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: June 30
Date of reporting period: December 31, 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 Income Funds |
| Semi-Annual Report December 31, 2017 |
Share Class / Ticker Symbol | ||||||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | Class T | ||||||||||||
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Nuveen Core Bond Fund | FAIIX | NTIBX | — | NTIFX | FINIX | FIDTX | ||||||||||||
Nuveen Core Plus Bond Fund | FAFIX | FFAIX | FFISX | FPCFX | FFIIX | FFITX | ||||||||||||
Nuveen High Income Bond Fund | FJSIX | FCSIX | FANSX | — | FJSYX | FCPTX | ||||||||||||
Nuveen Inflation Protected Securities Fund | FAIPX | FCIPX | FRIPX | FISFX | FYIPX | FIFTX | ||||||||||||
Nuveen Short Term Bond Fund | FALTX | FBSCX | NSSRX | NSSFX | FLTIX | NSATX | ||||||||||||
Nuveen Strategic Income Fund | FCDDX | FCBCX | FABSX | FSFRX | FCBYX | FSFTX |
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NUVEEN | 3 |
to Shareholders
Dear Shareholders,
Financial markets ended 2017 on a high note. Concurrent growth across the world’s major economies, strong corporate profits, low inflation and accommodative central banks provided an optimal environment for rising asset prices with remarkably low volatility. Political risks, which were expected to be a wildcard in 2017, did not materialize. The Trump administration achieved one of its major policy goals with the passage of the Tax Cuts and Jobs Act, the European Union (EU) member governments elected EU-friendly leadership, Brexit negotiations moved forward and China’s 19th Party Congress concluded with no major surprises in its economic policy objectives.
Conditions have turned more volatile in 2018, but the positive fundamentals underpinning the markets’ rise over the past year remain intact. In early February, fears of rising inflation, which could prompt more aggressive action by the Federal Reserve, triggered a widespread sell-off across U.S. and global equity markets. Yet, global economies are still expanding and corporate earnings look healthy.
We do believe volatility will feature more prominently in 2018. Interest rates continue to rise and inflation pressures are mounting and investors are uncertain about how markets will react amid tighter financial conditions. After the relative calm of the past few years, it’s anticipated that price fluctuations will begin trending toward a more historically normal range. But we also note that signs foreshadowing recession are lacking at this point.
Maintaining perspective can be difficult with daily headlines focused predominantly on short-term news. Nuveen believes this can be an opportune time to check in with your financial advisor. Strong market appreciation such as that in 2017 may create an imbalance in a diversified portfolio. Your advisor can help you reexamine your investment goals and risk tolerance, and realign your portfolio’s investment mix appropriately. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
February 23, 2018
4 | NUVEEN |
Comments
Nuveen Core Bond Fund
Nuveen Core Plus Bond Fund
Nuveen High Income Bond Fund
Nuveen Inflation Protected Securities Fund
Nuveen Short Term Bond Fund
Nuveen Strategic Income Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. In this report, the various portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended December 31, 2017.
The management teams include:
Nuveen Core Bond Fund
Jeffrey J. Ebert, Wan-Chong Kung, CFA, Chris J. Neuharth and Jason J. O’Brien, CFA, have been part of the management team for the Fund since 2000, 2002, 2012 and 2016, respectively.
Nuveen Core Plus Bond Fund
Timothy A. Palmer, CFA, has managed the Fund since 2003. Wan-Chong Kung, CFA, Jeffrey J. Ebert and Chris J. Neuharth joined the Fund as portfolio managers in 2001, 2005 and 2006, respectively. Douglas M. Baker, CFA, joined the Fund as portfolio manager in 2016.
Nuveen High Income Bond Fund
John T. Fruit, CFA, has managed the Fund since 2005. Jeffrey T. Schmitz, CFA, has been part of the management team for the Fund since 2008.
Nuveen Inflation Protected Securities Fund
Wan-Chong Kung, CFA, has managed the Fund since its inception in 2004 and Chad W. Kemper joined the Fund as a portfolio manager in 2010.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
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.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
NUVEEN | 5 |
Portfolio Managers’ Comments (continued)
Nuveen Short Term Bond Fund
Chris J. Neuharth and Peter L. Agrimson, CFA, have been on the management team since 2004 and 2010, respectively. Jason J. O’Brien, CFA, and Mackenzie S. Meyer joined the Fund in 2016.
Nuveen Strategic Income Fund
Timothy A. Palmer, CFA, has managed the Fund since 2005. Jeffrey J. Ebert, Marie A. Newcome, CFA, and Douglas M. Baker, CFA, joined the Fund as co-portfolio managers in 2000, 2011 and 2016, respectively.
What strategies were used to manage the Funds during the six-month reporting period and how did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics used previously, although implementation of those strategies depended on the individual characteristics of the portfolios, as well as market conditions. The Funds’ management teams use a highly collaborative, research-driven approach that we believe offers the best opportunity to achieve consistent, superior long-term performance on a risk-adjusted basis across the full range of market environments. During the reporting period, the Funds were generally positioned for an environment of continued moderate economic growth. Nonetheless, during the reporting period we made smaller scaled shifts on an ongoing basis that were geared toward improving each Fund’s profile in response to changing conditions and valuations. These strategic moves are discussed in more detail within each Fund’s section of this report.
Nuveen Core Bond Fund
The Fund’s Class A Shares at net asset value (NAV) outperformed the Bloomberg Barclays Aggregate Bond Index and the Lipper Core Bond Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the reporting period, before moving higher toward the end of the reporting period, responding to developments surrounding Federal Reserve (Fed) policy and U.S. tax reform. In moves well-communicated with the markets in advance, the Fed began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty. The U.S. Treasury yield curve flattened dramatically with the 30-year Treasury yield closing slightly lower, while the two-year Treasury yield increased 50 basis points, reaching its highest level of this cycle. Catalysts for the curve flattening included stronger economic data, the Fed’s rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds.
Investment grade bonds enjoyed a fairly strong period as corporate earnings remained strong, overall credit fundamentals were constructive and technicals were supportive due to demand from overseas investors searching for higher yields. Corporates posted an uptick in gross leverage to a level marginally higher than pre-crisis in 2008-2009, although because of high cash levels, net leverage remained consistent with a late expansion. Credit spreads continued to contract and ended the reporting period at their tightest levels since 2007. Corporate bond issuance remained elevated with several industries taking advantage of tight spreads and low rates to fund merger and acquisition activity and share buybacks.
In the securitized sectors, range-bound rates and relatively low levels of volatility provided a solid backdrop for mortgage-backed securities (MBS). In October 2017, the Fed began its quantitative tightening by reducing its monthly reinvestments in MBS by $4 billion per month. However, the runoff was easily absorbed by banks, real estate investment trusts (REITs) and foreign buyers because overall MBS supply declined due to seasonal factors in the housing market. The asset-backed securities (ABS) sector recovered following the summer’s devastating hurricanes because losses were lighter than initially feared. Buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for ABS. The commercial mortgage-backed securities (CMBS) sector outperformed Treasuries, although heavier-than-normal issuance late in the reporting period caused the segment to lag corporates.
6 | NUVEEN |
Generally speaking, our sector positioning had a positive impact on the Fund’s relative returns versus the benchmarks. Our investment grade credit exposure was the main positive driver of returns during the reporting period, particularly the Fund’s significant overweight to BBB rated securities. Stronger economic data and the signing of the new tax plan was favorable for spread-related assets. However, security selection was a modest detractor because higher-beta securities generally outperformed in the “risk on” environment. Historically, we have focused the Fund’s exposure in lower-beta securities at the lower rated end (A and BBB) of the investment grade sector.
Also noted above, interest rates rose fairly significantly at the short end of the yield curve during the reporting period as economic data improved and the Fed moved ahead with another rate hike in December. We had positioned the Fund with a modestly shorter duration than the benchmark, which lessened its interest rate sensitivity, focused on the front of the yield curve. This shorter duration stance benefited the Fund’s performance. At the long end of the curve, rates moved lower for 30-year securities, the only segment where rates were down over the reporting period. Better economic data, tax reform, relatively subdued inflation data and increased investor demand for longer maturity Treasuries drove 30-year yields lower. We tactically traded securities along the yield curve for much of the reporting period; however, our positioning for a flatter curve proved only modestly beneficial to the Fund’s performance.
Our collective exposure to securitized asset classes also had a positive impact on the Fund’s results. In particular, the Fund’s overweight positions in the ABS and CMBS sectors benefited performance. In the ABS sector, we emphasized high quality, short maturity securities, which benefited from strong demand for yield at the short end of the yield curve. In the Fund’s CMBS exposure, we maintained a bias toward securities rated below AAA. The mortgage sector posted positive excess returns during this reporting period despite the Fed’s announcement regarding the start date for unwinding its balance sheet. Therefore, the Fund’s modest underweight to the MBS sector was a slight detractor from performance. Although the Fed eventually began to decrease its monthly reinvestments in MBS starting in October 2017, the MBS sector was able to outperform because this was already priced into the market and the additional supply was easily absorbed. The MBS market was also supported by the low volatility environment and modestly higher interest rates.
We continued to manage the Fund with essentially the same overarching investment themes during the reporting period with a strategic focus on generating above-market income and managing credit risk. We invested primarily in securities from the investment grade corporate and securitized sectors, with an emphasis on bottom-up security selection. Because the macroeconomic backdrop remained constructive for spread sectors, we maintained the Fund’s overweight position in the investment grade credit sector and more specifically an overweight in BBB rated credits versus the benchmark. Although corporate and consumer credit fundamentals are steady and benefit from the current economic environment, credit spread valuations have compressed close to their tightest levels in years. While we do not see a catalyst for a large near-term widening, these levels warrant a more balanced overall risk posture. We continue to find opportunities in individual credits and are focusing closely on bottom-up fundamental research for both return and risk management. From an industry standpoint, we continued to favor financials in light of strong fundamentals, supportive issuance trends and relative valuations.
High quality income from securitized sectors continued to play a role in the Fund’s positioning. In terms of the Fund’s specific exposures to the securitized sectors, we strategically maintained its modest underweight to MBS versus the benchmark because we believed the Fed’s balance sheet unwind would weigh on performance over the longer term. However, the mortgage sector does provide attractive, high quality income so we continued to look for opportunities to reinvest paydowns on weakness to stay fairly close to the benchmark weight. We believed the short end of the ABS market still offered value to investors versus positions in short maturity Treasuries. Therefore, we maintained the Fund’s overweight to that sector, while continuing to look for bottom-up opportunities in that space. We maintained a relatively steady allocation to the CMBS sector throughout the reporting period because valuations were not attractive enough for us to add exposure. However, we will continue to overweight this sector versus the benchmark because commercial real estate fundamentals are still trending in the right direction.
Given our outlook for moderate economic growth and a measured pace for the Fed’s interest rate and balance sheet normalization, we continued to believe interest rates were more likely to move higher. Therefore, we remained defensive by keeping the Fund’s duration strategically shorter than the benchmark’s duration. We tactically traded duration as we hit near-term rate targets and will continue to do so to manage the overall duration and yield curve exposure of the Fund.
NUVEEN | 7 |
Portfolio Managers’ Comments (continued)
In addition, we continued to use various derivative instruments in the Fund during the reporting period. We used U.S. Treasury note and bond futures as part of an overall construction strategy to manage the Fund’s duration and yield curve exposure. The effect of these activities during the reporting period was positive.
Nuveen Core Plus Bond Fund
The Fund’s Class A Shares at net asset value (NAV) outperformed both the Bloomberg Barclays Aggregate Bond Index and the Lipper Core Plus Bond Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the period, before moving higher into the end of the reporting period, responding to developments surrounding Federal Reserve (Fed) policy and U.S. tax reform. In moves well-communicated with the markets in advance, the Fed began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period as they’ve done all year, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty. The U.S. Treasury yield curve flattened dramatically with the 30-year Treasury yield closing slightly lower, while the two-year Treasury yield increased 50 basis points, reaching its highest level of the reporting period. Catalysts for the curve flattening included stronger economic data, the Fed’s rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds.
Investment grade bonds enjoyed a fairly strong period as corporate earnings remained strong, overall credit fundamentals were constructive and technicals were supportive due to demand from overseas investors searching for higher yields. Corporates posted an uptick in gross leverage to a level marginally higher than pre-crisis in 2008-2009, although because of high cash levels, net leverage remained consistent with a late expansion. Credit spreads continued to contract and ended the reporting period at their tightest levels since 2007. Corporate bond issuance remained elevated with several industries taking advantage of tight spreads and low rates to fund merger and acquisition activity and share buybacks. Globally, credit also performed well with European corporates keeping pace with U.S. credit and emerging market (EM) credit outperforming developed market (DM) credit.
High yield credit continued to benefit from the tailwinds of accelerating global growth and a reflationary macro backdrop, which drove double-digit earnings growth in 2017, along with low levels of market volatility. Funding and refinancing conditions also remained largely supportive of the segment throughout the reporting period, resulting in a high level of refinancing activity that helped to extend the current credit cycle. Therefore, high yield spreads versus Treasuries still managed to grind tighter, broaching the lows reached in mid-2014, despite continued rate hikes, the Fed’s balance sheet runoff announcement and the worst year for high yield mutual fund flows in the post-crisis period.
In the securitized sectors, range-bound rates and relatively low levels of volatility provided a solid backdrop for mortgage-backed securities (MBS). In October, the Fed began its quantitative tightening by reducing its monthly reinvestments in MBS by $4 billion per month. However, the runoff was easily absorbed by banks, real estate investment trusts (REITs) and foreign buyers because overall MBS supply declined due to seasonal factors in the housing market. The asset-backed securities (ABS) sector recovered following the summer’s devastating hurricanes because losses were lighter than initially feared. Buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for ABS. The commercial mortgage-backed securities (CMBS) sector outperformed Treasuries, although heavier-than-normal issuance late in the reporting period caused the segment to lag corporates.
EM debt capped a year of strong relative and absolute performance supported by the risk-on, low volatility market environment and continued robust investor inflows. Broad strength in both EM and DM economies and higher commodity prices outweighed potential concerns from continued policy normalization and balance sheet reduction from the Fed and other central banks. Although some geopolitical risks remained, they failed to drive any broadly negative impact on the markets. Latin America and Africa outperformed given these regions’ higher yields and significant spread tightening in higher risk countries during the reporting period. Local EM markets benefited from a constructive global backdrop, although several markets saw big moves based on country specific political factors, including South Africa, Mexico and Turkey. EM currencies generally benefited from the weaker dollar and low volatility.
8 | NUVEEN |
Global interest rates remained largely range bound during the reporting period and exhibited relatively low volatility, finishing the reporting period with modest returns. Robust economic data, combined with continued low inflation, supported risk while keeping a lid on interest rates. As widely expected, the European Central Bank extended its quantitative easing until late 2018. However, Canada increased interest rates twice, removing cuts from 2015 made in response to the oil collapse, while the Bank of England raised rates in November 2017 for the first time in a decade. With this backdrop, yield curves flattened significantly and developed markets generally outperformed the U.S. The dollar was pressured lower during the six-month reporting period by a combination of factors including relative interest rate policy, strong growth outside the U.S., capital flows and policy uncertainty, including trade relations.
The Fund’s performance benefited from its yield advantage versus the benchmark and broad overweight to credit sectors. We continued to maintain a large underweight in Treasuries, given our constructive economic view and the relatively unattractive duration and yield profile of that sector.
The largest driver of outperformance versus the benchmark during the reporting period was the Fund’s meaningful overweight to investment grade corporates. Additionally, the Fund’s overweight position in BBB rated credits proved rewarding because lower quality issues led in excess returns, driven by favorable economic conditions and strong demand for yield from investors. The portfolio’s overweight to preferred and contingent capital (CoCo) securities was also a substantial driver of outperformance. These securities performed well during the reporting period due to strong bank fundamentals, attractive valuations, limited supply, strong demand and low interest rate volatility.
A reduced weight in high yield, along with hedges in the sector, resulted in a small net impact on performance from the sector. Although our high yield portfolio outperformed Treasuries, it did not outperform other spread sectors, given our hedging. The Fund’s exposures to securitized sectors, including CMBS and ABS, had minimal influence on performance over this reporting period, but did contribute to portfolio income. Additionally, non-U.S. positions had very little impact, given the Fund’s small foreign exposure and our hedging of currency risk.
Our overall interest rate positioning had a marginally negative effect on performance. An overweight position on the yield curve to intermediate maturities detracted more than the gains from the Fund’s slightly defensive duration stance, which lessened its sensitivity to rising short-term rates.
Our strategy during the reporting period remained biased toward income generation through diversified holdings, while continuing to look for opportunities to reduce risk in areas where risk premiums had tightened meaningfully, reducing forward-looking attractiveness. Economic and corporate fundamentals remained firm and continued robust investor demand drove further spread tightening in corporates. In November 2017, we significantly reduced the Fund’s large overweight in investment grade corporates through sales and reductions in positions that had met or exceeded our valuation targets. Sales included industrials as well as financials, focusing on BBB rated credits. Within credit, we maintained the Fund’s significant overweight to financials, including positions in preferred securities and CoCos, given attractive valuations and strong fundamentals in the segment. Proceeds from corporate sales were largely reinvested in MBS, moving the Fund closer to a neutral weighting in the segment, while providing additional liquidity and increasing our flexibility to take advantage of market opportunities likely to arise in 2018. Other activity during the reporting period was focused on managing company specific exposures based on our research views, fundamental developments and valuation changes.
We increased the Fund’s weights in the CMBS and ABS segments as sources of attractive diversified, high quality income. We continued to implement our bottom-up focused approach to finding opportunities in the securitized asset classes, as well as in select foreign markets. However, with U.S. rates high relative to global peers and rising idiosyncratic risk in some markets, global bond positioning is at the low end of the Fund’s range. As mentioned, we also continued to maintain the Fund’s significant underweight in Treasuries.
Interest rate positioning was marginally defensive for most of the reporting period, but we made adjustments based on valuations and risk management. At the end of the reporting period, the Fund’s duration remained moderately shorter than the benchmark index, given our bias for higher yields in 2018. Although the potential for volatility continues, particularly associated with central bank
NUVEEN | 9 |
Portfolio Managers’ Comments (continued)
balance sheet and policy transition, we expect the current rate cycle to be drawn out and the upside move in rates to be contained by macro factors. As a result, we do not believe that an aggressive positioning in interest rates is a beneficial strategy from a risk/reward perspective at this time.
During the reporting period, we also continued to use various derivative instruments. We used Treasury note and bond futures as part of an overall construction strategy to manage the Fund’s duration and yield curve exposure. These derivative positions had a positive impact on performance during the reporting period.
We used forward foreign currency exchange contracts to manage the Fund’s foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from the Fund’s bond portfolio, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation. These positions had a negligible impact on performance during the reporting period.
The Fund also entered into credit default swaps to take on credit risk and earn a commensurate credit spread. The effect of these activities on performance was negative during the reporting period.
The Fund also purchased a small amount of call options on futures during the period. The call options had a negligible impact on performance and these positions were terminated prior to the end of the reporting period.
Nuveen High Income Bond Fund
The Fund’s Class A Shares at net asset value (NAV) outperformed both the Bloomberg Barclays High Yield 2% Issuer Capped Index and the Lipper High Yield Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the period, before moving higher into year-end, responding to developments surrounding Federal Reserve (Fed) policy and U.S. tax reform. In moves well-communicated with markets in advance, the Fed began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty. The U.S. Treasury yield curve flattened dramatically with the 30-year Treasury yield closing slightly lower during the reporting period, while the two-year Treasury yield increased 50 basis points, reaching its highest level of this cycle. Catalysts for the curve flattening included stronger economic data, the Fed’s rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds.
Strong global growth and a supportive macro backdrop were both drivers of improved corporate fundamentals and, combined with collapsing market volatility, were strong tailwinds for high yield credit throughout the reporting period. The second half of the reporting period did not offer as much in the way of upside as the market experienced during the first half of the reporting period. The overall high yield market returned 2.46% during the reporting period as measured by the Bloomberg Barclays High Yield 2% Issuer Capped Bond Index, even as enthusiasm for the new U.S. tax reform bill was helping U.S. equities deliver outsized gains. The S&P 500® Index surpassed 2,600 for the first time ever in late November 2017 and flirted with 2,700 by the end of the reporting period, advancing 11.42% over the reporting period. Despite the favorable macro backdrop, the high yield market was kept in check by historically tight spreads versus Treasuries, outflows from the asset class and mixed effects from tax reform. In addition, the high yield sector has disproportionate exposure to some of the more fundamentally and secularly challenged industries such as retail, auto rentals, wirelines and hospitals, all of which experienced difficulties during the reporting period. And finally, the market was impacted by the specter of a notable and growing shift in central bank policy, which represents a reversal of the friendly monetary backdrop that has been extremely supportive for credit markets for years.
Following the year-to-date rally, high yield spreads ended the reporting period trading at multi-year lows; however, the risk of a downturn in the credit cycle also seemed diminished. For the first time in many years, the world economy enjoyed a synchronized recovery during the reporting period and corporate fundamentals followed suit. Inflation came in weaker than expectations and kept
10 | NUVEEN |
financial conditions easy and rates very well behaved. The global appetite for yield kept funds flowing into U.S. credit and even with spreads at rich valuations, the ultra-low volatility made yields on U.S. credit look attractive. The record pace of refinancing across both loans and bonds has had the effect of extending the current credit cycle. That has led to realized and projected default rates well below the 3.5% long-term average.
Lower rated securities continued to perform well during the reporting period, with CCC rated bonds outperforming both B and BB rated securities. Much of the strength in lower rated securities was due to the rebound in energy and commodity prices, which helped lead to outperformance in energy bonds and metals/mining bonds. Elsewhere from a sector standpoint, the weak spots within U.S. high yield as mentioned above were retail (including supermarkets), wireline communications and health care, most notably hospitals. Besides energy and basic materials, other strong performers were cyclical sectors such as transportation and industrials.
The U.S. tax reforms have introduced an element of uncertainty, by lowering the corporate tax rate but also limiting interest deductibility. While the exact impact is not known, we do know that the new limitations on interest deductibility will be a bigger issue for CCC rated/stressed issuers. However, we do believe the changes will likely be manageable for the leveraged finance space as a whole. For much of high yield companies, the benefit of a lower corporate rate and the ability to depreciate more capital expenditures outweigh the inability to fully deduct interest expense.
The Fund’s outperformance during the reporting period was mainly driven by the better environment for risk appetites that led to a significant improvement in market liquidity and the outperformance of lower quality credit. The Fund generally benefited from relative strength in a number of cyclical sectors as well as its broader down-in-quality positioning. More specifically, the Fund’s performance was aided by our overweights to cyclical areas of the market including basic materials, energy, transportation and select industrials. The increase in global economic activity led to a rebound in a variety of commodity prices, which helped the metals and mining and chemical sectors in particular to experience attractive gains. Although the Fund’s energy exposure was roughly in line with the benchmark weighting, we benefited from our security selection and slight bias to lower rated energy issues. Underweight positions in the telecommunications and health care sectors were also positive contributors. Additionally, the Fund’s allocation to European financial credits continued to be a positive source of performance. The credit quality of European Union banks has remained positive because of better asset quality and stronger regulatory ratios in the past year. Despite the overall strength in the cyclical areas, the Fund did have two underperforming coal credits and one underperforming energy credit that detracted from performance. The coal sector in particular continued to feel pressure from environmental regulation and low natural gas prices. In addition, weakness in an individual shipping credit detracted from performance.
We also maintained a down-in-quality bias in the Fund’s portfolio with a keen focus on bottom-up fundamental research, which worked well during the reporting period as CCC rated securities outperformed higher quality debt. For a variety of reasons, lower quality high yield issuers had underperformed for much of the first half of the reporting period, but perhaps mainly due to a pervasive view that the credit cycle was overextended and valuations were stretched. This, combined with the specter of tightening liquidity conditions, had led to an up-in-quality bias in the high yield market during the first half of the reporting period. These fears dissipated as the second half of the reporting period wore on, while the strength in higher beta energy also helped CCC rated bonds outperform the overall index and single B rated securities in particular. We believed lower quality debt would continue to perform well during an environment of strong credit conditions and potentially higher interest rates. Low volatility and a sideways-to-tighter move in spreads are consistent with an extension of the credit cycle. Long economic expansions are typically good news for credit because higher free cash flow from sustained economic growth improves company balance sheets and generally leads to credit rating upgrades.
We are maintaining the Fund’s underweight to the BB rated portion of the high yield market because we don’t see much in the way of upside, given valuations at the end of the reporting period and this segment’s greater sensitivity to higher rates. We still prefer to search for improving fundamental stories among single B and CCC rated issuers that have higher yields and the potential for capital gains, because we believe the improvement in credit fundamentals should favor lower rated segments of the market. We believe the ongoing global economic expansion should be constructive for the basic materials sectors of chemicals, paper, packaging and mining as well as energy, causing us to continue overweighting those sectors during the reporting period. The overall high yield market, including the energy sector, exhibited less sensitivity to the decline in oil prices earlier in the reporting period compared with 2016. We also added selectively to the retail sector because valuations looked compelling among select issuers.
NUVEEN | 11 |
Portfolio Managers’ Comments (continued)
Although these sectors were generally stable fundamentally, we continued to underweight health care, cable/satellite communications and technology based on valuation considerations. However, we did find select opportunities in those sectors. We also continued to find value in European financial preferred securities and maintained a small allocation to that area of the market.
We maintained the Fund’s average duration (interest rate sensitivity) of around 3.7 years at the end of the reporting period, which was in line with the benchmark’s duration. The high yield asset class has an inherently low duration compared to other fixed income asset classes, while its incremental yield helps mitigate price movements in a rising rate environment. Therefore, we continue to believe this segment offers more of a hedge against interest rate moves compared to other fixed income alternatives.
During the reporting period, we also continued to use various derivative instruments. We used U.S. Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. The effect of these activities during the reporting period was negligible.
We used foreign currency exchange contracts to manage the Fund’s foreign currency exposures. During the reporting period, these instruments were used primarily for hedging purposes to reduce unwanted currency exposure from the Fund’s bond portfolio. These positions had a negligible impact on performance during the reporting period.
Nuveen Inflation Protected Securities Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed the Bloomberg Barclays U.S. TIPS Index and outperformed the Lipper Inflation-Protected Bond Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the reporting period, before moving higher into year-end, responding to developments surrounding Federal Reserve (Fed) policy and U.S. tax reform. In moves well-communicated with markets in advance, the Fed began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period. This stance, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty. The U.S. Treasury yield curve flattened dramatically with the 30-year Treasury yield closing slightly lower on the reporting period, while the two-year Treasury yield increased 50 basis points, reaching its highest level of this cycle. Catalysts for the curve flattening included stronger economic data, the Fed’s rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds.
Inflation readings arrested their softening from earlier in the reporting period, but still remained fairly benign. Treasury inflation-protected securities (TIPS) performed well during the reporting period supported by stronger energy prices, renewed hopes of tax reform and its eventual passage, higher real yields from early in the reporting period and attractive breakeven rates. (Breakeven rates measure the difference between the yields of nominal Treasuries versus TIPS with the same maturity.) The TIPS market also continued to see positive inflows into the segment, although the inflows slowed as the period progressed. The TIPS yield curve flattened during the reporting period with real yields for five-year TIPS slightly higher, ending the year at 0.29% after hitting their highest point of the year at 0.40% on December 20th. Yields across the rest of the TIPS curve fell during the reporting period with 10-year TIPS down 14 basis points to 0.43%, and 30-year TIPS yields down 27 basis points to end the reporting period at 0.72%. Breakeven rates moved wider (or improved) across the TIPS yield curve, and ended the reporting period at their widest level since first quarter 2017 in the five- and 10-year segments. The TIPS sector outperformed versus nominal Treasury securities with the Bloomberg Barclays TIPS Index posting a 2.14% return.
Investment grade bonds enjoyed a fairly strong period as corporate earnings remained strong, overall credit fundamentals were constructive and technicals were supportive due to demand from overseas investors searching for higher yields. Corporates posted an uptick in gross leverage to a level marginally higher than pre-crisis in 2008-2009, although because of high cash levels, net leverage remained consistent with a late expansion. Credit spreads continued to contract and ended the reporting period at their tightest levels since 2007. Corporate bond issuance remained elevated with several industries taking advantage of tight spreads and low rates to fund merger and acquisition activity and share buybacks. High yield credit continued to benefit from the tailwinds of
12 | NUVEEN |
accelerating global growth and a reflationary macro backdrop, which drove double-digit earnings growth in 2017, along with low levels of market volatility. Funding and refinancing conditions also remained largely supportive of the segment throughout the reporting period, resulting in a high level of refinancing activity that helped to extend the current credit cycle. Therefore, high yield spreads versus Treasuries still managed to grind tighter, broaching the lows reached in mid-2014, despite continued rate hikes, the Fed’s balance sheet runoff announcement and the worst year for high yield mutual fund flows in the post-crisis period.
In the securitized sectors, range-bound rates and relatively low levels of volatility provided a solid backdrop for mortgage-backed securities (MBS). In October 2017, the Fed began its quantitative tightening by reducing its monthly reinvestments in MBS by $4 billion per month. However, the runoff was easily absorbed by banks, real; estate investment trusts (REITs) and foreign buyers because overall MBS supply declined due to seasonal factors in the housing market. The asset-backed securities (ABS) sector recovered following the summer’s devastating hurricanes because losses were lighter than initially feared. Buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for ABS. The commercial mortgage-backed securities (CMBS) sector outperformed Treasuries, although heavier-than-normal issuance late in the reporting period caused the segment to lag corporates.
In terms of performance, the Fund’s modest exposures to non-government spread sectors, including ABS, CMBS, high yield credit and investment grade credit, were beneficial. These sectors produced excess returns over Treasuries during the reporting period. We also benefited from further reducing the Fund’s short duration profile and maintaining that positioning through the end of the reporting period. This shorter duration stance lessened the Fund’s interest rate sensitivity, which proved beneficial in light of rising short-term rates throughout the reporting period. The Fund ended the reporting period with a duration of 7.12 years, which was shorter than the 7.63 year duration of the Bloomberg Barclays TIPS Index. In terms of yield curve positioning, we did not make any major shifts during the reporting period. Therefore, yield curve was not a major performance driver. On the other hand, the Fund’s underweight position in TIPS hindered performance because this segment outperformed nominal Treasury securities, especially late in the reporting period as the tax deal was being finalized. Although we slightly increased the Fund’s TIPS exposure from approximately 85% of the Fund’s assets to about 86% of the portfolio by year-end 2017, our position still represented a significant underweight versus the index’s 100% TIPS exposure.
Later in the reporting period, we slightly decreased the Fund’s nominal Treasury exposure. We also slightly decreased exposure to both the high yield and investment grade corporate sectors. Although corporate and consumer credit fundamentals are steady and benefit from the current economic environment, credit spread valuations have compressed close to their tightest levels in years. While we do not see a catalyst for a large near-term widening, these levels warrant a more balanced overall risk posture. The Fund’s high yield and investment grade corporate exposures are focused in the industrial segment. With the proceeds, we slightly increased the Fund’s allocations across the MBS, CMBS and ABS sectors because we believe the macroeconomic backdrop remains constructive for these spread sectors. The Fund continued to have a fairly significant underweight to the TIPS segment relative to the benchmark. We also continued to position the portfolio’s duration shorter than the benchmark at the end of the reporting period in anticipation of rising interest rates. Although the potential for volatility continues, we expect the current rate cycle to be drawn out and the upside move in rates to be contained by macro factors.
We also used U.S. Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. These derivative positions had a negligible impact on performance during the reporting period.
Nuveen Short Term Bond Fund
The Fund’s Class A Shares at net asset value (NAV) outperformed the Bloomberg Barclays 1-3 Year Government/Credit Bond Index and underperformed the Lipper Short Investment Grade Debt Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. In moves well-communicated with markets in advance, the Federal Reserve (Fed) began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period as they’ve done all year, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty.
NUVEEN | 13 |
Portfolio Managers’ Comments (continued)
The U.S. Treasury yield curve flattened dramatically during the reporting period. At the long end of the yield curve, rates moved slightly lower for 30-year securities, the only segment where rates were down. At the short end, the two-year Treasury yield reached its highest level of this reporting period, increasing by 50 basis points over the six-month reporting period as a whole. Five-year Treasury rates were 28 basis points higher. Catalysts for the curve flattening included stronger economic data, the Fed’s December rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds. The return of the Fund’s shorter duration benchmark, the Bloomberg Barclays 1-3 Year Government/Credit Index, was 0.13%.
In the corporate market, investment grade bonds enjoyed a fairly strong period as corporate earnings remained strong, overall credit fundamentals were constructive and technicals were supportive due to robust demand from overseas investors searching for higher yields. Corporates posted an uptick in gross leverage to a level marginally higher than pre-crisis in 2008-2009, although because of high cash levels, net leverage remained consistent with a late expansion. Credit spreads continued to contract and ended the reporting period at their tightest levels since 2007. Corporate bond issuance remained elevated with several industries taking advantage of tight spreads and low rates to fund merger and acquisition activity and share buybacks.
In the securitized sectors, both the commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) segments outperformed in the first two months of the six-month reporting period, but took a step back in September 2017 on the heels of the hurricanes, North Korea tensions and the Toys-R-Us bankruptcy filing. Later in the reporting period, however, the ABS sector recovered as buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for these securities. The CMBS sector outperformed Treasuries because investors continued to view the sector as a relatively safe source of yield, taking comfort in improved underwriting in the segment. Short maturity, residential mortgage-backed securities (MBS) performed well supported by relatively low levels of volatility, continued strong fundamentals in the housing market and strong investor demand.
Generally speaking, the most significant driver of the Fund’s outperformance relative to the benchmark was its broad overweight to the corporate and securitized sectors and corresponding underweight to Treasuries. Our overweight positions in industrials and financials contributed most of the outperformance in investment grade corporate bonds. Also, the Fund’s modest exposure to short-duration, high yield credit contributed to relative performance due primarily to the higher income levels of these securities. The Fund’s high yield exposure is focused on bonds rated BB and single B with two- to four-year maturities.
The Fund’s overall exposure to securitized sectors was a positive contributor because these segments saw spreads move mostly tighter during the reporting period. Typically between 40-45% of the Fund’s portfolio is allocated to securitized products, broadly diversified across the residential MBS, CMBS and ABS sectors. Rising short-term interest rates and a flatter yield curve contributed to demand for short maturity ABS, benefiting that sector. Spreads versus Treasuries remained tight in the ABS segment in the face of the heavy new issue supply. Net supply of CMBS shifted positive after the majority of bonds issued before the financial crisis reached their maturity dates; however, CMBS spreads stayed fairly stable because investor demand for yield remained strong.
In aggregate, the Fund also benefited modestly from our interest rate strategy. Throughout the reporting period, we positioned the Fund defensively to limit its sensitivity to rising rates with a duration between 0.10 and 0.40 years shorter than the benchmark. The short end of the Treasury yield curve repriced meaningfully higher over the reporting period; therefore, the Fund’s short duration stance relative to its benchmark had a positive impact on performance. On the other hand, our yield curve positioning did not have a noticeable effect on performance.
Throughout the reporting period, we continued to focus our efforts on generating income by maintaining the Fund’s overweight to the non-government sectors of the bond market. However, we did reduce the Fund’s overweight to credit, trimming approximately 5-6% from investment grade and high yield corporates combined, based on the continued strength in the two sectors. Strong global demand and modest supply helped the credit sector reach spreads not seen since before the financial crisis. In the investment grade segment, the robust technical backdrop of inflows coupled with stable corporate balance sheets allowed us to capture some of the year-to-date performance, while still maintaining a healthy overweight to credit. Additionally, we wanted to prepare for a large and active supply calendar during the first few months of 2018, while remaining cognizant of the risk that spreads are more likely to widen than to continue to grind tighter. Given the Fed’s expected tightening path, we favor financials as well as higher quality securities over lower rated securities. We ended the reporting period with approximately 38% of the portfolio allocated to investment grade credit and 3% to high yield credit.
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We slightly increased the Fund’s weightings in the securitized sectors to 45% during the reporting period, incrementally increasing exposure to high quality ABS and agency CMBS. Both sectors provided opportunities for us to upgrade portfolio quality, while still offering incremental yield. In the CMBS market, we expect fundamentals to slow on the margin in 2018. With properties at lofty valuations, we will target segments that are fundamentally sound, while offering an attractive risk/return profile. The non-agency MBS sector provides attractive, short duration yields, while residential housing continues to provide a positive fundamental backdrop for the segment.
Short-term interest rates moved meaningfully higher during the reporting period after the Fed hiked for the third time in 2017. Given the positive momentum in economic growth throughout the reporting period, we believed it was prudent to maintain the Fund’s defensive duration strategy. However, given the magnitude of the increase in short-term rates, we covered a portion of the Fund’s short duration position relative to the benchmark. We targeted a portfolio duration that was around 1.5 to 1.8 years during the reporting period.
In addition, we used U.S. Treasury note futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. These derivative positions had a negative impact on performance during the reporting period.
Nuveen Strategic Income Fund
The Fund’s Class A Shares at net asset value (NAV) outperformed the Bloomberg Barclays Aggregate Bond Index, but underperformed the Lipper Multi-Sector Income Funds Classification Average for the six-month reporting period. Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the reporting period, before moving higher into year-end, responding to developments surrounding Fed policy and U.S. tax reform. In moves well-communicated with markets in advance, the Federal Reserve (Fed) began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period as they’ve done all year, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December 2017, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty. The U.S. Treasury yield curve flattened dramatically with the 30-year Treasury yield closing slightly lower during the reporting period, while the two-year Treasury yield increased 50 basis points, reaching its highest level of the reporting period. Catalysts for the curve flattening included stronger economic data, the Fed’s rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds.
Investment grade bonds enjoyed a fairly strong period as corporate earnings remained strong, overall credit fundamentals were constructive and technicals were supportive due to demand from overseas investors searching for higher yields. Corporates posted an uptick in gross leverage to a level marginally higher than pre-crisis in 2008-2009, although because of high cash levels, net leverage remained consistent with a late expansion. Credit spreads continued to contract and ended the reporting period at their tightest levels since 2007. Corporate bond issuance remained elevated with several industries taking advantage of tight spreads and low rates to fund merger and acquisition activity and share buybacks. Globally, credit also performed well with European corporates keeping pace with U.S. credit and emerging market (EM) credit outperforming developed market (DM) credit.
High yield credit continued to benefit from the tailwinds of accelerating global growth and a reflationary macro backdrop, which drove double-digit earnings growth in 2017, along with low levels of market volatility. Funding and refinancing conditions also remained largely supportive of the segment throughout the reporting period, resulting in a high level of refinancing activity that helped to extend the current credit cycle. Therefore, high yield spreads versus Treasuries still managed to grind tighter, broaching the lows reached in mid-2014, despite continued rate hikes, the Fed’s balance sheet runoff announcement and the worst year for high yield mutual fund flows in the post-crisis period.
In the securitized sectors, range-bound rates and relatively low levels of volatility provided a solid backdrop for mortgage-backed securities (MBS). In October, the Fed began its quantitative tightening by reducing its monthly reinvestments in MBS by $4 billion per month. However, the runoff was easily absorbed by banks, real estate investments trusts (REITs) and foreign buyers because overall MBS supply declined due to seasonal factors in the housing market. The asset-backed securities (ABS) sector recovered
NUVEEN | 15 |
Portfolio Managers’ Comments (continued)
following the summer’s devastating hurricanes because losses were lighter than initially feared. Buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for ABS. The commercial mortgage-backed securities (CMBS) sector outperformed Treasuries, although heavier-than-normal issuance late in the reporting period caused the segment to lag corporates.
EM debt capped a year of strong relative and absolute performance supported by the risk-on, low volatility market environment and continued robust investor inflows. Broad strength in both EM and DM economies and higher commodity prices outweighed potential concerns from continued policy normalization and balance sheet reduction from the Fed and other central banks. Although some geopolitical risks remained, they failed to drive any broadly negative impact on the markets. Latin America and Africa outperformed given these regions’ higher yields and significant spread tightening in higher risk countries during the reporting period. Local EM markets benefited from a constructive global backdrop, although several markets saw big moves based on country-specific political factors, including South Africa, Mexico and Turkey. EM currencies generally benefited from the weaker dollar and low volatility.
Global interest rates remained largely range bound during the reporting period and exhibited relatively low volatility, finishing the reporting period with modest returns. Robust economic data, combined with continued low inflation, supported risk while keeping a lid on interest rates. As widely expected, the European Central Bank extended its quantitative easing until late 2018. However, Canada increased interest rates twice, removing cuts from 2015 made in response to the oil collapse, while the Bank of England raised rates in November 2017 for the first time in a decade. With this backdrop, yield curves flattened significantly and developed markets generally outperformed the U.S. The dollar was pressured lower during the six-month reporting period by a combination of factors including relative interest rate policy, strong growth outside the U.S., capital flows and policy uncertainty, including trade relations.
The Fund’s performance benefited from its yield advantage versus the benchmark and broad overweight to non-government sectors. We continued to maintain a large underweight in Treasuries, given our constructive economic view and the relatively unattractive duration and yield profile of that sector.
The largest driver of outperformance versus the benchmark during the reporting period was the Fund’s positioning in investment grade corporates, both through an overweight and from issue selection. In particular, the Fund’s overweight to BBB rated credits proved rewarding because lower quality issues led in excess returns, driven by favorable economic conditions and strong demand for yield from investors. The portfolio’s overweight to preferred and contingent capital (CoCo) securities was also a substantial driver of outperformance. These securities performed well during the reporting period due to strong bank fundamentals, attractive valuations, limited supply, strong demand and low interest rate volatility.
A reduced weight in high yield, along with hedges in the sector, resulted in a small net impact on performance from the sector. Although our high yield portfolio outperformed Treasuries, it did not outperform other spread sectors, given our hedging. Additionally, the Fund’s exposures to securitized sectors, including CMBS and ABS, had minimal impact on performance during this reporting period, but did contribute to portfolio income.
Foreign bond exposure benefited returns because selected markets performed well, even though our positioning in the Fund was relatively light in this area. Currency positioning had virtually no impact on performance because of our currency hedging activities.
Our overall interest rate positioning had a marginally negative impact on performance. An overweight position on the yield curve to intermediate maturities detracted more than the gains from the Fund’s slightly defensive duration stance, which lessened its sensitivity to rising short-term rates.
Our strategy during the reporting period remained biased toward income generation through diversified holdings, while continuing to look for opportunities to reduce risk in areas where risk premiums had tightened meaningfully, reducing forward-looking attractiveness. Economic and corporate fundamentals remained firm and continued robust investor demand drove further spread tightening in corporates. In November 2017, we reduced the Fund’s weight in investment grade corporates through sales and reductions in positions that had met or exceeded our valuation targets. Much of our activity during the reporting period was focused on managing company specific exposures based on our research views, fundamental developments and valuation changes. Within credit, we maintained the Fund’s significant overweight to financials, including positions in preferred securities and CoCos, given
16 | NUVEEN |
attractive valuations and strong fundamentals in the segment. Proceeds from corporate sales were largely reinvested in MBS, reducing the Fund’s large underweight in the segment, while providing additional liquidity and increasing our flexibility to take advantage of market opportunities likely to arise in 2018.
We increased the Fund’s weights in the CMBS and ABS segments as sources of attractive diversified, high quality income. We continued to implement our bottom-up focused approach to finding opportunities in the securitized asset classes, as well as in select foreign markets. However, with U.S. rates high relative to global peers and rising idiosyncratic risk in some markets, global bond positioning is at the low end of the Fund’s range. As mentioned, we also continued to maintain the Fund’s significant underweight in Treasuries.
Interest rate positioning was marginally defensive for most of the reporting period, but we made adjustments based on valuations and risk management. At the end of the reporting period, the Fund’s duration remained moderately shorter than the benchmark index, given our bias for higher yields in 2018. Although the potential for volatility continues, particularly associated with central bank balance sheet and policy transition, we expect the current rate cycle to be drawn out and the upside move in rates to be contained by macro factors. As a result, we do not believe that an aggressive positioning in interest rates is a beneficial strategy from a risk/reward perspective at this time.
During the reporting period, we also continued to use various derivative instruments. We used foreign currency exchange forward contracts to manage the Fund’s foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from the Fund’s portfolio, or may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation. These positions had a negligible impact on performance during the reporting period.
We used U.S. Treasury futures and Eurodollar futures as part of an overall portfolio construction strategy to manage portfolio duration and yield curve exposure and selected foreign bond futures to actively manage exposure to those markets. These positions had a positive impact on performance during the reporting period.
In addition, we entered into credit default swaps as a way to assume and take on credit risk and earn credit spread. The effect of these activities on performance was negative during the reporting period.
The Fund also purchased a small amount of call options on futures during the period. The call options had a negligible impact on performance and these positions were terminated prior to the end of the reporting period.
NUVEEN | 17 |
and Dividend Information
Risk Considerations
Nuveen Core Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity, and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen Core Plus Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Nuveen High Income Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, income risk, and other investment company risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards.
Nuveen Inflation Protected Securities Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, income risk, and index methodology risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. The guarantee provided by the U.S. government to treasury inflation protected securities (TIPS) relates only to the prompt payment of principal and interest and does not remove the market risks of investing in the Fund shares. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk, and adverse economic developments. The Fund’s investment in inflation protected securities has tax consequences that may result in income distributions to shareholders.
Nuveen Short Term Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
18 | NUVEEN |
Nuveen Strategic Income Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The Fund gains additional exposure to currency rates, and therefore to the risk of currency fluctuation, through investment in foreign currency contracts. The risks of foreign investments are magnified in emerging markets. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Dividend Information
Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
As of December 31, 2017, Nuveen High Income Bond Fund and Nuveen Inflation Protected Securities Fund had positive UNII balances while the other Funds in this report had zero UNII balances, based upon our best estimate, for tax purposes. Nuveen High Income Bond Fund and Nuveen Inflation Protected Securities Fund had positive UNII balances, while the other Funds in this report had negative UNII balances for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of a Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report’s Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
Special Dividend Information for Nuveen Core Plus Bond Fund and Nuveen Strategic Income Fund
Like the other Funds in this report, Nuveen Core Plus Bond Fund and Nuveen Strategic Income Fund seek to pay regular monthly distributions at a level rate that reflects past and projected net income of the Funds. Because these two Funds invest substantially in non-U.S. debt and fixed-income securities, in certain periods they can experience foreign currency exchange losses on those non-U.S. holdings. These Funds account for any such foreign currency losses (or gains) as capital items for financial reporting purposes, which do not impact the Funds’ net income and therefore are not taken into account in setting and paying monthly income dividends. However, under applicable tax rules, foreign currency exchange gains or losses are treated as income items. Consequently, if a Fund experiences a foreign currency exchange loss in a given fiscal period, that loss would offset and reduce net income. If such a circumstance were to occur for an entire calendar year the aggregate amount of the Fund’s distributions could exceed the amount of its net income for tax purposes, resulting in any over-distribution being reported on the Fund’s Form 1099 as a return of capital. For the 6-month fiscal period ended December 31, 2017, both of these Funds experienced significant amounts of realized foreign exchange losses, and if such losses are not offset with foreign exchange gains during the remaining six months of a Funds’ fiscal year, a portion of the Fund’s dividends will be characterized as a return of capital for tax purposes at fiscal year-end.
NUVEEN | 19 |
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20 | 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 | 21 |
Fund Performance and Expense Ratios (continued)
Nuveen Core Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 1.28% | 3.64% | 1.55% | 3.55% | ||||||||||||
Class A Shares at maximum Offering Price | (1.74)% | 0.51% | 0.93% | 3.24% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.24% | 3.54% | 2.10% | 4.01% | ||||||||||||
Lipper Core Bond Classification Average | 1.13% | 3.56% | 1.95% | 3.83% | ||||||||||||
Class I Shares | 1.41% | 3.91% | 1.78% | 3.76% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | 0.91% | 2.88% | 0.78% | 1.77% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 1.40% | 4.01% | 1.36% |
Since inception return for Class C Shares is from 1/18/11. Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 3.00% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||
Class A | Class C | Class R6 | Class I | |||||||||||||
Gross Expense Ratios | 0.93% | 1.68% | 0.61% | 0.68% | ||||||||||||
Net Expense Ratios | 0.78% | 1.53% | 0.46% | 0.53% |
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 0.53% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
22 | NUVEEN |
Fund Performance and Expense Ratios (continued)
Nuveen Core Plus Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 1.53% | 4.81% | 2.57% | 4.38% | ||||||||||||
Class A Shares at maximum Offering Price | (2.79)% | 0.38% | 1.68% | 3.93% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.24% | 3.54% | 2.10% | 4.01% | ||||||||||||
Lipper Core Bond Plus Classification Average | 1.34% | 4.39% | 2.46% | 4.57% | ||||||||||||
Class C Shares | 1.15% | 4.04% | 1.78% | 3.59% | ||||||||||||
Class R3 Shares | 1.41% | 4.56% | 2.33% | 4.15% | ||||||||||||
Class I Shares | 1.73% | 5.17% | 2.83% | 4.64% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 1.64% | 5.06% | 2.71% |
Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.89% | 1.64% | 1.14% | 0.57% | 0.64% | |||||||||||||||
Net Expense Ratios | 0.77% | 1.52% | 1.02% | 0.45% | 0.52% |
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 0.52% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
NUVEEN | 23 |
Fund Performance and Expense Ratios (continued)
Nuveen High Income Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 3.20% | 7.30% | 4.43% | 6.61% | ||||||||||||
Class A Shares at maximum Offering Price | (1.72)% | 2.16% | 3.42% | 6.09% | ||||||||||||
Bloomberg Barclays High Yield 2% Issuer Capped Index | 2.46% | 7.50% | 5.78% | 8.09% | ||||||||||||
Lipper High Current Yield Funds Classification Average | 2.33% | 6.58% | 4.63% | 6.43% | ||||||||||||
Class C Shares | 2.81% | 6.50% | 3.65% | 5.86% | ||||||||||||
Class R3 Shares | 3.18% | 7.01% | 4.17% | 6.37% | ||||||||||||
Class I Shares | 3.44% | 7.52% | 4.71% | 6.91% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class T Shares* | 3.32% | 2.73% | ||||||
Class T Shares at maximum Offering Price* | 0.74% | 0.19% |
Since inception return for Class T Shares is from 5/31/17. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. 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. Class T Shares have a maximum 2.50% sales charge (Offering Price).
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class I | Class T* | ||||||||||||||||
Expense Ratios | 1.07% | 1.82% | 1.32% | 0.82% | 1.07% |
* | Class T Shares are not available for public offering. |
24 | NUVEEN |
Fund Performance and Expense Ratios (continued)
Nuveen Inflation Protected Securities Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 1.94% | 2.84% | (0.31)% | 3.19% | ||||||||||||
Class A Shares at maximum Offering Price | (2.40)% | (1.57)% | (1.17)% | 2.75% | ||||||||||||
Bloomberg Barclays U.S. TIPS Index | 2.14% | 3.01% | 0.13% | 3.53% | ||||||||||||
Lipper Inflation-Protected Bond Funds Classification Average | 1.78% | 2.47% | (0.27)% | 2.65% | ||||||||||||
Class C Shares | 1.50% | 2.07% | (0.98)% | 2.48% | ||||||||||||
Class R3 Shares | 1.73% | 2.52% | (0.57)% | 2.86% | ||||||||||||
Class I Shares | 1.97% | 3.08% | 0.01% | 3.49% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 2.14% | 3.34% | 1.20% |
Since inception return for Class R6 Shares is from 1/20/15. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.96% | 1.71% | 1.21% | 0.48% | 0.71% | |||||||||||||||
Net Expense Ratios | 0.78% | 1.53% | 1.03% | 0.30% | 0.53% |
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 0.56% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
NUVEEN | 25 |
Fund Performance and Expense Ratios (continued)
Nuveen Short Term Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 0.28% | 1.29% | 1.16% | 2.19% | ||||||||||||
Class A Shares at maximum Offering Price | (2.00)% | (1.03)% | 0.70% | 1.96% | ||||||||||||
Bloomberg Barclays 1-3 Year Government/Credit Bond Index | 0.13% | 0.84% | 0.84% | 1.85% | ||||||||||||
Lipper Short Investment Grade Debt Funds Classification Average | 0.49% | 1.68% | 1.04% | 2.04% | ||||||||||||
Class I Shares | 0.41% | 1.53% | 1.42% | 2.41% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | (0.01)% | 0.59% | 0.43% | 1.05% | ||||||||||||
Class R3 Shares | 0.23% | 1.08% | 0.89% | 1.50% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 0.51% | 1.63% | 1.49% |
Since inception return for Class C, Class R3 and Class R6 Shares are from 10/28/09, 9/22/11 and 1/20/15, respectively. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 2.25% sales charge (Offering Price). Class A Share purchases of $250,000 or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.77% | 1.52% | 1.02% | 0.48% | 0.52% | |||||||||||||||
Net Expense Ratios | 0.72% | 1.47% | 0.97% | 0.42% | 0.47% |
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 0.47% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
26 | NUVEEN |
Fund Performance and Expense Ratios (continued)
Nuveen Strategic Income Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 1.79% | 5.16% | 3.30% | 5.77% | ||||||||||||
Class A Shares at maximum Offering Price | (2.51)% | 0.69% | 2.41% | 5.31% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.24% | 3.54% | 2.10% | 4.01% | ||||||||||||
Lipper Multi-Sector Income Funds Classification Average | 2.25% | 6.09% | 3.32% | 5.16% | ||||||||||||
Class C Shares | 1.40% | 4.36% | 2.53% | 4.96% | ||||||||||||
Class R3 Shares | 1.67% | 4.91% | 3.06% | 5.46% | ||||||||||||
Class I Shares | 1.90% | 5.50% | 3.56% | 6.01% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 1.90% | 5.49% | 3.35% |
Cumulative | ||||||||
6-Month | Since Inception | |||||||
Class T Shares* | 1.79% | 2.02% | ||||||
Class T Shares at maximum Offering Price* | (0.73)% | (0.49)% |
Since inception return for Class R6 Shares is from 1/20/15. Since inception return for Class T shares is from 5/31/17. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.25% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 total returns. 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. Class T Shares have a maximum 2.50% sales change (Offering Price).
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | Class T* | |||||||||||||||||||
Gross Expense Ratios | 0.93% | 1.68% | 1.18% | 0.60% | 0.68% | 0.93% | ||||||||||||||||||
Net Expense Ratios | 0.83% | 1.58% | 1.08% | 0.51% | 0.58% | 0.83% |
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 0.59% of the average daily net assets of any class of Fund shares. However, because Class R6 shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 shares will be less than the expense limitation. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
* | Class T Shares are not available for public offering. |
NUVEEN | 27 |
Yields as of December 31, 2017
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. Refer to the Notes to Financial Statements, Note 7 – Management Fees and Other Transactions with Affiliates for further details on the investment adviser’s most recent agreement with the Fund to waive fees and/or reimburse expenses, where applicable. Dividend Yield may differ from the SEC 30-Day Yield because the fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
Nuveen Core Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R6 | Class I | |||||||||||||
Dividend Yield | 2.20% | 1.60% | 2.58% | 2.59% | ||||||||||||
SEC 30-Day Yield-Subsidized | 2.25% | 1.63% | 2.65% | 2.64% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.14% | 1.46% | 2.52% | 2.45% |
Nuveen Core Plus Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 2.89% | 2.41% | 2.92% | 3.38% | 3.38% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 2.37% | 1.83% | 2.33% | 2.87% | 2.83% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.36% | 1.72% | 2.21% | 2.78% | 2.72% |
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class I | Class T1 | ||||||||||||||||
Dividend Yield | 6.22% | 6.10% | 6.57% | 7.07% | 6.67% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 6.90% | 6.86% | 7.36% | 7.86% | 7.22% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 6.90% | 6.83% | 7.33% | 7.82% | 7.22% |
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 0.99% | 0.33% | 0.82% | 1.33% | 1.34% | |||||||||||||||
SEC 30-Day Yield-Subsidized | (0.51)% | (1.29)% | (0.80)% | (0.08)% | (0.31)% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | (0.72)% | (1.49)% | (1.00)% | (0.25)% | (0.50)% |
28 | NUVEEN |
Nuveen Short Term Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 1.52% | 0.79% | 1.28% | 1.83% | 1.83% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 1.75% | 1.09% | 1.58% | 2.11% | 2.08% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 1.72% | 1.02% | 1.52% | 2.06% | 2.01% |
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | Class T1 | |||||||||||||||||||
Dividend Yield | 3.57% | 3.07% | 3.61% | 4.06% | 4.07% | 3.75% | ||||||||||||||||||
SEC 30-Day Yield-Subsidized | 2.70% | 2.20% | 2.69% | 3.29% | 3.19% | 2.75% | ||||||||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.70% | 2.10% | 2.59% | 3.17% | 3.09% | 2.75% |
1 | The SEC Yield for Class A Shares and Class T Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
NUVEEN | 29 |
Summaries as of December 31, 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
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Nuveen Core Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 45.4% | |||
Asset-Backed and Mortgage-Backed Securities | 45.1% | |||
U.S. Government and Agency Obligations | 8.3% | |||
$1,000 Par (or similar) | 0.5% | |||
Investments Purchased with | 0.7% | |||
Money Market Funds | 1.4% | |||
Other Assets Less Liabilities | (1.4)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Banks | 14.0% | |||
Capital Markets | 11.7% | |||
Insurance | 9.4% | |||
Media | 5.6% | |||
Equity Real Estate Investment Trusts | 5.0% | |||
Oil, Gas & Consumable Fuels | 4.4% | |||
Food & Staples Retailing | 3.6% | |||
Diversified Telecommunication Services | 3.4% | |||
Diversified Financial Services | 3.2% | |||
Health Care Providers & Services | 3.0% | |||
Beverages | 3.0% | |||
Biotechnology | 2.9% | |||
Specialty Retail | 2.5% | |||
Machinery | 2.4% | |||
Pharmaceuticals | 2.3% | |||
Semiconductors & Semiconductor Equipment | 2.3% | |||
Consumer Finance | 1.7% | |||
Other | 19.6% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 33.2% | |||
AAA | 14.4% | |||
AA | 5.7% | |||
A | 26.0% | |||
BBB | 20.7% | |||
Total | 100% |
30 | NUVEEN |
Nuveen Core Plus Bond Fund
Fund Allocation
(% of net assets)
Asset-Backed and Mortgage-Backed Securities | 44.4% | |||
Corporate Bonds | 39.4% | |||
$1,000 Par (or similar) | 5.5% | |||
U.S. Government and Agency Obligations | 5.3% | |||
Contingent Capital Securities | 1.8% | |||
Sovereign Debt | 1.6% | |||
Municipal Bonds | 0.2% | |||
Investments Purchased with Collateral from Securities Lending | 0.6% | |||
Money Market Funds | 9.0% | |||
Other Assets Less Liabilities | (7.8)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Banks | 19.2% | |||
Capital Markets | 12.5% | |||
Oil, Gas & Consumable Fuels | 6.7% | |||
Insurance | 6.3% | |||
Diversified Telecommunication Services | 4.1% | |||
Equity Real Estate Investment Trusts | 4.0% | |||
Specialty Retail | 3.4% | |||
Media | 3.4% | |||
Diversified Financial Services | 3.2% | |||
Aerospace & Defense | 3.1% | |||
Food Products | 2.9% | |||
Consumer Finance | 2.4% | |||
Industrial Conglomerates | 2.3% | |||
Chemicals | 2.2% | |||
Wireless Telecommunication Services | 2.1% | |||
Machinery | 2.0% | |||
Airlines | 1.9% | |||
Other | 18.3% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 31.2% | |||
AAA | 12.8% | |||
AA | 1.6% | |||
A | 24.7% | |||
BBB | 24.9% | |||
BB or Lower | 4.8% | |||
Total | 100% |
NUVEEN | 31 |
Holding Summaries as of December 31, 2017 (continued)
Nuveen High Income Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 81.3% | |||
$1,000 Par (or similar) | 2.6% | |||
Contingent Capital Securities | 2.8% | |||
Variable Rate Senior Loan | 2.7% | |||
Common Stocks | 1.9% | |||
Investment Companies | 1.9% | |||
$25 Par (or similar) Retail | 1.8% | |||
Convertible Preferred Securities | 0.6% | |||
Warrants | 0.0% | |||
Convertible Bonds | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 9.3% | |||
Money Market Funds | 3.4% | |||
Other Assets Less Liabilities | (8.3)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Oil, Gas & Consumable Fuels | 15.7% | |||
Metals & Mining | 8.8% | |||
Media | 7.6% | |||
Diversified Telecommunication Services | 6.7% | |||
Wireless Telecommunication Services | 4.6% | |||
Hotels, Restaurants & Leisure | 4.2% | |||
Chemicals | 4.0% | |||
Food & Staples Retailing | 3.1% | |||
Diversified Financial Services | 3.1% | |||
Commercial Services & Supplies | 2.6% | |||
Specialty Retail | 2.4% | |||
Real Estate Management & Development | 2.3% | |||
Internet Software & Services | 2.2% | |||
Household Durables | 2.0% | |||
Aerospace & Defense | 2.0% | |||
Energy Equipment & Services | 2.0% | |||
Independent Power & Renewable Electricity Producers | 1.8% | |||
Health Care Providers & Services | 1.8% | |||
Consumer Finance | 1.6% | |||
Equity Real Estate Investment Trusts | 1.6% | |||
Other | 19.9% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
BBB | 2.9% | |||
BB or Lower | 91.4% | |||
N/R (not rated) | 5.7% | |||
Total | 100% |
32 | NUVEEN |
Nuveen Inflation Protected Securities Fund
Fund Allocation
(% of net assets)
U.S. Government and Agency | 86.8% | |||
Asset-Backed and Mortgage-Backed Securities | 8.3% | |||
Corporate Bonds | 2.5% | |||
Sovereign Debt | 0.5% | |||
Municipal Bonds | 0.3% | |||
Convertible Preferred Securities | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 0.3% | |||
Money Market Funds | 1.3% | |||
Other Assets Less Liabilities | 0.0% | |||
Net Assets | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 88.2% | |||
AAA | 3.6% | |||
AA | 0.6% | |||
A | 0.1% | |||
BBB | 5.7% | |||
BB or Lower | 1.3% | |||
N/R (not rated) | 0.5% | |||
Total | 100% |
NUVEEN | 33 |
Holding Summaries as of December 31, 2017 (continued)
Nuveen Short Term Bond Fund
Fund Allocation
(% of net assets)
Asset-Backed and Mortgage-Backed Securities | 46.4% | |||
Corporate Bonds | 40.9% | |||
U.S. Government and Agency Obligations | 9.1% | |||
Municipal Bonds | 0.2% | |||
Investments Purchased with Collateral from Securities Lending | 1.5% | |||
Money Market Funds | 0.2% | |||
Other Assets Less Liabilities | 1.7% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Banks | 22.8% | |||
Capital Markets | 8.2% | |||
Insurance | 6.5% | |||
Oil, Gas & Consumable Fuels | 5.7% | |||
Diversified Telecommunication Services | 4.9% | |||
Consumer Finance | 4.4% | |||
Media | 4.0% | |||
Wireless Telecommunication Services | 3.8% | |||
Food & Staples Retailing | 3.6% | |||
Tobacco | 3.1% | |||
Food Products | 3.0% | |||
Chemicals | 2.6% | |||
Health Care Providers & Services | 2.2% | |||
Industrial Conglomerates | 1.9% | |||
Automobiles | 1.9% | |||
Biotechnology | 1.7% | |||
Other | 19.7% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term investments)
U.S. Treasury/Agency | 14.9% | |||
AAA | 25.7% | |||
AA | 7.6% | |||
A | 25.3% | |||
BBB | 21.2% | |||
BB or Lower | 2.8% | |||
N/R (not rated) | 2.5% | |||
Total | 100% |
34 | NUVEEN |
Nuveen Strategic Income Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 50.2% | |||
Asset-Backed and Mortgage-Backed Securities | 28.6% | |||
$1,000 Par (or similar) Institutional Preferred | 6.7% | |||
Contingent Capital Securities | 4.9% | |||
Sovereign Debt | 4.0% | |||
U.S. Government and Agency Obligations | 2.8% | |||
Variable Rate Senior Loan Interests | 0.7% | |||
$25 Par (or similar) Retail Preferred | 0.3% | |||
Municipal Bonds | 0.2% | |||
Common Stocks | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 2.3% | |||
Money Market Funds | 9.7% | |||
Other Assets Less Liabilities | (10.4)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Banks | 18.0% | |||
Capital Markets | 11.5% | |||
Oil, Gas & Consumable Fuels | 6.7% | |||
Insurance | 5.5% | |||
Diversified Telecommunication Services | 5.3% | |||
Media | 3.4% | |||
Consumer Finance | 3.3% | |||
Chemicals | 2.8% | |||
Beverages | 2.8% | |||
Aerospace & Defense | 2.6% | |||
Wireless Telecommunication Services | 2.5% | |||
Industrial Conglomerates | 2.3% | |||
Metals & Mining | 2.2% | |||
Diversified Financial Services | 2.2% | |||
Specialty Retail | 2.1% | |||
Airlines | 1.9% | |||
Household Durables | 1.7% | |||
Equity Real Estate Investment Trusts | 1.7% | |||
Energy Equipment & Services | 1.5% | |||
Food & Staples Retailing | 1.5% | |||
Other | 18.5% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
U.S. Treasury/Agency | 16.6% | |||
AAA | 11.1% | |||
AA | 0.6% | |||
A | 26.4% | |||
BBB | 29.4% | |||
BB or Lower | 15.7% | |||
N/R (not rated) | 0.2% | |||
Total | 100% |
NUVEEN | 35 |
Examples
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended December 31, 2017.
