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)
Mark J. Czarniecki
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, 2020
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
2020
Nuveen Income Funds
| Fund Name | Class A | Class C | Class R3 | Class R6 | Class I | |||||
| Nuveen Credit Income Fund | FJSIX | FCSIX | FANSX | — | FJSYX | |||||
| Nuveen Strategic Income Fund | FCDDX | FCBCX | FABSX | FSFRX | FCBYX |
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will not be sent to you 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.
You may elect to receive shareholder reports and other communications from the Funds electronically at any time by contacting the financial intermediary (such as a broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
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3
Chair’s Letter to Shareholders
Dear Shareholders,
The rollout of COVID-19 vaccines has kindled the promise of a more normal economy in 2021. Until then, the economic shortfall is expected to be bridged by a combination of fiscal relief measures and easier financial conditions aimed at supporting individuals, businesses and state and local governments. The measures taken to date have already helped the U.S. economy make a significant, although incomplete, turnaround from the depths of a historic recession. In late December 2020, the U.S. government enacted another $900 billion in aid to individuals and businesses, extending some of the programs enacted earlier in the COVID-19 crisis, and more stimulus is anticipated. The U.S. Federal Reserve, along with other central banks around the world, have pledged to keep monetary conditions accommodative for as long as necessary.
While the markets’ longer-term outlook has brightened, we expect intermittent bouts of volatility to continue. COVID-19 cases are still alarmingly high in some regions, and recent economic indicators have shown the dampening effect of renewed restrictions on social and business activity in the latter months of 2020. The pandemic’s course can still be unpredictable, and achieving sufficient inoculation of the population depends on many variables, including logistics, public confidence, real-world efficacy and the emergence of variant virus strains. Additionally, the Biden administration’s full policy agenda and the potential for Congressional gridlock remain to be seen, which could cause investment outlooks to shift. Nevertheless, short-term market fluctuations can provide opportunities to invest in new ideas as well as upgrade existing positioning, within our goal of providing long-term value for our shareholders. For more than 120 years, the careful consideration of risk and reward has guided Nuveen’s focus on delivering long-term results to our shareholders.
The beginning of the year can be an opportune time to assess your portfolio’s resilience and readiness for what may come next. We encourage you to review your time horizon, risk tolerance and investment goals with your financial professional. 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 22, 2021
4
Comments
Nuveen Credit Income 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, Anders S. Persson, CFA, Jean C. Lin, CFA, Karen L. Bubeck, CFA, Aashh K. Parekh, CFA, Bill Martin and Brenda A. Langenfeld, CFA were portfolio managers for the Nuveen Credit Income Bond Fund during the reporting period. Portfolio managers for the Nuveen Strategic Income Fund include Douglas M. Baker, CFA, Bill Martin, Kevin Lorenz, CFA, Katherine Renfrew and Nicholas Travaglino.
Portfolio Manager Changes
Effective December 31, 2020, Bill Martin is no longer a portfolio manager of the Funds. Effective August 17, 2020, Brenda A. Langenfeld, CFA, was added as a portfolio manager of the Nuveen Credit Income Fund. Effective July 7, 2020, Anders S. Persson, CFA, Bill Martin, Karina L. Bubeck, CFA and Aashh K. Parekh, CFA, were named as portfolio managers and Kevin Lorenz, CFA, was removed as a portfolio manager of the Nuveen Credit Income Fund.
Fund Name and Investment Policy Changes
Effective July 7, 2020, the Nuveen High Income Bond Fund’s name was changed to Nuveen Credit Income Fund and its investment objective changed to provide total return with an emphasis on a high level of current income.
Here the Funds’ portfolio management team discusses key investment strategies and the Funds’ performance for the six-month reporting period December 31, 2020.
An Update on COVID-19 Coronavirus and its Impact on the Securities Markets
The start of vaccinations across Western countries has been encouraging for the markets, although the discovery of new variants of the COVID-19 coronavirus could cause expectations to be reassessed. The vaccine rollouts have also been slower than expected in some regions. Nevertheless, there are more vaccines still in development, some of which have announced positive trial results, and governments are looking to adjust rollout plans to speed distribution.
The economic recovery moderated in late 2020, as a resurgence of infections triggered another tightening in restrictions. The slower pace is expected to persist into 2021, prompting pledges from central banks and governments to sustain the recovery with policy support. In late December 2020, the U.S. government approved a $900 billion relief package, and more stimulus is anticipated from the Biden administration in 2021.
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)
Markets rallied on optimism for normalization in daily life and in the economy, furthering the recovery from the March 2020 sell-off. Although the detection of the virus in China was made public in December 2019, markets did not start to fully acknowledge the risks and potential economic impact until the latter portion of February 2020, when outbreaks outside of China were first reported. Global stock markets sold off severely, with the S&P 500® Index reaching a bear market (a 20% drop from the previous high) within three weeks, the fastest bear market decline in history. Even certain parts of the bond market suffered; below investment grade municipal and corporate bonds generally dropped the furthest, mostly out of concerns for the continued financial stability of lower quality issuers. Demand for safe-haven assets, along with mounting recession fears, drove the yield on the 10-year U.S. Treasury note to 0.5% in March 2020, an all-time low. Additionally, oil prices collapsed to an 18-year low on supply glut concerns, as shut-downs across the global economy sharply reduced oil demand, although oil prices have recovered to well above those lows.
While most markets have recovered the majority of their losses, volatility will likely remain elevated until the health crisis itself is under control (via fewer new cases, lower infection rates and/or wider immunity across populations). The situation remains fluid, given production and logistical challenges with rolling out the vaccine as well as public trust in it, and the potential for more harmful variants of the virus. The distribution of phase 3-tested vaccines has narrowed the range of outcomes for the course of the pandemic itself and the global economy, but there is still uncertainty in the timing of a full recovery.
Nuveen Fund Advisors, LLC, and their portfolio management teams are monitoring the situation carefully and continuously refining their views and approaches to managing their funds to best pursue investment objectives while mitigating risks through all market environments.
How did the Funds perform during the six-month reporting period ended December 31, 2020?
The tables in the Fund Performance and Expense Ratios section of this report provide each Fund’s total return performance information for each share class of the Fund for the period ended December 31, 2020. Each Fund’s Class A Shares at NAV are compared with the performance of its corresponding benchmark and Lipper classification average. A more detailed account of each Fund’s performance is provided later in this report.
The Nuveen Credit Income 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 the six-month reporting period. The Nuveen Strategic Income Fund’s Class A Shares at net asset value (NAV) outperformed the Bloomberg Barclays Aggregate Bond Index and performed in line with the Lipper Multi-Sector Income Funds Classification Average for the six-month reporting period.
Nuveen Credit Income Fund
What key strategies were used to manage the Fund during the six-month reporting period ended December 31, 2020 and how did these strategies influence performance?
As mentioned previously, effective July 7, 2020, the Fund has an objective of providing total return with an emphasis on a high level of current income. Previously the Fund had an objective of providing high income that blends below investment grade bonds from U.S. and non-U.S. issuers with other income-producing investments to expand return opportunities and increase diversification while seeking a high level of current income.
Economic growth rebounded strongly during the reporting period as world economies continued to heal from the effects of the COVID-19 crisis, although growth slowed near year-end relative to the dramatic post-lockdown surge seen earlier in 2020. Unemployment continued to fall, industrial activity expanded and consumer spending held up well even amid continued concerns about the spread of COVID-19. Despite the severity of renewed outbreaks in many countries, lockdowns were significantly less restrictive than earlier in 2020, allowing economic activity to maintain its momentum. Positive vaccine trial results later in the reporting period further boosted sentiment.
As anticipated, Federal Reserve (Fed) policymakers left rates unchanged throughout the reporting period as the U.S. economy continued to recover from its deepest recession in history. In September 2020, the Fed indicated its intent to leave the Federal Funds rate at the current level through at least 2023. Policymakers also announced a more flexible approach to targeting an average inflation rate of 2% over time, which will allow inflation to run higher before the central bank feels compelled to increase rates. At the
6
December 2020 meeting, policymakers issued a fresh set of economic projections, increasing 2020’s gross domestic product (GDP) growth forecast to -2.4% and slightly increased GDP and inflation forecasts for the next two years, and lowered the unemployment outlook as the economy recovered. In addition, the central bank continued its quantitative easing (QE) program, buying roughly $120 billion of Treasuries and agency mortgage-backed securities (MBS) per month across different maturities. Despite the Fed’s QE buying operations, the combination of economic expansion and greater vaccine certainty pushed longer maturity Treasury yields higher. Meanwhile, rates at the front end remained firmly anchored by the Fed’s commitment to remain on hold, allowing the yield curve to steepen modestly. The 10-year Treasury yield rose 27 basis points over the six-month reporting period to end at 0.93%.
High yield credit outpaced the rest of the fixed income market as spreads tightened by more than 264 basis points overall versus Treasuries, led by the lower quality, CCC rated tier as investors moved down the rating spectrum to pick up additional yield. The segment experienced significant inflows during the reporting period, which helped support the ongoing and robust new issue market.
At the beginning of the reporting period, the Fund transitioned to reflect its new strategy of offering exposure to an expanded investment universe outside of high yield corporate credit. The goal is to achieve better diversification and improve the Fund’s risk-adjusted return profile. Accordingly, the Fund added exposure to various “plus” sectors such as: securitized debt, including asset-backed securities (ABS) and commercial mortgage-backed (CMBS); emerging market (EM) debt; preferred and contingent capital (CoCo) securities; and senior loans. The record level of refinancings in the credit markets during the reporting period gave us ample opportunity to find attractive investments in these areas. To fund the purchases, the Fund reduced its high yield corporate exposure. The repositioning caused the Fund’s duration (interest rate sensitivity) to decrease and be more aligned with the benchmark duration.
In terms of the Fund’s outperformance during the reporting period, security selection within the high yield corporate sector contributed the most, particularly in the industrials area in sub-sectors such as communications, consumer noncyclical, technology and capital goods as these areas recovered from the COVID-19 crisis. A position in Staples was an especially strong contributor.
EM sovereign debt also aided the Fund’s results after posting strong returns as risk recovered. The segment benefited from a weaker dollar, the Biden presidential victory (which led to higher expectations for fiscal stimulus) and the COVID-19 vaccine results that caused a surge in oil prices based on hopes of a quicker recovery in global growth. Sovereign debt from the Ukraine and Kenya were also key contributors in the Fund’s portfolio.
Allocations to preferred and CoCo securities helped as the sectors recovered nicely from low points earlier in 2020. Issuance was very modest in both segments, which was supportive of valuations as rates remained fairly range-bound and the global demand for income persisted in the low rate environment. Also, investor sentiment improved toward preferred securities due to better-than-expected U.S. bank sector earnings, coupled with two series of stress tests conducted by the Fed on the U.S. bank sector. The CoCo market was also supported as European and U.K. banks maintained more than sufficient capital, had access to unlimited liquidity and continued to benefit from a supportive regulatory, monetary and fiscal backdrop. However, the favorable impact of allocating to preferred and CoCo securities was partially offset by negative security selection within the segments.
In terms of other detractors, the Fund’s modest allocations to senior loans, ABS and CMBS lagged during the reporting period. Although these sectors produced excess returns over Treasuries, they couldn’t keep up with the risk-on rally, particularly in the high yield corporate, preferred securities and EM segments.
Also, the Fund was hindered by its slightly elevated level of cash and exposure to several exchange-traded funds (ETFs) that we held as we repositioned the portfolio into the various plus sectors. In light of the reporting period’s strong spread sector performance, these exposures were a drag on returns relative to the benchmark. However, given the market strength and ongoing COVID-19 related headwinds during the reporting period, we wanted to move somewhat cautiously as we looked for opportunities to deploy the funds.
As the reporting period came to a close, the Fund was positioned to benefit from a cyclical recovery in areas such as basic industries, consumer cyclicals, leisure and autos due to recent COVID-19 vaccine approvals, strengthening economic growth and continued monetary and fiscal policy support. The Fund ended the reporting period positioned midway along its risk spectrum with just under 50% allocated to high yield bonds and the rest to a diversified mix of primarily lower quality credit sectors. The Fund reduced high yield exposure later in the reporting period after the segment’s strong performance and spread tightening, rotating into EM debt and preferred/CoCo securities due to better values found in those segments. The Fund increased its allocation to senior loans, which
7
Portfolio Managers’ Comments (continued)
offered floating-rate coupons and good relative value versus high yield. We added some mining exposure in the basic industries sector and some aerospace/defense and building materials exposures in capital goods. In addition, the Fund decreased its weight in longer-duration, lower yielding BB rated bonds and increased its exposures to the lower rated B and CCC segments. At the end of the reporting period, the Fund’s duration was slightly longer than the index as we shifted away from high yield securities and into other asset classes that tend to have somewhat longer duration profiles.
Nuveen Strategic Income Fund
What key strategies were used to manage the Fund during the six-month reporting period ended December 31, 2020 and how did these strategies influence performance?
A broadly flexible, multi-sector bond Fund that seeks total return. The team actively manages a diversified portfolio of investment grade and high yield debt securities from U.S. and non-U.S. issuers.
Economic growth rebounded strongly during the reporting period as world economies continued to heal from the effects of the COVID-19 crisis, although growth slowed near year-end relative to the dramatic post-lockdown surge seen earlier in 2020. Unemployment continued to fall, industrial activity expanded and consumer spending held up well even amid continued concerns about the spread of COVID-19. Despite the severity of renewed outbreaks in many countries, lockdowns were significantly less restrictive than earlier in 2020, allowing economic activity to maintain its momentum. Positive vaccine trial results later in the reporting period further boosted sentiment.
As anticipated, Federal Reserve (Fed) policymakers left rates unchanged throughout the reporting period as the U.S. economy continued to recover from its deepest recession in history. In September 2020, the Fed indicated its intent to leave the Federal Funds rate at the current level through at least 2023. Policymakers also announced a more flexible approach to targeting an average inflation rate of 2% over time, which will allow inflation to run higher before the central bank feels compelled to increase rates. At the December 2020 meeting, policymakers issued a fresh set of economic projections, increasing 2020’s gross domestic product (GDP) growth forecast to -2.4% and slightly increased GDP and inflation forecasts for the next two years, and lowered the unemployment outlook as the economy recovered. In addition, the central bank continued its quantitative easing (QE) program, buying roughly $120 billion of Treasuries and agency mortgage-backed securities (MBS) per month across different maturities. Despite the Fed’s QE buying operations, the combination of economic expansion and greater vaccine certainty pushed longer maturity Treasury yields higher. Meanwhile, rates at the front end remained firmly anchored by the Fed’s commitment to remain on hold, allowing the yield curve to steepen modestly. The 10-year Treasury yield rose 27 basis points over the six-month reporting period to end at 0.93%.
The ongoing and unprecedented fiscal and monetary stimulus continued to boost the credit markets. Specifically, the Fed’s support through the Primary and Secondary Market Corporate Credit Facilities was a key driver in the recovery of corporate bond prices. Also, with yields low and volatility suppressed, investors gained confidence in moving down the credit spectrum. Investment grade corporations issued a record-breaking $1.8 trillion worth of bonds in 2020 (60% above 2019’s issuance level), which was easily absorbed by the market. Corporate issuers took advantage of low yields and strong investor appetite to improve balance sheet liquidity and extend the duration profile of their liabilities. Investment grade credit spreads tightened and the segment outperformed Treasuries driven by these strong technical dynamics, improved corporate earnings, reduced election uncertainty, positive vaccine developments and the signing of a $900 billion fiscal package at the end of the reporting period.
High yield credit outpaced the rest of the fixed income market as spreads tightened by more than 264 basis points overall versus Treasuries, led by the lower quality, CCC rated tier as investors moved down the rating spectrum to pick up additional yield. The segment experienced significant inflows during the reporting period, which helped support the ongoing and robust new issue market.
In the securitized sectors, both commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) outperformed Treasuries during the reporting period. The CMBS market saw a significant rally in spreads even as supply came to the market, which was primarily the result of a “catch-up” trade to other non-securitized asset classes that had previously recovered to pre-COVID-19 levels. As the reporting period progressed, investors gained confidence that significant downside risk was unlikely in the CMBS market due to a sustained flattening of default rates. The ABS market shifted into a higher gear later in the reporting period, mostly driven by news of multiple vaccines. Spreads tightened in COVID-19 sensitive sectors such as aircraft ABS and almost any other securities offering attractive yields.
8
Agency MBS generated modest excess returns over Treasuries, but significantly lagged other major fixed income asset classes. Fed bond buying remained significant and supportive of the sector, which offers an attractive spread compared to Treasuries. Spreads for credit risk transfer (CRT) and non-agency MBS tightened versus Treasuries as investors sought excess yields versus corporate bond alternatives.
The Fund outperformed the Bloomberg Barclays Aggregate Bond Index mainly due to its broad allocations to spread sectors and almost complete lack of exposure to Treasuries during the reporting period. The corporate segment drove the bulk of the outperformance as a risk-on rally and search for yield drove spreads tighter across the space, leading to strong excess returns versus Treasuries. The majority of the favorable results came from sector allocations including overweights in high yield bonds, preferred and contingent capital (CoCo) securities, and loans, as well as security selection in those segments.
In the high yield and loan segments, the Fund’s existing and new out-of-index positions in select energy and consumer related holdings benefited from the reflationary and recovery theme throughout the reporting period. In the preferred and CoCo segments, results were boosted by an overweight and selection in securities issued by banks. The Fund used preferred and CoCo exposure as a diversifier to complement the Fund’s overall emphasis on financials as well as other exposures. In investment grade credit, security selection proved helpful in the energy and financial areas. Also, the Fund’s agency MBS positions delivered attractive income, while spreads on lower rated MBS tightened as COVID-19 related delinquencies slowed and only a few borrowers transitioned into default.
Interest rate positioning also modestly aided results given the move higher in rates. (Bond prices move in the opposite direction of rates.) The Fund was consistently positioned with a slightly shorter duration relative to its benchmark during the reporting period, which lessened its interest rate sensitivity. The Fund achieved this by avoiding long duration securities in favor of exposure at the front end of the yield curve (maturities of five years and under). The Fund was also positioned to benefit from a steeper yield curve. Both stances proved beneficial given that longer rates rose slightly and short rates remained anchored by the Fed’s commitment, causing the yield curve to steepen somewhat.
Given the Fund’s emphasis on spread product, which performed well during this risk-on period, the Fund had no areas that meaningfully underperformed. However, some positions in esoteric ABS issues were a marginal drag on investment results. As the reporting period progressed, the ABS sector was not able to maintain its previous level of performance and spreads tightened less than other investment grade and below investment grade sectors.
Because we expected the economic recovery to continue with help from global monetary policy and additional stimulus, the Fund’s down-in-quality bias increased toward the end of the reporting period. The Fund reduced its exposure to long-duration investment grade corporate bonds in favor of high yield, preferred and CoCo securities, while maintaining overweights within energy and financials and slightly increased emerging market exposure during the reporting period. The Fund shifted from an investment grade bias into more below investment grade issues toward the end of the reporting period. At the end of the reporting period, the Fund had minimal exposure to U.S. Treasuries and a significant underweight to MBS versus the index. The Fund remained overweight in ABS because we believe the strong consumer will likely continue to drive returns in the segment. The Fund’s duration was modestly short versus the benchmark with a bias toward a steeper yield curve.
We used U.S. Treasury 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 negligible impact on performance during the reporting period.
In addition, we used high yield CDX swaps to hedge a portion of the Fund’s high yield credit risk exposure. The effect of these activities on performance was negligible during the reporting period.
9
Risk Considerations and Dividend Information
Risk Considerations
Nuveen Credit Income Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Credit risk arises from an issuer’s ability to make interest and principal payments when due, as well as the prices of bonds declining when an issuer’s credit quality is expected to deteriorate. The Fund’s income could decline during periods of falling interest rates. Investments in below investment grade or high yield securities are subject to liquidity risk and heightened credit risk. This Fund is subject to the risks of investing in loans, including senior loans and secured and unsecured junior loans. Unsecured loans are not backed by a security interest in collateral and involve a higher degree of risk than secured loans. Loans are also subject to settlement risk due to the lack of established settlement standards or remedies for failure to settle, and may have limited restrictive covenants on borrowers, which may weaken the Fund’s ability to access collateral securing the loan and enforce its rights as a lender. The Fund may also invest in a pool of loans through collateralized loan obligations (CLOs). In addition to the risks associated with loans and high yield securities, CLOs are subject to the risk that distributions from the collateral may not be adequate to make interest or other payments owed to the Fund. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments. Preferred securities are subordinate to bonds and other debt instruments in a company’s capital structure and therefore are subject to greater credit risk. Certain types of preferred, hybrid or debt securities with special loss absorption provisions, such as contingent capital securities (CoCos), may be or become so subordinated that they present risks equivalent to, or in some cases even greater than, the same company’s common stock. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as call, derivatives, illiquid investments, interest rate, market, and valuation risks, are described in detail in the Fund’s prospectus.
Nuveen Strategic Income Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk, and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. The Fund gains additional exposure to currency rates, and therefore to the risk of currency fluctuation, through investment in foreign currency contracts. The risks of foreign investments are magnified in emerging markets. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments.
Dividend Information
Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. Distributions to shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to Note 6 – Income Tax Information for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of each Fund’s distributions for the reporting period are presented in this report’s Financial Highlights. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
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and Expense Ratios
The Fund Performance and Expense Ratios for each Fund are shown within this section of the report.
Fund Performance
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 (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at NAV only.
Expense Ratios
The expense ratios shown are as of the Fund’s most recent prospectus. The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any). The expense ratios include management fees and other fees and expenses.
11
Fund Performance and Expense Ratios (continued)
Nuveen Credit 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
| Total Returns as of December 31, 2020* | ||||||||||||||||||||||||||||
| Inception Date | Cumulative | Average Annual | Expense Ratios** | |||||||||||||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | Gross | Net | |||||||||||||||||||||||
Class A Shares at NAV | 8/30/01 | 11.80% | 0.94% | 7.90% | 5.19% | 1.16% | 1.04% | |||||||||||||||||||||
Class A Shares at maximum Offering Price | 8/30/01 | 6.54% | (3.88)% | 6.86% | 4.67% | — | — | |||||||||||||||||||||
Bloomberg Barclays High Yield 2% Issuer Capped Index | — | 11.32% | 7.05% | 8.57% | 6.79% | — | — | |||||||||||||||||||||
Lipper Global High Yield Funds Classification Average | — | 11.08% | 4.46% | 6.74% | 5.36% | — | — | |||||||||||||||||||||
Class C Shares | 8/30/01 | 11.26% | 0.17% | 7.09% | 4.44% | 1.91% | 1.79% | |||||||||||||||||||||
Class R3 Shares | 9/24/01 | 11.74% | 0.88% | 7.66% | 4.95% | 1.41% | 1.29% | |||||||||||||||||||||
Class I Shares | 8/30/01 | 12.06% | 1.33% | 8.16% | 5.48% | 0.90% | 0.79% | |||||||||||||||||||||
| * | 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. Effective March 1, 2021, Class C Shares will automatically convert to Class A Shares eight 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, 2022 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities (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. |
12
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
| Total Returns as of December 31, 2020* | ||||||||||||||||||||||||||||
| Inception Date | Cumulative | Average Annual | Expense Ratios** | |||||||||||||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | Gross | Net | |||||||||||||||||||||||
Class A Shares at NAV | 2/01/00 | 7.07% | 8.08% | 6.24% | 5.00% | 0.97% | 0.84% | |||||||||||||||||||||
Class A Shares at maximum Offering Price | 2/01/00 | 2.56% | 3.48% | 5.33% | 4.55% | — | — | |||||||||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | — | 1.29% | 7.51% | 4.44% | 3.84% | — | — | |||||||||||||||||||||
Lipper Multi-Sector Income Funds Classification Average | — | 7.10% | 5.64% | 5.28% | 4.72% | — | — | |||||||||||||||||||||
Class C Shares | 2/01/00 | 6.60% | 7.20% | 5.45% | 4.22% | 1.72% | 1.59% | |||||||||||||||||||||
Class R3 Shares | 9/24/01 | 6.92% | 7.81% | 5.97% | 4.74% | 1.22% | 1.09% | |||||||||||||||||||||
Class I Shares | 2/01/00 | 7.28% | 8.42% | 6.52% | 5.27% | 0.72% | 0.59% | |||||||||||||||||||||
| Total Returns as of December 31, 2020* | ||||||||||||||||||||||||||||
| Inception Date | Cumulative | Average Annual | Expense Ratios** | |||||||||||||||||||||||||
| 6-Month | 1-Year | 5-Year | Since Inception | Gross | Net | |||||||||||||||||||||||
Class R6 Shares | 1/20/15 | 7.31% | 8.41% | 6.63% | 4.69% | 0.63% | 0.50% | |||||||||||||||||||||
| * | 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. Effective March 1, 2021, Class C Shares will automatically convert to Class A Shares eight 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, 2022 so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities (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. |
13
Yields as of December 31, 2020
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. 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 SEC 30-Day Yield because the fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
Nuveen Credit Income Fund
| Share Class | ||||||||||||||||
| Class A1 | Class C | Class R3 | Class I | |||||||||||||
Dividend Yield | 4.22% | 3.70% | 4.17% | 4.66% | ||||||||||||
SEC 30-Day Yield-Subsidized | 3.70% | 3.14% | 3.63% | 4.12% | ||||||||||||
SEC 30-Day Yield-Unsubsidized | 3.39% | 2.80% | 3.28% | 3.81% | ||||||||||||
Nuveen Strategic Income Fund
| Share Class | ||||||||||||||||||||
| Class A1 | Class C | Class R3 | Class R6 | Class I | ||||||||||||||||
Dividend Yield | 2.86% | 2.25% | 2.71% | 3.29% | 3.19% | |||||||||||||||
SEC 30-Day Yield-Subsidized | 2.10% | 1.47% | 1.95% | 2.52% | 2.45% | |||||||||||||||
SEC 30-Day Yield-Unsubsidized | 2.06% | 1.34% | 1.82% | 2.39% | 2.32% | |||||||||||||||
| 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. |
14
Holding Summaries as of December 31, 2020
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 Credit Income Fund
Fund Allocation
(% of net assets)
| Corporate Bonds | 59.2% | |||
| Asset-Backed and Mortgage-Backed Securities | 10.6% | |||
| Variable Rate Senior Loan Interests | 8.9% | |||
| Contingent Capital Securities | 5.2% | |||
| Exchange-Traded Funds | 5.0% | |||
| Sovereign Debt | 4.6% | |||
| $1,000 Par (or similar) Institutional Preferred | 2.7% | |||
| $25 Par (or similar) Retail Preferred | 1.1% | |||
| Common Stocks | 0.0% | |||
| Investments Purchased with Collateral from Securities Lending | 0.8% | |||
| Repurchase Agreements | 3.0% | |||
| Other Assets Less Liabilities | (1.1)% | |||
Net Assets | 100% |
Corporate Bonds: Industries
(% of total corporate bonds)
| Oil, Gas & Consumable Fuels | 15.4% | |||
Media | 7.1% | |||
Health Care Providers & Services | 7.0% | |||
Airlines | 5.9% | |||
Metals & Mining | | 4.8% | | |
Hotels, Restaurants & Leisure | 4.2% | |||
Diversified Financial Services | 3.9% | |||
Commercial Services & Supplies | 3.6% | |||
Auto Components | 3.2% | |||
Equity Real Estate Investment Trust | 3.2% | |||
Chemicals | 3.0% | |||
Diversified Telecommunication Services | 3.0% | |||
Communications Equipment | 2.8% | |||
Electric Utilities | 2.8% | |||
Aerospace & Defense | 2.5% | |||
Specialty Retail | 2.5% | |||
Independent Power & Renewable Electricity Producers | 2.0% | |||
Construction Materials | 1.7% | |||
Machinery | 1.7% | |||
Other1 | 19.7% | |||
Total | 100% | |||
Portfolio Credit Quality
(% of total long-term fixed-income investments)
| A | 2.4% | |||
BBB | 10.1% | |||
BB or Lower | 83.8% | |||
N/R (not rated) | 3.7% | |||
Total | 100% | |||
| 1 | See Portfolio of Investments for details on “other” Corporate Bonds: Industries. |
15
Holding Summaries as of December 31, 2020 (continued)
Nuveen Strategic Income Fund
Fund Allocation
(% of net assets)
| Corporate Bonds | 40.1% | |||
| Asset-Backed and Mortgage- Backed Securities | 31.2% | |||
| Variable Rate Senior Loan Interests | 8.2% | |||
| $1,000 Par (or similar) Institutional Preferred | 7.3% | |||
| Contingent Capital Securities | 3.5% | |||
| Sovereign Debt | 3.4% | |||
| Municipal Bonds | 1.4% | |||
| $25 Par (or similar) Retail Preferred | 0.9% | |||
| U.S. Government and Agency Obligations | 0.7% | |||
| Common Stocks | 0.2% | |||
| Investments Purchased with Collateral from Securities Lending | 0.5% | |||
| Repurchase Agreements | 8.3% | |||
| Other Assets Less Liabilities | (5.7)% | |||
Net Assets | 100% | |||
Corporate Bonds: Industries
(% of total corporate bonds)
| Banks | 17.3% | |||
| Oil, Gas & Consumable Fuels | 14.2% | |||
| Diversified Telecommunication Services | 4.7% | |||
| Media | 4.1% | |||
| Equity Real Estate Investment Trust | 3.9% | |||
| Chemicals | 3.5% | |||
| Electric Utilities | 3.4% | |||
| Capital Markets | 3.4% | |||
| Insurance | 2.9% | |||
| Consumer Finance | 2.8% | |||
| Metals & Mining | 2.7% | |||
| Specialty Retail | 2.3% | |||
| Pharmaceuticals | 2.3% | |||
| Diversified Financial Services | 2.3% | |||
| Health Care Providers & Services | 2.3% | |||
| Wireless Telecommunication Services | 2.1% | |||
| Road & Rail | 2.1% | |||
| Automobiles | 2.1% | |||
| Aerospace & Defense | 1.9% | |||
| Other1 | 19.6% | |||
Total | 100% |
Portfolio Credit Quality
(% of total long-term fixed-income investments)
| AAA | 13.8% | |||
| AA | 4.5% | |||
| A | 13.7% | |||
| BBB | 31.9% | |||
| BB or Lower | 31.3% | |||
| N/R (not rated) | 4.8% | |||
Total | 100% |
| 1 | See Portfolio of Investments for details on “other” Corporate Bonds: Industries. |
16
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended December 31, 2020.
The beginning of the period for the funds is July 1, 2020.
