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, 2019
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 2019
Nuveen Income Funds
| Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||
| Nuveen High Income Bond Fund | FJSIX | FCSIX | FANSX | — | FJSYX | |||||
| 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.
Semiannual Report
Life is Complex.
Nuveen makes things e-simple.
It only takes a minute to sign up fore-Reports. Once enrolled, you’ll receive ane-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within thee-mail to see the report and save it on your computer if you wish.
Free e-Reports right to your email!
www.investordelivery.com
If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account.
or
www.nuveen.com/client-access
If you receive your Nuveen Fund distributions and statements directly from Nuveen.
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
of Contents
| 4 | ||||
| 5 | ||||
| 9 | ||||
| 10 | ||||
| 13 | ||||
| 14 | ||||
| 16 | ||||
| 18 | ||||
| 40 | ||||
| 42 | ||||
| 43 | ||||
| 44 | ||||
| 48 | ||||
| 60 | ||||
| 61 | ||||
3
Chair’s Letter to Shareholders
Dear Shareholders,
Financial markets finished 2019 on a high note, despite the challenges of a weak start to the year, a slower global economy and heightened geopolitical risks. While global manufacturing languished, consumers remained resilient amid tight labor markets, growing wages and tame inflation. Global business sentiment, however, was less optimistic due to trade frictions and weaker global demand. Across advanced economies growth in corporate profits and earnings was subdued in 2019. Nevertheless, the Federal Reserve’s (Fed) pivot to easing monetary conditions, along with liquidity provided by other central banks around the world, provided confidence that the economic cycle could be extended. Additionally, the year ended with a reduction in trade tensions and Brexit uncertainty, although the next phase of U.S.-China trade negotiations are expected to be more challenging and the U.K. has a relatively short transition window in which to redefine its relationship with the European Union.
We continue to anticipate muted economic growth and increased market volatility this year. The U.S. economy held steady in the second half of 2019, although growth for the year overall moderated from 2018’s pace. Consumer confidence remains underpinned by low unemployment and modest wage growth. Looser financial conditions, in part driven by the Fed’s three interest rate cuts in 2019, have revived momentum in the housing market and should continue to encourage borrowing by consumers and businesses. Although consumer spending in Europe and Japan, like in the U.S., has remained supported by jobs growth and rising wages, economic growth there appears more fragile. The COVID-19 coronavirus outbreak poses a new downside risk to the global economy, as disruptions to both demand and production ripple through global supply chains. We are closely monitoring the situation.
At Nuveen, we still see investment opportunities in the maturing economic environment, but we are taking a selective approach. If you’re concerned about where the markets are headed from here, we encourage you to work with your financial advisor to review your time horizon, risk tolerance and investment goals. 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
Chair of the Board
February 21, 2020
4
Comments
Nuveen High Income Bond Fund
Nuveen Strategic Income Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds’ investment adviser. Kevin Lorenz, CFA and Jean C. Lin, CFA, are portfolio managers for the Nuveen High Income Bond Fund. Portfolio managers for the Nuveen Strategic Income Fund include Douglas M. Baker, CFA, Bill Martin, Kevin Lorenz, CFA, Katherine Renfrew and Nicholas Travaglino.
Effective July 31, 2019, Timothy A. Palmer, CFA, is no longer a portfolio manager for the Fund.
In this report, the portfolio management team for the Funds discuss key investment strategies and the Funds’ performance for thesix-month reporting period ended December 31, 2019.
What strategies were used to manage the Funds during thesix-month reporting period and how did these strategies influence performance?
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 High Income Bond Fund
The Fund’s Class A Shares at NAV outperformed both the Bloomberg Barclays High Yield 2% Issuer Capped Index and the Lipper Global High Yield Funds Classification Average for thesix-month reporting period.
The U.S. economy continued to grow at a modest pace during the reporting period, reflecting continued trade friction and global growth concerns. Consumer spending supported growth, while business spending remained disappointing and manufacturing contracted starting in September. Weak global growth prompted central banks around the world to make a synchronized pivot to monetary stimulus. The Federal Reserve (Fed) cut rates three times during the reporting period in response to the global economic downshift along with trade-related uncertainties in a benign inflation
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy 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)
environment. Although businesses remained cautious, global growth stabilized as trade tensions eased, Brexit risk declined and China’s manufacturing sector improved. Financial markets responded positively with credit spreads tightening, equity markets rallying and volatility declining. At the December 2019 meeting, Fed policymakers held rates steady while also signaling that they expect to leave rates unchanged in 2020.
During the reporting period, Treasury yields fell, but more so at the front end of the yield curve driven by three Federal Reserve (Fed) rate cuts. Three-monthT-bills ended the reporting period 57 basis points lower at 1.55%, while the yield on the10-year Treasury fell by only 8 basis points to end at 1.92%. As a result, the Treasury yield curvere-steepened following the year’s earlier inversion, which happens when short-term interest rates are higher than longer-term rates. The three-month to10-year Treasury spread turned positive for the first time since May 2019. Globally, yields also fell and at one point during the reporting period, more than $14 trillion worth of global bonds were trading with negative yields. Although businesses remained cautious, global growth stabilized as trade tensions eased, Brexit risk declined and China’s manufacturing sector improved. Financial markets responded positively with credit spreads tightening, equity markets rallying and volatility declining.
The high yield market continued to be supported by dovish central banks and stable credit fundamentals, which kept recession at bay. Also, the technical backdrop was strong as capital from around the globe continued to flow into the asset class in the hunt for yield in theultra-low rate environment. Although earnings momentum moderated in the fourth quarter 2019, the supportive macro backdrop and more favorable business sentiment going into 2020 collapsed market volatility, providing a strong tailwind for valuations in the high yield market. Spreads tightened and revisited their post-crisis tight levels by the end of the reporting period, particularly in the higher quality segment of the market and the high yield asset class produced strong returns. The spread of the Bloomberg Barclays U.S. High Yield Index decreased 41 basis points during the reporting period to end at 336 basis points over Treasuries.
The higher quality tiers of high yield outpaced lower quality bonds during the reporting period as they had since the beginning of the year. However, in the final months of the reporting period, we saw a reversal and more volatile, lower quality credits outperformed higher quality issues within the asset class, despite various sorts of headline risk. The demand for riskier assets was generally aided by improved forward-looking sentiment and the energy sector as oil prices rose. CCC rated credit handily outperformed both the BB and B segments during December 2019. The“risk-on” mentality in the final few months of the reporting period encouraged investors to put idle dollars to work. The increased demand for risk also allowed for high yield issuance to hit record levels as 2019 came to a close.
The Fund experienced strong outperformance and had very few performance detractors given the“risk-on” rally and dampened volatility. The most impactful contributors were related to the Fund’s various credit quality exposures. In particular, performance was enhanced by a significant overweight position in the single B rating category. Results also benefited from an underweight position in C to CCC+ rated bonds versus the benchmark, due to the segment’s underperformance. Additionally, security selection aided results among lower rated credits. Finally, although an underweight to the strongest performing, BB rated segment detracted, our strong security selection more than made up for the shortfall.
The Fund’s allocation to preferred and contingent capital (CoCo) securities was also a modest contributor to results. These securities outperformed all other fixed income sectors due to strong underlying credit fundamentals and relatively modest supply in the face of ongoing investor demand for income. Bank stress test results conducted during 2019 reaffirmed the strength of banks, by far the largest sector within these markets, both inside and outside the U.S. CoCos were further supported by the U.K. election results in December 2019, which eliminated a significant amount of uncertainty surrounding Brexit and its possible carryover issues to other European countries. In addition, the steady decline in interest rates continued to stoke investor demand for higher yielding solutions such as preferred and CoCo securities.
6
At the industry level, security selection was strong among three sectors where the Fund held underweights: communications, consumer cyclicals and consumernon-cyclicals. In the communications sector, the Fund benefited from underweights to satellite service operator Intelsat and Frontier Communications, as well as overweights to Cox Media and Vodafone Group. The consumer cyclical area was also additive due to strong security selection in the cyclical services and home construction areas. Finally, in consumernon-cyclical, positive selection in health care (hospitals) and pharmaceuticals contributed favorably to relative performance.
Among other sectors, the largest individual contributor was an overweight position in CommScope, Inc., a telecommunications infrastructure provider that posted above-consensus earnings following an acquisition that closed in April 2019. Also, the Fund’s lack of exposure to benchmark component McDermott Technology benefited results. The oilfield services company had engineering and construction contracts with massive cost overruns that caused the value of its bonds to plummet.
The Fund had no material detractors to relative performance in terms of sector or credit quality weightings. In fact, given the strong rally in high yield markets, the largest drag on the portfolio came from its holdings in cash and equivalents, which increased slightly during the reporting period.
In terms of individual securities, an overweight in business process automation provider Exela detracted in the technology sector. Bonds suffered losses after the market grew concerned about liquidity and business fundamentals following a recent earnings miss and negative outlook revision. The Fund continues to own Exela. In energy, overweight positions in natural gas pipeline owner and operator Antero Midstream and natural gas exploration and production (E&P) firm Chesapeake Energy modestly detracted. Although commodity prices rebounded during the reporting period, Chesapeake Energy delivered poor results, leading to worries about a potential technical default in the event the company fell out of compliance with leverage covenants. The Fund continues to own Antero Midstream but eliminated its holding in Chesapeake Energy.
During the reporting period, the Fund used credit default swaps to hedge the Fund’s high yield credit exposure. These 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) outperformed the Bloomberg Barclays Aggregate Bond Index and the Lipper Multi-Sector Income Funds Classification Average for thesix-month reporting period.
The U.S. economy continued to grow at a modest pace during the reporting period, reflecting continued trade friction and global growth concerns. Consumer spending supported growth, while business spending remained disappointing and manufacturing contracted starting in September. Weak global growth prompted central banks around the world to make a synchronized pivot to monetary stimulus. The Federal Reserve (Fed) cut rates three times during the reporting period in response to the global economic downshift along with trade-related uncertainties in a benign inflation environment. Although businesses remained cautious, global growth stabilized as trade tensions eased, Brexit risk declined and China’s manufacturing sector improved. Financial markets responded positively with credit spreads tightening, equity markets rallying and volatility declining. At the December 2019 meeting, Fed policymakers held rates steady while also signaling that they expect to leave rates unchanged in 2020.
During the reporting period, Treasury yields fell, but more so at the front end of the yield curve driven by the Fed rate cuts. Three-monthT-bills ended the reporting period 57 basis points lower at 1.55%, while the yield on the10-year Treasury fell by only 8 basis points to end at 1.92%. As a result, the Treasury yield curvere-steepened following the year’s earlier inversion, which happens when short-term interest rates are higher than longer-term rates. The three-month to10-year Treasury spread turned positive for the first time since May 2019. Globally, yields also fell and, at one point during the reporting period, more than $14 trillion worth of global bonds were trading with negative yields.
7
Portfolio Managers’ Comments(continued)
The most significant driver of the Fund’s outperformance was its diversified exposure to credit sectors that offered a significant yield advantage over government sectors. In particular, a healthy allocation to preferred and contingent capital (CoCo) securities during the reporting period provided substantial excess returns. These securities outperformed all other fixed income sectors due to strong underlying credit fundamentals and relatively modest supply in the face of ongoing investor demand for income. Bank stress test results conducted during 2019 reaffirmed the strength of banks, by far the largest sector within these markets, both inside and outside the U.S. CoCos were further supported by the U.K. election results in December 2019, which eliminated a significant amount of uncertainty surrounding Brexit and its possible carryover issues to other European countries. In addition, the steady decline in interest rates continued to stoke investor demand for higher yielding solutions such as preferred and CoCo securities.
Allocations to high yield credit and leveraged loans also significantly aided results. High yield bonds were also among the top performing sectors. The sector was supported by dovish central banks and stable credit fundamentals, which kept recession at bay, while capital from around the globe continued to flow into the asset class in the hunt for yield. Although earnings momentum moderated in the fourth quarter 2019, the supportive macro backdrop and more favorable business sentiment going into 2020 collapsed market volatility, providing a strong tailwind for valuations in the high yield market. Spreads tightened throughout the reporting period. Although risk appetite did pick up later in the reporting period, the higher quality areas of the high yield market still significantly outperformed lower quality bonds for the reporting period as a whole. The Fund benefited from both an overweight to high yield and selection within the sector. Anout-of-index allocation to leveraged loans also aided results. Fundamentals remained strong as default activity stayed muted, while the amount of repayments led to a technical tailwind as managers were left with large cash balances to reinvest. Later in the reporting period, the segment benefited from lower new issue volume and less merger and acquisition activity. Because of elevated valuations, we maintained a hedge on high yield exposure, reducing the Fund’s net bond and loan exposure to around 15% by the end of the reporting period.
In addition, the Fund’s performance benefited from a substantial underweight to U.S. Treasury securities. We maintained this underweight in Treasuries given our generally constructive economic view and income focus for the Fund.
The Fund experienced few performance detractors given the period’s“risk-on” rally and dampened volatility based on stabilizing global growth, easing trade tensions and declining Brexit risk. Given this market backdrop, the Fund’s overweight allocations to securitized sectors, including asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS), were somewhat of a drag on performance because these sectors underperformed relative to corporate credit. However, the Fund’s exposure to ABS and CMBS did not detract from absolute returns.
Interest rate positioning was the only detractor of note given the move lower in rates. (Bond prices move in the opposite direction of rates.) We had positioned the Fund with a moderately shorter duration relative to its benchmark during the reporting period, which lessened its interest rate sensitivity. Although we extended the duration modestly as the reporting period progressed, it still remained short versus the benchmark and was not enough to offset the full impact from falling rates.
During the reporting period, we also continued to utilize various derivative instruments. We utilized U.S. Treasury futures and Eurodollar futures as part of an overall portfolio construction strategy to manage portfolio duration and yield curve exposure and selected foreign bond futures to actively manage exposure to those markets. These positions had a positive impact on performance during the reporting period.
In addition, we entered into credit default swaps as a way to lower overall high yield exposure. The effect of these activities on performance was negligible during the reporting period.
8
and Dividend Information
Risk Considerations
Nuveen High Income Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, income risk, and other investment company risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards.
Nuveen Strategic Income Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The Fund gains additional exposure to currency rates, and therefore to the risk of currency fluctuation, through investment in foreign currency contracts. The risks of foreign investments are magnified in emerging markets. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
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.
9
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.
Total returns for a period of less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. 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.
10
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 and Expense Ratios
| Inception Date | Cumulative | Average Annual Total Returns as of December 31, 2019* | Expense Ratios** | |||||||||||||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | Gross | Net | |||||||||||||||||||||||
| Class A Shares at NAV | 8/30/01 | 5.05% | 16.53% | 4.99% | 6.60% | 1.04% | 1.03% | |||||||||||||||||||||
| Class A Shares at maximum Offering Price | — | 0.08% | 10.92% | 3.97% | 6.08% | — | — | |||||||||||||||||||||
| Bloomberg Barclays High Yield 2% Issuer Capped Index | — | 3.98% | 14.32% | 6.14% | 7.55% | — | — | |||||||||||||||||||||
| Lipper Global High Yield Funds Classification Average | — | 3.60% | 13.06% | 4.76% | 6.50% | — | — | |||||||||||||||||||||
| Class C Shares | 8/30/01 | 4.68% | 15.70% | 4.21% | 5.85% | 1.80% | 1.78% | |||||||||||||||||||||
| Class R3 Shares | 9/24/01 | 4.86% | 16.13% | 4.69% | 6.34% | 1.29% | 1.28% | |||||||||||||||||||||
| Class I Shares | 8/30/01 | 5.02% | 16.76% | 5.23% | 6.89% | 0.79% | 0.78% | |||||||||||||||||||||
| * | 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. |
| ** | The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2021 so that total annual Fund operating expenses (excluding12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities (including prime broker fees and charges on short sales), dividend expense on securities sold short and extraordinary expenses) do not exceed 0.75% of the average daily net assets of any class of Fund shares. The expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund. |
11
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 and Expense Ratios
| Cumulative | Average Annual Total Returns as of December 31, 2019* | Expense Ratios** | ||||||||||||||||||||||||||
| Inception Date | 6-Month | 1-Year | 5-Year | 10-Year | Gross | Net | ||||||||||||||||||||||
| Class A Shares at NAV | 2/01/00 | 3.64% | 12.88% | 3.62% | 5.10% | 0.97% | 0.85% | |||||||||||||||||||||
| Class A Shares at maximum Offering Price | — | (0.76)% | 8.08% | 2.72% | 4.65% | — | — | |||||||||||||||||||||
| Bloomberg Barclays U.S. Aggregate Bond Index | — | 2.45% | 8.72% | 3.05% | 3.75% | — | — | |||||||||||||||||||||
| Lipper Multi-Sector Income Funds Classification Average | — | 2.62% | 9.77% | 3.91% | 5.18% | — | — | |||||||||||||||||||||
| Class C Shares | 2/01/00 | 3.26% | 12.09% | 2.86% | 4.31% | 1.72% | 1.60% | |||||||||||||||||||||
| Class R3 Shares | 9/24/01 | 3.52% | 12.69% | 3.37% | 4.83% | 1.21% | 1.10% | |||||||||||||||||||||
| Class I Shares | 2/01/00 | 3.76% | 13.14% | 3.88% | 5.35% | 0.72% | 0.60% | |||||||||||||||||||||
| Cumulative | Average Annual Total Returns as of December 31, 2019* | Expense Ratios** | ||||||||||||||||||||||
| Inception Date | 6-Month | 1-Year | Since Inception | Gross | Net | |||||||||||||||||||
Class R6 Shares | 1/20/15 | 3.90% | 13.39% | 3.95% | 0.63% | 0.51% | ||||||||||||||||||
| * | 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. |
| ** | The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2021 so that total annual Fund operating expenses (excluding12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities (including prime broker fees and charges on short sales), dividend expense on securities sold short 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, total annual operating expenses for the Class R6 shares will be less than the expense limitation. The expense limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund. |
12
Yields as of December 31, 2019
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 be 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 High Income Bond Fund
| Share Class | ||||||||||||||||
| Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 5.04% | 4.59% | 5.03% | 5.52% | ||||||||||||
SEC30-Day Yield-Subsidized | 4.31% | 3.78% | 4.28% | 4.78% | ||||||||||||
SEC30-Day Yield-Unsubsidized | 4.31% | 3.78% | 4.28% | 4.78% | ||||||||||||
Nuveen Strategic Income Fund
| Share Class | ||||||||||||||||||||
| Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 3.50% | 2.91% | 3.43% | 3.99% | 3.89% | |||||||||||||||
SEC30-Day Yield-Subsidized | 2.97% | 2.38% | 2.87% | 3.46% | 3.38% | |||||||||||||||
SEC30-Day Yield-Unsubsidized | 2.82% | 2.27% | 2.81% | 3.33% | 3.25% | |||||||||||||||
| 1 | The SEC Yield for Class A Shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
13
Holding Summaries as of December 31, 2019
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 High Income Bond Fund
Fund Allocation
(% of net assets)
| Corporate Bonds | 77.7% | |||
| Exchange-Traded Funds | 5.1% | |||
| Contingent Capital Securities | 1.5% | |||
| Variable Rate Senior Loan Interests | 1.1% | |||
| $25 Par (or similar) Retail Preferred | 0.8% | |||
| $1,000 Par (or similar) Institutional Preferred | 0.5% | |||
| Sovereign Debt | 0.4% | |||
| Common Stocks | 0.0% | |||
| Investments Purchased with Collateral from Securities Lending | 5.3% | |||
| Money Market Funds | 11.7% | |||
| Other Assets Less Liabilities | (4.1)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
| Oil, Gas & Consumable Fuels | 13.5% | |||
Media | 9.9% | |||
Chemicals | 6.0% | |||
Health Care Providers & Services | 5.2% | |||
Specialty Retail | 5.0% | |||
Energy Equipment & Services | 4.0% | |||
Commercial Services & Supplies | 3.5% | |||
Diversified Telecommunication Services | 3.4% | |||
Consumer Finance | 3.3% | |||
Machinery | 3.2% | |||
Insurance | 3.0% | |||
Auto Components | 3.0% | |||
Metals & Mining | 2.9% | |||
Pharmaceuticals | 2.7% | |||
Communications Equipment | 2.5% | |||
Aerospace & Defense | 2.4% | |||
Household Durables | 2.4% | |||
Capital Markets | 2.1% | |||
Diversified Financial Services | 1.8% | |||
Trading Companies & Distributors | 1.8% | |||
Other | 18.4% | |||
Total | 100% | |||
Portfolio Credit Quality
(% of total long-term fixed-income investments)
| BBB | 3.6% | |||
BB or Lower | 96.0% | |||
N/R (not rated) | 0.4% | |||
Total | 100% | |||
14
Nuveen Strategic Income Fund
Fund Allocation
(% of net assets)
| Corporate Bonds | 37.2% | |||
| Asset-Backed and Mortgage-Backed Securities | 33.7% | |||
| U.S. Government and Agency Obligations | 7.3% | |||
| Variable Rate Senior Loan Interests | 6.5% | |||
| $1,000 Par (or similar) Institutional Preferred | 5.0% | |||
| Contingent Capital Securities | 4.3% | |||
| Sovereign Debt | 2.4% | |||
| Municipal Bonds | 1.4% | |||
$25 Par (or similar) Retail Preferred | 0.6% | |||
| Investments Purchased with Collateral from Securities Lending | 1.3% | |||
| Money Market Funds | 1.1% | |||
| Other Assets Less Liabilities | (0.8)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
| Banks | 18.3% | |||
| Oil, Gas & Consumable Fuels | 12.3% | |||
| Media | 5.3% | |||
| Capital Markets | 5.2% | |||
| Diversified Telecommunication Services | 4.4% | |||
| Consumer Finance | 4.1% | |||
| Insurance | 3.4% | |||
| Chemicals | 3.4% | |||
| Electric Utilities | 3.1% | |||
| Specialty Retail | 2.9% | |||
| Equity Real Estate Investment Trust | 2.9% | |||
| Wireless Telecommunication Services | 2.0% | |||
| Road & Rail | 2.0% | |||
| Health Care Providers & Services | 1.8% | |||
| Airlines | 1.7% | |||
| Energy Equipment & Services | 1.6% | |||
| Communications Equipment | 1.6% | |||
| Air Freight & Logistics | 1.5% | |||
| Automobiles | 1.5% | |||
| Pharmaceuticals | 1.5% | |||
| Other | 19.5% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
| AAA | 23.9% | |||
| AA | 3.1% | |||
| A | 16.4% | |||
| BBB | 22.6% | |||
| BB or Lower | 30.4% | |||
| N/R (not rated) | 3.6% | |||
Total | 100% |
15
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, 2019.
The beginning of the period for the funds is July 1, 2019.
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 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 | $ | 1,050.54 | $ | 1,046.82 | $ | 1,048.63 | $ | 1,050.23 | ||||||||
Expenses Incurred During the Period | $ | 5.16 | $ | 9.01 | $ | 6.44 | $ | 3.87 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,020.10 | $ | 1,016.33 | $ | 1,018.84 | $ | 1,021.36 | ||||||||
Expenses Incurred During the Period | $ | 5.09 | $ | 8.88 | $ | 6.35 | $ | 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% and 0.75% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect theone-half year period).
