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)
Kathleen L. Prudhomme
Vice President and Secretary
901 Marquette Avenue Minneapolis, Minnesota 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: October 31
Date of reporting period: April 30, 2017
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
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Mutual Funds |
Nuveen Equity Funds |
| Semi-Annual Report April 30, 2017 |
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Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||||||||
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Nuveen Dividend Value Fund | FFEIX | FFECX | FEISX | FFEFX | FAQIX | |||||||||||
Nuveen Mid Cap Value Fund | FASEX | FACSX | FMVSX | — | FSEIX | |||||||||||
Nuveen Small Cap Value Fund | FSCAX | FSCVX | FSVSX | FSCWX | FSCCX |
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NUVEEN | 3 |
to Shareholders
Dear Shareholders,
Whether politics or the economy will prevail over the financial markets this year has been a much-analyzed question. After the U.S. presidential election, stocks rallied to new all-time highs, bonds tumbled, and business and consumer sentiment grew pointedly optimistic. But, to what extent the White House can translate rhetoric into stronger economic and corporate earnings growth remains to be seen. Stock prices have experienced upward momentum driven by positive economic news and earnings growth, inflation is ticking higher and interest rates are higher amid the Federal Reserve (Fed) rate hikes.
The Trump administration’s early policy decisions have caused the markets to reassess their outlooks, cooling the stock market rally and stabilizing bond prices. The White House’s pro-growth agenda of tax reform, infrastructure spending and deregulation remains on the table, but there is growing recognition that it may look different than Wall Street had initially expected. Additionally, Brexit negotiations in the U.K. face new uncertainties in light of the reshuffling of Parliament following the June snap election.
Nevertheless, there is a case for optimism. The jobs recovery, firming wages, the housing market and confidence measures are supportive of continued expansion in the economy. The Fed enacted a series of interest rate hikes in December 2016, March 2017 and June 2017, a vote of confidence that its employment and inflation targets are generally on track. Economies outside the U.S. have strengthened in recent months, possibly heralding the beginnings of a global synchronized recovery. Furthermore, the populist/nationalist undercurrent that helped deliver President Trump’s win and triggered the U.K.’s Brexit remained in the minority during both March’s Dutch general election and May’s French presidential election, easing the political uncertainty surrounding Germany’s elections later this year.
In the meantime, the markets will be focused on economic sentiment surveys along with “hard” data such as consumer and business spending to gauge the economy’s progress. With the Fed now firmly in tightening mode, rate moves that are more aggressive than expected could spook the markets and potentially stifle economic growth. On the political economic front, President Trump’s other signature platform plank, protectionism, is arguably anti-growth. We expect some churning in the markets as these issues sort themselves out.
Market volatility readings have been remarkably low of late, but conditions can change quickly. As market conditions evolve, Nuveen remains committed to rigorously assessing opportunities and risks. 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
June 23, 2017
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Comments
Nuveen Dividend Value Fund
Nuveen Mid Cap Value Fund
Nuveen Small Cap Value Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC.
David Chalupnik, CFA, has been the portfolio manager of the Nuveen Dividend Value Fund since 2015. Derek Sadowsky, CFA, has served as a portfolio manager for the Fund since 2012. Effective November 8, 2016, Cori Johnson, CFA, retired from the firm and is no longer a portfolio manager on the Fund.
Karen Bowie, CFA, is the portfolio manager for the Nuveen Mid Cap Value Fund and the Nuveen Small Cap Value Fund. Karen assumed portfolio management responsibilities for the Nuveen Mid Cap Value Fund in 2012 and the Nuveen Small Cap Value Fund in 2006.
Effective April 13, 2017, David Johnson, CFA, and Andrew Rem, CFA, were added as portfolio managers to the Nuveen Small Cap Value Fund.
Here the portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended April 30, 2017.
Nuveen Dividend Value Fund
How did the Fund perform during the six-month reporting period ended April 30, 2017?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year, ten-year and/or since inception periods ended April 30, 2017. 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 both the Russell 1000® Value Index and the Lipper Equity Income Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
During the reporting period, we continued to implement the Fund’s disciplined investment strategy. We seek to achieve consistent, long-term outperformance with lower volatility by building and managing a portfolio diversified between sustainable and opportunistic holdings with a focus on what we believe are attractively valued companies with above average current income or dividend growth. We use an integrated, multi-perspective research and analysis approach that involves a team of portfolio managers, fundamental research analysts and quantitative analysts. The Fund’s holdings exhibit attractive valuations and identifiable catalysts that we believe will drive future stock appreciation. The Fund is also actively managed in an effort to minimize distributed capital gains and maximize after-tax returns using a typical investment horizon of at least two to three years. We adhere to portfolio guidelines to manage volatility and maintain diversification, generally selling a security if it no longer is expected to meet our dividend growth or price appreciation expectations or if we find a better alternative in the marketplace.
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)
The Fund’s outperformance versus both its Russell 1000® Value benchmark and Lipper peers was the result of both stock selection and sector allocations. In terms of the former, security selection was strong in the financial, consumer discretionary, industrial and consumer staples sectors. Also, an underweight position in consumer staples, one of the weaker performing sectors within the Russell 1000® Value Index, boosted returns. Energy was the primary detractor during the reporting period due to security selection and an overweight position in this poorly performing sector.
The financial sector contributed the most to the Fund’s results on a relative basis led by a position in Bank of America Corporation, which saw improvements from lower expenses and growth in its consumer banking business. Investor confidence was further bolstered when the company announced that its annualized, pretax net interest income would go up by $2 billion with a 100 basis point increase in long-term yields and nearly $3.3 billion with a 100 basis point increase in short-term rates. Furthermore, Bank of America finally announced the sale of its U.K. credit card business to Lloyds Banking Group, which is expected to be completed in the first half of 2017. The sale is viewed as a strategic move given that the company has no other consumer business in the U.K. and because of the uncertain outlook following Brexit. The transaction will also free up capital for Bank of America. The Fund also benefited from positions in KeyCorp and Ameriprise Financial, Inc. In the case of KeyCorp, the company has reaped cost savings from its First Niagara Financial Group acquisition and demonstrated good loan growth, an uptick in net interest margin and stable expenses. The acquisition should improve metrics for KeyCorp, such as deposits per branch, which should ultimately increase operating efficiency and improve returns on tangible equity over the next few years. Asset management firm Ameriprise Financial contributed favorably to performance due to a post-election rally. However, we exited this position early in 2017 because we believed the fundamentals no longer supported the stock’s valuation. Also, Ameriprise Financial’s rally was at least partly due to expectations of regulatory and tax reform, which now face headwinds.
Stock selection was also strong in the consumer discretionary sector, led by a position in Wynn Resorts Limited, the operator of luxury casino and resort properties in the U.S., Macau and Cotai. During the reporting period, the company reported solid earnings from its newly opened Wynn Palace in its earnings report. Earnings from properties in the Chinese gaming enclave of Macau were especially strong, exceeding Wall Street estimates. We believe several catalysts remain for Wynn Resorts, including ongoing improvements in gaming and the continued trend of positive data from Las Vegas and Macau, which should provide for upward earnings revisions. On the heels of a long running anti-corruption campaign in China, we believe this high quality company is best positioned to benefit from stabilization in the Macau and Cotai regions.
Performance in the industrial sector was led by a position in CSX Corporation, a railroad and freight company operating in the eastern United States. The stock’s strong performance during the reporting period was the result of positive market reaction to a management change after Hunter Harrison, a proven and experienced railroad executive, was named chief executive officer. We believe CSX has significant margin opportunity under the new leadership as it looks to reduce headcount and increase asset utilization. In addition, we anticipate that improving commodity prices and better rail freight volumes should continue to support the stock. The Fund also saw favorable results from a position in global aerospace and defense firm General Dynamics Corporation. The company reported solid quarterly earnings while also raising guidance due to continued optimism surrounding its Gulfstream business, which has produced strong margins. Although results in the company’s defense and information technology segments were softer than expected, we believe both are well positioned for a rebound in defense spending and the outlook remains positive. Also, the business jet market appears to be bottoming and could be an additional growth driver for the company going forward. In addition, we believe General Dynamics remains attractively valued relative to its defense peers.
Stock selection within the consumer staples area was another source of strength for the Fund, including our position in Unilever NV, the producer and marketer of a wide range of consumer goods such as foods, beverages, cleaning agents and personal care products. The company posted mixed fourth-quarter results highlighted by demonetization in India and volume misses in Europe and Brazil. However, after a failed takeover attempt by Kraft Heinz, Unilever’s management announced a guidance update and strategic review that could allow for accelerated cost savings, disposal of one or two units, buybacks and/or special dividends. Shares rallied on the update and we continue to hold our position, given the number of options the company has available to unlock shareholder value. We also believe Unilever will continue to benefit from its strong exposure to emerging markets, where growing wealth should boost demand for its products.
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The energy sector was the Fund’s primary source of weakness over the reporting period, both due to security selection and an overweight position in the sector. Energy was the worst performing sector in the Russell 1000® Value Index during the reporting period, mainly driven by lower oil prices. Late in 2016, the outlook for oil pricing and supply appeared to be improving because of the production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC). However, as the reporting period progressed, oil prices dropped based on news that U.S. crude inventories were rising faster than expected due to a revival among shale producers. More specifically, lower oil prices hindered the Fund’s positions in oil and gas exploration and production (E&P) companies Occidental Petroleum Corporation and Anadarko Petroleum Corporation as well as oilfield services provider Schlumberger NV. In the case of Occidental Petroleum, we believe free cash flow will inflect positively in 2017 as the company brings a large petrochemical plant online, which should finance growth in its large Permian Basin acreage. Additionally, we believe Occidental Petroleum will benefit from less cost inflation and the ability to produce incremental barrels faster and cheaper than its peers. For these and other reasons, we continued to hold our position in the Fund. In terms of Anadarko Petroleum, the company divested its Marcellus assets, which were primarily natural gas focused, as part of its shift to a more oil-dominant product mix. We believe Anadarko Petroleum continues to have optionality given this shift and is well positioned for additional U.S. onshore activity; therefore, we continued to hold our position. Schlumberger detracted due to continued headwinds from its offshore recovery and international segments. Although the company’s North American business has shown double-digit revenue growth, the company disproportionately relies on an overseas recovery given its heavy international exposure. At the end of the reporting period, the Fund still owned Schlumberger, but we were actively reviewing our position in the stock.
Although the overall contribution from information technology was basically flat for the reporting period, the sector was home to one significant laggard. Semiconductor company QUALCOMM Inc., the world’s largest mobile chipmaker, gave up some of its gains after reporting mixed fourth-quarter results and guidance. All the large handset manufacturers, including Samsung, Apple, Alphabet, Microsoft and Sony, pay licensing revenues to QUALCOMM from each handset sale. This lucrative licensing business generates a significant amount of the company’s profits. During the reporting period, Apple joined the lawsuit against the company, while also alleging that QUALCOMM withheld rebate payments as a retaliatory tactic. Despite the litigation issues, we believe this company will be able to retain its licensing business model, benefit from the push to fifth generation (5G) and use its acquisition of NXP Semiconductors to better leverage its technology.
The health care sector had a slightly negative impact on performance, mainly due to our position in medical device developer and manufacturer Medtronic plc. The company missed its third-quarter sales estimate and although earnings per share were in line with expectations, it was a helped by a tax benefit resulting in poor quality earnings. The revenue miss was driven by underperformance in the Cardio and Vascular group as well as the Diabetes group. We believe the appreciating U.S. dollar and any Affordable Care Act changes could be a headwind for the medical device space, while Medtronic will not benefit from any lower potential tax rate since the company has already done an inversion deal. As such, we sold out of the position at the end of November 2016.
Although the consumer discretionary sector was generally a source of strength, the Fund’s position in toy and game manufacturer Mattel, Inc. lagged. The company posted back-to-back quarterly earnings misses with revenues and earnings per share below consensus during both quarters. The overhang in U.S. retail has slowed Mattel’s reorder growth, resulting in a sales miss that offset expense control initiatives. In addition, investors are somewhat concerned that the company’s dividend may be threatened by its low cash balance and weak free cash flow. Given the disappointing quarters, continued risk in U.S. retail and the need for a longer-term fix, we exited the Fund’s position in Mattel.
Nuveen Mid Cap Value Fund
How did the Fund perform during the six-month reporting period ended April 30, 2017?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2017. 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 both the Russell Midcap® Value Index and the Lipper Mid-Cap Value Funds Classification Average during the six-month reporting period.
NUVEEN | 7 |
Portfolio Managers’ Comments (continued)
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $1.6 billion and $28.1 billion. During the reporting period, we continued to implement the Fund’s investment process of selecting mid-cap companies that we believed were undervalued relative to other companies in the same industry or market. These companies demonstrated or are expected to demonstrate improving fundamentals and have an identifiable catalyst that could close the gap between market value and our perception of fair value. We look for companies that generate strong free cash flow, which allows them to pay down debt, increase dividends, repurchase shares or engage in merger and acquisition (M&A) activities. At the same time, we identify a short- or long-term catalyst we can track and monitor over time that could potentially propel each stock to realize its value. Generally, we sell a holding if the stock price reaches its target, the company’s fundamentals or competitive position significantly deteriorate or if a better alternative exists in the marketplace.
The Fund’s outperformance versus both its Russell Midcap® Value benchmark and Lipper peers was the result of both stock selection and sector allocations. In terms of the former, security selection was strong in the consumer discretionary, financial, health care, industrials and real estate investment trust (REIT) sectors. Returns were also boosted by an overweight position in the strongly performing financial sector and underweight positions in REITs and consumer staples, two of the weaker sectors within the Russell Midcap® Value Index. On the other hand, stock selection detracted in the energy sector during the reporting period.
The financial sector was the Fund’s top performing area during the reporting period led by a strong contribution from SLM Corp., a holding company that engages in the origination, servicing and administration of education loans. The company’s first-quarter 2017 earnings beat estimates, driven by a combination of higher-than-expected net interest income, a lower effective tax rate due to a new stock compensation accounting standard and lower-than-expected provisions expenses. The company also benefited from an improvement in its overall credit quality as net charge-offs as a percentage of average loans in repayment were lower compared to the same period a year ago. However, we decided to sell the Fund’s SLM position in April because we believed the stock was fully valued versus several other alternatives and because the company was facing a pending management change. Also, while the company’s earnings growth has recently been strong, we believed it would likely slow in the future as its portfolio matures. The banking area also displayed standout performance after the election signaled a change in agenda that favored the group, coupled with the rising rate bias indicated by the Federal Reserve (Fed). Investors anticipated that this domestic focused group would benefit from a steeper yield curve, potentially lower corporate tax rates and a more subdued regulatory environment. Also, given improved economic data globally and the expected yield curve steepening, the financial sector in general looked relatively inexpensive. The Fund benefited from positions in Western Alliance Bancorporation and East West Bancorp, Inc. Western Alliance is a multi-bank holding company that operates 40 branches in California, Arizona and Nevada with more than $17 billion in assets. Shares advanced strongly after company management reiterated a strong pipeline and reported a rebound in loan growth. Holding company East West Bancorp, Inc. reported first-quarter 2017 earnings per share well ahead of consensus. The company also provided an upward revision for full-year loan growth on the heels of 15% annualized growth in first quarter 2017 and increased its net interest margin guidance range following the earlier-than-expected Fed rate increase in March 2017. Lastly, financial and investment services company Raymond James Financial Inc. performed well following the release of February 2017 operating data, which showed commissions and fees tracking in-line to slightly above fiscal second-quarter expectations. The company also reported an earnings beat in late April 2017, driven by a combination of a lower compensation expense ratio and a lower tax rate. Incremental upside came from both investment banking and greater-than-expected leverage from the December 2016 and March 2017 interest rate hikes. During the first quarter of 2017, core business drivers improved as Raymond James Financial experienced increases in total client assets, fee-based assets and net new financial advisors.
Stock selection was also favorable in the consumer discretionary sector during the reporting period, led by strong contributions from Best Buy Co. Inc. and Mohawk Industries Inc. Best Buy was rewarded for its ability to consistently grow market share across many categories despite ongoing deflation. The company reported both top- and bottom-line growth driven by sales growth in home theater, mobile phones, wearable devices and connected home, partially offset by declines in gaming. Best Buy has superior merchandising and product expertise, vendor partnerships and a strong e-commerce business. The company also benefited from new product launches and innovation, such as connected home. We believe Best Buy will further benefit from the rollout of its Home Wi-Fi Setup and Support Membership, which portends a stronger service opportunity longer term. The other standout in the
8 | NUVEEN |
discretionary sector, Mohawk Industries, is a manufacturer and distributor of flooring for residential and commercial applications. Although the company’s earnings release in February 2017 was mixed, its outlook for 2017 was more favorable than expected. Mohawk Industries continues to gain market share in flooring and is aggressively moving into the wall tile and countertop areas. The company recently entered into an agreement to acquire a ceramic company in Italy located near its existing facilities, while also revealing plans to build a new modular carpet plant in Belgium to serve the geographically fragmented European market. We continue to believe Mohawk Industries is a well-managed company and has a market share leading position.
In the industrials sector, the Fund benefited from a position in Ingersoll-Rand Plc, the developer and manufacturer of air and ventilation systems. Mild weather during the first quarter of 2017 boosted new construction activity, while replacement demand was generally stable. Ingersoll-Rand is capturing share in the new construction market as the company looks to re-establish itself as a significant player in this segment. The company beat consensus earnings expectations driven by positive margin momentum in its Industrials segment, along with an acceleration in orders in both its Climate and Industrial areas. Although Ingersoll-Rand is experiencing some headwinds from rising prices for steel and other commodities, the company expects to recapture this with pricing as the year progresses. Given the strength in bookings, we continue to believe there is further upside to earnings in the second half of 2017.
Although overall results in the information technology sector were negative for the reporting period, the Fund had one standout in the sector, memory chip manufacturer Micron Technology Inc. The company’s shares rose significantly in March 2017 driven by a solid earnings report and future guidance estimates. Recent market growth has been driven by macroeconomic factors, industry trends and the ever-increasing amount of semiconductor technology in various devices. Management highlighted a continuing healthy demand environment and positive operational and marketing momentum.
On the negative side, the main detractor for the Fund was security selection in the energy sector. Energy was the worst performing sector in the index during the reporting period, mainly driven by lower oil prices. Late in 2016, we believed exploration and production (E&P) firms would benefit from an improved outlook for oil pricing and supply based on the production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC). However, as the reporting period progressed, oil prices dropped based on news that U.S. crude inventories were rising faster than expected due to a revival among shale producers. The Fund was hindered by positions in Pioneer Natural Resources Company, Cimarex Energy Co., Newfield Exploration Company and Nabors Industries Ltd. Pioneer is the most active E&P company in the Permian Basin with the largest land base in the Midland area. The company remains one of our preferred E&P names because we still see upside potential for volumes and net asset value. Cimarex Energy is a liquids-levered producer focused on the Delaware Basin and Meramec/Woodford formations in the Anadarko Basin. While its shares were additionally pressured by total production and oil production misses reported for fourth quarter 2016, we believe Cimarex Energy remains a high quality, returns focused operator that can provide solid growth. Shares of independent E&P firm Newfield Exploration, a pioneer in the STACK play in the Anadarko Basin, were also highly sensitive to oil prices during the reporting period. However, we continue to like this company’s pure-play exposure to the Anadarko Basin and believe it has significant upside potential in terms of both inventory and well productivity. Finally, Nabors Industries, an oil and gas drilling contractor with operations in more than 20 countries, saw its shares lag based on concerns of lower U.S. margins due to costs to move rigs and crews as well as revenue declines for international drilling. However, strong growth in high specification rigs has recently boded well for pricing and Nabors is running its super-spec fleet at near 100%, which should drive margins higher after the first quarter. The company should also benefit from organic growth because nine of the ten rigs it is building are already contracted in 2017. We remained invested in all four positions because we believe OPEC will continue to manage supply, which should help global inventory to decline and oil prices to rebound.
The REIT sector was home to one significant laggard, DDR Corporation, the owner and manager of 319 shopping centers in 35 states and Puerto Rico. DDR’s fourth-quarter 2016 results and 2017 forecast fell below expectations with the company only making gradual progress on its turnaround efforts under recently appointed CEO Tom August. Although fundamentals decelerated sharply in Puerto Rico during the reporting period, prospects to reduce exposure to the commonwealth seemed encouraging because the company is seeing interest from potential buyers and financing is obtainable. We expect DDR to further deleverage through dispositions and make other additions to its management team and board to reduce risk and lay the foundation for greater stability and growth. We continue to hold our position based on news of former Forest City Realty Trust executive William Ross becoming the company’s chief operating officer in January 2017.
NUVEEN | 9 |
Portfolio Managers’ Comments (continued)
In the telecommunication services sector, the Fund was hindered by a position in voice, data and video services provider Frontier Communications Corporation. Following the closure of its acquisition of some of Verizon’s wireline operations in 2016, the company turned its attention to integration and demonstrating that it can operate the acquired business effectively. Although Frontier has continued to generate solid cash flows in recent years, it hasn’t made progress in improving its financial position. Also, the company did not use the Verizon transaction to reduce leverage. Because we could not gauge the timing of revenue stability in the acquired markets, we sold the Fund’s position.
Nuveen Small Cap Value Fund
How did the Fund perform during the six-month reporting period ended April 30, 2017?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year, ten-year and/or since inception periods ended April 30, 2017. 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 Russell 2000® Value Index and outperformed the Lipper Small-Cap Value Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing primarily in the common stocks of companies with market capitalizations of $103 million to $4.7 billion at the time of purchase. During the reporting period, we continued to focus on building a well-diversified portfolio of small-cap stocks from companies with strengthening balance sheets and free cash flow characteristics. We also continued to target companies with sound business models and strong competitive advantages that we believe can gain market share opportunistically in the current environment. We remained committed to our approach of investing in quality companies that are trading at a discount to both intrinsic and relative value metrics.
The Fund’s outperformance versus its Lipper peer group was the result of strong stock selection in the financial and industrials sectors. On the other hand, security selection detracted in the information technology, health care and energy sectors, causing the Fund to underperform versus the Russell 2000® Value Index.
The financial sector was the Fund’s top-performing area during the reporting period led by strong contributions from Preferred Bank, Evercore Partners Inc., Bank of the Ozarks, Inc. and CNO Financial Group, Inc. The banking group, in particular, displayed standout performance after the election signaled a change in agenda that favored the group, coupled with the rising interest rate bias indicated by the Federal Reserve (Fed). Investors anticipated that this domestic-focused group would benefit from a steeper yield curve, potentially lower corporate tax rates and a more subdued regulatory environment. Preferred Bank, a West Coast bank with a niche in the Chinese-American market, continued to generate strong loan growth and managed expenses to provide attractive bottom-line returns. Bank of the Ozarks, an Arkansas-based bank focused in the Southern U.S., continued to display strong top-line growth. Outside of the banking area, the Fund also benefited from a position in Evercore Partners, an investment banking advisory and management firm focused on the institutional market. The company experienced strong top-line growth given the productivity of its staff and the tailwinds of an improving merger and acquisition market. The pipeline of transactions, new advisor hires and an improved economic environment boded well for Evercore’s shares during the reporting period. Performance was also aided by a position in CNO Financial, a diversified life insurance firm that offers supplemental health insurance, annuities and long-term care products. CNO Financial’s announcement of the resumption of its share buyback plan was a positive catalyst and suggested that the company has moved past last fall’s controversy with reinsurer Beechwood Re.
The industrial sector was also home to several standouts for the Fund including Tutor Perini Corporation, an engineering and construction (E&C) firm focused on large (over $100 million) commercial and civil projects throughout the United States. The company reported a solid fourth-quarter 2016 report and gave 2017 guidance that was in line with expectations. More importantly, Tutor Perini won several large projects in first quarter 2017 and bid on a few other major projects, which contributed to its robust project pipeline. In addition, investors continued to be optimistic about E&C names that they perceived would benefit from domestic infrastructure projects. Although we were encouraged by Tutor Perini’s performance, we opportunistically trimmed the Fund’s position during the reporting period. The Fund also saw strong results from NN Incorporated, an industrial machinery company with two
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primary segments, Metal Bearings and Precision Components. NN reported a solid fourth-quarter 2016 earnings report and favorable 2017 guidance, with no changes relative to its previous outlook comments. On the heels of difficult end markets in 2015 and 2016, NN’s management expressed a more optimistic tone to start 2017. Other recent positive news related to refinancing the company’s debt and the resulting potential accretion. We also saw strength from a position in Altra Industrial Motion Inc., a machinery manufacturer focused on power transmission that benefited from its broad end market exposure and margin improvement. The company has demonstrated solid operational execution in its last three quarterly reports during an improving industrial market environment, bolstered by positive investor sentiment toward early cyclical names. We trimmed our position in Altra Industrial based on valuation, but continue to like this company.
While the information technology sector generally detracted, it was home to two of the Fund’s strongest performers. Shares of NeuStar Inc., a specialty data analytics and security services provider, jumped sharply after the company agreed to be acquired by a private equity group at a strong premium. Also, Cypress Semiconductor Corporation, a diversified manufacturer of semiconductors with an emphasis on the global industrial and automobile markets, reported solid first-quarter 2017 earnings and guidance for the second quarter with the company’s new, internally promoted CEO at the helm. The company continued to execute on its game plan of targeted top-line growth with gross margin expansion in 2017 and 2018.
Unfortunately, several other names in the technology sector more than offset those positive results, contributing to the Fund’s shortfall versus the Russell 2000® Value Index. The leading detractor was a position in Synchronoss Technologies Inc., which has historically provided software and services to communication service companies on a global basis. During the reporting period, Synchronoss executed a transformative acquisition of IntraLinks to solidify its position in the emerging enterprise segment, while selling the majority of its declining cell phone activation business. The IntraLinks deal closed in January 2017 and Synchronoss subsequently negatively pre-announced results for first quarter 2017, a rare event for a company with a relatively predictable subscription revenue model and a long track record of not missing expectations. While we await more details on the company’s future direction from the returning management team, we continue to run analysis around potential business models for 2017 and beyond. Because we believe the market has already discounted the downside scenario for 2017, we have retained our position for the time being, but are monitoring the situation closely. We will determine what direction to pursue based on the company’s first-quarter 2017 report.
The Fund also saw weak results from a position in Finisar Corporation, a leading global manufacturer of optical components serving the data center and telecommunications network equipment markets. The company is facing weaker industry conditions due to a lull in optical equipment orders from the leading telecom companies in China. While Finisar’s 20% exposure to this market helps explain its recent share price weakness, we remain constructive regarding the name. We believe the company will benefit from its larger exposure to secular growth in next-generation optical equipment at the hyper-scale data centers, while Chinese demand is also likely to return in the second half of 2017. These factors, plus Finisar’s strong balance sheet and discounted valuation relative to its competitors, led us to maintain our position. In addition, a position in wireless networking equipment provider NETGEAR Inc. detracted during the reporting period. On the heels of solid top-line growth and margin expansion due the company’s leadership and growth in gateway routers and security cameras, NETGEAR’s stock was negatively impacted by management’s new, aggressive go-to-market strategy to increase market share in these segments. In the short term, the company guided for a lower-than-typical profit margin in order to proactively solidify its leadership position. However, historically NETGEAR’s management has kept a laser-like focus on maintaining an operating margin profile that is much greater than its near-term guidance. Therefore, we remain confident in the company’s ability to preemptively ward off would be entrants and return to normal profit margins by year-end 2017. We continue to maintain our position.
The energy sector was also somewhat challenging for the Fund during the reporting period. Year to date in 2017, the sector has dramatically underperformed based on the lack of progress in decreasing the global inventory glut, despite a production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC) in November 2016. U.S. crude inventories have risen faster than expected due to a revival among shale producers. While reducing floating storage has taken some time, we are finally seeing a downward trend of oil imports into the United States. Consequently, fundamentals from both a macro and micro standpoint are slowly improving in the energy sector. Our positions in Superior Energy Services Inc. and Callon Petroleum Company did detract during the reporting period, but we remain invested in both based on the improving fundamental backdrop and other recent signs of strength. Superior Energy, a global energy services company with solid market positioning in the well completion and production
NUVEEN | 11 |
Portfolio Managers’ Comments (continued)
markets, issued a first-quarter 2017 report that showed sequential improvement in its margin profile, driven primarily by increasing activity and pricing in its U.S. land completion services segment. The company has expensed the reactivation costs of once idle equipment over the past two quarters, leaving potential for additional margin improvement. Also, Superior Energy’s management remains disciplined in its allocation of capital. The most recent first-quarter 2017 report issued by Callon Petroleum, a pure-play Permian exploration and production firm, indicated that the company is back on track with its production growth profile, operating margins and solid individual well results that solidify the underlying value of acreage acquired in 2016.
Elsewhere in the portfolio, the industrials sector was home to one significant laggard, Babcock & Wilcox Enterprises Inc. The company manufactures, installs and services highly complex equipment and systems for power generation and industrial applications globally. The primary issue affecting Babcock & Wilcox was a series of problem projects in its Renewable segment that were identified in the fourth quarter, which caused the company to take a significant charge and give disappointing 2017 guidance. The stock’s sharp selloff at the end of February factored in a complete write-off of these projects; however, management’s goal is to improve on this scenario. Therefore, we remain holders of Babcock & Wilcox, but are closely monitoring project milestones.
In the consumer discretionary sector, shares of leading contemporary apparel and accessories retailer Express Inc. remained depressed due to the challenging retail environment. The company’s balance sheet looks strong with net cash at more than $2 per share and no debt. As we move into the second half of 2017, the headwinds of technology investment costs will be behind Express, but retail traffic is expected to remain under pressure. However, with the bar set so low for the group, we anticipate positive inflection points for margins and therefore remain holders of the stock.
Although overall results were slightly positive in the real estate investment trust (REIT) sector, the Fund experienced weakness from a position in Kite Realty Group Trust, a shopping center REIT with properties focused in Indiana, Florida and Texas. The challenging retail environment has also negatively impacted Kite Realty and its peers as many retailers have closed their doors. However, management has remained on track with its acquisition/disposition program and the firm has experienced improving same-store sales net operating income, despite its weak stock price. We maintained our holding in Kite Realty given its better-than-expected operating metrics and attractive valuation, while acknowledging the industry-wide headwinds that face the sector.
12 | NUVEEN |
Nuveen Dividend Value Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Dividends are not guaranteed. Prices of equity securities may decline significantly over short or extended periods of time. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as credit, derivatives, high yield securities, and interest rate risks, are described in detail in the Fund’s prospectus.
Nuveen Mid Cap Value Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in mid-cap companies are subject to greater volatility than those of larger companies, but may be less volatile than investments in smaller companies. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as derivatives risk, are described in detail in the Fund’s prospectus.
Nuveen Small Cap Value Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in smaller companies are subject to greater volatility than those of larger companies. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as derivatives risk, are described in detail in the Fund’s prospectus.
NUVEEN | 13 |
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14 | 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. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns for a period of less than one year are not annualized. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
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 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 | 15 |
Fund Performance and Expense Ratios (continued)
Nuveen Dividend Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 April 30, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 13.98% | 19.12% | 11.33% | 6.88% | ||||||||||||
Class A Shares at maximum Offering Price | 7.44% | 12.27% | 10.01% | 6.25% | ||||||||||||
Russell 1000® Value Index | 11.69% | 16.55% | 13.32% | 5.53% | ||||||||||||
S&P 500® Index | 13.32% | 17.92% | 13.68% | 7.15% | ||||||||||||
Lipper Equity Income Funds Classification Average | 10.91% | 14.28% | 10.64% | 5.81% | ||||||||||||
Class C Shares | 13.54% | 18.12% | 10.48% | 6.07% | ||||||||||||
Class R3 Shares | 13.80% | 18.72% | 11.03% | 6.60% | ||||||||||||
Class I Shares | 14.13% | 19.38% | 11.61% | 7.14% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 14.23% | 19.55% | 11.64% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 11.75% | 20.88% | 11.22% | 7.25% | ||||||||||||
Class A Shares at maximum Offering Price | 5.32% | 13.95% | 9.91% | 6.62% | ||||||||||||
Class C Shares | 11.36% | 19.96% | 10.40% | 6.46% | ||||||||||||
Class R3 Shares | 11.65% | 20.55% | 10.94% | 6.98% | ||||||||||||
Class I Shares | 11.92% | 21.20% | 11.50% | 7.52% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 12.02% | 21.37% | 11.82% |
Since inception returns for Class R6 Shares are from 2/28/13. 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%, 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 | 1.07% | 1.82% | 1.33% | 0.72% | 0.82% |
16 | NUVEEN |
Nuveen Mid Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 April 30, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 14.34% | 16.85% | 12.34% | 5.64% | ||||||||||||
Class A Shares at maximum Offering Price | 7.77% | 10.14% | 11.01% | 5.02% | ||||||||||||
Russell Midcap® Value Index | 12.42% | 17.52% | 14.26% | 7.16% | ||||||||||||
Lipper Mid-Cap Value Funds Classification Average | 13.27% | 17.45% | 12.32% | 6.19% | ||||||||||||
Class C Shares | 13.93% | 15.98% | 11.50% | 4.85% | ||||||||||||
Class R3 Shares | 14.20% | 16.54% | 12.06% | 5.38% | ||||||||||||
Class I Shares | 14.47% | 17.13% | 12.62% | 5.90% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 9.76% | 18.98% | 12.07% | 6.08% | ||||||||||||
Class A Shares at maximum Offering Price | 3.45% | 12.13% | 10.74% | 5.45% | ||||||||||||
Class C Shares | 9.35% | 18.09% | 11.22% | 5.28% | ||||||||||||
Class R3 Shares | 9.64% | 18.69% | 11.79% | 5.82% | ||||||||||||
Class I Shares | 9.93% | 19.31% | 12.35% | 6.34% |
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%, 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 I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Gross Expense Ratios | 1.32% | 2.07% | 1.57% | 1.07% | ||||||||||||
Net Expense Ratios | 1.17% | 1.92% | 1.42% | 0.92% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2018, 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 0.92% 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.
NUVEEN | 17 |
Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Value Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 April 30, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 18.08% | 26.86% | 14.82% | 8.00% | ||||||||||||
Class A Shares at maximum Offering Price | 11.29% | 19.57% | 13.47% | 7.37% | ||||||||||||
Russell 2000® Value Index | 18.26% | 27.18% | 12.96% | 6.02% | ||||||||||||
Lipper Small-Cap Value Funds Classification Average | 16.95% | 21.63% | 11.57% | 6.13% | ||||||||||||
Class C Shares | 17.62% | 25.85% | 13.97% | 7.20% | ||||||||||||
Class R3 Shares | 17.95% | 26.53% | 14.53% | 7.74% | ||||||||||||
Class I Shares | 18.24% | 27.16% | 15.11% | 8.26% |
Cumulative | Average Annual | |||||||
6-Month | Since Inception | |||||||
Class R6 Shares | 18.15% | 21.69% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 14.15% | 28.22% | 14.66% | 8.13% | ||||||||||||
Class A Shares at maximum Offering Price | 7.59% | 20.87% | 13.31% | 7.50% | ||||||||||||
Class C Shares | 13.75% | 27.29% | 13.81% | 7.34% | ||||||||||||
Class R3 Shares | 14.00% | 27.86% | 14.37% | 7.87% | ||||||||||||
Class I Shares | 14.29% | 28.55% | 14.95% | 8.40% |
Cumulative | Average Annual | |||||||
6-Month | Since Inception | |||||||
Class R6 Shares | 14.20% | 22.17% |
Since inception returns for Class R6 Shares are from 6/30/16. 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%, 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 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 | 1.32% | 2.07% | 1.57% | 0.95% | 1.07% | |||||||||||||||
Net Expense Ratios | 1.22% | 1.97% | 1.47% | 0.85% | 0.97% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2019, 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 0.99% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund.
