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)
Christopher M. Rohrbacher
Vice President and Secretary
333 West Wacker Drive, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: June 30
Date of reporting period: December 31, 2018
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Mutual Funds
31 December
2018
Nuveen Income Funds
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||
Nuveen Core Bond Fund | FAIIX | NTIBX | — | NTIFX | FINIX | |||||
Nuveen Core Plus Bond Fund | FAFIX | FFAIX | FFISX | FPCFX | FFIIX | |||||
Nuveen High Income Bond Fund | FJSIX | FCSIX | FANSX | — | FJSYX | |||||
Nuveen Inflation Protected Securities Fund | FAIPX | FCIPX | FRIPX | FISFX | FYIPX | |||||
Nuveen Short Term Bond Fund | FALTX | FBSCX | NSSRX | NSSFX | FLTIX | |||||
Nuveen Strategic Income Fund | FCDDX | FCBCX | FABSX | FSFRX | FCBYX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
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3
Chairman’s Letter to Shareholders
Dear Shareholders,
The global economy seemed to reach a turning point in 2018. Growth was peaking in the U.S. and slowing elsewhere. Deregulation and tax law changes, which lowered corporate and individual tax rates and encouraged companies to repatriate overseas profits, helped boost U.S. economic growth and amplify corporate earnings during 2018. Meanwhile, a weakening housing market and a flattening yield curve in the U.S. and disappointing economic growth across Europe, China and Japan signaled caution. As the year developed, future corporate profit growth was looking less certain than at the start of the year. Adding to the uncertainty were the removal of U.S. central bank monetary stimulus, rising interest rates, a stronger U.S. dollar, trade negotiations and unpredictable politics, including Brexit and a prolonged U.S. government shutdown. Bearish sentiment intensified at the end of 2018, pressuring stocks, corporate bonds and commodities alike.
Although downside risks have been rising, the likelihood of a near-term recession remains low. Global growth is indeed slowing, but it’s still positive. The U.S. economy remains strong, even in the face of late-cycle pressures. Low unemployment and firming wages should continue to support consumer spending, and the Novembermid-term elections resulted in change, but no major surprises. In China, the government remains committed to using fiscal stimulus to offset softening exports. Europe also remains vulnerable to trade policy as well as Brexit uncertainty, but underlying strengths in European economies, including low unemployment that drives domestic demand, remain supportive of a mild expansion. In a slower growth environment, there are opportunities for investors who seek them more selectively.
We expect volatility and challenging conditions to persist in 2019 but also think there is potential for upside. You can prepare your investment portfolio by working with your financial advisor to review your goals, timeline and risk tolerance. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence J. Toth
Chairman of the Board
February 22, 2018
4
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 (NAM), 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 thesix-month reporting period ended December 31, 2018. The management teams include:
Nuveen Core Bond Fund
Jeffrey J. Ebert,Wan-Chong Kung, CFA, and Jason J. O’Brien, CFA, have been part of the management team for the Fund since 2000, 2002 and 2016, respectively. Portfolio manager Chris J. Neuharth retired from Nuveen Asset Management, LLC on June 1, 2018.
Effective December 14, 2018, the Board of Trustees of Nuveen Investment Funds, Inc. and the Board of Trustees of TIAA-CREF Funds have each approved the reorganization of the Nuveen Core Bond Fund (the “Target Fund”), into TIAA-CREF Bond Fund (the “Acquiring Fund”). In order for the reorganization to occur, it must be approved by the shareholders of the Target Fund. A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. For additional information, please consult the Target Fund’s prospectus.
Nuveen Core Plus Bond Fund
Timothy A. Palmer, CFA, has managed the Fund since 2003.Wan-Chong Kung, CFA, Jeffrey J. Ebert and Douglas M. Baker, CFA, joined the Fund as portfolio managers in 2001, 2005 and 2016, respectively. Portfolio manager Chris J. Neuharth retired from Nuveen Asset Management, LLC on June 1, 2018.
Effective December 14, 2018, the Board of Trustees of Nuveen Investment Funds, Inc. and the Board of Trustees of TIAA-CREF Funds have each approved the reorganization of the Nuveen Core Plus Bond Fund (the “Target Fund”), into TIAA-CREF Bond Plus Fund (the “Acquiring Fund”). In order for the reorganization to occur, it must be approved by the shareholders of the Target Fund. A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. For additional information, please consult the Target Fund’s prospectus.
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.
5
Portfolio Managers’ Comments(continued)
Nuveen High Income Bond Fund
John T. Fruit, CFA, has managed the Fund since 2006. Jeffrey T. Schmitz, CFA, has been part of the management team for the Fund since 2008. Effective December 31, 2018, John Fruit and Jeff Schmitz retired from NAM and are no longer portfolio managers on the Nuveen High Income Bond Fund, and Kevin Lorenz and Jean Lin are portfolio managers for the Fund.
Effective December 14, 2018, the Board of Trustees of Nuveen Investment Funds, Inc. and the Board of Trustees of TIAA-CREF Funds have each approved the reorganization of the Nuveen High Income Bond Fund (the “Target Fund”), into TIAA-CREF High-Yield Fund (the “Acquiring Fund”). In order for the reorganization to occur, it must be approved by the shareholders of the Target Fund. A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. For additional information, please consult the Target Fund’s prospectus.
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.
Effective December 14, 2018, the Board of Trustees of Nuveen Investment Funds, Inc. and the Board of Trustees of TIAA-CREF Funds have each approved the reorganization of the Nuveen Inflation Protected Securities Fund (the “Target Fund”), into TIAA-CREF Inflation-Linked Bond Fund (the “Acquiring Fund”). In order for the reorganization to occur, it must be approved by the shareholders of the Target Fund. A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. For additional information, please consult the Target Fund’s prospectus.
Nuveen Short Term Bond Fund
Peter L. Agrimson, CFA, Jason J. O’Brien, CFA, and Mackenzie S. Meyer have been on the management team since 2011, 2016 and 2016, respectively. Portfolio manager Chris J. Neuharth retired from Nuveen Asset Management, LLC on June 1, 2018.
Effective December 14, 2018, the Board of Trustees of Nuveen Investment Funds, Inc. and the Board of Trustees of TIAA-CREF Funds have each approved the reorganization of the Nuveen Short Term Bond Fund (the “Target Fund”), into TIAA-CREF Short-Term Bond Fund (the “Acquiring Fund”). In order for the reorganization to occur, it must be approved by the shareholders of the Target Fund. A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. For additional information, please consult the Target Fund’s prospectus.
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 asco-portfolio managers in 2000, 2011 and 2016, respectively.
What strategies were used to manage the Funds during thesix-month reporting period and how did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics used previously, although implementation of those strategies depended on the individual characteristics of the portfolios, as well as market conditions. The Funds’ management teams use a highly collaborative, research-driven approach that we believe offers the best opportunity to achieve consistent, superior long-term performance on a risk-adjusted basis across the full range of market environments. During the reporting period, the Funds were generally positioned for an environment of continued moderate economic growth. Nonetheless, during the reporting period we made smaller scaled shifts on an ongoing basis that were geared toward improving each Fund’s profile in response to changing conditions and valuations. These strategic moves are discussed in more detail within each Fund’s section of this report.
Nuveen Core Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed both the Bloomberg Barclays U.S. Aggregate Bond Index and the Lipper Core Bond Funds Classification Average for thesix-month reporting period. Citing strong economic growth and job gains, the Federal Reserve (Fed) raised interest rates two times in September and in December 2018, despite increased market volatility and
6
tightening financial conditions as the reporting period progressed. At the September meeting, the Fed removed the long-standing “accommodative” language from its interest rate positioning statement, marking the end of an era of easy U.S. monetary policy. In December, however, policymakers acknowledged some headwinds and lowered projections for U.S. gross domestic product (GDP) and inflation, while signaling the likelihood for fewer rate hikes in 2019. For thesix-month reporting period as a whole, Treasury yields increased for the shortest maturities at the front end of the yield curve, driven by the Fed rate hikes. However, investors priced in expectations for the Fed to reverse course and ease next year for securities with maturities of one year or more, helping to drive an inversion at the front end of the Treasury yield curve. For example, the yield onone-yearT-bills ended the reporting period at 2.63%, which was higher than yields on five-year securities, which ended at 2.51%. After reaching as high as 3.24% in early November 2018, the yield on the10-year Treasury fell sharply to end the reporting period at 2.69%. The broad fixed income market returned 1.65% for the reporting period as measured by the benchmark Bloomberg Barclays U.S. Aggregate Bond Index.
Early in the reporting period, investment grade credit had rebounded from a difficult first half of 2018, posting strong excess returns versus Treasuries. The segment was able to overcome a negative technical backdrop that included sharply declining demand fromnon-U.S. investors as European quantitative easing slowed. However, financial conditions tightened as equity volatility rose sharply in the final months of the reporting period, stock markets declined significantly and spreads moved wider in response to weakening global growth, trade worries, Fed action, lower oil prices and investor outflows from risk assets. In the end, excess returns were negative for investment grade credit versus Treasuries over the reporting period.
Overall during the reporting period, the mortgage-backed securities (MBS) underperformed duration matched Treasuries. Earlier in the reporting period, the net supply of MBS rose as summer seasonal issuance increased, while demand slowed from banks as well as foreign buyers, due to increased dollar hedging costs. Despite these factors, the segment performed well as demand from money managers increased, while range bound rates and low levels of volatility provided a favorable backdrop for MBS. However, in the final months of 2018, interest rate and broad market volatility proved to be a tough environment for the MBS sector, which underperformed duration matched Treasuries. Soft fundamentals and negative technicals also weighed on the segment.
Securitized sectors posted mixed performance overall for the reporting period as valuations improved for asset-backed securities (ABS) while valuations for commercial mortgage-backed securities (CMBS) declined. Strong job growth and solid corporate earnings provided support for consumer ABS and the commercial real estate market. Within the securitized sectors, investors continued to move down in quality in search of cheaper bonds and higher yields early in the reporting period. However, these sectors were not immune to the volatility that overshadowed the fixed income markets in the final months of 2018. Although both the CMBS and ABS sectors posted negative excess returns in the fourth quarter 2018, a strong third quarter 2018 for ABS allowed the segment to produce a positive excess return overall forsix-month reporting period.
As noted above, corporate credit fairly significantly underperformed duration matched Treasuries during the reporting period, posting negative excess returns. Therefore, the Fund’s overweight to investment grade credit hindered performance. Within the segment, the Fund carried an overweight to BBB rated securities, which also hurt results since this portion of the capital stack underperformed the broader index. However, selection within investment grade was somewhat of a positive offset during the reporting period because we owned slightly shorter duration bonds than the index, which outperformed in the negative environment.
Although the Fund benefited from its overweight allocation to the CMBS sector, our emphasis on lower quality securities in the sector detracted later in the reporting period because they underperformed AAA rated CMBS. Therefore, the CMBS segment had little overall impact on performance. Also, as noted above, the ABS market slightly outperformed duration matched Treasuries as a strong third quarter 2018 was able to offset a negative fourth quarter 2018. However, because the outperformance was modest relative to the othernon-Treasury sectors, the Fund’s ABS overweight was not a meaningful driver of returns during the reporting period. The Fund’s underweight to the MBS sector also had virtually no impact on performance.
The yield curve inverted during the reporting period as short rates rose more than longer term rates, driven by Fed rate hikes. Our yield curve positioning proved beneficial because we underweighted securities at the front end of the curve (where rates rose and prices fell) and overweighted securities with maturities longer than 10 years (where rates fell and prices rose). The Fund also had a shorter duration than the benchmark throughout the reporting period, which lessened its interest rate sensitivity, but detracted over the reporting period.
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 negligible.
Nuveen Core Plus Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed both the Bloomberg Barclays U.S. Aggregate Bond Index and the Lipper Core Plus Bond Funds Classification Average for thesix-month reporting period. Citing strong economic growth and job gains, the Federal Reserve (Fed) raised interest rates two times in September and in December 2018, despite increased market volatility and tightening financial conditions as the reporting period progressed. At the September meeting, the Fed removed the long-standing “accommodative” language from its interest rate positioning statement, marking the end of an era of easy U.S. monetary policy. In December, however, policymakers acknowledged some headwinds and lowered projections for U.S. gross domestic product (GDP) and inflation, while signaling the likelihood for fewer rate hikes in 2019. For thesix-month reporting period as a whole, Treasury yields increased for the shortest maturities at the front end of the yield curve, driven by the Fed rate hikes. However, investors priced in expectations for the Fed to reverse course and ease in 2019 for securities with maturities of one year or more, helping to drive an inversion at the front end of the Treasury yield curve. For example, the yield onone-yearT-bills ended the reporting period at 2.63%, which was above the yield on five-year securities, which ended at 2.51%. After reaching as high as 3.24% in early November 2018, the yield on the10-year Treasury fell sharply to end the reporting period at 2.69%. The broad fixed income market returned 1.65% for the reporting period as measured by the benchmark Bloomberg Barclays U.S. Aggregate Bond Index.
Early in the reporting period, investment grade credit had rebounded from a difficult first half of 2018, posting strong excess returns versus Treasuries. The segment was able to overcome a negative technical backdrop that included sharply declining demand fromnon-U.S. investors as European quantitative easing slowed. However, financial conditions tightened as equity volatility rose sharply in the final months of the reporting period, stock markets declined significantly and spreads moved wider in response to weakening global growth, trade worries, Fed action, lower oil prices and investor outflows from risk assets. In the end, excess returns were negative for investment grade credit versus Treasuries over thesix-month reporting period.
Overall during the reporting period, the mortgage-backed securities (MBS) underperformed duration matched Treasuries. Earlier in the reporting period, the net supply of MBS rose as summer seasonal issuance increased, while demand slowed from banks as well as foreign buyers, due to increased dollar hedging costs. Despite these factors, the segment performed well as demand from money managers increased, while range bound rates and low levels of volatility provided a favorable backdrop for MBS. However, in the final months of the reporting period, interest rate and broad market volatility proved to be a tough environment for the MBS sector, which underperformed duration matched Treasuries. Soft fundamentals and negative technicals also weighed on the segment.
Securitized sectors posted mixed performance overall for the reporting period as valuations improved for asset-backed securities (ABS) while valuations for commercial mortgage-backed securities (CMBS) declined. Strong job growth and solid corporate earnings provided support for consumer ABS and the commercial real estate market. Within the securitized sectors, investors continued to move down in quality in search of cheaper bonds and higher yields early in the reporting period. However, these sectors were not immune to the volatility that overshadowed the fixed income markets in the final months of 2018. Although both the CMBS and ABS sectors posted negative excess returns in the fourth quarter 2018, a strong third quarter 2018 for ABS allowed the segment to produce a positive excess return overall forsix-month reporting period.
In the first few months of the reporting period, high yield credit performed well with spreads reaching cycle lows as economic activity and the supply technical remained highly supportive. Adding to the positive backdrop was a healthy earnings environment and continued supportive financing markets, which helped keep default rates well contained. However, in the final months of the reporting period, the high yield market sold off sharply driven by concerns about growth, Fed rate hikes, trade tensions and questions regarding the length of the credit cycle. Both high yield and leveraged loans saw large investor outflows, accelerating into the end of the reporting period, which drove prices lower despite the positive technical of limited issuance. Nonetheless, credit fundamentals remained solid.
Emerging market (EM) debt was under pressure early on as concerns about tighter global funding conditions and increasing trade tensions took their toll on commodity prices and country specific events in Argentina and Turkey led to outflows and wider spreads. However, the sector’s performance improved in response to policy actions in key EM countries, including stimulus in China and steps
8
in Argentina and Turkey to respond to market pressures. In addition, the segment was supported by signs from central bankers that the Fed and European Central Bank were likely to be responsive to a deterioration in financial conditions when considering further policy actions. Nonetheless, heading into the end of the reporting period, EM struggled along with other risk sectors in the face of growth fears and trade tensions.
Early in the reporting period, yields rose globally as the Fed continued to raise rates, economic growth continued despite trade dislocations and many central banks signaled comfort with ongoing normalization plans. Although remaining measured, the European Central Bank (ECB) signaled growing confidence in firming inflation. In the U.K., the Bank of England raised interest rates amid greater confidence in the country’s outlook. As the reporting period progressed, global developed market yields fell and yield curves flattened, driven by concerns that slowing global growth and lower oil prices would push down inflation expectations. Global manufacturing and export growth continued to decelerate as tighter financial conditions and trade tensions hurt economic confidence. Brexit uncertainty lingered and France was negatively impacted by the “yellow vest” populist political protests.
The Fund’s performance shortfall entirely occurred in the second half of the reporting period and was driven by our broad overweight to credit sectors, which sold off sharply. In particular, our allocations to the preferred/contingent capital (CoCo) securities and high yield sectors were the largest detractors to performance. In addition, the Fund’s overweight to investment grade corporates was also a drag on results. Spreads widened sharply across all credit oriented sectors during the reporting period, particularly driven by heavy investor outflows late in the reporting period as market liquidity declined, magnifying price impacts. High yield spreads widened sharply by 163 basis points over thesix-month reporting period to the end of the reporting period at 526 basis points over Treasuries, whereas investment grade spreads were 27 basis points wider, ending the reporting period at 143 basis points over Treasuries. The preferred and CoCo segment, in particular, was weighed down by nagging geopolitical headlines concerning Brexit, a fragile agreement between Italy and the European Union (EU) regarding the Italian budget, increasingly tense trade war rhetoric between the U.S. and China, and a handful of idiosyncratic headlines for names like General Electric, General Motors and Pacific Gas & Electric.
Security selection within the investment grade corporate segment was a small positive contributor to performance. The positive impact from our overweight to financials more than offset the drag from an overweight to BBB rated issues, which underperformed the A rated issues.
Broadernon-corporate sector exposures did not have much impact on the Fund’s performance, although positions ABS added modestly to returns. The Fund’s positioning innon-dollar bonds was light and the performance impact was minimal. Currency positioning had no impact because the Fund’s foreign positions were hedged.
Our defensive interest rate positioning was a significant detractor from relative performance as rates declined due to market turmoil in the second half of the reporting period. However, this was largely offset by gains from our positioning along the yield curve.
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 negative 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.
Nuveen High Income Bond Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed both the Bloomberg Barclays High Yield 2% Issuer Capped Index and the Lipper High Current Yield Funds Classification Average for thesix-month reporting period. In the first few months of the reporting period, high yield credit performed well with spreads reaching their tightest levels of this cycle. Solid global economic growth kept fundamentals in the high yield market firm while the supply technical remained highly supportive. Many of the same technical factors that have kept high yield spreads straddling cyclical lows earlier in the reporting period remained largely in place
9
Portfolio Managers’ Comments(continued)
including strong demand for U.S. credit from overseas buyers, limited net new issue supply and stabilizing retail flows. Adding to the positive backdrop was a healthy earnings environment and continued supportive financing markets, which helped keep default rates well contained. During the first half of the reporting period, lower rated CCC bonds continued to lead among the rating groups, while BB rated securities underperformed as investors sought out shorter duration, wider-spread credit to offset rising interest rates.
However, in the final months of the reporting period, the high yield market sold off sharply driven by concerns about economic growth, Federal Reserve (Fed) rate hikes, trade tensions and questions regarding the length of the credit cycle. Unlike earlier in the 2018, lower quality, CCC rated securities underperformed during thesell-off due to credit worries and lower liquidity within the segment. Both the high yield and leveraged loan sectors saw large investor outflows, accelerating into year end, which drove prices lower despite the positive technical of limited issuance. Nonetheless, credit fundamentals remained solid. Balance sheet leverage and interest coverage remained consistent withmid-cycle expansion and earnings continued to validate strong fundamentals, even as earnings growth rates moderated. Also, default rates remained subdued. High yield spreads widened sharply by 163 basis points over thesix-month reporting period to the end of the reporting period at 526 basis points over Treasuries. The sector underperformed the majority of other fixed income asset classes during the reporting period, returning-2.24% as measured by the benchmark Bloomberg Barclays High Yield 2% Issuer Capped Bond Index. From an industry standpoint, the weakest spots within the U.S. high yield market were energy and finance companies, whereas thenon-cyclical and communications industries performed best, although still in negative territory.
The preferred and contingent capital (CoCo) securities segment also came under pressure during the reporting period, along with thesell-off in high yield credit and risk assets generally. The preferred/CoCo sector was pressured by geopolitical headlines concerning Brexit, negotiations between Italy and the European Union regarding the Italian budget, and a handful of idiosyncratic headlines for names like General Electric, General Motors and Pacific Gas & Electric. However, leveraged loans outperformed high yield bonds during the reporting period because of the floating rate and secured features of loans, despite headwinds in the segment due to heavy supply.
The Fund’s underperformance during the reporting period was mainly driven by security selection and relative weightings in several industries. The primary detractor from Fund performance was an overweight to basic industries and the impact from cyclical exposures generally, including capital goods, retail and home construction. These industries underperformed in light of market concerns about economic growth. In the energy sector, performance was negatively impacted by our security selection as higher beta holdings suffered later in the reporting period amid market pressures from lower oil prices. However, an underweight to energy in aggregate moderated the negative impact from the sector. Underweights to communications and health care detracted from performance because these industries fared better than the overall market during the reporting period. Fund positioning in the food and beverage industry was a positive factor. Exposure to loans in the Fund also added to relative performance.
The Fund’s positioning in preferred and CoCo securities, which had been a source of outperformance earlier in 2018, was a marginal drag on performance as the sector sold off in tandem with the broad risk sell off impacting other credit sectors. The sector continued to exhibit solid fundamentals, but given the breadth of pressure on risk assets, market volatility, as well as headlines out of Europe, the sector lagged high yield marginally and didn’t provide any offset versus the decline in high yield corporates.
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. The Fund also used credit default swaps to hedge the Fund’s high yield credit exposure. These positions had a negative impact on performance during the reporting period.
Nuveen Inflation Protected Securities Fund
The Fund’s Class A Shares at net asset value (NAV) performed in line with the Bloomberg Barclays U.S. TIPS Index and outperformed the Lipper Inflation-Protected Bond Funds Classification Average for thesix-month reporting period. Citing strong economic growth
10
and job gains, the Federal Reserve (Fed) raised interest rates two times in September and in December 2018, despite increased market volatility and tightening financial conditions as the reporting period progressed. At the September meeting, the Fed removed the long-standing “accommodative” language from its interest rate positioning statement, marking the end of an era of easy U.S. monetary policy. In December, however, policymakers acknowledged some headwinds and lowered projections for U.S. gross domestic product (GDP) and inflation, while signaling the likelihood for fewer rate hikes in 2019. For thesix-month reporting period as a whole, Treasury yields increased for the shortest maturities at the front end of the yield curve, driven by the Fed rate hikes. However, investors priced in expectations for the Fed to reverse course and ease in 2019 for securities with maturities of one year or more, helping to drive an inversion at the front end of the Treasury yield curve. For example, the yield onone-yearT-bills ended the reporting period at 2.63%, which was higher than yields on five-year securities, which ended at 2.51%. After reaching as high as 3.24% in early November 2018, the yield on the10-year Treasury fell sharply to end the reporting period at 2.69%.
The Treasury inflation-protected securities (TIPS) market significantly underperformed nominal Treasuries and was one of the weakest areas within the fixed income market during the reporting period. The market was weighed down by concerns that the Fed would continue to tighten rates too quickly combined with slowing U.S. and global growth. After dropping slightly early in the reporting period, investor flows into the TIPS asset class bounced back, peaking in early September 2018 before turning negative again through the end of the reporting period, aggravating negative TIPS price action. Although oil price levels reached new highs in late June 2018, which had supported TIPS in the previous reporting period, they dropped precipitously throughout the second half of the year. Real yields moved higher (and therefore prices were lower) across the TIPS yield curve during the reporting period. For five-year TIPS, real yields increased 34 basis points, ending 2018 at 1.00%. However, yields for10-year TIPS ended the reporting period only 23 basis points higher and at 0.97%, which inverted thefive-to-10 year part of the curve, meaning that five-year TIPS were yielding more than10-year TIPS. Yields for30-year TIPS crossed the 1% threshold and ended the reporting period 34 basis points higher at 1.21% by year end. In the first few months of the reporting period, breakeven spreads were little changed across the TIPS curve, trading in a very narrow range as investors’ appetite for inflation protection appeared to have moderated. However, in the second half of the reporting period, risk asset and energy market volatility caused TIPS breakeven spreads to collapse. (Breakeven spreads measure the difference between the yields of nominal Treasuries versus TIPS with the same maturity.) The TIPS sector returned-1.24% as measured by the Bloomberg Barclays U.S. TIPS Index, versus 1.96% for the Bloomberg Barclays U.S. Treasury Index.
Early in the reporting period, investment grade credit had rebounded from a difficult first half of the 2018, posting strong excess returns versus Treasuries. The segment was able to overcome a negative technical backdrop that included sharply declining demand fromnon-U.S. investors as European quantitative easing slowed. However, financial conditions tightened as equity volatility rose sharply in the final months of the reporting period, stock markets declined significantly and spreads moved wider in response to weakening global growth, trade worries, Fed action, lower oil prices and investor outflows from risk assets. In the end, excess returns were negative for investment grade credit versus Treasuries over the reporting period.
In the first few months of the reporting period, high yield credit also performed well with spreads reaching cycle lows as economic activity and the supply technical remained highly supportive. Adding to the positive backdrop was a healthy earnings environment and continued supportive financing markets, which helped keep default rates well contained. However, in the final months of the reporting period, the high yield market sold off sharply driven by concerns about growth, Fed rate hikes, trade tensions and questions regarding the length of the credit cycle. The high yield market saw large investor outflows, accelerating into year end 2018, which drove prices lower despite the positive technical of limited issuance. Nonetheless, credit fundamentals remained solid.
Overall during the reporting period, the mortgage-backed securities (MBS) underperformed duration matched Treasuries. Earlier in the reporting period, the net supply of MBS rose as summer seasonal issuance increased, while demand slowed from banks as well as foreign buyers, due to increased dollar hedging costs. Despite these factors, the segment performed well as demand from money managers increased, while range bound rates and low levels of volatility provided a favorable backdrop for MBS. However, in the final months of the reporting period, interest rate and broad market volatility proved to be a tough environment for the MBS sector, which underperformed duration matched Treasuries. Soft fundamentals and negative technicals also weighed on the segment.
Securitized sectors posted mixed performance overall for the reporting period as valuations improved for asset-backed securities (ABS) while valuations for commercial mortgage-backed securities (CMBS) declined. Strong job growth and solid corporate earnings provided support for consumer ABS and the commercial real estate market. Within the securitized sectors, investors continued to
11
Portfolio Managers’ Comments(continued)
move down in quality in search of cheaper bonds and higher yields early in the reporting period. However, these sectors were not immune to the volatility that overshadowed the fixed income markets in the final months of the reporting period. Although both the CMBS and ABS sectors posted negative excess returns in the fourth quarter 2018, a strong third quarter 2018 for ABS allowed the segment to produce a positive excess return overall forsix-month reporting period.
The Fund’s results during the reporting period were aided by our underweight position in TIPS in favor of modest exposures to somenon-government spread sectors, including ABS, CMBS and MBS. These sectors each outperformed the TIPS segment to varying degrees over the reporting period. Although the Fund’s TIPS exposure represented approximately 85% of the portfolio by year end, this position still represented a significant underweight versus the index’s 100% TIPS exposure.
The Fund also benefited from our interest rate positioning throughout the reporting period. As noted above, short-term rates in both the nominal and TIPS markets rose fairly significantly. We had positioned the Fund with a shorter duration than the benchmark throughout the reporting period. This shorter duration stance lessened the Fund’s interest rate sensitivity, which proved beneficial in light of the move higher in real rates. The Fund ended the reporting period with a duration of 6.96 years, which was shorter than the 7.26 year duration of the Bloomberg Barclays TIPS Index. Also, our yield curve positioning was biased toward the long end of the curve with an underweight to the front end, which aided the Fund’s results.
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) underperformed the Bloomberg Barclays1-3 Year Government/Credit Bond Index and outperformed the Lipper Short Investment Grade Debt Funds Classification Average for thesix-month reporting period. Citing strong economic growth and job gains, the Federal Reserve (Fed) raised interest rates two times in September and in December 2018, despite increased market volatility and tightening financial conditions as the reporting period progressed. At the September meeting, the Fed removed the long-standing “accommodative” language from its interest rate positioning statement, marking the end of an era of easy U.S. monetary policy. In December, however, policymakers acknowledged some headwinds and lowered projections for U.S. gross domestic product (GDP) and inflation, while signaling the likelihood for fewer rate hikes in 2019. For thesix-month reporting period as a whole, Treasury yields increased for the shortest maturities at the front end of the yield curve, driven by the Fed rate hikes. However, the Treasury curve flattened as volatility increased and markets began to price out future rate increases by the Fed. After reaching as high as 3.24% in early November 2018, the yield on the10-year Treasury fell sharply to end the reporting period at 2.69%. The return of the Fund’s shorter duration benchmark, the Bloomberg Barclays1-3 Year Government/Credit Index, was 1.52%.
Early in the reporting period, investment grade credit had rebounded from a difficult first half of 2018, posting strong excess returns versus Treasuries. The segment was able to overcome a negative technical backdrop that included sharply declining demand fromnon-U.S. investors as European quantitative easing slowed. However, financial conditions tightened as equity volatility rose sharply in the final months of the reporting period, stock markets declined significantly and spreads moved wider in response to weakening global growth, trade worries, Fed action, lower oil prices and investor outflows from risk assets. In the end, excess returns were negative for short-term investment grade credit versus Treasuries over the reporting period.
The market backdrop was significantly different between the first and the second halves of the reporting period, reflecting the above mentioned dynamics. As a result, most of the Fund’s positioning was awash in terms of performance contributions over the full reporting period. For example, in the first three months of the reporting period, an overweight to investment grade corporate bonds contributed positively to the Fund’s relative results. After widening during the first half of 2018, spreads moved tighter for short duration investment grade credit versus duration matched Treasuries. Within investment grade, the Fund also carried overweights to the industrial and financial industries, which outperformed the index. However, this same overweight detracted from the Fund’s relative results in the reporting period’s second half. Spreads widened out again for short duration investment grade credit versus duration matched Treasuries in therisk-off environment. While fundamentals remained stable, weakening fund flows and tighter liquidity conditions served as key headwinds in the credit sectors.
12
Likewise, securitized product sectors provided positive relative performance during the first three months of the reporting period. The asset-backed securities (ABS) sector represented a high quality, liquid segment of the portfolio that generated incremental yield. Short duration commercial mortgaged-backed securities (CMBS) and residential mortgaged-backed securities (MBS) also aided results as both sectors continued to provide attractive yield profiles, while exhibiting stability amidst broader market volatility. In addition, we maintained the Fund’s exposure to floating rate securities, which proved beneficial as rates rose at the front end of the yield curve. However, the overweight to securitized product sectors, particularlynon-agency MBS and CMBS, detracted from relative performance during the last three months of the reporting period. Both thenon-agency MBS and CMBS sectors suffered from negative technicals and broader market volatility.
Additionally, the Fund’s modest exposure to short duration, high yield credit detracted from relative performance. In the final months of the reporting period, the high yield market sold off sharply driven by concerns about growth, Fed rate hikes, trade tensions and questions regarding the length of the credit cycle. The segment saw large investor outflows, accelerating into the end of the reporting period, which drove prices lower despite the positive technical of limited issuance. The Fund’s high yield exposure is focused on bonds rated BB and single B withtwo- to four-year maturities.
Also noted above, the yield curve inverted during the reporting period as short rates rose more than longer term rates, driven by Fed rate hikes. However, our yield curve positioning had little impact on the Fund’s performance over the reporting period. We also continued to position the Fund’s duration (or interest rate sensitivity) moderately short relative to its benchmark throughout the reporting period. Although this had a positive impact on performance in the first half of the reporting period as the short end of the Treasury curve moved higher, much of the benefit was offset in the second half of the reporting period as rates fell across most of the yield curve except for the shortest maturities.
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 negligible impact on performance during the reporting period.
Nuveen Strategic Income Fund
The Fund’s Class A Shares at net asset value (NAV) underperformed both the Bloomberg Barclays U.S. Aggregate Bond Index and the Lipper Multi-Sector Income Funds Classification Average for thesix-month reporting period. Citing strong economic growth and job gains, the Federal Reserve (Fed) raised interest rates two times in September and in December 2018, despite increased market volatility and tightening financial conditions as the reporting period progressed. At the September meeting, the Fed removed the long-standing “accommodative” language from its interest rate positioning statement, marking the end of an era of easy U.S. monetary policy. In December, however, policymakers acknowledged some headwinds and lowered projections for U.S. gross domestic product (GDP) and inflation, while signaling the likelihood for fewer rate hikes in 2019. For thesix-month reporting period as a whole, Treasury yields increased for the shortest maturities at the front end of the yield curve, driven by the Fed rate hikes. However, investors priced in expectations for the Fed to reverse course and ease next year for securities with maturities of one year or more, helping to drive an inversion at the front end of the Treasury yield curve. For example, the yield onone-yearT-bills ended the reporting period at 2.63%, which was above the yield on five-year securities, which ended at 2.51%. After reaching as high as 3.24% in early November 2018, the yield on the10-year Treasury fell sharply to end the reporting period at 2.69%. The broad fixed income market returned 1.65% for the reporting period as measured by the benchmark Bloomberg Barclays U.S. Aggregate Bond Index.
Early in the reporting period, investment grade credit had rebounded from a difficult first half of 2018, posting strong excess returns versus Treasuries. The segment was able to overcome a negative technical backdrop that included sharply declining demand fromnon-U.S. investors as European quantitative easing slowed. However, financial conditions tightened as equity volatility rose sharply in the final months of the reporting period, stock markets declined significantly and spreads moved wider in response to weakening global growth, trade worries, Fed action, lower oil prices and investor outflows from risk assets. In the end, excess returns were negative for investment grade credit versus Treasuries over thesix-month reporting period.
Overall during the reporting period, the mortgage-backed securities (MBS) underperformed duration matched Treasuries. Earlier in the reporting period, the net supply of MBS rose as summer seasonal issuance increased, while demand slowed from banks as well as foreign buyers, due to increased dollar hedging costs. Despite these factors, the segment performed well as demand from money managers increased, while range bound rates and low levels of volatility provided a favorable backdrop for MBS. However, in the
13
Portfolio Managers’ Comments(continued)
final months of 2018, interest rate and broad market volatility proved to be a tough environment for the MBS sector, which underperformed duration matched Treasuries. Soft fundamentals and negative technicals also weighed on the segment.
Securitized sectors posted mixed performance overall for the reporting period as valuations improved for asset-backed securities (ABS) while valuations for commercial mortgage-backed securities (CMBS) declined. Strong job growth and solid corporate earnings provided support for consumer ABS and the commercial real estate market. Within the securitized sectors, investors continued to move down in quality in search of cheaper bonds and higher yields early in the reporting period. However, these sectors were not immune to the volatility that overshadowed the fixed income markets in the final months of the reporting period. Although both the CMBS and ABS sectors posted negative excess returns in the fourth quarter 2018, a strong third quarter 2018 for ABS allowed the segment to produce a positive excess return overall forsix-month reporting period.
In the first few months of the reporting period, high yield credit performed well with spreads reaching cycle lows as economic activity and the supply technical remained highly supportive. Adding to the positive backdrop was a healthy earnings environment and continued supportive financing markets, which helped keep default rates well contained. However, in the final months of the reporting period, the high yield market sold off sharply driven by concerns about growth, Fed rate hikes, trade tensions and questions regarding the length of the credit cycle. Both high yield and leveraged loans saw large investor outflows, accelerating into year end, which drove prices lower despite the positive technical of limited issuance. Nonetheless, credit fundamentals remained solid.
Emerging market (EM) debt was under pressure early on as concerns about tighter global funding conditions and increasing trade tensions took their toll on commodity prices and country-specific events in Argentina and Turkey led to outflows and wider spreads. However, the sector’s performance improved in response to policy actions in key EM countries, including stimulus in China and steps in Argentina and Turkey to respond to market pressures. In addition, the segment was supported by signs from central bankers that the Fed and European Central Bank were likely to be responsive to a deterioration in financial conditions when considering further policy actions. Nonetheless, heading into the end of the reporting period, EM struggled along with other risk sectors in the face of growth fears and trade tensions.
Early in the reporting period, yields rose globally as the Fed continued to raise rates, economic growth continued despite trade dislocations and many central banks signaled comfort with ongoing normalization plans. Although remaining measured, the European Central Bank (ECB) signaled growing confidence in firming inflation. In the U.K., the Bank of England raised interest rates amid greater confidence in the country’s outlook. As the reporting period progressed, global developed market yields fell and yield curves flattened, driven by concerns that slowing global growth and lower oil prices would push down inflation expectations. Global manufacturing and export growth continued to decelerate as tighter financial conditions and trade tensions hurt economic confidence. Brexit uncertainty lingered and France was negatively impacted by the “yellow vest” protests.
The Fund’s performance shortfall entirely occurred in the second half of the reporting period and was driven by our broad overweight to credit sectors, which sold off sharply. In particular, our allocations to the high yield and preferred/contingent capital (CoCo) securities sectors were the largest detractors to performance. Also, the Fund’s overweight to investment grade corporates was a meaningful drag on results. Spreads widened sharply across all credit oriented sectors during the reporting period, particularly driven by heavy investor outflows late in the year as market liquidity declined, magnifying price impacts. High yield spreads widened sharply by 163 basis points over thesix-month reporting period to end the reporting period at 526 basis points over Treasuries, whereas investment grade spreads were 27 basis points wider, ending the reporting period at 143 basis points over Treasuries. The preferred and CoCo segment, in particular, was weighed down by nagging geopolitical headlines concerning Brexit, a fragile agreement between Italy and the European Union (EU) regarding the Italian budget, increasingly tense trade war rhetoric between the U.S. and China, and a handful of idiosyncratic headlines for names like General Electric, General Motors and Pacific Gas & Electric.
Security selection within the investment grade corporate segment had a negligible impact on performance. The positive impact from our overweight to financials more than offset the drag from an overweight to BBB rated issues, which underperformed A rated issues.
Broadernon-corporate sector exposures also did not have much impact on the Fund’s performance, although positions ABS added modestly to returns. The Fund’s positioning innon-dollar bonds was light and the performance impact was minimal. Currency positioning had little impact because we closed out these positions following small gains early in the reporting period.
14
Our defensive interest rate positioning detracted from relative performance as rates declined due to market turmoil in the second half of the reporting period. However, this was partially offset by gains from our positioning along the yield curve.
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 negative impact on performance during the reporting period.
In addition, we entered into credit default swaps as a way to take on broad high yield exposure amid some repositioning in the portfolio. The effect of these activities on performance was negligible during the reporting period.
The Fund also used interest rate swaps as part of an overall portfolio construction strategy to manage portfolio duration. The effect of these activities on performance was positive during the period.
15
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.
16
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. Distributions to shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to Note 6 – Income Tax Information for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of each Fund’s distributions for the reporting period are presented in this report’s Financial Highlights. 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.
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18
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.
19
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 0.95% | (1.08)% | 1.74% | 4.27% | ||||||||||||
Class A Shares at maximum Offering Price | (2.05)% | (4.02)% | 1.12% | 3.96% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.65% | 0.01% | 2.52% | 3.48% | ||||||||||||
Lipper Core Bond Classification Average | 1.01% | (0.69)% | 2.20% | 4.19% | ||||||||||||
Class I Shares | 1.08% | (0.83)% | 2.00% | 4.49% | ||||||||||||
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | 0.57% | (1.83)% | 1.00% | 1.31% | ||||||||||||
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | Since Inception | ||||||||||||||
Class R6 Shares | 1.19% | (0.72)% | 0.83% |
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 C Shares automatically convert to Class A Shares ten years after purchase. 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 | 0.96% | 1.71% | 0.65% | 0.71% | ||||||||||||
Net Expense Ratios | 0.78% | 1.53% | 0.47% | 0.53% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020 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.
20
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 0.38% | (2.05)% | 2.10% | 5.36% | ||||||||||||
Class A Shares at maximum Offering Price | (3.88)% | (6.22)% | 1.22% | 4.90% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.65% | 0.01% | 2.52% | 3.48% | ||||||||||||
Lipper Core Bond Plus Classification Average | 0.88% | (0.90)% | 2.45% | 5.05% | ||||||||||||
Class C Shares | 0.07% | (2.65)% | 1.36% | 4.58% | ||||||||||||
Class R3 Shares | 0.36% | (2.17)% | 1.89% | 5.13% | ||||||||||||
Class I Shares | 0.59% | (1.74)% | 2.36% | 5.64% | ||||||||||||
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | Since Inception | ||||||||||||||
Class R6 Shares | 0.59% | (1.65)% | 1.59% |
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 C Shares automatically convert to Class A Shares ten years after purchase. 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 | 0.90% | 1.65% | 1.15% | 0.59% | 0.65% | |||||||||||||||
Net Expense Ratios | 0.77% | 1.52% | 1.02% | 0.46% | 0.52% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020 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.
21
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (4.57)% | (4.61)% | 1.77% | 9.82% | ||||||||||||
Class A Shares at maximum Offering Price | (9.05)% | (9.16)% | 0.78% | 9.30% | ||||||||||||
Bloomberg Barclays High Yield 2% Issuer Capped Index | (2.24)% | (2.08)% | 3.84% | 11.14% | ||||||||||||
Lipper High Current Yield Funds Classification Average | (2.53)% | (2.84)% | 2.65% | 9.25% | ||||||||||||
Class C Shares | (4.96)% | (5.37)% | 1.01% | 9.05% | ||||||||||||
Class R3 Shares | (4.68)% | (4.91)% | 1.52% | 9.55% | ||||||||||||
Class I Shares | (4.57)% | (4.49)% | 2.02% | 10.12% |
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 C Shares automatically convert to Class A Shares ten years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||
Class A | Class C | Class R3 | Class I | |||||||||||||
Expense Ratios | 1.09% | 1.85% | 1.35% | 0.84% | ||||||||||||
Net Expense Ratios | 1.05% | 1.80% | 1.30% | 0.80% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.75% of the average daily net assets of any class of Fund shares. 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
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (1.23)% | (1.63)% | 1.08% | 3.36% | ||||||||||||
Class A Shares at maximum Offering Price | (5.40)% | (5.80)% | 0.20% | 2.91% | ||||||||||||
Bloomberg Barclays U.S. TIPS Index | (1.24)% | (1.26)% | 1.69% | 3.64% | ||||||||||||
Lipper Inflation-Protected Bond Funds Classification Average | (1.60)% | (1.64)% | 0.84% | 2.85% | ||||||||||||
Class C Shares | (1.67)% | (2.38)% | 0.34% | 2.64% | ||||||||||||
Class R3 Shares | (1.35)% | (1.81)% | 0.77% | 3.03% | ||||||||||||
Class I Shares | (1.19)% | (1.36)% | 1.34% | 3.65% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | (1.08)% | (1.16)% | 0.60% |
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 C Shares automatically convert to Class A Shares ten years after purchase. 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 | 0.97% | 1.72% | 1.22% | 0.48% | 0.72% | |||||||||||||||
Net Expense Ratios | 0.78% | 1.53% | 1.03% | 0.28% | 0.53% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020 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.
23
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | 1.31% | 1.32% | 1.10% | 2.79% | ||||||||||||
Class A Shares at maximum Offering Price | 0.93% | (1.00)% | 0.64% | 2.55% | ||||||||||||
Bloomberg Barclays 1-3 Year Government/Credit Bond Index | 1.52% | 1.60% | 1.03% | 1.52% | ||||||||||||
Lipper Short Investment Grade Debt Funds Classification Average | 0.93% | 1.03% | 1.17% | 2.64% | ||||||||||||
Class I Shares | 1.43% | 1.57% | 1.34% | 3.01% |
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | Since Inception | |||||||||||||
Class C Shares | 0.90% | 0.51% | 0.34% | 0.99% | ||||||||||||
Class R3 Shares | 1.16% | 1.01% | 0.81% | 1.44% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | 1.43% | 1.56% | 1.51% |
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 0.75%, if redeemed within twelve months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten years after purchase. 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 | 0.78% | 1.54% | 1.03% | 0.49% | 0.53% | |||||||||||||||
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, 2020 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.
24
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, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | (0.94)% | (3.36)% | 2.22% | 7.11% | ||||||||||||
Class A Shares at maximum Offering Price | (5.13)% | (7.46)% | 1.33% | 6.65% | ||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 1.65% | 0.01% | 2.52% | 3.48% | ||||||||||||
Lipper Multi-Sector Income Funds Classification Average | (0.54)% | (1.60)% | 2.56% | 6.36% | ||||||||||||
Class C Shares | (1.32)% | (4.04)% | 1.47% | 6.31% | ||||||||||||
Class R3 Shares | (1.15)% | (3.67)% | 1.95% | 6.80% | ||||||||||||
Class I Shares | (0.82)% | (3.13)% | 2.48% | 7.37% |
Cumulative | Average Annual | |||||||||||
6-Month | 1-Year | Since Inception | ||||||||||
Class R6 Shares | (0.82)% | (3.03)% | 1.69% |
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 C Shares automatically convert to Class A Shares ten years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Gross Expense Ratios | 0.93% | 1.68% | 1.18% | 0.60% | 0.68% | |||||||||||||||
Net Expense Ratios | 0.83% | 1.58% | 1.08% | 0.50% | 0.58% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2020, 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.