16
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 | $ | 1,036.45 | $ | 1,032.64 | $ | 1,035.17 | $ | 1,038.99 | $ | 1,037.60 | ||||||||||
Expenses Incurred During the Period | $ | 4.29 | $ | 8.11 | $ | 5.57 | $ | 2.58 | $ | 3.01 | ||||||||||
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 | $ | 1,020.92 | $ | 1,017.15 | $ | 1,019.67 | $ | 1,022.60 | $ | 1,022.18 | ||||||||||
Expenses Incurred During the Period | $ | 4.26 | $ | 8.05 | $ | 5.52 | $ | 2.56 | $ | 2.99 | ||||||||||
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 184/366 (to reflect theone-half year period).
17
Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| LONG-TERM INVESTMENTS – 87.1% | ||||||||||||||||||||||||||||||
| CORPORATE BONDS – 77.7% | ||||||||||||||||||||||||||||||
| Aerospace & Defense – 1.9% | ||||||||||||||||||||||||||||||
| $ | 1,375 | Bombardier Inc., 144A | 7.875% | 4/15/27 | B | $ | 1,414,531 | |||||||||||||||||||||||
| 1,000 | TransDigm Inc. | 7.500% | 3/15/27 | B– | 1,093,800 | |||||||||||||||||||||||||
| 2,725 | TransDigm Inc., 144A | 5.500% | 11/15/27 | B– | 2,755,602 | |||||||||||||||||||||||||
| 5,100 | Total Aerospace & Defense | 5,263,933 | ||||||||||||||||||||||||||||
| Auto Components – 2.3% | ||||||||||||||||||||||||||||||
| 1,000 | Adient Global Holdings Ltd, 144A | 4.875% | 8/15/26 | B | 892,500 | |||||||||||||||||||||||||
| 175 | Dana Inc. | 5.375% | 11/15/27 | BB+ | 180,250 | |||||||||||||||||||||||||
| 1,125 | Icahn Enterprises LP / Icahn Enterprises Finance Corp |
| 6.250% | 5/15/26 | BB+ | 1,198,125 | ||||||||||||||||||||||||
| 1,475 | IHO Verwaltungs GmbH, 144A, (cash 4.750%, PIK 5.500%) |
| 4.750% | 9/15/26 | BB+ | 1,504,500 | ||||||||||||||||||||||||
| 1,000 | IHO Verwaltungs GmbH, 144A, (cash 6.375%, PIK 7.125%) |
| 6.375% | 5/15/29 | BB+ | 1,075,000 | ||||||||||||||||||||||||
| 1,500 | Panther BF Aggregator 2 LP / Panther Finance Co Inc., 144A |
| 8.500% | 5/15/27 | B | 1,593,750 | ||||||||||||||||||||||||
| 6,275 | Total Auto Components | 6,444,125 | ||||||||||||||||||||||||||||
| Automobiles – 0.7% | ||||||||||||||||||||||||||||||
| 1,900 | Ford Motor Credit Co LLC | 4.063% | 11/01/24 | BBB | 1,937,749 | |||||||||||||||||||||||||
| Banks – 0.6% | ||||||||||||||||||||||||||||||
| 1,500 | Quicken Loans Inc., 144A | 5.250% | 1/15/28 | Ba1 | 1,552,500 | |||||||||||||||||||||||||
| Building Products – 0.9% | ||||||||||||||||||||||||||||||
| 2,000 | James Hardie International Finance DAC, 144A | 5.000% | 1/15/28 | BBB– | 2,100,000 | |||||||||||||||||||||||||
| 425 | Masonite International Corp, 144A | 5.375% | 2/01/28 | BB+ | 448,906 | |||||||||||||||||||||||||
| 2,425 | Total Building Products | 2,548,906 | ||||||||||||||||||||||||||||
| Capital Markets – 1.6% | ||||||||||||||||||||||||||||||
| 1,000 | Donnelley Financial Solutions Inc. | 8.250% | 10/15/24 | B | 1,022,500 | |||||||||||||||||||||||||
| 550 | Eagle Holding Co II LLC, 144A, (cash 7.750%, PIK 7.750%) |
| 7.750% | 5/15/22 | CCC+ | 558,459 | ||||||||||||||||||||||||
| 1,000 | Icahn Enterprises LP / Icahn Enterprises Finance Corp, 144A |
| 4.750% | 9/15/24 | BB+ | 1,027,500 | ||||||||||||||||||||||||
| 1,250 | Jefferies Finance LLC / JFIN Co-Issuer Corp, 144A |
| 7.250% | 8/15/24 | BB– | 1,287,500 | ||||||||||||||||||||||||
| 525 | LPL Holdings Inc., 144A | 4.625% | 11/15/27 | BB | 535,500 | |||||||||||||||||||||||||
| 4,325 | Total Capital Markets | 4,431,459 | ||||||||||||||||||||||||||||
| Chemicals – 4.7% | ||||||||||||||||||||||||||||||
| 2,000 | Calumet Specialty Products Partners LP / Calumet Finance Corp, 144A, (3) |
| 11.000% | 4/15/25 | B– | 2,175,000 | ||||||||||||||||||||||||
| 1,500 | CF Industries Inc. | 5.375% | 3/15/44 | BB+ | 1,635,000 | |||||||||||||||||||||||||
| 1,000 | Chemours Co, (3) | 7.000% | 5/15/25 | Ba3 | 1,007,500 | |||||||||||||||||||||||||
| 1,000 | Chemours Co | 5.375% | 5/15/27 | Ba3 | 885,000 | |||||||||||||||||||||||||
| 1,500 | NOVA Chemicals Corp, 144A | 4.875% | 6/01/24 | BB+ | 1,548,750 | |||||||||||||||||||||||||
| 1,250 | OCI NV, 144A | 6.625% | 4/15/23 | BB | 1,303,125 | |||||||||||||||||||||||||
| 525 | OCI NV, 144A | 5.250% | 11/01/24 | BB | 544,687 | |||||||||||||||||||||||||
| 1,000 | Olin Corp | 5.125% | 9/15/27 | BB+ | 1,042,500 | |||||||||||||||||||||||||
| 1,000 | Trinseo Materials Operating SCA / Trinseo Materials Finance Inc. |
| 5.375% | 9/01/25 | B+ | 1,000,000 | ||||||||||||||||||||||||
| 1,500 | Tronox Finance PLC, 144A | 5.750% | 10/01/25 | B | 1,528,080 | |||||||||||||||||||||||||
| 325 | Univar Solutions USA Inc., 144A | 5.125% | 12/01/27 | BB | 339,229 | |||||||||||||||||||||||||
| 12,600 | Total Chemicals | 13,008,871 | ||||||||||||||||||||||||||||
| Commercial Services & Supplies – 2.7% | ||||||||||||||||||||||||||||||
| 1,000 | ADT Security Corp, 144A | 4.875% | 7/15/32 | BB– | 917,500 | |||||||||||||||||||||||||
| 550 | Allied Universal Holdco LLC / Allied Universal Finance Corp, 144A |
| 6.625% | 7/15/26 | BB– | 591,085 | ||||||||||||||||||||||||
| 1,075 | Allied Universal Holdco LLC / Allied Universal Finance Corp, 144A |
| 9.750% | 7/15/27 | CCC+ | 1,148,390 | ||||||||||||||||||||||||
| 225 | GFL Environmental Inc., 144A | 7.000% | 6/01/26 | CCC+ | 237,690 | |||||||||||||||||||||||||
| 175 | GFL Environmental Inc., 144A | 5.125% | 12/15/26 | B+ | 183,992 | |||||||||||||||||||||||||
| 525 | GFL Environmental Inc., 144A | 8.500% | 5/01/27 | CCC+ | 577,500 | |||||||||||||||||||||||||
18
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Commercial Services & Supplies(continued) | ||||||||||||||||||||||||||||||
| $ | 525 | KAR Auction Services Inc., 144A | 5.125% | 6/01/25 | B+ | $ | 546,000 | |||||||||||||||||||||||
| 775 | Prime Security Services Borrower LLC / Prime Finance Inc., 144A |
| 5.250% | 4/15/24 | BB– | 819,950 | ||||||||||||||||||||||||
| 1,750 | Prime Security Services Borrower LLC / Prime Finance Inc., 144A |
| 5.750% | 4/15/26 | BB– | 1,902,040 | ||||||||||||||||||||||||
| 600 | Stericycle Inc., 144A | 5.375% | 7/15/24 | BB+ | 630,000 | |||||||||||||||||||||||||
| 7,200 | Total Commercial Services & Supplies | 7,554,147 | ||||||||||||||||||||||||||||
| Communications Equipment – 2.0% | ||||||||||||||||||||||||||||||
| 500 | CommScope Inc., 144A | 5.500% | 6/15/24 | B– | 506,260 | |||||||||||||||||||||||||
| 2,225 | CommScope Inc., 144A | 8.250% | 3/01/27 | B– | 2,341,812 | |||||||||||||||||||||||||
| 1,500 | CommScope Technologies LLC, 144A | 6.000% | 6/15/25 | B– | 1,501,695 | |||||||||||||||||||||||||
| 750 | CommScope Technologies LLC, 144A, (3) | 5.000% | 3/15/27 | B– | 705,000 | |||||||||||||||||||||||||
| 425 | ViaSat Inc., 144A | 5.625% | 4/15/27 | BB+ | 454,750 | |||||||||||||||||||||||||
| 5,400 | Total Communications Equipment | 5,509,517 | ||||||||||||||||||||||||||||
| Construction & Engineering – 0.3% | ||||||||||||||||||||||||||||||
| 700 | AECOM | 5.125% | 3/15/27 | BB– | 752,500 | |||||||||||||||||||||||||
| Construction Materials – 1.1% | ||||||||||||||||||||||||||||||
| 3,000 | Gates Global LLC / Gates Global Co, 144A | 6.250% | 1/15/26 | B | 3,051,630 | |||||||||||||||||||||||||
| Consumer Finance – 2.5% | ||||||||||||||||||||||||||||||
| 1,000 | Curo Group Holdings Corp, 144A | 8.250% | 9/01/25 | B– | 879,980 | |||||||||||||||||||||||||
| 1,000 | Enova International Inc., 144A | 8.500% | 9/15/25 | B2 | 945,000 | |||||||||||||||||||||||||
| 1,500 | Refinitiv US Holdings Inc., 144A | 6.250% | 5/15/26 | BB+ | 1,636,875 | |||||||||||||||||||||||||
| 1,500 | Refinitiv US Holdings Inc., 144A | 8.250% | 11/15/26 | B+ | 1,689,375 | |||||||||||||||||||||||||
| 1,325 | Springleaf Finance Corp | 6.125% | 3/15/24 | BB– | 1,450,875 | |||||||||||||||||||||||||
| 425 | Springleaf Finance Corp | 5.375% | 11/15/29 | BB– | 443,615 | |||||||||||||||||||||||||
| 6,750 | Total Consumer Finance | 7,045,720 | ||||||||||||||||||||||||||||
| Containers & Packaging – 0.1% | ||||||||||||||||||||||||||||||
| 125 | Berry Global Inc., 144A | 5.625% | 7/15/27 | BB | 134,063 | |||||||||||||||||||||||||
| Diversified Consumer Services – 0.4% | ||||||||||||||||||||||||||||||
| 1,000 | frontdoor Inc., 144A | 6.750% | 8/15/26 | B2 | 1,090,000 | |||||||||||||||||||||||||
| Diversified Financial Services – 1.4% | ||||||||||||||||||||||||||||||
| 1,000 | Icahn Enterprises LP / Icahn Enterprises Finance Corp |
| 6.375% | 12/15/25 | BB+ | 1,048,750 | ||||||||||||||||||||||||
| 450 | Jefferies Finance LLC / JFIN Co-Issuer Corp, 144A |
| 6.250% | 6/03/26 | Ba2 | 471,375 | ||||||||||||||||||||||||
| 1,400 | Lions Gate Capital Holdings LLC, 144A | 6.375% | 2/01/24 | B2 | 1,463,028 | |||||||||||||||||||||||||
| 1,000 | PetSmart Inc., 144A | 7.125% | 3/15/23 | CCC+ | 980,000 | |||||||||||||||||||||||||
| 3,850 | Total Diversified Financial Services | 3,963,153 | ||||||||||||||||||||||||||||
| Diversified Telecommunication Services – 2.6% | ||||||||||||||||||||||||||||||
| 1,000 | Altice France SA/France, 144A | 8.125% | 2/01/27 | B | 1,126,250 | |||||||||||||||||||||||||
| 1,000 | Embarq Corp | 7.995% | 6/01/36 | BB | 1,057,500 | |||||||||||||||||||||||||
| 2,900 | Sprint Capital Corp | 6.875% | 11/15/28 | B+ | 3,124,750 | |||||||||||||||||||||||||
| 250 | Sprint Capital Corp | 8.750% | 3/15/32 | B+ | 303,438 | |||||||||||||||||||||||||
| 1,600 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 1,707,659 | |||||||||||||||||||||||||
| 6,750 | Total Diversified Telecommunication Services | 7,319,597 | ||||||||||||||||||||||||||||
| Electric Utilities – 1.2% | ||||||||||||||||||||||||||||||
| 2,350 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B3 | 2,005,560 | |||||||||||||||||||||||||
| 1,325 | Vistra Operations Co LLC, 144A | 5.625% | 2/15/27 | BB | 1,396,219 | |||||||||||||||||||||||||
| 3,675 | Total Electric Utilities | 3,401,779 | ||||||||||||||||||||||||||||
| Electrical Equipment – 0.3% | ||||||||||||||||||||||||||||||
| 875 | NextEra Energy Operating Partners LP, 144A | 4.250% | 7/15/24 | Ba1 | 911,094 | |||||||||||||||||||||||||
| Electronic Equipment, Instruments & Components – 0.1% | ||||||||||||||||||||||||||||||
| 375 | MTS Systems Corp, 144A | 5.750% | 8/15/27 | B+ | 391,875 | |||||||||||||||||||||||||
19
| Nuveen High Income Bond Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Energy Equipment & Services – 3.1% | ||||||||||||||||||||||||||||||
| $ | 625 | Archrock Partners LP / Archrock Partners Finance Corp |
| 6.000% | 10/01/22 | B+ | $ | 629,687 | ||||||||||||||||||||||
| 1,850 | Archrock Partners LP / Archrock Partners Finance Corp, 144A |
| 6.875% | 4/01/27 | B+ | 1,956,375 | ||||||||||||||||||||||||
| 800 | Archrock Partners LP / Archrock Partners Finance Corp, 144A |
| 6.250% | 4/01/28 | B+ | 824,000 | ||||||||||||||||||||||||
| 1,425 | Ensign Drilling Inc., 144A | 9.250% | 4/15/24 | BB– | 1,344,844 | |||||||||||||||||||||||||
| 2,704 | Metro Exploration Holding Corp | 0.000% | 2/15/27 | N/R | 270 | |||||||||||||||||||||||||
| 447 | Metro Exploration Holding Corp, (4) | 0.000% | 2/15/27 | N/R | — | |||||||||||||||||||||||||
| 1,000 | Nabors Industries Inc. | 5.500% | 1/15/23 | BB– | 960,000 | |||||||||||||||||||||||||
| 38 | Sanjel Corporation, 144A, (4), (5) | 7.500% | 6/19/19 | N/R | — | |||||||||||||||||||||||||
| 1,500 | Transocean Inc., 144A | 7.250% | 11/01/25 | B– | 1,470,000 | |||||||||||||||||||||||||
| 890 | Transocean Pontus Ltd, 144A | 6.125% | 8/01/25 | B1 | 912,250 | |||||||||||||||||||||||||
| 750 | Valaris plc | 7.750% | 2/01/26 | B– | 423,713 | |||||||||||||||||||||||||
| 12,029 | Total Energy Equipment & Services | 8,521,139 | ||||||||||||||||||||||||||||
| Entertainment – 1.0% | ||||||||||||||||||||||||||||||
| 500 | AMC Entertainment Holdings Inc., (3) | 5.750% | 6/15/25 | B3 | 462,500 | |||||||||||||||||||||||||
| 1,250 | AMC Entertainment Holdings Inc. | 5.875% | 11/15/26 | B3 | 1,126,562 | |||||||||||||||||||||||||
| 1,000 | AMC Entertainment Holdings Inc., (3) | 6.125% | 5/15/27 | B3 | 912,500 | |||||||||||||||||||||||||
| 375 | Live Nation Entertainment Inc., 144A | 4.750% | 10/15/27 | Ba3 | 388,125 | |||||||||||||||||||||||||
| 3,125 | Total Entertainment | 2,889,687 | ||||||||||||||||||||||||||||
| Equity Real Estate Investment Trust – 1.2% | ||||||||||||||||||||||||||||||
| 1,750 | Iron Mountain Inc., 144A | 4.875% | 9/15/27 | BB– | 1,806,875 | |||||||||||||||||||||||||
| 1,200 | iStar Inc. | 4.750% | 10/01/24 | BB | 1,243,500 | |||||||||||||||||||||||||
| 300 | VICI Properties LP / VICI Note Co Inc., 144A | 4.250% | 12/01/26 | BB | 309,000 | |||||||||||||||||||||||||
| 3,250 | Total Equity Real Estate Investment Trust | 3,359,375 | ||||||||||||||||||||||||||||
| Food & Staples Retailing – 0.1% | ||||||||||||||||||||||||||||||
| 225 | Albertsons Cos Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC | 5.875% | 2/15/28 | BB– | 239,063 | |||||||||||||||||||||||||
| Food Products – 0.7% | ||||||||||||||||||||||||||||||
| 1,750 | Post Holdings Inc., 144A | 5.625% | 1/15/28 | B+ | 1,885,625 | |||||||||||||||||||||||||
| Gas Utilities – 0.8% | ||||||||||||||||||||||||||||||
| 1,000 | AmeriGas Partners LP / AmeriGas Finance Corp | 5.625% | 5/20/24 | BB | 1,080,000 | |||||||||||||||||||||||||
| 1,000 | AmeriGas Partners LP / AmeriGas Finance Corp | 5.750% | 5/20/27 | BB | 1,097,500 | |||||||||||||||||||||||||
| 2,000 | Total Gas Utilities | 2,177,500 | ||||||||||||||||||||||||||||
| Health Care Providers & Services – 4.0% | ||||||||||||||||||||||||||||||
| 400 | Centene Corp, 144A | 4.625% | 12/15/29 | BBB– | 421,540 | |||||||||||||||||||||||||
| 1,500 | CHS/Community Health Systems Inc., 144A | 8.000% | 3/15/26 | B | 1,545,000 | |||||||||||||||||||||||||
| 1,000 | DaVita Inc. | 5.000% | 5/01/25 | Ba3 | 1,028,750 | |||||||||||||||||||||||||
| 425 | Encompass Health Corp | 4.500% | 2/01/28 | B+ | 440,406 | |||||||||||||||||||||||||
| 225 | MEDNAX Inc., 144A | 6.250% | 1/15/27 | BB | 230,625 | |||||||||||||||||||||||||
| 625 | RegionalCare Hospital Partners Holdings Inc., 144A |
| 8.250% | 5/01/23 | B+ | 660,938 | ||||||||||||||||||||||||
| 2,150 | RegionalCare Hospital Partners Holdings Inc. / LifePoint Health Inc., 144A |
| 9.750% | 12/01/26 | CCC+ | 2,429,500 | ||||||||||||||||||||||||
| 1,750 | Tenet Healthcare Corp | 6.750% | 6/15/23 | B– | 1,922,742 | |||||||||||||||||||||||||
| 1,000 | Tenet Healthcare Corp | 7.000% | 8/01/25 | CCC+ | 1,056,250 | |||||||||||||||||||||||||
| 1,350 | Tenet Healthcare Corp, 144A | 6.250% | 2/01/27 | Ba3 | 1,452,938 | |||||||||||||||||||||||||
| 10,425 | Total Health Care Providers & Services | 11,188,689 | ||||||||||||||||||||||||||||
| Health Care Technology – 0.2% | ||||||||||||||||||||||||||||||
| 1,000 | Exela Intermediate LLC / Exela Finance Inc., 144A |
| 10.000% | 7/15/23 | CCC- | 400,000 | ||||||||||||||||||||||||
| Hotels, Restaurants & Leisure – 0.8% | ||||||||||||||||||||||||||||||
| 1,000 | Golden Nugget Inc., 144A | 8.750% | 10/01/25 | CCC+ | 1,069,375 | |||||||||||||||||||||||||
| 500 | MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc. |
| 4.500% | 1/15/28 | BB+ | 522,500 | ||||||||||||||||||||||||
| 275 | Scientific Games International Inc., 144A | 7.000% | 5/15/28 | B– | 294,250 | |||||||||||||||||||||||||
| 250 | Scientific Games International Inc., 144A | 7.250% | 11/15/29 | B– | 271,875 | |||||||||||||||||||||||||
| 2,025 | Total Hotels, Restaurants & Leisure | 2,158,000 | ||||||||||||||||||||||||||||
20
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Household Durables – 1.9% | ||||||||||||||||||||||||||||||
| $ | 790 | Beazer Homes USA Inc., (3) | 5.875% | 10/15/27 | B– | $ | 797,900 | |||||||||||||||||||||||
| 1,850 | KB Home | 6.875% | 6/15/27 | BB– | 2,141,375 | |||||||||||||||||||||||||
| 1,500 | Lennar Corp | 4.750% | 11/29/27 | Baa2 | 1,616,250 | |||||||||||||||||||||||||
| 675 | Mattamy Group Corp., 144A | 5.250% | 12/15/27 | BB | 702,000 | |||||||||||||||||||||||||
| 4,815 | Total Household Durables | 5,257,525 | ||||||||||||||||||||||||||||
| Independent Power & Renewable Electricity Producers – 0.9% | ||||||||||||||||||||||||||||||
| 1,500 | Calpine Corp, 144A | 5.250% | 6/01/26 | BB+ | 1,561,875 | |||||||||||||||||||||||||
| 750 | TerraForm Power Operating LLC, 144A | 5.000% | 1/31/28 | BB | 792,982 | |||||||||||||||||||||||||
| 2,250 | Total Independent Power & Renewable Electricity Producers |
| 2,354,857 | |||||||||||||||||||||||||||
| Industrial Conglomerates – 0.4% | ||||||||||||||||||||||||||||||
| 1,000 | United Rentals North America Inc. | 6.500% | 12/15/26 | BB– | 1,099,063 | |||||||||||||||||||||||||
| Insurance – 2.3% | ||||||||||||||||||||||||||||||
| 875 | Acrisure LLC / Acrisure Finance Inc., 144A | 8.125% | 2/15/24 | B | 951,562 | |||||||||||||||||||||||||
| 825 | Acrisure LLC / Acrisure Finance Inc., 144A | 10.125% | 8/01/26 | CCC+ | 888,938 | |||||||||||||||||||||||||
| 2,000 | Genworth Holdings Inc. | 4.800% | 2/15/24 | B | 1,954,620 | |||||||||||||||||||||||||
| 1,500 | HUB International Ltd, 144A | 7.000% | 5/01/26 | CCC+ | 1,586,250 | |||||||||||||||||||||||||
| 1,000 | Nationstar Mortgage Holdings Inc., 144A | 9.125% | 7/15/26 | B | 1,107,500 | |||||||||||||||||||||||||
| 6,200 | Total Insurance | 6,488,870 | ||||||||||||||||||||||||||||
| Internet Software & Services – 0.2% | ||||||||||||||||||||||||||||||
| 425 | Camelot Finance SA, 144A | 4.500% | 11/01/26 | B | 436,688 | |||||||||||||||||||||||||