18 | NUVEEN |
Summaries as of April 30, 2017
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.
Nuveen Dividend Value Fund
Fund Allocation
(% of net assets)
Common Stocks | 99.3% | |||
Money Market Funds | 0.7% | |||
Other Assets Less Liabilities | 0.0% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Banks | 14.6% | |||
Oil, Gas & Consumable Fuels | 12.1% | |||
Pharmaceuticals | 4.7% | |||
Capital Markets | 4.7% | |||
Equity Real Estate Investment Trusts | 4.5% | |||
Chemicals | 3.9% | |||
Multi-Utilities | 3.8% | |||
Diversified Telecommunication Services | 3.7% | |||
Hotels, Restaurants & Leisure | 3.6% | |||
Technology Hardware, Storage & Peripherals | 3.2% | |||
Software | 3.1% | |||
Energy Equipment & Services | 2.8% | |||
Tobacco | 2.7% | |||
Communications Equipment | 2.5% | |||
Health Care Providers & Services | 2.4% | |||
Household Durables | 2.4% | |||
Food Products | 2.3% | |||
Electrical Equipment | 2.2% | |||
Aerospace & Defense | 2.1% | |||
Other | 18.0% | |||
Money Market Funds | 0.7% | |||
Other Assets Less Liabilities | 0.0% | |||
Net Assets | 100% |
Top Five Common Stock Holdings
(% of net assets)
JP Morgan Chase & Co. | 4.5% | |||
Bank of America Corporation | 4.4% | |||
AT&T Inc. | 3.7% | |||
Chevron Corporation | 3.5% | |||
Pfizer Inc. | 3.2% |
NUVEEN | 19 |
Holding Summaries as of April 30, 2017 (continued)
Nuveen Mid Cap Value Fund
Fund Allocation
(% of net assets)
Common Stocks | 99.4% | |||
Investments Purchased with | 1.5% | |||
Money Market Funds | 0.6% | |||
Other Assets Less Liabilities | (1.5)% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Banks | 8.6% | |||
Equity Real Estate Investment Trusts | 8.0% | |||
Machinery | 7.0% | |||
Oil, Gas & Consumable Fuels | 7.0% | |||
Capital Markets | 6.7% | |||
Software | 5.6% | |||
Household Durables | 4.5% | |||
Multi-Utilities | 4.2% | |||
Hotels, Restaurants & Leisure | 3.8% | |||
Insurance | 3.5% | |||
Electric Utilities | 3.3% | |||
Food Products | 3.0% | |||
Chemicals | 2.9% | |||
Containers & Packaging | 2.5% | |||
IT Services | 2.3% | |||
Aerospace & Defense | 2.2% | |||
Health Care Providers & Services | 2.1% | |||
Health Care Equipment & Supplies | 2.0% | |||
Mortgage Real Estate Investment Trusts | 1.8% | |||
Other | 18.4% | |||
Investments Purchased with Collateral from Securities Lending | 1.5% | |||
Money Market Funds | 0.6% | |||
Other Assets Less Liabilities | (1.5)% | |||
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets)
L-3 Communications Holdings, Inc. | 2.2% | |||
Edison International | 2.2% | |||
MGM Resorts International Inc. | 2.1% | |||
Ingersoll Rand Company Limited, Class A | 2.1% | |||
Old Republic International Corporation | 2.1% |
20 | NUVEEN |
Nuveen Small Cap Value Fund
Fund Allocation
(% of net assets)
Common Stocks | 97.7% | |||
Investments Purchased with Collateral from Securities Lending | 1.0% | |||
Money Market Funds | 1.7% | |||
Other Assets Less Liabilities | (0.4)% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Banks | 18.8% | |||
Equity Real Estate Investment Trusts | 7.7% | |||
Insurance | 6.8% | |||
Communications Equipment | 5.3% | |||
Oil, Gas & Consumable Fuels | 4.6% | |||
Commercial Services & Supplies | 4.6% | |||
Thrifts & Mortgage Finance | 4.5% | |||
Health Care Providers & Services | 4.0% | |||
Machinery | 3.3% | |||
Semiconductors & Semiconductor Equipment | 3.2% | |||
Chemicals | 2.7% | |||
Household Durables | 2.4% | |||
Metals & Mining | 2.3% | |||
Auto Components | 2.2% | |||
Mortgage Real Estate Investment Trusts | 2.2% | |||
Electrical Equipment | 2.1% | |||
Construction & Engineering | 1.9% | |||
Other | 19.1% | |||
Investments Purchased with Collateral from Securities Lending | 1.0% | |||
Money Market Funds | 1.7% | |||
Other Assets Less Liabilities | (0.4)% | |||
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets)
Plantronics Inc. | 2.2% | |||
Invesco Mortgage Capital Inc. | 2.2% | |||
Renasant Corporation | 2.1% | |||
Banner Corporation | 2.1% | |||
NN, Incorporated | 2.0% |
NUVEEN | 21 |
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 April 30, 2017.
The beginning of the period is November 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 Dividend Value 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 | $ | 1,139.80 | $ | 1,135.40 | $ | 1,138.00 | $ | 1,142.30 | $ | 1,141.30 | ||||||||||
Expenses Incurred During the Period | $ | 5.68 | $ | 9.69 | $ | 7.00 | $ | 3.82 | $ | 4.41 | ||||||||||
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 | $ | 1,019.49 | $ | 1,015.72 | $ | 1,018.25 | $ | 1,021.22 | $ | 1,020.68 | ||||||||||
Expenses Incurred During the Period | $ | 5.36 | $ | 9.15 | $ | 6.61 | $ | 3.61 | $ | 4.16 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.07%, 1.83%, 1.32%, 0.72% and 0.83% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
22 | NUVEEN |
Nuveen Mid Cap Value 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 | $ | 1,143.40 | $ | 1,139.30 | $ | 1,142.00 | $ | 1,144.70 | ||||||||
Expenses Incurred During the Period | $ | 6.22 | $ | 10.18 | $ | 7.54 | $ | 4.89 | ||||||||
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 | $ | 1,018.99 | $ | 1,015.27 | $ | 1,017.75 | $ | 1,020.23 | ||||||||
Expenses Incurred During the Period | $ | 5.86 | $ | 9.59 | $ | 7.10 | $ | 4.61 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.17%, 1.92%, 1.42% and 0.92% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Nuveen Small Cap Value 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 | $ | 1,180.80 | $ | 1,176.20 | $ | 1,179.50 | $ | 1,181.50 | $ | 1,182.40 | ||||||||||
Expenses Incurred During the Period | $ | 6.65 | $ | 10.68 | $ | 8.00 | $ | 4.54 | $ | 5.30 | ||||||||||
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 | $ | 1,018.70 | $ | 1,014.98 | $ | 1,017.46 | $ | 1,020.63 | $ | 1,019.93 | ||||||||||
Expenses Incurred During the Period | $ | 6.16 | $ | 9.89 | $ | 7.40 | $ | 4.21 | $ | 4.91 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.23%, 1.98%, 1.48%, 0.84% and 0.98% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
NUVEEN | 23 |
Nuveen Dividend Value Fund
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 99.3% | ||||||||
COMMON STOCKS – 99.3% | ||||||||
Aerospace & Defense – 2.1% | ||||||||
113,282 | General Dynamics Corporation | $ | 21,952,919 | |||||
Banks – 14.6% | ||||||||
1,998,166 | Bank of America Corporation | 46,637,194 | ||||||
344,085 | BankUnited Inc. | 12,142,760 | ||||||
325,039 | CIT Group Inc. | 15,052,556 | ||||||
1,177,193 | Huntington BancShares Inc. | 15,138,702 | ||||||
555,909 | JP Morgan Chase & Co. | 48,364,086 | ||||||
994,397 | KeyCorp. | 18,137,801 | ||||||
Total Banks | 155,473,099 | |||||||
Biotechnology – 1.7% | ||||||||
271,322 | AbbVie Inc. | 17,890,973 | ||||||
Capital Markets – 4.7% | ||||||||
152,649 | NASDAQ Stock Market, Inc. | 10,512,937 | ||||||
275,591 | Raymond James Financial Inc. | 20,537,041 | ||||||
231,365 | State Street Corporation | 19,411,524 | ||||||
Total Capital Markets | 50,461,502 | |||||||
Chemicals – 3.9% | ||||||||
129,884 | Celanese Corporation, Series A | 11,305,103 | ||||||
137,098 | Eastman Chemical Company | 10,933,566 | ||||||
100,163 | PPG Industries, Inc. | 11,001,904 | ||||||
63,440 | Praxair, Inc. | 7,928,731 | ||||||
Total Chemicals | 41,169,304 | |||||||
Commercial Services & Supplies – 1.1% | ||||||||
264,010 | KAR Auction Services Inc. | 11,516,116 | ||||||
Communications Equipment – 2.5% | ||||||||
781,404 | Cisco Systems, Inc. | 26,622,434 | ||||||
Consumer Finance – 1.1% | ||||||||
179,472 | Discover Financial Services | 11,233,152 | ||||||
Containers & Packaging – 1.4% | ||||||||
271,143 | WestRock Company | 14,522,419 | ||||||
Diversified Telecommunication Services – 3.7% | ||||||||
1,004,444 | AT&T Inc. | 39,806,116 |
24 | NUVEEN |
Shares | Description (1) | Value | ||||||
Electric Utilities – 1.9% | ||||||||
150,963 | NextEra Energy Inc. | $ | 20,162,618 | |||||
Electrical Equipment – 2.2% | ||||||||
314,566 | Eaton PLC | 23,793,772 | ||||||
Energy Equipment & Services – 2.8% | ||||||||
823,670 | Nabors Industries Inc. | 8,516,748 | ||||||
290,033 | Schlumberger Limited | 21,053,495 | ||||||
Total Energy Equipment & Services | 29,570,243 | |||||||
Equity Real Estate Investment Trusts – 4.5% | ||||||||
212,180 | Crown Castle International Corporation | 20,072,228 | ||||||
205,995 | Lamar Advertising Company | 14,846,060 | ||||||
504,230 | Park Hotels & Resorts, Inc. | 12,943,584 | ||||||
Total Equity Real Estate Investment Trusts | 47,861,872 | |||||||
Food Products – 2.3% | ||||||||
270,169 | Kraft Heinz Company | 24,420,576 | ||||||
Health Care Providers & Services – 2.4% | ||||||||
88,395 | CIGNA Corporation | 13,822,326 | ||||||
68,573 | UnitedHealth Group Incorporated | 11,992,046 | ||||||
Total Health Care Providers & Services | 25,814,372 | |||||||
Hotels, Restaurants & Leisure – 3.6% | ||||||||
184,602 | Hilton Worldwide Holdings Inc. | 10,885,989 | ||||||
171,834 | Six Flags Entertainment Corporation | 10,758,527 | ||||||
132,714 | Wynn Resorts Ltd | 16,325,149 | ||||||
Total Hotels, Restaurants & Leisure | 37,969,665 | |||||||
Household Durables – 2.4% | ||||||||
394,998 | D.R. Horton, Inc. | 12,991,484 | ||||||
67,509 | Whirlpool Corporation | 12,535,071 | ||||||
Total Household Durables | 25,526,555 | |||||||
Insurance – 1.0% | ||||||||
517,349 | Old Republic International Corporation | 10,698,777 | ||||||
IT Services – 1.2% | ||||||||
146,075 | Fidelity National Information Services | 12,298,054 | ||||||
Media – 1.3% | ||||||||
352,349 | Comcast Corporation, Class A | 13,808,557 | ||||||
Mortgage Real Estate Investment Trusts – 1.6% | ||||||||
736,749 | Starwood Property Trust Inc. | 16,716,835 | ||||||
Multi-Utilities – 3.8% | ||||||||
269,938 | CMS Energy Corporation | 12,255,185 |
NUVEEN | 25 |
Nuveen Dividend Value Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
Multi-Utilities (continued) | ||||||||
159,751 | DTE Energy Company | $ | 16,708,357 | |||||
459,962 | NiSource Inc. | 11,154,079 | ||||||
Total Multi-Utilities | 40,117,621 | |||||||
Oil, Gas & Consumable Fuels – 12.1% | ||||||||
362,621 | Anadarko Petroleum Corporation | 20,676,649 | ||||||
353,639 | Chevron Corporation | 37,733,281 | ||||||
552,695 | HollyFrontier Company | 15,552,837 | ||||||
348,489 | Occidental Petroleum Corporation | 21,446,013 | ||||||
73,644 | Pioneer Natural Resources Company | 12,739,676 | ||||||
690,730 | Williams Companies Inc. | 21,157,060 | ||||||
Total Oil, Gas & Consumable Fuels | 129,305,516 | |||||||
Personal Products – 2.0% | ||||||||
410,293 | Unilever NV | 21,433,706 | ||||||
Pharmaceuticals – 4.7% | ||||||||
258,732 | Merck & Company Inc. | 16,126,766 | ||||||
1,013,335 | Pfizer Inc. | 34,372,323 | ||||||
Total Pharmaceuticals | 50,499,089 | |||||||
Road & Rail – 1.7% | ||||||||
367,010 | CSX Corporation | 18,658,788 | ||||||
Semiconductors & Semiconductor Equipment – 1.1% | ||||||||
180,780 | Xilinx, Inc. | 11,409,026 | ||||||
Software – 3.1% | ||||||||
323,378 | CA Technologies | 10,616,500 | ||||||
332,431 | Microsoft Corporation | 22,758,226 | ||||||
Total Software | 33,374,726 | |||||||
Specialty Retail – 0.9% | ||||||||
191,248 | Best Buy Co., Inc. | 9,908,559 | ||||||
Technology Hardware, Storage & Peripherals – 3.2% | ||||||||
123,035 | Apple, Inc. | 17,673,978 | ||||||
867,849 | HP Inc. | 16,332,918 | ||||||
Total Technology Hardware, Storage & Peripherals | 34,006,896 | |||||||
Tobacco – 2.7% | ||||||||
402,067 | Altria Group, Inc. | 28,860,369 | ||||||
Total Long-Term Investments (cost $756,119,463) | 1,056,864,226 |
26 | NUVEEN |
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 0.7% | ||||||||
Money Market Funds – 0.7% | ||||||||
7,748,205 | First American Treasury Obligations Fund, Class Z, 0.626%, (2) | $ | 7,748,205 | |||||
Total Short-Term Investments (cost $7,748,205) | 7,748,205 | |||||||
Total Investments (cost $763,867,668) – 100% | 1,064,612,431 | |||||||
Other Assets Less Liabilities – 0.0% | 56,948 | |||||||
Net Assets – 100% | $ | 1,064,669,379 |
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) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
See accompanying notes to financial statements.
NUVEEN | 27 |
Nuveen Mid Cap Value Fund
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 99.4% | ||||||||
COMMON STOCKS – 99.4% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
13,921 | L-3 Communications Holdings, Inc. | $ | 2,391,207 | |||||
Airlines – 1.1% | ||||||||
13,781 | Alaska Air Group, Inc. | 1,172,625 | ||||||
Banks – 8.6% | ||||||||
40,873 | CIT Group Inc. | 1,892,829 | ||||||
33,596 | East West Bancorp Inc. | 1,823,255 | ||||||
177,885 | Huntington BancShares Inc. | 2,287,601 | ||||||
59,544 | KeyCorp. | 1,086,083 | ||||||
46,307 | Western Alliance Bancorporation, (2) | 2,218,105 | ||||||
Total Banks | 9,307,873 | |||||||
Building Products – 1.0% | ||||||||
17,519 | Owens Corning | 1,066,031 | ||||||
Capital Markets – 6.7% | ||||||||
59,119 | E*Trade Group Inc., (2) | 2,042,561 | ||||||
16,860 | Evercore Partners Inc. | 1,243,425 | ||||||
27,587 | NASDAQ Stock Market, Inc. | 1,899,917 | ||||||
27,676 | Raymond James Financial Inc. | 2,062,416 | ||||||
Total Capital Markets | 7,248,319 | |||||||
Chemicals – 2.9% | ||||||||
17,915 | Celanese Corporation, Series A | 1,559,322 | ||||||
20,601 | Eastman Chemical Company | 1,642,930 | ||||||
Total Chemicals | 3,202,252 | |||||||
Consumer Finance – 1.5% | ||||||||
26,486 | Discover Financial Services | 1,657,759 | ||||||
Containers & Packaging – 2.5% | ||||||||
17,772 | International Paper Company | 959,155 | ||||||
32,543 | WestRock Company | 1,743,003 | ||||||
Total Containers & Packaging | 2,702,158 | |||||||
Electric Utilities – 3.3% | ||||||||
29,805 | Alliant Energy Corporation | 1,171,933 | ||||||
29,773 | Edison International | 2,380,947 | ||||||
Total Electric Utilities | 3,552,880 | |||||||
Electrical Equipment – 1.1% | ||||||||
10,789 | Hubbell Inc. | 1,220,560 |
28 | NUVEEN |
Shares | Description (1) | Value | ||||||
Electronic Equipment, Instruments & Components – 1.1% | ||||||||
16,242 | Arrow Electronics, Inc., (2) | $ | 1,145,061 | |||||
Energy Equipment & Services – 1.8% | ||||||||
114,715 | Nabors Industries Inc. | 1,186,153 | ||||||
59,580 | Superior Energy Services, Inc. | 719,726 | ||||||
Total Energy Equipment & Services | 1,905,879 | |||||||
Equity Real Estate Investment Trusts – 8.0% | ||||||||
98,826 | Developers Diversified Realty Corporation | 1,068,309 | ||||||
19,540 | Digital Realty Trust Inc. | 2,243,974 | ||||||
17,790 | Entertainment Properties Trust | 1,293,511 | ||||||
40,969 | First Industrial Realty Trust, Inc. | 1,152,868 | ||||||
15,378 | Mid-America Apartment Communities | 1,525,651 | ||||||
13,869 | SL Green Realty Corporation | 1,455,274 | ||||||
Total Equity Real Estate Investment Trusts | 8,739,587 | |||||||
Food Products – 3.0% | ||||||||
36,254 | Lamb Weston Holding, Inc. | 1,513,605 | ||||||
29,736 | Pinnacle Foods Inc. | 1,729,148 | ||||||
Total Food Products | 3,242,753 | |||||||
Gas Utilities – 1.1% | ||||||||
21,112 | National Fuel Gas Company | 1,169,183 | ||||||
Health Care Equipment & Supplies – 2.0% | ||||||||
43,910 | Boston Scientific Corporation, (2) | 1,158,346 | ||||||
8,181 | Zimmer Biomet Holdings, Inc. | 978,857 | ||||||
Total Health Care Equipment & Supplies | 2,137,203 | |||||||
Health Care Providers & Services – 2.1% | ||||||||
10,716 | Centene Corporation, (2) | 797,270 | ||||||
9,451 | CIGNA Corporation | 1,477,853 | ||||||
Total Health Care Providers & Services | 2,275,123 | |||||||
Hotels, Restaurants & Leisure – 3.8% | ||||||||
76,196 | MGM Resorts International Inc. | 2,339,979 | ||||||
16,780 | Royal Caribbean Cruises Limited | 1,788,748 | ||||||
Total Hotels, Restaurants & Leisure | 4,128,727 | |||||||
Household Durables – 4.5% | ||||||||
42,514 | D.R. Horton, Inc. | 1,398,285 | ||||||
8,993 | Mohawk Industries Inc., (2) | 2,111,466 | ||||||
7,719 | Whirlpool Corporation | 1,433,264 | ||||||
Total Household Durables | 4,943,015 | |||||||
Insurance – 3.5% | ||||||||
111,094 | Old Republic International Corporation | 2,297,424 |
NUVEEN | 29 |
Nuveen Mid Cap Value Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
Insurance (continued) | ||||||||
33,393 | Unum Group | $ | 1,547,098 | |||||
Total Insurance | 3,844,522 | |||||||
IT Services – 2.3% | ||||||||
17,208 | Fidelity National Information Services | 1,448,742 | ||||||
70,588 | First Data Corporation, Class A Shares, (2) | 1,102,585 | ||||||
Total IT Services | 2,551,327 | |||||||
Leisure Products – 1.4% | ||||||||
15,840 | Hasbro, Inc. | 1,569,902 | ||||||
Life Sciences Tools & Services – 0.9% | ||||||||
16,671 | Agilent Technologies, Inc. | 917,739 | ||||||
Machinery – 7.0% | ||||||||
7,436 | Cummins Inc. | 1,122,390 | ||||||
25,004 | Dover Corporation | 1,972,316 | ||||||
26,090 | Ingersoll Rand Company Limited, Class A | 2,315,488 | ||||||
13,921 | Parker Hannifin Corporation | 2,238,497 | ||||||
Total Machinery | 7,648,691 | |||||||
Metals & Mining – 1.2% | ||||||||
36,882 | Steel Dynamics Inc. | 1,332,915 | ||||||
Mortgage Real Estate Investment Trusts – 1.8% | ||||||||
84,800 | Starwood Property Trust Inc. | 1,924,112 | ||||||
Multi-Utilities – 4.2% | ||||||||
21,889 | DTE Energy Company | 2,289,371 | ||||||
39,850 | MDU Resources Group Inc. | 1,071,965 | ||||||
50,161 | NiSource Inc. | 1,216,404 | ||||||
Total Multi-Utilities | 4,577,740 | |||||||
Oil, Gas, & Consumable Fuels – 7.0% | ||||||||
14,168 | Cimarex Energy Company | 1,653,122 | ||||||
47,033 | HollyFrontier Company | 1,323,509 | ||||||
99,027 | Marathon Oil Corporation | 1,472,531 | ||||||
31,029 | Newfield Exploration Company, (2) | 1,074,224 | ||||||
12,189 | Pioneer Natural Resources Company | 2,108,575 | ||||||
Total Oil, Gas, & Consumable Fuels | 7,631,961 | |||||||
Real Estate Management & Development – 1.4% | ||||||||
13,275 | Jones Lang LaSalle Inc. | 1,524,767 | ||||||
Road & Rail – 1.0% | ||||||||
16,712 | Genesee & Wyoming Inc., (2) | 1,132,405 | ||||||
Semiconductors & Semiconductor Equipment – 1.6% | ||||||||
63,972 | Micron Technology, Inc., (2) | 1,770,105 |
30 | NUVEEN |
Shares | Description (1) | Value | ||||||
Software – 5.6% | ||||||||
18,881 | Activision Blizzard Inc. | $ | 986,532 | |||||
50,146 | CA Technologies | 1,646,293 | ||||||
8,270 | Electronic Arts Inc., (2) | 784,161 | ||||||
19,700 | Nice Systems Limited, (3) | 1,328,765 | ||||||
25,257 | Parametric Technology Corporation, (2) | 1,365,140 | ||||||
Total Software | 6,110,891 | |||||||
Specialty Retail – 1.3% | ||||||||
27,978 | Best Buy Co., Inc. | 1,449,540 | ||||||
Thrifts & Mortgage Finance – 0.9% | ||||||||
42,928 | BofI Holdings, Inc., (2), (3) | 1,025,550 | ||||||
Total Long-Term Investments (cost $90,861,927) | 108,220,362 | |||||||
Shares | Description (1) | Value | ||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.5% | ||||||||
Money Market Funds – 1.5% | ||||||||
1,676,637 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ | 1,676,637 | |||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,676,637) | 1,676,637 | |||||||
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 0.6% | ||||||||
Money Market Funds – 0.6% | ||||||||
689,293 | First American Treasury Obligations, Class Z, 0.626%, (4) | $ | 689,293 | |||||
Total Short-Term Investments (cost $689,293) | 689,293 | |||||||
Total Investments (cost $91,551,219) – 101.5% | 110,586,292 | |||||||
Other Assets Less Liabilities – (1.5)% | (1,658,669 | ) | ||||||
Net Assets – 100% | $ | 108,927,623 |
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 $1,594,392. |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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. |
See accompanying notes to financial statements.
NUVEEN | 31 |
Nuveen Small Cap Value Fund
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 97.7% | ||||||||
COMMON STOCKS – 97.7% | ||||||||
Auto Components – 2.2% | ||||||||
367,353 | Cooper Tire & Rubber | $ | 14,069,620 | |||||
882,644 | Dana Holding Corporation | 17,140,946 | ||||||
Total Auto Components | 31,210,566 | |||||||
Banks – 18.8% | ||||||||
261,859 | Bank of the Ozarks, Inc. | 12,430,447 | ||||||
531,072 | Banner Corporation | 29,315,174 | ||||||
507,520 | Berkshire Hills Bancorp, Inc. | 19,032,000 | ||||||
603,035 | Customers Bancorp Inc., (2) | 18,651,873 | ||||||
655,284 | First Busey Corporation | 19,625,756 | ||||||
524,325 | Heartland Financial USA, Inc. | 25,167,600 | ||||||
473,423 | Preferred Bank Los Angeles | 25,086,685 | ||||||
704,527 | Renasant Corporation | 29,871,945 | ||||||
1,198,932 | Sterling Bancorp. | 27,875,169 | ||||||
548,529 | Webster Financial Corporation | 27,870,758 | ||||||
334,257 | Western Alliance Bancorporation, (2) | 16,010,910 | ||||||
240,368 | Wintrust Financial Corporation | 17,032,476 | ||||||
Total Banks | 267,970,793 | |||||||
Capital Markets – 1.5% | ||||||||
299,407 | Evercore Partners Inc. | 22,081,266 | ||||||
Chemicals – 2.7% | ||||||||
685,041 | Kraton Performance Polymers Inc., (2) | 22,407,691 | ||||||
200,151 | Minerals Technologies Inc. | 15,751,884 | ||||||
Total Chemicals | 38,159,575 | |||||||
Commercial Services & Supplies – 4.6% | ||||||||
253,291 | Brinks Company | 15,552,067 | ||||||
880,866 | LSC Communications, Inc. | 22,788,003 | ||||||
602,762 | Quad Graphics Inc. | 15,828,530 | ||||||
326,374 | SP Plus Corporation, (2) | 11,243,584 | ||||||
Total Commercial Services & Supplies | 65,412,184 | |||||||
Communications Equipment – 5.3% | ||||||||
711,311 | Finisar Corporation, (2) | 16,246,343 | ||||||
369,409 | Netgear, Inc., (2) | 17,417,634 | ||||||
578,507 | Plantronics Inc. | 31,586,486 | ||||||
638,819 | Radware, Limited, (2) | 10,431,914 | ||||||
Total Communications Equipment | 75,682,377 |
32 | NUVEEN |
Shares | Description (1) | Value | ||||||
Construction & Engineering – 1.9% | ||||||||
221,448 | Emcor Group Inc. | $ | 14,557,992 | |||||
413,253 | Tutor Perini Corporation, (2) | 12,748,855 | ||||||
Total Construction & Engineering | 27,306,847 | |||||||
Diversified Telecommunication Services – 1.0% | ||||||||
2,175,346 | Vonage Holdings Corporation, (2) | 14,596,572 | ||||||
Electric Utilities – 1.7% | ||||||||
286,928 | El Paso Electric Company | 14,805,485 | ||||||
264,174 | PNM Resources Inc. | 9,840,482 | ||||||
Total Electric Utilities | 24,645,967 | |||||||
Electrical Equipment – 2.1% | ||||||||
1,463,166 | Babcock & Wilcox Enterprises, Inc., (2) | 13,709,865 | ||||||
212,793 | Regal-Beloit Corporation | 16,778,728 | ||||||
Total Electrical Equipment | 30,488,593 | |||||||
Electronic Equipment, Instruments & Comp – 1.1% | ||||||||
992,960 | Vishay Intertechnology Inc., (3) | 16,234,896 | ||||||
Energy Equipment & Services – 1.4% | ||||||||
1,601,543 | Superior Energy Services, Inc. | 19,346,639 | ||||||
Equity Real Estate Investment Trusts – 7.7% | ||||||||
1,020,543 | Brandywine Realty Trust | 17,318,615 | ||||||
165,071 | Entertainment Properties Trust | 12,002,312 | ||||||
929,394 | FelCor Lodging Trust Inc. | 7,202,804 | ||||||
610,708 | Kite Realty Group Trust | 12,434,015 | ||||||
1,570,489 | Monogram Residential Trust, Inc. | 15,987,578 | ||||||
868,665 | STAG Industrial Inc. | 22,898,009 | ||||||
1,379,434 | Summit Hotel Properties Inc. | 22,802,044 | ||||||
Total Equity Real Estate Investment Trusts | 110,645,377 | |||||||
Food & Staples Retailing – 0.9% | ||||||||
334,178 | SpartanNash Co | 12,297,750 | ||||||
Gas Utilities – 1.1% | ||||||||
231,933 | Spire, Inc. | 15,899,007 | ||||||
Health Care Equipment & Supplies – 1.0% | ||||||||
470,269 | Globus Medical Inc., Class A, (2) | 14,263,259 | ||||||
Health Care Providers & Services – 4.0% | ||||||||
291,824 | AMN Healthcare Services Inc., (2) | 11,921,010 | ||||||
730,950 | Civitas Solutions Inc., (2) | 13,010,910 | ||||||
869,370 | Pharmerica Corporation, (2) | 20,517,132 | ||||||
343,856 | Tivity Health Inc., (2) | 11,553,562 | ||||||
Total Health Care Providers & Services | 57,002,614 |
NUVEEN | 33 |
Nuveen Small Cap Value Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
Hotels, Restaurants & Leisure – 0.7% | ||||||||
59,459 | CBRL Group Inc., (3) | $ | 9,524,737 | |||||
Household Durables – 2.4% | ||||||||
448,181 | CalAtlantic Group Inc. | 16,233,116 | ||||||
659,627 | La Z Boy Inc. | 18,403,593 | ||||||
Total Household Durables | 34,636,709 | |||||||
Insurance – 6.8% | ||||||||
623,390 | American Equity Investment Life Holding Company | 14,786,811 | ||||||
328,159 | Amerisafe, Inc., (3) | 18,885,550 | ||||||
303,771 | Argo Group International Holdings Inc. | 20,033,697 | ||||||
1,334,023 | CNO Financial Group Inc. | 28,107,865 | ||||||
409,581 | Horace Mann Educators Corporation, (3) | 15,830,306 | ||||||
Total Insurance | 97,644,229 | |||||||
Internet Software & Services – 0.5% | ||||||||
776,281 | Brightcove Inc., (2) | 6,753,645 | ||||||
IT Services – 0.4% | ||||||||
190,417 | NeuStar, Inc., (2) | 6,321,844 | ||||||
Leisure Products – 1.2% | ||||||||
309,447 | Brunswick Corporation, (3) | 17,561,117 | ||||||
Machinery – 3.3% | ||||||||
444,142 | Altra Industrial Motion, Inc. | 19,608,869 | ||||||
1,023,415 | NN, Incorporated | 28,246,254 | ||||||
Total Machinery | 47,855,123 | |||||||
Media – 1.3% | ||||||||
307,723 | Meredith Corporation, (3) | 18,017,182 | ||||||
Metals & Mining – 2.3% | ||||||||
1,174,474 | Commercial Metals Company | 21,892,195 | ||||||
1,143,295 | SunCoke Energy Inc. | 10,484,015 | ||||||
Total Metals & Mining | 32,376,210 | |||||||
Mortgage Real Estate Investment Trusts – 2.2% | ||||||||
1,893,166 | Invesco Mortgage Capital Inc. | 30,877,537 | ||||||
Oil, Gas & Consumable Fuels – 4.6% | ||||||||
1,122,075 | Callon Petroleum Company Del, (2) | 13,285,368 | ||||||
649,022 | Delek US Holdings Inc. | 15,621,960 | ||||||
122,122 | PDC Energy Inc., (2) | 6,744,798 | ||||||
2,806,253 | Scorpio Tankers Inc. | 12,347,513 | ||||||
1,461,994 | WPX Energy Inc., (2) | 17,441,588 | ||||||
Total Oil, Gas & Consumable Fuels | 65,441,227 |
34 | NUVEEN |
Shares | Description (1) | Value | ||||||
Professional Services – 1.0% | ||||||||
446,578 | Korn Ferry International | $ | 14,469,127 | |||||
Semiconductors & Semiconductor Equipment – 3.2% | ||||||||
1,660,451 | Cypress Semiconductor Corporation | 23,262,919 | ||||||
279,766 | MKS Instruments Inc. | 21,891,690 | ||||||
Total Semiconductors & Semiconductor Equipment | 45,154,609 | |||||||
Software – 0.6% | ||||||||
574,555 | Synchronoss Technologies, Inc., (2) | 9,192,880 | ||||||
Specialty Retail – 1.2% | ||||||||
962,744 | Express Inc., (2) | 8,308,481 | ||||||
805,042 | Kirkland’s, Inc., (2) | 9,467,294 | ||||||
Total Specialty Retail | 17,775,775 | |||||||
Technology Hardware, Storage & Peripherals – 0.7% | ||||||||
418,236 | Super Micro Computer Inc., (2) | 10,204,958 | ||||||
Textiles, Apparel & Luxury Goods – 0.7% | ||||||||
306,982 | Culp Inc. | 9,854,122 | ||||||
Thrifts & Mortgage Finance – 4.5% | ||||||||
600,378 | Flagstar Bancorp Inc., (2) | 17,555,053 | ||||||
1,611,551 | Radian Group Inc. | 27,202,981 | ||||||
421,127 | WSFS Financial Corporation | 19,877,194 | ||||||
Total Thrifts & Mortgage Finance | 64,635,228 | |||||||
Water Utilities – 1.1% | ||||||||
436,273 | California Water Service Group | 15,574,946 | ||||||
Total Long-Term Investments (cost $1,298,728,377) | 1,397,115,487 | |||||||
Shares | Description (1) | Value | ||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.0% | ||||||||
Money Market Funds – 1.0% | ||||||||
13,608,050 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ | 13,608,050 | |||||
Total Investments Purchased with Collateral from Securities Lending (cost $13,608,050) | 13,608,050 | |||||||
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 1.7% | ||||||||
Money Market Funds – 1.7% | ||||||||
23,850,416 | First American Treasury Obligations Fund, Class Z, 0.626%, (4) | $ | 23,850,416 | |||||
Total Short-Term Investments (cost $23,850,416) | 23,850,416 | |||||||
Total Investments (cost $1,322,578,793) – 100.4% | 1,434,573,953 | |||||||
Other Assets Less Liabilities – (0.4)% | (6,378,313 | ) | ||||||
Net Assets – 100% | $ | 1,428,195,640 |
NUVEEN | 35 |
Nuveen Small Cap Value Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, 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 $12,863,269. |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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. |
See accompanying notes to financial statements.