25
Yields as of December 31, 2018
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC30-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 SEC30-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. If the fund did not receive a fee waiver/expense reimbursement during the period under its most recent agreement, subsidized and unsubsidized yields will equal. 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 SEC30-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 | 2.72% | 2.04% | 3.06% | 3.07% | ||||||||||||
SEC 30-Day Yield-Subsidized | 3.02% | 2.39% | 3.39% | 3.36% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.81% | 2.16% | 3.18% | 3.14% |
Nuveen Core Plus Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 2.73% | 2.06% | 2.61% | 3.08% | 3.09% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 3.35% | 2.74% | 3.25% | 3.79% | 3.75% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 3.22% | 2.61% | 3.11% | 3.67% | 3.61% |
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||
Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 6.60% | 6.08% | 6.62% | 7.18% | ||||||||||||
SEC30-Day Yield-Subsidized | 7.32% | 6.94% | 7.45% | 7.94% | ||||||||||||
SEC30-Day Yield-Unsubsidized | 7.31% | 6.91% | 7.42% | 7.92% |
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 2.10% | 1.43% | 1.93% | 2.43% | 2.40% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 2.48% | 1.85% | 2.34% | 3.02% | 2.84% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.36% | 1.85% | 2.20% | 2.90% | 2.66% |
26
Nuveen Short Term Bond Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 2.04% | 1.28% | 1.84% | 2.33% | 2.33% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 2.54% | 1.85% | 2.35% | 2.87% | 2.84% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.46% | 1.77% | 2.26% | 2.80% | 2.76% |
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||
Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 3.28% | 2.80% | 3.32% | 3.81% | 3.82% | |||||||||||||||
SEC30-Day Yield-Subsidized | 4.20% | 3.63% | 4.13% | 4.73% | 4.63% | |||||||||||||||
SEC30-Day Yield-Unsubsidized | 4.06% | 3.49% | 3.99% | 4.59% | 4.50% |
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.
27
Holding Summaries as of December 31, 2018
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 | 49.2% | |||
Asset-Backed and Mortgage-Backed Securities | 38.1% | |||
U.S. Government and Agency Obligations | 9.0% | |||
Municipal Bonds | 0.8% | |||
$1,000 Par (or similar) | 0.5% | |||
Money Market Funds | 1.9% | |||
Other Assets Less Liabilities | 0.5% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Diversified Financial Services | 14.4% | |||
Capital Markets | 12.0% | |||
Insurance | 8.4% | |||
Banks | 8.0% | |||
Media | 5.7% | |||
Diversified Telecommunication Services | 4.6% | |||
Food & Staples Retailing | 3.4% | |||
Biotechnology | 2.8% | |||
Consumer Finance | 2.7% | |||
Hotels, Restaurants & Leisure | 2.6% | |||
Energy Equipment & Services | 2.5% | |||
Semiconductors & Semiconductor Equipment | 2.2% | |||
Oil, Gas & Consumable Fuels | 2.2% | |||
Health Care Providers & Services | 2.0% | |||
Automobiles | 1.9% | |||
Machinery | 1.9% | |||
Equity Real Estate Investment Trusts | 1.7% | |||
Chemicals | 1.7% | |||
Other | 19.3% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 28.6% | |||
AAA | 12.1% | |||
AA | 9.7% | |||
A | 28.5% | |||
BBB | 21.1% | |||
Total | 100% |
28
Nuveen Core Plus Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 41.4% | |||
Asset-Backed and Mortgage-Backed Securities | 40.9% | |||
$1,000 Par (or similar) | 5.4% | |||
U.S. Government and Agency Obligations | 4.7% | |||
Sovereign Debt | 3.3% | |||
Contingent Capital Securities | 2.6% | |||
Municipal Bonds | 0.7% | |||
Investments Purchased with Collateral from Securities Lending | 0.4% | |||
Money Market Funds | 5.7% | |||
Other Assets Less Liabilities | (5.1)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Capital Markets | 12.8% | |||
Diversified Financial Services | 11.5% | |||
Banks | 8.2% | |||
Insurance | 6.5% | |||
Oil, Gas & Consumable Fuels | 6.4% | |||
Diversified Telecommunication Services | 4.1% | |||
Energy Equipment & Services | 3.3% | |||
Aerospace & Defense | 3.1% | |||
Media | 3.0% | |||
Food & Staples Retailing | 2.5% | |||
Specialty Retail | 2.3% | |||
Equity Real Estate Investment Trusts | 2.3% | |||
Chemicals | 2.2% | |||
Beverages | 2.2% | |||
Food Products | 2.1% | |||
Consumer Finance | 2.0% | |||
Machinery | 1.9% | |||
Wireless Telecommunication Services | 1.9% | |||
Airlines | 1.8% | |||
Health Care Providers & Services | 1.7% | |||
Other | 18.2% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 23.9% | |||
AAA | 16.8% | |||
AA | 3.7% | |||
A | 21.6% | |||
BBB | 26.2% | |||
BB or Lower | 7.8% | |||
Total | 100% |
29
Holding Summariesas of December 31, 2018 (continued)
Nuveen High Income Bond Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 85.8% | |||
$1,000 Par (or similar) | 3.1% | |||
Contingent Capital Securities | 2.8% | |||
Variable Rate Senior Loan | 2.7% | |||
$25 Par (or similar) Retail | 0.9% | |||
Sovereign Debt | 0.4% | |||
Common Stocks | 0.0% | |||
Warrants | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 10.0% | |||
Money Market Funds | 2.0% | |||
Other Assets Less Liabilities | (7.7)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Metals & Mining | 11.4% | |||
Oil, Gas & Consumable Fuels | 9.0% | |||
Chemicals | 6.6% | |||
Media | 6.3% | |||
Commercial Services & Supplies | 5.0% | |||
Diversified Telecommunication Services | 5.0% | |||
Diversified Financial Services | 4.4% | |||
Specialty Retail | 4.1% | |||
Food & Staples Retailing | 4.0% | |||
Electric Utilities | 3.8% | |||
Energy Equipment & Services | 3.8% | |||
Wireless Telecommunication Services | 3.7% | |||
Hotels, Restaurants & Leisure | 3.0% | |||
Consumer Finance | 2.5% | |||
Capital Markets | 2.4% | |||
Household Durables | 2.2% | |||
Food Products | 1.7% | |||
Pharmaceuticals | 1.7% | |||
Other | 19.4% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
U.S. Treasury/Agency | 0.6% | |||
BBB | 3.8% | |||
BB or Lower | 94.4% | |||
N/R (not rated) | 1.2% | |||
Total | 100% |
30
Nuveen Inflation Protected Securities Fund
Fund Allocation
(% of net assets)
U.S. Government and Agency | 87.2% | |||
Asset-Backed and Mortgage-Backed Securities | 10.2% | |||
Corporate Bonds | 1.6% | |||
Sovereign Debt | 0.3% | |||
Investments Purchased with Collateral from Securities Lending | 0.1% | |||
Money Market Funds | 0.5% | |||
Other Assets Less Liabilities | 0.1% | |||
Net Assets | 100% |
Portfolio Credit Quality
(% of total long-term
investments)
U.S. Treasury/Agency | 87.8% | |||
AAA | 3.8% | |||
AA | 0.6% | |||
A | 0.4% | |||
BBB | 6.5% | |||
BB or Lower | 0.9% | |||
Total | 100% |
31
Holding Summariesas of December 31, 2018 (continued)
Nuveen Short Term Bond Fund
Fund Allocation
(% of net assets)
Asset-Backed and Mortgage-Backed Securities | 46.3% | |||
Corporate Bonds | 37.1% | |||
U.S. Government and Agency Obligations | 13.9% | |||
Investments Purchased with Collateral from Securities Lending | 0.0% | |||
Money Market Funds | 3.2% | |||
Other Assets Less Liabilities | (0.5)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Diversified Financial Services | 14.2% | |||
Banks | 13.8% | |||
Capital Markets | 9.4% | |||
Insurance | 8.0% | |||
Automobiles | 4.7% | |||
Consumer Finance | 4.6% | |||
Diversified Telecommunication Services | 4.5% | |||
Food Products | 3.4% | |||
Media | 3.3% | |||
Wireless Telecommunication Services | 3.2% | |||
Oil, Gas & Consumable Fuels | 2.8% | |||
Electric Utilities | 2.3% | |||
Biotechnology | 2.2% | |||
Hotels, Restaurants & Leisure | 2.0% | |||
Health Care Providers & Services | 2.0% | |||
Other | 19.6% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term investments)
U.S. Treasury/Agency | 15.9% | |||
AAA | 31.5% | |||
AA | 7.7% | |||
A | 23.7% | |||
BBB | 18.4% | |||
BB or Lower | 1.6% | |||
NIR (not rated) | 1.2% | |||
Total | 100% |
32
Nuveen Strategic Income Fund
Fund Allocation
(% of net assets)
Corporate Bonds | 54.0% | |||
Asset-Backed and Mortgage-Backed Securities | 20.9% | |||
$1,000 Par (or similar) Institutional Preferred | 9.6% | |||
Contingent Capital Securities | 7.0% | |||
Sovereign Debt | 5.2% | |||
Variable Rate Senior Loan Interests | 0.8% | |||
U.S. Government and Agency Obligations | 0.8% | |||
$25 Par (or similar) Retail Preferred | 0.6% | |||
Municipal Bonds | 0.3% | |||
Common Stocks | 0.0% | |||
Investments Purchased with Collateral from Securities Lending | 1.3% | |||
Money Market Funds | 0.8% | |||
Other Assets Less Liabilities | (1.3)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
Capital Markets | 12.1% | |||
Diversified Financial Services | 10.6% | |||
Oil, Gas & Consumable Fuels | 7.1% | |||
Insurance | 6.7% | |||
Banks | 6.4% | |||
Diversified Telecommunication Services | 4.0% | |||
Media | 3.0% | |||
Consumer Finance | 2.7% | |||
Aerospace & Defense | 2.7% | |||
Energy Equipment & Services | 2.6% | |||
Food & Staples Retailing | 2.4% | |||
Chemicals | 2.3% | |||
Commercial Services & Supplies | 2.2% | |||
Airlines | 2.1% | |||
Metals & Mining | 2.0% | |||
Beverages | 1.9% | |||
Specialty Retail | 1.8% | |||
Household Durables | 1.7% | |||
Semiconductors & Semiconductor Equipment | 1.6% | |||
Food Products | 1.5% | |||
Wireless Telecommunication Services | 1.5% | |||
Paper & Forest Products | 1.4% | |||
Other | 19.7% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
U.S. Treasury/Agency | 3.8% | |||
AAA | 12.4% | |||
AA | 2.0% | |||
A | 22.5% | |||
BBB | 36.9% | |||
BB or Lower | 22.4% | |||
Total | 100% |
33
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, includingup-front andback-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, 2018.
The beginning of the period for the funds is July 1, 2018.
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 | $ | 1,009.50 | $ | 1,005.70 | $ | 1,011.90 | $ | 1,010.80 | ||||||||
Expenses Incurred During the Period | $ | 3.95 | $ | 7.73 | $ | 2.38 | $ | 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 | $ | 1,022.84 | $ | 1,022.53 | ||||||||
Expenses Incurred During the Period | $ | 3.97 | $ | 7.78 | $ | 2.40 | $ | 2.70 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.78%, 1.53%, 0.47% 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 theone-half year period).
34
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 | $ | 1,003.80 | $ | 1,000.70 | $ | 1,003.60 | $ | 1,005.90 | $ | 1,005.90 | ||||||||||
Expenses Incurred During the Period | $ | 3.89 | $ | 7.67 | $ | 5.15 | $ | 2.33 | $ | 2.63 | ||||||||||
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 theone-half year period).
Nuveen High Income Bond Fund
Share Class | ||||||||||||||||
A Shares | C Shares | R3 Shares | I Shares | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 954.30 | $ | 950.40 | $ | 953.20 | $ | 954.30 | ||||||||
Expenses Incurred During the Period | $ | 4.93 | $ | 8.60 | $ | 6.15 | $ | 3.69 | ||||||||
Hypothetical Performance | ||||||||||||||||
Beginning Account Value | $ | 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 | ||||||||
Expenses Incurred During the Period | $ | 5.09 | $ | 8.89 | $ | 6.36 | $ | 3.82 |
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 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).
Nuveen Inflation Protected Securities Fund
Share Class | ||||||||||||||||||||
Class A | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 987.70 | $ | 983.30 | $ | 986.50 | $ | 989.20 | $ | 988.10 | ||||||||||
Expenses Incurred During the Period | $ | 3.91 | $ | 7.65 | $ | 5.16 | $ | 1.50 | $ | 2.66 | ||||||||||
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 | $ | 1,023.69 | $ | 1,022.53 | ||||||||||
Expenses Incurred During the Period | $ | 3.97 | $ | 7.78 | $ | 5.24 | $ | 1.53 | $ | 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%, 0.30% 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 theone-half year period).
35
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 | $ | 1,013.10 | $ | 1,009.00 | $ | 1,011.60 | $ | 1,014.30 | $ | 1,014.30 | ||||||||||
Expenses Incurred During the Period | $ | 3.65 | $ | 7.44 | $ | 4.92 | $ | 2.13 | $ | 2.39 | ||||||||||
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 theone-half year period).
Nuveen Strategic Income Fund
Share Class | ||||||||||||||||||||
A Shares | C Shares | R3 Shares | R6 Shares | I Shares | ||||||||||||||||
Actual Performance | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 990.60 | $ | 986.80 | $ | 988.50 | $ | 991.80 | $ | 991.80 | ||||||||||
Expenses Incurred During the Period | $ | 4.21 | $ | 7.96 | $ | 5.46 | $ | 2.51 | $ | 2.96 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,020.97 | $ | 1,017.19 | $ | 1,019.71 | $ | 1,022.68 | $ | 1,022.23 | ||||||||||
Expenses Incurred During the Period | $ | 4.28 | $ | 8.08 | $ | 5.55 | $ | 2.55 | $ | 3.01 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.84%, 1.59%, 1.09%, 0.50%, 0.59% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).
36
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 97.7% | ||||||||||||||||||||
CORPORATE BONDS – 49.2% | ||||||||||||||||||||
Aerospace & Defense – 0.4% | ||||||||||||||||||||
$ | 525 | Rockwell Collins Inc. | 3.500% | 3/15/27 | BBB+ | $ | 493,081 | |||||||||||||
Airlines – 0.2% | ||||||||||||||||||||
348 | American Airlines Inc., Pass-Through Trust2016-1A | 3.575% | 1/15/28 | AA+ | 341,939 | |||||||||||||||
Auto Components – 0.3% | ||||||||||||||||||||
355 | Lear Corporation | 5.375% | 3/15/24 | BBB– | 365,183 | |||||||||||||||
Automobiles – 0.9% | ||||||||||||||||||||
885 | BMW US Capital LLC, 144A | 3.450% | 4/12/23 | A+ | 878,516 | |||||||||||||||
325 | General Motors Corporation | 4.000% | 4/01/25 | BBB | 303,802 | |||||||||||||||
1,210 | Total Automobiles | 1,182,318 | ||||||||||||||||||
Banks – 3.9% | ||||||||||||||||||||
460 | Barclays PLC | 3.650% | 3/16/25 | A | 424,000 | |||||||||||||||
525 | BNP Paribas SA, 144A | 4.375% | 5/12/26 | A | 505,465 | |||||||||||||||
807 | Fifth Third Bancorp. | 3.500% | 3/15/22 | A– | 808,387 | |||||||||||||||
360 | Huntington Bancshares Inc./OH | 4.000% | 5/15/25 | A– | 362,037 | |||||||||||||||
400 | ING Groep N.V | 3.950% | 3/29/27 | A+ | 384,025 | |||||||||||||||
810 | Santander UK PLC | 2.125% | 11/03/20 | Aa3 | 790,957 | |||||||||||||||
570 | SunTrust Banks Inc. | 2.450% | 8/01/22 | A– | 549,486 | |||||||||||||||
1,125 | Wells Fargo & Company | 3.550% | 9/29/25 | A+ | 1,090,490 | |||||||||||||||
5,057 | Total Banks | 4,914,847 | ||||||||||||||||||
Beverages – 0.5% | ||||||||||||||||||||
315 | Anheuser Busch InBev Financial Incorporated, Fixed Rate Note, Series 2016 | 3.650% | 2/01/26 | A– | 297,484 | |||||||||||||||
420 | Dr. Pepper Snapple Group Inc. | 2.550% | 9/15/26 | BBB | 361,399 | |||||||||||||||
735 | Total Beverages | 658,883 | ||||||||||||||||||
Biotechnology – 1.4% | ||||||||||||||||||||
500 | Baxalta, Inc. | 4.000% | 6/23/25 | BBB– | 489,046 | |||||||||||||||
630 | Biogen Inc. | 3.625% | 9/15/22 | A– | 631,618 | |||||||||||||||
595 | Celgene Corporation, Convertible Notes | 3.625% | 5/15/24 | BBB+ | 580,267 | |||||||||||||||
1,725 | Total Biotechnology | 1,700,931 | ||||||||||||||||||
Capital Markets – 5.9% | ||||||||||||||||||||
665 | Charles Schwab Corporation | 3.000% | 3/10/25 | A | 642,871 | |||||||||||||||
1,280 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 1,340,148 | |||||||||||||||
800 | Goldman Sachs Group, Inc. | 6.750% | 10/01/37 | A– | 904,313 | |||||||||||||||
365 | Jefferies Group LLC | 4.850% | 1/15/27 | BBB | 348,968 |
37
Nuveen Core Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Capital Markets(continued) | ||||||||||||||||||||
$ | 730 | Lazard Group LLC | 3.625% | 3/01/27 | A– | $ | 686,924 | |||||||||||||
1,740 | Morgan Stanley | 4.000% | 7/23/25 | A | 1,717,364 | |||||||||||||||
685 | Morgan Stanley | 3.950% | 4/23/27 | A– | 646,166 | |||||||||||||||
1,105 | State Street Corporation | 3.300% | 12/16/24 | AA– | 1,094,400 | |||||||||||||||
7,370 | Total Capital Markets | 7,381,154 | ||||||||||||||||||
Chemicals – 0.8% | ||||||||||||||||||||
500 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 464,710 | |||||||||||||||
550 | LYB International Finance BV | 4.000% | 7/15/23 | BBB+ | 552,602 | |||||||||||||||
1,050 | Total Chemicals | 1,017,312 | ||||||||||||||||||
Commercial Services & Supplies – 0.3% | ||||||||||||||||||||
430 | AerCap Ireland Capital Limited / AerCap Global Aviation Trust | 3.950% | 2/01/22 | BBB– | 422,273 | |||||||||||||||
Consumer Finance – 1.3% | ||||||||||||||||||||
490 | Capital One Financial Corporation. | 3.750% | 3/09/27 | A– | 455,355 | |||||||||||||||
545 | Discover Financial Services | 5.200% | 4/27/22 | BBB+ | 565,376 | |||||||||||||||
640 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | 613,833 | |||||||||||||||
1,675 | Total Consumer Finance | 1,634,564 | ||||||||||||||||||
Containers & Packaging – 0.4% | ||||||||||||||||||||
480 | Packaging Corporation of America | 3.650% | 9/15/24 | BBB | 471,639 | |||||||||||||||
Diversified Financial Services – 7.1% | ||||||||||||||||||||
710 | American Express Company | 2.650% | 12/02/22 | A | 686,817 | |||||||||||||||
157 | Bank of America Corporation | 4.000% | 4/01/24 | A+ | 157,859 | |||||||||||||||
490 | Bank of America Corporation | 3.875% | 8/01/25 | A+ | 484,957 | |||||||||||||||
1,000 | Bank of America Corporation | 4.450% | 3/03/26 | A | 989,420 | |||||||||||||||
140 | Bank of America Corporation | 3.419% | 12/20/28 | A+ | 130,859 | |||||||||||||||
990 | Berkshire Hathaway Inc. | 3.125% | 3/15/26 | AA | 960,027 | |||||||||||||||
645 | Citigroup Inc. | 4.500% | 1/14/22 | A | 658,991 | |||||||||||||||
650 | Citigroup Inc. | 3.300% | 4/27/25 | A | 617,548 | |||||||||||||||
365 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 351,173 | |||||||||||||||
995 | Cooperatieve Rabobank UA | 3.875% | 2/08/22 | Aa3 | 1,005,951 | |||||||||||||||
635 | GE Capital International Funding Co Unlimited Co | 4.418% | 11/15/35 | BBB+ | 534,230 | |||||||||||||||
505 | JPMorgan Chase & Company | 3.200% | 1/25/23 | AA– | 497,614 | |||||||||||||||
695 | JPMorgan Chase & Company | 3.875% | 9/10/24 | A+ | 685,160 | |||||||||||||||
700 | JPMorgan Chase & Company | 4.260% | 2/22/48 | AA– | 651,973 | |||||||||||||||
500 | Voya Financial Inc. | 3.650% | 6/15/26 | BBB | 472,904 | |||||||||||||||
9,177 | Total Diversified Financial Services | 8,885,483 | ||||||||||||||||||
Diversified Telecommunication Services – 2.3% | ||||||||||||||||||||
360 | AT&T, Inc. | 3.800% | 3/15/22 | A– | 361,553 | |||||||||||||||
715 | AT&T, Inc. | 3.400% | 5/15/25 | A– | 672,111 |
38
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Diversified Telecommunication Services(continued) | ||||||||||||||||||||
$ | 365 | AT&T, Inc. | 4.750% | 5/15/46 | A– | $ | 324,858 | |||||||||||||
340 | Occidental Petroleum Corp | 3.400% | 4/15/26 | A | 332,820 | |||||||||||||||
525 | Telefonica Emisiones SAU | 4.103% | 3/08/27 | BBB | 506,226 | |||||||||||||||
750 | Verizon Communications | 4.125% | 8/15/46 | A– | 662,622 | |||||||||||||||
3,055 | Total Diversified Telecommunication Services | 2,860,190 | ||||||||||||||||||
Energy Equipment & Services – 1.3% | ||||||||||||||||||||
335 | BP Capital Markets PLC | 2.520% | 9/19/22 | A1 | 323,948 | |||||||||||||||
565 | Chevron Corporation | 2.355% | 12/05/22 | AA | 547,109 | |||||||||||||||
590 | HSBC Holdings PLC | 6.800% | 6/01/38 | A+ | 697,463 | |||||||||||||||
1,490 | Total Energy Equipment & Services | 1,568,520 | ||||||||||||||||||
Equity Real Estate Investment Trusts – 0.8% | ||||||||||||||||||||
635 | American Tower Company | 5.000% | 2/15/24 | BBB | 656,824 | |||||||||||||||
380 | Crown Castle International Corporation | 3.700% | 6/15/26 | BBB | 362,684 | |||||||||||||||
1,015 | Total Equity Real Estate Investment Trusts | 1,019,508 | ||||||||||||||||||
Food & Staples Retailing – 1.7% | ||||||||||||||||||||
930 | CVS Health Corporation | 3.875% | 7/20/25 | BBB | 906,690 | |||||||||||||||
730 | Sysco Corporation | 3.750% | 10/01/25 | A3 | 712,166 | |||||||||||||||
515 | Walgreen Company | 3.100% | 9/15/22 | BBB | 502,357 | |||||||||||||||
2,175 | Total Food & Staples Retailing | 2,121,213 | ||||||||||||||||||
Food Products – 0.7% | ||||||||||||||||||||
500 | Bunge Limited Finance Company | 3.250% | 8/15/26 | BBB | 438,311 | |||||||||||||||
525 | Kraft Heinz Foods Co | 3.000% | 6/01/26 | BBB | 468,582 | |||||||||||||||
1,025 | Total Food Products | 906,893 | ||||||||||||||||||
Health Care Equipment & Supplies – 0.5% | ||||||||||||||||||||
630 | Anthem Inc. | 3.125% | 5/15/22 | A | 620,713 | |||||||||||||||
Health Care Providers & Services – 1.0% | ||||||||||||||||||||
1,215 | UnitedHealth Group Inc. | 2.875% | 3/15/22 | A+ | 1,205,283 | |||||||||||||||
Hotels, Restaurants & Leisure – 1.3% | ||||||||||||||||||||
1,025 | Hyatt Hotels Corporation | 3.375% | 7/15/23 | BBB | 1,008,928 | |||||||||||||||
590 | Spectra Energy Partners LP | 4.750% | 3/15/24 | BBB+ | 606,290 | |||||||||||||||
1,615 | Total Hotels, Restaurants & Leisure | 1,615,218 | ||||||||||||||||||
Household Durables – 0.4% | ||||||||||||||||||||
545 | Newell Brands Inc. | 4.200% | 4/01/26 | BBB– | 532,896 | |||||||||||||||
Insurance – 4.1% | ||||||||||||||||||||
131 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 158,106 | |||||||||||||||
620 | American International Group, Inc. | 3.750% | 7/10/25 | BBB+ | 593,904 | |||||||||||||||
375 | CNA Financial Corporation | 3.450% | 8/15/27 | BBB+ | 349,100 | |||||||||||||||
750 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 764,519 |
39
Nuveen Core Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Insurance(continued) | ||||||||||||||||||||
$ | 600 | MetLife Inc. | 3.000% | 3/01/25 | A– | $ | 574,915 | |||||||||||||
940 | Prudential Financial Inc. | 3.500% | 5/15/24 | A | 945,090 | |||||||||||||||
525 | Swiss Re Treasury US Corporation, 144A | 4.250% | 12/06/42 | AA– | 512,242 | |||||||||||||||
465 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 456,118 | |||||||||||||||
435 | Unum Group | 4.000% | 3/15/24 | BBB | 431,735 | |||||||||||||||
365 | Willis North America, Inc. | 3.600% | 5/15/24 | BBB | 356,346 | |||||||||||||||
5,206 | Total Insurance | 5,142,075 | ||||||||||||||||||
Internet and Direct Marketing Retail – 0.5% | ||||||||||||||||||||
560 | Amazon.com Incorporated. | 3.800% | 12/05/24 | AA– | 573,112 | |||||||||||||||
Internet Software & Services – 0.5% | ||||||||||||||||||||
655 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 657,701 | |||||||||||||||
IT Services – 0.8% | ||||||||||||||||||||
955 | Visa Inc. | 3.150% | 12/14/25 | AA– | 938,923 | |||||||||||||||
Machinery – 0.9% | ||||||||||||||||||||
375 | CNH Industrial NV | 3.850% | 11/15/27 | BBB | 341,284 | |||||||||||||||
830 | Ingersoll-Rand Luxembourg Finance SA | 3.550% | 11/01/24 | BBB | 822,218 | |||||||||||||||
1,205 | Total Machinery | 1,163,502 | ||||||||||||||||||
Media – 2.8% | ||||||||||||||||||||
605 | 21st Century Fox America Inc. | 4.000% | 10/01/23 | BBB+ | 620,628 | |||||||||||||||
385 | Charter Communications Operating LLC / Charter Communications Operating Capital | 4.200% | 3/15/28 | BBB– | 360,736 | |||||||||||||||
435 | Cox Communications Inc., 144A | 3.350% | 9/15/26 | BBB+ | 401,541 | |||||||||||||||
660 | Discovery Communications LLC | 3.800% | 3/13/24 | BBB– | 643,806 | |||||||||||||||
885 | NBCUniversal Media LLC | 6.400% | 4/30/40 | A– | 1,041,717 | |||||||||||||||
520 | Viacom Inc. | 4.375% | 3/15/43 | BBB | 412,731 | |||||||||||||||
3,490 | Total Media | 3,481,159 | ||||||||||||||||||
Metals & Mining – 0.4% | ||||||||||||||||||||
495 | Nucor Corporation | 4.000% | 8/01/23 | A– | 500,668 | |||||||||||||||
Multi-Utilities – 0.3% | ||||||||||||||||||||
415 | Sempra Energy | 3.400% | 2/01/28 | BBB+ | 379,412 | |||||||||||||||
Oil, Gas & Consumable Fuels – 1.1% | ||||||||||||||||||||
550 | EOG Resources Inc. | 4.100% | 2/01/21 | A– | 557,986 | |||||||||||||||
270 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 286,005 | |||||||||||||||
540 | Valero Energy Corporation | 3.400% | 9/15/26 | BBB | 494,838 | |||||||||||||||
1,360 | Total Oil, Gas & Consumable Fuels | 1,338,829 | ||||||||||||||||||
Pharmaceuticals – 0.8% | ||||||||||||||||||||
995 | Merck & Company Inc. | 2.750% | 2/10/25 | AA | 962,970 |
40
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Road & Rail – 0.7% | ||||||||||||||||||||
$ | 895 | Burlington Northern Santa Fe, LLC | 3.400% | 9/01/24 | A+ | $ | 895,995 | |||||||||||||
Semiconductors & Semiconductor Equipment – 1.1% | ||||||||||||||||||||
740 | Applied Materials Inc. | 4.300% | 6/15/21 | A– | 761,775 | |||||||||||||||
630 | Intel Corporation | 3.150% | 5/11/27 | A+ | 612,185 | |||||||||||||||
1,370 | Total Semiconductors & Semiconductor Equipment | 1,373,960 | ||||||||||||||||||
Specialty Retail – 0.6% | ||||||||||||||||||||
520 | Home Depot, Inc. | 2.625% | 6/01/22 | A | 514,522 | |||||||||||||||
245 | Lowes Companies, Inc. | 3.100% | 5/03/27 | BBB+ | 223,993 | |||||||||||||||
765 | Total Specialty Retail | 738,515 | ||||||||||||||||||
Tobacco – 0.4% | ||||||||||||||||||||
520 | Reynolds American Inc. | 3.250% | 11/01/22 | BBB+ | 504,572 | |||||||||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||||||||||||
510 | Rogers Communications Inc. | 3.625% | 12/15/25 | BBB+ | 497,472 | |||||||||||||||
475 | Vodafone Group PLC | 4.375% | 5/30/28 | BBB+ | 461,057 | |||||||||||||||
985 | Total Wireless Telecommunication Services | 958,529 | ||||||||||||||||||
$ | 62,773 | Total Corporate Bonds (cost $62,961,316) | 61,529,963 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 38.1% | ||||||||||||||||||||
$ | 640 | American Credit Acceptance Receivables Trust2016-1A, Series ACAR2016-1A C, 144A | 5.550% | 6/13/22 | AA | $ | 647,025 | |||||||||||||
851 | American Homes 4 Rent 2014-SFR2 Trust, Series AH4R2014-SFR2 A, 144A | 3.786% | 10/17/36 | Aaa | 858,260 | |||||||||||||||
500 | American Homes 4 Rent 2015-SFR2 Trust, Series AH4R2015-SFR2 D, 144A | 5.036% | 10/17/45 | Aa3 | 534,167 | |||||||||||||||
600 | Americold 2010 LLC, Series ACRE 2010-ARTA B, 144A | 6.031% | 1/17/29 | AA+ | 630,620 | |||||||||||||||
416 | Avid Automobile Receivables Trust2018-1, Series AVID2018-1 A, 144A | 2.840% | 8/15/23 | A | 413,424 | |||||||||||||||
260 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM 2015-UBS7 C | 4.362% | 9/17/48 | A– | 254,445 | |||||||||||||||
165 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM 2015-UBS7 D | 3.167% | 9/17/48 | BBB- | 136,500 | |||||||||||||||
650 | BX TRUST BX 2018-MCSF A, 144A,(1-Month LIBOR reference rate + 0.577% spread), (3) | 3.032% | 4/16/35 | AAA | 637,429 | |||||||||||||||
277 | Carnow Auto Receivables Trust2017-1, Series CNART2017-1A A, 144A | 2.920% | 9/15/22 | A | 276,160 | |||||||||||||||
725 | Cold Storage Trust, Commercial Mortgage Backed Securities, Series 2017-ICE3, 144A,(1-Month LIBOR reference rate + 1.000% spread), (3) | 3.455% | 4/15/36 | AAA | 712,038 | |||||||||||||||
625 | COMM 2015-CCRE26 Mortgage Trust, Series COMM 2015-CR26 C | 4.483% | 10/10/48 | A– | 617,739 | |||||||||||||||
425 | Countrywide Asset-Backed Securities Inc. , Asset-Backed Certificates Series2003-BC3,(1-Month LIBOR reference rate + 0.620% spread), (3) | 3.126% | 9/25/33 | A | 414,437 | |||||||||||||||
583 | Domino’s Pizza Master Issuer LLC, 144A,(3-Month LIBOR reference rate + 1.250%), (3) | 3.740% | 7/25/47 | BBB+ | 582,077 | |||||||||||||||
472 | Fannie Mae Mortgage Pool FN 725205 | 5.000% | 3/01/34 | N/R | 502,327 | |||||||||||||||
908 | Fannie Mae Mortgage Pool FN 890310 | 4.500% | 12/01/40 | N/R | 951,394 | |||||||||||||||
738 | Fannie Mae Mortgage Pool FN 960605 | 5.000% | 8/01/37 | N/R | 783,812 |
41
Nuveen Core Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 1,463 | Fannie Mae Mortgage Pool FN AB2085 | 4.000% | 1/01/41 | N/R | $ | 1,504,519 | |||||||||||||
2,179 | Fannie Mae Mortgage Pool FN AB9659 | 3.000% | 6/01/43 | N/R | 2,144,208 | |||||||||||||||
907 | Fannie Mae Mortgage Pool FN AD1593 | 4.500% | 2/01/40 | N/R | 950,548 | |||||||||||||||
1,221 | Fannie Mae Mortgage Pool FN AE0217 | 4.500% | 8/01/40 | N/R | 1,279,276 | |||||||||||||||
1,212 | Fannie Mae Mortgage Pool FN AE0981 | 3.500% | 3/01/41 | N/R | 1,221,463 | |||||||||||||||
564 | Fannie Mae Mortgage Pool FN AH3804 | 4.000% | 2/01/41 | N/R | 580,076 | |||||||||||||||
1,512 | Fannie Mae Mortgage Pool FN AH5575 | 4.000% | 2/01/41 | N/R | 1,555,066 | |||||||||||||||
1,212 | Fannie Mae Mortgage Pool FN AH8954 | 4.000% | 4/01/41 | N/R | 1,246,468 | |||||||||||||||
693 | Fannie Mae Mortgage Pool FN AL0160 | 4.500% | 5/01/41 | N/R | 726,333 | |||||||||||||||
1,332 | Fannie Mae Mortgage Pool FN AL0215 | 4.500% | 4/01/41 | N/R | 1,395,734 | |||||||||||||||
1,241 | Fannie Mae Mortgage Pool FN AS6398 | 3.500% | 12/01/45 | N/R | 1,246,020 | |||||||||||||||
1,014 | Fannie Mae Mortgage Pool FN AU3353 | 3.000% | 8/01/43 | N/R | 997,238 | |||||||||||||||
1,483 | Fannie Mae Mortgage Pool FN BH7626 | 4.000% | 8/01/47 | N/R | 1,512,692 | |||||||||||||||
1,227 | Fannie Mae Mortgage Pool FN BM3257 | 3.500% | 11/01/32 | N/R | 1,242,300 | |||||||||||||||
1,074 | Fannie Mae Mortgage Pool FN MA1028 | 4.000% | 4/01/42 | N/R | 1,105,172 | |||||||||||||||
1,290 | Fannie Mae Mortgage Pool FNCL 4 1/19, (WI/DD) | 4.000% | TBA | N/R | 1,315,423 | |||||||||||||||
1 | Fannie Mae REMICS, Series FNR1990-89 K | 6.500% | 7/25/20 | N/R | 808 | |||||||||||||||
451 | Flagstar Mortgage Trust2017-2, Series FSMT2017-2 A5, 144A | 3.500% | 10/25/47 | Aaa | 448,325 | |||||||||||||||
507 | FOCUS Brands Funding LLC, Series FOCUS2017-1A A2II, 144A | 5.093% | 4/30/47 | BBB | 514,083 | |||||||||||||||
482 | Freddie Mac Gold Pool G05852 | 5.500% | 3/01/39 | Aaa | 513,981 | |||||||||||||||
424 | Freddie Mac Gold Pool G08687 | 3.500% | 1/01/46 | Aaa | 425,835 | |||||||||||||||
1 | Freddie Mac REMICS, Series FHR 1167 E | 7.500% | 11/15/21 | Aaa | 1,484 | |||||||||||||||
2 | Freddie Mac REMICS, Series FHR 1286 A | 6.000% | 5/15/22 | Aaa | 2,421 | |||||||||||||||
610 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2018-SPI2 M1, 144A | 3.820% | 5/25/48 | BBB– | 607,659 | |||||||||||||||
1,821 | Ginnie Mae I Pool AA5391 | 3.500% | 6/15/42 | Aaa | 1,841,427 | |||||||||||||||
641 | Ginnie Mae II Pool MA2521 | 3.500% | 1/20/45 | Aaa | 646,987 | |||||||||||||||
182 | GLS Auto Receivables Trust2017-1, Series GCAR2017-1A A2, 144A | 2.670% | 4/15/21 | A | 181,083 | |||||||||||||||
780 | GS Mortgage Securities Corp Trust 2018-CHILL, 144A,(1-Month LIBOR reference rate + 0.750% spread), (3) | 3.205% | 2/17/37 | Aaa | 769,431 | |||||||||||||||
333 | Invitation Homes 2017-SFR3 Trust, 144A,(1-Month LIBOR reference rate + 0.850% spread), (3) | 3.305% | 12/19/36 | Aaa | 328,831 | |||||||||||||||
539 | Invitation Homes 2018-SFR2 Trust, 144A,(1-Month LIBOR reference rate + 0.900% spread), (3) | 3.355% | 6/18/37 | Aaa | 533,112 | |||||||||||||||
692 | Invitation Homes 2018-SFR3 Trust, 144A,(1-Month LIBOR reference rate + 1.000% spread), (3) | 3.455% | 7/17/37 | Aaa | 688,369 | |||||||||||||||
690 | J.P. Morgan Chase Commercial Mortgage Securities Trust 2018-BCON, Series JPMCC 2018-BCON A, 144A | 3.735% | 1/07/31 | AAA | 700,945 | |||||||||||||||
494 | Jimmy Johns Funding LLC, Series JIMMY2017-1A A2II, 144A | 4.846% | 7/30/47 | BBB | 500,030 | |||||||||||||||
776 | JP Morgan Mortgage Trust2016-1, Series JPMMT2016-1 A5, 144A | 3.500% | 5/25/46 | Aaa | 767,791 |
42
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 548 | Mid-State Capital Trust2010-1, Series MDST2010-1 B, 144A | 7.000% | 12/15/45 | A | $ | 579,781 | |||||||||||||
775 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2017-T1 AT1, 144A | 3.214% | 2/15/51 | AAA | 773,388 | |||||||||||||||
474 | New Residential Mortgage Loan Trust2017-1, Series NRZT2017-1A A1, 144A | 4.000% | 2/25/57 | AA+ | 476,923 | |||||||||||||||
497 | New Residential Mortgage Loan Trust2017-3, Series NRZT2017-3A A1, 144A | 4.000% | 4/25/57 | AA+ | 499,338 | |||||||||||||||
459 | New Residential Mortgage Loan Trust2017-6, Series NRZT2017-6A A1, 144A | 4.000% | 8/25/57 | Aaa | 460,926 | |||||||||||||||
576 | New Residential Mortgage Loan Trust2018-5, Series NRZT2018-5A A1, 144A | 4.750% | 12/25/57 | Aaa | 590,437 | |||||||||||||||
750 | NRZ Advance Receivables Trust Advance Receivables Backed2016-T3, Series NRART2016-T3 AT3, 144A | 2.833% | 10/16/51 | AAA | 739,715 | |||||||||||||||
635 | Ocwen Master Advance Receivables Trust, Series OMART2018-T2 AT2, 144A | 3.598% | 8/15/50 | AAA | 636,530 | |||||||||||||||
225 | OneMain Financial Issuance Trust2015-2, Series OMFIT2015-2A B, 144A | 3.100% | 7/18/25 | AA+ | 224,440 | |||||||||||||||
549 | Planet Fitness Master Issuer LLC, Series PLNT2018-1A A2I, 144A | 4.262% | 9/05/48 | BBB– | 550,907 | |||||||||||||||
484 | SBA Small Business Investment Cos, Series SBIC2010-10B A | 3.215% | 9/01/20 | Aaa | 485,987 | |||||||||||||||
375 | Sofi Professional Loan Program2016-A LLC, Series SOFI2016-A A2, 144A | 2.760% | 12/26/36 | Aaa | 369,186 | |||||||||||||||
122 | Sofi Professional Loan Program2016-E LLC, Series SOFI2016-E A2A, 144A | 1.630% | 1/25/36 | Aaa | 122,064 | |||||||||||||||
615 | Sofi Professional Loan Program2017-B LLC, Series SOFI2017-B A2FX, 144A | 2.740% | 5/25/40 | AAA | 604,217 | |||||||||||||||
535 | Tricon American Homes 2017-SFR1 Trust, Series TAH 2017-SFR1 A, 144A | 2.716% | 9/19/34 | Aaa | 516,798 | |||||||||||||||
1,035 | Vendee Mortgage Trust2011-1, Series VENDE2011-1 DA | 3.750% | 2/15/35 | Aaa | 1,044,382 | |||||||||||||||
621 | Wendy’s Funding LLC, Series WEN2015-1A A2II, 144A | 4.080% | 6/15/45 | BBB | 620,725 | |||||||||||||||
$ | 47,160 | Total Asset-Backed and Mortgage-Backed Securities (cost $47,634,005) |
| 47,742,736 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 9.0% | ||||||||||||||||||||
$ | 4,480 | U.S. Treasury Bond | 2.875% | 8/15/28 | Aaa | $ | 4,552,466 | |||||||||||||
1,255 | U.S. Treasury Bond | 2.750% | 8/15/47 | Aaa | 1,190,710 | |||||||||||||||
1,190 | U.S. Treasury Bond | 2.750% | 11/15/47 | Aaa | 1,128,005 | |||||||||||||||
2,390 | U.S. Treasury Bond | 3.000% | 2/15/48 | Aaa | 2,381,366 | |||||||||||||||
720 | U.S. Treasury Bond | 3.125% | 5/15/48 | Aaa | 734,934 | |||||||||||||||
1,220 | U.S. Treasury Bond | 3.375% | 11/15/48 | Aaa | 1,306,825 | |||||||||||||||
$ | 11,255 | Total U.S. Government and Agency Obligations (cost $11,158,485) | 11,294,306 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (4) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.8% | ||||||||||||||||||||
Alabama – 0.5% | ||||||||||||||||||||
$ | 590 | Alabama Economic Settlement Authority, BP Settlement Revenue Bonds, Taxable Series 2016B, 3.163%, 9/15/25 | No Opt. Call | A1 | $ | 585,705 | ||||||||||||||
Florida – 0.3% | ||||||||||||||||||||
470 | Miami-Dade County, Florida, Aviation Revenue Bonds, Refunding Taxable Series 2018C, 4.280%, 10/01/41 | 10/28 at 100.00 | A | 476,161 | ||||||||||||||||
$ | 1,060 | Total Municipal Bonds (cost $1,037,703) |
| 1,061,866 |
43
Nuveen Core Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
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 | 5.570% | N/A (5) | Baa2 | $ | 633,150 | |||||||||||||
$ | 700 | Total $1,000 Par (or similar) Institutional Preferred (cost $622,785) |
| 633,150 | ||||||||||||||||
Total Long-Term Investments (cost $123,414,294) |
| 122,262,021 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 1.9% | ||||||||||||||||||||
Money Market Funds – 1.9% | ||||||||||||||||||||
2,325,343 | First American Treasury Obligations Fund, Class Z | 2.358% (6) | $ | 2,325,343 | ||||||||||||||||
Total Short-Term Investments (cost $2,325,343) | 2,325,343 | |||||||||||||||||||
Total Investments (cost $125,739,637) – 99.5% | 124,587,364 | |||||||||||||||||||
Other Assets Less Liabilities – 0.5% (7) | 595,859 | |||||||||||||||||||
Net Assets – 100% | $ | 125,183,223 |
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. Treasury2-Year Note | Short | (32 | ) | 3/19 | $ | (6,762,174 | ) | $ | (6,794,000 | ) | $ | (31,826 | ) | $ | (4,500 | ) | ||||||||||||
U.S. Treasury5-Year Note | Long | 50 | 3/19 | 5,637,512 | 5,734,375 | 96,863 | 12,500 | |||||||||||||||||||||
U.S. Treasury Long Bond | Long | 28 | 3/19 | 3,975,235 | 4,088,000 | 112,765 | 13,125 | |||||||||||||||||||||
U.S. Treasury Ultra10-Year Note | Short | (86 | ) | 3/19 | (10,236,372 | ) | (10,493,344 | ) | (256,971 | ) | (33,594 | ) | ||||||||||||||||
U.S. Treasury Ultra Bond | Long | 11 | 3/19 | 1,688,276 | 1,767,219 | 78,943 | 6,531 | |||||||||||||||||||||
Total |
| $ | (5,697,523 | ) | $ | (5,697,750 | ) | $ | (226 | ) | $ | (5,938 | ) | |||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 32,156 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (38,094 | ) |
* | The aggregate notional amount of long and short positions is $11,301,023 and $(16,998,546), respectively. |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industrysub-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 industrysub-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) | 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. |
(5) | Perpetual security. Maturity date is not applicable. |
(6) | The rate shown is the annualizedseven-day subsidized yield as of the end of the reporting period. |
(7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certainover-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.
