,362 | 17,824,626 | ||||||||||||
Class R6 | 2,900,648 | 64,742,968 | 4,926,904 | 118,108,108 | ||||||||||||
Class I | 19,350,975 | 448,143,250 | 37,828,506 | 913,213,184 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 383,887 | 9,295,208 | 2,392,067 | 53,613,825 | ||||||||||||
Class C | 27,453 | 648,411 | 217,152 | 4,733,847 | ||||||||||||
Class R3 | 27,486 | 675,515 | 195,095 | 4,434,742 | ||||||||||||
Class R6 | 145,178 | 3,588,336 | 732,046 | 16,721,757 | ||||||||||||
Class I | 1,535,543 | 37,707,545 | 9,465,568 | 215,255,484 | ||||||||||||
30,253,845 | 700,028,086 | 65,943,499 | 1,567,631,939 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (5,976,175 | ) | (137,560,339 | ) | (12,128,454 | ) | (284,548,904 | ) | ||||||||
Class C | (371,730 | ) | (8,261,097 | ) | (742,706 | ) | (16,958,483 | ) | ||||||||
Class R3 | (454,932 | ) | (10,478,899 | ) | (1,273,580 | ) | (30,252,586 | ) | ||||||||
Class R6 | (2,068,359 | ) | (47,944,134 | ) | (4,983,264 | ) | (119,883,685 | ) | ||||||||
Class I | (23,949,016 | ) | (552,121,729 | ) | (57,178,857 | ) | (1,357,879,708 | ) | ||||||||
(32,820,212 | ) | (756,366,198 | ) | (76,306,861 | ) | (1,809,523,366 | ) | |||||||||
Net increase (decrease) | (2,566,367 | ) | $ | (56,338,112) | (10,363,362 | ) | $ | (241,891,427 | ) |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions, where applicable) during the current fiscal period were as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Purchases | $ | 455,359,416 | $ | 506,919,692 | $ | 3,239,486,656 | ||||||
Sales and maturities | 522,837,440 | 444,162,990 | 3,337,830,210 |
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.
68 | NUVEEN |
As of June 30, 2016, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Cost of investments | $ | 549,516,766 | $ | 945,198,624 | $ | 4,264,006,156 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 104,361,456 | $ | 66,731,274 | $ | 1,542,008,141 | ||||||
Depreciation | (20,311,871 | ) | (27,720,745 | ) | (90,117,600 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 84,049,585 | $ | 39,010,529 | $ | 1,451,890,541 |
Permanent differences, primarily due to the federal taxes paid, REIT adjustments, investments in partnerships, foreign currency transactions, investments in passive foreign investment companies and complex securities character adjustments, resulted in reclassifications among the Funds’ components of net assets as of December 31, 2015, the Funds’ last tax year end, as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Capital paid-in | $ | 20,258 | $ | (17,263 | ) | $ | (11 | ) | ||||
Undistributed (Over-distribution of) net investment income | (38,264 | ) | (859,515 | ) | 2,567,846 | |||||||
Accumulated net realized gain (loss) | 18,006 | 876,778 | (2,567,835 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2015, the Funds’ last tax year end, were as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Undistributed net ordinary income1 | $ | 324,034 | $ | — | $ | 5,209,230 | ||||||
Undistributed net long-term capital gains | 392,772 | — | 81,527,098 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended December 31, 2015, was designated for purposes of the dividends paid deduction as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Distributions from net ordinary income1 | $ | 15,816,112 | $ | 37,144,462 | $ | 138,807,910 | ||||||
Distributions from net long-term capital gains | 4,225,763 | 451,293 | 245,536,755 | |||||||||
Return of capital | — | 3,498,940 | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
As of December 31, 2015, the Funds’ last tax year end, the following Fund had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
Real Asset Income | ||||
Capital losses to be carried forward – not subject to expiration | $ | 12,500,359 |
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 Infrastructure | Real Asset Income | |||||||
Post-October capital losses2 | $ | 5,044,319 | $ | 12,736,337 | ||||
Late-year ordinary losses3 | — | 68,919 |
2 | Capital losses incurred from November 1, 2015 through December 31, 2015, the Funds’ last tax year end. |
3 | Specified losses incurred from November 1, 2015 through December 31, 2015. |
7. Management Fees and Other Transactions with Affiliates
Management Fees
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.