36 | NUVEEN |
Assets and Liabilities | April 30, 2017 (Unaudited) |
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $756,119,463, $90,861,927 and $1,298,728,377, respectively) | $ | 1,056,864,226 | $ | 108,220,362 | $ | 1,397,115,487 | ||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | — | 1,676,637 | 13,608,050 | |||||||||
Short-term investments, at value (cost approximates value) | 7,748,205 | 689,293 | 23,850,416 | |||||||||
Receivable for: | ||||||||||||
Dividends | 1,189,904 | 83,497 | 283,163 | |||||||||
Due from broker | 246 | 706 | 11,432 | |||||||||
Interest | 5,694 | 465 | 11,856 | |||||||||
Investments sold | 5,269,860 | 38,421 | 7,260,890 | |||||||||
Shares sold | 1,258,405 | 144,982 | 28,868,620 | |||||||||
Other assets | 97,823 | 32,910 | 96,295 | |||||||||
Total assets | 1,072,434,363 | 110,887,273 | 1,471,106,209 | |||||||||
Liabilities | ||||||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | — | 1,676,637 | 13,608,050 | |||||||||
Investments purchased | 4,936,741 | 26,922 | 25,197,442 | |||||||||
Shares redeemed | 1,595,708 | 112,822 | 2,350,527 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 588,866 | 55,185 | 1,043,689 | |||||||||
Directors fees | 66,214 | 6,954 | 14,006 | |||||||||
12b-1 distribution and service fees | 106,793 | 16,571 | 122,569 | |||||||||
Other | 470,662 | 64,559 | 574,286 | |||||||||
Total liabilities | 7,764,984 | 1,959,650 | 42,910,569 | |||||||||
Net assets | $ | 1,064,669,379 | $ | 108,927,623 | $ | 1,428,195,640 | ||||||
Class A Shares | ||||||||||||
Net assets | $ | 272,514,198 | $ | 37,910,420 | $ | 277,180,934 | ||||||
Shares outstanding | 18,356,018 | 974,855 | 11,467,877 | |||||||||
Net asset value (“NAV”) per share | $ | 14.85 | $ | 38.89 | $ | 24.17 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | $ | 15.76 | $ | 41.26 | $ | 25.64 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 43,284,065 | $ | 7,992,759 | $ | 61,975,940 | ||||||
Shares outstanding | 2,963,861 | 215,749 | 3,012,256 | |||||||||
NAV and offering price per share | $ | 14.60 | $ | 37.05 | $ | 20.57 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 35,123,358 | $ | 5,532,998 | $ | 40,655,705 | ||||||
Shares outstanding | 2,375,690 | 143,355 | 1,719,462 | |||||||||
NAV and offering price per share | $ | 14.78 | $ | 38.60 | $ | 23.64 | ||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 50,906,974 | $ | — | $ | 41,266,812 | ||||||
Shares outstanding | 3,374,627 | — | 1,651,973 | |||||||||
NAV and offering price per share | $ | 15.09 | $ | — | $ | 24.98 | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 662,840,784 | �� | $ | 57,491,446 | $ | 1,007,116,249 | |||||
Shares outstanding | 44,135,954 | 1,474,416 | 40,279,439 | |||||||||
NAV and offering price per share | $ | 15.02 | $ | 38.99 | $ | 25.00 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 703,255,403 | $ | 88,563,534 | $ | 1,295,932,653 | ||||||
Undistributed (Over-distribution of) net investment income | (2,613,761 | ) | 351,779 | 899,347 | ||||||||
Accumulated net realized gain (loss) | 63,282,974 | 2,653,875 | 32,976,530 | |||||||||
Net unrealized appreciation (depreciation) | 300,744,763 | 17,358,435 | 98,387,110 | |||||||||
Net assets | $ | 1,064,669,379 | $ | 108,927,623 | $ | 1,428,195,640 | ||||||
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.
NUVEEN | 37 |
Operations | Six Months Ended April 30, 2017 (Unaudited) |
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Investment Income | ||||||||||||
Dividend and interest income (net of tax withheld of $21,427, $946 and $7,158, respectively) | $ | 12,911,110 | $ | 947,123 | $ | 8,350,145 | ||||||
Securities lending income, net | 6,171 | 4,294 | 54,688 | |||||||||
Total investment income | 12,917,281 | 951,417 | 8,404,833 | |||||||||
Expenses | ||||||||||||
Management fees | 3,574,543 | 429,084 | 4,082,303 | |||||||||
12b-1 service fees – Class A Shares | 341,365 | 46,558 | 313,544 | |||||||||
12b-1 distribution and service fees – Class C Shares | 219,606 | 38,303 | 226,760 | |||||||||
12b-1 distribution and service fees – Class R3 Shares | 86,309 | 13,645 | 91,939 | |||||||||
Shareholder servicing agent fees | 597,883 | 72,164 | 760,731 | |||||||||
Custodian fees | 54,007 | 7,884 | 45,223 | |||||||||
Directors fees | 16,576 | 1,668 | 16,524 | |||||||||
Professional fees | 39,061 | 16,906 | 40,612 | |||||||||
Shareholder reporting expenses | 34,741 | 10,398 | 103,591 | |||||||||
Federal and state registration fees | 47,041 | 35,541 | 165,026 | |||||||||
Other | 8,092 | 1,803 | 3,789 | |||||||||
Total expenses before fee waiver/expense reimbursement | 5,019,224 | 673,954 | 5,850,042 | |||||||||
Fee waiver/expense reimbursement | — | (81,694 | ) | (129,012 | ) | |||||||
Net expenses | 5,019,224 | 592,260 | 5,721,030 | |||||||||
Net investment income (loss) | 7,898,057 | 359,157 | 2,683,803 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from investments and foreign currency | 65,710,698 | 2,709,990 | 33,327,432 | |||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | 67,814,996 | 11,100,292 | 74,161,441 | |||||||||
Net realized and unrealized gain (loss) | 133,525,694 | 13,810,282 | 107,488,873 | |||||||||
Net increase (decrease) in net assets from operations | $ | 141,423,751 | $ | 14,169,439 | $ | 110,172,676 |
See accompanying notes to financial statements.
38 | NUVEEN |
Changes in Net Assets | (Unaudited) |
Dividend Value | ||||||||
Six Months Ended 4/30/17 | Year Ended | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 7,898,057 | $ | 21,410,362 | ||||
Net realized gain (loss) from investments and foreign currency | 65,710,698 | 162,436,627 | ||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | 67,814,996 | (129,987,502 | ) | |||||
Net increase (decrease) in net assets from operations | 141,423,751 | 53,859,487 | ||||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A Shares | (2,576,522 | ) | (5,715,430 | ) | ||||
Class C Shares | (232,391 | ) | (612,225 | ) | ||||
Class R3 Shares | (325,212 | ) | (624,815 | ) | ||||
Class R6 Shares | (536,718 | ) | (1,227,231 | ) | ||||
Class I Shares | (6,911,598 | ) | (17,539,508 | ) | ||||
From accumulated net realized gains: | ||||||||
Class A Shares | (36,774,373 | ) | (21,268,193 | ) | ||||
Class C Shares | (5,988,084 | ) | (3,676,882 | ) | ||||
Class R3 Shares | (4,635,129 | ) | (2,990,313 | ) | ||||
Class R6 Shares | (6,919,343 | ) | (4,000,310 | ) | ||||
Class I Shares | (89,943,645 | ) | (61,767,745 | ) | ||||
Decrease in net assets from distributions to shareholders | (154,843,015 | ) | (119,422,652 | ) | ||||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 117,693,101 | 119,078,342 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 121,684,937 | 83,621,803 | ||||||
239,378,038 | 202,700,145 | |||||||
Cost of shares redeemed | (201,157,120 | ) | (490,421,841 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | 38,220,918 | (287,721,696 | ) | |||||
Net increase (decrease) in net assets | 24,801,654 | (353,284,861 | ) | |||||
Net assets at the beginning of period | 1,039,867,725 | 1,393,152,586 | ||||||
Net assets at the end of period | $ | 1,064,669,379 | $ | 1,039,867,725 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (2,613,761) | $ | 70,623 |
See accompanying notes to financial statements.
NUVEEN | 39 |
Statement of Changes in Net Assets (Unaudited) (continued)
Mid Cap Value | Small Cap Value | |||||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 359,157 | $ | 995,101 | $ | 2,683,803 | $ | 2,704,701 | ||||||||||||
Net realized gain (loss) from investments and foreign currency | 2,709,990 | 3,430,012 | 33,327,432 | 18,233,821 | ||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | 11,100,292 | (1,529,551 | ) | 74,161,441 | 5,372,607 | |||||||||||||||
Net increase (decrease) in net assets from operations | 14,169,439 | 2,895,562 | 110,172,676 | 26,311,129 | ||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | (315,526 | ) | (97,894 | ) | (919,855 | ) | (28,208 | ) | ||||||||||||
Class C Shares | (11,958 | ) | — | — | — | |||||||||||||||
Class R3 Shares | (34,019 | ) | (822 | ) | (63,889 | ) | — | |||||||||||||
Class R6 Shares1 | — | — | (140,387 | ) | — | |||||||||||||||
Class I Shares | (617,928 | ) | (341,526 | ) | (3,306,782 | ) | (375,766 | ) | ||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | (979,412 | ) | (1,108,462 | ) | (4,635,282 | ) | (862,983 | ) | ||||||||||||
Class C Shares | (208,497 | ) | (233,340 | ) | (896,363 | ) | (124,053 | ) | ||||||||||||
Class R3 Shares | (147,970 | ) | (188,365 | ) | (729,502 | ) | (232,444 | ) | ||||||||||||
Class R6 Shares1 | — | — | (448,217 | ) | (1,795 | ) | ||||||||||||||
Class I Shares | (1,529,158 | ) | (2,009,699 | ) | (10,583,472 | ) | (1,680,323 | ) | ||||||||||||
Decrease in net assets from distributions to shareholders | (3,844,468 | ) | (3,980,108 | ) | (21,723,749 | ) | (3,305,572 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 9,140,214 | 7,781,027 | 945,385,216 | 557,945,540 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 2,797,219 | 2,825,124 | 17,976,778 | 2,834,177 | ||||||||||||||||
11,937,433 | 10,606,151 | 963,361,994 | 560,779,717 | |||||||||||||||||
Cost of shares redeemed | (12,931,772 | ) | (28,457,575 | ) | (233,764,537 | ) | (132,358,905 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (994,339 | ) | (17,851,424 | ) | 729,597,457 | 428,420,812 | ||||||||||||||
Net increase (decrease) in net assets | 9,330,632 | (18,935,970 | ) | 818,046,384 | 451,426,369 | |||||||||||||||
Net assets at the beginning of period | 99,596,991 | 118,532,961 | 610,149,256 | 158,722,887 | ||||||||||||||||
Net assets at the end of period | $ | 108,927,623 | $ | 99,596,991 | $ | 1,428,195,640 | $ | 610,149,256 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 351,779 | $ | 972,053 | $ | 899,347 | $ | 2,646,457 |
1 | Class R6 Shares for Small Cap Value were established on June 30, 2016. |
See accompanying notes to financial statements.
40 | NUVEEN |
THIS PAGE INTENTIONALLY LEFT BLANK
NUVEEN | 41 |
Highlights (Unaudited)
Dividend Value
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date) Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Accumulated Net Realized | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (12/92) |
| |||||||||||||||||||||||||||||||||||
2017(f) | $ | 15.12 | $ | 0.10 | $ | 1.93 | $ | 2.03 | $ | (0.13 | ) | $ | (2.17 | ) | $ | (2.30 | ) | $ | 14.85 | |||||||||||||||||
2016 | 15.81 | 0.25 | 0.48 | 0.73 | (0.30 | ) | (1.12 | ) | (1.42 | ) | 15.12 | |||||||||||||||||||||||||
2015 | 17.44 | 0.28 | (0.44 | ) | (0.16 | ) | (0.34 | ) | (1.13 | ) | (1.47 | ) | 15.81 | |||||||||||||||||||||||
2014 | 17.79 | 0.37 | 1.36 | 1.73 | (0.38 | ) | (1.70 | ) | (2.08 | ) | 17.44 | |||||||||||||||||||||||||
2013 | 14.60 | 0.30 | 3.59 | 3.89 | (0.30 | ) | (0.40 | ) | (0.70 | ) | 17.79 | |||||||||||||||||||||||||
2012 | 13.05 | 0.27 | 1.59 | 1.86 | (0.31 | ) | — | (0.31 | ) | 14.60 | ||||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 14.90 | 0.04 | 1.91 | 1.95 | (0.08 | ) | (2.17 | ) | (2.25 | ) | 14.60 | |||||||||||||||||||||||||
2016 | 15.60 | 0.14 | 0.47 | 0.61 | (0.19 | ) | (1.12 | ) | (1.31 | ) | 14.90 | |||||||||||||||||||||||||
2015 | 17.23 | 0.16 | (0.44 | ) | (0.28 | ) | (0.22 | ) | (1.13 | ) | (1.35 | ) | 15.60 | |||||||||||||||||||||||
2014 | 17.59 | 0.24 | 1.34 | 1.58 | (0.24 | ) | (1.70 | ) | (1.94 | ) | 17.23 | |||||||||||||||||||||||||
2013 | 14.42 | 0.18 | 3.57 | 3.75 | (0.18 | ) | (0.40 | ) | (0.58 | ) | 17.59 | |||||||||||||||||||||||||
2012 | 12.92 | 0.17 | 1.54 | 1.71 | (0.21 | ) | — | (0.21 | ) | 14.42 | ||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 15.08 | 0.08 | 1.92 | 2.00 | (0.13 | ) | (2.17 | ) | (2.30 | ) | 14.78 | |||||||||||||||||||||||||
2016 | 15.77 | 0.22 | 0.47 | 0.69 | (0.26 | ) | (1.12 | ) | (1.38 | ) | 15.08 | |||||||||||||||||||||||||
2015 | 17.41 | 0.24 | (0.45 | ) | (0.21 | ) | (0.30 | ) | (1.13 | ) | (1.43 | ) | 15.77 | |||||||||||||||||||||||
2014 | 17.75 | 0.33 | 1.36 | 1.69 | (0.33 | ) | (1.70 | ) | (2.03 | ) | 17.41 | |||||||||||||||||||||||||
2013 | 14.58 | 0.26 | 3.57 | 3.83 | (0.26 | ) | (0.40 | ) | (0.66 | ) | 17.75 | |||||||||||||||||||||||||
2012 | 13.03 | 0.24 | 1.59 | 1.83 | (0.28 | ) | — | (0.28 | ) | 14.58 | ||||||||||||||||||||||||||
Class R6 (2/13) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 15.32 | 0.13 | 1.97 | 2.10 | (0.16 | ) | (2.17 | ) | (2.33 | ) | 15.09 | |||||||||||||||||||||||||
2016 | 15.99 | 0.30 | 0.49 | 0.79 | (0.34 | ) | (1.12 | ) | (1.46 | ) | 15.32 | |||||||||||||||||||||||||
2015 | 17.62 | 0.34 | (0.45 | ) | (0.11 | ) | (0.39 | ) | (1.13 | ) | (1.52 | ) | 15.99 | |||||||||||||||||||||||
2014 | 17.93 | 0.43 | 1.38 | 1.81 | (0.42 | ) | (1.70 | ) | (2.12 | ) | 17.62 | |||||||||||||||||||||||||
2013(d) | 15.36 | 0.22 | 2.60 | 2.82 | (0.25 | ) | — | (0.25 | ) | 17.93 | ||||||||||||||||||||||||||
Class I (8/94) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 15.27 | 0.12 | 1.95 | 2.07 | (0.15 | ) | (2.17 | ) | (2.32 | ) | 15.02 | |||||||||||||||||||||||||
2016 | 15.95 | 0.29 | 0.49 | 0.78 | (0.34 | ) | (1.12 | ) | (1.46 | ) | 15.27 | |||||||||||||||||||||||||
2015 | 17.60 | 0.33 | (0.46 | ) | (0.13 | ) | (0.39 | ) | (1.13 | ) | (1.52 | ) | 15.95 | |||||||||||||||||||||||
2014 | 17.93 | 0.42 | 1.37 | 1.79 | (0.42 | ) | (1.70 | ) | (2.12 | ) | 17.60 | |||||||||||||||||||||||||
2013 | 14.72 | 0.35 | 3.61 | 3.96 | (0.35 | ) | (0.40 | ) | (0.75 | ) | 17.93 | |||||||||||||||||||||||||
2012 | 13.16 | 0.31 | 1.60 | 1.91 | (0.35 | ) | — | (0.35 | ) | 14.72 |
42 | NUVEEN |
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||||||
13.98 | % | $ | 272,514 | 1.07 | %* | 1.35 | %* | 1.07 | %* | 1.35 | %* | 24 | % | |||||||||||||||||||||
5.33 | 259,457 | 1.14 | 1.69 | 1.14 | 1.69 | 67 | ||||||||||||||||||||||||||||
(0.87 | ) | 310,055 | 1.15 | 1.72 | 1.15 | 1.72 | 53 | |||||||||||||||||||||||||||
10.78 | 371,703 | 1.15 | 2.19 | 1.15 | 2.19 | 27 | ||||||||||||||||||||||||||||
27.72 | 384,226 | 1.13 | 1.88 | 1.12 | 1.89 | 44 | ||||||||||||||||||||||||||||
14.31 | 273,317 | 1.16 | 1.95 | 1.16 | 1.95 | 24 | ||||||||||||||||||||||||||||
13.54 | 43,284 | 1.83 | * | 0.60 | * | 1.83 | * | 0.60 | * | 24 | ||||||||||||||||||||||||
4.46 | 43,097 | 1.89 | 0.94 | 1.89 | 0.94 | | 67 | | ||||||||||||||||||||||||||
(1.59 | ) | 53,507 | 1.90 | 0.98 | 1.90 | 0.98 | 53 | |||||||||||||||||||||||||||
10.01 | 65,366 | 1.90 | 1.43 | 1.90 | 1.43 | 27 | ||||||||||||||||||||||||||||
26.95 | 59,753 | 1.88 | 1.09 | 1.87 | 1.10 | 44 | ||||||||||||||||||||||||||||
13.29 | 29,234 | 1.91 | 1.21 | 1.91 | 1.21 | 24 | ||||||||||||||||||||||||||||
13.80 | 35,123 | 1.32 | * | 1.08 | * | 1.32 | * | 1.08 | * | 24 | ||||||||||||||||||||||||
5.01 | 31,758 | 1.39 | 1.49 | 1.39 | 1.49 | 67 | ||||||||||||||||||||||||||||
(1.12 | ) | 42,618 | 1.40 | 1.45 | 1.40 | 1.45 | 53 | |||||||||||||||||||||||||||
10.59 | 48,476 | 1.40 | 1.92 | 1.40 | 1.92 | 27 | ||||||||||||||||||||||||||||
27.30 | 38,589 | 1.38 | 1.61 | 1.37 | 1.62 | 44 | ||||||||||||||||||||||||||||
14.13 | 21,649 | 1.41 | 1.70 | 1.41 | 1.70 | 24 | ||||||||||||||||||||||||||||
14.23 | 50,907 | 0.72 | * | 1.70 | * | 0.72 | * | 1.70 | * | 24 | ||||||||||||||||||||||||
5.63 | 50,588 | 0.79 | 2.04 | 0.79 | 2.04 | 67 | ||||||||||||||||||||||||||||
(0.51 | ) | 56,123 | 0.81 | 2.03 | 0.81 | 2.03 | 53 | |||||||||||||||||||||||||||
11.23 | 62,309 | 0.81 | 2.52 | 0.81 | 2.52 | 27 | ||||||||||||||||||||||||||||
18.52 | 67,620 | 0.80 | * | 1.98 | * | 0.80 | * | 1.98 | * | 44 | ||||||||||||||||||||||||
14.13 | 662,841 | 0.83 | * | 1.60 | * | 0.83 | * | 1.60 | * | 24 | ||||||||||||||||||||||||
5.56 | 654,967 | 0.89 | 1.95 | 0.89 | 1.95 | 67 | ||||||||||||||||||||||||||||
(0.64 | ) | 930,850 | 0.90 | 1.99 | 0.90 | 1.99 | 53 | |||||||||||||||||||||||||||
11.11 | 1,178,972 | 0.90 | 2.42 | 0.90 | 2.42 | 27 | ||||||||||||||||||||||||||||
27.96 | 1,151,408 | 0.88 | 2.16 | 0.87 | 2.16 | 44 | ||||||||||||||||||||||||||||
14.65 | 1,072,335 | 0.91 | 2.23 | 0.91 | 2.23 | 24 |
(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 February 28, 2013 (commencement of operations) through October 31, 2013. |
(e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(f) | For the six months ended April 30, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 43 |
Financial Highlights (Unaudited) (continued)
Mid Cap Value
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||||||
2017(e) | $ | 35.23 | $ | 0.11 | $ | 4.89 | $ | 5.00 | $ | (0.32 | ) | $ | (1.02 | ) | $ | (1.34 | ) | $ | 38.89 | |||||||||||||||||
2016 | 35.39 | 0.30 | 0.72 | 1.02 | (0.09 | ) | (1.09 | ) | (1.18 | ) | 35.23 | |||||||||||||||||||||||||
2015 | 35.37 | 0.10 | 0.22 | 0.32 | (0.30 | ) | — | (0.30 | ) | 35.39 | ||||||||||||||||||||||||||
2014 | 31.00 | 0.23 | 4.30 | 4.53 | (0.16 | ) | — | (0.16 | ) | 35.37 | ||||||||||||||||||||||||||
2013 | 23.22 | 0.12 | 7.91 | 8.03 | (0.25 | ) | — | (0.25 | ) | 31.00 | ||||||||||||||||||||||||||
2012 | 21.83 | 0.18 | 1.35 | 1.53 | (0.14 | ) | — | (0.14 | ) | 23.22 | ||||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 33.50 | (0.03 | ) | 4.66 | 4.63 | (0.06 | ) | (1.02 | ) | (1.08 | ) | 37.05 | ||||||||||||||||||||||||
2016 | 33.86 | 0.04 | 0.69 | 0.73 | — | (1.09 | ) | (1.09 | ) | 33.50 | ||||||||||||||||||||||||||
2015 | 33.86 | (0.16 | ) | 0.20 | 0.04 | (0.04 | ) | — | (0.04 | ) | 33.86 | |||||||||||||||||||||||||
2014 | 29.76 | (0.02 | ) | 4.12 | 4.10 | — | — | — | 33.86 | |||||||||||||||||||||||||||
2013 | 22.29 | (0.08 | ) | 7.62 | 7.54 | (0.07 | ) | — | (0.07 | ) | 29.76 | |||||||||||||||||||||||||
2012 | 20.99 | 0.01 | 1.29 | 1.30 | — | — | — | 22.29 | ||||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 34.94 | 0.07 | 4.84 | 4.91 | (0.23 | ) | (1.02 | ) | (1.25 | ) | 38.60 | |||||||||||||||||||||||||
2016 | 35.17 | 0.21 | 0.65 | 0.86 | — | (1.09 | ) | (1.09 | ) | 34.94 | ||||||||||||||||||||||||||
2015 | 35.15 | 0.02 | 0.21 | 0.23 | (0.21 | ) | — | (0.21 | ) | 35.17 | ||||||||||||||||||||||||||
2014 | 30.82 | 0.15 | 4.27 | 4.42 | (0.09 | ) | — | (0.09 | ) | 35.15 | ||||||||||||||||||||||||||
2013 | 23.08 | 0.06 | 7.87 | 7.93 | (0.19 | ) | — | (0.19 | ) | 30.82 | ||||||||||||||||||||||||||
2012 | 21.70 | 0.12 | 1.33 | 1.45 | (0.07 | ) | — | (0.07 | ) | 23.08 | ||||||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 35.36 | 0.16 | 4.90 | 5.06 | (0.41 | ) | (1.02 | ) | (1.43 | ) | 38.99 | |||||||||||||||||||||||||
2016 | 35.52 | 0.38 | 0.73 | 1.11 | (0.18 | ) | (1.09 | ) | (1.27 | ) | 35.36 | |||||||||||||||||||||||||
2015 | 35.50 | 0.20 | 0.20 | 0.40 | (0.38 | ) | — | (0.38 | ) | 35.52 | ||||||||||||||||||||||||||
2014 | 31.10 | 0.32 | 4.31 | 4.63 | (0.23 | ) | — | (0.23 | ) | 35.50 | ||||||||||||||||||||||||||
2013 | 23.29 | 0.19 | 7.93 | 8.12 | (0.31 | ) | — | (0.31 | ) | 31.10 | ||||||||||||||||||||||||||
2012 | 21.99 | 0.24 | 1.33 | 1.57 | (0.27 | ) | — | (0.27 | ) | 23.29 |
44 | 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(d) | ||||||||||||||||||||||||||||
14.34 | % | $ | 37,910 | 1.32 | %* | 0.45 | %* | 1.17 | %* | 0.60 | %* | 19 | % | |||||||||||||||||||||
3.12 | 34,230 | 1.39 | 0.73 | 1.26 | 0.86 | 44 | ||||||||||||||||||||||||||||
0.89 | 36,378 | 1.41 | 0.20 | 1.32 | 0.29 | 111 | ||||||||||||||||||||||||||||
14.65 | 39,858 | 1.42 | 0.61 | 1.34 | 0.69 | 127 | ||||||||||||||||||||||||||||
34.93 | 35,719 | 1.39 | 0.40 | 1.33 | 0.45 | 118 | ||||||||||||||||||||||||||||
7.03 | 35,633 | 1.49 | 0.58 | 1.28 | 0.79 | 140 | ||||||||||||||||||||||||||||
13.93 | 7,993 | 2.07 | * | (0.30 | )* | 1.92 | * | (0.15 | )* | 19 | ||||||||||||||||||||||||
2.32 | 6,529 | 2.14 | (0.02 | ) | 2.01 | 0.11 | 44 | |||||||||||||||||||||||||||
0.15 | 7,379 | 2.16 | (0.55 | ) | 2.07 | (0.46 | ) | 111 | ||||||||||||||||||||||||||
13.78 | 8,066 | 2.17 | (0.14 | ) | 2.09 | (0.06 | ) | 127 | ||||||||||||||||||||||||||
33.94 | 8,042 | 2.14 | (0.35 | ) | 2.08 | (0.29 | ) | 118 | ||||||||||||||||||||||||||
6.19 | 7,855 | 2.24 | (0.17 | ) | 2.02 | 0.05 | 140 | |||||||||||||||||||||||||||
14.20 | 5,533 | 1.57 | * | 0.22 | * | 1.42 | * | 0.37 | * | 19 | ||||||||||||||||||||||||
2.86 | 5,206 | 1.64 | 0.48 | 1.51 | 0.61 | 44 | ||||||||||||||||||||||||||||
0.65 | 6,942 | 1.66 | (0.04 | ) | 1.57 | 0.05 | 111 | |||||||||||||||||||||||||||
14.35 | 8,401 | 1.67 | 0.37 | 1.59 | 0.46 | 127 | ||||||||||||||||||||||||||||
34.63 | 8,401 | 1.64 | 0.16 | 1.58 | 0.22 | 118 | ||||||||||||||||||||||||||||
6.70 | 9,576 | 1.74 | 0.31 | 1.53 | 0.52 | 140 | ||||||||||||||||||||||||||||
14.47 | 57,491 | 1.07 | * | 0.70 | * | 0.92 | * | 0.85 | * | 19 | ||||||||||||||||||||||||
3.38 | 53,631 | 1.14 | 0.98 | 1.01 | 1.11 | 44 | ||||||||||||||||||||||||||||
1.12 | 67,834 | 1.16 | 0.46 | 1.07 | 0.55 | 111 | ||||||||||||||||||||||||||||
14.95 | 75,981 | 1.17 | 0.86 | 1.09 | 0.94 | 127 | ||||||||||||||||||||||||||||
35.29 | 90,212 | 1.13 | 0.66 | 1.08 | 0.71 | 118 | ||||||||||||||||||||||||||||
7.23 | 106,276 | 1.24 | 0.82 | 1.03 | 1.03 | 140 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
* | Annualized |
See accompanying notes to financial statements.
NUVEEN | 45 |
Financial Highlights (Unaudited) (continued)
Small Cap Value
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (8/94) |
| |||||||||||||||||||||||||||||||||||
2017(f) | $ | 20.98 | $ | 0.05 | $ | 3.74 | $ | 3.79 | $ | (0.09 | ) | $ | (0.51 | ) | $ | (0.60 | ) | $ | 24.17 | |||||||||||||||||
2016 | 19.95 | 0.14 | 1.20 | 1.34 | (0.01 | ) | (0.30 | ) | (0.31 | ) | 20.98 | |||||||||||||||||||||||||
2015 | 18.55 | 0.07 | 1.40 | 1.47 | (0.07 | ) | — | (0.07 | ) | 19.95 | ||||||||||||||||||||||||||
2014 | 16.98 | 0.05 | 1.58 | 1.63 | (0.06 | ) | — | (0.06 | ) | 18.55 | ||||||||||||||||||||||||||
2013 | 12.63 | 0.06 | 4.34 | 4.40 | (0.05 | ) | — | (0.05 | ) | 16.98 | ||||||||||||||||||||||||||
2012 | 11.30 | 0.05 | 1.28 | 1.33 | — | — | — | 12.63 | ||||||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 17.92 | (0.04 | ) | 3.20 | 3.16 | — | (0.51 | ) | (0.51 | ) | 20.57 | |||||||||||||||||||||||||
2016 | 17.20 | (0.01 | ) | 1.03 | 1.02 | — | (0.30 | ) | (0.30 | ) | 17.92 | |||||||||||||||||||||||||
2015 | 16.06 | (0.07 | ) | 1.21 | 1.14 | — | — | — | 17.20 | |||||||||||||||||||||||||||
2014 | 14.76 | (0.07 | ) | 1.37 | 1.30 | — | — | — | 16.06 | |||||||||||||||||||||||||||
2013 | 11.02 | (0.05 | ) | 3.79 | 3.74 | — | — | — | 14.76 | |||||||||||||||||||||||||||
2012 | 9.93 | (0.04 | ) | 1.13 | 1.09 | — | — | — | 11.02 | |||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 20.51 | 0.02 | 3.66 | 3.68 | (0.04 | ) | (0.51 | ) | (0.55 | ) | 23.64 | |||||||||||||||||||||||||
2016 | 19.56 | 0.09 | 1.16 | 1.25 | — | (0.30 | ) | (0.30 | ) | 20.51 | ||||||||||||||||||||||||||
2015 | 18.19 | 0.02 | 1.38 | 1.40 | (0.03 | ) | — | (0.03 | ) | 19.56 | ||||||||||||||||||||||||||
2014 | 16.65 | 0.01 | 1.55 | 1.56 | (0.02 | ) | — | (0.02 | ) | 18.19 | ||||||||||||||||||||||||||
2013 | 12.39 | 0.01 | 4.27 | 4.28 | (0.02 | ) | — | (0.02 | ) | 16.65 | ||||||||||||||||||||||||||
2012 | 11.11 | 0.02 | 1.26 | 1.28 | — | — | — | 12.39 | ||||||||||||||||||||||||||||
Class R6 (6/16) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 21.71 | 0.09 | 3.85 | 3.94 | (0.16 | ) | (0.51 | ) | (0.67 | ) | 24.98 | |||||||||||||||||||||||||
2016(d) | 21.08 | 0.07 | 0.56 | 0.63 | — | — | * | — | * | 21.71 | ||||||||||||||||||||||||||
Class I (8/94) |
| |||||||||||||||||||||||||||||||||||
2017(f) | 21.70 | 0.08 | 3.88 | 3.96 | (0.15 | ) | (0.51 | ) | (0.66 | ) | 25.00 | |||||||||||||||||||||||||
2016 | 20.63 | 0.19 | 1.24 | 1.43 | (0.06 | ) | (0.30 | ) | (0.36 | ) | 21.70 | |||||||||||||||||||||||||
2015 | 19.18 | 0.12 | 1.45 | 1.57 | (0.12 | ) | — | (0.12 | ) | 20.63 | ||||||||||||||||||||||||||
2014 | 17.55 | 0.10 | 1.63 | 1.73 | (0.10 | ) | — | (0.10 | ) | 19.18 | ||||||||||||||||||||||||||
2013 | 13.06 | 0.10 | 4.48 | 4.58 | (0.09 | ) | — | (0.09 | ) | 17.55 | ||||||||||||||||||||||||||
2012 | 11.65 | 0.08 | 1.33 | 1.41 | — | — | — | 13.06 |
46 | 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) | ||||||||||||||||||||||||||||
18.08 | % | $ | 277,181 | 1.26 | %** | 0.39 | %** | 1.23 | %** | 0.41 | %** | 18 | % | |||||||||||||||||||||
6.85 | 167,840 | 1.34 | 0.65 | 1.30 | 0.68 | 40 | ||||||||||||||||||||||||||||
7.95 | 48,656 | 1.40 | 0.32 | 1.39 | 0.34 | 49 | ||||||||||||||||||||||||||||
9.61 | 44,739 | 1.47 | 0.25 | 1.43 | 0.28 | 55 | ||||||||||||||||||||||||||||
34.98 | 45,225 | 1.47 | 0.37 | 1.46 | 0.38 | 56 | ||||||||||||||||||||||||||||
11.77 | 32,208 | 1.58 | 0.26 | 1.46 | 0.39 | 46 | ||||||||||||||||||||||||||||
17.62 | 61,976 | 2.01 | ** | (0.39 | )** | 1.98 | ** | (0.37 | )** | 18 | ||||||||||||||||||||||||
6.08 | 26,815 | 2.09 | (0.11 | ) | 2.05 | (0.08 | ) | 40 | ||||||||||||||||||||||||||
7.10 | 4,507 | 2.15 | (0.44 | ) | 2.14 | (0.42 | ) | 49 | ||||||||||||||||||||||||||
8.81 | 3,008 | 2.21 | (0.51 | ) | 2.18 | (0.48 | ) | 55 | ||||||||||||||||||||||||||
33.94 | 3,297 | 2.22 | (0.43 | ) | 2.20 | (0.42 | ) | 56 | ||||||||||||||||||||||||||
10.98 | 1,367 | 2.34 | (0.47 | ) | 2.21 | (0.34 | ) | 46 | ||||||||||||||||||||||||||
17.95 | 40,656 | 1.51 | ** | 0.15 | ** | 1.48 | ** | 0.17 | ** | 18 | ||||||||||||||||||||||||
6.58 | 26,510 | 1.59 | 0.43 | 1.56 | 0.46 | 40 | ||||||||||||||||||||||||||||
7.62 | 14,516 | 1.65 | 0.07 | 1.64 | 0.09 | 49 | ||||||||||||||||||||||||||||
9.38 | 11,530 | 1.72 | 0.01 | 1.68 | 0.04 | 55 | ||||||||||||||||||||||||||||
34.59 | 8,549 | 1.72 | 0.06 | 1.71 | 0.07 | 56 | ||||||||||||||||||||||||||||
11.52 | 2,653 | 1.83 | 0.01 | 1.71 | 0.14 | 46 | ||||||||||||||||||||||||||||
18.15 | 41,267 | 0.87 | ** | 0.74 | ** | 0.84 | ** | 0.76 | ** | 18 | ||||||||||||||||||||||||
3.00 | 19,967 | 0.89 | ** | 0.85 | ** | 0.83 | ** | 0.91 | ** | 40 | ||||||||||||||||||||||||
18.24 | 1,007,116 | 1.01 | ** | 0.60 | ** | 0.98 | ** | 0.62 | ** | 18 | ||||||||||||||||||||||||
7.09 | 369,016 | 1.09 | 0.90 | 1.05 | 0.93 | 40 | ||||||||||||||||||||||||||||
8.22 | 91,044 | 1.15 | 0.58 | 1.14 | 0.59 | 49 | ||||||||||||||||||||||||||||
9.89 | 71,521 | 1.22 | 0.51 | 1.18 | 0.54 | 55 | ||||||||||||||||||||||||||||
35.34 | 48,281 | 1.22 | 0.64 | 1.21 | 0.65 | 56 | ||||||||||||||||||||||||||||
12.02 | 41,444 | 1.34 | 0.53 | 1.21 | 0.66 | 46 |
(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 June 30, 2016 (commencement of operations) through October 31, 2016. |
(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 April 30, 2017. |
* | Round to less than $(0.01). |
** | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 47 |
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 Dividend Value Fund (“Dividend Value”), Nuveen Mid Cap Value Fund (“Mid Cap Value”) and Nuveen Small Cap Value Fund (“Small Cap Value”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
The end of the reporting period for the Funds is April 30, 2017, and the period covered by these Notes to Financial Statements is the six months ended April 30, 2017 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, 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
Dividend Value’s investment objective is long-term growth of capital and income while Mid Cap Value’s and Small Cap Value’s is capital appreciation.