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 Credit Income 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 | $ | 1,117.99 | $ | 1,112.56 | $ | 1,117.42 | $ | 1,120.57 | ||||||||
Expenses Incurred During the Period | $ | 5.34 | $ | 9.32 | $ | 6.67 | $ | 4.01 | ||||||||
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 | $ | 1,020.16 | $ | 1,016.38 | $ | 1,018.90 | $ | 1,021.42 | ||||||||
Expenses Incurred During the Period | $ | 5.09 | $ | 8.89 | $ | 6.36 | $ | 3.82 | ||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.00%, 1.75%, 1.25% and 0.75% for Classes A, C, R3 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
17
Expense Examples (continued)
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 | $ | 1,070.68 | $ | 1,066.04 | $ | 1,069.16 | $ | 1,073.08 | $ | 1,072.78 | ||||||||||
Expenses Incurred During the Period | $ | 4.38 | $ | 8.28 | $ | 5.68 | $ | 2.66 | $ | 3.08 | ||||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
Ending Account Value | $ | 1,020.97 | $ | 1,017.19 | $ | 1,019.71 | $ | 1,022.63 | $ | 1,022.23 | ||||||||||
Expenses Incurred During the Period | $ | 4.28 | $ | 8.08 | $ | 5.55 | $ | 2.60 | $ | 3.01 | ||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.84%, 1.59%, 1.09%, 0.51%, 0.59% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
18
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
LONG-TERM INVESTMENTS – 97.3% | ||||||||||||||||||||
CORPORATE BONDS – 59.2% | ||||||||||||||||||||
| Aerospace & Defense – 1.5% | ||||||||||||||||||||
| $ | 1,000 | Bombardier Inc, 144A | 7.875% | 4/15/27 | B | $ | 919,440 | |||||||||||||
| 750 | Embraer Netherlands Finance BV, 144A | 6.950% | 1/17/28 | BB+ | 847,500 | |||||||||||||||
| 950 | Rolls-Royce PLC, 144A | 5.750% | 10/15/27 | BB– | 1,052,125 | |||||||||||||||
| 250 | TransDigm Inc, 144A | 8.000% | 12/15/25 | Ba3 | 276,647 | |||||||||||||||
| 2,950 | Total Aerospace & Defense | 3,095,712 | ||||||||||||||||||
| Airlines – 3.5% | ||||||||||||||||||||
| 1,000 | Air Canada 2020-2 Class A Pass Through Trust, 144A | 5.250% | 4/01/29 | A | 1,068,499 | |||||||||||||||
| 1,000 | Air Canada 2020-2 Class B Pass Through Trust, 144A | 9.000% | 10/01/25 | BBB– | 1,074,392 | |||||||||||||||
| 500 | British Airways 2020-1 Class A Pass Through Trust, 144A | 4.250% | 11/15/32 | A | 534,375 | |||||||||||||||
| 1,000 | British Airways 2020-1 Class B Pass Through Trust, 144A | 8.375% | 11/15/28 | BBB | 1,102,500 | |||||||||||||||
| 650 | Delta Air Lines Inc, 144A | 7.000% | 5/01/25 | Baa2 | 750,322 | |||||||||||||||
| 300 | Delta Air Lines Inc / SkyMiles IP Ltd, 144A | 4.750% | 10/20/28 | Baa1 | 327,332 | |||||||||||||||
| 1,400 | Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 144A | 6.500% | 6/20/27 | Baa3 | 1,505,000 | |||||||||||||||
| 900 | United Airlines 2020-1 Class A Pass Through Trust | 5.875% | 10/15/27 | A | 972,218 | |||||||||||||||
| 6,750 | Total Airlines | 7,334,638 | ||||||||||||||||||
| Auto Components – 1.9% | ||||||||||||||||||||
| 1,000 | Adient Global Holdings Ltd, 144A | 4.875% | 8/15/26 | B | 1,027,500 | |||||||||||||||
| 200 | Adient US LLC, 144A | 9.000% | 4/15/25 | Ba3 | 223,000 | |||||||||||||||
| 500 | American Axle & Manufacturing Inc | 6.250% | 3/15/26 | B2 | 517,500 | |||||||||||||||
| 150 | Clarios Global LP, 144A | 6.750% | 5/15/25 | B1 | 161,625 | |||||||||||||||
| 750 | Clarios Global LP / Clarios US Finance Co, 144A | 8.500% | 5/15/27 | CCC+ | 814,807 | |||||||||||||||
| 1,000 | IHO Verwaltungs GmbH, 144A, (cash 4.750%, PIK 5.500%) | 4.750% | 9/15/26 | BB+ | 1,036,250 | |||||||||||||||
| 250 | Meritor Inc, 144A | 4.500% | 12/15/28 | BB– | 256,250 | |||||||||||||||
| 3,850 | Total Auto Components | 4,036,932 | ||||||||||||||||||
| Automobiles – 0.6% | ||||||||||||||||||||
| 375 | Ford Motor Co | 8.500% | 4/21/23 | BB+ | 422,843 | |||||||||||||||
| 200 | Ford Motor Credit Co LLC | 4.000% | 11/13/30 | BB+ | 210,386 | |||||||||||||||
| 525 | PM General Purchaser LLC, 144A | 9.500% | 10/01/28 | B+ | 581,437 | |||||||||||||||
| 1,100 | Total Automobiles | 1,214,666 | ||||||||||||||||||
| Banks – 0.9% | ||||||||||||||||||||
| 750 | Akbank TAS, 144A | 5.125% | 3/31/25 | B+ | 757,500 | |||||||||||||||
| 375 | Freedom Mortgage Corp, 144A | 7.625% | 5/01/26 | B+ | 396,638 | |||||||||||||||
| 750 | Turkiye Vakiflar Bankasi TAO, 144A | 6.500% | 1/08/26 | B+ | 768,223 | |||||||||||||||
| 1,875 | Total Banks | 1,922,361 | ||||||||||||||||||
19
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Biotechnology – 0.1% | ||||||||||||||||||||
| $ | 175 | Emergent BioSolutions Inc, 144A | 3.875% | 8/15/28 | BB– | $ | 181,213 | |||||||||||||
| Building Products – 0.2% | ||||||||||||||||||||
| 350 | LBM Acquisition LLC, 144A | 6.250% | 1/15/29 | CCC+ | 364,116 | |||||||||||||||
| Chemicals – 1.8% | ||||||||||||||||||||
| 175 | Axalta Coating Systems LLC, 144A | 3.375% | 2/15/29 | BB– | 175,000 | |||||||||||||||
| 250 | Element Solutions Inc, 144A | 3.875% | 9/01/28 | BB– | 257,188 | |||||||||||||||
| 100 | HB Fuller Co | 4.250% | 10/15/28 | BB | 102,500 | |||||||||||||||
| 150 | Ingevity Corp, 144A | 3.875% | 11/01/28 | BB | 151,125 | |||||||||||||||
| 750 | NOVA Chemicals Corp, 144A | 4.875% | 6/01/24 | BB– | 780,937 | |||||||||||||||
| 800 | OCI NV, 144A | 4.625% | 10/15/25 | BB | 830,000 | |||||||||||||||
| 175 | Rayonier AM Products Inc, 144A | 7.625% | 1/15/26 | B1 | 182,481 | |||||||||||||||
| 750 | Sasol Financing USA LLC | 6.500% | 9/27/28 | BB | 812,250 | |||||||||||||||
| 500 | Tronox Finance PLC, 144A | 5.750% | 10/01/25 | B | 518,750 | |||||||||||||||
| 3,650 | Total Chemicals | 3,810,231 | ||||||||||||||||||
| Commercial Services & Supplies – 2.1% | ||||||||||||||||||||
| 1,000 | ADT Security Corp, 144A | 4.875% | 7/15/32 | BB– | 1,080,000 | |||||||||||||||
| 100 | AMN Healthcare Inc, 144A | 4.000% | 4/15/29 | BB– | 102,250 | |||||||||||||||
| 750 | Atento Luxco 1 SA, 144A | 6.125% | 8/10/22 | Ba3 | 737,820 | |||||||||||||||
| 500 | Compass Group Diversified Holdings LLC, 144A | 8.000% | 5/01/26 | B1 | 525,000 | |||||||||||||||
| 525 | Prime Security Services Borrower LLC / Prime Finance Inc, 144A | 3.375% | 8/31/27 | BB– | 521,063 | |||||||||||||||
| 1,450 | Prime Security Services Borrower LLC / Prime Finance Inc, 144A | 6.250% | 1/15/28 | B– | 1,556,705 | |||||||||||||||
| 4,325 | Total Commercial Services & Supplies | 4,522,838 | ||||||||||||||||||
| Communications Equipment – 1.7% | ||||||||||||||||||||
| 650 | CommScope Technologies LLC, 144A | 6.000% | 6/15/25 | B3 | 664,625 | |||||||||||||||
| 750 | CommScope Technologies LLC, 144A | 5.000% | 3/15/27 | B3 | 742,500 | |||||||||||||||
| 650 | Gray Television Inc, 144A | 4.750% | 10/15/30 | BB– | 659,750 | |||||||||||||||
| 1,325 | ViaSat Inc, 144A | 6.500% | 7/15/28 | BB– | 1,433,928 | |||||||||||||||
| 3,375 | Total Communications Equipment | 3,500,803 | ||||||||||||||||||
| Construction Materials – 1.0% | ||||||||||||||||||||
| 750 | Cemex SAB de CV, 144A | 5.200% | 9/17/30 | BB | 822,375 | |||||||||||||||
| 800 | Gates Global LLC / Gates Corp, 144A | 6.250% | 1/15/26 | B | 840,000 | |||||||||||||||
| 425 | US Concrete Inc, 144A | 5.125% | 3/01/29 | BB– | 437,750 | |||||||||||||||
| 1,975 | Total Construction Materials | 2,100,125 | ||||||||||||||||||
| Consumer Finance – 0.2% | ||||||||||||||||||||
| 425 | OneMain Finance Corp | 5.375% | 11/15/29 | BB– | 478,125 | |||||||||||||||
| Containers & Packaging – 0.5% | ||||||||||||||||||||
| 1,000 | Big River Steel LLC / BRS Finance Corp, 144A | 6.625% | 1/31/29 | B | 1,080,000 | |||||||||||||||
20
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Distributors – 0.8% | ||||||||||||||||||||
| $ | 1,700 | H&E Equipment Services Inc, 144A | 3.875% | 12/15/28 | BB– | $ | 1,712,801 | |||||||||||||
| Diversified Consumer Services – 0.4% | ||||||||||||||||||||
| 750 | frontdoor Inc, 144A | 6.750% | 8/15/26 | B | 799,688 | |||||||||||||||
| Diversified Financial Services – 2.3% | ||||||||||||||||||||
| 750 | DAE Sukuk Difc Ltd, 144A | 3.750% | 2/15/26 | Baa3 | 768,750 | |||||||||||||||
| 500 | Genesis Energy LP / Genesis Energy Finance Corp | 7.750% | 2/01/28 | B+ | 478,750 | |||||||||||||||
| 1,000 | Icahn Enterprises LP / Icahn Enterprises Finance Corp | 6.375% | 12/15/25 | BB | 1,034,500 | |||||||||||||||
| 750 | Muthoot Finance Ltd, 144A | 4.400% | 9/02/23 | BB | 762,747 | |||||||||||||||
| 750 | Navient Corp | 0.061% | 3/25/24 | Ba3 | 800,625 | |||||||||||||||
| 250 | Ursa Re II Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 3.750% spread), (4) | 3.808% | 12/07/23 | N/R | 250,850 | |||||||||||||||
| 750 | Ursa Re II Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 6.250% spread), (4) | 6.308% | 12/07/23 | N/R | 757,725 | |||||||||||||||
| 4,750 | Total Diversified Financial Services | 4,853,947 | ||||||||||||||||||
| Diversified Telecommunication Services – 1.8% | ||||||||||||||||||||
| 1,500 | Avaya Inc, 144A | 6.125% | 9/15/28 | BB– | 1,602,390 | |||||||||||||||
| 1,000 | Embarq Corp | 7.995% | 6/01/36 | BB | 1,233,450 | |||||||||||||||
| 275 | GCI LLC, 144A | 4.750% | 10/15/28 | B | 293,301 | |||||||||||||||
| 600 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 639,884 | |||||||||||||||
| 3,375 | Total Diversified Telecommunication Services | 3,769,025 | ||||||||||||||||||
| Electric Utilities – 1.6% | ||||||||||||||||||||
| 750 | Inkia Energy Ltd, 144A | 5.875% | 11/09/27 | BB | 812,857 | |||||||||||||||
| 750 | Pampa Energia SA | 7.500% | 1/24/27 | CCC+ | 665,625 | |||||||||||||||
| 250 | Pattern Energy Operations LP / Pattern Energy Operations Inc, 144A | 4.500% | 8/15/28 | BB– | 263,750 | |||||||||||||||
| 2,100 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B | 1,711,500 | |||||||||||||||
| 3,850 | Total Electric Utilities | 3,453,732 | ||||||||||||||||||
| Energy Equipment & Services – 0.6% | ||||||||||||||||||||
| 575 | Archrock Partners LP / Archrock Partners Finance Corp, 144A | 6.250% | 4/01/28 | B+ | 598,552 | |||||||||||||||
| 775 | Genesis Energy LP / Genesis Energy Finance Corp | 8.000% | 1/15/27 | B+ | 771,125 | |||||||||||||||
| 2,704 | Metro Exploration Holding Corp, (WI/DD) | 0.000% | 2/15/27 | N/R | 270 | |||||||||||||||
| 447 | Metro Exploration Holding Corp, (WI/DD), (5) | 0.000% | 2/15/27 | N/R | 5 | |||||||||||||||
| 4,501 | Total Energy Equipment & Services | 1,369,952 | ||||||||||||||||||
| Entertainment – 0.5% | ||||||||||||||||||||
| 1,000 | Cinemark USA Inc | 5.125% | 12/15/22 | B | 980,000 | |||||||||||||||
| 125 | Cinemark USA Inc, 144A | 8.750% | 5/01/25 | BB+ | 135,000 | |||||||||||||||
| 1,125 | Total Entertainment | 1,115,000 | ||||||||||||||||||
| Equity Real Estate Investment Trust – 1.9% | ||||||||||||||||||||
| 500 | Iron Mountain Inc, 144A | 4.875% | 9/15/27 | BB– | 522,500 | |||||||||||||||
| 600 | iStar Inc | 4.750% | 10/01/24 | BB | 607,500 | |||||||||||||||
21
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Equity Real Estate Investment Trust (continued) | ||||||||||||||||||||
| $ | 750 | MPH Acquisition Holdings LLC, 144A, (3) | 5.750% | 11/01/28 | B– | $ | 733,125 | |||||||||||||
| 700 | Retail Properties of America Inc | 4.750% | 9/15/30 | BBB– | 742,828 | |||||||||||||||
| 250 | Starwood Property Trust Inc, 144A | 5.500% | 11/01/23 | Ba3 | 261,250 | |||||||||||||||
| 1,000 | Uniti Group LP / Uniti Fiber Holdings Inc / CSL Capital LLC, 144A | 7.875% | 2/15/25 | BB+ | 1,074,210 | |||||||||||||||
| 3,800 | Total Equity Real Estate Investment Trust | 3,941,413 | ||||||||||||||||||
| Food & Staples Retailing – 1.0% | ||||||||||||||||||||
| 225 | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 144A | 5.875% | 2/15/28 | BB– | 244,843 | |||||||||||||||
| 100 | Chobani LLC / Chobani Finance Corp Inc, 144A | 4.625% | 11/15/28 | B1 | 101,500 | |||||||||||||||
| 1,150 | Del Monte Foods Inc, 144A | 11.875% | 5/15/25 | CCC+ | 1,305,250 | |||||||||||||||
| 350 | United Natural Foods Inc, 144A | 6.750% | 10/15/28 | B3 | 366,180 | |||||||||||||||
| 1,825 | Total Food & Staples Retailing | 2,017,773 | ||||||||||||||||||
| Food Products – 0.4% | ||||||||||||||||||||
| 775 | Ulker_Biskuvi_Sanayi_AS, 144A | 6.950% | 10/30/25 | BB- | 837,558 | |||||||||||||||
| Health Care Providers & Services – 4.2% | ||||||||||||||||||||
| 450 | CHS/Community Health Systems Inc, 144A | 5.625% | 3/15/27 | B | 483,862 | |||||||||||||||
| 765 | CHS/Community Health Systems Inc, 144A | 8.000% | 12/15/27 | B | 830,025 | |||||||||||||||
| 125 | CHS/Community Health Systems Inc, 144A | 6.000% | 1/15/29 | B | 135,033 | |||||||||||||||
| 2,000 | Global Medical Response Inc, 144A | 6.500% | 10/01/25 | B | 2,090,000 | |||||||||||||||
| 775 | LifePoint Health Inc, 144A | 5.375% | 1/15/29 | CCC+ | 774,457 | |||||||||||||||
| 750 | MEDNAX Inc, 144A | 6.250% | 1/15/27 | B+ | 804,345 | |||||||||||||||
| 1,150 | RegionalCare Hospital Partners Holdings Inc / LifePoint Health Inc, 144A | 9.750% | 12/01/26 | CCC+ | 1,267,875 | |||||||||||||||
| 150 | Tenet Healthcare Corp, 144A | 4.625% | 6/15/28 | BB– | 157,125 | |||||||||||||||
| 2,125 | Tenet Healthcare Corp, 144A | 6.125% | 10/01/28 | B | 2,217,767 | |||||||||||||||
| 8,290 | Total Health Care Providers & Services | 8,760,489 | ||||||||||||||||||
| Hotels, Restaurants & Leisure – 2.5% | ||||||||||||||||||||
| 275 | Arcos Dorados Holdings Inc, 144A | 5.875% | 4/04/27 | Ba2 | 289,440 | |||||||||||||||
| 825 | Carnival Corp, 144A | 7.625% | 3/01/26 | B | 898,829 | |||||||||||||||
| 500 | Cedar Fair LP / Canada’s Wonderland Co / Magnum Management Corp / Millennium Op, 144A | 5.500% | 5/01/25 | Ba2 | 521,250 | |||||||||||||||
| 100 | Hilton Domestic Operating Co Inc, 144A | 5.750% | 5/01/28 | BB | 108,750 | |||||||||||||||
| 775 | International Game Technology PLC, 144A | 5.250% | 1/15/29 | BB | 835,063 | |||||||||||||||
| 250 | MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc, 144A | 4.625% | 6/15/25 | BB+ | 267,750 | |||||||||||||||
| 500 | Scientific Games International Inc, 144A | 8.625% | 7/01/25 | B– | 547,500 | |||||||||||||||
| 500 | Scientific Games International Inc, 144A | 5.000% | 10/15/25 | B+ | 515,945 | |||||||||||||||
| 425 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp, 144A | 5.250% | 5/15/27 | BB– | 438,069 | |||||||||||||||
| 750 | Wynn Macau Ltd, 144A | 5.625% | 8/26/28 | BB– | 786,041 | |||||||||||||||
| 4,900 | Total Hotels, Restaurants & Leisure | 5,208,637 | ||||||||||||||||||
22
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Household Durables – 0.6% | ||||||||||||||||||||
| $ | 375 | CD&R Smokey Buyer Inc, 144A | 6.750% | 7/15/25 | B | $ | 400,781 | |||||||||||||
| 225 | Kronos Acquisition Holdings Inc / KIK Custom Products Inc, 144A | 7.000% | 12/31/27 | CCC | 235,580 | |||||||||||||||
| 675 | Mattamy Group Corp, 144A | 5.250% | 12/15/27 | BB | 713,812 | |||||||||||||||
| 1,275 | Total Household Durables | 1,350,173 | ||||||||||||||||||
| Independent Power & Renewable Electricity Producers – 1.2% | ||||||||||||||||||||
| 750 | Azure Power Solar Energy Pvt Ltd, 144A | 5.650% | 12/24/24 | Ba1 | 798,750 | |||||||||||||||
| 1,000 | EnfraGen Energia Sur SA / EnfraGen Spain SA / Prime Energia SpA, 144A | 5.375% | 12/30/30 | Ba3 | 1,037,500 | |||||||||||||||
| 680 | UEP Penonome II SA, 144A | 6.500% | 10/01/38 | BB | 708,404 | |||||||||||||||
| 2,430 | Total Independent Power & Renewable Electricity Producers |
| 2,544,654 | |||||||||||||||||
| Industrial Conglomerates – 0.1% | ||||||||||||||||||||
| 250 | Stena International SA, 144A | 6.125% | 2/01/25 | BB– | 246,875 | |||||||||||||||
| Insurance – 0.9% | ||||||||||||||||||||
| 825 | Acrisure LLC / Acrisure Finance Inc, 144A | 10.125% | 8/01/26 | CCC+ | 946,687 | |||||||||||||||
| 275 | Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issuer, 144A | 4.250% | 10/15/27 | B | 281,188 | |||||||||||||||
| 100 | AssuredPartners Inc, 144A | 5.625% | 1/15/29 | CCC+ | 104,375 | |||||||||||||||
| 550 | Residential Reinsurance 2020 Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 6.250% spread), (4) | 6.308% | 12/06/24 | N/R | 553,300 | |||||||||||||||
| 1,750 | Total Insurance | 1,885,550 | ||||||||||||||||||
| Interactive Media & Services – 0.1% | ||||||||||||||||||||
| 100 | Arches Buyer Inc, 144A | 4.250% | 6/01/28 | B1 | 101,270 | |||||||||||||||
| 100 | Arches Buyer Inc, 144A | 6.125% | 12/01/28 | CCC+ | 103,270 | |||||||||||||||
| 200 | Total Interactive Media & Services | 204,540 | ||||||||||||||||||
| Internet & Direct Marketing Retail – 0.2% | ||||||||||||||||||||
| 475 | B2W Digital Lux Sarl, 144A, (3) | 4.375% | 12/20/30 | Ba1 | 491,625 | |||||||||||||||
| Internet Software & Services – 0.5% | ||||||||||||||||||||
| 950 | Rackspace Technology Global Inc, 144A | 5.375% | 12/01/28 | B– | 995,315 | |||||||||||||||
| IT Services – 0.1% | ||||||||||||||||||||
| 150 | Austin BidCo Inc, 144A | 7.125% | 12/15/28 | CCC+ | 156,563 | |||||||||||||||
| 150 | Science Applications International Corp, 144A | 4.875% | 4/01/28 | BB– | 159,000 | |||||||||||||||
| 300 | Total IT Services | 315,563 | ||||||||||||||||||
| Leisure Products – 0.4% | ||||||||||||||||||||
| 775 | Academy Ltd, 144A | 6.000% | 11/15/27 | B | 811,813 | |||||||||||||||
| Machinery – 1.0% | ||||||||||||||||||||
| 1,000 | Dana Financing Luxembourg Sarl, 144A | 6.500% | 6/01/26 | BB+ | 1,046,250 | |||||||||||||||
| 1,000 | Maxim Crane Works Holdings Capital LLC, 144A | 10.125% | 8/01/24 | B– | 1,041,250 | |||||||||||||||
| 2,000 | Total Machinery | 2,087,500 | ||||||||||||||||||
| Media – 4.2% | ||||||||||||||||||||
| 950 | Altice Financing SA, 144A | 5.000% | 1/15/28 | B | 973,403 | |||||||||||||||
23
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Media (continued) | ||||||||||||||||||||
| $ | 1,000 | Altice France SA/France, 144A | 7.375% | 5/01/26 | B | $ | 1,052,500 | |||||||||||||
| 200 | Cablevision Lightpath LLC, 144A | 3.875% | 9/15/27 | B+ | 201,250 | |||||||||||||||
| 1,000 | Cablevision Lightpath LLC, 144A | 5.625% | 9/15/28 | B | 1,046,250 | |||||||||||||||
| 600 | CCO Holdings LLC / CCO Holdings Capital Corp, 144A | 4.250% | 2/01/31 | BB+ | 632,316 | |||||||||||||||
| 850 | CCO Holdings LLC / CCO Holdings Capital Corp, 144A | 4.500% | 5/01/32 | BB | 907,562 | |||||||||||||||
| 750 | Clear Channel Worldwide Holdings Inc, 144A | 5.125% | 8/15/27 | B1 | 757,500 | |||||||||||||||
| 750 | CSC Holdings LLC, 144A | 4.625% | 12/01/30 | B | 782,812 | |||||||||||||||
| 1,650 | DISH DBS Corp | 7.375% | 7/01/28 | B2 | 1,757,250 | |||||||||||||||
| 225 | Lamar Media Corp | 4.875% | 1/15/29 | BB– | 239,063 | |||||||||||||||
| 500 | Radiate Holdco LLC / Radiate Finance Inc, 144A | 6.500% | 9/15/28 | CCC+ | 525,000 | |||||||||||||||
| 8,475 | Total Media | 8,874,906 | ||||||||||||||||||
| Metals & Mining – 2.8% | ||||||||||||||||||||
| 1,000 | Cleveland-Cliffs Inc, 144A | 9.875% | 10/17/25 | BB | 1,176,250 | |||||||||||||||
| 1,100 | First Quantum Minerals Ltd, 144A | 7.500% | 4/01/25 | B3 | 1,145,375 | |||||||||||||||
| 750 | First Quantum Minerals Ltd, 144A | 6.875% | 10/15/27 | B– | 813,750 | |||||||||||||||
| 800 | Hudbay Minerals Inc, 144A | 6.125% | 4/01/29 | B+ | 862,000 | |||||||||||||||
| 750 | Indika Energy Capital IV Pte Ltd, 144A | 8.250% | 10/22/25 | Ba3 | 811,103 | |||||||||||||||
| 720 | Joseph T Ryerson & Son Inc, 144A | 8.500% | 8/01/28 | B | 815,400 | |||||||||||||||
| 325 | Metinvest BV, 144A | 7.650% | 10/01/27 | BB– | 353,437 | |||||||||||||||
| 5,445 | Total Metals & Mining | 5,977,315 | ||||||||||||||||||
| Multiline Retail – 0.4% | ||||||||||||||||||||
| 750 | JSM Global Sarl, 144A | 4.750% | 10/20/30 | Ba1 | 807,195 | |||||||||||||||
| Oil, Gas & Consumable Fuels – 9.1% | ||||||||||||||||||||
| 675 | Antero Resources Corp, 144A, (WI/DD) | 8.375% | 7/15/26 | B | 688,966 | |||||||||||||||
| 275 | Comstock Resources Inc | 9.750% | 8/15/26 | B+ | 294,937 | |||||||||||||||
| 110 | Continental Resources Inc/OK | 5.000% | 9/15/22 | BBB– | 110,165 | |||||||||||||||
| 1,200 | Continental Resources Inc/OK | 4.500% | 4/15/23 | BBB– | 1,237,320 | |||||||||||||||
| 1,140 | Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp, 144A | 5.625% | 5/01/27 | BB– | 1,128,600 | |||||||||||||||
| 150 | EnLink Midstream LLC, 144A | 5.625% | 1/15/28 | BB+ | 153,223 | |||||||||||||||
| 500 | EQM Midstream Partners LP, 144A | 6.000% | 7/01/25 | BB | 547,500 | |||||||||||||||
| 800 | EQM Midstream Partners LP, 144A | 6.500% | 7/01/27 | BB | 900,828 | |||||||||||||||
| 750 | Geopark Ltd, 144A | 6.500% | 9/21/24 | B+ | 778,125 | |||||||||||||||
| 200 | Global Partners LP / GLP Finance Corp | 7.000% | 8/01/27 | B+ | 214,000 | |||||||||||||||
| 800 | Kosmos Energy Ltd, 144A | 7.125% | 4/04/26 | B+ | 776,000 | |||||||||||||||
| 750 | Leviathan Bond Ltd, 144A | 6.125% | 6/30/25 | BB | 823,146 | |||||||||||||||
| 500 | Moss Creek Resources Holdings Inc, 144A | 10.500% | 5/15/27 | B– | 400,000 | |||||||||||||||
| 815 | Murphy Oil Corp | 5.875% | 12/01/27 | BB+ | 802,775 | |||||||||||||||
| 675 | Occidental Petroleum Corp | 5.875% | 9/01/25 | Ba2 | 718,875 | |||||||||||||||
| 200 | Occidental Petroleum Corp | 5.500% | 12/01/25 | Ba2 | 208,522 | |||||||||||||||
| 1,000 | Occidental Petroleum Corp | 8.500% | 7/15/27 | Ba2 | 1,154,050 | |||||||||||||||
24
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||
| $ | 900 | Occidental Petroleum Corp | 8.875% | 7/15/30 | Ba2 | $ | 1,056,375 | |||||||||||||
| 175 | Occidental Petroleum Corp | 6.125% | 1/01/31 | Ba2 | 187,285 | |||||||||||||||
| 750 | Occidental Petroleum Corp | 6.450% | 9/15/36 | Ba2 | 785,250 | |||||||||||||||
| 750 | Peru LNG Srl, 144A | 5.375% | 3/22/30 | BB– | 669,000 | |||||||||||||||
| 750 | Petrobras Global Finance BV | 5.600% | 1/03/31 | Ba2 | 861,975 | |||||||||||||||
| 750 | Petroleos Mexicanos | 5.350% | 2/12/28 | BBB | 739,695 | |||||||||||||||
| 800 | Southwestern Energy Co | 7.500% | 4/01/26 | BB | 839,200 | |||||||||||||||
| 225 | Sunoco LP / Sunoco Finance Corp, 144A | 4.500% | 5/15/29 | BB | 234,000 | |||||||||||||||
| 1,000 | Targa Resources Partners LP / Targa Resources Partners Finance Corp | 5.875% | 4/15/26 | BB | 1,060,220 | |||||||||||||||