| Leisure Products – 0.8% | ||||||||||||||||||||||||||||||
| 2,000 | Mattel Inc., 144A | 6.750% | 12/31/25 | BB– | 2,149,600 | |||||||||||||||||||||||||
| Machinery – 2.5% | ||||||||||||||||||||||||||||||
| 1,000 | Cloud Crane LLC, 144A | 10.125% | 8/01/24 | B | 1,050,000 | |||||||||||||||||||||||||
| 1,000 | Dana Financing Luxembourg Sarl, 144A | 6.500% | 6/01/26 | BB+ | 1,068,750 | |||||||||||||||||||||||||
| 2,065 | Titan Acquisition Ltd / Titan Co-Borrower LLC, 144A |
| 7.750% | 4/15/26 | CCC+ | 2,044,350 | ||||||||||||||||||||||||
| 2,525 | USA Compression Partners LP / USA Compression Finance Corp |
| 6.875% | 9/01/27 | BB– | 2,630,040 | ||||||||||||||||||||||||
| 6,590 | Total Machinery | 6,793,140 | ||||||||||||||||||||||||||||
| Media – 7.7% | ||||||||||||||||||||||||||||||
| 1,000 | Altice France SA/France, 144A | 7.375% | 5/01/26 | B | 1,073,640 | |||||||||||||||||||||||||
| 975 | Altice Luxembourg SA, 144A | 10.500% | 5/15/27 | B– | 1,111,549 | |||||||||||||||||||||||||
| 1,500 | CSC Holdings LLC, 144A | 7.500% | 4/01/28 | B | 1,695,000 | |||||||||||||||||||||||||
| 1,450 | CSC Holdings LLC, 144A | 6.500% | 2/01/29 | BB | 1,616,750 | |||||||||||||||||||||||||
| 1,775 | Diamond Sports Group LLC / Diamond Sports Finance Co, (3) |
| 6.625% | 8/15/27 | B | 1,726,187 | ||||||||||||||||||||||||
| 2,200 | DISH DBS Corp | 7.750% | 7/01/26 | B1 | 2,330,658 | |||||||||||||||||||||||||
| 2,000 | Entercom Media Corp, 144A, (3) | 7.250% | 11/01/24 | B– | 2,105,000 | |||||||||||||||||||||||||
| 100 | Entercom Media Corp, 144A | 6.500% | 5/01/27 | B | 107,000 | |||||||||||||||||||||||||
| 1,000 | Gray Television Inc., 144A | 5.125% | 10/15/24 | BB– | 1,037,500 | |||||||||||||||||||||||||
| 1,000 | Gray Television Inc., 144A | 5.875% | 7/15/26 | BB– | 1,063,750 | |||||||||||||||||||||||||
| 1,500 | Meredith Corp | 6.875% | 2/01/26 | B+ | 1,559,550 | |||||||||||||||||||||||||
| 250 | Scripps Escrow Inc., 144A | 5.875% | 7/15/27 | B | 261,875 | |||||||||||||||||||||||||
| 1,080 | Sirius XM Radio Inc., 144A | 5.375% | 7/15/26 | BB | 1,147,162 | |||||||||||||||||||||||||
| 3,360 | Terrier Media Buyer Inc., 144A | 8.875% | 12/15/27 | CCC+ | 3,553,200 | |||||||||||||||||||||||||
| 925 | Virgin Media Secured Finance PLC, 144A | 5.500% | 5/15/29 | BB+ | 979,344 | |||||||||||||||||||||||||
| 20,115 | Total Media | 21,368,165 | ||||||||||||||||||||||||||||
| Metals & Mining – 2.2% | ||||||||||||||||||||||||||||||
| 1,000 | Alcoa Nederland Holding BV, 144A | 6.125% | 5/15/28 | BB+ | 1,082,500 | |||||||||||||||||||||||||
| 2,600 | First Quantum Minerals Ltd, 144A | 7.500% | 4/01/25 | B | 2,658,500 | |||||||||||||||||||||||||
| 500 | First Quantum Minerals Ltd, 144A | 6.875% | 3/01/26 | B | 506,250 | |||||||||||||||||||||||||
| 400 | Freeport-McMoRan Inc. | 5.250% | 9/01/29 | Ba1 | 428,520 | |||||||||||||||||||||||||
| 1,500 | Tronox Inc., 144A | 6.500% | 4/15/26 | B | 1,545,300 | |||||||||||||||||||||||||
| 6,000 | Total Metals & Mining | 6,221,070 | ||||||||||||||||||||||||||||
21
| Nuveen High Income Bond Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 10.5% | ||||||||||||||||||||||||||||||
| $ | 1,150 | Antero Midstream Partners LP / Antero Midstream Finance Corp, 144A |
| 5.750% | 3/01/27 | BB+ | $ | 1,011,281 | ||||||||||||||||||||||
| 950 | Antero Midstream Partners LP / Antero Midstream Finance Corp, 144A |
| 5.750% | 1/15/28 | BB+ | 826,500 | ||||||||||||||||||||||||
| 1,350 | California Resources Corp, 144A, (3) | 8.000% | 12/15/22 | B– | 580,500 | |||||||||||||||||||||||||
| 1,000 | Calumet Specialty Products Partners LP / Calumet Finance Corp, (3) |
| 7.625% | 1/15/22 | B– | 1,000,000 | ||||||||||||||||||||||||
| 450 | Calumet Specialty Products Partners LP / Calumet Finance Corp, (3) |
| 7.750% | 4/15/23 | B– | 448,875 | ||||||||||||||||||||||||
| 1,000 | Cheniere Energy Partners LP | 5.625% | 10/01/26 | BB | 1,057,500 | |||||||||||||||||||||||||
| 1,200 | Cheniere Energy Partners LP, 144A | 4.500% | 10/01/29 | BB | 1,233,120 | |||||||||||||||||||||||||
| 1,900 | Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp, 144A |
| 5.625% | 5/01/27 | BB– | 1,926,125 | ||||||||||||||||||||||||
| 1,000 | Denbury Resources Inc., 144A | 7.750% | 2/15/24 | B | 885,000 | |||||||||||||||||||||||||
| 475 | EnLink Midstream LLC | 5.375% | 6/01/29 | BBB– | 446,500 | |||||||||||||||||||||||||
| 1,000 | EnLink Midstream Partners LP | 4.400% | 4/01/24 | BBB– | 970,100 | |||||||||||||||||||||||||
| 575 | Enviva Partners LP / Enviva Partners Finance Corp, 144A |
| 6.500% | 1/15/26 | BB– | 615,612 | ||||||||||||||||||||||||
| 1,000 | Genesis Energy LP / Genesis Energy Finance Corp | 6.750% | 8/01/22 | B+ | 1,010,000 | |||||||||||||||||||||||||
| 900 | Genesis Energy LP / Genesis Energy Finance Corp | 6.500% | 10/01/25 | B+ | 870,750 | |||||||||||||||||||||||||
| 200 | Global Partners LP / GLP Finance Corp, 144A | 7.000% | 8/01/27 | B+ | 212,500 | |||||||||||||||||||||||||
| 1,250 | Hess Midstream Operations LP, 144A | 5.625% | 2/15/26 | BB+ | 1,301,106 | |||||||||||||||||||||||||
| 750 | Hilcorp Energy I LP / Hilcorp Finance Co, 144A | 6.250% | 11/01/28 | BB+ | 712,500 | |||||||||||||||||||||||||
| 500 | Moss Creek Resources Holdings Inc., 144A | 10.500% | 5/15/27 | B+ | 417,500 | |||||||||||||||||||||||||
| 1,600 | Murphy Oil Corp | 5.875% | 12/01/27 | BB+ | 1,680,000 | |||||||||||||||||||||||||
| 325 | NuStar Logistics LP | 6.000% | 6/01/26 | Ba2 | 343,688 | |||||||||||||||||||||||||
| 1,000 | Oasis Petroleum Inc., (3) | 6.875% | 1/15/23 | B+ | 977,500 | |||||||||||||||||||||||||
| 1,000 | Parkland Fuel Corp, 144A | 5.875% | 7/15/27 | BB | 1,070,000 | |||||||||||||||||||||||||
| 1,000 | Peabody Energy Corp, 144A | 6.375% | 3/31/25 | BB– | 920,000 | |||||||||||||||||||||||||
| 1,000 | Range Resources Corp | 5.750% | 6/01/21 | BB | 997,500 | |||||||||||||||||||||||||
| 1,600 | SM Energy Co | 6.125% | 11/15/22 | BB– | 1,616,000 | |||||||||||||||||||||||||
| 1,000 | SM Energy Co, (3) | 5.625% | 6/01/25 | BB– | 949,170 | |||||||||||||||||||||||||
| 1,300 | Southwestern Energy Co | 7.500% | 4/01/26 | BB | 1,202,500 | |||||||||||||||||||||||||
| 525 | Sunoco LP / Sunoco Finance Corp | 4.875% | 1/15/23 | BB | 536,823 | |||||||||||||||||||||||||
| 1,500 | Targa Resources Partners LP / Targa Resources Partners Finance Corp |
| 5.875% | 4/15/26 | BB | 1,593,750 | ||||||||||||||||||||||||
| 425 | Targa Resources Partners LP / Targa Resources Partners Finance Corp, 144A |
| 6.500% | 7/15/27 | BB | 465,375 | ||||||||||||||||||||||||
| 1,000 | Whiting Petroleum Corp | 6.625% | 1/15/26 | BB– | 681,480 | |||||||||||||||||||||||||
| 425 | WPX Energy Inc. | 5.250% | 10/15/27 | BB | 448,375 | |||||||||||||||||||||||||
| 30,350 | Total Oil, Gas & Consumable Fuels | 29,007,630 | ||||||||||||||||||||||||||||
| Personal Products – 0.2% | ||||||||||||||||||||||||||||||
| 550 | First Quality Finance Co Inc., 144A | 5.000% | 7/01/25 | B+ | 572,231 | |||||||||||||||||||||||||
| Pharmaceuticals – 2.1% | ||||||||||||||||||||||||||||||
| 200 | Bausch Health Americas Inc., 144A | 8.500% | 1/31/27 | B | 227,760 | |||||||||||||||||||||||||
| 575 | Bausch Health Cos Inc., 144A | 5.875% | 5/15/23 | B | 580,031 | |||||||||||||||||||||||||
| 200 | Bausch Health Cos Inc., 144A | 5.750% | 8/15/27 | BB | 217,000 | |||||||||||||||||||||||||
| 450 | Bausch Health Cos Inc., 144A | 7.000% | 1/15/28 | B | 495,000 | |||||||||||||||||||||||||
| 350 | Bausch Health Cos Inc., 144A | 5.000% | 1/30/28 | B | 359,237 | |||||||||||||||||||||||||
| 450 | Bausch Health Cos Inc., 144A | 5.250% | 1/30/30 | B | 466,650 | |||||||||||||||||||||||||
| 2,575 | Horizon Pharma USA Inc., 144A | 5.500% | 8/01/27 | BB– | 2,781,268 | |||||||||||||||||||||||||
| 750 | Par Pharmaceutical Inc., 144A | 7.500% | 4/01/27 | B+ | 746,250 | |||||||||||||||||||||||||
| 5,550 | Total Pharmaceuticals | 5,873,196 | ||||||||||||||||||||||||||||
| Professional Services – 0.2% | ||||||||||||||||||||||||||||||
| 650 | ASGN Inc., 144A | 4.625% | 5/15/28 | BB– | 668,122 | |||||||||||||||||||||||||
| Software – 0.3% | ||||||||||||||||||||||||||||||
| 850 | SS&C Technologies Inc., 144A | 5.500% | 9/30/27 | B+ | 907,375 | |||||||||||||||||||||||||
| Specialty Retail – 3.9% | ||||||||||||||||||||||||||||||
| 1,000 | L Brands Inc. | 6.875% | 11/01/35 | Ba2 | 895,000 | |||||||||||||||||||||||||
| 800 | Lithia Motors Inc., 144A | 4.625% | 12/15/27 | BB | 822,288 | |||||||||||||||||||||||||
| 2,000 | PetSmart Inc., 144A | 5.875% | 6/01/25 | B | 2,037,500 | |||||||||||||||||||||||||
| 2,000 | PetSmart Inc.,144A, (3) | 8.875% | 6/01/25 | CCC+ | 1,975,000 | |||||||||||||||||||||||||
| 1,000 | Staples Inc., 144A | 7.500% | 4/15/26 | B+ | 1,037,500 | |||||||||||||||||||||||||
| 3,975 | Staples Inc., 144A | 10.750% | 4/15/27 | B– | 4,034,625 | |||||||||||||||||||||||||
| 10,775 | Total Specialty Retail | 10,801,913 | ||||||||||||||||||||||||||||
22
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Trading Companies & Distributors – 1.4% | ||||||||||||||||||||||||||||||
| $ | 1,500 | Beacon Roofing Supply Inc., 144A | 4.875% | 11/01/25 | B– | $ | 1,507,500 | |||||||||||||||||||||||
| 225 | Beacon Roofing Supply Inc., 144A | 4.500% | 11/15/26 | BB | 231,750 | |||||||||||||||||||||||||
| 2,000 | H&E Equipment Services Inc. | 5.625% | 9/01/25 | BB– | 2,095,000 | |||||||||||||||||||||||||
| 3,725 | Total Trading Companies & Distributors | 3,834,250 | ||||||||||||||||||||||||||||
| Wireless Telecommunication Services – 0.9% | ||||||||||||||||||||||||||||||
| 1,400 | Level 3 Financing Inc. | 5.250% | 3/15/26 | BB | 1,456,000 | |||||||||||||||||||||||||
| 1,000 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BB+ | 1,075,000 | |||||||||||||||||||||||||
| 2,400 | Total Wireless Telecommunication Services |
| 2,531,000 | |||||||||||||||||||||||||||
| $ | 213,899 | Total Corporate Bonds (cost $208,600,145) |
| 215,496,391 | ||||||||||||||||||||||||||
| Shares | Description (1), (7) | Value | ||||||||||||||||||||||||||||
EXCHANGE-TRADED FUNDS – 5.1% | ||||||||||||||||||||||||||||||
| 45,000 | iShares iBoxx High Yield Corporate Bond ETF |
| $ | 3,957,300 | ||||||||||||||||||||||||||
| 185,000 | SPDR Bloomberg Barclays Short Term High Yield Bond ETF |
| 4,983,900 | |||||||||||||||||||||||||||
| 46,400 | SPDR Bloomberg Barclays High Yield Bond ETF |
| 5,082,656 | |||||||||||||||||||||||||||
Total Exchange-Traded Funds (cost $14,002,880) |
| 14,023,856 | ||||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 1.5% (8) |
| |||||||||||||||||||||||||||||
| Banks – 0.9% | ||||||||||||||||||||||||||||||
| $ | 1,000 | Royal Bank of Scotland Group PLC | 7.500% | N/A (9) | BB+ | $ | 1,021,880 | |||||||||||||||||||||||
| 1,385 | Societe Generale SA, 144A | 6.750% | N/A (9) | BB+ | 1,528,694 | |||||||||||||||||||||||||
| 2,385 | Total Banks | 2,550,574 | ||||||||||||||||||||||||||||
| Capital Markets – 0.6% | ||||||||||||||||||||||||||||||
| 1,500 | Credit Suisse Group AG, 144A | 7.500% | N/A (9) | BB | 1,641,525 | |||||||||||||||||||||||||
| $ | 3,885 | Total Contingent Capital Securities (cost $3,747,754) |
| 4,192,099 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon (10) | Reference Rate (10) | Spread (10) | Maturity (11) | Ratings (2) | Value | |||||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 1.1% |
| |||||||||||||||||||||||||||||
| Commercial Services & Supplies – 0.8% | ||||||||||||||||||||||||||||||
| $ | 2,000 | Dun & Bradstreet Corp., Initial Term Loan | 6.792% | 1-Month LIBOR | | 5.000% | | 2/08/26 | BB | $ | 2,020,000 | |||||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.2% | ||||||||||||||||||||||||||||||
| 600 | Buckeye Partners, LP Term Loan B | 4.441% | 1-Month LIBOR | 2.750% | 11/01/26 | BBB– | 606,168 | |||||||||||||||||||||||
| Professional Services – 0.1% | ||||||||||||||||||||||||||||||
| 300 | Da Vinci Purchaser Corp, Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B | 300,750 | |||||||||||||||||||||||
| $ | 2,900 | Total Variable Rate Senior Loan Interests (cost $2,857,315) |
| 2,926,918 | ||||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.8% |
| |||||||||||||||||||||||||||||
| Food Products – 0.3% | ||||||||||||||||||||||||||||||
| 34,685 | CHS Inc. | 6.750% | N/R | $ | 926,089 | |||||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.5% | ||||||||||||||||||||||||||||||
| 60,000 | NuStar Energy LP | 8.500% | B1 | 1,444,200 | ||||||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $2,105,041) |
| 2,370,289 | ||||||||||||||||||||||||||||
23
| Nuveen High Income Bond Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 0.5% |
| |||||||||||||||||||||||||||||
| Commercial Services & Supplies – 0.5% | ||||||||||||||||||||||||||||||
| $ | 1,250 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB+ | $ | 1,378,125 | |||||||||||||||||||||||
| $ | 1,250 | Total $1,000 Par (or similar) Institutional Preferred (cost $1,267,147) |
| 1,378,125 | ||||||||||||||||||||||||||
| 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+ | $ | 1,103,200 | ||||||||||||||||||||||
| $ | 1,000 | Total Sovereign Debt (cost $1,000,000) | 1,103,200 | |||||||||||||||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||||||||||||
| Energy Equipment & Services – 0.0% | ||||||||||||||||||||||||||||||
| 6 | Golden Close Maritime Corp Ltd, (4) | $ | — | |||||||||||||||||||||||||||
| Metals & Mining – 0.0% | ||||||||||||||||||||||||||||||
| 499,059 | Northland Resources SE, (4), (12) | 50 | ||||||||||||||||||||||||||||
| Road & Rail – 0.0% | ||||||||||||||||||||||||||||||
| 8,907 | Jack Cooper Enterprises Inc., (4), (12) | 89 | ||||||||||||||||||||||||||||
Total Common Stocks (cost $218,592) |
| �� | 139 | |||||||||||||||||||||||||||
Total Long-Term Investments (cost $233,798,874) |
| 241,491,017 | ||||||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDINGS – 5.3% |
| |||||||||||||||||||||||||||||
| Money Market Funds – 5.3% | ||||||||||||||||||||||||||||||
| 14,714,943 | First American Government Obligation Fund Class X, (6) |
| 1.513% (13) | $ | 14,714,943 | |||||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $14,714,943) |
| 14,714,943 | ||||||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 11.7% | ||||||||||||||||||||||||||||||
| MONEY MARKET FUNDS – 11.7% | ||||||||||||||||||||||||||||||
| 32,477,526 | First American Treasury Obligation Fund, Class Z |
| 1.488% (13) | $ | 32,477,526 | |||||||||||||||||||||||||
Total Short-Term Investments (cost $32,477,526) |
| 32,477,526 | ||||||||||||||||||||||||||||
Total Investments (cost $280,991,343) – 104.1% |
| 288,683,486 | ||||||||||||||||||||||||||||
Other Assets Less Liabilities – (4.1)% (14) |
| (11,449,592 | ) | |||||||||||||||||||||||||||
Net Assets – 100% | $ | 277,233,894 | ||||||||||||||||||||||||||||
Investments in Derivatives
Credit Default Swaps – OTC Cleared
Referenced Entity | Buy/Sell Protection (15) | Notional Amount | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Maturity Date | Premiums Paid (Received) | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ Payable | |||||||||||||||||||||||||||
CDX.NA.HY.32 | Sell | $ | 19,600,000 | 5.00 | % | Quarterly | 6/20/24 | $ | 1,292,111 | $ | 1,930,551 | $ | 638,440 | $ | (9,954 | ) | ||||||||||||||||||||
24
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 applicable to common shares unless otherwise noted. |
| (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 $14,179,683. |
| (4) | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information. |
| (5) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
| (6) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives, Securities Lending for more information. |
| (7) | A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
| (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) | Perpetual security. Maturity date is not applicable. |
| (10) | 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. |
| (11) | Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
| (12) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
| (13) | The rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
| (14) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
| (15) | The Fund entered into the credit default swaps to gain investment exposure to the referenced entity. Selling protection has a similar credit risk position to owning the referenced entity. Buying protection has a similar credit risk position to selling the referenced entity short. |
| 144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
| ETF | Exchange-Traded Fund |
| LIBOR | London Inter-Banking 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. |
| SPDR | Standard & Poor’s Depositary Receipt |
| TBD | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date. |
| WI/DD | Purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
25
Nuveen Strategic Income Fund
Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
LONG-TERM INVESTMENTS – 98.4% | ||||||||||||||||||||||||||||||
CORPORATE BONDS – 37.2% | ||||||||||||||||||||||||||||||
| Aerospace & Defense – 0.3% | ||||||||||||||||||||||||||||||
| $ | 930 | Bombardier Inc, 144A |
| 7.500% | 3/15/25 | B | $ | 959,053 | ||||||||||||||||||||||
| 400 | Bombardier Inc, 144A |
| 7.875% | 4/15/27 | B | 411,500 | ||||||||||||||||||||||||
| 900 | TransDigm Inc., 144A |
| 5.500% | 11/15/27 | B– | 910,108 | ||||||||||||||||||||||||