The beginning of the period for the funds is July 1, 2017.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Core Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R6 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,012.80 | $ | 1,009.10 | $ | 1,014.00 | $ | 1,014.10 | ||||||||
Expenses Incurred During the Period | $ | 3.96 | $ | 7.75 | $ | 2.34 | $ | 2.69 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,021.27 | $ | 1,017.49 | $ | 1,022.89 | $ | 1,022.53 | ||||||||
Expenses Incurred During the Period | $ | 3.97 | $ | 7.78 | $ | 2.35 | $ | 2.70 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.78%, 1.53%, 0.46% and 0.53% for Classes A, C, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
36 | NUVEEN |
Nuveen Core Plus Bond Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,015.30 | $ | 1,011.50 | $ | 1,014.10 | $ | 1,016.40 | $ | 1,017.30 | ||||||||||
Expenses Incurred During the Period | $ | 3.91 | $ | 7.71 | $ | 5.18 | $ | 2.34 | $ | 2.64 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.32 | $ | 1,017.54 | $ | 1,020.06 | $ | 1,022.89 | $ | 1,022.58 | ||||||||||
Expenses Incurred During the Period | $ | 3.92 | $ | 7.73 | $ | 5.19 | $ | 2.35 | $ | 2.65 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.77%, 1.52%, 1.02%, 0.46% and 0.52% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||||||
A Shares | C Shares | R3 Shares | I Shares | T Shares* | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,032.00 | $ | 1,028.10 | $ | 1,031.80 | $ | 1,034.40 | $ | 1,033.20 | ||||||||||
Expenses Incurred During the Period | $ | 5.12 | $ | 8.95 | $ | 6.40 | $ | 3.85 | $ | 5.12 | ||||||||||
Hypothetical Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,020.16 | $ | 1,016.38 | $ | 1,018.90 | $ | 1,021.42 | $ | 1,020.16 | ||||||||||
Expenses Incurred During the Period | $ | 5.09 | $ | 8.89 | $ | 6.36 | $ | 3.82 | $ | 5.09 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.00%, 1.75%, 1.25%, 0.75% and 1.00% for Classes A, C, R3, I, and T respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
* | Class T Shares are not available for public offering. |
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,019.40 | $ | 1,015.00 | $ | 1,017.30 | $ | 1,021.40 | $ | 1,019.70 | ||||||||||
Expenses Incurred During the Period | $ | 3.97 | $ | 7.77 | $ | 5.24 | $ | 1.43 | $ | 2.70 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.27 | $ | 1,017.49 | $ | 1,020.01 | $ | 1,023.79 | $ | 1,022.53 | ||||||||||
Expenses Incurred During the Period | $ | 3.97 | $ | 7.78 | $ | 5.24 | $ | 1.43 | $ | 2.70 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.78%, 1.53%, 1.03%, 0.28% and 0.53% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
NUVEEN | 37 |
Expense Examples (continued)
Nuveen Short Term Bond Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,002.80 | $ | 999.90 | $ | 1,002.30 | $ | 1,005.10 | $ | 1,004.10 | ||||||||||
Expenses Incurred During the Period | $ | 3.63 | $ | 7.41 | $ | 4.90 | $ | 2.12 | $ | 2.37 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,021.58 | $ | 1,017.80 | $ | 1,020.32 | $ | 1,023.09 | $ | 1,022.84 | ||||||||||
Expenses Incurred During the Period | $ | 3.67 | $ | 7.48 | $ | 4.94 | $ | 2.14 | $ | 2.40 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.72%, 1.47%, 0.97%, 0.42% and 0.47% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||||||
A Shares | C Shares | R3 Shares | R6 Shares | I Shares | T Shares* | |||||||||||||||||||
Actual Performance | ||||||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||
Ending Account Value | $ | 1,017.90 | $ | 1,014.00 | $ | 1,016.70 | $ | 1,019.00 | $ | 1,019.00 | $ | 1,017.90 | ||||||||||||
Expenses Incurred During the Period | $ | 4.22 | $ | 8.02 | $ | 5.49 | $ | 2.54 | $ | 2.95 | $ | 4.22 | ||||||||||||
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 | $ | 1,000.00 | ||||||||||||
Ending Account Value | $ | 1,021.02 | $ | 1,017.24 | $ | 1,019.76 | $ | 1,022.68 | $ | 1,022.28 | $ | 1,021.02 | ||||||||||||
Expenses Incurred During the Period | $ | 4.23 | $ | 8.03 | $ | 5.50 | $ | 2.55 | $ | 2.96 | $ | 4.23 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.83%, 1.58%, 1.08%, 0.50%, 0.58% and 0.83% for Classes A, C, R3, R6, I, and T respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
* | Class T Shares are not available for public offering. |
38 | NUVEEN |
Nuveen Core Bond Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.3% | ||||||||||||||||||||
CORPORATE BONDS – 45.4% | ||||||||||||||||||||
Airlines – 0.3% | ||||||||||||||||||||
$ | 366 | American Airlines Inc., Pass Through Trust 2016-1A | 3.575% | 1/15/28 | AA+ | $ | 372,995 | |||||||||||||
Auto Components – 0.3% | ||||||||||||||||||||
355 | Lear Corporation | 5.375% | 3/15/24 | BBB– | 375,484 | |||||||||||||||
Automobiles – 0.6% | ||||||||||||||||||||
750 | General Motors Corporation | 4.000% | 4/01/25 | BBB | 770,033 | |||||||||||||||
Banks – 6.3% | ||||||||||||||||||||
157 | Bank of America Corporation | 4.000% | 4/01/24 | A | 165,935 | |||||||||||||||
490 | Bank of America Corporation | 3.875% | 8/01/25 | A | 516,741 | |||||||||||||||
1,000 | Bank of America Corporation | 4.450% | 3/03/26 | A– | 1,067,135 | |||||||||||||||
140 | Bank of America Corporation, 144A | 3.419% | 12/20/28 | A | 139,987 | |||||||||||||||
460 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 459,180 | |||||||||||||||
645 | Citigroup Inc. | 4.500% | 1/14/22 | A | 686,049 | |||||||||||||||
650 | Citigroup Inc. | 3.300% | 4/27/25 | A | 655,905 | |||||||||||||||
365 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 381,585 | |||||||||||||||
807 | Fifth Third Bancorp. | 3.500% | 3/15/22 | A– | 830,700 | |||||||||||||||
400 | ING Groep N.V | 3.950% | 3/29/27 | A+ | 416,891 | |||||||||||||||
505 | JP Morgan Chase & Company | 3.200% | 1/25/23 | A+ | 515,027 | |||||||||||||||
695 | JP Morgan Chase & Company | 3.875% | 9/10/24 | A | 724,814 | |||||||||||||||
700 | JP Morgan Chase & Company | 4.260% | 2/22/48 | A+ | 756,923 | |||||||||||||||
810 | Santander UK PLC | 2.125% | 11/03/20 | Aa3 | 803,426 | |||||||||||||||
570 | SunTrust Banks Inc. | 2.450% | 8/01/22 | A– | 561,973 | |||||||||||||||
8,394 | Total Banks | 8,682,271 | ||||||||||||||||||
Beverages – 1.3% | ||||||||||||||||||||
1,395 | Anheuser Busch InBev Financial Incorporated, Fixed Rate Note, Series 2016 | 3.650% | 2/01/26 | A– | 1,439,249 | |||||||||||||||
420 | Dr. Pepper Snapple Group Inc. | 2.550% | 9/15/26 | BBB+ | 398,042 | |||||||||||||||
1,815 | Total Beverages | 1,837,291 | ||||||||||||||||||
Biotechnology – 1.3% | ||||||||||||||||||||
500 | Baxalta, Inc. | 4.000% | 6/23/25 | BBB– | 516,670 | |||||||||||||||
630 | Biogen Inc. | 3.625% | 9/15/22 | A– | 652,815 | |||||||||||||||
595 | Celgene Corporation, Convertible Notes | 3.625% | 5/15/24 | BBB+ | 611,800 | |||||||||||||||
1,725 | Total Biotechnology | 1,781,285 |
NUVEEN | 39 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Capital Markets – 5.3% | ||||||||||||||||||||
$ | 665 | Charles Schwab Corporation | 3.000% | 3/10/25 | A | $ | 662,640 | |||||||||||||
1,280 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 1,419,145 | |||||||||||||||
800 | Goldman Sachs Group, Inc. | 6.750% | 10/01/37 | A– | 1,070,192 | |||||||||||||||
460 | Lazard Group LLC | 3.625% | 3/01/27 | A– | 458,918 | |||||||||||||||
1,740 | Morgan Stanley | 4.000% | 7/23/25 | A | 1,821,432 | |||||||||||||||
685 | Morgan Stanley | 3.950% | 4/23/27 | A– | 695,406 | |||||||||||||||
1,105 | State Street Corporation | 3.300% | 12/16/24 | AA– | 1,141,071 | |||||||||||||||
6,735 | Total Capital Markets | 7,268,804 | ||||||||||||||||||
Chemicals – 0.8% | ||||||||||||||||||||
500 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 502,200 | |||||||||||||||
550 | LYB International Finance BV | 4.000% | 7/15/23 | BBB+ | 575,645 | |||||||||||||||
1,050 | Total Chemicals | 1,077,845 | ||||||||||||||||||
Commercial Services & Supplies – 0.3% | ||||||||||||||||||||
430 | AerCap Ireland Capital Limited / AerCap Global Aviation Trust | 3.950% | 2/01/22 | BBB– | 443,128 | |||||||||||||||
Consumer Finance – 0.8% | ||||||||||||||||||||
490 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 494,766 | |||||||||||||||
545 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 586,548 | |||||||||||||||
1,035 | Total Consumer Finance | 1,081,314 | ||||||||||||||||||
Containers & Packaging – 0.4% | ||||||||||||||||||||
480 | Packaging Corporation of America | 3.650% | 9/15/24 | BBB | 492,071 | |||||||||||||||
Diversified Financial Services – 1.4% | ||||||||||||||||||||
525 | BNP Paribas, 144A | 4.375% | 5/12/26 | A | 548,832 | |||||||||||||||
365 | Jefferies Group Inc. | 4.850% | 1/15/27 | BBB– | 387,940 | |||||||||||||||
995 | Rabobank Nederland | 3.875% | 2/08/22 | Aa2 | 1,045,012 | |||||||||||||||
1,885 | Total Diversified Financial Services | 1,981,784 | ||||||||||||||||||
Diversified Telecommunication Services – 1.5% | ||||||||||||||||||||
360 | AT&T, Inc. | 3.800% | 3/15/22 | A– | 372,010 | |||||||||||||||
685 | AT&T, Inc. | 3.400% | 8/14/24 | A– | 688,366 | |||||||||||||||
365 | AT&T, Inc. | 4.750% | 5/15/46 | A– | 356,682 | |||||||||||||||
750 | Verizon Communications | 4.125% | 8/15/46 | A– | 692,229 | |||||||||||||||
2,160 | Total Diversified Telecommunication Services | 2,109,287 | ||||||||||||||||||
Energy Equipment & Services – 0.4% | ||||||||||||||||||||
565 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 568,362 | |||||||||||||||
Equity Real Estate Investment Trusts – 2.3% | ||||||||||||||||||||
635 | American Tower Company | 5.000% | 2/15/24 | BBB | 695,423 | |||||||||||||||
380 | Crown Castle International Corporation | 3.700% | 6/15/26 | BBB– | 379,641 | |||||||||||||||
2,020 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 2,019,059 | |||||||||||||||
3,035 | Total Equity Real Estate Investment Trusts | 3,094,123 |
40 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Food & Staples Retailing – 1.6% | ||||||||||||||||||||
$ | 930 | CVS Health Corporation | 3.875% | 7/20/25 | BBB+ | $ | 957,555 | |||||||||||||
730 | Sysco Corporation | 3.750% | 10/01/25 | A3 | 758,883 | |||||||||||||||
515 | Walgreen Company | 3.100% | 9/15/22 | BBB | 516,990 | |||||||||||||||
2,175 | Total Food & Staples Retailing | 2,233,428 | ||||||||||||||||||
Food Products – 0.4% | ||||||||||||||||||||
500 | Bunge Limited Finance Company | 3.250% | 8/15/26 | BBB | 477,704 | |||||||||||||||
Health Care Providers & Services – 1.4% | ||||||||||||||||||||
630 | Anthem, Inc. | 3.125% | 5/15/22 | A | 635,487 | |||||||||||||||
1,215 | UnitedHealth Group Incorporated | 2.875% | 3/15/22 | A+ | 1,229,820 | |||||||||||||||
1,845 | Total Health Care Providers & Services | 1,865,307 | ||||||||||||||||||
Household Durables – 0.4% | ||||||||||||||||||||
545 | Newell Brands Inc. | 4.200% | 4/01/26 | BBB– | 569,061 | |||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
635 | GE Capital International Funding CO | 4.418% | 11/15/35 | A+ | 686,753 | |||||||||||||||
Insurance – 4.3% | ||||||||||||||||||||
131 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 179,396 | |||||||||||||||
620 | American International Group, Inc. | 3.750% | 7/10/25 | BBB+ | 639,086 | |||||||||||||||
990 | Berkshire Hathaway Inc. | 3.125% | 3/15/26 | AA | 1,000,941 | |||||||||||||||
375 | CNA Financial Corporation | 3.450% | 8/15/27 | BBB+ | 369,436 | |||||||||||||||
750 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 782,815 | |||||||||||||||
600 | MetLife Inc. | 3.000% | 3/01/25 | A– | 600,406 | |||||||||||||||
940 | Prudential Financial Inc. | 3.500% | 5/15/24 | A | 976,159 | |||||||||||||||
465 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 472,022 | |||||||||||||||
435 | Unum Group | 4.000% | 3/15/24 | BBB | 452,890 | |||||||||||||||
365 | Willis North America, Inc. | 3.600% | 5/15/24 | BBB | 370,982 | |||||||||||||||
5,671 | Total Insurance | 5,844,133 | ||||||||||||||||||
Internet and Direct Marketing Retail – 0.4% | ||||||||||||||||||||
560 | Amazon.com Incorporated | 3.800% | 12/05/24 | AA– | 591,321 | |||||||||||||||
Internet Software & Services – 0.5% | ||||||||||||||||||||
655 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 679,870 | |||||||||||||||
IT Services – 0.7% | ||||||||||||||||||||
955 | Visa Inc. | 3.150% | 12/14/25 | A+ | 976,049 | |||||||||||||||
Leisure Products – 0.8% | ||||||||||||||||||||
1,025 | Hyatt Hotels Corporation | 3.375% | 7/15/23 | BBB | 1,047,222 | |||||||||||||||
Machinery – 1.1% | ||||||||||||||||||||
830 | Ingersoll-Rand Luxembourg Finance SA | 3.550% | 11/01/24 | BBB | 857,297 |
NUVEEN | 41 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Machinery (continued) | ||||||||||||||||||||
$ | 640 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | $ | 633,769 | |||||||||||||
1,470 | Total Machinery | 1,491,066 | ||||||||||||||||||
Media – 2.5% | ||||||||||||||||||||
605 | 21st Century Fox America Inc. | 4.000% | 10/01/23 | BBB+ | 632,536 | |||||||||||||||
510 | CBS Corporation | 4.900% | 8/15/44 | BBB | 535,544 | |||||||||||||||
885 | Comcast Corporation | 6.400% | 4/30/40 | A– | 1,195,124 | |||||||||||||||
435 | Cox Communications Inc., 144A | 3.350% | 9/15/26 | BBB+ | 424,985 | |||||||||||||||
660 | Discovery Communications Inc. | 3.800% | 3/13/24 | BBB– | 669,398 | |||||||||||||||
3,095 | Total Media | 3,457,587 | ||||||||||||||||||
Metals & Mining – 0.4% | ||||||||||||||||||||
495 | Nucor Corporation | 4.000% | 8/01/23 | A– | 518,231 | |||||||||||||||
Oil, Gas & Consumable Fuels – 2.0% | ||||||||||||||||||||
335 | BP Capital Markets PLC | 2.520% | 9/19/22 | A1 | 333,290 | |||||||||||||||
550 | EOG Resources Inc. | 4.100% | 2/01/21 | BBB+ | 573,421 | |||||||||||||||
340 | Occidental Petroleum Corporation | 3.400% | 4/15/26 | A | 348,110 | |||||||||||||||
270 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 303,264 | |||||||||||||||
590 | Spectra Energy Partners LP | 4.750% | 3/15/24 | BBB+ | 641,312 | |||||||||||||||
540 | Valero Energy Corporation | 3.400% | 9/15/26 | BBB | 542,050 | |||||||||||||||
2,625 | Total Oil, Gas & Consumable Fuels | 2,741,447 | ||||||||||||||||||
Pharmaceuticals – 1.1% | ||||||||||||||||||||
995 | Merck & Company Inc. | 2.750% | 2/10/25 | AA | 990,738 | |||||||||||||||
550 | Teva Pharmaceutical Finance III, (3) | 3.150% | 10/01/26 | BBB– | 453,982 | |||||||||||||||
1,545 | Total Pharmaceuticals | 1,444,720 | ||||||||||||||||||
Road & Rail – 0.7% | ||||||||||||||||||||
895 | Burlington Northern Santa Fe, LLC | 3.400% | 9/01/24 | A | 926,818 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 1.0% | ||||||||||||||||||||
740 | Applied Materials Inc. | 4.300% | 6/15/21 | A– | 784,706 | |||||||||||||||
630 | Intel Corporation | 3.150% | 5/11/27 | A+ | 642,298 | |||||||||||||||
1,370 | Total Semiconductors & Semiconductor Equipment | 1,427,004 | ||||||||||||||||||
Specialty Retail – 1.1% | ||||||||||||||||||||
520 | Home Depot, Inc. | 2.625% | 6/01/22 | A | 522,837 | |||||||||||||||
455 | Lowes Companies, Inc. | 3.100% | 5/03/27 | A– | 456,476 | |||||||||||||||
525 | Swiss Re Treasury US Corporation, 144A | 4.250% | 12/06/42 | AA– | 545,441 | |||||||||||||||
1,500 | Total Specialty Retail | 1,524,754 | ||||||||||||||||||
Tobacco – 0.4% | ||||||||||||||||||||
520 | Reynolds American Inc. | 3.250% | 11/01/22 | BBB+ | 526,970 |
42 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||||||||||||
$ | 510 | Rogers Communications Inc. | 3.625% | 12/15/25 | BBB+ | $ | 520,768 | |||||||||||||
525 | Telefonica Emisiones SAU | 4.103% | 3/08/27 | BBB | 542,330 | |||||||||||||||
1,035 | Total Wireless Telecommunication Services | 1,063,098 | ||||||||||||||||||
$ | 59,896 | Total Corporate Bonds (cost $60,305,855) | 62,028,620 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES – 45.1% | ||||||||||||||||||||
$ | 866 | American Homes 4 Rent, Series 2014-SFR2, 144A | 3.786% | 10/17/36 | Aaa | $ | 899,963 | |||||||||||||
500 | American Homes 4 Rent, Series 2015-SFR2, 144A | 5.036% | 10/17/45 | Baa2 | 538,474 | |||||||||||||||
600 | AmeriCold LLC Trust, Series 2010, 144A | 6.031% | 1/14/29 | AA | 645,841 | |||||||||||||||
1,061 | Atlantic City Electric Transition Funding LLC, Transition Bonds, Series 2002-1 | 5.550% | 10/20/23 | AAA | 1,128,578 | |||||||||||||||
260 | Bank of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.366% | 9/15/48 | A– | 268,549 | |||||||||||||||
165 | Bank of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | 135,183 | |||||||||||||||
700 | CarNow Auto Receivables Trust 2017-1A, 144A | 2.920% | 9/15/22 | A | 699,720 | |||||||||||||||
810 | CitiBank Credit Card Issuance Trust, Series 2017-A8 | 1.860% | 8/08/22 | AAA | 802,309 | |||||||||||||||
1,000 | Citigroup Commercial Mortgage Trust Series 2012-GC8 | 3.024% | 9/10/45 | Aaa | 1,013,694 | |||||||||||||||
725 | Cold Storage Trust, Commercial Mortgage Backed Securities, Series 2017-ICE3, 144A, (1-Month LIBOR reference rate + 1.000% spread), (4) | 2.559% | 4/15/36 | AAA | 726,796 | |||||||||||||||
1,667 | Colony American Homes Trust 2014-1A, 144A, (1-Month LIBOR reference rate + 1.150% spread), (4) | 2.709% | 5/17/31 | Aaa | 1,671,329 | |||||||||||||||
625 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.493% | 10/10/48 | A– | 606,820 | |||||||||||||||
500 | Conns Receivables Funding Trust II, Series 2017-B, 144A | 2.730% | 7/15/20 | BBB | 499,979 | |||||||||||||||
455 | Countrywide Asset-Backed Securities Inc., Asset-Backed Certificates Series 2003-BC3, (1-Month LIBOR reference rate + 0.620% spread), (4) | 2.181% | 9/25/33 | A | 445,171 | |||||||||||||||
370 | DB Master Finance LLC, Series 2015-1A, 144A | 3.980% | 2/20/45 | BBB | 377,203 | |||||||||||||||
400 | Exeter Auto Receivables Trust, Series 2013-2A, 144A | 6.810% | 8/17/20 | AA | 403,879 | |||||||||||||||
200 | Fannie Mae Grantor Trust, Series 2014-T1 | 2.898% | 6/25/27 | N/R | 198,510 | |||||||||||||||
569 | Fannie Mae Mortgage Pool FN 725205 | 5.000% | 3/01/34 | N/R | 616,160 | |||||||||||||||
884 | Fannie Mae Mortgage Pool FN 960605 | 5.000% | 8/01/37 | N/R | 960,650 | |||||||||||||||
1,093 | Fannie Mae Mortgage Pool FN AD1593 | 4.500% | 2/01/40 | N/R | 1,169,454 | |||||||||||||||
1,447 | Fannie Mae Mortgage Pool FN AE0217 | 4.500% | 8/01/40 | N/R | 1,548,797 | |||||||||||||||
1,088 | Fannie Mae Mortgage Pool FN 890310 | 4.500% | 12/01/40 | N/R | 1,166,287 | |||||||||||||||
1,696 | Fannie Mae Mortgage Pool FN AB2085 | 4.000% | 1/01/41 | N/R | 1,782,504 | |||||||||||||||
649 | Fannie Mae Mortgage Pool FN AH3804 | 4.000% | 2/01/41 | N/R | 681,800 | |||||||||||||||
1,743 | Fannie Mae Mortgage Pool FN AH5575 | 4.000% | 2/01/41 | | N/R | | 1,831,363 | |||||||||||||
1,381 | Fannie Mae Mortgage Pool FN AE0981 | 3.500% | 3/01/41 | N/R | 1,427,098 | |||||||||||||||
1,558 | Fannie Mae Mortgage Pool FN AL0215 | 4.500% | 4/01/41 | | N/R | | 1,670,752 | |||||||||||||
1,404 | Fannie Mae Mortgage Pool FN AH8954 | 4.000% | 4/01/41 | N/R | 1,475,116 |
NUVEEN | 43 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 818 | Fannie Mae Mortgage Pool FN AL0160 | 4.500% | 5/01/41 | N/R | $ | 876,857 | |||||||||||||
1,277 | Fannie Mae Mortgage Pool FN MA1028 | 4.000% | 4/01/42 | | N/R | | 1,341,531 | |||||||||||||
2,479 | Fannie Mae Mortgage Pool FN AB9659 | 3.000% | 6/01/43 | N/R | 2,497,377 | |||||||||||||||
1,126 | Fannie Mae Mortgage Pool FN AU3353 | 3.000% | 8/01/43 | N/R | 1,132,498 | |||||||||||||||
1,561 | Fannie Mae Mortgage Pool FN AY3376 | 3.500% | 4/01/45 | N/R | 1,603,951 | |||||||||||||||
1,402 | Fannie Mae Mortgage Pool FN AS6398 | 3.500% | 12/01/45 | N/R | 1,440,999 | |||||||||||||||
793 | Fannie Mae Mortgage Pool FN BC0830 | 3.000% | 4/01/46 | N/R | 793,806 | |||||||||||||||
1,567 | Fannie Mae Mortgage Pool FN BH7626 | 4.000% | 8/01/47 | N/R | 1,641,632 | |||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-89 K | 6.500% | 7/25/20 | N/R | 1,464 | |||||||||||||||
1,150 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 3.000% | TBA | N/R | | 1,148,658 | | |||||||||||||
2 | Federal Home Loan Mortgage Corporation, REMIC R 1167 E | 7.500% | 11/15/21 | N/R | 2,183 | |||||||||||||||
4 | Federal Home Loan Mortgage Corporation, REMIC R 1286 A | 6.000% | 5/15/22 | N/R | 4,146 | |||||||||||||||
533 | Flagstar Mortgage Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 538,997 | |||||||||||||||
618 | Freddie Mac Gold Pool FG G05852 | 5.500% | 3/01/39 | N/R | 679,325 | |||||||||||||||
490 | Freddie Mac Mortgage Trust, Structured Pass-Through Certificates, Series 2011 K-10 | 3.500% | 1/01/46 | N/R | 504,001 | |||||||||||||||
1,715 | Freddie Mac MultiFamily Structured Pass-Through Certificates FHMS K053 | 2.995% | 12/25/25 | Aaa | 1,741,745 | |||||||||||||||
777 | Ginnie Mae Mortgage Pool G2 MA 2521 | 3.500% | 1/20/45 | N/R | 805,414 | |||||||||||||||
534 | GLS Auto Receivables Trust 2017-1A, 144A | 2.670% | 4/15/21 | A | 534,052 | |||||||||||||||
2,139 | Government National Mortgage Association Pool GN AA5391 | 3.500% | 6/15/42 | N/R | 2,220,715 | |||||||||||||||
1,092 | Invitation Homes Trust 2015-SFR3, 144A, (1-Month LIBOR reference rate + 1.300% spread), (4) | 2.859% | 8/17/32 | Aaa | 1,099,090 | |||||||||||||||
339 | Invitation Homes Trust 2017-SFR3, 144A, (1-Month LIBOR reference rate + 0.850% spread), (4) | 2.406% | 12/17/36 | Aaa | 339,666 | |||||||||||||||
949 | JP Morgan Mortgage Trust, Series 2016-A5, 144A | 3.500% | 5/25/46 | Aaa | 962,916 | |||||||||||||||
630 | JP Morgan Mortgage Trust, Series 2017-1, 144A | 3.500% | 1/25/47 | Aaa | 638,952 | |||||||||||||||
155 | Master Resecuritization Trust 2009-1, 144A | 6.000% | 10/25/36 | AA | 156,595 | |||||||||||||||
1,033 | Mercedes-Benz Auto Lease Trust 2017-A | 1.530% | 8/15/19 | AAA | 1,030,989 | |||||||||||||||
750 | New Residential Advance Receivable Trust, Series 2016-T3, 144A | 2.833% | 10/16/51 | AAA | 736,580 | |||||||||||||||
775 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 3.214% | 2/15/51 | AAA | 775,666 | |||||||||||||||
610 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2017-3A, 144A | 4.000% | 4/25/57 | AAA | 627,848 | |||||||||||||||
568 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2017-6A, 144A | 4.000% | 8/27/57 | Aaa | 583,058 | |||||||||||||||
598 | New Residential Mortgage Loan Trust, Series 2017-1A, 144A | 4.000% | 2/25/57 | AAA | 615,967 | |||||||||||||||
950 | OMART Receivables Trust, Series 2016-T1, 144A | 2.521% | 8/17/48 | AAA | 949,808 | |||||||||||||||
650 | OMART Receivables Trust, Series 2017-T1, 144A | 2.499% | 9/15/48 | AAA | 650,483 | |||||||||||||||
415 | OneMain Financial Issuance Trust, Series 2015-2A, 144A | 3.100% | 7/18/25 | BBB+ | 415,036 | |||||||||||||||
749 | Prosper Marketplace Issuance Trust, Series 2017-3A, 144A | 2.360% | 11/15/23 | A– | 749,002 |
44 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 69 | Structured Agency Credit Risk Debt Notes, 2013-DN2, (1-Month LIBOR reference rate + 1.450% spread), (4) | 3.011% | 11/25/23 | Aa1 | $ | 69,501 | |||||||||||||
710 | Synchrony Credit Card Master Note Trust, Series 2017-1 | 1.930% | 6/15/23 | Aaa | 703,317 | |||||||||||||||
745 | TCF Auto Receivables Owner Trust, Series 2016-1A, 144A | 1.710% | 4/15/21 | AAA | 742,554 | |||||||||||||||
535 | Tricon American Homes Trust, Series 2017-SFRI, 144A | 2.716% | 9/17/34 | Aaa | 528,301 | |||||||||||||||
901 | U.S. Small Business Administration Guaranteed Participating Securities, Participation Certificates, Series 2010-P10B | 3.215% | 9/10/20 | | N/R | | 911,955 | |||||||||||||
1,590 | United States Department of Veterans, Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, Series 2011-1 | 3.750% | 2/15/35 | | N/R | | 1,627,993 | |||||||||||||
63 | Walter Investment Management Company Capital Trust, Series 2012-AA, 144A | 4.549% | 10/16/50 | A | 63,255 | |||||||||||||||
628 | Wendy’s Funding LLC, Series 2015-1A, 144A | 4.080% | 6/15/45 | BBB | 642,384 | |||||||||||||||
645 | Wendy’s Funding LLC, Series 2015-1A, 144A | 3.371% | 6/15/45 | BBB | 646,879 | |||||||||||||||
650 | Wendy’s Funding LLC, Series 2018-1A, 144A, (WI/DD) | 3.573% | 3/15/48 | BBB | 649,797 | |||||||||||||||
$ | 60,201 | Total Asset-Backed and Mortgage-Backed Securities (cost $60,916,989) |
| 61,818,922 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 8.3% | ||||||||||||||||||||
$ | 60 | Federal Home Loan Mortgage Corporation, Notes | 1.750% | 5/30/19 | Aaa | $ | 59,907 | |||||||||||||
2,055 | Freddie Mac Reference Notes | 5.000% | 12/14/18 | Aa2 | 2,116,406 | |||||||||||||||
1,390 | United States of America Treasury Bonds | 2.250% | 8/15/46 | Aaa | 1,252,422 | |||||||||||||||
1,890 | United States of America Treasury Bonds | 2.750% | 8/15/47 | Aaa | 1,890,238 | |||||||||||||||
1,650 | United States of America Treasury Bonds, (3) | 2.750% | 11/15/47 | Aaa | 1,650,850 | |||||||||||||||
4,235 | United States Treasury Notes | 2.875% | 11/15/46 | Aaa | 4,339,534 | |||||||||||||||
$ | 11,280 | Total U.S. Government and Agency Obligations (cost $10,878,399) |
| 11,309,357 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 0.5% |
| |||||||||||||||||||
Banks – 0.5% | ||||||||||||||||||||
$ | 700 | Wachovia Capital Trust III, (3-Month LIBOR reference rate + 0.930% spread), (4) | 5.570% | N/A (5) | BBB | $ | 705,250 | |||||||||||||
$ | 700 | Total $1,000 Par (or similar) Institutional Preferred (cost $621,577) | 705,250 | |||||||||||||||||
Total Long-Term Investments (cost $132,722,820) |
| 135,862,149 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.7% |
| |||||||||||||||||||
Money Market Funds – 0.7% | ||||||||||||||||||||
1,008,625 | First American Government Obligations Fund, Class X, (6) | 1.196% (7) | $ | 1,008,625 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,008,625) |
| 1,008,625 |
NUVEEN | 45 |
Nuveen Core Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 1.4% | ||||||||||||||||||||
Money Market Funds – 1.4% | ||||||||||||||||||||
1,981,954 | First American Treasury Obligations Fund, Class Z | 1.181% (7) | $ | 1,981,954 | ||||||||||||||||
Total Short-Term Investments (cost $1,981,954) | 1,981,954 | |||||||||||||||||||
Total Investments (cost $135,713,399) – 101.4% | 138,852,728 | |||||||||||||||||||
Other Assets Less Liabilities – (1.4)% (8) | (1,850,269) | |||||||||||||||||||
Net Assets – 100% | $ | 137,002,459 |
Investments in Derivatives
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||
U.S. Treasury 2-Year Note | Long | 17 | 3/18 | $ | 3,646,548 | $ | 3,639,859 | $ | (6,689 | ) | $ | 1,063 | ||||||||||||||
U.S. Treasury 5-Year Note | Short | (15 | ) | 3/18 | (1,745,003 | ) | (1,742,461 | ) | 2,542 | (1,406 | ) | |||||||||||||||
U.S. Treasury 10-Year Note | Short | (68 | ) | 3/18 | (8,477,255 | ) | (8,435,187 | ) | 42,068 | (13,813 | ) | |||||||||||||||
U.S. Treasury Long Bond | Short | (9 | ) | 3/18 | (1,364,718 | ) | (1,377,000 | ) | (12,282 | ) | (2,531 | ) | ||||||||||||||
U.S. Treasury Ultra 10-Year Note | Short | (52 | ) | 3/18 | (6,955,498 | ) | (6,945,250 | ) | 10,248 | (14,625 | ) | |||||||||||||||
U.S. Treasury Ultra Bond | Long | 45 | 3/18 | 7,497,537 | 7,544,531 | 46,994 | 19,651 | |||||||||||||||||||
Total | $ | (7,398,389 | ) | $ | (7,315,508 | ) | $ | 82,881 | $ | (11,661 | ) | |||||||||||||||
Total receivable for variation margin on futures contracts | $ | 20,714 | ||||||||||||||||||||||||
Total payable for variation margin on futures contracts | $ | (32,375 | ) |
* | The aggregate notional amount of long and short positions is $11,144,085 and $(18,542,474), respectively. |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $982,630. |
(4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(5) | Perpetual security. Maturity date is not applicable. |
(6) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(7) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
LIBOR | London Inter-Bank Offered Rate |
TBA | To be announced. Maturity date not known prior to the settlement of this transaction. |
WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
46 | NUVEEN |
Nuveen Core Plus Bond Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 98.2% | ||||||||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES – 44.4% | ||||||||||||||||||||
$ | 2,420 | Ally Auto Receivables Trust, Series 2017-3 | 2.010% | 3/15/22 | AAA | $ | 2,403,077 | |||||||||||||
2,590 | American Express Credit Card Master Trust, Series 2017-1 | 1.930% | 9/15/22 | Aaa | 2,577,629 | |||||||||||||||
1,543 | American Homes 4 Rent, Series 2014-SFR2, 144A | 3.786% | 10/17/36 | Aaa | 1,603,212 | |||||||||||||||
3,165 | AmeriCold LLC Trust, Series 2010, 144A | 6.811% | 1/14/29 | A+ | 3,456,159 | |||||||||||||||
2,165 | Bank 2017, Mortgage Series BNK4 | 3.625% | 5/15/50 | Aaa | 2,250,554 | |||||||||||||||
540 | Bank of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.366% | 9/15/48 | A– | 557,755 | |||||||||||||||
345 | Bank of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | 282,655 | |||||||||||||||
2,500 | Bank of America Credit Card Trust, Series 2017-A1 | 1.950% | 8/15/22 | Aaa | 2,488,404 | |||||||||||||||
104 | Bank of America Funding Trust, Mortgage Pass-Through Certificates, Series 2007-4 | 5.500% | 6/25/37 | C | 13,912 | |||||||||||||||
1,100 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP, 144A | 4.284% | 9/10/28 | BBB– | 1,107,622 | |||||||||||||||
842 | Bayview Financial Mortgage Pass-Through Trust, Mortgage Pass-Through Certificate Series 2005-D | 5.500% | 12/28/35 | A+ | 844,328 | |||||||||||||||
3,010 | capital One Multi-Asset Execution Trust, Series 2016-A4 | 1.330% | 6/15/22 | AAA | 2,972,619 | |||||||||||||||
2,342 | CitiBank Credit Card Issuance Trust, Series 2014-A1 | 2.880% | 1/23/23 | Aaa | 2,383,865 | |||||||||||||||
2,360 | Citibank Credit Card Issuance Trust, Series 2014-A6 | 2.150% | 7/15/21 | Aaa | 2,362,435 | |||||||||||||||
2,040 | CitiBank Credit Card Issuance Trust, Series 2017-A8 | 1.860% | 8/08/22 | AAA | 2,020,629 | |||||||||||||||
1,785 | Commercial Mortgage Pass-Through Certificates 2015-CR22 | 4.122% | 3/10/48 | A– | 1,772,756 | |||||||||||||||
1,485 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.493% | 10/10/48 | A– | 1,441,805 | |||||||||||||||
1,795 | Commercial Mortgage Pass-Through Certificates, Series 2016-SAVA, 144A, (1-Month LIBOR reference rate + 2.300% spread), (3) | 3.854% | 10/15/34 | AA– | 1,799,445 | |||||||||||||||
1,844 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-8 | 6.148% | 4/25/33 | Ba1 | 1,832,551 | |||||||||||||||
1,556 | DB Master Finance LLC, Series 2015-1A, 144A | 3.980% | 2/20/45 | BBB | 1,588,225 | |||||||||||||||
1,165 | Discover Card Execution Note Trust 2012-A6 | 1.670% | 1/18/22 | AAA | 1,158,403 | |||||||||||||||
930 | Discover Card Execution Trust 2015-A2 | 1.900% | 10/17/22 | AAA | 924,348 | |||||||||||||||
1,485 | Discover Card Execution Trust 2017-A2 | 2.390% | 7/15/24 | AAA | 1,484,590 | |||||||||||||||
1,741 | Dominos Pizza Master Issuer LLC, Series 2017-1A, 144A | 3.082% | 7/25/47 | BBB+ | 1,721,525 | |||||||||||||||
232 | Fannie Mae Mortgage Pool FN 254413 | 6.000% | 10/01/22 | N/R | 259,558 | |||||||||||||||
693 | Fannie Mae Mortgage Pool FN 255575 | 5.500% | 1/01/25 | N/R | 759,143 | |||||||||||||||
53 | Fannie Mae Mortgage Pool FN340798 | 7.000% | 4/01/26 | N/R | 56,787 | |||||||||||||||
44 | Fannie Mae Mortgage Pool FN 250551 | 7.000% | 5/01/26 | N/R | 48,482 | |||||||||||||||
471 | Fannie Mae Mortgage Pool FN 256852 | 6.000% | 8/01/27 | N/R | 525,981 | |||||||||||||||
203 | Fannie Mae Mortgage Pool FN 252255 | 6.500% | 2/01/29 | N/R | 227,676 |
NUVEEN | 47 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 370 | Fannie Mae Mortgage Pool FN 254169 | 6.500% | 12/01/31 | | N/R | | $ | 412,276 | |||||||||||
459 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | N/R | 505,505 | |||||||||||||||
396 | Fannie Mae Mortgage Pool FN 254379 | 7.000% | 7/01/32 | | N/R | | 451,438 | |||||||||||||
149 | Fannie Mae Mortgage Pool FN 545813 | 7.000% | 7/01/32 | N/R | 168,510 | |||||||||||||||
90 | Fannie Mae Mortgage Pool FN 545815 | 7.000% | 7/01/32 | N/R | 104,271 | |||||||||||||||
657 | Fannie Mae Mortgage Pool FN 688330 | 6.000% | 3/01/33 | N/R | 745,258 | |||||||||||||||
503 | Fannie Mae Mortgage Pool FN 555798 | 6.500% | 5/01/33 | N/R | 565,883 | |||||||||||||||
1,337 | Fannie Mae Mortgage Pool FN 709446 | 5.500% | 7/01/33 | N/R | 1,491,256 | |||||||||||||||
968 | Fannie Mae Mortgage Pool FN 735273 | 6.500% | 6/01/34 | N/R | 1,093,737 | |||||||||||||||
118 | Fannie Mae Mortgage Pool FN 781776 | 6.000% | 10/01/34 | N/R | 133,298 | |||||||||||||||
326 | Fannie Mae Mortgage Pool FN 885536 | 6.000% | 8/01/36 | N/R | 371,094 | |||||||||||||||
399 | Fannie Mae Mortgage Pool FN 900555 | 6.000% | 9/01/36 | N/R | 456,332 | |||||||||||||||
119 | Fannie Mae Mortgage Pool FN 256845 | 6.500% | 8/01/37 | N/R | 134,609 | |||||||||||||||
100 | Fannie Mae Mortgage Pool FN 256890 | 6.000% | 9/01/37 | N/R | 104,112 | |||||||||||||||
— | (4) | Fannie Mae Mortgage Pool FN 983077 | 5.000% | 5/01/38 | N/R | 140 | ||||||||||||||
— | (4) | Fannie Mae Mortgage Pool FN 985344 | 5.500% | 7/01/38 | N/R | 91 | ||||||||||||||
1,644 | Fannie Mae Mortgage Pool FN AC1877 | 4.500% | 9/01/39 | N/R | 1,757,701 | |||||||||||||||
1,404 | Fannie Mae Mortgage Pool FN 932323 | 4.500% | 12/01/39 | N/R | 1,499,905 | |||||||||||||||
1,595 | Fannie Mae Mortgage Pool FN AD4375 | 5.000% | 5/01/40 | N/R | 1,718,660 | |||||||||||||||
2,982 | Fannie Mae Mortgage Pool FN AE7265 | 4.000% | 1/01/41 | N/R | 3,126,043 | |||||||||||||||
753 | Fannie Mae Mortgage Pool FN MA1028 | 4.000% | 4/01/42 | N/R | 791,355 | |||||||||||||||
2,760 | Fannie Mae Mortgage Pool FN AT2722 | 3.000% | 5/01/43 | N/R | 2,775,220 | |||||||||||||||
1,658 | Fannie Mae Mortgage Pool FN AS3907 | 4.000% | 11/01/44 | N/R | 1,736,930 | |||||||||||||||
1,599 | Fannie Mae Mortgage Pool FN MA2484 | 4.000% | 12/01/45 | N/R | 1,673,569 | |||||||||||||||
3,602 | Fannie Mae Mortgage Pool FN AS6386 | 3.000% | 12/01/45 | N/R | 3,604,828 | |||||||||||||||
2,090 | Fannie Mae Mortgage Pool FN AS6652 | 3.500% | 2/01/46 | N/R | 2,148,020 | |||||||||||||||
2,274 | Fannie Mae Mortgage Pool FN AS6880 | 3.500% | 3/01/46 | N/R | 2,337,678 | |||||||||||||||
3,373 | Fannie Mae Mortgage Pool FN AS7544 | 3.500% | 7/01/46 | N/R | 3,466,892 | |||||||||||||||
6,210 | Fannie Mae Mortgage Pool FN MA2808 | 4.000% | 11/01/46 | N/R | 6,501,040 | |||||||||||||||
3,398 | Fannie Mae Mortgage Pool FN MA3058 | 4.000% | 7/01/47 | N/R | 3,558,119 | |||||||||||||||
3,828 | Fannie Mae Mortgage Pool FN BC0823 | 3.500% | 4/01/46 | N/R | 3,934,879 | |||||||||||||||
— | (4) | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1988-24 G | 7.000% | 10/25/18 | N/R | 375 | ||||||||||||||
— | (4) | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1989-44 H | 9.000% | 7/25/19 | N/R | 425 | ||||||||||||||
— | (4) | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1989-90 E | 8.700% | 12/25/19 | N/R | 409 | ||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-30 E | 6.500% | 3/25/20 | | N/R | | 868 |
48 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 3 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-61 H | 7.000% | 6/25/20 | N/R | $ | 3,021 | |||||||||||||
3 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-72 B | 9.000% | 7/25/20 | N/R | 2,861 | |||||||||||||||
4 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-102 J | 6.500% | 8/25/20 | N/R | 4,464 | |||||||||||||||
29 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1990-105 J | 6.500% | 9/25/20 | N/R | 29,840 | |||||||||||||||
10 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1991-56 M | 6.750% | 6/25/21 | N/R | 10,621 | |||||||||||||||
21 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1991-134 Z | 7.000% | 10/25/21 | N/R | 22,002 | |||||||||||||||
2 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1992-120 C | 6.500% | 7/25/22 | N/R | 2,041 | |||||||||||||||
113 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 1996-35 Z | 7.000% | 7/25/26 | N/R | 124,776 | |||||||||||||||
738 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates R 2005-62 JE | 5.000% | 6/25/35 | N/R | 769,453 | |||||||||||||||
698 | Fannie Mae REMIC Pass-Through Certificates W 2003-W1 B1 | 3.724% | 12/25/42 | CCC | 304,871 | |||||||||||||||
1,395 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 4.500% | TBA | N/R | 1,482,397 | |||||||||||||||
6,435 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 4.000% | TBA | N/R | 6,723,891 | |||||||||||||||
11,810 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 3.500% | TBA | N/R | 12,113,037 | |||||||||||||||
7,360 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 3.000% | TBA | N/R | 7,351,409 | |||||||||||||||
1,000 | Fannie Mae TBA, Mortgage Pool, (WI/DD) | 5.000% | TBA | N/R | 1,074,375 | |||||||||||||||
— | (4) | Federal Home Loan Mortgage Corporation, REMIC R 6 C | 9.050% | 6/15/19 | N/R | 15 | ||||||||||||||
3 | Federal Home Loan Mortgage Corporation, REMIC R 1022 J | 6.000% | 12/15/20 | N/R | 2,556 | |||||||||||||||
4 | Federal Home Loan Mortgage Corporation, REMIC R 162 F | 7.000% | 5/15/21 | N/R | 3,632 | |||||||||||||||
4 | Federal Home Loan Mortgage Corporation, REMIC R 1118 Z | 8.250% | 7/15/21 | N/R | 4,146 | |||||||||||||||
18 | Federal Home Loan Mortgage Corporation, REMIC R 188 H | 7.000% | 9/15/21 | N/R | 18,918 | |||||||||||||||
3 | Federal Home Loan Mortgage Corporation, REMIC R 1790 A | 7.000% | 4/15/22 | N/R | 2,781 | |||||||||||||||
1,815 | Fifth Third Auto Trust, Series 2017-1 | 1.800% | 2/15/22 | N/R | 1,801,768 | |||||||||||||||
8,932 | Freddie Mac Gold Mortgage Pool, (WI/DD) | 3.500% | 11/01/47 | N/R | 9,191,063 | |||||||||||||||
3 | Freddie Mac Mortgage Pool, Various FG P10023 | 4.500% | 3/01/18 | N/R | 2,795 | |||||||||||||||
31 | Freddie Mac Mortgage Pool, Various FG P10032 | 4.500% | 5/01/18 | N/R | 31,372 | |||||||||||||||
210 | Freddie Mac Mortgage Pool, Various FG C00676 | 6.500% | 11/01/28 | N/R | 233,455 | |||||||||||||||
334 | Freddie Mac Mortgage Pool, Various FG A17212 | 6.500% | 7/01/31 | N/R | 370,291 | |||||||||||||||
151 | Freddie Mac Mortgage Pool, Various FG A15521 | 6.000% | 11/01/33 | N/R | 168,968 | |||||||||||||||
84 | Freddie Mac Mortgage Pool, Various FG H09059 | 7.000% | 8/01/37 | N/R | 90,457 | |||||||||||||||
225 | Freddie Mac Multifamily Structured Pass- Through Certificates R 3591 FP, (1-Month LIBOR reference rate + 0.600% spread), (3) | 2.159% | 6/15/39 | N/R | 226,180 | |||||||||||||||
405 | Goldman Sachs Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2005-RP2 1A2, 144A | 7.500% | 3/25/35 | B1 | 436,279 |
NUVEEN | 49 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGED-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 461 | Goldman Sachs Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2005-RP3 1A2, 144A | 7.500% | 9/25/35 | B3 | $ | 486,710 | |||||||||||||
1,175 | Goldman Sachs Mortgage Securities Trust, Mortgage Pass Through Certificates, Series 2015-GC32 | 3.345% | 7/10/48 | BBB– | 971,898 | |||||||||||||||
81 | Government National Mortgage Association Pool GN 537699 | 7.500% | 11/15/30 | N/R | 87,757 | |||||||||||||||
2,133 | Government National Mortgage Association Pool G2 4946 | 4.500% | 2/20/41 | N/R | 2,262,480 | |||||||||||||||
851 | Invitation Homes Trust 2017-SFR3, 144A, (1-Month LIBOR reference rate + 0.850% spread), (3) | 2.406% | 12/17/36 | Aaa | 854,160 | |||||||||||||||
1,910 | JP Morgan Chase Commercial Mortgage Securities Corporation, Pass Through Certificates Trust 2017-MAUI, 144A, (1-Month LIBOR reference rate + 0.830% spread), (3) | 2.383% | 7/15/34 | AAA | 1,911,205 | |||||||||||||||
2,055 | JP Morgan Chase Commercial Mortgage Securities Trust, Pass-Through Certificates 2017-JP5 | 3.723% | 3/15/50 | Aaa | 2,151,499 | |||||||||||||||
233 | Master Resecuritization Trust 2009-1, 144A | 6.000% | 10/25/36 | AA | 234,892 | |||||||||||||||
1,373 | Mid-State Capital Corporation Trust Notes, Series 2005-1 | 5.745% | 1/15/40 | AA | 1,482,158 | |||||||||||||||
1,290 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, 144A | 4.755% | 6/15/47 | BBB– | 1,136,617 | |||||||||||||||
895 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, 144A | 4.241% | 4/15/48 | BBB– | 771,648 | |||||||||||||||
479 | Mortgage Asset Securitization Transaction Inc., Alternative Loan Trust Mortgage Pass-Through Certificates Series 2004-1 | 7.000% | 1/25/34 | BBB– | 488,235 | |||||||||||||||
970 | New Residential Advance Receivable Trust , Series 2016-T1, 144A | 4.377% | 6/15/49 | BBB | 969,927 | |||||||||||||||
1,455 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 4.002% | 2/15/51 | BBB | 1,447,274 | |||||||||||||||
1,506 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2017-6A, 144A | 4.000% | 8/27/57 | Aaa | 1,545,104 | |||||||||||||||
1,915 | OMART Receivables Trust, Series 2016-T2, 144A | 4.446% | 8/16/49 | BBB | 1,866,501 | |||||||||||||||
1,993 | Shellpoint Co-Originator Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 2,043,799 | |||||||||||||||
1,435 | Starwood Waypoint Homes Trust, 2017-1, 144A, (1-Month LIBOR reference rate + 0.950% spread), (3) | 2.506% | 1/17/35 | Aaa | 1,441,565 | |||||||||||||||
864 | Taco Bell Funding LLC, Series 2016-1A, 144A | 4.377% | 5/25/46 | BBB | 891,384 | |||||||||||||||
1,400 | Tricon American Homes Trust, Series 2017-SFRI, 144A | 2.716% | 9/17/34 | Aaa | 1,382,470 | |||||||||||||||
2,411 | United States Department of Veterans, Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, Series 2011-1 | 3.750% | 2/15/35 | N/R | 2,468,037 | |||||||||||||||
1,221 | Wachovia Mortgage Loan Trust LLC, Mortgage Pass-Through Certificates, Series 2005-B | 3.740% | 10/20/35 | D | 1,168,629 | |||||||||||||||
2,650 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-C29 | 3.637% | 6/15/48 | Aaa | 2,753,039 | |||||||||||||||
920 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-C30, 144A | 4.497% | 9/15/58 | BBB– | 826,661 | |||||||||||||||
1,240 | World Omni Auto Receivables Trust, Series 2016-B | 1.300% | 2/15/22 | AAA | 1,227,895 | |||||||||||||||
$ | 162,469 | Total Asset-Backed and Mortgaged-Backed Securities (cost $163,412,921) | 165,772,135 |
50 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 39.4% | ||||||||||||||||||||
Aerospace & Defense – 1.2% | ||||||||||||||||||||
$ | 1,530 | Airbus SE, 144A | 3.150% | 4/10/27 | A+ | $ | 1,534,389 | |||||||||||||
1,295 | BAE Systems Holdings, 144A | 3.850% | 12/15/25 | BBB | 1,342,660 | |||||||||||||||
1,625 | Rockwell Collins Inc. | 3.500% | 3/15/27 | BBB | 1,654,072 | |||||||||||||||
4,450 | Total Aerospace & Defense | 4,531,121 | ||||||||||||||||||
Air Freight & Logistics – 0.3% | ||||||||||||||||||||
1,095 | FedEx Corporation | 3.250% | 4/01/26 | BBB | 1,103,066 | |||||||||||||||
Airlines – 0.7% | ||||||||||||||||||||
1,242 | American Airlines Inc., Pass Through Trust 2016-1A | 3.575% | 1/15/28 | AA+ | 1,264,306 | |||||||||||||||
1,404 | Northwest Airlines Trust Pass Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 1,511,382 | |||||||||||||||
2,646 | Total Airlines | 2,775,688 | ||||||||||||||||||
Banks – 7.6% | ||||||||||||||||||||
1,105 | Banco Santander SA | 3.800% | 2/23/28 | A– | 1,104,815 | |||||||||||||||
792 | Bank of America Corporation | 4.000% | 4/01/24 | A | 837,074 | |||||||||||||||
2,250 | Bank of America Corporation | 4.250% | 10/22/26 | A– | 2,370,487 | |||||||||||||||
2,322 | Bank of America Corporation, 144A | 3.419% | 12/20/28 | A | 2,321,783 | |||||||||||||||
1,815 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 1,811,764 | |||||||||||||||
1,695 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,802,873 | |||||||||||||||
1,000 | Citigroup Inc. | 3.750% | 6/16/24 | A | 1,037,024 | |||||||||||||||
795 | Citigroup Inc. | 3.200% | 10/21/26 | A | 788,568 | |||||||||||||||
2,000 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 2,090,874 | |||||||||||||||
1,080 | HSBC Holdings PLC | 4.375% | 11/23/26 | A+ | 1,127,235 | |||||||||||||||
1,000 | ING Groep N.V | 3.950% | 3/29/27 | A+ | 1,042,229 | |||||||||||||||
1,330 | JP Morgan Chase & Company | 4.500% | 1/24/22 | A+ | 1,423,008 | |||||||||||||||
1,665 | JP Morgan Chase & Company | 3.200% | 1/25/23 | A+ | 1,698,060 | |||||||||||||||
660 | JP Morgan Chase & Company | 3.900% | 7/15/25 | A+ | 691,745 | |||||||||||||||
1,250 | JP Morgan Chase & Company | 4.260% | 2/22/48 | A+ | 1,351,647 | |||||||||||||||
1,095 | Lloyds Banking Group PLC | 3.100% | 7/06/21 | A+ | 1,105,937 | |||||||||||||||
1,135 | PNC Financial Services Inc. | 3.150% | 5/19/27 | A+ | 1,138,550 | |||||||||||||||
1,200 | Royal Bank of Scotland Group PLC | 6.100% | 6/10/23 | BBB | 1,321,207 | |||||||||||||||
1,445 | SunTrust Banks Inc. | 2.450% | 8/01/22 | A– | 1,424,652 | |||||||||||||||
1,680 | Wells Fargo & Company | 4.600% | 4/01/21 | A+ | 1,785,178 | |||||||||||||||
27,314 | Total Banks | 28,274,710 | ||||||||||||||||||
Beverages – 0.7% | ||||||||||||||||||||
1,600 | Anheuser Busch InBev Financial Incorporated, Fixed Rate Note, Series 2016 | 3.650% | 2/01/26 | A– | 1,650,752 | |||||||||||||||
1,085 | Heineken NV, 144A | 3.500% | 1/29/28 | BBB+ | 1,106,587 | |||||||||||||||
2,685 | Total Beverages | 2,757,339 |
NUVEEN | 51 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Building Products – 0.4% | ||||||||||||||||||||
$ | 1,385 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB | $ | 1,452,055 | |||||||||||||
Capital Markets – 4.9% | ||||||||||||||||||||
2,225 | Charles Schwab Corporation | 2.650% | 1/25/23 | A | 2,223,319 | |||||||||||||||
1,665 | Deutsche Bank AG | 4.875% | 12/01/32 | BBB | 1,659,173 | |||||||||||||||
660 | Goldman Sachs Group, Inc. | 5.250% | 7/27/21 | A | 715,230 | |||||||||||||||
3,000 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 3,326,121 | |||||||||||||||
1,910 | Goldman Sachs Group, Inc. | 4.000% | 3/03/24 | A | 2,003,450 | |||||||||||||||
1,655 | Lazard Group LLC | 3.625% | 3/01/27 | A– | 1,651,109 | |||||||||||||||
3,250 | Morgan Stanley | 5.500% | 7/28/21 | A | 3,554,620 | |||||||||||||||
2,010 | Morgan Stanley | 3.950% | 4/23/27 | A– | 2,040,534 | |||||||||||||||
1,140 | Northern Trust Company | 3.950% | 10/30/25 | A+ | 1,207,402 | |||||||||||||||
17,515 | Total Capital Markets | 18,380,958 | ||||||||||||||||||
Chemicals – 0.9% | ||||||||||||||||||||
1,260 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 1,265,543 | |||||||||||||||
450 | Chemours Co | 5.375% | 5/15/27 | BB– | 465,750 | |||||||||||||||
1,425 | LYB International Finance BV | 4.000% | 7/15/23 | BBB+ | 1,491,443 | |||||||||||||||
3,135 | Total Chemicals | 3,222,736 | ||||||||||||||||||
Communications Equipment – 0.3% | ||||||||||||||||||||
1,080 | Qualcomm, Inc. | 2.100% | 5/20/20 | A1 | 1,075,390 | |||||||||||||||
Consumer Finance – 0.9% | ||||||||||||||||||||
1,148 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 1,159,165 | |||||||||||||||
850 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 914,799 | |||||||||||||||
1,425 | Ford Motor Credit Company | 3.810% | 1/09/24 | BBB | 1,454,437 | |||||||||||||||
3,423 | Total Consumer Finance | 3,528,401 | ||||||||||||||||||
Diversified Financial Services – 1.3% | ||||||||||||||||||||
1,720 | BNP Paribas, 144A | 4.375% | 5/12/26 | A | 1,798,077 | |||||||||||||||
935 | Jefferies Group Inc. | 4.850% | 1/15/27 | BBB– | 993,765 | |||||||||||||||
1,880 | Rabobank Nederland | 3.950% | 11/09/22 | A | 1,959,821 | |||||||||||||||
4,535 | Total Diversified Financial Services | 4,751,663 | ||||||||||||||||||
Diversified Telecommunication Services – 1.6% | ||||||||||||||||||||
2,270 | AT&T, Inc. | 3.800% | 3/15/22 | A– | 2,345,732 | |||||||||||||||
800 | AT&T, Inc. | 3.400% | 8/14/24 | A– | 803,931 | |||||||||||||||
830 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 893,717 | |||||||||||||||
800 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB | 794,874 | |||||||||||||||
1,260 | Verizon Communications | 4.125% | 8/15/46 | A– | 1,162,945 | |||||||||||||||
5,960 | Total Diversified Telecommunication Services | 6,001,199 |
52 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Energy Equipment & Services – 0.6% | ||||||||||||||||||||
$ | 1,110 | Baker Hughes a GE Co LLC, 144A | 2.773% | 12/15/22 | A– | $ | 1,108,391 | |||||||||||||
1,070 | Nabors Industries Inc., (5) | 5.500% | 1/15/23 | BB+ | 1,035,225 | |||||||||||||||
2,180 | Total Energy Equipment & Services | 2,143,616 | ||||||||||||||||||
Equity Real Estate Investment Trusts – 1.6% | ||||||||||||||||||||
1,410 | American Tower Company | 5.000% | 2/15/24 | BBB | 1,544,167 | |||||||||||||||
785 | Crown Castle International Corporation | 3.700% | 6/15/26 | BBB– | 784,257 | |||||||||||||||
870 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 905,341 | |||||||||||||||
2,610 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 2,608,784 | |||||||||||||||
5,675 | Total Equity Real Estate Investment Trusts | 5,842,549 | ||||||||||||||||||
Food & Staples Retailing – 0.3% | ||||||||||||||||||||
1,225 | Sysco Corporation | 3.300% | 7/15/26 | A3 | 1,232,357 | |||||||||||||||
Food Products – 1.2% | ||||||||||||||||||||
1,200 | Bunge Limited Finance Company | 3.250% | 8/15/26 | BBB | 1,146,491 | |||||||||||||||
1,045 | Kraft Heinz Foods Company | 4.375% | 6/01/46 | BBB– | 1,034,196 | |||||||||||||||
1,045 | Smithfield Foods Inc., 144A | 4.250% | 2/01/27 | BBB | 1,072,084 | |||||||||||||||
1,025 | Tyson Foods | 3.950% | 8/15/24 | BBB | 1,077,740 | |||||||||||||||
4,315 | Total Food Products | 4,330,511 | ||||||||||||||||||
Health Care Providers & Services – 0.6% | ||||||||||||||||||||
430 | HCA Inc. | 5.500% | 6/15/47 | BBB– | 428,925 | |||||||||||||||
540 | Lifepoint Health Inc. | 5.375% | 5/01/24 | Ba2 | 535,950 | |||||||||||||||
1,150 | UnitedHealth Group Incorporated | 4.750% | 7/15/45 | A+ | 1,357,151 | |||||||||||||||
2,120 | Total Health Care Providers & Services | 2,322,026 | ||||||||||||||||||
Health Care Technology – 0.1% | ||||||||||||||||||||
535 | Exela Intermediate LLC / Exela Financial Inc., 144A | 10.000% | 7/15/23 | B | 520,288 | |||||||||||||||
Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||
345 | 1011778 BC ULC/New Red Finance Inc., 144A | 5.000% | 10/15/25 | B– | 347,588 | |||||||||||||||
Household Durables – 0.3% | ||||||||||||||||||||
875 | Harman International Industries, Inc. | 4.150% | 5/15/25 | BBB+ | 904,498 | |||||||||||||||
10 | Lennar Corporation | 4.750% | 4/01/21 | BB+ | 10,400 | |||||||||||||||
885 | Total Household Durables | 914,898 | ||||||||||||||||||
Industrial Conglomerates – 0.9% | ||||||||||||||||||||
1,700 | GE Capital International Funding CO | 4.418% | 11/15/35 | A+ | 1,838,553 | |||||||||||||||
1,550 | Siemens Financieringsmaatschappij NV, 144A | 3.400% | 3/16/27 | A+ | 1,578,974 | |||||||||||||||
3,250 | Total Industrial Conglomerates | 3,417,527 | ||||||||||||||||||
Insurance – 2.5% | ||||||||||||||||||||
385 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 527,232 | |||||||||||||||
975 | CNA Financial Corporation | 3.450% | 8/15/27 | BBB+ | 960,535 |