| 750 | USA Compression Partners LP / USA Compression Finance Corp | 6.875% | 9/01/27 | BB– | 800,685 | |||||||||||||||
| 1,000 | Western Midstream Operating LP | 5.050% | 2/01/30 | BB | 1,112,500 | |||||||||||||||
| 18,390 | Total Oil, Gas & Consumable Fuels | 19,283,217 | ||||||||||||||||||
| Pharmaceuticals – 0.6% | ||||||||||||||||||||
| 350 | Bausch Health Cos Inc, 144A | 5.000% | 1/30/28 | B | 360,689 | |||||||||||||||
| 450 | Bausch Health Cos Inc, 144A | 6.250% | 2/15/29 | B | 488,813 | |||||||||||||||
| 450 | Bausch Health Cos Inc, 144A | 5.250% | 1/30/30 | B | 471,375 | |||||||||||||||
| 1,250 | Total Pharmaceuticals | 1,320,877 | ||||||||||||||||||
| Real Estate Management & Development – 0.3% | ||||||||||||||||||||
| 750 | China Evergrande Group | 8.250% | 3/23/22 | B2 | 703,108 | |||||||||||||||
| Specialty Retail – 1.5% | ||||||||||||||||||||
| 150 | L Brands Inc, 144A | 9.375% | 7/01/25 | B+ | 184,500 | |||||||||||||||
| 550 | L Brands Inc, 144A | 6.625% | 10/01/30 | B+ | 611,875 | |||||||||||||||
| 250 | PetSmart Inc, 144A | 5.875% | 6/01/25 | B1 | 256,875 | |||||||||||||||
| 1,000 | Staples Inc, 144A | 7.500% | 4/15/26 | B1 | 1,044,270 | |||||||||||||||
| 1,000 | Staples Inc, 144A | 10.750% | 4/15/27 | B3 | 995,000 | |||||||||||||||
| 2,950 | Total Specialty Retail | 3,092,520 | ||||||||||||||||||
| Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||||||||||||
| 500 | Diebold Nixdorf Inc, (3) | 8.500% | 4/15/24 | CCC | 506,250 | |||||||||||||||
| 500 | Diebold Nixdorf Inc, 144A | 9.375% | 7/15/25 | B– | 560,000 | |||||||||||||||
| 1,000 | Total Technology Hardware, Storage & Peripherals | 1,066,250 | ||||||||||||||||||
| Thrifts & Mortgage Finance – 0.4% | ||||||||||||||||||||
| 750 | United Shore Financial Services LLC, 144A | 5.500% | 11/15/25 | Ba3 | 791,250 | |||||||||||||||
| Trading Companies & Distributors – 0.2% | ||||||||||||||||||||
| 500 | Beacon Roofing Supply Inc, 144A | 4.875% | 11/01/25 | B– | 511,875 | |||||||||||||||
| Wireless Telecommunication Services – 0.1% | ||||||||||||||||||||
| 200 | Millicom International Cellular SA, 144A | 4.500% | 4/27/31 | BB+ | 216,000 | |||||||||||||||
| $ | 122,306 | Total Corporate Bonds (cost $119,827,384) | 125,059,896 | |||||||||||||||||
25
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 10.6% |
| |||||||||||||||||||
| $ | 500 | Aimco CLO 11 Ltd, 144A, (3-Month LIBOR reference rate + 7.250% spread), (4) | 7.475% | 10/15/31 | BB– | $ | 500,909 | |||||||||||||
| 250 | Aimco CLO 12 Ltd, 144A (WI/DD) | 1.000% | 1/17/32 | N/R | 250,051 | |||||||||||||||
| 750 | Avis Budget Rental Car Funding AESOP LLC, 144A | 4.950% | 3/20/25 | BBB | 790,488 | |||||||||||||||
| 1,000 | Battalion CLO VIII Ltd, 144A, (3-Month LIBOR reference rate + 6.750% spread), (4) | 6.968% | 7/18/30 | Ba2 | 1,000,664 | |||||||||||||||
| 380 | BBCMS 2018-CHRS Mortgage Trust, 144A | 4.267% | 8/05/38 | A– | 340,651 | |||||||||||||||
| 1,000 | Benchmark 2020-B18 Mortgage Trust, 144A | 4.139% | 7/15/53 | B– | 1,005,985 | |||||||||||||||
| 500 | Bojangles Issuer LLC, 144A | 3.832% | 10/20/50 | N/R | 510,775 | |||||||||||||||
| 625 | CIFC Funding Ltd, 144A, (3-Month LIBOR reference rate + 4.250% spread), (4) | 4.532% | 8/24/32 | BBB– | 630,731 | |||||||||||||||
| 625 | CIFC Funding Ltd, 144A, (3-Month LIBOR reference rate + 7.635% spread), (4) | 7.917% | 8/24/32 | BB– | 631,252 | |||||||||||||||
| 1,000 | COMM 2014-CCRE15 Mortgage Trust, 144A | 4.742% | 2/10/47 | Baa3 | 1,012,084 | |||||||||||||||
| 325 | COMM 2015-CCRE22 Mortgage Trust, 144A | 4.106% | 3/10/48 | BBB– | 313,916 | |||||||||||||||
| 1,000 | Credit Suisse Mortgage Capital Certificates 2019-ICE4, 144A, (1-Month LIBOR reference rate + 2.150% spread), (4) | 2.309% | 5/15/36 | Ba3 | 994,133 | |||||||||||||||
| 2,276 | Freddie Mac Multifamily Structured Pass Through Certificates, (I/O) | 2.805% | 10/25/55 | N/R | 499,779 | |||||||||||||||
| 750 | Freddie Mac STACR Remic Trust 2020-HQA2, 144A, (1-Month LIBOR reference rate + 3.100% spread), (4) | 3.248% | 3/25/50 | Ba2 | 755,157 | |||||||||||||||
| 649 | HIN Timeshare Trust 2020-A, 144A | 5.500% | 10/09/39 | BB | 667,402 | |||||||||||||||
| 834 | HIN Timeshare Trust 2020-A, 144A | 6.500% | 10/09/39 | B | 846,662 | |||||||||||||||
| 365 | Hudson Yards, 144A | 2.943% | 12/10/41 | N/R | 334,567 | |||||||||||||||
| 800 | JPMBB Commercial Mortgage Securities Trust 2014-C22 | 4.554% | 9/15/47 | A– | 740,517 | |||||||||||||||
| 500 | JPMBB Commercial Mortgage Securities Trust 2015-C29 | 4.197% | 5/15/48 | A– | 489,695 | |||||||||||||||
| 250 | Mosaic Solar Loan Trust 2020-2, 144A | 3.000% | 8/20/46 | N/R | 249,830 | |||||||||||||||
| 575 | Mosaic Solar Loan Trust 2020-2, 144A | 5.420% | 8/20/46 | N/R | 575,375 | |||||||||||||||
| 1,067 | MVW 2020-1 LLC, 144A | 4.210% | 10/20/37 | BBB | 1,127,080 | |||||||||||||||
| 681 | MVW 2020-1 LLC, 144A | 7.140% | 10/20/37 | BB | 721,525 | |||||||||||||||
| 500 | Neuberger Berman Loan Advisers CLO 35 Ltd, 144A, (3-Month LIBOR reference rate + 7.000% spread), (4) | 7.218% | 1/19/33 | BB– | 502,169 | |||||||||||||||
| 844 | Sierra Timeshare 2020-2 Receivables Funding LLC, 144A | 3.510% | 7/20/37 | BBB | 870,178 | |||||||||||||||
| 1,055 | Sierra Timeshare 2020-2 Receivables Funding LLC, 144A | 6.590% | 7/20/37 | BB | 1,093,025 | |||||||||||||||
| 589 | S-Jets 2017-1 Ltd, 144A | 5.682% | 8/15/42 | BB | 512,195 | |||||||||||||||
| 500 | TCW CLO 2019-1 AMR Ltd, 144A, (3-Month LIBOR reference rate + 6.750% spread), (4) | 6.971% | 2/15/29 | BB– | 500,143 | |||||||||||||||
| 1,000 | Tesla Auto Lease Trust 2020-A, 144A | 4.640% | 8/20/24 | Ba2 | 1,047,625 | |||||||||||||||
| 200 | Verus Securitization Trust 2019-2, 144A | 3.781% | 5/25/59 | BBB– | 200,395 | |||||||||||||||
| 975 | Vivint Solar Financing V LLC, 144A | 7.370% | 4/30/48 | N/R | 1,037,047 | |||||||||||||||
| 1,218 | VR Funding LLC, 144A | 6.420% | 11/15/50 | N/R | 1,175,379 | |||||||||||||||
| 485 | WFRBS Commercial Mortgage Trust 2013-C18 | 4.862% | 12/15/46 | A– | 466,201 | |||||||||||||||
| $ | 24,068 | Total Asset-Backed and Mortgage-Backed Securities (cost $21,750,555) |
| 22,393,585 | ||||||||||||||||
26
| Principal Amount (000) | Description (1) | Coupon (6) | Reference Rate (6) | Spread (6) | Maturity (7) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 8.9% (6) |
| |||||||||||||||||||||||||||
| Airlines – 0.2% | ||||||||||||||||||||||||||||
| $ | 500 | Delta Air Lines SkyMiles, Term Loan B | 4.750% | 3-Month LIBOR | 3.750% | 10/20/27 | Baa1 | $ | 519,687 | |||||||||||||||||||
| Chemicals – 0.2% | ||||||||||||||||||||||||||||
| 399 | Lummus Technology, Term Loan | 4.147% | 1-Month LIBOR | 4.000% | 6/30/27 | B+ | 399,748 | |||||||||||||||||||||
| Commercial Services & Supplies – 0.6% | ||||||||||||||||||||||||||||
| 375 | AECOM Management Services Inc., Incremental Term Loan | 5.500% | 3-Month LIBOR | 4.750% | 1/31/27 | B1 | 378,750 | |||||||||||||||||||||
| 319 | GFL Environmental, Term Loan B | 3.500% | 3-Month LIBOR | 3.000% | 5/31/25 | BB– | 319,876 | |||||||||||||||||||||
| 675 | PAE Holding Corp, New Term Loan B | 5.250% | 3-Month LIBOR | 4.500% | 10/19/27 | B | 678,588 | |||||||||||||||||||||
| 1,369 | Total Commercial Services & Supplies |
| 1,377,214 | |||||||||||||||||||||||||
| Containers & Packaging – 0.1% | ||||||||||||||||||||||||||||
| 137 | Graham Packaging Co Inc, Term Loan | 4.500% | 1-Month LIBOR | 3.750% | 8/04/27 | B1 | 137,813 | |||||||||||||||||||||
| Distributors – 0.4% | ||||||||||||||||||||||||||||
| 746 | Atotech Alpha 3 BV, Term Loan B1 | 4.000% | 3-Month LIBOR | 3.000% | 1/31/24 | B2 | 744,338 | |||||||||||||||||||||
| Diversified Financial Services – 0.5% | ||||||||||||||||||||||||||||
| 997 | IG Investments Holdings, LLC, Term Loan, First Lien | 5.000% | 3-Month LIBOR | 4.000% | 5/23/25 | B2 | 996,944 | |||||||||||||||||||||
| Electric Utilities – 0.1% | ||||||||||||||||||||||||||||
| 249 | PG&E Corp, Term Loan | 5.500% | 1-Month LIBOR | 4.500% | 6/23/25 | BB | 252,108 | |||||||||||||||||||||
| Food & Staples Retailing – 0.2% | ||||||||||||||||||||||||||||
| 499 | Shearer’s Foods LLC., Term Loan B | 4.750% | 3-Month LIBOR | 4.000% | 9/23/27 | B2 | 499,725 | |||||||||||||||||||||
| Health Care Providers & Services – 0.9% | ||||||||||||||||||||||||||||
| 1,250 | ADMI Corp, (WI/DD) | TBD | TBD | TBD | TBD | B | 1,253,437 | |||||||||||||||||||||
| 175 | Pluto Acquisition I Inc, Incremental Term Loan B | 5.500% | 1-Month LIBOR | 5.000% | 6/20/26 | B2 | 175,656 | |||||||||||||||||||||
| 375 | US Radiology Specialists, Inc., Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B– | 373,476 | |||||||||||||||||||||
| 1,800 | Total Health Care Providers & Services |
| 1,802,569 | |||||||||||||||||||||||||
| Insurance – 0.2% | ||||||||||||||||||||||||||||
| 455 | OneDigital Borrower LLC, Term Loan | 5.250% | 3-Month LIBOR | 4.500% | 10/29/27 | N/R | 456,785 | |||||||||||||||||||||
| 45 | OneDigital Borrower LLC, Delayed Draw Term Loan (11) | 5.250% | 3-Month LIBOR | 4.500% | 10/29/27 | N/R | 45,090 | |||||||||||||||||||||
| 500 | Total Insurance | 501,875 | ||||||||||||||||||||||||||
| Internet & Direct Marketing Retail – 0.2% | ||||||||||||||||||||||||||||
| 475 | 1-800 Contacts, Term Loan, First Lien | 4.500% | 6-Month LIBOR | 3.750% | 11/08/27 | B | 476,225 | |||||||||||||||||||||
| IT Services – 0.4% | ||||||||||||||||||||||||||||
| 867 | Syniverse Holdings, Inc., Term Loan C, (DDI) | 6.000% | 3-Month LIBOR | 5.000% | 3/09/23 | CCC+ | 789,860 | |||||||||||||||||||||
| Leisure Products – 0.2% | ||||||||||||||||||||||||||||
| 498 | Party City Holdings Inc, Term Loan B | 3.250% | 3-Month LIBOR | 2.500% | 8/19/22 | CCC | 462,756 | |||||||||||||||||||||
27
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon (6) | Reference Rate (6) | Spread (6) | Maturity (7) | Ratings (2) | Value | |||||||||||||||||||||
| Machinery – 0.9% | ||||||||||||||||||||||||||||
| $ | 950 | Alliance Laundry Systems LLC, Term Loan B | 4.250% | 3-Month LIBOR | 3.500% | 10/08/27 | B | $ | 951,273 | |||||||||||||||||||
| 999 | Blount International Inc., Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B1 | 1,006,215 | |||||||||||||||||||||
| 1,949 | Total Machinery | 1,957,488 | ||||||||||||||||||||||||||
| Media – 0.1% | ||||||||||||||||||||||||||||
| 125 | Radiate Holdco LLC, Term Loan B | 4.250% | 1-Month LIBOR | 3.500% | 9/25/26 | B1 | 125,371 | |||||||||||||||||||||
| Multiline Retail – 0.2% | ||||||||||||||||||||||||||||
| 398 | Bass Pro Group LLC, Term Loan B | 5.750% | 1-Month LIBOR | 5.000% | 9/25/24 | B+ | 399,864 | |||||||||||||||||||||
| Pharmaceuticals – 1.0% | ||||||||||||||||||||||||||||
| 1,745 | Endo Health Solutions, Inc., Term Loan B | 5.000% | 3-Month LIBOR | 4.250% | 4/29/24 | B+ | 1,723,660 | |||||||||||||||||||||
| 300 | Milano, Term Loan B | 4.750% | 3-Month LIBOR | 4.000% | 10/01/27 | B+ | 300,687 | |||||||||||||||||||||
| 2,045 | Total Pharmaceuticals | 2,024,347 | ||||||||||||||||||||||||||
| Professional Services – 0.8% | ||||||||||||||||||||||||||||
| 747 | Da Vinci Purchaser Corp, Term Loan | 5.000% | 3-Month LIBOR | 4.000% | 11/26/26 | B | 750,332 | |||||||||||||||||||||
| 988 | Dun & Bradstreet Corp.,Term Loan, First Lien | 3.898% | 1-Month LIBOR | 3.750% | 2/08/26 | BB+ | 989,843 | |||||||||||||||||||||
| 1,735 | Total Professional Services |
| 1,740,175 | |||||||||||||||||||||||||
| Real Estate Management & Development – 0.4% | ||||||||||||||||||||||||||||
| 750 | TNT Crane & Rigging, Inc., Exit Term Loan | 7.500% | 3-Month LIBOR | 6.500% | 10/16/24 | B+ | 773,437 | |||||||||||||||||||||
| Semiconductors & Semiconductor Equipment – 0.1% | ||||||||||||||||||||||||||||
| 500 | Lumileds, Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | CCC | 290,053 | |||||||||||||||||||||
| Software – 0.4% | ||||||||||||||||||||||||||||
| 575 | Ellucian, Term Loan, First Lien | 4.500% | 3-Month LIBOR | 3.750% | 10/07/27 | B | 577,771 | |||||||||||||||||||||
| 200 | Thomson Reuters IP & S, Incremental Term Loan B | 4.000% | 1-Month LIBOR | 3.000% | 10/31/26 | B | 200,312 | |||||||||||||||||||||
| 775 | Total Software | 778,083 | ||||||||||||||||||||||||||
| Specialty Retail – 0.1% | ||||||||||||||||||||||||||||
| 175 | Woof Holdings Inc, Term Loan, First Lien | 4.500% | 12-Month LIBOR | 3.750% | 12/21/27 | B2 | 175,074 | |||||||||||||||||||||
| Technology Hardware, Storage & Peripherals – 0.7% | ||||||||||||||||||||||||||||
| 1,500 | Ahead, Term Loan B | 6.000% | 3-Month LIBOR | 5.000% | 10/16/27 | B1 | 1,479,375 | |||||||||||||||||||||
| $ | 18,988 | Total Variable Rate Senior Loan Interests (cost $18,383,808) |
| 18,704,129 | ||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 5.2% (9) |
| |||||||||||||||||||||||||||
| Banks – 4.2% | ||||||||||||||||||||||||||||
| $ | 1,000 | Banco Bilbao Vizcaya Argentaria SA | 6.500% | N/A (10) | Ba2 | $ | 1,065,620 | |||||||||||||||||||||
| 750 | Banco Mercantil del Norte SA/Grand Cayman, 144A | 6.750% | N/A (10) | Ba2 | 811,875 | |||||||||||||||||||||||
| 600 | Banco Santander SA | 7.500% | N/A (10) | Ba1 | 663,480 | |||||||||||||||||||||||
| 750 | Banco Votorantim SA | 8.250% | N/A (10) | CCC | 797,820 | |||||||||||||||||||||||
| 550 | Bancolombia SA | 4.625% | 12/18/29 | BB | 577,506 | |||||||||||||||||||||||
28
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Banks (continued) | ||||||||||||||||||||
| $ | 810 | Barclays PLC | 6.125% | N/A (10) | BBB– | $ | 872,775 | |||||||||||||
| 500 | Danske Bank A/S | 7.000% | N/A (10) | BBB– | 555,000 | |||||||||||||||
| 900 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A (10) | BB– | 1,021,500 | |||||||||||||||
| 700 | Lloyds Banking Group PLC | 7.500% | N/A (10) | Baa3 | 789,446 | |||||||||||||||
| 900 | Natwest Group PLC | 8.000% | N/A (10) | BBB– | 1,048,500 | |||||||||||||||
| 700 | UniCredit SpA | 8.000% | N/A (10) | B+ | 756,665 | |||||||||||||||
| 8,160 | Total Banks | 8,960,187 | ||||||||||||||||||
| Capital Markets – 1.0% | ||||||||||||||||||||
| 700 | Credit Suisse Group AG, 144A | 7.500% | N/A (10) | BB+ | 763,000 | |||||||||||||||
| 750 | Deutsche Bank AG | 6.000% | N/A (10) | B+ | 750,000 | |||||||||||||||
| 500 | UBS Group AG, 144A | 7.000% | N/A (10) | BBB | 548,125 | |||||||||||||||
| 1,950 | Total Capital Markets | 2,061,125 | ||||||||||||||||||
| $ | 10,110 | Total Contingent Capital Securities (cost $10,487,802) |
| 11,021,312 | ||||||||||||||||
| Shares | Description (1), (14) | Value | ||||||||||||||||||
EXCHANGE-TRADED FUNDS – 5.0% | ||||||||||||||||||||
| 58,403 | iShares JP Morgan USD Emerging Markets Bond ETF | $ | 6,769,492 | |||||||||||||||||
| 43,500 | iShares iBoxx High Yield Corporate Bond ETF | 3,797,550 | ||||||||||||||||||
Total Exchange-Traded Funds (cost $10,302,971) | 10,567,042 | |||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SOVEREIGN DEBT – 4.6% | ||||||||||||||||||||
| Barbados – 0.4% | ||||||||||||||||||||
| $ | 750 | Barbados Government International Bond, 144A | 6.500% | 10/01/29 | B– | $ | 759,375 | |||||||||||||
| Brazil – 0.4% | ||||||||||||||||||||
| 750 | Brazilian Government International Bond | 3.875% | 6/12/30 | BB– | 791,250 | |||||||||||||||
| Dominican Republic – 0.4% | ||||||||||||||||||||
| 750 | Dominican Republic International Bond, 144A | 4.875% | 9/23/32 | BB– | 829,687 | |||||||||||||||
| Egypt – 0.2% | ||||||||||||||||||||
| 500 | Egypt Government International Bond, 144A | 5.250% | 10/06/25 | B+ | 531,100 | |||||||||||||||
| El Salvador – 0.3% | ||||||||||||||||||||
| 750 | El Salvador Government International Bond, 144A, (3) | 6.375% | 1/18/27 | B+ | 709,883 | |||||||||||||||
| Jordan – 0.4% | ||||||||||||||||||||
| 750 | Jordan Government International Bond, 144A | 4.950% | 7/07/25 | BB– | 795,156 | |||||||||||||||
| Kenya – 0.4% | ||||||||||||||||||||
| 750 | Kenya Government International Bond, 144A | 7.000% | 5/22/27 | B+ | 825,937 | |||||||||||||||
29
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
| Morocco – 0.2% | ||||||||||||||||||||
| $ | 375 | Morocco Government International Bond, 144A | 3.000% | 12/15/32 | BBB– | $ | 381,101 | |||||||||||||
| Oman – 0.4% | ||||||||||||||||||||
| 750 | Oman Government International Bond, 144A | 6.750% | 10/28/27 | Ba3 | 812,475 | |||||||||||||||
| Tunisia – 0.4% | ||||||||||||||||||||
| 1,000 | Banque Centrale de Tunisie International Bond, 144A | 5.750% | 1/30/25 | B2 | 907,896 | |||||||||||||||
| Turkey – 0.3% | ||||||||||||||||||||
| 750 | Turkey Government International Bond | 5.125% | 2/17/28 | BB– | 759,000 | |||||||||||||||
| Ukraine – 0.4% | ||||||||||||||||||||
| 750 | Ukraine Government International Bond, 144A | 7.253% | 3/15/33 | B | 817,455 | |||||||||||||||
| Uzbekistan – 0.4% | ||||||||||||||||||||
| 750 | Republic of Uzbekistan Bond, 144A | 3.700% | 11/25/30 | BB– | 789,675 | |||||||||||||||
| $ | 9,375 | Total Sovereign Debt (cost $9,251,237) | 9,709,990 | |||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 2.7% |
| |||||||||||||||||||
| Automobiles – 0.5% | ||||||||||||||||||||
| $ | 955 | General Motors Financial Co Inc | 5.700% | N/A (10) | BB+ | $ | 1,052,887 | |||||||||||||
| Banks – 0.8% | ||||||||||||||||||||
| 1,000 | Citigroup Inc | 4.000% | N/A (10) | BBB– | 1,026,250 | |||||||||||||||
| 600 | Huntington Bancshares Inc/OH | 5.625% | N/A (10) | Baa3 | 700,500 | |||||||||||||||
| 1,600 | Total Banks | 1,726,750 | ||||||||||||||||||
| Consumer Finance – 0.3% | ||||||||||||||||||||
| 500 | Discover Financial Services | 6.125% | N/A (10) | Ba2 | 563,750 | |||||||||||||||
| Energy Equipment & Services – 0.0% | ||||||||||||||||||||
| 38 | Sanjel Corporation, 144A, (5), (15) | 7.500% | N/A (10) | N/R | — | |||||||||||||||
| Insurance – 0.7% | ||||||||||||||||||||
| 600 | Assurant Inc | 7.000% | 3/27/48 | BB+ | 675,000 | |||||||||||||||
| 700 | Enstar Finance LLC | 5.750% | 9/01/40 | BB+ | 736,917 | |||||||||||||||
| 1,300 | Total Insurance | 1,411,917 | ||||||||||||||||||
| Trading Companies & Distributors – 0.4% | ||||||||||||||||||||
| 850 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB+ | 867,000 | |||||||||||||||
| $ | 5,243 | Total $1,000 Par (or similar) Institutional Preferred (cost $5,284,372) |
| 5,622,304 | ||||||||||||||||
30
| Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 1.1% |
| |||||||||||||||||||
| Banks – 0.3% | ||||||||||||||||||||
| 25,000 | Wintrust Financial Corp | 6.875% | BB | $ | 712,250 | |||||||||||||||
| Food Products – 0.3% | ||||||||||||||||||||
| 20,000 | CHS Inc, (3) | 6.750% | N/R | 558,600 | ||||||||||||||||
| Insurance – 0.2% | ||||||||||||||||||||
| 12,000 | Assurant Inc, (8) | 5.250% | BB+ | 328,320 | ||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.3% | ||||||||||||||||||||
| 30,000 | NuStar Energy LP, (3) | 8.500% | B2 | 600,300 | ||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $2,026,178) |
| 2,199,470 | ||||||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||
| Energy Equipment & Services – 0.0% | ||||||||||||||||||||
| 6 | Golden Close Maritime Corp Ltd, (5), (8) | $ | — | |||||||||||||||||
| Metals & Mining – 0.0% | ||||||||||||||||||||
| 499,059 | Northland Resources SE, (5), (8) | 58 | ||||||||||||||||||
| Road & Rail – 0.0% | ||||||||||||||||||||
| 8,907 | Jack Cooper Enterprises Inc, (5), (8) | 89 | ||||||||||||||||||
Total Common Stocks (cost $5,030) | 147 | |||||||||||||||||||
Total Long-Term Investments (cost $197,319,337) |
| 205,277,875 | ||||||||||||||||||
| Shares | Description (1) | Coupon | Value | |||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.8% |
| |||||||||||||||||||
| Money Market Funds – 0.8% | ||||||||||||||||||||
| 1,749,651 | State Street Navigator Securities Lending Government Money Market Portfolio, (12) | 0.080% (13) | $ | 1,749,651 | ||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $1,749,651) |
| 1,749,651 | ||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||
SHORT-TERM INVESTMENTS – 3.0% | ||||||||||||||||||||
| REPURCHASE AGREEMENTS – 3.0% | ||||||||||||||||||||
| $ | 6,284 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/20, repurchase price $6,283,579, collateralized by $6,409,100, U.S. Treasury Notes, 0.125%, due 7/15/23, value $6,409,273 | 0.000% | 1/04/21 | $ | 6,283,579 | ||||||||||||||
Total Short-Term Investments (cost $6,283,579) | 6,283,579 | |||||||||||||||||||
Total Investments (cost $205,352,647) – 101.1% | 213,311,105 | |||||||||||||||||||
Other Assets Less Liabilities – (1.1)% | (2,274,781) | |||||||||||||||||||
Net Assets – 100% | $ | 211,036,324 | ||||||||||||||||||
31
Nuveen Credit Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub–classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $1,690,209. |
| (4) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
| (5) | 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. |
| (6) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate (Reference Rate) plus an assigned fixed rate (Spread). These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
| (7) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
| (8) | Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. |
| (9) | 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. |
| (10) | Perpetual security. Maturity date is not applicable. |
| (11) | Investment, or portion of investment, represents an outstanding unfunded senior loan commitment. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more information. |
| (12) | 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 for more information. |
| (13) | The rate shown is the one-day yield as of the end of the reporting period. |
| (14) | A copy of the most recent financial statements for these exchange-traded funds can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
| (15) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
| 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. |
| DDI | Portion of investment purchased on a delayed delivery basis. |
| ETF | Exchange-Traded Fund |
| I/O | Interest only security |
| LIBOR | London Inter-Bank Offered Rate |
| N/A | Not Applicable. |
| 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. |
| 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 accured 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.