| 2,230 | Total Aerospace & Defense |
| 2,280,661 | |||||||||||||||||||||||||||
| Air Freight & Logistics – 0.6% | ||||||||||||||||||||||||||||||
| 2,280 | FedEx Corp |
| 3.300% | 3/15/27 | BBB | 2,354,853 | ||||||||||||||||||||||||
| 1,500 | XPO Logistics Inc |
| 6.500% | 6/15/22 | BB– | 1,528,500 | ||||||||||||||||||||||||
| 3,780 | Total Air Freight & Logistics |
| 3,883,353 | |||||||||||||||||||||||||||
| Airlines – 0.6% | ||||||||||||||||||||||||||||||
| 770 | American Airlines2013-2 Class B Pass Through Trust, 144A |
| 5.600% | 7/15/20 | BBB– | 782,443 | ||||||||||||||||||||||||
| 857 | American Airlines2016-1 Class AA Pass Through Trust |
| 3.575% | 1/15/28 | AA+ | 899,119 | ||||||||||||||||||||||||
| 2,000 | American Airlines Group Inc, 144A |
| 4.625% | 3/01/20 | BB– | 2,003,140 | ||||||||||||||||||||||||
| 600 | Latam Finance Ltd, 144A |
| 7.000% | 3/01/26 | BB– | 649,506 | ||||||||||||||||||||||||
| 4,227 | Total Airlines |
| 4,334,208 | |||||||||||||||||||||||||||
| Auto Components – 0.3% | ||||||||||||||||||||||||||||||
| 600 | Adient Global Holdings Ltd, 144A |
| 4.875% | 8/15/26 | B | 535,500 | ||||||||||||||||||||||||
| 175 | Dana Inc |
| 5.375% | 11/15/27 | BB+ | 180,250 | ||||||||||||||||||||||||
| 500 | Icahn Enterprises LP / Icahn Enterprises Finance Corp, 144A |
| 5.250% | 5/15/27 | BB+ | 511,315 | ||||||||||||||||||||||||
| 1,000 | Panther BF Aggregator 2 LP / Panther Finance Co Inc, 144A |
| 8.500% | 5/15/27 | B | 1,062,500 | ||||||||||||||||||||||||
| 2,275 | Total Auto Components |
| 2,289,565 | |||||||||||||||||||||||||||
| Automobiles – 0.5% | ||||||||||||||||||||||||||||||
| 1,425 | Ford Motor Credit Co LLC |
| 5.584% | 3/18/24 | BBB | 1,541,434 | ||||||||||||||||||||||||
| 2,065 | General Motors Co |
| 4.000% | 4/01/25 | BBB | 2,175,457 | ||||||||||||||||||||||||
| 3,490 | Total Automobiles |
| 3,716,891 | |||||||||||||||||||||||||||
| Banks – 6.8% | ||||||||||||||||||||||||||||||
| 2,435 | Banco Santander SA |
| 3.800% | 2/23/28 | A | 2,560,411 | ||||||||||||||||||||||||
| 1,060 | Bank of America Corp |
| 3.559% | 4/23/27 | A+ | 1,119,515 | ||||||||||||||||||||||||
| 1,105 | Bank of America Corp |
| 3.248% | 10/21/27 | A+ | 1,150,665 | ||||||||||||||||||||||||
| 3,662 | Bank of America Corp |
| 3.419% | 12/20/28 | A+ | 3,840,310 | ||||||||||||||||||||||||
| 850 | Banque Ouest Africaine de Developpement, 144A |
| 5.000% | 7/27/27 | Baa1 | 900,915 | ||||||||||||||||||||||||
| 2,865 | Barclays PLC |
| 3.650% | 3/16/25 | A | 2,982,106 | ||||||||||||||||||||||||
| 2,010 | BNP Paribas SA, 144A |
| 4.375% | 5/12/26 | A | 2,156,232 | ||||||||||||||||||||||||
| 2,995 | Citigroup Inc |
| 4.300% | 11/20/26 | A– | 3,257,578 | ||||||||||||||||||||||||
| 1,895 | Citigroup Inc |
| 4.450% | 9/29/27 | A– | 2,085,397 | ||||||||||||||||||||||||
| 3,075 | Citigroup Inc |
| 3.980% | 3/20/30 | A | 3,361,496 | ||||||||||||||||||||||||
| 3,360 | Goldman Sachs Group Inc |
| 4.000% | 3/03/24 | A | 3,577,836 | ||||||||||||||||||||||||
| 2,375 | HSBC Holdings PLC |
| 4.375% | 11/23/26 | A | 2,570,659 | ||||||||||||||||||||||||
| 2,100 | ING Groep NV |
| 3.950% | 3/29/27 | A+ | 2,258,751 | ||||||||||||||||||||||||
| 1,100 | JPMorgan Chase & Co |
| 3.875% | 9/10/24 | A+ | 1,176,756 | ||||||||||||||||||||||||
| 4,410 | JPMorgan Chase & Co |
| 3.702% | 5/06/30 | AA– | 4,744,491 | ||||||||||||||||||||||||
| 1,885 | PNC Financial Services Group Inc |
| 3.150% | 5/19/27 | A+ | 1,974,949 | ||||||||||||||||||||||||
| 2,000 | Quicken Loans Inc, 144A |
| 5.250% | 1/15/28 | Ba1 | 2,070,000 | ||||||||||||||||||||||||
| 2,810 | Wells Fargo & Co |
| 2.879% | 10/30/30 | A+ | 2,825,242 | ||||||||||||||||||||||||
| 1,500 | Zions Bancorp NA |
| 3.250% | 10/29/29 | BBB | 1,470,836 | ||||||||||||||||||||||||
| 43,492 | Total Banks |
| 46,084,145 | |||||||||||||||||||||||||||
26
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| Building Products – 0.1% | ||||||||||||||||||||||||||
| $ | 930 | American Woodmark Corp, 144A | 4.875% | 3/15/26 | BB | $ | 953,250 | |||||||||||||||||||
| Capital Markets – 1.9% | ||||||||||||||||||||||||||
| 1,125 | Donnelley Financial Solutions Inc | 8.250% | 10/15/24 | B | 1,150,313 | |||||||||||||||||||||
| 1,375 | Goldman Sachs Group Inc | 5.250% | 7/27/21 | A | 1,442,699 | |||||||||||||||||||||
| 900 | Goldman Sachs Group Inc | 5.750% | 1/24/22 | A | 965,783 | |||||||||||||||||||||
| 2,295 | Goldman Sachs Group Inc | 4.250% | 10/21/25 | A– | 2,490,078 | |||||||||||||||||||||
| 1,930 | Morgan Stanley | 4.000% | 7/23/25 | A | 2,086,854 | |||||||||||||||||||||
| 4,635 | Morgan Stanley | 3.950% | 4/23/27 | A– | 4,967,470 | |||||||||||||||||||||
| 12,260 | Total Capital Markets | 13,103,197 | ||||||||||||||||||||||||
| Chemicals – 1.3% | ||||||||||||||||||||||||||
| 3,000 | Agrium Inc | 3.375% | 3/15/25 | BBB | 3,061,978 | |||||||||||||||||||||
| 995 | Chemours Co | 5.375% | 5/15/27 | Ba3 | 880,575 | |||||||||||||||||||||
| 1,465 | DuPont de Nemours Inc | 4.493% | 11/15/25 | A– | 1,611,838 | |||||||||||||||||||||
| 1,500 | NOVA Chemicals Corp, 144A | 5.250% | 8/01/23 | BB+ | 1,531,935 | |||||||||||||||||||||
| 1,350 | NOVA Chemicals Corp, 144A | 5.000% | 5/01/25 | BB+ | 1,377,000 | |||||||||||||||||||||
| 8,310 | Total Chemicals | 8,463,326 | ||||||||||||||||||||||||
| Commercial Services & Supplies – 0.3% | ||||||||||||||||||||||||||
| 1,575 | ADT Security Corp, 144A | 4.875% | 7/15/32 | BB– | 1,445,062 | |||||||||||||||||||||
| 225 | GFL Environmental Inc., 144A | 7.000% | 6/01/26 | CCC+ | 237,690 | |||||||||||||||||||||
| 100 | GFL Environmental Inc., 144A | 5.125% | 12/15/26 | B+ | 105,138 | |||||||||||||||||||||
| 275 | GFL Environmental Inc, 144A | 8.500% | 5/01/27 | CCC+ | 302,500 | |||||||||||||||||||||
| 2,175 | Total Commercial Services & Supplies | 2,090,390 | ||||||||||||||||||||||||
| Communications Equipment – 0.6% | ||||||||||||||||||||||||||
| 1,950 | CommScope Inc, 144A | 8.250% | 3/01/27 | B– | 2,052,375 | |||||||||||||||||||||
| 1,750 | IHS Netherlands Holdco BV, 144A | 8.000% | 9/18/27 | B+ | 1,859,375 | |||||||||||||||||||||
| 3,700 | Total Communications Equipment | 3,911,750 | ||||||||||||||||||||||||
| Construction Materials – 0.4% | ||||||||||||||||||||||||||
| 825 | Cemex SAB de CV, 144A | 5.450% | 11/19/29 | BB | 862,125 | |||||||||||||||||||||
| 1,500 | Gates Global LLC / Gates Global Co, 144A | 6.250% | 1/15/26 | B | 1,525,815 | |||||||||||||||||||||
| 2,325 | Total Construction Materials | 2,387,940 | ||||||||||||||||||||||||
| Consumer Finance – 1.5% | ||||||||||||||||||||||||||
| 1,780 | Capital One Financial Corp | 3.750% | 3/09/27 | A– | 1,896,629 | |||||||||||||||||||||
| 1,000 | Curo Group Holdings Corp, 144A | 8.250% | 9/01/25 | B– | 879,980 | |||||||||||||||||||||
| 3,310 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 3,571,844 | |||||||||||||||||||||
| 745 | Navient Corp, (3) | 6.750% | 6/15/26 | BB | 818,830 | |||||||||||||||||||||
| 1,500 | Refinitiv US Holdings Inc, 144A | 8.250% | 11/15/26 | B+ | 1,689,375 | |||||||||||||||||||||
| 425 | Springleaf Finance Corp | 5.375% | 11/15/29 | BB– | 443,615 | |||||||||||||||||||||
| 1,000 | TMX Finance LLC / TitleMax Finance Corp, 144A, (3) | 11.125% | 4/01/23 | B– | 905,000 | |||||||||||||||||||||
| 9,760 | Total Consumer Finance | 10,205,273 | ||||||||||||||||||||||||
| Diversified Consumer Services – 0.2% | ||||||||||||||||||||||||||
| 1,500 | frontdoor Inc, 144A | 6.750% | 8/15/26 | B2 | 1,635,000 | |||||||||||||||||||||
| Diversified Financial Services – 0.1% | ||||||||||||||||||||||||||
| 500 | Sierra Ltd, 144A,(3-Month U.S. Treasury Bill reference rate + 3.250% spread), (WI/DD) (4) | 4.794% | 12/28/22 | N/R | 500,000 | |||||||||||||||||||||
| Diversified Telecommunication Services – 1.6% | ||||||||||||||||||||||||||
| 3,215 | AT&T Inc | 3.400% | 5/15/25 | A– | 3,367,479 | |||||||||||||||||||||
| 1,805 | AT&T Inc | 3.875% | 1/15/26 | A– | 1,931,629 | |||||||||||||||||||||
| 500 | Sprint Capital Corp | 6.875% | 11/15/28 | B+ | 538,750 | |||||||||||||||||||||
| 2,650 | Telefonica Emisiones SA | 4.103% | 3/08/27 | BBB | 2,865,492 | |||||||||||||||||||||
| 2,200 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 2,348,031 | |||||||||||||||||||||
| 10,370 | Total Diversified Telecommunication Services | 11,051,381 | ||||||||||||||||||||||||
27
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| Electric Utilities – 1.1% | ||||||||||||||||||||||||||
| $ | 1,375 | Adani Green Energy UP Ltd / Prayatna Developers Pvt Ltd / Parampujya Solar Energ, 144A | 6.250% | 12/10/24 | BB+ | $ | 1,477,713 | |||||||||||||||||||
| 1,262 | Berkshire Hathaway Energy Co | 6.125% | 4/01/36 | A– | 1,736,919 | |||||||||||||||||||||
| 600 | Empresas Publicas de Medellin ESP, 144A | 4.250% | 7/18/29 | BBB | 623,523 | |||||||||||||||||||||
| 1,000 | Perusahaan Listrik Negara PT, 144A | 6.150% | 5/21/48 | Baa2 | 1,261,500 | |||||||||||||||||||||
| 1,000 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B3 | 853,430 | |||||||||||||||||||||
| 1,725 | Vistra Operations Co LLC, 144A | 5.625% | 2/15/27 | BB | 1,817,719 | |||||||||||||||||||||
| 6,962 | Total Electric Utilities | 7,770,804 | ||||||||||||||||||||||||
| Energy Equipment & Services – 0.6% | ||||||||||||||||||||||||||
| 1,100 | Archrock Partners LP / Archrock Partners Finance Corp, 144A | 6.875% | 4/01/27 | B+ | 1,163,250 | |||||||||||||||||||||
| 550 | Archrock Partners LP / Archrock Partners Finance Corp | 6.250% | 4/01/28 | B+ | 566,500 | |||||||||||||||||||||
| 1,625 | Ensign Drilling Inc, 144A | 9.250% | 4/15/24 | BB– | 1,533,594 | |||||||||||||||||||||
| 1,500 | Valaris plc | 5.200% | 3/15/25 | B– | 832,500 | |||||||||||||||||||||
| 4,775 | Total Energy Equipment & Services | 4,095,844 | ||||||||||||||||||||||||
| Entertainment – 0.0% | ||||||||||||||||||||||||||
| 250 | Live Nation Entertainment Inc, 144A | 4.750% | 10/15/27 | Ba3 | 258,750 | |||||||||||||||||||||
| Equity Real Estate Investment Trust – 1.1% | ||||||||||||||||||||||||||
| 2,070 | American Tower Corp | 5.000% | 2/15/24 | BBB | 2,278,453 | |||||||||||||||||||||
| 1,130 | Cibanco SA Ibm / PLA Administradora Industrial S de RL de CV, 144A | 4.962% | 7/18/29 | Baa3 | 1,168,149 | |||||||||||||||||||||
| 1,335 | Regency Centers LP | 2.950% | 9/15/29 | BBB+ | 1,332,251 | |||||||||||||||||||||
| 2,400 | SBA Tower Trust, 144A | 2.836% | 1/15/25 | A2 | 2,423,409 | |||||||||||||||||||||
| 6,935 | Total Equity Real Estate Investment Trust | 7,202,262 | ||||||||||||||||||||||||
| Food & Staples Retailing – 0.5% | ||||||||||||||||||||||||||
| 2,990 | CVS Health Corp | 4.300% | 3/25/28 | BBB | 3,262,794 | |||||||||||||||||||||
| Food Products – 0.5% | ||||||||||||||||||||||||||
| 1,050 | BRF SA, 144A | 4.875% | 1/24/30 | Ba2 | 1,082,823 | |||||||||||||||||||||
| 1,350 | NBM US Holdings Inc, 144A | 6.625% | 8/06/29 | BB– | 1,466,113 | |||||||||||||||||||||
| 800 | Post Holdings Inc, 144A | 5.625% | 1/15/28 | B+ | 862,000 | |||||||||||||||||||||
| 3,200 | Total Food Products | 3,410,936 | ||||||||||||||||||||||||
| Gas Utilities – 0.2% | ||||||||||||||||||||||||||
| 1,250 | Suburban Propane Partners LP/Suburban Energy Finance Corp | 5.500% | 6/01/24 | BB– | 1,284,375 | |||||||||||||||||||||
| Health Care Providers & Services – 0.7% | ||||||||||||||||||||||||||
| 1,515 | Centene Corp | 5.375% | 6/01/26 | BBB– | 1,607,794 | |||||||||||||||||||||
| 350 | Centene Corp, 144A | 4.625% | 12/15/29 | BBB– | 368,847 | |||||||||||||||||||||
| 715 | CHS/Community Health Systems Inc | 6.250% | 3/31/23 | BB | 725,725 | |||||||||||||||||||||
| 100 | HCA Inc | 5.625% | 9/01/28 | Ba2 | 113,960 | |||||||||||||||||||||
| 1,525 | Tenet Healthcare Corp, 144A | 6.250% | 2/01/27 | Ba3 | 1,641,281 | |||||||||||||||||||||
| 4,205 | Total Health Care Providers & Services | 4,457,607 | ||||||||||||||||||||||||
| Hotels, Restaurants & Leisure – 0.2% | ||||||||||||||||||||||||||
| 1,230 | Hilton Domestic Operating Co Inc | 5.125% | 5/01/26 | BB+ | 1,294,575 | |||||||||||||||||||||
| 225 | Melco Resorts Finance Ltd, 144A | 5.375% | 12/04/29 | BB | 230,571 | |||||||||||||||||||||
| 1,455 | Total Hotels, Restaurants & Leisure | 1,525,146 | ||||||||||||||||||||||||
| Household Durables – 0.3% | ||||||||||||||||||||||||||
| 1,940 | Harman International Industries Inc | 4.150% | 5/15/25 | A | 2,066,588 | |||||||||||||||||||||
| Independent Power & Renewable Electricity Producers – 0.2% | ||||||||||||||||||||||||||
| 600 | Azure Power Solar Energy Pvt Ltd, 144A | 5.650% | 12/24/24 | Ba2 | 612,960 | |||||||||||||||||||||
| 1,000 | Calpine Corp, 144A | 5.250% | 6/01/26 | BB+ | 1,041,250 | |||||||||||||||||||||
| 1,600 | Total Independent Power & Renewable Electricity Producers | 1,654,210 | ||||||||||||||||||||||||
28
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| Industrial Conglomerates – 0.1% | ||||||||||||||||||||||||||
| $ | 750 | United Rentals North America Inc | 6.500% | 12/15/26 | BB– | $ | 824,297 | |||||||||||||||||||
| Insurance – 1.3% | ||||||||||||||||||||||||||
| 1,230 | Genworth Holdings Inc | 4.800% | 2/15/24 | B | 1,202,091 | |||||||||||||||||||||
| 1,940 | Liberty Mutual Group Inc, 144A | 4.569% | 2/01/29 | BBB | 2,165,153 | |||||||||||||||||||||
| 750 | Nationstar Mortgage Holdings Inc, 144A | 8.125% | 7/15/23 | B | 793,890 | |||||||||||||||||||||
| 1,805 | Willis North America Inc | 3.600% | 5/15/24 | BBB | 1,884,426 | |||||||||||||||||||||
| 2,225 | XLIT Ltd | 4.450% | 3/31/25 | BBB+ | 2,422,013 | |||||||||||||||||||||
| 7,950 | Total Insurance | 8,467,573 | ||||||||||||||||||||||||
| Internet Software & Services – 0.0% | ||||||||||||||||||||||||||
| 100 | Camelot Finance SA, 144A | 4.500% | 11/01/26 | B | 102,750 | |||||||||||||||||||||
| IT Services – 0.3% | ||||||||||||||||||||||||||
| 1,680 | Fidelity National Information Services Inc | 3.750% | 5/21/29 | BBB | 1,836,747 | |||||||||||||||||||||
| Leisure Products – 0.1% | ||||||||||||||||||||||||||
| 750 | Mattel Inc, 144A | 6.750% | 12/31/25 | BB– | 806,100 | |||||||||||||||||||||
| Machinery – 0.5% | ||||||||||||||||||||||||||
| 700 | Cloud Crane LLC, 144A | 10.125% | 8/01/24 | B | 735,000 | |||||||||||||||||||||
| 1,405 | Ingersoll-Rand Luxembourg Finance SA | 3.800% | 3/21/29 | BBB | 1,506,862 | |||||||||||||||||||||
| 975 | USA Compression Partners LP / USA Compression Finance Corp | 6.875% | 9/01/27 | BB– | 1,015,560 | |||||||||||||||||||||
| 3,080 | Total Machinery | 3,257,422 | ||||||||||||||||||||||||
| Marine – 0.2% | ||||||||||||||||||||||||||
| 1,000 | Stena International SA, 144A | 5.750% | 3/01/24 | BB– | 1,025,000 | |||||||||||||||||||||
| Media – 2.0% | ||||||||||||||||||||||||||
| 1,820 | Charter Communications Operating LLC / Charter Communications Operating Capital | 5.125% | 7/01/49 | BBB– | 1,974,995 | |||||||||||||||||||||
| 2,650 | Comcast Corp | 2.650% | 2/01/30 | A– | 2,657,274 | |||||||||||||||||||||
| 1,790 | Comcast Corp | 3.969% | 11/01/47 | A– | 1,968,660 | |||||||||||||||||||||
| 1,200 | CSC Holdings LLC, 144A | 6.500% | 2/01/29 | BB | 1,338,000 | |||||||||||||||||||||
| 750 | Diamond Sports Group LLC / Diamond Sports Finance Co, (3) | 6.625% | 8/15/27 | B | 729,375 | |||||||||||||||||||||
| 1,500 | DISH DBS Corp | 7.750% | 7/01/26 | B1 | 1,589,085 | |||||||||||||||||||||
| 100 | Entercom Media Corp, 144A | 6.500% | 5/01/27 | B | 107,000 | |||||||||||||||||||||
| 1,900 | Grupo Televisa SAB | 5.250% | 5/24/49 | BBB+ | 2,049,625 | |||||||||||||||||||||
| 1,000 | Meredith Corp | 6.875% | 2/01/26 | B+ | 1,039,700 | |||||||||||||||||||||
| 12,710 | Total Media | 13,453,714 | ||||||||||||||||||||||||
| Metals & Mining – 0.5% | ||||||||||||||||||||||||||
| 1,250 | First Quantum Minerals Ltd, 144A | 6.500% | 3/01/24 | B | 1,253,125 | |||||||||||||||||||||
| 1,750 | Tronox Inc, 144A, (3) | 6.500% | 4/15/26 | B | 1,802,850 | |||||||||||||||||||||
| 3,000 | Total Metals & Mining | 3,055,975 | ||||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 4.6% | ||||||||||||||||||||||||||
| 600 | Calumet Specialty Products Partners LP / Calumet Finance Corp, (3) | 7.750% | 4/15/23 | B– | 598,500 | |||||||||||||||||||||
| 1,875 | Cosan Ltd, 144A | 5.500% | 9/20/29 | BB | 1,954,687 | |||||||||||||||||||||
| 1,000 | Denbury Resources Inc, 144A | 9.000% | 5/15/21 | B | 967,500 | |||||||||||||||||||||
| 600 | Denbury Resources Inc, 144A | 7.750% | 2/15/24 | B | 531,000 | |||||||||||||||||||||
| 725 | Diamondback Energy Inc | 3.250% | 12/01/26 | BBB | 733,017 | |||||||||||||||||||||
| 1,250 | Ecopetrol SA | 5.875% | 5/28/45 | BBB | 1,473,437 | |||||||||||||||||||||
| 250 | EnLink Midstream LLC | 5.375% | 6/01/29 | BBB– | 235,000 | |||||||||||||||||||||
| 400 | Enviva Partners LP / Enviva Partners Finance Corp, 144A | 6.500% | 1/15/26 | BB– | 428,252 | |||||||||||||||||||||
| 1,125 | KazMunayGas National Co JSC, 144A | 5.375% | 4/24/30 | Baa3 | 1,302,413 | |||||||||||||||||||||
| 750 | Medco Oak Tree Pte Ltd, 144A | 7.375% | 5/14/26 | B+ | 764,065 | |||||||||||||||||||||
| 2,000 | Moss Creek Resources Holdings Inc, 144A | 10.500% | 5/15/27 | B+ | 1,670,000 | |||||||||||||||||||||
| 3,795 | MPLX LP | 4.875% | 6/01/25 | BBB | 4,141,864 | |||||||||||||||||||||
| 1,200 | Murphy Oil Corp | 5.875% | 12/01/27 | BB+ | 1,260,000 | |||||||||||||||||||||
| 2,000 | Occidental Petroleum Corp | 4.300% | 8/15/39 | BBB+ | 2,034,421 | |||||||||||||||||||||