NUVEEN | 69 |
Notes to Financial Statements (Unaudited) (continued)
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 Infrastructure | Real Asset Income | Real Estate Securities | |||||||||
For the first $125 million | 0.7500 | % | 0.6000 | % | 0.7000 | % | ||||||
For the next $125 million | 0.7375 | 0.5875 | 0.6875 | |||||||||
For the next $250 million | 0.7250 | 0.5750 | 0.6750 | |||||||||
For the next $500 million | 0.7125 | 0.5625 | 0.6625 | |||||||||
For the next $1 billion | 0.7000 | 0.5500 | 0.6500 | |||||||||
For net assets over $2 billion | 0.6750 | 0.5250 | 0.6250 |
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 (except for Real Asset 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 a determined amount (originally $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 June 30, 2016, the complex-level fee for each Fund was as follows: |
Fund | Complex-Level Fee | |||
Global Infrastructure | 0.1702 | % | ||
Real Asset Income | 0.1614 | |||
Real Estate Securities | 0.1790 |
The Adviser has agreed to waive fees and/or reimburse expenses of Global Infrastructure and Real Asset Income through September 30, 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 1.00% and 0.95% of the average daily net assets of any class of Fund shares, respectively.
Other Transactions with Affiliates
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.
70 | NUVEEN |
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 Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Sales charges collected | $ | 44,013 | $ | 422,669 | $ | 111,422 | ||||||
Paid to financial intermediaries | 38,594 | 572,532 | 99,326 |
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:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
Commission advances | $ | 8,599 | $ | 249,702 | $ | 66,859 |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class B Shares and C Shares during the first year following a purchase were retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
Global Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
12b-1 fees retained | $ | 10,778 | $ | 291,865 | $ | 53,711 |
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 Infrastructure | Real Asset Income | Real Estate Securities | ||||||||||
CDSC retained | $ | 1,191 | $ | 28,531 | $ | 2,805 |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Fund participated in an unsecured bank line of credit (“Unsecured Credit Line”) under which outstanding balances would bear interest at a variable rate. Although the Funds participated in the Unsecured Credit Line, they did not have any outstanding balances during the current fiscal period.
Committed Line of Credit
The Fund, along with certain other funds managed by the Adviser (“Participating Funds”), has established a 364-day, approximately $2.5 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 the Fund 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 the Fund covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 2017 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.
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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 One North Wacker Drive Chicago, IL 60606
Custodians State Street Bank & Trust One Lincoln Street Boston, MA 02111
U.S. Bank National Association* 1555 North RiverCenter Drive Suite 302 Milwaukee, WI 53202 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Transfer Agent and Boston Financial Data Services, Inc. Nuveen Investor Services P.O. Box 8530 Boston, MA 02266-8530 (800) 257-8787 | |||||||
* For Nuveen Real Estate Securities Fund. |
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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.FlNRA.org. |
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Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Barclays U.S. Corporate High Yield Bond Index: An index that covers the universe of fixed-rate, non-investment-grade corporate debt of issuers in non-emerging market countries. Eurobonds and debt issues from countries designated as emerging markets are excluded. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
BofA/Merrill Lynch Preferred Fixed Rate Index: An index that consists of fixed rate U.S. dollar denominated preferred securities and fixed-to-floating rate securities that are callable prior to the floating rate period and are at least one year from the start of the floating rate period. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
BofA/Merrill Lynch REIT Preferred Index: An unmanaged index of investment grade Real Estate Investment Trust (REIT) preferred shares with a deal size in excess of $100 million, weighted by capitalization and considered representative of investment grade preferred real estate stock performance. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Lipper Global Flexible Portfolio Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Flexible Portfolio Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Real Estate Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Real Estate Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Global Infrastructure Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global Infrastructure Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
MSCI (Morgan Stanley Capital International) All Country World Index (ACWI): A free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
MSCI U.S. REIT Index: An unmanaged index that tracks the performance of real estate investment trusts (REITs). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Real Asset Income Blend (Old Comparative Benchmark): A five index blend comprised of weightings approximating the Fund’s proposed portfolio. The Fund’s proposed portfolio may differ significantly from the blended portfolio and actual returns may be substantially lower. Benchmark returns do not include the effects of any sales charges or management fees.