NUVEEN | 53 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Insurance (continued) | ||||||||||||||||||||
$ | 555 | Genworth Holdings Inc. | 4.800% | 2/15/24 | B | $ | 471,750 | |||||||||||||
1,530 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 1,650,736 | |||||||||||||||
1,215 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 1,268,160 | |||||||||||||||
1,000 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 1,015,100 | |||||||||||||||
1,020 | Unum Group | 4.000% | 3/15/24 | BBB | 1,061,949 | |||||||||||||||
850 | Willis North America, Inc. | 3.600% | 5/15/24 | BBB | 863,930 | |||||||||||||||
1,440 | XLIT Limited | 4.450% | 3/31/25 | BBB | 1,472,503 | |||||||||||||||
8,970 | Total Insurance | 9,291,895 | ||||||||||||||||||
Internet Software & Services – 0.4% | ||||||||||||||||||||
1,370 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 1,422,018 | |||||||||||||||
Machinery – 0.8% | ||||||||||||||||||||
1,120 | Cummins Engine Inc. | 4.875% | 10/01/43 | A+ | 1,341,540 | |||||||||||||||
1,590 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | 1,574,521 | |||||||||||||||
2,710 | Total Machinery | 2,916,061 | ||||||||||||||||||
Media – 1.3% | ||||||||||||||||||||
685 | Comcast Corporation | 6.400% | 5/15/38 | A– | 924,360 | |||||||||||||||
1,500 | Comcast Corporation | 6.400% | 4/30/40 | A– | 2,025,633 | |||||||||||||||
715 | SES SA, 144A | 3.600% | 4/04/23 | BBB | 716,502 | |||||||||||||||
1,290 | Time Warner Inc. | 3.875% | 1/15/26 | BBB+ | 1,301,984 | |||||||||||||||
4,190 | Total Media | 4,968,479 | ||||||||||||||||||
Metals & Mining – 0.3% | ||||||||||||||||||||
1,100 | Glencore Funding LLC, 144A | 3.875% | 10/27/27 | BBB | 1,085,436 | |||||||||||||||
Oil, Gas & Consumable Fuels – 2.7% | ||||||||||||||||||||
1,087 | Berkshire Hathaway Energy Company | 6.125% | 4/01/36 | A– | 1,457,494 | |||||||||||||||
850 | BP Capital Markets PLC | 2.520% | 9/19/22 | A1 | 845,660 | |||||||||||||||
455 | Cheniere Corpus Christi Holdings LLC | 5.125% | 6/30/27 | BB– | 470,652 | |||||||||||||||
885 | Occidental Petroleum Corporation | 3.400% | 4/15/26 | A | 906,111 | |||||||||||||||
630 | Petro Canada | 6.800% | 5/15/38 | A– | 867,686 | |||||||||||||||
750 | Petroleos del Peru SA, 144A | 4.750% | 6/19/32 | BBB+ | 758,437 | |||||||||||||||
1,050 | Petroleos Mexicanos, 144A | 5.375% | 3/13/22 | BBB+ | 1,113,000 | |||||||||||||||
645 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 724,465 | |||||||||||||||
895 | Sunoco Logistics Partners LP | 4.000% | 10/01/27 | BBB– | 877,335 | |||||||||||||||
495 | Targa Resources Inc. | 4.250% | 11/15/23 | BB– | 489,431 | |||||||||||||||
1,380 | Woodside Finance Limited, 144A | 3.650% | 3/05/25 | BBB+ | 1,388,059 | |||||||||||||||
9,122 | Total Oil, Gas & Consumable Fuels | 9,898,330 | ||||||||||||||||||
Paper & Forest Products – 0.3% | ||||||||||||||||||||
975 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | 1,126,598 |
54 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Personal Products – 0.3% | ||||||||||||||||||||
$ | 840 | International Paper Company | 8.700% | 6/15/38 | BBB | $ | 1,269,695 | |||||||||||||
Pharmaceuticals – 0.5% | ||||||||||||||||||||
1,215 | Teva Pharmaceutical Finance III, (5) | 3.150% | 10/01/26 | BBB– | 1,002,889 | |||||||||||||||
670 | Valeant Pharmaceuticals International, 144A | 5.500% | 11/01/25 | BB– | 681,725 | |||||||||||||||
1,885 | Total Pharmaceuticals | 1,684,614 | ||||||||||||||||||
Road & Rail – 0.2% | ||||||||||||||||||||
655 | The Hertz Corporation, 144A | 7.625% | 6/01/22 | BB– | 686,113 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 0.6% | ||||||||||||||||||||
1,255 | Intel Corporation | 3.150% | 5/11/27 | A+ | 1,279,499 | |||||||||||||||
1,105 | Texas Instruments Incorporated | 2.900% | 11/03/27 | A+ | 1,101,007 | |||||||||||||||
2,360 | Total Semiconductors & Semiconductor Equipment | 2,380,506 | ||||||||||||||||||
Software – 0.3% | ||||||||||||||||||||
1,165 | Microsoft Corporation | 3.300% | 2/06/27 | AAA | 1,201,361 | |||||||||||||||
Specialty Retail – 1.3% | ||||||||||||||||||||
1,005 | AutoNation Inc. | 4.500% | 10/01/25 | BBB– | 1,051,541 | |||||||||||||||
1,380 | Bed Bath and Beyond Incorporated | 5.165% | 8/01/44 | Baa1 | 1,213,010 | |||||||||||||||
1,145 | Lowes Companies, Inc. | 3.100% | 5/03/27 | A– | 1,148,715 | |||||||||||||||
1,515 | O’Reilly Automotive Inc. | 4.875% | 1/14/21 | BBB+ | 1,608,674 | |||||||||||||||
5,045 | Total Specialty Retail | 5,021,940 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||||||||||||
1,000 | Apple Inc. | 3.850% | 5/04/43 | AA+ | 1,038,017 | |||||||||||||||
710 | Western Digital Corporation, 144A | 7.375% | 4/01/23 | BBB– | 765,912 | |||||||||||||||
1,710 | Total Technology Hardware, Storage & Peripherals | 1,803,929 | ||||||||||||||||||
Trading Companies & Distributors – 0.1% | ||||||||||||||||||||
245 | Ashtead Capital Inc., 144A | 4.125% | 8/15/25 | BBB– | 247,450 | |||||||||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||||||||||||
470 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 470,000 | |||||||||||||||
1,322 | Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC, 144A | 3.360% | 9/20/21 | Baa2 | 1,330,137 | |||||||||||||||
1,275 | Telefonica Emisiones SAU | 4.103% | 3/08/27 | BBB | 1,317,086 | |||||||||||||||
3,067 | Total Wireless Telecommunication Services | 3,117,223 | ||||||||||||||||||
$ | 141,162 | Total Corporate Bonds (cost $142,719,700) | 147,047,334 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 5.5% | ||||||||||||||||||||
Automobiles – 0.0% | ||||||||||||||||||||
$ | 155 | General Motors Financial Company Inc. | 5.750% | N/A (6) | BB+ | $ | 159,624 |
NUVEEN | 55 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Banks – 1.7% | ||||||||||||||||||||
$ | 835 | Bank of America Corporation | 6.300% | N/A (6) | BBB– | $ | 943,550 | |||||||||||||
645 | Citigroup Inc. | 6.250% | N/A (6) | BB+ | 711,435 | |||||||||||||||
2,250 | JP Morgan Chase & Company | 6.750% | N/A (6) | BBB– | 2,548,125 | |||||||||||||||
1,100 | KeyCorp | 5.000% | N/A (6) | Baa3 | 1,133,000 | |||||||||||||||
1,085 | SunTrust Bank Inc. | 5.050% | N/A (6) | Baa3 | 1,098,562 | |||||||||||||||
5,915 | Total Banks | 6,434,672 | ||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||
755 | Bank of New York Mellon | 4.950% | N/A (6) | Baa1 | 781,463 | |||||||||||||||
780 | Goldman Sachs Group Inc. | 5.300% | N/A (6) | Ba1 | 828,750 | |||||||||||||||
625 | State Street Corporation | 5.250% | N/A (6) | Baa1 | 655,500 | |||||||||||||||
2,160 | Total Capital Markets | 2,265,713 | ||||||||||||||||||
Commercial Services & Supplies – 0.2% | ||||||||||||||||||||
770 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB | 841,225 | |||||||||||||||
Consumer Finance – 0.6% | ||||||||||||||||||||
985 | American Express Company | 5.200% | N/A (6) | Baa2 | 1,012,087 | |||||||||||||||
1,165 | Capital One Financial Corporation | 5.550% | N/A (6) | Baa3 | 1,205,775 | |||||||||||||||
2,150 | Total Consumer Finance | 2,217,862 | ||||||||||||||||||
Food Products – 0.4% | ||||||||||||||||||||
1,300 | Land O’ Lakes Incorporated, 144A | 8.000% | N/A (6) | BB | 1,456,000 | |||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
1,851 | General Electric Capital Corporation | 5.000% | N/A (6) | A– | 1,907,641 | |||||||||||||||
Insurance – 1.5% | ||||||||||||||||||||
1,000 | Allstate Corporation | 5.750% | 8/15/53 | Baa1 | 1,091,000 | |||||||||||||||
1,245 | MetLife Inc. | 5.250% | N/A (6) | BBB | 1,294,476 | |||||||||||||||
1,395 | Principal Financial Group | 4.700% | 5/15/55 | Baa2 | 1,428,480 | |||||||||||||||
1,500 | Prudential Financial Inc. | 5.200% | 3/15/44 | BBB+ | 1,597,500 | |||||||||||||||
5,140 | Total Insurance | 5,411,456 | ||||||||||||||||||
$ | 19,441 | Total $1,000 Par (or similar) Institutional Preferred (cost $19,368,188) | 20,694,193 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 5.3% | ||||||||||||||||||||
$ | 20,415 | United States Treasury Notes | 1.750% | 9/30/22 | Aaa | $ | 20,003,455 | |||||||||||||
$ | 20,415 | Total U.S. Government and Agency Obligations (cost $20,140,373) | 20,003,455 |
56 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CONTINGENT CAPITAL SECURITIES – 1.8% (7) | ||||||||||||||||||||
Banks – 1.1% | ||||||||||||||||||||
$ | 770 | Australia and New Zealand Banking Group Limited of the United Kingdom, 144A | 6.750% | N/A (6) | Baa2 | $ | 875,875 | |||||||||||||
1,525 | Nordea Bank AB, 144A | 6.125% | N/A (6) | BBB | 1,641,663 | |||||||||||||||
590 | Standard Chartered PLC, 144A | 7.500% | N/A (6) | Ba1 | 638,675 | |||||||||||||||
1,125 | Westpac Banking Corp. | 5.000% | N/A (6) | Baa2 | 1,121,646 | |||||||||||||||
4,010 | Total Banks | 4,277,859 | ||||||||||||||||||
Capital Markets – 0.3% | ||||||||||||||||||||
1,000 | UBS Group AG, Reg S | 7.125% | N/A (6) | BBB– | 1,061,800 | |||||||||||||||
Diversified Financial Services – 0.4% | ||||||||||||||||||||
1,175 | BNP Paribas, 144A | 7.375% | N/A (6) | BBB– | 1,357,125 | |||||||||||||||
$ | 6,185 | Total Contingent Capital Securities (cost $6,377,589) | 6,696,784 | |||||||||||||||||
Principal Amount (000) (8) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 1.6% | ||||||||||||||||||||
Egypt – 0.2% | ||||||||||||||||||||
$ | 680 | Arab Republic of Egypt, 144A | 6.125% | 1/31/22 | B | $ | 711,314 | |||||||||||||
Germany – 1.0% | ||||||||||||||||||||
3,100 | EUR | Deutschland Republic, Reg S | 0.250% | 2/15/27 | Aaa | 3,684,326 | ||||||||||||||
Honduras – 0.2% | ||||||||||||||||||||
700 | Honduras Government, 144A | 8.750% | 12/16/20 | BB– | 784,315 | |||||||||||||||
Sri Lanka – 0.2% | ||||||||||||||||||||
700 | Republic of Sri Lanka, 144A | 6.125% | 6/03/25 | B+ | 739,934 | |||||||||||||||
Total Sovereign Debt (cost $5,671,675) | 5,919,889 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (9) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.2% | ||||||||||||||||||||
Georgia – 0.2% | ||||||||||||||||||||
$ | 750 | Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project P Bonds, Refunding Taxable Build America Bonds Series 2010A, 7.055%, 4/01/57 | No Opt. Call | A– | $ | 926,745 | ||||||||||||||
$ | 750 | Total Municipal Bonds (cost $816,061) | 926,745 | |||||||||||||||||
Total Long-Term Investments (cost $358,506,507) | 367,060,535 |
NUVEEN | 57 |
Nuveen Core Plus Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.6% |
| |||||||||||||||||||
Money Market Funds – 0.6% | ||||||||||||||||||||
2,110,300 | First American Government Obligations Fund, Class X, (10) | 1.196% (11) | $ | 2,110,300 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $2,110,300) |
| 2,110,300 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 9.0% | ||||||||||||||||||||
Money Market Funds – 9.0% | ||||||||||||||||||||
33,679,639 | First American Treasury Obligations Fund, Class Z | 1.181% (11) | $ | 33,679,639 | ||||||||||||||||
Total Short-Term Investments (cost $33,679,639) | 33,679,639 | |||||||||||||||||||
Total Investments (cost $394,296,446) – 107.8% | 402,850,474 | |||||||||||||||||||
Other Assets Less Liabilities – (7.8)% (12) | (29,213,824 | ) | ||||||||||||||||||
Net Assets – 100% | $ | 373,636,650 |
Investments in Derivatives
Forward Foreign Currency Contracts
Currency Purchased | Notional Amount (Local Currency) | Currency Sold | Notional Amount (Local Currency) | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||
U.S. Dollar | 3,631,749 | Euro | 3,065,000 | Bank of America, N.A. | 2/13/18 | $ | (55,933 | ) |
Credit Default Swaps – OTC Cleared
Referenced Entity | Buy/Sell Protection (13) | Notional Amount | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Maturity Date | Value | Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||||||
Markit CDX.NA.HY.29 | Buy | 3,410,000 | 5.000 | % | Quarterly | 12/20/22 | $ | (288,107 | ) | $ | (262,243 | ) | $ | (25,864 | ) | $ | 4,032 |
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||
U.S Treasury 5-Year Note | Long | 44 | 3/18 | $ | 5,139,512 | $ | 5,111,218 | $ | (28,294 | ) | $ | 4,125 | ||||||||||||||
U.S Treasury 10-Year Note | Short | (75 | ) | 3/18 | (9,301,404 | ) | (9,303,516 | ) | (2,112 | ) | (11,480 | ) | ||||||||||||||
U.S. Treasury Long Bond | Long | 24 | 3/18 | 3,685,237 | 3,672,000 | (13,237 | ) | 6,750 | ||||||||||||||||||
U.S. Treasury Ultra Bond | Long | 66 | 3/18 | 11,012,088 | 11,065,313 | 53,225 | 28,875 | |||||||||||||||||||
Total | $ | 10,535,433 | $ | 10,545,015 | $ | 9,582 | $ | 28,270 | ||||||||||||||||||
Total receivable for variation margin on futures contracts | $ | 39,750 | ||||||||||||||||||||||||
Total payable for variation margin on futures contracts | $ | (11,480 | ) |
* | The aggregate notional amount of long and short positions is $19,836,837 and $(9,301,404), respectively. |
58 | NUVEEN |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(4) | Principal Amount (000) rounds to less than $1,000. |
(5) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $2,029,859. |
(6) | Perpetual security. Maturity date is not applicable. |
(7) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. |
(8) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(9) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(10) | 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. |
(11) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(12) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
(13) | The Fund entered into the credit default swaps to gain investment exposure to the referenced entity. Selling protection has a similar credit risk position to owning the referenced entity. Buying protection has a similar credit risk position to selling the referenced entity short. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
EUR | Euro |
LIBOR | London Inter-Bank Offered Rate |
Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN | 59 |
Nuveen High Income Bond Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
LONG-TERM INVESTMENTS – 95.6% | ||||||||||||||||||||||||||||
CORPORATE BONDS – 81.3% | ||||||||||||||||||||||||||||
Aerospace & Defense – 1.6% | ||||||||||||||||||||||||||||
$ | 2,500 | Bombardier Inc., 144A | 7.500% | 3/15/25 | B | $ | 2,518,750 | |||||||||||||||||||||
1,500 | Kratos Defense & Security Solutions Inc., 144A | 6.500% | 11/30/25 | B | 1,560,000 | |||||||||||||||||||||||
1,500 | StandardAero Aviation Holdings Inc., 144A | 10.000% | 7/15/23 | B– | 1,642,500 | |||||||||||||||||||||||
Total Aerospace & Defense | 5,721,250 | |||||||||||||||||||||||||||
Airlines – 1.2% | ||||||||||||||||||||||||||||
2,000 | Virgin Australia Holdings Limited, 144A | 7.875% | 10/15/21 | B– | 2,060,000 | |||||||||||||||||||||||
2,425 | VistaJet Malta Finance PLC, 144A | 7.750% | 6/01/20 | B– | 2,255,250 | |||||||||||||||||||||||
Total Airlines | 4,315,250 | |||||||||||||||||||||||||||
Banks – 0.6% | ||||||||||||||||||||||||||||
1,850 | Curo Financial Technologies Corporation, 144A, (4) | 12.000% | 3/01/22 | B– | 2,035,000 | |||||||||||||||||||||||
Building Products – 0.8% | ||||||||||||||||||||||||||||
809 | Corporativo Javer S.A. de C.V, 144A | 9.875% | 4/06/21 | BB– | 835,293 | |||||||||||||||||||||||
2,000 | NWH Escrow Corporation, 144A | 7.500% | 8/01/21 | B– | 1,840,000 | |||||||||||||||||||||||
Total Building Products | 2,675,293 | |||||||||||||||||||||||||||
Chemicals – 3.2% | �� | |||||||||||||||||||||||||||
1,500 | CF Industries Inc. | 5.375% | 3/15/44 | BB+ | 1,481,250 | |||||||||||||||||||||||
1,500 | CVR Partners LP / CVR Nitrogen Finance Corp., 144A | 9.250% | 6/15/23 | B+ | 1,614,375 | |||||||||||||||||||||||
2,500 | FXI Holdings, Inc., 144A | 7.875% | 11/01/24 | B | 2,494,500 | |||||||||||||||||||||||
2,000 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 2,057,500 | |||||||||||||||||||||||
1,550 | Rayonier AM Products Inc., 144A | 5.500% | 6/01/24 | BB– | 1,544,188 | |||||||||||||||||||||||
2,000 | Tronox Finance LLC, 144A | 7.500% | 3/15/22 | B– | 2,090,000 | |||||||||||||||||||||||
Total Chemicals | 11,281,813 | |||||||||||||||||||||||||||
Commercial Services & Supplies – 2.1% | ||||||||||||||||||||||||||||
2,000 | ADT Corporation | 6.250% | 10/15/21 | BB– | 2,190,000 | |||||||||||||||||||||||
1,000 | APX Group, Inc. | 7.625% | 9/01/23 | Caa2 | 1,057,500 | |||||||||||||||||||||||
1,800 | Arch Merger Sub Inc., 144A | 8.500% | 9/15/25 | B– | 1,665,000 | |||||||||||||||||||||||
2,375 | R.R. Donnelley & Sons Company | 7.875% | 3/15/21 | B | 2,470,000 | |||||||||||||||||||||||
Total Commercial Services & Supplies | 7,382,500 | |||||||||||||||||||||||||||
Construction & Engineering – 1.1% | ||||||||||||||||||||||||||||
2,500 | HC2 Holdings, Inc., 144A | 11.000% | 12/01/19 | B– | 2,540,625 | |||||||||||||||||||||||
1,500 | Michael Baker Holdings LLC Finance Corporation, 144A | 8.750% | 3/01/23 | Caa1 | 1,451,250 | |||||||||||||||||||||||
Total Construction & Engineering | 3,991,875 |
60 | NUVEEN |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Consumer Finance – 1.3% | ||||||||||||||||||||||||||||
$ | 2,000 | Enova International, Inc., 144A | 8.500% | 9/01/24 | B– | $ | 2,050,000 | |||||||||||||||||||||
1,018 | Enova International, Inc. | 9.750% | 6/01/21 | B– | 1,076,535 | |||||||||||||||||||||||
1,500 | Navient Corporation | 5.500% | 1/25/23 | BB | 1,496,250 | |||||||||||||||||||||||
Total Consumer Finance | 4,622,785 | |||||||||||||||||||||||||||
Containers & Packaging – 0.6% | ||||||||||||||||||||||||||||
2,000 | Ardagh Packaging Finance PLC and Ardagh MP Holdings USA, Inc., 144A | 4.625% | 5/15/23 | BB | 2,040,000 | |||||||||||||||||||||||
Diversified Consumer Services – 0.6% | ||||||||||||||||||||||||||||
1,100 | Jones Group Inc. | 6.125% | 11/15/34 | Ca | 110,000 | |||||||||||||||||||||||
2,000 | Weight Watchers International Inc., 144A | 8.625% | 12/01/25 | B3 | 2,090,000 | |||||||||||||||||||||||
Total Diversified Consumer Services | 2,200,000 | |||||||||||||||||||||||||||
Diversified Financial Services – 2.5% | ||||||||||||||||||||||||||||
2,470 | CNG Holdings Inc., 144A | 9.375% | 5/15/20 | CCC | 2,395,900 | |||||||||||||||||||||||
2,250 | Hexion 2 US Financial Corp., 144A, (4) | 13.750% | 2/01/22 | CCC | 1,845,000 | |||||||||||||||||||||||
2,000 | Jefferies Finance LLC Corporation, 144A | 7.250% | 8/15/24 | BB– | 2,052,500 | |||||||||||||||||||||||
2,200 | Stoneway Capital Corporation, 144A | 10.000% | 3/01/27 | B | 2,339,260 | |||||||||||||||||||||||
Total Diversified Financial Services | 8,632,660 | |||||||||||||||||||||||||||
Diversified Telecommunication Services – 5.5% | ||||||||||||||||||||||||||||
2,350 | Consolidated Communications Finance Company | 6.500% | 10/01/22 | B– | 2,115,000 | |||||||||||||||||||||||
2,000 | Embarq Corporation | 7.995% | 6/01/36 | BB | 1,945,000 | |||||||||||||||||||||||
3,425 | GCI Inc. | 6.875% | 4/15/25 | BB– | 3,647,625 | |||||||||||||||||||||||
1,500 | Inelsat Connect Finance SA, 144A, (4) | 12.500% | 4/01/22 | CCC– | 1,312,500 | |||||||||||||||||||||||
2,900 | Level 3 Financing Inc. | 5.250% | 3/15/26 | BB | 2,846,495 | |||||||||||||||||||||||
2,000 | Telenet Finance Luxembourg Notes Sarl, 144A, Reg S | 5.500% | 3/01/28 | BB | 1,987,186 | |||||||||||||||||||||||
1,164 | Windstream Corporation, (4) | 7.750% | 10/15/20 | B | 983,580 | |||||||||||||||||||||||
4,014 | Xplornet Communications, Inc., 144A, (cash 9.625%, PIK 10.625%) | 9.625% | 6/01/22 | CCC | 4,204,173 | |||||||||||||||||||||||
Total Diversified Telecommunication Services | 19,041,559 | |||||||||||||||||||||||||||
Electric Utilities – 0.4% | �� | |||||||||||||||||||||||||||
1,350 | ACWA Power Management And Investment One Ltd, 144A |
| 5.950% | 12/15/39 | BBB– | 1,381,995 | ||||||||||||||||||||||
1,000 | Texas Competitive Electric Holdings Co LLC / TCEH Finance, Inc., 144A | 11.500% | 10/01/20 | N/R | 7,500 | |||||||||||||||||||||||
Total Electric Utilities | 1,389,495 | |||||||||||||||||||||||||||
Electrical Equipment – 0.8% | ||||||||||||||||||||||||||||
2,750 | Park Aerospace Holdings Limited, 144A | 5.500% | 2/15/24 | BB | 2,729,375 | |||||||||||||||||||||||
Energy Equipment & Services – 1.6% | ||||||||||||||||||||||||||||
2,750 | Ensco PLC, (4) | 4.500% | 10/01/24 | BB– | 2,310,000 | |||||||||||||||||||||||
1,275 | Murray Energy Corporation, 144A | 11.250% | 4/15/21 | CCC | 650,250 |
NUVEEN | 61 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Energy Equipment & Services (continued) | ||||||||||||||||||||||||||||
$ | 1,170 | Pacific Drilling V Limited, 144A, (5) | 7.250% | 12/01/18 | N/R | $ | 620,100 | |||||||||||||||||||||
1,929 | Parker Drilling Company | 6.750% | 7/15/22 | B– | 1,581,780 | |||||||||||||||||||||||
615 | SAExploration Holdings Inc., 144A, (cash 10.000%, PIK 11.000%) | 10.000% | 4/14/19 | N/R | 390,712 | |||||||||||||||||||||||
Total Energy Equipment & Services | 5,552,842 | |||||||||||||||||||||||||||
Equity Real Estate Investment Trusts – 1.3% | ||||||||||||||||||||||||||||
2,000 | CBL & Associates LP, (4) | 5.950% | 12/15/26 | BBB– | 1,860,093 | |||||||||||||||||||||||
3,000 | Communications Sales & Leasing Inc., 144A, (4) | 7.125% | 12/15/24 | BB– | 2,730,000 | |||||||||||||||||||||||
Total Equity Real Estate Investment Trusts | 4,590,093 | |||||||||||||||||||||||||||
Food & Staples Retailing – 2.5% | ||||||||||||||||||||||||||||
2,400 | Albertsons Cos LLC/Safeway Inc./New Albertson’s Inc./Albertson’s LLC, (4) | 6.625% | 6/15/24 | B+ | 2,292,000 | |||||||||||||||||||||||
1,819 | Albertson’s, Inc. | 7.450% | 8/01/29 | B– | 1,587,078 | |||||||||||||||||||||||
2,000 | Pomegranate Merger Sub, Inc., 144A | 9.750% | 5/01/23 | Caa1 | 1,240,000 | |||||||||||||||||||||||
1,500 | Rite Aid Corporation, 144A, (4) | 6.125% | 4/01/23 | B | 1,353,750 | |||||||||||||||||||||||
1,250 | Supervalu Inc., (4) | 7.750% | 11/15/22 | B– | 1,221,875 | |||||||||||||||||||||||
1,750 | Tops Holding LLC / Tops Markets II Corporation, 144A | 8.000% | 6/15/22 | CCC+ | 945,000 | |||||||||||||||||||||||
Total Food & Staples Retailing | 8,639,703 | |||||||||||||||||||||||||||
Food Products – 1.2% | ||||||||||||||||||||||||||||
1,500 | ESAL GmbH, 144A | 6.250% | 2/05/23 | BB– | 1,425,000 | |||||||||||||||||||||||
1,500 | Marfrig Holding Europe BV, 144A | 7.000% | 3/15/24 | BB– | 1,505,625 | |||||||||||||||||||||||
1,200 | Nova Austral SA, 144A, Reg S | 8.250% | 5/26/21 | N/R | 1,200,440 | |||||||||||||||||||||||
Total Food Products | 4,131,065 | |||||||||||||||||||||||||||
Health Care Equipment & Supplies – 1.3% | ||||||||||||||||||||||||||||
3,375 | Tenet Healthcare Corporation | 6.000% | 10/01/20 | BB– | 3,568,387 | |||||||||||||||||||||||
1,000 | THC Escrow Corp III, 144A | 5.125% | 5/01/25 | Ba3 | 975,000 | |||||||||||||||||||||||
Total Health Care Equipment & Supplies | 4,543,387 | |||||||||||||||||||||||||||
Health Care Providers & Services – 1.5% | ||||||||||||||||||||||||||||
1,800 | Community Health Systems, Inc., (4) | 6.875% | 2/01/22 | CCC | 1,035,000 | |||||||||||||||||||||||
1,775 | HCA Inc. | 5.250% | 6/15/26 | BBB– | 1,881,500 | |||||||||||||||||||||||
2,000 | Kindred Healthcare Inc. | 8.000% | 1/15/20 | B– | 2,166,900 | |||||||||||||||||||||||
Total Health Care Providers & Services | 5,083,400 | |||||||||||||||||||||||||||
Health Care Technology – 0.7% | ||||||||||||||||||||||||||||
2,500 | Exela Intermediate LLC / Exela Financial Inc., 144A | 10.000% | 7/15/23 | B | 2,431,250 | |||||||||||||||||||||||
Hotels, Restaurants & Leisure – 3.4% | ||||||||||||||||||||||||||||
2,250 | 1011778 BC ULC/New Red Finance Inc., 144A | 4.250% | 5/15/24 | Ba3 | 2,244,375 | |||||||||||||||||||||||
2,000 | Carlson Travel, Inc., 144A | 6.750% | 12/16/23 | B | 1,810,000 | |||||||||||||||||||||||
2,000 | CRC Escrow Issuer LLC, 144A | 5.250% | 10/15/25 | B– | 2,020,600 |
62 | NUVEEN |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Hotels, Restaurants & Leisure (continued) | ||||||||||||||||||||||||||||
$ | 1,500 | Golden Nugget, Inc., 144A | 8.750% | 10/01/25 | CCC+ | $ | 1,575,000 | |||||||||||||||||||||
1,300 | Grupo Posadas SAB de CV, 144A | 7.875% | 6/30/22 | B+ | 1,342,250 | |||||||||||||||||||||||
1,500 | MGM Growth Properties Operating Partnership LP / MGP Escrow Co-Issuer, Inc., 144A | 4.500% | 1/15/28 | BB– | 1,470,000 | |||||||||||||||||||||||
1,600 | CAD | River Cree Enterprises LP, 144A | 11.000% | 1/20/21 | B– | 1,322,196 | ||||||||||||||||||||||
Total Hotels, Restaurants & Leisure | 11,784,421 | |||||||||||||||||||||||||||
Household Durables – 1.6% | ||||||||||||||||||||||||||||
1,750 | K. Hovnanian Enterprises Inc., 144A | 10.000% | 7/15/22 | CCC+ | 1,925,000 | |||||||||||||||||||||||
2,200 | New Home Company Inc. | 7.250% | 4/01/22 | B– | 2,304,500 | |||||||||||||||||||||||
1,500 | William Lyon Homes Incorporated | 5.875% | 1/31/25 | B+ | 1,531,875 | |||||||||||||||||||||||
Total Household Durables | 5,761,375 | |||||||||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 1.5% | ||||||||||||||||||||||||||||
1,000 | GenOn Energy Inc., (5) | 9.500% | 10/15/18 | N/R | 795,000 | |||||||||||||||||||||||
1,000 | NRG Energy Inc., 144A | 5.750% | 1/15/28 | BB– | 1,010,000 | |||||||||||||||||||||||
1,000 | NRG Energy Inc. | 7.250% | 5/15/26 | BB– | 1,088,740 | |||||||||||||||||||||||
2,850 | Talen Energy Supply LLC, (4) | 6.500% | 6/01/25 | B+ | 2,315,625 | |||||||||||||||||||||||
Total Independent Power & Renewable Electricity Producers |
| 5,209,365 | ||||||||||||||||||||||||||
Industrial Conglomerates – 0.2% | ||||||||||||||||||||||||||||
750 | Techniplas, LLC, 144A | 10.000% | 5/01/20 | B– | 615,000 | |||||||||||||||||||||||
Insurance – 0.3% | ||||||||||||||||||||||||||||
1,000 | Genworth Financial Inc. | 7.625% | 9/24/21 | B | 977,500 | |||||||||||||||||||||||
Internet Software & Services – 1.8% | ||||||||||||||||||||||||||||
2,720 | Donnelley Financial Solutions, Inc. | 8.250% | 10/15/24 | B | 2,910,400 | |||||||||||||||||||||||
2,300 | Inception Merger Sub Inc. / Rackspace Hosting Inc., 144A, (4) | 8.625% | 11/15/24 | BB– | 2,455,250 | |||||||||||||||||||||||
1,500 | Sungard Availability Services Capital, Inc., 144A | 8.750% | 4/01/22 | Caa2 | 926,250 | |||||||||||||||||||||||
Total Internet Software & Services | 6,291,900 | |||||||||||||||||||||||||||
Leisure Products – 1.0% | ||||||||||||||||||||||||||||
1,750 | Gateway Casinos & Entertainment Limited, 144A | 8.250% | 3/01/24 | CCC+ | 1,872,500 | |||||||||||||||||||||||
1,500 | Mattel Inc., 144A | 6.750% | 12/31/25 | Ba2 | 1,520,175 | |||||||||||||||||||||||
Total Leisure Products | 3,392,675 | |||||||||||||||||||||||||||
Machinery – 0.6% | ||||||||||||||||||||||||||||
2,050 | Navistar International Corporation, 144A | 6.625% | 11/01/25 | B– | 2,138,929 | |||||||||||||||||||||||
Marine – 1.1% | ||||||||||||||||||||||||||||
2,000 | Eletson Holdings Inc., 144A | 9.625% | 1/15/22 | CCC+ | 1,060,000 | |||||||||||||||||||||||
1,500 | Navios Maritime Acquisition Corporation, 144A | 8.125% | 11/15/21 | B | 1,271,250 |
NUVEEN | 63 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Marine (continued) | ||||||||||||||||||||||||||||
$ | 1,500 | Navios Maritime Holdings Inc., 144A, (4) | 11.250% | 8/15/22 | B– | $ | 1,447,500 | |||||||||||||||||||||
Total Marine | 3,778,750 | |||||||||||||||||||||||||||
Media – 6.1% | ||||||||||||||||||||||||||||
2,500 | Altice S.A, 144A | 7.750% | 5/15/22 | B | 2,450,000 | |||||||||||||||||||||||
1,000 | CBS Radio, Inc., 144A, (4) | 7.250% | 11/01/24 | B– | 1,054,375 | |||||||||||||||||||||||
2,500 | Dish DBS Corporation | 5.875% | 7/15/22 | Ba3 | 2,512,500 | |||||||||||||||||||||||
925 | iHeartCommunications, Inc. | 11.250% | 3/01/21 | Caa1 | 659,063 | |||||||||||||||||||||||
1,950 | iHeartCommunications, Inc. | 7.250% | 10/15/27 | CC | 526,500 | |||||||||||||||||||||||
1,750 | Lee Enterprises Inc., 144A | 9.500% | 3/15/22 | B2 | 1,811,250 | |||||||||||||||||||||||
2,200 | McGraw-Hill Global Education Holdings, 144A, (4) | 7.875% | 5/15/24 | BB+ | 2,172,500 | |||||||||||||||||||||||
2,000 | Midcontinent Communications Finance Company, 144A | 6.875% | 8/15/23 | B | 2,122,500 | |||||||||||||||||||||||
2,000 | Post Holdings Inc., 144A | 5.625% | 1/15/28 | B | 2,007,500 | |||||||||||||||||||||||
2,800 | SFR Group SA, 144A | 7.375% | 5/01/26 | B+ | 2,884,000 | |||||||||||||||||||||||
750 | SiTV Inc., 144A | 10.375% | 7/01/19 | CCC+ | 506,250 | |||||||||||||||||||||||
1,975 | CAD | Videotron Limited, 144A | 5.625% | 6/15/25 | BB | 1,685,679 | ||||||||||||||||||||||
1,000 | VTR Finance BV, 144A | 6.875% | 1/15/24 | BB– | 1,055,000 | |||||||||||||||||||||||
Total Media | 21,447,117 | |||||||||||||||||||||||||||
Metals & Mining – 7.2% | ||||||||||||||||||||||||||||
3,450 | Alcoa Nederland Holding BV, 144A | 7.000% | 9/30/26 | BB+ | 3,872,625 | |||||||||||||||||||||||
2,000 | Aleris International Inc., 144A | 9.500% | 4/01/21 | B2 | 2,110,000 | |||||||||||||||||||||||
1,500 | Cleveland-Cliffs Inc., 144A | 4.875% | 1/15/24 | BB– | 1,496,250 | |||||||||||||||||||||||
1,500 | FMG Resources, 144A, (4) | 5.125% | 5/15/24 | BB+ | 1,518,750 | |||||||||||||||||||||||
2,045 | Hudbay Minerals, Inc., 144A | 7.250% | 1/15/23 | B+ | 2,167,700 | |||||||||||||||||||||||
2,000 | IAMGOLD Corporation, 144A | 7.000% | 4/15/25 | B+ | 2,065,000 | |||||||||||||||||||||||
3,504 | Northland Resources AB, 144A, Reg S, (5) | 15.000% | 7/15/19 | N/R | 35,044 | |||||||||||||||||||||||
1,583 | Northland Resources AB, 144A, Reg S, (5) | 4.000% | 10/15/20 | N/R | 16 | |||||||||||||||||||||||
2,000 | Northwest Acquisition/Dominion Finco Inc. , 144A | 7.125% | 11/01/22 | BB | 2,065,000 | |||||||||||||||||||||||
2,150 | SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp., 144A | 7.500% | 6/15/25 | BB– | 2,246,750 | |||||||||||||||||||||||
2,630 | Taseko Mines Limited, 144A | 8.750% | 6/15/22 | B– | 2,692,462 | |||||||||||||||||||||||
1,000 | Teck Resources Limited, 144A | 8.500% | 6/01/24 | BB+ | 1,130,000 | |||||||||||||||||||||||
2,000 | United States Steel Corporation | 6.875% | 8/15/25 | B | 2,087,600 | |||||||||||||||||||||||
1,000 | Warrior Met Coal LLC, 144A | 8.000% | 11/01/24 | B– | 1,032,500 | |||||||||||||||||||||||
1,050 | Westmoreland Coal Co, 144A | 8.750% | 1/01/22 | CCC | 475,125 | |||||||||||||||||||||||
Total Metals & Mining | 24,994,822 | |||||||||||||||||||||||||||
Multiline Retail – 0.3% | ||||||||||||||||||||||||||||
1,675 | J.C. Penney Company Inc., (4) | 7.400% | 4/01/37 | B+ | 1,080,375 |
64 | NUVEEN |
Principal Amount (000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 12.7% | ||||||||||||||||||||||||||||
$ | 2,834 | Armstrong Energy Inc., (5) | 11.750% | 12/15/19 | N/R | $ | 446,355 | |||||||||||||||||||||
2,625 | Ascent Resources – Utica LLC / AEU Finance Corporation, 144A | 10.000% | 4/01/22 | B– | 2,815,312 | |||||||||||||||||||||||
2,150 | Bellatrix Exploration Limited, 144A | 8.500% | 5/15/20 | B+ | 2,031,750 | |||||||||||||||||||||||
2,500 | California Resources Corporation, 144A, (4) | 8.000% | 12/15/22 | CCC+ | 2,062,500 | |||||||||||||||||||||||
1,800 | Calumet Specialty Products | 6.500% | 4/15/21 | CCC+ | 1,791,000 | |||||||||||||||||||||||
1,500 | Chesapeake Energy Corporation, 144A, (4) | 8.000% | 6/15/27 | Caa1 | 1,440,000 | |||||||||||||||||||||||
1,000 | Cloud Peak Energy Resources LLC and Cloud Peak Energy Finance Corporation | 12.000% | 11/01/21 | B– | 1,077,500 | |||||||||||||||||||||||
1,750 | Denbury Resources Inc., 144A | 9.000% | 5/15/21 | B | 1,787,187 | |||||||||||||||||||||||
2,000 | Denbury Resources Incorporated | 4.625% | 7/15/23 | Caa3 | 1,280,000 | |||||||||||||||||||||||
2,000 | DOF Subsea AS, 144A, Reg S | 9.500% | 3/14/22 | N/R | 1,760,438 | |||||||||||||||||||||||
2,675 | Everest Acquisition LLC Finance | 9.375% | 5/01/20 | Caa3 | 2,260,375 | |||||||||||||||||||||||
2,900 | Genesis Energy LP | 6.500% | 10/01/25 | BB– | 2,943,500 | |||||||||||||||||||||||
831 | Golden Close Maritime Corporation Limited, 144A, Reg S, (cash 10.000%, PIK 15.000%) (5) | 8.000% | 3/29/22 | N/R | 722,872 | |||||||||||||||||||||||
1,285 | Martin Mid-Stream Partners LP Finance | 7.250% | 2/15/21 | B– | 1,297,850 | |||||||||||||||||||||||
2,704 | Metro Exploration Holding Inc., (5) | 11.500% | 2/16/20 | N/R | 270 | |||||||||||||||||||||||
1,000 | PBF Holding Company LLC | 7.250% | 6/15/25 | BB | 1,051,250 | |||||||||||||||||||||||
3,000 | Peabody Energy Corporation, (6) | 6.500% | 9/15/20 | N/R | — | |||||||||||||||||||||||
1,000 | Petrobras Global Finance BV | 6.250% | 3/17/24 | BB | 1,062,000 | |||||||||||||||||||||||
1,750 | Petrobras Global Finance BV | 7.375% | 1/17/27 | BB | 1,926,750 | |||||||||||||||||||||||
2,000 | Sanchez Energy Corporation, (4) | 6.125% | 1/15/23 | B– | 1,695,000 | |||||||||||||||||||||||
2,000 | Shelf Drill Holdings Limited, 144A | 9.500% | 11/02/20 | B2 | 2,037,500 | |||||||||||||||||||||||
2,800 | Southwestern Energy Company | 7.500% | 4/01/26 | BB | 2,975,000 | |||||||||||||||||||||||
1,952 | Talos Production LLC, 144A | 9.750% | 2/15/18 | N/R | 1,464,000 | |||||||||||||||||||||||
1,660 | Teekay Corporation | 8.500% | 1/15/20 | B+ | 1,689,050 | |||||||||||||||||||||||
2,000 | Transocean Inc., 144A | 9.000% | 7/15/23 | BB | 2,162,500 | |||||||||||||||||||||||
1,500 | Ultra Resources, Inc., 144A, (4) | 7.125% | 4/15/25 | BB | 1,496,250 | |||||||||||||||||||||||
1,648 | W&T Offshore, Inc., (4) | 8.500% | 6/15/19 | CC | 1,557,360 | |||||||||||||||||||||||
1,500 | Whiting Petroleum Corporation, 144A | 6.625% | 1/15/26 | BB– | 1,530,000 | |||||||||||||||||||||||
Total Oil, Gas & Consumable Fuels | 44,363,569 | |||||||||||||||||||||||||||
Paper & Forest Products – 0.2% | ||||||||||||||||||||||||||||
781 | Millar Western Forest Products Ltd | 9.000% | 5/01/22 | N/R | 788,810 | |||||||||||||||||||||||
Real Estate Management & Development – 1.9% | ||||||||||||||||||||||||||||
2,612 | Crescent Communities LLC, 144A | 8.875% | 10/15/21 | B+ | 2,768,720 | |||||||||||||||||||||||
1,500 | Hunt Companies Inc., 144A | 9.625% | 3/01/21 | N/R | 1,580,625 | |||||||||||||||||||||||
2,000 | Mattamy Group Corporation, 144A | 6.500% | 10/01/25 | BB | 2,115,000 | |||||||||||||||||||||||
Total Real Estate Management & Development | 6,464,345 |
NUVEEN | 65 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount��(000) (1) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||||||||||||||
$ | 1,115 | Herc Rentals, Inc., 144A | 7.500% | 6/01/22 | B+ | $ | 1,201,412 | |||||||||||||||||||||
2,000 | The Hertz Corporation, (4) | 5.875% | 10/15/20 | B– | 2,005,000 | |||||||||||||||||||||||
Total Road & Rail | 3,206,412 | |||||||||||||||||||||||||||
Software – 0.6% | ||||||||||||||||||||||||||||
2,000 | Olympus Merger Sub, Inc., 144A | 8.500% | 10/15/25 | B3 | 1,975,000 | |||||||||||||||||||||||
180 | SS&C Technologies Holdings, Inc. | 5.875% | 7/15/23 | B+ | 189,900 | |||||||||||||||||||||||
Total Software | 2,164,900 | |||||||||||||||||||||||||||
Specialty Retail – 2.0% | ||||||||||||||||||||||||||||
2,000 | goeasy Ltd, 144A | 7.875% | 11/01/22 | BB– | 2,087,500 | |||||||||||||||||||||||
2,000 | L Brands, Inc. | 6.875% | 11/01/35 | BB+ | 2,020,000 | |||||||||||||||||||||||
1,571 | Neiman Marcus Group Inc., 144A, (cash 8.750%, PIK 9.500%) | 8.750% | 10/15/21 | Caa3 | 840,305 | |||||||||||||||||||||||
2,500 | PetSmart, Inc., 144A | 5.875% | 6/01/25 | Ba3 | 1,918,750 | |||||||||||||||||||||||
Total Specialty Retail | 6,866,555 | |||||||||||||||||||||||||||
Technology Hardware, Storage & Peripherals – 1.1% | ||||||||||||||||||||||||||||
3,350 | Western Digital Corporation | 10.500% | 4/01/24 | BB+ | 3,881,813 | |||||||||||||||||||||||
Transportation Infrastructure – 0.5% | ||||||||||||||||||||||||||||
1,900 | Navigator Holdings Limited, 144A, Reg S |
| 7.750% | 2/10/21 | N/R | 1,833,800 | ||||||||||||||||||||||
Wireless Telecommunication Services – 3.9% | ||||||||||||||||||||||||||||
1,500 | Altice Financing SA, 144A | 7.500% | 5/15/26 | BB– | 1,597,500 | |||||||||||||||||||||||
1,900 | C&W SR Financing Designated Activity Co, 144A | 6.875% | 9/15/27 | BB– | 1,990,250 | |||||||||||||||||||||||
750 | Colombia Telecommunicaciones S.A. ESP, 144A |
| 8.500% | N/A | (7) | B+ | 806,250 | |||||||||||||||||||||
1,000 | Digicel Limited, 144A | 6.000% | 4/15/21 | B1 | 984,240 | |||||||||||||||||||||||
1,000 | Millicom International Cellular SA, 144A, (4) |
| 6.000% | 3/15/25 | BB+ | 1,062,500 | ||||||||||||||||||||||
4,150 | Sprint Capital Corporation | 6.875% | 11/15/28 | B+ | 4,175,938 | |||||||||||||||||||||||
2,250 | UPC Holding BV, 144A | 5.500% | 1/15/28 | B | 2,188,125 | |||||||||||||||||||||||
960 | Windstream Services LLC / Windstream Finance Corp., 144A, (4) | 8.625% | 10/31/25 | BB | 924,000 | |||||||||||||||||||||||
Total Wireless Telecommunication Services |
| 13,728,803 | ||||||||||||||||||||||||||
Total Corporate Bonds (cost $297,137,208) |
| 283,801,831 | ||||||||||||||||||||||||||
Principal Amount (000) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 2.6% |
| |||||||||||||||||||||||||||
Commercial Services & Supplies – 0.8% | ||||||||||||||||||||||||||||
$ | 2,500 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB | $ | 2,731,250 | |||||||||||||||||||||
Electric Utilities – 0.1% | ||||||||||||||||||||||||||||
300 | DCP Midstream Operating LP, 144A | 5.850% | 5/21/43 | BB– | 279,000 |
66 | NUVEEN |
Principal Amount (000) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
Food Products – 1.3% | ||||||||||||||||||||||||||||
$ | 2,000 | Dairy Farmers of America Inc., 144A | 7.125% | N/A (7) | Baa3 | $ | 2,205,000 | |||||||||||||||||||||
2,000 | Land O’ Lakes Incorporated, 144A | 7.250% | N/A (7) | BB | 2,180,000 | |||||||||||||||||||||||
4,000 | Total Food Products | 4,385,000 | ||||||||||||||||||||||||||
Industrial Conglomerates – 0.0% | ||||||||||||||||||||||||||||
2,000 | OAS Financial Limited, 144A, (5) | 8.875% | N/A (7) | N/R | 95,000 | |||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||||||||||||||||||||||
1,500 | Plains All American Pipeline L.P, (4) | 6.125% | N/A (7) | BB | 1,497,750 | |||||||||||||||||||||||
$ | 10,300 | Total $1,000 Par (or similar) Institutional Preferred (cost $10,390,507) |
| 8,988,000 | ||||||||||||||||||||||||
Principal Amount (000) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 2.8% (8) |
| |||||||||||||||||||||||||||
Banks – 2.2% | ||||||||||||||||||||||||||||
$ | 1,200 | Banco Bilbao Vizcaya Argentaria S.A | 6.125% | N/A (7) | Ba2 | $ | 1,237,500 | |||||||||||||||||||||
3,000 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A (7) | BB– | 3,247,500 | |||||||||||||||||||||||
3,000 | UniCredit SpA, Reg S | 8.000% | N/A (7) | B+ | 3,283,332 | |||||||||||||||||||||||
7,200 | Total Banks | 7,768,332 | ||||||||||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||||||||||
2,000 | Deutsche Bank AG, Reg S | 6.250% | N/A (7) | BB– | 1,994,280 | |||||||||||||||||||||||
$ | 9,200 | Total Contingent Capital Securities (cost $8,612,989) |
| 9,762,612 | ||||||||||||||||||||||||
Principal Amount (000) | Description (2) | Coupon (9) | Reference Rate (9) | Spread (9) | Maturity (10) | Ratings (3) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 2.7% (9) |
| |||||||||||||||||||||||||||
Containers & Packaging – 0.3% | ||||||||||||||||||||||||||||
$ | 1,000 | Packaging Coordinators Inc., Second Lien Term Loan | 10.320% | 3-Month LIBOR | 8.750% | 6/30/24 | CCC+ | $ | 1,000,000 | |||||||||||||||||||
Diversified Financial Services – 0.5% | ||||||||||||||||||||||||||||
1,749 | Jill Acquisition LLC, First Lien Term Loan B | 6.380% | 3-Month LIBOR | 5.000% | 5/08/22 | B | 1,664,882 | |||||||||||||||||||||
Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||||||||||
297 | Amaya BV, Second Lien Term Loan | 8.693% | 3-Month LIBOR | 7.000% | 7/29/22 | B | 299,102 | |||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.3% | ||||||||||||||||||||||||||||
130 | Empire Generating Company LLC, Term Loan C | 5.630% | 3-Month LIBOR | 4.250% | 3/13/21 | B | 109,239 | |||||||||||||||||||||
1,319 | Empire Generating Company LLC | 5.630% | 3-Month LIBOR | 4.250% | 3/13/21 | B | 1,104,905 | |||||||||||||||||||||
1,449 | Total Independent Power & Renewable Electricity Producers |
| 1,214,144 | |||||||||||||||||||||||||
IT Services – 0.1% | ||||||||||||||||||||||||||||
500 | Optiv Security Inc., Second Lien Term Loan | 8.250% | 3-Month LIBOR | 7.250% | 1/13/25 | Caa1 | 450,625 |
NUVEEN | 67 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (2) | Coupon (9) | Reference Rate (9) | Spread (9) | Maturity (10) | Ratings (3) | Value | |||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.3% | ||||||||||||||||||||||||||||
$ | 2,493 | Fieldwood Energy LLC, Second Lien Term Loan, (5) | 8.818% | 3-Month LIBOR | 7.125% | 9/30/20 | Ca | $ | 870,333 | |||||||||||||||||||
Paper & Forest Products – 0.2% | ||||||||||||||||||||||||||||
684 | Verso Paper Holdings LLC, First Lien Term Loan | 12.472% | 3-Month LIBOR | 11.000% | 10/14/21 | BB | 703,243 | |||||||||||||||||||||
Professional Services – 0.9% | ||||||||||||||||||||||||||||
2,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 7.319% | 3-Month LIBOR | 5.750% | 2/28/22 | CCC+ | 2,017,500 | |||||||||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 7.229% | 3-Month LIBOR | 5.750% | 2/28/22 | CCC+ | 1,010,000 | |||||||||||||||||||||
3,000 | Total Professional Services | 3,027,500 | ||||||||||||||||||||||||||
$ | 11,172 | Total Variable Rate Senior Loan Interests (cost $10,370,551) |
| 9,229,829 | ||||||||||||||||||||||||
Shares | Description (2) | Value | ||||||||||||||||||||||||||
COMMON STOCKS – 1.9% | ||||||||||||||||||||||||||||
Building Products – 0.0% | �� | |||||||||||||||||||||||||||
527 | Dayton Superior Corporation, (6), (11) | $ | 30,195 | |||||||||||||||||||||||||
585 | Dayton Superior, (6) | 33,550 | ||||||||||||||||||||||||||
Total Building Products | 63,745 | |||||||||||||||||||||||||||
Capital Markets – 0.0% | ||||||||||||||||||||||||||||
2,293 | Adamas Finance Asia Limited, (11) | 1,731 | ||||||||||||||||||||||||||
10,000 | Och-Ziff Capital Management Group, Class A Shares | 25,000 | ||||||||||||||||||||||||||
Total Capital Markets | 26,731 | |||||||||||||||||||||||||||
Electric Utilities – 0.5% | ||||||||||||||||||||||||||||
40,000 | Exelon Corporation | 1,576,400 | ||||||||||||||||||||||||||
Energy Equipment & Services – 0.0% | ||||||||||||||||||||||||||||
1,644 | Key Energy Services Inc., (4), (11) | 19,388 | ||||||||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.4% | ||||||||||||||||||||||||||||
46,774 | Dynegy Inc., (11) | 554,272 | ||||||||||||||||||||||||||
41,625 | Vistra Energy Corporation, (11) | 762,570 | ||||||||||||||||||||||||||
Total Independent Power & Renewable Electricity Producers |
| 1,316,842 | ||||||||||||||||||||||||||
Metals & Mining – 0.0% | ||||||||||||||||||||||||||||
499,059 | Northland Resources SA, (6), (11) | 1,497 | ||||||||||||||||||||||||||
Multi-Utilities – 0.2% | ||||||||||||||||||||||||||||
10,000 | Dominion Resources, Inc. | 810,584 |
68 | NUVEEN |
Shares | Description (2) | Value | ||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.8% | ||||||||||||||||||||||||||||
13,200 | Arch Coal Inc. | $ | 1,229,712 | |||||||||||||||||||||||||
50,119 | Connacher Oil and Gas Limited, (11), (12) | 5 | ||||||||||||||||||||||||||
19,121 | Golden Close Maritime Corporation Limited, (11), (12) | 4,657 | ||||||||||||||||||||||||||
37,000 | Peabody Energy Corporation, (11) | 1,456,690 | ||||||||||||||||||||||||||
4,145 | Penn Virginia Corporation, (11) | 162,121 | ||||||||||||||||||||||||||
Total Oil, Gas & Consumable Fuels | 2,853,185 | |||||||||||||||||||||||||||
Total Common Stocks (cost $7,355,720) | 6,668,372 | |||||||||||||||||||||||||||
Shares | Description (2), (13) | Value | ||||||||||||||||||||||||||
INVESTMENT COMPANIES – 1.9% | ||||||||||||||||||||||||||||
12,000 | Adams Natural Resources Fund Inc., (4) | $ | 238,080 | |||||||||||||||||||||||||
80,000 | Blackrock Credit Allocation Income Trust IV | 1,065,600 | ||||||||||||||||||||||||||
63,807 | First Trust Strategic High Income Fund II | 821,196 | ||||||||||||||||||||||||||
7,000 | Gabelli Global Gold Natural Resources and Income Trust | 36,470 | ||||||||||||||||||||||||||
147,500 | Invesco Dynamic Credit Opportunities Fund | 1,727,225 | ||||||||||||||||||||||||||
72,500 | Pimco Income Strategy Fund | 846,800 | ||||||||||||||||||||||||||
63,000 | Pioneer Floating Rate Trust | 722,610 | ||||||||||||||||||||||||||
44,421 | Western Asset Emerging Market Debt Fund Incorporated | 690,747 | ||||||||||||||||||||||||||
34,351 | WhiteHorse Finance Incorporated | 460,990 | ||||||||||||||||||||||||||
Total Investment Companies (cost $6,263,777) | 6,609,718 | |||||||||||||||||||||||||||
Shares | Description (2) | Coupon | Ratings (3) | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 1.8% | ||||||||||||||||||||||||||||
Equity Real Estate Investment Trusts – 0.8% | ||||||||||||||||||||||||||||
60,000 | Colony Northstar, Inc. | 7.500% | N/R | $ | 1,509,000 | |||||||||||||||||||||||
50,960 | Colony Northstar, Inc. | 7.125% | N/R | 1,274,509 | ||||||||||||||||||||||||
Total Equity Real Estate Investment Trusts | 2,783,509 | |||||||||||||||||||||||||||
Food Products – 0.3% | ||||||||||||||||||||||||||||
34,685 | CHS Inc. | 6.750% | N/R | 918,112 | ||||||||||||||||||||||||
Household Durables – 0.1% | ||||||||||||||||||||||||||||
63,610 | Hovnanian Enterprises Incorporated | 7.625% | Ca | 490,433 | ||||||||||||||||||||||||
Insurance – 0.2% | ||||||||||||||||||||||||||||
27,310 | AmTrust Financial Services Inc. | 7.250% | N/R | 596,997 | ||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||||||||||||||||||||||
60,000 | Nustar Energy LP, (4) | 8.500% | Ba3 | 1,491,000 | ||||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $6,511,987) |
| 6,280,051 |
NUVEEN | 69 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Shares | Description (2) | Coupon | Ratings (3) | Value | ||||||||||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.6% | ||||||||||||||||||||||||||||
Multi-Utilities – 0.3% | ||||||||||||||||||||||||||||
20,000 | DTE Energy Company | 5.000% | N/R | $ | 1,079,200 | |||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.3% | ||||||||||||||||||||||||||||
29,700 | Anadarko Petroleum Corporation | 7.500% | N/R | 1,029,402 | ||||||||||||||||||||||||
Total Convertible Preferred Securities (cost $2,172,454) | 2,108,602 | |||||||||||||||||||||||||||
Shares | Description (2) | Value | ||||||||||||||||||||||||||
WARRANTS – 0.0% | ||||||||||||||||||||||||||||
Energy – 0.0% | ||||||||||||||||||||||||||||
336,891 | Iona Energy Inc., (6) | $ | — | |||||||||||||||||||||||||
Telecommunication Services – 0.0% | ||||||||||||||||||||||||||||
6,707 | FairPoint Communications Inc., (12) | 34 | ||||||||||||||||||||||||||
Transportation – 0.0% | ||||||||||||||||||||||||||||
8,907 | Jack Cooper Enterprises, Warrants, 144A, (6) | — | ||||||||||||||||||||||||||
Total Warrants (cost $0) | 34 | |||||||||||||||||||||||||||
Principal Amount (000) | Description (2) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||||||
CONVERTIBLE BONDS – 0.0% | ||||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||||||||||
$ | 123 | Golden Close Maritime Corporation Limited | 0.000% | 3/29/22 | N/R | $ | 19 | |||||||||||||||||||||
$ | 123 | Total Convertible Bonds (cost $46) | 19 | |||||||||||||||||||||||||
Total Long-Term Investments (cost $348,815,239) | 333,449,068 | |||||||||||||||||||||||||||
Shares | Description (2) | Coupon | Value | |||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 9.3% |
| |||||||||||||||||||||||||||
Money Market Funds – 9.3% | ||||||||||||||||||||||||||||
32,559,058 | First American Government Obligations Fund, Class X, (14) |
| 1.196% (15) | $ | 32,559,058 | |||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $32,559,058) |
| 32,559,058 | ||||||||||||||||||||||||||
Shares | Description (2) | Coupon | Value | |||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 3.4% | ||||||||||||||||||||||||||||
Money Market Funds – 3.4% | ||||||||||||||||||||||||||||
11,637,062 | First American Treasury Obligations Fund, Class Z | 1.181% (15) | $ | 11,637,062 | ||||||||||||||||||||||||
Total Short-Term Investments (cost $11,637,062) | 11,637,062 | |||||||||||||||||||||||||||
Total Investments (cost $393,011,359) – 108.3% | 377,645,188 | |||||||||||||||||||||||||||
Other Assets Less Liabilities – (8.3)% (16) | (28,859,741 | ) | ||||||||||||||||||||||||||
Net Assets – 100% | $ | 348,785,447 |
70 | NUVEEN |
Investments in Derivatives
Forward Foreign Currency Contracts
Currency Purchased | Notional Amount (Local Currency) | Currency Sold | Notional Amount (Local Currency) | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||
Canadian Dollar | 1,440,000 | U.S. Dollar | 1,120,161 | Goldman Sachs Bank USA | 1/16/18 | $ | 25,788 | |||||||||||||||
U.S. Dollar | 841,441 | Canadian Dollar | 1,080,000 | Goldman Sachs Bank USA | 1/16/18 | (18,020 | ) | |||||||||||||||
U.S. Dollar | 3,334,670 | Canadian Dollar | 4,243,000 | Goldman Sachs Bank USA | 1/16/18 | (41,901 | ) | |||||||||||||||
Total | (34,133 | ) | ||||||||||||||||||||
Total unrealized appreciation on forward foreign currency contracts | $ | 25,788 | ||||||||||||||||||||
Total unrealized depreciation on forward foreign currency contracts | $ | (59,921 | ) |
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S Treasury 10-Year Note | Long | 18 | 3/18 | $ | 2,247,514 | $ | 2,232,844 | $ | (14,670 | ) | $ | 3,656 |
NUVEEN | 71 |
Nuveen High Income Bond Fund (continued)
Portfolio of Investments | December 31, 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) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(2) | All percentages shown in the Portfolio of Investments are based on net assets. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | 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 $31,071,317. |
(5) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
(6) | 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. |
(7) | Perpetual security. Maturity date is not applicable. |
(8) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. |
(9) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate (Reference Rate) plus an assigned fixed rate (Spread). These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
(10) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
(11) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(12) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(13) | A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
(14) | 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. |
(15) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(16) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
CAD | Canadian Dollar |
PIK | Payment-in-kind (“PIK”) security. Depending on the terms of the security, income may be received in the form of cash, securities, or a combination of both. The PIK rate shown, where applicable, represents the annualized rate of the last PIK payment made by the issuer as of the end of the reporting period. |
Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
See accompanying notes to financial statements.