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.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. 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, if any, are declared and distributed to shareholders annually (except for Dividend Value, which are declared and distributed to shareholders quarterly). 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.
48 | NUVEEN |
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 fee and a 0.25% annual 12b-1 service fee. Class R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Sub-transfer agent fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net assets.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Compensation
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 Funds’ Board of Directors (the “Board”) has adopted a deferred compensation plan for independent directors that enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, 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 current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
NUVEEN | 49 |
Notes to Financial Statements (Unaudited) (continued)
Level 1 – | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
Level 2 – | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 – | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
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 an independent pricing service (“pricing service”) is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the 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:
Dividend Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 1,056,864,226 | $ | — | $ | — | $ | 1,056,864,226 | ||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 7,748,205 | — | — | 7,748,205 | ||||||||||||
Total | $ | 1,064,612,431 | $ | — | $ | — | $ | 1,064,612,431 | ||||||||
Mid Cap Value | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 108,220,362 | $ | — | $ | — | $ | 108,220,362 | ||||||||
Investments Purchased with Collateral from Securities Lending | 1,676,637 | — | — | 1,676,637 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 689,293 | — | — | 689,293 | ||||||||||||
Total | $ | 110,586,292 | $ | — | $ | — | $ | 110,586,292 | ||||||||
Small Cap Value | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common Stocks | $ | 1,397,115,487 | $ | — | $ | — | $ | 1,397,115,487 | ||||||||
Investments Purchased with Collateral from Securities Lending | 13,608,050 | — | — | 13,608,050 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 23,850,416 | — | — | 23,850,416 | ||||||||||||
Total | $ | 1,434,573,953 | $ | — | $ | — | $ | 1,434,573,953 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
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
50 | NUVEEN |
approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
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 its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (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 net unrealized appreciation (depreciation) of investments and foreign currency” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, each Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Each Fund also has the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the
NUVEEN | 51 |
Notes to Financial Statements (Unaudited) (continued)
collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the 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 each Fund’s securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its investment by the Fund. The Fund bears the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association, serves as their securities lending agent. Each Fund pays the custodian a fee based on its proportional share of the custodian’s expense of operating its securities lending program. Income earned from the securities lending program is paid to the Fund, net of any fees paid. Income from securities lending, net of fees paid, is recognized as “Securities lending income, net” on the Statement of Operations.
The following table presents the securities out on loan for the Funds, if any, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
Mid Cap Value | Common Stocks | $ | 1,594,392 | $ | (1,594,392 | ) | $ | — | ||||||
Small Cap Value | Common Stocks | 12,863,269 | (12,863,269 | ) | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan. |
Securities lending fees paid by each Fund during the current fiscal period were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Securities lending fees paid | $ | — | $ | — | $ | 727 |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Although the Funds are authorized to invest in derivative instruments, and may do so in the future, they did not make any such investments during the current fiscal period.
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.
52 | NUVEEN |
4. Fund Shares
The Funds have an effective registration statement on file with the Securities and Exchange Commission (“SEC”) to issue Class T Shares, which were not yet available for public offering at the time this report was issued.
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||||||||||||||
Dividend Value | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,616,571 | $ | 39,030,674 | 1,572,170 | $ | 22,788,334 | ||||||||||
Class C | 274,521 | 4,043,288 | 289,723 | 4,143,968 | ||||||||||||
Class R3 | 325,383 | 4,869,296 | 693,375 | 10,154,053 | ||||||||||||
Class R6 | 65,293 | 986,676 | 128,155 | 1,947,541 | ||||||||||||
Class I | 4,551,857 | 68,763,167 | 5,566,055 | 80,044,446 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 2,466,207 | 35,752,907 | 1,707,600 | 24,563,216 | ||||||||||||
Class C | 388,283 | 5,531,197 | 257,721 | 3,645,391 | ||||||||||||
Class R3 | 307,729 | 4,445,024 | 231,787 | 3,321,566 | ||||||||||||
Class R6 | 491,766 | 7,242,716 | 335,499 | 4,890,404 | ||||||||||||
Class I | 4,684,816 | 68,713,093 | 3,247,650 | 47,201,226 | ||||||||||||
16,172,426 | 239,378,038 | 14,029,735 | 202,700,145 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,889,405 | ) | (57,892,335 | ) | (5,734,596 | ) | (84,348,161 | ) | ||||||||
Class C | (590,865 | ) | (8,793,483 | ) | (1,085,823 | ) | (15,727,843 | ) | ||||||||
Class R3 | (363,287 | ) | (5,370,617 | ) | (1,521,725 | ) | (21,265,869 | ) | ||||||||
Class R6 | (484,031 | ) | (7,437,706 | ) | (672,355 | ) | (10,064,804 | ) | ||||||||
Class I | (7,992,161 | ) | (121,662,979 | ) | (24,271,877 | ) | (359,015,164 | ) | ||||||||
(13,319,749 | ) | (201,157,120 | ) | (33,286,376 | ) | (490,421,841 | ) | |||||||||
Net increase (decrease) | 2,852,677 | $ | 38,220,918 | (19,256,641 | ) | $ | (287,721,696 | ) | ||||||||
Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||||||||||||||
Mid Cap Value | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 101,162 | $ | 3,882,969 | 88,646 | $ | 3,059,697 | ||||||||||
Class C | 33,990 | 1,227,715 | 14,254 | 466,345 | ||||||||||||
Class R3 | 20,592 | 784,535 | 22,389 | 762,436 | ||||||||||||
Class I | 84,482 | 3,244,995 | 101,924 | 3,492,549 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 34,180 | 1,283,003 | 36,041 | 1,194,339 | ||||||||||||
Class C | 5,839 | 208,494 | 6,925 | 218,837 | ||||||||||||
Class R3 | 4,887 | 181,989 | 6,105 | 189,187 | ||||||||||||
Class I | 29,825 | 1,123,733 | 36,761 | 1,222,761 | ||||||||||||
314,957 | 11,937,433 | 313,045 | 10,606,151 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (132,085 | ) | (5,063,138 | ) | (180,926 | ) | (6,252,400 | ) | ||||||||
Class C | (18,976 | ) | (692,082 | ) | (44,182 | ) | (1,437,273 | ) | ||||||||
Class R3 | (31,131 | ) | (1,187,451 | ) | (76,866 | ) | (2,620,398 | ) | ||||||||
Class I | (156,600 | ) | (5,989,101 | ) | (531,537 | ) | (18,147,504 | ) | ||||||||
(338,792 | ) | (12,931,772 | ) | (833,511 | ) | (28,457,575 | ) | |||||||||
Net increase (decrease) | (23,835 | ) | $ | (994,339 | ) | (520,466 | ) | $ | (17,851,424 | ) |
NUVEEN | 53 |
Notes to Financial Statements (Unaudited) (continued)
Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||||||||||||||
Small Cap Value | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 7,709,079 | $ | 187,270,637 | 7,471,151 | $ | 150,782,821 | ||||||||||
Class C | 1,716,072 | 35,509,239 | 1,339,465 | 22,885,502 | ||||||||||||
Class R3 | 751,179 | 17,734,870 | 904,344 | 17,949,703 | ||||||||||||
Class R61 | 942,525 | 23,476,944 | 7,991 | 176,784 | ||||||||||||
Class R61 – exchanges | — | — | 997,294 | 21,022,961 | ||||||||||||
Class I | 27,162,977 | 681,393,526 | 16,536,967 | 345,127,769 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 208,118 | 5,080,399 | 45,734 | 876,042 | ||||||||||||
Class C | 38,954 | 807,521 | 6,655 | 109,586 | ||||||||||||
Class R3 | 28,763 | 685,693 | 11,775 | 220,805 | ||||||||||||
Class R61 | 23,271 | 588,604 | 82 | 1,795 | ||||||||||||
Class I | 427,849 | 10,814,561 | 81,896 | 1,625,949 | ||||||||||||
39,008,787 | 963,361,994 | 27,403,354 | 560,779,717 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (4,450,422 | ) | (107,007,565 | ) | (1,954,548 | ) | (38,629,027 | ) | ||||||||
Class C | (239,346 | ) | (4,919,061 | ) | (111,496 | ) | (1,869,261 | ) | ||||||||
Class R3 | (352,764 | ) | (8,300,228 | ) | (366,010 | ) | (7,024,234 | ) | ||||||||
Class R61 | (233,462 | ) | (5,761,687 | ) | (85,728 | ) | (1,905,002 | ) | ||||||||
Class I | (4,315,081 | ) | (107,775,996 | ) | (3,030,624 | ) | (61,908,420 | ) | ||||||||
Class I – exchanges | — | — | (997,294 | ) | (21,022,961 | ) | ||||||||||
(9,591,075 | ) | (233,764,537 | ) | (6,545,700 | ) | (132,358,905 | ) | |||||||||
Net increase (decrease) | 29,417,712 | $ | 729,597,457 | 20,857,654 | $ | 428,420,812 |
1 | Class R6 Shares were established on June 30, 2016. |
5. Investment Transactions
Long-term purchases and sales (excluding investments purchased with collateral from securities lending, where applicable) during the current fiscal period were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Purchases | $ | 256,496,901 | $ | 20,703,775 | $ | 873,031,408 | ||||||
Sales | 372,246,825 | 25,607,883 | 181,254,395 |
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.
54 | NUVEEN |
As of April 30, 2017, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Cost of investments | $ | 766,283,630 | $ | 93,277,876 | $ | 1,336,529,734 | ||||||
Gross unrealized: | ||||||||||||
Appreciation | $ | 306,346,886 | $ | 19,575,599 | $ | 145,799,658 | ||||||
Depreciation | (8,018,085 | ) | (2,267,183 | ) | (47,755,439 | ) | ||||||
Net unrealized appreciation (depreciation) of investments | $ | 298,328,801 | $ | 17,308,416 | $ | 98,044,219 |
Permanent differences, primarily due to the federal taxes paid, foreign currency transactions, tax equalization, investments in partnerships and distribution reallocations, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2016, the Funds’ last tax year end, as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Capital paid-in | $ | 14,280,958 | $ | 429,256 | $ | 1,217,707 | ||||||
Undistributed (Over-distribution of) net investment income | (368,613 | ) | (58 | ) | 306 | |||||||
Accumulated net realized gain (loss) | (13,912,345 | ) | (429,198 | ) | (1,218,013 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2016, the Funds’ last tax year end, were as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Undistributed net ordinary income1 | $ | 131,254 | $ | 978,378 | $ | 12,736,950 | ||||||
Undistributed net long-term capital gains | 144,248,800 | 2,858,930 | 7,196,233 |
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 October 31, 2016, was designated for purposes of the dividends paid deduction as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Distributions from net ordinary income2 | $ | 25,719,209 | $ | 440,300 | $ | 403,881 | ||||||
Distributions from net long-term capital gains | 93,703,442 | 3,539,808 | 2,901,691 |
2 | Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gain, if any. |
As of October 31, 2016, the Funds’ last tax year end, the Funds did not have any unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains.
During the Funds’ last tax year ended October 31, 2016, Dividend Value utilized $4,135,445 of its capital loss carryforwards.
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual Fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Net Assets | Dividend Value | Mid Cap Value | Small Cap Value | |||||||||
For the first $125 million | 0.5000 | % | 0.6000 | % | 0.6500 | % | ||||||
For the next $125 million | 0.4875 | 0.5875 | 0.6375 | |||||||||
For the next $250 million | 0.4750 | 0.5750 | 0.6250 | |||||||||
For the next $500 million | 0.4625 | 0.5625 | 0.6125 | |||||||||
For the next $1 billion | 0.4500 | 0.5500 | 0.6000 | |||||||||
For net assets over $2 billion | 0.4250 | 0.5250 | 0.5750 |
NUVEEN | 55 |
Notes to Financial Statements (Unaudited) (continued)
The annual complex-level fee, payable monthly, for each Fund is determined by taking the complex-level free rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets”. The complex-level fee schedule for each Fund is as follows:
Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | 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 April 30, 2017, the complex-level fee rate for each Fund was as follows: |
Fund | Complex-Level Fee | |||
Dividend Value | 0.1993 | % | ||
Mid Cap Value | 0.2000 | |||
Small Cap Value | 0.1635 |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of the following Funds so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table. However, because Class R6 shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expense for the Class R6 shares will be less than the expense limitation. The expense limitation expiring February 28, 2018 may be terminated or modified prior to that date only with the approval of the Board.
Fund | Expense Cap | Expense Cap Expiration Date | ||||
Mid Cap Value | 0.92 | % | February 28, 2018 | |||
Small Cap Value | 1.02 | * | February 28, 2018 |
* | Effective June 1, 2017 (subsequent to the close of the reporting period), the Fund’s Expense Cap is 0.99% and will expire on July 31, 2019. |
Other Transactions with Affiliates
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:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Sales charges collected | $ | 93,885 | $ | 33,767 | $ | 820,410 | ||||||
Paid to financial intermediaries | 82,843 | 29,764 | 721,668 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for pro-viding 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:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
Commission advances | $ | 11,342 | $ | 6,693 | $ | 342,891 |
56 | NUVEEN |
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
12b-1 fees retained | $ | 10,996 | $ | 3,567 | $ | 157,899 |
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:
Dividend Value | Mid Cap Value | Small Cap Value | ||||||||||
CDSC retained | $ | 2,756 | $ | 1,307 | $ | 7,831 |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds 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 Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have 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 any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including all of the Funds covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 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.
9. New Accounting Pronouncements
Amendments to Regulation S-X
In October 2016, the SEC adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date of the amendments to Regulation S-X is August 1, 2017. Management is still evaluating the impact of the final rules, if any.
10. Subsequent Events
Management Fees
Effective June 1, 2017, the Adviser has agreed to waive fees and/or reimburse expenses of Small Cap Value through July 31, 2019 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 0.99% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitation may be terminated or modified prior to July 31, 2019 only with the approval of the Board.
During May 2017, the Board approved a change to each Fund’s annual Fund-level management fee schedule, which will become effective on August 1, 2017.
NUVEEN | 57 |
Notes to Financial Statements (Unaudited) (continued)
Effective August 1, 2017 the annual Fund-level fee, payable monthly, for each Fund will be calculated according to the following schedules:
Average Daily Net Assets | Dividend Value | Mid Cap Value | Small Cap Value | |||||||||
For the first $125 million | 0.5000 | % | 0.6000 | % | 0.6500 | % | ||||||
For the next $125 million | 0.4875 | 0.5875 | 0.6375 | |||||||||
For the next $250 million | 0.4750 | 0.5750 | 0.6250 | |||||||||
For the next $500 million | 0.4625 | 0.5625 | 0.6125 | |||||||||
For the next $1 billion | 0.4500 | 0.5500 | 0.6000 | |||||||||
For the next $3 billion | 0.4250 | 0.5250 | 0.5750 | |||||||||
For the next $2.5 billion | 0.4000 | 0.5000 | 0.5500 | |||||||||
For the next $2.5 billion | 0.3875 | 0.4875 | 0.5375 | |||||||||
For net assets of $10 billion and greater | 0.3750 | 0.4750 | 0.5250 |
58 | NUVEEN |
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
Custodian 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 Nuveen Investor Services P.O. Box 8530 Boston, MA 02266-8530 (800) 257-8787 |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation. | ||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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 toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. | ||||||||||||||
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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
NUVEEN | 59 |
Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Lipper Equity Income Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Equity Income Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Lipper Mid-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Value Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Lipper Small-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Market Capitalization: The market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 1000® Value Index: An index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell 2000® Value Index: An index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell Midcap® Value Index: An index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. 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.
60 | NUVEEN |
Notes
NUVEEN | 61 |
Notes
62 | NUVEEN |
Notes
NUVEEN | 63 |
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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 solutions designed to be integral components of a well-diversified core portfolio. | ||||||||||||||
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Focused on meeting investor needs.
Nuveen is the investment management arm of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future. | ||||||||||||||
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Find out how we can help you. To learn more about how the products and services of Nuveen
Learn more about Nuveen Funds at: www.nuveen.com/mf | ||||||||||||||
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Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MSA-FSTK-0417P 184327-INV-B-06/18
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Share Class / Ticker Symbol | ||||||||
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||
Nuveen Large Cap Growth Opportunities Fund | FRGWX | FAWCX | FLCYX | FLCFX | FIGWX | |||
Nuveen Mid Cap Growth Opportunities Fund | FRSLX | FMECX | FMEYX | FMEFX | FISGX | |||
Nuveen Small Cap Growth Opportunities Fund | FRMPX | FMPCX | FMPYX | FMPFX | FIMPX |
NO BANK GUARANTEE
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to Shareholders
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Comments
Considerations
and Expense Ratios
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 15.53% | 18.20% | 11.14% | 8.23% | |
Class A Shares at maximum Offering Price | 8.89% | 11.40% | 9.84% | 7.59% | |
Russell 1000® Growth Index | 15.23% | 19.50% | 13.87% | 8.88% | |
Lipper Large-Cap Growth Funds Classification Average | 13.50% | 18.14% | 12.34% | 7.85% | |
Class C Shares | 15.06% | 17.29% | 10.32% | 7.42% | |
Class R3 Shares | 15.39% | 17.92% | 10.87% | 7.96% | |
Class I Shares | 15.63% | 18.49% | 11.42% | 8.50% |
Cumulative | Average Annual | |||
6-Month | 1-Year | Since Inception | ||
Class R6 Shares | 15.72% | 18.65% | 13.60% |
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 9.03% | 14.03% | 10.47% | 8.36% | |
Class A Shares at maximum Offering Price | 2.75% | 7.49% | 9.16% | 7.72% | |
Class C Shares | 8.65% | 13.20% | 9.65% | 7.56% | |
Class R3 Shares | 8.93% | 13.75% | 10.19% | 8.09% | |
Class I Shares | 9.20% | 14.32% | 10.74% | 8.64% |
Cumulative | Average Annual | |||
6-Month | 1-Year | Since Inception | ||
Class R6 Shares | 9.28% | 14.46% | 13.12% |
Share Class | |||||
Class A | Class C | Class R3 | Class R6 | Class I | |
Expense Ratios | 1.12% | 1.87% | 1.37% | 0.77% | 0.87% |
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 13.20% | 16.66% | 9.55% | 6.86% | |
Class A Shares at maximum Offering Price | 6.70% | 9.94% | 8.26% | 6.23% | |
Russell Midcap® Growth Index | 13.59% | 15.83% | 12.28% | 7.83% | |
Lipper Multi-Cap Growth Funds Classification Average | 14.07% | 17.83% | 11.76% | 7.36% | |
Class C Shares | 12.80% | 15.78% | 8.74% | 6.07% | |
Class R3 Shares | 13.07% | 16.34% | 9.28% | 6.60% | |
Class I Shares | 13.34% | 16.94% | 9.83% | 7.13% |
Cumulative | Average Annual | |||
6-Month | 1-Year | Since Inception | ||
Class R6 Shares | 13.46% | 17.13% | 11.13% |
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 5.34% | 14.22% | 9.27% | 7.09% | |
Class A Shares at maximum Offering Price | (0.72)% | 7.65% | 7.98% | 6.46% | |
Class C Shares | 4.97% | 13.38% | 8.46% | 6.29% | |
Class R3 Shares | 5.22% | 13.95% | 9.00% | 6.82% | |
Class I Shares | 5.46% | 14.52% | 9.54% | 7.36% |
Cumulative | Average Annual | |||
6-Month | 1-Year | Since Inception | ||
Class R6 Shares | 5.57% | 14.69% | 10.85% |
Share Class | |||||
Class A | Class C | Class R3 | Class R6 | Class I | |
Gross Expense Ratios | 1.22% | 1.97% | 1.47% | 0.83% | 0.97% |
Net Expense Ratios | 1.17% | 1.92% | 1.42% | 0.78% | 0.92% |
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 16.44% | 25.45% | 11.09% | 7.48% | |
Class A Shares at maximum Offering Price | 9.76% | 18.22% | 9.78% | 6.85% | |
Russell 2000® Growth Index | 18.48% | 24.06% | 12.89% | 7.97% | |
Lipper Small-Cap Growth Funds Classification Average | 16.82% | 22.59% | 11.07% | 7.16% | |
Class C Shares | 16.05% | 24.52% | 10.27% | 6.69% | |
Class R3 Shares | 16.29% | 25.20% | 10.82% | 7.22% | |
Class I Shares | 16.61% | 25.77% | 11.37% | 7.75% |
Cumulative | ||
6-Month | Since Inception | |
Class R6 Shares | 16.64% | 23.81% |
Cumulative | Average Annual | ||||
6-Month | 1-Year | 5-Year | 10-Year | ||
Class A Shares at NAV | 8.16% | 24.45% | 10.29% | 7.52% | |
Class A Shares at maximum Offering Price | 1.92% | 17.28% | 8.99% | 6.89% | |
Class C Shares | 7.83% | 23.63% | 9.47% | 6.72% | |
Class R3 Shares | 8.01% | 24.19% | 10.01% | 7.25% | |
Class I Shares | 8.31% | 24.80% | 10.57% | 7.79% |
Cumulative | ||
6-Month | Since Inception | |
Class R6 Shares | 8.39% | 21.82% |
Share Class | |||||
Class A | Class C | Class R3 | Class R6 | Class I | |
Gross Expense Ratios | 1.39% | 2.14% | 1.64% | 1.00% | 1.13% |
Net Expense Ratios | 1.24% | 1.99% | 1.49% | 0.86% | 0.99% |
Fund Allocation (% of net assets) | |
Common Stocks | 100.1% |
Investments Purchased with Collateral from Securities Lending | 2.7% |
Money Market Funds | 0.3% |
Other Assets Less Liabilities | (3.1)% |
Net Assets | 100% |
Portfolio Composition (% of net assets) | |
Software | 13.8% |
Internet Software & Services | 11.0% |
Biotechnology | 8.9% |
IT Services | 8.3% |
Internet & Direct Marketing Retail | 7.7% |
Technology Hardware, Storage & Peripherals | 5.1% |
Capital Markets | 4.7% |
Media | 4.5% |
Health Care Providers & Services | 4.0% |
Hotels, Restaurants & Leisure | 3.6% |
Oil, Gas & Consumable Fuels | 3.2% |
Semiconductors & Semiconductor Equipment | 3.1% |
Machinery | 2.8% |
Other | 19.4% |
Investments Purchased with Collateral from Securities Lending | 2.7% |
Money Market Funds | 0.3% |
Other Assets Less Liabilities | (3.1)% |
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets) | |
Alphabet Inc., Class A | 5.5% |
Microsoft Corporation | 5.2% |
Apple, Inc. | 5.1% |
Amazon.com, Inc. | 5.0% |
Visa Inc. | 4.5% |
Fund Allocation (% of net assets) | |
Common Stocks | 98.4% |
Exchange-Traded Funds | 0.8% |
Investments Purchased with Collateral from Securities Lending | 3.7% |
Money Market Funds | 0.5% |
Other Assets Less Liabilities | (3.4)% |
Net Assets | 100% |
Portfolio Composition (% of net assets) | |
Software | 10.5% |
IT Services | 8.2% |
Capital Markets | 7.5% |
Hotels, Restaurants & Leisure | 6.8% |
Machinery | 6.1% |
Health Care Equipment & Supplies | 5.2% |
Life Sciences Tools & Services | 4.6% |
Semiconductors & Semiconductor Equipment | 3.9% |
Media | 3.9% |
Household Durables | 3.7% |
Aerospace & Defense | 2.9% |
Building Products | 2.9% |
Health Care Providers & Services | 2.4% |
Specialty Retail | 2.4% |
Internet & Direct Marketing Retail | 2.2% |
Internet Software & Services | 2.1% |
Trading Companies & Distributors | 2.1% |
Biotechnology | 2.1% |
Other | 19.7% |
Investments Purchased with Collateral from Securities Lending | 3.7% |
Money Market Funds | 0.5% |
Other Assets Less Liabilities | (3.4)% |
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets) | |
Wynn Resorts Limited | 2.5% |
Expedia, Inc. | 2.1% |
MGM Resorts International Inc. | 2.1% |
Alliance Data Systems Corporation | 2.1% |
Electronic Arts Inc. | 2.0% |
Fund Allocation (% of net assets) | |
Common Stocks | 96.1% |
Investments Purchased with Collateral from Securities Lending | 13.4% |
Money Market Funds | 2.9% |
Other Assets Less Liabilities | (12.4)% |
Net Assets | 100% |
Portfolio Composition (% of net assets) | |
Health Care Equipment & Supplies | 10.0% |
Software | 7.4% |
Internet Software & Services | 6.6% |
Semiconductors & Semiconductor Equipment | 6.5% |
Banks | 6.1% |
Biotechnology | 5.8% |
Hotels, Restaurants & Leisure | 5.6% |
Health Care Providers & Services | 4.7% |
Equity Real Estate Investment Trust | 3.5% |
Chemicals | 3.0% |
Communications Equipment | 2.9% |
Commercial Services & Supplies | 2.9% |
Building Products | 2.7% |
Food Products | 2.1% |
Oil, Gas & Consumable Fuels | 2.1% |
Pharmaceuticals | 2.0% |
Capital Markets | 1.9% |
Diversified Telecommunication Services | 1.6% |
Other | 18.7% |
Investments Purchased with Collateral from Securities Lending | 13.4% |
Money Market Funds | 2.9% |
Other Assets Less Liabilities | (12.4)% |
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets) | |
Evercore Partners Inc. | 1.9% |
Nxstage Medical, Inc. | 1.9% |
Plantronics Inc. | 1.7% |
Wingstop Inc. | 1.6% |
K2M Group Holdings Inc. | 1.6% |
Examples
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 | $1,155.30 | $1,150.60 | $1,153.90 | $1,157.20 | $1,156.30 |
Expenses Incurred During the Period | $ 6.09 | $ 10.08 | $ 7.42 | $ 4.12 | $ 4.76 |
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 | $1,019.14 | $1,015.42 | $1,017.90 | $1,020.98 | $1,020.38 |
Expenses Incurred During the Period | $ 5.71 | $ 9.44 | $ 6.95 | $ 3.86 | $ 4.46 |
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 | $1,132.00 | $1,128.00 | $1,130.70 | $1,134.60 | $1,133.40 |
Expenses Incurred During the Period | $ 6.18 | $ 10.13 | $ 7.50 | $ 4.02 | $ 4.87 |
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 | $1,018.99 | $1,015.27 | $1,017.75 | $1,021.03 | $1,020.23 |
Expenses Incurred During the Period | $ 5.86 | $ 9.59 | $ 7.10 | $ 3.81 | $ 4.61 |
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 | $1,164.40 | $1,160.50 | $1,162.90 | $1,166.40 | $1,166.10 |
Expenses Incurred During the Period | $ 7.19 | $ 11.20 | $ 8.53 | $ 5.21 | $ 5.85 |
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 | $1,018.15 | $1,014.43 | $1,016.91 | $1,019.98 | $1,019.39 |
Expenses Incurred During the Period | $ 6.71 | $ 10.44 | $ 7.95 | $ 4.86 | $ 5.46 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
LONG-TERM INVESTMENTS – 100.1% | ||||||
COMMON STOCKS – 100.1% | ||||||
Aerospace & Defense – 2.2% | ||||||
24,397 | Lockheed Martin Corporation | $ 6,573,772 | ||||
Airlines – 1.4% | ||||||
49,710 | Alaska Air Group, Inc. | 4,229,824 | ||||
Banks – 1.5% | ||||||
33,188 | Signature Bank, (2) | 4,594,879 | ||||
Biotechnology – 8.9% | ||||||
86,293 | AbbVie Inc. | 5,690,161 | ||||
29,761 | Alexion Pharmaceuticals Inc., (2) | 3,802,861 | ||||
15,092 | Biogen Inc., (2) | 4,093,101 | ||||
47,803 | Celgene Corporation, (2) | 5,929,962 | ||||
25,662 | Incyte Pharmaceuticals Inc., (2) | 3,189,273 | ||||
34,748 | Vertex Pharmaceuticals Inc., (2) | 4,110,688 | ||||
Total Biotechnology | 26,816,046 | |||||
Capital Markets – 4.7% | ||||||
127,315 | Charles Schwab Corporation | 4,946,188 | ||||
83,050 | Raymond James Financial Inc. | 6,188,886 | ||||
35,908 | State Street Corporation | 3,012,681 | ||||
Total Capital Markets | 14,147,755 | |||||
Chemicals – 2.0% | ||||||
17,866 | Sherwin-Williams Company | 5,979,393 | ||||
Equity Real Estate Investment Trust – 1.4% | ||||||
33,154 | SBA Communications Corporation, (2) | 4,193,649 | ||||
Food Products – 2.4% | ||||||
40,017 | Kraft Heinz Company | 3,617,137 | ||||
60,323 | Pinnacle Foods Inc. | 3,507,782 | ||||
Total Food Products | 7,124,919 | |||||
Health Care Equipment & Supplies – 1.5% | ||||||
169,203 | Boston Scientific Corporation, (2) | 4,463,575 | ||||
Health Care Providers & Services – 4.0% | ||||||
31,579 | Aetna Inc. | 4,265,376 | ||||
26,236 | CIGNA Corporation | 4,102,523 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
Health Care Providers & Services (continued) | ||||||
16,943 | Humana Inc. | $ 3,761,007 | ||||
Total Health Care Providers & Services | 12,128,906 | |||||
Hotels, Restaurants & Leisure – 3.6% | ||||||
169,803 | MGM Resorts International Inc. | 5,214,650 | ||||
45,336 | Wynn Resorts Limited | 5,576,781 | ||||
Total Hotels, Restaurants & Leisure | 10,791,431 | |||||
Household Durables – 1.6% | ||||||
20,905 | Mohawk Industries Inc., (2) | 4,908,285 | ||||
Internet & Direct Marketing Retail – 7.7% | ||||||
16,265 | Amazon.com, Inc., (2) | 15,044,962 | ||||
4,359 | Priceline Group Inc., (2), (3) | 8,050,289 | ||||
Total Internet & Direct Marketing Retail | 23,095,251 | |||||
Internet Software & Services – 11.0% | ||||||
17,810 | Alphabet Inc., Class A, (2) | 16,465,701 | ||||
87,646 | Facebook Inc., Class A Shares, (2) | 13,168,812 | ||||
28,591 | LogMeIn Inc. | 3,230,783 | ||||
Total Internet Software & Services | 32,865,296 | |||||
IT Services – 8.3% | ||||||
52,540 | Cognizant Technology Solutions Corporation, Class A | 3,164,484 | ||||
210,877 | First Data Corporation, Class A Shares, (2) | 3,293,899 | ||||
98,362 | PayPal Holdings, Inc., (2) | 4,693,834 | ||||
149,585 | Visa Inc. | 13,645,144 | ||||
Total IT Services | 24,797,361 | |||||
Machinery – 2.8% | ||||||
26,680 | Cummins Inc. | 4,027,079 | ||||
50,742 | Ingersoll Rand Company Limited, Class A | 4,503,353 | ||||
Total Machinery | 8,530,432 | |||||
Media – 4.5% | ||||||
78,105 | CBS Corporation, Class B | 5,198,669 | ||||
23,596 | Charter Communications, Inc., Class A, (2) | 8,144,395 | ||||
Total Media | 13,343,064 | |||||
Oil, Gas & Consumable Fuels – 3.2% | ||||||
26,062 | Concho Resources Inc., (2) | 3,301,013 | ||||
116,056 | Parsley Energy Inc. Class A Shares, (2) | 3,457,308 | ||||
16,922 | Pioneer Natural Resources Company | 2,927,337 | ||||
Total Oil, Gas & Consumable Fuels | 9,685,658 | |||||
Road & Rail – 2.6% | ||||||
25,958 | Norfolk Southern Corporation | 3,049,805 | ||||
42,103 | Union Pacific Corporation | 4,713,852 | ||||
Total Road & Rail | 7,763,657 |
Shares | Description (1) | Value | ||||
Semiconductors & Semiconductor Equipment – 3.1% | ||||||
25,984 | Broadcom Limited | $5,737,527 | ||||
24,155 | Lam Research Corporation | 3,498,852 | ||||
Total Semiconductors & Semiconductor Equipment | 9,236,379 | |||||
Software – 13.8% | ||||||
95,540 | Activision Blizzard Inc. | 4,991,965 | ||||
48,213 | Adobe Systems Incorporated, (2) | 6,448,007 | ||||
39,920 | Citrix Systems, (2) | 3,231,125 | ||||
46,365 | Electronic Arts Inc., (2) | 4,396,329 | ||||
229,270 | Microsoft Corporation | 15,695,824 | ||||