NUVEEN | 73 |
Glossary of Terms Used in this Report (continued)
Weighting Percentage | Index | Definition | ||
33% | S&P Global Infrastructure Index | An unmanaged index comprised of 75 of the largest publicly listed infrastructure companies that meet specific investability requirements. | ||
20% | BofA/Merrill Lynch REIT Preferred Index | An unmanaged index of investment grade REIT preferred shares with a deal size in excess of $100 million, weighted by capitalization and considered representative of investment grade preferred real estate stock performance. | ||
20% | Barclays U.S. Corporate High Yield Bond Index | An unmanaged index that covers the universe of domestic fixed-rate non-investment grade debt. | ||
15% | MSCI U.S. RElT Index | A free float-adjusted market capitalization weighted index that is comprised of equity REITs that are included in the MSCI U.S. Investable Market 2500 Index, with the exception of specialty equity RElTs that do not generate a majority of their revenue and income from real estate rental and leasing operations. This index represents approximately 85% of the U.S. REIT universe. | ||
12% | BofA/Merrill Lynch Fixed Rate Preferred Securities Index | Tracks the performance of fixed-rate U.S. dollar denominated preferred securities issued in the U.S. domestic market. Qualifying securities must be rated investment-grade (based on an average of Moody’s, S&P and Fitch) and must have an investment grade rated country of risk (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings). |
Real Asset Income Blend (New Comparative Benchmark): A five index blend comprised of weightings approximating the Fund’s proposed portfolio. The Fund’s proposed portfolio may differ significantly from the blended portfolio and actual returns may be substantially lower. Benchmark returns do not include the effects of any sales charges or management fees.
Weighting Percentage | Index | Definition | ||
28% | S&P Global Infrastructure Index | An unmanaged index comprised of 75 of the largest publicly listed infrastructure companies that meet specific investability requirements. | ||
21% | Financial Times Stock Exchange - European Public Real Estate Association/National Association of Real Estate Investments Trust (FTSE EPRA/NAREIT) Developed Index | An index designed to track the performance of listed real estate companies and REITs worldwide. | ||
18% | Wells Fargo Hybrid & Preferred Securities REIT Index | An Index designed to track the performance of preferred securities issued in the U.S. market by real estate investment trusts (REITs). The index is composed exclusively of preferred shares and depositary shares. | ||
18% | 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. | ||
15% | Barclays Global Capital Securities Index | An index that tracks fixed-rate, investment grade capital securities denominated in USD, EUR and GBP. |
S&P Global Infrastructure Index: An index that provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: utilities, transportation, and energy. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Annual Investment Management Agreement
Approval Process (Unaudited)
The Board of Directors of each Fund (the “Board,” and each Director a “Board Member”), including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for overseeing the performance of the investment adviser and sub-adviser to the respective Fund and determining whether to continue such Fund’s advisory agreement (the “Investment Management Agreement”) between the Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreement (the “Sub-Advisory Agreement” and, together with the Investment Management Agreement, the “Advisory Agreements”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”). Following an initial term with respect to each Fund upon its commencement of operations, the Board reviews the Investment Management Agreement and the Sub-Advisory Agreement on behalf of such Fund and votes to determine whether the respective Advisory Agreement should be renewed. Accordingly, at an in-person meeting held on May 24-26, 2016 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the existing Advisory Agreements for the Funds.