72 | NUVEEN |
Nuveen Inflation Protected Securities Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 98.4% | ||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 86.8% | ||||||||||||||||||||
$ | 5,964 | U.S. Treasury Bonds | 3.875% | 4/15/29 | Aaa | $ | 8,136,949 | |||||||||||||
1,105 | U.S. Treasury Bonds | 2.250% | 8/15/46 | Aaa | 995,631 | |||||||||||||||
3,760 | U.S. Treasury Bonds | 0.875% | 2/15/47 | Aaa | 3,914,235 | |||||||||||||||
2,790 | U.S. Treasury Bonds | 3.000% | 5/15/47 | Aaa | 2,930,082 | |||||||||||||||
400 | U.S. Treasury Bonds, (3) | 2.750% | 11/15/47 | Aaa | 400,206 | |||||||||||||||
3,185 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/18 | Aaa | 3,181,430 | |||||||||||||||
8,421 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/19 | Aaa | 8,403,479 | |||||||||||||||
2,470 | U.S. Treasury Inflation Indexed Obligations | 1.375% | 1/15/20 | Aaa | 2,534,627 | |||||||||||||||
34,022 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/20 | Aaa | 33,958,586 | |||||||||||||||
3,048 | U.S. Treasury Inflation Indexed Obligations | 1.250% | 7/15/20 | Aaa | 3,148,076 | |||||||||||||||
21,537 | U.S. Treasury Inflation Indexed Obligations | 1.125% | 1/15/21 | Aaa | 22,185,401 | |||||||||||||||
32,096 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/21 | Aaa | 31,973,012 | |||||||||||||||
12,597 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 7/15/21 | Aaa | 12,842,771 | |||||||||||||||
28,335 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/22 | Aaa | 28,230,654 | |||||||||||||||
22,593 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/22 | Aaa | 22,440,454 | |||||||||||||||
19,189 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/22 | Aaa | 19,170,536 | |||||||||||||||
29,403 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/23 | Aaa | 29,187,122 | |||||||||||||||
16,747 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/23 | Aaa | 16,880,197 | |||||||||||||||
23,754 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 1/15/24 | Aaa | 24,181,779 | |||||||||||||||
11,666 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/24 | Aaa | 11,535,059 | |||||||||||||||
58,126 | U.S. Treasury Inflation Indexed Obligations | 0.250% | 1/15/25 | Aaa | 53,513,364 | |||||||||||||||
4,393 | U.S. Treasury Inflation Indexed Obligations | 2.000% | 1/15/26 | Aaa | 4,944,490 | |||||||||||||||
55,107 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 1/15/26 | Aaa | 56,023,929 | |||||||||||||||
18,502 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/26 | Aaa | 18,090,331 | |||||||||||||||
4,587 | U.S. Treasury Inflation Indexed Obligations | 2.375% | 1/15/27 | Aaa | 5,369,808 | |||||||||||||||
10,467 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 1/15/27 | Aaa | 10,398,363 | |||||||||||||||
3,933 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/27 | Aaa | 3,914,406 | |||||||||||||||
1,760 | U.S. Treasury Inflation Indexed Obligations | 1.750% | 1/15/28 | Aaa | 1,979,816 | |||||||||||||||
1,563 | U.S. Treasury Inflation Indexed Obligations | 3.625% | 4/15/28 | Aaa | 2,052,381 | |||||||||||||||
2,866 | U.S. Treasury Inflation Indexed Obligations | 2.500% | 1/15/29 | Aaa | 3,479,712 | |||||||||||||||
3,652 | U.S. Treasury Inflation Indexed Obligations | 2.125% | 2/15/40 | Aaa | 4,757,917 | |||||||||||||||
5,682 | U.S. Treasury Inflation Indexed Obligations | 2.125% | 2/15/41 | Aaa | 7,455,082 | |||||||||||||||
20,064 | U.S. Treasury Inflation Indexed Obligations | 0.750% | 2/15/42 | Aaa | 20,289,540 | |||||||||||||||
21,586 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 2/15/43 | Aaa | 21,154,702 | |||||||||||||||
4,958 | U.S. Treasury Inflation Indexed Obligations | 1.375% | 2/15/44 | Aaa | 5,732,937 |
NUVEEN | 73 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (continued) | ||||||||||||||||||||
$ | 11,894 | U.S. Treasury Inflation Indexed Obligations | 0.750% | 2/15/45 | Aaa | $ | 11,973,630 | |||||||||||||
19,789 | U.S. Treasury Notes | 0.375% | 7/15/25 | Aaa | 19,830,750 | |||||||||||||||
$ | 532,011 | Total U.S. Government and Agency Obligations (cost $531,462,177) | 537,191,444 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 8.3% | ||||||||||||||||||||
$ | 3,000 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | $ | 2,457,870 | |||||||||||||
2,000 | Cabela’s Master Credit Card Trust, Series 2013-2A A2, 144A | 2.170% | 8/16/21 | AAA | 2,003,962 | |||||||||||||||
2,208 | Carmax Auto Owners Trust, Series 2016-4 | 1.210% | 11/15/19 | Aaa | 2,203,784 | |||||||||||||||
2,654 | Colony American Homes Trust 2014-1A, 144A, (1-Month LIBOR reference rate + 1.150% spread), (4) | 2.709% | 5/17/31 | Aaa | 2,661,103 | |||||||||||||||
899 | Commercial Mortgage Pass Through Certificates Series 2012-CR4 | 1.801% | 10/15/45 | AAA | 898,274 | |||||||||||||||
2,820 | DB Master Finance LLC, Series 2015-1A, 144A | 3.980% | 2/20/45 | BBB | 2,878,657 | |||||||||||||||
2,968 | Dominos Pizza Master Issuer LLC, Series 2017-1A, 144A | 3.082% | 7/25/47 | BBB+ | 2,934,979 | |||||||||||||||
2,205 | Driven Brands Funding LLC, HONK 2015-1A, 144A | 5.216% | 7/20/45 | BBB– | 2,278,448 | |||||||||||||||
1,550 | Finance of America Structured Security Trust, Series 2017-HB1, 144A | 3.624% | 11/25/27 | Baa2 | 1,546,822 | |||||||||||||||
2,809 | Flagstar Mortgage Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 2,839,360 | |||||||||||||||
2,050 | Goldman Sachs Mortgage Securities Trust, Mortgage Pass Through Certificates, Series 2015-GC32 | 3.345% | 7/10/48 | BBB– | 1,695,652 | |||||||||||||||
629 | Honor Automobile Trust, Series 2016-1A, 144A | 2.940% | 11/15/19 | A | 631,023 | |||||||||||||||
1,429 | Invitation Homes Trust 2017-SFR3, 144A (1-Month LIBOR reference rate + 0.850% spread), (4) | 2.406% | 12/17/36 | Aaa | 1,433,590 | |||||||||||||||
2,743 | Jimmy Johns Funding LLC, Series 2017-1A, 144A | 3.610% | 7/30/47 | BBB | 2,753,686 | |||||||||||||||
2,230 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, 144A | 4.755% | 6/15/47 | BBB– | 1,964,849 | |||||||||||||||
2,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, 144A | 4.241% | 4/15/48 | BBB– | 1,724,354 | |||||||||||||||
1,500 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C25 | 3.068% | 10/15/48 | BBB– | 1,217,472 | |||||||||||||||
2,350 | New Residential Advance Receivable Trust , Series 2016-T1, 144A | 4.377% | 6/15/49 | BBB | 2,349,823 | |||||||||||||||
1,000 | New Residential Advance Receivable Trust Series 2016-T2, 144A | 4.005% | 10/15/49 | BBB | 992,596 | |||||||||||||||
2,565 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 4.002% | 2/15/51 | BBB | 2,551,381 | |||||||||||||||
2,529 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2017-6A, 144A | 4.000% | 8/27/57 | Aaa | 2,594,608 | |||||||||||||||
447 | OneMain Direct Auto Receivables Trust, Series 2016-1, 144A | 2.040% | 1/15/21 | Aaa | 446,745 | |||||||||||||||
1,488 | Sequoia Mortgage Trust, Mortgage Pass Through Certificates, Series 2017-CH2, 144A | 4.000% | 12/25/47 | Aaa | 1,514,714 | |||||||||||||||
3,190 | Shellpoint Co-Originator Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 3,271,080 | |||||||||||||||
2,000 | TCF Auto Receivables Owner trust, Series 2015-2A, 144A | 2.550% | 4/15/21 | AAA | 2,002,067 | |||||||||||||||
1,580 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-C30, 144A | 4.497% | 9/15/58 | BBB– | 1,419,700 | |||||||||||||||
$ | 52,843 | Total Asset-Backed and Mortgage-Backed Securities (cost $50,748,832) | 51,266,599 |
74 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 2.5% | ||||||||||||||||||||
Airlines – 0.1% | ||||||||||||||||||||
$ | 354 | American Airlines Inc., Pass Through Trust 2013-2B | 5.600% | 7/15/20 | BBB– | $ | 365,537 | |||||||||||||
Auto Components – 0.1% | ||||||||||||||||||||
300 | American & Axle Manufacturing Inc., (3) | 6.625% | 10/15/22 | BB– | 311,250 | |||||||||||||||
300 | Tenneco Inc. | 5.375% | 12/15/24 | BB+ | 314,250 | |||||||||||||||
600 | Total Auto Components | 625,500 | ||||||||||||||||||
Automobiles – 0.1% | ||||||||||||||||||||
465 | General Motors Corporation | 4.000% | 4/01/25 | BBB | 477,420 | |||||||||||||||
Banks – 0.0% | ||||||||||||||||||||
170 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 181,050 | |||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||
250 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB | 262,104 | |||||||||||||||
Chemicals – 0.1% | ||||||||||||||||||||
515 | CF Industries Inc., (3) | 3.450% | 6/01/23 | BB+ | 507,919 | |||||||||||||||
250 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 257,187 | |||||||||||||||
765 | Total Chemicals | 765,106 | ||||||||||||||||||
Commercial Services & Supplies – 0.1% | ||||||||||||||||||||
512 | Covanta Energy Corporation, Synthetic Letter of Credit | 6.375% | 10/01/22 | B1 | 523,520 | |||||||||||||||
400 | R.R. Donnelley & Sons Company | 7.875% | 3/15/21 | B | 416,000 | |||||||||||||||
912 | Total Commercial Services & Supplies | 939,520 | ||||||||||||||||||
Construction & Engineering – 0.1% | ||||||||||||||||||||
500 | AECOM Technology Corporation | 5.750% | 10/15/22 | BB | 521,250 | |||||||||||||||
Construction Materials – 0.1% | ||||||||||||||||||||
300 | Cemex SAB de CV, 144A | 5.700% | 1/11/25 | BB | 316,500 | |||||||||||||||
130 | Norbord Inc., 144A | 5.375% | 12/01/20 | BB+ | 137,150 | |||||||||||||||
430 | Total Construction Materials | 453,650 | ||||||||||||||||||
Containers & Packaging – 0.0% | ||||||||||||||||||||
175 | Graphic Packaging International Inc. | 4.875% | 11/15/22 | BB+ | 185,938 | |||||||||||||||
Diversified Telecommunication Services – 0.1% | ||||||||||||||||||||
400 | CenturyLink Inc. | 5.625% | 4/01/20 | BB | 403,000 | |||||||||||||||
200 | CenturyLink Inc., (3) | 6.750% | 12/01/23 | BB | 196,000 | |||||||||||||||
600 | Total Diversified Telecommunication Services | 599,000 | ||||||||||||||||||
Equity Real Estate Investment Trusts – 0.6% | ||||||||||||||||||||
200 | Realogy Group LLC / Realogy Co-Issuer Corporation, 144A | 5.250% | 12/01/21 | B+ | 207,500 | |||||||||||||||
3,060 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 3,058,575 | |||||||||||||||
400 | Vereit Operating Partnership LP | 3.000% | 2/06/19 | BBB– | 401,895 | |||||||||||||||
3,660 | Total Equity Real Estate Investment Trusts | 3,667,970 |
NUVEEN | 75 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Health Care Providers & Services – 0.4% | ||||||||||||||||||||
$ | 200 | Community Health Systems, Inc., (3) | 5.125% | 8/01/21 | Ba3 | $ | 180,000 | |||||||||||||
500 | HCA Inc. | 4.250% | 10/15/19 | BBB– | 510,625 | |||||||||||||||
1,715 | Mayo Clinic Rochester | 3.774% | 11/15/43 | AA | 1,736,505 | |||||||||||||||
2,415 | Total Health Care Providers & Services | 2,427,130 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||
475 | 1011778 BC ULC/New Red Finance Inc., 144A | 4.250% | 5/15/24 | Ba3 | 473,812 | |||||||||||||||
Media – 0.1% | ||||||||||||||||||||
200 | Charter Communications, CCO Holdings LLC | 5.125% | 2/15/23 | BB+ | 204,500 | |||||||||||||||
300 | Dish DBS Corporation | 4.250% | 4/01/18 | Ba3 | 301,125 | |||||||||||||||
200 | SFR Group SA, 144A | 6.000% | 5/15/22 | B+ | 202,500 | |||||||||||||||
700 | Total Media | 708,125 | ||||||||||||||||||
Metals & Mining – 0.2% | ||||||||||||||||||||
470 | Freeport McMoRan, Inc. | 3.875% | 3/15/23 | BB+ | 467,650 | |||||||||||||||
550 | Hudbay Minerals, Inc., 144A | 7.250% | 1/15/23 | B+ | 583,000 | |||||||||||||||
1,020 | Total Metals & Mining | 1,050,650 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||
150 | Targa Resources Inc. | 4.250% | 11/15/23 | BB– | 148,312 | |||||||||||||||
Road & Rail – 0.1% | ||||||||||||||||||||
375 | The Hertz Corporation, 144A | 7.625% | 6/01/22 | BB– | 392,813 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 0.1% | ||||||||||||||||||||
500 | NCR Corporation | 5.000% | 7/15/22 | BB | 508,750 | |||||||||||||||
Wireless Telecommunication Services – 0.1% | ||||||||||||||||||||
200 | Softbank Corporation, 144A | 4.500% | 4/15/20 | BB+ | 204,306 | |||||||||||||||
200 | Sprint Communications Inc., 144A | 7.000% | 3/01/20 | BB | 214,000 | |||||||||||||||
400 | Telecom Italia SpA, 144A | 5.303% | 5/30/24 | BBB– | 427,000 | |||||||||||||||
800 | Total Wireless Telecommunication Services | 845,306 | ||||||||||||||||||
$ | 15,316 | Total Corporate Bonds (cost $15,407,385) | 15,598,943 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 0.5% | ||||||||||||||||||||
Tunisia – 0.5% | ||||||||||||||||||||
$ | 3,000 | Tunisia Government AID Bonds | 1.416% | 8/05/21 | N/R | $ | 2,900,700 | |||||||||||||
$ | 3,000 | Total Sovereign Debt (cost $3,000,000) | 2,900,700 |
76 | NUVEEN |
Principal Amount (000) | Description (1) | Optional Call Provisions (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.3% | ||||||||||||||||||||
National – 0.3% | ||||||||||||||||||||
$ | 1,500 | Quebec Province, 7.500%, 7/15/23 | No Opt. Call | Aa2 | $ | 1,850,871 | ||||||||||||||
$ | 1,500 | Total Municipal Bonds (cost $1,839,223) | 1,850,871 | |||||||||||||||||
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.0% | ||||||||||||||||||||
Banks – 0.0.% | ||||||||||||||||||||
200 | Bank of America Corporation | 7.250% | BBB– | $ | 263,800 | |||||||||||||||
Total Convertible Preferred Securities (cost $174,350) | 263,800 | |||||||||||||||||||
Total Long-Term Investments (cost $602,631,967) | 609,072,357 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.3% |
| |||||||||||||||||||
Money Market Funds – 0.3% | ||||||||||||||||||||
1,642,688 | First American Government Obligations Fund, Class X, (7) | 1.196% (6) | $ | 1,642,688 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,642,688) |
| 1,642,688 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 1.3% | ||||||||||||||||||||
Money Market Funds – 1.3% | ||||||||||||||||||||
8,108,769 | First American Treasury Obligations Fund, Class Z | 1.181% (6) | $ | 8,108,769 | ||||||||||||||||
Total Short-Term Investments (cost $8,108,769) | 8,108,769 | |||||||||||||||||||
Total Investments (cost $612,383,424) – 100.0% | 618,823,814 | |||||||||||||||||||
Other Assets Less Liabilities – 0.0% (8) | 300,311 | |||||||||||||||||||
Net Assets – 100% | $ | 619,124,125 |
Investments in Derivatives
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury 2-Year Note | �� | Long | 112 | 3/18 | $ | 24,026,135 | $ | 23,980,250 | $ | (45,885 | ) | $ | 7,000 | |||||||||||||||
U.S. Treasury 5-Year Note | Short | (188 | ) | 3/18 | (21,912,757 | ) | (21,838,844 | ) | 73,913 | (15,275 | ) | |||||||||||||||||
U.S. Treasury Long Bond | Short | (61 | ) | 3/18 | (9,303,108 | ) | (9,333,000 | ) | (29,892 | ) | (17,156 | ) | ||||||||||||||||
U.S. Treasury Ultra 10-Year Note | Short | (53 | ) | 3/18 | (7,106,208 | ) | (7,078,812 | ) | 27,396 | (14,906 | ) | |||||||||||||||||
U.S. Treasury Ultra Bond | Long | 51 | 3/18 | 8,495,007 | 8,550,469 | 55,462 | 22,203 | |||||||||||||||||||||
Total | $ | (5,800,931 | ) | $ | (5,719,937 | ) | $ | 80,994 | $ | (18,134 | ) | |||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 29,203 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (47,337 | ) |
* | The aggregate notional amount of long and short positions is $24,026,135 and $(29,827,066), respectively. |
NUVEEN | 77 |
Nuveen Inflation Protected Securities Fund (continued)
Portfolio of Investments | December 31, 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) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $1,595,375. |
(4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(6) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(7) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
LIBOR | London Inter-Bank Offered Rate |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
See accompanying notes to financial statements.
78 | NUVEEN |
Nuveen Short Term Bond Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 96.6% | ||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 46.4% | ||||||||||||||||||||
$ | 2,020 | 321 Henderson Receivables LLC, Series 2005-1A, 144A (1-Month LIBOR reference rate + 0.230% spread), (3) | 1.789% | 11/15/40 | AAA | $ | 1,922,037 | |||||||||||||
1,541 | 321 Henderson Receivables LLC, Series 2006-4A,144A, (1-Month LIBOR reference rate + 0.200% spread), (3) | 1.759% | 12/15/41 | AAA | 1,504,480 | |||||||||||||||
448 | ACE Securities Corporation, Manufactured Housing Trust Series 2003-MH1, 144A | 6.500% | 8/15/30 | AA | 506,576 | |||||||||||||||
4,198 | American Express Credit Account Master Trust, Series 2013-1 (1-Month LIBOR reference rate + 0.420% spread), (3) | 1.979% | 2/16/21 | Aaa | 4,205,956 | |||||||||||||||
2,700 | American Express Credit Account Master Trust, Series 2017-6 | 2.040% | 5/15/23 | AAA | 2,686,704 | |||||||||||||||
2,649 | AmeriCold LLC Trust, Series 2010,144A, (1-Month LIBOR reference rate + 1.500% spread), (3) | 3.059% | 1/14/29 | AAA | 2,651,652 | |||||||||||||||
214 | Amortizing Residential Collateral Trust Series 2002-BC4 M1 (1-Month LIBOR reference rate + 1.050% spread), (3) | 2.611% | 7/25/32 | A3 | 214,239 | |||||||||||||||
2,739 | Asset Backed Securities Corp Home Equity Loan Trust, Series 2002-HE1 (1-Month LIBOR reference rate + 1.650% spread), (3) | 3.209% | 3/15/32 | BBB | 2,723,103 | |||||||||||||||
2,915 | Bank of the West Auto Trust, Series 2017-1, 144A | 2.110% | 1/15/23 | AAA | 2,899,025 | |||||||||||||||
3,000 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP, 144A | 4.284% | 9/10/28 | A– | 3,062,691 | |||||||||||||||
2,375 | Cabela’s Master Credit Card Trust, Series 2014-2 (1-Month LIBOR reference rate + 0.450% spread), (3) | 2.009% | 7/15/22 | AAA | 2,383,109 | |||||||||||||||
2,557 | California Republic Auto Receivables Trust, Series 2014-4 | 1.840% | 6/15/20 | AAA | 2,555,695 | |||||||||||||||
4,155 | Capital One Multi Asset Execution Trust, Series 2014-A3 (1-Month LIBOR reference rate + 0.380% spread), (3) | 1.939% | 1/18/22 | AAA | 4,168,420 | |||||||||||||||
3,928 | Capital One Multi Asset Execution Trust, Series 2015-A5 | 1.600% | 5/17/21 | AAA | 3,923,632 | |||||||||||||||
2,930 | Capital One Multi Asset Execution Trust, Series 2016-A1 (1-Month LIBOR reference rate + 0.450% spread), (3) | 2.009% | 2/15/22 | AAA | 2,943,876 | |||||||||||||||
1,346 | CarMax Auto Owner Trust, Series 2017-1 A2 | 1.540% | 2/18/20 | Aaa | 1,344,487 | |||||||||||||||
3,300 | CarNow Auto Receivables Trust 2017-1A, 144A | 2.920% | 9/15/22 | A | 3,298,678 | |||||||||||||||
2,379 | Chase Issuance Trust, Series 2013-A9 (1-Month LIBOR reference rate + 0.420% spread), (3) | 1.979% | 11/16/20 | AAA | 2,385,458 | |||||||||||||||
2,000 | Chase Issuance Trust, Series 2015-A7 | 1.620% | 7/15/20 | AAA | 1,998,400 | |||||||||||||||
4,700 | Chase Issuance Trust, Series 2016-A1 (1-Month LIBOR reference rate + 0.410% spread), (3) | 1.969% | 5/17/21 | AAA | 4,718,828 | |||||||||||||||
4,000 | Chase Issuance Trust, Series 2016-A3 (1-Month LIBOR reference rate + 0.550% spread), (3) | 2.109% | 6/15/23 | AAA | 4,045,316 | |||||||||||||||
1,905 | CIG Auto Receivables Trust, Series 2017- 1A, 144A | 2.710% | 5/15/23 | A3 | 1,901,902 | |||||||||||||||
1,444 | CITI Held for Asset Issuance, Series 2015-PM3, 144A | 4.310% | 5/16/22 | A1 | 1,449,427 | |||||||||||||||
13 | Citicorp Mortgage Securities I, REMIC Pass-Through Certificates, Series 2007-9 | 5.500% | 12/25/22 | Baa2 | 13,122 | |||||||||||||||
83 | Citicorp Mortgage Securities Inc., REMIC Pass-Through Certificates, Series 2006-1 5A1 | 5.500% | 2/25/26 | Ba2 | 83,682 |
NUVEEN | 79 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,000 | Cold Storage Trust, Commercial Mortgage Backed Securities, Series 2017-ICE3, 144A, (1-Month LIBOR reference rate + 1.000% spread), (3) | 2.559% | 4/15/36 | AAA | $ | 2,004,953 | |||||||||||||
1,707 | Colony American Homes Trust 2015-1A, 144A, (1-Month LIBOR reference rate + 1.200% spread), (3) | 2.754% | 7/17/32 | Aaa | 1,712,906 | |||||||||||||||
2,960 | Colony American Homes Trust 2015-1A, 144A, (1-Month LIBOR reference rate + 1.950% spread), (3) | 3.504% | 7/17/32 | A2 | 2,979,879 | |||||||||||||||
2,000 | Colony American Homes Trust 2014-1A, 144A, (1-Month LIBOR reference rate + 1.350% spread), (3) | 2.909% | 5/17/31 | Aaa | 2,004,642 | |||||||||||||||
2,000 | Colony Starwood Homes, Series 2016-1A,144A, (1-Month LIBOR reference rate + 3.100% spread), (3) | 4.659% | 7/17/33 | Baa2 | 2,049,401 | |||||||||||||||
1,505 | Commercial Mortgage Pass-Through Certificates, Series 2016-SAVA, 144A, (1-Month LIBOR reference rate + 2.300% spread), (3) | 3.854% | 10/15/34 | AA– | 1,508,727 | |||||||||||||||
1,114 | Conns Receivables Funding Trust II, Series 2017-A, 144A | 2.730% | 7/15/19 | BBB | 1,115,127 | |||||||||||||||
1,975 | Conns Receivables Funding Trust II, Series 2017-B, 144A | 2.730% | 7/15/20 | BBB | 1,974,916 | |||||||||||||||
1,750 | CPS Auto Trust, 144A | 5.540% | 11/15/19 | Aa3 | 1,781,610 | |||||||||||||||
2,050 | Credit Suisse Commercial Mortgage Trust, 2015-2, 144A | 3.000% | 2/25/45 | AAA | 2,050,664 | |||||||||||||||
322 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-23 | 5.750% | 9/25/33 | AA+ | 336,609 | |||||||||||||||
2,594 | Credit Suisse Mortgage Trust 2017-HL2, 144A | 3.500% | 10/25/47 | AAA | 2,618,232 | |||||||||||||||
2,007 | Credit-Based Asset Servicing and Securitization Pool 2007-SP1, 144A | 5.751% | 12/25/37 | AA | 2,059,570 | |||||||||||||||
1,971 | Dominos Pizza Master Issuer LLC, Series 2015-1A, 144A | 3.484% | 10/25/45 | BBB+ | 1,977,844 | |||||||||||||||
750 | DT Auto Owner Trust, Series 2016-4A, 144A | 2.740% | 10/17/22 | A | 749,258 | |||||||||||||||
2,114 | Exeter Auto Receivables Trust, Series 2013-2A, 144A | 6.810% | 8/17/20 | AA | 2,132,479 | |||||||||||||||
431 | Fannie Mae Connecticut Avenue Securities , Series 2016-C03 (1-Month LIBOR reference rate + 2.220% spread), (3) | 3.761% | 10/25/28 | BBB– | 435,367 | |||||||||||||||
195 | Fannie Mae Mortgage Interest Strips | 5.000% | 9/25/24 | N/R | 8,894 | |||||||||||||||
2,558 | Fannie Mae Mortgage Pool FN MA2869 | 2.500% | 1/01/27 | N/R | 2,567,273 | |||||||||||||||
2,995 | Fannie Mae Mortgage Pool FN MA3220 | 2.500% | 12/01/27 | N/R | 3,013,595 | |||||||||||||||
10 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates | 5.500% | 9/25/22 | N/R | 10,332 | |||||||||||||||
161 | Fannie Mae Real Estate Mortgage Investment Conduit, Pass Through Certificates (1-Month LIBOR reference rate + 0.300% spread), (3) | 1.861% | 11/25/34 | N/R | 161,501 | |||||||||||||||
93 | Fannie Mae REMIC Pass-Through Certificates | 2.750% | 6/25/20 | N/R | 93,865 | |||||||||||||||
1,395 | Fannie Mae, Connecticut Avenue Securities, Series 2016-C07 (1-Month LIBOR reference rate + 1.300% spread), (3) | 2.861% | 5/25/29 | BBB– | 1,404,271 | |||||||||||||||
944 | FDIC Structures Sale Guaranteed Notes, Series 2010-S1, 144A | 3.250% | 4/25/38 | N/R | 945,816 | |||||||||||||||
2 | Federal Home Loan Mortgage Corporation, REMIC | 6.000% | 12/15/20 | N/R | 2,521 | |||||||||||||||
1,396 | Flagstar Mortgage Trust, Series 2017-1, 144A | 3.500% | 3/25/47 | Aaa | 1,412,742 | |||||||||||||||
2,481 | Flagstar Mortgage Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 2,507,299 | |||||||||||||||
2,775 | Ford Credit Auto Owner Trust 2017-C | 2.010% | 3/15/22 | AAA | 2,766,381 | |||||||||||||||
30 | Freddie Mac Mortgage Pool, Various FG M30035 | 4.500% | 4/01/22 | N/R | 30,232 | |||||||||||||||
3,030 | Freddie Mac Mortgage Trust, 2011-K704 B 144A | 4.536% | 10/25/30 | A1 | 3,060,477 |
80 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 4,015 | Freddie Mac Mortgage Trust 2011-K702 B, 144A | 4.793% | 4/25/44 | Aa3 | $ | 4,016,018 | |||||||||||||
2,000 | Freddie Mac Mortgage Trust 2013-K712 C, 144A | 3.362% | 5/25/45 | AA | 2,002,767 | |||||||||||||||
1,556 | Freddie Mac Mortgage Trust 2013-KF02 B, 144A, (1-Month LIBOR reference rate + 3.000% spread), (3) | 4.564% | 12/25/45 | Baa1 | 1,562,008 | |||||||||||||||
1,995 | Freddie Mac Mortgage Trust 2012-K707 B, 144A | 3.883% | 1/25/47 | Aa2 | 2,015,932 | |||||||||||||||
1,805 | Freddie Mac Mortgage Trust 2011-K10 B, 144A | 4.622% | 11/25/49 | A | 1,877,292 | |||||||||||||||
1,300 | Freddie Mac MultiFamily Mortgage Trust, Structured Pass Through Certificates, Series 2012-K710, 144A | 3.812% | 6/25/47 | A– | 1,320,825 | |||||||||||||||
1,926 | Freddie Mac Multifamily Structured Pass- Through Certificates FHMS K029 | 2.839% | 10/25/22 | Aaa | 1,948,765 | |||||||||||||||
1,680 | Freddie Mac Multifamily Structured Pass- Through Certificates FHMS K068 (1-Month LIBOR + 0.200% spread), (3) | 1.780% | 10/25/19 | N/R | 1,682,130 | |||||||||||||||
241 | Freddie Mac Multifamily Structured Pass- Through Certificates FHMS K068 (1-Month LIBOR + 0.400 spread), (3) | 1.959% | 12/15/20 | N/R | 241,952 | |||||||||||||||
2,416 | Freddie Mac MultiFamily Structured Pass-Through Certificates K722 A1 | 2.183% | 5/25/22 | AAA | 2,393,400 | |||||||||||||||
2,235 | Freddie Mac MultiFamily Structured Pass-Through Certificates (1-Month LIBOR reference rate + 0.700% spread), (3) | 2.264% | 11/25/22 | N/R | 2,245,799 | |||||||||||||||
1,616 | Freddie Mac MultiFamily Structured Pass-Through Certificates K034 A1 | 2.669% | 2/25/23 | Aaa | 1,630,473 | |||||||||||||||
5,515 | Freddie Mac MultiFamily Structured Pass-Through Certificates K052 A1 | 2.598% | 1/25/25 | Aaa | 5,543,679 | |||||||||||||||
2,215 | Freddie Mac MultiFamily Structured Pass-Through Certificates K726 A1 | 2.596% | 8/25/23 | AAA | 2,222,722 | |||||||||||||||
3,307 | Freddie Mac Notes K031 A1 | 2.778% | 9/25/22 | Aaa | 3,341,630 | |||||||||||||||
495 | GAHR Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-NRF, 144A | 2.778% | 12/15/34 | AAA | 495,446 | |||||||||||||||
2,135 | GLS Auto Receivables Trust 2017-1A, 144A | 2.670% | 4/15/21 | A | 2,136,207 | |||||||||||||||
2,625 | GM Financial Consumers Auto Receivables Trust 2017-2A, 144A | 1.610% | 5/18/20 | AAA | 2,620,202 | |||||||||||||||
822 | Goldman Sachs Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2010-C1, 144A | 3.679% | 8/10/43 | Aaa | 834,057 | |||||||||||||||
13 | Government National Mortgage Association, Guaranteed REMIC Pass-Through Securities and MX Securities Trust | 4.500% | 5/16/38 | N/R | 13,349 | |||||||||||||||
2,025 | GP Portfolio Trust 2014-GPP A, 144A, (1-Month LIBOR reference rate + 3.000% spread), (3) | 4.559% | 2/15/27 | BBB– | 2,029,837 | |||||||||||||||
1,044 | Honor Automobile Trust, Series 2016-1A, 144A | 2.940% | 11/15/19 | A | 1,046,755 | |||||||||||||||
546 | IMC Home Mortgage Company, Home Equity Loan Pass-Through Certificates, Series 1998-3 | 6.720% | 8/20/29 | AA | 545,963 | |||||||||||||||
2,479 | Invitation Homes Trust 2015-SFR3, 144A, (1-Month LIBOR reference rate + 1.300% spread), (3) | 2.859% | 8/17/32 | Aaa | 2,494,457 | |||||||||||||||
1,314 | Invitation Homes Trust 2017-SFR3, 144A, (1-Month LIBOR reference rate + 0.850% spread), (3) | 2.406% | 12/17/36 | Aaa | 1,318,703 | |||||||||||||||
2,494 | Jimmy Johns Funding LLC, Series 2017-1A, 144A | 3.610% | 7/30/47 | BBB | 2,503,351 | |||||||||||||||
3,407 | JP Morgan Chase Commercial Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2010-C2 A3, 144A | 4.070% | 11/15/43 | AAA | 3,525,255 | |||||||||||||||
2,113 | JP Morgan Chase Commercial Mortgage Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 2011-C3 A1, 144A | 4.717% | 2/15/46 | AAA | 2,227,544 |
NUVEEN | 81 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,970 | JP Morgan Chase Commercial Mortgage Securities Corporation, Pass Through Certificates Trust 2017-MAUI, 144A, (1-Month LIBOR reference rate + 0.830% spread), (3) | 2.383% | 7/15/34 | AAA | $ | 2,971,874 | |||||||||||||
2,419 | JP Morgan Mortgage Trust, Series 2017-1, 144A | 3.500% | 1/25/47 | Aaa | 2,453,039 | |||||||||||||||
2,536 | JP Morgan Mortgage Trust, Series 2017-2, 144A | 3.500% | 5/25/47 | Aaa | 2,573,402 | |||||||||||||||
465 | Master Resecuritization Trust 2009-1, 144A | 6.000% | 10/25/36 | AA | 469,783 | |||||||||||||||
2,329 | Morgan Stanley Capital I Trust, Commercial Mortgage Pass-Through Certificates, Series 2017-CLS, 144A, (1-Month LIBOR reference rate + 0.700% spread), (3) | 2.259% | 11/15/34 | Aaa | 2,330,830 | |||||||||||||||
117 | Murray Hill Marketplace Trust, Series 2016-LC1, 144A | 4.190% | 11/25/22 | N/R | 117,625 | |||||||||||||||
1,000 | New Residential Advance Receivable Trust , Series 2016-T1, 144A | 4.377% | 6/15/49 | BBB | 999,925 | |||||||||||||||
600 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 3.214% | 2/15/51 | AAA | 600,515 | |||||||||||||||
1,798 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2014-2A, 144A | 3.750% | 5/25/54 | AAA | 1,824,862 | |||||||||||||||
1,085 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2014-3A, 144A | 3.750% | 11/25/54 | AAA | 1,107,894 | |||||||||||||||
1,818 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2015-A1, 144A | 3.750% | 5/28/52 | Aaa | 1,859,574 | |||||||||||||||
2,001 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2016-1A, 144A | 3.750% | 3/25/56 | AAA | 2,035,920 | |||||||||||||||
2,284 | New Residential Mortgage Loan Trust, Series 2017-1A, 144A | 4.000% | 2/25/57 | AAA | 2,351,496 | |||||||||||||||
3,185 | OMART Receivables Trust, Series 2016-T2, 144A | 2.722% | 8/16/49 | AAA | 3,164,616 | |||||||||||||||
2,600 | OMART Receivables Trust, Series 2017-T1, 144A | 2.499% | 9/15/48 | AAA | 2,601,931 | |||||||||||||||
1,112 | OneMain Direct Auto Receivables Trust, Series 2016-1, 144A | 2.040% | 1/15/21 | Aaa | 1,112,319 | |||||||||||||||
531 | Opteum Mortgage Acceptance Corporation, Asset Backed Pass-Through Certificates, Series 2005-1 (1-Month LIBOR reference rate + 0.855% spread), (3) | 2.416% | 2/25/35 | AAA | 530,673 | |||||||||||||||
1,601 | OWS Structured Asset Trust, Series 2016-NPL1, 144A | 3.750% | 7/25/56 | N/R | 1,613,173 | |||||||||||||||
3,279 | Pretium Mortgage Credit Partners I, Series 2017-NPL1, 144A | 3.500% | 4/29/32 | N/R | 3,284,479 | |||||||||||||||
2,216 | Progress Residential Trust, Series 2017 -SFRI, 144A | 2.768% | 8/17/34 | Aaa | 2,198,771 | |||||||||||||||
2,995 | Prosper Marketplace Issuance Trust, Series 2017-3A, 144A | 2.360% | 11/15/23 | A– | 2,996,008 | |||||||||||||||
321 | RBSSP Resecuritization Trust 2009-10, 144A (1-Month LIBOR reference rate + 0.100% spread), (3) | 1.652% | 3/26/37 | N/R | 147,455 | |||||||||||||||
1,311 | Sequoia Mortgage Trust, Mortgage Pass Through Certificates, Series 2017-CH2, 144A | 4.000% | 12/25/47 | Aaa | 1,334,152 | |||||||||||||||
2,580 | Structured Agency Credit Risk Notes, Series 2017-DNA3 (1-Month LIBOR reference rate + 0.750% spread), (3) | 2.311% | 3/25/30 | BBB– | 2,589,730 | |||||||||||||||
2,409 | Structured Agency Credit Risk Notes, Series 2017-HQA2 (1-Month LIBOR reference rate + 0.800% spread), (3) | 2.361% | 12/25/29 | BBB– | 2,416,450 | |||||||||||||||
2,950 | Structured Agency Credit Risk Notes, Series 2017-HQA3 (1-Month LIBOR reference rate + 0.550% spread), (3) | 2.111% | 4/25/30 | Baa3 | 2,949,976 | |||||||||||||||
2,179 | Sunset Mortgage Loan Company, Series 2017-NPL1, 144A | 3.500% | 6/15/47 | N/R | 2,169,922 | |||||||||||||||
3,080 | Synchrony Credit Card Master Note Trust, Series 2015-3 | 1.740% | 9/15/21 | AAA | 3,076,197 |
82 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 2,750 | Synchrony Credit Card Master Note Trust, Series 2016-1 | 2.040% | 3/15/22 | Aaa | $ | 2,749,064 | |||||||||||||
2,469 | Taco Bell Funding LLC, Series 2016-1A, 144A | 3.832% | 5/25/46 | BBB | 2,502,251 | |||||||||||||||
2,890 | TCF Auto Receivables Owner Trust, Series 2016-1A, 144A | 1.710% | 4/15/21 | AAA | 2,880,511 | |||||||||||||||
3,000 | Toyota Auto Receivables Owner Trust, Series 2017-B | 2.050% | 9/15/22 | AAA | 2,984,495 | |||||||||||||||
2,170 | Tricon American Homes Trust, Series 2017-SFRI, 144A | 2.716% | 9/17/34 | Aaa | 2,142,829 | |||||||||||||||
2,500 | US Residential Opportunity Fund Trust, Series 2017-1III, 144A | 3.352% | 11/27/37 | N/R | 2,492,922 | |||||||||||||||
1,403 | Vericrest Opportunity Loan Transferee, Series 2017-NP12, 144A | 3.875% | 9/25/45 | N/R | 1,405,745 | |||||||||||||||
1,746 | Veros Auto Receivables Trust 2017-1, 144A | 2.840% | 4/17/23 | N/R | 1,742,197 | |||||||||||||||
1,565 | VNO Mortgage Trust, Series 2013-PENN, 144A | 3.808% | 12/13/29 | AAA | 1,613,108 | |||||||||||||||
172 | Volkswagen Auto Loan Enhanced Trust, Series 2014-2 | 0.950% | 4/22/19 | AAA | 172,010 | |||||||||||||||
2,225 | Vornado DP LLC Commercial Mortgage Credit Tenant Lease Series 2010-VNO, 144A | 2.970% | 9/13/28 | AAA | 2,249,658 | |||||||||||||||
155 | Walter Investment Management Company Capital Trust, Series 2012-AA, 144A | 4.549% | 10/16/50 | A | 154,580 | |||||||||||||||
11 | Wells Fargo Mortgage Backed Securities, 2005-AR16 Class 3A2 | 3.500% | 3/25/35 | AA+ | 10,697 | |||||||||||||||
2,346 | Wendy’s Funding LLC, Series 2015-1A, 144A | 3.371% | 6/15/45 | BBB | 2,352,287 | |||||||||||||||
2,349 | World Omni Auto Receivables Trust, Series 2017-A | 1.680% | 12/16/19 | Aaa | 2,343,086 | |||||||||||||||
1,312 | Entergy Arkansas Restoration Funding LLC, Senior Secured Storm Recovery Bonds, Series 2010-A | 2.300% | 8/01/21 | AAA | 1,312,647 | |||||||||||||||
$ | 245,022 | Total Asset-Backed and Mortgage-Backed Securities (cost $246,662,679) | 245,895,074 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 40.9% | ||||||||||||||||||||
Aerospace & Defense – 0.6% | ||||||||||||||||||||
$ | 1,565 | BAE Systems Holdings, 144A | 6.375% | 6/01/19 | BBB | $ | 1,650,001 | |||||||||||||
1,580 | L-3 Communications Corporation | 4.950% | 2/15/21 | BBB– | 1,673,234 | |||||||||||||||
3,145 | Total Aerospace & Defense | 3,323,235 | ||||||||||||||||||
Airlines – 0.5% | ||||||||||||||||||||
994 | Delta Air Lines Pass Through Certificates, Series 2012-1B, 144A | 6.875% | 5/07/19 | BBB | 1,036,526 | |||||||||||||||
249 | Delta Airlines | 5.300% | 4/15/19 | A1 | 257,650 | |||||||||||||||
859 | Northwest Airlines Trust Pass Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 924,282 | |||||||||||||||
412 | US Airways Pass Through Trust | 7.076% | 3/20/21 | A | 444,609 | |||||||||||||||
2,514 | Total Airlines | 2,663,067 | ||||||||||||||||||
Auto Components – 0.2% | ||||||||||||||||||||
853 | American & Axle Manufacturing Inc., (4) | 6.625% | 10/15/22 | BB– | 884,987 | |||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||
2,000 | Daimler Finance NA LLC, 144A | 1.500% | 7/05/19 | A | 1,976,415 | |||||||||||||||
2,000 | General Motors Financial Company Inc. | 3.200% | 7/13/20 | BBB | 2,027,017 | |||||||||||||||
4,000 | Total Automobiles | 4,003,432 |
NUVEEN | 83 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Banks – 9.3% | ||||||||||||||||||||
$ | 8,540 | Bank of America Corporation | 2.250% | 4/21/20 | A | $ | 8,545,449 | |||||||||||||
2,065 | Bank of Montreal | 1.500% | 7/18/19 | AA– | 2,044,746 | |||||||||||||||
2,870 | Barclays PLC | 2.750% | 11/08/19 | A | 2,876,170 | |||||||||||||||
3,280 | BB&T Corporation | 2.450% | 1/15/20 | A+ | 3,290,687 | |||||||||||||||
4,000 | Citigroup Inc. | 2.650% | 10/26/20 | A | 4,013,095 | |||||||||||||||
1,500 | Citizens Bank NA | 2.500% | 3/14/19 | A– | 1,503,447 | |||||||||||||||
1,900 | Fifth Third Bancorp. | 2.875% | 7/27/20 | A– | 1,919,957 | |||||||||||||||
3,440 | HSBC USA Inc. | 2.750% | 8/07/20 | AA– | 3,458,628 | |||||||||||||||
1,600 | ING Bank NV, 144A | 2.300% | 3/22/19 | Aa3 | 1,600,734 | |||||||||||||||
5,780 | JPMorgan Chase & Company | 1.850% | 3/22/19 | A+ | 5,756,725 | |||||||||||||||
1,445 | JPMorgan Chase & Company | 2.250% | 1/23/20 | A+ | 1,443,955 | |||||||||||||||
2,000 | PNC Bank NA | 2.400% | 10/18/19 | A+ | 2,002,738 | |||||||||||||||
2,160 | Santander UK PLC | 2.125% | 11/03/20 | Aa3 | 2,142,469 | |||||||||||||||
2,000 | Societe Generale, 144A | 2.500% | 4/08/21 | A+ | 1,989,700 | |||||||||||||||
1,720 | SunTrust Banks Inc. | 2.900% | 3/03/21 | A– | 1,739,098 | |||||||||||||||
4,995 | Wells Fargo & Company | 2.125% | 4/22/19 | A+ | 4,993,803 | |||||||||||||||
49,295 | Total Banks | 49,321,401 | ||||||||||||||||||
Beverages – 0.5% | ||||||||||||||||||||
2,540 | Anheuser Busch InBev | 5.375% | 1/15/20 | A– | 2,694,315 | |||||||||||||||
Biotechnology – 0.7% | ||||||||||||||||||||
1,375 | Biogen Inc. | 2.900% | 9/15/20 | A– | 1,393,632 | |||||||||||||||
2,285 | Celgene Corporation | 2.875% | 8/15/20 | BBB+ | 2,306,139 | |||||||||||||||
3,660 | Total Biotechnology | 3,699,771 | ||||||||||||||||||
Capital Markets – 3.4% | ||||||||||||||||||||
4,000 | Goldman Sachs Group, Inc. | 2.000% | 4/25/19 | A | 3,987,611 | |||||||||||||||
1,870 | Goldman Sachs Group, Inc. | 2.750% | 9/15/20 | A | 1,879,217 | |||||||||||||||
1,570 | Lazard Group LLC | 4.250% | 11/14/20 | A– | 1,635,160 | |||||||||||||||
5,995 | Morgan Stanley | 2.650% | 1/27/20 | A | 6,021,742 | |||||||||||||||
2,250 | Nomura Holdings Incorporated | 2.750% | 3/19/19 | A– | 2,266,653 | |||||||||||||||
2,000 | UBS AG Stamford | 2.350% | 3/26/20 | AA– | 1,998,285 | |||||||||||||||
17,685 | Total Capital Markets | 17,788,668 | ||||||||||||||||||
Chemicals – 1.1% | ||||||||||||||||||||
2,215 | Eastman Chemical Company | 2.700% | 1/15/20 | BBB | 2,229,171 | |||||||||||||||
1,935 | LyondellBasell Industries NV | 5.000% | 4/15/19 | BBB+ | 1,986,588 | |||||||||||||||
1,490 | Sherwin-Williams Company | 2.250% | 5/15/20 | BBB | 1,484,919 | |||||||||||||||
5,640 | Total Chemicals | 5,700,678 | ||||||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||||||
2,000 | AerCap Ireland Capital Limited / AerCap Global Aviation Trust | 3.750% | 5/15/19 | BBB– | 2,031,480 |
84 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Consumer Finance – 1.8% | ||||||||||||||||||||
$ | 1,200 | Ally Financial Inc. | 8.000% | 12/31/18 | BB– | $ | 1,257,000 | |||||||||||||
2,750 | American Express Credit Corporation | 2.600% | 9/14/20 | A2 | 2,763,730 | |||||||||||||||
1,355 | Capital One Financial Corporation | 2.450% | 4/24/19 | A– | 1,358,058 | |||||||||||||||
845 | Capital One Financial Corporation | 2.500% | 5/12/20 | A– | 843,890 | |||||||||||||||
2,000 | Ford Motor Credit Company | 2.597% | 11/04/19 | BBB | 2,001,079 | |||||||||||||||
1,250 | Navient Corporation | 5.000% | 10/26/20 | BB | 1,267,187 | |||||||||||||||
9,400 | Total Consumer Finance | 9,490,944 | ||||||||||||||||||
Containers & Packaging – 0.2% | ||||||||||||||||||||
1,240 | Packaging Corporation of America | 2.450% | 12/15/20 | BBB | 1,241,652 | |||||||||||||||
Diversified Financial Services – 0.6% | ||||||||||||||||||||
1,645 | BNP Paribas | 2.375% | 5/21/20 | Aa3 | 1,646,945 | |||||||||||||||
1,280 | Synchrony Financial | 3.000% | 8/15/19 | BBB– | 1,288,778 | |||||||||||||||
2,925 | Total Diversified Financial Services | 2,935,723 | ||||||||||||||||||
Diversified Telecommunication Services – 2.0% | ||||||||||||||||||||
4,440 | AT&T, Inc. | 2.300% | 3/11/19 | A– | 4,444,412 | |||||||||||||||
1,500 | CenturyLink Inc. | 5.625% | 4/01/20 | BB | 1,511,250 | |||||||||||||||
1,250 | Frontier Communications Corporation, (4) | 8.125% | 10/01/18 | B+ | 1,245,187 | |||||||||||||||
1,665 | Orange SA | 1.625% | 11/03/19 | BBB+ | 1,644,070 | |||||||||||||||
1,815 | Verizon Communications | 3.450% | 3/15/21 | A– | 1,870,150 | |||||||||||||||
10,670 | Total Diversified Telecommunication Services | 10,715,069 | ||||||||||||||||||
Electric Utilities – 0.4% | ||||||||||||||||||||
2,000 | Exelon Generation Co. LLC | 2.950% | 1/15/20 | BBB | 2,020,319 | |||||||||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||||||||||||||
1,500 | Corning Incorporated | 4.250% | 8/15/20 | BBB+ | 1,566,060 | |||||||||||||||
Equity Real Estate Investment Trusts – 0.6% | ||||||||||||||||||||
3,420 | SBA Tower Trust, 144A | 3.598% | 4/15/43 | BBB | 3,418,407 | |||||||||||||||
Food & Staples Retailing – 1.5% | ||||||||||||||||||||
2,000 | CVS Health Corporation | 2.800% | 7/20/20 | BBB+ | 2,008,202 | |||||||||||||||
750 | Supervalu Inc. | 6.750% | 6/01/21 | B– | 747,187 | |||||||||||||||
2,015 | Sysco Corporation | 2.600% | 10/01/20 | A3 | 2,023,499 | |||||||||||||||
3,000 | Walgreens Boots Alliance, Inc. | 2.700% | 11/18/19 | BBB | 3,017,874 | |||||||||||||||
7,765 | Total Food & Staples Retailing | 7,796,762 | ||||||||||||||||||
Food Products – 1.2% | ||||||||||||||||||||
2,175 | Bunge Limited Finance Company, (4) | 3.500% | 11/24/20 | BBB | 2,220,209 | |||||||||||||||
1,635 | Kraft Heinz Foods Co | 2.800% | 7/02/20 | BBB– | 1,644,323 | |||||||||||||||
2,500 | Tyson Foods | 2.650% | 8/15/19 | BBB | 2,511,802 | |||||||||||||||
6,310 | Total Food Products | 6,376,334 |
NUVEEN | 85 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Health Care Equipment & Supplies – 0.2% | ||||||||||||||||||||
$ | 1,120 | Abbott Laboratories | 2.900% | 11/30/21 | BBB | $ | 1,132,841 | |||||||||||||
Health Care Providers & Services – 0.9% | ||||||||||||||||||||
1,355 | Cardinal Health Inc. | 2.400% | 11/15/19 | BBB+ | 1,354,033 | |||||||||||||||
1,500 | HCA Inc. | 4.250% | 10/15/19 | BBB– | 1,531,875 | |||||||||||||||
1,765 | UnitedHealth Group Incorporated | 3.875% | 10/15/20 | A+ | 1,832,247 | |||||||||||||||
4,620 | Total Health Care Providers & Services | 4,718,155 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.2% | ||||||||||||||||||||
1,250 | MGM Resorts International Inc. | 6.750% | 10/01/20 | BB | 1,350,000 | |||||||||||||||
Household Durables – 0.4% | ||||||||||||||||||||
2,009 | Newell Brands Inc. | 2.600% | 3/29/19 | BBB– | 2,015,705 | |||||||||||||||
Industrial Conglomerates – 0.8% | ||||||||||||||||||||
2,020 | General Electric Capital Corporation | 4.625% | 1/07/21 | A+ | 2,142,730 | |||||||||||||||
2,000 | Siemens Financieringsmaatschappij NV, 144A | 1.300% | 9/13/19 | A+ | 1,969,927 | |||||||||||||||
4,020 | Total Industrial Conglomerates | 4,112,657 | ||||||||||||||||||
Insurance – 2.7% | ||||||||||||||||||||
2,000 | AFLAC Insurance | 2.400% | 3/16/20 | A– | 2,001,545 | |||||||||||||||
2,415 | American International Group, Inc. | 3.375% | 8/15/20 | BBB+ | 2,467,623 | |||||||||||||||
2,760 | Berkshire Hathaway Finance Corporation | 4.250% | 1/15/21 | AA | 2,918,411 | |||||||||||||||
1,500 | Hartford Financial Services Group Inc. | 5.500% | 3/30/20 | BBB+ | 1,598,627 | |||||||||||||||
2,025 | Marsh & McLennan Companies | 2.350% | 3/06/20 | A– | 2,023,734 | |||||||||||||||
1,500 | Met Life Global Funding I, 144A | 2.000% | 4/14/20 | AA– | 1,488,423 | |||||||||||||||
1,570 | Prudential Financial Inc. | 4.500% | 11/15/20 | A | 1,658,972 | |||||||||||||||
13,770 | Total Insurance | 14,157,335 | ||||||||||||||||||
Internet Software & Services – 0.4% | ||||||||||||||||||||
2,185 | eBay Inc. | 2.200% | 8/01/19 | BBB+ | 2,179,321 | |||||||||||||||
Leisure Products – 0.4% | ||||||||||||||||||||
1,980 | Carnival Corporation | 3.950% | 10/15/20 | A– | 2,066,981 | |||||||||||||||
Machinery – 0.3% | ||||||||||||||||||||
1,365 | Ingersoll-Rand Luxembourg Finance SA | 2.625% | 5/01/20 | BBB | 1,364,548 | |||||||||||||||
Media – 1.6% | ||||||||||||||||||||
1,735 | 21st Century Fox America Inc. | 4.500% | 2/15/21 | BBB+ | 1,833,595 | |||||||||||||||
1,660 | CBS Corporation | 2.300% | 8/15/19 | BBB | 1,658,670 | |||||||||||||||
2,000 | Charter Communications Operating LLC/ Charter Communications Operating Capital Corporation | 3.579% | 7/23/20 | BBB– | 2,037,152 | |||||||||||||||
1,600 | Discovery Communications Inc. | 5.050% | 6/01/20 | BBB– | 1,681,907 | |||||||||||||||
1,500 | Dish DBS Corporation | 4.250% | 4/01/18 | Ba3 | 1,505,625 | |||||||||||||||
8,495 | Total Media | 8,716,949 |
86 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Metals & Mining – 0.2% | ||||||||||||||||||||
$ | 1,250 | Arconic Inc. | 6.150% | 8/15/20 | BBB– | $ | 1,343,875 | |||||||||||||
Oil, Gas & Consumable Fuels – 2.3% | ||||||||||||||||||||
1,700 | BP Capital Markets PLC | 2.521% | 1/15/20 | A1 | 1,714,180 | |||||||||||||||
645 | Calumet Specialty Products | 6.500% | 4/15/21 | CCC+ | 641,775 | |||||||||||||||
1,143 | ConocoPhillips | 4.200% | 3/15/21 | A– | 1,201,834 | |||||||||||||||
1,290 | Occidental Petroleum Corporation | 4.100% | 2/01/21 | A | 1,350,945 | |||||||||||||||
1,645 | Petroleos Mexicanos | 5.500% | 2/04/19 | BBB+ | 1,700,025 | |||||||||||||||
750 | Sabine Pass Liquefaction LLC | 5.625% | 2/01/21 | BBB– | 803,979 | |||||||||||||||
1,595 | Schlumberger Holdings Corporation, 144A | 3.000% | 12/21/20 | AA– | 1,615,449 | |||||||||||||||
1,000 | Southwestern Energy Company, (4) | 5.800% | 1/23/20 | BB | 1,080,000 | |||||||||||||||
1,300 | Valero Energy Corporation | 6.125% | 2/01/20 | BBB | 1,400,027 | |||||||||||||||
750 | WPX Energy Inc. | 7.500% | 8/01/20 | B+ | 811,875 | |||||||||||||||
11,818 | Total Oil, Gas & Consumable Fuels | 12,320,089 | ||||||||||||||||||
Software – 0.4% | ||||||||||||||||||||
2,015 | Microsoft Corporation | 1.850% | 2/06/20 | AAA | 2,008,931 | |||||||||||||||
Specialty Retail – 0.4% | ||||||||||||||||||||
2,020 | Hyundai Capital America, 144A | 2.400% | 10/30/18 | A– | 2,018,037 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 0.6% | ||||||||||||||||||||
2,720 | Apple Inc. | 2.100% | 5/06/19 | AA+ | 2,726,015 | |||||||||||||||
500 | Dell Inc. | 5.875% | 6/15/19 | Ba2 | 520,625 | |||||||||||||||
3,220 | Total Technology Hardware, Storage & Peripherals | 3,246,640 | ||||||||||||||||||
Tobacco – 1.3% | ||||||||||||||||||||
1,700 | Altria Group Inc. | 2.625% | 1/14/20 | A- | 1,710,871 | |||||||||||||||
1,970 | Philip Morris International | 1.375% | 2/25/19 | A | 1,954,507 | |||||||||||||||
2,915 | Reynolds American Inc. | 3.250% | 6/12/20 | BBB+ | 2,961,729 | |||||||||||||||
6,585 | Total Tobacco | 6,627,107 | ||||||||||||||||||
Trading Companies & Distributors – 0.3% | ||||||||||||||||||||
1,500 | Air Lease Corporation | 3.375% | 6/01/21 | BBB | 1,532,087 | |||||||||||||||
Wireless Telecommunication Services – 1.5% | ||||||||||||||||||||
1,570 | America Movil S.A. de C.V. | 5.000% | 3/30/20 | A- | 1,654,541 | |||||||||||||||
2,000 | Deutsche Telekom International Finance BV | 6.000% | 7/08/19 | BBB+ | 2,108,684 | |||||||||||||||
1,250 | Softbank Corporation, 144A | 4.500% | 4/15/20 | BB+ | 1,276,912 | |||||||||||||||
3,035 | Vodafone Group PLC | 4.375% | 3/16/21 | BBB+ | 3,211,279 | |||||||||||||||
7,855 | Total Wireless Telecommunication Services | 8,251,416 | ||||||||||||||||||
$ | 213,639 | Total Corporate Bonds (cost $217,091,541) | 216,834,978 |
NUVEEN | 87 |
Nuveen Short Term Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 9.1% | ||||||||||||||||||||
$ | 13,000 | Federal National Mortgage Association | 1.000% | 2/26/19 | Aaa | $ | 12,874,004 | |||||||||||||
5,500 | Freddie Mac Notes, (4) | 1.500% | 1/17/20 | Aaa | 5,447,233 | |||||||||||||||
4,500 | U.S. Treasury Inflation Indexed Obligations | 1.000% | 10/15/19 | Aaa | 4,430,976 | |||||||||||||||
8,000 | U.S. Treasury Notes | 1.000% | 8/15/18 | Aaa | 7,968,080 | |||||||||||||||
4,000 | U.S. Treasury Notes | 1.000% | 3/15/18 | Aaa | 3,997,191 | |||||||||||||||
6,000 | U.S. Treasury Notes | 1.250% | 11/30/18 | Aaa | 5,970,543 | |||||||||||||||
2,500 | U.S. Treasury Notes, (4) | 1.000% | 8/31/19 | Aaa | 2,464,421 | |||||||||||||||
5,000 | U.S. Treasury Notes | 0.875% | 9/15/19 | Aaa | 4,915,736 | |||||||||||||||
$ | 48,500 | Total U.S. Government and Agency Obligations (cost $48,294,377) | 48,068,184 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.2% | ||||||||||||||||||||
Guam – 0.2% | ||||||||||||||||||||
$ | 1,190 | Government of Guam, Business Privilege Tax Bonds, Taxable Series 2012B-2, 3.301%, 1/01/18 | No Opt. Call | A | $ | 1,190,000 | ||||||||||||||
1,190 | Total Municipal Bonds (cost $1,190,000) | 1,190,000 | ||||||||||||||||||
Total Long-Term Investments (cost $513,238,597) |
| 511,988,236 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.5% |
| |||||||||||||||||||
Money Market Funds – 1.5% | ||||||||||||||||||||
7,882,205 | First American Government Obligations Fund, Class X, (7) | 1.196% (6) | $ | 7,882,205 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $7,882,205) |
| 7,882,205 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 0.2% | ||||||||||||||||||||
Money Market Funds – 0.2% | ||||||||||||||||||||
875,738 | First American Treasury Obligations Fund, Class Z | 1.181% (6) | $ | 875,738 | ||||||||||||||||
Total Short-Term Investments (cost $875,738) | 875,738 | |||||||||||||||||||
Total Investments (cost $521,996,540) – 98.3% | 520,746,179 | |||||||||||||||||||
Other Assets Less Liabilities – 1.7% (8) | 8,802,188 | |||||||||||||||||||
Net Assets – 100% | $ | 529,548,367 |
88 | NUVEEN |
Investments in Derivatives
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||
U.S. Treasury 2-Year Note | Long | 472 | 3/18 | $ | 101,284,229 | $ | 101,059,626 | $ | (224,603 | ) | $ | 29,499 | ||||||||||||||
U.S. Treasury 10-Year Note | Short | (104 | ) | 3/18 | (12,969,505 | ) | (12,900,875 | ) | 68,630 | (21,125 | ) | |||||||||||||||
Total | $ | 88,314,724 | $ | 88,158,751 | $ | (155,973 | ) | $ | 8,374 | |||||||||||||||||
Total receivable for variation margin on futures contracts | $ | 29,499 | ||||||||||||||||||||||||
Total payable for variation margin on futures contracts | $ | (21,125 | ) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(4) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $7,655,969. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(6) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(7) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
LIBOR | London Inter-Bank Offered Rate |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
See accompanying notes to financial statements.
