Nuveen Investments 8-K Nuveen Investments Reports Record 1st Quarter Earnings And Assets Under Management of $166 Billion

FOR IMMEDIATE RELEASE	CONTACT: Chris Allen
ATTN: Business/Financial Editors	(312)917-8331
	christopher.allen@nuveen.com
	Natalie Brown
	(312)917-8077
	natalie.brown@nuveen.com

Nuveen Investments Reports Record 1st Quarter Earnings
And Assets Under Management of $166 Billion

Chicago, IL, April 30, 2007— Nuveen Investments, Inc. (NYSE: JNC), a leading provider of diversified investment services, today reported record first quarter earnings. First quarter net income of $52.3 million increased 17% over the first quarter of 2006 and earnings per share (diluted) of $0.63 increased 17% from the same period last year. The Company’s first-quarter operating revenues of $196.8 million increased 23% over the prior year with advisory fee income up 21% year over year.

First quarter gross sales were $8.1 billion. Gross sales in the period were comprised of $3.4 billion in institutional separate accounts, $2.7 billion in high-net-worth managed accounts, $1.7 billion in mutual funds and $0.3 billion in closed-end funds. Net flows were $3.0 billion.

Total assets under management increased to $166.1 billion at March 31, 2007, from $145.0 billion a year ago and from $161.6 billion at the beginning of the year. The 15% increase in assets under management over the prior year was driven by $12.5 billion of net flows and $8.6 billion of market appreciation. From the beginning of the year, assets under management increased by $4.5 billion due to $3.0 billion of net flows and $1.5 billion of market appreciation.

Commenting on the Company’s results, Tim Schwertfeger, Chairman & CEO of Nuveen Investments, said, “We are very pleased to report another quarter of high-quality growth in revenue, earnings, and assets under management. We continue to make solid progress in elevating our institutional presence and building out our mutual fund business. Our institutional business generated sales of $3.4 billion and net flows of $2.2 billion in the quarter, both of which were more than double last year’s first quarter level. This growth was partially driven by $900 million in collateralized debt or loan obligations through our Symphony investment team. In mutual funds, our momentum continued with net flows exceeding $1.0 billion for the second quarter in a row, primarily driven by demand for our high yield fund and our value equity funds. We anticipate some moderation in mutual fund growth in the second half of the year as we continue to rationalize our capacity in certain of our value equity strategies.”

“As we announced earlier this month, we plan to acquire HydePark Investment Strategies, a highly regarded specialist in enhanced equity investment management. The acquisition includes Richards & Tierney, a firm that provides specialized risk control and portfolio advisory services to institutional investors. With $350 million in assets under management, HydePark currently serves a diverse and impressive roster of institutional clients. We feel that their risk-managed, enhanced equity index strategies will meaningfully broaden our product line-up.”

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Nuveen Investments Reports Record 1st Quarter Earnings — Page 2

“In retail managed accounts, sales of $2.8 billion increased 10% compared to the previous quarter; however, sales declined 60% compared to the prior year as a result of our decision to close our Tradewinds international offering in April of 2006. Net outflows of $547 million for the quarter were in line with our expectations and were driven by Rittenhouse outflows and natural redemptions in our closed investment strategies at NWQ and Tradewinds. We remain in a transition period in our retail managed accounts business as we continue to ramp up other strategies, incubate new strategies and redeploy existing capacity to higher fee platforms and channels,” added Schwertfeger.

“In March, we raised approximately $300 million in a new closed-end fund offering, the Nuveen Core Equity Alpha Fund, and in the coming months, we plan to participate very actively in the market for new closed-end funds, as investors’ appetite for innovative new products remains strong. As a result of this participation, we will experience higher earnings volatility as we will incur upfront structuring fees on new closed-end funds. ”

“Our broadened investment capabilities and diversified asset base position us well for continued growth,” said Schwertfeger. “We ended the quarter with equity assets accounting for 51% of our total assets and municipal and taxable income-oriented portfolios comprising 39% and 10% of total assets, respectively.”

Nuveen Investments will host a conference call to discuss its first quarter results today at 10 a.m. central time. To access this call live or listen to an audio replay, visit the investor relations section of the Company’s website at www.nuveen.com.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Tradewinds, Rittenhouse and Symphony. In total, the Company manages $166 billion in assets as of March 31, 2007. Nuveen Investments is listed on the New York Stock Exchange and trades under the symbol “JNC.”