32
Nuveen Strategic Income Fund
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
LONG-TERM INVESTMENTS – 96.9% | ||||||||||||||||||||||||||||
CORPORATE BONDS – 40.1% | ||||||||||||||||||||||||||||
| Aerospace & Defense – 0.8% | ||||||||||||||||||||||||||||
| $ | 1,380 | BAE Systems Holdings Inc, 144A | 3.850% | 12/15/25 | BBB | $ | 1,564,613 | |||||||||||||||||||||
| 670 | Boeing Co | 3.250% | 2/01/35 | Baa2 | 686,580 | |||||||||||||||||||||||
| 430 | Bombardier Inc, 144A | 7.500% | 3/15/25 | B | 398,825 | |||||||||||||||||||||||
| 1,215 | Carrier Global Corp | 2.242% | 2/15/25 | BBB | 1,286,356 | |||||||||||||||||||||||
| 350 | Embraer Netherlands Finance BV, 144A | 6.950% | 1/17/28 | BB+ | 395,500 | |||||||||||||||||||||||
| 150 | Howmet Aerospace Inc | 6.875% | 5/01/25 | BBB– | 177,000 | |||||||||||||||||||||||
| 515 | Raytheon Technologies Corp | 2.250% | 7/01/30 | A– | 546,726 | |||||||||||||||||||||||
| 200 | Rolls-Royce PLC, 144A | 5.750% | 10/15/27 | BB– | 221,500 | |||||||||||||||||||||||
| 4,910 | Total Aerospace & Defense | 5,277,100 | ||||||||||||||||||||||||||
| Airlines – 0.6% | ||||||||||||||||||||||||||||
| 809 | American Airlines 2016-1 Class AA Pass Through Trust | 3.575% | 1/15/28 | A | 801,785 | |||||||||||||||||||||||
| 750 | British Airways 2020-1 Class A Pass Through Trust, 144A | 4.250% | 11/15/32 | A | 801,562 | |||||||||||||||||||||||
| 750 | British Airways 2020-1 Class B Pass Through Trust, 144A | 8.375% | 11/15/28 | BBB | 826,875 | |||||||||||||||||||||||
| 175 | Delta Air Lines Inc, 144A | 7.000% | 5/01/25 | Baa2 | 202,010 | |||||||||||||||||||||||
| 1,350 | United Airlines 2020-1 Class A Pass Through Trust | 5.875% | 10/15/27 | A | 1,458,327 | |||||||||||||||||||||||
| 3,834 | Total Airlines | 4,090,559 | ||||||||||||||||||||||||||
| Auto Components – 0.4% | ||||||||||||||||||||||||||||
| 600 | Adient Global Holdings Ltd, 144A | 4.875% | 8/15/26 | B | 616,500 | |||||||||||||||||||||||
| 100 | Adient US LLC, 144A | 9.000% | 4/15/25 | Ba3 | 111,500 | |||||||||||||||||||||||
| 100 | Clarios Global LP, 144A | 6.750% | 5/15/25 | B1 | 107,750 | |||||||||||||||||||||||
| 1,000 | Clarios Global LP / Clarios US Finance Co, 144A | 8.500% | 5/15/27 | CCC+ | 1,086,409 | |||||||||||||||||||||||
| 175 | Dana Inc | 5.375% | 11/15/27 | BB+ | 185,500 | |||||||||||||||||||||||
| 500 | Goodyear Tire & Rubber Co | 9.500% | 5/31/25 | BB– | 565,150 | |||||||||||||||||||||||
| 2,475 | Total Auto Components | 2,672,809 | ||||||||||||||||||||||||||
| Automobiles – 0.8% | ||||||||||||||||||||||||||||
| 150 | Allison Transmission Inc, 144A | 3.750% | 1/30/31 | BB | 153,469 | |||||||||||||||||||||||
| 250 | Ford Motor Co | 8.500% | 4/21/23 | BB+ | 281,895 | |||||||||||||||||||||||
| 250 | Ford Motor Co | 9.000% | 4/22/25 | BB+ | 307,212 | |||||||||||||||||||||||
| 1,000 | Ford Motor Credit Co LLC | 3.336% | 3/18/21 | BB+ | 1,002,500 | |||||||||||||||||||||||
| 500 | Ford Motor Credit Co LLC | 3.375% | 11/13/25 | BB+ | 512,030 | |||||||||||||||||||||||
| 200 | Ford Motor Credit Co LLC | 4.000% | 11/13/30 | BB+ | 210,386 | |||||||||||||||||||||||
| 2,845 | General Motors Financial Co Inc | 3.600% | 6/21/30 | BBB | 3,174,144 | |||||||||||||||||||||||
| 5,195 | Total Automobiles | 5,641,636 | ||||||||||||||||||||||||||
33
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Banks – 6.9% | ||||||||||||||||||||||||||||
| $ | 750 | Akbank TAS, 144A | 6.800% | 2/06/26 | B+ | $ | 793,500 | |||||||||||||||||||||
| 2,435 | Banco Santander SA | 3.800% | 2/23/28 | A | 2,756,733 | |||||||||||||||||||||||
| 200 | Banco Santander SA | 2.749% | 12/03/30 | BBB+ | 206,413 | |||||||||||||||||||||||
| 425 | Bancolombia SA | 3.000% | 1/29/25 | Baa2 | 442,004 | |||||||||||||||||||||||
| 750 | Banistmo SA, 144A, (4) | 4.250% | 7/31/27 | Baa3 | 805,755 | |||||||||||||||||||||||
| 1,060 | Bank of America Corp | 3.559% | 4/23/27 | A+ | 1,196,574 | |||||||||||||||||||||||
| 1,105 | Bank of America Corp | 3.248% | 10/21/27 | A+ | 1,236,280 | |||||||||||||||||||||||
| 3,662 | Bank of America Corp | 3.419% | 12/20/28 | A+ | 4,140,455 | |||||||||||||||||||||||
| 850 | Banque Ouest Africaine de Developpement, 144A | 5.000% | 7/27/27 | Baa1 | 945,081 | |||||||||||||||||||||||
| 2,865 | Barclays PLC | 3.650% | 3/16/25 | A | 3,151,890 | |||||||||||||||||||||||
| 350 | BBVA Bancomer SA/Texas, 144A | 1.875% | 9/18/25 | Baa1 | 353,500 | |||||||||||||||||||||||
| 2,010 | BNP Paribas SA, 144A | 4.375% | 5/12/26 | A– | 2,310,193 | |||||||||||||||||||||||
| 500 | Bonanza RE Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 4.750% spread), (3) | 4.808% | 12/23/24 | N/R | 499,750 | |||||||||||||||||||||||
| 750 | Caelus Re VI Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 5.500% spread), (3) | 5.558% | 6/07/23 | N/R | 762,075 | |||||||||||||||||||||||
| 1,575 | Citigroup Inc | 4.300% | 11/20/26 | BBB+ | 1,836,365 | |||||||||||||||||||||||
| 1,895 | Citigroup Inc | 4.450% | 9/29/27 | BBB+ | 2,234,211 | |||||||||||||||||||||||
| 2,080 | Citigroup Inc | 2.666% | 1/29/31 | A | 2,230,220 | |||||||||||||||||||||||
| 970 | Citigroup Inc | 2.572% | 6/03/31 | A | 1,033,308 | |||||||||||||||||||||||
| 2,800 | Goldman Sachs Group Inc | 4.000% | 3/03/24 | A | 3,093,474 | |||||||||||||||||||||||
| 675 | Grupo Aval Ltd, 144A | 4.375% | 2/04/30 | BBB– | 718,875 | |||||||||||||||||||||||
| 1,465 | HSBC Holdings PLC | 2.099% | 6/04/26 | A+ | 1,522,034 | |||||||||||||||||||||||
| 815 | HSBC Holdings PLC | 4.375% | 11/23/26 | A3 | 940,180 | |||||||||||||||||||||||
| 2,100 | ING Groep NV | 3.950% | 3/29/27 | A+ | 2,428,480 | |||||||||||||||||||||||
| 1,100 | JPMorgan Chase & Co | 3.875% | 9/10/24 | A | 1,231,498 | |||||||||||||||||||||||
| 2,710 | JPMorgan Chase & Co | 3.702% | 5/06/30 | AA– | 3,142,159 | |||||||||||||||||||||||
| 600 | JPMorgan Chase & Co | 2.956% | 5/13/31 | A | 657,741 | |||||||||||||||||||||||
| 1,705 | Natwest Group PLC | 3.032% | 11/28/35 | BBB+ | 1,763,328 | |||||||||||||||||||||||
| 2,810 | Wells Fargo & Co | 2.879% | 10/30/30 | A+ | 3,064,085 | |||||||||||||||||||||||
| 1,500 | Zions Bancorp NA | 3.250% | 10/29/29 | BBB | 1,579,556 | |||||||||||||||||||||||
| 42,512 | Total Banks | 47,075,717 | ||||||||||||||||||||||||||
| Beverages – 0.0% | ||||||||||||||||||||||||||||
| 225 | Constellation Brands Inc | 2.875% | 5/01/30 | BBB | 246,419 | |||||||||||||||||||||||
| Biotechnology – 0.0% | ||||||||||||||||||||||||||||
| 175 | Emergent BioSolutions Inc, 144A | 3.875% | 8/15/28 | BB– | 181,213 | |||||||||||||||||||||||
| Capital Markets – 1.4% | ||||||||||||||||||||||||||||
| 1,125 | Donnelley Financial Solutions Inc | 8.250% | 10/15/24 | B | 1,192,500 | |||||||||||||||||||||||
| 2,295 | Goldman Sachs Group Inc | 4.250% | 10/21/25 | BBB+ | 2,631,651 | |||||||||||||||||||||||
| 4,635 | Morgan Stanley | 3.950% | 4/23/27 | Baa1 | 5,358,672 | |||||||||||||||||||||||
| 8,055 | Total Capital Markets | 9,182,823 | ||||||||||||||||||||||||||
34
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Chemicals – 1.4% | ||||||||||||||||||||||||||||
| $ | 2,185 | Agrium Inc | 3.375% | 3/15/25 | BBB | $ | 2,335,975 | |||||||||||||||||||||
| 100 | Avient Corp, 144A | 5.750% | 5/15/25 | BB– | 106,250 | |||||||||||||||||||||||
| 150 | Axalta Coating Systems LLC, 144A | 3.375% | 2/15/29 | BB– | 150,000 | |||||||||||||||||||||||
| 1,465 | DuPont de Nemours Inc | 4.493% | 11/15/25 | BBB+ | 1,709,813 | |||||||||||||||||||||||
| 500 | Element Solutions Inc, 144A | 3.875% | 9/01/28 | BB– | 514,375 | |||||||||||||||||||||||
| 150 | Kraton Polymers LLC / Kraton Polymers Capital Corp, 144A | 4.250% | 12/15/25 | BB– | 153,015 | |||||||||||||||||||||||
| 750 | MEGlobal Canada ULC, 144A | 5.000% | 5/18/25 | BBB | 843,750 | |||||||||||||||||||||||
| 1,500 | NOVA Chemicals Corp, 144A | 5.250% | 8/01/23 | BB– | 1,507,500 | |||||||||||||||||||||||
| 1,350 | NOVA Chemicals Corp, 144A | 5.000% | 5/01/25 | BB– | 1,414,125 | |||||||||||||||||||||||
| 800 | OCI NV, 144A | 4.625% | 10/15/25 | BB | 830,000 | |||||||||||||||||||||||
| 100 | Rayonier AM Products Inc, 144A | 7.625% | 1/15/26 | B1 | 104,275 | |||||||||||||||||||||||
| 9,050 | Total Chemicals | 9,669,078 | ||||||||||||||||||||||||||
| Commercial Services & Supplies – 0.7% | ||||||||||||||||||||||||||||
| 1,000 | Adani Ports & Special Economic Zone Ltd, 144A | 4.200% | 8/04/27 | BBB– | 1,071,060 | |||||||||||||||||||||||
| 1,575 | ADT Security Corp, 144A | 4.875% | 7/15/32 | BB– | 1,701,000 | |||||||||||||||||||||||
| 100 | GFL Environmental Inc, 144A | 4.250% | 6/01/25 | BB– | 103,750 | |||||||||||||||||||||||
| 400 | GFL Environmental Inc, 144A | 3.750% | 8/01/25 | BB– | 408,000 | |||||||||||||||||||||||
| 100 | GFL Environmental Inc, 144A | 5.125% | 12/15/26 | BB– | 106,375 | |||||||||||||||||||||||
| 165 | GFL Environmental Inc, 144A | 8.500% | 5/01/27 | B– | 183,150 | |||||||||||||||||||||||
| 625 | GFL Environmental Inc, 144A | 3.500% | 9/01/28 | BB– | 637,631 | |||||||||||||||||||||||
| 125 | Prime Security Services Borrower LLC / Prime Finance Inc, 144A | 3.375% | 8/31/27 | BB– | 124,063 | |||||||||||||||||||||||
| 375 | Prime Security Services Borrower LLC / Prime Finance Inc, 144A | 6.250% | 1/15/28 | B– | 402,596 | |||||||||||||||||||||||
| 125 | Stericycle Inc, 144A | 3.875% | 1/15/29 | BB | 128,437 | |||||||||||||||||||||||
| 4,590 | Total Commercial Services & Supplies | 4,866,062 | ||||||||||||||||||||||||||
| Communications Equipment – 0.4% | ||||||||||||||||||||||||||||
| 1,950 | CommScope Inc, 144A | 8.250% | 3/01/27 | B3 | 2,081,625 | |||||||||||||||||||||||
| 650 | Gray Television Inc, 144A | 4.750% | 10/15/30 | BB– | 659,750 | |||||||||||||||||||||||
| 2,600 | Total Communications Equipment | 2,741,375 | ||||||||||||||||||||||||||
| Construction & Engineering – 0.0% | ||||||||||||||||||||||||||||
| 250 | PowerTeam Services LLC, 144A | 9.033% | 12/04/25 | B– | 278,153 | |||||||||||||||||||||||
| Construction Materials – 0.3% | ||||||||||||||||||||||||||||
| 450 | Cemex SAB de CV, 144A | 7.375% | 6/05/27 | BB | 512,100 | |||||||||||||||||||||||
| 600 | Cemex SAB de CV, 144A | 5.450% | 11/19/29 | BB | 660,006 | |||||||||||||||||||||||
| 750 | Gates Global LLC / Gates Corp, 144A | 6.250% | 1/15/26 | B | 787,500 | |||||||||||||||||||||||
| 1,800 | Total Construction Materials | 1,959,606 | ||||||||||||||||||||||||||
| Consumer Finance – 1.1% | ||||||||||||||||||||||||||||
| 1,780 | Capital One Financial Corp | 3.750% | 3/09/27 | A– | 2,030,626 | |||||||||||||||||||||||
35
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Consumer Finance (continued) | ||||||||||||||||||||||||||||
| $ | 1,000 | Curo Group Holdings Corp, 144A | 8.250% | 9/01/25 | B– | $ | 950,000 | |||||||||||||||||||||
| 2,180 | Discover Bank | 4.250% | 3/13/26 | BBB+ | 2,507,455 | |||||||||||||||||||||||
| 100 | OneMain Finance Corp | 8.875% | 6/01/25 | BB– | 113,125 | |||||||||||||||||||||||
| 425 | OneMain Finance Corp | 5.375% | 11/15/29 | BB– | 478,125 | |||||||||||||||||||||||
| 1,500 | Refinitiv US Holdings Inc, 144A | 8.250% | 11/15/26 | B+ | 1,636,875 | |||||||||||||||||||||||
| 6,985 | Total Consumer Finance | 7,716,206 | ||||||||||||||||||||||||||
| Distributors – 0.1% | ||||||||||||||||||||||||||||
| 625 | H&E Equipment Services Inc, 144A | 3.875% | 12/15/28 | BB– | 629,706 | |||||||||||||||||||||||
| Diversified Consumer Services – 0.2% | ||||||||||||||||||||||||||||
| 1,500 | frontdoor Inc, 144A | 6.750% | 8/15/26 | B | 1,599,375 | |||||||||||||||||||||||
| Diversified Financial Services – 0.9% | ||||||||||||||||||||||||||||
| 1,555 | GE Capital International Funding Co Unlimited Co | 4.418% | 11/15/35 | BBB+ | 1,854,247 | |||||||||||||||||||||||
| 425 | Genesis Energy LP / Genesis Energy Finance Corp | 7.750% | 2/01/28 | B+ | 406,937 | |||||||||||||||||||||||
| 375 | Indian Railway Finance Corp Ltd, 144A | 3.249% | 2/13/30 | BBB– | 398,513 | |||||||||||||||||||||||
| 2,000 | Quicken Loans LLC, 144A | 5.250% | 1/15/28 | Ba1 | 2,135,000 | |||||||||||||||||||||||
| 400 | REC Ltd, 144A | 4.750% | 5/19/23 | Baa3 | 426,624 | |||||||||||||||||||||||
| 1,000 | Ursa Re II Ltd, 144A, (3–Month U.S. Treasury Bill reference rate + 3.750% spread), (3) | 3.808% | 12/07/23 | N/R | 1,003,400 | |||||||||||||||||||||||
| 5,755 | Total Diversified Financial Services | 6,224,721 | ||||||||||||||||||||||||||
| Diversified Telecommunication Services – 1.9% | ||||||||||||||||||||||||||||
| 3,950 | AT&T Inc | 4.350% | 3/01/29 | A– | 4,707,728 | |||||||||||||||||||||||
| 380 | AT&T Inc | 3.500% | 6/01/41 | A– | 409,099 | |||||||||||||||||||||||
| 722 | AT&T Inc, 144A | 3.800% | 12/01/57 | A– | 749,871 | |||||||||||||||||||||||
| 1,000 | Avaya Inc, 144A | 6.125% | 9/15/28 | BB– | 1,068,260 | |||||||||||||||||||||||
| 2,650 | Telefonica Emisiones SA | 4.103% | 3/08/27 | BBB | 3,066,611 | |||||||||||||||||||||||
| 2,200 | Telenet Finance Luxembourg Notes Sarl, 144A | 5.500% | 3/01/28 | BB+ | 2,346,239 | |||||||||||||||||||||||
| 500 | Zayo Group Holdings Inc, 144A | 4.000% | 3/01/27 | B1 | 501,250 | |||||||||||||||||||||||
| 11,402 | Total Diversified Telecommunication Services | 12,849,058 | ||||||||||||||||||||||||||
| Electric Utilities – 1.4% | ||||||||||||||||||||||||||||
| 1,025 | Berkshire Hathaway Energy Co, 144A | 3.700% | 7/15/30 | A– | 1,211,781 | |||||||||||||||||||||||
| 800 | Empresas Publicas de Medellin ESP, 144A | 4.375% | 2/15/31 | Baa3 | 859,008 | |||||||||||||||||||||||
| 100 | NRG Energy Inc, 144A | 3.375% | 2/15/29 | BB+ | 102,380 | |||||||||||||||||||||||
| 250 | NRG Energy Inc, 144A | 3.625% | 2/15/31 | BB+ | 257,200 | |||||||||||||||||||||||
| 430 | NSTAR Electric Co | 3.950% | 4/01/30 | A1 | 521,239 | |||||||||||||||||||||||
| 2,000 | Oglethorpe Power Corp, (4) | 4.200% | 12/01/42 | BBB+ | 2,116,253 | |||||||||||||||||||||||
| 1,000 | Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 144A | 6.150% | 5/21/48 | Baa2 | 1,305,000 | |||||||||||||||||||||||
| 1,000 | Talen Energy Supply LLC | 6.500% | 6/01/25 | B | 815,000 | |||||||||||||||||||||||
| 250 | Vistra Operations Co LLC, 144A | 5.500% | 9/01/26 | BB+ | 260,550 | |||||||||||||||||||||||
36
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Electric Utilities (continued) | ||||||||||||||||||||||||||||
| $ | 1,725 | Vistra Operations Co LLC, 144A | 5.625% | 2/15/27 | BB+ | $ | 1,834,779 | |||||||||||||||||||||
| 8,580 | Total Electric Utilities | 9,283,190 | ||||||||||||||||||||||||||
| Energy Equipment & Services – 0.3% | ||||||||||||||||||||||||||||
| 1,100 | Archrock Partners LP / Archrock Partners Finance Corp, 144A | 6.875% | 4/01/27 | B+ | 1,183,875 | |||||||||||||||||||||||
| 550 | Archrock Partners LP / Archrock Partners Finance Corp, 144A | 6.250% | 4/01/28 | B+ | 572,528 | |||||||||||||||||||||||
| 1,650 | Total Energy Equipment & Services | 1,756,403 | ||||||||||||||||||||||||||
| Entertainment – 0.0% | ||||||||||||||||||||||||||||
| 225 | Live Nation Entertainment Inc, 144A | 6.500% | 5/15/27 | B+ | 251,667 | |||||||||||||||||||||||
| Equity Real Estate Investment Trust – 1.6% | ||||||||||||||||||||||||||||
| 750 | American Tower Corp | 5.000% | 2/15/24 | BBB+ | 849,034 | |||||||||||||||||||||||
| 320 | Crown Castle International Corp | 3.250% | 1/15/51 | BBB+ | 337,000 | |||||||||||||||||||||||
| 1,075 | Essex Portfolio LP | 2.650% | 3/15/32 | BBB+ | 1,152,733 | |||||||||||||||||||||||
| 595 | Healthcare Realty Trust Inc | 2.400% | 3/15/30 | BBB+ | 620,199 | |||||||||||||||||||||||
| 750 | MPH Acquisition Holdings LLC, 144A, (4) | 5.750% | 11/01/28 | B– | 733,125 | |||||||||||||||||||||||
| 325 | MPT Operating Partnership LP / MPT Finance Corp | 3.500% | 3/15/31 | BBB– | 335,563 | |||||||||||||||||||||||
| 1,335 | Regency Centers LP | 2.950% | 9/15/29 | BBB+ | 1,426,199 | |||||||||||||||||||||||
| 940 | Retail Properties of America Inc | 4.750% | 9/15/30 | BBB– | 997,512 | |||||||||||||||||||||||
| 2,400 | SBA Tower Trust, 144A | 2.836% | 1/15/25 | A2 | 2,555,239 | |||||||||||||||||||||||
| 300 | SBA Tower Trust, 144A | 1.884% | 1/15/26 | A2 | 308,759 | |||||||||||||||||||||||
| 285 | SBA Tower Trust, 144A | 2.328% | 1/15/28 | A2 | 287,193 | |||||||||||||||||||||||
| 1,000 | VICI Properties LP / VICI Note Co Inc, 144A | 4.125% | 8/15/30 | BB | 1,055,630 | |||||||||||||||||||||||
| 10,075 | Total Equity Real Estate Investment Trust | 10,658,186 | ||||||||||||||||||||||||||
| Food & Staples Retailing – 0.2% | ||||||||||||||||||||||||||||
| 1,123 | CVS Health Corp | 4.300% | 3/25/28 | BBB | 1,336,699 | |||||||||||||||||||||||
| Food Products – 0.3% | ||||||||||||||||||||||||||||
| 750 | BRF SA, 144A, (4) | 4.875% | 1/24/30 | Ba2 | 813,758 | |||||||||||||||||||||||
| 600 | NBM US Holdings Inc, 144A | 6.625% | 8/06/29 | BB | 688,500 | |||||||||||||||||||||||
| 575 | Ulker Biskuvi Sanayi AS, 144A | 6.950% | 10/30/25 | BB– | 621,414 | |||||||||||||||||||||||
| 1,925 | Total Food Products | 2,123,672 | ||||||||||||||||||||||||||
| Gas Utilities – 0.3% | ||||||||||||||||||||||||||||
| 750 | ENN Energy Holdings Ltd, 144A | 2.625% | 9/17/30 | BBB | 753,802 | |||||||||||||||||||||||
| 1,250 | Suburban Propane Partners LP/Suburban Energy Finance Corp | 5.500% | 6/01/24 | BB– | 1,276,562 | |||||||||||||||||||||||
| 2,000 | Total Gas Utilities | 2,030,364 | ||||||||||||||||||||||||||
| Health Care Equipment & Supplies – 0.1% | ||||||||||||||||||||||||||||
| 315 | Boston Scientific Corp | 2.650% | 6/01/30 | Baa2 | 337,853 | |||||||||||||||||||||||
| 125 | RP Escrow Issuer LLC, 144A | 5.250% | 12/15/25 | B– | 130,740 | |||||||||||||||||||||||
| 440 | Total Health Care Equipment & Supplies | 468,593 | ||||||||||||||||||||||||||
37
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Health Care Providers & Services – 0.9% | ||||||||||||||||||||||||||||
| $ | 1,515 | Centene Corp, 144A | 5.375% | 6/01/26 | BBB– | $ | 1,597,886 | |||||||||||||||||||||
| 350 | Centene Corp | 4.625% | 12/15/29 | BBB– | 388,573 | |||||||||||||||||||||||
| 1,730 | CVS Health Corp | 1.875% | 2/28/31 | BBB | 1,747,709 | |||||||||||||||||||||||
| 450 | DaVita Inc, 144A | 3.750% | 2/15/31 | Ba3 | 456,912 | |||||||||||||||||||||||
| 275 | Encompass Health Corp | 4.500% | 2/01/28 | B+ | 287,375 | |||||||||||||||||||||||
| 100 | HCA Inc | 5.625% | 9/01/28 | Ba2 | 118,125 | |||||||||||||||||||||||
| 1,000 | HCA Inc | 3.500% | 9/01/30 | Ba2 | 1,062,021 | |||||||||||||||||||||||
| 275 | LifePoint Health Inc, 144A | 5.375% | 1/15/29 | CCC+ | 274,808 | |||||||||||||||||||||||
| 200 | Tenet Healthcare Corp, 144A | 7.500% | 4/01/25 | BB– | 218,500 | |||||||||||||||||||||||
| 5,895 | Total Health Care Providers & Services | 6,151,909 | ||||||||||||||||||||||||||
| Hotels, Restaurants & Leisure – 0.3% | ||||||||||||||||||||||||||||
| 100 | Boyd Gaming Corp, 144A | 8.625% | 6/01/25 | B– | 111,219 | |||||||||||||||||||||||
| 300 | Carnival Corp, 144A | 7.625% | 3/01/26 | B | 326,847 | |||||||||||||||||||||||
| 375 | Cedar Fair LP / Canada’s Wonderland Co / Magnum Management Corp / Millennium Op, 144A | 5.500% | 5/01/25 | Ba2 | 390,937 | |||||||||||||||||||||||
| 325 | Melco Resorts Finance Ltd, 144A | 5.750% | 7/21/28 | BB | 346,288 | |||||||||||||||||||||||
| 1,000 | Wynn Macau Ltd, 144A | 5.625% | 8/26/28 | BB– | 1,048,055 | |||||||||||||||||||||||
| 100 | Yum! Brands Inc, 144A | 7.750% | 4/01/25 | B+ | 110,750 | |||||||||||||||||||||||
| 2,200 | Total Hotels, Restaurants & Leisure | 2,334,096 | ||||||||||||||||||||||||||
| Household Durables – 0.0% | ||||||||||||||||||||||||||||
| 100 | Kronos Acquisition Holdings Inc / KIK Custom Products Inc, 144A | 5.000% | 12/31/26 | B2 | 104,250 | |||||||||||||||||||||||
| Independent Power & Renewable Electricity Producers – 0.6% | ||||||||||||||||||||||||||||
| 600 | Azure Power Solar Energy Pvt Ltd, 144A | 5.650% | 12/24/24 | Ba1 | 639,000 | |||||||||||||||||||||||
| 671 | Calpine Corp, 144A | 5.250% | 6/01/26 | BB+ | 694,149 | |||||||||||||||||||||||
| 174 | Clearway Energy Operating LLC, 144A | 4.750% | 3/15/28 | BB | 186,615 | |||||||||||||||||||||||
| 1,000 | EnfraGen Energia Sur SA / EnfraGen Spain SA / Prime Energia SpA, 144A | 5.375% | 12/30/30 | Ba3 | 1,037,500 | |||||||||||||||||||||||
| 750 | India Green Energy Holdings, 144A | 5.375% | 4/29/24 | BB– | 793,159 | |||||||||||||||||||||||
| 42 | NRG Energy Inc | 6.625% | 1/15/27 | BB+ | 44,354 | |||||||||||||||||||||||
| 680 | UEP Penonome II SA, 144A | 6.500% | 10/01/38 | BB | 708,404 | |||||||||||||||||||||||
| 3,917 | Total Independent Power & Renewable Electricity Producers |
| 4,103,181 | |||||||||||||||||||||||||
| Industrial Conglomerates – 0.2% | ||||||||||||||||||||||||||||
| 560 | General Electric Co | 3.625% | 5/01/30 | BBB+ | 639,683 | |||||||||||||||||||||||
| 500 | Icahn Enterprises LP / Icahn Enterprises Finance Corp | 5.250% | 5/15/27 | BB | 536,000 | |||||||||||||||||||||||
| 1,060 | Total Industrial Conglomerates | 1,175,683 | ||||||||||||||||||||||||||
| Insurance – 1.2% | ||||||||||||||||||||||||||||
| 275 | Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issuer, 144A | 4.250% | 10/15/27 | B | 281,188 | |||||||||||||||||||||||
| 1,940 | Liberty Mutual Group Inc, 144A | 4.569% | 2/01/29 | BBB | 2,382,651 | |||||||||||||||||||||||
38
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Insurance (continued) | ||||||||||||||||||||||||||||
| $ | 550 | Residential Reinsurance 2020 Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 6.250% spread), (3) | 6.308% | 12/06/24 | N/R | $ | 553,300 | |||||||||||||||||||||
| 250 | Sutter Re Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 5.000% spread), (3) | 5.058% | 6/06/22 | N/R | 256,400 | |||||||||||||||||||||||
| 1,805 | Willis North America Inc | 3.600% | 5/15/24 | BBB | 1,970,604 | |||||||||||||||||||||||
| 2,225 | XLIT Ltd | 4.450% | 3/31/25 | A3 | 2,538,671 | |||||||||||||||||||||||
| 7,045 | Total Insurance | 7,982,814 | ||||||||||||||||||||||||||
| Interactive Media & Services – 0.2% | ||||||||||||||||||||||||||||
| 100 | Arches Buyer Inc, 144A | 4.250% | 6/01/28 | B1 | 101,270 | |||||||||||||||||||||||
| 100 | Arches Buyer Inc, 144A | 6.125% | 12/01/28 | CCC+ | 103,270 | |||||||||||||||||||||||
| 725 | Prosus NV, 144A | 3.680% | 1/21/30 | BBB– | 788,513 | |||||||||||||||||||||||
| 925 | Total Interactive Media & Services | 993,053 | ||||||||||||||||||||||||||
| Internet & Direct Marketing Retail – 0.0% | ||||||||||||||||||||||||||||
| 200 | B2W Digital Lux Sarl, 144A, (4) | 4.375% | 12/20/30 | Ba1 | 207,000 | |||||||||||||||||||||||
| Internet Software & Services – 0.1% | ||||||||||||||||||||||||||||
| 325 | J2 Global Inc, 144A | 4.625% | 10/15/30 | BB | 342,875 | |||||||||||||||||||||||
| 100 | Rackspace Technology Global Inc, 144A | 5.375% | 12/01/28 | B– | 104,770 | |||||||||||||||||||||||
| 425 | Total Internet Software & Services | 447,645 | ||||||||||||||||||||||||||
| IT Services – 0.3% | ||||||||||||||||||||||||||||
| 100 | Austin BidCo Inc, 144A | 7.125% | 12/15/28 | CCC+ | 104,375 | |||||||||||||||||||||||
| 1,680 | Fidelity National Information Services Inc | 3.750% | 5/21/29 | BBB | 1,971,380 | |||||||||||||||||||||||
| 1,780 | Total IT Services | 2,075,755 | ||||||||||||||||||||||||||
| Leisure Products – 0.1% | ||||||||||||||||||||||||||||
| 750 | Mattel Inc, 144A | 6.750% | 12/31/25 | BB– | 791,602 | |||||||||||||||||||||||
| Life Sciences Tools & Services – 0.1% | ||||||||||||||||||||||||||||
| 300 | Avantor Funding Inc, 144A | 4.625% | 7/15/28 | BB | 317,250 | |||||||||||||||||||||||
| Machinery – 0.4% | ||||||||||||||||||||||||||||
| 700 | Maxim Crane Works Holdings Capital LLC, 144A | 10.125% | 8/01/24 | B– | 728,875 | |||||||||||||||||||||||
| 1,405 | Trane Technologies Luxembourg Finance SA | 3.800% | 3/21/29 | BBB | 1,643,869 | |||||||||||||||||||||||
| 2,105 | Total Machinery | 2,372,744 | ||||||||||||||||||||||||||