44
Nuveen Core Plus Bond Fund
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.0% | ||||||||||||||||||||
CORPORATE BONDS – 41.4% | ||||||||||||||||||||
Aerospace & Defense – 1.3% | ||||||||||||||||||||
$ | 1,530 | Airbus SE, 144A | 3.150% | 4/10/27 | A+ | $ | 1,472,091 | |||||||||||||
1,295 | BAE Systems Holdings, 144A | 3.850% | 12/15/25 | BBB | 1,284,505 | |||||||||||||||
1,625 | Rockwell Collins Inc. | 3.500% | 3/15/27 | BBB+ | 1,526,203 | |||||||||||||||
4,450 | Total Aerospace & Defense | 4,282,799 | ||||||||||||||||||
Air Freight & Logistics – 0.3% | ||||||||||||||||||||
1,095 | FedEx Corporation | 3.250% | 4/01/26 | BBB | 1,040,007 | |||||||||||||||
Airlines – 0.8% | ||||||||||||||||||||
1,180 | American Airlines Inc., Pass Through Trust2016-1A | 3.575% | 1/15/28 | AA+ | 1,159,041 | |||||||||||||||
1,321 | Northwest Airlines Trust Pass Through Certificates2007-1 | 7.027% | 11/01/19 | A+ | 1,356,773 | |||||||||||||||
2,501 | Total Airlines | 2,515,814 | ||||||||||||||||||
Automobiles – 0.6% | ||||||||||||||||||||
1,000 | BMW US Capital LLC, 144A | 3.100% | 4/12/21 | A+ | 990,281 | |||||||||||||||
1,015 | BMW US Capital LLC, 144A | 3.450% | 4/12/23 | A+ | 1,007,564 | |||||||||||||||
2,015 | Total Automobiles | 1,997,845 | ||||||||||||||||||
Banks – 3.4% | ||||||||||||||||||||
1,105 | Banco Santander SA | 3.800% | 2/23/28 | A– | 983,445 | |||||||||||||||
1,815 | Barclays Bank PLC | 3.650% | 3/16/25 | A | 1,672,956 | |||||||||||||||
1,720 | BNP Paribas SA, 144A | 4.375% | 5/12/26 | A | 1,656,000 | |||||||||||||||
990 | Huntington Bancshares Inc./OH | 4.000% | 5/15/25 | A– | 995,601 | |||||||||||||||
1,000 | ING Groep N.V | 3.950% | 3/29/27 | A+ | 960,063 | |||||||||||||||
1,175 | Lloyds Banking Group PLC | 4.450% | 5/08/25 | A+ | 1,167,233 | |||||||||||||||
1,135 | PNC Financial Services Inc. | 3.150% | 5/19/27 | A+ | 1,083,686 | |||||||||||||||
1,445 | SunTrust Banks Inc. | 2.450% | 8/01/22 | A– | 1,392,996 | |||||||||||||||
1,235 | Wells Fargo & Company | 4.600% | 4/01/21 | A+ | 1,264,619 | |||||||||||||||
11,620 | Total Banks | 11,176,599 | ||||||||||||||||||
Beverages – 0.9% | ||||||||||||||||||||
900 | Anheuser Busch InBev Financial Incorporated, Fixed Rate Note, Series 2016 | 3.650% | 2/01/26 | A– | 849,955 | |||||||||||||||
1,085 | Heineken NV, 144A | 3.500% | 1/29/28 | BBB+ | 1,046,897 | |||||||||||||||
1,085 | Dr. Pepper Snapple Group Inc., 144A | 4.417% | 5/25/25 | BBB | 1,080,446 | |||||||||||||||
3,070 | Total Beverages | 2,977,298 | ||||||||||||||||||
Building Products – 0.5% | ||||||||||||||||||||
425 | American Woodmark Corp, 144A | 4.875% | 3/15/26 | BB | 376,125 |
45
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Building Products(continued) | ||||||||||||||||||||
$ | 1,385 | Owens Corning Incorporated | 4.200% | 12/15/22 | BBB | $ | 1,375,064 | |||||||||||||
1,810 | Total Building Products | 1,751,189 | ||||||||||||||||||
Capital Markets – 5.3% | ||||||||||||||||||||
2,225 | Charles Schwab Corporation. | 2.650% | 1/25/23 | A | 2,171,861 | |||||||||||||||
1,665 | Deutsche Bank AG | 4.875% | 12/01/32 | BBB | 1,294,604 | |||||||||||||||
660 | Goldman Sachs Group, Inc. | 5.250% | 7/27/21 | A | 685,114 | |||||||||||||||
3,000 | Goldman Sachs Group, Inc. | 5.750% | 1/24/22 | A | 3,140,971 | |||||||||||||||
1,250 | Goldman Sachs Group, Inc. | 4.000% | 3/03/24 | A | 1,233,381 | |||||||||||||||
935 | Jefferies Group LLC | 4.850% | 1/15/27 | BBB | 893,932 | |||||||||||||||
1,745 | Lazard Group LLC | 3.625% | 3/01/27 | A– | 1,642,031 | |||||||||||||||
3,250 | Morgan Stanley | 5.500% | 7/28/21 | A | 3,403,350 | |||||||||||||||
2,010 | Morgan Stanley | 3.950% | 4/23/27 | A– | 1,896,048 | |||||||||||||||
1,140 | Northern Trust Company | 3.950% | 10/30/25 | A+ | 1,161,877 | |||||||||||||||
17,880 | Total Capital Markets | 17,523,169 | ||||||||||||||||||
Chemicals – 0.9% | ||||||||||||||||||||
1,260 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 1,171,069 | |||||||||||||||
450 | Chemours Co | 5.375% | 5/15/27 | BB– | 405,000 | |||||||||||||||
1,425 | LYB International Finance BV | 4.000% | 7/15/23 | BBB+ | 1,431,743 | |||||||||||||||
3,135 | Total Chemicals | 3,007,812 | ||||||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||||||
710 | ADT Security Corp/The | 4.125% | 6/15/23 | BB– | 649,650 | |||||||||||||||
710 | Brinks Company, 144A | 4.625% | 10/15/27 | BB+ | 648,038 | |||||||||||||||
1,420 | Total Commercial Services & Supplies | 1,297,688 | ||||||||||||||||||
Consumer Finance – 0.8% | ||||||||||||||||||||
950 | Capital One Financial Corporation. | 3.750% | 3/09/27 | A– | 882,832 | |||||||||||||||
1,590 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | 1,524,992 | |||||||||||||||
350 | Navient Corp | 6.750% | 6/15/26 | BB | 290,500 | |||||||||||||||
2,890 | Total Consumer Finance | 2,698,324 | ||||||||||||||||||
Containers & Packaging – 0.1% | ||||||||||||||||||||
405 | Crown Americas LLC | 4.500% | 1/15/23 | BB– | 395,381 | |||||||||||||||
Diversified Financial Services – 4.8% | ||||||||||||||||||||
792 | Bank of America Corporation | 4.000% | 4/01/24 | A+ | 796,334 | |||||||||||||||
2,250 | Bank of America Corporation | 4.250% | 10/22/26 | A | 2,189,469 | |||||||||||||||
1,422 | Bank of America Corporation | 3.419% | 12/20/28 | A+ | 1,329,149 | |||||||||||||||
795 | Citigroup Inc. | 4.500% | 1/14/22 | A | 812,244 | |||||||||||||||
1,000 | Citigroup Inc. | 3.750% | 6/16/24 | A | 992,915 | |||||||||||||||
795 | Citigroup Inc. | 3.200% | 10/21/26 | A | 734,182 | |||||||||||||||
2,000 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 1,924,234 |
46
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Diversified Financial Services(continued) | ||||||||||||||||||||
$ | 1,380 | Cooperatieve Rabobank UA | 3.950% | 11/09/22 | A | $ | 1,375,425 | |||||||||||||
1,700 | GE Capital International Funding Co Unlimited Co | 4.418% | 11/15/35 | BBB+ | 1,430,222 | |||||||||||||||
1,330 | JP Morgan Chase & Company | 4.500% | 1/24/22 | AA– | 1,370,354 | |||||||||||||||
465 | JP Morgan Chase & Company | 3.200% | 1/25/23 | AA– | 458,199 | |||||||||||||||
660 | JP Morgan Chase & Company | 3.900% | 7/15/25 | AA– | 654,303 | |||||||||||||||
1,250 | JP Morgan Chase & Company | 4.260% | 2/22/48 | AA– | 1,164,237 | |||||||||||||||
555 | Quicken Loans Inc., 144A | 5.250% | 1/15/28 | Ba1 | 491,175 | |||||||||||||||
16,394 | Total Diversified Financial Services | 15,722,442 | ||||||||||||||||||
Diversified Telecommunication Services – 1.7% | ||||||||||||||||||||
2,270 | AT&T, Inc. | 3.800% | 3/15/22 | A– | 2,279,795 | |||||||||||||||
830 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 848,599 | |||||||||||||||
1,275 | Telefonica Emisiones SAU | 4.103% | 3/08/27 | BBB | 1,229,406 | |||||||||||||||
800 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 724,000 | |||||||||||||||
610 | Verizon Communications | 4.125% | 8/15/46 | A– | 538,933 | |||||||||||||||
5,785 | Total Diversified Telecommunication Services | 5,620,733 | ||||||||||||||||||
Electric Utilities – 0.4% | ||||||||||||||||||||
1,087 | Berkshire Hathaway Energy Company | 6.125% | 4/01/36 | A– | 1,297,909 | |||||||||||||||
Electrical Equipment – 0.2% | ||||||||||||||||||||
710 | Park Aerospace Holdings Limited, 144A | 5.250% | 8/15/22 | BB | 686,925 | |||||||||||||||
Energy Equipment & Services – 1.4% | ||||||||||||||||||||
1,110 | Baker Hughes a GE Co LLC / Baker HughesCo-Obligor Inc. | 2.773% | 12/15/22 | A– | 1,064,872 | |||||||||||||||
850 | BP Capital Markets PLC | 2.520% | 9/19/22 | A1 | 821,956 | |||||||||||||||
750 | Ensco PLC, (3) | 5.200% | 3/15/25 | B | 498,750 | |||||||||||||||
1,080 | HSBC Holdings PLC | 4.375% | 11/23/26 | A+ | 1,046,108 | |||||||||||||||
1,070 | Nabors Industries Inc., (3) | 5.500% | 1/15/23 | BB | 849,238 | |||||||||||||||
360 | Oceaneering International Inc. | 6.000% | 2/01/28 | BB+ | 290,432 | |||||||||||||||
5,220 | Total Energy Equipment & Services | 4,571,356 | ||||||||||||||||||
Equity Real Estate Investment Trusts – 0.9% | ||||||||||||||||||||
1,410 | American Tower Company | 5.000% | 2/15/24 | BBB | 1,458,458 | |||||||||||||||
785 | Crown Castle International Corporation | 3.700% | 6/15/26 | BBB | 749,229 | |||||||||||||||
870 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 876,719 | |||||||||||||||
3,065 | Total Equity Real Estate Investment Trusts | 3,084,406 | ||||||||||||||||||
Food & Staples Retailing – 1.0% | ||||||||||||||||||||
1,745 | CVS Health Corp | 4.300% | 3/25/28 | BBB | 1,708,682 | |||||||||||||||
675 | Sysco Corporation | 3.300% | 7/15/26 | A3 | 642,700 | |||||||||||||||
1,025 | Tyson Foods | 3.950% | 8/15/24 | BBB | 1,018,979 | |||||||||||||||
3,445 | Total Food & Staples Retailing | 3,370,361 |
47
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Food Products – 0.9% | ||||||||||||||||||||
$ | 1,200 | Bunge Limited Finance Company | 3.250% | 8/15/26 | BBB | $ | 1,051,946 | |||||||||||||
1,045 | Kraft Heinz Foods Company | 4.375% | 6/01/46 | BBB | 862,014 | |||||||||||||||
1,045 | Smithfield Foods Inc., 144A | 4.250% | 2/01/27 | BBB | 974,634 | |||||||||||||||
3,290 | Total Food Products | 2,888,594 | ||||||||||||||||||
Health Care Providers & Services – 0.7% | ||||||||||||||||||||
695 | Centene Escrow I Corp, 144A | 5.375% | 6/01/26 | BB+ | 675,888 | |||||||||||||||
400 | HCA Inc. | 5.500% | 6/15/47 | BBB– | 379,000 | |||||||||||||||
1,150 | UnitedHealth Group Incorporated | 4.750% | 7/15/45 | A+ | 1,218,354 | |||||||||||||||
2,245 | Total Health Care Providers & Services | 2,273,242 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.4% | ||||||||||||||||||||
345 | 1011778 BC ULC / New Red Finance Inc., 144A | 5.000% | 10/15/25 | B– | 317,400 | |||||||||||||||
525 | Hilton Domestic Operating Co Inc., 144A | 5.125% | 5/01/26 | BB+ | 504,000 | |||||||||||||||
715 | VOC Escrow Ltd, 144A | 5.000% | 2/15/28 | Ba2 | 659,588 | |||||||||||||||
1,585 | Total Hotels, Restaurants & Leisure | 1,480,988 | ||||||||||||||||||
Household Durables – 0.3% | ||||||||||||||||||||
875 | Harman International Industries, Inc. | 4.150% | 5/15/25 | BBB+ | 877,140 | |||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
1,550 | Siemens Financieringsmaatschappij NV, 144A | 3.400% | 3/16/27 | A+ | 1,508,513 | |||||||||||||||
Insurance – 2.7% | ||||||||||||||||||||
385 | AFLAC Insurance | 6.450% | 8/15/40 | A– | 464,661 | |||||||||||||||
975 | CNA Financial Corporation | 3.450% | 8/15/27 | BBB+ | 907,660 | |||||||||||||||
585 | Genworth Holdings Inc. | 4.800% | 2/15/24 | B | 482,625 | |||||||||||||||
1,530 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 1,577,395 | |||||||||||||||
1,215 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 1,238,520 | |||||||||||||||
1,000 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 980,899 | |||||||||||||||
1,020 | Unum Group | 4.000% | 3/15/24 | BBB | 1,012,344 | |||||||||||||||
850 | Willis North America, Inc. | 3.600% | 5/15/24 | BBB | 829,846 | |||||||||||||||
1,440 | XLIT Limited | 4.450% | 3/31/25 | BBB+ | 1,431,635 | |||||||||||||||
9,000 | Total Insurance | 8,925,585 | ||||||||||||||||||
Internet Software & Services – 0.2% | ||||||||||||||||||||
770 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 773,176 | |||||||||||||||
Machinery – 0.8% | ||||||||||||||||||||
1,525 | CNH Industrial NV | 3.850% | 11/15/27 | BBB | 1,387,886 | |||||||||||||||
1,120 | Cummins Engine Inc. | 4.875% | 10/01/43 | A+ | 1,234,599 | |||||||||||||||
2,645 | Total Machinery | 2,622,485 | ||||||||||||||||||
Media – 1.2% | ||||||||||||||||||||
725 | AMC Networks Inc. | 4.750% | 8/01/25 | BB | 657,938 | |||||||||||||||
685 | Comcast Corporation | 6.400% | 5/15/38 | A– | 804,428 |
48
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Media(continued) | ||||||||||||||||||||
$ | 540 | NBCUniversal Media LLC | 6.400% | 4/30/40 | A– | $ | 635,624 | |||||||||||||
715 | SES SA, 144A | 3.600% | 4/04/23 | Baa2 | 701,027 | |||||||||||||||
1,290 | Time Warner Inc. | 3.875% | 1/15/26 | A– | 1,232,659 | |||||||||||||||
3,955 | Total Media | 4,031,676 | ||||||||||||||||||
Metals & Mining – 0.3% | ||||||||||||||||||||
530 | Glencore Funding LLC, 144A | 4.000% | 3/27/27 | BBB+ | 483,077 | |||||||||||||||
465 | United States Steel Corp | 6.250% | 3/15/26 | BB– | 406,875 | |||||||||||||||
995 | Total Metals & Mining | 889,952 | ||||||||||||||||||
Multi-Utilities – 0.3% | ||||||||||||||||||||
1,055 | Sempra Energy | 3.400% | 2/01/28 | BBB+ | 964,529 | |||||||||||||||
Oil, Gas & Consumable Fuels – 2.6% | ||||||||||||||||||||
1,105 | Enterprise Products Operating LLC | 2.800% | 2/15/21 | BBB+ | 1,092,838 | |||||||||||||||
1,200 | Harvest Operations Corp, 144A | 4.200% | 6/01/23 | AA | 1,231,400 | |||||||||||||||
630 | Petro Canada | 6.800% | 5/15/38 | A– | 733,634 | |||||||||||||||
750 | Petroleos del Peru SA, 144A | 4.750% | 6/19/32 | BBB+ | 720,000 | |||||||||||||||
1,110 | Petroleos Mexicanos | 6.500% | 3/13/27 | BBB+ | 1,043,400 | |||||||||||||||
645 | Sabine Pass Liquefaction LLC. | 5.875% | 6/30/26 | BBB– | 683,235 | |||||||||||||||
495 | Targa Resources Inc. | 4.250% | 11/15/23 | BB | 458,494 | |||||||||||||||
875 | Western Gas Partners LP | 4.500% | 3/01/28 | BBB– | 818,354 | |||||||||||||||
1,380 | Woodside Finance Limited, 144A | 3.650% | 3/05/25 | BBB+ | 1,311,324 | |||||||||||||||
695 | WPX Energy Inc. | 5.750% | 6/01/26 | BB– | 628,975 | |||||||||||||||
8,885 | Total Oil, Gas & Consumable Fuels | 8,721,654 | ||||||||||||||||||
Paper & Forest Products – 0.6% | ||||||||||||||||||||
975 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | 989,565 | |||||||||||||||
840 | International Paper Company | 8.700% | 6/15/38 | BBB | 1,118,530 | |||||||||||||||
1,815 | Total Paper & Forest Products | 2,108,095 | ||||||||||||||||||
Pharmaceuticals – 0.4% | ||||||||||||||||||||
770 | Endo Finance LLC, 144A | 5.375% | 1/31/23 | B3 | 585,200 | |||||||||||||||
690 | Teva Pharmaceutical Finance Netherlands III BV | 6.750% | 3/01/28 | BB | 668,920 | |||||||||||||||
1,460 | Total Pharmaceuticals | 1,254,120 | ||||||||||||||||||
Road & Rail – 0.5% | ||||||||||||||||||||
440 | The Hertz Corporation, 144A | 7.625% | 6/01/22 | B+ | 414,700 | |||||||||||||||
700 | Union Pacific Corp | 4.500% | 9/10/48 | A– | 691,223 | |||||||||||||||
575 | United Rentals North America Inc. | 6.500% | 12/15/26 | BB | 566,375 | |||||||||||||||
1,715 | Total Road & Rail | 1,672,298 | ||||||||||||||||||
Semiconductors & Semiconductor Equipment – 0.7% | ||||||||||||||||||||
1,255 | Intel Corporation | 3.150% | 5/11/27 | A+ | 1,219,511 | |||||||||||||||
1,105 | Texas Instruments Incorporated | 2.900% | 11/03/27 | A+ | 1,048,142 | |||||||||||||||
2,360 | Total Semiconductors & Semiconductor Equipment | 2,267,653 |
49
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Software – 0.5% | ||||||||||||||||||||
$ | 410 | CDK Global Inc. | 5.875% | 6/15/26 | BB+ | $ | 411,661 | |||||||||||||
1,165 | Microsoft Corporation | 3.300% | 2/06/27 | AAA | 1,154,571 | |||||||||||||||
1,575 | Total Software | 1,566,232 | ||||||||||||||||||
Specialty Retail – 0.9% | ||||||||||||||||||||
1,005 | AutoNation Inc. | 4.500% | 10/01/25 | BBB– | 971,749 | |||||||||||||||
615 | Lowes Companies, Inc. | 3.100% | 5/03/27 | BBB+ | 562,268 | |||||||||||||||
1,515 | O’Reilly Automotive Inc. | 4.875% | 1/14/21 | Baa1 | 1,555,557 | |||||||||||||||
3,135 | Total Specialty Retail | 3,089,574 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.3% | ||||||||||||||||||||
1,000 | Apple Inc. | 3.850% | 5/04/43 | AA+ | 951,856 | |||||||||||||||
Trading Companies & Distributors – 0.1% | ||||||||||||||||||||
245 | Ashtead Capital Inc., 144A | 4.125% | 8/15/25 | BBB– | 224,175 | |||||||||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||||||||||||
470 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 418,300 | |||||||||||||||
969 | Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC, 144A | 3.360% | 9/20/21 | Baa2 | 957,258 | |||||||||||||||
1,205 | Vodafone Group PLC | 4.375% | 5/30/28 | BBB+ | 1,169,628 | |||||||||||||||
2,644 | Total Wireless Telecommunication Services | 2,545,186 | ||||||||||||||||||
$ | 140,796 | Total Corporate Bonds (cost $141,467,131) | 136,654,780 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 40.9% | ||||||||||||||||||||
$ | 2,420 | Ally Auto Receivables Trust2017-3, Series ALLYA2017-3 A4 | 2.010% | 3/15/22 | AAA | $ | 2,383,595 | |||||||||||||
2,590 | American Express Credit Account Master Trust, Series AMXCA2017-1 A | 1.930% | 9/15/22 | Aaa | 2,559,413 | |||||||||||||||
1,515 | American Homes 4 Rent 2014-SFR2 Trust, Series AH4R 2014-SFR2 A, 144A | 3.786% | 10/17/36 | Aaa | 1,528,921 | |||||||||||||||
3,165 | Americold 2010 LLC, Series ACRE 2010-ARTA C, 144A | 6.811% | 1/14/29 | AA+ | 3,355,813 | |||||||||||||||
2,500 | BA Credit Card Trust, Series BACCT2017-A1 A1 | 1.950% | 8/15/22 | Aaa | 2,470,208 | |||||||||||||||
540 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM2015-UBS7 C | 4.362% | 9/17/48 | A– | 528,462 | |||||||||||||||
345 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM2015-UBS7 D | 3.167% | 9/17/48 | BBB– | 285,410 | |||||||||||||||
30 | Banc of America Funding2007-4 Trust, Series BAFC2007-4 1A2 | 5.500% | 6/25/37 | C | 1,192 | |||||||||||||||
2,165 | BANK 2017-BNK4, Series BANK 2017-BNK4 A4 | 3.625% | 5/17/50 | Aaa | 2,158,443 | |||||||||||||||
595 | Bayview Financial Mortgage Pass-Through Trust2005-D, Series BAYV2005-D AF4 | 5.500% | 12/28/35 | Aa3 | 599,356 | |||||||||||||||
1,100 | BBCMS Trust2015-STP, Series BBCMS2015-STP D, 144A | 4.284% | 9/10/28 | BBB– | 1,092,272 | |||||||||||||||
1,510 | Capital One Multi-Asset Execution Trust, Series COMET2016-A4 A4 | 1.330% | 6/15/22 | AAA | 1,494,754 | |||||||||||||||
2,342 | Citibank Credit Card Issuance Trust, Series CCCIT2014-A1 A1 | 2.880% | 1/23/23 | Aaa | 2,340,611 | |||||||||||||||
2,360 | Citibank Credit Card Issuance Trust, Series CCCIT2014-A6 A6 | 2.150% | 7/15/21 | Aaa | 2,350,282 |
50
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 2,040 | Citibank Credit Card Issuance Trust, Series CCCIT2017-A8 A8 | 1.860% | 8/08/22 | AAA | $ | 2,006,757 | |||||||||||||
1,785 | COMM 2015-CCRE22 Mortgage Trust, Series COMM 2015-CR22 C | 4.121% | 3/12/48 | A– | 1,734,757 | |||||||||||||||
1,485 | COMM 2015-CCRE26 Mortgage Trust, Series COMM 2015-CR26 C | 4.483% | 10/10/48 | A– | 1,467,748 | |||||||||||||||
1,670 | Credit Suisse First Boston Mortgage Securities Corp, Series CSFB2003-8 DB1 | 6.180% | 4/25/33 | BB | 1,720,578 | |||||||||||||||
930 | Discover Card Execution Note Trust, Series DCENT2015-A2 A | 1.900% | 10/17/22 | AAA | 917,200 | |||||||||||||||
1,485 | Discover Card Execution Note Trust, Series DCENT2017-A2 A2 | 2.390% | 7/15/24 | AAA | 1,461,718 | |||||||||||||||
1,654 | Dominos Pizza Master Issuer LLC, Series2017-1A, 144A,(3-Month LIBOR reference rate + 1.250% spread), (4) | 3.740% | 7/25/47 | BBB+ | 1,652,508 | |||||||||||||||
1,723 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2II, 144A | 3.082% | 7/25/47 | BBB+ | 1,678,902 | |||||||||||||||
35 | Fannie Mae Mortgage Pool 250551 FN 250551 | 7.000% | 5/01/26 | N/R | 38,068 | |||||||||||||||
164 | Fannie Mae Mortgage Pool FN 252255 | 6.500% | 2/01/29 | N/R | 181,577 | |||||||||||||||
328 | Fannie Mae Mortgage Pool FN 254169 | 6.500% | 12/01/31 | N/R | 366,107 | |||||||||||||||
323 | Fannie Mae Mortgage Pool FN 254379 | 7.000% | 7/01/32 | N/R | 367,301 | |||||||||||||||
158 | Fannie Mae Mortgage Pool FN 254513 | 6.000% | 10/01/22 | N/R | 169,617 | |||||||||||||||
526 | Fannie Mae Mortgage Pool FN 255575 | 5.500% | 1/01/25 | N/R | 556,548 | |||||||||||||||
99 | Fannie Mae Mortgage Pool FN 256845 | 6.500% | 8/01/37 | N/R | 111,519 | |||||||||||||||
369 | Fannie Mae Mortgage Pool FN 256852 | 6.000% | 8/01/27 | N/R | 396,071 | |||||||||||||||
79 | Fannie Mae Mortgage Pool FN 256890 | 6.000% | 9/01/37 | N/R | 85,659 | |||||||||||||||
22 | Fannie Mae Mortgage Pool FN 340798 | 7.000% | 4/01/26 | N/R | 21,744 | |||||||||||||||
113 | Fannie Mae Mortgage Pool FN 545813 | 7.000% | 7/01/32 | N/R | 127,523 | |||||||||||||||
75 | Fannie Mae Mortgage Pool FN 545815 | 7.000% | 7/01/32 | N/R | 85,871 | |||||||||||||||
411 | Fannie Mae Mortgage Pool FN 555798 | 6.500% | 5/01/33 | N/R | 461,865 | |||||||||||||||
532 | Fannie Mae Mortgage Pool FN 688330 | 6.000% | 3/01/33 | N/R | 581,127 | |||||||||||||||
1,132 | Fannie Mae Mortgage Pool FN 709446 | 5.500% | 7/01/33 | N/R | 1,221,339 | |||||||||||||||
785 | Fannie Mae Mortgage Pool FN 735273 | 6.500% | 6/01/34 | N/R | 878,391 | |||||||||||||||
401 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | N/R | 424,175 | |||||||||||||||
76 | Fannie Mae Mortgage Pool FN 781776 | 6.000% | 10/01/34 | N/R | 82,763 | |||||||||||||||
211 | Fannie Mae Mortgage Pool FN 885536 | 6.000% | 8/01/36 | N/R | 231,003 | |||||||||||||||
386 | Fannie Mae Mortgage Pool FN 900555 | 6.000% | 9/01/36 | N/R | 425,855 | |||||||||||||||
1,183 | Fannie Mae Mortgage Pool FN 932323 | 4.500% | 12/01/39 | N/R | 1,239,150 | |||||||||||||||
— | (5) | Fannie Mae Mortgage Pool FN 983077 | 5.000% | 5/01/38 | N/R | 115 | ||||||||||||||
— | (5) | Fannie Mae Mortgage Pool FN 985344 | 5.500% | 7/01/38 | N/R | 77 | ||||||||||||||
1,395 | Fannie Mae Mortgage Pool FN AC1877 | 4.500% | 9/01/39 | N/R | 1,461,934 | |||||||||||||||
1,139 | Fannie Mae Mortgage Pool FN AD4375 | 5.000% | 5/01/40 | N/R | 1,204,117 | |||||||||||||||
2,737 | Fannie Mae Mortgage Pool FN AE7265 | 4.000% | 1/01/41 | N/R | 2,814,814 | |||||||||||||||
1,395 | Fannie Mae Mortgage Pool FN AS3907 | 4.000% | 11/01/44 | N/R | 1,424,933 | |||||||||||||||
3,300 | Fannie Mae Mortgage Pool FN AS6386 | 3.000% | 12/01/45 | N/R | 3,224,957 | |||||||||||||||
1,817 | Fannie Mae Mortgage Pool FN AS6652 | 3.500% | 2/01/46 | N/R | 1,822,878 | |||||||||||||||
1,977 | Fannie Mae Mortgage Pool FN AS6880 | 3.500% | 3/01/46 | N/R | 1,983,137 |
51
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 2,978 | Fannie Mae Mortgage Pool FN AS7544 | 3.500% | 7/01/46 | N/R | $ | 2,986,798 | |||||||||||||
2,436 | Fannie Mae Mortgage Pool FN AT2722 | 3.000% | 5/01/43 | N/R | 2,396,887 | |||||||||||||||
3,403 | Fannie Mae Mortgage Pool FN BC0823 | 3.500% | 4/01/46 | N/R | 3,414,340 | |||||||||||||||
2,351 | Fannie Mae Mortgage Pool FN BM3257 | 3.500% | 11/01/32 | N/R | 2,380,319 | |||||||||||||||
634 | Fannie Mae Mortgage Pool FN MA1028 | 4.000% | 4/01/42 | N/R | 651,929 | |||||||||||||||
3,010 | Fannie Mae Mortgage Pool FN MA3058 | 4.000% | 7/01/47 | N/R | 3,069,941 | |||||||||||||||
7,690 | Fannie Mae Mortgage Pool FNCL 3.5 1/19l, (WI/DD) | 3.500% | TBA | N/R | 7,691,068 | |||||||||||||||
8,280 | Fannie Mae Mortgage Pool FNCL 4 1/19l, (WI/DD) | 4.000% | TBA | N/R | 8,443,182 | |||||||||||||||
360 | Fannie Mae Mortgage Pool FNCL 4.5 1/19l, (WI/DD) | 4.500% | TBA | N/R | 372,957 | |||||||||||||||
1,000 | Fannie Mae Mortgage Pool FNCL 5 1/19l, (WI/DD) | 5.000% | TBA | N/R | 1,047,787 | |||||||||||||||
1,319 | Fannie Mae Mortgage Pool MFN MA2484 | 4.000% | 12/01/45 | N/R | 1,346,098 | |||||||||||||||
610 | Fannie Mae Real Estate Mortgage Investment Conduit Trust2003-W1, Series FNW2003-W1 B1 | 3.525% | 12/25/42 | N/R | 206,352 | |||||||||||||||
— | (5) | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1989-44 H | 9.000% | 7/25/19 | N/R | 6 | ||||||||||||||
— | (5) | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1989-90 E | 8.700% | 12/25/19 | N/R | 137 | ||||||||||||||
2 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1990-102 J | 6.500% | 8/25/20 | N/R | 2,361 | |||||||||||||||
13 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1990-105 J | 6.500% | 9/25/20 | N/R | 13,385 | |||||||||||||||
— | (5) | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1990-30 E | 6.500% | 3/25/20 | N/R | 376 | ||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1990-61 H | 7.000% | 6/25/20 | N/R | 1,348 | |||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1990-72 B | 9.000% | 7/25/20 | N/R | 1,159 | |||||||||||||||
14 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1991-134 Z | 7.000% | 10/25/21 | N/R | 14,328 | |||||||||||||||
5 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1991-56 M | 6.750% | 6/25/21 | N/R | 4,816 | |||||||||||||||
1 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1992-120 C | 6.500% | 7/25/22 | N/R | 1,426 | |||||||||||||||
90 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR1996-35 Z | 7.000% | 7/25/26 | N/R | 97,015 | |||||||||||||||
495 | Fannie Mae Real Estate Mortgage Investment Conduit, Series FNR2005-62 JE | 5.000% | 6/25/35 | N/R | 509,462 | |||||||||||||||
1,815 | Fifth Third Auto Trust2017-1, Series FITAT2017-1 A3 | 1.800% | 2/15/22 | AAA | 1,795,256 | |||||||||||||||
1,457 | Flagstar Mortgage Trust2018-4, Series FSMT2018-4 A4, 144A | 4.000% | 7/25/48 | Aaa | 1,465,246 | |||||||||||||||
1,350 | FOCUS Brands Funding LLC, Series FOCUS2017-1A A2II, 144A | 5.093% | 4/30/47 | BBB | 1,367,560 | |||||||||||||||
60 | Freddie Mac Gold Pool A15521 | 6.000% | 11/01/33 | Aaa | 64,969 | |||||||||||||||
287 | Freddie Mac Gold Pool A17212 | 6.500% | 7/01/31 | Aaa | 312,026 | |||||||||||||||
171 | Freddie Mac Gold Pool C00676 | 6.500% | 11/01/28 | Aaa | 188,118 | |||||||||||||||
4,917 | Freddie Mac Gold Pool G08706 | 3.500% | 5/01/46 | Aaa | 4,932,173 | |||||||||||||||
82 | Freddie Mac Gold Pool H09059 | 7.000% | 8/01/37 | Aaa | 87,748 | |||||||||||||||
1 | Freddie Mac REMICS, Series FHR 1022 J | 6.000% | 12/15/20 | Aaa | 754 | |||||||||||||||
2 | Freddie Mac REMICS, Series FHR 1118 Z | 8.250% | 7/15/21 | Aaa | 2,551 | |||||||||||||||
1 | Freddie Mac REMICS, Series FHR 162 F | 7.000% | 5/15/21 | Aaa | 577 | |||||||||||||||
1 | Freddie Mac REMICS, Series FHR 1790 A | 7.000% | 4/15/22 | Aaa | 927 | |||||||||||||||
9 | Freddie Mac REMICS, Series FHR 188 H | 7.000% | 9/15/21 | Aaa | 8,585 | |||||||||||||||
158 | Freddie Mac REMICS, Series FHR 3591 FP,(1-Month LIBOR reference rate + 0.600%), (4) | 3.055% | 6/15/39 | Aaa | 159,053 |
52
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 68 | Ginnie Mae I Pool 537699 | 7.500% | 11/15/30 | Aaa | $ | 72,983 | |||||||||||||
1,764 | Ginnie Mae II Pool 4946 | 4.500% | 2/20/41 | Aaa | 1,851,100 | |||||||||||||||
359 | GSMPS Mortgage Loan Trust2005-RP2, Series GSMPS2005-RP2 1A2, 144A | 7.500% | 3/25/35 | B1 | 381,464 | |||||||||||||||
392 | GSMPS Mortgage Loan Trust2005-RP3, Series GSMPS2005-RP3 1A2, 144A | 7.500% | 9/25/35 | B3 | 409,580 | |||||||||||||||
837 | Invitation Homes 2017-SFR3 Trust, 144A,(1-Month LIBOR reference rate + 0.850% spread), (4) | 3.305% | 12/19/36 | Aaa | 826,913 | |||||||||||||||
1,480 | Invitation Homes 2018-SFR2 Trust, 144A,(1-Month LIBOR reference rate + 0.900% spread), (4) | 3.355% | 6/18/37 | Aaa | 1,462,520 | |||||||||||||||
1,910 | JP Morgan Chase Commercial Mortgage Securities Corporation, Pass-Through Certificates Trust 2017-MAUI, 144A,(1-Month LIBOR reference rate + 0.830% spread), (4) | 3.217% | 7/17/34 | AAA | 1,889,127 | |||||||||||||||
2,055 | JPMCC Commercial Mortgage Securities Trust2017-JP5, Series JPMCC2017-JP5 A5 | 3.723% | 3/17/50 | Aaa | 2,069,071 | |||||||||||||||
444 | MASTR Alternative Loan Trust2004-1, Series MALT2004-1 3A1 | 7.000% | 1/25/34 | BBB– | 447,936 | |||||||||||||||
1,192 | Mid-State Capital Corp2005-1 Trust, Series MDST2005-1 A | 5.745% | 1/15/40 | AA | 1,274,468 | |||||||||||||||
1,290 | Morgan Stanley Bank of America Merrill Lynch Trust2014-C16, Series MSBAM2014-C16 D, 144A | 4.754% | 6/17/47 | BBB– | 1,151,734 | |||||||||||||||
895 | Morgan Stanley Bank of America Merrill Lynch Trust2015-C22, Series MSBAM2015-C22 D, 144A | 4.237% | 4/15/48 | BBB– | 772,452 | |||||||||||||||
1,455 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2017-T1 DT1, 144A | 4.002% | 2/15/51 | BBB | 1,435,933 | |||||||||||||||
1,216 | New Residential Mortgage Loan Trust2017-6, Series NRZT2017-6A A1, 144A | 4.000% | 8/25/57 | Aaa | 1,221,453 | |||||||||||||||
1,915 | Ocwen Master Advance Receivables Trust, Series OMART2016-T2 DT2, 144A | 4.446% | 8/16/49 | BBB | 1,915,044 | |||||||||||||||
1,266 | Sequoia Mortgage Trust2018-CH4, Series SEMT2018-CH4 A10, 144A | 4.500% | 10/25/48 | Aaa | 1,290,228 | |||||||||||||||
1,828 | ShellpointCo-Originator Trust2017-2, Series SCOT2017-2 A4, 144A | 3.500% | 10/25/47 | Aaa | 1,805,109 | |||||||||||||||
1,419 | Starwood Waypoint Homes Trust,2017-1, 144A,(1-Month LIBOR + 0.950% spread), (4) | 3.257% | 1/22/35 | Aaa | 1,411,634 | |||||||||||||||
862 | Taco Bell Funding LLC, Series BELL2016-1A A2II, 144A | 4.377% | 5/25/46 | BBB | 869,063 | |||||||||||||||
1,400 | Tricon American Homes 2017-SFR1 Trust, Series TAH 2017-SFR1 A, 144A | 2.716% | 9/19/34 | Aaa | 1,352,369 | |||||||||||||||
1,569 | Vendee Mortgage Trust2011-1, Series VENDE2011-1 DA | 3.750% | 2/15/35 | Aaa | 1,583,283 | |||||||||||||||
1,435 | Volkswagen Auto Loan Enhanced, Series VALET2018-1 A2A | 2.810% | 7/20/21 | AAA | 1,433,086 | |||||||||||||||
842 | Wachovia Mortgage Loan Trust LLC Series2005-B Trust, Series WMLT2005-B 1A1 | 4.533% | 10/20/35 | D | 822,502 | |||||||||||||||
2,650 | Wells Fargo Commercial Mortgage Trust2015-C29, Series WFCM2015-C29 A4 | 3.637% | 6/17/48 | Aaa | 2,674,686 | |||||||||||||||
920 | Wells Fargo Commercial Mortgage Trust2015-C30, Series WFCM2015-C30 D, 144A | 4.497% | 9/17/58 | BBB– | 851,452 | |||||||||||||||
872 | World Omni Auto Receivables Trust2016-B, Series WOART2016-B A3 | 1.300% | 2/15/22 | AAA | 861,972 | |||||||||||||||
$ | 134,456 | Total Asset-Backed and Mortgaged-Backed Securities (cost $134,398,496) |
| 134,955,317 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 5.4% | ||||||||||||||||||||
Banks – 0.5% | ||||||||||||||||||||
$ | 825 | KeyCorp Convertible Preferred Stock | 5.000% | N/A (6) | Baa3 | $ | 753,844 |
53
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Banks(continued) | ||||||||||||||||||||
$ | 1,085 | SunTrust Banks Inc. | 5.050% | N/A (6) | Baa3 | $ | 952,087 | |||||||||||||
1,910 | Total Banks | 1,705,931 | ||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||
755 | Bank of New York Mellon | 4.950% | N/A (6) | Baa1 | 736,125 | |||||||||||||||
780 | Goldman Sachs Group Inc. | 5.300% | N/A (6) | Ba1 | 698,100 | |||||||||||||||
625 | State Street Corporation | 5.250% | N/A (6) | Baa1 | 613,281 | |||||||||||||||
2,160 | Total Capital Markets | 2,047,506 | ||||||||||||||||||
Commercial Services & Supplies – 0.2% | ||||||||||||||||||||
770 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | Ba1 | 746,900 | |||||||||||||||
Consumer Finance – 0.6% | ||||||||||||||||||||
985 | American Express Company | 5.200% | N/A (6) | Baa2 | 970,225 | |||||||||||||||
935 | Capital One Financial Corporation | 5.550% | N/A (6) | Baa3 | 900,508 | |||||||||||||||
1,920 | Total Consumer Finance | 1,870,733 | ||||||||||||||||||
Diversified Financial Services – 1.2% | ||||||||||||||||||||
590 | Bank of America Corp | 6.300% | N/A (6) | BBB– | 599,234 | |||||||||||||||
1,065 | Bank of America Corporation | 6.100% | N/A (6) | BBB– | 1,049,025 | |||||||||||||||
1,500 | JP Morgan Chase & Company | 6.750% | N/A (6) | Baa2 | 1,549,875 | |||||||||||||||
825 | Voya Financial Inc. | 6.125% | N/A (6) | BB+ | 782,719 | |||||||||||||||
3,980 | Total Diversified Financial Services | 3,980,853 | ||||||||||||||||||
Food Products – 0.4% | ||||||||||||||||||||
1,300 | Land O’ Lakes Incorporated, 144A | 8.000% | N/A (6) | BB | 1,374,750 | |||||||||||||||
Industrial Conglomerates – 0.5% | ||||||||||||||||||||
1,851 | General Electric Capital Corporation | 5.000% | N/A (6) | BBB- | 1,416,015 | |||||||||||||||
Insurance – 1.4% | ||||||||||||||||||||
1,220 | Aegon NV | 5.500% | 4/11/48 | Baa1 | 1,110,200 | |||||||||||||||
775 | Allstate Corporation | 5.750% | 8/15/53 | �� | Baa1 | 755,625 | ||||||||||||||
1,220 | American International Group Inc. | 5.750% | 4/01/48 | Baa2 | 1,061,400 | |||||||||||||||
940 | MetLife Inc. | 5.250% | N/A (6) | BBB | 902,400 | |||||||||||||||
960 | Prudential Financial Inc. | 5.200% | 3/15/44 | BBB+ | 898,800 | |||||||||||||||
5,115 | Total Insurance | 4,728,425 | ||||||||||||||||||
$ | 19,006 | Total $1,000 Par (or similar) Institutional Preferred (cost $18,839,103) |
| 17,871,113 | ||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 4.7% | ||||||||||||||||||||
$ | 5,285 | U.S. Treasury Bonds | 2.750% | 11/15/47 | Aaa | $ | 5,009,670 | |||||||||||||
3,650 | U.S. Treasury Inflation Indexed Obligations | 0.500% | 1/15/28 | Aaa | 3,483,444 | |||||||||||||||
7,100 | U.S. Treasury Notes | 1.750% | 9/30/22 | Aaa | 6,912,672 | |||||||||||||||
$ | 16,035 | Total U.S. Government and Agency Obligations (cost $15,475,358) | 15,405,786 |
54
Principal Amount (000) (7) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 3.3% | ||||||||||||||||||||
Argentina – 0.2% | ||||||||||||||||||||
$ | 665 | Republic of Argentina. | 6.875% | 1/11/48 | B | $ | 463,006 | |||||||||||||
Egypt – 0.3% | ||||||||||||||||||||
1,200 | Egypt Government International Bond, 144A | 5.577% | 2/21/23 | B | 1,137,192 | |||||||||||||||
Germany – 2.1% | ||||||||||||||||||||
2,800 | EUR | Bundesrepublik Deutschland Bundesanleihe, Reg S | 0.500% | 2/15/28 | Aaa | 3,303,553 | ||||||||||||||
3,100 | EUR | Bundesrepublik Deutschland Bundesanleihe, Reg S | 0.250% | 2/15/27 | Aaa | 3,608,679 | ||||||||||||||
Total Germany | 6,912,232 | |||||||||||||||||||
Oman – 0.4% | ||||||||||||||||||||
1,250 | Oman Government International Bond, 144A | 5.625% | 1/17/28 | Baa3 | 1,100,470 | |||||||||||||||
Saudi Arabia – 0.3% | ||||||||||||||||||||
1,140 | Saudi Government International Bond, 144A | 4.000% | 4/17/25 | A1 | 1,129,938 | |||||||||||||||
Total Sovereign Debt (cost $11,025,654) | 10,742,838 | |||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CONTINGENT CAPITAL SECURITIES – 2.6% (8) | ||||||||||||||||||||
Banks – 2.1% | ||||||||||||||||||||
$ | 770 | Australia and New Zealand Banking Group Limited of the United Kingdom, 144A | 6.750% | N/A (6) | Baa2 | $ | 755,563 | |||||||||||||
1,175 | BNP Paribas, 144A | 7.375% | N/A (6) | BBB– | 1,172,062 | |||||||||||||||
1,520 | Credit Agricole SA, 144A | 7.875% | N/A (6) | BBB– | 1,518,015 | |||||||||||||||
1,525 | Nordea Bank AB, 144A | 6.125% | N/A (6) | BBB | 1,429,688 | |||||||||||||||
870 | Societe Generale SA, 144A | 6.750% | N/A (6) | BB+ | 739,717 | |||||||||||||||
590 | Standard Chartered PLC, 144A | 7.500% | N/A (6) | Ba1 | 591,475 | |||||||||||||||
860 | UniCredit SpA, Reg S | 8.000% | N/A (6) | B+ | 763,680 | |||||||||||||||
7,310 | Total Banks | 6,970,200 | ||||||||||||||||||
Capital Markets – 0.5% | ||||||||||||||||||||
655 | Credit Suisse Group AG, 144A | 7.500% | N/A (6) | Ba2 | 638,625 | |||||||||||||||
925 | UBS Group AG, Reg S | 7.000% | N/A (6) | BBB– | 941,187 | |||||||||||||||
1,580 | Total Capital Markets | 1,579,812 | ||||||||||||||||||
$ | 8,890 | Total Contingent Capital Securities (cost $9,432,741) | 8,550,012 | |||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provisions (9) | Ratings (2) | Value | ||||||||||||||||
MUNICIPAL BONDS – 0.7% | ||||||||||||||||||||
Florida – 0.4% | ||||||||||||||||||||
$ | 1,300 | Miami-Dade County, Florida, Aviation Revenue Bonds, Refunding Taxable Series 2018C, 4.280%, 10/01/41 | 10/28 at 100.00 | A | $ | 1,317,043 |
55
Nuveen Core Plus Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Optional Call Provisions (9) | Ratings (2) | Value | ||||||||||||||||
Georgia – 0.3% | ||||||||||||||||||||
$ | 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 | BBB+ | $ | 844,553 | ||||||||||||||
$ | 2,050 | Total Municipal Bonds (cost $2,072,486) | 2,161,596 | |||||||||||||||||
Total Long-Term Investments (cost $332,710,969) | 326,341,442 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.4% |
| |||||||||||||||||||
Money Market Funds – 0.4% | ||||||||||||||||||||
1,434,790 | First American Government Obligations Fund, Class X, (10) | 2.355% (11) | $ | 1,434,790 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,434,790) |
| 1,434,790 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 5.7% | ||||||||||||||||||||
Money Market Funds – 5.7% | ||||||||||||||||||||
18,962,804 | First American Treasury Obligations Fund, Class Z | 2.358% (11) | $ | 18,962,804 | ||||||||||||||||
Total Short-Term Investments (cost $18,962,804) | 18,962,804 | |||||||||||||||||||
Total Investments (cost $353,108,563) – 105.1% | 346,739,036 | |||||||||||||||||||
Other Assets Less Liabilities – (5.1)% (12) | (16,948,235) | |||||||||||||||||||
Net Assets – 100% | $ | 329,790,801 |
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 | 6,814,171 | Euro | 5,965,000 | Bank of America, N.A. | 2/08/19 | $ | (43,258 | ) |
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury5-Year Note | Long | 58 | 3/19 | $ | 6,539,512 | $ | 6,651,875 | $ | 112,363 | $ | 14,500 | |||||||||||||||||
U.S. Treasury10-Year Note | Short | (309 | ) | 3/19 | (36,781,396 | ) | (37,702,828 | ) | (921,432 | ) | (120,703 | ) | ||||||||||||||||
U.S. Treasury Long Bond | Long | 84 | 3/19 | 11,694,331 | 12,264,000 | 569,669 | 39,375 | |||||||||||||||||||||
U.S. Treasury Ultra10-Year Note | Short | (90 | ) | 3/19 | (11,334,096 | ) | (11,707,031 | ) | (372,935 | ) | (42,188 | ) | ||||||||||||||||
U.S. Treasury Ultra Bond | Long | 66 | 3/19 | 10,055,650 | 10,603,313 | 547,663 | 39,188 | |||||||||||||||||||||
Total |
| $ | (19,825,999 | ) | $ | (19,890,671 | ) | $ | (64,672 | ) | $ | (69,828 | ) | |||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 93,063 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (162,891 | ) |
* | The aggregate notional amount of long and short positions is $28,289,493 and $(48,115,492), respectively. |
56
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industrysub-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 industrysub-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 $1,347,988. |
(4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(5) | Principal Amount (000) rounds to less than $1,000. |
(6) | Perpetual security. Maturity date is not applicable. |
(7) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(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) | 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. |
(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 annualizedseven-day subsidized yield as of the end of the reporting period. |
(12) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certainover-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. |
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.