Certain statements made by the Company in this release are forward-looking statements. The Company’s actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to, the effects of the substantial competition in the investment management business, including competition for access to brokerage firms’ retail distribution systems, the Company’s reliance on revenues from investment management contracts which renew annually, regulatory developments, accounting pronouncements, and other additional risks and uncertainties as set forth in the Company’s filings with the SEC. The Company undertakes no responsibility to update publicly or revise any forward-looking statements.

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Financial Table Follows

NUVEEN INVESTMENTS
CONSOLIDATED STATEMENTS OF INCOME
For the Year Ended December 31, 2006 and the Quarter Ended March 31, 2007
In thousands, except share data

	2006
	1stQtr			2nd Qtr			3rd Qtr			4th Qtr			Total
REVENUES:
Investment advisory fees from assets under management (1)	$	156,275			168,923			176,925			183,725			685,847
Product distribution		1,237			733			1,697			1,077			4,745
Performance fees/other revenue		2,635			2,519			3,284			10,798			19,236
Total operating revenues		160,146			172,175			181,906			195,600			709,828
EXPENSES:
Compensation and benefits		53,821			59,646			72,911			77,307			263,686
Advertising and promotional costs		2,670			2,676			3,728			4,427			13,500
Occupancy and equipment costs		5,931			5,975			6,032			6,246			24,184
Amortization of intangible assets		1,673			2,798			1,995			1,967			8,433
Travel and entertainment		2,108			2,677			2,290			3,082			10,158
Outside and professional services		7,144			7,543			7,411			8,713			30,811
Minority interest expense		1,481			1,607			1,398			1,744			6,230
Other operating expenses		5,758			9,083			9,324			7,618			31,782
Total operating expenses		80,586			92,004			105,089			111,104			388,783
OTHER INCOME/(EXPENSE)		2,329			3,286			6,721			3,391			15,726
NET INTEREST EXPENSE		(8,345	)		(7,389	)		(6,678	)		(5,753	)		(28,166	)
INCOME BEFORE TAXES		73,544			76,068			76,859			82,134			308,605
INCOME TAXES:
Federal		24,122			24,950			24,901			25,975			99,948
State		4,560			4,716			5,775			5,925			20,976
Total income taxes		28,682			29,666			30,676			31,900			120,924
NET INCOME	$	44,862			46,402			46,183			50,234			187,680
AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING:
Basic		77,804			78,028			77,669			77,908			77,852
Diluted		83,044			83,069			82,934			83,401			83,148
EARNINGS PER SHARE:
Basic	$	0.58			0.59			0.59			0.64			2.41
Diluted	$	0.54			0.56			0.56			0.60			2.26
GROSS SALES (in millions):
Mutual funds	$	1,347			1,505			1,374			1,416			5,642

	2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Total
Managed accounts–retail		7,230			4,875			2,500			2,517			17,122
Managed accounts - -institutional		1,532			2,581			2,450			2,183			8,747
Closed-end funds		—			226			369			—			595
Total funds and accounts	$	10,109			9,187			6,694			6,116			32,106
NET FLOWS (in millions):
Mutual funds	$	864			856			886			1,015			3,622
Managed accounts-retail		4,114			2,178			(454	)		(350	)		5,488
Managed accounts - -institutional		932			1,811			1,590			1,275			5,607
Closed-end funds		(6	)		228			380			15			616
Total funds and accounts	$	5,903			5,072			2,402			1,955			15,332
MANAGED FUNDS AND ACCOUNTS (in millions):
ASSETS UNDER MANAGEMENT:
Beginning of period	$	136,117			145,017			148,994			154,167			136,117
Sales – funds and accounts		10,109			9,187			6,694			6,116			32,106
Dividend reinvestments		64			86			102			247			498
Redemptions and withdrawals		(4,269	)		(4,200	)		(4,394	)		(4,409	)		(17,272	)
Total net flows into funds and accounts		5,903			5,072			2,402			1,955			15,332
Appreciation/ (depreciation)of managed assets		2,997			(1,096	)		2,771			5,487			10,160
End of period	$	145,017			148,994			154,167			161,609			161,609
RECAP BY PRODUCT TYPE:
Mutual funds	$	15,398			16,133			17,407			18,532
Closed-end funds		51,813			51,388			52,791			52,958
Managed accounts-retail		53,651			55,277			55,633			58,556
Managed accounts - - institutional		24,154			26,195			28,335			31,563
Total assets under management	$	145,017			148,994			154,167			161,609
RECAP BY MANAGER:
Nuveen	$	75,005			75,072			77,195			78,328
NWQ		31,806			32,145			33,066			35,564
Rittenhouse		5,072			4,159			3,687			3,519
Santa Barbara		4,037			4,169			4,429			4,576
Symphony		6,247			6,870			7,168			7,651
Tradewinds		22,850			26,579			28,623			31,970
Total assets under management	$	145,017			148,994			154,167			161,609
RECAP BY STYLE:
Equity-based	$	69,964			73,636			76,773			82,772
Municipals		60,585			60,643			62,765			63,751
Taxable income-oriented		14,468			14,715			14,629			15,086
Total assets under management	$	145,017			148,994			154,167			161,609