During the year, the Board and its Committees met regularly to receive materials and discuss a variety of topics impacting the Funds including, among other things, overall market conditions and market performance, Fund investment performance, brokerage execution, valuation of securities, Rule 12b-1 plans and payments, sub-transfer agency and other payments to financial intermediaries, compliance matters, securities lending, risk management and ongoing initiatives. The Board had established several standing Committees, including the Open-end Fund Committee and Closed-end Fund Committee which permit the Board Members to delve further into the topics particularly relevant to the respective product line and enhance the Board’s effectiveness and oversight of the Funds. The Board also seeks to meet with the Sub-Adviser and its investment team at least once over a multiple year rotation through site visits. The information and knowledge the Board gained throughout the year from the Board and Committee meetings, site visits and the related materials were relevant to the Board’s evaluation of the Advisory Agreements, and the Board took such information into account in its review of the Advisory Agreements.
In addition to the materials received throughout the year, the Board received additional materials prepared specifically for its annual review of the Advisory Agreements in response to a request by independent legal counsel on behalf of the Independent Board Members. The materials addressed a variety of topics, including a description of the services provided by the Adviser and the Sub-Adviser (each, a “Fund Adviser”); a review of fund performance with a detailed focus on any performance outliers; an analysis of the investment teams; an analysis of the fees and expense ratios of the Funds, including information comparing such fees and expenses to that of peer groups; an assessment of shareholder services for the Funds and of the performance of certain service providers; a review of initiatives instituted or continued during the past year; and information regarding the profitability of the Fund Advisers, the compensation of portfolio managers, and compliance and risk matters.
As part of its annual review, the Board held a separate meeting on April 12-13, 2016 to review the Funds’ investment performance and consider an analysis by the Adviser of the Sub-Adviser examining, among other things, the team’s assets under management, investment performance, investment approach, and the stability and structure of the Sub-Adviser’s organization and investment team. During the review, the Independent Board Members requested and received additional information from management. Throughout the year and throughout their review of the Advisory Agreements, the Independent Board Members were assisted by independent legal counsel. The Independent Board Members met separately with independent legal counsel without management present and received a memorandum from such counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Independent Board Members’ review of the Advisory Agreements reflected an ongoing process that incorporated the information and considerations that occurred over the years, including the most recent year, as well as the information specifically furnished for the renewal process. In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor as controlling, but rather the decision reflected the comprehensive consideration of all the information presented. The following summarizes the principal factors, but not all the factors, the Board considered in its review of the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund and the initiatives undertaken during the past year by the Adviser. The Board recognized the comprehensive set of services the Adviser provided to manage and operate the Nuveen funds, including (a) product management (such as setting dividends, positioning the product in the marketplace, managing the relationships with the distribution platforms, maintaining and enhancing shareholder communications and reporting to the Board); (b) investment services (such as overseeing sub-advisers and other service providers; analyzing investment performance and risks; overseeing risk management and disclosure; developing and interpreting investment policies; assisting in the development of products; helping to prepare financial statements and marketing disclosures; and overseeing trade execution); (c) fund administration (such as helping to prepare fund tax returns and complete other tax compliance matters; and helping to prepare regulatory filings and shareholder reports); (d) fund Board administration (such as preparing Board materials and organizing and providing assistance
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
for Board meetings); (e) compliance (such as helping to devise and maintain the funds’ compliance program and related testing); and (f) legal support (such as helping to prepare registration statements and proxy statements, interpreting regulations and policies and overseeing fund activities).