NUVEEN | 89 |
Nuveen Strategic Income Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
LONG-TERM INVESTMENTS – 98.4% | ||||||||||||||||||||||||||||
CORPORATE BONDS – 50.2% | ||||||||||||||||||||||||||||
Aerospace & Defense – 1.3% | ||||||||||||||||||||||||||||
$ | 2,785 | BAE Systems Holdings, 144A | 3.850% | 12/15/25 | BBB | $ | 2,887,497 | |||||||||||||||||||||
1,200 | Bombardier Inc., 144A | 8.750% | 12/01/21 | B | 1,320,000 | |||||||||||||||||||||||
3,000 | General Dynamics Corporation | 2.625% | 11/15/27 | A+ | 2,903,650 | |||||||||||||||||||||||
3,380 | Rockwell Collins Inc. | 3.500% | 3/15/27 | BBB | 3,440,469 | |||||||||||||||||||||||
Total Aerospace & Defense | 10,551,616 | |||||||||||||||||||||||||||
Air Freight & Logistics – 0.3% | ||||||||||||||||||||||||||||
2,280 | FedEx Corporation | 3.300% | 3/15/27 | BBB | 2,294,641 | |||||||||||||||||||||||
Airlines – 1.0% | ||||||||||||||||||||||||||||
2,000 | American Airlines Group Inc., 144A | 4.625% | 3/01/20 | BB– | 2,025,000 | |||||||||||||||||||||||
1,390 | American Airlines Inc., Pass Through Trust 2013-2B, 144A | 5.600% | 7/15/20 | BBB– | 1,436,559 | |||||||||||||||||||||||
952 | American Airlines Inc., Pass Through Trust 2016-1A | 3.575% | 1/15/28 | AA+ | 968,817 | |||||||||||||||||||||||
2,520 | Northwest Airlines Trust Pass Through Certificates 2007-1 | 7.027% | 11/01/19 | A | 2,712,111 | |||||||||||||||||||||||
765 | VistaJet Malta Finance PLC, 144A | 7.750% | 6/01/20 | B– | 711,450 | |||||||||||||||||||||||
Total Airlines | 7,853,937 | |||||||||||||||||||||||||||
Auto Components – 0.5% | ||||||||||||||||||||||||||||
750 | American & Axle Manufacturing Inc., 144A, (3) | 6.250% | 4/01/25 | BB– | 789,375 | |||||||||||||||||||||||
1,180 | American & Axle Manufacturing Inc., (3) | 6.625% | 10/15/22 | BB– | 1,224,250 | |||||||||||||||||||||||
2,000 | Lear Corporation | 5.375% | 3/15/24 | BBB– | 2,115,404 | |||||||||||||||||||||||
Total Auto Components | 4,129,029 | |||||||||||||||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||||||||||
5,680 | General Motors Corporation | 4.000% | 4/01/25 | BBB | 5,831,715 | |||||||||||||||||||||||
Banks – 9.0% | ||||||||||||||||||||||||||||
2,435 | Banco Santander SA | 3.800% | 2/23/28 | A– | 2,434,593 | |||||||||||||||||||||||
4,064 | Bank of America Corporation | 4.000% | 4/01/24 | A | 4,295,287 | |||||||||||||||||||||||
4,575 | Bank of America Corporation | 4.200% | 8/26/24 | A– | 4,816,772 | |||||||||||||||||||||||
4,105 | Bank of America Corporation | 3.248% | 10/21/27 | A | 4,072,223 | |||||||||||||||||||||||
3,662 | Bank of America Corporation, 144A | 3.419% | 12/20/28 | A | 3,661,658 | |||||||||||||||||||||||
3,800 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 3,793,225 | |||||||||||||||||||||||
1,405 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,494,417 | |||||||||||||||||||||||
6,495 | Citigroup Inc. | 3.750% | 6/16/24 | A | 6,735,468 | |||||||||||||||||||||||
3,155 | Citigroup Inc. | 3.200% | 10/21/26 | A | 3,129,474 | |||||||||||||||||||||||
4,245 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 4,437,881 | |||||||||||||||||||||||
2,375 | HSBC Holdings PLC | 4.375% | 11/23/26 | A+ | 2,478,872 |
90 | NUVEEN |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Banks (continued) | ||||||||||||||||||||||||||||
$ | 2,100 | ING Groep N.V | 3.950% | 3/29/27 | A+ | $ | 2,188,680 | |||||||||||||||||||||
1,400 | JPMorgan Chase & Company | 4.500% | 1/24/22 | A+ | 1,497,903 | |||||||||||||||||||||||
9,750 | JPMorgan Chase & Company | 3.200% | 1/25/23 | A+ | 9,943,597 | |||||||||||||||||||||||
1,100 | JPMorgan Chase & Company | 3.875% | 9/10/24 | A | 1,147,187 | |||||||||||||||||||||||
2,715 | JPMorgan Chase & Company | 4.260% | 2/22/48 | A+ | 2,935,778 | |||||||||||||||||||||||
2,425 | PNC Financial Services Inc. | 3.150% | 5/19/27 | A+ | 2,432,585 | |||||||||||||||||||||||
1,220 | Royal Bank of Scotland Group PLC | 6.100% | 6/10/23 | BBB | 1,343,227 | |||||||||||||||||||||||
3,335 | Santander UK PLC, 144A | 5.000% | 11/07/23 | A– | 3,563,644 | |||||||||||||||||||||||
3,090 | SunTrust Banks Inc. | 2.450% | 8/01/22 | A– | 3,046,487 | |||||||||||||||||||||||
3,505 | Wells Fargo & Company | 4.600% | 4/01/21 | A+ | 3,724,435 | |||||||||||||||||||||||
Total Banks | 73,173,393 | |||||||||||||||||||||||||||
Beverages – 1.4% | ||||||||||||||||||||||||||||
5,785 | Anheuser Busch InBev Financial Incorporated, Fixed Rate Note, Series 2016 | 3.650% | 2/01/26 | A– | 5,968,500 | |||||||||||||||||||||||
1,350 | Constellation Brands Inc. | 4.250% | 5/01/23 | BBB– | 1,427,902 | |||||||||||||||||||||||
3,870 | Heineken NV, 144A | 3.500% | 1/29/28 | BBB+ | 3,946,997 | |||||||||||||||||||||||
Total Beverages | 11,343,399 | |||||||||||||||||||||||||||
Building Products – 0.4% | ||||||||||||||||||||||||||||
2,740 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB | 2,872,658 | |||||||||||||||||||||||
Capital Markets – 5.8% | ||||||||||||||||||||||||||||
4,845 | Charles Schwab Corporation | 2.650% | 1/25/23 | A | 4,841,340 | |||||||||||||||||||||||
3,630 | Deutsche Bank AG | 4.875% | 12/01/32 | BBB | 3,617,295 | |||||||||||||||||||||||
1,375 | Goldman Sachs Group, Inc. | 5.250% | 7/27/21 | A | 1,490,063 | |||||||||||||||||||||||
900 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 997,836 | |||||||||||||||||||||||
10,550 | Goldman Sachs Group, Inc. | 4.000% | 3/03/24 | A | 11,066,177 | |||||||||||||||||||||||
2,295 | Goldman Sachs Group, Inc. | 4.250% | 10/21/25 | A– | 2,397,988 | |||||||||||||||||||||||
4,915 | Lazard Group LLC | 3.625% | 3/01/27 | A– | 4,903,444 | |||||||||||||||||||||||
3,070 | Morgan Stanley | 4.000% | 7/23/25 | A | 3,213,676 | |||||||||||||||||||||||
11,500 | Morgan Stanley | 3.950% | 4/23/27 | A– | 11,674,696 | |||||||||||||||||||||||
2,415 | Northern Trust Company | 3.950% | 10/30/25 | A+ | 2,557,786 | |||||||||||||||||||||||
Total Capital Markets | 46,760,301 | |||||||||||||||||||||||||||
Chemicals – 1.4% | ||||||||||||||||||||||||||||
3,000 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 3,013,198 | |||||||||||||||||||||||
995 | Chemours Co | 5.375% | 5/15/27 | BB– | 1,029,825 | |||||||||||||||||||||||
1,000 | CVR Partners LP / CVR Nitrogen Finance Corp., 144A | 9.250% | 6/15/23 | B+ | 1,076,250 | |||||||||||||||||||||||
1,000 | FXI Holdings, Inc., 144A | 7.875% | 11/01/24 | B | 997,800 | |||||||||||||||||||||||
1,450 | Hexion Inc. | 6.625% | 4/15/20 | CCC+ | 1,301,375 | |||||||||||||||||||||||
1,500 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 1,543,125 | |||||||||||||||||||||||
1,350 | NOVA Chemicals Corporation, 144A | 5.000% | 5/01/25 | BBB– | 1,346,625 |
NUVEEN | 91 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Chemicals (continued) | ||||||||||||||||||||||||||||
$ | 1,000 | Office Cherifien Des Phosphates SA, 144A | 5.625% | 4/25/24 | BBB– | $ | 1,071,180 | |||||||||||||||||||||
Total Chemicals | 11,379,378 | |||||||||||||||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||||||||||||||
2,105 | AerCap Ireland Capital Limited / AerCap Global Aviation Trust | 3.950% | 2/01/22 | BBB– | 2,169,265 | |||||||||||||||||||||||
800 | Arch Merger Sub Inc., 144A | 8.500% | 9/15/25 | B– | 740,000 | |||||||||||||||||||||||
Total Commercial Services & Supplies | 2,909,265 | |||||||||||||||||||||||||||
Communications Equipment – 0.3% | ||||||||||||||||||||||||||||
2,300 | Qualcomm, Inc. | 2.100% | 5/20/20 | A1 | 2,290,183 | |||||||||||||||||||||||
Consumer Finance – 1.7% | ||||||||||||||||||||||||||||
3,938 | Capital One Bank | 3.375% | 2/15/23 | Baa1 | 3,976,300 | |||||||||||||||||||||||
750 | Credit Acceptance Corporation | 7.375% | 3/15/23 | BB | 785,625 | |||||||||||||||||||||||
1,750 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 1,824,693 | |||||||||||||||||||||||
3,215 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 3,460,094 | |||||||||||||||||||||||
3,405 | Ford Motor Credit Company | 3.810% | 1/09/24 | BBB | 3,475,338 | |||||||||||||||||||||||
Total Consumer Finance | 13,522,050 | |||||||||||||||||||||||||||
Diversified Consumer Services – 0.2% | ||||||||||||||||||||||||||||
1,250 | Prime Security Services Borrower LLC / Prime Finance, Inc., 144A | 9.250% | 5/15/23 | B– | 1,387,500 | |||||||||||||||||||||||
Diversified Financial Services – 1.1% | ||||||||||||||||||||||||||||
3,510 | BNP Paribas, 144A | 4.375% | 5/12/26 | A | 3,669,332 | |||||||||||||||||||||||
500 | Hexion 2 US Financial Corp., 144A | 13.750% | 2/01/22 | CCC | 410,000 | |||||||||||||||||||||||
1,955 | Jefferies Group Inc. | 4.850% | 1/15/27 | BBB– | 2,077,873 | |||||||||||||||||||||||
2,000 | Quicken Loans Inc., 144A | 5.250% | 1/15/28 | Ba1 | 1,974,400 | |||||||||||||||||||||||
650 | Stoneway Capital Corporation, 144A | 10.000% | 3/01/27 | B | 691,145 | |||||||||||||||||||||||
Total Diversified Financial Services | 8,822,750 | |||||||||||||||||||||||||||
Diversified Telecommunication Services – 2.6% | ||||||||||||||||||||||||||||
2,335 | AT&T, Inc. | 3.800% | 3/15/22 | A– | 2,412,901 | |||||||||||||||||||||||
7,275 | AT&T, Inc. | 3.400% | 8/14/24 | A– | 7,310,747 | |||||||||||||||||||||||
2,000 | AT&T, Inc. | 4.750% | 5/15/46 | A– | 1,954,424 | |||||||||||||||||||||||
883 | Frontier Communications Corporation, (3) | 8.500% | 4/15/20 | B+ | 732,890 | |||||||||||||||||||||||
500 | Frontier Communications Corporation | 11.000% | 9/15/25 | B+ | 367,500 | |||||||||||||||||||||||
2,175 | GCI Inc. | 6.875% | 4/15/25 | BB– | 2,316,375 | |||||||||||||||||||||||
900 | IntelSat Jackson Holdings, (3) | 7.500% | 4/01/21 | CCC+ | 819,000 | |||||||||||||||||||||||
2,360 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 2,541,170 | |||||||||||||||||||||||
3,215 | Verizon Communications | 4.125% | 8/15/46 | A– | 2,967,355 | |||||||||||||||||||||||
Total Diversified Telecommunication Services | 21,422,362 |
92 | NUVEEN |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Electric Utilities – 0.2% | ||||||||||||||||||||||||||||
$ | 1,115 | FirstEnergy Transmission LLC, 144A | 4.350% | 1/15/25 | Baa2 | $ | 1,176,041 | |||||||||||||||||||||
680 | Intergen NV, 144A | 7.000% | 6/30/23 | B1 | 657,900 | |||||||||||||||||||||||
Total Electric Utilities | 1,833,941 | |||||||||||||||||||||||||||
Energy Equipment & Services – 0.8% | ||||||||||||||||||||||||||||
2,435 | Baker Hughes a GE Co LLC, 144A | 2.773% | 12/15/22 | A– | 2,431,471 | |||||||||||||||||||||||
1,500 | Ensco PLC | 5.200% | 3/15/25 | BB– | 1,275,000 | |||||||||||||||||||||||
2,000 | Origin Energy Finance Limited, 144A | 3.500% | 10/09/18 | BBB– | 2,011,900 | |||||||||||||||||||||||
500 | Precision Drilling Corporation | 7.750% | 12/15/23 | BB | 525,000 | |||||||||||||||||||||||
Total Energy Equipment & Services | 6,243,371 | |||||||||||||||||||||||||||
Equity Real Estate Investment Trusts – 0.9% | ||||||||||||||||||||||||||||
3,070 | American Tower Company | 5.000% | 2/15/24 | BBB | 3,362,122 | |||||||||||||||||||||||
2,080 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 2,164,493 | |||||||||||||||||||||||
1,420 | Plum Creek Timberlands LP | 4.700% | 3/15/21 | BBB | 1,507,823 | |||||||||||||||||||||||
Total Equity Real Estate Investment Trusts |
| 7,034,438 | ||||||||||||||||||||||||||
Food & Staples Retailing – 0.7% | ||||||||||||||||||||||||||||
1,000 | Rite Aid Corporation, 144A, (3) | 6.125% | 4/01/23 | B | 902,500 | |||||||||||||||||||||||
2,975 | Sysco Corporation | 3.300% | 7/15/26 | A3 | 2,992,867 | |||||||||||||||||||||||
2,000 | Walgreens Boots Alliance, Inc. | 3.800% | 11/18/24 | BBB | 2,042,070 | |||||||||||||||||||||||
Total Food & Staples Retailing | 5,937,437 | |||||||||||||||||||||||||||
Food Products – 0.6% | ||||||||||||||||||||||||||||
2,460 | Bunge Limited Finance Company | 3.250% | 8/15/26 | BBB | 2,350,306 | |||||||||||||||||||||||
2,235 | Kraft Heinz Foods Company | 4.375% | 6/01/46 | BBB– | 2,211,894 | |||||||||||||||||||||||
Total Food Products | 4,562,200 | |||||||||||||||||||||||||||
Gas Utilities – 0.2% | ||||||||||||||||||||||||||||
1,250 | Suburban Propane Partners LP | 5.500% | 6/01/24 | BB– | 1,237,500 | |||||||||||||||||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||||||||||||||||||||||
400 | EUR | Synlab Bondco PLC, 144A | 6.250% | 7/01/22 | B+ | 504,698 | ||||||||||||||||||||||
Health Care Providers & Services – 0.2% | ||||||||||||||||||||||||||||
1,000 | Community Health Systems, Inc., (3) | 6.875% | 2/01/22 | CCC | 575,000 | |||||||||||||||||||||||
920 | HCA Inc. | 5.500% | 6/15/47 | BBB– | 917,700 | |||||||||||||||||||||||
500 | Kindred Healthcare Inc. | 6.375% | 4/15/22 | B– | 507,500 | |||||||||||||||||||||||
Total Health Care Providers & Services | 2,000,200 | |||||||||||||||||||||||||||
Health Care Technology – 0.1% | ||||||||||||||||||||||||||||
1,145 | Exela Intermediate LLC / Exela Financial Inc., 144A | 10.000% | 7/15/23 | B | 1,113,512 | |||||||||||||||||||||||
Hotels, Restaurants & Leisure – 0.3% | ||||||||||||||||||||||||||||
720 | 1011778 BC ULC/New Red Finance Inc., 144A | 5.000% | 10/15/25 | B– | 725,400 |
NUVEEN | 93 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Hotels, Restaurants & Leisure (continued) | ||||||||||||||||||||||||||||
$ | 2,000 | Carlson Travel, Inc., 144A, (3) | 6.750% | 12/16/23 | B | $ | 1,810,000 | |||||||||||||||||||||
Total Hotels, Restaurants & Leisure | 2,535,400 | |||||||||||||||||||||||||||
Household Durables – 0.9% | ||||||||||||||||||||||||||||
2,940 | Harman International Industries, Inc. | 4.150% | 5/15/25 | BBB+ | 3,039,112 | |||||||||||||||||||||||
2,505 | Newell Brands Inc. | 4.200% | 4/01/26 | BBB– | 2,615,590 | |||||||||||||||||||||||
1,350 | RSI Home Products Incorporated, 144A | 6.500% | 3/15/23 | BB– | 1,414,125 | |||||||||||||||||||||||
Total Household Durables | 7,068,827 | |||||||||||||||||||||||||||
Household Products – 0.2% | ||||||||||||||||||||||||||||
1,300 | Kimberly-Clark de Mexico, S.A.B. de C.V, 144A | 3.250% | 3/12/25 | A | 1,277,758 | |||||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.1% | ||||||||||||||||||||||||||||
1,000 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B+ | 812,500 | |||||||||||||||||||||||
Industrial Conglomerates – 1.1% | ||||||||||||||||||||||||||||
1,000 | Alfa SAB de CV, 144A, (3) | 5.250% | 3/25/24 | BBB– | 1,057,500 | |||||||||||||||||||||||
3,740 | GE Capital International Funding CO | 4.418% | 11/15/35 | A+ | 4,044,816 | |||||||||||||||||||||||
3,200 | Siemens Financieringsmaatschappij NV, 144A | 3.400% | 3/16/27 | A+ | 3,259,817 | |||||||||||||||||||||||
1,000 | Stena International SA, 144A, (3) | 5.750% | 3/01/24 | BB– | 941,250 | |||||||||||||||||||||||
Total Industrial Conglomerates | 9,303,383 | |||||||||||||||||||||||||||
Insurance – 2.7% | ||||||||||||||||||||||||||||
646 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 884,655 | |||||||||||||||||||||||
3,000 | Fairfax US Inc., 144A | 4.875% | 8/13/24 | BBB– | 3,125,588 | |||||||||||||||||||||||
3,370 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 3,635,934 | |||||||||||||||||||||||
2,535 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 2,645,914 | |||||||||||||||||||||||
3,015 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 3,060,528 | |||||||||||||||||||||||
2,075 | Unum Group | 4.000% | 3/15/24 | BBB | 2,160,336 | |||||||||||||||||||||||
1,805 | Willis North America, Inc. | 3.600% | 5/15/24 | BBB | 1,834,582 | |||||||||||||||||||||||
4,790 | XLIT Limited | 4.450% | 3/31/25 | BBB | 4,898,116 | |||||||||||||||||||||||
Total Insurance | 22,245,653 | |||||||||||||||||||||||||||
Internet Software & Services – 0.6% | ||||||||||||||||||||||||||||
1,500 | Donnelley Financial Solutions, Inc. | 8.250% | 10/15/24 | B | 1,605,000 | |||||||||||||||||||||||
2,865 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 2,973,781 | |||||||||||||||||||||||
Total Internet Software & Services | 4,578,781 | |||||||||||||||||||||||||||
Machinery – 0.5% | ||||||||||||||||||||||||||||
3,370 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | 3,337,192 | |||||||||||||||||||||||
1,000 | Navistar International Corporation, 144A | 6.625% | 11/01/25 | B– | 1,043,380 | |||||||||||||||||||||||
Total Machinery | 4,380,572 | |||||||||||||||||||||||||||
Marine – 0.2% | ||||||||||||||||||||||||||||
1,700 | Eletson Holdings Inc., 144A | 9.625% | 1/15/22 | CCC+ | 901,000 |
94 | NUVEEN |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Marine (continued) | ||||||||||||||||||||||||||||
$ | 500 | Navios Maritime Acquisition Corporation, 144A | 8.125% | 11/15/21 | B | $ | 423,750 | |||||||||||||||||||||
Total Marine | 1,324,750 | |||||||||||||||||||||||||||
Media – 1.7% | ||||||||||||||||||||||||||||
2,260 | CBS Corporation | 4.000% | 1/15/26 | BBB | 2,309,119 | |||||||||||||||||||||||
1,790 | Comcast Corporation | 6.400% | 5/15/38 | A– | 2,415,481 | |||||||||||||||||||||||
1,500 | Lee Enterprises Inc., 144A, (3) | 9.500% | 3/15/22 | B2 | 1,552,500 | |||||||||||||||||||||||
800 | Post Holdings Inc., 144A | 5.625% | 1/15/28 | B | 803,000 | |||||||||||||||||||||||
1,800 | Telenet Finance Luxembourg, 144A | 5.500% | 3/01/28 | BB | 1,788,467 | |||||||||||||||||||||||
1,805 | Time Warner Inc. | 3.875% | 1/15/26 | BBB+ | 1,821,768 | |||||||||||||||||||||||
1,750 | CAD | Videotron Limited, 144A | 5.625% | 6/15/25 | BB | 1,493,640 | ||||||||||||||||||||||
1,600 | VTR Finance BV, 144A | 6.875% | 1/15/24 | BB– | 1,688,000 | |||||||||||||||||||||||
Total Media | 13,871,975 | |||||||||||||||||||||||||||
Metals & Mining – 1.1% | ||||||||||||||||||||||||||||
1,000 | Aleris International Inc., 144A | 9.500% | 4/01/21 | B2 | 1,055,000 | |||||||||||||||||||||||
2,430 | Glencore Funding LLC, 144A | 3.875% | 10/27/27 | BBB | 2,397,827 | |||||||||||||||||||||||
1,520 | Hudbay Minerals, Inc., 144A | 7.250% | 1/15/23 | B+ | 1,611,200 | |||||||||||||||||||||||
1,000 | IAMGOLD Corporation, 144A | 7.000% | 4/15/25 | B+ | 1,032,500 | |||||||||||||||||||||||
1,000 | Northwest Acquisition/Dominion Finco Inc., 144A |
| 7.125% | 11/01/22 | BB | 1,032,500 | ||||||||||||||||||||||
1,000 | SunCoke Energy Partners LP, 144A | 7.500% | 6/15/25 | BB– | 1,045,000 | |||||||||||||||||||||||
900 | Warrior Met Coal LLC, 144A | 8.000% | 11/01/24 | B– | 929,250 | |||||||||||||||||||||||
Total Metals & Mining | 9,103,277 | |||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 3.3% | ||||||||||||||||||||||||||||
2,000 | Abu Dhabi Crude Oil Pipeline LLC, 144A | 4.600% | 11/02/47 | AA | 2,057,060 | |||||||||||||||||||||||
1,262 | Berkshire Hathaway Energy Company | 6.125% | 4/01/36 | A– | 1,692,141 | |||||||||||||||||||||||
1,410 | Canadian Natural Resources Limited | 5.850% | 2/01/35 | BBB+ | 1,651,898 | |||||||||||||||||||||||
1,025 | Cheniere Corpus Christi Holdings, LLC | 5.125% | 6/30/27 | BB– | 1,060,260 | |||||||||||||||||||||||
900 | Global Partners LP/GLP Finance | 6.250% | 7/15/22 | B+ | 924,750 | |||||||||||||||||||||||
2,700 | MPLX LP | 4.875% | 6/01/25 | BBB– | 2,892,999 | |||||||||||||||||||||||
1,880 | Occidental Petroleum Corporation | 3.400% | 4/15/26 | A | 1,924,846 | |||||||||||||||||||||||
1,000 | PBF Holding Company LLC | 7.250% | 6/15/25 | BB | 1,051,250 | |||||||||||||||||||||||
1,275 | Petro Canada | 6.800% | 5/15/38 | A– | 1,756,032 | |||||||||||||||||||||||
1,000 | Petrobras Global Finance BV | 7.375% | 1/17/27 | BB | 1,101,000 | |||||||||||||||||||||||
1,575 | Petroleos del Peru SA, 144A | 4.750% | 6/19/32 | BBB+ | 1,592,719 | |||||||||||||||||||||||
1,345 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 1,510,706 | |||||||||||||||||||||||
1,910 | Sunoco Logistics Partners LP | 4.000% | 10/01/27 | BBB– | 1,872,302 | |||||||||||||||||||||||
670 | Targa Resources Inc. | 4.250% | 11/15/23 | BB– | 662,462 | |||||||||||||||||||||||
2,500 | Valero Energy Corporation | 3.400% | 9/15/26 | BBB | 2,509,491 | |||||||||||||||||||||||
2,875 | Woodside Finance Limited, 144A | 3.650% | 3/05/25 | BBB+ | 2,891,789 | |||||||||||||||||||||||
Total Oil, Gas & Consumable Fuels | 27,151,705 |
NUVEEN | 95 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Paper & Forest Products – 0.3% | ||||||||||||||||||||||||||||
$ | 2,100 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | $ | 2,426,518 | |||||||||||||||||||||
Personal Products – 0.3% | ||||||||||||||||||||||||||||
1,740 | International Paper Company | 8.700% | 6/15/38 | BBB | 2,630,083 | |||||||||||||||||||||||
Pharmaceuticals – 0.4% | ||||||||||||||||||||||||||||
2,450 | Teva Pharmaceutical Finance III, (3) | 3.150% | 10/01/26 | BBB– | 2,022,286 | |||||||||||||||||||||||
1,460 | Valeant Pharmaceuticals International, 144A | 5.500% | 11/01/25 | BB– | 1,485,550 | |||||||||||||||||||||||
Total Pharmaceuticals | 3,507,836 | |||||||||||||||||||||||||||
Real Estate Management & Development – 0.3% | ||||||||||||||||||||||||||||
1,250 | Hunt Companies Inc., 144A | 9.625% | 3/01/21 | N/R | 1,317,187 | |||||||||||||||||||||||
750 | Mattamy Group Corporation, 144A | 6.500% | 10/01/25 | BB | 793,125 | |||||||||||||||||||||||
Total Real Estate Management & Development | 2,110,312 | |||||||||||||||||||||||||||
Road & Rail – 0.4% | ||||||||||||||||||||||||||||
2,222 | Herc Rentals, Inc., 144A, (3) | 7.750% | 6/01/24 | B+ | 2,438,645 | |||||||||||||||||||||||
1,100 | The Hertz Corporation, 144A, (3) | 7.625% | 6/01/22 | BB– | 1,152,250 | |||||||||||||||||||||||
Total Road & Rail | 3,590,895 | |||||||||||||||||||||||||||
Semiconductors & Semiconductor Equipment – 0.6% | ||||||||||||||||||||||||||||
2,655 | Intel Corporation | 3.150% | 5/11/27 | A+ | 2,706,828 | |||||||||||||||||||||||
2,425 | Texas Instruments Incorporated | 2.900% | 11/03/27 | A+ | 2,416,238 | |||||||||||||||||||||||
Total Semiconductors & Semiconductor Equipment |
| 5,123,066 | ||||||||||||||||||||||||||
Software – 0.4% | ||||||||||||||||||||||||||||
2,450 | Microsoft Corporation | 3.300% | 2/06/27 | AAA | 2,526,467 | |||||||||||||||||||||||
1,000 | Olympus Merger Sub, Inc., 144A | 8.500% | 10/15/25 | B3 | 987,500 | |||||||||||||||||||||||
Total Software | 3,513,967 | |||||||||||||||||||||||||||
Specialty Retail – 1.1% | ||||||||||||||||||||||||||||
2,000 | AutoNation Inc. | 4.500% | 10/01/25 | BBB– | 2,092,620 | |||||||||||||||||||||||
2,900 | Bed Bath and Beyond Incorporated | 5.165% | 8/01/44 | Baa1 | 2,549,080 | |||||||||||||||||||||||
1,500 | L Brands, Inc. | 6.875% | 11/01/35 | BB+ | 1,515,000 | |||||||||||||||||||||||
2,405 | Lowes Companies, Inc. | 3.100% | 5/03/27 | A– | 2,412,802 | |||||||||||||||||||||||
Total Specialty Retail | 8,569,502 | |||||||||||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.2% | ||||||||||||||||||||||||||||
1,425 | Western Digital Corporation, 144A | 7.375% | 4/01/23 | BBB– | 1,537,219 | |||||||||||||||||||||||
Trading Companies & Distributors – 0.3% | ||||||||||||||||||||||||||||
1,995 | Air Lease Corporation | 3.875% | 4/01/21 | BBB | 2,066,185 | |||||||||||||||||||||||
515 | Ashtead Capital Inc., 144A | 4.125% | 8/15/25 | BBB– | 520,150 | |||||||||||||||||||||||
Total Trading Companies & Distributors | 2,586,335 | |||||||||||||||||||||||||||
Transportation Infrastructure – 0.1% | ||||||||||||||||||||||||||||
1,110 | Rumo Luxembourg Sarl, 144A | 7.375% | 2/09/24 | BB– | 1,194,471 |
96 | NUVEEN |
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Wireless Telecommunication Services – 1.2% | ||||||||||||||||||||||||||||
$ | 1,150 | Colombia Telecommunicaciones S.A. ESP, 144A | 8.500% | N/A | (4) | B+ | $ | 1,236,250 | ||||||||||||||||||||
1,000 | Hughes Satellite Systems Corporation | 6.625% | 8/01/26 | BB– | 1,047,500 | |||||||||||||||||||||||
1,040 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 1,040,000 | |||||||||||||||||||||||
500 | Sprint Capital Corporation | 6.875% | 11/15/28 | B+ | 503,125 | |||||||||||||||||||||||
2,133 | Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC, 144A | 3.360% | 9/20/21 | Baa2 | 2,146,143 | |||||||||||||||||||||||
1,350 | Telecom Italia SpA, 144A | 5.303% | 5/30/24 | BBB– | 1,441,125 | |||||||||||||||||||||||
2,650 | Telefonica Emisiones SAU | 4.103% | 3/08/27 | BBB | 2,737,474 | |||||||||||||||||||||||
Total Wireless Telecommunication Services | 10,151,617 | |||||||||||||||||||||||||||
Total Corporate Bonds (cost $398,616,314) | 407,607,876 | |||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 28.6% | ||||||||||||||||||||||||||||
$ | 5,075 | Ally Auto Receivables Trust, Series 2017-3 | 2.010% | 3/15/22 | AAA | $ | 5,039,511 | |||||||||||||||||||||
5,390 | American Express Credit Card Master Trust, Series 2017-1 | 1.930% | 9/15/22 | Aaa | 5,364,255 | |||||||||||||||||||||||
2,281 | American Homes 4 Rent, Series 2014-SFR2, 144A | 3.786% | 10/17/36 | Aaa | 2,370,394 | |||||||||||||||||||||||
2,270 | AmeriCold LLC Trust, Series 2010, 144A | 6.811% | 1/14/29 | A+ | 2,478,825 | |||||||||||||||||||||||
24 | Bank of America Alternative Loan Trust, | 6.000% | 6/25/35 | Caa1 | 23,323 | |||||||||||||||||||||||
1,200 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 4.366% | 9/15/48 | A– | 1,239,455 | |||||||||||||||||||||||
770 | Bank of America Commercial Mortgage Inc. , Commercial Mortgage Pass-Through Certificates, Series 2015-UBS7 | 3.167% | 9/15/48 | BBB– | 630,853 | |||||||||||||||||||||||
5,155 | Bank of America Credit Card Trust, Series 2017-A1 | 1.950% | 8/15/22 | Aaa | 5,131,088 | |||||||||||||||||||||||
2,400 | Barclays Commercial Mortgage, Mortgage Pass-Through Certificates, Series 2015-STP, 144A | 4.284% | 9/10/28 | BBB– | 2,416,629 | |||||||||||||||||||||||
4,900 | Citibank Credit Card Issuance Trust, Series 2014-A6 | 2.150% | 7/15/21 | Aaa | 4,905,056 | |||||||||||||||||||||||
3,000 | Cold Storage Trust, Commercial Mortgage Backed Securities, Series 2017-ICE3, 144A, (1-Month LIBOR reference rate + 1.000% spread), (5) | 2.559% | 4/15/36 | AAA | 3,007,430 | |||||||||||||||||||||||
4,152 | Colony American Homes Trust 2014-1A, 144A, (1-Month LIBOR reference rate + 1.150% spread), (5) | 2.709% | 5/17/31 | Aaa | 4,163,129 | |||||||||||||||||||||||
3,940 | Commercial Mortgage Pass-Through Certificates 2015-CR22 | 4.122% | 3/10/48 | A– | 3,912,973 | |||||||||||||||||||||||
3,260 | Commercial Mortgage Pass-Through Certificates, Series 2015-CR26 | 4.493% | 10/10/48 | A– | 3,165,174 | |||||||||||||||||||||||
1,610 | Commercial Mortgage Pass-Through Certificates, Series 2016-SAVA, 144A, (1-Month LIBOR reference rate + 2.300% spread), (5) | 3.854% | 10/15/34 | AA– | 1,613,987 | |||||||||||||||||||||||
79 | Countrywide Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2004-24CB | 5.000% | 11/25/19 | BB+ | 78,942 | |||||||||||||||||||||||
721 | Countrywide Home Loans Mortgage, Series 2005-27 | 5.500% | 12/25/35 | Caa1 | 713,196 |
NUVEEN | 97 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
$ | 121 | Credit Suisse First Boston Mortgage Securities Corporation, Mortgage-Backed Pass-Through Certificates, Series 2003-23 | 5.750% | 9/25/33 | AA+ | $ | 126,565 | |||||||||||||||||||||
3,263 | DB Master Finance LLC, Series 2015-1A, 144A | 3.980% | 2/20/45 | BBB | 3,330,309 | |||||||||||||||||||||||
2,430 | Discover Card Execution Note Trust 2012-A6 | 1.670% | 1/18/22 | AAA | 2,416,240 | |||||||||||||||||||||||
1,950 | Discover Card Execution Trust 2015-A2 | 1.900% | 10/17/22 | AAA | 1,938,150 | |||||||||||||||||||||||
3,115 | Discover Card Execution Trust 2017-A2 | 2.390% | 7/15/24 | AAA | 3,114,140 | |||||||||||||||||||||||
3,671 | Dominos Pizza Master Issuer LLC, Series 2017-1A, 144A | 3.082% | 7/25/47 | BBB+ | 3,630,495 | |||||||||||||||||||||||
114 | Fannie Mae Mortgage Interest Strips | 5.000% | 9/25/24 | N/R | 5,223 | |||||||||||||||||||||||
3 | Fannie Mae Mortgage Pool FN AL1187 | 5.500% | 7/01/24 | N/R | 3,495 | |||||||||||||||||||||||
671 | Fannie Mae Mortgage Pool FN 255956 | 5.500% | 10/01/25 | N/R | 734,271 | |||||||||||||||||||||||
44 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | N/R | 48,059 | |||||||||||||||||||||||
187 | Fannie Mae Mortgage Pool FN 745324 | 6.000% | 3/01/34 | N/R | 203,305 | |||||||||||||||||||||||
85 | Fannie Mae Mortgage Pool FN 725205 | 5.000% | 3/01/34 | N/R | 91,913 | |||||||||||||||||||||||
118 | Fannie Mae Mortgage Pool FN 725773 | 5.500% | 9/01/34 | N/R | 131,266 | |||||||||||||||||||||||
47 | Fannie Mae Mortgage Pool FN 735060 | 6.000% | 11/01/34 | N/R | 53,717 | |||||||||||||||||||||||
35 | Fannie Mae Mortgage Pool FN 824163 | 5.500% | 4/01/35 | N/R | 38,626 | |||||||||||||||||||||||
55 | Fannie Mae Mortgage Pool FN 831377 | 6.500% | 4/01/36 | N/R | 62,025 | |||||||||||||||||||||||
23 | Fannie Mae Mortgage Pool FN 852909 | 6.500% | 4/01/36 | N/R | 25,181 | |||||||||||||||||||||||
86 | Fannie Mae Mortgage Pool FN 893318 | 6.500% | 8/01/36 | N/R | 95,971 | |||||||||||||||||||||||
12 | Fannie Mae Mortgage Pool FN 905597 | 3.548% | 12/01/36 | N/R | 12,293 | |||||||||||||||||||||||
47 | Fannie Mae Mortgage Pool FN 944340 | 6.000% | 6/01/37 | N/R | 53,089 | |||||||||||||||||||||||
34 | Fannie Mae Mortgage Pool FN 946228 | 3.364% | 9/01/37 | N/R | 34,860 | |||||||||||||||||||||||
46 | Fannie Mae Mortgage Pool FN 256890 | 6.000% | 9/01/37 | N/R | 47,996 | |||||||||||||||||||||||
— | (6) | Fannie Mae Mortgage Pool FN 889618 | 5.500% | 5/01/38 | N/R | 120 | ||||||||||||||||||||||
— | (6) | Fannie Mae Mortgage Pool FN 985344 | 5.500% | 7/01/38 | N/R | 71 | ||||||||||||||||||||||
211 | Fannie Mae Mortgage Pool FN AA0005 | 5.500% | 11/01/38 | N/R | 233,272 | |||||||||||||||||||||||
137 | Fannie Mae Mortgage Pool FN AA0889 | 5.500% | 12/01/38 | N/R | 150,286 | |||||||||||||||||||||||
9,511 | Fannie Mae Mortgage Pool FN AS7348 | 3.500% | 6/01/46 | N/R | 9,775,495 | |||||||||||||||||||||||
9,307 | Fannie Mae Mortgage Pool FN AS8269 | 3.000% | 11/01/46 | N/R | 9,313,090 | |||||||||||||||||||||||
5,430 | Fannie Mae TBA, (WI/DD) | 4.500% | TBA | N/R | 5,770,190 | |||||||||||||||||||||||
18,600 | Fannie Mae TBA, (WI/DD) | 4.000% | TBA | N/R | 19,435,024 | |||||||||||||||||||||||
28,215 | Fannie Mae TBA, (WI/DD) | 3.500% | TBA | N/R | 28,938,979 | |||||||||||||||||||||||
15,205 | Fannie Mae TBA, (WI/DD) | 3.000% | TBA | N/R | 15,187,253 | |||||||||||||||||||||||
2,000 | Fifth Third Auto Trust, Series 2017-1 | 1.800% | 2/15/22 | AAA | 1,985,419 | |||||||||||||||||||||||
2,050 | Finance of America Structured Security Trust, Series 2017-HB1, 144A | 3.624% | 11/25/27 | Baa2 | 2,045,797 | |||||||||||||||||||||||
3,714 | Flagstar Mortgage Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 3,753,730 | |||||||||||||||||||||||
7,141 | Freddie Mac Gold Mortgage Pool | 3.500% | 2/01/47 | N/R | 7,347,466 |
98 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
$ | 11,683 | Freddie Mac Gold Mortgage Pool, (WI/DD) | 3.500% | 11/01/47 | N/R | $ | 12,021,441 | |||||||||||||||||||||
226 | Freddie Mac Mortgage Pool, Various | 6.500% | 7/01/31 | N/R | 250,541 | |||||||||||||||||||||||
46 | Freddie Mac Mortgage Pool, Various | 7.000% | 8/01/37 | N/R | 49,593 | |||||||||||||||||||||||
2,465 | Goldman Sachs Mortgage Securities Trust, Mortgage Pass Through Certificates, Series 2015-GC32 | 3.345% | 7/10/48 | BBB– | 2,038,919 | |||||||||||||||||||||||
6 | Government National Mortgage Association, Guaranteed REMIC Pass-Through Securities and MX Securities Trust | 4.500% | 5/16/38 | N/R | 5,575 | |||||||||||||||||||||||
3,000 | Honda Auto Receivables Owner Trust 2017-2 | 1.870% | 9/15/23 | AAA | 2,968,113 | |||||||||||||||||||||||
1,149 | Impact Secured Assets Corporation, Mortgage Pass-Through Certificates, Series 2000-3 | 8.000% | 10/25/30 | CCC | 1,109,769 | |||||||||||||||||||||||
3,556 | Invitation Homes Trust 2015-SFR1, 144A, (1-Month LIBOR reference rate + 1.450% spread), (5) | 3.009% | 3/17/32 | Aaa | 3,572,666 | |||||||||||||||||||||||
1,872 | Invitation Homes Trust 2017-SFR3, 144A, (1-Month LIBOR reference rate + 0.850% spread), (5) | 2.406% | 12/17/36 | Aaa | 1,878,153 | |||||||||||||||||||||||
680 | JP Morgan Alternative Loan Trust, Mortgage Pass-Through Certificates, Series 2007-S1, (1-Month LIBOR reference rate + 0.280% spread), (5) | 1.841% | 4/25/47 | Caa1 | 663,944 | |||||||||||||||||||||||
5,000 | JP Morgan Chase Commercial Mortgage Securities Corporation, Pass Through Certificates Trust 2017-MAUI, 144A, (1-Month LIBOR reference rate + 0.830% spread), (5) | 2.383% | 7/15/34 | AAA | 5,003,155 | |||||||||||||||||||||||
1,500 | JP Morgan Chase Commercial Mortgage Securities Trust, Pass-Through Certificates 2017-JP5 | 3.723% | 3/15/50 | Aaa | 1,570,437 | |||||||||||||||||||||||
2,202 | Master RePerforming Loan Trust 2005-1, 144A | 7.500% | 8/25/34 | B3 | 2,273,240 | |||||||||||||||||||||||
2,750 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, 144A | 4.755% | 6/15/47 | BBB– | 2,423,020 | |||||||||||||||||||||||
1,955 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, 144A | 4.241% | 4/15/48 | BBB– | 1,685,556 | |||||||||||||||||||||||
1,930 | New Residential Advance Receivable Trust , Series 2016-T1, 144A | 4.377% | 6/15/49 | BBB | 1,929,855 | |||||||||||||||||||||||
3,100 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 4.002% | 2/15/51 | BBB | 3,083,540 | |||||||||||||||||||||||
3,305 | New Residential Mortgage Loan Trust, Mortgage Pass Through Certificates, Series 2017-6A, 144A | 4.000% | 8/27/57 | Aaa | 3,391,454 | |||||||||||||||||||||||
3,900 | OMART Receivables Trust, Series 2016-T2, 144A | 4.446% | 8/16/49 | BBB | 3,801,229 | |||||||||||||||||||||||
82 | Residential Accredit Loans Inc., Mortgage Asset-Backed Pass-Through Certificates, Series 2005-QS12 | 5.500% | 8/25/35 | Caa2 | 79,134 | |||||||||||||||||||||||
1,710 | Sequoia Mortgage Trust, Mortgage Pass Through Certificates, Series 2017-CH2, 144A | 4.000% | 12/25/47 | Aaa | 1,740,416 | |||||||||||||||||||||||
4,401 | Shellpoint Co-Originator Trust, Series 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 4,513,389 | |||||||||||||||||||||||
3,144 | Starwood Waypoint Homes Trust, 2017-1, 144A, (1-Month LIBOR reference rate + 0.950% spread), (5) | 2.506% | 1/17/35 | Aaa | 3,158,428 | |||||||||||||||||||||||
1,827 | Taco Bell Funding LLC, Series 2016-1A, 144A | 4.377% | 5/25/46 | BBB | 1,884,641 |
NUVEEN | 99 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
$ | 199 | Wachovia Mortgage Loan Trust LLC, Mortgage Pass-Through Certificates, Series 2005-B | 3.740% | 10/20/35 | D | $ | 190,219 | |||||||||||||||||||||
170 | Washington Mutual Mortgage Securities Corporation, Mortgage Pass-Through Certificates, Series 2004-RA3 | 6.277% | 8/25/38 | AA | 178,077 | |||||||||||||||||||||||
1,635 | Wells Fargo Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-C30, 144A | 4.497% | 9/15/58 | BBB– | 1,469,120 | |||||||||||||||||||||||
11 | Wells Fargo Mortgage Backed Securities, 2005-AR16 Class 3A2 | 3.500% | 3/25/35 | AA+ | 10,785 | |||||||||||||||||||||||
2,580 | World Omni Auto Receivables Trust, Series 2016-B | 1.300% | 2/15/22 | AAA | 2,554,814 | |||||||||||||||||||||||
$ | 229,989 | Total Asset-Backed and Mortgage-Backed Securities (cost $230,971,150) |
| 231,886,824 | ||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 6.7% |
| |||||||||||||||||||||||||||
Automobiles – 0.3% | ||||||||||||||||||||||||||||
$ | 2,470 | General Motors Financial Company Inc. | 5.750% | N/A | (4) | BB+ | $ | 2,543,680 | ||||||||||||||||||||
Banks – 2.6% | ||||||||||||||||||||||||||||
2,695 | Bank of America Corporation, (3) | 6.300% | N/A | (4) | BBB– | 3,045,350 | ||||||||||||||||||||||
1,935 | Citigroup Inc. | 6.250% | N/A | (4) | BB+ | 2,134,305 | ||||||||||||||||||||||
2,000 | Cobank Agricultural Credit Bank | 6.250% | N/A | (4) | BBB+ | 2,198,024 | ||||||||||||||||||||||
4,000 | JPMorgan Chase & Company, (3) | 6.750% | N/A | (4) | BBB– | 4,530,000 | ||||||||||||||||||||||
2,797 | KeyCorp Convertible Preferred Stock | 5.000% | N/A | (4) | Baa3 | 2,880,910 | ||||||||||||||||||||||
1,000 | M&T Bank Corporation | 5.125% | N/A | (4) | Baa2 | 1,066,300 | ||||||||||||||||||||||
4,570 | SunTrust Bank Inc. | 5.050% | N/A | (4) | Baa3 | 4,627,125 | ||||||||||||||||||||||
1,000 | Wachovia Capital Trust III, (3-Month LIBOR reference rate + 0.930% spread, 5.570% Floor), (5) | 5.570% | N/A | (4) | BBB | 1,007,500 | ||||||||||||||||||||||
19,997 | Total Banks | 21,489,514 | ||||||||||||||||||||||||||
Capital Markets – 1.0% | ||||||||||||||||||||||||||||
2,325 | Bank of New York Mellon | 4.950% | N/A | (4) | Baa1 | 2,406,491 | ||||||||||||||||||||||
3,005 | Goldman Sachs Group Inc. | 5.300% | N/A | (4) | Ba1 | 3,192,813 | ||||||||||||||||||||||
1,000 | Morgan Stanley | 5.550% | N/A | (4) | BB+ | 1,038,750 | ||||||||||||||||||||||
1,605 | State Street Corporation | 5.250% | N/A | (4) | Baa1 | 1,683,324 | ||||||||||||||||||||||
7,935 | Total Capital Markets | 8,321,378 | ||||||||||||||||||||||||||
Commercial Services & Supplies – 0.2% | ||||||||||||||||||||||||||||
1,550 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB | 1,693,375 | |||||||||||||||||||||||
Consumer Finance – 0.8% | ||||||||||||||||||||||||||||
2,020 | American Express Company | 5.200% | N/A | (4) | Baa2 | 2,075,550 |
100 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Consumer Finance (continued) | ||||||||||||||||||||||||||||
$ | 3,920 | Capital One Financial Corporation | 5.550% | N/A | (4) | Baa3 | $ | 4,057,200 | ||||||||||||||||||||
5,940 | Total Consumer Finance | 6,132,750 | ||||||||||||||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||||||||||
4,086 | General Electric Capital Corporation | 5.000% | N/A | (4) | A– | 4,211,032 | ||||||||||||||||||||||
1,000 | OAS Financial Limited, 144A, (7) | 0.000% | N/A | (4) | N/R | 47,500 | ||||||||||||||||||||||
5,086 | Total Industrial Conglomerates | 4,258,532 | ||||||||||||||||||||||||||
Insurance – 0.8% | ||||||||||||||||||||||||||||
2,000 | Allstate Corporation | 5.750% | 8/15/23 | Baa1 | 2,182,000 | |||||||||||||||||||||||
3,730 | MetLife Inc. | 5.250% | N/A | (4) | BBB | 3,878,230 | ||||||||||||||||||||||
5,730 | Total Insurance | 6,060,230 | ||||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||||||||||
750 | Plains All American Pipeline L.P, (3) | 6.125% | N/A | (4) | BB | 748,875 | ||||||||||||||||||||||
Food Products – 0.4% | ||||||||||||||||||||||||||||
2,780 | Land O’ Lakes Incorporated, 144A | 8.000% | N/A | (4) | BB | 3,113,600 | ||||||||||||||||||||||
$ | 52,238 | Total $1,000 Par (or similar) Institutional Preferred (cost $52,612,468) |
| 54,361,934 | ||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 4.9% (8) |
| |||||||||||||||||||||||||||
Banks – 3.7% | ||||||||||||||||||||||||||||
$ | 1,590 | Australia and New Zealand Banking Group Limited of the United Kingdom, 144A, (3) | 6.750% | N/A | (4) | Baa2 | $ | 1,808,625 | ||||||||||||||||||||
1,400 | Banco Bilbao Vizcaya Argentaria S.A | 6.125% | N/A | (4) | BB | 1,443,750 | ||||||||||||||||||||||
1,300 | Banco Mercantil del Norte, 144A | 7.625% | N/A | (4) | BB | 1,423,500 | ||||||||||||||||||||||
2,000 | Credit Agricole SA, 144A | 8.125% | N/A | (4) | BBB– | 2,398,424 | ||||||||||||||||||||||
2,410 | HSBC Holdings PLC | 6.875% | N/A | (4) | BBB | 2,596,775 | ||||||||||||||||||||||
2,000 | ING Groep N.V | 6.000% | N/A | (4) | BBB– | 2,073,000 | ||||||||||||||||||||||
2,300 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A | (4) | BB– | 2,489,750 | ||||||||||||||||||||||
3,000 | Lloydys Banking Group PLC | 7.500% | N/A | (4) | BB+ | 3,401,250 | ||||||||||||||||||||||
1,600 | Nordea Bank AB, 144A | 6.125% | N/A | (4) | BBB | 1,722,400 | ||||||||||||||||||||||
3,134 | Royal Bank of Scotland Group PLC | 7.500% | N/A | (4) | BB– | 3,314,205 | ||||||||||||||||||||||
1,000 | Societe Generale, 144A | 7.375% | N/A | (4) | BB+ | 1,083,800 | ||||||||||||||||||||||
1,880 | Standard Chartered PLC, 144A | 7.500% | N/A | (4) | Ba1 | 2,035,100 | ||||||||||||||||||||||
1,535 | UniCredit SpA, Reg S | 8.000% | N/A | (4) | B+ | 1,679,972 | ||||||||||||||||||||||
2,395 | Westpac Banking Corp. | 5.000% | N/A | (4) | Baa2 | 2,387,860 | ||||||||||||||||||||||
27,544 | Total Banks | 29,858,411 | ||||||||||||||||||||||||||
Capital Markets – 0.9% | ||||||||||||||||||||||||||||
2,000 | Credit Suisse Group AG, 144A | 7.500% | N/A | (4) | BB | 2,284,800 |
NUVEEN | 101 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Capital Markets (continued) | ||||||||||||||||||||||||||||
$ | 2,000 | Macquarie Bank Limited, 144A | 0.000% | N/A | (4) | Ba1 | $ | 2,077,500 | ||||||||||||||||||||
2,800 | UBS Group AG, Reg S | 7.125% | N/A | (4) | BBB– | 2,973,040 | ||||||||||||||||||||||
6,800 | Total Capital Markets | 7,335,340 | ||||||||||||||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||
2,330 | BNP Paribas, 144A | 7.375% | N/A | (4) | BBB– | 2,691,150 | ||||||||||||||||||||||
$ | 36,674 | Total Contingent Capital Securities (cost $37,764,813) |
| 39,884,901 | ||||||||||||||||||||||||
Principal Amount (000) (9) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
SOVEREIGN DEBT – 4.0% |
| |||||||||||||||||||||||||||
Egypt – 0.4% | ||||||||||||||||||||||||||||
$ | 3,090 | Arab Republic of Egypt, 144A | 6.125% | 1/31/22 | B | $ | 3,232,295 | |||||||||||||||||||||
El Salvador – 0.2% | ||||||||||||||||||||||||||||
1,100 | Republic of El Salvador, 144A | 6.375% | 1/18/27 | B– | 1,119,250 | |||||||||||||||||||||||
Germany – 1.5% | ||||||||||||||||||||||||||||
10,300 | EUR | Deutschland Republic, Reg S | 0.250% | 2/15/27 | Aaa | 12,241,470 | ||||||||||||||||||||||
Honduras – 0.4% | ||||||||||||||||||||||||||||
2,800 | Republic of Honduras, 144A | 8.750% | 12/16/20 | BB– | 3,137,260 | |||||||||||||||||||||||
Mexico – 0.9% | ||||||||||||||||||||||||||||
1,687 | MXN | Mexico Bonos de DeSarrollo | 5.750% | 3/05/26 | A3 | 7,584,186 | ||||||||||||||||||||||
Saudi Arabia – 0.4% | ||||||||||||||||||||||||||||
3,250 | Saudi Government International Bond, 144A | 3.625% | 3/04/28 | A1 | 3,220,750 | |||||||||||||||||||||||
Sri Lanka – 0.2% | ||||||||||||||||||||||||||||
1,400 | Republic of Sri Lanka, 144A | 6.125% | 6/03/25 | B+ | 1,479,867 | |||||||||||||||||||||||
Total Sovereign Debt (cost $31,705,342) |
| 32,015,078 | ||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 2.8% |
| |||||||||||||||||||||||||||
$ | 23,155 | United States Treasury Notes | 1.750% | 9/30/22 | Aaa | $ | 22,688,219 | |||||||||||||||||||||
$ | 23,155 | Total U.S. Government and Agency Obligations (cost $22,792,800) |
| 22,688,219 | ||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon (10) | Reference Rate (10) | Spread (10) | Maturity (11) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 0.7% (10) |
| |||||||||||||||||||||||||||
Containers & Packaging – 0.2% | ||||||||||||||||||||||||||||
$ | 1,000 | Packaging Coordinators Inc., Second Lien Term Loan | 10.320% | 3-Month LIBOR | 8.750% | 6/30/24 | CCC+ | $ | 1,000,000 |
102 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon (10) | Reference Rate (10) | Spread (10) | Maturity (11) | Ratings (2) | Value | |||||||||||||||||||||
Containers & Packaging (continued) | ||||||||||||||||||||||||||||
$ | 993 | Packaging Coordinators Inc., First Lien Term Loan | 5.570% | 3-Month LIBOR | 4.000% | 6/29/23 | B | $ | 988,389 | |||||||||||||||||||
1,993 | Total Containers & Packaging |
| 1,988,389 | |||||||||||||||||||||||||
Diversified Financial Services – 0.1% | �� | |||||||||||||||||||||||||||
879 | Jill Acquisition LLC, First Lien Term Loan B | 6.380% | 3-Month LIBOR | 5.000% | 5/08/22 | B | 832,442 | |||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.1% | ||||||||||||||||||||||||||||
65 | Empire Generating Company LLC, Term Loan C | 5.630% | 3-Month LIBOR | 4.250% | 3/13/21 | B | 54,619 | |||||||||||||||||||||
660 | Empire Generating Company LLC | 5.630% | 3-Month LIBOR | 4.250% | 3/13/21 | B | 552,452 | |||||||||||||||||||||
725 | Total Independent Power & Renewable Electricity Producers |
| 607,071 | |||||||||||||||||||||||||
Professional Services – 0.3% | ||||||||||||||||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 7.319% | 3-Month LIBOR | 5.750% | 2/28/22 | CCC+ | 1,008,750 | |||||||||||||||||||||
1,000 | Sedgwick Claims Management Service Inc., Second Lien Term Loan | 7.229% | 3-Month LIBOR | 5.750% | 2/28/22 | CCC+ | 1,010,000 | |||||||||||||||||||||
2,000 | Total Professional Services |
| 2,018,750 | |||||||||||||||||||||||||
$ | 5,597 | Total Variable Rate Senior Loan Interests (cost $5,540,109) |
| 5,446,652 | ||||||||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETIAL PREFERRED – 0.3% |
| |||||||||||||||||||||||||||
Banks – 0.3% | ||||||||||||||||||||||||||||
20,600 | AgriBank FCB, (12) | 6.875% | BBB+ | $ | 2,255,700 | |||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $2,060,000) |
| 2,255,700 | ||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (13) | Ratings (2) | Value | ||||||||||||||||||||||||
MUNICIPAL BONDS – 0.2% |
| |||||||||||||||||||||||||||
Georgia – 0.2% | ||||||||||||||||||||||||||||
$ | 1,550 | Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project P Bonds, Refunding Taxable Build America Bonds Series 2010A, 7.055%, 4/01/57 | No Opt. Call | A– | $ | 1,915,273 | ||||||||||||||||||||||
$ | 1,550 | Total Municipal Bonds (cost $1,686,525) |
| 1,915,273 |
NUVEEN | 103 |
Nuveen Strategic Income Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||||||||||
COMMON STOCKS – 0.0% |
| |||||||||||||||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||||||||||
49 | Dayton Superior Class A, (14), (15) | $ | 2,839 | |||||||||||||||||||||||||
55 | Dayton Superior Class 1, (15) | 3,154 | ||||||||||||||||||||||||||
Total Building Products | 5,993 | |||||||||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.0% | ||||||||||||||||||||||||||||
8,064 | Dynegy Inc. | 95,558 | ||||||||||||||||||||||||||
Total Common Stocks (cost $270,063) | 101,551 | |||||||||||||||||||||||||||
Total Long-Term Investments (cost $784,019,584) | 798,164,008 | |||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 2.3% | ||||||||||||||||||||||||||||
Money Market Funds – 2.3% | ||||||||||||||||||||||||||||
18,877,725 | First American Government Obligations Fund, Class X, (17) | 1.196% (16) | $ | 18,877,725 | ||||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $18,877,725) |
| 18,877,725 | ||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 9.7% | ||||||||||||||||||||||||||||
Money Market Funds – 9.7% | ||||||||||||||||||||||||||||
78,670,593 | First American Treasury Obligations Fund, Class Z | 1.181% (16) | $ | 78,670,593 | ||||||||||||||||||||||||
Total Short-Term Investments (cost $78,670,593) | 78,670,593 | |||||||||||||||||||||||||||
Total Investments (cost $881,567,902) – 110.4% | 895,712,326 | |||||||||||||||||||||||||||
Other Assets Less Liabilities – (10.4)% (18) | (84,133,409 | ) | ||||||||||||||||||||||||||
Net Assets – 100% | $ | 811,578,917 |
Investments in Derivatives
Forward Foreign Currency Contracts
Currency Purchased | Notional Amount (Local Currency) | Currency Sold | Notional Amount (Local Currency) | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) (U.S. Dollars) | ||||||||||||||||||
U.S. Dollar | 1,052,350 | Canadian Dollar | 1,339,000 | Goldman Sacks Bank USA | 1/16/18 | $ | (13,223 | ) | ||||||||||||||||
U.S. Dollar | 476,981 | Euro | 410,000 | Citibank, National Association | 1/16/18 | (15,509 | ) | |||||||||||||||||
U.S. Dollar | 12,157,177 | Euro | 10,260,000 | Bank of America, N.A. | 2/13/18 | (187,235 | ) | |||||||||||||||||
U.S. Dollar | 8,051,982 | Mexican Peso | 154,900,000 | Bank of America, N.A. | 1/29/18 | 223,498 | ||||||||||||||||||
Total | $ | 7,531 | ||||||||||||||||||||||
Total unrealized appreciation on forward foreign currency contracts | $ | 223,498 | ||||||||||||||||||||||
Total unrealized depreciation on forward foreign currency contracts | $ | (215,967 | ) |
Credit Default Swaps – OTC Cleared
Referenced Entity | Buy/Sell Protection (19) | Notional Amount | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Maturity Date | Value | Premiums Paid (Received) | Unrealized Appreciation | Variation Margin Receivable/ | |||||||||||||||||||||||||||
Markit CDX.NA.HY.29 | Buy | $ | 40,000,000 | 5.000 | % | Quarterly | 12/20/22 | $ | (3,379,553 | ) | $ | (3,103,674 | ) | $ | (275,879 | ) | $ | (59,122 | ) |
104 | NUVEEN |
Futures Contracts
Description | Contract Position | Number of Contracts | Contract Expiration | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury 5-Year Note | Long | 399 | 3/18 | $ | 46,606,032 | $ | 46,349,461 | $ | (256,571 | ) | $ | 37,406 | ||||||||||||||||
U.S. Treasury 10-Year Note | Short | (655 | ) | 3/18 | (81,631,982 | ) | (81,250,703 | ) | 381,279 | (124,350 | ) | |||||||||||||||||
U.S. Treasury Long Bond | Long | 155 | 3/18 | 23,747,775 | 23,715,000 | (32,775 | ) | 43,594 | ||||||||||||||||||||
U.S. Treasury Ultra 10-Year Note | Short | (345 | ) | 3/18 | (46,221,583 | ) | (46,079,063 | ) | 142,520 | (97,031 | ) | |||||||||||||||||
U.S. Treasury Ultra Bond | Long | 268 | 3/18 | 44,694,061 | 44,931,875 | 237,814 | 117,250 | |||||||||||||||||||||
Total | $ | (12,805,697 | ) | $ | (12,333,430 | ) | $ | 472,267 | $ | (23,131 | ) | |||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 198,250 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (221,381 | ) |
* | Total aggregate notional amount of long and short positions is $91,300,093 and $(104,105,790), respectively. |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $18,174,658. |
(4) | Perpetual security. Maturity date is not applicable. |
(5) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(6) | Principal Amount (000) rounds to less than $1,000. |
(7) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund’s records. |
(8) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. |
(9) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(10) | Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan. The rate shown is the coupon as of the end of the reporting period. |
(11) | Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown. |
(12) | For fair value measurement purposes, investment classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
(13) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgagebacked securities may be subject to periodic principal paydowns. |
(14) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(15) | 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. |
(16) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(17) | 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. |
(18) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