| 1,340 | ONEOK Inc | 3.400% | 9/01/29 | BBB | 1,359,679 | |||||||||||||||||||||
| 1,000 | Peabody Energy Corp, 144A | 6.375% | 3/31/25 | BB– | 920,000 | |||||||||||||||||||||
29
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| Oil, Gas & Consumable Fuels(continued) | ||||||||||||||||||||||||||
| $ | 625 | Pertamina Persero PT, 144A | 4.700% | 7/30/49 | Baa2 | $ | 664,820 | |||||||||||||||||||
| 593 | Petrobras Global Finance BV, 144A | 5.093% | 1/15/30 | Ba2 | 635,405 | |||||||||||||||||||||
| 2,200 | Petroleos Mexicanos | 6.500% | 3/13/27 | BBB+ | 2,335,784 | |||||||||||||||||||||
| 1,345 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 1,543,314 | |||||||||||||||||||||
| 1,275 | Suncor Energy Inc | 6.800% | 5/15/38 | A– | 1,812,478 | |||||||||||||||||||||
| 525 | Sunoco LP / Sunoco Finance Corp | 4.875% | 1/15/23 | BB | 536,823 | |||||||||||||||||||||
| 500 | Sunoco LP / Sunoco Finance Corp | 6.000% | 4/15/27 | BB | 533,750 | |||||||||||||||||||||
| 670 | Targa Resources Partners LP / Targa Resources Partners Finance Corp | 4.250% | 11/15/23 | BB | 676,700 | |||||||||||||||||||||
| 150 | Targa Resources Partners LP / Targa Resources Partners Finance Corp, 144A | 6.500% | 7/15/27 | BB | 164,250 | |||||||||||||||||||||
| 1,515 | WPX Energy Inc | 5.750% | 6/01/26 | BB | 1,617,262 | |||||||||||||||||||||
| 29,308 | Total Oil, Gas & Consumable Fuels | 30,894,421 | ||||||||||||||||||||||||
| Paper & Forest Products – 0.3% | ||||||||||||||||||||||||||
| 500 | Inversiones CMPC SA, 144A | 4.375% | 4/04/27 | BBB | 524,962 | |||||||||||||||||||||
| 1,500 | Suzano Austria GmbH | 5.000% | 1/15/30 | BBB– | 1,576,830 | |||||||||||||||||||||
| 2,000 | Total Paper & Forest Products | 2,101,792 | ||||||||||||||||||||||||
| Personal Products – 0.1% | ||||||||||||||||||||||||||
| 825 | First Quality Finance Co Inc, 144A | 5.000% | 7/01/25 | B+ | 858,347 | |||||||||||||||||||||
| Pharmaceuticals – 0.5% | ||||||||||||||||||||||||||
| 2,000 | AbbVie Inc, 144A | 4.250% | 11/21/49 | A– | 2,104,887 | |||||||||||||||||||||
| 1,050 | Bausch Health Americas Inc, 144A | 8.500% | 1/31/27 | B | 1,195,740 | |||||||||||||||||||||
| 350 | Bausch Health Cos Inc., 144A | 5.000% | 1/30/28 | B | 359,236 | |||||||||||||||||||||
| 3,400 | Total Pharmaceuticals | 3,659,863 | ||||||||||||||||||||||||
| Professional Services – 0.3% | ||||||||||||||||||||||||||
| 250 | ASGN Inc., 144A | 4.625% | 5/15/28 | BB– | 256,970 | |||||||||||||||||||||
| 1,635 | Verisk Analytics Inc | 4.125% | 3/15/29 | BBB+ | 1,793,196 | |||||||||||||||||||||
| 1,885 | Total Professional Services | 2,050,166 | ||||||||||||||||||||||||
| Real Estate Management & Development – 0.3% | ||||||||||||||||||||||||||
| 575 | Country Garden Holdings Co Ltd, Reg S | 4.750% | 9/28/23 | BBB– | 575,891 | |||||||||||||||||||||
| 1,500 | Hunt Cos Inc, 144A | 6.250% | 2/15/26 | BB– | 1,481,250 | |||||||||||||||||||||
| 2,075 | Total Real Estate Management & Development | 2,057,141 | ||||||||||||||||||||||||
| Road & Rail – 0.7% | ||||||||||||||||||||||||||
| 2,280 | CSX Corp | 3.800% | 11/01/46 | BBB+ | 2,383,358 | |||||||||||||||||||||
| 1,500 | Union Pacific Corp, 144A | 3.839% | 3/20/60 | A– | 1,516,072 | |||||||||||||||||||||
| 1,000 | United Rentals North America Inc | 4.875% | 1/15/28 | BB– | 1,041,230 | |||||||||||||||||||||
| 4,780 | Total Road & Rail | 4,940,660 | ||||||||||||||||||||||||
| Semiconductors & Semiconductor Equipment – 0.3% | ||||||||||||||||||||||||||
| 1,665 | Broadcom Corp / Broadcom Cayman Finance Ltd | 3.875% | 1/15/27 | BBB– | 1,727,699 | |||||||||||||||||||||
| Software – 0.1% | ||||||||||||||||||||||||||
| 925 | SS&C Technologies Inc., 144A | 5.500% | 9/30/27 | B+ | 987,438 | |||||||||||||||||||||
| Specialty Retail – 1.1% | ||||||||||||||||||||||||||
| 1,645 | Autonation Inc. | 3.800% | 11/15/27 | BBB– | 1,670,015 | |||||||||||||||||||||
| 1,500 | L Brands Inc | 6.875% | 11/01/35 | Ba2 | 1,342,500 | |||||||||||||||||||||
| 450 | Lithia Motors Inc., 144A | 4.625% | 12/15/27 | BB | 462,537 | |||||||||||||||||||||
| 1,000 | PetSmart Inc., 144A | 8.875% | 6/01/25 | CCC+ | 987,500 | |||||||||||||||||||||
| 1,250 | PGT Escrow Issuer Inc, 144A | 6.750% | 8/01/26 | B | 1,339,062 | |||||||||||||||||||||
| 1,550 | Staples Inc, 144A | 10.750% | 4/15/27 | B– | 1,573,250 | |||||||||||||||||||||
| 7,395 | Total Specialty Retail | 7,374,864 | ||||||||||||||||||||||||
| Trading Companies & Distributors – 0.6% | ||||||||||||||||||||||||||
| 515 | Ashtead Capital Inc | 4.125% | 8/15/25 | BBB– | 529,162 | |||||||||||||||||||||
| 600 | Ashtead Capital Inc, 144A | 5.250% | 8/01/26 | BBB– | 642,000 | |||||||||||||||||||||
| 325 | Beacon Roofing Supply Inc, 144A | 4.500% | 11/15/26 | BB | 334,750 | |||||||||||||||||||||
30
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| Trading Companies & Distributors(continued) | ||||||||||||||||||||||||||
| $ | 900 | Fortress Transportation & Infrastructure Investors LLC, 144A | 6.750% | 3/15/22 | BB– | $ | 938,250 | |||||||||||||||||||
| 1,000 | H&E Equipment Services Inc | 5.625% | 9/01/25 | BB– | 1,047,500 | |||||||||||||||||||||
| 3,340 | Total Trading Companies & Distributors | 3,491,662 | ||||||||||||||||||||||||
| Wireless Telecommunication Services – 0.9% | ||||||||||||||||||||||||||
| 1,400 | C&W Senior Financing DAC, 144A | 6.875% | 9/15/27 | BB– | 1,497,062 | |||||||||||||||||||||
| 1,000 | Hughes Satellite Systems Corp | 6.625% | 8/01/26 | BB | 1,110,000 | |||||||||||||||||||||
| 1,040 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 1,090,450 | |||||||||||||||||||||
| 1,350 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BB+ | 1,451,250 | |||||||||||||||||||||
| 4,790 | Total Wireless Telecommunication Services | 5,148,762 | ||||||||||||||||||||||||
| 240,294 | Total Corporate Bonds (cost $239,681,615) | 252,002,039 | ||||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED-SECURITIES – 33.7% | ||||||||||||||||||||||||||
| 2,036 | Aaset2019-1 Trust, 144A | 3.844% | 5/15/39 | A | 2,048,744 | |||||||||||||||||||||
| 1,480 | Adams Outdoor Advertising LP, 144A | 4.810% | 11/15/48 | A | 1,535,397 | |||||||||||||||||||||
| 2,199 | American Homes 4 Rent 2014-SFR2 Trust, 144A | 3.786% | 10/17/36 | Aaa | 2,295,618 | |||||||||||||||||||||
| 265 | AMSR 2019-SFR1 Trust, 144A | 3.247% | 1/19/39 | Baa2 | 260,082 | |||||||||||||||||||||
| 2,132 | Angel Oak Mortgage Trust I LLC2018-1, 144A | 4.100% | 4/27/48 | BBB | 2,137,206 | |||||||||||||||||||||
| 1,000 | Apidos CLO XXIX, 144A,(3-Month LIBOR reference rate + 1.550% spread), (4) | 3.490% | 7/25/30 | AA | 992,494 | |||||||||||||||||||||
| 610 | Apollo Aviation Securitization Equity Trust2016-2 | 4.212% | 11/15/41 | A | 610,990 | |||||||||||||||||||||
| 1,350 | Applebee’s Funding LLC / IHOP Funding LLC, 144A | 4.194% | 6/07/49 | BBB | 1,368,576 | |||||||||||||||||||||
| 2,100 | Avis Budget Rental Car Funding AESOP LLC, 144A | 4.150% | 9/20/23 | BBB | 2,145,281 | |||||||||||||||||||||
| 1,200 | Banc of America Commercial Mortgage Trust 2015-UBS7 | 4.361% | 9/15/48 | A– | 1,261,373 | |||||||||||||||||||||
| 13,993 | BANK 2019-BNK21 | 0.997% | 10/17/52 | AAA | 966,538 | |||||||||||||||||||||
| 19,592 | BANK 2019-BNK22 | 0.605% | 11/15/62 | AAA | 984,958 | |||||||||||||||||||||
| 8,475 | BANK 2019-BNK23 | 0.756% | 12/15/52 | AAA | 494,781 | |||||||||||||||||||||
| 1,000 | BANK 2019-BNK24, 144A | 2.500% | 11/15/62 | BBB | 852,365 | |||||||||||||||||||||
| 1,250 | BANK 2019-BNK24 | 2.929% | 11/15/62 | AAA | 1,284,503 | |||||||||||||||||||||
| 18,210 | BANK 2019-BNK24 | 0.768% | 11/15/62 | AAA | 996,433 | |||||||||||||||||||||
| 2,400 | BBCMS Trust2015-STP, 144A | 4.284% | 9/10/28 | BBB– | 2,409,417 | |||||||||||||||||||||
| 7,888 | Benchmark2019-B15 Mortgage Trust | 0.949% | 12/15/72 | AAA | 501,072 | |||||||||||||||||||||
| 2,500 | BX Commercial Mortgage Trust2019-XL, 144A,(1-Month LIBOR reference rate + 0.920% spread), (4) | 2.660% | 10/15/36 | Aaa | 2,502,004 | |||||||||||||||||||||
| 1,000 | BX Commercial Mortgage Trust2019-XL, 144A,(1-Month LIBOR reference rate + 1.250% spread), (4) | 2.990% | 10/15/36 | A3 | 1,001,252 | |||||||||||||||||||||
| 1,000 | BX Commercial Mortgage Trust2019-XL, 144A,(1-Month LIBOR reference rate + 1.800% spread), (4) | 3.540% | 10/15/36 | N/R | 1,000,940 | |||||||||||||||||||||
| 490 | CHL Mortgage Pass-Through Trust2005-27 | 5.500% | 12/25/35 | N/R | 464,407 | |||||||||||||||||||||
| 1,690 | Citigroup Commercial Mortgage Trust 2015-GC29 | 4.136% | 4/10/48 | A– | 1,758,525 | |||||||||||||||||||||
| 2,750 | Citigroup Commercial Mortgage Trust 2015-GC29 | 3.758% | 4/10/48 | AA– | 2,829,886 | |||||||||||||||||||||
| 19,327 | Citigroup Commercial Mortgage Trust 2019-GC43 | 0.631% | 11/10/52 | AAA | 988,997 | |||||||||||||||||||||
| 2,940 | COMM 2015-CCRE22 Mortgage Trust | 4.125% | 3/10/48 | A– | 3,070,093 | |||||||||||||||||||||
| 1,000 | COMM 2015-CCRE22 Mortgage Trust, 144A | 3.000% | 3/10/48 | BB– | 873,600 | |||||||||||||||||||||
| 3,260 | COMM 2015-CCRE26 Mortgage Trust | 4.484% | 10/10/48 | A– | 3,443,849 | |||||||||||||||||||||
| 84 | Credit Suisse First Boston Mortgage Securities Corp | 5.750% | 9/25/33 | AAA | 85,950 | |||||||||||||||||||||
| 1,413 | DB Master Finance LLC, 144A | 3.787% | 5/20/49 | BBB | 1,443,065 | |||||||||||||||||||||
| 658 | DB Master Finance LLC, 144A | 4.021% | 5/20/49 | BBB | 673,809 | |||||||||||||||||||||
| 1,927 | Diamond Resorts Owner Trust, 144A | 2.890% | 2/20/32 | AAA | 1,928,053 | |||||||||||||||||||||
| 3,606 | Domino’s Pizza Master Issuer LLC, 144A | 3.082% | 7/25/47 | BBB+ | 3,609,285 | |||||||||||||||||||||
| 750 | Dryden 50 Senior Loan Fund, 144A,(3-Month LIBOR reference rate + 6.260% spread), (4) | 8.261% | 7/15/30 | Ba3 | 733,880 | |||||||||||||||||||||
| 350 | Fannie Mae Connecticut Avenue Securities,(1-Month LIBOR reference rate + 4.250% spread), (4) | 6.042% | 4/25/29 | Aaa | 375,893 | |||||||||||||||||||||
| 5,000 | Fannie Mae Connecticut Avenue Securities,(1-Month LIBOR reference rate + 2.200% spread), (4) | 3.992% | 1/25/30 | AAA | 5,042,659 | |||||||||||||||||||||
| 5,566 | Fannie Mae Connecticut Avenue Securities Trust,(1-Month LIBOR reference rate + 3.000% spread), (4) | 4.792% | 7/25/24 | Aaa | 5,854,957 | |||||||||||||||||||||
| 12 | Fannie Mae Interest Strip | 5.000% | 9/25/24 | Aaa | 192 | |||||||||||||||||||||
| 1 | Fannie Mae Pool | 5.500% | 7/01/24 | N/R | 1,183 | |||||||||||||||||||||
| 31 | Fannie Mae Pool | 6.000% | 4/01/32 | Aaa | 33,826 | |||||||||||||||||||||
| 161 | Fannie Mae Pool | 6.000% | 3/01/34 | Aaa | 175,385 | |||||||||||||||||||||
| 1 | Fannie Mae Pool,(12-Month LIBOR reference rate + 1.875% spread), (4) | 4.875% | 12/01/36 | N/R | 884 | |||||||||||||||||||||
| 238 | Fannie Mae Pool | 6.500% | 8/01/37 | Aaa | 264,617 | |||||||||||||||||||||
| 33 | Fannie Mae Pool | 6.000% | 9/01/37 | Aaa | 36,271 | |||||||||||||||||||||
| 19 | Fannie Mae Pool,(12-Month LIBOR reference rate + 1.500% spread), (4) | 3.796% | 9/01/37 | N/R | 19,449 | |||||||||||||||||||||
| 335 | Fannie Mae Pool | 5.500% | 3/01/39 | Aaa | 377,000 | |||||||||||||||||||||
| 58 | Fannie Mae Pool | 6.000% | 9/01/39 | Aaa | 65,022 | |||||||||||||||||||||
31
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED-SECURITIES(continued) | ||||||||||||||||||||||||||
| $ | 578 | Fannie Mae Pool | 4.000% | 9/01/42 | Aaa | $ | 615,347 | |||||||||||||||||||
| 56 | Fannie Mae Pool | 5.000% | 11/01/44 | Aaa | 61,921 | |||||||||||||||||||||
| 856 | Fannie Mae Pool | 4.000% | 1/01/45 | Aaa | 911,329 | |||||||||||||||||||||
| 3,939 | Fannie Mae Pool | 3.500% | 7/01/46 | N/R | 4,162,261 | |||||||||||||||||||||
| 5,534 | Fannie Mae Pool | 3.000% | 11/01/46 | Aaa | 5,664,084 | |||||||||||||||||||||
| 1,152 | Fannie Mae Pool | 3.000% | 11/01/47 | Aaa | 1,158,235 | |||||||||||||||||||||
| 1,293 | Fannie Mae Pool | 3.500% | 11/01/47 | Aaa | 1,370,173 | |||||||||||||||||||||
| 3,699 | Fannie Mae Pool | 4.000% | 12/01/47 | Aaa | 3,957,441 | |||||||||||||||||||||
| 1,250 | Fannie Mae Pool | 4.000% | 4/01/48 | Aaa | 1,309,850 | |||||||||||||||||||||
| 8,132 | Fannie Mae Pool | 4.500% | 7/01/48 | Aaa | 8,562,364 | |||||||||||||||||||||
| 1,079 | Fannie Mae Pool | 4.000% | 9/01/48 | Aaa | 1,123,810 | |||||||||||||||||||||
| 561 | Fannie Mae Pool | 4.000% | 10/01/48 | Aaa | 583,753 | |||||||||||||||||||||
| 10,322 | Fannie Mae Pool | 3.000% | 11/01/48 | Aaa | 10,515,293 | |||||||||||||||||||||
| 321 | Fannie Mae Pool | 4.000% | 11/01/48 | Aaa | 333,907 | |||||||||||||||||||||
| 52 | Fannie Mae Pool | 4.000% | 12/01/48 | Aaa | 54,165 | |||||||||||||||||||||
| 2,752 | Fannie Mae Pool | 4.500% | 12/01/48 | Aaa | 2,895,639 | |||||||||||||||||||||
| 340 | Fannie Mae Pool | 3.000% | 8/01/49 | Aaa | 350,223 | |||||||||||||||||||||
| 4,029 | Fannie Mae Pool | 4.000% | 12/01/49 | N/R | 4,198,304 | |||||||||||||||||||||
| 461 | Fannie Mae REMICS,(1-Month LIBOR reference rate + 5.950% spread), (4) | 4.158% | 9/25/43 | Aaa | 83,831 | |||||||||||||||||||||
| 443 | Fannie Mae REMICS | 3.000% | 11/25/48 | Aaa | 62,003 | |||||||||||||||||||||
| 2,117 | Flagstar Mortgage Trust2017-2, 144A | 3.500% | 10/25/47 | Aaa | 2,127,092 | |||||||||||||||||||||
| 1,343 | Flagstar Mortgage Trust2018-4, 144A | 4.000% | 7/25/48 | Aaa | 1,343,026 | |||||||||||||||||||||
| 2,935 | FOCUS Brands Funding LLC, 144A | 5.093% | 4/30/47 | BBB | 3,083,689 | |||||||||||||||||||||
| 575 | Freddie Mac Gold Pool | 4.000% | 6/01/42 | N/R | 612,385 | |||||||||||||||||||||
| 2,919 | Freddie Mac Gold Pool | 3.500% | 8/01/45 | Aaa | 3,113,012 | |||||||||||||||||||||
| 3,262 | Freddie Mac Gold Pool | 3.500% | 10/01/45 | Aaa | 3,439,192 | |||||||||||||||||||||
| 2,659 | Freddie Mac Gold Pool | 3.500% | 2/01/47 | Aaa | 2,760,183 | |||||||||||||||||||||
| 1,030 | Freddie Mac STACR Trust 2019-HQA2, 144A,(1-Month LIBOR reference rate + 2.050% spread), (4) | 3.842% | 4/25/49 | B+ | 1,034,720 | |||||||||||||||||||||
| 401 | Freddie Mac Strips, (I/O),(1-Month LIBOR reference rate + 5.920% spread), (4) | 4.180% | 3/15/44 | N/R | 67,681 | |||||||||||||||||||||
| 2,000 | Freddie Mac Structured Agency Credit Risk Debt Notes,(1-Month LIBOR reference rate + 3.25% spread), (4) | 5.042% | 7/25/29 | Aaa | 2,101,962 | |||||||||||||||||||||
| 130 | Freddie Mac Structured Agency Credit Risk Debt Notes, 144A | 3.736% | 2/25/48 | Aaa | 130,614 | |||||||||||||||||||||
| 600 | Freddie Mac Structured Agency Credit Risk Debt Notes Trust 2018-SPI4, 144A | 4.459% | 11/25/48 | Aaa | 601,841 | |||||||||||||||||||||
| 2,465 | GS Mortgage Securities Trust 2015-GC32 | 3.345% | 7/10/48 | BBB– | 2,325,404 | |||||||||||||||||||||
| 1,500 | GS Mortgage Securities Trust 2019-GC40, 144A | 3.550% | 7/10/52 | BBB– | 1,522,187 | |||||||||||||||||||||
| 600 | GS Mortgage Securities Trust 2019-GSA1 | 3.340% | 11/10/52 | AAA | 611,738 | |||||||||||||||||||||
| 749 | GS Mortgage-Backed Securities Corp Trust2019-PJ1, 144A | 4.000% | 8/25/49 | Aa1 | 754,656 | |||||||||||||||||||||
| 2,000 | Hertz Vehicle Financing II LP, 144A | 4.260% | 5/25/25 | BBB | 2,061,563 | |||||||||||||||||||||
| 1,900 | Hilton Grand Vacations Trust2019-A, 144A | 2.340% | 7/25/33 | AAA | 1,896,682 | |||||||||||||||||||||
| 1,425 | Hilton Grand Vacations Trust2019-A, 144A | 2.840% | 7/25/33 | A– | 1,418,924 | |||||||||||||||||||||
| 2,420 | Horizon Aircraft Finance II Ltd, 144A | 3.721% | 7/15/39 | A | 2,415,680 | |||||||||||||||||||||
| 476 | Horizon Aircraft Finance II Ltd, 144A | 6.900% | 7/15/39 | BB | 483,813 | |||||||||||||||||||||
| 994 | Horizon Aircraft Finance III Ltd, 144A | 3.425% | 11/15/39 | A | 988,198 | |||||||||||||||||||||
| 1,000 | Horizon Aircraft Finance III Ltd, 144A | 4.458% | 11/15/39 | BBB | 994,259 | |||||||||||||||||||||
| 1,500 | Hudson Yards, 144A | 3.041% | 12/10/41 | N/R | 1,323,543 | |||||||||||||||||||||
| 2,000 | Hudson Yards 2019-30HY Mortgage Trust, 144A | 3.443% | 7/10/39 | BBB– | 2,004,266 | |||||||||||||||||||||
| 999 | Impac Secured Assets CMN Owner Trust | 8.000% | 10/25/30 | CCC | 1,006,272 | |||||||||||||||||||||
| 3,060 | Invitation Homes 2018-SFR2 Trust, 144A,(1-Month LIBOR reference rate + 0.900% spread), (4) | 2.640% | 6/17/37 | Aaa | 3,055,439 | |||||||||||||||||||||
| 3,359 | Invitation Homes 2018-SFR3 Trust, 144A,(1-Month LIBOR reference rate + 1.000% spread), (4) | 2.737% | 7/17/37 | Aaa | 3,359,732 | |||||||||||||||||||||
| 459 | JP Morgan Alternative Loan Trust2007-S1,(1-Month LIBOR reference rate + 0.280% spread), (4) | 2.072% | 4/25/47 | AAA | 441,826 | |||||||||||||||||||||
| 2,211 | JP Morgan Mortgage Trust2017-2, 144A | 3.500% | 5/25/47 | Aaa | 2,240,889 | |||||||||||||||||||||
| 421 | JP Morgan Mortgage Trust2018-3, 144A | 3.500% | 9/25/48 | AA+ | 430,502 | |||||||||||||||||||||
| 136 | JP Morgan Mortgage Trust2018-4, 144A | 3.500% | 10/25/48 | AA+ | 138,760 | |||||||||||||||||||||
| 558 | JP Morgan Mortgage Trust2018-5, 144A | 3.500% | 10/25/48 | AAA | 571,109 | |||||||||||||||||||||
| 1,088 | JP Morgan Mortgage Trust2018-8, 144A | 4.000% | 1/25/49 | Aaa | 1,097,494 | |||||||||||||||||||||
| 1,199 | JP Morgan Mortgage Trust2019-1, 144A | 4.000% | 5/25/49 | AAA | 1,214,568 | |||||||||||||||||||||
| 64 | JP Morgan Mortgage Trust2019-3, 144A | 4.764% | 9/25/49 | Aa3 | 68,665 | |||||||||||||||||||||
| 1,500 | JPMCC Commercial Mortgage Securities Trust2017-JP5 | 3.723% | 3/15/50 | Aaa | 1,608,359 | |||||||||||||||||||||