The Board reviewed the continued investment the Adviser had made in its business to continue to strengthen the breadth and quality of its services to the benefit of the Nuveen funds. The Board noted the Adviser’s additional staffing in key areas that support the funds and the Board, including in investment services, operations, fund governance, compliance, fund administration, product management, retail distribution and information technology. Among the enhancements to its services, the Board recognized the Adviser’s (a) expanded activities and support required as a result of regulatory developments, including in areas of compliance and reporting; (b) increased support for dividend management; (c) continued investment in its technical capabilities as the Adviser continued to build out a centralized fund data platform, enhance mobility and remote access capabilities, rationalize and upgrade software platforms, and automate certain regulatory liquidity determinations; (d) continued efforts to rationalize the product line through mergers, liquidations and re-positioning of the Nuveen funds with the goal of increasing efficiencies, reducing costs, improving performance and addressing shareholder needs; (e) continued efforts to develop new lines of business designed to enhance the Nuveen product line and meet investor demands; and (f) continued commitment to enhance risk oversight, including the formation of the operational risk group to provide operational risk assessment, the access to platforms which provide better risk reporting to support investment teams, and the development of a new team to initially review new products and major product initiatives. The Board also recognized the Adviser’s efforts to renegotiate certain fees of other service providers which culminated in reduced expenses for all funds for custody and accounting services without diminishing the breadth and quality of the services provided. The Board considered the Chief Compliance Officer’s report regarding the Adviser’s compliance program, the Adviser’s continued development, execution and management of its compliance program, and the additions to the compliance team to support the continued growth of the Nuveen fund family and address regulatory developments.
The Board also considered information highlighting the various initiatives that the Adviser had implemented or continued during the year to enhance or support the open-end fund product line. The Board noted the Adviser’s continued initiatives (a) to develop and offer new outcome-oriented funds; (b) to refine the reports to the Board, including enhanced reporting regarding payments to intermediaries, as well as provide presentations to the Board to keep it apprised of various topics that are relevant to the open-end fund product line (such as marketing initiatives, portfolio analytics and sales results); (c) to modify the contingent deferred sales load structure for Class A shares to be more competitive with peers; (d) to launch a new share class to attract institutional clients; and (e) to change portfolio managers on various funds. The Board recognized that initiatives that attract assets to the Nuveen family of funds benefited the funds as fixed costs would be spread over a larger asset base and, as described below, through the complex-wide arrangement which generally would provide that the management fees of the funds (subject to limited exceptions) are reduced as asset levels for the complex increase. The Board also considered the Adviser’s review of the pricing on its entire open-end fund line which resulted in either a reduction in the contractual management fee, a reduction in a temporary expense cap or a combination thereof for numerous funds in the complex helping to better position such funds for future growth.
As noted, the Adviser also oversees the Sub-Adviser who primarily provides the portfolio advisory services to the Funds. The Board recognized the skill and competency of the Adviser in monitoring and analyzing the performance of the Sub-Adviser and managing the sub-advisory relationship. The Board noted that the Adviser recommended the renewal of each Sub-Advisory Agreement.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board considered the long-term and short-term performance history of the Nuveen funds. As noted above, the Board reviewed fund performance at its quarterly meetings throughout the year and took into account the information derived from the discussions with representatives of the Adviser about fund performance at these meetings. The Board also considered the Adviser’s analysis of fund performance with particular focus on any performance outliers and the factors contributing to such performance and any steps the investment team had taken to address performance concerns. The Board reviewed, among other things, each Fund’s investment performance both on an absolute basis and in comparison to peer funds (the “Performance Peer Group”) and to recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2015 (or for such shorter periods available for Nuveen Real Asset Income Fund (the “Real Asset Fund”), which did not exist for part of the foregoing time frame, as well as performance information reflecting the first quarter of 2016.
In evaluating performance information, the Board recognized the following factors may impact the performance data as well as the consideration to be given to particular performance data:
• | The performance data reflected a snapshot in time, in this case as of the end of the most recent calendar year or quarter. A different performance period, however, could generate significantly different results. |
• | Long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme had the ability to disproportionately affect long-term performance. |
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• | Shareholders evaluate performance based on their own holding period which may differ from the performance period reviewed by the Board, leading to different performance results. |
• | Open-end funds offered multiple classes and the performance data provided for open-end funds was based on Class A shares. The performance of the other classes of a fund, however, should be substantially similar on a relative basis because all of the classes would be invested in the same portfolio of securities and differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. |
• | The Board recognized the difficulty in establishing appropriate peer groups and benchmarks for certain funds, including the Real Asset Fund. The Board noted that management classified the Performance Peer Groups as low, medium and high in relevancy and took the relevancy of the Performance Peer Group into account when considering the comparative performance data. If the Performance Peer Group differed somewhat from a fund, the Board recognized that the comparative performance data may be of limited value. The Board also recognized that each fund operated pursuant to its own investment objective(s), parameters and restrictions which may differ from that of the Performance Peer Group or benchmark and that these variations lead to differences in performance results. |
With respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken. The Board was aware, however, that shareholders chose to invest or remain invested in a fund knowing that the Adviser and the applicable sub-adviser manage the fund, knowing the fund’s investment strategy and seeking exposure to that strategy (even if the strategy was “out of favor” in the marketplace) and knowing the fund’s fee structure.