57
Nuveen High Income Bond Fund
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 95.7% | ||||||||||||||||||||
CORPORATE BONDS – 85.8% | ||||||||||||||||||||
Air Freight & Logistics – 0.4% | ||||||||||||||||||||
$ | 1,000 | XPO Logistics Inc., 144A | 6.500% | 6/15/22 | BB | $ | 991,250 | |||||||||||||
Airlines – 0.9% | ||||||||||||||||||||
2,000 | Virgin Australia Holdings Limited, 144A | 7.875% | 10/15/21 | B– | 1,950,000 | |||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||
2,110 | Jaguar Land Rover Automotive PLC, 144A, (3) | 4.500% | 10/01/27 | BB | 1,571,950 | |||||||||||||||
Capital Markets – 2.0% | ||||||||||||||||||||
1,500 | DKT Finance ApS, 144A | 9.375% | 6/17/23 | B+ | 1,533,750 | |||||||||||||||
1,500 | Donnelley Financial Solutions, Inc. | 8.250% | 10/15/24 | B | 1,488,750 | |||||||||||||||
1,750 | Jefferies Finance LLC, 144A | 7.250% | 8/15/24 | BB– | 1,618,750 | |||||||||||||||
4,750 | Total Capital Markets | 4,641,250 | ||||||||||||||||||
Chemicals – 5.7% | ||||||||||||||||||||
1,500 | CF Industries Inc. | 5.375% | 3/15/44 | BB+ | 1,215,000 | |||||||||||||||
1,077 | CVR Partners LP / CVR Nitrogen Finance Corp., 144A | 9.250% | 6/15/23 | B+ | 1,120,080 | |||||||||||||||
2,500 | FXI Holdings, Inc., 144A | 7.875% | 11/01/24 | B | 2,143,750 | |||||||||||||||
2,000 | Hexion Inc. | 6.625% | 4/15/20 | CCC+ | 1,595,000 | |||||||||||||||
560 | Kraton Polymers LLC / Kraton Polymers Capital Corp, 144A | 7.000% | 4/15/25 | B | 515,200 | |||||||||||||||
2,000 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 1,890,000 | |||||||||||||||
1,750 | OCI NV, 144A | 6.625% | 4/15/23 | BB– | 1,719,375 | |||||||||||||||
1,000 | Olin Corporation | 5.125% | 9/15/27 | BB+ | 920,000 | |||||||||||||||
2,000 | Starfruit Finco BV / Starfruit US Holdco LLC, 144A, (3) | 8.000% | 10/01/26 | B– | 1,850,000 | |||||||||||||||
14,387 | Total Chemicals | 12,918,405 | ||||||||||||||||||
Commercial Services & Supplies – 4.4% | ||||||||||||||||||||
1,000 | ADT Corp/The, 144A | 4.875% | 7/15/32 | BB– | 740,000 | |||||||||||||||
2,500 | APX Group, Inc. | 7.875% | 12/01/22 | B1 | 2,362,500 | |||||||||||||||
2,600 | Brinks Company, 144A | 4.625% | 10/15/27 | BB+ | 2,373,098 | |||||||||||||||
1,000 | frontdoor Inc., 144A | 6.750% | 8/15/26 | B2 | 950,000 | |||||||||||||||
2,000 | Iron Mountain Inc., 144A | 4.875% | 9/15/27 | BB– | 1,745,000 | |||||||||||||||
1,800 | Staples Inc., 144A | 8.500% | 9/15/25 | B– | 1,623,960 | |||||||||||||||
10,900 | Total Commercial Services & Supplies | 9,794,558 | ||||||||||||||||||
Construction Materials – 0.2% | ||||||||||||||||||||
650 | Gates Global LLC, 144A | 6.000% | 7/15/22 | B | 637,000 | |||||||||||||||
Consumer Finance – 2.1% | ||||||||||||||||||||
2,000 | Curo Group Holdings Corporation, 144A | 8.250% | 9/01/25 | B– | 1,570,000 |
58
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Consumer Finance(continued) | ||||||||||||||||||||
$ | 2,000 | Enova International, Inc., 144A | 8.500% | 9/15/25 | B– | $ | 1,625,000 | |||||||||||||
2,000 | TMX Finance LLC / TitleMax Finance Corp, 144A | 11.125% | 4/01/23 | B– | 1,609,400 | |||||||||||||||
6,000 | Total Consumer Finance | 4,804,400 | ||||||||||||||||||
Containers & Packaging – 0.8% | ||||||||||||||||||||
1,750 | Crown Americas LLC / Crown Americas Capital Corp IV | 4.500% | 1/15/23 | BB– | 1,708,438 | |||||||||||||||
Diversified Financial Services – 3.8% | ||||||||||||||||||||
2,000 | Avation Capital SA, 144A | 6.500% | 5/15/21 | BB– | 1,990,000 | |||||||||||||||
1,470 | CNG Holdings Inc., 144A, (3) | 9.375% | 5/15/20 | CCC+ | 1,374,450 | |||||||||||||||
1,750 | Park Aerospace Holdings Limited, 144A | 5.500% | 2/15/24 | BB | 1,688,750 | |||||||||||||||
2,500 | Quicken Loans Inc., 144A | 5.250% | 1/15/28 | Ba1 | 2,212,500 | |||||||||||||||
1,500 | Ziggo Secured Finance BV, 144A | 5.500% | 1/15/27 | BB | 1,342,500 | |||||||||||||||
9,220 | Total Diversified Financial Services | 8,608,200 | ||||||||||||||||||
Diversified Telecommunication Services – 4.3% | ||||||||||||||||||||
2,000 | Embarq Corporation | 7.995% | 6/01/36 | BB | 1,810,000 | |||||||||||||||
2,425 | GCI Inc. | 6.875% | 4/15/25 | B+ | 2,352,250 | |||||||||||||||
3,150 | Sprint Capital Corporation | 6.875% | 11/15/28 | B+ | 2,976,750 | |||||||||||||||
2,000 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 1,810,000 | |||||||||||||||
1,164 | Windstream Corporation, (3) | 7.750% | 10/15/20 | CCC+ | 733,320 | |||||||||||||||
11 | Xplornet Communications, Inc., 144A, (cash 9.625%, PIK 10.625%) | 9.625% | 6/01/22 | CCC | 10,652 | |||||||||||||||
10,750 | Total Diversified Telecommunication Services | 9,692,972 | ||||||||||||||||||
Electric Utilities – 3.3% | ||||||||||||||||||||
2,500 | Calpine Corporation, 144A | 5.250% | 6/01/26 | BB+ | 2,281,250 | |||||||||||||||
2,350 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B+ | 1,668,500 | |||||||||||||||
2,000 | Terraform Global Operating LLC, 144A | 6.125% | 3/01/26 | BB | 1,860,000 | |||||||||||||||
1,750 | Vistra Operations Co LLC, 144A | 5.500% | 9/01/26 | BB | 1,684,375 | |||||||||||||||
8,600 | Total Electric Utilities | 7,494,125 | ||||||||||||||||||
Electrical Equipment – 0.6% | ||||||||||||||||||||
1,500 | Energizer Gamma Acquisition Inc., 144A, (3) | 6.375% | 7/15/26 | BB– | 1,376,250 | |||||||||||||||
Energy Equipment & Services – 3.2% | ||||||||||||||||||||
1,000 | Bristow Group Inc., 144A, (3) | 8.750% | 3/01/23 | B+ | 715,000 | |||||||||||||||
2,000 | Chesapeake Energy Corporation | 7.500% | 10/01/26 | B– | 1,710,000 | |||||||||||||||
1,500 | Ensco PLC | 7.750% | 2/01/26 | B | 1,110,000 | |||||||||||||||
2,704 | Metro Exploration Holding Corporation, (4) | 11.500% | 2/16/20 | N/R | 270 | |||||||||||||||
1,000 | Nabors Industries Inc., (3) | 5.500% | 1/15/23 | BB | 793,680 | |||||||||||||||
1,500 | Shelf Drilling Holdings Ltd, 144A | 8.250% | 2/15/25 | B2 | 1,282,500 | |||||||||||||||
2,000 | Transocean Inc., 144A | 7.250% | 11/01/25 | B | 1,745,000 | |||||||||||||||
11,704 | Total Energy Equipment & Services | 7,356,450 |
59
Nuveen High Income Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Equity Real Estate Investment Trusts – 0.3% | ||||||||||||||||||||
$ | 1,000 | Uniti Group LP / Uniti Group Finance Inc. / CSL Capital LLC, 144A | 6.000% | 4/15/23 | BB+ | $ | 905,000 | |||||||||||||
Food & Staples Retailing – 3.4% | ||||||||||||||||||||
1,000 | Aramark Services Inc. | 4.750% | 6/01/26 | BB | 940,000 | |||||||||||||||
2,000 | JBS USA LUX SA / JBS USA Finance Inc. 144A | 6.750% | 2/15/28 | BB– | 1,950,000 | |||||||||||||||
2,000 | Minerva Luxembourg SA, 144A | 6.500% | 9/20/26 | BB– | 1,862,520 | |||||||||||||||
1,819 | Albertson’s, Inc. | 7.450% | 8/01/29 | B– | 1,455,200 | |||||||||||||||
2,000 | Rite Aid Corporation, 144A | 6.125% | 4/01/23 | BB | 1,580,000 | |||||||||||||||
8,819 | Total Food & Staples Retailing | 7,787,720 | ||||||||||||||||||
Food Products – 1.5% | ||||||||||||||||||||
1,500 | JBS Investments GmbH, 144A, (3) | 6.250% | 2/05/23 | BB– | 1,485,000 | |||||||||||||||
2,000 | Post Holdings Inc., 144A | 5.625% | 1/15/28 | B+ | 1,840,000 | |||||||||||||||
3,500 | Total Food Products | 3,325,000 | ||||||||||||||||||
Gas Utilities – 0.6% | ||||||||||||||||||||
1,500 | Superior Plus LP / Superior General Partner Inc. 144A | 7.000% | 7/15/26 | BB | 1,447,500 | |||||||||||||||
Health Care Providers & Services – 1.3% | ||||||||||||||||||||
1,000 | CHS/Community Health Systems Inc. | 6.875% | 2/01/22 | CCC– | 455,000 | |||||||||||||||
2,375 | Tenet Healthcare Corporation | 6.000% | 10/01/20 | BB– | 2,404,688 | |||||||||||||||
3,375 | Total Health Care Providers & Services | 2,859,688 | ||||||||||||||||||
Health Care Technology – 0.6% | ||||||||||||||||||||
1,500 | Exela Intermediate LLC / Exela Financial Inc., 144A | 10.000% | 7/15/23 | B | 1,432,500 | |||||||||||||||
Hotels, Restaurants & Leisure – 2.5% | ||||||||||||||||||||
2,250 | 1011778 BC ULC/New Red Finance Inc., 144A, (3) | 4.250% | 5/15/24 | Ba3 | 2,071,823 | |||||||||||||||
2,500 | Golden Nugget, Inc., 144A | 8.750% | 10/01/25 | CCC+ | 2,406,250 | |||||||||||||||
1,500 | MGM Growth Properties Operating Partnership LP / MGP FinanceCo-Issuer Inc. | 4.500% | 1/15/28 | BB+ | 1,312,500 | |||||||||||||||
6,250 | Total Hotels, Restaurants & Leisure | 5,790,573 | ||||||||||||||||||
Household Durables – 1.9% | ||||||||||||||||||||
1,790 | Beazer Homes USA Inc. | 5.875% | 10/15/27 | B– | 1,414,100 | |||||||||||||||
2,000 | Lennar Corp | 4.750% | 11/29/27 | BBB– | 1,805,000 | |||||||||||||||
1,400 | TRI Pointe Group Inc. | 5.250% | 6/01/27 | BB– | 1,106,000 | |||||||||||||||
5,190 | Total Household Durables | 4,325,100 | ||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.8% | ||||||||||||||||||||
2,000 | TerraForm Power Operating LLC, 144A | 5.000% | 1/31/28 | BB | 1,760,000 | |||||||||||||||
Insurance – 1.2% | ||||||||||||||||||||
2,000 | Genworth Holdings Inc. | 4.800% | 2/15/24 | B | 1,650,000 | |||||||||||||||
1,000 | Nationstar Mortgage Holdings Inc., 144A | 9.125% | 7/15/26 | B+ | 972,500 | |||||||||||||||
3,000 | Total Insurance | 2,622,500 | ||||||||||||||||||
Interactive Media & Services – 0.5% | ||||||||||||||||||||
1,500 | Rackspace Hosting Inc., 144A | 8.625% | 11/15/24 | B+ | 1,170,000 |
60
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Leisure Products – 0.8% | ||||||||||||||||||||
$ | 2,000 | Mattel Inc., 144A | 6.750% | 12/31/25 | BB– | $ | 1,784,380 | |||||||||||||
Machinery – 0.7% | ||||||||||||||||||||
750 | Apex Tool Group LLC / BC Mountain Finance Inc., 144A, (3) | 9.000% | 2/15/23 | B– | 633,750 | |||||||||||||||
1,000 | Cleaver-Brooks Inc., 144A | 7.875% | 3/01/23 | B | 965,000 | |||||||||||||||
1,750 | Total Machinery | 1,598,750 | ||||||||||||||||||
Media – 5.4% | ||||||||||||||||||||
1,500 | Altice S.A, 144A | 7.750% | 5/15/22 | B– | 1,365,000 | |||||||||||||||
2,000 | AMC Networks Inc. | 4.750% | 8/01/25 | BB | 1,815,000 | |||||||||||||||
2,000 | CBS Radio, Inc., 144A, (3) | 7.250% | 11/01/24 | B– | 1,860,000 | |||||||||||||||
2,500 | Intelsat Luxembourg SA, (3) | 8.125% | 6/01/23 | CCC– | 1,937,500 | |||||||||||||||
2,000 | Meredith Corporation, 144A | 6.875% | 2/01/26 | B | 1,955,000 | |||||||||||||||
2,000 | Midcontinent Communications / Midcontinent Finance Corp, 144A | 6.875% | 8/15/23 | B | 2,060,900 | |||||||||||||||
1,330 | Sirius XM Radio Inc., 144A | 5.375% | 7/15/26 | BB | 1,243,550 | |||||||||||||||
13,330 | Total Media | 12,236,950 | ||||||||||||||||||
Metals & Mining – 9.8% | ||||||||||||||||||||
1,500 | AK Steel Corporation, (3) | 7.000% | 3/15/27 | B– | 1,170,000 | |||||||||||||||
2,000 | Alcoa Nederland Holding BV, 144A | 6.125% | 5/15/28 | BB+ | 1,915,000 | |||||||||||||||
2,000 | Aleris International Inc., 144A, (3) | 10.750% | 7/15/23 | CCC+ | 2,043,600 | |||||||||||||||
2,000 | First Quantum Minerals Ltd, 144A | 7.000% | 2/15/21 | B | 1,920,000 | |||||||||||||||
3,000 | FMG Resources, 144A | 4.750% | 5/15/22 | BB+ | 2,850,000 | |||||||||||||||
2,000 | Freeport-McMoRan Inc. | 3.875% | 3/15/23 | BB+ | 1,850,000 | |||||||||||||||
2,000 | Northwest Acquisition/Dominion Finco Inc. , 144A | 7.125% | 11/01/22 | BB | 1,977,060 | |||||||||||||||
1,500 | SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp., 144A | 7.500% | 6/15/25 | BB– | 1,421,250 | |||||||||||||||
2,630 | Taseko Mines Limited, 144A | 8.750% | 6/15/22 | B | 2,367,000 | |||||||||||||||
1,500 | Tronox Inc., 144A, (3) | 6.500% | 4/15/26 | B– | 1,245,000 | |||||||||||||||
2,000 | United States Steel Corporation | 6.875% | 8/15/25 | BB– | 1,830,000 | |||||||||||||||
1,750 | Warrior Met Coal LLC, 144A | 8.000% | 11/01/24 | BB– | 1,736,875 | |||||||||||||||
23,880 | Total Metals & Mining | 22,325,785 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 7.8% | ||||||||||||||||||||
2,834 | Armstrong Energy Inc., (4) | 11.750% | 12/15/19 | N/R | 28 | |||||||||||||||
1,750 | Ascent Resources – Utica LLC / AEU Finance Corporation, 144A | 7.000% | 11/01/26 | BB– | 1,583,750 | |||||||||||||||
1,350 | California Resources Corporation, 144A, (3) | 8.000% | 12/15/22 | B– | 914,625 | |||||||||||||||
2,000 | DOF Subsea AS, 144A, Reg S | 9.500% | 3/14/22 | N/R | 1,762,374 | |||||||||||||||
1,500 | EP Energy LLC and Everest Acquisition Finance, Inc., 144A | 8.000% | 2/15/25 | Caa2 | 618,750 | |||||||||||||||
1,900 | Genesis Energy LP | 6.500% | 10/01/25 | B+ | 1,672,000 | |||||||||||||||
2,000 | Halcon Resources Corporation | 6.750% | 2/15/25 | B– | 1,460,000 | |||||||||||||||
1,000 | Murphy Oil Corporation | 5.750% | 8/15/25 | BBB– | 934,480 | |||||||||||||||
2,000 | Peabody Energy Corporation, 144A | 6.375% | 3/31/25 | BB | 1,860,000 |
61
Nuveen High Income Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Oil, Gas & Consumable Fuels(continued) | ||||||||||||||||||||
$ | 1,800 | Southwestern Energy Company | 7.500% | 4/01/26 | BB | $ | 1,701,000 | |||||||||||||
2,000 | Sunoco LP / Sunoco Finance Corp | 4.875% | 1/15/23 | BB | 1,950,000 | |||||||||||||||
1,500 | Targa Resources Partners LP / Targa Resources Partners Finance Corp, 144A | 5.875% | 4/15/26 | BB | 1,458,750 | |||||||||||||||
1,000 | W&T Offshore Inc., 144A | 9.750% | 11/01/23 | B | 875,000 | |||||||||||||||
1,000 | Whiting Petroleum Corporation | 6.625% | 1/15/26 | BB | 857,500 | |||||||||||||||
23,634 | Total Oil, Gas & Consumable Fuels | 17,648,257 | ||||||||||||||||||
Personal Products – 0.1% | ||||||||||||||||||||
550 | First Quality Finance Co Inc., 144A | 5.000% | 7/01/25 | BB– | 492,250 | |||||||||||||||
Pharmaceuticals – 1.4% | ||||||||||||||||||||
1,500 | Bausch Health Cos Inc., 144A | 5.875% | 5/15/23 | B– | 1,387,500 | |||||||||||||||
2,500 | Endo Finance LLC, 144A | 5.375% | 1/31/23 | B3 | 1,900,000 | |||||||||||||||
4,000 | Total Pharmaceuticals | 3,287,500 | ||||||||||||||||||
Real Estate Management & Development – 0.6% | ||||||||||||||||||||
1,500 | Hunt Cos Inc., 144A | 6.250% | 2/15/26 | BB– | 1,281,600 | |||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||||||
2,000 | United Rentals North America Inc. | 6.500% | 12/15/26 | BB | 1,970,000 | |||||||||||||||
Software – 0.7% | ||||||||||||||||||||
2,000 | West Corporation, 144A | 8.500% | 10/15/25 | B3 | 1,570,000 | |||||||||||||||
Specialty Retail – 3.5% | ||||||||||||||||||||
1,000 | GameStop Corp, 144A, (3) | 6.750% | 3/15/21 | Ba1 | 997,500 | |||||||||||||||
2,000 | goeasy Ltd, 144A | 7.875% | 11/01/22 | BB– | 2,025,000 | |||||||||||||||
1,500 | JC Penney Corp Inc., 144A, (3) | 8.625% | 3/15/25 | BB | 795,000 | |||||||||||||||
3,000 | L Brands, Inc. | 6.875% | 11/01/35 | Ba1 | 2,505,600 | |||||||||||||||
1,750 | PGT Escrow Issuer Inc., 144A | 6.750% | 8/01/26 | B | 1,723,750 | |||||||||||||||
9,250 | Total Specialty Retail | 8,046,850 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 0.8% | ||||||||||||||||||||
2,000 | Western Digital Corp | 4.750% | 2/15/26 | Baa3 | 1,735,000 | |||||||||||||||
Tobacco – 1.3% | ||||||||||||||||||||
2,750 | Pyxus International Inc. | 9.875% | 7/15/21 | CCC | 2,083,125 | |||||||||||||||
915 | Vector Group Limited, 144A | 6.125% | 2/01/25 | BB– | 777,750 | |||||||||||||||
3,665 | Total Tobacco | 2,860,875 | ||||||||||||||||||
Trading Companies & Distributors – 1.2% | ||||||||||||||||||||
1,000 | Beacon Roofing Supply Inc., 144A | 4.875% | 11/01/25 | B+ | 878,750 | |||||||||||||||
2,000 | H&E Equipment Services Inc. | 5.625% | 9/01/25 | BB– | 1,835,000 | |||||||||||||||
3,000 | Total Trading Companies & Distributors | 2,713,750 | ||||||||||||||||||
U.S. Agency – 0.6% | ||||||||||||||||||||
1,500 | Hilcorp Energy I LP / Hilcorp Finance Co, 144A | 6.250% | 11/01/28 | BB+ | 1,320,000 |
62
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Wireless Telecommunication Services – 3.2% | ||||||||||||||||||||
$ | 1,900 | C&W SR Financing Designated Activity Co, 144A | 6.875% | 9/15/27 | BB– | $ | 1,753,225 | |||||||||||||
2,000 | Digicel Limited, 144A, (3) | 6.000% | 4/15/21 | B3 | 1,795,000 | |||||||||||||||
1,900 | Level 3 Financing Inc. | 5.250% | 3/15/26 | BB | 1,738,500 | |||||||||||||||
2,000 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BBB– | 1,900,000 | |||||||||||||||
7,800 | Total Wireless Telecommunication Services | 7,186,725 | ||||||||||||||||||
$ | 224,814 | Total Corporate Bonds (cost $216,483,475) | 195,079,501 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 3.1% | ||||||||||||||||||||
Banks – 0.3% | ||||||||||||||||||||
$ | 725 | CIT Group Inc. | 5.800% | N/A (5) | Ba3 | $ | 656,125 | |||||||||||||
Commercial Services & Supplies – 1.0% | ||||||||||||||||||||
2,500 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | Ba1 | 2,425,000 | |||||||||||||||
Food Products – 1.7% | ||||||||||||||||||||
2,000 | Dairy Farmers of America Inc., 144A | 7.125% | N/A (5) | BB+ | 1,865,000 | |||||||||||||||
2,000 | Land O’ Lakes Incorporated, 144A | 7.000% | N/A (5) | BB | 1,950,000 | |||||||||||||||
4,000 | Total Food Products | 3,815,000 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||
330 | Buckeye Partners LP | 6.375% | 1/22/78 | Ba1 | 268,406 | |||||||||||||||
$ | 7,555 | Total $1,000 Par (or similar) Institutional Preferred (cost $7,628,462) | 7,164,531 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CONTINGENT CAPITAL SECURITIES – 2.8% (8) | ||||||||||||||||||||
Banks – 2.2% | ||||||||||||||||||||
$ | 1,200 | Banco Bilbao Vizcaya Argentaria S.A, (3) | 6.125% | N/A (5) | Ba2 | $ | 1,005,000 | |||||||||||||
1,000 | Intesa Sanpaolo SpA, (2), 144A | 7.700% | N/A (5) | BB– | 895,000 | |||||||||||||||
1,000 | Royal Bank of Scotland Group PLC | 7.500% | N/A (5) | BB+ | 990,000 | |||||||||||||||
1,385 | Societe Generale Sa, 144A | 6.750% | N/A (5) | BB+ | 1,177,596 | |||||||||||||||
1,015 | UniCredit SpA, Reg S | 8.000% | N/A (5) | B+ | 901,320 | |||||||||||||||
5,600 | Total Banks | 4,968,916 | ||||||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||||||
1,500 | Credit Suisse Group AG, 144A | 7.500% | N/A (5) | Ba2 | 1,462,500 | |||||||||||||||
$ | 7,100 | Total Contingent Capital Securities (cost $6,691,461) | 6,431,416 |
63
Nuveen High Income Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon (6) | Reference Rate (6) | Spread (6) | Maturity (7) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 2.7% (6) |
| |||||||||||||||||||||||||||
Containers & Packaging – 0.4% | ||||||||||||||||||||||||||||
$ | 1,000 | Packaging Coordinators Midco Inc., Term Loan, 2L | 11.140% | 3-Month LIBOR | 8.750% | 6/30/24 | CCC+ | $ | 1,000,000 | |||||||||||||||||||
Diversified Financial Services – 0.8% | ||||||||||||||||||||||||||||
1,729 | Jill Acquisition LLC, Term Loan, 1L | 7.530% | 3-Month LIBOR | 5.000% | 5/08/22 | B1 | 1,714,245 | |||||||||||||||||||||
IT Services – 0.2% | ||||||||||||||||||||||||||||
500 | Optiv Security Inc., Second Lien Term Loan | 9.552% | 3-Month LIBOR | 7.250% | 1/13/25 | CCC | 455,000 | |||||||||||||||||||||
Professional Services – 1.3% | ||||||||||||||||||||||||||||
3,000 | Sedgwick Claims Management Service Inc., | 11.140% | 3-Month LIBOR | 5.750% | 2/28/22 | Caa2 | 2,982,515 | |||||||||||||||||||||
$ | 6,229 | Total Variable Rate Senior Loan Interests (cost $6,181,962) |
| 6,151,760 | ||||||||||||||||||||||||
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.9% |
| |||||||||||||||||||||||||||
Food Products – 0.4% | ||||||||||||||||||||||||||||
34,685 | CHS Inc. | 6.750% | N/R | $ | 834,521 | |||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.5% | ||||||||||||||||||||||||||||
60,000 | Nustar Energy LP | 8.500% | B1 | 1,164,600 | ||||||||||||||||||||||||
Total $25 Par (or similar) Preferred Securities (cost $2,168,792) |
| 1,999,121 | ||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
SOVEREIGN DEBT – 0.4% | ||||||||||||||||||||||||||||
Nigeria – 0.4% | ||||||||||||||||||||||||||||
1,000 | Nigeria Government International Bond, 144A | 7.625% | 11/21/25 | B+ | $ | 964,000 | ||||||||||||||||||||||
Total Sovereign Debt (cost $1,000,000) | 964,000 | |||||||||||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||||||||||
526 | Dayton Superior Class A, (9), (10) | $ | 5 | |||||||||||||||||||||||||
585 | Dayton Superior Class 1, (9) | 6 | ||||||||||||||||||||||||||
Total Building Products | 11 | |||||||||||||||||||||||||||
Capital Markets – 0.0% | ||||||||||||||||||||||||||||
2,292 | Adamas Finance Asia Limited, (10) | 1,387 | ||||||||||||||||||||||||||
Energy Equipment & Services – 0.0% | ||||||||||||||||||||||||||||
3 | SAExploration Holdings Inc., (9), (10) | — | ||||||||||||||||||||||||||
Metals & Mining – 0.0% | ||||||||||||||||||||||||||||
499,059 | Northland Resources SA, (9), (10) | 4,991 |
64
Shares | Description (1) | Value | ||||||||||||||||||||||||||
Multi-Utilities – 0.0% | ||||||||||||||||||||||||||||
1 | Dominion Resources, Inc. | $ | 57 | |||||||||||||||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||||||||||
1 | Arch Coal Inc., Class A | 83 | ||||||||||||||||||||||||||
50,119 | Connacher Oil and Gas Limited, (9), (10) | 15 | ||||||||||||||||||||||||||
Total Oil, Gas & Consumable Fuels | 98 | |||||||||||||||||||||||||||
Total Common Stocks (cost $1,157,016) | 6,544 | |||||||||||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||||||||||
WARRANTS – 0.0% | ||||||||||||||||||||||||||||
Energy Equipment & Services - 0.0% | ||||||||||||||||||||||||||||
28 | SAExploration Holdings Inc., (9), (10) | $ | — | |||||||||||||||||||||||||
Road & Rail – 0.0% | ||||||||||||||||||||||||||||
8,907 | Jack Cooper Enterprises, (9) | — | ||||||||||||||||||||||||||
Total Warrants (cost $223) | — | |||||||||||||||||||||||||||
Total Long-Term Investments (cost $241,311,391) | 217,796,873 | |||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 10.0% |
| |||||||||||||||||||||||||||
Money Market Funds – 10.0% | ||||||||||||||||||||||||||||
22,726,569 | First American Government Obligations Fund, Class X, (11) | 2.355% (12) | $ | 22,726,569 | ||||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $22,726,569) |
| 22,726,569 | ||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 2.0% | ||||||||||||||||||||||||||||
Money Market Funds – 2.0% | ||||||||||||||||||||||||||||
4,590,067 | First American Treasury Obligations Fund, Class Z | 2.358% (12) | $ | 4,590,067 | ||||||||||||||||||||||||
Total Short-Term Investments (cost $4,590,067) | 4,590,067 | |||||||||||||||||||||||||||
Total Investments (cost $268,628,027) – 107.7% | 245,113,509 | |||||||||||||||||||||||||||
Other Assets Less Liabilities – (7.7)% | (17,470,112) | |||||||||||||||||||||||||||
Net Assets – 100% | $ | 227,643,397 |
65
Nuveen High Income Bond Fund(continued)
Portfolio of Investments December 31, 2018
(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 $21,535,724. |
(4) | As of, or subsequent to, the end of the reporting period, this security isnon-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. |
(5) | Perpetual security. Maturity date is not applicable. |
(6) | 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. |
(7) | 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. |
(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) | 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. |
(10) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(11) | 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. |
(12) | The rate shown is the annualizedseven-day subsidized yield as of the end of the reporting period. |
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 |
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.
66
Nuveen Inflation Protected Securities Fund
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.3% | ||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 87.2% | ||||||||||||||||||||
$ | 5,890 | Federal Farm Credit Banks | 2.875% | 5/26/21 | Aaa | $ | 5,927,549 | |||||||||||||
5,985 | Federal Home Loan Banks | 3.250% | 6/09/28 | Aaa | 6,020,832 | |||||||||||||||
39,310 | U.S. Treasury Bonds | 0.625% | 1/15/24 | Aaa | 38,697,867 | |||||||||||||||
4,504 | U.S. Treasury Bonds | 2.000% | 1/15/26 | Aaa | 4,807,401 | |||||||||||||||
2,821 | U.S. Treasury Bonds | 2.375% | 1/15/27 | Aaa | 3,115,027 | |||||||||||||||
1,805 | U.S. Treasury Bonds | 1.750% | 1/15/28 | Aaa | 1,916,529 | |||||||||||||||
1,212 | U.S. Treasury Bonds | 3.625% | 4/15/28 | Aaa | 1,487,107 | |||||||||||||||
3,961 | U.S. Treasury Bonds | 3.875% | 4/15/29 | Aaa | 5,039,375 | |||||||||||||||
3,569 | U.S. Treasury Bonds | 2.125% | 2/15/40 | Aaa | 4,194,778 | |||||||||||||||
4,556 | U.S. Treasury Bonds | 2.125% | 2/15/41 | Aaa | 5,380,350 | |||||||||||||||
18,723 | U.S. Treasury Bonds | 0.750% | 2/15/42 | Aaa | 16,991,195 | |||||||||||||||
5,355 | U.S. Treasury Bonds | 1.375% | 2/15/44 | Aaa | 5,529,480 | |||||||||||||||
25,161 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/20 | Aaa | 24,595,553 | |||||||||||||||
24,623 | U.S. Treasury Inflation Indexed Obligations | 1.125% | 1/15/21 | Aaa | 24,511,761 | |||||||||||||||
33,973 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/21 | Aaa | 33,035,682 | |||||||||||||||
26,815 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/22 | Aaa | 26,029,822 | |||||||||||||||
20,043 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 4/15/22 | Aaa | 19,389,715 | |||||||||||||||
8,402 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/22 | Aaa | 8,160,663 | |||||||||||||||
32,884 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 1/15/23 | Aaa | 31,762,486 | |||||||||||||||
2,036 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 4/15/23 | Aaa | 2,002,457 | |||||||||||||||
3,151 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/23 | Aaa | 3,081,385 | |||||||||||||||
11,960 | U.S. Treasury Inflation Indexed Obligations | 0.125% | 7/15/24 | Aaa | 11,469,791 | |||||||||||||||
10,850 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/25 | Aaa | 10,461,116 | |||||||||||||||
52,240 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 1/15/26 | Aaa | 50,853,938 | |||||||||||||||
16,489 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 1/15/27 | Aaa | 15,662,969 | |||||||||||||||
7,826 | U.S. Treasury Inflation Indexed Obligations | 0.375% | 7/15/27 | Aaa | 7,424,837 | |||||||||||||||
31,884 | U.S. Treasury Inflation Indexed Obligations | 0.500% | 1/15/28 | Aaa | 30,431,214 | |||||||||||||||
2,468 | U.S. Treasury Inflation Indexed Obligations | 2.500% | 1/15/29 | Aaa | 2,808,705 | |||||||||||||||
20,756 | U.S. Treasury Inflation Indexed Obligations | 0.625% | 2/15/43 | Aaa | 18,193,799 | |||||||||||||||
16,919 | U.S. Treasury Inflation Indexed Obligations | 0.750% | 2/15/45 | Aaa | 15,130,585 | |||||||||||||||
5,479 | U.S. Treasury Inflation Indexed Obligations | 0.875% | 2/15/47 | Aaa | 5,030,732 | |||||||||||||||
3,025 | U.S. Treasury Inflation Indexed Obligations | 1.000% | 2/15/48 | Aaa | 2,867,699 | |||||||||||||||
55,322 | U.S. Treasury Notes | 0.250% | 1/15/25 | Aaa | 52,979,617 | |||||||||||||||
11,742 | U.S. Treasury Notes | 0.125% | 7/15/26 | Aaa | 11,024,985 | |||||||||||||||
$ | 521,739 | Total U.S. Government and Agency Obligations (cost $522,246,829) | 506,017,001 |
67
Nuveen Inflation Protected Securities Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 10.2% | ||||||||||||||||||||
$ | 3,000 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM 2015-UBS7 D | 3.167% | 9/17/48 | BBB– | $ | 2,481,824 | |||||||||||||
2,848 | Deephaven Residential Mortgage Trust2018-4, Series DRMT2018-4A A1, 144A | 4.080% | 10/25/58 | AAA | 2,868,152 | |||||||||||||||
2,859 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2I, 144A,(3-Month LIBOR reference rate + 1.250% spread), (3) | 3.740% | 7/25/47 | BBB+ | 2,856,125 | |||||||||||||||
2,938 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2II, 144A | 3.082% | 7/25/47 | BBB+ | 2,862,311 | |||||||||||||||
2,183 | DRIVEN BRANDS FUNDING LLC, Series HONK2015-1A A2, 144A | 5.216% | 7/20/45 | BBB– | 2,266,177 | |||||||||||||||
1,550 | Finance of America Structured Securities Trust2017-HB1, Series FASST2017-HB1 M3, 144A | 3.624% | 11/25/27 | Baa2 | 1,543,785 | |||||||||||||||
2,375 | Flagstar Mortgage Trust2017-2, Series FSMT2017-2 A5, 144A | 3.500% | 10/25/47 | Aaa | 2,361,712 | |||||||||||||||
2,334 | FOCUS Brands Funding LLC, Series FOCUS2017-1A A2II, 144A | 5.093% | 4/30/47 | BBB | 2,365,778 | |||||||||||||||
1,919 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2018-SPI3 M1, 144A | 4.168% | 8/25/48 | BBB– | 1,923,952 | |||||||||||||||
2,050 | GS Mortgage Securities Trust 2015-GC32, Series GSMS 2015-GC32 D | 3.345% | 7/10/48 | BBB– | 1,746,753 | |||||||||||||||
1,405 | Invitation Homes 2017-SFR2 Trust, Series IHSFR 2017-SFR2 A, 144A,(1-Month LIBOR reference rate + 0.850% spread), (3) | 3.305% | 12/19/36 | Aaa | 1,387,860 | |||||||||||||||
3,059 | Invitation Homes 2018-SFR1 Trust, Series IHSFR 2018-SFR1 A, 144A,(1-Month LIBOR reference rate + 0.700% spread), (3) | 3.155% | 3/19/37 | Aaa | 2,995,531 | |||||||||||||||
2,716 | Jimmy Johns Funding LLC, Series JIMMY2017-1A A2I, 144A | 3.610% | 7/30/47 | BBB | 2,707,940 | |||||||||||||||
2,230 | Morgan Stanley Bank of America Merrill Lynch Trust2014-C16, Series MSBAM2014-C16 D, 144A | 4.754% | 6/17/47 | BBB– | 1,990,982 | |||||||||||||||
2,000 | Morgan Stanley Bank of America Merrill Lynch Trust2015-C22, Series MSBAM2015-C22 D, 144A | 4.237% | 4/15/48 | BBB– | 1,726,151 | |||||||||||||||
500 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2016-T2 DT2, 144A | 4.005% | 10/15/49 | BBB | 495,711 | |||||||||||||||
2,565 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2017-T1 DT1, 144A | 4.002% | 2/15/51 | BBB | 2,531,387 | |||||||||||||||
2,041 | New Residential Mortgage Loan Trust2017-6, Series NRZT2017-6A A1, 144A | 4.000% | 8/25/57 | Aaa | 2,051,119 | |||||||||||||||
2,833 | New Residential Mortgage Loan Trust2018-5, Series NRZT2018-5A A1, 144A | 4.750% | 12/25/57 | Aaa | 2,902,147 | |||||||||||||||
1,885 | Ocwen Master Advance Receivables Trust, Series OMART2018-T2 DT2, 144A | 4.532% | 8/15/50 | BBB | 1,889,392 | |||||||||||||||
2,494 | Planet Fitness Master Issuer LLC, Series PLNT2018-1A A2I, 144A | 4.262% | 9/05/48 | BBB– | 2,504,124 | |||||||||||||||
1,005 | Sequoia Mortgage Trust2017-CH2, Series SEMT2017-CH2 A10, 144A | 4.000% | 12/25/47 | Aaa | 1,008,025 | |||||||||||||||
2,346 | Sequoia Mortgage Trust2018-CH4, Series SEMT2018-CH4 A10, 144A | 4.500% | 10/25/48 | Aaa | 2,392,101 | |||||||||||||||
2,926 | ShellpointCo-Originator Trust2017-2, Series SCOT2017-2 A4, 144A | 3.500% | 10/25/47 | Aaa | 2,889,060 | |||||||||||||||
1,600 | SPS Servicer Advance Receivables Trust, Series SPART2018-T1 DT1, 144A | 4.500% | 10/17/50 | BBB | 1,602,942 | |||||||||||||||
972 | TCF Auto Receivables Owner Trust2015-2, Series TCFAT2015-2A A4, 144A | 2.550% | 4/15/21 | AAA | 969,263 | |||||||||||||||
1,580 | Wells Fargo Commercial Mortgage Trust2015-C30, Series WFCM2015-C30 D, 144A | 4.497% | 9/17/58 | BBB– | 1,462,276 | |||||||||||||||
2,370 | WFRBS Commercial Mortgage Trust2011-C3, Series WFRBS2011-C3 C, 144A | 5.335% | 3/17/44 | A1 | 2,414,886 | |||||||||||||||
$ | 60,583 | Total Asset-Backed and Mortgage-Backed Securities (cost $59,055,609) | 59,197,466 |
68
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 1.6% | ||||||||||||||||||||
Airlines – 0.1% | ||||||||||||||||||||
$ | 316 | American Airlines2013-2 Class B Pass Through Trust, 144A | 5.600% | 7/15/20 | BBB– | $ | 318,145 | |||||||||||||
Auto Components – 0.1% | ||||||||||||||||||||
300 | American Axle & Manufacturing Inc. | 6.625% | 10/15/22 | B | 297,000 | |||||||||||||||
300 | Tenneco Inc. | 5.375% | 12/15/24 | BB– | 258,750 | |||||||||||||||
600 | Total Auto Components | 555,750 | ||||||||||||||||||
Automobiles – 0.1% | ||||||||||||||||||||
465 | General Motors Company | 4.000% | 4/01/25 | BBB | 434,671 | |||||||||||||||
Banks – 0.0% | ||||||||||||||||||||
170 | CIT Group Inc. | 5.000% | 8/01/23 | BB+ | 166,600 | |||||||||||||||
Building Products – 0.1% | ||||||||||||||||||||
250 | Owens Corning | 4.200% | 12/15/22 | BBB | 248,206 | |||||||||||||||
Chemicals – 0.1% | ||||||||||||||||||||
515 | CF Industries Inc. | 3.450% | 6/01/23 | BB+ | 478,950 | |||||||||||||||
250 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 236,250 | |||||||||||||||
765 | Total Chemicals | 715,200 | ||||||||||||||||||
Commercial Services & Supplies – 0.0% | ||||||||||||||||||||
124 | RR Donnelley & Sons Company | 7.875% | 3/15/21 | B– | 124,000 | |||||||||||||||
Construction Materials – 0.0% | ||||||||||||||||||||
300 | Cemex SAB de CV, 144A | 5.700% | 1/11/25 | BB | 287,628 | |||||||||||||||
Containers & Packaging – 0.0% | ||||||||||||||||||||
175 | Graphic Packaging International LLC | 4.875% | 11/15/22 | BB+ | 172,375 | |||||||||||||||
Diversified Telecommunication Services – 0.0% | ||||||||||||||||||||
200 | CenturyLink Inc., (4) | 6.750% | 12/01/23 | BB | 192,750 | |||||||||||||||
Health Care Providers & Services – 0.4% | ||||||||||||||||||||
200 | CHS/Community Health Systems Inc., (4) | 5.125% | 8/01/21 | B | 185,500 | |||||||||||||||
500 | HCA Inc. | 4.250% | 10/15/19 | BBB– | 498,750 | |||||||||||||||
1,715 | Mayo Clinic | 3.774% | 11/15/43 | AA | 1,676,444 | |||||||||||||||
2,415 | Total Health Care Providers & Services | 2,360,694 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||
475 | 1011778 BC ULC / New Red Finance Inc., 144A | 4.250% | 5/15/24 | Ba3 | 437,385 | |||||||||||||||
Media – 0.0% | ||||||||||||||||||||
200 | CCO Holdings LLC / CCO Holdings Capital Corporation | 5.125% | 2/15/23 | BB+ | 195,000 | |||||||||||||||
Metals & Mining – 0.1% | ||||||||||||||||||||
470 | Freeport-McMoRan Inc. | 3.875% | 3/15/23 | BB+ | 434,750 | |||||||||||||||
90 | Hudbay Minerals Inc., 144A | 7.250% | 1/15/23 | B+ | 88,875 | |||||||||||||||
560 | Total Metals & Mining | 523,625 |
69
Nuveen Inflation Protected Securities Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Mortgage Real Estate Investment Trusts – 0.1% | ||||||||||||||||||||
$ | 475 | Starwood Property Trust Inc. | 5.000% | 12/15/21 | BB– | $ | 466,687 | |||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||
150 | Targa Resources Partners LP / Targa Resources Partners Finance Corporation | 4.250% | 11/15/23 | BB | 138,937 | |||||||||||||||
Real Estate Management & Development – 0.1% | ||||||||||||||||||||
200 | Realogy Group LLC / RealogyCo-Issuer Corporation, 144A | 5.250% | 12/01/21 | B1 | 190,000 | |||||||||||||||
400 | VEREIT Operating Partnership LP | 3.000% | 2/06/19 | BBB– | 399,760 | |||||||||||||||
600 | Total Real Estate Management & Development | 589,760 | ||||||||||||||||||
Road & Rail – 0.0% | ||||||||||||||||||||
255 | Hertz Corporation, 144A | 7.625% | 6/01/22 | B+ | 240,338 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 0.1% | ||||||||||||||||||||
500 | NCR Corporation | 5.000% | 7/15/22 | BB | 471,250 | |||||||||||||||
Wireless Telecommunication Services – 0.2% | ||||||||||||||||||||
400 | CenturyLink Inc. | 5.625% | 4/01/20 | BB | 398,000 | |||||||||||||||
200 | Sprint Communications Inc., 144A | 7.000% | 3/01/20 | BB | 205,000 | |||||||||||||||
400 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BBB– | 380,000 | |||||||||||||||
1,000 | Total Wireless Telecommunication Services | 983,000 | ||||||||||||||||||
$ | 9,995 | Total Corporate Bonds (cost $10,019,784) | 9,622,001 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 0.3% | ||||||||||||||||||||
Canada – 0.3% | ||||||||||||||||||||
$ | 1,500 | Quebec Province | 7.500% | 7/15/23 | Aa2 | $ | 1,777,001 | |||||||||||||
$ | 1,500 | Total Sovereign Debt (cost $1,782,075) | 1,777,001 | |||||||||||||||||
Total Long-Term Investments (cost $593,104,297) | 576,613,469 | |||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.1% |
| |||||||||||||||||||
Money Market Funds – 0.1% | ||||||||||||||||||||
395,375 | First American Government Obligations Fund, Class X, (5) | 2.355% (6) | $ | 395,375 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $395,375) |
| 395,375 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 0.5% | ||||||||||||||||||||
Money Market Funds – 0.5% | ||||||||||||||||||||
3,099,786 | First American Treasury Obligations Fund, Class Z | 2.358% (6) | $ | 3,099,786 | ||||||||||||||||
Total Short-Term Investments (cost $3,099,786) | 3,099,786 | |||||||||||||||||||
Total Investments (cost $596,599,458) – 99.9% | 580,108,630 | |||||||||||||||||||
Other Assets Less Liabilities – 0.1% (7) | 869,549 | |||||||||||||||||||
Net Assets – 100% | $ | 580,978,179 |
70
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. Treasury2-Year Note | Short | (119 | ) | 3/19 | $ | (13,520,099 | ) | $ | (13,647,813 | ) | $ | (127,714 | ) | $ | (29,750 | ) | ||||||||||||
U.S. Treasury5-Year Note | Short | (144 | ) | 3/19 | (30,382,534 | ) | (30,573,000 | ) | (190,466 | ) | (20,250 | ) | ||||||||||||||||
U.S. Treasury10-Year Note | Long | 152 | 3/19 | 18,262,606 | 18,546,375 | 283,769 | 59,662 | |||||||||||||||||||||
U.S. Treasury Long Bond | Long | 31 | 3/19 | 4,417,486 | 4,526,000 | 108,514 | 14,531 | |||||||||||||||||||||
Total | $ | (21,222,541 | ) | $ | (21,148,438 | ) | $ | 74,103 | $ | 24,193 | ||||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 74,193 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (50,000 | ) |
* | The aggregate notional amount of long and short-positions is $22,680,092 and $(43,902,633), respectively. |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industrysub-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 industrysub-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 $378,250. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(6) | The rate shown is the annualizedseven-day subsidized yield as of the end of the reporting period. |
(7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certainover-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 |
See accompanying notes to financial statements.