(19) | The Fund entered into the credit default swaps to gain investment exposure to the referenced entity. Selling protection has a similar credit risk position to owning the referenced entity. Buying protection has a similar credit risk position to selling the referenced entity short. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
CAD | Canadian Dollar |
EUR | Euro |
MXN | Mexican Peso |
LIBOR | London Inter-Bank Offered Rate |
Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN | 105 |
Assets and Liabilities | December 31, 2017 (Unaudited) |
Core Bond | Core Plus Bond | High Income Bond | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $132,722,820, $358,506,507 and $348,815,239, respectively) | $ | 135,862,149 | $ | 367,060,535 | $ | 333,449,068 | ||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 1,008,625 | 2,110,300 | 32,559,058 | |||||||||
Short-term investments, at value (cost approximates value) | 1,981,954 | 33,679,639 | 11,637,062 | |||||||||
Cash denominated in foreign currencies (cost $—, $— and $68,832, respectively) | — | — | 70,480 | |||||||||
Cash | 11,805 | 72,239 | — | |||||||||
Cash collateral at brokers for investments in futures contracts(1) | 59,600 | 334,600 | 22,000 | |||||||||
Cash collateral at brokers for investments in swaps(1) | — | 361,376 | — | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 25,788 | |||||||||
Receivable for: | ||||||||||||
Dividends | — | — | 95,018 | |||||||||
Due from broker | 309 | 1,587 | 56,232 | |||||||||
Interest | 871,794 | 2,523,510 | 5,937,702 | |||||||||
Investments sold | — | 2,250,081 | 237,151 | |||||||||
Reclaims | — | 31,127 | — | |||||||||
Shares sold | 324,862 | 1,698,323 | 2,065,648 | |||||||||
Variation margin on futures contracts | 20,714 | 39,750 | 3,656 | |||||||||
Variation margin on swap contracts | — | 4,032 | — | |||||||||
Other assets | 52,642 | 70,387 | 87,307 | |||||||||
Total assets | 140,194,454 | 410,237,486 | 386,246,170 | |||||||||
Liabilities | ||||||||||||
Credit default swaps premiums received | — | 262,243 | — | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | 55,933 | 59,921 | |||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 1,008,625 | 2,110,300 | 32,559,058 | |||||||||
Dividends | 104,199 | 481,395 | 285,580 | |||||||||
Investments purchased | 1,793,352 | 32,590,035 | — | |||||||||
Shares redeemed | 128,348 | 697,422 | 4,167,833 | |||||||||
Variation margin on future contracts | 32,375 | 11,480 | — | |||||||||
Variation margin on swap contracts | — | — | — | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 34,641 | 107,682 | 158,934 | |||||||||
Directors fees | 20,142 | 34,349 | 35,703 | |||||||||
Shareholder servicing agent fees | 14,663 | 61,856 | 60,431 | |||||||||
12b-1 distribution and service fees | 4,307 | 18,170 | 69,063 | |||||||||
Other | 51,343 | 169,971 | 64,200 | |||||||||
Total liabilities | 3,191,995 | 36,600,836 | 37,460,723 | |||||||||
Net assets | $ | 137,002,459 | $ | 373,636,650 | $ | 348,785,447 |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
106 | NUVEEN |
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $602,631,967, $513,238,597 and $784,019,584, respectively) | $ | 609,072,357 | $ | 511,988,236 | $ | 798,164,008 | ||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 1,642,688 | 7,882,205 | 18,877,725 | |||||||||
Short-term investments, at value (cost approximates value) | 8,108,769 | 875,738 | 78,670,593 | |||||||||
Cash denominated in foreign currencies (cost $—, $— and $—, respectively) | — | — | — | |||||||||
Cash | 15,329 | — | 360,052 | |||||||||
Cash collateral at brokers for investments in futures contracts(1) | 149,000 | 180,900 | 949,600 | |||||||||
Cash collateral at brokers for investments in swaps(1) | — | — | 5,195,398 | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 223,498 | |||||||||
Receivable for: | ||||||||||||
Dividends | 3,625 | — | 35,407 | |||||||||
Due from broker | 1,189 | 4,131 | 8,371 | |||||||||
Interest | 1,529,681 | 2,652,786 | 6,773,892 | |||||||||
Investments sold | — | 14,134,060 | 662,839 | |||||||||
Reclaims | — | — | — | |||||||||
Shares sold | 2,418,510 | 1,203,631 | 1,784,967 | |||||||||
Variation margin on futures contracts | 29,203 | 29,499 | 198,250 | |||||||||
Variation margin on swap contracts | — | — | — | |||||||||
Other assets | 63,307 | 88,082 | 90,633 | |||||||||
Total assets | 623,033,658 | 539,039,268 | 911,995,233 | |||||||||
Liabilities | ||||||||||||
Credit default swaps premiums received | — | — | 3,103,674 | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | 215,967 | |||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 1,642,688 | 7,882,205 | 18,877,725 | |||||||||
Dividends | 401,249 | 376,205 | 1,195,279 | |||||||||
Investments purchased | — | — | 73,922,747 | |||||||||
Shares redeemed | 1,249,969 | 831,044 | 1,861,975 | |||||||||
Variation margin on future contracts | 47,337 | 21,125 | 221,381 | |||||||||
Variation margin on swap contracts | — | — | 59,122 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 102,784 | 149,394 | 285,242 | |||||||||
Directors fees | 27,118 | 46,513 | 50,244 | |||||||||
Shareholder servicing agent fees | 315,102 | 62,095 | 151,332 | |||||||||
12b-1 distribution and service fees | 32,501 | 38,265 | 92,303 | |||||||||
Other | 90,785 | 84,055 | 379,325 | |||||||||
Total liabilities | 3,909,533 | 9,490,901 | 100,416,316 | |||||||||
Net assets | $ | 619,124,125 | $ | 529,548,367 | $ | 811,578,917 |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
NUVEEN | 107 |
Statement of Assets and Liabilities (Unaudited) (continued)
Core Bond | Core Plus Bond | High Income Bond | ||||||||||
Class A Shares | ||||||||||||
Net assets | $ | 13,547,513 | $ | 56,327,542 | $ | 132,791,552 | ||||||
Shares outstanding | 1,386,879 | 5,109,434 | 17,057,836 | |||||||||
Net asset value (“NAV”) per share | $ | 9.77 | $ | 11.02 | $ | 7.78 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 3.00%, 4.25% and 4.75%, respectively, of offering price) | $ | 10.07 | $ | 11.51 | $ | 8.17 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 1,904,363 | $ | 6,466,311 | $ | 48,043,571 | ||||||
Shares outstanding | 195,569 | 589,315 | 6,179,636 | |||||||||
NAV and offering price per share | $ | 9.74 | $ | 10.97 | $ | 7.77 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | — | $ | 1,240,593 | $ | 603,342 | ||||||
Shares outstanding | — | 111,962 | 75,903 | |||||||||
NAV and offering price per share | $ | — | $ | 11.08 | $ | 7.95 | ||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 59,270,174 | $ | 24,315,787 | $ | — | ||||||
Shares outstanding | 6,080,715 | 2,205,995 | — | |||||||||
NAV and offering price per share | $ | 9.75 | $ | 11.02 | $ | — | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 62,280,409 | $ | 285,286,417 | $ | 167,322,305 | ||||||
Shares outstanding | 6,402,120 | 25,926,351 | 21,421,987 | |||||||||
NAV and offering price per share | $ | 9.73 | $ | 11.00 | $ | 7.81 | ||||||
Class T Shares(1) | ||||||||||||
Net assets | $ | — | $ | — | $ | 24,677 | ||||||
Shares outstanding | — | — | 3,161 | |||||||||
NAV per share | $ | — | $ | — | $ | 7.81 | ||||||
Offering price per share (NAV per share plus maximum sales charge of —%, —% and 2.50%, respectively, of offering price) | $ | — | $ | — | $ | 8.01 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 136,573,828 | $ | 372,154,180 | $ | 459,921,967 | ||||||
Undistributed (Over-distribution of) net investment income | (257,967 | ) | (3,110,296 | ) | 1,457,280 | |||||||
Accumulated net realized gain (loss) | (2,535,612 | ) | (3,885,866 | ) | (97,180,868 | ) | ||||||
Net unrealized appreciation (depreciation) | 3,222,210 | 8,478,632 | (15,412,932 | ) | ||||||||
Net assets | $ | 137,002,459 | $ | 373,636,650 | $ | 348,785,447 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | 0.0001 | 0.0001 | 0.0001 |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
108 | NUVEEN |
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Class A Shares | ||||||||||||
Net assets | $ | 104,425,520 | $ | 88,190,212 | $ | 128,697,319 | ||||||
Shares outstanding | 9,428,657 | 8,985,575 | 12,133,679 | |||||||||
Net asset value (“NAV”) per share | $ | 11.08 | $ | 9.81 | $ | 10.61 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 4.25%, 2.25% and 4.25%, respectively, of offering price) | $ | 11.57 | $ | 10.04 | $ | 11.08 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 9,964,206 | $ | 22,738,580 | $ | 72,203,819 | ||||||
Shares outstanding | 914,948 | 2,306,637 | 6,843,327 | |||||||||
NAV and offering price per share | $ | 10.89 | $ | 9.86 | $ | 10.55 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 5,319,978 | $ | 423,752 | $ | 6,751,233 | ||||||
Shares outstanding | 484,767 | 43,071 | 634,174 | |||||||||
NAV and offering price per share | $ | 10.97 | $ | 9.84 | $ | 10.65 | ||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 47,011,281 | $ | 93,607,218 | $ | 46,638,517 | ||||||
Shares outstanding | 4,171,588 | 9,512,233 | 4,387,194 | |||||||||
NAV and offering price per share | $ | 11.27 | $ | 9.84 | $ | 10.63 | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 452,403,140 | $ | 324,588,605 | $ | 557,263,181 | ||||||
Shares outstanding | 40,376,917 | 33,038,736 | 52,555,333 | |||||||||
NAV and offering price per share | $ | 11.20 | $ | 9.82 | $ | 10.60 | ||||||
Class T Shares(1) | ||||||||||||
Net assets | $ | — | $ | — | $ | 24,848 | ||||||
Shares outstanding | — | — | 2,343 | |||||||||
NAV per share | $ | — | $ | — | $ | 10.61 | ||||||
Offering price per share (NAV per share plus maximum sales charge of —%, —% and 2.50%, respectively, of offering price) | $ | — | $ | — | $ | 10.88 | ||||||
Net assets consist of: | ||||||||||||
Capital paid-in | $ | 615,591,077 | $ | 544,382,584 | $ | 897,856,622 | ||||||
Undistributed (Over-distribution of) net investment income | 1,713,767 | (727,815 | ) | (13,352,992 | ) | |||||||
Accumulated net realized gain (loss) | (4,702,103 | ) | (12,700,068 | ) | (87,050,419 | ) | ||||||
Net unrealized appreciation (depreciation) | 6,521,384 | (1,406,334 | ) | 14,125,706 | ||||||||
Net assets | $ | 619,124,125 | $ | 529,548,367 | $ | 811,578,917 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | 0.0001 | 0.0001 | 0.0001 |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
NUVEEN | 109 |
Operations | Six Months Ended December 31, 2017 (Unaudited) |
Core Bond | Core Plus Bond | High Income Bond | ||||||||||
Investment Income | ||||||||||||
Dividend income | $ | — | $ | — | $ | 646,321 | ||||||
Interest income | 2,213,961 | 6,790,985 | 13,506,578 | |||||||||
Securities lending income | 2,100 | 28,419 | 208,384 | |||||||||
Total investment income | 2,216,061 | 6,819,404 | 14,361,283 | |||||||||
Expenses | ||||||||||||
Management fees | 329,434 | 866,533 | 1,065,593 | |||||||||
12b-1 service fees – Class A Shares | 16,748 | 71,999 | 166,630 | |||||||||
12b-1 distribution and service fees – Class C Shares | 8,568 | 34,877 | 241,894 | |||||||||
12b-1 distribution and service fees – Class R3 Shares | — | 3,216 | 1,844 | |||||||||
12b-1 distribution and service fees – Class T Shares(1) | — | — | 31 | |||||||||
Shareholder servicing agent fees | 32,128 | 124,450 | 141,542 | |||||||||
Custodian fees | 37,312 | 68,467 | 66,160 | |||||||||
Directors fees | 2,488 | 6,584 | 6,484 | |||||||||
Professional fees | 27,098 | 35,947 | 35,184 | |||||||||
Shareholder reporting expenses | 10,602 | 25,824 | 36,127 | |||||||||
Federal and state registration fees | 32,512 | 41,474 | 55,676 | |||||||||
Other | 5,540 | 8,386 | 40,220 | |||||||||
Total expenses before fee waiver/expense reimbursement | 502,430 | 1,287,757 | 1,857,385 | |||||||||
Fee waiver/expense reimbursement | (124,253 | ) | (221,434 | ) | (83,775 | ) | ||||||
Net expenses | 378,177 | 1,066,323 | 1,773,610 | |||||||||
Net investment income (loss) | 1,837,884 | 5,753,081 | 12,587,673 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | 653,894 | 3,852,842 | (1,890,539 | ) | ||||||||
Forward foreign currency contracts | — | (154,629 | ) | (237,092 | ) | |||||||
Futures contracts | 268,199 | 437,724 | (4,816 | ) | ||||||||
Options purchased | — | (16,404 | ) | — | ||||||||
Swaps | — | (193,771 | ) | — | ||||||||
Net change in unrealized appreciation (depreciation) of: | ||||||||||||
Investments and foreign currency | (738,149 | ) | (3,705,017 | ) | 550,006 | |||||||
Forward foreign currency contracts | — | 138,858 | 147,942 | |||||||||
Futures contracts | (108,789 | ) | (202,961 | ) | (11,807 | ) | ||||||
Options purchased | — | 13,451 | — | |||||||||
Swaps | — | (22,738 | ) | — | ||||||||
Net realized and unrealized gain (loss) | 75,155 | 147,355 | (1,446,306 | ) | ||||||||
Net increase (decrease) in net assets from operations | $ | 1,913,039 | $ | 5,900,436 | $ | 11,141,367 |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
110 | NUVEEN |
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Investment Income | ||||||||||||
Dividend income | $ | 7,250 | $ | — | $ | 112,941 | ||||||
Interest income | 6,864,318 | 6,422,498 | 16,487,124 | |||||||||
Securities lending income | 10,634 | 15,150 | 79,914 | |||||||||
Total investment income | 6,882,202 | 6,437,648 | 16,679,979 | |||||||||
Expenses | ||||||||||||
Management fees | 1,237,935 | 1,117,341 | 2,110,547 | |||||||||
12b-1 service fees – Class A Shares | 131,440 | 115,099 | 170,501 | |||||||||
12b-1 distribution and service fees – Class C Shares | 52,118 | 120,648 | 375,295 | |||||||||
12b-1 distribution and service fees – Class R3 Shares | 13,806 | 1,060 | 17,907 | |||||||||
12b-1 distribution and service fees – Class T Shares(1) | — | — | 31 | |||||||||
Shareholder servicing agent fees | 723,197 | 131,420 | 318,047 | |||||||||
Custodian fees | 47,050 | 71,049 | 100,484 | |||||||||
Directors fees | 11,003 | 9,827 | 14,316 | |||||||||
Professional fees | 45,655 | 43,008 | 52,205 | |||||||||
Shareholder reporting expenses | 48,813 | 28,848 | 71,340 | |||||||||
Federal and state registration fees | 42,998 | 48,441 | 44,622 | |||||||||
Other | 5,301 | 8,747 | 9,943 | |||||||||
Total expenses before fee waiver/expense reimbursement | 2,359,316 | 1,695,488 | 3,285,238 | |||||||||
Fee waiver/expense reimbursement | (571,334 | ) | (176,528 | ) | (406,910 | ) | ||||||
Net expenses | 1,787,982 | 1,518,960 | 2,878,328 | |||||||||
Net investment income (loss) | 5,094,220 | 4,918,688 | 13,801,651 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | 172,091 | 215,493 | 5,423,284 | |||||||||
Forward foreign currency contracts | — | — | (908,836 | ) | ||||||||
Futures contracts | 309,720 | (264,608 | ) | 1,911,065 | ||||||||
Options purchased | — | — | (71,345 | ) | ||||||||
Swaps | — | — | (2,558,311 | ) | ||||||||
Net change in unrealized appreciation (depreciation) of: | ||||||||||||
Investments and foreign currency | 6,208,761 | (2,223,062 | ) | (4,264,037 | ) | |||||||
Forward foreign currency contracts | — | — | 951,542 | |||||||||
Futures contracts | (168,421 | ) | (186,216 | ) | (545,487 | ) | ||||||
Options purchased | — | — | 58,501 | |||||||||
Swaps | — | — | 264,549 | |||||||||
Net realized and unrealized gain (loss) | 6,522,151 | (2,458,393 | ) | 260,925 | ||||||||
Net increase (decrease) in net assets from operations | $ | 11,616,371 | $ | 2,460,295 | $ | 14,062,576 |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
NUVEEN | 111 |
Changes in Net Assets | (Unaudited) |
Core Bond | Core Plus Bond | |||||||||||||||||||
Six Months Ended 12/31/17 | Year Ended 6/30/17 | Six Months Ended 12/31/17 | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 1,837,884 | $ | 3,957,122 | $ | 5,753,081 | $ | 13,462,247 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | 653,894 | 1,094,016 | 3,852,842 | 3,481,669 | ||||||||||||||||
Forward foreign currency contracts | — | — | (154,629 | ) | (377,450 | ) | ||||||||||||||
Futures contracts | 268,199 | (1,099,892 | ) | 437,724 | 117,343 | |||||||||||||||
Options purchased | — | — | (16,404 | ) | (189,915 | ) | ||||||||||||||
Swaps | — | — | (193,771 | ) | (2,414,363 | ) | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | (738,149 | ) | (4,983,483 | ) | (3,705,017 | ) | (1,417,518 | ) | ||||||||||||
Forward foreign currency contracts | — | — | 138,858 | 154,851 | ||||||||||||||||
Futures contracts | (108,789 | ) | 215,835 | (202,961 | ) | 62,649 | ||||||||||||||
Options purchased | — | — | 13,451 | (13,451 | ) | |||||||||||||||
Swaps | — | — | (22,738 | ) | 2,131,286 | |||||||||||||||
Net increase (decrease) in net assets from operations | 1,913,039 | (816,402 | ) | 5,900,436 | 14,997,348 | |||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | (154,871 | ) | (306,135 | ) | (928,373 | ) | (1,420,028 | ) | ||||||||||||
Class C Shares | (13,557 | ) | (27,096 | ) | (86,231 | ) | (132,502 | ) | ||||||||||||
Class R3 Shares | — | — | (19,215 | ) | (214,891 | ) | ||||||||||||||
Class R6 Shares | (760,845 | ) | (1,414,133 | ) | (420,127 | ) | (635,081 | ) | ||||||||||||
Class I Shares | (846,722 | ) | (2,106,287 | ) | (4,831,059 | ) | (7,238,587 | ) | ||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | (24,751 | ) | — | (796,441 | ) | ||||||||||||||
Class C Shares | — | (3,373 | ) | — | (107,897 | ) | ||||||||||||||
Class R3 Shares | — | — | — | (126,056 | ) | |||||||||||||||
Class R6 Shares | — | (102,536 | ) | — | (320,604 | ) | ||||||||||||||
Class I Shares | — | (152,775 | ) | — | (3,651,042 | ) | ||||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (1,775,995 | ) | (4,137,086 | ) | (6,285,005 | ) | (14,643,129 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 6,383,514 | 17,939,062 | 43,865,890 | 64,405,698 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 1,133,927 | 2,509,337 | 3,674,113 | 8,528,468 | ||||||||||||||||
7,517,441 | 20,448,399 | 47,540,003 | 72,934,166 | |||||||||||||||||
Cost of shares redeemed | (13,627,353 | ) | (55,410,123 | ) | (33,342,021 | ) | (107,070,562 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (6,109,912 | ) | (34,961,724 | ) | 14,197,982 | (34,136,396 | ) | |||||||||||||
Net increase (decrease) in net assets | (5,972,868 | ) | (39,915,212 | ) | 13,813,413 | (33,782,177 | ) | |||||||||||||
Net assets at the beginning of period | 142,975,327 | 182,890,539 | 359,823,237 | 393,605,414 | ||||||||||||||||
Net assets at the end of period | $ | 137,002,459 | $ | 142,975,327 | $ | 373,636,650 | $ | 359,823,237 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (257,967 | ) | $ | (319,856 | ) | $ | (3,110,296 | ) | $ | (2,578,372 | ) |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
112 | NUVEEN |
High Income Bond | Inflation Protected Securities | |||||||||||||||||||
Six Months Ended 12/31/17 | Year Ended | Six Months Ended 12/31/17 | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 12,587,673 | $ | 31,041,673 | $ | 5,094,220 | $ | 11,146,193 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (1,890,539 | ) | (1,337,739 | ) | 172,091 | 1,334,814 | ||||||||||||||
Forward foreign currency contracts | (237,092 | ) | 210,744 | — | — | |||||||||||||||
Futures contracts | (4,816 | ) | (137,663 | ) | 309,720 | (3,448,952 | ) | |||||||||||||
Options purchased | — | — | — | — | ||||||||||||||||
Swaps | — | (30,036 | ) | — | — | |||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | 550,006 | 32,917,584 | 6,208,761 | (16,784,072 | ) | |||||||||||||||
Forward foreign currency contracts | 147,942 | (114,776 | ) | — | — | |||||||||||||||
Futures contracts | (11,807 | ) | (275,326 | ) | (168,421 | ) | (295,008 | ) | ||||||||||||
Options purchased | — | — | — | — | ||||||||||||||||
Swaps | — | — | — | — | ||||||||||||||||
Net increase (decrease) in net assets from operations | 11,141,367 | 62,274,461 | 11,616,371 | (8,047,025 | ) | |||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | (4,493,959 | ) | (11,349,409 | ) | (1,336,068 | ) | (1,153,307 | ) | ||||||||||||
Class C Shares | (1,457,664 | ) | (2,883,575 | ) | (93,008 | ) | (63,715 | ) | ||||||||||||
Class R3 Shares | (23,925 | ) | (52,021 | ) | (62,529 | ) | (87,641 | ) | ||||||||||||
Class R6 Shares | — | — | (603,898 | ) | (243,084 | ) | ||||||||||||||
Class I Shares | (6,279,811 | ) | (16,098,152 | ) | (6,373,232 | ) | (5,866,832 | ) | ||||||||||||
Class T Shares(1) | (844 | ) | (141 | ) | — | — | ||||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (12,256,203 | ) | (30,383,298 | ) | (8,468,735 | ) | (7,414,579 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 144,236,788 | 527,158,862 | 96,571,561 | 327,307,816 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 10,299,982 | 23,319,008 | 3,254,069 | 3,010,711 | ||||||||||||||||
154,536,770 | 550,477,870 | 99,825,630 | 330,318,527 | |||||||||||||||||
Cost of shares redeemed | (190,400,958 | ) | (561,646,868 | ) | (87,200,114 | ) | (239,408,167 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (35,864,188 | ) | (11,168,998 | ) | 12,625,516 | 90,910,360 | ||||||||||||||
Net increase (decrease) in net assets | (36,979,024 | ) | 20,722,165 | 15,773,152 | 75,448,756 | |||||||||||||||
Net assets at the beginning of period | 385,764,471 | 365,042,306 | 603,350,973 | 527,902,217 | ||||||||||||||||
Net assets at the end of period | $ | 348,785,447 | $ | 385,764,471 | $ | 619,124,125 | $ | 603,350,973 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,457,280 | $ | 1,125,810 | $ | 1,713,767 | $ | 5,088,282 |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
NUVEEN | 113 |
Statement of Changes in Net Assets (Unaudited) (continued)
Short Term Bond | Strategic Income | |||||||||||||||||||
Six Months Ended 12/31/17 | Year Ended | Six Months Ended 12/31/17 | Year Ended | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 4,918,688 | $ | 10,231,004 | $ | 13,801,651 | $ | 32,606,064 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | 215,493 | 729,844 | 5,423,284 | (1,535,971 | ) | |||||||||||||||
Forward foreign currency contracts | — | — | (908,836 | ) | (2,742,500 | ) | ||||||||||||||
Futures contracts | (264,608 | ) | (326,015 | ) | 1,911,065 | 243,580 | ||||||||||||||
Options purchased | — | — | (71,345 | ) | (830,201 | ) | ||||||||||||||
Swaps | — | — | (2,558,311 | ) | (5,806,488 | ) | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | (2,223,062 | ) | (2,250,536 | ) | (4,264,037 | ) | 23,950,852 | |||||||||||||
Forward foreign currency contracts | — | — | 951,542 | (216,207 | ) | |||||||||||||||
Futures contracts | (186,216 | ) | 475,812 | (545,487 | ) | 1,173,900 | ||||||||||||||
Options purchased | — | — | 58,501 | (58,501 | ) | |||||||||||||||
Swaps | — | — | 264,549 | 2,651,990 | ||||||||||||||||
Net increase (decrease) in net assets from operations | 2,460,295 | 8,860,109 | 14,062,576 | 49,436,518 | ||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
From net investment income: | ||||||||||||||||||||
Class A Shares | (720,978 | ) | (1,440,422 | ) | (2,941,081 | ) | (4,700,078 | ) | ||||||||||||
Class C Shares | (94,326 | ) | (206,915 | ) | (1,330,523 | ) | (1,697,178 | ) | ||||||||||||
Class R3 Shares | (2,682 | ) | (4,210 | ) | (145,629 | ) | (189,836 | ) | ||||||||||||
Class R6 Shares | (872,039 | ) | (1,266,480 | ) | (705,477 | ) | (888,278 | ) | ||||||||||||
Class I Shares | (3,092,831 | ) | (6,537,353 | ) | (12,498,207 | ) | (14,906,062 | ) | ||||||||||||
Class T Shares(1) | — | — | (543 | ) | — | |||||||||||||||
From accumulated net realized gains: | ||||||||||||||||||||
Class A Shares | — | — | — | �� | — | |||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||||
Class T Shares(1) | — | — | — | — | ||||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | (96,946 | ) | — | (3,734,095 | ) | ||||||||||||||
Class C Shares | — | (29,934 | ) | — | (1,850,649 | ) | ||||||||||||||
Class R3 Shares | — | (357 | ) | — | (164,969 | ) | ||||||||||||||
Class R6 Shares | — | (73,173 | ) | — | (655,316 | ) | ||||||||||||||
Class I Shares | — | (378,818 | ) | — | (10,925,506 | ) | ||||||||||||||
Class T Shares(1) | — | — | — | (104 | ) | |||||||||||||||
Decrease in net assets from distributions to shareholders | (4,782,856 | ) | (10,034,608 | ) | (17,621,460 | ) | (39,712,071 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 95,109,650 | 253,678,451 | 156,381,001 | 244,895,885 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 2,458,541 | 4,633,178 | 10,529,629 | 23,514,671 | ||||||||||||||||
97,568,191 | 258,311,629 | 166,910,630 | 268,410,556 | |||||||||||||||||
Cost of shares redeemed | (127,395,170 | ) | (305,880,953 | ) | (122,068,839 | ) | (300,622,459 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (29,826,979 | ) | (47,569,324 | ) | 44,841,791 | (32,211,903 | ) | |||||||||||||
Net increase (decrease) in net assets | (32,149,540 | ) | (48,743,823 | ) | 41,282,907 | (22,487,456 | ) | |||||||||||||
Net assets at the beginning of period | 561,697,907 | 610,441,730 | 770,296,010 | 792,780,466 | ||||||||||||||||
Net assets at the end of period | $ | 529,548,367 | $ | 561,697,907 | $ | 811,578,917 | $ | 770,293,010 | ||||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (727,815 | ) | $ | (863,647 | ) | $ | (13,352,992 | ) | $ | (9,533,183 | ) |
(1) | Class T Shares are not available for public offering. |
See accompanying notes to financial statements.
114 | NUVEEN |
THIS PAGE INTENTIONALLY LEFT BLANK
NUVEEN | 115 |
Highlights (Unaudited)
Core Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (1/95) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | $ | 9.76 | $ | 0.12 | $ | — | $ | 0.12 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | 9.77 | ||||||||||||||||||||
2017 | 10.05 | 0.22 | (0.28 | ) | (0.06 | ) | (0.21 | ) | — | (0.02 | ) | (0.23 | ) | 9.76 | ||||||||||||||||||||||||||
2016 | 9.97 | 0.23 | 0.17 | 0.40 | (0.22 | ) | (0.06 | ) | (0.04 | ) | (0.32 | ) | 10.05 | |||||||||||||||||||||||||||
2015 | 10.36 | 0.25 | (0.19 | ) | 0.06 | (0.28 | ) | (0.17 | ) | — | (0.45 | ) | 9.97 | |||||||||||||||||||||||||||
2014 | 10.13 | 0.24 | 0.35 | 0.59 | (0.22 | ) | (0.14 | ) | — | (0.36 | ) | 10.36 | ||||||||||||||||||||||||||||
2013 | 10.67 | 0.18 | (0.20 | ) | (0.02 | ) | (0.18 | ) | (0.34 | ) | — | (0.52 | ) | 10.13 | ||||||||||||||||||||||||||
Class C (1/11) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.73 | 0.08 | 0.01 | 0.09 | (0.08 | ) | — | — | (0.08 | ) | 9.74 | |||||||||||||||||||||||||||||
2017 | 10.02 | 0.15 | (0.28 | ) | (0.13 | ) | (0.14 | ) | — | (0.02 | ) | (0.16 | ) | 9.73 | ||||||||||||||||||||||||||
2016 | 9.94 | 0.15 | 0.17 | 0.32 | (0.14 | ) | (0.06 | ) | (0.04 | ) | (0.24 | ) | 10.02 | |||||||||||||||||||||||||||
2015 | 10.32 | 0.17 | (0.19 | ) | (0.02 | ) | (0.19 | ) | (0.17 | ) | — | (0.36 | ) | 9.94 | ||||||||||||||||||||||||||
2014 | 10.08 | 0.16 | 0.36 | 0.52 | (0.14 | ) | (0.14 | ) | — | (0.28 | ) | 10.32 | ||||||||||||||||||||||||||||
2013 | 10.62 | 0.09 | (0.19 | ) | (0.10 | ) | (0.09 | ) | (0.35 | ) | — | (0.44 | ) | 10.08 | ||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.74 | 0.13 | 0.01 | 0.14 | (0.13 | ) | — | — | (0.13 | ) | 9.75 | |||||||||||||||||||||||||||||
2017 | 10.02 | 0.25 | (0.27 | ) | (0.02 | ) | (0.24 | ) | — | (0.02 | ) | (0.26 | ) | 9.74 | ||||||||||||||||||||||||||
2016 | 9.94 | 0.26 | 0.16 | 0.42 | (0.24 | ) | (0.06 | ) | (0.04 | ) | (0.34 | ) | 10.02 | |||||||||||||||||||||||||||
2015(e) | 10.22 | 0.12 | (0.27 | ) | (0.15 | ) | (0.13 | ) | — | — | (0.13 | ) | 9.94 | |||||||||||||||||||||||||||
Class I (1/93) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.72 | 0.13 | 0.01 | 0.14 | (0.13 | ) | — | — | (0.13 | ) | 9.73 | |||||||||||||||||||||||||||||
2017 | 10.01 | 0.24 | (0.27 | ) | (0.03 | ) | (0.24 | ) | — | (0.02 | ) | (0.26 | ) | 9.72 | ||||||||||||||||||||||||||
2016 | 9.93 | 0.25 | 0.17 | 0.42 | (0.24 | ) | (0.06 | ) | (0.04 | ) | (0.34 | ) | 10.01 | |||||||||||||||||||||||||||
2015 | 10.32 | 0.27 | (0.19 | ) | 0.08 | (0.30 | ) | (0.17 | ) | — | (0.47 | ) | 9.93 | |||||||||||||||||||||||||||
2014 | 10.09 | 0.26 | 0.22 | 0.48 | (0.11 | ) | (0.14 | ) | — | (0.25 | ) | 10.32 | ||||||||||||||||||||||||||||
2013 | 10.63 | 0.20 | (0.20 | ) | — | (0.21 | ) | (0.33 | ) | — | (0.54 | ) | 10.09 |
116 | 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) | ||||||||||||||||||||||||||||
1.28 | % | $ | 13,548 | 0.96 | %* | 2.20 | %* | 0.78 | %* | 2.37 | %* | 21 | % | |||||||||||||||||||||
(0.56 | ) | 13,182 | 0.93 | 2.09 | 0.78 | 2.24 | 85 | |||||||||||||||||||||||||||
4.12 | 15,185 | 0.87 | 2.21 | 0.78 | 2.30 | 75 | ||||||||||||||||||||||||||||
0.52 | 14,448 | 0.85 | 2.34 | 0.78 | 2.40 | 44 | ||||||||||||||||||||||||||||
5.94 | 14,857 | 0.81 | 2.29 | 0.78 | 2.32 | 49 | ||||||||||||||||||||||||||||
(0.38 | ) | 18,331 | 0.79 | 1.63 | 0.78 | 1.65 | 85 | |||||||||||||||||||||||||||
0.91 | 1,904 | 1.71 | * | 1.44 | * | 1.53 | * | 1.61 | * | 21 | ||||||||||||||||||||||||
(1.33 | ) | 1,720 | 1.68 | 1.34 | 1.53 | 1.49 | 85 | |||||||||||||||||||||||||||
3.31 | 1,767 | 1.63 | 1.46 | 1.53 | 1.55 | 75 | ||||||||||||||||||||||||||||
(0.20 | ) | 971 | 1.61 | 1.59 | 1.53 | 1.67 | 44 | |||||||||||||||||||||||||||
5.24 | 514 | 1.56 | 1.54 | 1.53 | 1.57 | 49 | ||||||||||||||||||||||||||||
(1.17 | ) | 585 | 1.54 | 0.87 | 1.53 | 0.88 | 85 | |||||||||||||||||||||||||||
1.40 | 59,270 | 0.64 | * | 2.51 | * | 0.46 | * | 2.69 | * | 21 | ||||||||||||||||||||||||
(0.22 | ) | 58,545 | 0.61 | 2.41 | 0.46 | 2.56 | 85 | |||||||||||||||||||||||||||
4.38 | 58,699 | 0.57 | 2.51 | 0.48 | 2.60 | 75 | ||||||||||||||||||||||||||||
(1.46 | ) | 45,145 | 0.56 | * | 2.60 | * | 0.48 | * | 2.68 | * | 44 | |||||||||||||||||||||||
1.41 | 62,280 | 0.71 | * | 2.44 | * | 0.53 | * | 2.62 | * | 21 | ||||||||||||||||||||||||
(0.32 | ) | 69,528 | 0.68 | 2.32 | 0.53 | 2.47 | 85 | |||||||||||||||||||||||||||
4.39 | 107,240 | 0.62 | 2.46 | 0.53 | 2.55 | 75 | ||||||||||||||||||||||||||||
0.78 | 176,468 | 0.59 | 2.59 | 0.53 | 2.65 | 44 | ||||||||||||||||||||||||||||
6.21 | 329,901 | 0.56 | 2.53 | 0.53 | 2.56 | 49 | ||||||||||||||||||||||||||||
(0.16 | ) | 481,088 | 0.54 | 1.88 | 0.53 | 1.89 | 85 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | For the six months ended December 31, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 117 |
Financial Highlights (Unaudited) (continued)
Core Plus Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (12/87) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | $ | 11.04 | $ | 0.16 | $ | — | $ | 0.16 | $ | (0.18 | ) | $ | — | $ | — | $ | (0.18 | ) | $ | 11.02 | ||||||||||||||||||||
2017 | 11.01 | 0.37 | 0.07 | 0.44 | (0.26 | ) | — | (0.15 | ) | (0.41 | ) | 11.04 | ||||||||||||||||||||||||||||
2016 | 11.25 | 0.44 | (0.22 | ) | 0.22 | (0.44 | ) | (0.02 | ) | — | (0.46 | ) | 11.01 | |||||||||||||||||||||||||||
2015 | 11.75 | 0.45 | (0.49 | ) | (0.04 | ) | (0.44 | ) | (0.02 | ) | — | (0.46 | ) | 11.25 | ||||||||||||||||||||||||||
2014 | 11.46 | 0.46 | 0.45 | 0.91 | (0.43 | ) | (0.19 | ) | — | (0.62 | ) | 11.75 | ||||||||||||||||||||||||||||
2013 | 11.64 | 0.41 | (0.12 | ) | 0.29 | (0.42 | ) | (0.05 | ) | — | (0.47 | ) | 11.46 | |||||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 10.98 | 0.12 | 0.01 | 0.13 | (0.14 | ) | — | — | (0.14 | ) | 10.97 | |||||||||||||||||||||||||||||
2017 | 10.96 | 0.29 | 0.05 | 0.34 | (0.17 | ) | — | (0.15 | ) | (0.32 | ) | 10.98 | ||||||||||||||||||||||||||||
2016 | 11.20 | 0.35 | (0.22 | ) | 0.13 | (0.35 | ) | (0.02 | ) | — | (0.37 | ) | 10.96 | |||||||||||||||||||||||||||
2015 | 11.69 | 0.36 | (0.48 | ) | (0.12 | ) | (0.35 | ) | (0.02 | ) | — | (0.37 | ) | 11.20 | ||||||||||||||||||||||||||
2014 | 11.40 | 0.37 | 0.45 | 0.82 | (0.34 | ) | (0.19 | ) | — | (0.53 | ) | 11.69 | ||||||||||||||||||||||||||||
2013 | 11.59 | 0.32 | (0.12 | ) | 0.20 | (0.34 | ) | (0.05 | ) | — | (0.39 | ) | 11.40 | |||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 11.09 | 0.15 | 0.01 | 0.16 | (0.17 | ) | — | — | (0.17 | ) | 11.08 | |||||||||||||||||||||||||||||
2017 | 11.05 | 0.36 | 0.06 | 0.42 | (0.23 | ) | — | (0.15 | ) | (0.38 | ) | 11.09 | ||||||||||||||||||||||||||||
2016 | 11.29 | 0.41 | (0.22 | ) | 0.19 | (0.41 | ) | (0.02 | ) | — | (0.43 | ) | 11.05 | |||||||||||||||||||||||||||
2015 | 11.80 | 0.42 | (0.50 | ) | (0.08 | ) | (0.41 | ) | (0.02 | ) | — | (0.43 | ) | 11.29 | ||||||||||||||||||||||||||
2014 | 11.51 | 0.43 | 0.46 | 0.89 | (0.41 | ) | (0.19 | ) | — | (0.60 | ) | 11.80 | ||||||||||||||||||||||||||||
2013 | 11.70 | 0.38 | (0.12 | ) | 0.26 | (0.40 | ) | (0.05 | ) | — | (0.45 | ) | 11.51 | |||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 11.03 | 0.18 | — | 0.18 | (0.19 | ) | — | — | (0.19 | ) | 11.02 | |||||||||||||||||||||||||||||
2017 | 11.00 | 0.41 | 0.05 | 0.46 | (0.28 | ) | — | (0.15 | ) | (0.43 | ) | 11.03 | ||||||||||||||||||||||||||||
2016 | 11.23 | 0.47 | (0.21 | ) | 0.26 | (0.47 | ) | (0.02 | ) | — | (0.49 | ) | 11.00 | |||||||||||||||||||||||||||
2015(e) | 11.48 | 0.22 | (0.26 | ) | (0.04 | ) | (0.21 | ) | — | — | (0.21 | ) | 11.23 | |||||||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 11.01 | 0.18 | — | 0.18 | (0.19 | ) | — | — | (0.19 | ) | 11.00 | |||||||||||||||||||||||||||||
2017 | 10.99 | 0.40 | 0.05 | 0.45 | (0.28 | ) | — | (0.15 | ) | (0.43 | ) | 11.01 | ||||||||||||||||||||||||||||
2016 | 11.24 | 0.46 | (0.22 | ) | 0.24 | (0.47 | ) | (0.02 | ) | — | (0.49 | ) | 10.99 | |||||||||||||||||||||||||||
2015 | 11.74 | 0.48 | (0.49 | ) | (0.01 | ) | (0.47 | ) | (0.02 | ) | — | (0.49 | ) | 11.24 | ||||||||||||||||||||||||||
2014 | 11.44 | 0.49 | 0.46 | 0.95 | (0.46 | ) | (0.19 | ) | — | (0.65 | ) | 11.74 | ||||||||||||||||||||||||||||
2013 | 11.64 | 0.44 | (0.14 | ) | 0.30 | (0.45 | ) | (0.05 | ) | — | (0.50 | ) | 11.44 |
118 | 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) | ||||||||||||||||||||||||||||
1.53 | % | $ | 56,328 | 0.89 | %* | 2.79 | %* | 0.77 | %* | 2.91 | %* | 57 | % | |||||||||||||||||||||
4.03 | 57,299 | 0.89 | 3.27 | 0.77 | 3.39 | 131 | ||||||||||||||||||||||||||||
2.07 | 61,769 | 0.87 | 3.91 | 0.77 | 4.00 | 79 | ||||||||||||||||||||||||||||
(0.41 | ) | 69,968 | 0.85 | 3.80 | 0.77 | 3.88 | 44 | |||||||||||||||||||||||||||
8.23 | 68,728 | 0.84 | 3.89 | 0.77 | 3.97 | 50 | ||||||||||||||||||||||||||||
2.40 | 79,740 | 0.81 | 3.42 | 0.77 | 3.46 | 46 | ||||||||||||||||||||||||||||
1.15 | 6,466 | 1.64 | * | 2.05 | * | 1.52 | * | 2.16 | * | 57 | ||||||||||||||||||||||||
3.16 | 6,985 | 1.64 | 2.52 | 1.52 | 2.64 | 131 | ||||||||||||||||||||||||||||
1.29 | 8,387 | 1.62 | 3.15 | 1.52 | 3.25 | 79 | ||||||||||||||||||||||||||||
(1.10 | ) | 8,580 | 1.60 | 3.06 | 1.52 | 3.15 | 44 | |||||||||||||||||||||||||||
7.43 | 7,696 | 1.59 | 3.13 | 1.52 | 3.20 | 50 | ||||||||||||||||||||||||||||
1.59 | 4,200 | 1.56 | 2.67 | 1.52 | 2.71 | 46 | ||||||||||||||||||||||||||||
1.41 | 1,241 | 1.14 | * | 2.54 | * | 1.02 | * | 2.66 | * | 57 | ||||||||||||||||||||||||
3.88 | 1,205 | 1.14 | 3.08 | 1.02 | 3.19 | 131 | ||||||||||||||||||||||||||||
1.83 | 14,871 | 1.12 | 3.64 | 1.02 | 3.74 | 79 | ||||||||||||||||||||||||||||
(0.70 | ) | 3,751 | 1.10 | 3.57 | 1.02 | 3.65 | 44 | |||||||||||||||||||||||||||
7.97 | 638 | 1.10 | 3.65 | 1.02 | 3.73 | 50 | ||||||||||||||||||||||||||||
2.11 | 350 | 1.06 | 3.18 | 1.02 | 3.22 | 46 | ||||||||||||||||||||||||||||
1.64 | 24,316 | 0.58 | * | 3.10 | * | 0.46 | * | 3.22 | * | 57 | ||||||||||||||||||||||||
4.30 | 23,798 | 0.57 | 3.58 | 0.45 | 3.70 | 131 | ||||||||||||||||||||||||||||
2.35 | 24,899 | 0.56 | 4.21 | 0.46 | 4.31 | 79 | ||||||||||||||||||||||||||||
(0.29 | ) | 43,680 | 0.54 | * | 4.14 | * | 0.46 | * | 4.22 | * | 44 | |||||||||||||||||||||||
1.73 | 285,286 | 0.64 | * | 3.04 | * | 0.52 | * | 3.16 | * | 57 | ||||||||||||||||||||||||
4.21 | 270,536 | 0.64 | 3.52 | 0.52 | 3.63 | 131 | ||||||||||||||||||||||||||||
2.26 | 283,680 | 0.62 | 4.16 | 0.52 | 4.25 | 79 | ||||||||||||||||||||||||||||
(0.15 | ) | 440,499 | 0.60 | 4.04 | 0.52 | 4.12 | 44 | |||||||||||||||||||||||||||
8.64 | 514,961 | 0.60 | 4.17 | 0.52 | 4.24 | 50 | ||||||||||||||||||||||||||||
2.52 | 588,627 | 0.56 | 3.67 | 0.52 | 3.71 | 46 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | For the six months ended December 31, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 119 |
Financial Highlights (Unaudited) (continued)
High Income Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Investment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||||||
Class A (8/01) | ||||||||||||||||||||||||||||||||||||
2018(g) | $ | 7.80 | $ | 0.27 | $ | (0.02 | ) | $ | 0.25 | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | $ | 7.78 | |||||||||||||||||
2017 | 7.22 | 0.54 | 0.57 | 1.11 | (0.53 | ) | — | (0.53 | ) | 7.80 | ||||||||||||||||||||||||||
2016 | 8.23 | 0.57 | (1.05 | ) | (0.48 | ) | (0.53 | ) | — | (0.53 | ) | 7.22 | ||||||||||||||||||||||||
2015 | 9.29 | 0.55 | (1.00 | ) | (0.45 | ) | (0.54 | ) | (0.07 | ) | (0.61 | ) | 8.23 | |||||||||||||||||||||||
2014 | 8.99 | 0.58 | 0.53 | 1.11 | (0.61 | ) | (0.20 | ) | (0.81 | ) | 9.29 | |||||||||||||||||||||||||
2013 | 8.64 | 0.63 | 0.39 | 1.02 | (0.67 | ) | — | (0.67 | ) | 8.99 | ||||||||||||||||||||||||||
Class C (8/01) | ||||||||||||||||||||||||||||||||||||
2018(g) | 7.79 | 0.24 | (0.02 | ) | 0.22 | (0.24 | ) | — | (0.24 | ) | 7.77 | |||||||||||||||||||||||||
2017 | 7.21 | 0.49 | 0.57 | 1.06 | (0.48 | ) | — | (0.48 | ) | 7.79 | ||||||||||||||||||||||||||
2016 | 8.22 | 0.53 | (1.07 | ) | (0.54 | ) | (0.47 | ) | — | (0.47 | ) | 7.21 | ||||||||||||||||||||||||
2015 | 9.27 | 0.49 | (0.99 | ) | (0.50 | ) | (0.48 | ) | (0.07 | ) | (0.55 | ) | 8.22 | |||||||||||||||||||||||
2014 | 8.98 | 0.51 | 0.52 | 1.03 | (0.54 | ) | (0.20 | ) | (0.74 | ) | 9.27 | |||||||||||||||||||||||||
2013 | 8.62 | 0.56 | 0.40 | 0.96 | (0.60 | ) | — | (0.60 | ) | 8.98 | ||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||
2018(g) | 7.96 | 0.27 | (0.02 | ) | 0.25 | (0.26 | ) | — | (0.26 | ) | 7.95 | |||||||||||||||||||||||||
2017 | 7.37 | 0.54 | 0.58 | 1.12 | (0.53 | ) | — | (0.53 | ) | 7.96 | ||||||||||||||||||||||||||
2016 | 8.40 | 0.57 | (1.08 | ) | (0.51 | ) | (0.52 | ) | — | (0.52 | ) | 7.37 | ||||||||||||||||||||||||
2015 | 9.48 | 0.53 | (1.01 | ) | (0.48 | ) | (0.53 | ) | (0.07 | ) | (0.60 | ) | 8.40 | |||||||||||||||||||||||
2014 | 9.17 | 0.57 | 0.54 | 1.11 | (0.60 | ) | (0.20 | ) | (0.80 | ) | 9.48 | |||||||||||||||||||||||||
2013 | 8.81 | 0.62 | 0.40 | 1.02 | (0.66 | ) | — | (0.66 | ) | 9.17 | ||||||||||||||||||||||||||
Class I (8/01) | ||||||||||||||||||||||||||||||||||||
2018(g) | 7.82 | 0.28 | (0.01 | ) | 0.27 | (0.28 | ) | — | (0.28 | ) | 7.81 | |||||||||||||||||||||||||
2017 | 7.24 | 0.56 | 0.57 | 1.13 | (0.55 | ) | — | (0.55 | ) | 7.82 | ||||||||||||||||||||||||||
2016 | 8.26 | 0.60 | (1.07 | ) | (0.47 | ) | (0.55 | ) | — | (0.55 | ) | 7.24 | ||||||||||||||||||||||||
2015 | 9.31 | 0.57 | (0.98 | ) | (0.41 | ) | (0.57 | ) | (0.07 | ) | (0.64 | ) | 8.26 | |||||||||||||||||||||||
2014 | 9.01 | 0.60 | 0.53 | 1.13 | (0.63 | ) | (0.20 | ) | (0.83 | ) | 9.31 | |||||||||||||||||||||||||
2013 | 8.65 | 0.66 | 0.39 | 1.05 | (0.69 | ) | — | (0.69 | ) | 9.01 | ||||||||||||||||||||||||||
Class T (5/17)(e) | ||||||||||||||||||||||||||||||||||||
2018(g) | 7.82 | 0.28 | (0.02 | ) | 0.26 | (0.27 | ) | — | (0.27 | ) | 7.81 | |||||||||||||||||||||||||
2017(f) | 7.91 | 0.05 | (0.10 | ) | (0.05 | ) | (0.04 | ) | — | (0.04 | ) | 7.82 |
120 | 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 (Losss) | Expenses | Net Investment Income (Losss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||||||
3.20 | % | $ | 132,792 | 1.05 | %* | 6.86 | %* | 1.00 | %* | 6.90 | %* | 59 | % | |||||||||||||||||||||
15.75 | 136,977 | 1.01 | 7.03 | 1.01 | 7.03 | 155 | ||||||||||||||||||||||||||||
5.48 | 114,537 | 1.03 | 7.99 | 1.03 | 7.99 | 91 | ||||||||||||||||||||||||||||
(4.82 | ) | 119,535 | 0.97 | 6.31 | 0.97 | 6.31 | 80 | |||||||||||||||||||||||||||
12.88 | 209,830 | 0.95 | 6.37 | 0.95 | 6.37 | 85 | ||||||||||||||||||||||||||||
11.99 | 141,132 | 0.94 | 6.92 | 0.94 | 6.92 | 133 | ||||||||||||||||||||||||||||
2.81 | 48,044 | 1.80 | * | 6.17 | * | 1.75 | * | 6.22 | * | 59 | ||||||||||||||||||||||||
14.93 | 47,698 | 1.76 | 6.32 | 1.76 | 6.32 | 155 | ||||||||||||||||||||||||||||
(6.27 | ) | 41,663 | 1.79 | 7.26 | 1.79 | 7.26 | 91 | |||||||||||||||||||||||||||
(5.45 | ) | 55,409 | 1.72 | 5.62 | 1.72 | 5.62 | 80 | |||||||||||||||||||||||||||
11.98 | 71,974 | 1.70 | 5.64 | 1.70 | 5.64 | 85 | ||||||||||||||||||||||||||||
11.33 | 67,466 | 1.70 | 6.21 | 1.70 | 6.21 | 133 | ||||||||||||||||||||||||||||
3.18 | 603 | 1.30 | * | 6.64 | * | 1.25 | * | 6.69 | * | 59 | ||||||||||||||||||||||||
15.46 | 756 | 1.26 | 6.80 | 1.26 | 6.81 | 155 | ||||||||||||||||||||||||||||
(5.76 | ) | 834 | 1.29 | 7.78 | 1.29 | 7.78 | 91 | |||||||||||||||||||||||||||
(5.07 | ) | 995 | 1.21 | 6.03 | 1.21 | 6.03 | 80 | |||||||||||||||||||||||||||
12.65 | 1,099 | 1.20 | 6.09 | 1.20 | 6.09 | 85 | ||||||||||||||||||||||||||||
11.79 | 697 | 1.19 | 6.69 | 1.19 | 6.69 | 133 | ||||||||||||||||||||||||||||
3.44 | 167,322 | 0.80 | * | 7.13 | * | 0.75 | * | 7.18 | * | 59 | ||||||||||||||||||||||||
15.97 | 200,310 | 0.75 | 7.31 | 0.76 | 7.31 | 155 | ||||||||||||||||||||||||||||
(5.21 | ) | 208,009 | 0.78 | 8.12 | 0.78 | 8.12 | 91 | |||||||||||||||||||||||||||
(4.55 | ) | 446,406 | 0.72 | 6.56 | 0.72 | 6.56 | 80 | |||||||||||||||||||||||||||
13.15 | 719,640 | 0.71 | 6.61 | 0.71 | 6.61 | 85 | ||||||||||||||||||||||||||||
12.39 | 495,863 | 0.70 | 7.24 | 0.70 | 7.24 | 133 | ||||||||||||||||||||||||||||
3.32 | 25 | 1.05 | * | 6.93 | * | 1.00 | * | 6.97 | * | 59 | ||||||||||||||||||||||||
(0.58 | ) | 25 | 0.98 | * | 7.78 | * | 1.00 | * | 7.78 | * | 155 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. For the period October 31, 2013 through June 29, 2016, the Adviser did not reimburse the Fund for any fees and expenses. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | Class T Shares are not available for public offering. |
(f) | For the period May 31, 2017 (commencement of operations) through June 30, 2017. |
(g) | For the six months ended December 31, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 121 |
Financial Highlights (Unaudited) (continued)
Inflation Protected Securities
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | $ | 11.01 | $ | 0.08 | $ | 0.05 | $ | 0.13 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | 11.08 | ||||||||||||||||||||
2017 | 11.30 | 0.18 | (0.35 | ) | (0.17 | ) | (0.12 | ) | — | — | (0.12 | ) | 11.01 | |||||||||||||||||||||||||||
2016 | 10.92 | 0.06 | 0.32 | 0.38 | — | — | — | — | 11.30 | |||||||||||||||||||||||||||||||
2015 | 11.26 | (0.03 | ) | (0.20 | ) | (0.23 | ) | (0.07 | ) | — | (0.04 | ) | (0.11 | ) | 10.92 | |||||||||||||||||||||||||
2014 | 11.08 | 0.15 | 0.32 | 0.47 | (0.09 | ) | (0.20 | ) | — | (0.29 | ) | 11.26 | ||||||||||||||||||||||||||||
2013 | 11.80 | 0.07 | (0.66 | ) | (0.59 | ) | (0.13 | ) | — | — | (0.13 | ) | 11.08 | |||||||||||||||||||||||||||
Class C (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 10.83 | 0.04 | 0.12 | 0.16 | (0.10 | ) | — | — | (0.10 | ) | 10.89 | |||||||||||||||||||||||||||||
2017 | 11.14 | 0.10 | (0.36 | ) | (0.26 | ) | (0.05 | ) | — | — | (0.05 | ) | 10.83 | |||||||||||||||||||||||||||
2016 | 10.84 | (0.05 | ) | 0.35 | 0.30 | — | — | — | — | 11.14 | ||||||||||||||||||||||||||||||
2015 | 11.21 | (0.11 | ) | (0.20 | ) | (0.31 | ) | (0.02 | ) | — | (0.04 | ) | (0.06 | ) | 10.84 | |||||||||||||||||||||||||
2014 | 11.03 | 0.06 | 0.35 | 0.41 | (0.03 | ) | (0.20 | ) | — | (0.23 | ) | 11.21 | ||||||||||||||||||||||||||||
2013 | 11.72 | (0.03 | ) | (0.60 | ) | (0.63 | ) | (0.06 | ) | — | — | (0.06 | ) | 11.03 | ||||||||||||||||||||||||||
Class R3 (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 10.91 | 0.07 | 0.03 | 0.10 | (0.04 | ) | — | — | (0.04 | ) | 10.97 | |||||||||||||||||||||||||||||
2017 | 11.21 | 0.15 | (0.36 | ) | (0.21 | ) | (0.09 | ) | — | — | (0.09 | ) | 10.91 | |||||||||||||||||||||||||||
2016 | 10.85 | 0.01 | 0.35 | 0.36 | — | — | — | — | 11.21 | |||||||||||||||||||||||||||||||
2015 | 11.21 | (0.11 | ) | (0.16 | ) | (0.27 | ) | (0.05 | ) | — | (0.04 | ) | (0.09 | ) | 10.85 | |||||||||||||||||||||||||
2014 | 11.05 | 0.29 | 0.14 | 0.43 | (0.07 | ) | (0.20 | ) | — | (0.27 | ) | 11.21 | ||||||||||||||||||||||||||||
2013 | 11.74 | 0.04 | (0.62 | ) | (0.58 | ) | (0.11 | ) | — | — | (0.11 | ) | 11.05 | |||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 11.19 | 0.12 | 0.11 | 0.23 | (0.15 | ) | — | — | (0.15 | ) | 11.27 | |||||||||||||||||||||||||||||
2017 | 11.46 | 0.26 | (0.39 | ) | (0.13 | ) | (0.14 | ) | — | — | (0.14 | ) | 11.19 | |||||||||||||||||||||||||||
2016 | 11.02 | 0.09 | 0.35 | 0.44 | — | — | — | — | 11.46 | |||||||||||||||||||||||||||||||
2015(e) | 11.18 | — | * | (0.16 | ) | (0.16 | ) | — | — | — | * | — | 11.02 | |||||||||||||||||||||||||||
Class I (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 11.14 | 0.10 | 0.11 | 0.21 | (0.15 | ) | — | — | (0.15 | ) | 11.20 | |||||||||||||||||||||||||||||
2017 | 11.43 | 0.22 | (0.37 | ) | (0.15 | ) | (0.14 | ) | — | — | (0.14 | ) | 11.14 | |||||||||||||||||||||||||||
2016 | 11.02 | 0.08 | 0.33 | 0.41 | — | — | — | — | 11.43 | |||||||||||||||||||||||||||||||
2015 | 11.35 | (0.01 | ) | (0.19 | ) | (0.20 | ) | (0.09 | ) | — | (0.04 | ) | (0.13 | ) | 11.02 | |||||||||||||||||||||||||
2014 | 11.14 | 0.19 | 0.33 | 0.52 | (0.11 | ) | (0.20 | ) | — | (0.31 | ) | 11.35 | ||||||||||||||||||||||||||||
2013 | 11.81 | 0.09 | (0.61 | ) | (0.52 | ) | (0.15 | ) | — | — | (0.15 | ) | 11.14 |
122 | 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) | ||||||||||||||||||||||||||||
1.94 | % | $ | 104,426 | 0.97 | %** | 1.26 | %** | 0.78 | %** | 1.45 | %** | 24 | % | |||||||||||||||||||||
(1.53 | ) | 104,588 | 0.96 | 1.47 | 0.79 | 1.65 | 49 | |||||||||||||||||||||||||||
3.48 | 93,104 | 0.96 | 0.45 | 0.83 | 0.58 | 26 | ||||||||||||||||||||||||||||
(2.04 | ) | 42,341 | 0.92 | (0.38 | ) | 0.83 | (0.29 | ) | 34 | |||||||||||||||||||||||||
4.35 | 24,020 | 0.86 | 1.30 | 0.83 | 1.33 | 48 | ||||||||||||||||||||||||||||
(5.07 | ) | 21,949 | 0.81 | 0.56 | 0.81 | 0.56 | 52 | |||||||||||||||||||||||||||
1.50 | 9,964 | 1.72 | ** | 0.49 | ** | 1.53 | ** | 0.68 | ** | 24 | ||||||||||||||||||||||||
(2.33 | ) | 10,639 | 1.71 | 0.75 | 1.54 | 0.93 | 49 | |||||||||||||||||||||||||||
2.77 | 13,131 | 1.71 | (0.61 | ) | 1.58 | (0.47 | ) | 26 | ||||||||||||||||||||||||||
(2.75 | ) | 9,366 | 1.66 | (1.06 | ) | 1.58 | (0.98 | ) | 34 | |||||||||||||||||||||||||
3.76 | 6,954 | 1.61 | 0.50 | 1.58 | 0.52 | 48 | ||||||||||||||||||||||||||||
(5.39 | ) | 9,761 | 1.56 | (0.25 | ) | 1.56 | (0.25 | ) | 52 | |||||||||||||||||||||||||
1.73 | 5,320 | 1.22 | ** | 1.01 | ** | 1.03 | ** | 1.20 | ** | 24 | ||||||||||||||||||||||||
(1.86 | ) | 5,618 | 1.21 | 1.21 | 1.04 | 1.38 | 49 | |||||||||||||||||||||||||||
3.32 | 13,094 | 1.22 | (0.05 | ) | 1.08 | 0.08 | 26 | |||||||||||||||||||||||||||
(2.38 | ) | 3,693 | 1.15 | (1.05 | ) | 1.08 | (0.98 | ) | 34 | |||||||||||||||||||||||||
3.97 | 3,447 | 1.13 | 2.63 | 1.08 | 2.68 | 48 | ||||||||||||||||||||||||||||
(5.02 | ) | 519 | 1.06 | 0.32 | 1.06 | 0.32 | 52 | |||||||||||||||||||||||||||
2.14 | 47,011 | 0.47 | ** | 1.95 | ** | 0.28 | ** | 2.14 | ** | 24 | ||||||||||||||||||||||||
(1.10 | ) | 23,654 | 0.48 | 1.12 | 0.30 | 2.30 | 49 | |||||||||||||||||||||||||||
3.99 | 3,773 | 0.50 | 0.71 | 0.37 | 0.84 | 26 | ||||||||||||||||||||||||||||
(1.39 | ) | 3,074 | 0.52 | ** | (0.12 | )** | 0.41 | ** | (0.01 | )** | 34 | |||||||||||||||||||||||
1.97 | 452,403 | 0.72 | ** | 1.50 | ** | 0.53 | ** | 1.69 | ** | 24 | ||||||||||||||||||||||||
(1.27 | ) | 458,852 | 0.71 | 1.76 | 0.54 | 1.93 | 49 | |||||||||||||||||||||||||||
3.72 | 404,801 | 0.71 | 0.57 | 0.58 | 0.70 | 26 | ||||||||||||||||||||||||||||
(1.78 | ) | 331,707 | 0.66 | (0.13 | ) | 0.58 | (0.05 | ) | 34 | |||||||||||||||||||||||||
4.82 | 321,472 | 0.61 | 1.65 | 0.58 | 1.68 | 48 | ||||||||||||||||||||||||||||
(4.46 | ) | 344,204 | 0.56 | 0.77 | 0.56 | 0.77 | 52 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | For the six months ended December 31, 2017. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 123 |
Financial Highlights (Unaudited) (continued)
Short Term Bond
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (12/92) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | $ | 9.86 | $ | 0.08 | $ | (0.05 | ) | $ | 0.03 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | 9.81 | |||||||||||||||||||
2017 | 9.88 | 0.16 | (0.02 | ) | 0.14 | (0.15 | ) | — | (0.01 | ) | (0.16 | ) | 9.86 | |||||||||||||||||||||||||||
2016 | 9.93 | 0.16 | (0.06 | ) | 0.10 | (0.15 | ) | — | — | (0.15 | ) | 9.88 | ||||||||||||||||||||||||||||
2015 | 10.05 | 0.16 | (0.13 | ) | 0.03 | (0.15 | ) | — | — | (0.15 | ) | 9.93 | ||||||||||||||||||||||||||||
2014 | 9.97 | 0.19 | 0.08 | 0.27 | (0.19 | ) | — | — | (0.19 | ) | 10.05 | |||||||||||||||||||||||||||||
2013 | 9.95 | 0.20 | 0.03 | 0.23 | (0.21 | ) | — | — | (0.21 | ) | 9.97 | |||||||||||||||||||||||||||||
Class C (10/09) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.90 | 0.04 | (0.04 | ) | — | (0.04 | ) | — | — | (0.04 | ) | 9.86 | ||||||||||||||||||||||||||||
2017 | 9.92 | 0.08 | (0.02 | ) | 0.06 | (0.07 | ) | — | (0.01 | ) | (0.08 | ) | 9.90 | |||||||||||||||||||||||||||
2016 | 9.97 | 0.09 | (0.07 | ) | 0.02 | (0.07 | ) | — | — | (0.07 | ) | 9.92 | ||||||||||||||||||||||||||||
2015 | 10.08 | 0.08 | (0.12 | ) | (0.04 | ) | (0.07 | ) | — | — | (0.07 | ) | 9.97 | |||||||||||||||||||||||||||
2014 | 10.00 | 0.11 | 0.08 | 0.19 | (0.11 | ) | — | — | (0.11 | ) | 10.08 | |||||||||||||||||||||||||||||
2013 | 9.97 | 0.12 | 0.04 | 0.16 | (0.13 | ) | — | — | (0.13 | ) | 10.00 | |||||||||||||||||||||||||||||
Class R3 (9/11) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.88 | 0.07 | (0.05 | ) | 0.02 | (0.06 | ) | — | — | (0.06 | ) | 9.84 | ||||||||||||||||||||||||||||
2017 | 9.90 | 0.13 | (0.02 | ) | 0.11 | (0.12 | ) | — | (0.01 | ) | (0.13 | ) | 9.88 | |||||||||||||||||||||||||||
2016 | 9.95 | 0.14 | (0.07 | ) | 0.07 | (0.12 | ) | — | — | (0.12 | ) | 9.90 | ||||||||||||||||||||||||||||
2015 | 10.07 | 0.13 | (0.13 | ) | — | (0.12 | ) | — | — | (0.12 | ) | 9.95 | ||||||||||||||||||||||||||||
2014 | 9.99 | 0.16 | 0.08 | 0.24 | (0.16 | ) | — | — | (0.16 | ) | 10.07 | |||||||||||||||||||||||||||||
2013 | 9.96 | 0.17 | 0.04 | 0.21 | (0.18 | ) | — | — | (0.18 | ) | 9.99 | |||||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.88 | 0.09 | (0.04 | ) | 0.05 | (0.09 | ) | — | — | (0.09 | ) | 9.84 | ||||||||||||||||||||||||||||
2017 | 9.90 | 0.19 | (0.03 | ) | 0.16 | (0.17 | ) | — | (0.01 | ) | (0.18 | ) | 9.88 | |||||||||||||||||||||||||||