For Nuveen Global Infrastructure Fund (the “Infrastructure Fund”), the Board noted that the Fund ranked in its Performance Peer Group in the second quartile in the five-year period and the first quartile in the one- and three-year periods and outperformed its benchmark in the one-, three- and five-year periods. The Board determined that the Fund’s performance had been favorable.
For the Real Asset Fund, the Board noted that the Fund ranked in its Performance Peer Group in the first quartile in the three-year period and second quartile in the one-year period. Although the Fund underperformed its blended benchmark in the one-year period, the Fund outperformed its recognized benchmark and blended benchmark in the three-year period and its recognized benchmark in the one-year period. The Board determined that the Fund’s performance had been satisfactory.
For Nuveen Real Estate Securities Fund (the “Real Estate Fund”), the Board noted that the Fund ranked in its Performance Peer Group in the second quartile in the one-, three- and five-year periods and, although the Fund underperformed its benchmark in the three- and five-year periods, the Fund outperformed its benchmark in the one-year period. The Board determined that the Fund’s performance had been favorable.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and other fees and expenses of each Fund. The Board reviewed, among other things, the gross and net management fees and net total expenses of each Fund (expressed as a percentage of average net assets) in absolute terms and also in comparison to the fee and expense levels of a comparable universe of funds (the “Peer Universe”) and to a more focused subset in the Peer Universe (the “Peer Group”), each selected by an independent third-party fund data provider. The Independent Board Members also reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group.
In their evaluation of the management fee schedule, the Independent Board Members considered the fund-level and complex-wide breakpoint schedules, as described in further detail below. The Independent Board Members also took into account any fee waivers and/or expense reimbursements provided by Nuveen. In this regard, as noted above, the Board considered that management recently completed a review of the pricing of its open-end funds which resulted in the reduction of management fees and/or expense caps of various open-end funds. The Independent Board Members considered that the foregoing changes were estimated to result in significant savings to such funds either through a reduction in advisory fees paid or an increase in the fee waivers absorbed by Nuveen.
In reviewing the comparative fee and expense information, the Independent Board Members recognized that various factors such as the limited size and particular composition of the Peer Universe or Peer Group (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement or fee waivers; the timing of information used; and differences in services provided can impact the usefulness of the comparative data in helping to assess the appropriateness of a fund’s fees and expenses. In addition, in reviewing a fund’s fees and expenses compared to the fees and expenses of its peers, the Board generally considered the fund’s expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group. The Board reviewed the net expense ratio in recognition that the net expense ratio generally best represented the net experience of the shareholders of a fund as it directly reflected the costs of investing in the respective fund. The Board noted that the majority of
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
the Nuveen funds had a net expense ratio near or below the average of the respective peers. For funds with a net expense ratio of 6 basis points or higher than their respective peer average, the Independent Board Members reviewed the reasons for the outlier status and were satisfied with the explanation for the difference or with any steps taken to address the difference.
The Board noted that the Infrastructure Fund had a net management fee and a net expense ratio below the respective peer average, and the Real Asset Fund and the Real Estate Fund each had a net management fee slightly higher than its peer average but a net expense ratio in line with its peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board also reviewed information regarding the fee rates for other types of clients advised or sub-advised by the respective Fund Adviser. For the Adviser and/or its affiliated sub-advisers, such other clients may include: separately managed accounts (such as retail, institutional or wrap accounts), hedge funds, other investment companies that are not offered by Nuveen but are sub-advised by one of Nuveen’s affiliated sub-advisers, foreign investment companies offered by Nuveen, and collective investment trusts.