42,827 | Salesforce.com, Inc., (2) | 3,688,261 | ||||
30,774 | ServiceNow Inc., (2) | 2,907,528 | ||||
Total Software | 41,359,039 | |||||
Technology Hardware, Storage & Peripherals – 5.1% | ||||||
105,526 | Apple, Inc. | 15,158,810 | ||||
Trading Companies & Distributors – 1.0% | ||||||
76,845 | HD Supply Holdings Inc., (2) | 3,096,853 | ||||
Wireless Telecommunication Services – 1.8% | ||||||
80,465 | T-Mobile US Inc., (2) | 5,412,881 | ||||
Total Long-Term Investments (cost $200,944,506) | 300,297,115 |
Shares | Description (1) | Value | ||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 2.7% | ||||||
MONEY MARKET FUNDS – 2.7% | ||||||
8,080,916 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ 8,080,916 | ||||
Total Investments Purchased with Collateral from Securities Lending (cost $8,080,916) | 8,080,916 |
Shares | Description (1) | Value | ||||
SHORT-TERM INVESTMENTS – 0.3% | ||||||
MONEY MARKET FUNDS – 0.3% | ||||||
725,878 | First American Treasury Obligations Fund, Class Z, 0.626%, (4) | $ 725,878 | ||||
Total Short-Term Investments (cost $725,878) | 725,878 | |||||
Total Investments (cost $209,751,300) – 103.1% | 309,103,909 | |||||
Other Assets Less Liabilities – (3.1)% | (9,209,533) | |||||
Net Assets – 100% | $ 299,894,376 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. | |
(3) | Investment, 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 $7,969,028. | |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. | |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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. |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
LONG-TERM INVESTMENTS – 99.2% | ||||||
COMMON STOCKS – 98.4% | ||||||
Aerospace & Defense – 2.9% | ||||||
112,565 | Rockwell Collins, Inc. | $11,716,891 | ||||
46,500 | TransDigm Group Inc., (2) | 11,472,945 | ||||
Total Aerospace & Defense | 23,189,836 | |||||
Airlines – 1.6% | ||||||
148,928 | Alaska Air Group, Inc. | 12,672,284 | ||||
Banks – 1.1% | ||||||
66,501 | Signature Bank, (2) | 9,207,063 | ||||
Biotechnology – 2.1% | ||||||
32,284 | Alexion Pharmaceuticals Inc., (2) | 4,125,250 | ||||
100,018 | Incyte Pharmaceuticals Inc., (2) | 12,430,237 | ||||
Total Biotechnology | 16,555,487 | |||||
Building Products – 2.9% | ||||||
338,666 | Masco Corporation | 12,537,415 | ||||
195,503 | Smith AO Corporation | 10,533,702 | ||||
Total Building Products | 23,071,117 | |||||
Capital Markets – 7.5% | ||||||
98,328 | CBOE Holdings Inc. | 8,103,211 | ||||
293,433 | E*Trade Group Inc., (2) | 10,138,110 | ||||
127,722 | Moody's Corporation | 15,112,067 | ||||
102,314 | MSCI Inc., Class A Shares | 10,264,140 | ||||
73,266 | S&P Global, Inc. | 9,831,565 | ||||
185,104 | TD Ameritrade Holding Corporation | 7,083,930 | ||||
Total Capital Markets | 60,533,023 | |||||
Chemicals – 1.6% | ||||||
38,622 | Sherwin-Williams Company | 12,926,011 | ||||
Communications Equipment – 0.9% | ||||||
59,078 | F5 Networks, Inc., (2) | 7,628,742 | ||||
Construction Materials – 1.1% | ||||||
93,533 | Eagle Materials Inc. | 8,976,362 | ||||
Containers & Packaging – 1.2% | ||||||
192,594 | Berry Plastics Corporation, (2) | 9,629,700 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
Electrical Equipment – 1.8% | ||||||
246,938 | Ametek Inc. | $ 14,124,854 | ||||
Electronic Equipment, Instruments & Components – 1.5% | ||||||
166,958 | Amphenol Corporation, Class A | 12,072,733 | ||||
Food Products – 1.5% | ||||||
284,941 | Lamb Weston Holding, Inc. | 11,896,287 | ||||
Health Care Equipment & Supplies – 5.2% | ||||||
57,053 | Abiomed, Inc., (2) | 7,435,147 | ||||
117,851 | DexCom, Inc., (2) | 9,187,664 | ||||
308,727 | Hologic Inc., (2), (3) | 13,939,024 | ||||
117,689 | Insulet Corporation, (2) | 5,108,879 | ||||
213,710 | Spectranetics Corporation, (2) | 6,112,106 | ||||
Total Health Care Equipment & Supplies | 41,782,820 | |||||
Health Care Providers & Services – 2.4% | ||||||
169,223 | Centene Corporation, (2) | 12,590,191 | ||||
146,479 | HealthEquity, Inc., (2) | 6,667,724 | ||||
Total Health Care Providers & Services | 19,257,915 | |||||
Hotels, Restaurants & Leisure – 6.8% | ||||||
143,628 | Marriott International, Inc., Class A | 13,561,356 | ||||
550,163 | MGM Resorts International Inc. | 16,895,506 | ||||
40,757 | Royal Caribbean Cruises Limited | 4,344,696 | ||||
161,654 | Wynn Resorts Limited | 19,885,058 | ||||
Total Hotels, Restaurants & Leisure | 54,686,616 | |||||
Household Durables – 3.7% | ||||||
372,706 | D.R. Horton, Inc. | 12,258,300 | ||||
50,538 | Mohawk Industries Inc., (2), (3) | 11,865,817 | ||||
117,120 | Newell Brands Inc. | 5,591,309 | ||||
Total Household Durables | 29,715,426 | |||||
Internet & Direct Marketing Retail – 2.2% | ||||||
129,229 | Expedia, Inc. | 17,280,502 | ||||
Internet Software & Services – 2.1% | ||||||
199,695 | GoDaddy, Inc., Class A Shares, (2) | 7,772,129 | ||||
78,966 | LogMeIn Inc. | 8,923,158 | ||||
Total Internet Software & Services | 16,695,287 | |||||
IT Services – 8.2% | ||||||
66,025 | Alliance Data Systems Corporation, (3) | 16,481,821 | ||||
152,105 | Fidelity National Information Services | 12,805,720 | ||||
594,589 | First Data Corporation, Class A Shares, (2) | 9,287,480 | ||||
104,941 | FleetCor Technologies Inc., (2) | 14,811,373 |
Shares | Description (1) | Value | ||||
IT Services (continued) | ||||||
222,200 | Total System Services Inc. | $ 12,734,282 | ||||
Total IT Services | 66,120,676 | |||||
Life Sciences Tools & Services – 4.6% | ||||||
591,204 | Accelerate Diagnostics Inc., (2) | 16,139,869 | ||||
121,259 | Quintiles Transnational Corporation, (2) | 10,219,709 | ||||
63,623 | Waters Corporation, (2) | 10,808,911 | ||||
Total Life Sciences Tools & Services | 37,168,489 | |||||
Machinery – 6.1% | ||||||
67,713 | Cummins Inc., (3) | 10,220,600 | ||||
135,996 | Dover Corporation | 10,727,364 | ||||
84,202 | IDEX Corporation | 8,821,002 | ||||
72,693 | Nordson Corporation | 9,101,164 | ||||
75,753 | Stanley Black & Decker Inc. | 10,313,771 | ||||
Total Machinery | 49,183,901 | |||||
Media – 3.9% | ||||||
246,898 | Discovery Communications inc., Class A Shares, (2) | 7,105,724 | ||||
489,640 | Interpublic Group of Companies, Inc. | 11,540,815 | ||||
334,918 | Liberty Sirius Group, Class-A Shares, (2) | 12,760,376 | ||||
Total Media | 31,406,915 | |||||
Multiline Retail – 1.5% | ||||||
149,521 | Dollar Tree Stores Inc., (2) | 12,375,853 | ||||
Oil, Gas & Consumable Fuels – 2.0% | ||||||
60,870 | Diamondback Energy | 6,077,261 | ||||
344,329 | Parsley Energy Inc. Class A Shares, (2) | 10,257,561 | ||||
Total Oil, Gas & Consumable Fuels | 16,334,822 | |||||
Pharmaceuticals – 0.5% | ||||||
208,939 | Nektar Therapeutics, (2) | 3,963,573 | ||||
Road & Rail – 1.1% | ||||||
367,306 | Swift Transportation Company, (2), (3) | 9,028,381 | ||||
Semiconductors & Semiconductor Equipment – 3.9% | ||||||
93,952 | Lam Research Corporation | 13,608,947 | ||||
190,106 | MA-COM Technology Solutions Holdings Incorporated, (2) | 9,292,381 | ||||
187,786 | Microsemi Corporation, (2) | 8,814,675 | ||||
Total Semiconductors & Semiconductor Equipment | 31,716,003 | |||||
Software – 10.5% | ||||||
141,573 | Activision Blizzard Inc. | 7,397,189 | ||||
117,213 | Autodesk, Inc., (2), (3) | 10,557,375 | ||||
137,464 | Citrix Systems, (2) | 11,126,336 | ||||
173,359 | Electronic Arts Inc., (2), (3) | 16,437,900 | ||||
91,493 | HubSpot, Inc., (2), (3) | 6,134,606 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
Software (continued) | ||||||
72,328 | Intuit, Inc. | $9,056,189 | ||||
169,191 | Parametric Technology Corporation, (2), (3) | 9,144,774 | ||||
67,817 | Proofpoint, Incorporated, (2) | 5,111,367 | ||||
98,237 | ServiceNow Inc., (2) | 9,281,432 | ||||
Total Software | 84,247,168 | |||||
Specialty Retail – 2.4% | ||||||
156,713 | Ross Stores, Inc. | 10,186,345 | ||||
31,986 | Ulta Beauty, Inc., (2) | 9,002,140 | ||||
Total Specialty Retail | 19,188,485 | |||||
Thrifts & Mortgage Finance – 1.5% | ||||||
515,000 | BofI Holdings, Inc., (2), (3) | 12,303,350 | ||||
Trading Companies & Distributors – 2.1% | ||||||
125,723 | AerCap Holdings N.V, (2) | 5,784,515 | ||||
267,786 | HD Supply Holdings Inc., (2) | 10,791,776 | ||||
Total Trading Companies & Distributors | 16,576,291 | |||||
Total Common Stocks (cost $650,257,738) | 791,515,972 |
Shares | Description (1) | Value | ||||
EXCHANGE-TRADED FUNDS – 0.8% | ||||||
88,136 | SPDR S&P Biotech Exchange Traded Fund, (3) | $ 6,296,436 | ||||
Total Exchange-Traded Funds (cost $6,055,853) | 6,296,436 | |||||
Total Long-Term Investments (cost $656,313,591) | 797,812,408 |
Shares | Description (1) | Value | ||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 3.7% | ||||||
MONEY MARKET FUNDS – 3.7% | ||||||
29,470,847 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ 29,470,847 | ||||
Total Investments Purchased with Collateral from Securities Lending (cost $29,470,847) | 29,470,847 |
Shares | Description (1) | Value | ||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||
MONEY MARKET FUNDS – 0.5% | ||||||
3,862,112 | First American Treasury Obligations Fund, Class Z, 0.626%, (4) | $ 3,862,112 | ||||
Total Short-Term Investments (cost $3,862,112) | 3,862,112 | |||||
Total Investments (cost $689,646,550) – 103.4% | 831,145,367 | |||||
Other Assets Less Liabilities – (3.4)% | (27,258,626) | |||||
Net Assets – 100% | $ 803,886,741 |
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 $28,195,724. | |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. | |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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. | |
SPDR | Standard & Poor's Depositary Receipt |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
LONG-TERM INVESTMENTS – 96.1% | ||||||
COMMON STOCKS – 96.1% | ||||||
Banks – 6.1% | ||||||
28,673 | Bank of the Ozarks, Inc. | $1,361,107 | ||||
41,378 | Cathay General Bancorp | 1,574,433 | ||||
28,650 | Customers Bancorp Inc., (2) | 886,145 | ||||
15,859 | Eagle Bancorp, Inc., (2) | 949,954 | ||||
27,765 | Western Alliance Bancorporation, (2) | 1,329,943 | ||||
Total Banks | 6,101,582 | |||||
Biotechnology – 5.8% | ||||||
32,051 | Alder Biopharmaceuticals Inc., (2), (3) | 642,623 | ||||
14,380 | Blueprint Medicines Corporation, (2) | 669,820 | ||||
19,884 | Juno Therapeutic Inc., (2), (3) | 495,907 | ||||
6,247 | Ligand Pharmaceuticals, Inc., (2), (3) | 694,479 | ||||
11,931 | Prothena Corporation PLC, (2), (3) | 645,825 | ||||
13,033 | Radius Health Inc., (2), (3) | 509,199 | ||||
3,437 | Sage Therapeutics, Inc., (2) | 244,027 | ||||
19,152 | Sarepta Therapeutics Inc., (2), (3) | 694,451 | ||||
4,474 | Tesaro Inc., (2) | 660,318 | ||||
8,927 | Ultragenyx Pharmaceutical Inc., (2), (3) | 574,810 | ||||
Total Biotechnology | 5,831,459 | |||||
Building Products – 2.7% | ||||||
62,701 | Continental Building Products Inc., (2) | 1,526,769 | ||||
34,385 | Jeld-Wen Holding, Inc., (2) | 1,135,737 | ||||
Total Building Products | 2,662,506 | |||||
Capital Markets – 1.9% | ||||||
25,177 | Evercore Partners Inc. | 1,856,804 | ||||
Chemicals – 3.0% | ||||||
78,905 | Ferro Corporation | 1,413,977 | ||||
39,961 | PolyOne Corporation | 1,566,871 | ||||
Total Chemicals | 2,980,848 | |||||
Commercial Services & Supplies – 2.9% | ||||||
28,201 | HNI Corporation | 1,318,679 | ||||
80,872 | Interface, Inc. | 1,609,353 | ||||
Total Commercial Services & Supplies | 2,928,032 | |||||
Communications Equipment – 2.9% | ||||||
27,570 | Lumentum Holdings Inc., (2) | 1,178,617 |
Shares | Description (1) | Value | ||||
Communications Equipment (continued) | ||||||
32,105 | Plantronics Inc. | $ 1,752,933 | ||||
Total Communications Equipment | 2,931,550 | |||||
Construction & Engineering – 1.3% | ||||||
29,003 | MasTec Inc., (2) | 1,280,482 | ||||
Containers & Packaging – 0.7% | ||||||
14,223 | Berry Plastics Corporation, (2) | 711,150 | ||||
Diversified Consumer Services – 1.3% | ||||||
17,206 | Grand Canyon Education Inc., (2) | 1,293,203 | ||||
Diversified Telecommunication Services – 1.6% | ||||||
35,532 | Cogent Communications Group, Inc. | 1,598,940 | ||||
Electrical Equipment – 1.4% | ||||||
39,933 | Generac Holdings Inc., (2) | 1,404,444 | ||||
Electronic Equipment, Instruments & Components – 1.4% | ||||||
6,491 | Coherent Inc., (2), (3) | 1,399,460 | ||||
Equity Real Estate Investment Trust – 3.5% | ||||||
23,131 | Dupont Fabros Technology Inc. | 1,192,403 | ||||
11,026 | PS Business Parks Inc., (3) | 1,340,100 | ||||
61,206 | Summit Hotel Properties Inc. | 1,011,735 | ||||
Total Equity Real Estate Investment Trust | 3,544,238 | |||||
Food Products – 2.1% | ||||||
33,301 | Snyders Lance Inc. | 1,174,193 | ||||
11,154 | TreeHouse Foods, Inc., (2) | 977,091 | ||||
Total Food Products | 2,151,284 | |||||
Health Care Equipment & Supplies – 10.0% | ||||||
48,141 | Cardiovascular Systems, Inc., (2) | 1,437,972 | ||||
27,529 | Glaukos Corporation, (2) | 1,308,453 | ||||
29,597 | Insulet Corporation, (2) | 1,284,806 | ||||
72,772 | K2M Group Holdings Inc., (2) | 1,611,900 | ||||
32,040 | Merit Medical Systems, Inc., (2) | 1,079,748 | ||||
15,656 | Nevro Corporation, (2) | 1,475,108 | ||||
62,078 | Nxstage Medical, Inc., (2) | 1,855,511 | ||||
Total Health Care Equipment & Supplies | 10,053,498 | |||||
Health Care Providers & Services – 4.7% | ||||||
23,550 | Amedisys, Inc., (2), (3) | 1,276,410 | ||||
30,842 | AMN Healthcare Services Inc., (2) | 1,259,896 | ||||
30,184 | HealthEquity, Inc., (2) | 1,373,976 | ||||
29,919 | Teladoc, Inc., (2), (3) | 741,991 | ||||
Total Health Care Providers & Services | 4,652,273 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||
Hotels, Restaurants & Leisure – 5.6% | ||||||
16,576 | Papa John's International, Inc. | $1,310,499 | ||||
62,767 | Planet Fitness Inc., (2), (3) | 1,305,554 | ||||
29,438 | Texas Roadhouse, Inc. | 1,380,053 | ||||
55,884 | Wingstop Inc., (2), (3) | 1,644,666 | ||||
Total Hotels, Restaurants & Leisure | 5,640,772 | |||||
Household Durables – 1.1% | ||||||
20,719 | Installed Building Products Inc., (2) | 1,105,359 | ||||
Internet Software & Services – 6.6% | ||||||
26,720 | Cornerstone OnDemand Inc., (2) | 1,049,562 | ||||
31,910 | Envestnet Inc., (2), (3) | 1,110,468 | ||||
13,246 | LogMeIn Inc. | 1,496,798 | ||||
42,672 | Mimecast Limited, (2) | 1,031,382 | ||||
28,249 | MINDBODY, Inc., Class A Shares, (2), (3) | 800,859 | ||||
32,507 | Twilio, Inc., (2), (3) | 1,074,356 | ||||
Total Internet Software & Services | 6,563,425 | |||||
IT Services – 1.6% | ||||||
20,915 | EPAM Systems Inc., (2) | 1,610,455 | ||||
Leisure Products – 1.0% | ||||||
17,358 | Brunswick Corporation | 985,067 | ||||
Life Sciences Tools & Services – 1.3% | ||||||
47,483 | Accelerate Diagnostics Inc., (2), (3) | 1,296,286 | ||||
Machinery – 1.4% | ||||||
52,404 | NN, Inc. | 1,446,350 | ||||
Oil, Gas & Consumable Fuels – 2.1% | ||||||
69,341 | Oasis Petroleum Inc., (2) | 827,931 | ||||
32,497 | RSP Permian Inc., (2) | 1,236,511 | ||||
Total Oil, Gas & Consumable Fuels | 2,064,442 | |||||
Pharmaceuticals – 2.0% | ||||||
10,232 | Aerie Pharmaceuticals Inc., (2) | 450,719 | ||||
26,268 | Prestige Brands Holdings Inc., (2) | 1,508,046 | ||||
Total Pharmaceuticals | 1,958,765 | |||||
Professional Services – 1.3% | ||||||
41,587 | Korn Ferry International | 1,347,419 | ||||
Road & Rail – 1.2% | ||||||
47,433 | Swift Transportation Company, (2) | 1,165,903 | ||||
Semiconductors & Semiconductor Equipment – 6.5% | ||||||
23,293 | MA-COM Technology Solutions Holdings Incorporated, (2) | 1,138,562 | ||||
27,575 | Mellanox Technologies, Limited, (2), (3) | 1,301,540 |
Shares | Description (1) | Value | ||||
Semiconductors & Semiconductor Equipment (continued) | ||||||
28,105 | Microsemi Corporation, (2) | $1,319,249 | ||||
15,938 | MKS Instruments Inc. | 1,247,148 | ||||
44,586 | Semtech Corporation, (2) | 1,522,612 | ||||
Total Semiconductors & Semiconductor Equipment | 6,529,111 | |||||
Software – 7.4% | ||||||
35,120 | Broadsoft Inc., (2) | 1,348,608 | ||||
30,189 | CommVault Systems, Inc., (2) | 1,523,035 | ||||
25,502 | Cyberark Software Limited, (2), (3) | 1,349,311 | ||||
17,528 | Proofpoint, Incorporated, (2) | 1,321,085 | ||||
56,013 | Synchronoss Technologies, Inc., (2) | 896,208 | ||||
14,920 | Take-Two Interactive Software, Inc., (2) | 937,722 | ||||
591,081 | VideoPropulsion Inc., (2), (4) | 1 | ||||
Total Software | 7,375,970 | |||||
Specialty Retail – 1.0% | ||||||
47,170 | Tile Shop Holdings Inc. | 1,007,080 | ||||
Textiles, Apparel & Luxury Goods – 1.4% | ||||||
36,347 | Steven Madden Limited, (2) | 1,383,003 | ||||
Trading Companies & Distributors – 1.3% | ||||||
56,101 | BMC Stock Holdings Inc., (2) | 1,307,153 | ||||
Total Long-Term Investments (cost $78,834,383) | 96,168,313 |
Shares | Description (1) | Value | ||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 13.4% | ||||||
MONEY MARKET FUNDS – 13.4% | ||||||
13,352,652 | First American Government Obligations Fund, Class X, 0.677%, (5), (6) | $ 13,352,652 | ||||
Total Investments Purchased with Collateral from Securities Lending (cost $13,352,652) | 13,352,652 |
Shares | Description (1) | Value | ||||
SHORT-TERM INVESTMENTS – 2.9% | ||||||
MONEY MARKET FUNDS – 2.9% | ||||||
2,880,641 | First American Treasury Obligations Fund, Class Z, 0.626%, (5) | $ 2,880,641 | ||||
Total Short-Term Investments (cost $2,880,641) | 2,880,641 | |||||
Total Investments (cost $95,067,676) – 112.4% | 112,401,606 | |||||
Other Assets Less Liabilities – (12.4)% | (12,375,840) | |||||
Net Assets – 100% | $ 100,025,766 |
Portfolio of Investments | April 30, 2017 (Unaudited) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. | |
(3) | Investment, 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 $13,078,984. | |
(4) | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2 - Investment Valuation and Fair Value Measurements for more information. | |
(5) | The rate shown is the annualized seven-day subsidized 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. |
Assets and Liabilities
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Assets | |||
Long-term investments, at value (cost $200,944,506, $656,313,591 and $78,834,383, respectively) | $300,297,115 | $797,812,408 | $ 96,168,313 |
Investment purchased with collateral from securities lending, at value (cost approximates value) | 8,080,916 | 29,470,847 | 13,352,652 |
Short-term investments, at value (cost approximates value) | 725,878 | 3,862,112 | 2,880,641 |
Receivable for: | |||
Dividends | 84,097 | 221,834 | 2,358 |
Due from broker | 484 | 17,678 | 5,485 |
Interest | 249 | 3,120 | 1,280 |
Investments sold | — | 13,964,806 | 1,590,240 |
Shares sold | 291,298 | 547,043 | 122,105 |
Other assets | 58,141 | 84,389 | 28,325 |
Total assets | 309,538,178 | 845,984,237 | 114,151,399 |
Liabilities | |||
Payable for: | |||
Collateral from securities lending program | 8,080,916 | 29,470,847 | 13,352,652 |
Investments purchased | — | 9,666,793 | 619,015 |
Shares redeemed | 1,171,581 | 1,820,953 | 26,978 |
Accrued expenses: | |||
Directors fees | 23,411 | 54,783 | 799 |
Management fees | 158,820 | 448,626 | 60,923 |
12b-1 distribution and service fees | 28,893 | 78,816 | 9,265 |
Other | 180,181 | 556,678 | 56,001 |
Total liabilities | 9,643,802 | 42,097,496 | 14,125,633 |
Net assets | $299,894,376 | $803,886,741 | $100,025,766 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Class A Shares | |||
Net assets | $ 90,625,986 | $250,182,662 | $ 33,689,317 |
Shares outstanding | 3,017,033 | 6,403,346 | 1,460,144 |
Net asset value ("NAV") per share | $ 30.04 | $ 39.07 | $ 23.07 |
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | $ 31.87 | $ 41.45 | $ 24.48 |
Class C Shares | |||
Net assets | $ 10,011,448 | $ 16,199,496 | $ 2,283,672 |
Shares outstanding | 415,505 | 528,698 | 123,508 |
NAV and offering price per share | $ 24.09 | $ 30.64 | $ 18.49 |
Class R3 Shares | |||
Net assets | $ 6,593,514 | $ 36,777,278 | $ 1,571,719 |
Shares outstanding | 231,448 | 998,692 | 71,573 |
NAV and offering price per share | $ 28.49 | $ 36.83 | $ 21.96 |
Class R6 Shares | |||
Net assets | $ 15,290,830 | $ 72,136,443 | $ 20,250,629 |
Shares outstanding | 459,912 | 1,568,641 | 758,865 |
NAV and offering price per share | $ 33.25 | $ 45.99 | $ 26.69 |
Class I Shares | |||
Net assets | $177,372,598 | $428,590,862 | $ 42,230,429 |
Shares outstanding | 5,366,586 | 9,383,840 | 1,584,570 |
NAV and offering price per share | $ 33.05 | $ 45.67 | $ 26.65 |
Net assets consist of: | |||
Capital paid-in | $166,866,722 | $598,307,878 | $ 76,856,194 |
Undistributed (Over-distribution of) net investment income | (221,741) | (3,367,550) | (576,947) |
Accumulated net realized gain (loss) | 33,896,786 | 67,447,596 | 6,412,589 |
Net unrealized appreciation (depreciation) | 99,352,609 | 141,498,817 | 17,333,930 |
Net assets | $299,894,376 | $803,886,741 | $100,025,766 |
Authorized shares–per class | 2 billion | 2 billion | 2 billion |
Par value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Operations
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Investment Income | |||
Dividend and interest income | $ 1,381,944 | $ 2,752,679 | $ 265,664 |
Securities lending income, net | 3,993 | 104,984 | 43,744 |
Total investment income | 1,385,937 | 2,857,663 | 309,408 |
Expenses | |||
Management fees | 1,029,145 | 3,384,844 | 406,170 |
12b-1 service fees - Class A Shares | 111,444 | 339,471 | 41,731 |
12b-1 distibution and service fees - Class C Shares | 48,328 | 82,673 | 10,517 |
12b-1 distibution and service fees - Class R3 Shares | 16,133 | 129,219 | 3,882 |
Shareholder servicing agent fees | 198,853 | 690,145 | 57,157 |
Custodian fees | 16,993 | 46,917 | 7,712 |
Directors fees | 4,620 | 13,517 | 1,485 |
Professional fees | 21,438 | 34,672 | 18,428 |
Shareholder reporting expenses | 26,462 | 38,462 | 15,626 |
Federal and state registration fees | 44,040 | 44,553 | 39,159 |
Other | 8,515 | 10,686 | 1,505 |
Total expenses before fee waiver/expense reimbursement | 1,525,971 | 4,815,159 | 603,372 |
Fee waiver/expense reimbursement | (27,101) | (290,109) | (38,147) |
Net expenses | 1,498,870 | 4,525,050 | 565,225 |
Net investment income (loss) | (112,933) | (1,667,387) | (255,817) |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) from investments | 34,565,130 | 72,812,656 | 6,895,832 |
Change in net unrealized appreciation (depreciation) of investments | 8,852,305 | 38,392,633 | 7,753,450 |
Net realized and unrealized gain (loss) | 43,417,435 | 111,205,289 | 14,649,282 |
Net increase (decrease) in net assets from operations | $43,304,502 | $109,537,902 | $14,393,465 |
Changes in Net Assets
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | ||||||
Six Months Ended 4/30/17 | Year Ended 10/31/16 | Six Months Ended 4/30/17 | Year Ended 10/31/16 | Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||
Operations | ||||||||
Net investment income (loss) | $ (112,933) | $ (40,187) | $ (1,667,387) | $ (2,040,836) | $ (255,817) | $ (344,359) | ||
Net realized gain (loss) from investments | 34,565,130 | 44,904,829 | 72,812,656 | 39,438,510 | 6,895,832 | 230,549 | ||
Change in net unrealized appreciation (depreciation) of investments | 8,852,305 | (55,738,026) | 38,392,633 | (84,112,052) | 7,753,450 | 1,751,276 | ||
Net increase (decrease) in net assets from operations | 43,304,502 | (10,873,384) | 109,537,902 | (46,714,378) | 14,393,465 | 1,637,466 | ||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A Shares | — | (1,326,762) | — | — | — | — | ||
Class C Shares | — | (44,124) | — | — | — | — | ||
Class R3 Shares | — | (69,770) | — | — | — | — | ||
Class R6 Shares | — | (252,750) | — | — | — | — | ||
Class I Shares | — | (4,043,340) | — | — | — | — | ||
From accumulated net realized gains: | ||||||||
Class A Shares | (11,360,191) | (20,516,896) | (12,685,309) | (29,764,786) | (147,666) | (3,119,388) | ||
Class C Shares | (1,496,847) | (3,078,627) | (947,963) | (2,169,779) | (11,170) | (257,365) | ||
Class R3 Shares | (857,003) | (1,454,143) | (2,649,483) | (5,269,991) | (7,181) | (141,730) | ||
Class R6 Shares | (1,808,945) | (3,020,951) | (1,941,792) | (2,160,039) | (75,588) | — | ||
Class I Shares | (21,137,189) | (50,204,420) | (18,975,080) | (50,466,827) | (144,489) | (5,003,863) | ||
Decrease in net assets from distributions to shareholders | (36,660,175) | (84,011,783) | (37,199,627) | (89,831,422) | (386,094) | (8,522,346) | ||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 16,246,059 | 41,124,698 | 65,066,387 | 168,865,444 | 10,147,297 | 29,902,736 | ||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 29,749,462 | 60,048,952 | 34,647,413 | 81,262,369 | 326,000 | 7,074,849 | ||
45,995,521 | 101,173,650 | 99,713,800 | 250,127,813 | 10,473,297 | 36,977,585 | |||
Cost of shares redeemed | (72,516,995) | (153,233,088) | (263,320,071) | (422,698,529) | (13,304,558) | (41,285,778) | ||
Net increase (decrease) in net assets from Fund share transactions | (26,521,474) | (52,059,438) | (163,606,271) | (172,570,716) | (2,831,261) | (4,308,193) | ||
Net increase (decrease) in net assets | (19,877,147) | (146,944,605) | (91,267,996) | (309,116,516) | 11,176,110 | (11,193,073) | ||
Net assets at the beginning of period | 319,771,523 | 466,716,128 | 895,154,737 | 1,204,271,253 | 88,849,656 | 100,042,729 | ||
Net assets at the end of period | $299,894,376 | $ 319,771,523 | $ 803,886,741 | $ 895,154,737 | $100,025,766 | $ 88,849,656 | ||
Undistributed (Over-distribution of) net investment income at the end of period | $ (221,741) | $ (108,808) | $ (3,367,550) | $ (1,700,163) | $ (576,947) | $ (321,130) |
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||
Class (Commencement Date) Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | |
Class A (01/95) | |||||||||
2017(e) | $29.69 | $(0.03) | $ 4.16 | $ 4.13 | $ — | $(3.78) | $(3.78) | $30.04 | |
2016 | 37.55 | (0.05) | (0.73) | (0.78) | (0.36) | (6.72) | (7.08) | 29.69 | |
2015 | 40.48 | (0.05) | 3.99 | 3.94 | — | (6.87) | (6.87) | 37.55 | |
2014 | 43.26 | (0.16) | 4.12 | 3.96 | — | (6.74) | (6.74) | 40.48 | |
2013 | 34.09 | (0.05) | 9.63 | 9.58 | — | (0.41) | (0.41) | 43.26 | |
2012 | 32.92 | (0.13) | 2.46 | 2.33 | — | (1.16) | (1.16) | 34.09 | |
Class C (09/01) | |||||||||
2017(e) | 24.63 | (0.11) | 3.35 | 3.24 | — | (3.78) | (3.78) | 24.09 | |
2016 | 32.27 | (0.23) | (0.61) | (0.84) | (0.08) | (6.72) | (6.80) | 24.63 | |
2015 | 35.97 | (0.30) | 3.47 | 3.17 | — | (6.87) | (6.87) | 32.27 | |
2014 | 39.42 | (0.40) | 3.69 | 3.29 | — | (6.74) | (6.74) | 35.97 | |
2013 | 31.34 | (0.31) | 8.80 | 8.49 | — | (0.41) | (0.41) | 39.42 | |
2012 | 30.57 | (0.35) | 2.28 | 1.93 | — | (1.16) | (1.16) | 31.34 | |
Class R3 (11/00) | |||||||||
2017(e) | 28.38 | (0.06) | 3.95 | 3.89 | — | (3.78) | (3.78) | 28.49 | |
2016 | 36.18 | (0.12) | (0.70) | (0.82) | (0.26) | (6.72) | (6.98) | 28.38 | |
2015 | 39.33 | (0.17) | 3.89 | 3.72 | — | (6.87) | (6.87) | 36.18 | |
2014 | 42.32 | (0.25) | 4.00 | 3.75 | — | (6.74) | (6.74) | 39.33 | |
2013 | 33.44 | (0.14) | 9.43 | 9.29 | — | (0.41) | (0.41) | 42.32 | |
2012 | 32.39 | (0.22) | 2.43 | 2.21 | — | (1.16) | (1.16) | 33.44 | |
Class R6 (02/13) | |||||||||
2017(e) | 32.42 | 0.02 | 4.59 | 4.61 | — | (3.78) | (3.78) | 33.25 | |
2016 | 40.35 | 0.06 | (0.78) | (0.72) | (0.49) | (6.72) | (7.21) | 32.42 | |
2015 | 42.85 | 0.07 | 4.30 | 4.37 | — | (6.87) | (6.87) | 40.35 | |
2014 | 45.27 | (0.02) | 4.34 | 4.32 | — | (6.74) | (6.74) | 42.85 | |
2013(f) | 37.47 | (0.02) | 7.82 | 7.80 | — | — | — | 45.27 | |
Class I (12/92) | |||||||||
2017(e) | 32.27 | 0.01 | 4.55 | 4.56 | — | (3.78) | (3.78) | 33.05 | |
2016 | 40.23 | 0.03 | (0.79) | (0.76) | (0.48) | (6.72) | (7.20) | 32.27 | |
2015 | 42.78 | 0.02 | 4.30 | 4.32 | — | (6.87) | (6.87) | 40.23 | |
2014 | 45.24 | (0.06) | 4.34 | 4.28 | — | (6.74) | (6.74) | 42.78 | |
2013 | 35.55 | 0.06 | 10.04 | 10.10 | — | (0.41) | (0.41) | 45.24 | |
2012 | 34.19 | (0.04) | 2.56 | 2.52 | — | (1.16) | (1.16) | 35.55 |
Ratios/Supplemental Data | |||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | ||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | |
15.53% | $ 90,626 | 1.16%* | (0.24)%* | 1.14%* | (0.22)%* | 61% | |
(2.49) | 92,208 | 1.22 | (0.16) | 1.22 | (0.16) | 60 | |
11.75 | 117,688 | 1.25 | (0.13) | 1.25 | (0.13) | 79 | |
10.50 | 143,891 | 1.25 | (0.40) | 1.25 | (0.40) | 66 | |
28.39 | 165,791 | 1.24 | (0.14) | 1.24 | (0.14) | 72 | |
7.66 | 134,788 | 1.26 | (0.42) | 1.23 | (0.39) | 73 | |
15.06 | 10,011 | 1.91* | (0.98)* | 1.89* | (0.96)* | 61 | |
(3.21) | 10,599 | 1.97 | (0.91) | 1.97 | (0.91) | 60 | |
10.92 | 14,575 | 2.00 | (0.95) | 2.00 | (0.95) | 79 | |
9.73 | 14,462 | 2.00 | (1.15) | 2.00 | (1.15) | 66 | |
27.43 | 14,963 | 1.99 | (0.89) | 1.99 | (0.89) | 72 | |
6.88 | 11,193 | 2.01 | (1.16) | 1.98 | (1.14) | 73 | |
15.39 | 6,594 | 1.41* | (0.49)* | 1.39* | (0.47)* | 61 | |
(2.73) | 6,457 | 1.47 | (0.41) | 1.47 | (0.41) | 60 | |
11.47 | 7,996 | 1.50 | (0.48) | 1.50 | (0.48) | 79 | |
10.22 | 8,724 | 1.50 | (0.64) | 1.50 | (0.64) | 66 | |
28.07 | 11,320 | 1.49 | (0.39) | 1.49 | (0.39) | 72 | |
7.40 | 9,658 | 1.51 | (0.70) | 1.48 | (0.67) | 73 | |
15.72 | 15,291 | 0.79* | 0.13* | 0.77* | 0.15* | 61 | |
(2.14) | 15,869 | 0.87 | 0.19 | 0.87 | 0.19 | 60 | |
12.14 | 18,632 | 0.91 | 0.17 | 0.91 | 0.17 | 79 | |
10.90 | 22,672 | 0.90 | (0.05) | 0.90 | (0.05) | 66 | |
20.82 | 28,966 | 0.91* | (0.06)* | 0.91* | (0.06)* | 72 | |
15.63 | 177,373 | 0.91* | 0.02* | 0.89* | 0.04* | 61 | |
(2.24) | 194,640 | 0.97 | 0.10 | 0.97 | 0.10 | 60 | |
12.05 | 307,826 | 1.00 | 0.05 | 1.00 | 0.05 | 79 | |
10.78 | 375,471 | 1.00 | (0.15) | 1.00 | (0.15) | 66 | |
28.69 | 403,480 | 0.99 | 0.14 | 0.99 | 0.14 | 72 | |
7.94 | 418,144 | 1.01 | (0.13) | 0.98 | (0.11) | 73 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
(f) | For the period February 28, 2013 (commencement of operations) through October 31, 2013. |
* | Annualized. |
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||
Class (Commencement Date) Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | |
Class A (01/95) | |||||||||
2017(e) | $36.09 | $(0.10) | $ 4.75 | $ 4.65 | $ — | $(1.67) | $(1.67) | $39.07 | |
2016 | 40.91 | (0.12) | (1.36) | (1.48) | — | (3.34) | (3.34) | 36.09 | |
2015 | 47.67 | (0.31) | 1.72 | 1.41 | — | (8.17) | (8.17) | 40.91 | |
2014 | 51.11 | (0.38) | 6.09 | 5.71 | — | (9.15) | (9.15) | 47.67 | |
2013 | 42.38 | (0.17) | 12.05 | 11.88 | — | (3.15) | (3.15) | 51.11 | |
2012 | 41.36 | (0.16) | 2.77 | 2.61 | — | (1.59) | (1.59) | 42.38 | |
Class C (09/01) | |||||||||
2017(e) | 28.74 | (0.19) | 3.76 | 3.57 | — | (1.67) | (1.67) | 30.64 | |
2016 | 33.50 | (0.31) | (1.11) | (1.42) | — | (3.34) | (3.34) | 28.74 | |
2015 | 40.77 | (0.52) | 1.42 | 0.90 | — | (8.17) | (8.17) | 33.50 | |
2014 | 45.29 | (0.63) | 5.26 | 4.63 | — | (9.15) | (9.15) | 40.77 | |
2013 | 38.17 | (0.45) | 10.72 | 10.27 | — | (3.15) | (3.15) | 45.29 | |
2012 | 37.70 | (0.43) | 2.49 | 2.06 | — | (1.59) | (1.59) | 38.17 | |
Class R3 (12/00) | |||||||||
2017(e) | 34.14 | (0.13) | 4.49 | 4.36 | — | (1.67) | (1.67) | 36.83 | |
2016 | 38.98 | (0.20) | (1.30) | (1.50) | — | (3.34) | (3.34) | 34.14 | |
2015 | 45.90 | (0.40) | 1.65 | 1.25 | — | (8.17) | (8.17) | 38.98 | |
2014 | 49.65 | (0.49) | 5.89 | 5.40 | — | (9.15) | (9.15) | 45.90 | |
2013 | 41.35 | (0.27) | 11.72 | 11.45 | — | (3.15) | (3.15) | 49.65 | |
2012 | 40.50 | (0.27) | 2.71 | 2.44 | — | (1.59) | (1.59) | 41.35 | |
Class R6 (02/13) | |||||||||
2017(e) | 42.11 | (0.03) | 5.58 | 5.55 | — | (1.67) | (1.67) | 45.99 | |
2016 | 47.00 | 0.06 | (1.61) | (1.55) | — | (3.34) | (3.34) | 42.11 | |
2015 | 53.36 | (0.16) | 1.97 | 1.81 | — | (8.17) | (8.17) | 47.00 | |
2014 | 55.97 | (0.23) | 6.77 | 6.54 | — | (9.15) | (9.15) | 53.36 | |
2013(f) | 46.61 | (0.05) | 9.41 | 9.36 | — | — | — | 55.97 | |
Class I (12/89) | |||||||||
2017(e) | 41.87 | (0.06) | 5.53 | 5.47 | — | (1.67) | (1.67) | 45.67 | |
2016 | 46.81 | (0.04) | (1.56) | (1.60) | — | (3.34) | (3.34) | 41.87 | |
2015 | 53.24 | (0.23) | 1.97 | 1.74 | — | (8.17) | (8.17) | 46.81 | |
2014 | 55.93 | (0.29) | 6.75 | 6.46 | — | (9.15) | (9.15) | 53.24 | |
2013 | 45.97 | (0.06) | 13.17 | 13.11 | — | (3.15) | (3.15) | 55.93 | |
2012 | 44.62 | (0.06) | 3.00 | 2.94 | — | (1.59) | (1.59) | 45.97 |
Ratios/Supplemental Data | |||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | ||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | |
13.20% | $250,183 | 1.24%* | (0.58)%* | 1.17%* | (0.52)%* | 67% | |
(3.78) | 280,681 | 1.29 | (0.35) | 1.27 | (0.33) | 89 | |
3.68 | 365,394 | 1.30 | (0.72) | 1.30 | (0.72) | 118 | |
12.89 | 371,601 | 1.30 | (0.81) | 1.30 | (0.81) | 106 | |
30.27 | 355,086 | 1.30 | (0.38) | 1.29 | (0.38) | 108 | |
6.88 | 306,507 | 1.30 | (0.42) | 1.27 | (0.39) | 113 | |
12.80 | 16,199 | 1.99* | (1.34)* | 1.92* | (1.28)* | 67 | |
(4.50) | 16,956 | 2.04 | (1.10) | 2.02 | (1.08) | 89 | |
2.91 | 22,284 | 2.05 | (1.47) | 2.05 | (1.47) | 118 | |
12.01 | 24,304 | 2.05 | (1.56) | 2.05 | (1.56) | 106 | |
29.33 | 22,181 | 2.05 | (1.14) | 2.04 | (1.13) | 108 | |
6.06 | 17,874 | 2.05 | (1.16) | 2.02 | (1.13) | 113 | |
13.07 | 36,777 | 1.48* | (0.79)* | 1.42* | (0.73)* | 67 | |
(4.04) | 55,093 | 1.54 | (0.59) | 1.52 | (0.57) | 89 | |
3.43 | 54,866 | 1.55 | (0.98) | 1.55 | (0.98) | 118 | |
12.59 | 64,262 | 1.55 | (1.10) | 1.55 | (1.10) | 106 | |
29.97 | 47,168 | 1.55 | (0.63) | 1.54 | (0.63) | 108 | |
6.59 | 38,869 | 1.55 | (0.67) | 1.52 | (0.64) | 113 | |
13.46 | 72,136 | 0.84* | (0.22)* | 0.76* | (0.15)* | 67 | |
(3.41) | 50,677 | 0.89 | 0.12 | 0.86 | 0.14 | 89 | |
4.09 | 31,167 | 0.92 | (0.33) | 0.92 | (0.33) | 118 | |
13.31 | 16,192 | 0.92 | (0.44) | 0.92 | (0.44) | 106 | |
20.12 | 25,874 | 0.92* | (0.14)* | 0.92* | (0.14)* | 108 | |
13.34 | 428,591 | 0.99* | (0.33)* | 0.92* | (0.27)* | 67 | |
(3.54) | 491,747 | 1.04 | (0.10) | 1.02 | (0.08) | 89 | |
3.95 | 730,560 | 1.05 | (0.47) | 1.05 | (0.47) | 118 | |
13.15 | 814,636 | 1.05 | (0.56) | 1.05 | (0.56) | 106 | |
30.60 | 776,915 | 1.05 | (0.13) | 1.04 | (0.12) | 108 | |
7.13 | 744,480 | 1.05 | (0.17) | 1.02 | (0.14) | 113 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
(f) | For the period February 28, 2013 (commencement of operations) through October 31, 2013. |
* | Annualized. |
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||
Class (Commencement Date) Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | |
Class A (08/95) | |||||||||
2017(e) | $19.90 | $(0.08) | $3.35 | $ 3.27 | $ — | $(0.10) | $(0.10) | $23.07 | |
2016 | 21.57 | (0.10) | 0.45 | 0.35 | — | (2.02) | (2.02) | 19.90 | |
2015 | 24.41 | (0.22) | 0.33 | 0.11 | — | (2.95) | (2.95) | 21.57 | |
2014 | 27.13 | (0.26) | 2.35 | 2.09 | — | (4.81) | (4.81) | 24.41 | |
2013 | 21.25 | (0.26) | 7.93 | 7.67 | — | (1.79) | (1.79) | 27.13 | |
2012 | 20.41 | (0.21) | 1.35 | 1.14 | — | (0.30) | (0.30) | 21.25 | |
Class C (09/01) | |||||||||
2017(e) | 16.02 | (0.13) | 2.70 | 2.57 | — | (0.10) | (0.10) | 18.49 | |
2016 | 17.89 | (0.20) | 0.35 | 0.15 | — | (2.02) | (2.02) | 16.02 | |
2015 | 20.89 | (0.33) | 0.28 | (0.05) | — | (2.95) | (2.95) | 17.89 | |
2014 | 24.05 | (0.38) | 2.03 | 1.65 | — | (4.81) | (4.81) | 20.89 | |
2013 | 19.17 | (0.38) | 7.05 | 6.67 | — | (1.79) | (1.79) | 24.05 | |
2012 | 18.58 | (0.34) | 1.23 | 0.89 | — | (0.30) | (0.30) | 19.17 | |
Class R3 (12/00) | |||||||||
2017(e) | 18.97 | (0.10) | 3.19 | 3.09 | — | (0.10) | (0.10) | 21.96 | |
2016 | 20.71 | (0.14) | 0.42 | 0.28 | — | (2.02) | (2.02) | 18.97 | |
2015 | 23.60 | (0.27) | 0.33 | 0.06 | — | (2.95) | (2.95) | 20.71 | |
2014 | 26.45 | (0.31) | 2.27 | 1.96 | — | (4.81) | (4.81) | 23.60 | |
2013 | 20.81 | (0.30) | 7.73 | 7.43 | — | (1.79) | (1.79) | 26.45 | |
2012 | 20.04 | (0.26) | 1.33 | 1.07 | — | (0.30) | (0.30) | 20.81 | |
Class R6 (06/16) | |||||||||
2017(e) | 22.96 | (0.04) | 3.87 | 3.83 | — | (0.10) | (0.10) | 26.69 | |
2016(f) | 21.63 | (0.02) | 1.35 | 1.33 | — | — | — | 22.96 | |
Class I (08/95) | |||||||||
2017(e) | 22.94 | (0.06) | 3.87 | 3.81 | — | (0.10) | (0.10) | 26.65 | |
2016 | 24.51 | (0.06) | 0.51 | 0.45 | — | (2.02) | (2.02) | 22.94 | |
2015 | 27.26 | (0.19) | 0.39 | 0.20 | — | (2.95) | (2.95) | 24.51 | |
2014 | 29.68 | (0.23) | 2.62 | 2.39 | — | (4.81) | (4.81) | 27.26 | |
2013 | 23.03 | (0.21) | 8.65 | 8.44 | — | (1.79) | (1.79) | 29.68 | |
2012 | 22.04 | (0.17) | 1.46 | 1.29 | — | (0.30) | (0.30) | 23.03 |
Ratios/Supplemental Data | |||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | ||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | |
16.44% | $33,689 | 1.42%* | (0.77)%* | 1.34%* | (0.69)%* | 45% | |
1.90 | 31,255 | 1.48 | (0.58) | 1.42 | (0.52) | 106 | |
0.72 | 33,922 | 1.50 | (1.00) | 1.47 | (0.97) | 128 | |
9.07 | 38,990 | 1.57 | (1.19) | 1.47 | (1.09) | 125 | |
39.22 | 40,965 | 1.55 | (1.17) | 1.46 | (1.09) | 119 | |
5.73 | 35,306 | 1.72 | (1.21) | 1.47 | (0.97) | 118 | |
16.05 | 2,284 | 2.17* | (1.52)* | 2.09* | (1.44)* | 45 | |
1.10 | 1,971 | 2.23 | (1.32) | 2.18 | (1.27) | 106 | |
(0.03) | 2,278 | 2.25 | (1.75) | 2.22 | (1.72) | 128 | |
8.26 | 2,250 | 2.32 | (1.94) | 2.22 | (1.84) | 125 | |
38.17 | 2,350 | 2.30 | (1.91) | 2.22 | (1.83) | 119 | |
4.93 | 1,568 | 2.46 | (1.96) | 2.22 | (1.72) | 118 | |
16.29 | 1,572 | 1.67* | (1.02)* | 1.59* | (0.94)* | 45 | |
1.62 | 1,631 | 1.73 | (0.83) | 1.67 | (0.78) | 106 | |
0.50 | 1,439 | 1.75 | (1.26) | 1.72 | (1.23) | 128 | |
8.77 | 2,077 | 1.82 | (1.44) | 1.72 | (1.34) | 125 | |
38.86 | 1,941 | 1.80 | (1.40) | 1.72 | (1.32) | 119 | |
5.48 | 2,395 | 1.96 | (1.46) | 1.72 | (1.22) | 118 | |
16.64 | 20,251 | 1.05* | (0.40)* | 0.97* | (0.32)* | 45 | |
6.15 | 19,524 | 1.02* | (0.29)* | 0.96* | (0.23)* | 106 | |
16.61 | 42,230 | 1.17* | (0.53)* | 1.09* | (0.45)* | 45 | |
2.10 | 34,468 | 1.24 | (0.32) | 1.19 | (0.26) | 106 | |
1.00 | 62,403 | 1.25 | (0.75) | 1.22 | (0.71) | 128 | |
9.34 | 62,887 | 1.32 | (0.94) | 1.22 | (0.84) | 125 | |
39.55 | 48,141 | 1.30 | (0.90) | 1.22 | (0.82) | 119 | |
5.99 | 48,111 | 1.47 | (0.96) | 1.22 | (0.72) | 118 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
(f) | For the period June 30, 2016 (commencement of operations) through October 31, 2016. |
* | Annualized. |
Financial Statements (Unaudited)
Large Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total |
Long-Term Investments*: | ||||
Common Stocks | $300,297,115 | $ — | $ — | $300,297,115 |
Investments Purchased with Collateral from Securities Lending | 8,080,916 | — | — | 8,080,916 |
Short-Term Investments: | ||||
Money Market Funds | 725,878 | — | — | 725,878 |
Total | $309,103,909 | $ — | $ — | $309,103,909 |
Mid Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total |
Long-Term Investments*: | ||||
Common Stocks | $791,515,972 | $ — | $ — | $791,515,972 |
Exchange-Traded Funds | 6,296,436 | — | — | 6,296,436 |
Investments Purchased with Collateral from Securities Lending | 29,470,847 | — | — | 29,470,847 |
Short-Term Investments: | ||||
Money Market Funds | 3,862,112 | — | — | 3,862,112 |
Total | $831,145,367 | $ — | $ — | $831,145,367 |
Small Cap Growth Opportunities | Level 1 | Level 2 | Level 3 | Total |
Long-Term Investments*: | ||||
Common Stocks | $ 96,168,312 | $ — | $ 1** | $ 96,168,313 |
Investments Purchased with Collateral from Securities Lending | 13,352,652 | — | — | 13,352,652 |
Short-Term Investments: | ||||
Money Market Funds | 2,880,641 | — | — | 2,880,641 |
Total | $112,401,605 | $ — | $ 1 | $112,401,606 |
* | Refer to the Fund's Portfolio of Investments for industry classifications. |
** | Refer to the Fund's Portfolio of Investments for securities classified as Level 3. |
(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. |
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure |
Large Cap Growth Opportunities | Common Stocks | $7,969,028 | $(7,969,028) | $ — |
Mid Cap Growth Opportunities | ||||
Common Stocks | $24,266,524 | $(24,266,524) | $ — | |
Exchange-Traded Funds | 3,929,200 | (3,929,200) | — | |
Total | $28,195,724 | $(28,195,724) | $ — | |
Small Cap Growth Opportunities | Common Stocks | $13,078,984 | $(13,078,984) | $ — |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Securities lending fees paid | $ — | $ — | $4,591 |
Six Months Ended 4/30/17 | Year Ended 10/31/16 | ||||
Large Cap Growth Opportunities | Shares | Amount | Shares | Amount | |
Shares sold: | |||||
Class A | 93,768 | $ 2,671,814 | 298,709 | $ 9,006,187 | |
Class C | 33,875 | 762,779 | 96,601 | 2,511,881 | |
Class R3 | 19,261 | 516,695 | 51,879 | 1,496,322 | |
Class R6 | 4,394 | 136,820 | 41,020 | 1,330,519 | |
Class I | 388,976 | 12,157,951 | 786,069 | 26,779,789 | |
Shares issued to shareholders due to reinvestment of distributions: | |||||
Class A | 418,521 | 11,145,224 | 698,514 | 21,462,783 | |
Class C | 54,435 | 1,165,989 | 91,518 | 2,328,427 | |
Class R3 | 29,757 | 752,259 | 48,358 | 1,419,840 | |
Class R6 | 61,445 | 1,808,944 | 91,507 | 3,068,118 | |
Class I | 508,096 | 14,877,046 | 951,156 | 31,769,784 | |
1,612,528 | 45,995,521 | 3,155,331 | 101,173,650 | ||
Shares redeemed: | |||||
Class A | (600,572) | (17,001,070) | (1,025,885) | (31,271,276) | |
Class C | (103,139) | (2,381,185) | (209,415) | (5,204,689) | |
Class R3 | (45,055) | (1,211,601) | (93,721) | (2,614,137) | |
Class R6 | (95,441) | (2,985,321) | (104,797) | (3,555,621) | |
Class I | (1,562,931) | (48,937,818) | (3,357,144) | (110,587,365) | |
(2,407,138) | (72,516,995) | (4,790,962) | (153,233,088) | ||
Net increase (decrease) | (794,610) | $(26,521,474) | (1,635,631) | $ (52,059,438) |
Six Months Ended 4/30/17 | Year Ended 10/31/16 | ||||
Mid Cap Growth Opportunities | Shares | Amount | Shares | Amount | |
Shares sold: | |||||
Class A | 403,227 | $ 15,153,708 | 1,286,993 | $ 46,257,083 | |
Class C | 21,377 | 632,541 | 49,057 | 1,433,532 | |
Class R3 | 124,846 | 4,404,664 | 930,527 | 31,797,493 | |
Class R6 | 525,722 | 22,354,393 | 748,186 | 31,832,382 | |
Class I | 512,552 | 22,521,081 | 1,389,963 | 57,544,954 | |
Shares issued to shareholders due to reinvestment of distributions: | |||||
Class A | 338,790 | 12,416,659 | 792,841 | 29,200,332 | |
Class C | 30,334 | 874,224 | 66,705 | 1,969,787 | |
Class R3 | 76,052 | 2,629,881 | 149,955 | 5,236,446 | |
Class R6 | 45,085 | 1,941,793 | 49,885 | 2,136,595 | |
Class I | 392,169 | 16,784,856 | 1,001,858 | 42,719,209 | |
2,470,154 | 99,713,800 | 6,465,970 | 250,127,813 | ||
Shares redeemed: | |||||
Class A | (2,116,807) | (79,136,547) | (3,233,940) | (117,025,698) | |
Class C | (112,960) | (3,331,109) | (190,972) | (5,612,585) | |
Class R3 | (815,736) | (29,005,366) | (874,522) | (29,582,220) | |
Class R6 | (205,563) | (9,141,877) | (257,869) | (10,831,697) | |
Class I | (3,266,247) | (142,705,172) | (6,254,743) | (259,646,329) | |
(6,517,313) | (263,320,071) | (10,812,046) | (422,698,529) | ||
Net increase (decrease) | (4,047,159) | $(163,606,271) | (4,346,076) | $(172,570,716) |
Six Months Ended 4/30/17 | Year Ended 10/31/16 | ||||
Small Cap Growth Opportunities | Shares | Amount | Shares | Amount | |
Shares sold: | |||||
Class A | 69,788 | $ 1,549,142 | 86,880 | $ 1,652,635 | |
Class C | 14,499 | 258,472 | 12,361 | 175,990 | |
Class R3 | 6,921 | 145,410 | 55,049 | 1,026,498 | |
Class R6 – exchanges | — | — | 938,692 | 20,303,916 | |
Class I | 319,451 | 8,194,273 | 306,571 | 6,743,697 | |
Shares issued to shareholders due to reinvestment of distributions: | |||||
Class A | 6,530 | 143,536 | 156,382 | 3,021,304 | |
Class C | 630 | 11,123 | 15,927 | 249,421 | |
Class R3 | 342 | 7,155 | 7,678 | 141,728 | |
Class R6 | 2,978 | 75,588 | — | — | |
Class I | 3,494 | 88,598 | 164,750 | 3,662,396 | |
424,633 | 10,473,297 | 1,744,290 | 36,977,585 | ||
Shares redeemed: | |||||
Class A | (186,907) | (4,148,305) | (244,847) | (4,712,686) | |
Class C | (14,632) | (259,720) | (32,616) | (496,420) | |
Class R3 | (21,678) | (448,320) | (46,235) | (850,147) | |
Class R6 | (94,496) | (2,360,000) | (88,309) | (2,100,000) | |
Class I | (240,726) | (6,088,213) | (576,362) | (12,822,609) | |
Class I – exchanges | — | — | (938,692) | (20,303,916) | |
(558,439) | (13,304,558) | (1,927,061) | (41,285,778) | ||
Net increase (decrease) | (133,806) | $ (2,831,261) | (182,771) | $ (4,308,193) |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Purchases | $182,246,113 | $587,226,164 | $42,024,514 |
Sales | 243,011,599 | 792,637,523 | 46,111,427 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Cost of investments | $210,381,587 | $694,968,486 | $95,548,968 |
Gross unrealized: | |||
Appreciation | $100,513,056 | $146,133,191 | $19,346,012 |
Depreciation | (1,790,734) | (9,956,311) | (2,493,374) |
Net unrealized appreciation (depreciation) of investments | $ 98,722,322 | $136,176,880 | $16,852,638 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Capital paid-in | $ 4,957,977 | $(6,285,119) | $(19,569) |
Undistributed (Over-distribution of) net investment income | 219,610 | 7,066,760 | 23,229 |
Accumulated net realized gain (loss) | (5,177,587) | (781,641) | (3,660) |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Undistributed net ordinary income1 | $ — | $ — | $ — |
Undistributed net long-term capital gains | 36,622,106 | 37,156,491 | 384,131 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Distributions from net ordinary income1 | $ 5,517,136 | $ — | $1,799,025 |
Distributions from net long-term capital gains | 78,494,647 | 89,831,422 | 6,723,321 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Post-October capital losses2 | $ — | $ — | $ — |
Late-year ordinary losses3 | 86,548 | 1,650,071 | 321,130 |
2 | Capital losses incurred from November 1, 2015 through October 31, 2016, the Funds' last tax year end. |
3 | Ordinary losses incurred from January 1, 2016 through October 31, 2016 and/or specified losses incurred from November 1, 2015 through October 31, 2016. |
Average Daily Net Assets | Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities |
For the first $125 million | 0.5000% | 0.6000% | 0.6500% |
For the next $125 million | 0.4875 | 0.5875 | 0.6375 |
For the next $250 million | 0.4750 | 0.5750 | 0.6250 |
For the next $500 million | 0.4625 | 0.5625 | 0.6125 |
For the next $1 billion | 0.4500 | 0.5500 | 0.6000 |
For net assets over $2 billion | 0.4250 | 0.5250 | 0.5750 |
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 |
Fund | Expense Cap | Expense Cap Expiration Date |
Large Cap Growth Opportunities | 0.89% | February 28, 2018 |
Mid Cap Growth Opportunities | 0.92% | February 28, 2018 |
Small Cap Growth Opportunities | 1.09%* | February 28, 2018 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Sales charges collected | $14,026 | $28,640 | $13,414 |
Paid to financial intermediaries | 12,272 | 25,623 | 11,745 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
Commission advances | $857 | $4,332 | $1,145 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
12b-1 fees retained | $2,004 | $2,977 | $741 |
Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities | |
CDSC retained | $418 | $411 | $ — |
Average Daily Net Assets | Large Cap Growth Opportunities | Mid Cap Growth Opportunities | Small Cap Growth Opportunities |
For the first $125 million | 0.5000% | 0.6000% | 0.6500% |
For the next $125 million | 0.4875 | 0.5875 | 0.6375 |
For the next $250 million | 0.4750 | 0.5750 | 0.6250 |
For the next $500 million | 0.4625 | 0.5625 | 0.6125 |
For the next $1 billion | 0.4500 | 0.5500 | 0.6000 |
For the next $3 billion | 0.4250 | 0.5250 | 0.5750 |
For the next $2.5 billion | 0.4000 | 0.5000 | 0.5500 |
For the next $2.5 billion | 0.3875 | 0.4875 | 0.5375 |
For net assets of $10 billion and greater | 0.3750 | 0.4750 | 0.5250 |
Fund Information
Used in this Report
![](https://capedge.com/proxy/N-CSRS/0001193125-17-222608/g393364img4d8144da1.gif)
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Mutual Funds |
Nuveen Equity Funds
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| Semi-Annual Report April 30, 2017 |
Share Class / Ticker Symbol | ||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class I | ||||||||||
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Nuveen Large Cap Select Fund | FLRAX | FLYCX | — | FLRYX | ||||||||||
Nuveen Small Cap Select Fund | EMGRX | FHMCX | ASEIX | ARSTX |
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NUVEEN | 3 |
to Shareholders
Dear Shareholders,
Whether politics or the economy will prevail over the financial markets this year has been a much-analyzed question. After the U.S. presidential election, stocks rallied to new all-time highs, bonds tumbled, and business and consumer sentiment grew pointedly optimistic. But, to what extent the White House can translate rhetoric into stronger economic and corporate earnings growth remains to be seen. Stock prices have experienced upward momentum driven by positive economic news and earnings growth, inflation is ticking higher and interest rates are higher amid the Federal Reserve (Fed) rate hikes.
The Trump administration’s early policy decisions have caused the markets to reassess their outlooks, cooling the stock market rally and stabilizing bond prices. The White House’s pro-growth agenda of tax reform, infrastructure spending and deregulation remains on the table, but there is growing recognition that it may look different than Wall Street had initially expected. Additionally, Brexit negotiations in the U.K. face new uncertainties in light of the reshuffling of Parliament following the June snap election.
Nevertheless, there is a case for optimism. The jobs recovery, firming wages, the housing market and confidence measures are supportive of continued expansion in the economy. The Fed enacted a series of interest rate hikes in December 2016, March 2017 and June 2017, a vote of confidence that its employment and inflation targets are generally on track. Economies outside the U.S. have strengthened in recent months, possibly heralding the beginnings of a global synchronized recovery. Furthermore, the populist/nationalist undercurrent that helped deliver President Trump’s win and triggered the U.K.’s Brexit remained in the minority during both March’s Dutch general election and May’s French presidential election, easing the political uncertainty surrounding Germany’s elections later this year.
In the meantime, the markets will be focused on economic sentiment surveys along with “hard” data such as consumer and business spending to gauge the economy’s progress. With the Fed now firmly in tightening mode, rate moves that are more aggressive than expected could spook the markets and potentially stifle economic growth. On the political economic front, President Trump’s other signature platform plank, protectionism, is arguably anti-growth. We expect some churning in the markets as these issues sort themselves out.
Market volatility readings have been remarkably low of late, but conditions can change quickly. As market conditions evolve, Nuveen remains committed to rigorously assessing opportunities and risks. 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
June 23, 2017
4 | NUVEEN |
Comments
Nuveen Large Cap Select Fund
Nuveen Small Cap Select Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. For the majority of the reporting period, David Chalupnik, CFA, and Tony Burger, CFA, served as the portfolio managers for the Nuveen Large Cap Select Fund. David assumed portfolio management responsibilities in 2003 and Tony joined the management team for the Fund in 2004.
Effective April 13, 2017, Evan Staples, CFA, replaced Tony as a portfolio manager on the Nuveen Large Cap Select Fund.
Mark Traster, CFA, and Gregory Ryan, CFA, are the portfolio managers for the Nuveen Small Cap Select Fund. Mark assumed portfolio manager responsibilities in 2008 and Greg joined the portfolio management team for the Fund in 2013.
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 April 30, 2017.
Nuveen Large Cap Select Fund
How did the Fund perform during the six-month reporting period ended April 30, 2017?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2017. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV) only. The Fund’s Class A Shares at NAV outperformed both the S&P 500® Index and the Lipper Large-Cap Core Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund pursues long-term capital appreciation by investing primarily in the common stocks of companies that have market capitalizations of $5 billion or greater at the time of purchase. During the reporting period, we continued to employ our deep, rigorous research approach to find and invest in stocks that we believed had strong and/or improving fundamentals, attractive valuations and a catalyst to drive future performance. Our process focuses on constructing a portfolio that we believe offers the best opportunity to achieve superior, risk-adjusted returns over the long term. Throughout the reporting period, the Fund remained cyclically oriented with the most significant change in positioning coming from a more than 6% decrease in its information technology weighting. We also decreased the Fund’s industrial exposure to end with a slight underweight versus the benchmark during the reporting period. On the other hand, we increased the Fund’s energy exposure from an underweight to an overweight position versus the benchmark. We also shifted from a zero weight to slightly less than 2% in consumer staples, which still represented a significant underweight to the benchmark.
The Fund’s outperformance versus both its S&P 500® benchmark and Lipper peers was the result of strong security selection and beneficial sector weights. In terms of the former, stock selection was favorable in the financial, consumer discretionary, industrial and health care sectors. The Fund also benefited from an overweight position in financials, the best-performing sector in the S&P 500®
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)
Index, and an underweight position in consumer staples, one of the weakest performing sectors. Energy was the only detractor of note during the reporting period due to security selection and an overweight position in this poorly performing sector.
The financial sector had the greatest positive impact on performance and featured some of the Fund’s top overall contributors for the reporting period: Bank of America Corporation, Discover Financial Services, JPMorgan Chase & Co., SVB Financial Group and KeyCorp. Early in the reporting period, we added to various financials because the sector looked inexpensive and we expected the yield curve to steepen, given the improving economic data globally. Our most significant contributor in the sector was Bank of America, which saw improvements from lower expenses and growth in its consumer banking business. Investor confidence was further bolstered when the company announced that its annualized, pretax net interest income would go up by $2 billion with a 100 basis point rise in long-term yields and nearly $3.3 billion with a 100 basis point rise in short-term rates. Furthermore, Bank of America finally announced the sale of its U.K. credit card business to Lloyds Banking Group, which is expected to be completed in the first half of 2017. The sale is viewed as a strategic move given that the company has no other consumer business in the U.K. and because of the uncertain outlook following Brexit. The transaction will also free up capital for Bank of America. Direct banking and payment services company Discover Financial reported solid third-quarter results after delivering growth in both loans and net interest margin. The company also benefited, along with most other financial services firms, from the post-election improvement in economic sentiment and the impending Federal Reserve (Fed) rate hikes. Multi-national banking and financial services holding company JPMorgan continued its run as a best-in-class company, gaining market share in every business line. The company is seeing high single-digit core loan growth, net interest margin expansion and increasing capital return. In addition, we believe earnings per share growth will likely outpace its competitors regardless of the interest rate backdrop. From a valuation perspective, JPMorgan trades at a discount relative to its group. As the company’s widening competitive advantage becomes better understood, we believe multiple expansion could accelerate.
Finally, the banking area of financials displayed standout performance after the election signaled a change in agenda that favored the group, coupled with the rising rate bias indicated by the Fed. Investors anticipated that this domestic focused group would benefit from a steeper yield curve, potentially lower corporate tax rates and a more subdued regulatory environment. SVB Financial, parent company for the tech-focused lender Silicon Valley Bank, benefited from the improving sentiment around economic growth prospects, which should increase demand for loans and other financial services, and higher inflation, which should translate into higher rates and wider profit margins from loans. Meanwhile, bank-based holding company KeyCorp has reaped cost savings from its First Niagara Financial Group acquisition and demonstrated good loan growth, an uptick in net interest margin and stable expenses. The acquisition is improving metrics for KeyCorp, such as deposits per branch, which should ultimately increase operating efficiency and improve returns on tangible equity over the next few years.
Stock selection was also strong in the consumer discretionary sector, led by a position in Wynn Resorts Limited, the operator of luxury casino and resort properties in the U.S., Macau and Cotai. During the reporting period, the company reported solid earnings and low cannibalization from its newly opened Wynn Palace in its earnings report. Earnings from properties in the Chinese gaming enclave of Macau were especially strong, exceeding Wall Street estimates, while gaming volumes were higher than expected. We believe several catalysts remain for Wynn Resorts, including ongoing improvements in gaming and the continued trend of positive data from Las Vegas and Macau, which should provide for upward earnings revisions. On the heels of a long running anti-corruption campaign in China, we believe this company is best positioned to benefit from stabilization in the Macau and Cotai regions.
Results were also positive in the health care sector due to solid performance from Vertex Pharmaceuticals Inc. and Cigna Corporation. Biotechnology company Vertex Pharmaceuticals, which is predominantly focused on treatments for cystic fibrosis (CF), presented strong data from its late-stage trial for Tezacaftor. The company anticipates that this drug, which will be used in conjunction with its existing product for CF, will be a more effective and better tolerated option for these patients. If approved by the U.S. Food and Drug Administration, the new combination therapy would broadly expand the company’s addressable CF market. We believe the company continues to have a number of catalysts that could increase labels and provide paths to revenue growth, plus it operates in a space with low competition. Shares of global health insurance provider Cigna Corporation rebounded following a difficult summer after the company reported solid earnings for both the third and fourth quarters. As expected, the Cigna and Anthem merger was blocked by a federal appeals court. However, the company’s improved earnings and the opportunities for capital deployment made possible by a cash-heavy balance sheet helped support its stock. We believe Cigna remains well positioned to benefit from strong enrollment and earnings growth and will capitalize on its financial flexibility.
6 | NUVEEN |
Energy was the main detractor on the Fund’s performance during the reporting period, due to both security selection and an overweight position in the sector. The overall return for the sector was basically flat during a period where the S&P 500® Index advanced more than 13%. The sector has been under pressure since the beginning of 2017 because of the lack of progress in decreasing the global inventory glut, despite a production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC) in November 2016. U.S. crude inventories have risen faster than expected due to a revival among shale producers. While reducing the oversupply is taking some time, we are finally seeing a downward trend of oil imports into the United States. Consequently, fundamentals from both a macro and micro standpoint are slowly improving in the energy sector. The Fund’s positions in Nabors Industries Ltd., Anadarko Petroleum Corporation, Parsley Energy Inc. and Pioneer Natural Resources Company did detract over this reporting period. However, we remain invested in all four companies based on the improving fundamental backdrop and other recent signs of strength. We continue to like Nabors, an oil and gas drilling contractor with operations in more than 20 countries, because strong growth in high specification rigs has recently boded well for pricing. The company is running its super-spec fleet at near 100%, which should drive margins higher after the first quarter. Nabors should also benefit from organic growth because nine of the ten rigs it is building are already contracted in 2017. In terms of Anadarko Petroleum, the company divested its Marcellus assets, which were primarily natural gas focused, as part of its shift to a more oil-dominant product mix. We believe the company continues to have optionality given this shift and is well positioned for additional U.S. onshore activity. Exploration and production (E&P) firm Parsley Energy, which is focused in the prolific Permian Basin in Texas, has made recent acquisitions including additional acreage for its Midland portfolio and investments in the Delaware region to increase infrastructure needs. We believe the company will continue to report strong well results and increase efficiencies to lower its cost of production. Pioneer, the most active E&P company in the Permian Basin with the largest land base in the Midland area, remains one of our preferred E&P names because we still see upside potential for volumes and net asset value.
In the information technology sector, positions in Google’s parent company Alphabet Inc. and social media giant Facebook, Inc. weighed on performance. In the case of Alphabet, the company’s cost of acquiring traffic is increasing and it will likely experience a decline in gross margins in the short to intermediate term. Advertisers are utilizing programmatic advertising, which has a higher return on investment but is cheaper for the advertiser, resulting in less revenue for Google. For these and other reasons, we exited our position in Alphabet to capture gains in the stock and to fund better opportunities. In terms of Facebook, the Fund was hindered by its underweight position in the stock, which represents a fairly large weight in the index. Generally speaking, the company benefited from the rally among technology and internet-related stocks as investors moved away from value and cyclicals and sought out large, high quality growth stocks early in 2017. Facebook also continued to aggressively battle competition from Snap, which went public during the reporting period, by announcing new features on its Instagram app that mimic Snapchat. Additionally, Facebook continued to benefit from its enormous active user base, which allows it to sell targeted ads at higher rates, while remaining on the cutting edge of two new trends, mobile video and virtual reality.
Nuveen Small Cap Select Fund
How did the Fund perform during the six-month reporting period ended April 30, 2017?
The tables in the Fund Performance and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2017. Comparative performance information is provided for the Fund’s Class A Shares at net asset value (NAV) only. The Fund’s Class A Shares at NAV underperformed both the Russell 2000® Index and the Lipper Small-Cap Core Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by investing at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes primarily in the common stocks of small-capitalization companies with market capitalizations of $103 million to $4.7 billion at the time of purchase. During this reporting period, we continued to execute on our strategy of investing in well run small-cap companies that we believe offer good value in order to generate competitive returns for the Fund. We continued to tap into our firm’s strong fundamental research capabilities in order to find what we believe to be the best ideas within the small-cap universe. These companies exhibit strong cash flows and attractive valuations, plus have identifiable, near-term catalysts that could be realized over the next 12 to 24 months.