71
Nuveen Short Term Bond Fund
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 97.3% | ||||||||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 46.3% | ||||||||||||||||||||
$ | 1,531 | 321 Henderson Receivables I LLC, Series HENDR2005-1A A1, 144A,(1-Month LIBOR reference rate + 0.230% spread), (3) | 2.685% | 11/15/40 | AAA | $ | 1,457,553 | |||||||||||||
1,135 | 321 Henderson Receivables I LLC, Series HENDR2006-4A A1, 144A,(1-Month LIBOR reference rate + 0.200% spread), (3) | 2.655% | 12/15/41 | AAA | 1,113,962 | |||||||||||||||
392 | ACE Securities Corp Manufactured Housing Trust Series2003-MH1, Series ACE2003-MH1 M1, 144A | 6.500% | 5/15/29 | AA | 420,799 | |||||||||||||||
1,766 | American Express Credit Account Master Trust, Series AMXCA2014-1 A,(1-Month LIBOR reference rate + 0.370% spread), (3) | 2.825% | 12/15/21 | AAA | 1,767,142 | |||||||||||||||
2,317 | Asset Backed Securities Corp Home Equity Loan Trust Series2002-HE1, Series ABSHE2002-HE1 M1,(1-Month LIBOR reference rate + 1.650% spread), (3) | 4.105% | 3/15/32 | BBB | 2,345,440 | |||||||||||||||
2,455 | Avid Automobile Receivables Trust2018-1, Series AVID2018-1 A, 144A | 2.840% | 8/15/23 | A | 2,437,774 | |||||||||||||||
2,915 | Bank of The West Auto Trust2017-1, Series BWSTA2017-1 A3, 144A | 2.110% | 1/15/23 | AAA | 2,879,513 | |||||||||||||||
1,062 | BBCMS Trust2014-BXO, Series BBCMS2014-BXO D, 144A,(1-Month LIBOR reference rate + 3.000% spread), (3) | 5.455% | 8/16/27 | AAA | 1,062,679 | |||||||||||||||
3,000 | BBCMS Trust2015-STP, Series BBCMS2015-STP C, 144A | 4.284% | 9/10/28 | A– | 3,007,688 | |||||||||||||||
931 | Bear Stearns Asset Backed Securities Trust2005-SD1, Series BSABS2005-SD1 1M3,(1-Month LIBOR reference rate + 1.230% spread), (3) | 3.736% | 8/25/43 | A | 925,880 | |||||||||||||||
2,375 | Cabela’s Credit Card Master Note Trust, Series CABMT2014-2 A,(1-Month LIBOR reference rate + 0.450% spread), (3) | 2.905% | 7/15/22 | AAA | 2,376,158 | |||||||||||||||
2,655 | Capital One Multi-Asset Execution Trust, Series COMET2014-A3 A3,(1-Month LIBOR reference rate + 0.380% spread), (3) | 2.835% | 1/18/22 | AAA | �� | 2,655,251 | ||||||||||||||
2,500 | Capital One Multi-Asset Execution Trust, Series COMET2016-A2 A2,(1-Month LIBOR reference rate + 0.630% spread), (3) | 3.085% | 2/15/24 | AAA | 2,513,839 | |||||||||||||||
3,140 | Carmax Auto Owner Trust2018-4, Series CARMX2018-4 A3 | 3.360% | 9/15/23 | AAA | 3,161,002 | |||||||||||||||
1,403 | Carnow Auto Receivables Trust2017-1, Series CNART2017-1A A, 144A | 2.920% | 9/15/22 | A | 1,396,583 | |||||||||||||||
830 | Cascade Funding Mortgage Trust, Series CFMT2018-RM1 A1, 144A | 4.580% | 6/25/48 | N/R | 818,651 | |||||||||||||||
4,000 | Chase Issuance Trust, Series CHAIT2016-A3 A3,(1-Month LIBOR reference rate + 0.550% spread), (3) | 3.005% | 6/15/23 | AAA | 4,019,706 | |||||||||||||||
2,443 | CIG AUTO RECEIVABLES TRUST2017-1, Series CIGAR2017-1A A, 144A | 2.710% | 5/15/23 | Aa2 | 2,428,306 | |||||||||||||||
2,000 | Citibank Credit Card Issuance Trust, Series CCCIT2017-A4 A4,(1-Month LIBOR reference rate + 0.220% spread), (3) | 2.603% | 4/07/22 | AAA | 2,000,001 | |||||||||||||||
73 | Citicorp Mortgage Securities Trust Series2006-1, Series CMSI2006-1 5A1 | 5.500% | 2/25/26 | N/R | 72,571 | |||||||||||||||
2,000 | Cold Storage Trust 2017-ICE3, Series COLD 2017-ICE3 A, 144A,(1-Month LIBOR reference rate + 1.000% spread), (3) | 3.455% | 4/15/36 | AAA | 1,964,242 | |||||||||||||||
1,000 | Commercial Mortgage Lease-Backed Certificates Series2001-CMLB-1, Series CMLBC 2001-CMLB C, 144A | 7.956% | 6/20/31 | AA+ | 1,079,507 | |||||||||||||||
1,447 | Conn’s Receivables Funding2018-A LLC, Series CONN2018-A A, 144A | 3.250% | 7/17/23 | BBB | 1,447,118 | |||||||||||||||
271 | Credit Suisse First Boston Mortgage Securities Corp, Series CSFB2003-23 3A4 | 5.750% | 9/25/33 | AA+ | 282,685 | |||||||||||||||
1,368 | Credit-Based Asset Servicing & Securitization LLC, Series CBASS2007-SP1 A4, 144A | 5.582% | 12/25/37 | AA | 1,389,356 |
72
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 2,316 | CSMC2017-HL2 Trust, Series CSMC2017-HL2 A3, 144A | 3.500% | 10/25/47 | AAA | $ | 2,284,311 | |||||||||||||
2,071 | Deephaven Residential Mortgage Trust2018-4, Series DRMT2018-4A A1, 144A | 4.080% | 10/25/58 | AAA | 2,085,479 | |||||||||||||||
3,500 | Discover Card Execution Note Trust, Series DCENT2018-A3 A3,(1-Month LIBOR reference rate + 0.230% spread), (3) | 2.685% | 12/15/23 | AAA | 3,488,227 | |||||||||||||||
2,469 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2I, 144A,(3-Month LIBOR reference rate + 1.250% spread), (3) | 3.740% | 7/25/47 | BBB+ | 2,466,429 | |||||||||||||||
2,000 | Fannie Mae Connecticut Avenue Securities, Series CAS2014-C02 1M2,(1-Month LIBOR reference rate + 2.600% spread), (3) | 5.106% | 5/28/24 | BBB– | 2,095,251 | |||||||||||||||
2,063 | Fannie Mae Connecticut Avenue Securities, Series CAS2017-C03 1M1,(1-Month LIBOR reference rate + 0.950% spread), (3) | 3.456% | 10/25/29 | Baa3 | 2,064,946 | |||||||||||||||
79 | Fannie Mae Interest Strip, Series FNS 366 25 | 5.000% | 9/01/24 | N/R | 2,480 | |||||||||||||||
2,093 | Fannie Mae Pool MA2869 | 2.500% | 1/01/27 | N/R | 2,071,985 | |||||||||||||||
2,451 | Fannie Mae Pool MA3220 | 2.500% | 12/01/27 | N/R | 2,425,567 | |||||||||||||||
6 | Fannie Mae REMICS, Series FNR1992-150 MA | 5.500% | 9/25/22 | N/R | 6,642 | |||||||||||||||
86 | Fannie Mae REMICS, Series FNR2004-90 GF,(1-Month LIBOR reference rate + 0.300% spread), (3) | 2.806% | 11/25/34 | N/R | 86,527 | |||||||||||||||
10 | Fannie Mae REMICS, Series FNR2011-6 BA | 2.750% | 6/25/20 | N/R | 10,471 | |||||||||||||||
1,170 | Fifth Third Auto Trust2017-1, Series FITAT2017-1 A3 | 1.800% | 2/15/22 | AAA | 1,157,273 | |||||||||||||||
2,097 | Flagstar Mortgage Trust2017-2, Series FSMT2017-2 A5, 144A | 3.500% | 10/25/47 | Aaa | 2,085,512 | |||||||||||||||
2,093 | Flagstar Mortgage Trust2018-4, Series FSMT2018-4 A4, 144A | 4.000% | 7/25/48 | Aaa | 2,105,132 | |||||||||||||||
2,600 | Ford Credit Auto Owner Trust 2015-REV2, Series FORDR2015-2 A, 144A | 2.440% | 1/15/27 | AAA | 2,578,209 | |||||||||||||||
2,300 | Ford Credit Auto Owner Trust 2016-REV1, Series FORDR2016-1 A, 144A | 2.310% | 8/15/27 | AAA | 2,268,503 | |||||||||||||||
2,775 | Ford Credit Auto Owner Trust, Series FORDO2017-C A3 | 2.010% | 3/15/22 | AAA | 2,742,397 | |||||||||||||||
21 | Freddie Mac Gold Pool M30035 | 4.500% | 4/01/22 | Aaa | 21,121 | |||||||||||||||
1,971 | Freddie Mac Multifamily Structured Pass Through Certificates, Series FHMS KLH1 A,(1-Month LIBOR reference rate + 0.700% spread), (3) | 3.047% | 11/25/22 | Aaa | 1,977,812 | |||||||||||||||
1 | Freddie Mac REMICS, Series FHR 1022 J | 6.000% | 12/15/20 | Aaa | 744 | |||||||||||||||
117 | Freddie Mac REMICS, Series FHR 3780 FE,(1-Month LIBOR reference rate + 0.400% spread), (3) | 2.855% | 12/15/20 | Aaa | 117,712 | |||||||||||||||
1,804 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2017-HQA2 M1,(1-Month LIBOR reference rate + 0.800% spread), (3) | 3.306% | 12/26/29 | BBB– | 1,802,661 | |||||||||||||||
1,811 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2018-SPI1 M1, 144A | 3.746% | 2/25/48 | BBB– | 1,803,480 | |||||||||||||||
1,383 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2018-SPI3 M1, 144A | 4.168% | 8/25/48 | BBB– | 1,386,589 | |||||||||||||||
1,000 | Freddie Mac Structured Agency Credit Risk Debt Notes, Series STACR 2018-SPI4 M1, 144A | 4.461% | 11/25/48 | BBB– | 998,511 | |||||||||||||||
1,888 | Galton Funding Mortgage Trust2018-2, Series GFMT2018-2 A41, 144A | 4.500% | 10/25/58 | AAA | 1,914,876 | |||||||||||||||
1,029 | GLS Auto Receivables Trust2017-1, Series GCAR2017-1A A2, 144A | 2.670% | 4/15/21 | A | 1,026,139 | |||||||||||||||
1,415 | GLS Auto Receivables Trust2018-1, Series GCAR2018-1A A, 144A | 2.820% | 7/15/22 | A | 1,409,580 | |||||||||||||||
2,480 | GM Financial Consumer Automobile Receivables Trust2018-4, Series GMCAR2018-4 A3 | 3.210% | 10/16/23 | AAA | 2,493,479 |
73
Nuveen Short Term Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 437 | GS Mortgage Securities Trust2010-C1, Series GSMS2010-C1 A1, 144A | 3.679% | 8/12/43 | Aaa | $ | 437,670 | |||||||||||||
497 | IMac Home Equity Loan Trust1998-3, Series IMCHE1998-3 A7 | 6.720% | 8/20/29 | AA | 500,016 | |||||||||||||||
1,292 | Invitation Homes 2017-SFR2 Trust, Series IHSFR 2017-SFR2 A, 144A,(1-Month LIBOR reference rate + 0.850% spread), (3) | 3.305% | 12/19/36 | Aaa | 1,276,637 | |||||||||||||||
3,238 | Invitation Homes 2018-SFR1 Trust, Series IHSFR 2018-SFR1 A, 144A,(1-Month LIBOR reference rate + 0.700% spread), (3) | 3.155% | 3/19/37 | Aaa | 3,170,028 | |||||||||||||||
2,076 | Invitation Homes 2018-SFR2 Trust, Series IHSFR 2018-SFR2 A, 144A,(1-Month LIBOR reference rate + 0.900% spread), (3) | 3.355% | 6/18/37 | Aaa | 2,052,245 | |||||||||||||||
2,725 | Invitation Homes 2018-SFR3 Trust, Series IHSFR 2018-SFR3 A, 144A,(1-Month LIBOR reference rate + 1.000% spread), (3) | 3.455% | 7/17/37 | Aaa | 2,708,905 | |||||||||||||||
1,593 | Invitation Homes 2018-SFR4 Trust, Series IHSFR 2018-SFR4 A, 144A,(1-Month LIBOR reference rate + 1.100% spread), (3) | 3.555% | 1/19/38 | Aaa | 1,605,680 | |||||||||||||||
2,970 | JP Morgan Chase Commercial Mortgage Securities Trust 2017-MAUI, Series JPMCC 2017-MAUI A, 144A,(1-Month LIBOR reference rate + 0.830% spread), (3) | 3.217% | 7/17/34 | AAA | 2,937,543 | |||||||||||||||
2,605 | JP Morgan Chase Commercial Mortgage Securities Trust 2018-BCON, Series JPMCC 2018-BCON A, 144A | 3.735% | 1/07/31 | AAA | 2,646,322 | |||||||||||||||
2,661 | Jimmy Johns Funding LLC, Series JIMMY2017-1A A2I, 144A | 3.610% | 7/30/47 | BBB | 2,653,781 | |||||||||||||||
3,334 | JP Morgan Chase Commercial Mortgage Securities Trust2010-C2, Series JPMCC2010-C2 A3, 144A | 4.070% | 11/15/43 | AAA | 3,373,368 | |||||||||||||||
1,904 | JP Morgan Chase Commercial Mortgage Securities Trust2011-C3, Series JPMCC2011-C3 A4, 144A | 4.717% | 2/16/46 | AAA | 1,945,027 | |||||||||||||||
2,008 | Mid-State Capital Trust2010-1, Series MDST2010-1 B, 144A | 7.000% | 12/15/45 | A | 2,125,863 | |||||||||||||||
1,335 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2017-T1 AT1, 144A | 3.214% | 2/15/51 | AAA | 1,332,223 | |||||||||||||||
1,759 | New Residential Mortgage LLC 2018-FNT2, Series NZES 2018-FNT2 D, 144A | 4.920% | 7/25/24 | N/R | 1,770,814 | |||||||||||||||
1,894 | New Residential Mortgage LLC, Series NZES 2018-FNT1 D, 144A | 4.690% | 5/25/23 | N/R | 1,905,516 | |||||||||||||||
1,419 | New Residential Mortgage Loan Trust2014-2, Series NRZT2014-2A A3, 144A | 3.750% | 5/25/54 | AAA | 1,422,299 | |||||||||||||||
841 | New Residential Mortgage Loan Trust2014-3, Series NRZT2014-3A AFX3, 144A | 3.750% | 11/25/54 | AA | 840,200 | |||||||||||||||
1,412 | New Residential Mortgage Loan Trust2015-1, Series NRZT2015-1A A3, 144A | 3.750% | 5/28/52 | Aaa | 1,413,723 | |||||||||||||||
1,578 | New Residential Mortgage Loan Trust2016-1, Series NRZT2016-1A A1, 144A | 3.750% | 3/25/56 | AAA | 1,573,433 | |||||||||||||||
1,810 | New Residential Mortgage Loan Trust2017-1, Series NRZT2017-1A A1, 144A | 4.000% | 2/25/57 | AA+ | 1,820,685 | |||||||||||||||
2,007 | New Residential Mortgage Loan Trust2018-5, Series NRZT2018-5A A1, 144A | 4.750% | 12/25/57 | Aaa | 2,056,521 | |||||||||||||||
2,709 | New Residential Mortgage Loan Trust 2018-NQM1, Series NRZT 2018-NQM1 A1, 144A | 3.986% | 11/25/48 | AAA | 2,749,510 | |||||||||||||||
2,300 | New Residential Mortgage Loan Trust2018-1, Series NRZT2018-1A A1A, 144A | 4.000% | 12/25/57 | AA– | 2,310,615 | |||||||||||||||
3,400 | Nissan Auto Lease Trust2018-A, Series NALT2018-A A3 | 3.250% | 9/15/21 | AAA | 3,404,109 | |||||||||||||||
1,515 | Nissan Auto Receivables2017-C Owner Trust, Series NAROT2017-C A3 | 2.120% | 4/18/22 | Aaa | 1,496,135 | |||||||||||||||
2,430 | NRZ Advance Receivables Trust Advance Receivables Backed2016-T3, Series NRART2016-T3 AT3, 144A | 2.833% | 10/16/51 | AAA | 2,396,678 | |||||||||||||||
2,075 | OBX 2018-EXP1 Trust, Series OBX 2018-EXP1 1A6, 144A | 4.500% | 4/25/48 | AAA | 2,104,003 | |||||||||||||||
2,406 | OBX 2018-EXP2 Trust, Series OBX 2018-EXP2 1A1, 144A | 4.000% | 7/25/58 | AAA | 2,402,725 | |||||||||||||||
3,185 | Ocwen Master Advance Receivables Trust, Series OMART2016-T2 AT2, 144A | 2.722% | 8/16/49 | AAA | 3,171,942 |
74
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 2,200 | Ocwen Master Advance Receivables Trust, Series OMART2018-T2 AT2, 144A | 3.598% | 8/15/50 | AAA | $ | 2,205,302 | |||||||||||||
500 | OneMain Financial Issuance Trust2015-1, Series OMFIT2015-1A B, 144A | 3.850% | 3/18/26 | AAA | 501,358 | |||||||||||||||
2,000 | OneMain Financial Issuance Trust2015-2, Series OMFIT2015-2A C, 144A | 4.320% | 7/18/25 | AA | 2,001,393 | |||||||||||||||
2,500 | OneMain Financial Issuance Trust2016-2, Series OMFIT2016-2A B, 144A | 5.940% | 3/20/28 | AAA | 2,539,069 | |||||||||||||||
2,985 | Park Place Securities Inc. Asset-Backed Pass-Through Certificates Series2005-WCH, Series PPSI 2005-WCH1 M4,(1-Month LIBOR reference rate + 1.245% spread), (3) | 3.751% | 1/25/35 | A | 2,981,763 | |||||||||||||||
1,845 | Planet Fitness Master Issuer LLC, Series PLNT2018-1A A2I, 144A | 4.262% | 9/05/48 | BBB– | 1,853,052 | |||||||||||||||
2,213 | Progress Residential 2017-SFR1 Trust, Series PROG 2017-SFR1 A, 144A | 2.768% | 8/17/34 | Aaa | 2,169,956 | |||||||||||||||
1,654 | Prosper Marketplace Issuance Trust Series2018-1, Series PMIT2018-1A A, 144A | 3.110% | 6/17/24 | A– | 1,651,484 | |||||||||||||||
1,688 | Prosper Marketplace Issuance Trust Series2018-2, Series PMIT2018-2A A, 144A | 3.350% | 10/15/24 | A3 | 1,685,107 | |||||||||||||||
885 | Sequoia Mortgage Trust2017-CH2, Series SEMT2017-CH2 A10, 144A | 4.000% | 12/25/47 | Aaa | 887,863 | |||||||||||||||
1,704 | Sequoia Mortgage Trust2018-CH4, Series SEMT2018-CH4 A10, 144A | 4.500% | 10/25/48 | Aaa | 1,737,569 | |||||||||||||||
2,200 | SoFi Professional Loan Program2016-C LLC, Series SOFI2016-C A2B, 144A | 2.360% | 12/27/32 | Aaa | 2,155,782 | |||||||||||||||
1,440 | SoFi Professional Loan Program2016-D LLC, Series SOFI2016-D A2B, 144A | 2.340% | 4/25/33 | Aaa | 1,414,182 | |||||||||||||||
292 | Sofi Professional Loan Program2016-E LLC, Series SOFI2016-E A2A, 144A | 1.630% | 1/25/36 | Aaa | 291,773 | |||||||||||||||
832 | SoFi Professional Loan Program2017-A LLC, Series SOFI2017-A A2A, 144A | 1.550% | 3/26/40 | AAA | 825,404 | |||||||||||||||
2,045 | SPS Servicer Advance Receivables Trust, Series SPART2018-T1 AT1, 144A | 3.620% | 10/17/50 | AAA | 2,053,405 | |||||||||||||||
3,000 | STACR Trust 2018-DNA2, Series STACR 2018-DNA2 M1, 144A,(1-Month LIBOR reference rate + 0.800% spread), (3) | 3.306% | 12/26/30 | BBB+ | 2,996,529 | |||||||||||||||
1,100 | Synchrony Card Issuance Trust, Series SYNIT2018-A1 A | 3.380% | 9/15/24 | AAA | 1,109,747 | |||||||||||||||
1,061 | TCF Auto Receivables Owner Trust2016-1, Series TCFAT2016-1A A3, 144A | 1.710% | 4/15/21 | AAA | 1,056,124 | |||||||||||||||
1,109 | TCF Auto Receivables Owner Trust2016-PT1, Series TCFAT 2016-PT1A A, 144A | 1.930% | 6/15/22 | AAA | 1,097,563 | |||||||||||||||
2,528 | TCF Auto Receivables Owner Trust2016-PT1, Series TCFAT 2016-PT1A B, 144A | 2.920% | 10/17/22 | Aaa | 2,510,519 | |||||||||||||||
3,000 | Toyota Auto Receivables2017-B Owner Trust, Series TAOT2017-B A4 | 2.050% | 9/15/22 | AAA | 2,946,164 | |||||||||||||||
1,990 | Toyota Auto Receivables2018-D Owner Trust, Series TAOT2018-D A3 | 3.180% | 3/15/23 | AAA | 2,005,750 | |||||||||||||||
2,170 | Tricon American Homes 2017-SFR1 Trust, Series TAH 2017-SFR1 A, 144A | 2.716% | 9/19/34 | Aaa | 2,096,172 | |||||||||||||||
740 | Veros Automobile Receivables Trust2017-1, Series VEROS2017-1 A, 144A | 2.840% | 4/17/23 | N/R | 737,748 | |||||||||||||||
1,371 | Verus Securitization Trust2018-3, Series VERUS2018-3 A1, 144A | 4.108% | 10/25/58 | AAA | 1,362,026 | |||||||||||||||
1,565 | VNDO 2013-PENN Mortgage Trust, Series VNDO 2013-PENN A, 144A | 3.808% | 12/13/29 | AAA | 1,579,311 | |||||||||||||||
8 | Wells Fargo Mortgage Backed Securities 2005-AR16 Trust, Series WFMBS2005-AR16 3A2 | 4.422% | 3/25/35 | AA+ | 8,087 | |||||||||||||||
2,278 | Wendy’s Funding LLC, Series WEN2015-1A A2II, 144A | 4.080% | 6/15/45 | BBB | 2,276,959 | |||||||||||||||
2,000 | WFRBS Commercial Mortgage Trust2011-C3, Series WFRBS2011-C3 A4, 144A | 4.375% | 3/17/44 | Aaa | 2,040,523 | |||||||||||||||
2,500 | World Omni Auto Receivables Trust2018-C, Series WOART2018-C A2 | 2.800% | 1/18/22 | AAA | 2,495,169 | |||||||||||||||
$ | 206,926 | Total Asset-Backed and Mortgage-Backed Securities (cost $207,804,479) | 206,878,520 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
CORPORATE BONDS – 37.1% | ||||||||||||||||||||
Aerospace & Defense – 0.4% | ||||||||||||||||||||
$ | 1,580 | L3 Technologies Inc. | 4.950% | 2/15/21 | BBB– | $ | 1,616,773 |
75
Nuveen Short Term Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Airlines – 0.6% | ||||||||||||||||||||
$ | 207 | Delta Air Lines2011-1 Class A Pass Through Trust | 5.300% | 4/15/19 | A+ | $ | 208,424 | |||||||||||||
702 | Delta Air Lines2012-1 Class B Pass Through Trust, 144A | 6.875% | 5/07/19 | BBB+ | 710,728 | |||||||||||||||
808 | Northwest Airlines2007-1 Class A Pass Through Trust | 7.027% | 11/01/19 | A+ | 829,731 | |||||||||||||||
270 | US Airways2001-1G Pass Through Trust | 7.076% | 3/20/21 | A+ | 282,566 | |||||||||||||||
1,987 | Total Airlines | 2,031,449 | ||||||||||||||||||
Auto Components – 0.2% | ||||||||||||||||||||
853 | American Axle & Manufacturing Inc. | 6.625% | 10/15/22 | B | 844,470 | |||||||||||||||
Automobiles – 1.7% | ||||||||||||||||||||
1,540 | American Honda Finance Corporation | 2.650% | 2/12/21 | A+ | 1,522,602 | |||||||||||||||
2,460 | BMW US Capital LLC, 144A | 3.100% | 4/12/21 | A+ | 2,436,092 | |||||||||||||||
1,950 | Daimler Finance North America LLC, 144A | 3.700% | 5/04/23 | A | 1,941,103 | |||||||||||||||
2,000 | General Motors Financial Company Inc. | 3.200% | 7/13/20 | BBB | 1,974,854 | |||||||||||||||
7,950 | Total Automobiles | 7,874,651 | ||||||||||||||||||
Banks – 5.1% | ||||||||||||||||||||
1,370 | Barclays PLC | 2.750% | 11/08/19 | A | 1,360,032 | |||||||||||||||
3,280 | BB&T Corporation | 2.450% | 1/15/20 | A+ | 3,256,750 | |||||||||||||||
1,645 | BNP Paribas SA | 2.375% | 5/21/20 | Aa3 | 1,626,801 | |||||||||||||||
1,900 | Fifth Third BanCorporation | 2.875% | 7/27/20 | A– | 1,888,234 | |||||||||||||||
1,975 | HSBC USA Inc. | 2.750% | 8/07/20 | AA– | 1,953,182 | |||||||||||||||
1,945 | PNC Bank NA | 2.500% | 1/22/21 | A+ | 1,919,149 | |||||||||||||||
2,160 | Santander UK PLC | 2.125% | 11/03/20 | Aa3 | 2,109,220 | |||||||||||||||
2,000 | Societe Generale SA, 144A | 2.500% | 4/08/21 | A1 | 1,954,644 | |||||||||||||||
1,720 | SunTrust Banks Inc. | 2.900% | 3/03/21 | A– | 1,705,062 | |||||||||||||||
5,135 | Wells Fargo & Company | 2.600% | 7/22/20 | A+ | 5,084,391 | |||||||||||||||
23,130 | Total Banks | 22,857,465 | ||||||||||||||||||
Beverages – 0.5% | ||||||||||||||||||||
2,180 | Anheuser-Busch InBev Finance Inc. | 2.650% | 2/01/21 | A– | 2,142,734 | |||||||||||||||
Biotechnology – 0.8% | ||||||||||||||||||||
1,375 | Biogen Inc. | 2.900% | 9/15/20 | A– | 1,366,139 | |||||||||||||||
2,285 | Celgene Corporation | 2.875% | 8/15/20 | BBB+ | 2,268,791 | |||||||||||||||
3,660 | Total Biotechnology | 3,634,930 | ||||||||||||||||||
Capital Markets – 3.5% | ||||||||||||||||||||
2,075 | Charles Schwab Corporation/The | 3.250% | 5/21/21 | A | 2,085,050 | |||||||||||||||
1,300 | Deutsche Bank AG/New York NY | 3.150% | 1/22/21 | BBB+ | 1,256,361 | |||||||||||||||
1,870 | Goldman Sachs Group Inc./The | 2.750% | 9/15/20 | A | 1,850,335 | |||||||||||||||
4,000 | Goldman Sachs Group Inc./The | 2.875% | 2/25/21 | A | 3,931,475 | |||||||||||||||
603 | Lazard Group LLC | 4.250% | 11/14/20 | A– | 610,903 | |||||||||||||||
5,995 | Morgan Stanley | 2.650% | 1/27/20 | A | 5,949,326 | |||||||||||||||
15,843 | Total Capital Markets | 15,683,450 |
76
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Chemicals – 0.5% | ||||||||||||||||||||
$ | 361 | Eastman Chemical Company | 2.700% | 1/15/20 | BBB | $ | 358,300 | |||||||||||||
1,935 | LyondellBasell Industries NV | 5.000% | 4/15/19 | BBB+ | 1,937,107 | |||||||||||||||
2,296 | Total Chemicals | 2,295,407 | ||||||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||||||
2,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust | 3.950% | 2/01/22 | BBB– | 1,964,061 | |||||||||||||||
Consumer Finance – 1.7% | ||||||||||||||||||||
2,750 | American Express Credit Corporation | 2.375% | 5/26/20 | A2 | 2,720,758 | |||||||||||||||
845 | Capital One Financial Corporation | 2.500% | 5/12/20 | A– | 833,945 | |||||||||||||||
1,355 | Capital One Financial Corporation | 4.750% | 7/15/21 | A– | 1,390,167 | |||||||||||||||
1,555 | Discover Bank | 3.200% | 8/09/21 | BBB+ | 1,538,782 | |||||||||||||||
1,250 | Navient Corporation | 5.000% | 10/26/20 | BB | 1,196,875 | |||||||||||||||
7,755 | Total Consumer Finance | 7,680,527 | ||||||||||||||||||
Containers & Packaging – 0.3% | ||||||||||||||||||||
1,240 | Packaging Corporation of America | 2.450% | 12/15/20 | BBB | 1,217,252 | |||||||||||||||
Diversified Financial Services – 5.3% | ||||||||||||||||||||
8,540 | Bank of America Corporation | 2.250% | 4/21/20 | A+ | 8,447,557 | |||||||||||||||
4,000 | Citigroup Inc. | 2.650% | 10/26/20 | A | 3,946,067 | |||||||||||||||
1,720 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,757,308 | |||||||||||||||
2,020 | General Electric Company | 4.625% | 1/07/21 | BBB+ | 2,025,152 | |||||||||||||||
1,445 | JPMorgan Chase & Company | 2.250% | 1/23/20 | AA– | 1,430,448 | |||||||||||||||
5,780 | JPMorgan Chase & Company | 4.625% | 5/10/21 | AA– | 5,948,130 | |||||||||||||||
23,505 | Total Diversified Financial Services | 23,554,662 | ||||||||||||||||||
Diversified Telecommunication Services – 1.7% | ||||||||||||||||||||
4,440 | AT&T Inc. | 2.800% | 2/17/21 | A– | 4,382,349 | |||||||||||||||
1,290 | Occidental Petroleum Corporation | 4.100% | 2/01/21 | A | 1,312,250 | |||||||||||||||
1,815 | Verizon Communications Inc. | 3.450% | 3/15/21 | A– | 1,826,903 | |||||||||||||||
7,545 | Total Diversified Telecommunication Services | 7,521,502 | ||||||||||||||||||
Electric Utilities – 0.8% | ||||||||||||||||||||
1,825 | Berkshire Hathaway Energy Company | 2.375% | 1/15/21 | A– | 1,799,990 | |||||||||||||||
2,000 | Exelon Generation Co LLC | 2.950% | 1/15/20 | BBB | 1,990,316 | |||||||||||||||
3,825 | Total Electric Utilities | 3,790,306 | ||||||||||||||||||
Energy Equipment & Services – 0.7% | ||||||||||||||||||||
1,700 | BP Capital Markets PLC | 2.521% | 1/15/20 | A1 | 1,694,286 | |||||||||||||||
1,595 | Schlumberger Holdings Corporation, 144A | 3.000% | 12/21/20 | AA– | 1,580,849 | |||||||||||||||
3,295 | Total Energy Equipment & Services | 3,275,135 | ||||||||||||||||||
Food & Staples Retailing – 0.7% | ||||||||||||||||||||
2,000 | CVS Health Corporation | 2.800% | 7/20/20 | BBB | 1,981,630 | |||||||||||||||
1,245 | Sysco Corporation | 2.600% | 10/01/20 | A3 | 1,231,355 | |||||||||||||||
3,245 | Total Food & Staples Retailing | 3,212,985 |
77
Nuveen Short Term Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Food Products – 1.2% | ||||||||||||||||||||
$ | 2,175 | Bunge Ltd Finance Corporation | 3.500% | 11/24/20 | BBB | $ | 2,169,311 | |||||||||||||
1,820 | General Mills Inc. | 3.200% | 4/16/21 | BBB | 1,810,416 | |||||||||||||||
1,635 | Kraft Heinz Foods Company | 2.800% | 7/02/20 | BBB | 1,620,570 | |||||||||||||||
5,630 | Total Food Products | 5,600,297 | ||||||||||||||||||
Health Care Equipment & Supplies – 0.2% | ||||||||||||||||||||
1,120 | Abbott Laboratories | 2.900% | 11/30/21 | Baa1 | 1,108,863 | |||||||||||||||
Health Care Providers & Services – 0.8% | ||||||||||||||||||||
1,500 | HCA Inc. | 4.250% | 10/15/19 | BBB– | 1,496,250 | |||||||||||||||
1,765 | UnitedHealth Group Inc. | 3.875% | 10/15/20 | A+ | 1,788,265 | |||||||||||||||
3,265 | Total Health Care Providers & Services | 3,284,515 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.7% | ||||||||||||||||||||
1,980 | Carnival Corporation | 3.950% | 10/15/20 | A– | 2,005,155 | |||||||||||||||
1,250 | MGM Resorts International | 6.750% | 10/01/20 | BB | 1,284,375 | |||||||||||||||
3,230 | Total Hotels, Restaurants & Leisure | 3,289,530 | ||||||||||||||||||
Insurance – 3.0% | ||||||||||||||||||||
2,415 | American International Group Inc. | 3.375% | 8/15/20 | BBB+ | 2,420,019 | |||||||||||||||
2,760 | Berkshire Hathaway Finance Corporation | 4.250% | 1/15/21 | AA | 2,830,875 | |||||||||||||||
1,500 | Hartford Financial Services Group Inc./The | 5.500% | 3/30/20 | BBB+ | 1,538,995 | |||||||||||||||
2,025 | Marsh & McLennan Cos Inc. | 2.350% | 3/06/20 | A | 2,006,795 | |||||||||||||||
1,500 | Metropolitan Life Global Funding I, 144A | 2.000% | 4/14/20 | AA– | 1,478,444 | |||||||||||||||
1,570 | Prudential Financial Inc. | 4.500% | 11/15/20 | A | 1,605,669 | |||||||||||||||
1,440 | Unum Group | 3.000% | 5/15/21 | BBB | 1,423,500 | |||||||||||||||
13,210 | Total Insurance | 13,304,297 | ||||||||||||||||||
Internet Software & Services – 0.4% | ||||||||||||||||||||
1,355 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 1,360,588 | |||||||||||||||
Machinery – 0.3% | ||||||||||||||||||||
1,365 | Ingersoll-Rand Luxembourg Finance SA | 2.625% | 5/01/20 | BBB | 1,351,444 | |||||||||||||||
Media – 1.1% | ||||||||||||||||||||
1,735 | 21st Century Fox America Inc., (4) | 4.500% | 2/15/21 | BBB+ | 1,781,251 | |||||||||||||||
2,000 | Charter Communications Operating LLC / Charter Communications Operating Capital | 3.579% | 7/23/20 | BBB– | 1,997,517 | |||||||||||||||
1,600 | Discovery Communications LLC | 5.050% | 6/01/20 | BBB– | 1,635,639 | |||||||||||||||
5,335 | Total Media | 5,414,407 | ||||||||||||||||||
Metals & Mining – 0.3% | ||||||||||||||||||||
1,250 | Arconic Inc. | 6.150% | 8/15/20 | BBB– | 1,275,090 | |||||||||||||||
Mortgage Real Estate Investment Trusts – 0.3% | ||||||||||||||||||||
750 | Starwood Property Trust Inc. | 5.000% | 12/15/21 | BB– | 736,875 |
78
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
$ | 1,635 | Sempra Energy | 2.900% | 2/01/23 | BBB+ | $ | 1,588,640 | |||||||||||||
Oil, Gas & Consumable Fuels – 1.0% | ||||||||||||||||||||
1,550 | Enterprise Products Operating LLC | 2.800% | 2/15/21 | BBB+ | 1,532,940 | |||||||||||||||
750 | Sabine Pass Liquefaction LLC | 5.625% | 2/01/21 | BBB– | 772,565 | |||||||||||||||
1,000 | Southwestern Energy Company, (4) | 5.800% | 1/23/20 | BB | 995,000 | |||||||||||||||
1,300 | Valero Energy Corporation | 6.125% | 2/01/20 | BBB | 1,337,831 | |||||||||||||||
4,600 | Total Oil, Gas & Consumable Fuels | 4,638,336 | ||||||||||||||||||
Specialty Retail – 0.4% | ||||||||||||||||||||
1,750 | Home Depot Inc./The | 2.625% | 6/01/22 | A | 1,731,566 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 0.4% | ||||||||||||||||||||
1,420 | Apple Inc. | 2.250% | 2/23/21 | AA+ | 1,403,315 | |||||||||||||||
500 | Dell Inc. | 5.875% | 6/15/19 | Ba2 | 501,875 | |||||||||||||||
1,920 | Total Technology Hardware, Storage & Peripherals | 1,905,190 | ||||||||||||||||||
Tobacco – 0.3% | ||||||||||||||||||||
1,465 | Reynolds American Inc. | 3.250% | 6/12/20 | BBB+ | 1,455,782 | |||||||||||||||
Trading Companies & Distributors – 0.3% | ||||||||||||||||||||
1,500 | Air Lease Corporation | 3.375% | 6/01/21 | BBB | 1,485,631 | |||||||||||||||
Wireless Telecommunication Services – 1.1% | ||||||||||||||||||||
1,570 | America Movil SAB de CV | 5.000% | 3/30/20 | A– | 1,597,039 | |||||||||||||||
1,500 | CenturyLink Inc. | 5.625% | 4/01/20 | BB | 1,492,500 | |||||||||||||||
2,205 | Vodafone Group PLC | 4.375% | 3/16/21 | BBB+ | 2,256,559 | |||||||||||||||
5,275 | Total Wireless Telecommunication Services | 5,346,098 | ||||||||||||||||||
$ | 166,544 | Total Corporate Bonds (cost $168,179,341) | 166,074,908 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 13.9% | ||||||||||||||||||||
$ | 3,200 | Federal Farm Credit Banks | 3.050% | 11/15/21 | Aaa | $ | 3,241,862 | |||||||||||||
9,000 | Federal Farm Credit Banks | 2.800% | 12/17/21 | Aaa | 9,054,144 | |||||||||||||||
5,500 | Federal Home Loan Bank Bonds | 1.500% | 1/17/20 | Aaa | 5,437,696 | |||||||||||||||
13,000 | Federal National Mortgage Association | 1.000% | 2/26/19 | Aaa | 12,970,100 | |||||||||||||||
4,525 | U.S. Treasury Notes | 1.000% | 8/31/19 | Aaa | 4,476,922 | |||||||||||||||
4,500 | U.S. Treasury Notes | 1.000% | 10/15/19 | Aaa | 4,443,223 | |||||||||||||||
4,000 | U.S. Treasury Notes | 1.750% | 11/30/19 | Aaa | 3,968,594 | |||||||||||||||
10,000 | U.S. Treasury Notes | 1.625% | 3/15/20 | Aaa | 9,888,009 | |||||||||||||||
1,500 | U.S. Treasury Notes | 2.125% | 6/30/21 | Aaa | 1,487,359 | |||||||||||||||
7,500 | U.S. Treasury Notes | 1.750% | 11/30/21 | Aaa | 7,348,401 | |||||||||||||||
$ | 62,725 | Total U.S. Government and Agency Obligations (cost $62,313,358) | 62,316,310 | |||||||||||||||||
Total Long-Term Investments (cost $438,297,178) | 435,269,738 |
79
Nuveen Short Term Bond Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.0% |
| |||||||||||||||||||
Money Market Funds – 0.0% | ||||||||||||||||||||
94,027 | First American Government Obligations Fund, Class X, (5) | 2.355% (6) | $ | 94,027 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $94,027) |
| 94,027 | ||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||
SHORT-TERM INVESTMENTS – 3.2% | ||||||||||||||||||||
Money Market Funds – 3.2% | ||||||||||||||||||||
14,121,428 | First American Treasury Obligations Fund, Class Z | 2.358% (6) | $ | 14,121,428 | ||||||||||||||||
Total Short-Term Investments (cost $14,121,428) | 14,121,428 | |||||||||||||||||||
Total Investments (cost $452,512,633) – 100.5% | 449,485,193 | |||||||||||||||||||
Other Assets Less Liabilities – (0.5)% (7) | (2,306,845) | |||||||||||||||||||
Net Assets – 100% | $ | 447,178,348 |
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. Treasury2-Year Note | Long | 200 | 3/19 | $ | 42,183,208 | $ | 42,462,500 | $ | 279,292 | $ | 28,125 | |||||||||||||||||
U.S. Treasury5-Year Note | Long | 117 | 3/19 | 13,200,065 | 13,418,437 | 218,372 | 29,250 | |||||||||||||||||||||
Total | $ | 55,383,273 | $ | 55,880,937 | $ | 497,664 | $ | 57,375 | ||||||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 57,375 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | — |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industrysub-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 industrysub-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 $89,505. |
(5) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
(6) | The rate shown is the annualizedseven-day subsidized yield as of the end of the reporting period. |
(7) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certainover-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 |
See accompanying notes to financial statements.