| Media – 1.6% | ||||||||||||||||||||||||||||
| 375 | CCO Holdings LLC / CCO Holdings Capital Corp, 144A | 4.500% | 8/15/30 | BB | 397,969 | |||||||||||||||||||||||
| 2,650 | Comcast Corp | 2.650% | 2/01/30 | A– | 2,894,751 | |||||||||||||||||||||||
| 1,790 | Comcast Corp | 3.969% | 11/01/47 | A– | 2,238,125 | |||||||||||||||||||||||
| 1,200 | CSC Holdings LLC, 144A | 6.500% | 2/01/29 | BB | 1,354,860 | |||||||||||||||||||||||
| 1,500 | DISH DBS Corp | 7.750% | 7/01/26 | B2 | 1,679,220 | |||||||||||||||||||||||
| 600 | Entercom Media Corp, 144A | 6.500% | 5/01/27 | B– | 609,750 | |||||||||||||||||||||||
| 500 | Grupo Televisa SAB | 5.250% | 5/24/49 | BBB+ | 632,604 | |||||||||||||||||||||||
39
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Media (continued) | ||||||||||||||||||||||||||||
| $ | 500 | Lamar Media Corp | 3.750% | 2/15/28 | BB– | $ | 513,850 | |||||||||||||||||||||
| 200 | Lamar Media Corp | 4.000% | 2/15/30 | BB– | 207,500 | |||||||||||||||||||||||
| 625 | TEGNA Inc, 144A | 4.625% | 3/15/28 | BB– | 639,062 | |||||||||||||||||||||||
| 9,940 | Total Media | 11,167,691 | ||||||||||||||||||||||||||
| Metals & Mining – 1.1% | ||||||||||||||||||||||||||||
| 650 | Anglo American Capital PLC, 144A | 2.625% | 9/10/30 | BBB | 679,320 | |||||||||||||||||||||||
| 675 | AngloGold Ashanti Holdings PLC | 3.750% | 10/01/30 | Baa3 | 725,159 | |||||||||||||||||||||||
| 100 | Arconic Corp, 144A | 6.000% | 5/15/25 | BBB– | 106,750 | |||||||||||||||||||||||
| 450 | Cleveland-Cliffs Inc, 144A | 9.875% | 10/17/25 | BB | 529,312 | |||||||||||||||||||||||
| 675 | Corp Nacional del Cobre de Chile, 144A | 3.150% | 1/15/51 | A | 678,814 | |||||||||||||||||||||||
| 1,050 | First Quantum Minerals Ltd, 144A | 6.500% | 3/01/24 | B– | 1,078,875 | |||||||||||||||||||||||
| 500 | First Quantum Minerals Ltd, 144A | 6.875% | 10/15/27 | B– | 542,500 | |||||||||||||||||||||||
| 450 | Fresnillo PLC, 144A | 4.250% | 10/02/50 | BBB | 493,875 | |||||||||||||||||||||||
| 325 | Hudbay Minerals Inc, 144A | 6.125% | 4/01/29 | B+ | 350,188 | |||||||||||||||||||||||
| 1,000 | Indika Energy Capital IV Pte Ltd, 144A | 8.250% | 10/22/25 | Ba3 | 1,081,471 | |||||||||||||||||||||||
| 325 | Metinvest BV, 144A | 7.650% | 10/01/27 | BB– | 353,437 | |||||||||||||||||||||||
| 700 | Tronox Inc, 144A | 6.500% | 4/15/26 | B | 728,875 | |||||||||||||||||||||||
| 6,900 | Total Metals & Mining | 7,348,576 | ||||||||||||||||||||||||||
| Multiline Retail – 0.1% | ||||||||||||||||||||||||||||
| 750 | JSM Global Sarl, 144A, (4) | 4.750% | 10/20/30 | Ba1 | 807,195 | |||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 5.7% | ||||||||||||||||||||||||||||
| 900 | Antero Midstream Partners LP / Antero Midstream Finance Corp, 144A | 7.875% | 5/15/26 | B– | 929,322 | |||||||||||||||||||||||
| 990 | Chevron Corp | 2.236% | 5/11/30 | AA | 1,058,876 | |||||||||||||||||||||||
| 1,560 | Concho Resources Inc | 2.400% | 2/15/31 | BBB | 1,631,778 | |||||||||||||||||||||||
| 1,100 | Cosan Ltd, 144A | 5.500% | 9/20/29 | BB | 1,205,886 | |||||||||||||||||||||||
| 725 | Diamondback Energy Inc | 3.250% | 12/01/26 | BBB | 773,878 | |||||||||||||||||||||||
| 575 | Ecopetrol SA | 6.875% | 4/29/30 | BBB– | 742,325 | |||||||||||||||||||||||
| 100 | Ecopetrol SA | 5.875% | 5/28/45 | BBB– | 121,050 | |||||||||||||||||||||||
| 1,420 | Energy Transfer Operating LP | 5.000% | 5/15/50 | BBB– | 1,535,353 | |||||||||||||||||||||||
| 125 | EnLink Midstream LLC, 144A | 5.625% | 1/15/28 | BB+ | 127,686 | |||||||||||||||||||||||
| 250 | EnLink Midstream LLC, (4) | 5.375% | 6/01/29 | BB+ | 243,125 | |||||||||||||||||||||||
| 400 | Enviva Partners LP / Enviva Partners Finance Corp, 144A | 6.500% | 1/15/26 | BB– | 425,000 | |||||||||||||||||||||||
| 1,000 | Galaxy Pipeline Assets Bidco Ltd, 144A | 2.625% | 3/31/36 | Aa2 | 1,037,332 | |||||||||||||||||||||||
| 500 | Geopark Ltd, 144A | 5.500% | 1/17/27 | B+ | 500,005 | |||||||||||||||||||||||
| 800 | KazMunayGas National Co JSC, 144A | 5.375% | 4/24/30 | Baa3 | 986,150 | |||||||||||||||||||||||
| 750 | Leviathan Bond Ltd, 144A, Reg S | 6.500% | 6/30/27 | BB | 841,775 | |||||||||||||||||||||||
| 595 | Magellan Midstream Partners LP | 3.250% | 6/01/30 | BBB+ | 667,883 | |||||||||||||||||||||||
| 1,325 | Marathon Petroleum Corp | 5.000% | 9/15/54 | BBB | 1,496,679 | |||||||||||||||||||||||
| 750 | Medco Oak Tree Pte Ltd, 144A | 7.375% | 5/14/26 | B1 | 802,559 | |||||||||||||||||||||||
40
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Oil, Gas & Consumable Fuels (continued) | ||||||||||||||||||||||||||||
| $ | 2,000 | Moss Creek Resources Holdings Inc, 144A, (4) | 10.500% | 5/15/27 | B– | $ | 1,600,000 | |||||||||||||||||||||
| 1,795 | MPLX LP | 4.875% | 6/01/25 | BBB | 2,072,937 | |||||||||||||||||||||||
| 800 | Murphy Oil Corp | 5.875% | 12/01/27 | BB+ | 788,000 | |||||||||||||||||||||||
| 1,590 | Noble Energy Inc | 5.050% | 11/15/44 | AA | 2,231,807 | |||||||||||||||||||||||
| 2,000 | Occidental Petroleum Corp | 4.300% | 8/15/39 | Ba2 | 1,682,300 | |||||||||||||||||||||||
| 1,340 | ONEOK Inc | 3.400% | 9/01/29 | BBB | 1,433,385 | |||||||||||||||||||||||
| 625 | Pertamina Persero PT, 144A, (4) | 4.700% | 7/30/49 | Baa2 | 711,008 | |||||||||||||||||||||||
| 593 | Petrobras Global Finance BV | 5.093% | 1/15/30 | Ba2 | 662,678 | |||||||||||||||||||||||
| 1,000 | Petrobras Global Finance BV | 5.600% | 1/03/31 | Ba2 | 1,149,300 | |||||||||||||||||||||||
| 2,200 | Petroleos Mexicanos | 6.500% | 3/13/27 | BBB | 2,317,018 | |||||||||||||||||||||||
| 200 | Promigas SA ESP / Gases del Pacifico SAC, 144A | 3.750% | 10/16/29 | Baa3 | 212,752 | |||||||||||||||||||||||
| 1,345 | Sabine Pass Liquefaction LLC | 5.875% | 6/30/26 | BBB– | 1,625,896 | |||||||||||||||||||||||
| 550 | Saudi Arabian Oil Co, 144A | 2.250% | 11/24/30 | A1 | 559,767 | |||||||||||||||||||||||
| 500 | Sunoco LP / Sunoco Finance Corp | 6.000% | 4/15/27 | BB | 531,510 | |||||||||||||||||||||||
| 125 | Sunoco LP / Sunoco Finance Corp, 144A | 4.500% | 5/15/29 | BB | 130,000 | |||||||||||||||||||||||
| 670 | Targa Resources Partners LP / Targa Resources Partners Finance Corp | 4.250% | 11/15/23 | BB | 673,350 | |||||||||||||||||||||||
| 150 | Targa Resources Partners LP / Targa Resources Partners Finance Corp | 6.500% | 7/15/27 | BB | 162,750 | |||||||||||||||||||||||
| 1,350 | Total Capital International SA | 2.986% | 6/29/41 | Aa3 | 1,474,326 | |||||||||||||||||||||||
| 1,000 | Tullow Oil PLC, 144A | 6.250% | 4/15/22 | CCC+ | 795,000 | |||||||||||||||||||||||
| 975 | USA Compression Partners LP / USA Compression Finance Corp | 6.875% | 9/01/27 | BB– | 1,040,890 | |||||||||||||||||||||||
| 1,515 | WPX Energy Inc | 5.750% | 6/01/26 | BBB– | 1,592,644 | |||||||||||||||||||||||
| 100 | WPX Energy Inc | 4.500% | 1/15/30 | BBB– | 106,000 | |||||||||||||||||||||||
| 36,288 | Total Oil, Gas & Consumable Fuels | 38,679,980 | ||||||||||||||||||||||||||
| Paper & Forest Products – 0.1% | ||||||||||||||||||||||||||||
| 500 | Inversiones CMPC SA, 144A | 4.375% | 4/04/27 | BBB | 568,130 | |||||||||||||||||||||||
| Pharmaceuticals – 0.9% | ||||||||||||||||||||||||||||
| 2,000 | AbbVie Inc | 4.250% | 11/21/49 | BBB+ | 2,506,738 | |||||||||||||||||||||||
| 1,050 | Bausch Health Americas Inc, 144A | 8.500% | 1/31/27 | B | 1,167,779 | |||||||||||||||||||||||
| 350 | Bausch Health Cos Inc, 144A | 5.000% | 1/30/28 | B | 360,689 | |||||||||||||||||||||||
| 1,360 | Eli Lilly and Co | 2.250% | 5/15/50 | A+ | 1,333,999 | |||||||||||||||||||||||
| 200 | Horizon Therapeutics USA Inc, 144A | 5.500% | 8/01/27 | Ba3 | 214,764 | |||||||||||||||||||||||
| 710 | Royalty Pharma PLC, 144A | 2.200% | 9/02/30 | BBB– | 728,701 | |||||||||||||||||||||||
| 5,670 | Total Pharmaceuticals | 6,312,670 | ||||||||||||||||||||||||||
| Professional Services – 0.0% | ||||||||||||||||||||||||||||
| 250 | ASGN Inc, 144A | 4.625% | 5/15/28 | BB– | 260,000 | |||||||||||||||||||||||
| Real Estate Management & Development – 0.3% | ||||||||||||||||||||||||||||
| 575 | Country Garden Holdings Co Ltd, Reg S | 4.750% | 9/28/23 | Baa3 | 588,616 | |||||||||||||||||||||||
| 1,500 | Hunt Cos Inc, 144A | 6.250% | 2/15/26 | BB– | 1,537,500 | |||||||||||||||||||||||
| 2,075 | Total Real Estate Management & Development | 2,126,116 | ||||||||||||||||||||||||||
41
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Road & Rail – 0.8% | ||||||||||||||||||||||||||||
| $ | 1,350 | CSX Corp | 3.800% | 11/01/46 | BBB+ | $ | 1,616,248 | |||||||||||||||||||||
| 350 | ENA Master Trust, 144A | 4.000% | 5/19/48 | Baa1 | 377,125 | |||||||||||||||||||||||
| 750 | Rumo Luxembourg Sarl, 144A | 5.250% | 1/10/28 | BB | 812,250 | |||||||||||||||||||||||
| 1,500 | Union Pacific Corp | 3.839% | 3/20/60 | A– | 1,852,781 | |||||||||||||||||||||||
| 1,000 | United Rentals North America Inc | 4.875% | 1/15/28 | BB– | 1,065,000 | |||||||||||||||||||||||
| 4,950 | Total Road & Rail | 5,723,404 | ||||||||||||||||||||||||||
| Semiconductors & Semiconductor Equipment – 0.3% | ||||||||||||||||||||||||||||
| 1,665 | Broadcom Corp / Broadcom Cayman Finance Ltd | 3.875% | 1/15/27 | BBB– | 1,870,842 | |||||||||||||||||||||||
| Software – 0.2% | ||||||||||||||||||||||||||||
| 100 | Camelot Finance SA, 144A | 4.500% | 11/01/26 | B | 104,375 | |||||||||||||||||||||||
| 925 | SS&C Technologies Inc, 144A | 5.500% | 9/30/27 | B+ | 987,918 | |||||||||||||||||||||||
| 1,025 | Total Software | 1,092,293 | ||||||||||||||||||||||||||
| Specialty Retail – 0.9% | ||||||||||||||||||||||||||||
| 1,645 | AutoNation Inc | 3.800% | 11/15/27 | BBB– | 1,818,859 | |||||||||||||||||||||||
| 450 | Lithia Motors Inc, 144A | 4.625% | 12/15/27 | BB | 474,750 | |||||||||||||||||||||||
| 2,050 | O’Reilly Automotive Inc | 3.900% | 6/01/29 | Baa1 | 2,409,614 | |||||||||||||||||||||||
| 100 | Staples Inc, 144A | 7.500% | 4/15/26 | B1 | 104,427 | |||||||||||||||||||||||
| 1,550 | Staples Inc, 144A | 10.750% | 4/15/27 | B3 | 1,542,250 | |||||||||||||||||||||||
| 5,795 | Total Specialty Retail | 6,349,900 | ||||||||||||||||||||||||||
| Technology Hardware, Storage & Peripherals – 0.0% | ||||||||||||||||||||||||||||
| 250 | NCR Corp, 144A | 5.000% | 10/01/28 | BB– | 263,750 | |||||||||||||||||||||||
| Tobacco – 0.3% | ||||||||||||||||||||||||||||
| 1,070 | Altria Group Inc | 4.500% | 5/02/43 | A3 | 1,224,189 | |||||||||||||||||||||||
| 510 | BAT Capital Corp | 2.259% | 3/25/28 | BBB+ | 529,174 | |||||||||||||||||||||||
| 1,580 | Total Tobacco | 1,753,363 | ||||||||||||||||||||||||||
| Trading Companies & Distributors – 0.4% | ||||||||||||||||||||||||||||
| 1,120 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust | 6.500% | 7/15/25 | BBB | 1,338,649 | |||||||||||||||||||||||
| 325 | Beacon Roofing Supply Inc, 144A | 4.500% | 11/15/26 | BB | 340,437 | |||||||||||||||||||||||
| 460 | Fortress Transportation and Infrastructure Investors LLC, 144A | 6.750% | 3/15/22 | Ba3 | 461,150 | |||||||||||||||||||||||
| 200 | WESCO Distribution Inc, 144A | 7.125% | 6/15/25 | BB– | 219,966 | |||||||||||||||||||||||
| 2,105 | Total Trading Companies & Distributors | 2,360,202 | ||||||||||||||||||||||||||
| Wireless Telecommunication Services – 0.9% | ||||||||||||||||||||||||||||
| 900 | C&W Senior Financing DAC, 144A | 6.875% | 9/15/27 | B+ | 970,983 | |||||||||||||||||||||||
| 1,000 | Hughes Satellite Systems Corp | 6.625% | 8/01/26 | BB | 1,131,470 | |||||||||||||||||||||||
| 1,040 | Millicom International Cellular SA, 144A | 5.125% | 1/15/28 | BB+ | 1,107,600 | |||||||||||||||||||||||
| 200 | Millicom International Cellular SA, 144A | 4.500% | 4/27/31 | BB+ | 216,000 | |||||||||||||||||||||||
| 1,350 | Telecom Italia SpA/Milano, 144A | 5.303% | 5/30/24 | BB+ | 1,468,125 | |||||||||||||||||||||||
| 1,010 | T-Mobile USA Inc, 144A | 3.875% | 4/15/30 | BBB– | 1,169,590 | |||||||||||||||||||||||
| 5,500 | Total Wireless Telecommunication Services | 6,063,768 | ||||||||||||||||||||||||||
| $ | 249,901 | Total Corporate Bonds (cost $250,925,447) | 272,615,252 | |||||||||||||||||||||||||
42
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES – 31.2% | ||||||||||||||||||||||||||||
| $ | 1,886 | AASET 2019-1 Trust, 144A | 3.844% | 5/15/39 | BBB | $ | 1,781,151 | |||||||||||||||||||||
| 651 | AASET 2020-1 Trust, 144A | 4.335% | 1/16/40 | BBB | 558,549 | |||||||||||||||||||||||
| 1,441 | Adams Outdoor Advertising LP, 144A | 4.810% | 11/15/48 | A | 1,519,621 | |||||||||||||||||||||||
| 1,150 | AIMCO CLO 10 Ltd, 144A, (3-Month LIBOR reference rate + 3.550% spread), (3) | 3.766% | 7/22/32 | BBB– | 1,151,004 | |||||||||||||||||||||||
| 1,150 | AIMCO CLO Series 2017-A, 144A, (3-Month LIBOR reference rate + 3.680% spread), (3) | 3.898% | 7/20/29 | Baa3 | 1,150,031 | |||||||||||||||||||||||
| 2,155 | American Homes 4 Rent 2014-SFR2 Trust, 144A | 3.786% | 10/17/36 | Aaa | 2,323,619 | |||||||||||||||||||||||
| 265 | AMSR 2019-SFR1 Trust, 144A | 3.247% | 1/19/39 | Baa2 | 273,673 | |||||||||||||||||||||||
| 1,482 | AMSR 2020-SFR1 Trust, 144A | 2.419% | 4/17/37 | Aa3 | 1,521,463 | |||||||||||||||||||||||
| 1,000 | Angel Oak Mortgage Trust 2019-5, 144A | 3.957% | 10/25/49 | BB | 1,003,838 | |||||||||||||||||||||||
| 1,000 | Apidos CLO XXIX, 144A, (3-Month LIBOR reference rate + 1.550% spread), (3) | 1.765% | 7/25/30 | AA | 994,806 | |||||||||||||||||||||||
| 1,347 | Applebee’s Funding LLC / IHOP Funding LLC, 144A | 4.194% | 6/07/49 | BBB | 1,328,203 | |||||||||||||||||||||||
| 2,100 | Avis Budget Rental Car Funding AESOP LLC, 144A | 4.150% | 9/20/23 | BBB | 2,133,282 | |||||||||||||||||||||||
| 1,200 | Banc of America Commercial Mortgage Trust 2015-UBS7 | 4.359% | 9/15/48 | A– | 1,060,629 | |||||||||||||||||||||||
| 1,250 | BANK 2019-BNK24 | 2.929% | 11/15/62 | AAA | 1,391,947 | |||||||||||||||||||||||
| 218 | Bear Stearns Commercial Mortgage Securities Trust 2005-PWR7 | 5.117% | 2/11/41 | Ba1 | 216,875 | |||||||||||||||||||||||
| 1,500 | Benchmark 2020-B18 Mortgage Trust, 144A | 4.139% | 7/15/53 | B– | 1,508,978 | |||||||||||||||||||||||
| 1,000 | Benchmark 2020-IG3 Mortgage Trust, 144A | 3.654% | 9/15/48 | N/R | 1,066,702 | |||||||||||||||||||||||
| 1,000 | Bojangles Issuer LLC, 144A | 3.832% | 10/20/50 | N/R | 1,021,550 | |||||||||||||||||||||||
| 4,177 | BX Commercial Mortgage Trust 2019-XL, 144A, (1-Month LIBOR reference rate + 0.920% spread), (3) | 1.079% | 10/15/36 | Aaa | 4,184,698 | |||||||||||||||||||||||
| 949 | BX Commercial Mortgage Trust 2019-XL, 144A, (1-Month LIBOR reference rate + 1.250% spread), (3) | 1.409% | 10/15/36 | A3 | 946,916 | |||||||||||||||||||||||
| 949 | BX Commercial Mortgage Trust 2019-XL, 144A, (1-Month LIBOR reference rate + 1.800% spread), (3) | 1.959% | 10/15/36 | N/R | 942,157 | |||||||||||||||||||||||
| 500 | Cars Net Lease Mortgage Notes Series 2020-1, 144A | 3.100% | 12/15/50 | A | 499,700 | |||||||||||||||||||||||
| 1,250 | Cars Net Lease Mortgage Notes Series 2020-1, 144A | 4.690% | 12/15/50 | BBB | 1,249,775 | |||||||||||||||||||||||
| 1,150 | CARS-DB4 LP, 144A | 4.520% | 2/15/50 | BBB | 1,202,994 | |||||||||||||||||||||||
| 1,000 | Cayuga Park CLO Ltd, 144A, (3-Month LIBOR reference rate + 2.100% spread), (3) | 2.332% | 7/17/31 | AA | 1,001,146 | |||||||||||||||||||||||
| 705 | CD 2016-CD1 Mortgage Trust | 3.631% | 8/10/49 | A– | 690,716 | |||||||||||||||||||||||
| 50 | CF 2020-P1 Mortgage Trust, 144A | 2.840% | 4/15/25 | N/R | 51,871 | |||||||||||||||||||||||
| 750 | CF 2020-P1 Mortgage Trust, 144A | 10.010% | 4/15/52 | N/R | 832,580 | |||||||||||||||||||||||
| 750 | CF 2020-P1 Mortgage Trust, 144A | 3.603% | 4/15/52 | N/R | 756,751 | |||||||||||||||||||||||
| 1,432 | CF Hippolyta LLC, 144A | 2.280% | 7/15/60 | A– | 1,453,722 | |||||||||||||||||||||||
| 716 | CF Hippolyta LLC, 144A | 2.600% | 7/15/60 | A– | 722,626 | |||||||||||||||||||||||
| 384 | CHL Mortgage Pass-Through Trust 2005-27 | 5.500% | 12/25/35 | N/R | 361,129 | |||||||||||||||||||||||
| 700 | CIFC Funding Ltd, 144A, (3-Month LIBOR reference rate + 2.200% spread), (3) | 2.482% | 8/24/32 | AA | 703,858 | |||||||||||||||||||||||
43
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
| $ | 2,750 | Citigroup Commercial Mortgage Trust 2015-GC29 | 3.758% | 4/10/48 | AA– | $ | 2,923,976 | |||||||||||||||||||||
| 1,690 | Citigroup Commercial Mortgage Trust 2015-GC29 | 4.151% | 4/10/48 | A– | 1,728,186 | |||||||||||||||||||||||
| 325 | Citigroup Commercial Mortgage Trust 2016-GC36 | 3.349% | 2/10/49 | Aaa | 356,552 | |||||||||||||||||||||||
| 400 | COMM 2013-CCRE10 Mortgage Trust | 4.210% | 8/10/46 | Aaa | 434,075 | |||||||||||||||||||||||
| 750 | COMM 2014-LC17 Mortgage Trust | 4.188% | 10/10/47 | AAA | 826,819 | |||||||||||||||||||||||
| 1,615 | COMM 2015-CCRE22 Mortgage Trust | 4.106% | 3/10/48 | A– | 1,706,117 | |||||||||||||||||||||||
| 1,000 | COMM 2015-CCRE22 Mortgage Trust, 144A | 3.000% | 3/10/48 | BB– | 732,199 | |||||||||||||||||||||||
| 1,000 | COMM 2015-CCRE24 Mortgage Trust | 4.379% | 8/10/48 | AA– | 1,101,368 | |||||||||||||||||||||||
| 2,260 | COMM 2015-CCRE26 Mortgage Trust | 4.480% | 10/10/48 | A– | 2,391,810 | |||||||||||||||||||||||
| 826 | Connecticut Avenue Securities Trust 2018-R07, 144A, (1-Month LIBOR reference rate + 2.400% spread), (3) | 2.550% | 4/25/31 | B+ | 824,990 | |||||||||||||||||||||||
| 1,657 | Connecticut Avenue Securities Trust 2019-R07, 144A, (1-Month LIBOR reference rate + 2.100% spread), (3) | 2.248% | 10/25/39 | B | 1,651,467 | |||||||||||||||||||||||
| 500 | Connecticut Avenue Securities Trust 2020-R02, 144A, (1-Month LIBOR reference rate + 2.000% spread), (3) | 2.148% | 1/25/40 | B | 496,477 | |||||||||||||||||||||||
| 492 | Corevest American Finance 2020-1 Trust, 144A | 1.832% | 3/15/50 | AAA | 498,914 | |||||||||||||||||||||||
| 180 | CPT 2019 Mortgage Trust, 144A | 2.997% | 11/13/39 | N/R | 176,022 | |||||||||||||||||||||||
| 53 | Credit Suisse First Boston Mortgage Securities Corp | 5.750% | 9/25/33 | AAA | 54,044 | |||||||||||||||||||||||
| 1,402 | DB Master Finance LLC, 144A | 3.787% | 5/20/49 | BBB | 1,436,942 | |||||||||||||||||||||||
| 653 | DB Master Finance LLC, 144A | 4.021% | 5/20/49 | BBB | 687,515 | |||||||||||||||||||||||
| 3,570 | Domino’s Pizza Master Issuer LLC, 144A | 3.082% | 7/25/47 | BBB+ | 3,588,662 | |||||||||||||||||||||||
| 1,995 | Driven Brands Funding LLC, 144A | 3.786% | 7/20/50 | BBB– | 2,074,760 | |||||||||||||||||||||||
| 1,000 | Ellington Financial Mortgage Trust 2019-1, 144A | 3.587% | 6/25/59 | BBB | 1,004,720 | |||||||||||||||||||||||
| 714 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 2.200% spread), (3) | 2.348% | 1/25/30 | AAA | 716,797 | |||||||||||||||||||||||
| 58 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 2.250% spread), (3) | 2.398% | 7/25/30 | BB | 58,026 | |||||||||||||||||||||||
| 40 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 2.550% spread), (3) | 2.698% | 12/25/30 | B+ | 40,407 | |||||||||||||||||||||||
| 4,091 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 3.000% spread), (3) | 3.148% | 7/25/24 | Aaa | 3,970,349 | |||||||||||||||||||||||
| 260 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 4.250% spread), (3) | 4.398% | 4/25/29 | Aaa | 272,715 | |||||||||||||||||||||||
| 290 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 5.900% spread), (3) | 6.048% | 10/25/28 | BBB | 304,279 | |||||||||||||||||||||||
| 176 | Fannie Mae Connecticut Avenue Securities, (1-Month LIBOR reference rate + 6.950% spread), (3) | 7.098% | 8/25/28 | A3 | 186,876 | |||||||||||||||||||||||
| — | (16) | Fannie Mae Interest Strip, Series FNS 366 25, (I/O) | 5.000% | 9/25/24 | Aaa | 5 | ||||||||||||||||||||||
| 21,000 | Fannie Mae TBA, (MDR), (WI/DD) | 2.000% | TBA | Aaa | 21,811,262 | |||||||||||||||||||||||
| — | (16) | Fannie Mae Mortgage Pool FN AL1187 | 5.500% | 7/01/24 | N/R | 376 | ||||||||||||||||||||||
| 28 | Fannie Mae Mortgage Pool FN 745101 | 6.000% | 4/01/32 | Aaa | 31,591 | |||||||||||||||||||||||
| 126 | Fannie Mae Mortgage Pool FN 745324 | 6.000% | 3/01/34 | Aaa | 138,890 | |||||||||||||||||||||||
44
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
| $ | 188 | Fannie Mae Mortgage Pool FN FM1138 | 6.500% | 8/01/37 | Aaa | $ | 217,839 | |||||||||||||||||||||
| 28 | Fannie Mae Mortgage Pool FN 256890 | 6.000% | 9/01/37 | Aaa | 32,549 | |||||||||||||||||||||||
| 275 | Fannie Mae Mortgage Pool FN FM1136 | 5.500% | 3/01/39 | Aaa | 321,983 | |||||||||||||||||||||||
| 47 | Fannie Mae Mortgage Pool FN FM1137 | 6.000% | 9/01/39 | Aaa | 56,866 | |||||||||||||||||||||||
| 42 | Fannie Mae Mortgage Pool FN FM1108 | 5.000% | 11/01/44 | Aaa | 48,424 | |||||||||||||||||||||||
| 3,050 | Fannie Mae Mortgage Pool FN AS7499 | 3.500% | 7/01/46 | N/R | 3,334,685 | |||||||||||||||||||||||
| 610 | Fannie Mae Mortgage Pool FN MA3228 | 3.000% | 11/01/47 | Aaa | 628,662 | |||||||||||||||||||||||
| 1,027 | Fannie Mae Mortgage Pool FN BM5839 | 3.500% | 11/01/47 | Aaa | 1,122,289 | |||||||||||||||||||||||
| 1,697 | Fannie Mae Mortgage Pool FN BM5126 | 3.500% | 1/01/48 | N/R | 1,853,979 | |||||||||||||||||||||||
| 294 | Fannie Mae Mortgage Pool FN CA3960 | 3.000% | 8/01/49 | Aaa | 321,147 | |||||||||||||||||||||||
| 16 | Fannie Mae Mortgage Pool FN 946228, (12-Month LIBOR reference rate + 1.531% spread), (3) | 2.156% | 9/01/37 | N/R | 15,779 | |||||||||||||||||||||||
| 1 | Fannie Mae Mortgage Pool FN 905597, (12-Month LIBOR reference rate + 1.875% spread), (3) | 3.875% | 12/01/36 | N/R | 824 | |||||||||||||||||||||||
| 258 | Fannie Mae REMICS Trust 2018-81, (I/O) | 3.000% | 11/25/48 | Aaa | 29,899 | |||||||||||||||||||||||
| 258 | Fannie Mae REMICS Trust 2018-81 | 0.000% | 11/25/48 | N/R | 236,306 | |||||||||||||||||||||||
| 355 | Fannie Mae REMICS Trust 2013-98, (I/O), (1-Month LIBOR reference rate + 5.950% spread), (3) | 5.802% | 9/25/43 | Aaa | 80,513 | |||||||||||||||||||||||
| 187 | Flagstar Mortgage Trust 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 186,950 | |||||||||||||||||||||||
| 93 | Flagstar Mortgage Trust 2017-2, 144A | 4.109% | 10/25/47 | A3 | 97,829 | |||||||||||||||||||||||
| 2,357 | Freddie Mac Gold Pool FG G60138 | 3.500% | 8/01/45 | Aaa | 2,590,064 | |||||||||||||||||||||||
| 2,488 | Freddie Mac Gold Pool FG G60238 | 3.500% | 10/01/45 | Aaa | 2,720,201 | |||||||||||||||||||||||
| 1,822 | Freddie Mac Multifamily Structured Pass Through Certificates, (I/O) | 2.805% | 10/25/55 | N/R | 400,042 | |||||||||||||||||||||||
| 152 | Freddie Mac STACR Remic Trust 2019-Hqa4, 144A, (1-Month LIBOR reference rate + 2.050% spread), (3) | 2.198% | 11/25/49 | B+ | 151,292 | |||||||||||||||||||||||
| 40 | Freddie Mac STACR Remic Trust 2020-DNA1, 144A, (1-Month LIBOR reference rate + 1.700% spread), (3) | 1.848% | 12/25/49 | BB– | 39,699 | |||||||||||||||||||||||
| 1,015 | Freddie Mac STACR Remic Trust 2020-DNA2, 144A, (1-Month LIBOR reference rate + 1.850% spread), (3) | 1.998% | 2/25/50 | BB | 1,008,771 | |||||||||||||||||||||||
| 925 | Freddie Mac STACR Remic Trust 2020-HQA2, 144A, (1-Month LIBOR reference rate + 3.100% spread), (3) | 3.248% | 3/25/50 | Ba2 | 931,360 | |||||||||||||||||||||||
| 785 | Freddie Mac STACR Trust 2019-HQA2, 144A, (1-Month LIBOR reference rate + 2.050% spread), (3) | 2.198% | 4/25/49 | B+ | 773,780 | |||||||||||||||||||||||
| 286 | Freddie Mac Strips, Series FHS 326 350 | 3.500% | 3/15/44 | N/R | 311,615 | |||||||||||||||||||||||
| 296 | Freddie Mac Strips, Series FHS 327 S8, (I/O), (1-Month LIBOR reference rate + 5.920% spread), (3) | 5.761% | 3/15/44 | N/R | 58,057 | |||||||||||||||||||||||
| 138 | Freddie Mac Structured Agency Credit Risk Debt Notes, 144A | 4.006% | 9/25/47 | Ba3 | 138,622 | |||||||||||||||||||||||
| 231 | Freddie Mac Structured Agency Credit Risk Debt Notes, 144A | 4.481% | 11/25/48 | Aaa | 230,648 | |||||||||||||||||||||||
| 21,000 | Ginnie Mae II Pool (WI/DD) | 2.500% | 1/20/51 | Aaa | 22,226,378 | |||||||||||||||||||||||