| 1,000 | Magnetite XV Ltd, 144A,(3-Month LIBOR reference rate + 1.800% spread), (4) | 3.740% | 7/25/31 | A2 | 972,134 | |||||||||||||||||||||
| 1,735 | MASTR Reperforming Loan Trust2005-1, 144A | 7.500% | 8/25/34 | D | 1,758,450 | |||||||||||||||||||||
| 2,053 | MVW Owner Trust, 144A | 2.680% | 10/20/38 | BBB+ | 2,036,941 | |||||||||||||||||||||
32
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED-SECURITIES(continued) | ||||||||||||||||||||||||||
| $ | 1,783 | MVW Owner Trust2019-1, 144A | 3.330% | 11/20/36 | BBB | $ | 1,801,090 | |||||||||||||||||||
| 1,000 | Myers Park CLO Ltd, 144A,(3-Month LIBOR reference rate + 1.600% spread), (4) | 3.566% | 10/20/30 | AA | 992,391 | |||||||||||||||||||||
| 2,000 | Natixis Commercial Mortgage Securities Trust 2019-1776, 144A | 3.902% | 10/15/36 | Ba3 | 1,982,059 | |||||||||||||||||||||
| 1,500 | Natixis Commercial Mortgage Securities Trust 2019-MILE, 144A,(1-Month LIBOR reference rate + 3.500% spread), (4) | 5.240% | 7/15/36 | N/R | 1,499,996 | |||||||||||||||||||||
| 1,500 | Natixis Commercial Mortgage Securities Trust 2019-MILE, 144A,(1-Month LIBOR reference rate + 4.250% spread), (4) | 5.990% | 7/15/36 | N/R | 1,499,995 | |||||||||||||||||||||
| 1,000 | Neuberger Berman Loan Advisers CLO 27 Ltd, 144A,(3-Month LIBOR reference rate + 1.400% spread), (4) | 3.401% | 1/15/30 | AA | 987,244 | |||||||||||||||||||||
| 2,000 | Neuberger Berman Loan Advisers CLO 27 Ltd, 144A,(3-Month LIBOR reference rate + 1.700% spread), (4) | 3.701% | 1/15/30 | A | 1,929,500 | |||||||||||||||||||||
| 52 | New Residential Mortgage Loan Trust2017-1, 144A | 4.000% | 2/25/57 | Aaa | 54,005 | |||||||||||||||||||||
| 2,187 | New Residential Mortgage Loan Trust2017-6, 144A | 4.000% | 8/27/57 | Aaa | 2,269,693 | |||||||||||||||||||||
| 1,625 | Octagon Investment Partners XVII Ltd, 144A, (WIDD)(3-Month LIBOR reference rate + 2.500% spread), (4) | 0.000% | 1/25/31 | BBB– | 1,494,329 | |||||||||||||||||||||
| 1,500 | One Bryant Park Trust2019-OBP, 144A | 2.516% | 9/15/54 | Aaa | 1,458,796 | |||||||||||||||||||||
| 1,446 | Pioneer Aircraft Finance Ltd, 144A | 3.967% | 6/15/44 | A | 1,456,866 | |||||||||||||||||||||
| 2,074 | Planet Fitness Master Issuer LLC, 144A | 4.262% | 9/05/48 | BBB | 2,108,216 | |||||||||||||||||||||
| 62 | RALI Series 2005-QS12 Trust | 5.500% | 8/25/35 | Caa2 | 60,018 | |||||||||||||||||||||
| 364 | Sequoia Mortgage Trust2012-4 | 3.500% | 9/25/42 | Aaa | 367,537 | |||||||||||||||||||||
| 247 | Sequoia Mortgage Trust2018-7, 144A | 4.000% | 9/25/48 | Aaa | 250,538 | |||||||||||||||||||||
| 184 | Sequoia Mortgage Trust2018-8, 144A | 4.000% | 11/25/48 | Aaa | 186,799 | |||||||||||||||||||||
| 649 | Sequoia Mortgage Trust2018-CH4, 144A | 4.500% | 10/25/48 | Aaa | 649,465 | |||||||||||||||||||||
| 72 | Sequoia Mortgage Trust2019-2, 144A | 4.000% | 6/25/49 | AAA | 72,928 | |||||||||||||||||||||
| 1,500 | SERVPRO Master Issuer LLC, 144A | 3.882% | 10/25/49 | BBB– | 1,505,520 | |||||||||||||||||||||
| 1,496 | Sesac Finance LLC, 144A | 5.216% | 7/25/49 | N/R | 1,544,728 | |||||||||||||||||||||
| 2,364 | Settlement Fee Finance2019-1 LLC, 144A | 3.840% | 11/01/49 | N/R | 2,357,259 | |||||||||||||||||||||
| 3,031 | ShellpointCo-Originator Trust2017-2, 144A | 3.500% | 10/25/47 | Aaa | 3,072,045 | |||||||||||||||||||||
| 998 | Sierra Timeshare2019-2 Receivables Funding LLC, 144A | 4.540% | 5/20/36 | BB | 1,005,016 | |||||||||||||||||||||
| 1,816 | Sierra Timeshare2019-3 Receivables Funding LLC, 144A | 4.180% | 8/20/36 | BB | 1,809,747 | |||||||||||||||||||||
| 1,091 | Sierra Timeshare Conduit Receivables Funding LLC, 144A | 3.200% | 3/20/34 | BBB | 1,096,547 | |||||||||||||||||||||
| 349 | S-Jets2017-1 Ltd, 144A | 3.967% | 8/15/42 | A | 349,190 | |||||||||||||||||||||
| 1,429 | Spruce Hill Mortgage Loan Trust2019-SH1, 144A | 3.395% | 4/29/49 | AAA | 1,436,399 | |||||||||||||||||||||
| 3,000 | STACR Trust 2018-DNA2, 144A,(1-Month LIBOR reference rate + 2.150% spread), (4) | 3.942% | 12/25/30 | B+ | 3,029,128 | |||||||||||||||||||||
| 1,420 | START Ireland Trust2019-I, 144A | 5.095% | 3/15/44 | BBB | 1,451,727 | |||||||||||||||||||||
| 1,121 | Start Ltd/Bermuda, 144A | 4.089% | 5/15/43 | A | 1,143,912 | |||||||||||||||||||||
| 2,961 | Starwood Waypoint Homes2017-1 Trust, 144A,(1-Month LIBOR reference rate + 0.950% spread), (4) | 2.690% | 1/17/35 | Aaa | 2,955,655 | |||||||||||||||||||||
| 1,804 | Taco Bell Funding LLC, 144A | 4.377% | 5/25/46 | BBB | 1,815,655 | |||||||||||||||||||||
| 743 | Taco Bell Funding LLC, 144A | 4.318% | 11/25/48 | BBB | 759,711 | |||||||||||||||||||||
| 2,000 | Tesla Auto Lease Trust2019-A, 144A | 2.130% | 4/20/22 | Aaa | 1,999,106 | |||||||||||||||||||||
| 1,440 | Tesla Auto Lease Trust2019-A, 144A | 5.480% | 5/22/23 | Ba3 | 1,444,623 | |||||||||||||||||||||
| 300 | Tricon American Homes 2016-SFR1 Trust, 144A | 4.878% | 11/17/33 | N/R | 304,663 | |||||||||||||||||||||
| 1,000 | UBS-Barclays Commercial Mortgage Trust2013-C5 | 4.082% | 3/10/46 | A3 | 1,016,368 | |||||||||||||||||||||
| 150 | Vericrest Opportunity Loan Trust 2019-NPL7, 144A | 3.967% | 10/25/49 | N/R | 149,304 | |||||||||||||||||||||
| 587 | Verus Securitization Trust2018-3, 144A | 4.108% | 10/25/58 | AAA | 592,989 | |||||||||||||||||||||
| 2,000 | Voya CLO2018-2 Ltd, 144A,(3-Month LIBOR reference rate + 1.850% spread), (4) | 3.851% | 7/15/31 | A | 1,942,120 | |||||||||||||||||||||
| 131 | Wachovia Mortgage Loan Trust LLC Series2005-B Trust | 4.253% | 10/20/35 | Aaa | 129,789 | |||||||||||||||||||||
| 101 | Washington Mutual MSC Mortgage Pass-Through Certificates Series2004-RA3 Trust | 6.128% | 8/25/38 | Aaa | 106,207 | |||||||||||||||||||||
| 2,229 | Wendy’s Funding LLC, 144A | 3.573% | 3/15/48 | BBB | 2,252,798 | |||||||||||||||||||||
| 2,630 | WFRBS Commercial Mortgage Trust2011-C3, 144A | 5.335% | 3/15/44 | A1 | 2,700,261 | |||||||||||||||||||||
| $ | 308,007 | Total Asset-Backed Securities (cost $226,195,517) | 228,084,076 | |||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 7.3% | ||||||||||||||||||||||||||
| $ | 1,270 | U.S. Treasury Bonds | 2.875% | 5/15/49 | Aaa | $ | 1,398,252 | |||||||||||||||||||
| 13,175 | U.S. Treasury Bonds | 2.250% | 8/15/49 | Aaa | 12,765,339 | |||||||||||||||||||||
| 920 | U.S. Treasury Notes | 1.750% | 7/31/21 | Aaa | 922,041 | |||||||||||||||||||||
| 4,125 | U.S. Treasury Notes | 2.250% | 4/30/24 | Aaa | 4,220,590 | |||||||||||||||||||||
| 7,500 | U.S. Treasury Notes | 1.750% | 6/30/24 | Aaa | 7,516,849 | |||||||||||||||||||||
| 18,000 | U.S. Treasury Notes | 1.375% | 8/31/26 | Aaa | 17,489,505 | |||||||||||||||||||||
33
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS(continued) |
| |||||||||||||||||||||||||||||
| $ | 830 | U.S. Treasury Notes | 2.625% | 2/15/29 | Aaa | $ | 878,996 | |||||||||||||||||||||||
| 1,230 | U.S. Treasury Notes |
| 2.375% | 5/15/29 | Aaa | 1,277,448 | ||||||||||||||||||||||||
| 2,615 | U.S. Treasury Notes |
| 1.750% | 11/15/29 | N/R | 2,573,477 | ||||||||||||||||||||||||
| $ | 49,665 | Total U.S. Government and Agency Obligations (cost $49,716,820) |
| 49,042,497 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||||
| VARIABLE RATE SENIOR LOAN INTERESTS – 6.5% | ||||||||||||||||||||||||||||||
| Aerospace & Defense – 0.4% | ||||||||||||||||||||||||||||||
| $ | 2,481 | Transdigm, Inc., Term Loan E | 4.299% | 1-Month LIBOR | 2.500% | 5/30/25 | Ba3 | $ | 2,491,827 | |||||||||||||||||||||
| Building Products – 0.3% | ||||||||||||||||||||||||||||||
| 2,000 | Quikrete Holdings, Inc., Term Loan B | 4.549% | 1-Month LIBOR | 2.750% | 11/15/23 | BB– | 2,011,600 | |||||||||||||||||||||||
| Chemicals – 1.0% | ||||||||||||||||||||||||||||||
| 2,481 | Messer Industries GmbH, Term Loan | 4.445% | 3-Month LIBOR | 2.500% | 3/01/26 | BB– | 2,497,961 | |||||||||||||||||||||||
| 2,474 | PolyOne Corp, Term Loan | 3.495% | 1-Month LIBOR | 1.750% | 1/30/26 | BB+ | 2,485,448 | |||||||||||||||||||||||
| 2,122 | PQ Corporation, Term Loan B | 4.427% | 3-Month LIBOR | 2.500% | 2/08/25 | BB– | 2,137,181 | |||||||||||||||||||||||
| 7,077 | Total Chemicals |
| 7,120,590 | |||||||||||||||||||||||||||
| Commercial Services & Supplies – 1.5% | ||||||||||||||||||||||||||||||
| 2,480 | ADS Waste Holdings, Inc., Term Loan B | 3.853% | 1-Week LIBOR | 2.250% | 11/10/23 | BB+ | 2,491,992 | |||||||||||||||||||||||
| 1,700 | Dun & Bradstreet Corp., Initial Term Loan | 6.792% | 1-Month LIBOR | 5.000% | 2/08/26 | BB | 1,717,000 | |||||||||||||||||||||||
| 1,905 | Filtration Group, Term Loan B | 4.799% | 1-Month LIBOR | 3.000% | 3/28/25 | B | 1,915,206 | |||||||||||||||||||||||
| 1,484 | Granite Acquisition Inc., Term Loan B | 5.445% | 3-Month LIBOR | 3.500% | 12/17/21 | B+ | 1,492,605 | |||||||||||||||||||||||
| 1,485 | Packers Holdings LLC, 2017 Term Loan B | 4.987% | 1-Month LIBOR | 3.250% | 12/04/24 | B+ | 1,488,561 | |||||||||||||||||||||||
| 500 | Prime Security Services Borrower LLC, Term Loan, (WI/DD) | TBD | TBD | TBD | TBD | BB– | 502,157 | |||||||||||||||||||||||
| 500 | Prometric Holdings Inc., (WI/DD) | TBD | TBD | TBD | TBD | B1 | 500,312 | |||||||||||||||||||||||
| 10,054 | Total Commercial Services & Supplies |
| 10,107,833 | |||||||||||||||||||||||||||
| Communications Equipment – 0.1% | ||||||||||||||||||||||||||||||
| 500 | Webcom Group Inc., Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B+ | 500,323 | |||||||||||||||||||||||
| Containers & Packaging – 0.0% | ||||||||||||||||||||||||||||||
| 199 | Tank Holdings Corp., 2019 Term Loan B | 5.745% | 1-Month LIBOR | 4.000% | 3/26/26 | B | 200,547 | |||||||||||||||||||||||
| Food Products – 0.3% | ||||||||||||||||||||||||||||||
| 1,780 | Hostess Brands LLC, Term Loan | 4.177% | 1-Month LIBOR | 2.250% | 8/03/22 | N/R | 1,789,848 | |||||||||||||||||||||||
| Health Care Providers & Services – 1.1% | ||||||||||||||||||||||||||||||
| 1,683 | Kindred at Home Hospice, Term Loan B | 5.563% | 1-Month LIBOR | 3.750% | 7/02/25 | B1 | 1,694,006 | |||||||||||||||||||||||
| 1,985 | Lifepoint Health, Inc., Term Loan | 6.202% | 1-Month LIBOR | 4.500% | 11/16/25 | B+ | 2,003,610 | |||||||||||||||||||||||
| 2,481 | Pharmaceutical Product Development, Inc., Term Loan B | 4.299% | 1-Month LIBOR | 2.500% | 8/18/22 | Ba3 | 2,497,202 | |||||||||||||||||||||||
| 1,523 | Select Medical Corporation, Term Loan B | 4.580% | 6-Month LIBOR | 2.500% | 3/06/25 | Ba2 | 1,528,258 | |||||||||||||||||||||||
| 7,672 | Total Health Care Providers & Services |
| 7,723,076 | |||||||||||||||||||||||||||
| Hotels, Restaurants & Leisure – 0.1% | ||||||||||||||||||||||||||||||
| 500 | Scientific Games Corp., Initial Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B1 | 502,050 | |||||||||||||||||||||||
| Insurance – 0.1% | ||||||||||||||||||||||||||||||
| 500 | Hub International Holdings Inc., TermLoan B | 5.903% | 3-Month LIBOR | 4.000% | 4/25/25 | B | 505,690 | |||||||||||||||||||||||
| Internet Software & Services – 0.0% | ||||||||||||||||||||||||||||||
| 325 | Thomson Reuters IP & S, Term Loan B | 5.049% | 1-Month LIBOR | 3.250% | 10/31/26 | B | 327,519 | |||||||||||||||||||||||
34
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||||
| IT Services – 0.3% | ||||||||||||||||||||||||||||||
| $ | 1,985 | NeuStar Inc., Term Loan B | 6.299% | 1-Month LIBOR | 4.500% | 8/08/24 | B+ | $ | 1,894,018 | |||||||||||||||||||||
| Pharmaceuticals – 0.3% | ||||||||||||||||||||||||||||||
| 1,489 | Endo International PLC., Term Loan B | 6.063% | 1-Month LIBOR | 4.250% | 4/29/24 | B+ | 1,429,257 | |||||||||||||||||||||||
| 893 | Valeant Pharmaceuticals International, Inc., Term Loan, First Lien | 4.740% | 1-Month LIBOR | 3.000% | 6/02/25 | BB | 899,585 | |||||||||||||||||||||||
| 2,382 | Total Pharmaceuticals |
| 2,328,842 | |||||||||||||||||||||||||||
| Semiconductors & Semiconductor Equipment – 0.2% | ||||||||||||||||||||||||||||||
| 1,035 | Ultra Clean Holdings Inc., Term Loan B | 6.299% | 1-Month LIBOR | 4.500% | 8/27/25 | B+ | 1,036,981 | |||||||||||||||||||||||
| Software – 0.1% | ||||||||||||||||||||||||||||||
| 994 | Infor (US), Inc., Term Loan B | 4.695% | 3-Month LIBOR | 2.750% | 2/01/22 | Ba3 | 999,874 | |||||||||||||||||||||||
| Specialty Retail – 0.4% | ||||||||||||||||||||||||||||||
| 496 | Petsmart Inc., Term Loan B, First Lien | 4.740% | 1-Month LIBOR | 3.000% | 3/11/22 | B | 491,788 | |||||||||||||||||||||||
| 1,990 | Staples Inc., Term Loan | 6.691% | 1-Month LIBOR | 5.000% | 4/12/26 | B+ | 1,960,279 | |||||||||||||||||||||||
| 2,486 | Total Specialty Retail |
| 2,452,067 | |||||||||||||||||||||||||||
| Textiles, Apparel & Luxury Goods – 0.2% | ||||||||||||||||||||||||||||||
| 1,692 | Samsonite IP Holdings Sarl, Term Loan B | 3.549% | 1-Month LIBOR | 1.750% | 4/25/25 | Ba1 | 1,688,611 | |||||||||||||||||||||||
| Trading Companies & Distributors – 0.1% | ||||||||||||||||||||||||||||||
| 494 | Univar, Inc., Term Loan B | 4.049% | 1-Month LIBOR | 2.250% | 7/01/24 | BB+ | 496,303 | |||||||||||||||||||||||
| $ | 44,156 | Total Variable Rate Senior Loan Interests (cost $43,737,928) |
| 44,177,599 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 5.0% |
| |||||||||||||||||||||||||||||
| Automobiles – 0.4% | ||||||||||||||||||||||||||||||
| $ | 2,470 | General Motors Financial Co Inc, (3) |
| 5.750% | N/A (7) | BB+ | $ | 2,513,225 | ||||||||||||||||||||||
| Banks – 3.0% | ||||||||||||||||||||||||||||||
| 1,195 | Bank of America Corp | 6.300% | N/A (7) | BBB– | 1,380,225 | |||||||||||||||||||||||||
| 1,530 | Bank of America Corp |
| 6.100% | N/A (7) | BBB– | 1,704,114 | ||||||||||||||||||||||||
| 2,000 | Citigroup Inc |
| 5.000% | N/A (7) | BB+ | 2,095,000 | ||||||||||||||||||||||||
| 2,000 | CoBank ACB |
| 6.250% | N/A (7) | BBB+ | 2,200,000 | ||||||||||||||||||||||||
| 3,355 | JPMorgan Chase & Co |
| 5.000% | N/A (7) | Baa2 | 3,489,200 | ||||||||||||||||||||||||
| 2,797 | KeyCorp |
| 5.000% | N/A (7) | Baa3 | 2,972,204 | ||||||||||||||||||||||||
| 1,000 | M&T Bank Corp |
| 5.125% | N/A (7) | Baa2 | 1,083,750 | ||||||||||||||||||||||||
| 3,000 | Truist Financial Corp |
| 4.800% | N/A (7) | Baa2 | 3,097,500 | ||||||||||||||||||||||||
| 2,570 | Truist Financial Corp |
| 5.050% | N/A (7) | BBB– | 2,621,400 | ||||||||||||||||||||||||
| 19,447 | Total Banks |
| 20,643,393 | |||||||||||||||||||||||||||
| Capital Markets – 0.4% | ||||||||||||||||||||||||||||||
| 2,840 | Goldman Sachs Group Inc, (3) |
| 5.500% | N/A (7) | Ba1 | 3,038,800 | ||||||||||||||||||||||||
| Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||||
| 1,710 | Voya Financial Inc, (3) |
| 6.125% | N/A (7) | BBB– | 1,838,250 | ||||||||||||||||||||||||
| Food Products – 0.4% | ||||||||||||||||||||||||||||||
| 2,780 | Land O’ Lakes Inc |
| 8.000% | N/A (7) | BB | 2,807,800 | ||||||||||||||||||||||||
35
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
| Wireless Telecommunication Services – 0.5% | ||||||||||||||||||||||||||||||
| $ | 1,500 | Network i2i Ltd, 144A | 5.650% | N/A (7) | BB | $ | 1,482,000 | |||||||||||||||||||||||
| 1,500 | Vodafone Group PLC |
| 7.000% | 4/04/79 | BB+ | 1,760,020 | ||||||||||||||||||||||||
| 3,000 | Total Wireless Telecommunication Services |
| 3,242,020 | |||||||||||||||||||||||||||
| $ | 32,247 | Total $1,000 Par (or similar) Institutional Preferred (cost $32,325,292) |
| 34,083,488 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 4.3% (8) |
| |||||||||||||||||||||||||||||
| Banks – 3.6% | ||||||||||||||||||||||||||||||
| $ | 1,030 | Australia & New Zealand Banking Group Ltd/United Kingdom, 144A |
| 6.750% | 12/15/68 | Baa2 | $ | 1,175,487 | ||||||||||||||||||||||
| 1,400 | Banco Bilbao Vizcaya Argentaria SA |
| 6.500% | 12/05/68 | Ba2 | 1,480,500 | ||||||||||||||||||||||||
| 1,180 | Banco Mercantil del Norte SA/Grand Cayman, 144A |
| 6.750% | 9/27/68 | BB | 1,225,737 | ||||||||||||||||||||||||
| 675 | Bancolombia SA | 4.625% | 12/18/29 | BB+ | 684,281 | |||||||||||||||||||||||||
| 2,000 | Barclays PLC |
| 7.750% | 12/15/68 | BB+ | 2,185,000 | ||||||||||||||||||||||||
| 2,500 | BNP Paribas SA, 144A, (3) |
| 6.625% | 9/25/68 | BBB– | 2,700,000 | ||||||||||||||||||||||||
| 2,000 | Credit Agricole SA, 144A |
| 8.125% | 3/23/68 | BBB– | 2,425,000 | ||||||||||||||||||||||||
| 1,195 | Intesa Sanpaolo SpA, 144A |
| 7.700% | 3/17/68 | BB– | 1,295,081 | ||||||||||||||||||||||||
| 1,500 | Lloyds Banking Group PLC |
| 7.500% | 6/27/68 | Baa3 | 1,657,500 | ||||||||||||||||||||||||
| 2,000 | Macquarie Bank Ltd/London, 144A |
| 6.125% | 9/08/68 | BB+ | 2,070,000 | ||||||||||||||||||||||||
| 3,020 | Societe Generale SA, 144A |
| 6.750% | N/A | BB+ | 3,333,325 | ||||||||||||||||||||||||
| 1,880 | Standard Chartered PLC, 144A |
| 7.500% | 4/02/68 | Ba1 | 2,023,350 | ||||||||||||||||||||||||
| 1,000 | UBS Group AG, 144A |
| 7.000% | 7/31/68 | BBB– | 1,092,500 | ||||||||||||||||||||||||
| 950 | UniCredit SpA, Reg S |
| 8.000% | 6/03/68 | B+ | 1,035,500 | ||||||||||||||||||||||||
| 22,330 | Total Banks |
| 24,383,261 | |||||||||||||||||||||||||||
| Capital Markets – 0.7% | ||||||||||||||||||||||||||||||
| 2,000 | Credit Suisse Group AG, 144A |
| 6.375% | 2/21/68 | Ba2 | 2,156,000 | ||||||||||||||||||||||||
| 2,000 | Credit Suisse Group AG, 144A |
| 7.500% | 6/11/68 | BB | 2,247,500 | ||||||||||||||||||||||||
| 4,000 | Total Capital Markets |
| 4,403,500 | |||||||||||||||||||||||||||
| $ | 26,330 | Total Contingent Capital Securities (cost $26,493,828) |