80
Nuveen Strategic Income Fund
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 99.2% | ||||||||||||||||||||
CORPORATE BONDS – 54.0% | ||||||||||||||||||||
Aerospace & Defense – 1.4% | ||||||||||||||||||||
$ | 2,785 | BAE Systems Holdings Inc., 144A | 3.850% | 12/15/25 | BBB | $ | 2,762,429 | |||||||||||||
930 | Bombardier Inc., 144A | 7.500% | 3/15/25 | B | 876,525 | |||||||||||||||
1,500 | General Dynamics Corporation | 2.625% | 11/15/27 | A+ | 1,384,000 | |||||||||||||||
3,380 | Rockwell Collins Inc. | 3.500% | 3/15/27 | BBB+ | 3,174,502 | |||||||||||||||
8,595 | Total Aerospace & Defense | 8,197,456 | ||||||||||||||||||
Air Freight & Logistics – 0.6% | ||||||||||||||||||||
2,280 | FedEx Corporation | 3.300% | 3/15/27 | BBB | 2,169,156 | |||||||||||||||
1,500 | XPO Logistics Inc., 144A | 6.500% | 6/15/22 | BB | 1,486,875 | |||||||||||||||
3,780 | Total Air Freight & Logistics | 3,656,031 | ||||||||||||||||||
Airlines – 1.1% | ||||||||||||||||||||
1,241 | American Airlines2013-2 Class B Pass Through Trust, 144A | 5.600% | 7/15/20 | BBB– | 1,250,310 | |||||||||||||||
904 | American Airlines2016-1 Class AA Pass Through Trust | 3.575% | 1/15/28 | AA+ | 888,154 | |||||||||||||||
2,000 | American Airlines Group Inc., 144A | 4.625% | 3/01/20 | BB– | 1,990,000 | |||||||||||||||
2,370 | Northwest Airlines2007-1 Class A Pass Through Trust | 7.027% | 11/01/19 | A+ | 2,434,672 | |||||||||||||||
6,515 | Total Airlines | 6,563,136 | ||||||||||||||||||
Auto Components – 0.7% | ||||||||||||||||||||
1,180 | American Axle & Manufacturing Inc. | 6.625% | 10/15/22 | B | 1,168,200 | |||||||||||||||
750 | American Axle & Manufacturing Inc., (3) | 6.250% | 4/01/25 | B | 682,500 | |||||||||||||||
2,000 | Lear Corporation | 5.375% | 3/15/24 | BBB– | 2,057,369 | |||||||||||||||
3,930 | Total Auto Components | 3,908,069 | ||||||||||||||||||
Automobiles – 0.7% | ||||||||||||||||||||
1,230 | BMW US Capital LLC, 144A | 3.450% | 4/12/23 | A+ | 1,220,988 | |||||||||||||||
2,065 | General Motors company | 4.000% | 4/01/25 | BBB | 1,930,313 | |||||||||||||||
920 | Jaguar Land Rover Automotive PLC, 144A, (3) | 4.500% | 10/01/27 | BB | 685,400 | |||||||||||||||
4,215 | Total Automobiles | 3,836,701 | ||||||||||||||||||
Banks – 3.5% | ||||||||||||||||||||
2,435 | Banco Santander SA | 3.800% | 2/23/28 | A– | 2,167,138 | |||||||||||||||
2,865 | Barclays PLC | 3.650% | 3/16/25 | A | 2,640,782 | |||||||||||||||
2,010 | BNP Paribas SA, 144A | 4.375% | 5/12/26 | A | 1,935,210 | |||||||||||||||
2,100 | ING Groep NV | 3.950% | 3/29/27 | A+ | 2,016,133 | |||||||||||||||
2,425 | PNC Financial Services Group Inc. | 3.150% | 5/19/27 | A+ | 2,315,365 | |||||||||||||||
3,335 | Santander UK PLC, 144A | 5.000% | 11/07/23 | A– | 3,256,594 | |||||||||||||||
3,090 | SunTrust Bank/Atlanta GA | 2.450% | 8/01/22 | A– | 2,978,795 | |||||||||||||||
2,505 | Wells Fargo & company | 4.600% | 4/01/21 | A+ | 2,565,078 | |||||||||||||||
20,765 | Total Banks | 19,875,095 |
81
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Beverages – 1.0% | ||||||||||||||||||||
$ | 1,650 | Anheuser-Busch InBev Finance Inc. | 3.650% | 2/01/26 | A– | $ | 1,558,251 | |||||||||||||
2,000 | Heineken NV, 144A | 3.500% | 1/29/28 | BBB+ | 1,929,764 | |||||||||||||||
2,340 | Keurig Dr Pepper Inc., 144A | 4.417% | 5/25/25 | BBB | 2,330,178 | |||||||||||||||
5,990 | Total Beverages | 5,818,193 | ||||||||||||||||||
Building Products – 0.6% | ||||||||||||||||||||
930 | American Woodmark Corporation, 144A | 4.875% | 3/15/26 | BB | 823,050 | |||||||||||||||
2,740 | Owens Corning | 4.200% | 12/15/22 | BBB | 2,720,342 | |||||||||||||||
3,670 | Total Building Products | 3,543,392 | ||||||||||||||||||
Capital Markets – 6.5% | ||||||||||||||||||||
1,845 | Charles Schwab Corporation | 2.650% | 1/25/23 | A | 1,800,936 | |||||||||||||||
3,630 | Deutsche Bank AG/New York NY | 4.875% | 12/01/32 | BBB | 2,822,470 | |||||||||||||||
1,125 | Donnelley Financial Solutions Inc. | 8.250% | 10/15/24 | B | 1,116,562 | |||||||||||||||
1,375 | Goldman Sachs Group Inc. | 5.250% | 7/27/21 | A | 1,427,320 | |||||||||||||||
900 | Goldman Sachs Group Inc. | 5.750% | 1/24/22 | A | 942,291 | |||||||||||||||
8,250 | Goldman Sachs Group Inc. | 4.000% | 3/03/24 | A | 8,140,317 | |||||||||||||||
2,295 | Goldman Sachs Group Inc. | 4.250% | 10/21/25 | A– | 2,198,746 | |||||||||||||||
1,955 | Jefferies Group LLC / Jefferies Group Capital Finance Inc. | 4.850% | 1/15/27 | BBB | 1,869,131 | |||||||||||||||
3,915 | Lazard Group LLC | 3.625% | 3/01/27 | A– | 3,683,984 | |||||||||||||||
3,070 | Morgan Stanley | 4.000% | 7/23/25 | A | 3,030,061 | |||||||||||||||
8,500 | Morgan Stanley | 3.950% | 4/23/27 | A– | 8,018,115 | |||||||||||||||
2,415 | Northern Trust Corporation | 3.950% | 10/30/25 | A+ | 2,461,344 | |||||||||||||||
39,275 | Total Capital Markets | 37,511,277 | ||||||||||||||||||
Chemicals – 1.3% | ||||||||||||||||||||
3,000 | Agrium Inc. | 3.375% | 3/15/25 | BBB | 2,788,259 | |||||||||||||||
995 | Chemours company | 5.375% | 5/15/27 | BB– | 895,500 | |||||||||||||||
1,000 | FXI Holdings Inc., 144A | 7.875% | 11/01/24 | B | 857,500 | |||||||||||||||
1,500 | NOVA Chemicals Corporation, 144A | 5.250% | 8/01/23 | BBB– | 1,417,500 | |||||||||||||||
1,350 | NOVA Chemicals Corporation, 144A | 5.000% | 5/01/25 | BBB– | 1,215,000 | |||||||||||||||
7,845 | Total Chemicals | 7,173,759 | ||||||||||||||||||
Commercial Services & Supplies – 1.2% | ||||||||||||||||||||
1,575 | ADT Security Corporation, 144A | 4.875% | 7/15/32 | BB– | 1,165,500 | |||||||||||||||
2,105 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust | 3.950% | 2/01/22 | BBB– | 2,067,174 | |||||||||||||||
1,529 | Brink’s company, 144A | 4.625% | 10/15/27 | BB+ | 1,395,564 | |||||||||||||||
1,500 | frontdoor Inc., 144A | 6.750% | 8/15/26 | B2 | 1,425,000 | |||||||||||||||
800 | Staples Inc., 144A | 8.500% | 9/15/25 | B– | 721,760 | |||||||||||||||
7,509 | Total Commercial Services & Supplies | 6,774,998 | ||||||||||||||||||
Construction Materials – 0.1% | ||||||||||||||||||||
675 | Gates Global LLC / Gates Global company, 144A | 6.000% | 7/15/22 | B | 661,500 |
82
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Consumer Finance – 1.5% | ||||||||||||||||||||
$ | 2,280 | Capital One Financial Corporation | 3.750% | 3/09/27 | A– | $ | 2,118,796 | |||||||||||||
1,000 | Curo Group Holdings Corporation, 144A | 8.250% | 9/01/25 | B– | 785,000 | |||||||||||||||
1,750 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 1,709,143 | |||||||||||||||
3,370 | John Deere Capital Corporation | 2.650% | 6/24/24 | A | 3,232,216 | |||||||||||||||
745 | Navient Corporation | 6.750% | 6/15/26 | BB | 618,350 | |||||||||||||||
9,145 | Total Consumer Finance | 8,463,505 | ||||||||||||||||||
Containers & Packaging – 0.1% | ||||||||||||||||||||
745 | Crown Americas LLC / Crown Americas Capital Corporation IV | 4.500% | 1/15/23 | BB– | 727,306 | |||||||||||||||
Diversified Financial Services – 5.7% | ||||||||||||||||||||
1,064 | Bank of America Corporation | 4.000% | 4/01/24 | A+ | 1,069,822 | |||||||||||||||
1,105 | Bank of America Corporation | 3.248% | 10/21/27 | A+ | 1,021,846 | |||||||||||||||
3,662 | Bank of America Corporation | 3.419% | 12/20/28 | A+ | 3,422,886 | |||||||||||||||
1,405 | Citigroup Inc. | 4.500% | 1/14/22 | A | 1,435,476 | |||||||||||||||
6,495 | Citigroup Inc. | 3.750% | 6/16/24 | A | 6,448,985 | |||||||||||||||
3,155 | Citigroup Inc. | 3.200% | 10/21/26 | A | 2,913,642 | |||||||||||||||
2,995 | Citigroup Inc. | 4.300% | 11/20/26 | A– | 2,881,540 | |||||||||||||||
3,740 | GE Capital International Funding Co Unlimited Co | 4.418% | 11/15/35 | BBB+ | 3,146,489 | |||||||||||||||
5,250 | JPMorgan Chase & company | 3.200% | 1/25/23 | AA– | 5,173,218 | |||||||||||||||
1,100 | JPMorgan Chase & company | 3.875% | 9/10/24 | A+ | 1,084,426 | |||||||||||||||
2,715 | JPMorgan Chase & company | 4.260% | 2/22/48 | AA– | 2,528,722 | |||||||||||||||
2,000 | Quicken Loans Inc., 144A | 5.250% | 1/15/28 | Ba1 | 1,770,000 | |||||||||||||||
34,686 | Total Diversified Financial Services | 32,897,052 | ||||||||||||||||||
Diversified Telecommunication Services – 2.2% | ||||||||||||||||||||
3,215 | AT&T Inc. | 3.400% | 5/15/25 | A– | 3,022,148 | |||||||||||||||
883 | Frontier Communications Corporation | 8.500% | 4/15/20 | B | 781,455 | |||||||||||||||
1,175 | GCI LLC | 6.875% | 4/15/25 | B+ | 1,139,750 | |||||||||||||||
2,360 | Qwest Corporation | 6.750% | 12/01/21 | BBB– | 2,412,885 | |||||||||||||||
500 | Sprint Capital Corporation | 6.875% | 11/15/28 | B+ | 472,500 | |||||||||||||||
2,650 | Telefonica Emisiones SA | 4.103% | 3/08/27 | BBB | 2,555,236 | |||||||||||||||
2,200 | Telenet Finance Luxembourg Notes Sarl | 5.500% | 3/01/28 | BB+ | 1,991,000 | |||||||||||||||
12,983 | Total Diversified Telecommunication Services | 12,374,974 | ||||||||||||||||||
Electric Utilities – 0.5% | ||||||||||||||||||||
1,262 | Berkshire Hathaway Energy company | 6.125% | 4/01/36 | A– | 1,506,864 | |||||||||||||||
1,000 | Calpine Corporation, 144A | 5.250% | 6/01/26 | BB+ | 912,500 | |||||||||||||||
1,000 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B+ | 710,000 | |||||||||||||||
3,262 | Total Electric Utilities | 3,129,364 |
83
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Electrical Equipment – 0.3% | ||||||||||||||||||||
$ | 1,540 | Park Aerospace Holdings Ltd, 144A | 5.250% | 8/15/22 | BB | $ | 1,489,950 | |||||||||||||
Energy Equipment & Services – 1.4% | ||||||||||||||||||||
2,435 | Baker Hughes a GE Co LLC / Baker HughesCo-Obligor Inc. | 2.773% | 12/15/22 | A– | 2,336,003 | |||||||||||||||
1,500 | Ensco PLC, (3) | 5.200% | 3/15/25 | B | 997,500 | |||||||||||||||
2,375 | HSBC Holdings PLC | 4.375% | 11/23/26 | A+ | 2,300,469 | |||||||||||||||
1,165 | Oceaneering International Inc. | 6.000% | 2/01/28 | BB+ | 939,869 | |||||||||||||||
1,000 | Precision Drilling Corporation, 144A | 7.125% | 1/15/26 | BB | 860,000 | |||||||||||||||
750 | Shelf Drilling Holdings Ltd, 144A | 8.250% | 2/15/25 | B2 | 641,250 | |||||||||||||||
9,225 | Total Energy Equipment & Services | 8,075,091 | ||||||||||||||||||
Equity Real Estate Investment Trusts – 0.7% | ||||||||||||||||||||
2,070 | American Tower Corporation | 5.000% | 2/15/24 | BBB | 2,141,141 | |||||||||||||||
2,080 | Piedmont Operating Partnership LP | 4.450% | 3/15/24 | BBB | 2,096,065 | |||||||||||||||
4,150 | Total Equity Real Estate Investment Trusts | 4,237,206 | ||||||||||||||||||
Food & Staples Retailing – 1.3% | ||||||||||||||||||||
2,990 | CVS Health Corporation | 4.300% | 3/25/28 | BBB | 2,927,771 | |||||||||||||||
1,000 | JBS USA LUX SA / JBS USA Finance Inc., 144A | 6.750% | 2/15/28 | BB– | 975,000 | |||||||||||||||
1,000 | Rite Aid Corporation, 144A | 6.125% | 4/01/23 | BB | 790,000 | |||||||||||||||
2,975 | Sysco Corporation | 3.300% | 7/15/26 | A3 | 2,832,642 | |||||||||||||||
7,965 | Total Food & Staples Retailing | 7,525,413 | ||||||||||||||||||
Food Products – 0.8% | ||||||||||||||||||||
2,460 | Bunge Ltd Finance Corporation | 3.250% | 8/15/26 | BBB | 2,156,489 | |||||||||||||||
2,235 | Kraft Heinz Foods company | 4.375% | 6/01/46 | BBB | 1,843,637 | |||||||||||||||
800 | Post Holdings Inc., 144A | 5.625% | 1/15/28 | B+ | 736,000 | |||||||||||||||
5,495 | Total Food Products | 4,736,126 | ||||||||||||||||||
Gas Utilities – 0.2% | ||||||||||||||||||||
1,250 | Suburban Propane Partners LP/Suburban Energy Finance Corporation | 5.500% | 6/01/24 | BB– | 1,162,500 | |||||||||||||||
Health Care Providers & Services – 0.5% | ||||||||||||||||||||
1,515 | Centene Corporation, 144A | 5.375% | 6/01/26 | BB+ | 1,473,337 | |||||||||||||||
715 | CHS/Community Health Systems Inc. | 6.250% | 3/31/23 | B | 649,792 | |||||||||||||||
835 | HCA Inc. | 5.500% | 6/15/47 | BBB– | 791,162 | |||||||||||||||
3,065 | Total Health Care Providers & Services | 2,914,291 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||||||||||||||
720 | 1011778 BC ULC / New Red Finance Inc., 144A | 5.000% | 10/15/25 | B– | 662,400 | |||||||||||||||
1,230 | Hilton Domestic Operating company Inc., 144A | 5.125% | 5/01/26 | BB+ | 1,180,800 | |||||||||||||||
1,550 | VOC Escrow Ltd, 144A | 5.000% | 2/15/28 | Ba2 | 1,429,875 | |||||||||||||||
3,500 | Total Hotels, Restaurants & Leisure | 3,273,075 |
84
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Household Durables – 0.9% | ||||||||||||||||||||
$ | 1,940 | Harman International Industries Inc. | 4.150% | 5/15/25 | BBB+ | $ | 1,944,746 | |||||||||||||
2,505 | Newell Brands Inc. | 4.200% | 4/01/26 | BBB– | 2,449,367 | |||||||||||||||
1,000 | TRI Pointe Group Inc. | 5.250% | 6/01/27 | BB– | 790,000 | |||||||||||||||
5,445 | Total Household Durables | 5,184,113 | ||||||||||||||||||
Household Products – 0.2% | ||||||||||||||||||||
1,300 | Kimberly-Clark de Mexico SAB de CV, 144A | 3.250% | 3/12/25 | A | 1,218,045 | |||||||||||||||
Industrial Conglomerates – 0.7% | ||||||||||||||||||||
1,000 | Alfa SAB de CV, 144A | 5.250% | 3/25/24 | BBB– | 993,750 | |||||||||||||||
3,200 | Siemens Financieringsmaatschappij NV, 144A, (3) | 3.400% | 3/16/27 | A+ | 3,114,349 | |||||||||||||||
4,200 | Total Industrial Conglomerates | 4,108,099 | ||||||||||||||||||
Insurance – 3.6% | ||||||||||||||||||||
646 | Aflac Inc. | 6.450% | 8/15/40 | A– | 779,666 | |||||||||||||||
3,000 | Fairfax US Inc., 144A | 4.875% | 8/13/24 | BBB– | 3,066,181 | |||||||||||||||
1,230 | Genworth Holdings Inc. | 4.800% | 2/15/24 | B | 1,014,750 | |||||||||||||||
3,370 | Liberty Mutual Group Inc., 144A | 4.950% | 5/01/22 | BBB | 3,474,393 | |||||||||||||||
2,535 | Lincoln National Corporation | 4.000% | 9/01/23 | A– | 2,584,073 | |||||||||||||||
750 | Nationstar Mortgage Holdings Inc., 144A | 8.125% | 7/15/23 | B+ | 731,250 | |||||||||||||||
3,015 | Symetra Financial Corporation | 4.250% | 7/15/24 | Baa1 | 2,957,410 | |||||||||||||||
2,075 | Unum Group | 4.000% | 3/15/24 | BBB | 2,059,425 | |||||||||||||||
1,805 | Willis North America Inc. | 3.600% | 5/15/24 | BBB | 1,762,202 | |||||||||||||||
2,225 | XLIT Ltd | 4.450% | 3/31/25 | BBB+ | 2,212,076 | |||||||||||||||
20,651 | Total Insurance | 20,641,426 | ||||||||||||||||||
Internet Software & Services – 0.3% | ||||||||||||||||||||
1,865 | eBay Inc. | 3.800% | 3/09/22 | BBB+ | 1,872,691 | |||||||||||||||
Leisure Products – 0.1% | ||||||||||||||||||||
750 | Mattel Inc., 144A | 6.750% | 12/31/25 | BB– | 669,142 | |||||||||||||||
Machinery – 0.5% | ||||||||||||||||||||
750 | Apex Tool Group LLC / BC Mountain Finance Inc., 144A, (3) | 9.000% | 2/15/23 | B– | 633,750 | |||||||||||||||
1,000 | Cleaver-Brooks Inc., 144A | 7.875% | 3/01/23 | B | 965,000 | |||||||||||||||
1,000 | Navistar International Corporation, 144A | 6.625% | 11/01/25 | B– | 965,000 | |||||||||||||||
2,750 | Total Machinery | 2,563,750 | ||||||||||||||||||
Marine – 0.2% | ||||||||||||||||||||
1,000 | Stena International SA, 144A | 5.750% | 3/01/24 | BB– | 902,500 | |||||||||||||||
Media – 1.6% | ||||||||||||||||||||
1,975 | AMC Networks Inc. | 4.750% | 8/01/25 | BB | 1,792,312 | |||||||||||||||
1,790 | Comcast Corporation | 6.400% | 5/15/38 | A– | 2,102,081 | |||||||||||||||
1,500 | Intelsat Luxembourg SA, (3) | 8.125% | 6/01/23 | CCC– | 1,162,500 | |||||||||||||||
1,000 | Meredith Corporation, 144A | 6.875% | 2/01/26 | B | 977,500 |
85
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Media(continued) | ||||||||||||||||||||
$ | 1,450 | VTR Finance BV, 144A | 6.875% | 1/15/24 | BB– | $ | 1,450,000 | |||||||||||||
1,805 | Warner Media LLC | 3.875% | 1/15/26 | A– | 1,724,767 | |||||||||||||||
9,520 | Total Media | 9,209,160 | ||||||||||||||||||
Metals & Mining – 1.1% | ||||||||||||||||||||
1,205 | Glencore Funding LLC, 144A | 4.000% | 3/27/27 | BBB+ | 1,098,317 | |||||||||||||||
615 | Hudbay Minerals Inc., 144A | 7.250% | 1/15/23 | B+ | 607,312 | |||||||||||||||
1,000 | Northwest Acquisitions ULC / Dominion Finco., Inc., 144A | 7.125% | 11/01/22 | BB | 988,530 | |||||||||||||||
1,000 | Novelis Corporation, 144A | 6.250% | 8/15/24 | B+ | 940,000 | |||||||||||||||
1,000 | SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corporation, 144A | 7.500% | 6/15/25 | BB– | 947,500 | |||||||||||||||
750 | Tronox Inc., 144A, (3) | 6.500% | 4/15/26 | B– | 622,500 | |||||||||||||||
1,045 | United States Steel Corporation | 6.250% | 3/15/26 | BB– | 914,375 | |||||||||||||||
6,615 | Total Metals & Mining | 6,118,534 | ||||||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||||||
2,170 | Sempra Energy | 3.400% | 2/01/28 | BBB+ | 1,983,913 | |||||||||||||||
Oil, Gas & Consumable Fuels – 3.8% | ||||||||||||||||||||
2,405 | Enterprise Products Operating LLC | 2.800% | 2/15/21 | BBB+ | 2,378,529 | |||||||||||||||
2,700 | MPLX LP | 4.875% | 6/01/25 | BBB | 2,722,405 | |||||||||||||||
1,000 | PBF Holding Co LLC / PBF Finance Corporation | 7.250% | 6/15/25 | BB | 940,000 | |||||||||||||||
1,000 | Peabody Energy Corporation, 144A | 6.375% | 3/31/25 | BB | 930,000 | |||||||||||||||
1,000 | Petrobras Global Finance BV | 7.375% | 1/17/27 | Ba2 | 1,027,500 | |||||||||||||||
1,275 | Petro-Canada | 6.800% | 5/15/38 | A– | 1,484,734 | |||||||||||||||
1,575 | Petroleos del Peru SA, 144A | 4.750% | 6/19/32 | BBB+ | 1,512,000 | |||||||||||||||
2,200 | Petroleos Mexicanos | 6.500% | 3/13/27 | BBB+ | 2,068,000 | |||||||||||||||
1,345 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 1,424,731 | |||||||||||||||
1,000 | Sunoco LP / Sunoco Finance Corporation | 4.875% | 1/15/23 | BB | 975,000 | |||||||||||||||
670 | Targa Resources Partners LP / Targa Resources Partners Finance Corporation | 4.250% | 11/15/23 | BB | 620,588 | |||||||||||||||
1,915 | Western Gas Partners LP | 4.500% | 3/01/28 | BBB– | 1,791,027 | |||||||||||||||
2,875 | Woodside Finance Ltd, 144A | 3.650% | 3/05/25 | BBB+ | 2,731,926 | |||||||||||||||
1,515 | WPX Energy Inc. | 5.750% | 6/01/26 | BB– | 1,371,075 | |||||||||||||||
22,475 | Total Oil, Gas & Consumable Fuels | 21,977,515 | ||||||||||||||||||
Paper & Forest Products – 0.8% | ||||||||||||||||||||
2,100 | Domtar Corporation | 6.750% | 2/15/44 | BBB– | 2,131,371 | |||||||||||||||
1,740 | International Paper company | 8.700% | 6/15/38 | BBB | 2,316,956 | |||||||||||||||
3,840 | Total Paper & Forest Products | 4,448,327 | ||||||||||||||||||
Personal Products – 0.1% | ||||||||||||||||||||
825 | First Quality Finance company Inc., 144A | 5.000% | 7/01/25 | BB– | 738,375 |
86
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Pharmaceuticals – 0.5% | ||||||||||||||||||||
$ | 1,995 | Endo Finance LLC / Endo Finco., Inc., 144A | 5.375% | 1/31/23 | B3 | $ | 1,516,200 | |||||||||||||
1,515 | Teva Pharmaceutical Finance Netherlands III BV | 6.750% | 3/01/28 | BB | 1,468,716 | |||||||||||||||
3,510 | Total Pharmaceuticals | 2,984,916 | ||||||||||||||||||
Real Estate Management & Development – 0.2% | ||||||||||||||||||||
1,500 | Hunt Companies Inc., 144A | 6.250% | 2/15/26 | BB– | 1,281,600 | |||||||||||||||
Road & Rail – 0.7% | ||||||||||||||||||||
750 | Hertz Corporation, 144A | 7.625% | 6/01/22 | B+ | 706,875 | |||||||||||||||
1,500 | Union Pacific Corporation | 4.500% | 9/10/48 | A– | 1,481,192 | |||||||||||||||
750 | United Rentals North America Inc. | 6.500% | 12/15/26 | BB | 738,750 | |||||||||||||||
1,000 | United Rentals North America Inc. | 4.875% | 1/15/28 | BB | 877,500 | |||||||||||||||
4,000 | Total Road & Rail | 3,804,317 | ||||||||||||||||||
Semiconductors & Semiconductor Equipment – 0.9% | ||||||||||||||||||||
2,655 | Intel Corporation | 3.150% | 5/11/27 | A+ | 2,579,921 | |||||||||||||||
2,425 | Texas Instruments Inc. | 2.900% | 11/03/27 | A+ | 2,300,221 | |||||||||||||||
5,080 | Total Semiconductors & Semiconductor Equipment | 4,880,142 | ||||||||||||||||||
Software – 0.7% | ||||||||||||||||||||
875 | CDK Global Inc. | 5.875% | 6/15/26 | BB+ | 878,544 | |||||||||||||||
2,450 | Microsoft Corporation | 3.300% | 2/06/27 | AAA | 2,428,068 | |||||||||||||||
1,250 | West Corporation, 144A | 8.500% | 10/15/25 | B3 | 981,250 | |||||||||||||||
4,575 | Total Software | 4,287,862 | ||||||||||||||||||
Specialty Retail – 1.0% | ||||||||||||||||||||
2,000 | AutoNation Inc. | 4.500% | 10/01/25 | BBB– | 1,933,829 | |||||||||||||||
1,500 | L Brands Inc. | 6.875% | 11/01/35 | Ba1 | 1,252,800 | |||||||||||||||
1,290 | Lowe’s Companies Inc. | 3.100% | 5/03/27 | BBB+ | 1,179,391 | |||||||||||||||
1,250 | PGT Escrow Issuer Inc., 144A | 6.750% | 8/01/26 | B | 1,231,250 | |||||||||||||||
6,040 | Total Specialty Retail | 5,597,270 | ||||||||||||||||||
Tobacco – 0.1% | ||||||||||||||||||||
750 | Pyxus International Inc. | 9.875% | 7/15/21 | CCC | 568,125 | |||||||||||||||
Trading Companies & Distributors – 0.3% | ||||||||||||||||||||
515 | Ashtead Capital Inc., 144A | 4.125% | 8/15/25 | BBB– | 471,225 | |||||||||||||||
600 | Ashtead Capital Inc., 144A | 5.250% | 8/01/26 | BBB– | 579,000 | |||||||||||||||
1,000 | H&E Equipment Services Inc. | 5.625% | 9/01/25 | BB– | 917,500 | |||||||||||||||
2,115 | Total Trading Companies & Distributors | 1,967,725 | ||||||||||||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||||||||||||
1,000 | Hughes Satellite Systems Corporation | 6.625% | 8/01/26 | BB– | 916,250 | |||||||||||||||
1,040 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 925,600 | |||||||||||||||
1,564 | Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC, 144A | 3.360% | 9/20/21 | Baa2 | 1,544,512 | |||||||||||||||
1,350 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BBB– | 1,282,500 | |||||||||||||||
4,954 | Total Wireless Telecommunication Services | 4,668,862 | ||||||||||||||||||
$ | 325,705 | Total Corporate Bonds (cost $324,286,336) | 310,201,869 |
87
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 20.9% | ||||||||||||||||||||
$ | 3,075 | Ally Auto Receivables Trust2017-3, Series ALLYA2017-3 A4 | 2.010% | 3/15/22 | AAA | $ | 3,028,742 | |||||||||||||
33 | Alternative Loan Trust 2004-24CB, Series CWALT 2004-24CB 2A1 | 5.000% | 11/25/19 | BB+ | 32,360 | |||||||||||||||
2,240 | American Homes 4 Rent 2014-SFR2 Trust, Series AH4R 2014-SFR2 A, 144A | 3.786% | 10/17/36 | Aaa | 2,260,553 | |||||||||||||||
2,270 | Americold 2010 LLC, Series ACRE 2010-ARTA C, 144A | 6.811% | 1/14/29 | AA+ | 2,406,855 | |||||||||||||||
19 | Banc of America Alternative Loan Trust2005-5, Series BOAA2005-5 2CB1 | 6.000% | 6/25/35 | D | 17,955 | |||||||||||||||
1,200 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM 2015-UBS7 C | 4.362% | 9/17/48 | A– | 1,174,360 | |||||||||||||||
770 | Banc of America Commercial Mortgage Trust 2015-UBS7, Series BACM 2015-UBS7 D | 3.167% | 9/17/48 | BBB– | 637,002 | |||||||||||||||
2,400 | BBCMS Trust2015-STP, Series BBCMS2015-STP D, 144A | 4.284% | 9/10/28 | BBB– | 2,383,139 | |||||||||||||||
590 | CHL Mortgage Pass-Through Trust2005-27, Series CWHL2005-27 1A7 | 5.500% | 1/25/23 | Caa1 | 568,473 | |||||||||||||||
3,000 | Cold Storage Trust 2017-ICE3, Series COLD 2017-ICE3 A, 144A,(1-Month LIBOR reference rate + 1.000% spread), (4) | 3.455% | 4/15/36 | AAA | 2,946,362 | |||||||||||||||
3,940 | COMM 2015-CCRE22 Mortgage Trust, Series COMM 2015-CR22 C | 4.121% | 3/12/48 | A– | 3,829,100 | |||||||||||||||
3,260 | COMM 2015-CCRE26 Mortgage Trust, Series COMM 2015-CR26 C | 4.483% | 10/10/48 | A– | 3,222,127 | |||||||||||||||
102 | Credit Suisse First Boston Mortgage Securities Corp, Series CSFB2003-23 3A4 | 5.750% | 9/25/33 | AA+ | 106,289 | |||||||||||||||
3,486 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2I, 144A,(3-Month LIBOR reference rate + 1.250% spread), (4) | 3.740% | 7/25/47 | BBB+ | 3,482,598 | |||||||||||||||
3,634 | Domino’s Pizza Master Issuer LLC, Series DPABS2017-1A A2II, 144A | 3.082% | 7/25/47 | BBB+ | 3,540,606 | |||||||||||||||
46 | Fannie Mae Interest Strip, Series FNS 366 25 | 5.000% | 9/01/24 | Aaa | 1,457 | |||||||||||||||
520 | Fannie Mae Mortgage Pool FN 255956 | 5.500% | 10/01/25 | N/R | 550,460 | |||||||||||||||
36 | Fannie Mae Mortgage Pool FN 256890 | 6.000% | 9/01/37 | N/R | 39,489 | |||||||||||||||
70 | Fannie Mae Mortgage Pool FN 725205 | 5.000% | 3/01/34 | N/R | 74,932 | |||||||||||||||
98 | Fannie Mae Mortgage Pool FN 725773 | 5.500% | 9/01/34 | N/R | 104,933 | |||||||||||||||
39 | Fannie Mae Mortgage Pool FN 735060 | 6.000% | 11/01/34 | N/R | 42,250 | |||||||||||||||
38 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | N/R | 40,327 | |||||||||||||||
175 | Fannie Mae Mortgage Pool FN 745324 | 6.000% | 3/01/34 | N/R | 187,593 | |||||||||||||||
27 | Fannie Mae Mortgage Pool FN 824163 | 5.500% | 4/01/35 | N/R | 29,500 | |||||||||||||||
34 | Fannie Mae Mortgage Pool FN 831377 | 6.500% | 4/01/36 | N/R | 37,753 | |||||||||||||||
17 | Fannie Mae Mortgage Pool FN 852909 | 6.500% | 4/01/36 | N/R | 18,850 | |||||||||||||||
— (5) | Fannie Mae Mortgage Pool FN 889618 | 5.500% | 5/01/38 | N/R | 91 | |||||||||||||||
30 | Fannie Mae Mortgage Pool FN 893318 | 6.500% | 8/01/36 | N/R | 32,543 | |||||||||||||||
3 | Fannie Mae Mortgage Pool FN 905597,(12-Month LIBOR reference rate + 1.890% spread), (4) | 4.798% | 12/01/36 | N/R | 3,441 | |||||||||||||||
38 | Fannie Mae Mortgage Pool FN 944340 | 6.000% | 6/01/37 | N/R | 41,773 | |||||||||||||||
24 | Fannie Mae Mortgage Pool FN 946228,(12-Month LIBOR reference rate + 1.546% spread), (4) | 4.296% | 9/01/37 | N/R | 24,043 | |||||||||||||||
— (5) | Fannie Mae Mortgage Pool FN 985344 | 5.500% | 7/01/38 | N/R | 60 | |||||||||||||||
159 | Fannie Mae Mortgage Pool FN AA0005 | 5.500% | 11/01/38 | N/R | 170,666 | |||||||||||||||
102 | Fannie Mae Mortgage Pool FN AA0889 | 5.500% | 12/01/38 | N/R | 109,167 | |||||||||||||||
2 | Fannie Mae Mortgage Pool FN AL1187 | 5.500% | 7/01/24 | N/R | 2,111 | |||||||||||||||
1,430 | Fannie Mae TBA, (WI/DD) | 4.500% | TBA | N/R | 1,481,467 |
88
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 755 | Fannie Mae TBA, (WI/DD) | 4.000% | TBA | N/R | $ | 769,880 | |||||||||||||
13,150 | Fannie Mae TBA, (WI/DD) | 3.500% | TBA | N/R | 13,151,827 | |||||||||||||||
2,000 | Fifth Third Auto Trust2017-1, Series FITAT2017-1 A3 | 1.800% | 2/15/22 | AAA | 1,978,244 | |||||||||||||||
2,050 | Finance of America Structured Securities Trust2017-HB1, | 3.624% | 11/25/27 | Baa2 | 2,041,780 | |||||||||||||||
3,140 | Flagstar Mortgage Trust2017-2, Series FSMT2017-2 A5, 144A | 3.500% | 10/25/47 | Aaa | 3,122,264 | |||||||||||||||
3,057 | Flagstar Mortgage Trust2018-4, Series FSMT2018-4 A4, 144A | 4.000% | 7/25/48 | Aaa | 3,074,234 | |||||||||||||||
2,965 | FOCUS Brands Funding LLC, Series FOCUS2017-1A A2II, 144A | 5.093% | 4/30/47 | BBB | 3,004,638 | |||||||||||||||
195 | Freddie Mac Gold Pool A17212 | 6.500% | 7/01/31 | Aaa | 211,118 | |||||||||||||||
45 | Freddie Mac Gold Pool H09059 | 7.000% | 8/01/37 | Aaa | 48,108 | |||||||||||||||
2,465 | GS Mortgage Securities Trust 2015-GC32, Series GSMS 2015-GC32 D | 3.345% | 7/10/48 | BBB– | 2,100,364 | |||||||||||||||
3,000 | Honda Auto Receivables2017-2 Owner Trust, Series HAROT2017-2 A4 | 1.870% | 9/15/23 | AAA | 2,947,730 | |||||||||||||||
1,069 | Impac Secured Assets CMN Owner Trust, Series IMSA2000-3 M1 | 8.000% | 10/25/30 | CCC | 1,047,576 | |||||||||||||||
3,246 | Invitation Homes 2018-SFR2 Trust, Series IHSFR 2018-SFR2 A, 144A,(1-Month LIBOR reference rate + 0.900% spread), (4) | 3.355% | 6/18/37 | Aaa | 3,208,108 | |||||||||||||||
3,537 | Invitation Homes 2018-SFR3 Trust, Series IHSFR 2018-SFR3 A, 144A,(1-Month LIBOR reference rate + 1.000% spread), (4) | 3.455% | 7/17/37 | Aaa | 3,516,129 | |||||||||||||||
5,000 | J.P. Morgan Chase Commercial Mortgage Securities Trust 2017-MAUI, Series JPMCC 2017-MAUI A, 144A,(1-Month LIBOR reference rate + 0.830% spread), (4) | 3.217% | 7/17/34 | AAA | 4,945,358 | |||||||||||||||
528 | JP Morgan Alternative Loan Trust2007-S1, Series JPALT2007-S1 A1,(1-Month LIBOR reference rate + 0.280% spread), (4) | 2.786% | 6/25/37 | BBB+ | 513,529 | |||||||||||||||
1,500 | JPMCC Commercial Mortgage Securities Trust2017-JP5, Series JPMCC2017-JP5 A5 | 3.723% | 3/17/50 | Aaa | 1,510,271 | |||||||||||||||
1,952 | MASTR Reperforming Loan Trust2005-1, Series MARP2005-1 1A4, 144A | 7.500% | 8/25/34 | C | 1,931,371 | |||||||||||||||
2,750 | Morgan Stanley Bank of America Merrill Lynch Trust2014-C16, | 4.754% | 6/17/47 | BBB– | 2,455,247 | |||||||||||||||
1,955 | Morgan Stanley Bank of America Merrill Lynch Trust2015-C22, | 4.237% | 4/15/48 | BBB– | 1,687,312 | |||||||||||||||
3,100 | New Residential Advance Receivables Trust Advance Receivables Backed Notes, Series NRART2017-T1 DT1, 144A | 4.002% | 2/15/51 | BBB | 3,059,376 | |||||||||||||||
2,668 | New Residential Mortgage Loan Trust2017-6, Series NRZT2017-6A A1, 144A | 4.000% | 8/25/57 | Aaa | 2,681,051 | |||||||||||||||
3,900 | Ocwen Master Advance Receivables Trust, Series OMART2016-T2 DT2, 144A | 4.446% | 8/16/49 | BBB | 3,900,090 | |||||||||||||||
2,115 | Ocwen Master Advance Receivables Trust, Series OMART2018-T2 DT2, 144A | 4.532% | 8/15/50 | BBB | 2,119,928 | |||||||||||||||
2,095 | Planet Fitness Master Issuer LLC, Series PLNT2018-1A A2I, 144A | 4.262% | 9/05/48 | BBB– | 2,103,464 | |||||||||||||||
72 | RALI Series 2005-QS12 Trust, Series RALI 2005-QS12 A7 | 5.500% | 8/25/35 | Caa2 | 68,153 | |||||||||||||||
1,154 | Sequoia Mortgage Trust2017-CH2, Series SEMT2017-CH2 A10, 144A | 4.000% | 12/25/47 | Aaa | 1,158,227 | |||||||||||||||
2,614 | Sequoia Mortgage Trust2018-CH4, Series SEMT2018-CH4 A10, 144A | 4.500% | 10/25/48 | Aaa | 2,665,215 | |||||||||||||||
4,037 | ShellpointCo-Originator Trust2017-2, Series SCOT2017-2 A4, 144A | 3.500% | 10/25/47 | Aaa | 3,986,283 | |||||||||||||||
3,109 | Starwood Waypoint Homes2017-1 Trust, Series SWH2017-1 A, 144A,(1-Month LIBOR reference rate + 0.950% spread), (4) | 3.257% | 1/22/35 | Aaa | 3,092,850 | |||||||||||||||
1,822 | Taco Bell Funding LLC, Series BELL2016-1A A2II, 144A | 4.377% | 5/25/46 | BBB | 1,837,448 | |||||||||||||||
3,000 | Volkswagen Auto Loan Enhanced, Series VALET2018-1 A2A | 2.810% | 7/20/21 | AAA | 2,995,998 |
89
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES(continued) | ||||||||||||||||||||
$ | 137 | Wachovia Mortgage Loan Trust LLC Series2005-B Trust, Series WMLT2005-B 1A1 | 4.533% | 10/20/35 | D | $ | 133,880 | |||||||||||||
133 | Washington Mutual MSC Mortgage Pass-Through Certificates Series2004-RA3 Trust, Series WAMMS2004-RA3 2A | 6.162% | 8/25/38 | AA | 136,784 | |||||||||||||||
1,635 | Wells Fargo Commercial Mortgage Trust2015-C30, Series WFCM2015-C30 D, 144A | 4.497% | 9/17/58 | BBB– | 1,513,177 | |||||||||||||||
8 | Wells Fargo Mortgage Backed Securities 2005-AR16 Trust, | 4.422% | 3/25/35 | AA+ | 8,153 | |||||||||||||||
2,630 | WFRBS Commercial Mortgage Trust2011-C3, Series WFRBS2011-C3 C, 144A | 5.335% | 3/17/44 | A1 | 2,679,810 | |||||||||||||||
$ | 121,495 | Total Asset-Backed and Mortgage-Backed Securities (cost $119,916,866) | 120,034,402 | |||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 9.6% | ||||||||||||||||||||
Automobiles – 0.3% | ||||||||||||||||||||
$ | 2,470 | General Motors Financial company Inc., (3) | 5.750% | N/A (6) | BB+ | $ | 1,958,710 | |||||||||||||
Banks – 1.8% | ||||||||||||||||||||
2,000 | CoBank ACB | 6.250% | N/A (6) | BBB+ | 2,000,000 | |||||||||||||||
2,797 | KeyCorp Convertible Preferred Stock | 5.000% | N/A (6) | Baa3 | 2,555,759 | |||||||||||||||
1,000 | M&T Bank Corporation | 5.125% | N/A (6) | Baa2 | 947,500 | |||||||||||||||
4,570 | SunTrust Banks Inc. | 5.050% | N/A (6) | Baa3 | 4,010,175 | |||||||||||||||
1,000 | Wachovia Capital Trust III | 5.570% | N/A (6) | Baa2 | 904,500 | |||||||||||||||
11,367 | Total Banks | 10,417,934 | ||||||||||||||||||
Capital Markets – 1.3% | ||||||||||||||||||||
2,325 | Bank of New York Mellon Corporation | 4.950% | N/A (6) | Baa1 | 2,266,875 | |||||||||||||||
3,005 | Goldman Sachs Group Inc. | 5.300% | N/A (6) | Ba1 | 2,689,475 | |||||||||||||||
1,000 | Morgan Stanley | 5.550% | N/A (6) | BB+ | 970,500 | |||||||||||||||
1,605 | State Street Corporation | 5.250% | N/A (6) | Baa1 | 1,574,906 | |||||||||||||||
7,935 | Total Capital Markets | 7,501,756 | ||||||||||||||||||
Commercial Services & Supplies – 0.3% | ||||||||||||||||||||
1,550 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | Ba1 | 1,503,500 | |||||||||||||||
Consumer Finance – 1.0% | ||||||||||||||||||||
2,020 | American Express company | 5.200% | N/A (6) | Baa2 | 1,989,700 | |||||||||||||||
3,920 | Capital One Financial Corporation | 5.550% | N/A (6) | Baa3 | 3,775,391 | |||||||||||||||
5,940 | Total Consumer Finance | 5,765,091 | ||||||||||||||||||
Diversified Financial Services – 1.7% | ||||||||||||||||||||
1,195 | Bank of America Corporation, (3) | 6.300% | N/A (6) | BBB– | 1,213,702 | |||||||||||||||
2,830 | Bank of America Corporation | 6.100% | N/A (6) | BBB– | 2,787,550 | |||||||||||||||
4,000 | JP Morgan Chase & company | 6.750% | N/A (6) | Baa2 | 4,133,000 | |||||||||||||||
1,710 | Voya Financial Inc. | 6.125% | N/A (6) | BB+ | 1,622,362 | |||||||||||||||
9,735 | Total Diversified Financial Services | 9,756,614 |
90
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Food Products – 0.5% | ||||||||||||||||||||||||||||
$ | 2,780 | Land O’ Lakes Inc., 144A | 8.000% | N/A (6) | BB | $ | 2,939,850 | |||||||||||||||||||||
Industrial Conglomerates – 0.6% | ||||||||||||||||||||||||||||
4,086 | General Electric company | 5.000% | N/A (6) | BBB– | 3,125,790 | |||||||||||||||||||||||
Insurance – 2.1% | ||||||||||||||||||||||||||||
3,770 | Aegon NV | 5.500% | 4/11/48 | Baa1 | 3,430,700 | |||||||||||||||||||||||
2,000 | Allstate Corporation | 5.750% | 8/15/53 | Baa1 | 1,950,000 | |||||||||||||||||||||||
3,870 | American International Group Inc. | 5.750% | 4/01/48 | Baa2 | 3,366,900 | |||||||||||||||||||||||
3,730 | MetLife Inc. | 5.250% | N/A (6) | BBB | 3,580,800 | |||||||||||||||||||||||
13,370 | Total Insurance | 12,328,400 | ||||||||||||||||||||||||||
$ | 59,233 | Total $1,000 Par (or similar) Institutional Preferred (cost $59,616,438) |
| 55,297,645 | ||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 7.0% (7) | ||||||||||||||||||||||||||||
Banks – 5.3% | ||||||||||||||||||||||||||||
$ | 1,590 | Australia & New Zealand Banking Group Ltd/United Kingdom, 144A |
| 6.750% | N/A (6) | Baa2 | $ | 1,560,187 | ||||||||||||||||||||
1,400 | Banco Bilbao Vizcaya Argentaria SA, (3) | 6.125% | N/A (6) | Ba2 | 1,172,500 | |||||||||||||||||||||||
1,300 | Banco Mercantil del Norte SA/Grand Cayman, 144A | 7.625% | N/A (6) | BB | 1,257,763 | |||||||||||||||||||||||
2,000 | Barclays PLC | 7.750% | N/A (6) | BB+ | 1,923,840 | |||||||||||||||||||||||
2,330 | BNP Paribas SA, 144A | 7.375% | N/A (6) | BBB– | 2,324,175 | |||||||||||||||||||||||
2,000 | Credit Agricole SA, 144A | 8.125% | N/A (6) | BBB– | 2,055,000 | |||||||||||||||||||||||
2,905 | Credit Agricole SA, 144A | 7.875% | N/A (6) | BBB– | 2,901,206 | |||||||||||||||||||||||
2,500 | HSBC Holdings PLC | 6.375% | N/A (6) | BBB | 2,400,000 | |||||||||||||||||||||||
2,000 | ING Groep NV | 6.500% | N/A (6) | BBB– | 1,848,000 | |||||||||||||||||||||||
2,300 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A (6) | BB– | 2,058,500 | |||||||||||||||||||||||
1,500 | Lloyds Banking Group PLC | 7.500% | N/A (6) | Baa3 | 1,447,200 | |||||||||||||||||||||||
1,600 | Nordea Bank Abp, 144A | 6.125% | N/A (6) | BBB | 1,500,000 | |||||||||||||||||||||||
1,999 | Royal Bank of Scotland Group PLC | 7.500% | N/A (6) | BB+ | 1,979,010 | |||||||||||||||||||||||
3,020 | Societe Generale SA, 144A | 6.750% | N/A (6) | BB+ | 2,567,755 | |||||||||||||||||||||||
1,880 | Standard Chartered PLC, 144A | 7.500% | N/A (6) | Ba1 | 1,884,700 | |||||||||||||||||||||||
1,815 | UniCredit SpA, Reg S | 8.000% | 4/03/49 | B+ | 1611720 | |||||||||||||||||||||||
32,139 | Total Banks | 30,491,556 | ||||||||||||||||||||||||||
Capital Markets – 1.7% | ||||||||||||||||||||||||||||
2,860 | Credit Suisse Group AG, 144A | 7.500% | N/A (6) | Ba2 | 2,788,500 | |||||||||||||||||||||||
2,000 | Credit Suisse Group AG, 144A, (3) | 7.500% | N/A (6) | BB | 2,033,000 | |||||||||||||||||||||||
2,000 | Macquarie Bank Ltd/London, 144A | 6.125% | N/A (6) | Ba1 | 1,707,500 | |||||||||||||||||||||||
3,005 | UBS Group AG, Reg S | 7.000% | 12/29/49 | BBB– | 3057588 | |||||||||||||||||||||||
9,865 | Total Capital Markets | 9,586,588 | ||||||||||||||||||||||||||
$ | 42,004 | Total Contingent Capital Securities (cost $43,556,626) | 40,078,144 |
91
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
Principal Amount (000) (8) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
SOVEREIGN DEBT – 5.2% | ||||||||||||||||||||||||||||
Argentina – 0.3% | ||||||||||||||||||||||||||||
$ | 2,785 | Republic of Argentina | 6.875% | 1/11/48 | B | $ | 1,939,056 | |||||||||||||||||||||
Dominican Republic – 0.2% | ||||||||||||||||||||||||||||
1,000 | Dominican Republic International Bond, 144A | 6.875% | 1/29/26 | BB– | 1,048,750 | |||||||||||||||||||||||
Egypt – 0.7% | ||||||||||||||||||||||||||||
4,400 | Egypt Government International Bond, 144A | 5.577% | 2/21/23 | B | 4,169,704 | |||||||||||||||||||||||
Germany – 3.3% | ||||||||||||||||||||||||||||
10,300 | EUR | Bundesrepublik Deutschland Bundesanleihe, Reg S |
| 0.250% | 2/15/27 | Aaa | 11,990,126 | |||||||||||||||||||||
6,000 | EUR | Bundesrepublik Deutschland Bundesanleihe, Reg S |
| 0.500% | 2/15/28 | Aaa | 7,079,043 | |||||||||||||||||||||
Total Germany | 19,069,169 | |||||||||||||||||||||||||||
Oman – 0.3% | ||||||||||||||||||||||||||||
2,000 | Oman Government International Bond, 144A | 6.750% | 1/17/48 | Baa3 | 1,650,000 | |||||||||||||||||||||||
Saudi Arabia – 0.4% | ||||||||||||||||||||||||||||
2,290 | Saudi Government International Bond, 144A | 4.000% | 4/17/25 | A1 | 2,269,788 | |||||||||||||||||||||||
Total Sovereign Debt (cost $30,870,379) | 30,146,467 | |||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon (9) | Reference Rate (9) | Spread (9) | Maturity (10) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 0.8% (9) |
| |||||||||||||||||||||||||||
Containers & Packaging – 0.3% | ||||||||||||||||||||||||||||
$ | 977 | Packaging Coordinators Midco Inc., First Lien Term Loan | 6.340% | 3-Month LIBOR | 4.000% | 6/29/23 | B | $ | 965,287 | |||||||||||||||||||
1,000 | Packaging Coordinators Midco Inc., Second Lien Term Loan | 11.140% | 3-Month LIBOR | 8.750% | 6/30/24 | CCC+ | 1,000,000 | |||||||||||||||||||||
1,977 | Total Containers & Packaging | 1,965,287 | ||||||||||||||||||||||||||
Diversified Financial Services – 0.2% | ||||||||||||||||||||||||||||
865 | Jill Acquisition LLC, First Lien Term Loan B | 7.530% | 3-Month LIBOR | 5.000% | 5/08/22 | B1 | 857,123 | |||||||||||||||||||||
Professional Services – 0.3% | ||||||||||||||||||||||||||||
2,000 | Sedgwick Claims Management Service Inc. Second Lien Term Loan | 8.052% | 3-Month LIBOR | 5.750% | 2/28/22 | CCC+ | 1,988,330 | |||||||||||||||||||||
$ | 4,842 | Total Variable Rate Senior Loan Interests (cost $4,796,804) |
| 4,810,740 | ||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 0.8% |
| |||||||||||||||||||||||||||
$ | 2,015 | U.S. Treasury Bonds | 2.750% | 11/15/47 | Aaa | $ | 1,910,026 | |||||||||||||||||||||
2,876 | U.S. Treasury Inflation Indexed Obligations | 0.500% | 1/15/28 | Aaa | 2,744,680 | |||||||||||||||||||||||
$ | 4,891 | Total U.S. Government and Agency Obligations (cost $4,770,486) |
| 4,654,706 |
92
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETIAL PREFERRED – 0.6% |
| |||||||||||||||||||||||||||
Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||
20,600 | AgriBank FCB, (11) | 6.875% | BBB+ | $ | 2,101,200 | |||||||||||||||||||||||
Insurance – 0.3% | ||||||||||||||||||||||||||||
70,000 | Enstar Group Ltd | 7.000% | BB+ | 1,638,000 | ||||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $3,810,000) |
| 3,739,200 | ||||||||||||||||||||||||||
Principal Amount (000) | Description (1) | Optional Call Provision (12) | Ratings (2) | Value | ||||||||||||||||||||||||
MUNICIPAL BONDS – 0.3% | ||||||||||||||||||||||||||||
Georgia – 0.3% | ||||||||||||||||||||||||||||
$ | 1,549 | 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 | BBB+ | $ | 1,744,282 | |||||||||||||||||||||
$ | 1,549 | Total Municipal Bonds (cost $1,684,627) | 1,744,282 | |||||||||||||||||||||||||
Shares | Description (1) | Value | ||||||||||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||||||||||
Building Products – 0.0% | ||||||||||||||||||||||||||||
50 | Dayton Superior Class A, (13), (14) | $ | — | |||||||||||||||||||||||||
55 | Dayton Superior Class 1, (14) | 1 | ||||||||||||||||||||||||||
Total Building Products | 1 | |||||||||||||||||||||||||||
Independent Power & Renewable Electricity Producers – 0.0% | ||||||||||||||||||||||||||||
5,257 | Vistra Energy corporation, (13) | 120,333 | ||||||||||||||||||||||||||
Total Common Stocks (cost $270,029) | 120,334 | |||||||||||||||||||||||||||
Total Long-Term Investments (cost $593,578,591) |
| 570,827,789 | ||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.3% |
| |||||||||||||||||||||||||||
Money Market Funds – 1.3% | ||||||||||||||||||||||||||||
7,773,663 | First American Government Obligations Fund, Class X, (15) |
| 2.355% (16) | $ | 7,773,663 | |||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $7,773,663) |
| 7,773,663 | ||||||||||||||||||||||||||
Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 0.8% | ||||||||||||||||||||||||||||
Money Market Funds – 0.8% | ||||||||||||||||||||||||||||
4,612,653 | First American Treasury Obligations Fund, Class Z |
| 2.358% (16) | $ | 4,612,653 | |||||||||||||||||||||||
Total Short-Term Investments (cost $4,612,653) |
| 4,612,653 | ||||||||||||||||||||||||||
Total Investments (cost $605,964,907) – 101.3% |
| 583,214,105 | ||||||||||||||||||||||||||
Other Assets Less Liabilities – (1.3)% (17) | (7,210,956) | |||||||||||||||||||||||||||
Net Assets – 100% | $ | 576,003,149 |
93
Nuveen Strategic Income Fund(continued)
Portfolio of Investments December 31, 2018
(Unaudited)
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) | ||||||||||||||||
Euro | $ 419,000 | U.S. Dollar | $ | 479,760 | Bank of America, N.A. | 2/08/19 | $ | 1,926 | ||||||||||||||
U.S. Dollar | 11,903,381 | Euro | 10,420,000 | Bank of America, N.A. | 2/08/19 | (75,565 | ) | |||||||||||||||
U.S. Dollar | 7,519,446 | Euro | 6,600,000 | Bank of America, N.A. | 2/08/19 | (67,986 | ) | |||||||||||||||
Total | $ | (141,625 | ) | |||||||||||||||||||
Total unrealized appreciation on forward foreign currency contracts |
| $ | 1,926 | |||||||||||||||||||
Total unrealized depreciation on forward foreign currency contracts |
| $ | (143,551 | ) |
Futures Contracts
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury5-Year Note | Short | (304 | ) | 3/19 | $ | (34,359,219 | ) | $ | (34,865,000 | ) | $ | (505,781 | ) | $ | (76,000) | |||||||||||||
U.S. Treasury10-Year Note | Short | (249 | ) | 3/19 | (29,632,906 | ) | (30,381,890 | ) | (748,984 | ) | (105,204 | ) | ||||||||||||||||
U.S. Treasury Long Bond | Long | 247 | 3/19 | 34,386,802 | 36,062,000 | 1,675,198 | 115,781 | |||||||||||||||||||||
U.S. Treasury Ultra10-Year Note | Short | (220 | ) | 3/19 | (27,709,133 | ) | (28,617,188 | ) | (908,055 | ) | (103,125 | ) | ||||||||||||||||
U.S. Treasury Ultra Bond | Long | 239 | 3/19 | 36,414,017 | 38,396,844 | 1,982,827 | 149,836 | |||||||||||||||||||||
Total | $ | (20,900,439 | ) | $ | (19,405,234 | ) | $ | 1,495,205 | $ | (18,712 | ) | |||||||||||||||||
Total receivable for variation margin on futures contracts | 265,617 | |||||||||||||||||||||||||||
Total payable for variation margin on futures contracts | $ | (284,329 | ) |
* | The aggregate notional amount of long and short-positions is $70,800,819 and $(91,701,258), respectively. |
Interest Rate Swaps – OTC Cleared
Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Effective Date (18) | Maturity Date | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||||
$60,000,000 | Receive | 3-Month LIBOR | 3.032 | % | Semi-Annually | 6/22/18 | 6/22/28 | $ | (1,689,625 | ) | $ | (1,689,625 | ) | $ | (187,251 | ) |
94
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 $7,432,308. |
(4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
(5) | Principal Amount (000) rounds to less than $1,000. |
(6) | Perpetual security. Maturity date is not applicable. |
(7) | 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. |
(8) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(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) | 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. |
(12) | 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. |
(13) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(14) | 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. |
(15) | 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. |
(16) | The rate shown is the annualizedseven-day subsidized yield as of the end of the reporting period. |
(17) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certainover-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. |
(18) | Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract. |
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 know 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.