	2007
	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Total
REVENUES:
Investment advisory fees from assets under management (1)	$	189,716			—		—		—		189,716
Product distribution		1,422			—		—		—		1,422
Performance fees/other revenue		5,689			—		—		—		5,689
Total operating revenues		196,827			—		—		—		196,827
EXPENSES:
Compensation and benefits		73,475			—		—		—		73,475
Advertising and promotional costs		3,391			—		—		—		3,391
Occupancy and equipment costs		6,741			—		—		—		6,741
Amortization of intangible assets		1,967			—		—		—		1,967
Travel and entertainment		2,185			—		—		—		2,185
Outside and professional services		8,005			—		—		—		8,005
Minority interest expense		2,335			—		—		—		2,335
Other operating expenses		7,673			—		—		—		7,673
Total operating expenses		105,772			—		—		—		105,772
OTHER INCOME/(EXPENSE)		1,314			—		—		—		1,314
NET INTEREST EXPENSE		(5,906	)		—		—		—		(5,906	)
INCOME BEFORE TAXES		86,464			—		—		—		86,464
INCOME TAXES:
Federal		28,239			—		—		—		28,239
State		5,914			—		—		—		5,914
Total income taxes		34,153			—		—		—		34,153
NET INCOME	$	52,310			—		—		—		52,310
AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING:
Basic		77,965			—		—		—		77,965
Diluted		83,370			—		—		—		83,370
EARNINGS PER SHARE:
Basic	$	0.67			—		—		—		0.67
Diluted	$	0.63			—		—		—		0.63
GROSS SALES (in millions):
Mutual funds	$	1,682			—		—		—		1,682
Managed accounts–retail		2,759			—		—		—		2,759
Managed accounts - -institutional		3,398			—		—		—		3,398
Closed-end funds		296			—		—		—		296
Total funds and accounts	$	8,134			—		—		—		8,134
NET FLOWS (in millions):
Mutual funds	$	1,015			—		—		—		1,015
Managed accounts-retail		(547	)		—		—		—		(547	)
Managed accounts - -institutional		2,249			—		—		—		2,249

	2007
	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Total
Closed-end funds		316			—		—		—		316
Total funds and accounts	$	3,033			—		—		—		3,033
MANAGED FUNDS AND ACCOUNTS (in millions):
ASSETS UNDER MANAGEMENT:
Beginning of period	$	161,609			—		—		—		161,609
Sales – funds and accounts		8,134			—		—		—		8,134
Dividend reinvestments		103			—		—		—		103
Redemptions and withdrawals		(5,204	)		—		—		—		(5,204	)
Total net flows into funds and accounts		3,033			—		—		—		3,033
Appreciation/ (depreciation) of managed assets		1,453			—		—		—		1,453
End of period	$	166,095			—		—		—		166,095
RECAP BY PRODUCT TYPE:
Mutual funds	$	19,584			—		—		—
Closed-end funds		53,091			—		—		—
Managed accounts-retail		58,713			—		—		—
Managed accounts - - institutional		34,707			—		—		—
Total assets under management	$	166,095			—		—		—
RECAP BY MANAGER:
Nuveen	$	79,430			—		—		—
NWQ		36,277			—		—		—
Rittenhouse		3,333			—		—		—
Santa Barbara		4,583			—		—		—
Symphony		8,953			—		—		—
Tradewinds		33,518			—		—		—
Total assets under management	$	166,095			—		—		—
RECAP BY STYLE:
Equity-based	$	85,531			—		—		—
Municipals		64,519			—		—		—
Taxable income-oriented		16,045			—		—		—
Total assets under management	$	166,095			—		—		—

(1) Advisory fee revenue will fluctuate based on the number of days in the quarter — In 2007, Q1 has 90 days, Q2 has 91 days, Q3 and Q4 have 92 days.