NUVEEN | 7 |
Portfolio Managers’ Comments (continued)
The Fund’s underperformance versus its benchmarks was primarily the result of stock selection issues in the information technology, energy and consumer staples sectors. Information technology was a challenging area for the Fund during the reporting period, particularly our position in Synchronoss Technologies, Inc., which provides cloud management solutions for mobile carriers and mobility/identity management for enterprise clients. Shares sold off following the divestiture of the company’s declining cell phone activation business, coupled with a transformative acquisition of IntraLinks to solidify its position in the emerging enterprise segment. The IntraLinks deal closed in January 2017 and Synchronoss subsequently negatively pre-announced results for first quarter 2017, a rare event for a company with a relatively predictable subscription revenue model and a long track record of not missing expectations. We have retained our position for the time being as we await more details on the company’s future direction from the returning management team, but are monitoring these changes closely.
Also in technology, the Fund experienced weakness from data management software and services provider CommVault Systems Inc., despite the company’s solid December 2016 quarter financial results that featured better-than-expected revenues and operating margins. Shares retreated after management highlighted challenging margins over the next several quarters driven by foreign exchange impacts, softer service revenues and investments in the business that weighed on fiscal 2018 financial guidance. We continue to own the name as a play on data management and archiving, where we believe earnings comparisons should become more favorable, and as the switch from maintenance to license revenues takes hold. The Fund also saw disappointing results from SPS Commerce Inc., a provider of business-to-business solutions to connect retailers with suppliers. The company served up a disappointing outlook for 2017, which included a sales force restructuring that led us to exit the position. In the internet software space, shares of Cornerstone Ondemand Inc., a leading provider of comprehensive learning and talent management solutions, drifted lower despite a strong fourth quarter 2016 financial report. The company delivered full-year revenue guidance for 2017 that was slightly below expectations based on softness among mid-market customers as well as European headwinds. However, our outlook remains favorable because this e-learning leader continues to outgrow the market, combined with prospects of margin improvement and the involvement of an activist investor.
Energy was the worst performing sector within the Russell 2000® Index, particularly year-to-date in 2017 because of the lack of progress in decreasing the global inventory glut, despite a production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC) in November 2016. U.S. crude inventories have risen faster than expected due to a revival among shale producers. While reducing the oversupply is taking some time, we are finally seeing a downward trend of oil imports into the United States. Consequently, fundamentals from both a macro and micro standpoint are slowly improving in the energy sector. That being said, our positions in Carrizo Oil & Gas, Inc., Superior Energy Services Inc. and Callon Petroleum Company did detract during the reporting period. However, we remain invested in all three companies based on the improving fundamental backdrop and other recent signs of strength. Exploration and production company Carrizo Oil & Gas announced favorable fourth-quarter results and 2017 guidance during the reporting period and is still reporting solid operating results with production volumes and earnings ahead of consensus. Superior Energy, a global energy services company with solid market positioning in the well completion and production markets, issued a first-quarter 2017 report that showed sequential improvement in its margin profile, driven primarily by increasing pressure pumping activity and pricing in its U.S. land completion services segment. The company has expensed the reactivation costs of once idle equipment over the past two quarters, leaving potential for additional margin improvement. Superior Energy’s management also remains disciplined in its allocation of capital. The most recent first-quarter 2017 report issued by Callon Petroleum, a pure-play Permian exploration and production firm, indicated that the company is back on track with its production growth profile, operating margins and solid individual well results that solidify the underlying value of acreage acquired in 2016.
The main drag in the consumer staples sector resulted from our position in private label foods manufacturer TreeHouse Foods Inc. The company announced weak third-quarter results, coupled with a pair of management departures and difficulties in the integration of the Private Brands acquisition from ConAgra. As a result of these setbacks, we decided to exit our position in TreeHouse Foods during the reporting period.
The Fund benefited from stock selection in the financial, industrials and consumer discretionary sectors during the reporting period. The financial sector was the Fund’s top performing area led by strong contributions from Bank of the Ozarks, Inc., CNO Financial Group, Inc. and Evercore Partners Inc. The banking group, in particular, displayed strong performance after the election signaled a change in agenda that favored the group, coupled with the rising interest rate bias indicated by the Federal Reserve. Investors anticipated that this domestic-focused group would benefit from a steeper yield curve, potentially lower corporate tax rates and a
8 | NUVEEN |
more subdued regulatory environment. Bank of the Ozarks, an Arkansas-based bank focused in the Southern U.S., continued to display strong top-line growth. Outside of the banking area, the Fund benefited from a position in CNO Financial, a diversified life insurance firm that offers supplemental health insurance, annuities and long-term care products. CNO Financial’s announcement of the resumption of its share buyback plan was a positive catalyst and suggested that the company has moved past last fall’s controversy with reinsurer Beechwood Re. Performance was also aided by a position in Evercore Partners, an investment banking advisory and management firm focused on the institutional market. The company experienced strong top-line growth given the productivity of its staff and the tailwinds of an improving merger and acquisition market. The pipeline of transactions, new advisor hires and an improved economic environment boded well for Evercore’s shares during the reporting period.
The industrial sector was also home to several standouts for the Fund, including executive search firm, Korn/Ferry International. After detracting during the previous reporting period, Korn/Ferry’s shares surged following its fiscal third-quarter results. Management signaled that not only had its business recovered following the post Brexit-related weakness, but that new business had accelerated in Europe and North America following the election. Shares of NN Inc., a diversified manufacturer of plastic and metal components, advanced following a solid fourth-quarter 2016 earnings report and favorable 2017 guidance. On the heels of difficult end markets in 2015 and 2016, NN’s management expressed a more optimistic tone to start 2017, particularly for its short-cycle industrial business. More recently, the company offered more positive news relating to debt refinancing, which could be additive to earnings.
The leading contributor in the consumer discretionary sector was a position in Penn National Gaming Inc., a regional company operating 29 gaming facilities across the U.S. We purchased shares in January 2017 after the company reported its fourth-quarter results and gave conservative guidance. We believed the shares were undervalued at that time due to unwarranted investor concerns surrounding a new competitive threat to its Charles Town, West Virginia casino and its recently purchased facility, Tropicana Las Vegas. In the middle of March 2017, Penn National’s shares surged after the company revised its outlook and raised guidance due to lower-than-expected competitive pressures from the rival casino in Charles Town and stronger results from its Tropicana casino. The discretionary area was also home to one laggard of note, Hibbett Sports, Inc., a retailer of athletic footwear, apparel and sports equipment in the South, Southwest, Mid-Atlantic and Midwest. The company preannounced disappointing results for the first fiscal quarter of 2018 with comparable store sales declining nearly 5% versus expectations of flat comps, resulting in sales and earnings-per-share misses for the quarter. Although the retail environment remains difficult, we believe Hibbett Sports should benefit from its current efforts to build out its Omni Channel business, which should result in better-than-industry traffic trends, comps and improving margins.
In health care, the Fund experienced favorable results from Cambrex Corporation, a manufacturer of small molecule active pharmaceutical ingredients (API) for other drug companies. The company has recently reported favorable results due to new product additions over the past year that are driving strong revenue growth. The product growth has also allowed Cambrex to more fully leverage some of its existing FDA-approved manufacturing facilities, resulting in improving margins as well. We believe this company continues to have a strong outlook for 2017 and beyond with a number of new drug additions in its pipeline. Offsetting some of the strength, performance was hindered by a position in Diplomat Pharmacy Inc., a specialty pharmacy providing services for patients with complicated and rare diseases. The company surprisingly announced a restatement on its quarterly call resulting from remuneration fees owed to larger pharmacy benefit managers that would pose a substantial financial headwind absent a lengthy and costly lawsuit. As a result, we exited this position.
Lastly, a pair of the Fund’s technology holdings had a positive impact on performance, despite the negative overall performance in that sector. Shares of NeuStar Inc., a specialty data analytics and security services provider, jumped sharply after the company agreed to be acquired by a private equity group at a strong premium. Also, investors bid up shares of MKS Instruments Inc. after the company posted a series of strong earnings reports due to healthy market demand and execution in its respective markets. MKS Instruments has benefited from recent technology transitions in semiconductor manufacturing toward 3D production approaches, which add capital intensity and drive demand for the company’s vacuum, power and analysis tools. Forward growth and profit prospects have also improved following the company’s transformative acquisition of Newport Corporation in April 2016, which has expanded and diversified MKS Instruments’ served addressable market and offered cost improvement benefits.
NUVEEN | 9 |
Nuveen Large Cap Select Fund
Mutual fund investing involves risk; principal loss is possible. Equity investments, such as those held by the Fund, are subject to market risk, derivatives risk, and common stock risk. Foreign investments involve additional risks including currency fluctuations, political and economic instability, and lack of liquidity. These risks are magnified in emerging markets.
Nuveen Small Cap Select Fund
Mutual fund investing involves risk; principal loss is possible. Equity investments, such as those held by the Fund, are subject to market risk, derivatives risk, IPO risk, and common stock risk. Small-cap stocks are subject to greater volatility and liquidity risks. Foreign investments involve additional risks including currency fluctuations, political and economic instability, and lack of liquidity. These risks are magnified in emerging markets.
10 | 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. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns for a period of less than one year are not annualized. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit Nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
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 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 | 11 |
Fund Performance and Expense Ratios (continued)
Nuveen Large Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 April 30, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 17.65% | 24.51% | 13.41% | 6.42% | ||||||||||||
Class A Shares at maximum Offering Price | 10.86% | 17.37% | 12.08% | 5.79% | ||||||||||||
S&P 500® Index | 13.32% | 17.92% | 13.68% | 7.15% | ||||||||||||
Lipper Large-Cap Core Funds Classification Average | 12.60% | 16.29% | 12.15% | 6.32% | ||||||||||||
Class C Shares | 17.20% | 23.56% | 12.57% | 5.60% | ||||||||||||
Class I Shares | 17.76% | 24.82% | 13.70% | 6.69% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 14.23% | 23.72% | 12.99% | 6.76% | ||||||||||||
Class A Shares at maximum Offering Price | 7.66% | 16.60% | 11.66% | 6.13% | ||||||||||||
Class C Shares | 13.76% | 22.82% | 12.14% | 5.93% | ||||||||||||
Class I Shares | 14.37% | 24.10% | 13.27% | 7.03% |
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% 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 I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||
Class A | Class C | Class I | ||||||||||
Gross Expense Ratios | 1.19% | 1.94% | 0.94% | |||||||||
Net Expense Ratios | 1.14% | 1.89% | 0.89% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through February 28, 2018, 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 0.89% 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.
12 | NUVEEN |
Nuveen Small Cap Select Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this 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 April 30, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 15.63% | 23.12% | 11.46% | 6.49% | ||||||||||||
Class A Shares at maximum Offering Price | 9.00% | 16.01% | 10.15% | 5.86% | ||||||||||||
Russell 2000® Index | 18.37% | 25.63% | 12.95% | 7.05% | ||||||||||||
Lipper Small-Cap Core Funds Classification Average | 16.54% | 21.50% | 11.79% | 6.58% | ||||||||||||
Class C Shares | 15.25% | 22.37% | 10.65% | 5.71% | ||||||||||||
Class R3 Shares | 15.51% | 22.71% | 11.17% | 6.23% | ||||||||||||
Class I Shares | 15.83% | 23.41% | 11.75% | 6.77% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 10.47% | 25.98% | 10.85% | 6.77% | ||||||||||||
Class A Shares at maximum Offering Price | 4.12% | 18.70% | 9.54% | 6.13% | ||||||||||||
Class C Shares | 10.01% | 25.12% | 10.03% | 5.97% | ||||||||||||
Class R3 Shares | 10.22% | 25.63% | 10.56% | 6.50% | ||||||||||||
Class I Shares | 10.61% | 26.35% | 11.12% | 7.03% |
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% 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 I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Gross Expense Ratios | 1.41% | 2.16% | 1.66% | 1.16% | ||||||||||||
Net Expense Ratios | 1.24% | 1.99% | 1.49% | 0.99% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2019, 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 0.99% 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.
NUVEEN | 13 |
Summaries as of April 30, 2017
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.
Nuveen Large Cap Select Fund
Fund Allocation
(% of net assets)
Common Stocks | 99.4% | |||
Investments Purchased with Collateral from Securities Lending | 1.5% | |||
Money Market Funds | 0.5% | |||
Other Assets Less Liabilities | (1.4)% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Banks | 11.1% | |||
Software | 9.9% | |||
Oil, Gas, & Consumable Fuels | 7.6% | |||
Technology Hardware, Storage & Peripherals | 6.9% | |||
Biotechnology | 6.7% | |||
IT Services | 5.6% | |||
Capital Markets | 5.5% | |||
Machinery | 4.9% | |||
Health Care Providers & Services | 4.8% | |||
Chemicals | 3.6% | |||
Hotels, Restaurants & Leisure | 3.6% | |||
Internet and Direct Marketing Retail | 3.3% | |||
Energy Equipment & Services | 2.4% | |||
Specialty Retail | 2.4% | |||
Containers & Packaging | 2.2% | |||
Other | 18.9% | |||
Investments Purchased with Collateral from Securities Lending | 1.5% | |||
Money Market Funds | 0.5% | |||
Other Assets Less Liabilities | (1.4)% | |||
Net Assets | 100% |
Top Five Common Stock Holdings (% of net assets)
Apple, Inc. | 5.4% | |||
Microsoft Corporation | 4.5% | |||
Bank of America Corporation | 4.4% | |||
JP Morgan Chase & Co. | 3.9% | |||
MasterCard, Inc. | 2.3% |
14 | NUVEEN |
Nuveen Small Cap Select Fund
Fund Allocation
(% of net assets)
Common Stocks | 98.1% | |||
Investments Purchased with Collateral from Securities Lending | 4.0% | |||
Money Market Funds | 1.2% | |||
Other Assets Less Liabilities | (3.3)% | |||
Net Assets | 100% |
Portfolio Composition
(% of net assets)
Banks | 13.0% | |||
Equity Real Estate Investment Trusts | 6.5% | |||
Health Care Providers & Services | 5.6% | |||
Hotels, Restaurants & Leisure | 4.4% | |||
Semiconductors & Semiconductor Equipment | 4.3% | |||
Software | 4.3% | |||
Communications Equipment | 3.9% | |||
Internet Software & Services | 3.5% | |||
Insurance | 3.4% | |||
Biotechnology | 3.2% | |||
Commercial Services & Supplies | 3.0% | |||
Machinery | 2.9% | |||
Chemicals | 2.5% | |||
Electrical Equipment | 2.5% | |||
Oil, Gas & Consumable Fuels | 2.2% | |||
Electric Utilities | 2.2% | |||
Health Care Equipment & Supplies | 2.1% | |||
Life Sciences Tools & Services | 1.7% | |||
Textiles, Apparel & Luxury Goods | 1.6% | |||
Thrifts & Mortgage Finance | 1.6% | |||
Capital Markets | 1.6% | |||
Construction & Engineering | 1.4% | |||
Mortgage Real Estate Investment Trusts | 1.3% | |||
Other | 19.4% | |||
Investments Purchased with Collateral from Securities Lending | 4.0% | |||
Money Market Funds | 1.2% | |||
Other Assets Less Liabilities | (3.3)% | |||
Net Assets | 100% |
Top Five Common Stock Holdings
(% of net assets)
Renasant Corporation | 1.8% | |||
Plantronics Inc. | 1.7% | |||
Interface, Inc. | 1.6% | |||
Steven Madden Limited | 1.6% | |||
Radian Group Inc. | 1.6% |
NUVEEN | 15 |
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 April 30, 2017.
The beginning of the period is November 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 ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Select 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 | $ | 1,176.50 | $ | 1,172.00 | $ | 1,177.60 | ||||||
Expenses Incurred During the Period | $ | 6.15 | $ | 10.18 | $ | 4.81 | ||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
Ending Account Value | $ | 1,019.14 | $ | 1,015.42 | $ | 1,020.38 | ||||||
Expenses Incurred During the Period | $ | 5.71 | $ | 9.44 | $ | 4.46 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.14%, 1.89% and 0.89% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
16 | NUVEEN |
Nuveen Small Cap Select 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 | $ | 1,156.30 | $ | 1,152.50 | $ | 1,155.10 | $ | 1,158.30 | ||||||||
Expenses Incurred During the Period | $ | 7.49 | $ | 11.47 | $ | 8.82 | $ | 6.15 | ||||||||
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 | $ | 1,017.85 | $ | 1,014.13 | $ | 1,016.61 | $ | 1,019.09 | ||||||||
Expenses Incurred During the Period | $ | 7.00 | $ | 10.74 | $ | 8.25 | $ | 5.76 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.40%, 2.15%, 1.65% and 1.15% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
NUVEEN | 17 |
Nuveen Large Cap Select Fund
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 99.4% | ||||||||
COMMON STOCKS – 99.4% | ||||||||
Aerospace & Defense – 1.6% | ||||||||
3,438 | Lockheed Martin Corporation | $ | 926,369 | |||||
Banks – 11.1% | ||||||||
108,800 | Bank of America Corporation | 2,539,392 | ||||||
15,131 | CIT Group Inc. | 700,717 | ||||||
25,857 | JP Morgan Chase & Co. | 2,249,559 | ||||||
49,257 | KeyCorp. | 898,448 | ||||||
Total Banks | 6,388,116 | |||||||
Biotechnology – 6.7% | ||||||||
15,138 | AbbVie Inc. | 998,200 | ||||||
5,305 | Alexion Pharmaceuticals Inc., (2) | 677,873 | ||||||
2,502 | Biogen Inc., (2) | 678,567 | ||||||
6,221 | Celgene Corporation, (2) | 771,715 | ||||||
5,971 | Vertex Pharmaceuticals Inc., (2) | 706,369 | ||||||
Total Biotechnology | 3,832,724 | |||||||
Capital Markets – 5.5% | ||||||||
31,218 | Charles Schwab Corporation | 1,212,819 | ||||||
38,079 | E*Trade Group Inc., (2) | 1,315,629 | ||||||
7,795 | State Street Corporation | 654,001 | ||||||
Total Capital Markets | 3,182,449 | |||||||
Chemicals – 3.6% | ||||||||
5,668 | Celanese Corporation, Series A | 493,343 | ||||||
11,275 | Eastman Chemical Company | 899,181 | ||||||
2,103 | Sherwin-Williams Company | 703,832 | ||||||
Total Chemicals | 2,096,356 | |||||||
Containers & Packaging – 2.2% | ||||||||
12,901 | International Paper Company | 696,267 | ||||||
10,432 | WestRock Company | 558,738 | ||||||
Total Containers & Packaging | 1,255,005 | |||||||
Electric Utilities – 1.9% | ||||||||
8,375 | NextEra Energy Inc. | 1,118,565 | ||||||
Electrical Equipment – 1.3% | ||||||||
9,788 | Eaton PLC | 740,364 | ||||||
Energy Equipment & Services – 2.4% | ||||||||
65,597 | Nabors Industries Inc. | 678,273 |
18 | NUVEEN |
Shares | Description (1) | Value | ||||||
Energy Equipment & Services (continued) | ||||||||
9,636 | Schlumberger Limited | $ | 699,477 | |||||
Total Energy Equipment & Services | 1,377,750 | |||||||
Equity Real Estate Investment Trusts – 1.9% | ||||||||
8,800 | American Tower Corporation, REIT | 1,108,272 | ||||||
Food Products – 1.9% | ||||||||
11,909 | Kraft Heinz Company | 1,076,455 | ||||||
Health Care Equipment & Supplies – 1.1% | ||||||||
24,970 | Boston Scientific Corporation, (2) | 658,709 | ||||||
Health Care Providers & Services – 4.8% | ||||||||
6,334 | Aetna Inc. | 855,533 | ||||||
7,595 | CIGNA Corporation | 1,187,630 | ||||||
3,331 | Humana Inc. | 739,415 | ||||||
Total Health Care Providers & Services | 2,782,578 | |||||||
Hotels, Restaurants & Leisure – 3.6% | ||||||||
9,664 | Hilton Worldwide Holdings Inc. | 569,886 | ||||||
21,470 | MGM Resorts International Inc. | 659,344 | ||||||
6,951 | Wynn Resorts Ltd | 855,043 | ||||||
Total Hotels, Restaurants & Leisure | 2,084,273 | |||||||
Household Durables – 0.9% | ||||||||
15,984 | D.R. Horton, Inc. | 525,714 | ||||||
Internet and Direct Marketing Retail – 3.3% | ||||||||
1,111 | Amazon.com, Inc., (2) | 1,027,664 | ||||||
459 | Priceline Group Incorporated, (2), (3) | 847,690 | ||||||
Total Internet and Direct Marketing Retail | 1,875,354 | |||||||
IT Services – 5.6% | ||||||||
8,915 | DXC Technology Company | 671,656 | ||||||
40,923 | First Data Corporation, Class A Shares, (2) | 639,217 | ||||||
4,129 | FleetCor Technologies Inc., (2) | 582,767 | ||||||
11,559 | MasterCard, Inc. | 1,344,543 | ||||||
Total IT Services | 3,238,183 | |||||||
Machinery – 4.9% | ||||||||
9,051 | Caterpillar Inc. | 925,555 | ||||||
4,208 | Cummins Inc. | 635,156 | ||||||
6,874 | Dover Corporation | 542,221 | ||||||
7,767 | Ingersoll Rand Company Limited, Class A | 689,321 | ||||||
Total Machinery | 2,792,253 | |||||||
Media – 2.0% | ||||||||
28,879 | Comcast Corporation, Class A | 1,131,768 |
NUVEEN | 19 |
Nuveen Large Cap Select Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
Oil, Gas & Consumable Fuels – 7.6% | ||||||||
16,586 | Anadarko Petroleum Corporation | $ | 945,734 | |||||
27,936 | HollyFrontier Company | 786,119 | ||||||
13,195 | Occidental Petroleum Corporation | 812,020 | ||||||
15,936 | Parsley Energy Inc. Class A Shares, (2) | 474,733 | ||||||
3,761 | Pioneer Natural Resources Company | 650,615 | ||||||
23,557 | Williams Companies Inc. | 721,551 | ||||||
Total Oil, Gas & Consumable Fuels | 4,390,772 | |||||||
Pharmaceuticals – 1.7% | ||||||||
29,265 | Pfizer Inc. | 992,669 | ||||||
Road & Rail – 1.0% | ||||||||
4,948 | Norfolk Southern Corporation | 581,341 | ||||||
Semiconductors & Semiconductor Equipment – 1.3% | ||||||||
3,284 | Broadcom Limited | 725,140 | ||||||
Software – 9.9% | ||||||||
11,535 | Activision Blizzard Inc. | 602,704 | ||||||
5,432 | Adobe Systems Incorporated, (2) | 726,476 | ||||||
6,419 | Citrix Systems, (2) | 519,554 | ||||||
5,855 | Electronic Arts Inc., (2) | 555,171 | ||||||
5,472 | Intuit, Inc. | 685,149 | ||||||
38,110 | Microsoft Corporation | 2,609,011 | ||||||
Total Software | 5,698,065 | |||||||
Specialty Retail – 2.4% | ||||||||
12,026 | Best Buy Co., Inc. | 623,067 | ||||||
8,664 | Lowe’s Companies, Inc. | 735,400 | ||||||
Total Specialty Retail | 1,358,467 | |||||||
Technology Hardware, Storage & Peripherals – 6.9% | ||||||||
21,480 | Apple, Inc. | 3,085,602 | ||||||
46,862 | HP Inc. | 881,943 | ||||||
Total Technology Hardware, Storage & Peripherals | 3,967,545 | |||||||
Trading Companies & Distributors – 0.7% | ||||||||
10,031 | HD Supply Holdings Inc., (2) | 404,249 | ||||||
Wireless Telecommunication Services – 1.6% | ||||||||
13,703 | T-Mobile US Inc., (2) | 921,800 | ||||||
Total Long-Term Investments (cost $49,052,441) | 57,231,305 | |||||||
Shares | Description (1) | Value | ||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.5% | ||||||||
Money Market Funds – 1.5% | ||||||||
850,229 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ | 850,229 | |||||
Total Investments Purchased with Collateral from Securities Lending (cost $850,229) | 850,229 |
20 | NUVEEN |
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||
Money Market Funds – 0.5% | ||||||||
280,406 | First American Treasury Obligations Fund, Class Z, 0.626%, (4) | $ | 280,406 | |||||
Total Short-Term Investments (cost $280,406) | 280,406 | |||||||
Total Investments (cost $50,183,076) – 101.4% | 58,361,940 | |||||||
Other Assets Less Liabilities – (1.4)% | (811,040 | ) | ||||||
Net Assets – 100% | $ | 57,550,900 |
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 $838,456. |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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 |
See accompanying notes to financial statements.
NUVEEN | 21 |
Nuveen Small Cap Select Fund
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
LONG-TERM INVESTMENTS – 98.1% | ||||||||
COMMON STOCKS – 98.1% | ||||||||
Auto Components – 1.0% | ||||||||
33,553 | Cooper Tire & Rubber | $ | 1,285,080 | |||||
Banks – 13.0% | ||||||||
19,477 | Bank of the Ozarks, Inc. | 924,573 | ||||||
36,990 | Banner Corporation | 2,041,848 | ||||||
43,088 | Customers Bancorp Inc., (2) | 1,332,712 | ||||||
48,306 | Glacier Bancorp, Inc. | 1,631,777 | ||||||
37,375 | Preferred Bank Los Angeles | 1,980,501 | ||||||
54,699 | Renasant Corporation | 2,319,236 | ||||||
87,112 | Sterling Bancorp. | 2,025,354 | ||||||
38,968 | Webster Financial Corporation | 1,979,964 | ||||||
30,860 | Western Alliance Bancorporation, (2) | 1,478,194 | ||||||
19,047 | Wintrust Financial Corporation | 1,349,670 | ||||||
Total Banks | 17,063,829 | |||||||
Biotechnology – 3.2% | ||||||||
28,999 | Alder Biopharmaceuticals Inc., (2) | 581,430 | ||||||
3,104 | Bluebird Bio Inc., (2), (3) | 276,101 | ||||||
9,585 | Blueprint Medicines Corporation, (2) | 446,469 | ||||||
50,870 | Emergent BioSolutions, Inc., (2) | 1,521,522 | ||||||
9,133 | Prothena Corporation PLC, (2), (3) | 494,369 | ||||||
11,454 | Sarepta Therapautics Inc., (2), (3) | 415,322 | ||||||
1,999 | Tesaro Inc., (2) | 295,032 | ||||||
3,884 | Ultragenyx Pharmaceutical Inc., (2), (3) | 250,091 | ||||||
Total Biotechnology | 4,280,336 | |||||||
Building Products – 1.0% | ||||||||
39,567 | Jeld-Wen Holding, Inc., (2) | 1,306,898 | ||||||
Capital Markets – 1.6% | ||||||||
28,020 | Evercore Partners Inc. | 2,066,475 | ||||||
Chemicals – 2.5% | ||||||||
94,455 | Ferro Corporation | 1,692,634 | ||||||
49,630 | Kraton Performance Polymers Inc., (2) | 1,623,397 | ||||||
Total Chemicals | 3,316,031 | |||||||
Commercial Services & Supplies – 3.0% | ||||||||
39,431 | HNI Corporation | 1,843,794 | ||||||
108,886 | Interface, Inc. | 2,166,831 | ||||||
Total Commercial Services & Supplies | 4,010,625 |
22 | NUVEEN |
Shares | Description (1) | Value | ||||||
Communications Equipment – 3.9% | ||||||||
62,100 | Finisar Corporation, (2) | $ | 1,418,364 | |||||
32,903 | Netgear, Inc., (2) | 1,551,376 | ||||||
41,067 | Plantronics Inc. | 2,242,258 | ||||||
Total Communications Equipment | 5,211,998 | |||||||
Construction & Engineering – 1.4% | ||||||||
40,746 | MasTec Inc., (2) | 1,798,936 | ||||||
Containers & Packaging – 0.8% | ||||||||
20,767 | Berry Plastics Corporation, (2) | 1,038,350 | ||||||
Diversified Consumer Services – 1.3% | ||||||||
23,060 | Grand Canyon Education Inc., (2) | 1,733,190 | ||||||
Electric Utilities – 2.2% | ||||||||
24,807 | ALLETE Inc. | 1,734,257 | ||||||
30,385 | PNM Resources Inc. | 1,131,841 | ||||||
Total Electric Utilities | 2,866,098 | |||||||
Electrical Equipment – 2.5% | ||||||||
53,671 | Generac Holdings Inc., (2) | 1,887,609 | ||||||
17,659 | Regal-Beloit Corporation | 1,392,412 | ||||||
Total Electrical Equipment | 3,280,021 | |||||||
Electronic Equipment, Instruments & Components – 1.2% | ||||||||
100,530 | Vishay Intertechnology Inc. | 1,643,666 | ||||||
Energy Equipment & Services – 1.3% | ||||||||
140,571 | Superior Energy Services, Inc. | 1,698,098 | ||||||
Equity Real Estate Investment Trusts – 6.5% | ||||||||
81,719 | Brandywine Realty Trust | 1,386,771 | ||||||
13,736 | Entertainment Properties Trust | 998,745 | ||||||
47,139 | Kite Realty Group Trust | 959,750 | ||||||
127,253 | Monogram Residential Trust, Inc. | 1,295,436 | ||||||
69,000 | STAG Industrial Inc. | 1,818,840 | ||||||
124,074 | Summit Hotel Properties Inc. | 2,050,943 | ||||||
Total Equity Real Estate Investment Trusts | 8,510,485 | |||||||
Food Products – 1.1% | ||||||||
43,076 | Snyders Lance Inc. | 1,518,860 | ||||||
Gas Utilities – 1.2% | ||||||||
18,495 | Southwest Gas Holdings, Inc. | 1,549,141 | ||||||
Health Care Equipment & Supplies – 2.1% | ||||||||
49,125 | K2M Group Holdings Inc., (2) | 1,088,119 | ||||||
53,939 | Nxstage Medical, Inc., (2) | 1,612,237 | ||||||
Total Health Care Equipment & Supplies | 2,700,356 |
NUVEEN | 23 |
Nuveen Small Cap Select Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
Health Care Providers & Services – 5.6% | ||||||||
21,206 | Almost Family, Inc., (2) | $ | 1,052,878 | |||||
49,514 | AMN Healthcare Services Inc., (2) | 2,022,647 | ||||||
23,866 | HealthSouth Corporation | 1,119,315 | ||||||
37,547 | Pharmerica Corporation, (2) | 886,109 | ||||||
94,910 | Surgery Partners Inc., (2) | 1,632,452 | ||||||
25,980 | Teladoc, Inc., (2), (3) | 644,304 | ||||||
Total Health Care Providers & Services | 7,357,705 | |||||||
Hotels, Restaurants & Leisure – 4.4% | ||||||||
35,100 | Marcus Corporation | 1,186,380 | ||||||
18,500 | Papa John’s International, Inc. | 1,462,610 | ||||||
81,500 | Penn National Gaming, Inc., (2) | 1,506,120 | ||||||
34,600 | Texas Roadhouse, Inc. | 1,622,048 | ||||||
Total Hotels, Restaurants & Leisure | 5,777,158 | |||||||
Household Durables – 1.1% | ||||||||
26,504 | Installed Building Products Inc., (2) | 1,413,988 | ||||||
Insurance – 3.5% | ||||||||
53,712 | American Equity Investment Life Holding Company | 1,274,049 | ||||||
25,988 | Amerisafe, Inc. | 1,495,609 | ||||||
84,470 | CNO Financial Group Inc. | 1,779,783 | ||||||
Total Insurance | 4,549,441 | |||||||
Internet Software & Services – 3.5% | ||||||||
24,994 | Cornerstone OnDemand Inc., (2) | 981,764 | ||||||
45,738 | Mimecast Limited, (2) | 1,105,487 | ||||||
38,500 | MINDBODY, Inc., Class A Shares, (2), (3) | 1,091,475 | ||||||
42,853 | Twilio, Inc., (2), (3) | 1,416,292 | ||||||
Total Internet Software & Services | 4,595,018 | |||||||
IT Services – 1.1% | ||||||||
19,300 | EPAM Systems Inc., (2) | 1,486,100 | ||||||
Leisure Products – 1.2% | ||||||||
27,997 | Brunswick Corporation | 1,588,830 | ||||||
Life Sciences Tools & Services – 1.7% | ||||||||
28,482 | Accelerate Diagnostics Inc., (2), (3) | 777,559 | ||||||
25,517 | Cambrex Corporation, (2) | 1,514,434 | ||||||
Total Life Sciences Tools & Services | 2,291,993 | |||||||
Machinery – 2.9% | ||||||||
77,372 | NN, Incorporated | 2,135,467 | ||||||
82,332 | Welbilt Incorporation, (2) | 1,687,806 | ||||||
Total Machinery | 3,823,273 |
24 | NUVEEN |
Shares | Description (1) | Value | ||||||
Media – 1.2% | ||||||||
25,972 | Meredith Corporation | $ | 1,520,661 | |||||
Mortgage Real Estate Investment Trusts – 1.3% | ||||||||
212,544 | MFA Mortgage Investments, Inc. | 1,766,241 | ||||||
Oil, Gas & Consumable Fuels – 2.2% | ||||||||
138,486 | Callon Petroleum Company Del, (2) | 1,639,674 | ||||||
48,986 | Carrizo Oil & Gas, Inc., (2) | 1,231,998 | ||||||
Total Oil, Gas & Consumable Fuels | 2,871,672 | |||||||
Paper & Forest Products – 1.1% | ||||||||
70,811 | KapStone Paper and Packaging Corp. | 1,493,404 | ||||||
Pharmaceuticals – 0.5% | ||||||||
43,187 | Horizon Pharma Inc., (2) | 664,216 | ||||||
Professional Services – 1.3% | ||||||||
52,853 | Korn Ferry International | 1,712,437 | ||||||
Road & Rail – 1.2% | ||||||||
63,727 | Swift Transportation Company, (2) | 1,566,410 | ||||||
Semiconductors & Semiconductor Equipment – 4.3% | ||||||||
38,500 | Microsemi Corporation, (2) | 1,807,190 | ||||||
26,218 | MKS Instruments Inc. | 2,051,559 | ||||||
52,000 | Semtech Corporation, (2) | 1,775,800 | ||||||
Total Semiconductors & Semiconductor Equipment | 5,634,549 | |||||||
Software – 4.3% | ||||||||
41,731 | CommVault Systems, Inc., (2) | 2,105,329 | ||||||
15,248 | Proofpoint, Incorporated, (2) | 1,149,242 | ||||||
77,791 | Synchronoss Technologies, Inc., (2) | 1,244,656 | ||||||
18,000 | Take-Two Interactive Software, Inc., (2) | 1,131,300 | ||||||
Total Software | 5,630,527 | |||||||
Specialty Retail – 0.7% | ||||||||
33,146 | Hibbett Sporting Goods, Inc., (2), (3) | 861,796 | ||||||
Textiles, Apparel & Luxury Goods – 1.6% | ||||||||
56,738 | Steven Madden Limited, (2) | 2,158,881 | ||||||
Thrifts & Mortgage Finance – 1.6% | ||||||||
127,652 | Radian Group Inc. | 2,154,766 | ||||||
Trading Companies & Distributors – 1.0% | ||||||||
57,736 | BMC Stock Holdings Inc., (2) | 1,345,249 | ||||||
Total Long-Term Investments (cost $105,230,616) | 129,142,788 |
NUVEEN | 25 |
Nuveen Small Cap Select Fund (continued)
Portfolio of Investments | April 30, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 4.0% | ||||||||
Money Market Funds – 4.0% | ||||||||
5,217,916 | First American Government Obligations Fund, Class X, 0.677%, (4), (5) | $ | 5,217,916 | |||||
Total Investments Purchased with Collateral from Securities Lending (cost $5,217,916) | 5,217,916 | |||||||
Shares | Description (1) | Value | ||||||
SHORT-TERM INVESTMENTS – 1.2% | ||||||||
Money Market Funds – 1.2% | ||||||||
1,540,236 | First American Treasury Obligations Fund, Class Z, 0.626%, (4) | $ | 1,540,236 | |||||
Total Short-Term Investments (cost $1,540,236) | 1,540,236 | |||||||
Total Investments (cost $111,988,768) – 103.3% | 135,900,940 | |||||||
Other Assets Less Liabilities – (3.3)% | (4,360,221 | ) | ||||||
Net Assets – 100% | $ | 131,540,719 |
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 $5,119,210. |
(4) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 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. |
See accompanying notes to financial statements.