95
Statement of Assets and Liabilities
December 31, 2018
(Unaudited)
Core Bond | Core Plus Bond | High Income Bond | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $123,414,294, $332,710,969 and $241,311,391, respectively) | $ | 122,262,021 | $ | 326,341,442 | $ | 217,796,873 | ||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | — | 1,434,790 | 22,726,569 | |||||||||
Short-term investments, at value (cost approximates value) | 2,325,343 | 18,962,804 | 4,590,067 | |||||||||
Cash denominated in foreign currencies (cost $—, $— and $34, respectively) | — | — | 34 | |||||||||
Cash | — | — | — | |||||||||
Cash collateral at brokers for investments in futures contracts(1) | 84,000 | 181,000 | — | |||||||||
Cash collateral at brokers for investments in swaps(1) | — | — | — | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | |||||||||
Receivable for: | ||||||||||||
Dividends | — | — | — | |||||||||
Due from broker | — | 661 | 19,580 | |||||||||
Interest | 891,916 | 2,613,991 | 4,332,261 | |||||||||
Investments sold | — | 921 | — | |||||||||
Reclaims | — | 31,127 | — | |||||||||
Shares sold | 1,200,793 | 35,610,378 | 3,840,106 | |||||||||
Variation margin on futures contracts | 32,156 | 93,063 | — | |||||||||
Other assets | 53,314 | 73,159 | 75,491 | |||||||||
Total assets | 126,849,543 | 385,343,336 | 253,380,981 | |||||||||
Liabilities | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | 43,258 | — | |||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | — | 1,434,790 | 22,726,569 | |||||||||
Dividends | 105,043 | 411,889 | 179,096 | |||||||||
Investments purchased | 1,302,498 | 17,358,010 | — | |||||||||
Shares redeemed | 101,664 | 35,850,711 | 2,494,993 | |||||||||
Variation margin on futures contracts | 38,094 | 162,891 | — | |||||||||
Variation margin on swap contracts | — | — | — | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 27,022 | 95,436 | 122,724 | |||||||||
Directors fees | 22,437 | 38,670 | 39,717 | |||||||||
Shareholder servicing agent fees | 10,983 | 49,675 | 41,549 | |||||||||
12b-1 distribution and service fees | 3,904 | 14,996 | 51,668 | |||||||||
Other | 54,675 | 92,209 | 81,268 | |||||||||
Total liabilities | 1,666,320 | 55,552,535 | 25,737,584 | |||||||||
Net assets | $ | 125,183,223 | $ | 329,790,801 | $ | 227,643,397 |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
96
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Assets | ||||||||||||
Long-term investments, at value (cost $593,104,297, $438,297,178 and $593,578,591, respectively) | $ | 576,613,469 | $ | 435,269,738 | $ | 570,827,789 | ||||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 395,375 | 94,027 | 7,773,663 | |||||||||
Short-term investments, at value (cost approximates value) | 3,099,786 | 14,121,428 | 4,612,653 | |||||||||
Cash denominated in foreign currencies (cost $—, $— and $—, respectively) | — | — | — | |||||||||
Cash | 446 | 14,476 | — | |||||||||
Cash collateral at brokers for investments in futures contracts(1) | 151,000 | 201,000 | 974,400 | |||||||||
Cash collateral at brokers for investments in swaps(1) | — | — | 1,984,565 | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 1,926 | |||||||||
Receivable for: | ||||||||||||
Dividends | — | — | 35,407 | |||||||||
Due from broker | 513 | 2,677 | 5,335 | |||||||||
Interest | 1,535,749 | 2,304,094 | 6,051,183 | |||||||||
Investments sold | — | — | 10,951,975 | |||||||||
Reclaims | — | — | — | |||||||||
Shares sold | 3,127,200 | 1,496,632 | 608,551 | |||||||||
Variation margin on futures contracts | 74,193 | 57,375 | 265,617 | |||||||||
Other assets | 67,222 | 96,043 | 94,629 | |||||||||
Total assets | 585,064,953 | 453,657,490 | 604,187,693 | |||||||||
Liabilities | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | 143,551 | |||||||||
Payable for: | ||||||||||||
Collateral from securities lending program | 395,375 | 94,027 | 7,773,663 | |||||||||
Dividends | 658,489 | 425,377 | 713,285 | |||||||||
Investments purchased | — | — | 16,181,093 | |||||||||
Shares redeemed | 2,428,340 | 5,616,192 | 2,300,165 | |||||||||
Variation margin on futures contracts | 50,000 | — | 284,329 | |||||||||
Variation margin on swap contracts | — | — | 187,251 | |||||||||
Accrued expenses: | ||||||||||||
Management fees | 122,367 | 122,601 | 207,466 | |||||||||
Directors fees | 33,253 | 52,011 | 56,993 | |||||||||
Shareholder servicing agent fees | 265,771 | 47,188 | 123,750 | |||||||||
12b-1 distribution and service fees | 24,129 | 31,333 | 61,024 | |||||||||
Other | 109,050 | 90,413 | 151,974 | |||||||||
Total liabilities | 4,086,774 | 6,479,142 | 28,184,544 | |||||||||
Net assets | $ | 580,978,179 | $ | 447,178,348 | $ | 576,003,149 |
(1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
97
Statement of Assets and Liabilities(Unaudited)(continued)
Core | Core Plus Bond | High Income Bond | ||||||||||
Class A Shares | ||||||||||||
Net assets | $ | 13,428,797 | $ | 50,582,255 | $ | 98,653,869 | ||||||
Shares outstanding | 1,425,062 | 4,815,113 | 14,263,545 | |||||||||
Net asset value (“NAV”) per share | $ | 9.42 | $ | 10.50 | $ | 6.92 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 3.00%, 4.25% and 4.75%, respectively, of offering price) | $ | 9.71 | $ | 10.97 | $ | 7.27 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 1,781,771 | $ | 4,476,952 | $ | 34,235,445 | ||||||
Shares outstanding | 189,680 | 428,085 | 4,954,857 | |||||||||
NAV and offering price per share | $ | 9.39 | $ | 10.46 | $ | 6.91 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | — | $ | 1,199,549 | $ | 415,095 | ||||||
Shares outstanding | — | 113,626 | 58,750 | |||||||||
NAV and offering price per share | $ | — | $ | 10.56 | $ | 7.07 | ||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 57,468,883 | $ | 72,092,894 | $ | — | ||||||
Shares outstanding | 6,108,279 | 6,859,179 | — | |||||||||
NAV and offering price per share | $ | 9.41 | $ | 10.51 | $ | — | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 52,503,772 | $ | 201,439,151 | $ | 94,338,988 | ||||||
Shares outstanding | 5,595,632 | 19,208,205 | 13,596,115 | |||||||||
NAV and offering price per share | $ | 9.38 | $ | 10.49 | $ | 6.94 | ||||||
Fund level net assets consist of: | ||||||||||||
Capitalpaid-in | $ | 130,844,957 | $ | 342,997,090 | $ | 373,425,169 | ||||||
Total distributable earnings | (5,661,734 | ) | (13,206,289 | ) | (145,781,773 | ) | ||||||
Fund level net assets | $ | 125,183,223 | $ | 329,790,801 | $ | 227,643,397 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | 0.0001 | 0.0001 | 0.0001 |
See accompanying notes to financial statements.
98
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Class A Shares | ||||||||||||
Net assets | $ | 80,433,369 | $ | 88,060,360 | $ | 80,868,663 | ||||||
Shares outstanding | 7,554,625 | 9,021,991 | 8,170,586 | |||||||||
Net asset value (“NAV”) per share | $ | 10.65 | $ | 9.76 | $ | 9.90 | ||||||
Offering price per share (NAV per share plus maximum sales charge of 4.25%, 2.25% and 4.25%, respectively, of offering price) | $ | 11.12 | $ | 9.98 | $ | 10.34 | ||||||
Class C Shares | ||||||||||||
Net assets | $ | 5,171,340 | $ | 16,317,585 | $ | 48,059,533 | ||||||
Shares outstanding | 494,254 | 1,663,459 | 4,880,940 | |||||||||
NAV and offering price per share | $ | 10.46 | $ | 9.81 | $ | 9.85 | ||||||
Class R3 Shares | ||||||||||||
Net assets | $ | 5,069,349 | $ | 208,378 | $ | 3,593,587 | ||||||
Shares outstanding | 480,615 | 21,281 | 361,749 | |||||||||
NAV and offering price per share | $ | 10.55 | $ | 9.79 | $ | 9.93 | ||||||
Class R6 Shares | ||||||||||||
Net assets | $ | 62,876,478 | $ | 60,558,942 | $ | 42,922,366 | ||||||
Shares outstanding | 5,788,282 | 6,184,806 | 4,322,347 | |||||||||
NAV and offering price per share | $ | 10.86 | $ | 9.79 | $ | 9.93 | ||||||
Class I Shares | ||||||||||||
Net assets | $ | 427,427,643 | $ | 282,033,083 | $ | 400,559,000 | ||||||
Shares outstanding | 39,673,818 | 28,863,940 | 40,477,775 | |||||||||
NAV and offering price per share | $ | 10.77 | $ | 9.77 | $ | 9.90 | ||||||
Fund level net assets consist of: | ||||||||||||
Capitalpaid-in | $ | 601,365,815 | $ | 460,775,467 | $ | 662,072,200 | ||||||
Total distributable earnings | (20,387,636 | ) | (13,597,119 | ) | (86,069,051 | ) | ||||||
Fund level net assets | $ | 580,978,179 | $ | 447,178,348 | $ | 576,003,149 | ||||||
Authorized shares – per class | 2 billion | 2 billion | 2 billion | |||||||||
Par value per share | 0.0001 | 0.0001 | 0.0001 |
See accompanying notes to financial statements.
99
Six Months Ended December 31, 2018
(Unaudited)
Core | Core Plus Bond | High Income Bond | ||||||||||
Investment Income | ||||||||||||
Dividend income | $ | — | $ | — | $ | 269,652 | ||||||
Interest income | 2,239,577 | 6,507,586 | 9,965,670 | |||||||||
Securities lending income | 791 | 8,564 | 149,163 | |||||||||
Total investment income | $ | 2,240,368 | $ | 6,516,150 | $ | 10,384,485 | ||||||
Expenses | ||||||||||||
Management fees | 300,045 | 782,449 | 846,189 | |||||||||
12b-1 service fees – Class A Shares | 15,595 | 64,768 | 152,825 | |||||||||
12b-1 distribution and service fees – Class C Shares | 7,598 | 23,597 | 187,893 | |||||||||
12b-1 distribution and service fees – Class R3 Shares | — | 3,103 | 1,131 | |||||||||
Shareholder servicing agent fees | 22,769 | 108,480 | 80,216 | |||||||||
Custodian fees | 36,876 | 62,905 | 46,202 | |||||||||
Directors fees | 2,012 | 5,019 | 4,796 | |||||||||
Professional fees | 28,676 | 34,171 | 30,666 | |||||||||
Shareholder reporting expenses | 12,427 | 23,937 | 21,851 | |||||||||
Federal and state registration fees | 34,236 | 43,668 | 44,228 | |||||||||
Other | 4,884 | 8,121 | 21,038 | |||||||||
Total expenses before fee waiver/expense reimbursement | 465,118 | 1,160,218 | 1,437,035 | |||||||||
Fee waiver/expense reimbursement | (120,489 | ) | (209,922 | ) | (16,809 | ) | ||||||
Net expenses | 344,629 | 950,296 | 1,420,226 | |||||||||
Net investment income (loss) | 1,895,739 | 5,565,854 | 8,964,259 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | (295,435 | ) | (1,006,411 | ) | (14,789,264 | ) | ||||||
Forward foreign currency contracts | — | 284,673 | (5,032 | ) | ||||||||
Futures contracts | (42,149 | ) | (270,678 | ) | (23,672 | ) | ||||||
Swaps | — | — | (652,436 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments and foreign currency | (75,775 | ) | (2,278,993 | ) | (5,609,399 | ) | ||||||
Forward foreign currency contracts | — | (50,234 | ) | 4,044 | ||||||||
Futures contracts | (75,773 | ) | (251,546 | ) | (9,710 | ) | ||||||
Swaps | — | — | — | |||||||||
Net realized and unrealized gain (loss) | (489,132 | ) | (3,573,189 | ) | (21,085,469 | ) | ||||||
Net increase (decrease) in net assets from operations | $ | 1,406,607 | $ | 1,992,665 | $ | (12,121,210 | ) |
See accompanying notes to financial statements.
100
Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||
Investment Income | ||||||||||||
Dividend income | $ | — | $ | — | $ | 123,898 | ||||||
Interest income | 7,652,255 | 6,160,015 | 15,034,925 | |||||||||
Securities lending income | 3,777 | 11,518 | 54,500 | |||||||||
Total investment income | 7,656,032 | 6,171,533 | 15,213,323 | |||||||||
Expenses | ||||||||||||
Management fees | 1,219,093 | 914,208 | 1,781,763 | |||||||||
12b-1 service fees – Class A Shares | 111,886 | 101,931 | 123,687 | |||||||||
12b-1 distribution and service fees – Class C Shares | 29,092 | 71,829 | 270,131 | |||||||||
12b-1 distribution and service fees – Class R3 Shares | 13,145 | 522 | 11,485 | |||||||||
Shareholder servicing agent fees | 657,751 | 102,272 | 278,138 | |||||||||
Custodian fees | 42,913 | 57,935 | 92,424 | |||||||||
Directors fees | 7,419 | 6,811 | 10,306 | |||||||||
Professional fees | 42,608 | 38,046 | 47,013 | |||||||||
Shareholder reporting expenses | 47,527 | 26,158 | 50,159 | |||||||||
Federal and state registration fees | 42,981 | 47,261 | 45,505 | |||||||||
Other | 6,147 | 8,741 | 11,219 | |||||||||
Total expenses before fee waiver/expense reimbursement | 2,220,562 | 1,375,714 | 2,721,830 | |||||||||
Fee waiver/expense reimbursement | (528,640 | ) | (157,586 | ) | (385,659 | ) | ||||||
Net expenses | 1,691,922 | 1,218,128 | 2,336,171 | |||||||||
Net investment income (loss) | 5,964,110 | 4,953,405 | 12,877,152 | |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments and foreign currency | (1,710,788 | ) | (1,019,569 | ) | (8,384,491 | ) | ||||||
Forward foreign currency contracts | — | — | 939,752 | |||||||||
Futures contracts | 265,846 | (49,857 | ) | (1,442,465 | ) | |||||||
Swaps | — | — | (315,590 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments and foreign currency | (11,628,784 | ) | 1,638,389 | (7,501,151 | ) | |||||||
Forward foreign currency contracts | — | — | (415,201 | ) | ||||||||
Futures contracts | (46,033 | ) | 499,365 | 443,932 | ||||||||
Swaps | — | — | (1,140,595 | ) | ||||||||
Net realized and unrealized gain (loss) | (13,119,759 | ) | 1,068,328 | (17,815,809 | ) | |||||||
Net increase (decrease) in net assets from operations | $ | (7,155,649 | ) | $ | 6,021,733 | $ | (4,938,657 | ) |
See accompanying notes to financial statements.
101
Statement of Changes in Net Assets
(Unaudited)
Core Bond | Core Plus Bond | |||||||||||||||||||
Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 1,895,739 | $ | 3,730,007 | $ | 5,565,854 | $ | 11,471,909 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (295,435 | ) | 295,683 | (1,006,411 | ) | 2,136,849 | ||||||||||||||
Forward foreign currency contracts | — | — | 284,673 | 260,603 | ||||||||||||||||
Futures contracts | (42,149 | ) | 384,629 | (270,678 | ) | (140,795 | ) | |||||||||||||
Options purchased | — | — | — | (16,404 | ) | |||||||||||||||
Swaps | — | — | — | (196,673 | ) | |||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | (75,775 | ) | (4,953,976 | ) | (2,278,993 | ) | (16,352,314 | ) | ||||||||||||
Forward foreign currency contracts | — | — | (50,234 | ) | 201,767 | |||||||||||||||
Futures contracts | (75,773 | ) | (116,123 | ) | (251,546 | ) | (25,668 | ) | ||||||||||||
Options purchased | — | — | — | 13,451 | ||||||||||||||||
Swaps | — | — | — | 3,126 | ||||||||||||||||
Net increase (decrease) in net assets from operations | 1,406,607 | (659,780 | ) | 1,992,665 | (2,644,149 | ) | ||||||||||||||
Distributions to Shareholders(2) | ||||||||||||||||||||
Dividends(3) | ||||||||||||||||||||
Class A Shares | (169,707 | ) | (312,195 | ) | (729,208 | ) | (1,354,695 | ) | ||||||||||||
Class C Shares | (14,931 | ) | (28,258 | ) | (47,930 | ) | (109,438 | ) | ||||||||||||
Class R3 Shares | — | — | (15,978 | ) | (28,053 | ) | ||||||||||||||
Class R6 Shares | (900,605 | ) | (1,566,207 | ) | (413,853 | ) | (642,684 | ) | ||||||||||||
Class I Shares | (791,857 | ) | (1,616,402 | ) | (3,780,058 | ) | (7,299,961 | ) | ||||||||||||
Class T Shares(4) | — | — | — | — | ||||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | — | — | (330,228 | ) | |||||||||||||||
Class C Shares | — | — | — | (38,518 | ) | |||||||||||||||
Class R3 Shares | — | — | — | (7,596 | ) | |||||||||||||||
Class R6 Shares | — | — | — | (143,924 | ) | |||||||||||||||
Class I Shares | — | — | — | (1,631,224 | ) | |||||||||||||||
Class T Shares(4) | — | — | — | — | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (1,877,100 | ) | (3,523,062 | ) | (4,987,027 | ) | (11,586,321 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 8,679,038 | 24,109,504 | 72,902,571 | 75,164,167 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 1,262,438 | 2,291,497 | 2,885,188 | 6,815,299 | ||||||||||||||||
9,941,476 | 26,401,001 | 75,787,759 | 81,979,466 | |||||||||||||||||
Cost of shares redeemed | (18,693,951 | ) | (30,787,295 | ) | (81,726,960 | ) | (88,847,869 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (8,752,475 | ) | (4,386,294 | ) | (5,939,201 | ) | (6,868,403 | ) | ||||||||||||
Net increase (decrease) in net assets | (9,222,968 | ) | (8,569,136 | ) | (8,933,563 | ) | (21,098,873 | ) | ||||||||||||
Net assets at the beginning of period | 134,406,191 | 142,975,327 | 338,724,364 | 359,823,237 | ||||||||||||||||
Net assets at the end of period | $ | 125,183,223 | $ | 134,406,191 | $ | 329,790,801 | $ | 338,724,364 |
(1) | Prior period amounts have been conformed to current year presentation. See Notes to Financial Statements, Note 9 – New Accounting Pronouncements for further details. |
(2) | The composition and per share amounts of the Fund’s distributions are presented in the Financial Highlights. The distribution information for the Fund as of its most recent tax year end is presented within the Notes to Financial Statements, Note 6 – Income Tax Information. |
(3) | For the fiscal year ended June 30, 2018 the Fund’s distributions to shareholders were paid from net investment income. |
(4) | Class T Shares were not available for public offering. |
See accompanying notes to financial statements.
102
High Income Bond | Inflation Protected Securities | |||||||||||||||||||
Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 8,964,259 | $ | 23,182,827 | $ | 5,964,110 | $ | 14,420,489 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (14,789,264 | ) | (11,134,618 | ) | (1,710,788 | ) | 101,938 | |||||||||||||
Forward foreign currency contracts | (5,032 | ) | (180,664 | ) | — | — | ||||||||||||||
Futures contracts | (23,672 | ) | (84,799 | ) | 265,846 | 787,375 | ||||||||||||||
Options purchased | — | — | — | — | ||||||||||||||||
Swaps | (652,436 | ) | (78,738 | ) | — | — | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | (5,609,399 | ) | (1,990,985 | ) | (11,628,784 | ) | (5,093,673 | ) | ||||||||||||
Forward foreign currency contracts | 4,044 | 178,031 | — | — | ||||||||||||||||
Futures contracts | (9,710 | ) | 12,573 | (46,033 | ) | (129,279 | ) | |||||||||||||
Options purchased | — | — | — | — | ||||||||||||||||
Swaps | — | — | — | — | ||||||||||||||||
Net increase (decrease) in net assets from operations | (12,121,210 | ) | 9,903,627 | (7,155,649 | ) | 10,086,850 | ||||||||||||||
Distributions to Shareholders(2) | ||||||||||||||||||||
Dividends(3) | ||||||||||||||||||||
Class A Shares | (4,226,240 | ) | (8,890,635 | ) | (891,768 | ) | (2,671,390 | ) | ||||||||||||
Class C Shares | (1,149,751 | ) | (2,854,928 | ) | (43,349 | ) | (182,575 | ) | ||||||||||||
Class R3 Shares | (14,975 | ) | (40,945 | ) | (46,780 | ) | (131,482 | ) | ||||||||||||
Class R6 Shares | — | — | (680,012 | ) | (1,448,758 | ) | ||||||||||||||
Class I Shares | (4,482,056 | ) | (11,881,293 | ) | (4,804,018 | ) | (12,804,131 | ) | ||||||||||||
Class T Shares(4) | — | (1,688 | ) | — | — | |||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | — | — | — | ||||||||||||||||
Class C Shares | — | — | — | — | ||||||||||||||||
Class R3 Shares | — | — | — | — | ||||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | — | — | — | ||||||||||||||||
Class T Shares(4) | — | — | — | — | ||||||||||||||||
Decrease in net assets from distributions to shareholders | (9,873,022 | ) | (23,669,489 | ) | (6,465,927 | ) | (17,238,336 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 92,989,548 | 320,649,681 | 114,893,415 | 215,916,601 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 8,533,120 | 20,124,847 | 2,584,564 | 6,651,234 | ||||||||||||||||
101,522,668 | 340,774,528 | 117,477,979 | 222,567,835 | |||||||||||||||||
Cost of shares redeemed | (159,655,767 | ) | (405,002,409 | ) | (140,606,946 | ) | (201,038,600 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (58,133,099 | ) | (64,227,881 | ) | (23,128,967 | ) | 21,529,235 | |||||||||||||
Net increase (decrease) in net assets | (80,127,331 | ) | (77,993,743 | ) | (36,750,543 | ) | 14,377,749 | |||||||||||||
Net assets at the beginning of period | 307,770,728 | 385,764,471 | 617,728,722 | 603,350,973 | ||||||||||||||||
Net assets at the end of period | $ | 227,643,397 | $ | 307,770,728 | $ | 580,978,179 | $ | 617,728,722 |
(1) | Prior period amounts have been conformed to current year presentation. See Notes to Financial Statements, Note 9 – New Accounting Pronouncements for further details. |
(2) | The composition and per share amounts of the Fund’s distributions are presented in the Financial Highlights. The distribution information for the Fund as of its most recent tax year end is presented within the Notes to Financial Statements, Note 6 – Income Tax Information. |
(3) | For the fiscal year ended June 30, 2018 the Fund’s distributions to shareholders were paid from net investment income. |
(4) | Class T Shares were not available for public offering. |
See accompanying notes to financial statements.
103
Statement of Changes in Net Assets(Unaudited) (continued)
Short Term Bond | Strategic Income | |||||||||||||||||||
Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | Six Months Ended 12/31/18 | Year Ended(1) 6/30/18 | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 4,953,405 | $ | 9,881,517 | $ | 12,877,152 | $ | 27,614,759 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (1,019,569 | ) | (681,127 | ) | (8,384,491 | ) | (312,181 | ) | ||||||||||||
Forward foreign currency contracts | — | — | 939,752 | 281,199 | ||||||||||||||||
Futures contracts | (49,857 | ) | (703,560 | ) | (1,442,465 | ) | 2,768,614 | |||||||||||||
Options purchased | — | — | — | (174,197 | ) | |||||||||||||||
Swaps | — | — | (315,590 | ) | (2,912,985 | ) | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | 1,638,389 | (5,638,530 | ) | (7,501,151 | ) | (33,436,656 | ) | |||||||||||||
Forward foreign currency contracts | — | — | (415,201 | ) | 1,217,587 | |||||||||||||||
Futures contracts | 499,365 | (31,944 | ) | 443,932 | 33,519 | |||||||||||||||
Options purchased | — | — | — | 58,501 | ||||||||||||||||
Swaps | — | — | (1,140,595 | ) | (8,602 | ) | ||||||||||||||
Net increase (decrease) in net assets from operations | 6,021,733 | 2,826,356 | (4,938,657 | ) | (4,870,442 | ) | ||||||||||||||
Distributions to Shareholders(2) | ||||||||||||||||||||
Dividends(3) | ||||||||||||||||||||
Class A Shares | (803,757 | ) | (1,393,789 | ) | (1,713,228 | ) | (2,624,560 | ) | ||||||||||||
Class C Shares | (83,573 | ) | (175,019 | ) | (732,878 | ) | (911,063 | ) | ||||||||||||
Class R3 Shares | (1,748 | ) | (5,046 | ) | (73,441 | ) | (122,444 | ) | ||||||||||||
Class R6 Shares | (762,742 | ) | (1,691,840 | ) | (814,820 | ) | (833,771 | ) | ||||||||||||
Class I Shares | (3,142,520 | ) | (5,977,163 | ) | (8,574,148 | ) | (12,250,306 | ) | ||||||||||||
Class T Shares(4) | — | — | — | (504 | ) | |||||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | — | — | (2,364,360 | ) | |||||||||||||||
Class C Shares | — | — | — | (1,310,645 | ) | |||||||||||||||
Class R3 Shares | — | — | — | (125,534 | ) | |||||||||||||||
Class R6 Shares | — | — | — | (728,959 | ) | |||||||||||||||
Class I Shares | — | — | — | (10,039,433 | ) | |||||||||||||||
Class T Shares(4) | — | — | — | (459 | ) | |||||||||||||||
Decrease in net assets from distributions to shareholders | (4,794,340 | ) | (9,242,857 | ) | (11,908,515 | ) | (31,312,038 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 101,894,191 | 161,733,139 | 46,021,299 | 234,165,148 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 2,338,114 | 4,722,287 | 7,278,849 | 18,990,554 | ||||||||||||||||
104,232,305 | 166,455,426 | 53,300,148 | 253,155,702 | |||||||||||||||||
Cost of shares redeemed | (121,751,367 | ) | (258,266,815 | ) | (172,445,798 | ) | (275,270,261 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (17,519,062 | ) | (91,811,389 | ) | (119,145,650 | ) | (22,114,559 | ) | ||||||||||||
Net increase (decrease) in net assets | (16,291,669 | ) | (98,227,890 | ) | (135,992,822 | ) | (58,297,039 | ) | ||||||||||||
Net assets at the beginning of period | 463,470,017 | 561,697,907 | 711,995,971 | 770,293,010 | ||||||||||||||||
Net assets at the end of period | $ | 447,178,348 | $ | 463,470,017 | $ | 576,003,149 | $ | 711,995,971 |
(1) | Prior period amounts have been conformed to current year presentation. See Notes to Financial Statements, Note 9 – New Accounting Pronouncements for further details. |
(2) | The composition and per share amounts of the Fund’s distributions are presented in the Financial Highlights. The distribution information for the Fund as of its most recent tax year end is presented within the Notes to Financial Statements, Note 6 – Income Tax Information. |
(3) | For the fiscal year ended June 30, 2018 the Fund’s distributions to shareholders were paid from net investment income. |
(4) | Class T Shares were not available for public offering. |
See accompanying notes to financial statements.
104
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105
(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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | $ | 9.46 | $ | 0.13 | $ | (0.04 | ) | $ | 0.09 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | 9.42 | |||||||||||||||||||
2018 | 9.76 | 0.24 | (0.31 | ) | (0.07 | ) | (0.23 | ) | — | — | (0.23 | ) | 9.46 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class C (1/11) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.43 | 0.09 | (0.04 | ) | 0.05 | (0.09 | ) | — | — | (0.09 | ) | 9.39 | ||||||||||||||||||||||||||||
2018 | 9.73 | 0.17 | (0.31 | ) | (0.14 | ) | (0.16 | ) | — | — | (0.16 | ) | 9.43 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.44 | 0.14 | (0.03 | ) | 0.11 | (0.14 | ) | — | — | (0.14 | ) | 9.41 | ||||||||||||||||||||||||||||
2018 | 9.74 | 0.27 | (0.32 | ) | (0.05 | ) | (0.25 | ) | — | — | (0.25 | ) | 9.44 | |||||||||||||||||||||||||||
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.42 | 0.14 | (0.04 | ) | 0.10 | (0.14 | ) | — | — | (0.14 | ) | 9.38 | ||||||||||||||||||||||||||||
2018 | 9.72 | 0.26 | (0.31 | ) | (0.05 | ) | (0.25 | ) | — | — | (0.25 | ) | 9.42 | |||||||||||||||||||||||||||
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 |
106
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) | ||||||||||||||||||||||||||||
0.95 | % | $ | 13,429 | 0.97 | %* | 2.54 | %* | 0.78 | %* | 2.73 | %* | 11 | % | |||||||||||||||||||||
(0.76 | ) | 12,577 | 0.96 | 2.31 | 0.78 | 2.49 | 47 | |||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||
0.57 | 1,782 | 1.72 | * | 1.79 | * | 1.53 | * | 1.98 | * | 11 | ||||||||||||||||||||||||
(1.50 | ) | 1,709 | 1.71 | 1.55 | 1.53 | 1.73 | 47 | |||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||
1.19 | 57,469 | 0.66 | * | 2.85 | * | 0.47 | * | 3.03 | * | 11 | ||||||||||||||||||||||||
(0.51 | ) | 64,539 | 0.65 | 2.63 | 0.47 | 2.81 | 47 | |||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||
1.08 | 52,504 | 0.72 | * | 2.79 | * | 0.53 | * | 2.98 | * | 11 | ||||||||||||||||||||||||
(0.51 | ) | 55,581 | 0.71 | 2.55 | 0.53 | 2.73 | 47 | |||||||||||||||||||||||||||
(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 |
(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, 2018. |
* | Annualized. |
See accompanying notes to financial statements.
107
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | $ | 10.61 | $ | 0.17 | $ | (0.13 | ) | $ | 0.04 | $ | (0.15 | ) | $ | — | $ | — | $ | (0.15 | ) | $ | 10.50 | |||||||||||||||||||
2018 | 11.04 | 0.33 | (0.43 | ) | (0.10 | ) | (0.26 | ) | — | (0.07 | ) | (0.33 | ) | 10.61 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class C (2/99) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.56 | 0.13 | (0.12 | ) | 0.01 | (0.11 | ) | — | — | (0.11 | ) | 10.46 | ||||||||||||||||||||||||||||
2018 | 10.98 | 0.24 | (0.41 | ) | (0.17 | ) | (0.18 | ) | — | (0.07 | ) | (0.25 | ) | 10.56 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R3 (9/01) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.66 | 0.15 | (0.11 | ) | 0.04 | (0.14 | ) | — | — | (0.14 | ) | 10.56 | ||||||||||||||||||||||||||||
2018 | 11.09 | 0.30 | (0.42 | ) | (0.12 | ) | (0.24 | ) | — | (0.07 | ) | (0.31 | ) | 10.66 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.61 | 0.18 | (0.12 | ) | 0.06 | (0.16 | ) | — | — | (0.16 | ) | 10.51 | ||||||||||||||||||||||||||||
2018 | 11.03 | 0.36 | (0.42 | ) | (0.06 | ) | (0.29 | ) | — | (0.07 | ) | (0.36 | ) | 10.61 | ||||||||||||||||||||||||||
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.59 | 0.18 | (0.12 | ) | 0.06 | (0.16 | ) | — | — | (0.16 | ) | 10.49 | ||||||||||||||||||||||||||||
2018 | 11.01 | 0.35 | (0.41 | ) | (0.06 | ) | (0.29 | ) | — | (0.07 | ) | (0.36 | ) | 10.59 | ||||||||||||||||||||||||||
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 |
108
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) | ||||||||||||||||||||||||||||
0.38 | % | $ | 50,582 | 0.90 | %* | 3.01 | %* | 0.77 | %* | 3.14 | %* | 7 | % | |||||||||||||||||||||
(0.93 | ) | 52,126 | 0.90 | 2.86 | 0.77 | 2.99 | 97 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
0.07 | 4,477 | 1.65 | * | 2.26 | * | 1.52 | * | 2.38 | * | 7 | ||||||||||||||||||||||||
(1.61 | ) | 5,484 | 1.65 | 2.11 | 1.52 | 2.24 | 97 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
0.36 | 1,200 | 1.15 | * | 2.76 | * | 1.02 | * | 2.89 | * | 7 | ||||||||||||||||||||||||
(1.14 | ) | 1,265 | 1.15 | 2.61 | 1.02 | 2.74 | 97 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
0.59 | 72,093 | 0.58 | * | 3.33 | * | 0.46 | * | 3.45 | * | 7 | ||||||||||||||||||||||||
(0.62 | ) | 23,377 | 0.59 | 3.18 | 0.46 | 3.30 | 97 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
0.59 | 201,439 | 0.65 | * | 3.26 | * | 0.52 | * | 3.39 | * | 7 | ||||||||||||||||||||||||
(0.62 | ) | 256,472 | 0.65 | 3.11 | 0.52 | 3.24 | 97 | |||||||||||||||||||||||||||
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 |
(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, 2018. |
* | Annualized. |
See accompanying notes to financial statements.
109
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) | ||||||||||||||||||||||||||||||||||||
2019(e) | $ | 7.51 | $ | 0.23 | $ | (0.56 | ) | $ | (0.33 | ) | $ | (0.26 | ) | $ | — | $ | (0.26 | ) | $ | 6.92 | ||||||||||||||||
2018 | 7.80 | 0.52 | (0.28 | ) | 0.24 | (0.53 | ) | — | (0.53 | ) | 7.51 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Class C (8/01) | ||||||||||||||||||||||||||||||||||||
2019(e) | 7.50 | 0.21 | (0.57 | ) | (0.36 | ) | (0.23 | ) | — | (0.23 | ) | 6.91 | ||||||||||||||||||||||||
2018 | 7.79 | 0.46 | (0.28 | ) | 0.18 | (0.47 | ) | — | (0.47 | ) | 7.50 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||
2019(e) | 7.67 | 0.23 | (0.58 | ) | (0.35 | ) | (0.25 | ) | — | (0.25 | ) | 7.07 | ||||||||||||||||||||||||
2018 | 7.96 | 0.52 | (0.29 | ) | 0.23 | (0.52 | ) | — | (0.52 | ) | 7.67 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Class I (8/01) | ||||||||||||||||||||||||||||||||||||
2019(e) | 7.54 | 0.24 | (0.57 | ) | (0.33 | ) | (0.27 | ) | — | (0.27 | ) | 6.94 | ||||||||||||||||||||||||
2018 | 7.82 | 0.54 | (0.27 | ) | 0.27 | (0.55 | ) | — | (0.55 | ) | 7.54 | |||||||||||||||||||||||||
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 |
110
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) | ||||||||||||||||||||||||||||
(4.57 | )% | $ | 98,654 | 1.02 | %* | 6.24 | %* | 1.00 | %* | 6.25 | %* | 42 | % | |||||||||||||||||||||
3.16 | 126,376 | 1.04 | 6.66 | 1.00 | 6.70 | 126 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(4.96 | ) | 34,235 | 1.77 | * | 5.50 | * | 1.75 | * | 5.52 | * | 42 | |||||||||||||||||||||||
2.37 | 41,121 | 1.80 | 5.96 | 1.75 | 6.00 | 126 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(4.68 | ) | 415 | 1.27 | * | 6.01 | * | 1.25 | * | 6.02 | * | 42 | |||||||||||||||||||||||
2.94 | 473 | 1.30 | 6.48 | 1.25 | 6.52 | 126 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(4.57 | ) | 94,339 | 0.78 | * | 6.48 | * | 0.75 | * | 6.51 | * | 42 | |||||||||||||||||||||||
3.52 | 139,777 | 0.79 | 6.91 | 0.75 | 6.95 | 126 | ||||||||||||||||||||||||||||
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 |
(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, 2014 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) | For the six months ended December 31, 2018. |
* | Annualized. |
See accompanying notes to financial statements.