2016 | 9.95 | 0.19 | (0.06 | ) | 0.13 | (0.18 | ) | — | — | (0.18 | ) | 9.90 | ||||||||||||||||||||||||||||
2015(e) | 9.93 | 0.09 | — | * | 0.09 | (0.07 | ) | — | — | (0.07 | ) | 9.95 | ||||||||||||||||||||||||||||
Class I (2/94) |
| |||||||||||||||||||||||||||||||||||||||
2018(f) | 9.87 | 0.09 | (0.05 | ) | 0.04 | (0.09 | ) | — | — | (0.09 | ) | 9.82 | ||||||||||||||||||||||||||||
2017 | 9.89 | 0.18 | (0.02 | ) | 0.16 | (0.17 | ) | — | (0.01 | ) | (0.18 | ) | 9.87 | |||||||||||||||||||||||||||
2016 | 9.94 | 0.19 | (0.06 | ) | 0.13 | (0.18 | ) | — | — | (0.18 | ) | 9.89 | ||||||||||||||||||||||||||||
2015 | 10.06 | 0.18 | (0.12 | ) | 0.06 | (0.18 | ) | — | — | (0.18 | ) | 9.94 | ||||||||||||||||||||||||||||
2014 | 9.98 | 0.21 | 0.08 | 0.29 | (0.21 | ) | — | — | (0.21 | ) | 10.06 | |||||||||||||||||||||||||||||
2013 | 9.95 | 0.22 | 0.04 | 0.26 | (0.23 | ) | — | — | (0.23 | ) | 9.98 |
124 | 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) | ||||||||||||||||||||||||||||
0.28 | % | $ | 88,190 | 0.78 | %** | 1.53 | %** | 0.72 | %** | 1.59 | %** | 59 | % | |||||||||||||||||||||
1.39 | 92,967 | 0.77 | 1.54 | 0.72 | 1.59 | 50 | ||||||||||||||||||||||||||||
1.04 | 96,201 | 0.76 | 1.60 | 0.72 | 1.64 | 43 | ||||||||||||||||||||||||||||
0.32 | 100,544 | 0.73 | 1.56 | 0.71 | 1.58 | 43 | ||||||||||||||||||||||||||||
2.69 | 116,365 | 0.73 | 1.84 | 0.71 | 1.86 | 43 | ||||||||||||||||||||||||||||
2.30 | 141,099 | 0.73 | 1.96 | 0.71 | 1.99 | 42 | ||||||||||||||||||||||||||||
(0.01 | ) | 22,739 | 1.53 | ** | 0.79 | ** | 1.47 | ** | 0.85 | ** | 59 | |||||||||||||||||||||||
0.59 | 25,326 | 1.52 | 0.79 | 1.47 | 0.85 | 50 | ||||||||||||||||||||||||||||
0.25 | 30,495 | 1.51 | 0.86 | 1.47 | 0.90 | 43 | ||||||||||||||||||||||||||||
(0.36 | ) | 33,547 | 1.48 | 0.81 | 1.46 | 0.83 | 43 | |||||||||||||||||||||||||||
1.89 | 39,347 | 1.48 | 1.11 | 1.46 | 1.13 | 43 | ||||||||||||||||||||||||||||
1.61 | 44,414 | 1.48 | 1.22 | 1.46 | 1.24 | 42 | ||||||||||||||||||||||||||||
0.23 | 424 | 1.03 | ** | 1.29 | ** | 0.97 | ** | 1.35 | ** | 59 | ||||||||||||||||||||||||
1.08 | 436 | 1.02 | 1.30 | 0.97 | 1.35 | 50 | ||||||||||||||||||||||||||||
0.74 | 285 | 1.01 | 1.34 | 0.97 | 1.38 | 43 | ||||||||||||||||||||||||||||
0.02 | 131 | 0.98 | 1.29 | 0.96 | 1.31 | 43 | ||||||||||||||||||||||||||||
2.38 | 1,049 | 0.98 | 1.59 | 0.96 | 1.61 | 43 | ||||||||||||||||||||||||||||
2.10 | 516 | 0.98 | 1.71 | 0.96 | 1.73 | 42 | ||||||||||||||||||||||||||||
0.51 | 93,607 | 0.49 | ** | 1.83 | ** | 0.42 | ** | 1.90 | ** | 59 | ||||||||||||||||||||||||
1.63 | 95,754 | 0.48 | 1.87 | 0.42 | 1.92 | 50 | ||||||||||||||||||||||||||||
1.29 | 66,836 | 0.47 | 1.91 | 0.43 | 1.95 | 43 | ||||||||||||||||||||||||||||
0.96 | 27,475 | 0.46 | ** | 1.95 | ** | 0.43 | ** | 1.98 | ** | 43 | ||||||||||||||||||||||||
0.41 | 324,589 | 0.53 | ** | 1.78 | ** | 0.47 | ** | 1.85 | ** | 59 | ||||||||||||||||||||||||
1.63 | 347,215 | 0.52 | 1.79 | 0.47 | 1.84 | 50 | ||||||||||||||||||||||||||||
1.29 | 416,624 | 0.51 | 1.85 | 0.47 | 1.89 | 43 | ||||||||||||||||||||||||||||
0.57 | 529,027 | 0.48 | 1.80 | 0.46 | 1.82 | 43 | ||||||||||||||||||||||||||||
2.93 | 915,119 | 0.48 | 2.09 | 0.46 | 2.11 | 43 | ||||||||||||||||||||||||||||
2.65 | 720,722 | 0.48 | 2.22 | 0.46 | 2.23 | 42 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | For the six months ended December 31, 2017. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 125 |
Financial Highlights (Unaudited) (continued)
Strategic Income
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (2/00) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | $ | 10.65 | $ | 0.18 | $ | 0.01 | $ | 0.19 | $ | (0.23 | ) | $ | — | $ | — | $ | (0.23 | ) | $ | 10.61 | ||||||||||||||||||||
2017 | 10.52 | 0.44 | 0.22 | 0.66 | (0.29 | ) | — | (0.24 | ) | (0.53 | ) | 10.65 | ||||||||||||||||||||||||||||
2016 | 10.97 | 0.50 | (0.42 | ) | 0.08 | (0.53 | ) | — | — | (0.53 | ) | 10.52 | ||||||||||||||||||||||||||||
2015 | 11.60 | 0.49 | (0.58 | ) | (0.09 | ) | (0.54 | ) | — | — | (0.54 | ) | 10.97 | |||||||||||||||||||||||||||
2014 | 11.02 | 0.53 | 0.59 | 1.12 | (0.54 | ) | — | — | (0.54 | ) | 11.60 | |||||||||||||||||||||||||||||
2013 | 10.83 | 0.52 | 0.16 | 0.68 | (0.49 | ) | — | — | (0.49 | ) | 11.02 | |||||||||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | 10.59 | 0.14 | 0.01 | 0.15 | (0.19 | ) | — | — | (0.19 | ) | 10.55 | |||||||||||||||||||||||||||||
2017 | 10.46 | 0.35 | 0.23 | 0.58 | (0.21 | ) | — | (0.24 | ) | (0.45 | ) | 10.59 | ||||||||||||||||||||||||||||
2016 | 10.90 | 0.42 | (0.41 | ) | 0.01 | (0.45 | ) | — | — | (0.45 | ) | 10.46 | ||||||||||||||||||||||||||||
2015 | 11.52 | 0.40 | (0.57 | ) | (0.17 | ) | (0.45 | ) | — | — | (0.45 | ) | 10.90 | |||||||||||||||||||||||||||
2014 | 10.94 | 0.44 | 0.60 | 1.04 | (0.46 | ) | — | — | (0.46 | ) | 11.52 | |||||||||||||||||||||||||||||
2013 | 10.76 | 0.43 | 0.16 | 0.59 | (0.41 | ) | — | — | (0.41 | ) | 10.94 | |||||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | 10.69 | 0.17 | 0.01 | 0.18 | (0.22 | ) | — | — | (0.22 | ) | 10.65 | |||||||||||||||||||||||||||||
2017 | 10.56 | 0.41 | 0.23 | 0.64 | (0.27 | ) | — | (0.24 | ) | (0.51 | ) | 10.69 | ||||||||||||||||||||||||||||
2016 | 11.01 | 0.48 | (0.42 | ) | 0.06 | (0.51 | ) | — | — | (0.51 | ) | 10.56 | ||||||||||||||||||||||||||||
2015 | 11.64 | 0.46 | (0.57 | ) | (0.11 | ) | (0.52 | ) | — | — | (0.52 | ) | 11.01 | |||||||||||||||||||||||||||
2014 | 11.05 | 0.51 | 0.60 | 1.11 | (0.52 | ) | — | — | (0.52 | ) | 11.64 | |||||||||||||||||||||||||||||
2013 | 10.88 | 0.49 | 0.15 | 0.64 | (0.47 | ) | — | — | (0.47 | ) | 11.05 | |||||||||||||||||||||||||||||
Class R6 (1/15) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | 10.67 | 0.19 | 0.01 | 0.20 | (0.24 | ) | — | — | (0.24 | ) | 10.63 | |||||||||||||||||||||||||||||
2017 | 10.52 | 0.48 | 0.23 | 0.71 | (0.32 | ) | — | (0.24 | ) | (0.56 | ) | 10.67 | ||||||||||||||||||||||||||||
2016 | 10.96 | 0.53 | (0.41 | ) | 0.12 | (0.56 | ) | — | — | (0.56 | ) | 10.52 | ||||||||||||||||||||||||||||
2015(e) | 11.22 | 0.24 | (0.25 | ) | (0.01 | ) | (0.25 | ) | — | — | (0.25 | ) | 10.96 | |||||||||||||||||||||||||||
Class I (2/00) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | 10.65 | 0.19 | — | 0.19 | (0.24 | ) | — | — | (0.24 | ) | 10.60 | |||||||||||||||||||||||||||||
2017 | 10.51 | 0.46 | 0.24 | 0.70 | (0.32 | ) | — | (0.24 | ) | (0.56 | ) | 10.65 | ||||||||||||||||||||||||||||
2016 | 10.96 | 0.53 | (0.42 | ) | 0.11 | (0.56 | ) | — | — | (0.56 | ) | 10.51 | ||||||||||||||||||||||||||||
2015 | 11.59 | 0.52 | (0.58 | ) | (0.06 | ) | (0.57 | ) | — | — | (0.57 | ) | 10.96 | |||||||||||||||||||||||||||
2014 | 11.01 | 0.56 | 0.59 | 1.15 | (0.57 | ) | — | — | (0.57 | ) | 11.59 | |||||||||||||||||||||||||||||
2013 | 10.83 | 0.55 | 0.15 | 0.70 | (0.52 | ) | — | — | (0.52 | ) | 11.01 | |||||||||||||||||||||||||||||
Class T (5/17)(f) | ||||||||||||||||||||||||||||||||||||||||
2018(h) | 10.65 | 0.18 | 0.01 | 0.19 | (0.23 | ) | — | — | (0.23 | ) | 10.61 | |||||||||||||||||||||||||||||
2017(g) | 10.67 | 0.03 | (0.01 | ) | 0.02 | — | — | (0.04 | ) | (0.04 | ) | 10.65 |
126 | NUVEEN |
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average | Ratios to Average Net Assets After Waive/Reimbursement(c) | |||||||||||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||||||
1.79 | % | $ | 128,697 | 0.93 | %* | 3.23 | %* | 0.83 | %* | 3.33 | %* | 141 | % | |||||||||||||||||||||
6.43 | 137,072 | 0.93 | 4.02 | 0.83 | 4.12 | 135 | ||||||||||||||||||||||||||||
0.94 | 187,052 | 0.92 | 4.71 | 0.83 | 4.80 | 56 | ||||||||||||||||||||||||||||
(0.80 | ) | 288,080 | 0.92 | 4.25 | 0.82 | 4.34 | 47 | |||||||||||||||||||||||||||
10.46 | 128,189 | 0.91 | 4.65 | 0.84 | 4.73 | 50 | ||||||||||||||||||||||||||||
6.25 | 72,341 | 0.90 | 4.50 | 0.84 | 4.57 | 69 | ||||||||||||||||||||||||||||
1.40 | 72,204 | 1.68 | * | 2.48 | * | 1.58 | * | 2.58 | * | 141 | ||||||||||||||||||||||||
5.63 | 76,513 | 1.68 | 3.25 | 1.58 | 3.35 | 135 | ||||||||||||||||||||||||||||
0.20 | 89,173 | 1.67 | 3.97 | 1.58 | 4.06 | 56 | ||||||||||||||||||||||||||||
(1.50 | ) | 110,660 | 1.67 | 3.51 | 1.57 | 3.60 | 47 | |||||||||||||||||||||||||||
9.59 | 48,335 | 1.66 | 3.91 | 1.59 | 3.98 | 50 | ||||||||||||||||||||||||||||
5.50 | 35,146 | 1.65 | 3.75 | 1.59 | 3.81 | 69 | ||||||||||||||||||||||||||||
1.67 | 6,751 | 1.18 | * | 2.98 | * | 1.08 | * | 3.08 | * | 141 | ||||||||||||||||||||||||
6.17 | 7,320 | 1.18 | 3.74 | 1.08 | 3.83 | 135 | ||||||||||||||||||||||||||||
0.70 | 7,647 | 1.17 | 4.44 | 1.08 | 4.54 | 56 | ||||||||||||||||||||||||||||
(1.01 | ) | 12,272 | 1.17 | 4.00 | 1.07 | 4.09 | 47 | |||||||||||||||||||||||||||
10.19 | 5,321 | 1.16 | 4.41 | 1.09 | 4.48 | 50 | ||||||||||||||||||||||||||||
5.89 | 2,926 | 1.15 | 4.27 | 1.09 | 4.34 | 69 | ||||||||||||||||||||||||||||
1.90 | 46,639 | 0.60 | * | 3.51 | * | 0.50 | * | 3.62 | * | 141 | ||||||||||||||||||||||||
6.86 | 8,995 | 0.60 | 4.35 | 0.51 | 4.45 | 135 | ||||||||||||||||||||||||||||
1.28 | 33,372 | 0.60 | 5.07 | 0.50 | 5.17 | 56 | ||||||||||||||||||||||||||||
(0.10 | ) | 20,498 | 0.61 | * | 4.70 | * | 0.50 | * | 4.81 | * | 47 | |||||||||||||||||||||||
1.90 | 557,263 | 0.68 | * | 3.48 | * | 0.58 | * | 3.58 | * | 141 | ||||||||||||||||||||||||
6.77 | 540,368 | 0.68 | 4.22 | 0.58 | 4.32 | 135 | ||||||||||||||||||||||||||||
1.19 | 475,536 | 0.67 | 4.95 | 0.58 | 5.05 | 56 | ||||||||||||||||||||||||||||
(0.54 | ) | 773,719 | 0.67 | 4.48 | 0.57 | 4.57 | 47 | |||||||||||||||||||||||||||
10.77 | 612,214 | 0.66 | 4.92 | 0.59 | 5.00 | 50 | ||||||||||||||||||||||||||||
6.42 | 517,292 | 0.65 | 4.75 | 0.59 | 4.81 | 69 | ||||||||||||||||||||||||||||
1.79 | 25 | 0.91 | * | 3.27 | * | 0.83 | * | 3.35 | * | 141 | ||||||||||||||||||||||||
0.23 | 25 | 0.92 | * | 3.40 | * | 0.83 | * | 3.50 | * | 135 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the period January 20, 2015 (commencement of operations) through June 30, 2015. |
(f) | Class T Shares are not available for public offering. |
(g) | For the period May 31, 2017 (commencement of operations) through June 30, 2017. |
(h) | For the six months ended December 31, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 127 |
Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen Core Bond Fund (“Core Bond”), Nuveen Core Plus Bond Fund (“Core Plus Bond”), Nuveen High Income Bond Fund (“High Income Bond”), Nuveen Inflation Protected Securities Fund (“Inflation Protected Securities”), Nuveen Short Term Bond Fund (“Short Term Bond”) and Nuveen Strategic Income Fund (“Strategic Income”) (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
The end of the reporting period for the Funds is December 31, 2017, and the period covered by these Notes to Financial Statements is the six months ended December 31, 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, overseas 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
Core Bond’s investment objective is to provide investors with current income to the extent consistent with preservation of capital. Core Plus Bond’s investment objective is to provide investors with high current income consistent with limited risk to capital. High Income Bond’s investment objective is to provide investors with a high level of current income. Inflation Protected Securities’ investment objective is to provide investors with total return while providing protection against inflation. Short Term Bond’s investment objective is to provide investors with current income while maintaining a high degree of principal stability. Strategic Income’s investment objective is to provide investors with total return.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the following Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
Core Bond | Core Plus Bond | Strategic Income | ||||||||||
Outstanding when-issued/delayed delivery purchase commitments | $ | 1,793,352 | $ | 31,569,831 | $ | 73,090,878 |
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments.
128 | NUVEEN |
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 daily and distributed to shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the transfer agent.
Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of the Funds, with the exception of Short Term Bond, of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge. Class A Share purchases of Short Term Bond of $250,000 or more are sold at NAV without an up-front sales charge. Class A Share purchases may be subject to a contingent deferred sales charge (“CDSC”) equal to 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. Class T Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Sub-transfer agent fees and similar 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 Fund pays no compensation directly to those of its trustees 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.
NUVEEN | 129 |
Notes to Financial Statements (Unaudited) (continued)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the 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). |
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Like most fixed-income securities, the senior and subordinated loans in which the Fund invests are not listed on an organized exchange. The secondary market of such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior and subordinated loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan. These securities are generally classified as Level 2.
Prices of forward foreign currency contracts and swap contracts are also provided by a pricing service approved by the Board using the same methods as described above and are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Index options are valued at the 4:00 p.m. Eastern Time (ET) close price of the NYSE. The value of exchange-traded options are based on the mean of the closing bid and ask prices. Index and exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter (“OTC”) market are valued using an evaluated mean price and are generally classified as Level 2.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the New York Stock Exchange is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds’ NAV is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Board. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to
materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S.
130 | NUVEEN |
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:
Core Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 62,028,620 | $ | — | $ | 62,028,620 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 61,818,922 | — | 61,818,922 | ||||||||||||
U.S. Government and Agency Obligations | — | 11,309,357 | — | 11,309,357 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 705,250 | — | 705,250 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 1,008,625 | — | — | 1,008,625 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 1,981,954 | — | — | 1,981,954 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 82,881 | — | — | 82,881 | ||||||||||||
Total | $ | 3,073,460 | $ | 135,862,149 | $ | — | $ | 138,935,609 | ||||||||
Core Plus Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Asset-Backed and Mortgage-Backed Securities | $ | — | $ | 165,772,135 | $ | — | $ | 165,772,135 | ||||||||
Corporate Bonds | — | 147,047,334 | — | 147,047,334 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 20,694,193 | — | 20,694,193 | ||||||||||||
U.S. Government and Agency Obligations | — | 20,003,455 | — | 20,003,455 | ||||||||||||
Contingent Capital Securities | — | 6,696,784 | — | 6,696,784 | ||||||||||||
Sovereign Debt | — | 5,919,889 | — | 5,919,889 | ||||||||||||
Municipal Bonds | — | 926,745 | — | 926,745 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 2,110,300 | — | — | 2,110,300 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 33,679,639 | — | — | 33,679,639 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Contracts** | — | (55,933 | ) | — | (55,933 | ) | ||||||||||
Credit Default Swaps** | — | (25,864 | ) | — | (25,864 | ) | ||||||||||
Futures Contracts** | 9,582 | — | — | 9,582 | ||||||||||||
Total | $ | 35,799,521 | $ | 366,978,738 | $ | — | $ | 402,778,259 | ||||||||
High Income Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 283,801,831 | $ | — | **** | $ | 283,801,831 | |||||||
$1,000 Par (or similar) Institutional Preferred | — | 8,988,000 | — | 8,988,000 | ||||||||||||
Contingent Capital Securities | — | 9,762,612 | — | 9,762,612 | ||||||||||||
Variable Rate Senior Loan Interests | — | 9,229,829 | — | 9,229,829 | ||||||||||||
Common Stocks | 6,598,468 | 4,662 | *** | 65,242 | *** | 6,668,372 | ||||||||||
Investment Companies | 6,609,718 | — | — | 6,609,718 | ||||||||||||
$25 Par (or similar) Retail Preferred | 6,280,051 | — | — | 6,280,051 | ||||||||||||
Convertible Preferred Securities | 2,108,602 | — | — | 2,108,602 | ||||||||||||
Warrants | — | 34 | *** | — | **** | 34 | ||||||||||
Convertible Bonds | — | 19 | — | 19 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 32,559,058 | — | — | 32,559,058 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 11,637,062 | — | — | 11,637,062 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Contracts** | — | (34,133 | ) | — | (34,133 | ) | ||||||||||
Futures Contracts** | (14,670 | ) | — | — | (14,670 | ) | ||||||||||
Total | $ | 65,778,289 | $ | 311,752,854 | $ | 65,242 | $ | 377,596,385 |
* | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
*** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and/or Level 3. |
**** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 3. Value equals zero as of the end of the reporting period. |
NUVEEN | 131 |
Notes to Financial Statements (Unaudited) (continued)
Inflation Protected Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
U.S. Government and Agency Obligations | $ | — | $ | 537,191,444 | $ | — | $ | 537,191,444 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 51,266,599 | — | 51,266,599 | ||||||||||||
Corporate Bonds | — | 15,598,943 | — | 15,598,943 | ||||||||||||
Sovereign Debt | — | 2,900,700 | — | 2,900,700 | ||||||||||||
Municipal Bonds | — | 1,850,871 | — | 1,850,871 | ||||||||||||
Convertible Preferred Securities | 263,800 | — | — | 263,800 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 1,642,688 | — | — | 1,642,688 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 8,108,769 | — | — | 8,108,769 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 80,994 | — | — | 80,994 | ||||||||||||
Total | $ | 10,096,251 | $ | 608,808,557 | $ | — | $ | 618,904,808 | ||||||||
Short Term Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Asset-Backed and Mortgage-Backed Securities | $ | — | $ | 245,895,074 | $ | — | $ | 245,895,074 | ||||||||
Corporate Bonds | — | 216,834,978 | — | 216,834,978 | ||||||||||||
U.S. Government and Agency Obligations | — | 48,068,184 | — | 48,068,184 | ||||||||||||
Municipal Bonds | — | 1,190,000 | — | 1,190,000 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 7,882,205 | — | — | 7,882,205 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 875,738 | — | — | 875,738 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | (155,973 | ) | — | — | (155,973 | ) | ||||||||||
Total | $ | 8,601,970 | $ | 511,988,236 | $ | — | $ | 520,590,206 | ||||||||
Strategic Income | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 407,607,876 | $ | — | $ | 407,607,876 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 231,886,824 | — | 231,886,824 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 54,361,934 | — | 54,361,934 | ||||||||||||
Contingent Capital Securities | — | 39,884,901 | — | 39,884,901 | ||||||||||||
Sovereign Debt | — | 32,015,078 | — | 32,015,078 | ||||||||||||
U.S. Government and Agency Obligations | — | 22,688,219 | — | 22,688,219 | ||||||||||||
Variable Rate Senior Loan Interests | — | 5,446,652 | — | 5,446,652 | ||||||||||||
$25 Par (or similar) Retail Preferred | — | 2,255,700 | *** | — | 2,255,700 | |||||||||||
Municipal Bonds | — | 1,915,273 | — | 1,915,273 | ||||||||||||
Common Stocks | 95,558 | — | 5,993 | *** | 101,551 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 18,877,725 | — | — | 18,877,725 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 78,670,593 | — | — | 78,670,593 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Contracts** | — | 7,531 | — | 7,531 | ||||||||||||
Credit Default Swaps** | — | (275,879 | ) | — | (275,879 | ) | ||||||||||
Futures Contracts** | 472,267 | — | — | 472,267 | ||||||||||||
Total | $ | 98,116,143 | $ | 797,794,109 | $ | 5,993 | $ | 895,916,245 |
* | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
*** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and/or Level 3. |
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.
132 | NUVEEN |
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
To the extent that the Funds may invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) foreign currency, (ii) investments, (iii) investments in derivatives and (iv) other assets and liabilities are recognized as a component of “Net realized gain (loss) from investments and foreign currency” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Inflation-Indexed Bonds
Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recognized as a component of “Interest income” on the Statement of Operations, even though investors do not receive their principal until maturity.
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Funds retain the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
NUVEEN | 133 |
Notes to Financial Statements (Unaudited) (continued)
Each Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the 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 (“U.S. Bank”), serves as its securities lending agent. Income earned from the securities lending program is paid to the Funds. Income from securities lending is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the Funds, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund | Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
Core Bond | ||||||||||||||
Corporate Bonds | $ | 367,313 | $ | (367,313 | ) | $ | — | |||||||
U.S. Government and Agency Obligations | 615,317 | (615,317 | ) | — | ||||||||||
Total | $ | 982,630 | $ | (982,630 | ) | $ | — | |||||||
Core Plus Bond | ||||||||||||||
Corporate Bonds | $ | 2,029,859 | $ | (2,029,859 | ) | $ | — | |||||||
High Income Bond | ||||||||||||||
Corporate Bonds | $ | 29,569,474 | $ | (29,569,474 | ) | $ | — | |||||||
$1,000 Par (or Similar) Institutional Preferred | 1,497,750 | (1,497,750 | ) | — | ||||||||||
Common Stocks | 192 | (192 | ) | — | ||||||||||
Investment Companies | 198 | (198 | ) | — | ||||||||||
$25 Par (or Similar) Retail Preferred | 3,703 | (3,703 | ) | — | ||||||||||
Total | $ | 31,071,317 | $ | (31,071,317 | ) | $ | — | |||||||
Inflation Procted Securities | ||||||||||||||
U.S. Government and Agency Obligations | $ | 400,206 | $ | (400,206 | ) | $ | — | |||||||
Corporate Bonds | 1,195,169 | (1,195,169 | ) | — | ||||||||||
Total | $ | 1,595,375 | (1,595,375 | ) | $ | — | ||||||||
Short Term Bond | ||||||||||||||
Corporate Bonds | $ | 4,943,946 | $ | (4,943,946 | ) | $ | — | |||||||
U.S. Government and Agency Obligations | 2,712,023 | (2,712,023 | ) | — | ||||||||||
Total | $ | 7,655,969 | (7,655,969 | ) | $ | — | ||||||||
Strategic Income | ||||||||||||||
Corporate Bonds | $ | 13,902,822 | $ | (13,902,822 | ) | $ | — | |||||||
$1,000 Par (or Similar) Institutional Preferred | 4,089,836 | (4,089,836 | ) | — | ||||||||||
Contingent Capital Securities | 182,000 | (182,000 | ) | — | ||||||||||
Total | $ | 18,174,658 | $ | (18,174,658 | ) | $ | — |
* | 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. |
134 | NUVEEN |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Forward Foreign Currency Contracts
Each Fund is authorized to enter into forward foreign currency contracts (“forward contracts”) under two circumstances: (i) when a Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency to “lock in” the U.S. exchange rate of the transaction, with such period being a short-dated contract covering the period between transaction date and settlement date; or (ii) when the Sub-Adviser believes that the currency of a particular foreign country may experience a substantial movement against the U.S. dollar or against another foreign currency.
A forward contract is an agreement between two parties to purchase or sell a specified quantity of a currency at or before a specified date in the future at a specified price. Forward contracts are typically traded in the OTC markets and all details of the contract are negotiated between the counterparties to the agreement. Accordingly, the forward contracts are valued by reference to the contracts traded in the OTC markets. The contractual obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying currency, establishing an opposite position in the contract and recognizing the profit or loss on both positions simultaneously on the delivery date or, in some instances, paying a cash settlement before the designated date of delivery.
Forward contracts are valued daily at the forward rate. The net amount recorded on these transactions for each counterparty is recognized as a component of “Unrealized appreciation and/or depreciation on forward foreign currency contracts” on the Statement of Assets and Liabilities. The change in value of the forward contracts during the reporting period is recognized as a component of “Change in net unrealized appreciation (depreciation) of forward foreign currency contracts” on the Statement of Operations. When the contract is closed or offset with the same counterparty, a Fund recognizes the difference between the value of the contract at the time it was entered and the value at the time it was closed or offset as a component of “Net realized gain (loss) from forward foreign currency contracts” on the Statement of Operations.
Forward contracts will generally not be entered into for terms greater than three months, but may have maturities of up to six months or more. The use of forward contracts does not eliminate fluctuations in the underlying prices of a Fund’s investment securities; however, it does establish a rate of exchange that can be achieved in the future. The use of forward contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reflected on the Statement of Assets and Liabilities. Forward contracts are subject to counterparty risk if the counterparty fails to perform as specified in the contract due to financial impairment or other reason.
During the current fiscal period, Core Plus Bond, High Income Bond and Strategic Income invested in forward foreign currency contracts to manage foreign currency exposure. For example, the Fund may reduce unwanted currency exposure from its bond portfolio, or it may take long forward positions in select currencies in an attempt to benefit from the potential price appreciation.
The average notional amount of forward foreign currency contracts outstanding during the current fiscal period was as follows:
Core Plus Bond | High Income Bond | Strategic Income | ||||||||||
Average notional amount of forward foreign currency contracts outstanding* | $ | 9,766,645 | $ | 3,961,734 | $ | 51,818,530 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of forward foreign currency contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Plus Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | — | $ | — | Unrealized depreciation on forward foreign currency contracts | $ | (55,933 | ) |
NUVEEN | 135 |
Notes to Financial Statements (Unaudited) (continued)
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
High Income Bond | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency contracts | $ | 25,788 | Unrealized depreciation on forward foreign currency contracts | $ | (59,921 | ) | ||||||
Strategic Income | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency contracts | $ | 223,498 | Unrealized depreciation on forward foreign currency contracts | $ | (215,967 | ) |
The following table presents the forward foreign currency contracts subject to netting agreements and the collateral delivered related to those forward foreign currency contracts as of the end of the reporting period.
Fund | Counterparty | Gross Unrealized Appreciation on Forward Foreign Currency Contracts* | Gross Unrealized (Depreciation) on Forward Foreign Currency Contracts* | Net Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts | Collateral Pledged to (from) Counterparty | Net Exposure | ||||||||||||||||
Core Plus Bond | ||||||||||||||||||||||
Bank of America, N.A. | $ | — | $ | (55,933 | ) | $ | (55,933 | ) | $ | — | $ | (55,933 | ) | |||||||||
High Income Bond | ||||||||||||||||||||||
Goldman Sachs Bank USA | $ | 25,788 | (59,921 | ) | $ | (34,133 | ) | $ | — | $ | (34,133 | ) | ||||||||||
Strategic Income | ||||||||||||||||||||||
Bank of America, N.A. | $ | 223,498 | $ | (187,235 | ) | $ | 36,263 | $ | — | $ | 36,263 | |||||||||||
Citibank, National Association | — | (15,509 | ) | (15,509 | ) | — | (15,509 | ) | ||||||||||||||
Goldman Sachs Bank USA | — | (13,223 | ) | (13,223 | ) | — | (13,223 | ) | ||||||||||||||
Total | $ | 223,498 | $ | (215,967 | ) | $ | (217,531 | ) | $ | — | $ | 7,531 |
* | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on forward foreign currency contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Forward Foreign Currency Contracts | Change in Net Unrealized Currency Contracts | ||||||||
Core Plus Bond | Foreign currency exchange rate | Forward contracts | $ | (154,629 | ) | $ | 138,858 | |||||
High Income Bond | Foreign currency exchange rate | Forward contracts | (237,092 | ) | 147,942 | |||||||
Strategic Income | Foreign currency exchange rate | Forward contracts | (908,836 | ) | 951,542 |
Futures Contracts
Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Cash collateral at brokers for investments in future contracts” on the Statement of Assets and Liabilities. Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If a Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to appreciation. Conversely, if a Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
136 | NUVEEN |
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, each Fund used U.S. Treasury futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure. Strategic Income also used Eurodollar futures; selecting foreign bond futures to actively manage exposure to those markets.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Average notional amount of futures contracts outstanding* | $ | 32,913,116 | $ | 39,514,937 | $ | 2,390,563 | $ | 64,199,379 | $ | 101,540,676 | $ | 250,604,596 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 46,994 | Payable for variation margin on futures contracts* | $ | 54,858 | |||||||
Receivable for variation margin on futures contracts* | (6,689 | ) | Payable for variation margin on futures contracts* | (12,282 | ) | |||||||||
Total | $ | 40,305 | $ | 42,576 | ||||||||||
Core Plus Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 53,225 | — | $ | — | |||||||
Receivable for variation margin on futures contracts* | (41,531 | ) | Payable for variation margin on futures contract* | (2,112 | ) | |||||||||
Total | $ | 11,694 | $ | (2,112) | ||||||||||
High Income Bond | ||||||||||||||
Interest Rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | (14,670 | ) | — | $ | — | ||||||
Inflation Protected Securities | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 55,462 | Payable for variation margin on futures contracts* | $ | 101,309 | |||||||
Receivable for variation margin on futures contracts* | (45,885 | ) | Payable for variation margin on futures contracts* | (29,892 | ) | |||||||||
Total | $ | 9,577 | $ | 71,417 | ||||||||||
Short Term Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | (224,603 | ) | Payable for variation margin on futures contracts* | $ | 68,630 | ||||||
Strategic Income | ||||||||||||||
Interest Rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 237,814 | Payable for variation margin on futures contracts* | $ | 523,799 | |||||||
Receivable for variation margin on futures contracts* | (289,346 | ) | — | — | ||||||||||
Total | $ | (51,532 | ) | $ | 523,799 |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported on the Fund’s Portfolio of Investments and not the asset and/or liability derivatives location as described in the table above. |
NUVEEN | 137 |
Notes to Financial Statements (Unaudited) (continued)
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | ||||||||
Core Bond | Interest rate | Futures contracts | $ | 268,199 | $ | (108,789 | ) | |||||
Core Plus Bond | Interest rate | Futures contracts | 437,724 | (202,961 | ) | |||||||
High Income Bond | Interest rate | Futures contracts | (4,816 | ) | (11,807 | ) | ||||||
Inflation Protected Securities | Interest rate | Futures contracts | 309,720 | (168,421 | ) | |||||||
Short Term Bond | Interest rate | Futures contracts | (264,608 | ) | (186,216 | ) | ||||||
Strategic Income | Interest rate | Futures contracts | 1,911,065 | (545,487 | ) |
Credit Default Swap Contracts
A Fund may enter into a credit default swap contract to seek to maintain a total return on a particular investment or portion of its portfolio, or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap contracts involve one party making a stream of payments to another party in exchange for the right to receive a specified return if/when there is a credit event by a third party. Generally, a credit event means bankruptcy, failure to pay, or restructuring. The specific credit events applicable for each credit default swap are stated in the terms of the particular swap agreement. When a Fund has bought (sold) protection in a credit default swap upon occurrence of a specific credit event with respect to the underlying referenced entity, the Fund will either (i) deliver (receive) that security, or an equivalent amount of cash, from the counterparty in exchange for receipt (payment) of the notional amount to the counterparty, or (ii) receive (pay) a net settlement amount of the credit default swap contract less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The difference between the value of the security received (delivered) and the notional amount delivered (received) is recorded as a realized gain or loss. Payments paid (received) at the beginning of the measurement period are recognized as a component of “Credit default swaps premiums paid and/or received” on the Statement of Assets and Liabilities, when applicable.
Credit default swap contracts are valued daily. Changes in the value of a credit default swap during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” and realized gains and losses are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations.
For OTC swaps not cleared through a clearing house (“OTC Uncleared”), the daily change in the market value of the swap contract, along with any daily interest fees accrued, are recognized as components of “Unrealized appreciation or depreciation on credit default swaps” on the Statement of Assets and Liabilities.
Upon the execution of an OTC swap cleared through a clearing house (“OTC Cleared”), a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open swap contracts, if any, is recognized as “Cash collateral at brokers for investments in swaps” on the Statement of Assets and Liabilities. Investments in OTC Cleared swaps obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the swap. If a Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if a Fund has unrealized depreciation, the clearing broker will debit a Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin for OTC Cleared swaps is recognized as a receivable and/or payable for “Variation margin on swap contracts” on the Statement of Assets and Liabilities. Upon the execution of an OTC Uncleared swap, neither the Fund nor the counterparty is required to deposit initial margin as the trades are recorded bilaterally between both parties to the swap contract, and the terms of the variation margin are subject to a predetermined threshold negotiated by the Fund and the counterparty. Variation margin for OTC Uncleared swaps is recognized as a component of “Unrealized appreciation or depreciation on credit default swaps” as described in the preceding paragraph. The maximum potential amount of future payments the Fund could incur as a buyer or seller of protection in a credit default swap contract is limited to the notional amount of the contract. The maximum potential amount would be offset by the recovery value, if any, of the respective referenced entity.
During the current fiscal period, Core Plus Bond entered into credit default swaps to take on credit risk and earn a commensurate credit spread. Strategic Income used high yield credit default swaps as a way to take on credit risk and earn credit spread.
The average notional amount of credit default swap contracts outstanding during the current fiscal period was as follows:
Core Plus Bond | Strategic Income | |||||||
Average notional amount of credit default swap contracts outstanding* | $ | 5,536,667 | $ | 57,666,667 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
138 | NUVEEN |
The following table presents the fair value of all swap contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Core Plus Bond | ||||||||||||||
Credit | Swaps (OTC Cleared) | Receivable for variation margin on swap contracts* | $ | (25,864 | ) | — | $ | — | ||||||
Strategic Income | ||||||||||||||
Credit | Swaps (OTC Cleared) | — | $ | — | Payable for variation margin on swap contracts* | $ | (275,879 | ) |
* | Value represents unrealized appreciation (depreciation) of swaps as reported in the Fund’s Portfolio of Investments and not the asset and/or liability amount as described in the table above. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Swaps | Change in Net Unrealized Appreciation (Depreciation) of Swaps | ||||||||
Core Plus Bond | Credit | Swaps | $ | (193,771 | ) | $ | (22,738 | ) | ||||
Strategic Income | Credit | Swaps | (2,558,311 | ) | 264,549 |
Options Transactions
The purchase of options involves the risk of loss of all or a part of the cash paid for the options (the premium). The market risk associated with purchasing options is limited to the premium paid. The counterparty credit risk of purchasing options, however, needs to take into account the current value of the option, as this is the performance expected from the counterparty. When a Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as a component of “Options purchased, at value” on the Statement of Asset and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a component of “Options written, at value” on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased and/or written during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of options purchased and/or written” on the Statement of Operations. When an option is exercised or expires or a Fund enters into a closing purchase transaction, the difference between the net premium received, and any amount paid at expiration or on executing a closing purchase transaction, including commission, is recognized as a component of “Net realized gain (loss) from options purchased and/or written” on the Statement of Operations. The Fund, as writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
During the current fiscal period, Core Plus Bond and Strategic Income purchased a small amount of call options on futures as part of its overwrite strategy.
The average notional amount of outstanding options purchased during the current fiscal period, was as follows:
Core Plus Bond | Strategic Income | |||||||
Average notional amount of outstanding call options purchased* | $ | 267,750 | $ | 1,164,500 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. The Fund did not have any outstanding call options purchased at the end of the current fiscal period. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on options purchased on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Options Purchased | Change in Net Unrealized Appreciation (Depreciation) of Options Purchased | ||||||||
Core Plus Bond | Interest Rate | Options | $ | (16,404 | ) | $ | 13,541 | |||||
Strategic Income | Interest Rate | Options | (71,345 | ) | 58,501 |
NUVEEN | 139 |
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.
High Income Bond and Strategic Income have issued Class T Shares, however, these shares are not available for public offering.
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Core Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 166,270 | $ | 1,623,544 | 348,602 | $ | 3,417,164 | ||||||||||
Class C | 55,663 | 542,379 | 60,753 | 599,236 | ||||||||||||
Class R6 | — | — | 43,750 | 420,000 | ||||||||||||
Class I | 433,475 | 4,217,591 | 1,378,169 | 13,502,662 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 14,617 | 142,936 | 31,200 | 306,317 | ||||||||||||
Class C | 1,190 | 11,599 | 2,394 | 23,407 | ||||||||||||
Class R6 | 78,009 | 760,845 | 155,004 | 1,516,669 | ||||||||||||
Class I | 22,443 | 218,547 | 67,626 | 662,944 | ||||||||||||
771,667 | 7,517,441 | 2,087,498 | 20,448,399 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (144,524 | ) | (1,412,958 | ) | (540,191 | ) | (5,290,739 | ) | ||||||||
Class C | (38,041 | ) | (371,284 | ) | (62,735 | ) | (609,443 | ) | ||||||||
Class R6 | (10,204 | ) | (100,000 | ) | (44,334 | ) | (425,000 | ) | ||||||||
Class I | (1,206,203 | ) | (11,743,111 | ) | (5,006,267 | ) | (49,084,941 | ) | ||||||||
(1,398,972 | ) | (13,627,353 | ) | (5,653,527 | ) | (55,410,123 | ) | |||||||||
Net increase (decrease) | (627,305 | ) | $ | (6,109,912 | ) | (3,566,029 | ) | $ | (34,961,724 | ) |
140 | NUVEEN |
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Core Plus Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 338,533 | $ | 3,744,937 | 611,527 | $ | 6,726,114 | ||||||||||
Class C | 70,227 | 772,868 | 171,637 | 1,886,831 | ||||||||||||
Class R3 | 17,345 | 193,206 | 615,172 | 6,844,174 | ||||||||||||
Class R6 | 53,858 | 596,387 | 90,528 | 1,011,000 | ||||||||||||
Class I | 3,493,142 | 38,558,492 | 4,377,518 | 47,937,579 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 78,834 | 872,195 | 190,198 | 2,095,816 | ||||||||||||
Class C | 7,096 | 78,139 | 16,235 | 178,033 | ||||||||||||
Class R3 | 1,705 | 18,965 | 27,701 | 307,667 | ||||||||||||
Class R6 | 36,007 | 398,314 | 84,172 | 926,719 | ||||||||||||
Class I | 208,868 | 2,306,500 | 456,635 | 5,020,233 | ||||||||||||
4,305,615 | 47,540,003 | 6,641,323 | 72,934,166 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (500,007 | ) | (5,530,179 | ) | (1,217,937 | ) | (13,357,088 | ) | ||||||||
Class C | (123,865 | ) | (1,363,764 | ) | (317,074 | ) | (3,464,656 | ) | ||||||||
Class R3 | (15,744 | ) | (174,932 | ) | (1,879,685 | ) | (20,475,673 | ) | ||||||||
Class R6 | (41,593 | ) | (460,962 | ) | (280,316 | ) | (3,090,000 | ) | ||||||||
Class I | (2,338,614 | ) | (25,812,184 | ) | (6,073,915 | ) | (66,683,145 | ) | ||||||||
(3,019,823 | ) | (33,342,021 | ) | (9,768,927 | ) | (107,070,562 | ) | |||||||||
Net increase (decrease) | 1,285,792 | $ | 14,197,982 | (3,127,604 | ) | $ | (34,136,396) | |||||||||
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
High Income Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 10,656,248 | $ | 83,238,383 | 32,470,739 | $ | 247,533,207 | ||||||||||
Class C | 661,548 | 5,159,621 | 1,736,460 | 13,348,306 | ||||||||||||
Class R3 | 6,200 | 49,438 | 45,050 | 357,086 | ||||||||||||
Class I | 7,121,951 | 55,789,346 | 34,781,812 | 265,895,263 | ||||||||||||
Class T | — | — | 3,161 | 25,000 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 535,460 | 4,187,619 | 1,340,981 | 10,363,650 | ||||||||||||
Class C | 171,236 | 1,337,004 | 328,045 | 2,530,015 | ||||||||||||
Class R3 | 2,253 | 17,994 | 4,906 | 38,622 | ||||||||||||
Class I | 606,462 | 4,757,365 | 1,340,352 | 10,386,721 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
19,761,358 | 154,536,770 | 72,051,506 | 550,477,870 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (11,691,467 | ) | (91,093,050 | ) | (32,124,546 | ) | (247,025,407 | ) | ||||||||
Class C | (775,668 | ) | (6,043,012 | ) | (1,721,578 | ) | (13,270,661 | ) | ||||||||
Class R3 | (27,423 | ) | (218,512 | ) | (68,232 | ) | (534,057 | ) | ||||||||
Class I | (11,905,182 | ) | (93,046,384 | ) | (39,271,277 | ) | (300,816,743 | ) | ||||||||
Class T | — | — | — | — | ||||||||||||
(24,399,740 | ) | (190,400,958 | ) | (73,185,633 | ) | (561,646,868 | ) | |||||||||
Net increase (decrease) | (4,638,382 | ) | $ | (35,864,188 | ) | (1,134,127 | ) | $ | (11,168,998 | ) |
NUVEEN | 141 |
Notes to Financial Statements (Unaudited) (continued)
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Inflation Protected Securities | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,522,316 | $ | 16,885,077 | 6,040,554 | $ | 67,321,139 | ||||||||||
Class C | 152,726 | 1,663,660 | 412,282 | 4,524,060 | ||||||||||||
Class R3 | 75,853 | 832,864 | 603,269 | 6,671,387 | ||||||||||||
Class R6 | 2,215,983 | 25,239,936 | 1,955,128 | 21,949,504 | ||||||||||||
Class I | 4,629,553 | 51,950,024 | 20,142,393 | 226,841,726 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 53,859 | 595,606 | 59,660 | 657,631 | ||||||||||||
Class C | 7,554 | 82,088 | 3,967 | 42,609 | ||||||||||||
Class R3 | 2,430 | 26,630 | 2,149 | 23,519 | ||||||||||||
Class R6 | 53,667 | 603,898 | 21,770 | 243,084 | ||||||||||||
Class I | 173,914 | 1,945,847 | 182,980 | 2,043,868 | ||||||||||||
8,887,855 | 99,825,630 | 29,424,152 | 330,318,527 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,643,548 | ) | (18,226,074 | ) | (4,841,254 | ) | (53,604,295 | ) | ||||||||
Class C | (227,423 | ) | (2,479,843 | ) | (613,289 | ) | (6,691,782 | ) | ||||||||
Class R3 | (108,301 | ) | (1,188,520 | ) | (1,259,181 | ) | (13,919,416 | ) | ||||||||
Class R6 | (211,633 | ) | (2,390,371 | ) | (192,582 | ) | (2,168,933 | ) | ||||||||
Class I | (5,610,991 | ) | (62,915,306 | ) | (14,549,158 | ) | (163,023,741 | ) | ||||||||
(7,801,896 | ) | (87,200,114 | ) | (21,455,464 | ) | (239,408,167 | ) | |||||||||
Net increase (decrease) | 1,085,959 | $ | 12,625,516 | 7,968,688 | $ | 90,910,360 | ||||||||||
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Short Term Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,769,143 | $ | 27,262,698 | 5,353,264 | $ | 52,756,422 | ||||||||||
Class C | 290,307 | 2,869,527 | 1,329,379 | 13,158,495 | ||||||||||||
Class R3 | 2,769 | 27,330 | 23,856 | 235,874 | ||||||||||||
Class R6 | 31,085 | 306,762 | 5,437,604 | 53,642,505 | ||||||||||||
Class I | 6,558,020 | 64,643,333 | 13,570,545 | 133,885,155 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 67,069 | 660,431 | 140,246 | 1,383,223 | ||||||||||||
Class C | 7,348 | 72,678 | 18,098 | 179,200 | ||||||||||||
Class R3 | 15 | 155 | 60 | 589 | ||||||||||||
Class R6 | 67,140 | 663,123 | 90,268 | 892,379 | ||||||||||||
Class I | 107,765 | 1,062,154 | 220,618 | 2,177,787 | ||||||||||||
9,900,661 | 97,568,191 | 26,183,938 | 258,311,629 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,281,542 | ) | (32,311,916 | ) | (5,799,396 | ) | (57,151,517 | ) | ||||||||
Class C | (549,520 | ) | (5,435,643 | ) | (1,863,891 | ) | (18,443,917 | ) | ||||||||
Class R3 | (3,825 | ) | (37,821 | ) | (8,633 | ) | (85,228 | ) | ||||||||
Class R6 | (276,945 | ) | (2,728,422 | ) | (2,587,822 | ) | (25,570,087 | ) | ||||||||
Class I | (8,816,572 | ) | (86,881,368 | ) | (20,733,177 | ) | (204,630,204 | ) | ||||||||
(12,928,404 | ) | (127,395,170 | ) | (30,992,919 | ) | (305,880,953 | ) | |||||||||
Net increase (decrease) | (3,027,743 | ) | $ | (29,826,979 | ) | (4,808,981 | ) | $ | (47,569,324) |
142 | NUVEEN |
Six Months Ended 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Strategic Income | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,944,586 | $ | 20,711,323 | 3,757,905 | $ | 39,980,395 | ||||||||||
Class C | 620,036 | 6,571,375 | 1,087,361 | 11,507,310 | ||||||||||||
Class R3 | 89,605 | 958,288 | 201,763 | 2,155,820 | ||||||||||||
Class R6 | 4,134,077 | 44,381,686 | 16,930 | 180,760 | ||||||||||||
Class I | 7,865,341 | 83,758,329 | 18,017,028 | 191,046,600 | ||||||||||||
Class T | — | — | 2,343 | 25,000 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 240,197 | 2,559,157 | 719,575 | 7,667,521 | ||||||||||||
Class C | 107,407 | 1,138,524 | 276,325 | 2,927,905 | ||||||||||||
Class R3 | 7,103 | 75,960 | 17,683 | 189,082 | ||||||||||||
Class R6 | 56,301 | 600,015 | 124,648 | 1,328,825 | ||||||||||||
Class I | 578,041 | 6,155,973 | 1,071,000 | 11,401,338 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
15,642,694 | 166,910,630 | 25,292,561 | 268,410,556 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,920,790 | ) | (31,122,164 | ) | (9,384,268 | ) | (99,319,492 | ) | ||||||||
Class C | (1,106,597 | ) | (11,729,265 | ) | (2,664,036 | ) | (28,194,589 | ) | ||||||||
Class R3 | (147,282 | ) | (1,573,737 | ) | (258,707 | ) | (2,763,808 | ) | ||||||||
Class R6 | (646,523 | ) | (6,899,832 | ) | (2,469,686 | ) | (26,308,349 | ) | ||||||||
Class I | (6,644,465 | ) | (70,743,841 | ) | (13,558,767 | ) | (144,036,221 | ) | ||||||||
Class T | — | — | — | — | ||||||||||||
(11,465,657 | ) | (122,068,839 | ) | (28,335,464 | ) | (300,622,459 | ) | |||||||||
Net increase (decrease) | 4,177,037 | $ | 44,841,791 | (3,042,903 | ) | $ | (32,211,903 | ) |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions) during the current fiscal period were as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Purchases: | ||||||||||||||||||||||||
Investment securities | $ | 16,540,011 | $ | 104,957,626 | $ | 202,456,930 | $ | 23,494,265 | $ | 184,845,612 | $ | 271,496,726 | ||||||||||||
U.S. Government and agency obligations | 17,911,954 | 123,522,234 | — | 63,613,321 | 15,853,906 | 371,267,920 | ||||||||||||||||||
Sales and maturities: | ||||||||||||||||||||||||
Investment securities | 13,524,555 | 113,794,771 | 236,274,246 | 11,563,832 | 153,308,307 | 225,145,548 | ||||||||||||||||||
U.S. Government and agency obligations | 15,586,222 | 93,744,183 | — | 66,646,257 | 17,045,000 | 366,530,136 |
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.
NUVEEN | 143 |
Notes to Financial Statements (Unaudited) (continued)
The tables below present the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of December 31, 2017.