The Board recognized that each Fund had an affiliated sub-adviser. With respect to affiliated sub-advisers, including the Sub-Adviser, the Board reviewed, among other things, the range of advisory fee rates and average fee rate assessed for the different types of clients. The Board reviewed information regarding the different types of services provided to the Funds compared to that provided to these other clients which typically did not require the same breadth of day-to-day services required for registered funds. The Board further considered information regarding the differences in, among other things, the distribution systems, investment policies, investor profiles, and account sizes between the Nuveen funds and the other types of clients. In addition, the Independent Board Members also recognized that the management fee rates of the foreign funds advised by the Adviser may also vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. The Independent Board Members recognized that the foregoing variations resulted in different economics among the product structures and culminated in varying management fees among the types of clients and funds.
The Board also was aware that, since the Funds had a sub-adviser, each Fund’s management fee reflected two components, the fee retained by the Adviser for its services and the fee the Adviser paid to the Sub-Adviser. The Board noted that many of the administrative services provided to support the Funds by the Adviser may not be required to the same extent or at all for the institutional clients or other clients. In general, the Board noted that higher fee levels reflected higher levels of service provided by the Fund Adviser, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of the foregoing. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members concluded such facts justify the different levels of fees.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities on an absolute basis and in comparison to other investment advisers. The Independent Board Members reviewed, among other things, Nuveen’s adjusted operating margins, the gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax) of Nuveen for each of the last two calendar years. The Independent Board Members reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2015. The Independent Board Members also noted that the sub-advisory fees for the Funds are paid by the Adviser, however, the Board recognized that the Sub-Adviser is affiliated with Nuveen. In their review, the Independent Board Members recognized that profitability data is rather subjective as various allocation methodologies may be reasonable to employ but yet yield different results. The Board also reviewed the results of certain alternative methodologies. The Board considered the allocation methodology employed to prepare the profitability data as well as a summary of the refinements to the methodology that had been adopted over the years which may limit some of the comparability of Nuveen’s revenue margins over time. Two Independent Board Members also served as point persons for the Board throughout the year to review and discuss the methodology employed to develop the profitability analysis and any proposed changes thereto and to keep the Board apprised of such changes during the year. In reviewing the profitability data, the Independent Board Members noted that Nuveen’s operating margin as well as its margins for its advisory activities to the Nuveen funds for 2015 were consistent with such margins for 2014.
The Board also considered Nuveen’s adjusted operating margins compared to that of other comparable investment advisers (based on asset size and composition) with publicly available data. The Independent Board Members recognized, however, the limitations of the comparative data as the other advisers may have a different business mix, employ different allocation methodologies, have different capital structure and costs, may not be representative of the industry or other factors that limit the comparability of the profitability information. Nevertheless, the Independent Board Members noted that Nuveen’s adjusted operating margins appeared comparable to the adjusted margins of the peers.
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Further, as the Adviser is a wholly-owned subsidiary of Nuveen which in turn is an operating division of TIAA Global Asset Management, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA-CREF”), the Board reviewed a balance sheet for TIAA-CREF reflecting its assets, liabilities and capital and contingency reserves for the last two calendar years to have a better understanding of the financial stability and strength of the TIAA-CREF complex, together with Nuveen.
Based on the information provided, the Independent Board Members noted that the Adviser appeared to be sufficiently profitable to operate as a viable investment management firm and to honor its obligations as a sponsor of the Nuveen funds.
With respect to the Sub-Adviser, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. The Independent Board Members reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2015. The Independent Board Members also reviewed profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser for the calendar year ending December 31, 2015.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates received or were expected to receive that were directly attributable to the management of a Fund. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds.