| 28,786,761 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||||
SOVEREIGN DEBT – 2.4% |
| |||||||||||||||||||||||||||||
| Bermuda – 0.1% | ||||||||||||||||||||||||||||||
| $ | 850 | Bermuda Government International Bond, 144A |
| 3.717% | 1/25/27 | A+ | $ | 892,509 | ||||||||||||||||||||||
| Colombia – 0.1% | ||||||||||||||||||||||||||||||
| 850 | Colombia Government International Bond |
| 5.000% | 6/15/45 | Baa2 | 987,275 | ||||||||||||||||||||||||
| Dominican Republic – 0.2% | ||||||||||||||||||||||||||||||
| 1,000 | Dominican Republic International Bond, 144A |
| 6.875% | 1/29/26 | BB– | 1,141,260 | ||||||||||||||||||||||||
| Egypt – 0.7% | ||||||||||||||||||||||||||||||
| 3,175 | Egypt Government International Bond, 144A |
| 5.577% | 2/21/23 | B+ | 3,320,675 | ||||||||||||||||||||||||
| 1,225 | Egypt Government International Bond, 144A |
| 7.053% | 1/15/32 | B+ | 1,283,457 | ||||||||||||||||||||||||
| 4,400 | Total Egypt |
| 4,604,132 | |||||||||||||||||||||||||||
| Ghana – 0.3% | ||||||||||||||||||||||||||||||
| 2,200 | Ghana Government International Bond, 144A |
| 8.125% | 3/26/32 | B | 2,238,733 | ||||||||||||||||||||||||
| Indonesia – 0.1% | ||||||||||||||||||||||||||||||
| 850 | Perusahaan Penerbit SBSN Indonesia III, 144A |
| 4.400% | 3/01/28 | BBB | 928,234 | ||||||||||||||||||||||||
| Kazakhstan – 0.2% | ||||||||||||||||||||||||||||||
| 850 | Kazakhstan Government International Bond, 144A |
| 4.875% | 10/14/44 | BBB | 1,049,104 | ||||||||||||||||||||||||
36
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Kenya – 0.2% | ||||||||||||||||||||||||||||
| $ | 1,000 | Kenya Government International Bond, 144A |
| 7.000% | 5/22/27 | B+ | $ | 1,064,094 | ||||||||||||||||||||
| Mexico – 0.1% | ||||||||||||||||||||||||||||
| 850 | Mexico Government International Bond |
| 3.750% | 1/11/28 | A3 | 883,150 | ||||||||||||||||||||||
| Morocco – 0.2% | ||||||||||||||||||||||||||||
| 850 | Morocco Government International Bond, 144A |
| 5.500% | 12/11/42 | BBB– | 1,040,919 | ||||||||||||||||||||||
| Qatar – 0.2% | ||||||||||||||||||||||||||||
| 850 | Qatar Government International Bond, 144A |
| 4.817% | 3/14/49 | AA– | 1,051,875 | ||||||||||||||||||||||
| $ | 14,550 | Total Sovereign Debt (cost $14,811,283) |
| 15,881,285 | ||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Optional Call Provisions (9) | Ratings (2) | Value | ||||||||||||||||||||||||
MUNICIPAL BONDS – 1.4% |
| |||||||||||||||||||||||||||
| Massachusetts – 0.4% | ||||||||||||||||||||||||||||
Massachusetts Water Resources Authority, General Revenue Bonds, Green Series 2019F: |
| |||||||||||||||||||||||||||
| $ | 1,300 | 2.453%, 8/01/31 |
| 8/29 at 100.00 | AA+ | $ | 1,263,093 | |||||||||||||||||||||
| 1,300 | 2.553%, 8/01/32 |
| 8/29 at 100.00 | AA+ | 1,268,826 | |||||||||||||||||||||||
| 2,600 | Total Massachusetts |
| 2,531,919 | |||||||||||||||||||||||||
| Michigan – 0.2% | ||||||||||||||||||||||||||||
| 1,500 | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Distributable State Aid First Lien LTGO Local Project, Refunding Taxable Series 2016C-1, 2.244%, 11/01/22 |
| No Opt. Call | Aa2 | 1,506,840 | |||||||||||||||||||||||
| New York – 0.2% | ||||||||||||||||||||||||||||
| 1,500 | New York City, New York, General Obligation Bonds, Fiscal 2020 Taxable Series A–2, 2.280%, 8/01/25 |
| No Opt. Call | Aa1 | 1,500,435 | |||||||||||||||||||||||
| Ohio – 0.4% | ||||||||||||||||||||||||||||
Cleveland, Ohio, Airport System Revenue Bonds, Taxable Series 2019A: |
| |||||||||||||||||||||||||||
| 1,000 | 2.492%, 1/01/25 |
| No Opt. Call | A | 1,001,740 | |||||||||||||||||||||||
| 1,500 | 2.832%, 1/01/30 |
| No Opt. Call | A | 1,488,390 | |||||||||||||||||||||||
| 2,500 | Total Ohio |
| 2,490,130 | |||||||||||||||||||||||||
| Oregon – 0.2% | ||||||||||||||||||||||||||||
| 1,468 | Oregon State Local Governments, Limited Tax Pension Obligation Bonds, Taxable Series 2005, 4.859%, 6/01/20 – AMBAC Insured |
| No Opt. Call | Aa3 | 1,485,219 | |||||||||||||||||||||||
| $ | 9,568 | Total Municipal Bonds (cost $9,574,244) |
| 9,514,543 | ||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Ratings | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.6% | ||||||||||||||||||||||||||||
| Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||
| 20,600 | AgriBank FCB, (10) |
| 6.875% | BBB+ | $ | 2,214,500 | ||||||||||||||||||||||
| Insurance – 0.3% | ||||||||||||||||||||||||||||
| 70,000 | Enstar Group Ltd |
| 7.000% | BB+ | 1,954,400 | |||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $3,810,000) |
| 4,168,900 | ||||||||||||||||||||||||||
Total Long-Term Investments (cost $646,346,527) |
| 665,741,188 | ||||||||||||||||||||||||||
37
| Nuveen Strategic Income Fund(continued) |
| Portfolio of Investments December 31, 2019 |
| (Unaudited) |
| Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||||
| INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.3% | ||||||||||||||||||||||||||||||
| Money Market Funds – 1.3% | ||||||||||||||||||||||||||||||
| 8,942,074 | First American Government Obligations Fund, Class X, (11) |
| 1.513% (12) | $ | 8,942,074 | |||||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $8,942,074) |
| 8,942,074 | ||||||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 1.1% | ||||||||||||||||||||||||||||||
| MONEY MARKET FUNDS – 1.1% | ||||||||||||||||||||||||||||||
| 7,242,520 | First American Treasury Obligation Fund, Class Z |
| 1.488% (12) | $ | 7,242,520 | |||||||||||||||||||||||||
Total Short-Term Investments (cost $7,242,520) |
| 7,242,520 | ||||||||||||||||||||||||||||
Total Investments (cost $662,531,121) – 100.8% |
| 681,925,782 | ||||||||||||||||||||||||||||
Other Assets Less Liabilities – (0.8)% (13) |
| (5,139,802 | ) | |||||||||||||||||||||||||||
Net Assets – 100% |
| $ | 676,785,980 | |||||||||||||||||||||||||||
Investments in Derivatives
Credit Default Swaps – OTC Cleared
| Referenced Entity | Buy/Sell Protection (14) | Current Credit Spread (15) | Notional Amount | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Maturity Date | Value | Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ Payable | ||||||||||||||||||||||||||||||
CDX.NA.HY.33 | Buy | 3.293 | % | $ | 29,700,000 | 5.000 | % | Quarterly | 12/20/24 | $ | (2,882,841 | ) | $ | (2,099,463 | ) | $ | (783,378 | ) | $ | 15,287 | ||||||||||||||||||||
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 | (131 | ) | 3/20 | $ | (15,610,175 | ) | $ | (15,537,828 | ) | $ | 72,347 | $ | 3,070 | ||||||||||||||
U.S. Treasury10-Year Note | Short | (47 | ) | 3/20 | (6,100,339 | ) | (6,035,828 | ) | 64,511 | 5,141 | ||||||||||||||||||
U.S. Treasury Long Bond | Long | 111 | 3/20 | 17,662,293 | 17,305,594 | (356,699 | ) | (38,156 | ) | |||||||||||||||||||
U.S. Treasury Ultra10-Year Note | Short | (136 | ) | 3/20 | (19,424,351 | ) | (19,135,625 | ) | 288,726 | 23,375 | ||||||||||||||||||
U.S. Treasury Ultra Bond | Long | 160 | 3/20 | 29,900,518 | 29,065,000 | (835,518 | ) | (185,000 | ) | |||||||||||||||||||
Total | $ | 6,427,946 | $ | 5,661,313 | $ | (766,633 | ) | $ | (191,570 | ) | ||||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 31,586 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (223,156 | ) | ||||||||||||||||||||||||
38
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 applicable to common shares unless otherwise noted. |
| (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 $8,595,831 |
| (4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
| (5) | 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. |
| (6) | Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
| (7) | Perpetual security. Maturity date is not applicable. |
| (8) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. |
| (9) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (10) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information. |
| (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 4 – 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. |
| (13) | 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 cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. |
| (14) | The Fund entered into the credit default swaps to gain investment exposure to the referenced entity. Selling protection has a similar credit risk position to owning the referenced entity. Buying protection has a similar credit risk position to selling the referenced entity short. |
| (15) | The credit spread generally serves as an indication of the current status of the payment/performance risk and therefore the likelihood of default of the credit derivative. The credit spread also reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into a credit default swap contract. Higher credit spreads are indicative of higher likelihood of performance by the seller of protection. |
| 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. |
| I/O | Interest only security |
| 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. |
| TBD | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date. |
| WI/DD | Purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
39
Statement of Assets and Liabilities
December 31, 2019
(Unaudited)
| High Income Bond | Strategic Income | |||||||
Assets | ||||||||
Long-term investments, at value (cost $233,798,874 and $646,346,527, respectively) | $ | 241,491,017 | $ | 665,741,188 | ||||
Investments purchased with collateral from securities lending, at value (cost approximates value) | 14,714,943 | 8,942,074 | ||||||
Short-term investments, at value (cost approximates value) | 32,477,526 | 7,242,520 | ||||||
Cash | — | 21,224 | ||||||
Cash collateral at brokers for investments in futures contracts(1) | — | 793,000 | ||||||
Cash collateral at brokers for investments in swaps(1) | — | 3,052,224 | ||||||
Cash denominated in foreign currencies (cost $38 and $—, respectively) | 38 | — | ||||||
Credit default swap premiums paid | 1,292,111 | — | ||||||
Receivable for: | ||||||||
Dividends | — | 35,407 | ||||||
Due from broker | — | 6,304 | ||||||
Interest | 3,497,113 | 5,613,447 | ||||||
Investments sold | — | 4,261 | ||||||
Shares sold | 280,476 | 996,483 | ||||||
Variation margin on futures contracts | — | 31,586 | ||||||
Variation margin on swap contracts | — | 15,287 | ||||||
Other assets | 74,016 | 106,654 | ||||||
Total assets | 293,827,240 | 692,601,659 | ||||||
Liabilities | ||||||||
Credit default swaps premiums received | — | 2,099,463 | ||||||
Payable for: | ||||||||
Collateral from securities lending program | 14,714,943 | 8,942,074 | ||||||
Dividends | 90,585 | 667,383 | ||||||
Due to broker | 331,663 | — | ||||||
Interest | — | 12,631 | ||||||
Investments purchased – when issued/delayed-delivery settlement | 297,000 | 2,502,500 | ||||||
Shares redeemed | 767,752 | 703,292 | ||||||
Variation margin on futures contracts | — | 223,156 | ||||||
Variation margin on swap contracts | 9,954 | — | ||||||
Accrued expenses: | ||||||||
Management fees | 144,440 | 231,168 | ||||||
Directors fees | 40,437 | 61,257 | ||||||
12b-1 distribution and service fees | 54,630 | 67,375 | ||||||
Other | 141,942 | 305,380 | ||||||
Total liabilities | 16,593,346 | 15,815,679 | ||||||
Net assets | $ | 277,233,894 | $ | 676,785,980 | ||||
| (1) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
40
| High Income Bond | Strategic Income | |||||||
Class A Shares | ||||||||
Net assets | $ | 132,303,663 | $ | 160,776,330 | ||||
Shares outstanding | 17,442,350 | 14,894,850 | ||||||
Net asset value (“NAV”) per share | $ | 7.59 | $ | 10.79 | ||||
Offering price per share (NAV per share plus maximum sales charge of 4.75% and 4.25%, respectively, of offering price) | $ | 7.97 | $ | 11.27 | ||||
Class C Shares | ||||||||
Net assets | $ | 31,905,022 | $ | 38,097,962 | ||||
Shares outstanding | 4,211,574 | 3,547,721 | ||||||
NAV and offering price per share | $ | 7.58 | $ | 10.74 | ||||
Class R3 Shares | ||||||||
Net assets | $ | 307,816 | $ | 2,444,306 | ||||
Shares outstanding | 39,712 | 225,675 | ||||||
NAV and offering price per share | $ | 7.75 | $ | 10.83 | ||||
Class R6 Shares | ||||||||
Net assets | $ | — | $ | 70,611,320 | ||||
Shares outstanding | — | 6,516,078 | ||||||
NAV and offering price per share | $ | — | $ | 10.84 | ||||
Class I Shares | ||||||||
Net assets | $ | 112,717,393 | $ | 404,856,062 | ||||
Shares outstanding | 14,809,035 | 37,504,167 | ||||||
NAV and offering price per share | $ | 7.61 | $ | 10.79 | ||||
Fund level net assets consist of: | ||||||||
Capital paid-in | $ | 398,984,904 | $ | 712,297,229 | ||||
Total distributable earnings | (121,751,010 | ) | (35,511,249 | ) | ||||
Fund level net assets | $ | 277,233,894 | $ | 676,785,980 | ||||
Authorized shares – per class | 2 billion | 2 billion | ||||||
Par value per share | 0.0001 | 0.0001 | ||||||
See accompanying notes to financial statements.
41
Six Months Ended December 31, 2019
(Unaudited)
| High Income Bond | Strategic Income | |||||||
Investment Income | ||||||||
Dividend income | $ | 7,633,255 | $ | 13,068,467 | ||||
Interest income | 37,573 | 29,477 | ||||||
Securities lending income | 460,233 | 132,065 | ||||||
Total investment income | 8,131,061 | 13,230,009 | ||||||
Expenses | ||||||||
Management fees | 787,455 | 1,722,652 | ||||||
12b-1 service fees – Class A Shares | 161,678 | 164,863 | ||||||
12b-1 distribution and service fees – Class C Shares | 170,773 | 201,534 | ||||||
12b-1 distribution and service fees – Class R3 Shares | 755 | 7,006 | ||||||
Shareholder servicing agent fees | 105,460 | 257,298 | ||||||
Custodian fees | 57,774 | 113,139 | ||||||
Directors fees | 3,262 | 8,416 | ||||||
Professional fees | 35,369 | 41,359 | ||||||
Shareholder reporting expenses | 17,536 | 35,774 | ||||||
Federal and state registration fees | 39,910 | 49,317 | ||||||
Other | 9,997 | 9,539 | ||||||
Total expenses before fee waiver/expense reimbursement | 1,389,969 | 2,610,897 | ||||||
Fee waiver/expense reimbursement | (59,317 | ) | (379,061 | ) | ||||
Net expenses | 1,330,652 | 2,231,836 | ||||||
Net investment income (loss) | 6,800,409 | 10,998,173 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | (1,124,845 | ) | 4,222,184 | |||||
Futures contracts | — | 3,158,070 | ||||||
Swaps | (57,826 | ) | 710,762 | |||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | 6,056,958 | 5,639,622 | ||||||
Futures contracts | — | (1,550,238 | ) | |||||
Swaps | 612,798 | (540,560 | ) | |||||
Net realized and unrealized gain (loss) | 5,487,085 | 11,639,840 | ||||||
Net increase (decrease) in net assets from operations | $ | 12,287,494 | $ | 22,638,013 | ||||
See accompanying notes to financial statements.
42
Statement of Changes in Net Assets
(Unaudited)
High Income Bond | Strategic Income | |||||||||||||||||||
Six Month 12/31/19 | Year Ended 6/30/19 | Six Month 12/31/19 | Year Ended 6/30/19 | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 6,800,409 | $ | 17,868,517 | $ | 10,998,173 | $ | 25,035,511 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | (1,124,845 | ) | (20,215,073 | ) | 4,222,184 | (9,877,394 | ) | |||||||||||||
Forward foreign currency contracts | — | (5,032 | ) | — | 1,216,818 | |||||||||||||||
Futures contracts | — | (23,672 | ) | 3,158,070 | 3,038,432 | |||||||||||||||
Swaps | (57,826 | ) | (653,663 | ) | 710,762 | (2,961,696 | ) | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | 6,056,958 | 19,540,305 | 5,639,622 | 29,005,871 | ||||||||||||||||
Forward foreign currency contracts | — | 4,044 | — | (273,576 | ) | |||||||||||||||
Futures contracts | — | (9,710 | ) | (1,550,238 | ) | (267,668 | ) | |||||||||||||
Swaps | 612,798 | 25,642 | (540,560 | ) | 306,212 | |||||||||||||||
Net increase (decrease) in net assets from operations | 12,287,494 | 16,531,358 | 22,638,013 | 45,222,510 | ||||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
Dividends | ||||||||||||||||||||
Class A Shares | (3,781,823 | ) | (8,619,031 | ) | (2,388,617 | ) | (3,158,669 | ) | ||||||||||||
Class C Shares | (879,767 | ) | (2,145,516 | ) | (573,082 | ) | (1,340,031 | ) | ||||||||||||
Class R3 Shares | (8,424 | ) | (26,455 | ) | (47,337 | ) | (140,232 | ) | ||||||||||||
Class R6 Shares | — | — | (1,266,398 | ) | (1,664,530 | ) | ||||||||||||||
Class I Shares | (3,074,914 | ) | (8,246,406 | ) | (7,676,153 | ) | (15,894,859 | ) | ||||||||||||
Decrease in net assets from distributions to shareholders | (7,744,928 | ) | (19,037,408 | ) | (11,951,587 | ) | (22,198,321 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 89,518,669 | 241,052,827 | 165,426,426 | 108,017,741 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 7,004,060 | 16,637,176 | 7,970,335 | 13,540,440 | ||||||||||||||||
| 96,522,729 | 257,690,003 | 173,396,761 | 121,558,181 | |||||||||||||||||
Cost of shares redeemed | (113,016,316 | ) | (273,769,766 | ) | (89,382,687 | ) | (274,492,861 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | (16,493,587 | ) | (16,079,763 | ) | 84,014,074 | (152,934,680 | ) | |||||||||||||
Net increase (decrease) in net assets | (11,951,021 | ) | (18,585,813 | ) | 94,700,500 | (129,910,491 | ) | |||||||||||||
Net assets at the beginning of period | 289,184,915 | 307,770,728 | 582,085,480 | 711,995,971 | ||||||||||||||||
Net assets at the end of period | $ | 277,233,894 | $ | 289,184,915 | $ | 676,785,980 | $ | 582,085,480 | ||||||||||||
See accompanying notes to financial statements.