For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Tax cost of investments | $ | 135,729,053 | $ | 394,083,901 | $ | 394,587,886 | $ | 613,664,587 | $ | 522,117,039 | $ | 881,055,773 | ||||||||||||
Gross unrealized: | ||||||||||||||||||||||||
Appreciation | $ | 3,464,264 | $ | 10,214,528 | $ | 10,991,742 | $ | 9,506,586 | $ | 1,020,452 | $ | 21,014,866 | ||||||||||||
Depreciation | (340,589 | ) | (1,447,955 | ) | (27,934,440 | ) | (4,347,359 | ) | (2,391,312 | ) | (6,358,313 | ) | ||||||||||||
Net unrealized appreciation (depreciation) of investments | $ | 3,123,675 | $ | 8,766,573 | $ | (16,942,698 | ) | $ | 5,159,227 | $ | (1,370,860 | ) | $ | 14,656,553 |
Core Plus Bond | High Income Bond | Strategic Income | ||||||||||
Tax cost of forwards | $ | (55,933 | ) | $ | (34,133 | ) | $ | 7,531 | ||||
Net unrealized appreciation (depreciation) of forwards | — | — | — |
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Tax cost of futures | $ | 82,881 | $ | 9,582 | $ | (14,670 | ) | $ | 80,994 | $ | (155,973 | ) | $ | 472,267 | ||||||||||
Net unrealized appreciation (depreciation) of futures | — | — | — | — | — | — |
Core Plus Bond | Strategic Income | |||||||
Tax cost of swaps | $ | (288,107 | ) | $ | (3,379,553 | ) | ||
Net unrealized appreciation (depreciation) of swaps | — | — |
Permanent differences, primarily due to expiration of capital loss carryforwards, federal taxes paid, foreign currency transactions, Sec. 305(c) adjustments, complex security character adjustments, investments in partnerships, treatment of notional principal contracts and amortization of mark-to-market adjustments on Sec. 311(e) assets, resulted in reclassifications among the Funds’ components of net assets as of June 30, 2017, the Funds’ last tax year end, as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Capital paid-in | $ | (12 | ) | $ | (12 | ) | $ | (3,210 | ) | $ | (12 | ) | $ | (1,188,211 | ) | $ | (12 | ) | ||||||
Undistributed (Over-distribution of) net investment income | — | (2,926,714 | ) | (66,117 | ) | — | 54 | (13,826,110 | ) | |||||||||||||||
Accumulated net realized gain (loss) | 12 | 2,926,726 | 69,327 | 12 | 1,188,157 | 13,826,122 |
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2017, the Funds’ last tax year end, were as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Undistributed net ordinary income1 | $ | — | $ | — | $ | 3,327,425 | $ | 6,388,416 | $ | — | $ | — | ||||||||||||
Undistributed net long-term capital gains | — | — | — | — | — | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared during the period June 1, 2017 through June 30, 2017 and paid on July 3, 2017. Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended June 30, 2017, was designated for purposes of the dividends paid deduction as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Distributions from net ordinary income2 | $ | 3,957,392 | $ | 9,981,541 | $ | 30,659,613 | $ | 6,987,083 | $ | 9,517,470 | $ | 22,549,140 | ||||||||||||
Distributions from net long-term capital gains | — | — | — | — | — | — | ||||||||||||||||||
Return of capital | 283,435 | 5,002,040 | — | — | 579,228 | 17,330,639 |
2 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
144 | NUVEEN |
As of June 30, 2017, the Funds’ last tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Expiration: | ||||||||||||||||||||||||
June 30, 2018 | $ | — | $ | — | $ | — | $ | — | $ | 4,103,631 | $ | 35,110,018 | ||||||||||||
Not subject to expiration | 2,917,952 | 6,778,004 | 93,516,903 | 3,811,179 | 8,377,887 | 54,722,250 | ||||||||||||||||||
Total | $ | 2,917,952 | $ | 6,778,004 | $ | 93,516,903 | $ | 3,811,179 | $ | 12,481,518 | $ | 89,832,268 |
During the Funds’ last tax year ended June 30, 2017, the following Funds utilized capital loss carryforwards as follows:
Core Plus Bond | Short Term | |||||||
Utilized capital loss carryforwards | $ | 3,300,381 | $ | 779,967 |
As of June 30, 2017, the Funds’ last tax year end, the following Fund’s capital loss carryforwards expired as follows:
Short Term Bond | ||||
Expired capital loss carryforwards | $ | 1,188,199 |
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Funds have elected to defer losses as follows:
Core Plus Bond | Strategic Income | |||||||
Post-October capital losses3 | $ | — | $ | — | ||||
Late-year ordinary losses4 | 1,709,124 | 7,226,379 |
3 | Capital losses incurred from November 1, 2016 through June 30, 2017, the Funds’ last tax year end. |
4 | Ordinary losses incurred from January 1, 2017 through June 30, 2017 and/or specified losses incurred from November 1, 2016 through June 30, 2017. |
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.
For the period July 1, 2017 through July 31, 2017, the annual fund-level fee, payable monthly, for each Fund was calculated according to the following schedule:
Average Daily Net Assets | Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||||||||||
For the first $125 million | 0.2700 | % | 0.2800 | % | 0.4000 | % | 0.2500 | % | 0.2200 | % | 0.3600 | % | ||||||||||||
For the next $125 million | 0.2575 | 0.2675 | 0.3875 | 0.2375 | 0.2075 | 0.3475 | ||||||||||||||||||
For the next $250 million | 0.2450 | 0.2550 | 0.3750 | 0.2250 | 0.1950 | 0.3350 | ||||||||||||||||||
For the next $500 million | 0.2325 | 0.2425 | 0.3625 | 0.2125 | 0.1825 | 0.3225 | ||||||||||||||||||
For the next $1 billion | 0.2200 | 0.2300 | 0.3500 | 0.2000 | 0.1700 | 0.3100 | ||||||||||||||||||
For net assets over $2 billion | 0.1950 | 0.2050 | 0.3250 | 0.1750 | 0.1450 | 0.2850 |
NUVEEN | 145 |
Notes to Financial Statements (Unaudited) (continued)
Effective August 1, 2017, the annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Net Assets | Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||||||||||
For the first $125 million | 0.2700 | % | 0.2800 | % | 0.4000 | % | 0.2500 | % | 0.2200 | % | 0.3600 | % | ||||||||||||
For the next $125 million | 0.2575 | 0.2675 | 0.3875 | 0.2375 | 0.2075 | 0.3475 | ||||||||||||||||||
For the next $250 million | 0.2450 | 0.2550 | 0.3750 | 0.2250 | 0.1950 | 0.3350 | ||||||||||||||||||
For the next $500 million | 0.2325 | 0.2425 | 0.3625 | 0.2125 | 0.1825 | 0.3225 | ||||||||||||||||||
For the next $1 billion | 0.2200 | 0.2300 | 0.3500 | 0.2000 | 0.1700 | 0.3100 | ||||||||||||||||||
For the next $3 billion | 0.1950 | 0.2050 | 0.3250 | 0.1750 | 0.1450 | 0.2850 | ||||||||||||||||||
For the next $5 billion | 0.1700 | 0.1800 | 0.3000 | 0.1500 | 0.1200 | 0.2600 | ||||||||||||||||||
For net assets over $10 billion | 0.1575 | 0.1675 | 0.2875 | 0.1375 | 0.1075 | 0.2475 |
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 Eligible Asset Breakpoint Level* | Effective Complex-Level Fee 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 open-end and closed-end 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 December 31, 2017, the complex-level fee for each Fund was as follows: |
Fund | Complex-Level Fee | |||
Core Bond | 0.2000 | % | ||
Core Plus Bond | 0.2000 | |||
High Income Bond | 0.2000 | |||
Inflation Protected Securities | 0.1712 | |||
Short Term Bond | 0.2000 | |||
Strategic Income | 0.1894 |
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 occurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table. 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 in effect thereafter may be terminated or modified only with the approval of the Board.
Fund | Expense Cap | Expense Cap Expiration Date | ||||
Core Bond | 0.53 | % | July 31, 2019 | |||
Core Plus Bond | 0.52 | July 31, 2019 | ||||
High Income Bond | 0.75 | July 31, 2019 | ||||
Inflation Protected Securities | 0.56 | July 31, 2019 | ||||
Short Term Bond | 0.47 | July 31, 2019 | ||||
Strategic Income | 0.59 | July 31, 2019 |
146 | NUVEEN |
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:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Sales charges collected | $ | 14,893 | $ | 28,617 | $ | 291,066 | $ | 9,159 | $ | 161,984 | $ | 81,084 | ||||||||||||
Paid to financial intermediaries | 12,648 | 25,388 | 261,195 | 8,168 | 158,497 | 73,601 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Commission advances | $ | 6,364 | $ | 9,848 | $ | 72,246 | $ | 12,612 | $ | 128,961 | $ | 73,817 |
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:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
12b-1 fees retained | $ | 1,586 | $ | 17,258 | $ | 44,912 | $ | 17,273 | $ | 7,728 | $ | 44,123 |
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the current fiscal period, as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
CDSC retained | $ | 7 | $ | 402 | $ | 4,666 | $ | 1,000 | $ | 8,246 | $ | 5,991 |
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.
The Unsecured Credit Line was not renewed after its scheduled termination date of July 27, 2017.
Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $3 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 2018 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.
NUVEEN | 147 |
Notes to Financial Statements (Unaudited) (continued)
During the current fiscal period, High Income Bond utilized this facility. The Fund’s average daily balance outstanding and average annual interest rate during the utilization period was $10,316,667 and 2.24%, respectively. The Fund’s maximum outstanding daily balance during the utilization period was $17,100,000. Borrowings outstanding as of the end of the reporting period are recognized as “Borrowings” on the Statement of Assets and Liabilities. None of the other Funds utilized this facility during the current fiscal period.
9. New Accounting Pronouncements
FASB Accounting Standards Update (“ASU”) 2017-08 (“ASU 2017-08”) Premium Amortization on Purchased Callable Debt Securities
The FASB has issued ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08, if any.
10. Subsequent Events
Change in CDSC Schedule for Short-Term Bond
Effective March 27, 2018, shareholders purchasing $250,000 or more for Short-Term Bond of Class A Shares at NAV without an up-front sales charge will be assessed a CDSC of 0.75% on any shares redeemed within twelve months of purchase, unless the redemption is eligible for a CDSC reduction or waiver as specified in the Fund’s statement of additional information.
148 | 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 DST Asset Manager P.O. Box 8530 Boston, MA 02266-8530 |
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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 | 149 |
Used in this Report
Asset-Backed Securities (ABS): Securities whose value and income payments are derived from and collateralized by a specific pool of underlying assets. The pool of assets typically is a group of small and/or illiquid assets that may be difficult to sell individually. The underlying pools of asset-backed securities often include payments from credit cards, auto loans or mortgage loans.
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Basis Point: One one-hundredth of one percentage point, or 0.01%. For example, 25 basis points equals 0.25%.
Beta: A measure of the variability of the change in the share price for a fund in relation to a change in the value of the fund’s market benchmark. Securities with betas higher than 1.0 have been, and are expected to be, more volatile than the benchmark; securities with betas lower than 1.0 have been, and are expected to be, less volatile than the benchmark.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage-backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Bloomberg Barclays High Yield 2% Issuer Capped Index: An issuer-constrained version of the U.S. Corporate High-Yield Index that covers the U.S. dollar denominated, non-investment grade, fixed-rate, taxable corporate bond market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Bloomberg Barclays U.S. TIPS Index: An unmanaged index that includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Bloomberg Barclays 1-3 Year Government/Credit Bond Index: An unmanaged index that includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of between 1 and 3 years and are publicly issued. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Commercial Mortgage-Backed Securities (CMBS): Commercial mortgage-backed securities are backed by cash flows of a mortgage or pool of mortgages on commercial real estate. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. CMBS are typically characterized by the following: i) loans on multi-family housing, non-residential property, ii) payments based on the amortization schedule of 25-30 years with a balloon payment due usually after 10 years, and iii) restrictions on prepayments.
Contingent Capital Securities (CoCos): CoCos are debt or capital securities of primarily non-U.S. issuers with loss absorption contingency mechanisms built into the terms of the security, for example a mandatory conversion into common stock of the issuer, or a principal write-down, which if triggered would likely cause the CoCo investment to lose value. Loss absorption mechanisms would become effective upon the occurrence of a specified contingency event, or at the discretion of a regulatory body. Specified contingency events, as identified in the CoCo’s governing documents,
150 | NUVEEN |
usually reference a decline in the issuer’s capital below a specified threshold level, and/or certain regulatory events. A loss absorption contingency event for CoCos would likely be the result of, or related to, the deterioration of the issuer’s financial condition and/or its status as a going concern. In such a case, with respect to CoCos that provide for conversion into common stock upon the occurrence of the contingency event, the market price of the issuer’s common stock received by the Acquiring Fund will have likely declined, perhaps substantially, and may continue to decline after conversion. CoCos rated below investment grade should be considered high yield securities, or “junk,” but often are issued by entities whose more senior securities are rated investment grade. CoCos are a relatively new type of security; and there is a risk that CoCo security issuers may suffer the sort of future financial distress that could materially increase the likelihood (or the market’s perception of the likelihood) that an automatic write-down or conversion event on those issuers’ CoCos will occur. Additionally, the trading behavior of a given issuer’s CoCo may be strongly impacted by the trading behavior of other issuers’ CoCos, such that negative information from an unrelated CoCo security may cause a decline in value of one or more CoCos held by the Fund. Accordingly, the trading behavior of CoCos may not follow the trading behavior of other types of debt and preferred securities. Despite these concerns, the prospective reward vs. risk characteristics of at least certain CoCos may be very attractive relative to other fixed-income alternatives.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Lipper Core Bond Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Core Bond Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Core Bond Plus Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Core Bond Plus Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper High Current Yield Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper High Current Yield Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Inflation-Protected Bond Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Inflation-Protected Bond Funds Classification. The Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Multi-Sector Income Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Multi-Sector Income Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Lipper Short Investment Grade Debt Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Short Investment Grade Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Mortgage-Backed Securities (MBS): Mortgage-backed securities (MBS) are bonds backed by pools of mortgages, usually with similar characteristics, and which return principal and interest in each payment. MBS are composed of residential mortgages (RMBS) or commercial mortgages (CMBS). RMBS are further divided into agency RMBS and non-agency RMBS, depending on the issuer.
NUVEEN | 151 |
Glossary of Terms Used in this Report (Unaudited) (continued)
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Residential Mortgage-Backed Securities (RMBS): Residential mortgage-backed securities are securities the payments on which depend primarily on the cash flow from residential mortgage loans made to borrowers that are secured by residential real estate. RMBS consist of agency and non-agency RMBS. Agency RMBS have agency guarantees that assure investors that they will receive timely payment of interest and principal, regardless of delinquency or default rates on the underlying loans. Agency RMBS include securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and other federal agencies, or issues guaranteed by them. Non-agency RMBS do not have agency guarantees. Non-agency RMBS have credit enhancement built into the structure to shield investors from borrower delinquencies. The spectrum of non-agency residential mortgage loans includes traditional jumbo loans (prime), alternative-A loans (Alt-A), and home equity loans (sub-prime).
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.
152 | NUVEEN |
Notes
NUVEEN | 153 |
Notes
154 | NUVEEN |
Notes
NUVEEN | 155 |
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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 manager 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 may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information
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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-FINC-1217D 427251-INV-B-02/19
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Mutual Funds |
Nuveen Income Funds |
| Semi-Annual Report December 31, 2017 |
Share Class / Ticker Symbol | ||||||||||||||
Fund Name | Class A | Class C | Class R3 | Class I | ||||||||||
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Nuveen Intermediate Government Bond Fund | FIGAX | FYGCX | FYGRX | FYGYX |
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NUVEEN | 3 |
to Shareholders
Dear Shareholders,
Financial markets ended 2017 on a high note. Concurrent growth across the world’s major economies, strong corporate profits, low inflation and accommodative central banks provided an optimal environment for rising asset prices with remarkably low volatility. Political risks, which were expected to be a wildcard in 2017, did not materialize. The Trump administration achieved one of its major policy goals with the passage of the Tax cuts and Jobs Act, the European Union (EU) member governments elected EU-friendly leadership, Brexit negotiations moved forward and China’s 19th Party Congress concluded with no major surprises in its economic policy objectives.
Conditions have turned more volatile in 2018, but the positive fundamentals underpinning the markets’ rise over the past year remain intact. In early February, fears of rising inflation, which could prompt more aggressive action by the Federal Reserve, trigged a widespread sell-off across U.S. and global equity markets. Yet, global economies are still expanding and corporate earnings look healthy.
We do believe volatility will feature more prominently in 2018. Interest rates continue to rise and inflation pressures are mounting and investors are uncertain about how markets will react amid tighter financial conditions. After the relative calm of the past few years, it’s anticipated that price fluctuations will begin trending toward a more historically normal range. But we also note that signs foreshadowing recession are lacking at this point.
Maintaining perspective can be difficult with daily headlines focused predominantly on short-term news. Nuveen believes this can be an opportune time to check in with your financial advisor. Strong market appreciation such as that in 2017 may create an imbalance in a diversified portfolio. Your advisor can help you reexamine your investment goals and risk tolerance, and realign your portfolio’s investment mix appropriately. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
February 23, 2018
4 | NUVEEN |
Comments
Nuveen Intermediate Government Bond Fund
This Fund features portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. Wan-Chong Kung, CFA, has managed the Fund since 2002, while Chris J. Neuharth and Jason J. O’Brien, CFA, have been on the Fund’s management team since 2009.
Effective January 22, 2018, subsequent to the end of the reporting period, the Nuveen Intermediate Government Bond Fund was liquidated.
Here they discuss the key investment strategies and the Funds’ performance for the six-month reporting period ended December 31, 2017.
What strategies were used to manage the Fund during the six-month reporting period and how did these strategies influence performance?
The Fund continued to employ the same fundamental investment strategies and tactics used previously. The Fund’s management team uses a highly collaborative, research-driven approach that we believe offers the best opportunity to achieve consistent, superior long-term performance on a risk-adjusted basis across the full range of market environments. During the reporting period, the Fund was generally positioned for an environment of continued moderate economic growth.
The Fund’s Class A Shares at NAV performed in line with the Bloomberg Barclays Intermediate Government Bond Index and underperformed the Lipper Intermediate U.S. Government Funds Classification Average for the six-month reporting period.
Despite episodes of geopolitical turmoil and policy uncertainty during the reporting period, risk appetites in the financial markets remained supported by economic activity and financial conditions. U.S. Treasury rates were broadly range-bound for most of the reporting period, before moving higher into year-end, responding to developments surrounding Federal Reserve (Fed) policy and U.S. tax reform. In moves well communicated with markets in advance, the Fed began its program of balance sheet reduction in the fall. It also raised interest rates by 0.25% at its mid-December meeting due to strength in the job market and economy, while signaling it expects continued increases in 2018. However, most other central banks remained accommodative throughout the reporting period as they’ve done all year, which along with very low inflation, helped suppress global bond yields. Congress also eventually passed a large tax bill in December, providing substantial cuts to corporate taxes and a near-term fiscal stimulus, while eliminating a recent driver of uncertainty.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
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.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
NUVEEN | 5 |
Portfolio Managers’ Comments (continued)
The U.S. Treasury yield curve flattened dramatically during the reporting period. At the long end of the yield curve, rates moved slightly lower for 30-year securities, the only segment where rates were down. At the short end, the two-year Treasury yield reached its highest level of this cycle, increasing by 50 basis points over the six-month reporting period as a whole. Five-year Treasury rates were 28 basis points higher. Catalysts for the curve flattening included stronger economic data, the Fed’s December rate hike, continued benign inflation and a Treasury announcement regarding increased issuance of shorter maturity bonds. The return of the Fund’s benchmark, the Bloomberg Barclays Intermediate Government Bond Index, was in negative territory at -0.06% due to rising short-term rates.
In the securitized sectors, residential mortgage-backed securities (MBS) performed well supported by range-bound rates, relatively low levels of volatility, continued strong fundamentals in the housing market and strong investor demand. In October 2017, the Fed began its quantitative tightening by reducing its monthly reinvestments in MBS by $4 billion per month. However, the runoff was easily absorbed by banks, real estate investment trusts (REITs) and foreign buyers because overall MBS supply declined due to seasonal factors in the housing market. Both the commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) segments outperformed in the first two months of the six-month reporting period, but took a step back in September 2017 on the heels of the hurricanes, North Korea tensions and the Toys-R-Us bankruptcy filing. Later in the reporting period, however, the ABS sector recovered as buyers quickly returned to the sector after low levels of volatility and the need for yield brought increased demand for these securities. The CMBS sector also outperformed Treasuries because investors continued to view the sector as a relatively safe source of yield, taking comfort in improved underwriting in the segment.
The Fund benefited from its sector weights, including overweight positions in the securitized sectors of the market and a corresponding underweight to U.S. Treasuries. More specifically, the Fund benefited from overweights to MBS, ABS and CMBS. Demand remained strong for high quality, liquid paper and spreads tightened versus Treasuries for all three segments during the reporting period.
The significant flattening of the Treasury yield curve benefited the Fund’s performance relative to its benchmark and peers during the reporting period. We had the Fund positioned to benefit from that scenario by overweighting Treasury securities in the 10-year portion of the yield curve, while underweighting securities with maturities of five years and under. As noted, the yield curve experienced significant flattening as a result of various factors. Therefore, our yield curve positioning was another contributor to the Fund’s results, mostly in the second half of the six-month reporting period.
In addition, we tactically traded the Fund’s duration throughout the reporting period, which adjusted its sensitivity to interest rate changes, while remaining defensive versus the benchmark. In aggregate, these duration moves had minimal impact on the Fund’s performance.
In addition, we used U.S. Treasury note and bond futures as part of an overall portfolio construction strategy to manage the Fund’s duration and yield curve exposure. These derivative positions had a negligible impact on performance during the reporting period.
6 | NUVEEN |
and Dividend Information
Risk Considerations
Nuveen Intermediate Government Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Dividend Information
The Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit the Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund’s net asset value. The Fund will, over time, pay all its net investment income as dividends to shareholders.
As of December 31, 2017, the Fund had a positive UNII balance, based upon our best estimate, for tax purposes and a negative UNII balance for financial reporting purposes.
All monthly dividends paid by the Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of the Fund’s dividends for the reporting period are presented in this report’s Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for the Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
NUVEEN | 7 |
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8 | NUVEEN |
and Expense Ratios
The Fund Performance and Expense Ratios for the 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 | 9 |
Fund Performance and Expense Ratios (continued)
Nuveen Intermediate Government Bond Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of December 31, 2017
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (0.05)% | 0.89% | 0.39% | 2.28% | ||||||||||||
Class A Shares at maximum Offering Price | (3.06)% | (2.16)% | (0.23)% | 1.97% | ||||||||||||
Bloomberg Barclays Intermediate Government Bond Index | (0.06)% | 1.14% | 0.92% | 2.70% | ||||||||||||
Lipper Intermediate U.S. Government Funds Classification Average | 0.10% | 1.39% | 0.93% | 2.75% | ||||||||||||
Class I Shares | 0.09% | 1.06% | 0.65% | 2.49% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | (0.54)% | 0.01% | (0.37)% | 0.87% | ||||||||||||
Class R3 Shares | (0.18)% | 0.50% | 0.14% | 1.36% |
Since inception returns for Class C and Class R3 Shares are from 10/28/09. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 3.00% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC) 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 | 1.04% | 1.79% | 1.28% | 0.78% | ||||||||||||
Net Expense Ratios | 0.79% | 1.54% | 1.04% | 0.54% |
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 0.54% of the average daily net assets of any class of Fund shares. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Directors of the Fund.
10 | NUVEEN |
Yields as of December 31, 2017
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. Refer to the Notes to Financial Statements, Note 7 – Management Fees and Other Transactions with Affiliates for further details on the investment adviser’s most recent agreement with the Fund to waive fees and/or reimburse expenses, where applicable. Dividend Yield may differ from the SEC 30-Day Yield because the fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
Nuveen Intermediate Government Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 3.95% | 3.31% | 3.80% | 4.36% | ||||||||||||
SEC 30-Day Yield-Subsidized | 1.68% | 1.00% | 1.49% | 1.97% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 1.21% | 0.51% | 1.00% | 1.51% |
1 | The SEC Yield for Class A Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
NUVEEN | 11 |
Summaries as of December 31, 2017
This data relates to the securities held in the 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.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Nuveen Intermediate Government Bond Fund
Fund Allocation
(% of net assets)
U.S. Government and Agency Obligations | 81.1% | |||
Asset-Backed and Mortgage-Backed Securities | 15.4% | |||
Municipal Bonds | 3.4% | |||
Investments Purchased with Collateral From Securities Lending | 2.6% | |||
Money Market Funds | 0.5% | |||
Other Assets Less Liabilities | (3.0)% | |||
Net Assets | 100% |
Portfolio Credit Quality
(% of total long-term investments)
AAA | 7.7% | |||
AA | 3.3% | |||
BBB | 0.5% | |||
U.S. Treasury/Agency | 88.5% | |||
Total | 100% |
12 | NUVEEN |
Examples
As a shareholder of the Fund, 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 Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended December 31, 2017.
The beginning of the period is July 1, 2017.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the 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 Intermediate Government Bond Fund
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 999.50 | $ | 994.60 | $ | 998.20 | $ | 1,000.90 | ||||||||
Expenses Incurred During the Period | $ | 3.98 | $ | 7.74 | $ | 5.24 | $ | 2.72 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,021.22 | $ | 1,017.44 | $ | 1,019.96 | $ | 1,022.48 | ||||||||
Expenses Incurred During the Period | $ | 4.02 | $ | 7.83 | $ | 5.30 | $ | 2.75 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.79%, 1.54%, 1.04% and 0.54% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
NUVEEN | 13 |
Nuveen Intermediate Government Bond Fund
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.9% | ||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 81.1% |
| |||||||||||||||||||
$ | 790 | Fannie Mae Notes | 1.500% | 11/30/20 | Aaa | $ | 778,332 | |||||||||||||
1,180 | Federal Farm Credit Bank Discount Notes | 1.550% | 9/27/19 | Aaa | 1,171,833 | |||||||||||||||
560 | Federal Farm Credit Bank Discount Notes | 1.550% | 4/13/20 | Aaa | 554,406 | |||||||||||||||
455 | Federal Farm Credit Bank Discount Notes | 1.750% | 10/26/20 | Aaa | 450,679 | |||||||||||||||
360 | Federal Farm Credit Banks, Consolidated Systemwide Notes | 1.750% | 4/01/21 | Aaa | 355,779 | |||||||||||||||
1,080 | Federal Home Loan Bank Bonds | 4.125% | 3/13/20 | Aaa | 1,129,709 | |||||||||||||||
1,060 | Federal Home Loan Bank Bonds | 1.750% | 6/12/20 | Aaa | 1,052,857 | |||||||||||||||
515 | Federal Home Loan Bank Bonds | 1.375% | 9/28/20 | Aaa | 505,743 | |||||||||||||||
300 | Federal Home Loan Bank Bonds | 1.125% | 7/14/21 | Aaa | 289,999 | |||||||||||||||
775 | Federal Home Loan Bank Bonds | 1.875% | 12/09/22 | Aaa | 763,240 | |||||||||||||||
955 | Federal Home Loan Bank Bonds | 2.875% | 6/14/24 | Aaa | 981,534 | |||||||||||||||
2,260 | Federal Home Loan Bank Bonds | 2.875% | 9/13/24 | Aaa | 2,316,954 | |||||||||||||||
775 | Federal National Mortgage Association | 2.125% | 4/24/26 | Aaa | 747,660 | |||||||||||||||
250 | Financing Corporation | 9.400% | 2/08/18 | N/R | 252,171 | |||||||||||||||
750 | Freddie Mac Notes, (3) | 1.500% | 1/17/20 | Aaa | 742,805 | |||||||||||||||
270 | Freddie Mac Reference Notes | 5.000% | 12/14/18 | Aa2 | 278,068 | |||||||||||||||
560 | Freddie Mac Reference Notes | 1.375% | 4/20/20 | Aaa | 552,002 | |||||||||||||||
1,145 | U.S. Treasury Notes, Stripped Interest Payments | 0.000% | 2/15/22 | N/R | 1,046,895 | |||||||||||||||
1,510 | U.S. Treasury Notes | 1.750% | 5/15/23 | Aaa | 1,472,529 | |||||||||||||||
1,135 | U.S. Treasury Notes | 2.750% | 11/15/23 | Aaa | 1,165,489 | |||||||||||||||
1,000 | U.S. Treasury Notes | 2.250% | 1/31/24 | Aaa | 997,636 | |||||||||||||||
445 | U.S. Treasury Notes | 2.125% | 9/30/24 | Aaa | 439,298 | |||||||||||||||
3,505 | U.S. Treasury Notes | 2.000% | 2/15/25 | Aaa | 3,425,416 | |||||||||||||||
1,540 | U.S. Treasury Notes | 2.125% | 5/15/25 | Aaa | 1,516,092 | |||||||||||||||
730 | U.S. Treasury Notes | 2.000% | 8/15/25 | Aaa | 711,477 | |||||||||||||||
$ | 23,905 | Total U.S. Government and Agency Obligations (cost $23,617,515) |
| 23,698,603 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 15.4% | ||||||||||||||||||||
$ | 464 | 321 Henderson Receivables LLC., Series 2010-1A, 144A | 5.560% | 7/15/59 | Aaa | $ | 494,710 | |||||||||||||
427 | Entergy New Orleans Store Recovery Funding LLC, Series 2015-1 | 2.670% | 6/01/27 | AAA | 426,314 | |||||||||||||||
2 | Fannie Mae Mortgage Pool FN 695765 | 5.500% | 4/01/18 | N/R | 1,896 | |||||||||||||||
5 | Fannie Mae Mortgage Pool FN 254720 | 4.500% | 5/01/18 | N/R | 4,600 | |||||||||||||||
23 | Fannie Mae Mortgage Pool FN 725793 | 5.500% | 9/01/19 | N/R | 23,561 | |||||||||||||||
33 | Fannie Mae Mortgage Pool FN 254179 | 6.000% | 1/01/22 | N/R | 37,405 |
14 | NUVEEN |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||
$ | 39 | Fannie Mae Mortgage Pool FN 254344 | 6.500% | 6/01/22 | N/R | $ | 42,879 | |||||||||||||
54 | Fannie Mae Mortgage Pool FN 596680 | 7.000% | 9/01/31 | N/R | 58,623 | |||||||||||||||
74 | Fannie Mae Mortgage Pool FN 254169 | 6.500% | 12/01/31 | N/R | 82,455 | |||||||||||||||
143 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | N/R | 157,798 | |||||||||||||||
133 | Fannie Mae Mortgage Pool FN 596712 | 6.500% | 6/01/32 | N/R | 148,332 | |||||||||||||||
19 | Fannie Mae Mortgage Pool FN 656269 | 6.000% | 8/01/32 | N/R | 20,040 | |||||||||||||||
44 | Fannie Mae Mortgage Pool FN 887017 | 6.500% | 8/01/36 | N/R | 50,675 | |||||||||||||||
68 | Fannie Mae Mortgage Pool FN 928519 | 7.000% | 6/01/37 | N/R | 73,659 | |||||||||||||||
230 | Fannie Mae Mortgage Pool FN AE4876 | 3.500% | 10/01/40 | N/R | 237,821 | |||||||||||||||
39 | Fannie Mae Mortgage Pool FN AE0981 | 3.500% | 3/01/41 | N/R | 40,688 | |||||||||||||||
225 | Fannie Mae REMIC Pass-Through Certificates | 7.500% | 2/25/42 | Aaa | 250,131 | |||||||||||||||
31 | Freddie Mac Mortgage Pool, Various G00876 | 6.500% | 1/01/28 | N/R | 34,140 | |||||||||||||||
18 | Freddie Mac Mortgage Pool, Various C35768 | 7.500% | 1/01/30 | N/R | 19,672 | |||||||||||||||
83 | Freddie Mac Mortgage Pool, Various G01244 | 6.500% | 3/01/31 | N/R | 93,971 | |||||||||||||||
300 | Freddie Mac Mortgage Trust 2011-K702, 144A | 4.793% | 4/25/44 | Aa3 | 300,076 | |||||||||||||||
154 | Freddie Mac Mortgage Trust 2013-KF02, 144A (1-Month LIBOR reference rate + 3.000% spread), (4) | 4.564% | 12/25/45 | Baa1 | 154,198 | |||||||||||||||
14 | Government National Mortgage Association Pool 347332 | 7.500% | 12/15/22 | N/R | 14,479 | |||||||||||||||
86 | Government National Mortgage Association Pool 780825 | 6.500% | 7/15/28 | N/R | 97,852 | |||||||||||||||
34 | Government National Mortgage Association Pool 3120 | 6.500% | 8/20/31 | N/R | 39,229 | |||||||||||||||
58 | Government National Mortgage Association Pool 570134 | 7.500% | 12/15/31 | N/R | 59,615 | |||||||||||||||
518 | Government National Mortgage Association Pool 633605 | 6.000% | 9/15/34 | N/R | 594,337 | |||||||||||||||
212 | Government National Mortgage Association Pool 4946 | 4.500% | 2/20/41 | N/R | 224,437 | |||||||||||||||
365 | New Residential Advance Receivable Trust, Series 2017-T1, 144A | 3.214% | 2/15/51 | AAA | 365,315 | |||||||||||||||
350 | OMART Receivables Trust, Series 2016-T1, 144A | 2.521% | 8/17/48 | AAA | 349,930 | |||||||||||||||
$ | 4,245 | Total Asset-Backed and Mortgage-Backed Securities (cost $4,285,523) |
| 4,498,838 | ||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provision (5) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 3.4% | ||||||||||||||||||||
New York – 0.9% | ||||||||||||||||||||
$ | 265 | New York City, New York, General Obligation Bonds, Fiscal 2017 Series B-2, 3.100%, 12/01/25 | No Opt. Call | AA | $ | 269,503 | ||||||||||||||
Ohio – 1.8% | ||||||||||||||||||||
345 | Columbus, Ohio, General Obligation Bonds, Various Purpose, Taxable Series 2014C, 3.000%, 2/15/19 | No Opt. Call | AAA | 348,819 | ||||||||||||||||
175 | Ohio State, General Obligation Bonds, Third Frontier Research and Development, Taxable Series 2017A, 2.850%, 11/01/27 | No Opt. Call | AA+ | 174,249 | ||||||||||||||||
520 | Total Ohio | 523,068 |
NUVEEN | 15 |
Nuveen Intermediate Government Bond Fund (continued)
Portfolio of Investments | December 31, 2017 (Unaudited) |
Principal Amount (000) | Description (1) | Optional Call Provision (5) | Ratings (2) | Value | ||||||||||||||||
Texas – 0.7% | ||||||||||||||||||||
$ | 200 | Houston, Texas, General Obligation Bonds, Public Improvement, Build America Bond Series 2010B, 4.811%, 3/01/22 | 3/20 at 100.00 | AA | $ | 209,936 | ||||||||||||||
$ | 985 | Total Municipal Bonds (cost $1,008,482) | 1,002,507 | |||||||||||||||||
Total Long-Term Investments (cost $28,911,520) |
| 29,199,948 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 2.6% |
| |||||||||||||||||||
Money Market Funds – 2.6% | ||||||||||||||||||||
764,063 | First American Government Obligations Fund, Class X, (7) | 1.196% (6) | $ | 764,063 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $764,063) |
| 764,063 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||||||||||||||
Money Market Funds – 0.5% | ||||||||||||||||||||
133,173 | First American Treasury Obligations Fund, Class Z | 1.181% (6) | $ | 133,173 | ||||||||||||||||
Total Short-Term Investments (cost $133,173) |
| 133,173 | ||||||||||||||||||
Total Investments (cost $29,808,756) – 103.0% |
| 30,097,184 | ||||||||||||||||||
Other Assets Less Liabilities – (3.0)% (8) | (879,174 | ) | ||||||||||||||||||
Net Assets – 100% | $ | 29,218,010 |
Investments in Derivatives
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (9 | ) | 3/18 | $ | (1,045,221 | ) | $ | (1,045,477 | ) | $ | (256 | ) | $ | (256 | ) | ||||||||||||
U.S. Treasury 10-Year Note | Short | (14 | ) | 3/18 | (1,729,519 | ) | (1,736,656 | ) | (7,137 | ) | (2,844 | ) | ||||||||||||||||
U.S. Treasury Long Bond | Short | (13 | ) | 3/18 | (452,789 | ) | (459,000 | ) | (6,211 | ) | (844 | ) | ||||||||||||||||
$ | (3,227,529 | ) | $ | (3,241,133 | ) | $ | (13,604 | ) | $ | (3,944 | ) |
16 | NUVEEN |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $742,805. |
(4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(5) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
(6) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
(7) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(8) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
LIBOR | London Inter-Bank Offered Rate |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
See accompanying notes to financial statements.
NUVEEN | 17 |
Assets and Liabilities | December 31, 2017 (Unaudited) |
Assets | ||||
Long-term investments, at value (cost $28,911,520) | $ | 29,199,948 | ||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 764,063 | |||
Short-term investments, at value (cost approximates value) | 133,173 | |||
Cash | 2,625 | |||
Cash collateral at brokers for investments in futures contracts(1) | 23,200 | |||
Receivable for: | ||||
Due from broker | 47 | |||
Reimbursement from Adviser | 531 | |||
Interest | 150,606 | |||
Shares sold | 954 | |||
Other assets | 32,398 | |||
Total assets | $ | 30,307,545 | ||
Liabilities | ||||
Payable for: | ||||
Collateral from securities lending program | 764,063 | |||
Dividends | 32,118 | |||
Shares redeemed | 241,093 | |||
Variation margin on future contracts | 3,944 | |||
Accrued expenses: | ||||
Directors fees | 388 | |||
12b-1 distribution and service fees | 2,242 | |||
Other | 45,687 | |||
Total liabilities | 1,089,535 | |||
Net assets | $ | 29,218,010 |
(1) | Cash pledged to collateralize the net payment obligations for investments in futures contracts. |
See accompanying notes to financial statements.
18 | NUVEEN |
Class A Shares | ||||
Net assets | $ | 5,896,375 | ||
Shares outstanding | 686,715 | |||
Net asset value (“NAV”) per share | $ | 8.59 | ||
Offering price per share (NAV per share plus maximum sales charge of 3.00% of offering price) | $ | 8.86 | ||
Class C Shares | ||||
Net assets | $ | 839,626 | ||
Shares outstanding | 97,602 | |||
NAV and offering price per share | $ | 8.60 | ||
Class R3 Shares | ||||
Net assets | $ | 82,103 | ||
Shares outstanding | 9,559 | |||
NAV and offering price per share | $ | 8.59 | ||
Class I Shares | ||||
Net assets | $ | 22,399,906 | ||
Shares outstanding | 2,607,794 | |||
NAV and offering price per share | $ | 8.59 | ||
Net assets consist of: | ||||
Capital paid-in | $ | 30,226,365 | ||
Undistributed (Over-distribution of) net investment income | (25,441 | ) | ||
Accumulated net realized gain (loss) | (1,257,738 | ) | ||
Net unrealized appreciation (depreciation) | 274,824 | |||
Net assets | $ | 29,218,010 | ||
Authorized shares – per class | 2 billion | |||
Par value per share | 0.0001 |
See accompanying notes to financial statements.
NUVEEN | 19 |
Operations | Six Months Ended December 31, 2017 (Unaudited) |
Investment Income | ||||
Interest income | $ | 558,020 | ||
Securities lending income | 985 | |||
Total investment income | 559,005 | |||
Expenses | ||||
Management fees | 107,145 | |||
12b-1 service fees – Class A Shares | 9,700 | |||
12b-1 distribution and service fees – Class C Shares | 5,502 | |||
12b-1 distribution and service fees – Class R3 Shares | 206 | |||
Shareholder servicing agent fees | 20,309 | |||
Custodian fees | 18,632 | |||
Directors fees | 881 | |||
Professional fees | 23,761 | |||
Shareholder reporting expenses | 7,347 | |||
Federal and state registration fees | 32,699 | |||
Other | 2,594 | |||
Total expenses before fee waiver/expense reimbursement | 228,776 | |||
Fee waiver/expense reimbursement | (84,800 | ) | ||
Net expenses | 143,976 | |||
Net investment income (loss) | 415,029 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: | ||||
Investments | 24,636 | |||
Futures contracts | 32,199 | |||
Net change in unrealized appreciation (depreciation) of: | ||||
Investments | (390,360 | ) | ||
Futures contracts | (36,427 | ) | ||
Net realized and unrealized gain (loss) | (369,952 | ) | ||
Net increase (decrease) in net assets from operations | $ | 45,077 |
See accompanying notes to financial statements.
20 | NUVEEN |
Changes in Net Assets | (Unaudited) |
Six Months Ended 12/31/17 | Year Ended | |||||||
Operations | ||||||||
Net investment income (loss) | $ | 415,029 | $ | 1,022,544 | ||||
Net realized gain (loss) from: | ||||||||
Investments | 24,636 | (214,806 | ) | |||||
Futures contracts | 32,199 | (38,881 | ) | |||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments | (390,360 | ) | (2,552,387 | ) | ||||
Futures contracts | (36,427 | ) | 54,540 | |||||
Net increase (decrease) in net assets from operations | 45,077 | (1,728,990 | ) | |||||
Distributions to Shareholders | ||||||||
From net investment income: | ||||||||
Class A Shares | (63,475 | ) | (150,158 | ) | ||||
Class C Shares | (4,877 | ) | (6,809 | ) | ||||
Class R3 Shares | (607 | ) | (1,372 | ) | ||||
Class I Shares | (353,463 | ) | (823,411 | ) | ||||
Decrease in net assets from distributions to shareholders | (422,422 | ) | (981,750 | ) | ||||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 5,673,083 | 17,334,085 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 134,460 | 361,910 | ||||||
5,807,543 | 17,695,995 | |||||||
Cost of shares redeemed | (28,602,984 | ) | (43,353,450 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (22,795,441 | ) | (25,657,455 | ) | ||||
Net increase (decrease) in net assets | (23,172,786 | ) | (28,368,195 | ) | ||||
Net assets at the beginning of period | 52,390,796 | 80,758,991 | ||||||
Net assets at the end of period | $ | 29,218,010 | $ | 52,390,796 | ||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | (25,441 | ) | $ | (18,048 | ) |
See accompanying notes to financial statements.
NUVEEN | 21 |
Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended June 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (10/02) |
| |||||||||||||||||||||||||||||||||||||||
2018(e) | $ | 8.67 | $ | 0.07 | $ | (0.07 | ) | $ | — | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | 8.59 | |||||||||||||||||||
2017 | 8.96 | 0.11 | (0.30 | ) | (0.19 | ) | (0.10 | ) | — | — | (0.10 | ) | 8.67 | |||||||||||||||||||||||||||
2016 | 8.80 | 0.11 | 0.16 | 0.27 | (0.11 | ) | — | — | (0.11 | ) | 8.96 | |||||||||||||||||||||||||||||
2015 | 8.81 | 0.10 | (0.02 | ) | 0.08 | (0.09 | ) | — | — | (0.09 | ) | 8.80 | ||||||||||||||||||||||||||||
2014 | 8.79 | 0.11 | 0.03 | 0.14 | (0.11 | ) | — | (0.01 | ) | (0.12 | ) | 8.81 | ||||||||||||||||||||||||||||
2013 | 9.02 | 0.14 | (0.20 | ) | (0.06 | ) | (0.17 | ) | — | — | (0.17 | ) | 8.79 | |||||||||||||||||||||||||||
Class C (10/09) |
| |||||||||||||||||||||||||||||||||||||||
2018(e) | 8.69 | 0.04 | (0.09 | ) | (0.05 | ) | (0.04 | ) | — | — | (0.04 | ) | 8.60 | |||||||||||||||||||||||||||
2017 | 8.98 | 0.05 | (0.30 | ) | (0.25 | ) | (0.04 | ) | — | — | (0.04 | ) | 8.69 | |||||||||||||||||||||||||||
2016 | 8.82 | 0.04 | 0.16 | 0.20 | (0.04 | ) | — | — | (0.04 | ) | 8.98 | |||||||||||||||||||||||||||||
2015 | 8.83 | 0.04 | (0.02 | ) | 0.02 | (0.03 | ) | — | — | (0.03 | ) | 8.82 | ||||||||||||||||||||||||||||
2014 | 8.80 | 0.05 | 0.04 | 0.09 | (0.05 | ) | — | (0.01 | ) | (0.06 | ) | 8.83 | ||||||||||||||||||||||||||||
2013 | 9.03 | 0.07 | (0.21 | ) | (0.14 | ) | (0.09 | ) | — | — | (0.09 | ) | 8.80 | |||||||||||||||||||||||||||
Class R3 (10/09) |
| |||||||||||||||||||||||||||||||||||||||
2018(e) | 8.67 | 0.06 | (0.08 | ) | (0.02 | ) | (0.06 | ) | — | — | (0.06 | ) | 8.59 | |||||||||||||||||||||||||||
2017 | 8.97 | 0.09 | (0.31 | ) | (0.22 | ) | (0.08 | ) | — | — | (0.08 | ) | 8.67 | |||||||||||||||||||||||||||
2016 | 8.80 | 0.09 | 0.16 | 0.25 | (0.08 | ) | — | — | (0.08 | ) | 8.97 | |||||||||||||||||||||||||||||
2015 | 8.81 | 0.08 | (0.02 | ) | 0.06 | (0.07 | ) | — | — | (0.07 | ) | 8.80 | ||||||||||||||||||||||||||||
2014 | 8.78 | 0.09 | 0.04 | 0.13 | (0.09 | ) | — | (0.01 | ) | (0.10 | ) | 8.81 | ||||||||||||||||||||||||||||
2013 | 9.01 | 0.12 | (0.21 | ) | (0.09 | ) | (0.14 | ) | — | — | (0.14 | ) | 8.78 | |||||||||||||||||||||||||||
Class I (10/02) |
| |||||||||||||||||||||||||||||||||||||||
2018(e) | 8.67 | 0.08 | (0.07 | ) | 0.01 | (0.09 | ) | — | — | (0.09 | ) | 8.59 | ||||||||||||||||||||||||||||
2017 | 8.97 | 0.13 | (0.30 | ) | (0.17 | ) | (0.13 | ) | — | — | (0.13 | ) | 8.67 | |||||||||||||||||||||||||||
2016 | 8.81 | 0.13 | 0.16 | 0.29 | (0.13 | ) | — | — | (0.13 | ) | 8.97 | |||||||||||||||||||||||||||||
2015 | 8.82 | 0.12 | (0.01 | ) | 0.11 | (0.12 | ) | — | — | (0.12 | ) | 8.81 | ||||||||||||||||||||||||||||
2014 | 8.80 | 0.13 | 0.04 | 0.17 | (0.14 | ) | — | (0.01 | ) | (0.15 | ) | 8.82 | ||||||||||||||||||||||||||||
2013 | 9.03 | 0.16 | (0.21 | ) | (0.05 | ) | (0.18 | ) | — | — | (0.18 | ) | 8.80 |
22 | 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) | ||||||||||||||||||||||||||||
(0.05 | )% | $ | 5,896 | 1.15 | %* | 1.21 | %* | 0.79 | %* | 1.57 | %* | 37 | % | |||||||||||||||||||||
(2.08 | ) | 9,458 | 1.04 | 1.02 | 0.79 | 1.27 | 82 | |||||||||||||||||||||||||||
3.06 | 13,760 | 1.00 | 1.08 | 0.85 | 1.23 | 58 | ||||||||||||||||||||||||||||
0.93 | 9,010 | 1.02 | 1.00 | 0.85 | 1.17 | 59 | ||||||||||||||||||||||||||||
1.65 | 9,621 | 1.01 | 1.14 | 0.85 | 1.30 | 31 | ||||||||||||||||||||||||||||
(0.74 | ) | 11,034 | 1.01 | 1.41 | 0.85 | 1.57 | 55 | |||||||||||||||||||||||||||
(0.54 | ) | 840 | 1.90 | * | 0.46 | * | 1.54 | * | 0.82 | * | 37 | |||||||||||||||||||||||
(2.81 | ) | 1,169 | 1.79 | 0.27 | 1.54 | 0.52 | 82 | |||||||||||||||||||||||||||
2.29 | 1,550 | 1.75 | 0.34 | 1.60 | 0.49 | 58 | ||||||||||||||||||||||||||||
0.18 | 667 | 1.77 | 0.25 | 1.60 | 0.42 | 59 | ||||||||||||||||||||||||||||
0.98 | 639 | 1.76 | 0.40 | 1.60 | 0.56 | 31 | ||||||||||||||||||||||||||||
(1.53 | ) | 1,090 | 1.76 | 0.66 | 1.60 | 0.82 | 55 | |||||||||||||||||||||||||||
(0.18 | ) | 82 | 1.41 | * | 0.96 | * | 1.04 | * | 1.32 | * | 37 | |||||||||||||||||||||||
(2.46 | ) | 82 | 1.28 | 0.76 | 1.04 | 1.00 | 82 | |||||||||||||||||||||||||||
2.90 | 143 | 1.25 | 0.83 | 1.10 | 0.98 | 58 | ||||||||||||||||||||||||||||
0.66 | 137 | 1.27 | 0.75 | 1.10 | 0.92 | 59 | ||||||||||||||||||||||||||||
1.49 | 137 | 1.26 | 0.89 | 1.10 | 1.05 | 31 | ||||||||||||||||||||||||||||
(1.00 | ) | 168 | 1.26 | 1.17 | 1.10 | 1.32 | 55 | |||||||||||||||||||||||||||
0.09 | 22,400 | 0.89 | * | 1.45 | * | 0.54 | * | 1.80 | * | 37 | ||||||||||||||||||||||||
(1.92 | ) | 41,682 | 0.78 | 1.27 | 0.54 | 1.51 | 82 | |||||||||||||||||||||||||||
3.34 | 65,305 | 0.75 | 1.33 | 0.60 | 1.48 | 58 | ||||||||||||||||||||||||||||
1.20 | 65,850 | 0.77 | 1.24 | 0.60 | 1.40 | 59 | ||||||||||||||||||||||||||||
1.90 | 86,186 | 0.76 | 1.36 | 0.60 | 1.52 | 31 | ||||||||||||||||||||||||||||
(0.53 | ) | 52,291 | 0.76 | 1.67 | 0.60 | 1.83 | 55 |
(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. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(e) | For the six months ended December 31, 2017. |
* | Annualized. |
See accompanying notes to financial statements.
NUVEEN | 23 |
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 Intermediate Government Bond Fund (the “Fund”), a diversified fund, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
The end of the reporting period for the Fund is December 31, 2017, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2017 (the “current fiscal period”).
Investment Adviser
The Fund’s 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 Fund, overseas the management of the Fund’s portfolio, manages the Fund’s business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into a sub-advisory agreement with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolio of the Fund.
Fund Liquidation
On November 16, 2017, the Adviser announced that the Fund will be liquidated, as approved by the Fund’s Board of Directors (the “Board”). Effective December 18, 2017, the Fund stopped accepting purchases from new investors and existing shareholders, except that defined contribution retirement plans that held Fund shares as of November 16, 2017 could continue to purchase Fund shares until January 16, 2018 (subsequent to the close of this reporting period). Existing shareholders continued to reinvest dividends and capital gains distributions received from the Fund. The liquidation took place after the close of business on January 22, 2018, at which time shareholders received the proceeds of the liquidation.
Investment Objectives
The Fund’s investment objective is to provide investors with current income to the extent consistent with the preservation of capital.
The Fund’s most recent prospectus provides further descriptions of the Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The 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 Fund in the preparation of its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Fund has earmarked securities in its portfolio with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Fund did not have any outstanding when-issued/delayed delivery purchase commitments.
Investment Income
Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue
24 | NUVEEN |
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 daily and distributed to shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the transfer agent.
Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge 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 Fund that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Realized and unrealized capital gains and losses of the Fund 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 trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent directors that 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 Fund 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 the 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, the Fund manages its cash collateral and securities collateral on a counterparty basis.
The Fund’s 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
NUVEEN | 25 |
Notes to Financial Statements (Unaudited) (continued)
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). |
Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the 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 the Fund’s fair value measurements as of the end of the reporting period:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long-Term Investments*: | ||||||||||||||||
U.S. Government and Agency Obligations | $ | — | $ | 23,698,603 | $ | — | $ | 23,698,603 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 4,498,838 | — | 4,498,838 | ||||||||||||
Municipal Bonds | — | 1,002,507 | — | 1,002,507 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 764,063 | — | — | 764,063 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 133,173 | — | — | 133,173 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | (13,604 | ) | — | — | (13,604 | ) | ||||||||||
Total | $ | 883,632 | $ | 29,199,948 | $ | — | $ | 30,083,580 |
* | Refer to the Fund’s Portfolio of Investments for state classifications, where applicable. |
** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s 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
26 | NUVEEN |
approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Fund, 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
Securities Lending
In order to generate additional income, the 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 Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Fund also has the ability to recall the securities on loan at any time.
The Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the Fund’s securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its investment by the Fund. The Fund bears the risk of loss with respect to the investment of collateral.
The Fund’s custodian, U.S. Bank National Association (“U.S. Bank”), serves as its securities lending agent. Income earned from the securities lending program is paid to the Fund. Income from securities lending is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the Fund, and the collateral delivered related to those securities, as of the end of the reporting period.
Asset Class out on Loan | Long-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | |||||||
U.S. Government and Agency Obligations | $742,805 | $ | (742,805 | ) | $ | — |
* | 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. |
NUVEEN | 27 |
Notes to Financial Statements (Unaudited) (continued)
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
The Fund is authorized to invest in certain derivative instruments. The Fund records derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Fund’s investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Futures Contracts
Upon execution of a futures contract, the Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Cash collateral at brokers for investments in futures contracts” on the Statement of Assets and Liabilities. Investments in futures contracts obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If the Fund has unrealized appreciation the clearing broker would credit the Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, the Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, the Fund used U.S. Treasury futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Average notional amount of futures contracts outstanding* | $ | 7,878,970 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Fund as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Interest rate | Futures contracts | — | $ | — | Payable for variation margin on future contracts* | $ | (13,604 | ) |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported on the Fund’s Portfolio of Investments and not the asset and/or liability derivatives location as described in the table above. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | |||||||
Interest rate | Futures contracts | $ | 32,199 | $ | (36,427 | ) |
Market and Counterparty Credit Risk
In the normal course of business the 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
28 | NUVEEN |
exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose the Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of the 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.
The 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 the Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when the Fund has an unrealized loss, the Fund has instructed the custodian to pledge assets of the Fund 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 Fund has 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 12/31/17 | Year Ended 6/30/17 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 50,100 | $ | 433,584 | 898,274 | $ | 7,881,888 | ||||||||||
Class C | 28,535 | 247,531 | 123,756 | 1,091,274 | ||||||||||||
Class R3 | 154 | 1,337 | 7,423 | 65,740 | ||||||||||||
Class I | 574,507 | 4,990,631 | 944,414 | 8,295,183 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 7,066 | 61,071 | 16,460 | 144,101 | ||||||||||||
Class C | 553 | 4,784 | 640 | 5,611 | ||||||||||||
Class R3 | 71 | 607 | 156 | 1,366 | ||||||||||||
Class I | 7,861 | 67,998 | 24,035 | 210,832 | ||||||||||||
668,847 | 5,807,543 | 2,015,158 | 17,695,995 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (461,200 | ) | (3,997,687 | ) | (1,359,324 | ) | (11,822,085 | ) | ||||||||
Class C | (66,065 | ) | (572,376 | ) | (162,508 | ) | (1,419,172 | ) | ||||||||
Class R3 | (74 | ) | (636 | ) | (14,150 | ) | (122,605 | ) | ||||||||
Class I | (2,779,813 | ) | (24,032,285 | ) | (3,445,961 | ) | (29,989,588 | ) | ||||||||
(3,307,152 | ) | (28,602,984 | ) | (4,981,943 | ) | (43,353,450 | ) | |||||||||
Net increase (decrease) | (2,638,305 | ) | $ | (22,795,441 | ) | (2,966,785 | ) | $ | (25,657,455 | ) |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding investments purchased with collateral from securities lending and derivative transactions) during the current fiscal period were as follows:
Purchases: | ||||
Investment securities | $ | 897,976 | ||
U.S. Government and agency obligations | 8,188,250 | |||
Sales and maturities: | ||||
Investment securities | 7,975,738 | |||
U.S. Government and agency obligations | 23,382,180 |
6. Income Tax Information
The 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 Fund 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 Fund 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.
NUVEEN | 29 |
Notes to Financial Statements (Unaudited) (continued)
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 Fund.
The tables below present the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, as determined on a federal income tax basis, as of December 31, 2017.
For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.
Tax cost of investments | $ | 29,826,770 | ||
Gross unrealized: | ||||
Appreciation | $ | 429,053 | ||
Depreciation | (158,639 | ) | ||
Net unrealized appreciation (depreciation) of investments | $ | 270,414 | ||
Tax cost of futures | $ | (13,604 | ) | |
Net unrealized appreciation (depreciation) of futures | — |
Permanent differences, primarily due to expiration of capital loss carryforwards and federal taxes paid, resulted in reclassifications among the Fund’s components of net assets as of June 30, 2017, the Fund’s last tax year end, as follows:
Capital paid-in | $ | (3,538,410 | ) | |
Undistributed (Over-distribution of) net investment income | — | |||
Accumulated net realized gain (loss) | 3,538,410 |
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2017, the Fund’s last tax year end, were as follows:
Undistributed net ordinary income1 | $ | 43,092 | ||
Undistributed net long-term capital gains | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared during the period June 1, 2017 through June 30, 2017 and paid on July 3, 2017. 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 Fund’s last tax year ended June 30, 2017, was designated for purposes of the dividends paid deduction as follows:
Distributions from net ordinary income2 | $ | 1,015,757 | ||
Distributions from net long-term capital gains | — |
2 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
As of June 30, 2017, the Fund’s last tax year end, the Fund had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
Capital losses to be carried forward – not subject to expiration | $ | 1,057,024 |
As of June 30, 2017, the Fund’s last tax year end, $3,538,398 of the Fund’s capital loss carryforwards expired.
7. Management Fees and Other Transactions with Affiliates
Management Fees
The 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 Fund from the management fees paid to the Adviser.
The Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables the 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.
30 | NUVEEN |
For the period July 1, 2017 through July 31, 2017, the annual fund-level fee, payable monthly, was calculated according to the following schedule:
Average Daily Net Assets | ||||
For the first $125 million | 0.2500 | % | ||
For the next $125 million | 0.2375 | |||
For the next $250 million | 0.2250 | |||
For the next $500 million | 0.2125 | |||
For the next $1 billion | 0.2000 | |||
For net assets over $2 billion | 0.1750 |
Effective August 1, 2017, the annual fund-Level fee, payable monthly, is calculated according to the following schedule:
Average Daily Net Assets | ||||
For the first $125 million | 0.2500 | % | ||
For the next $125 million | 0.2375 | |||
For the next $250 million | 0.2250 | |||
For the next $500 million | 0.2125 | |||
For the next $1 billion | 0.2000 | |||
For the next $3 billion | 0.1750 | |||
For the next $5 billion | 0.1500 | |||
For net assets over $10 billion | 0.1375 |
The annual complex-level fee, payable monthly, for the 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 the Fund is as follows:
Complex-Level Eligible Asset Breakpoint Level* | Effective Complex-Level Fee 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 open-end and closed-end 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 December 31, 2017, the complex-level fee for the Fund was 0.2000%. |
The Adviser has agreed to waive fees and/or reimburse 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 occurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.54% of the average daily net assets of any class of Fund shares. The expense limitation may be terminated or modified only with the approval of the Board.
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:
Sales charges collected | $ | 8,638 | ||
Paid to financial intermediaries | 6,848 |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
NUVEEN | 31 |
Notes to Financial Statements (Unaudited) (continued)
During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Commission advances | $ | 2 |
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:
12b-1 fees retained | $ | 1,077 |
The remaining 12b-1 fees charged to the Fund 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:
CDSC retained | $ | 3,462 |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Fund participated in an unsecured bank line of credit (“Unsecured Credit Line”) under which outstanding balances would bear interest at a variable rate. Although the Fund participated in the Unsecured Credit Line, it did not have any outstanding balances during the current fiscal period.
The Unsecured Credit Line was not renewed after its scheduled termination date on July 27, 2017.
Committed Line of Credit
The Fund, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $3 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include the Fund covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including the Fund covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 2018 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, the Fund did not utilize this facility.
9. New Accounting Pronouncements
FASB Accounting Standards Update (“ASU”) 2017-08 (“ASU 2017-08”) Premium Amortization on Purchased Callable Debt Securities
The FASB has issued ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the implications of ASU 2017-08, if any.
10. Subsequent Event
Fund Liquidation
As previously noted in Note 1 - General Information and Significant Accounting Policies, the Fund liquidated after the close of business on January 22, 2018.
32 | 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 DST Asset Manager Solutions, Inc. P.O. Box 8530 Boston, MA 02266-8530 |
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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 | 33 |
Used in this Report
Asset-Backed Securities (ABS): Securities whose value and income payments are derived from and collateralized by a specific pool of underlying assets. The pool of assets typically is a group of small and/or illiquid assets that may be difficult to sell individually. The underlying pools of asset-backed securities often include payments from credit cards, auto loans or mortgage loans.
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Basis Point: One one-hundredth of one percentage point, or 0.01%. For example, 25 basis points equals 0.25%.
Bloomberg Barclays Intermediate Government Bond Index: An unmanaged index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to 1 year and less than 10 years, are rated investment grade, and have $250 million or more of outstanding face value. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Commercial Mortgage-Backed Securities (CMBS): Commercial mortgage-backed securities are backed by cash flows of a mortgage or pool of mortgages on commercial real estate. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. CMBS are typically characterized by the following: i) loans on multi-family housing, non-residential property, ii) payments based on the amortization schedule of 25-30 years with a balloon payment due usually after 10 years, and iii) restrictions on prepayments.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Lipper Intermediate U.S. Government Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Intermediate U.S. Government Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge.
Mortgage-Backed Securities (MBS): Mortgage-backed securities (MBS) are bonds backed by pools of mortgages, usually with similar characteristics, and which return principal and interest in each payment. MBS are composed of residential mortgages (RMBS) or commercial mortgages (CMBS). RMBS are further divided into agency RMBS and non-agency RMBS, depending on the issuer.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Residential Mortgage-Backed Securities (RMBS): Residential mortgage-backed securities are securities the payments on which depend primarily on the cash flow from residential mortgage loans made to borrowers that are secured by residential real estate. RMBS consist of agency and non-agency RMBS. Agency RMBS have agency guarantees that assure investors that they will receive timely payment of interest and principal, regardless of delinquency or default rates on the underlying loans. Agency RMBS include securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and other federal agencies,
34 | NUVEEN |
or issues guaranteed by them. Non-agency RMBS do not have agency guarantees. Non-agency RMBS have credit enhancement built into the structure to shield investors from borrower delinquencies. The spectrum of non-agency residential mortgage loans includes traditional jumbo loans (prime), alternative-A loans (Alt-A), and home equity loans (sub-prime).
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
NUVEEN | 35 |
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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 manager 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-FIGB-1217P 427252-INV-B-02/19
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: March 8, 2018
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: March 8, 2018
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: March 8, 2018