Based on their review, the Independent Board Members determined that the Adviser’s and the Sub-Adviser’s levels of profitability were reasonable in light of the respective services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Independent Board Members recognized that as the assets of a particular fund or the Nuveen complex in the aggregate increase over time, economies of scale may be realized with respect to the management of the funds, and the Independent Board Members considered the extent to which these economies are shared with the funds and their shareholders. Although the Independent Board Members recognized that economies of scale are difficult to measure with precision, the Board noted that there were several acceptable means to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waiver and expense limitation agreements and the Adviser’s investment in its business which can enhance the services provided to the funds. With respect to breakpoints, the Independent Board Members noted that subject to certain exceptions, the funds in the Nuveen complex, including the Funds, pay a management fee to the Adviser which is generally comprised of a fund-level component and complex-level component. The fund-level fee component declines as the assets of the particular fund grow and the complex-level fee component declines when eligible assets of all the funds in the Nuveen complex combined grow. The complex-wide fee arrangement was designed to capture economies of scale achieved when total fund complex assets increase, even if the assets of a particular fund are unchanged or decrease. The approach reflected the notion that some of Nuveen’s costs were attributable to services provided to all its funds in the complex, and therefore all funds should benefit if these costs were spread over a larger asset base.
The Independent Board Members reviewed the breakpoint and complex-wide schedules and any savings achieved from expense caps (as applicable), fund-level breakpoints and complex-wide fee reductions for the 2015 calendar year for the funds. In this regard, the Independent Board Members noted that additional economies of scale were shared with shareholders of the Infrastructure Fund and the Real Asset Fund through their temporary expense caps.
In addition, the Independent Board Members recognized the Adviser’s ongoing investment in its business to expand or enhance the services provided to the Nuveen funds. The Independent Board Members noted, among other things, the additions to groups who play a key role in supporting the funds including in fund administration, operations, fund governance, investment services, compliance, product management, retail distribution and technology. The Independent Board Members also recognized the investments in systems necessary to manage the funds including in areas of risk oversight, information technology and compliance.
Based on their review, the Independent Board Members concluded that the current fee structure was acceptable and reflected economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
The Independent Board Members received and considered information regarding other additional benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Funds, including compensation paid to affiliates and research received in connection with brokerage transactions (i.e., soft dollar arrangements). In this regard, the Independent Board Members recognized that an affiliate of the Adviser served as the Funds’ principal underwriter and may receive compensation therefore from, among other things, sales charges, distribution fees and shareholder services fees (which included fees received pursuant to any 12b-1 plan). The Independent Board Members therefore took into account, among other things, the 12b-1 fees retained by Nuveen during the last calendar year.
In addition to the above, the Independent Board Members considered that the Funds’ portfolio transactions are allocated by the Sub-Adviser and the Sub-Adviser may benefit from research received through soft-dollar arrangements. The Board noted, however, that with respect to transactions in fixed
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
income securities, such securities generally trade on a principal basis and do not generate soft dollar credits. Although the Board recognized the Sub-Adviser may benefit from a soft dollar arrangement if it does not have to pay for this research out of its own assets, the Board also recognized that any such research may benefit the Funds to the extent it enhances the ability of the Sub-Adviser to manage the Funds.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
80 | NUVEEN |
Notes
81 | Nuveen Investments |
Notes
82 | NUVEEN |
Notes
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Nuveen: | ||||||||||||||
Serving Investors for Generations | ||||||||||||||
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Since 1898, financial advisors and their clients have relied on Nuveen 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 helps secure the long-term goals of individual investors and the advisors who serve them. As an operating division of TIAA Global Asset Management, Nuveen provides access to investment expertise from leading asset managers and solutions across traditional and alternative asset classes. Built on more than a century of industry leadership, Nuveen’s teams of experts align with clients’ specific financial needs and goals, demonstrating commitment to advisors and investors through market perspectives and wealth management and portfolio advisory services. Nuveen manages more than $239 billion in assets as of June 30, 2016. | ||||||||||||||
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Find out how we can help you. To learn more about how the products and services of Nuveen 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, 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/mf |
MSA-FREGIF-0616D 18680-INV-B-08/17
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: September 7, 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: September 7, 2016
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: September 7, 2016