26 | NUVEEN |
Assets and Liabilities | April 30, 2017 (Unaudited) |
Large Cap Select | Small Cap Select | |||||||
Assets | ||||||||
Long-term investments, at value (cost $49,052,441 and $105,230,616, respectively) | $ | 57,231,305 | $ | 129,142,788 | ||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 850,229 | 5,217,916 | ||||||
Short-term investments, at value (cost approximates value) | 280,406 | 1,540,236 | ||||||
Receivable for: | ||||||||
Dividends | 41,407 | 20,089 | ||||||
Due from broker | 526 | 3,876 | ||||||
Interest | 418 | 791 | ||||||
Investments sold | 795,962 | 2,372,877 | ||||||
Shares sold | 94,543 | 175,077 | ||||||
Other assets | 20,718 | 38,987 | ||||||
Total assets | 59,315,514 | 138,512,637 | ||||||
Liabilities | ||||||||
Payable for: | ||||||||
Collateral from securities lending program | 850,229 | 5,217,916 | ||||||
Investments purchased | 800,246 | 1,141,684 | ||||||
Shares redeemed | 65,771 | 374,416 | ||||||
Accrued expenses: | ||||||||
Directors fees | 451 | 14,996 | ||||||
Management fees | 27,953 | 96,208 | ||||||
12b-1 distribution and service fees | 3,666 | 21,625 | ||||||
Other | 16,298 | 105,073 | ||||||
Total liabilities | 1,764,614 | 6,971,918 | ||||||
Net assets | $ | 57,550,900 | $ | 131,540,719 | ||||
Class A Shares | ||||||||
Net assets | $ | 11,974,268 | $ | 69,992,481 | ||||
Shares outstanding | 481,122 | 7,273,059 | ||||||
Net asset value (“NAV”) per share | $ | 24.89 | $ | 9.62 | ||||
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | $ | 26.41 | $ | 10.21 | ||||
Class C Shares | ||||||||
Net assets | $ | 1,604,372 | $ | 5,823,025 | ||||
Shares outstanding | 69,066 | 869,547 | ||||||
NAV and offering price per share | $ | 23.23 | $ | 6.70 | ||||
Class R3 Shares | ||||||||
Net assets | $ | — | $ | 5,770,132 | ||||
Shares outstanding | — | 653,081 | ||||||
NAV and offering price per share | $ | — | $ | 8.84 | ||||
Class I Shares | ||||||||
Net assets | $ | 43,972,260 | $ | 49,955,081 | ||||
Shares outstanding | 1,753,899 | 4,177,141 | ||||||
NAV and offering price per share | $ | 25.07 | $ | 11.96 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 98,864,146 | $ | 99,720,899 | ||||
Undistributed (Over-distribution of) net investment income | 79,917 | (75,489 | ) | |||||
Accumulated net realized gain (loss) | (49,572,027 | ) | 7,983,137 | |||||
Net unrealized appreciation (depreciation) | 8,178,864 | 23,912,172 | ||||||
Net assets | $ | 57,550,900 | $ | 131,540,719 | ||||
Authorized shares – per class | 2 billion | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 |
See accompanying notes to financial statements.
NUVEEN | 27 |
Operations | Six Months Ended April 30, 2017 (Unaudited) |
Large Cap Select | Small Cap Select | |||||||
Investment Income | ||||||||
Dividend and interest income | $ | 380,063 | $ | 799,398 | ||||
Securities lending income, net | 2,727 | 42,829 | ||||||
Total investment income | 382,790 | 842,227 | ||||||
Expenses | ||||||||
Management fees | 186,792 | 565,000 | ||||||
12b-1 service fees – Class A Shares | 12,359 | 89,430 | ||||||
12b-1 distribution and service fees – Class C Shares | 6,627 | 29,615 | ||||||
12b-1 distribution and service fees – Class R3 Shares | — | 14,436 | ||||||
Shareholder servicing agent fees | 7,906 | 116,089 | ||||||
Custodian fees | 5,142 | 9,818 | ||||||
Directors fees | 839 | 2,078 | ||||||
Professional fees | 15,036 | 17,470 | ||||||
Shareholder reporting expenses | 5,296 | 23,324 | ||||||
Federal and state registration fees | 29,383 | 36,124 | ||||||
Other | 2,738 | 1,601 | ||||||
Total expenses before fee waiver/expense reimbursement | 272,118 | 904,985 | ||||||
Fee waiver/expense reimbursement | (15,258 | ) | (6,190 | ) | ||||
Net expenses | 256,860 | 898,795 | ||||||
Net investment income (loss) | 125,930 | (56,568 | ) | |||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from investments | 3,006,929 | 9,762,027 | ||||||
Change in net unrealized appreciation (depreciation) of investments | 5,235,598 | 9,522,714 | ||||||
Net realized and unrealized gain (loss) | 8,242,527 | 19,284,741 | ||||||
Net increase (decrease) in net assets from operations | $ | 8,368,457 | $ | 19,228,173 |
See accompanying notes to financial statements.
28 | NUVEEN |
Changes in Net Assets | (Unaudited) |
Large Cap Select | Small Cap Select | |||||||||||||||||||
Six Months Ended 4/30/17 | Year Ended | Six Months Ended 4/30/17 | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 125,930 | $ | 264,811 | $ | (56,568 | ) | $ | 220,519 | |||||||||||
Net realized gain (loss) from investments | 3,006,929 | 1,215,496 | 9,762,027 | 14,043,619 | ||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 5,235,598 | (306,572 | ) | 9,522,714 | (9,694,484 | ) | ||||||||||||||
Net increase (decrease) in net assets from operations | 8,368,457 | 1,173,735 | 19,228,173 | 4,569,654 | ||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | (36,515 | ) | (18,734 | ) | (39,734 | ) | — | |||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | (262,175 | ) | (171,210 | ) | (145,773 | ) | — | |||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | — | — | (7,273,098 | ) | (15,055,213 | ) | ||||||||||||||
Class C Shares | — | — | (814,522 | ) | (1,864,296 | ) | ||||||||||||||
Class R3 Shares | — | — | (626,460 | ) | (1,548,159 | ) | ||||||||||||||
Class I Shares | — | — | (4,130,328 | ) | (10,869,213 | ) | ||||||||||||||
Decrease in net assets from distributions to shareholders | (298,690 | ) | (189,944 | ) | (13,029,915 | ) | (29,336,881 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 8,776,236 | 11,274,510 | 12,325,539 | 12,433,450 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 232,524 | 126,784 | 12,340,502 | 27,114,416 | ||||||||||||||||
9,008,760 | 11,401,294 | 24,666,041 | 39,547,866 | |||||||||||||||||
Cost of shares redeemed | (6,182,134 | ) | (8,412,340 | ) | (23,261,339 | ) | (84,823,769 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | 2,826,626 | 2,988,954 | 1,404,702 | (45,275,903 | ) | |||||||||||||||
Net increase (decrease) in net assets | 10,896,393 | 3,972,745 | 7,602,960 | (70,043,130 | ) | |||||||||||||||
Net assets at the beginning of period | 46,654,507 | 42,681,762 | 123,937,759 | 193,980,889 | ||||||||||||||||
Net assets at the end of period | $ | 57,550,900 | $ | 46,654,507 | $ | 131,540,719 | $ | 123,937,759 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 79,917 | $ | 252,677 | $ | (75,489 | ) | $ | 166,586 |
See accompanying notes to financial statements.
NUVEEN | 29 |
Highlights (Unaudited)
Large Cap Select
Selected data for a share outstanding throughout the period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (1/03) |
| |||||||||||||||||||||||||||||||||||
2017(e) | $ | 21.24 | $ | 0.03 | $ | 3.71 | $ | 3.74 | $ | (0.09 | ) | $ | — | $ | (0.09 | ) | $ | 24.89 | ||||||||||||||||||
2016 | 20.59 | 0.09 | 0.61 | 0.70 | (0.05 | ) | — | (0.05 | ) | 21.24 | ||||||||||||||||||||||||||
2015 | 20.13 | 0.08 | 0.46 | 0.54 | (0.08 | ) | — | (0.08 | ) | 20.59 | ||||||||||||||||||||||||||
2014 | 17.65 | 0.05 | 2.48 | 2.53 | (0.05 | ) | — | (0.05 | ) | 20.13 | ||||||||||||||||||||||||||
2013 | 13.42 | 0.07 | 4.22 | 4.29 | (0.06 | ) | — | (0.06 | ) | 17.65 | ||||||||||||||||||||||||||
2012 | 11.73 | 0.03 | 1.66 | 1.69 | — | — | — | 13.42 | ||||||||||||||||||||||||||||
Class C (1/03) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 19.82 | (0.05 | ) | 3.46 | 3.41 | — | — | — | 23.23 | |||||||||||||||||||||||||||
2016 | 19.31 | (0.06 | ) | 0.57 | 0.51 | — | — | — | 19.82 | |||||||||||||||||||||||||||
2015 | 18.96 | (0.07 | ) | 0.42 | 0.35 | — | — | — | 19.31 | |||||||||||||||||||||||||||
2014 | 16.70 | (0.09 | ) | 2.35 | 2.26 | — | — | — | 18.96 | |||||||||||||||||||||||||||
2013 | 12.73 | (0.05 | ) | 4.02 | 3.97 | — | — | — | 16.70 | |||||||||||||||||||||||||||
2012 | 11.21 | (0.06 | ) | 1.58 | 1.52 | — | — | — | 12.73 | |||||||||||||||||||||||||||
Class I (1/03) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 21.42 | 0.07 | 3.72 | 3.79 | (0.14 | ) | — | (0.14 | ) | 25.07 | ||||||||||||||||||||||||||
2016 | 20.76 | 0.14 | 0.62 | 0.76 | (0.10 | ) | — | (0.10 | ) | 21.42 | ||||||||||||||||||||||||||
2015 | 20.30 | 0.13 | 0.46 | 0.59 | (0.13 | ) | — | (0.13 | ) | 20.76 | ||||||||||||||||||||||||||
2014 | 17.79 | 0.09 | 2.51 | 2.60 | (0.09 | ) | — | (0.09 | ) | 20.30 | ||||||||||||||||||||||||||
2013 | 13.52 | 0.11 | 4.26 | 4.37 | (0.10 | ) | — | (0.10 | ) | 17.79 | ||||||||||||||||||||||||||
2012 | 11.80 | 0.07 | 1.66 | 1.73 | (0.01 | ) | — | (0.01 | ) | 13.52 |
30 | 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(d) | ||||||||||||||||||||||||||||
17.65 | % | $ | 11,974 | 1.20 | %* | 0.21 | %* | 1.14 | %* | 0.27 | %* | 48 | % | |||||||||||||||||||||
3.40 | 7,983 | 1.22 | 0.44 | 1.21 | 0.45 | 116 | ||||||||||||||||||||||||||||
2.66 | 7,383 | 1.25 | 0.36 | 1.25 | 0.36 | 124 | ||||||||||||||||||||||||||||
14.35 | 6,511 | 1.31 | 0.23 | 1.30 | 0.24 | 154 | ||||||||||||||||||||||||||||
32.14 | 4,625 | 1.33 | 0.43 | 1.33 | 0.43 | 117 | ||||||||||||||||||||||||||||
14.41 | 2,924 | 1.43 | 0.26 | 1.43 | 0.26 | 127 | ||||||||||||||||||||||||||||
17.20 | 1,604 | 1.95 | * | (0.54 | )* | 1.89 | * | (0.48 | )* | 48 | ||||||||||||||||||||||||
2.64 | 1,074 | 1.97 | (0.32 | ) | 1.96 | (0.31 | ) | 116 | ||||||||||||||||||||||||||
1.85 | 684 | 2.00 | (0.38 | ) | 2.00 | (0.38 | ) | 124 | ||||||||||||||||||||||||||
13.53 | 683 | 2.07 | (0.53 | ) | 2.05 | (0.51 | ) | 154 | ||||||||||||||||||||||||||
31.08 | 518 | 2.07 | (0.34 | ) | 2.07 | (0.34 | ) | 117 | ||||||||||||||||||||||||||
13.65 | 195 | 2.18 | (0.49 | ) | 2.18 | (0.49 | ) | 127 | ||||||||||||||||||||||||||
17.76 | 43,972 | 0.95 | * | 0.49 | * | 0.89 | * | 0.55 | * | 48 | ||||||||||||||||||||||||
3.69 | 37,597 | 0.97 | 0.69 | 0.96 | 0.70 | 116 | ||||||||||||||||||||||||||||
2.88 | 34,615 | 1.00 | 0.63 | 1.00 | 0.63 | 124 | ||||||||||||||||||||||||||||
14.66 | 40,952 | 1.06 | 0.48 | 1.05 | 0.49 | 154 | ||||||||||||||||||||||||||||
32.43 | 34,444 | 1.08 | 0.72 | 1.08 | 0.72 | 117 | ||||||||||||||||||||||||||||
14.79 | 34,554 | 1.18 | 0.54 | 1.18 | 0.54 | 127 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
See accompanying notes to financial statements.
NUVEEN | 31 |
Financial Highlights (Unaudited) (continued)
Small Cap Select
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Class (Commencement Date) Year Ended October 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (5/92) |
| |||||||||||||||||||||||||||||||||||
2017(e) | $ | 9.21 | $ | (0.01 | ) | $ | 1.45 | $ | 1.44 | $ | (0.01 | ) | $ | (1.02 | ) | $ | (1.03 | ) | $ | 9.62 | ||||||||||||||||
2016 | 11.01 | 0.01 | 0.30 | 0.31 | — | (2.11 | ) | (2.11 | ) | 9.21 | ||||||||||||||||||||||||||
2015 | 14.48 | (0.02 | ) | 0.37 | 0.35 | — | (3.82 | ) | (3.82 | ) | 11.01 | |||||||||||||||||||||||||
2014 | 15.02 | (0.05 | ) | 0.87 | 0.82 | (0.02 | ) | (1.34 | ) | (1.36 | ) | 14.48 | ||||||||||||||||||||||||
2013 | 13.54 | — | * | 3.63 | 3.63 | — | (2.15 | ) | (2.15 | ) | 15.02 | |||||||||||||||||||||||||
2012 | 12.44 | (0.05 | ) | 1.45 | 1.40 | — | (0.30 | ) | (0.30 | ) | 13.54 | |||||||||||||||||||||||||
Class C (9/01) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 6.70 | (0.03 | ) | 1.05 | 1.02 | — | (1.02 | ) | (1.02 | ) | 6.70 | |||||||||||||||||||||||||
2016 | 8.64 | (0.04 | ) | 0.21 | 0.17 | — | (2.11 | ) | (2.11 | ) | 6.70 | |||||||||||||||||||||||||
2015 | 12.28 | (0.08 | ) | 0.26 | 0.18 | — | (3.82 | ) | (3.82 | ) | 8.64 | |||||||||||||||||||||||||
2014 | 13.00 | (0.14 | ) | 0.76 | 0.62 | — | (1.34 | ) | (1.34 | ) | 12.28 | |||||||||||||||||||||||||
2013 | 12.09 | (0.09 | ) | 3.15 | 3.06 | — | (2.15 | ) | (2.15 | ) | 13.00 | |||||||||||||||||||||||||
2012 | 11.22 | (0.13 | ) | 1.30 | 1.17 | — | (0.30 | ) | (0.30 | ) | 12.09 | |||||||||||||||||||||||||
Class R3 (1/94) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 8.53 | (0.02 | ) | 1.35 | 1.33 | — | (1.02 | ) | (1.02 | ) | 8.84 | |||||||||||||||||||||||||
2016 | 10.38 | (0.01 | ) | 0.27 | 0.26 | — | (2.11 | ) | (2.11 | ) | 8.53 | |||||||||||||||||||||||||
2015 | 13.91 | (0.04 | ) | 0.33 | 0.29 | — | (3.82 | ) | (3.82 | ) | 10.38 | |||||||||||||||||||||||||
2014 | 14.49 | (0.08 | ) | 0.84 | 0.76 | — | (1.34 | ) | (1.34 | ) | 13.91 | |||||||||||||||||||||||||
2013 | 13.17 | (0.03 | ) | 3.50 | 3.47 | — | (2.15 | ) | (2.15 | ) | 14.49 | |||||||||||||||||||||||||
2012 | 12.13 | (0.08 | ) | 1.42 | 1.34 | — | (0.30 | ) | (0.30 | ) | 13.17 | |||||||||||||||||||||||||
Class I (5/92) |
| |||||||||||||||||||||||||||||||||||
2017(e) | 11.24 | 0.01 | 1.76 | 1.77 | (0.03 | ) | (1.02 | ) | (1.05 | ) | 11.96 | |||||||||||||||||||||||||
2016 | 12.93 | 0.04 | 0.38 | 0.42 | — | (2.11 | ) | (2.11 | ) | 11.24 | ||||||||||||||||||||||||||
2015 | 16.30 | 0.02 | 0.43 | 0.45 | — | (3.82 | ) | (3.82 | ) | 12.93 | ||||||||||||||||||||||||||
2014 | 16.73 | (0.02 | ) | 0.99 | 0.97 | (0.06 | ) | (1.34 | ) | (1.40 | ) | 16.30 | ||||||||||||||||||||||||
2013 | 14.82 | 0.04 | 4.02 | 4.06 | — | (2.15 | ) | (2.15 | ) | 16.73 | ||||||||||||||||||||||||||
2012 | 13.54 | (0.02 | ) | 1.60 | 1.58 | — | (0.30 | ) | (0.30 | ) | 14.82 |
32 | 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(d) | ||||||||||||||||||||||||||||
15.63 | % | $ | 69,992 | 1.41 | %* | (0.14 | )%* | 1.40 | %* | (0.13 | )%* | 35 | % | |||||||||||||||||||||
4.05 | 67,428 | 1.44 | 0.10 | 1.44 | 0.10 | 66 | ||||||||||||||||||||||||||||
4.08 | 82,080 | 1.42 | (0.14 | ) | 1.42 | (0.14 | ) | 75 | ||||||||||||||||||||||||||
5.98 | 100,733 | 1.43 | (0.37 | ) | 1.43 | (0.37 | ) | 90 | ||||||||||||||||||||||||||
31.74 | 161,488 | 1.34 | (0.01 | ) | 1.33 | — | ** | 78 | ||||||||||||||||||||||||||
11.62 | 155,624 | 1.36 | (0.49 | ) | 1.28 | (0.41 | ) | 71 | ||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||
15.25 | 5,823 | 2.16 | * | (0.89 | )* | 2.15 | * | (0.88 | )* | 35 | ||||||||||||||||||||||||
3.37 | 5,625 | 2.19 | (0.65 | ) | 2.19 | (0.65 | ) | 66 | ||||||||||||||||||||||||||
3.19 | 8,036 | 2.17 | (0.88 | ) | 2.17 | (0.88 | ) | 75 | ||||||||||||||||||||||||||
5.28 | 8,976 | 2.19 | (1.12 | ) | 2.19 | (1.12 | ) | 90 | ||||||||||||||||||||||||||
30.67 | 10,331 | 2.09 | (0.75 | ) | 2.08 | (0.74 | ) | 78 | ||||||||||||||||||||||||||
10.81 | 10,058 | 2.11 | (1.21 | ) | 2.03 | (1.13 | ) | 71 | ||||||||||||||||||||||||||
15.51 | 5,770 | 1.66 | * | (0.40 | )* | 1.65 | * | (0.39 | )* | 35 | ||||||||||||||||||||||||
3.76 | 5,310 | 1.69 | (0.12 | ) | 1.69 | (0.12 | ) | 66 | ||||||||||||||||||||||||||
3.75 | 7,794 | 1.67 | (0.38 | ) | 1.67 | (0.38 | ) | 75 | ||||||||||||||||||||||||||
5.75 | 11,570 | 1.68 | (0.61 | ) | 1.68 | (0.61 | ) | 90 | ||||||||||||||||||||||||||
31.37 | 19,673 | 1.59 | (0.25 | ) | 1.58 | (0.25 | ) | 78 | ||||||||||||||||||||||||||
11.42 | 18,386 | 1.61 | (0.69 | ) | 1.53 | (0.61 | ) | 71 | ||||||||||||||||||||||||||
15.83 | 49,955 | 1.16 | * | 0.10 | * | 1.15 | * | 0.11 | * | 35 | ||||||||||||||||||||||||
4.33 | 45,574 | 1.19 | 0.36 | 1.19 | 0.36 | 66 | ||||||||||||||||||||||||||||
4.29 | 96,071 | 1.17 | 0.11 | 1.17 | 0.11 | 75 | ||||||||||||||||||||||||||||
6.23 | 156,292 | 1.18 | (0.11 | ) | 1.18 | (0.11 | ) | 90 | ||||||||||||||||||||||||||
32.02 | 283,064 | 1.09 | 0.24 | 1.08 | 0.25 | 78 | ||||||||||||||||||||||||||||
12.01 | 261,760 | 1.11 | (0.19 | ) | 1.03 | (0.11 | ) | 71 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended April 30, 2017. |
* | Rounds to less than $0.01 per share. |
** | Rounds to less than 0.01%. |
See accompanying notes to financial statements.
NUVEEN | 33 |
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 Large Cap Select Fund (“Large Cap Select”) and Nuveen Small Cap Select Fund (“Small Cap Select”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
The end of the reporting period for the Funds is April 30, 2017, and the period covered by these Notes to Financial Statements is the six months ended April 30, 2017 (the “current fiscal period”).
Investment Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, 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
The investment objective of Large Cap Select and Small Cap Select is capital appreciation.
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.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income is recorded on an accrual basis. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments, net of lending agent fees.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. 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, if any, are declared and distributed to shareholders annually. 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.
34 | NUVEEN |
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 fee and a 0.25% annual 12b-1 service fee. Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares 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.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Compensation
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 Funds’ Board of Directors (“the ”Board”) has adopted a deferred compensation plan for independent directors that enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Indemnifications
Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, 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 current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
Level 2 – | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 – | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
NUVEEN | 35 |
Notes to Financial Statements (Unaudited) (continued)
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, which may represent a transfer from a Level 1 to a Level 2 security.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the 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 an independent pricing service (“pricing service”) is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the 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:
Large Cap Select | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common stocks | $ | 57,231,305 | $ | — | $ | — | $ | 57,231,305 | ||||||||
Investments Purchased with Collateral from Securities Lending | 850,229 | — | — | 850,229 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 280,406 | — | — | 280,406 | ||||||||||||
Total | $ | 58,361,940 | $ | — | $ | — | $ | 58,361,940 | ||||||||
Small Cap Select | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Common stocks | $ | 129,142,788 | $ | — | $ | — | $ | 129,142,788 | ||||||||
Investments Purchased with Collateral from Securities Lending | 5,217,916 | — | — | 5,217,916 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 1,540,236 | — | — | 1,540,236 | ||||||||||||
Total | $ | 135,900,940 | $ | — | $ | — | $ | 135,900,940 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
36 | NUVEEN |
(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
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Funds retain the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each 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, when applicable. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Funds. Upon termination, the borrower is required to return to the Funds securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Funds have the right to use the collateral to acquire identical securities. In the event the Funds are delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Funds. Under the Funds’ securities lending agreement, however, the securities lending agent has indemnified the Funds 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 Funds. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association, serves as their securities lending agent. Each Fund pays the custodian a fee based on its proportional share of the custodian’s expense of operating its securities lending program. Income earned from the securities lending program is paid to the Fund, net of any fees paid. Income from securities lending, net of fees paid, is recognized as “Securities lending income, net” on the Statement of Operations.
The following table presents the securities out on loan for the Funds, if any, and the collateral delivered related to those securities as of the end of the reporting period.
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
Large Cap Select | Common Stocks | $ | 838,456 | $ | (838,456 | ) | $ | — | ||||||
Small Cap Select | Common Stocks | 5,119,210 | (5,119,210 | ) | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan. |
Securities lending fees paid by each Fund during the current fiscal period were as follows:
Large Cap Select | Small Cap Select | |||||||
Securities lending fees paid | $ | — | $ | 4,862 |
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Although the Funds are authorized to invest in derivative instruments, and may do so in the future, they did not make any such investments during the current fiscal period.
NUVEEN | 37 |
Notes to Financial Statements (Unaudited) (continued)
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
The Funds have an effective registration statement on file with the Securities and Exchange Commission (“SEC”) to issue Class T Shares, which were not yet available for public offering at the time this report was issued.
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||||||||||||||
Large Cap Select | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 136,033 | $ | 3,272,233 | 54,204 | $ | 1,127,672 | ||||||||||
Class C | 21,314 | 476,702 | 76,566 | 1,458,171 | ||||||||||||
Class I | 210,769 | 5,027,301 | 412,747 | 8,688,667 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 1,347 | 31,263 | 782 | 15,925 | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class I | 8,616 | 201,261 | 5,413 | 110,859 | ||||||||||||
378,079 | 9,008,760 | 549,712 | 11,401,294 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (32,084 | ) | (757,283 | ) | (37,719 | ) | (768,416 | ) | ||||||||
Class C | (6,453 | ) | (141,455 | ) | (57,761 | ) | (1,050,436 | ) | ||||||||
Class I | (220,849 | ) | (5,283,396 | ) | (329,867 | ) | (6,593,488 | ) | ||||||||
(259,386 | ) | (6,182,134 | ) | (425,347 | ) | (8,412,340 | ) | |||||||||
Net increase (decrease) | 118,693 | $ | 2,826,626 | 124,365 | $ | 2,988,954 | ||||||||||
Six Months Ended 4/30/17 | Year Ended 10/31/16 | |||||||||||||||
Small Cap Select | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 379,418 | $ | 3,708,500 | 652,426 | $ | 5,830,381 | ||||||||||
Class C | 72,341 | 489,413 | 45,717 | 282,999 | ||||||||||||
Class R3 | 83,514 | 756,320 | 132,060 | 1,086,215 | ||||||||||||
Class I | 615,632 | 7,371,306 | 487,410 | 5,233,855 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 756,259 | 7,237,272 | 1,724,098 | 14,930,690 | ||||||||||||
Class C | 117,522 | 785,044 | 279,101 | 1,769,503 | ||||||||||||
Class R3 | 71,215 | 625,978 | 192,470 | 1,547,457 | ||||||||||||
Class I | 310,066 | 3,692,208 | 840,452 | 8,866,766 | ||||||||||||
2,405,967 | 24,666,041 | 4,353,734 | 39,547,866 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,184,207 | ) | (11,432,656 | ) | (2,510,592 | ) | (22,602,897 | ) | ||||||||
Class C | (160,289 | ) | (1,096,875 | ) | (414,610 | ) | (2,839,116 | ) | ||||||||
Class R3 | (123,948 | ) | (1,110,113 | ) | (452,990 | ) | (3,726,307 | ) | ||||||||
Class I | (803,101 | ) | (9,621,695 | ) | (4,701,403 | ) | (55,655,449 | ) | ||||||||
(2,271,545 | ) | (23,261,339 | ) | (8,079,595 | ) | (84,823,769 | ) | |||||||||
Net increase (decrease) | 134,422 | $ | 1,404,702 | (3,725,861 | ) | $ | (45,275,903 | ) |
38 | NUVEEN |
5. Investment Transactions
Long-term purchases and sales (excluding investments purchased with collateral from securities lending) during the current fiscal period were as follows:
Large Cap Select | Small Cap Select | |||||||
Purchases | $ | 27,807,662 | $ | 46,303,435 | ||||
Sales | 25,107,461 | 57,532,084 |
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Funds.
As of April 30, 2017, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
Large Cap Select | Small Cap Select | |||||||
Cost of investments | $ | 50,199,081 | $ | 113,762,641 | ||||
Gross unrealized: | ||||||||
Appreciation | $ | 8,697,798 | $ | 27,501,427 | ||||
Depreciation | (534,939 | ) | (5,363,128 | ) | ||||
Net unrealized appreciation (depreciation) of investments | $ | 8,162,859 | $ | 22,138,299 |
Permanent differences, primarily due to federal taxes paid, distribution reallocations and tax equalization, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2016, the Funds’ last tax year end, as follows:
Large Cap Select | Small Cap Select | |||||||
Capital paid-in | $ | (11 | ) | $ | 1,216,967 | |||
Undistributed (Over-distribution of) net investment income | — | (25,735 | ) | |||||
Accumulated net realized gain (loss) | 11 | (1,191,232 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains as of October 31, 2016, the Funds’ last tax year end, were as follows:
Large Cap Select | Small Cap Select | |||||||
Undistributed net ordinary income1 | $ | 252,677 | $ | 313,977 | ||||
Undistributed net long-term capital gains | — | 12,839,379 |
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 October 31, 2016 was designated for purposes of the dividends paid deduction as follows:
Large Cap Select | Small Cap Select | |||||||
Distributions from net ordinary income1 | $ | 189,944 | $ | 7,985,811 | ||||
Distributions from net long-term capital gains | — | 21,351,070 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
NUVEEN | 39 |
Notes to Financial Statements (Unaudited) (continued)
As of October 31, 2016, the Funds’ last tax year end, the following Fund had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by the Fund.
Large Cap Select | ||||
Expiration: | ||||
October 31, 2017 | $ | 52,562,963 | ||
Not subject to expiration | — | |||
Total | $ | 52,562,963 |
During the Funds’ last tax year ended October 31, 2016, Large Cap Select utilized $1,224,920 of its capital loss carryforward.
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 Fund has elected to defer losses as follows:
Small Cap Select | ||||
Post-October capital losses2 | $ | — | ||
Late-year ordinary losses3 | 132,586 |
2 | Capital losses incurred from November 1, 2015 through October 31, 2016, the Funds’ last tax year end. |
3 | Ordinary losses incurred from January 1, 2016 through October 31, 2016 and/or specified losses incurred from November 1, 2015 through October 31, 2016. |
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.
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 | Large Cap Select | Small Cap Select | ||||||
For the first $125 million | 0.5000 | % | 0.6500 | % | ||||
For the next $125 million | 0.4875 | 0.6375 | ||||||
For the next $250 million | 0.4750 | 0.6250 | ||||||
For the next $500 million | 0.4625 | 0.6125 | ||||||
For the next $1 billion | 0.4500 | 0.6000 | ||||||
For net assets over $2 billion | 0.4250 | 0.5750 |
40 | NUVEEN |
The annual complex-level fee, payable monthly, for each Fund is determined by taking the complex-level fee rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets.” The complex level fee schedule for each Fund is as follows:
Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | 0.2000 | % | ||
$56 billion | 0.1996 | |||
$57 billion | 0.1989 | |||
$60 billion | 0.1961 | |||
$63 billion | 0.1931 | |||
$66 billion | 0.1900 | |||
$71 billion | 0.1851 | |||
$76 billion | 0.1806 | |||
$80 billion | 0.1773 | |||
$91 billion | 0.1691 | |||
$125 billion | 0.1599 | |||
$200 billion | 0.1505 | |||
$250 billion | 0.1469 | |||
$300 billion | 0.1445 |
* | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of 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 April 30, 2017, the complex-level fee for each Fund was as follows: |
Fund | Complex-Level Fee | |||
Large Cap Select | 0.2000 | % | ||
Small Cap Select | 0.2000 |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of each Fund so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table. The expense limitations expiring February 28, 2018 may be terminated or modified prior to that date only with the approval of the Board.
Fund | Expense Cap | Expense Cap Expiration Date | ||||
Large Cap Select | 0.89 | % | February 28, 2018 | |||
Small Cap Select | 1.15 | * | February 28, 2018 |
* | Effective June 1, 2017 (subsequent to the close of the reporting period), the Fund’s Expense Cap is 0.99% and will expire on July 31, 2019. |
Other Transactions with Affiliates
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:
Large Cap Select | Small Cap Select | |||||||
Sales charges collected | $ | 9,795 | $ | 15,574 | ||||
Paid to financial intermediaries | 8,718 | 13,812 |
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:
Large Cap Select | Small Cap Select | |||||||
Commission advances | $ | 2,090 | $ | 4,170 |
NUVEEN | 41 |
Notes to Financial Statements (Unaudited) (continued)
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
Large Cap Select | Small Cap Select | |||||||
12b-1 fees retained | $ | 692 | $ | 1,934 |
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:
Large Cap Select | Small Cap Select | |||||||
CDSC retained | $ | — | $ | 147 |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds 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 Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have 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 any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including all of the Funds covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 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.
9. New Accounting Pronouncements
Amendments to Regulation S-X
In October 2016, the SEC adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date of the amendments to Regulation S-X is August 1, 2017. Management is still evaluating the impact of the final rules, if any.
10. Subsequent Events
Management Fees
Effective June 1, 2017, the Adviser has agreed to waive fees and/or reimburse expenses of Small Cap Select through July 31, 2019 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 0.99% of the average daily net assets of any class of Fund shares. The expense limitation may be terminated or modified prior to July 31, 2019 only with the approval of the Board.
During May 2017, the Board appoved a change to each Fund’s annual Fund-level management fee schedule, which will become effective on August 1, 2017.
42 | NUVEEN |
Effective August 1, 2017, the annual Fund-level fee, payable monthly, for each Fund will be calculated according to the following schedules:
Average Daily Net Assets | Large Cap Select | Small Cap Select | ||||||
For the first $125 million | 0.5000 | % | 0.6500 | % | ||||
For the next $125 million | 0.4875 | 0.6375 | ||||||
For the next $250 million | 0.4750 | 0.6250 | ||||||
For the next $500 million | 0.4625 | 0.6125 | ||||||
For the next $1 billion | 0.4500 | 0.6000 | ||||||
For the next $3 billion | 0.4250 | 0.5750 | ||||||
For the next $2.5 billion | 0.4000 | 0.5500 | ||||||
For the next $2.5 billion | 0.3875 | 0.5375 | ||||||
For net assets of $10 billion and greater | 0.3750 | 0.5250 |
NUVEEN | 43 |
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
Custodian U.S. Bank National Association 1555 North Rivercenter Drive Milwaukee, WI 53202 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Transfer Agent and Boston Financial Nuveen Investor Services P.O. Box 8530 Boston, MA 02266-8530 (800) 257-8787 |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation. | ||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen 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 toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. | ||||||||||||||
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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
44 | NUVEEN |
Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Lipper Large-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Lipper Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Market Capitalization: The market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 3000® Index measures the performance of the 3,000 largest companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P 500® Index: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
NUVEEN | 45 |
Notes
46 | NUVEEN |
Notes
NUVEEN | 47 |
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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 solutions designed to be integral components of a well-diversified core portfolio. | ||||||||||||||
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Focused on meeting investor needs.
Nuveen is the investment management arm of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future. | ||||||||||||||
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Find out how we can help you. To learn more about how the products and services of Nuveen
Learn more about Nuveen Funds at: www.nuveen.com/mf | ||||||||||||||
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Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
MSA-FSLCT-0417P 184329-INV-B-06/18
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/ Kathleen L. Prudhomme | ||||
Kathleen L. Prudhomme Vice President and Secretary |
Date: July 6, 2017
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/ Greg A. Bottjer | ||||
Greg A. Bottjer Chief Administrative Officer (principal executive officer) |
Date: July 6, 2017
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: July 6, 2017