43
(Unaudited)
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 NAV | ||||||||||||||||||||||||||||
Class A (8/01) | ||||||||||||||||||||||||||||||||||||
2020(e) | $ | 7.44 | $ | 0.19 | $ | 0.18 | $ | 0.37 | $ | (0.22 | ) | $ | — | $ | (0.22 | ) | $ | 7.59 | ||||||||||||||||||
2019 | 7.51 | 0.46 | (0.04 | ) | 0.42 | (0.49 | ) | — | (0.49 | ) | 7.44 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class C (8/01) | ||||||||||||||||||||||||||||||||||||
2020(e) | 7.43 | 0.16 | 0.18 | 0.34 | (0.19 | ) | — | (0.19 | ) | 7.58 | ||||||||||||||||||||||||||
2019 | 7.50 | 0.40 | (0.04 | ) | 0.36 | (0.43 | ) | — | (0.43 | ) | 7.43 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||
2020(e) | 7.60 | 0.19 | 0.17 | 0.36 | (0.21 | ) | — | (0.21 | ) | 7.75 | ||||||||||||||||||||||||||
2019 | 7.67 | 0.45 | (0.04 | ) | 0.41 | (0.48 | ) | — | (0.48 | ) | 7.60 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I (8/01) | ||||||||||||||||||||||||||||||||||||
2020(e) | 7.47 | 0.20 | 0.17 | 0.37 | (0.23 | ) | — | (0.23 | ) | 7.61 | ||||||||||||||||||||||||||
2019 | 7.54 | 0.48 | (0.04 | ) | 0.44 | (0.51 | ) | — | (0.51 | ) | 7.47 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||
44
| 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) | ||||||||||||||||||||||||||||
| 5.05 | % | $ | 132,304 | 1.05 | %* | 5.10 | %* | 1.00 | %* | 5.14 | %* | 26 | % | |||||||||||||||||||||
| 5.86 | 151,673 | 1.01 | 6.17 | 1.00 | 6.19 | 113 | ||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| 4.68 | 31,905 | 1.80 | * | 4.34 | * | 1.75 | * | 4.39 | * | 26 | ||||||||||||||||||||||||
| 5.04 | 35,655 | 1.77 | 5.44 | 1.75 | 5.46 | 113 | ||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| 4.86 | 308 | 1.30 | * | 4.85 | * | 1.25 | * | 4.90 | * | 26 | ||||||||||||||||||||||||
| 5.56 | 298 | 1.27 | 5.95 | 1.26 | 5.96 | 113 | ||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| 5.02 | 112,717 | 0.80 | * | 5.30 | * | 0.75 | * | 5.35 | * | 26 | ||||||||||||||||||||||||
| 6.10 | 101,560 | 0.76 | 6.44 | 0.75 | 6.45 | 113 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| (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 2019. |
| * | Annualized. |
See accompanying notes to financial statements.
45
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) | ||||||||||||||||||||||||||||||||||||||||
2020(f) | $ | 10.60 | $ | 0.18 | $ | 0.20 | $ | 0.38 | $ | (0.19 | ) | $ | — | $ | — | $ | (0.19 | ) | $ | 10.79 | ||||||||||||||||||||
2019 | 10.17 | 0.40 | 0.38 | 0.78 | (0.35 | ) | — | — | (0.35 | ) | 10.60 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||||||
2020(f) | 10.55 | 0.14 | 0.20 | 0.34 | (0.15 | ) | — | — | (0.15 | ) | 10.74 | |||||||||||||||||||||||||||||
2019 | 10.12 | 0.32 | 0.39 | 0.71 | (0.28 | ) | — | — | (0.28 | ) | 10.55 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||||||
2020(f) | 10.64 | 0.17 | 0.20 | 0.37 | (0.18 | ) | — | — | (0.18 | ) | 10.83 | |||||||||||||||||||||||||||||
2019 | 10.21 | 0.37 | 0.39 | 0.76 | (0.33 | ) | — | — | (0.33 | ) | 10.64 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class R6 (1/15) | ||||||||||||||||||||||||||||||||||||||||
2020(f) | 10.64 | 0.20 | 0.21 | 0.41 | (0.21 | ) | — | — | (0.21 | ) | 10.84 | |||||||||||||||||||||||||||||
2019 | 10.20 | 0.44 | 0.38 | 0.82 | (0.38 | ) | — | — | (0.38 | ) | 10.64 | |||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||||
2020(f) | 10.60 | 0.19 | 0.21 | 0.40 | (0.21 | ) | — | — | (0.21 | ) | 10.79 | |||||||||||||||||||||||||||||
2019 | 10.17 | 0.42 | 0.39 | 0.81 | (0.38 | ) | — | — | (0.38 | ) | 10.60 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
46
| 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) | ||||||||||||||||||||||||||||
| 3.64 | % | $ | 160,776 | | 0.96 | %* | | 3.15 | %* | | 0.84 | %* | 3.27 | %* | 24 | % | ||||||||||||||||||
| 7.89 | 87,084 | 0.96 | 3.79 | 0.84 | 3.90 | 54 | ||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||||||
| 3.26 | 38,098 | 1.71 | * | 2.43 | * | 1.59 | * | 2.55 | * | 24 | ||||||||||||||||||||||||
| 7.11 | 42,024 | 1.71 | 3.03 | 1.59 | 3.15 | 54 | ||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||||||
| 3.52 | 2,444 | 1.21 | * | 2.95 | * | 1.09 | * | 3.07 | * | 24 | ||||||||||||||||||||||||
| 7.61 | 2,792 | 1.20 | 3.52 | 1.09 | 3.64 | 54 | ||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||||||
| 3.90 | 70,611 | 0.62 | * | 3.50 | * | 0.50 | * | 3.62 | * | 24 | ||||||||||||||||||||||||
| 8.24 | 50,127 | 0.62 | 4.14 | 0.50 | 4.26 | 54 | ||||||||||||||||||||||||||||
| (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 | |||||||||||||||||||||||
| 3.76 | 404,856 | 0.71 | * | 3.43 | * | 0.59 | * | 3.54 | * | 24 | ||||||||||||||||||||||||
| 8.15 | 400,059 | 0.71 | 4.04 | 0.59 | 4.15 | 54 | ||||||||||||||||||||||||||||
| (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 | ||||||||||||||||||||||||||||
| (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 period ended December 31, 2019. |
| * | Annualized. |
See accompanying notes to financial statements.
47
(Unaudited)
1. 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 (the “1940 Act”), as amended. The Trust is comprised of Nuveen High Income Bond Fund (“High Income 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, 2019, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2019 (the “current fiscal period”).
Investment Adviser and Sub-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.
Share Classes and Sales Charges
Class A Shares are generally dol with an up-front sales charge. Class A shares purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but are subject to 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, R6 and I shares are sold without an up-front sales charge.
2. Significant Accounting Policies
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. Each Fund is an investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services – Investment Companies. The NAV for financial reporting purposes may differ from the NAV for processing security and shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing security and shareholder transactions. The following is a summary the significant accounting policies consistently followed by the Funds.
Compensation
The Trust pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The 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.
Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Foreign Currency Transactions and Translation
The books and records of the Funds are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at each prevailing exchange rate on the respective dates of the transactions.
48
Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives 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 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.
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.
Investment and Investment Income
Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Investment income is comprised of interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, and is recorded on an accrual basis. Investment 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.
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.
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.
New Accounting Pronouncements and Rule Issuances
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. During the current fiscal period, ASU 2017-08 became effective for the Funds and it did not have a material impact on the Funds’ financial statements.
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued ASU 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 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. Management has early implemented this guidance and it did not have a material impact on the Funds’ financial statements.
49
Notes to Financial Statements(Unaudited) (continued)
3. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
The Funds’ investments in securities is recorded at their estimated fair value. 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.
Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Like most fixed-income securities, the senior and subordinated loans in which the Fund invests are not listed on an organized exchange. The secondary market of such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior and subordinated loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan. These securities are generally classified as Level 2.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
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.
50
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:
| High Income Bond | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 215,496,391 | $ | — | *** | $ | 215,496,391 | |||||||
Exchange-Traded Funds | 14,023,856 | — | — | 14,023,856 | ||||||||||||
Contingent Capital Securities | — | 4,192,099 | — | 4,192,099 | ||||||||||||
Variable Rate Senior Loans Interests | — | 2,926,918 | — | 2,926,918 | ||||||||||||
$25 Par (or similar) Retail Preferred | 2,370,289 | — | — | 2,370,289 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 1,378,125 | — | 1,378,125 | ||||||||||||
Sovereign Debt | — | 1,103,200 | — | 1,103,200 | ||||||||||||
Common Stock | — | — | 139 | *** | 139 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 14,714,943 | — | — | 14,714,943 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 32,477,526 | — | — | 32,477,526 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Credit Default Swaps** | — | 638,440 | — | 638,440 | ||||||||||||
| Total | $ | 63,586,614 | $ | 225,735,173 | $ | 139 | $ | 289,321,926 | ||||||||
| Strategic Income | ||||||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 252,002,039 | $ | — | $ | 252,002,039 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 228,084,076 | — | 228,084,076 | ||||||||||||
U.S. Government and Agency Obligations | — | 49,042,497 | — | 49,042,497 | ||||||||||||
Variable Rate Senior Loan Interests | — | 44,177,599 | — | 44,177,599 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 34,083,488 | 34,083,488 | |||||||||||||
Contingent Capital Securities | — | 28,786,761 | — | 28,786,761 | ||||||||||||
Sovereign Debt | — | 15,881,285 | — | 15,881,285 | ||||||||||||
Municipal Bonds | — | 9,514,543 | — | 9,514,543 | ||||||||||||
$25 Par (or similar) Retail Preferred | 1,954,400 | 2,214,500 | *** | — | 4,168,900 | |||||||||||
Investments Purchased with Collateral from Securities Lending | 8,942,074 | — | — | 8,942,074 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Money Market Funds | 7,242,520 | — | — | 7,242,520 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts** | (766,633 | ) | — | — | (766,633 | ) | ||||||||||
Credit Default Swaps** | — | (783,378 | ) | — | (783,378 | ) | ||||||||||
| Total | $ | 17,372,361 | $ | 663,003,410 | $ | — | $ | 680,375,771 | ||||||||
| * | 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 Fund’s Portfolio of Investments for securities classified as Level 3. Value equals zero as of the end of the reporting period. |
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Securities Lending
In order to generate additional income, each Fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, the Funds retain the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. 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.
51
Notes to Financial Statements(Unaudited) (continued)
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 | ||||||||||
| High Income Bond | ||||||||||||||
| Corporate Bonds | $ | 14,179,682 | $ | (14,179,682 | ) | $ | — | |||||||
| Strategic Income | ||||||||||||||
| Corporate Bonds | $ | 2,542,881 | $ | (2,542,881 | ) | $ | — | |||||||
| $1,000 Par (or Similar) Institutional Preferred | 5,944,950 | (5,944,950 | ) | — | ||||||||||
| Contingent Capital Securities | 108,000 | (108,000 | ) | — | ||||||||||
Total | $ | 8,595,831 | $ | (8,595,831 | ) | $ | — | |||||||
| * | 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.
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:
| High Income Bond | Strategic Income | |||||||
| Purchases: | ||||||||
Investment securities | $ | 61,891,778 | $ | 218,130,322 | ||||
U.S. Government and agency obligations | — | 37,925,830 | ||||||
| Sales and maturities: | ||||||||
Investment securities | 91,375,371 | 135,479,855 | ||||||
U.S. Government and agency obligations | — | 11,651,368 | ||||||
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.
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.
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
52
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, Strategic Income used U.S. Treasury and Eurodollar futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure; using selected 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:
| Strategic Income | ||||
| Average notional amount of futures contracts outstanding* | $ | 113,068,132 | ||
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
| Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Strategic Income | ||||||||||||||
Interest Rate | Futures contracts | Receivable for variation margin on futures contracts* | $ | 425,584 | Payable for variation margin on futures contracts* | $ | (1,192,217 | ) | ||||||
| * | 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 | ||||||||
| Strategic Income | Interest rate | Futures contracts | $ | 3,158,070 | $ | (1,550,238 | ) | |||||
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.
53
Notes to Financial Statements(Unaudited) (continued)
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 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* | $ | 19,766,667 | $ | 29,800,000 | ||||
| * | 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. 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 | |||||||||
High Income Bond | ||||||||||||||
Interest Rate | Swaps (OTC Cleared) | — | $ | — | Payable for variation margin on swap contracts* | $ | 638,440 | |||||||
Strategic Income | ||||||||||||||
Interest Rate | Swaps (OTC Cleared) | Receivable for variation margin on swap contracts* | $ | (783,378 | ) | — | $ | — | ||||||
| * | 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. |
54
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 | $ | (57,826 | ) | $ | 612,798 | |||||
| Strategic Income | Credit | Swaps | $ | 710,762 | $ | (540,560 | ) | |||||
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.
5. Fund Shares
On December 12, 2018, Class T Shares were liquidated.
Transactions in Fund shares during the current and prior fiscal period were as follows:
| Six Month Ended 12/31/19 | Year Ended 6/30/19 | |||||||||||||||
| High Income Bond | Shares | Amount | Shares | Amount | ||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 3,660,635 | $ | 27,196,023 | 14,857,337 | $ | 108,487,700 | ||||||||||
Class A – automatic conversion of Class C Shares | 92,322 | 685,568 | 3,891 | 28,291 | ||||||||||||
Class C | 279,898 | 2,078,410 | 1,010,630 | 7,430,289 | ||||||||||||
Class R3 | 1,205 | 9,191 | 7,620 | 57,202 | ||||||||||||
Class I | 7,979,327 | 59,549,477 | 16,978,120 | 125,049,345 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 484,576 | 3,608,328 | 1,111,439 | 8,167,919 | ||||||||||||
Class C | 111,402 | 828,107 | 271,745 | 1,992,842 | ||||||||||||
Class R3 | 1,050 | 7,988 | 3,260 | 24,443 | ||||||||||||
Class I | 342,520 | 2,559,637 | 875,450 | 6,451,972 | ||||||||||||
| 12,952,935 | 96,522,729 | 35,119,492 | 257,690,003 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (7,179,451 | ) | (52,998,852 | ) | (12,411,998 | ) | (91,239,124 | ) | ||||||||
Class C | (883,895 | ) | (6,545,626 | ) | (1,962,557 | ) | (14,460,897 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (92,438 | ) | (685,568 | ) | (3,896 | ) | (28,291 | ) | ||||||||
Class R3 | (1,717 | ) | (13,137 | ) | (33,371 | ) | (251,879 | ) | ||||||||
Class I | (7,116,641 | ) | (52,773,133 | ) | (22,794,940 | ) | (167,766,977 | ) | ||||||||
Class T | — | — | (3,161 | ) | (22,598 | ) | ||||||||||
| (15,274,142 | ) | (113,016,316 | ) | (37,209,923 | ) | (273,769,766 | ) | |||||||||
| Net increase (decrease) | (2,321,207 | ) | $ | (16,493,587 | ) | (2,090,431 | ) | $ | (16,079,763 | ) | ||||||
55
Notes to Financial Statements(Unaudited) (continued)
| Six Month Ended 12/31/19 | Year Ended 6/30/19 | |||||||||||||||
| Strategic Income | Shares | Amount | Shares | Amount | ||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 7,994,986 | $ | 86,054,416 | 1,864,425 | $ | 19,087,479 | ||||||||||
Class A – automatic conversion of Class C Shares | 3,120 | 33,607 | 9,521 | 97,015 | ||||||||||||
Class C | 193,827 | 2,074,012 | 243,747 | 2,473,021 | ||||||||||||
Class R3 | 25,724 | 276,668 | 177,043 | 1,813,886 | ||||||||||||
Class R6 | 2,066,215 | 22,280,356 | 934,679 | 9,637,881 | ||||||||||||
Class I | 5,092,864 | 54,707,367 | 7,319,706 | 74,908,459 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 201,115 | 2,167,391 | 265,623 | 2,714,756 | ||||||||||||
Class C | 46,027 | 493,003 | 114,832 | 1,166,653 | ||||||||||||
Class R3 | 2,622 | 28,330 | 9,027 | 92,765 | ||||||||||||
Class R6 | 113,532 | 1,227,990 | 156,686 | 1,608,403 | ||||||||||||
Class I | 376,368 | 4,053,621 | 778,897 | 7,957,863 | ||||||||||||
| 16,116,400 | 173,396,761 | 11,874,186 | 121,558,181 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (1,516,888 | ) | (16,315,365 | ) | (4,428,723 | ) | (44,937,856 | ) | ||||||||
Class C | (672,829 | ) | (7,189,783 | ) | (2,256,628 | ) | (22,892,717 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (3,134 | ) | (33,607 | ) | (9,568 | ) | (97,015 | ) | ||||||||
Class R3 | (65,035 | ) | (702,367 | ) | (498,671 | ) | (5,162,337 | ) | ||||||||
Class R6 | (373,599 | ) | (4,031,935 | ) | (949,406 | ) | (9,731,682 | ) | ||||||||
Class I | (5,697,597 | ) | (61,109,630 | ) | (18,860,199 | ) | (191,647,964 | ) | ||||||||
Class T | — | — | (2,343 | ) | (23,290 | ) | ||||||||||
| (8,329,082 | ) | (89,382,687 | ) | (27,005,538 | ) | (274,492,861 | ) | |||||||||
| Net increase (decrease) | 7,787,318 | $ | 84,014,074 | (15,131,352 | ) | $ | (152,934,680 | ) | ||||||||
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 table below presents the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of December 31, 2019.
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.
| High Income Bond | Strategic Income | |||||||
| Tax cost of investments | $ | 283,097,451 | $ | 658,148,564 | ||||
| Gross unrealized: | ||||||||
Appreciation | $ | 13,407,942 | $ | 22,781,399 | ||||
Depreciation | (5,891,356 | ) | (2,653,655 | ) | ||||
| Net unrealized appreciation (depreciation) of investments | $ | 7,516,586 | $ | 20,127,744 | ||||
56
Permanent differences, primarily due to federal taxes paid, investments in passive foreign investment companies, foreign currency transactions, complex security character adjustments, investments in partnerships and treatment of notional principal contracts, resulted in reclassifications among the Funds’ components of net assets as of June 30, 2019, the Funds’ last tax year end.
The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2019, the Funds’ last tax year end, were as follows:
High Income Bond | Strategic Income | |||||||
| Undistributed net ordinary income1 | $ | 639,462 | $ | 1,521,363 | ||||
| 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, 2019 through June 30, 2019 and paid on July 1, 2019. 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, 2019 was designated for purposes of the dividends paid deduction as follows:
| High Income Bond | Strategic Income | |||||||
| Distributions from net ordinary income2 | $ | 19,524,783 | $ | 22,669,921 | ||||
| Distributions from net long-term capital gains | — | — | ||||||
| 2 | Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
As of June 30, 2019, 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.
High Income Bond | Strategic Income | |||||||
| Not subject to expiration: | ||||||||
Short-term | $ | 45,922,573 | $ | 27,322,257 | ||||
Long-term | 80,054,914 | 32,824,222 | ||||||
| Total | $ | 125,977,487 | $ | 60,146,479 | ||||
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Fund has elected to defer losses as follows:
| High Income Bond | ||||||||
| Post-October capital losses3 | $ | — | ||||||
| Late-year ordinary losses4 | 1,000,771 | |||||||
| 3 | Capital losses incurred from November 1, 2018 through June 30, 2019, the Funds’ last tax year end. |
| 4 | Ordinary losses incurred from January 1, 2019 through June 30, 2019 and/or specified losses incurred from November 1, 2018 through June 30, 2019. |
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.
57
Notes to Financial Statements(Unaudited) (continued)
The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
| Average Daily Net Assets | High Income Bond | Strategic Income | ||||||
| For the first $125 million | 0.4000 | % | 0.3600 | % | ||||
| For the next $125 million | 0.3875 | 0.3475 | ||||||
| For the next $250 million | 0.3750 | 0.3350 | ||||||
| For the next $500 million | 0.3625 | 0.3225 | ||||||
| For the next $1 billion | 0.3500 | 0.3100 | ||||||
| For the next $3 billion | 0.3250 | 0.2850 | ||||||
| For the next $5 billion | 0.3000 | 0.2600 | ||||||
| For net assets over $10 billion | 0.2875 | 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, 2019, the complex-level fee for each Fund was as follows: |
| Fund | Complex-Level Fee | |||
| High Income Bond | 0.2000 | % | ||
| Strategic Income | 0.1949 | |||
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 | ||||
High Income Bond | 0.75 | % | July 31, 2021 | |||
Strategic Income | 0.59 | July 31, 2021 | ||||
Distribution and Service Fees
Each Fund has adopted a distribution and service plan under rule 12b-1 under the 1940 Act. Class A Shares incur a 0.25% annual 12b-1 service fee. Class C Shares incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class R3 Shares 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 12b-1 distribution or service fees. The fees under this plan compensate Nuveen Securities, LLC, (the “Distributor”), a wholly-owned subsidiary of Nuveen, for services provided and expenses incurred in distributing shares of the Funds and establishing and maintaining shareholder accounts.
58
Other Transactions with Affiliates
During the current fiscal period, the Distributor collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
High Income Bond | Strategic Income | |||||||
| Sales charges collected | $ | 138,435 | $ | 179,117 | ||||
| Paid to financial intermediaries | 122,949 | 156,932 | ||||||
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:
High Income Bond | Strategic Income | |||||||
| Commission advances | $ | 70,637 | $ | 40,180 | ||||
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:
High Income Bond | Strategic Income | |||||||
| 12b-1 fees retained | $ | 46,992 | $ | 18,685 | ||||
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:
High Income Bond | Strategic Income | |||||||
| CDSC retained | $ | 3,843 | $ | 1,914 | ||||
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, $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 June 2020 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, High Income Bond utilized this facility. The Fund’s average daily balance outstanding (which was for one day during the current reporting period) and average annual interest rate during the utilization period was $19,700,000 and 3.21%, respectively. The Fund’s maximum outstanding daily balance during the utilization period was $19,700,000. Borrowings outstanding as of the end of the reporting period are recognized as “Borrowings” on the Statement of Assets and Liabilities. Strategic Income did not utilize this facility during the current fiscal period.
59
Information
Investment Adviser 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 |
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 as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov.
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.
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.
60
Glossary of Terms 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. |
| ∎ | 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, 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. |
61
Glossary of Terms Used in this Report(continued)
| ∎ | Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change. |
| ∎ | Lipper Global High Yield Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Global High Yield Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge. |
| ∎ | Lipper Multi-Sector Income Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Multi-Sector Income Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charge. |
| ∎ | Mortgage-Backed Securities (MBS): Mortgage-backed securities (MBS) are bonds backed by pools of mortgages, usually with similar characteristics, and which return principal and interest in each payment. MBS are composed of residential mortgages (RMBS) or commercial mortgages (CMBS). RMBS are further divided into agency RMBS andnon-agency RMBS, depending on the issuer. |
| ∎ | Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding. |
| ∎ | 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. |
62
Notes
63
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.
Learn more about Nuveen Funds at:www.nuveen.com/mutual-funds
| Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com | MSA-FINC-1219P 1077316-INV-B-02/21 |
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 6, 2020
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 6, 2020
| By | (Signature and Title) | /s/ E. Scott Wickerham | ||||
E. Scott Wickerham Vice President and Controller (principal financial officer) |
Date: March 6, 2020