| 100 | GS Mortgage Securities Trust 2013-GC13 | 4.051% | 7/10/46 | Aaa | 107,000 | |||||||||||||||||||||||
| 1,000 | GS Mortgage Securities Trust 2016-GS4 | 3.811% | 11/10/49 | A– | 948,841 | |||||||||||||||||||||||
45
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
| $ | 225 | GS Mortgage Securities Trust 2019-GC38 | 4.158% | 2/10/52 | AAA | $ | 261,749 | |||||||||||||||||||||
| 1,000 | GS Mortgage Securities Trust 2019-GC40, 144A | 3.550% | 7/10/52 | BBB– | 994,147 | |||||||||||||||||||||||
| 1,000 | GS Mortgage Securities Trust 2020-GSA2 | 2.012% | 12/12/53 | AAA | 1,029,339 | |||||||||||||||||||||||
| 289 | GS Mortgage-Backed Securities Corp Trust 2019-PJ1, 144A | 4.000% | 8/25/49 | Aa1 | 296,278 | |||||||||||||||||||||||
| 47 | GS Mortgage-Backed Securities Corp Trust 2019-PJ2, 144A | 4.000% | 11/25/49 | Aaa | 47,350 | |||||||||||||||||||||||
| 122 | GS Mortgage-Backed Securities Corp Trust 2019-PJ2, 144A | 4.000% | 11/25/49 | Aa1 | 123,117 | |||||||||||||||||||||||
| 1,500 | Hardee’s Funding LLC, 144A | 3.981% | 12/20/50 | BBB | 1,537,605 | |||||||||||||||||||||||
| 1,078 | Hilton Grand Vacations Trust 2019-A, 144A | 2.840% | 7/25/33 | A– | 1,094,657 | |||||||||||||||||||||||
| 2,345 | Horizon Aircraft Finance II Ltd, 144A | 3.721% | 7/15/39 | A | 2,262,661 | |||||||||||||||||||||||
| 471 | Horizon Aircraft Finance II Ltd, 144A | 6.900% | 7/15/39 | B | 283,760 | |||||||||||||||||||||||
| 966 | Horizon Aircraft Finance III Ltd, 144A | 3.425% | 11/15/39 | A | 933,216 | |||||||||||||||||||||||
| 976 | Horizon Aircraft Finance III Ltd, 144A | 4.458% | 11/15/39 | BBB | 836,866 | |||||||||||||||||||||||
| 500 | Hudson Yards 2019-30HY Mortgage Trust, 144A | 3.443% | 7/10/39 | BBB– | 535,880 | |||||||||||||||||||||||
| 1,700 | Hudson Yards, 144A | 2.943% | 12/10/41 | N/R | 1,558,255 | |||||||||||||||||||||||
| 863 | Impac Secured Assets CMN Owner Trust | 8.000% | 10/25/30 | CC | 844,900 | |||||||||||||||||||||||
| 2,927 | Invitation Homes 2018-SFR2 Trust, 144A, (1-Month LIBOR reference rate + 0.900% spread), (3) | 1.059% | 6/17/37 | Aaa | 2,933,459 | |||||||||||||||||||||||
| 3,246 | Invitation Homes 2018-SFR3 Trust, 144A, (1-Month LIBOR reference rate + 1.000% spread), (3) | 1.153% | 7/17/37 | Aaa | 3,246,501 | |||||||||||||||||||||||
| 77 | Invitation Homes 2018-SFR4 Trust, 144A, (1-Month LIBOR reference rate + 1.100% spread), (3) | 1.253% | 1/17/38 | Aaa | 77,695 | |||||||||||||||||||||||
| 352 | JP Morgan Alternative Loan Trust 2007-S1, (1-Month LIBOR reference rate + 0.280% spread), (3) | 0.428% | 4/25/47 | AAA | 341,773 | |||||||||||||||||||||||
| 335 | JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16 | 4.166% | 12/15/46 | Aaa | 363,819 | |||||||||||||||||||||||
| 719 | JP Morgan Mortgage Trust 2017-2, 144A | 3.500% | 5/25/47 | Aaa | 721,247 | |||||||||||||||||||||||
| 412 | JP Morgan Mortgage Trust 2018-3, 144A | 3.500% | 9/25/48 | AA+ | 421,743 | |||||||||||||||||||||||
| 133 | JP Morgan Mortgage Trust 2018-4, 144A | 3.500% | 10/25/48 | AA+ | 137,744 | |||||||||||||||||||||||
| 547 | JP Morgan Mortgage Trust 2018-5, 144A | 3.500% | 10/25/48 | AAA | 567,094 | |||||||||||||||||||||||
| 941 | JP Morgan Mortgage Trust 2018-6, 144A | 3.925% | 12/25/48 | Ba1 | 952,475 | |||||||||||||||||||||||
| 35 | JP Morgan Mortgage Trust 2018-8, 144A | 4.000% | 1/25/49 | Aaa | 35,236 | |||||||||||||||||||||||
| 493 | JP Morgan Mortgage Trust 2019-1, 144A | 4.000% | 5/25/49 | AAA | 508,912 | |||||||||||||||||||||||
| 63 | JP Morgan Mortgage Trust 2019-3, 144A | 4.766% | 9/25/49 | Aa1 | 67,560 | |||||||||||||||||||||||
| 185 | JP Morgan Mortgage Trust 2019-INV1, 144A, (1-Month LIBOR reference rate + 0.950% spread), (3) | 1.098% | 10/25/49 | Aaa | 185,022 | |||||||||||||||||||||||
| 245 | JP Morgan Mortgage Trust 2020-1, 144A | 3.888% | 6/25/50 | A3 | 259,867 | |||||||||||||||||||||||
| 175 | JPMBB Commercial Mortgage Securities Trust 2014-C21 | 3.997% | 8/15/47 | Aaa | 191,928 | |||||||||||||||||||||||
| 1,600 | JPMBB Commercial Mortgage Securities Trust 2014-C22 | 4.554% | 9/15/47 | A– | 1,481,034 | |||||||||||||||||||||||
| 1,500 | JPMCC Commercial Mortgage Securities Trust 2017-JP5 | 3.723% | 3/15/50 | Aaa | 1,713,317 | |||||||||||||||||||||||
| 326 | Lunar Aircraft 2020-1 Ltd, 144A | 4.335% | 2/15/45 | BB | 252,963 | |||||||||||||||||||||||
| 201 | Lunar Aircraft 2020-1 Ltd, 144A | 6.413% | 2/15/45 | B | 89,339 | |||||||||||||||||||||||
46
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
| $ | 1,582 | MASTR Reperforming Loan Trust 2005-1, 144A | 7.500% | 8/25/34 | N/R | $ | 1,441,483 | |||||||||||||||||||||
| 233 | Morgan Stanley ABS Capital I Inc Trust 2004-HE6, (1-Month LIBOR reference rate + 0.825% spread), (3) | 0.973% | 8/25/34 | BBB | 229,697 | |||||||||||||||||||||||
| 1,000 | MRCD Mortgage Trust, 144A | 2.718% | 12/15/36 | N/R | 982,855 | |||||||||||||||||||||||
| 1,603 | MVW 2019-2 LLC, 144A | 2.680% | 10/20/38 | BBB+ | 1,612,980 | |||||||||||||||||||||||
| 1,213 | MVW Owner Trust 2019-1, 144A | 3.330% | 11/20/36 | BBB+ | 1,234,911 | |||||||||||||||||||||||
| 1,000 | Myers Park CLO Ltd, 144A, (3-Month LIBOR reference rate + 1.600% spread), (3) | 1.818% | 10/20/30 | AA | 995,313 | |||||||||||||||||||||||
| 1,000 | Natixis Commercial Mortgage Securities Trust 2019-1776, 144A | 3.902% | 10/15/36 | Ba3 | 977,788 | |||||||||||||||||||||||
| 1,500 | Natixis Commercial Mortgage Securities Trust 2019-MILE, 144A, (1-Month LIBOR reference rate + 3.500% spread), (3) | 3.659% | 7/15/36 | N/R | 1,433,130 | |||||||||||||||||||||||
| 1,500 | Natixis Commercial Mortgage Securities Trust 2019-MILE, 144A, (1-Month LIBOR reference rate + 4.250% spread), (3) | 4.409% | 7/15/36 | N/R | 1,418,253 | |||||||||||||||||||||||
| 300 | Navient Private Education Refi Loan Trust 2020-H, 144A | 2.780% | 1/15/69 | N/R | 305,333 | |||||||||||||||||||||||
| 1,000 | Neuberger Berman Loan Advisers CLO 27 Ltd, 144A, (3-Month LIBOR reference rate + 1.400% spread), (3) | 1.637% | 1/15/30 | AA | 992,762 | |||||||||||||||||||||||
| 40 | New Residential Mortgage Loan Trust 2017-1, 144A | 4.000% | 2/25/57 | Aaa | 43,635 | |||||||||||||||||||||||
| 1,792 | New Residential Mortgage Loan Trust 2017-6, 144A | 4.000% | 8/27/57 | Aaa | 1,935,347 | |||||||||||||||||||||||
| 93 | OBX 2018-1 Trust, 144A, (1-Month LIBOR reference rate + 0.650% spread), (3) | 0.798% | 6/25/57 | AAA | 92,418 | |||||||||||||||||||||||
| 1,000 | Octagon Investment Partners 46 Ltd, 144A, (3-Month LIBOR reference rate + 2.200% spread), (3) | 2.449% | 7/15/33 | AA | 1,001,394 | |||||||||||||||||||||||
| 1,150 | One Bryant Park Trust 2019-OBP, 144A | 2.516% | 9/15/54 | Aaa | 1,228,871 | |||||||||||||||||||||||
| 1,387 | Pioneer Aircraft Finance Ltd, 144A | 3.967% | 6/15/44 | A | 1,317,620 | |||||||||||||||||||||||
| 51 | RALI Series 2005-QS12 Trust | 5.500% | 8/25/35 | Caa2 | 51,060 | |||||||||||||||||||||||
| 203 | Sequoia Mortgage Trust 2012-4 | 3.500% | 9/25/42 | Aaa | 206,403 | |||||||||||||||||||||||
| 96 | Sequoia Mortgage Trust 2018-7, 144A | 4.000% | 9/25/48 | Aaa | 97,657 | |||||||||||||||||||||||
| 66 | Sequoia Mortgage Trust 2018-8, 144A | 4.000% | 11/25/48 | Aaa | 67,120 | |||||||||||||||||||||||
| 96 | Sequoia Mortgage Trust 2018-CH4, 144A | 4.500% | 10/25/48 | Aaa | 96,209 | |||||||||||||||||||||||
| 33 | Sequoia Mortgage Trust 2019-2, 144A | 4.000% | 6/25/49 | AAA | 33,351 | |||||||||||||||||||||||
| 690 | Sequoia Mortgage Trust 2020-3, 144A | 3.000% | 4/25/50 | AAA | 704,144 | |||||||||||||||||||||||
| 500 | ServiceMaster Funding LLC, 144A | 2.841% | 10/30/51 | BBB– | 509,175 | |||||||||||||||||||||||
| 1,807 | SERVPRO Master Issuer LLC, 144A | 3.882% | 10/25/49 | BBB– | 1,925,526 | |||||||||||||||||||||||
| 1,481 | Sesac Finance LLC, 144A | 5.216% | 7/25/49 | N/R | 1,569,295 | |||||||||||||||||||||||
| 2,361 | Settlement Fee Finance 2019-1 LLC, 144A | 3.840% | 11/01/49 | N/R | 2,342,090 | |||||||||||||||||||||||
| 435 | Shellpoint Co-Originator Trust 2017-2, 144A | 3.500% | 10/25/47 | Aaa | 434,839 | |||||||||||||||||||||||
| 500 | Sierra Ltd, 144A, (3-Month U.S. Treasury Bill reference rate + 3.250% spread), (3) | 3.308% | 12/28/22 | N/R | 507,150 | |||||||||||||||||||||||
| 620 | Sierra Timeshare 2019-2 Receivables Funding LLC, 144A | 4.540% | 5/20/36 | BB | 618,011 | |||||||||||||||||||||||
| 1,116 | Sierra Timeshare 2019-3 Receivables Funding LLC, 144A | 4.180% | 8/20/36 | BB | 1,097,931 | |||||||||||||||||||||||
| 730 | Sierra Timeshare Conduit Receivables Funding LLC, 144A | 3.200% | 3/20/34 | BBB | 737,583 | |||||||||||||||||||||||
47
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (continued) | ||||||||||||||||||||||||||||
| $ | 331 | S-Jets 2017-1 Ltd, 144A | 3.967% | 8/15/42 | BBB | $ | 321,250 | |||||||||||||||||||||
| 393 | S-Jets 2017-1 Ltd, 144A | 5.682% | 8/15/42 | BB | 341,463 | |||||||||||||||||||||||
| 1,914 | Sonic Capital LLC, 144A | 3.845% | 1/20/50 | BBB | 2,042,111 | |||||||||||||||||||||||
| 3,000 | STACR Trust 2018-DNA2, 144A, (1-Month LIBOR reference rate + 2.150% spread), (3) |
| 2.298% | 12/25/30 | B+ | 2,969,911 | ||||||||||||||||||||||
| 990 | START Ireland, 144A | 5.095% | 3/15/44 | BB | 841,911 | |||||||||||||||||||||||
| 1,083 | Start Ltd/Bermuda, 144A | 4.089% | 5/15/43 | BBB+ | 1,053,210 | |||||||||||||||||||||||
| 1,785 | Taco Bell Funding LLC, 144A | 4.377% | 5/25/46 | BBB | 1,795,355 | |||||||||||||||||||||||
| 735 | Taco Bell Funding LLC, 144A | 4.318% | 11/25/48 | BBB | 745,503 | |||||||||||||||||||||||
| 1,440 | Tesla Auto Lease Trust 2019-A, 144A | 5.480% | 5/22/23 | Ba3 | 1,520,618 | |||||||||||||||||||||||
| 200 | Tricon American Homes 2017-SFR1 Trust, 144A |
| 4.011% | 9/17/34 | N/R | 203,579 | ||||||||||||||||||||||
| 1,000 | UBS-Barclays Commercial Mortgage Trust 2013-C5, 144A |
| 3.649% | 3/10/46 | Aa3 | 1,002,514 | ||||||||||||||||||||||
| 192 | Vericrest Opportunity Loan Trust 2019-NPL2, 144A |
| 3.967% | 2/25/49 | N/R | 192,353 | ||||||||||||||||||||||
| 150 | Vericrest Opportunity Loan Trust 2019-NPL7, 144A |
| 3.967% | 10/25/49 | N/R | 149,808 | ||||||||||||||||||||||
| 324 | Verus Securitization Trust 2018-3, 144A |
| 4.108% | 10/25/58 | AAA | 332,160 | ||||||||||||||||||||||
| 1,000 | Verus Securitization Trust 2019-2, 144A |
| 3.781% | 5/25/59 | BBB– | 1,001,977 | ||||||||||||||||||||||
| 1,366 | Vivint Solar Financing V LLC, 144A | 7.370% | 4/30/48 | N/R | 1,451,866 | |||||||||||||||||||||||
| 1,462 | VR Funding LLC, 144A | 2.790% | 11/15/50 | N/R | 1,405,347 | |||||||||||||||||||||||
| 244 | VR Funding LLC, 144A | 6.420% | 11/15/50 | N/R | 235,076 | |||||||||||||||||||||||
| 65 | Wachovia Mortgage Loan Trust LLC Series 2005-B Trust |
| 2.693% | 10/20/35 | Aaa | 62,624 | ||||||||||||||||||||||
| 77 | Washington Mutual MSC Mortgage Pass-Through Certificates Series 2004-RA3 Trust |
| 5.978% | 8/25/38 | Aaa | 80,230 | ||||||||||||||||||||||
| 2,207 | Wendy’s Funding LLC, 144A | 3.573% | 3/15/48 | BBB | 2,274,806 | |||||||||||||||||||||||
| 2,630 | WFRBS Commercial Mortgage Trust 2011-C3, 144A |
| 5.335% | 3/15/44 | A1 | 2,588,667 | ||||||||||||||||||||||
| 350 | WFRBS Commercial Mortgage Trust 2013-C14 |
| 3.337% | 6/15/46 | Aaa | 369,880 | ||||||||||||||||||||||
| 550 | WFRBS Commercial Mortgage Trust 2013-C18 |
| 4.862% | 12/15/46 | A– | 528,682 | ||||||||||||||||||||||
| 1,500 | Wingstop Funding LLC, 144A | 2.841% | 12/05/50 | N/R | 1,530,405 | |||||||||||||||||||||||
| $ | 209,979 | Total Asset-Backed and Mortgage-Backed Securities (cost $209,533,666) |
| 211,527,789 | ||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS – 8.2% (5) |
| |||||||||||||||||||||||||||
| Aerospace & Defense – 0.3% | ||||||||||||||||||||||||||||
| $ | 2,450 | Transdigm, Inc., Term Loan E | 2.397% | 1-Month LIBOR | 2.250% | 5/30/25 | Ba3 | $ | 2,407,064 | |||||||||||||||||||
| Airlines – 0.1% | ||||||||||||||||||||||||||||
| 100 | Delta Air Lines, Inc., Term Loan B | 5.750% | 3-Month LIBOR | 4.750% | 4/29/23 | Baa2 | 101,241 | |||||||||||||||||||||
| 175 | Delta Air Lines SkyMiles, Term Loan B | 4.750% | 3-Month LIBOR | 3.750% | 10/20/27 | Baa1 | 181,891 | |||||||||||||||||||||
| 350 | United Air Lines, Inc., Term Loan B | 6.250% | 3-Month LIBOR | 5.250% | 6/20/27 | Baa3 | 365,248 | |||||||||||||||||||||
| 625 | Total Airlines | 648,380 | ||||||||||||||||||||||||||
| Auto Components – 0.2% | ||||||||||||||||||||||||||||
| 973 | Johnson Controls Inc., Term Loan B | 3.647% | 1-Month LIBOR | 3.500% | 4/30/26 | B1 | 971,264 | |||||||||||||||||||||
48
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||
| Auto Components (continued) | ||||||||||||||||||||||||||||
| $ | 450 | Les Schwab Tire Centers, Term Loan B | 4.250% | 3-Month LIBOR | 3.500% | 11/02/27 | B | $ | 450,562 | |||||||||||||||||||
| 1,423 | Total Auto Components | 1,421,826 | ||||||||||||||||||||||||||
| Beverages – 0.0% | ||||||||||||||||||||||||||||
| 225 | Arterra Wines Canada Inc, Term Loan | 4.250% | 3-Month LIBOR | 3.500% | 11/25/27 | B1 | 226,477 | |||||||||||||||||||||
| Building Products – 0.1% | ||||||||||||||||||||||||||||
| 985 | Quikrete Holdings, Inc., Term Loan B | 2.647% | 1-Month LIBOR | 2.500% | 1/31/27 | BB– | 983,183 | |||||||||||||||||||||
| Chemicals – 1.0% | ||||||||||||||||||||||||||||
| 2,456 | Messer Industries GmbH, Term Loan | 2.754% | 3-Month LIBOR | 2.500% | 3/01/26 | BB– | 2,441,832 | |||||||||||||||||||||
| 2,449 | PolyOne Corp, Term Loan B5 | 1.897% | 1-Month LIBOR | 1.750% | 1/30/26 | BB+ | 2,444,475 | |||||||||||||||||||||
| 1,945 | PQ Corp, Term Loan B | 2.464% | 3-Month LIBOR | 2.250% | 2/07/27 | BB– | 1,935,380 | |||||||||||||||||||||
| 6,850 | Total Chemicals | 6,821,687 | ||||||||||||||||||||||||||
| Commercial Services & Supplies – 1.2% | ||||||||||||||||||||||||||||
| 995 | Amentum Government Services Holdings LLC, Term Loan B | 3.647% | 1-Month LIBOR | 3.500% | 1/31/27 | B1 | 995,000 | |||||||||||||||||||||
| 1,885 | Filtration Group Corp, Term Loan, First Lien | 3.147% | 1-Month LIBOR | 3.000% | 3/28/25 | B | 1,870,708 | |||||||||||||||||||||
| 250 | GFL Environmental Inc, Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | BB– | 250,676 | |||||||||||||||||||||
| 1,488 | Gopher Resource LLC, Term Loan, First Lien | 4.250% | 1-Month LIBOR | 3.250% | 1/28/25 | B | 1,478,984 | |||||||||||||||||||||
| 1,469 | Granite Acquisition Inc, Term Loan B | 4.750% | 3-Month LIBOR | 3.750% | 12/17/21 | B+ | 1,476,128 | |||||||||||||||||||||
| 1,470 | Packers Holdings LLC, Term Loan B | 4.000% | 1-Month LIBOR | 3.000% | 12/04/24 | B2 | 1,467,492 | |||||||||||||||||||||
| 447 | Prime Security Services Borrower, LLC, Term Loan B1 | 4.250% | 1-Month LIBOR | 3.250% | 9/23/26 | BB– | 450,189 | |||||||||||||||||||||
| 245 | Prometric Holdings Inc, Term Loan, First Lien | 4.000% | 1-Month LIBOR | 3.000% | 1/29/25 | B2 | 239,841 | |||||||||||||||||||||
| 8,249 | Total Commercial Services & Supplies |
| 8,229,018 | |||||||||||||||||||||||||
| Communications Equipment – 0.1% | ||||||||||||||||||||||||||||
| 750 | Webcom Group Inc, Term Loan B | 3.898% | 1-Month LIBOR | 3.750% | 10/10/25 | B+ | 740,936 | |||||||||||||||||||||
| Containers & Packaging – 0.2% | ||||||||||||||||||||||||||||
| 247 | Pregis TopCo Corp, Term Loan, First Lien | 3.897% | 1-Month LIBOR | 3.750% | 8/01/26 | B2 | 246,881 | |||||||||||||||||||||
| 95 | Pregis TopCo Corp, Incremental Term Loan | 5.000% | 1-Month LIBOR | 4.250% | 8/01/26 | B2 | 94,644 | |||||||||||||||||||||
| 250 | Reynolds Group Holdings, Inc., Term Loan B2 | 3.397% | 1-Month LIBOR | 3.250% | 2/16/26 | B+ | 248,563 | |||||||||||||||||||||
| 319 | Reynolds Group Holdings, Inc., Term Loan, First Lien | 1.897% | 1-Month LIBOR | 1.750% | 2/04/27 | BB+ | 317,607 | |||||||||||||||||||||
| 198 | Tank Holding Corp, Term Loan | 3.398% | 3-Month LIBOR | 3.250% | 3/26/26 | B– | 194,229 | |||||||||||||||||||||
| 1,109 | Total Containers & Packaging | 1,101,924 | ||||||||||||||||||||||||||
| Distributors – 0.1% | ||||||||||||||||||||||||||||
| 748 | Spin Holdco Inc., Term Loan B1, First Lien | 4.250% | 3-Month LIBOR | 3.250% | 11/14/22 | B2 | 745,376 | |||||||||||||||||||||
| Diversified Telecommunication Services – 0.0% | ||||||||||||||||||||||||||||
| 312 | Zayo Group LLC, Initial Dollar Term Loan | 3.147% | 1-Month LIBOR | 3.000% | 3/09/27 | B1 | 310,579 | |||||||||||||||||||||
| Energy Equipment & Services – 0.1% | ||||||||||||||||||||||||||||
| 561 | ChampionX Holding Inc, Term Loan | 6.000% | 3-Month LIBOR | 5.000% | 6/03/27 | BBB– | 570,436 | |||||||||||||||||||||
49
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||
| Food & Staples Retailing – 0.1% | ||||||||||||||||||||||||||||
| $ | 200 | Chobani LLC, Term Loan | 4.500% | 1-Month LIBOR | 3.500% | 10/23/27 | B– | $ | 199,600 | |||||||||||||||||||
| 250 | GOBP Holdings Inc, Term Loan B | 2.898% | 1-Month LIBOR | 2.750% | 10/22/25 | B1 | 250,469 | |||||||||||||||||||||
| 450 | Total Food & Staples Retailing |
| 450,069 | |||||||||||||||||||||||||
| Food Products – 0.3% | ||||||||||||||||||||||||||||
| 1,762 | Hostess Brands LLC, Term Loan | 3.000% | 3-Month LIBOR | 2.250% | 8/03/25 | BB– | 1,755,527 | |||||||||||||||||||||
| Health Care Providers & Services – 0.9% | ||||||||||||||||||||||||||||
| 1,542 | Kindred at Home Hospice, Term Loan B, First Lien | 3.438% | 1-Month LIBOR | 3.250% | 7/02/25 | B1 | 1,538,228 | |||||||||||||||||||||
| 653 | Lifepoint Health, Inc., New Term Loan B | 3.897% | 1-Month LIBOR | 3.750% | 11/16/25 | B1 | 652,619 | |||||||||||||||||||||
| 2,198 | Pharmaceutical Product Development, Inc., Term Loan B | 3.500% | 1-Month LIBOR | 2.500% | 8/18/22 | Ba2 | 2,199,999 | |||||||||||||||||||||
| 1,483 | Select Medical Corporation, Term Loan B | 2.530% | 3-Month LIBOR | 2.250% | 3/06/25 | Ba2 | 1,474,117 | |||||||||||||||||||||
| 5,876 | Total Health Care Providers & Services |
| 5,864,963 | |||||||||||||||||||||||||
| Health Care Technology – 0.2% | ||||||||||||||||||||||||||||
| 1,186 | Emdeon, Inc., Term Loan | 3.500% | 3-Month LIBOR | 2.500% | 3/01/24 | B+ | 1,182,796 | |||||||||||||||||||||
| Hotels, Restaurants & Leisure – 0.2% | ||||||||||||||||||||||||||||
| 299 | Caesars Resort Collection, Term Loan | 4.647% | 1-Month LIBOR | 4.500% | 7/20/25 | B+ | 300,232 | |||||||||||||||||||||
| 500 | IRB Holding Corp., Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | B | 501,485 | |||||||||||||||||||||
| 494 | Scientific Games Corp., Initial Term Loan B5 | 2.897% | 1-Month LIBOR | 2.750% | 8/14/24 | B+ | 483,473 | |||||||||||||||||||||
| 1,293 | Total Hotels, Restaurants & Leisure |
| 1,285,190 | |||||||||||||||||||||||||
| Household Durables – 0.0% | ||||||||||||||||||||||||||||
| 300 | Weber-Stephen Products LLC, Term Loan B | 4.000% | 1-Month LIBOR | 3.250% | 10/30/27 | B1 | 300,788 | |||||||||||||||||||||
| Insurance – 0.4% | ||||||||||||||||||||||||||||
| 992 | AssuredPartners Inc, Incremental Term Loan B | 5.500% | 1-Month LIBOR | 4.500% | 2/13/27 | B1 | 996,227 | |||||||||||||||||||||
| 495 | Hub International Holdings, Inc., Incremental Term Loan B | 5.000% | 3-Month LIBOR | 4.000% | 4/25/25 | B | 497,190 | |||||||||||||||||||||
| 455 | OneDigital Borrower LLC, Term Loan | 5.250% | 3-Month LIBOR | 4.500% | 10/29/27 | N/R | 456,785 | |||||||||||||||||||||
| 45 | OneDigital Borrower LLC, Delayed Draw Term Loan (12) | 5.250% | 3-Month LIBOR | 4.500% | 10/29/27 | N/R | 45,090 | |||||||||||||||||||||
| 495 | USI Holdings Corporation, NewTerm Loan | 3.254% | 3-Month LIBOR | 3.000% | 5/16/24 | B | 488,647 | |||||||||||||||||||||
| 2,482 | Total Insurance | 2,483,939 | ||||||||||||||||||||||||||
| Internet & Direct Marketing Retail – 0.1% | ||||||||||||||||||||||||||||
| 475 | 1-800 Contacts, Term Loan, First Lien | 4.500% | 6-Month LIBOR | 3.750% | 11/08/27 | B | 476,226 | |||||||||||||||||||||
| IT Services – 0.3% | ||||||||||||||||||||||||||||
| 1,770 | NeuStar Inc, Term Loan B5 | 5.500% | 3-Month LIBOR | 4.500% | 8/08/24 | B+ | 1,725,792 | |||||||||||||||||||||
| Life Sciences Tools & Services – 0.0% | ||||||||||||||||||||||||||||
| 325 | Avantor Funding, Inc., Incremental Dollar Term Loan B4 | 3.500% | 1-Month LIBOR | 2.500% | 11/06/27 | BB+ | 326,017 | |||||||||||||||||||||
50
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||
| Machinery – 0.1% | ||||||||||||||||||||||||||||
| $ | 424 | Thyssenkrupp Elevator, Term Loan B | 4.570% | 6-Month LIBOR | 4.250% | 7/31/27 | B1 | $ | 427,721 | |||||||||||||||||||
| Media – 0.1% | ||||||||||||||||||||||||||||
| 299 | Banijay Group, Term Loan | 3.903% | 1-Month LIBOR | 3.750% | 3/01/25 | B1 | 296,133 | |||||||||||||||||||||
| 175 | Cablevision Lightpath LLC, Term Loan B | 3.750% | 3-Month LIBOR | 3.250% | 12/01/27 | B+ | 174,919 | |||||||||||||||||||||
| 474 | Total Media | 471,052 | ||||||||||||||||||||||||||
| Metals & Mining – 0.1% | ||||||||||||||||||||||||||||
| 485 | Zekelman Industries Inc, Term Loan | 2.143% | 1-Month LIBOR | 2.000% | 1/24/27 | BB | 482,475 | |||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||||||||||||||||||
| 248 | Delek US Holdings Inc., Incremental Term Loan B | 6.500% | 1-Month LIBOR | 5.500% | 3/30/25 | BB+ | 246,731 | |||||||||||||||||||||
| Paper & Forest Products – 0.1% | ||||||||||||||||||||||||||||
| 873 | Asplundh, Term Loan B | 2.647% | 1-Month LIBOR | 2.500% | 9/04/27 | BBB– | 876,906 | |||||||||||||||||||||
| Pharmaceuticals – 0.3% | ||||||||||||||||||||||||||||
| 1,473 | Endo Health Solutions, Inc., Term Loan B | 5.000% | 3-Month LIBOR | 4.250% | 4/29/24 | B+ | 1,454,885 | |||||||||||||||||||||
| 762 | Valeant Pharmaceuticals International, Inc., Term Loan, First Lien | 3.148% | 1-Month LIBOR | 3.000% | 6/02/25 | BB | 759,622 | |||||||||||||||||||||
| 2,235 | Total Pharmaceuticals | 2,214,507 | ||||||||||||||||||||||||||
| Professional Services – 0.4% | ||||||||||||||||||||||||||||
| 1,687 | Dun & Bradstreet Corp.,Term Loan, First Lien | 3.898% | 1-Month LIBOR | 3.750% | 2/08/26 | BB+ | 1,691,232 | |||||||||||||||||||||
| 831 | Nielsen Finance LLC, Term Loan B5 | 4.750% | 1-Month LIBOR | 3.750% | 6/04/25 | BBB– | 838,439 | |||||||||||||||||||||
| 2,518 | Total Professional Services | 2,529,671 | ||||||||||||||||||||||||||
| Road & Rail – 0.0% | ||||||||||||||||||||||||||||
| 245 | PODS LLC, Term Loan, First Lien | 3.750% | 1-Month LIBOR | 2.750% | 12/06/24 | B+ | 245,924 | |||||||||||||||||||||
| Semiconductors & Semiconductor Equipment – 0.2% | ||||||||||||||||||||||||||||
| 500 | Lumileds, Term Loan B, (WI/DD) | TBD | TBD | TBD | TBD | CCC | 290,053 | |||||||||||||||||||||
| 941 | Ultra Clean Holdings Inc, Term Loan B | 4.647% | 1-Month LIBOR | 4.500% | 8/27/25 | B+ | 937,617 | |||||||||||||||||||||
| 1,441 | Total Semiconductors & Semiconductor Equipment |
| 1,227,670 | |||||||||||||||||||||||||
| Software – 0.1% | ||||||||||||||||||||||||||||
| 322 | Thomson Reuters IP & S, Term Loan B | 3.147% | 1-Month LIBOR | 3.000% | 10/31/26 | B | 320,778 | |||||||||||||||||||||
| 124 | Ultimate Software, Incremental Term Loan | 4.750% | 3-Month LIBOR | 4.000% | 5/03/26 | B1 | 125,531 | |||||||||||||||||||||
| 446 | Total Software | 446,309 | ||||||||||||||||||||||||||
| Specialty Retail – 0.3% | ||||||||||||||||||||||||||||
| 491 | PetSmart Inc, Non-Consenting Term Loan B | 3.236% | 3-Month LIBOR | 3.000% | 3/11/22 | B1 | 485,183 | |||||||||||||||||||||
| 1,970 | Staples Inc, Term Loan | 5.214% | 3-Month LIBOR | 5.000% | 4/12/26 | B | 1,913,579 | |||||||||||||||||||||
| 2,461 | Total Specialty Retail | 2,398,762 | ||||||||||||||||||||||||||
| Technology Hardware, Storage & Peripherals – 0.3% | ||||||||||||||||||||||||||||
| 490 | Dell International LLC, Refinancing Term Loan B1 | 2.750% | 1-Month LIBOR | 2.000% | 9/19/25 | Baa3 | 490,893 | |||||||||||||||||||||
| 1,646 | Western Digital, Term Loan B | 1.897% | 1-Month LIBOR | 1.750% | 4/29/23 | BBB– | 1,646,296 | |||||||||||||||||||||