111
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | $ | 10.89 | $ | 0.10 | $ | (0.23 | ) | $ | (0.13 | ) | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | 10.65 | ||||||||||||||||||
2018 | 11.01 | 0.23 | (0.06 | ) | 0.17 | (0.29 | ) | — | — | (0.29 | ) | 10.89 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class C (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.71 | 0.06 | (0.24 | ) | (0.18 | ) | (0.07 | ) | — | — | (0.07 | ) | 10.46 | |||||||||||||||||||||||||||
2018 | 10.83 | 0.14 | (0.06 | ) | 0.08 | (0.20 | ) | — | — | (0.20 | ) | 10.71 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R3 (10/04) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 10.79 | 0.08 | (0.23 | ) | (0.15 | ) | (0.09 | ) | — | — | (0.09 | ) | 10.55 | |||||||||||||||||||||||||||
2018 | 10.91 | 0.21 | (0.07 | ) | 0.14 | (0.26 | ) | — | — | (0.26 | ) | 10.79 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 11.10 | 0.12 | (0.24 | ) | (0.12 | ) | (0.12 | ) | — | — | (0.12 | ) | 10.86 | |||||||||||||||||||||||||||
2018 | 11.19 | 0.33 | (0.10 | ) | 0.23 | (0.32 | ) | — | — | (0.32 | ) | 11.10 | ||||||||||||||||||||||||||||
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 11.02 | 0.11 | (0.24 | ) | (0.13 | ) | (0.12 | ) | — | — | (0.12 | ) | 10.77 | |||||||||||||||||||||||||||
2018 | 11.14 | 0.26 | (0.06 | ) | 0.20 | (0.32 | ) | — | — | (0.32 | ) | 11.02 | ||||||||||||||||||||||||||||
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 |
112
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) | ||||||||||||||||||||||||||||
(1.23 | )% | $ | 80,433 | 0.96 | %** | 1.60 | %** | 0.78 | %** | 1.78 | %** | 7 | % | |||||||||||||||||||||
1.53 | 98,003 | 0.97 | 1.93 | 0.78 | 2.12 | 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 | ||||||||||||||||||||||||||||
(1.67 | ) | 5,171 | 1.70 | ** | (0.97 | )** | 1.53 | ** | 1.14 | ** | 7 | |||||||||||||||||||||||
0.77 | 9,328 | 1.72 | 1.15 | 1.53 | 1.34 | 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 | ||||||||||||||||||||||||||||
(1.35 | ) | 5,069 | 1.21 | ** | 1.34 | ** | 1.03 | ** | 1.51 | ** | 7 | |||||||||||||||||||||||
1.26 | 5,697 | 1.22 | 1.76 | 1.03 | 1.94 | 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 | ||||||||||||||||||||||||||||
(1.08 | ) | 62,876 | 0.47 | ** | 2.05 | ** | 0.30 | ** | 2.22 | ** | 7 | |||||||||||||||||||||||
2.06 | 62,119 | 0.48 | 2.76 | 0.28 | 2.95 | 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 | |||||||||||||||||||||||
(1.19 | ) | 427,428 | 0.71 | ** | 1.81 | ** | 0.53 | ** | 1.99 | ** | 7 | |||||||||||||||||||||||
1.79 | 442,581 | 0.72 | 2.18 | 0.53 | 2.36 | 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 |
(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, 2018. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
113
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | $ | 9.73 | $ | 0.10 | $ | 0.03 | $ | 0.13 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | 9.76 | ||||||||||||||||||||
2018 | 9.86 | 0.17 | (0.14 | ) | 0.03 | (0.16 | ) | — | — | (0.16 | ) | 9.73 | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class C (10/09) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.78 | 0.06 | 0.03 | 0.09 | (0.06 | ) | — | — | (0.06 | ) | 9.81 | |||||||||||||||||||||||||||||
2018 | 9.90 | 0.10 | (0.14 | ) | (0.04 | ) | (0.08 | ) | — | — | (0.08 | ) | 9.78 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class R3 (9/11) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.76 | 0.09 | 0.02 | 0.11 | (0.08 | ) | — | — | (0.08 | ) | 9.79 | |||||||||||||||||||||||||||||
2018 | 9.88 | 0.14 | (0.13 | ) | 0.01 | (0.13 | ) | — | — | (0.13 | ) | 9.76 | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class R6 (1/15) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.76 | 0.11 | 0.03 | 0.14 | (0.11 | ) | — | — | (0.11 | ) | 9.79 | |||||||||||||||||||||||||||||
2018 | 9.88 | 0.20 | (0.14 | ) | 0.06 | (0.18 | ) | — | — | (0.18 | ) | 9.76 | ||||||||||||||||||||||||||||
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) |
| |||||||||||||||||||||||||||||||||||||||
2019(f) | 9.74 | 0.11 | 0.03 | 0.14 | (0.11 | ) | — | — | (0.11 | ) | 9.77 | |||||||||||||||||||||||||||||
2018 | 9.87 | 0.19 | (0.14 | ) | 0.05 | (0.18 | ) | — | — | (0.18 | ) | 9.74 | ||||||||||||||||||||||||||||
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 |
114
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) | ||||||||||||||||||||||||||||
1.31 | % | $ | 88,060 | 0.79 | %** | 1.96 | %** | 0.72 | %** | 2.03 | %** | 19 | % | |||||||||||||||||||||
0.30 | 78,315 | 0.78 | 1.66 | 0.72 | 1.72 | 60 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
0.90 | 16,318 | 1.54 | ** | 1.19 | ** | 1.47 | ** | 1.27 | ** | 19 | ||||||||||||||||||||||||
(0.40 | ) | 16,767 | 1.54 | 0.90 | 1.47 | 0.97 | 60 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
1.16 | 208 | 1.04 | ** | 1.70 | ** | 0.97 | ** | 1.77 | ** | 19 | ||||||||||||||||||||||||
0.09 | 204 | 1.03 | 1.40 | 0.97 | 1.46 | 60 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
1.43 | 60,559 | 0.49 | ** | 2.24 | ** | 0.42 | ** | 2.31 | ** | 19 | ||||||||||||||||||||||||
0.64 | 77,313 | 0.49 | 1.95 | 0.42 | 2.02 | 60 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
1.43 | 282,033 | 0.54 | ** | 2.20 | ** | 0.47 | ** | 2.27 | ** | 19 | ||||||||||||||||||||||||
0.54 | 290,872 | 0.53 | 1.91 | 0.47 | 1.97 | 60 | ||||||||||||||||||||||||||||
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 |
(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, 2018. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
115
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) | ||||||||||||||||||||||||||||||||||||||||
2019(f) | $ | 10.17 | $ | 0.19 | $ | (0.28 | ) | $ | (0.09 | ) | $ | (0.18 | ) | $ | — | $ | — | $ | (0.18 | ) | $ | 9.90 | ||||||||||||||||||
2018 | 10.65 | 0.36 | (0.43 | ) | (0.07 | ) | (0.21 | ) | — | (0.20 | ) | (0.41 | ) | 10.17 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||||||
2019(f) | 10.12 | 0.15 | (0.28 | ) | (0.13 | ) | (0.14 | ) | — | — | (0.14 | ) | 9.85 | |||||||||||||||||||||||||||
2018 | 10.59 | 0.28 | (0.42 | ) | (0.14 | ) | (0.13 | ) | — | (0.20 | ) | (0.33 | ) | 10.12 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||||||
2019(f) | 10.21 | 0.18 | (0.29 | ) | (0.11 | ) | (0.17 | ) | — | — | (0.17 | ) | 9.93 | |||||||||||||||||||||||||||
2018 | 10.69 | 0.33 | (0.42 | ) | (0.09 | ) | (0.19 | ) | — | (0.20 | ) | (0.39 | ) | 10.21 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Class R6 (1/15) | ||||||||||||||||||||||||||||||||||||||||
2019(f) | 10.20 | 0.21 | (0.29 | ) | (0.08 | ) | (0.19 | ) | — | — | (0.19 | ) | 9.93 | |||||||||||||||||||||||||||
2018 | 10.67 | 0.39 | (0.42 | ) | (0.03 | ) | (0.24 | ) | — | (0.20 | ) | (0.44 | ) | 10.20 | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||||
2019(f) | 10.17 | 0.20 | (0.28 | ) | (0.08 | ) | (0.19 | ) | — | — | (0.19 | ) | 9.90 | |||||||||||||||||||||||||||
2018 | 10.65 | 0.38 | (0.42 | ) | (0.04 | ) | (0.24 | ) | — | (0.20 | ) | (0.44 | ) | 10.17 | ||||||||||||||||||||||||||
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 |
116
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets Before Waive/Reimbursement | 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) | ||||||||||||||||||||||||||||
(0.94 | )% | $ | 80,869 | 0.95 | %* | 3.62 | %* | 0.84 | %* | 3.73 | %* | 7 | % | |||||||||||||||||||||
(0.70 | ) | 106,805 | 0.93 | 3.31 | 0.83 | 3.41 | 124 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(1.32 | ) | 48,060 | 1.70 | * | 2.87 | * | 1.59 | * | 2.98 | * | 7 | |||||||||||||||||||||||
(1.40 | ) | 59,612 | 1.68 | 2.56 | 1.58 | 2.66 | 124 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(1.15 | ) | 3,594 | 1.20 | * | 3.34 | * | 1.09 | * | 3.45 | * | 7 | |||||||||||||||||||||||
(0.92 | ) | 5,869 | 1.18 | 3.06 | 1.08 | 3.16 | 124 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
(0.82 | ) | 42,922 | 0.62 | * | 3.95 | * | 0.50 | * | 4.07 | * | 7 | |||||||||||||||||||||||
(0.38 | ) | 46,588 | 0.60 | 3.65 | 0.50 | 3.75 | 124 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
(0.82 | ) | 400,559 | 0.70 | * | 3.87 | * | 0.59 | * | 3.99 | * | 7 | |||||||||||||||||||||||
(0.47 | ) | 493,098 | 0.68 | 3.56 | 0.58 | 3.67 | 124 | |||||||||||||||||||||||||||
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 |
(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, 2018. |
* | Annualized. |
See accompanying notes to financial statements.
117
(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, 2018, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2018 (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.
Fund Reorganizations
In December 2018 the Funds’ Board of Trustees of the Trust and the Board of Trustees of TIAA-CREF Funds (“TC Funds”) have each approved the reorganizations of Core Bond, Core Plus Bond, High Income Bond, Inflation Protected Securities and Short Term Bond (each a “Target Fund” and together the “Target Funds”) into TIAA-CREF Bond Fund, TIAA-CREF Bond Plus Fund, TIAA-CREF High-Yield Fund, TIAA-CREF Inflation-Linked Bond Fund and TIAA-CREF Short-Term Bond Fund (each an “Acquiring Fund” and together the “Acquiring Funds”), each a series of TC Funds. In order for the reorganization to occur for a Target Fund, it must be approved by the shareholders of that Fund.
For each Target Fund, if the Target Fund’s shareholders approve the reorganization, the Target Fund will transfer all of its assets and liabilities to the Acquiring Fund in exchange for Acquiring Fund shares of equal value. These Acquiring Fund shares will then be distributed to Target Fund shareholders and the Target Fund will be terminated. As a result of these transactions, Target Fund shareholders will become shareholders of the Acquiring Fund and will cease to be shareholders of the Target Fund. Each Target Fund shareholder will receive Acquiring Fund shares with a total value equal to the total value of that shareholder’s Target Fund shares immediately prior to the closing of the reorganization.
A special meeting of the Target Fund’s shareholders for the purpose of voting on the reorganization is expected to be held in April or early May 2019. If the required approval is obtained, it is anticipated that the reorganization will be consummated approximately two months after the special shareholder meeting. Further information regarding the proposed reorganization will be contained in proxy materials that are expected to be sent to shareholders of the Target Fund in February or early March 2019.
Each Target Fund will continue sales and redemptions of its shares as described in the prospectus until shortly before its reorganization. However, holders of shares purchased after the record date set for the Target Fund’s special meeting of shareholders will not be entitled to vote those shares at the special meeting.
118
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 | $ | 1,302,498 | $ | 17,358,010 | $ | 16,181,093 |
Investment Income
Dividend income is recorded on theex-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.
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 theex-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% (0.75% for Short Term Bond) if redeemed within twelve 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 C Shares automatically convert to Class A Shares ten years after purchase. Class R3 Shares are sold without an up-front sales charge but incur a 0.25% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Sub-transfer agent fees 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.
119
Notes to Financial Statements(Unaudited) (continued)
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.
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, credit spreads, 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.
120
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.
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 thepre-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 apre-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 innon-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
Core Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 61,529,963 | $ | — | $ | 61,529,963 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 47,742,736 | — | 47,742,736 | ||||||||||||
U.S Government and Agency Obligations | — | 11,294,306 | — | 11,294,306 | ||||||||||||
Municipal Bonds | — | 1,061,866 | — | 1,061,866 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 633,150 | — | 633,150 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 2,325,343 | — | — | 2,325,343 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | (226 | ) | — | — | (226 | ) | ||||||||||
Total | $ | 2,325,117 | $ | 122,262,021 | $ | — | $ | 124,587,138 |
* | 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. |
121
Notes to Financial Statements(Unaudited) (continued)
Core Plus Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 136,654,780 | $ | — | $ | 136,654,780 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 134,955,317 | — | 134,955,317 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 17,871,113 | — | 17,871,113 | ||||||||||||
U.S. Government and Agency Obligations | — | 15,405,786 | — | 15,405,786 | ||||||||||||
Sovereign Debt | — | 10,742,838 | — | 10,742,838 | ||||||||||||
Contingent Capital Securities | — | 8,550,012 | — | 8,550,012 | ||||||||||||
Municipal Bonds | — | 2,161,596 | — | 2,161,596 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 1,434,790 | — | — | 1,434,790 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 18,962,804 | — | — | 18,962,804 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Contracts** | — | (43,258 | ) | — | (43,258 | ) | ||||||||||
Futures Contracts** | (64,672 | ) | — | — | (64,672 | ) | ||||||||||
Total | $ | 20,332,922 | $ | 326,298,184 | $ | — | $ | 346,631,106 | ||||||||
High Income Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 195,079,501 | $ | — | $ | 195,079,501 | ||||||||
$1,000 Par (or similar) Institutional Preferred | — | 7,164,531 | — | 7,164,531 | ||||||||||||
Contingent Capital Securities | — | 6,431,416 | — | 6,431,416 | ||||||||||||
Variable Rate Senior Loans Interests | — | 6,151,760 | — | 6,151,760 | ||||||||||||
$25 Par (or similar) Retail Preferred | 1,999,121 | — | — | 1,999,121 | ||||||||||||
Sovereign Debt | — | 964,000 | — | 964,000 | ||||||||||||
Common Stocks | 1,527 | — | 5,017 | *** | 6,544 | |||||||||||
Warrants | — | — | — | **** | — | |||||||||||
Investments Purchased with Collateral from Securities Lending | 22,726,569 | — | — | 22,726,569 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 4,590,067 | — | — | 4,590,067 | ||||||||||||
Total | $ | 29,317,284 | $ | 215,791,208 | $ | 5,017 | $ | 245,113,509 | ||||||||
Inflation Protected Securities | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
U.S. Government and Agency Obligations | $ | — | $ | 506,017,001 | $ | — | $ | 506,017,001 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 59,197,466 | — | 59,197,466 | ||||||||||||
Corporate Bonds | — | 9,622,001 | — | 9,622,001 | ||||||||||||
Sovereign Debt | — | 1,777,001 | — | 1,777,001 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 395,375 | — | — | 395,375 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 3,099,786 | — | — | 3,099,786 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 74,103 | — | — | 74,103 | ||||||||||||
Total | $ | 3,569,264 | $ | 576,613,469 | $ | — | $ | 580,182,733 | ||||||||
Short Term Bond | ||||||||||||||||
Long-Term Investments*: | ||||||||||||||||
Asset-Backed and Mortgage-Backed Securities | $ | — | $ | 206,878,520 | $ | — | $ | 206,878,520 | ||||||||
Corporate Bonds | — | 166,074,908 | — | 166,074,908 | ||||||||||||
U.S. Government and Agency Obligations | — | 62,316,310 | — | 62,316,310 | ||||||||||||
Investments Purchased with Collateral from Securities Lending | 94,027 | — | — | 94,027 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 14,121,428 | — | — | 14,121,428 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | 497,664 | — | — | 497,664 | ||||||||||||
Total | $ | 14,713,119 | $ | 435,269,738 | $ | — | $ | 449,982,857 |
* | 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, where applicable. |
**** | 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. |
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Strategic Income | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 310,201,869 | $ | — | $ | 310,201,869 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 120,034,402 | — | 120,034,402 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 55,297,645 | — | 55,297,645 | ||||||||||||
Contingent Capital Securities | — | 40,078,144 | — | 40,078,144 | ||||||||||||
Sovereign Debt | — | 30,146,467 | — | 30,146,467 | ||||||||||||
Variable Rate Senior Loan Interests | — | 4,810,740 | — | 4,810,740 | ||||||||||||
U.S. Government and Agency Obligations | — | 4,654,706 | — | 4,654,706 | ||||||||||||
$25 Par (or similar) Retail Preferred | 1,638,000 | 2,101,200 | *** | — | 3,739,200 | |||||||||||
Municipal Bonds | — | 1,744,282 | — | 1,744,282 | ||||||||||||
Common Stocks | 120,333 | — | 1 | *** | 120,334 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 7,773,663 | — | — | 7,773,663 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 4,612,653 | — | — | 4,612,653 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Forward Foreign Currency Contracts** | — | (141,625 | ) | — | (141,625 | ) | ||||||||||
Futures Contracts** | 1,495,205 | — | — | 1,495,205 | ||||||||||||
Interest Rate Swaps** | — | (1,689,625 | ) | — | (1,689,625 | ) | ||||||||||
Total | $ | 15,639,854 | $ | 567,238,205 | $ | 1 | $ | 582,878,060 |
* | 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, where applicable. |
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.
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Notes to Financial Statements(Unaudited) (continued)
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Funds retain the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. 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, 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 Plus Bond | ||||||||||||||
Corporate Bonds | $ | 1,347,988 | $ | (1,347,988 | ) | $ | — | |||||||
High Income Bond | ||||||||||||||
Corporate Bonds | $ | 20,530,724 | $ | (20,530,724 | ) | $ | — | |||||||
Contingent Capital Securities | 1,005,000 | (1,005,000 | ) | — | ||||||||||
Total | $ | 21,535,724 | $ | (21,535,724 | ) | $ | — | |||||||
Inflation Procted Securities | ||||||||||||||
Corporate Bonds | $ | 378,250 | $ | (378,250 | ) | $ | — | |||||||
Short Term Bond | ||||||||||||||
Corporate Bonds | $ | 89,505 | $ | (89,505 | ) | $ | — | |||||||
Strategic Income | ||||||||||||||
Corporate Bonds | $ | 4,767,144 | $ | (4,767,144 | ) | $ | — | |||||||
$1,000 Par (or Similar) Institutional Preferred | 836,005 | (836,005 | ) | — | ||||||||||
Contingent Capital Securities | 1,829,159 | (1,829,159 | ) | — | ||||||||||
Total | $ | 7,432,308 | $ | (7,432,308 | ) | $ | — |
* | 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. |
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.
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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* | $ | 11,554,952 | $ | 1,098,335 | $ | 73,124,583 |
* | 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 forward foreign currency contracts | $ | (43,258 | ) | ||||||
Strategic Income | ||||||||||||||
Foreign currency exchange rate | Forward contracts | Unrealized appreciation on forward foreign currency contracts | $ | 1,926 | Unrealized depreciation on forward foreign currency contracts | $ | (143,551 | ) |
125
Notes to Financial Statements(Unaudited) (continued)
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. | $ | — | $ | (43,258 | ) | $ | (43,258 | ) | $ | — | $ | (43,258 | ) | |||||||||
Strategic Income | ||||||||||||||||||||||
Bank of America, N.A. | $ | 1,926 | $ | (143,551 | ) | $ | (141,625 | ) | $ | — | $ | (141,625 | ) |
* | 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 | $ | 284,673 | $ | (50,234 | ) | |||||
High Income Bond | Foreign currency exchange rate | Forward contracts | (5,032 | ) | 4,044 | |||||||
Strategic Income | Foreign currency exchange rate | Forward contracts | 939,752 | (415,200 | ) |
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 futures contracts” on the Statement of Assets and Liabilities. Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days “mark-to-market” of the open contracts. If a Fund has unrealized appreciation the clearing broker would credit the Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
During the current fiscal period, each Fund used U.S. Treasury futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure. 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* | $ | 36,248,830 | $ | 86,906,645 | $ | 1,279,085 | $ | 106,327,966 | $ | 41,699,347 | $ | 228,777,583 |
* | 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. |
126
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* | $ | 288,571 | Payable for variation margin on futures contracts* | $ | (288,797 | ) | ||||||
Core Plus Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 1,229,695 | Payable for variation margin on futures contract* | $ | (1,294,367 | ) | ||||||
Inflation Protected Securities | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 392,283 | Payable for variation margin on futures contracts* | $ | (318,180 | ) | ||||||
Short Term Bond | ||||||||||||||
Interest rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 497,664 | — | $ | — | |||||||
Strategic Income | ||||||||||||||
Interest Rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 3,658,025 | Payable for variation margin on futures contracts* | $ | (2,162,820 | ) |
* | Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivatives location as described in the table above. |
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 | $ | (42,149 | ) | $ | (75,773 | ) | ||||
Core Plus Bond | Interest rate | Futures contracts | (270,678 | ) | (251,546 | ) | ||||||
High Income Bond | Interest rate | Futures contracts | (23,672 | ) | (9,710 | ) | ||||||
Inflation Protected Securities | Interest rate | Futures contracts | 265,846 | (46,033 | ) | |||||||
Short Term Bond | Interest rate | Futures contracts | (49,857 | ) | 499,365 | |||||||
Strategic Income | Interest rate | Futures contracts | (1,442,465 | ) | 443,932 |
Interest Rate Swap Contracts
Interest rate swap contracts involve a Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which begin at a specified date in the future (the “effective date”).
The amount of the payment obligation for an interest rate swap is based on the notional amount and the termination date of the contract. Interest rate swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that the Fund is to receive.
Interest rate swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), the Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. For anover-the-counter (“OTC”) swap that is not cleared through a clearing house (“OTC Uncleared”), the amount recorded on these transactions is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on interest rate swaps.”
Upon the execution of an OTC swap cleared through a clearing house (“OTC Cleared”), 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 deposited by the Fund to cover initial margin requirements on open swap contracts, if any, is recognized as a component of “Cash collateral at brokers for investments in
127
Notes to Financial Statements(Unaudited) (continued)
swaps” on the Statement of Assets and Liabilities. Investments in OTC Cleared swaps obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s“mark-to-market” of the swap contract. If the Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin 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 interest rate swaps” as described in the preceding paragraph.
The net amount of periodic payments settled in cash are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of
Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contracts are treated as ordinary income or expense, respectively. Changes in the value of the swap contracts during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” on the Statement of Operations. In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as “Interest rate swaps premiums paid and/or received” on the Statement of Assets and Liabilities.
During the current fiscal period, Strategic Income used interest rate swap contracts as part of an overall portfolio construction strategy to manage portfolio duration.
The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:
Strategic Income | ||||
Average notional amount of interest rate swap contracts outstanding* | $ | 60,000,000 |
* | 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. |
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 would credit the Fund’s account with an amount equal to the appreciation and 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
128
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, High Income used to hedge a portion of the Fund’s high yield credit exposure. Strategic Income used credit default swaps as a way to take on broad high yield exposure amid some repositioning in the portfolio.
The average notional amount of credit default swap contacts outstanding during the current fiscal period was as follows:
High Income Bond | Strategic Income | |||||||
Average notional amount of credit default swap contracts outstanding* | $ | — | $ | — |
* | 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 Funds did not have any credit default swaps at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all 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 | |||||||||
Strategic Income | ||||||||||||||
Interest Rate | Swaps (OTC Cleared) | — | $ | — | Payable for variation margin on swap contracts* | $ | (1,689,625 | ) |
* | 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 | ||||||||
High Income Bond | Credit | Swaps | $ | (652,436 | ) | $ | — | |||||
Strategic Income | Credit | Swaps | (122,284 | ) | — | |||||||
Interest Rate | Swaps | (193,306 | ) | (1,140,595 | ) | |||||||
Total | $ | (315,590 | ) | $ | (1,140,595 | ) |
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 apre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least thepre-determined threshold amount.
129
Notes to Financial Statements(Unaudited) (continued)
4. Fund Shares
High Income Bond and Strategic Income had issued Class T Shares, however, these shares were not available for public offering and on December 12, 2018, Class T Shares were liquidated.
Transactions in Fund shares during the current and prior fiscal period were as follows:
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
Core Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 222,135 | $ | 2,091,471 | 259,345 | $ | 2,518,647 | ||||||||||
Class C | 40,697 | 381,539 | 92,882 | 896,333 | ||||||||||||
Class R6 | 57,949 | 538,922 | 1,251,363 | 11,846,000 | ||||||||||||
Class I | 606,726 | 5,667,106 | 921,394 | 8,848,524 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 16,798 | 157,939 | 29,818 | 287,696 | ||||||||||||
Class C | 1,121 | 10,504 | 2,395 | 23,040 | ||||||||||||
Class R6 | 95,706 | 898,426 | 162,775 | 1,566,207 | ||||||||||||
Class I | 20,884 | 195,569 | 43,111 | 414,554 | ||||||||||||
1,062,016 | 9,941,476 | 2,763,083 | 26,401,001 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (143,713 | ) | (1,352,964 | ) | (309,837 | ) | (2,984,976 | ) | ||||||||
Class C | (33,455 | ) | (315,490 | ) | (90,717 | ) | (871,749 | ) | ||||||||
Class R6 | (882,007 | ) | (8,280,000 | ) | (590,417 | ) | (5,610,000 | ) | ||||||||
Class I | (933,760 | ) | (8,745,497 | ) | (2,215,128 | ) | (21,320,570 | ) | ||||||||
(1,992,935 | ) | (18,693,951 | ) | (3,206,099 | ) | (30,787,295 | ) | |||||||||
Net increase (decrease) | (930,919 | ) | $ | (8,752,475 | ) | (443,016 | ) | $ | (4,386,294 | ) | ||||||
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
Core Plus Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 291,753 | $ | 3,080,447 | 653,617 | $ | 7,139,307 | ||||||||||
Class A – automatic conversion of Class C Shares | 3,043 | 32,313 | — | — | ||||||||||||
Class C | 26,239 | 275,829 | 121,329 | 1,320,640 | ||||||||||||
Class R3 | 10,398 | 110,304 | 35,518 | 389,435 | ||||||||||||
Class R6 | 4,968,597 | 52,152,852 | 184,131 | 2,015,451 | ||||||||||||
Class I | 1,643,677 | 17,250,826 | 5,892,420 | 64,299,334 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 66,184 | 698,782 | 146,671 | 1,599,806 | ||||||||||||
Class C | 4,231 | 44,495 | 12,592 | 136,838 | ||||||||||||
Class R3 | 1,491 | 15,830 | 3,246 | 35,566 | ||||||||||||
Class R6 | 37,005 | 390,409 | 68,518 | 747,034 | ||||||||||||
Class I | 164,547 | 1,735,672 | 394,669 | 4,296,055 | ||||||||||||
7,217,165 | 75,787,759 | 7,512,711 | 81,979,466 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (460,324 | ) | (4,864,365 | ) | (1,077,905 | ) | (11,759,625 | ) | ||||||||
Class C | (118,759 | ) | (1,252,735 | ) | (250,350 | ) | (2,716,787 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (3,054 | ) | (32,313 | ) | — | — | ||||||||||
Class R3 | (16,951 | ) | (179,740 | ) | (28,732 | ) | (314,331 | ) | ||||||||
Class R6 | (349,713 | ) | (3,699,115 | ) | (207,082 | ) | (2,236,563 | ) | ||||||||
Class I | (6,822,871 | ) | (71,698,692 | ) | (6,627,192 | ) | (71,820,563 | ) | ||||||||
(7,771,672 | ) | (81,726,960 | ) | (8,191,261 | ) | (88,847,869 | ) | |||||||||
Net increase (decrease) | (554,507 | ) | $ | (5,939,201 | ) | (678,550 | ) | $ | (6,868,403) |
130
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
High Income Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 5,406,669 | $ | 40,072,766 | 17,652,996 | $ | 136,868,692 | ||||||||||
Class A – automatic conversion of Class C Shares | 60 | 439 | — | — | ||||||||||||
Class C | 522,356 | 3,857,893 | 1,187,622 | 9,211,820 | ||||||||||||
Class R3 | 3,317 | 24,940 | 10,132 | 80,205 | ||||||||||||
Class I | 6,590,928 | 49,033,510 | 22,389,571 | 174,488,964 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 536,703 | 3,946,507 | 1,074,495 | 8,295,860 | ||||||||||||
Class C | 145,019 | 1,062,721 | 341,483 | 2,633,531 | ||||||||||||
Class R3 | 1,843 | 13,812 | 4,177 | 32,969 | ||||||||||||
Class I | 476,381 | 3,510,080 | 1,181,098 | 9,162,487 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
13,683,276 | 101,522,668 | 43,841,574 | 340,774,528 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (8,503,486 | ) | (62,600,878 | ) | (19,461,487 | ) | (150,787,002 | ) | ||||||||
Class C | (1,193,143 | ) | (8,824,720 | ) | (2,170,940 | ) | (16,699,860 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (60 | ) | (439 | ) | — | — | ||||||||||
Class R3 | (8,075 | ) | (61,552 | ) | (47,517 | ) | (377,065 | ) | ||||||||
Class I | (12,016,393 | ) | (88,145,580 | ) | (30,624,226 | ) | (237,138,482 | ) | ||||||||
Class T | (3,161 | ) | (22,598 | ) | — | — | ||||||||||
(21,724,318 | ) | (159,655,767 | ) | (52,304,170 | ) | (405,002,409 | ) | |||||||||
Net increase (decrease) | (8,041,042 | ) | $ | (58,133,099 | ) | (8,462,596 | ) | $ | (64,227,881 | ) | ||||||
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
Inflation Protected Securities | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 1,470,199 | $ | 15,740,363 | 3,233,346 | $ | 35,523,517 | ||||||||||
Class C | 46,978 | 498,293 | 297,232 | 3,212,789 | ||||||||||||
Class R3 | 93,226 | 988,704 | 258,480 | 2,805,217 | ||||||||||||
Class R6 | 721,809 | 7,893,689 | 3,953,501 | 44,478,129 | ||||||||||||
Class I | 8,287,103 | 89,772,366 | 11,698,956 | 129,896,949 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 41,378 | 443,571 | 109,290 | 1,198,844 | ||||||||||||
Class C | 3,378 | 35,640 | 15,109 | 162,888 | ||||||||||||
Class R3 | 1,505 | 15,979 | 4,822 | 52,499 | ||||||||||||
Class R6 | 61,844 | 675,856 | 129,890 | 1,448,758 | ||||||||||||
Class I | 130,437 | 1,413,518 | 341,197 | 3,788,245 | ||||||||||||
10,857,857 | 117,477,979 | 20,041,823 | 222,567,835 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,955,566 | ) | (31,684,154 | ) | (3,840,052 | ) | (42,159,326 | ) | ||||||||
Class C | (427,062 | ) | (4,555,741 | ) | (423,472 | ) | (4,581,504 | ) | ||||||||
Class R3 | (142,052 | ) | (1,512,945 | ) | (250,151 | ) | (2,721,323 | ) | ||||||||
Class R6 | (593,712 | ) | (6,487,856 | ) | (598,621 | ) | (6,673,921 | ) | ||||||||
Class I | (8,913,430 | ) | (96,366,250 | ) | (13,054,886 | ) | (144,902,526 | ) | ||||||||
(13,031,822 | ) | (140,606,946 | ) | (18,167,182 | ) | (201,038,600 | ) | |||||||||
Net increase (decrease) | (2,173,965 | ) | $ | (23,128,967 | ) | 1,874,641 | $ | 21,529,235 |
131
Notes to Financial Statements(Unaudited) (continued)
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
Short Term Bond | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 3,686,065 | $ | 35,870,791 | 4,324,695 | $ | 42,456,234 | ||||||||||
Class A – automatic conversion of Class C Shares | 26,174 | 254,670 | — | — | ||||||||||||
Class C | 534,815 | 5,233,170 | 336,335 | 3,320,950 | ||||||||||||
Class R3 | 2,643 | 25,807 | 4,869 | 47,861 | ||||||||||||
Class R6 | 779,064 | 7,605,392 | 281,692 | 2,760,199 | ||||||||||||
Class I | 5,429,200 | 52,904,361 | 11,527,164 | 113,147,895 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 77,002 | 749,766 | 130,903 | 1,282,714 | ||||||||||||
Class C | 6,415 | 62,782 | 13,707 | 134,968 | ||||||||||||
Class R3 | 24 | 233 | 33 | 326 | ||||||||||||
Class R6 | 48,318 | 471,900 | 128,556 | 1,263,607 | ||||||||||||
Class I | 108,077 | 1,053,433 | 208,038 | 2,040,672 | ||||||||||||
10,697,797 | 104,232,305 | 16,955,992 | 166,455,426 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (2,812,059 | ) | (27,382,362 | ) | (5,841,694 | ) | (57,321,805 | ) | ||||||||
Class C | (565,959 | ) | (5,537,785 | ) | (1,194,316 | ) | (11,763,288 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (26,040 | ) | (254,670 | ) | — | — | ||||||||||
Class R3 | (2,299 | ) | (22,444 | ) | (28,101 | ) | (274,800 | ) | ||||||||
Class R6 | (2,561,328 | ) | (24,997,700 | ) | (2,182,449 | ) | (21,345,719 | ) | ||||||||
Class I | (6,522,105 | ) | (63,556,406 | ) | (17,075,957 | ) | (167,561,203 | ) | ||||||||
(12,489,790 | ) | (121,751,367 | ) | (26,322,517 | ) | (258,266,815 | ) | |||||||||
Net increase (decrease) | (1,791,993 | ) | $ | (17,519,062 | ) | (9,366,525 | ) | $ | (91,811,389) | |||||||
Six Months 12/31/18 | Year Ended 6/30/18 | |||||||||||||||
Strategic Income | Shares | Amount | Shares | Amount | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 890,179 | $ | 9,027,659 | 2,683,588 | $ | 28,377,306 | ||||||||||
Class A – automatic conversion of Class C Shares | 9,521 | 97,015 | — | — | ||||||||||||
Class C | 129,981 | 1,306,434 | 803,487 | 8,466,196 | ||||||||||||
Class R3 | 45,303 | 462,127 | 206,541 | 2,172,121 | ||||||||||||
Class R6 | 420,198 | 4,274,474 | 4,457,391 | 47,737,747 | ||||||||||||
Class I | 3,043,345 | 30,853,590 | 14,005,431 | 147,411,778 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 147,252 | 1,488,392 | 416,049 | 4,374,046 | ||||||||||||
Class C | 64,059 | 643,750 | 184,713 | 1,932,280 | ||||||||||||
Class R3 | 4,406 | 44,671 | 12,106 | 127,754 | ||||||||||||
Class R6 | 77,584 | 785,624 | 132,372 | 1,386,723 | ||||||||||||
Class I | 427,274 | 4,316,412 | 1,063,993 | 11,169,751 | ||||||||||||
Class T | — | — | — | — | ||||||||||||
5,259,102 | 53,300,148 | 23,965,671 | 253,155,702 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,378,037 | ) | (34,104,658 | ) | (5,467,652 | ) | (57,434,163 | ) | ||||||||
Class C | (1,194,979 | ) | (12,039,529 | ) | (2,319,234 | ) | (24,188,687 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (9,568 | ) | (97,015 | ) | — | — | ||||||||||
Class R3 | (262,925 | ) | (2,683,031 | ) | (328,430 | ) | (3,453,562 | ) | ||||||||
Class R6 | (743,406 | ) | (7,590,342 | ) | (865,131 | ) | (9,161,916 | ) | ||||||||
Class I | (11,486,972 | ) | (115,907,933 | ) | (17,331,712 | ) | (181,031,933 | ) | ||||||||
Class T | (2,343 | ) | (23,290 | ) | — | — | ||||||||||
(17,078,230 | ) | (172,445,798 | ) | (26,312,159 | ) | (275,270,261 | ) | |||||||||
Net increase (decrease) | (11,819,128 | ) | $ | (119,145,650 | ) | (2,346,488 | ) | $ | (22,114,559 | ) |
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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 | $ | 5,745,617 | $ | 17,523,842 | $ | 112,106,275 | $ | 18,825,536 | $ | 103,394,699 | $ | 43,972,353 | ||||||||||||
U.S. Government and agency obligations | 7,560,689 | 6,791,156 | 1,000,000 | 22,731,650 | 35,344,378 | 3,178,750 | ||||||||||||||||||
Sales and maturities: | ||||||||||||||||||||||||
Investment securities | 11,010,131 | 29,158,744 | 173,412,409 | 6,522,555 | 75,935,887 | 150,853,859 | ||||||||||||||||||
U.S. Government and agency obligations | 6,024,163 | 4,082,907 | 2,270,000 | 55,619,322 | 8,904,883 | 13,410,977 |
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.
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, 2018.
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 | $ | 125,811,129 | $ | 352,908,660 | $ | 269,296,987 | $ | 597,295,569 | $ | 452,520,124 | $ | 605,040,822 | ||||||||||||
Gross unrealized: | ||||||||||||||||||||||||
Appreciation | $ | 964,713 | $ | 3,841,316 | $ | 319,523 | $ | 2,295,549 | $ | 586,948 | $ | 4,099,683 | ||||||||||||
Depreciation | (2,188,478 | ) | (10,010,940 | ) | (24,503,001 | ) | (19,482,488 | ) | (3,621,879 | ) | (25,926,400 | ) | ||||||||||||
Net unrealized appreciation (depreciation) of investments | $ | (1,223,765) | $ | (6,169,624) | $ | (24,183,478) | $ | (17,186,939) | $ | (3,034,931) | $ | (21,826,717) |
Core Plus Bond | Strategic Income | |||||||
Tax cost of forward contracts | $ | (43,258 | ) | $ | (141,625 | ) | ||
Net unrealized appreciation (depreciation) of forward contracts | — | — |
Core Bond | Core Plus Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | ||||||||||||||||
Tax cost of futures contracts | $ | (226 | ) | $ | (64,672 | ) | $ | 74,103 | $ | 497,664 | $ | 1,495,205 | ||||||||
Net unrealized appreciation (depreciation) of futures contracts | — | — | — | — | — |
Strategic Income | ||||
Tax cost of swaps | $ | — | ||
Net unrealized appreciation (depreciation) of swaps | (1,689,625 | ) |
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Notes to Financial Statements(Unaudited) (continued)
Permanent differences, primarily due to expiration of capital loss carryforwards, foreign currency transactions, Sec. 305(c) adjustments, complex security character adjustments, investments in partnerships, treatment of notional principal contracts and amortization ofmark-to-market adjustments on Sec. 311(e) assets, resulted in reclassifications among the Funds’ components of net assets as of June 30, 2018, 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 | $ | — | $ | — | $ | 9 | $ | — | $ | (4,103,631 | ) | $ | (35,110,018 | ) | ||||||||||
Undistributed (Over-distribution of) net investment income | — | (313,379 | ) | (194,037 | ) | — | — | (3,537,903 | ) | |||||||||||||||
Accumulated net realized gain (loss) | — | 313,379 | 194,028 | — | 4,103,631 | 38,647,921 |
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2018, 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 | $ | 204,197 | $ | — | $ | 2,368,041 | $ | 4,942,480 | $ | 581,224 | $ | — | ||||||||||||
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, 2018 through June 29, 2018 and paid on July 2, 2018. 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, 2018, 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 | $ | 3,529,829 | $ | 9,611,001 | $ | 24,114,668 | $ | 15,363,092 | $ | 9,310,746 | $ | 17,866,927 | ||||||||||||
Distributions from net long-term capital gains | — | — | — | — | — | — | ||||||||||||||||||
Return of capital | — | 2,151,490 | — | — | — | 14,569,390 |
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, 2018, the Funds’ last tax year end, the Funds 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.
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
Not subject to expiration: | ||||||||||||||||||||||||
Short-term | $ | 593,246 | $ | 3,833,985 | $ | 37,745,091 | $ | 3,026,514 | $ | 4,590,051 | $ | 23,964,735 | ||||||||||||
Long-term | 1,871,671 | 910,732 | 67,932,575 | 157,834 | 5,335,996 | 27,514,278 | ||||||||||||||||||
Total | $ | 2,464,917 | $ | 4,744,717 | $ | 105,677,666 | $ | 3,184,348 | $ | 9,926,047 | $ | 51,479,013 |
During the Funds’ last tax year ended June 30, 2018, the following Funds utilized capital loss carryforwards as follows:
Core | Core Plus Bond | Inflation Protected Securities | Strategic Income | |||||||||||||
Utilized capital loss carryforwards | $ | 453,035 | $ | 2,033,287 | $ | 626,831 | $ | 3,243,237 |
As of June 30, 2018, the Funds’ last tax year end, the following Funds’ capital loss carryforwards expired as follows:
Short Term Bond | Strategic Income | |||||||
Expired capital loss carryforwards | $ | 4,103,631 | $ | 35,110,018 |
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.
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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 includeclosed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes theclosed-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, 2018, 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 | 0.1723 | |||
Short Term Bond | 0.2000 | |||
Strategic Income | 0.2000 |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of each Fund so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees 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, 2020 | |||
Core Plus Bond | 0.52 | July 31, 2020 | ||||
High Income Bond | 0.75 | July 31, 2020 | ||||
Inflation Protected Securities | 0.56 | July 31, 2020 | ||||
Short Term Bond | 0.47 | July 31, 2020 | ||||
Strategic Income | 0.59 | July 31, 2020 |
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Notes to Financial Statements(Unaudited) (continued)
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 | $ | 2,236 | $ | 9,976 | $ | 198,758 | $ | 13,413 | $ | 34,949 | $ | 30,924 | ||||||||||||
Paid to financial intermediaries | 1,796 | 8,724 | 177,386 | 12,365 | 32,547 | 27,389 |
The Distributor also received12b-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 | $ | 834 | $ | 1,668 | $ | 49,452 | $ | 12,457 | $ | 43,585 | $ | 11,940 |
To compensate for commissions advanced to financial intermediaries, all12b-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 such12b-1 fees as follows:
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
12b-1 fees retained | $ | — | $ | 2,803 | $ | 34,035 | $ | 8,619 | $ | — | $ | — |
The remaining12b-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 | $ | 334 | $ | 708 | $ | 6,799 | $ | 452 | $ | 6,601 | $ | 6,965 |
8. Borrowing Arrangements
Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $2.65 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. Each Participating Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a multi-factor assessment of the likelihood and frequency of its need to draw on the facility, the size of the Fund and its anticipated draws, and the potential importance of such draws to the operations and well-being of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its designated capacity if and to the extent that other Participating Funds have undrawn capacity. The credit facility expires in July 2019 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 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized this facility.
9. New Accounting Pronouncements
Disclosure Update and Simplification
During August 2018, the Securities and Exchange Commission (the “SEC”) issued Final Rule ReleaseNo. 33-10532,Disclosure Update and Simplification (“Final Rule ReleaseNo. 33-10532”). Final Rule ReleaseNo. 33-10532 amends certain financial statement disclosure requirements to conform to U.S. GAAP. The amendments to Rule6-04.17 of RegulationS-X (balance sheet) remove the requirement to separately state the book basis components of net assets: undistributed (over-distribution of) net investment income (“UNII”), accumulated undistributed net realized gains (losses),
and net unrealized appreciation (depreciation) at the balance sheet date. Instead, consistent with U.S. GAAP, funds will be required to disclose total
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distributable earnings. The amendments to Rule6-09 of RegulationS-X (statement of changes in net assets) remove the requirement to separately state the sources of distributions paid. Instead, consistent with U.S. GAAP, funds will be required to disclose the total amount of distributions paid, except that any tax return of capital must be separately disclosed. The amendments also remove the requirement to parenthetically state the book basis amount of UNII on the statement of changes in net assets.
The requirements of Final Rule ReleaseNo. 33-10532 were effective November 5, 2018, and the Funds’ Statement of Assets and Liabilities and Statement of Changes in Net Assets for the current reporting period have been modified accordingly. In addition, certain amounts within each Fund’s Statement of Changes in Net Assets for the prior fiscal period have been modified to conform to Final Rule ReleaseNo. 33-10532. For the prior fiscal period, the total amount of distributions paid to shareholders from net investment income and from accumulated net realized gains, if any, are recognized as “Dividends” on the Statement of Changes in Net Assets.
As of June 31, 2018, the Funds’ Statement of Changes in Net Assets reflected the following UNII balances.
Core Bond | Core Plus Bond | High Income Bond | Inflation Protected Securities | Short Term Bond | Strategic Income | |||||||||||||||||||
UNII at the end of period | $ | (112,911 | ) | $ | (854,673 | ) | $ | 445,111 | $ | 2,270,435 | $ | (224,987 | ) | $ | (2,198,975 | ) |
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.
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued ASU 2018-13 (“ASU2018-13”),Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements.ASU2018-13 modifies the disclosures required by Topic 820,Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. During the current reporting period, management early implemented this guidance. This implementation did not have a material impact on the Funds’ financial statements.
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Fund Information
Fund Manager Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606
Sub-Adviser Nuveen Asset Management, LLC 333 West Wacker Drive Chicago, IL 60606 | Independent Registered PricewaterhouseCoopers LLP One North Wacker Drive Chicago, IL 60606
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 219140 Kansas City, MO 64121-9140 (800) 257-8787 |
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Quarterly Form N-Q Portfolio of Investments Information: Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation. | ||||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll-free at(800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. | ||||||||||||||||
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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
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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 of25-30 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,
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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.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Lipper 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 andnon-agency RMBS, depending on the issuer.
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Glossary of Terms Used in this Report(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).
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
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Notes
142
Notes
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Nuveen:
Serving Investors for Generations
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.
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.
Find out how we can help you.
To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial advisor, or call us at(800) 257-8787. Please read the information
provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
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Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com | MSA-FINC-1218D 741807-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 Rule30a-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 Rule30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules13a-15(b) or15d-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 Rule30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. 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.
(a)(4) Change in the registrant’s independent public accountant. Not applicable.
(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/ Christopher M. Rohrbacher | ||||
Christopher M. Rohrbacher Vice President and Secretary |
Date: March 8, 2019
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, 2019
By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: March 8, 2019