| 2,136 | Total Technology Hardware, Storage & Peripherals |
| 2,137,189 | |||||||||||||||||||||||||
51
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon (5) | Reference Rate (5) | Spread (5) | Maturity (6) | Ratings (2) | Value | |||||||||||||||||||||
| Textiles, Apparel & Luxury Goods – 0.2% | ||||||||||||||||||||||||||||
| $ | 1,375 | Samsonite IP Holdings Sarl, Term Loan B | 1.897% | 1-Month LIBOR | 1.750% | 4/25/25 | Ba2 | $ | 1,352,413 | |||||||||||||||||||
| Trading Companies & Distributors – 0.1% | ||||||||||||||||||||||||||||
| 434 | Univar, Inc., Term Loan B | 2.397% | 1-Month LIBOR | 2.250% | 7/01/24 | BB+ | 433,073 | |||||||||||||||||||||
| $ | 56,001 | Total Variable Rate Senior Loan Interests (cost $55,058,259) |
| 55,548,596 | ||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| $1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 7.3% | ||||||||||||||||||||||||||||
| Automobiles – 0.4% | ||||||||||||||||||||||||||||
| $ | 340 | General Motors Financial Co Inc | 5.700% | N/A (10) | BB+ | $ | 374,850 | |||||||||||||||||||||
| 2,470 | General Motors Financial Co Inc | 5.750% | N/A (10) | BB+ | 2,568,800 | |||||||||||||||||||||||
| 2,810 | Total Automobiles | 2,943,650 | ||||||||||||||||||||||||||
| Banks – 3.7% | ||||||||||||||||||||||||||||
| 1,195 | Bank of America Corp | 6.300% | N/A (10) | BBB | 1,395,163 | |||||||||||||||||||||||
| 2,530 | Bank of America Corp | 6.100% | N/A (10) | BBB | 2,866,616 | |||||||||||||||||||||||
| 3,000 | Citigroup Inc | 5.000% | N/A (10) | BBB– | 3,118,125 | |||||||||||||||||||||||
| 1,000 | Citigroup Inc | 6.300% | N/A (10) | BBB– | 1,084,000 | |||||||||||||||||||||||
| 2,000 | CoBank ACB | 6.250% | N/A (10) | BBB+ | 2,185,000 | |||||||||||||||||||||||
| 1,760 | Fifth Third Bancorp | 4.500% | N/A (10) | Baa3 | 1,871,760 | |||||||||||||||||||||||
| 750 | Huntington Bancshares Inc/OH | 5.625% | N/A (10) | Baa3 | 875,625 | |||||||||||||||||||||||
| 3,855 | JPMorgan Chase & Co | 5.000% | N/A (10) | BBB+ | 4,055,578 | |||||||||||||||||||||||
| 2,797 | KeyCorp | 5.000% | N/A (10) | Baa3 | 3,031,948 | |||||||||||||||||||||||
| 1,000 | M&T Bank Corp | 5.125% | N/A (10) | Baa2 | 1,086,250 | |||||||||||||||||||||||
| 3,000 | Truist Financial Corp | 4.800% | N/A (10) | Baa2 | 3,160,500 | |||||||||||||||||||||||
| 500 | Wells Fargo & Co | 5.875% | N/A (10) | Baa2 | 566,875 | |||||||||||||||||||||||
| 23,387 | Total Banks | 25,297,440 | ||||||||||||||||||||||||||
| Capital Markets – 0.9% | ||||||||||||||||||||||||||||
| 315 | Bank of New York Mellon Corp | 4.700% | N/A (10) | Baa1 | 347,382 | |||||||||||||||||||||||
| 1,325 | Charles Schwab Corp | 5.375% | N/A (10) | BBB | 1,475,719 | |||||||||||||||||||||||
| 3,840 | Goldman Sachs Group Inc, (4) | 5.500% | N/A (10) | BBB– | 4,185,600 | |||||||||||||||||||||||
| 5,480 | Total Capital Markets |
| 6,008,701 | |||||||||||||||||||||||||
| Consumer Finance – 0.2% | ||||||||||||||||||||||||||||
| 1,500 | Discover Financial Services | 6.125% | N/A (10) | Ba2 | 1,691,250 | |||||||||||||||||||||||
| Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||
| 1,710 | Voya Financial Inc | 6.125% | N/A (10) | BBB– | 1,808,325 | |||||||||||||||||||||||
| Electric Utilities – 0.3% | ||||||||||||||||||||||||||||
| 2,000 | Southern Co | 4.000% | 1/15/51 | BBB | 2,118,150 | |||||||||||||||||||||||
52
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Food Products – 0.4% | ||||||||||||||||||||||||||||
| $ | 2,780 | Land O’ Lakes Inc, 144A | 8.000% | N/A (10) | BB | $ | 2,842,550 | |||||||||||||||||||||
| Insurance – 0.3% | ||||||||||||||||||||||||||||
| 1,820 | MetLife Inc | 3.850% | N/A (10) | BBB | 1,920,100 | |||||||||||||||||||||||
| Multi-Utilities – 0.3% | ||||||||||||||||||||||||||||
| 150 | CMS Energy Corp | 4.750% | 6/01/50 | Baa2 | 168,895 | |||||||||||||||||||||||
| 1,500 | Sempra Energy | 4.875% | N/A (10) | BBB– | 1,603,125 | |||||||||||||||||||||||
| 1,650 | Total Multi-Utilities | 1,772,020 | ||||||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.1% | ||||||||||||||||||||||||||||
| 465 | Enbridge Inc | 5.750% | 7/15/80 | BBB– | 523,252 | |||||||||||||||||||||||
| Wireless Telecommunication Services – 0.4% | ||||||||||||||||||||||||||||
| 800 | Network i2i Ltd, 144A | 5.650% | N/A (10) | BB | 850,400 | |||||||||||||||||||||||
| 1,500 | Vodafone Group PLC | 7.000% | 4/04/79 | BB+ | 1,866,712 | |||||||||||||||||||||||
| 2,300 | Total Wireless Telecommunication Services | 2,717,112 | ||||||||||||||||||||||||||
| $ | 45,902 | Total $1,000 Par (or similar) Institutional Preferred (cost $45,879,194) |
| 49,642,550 | ||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
CONTINGENT CAPITAL SECURITIES – 3.5% (7) |
| |||||||||||||||||||||||||||
| Banks – 2.8% | ||||||||||||||||||||||||||||
| $ | 1,030 | Australia & New Zealand Banking Group Ltd/United Kingdom, 144A | 6.750% | N/A (10) | Baa2 | $ | 1,202,164 | |||||||||||||||||||||
| 600 | Banco Bilbao Vizcaya Argentaria SA | 6.500% | N/A (10) | Ba2 | 639,372 | |||||||||||||||||||||||
| 980 | Banco Mercantil del Norte SA/Grand Cayman, 144A | 6.750% | N/A (10) | Ba2 | 1,060,850 | |||||||||||||||||||||||
| 675 | Bancolombia SA | 4.625% | 12/18/29 | BB | 708,757 | |||||||||||||||||||||||
| 750 | Bangkok Bank PCL/Hong Kong, 144A | 5.000% | N/A (10) | Ba1 | 784,163 | |||||||||||||||||||||||
| 1,725 | Barclays PLC | 6.125% | N/A (10) | BBB– | 1,858,687 | |||||||||||||||||||||||
| 2,500 | BNP Paribas SA, 144A | 6.625% | N/A (10) | BBB | 2,728,125 | |||||||||||||||||||||||
| 2,000 | Credit Agricole SA, 144A | 8.125% | N/A (10) | BBB | 2,430,000 | |||||||||||||||||||||||
| 595 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A (10) | BB– | 675,325 | |||||||||||||||||||||||
| 1,500 | Lloyds Banking Group PLC | 7.500% | N/A (10) | Baa3 | 1,691,670 | |||||||||||||||||||||||
| 2,000 | Macquarie Bank Ltd/London, 144A | 6.125% | N/A (10) | BB+ | 2,140,000 | |||||||||||||||||||||||
| 2,000 | Natwest Group PLC | 8.000% | N/A (10) | BBB– | 2,330,000 | |||||||||||||||||||||||
| 950 | UniCredit SpA, Reg S | 8.000% | N/A (10) | B+ | 1,026,903 | |||||||||||||||||||||||
| 17,305 | Total Banks | 19,276,016 | ||||||||||||||||||||||||||
| Capital Markets – 0.7% | ||||||||||||||||||||||||||||
| 2,000 | Credit Suisse Group AG, 144A | 6.375% | N/A (10) | BB+ | 2,227,500 | |||||||||||||||||||||||
| 1,330 | Credit Suisse Group AG, 144A | 5.250% | N/A (10) | BB+ | 1,406,475 | |||||||||||||||||||||||
| 1,000 | UBS Group AG, 144A | 7.000% | N/A (10) | BBB | 1,096,250 | |||||||||||||||||||||||
| 4,330 | Total Capital Markets | 4,730,225 | ||||||||||||||||||||||||||
| $ | 21,635 | Total Contingent Capital Securities (cost $22,081,664) | 24,006,241 | |||||||||||||||||||||||||
53
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
SOVEREIGN DEBT – 3.4% | ||||||||||||||||||||||||||||
| Bermuda – 0.2% | ||||||||||||||||||||||||||||
| $ | 850 | Bermuda Government International Bond, 144A | 3.717% | 1/25/27 | A+ | $ | 949,883 | |||||||||||||||||||||
| 230 | Bermuda Government International Bond, 144A | 4.750% | 2/15/29 | A+ | 280,025 | |||||||||||||||||||||||
| 200 | Bermuda Government International Bond, 144A | 2.375% | 8/20/30 | A+ | 209,750 | |||||||||||||||||||||||
| 1,280 | Total Bermuda | 1,439,658 | ||||||||||||||||||||||||||
| Colombia – 0.1% | ||||||||||||||||||||||||||||
| 850 | Colombia Government International Bond | 5.000% | 6/15/45 | Baa2 | 1,037,000 | |||||||||||||||||||||||
| Cote d’Ivoire – 0.1% | ||||||||||||||||||||||||||||
| 403 | Ivory Coast Government International Bond, 144A | 0.058% | 12/31/32 | B+ | 406,066 | |||||||||||||||||||||||
| Dominican Republic – 0.3% | ||||||||||||||||||||||||||||
| 1,000 | Dominican Republic International Bond, 144A | 6.875% | 1/29/26 | BB– | 1,206,250 | |||||||||||||||||||||||
| 12,000 | Dominican Republic International Bond, 144A | 9.750% | 6/05/26 | BB– | 221,047 | |||||||||||||||||||||||
| 600 | Dominican Republic International Bond, 144A | 4.875% | 9/23/32 | BB– | 663,750 | |||||||||||||||||||||||
| 13,600 | Total Dominican Republic | 2,091,047 | ||||||||||||||||||||||||||
| Egypt – 0.7% | ||||||||||||||||||||||||||||
| 3,175 | Egypt Government International Bond, 144A | 5.577% | 2/21/23 | B+ | 3,349,625 | |||||||||||||||||||||||
| 1,225 | Egypt Government International Bond, 144A | 7.053% | 1/15/32 | B+ | 1,331,269 | |||||||||||||||||||||||
| 4,400 | Total Egypt | 4,680,894 | ||||||||||||||||||||||||||
| Ghana – 0.3% | ||||||||||||||||||||||||||||
| 2,200 | Ghana Government International Bond, 144A | 8.125% | 3/26/32 | B | 2,324,019 | |||||||||||||||||||||||
| Guatemala – 0.1% | ||||||||||||||||||||||||||||
| 425 | Guatemala Government Bond, 144A | 4.900% | 6/01/30 | Ba1 | 496,188 | |||||||||||||||||||||||
| Indonesia – 0.2% | ||||||||||||||||||||||||||||
| 250 | Indonesia Government International Bond, 144A | 4.625% | 4/15/43 | BBB | 301,073 | |||||||||||||||||||||||
| 850 | Perusahaan Penerbit SBSN Indonesia III, 144A | 4.400% | 3/01/28 | BBB | 994,933 | |||||||||||||||||||||||
| 1,100 | Total Indonesia | 1,296,006 | ||||||||||||||||||||||||||
| Israel – 0.1% | ||||||||||||||||||||||||||||
| 325 | State of Israel, Reg S | 3.800% | 5/13/60 | AA– | 388,192 | |||||||||||||||||||||||
| Kazakhstan – 0.2% | ||||||||||||||||||||||||||||
| 850 | Kazakhstan Government International Bond, 144A | 4.875% | 10/14/44 | BBB | 1,151,444 | |||||||||||||||||||||||
| Kenya – 0.2% | ||||||||||||||||||||||||||||
| 1,000 | Kenya Government International Bond, 144A | 7.000% | 5/22/27 | B+ | 1,101,250 | |||||||||||||||||||||||
| Mexico – 0.1% | ||||||||||||||||||||||||||||
| 850 | Mexico Government International Bond | 3.750% | 1/11/28 | Baa1 | 955,026 | |||||||||||||||||||||||
| Morocco – 0.1% | ||||||||||||||||||||||||||||
| 850 | Morocco Government International Bond, 144A | 5.500% | 12/11/42 | BBB– | 1,060,108 | |||||||||||||||||||||||
54
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| Oman – 0.1% | ||||||||||||||||||||||||||||
| $ | 500 | Oman Government International Bond, 144A | 6.750% | 10/28/27 | Ba3 | $ | 541,650 | |||||||||||||||||||||
| Qatar – 0.2% | ||||||||||||||||||||||||||||
| 850 | Qatar Government International Bond, 144A | 4.817% | 3/14/49 | AA– | 1,159,723 | |||||||||||||||||||||||
| Romania – 0.0% | ||||||||||||||||||||||||||||
| 274 | Romanian Government International Bond, 144A | 4.375% | 8/22/23 | BBB– | 298,660 | |||||||||||||||||||||||
| Serbia – 0.1% | ||||||||||||||||||||||||||||
| 600 | Serbia International Bond, 144A | 2.125% | 12/01/30 | BB+ | 592,980 | |||||||||||||||||||||||
| South Africa – 0.1% | ||||||||||||||||||||||||||||
| 1,000 | South Africa Government International Bond | 0.054% | 7/24/44 | Ba2 | 979,502 | |||||||||||||||||||||||
| Uruguay – 0.0% | ||||||||||||||||||||||||||||
| 250 | Uruguay Government International Bond | 4.125% | 11/20/45 | BBB | 311,250 | |||||||||||||||||||||||
| Uzbekistan – 0.2% | ||||||||||||||||||||||||||||
| 500 | Republic of Uzbekistan Bond, 144A | 5.375% | 2/20/29 | BB– | 581,020 | |||||||||||||||||||||||
| 450 | Republic of Uzbekistan Bond, 144A | 3.700% | 11/25/30 | BB– | 473,805 | |||||||||||||||||||||||
| 950 | Total Uzbekistan | 1,054,825 | ||||||||||||||||||||||||||
| $ | 32,557 | Total Sovereign Debt (cost $21,300,348) | 23,365,488 | |||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Optional Call Provisions (8) | Ratings (2) | Value | ||||||||||||||||||||||||
MUNICIPAL BONDS – 1.4% | ||||||||||||||||||||||||||||
| Massachusetts – 0.2% | ||||||||||||||||||||||||||||
| 1,300 | Massachusetts Water Resources Authority, General Revenue Bonds, Green Series 2019F, 2.553%, 8/01/32 | 8/29 at 100.00 | AA+ | 1,412,060 | ||||||||||||||||||||||||
| New York – 0.5% | ||||||||||||||||||||||||||||
| 2,540 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2020A, 2.512%, 7/01/33 | No Opt. Call | Aa3 | 2,632,482 | ||||||||||||||||||||||||
| 870 | New York Transportation Development Corporation, New York, Lease Revenue Bonds, Fuller Road Management Corporation—Nanotechnology Facilities Project, Refunding Series 2020, 4.248%, 9/01/35 | No Opt. Call | A+ | 965,543 | ||||||||||||||||||||||||
| 3,410 | Total New York | 3,598,025 | ||||||||||||||||||||||||||
| Ohio – 0.4% | ||||||||||||||||||||||||||||
Cleveland, Ohio, Airport System Revenue Bonds, Taxable Series 2019A: | ||||||||||||||||||||||||||||
| 1,000 | 2.492%, 1/01/25 | No Opt. Call | A2 | 1,036,470 | ||||||||||||||||||||||||
| 1,500 | 2.832%, 1/01/30 | No Opt. Call | A2 | 1,543,470 | ||||||||||||||||||||||||
| 2,500 | Total Ohio | 2,579,940 | ||||||||||||||||||||||||||
| Texas – 0.3% | ||||||||||||||||||||||||||||
| 1,615 | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, Taxable Refunding Subordinate Lien Series 2020B Tela Supported, 3.236%, 10/01/52 | 4/30 at 100.00 | Aa1 | 1,690,340 | ||||||||||||||||||||||||
| $ | 8,825 | Total Municipal Bonds (cost $8,825,000) | 9,280,365 | |||||||||||||||||||||||||
55
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
| Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||||||||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 0.9% |
| |||||||||||||||||||||||||||
| Banks – 0.1% | ||||||||||||||||||||||||||||
| $ | 35,700 | Bank of America Corp, (4), (9) | 4.375% | BBB | $ | 947,835 | ||||||||||||||||||||||
| Diversified Financial Services – 0.3% | ||||||||||||||||||||||||||||
| 14,600 | AgriBank FCB, (11) | 6.875% | BBB+ | 1,649,800 | ||||||||||||||||||||||||
| Insurance – 0.5% | ||||||||||||||||||||||||||||
| 49,000 | Assurant Inc, (9) | 5.250% | BB+ | 1,340,640 | ||||||||||||||||||||||||
| 70,000 | Enstar Group Ltd | 7.000% | BB+ | 1,976,800 | ||||||||||||||||||||||||
Total Insurance | 3,317,440 | |||||||||||||||||||||||||||
Total $25 Par (or similar) Retail Preferred (cost $5,327,500) |
| 5,915,075 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
| U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 0.7% | ||||||||||||||||||||||||||||
| $ | 5,000 | U.S. Treasury Bond | 1.125% | 8/15/40 | Aaa | $ | 4,725,781 | |||||||||||||||||||||
| $ | 5,000 | Total U.S. Government and Agency Obligations (cost $4,878,525) |
| 4,725,781 | ||||||||||||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||||||||||||
COMMON STOCKS – 0.2% | ||||||||||||||||||||||||||||
| Oil, Gas & Consumable Fuels – 0.2% | ||||||||||||||||||||||||||||
| 47,599 | Denbury Inc, (9) | 1,222,818 | ||||||||||||||||||||||||||
Total Common Stocks (cost $1,534,511) | 1,222,818 | |||||||||||||||||||||||||||
Total Long-Term Investments (cost $625,344,114) | 657,849,955 | |||||||||||||||||||||||||||
| Shares | Description (1) | Coupon | Value | |||||||||||||||||||||||||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.5% |
| |||||||||||||||||||||||||||
| Money Market Funds – 0.5% | ||||||||||||||||||||||||||||
| 3,344,347 | State Street Navigator Securities Lending Government Money Market Portfolio, (13) | 0.080% (14) | $ | 3,344,347 | ||||||||||||||||||||||||
Total Investments Purchased with Collateral from Securities Lending (cost $3,344,347) |
| 3,344,347 | ||||||||||||||||||||||||||
| Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||||||||||
SHORT-TERM INVESTMENTS – 8.3% | ||||||||||||||||||||||||||||
| REPURCHASE AGREEMENTS – 8.3% | ||||||||||||||||||||||||||||
| $ | 56,629 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/20, repurchase price $56,629,275, collateralized by $57,760,300, U.S. Treasury Notes, 0.125%, due 7/15/23, value $57,761,862 | 0.000% | 1/04/21 | $ | 56,629,275 | ||||||||||||||||||||||
Total Short-Term Investments (cost $56,629,275) | 56,629,275 | |||||||||||||||||||||||||||
Total Investments (cost $685,317,736) – 105.7% | 717,823,577 | |||||||||||||||||||||||||||
Other Assets Less Liabilities – (5.7)% (15) | (38,698,049) | |||||||||||||||||||||||||||
Net Assets – 100% | $ | 679,125,528 | ||||||||||||||||||||||||||
56
Investments in Derivatives
Futures Contracts
| Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount* | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | |||||||||||||||||||||
U.S. Treasury 5-Year Note | Short | (217) | 3/21 | $ | (27,312,554) | $ | (27,377,602) | $ | (65,048) | $ | (10,172) | |||||||||||||||||
U.S. Treasury Long Bond | Long | 68 | 3/21 | 11,890,081 | 11,776,750 | (113,331) | 23,375 | |||||||||||||||||||||
U.S. Treasury Ultra 10-Year Note | Short | (112) | 3/21 | (17,580,898) | (17,512,250) | 68,647 | (24,500) | |||||||||||||||||||||
U.S. Treasury Ultra Bond | Long | 51 | 3/21 | 11,047,455 | 10,891,688 | (155,767) | 38,250 | |||||||||||||||||||||
Total |
| $ | (21,955,916) | $ | (22,221,414) | $ | (265,499) | $ | 26,953 | |||||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 61,625 | |||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (34,672) | |||||||||||||||||||||||||
| * | The aggregate notional amount of long and short-positions is $22,937,536 and $(44,893,452), respectively. |
57
Nuveen Strategic Income Fund (continued)
Portfolio of Investments December 31, 2020
(Unaudited)
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (3) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. |
| (4) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $3,228,959. |
| (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) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. |
| (8) | 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. |
| (9) | Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. |
| (10) | Perpetual security. Maturity date is not applicable. |
| (11) | 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. |
| (12) | Investment, or portion of investment, represents an outstanding unfunded senior loan commitment. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more information. |
| (13) | 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 for more information. |
| (14) | The rate shown is the one-day yield as of the end of the reporting period. |
| (15) | 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. |
| (16) | Principal Amount (000) rounds to less than $1,000. |
| 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 |
| MDR | Denotes investment is subject to dollar roll transactions. |
| N/A | Not Applicable. |
| Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
| TBA | To be announced. Maturity date not known prior to settlement of this transaction. |
| 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.
58
Statement of Assets and Liabilities
December 31, 2020
(Unaudited)
Credit Income | Strategic Income | |||||||
Assets | ||||||||
Long-term investments, at value (cost $197,319,337 and $625,344,114, respectively)(1) | $ | 205,277,875 | $ | 657,849,955 | ||||
Investment purchased with collateral from securities lending, at value (cost approximates value) | 1,749,651 | 3,344,347 | ||||||
Short-term investments, at value (cost approximates value) | 6,283,579 | 56,629,275 | ||||||
Cash | 423,250 | 44,522 | ||||||
Cash collateral at brokers for investments in futures contracts(2) | — | 484,953 | ||||||
Receivable for: | ||||||||
Dividends | 10,750 | 25,094 | ||||||
Interest | 2,429,959 | 4,953,932 | ||||||
Investments sold | 4,468,654 | �� | 3,434,727 | |||||
Reclaims | 1,442 | 1,082 | ||||||
Shares sold | 383,565 | 4,147,011 | ||||||
Variation margin on futures contracts | — | 61,625 | ||||||
Other assets | 74,034 | 111,172 | ||||||
Total assets | 221,102,759 | 731,087,695 | ||||||
Liabilities | ||||||||
Payable for: | ||||||||
Collateral from securities lending program | 1,749,651 | 3,344,347 | ||||||
Dividends | 34,920 | 492,711 | ||||||
Investments purchased – regular settlement | 405,250 | 1,373,402 | ||||||
Investments purchased – when issued/delayed-delivery settlement | 6,759,382 | 44,683,750 | ||||||
Shares redeemed | 767,115 | 1,238,775 | ||||||
Unfunded senior loans | 44,922 | 44,922 | ||||||
Variation margin on futures contracts | — | 34,672 | ||||||
Accrued expenses: | ||||||||
Management fees | 50,067 | 229,662 | ||||||
Directors fees | 37,918 | 57,192 | ||||||
12b-1 distribution and service fees | 35,224 | 59,167 | ||||||
Other | 181,986 | 403,567 | ||||||
Total liabilities | 10,066,435 | 51,962,167 | ||||||
Net assets | $ | 211,036,324 | $ | 679,125,528 | ||||
| (1) | Includes securities loaned of $1,690,209 and $3,228,959 for Credit Income and Strategic Income, respectively. |
| (2) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
See accompanying notes to financial statements.
59
Statement of Assets and Liabilities (Unaudited) (continued)
| Credit Income | Strategic Income | |||||||
Class A Shares | ||||||||
Net assets | $ | 86,770,508 | $ | 128,141,393 | ||||
Shares outstanding | 11,863,915 | 11,378,218 | ||||||
Net asset value (“NAV”) per share | $ | 7.31 | $ | 11.26 | ||||
Offering price per share (NAV per share plus maximum sales charge of 4.75% and 4.25%, respectively, of offering price) | $ | 7.67 | $ | 11.76 | ||||
Class C Shares | ||||||||
Net assets | $ | 19,627,552 | $ | 36,928,789 | ||||
Shares outstanding | 2,686,953 | 3,295,950 | ||||||
NAV and offering price per share | $ | 7.30 | $ | 11.20 | ||||
Class R3 Shares | ||||||||
Net assets | $ | 226,784 | $ | 2,543,705 | ||||
Shares outstanding | 30,333 | 225,115 | ||||||
NAV and offering price per share | $ | 7.48 | $ | 11.30 | ||||
Class R6 Shares | ||||||||
Net assets | $ | — | $ | 76,933,581 | ||||
Shares outstanding | — | 6,802,496 | ||||||
NAV and offering price per share | $ | — | $ | 11.31 | ||||
Class I Shares | ||||||||
Net assets | $ | 104,411,480 | $ | 434,578,060 | ||||
Shares outstanding | 14,227,599 | 38,574,618 | ||||||
NAV and offering price per share | $ | 7.34 | $ | 11.27 | ||||
Fund level net assets consist of: | ||||||||
Capital paid-in | $ | 339,447,241 | $ | 693,511,586 | ||||
Total distributable earnings | (128,410,917 | ) | (14,386,058 | ) | ||||
Fund level net assets | $ | 211,036,324 | $ | 679,125,528 | ||||
Authorized shares – per class | 2 billion | 2 billion | ||||||
Par value per share | $ | 0.0001 | $ | 0.0001 | ||||
See accompanying notes to financial statements.
60
Six Months Ended December 31, 2020
(Unaudited)
| Credit Income | Strategic Income | |||||||
Investment Income | ||||||||
Dividend | $ | 407,179 | $ | 121,828 | ||||
Interest | 5,143,642 | 12,540,929 | ||||||
Securities lending income | 3,503 | 2,554 | ||||||
Total investment income | 5,554,324 | 12,665,311 | ||||||
Expenses | ||||||||
Management fees | 580,040 | 1,721,737 | ||||||
12b-1 service fees – Class A Shares | 104,532 | 146,694 | ||||||
12b-1 distribution and service fees – Class C Shares | 106,376 | 181,420 | ||||||
12b-1 distribution and service fees – Class R3 Shares | 620 | 7,519 | ||||||
Shareholder servicing agent fees | 40,408 | 226,049 | ||||||
Custodian fees | 41,937 | 100,751 | ||||||
Trustees fees | 2,760 | 9,427 | ||||||
Professional fees | 134,021 | 64,590 | ||||||
Shareholder reporting expenses | 61,472 | 53,941 | ||||||
Federal and state registration fees | 45,601 | 59,442 | ||||||
Other | 13,420 | 10,900 | ||||||
Total expenses before fee waiver/expense reimbursement | 1,131,187 | 2,582,470 | ||||||
Fee waiver/expense reimbursement | (189,162 | ) | (387,748 | ) | ||||
Net expenses | 942,025 | 2,194,722 | ||||||
Net investment income (loss) | 4,612,299 | 10,470,589 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | 2,412,502 | 1,219,643 | ||||||
Futures contracts | — | (81,277 | ) | |||||
Swaps | — | (20,556 | ) | |||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | 14,038,354 | 32,426,392 | ||||||
Futures contracts | — | (155,691 | ) | |||||
Net realized and unrealized gain (loss) | 16,450,856 | 33,388,511 | ||||||
Net increase (decrease) in net assets from operations | $ | 21,063,155 | $ | 43,859,100 | ||||
See accompanying notes to financial statements.
61
Statement of Changes in Net Assets
(Unaudited)
Credit Income | Strategic Income | |||||||||||||||||||
| Six Months Ended 12/31/20 | Year Ended 6/30/20 | Six Months Ended 12/31/20 | Year Ended 6/30/20 | |||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income (loss) | $ | 4,612,299 | $ | 12,182,610 | $ | 10,470,589 | $ | 22,645,297 | ||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments and foreign currency | 2,412,502 | (11,937,543 | ) | 1,219,643 | 7,520,443 | |||||||||||||||
Forward foreign currency contracts | — | — | — | (25,415 | ) | |||||||||||||||
Futures contracts | — | — | (81,277 | ) | 6,619,928 | |||||||||||||||
Swaps | — | 121,582 | (20,556 | ) | 394,660 | |||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments and foreign currency | 14,038,354 | (7,715,002 | ) | 32,426,392 | (14,138,360 | ) | ||||||||||||||
Futures contracts | — | — | (155,691 | ) | (893,413 | ) | ||||||||||||||
Swaps | — | (25,642 | ) | — | 242,818 | |||||||||||||||
Net increase (decrease) in net assets from operations | 21,063,155 | (7,373,995 | ) | 43,859,100 | 22,365,958 | |||||||||||||||
Distributions to Shareholders | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||
Class A Shares | (1,906,256 | ) | (5,570,100 | ) | (1,901,272 | ) | (4,779,380 | ) | ||||||||||||
Class C Shares | (411,747 | ) | (1,254,480 | ) | (456,880 | ) | (1,125,729 | ) | ||||||||||||
Class R3 Shares | (5,342 | ) | (13,351 | ) | (45,301 | ) | (97,693 | ) | ||||||||||||
Class R6 Shares | — | — | (1,175,610 | ) | (2,494,336 | ) | ||||||||||||||
Class I Shares | (2,133,594 | ) | (4,571,241 | ) | (7,244,787 | ) | (15,555,242 | ) | ||||||||||||
Return of capital: | ||||||||||||||||||||
Class A Shares | — | (439,476 | ) | — | — | |||||||||||||||
Class C Shares | — | (116,299 | ) | — | — | |||||||||||||||
Class R3 Shares | — | (1,106 | ) | — | — | |||||||||||||||
Class R6 Shares | — | — | — | — | ||||||||||||||||
Class I Shares | — | (345,576 | ) | — | — | |||||||||||||||
Decrease in net assets from distributions to shareholders | (4,456,939 | ) | (12,311,629 | ) | (10,823,850 | ) | (24,052,380 | ) | ||||||||||||
Fund Share Transactions | ||||||||||||||||||||
Proceeds from sale of shares | 108,743,652 | 200,974,291 | 146,434,160 | 277,348,570 | ||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 4,160,803 | 11,152,874 | 7,648,914 | 16,172,786 | ||||||||||||||||
| 112,904,455 | 212,127,165 | 154,083,074 | 293,521,356 | |||||||||||||||||
Cost of shares redeemed | (104,601,092 | ) | (295,499,711 | ) | (104,798,181 | ) | (277,115,029 | ) | ||||||||||||
Net increase (decrease) in net assets from Fund share transactions | 8,303,363 | (83,372,546 | ) | 49,284,893 | 16,406,327 | |||||||||||||||
Net increase (decrease) in net assets | 24,909,579 | (103,058,170 | ) | 82,320,143 | 14,719,905 | |||||||||||||||
Net assets at the beginning of period | 186,126,745 | 289,184,915 | 596,805,385 | 582,085,480 | ||||||||||||||||
Net assets at the end of period | $ | 211,036,324 | $ | 186,126,745 | $ | 679,125,528 | $ | 596,805,385 | ||||||||||||
See accompanying notes to financial statements.
62
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63
(Unaudited)
Credit Income
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 | Return of Capital | Total | Ending NAV | |||||||||||||||||||||||||||||||
Class A (8/01) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | $ | 6.69 | $ | 0.17 | $ | 0.61 | $ | 0.78 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | 7.31 | ||||||||||||||||||||
2020 | 7.44 | 0.38 | (0.75 | ) | (0.37 | ) | (0.35 | ) | — | (0.03 | ) | (0.38 | ) | 6.69 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class C (8/01) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 6.69 | 0.14 | 0.61 | 0.75 | (0.14 | ) | — | — | (0.14 | ) | 7.30 | |||||||||||||||||||||||||||||
2020 | 7.43 | 0.33 | (0.74 | ) | (0.41 | ) | (0.30 | ) | — | (0.03 | ) | (0.33 | ) | 6.69 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 6.84 | 0.16 | 0.64 | 0.80 | (0.16 | ) | — | — | (0.16 | ) | 7.48 | |||||||||||||||||||||||||||||
2020 | 7.60 | 0.37 | (0.76 | ) | (0.39 | ) | (0.34 | ) | — | (0.03 | ) | (0.37 | ) | 6.84 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Class I (8/01) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 6.71 | 0.18 | 0.62 | 0.80 | (0.17 | ) | — | — | (0.17 | ) | 7.34 | |||||||||||||||||||||||||||||
2020 | 7.47 | 0.40 | (0.76 | ) | (0.36 | ) | (0.37 | ) | — | (0.03 | ) | (0.40 | ) | 6.71 | ||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
64
| Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||||||
| 11.80 | % | $ | 86,771 | 1.19 | %* | 4.52 | %* | 1.00 | %* | 4.72 | %* | 104 | % | |||||||||||||||||||||
| (5.15 | ) | 82,545 | 1.12 | 5.19 | 1.00 | 5.31 | 80 | |||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| 11.26 | 19,628 | 1.94 | * | 3.79 | * | 1.75 | * | 3.98 | * | 104 | ||||||||||||||||||||||||
| (5.75 | ) | 22,612 | 1.87 | 4.46 | 1.75 | 4.58 | 80 | |||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| 11.74 | 227 | 1.44 | * | 4.28 | * | 1.25 | * | 4.47 | * | 104 | ||||||||||||||||||||||||
| (5.33 | ) | 242 | 1.37 | 4.97 | 1.25 | 5.09 | 80 | |||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| 12.06 | 104,411 | 0.94 | * | 4.73 | * | 0.75 | * | 4.92 | * | 104 | ||||||||||||||||||||||||
| (5.03 | ) | 80,728 | 0.86 | 5.36 | 0.75 | 5.47 | 80 | |||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. For the period October 31, 2014 through June 29, 2016, the Adviser did not reimburse the Fund for any fees and expenses. |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | For the six months ended December 31, 2020. |
| * | Annualized. |
See accompanying notes to financial statements.
65
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) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | $ | 10.69 | $ | 0.17 | $ | 0.58 | $ | 0.75 | $ | (0.18 | ) | $ | — | $ | — | $ | (0.18 | ) | $ | 11.26 | ||||||||||||||||||||
2020 | 10.60 | 0.36 | 0.12 | 0.48 | (0.39 | ) | — | — | (0.39 | ) | 10.69 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class C (2/00) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 10.64 | 0.13 | 0.57 | 0.70 | (0.14 | ) | — | — | (0.14 | ) | 11.20 | |||||||||||||||||||||||||||||
2020 | 10.55 | 0.28 | 0.12 | 0.40 | (0.31 | ) | — | — | (0.31 | ) | 10.64 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R3 (9/01) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 10.73 | 0.16 | 0.58 | 0.74 | (0.17 | ) | — | — | (0.17 | ) | 11.30 | |||||||||||||||||||||||||||||
2020 | 10.64 | 0.33 | 0.13 | 0.46 | (0.37 | ) | — | — | (0.37 | ) | 10.73 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class R6 (1/15) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 10.73 | 0.19 | 0.59 | 0.78 | (0.20 | ) | — | — | (0.20 | ) | 11.31 | |||||||||||||||||||||||||||||
2020 | 10.64 | 0.40 | 0.12 | 0.52 | (0.43 | ) | — | — | (0.43 | ) | 10.73 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Class I (2/00) | ||||||||||||||||||||||||||||||||||||||||
2021(e) | 10.69 | 0.19 | 0.58 | 0.77 | (0.19 | ) | — | — | (0.19 | ) | 11.27 | |||||||||||||||||||||||||||||
2020 | 10.60 | 0.39 | 0.12 | 0.51 | (0.42 | ) | — | — | (0.42 | ) | 10.69 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
66
| 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) | ||||||||||||||||||||||||||||
| 7.07 | % | $ | 128,141 | 0.96 | %* | 2.99 | %* | 0.84 | %* | 3.11 | %* | 47 | % | |||||||||||||||||||||
| 4.63 | 101,886 | 0.97 | 3.28 | 0.84 | 3.42 | 62 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| 6.60 | 36,929 | 1.71 | * | 2.25 | * | 1.59 | * | 2.37 | * | 47 | ||||||||||||||||||||||||
| 3.84 | 37,285 | 1.72 | 2.58 | 1.59 | 2.71 | 62 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| 6.92 | 2,544 | 1.21 | * | 2.75 | * | 1.09 | * | 2.87 | * | 47 | ||||||||||||||||||||||||
| 4.38 | 3,033 | 1.22 | 3.09 | 1.09 | 3.22 | 62 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| 7.31 | 76,934 | 0.63 | * | 3.31 | * | 0.51 | * | 3.43 | * | 47 | ||||||||||||||||||||||||
| 4.96 | 59,099 | 0.63 | 3.64 | 0.50 | 3.77 | 62 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| 7.28 | 434,578 | 0.71 | * | 3.24 | * | 0.59 | * | 3.36 | * | 47 | ||||||||||||||||||||||||
| 4.86 | 395,502 | 0.72 | 3.57 | 0.59 | 3.71 | 62 | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, Management Fees for more information. |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | For the six months ended December 31, 2020. |
| * | Annualized. |
See accompanying notes to financial statements.
67
(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 Credit Income Fund (“Credit Income”) 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, 2020, and the period covered by these Notes to Financial Statements is the six months ended December 31, 2020 (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, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but 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.
Other Matters
The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.
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.
68
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.
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.
Investments and Investment Income
Securities transactions are accounted for as of the trade date for financial reporting purposes. Trade date for senior and subordinated loans purchased in the “primary market” is considered the date on which the loan allocations are determined. Trade date for senior and subordinated loans purchased in the “secondary market” is the date on which the transaction is entered into. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income, which is recorded on an accrual basis and includes accretion of discounts and the amortization of premium for financial reporting purposes. Interest income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments.
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 value of settled shares of each class. Expenses directly attributable to a class of shares are recorded to the specific class. 12b-1 distribution and service fees are allocated on a class-specific basis.
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 settled shares.
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 master repurchase agreements, International Swaps and Derivative Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives 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 4 – Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
Reference Rate Reform
In March 2020, FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new
69
Notes to Financial Statements (Unaudited) (continued)
and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management has not yet elected to apply the amendments, but is currently assessing the impact of the ASU’s adoption to the Fund’s financial statements and various filings.
Securities and Exchange Commission (“SEC”) Adopts New Rules to Modernize Fund Valuation Framework
In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotation are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 will become effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.
3. Investment Valuation and Fair Value Measurements
The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. 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. U.S. GAAP establishes the three-tier hierarchy which 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 management’s 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). |
A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:
Equity securities and exchange-traded funds listed or traded on a national market or exchange are valued based on their sale price at the official close of business of such market or exchange on the valuation date. Foreign equity securities are valued at the last sale price or official closing price reported on the exchange where traded and converted to U.S. dollars at the prevailing rates of exchange on the date of valuation. To the extent these securities are actively traded and that valuation adjustments are not applied, they are generally classified as Level 1. If there is no official close of business, then the latest available sale price is utilized. If no sales are reported, then the mean of the latest available bid and ask prices is utilized and are generally classified as Level 2.
Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.
Prices of fixed-income securities are generally 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. 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.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Any portfolio security or derivative for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued at fair value, as determined in good faith using procedures approved by the Board. 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. To the extent the inputs are observable and timely, the values would be classified as Level 2 of the fair value hierarchy; otherwise they would be classified as Level 3.
70
The following table summarizes the market value of the Funds’ investments as of the end of the reporting period, based on the inputs used to value them:
| Credit Income | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 125,059,891 | $ | 5 | ** | $ | 125,059,896 | |||||||
Asset-Backed and Mortgage-Backed Securities | — | 22,393,585 | — | 22,393,585 | ||||||||||||
Variable Rate Senior Loan Interests | — | 18,704,129 | — | 18,704,129 | ||||||||||||
Contingent Capital Securities | — | 11,021,312 | — | 11,021,312 | ||||||||||||
Exchange-Traded Funds | 10,567,042 | — | — | 10,567,042 | ||||||||||||
Sovereign Debt | — | 9,709,990 | — | 9,709,990 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 5,622,304 | — | *** | 5,622,304 | |||||||||||
$25 Par (or similar) Retail Preferred | 2,199,470 | — | — | 2,199,470 | ||||||||||||
Common Stocks | — | — | 147 | ** | 147 | |||||||||||
| Investments Purchased with Collateral from Securities Lending | 1,749,651 | — | — | 1,749,651 | ||||||||||||
| Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 6,283,579 | — | 6,283,579 | ||||||||||||
| Total | $ | 14,516,163 | $ | 198,794,790 | $ | 152 | $ | 213,311,105 | ||||||||
| Strategic Income | ||||||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 272,615,252 | $ | — | $ | 272,615,252 | ||||||||
Asset-Backed and Mortgage-Backed Securities | — | 211,527,789 | — | 211,527,789 | ||||||||||||
Variable Rate Senior Loan Interests | — | 55,548,596 | — | 55,548,596 | ||||||||||||
$1,000 Par (or similar) Institutional Preferred | — | 49,642,550 | — | 49,642,550 | ||||||||||||
Contingent Capital Securities | — | 24,006,241 | — | 24,006,241 | ||||||||||||
Sovereign Debt | — | 23,365,488 | — | 23,365,488 | ||||||||||||
Municipal Bonds | — | 9,280,365 | — | 9,280,365 | ||||||||||||
$25 Par (or similar) Retail Preferred | 4,265,275 | 1,649,800 | ** | — | 5,915,075 | |||||||||||
U.S. Government and Agency Obligations | — | 4,725,781 | — | 4,725,781 | ||||||||||||
Common Stocks | 1,222,818 | — | — | 1,222,818 | ||||||||||||
| Investments Purchased with Collateral from Securities Lending | 3,344,347 | — | — | 3,344,347 | ||||||||||||
| Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | — | 56,629,275 | — | 56,629,275 | ||||||||||||
| Investments in Derivatives: | ||||||||||||||||
Futures Contracts**** | (265,499 | ) | — | — | (265,499 | ) | ||||||||||
| Total | $ | 8,566,941 | $ | 708,991,137 | $ | — | $ | 717,558,078 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry, state and country classifications, where applicable. |
| ** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2 and/or Level 3, where applicable. |
| *** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 3. Value equals zero as of the end of the reporting period. |
| **** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Unfunded Commitments
Pursuant to the terms of certain of the variable rate senior loan agreements, the Funds may have unfunded senior loan commitments. Each Fund will maintain with its custodian, cash, liquid securities and/or liquid senior loans having an aggregate value at least equal to the amount of unfunded senior loan commitments. As of the end of the reporting period, the Funds’outstanding unfunded senior loan commitments were as follows:
| Credit Income | Strategic Income | |||||
| Outstanding unfunded senior loan commitments | $44,922 | $ | 44,922 | |||
Participation Commitments
With respect to the senior loans held in each Fund’s portfolio, the Funds may: 1) invest in assignments; 2) act as a participant in primary lending syndicates; or 3) invest in participations. If a Fund purchases a participation of a senior loan interest, the Fund would typically enter into a contractual agreement with the lender or other third party selling the participation, rather than directly with the borrower. As such, the Fund not only assumes the credit risk of the borrower, but also that of the selling participant or other persons interpositioned between the Fund and the borrower. As of the end of the reporting period, the Funds had no such outstanding participation commitments.
71
Notes to Financial Statements (Unaudited) (continued)
Dollar Roll Transactions
Each Fund may enter into mortgage dollar rolls in which a Fund sells mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously contracts to repurchase similar securities on a specified future date. During the roll period, a Fund forgoes principal and interest paid on the securities. Each Fund is compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sales proceeds and the repurchase price is recorded as a realized gain or loss.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
| Fund | Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | ||||||||||
| Credit Income | Fixed Income Clearing Corporation | $ | 6,283,579 | $ | (6,283,579 | ) | $ | — | ||||||
| Strategic Income | Fixed Income Clearing Corporation | 56,629,275 | (56,629,275 | ) | — | |||||||||
| * | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Portfolio of Investments for details on the repurchase agreements. |
Securities Lending
Each Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions in order to generate additional income. When loaning securities, the Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The resulting loans are continuous, can be recalled at any time, and have no set maturity. Effective July 15, 2020 each Fund terminated its securities lending agreement with U.S. Bank National Association (“U.S. Bank”), which served as the securities lending agent from the beginning of the current fiscal period through such termination date. Subsequently, each Fund entered into a securities lending agency agreement that became effective on August 14, 2020 with its custodian, State Street Bank and Trust Company (“State Street”), which serves as the Funds’ current securities lending agent (U.S. Bank and State Street are collectively and individually, the “Agent”).
When a Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to an amount not less than 100% of the market value of the loaned securities. The actual percentage of the cash collateral will vary depending upon the asset type of the loaned securities. Collateral for the loaned securities is invested in a government money market vehicle maintained by the Agent, which is subject to the requirements of Rule 2a-7 under the 1940 Act. The value of the loaned securities and the liability to return the cash collateral received are recognized on the Statement of Assets and Liabilities. If the market value of the loaned securities increases, the borrower must furnish additional collateral to the Fund, which is also recognized on the Statement of Assets and Liabilities. Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. During the term of the loan, the Fund bears the market risk with respect to the investment of collateral and the risk that the Agent may default on its contractual obligations to the Fund. The Agent bears the risk that the borrower may default on its obligation to return the loaned securities as the Agent is contractually obligated to indemnify the Fund if at the time of a default by a borrower some or all of the loan securities have not been returned.
Securities lending income recognized by a Fund consists of earnings on invested collateral and lending fees, net of any rebates to the borrower and compensation to the Agent. Such income is recognized on the Statements of Operations.
As of the end of the reporting period, the total value of the loaned securities and the total value of collateral received were as follows:
| Fund | Asset Class out on Loan | Long-Term Investments, at Value | Total Collateral Received | |||||||
| Credit Income | $25 Par (or similar) Retail Preferred | $ | 136,941 | $ | 139,575 | |||||
| Corporate Bonds | 1,505,942 | 1,560,076 | ||||||||
| Sovereign Debt | 47,326 | 50,000 | ||||||||
| Total | $ | 1,690,209 | $ | 1,749,651 | ||||||
| Strategic Income | $25 Par (or similar) Retail Preferred | $ | 139,201 | $ | 141,561 | |||||
| $1,000 Par (or similar) Institutional Preferred | 729,210 | 759,315 | ||||||||
| Corporate Bonds | 2,360,548 | 2,443,471 | ||||||||
| Total | $ | 3,228,959 | $ | 3,344,347 | ||||||
72
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:
| Credit Income | Strategic Income | |||||||
| Purchases: | ||||||||
Investment securities | $ | 193,613,556 | $ | 314,139,429 | ||||
U.S. Government and agency obligations | 2,808,000 | 1,745,460 | ||||||
| Sales and maturities: | ||||||||
Investment securities | 194,660,171 | 294,300,881 | ||||||
The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities 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. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.
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 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 futures as part of their overall portfolio construction strategy to manage portfolio duration and yield curve exposure.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
| Strategic Income | ||||
| Average notional amount of futures contracts outstanding* | $ | 71,978,595 | ||
| * | 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. |
73
Notes to Financial Statements (Unaudited) (continued)
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* | $ | (269,098 | ) | Payable for variation margin on futures contracts* | $ | 3,600 | ||||||
| * | Value represents the cumulative 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 | $ | (81,277 | ) | $ | (155,691 | ) | ||||
Credit Default Swap Contracts
A Fund may enter into a credit default swap contract to seek to maintain a total return on a particular investment or portion of its portfolio, or to take an active long or short position with respect to the likelihood of a particular issuer’s default. Credit default swap contracts involve one party making a stream of payments to another party in exchange for the right to receive a specified return if/when there is a credit event by a third party. Generally, a credit event means bankruptcy, failure to pay, or restructuring. The specific credit events applicable for each credit default swap are stated in the terms of the particular swap agreement. When a Fund has bought (sold) protection in a credit default swap upon occurrence of a specific credit event with respect to the underlying referenced entity, the Fund will either (i) deliver (receive) that security, or an equivalent amount of cash, from the counterparty in exchange for receipt (payment) of the notional amount to the counterparty, or (ii) receive (pay) a net settlement amount of the credit default swap contract less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The difference between the value of the security received (delivered) and the notional amount delivered (received) is recorded as a realized gain or loss. Payments paid (received) at the beginning of the measurement period are recognized as a component of “Credit default swaps premiums paid and/or received” on the Statement of Assets and Liabilities, when applicable.
Credit default swap contracts are valued daily. Changes in the value of a credit default swap during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” and realized gains and losses are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations.
For over-the-counter (“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, Strategic Income used credit default swaps hedge a portion of the fund’s high yield credit risk exposure.
74
The average notional amount of credit default swap contacts outstanding during the current fiscal period was as follows:
Strategic Income | ||||
| Average notional amount of credit default swap contracts outstanding* | $ | — | ** | |
| * | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
| ** | The Fund invested in credit default swap contracts during the fiscal period. However, the Fund did not hold any such positions at the beginning of the fiscal period or at the end of each fiscal quarter within the current fiscal period and therefore are not included as part of this calculation. |
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 | ||||||||
| Strategic Income | Credit | Swaps | $ | (20,556 | ) | $ | — | |||||
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
5. Fund Shares
Transactions in Fund shares during the current and prior fiscal period were as follows:
| Six Months Ended 12/31/20 | Year Ended 6/30/20 | |||||||||||||||
| Credit Income | Shares | Amount | Shares | Amount | ||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 3,023,627 | $ | 21,217,579 | 7,396,878 | $ | 52,078,686 | ||||||||||
Class A – automatic conversion of Class C Shares | 83 | 588 | 92,554 | 686,361 | ||||||||||||
Class C | 58,174 | 402,807 | 497,953 | 3,579,508 | ||||||||||||
Class R3 | 1,536 | 11,107 | 19,134 | 146,008 | ||||||||||||
Class I | 12,357,321 | 87,111,571 | 20,387,966 | 144,483,728 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 252,570 | 1,782,565 | 795,086 | 5,715,682 | ||||||||||||
Class C | 57,491 | 405,128 | 180,158 | 1,293,044 | ||||||||||||
Class R3 | 707 | 5,096 | 1,891 | 13,827 | ||||||||||||
Class I | 277,317 | 1,968,014 | 571,525 | 4,130,321 | ||||||||||||
| 16,028,826 | 112,904,455 | 29,943,145 | 212,127,165 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (3,745,626 | ) | (26,141,603 | ) | (16,335,525 | ) | (117,355,977 | ) | ||||||||
Class C | (810,583 | ) | (5,689,083 | ) | (2,000,325 | ) | (14,206,944 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (83 | ) | (588 | ) | (92,439 | ) | (686,361 | ) | ||||||||
Class R3 | (7,218 | ) | (52,609 | ) | (24,891 | ) | (187,766 | ) | ||||||||
Class I | (10,435,725 | ) | (72,717,209 | ) | (22,534,634 | ) | (163,062,663 | ) | ||||||||
| (14,999,235 | ) | (104,601,092 | ) | (40,987,814 | ) | (295,499,711 | ) | |||||||||
| Net increase (decrease) | 1,029,591 | $ | 8,303,363 | (11,044,669 | ) | $ | (83,372,546 | ) | ||||||||
75
Notes to Financial Statements (Unaudited) (continued)
| Six Months Ended 12/31/20 | Year Ended 6/30/20 | |||||||||||||||
| Strategic Income | Shares | Amount | Shares | Amount | ||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 2,592,165 | $ | 28,535,114 | 10,702,738 | $ | 114,985,580 | ||||||||||
Class A – automatic conversion of Class C Shares | 10 | 108 | 3,361 | 35,987 | ||||||||||||
Class C | 477,238 | 5,229,570 | 706,305 | 7,434,086 | ||||||||||||
Class R3 | 30,347 | 335,221 | 111,810 | 1,217,507 | ||||||||||||
Class R6 | 2,332,373 | 25,831,783 | 3,339,512 | 35,915,057 | ||||||||||||
Class I | 7,849,451 | 86,502,364 | 11,085,334 | 117,760,353 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 146,170 | 1,613,005 | 404,976 | 4,323,082 | ||||||||||||
Class C | 39,193 | 430,136 | 91,912 | 973,879 | ||||||||||||
Class R3 | 3,219 | 35,614 | 6,166 | 65,651 | ||||||||||||
Class R6 | 104,115 | 1,154,490 | 223,522 | 2,395,791 | ||||||||||||
Class I | 399,971 | 4,415,669 | 790,490 | 8,414,383 | ||||||||||||
| 13,974,252 | 154,083,074 | 27,466,126 | 293,521,356 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (890,971 | ) | (9,825,089 | ) | (9,792,748 | ) | (99,793,855 | ) | ||||||||
Class C | (725,948 | ) | (7,921,402 | ) | (1,273,193 | ) | (13,403,748 | ) | ||||||||
Class C – automatic conversion of Class A Shares | (10 | ) | (108 | ) | (3,377 | ) | (35,987 | ) | ||||||||
Class R3 | (91,218 | ) | (1,012,872 | ) | (97,573 | ) | (1,045,514 | ) | ||||||||
Class R6 | (1,139,438 | ) | (12,576,976 | ) | (2,767,518 | ) | (29,775,291 | ) | ||||||||
Class I | (6,664,884 | ) | (73,461,734 | ) | (12,618,276 | ) | (133,060,634 | ) | ||||||||
| (9,512,469 | ) | (104,798,181 | ) | (26,552,685 | ) | (277,115,029 | ) | |||||||||
| Net increase (decrease) | 4,461,783 | $ | 49,284,893 | 913,441 | $ | 16,406,327 | ||||||||||
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, 2020.
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.
| Credit Income | Strategic Income | |||||||
| Tax cost of investments | $ | 205,448,892 | $ | 680,331,597 | ||||
| Gross unrealized: | ||||||||
Appreciation | $ | 11,012,006 | $ | 36,616,167 | ||||
Depreciation | (3,149,793 | ) | (3,389,686 | ) | ||||
| Net unrealized appreciation (depreciation) of investments | $ | 7,862,213 | $ | 33,226,481 | ||||
Permanent differences, primarily due to federal taxes paid, foreign currency transactions, complex securities character adjustments, and treatment of notional principal contracts, resulted in reclassifications among the Funds’ components of net assets as of June 30, 2020, the Funds’ last tax year end.
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The tax components of undistributed net ordinary income and net long-term capital gains as of June 30, 2020, the Funds’ last tax year end, were as follows:
| Credit Income | Strategic Income | |||||||
| Undistributed net ordinary income1 | $ | — | $ | 653,757 | ||||
| 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, 2020 through June 30, 2020 and paid on July 1, 2020. 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, 2020 was designated for purposes of the dividends paid deduction as follows:
| Credit Income | Strategic Income | |||||||
| Distributions from net ordinary income2 | $ | 11,409,172 | $ | 24,052,380 | ||||
| Distributions from net long-term capital gains | — | — | ||||||
| Return of Capital | 902,457 | — | ||||||
| 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, 2020, 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.
| Credit Income | Strategic Income | |||||||
| Not subject to expiration: | ||||||||
Short-term | $ | 49,820,656 | $ | 19,976,226 | ||||
Long-term | 88,207,962 | 27,027,075 | ||||||
| Total | $ | 138,028,618 | $ | 47,003,301 | ||||
During the Funds’ last tax year ended June 30, 2020, Strategic Income utilized $13,143,178 capital loss carryforwards.
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
| Average Daily Net Assets | Credit Income | 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 | ||||||
77
Notes to Financial Statements (Unaudited) (continued)
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, but do include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of December 31, 2020, the complex-level fee for each Fund was as follows: |
| Fund | Complex-Level Fee | |||
| Credit Income | 0.2000 | % | ||
| Strategic Income | 0.1950 | |||
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 | ||||
Credit Income | 0.75 | % | July 31, 2022 | |||
Strategic Income | 0.59 | July 31, 2022 | ||||
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.
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:
| Credit Income | Strategic Income | |||||||
| Sales charges collected | $ | 11,330 | $ | 310,502 | ||||
| Paid to financial intermediaries | 9,870 | 276,798 | ||||||
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
78
During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Credit Income | Strategic Income | |||||||
| Commission advances | $ | 1,802 | $ | 70,340 | ||||
To compensate for commissions advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
| Credit Income | Strategic Income | |||||||
| 12b-1 fees retained | $ | 9,154 | $ | 18,152 | ||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the current fiscal period, as follows:
| Credit Income | Strategic Income | |||||||
| CDSC retained | $ | 631 | $ | 4,651 | ||||
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, $2.405 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 2021 unless extended or renewed.
The credit facility has the following terms: a 0.10% upfront fee, 0.15% per annum on unused commitment amounts and a drawn interest rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Interest expense” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized this facility.
9. Subsequent Events
Class C Shares
Effective March 1, 2021, Class C Shares will automatically convert to Class A Shares eight years after purchase.
79
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 State Street Bank & Trust Company One Lincoln Street Boston, MA 02111 | 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. | ||||||||||||||
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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 of 25-30 years with a balloon payment due usually after 10 years, and iii) restrictions on prepayments.
Contingent Capital Securities (CoCos): CoCos are debt or capital securities of primarily non-U.S. issuers with loss absorption contingency mechanisms built into the terms of the security, for example a mandatory conversion into common stock of the issuer, or a principal write-down, which if triggered would likely cause the CoCo investment to lose value. Loss absorption mechanisms would become effective upon the occurrence of a specified contingency event, or at the discretion of a regulatory body. Specified contingency events, as identified in the CoCo’s governing documents, 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
81
Glossary of Terms Used in this Report (continued)
the likelihood (or the market’s perception of the likelihood) that an automatic write-down or conversion event on those issuers’ CoCos will occur. Additionally, the trading behavior of a given issuer’s CoCo may be strongly impacted by the trading behavior of other issuers’ CoCos, such that negative information from an unrelated CoCo security may cause a decline in value of one or more CoCos held by the Fund. Accordingly, the trading behavior of CoCos may not follow the trading behavior of other types of debt and preferred securities. Despite these concerns, the prospective reward vs. risk characteristics of at least certain CoCos may be very attractive relative to other fixed-income alternatives.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Lipper 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 and non-agency RMBS, depending on the issuer.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
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.
82
Notes
83
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals 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 professional, 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-1220D 1509799-INV-B-02/22 |
| ITEM 2. | CODE OF ETHICS. |
Not applicable to this filing.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable to this filing.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable to this filing.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to this registrant.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | See Portfolio of Investments in Item 1. |
| (b) | Not applicable. |
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to this registrant.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to this registrant.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to this registrant.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
| ITEM 11. | CONTROLS AND PROCEDURES. |
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the 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.
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/ Mark J. Czarniecki | |||
| Mark J. Czarniecki | ||||
| Vice President and Secretary | ||||
Date: March 5, 2021
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/ Christopher E. Stickrod | |
| Christopher E. Stickrod | ||
| Chief Administrative Officer | ||
| (principal executive officer) |
Date: March 5, 2021
| By (Signature and Title) | /s/ E. Scott Wickerham | |
E. Scott Wickerham Vice President and Controller (principal financial officer) |
Date: March 5, 2021