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3
Chair’s Letterto Shareholders Dear Shareholders,
The COVID-19 crisis is taking an unprecedented toll on our health, societies, economies and financial markets. Our thoughts are with you during this time of significant disruption caused by the disease and its economic fallout.
A renewed increase in COVID-19 cases in multiple areas, including an outbreak affecting President Trump and White House staffers and contacts, showed that controlling the spread of the novel coronavirus remains an ongoing public health concern as economies reopen and social activities resume. In the meantime, medical knowledge is improving and some areas have been able to implement much narrower restrictions when infection clusters have recurred. This, along with government stimulus, has helped an economic recovery gain traction, with a significant recovery in jobs, consumer spending, manufacturing and other indicators from their weakest levels. Additionally, progress toward a vaccine and treatments has been promising, while the timeline is unknown. Markets have recently taken an optimistic view, but the course of the virus and policy goals of the presumptive Biden administration – and their implications for the U.S. economic recovery – will continue to shape sentiment.
While we do not want to understate the dampening effect on the global economy, it is important to differentiate short-term interruptions from the longer-lasting implications to the economy. Prior to the COVID-19 crisis, some areas of the global economy were showing signs of improvement after trade tensions had weighed on economic activity for much of 2019. More recently, countries that have reopened have seen marked improvement in some near-term economic indicators.
Central banks and governments around the world have announced economic stimulus measures and pledged to continue doing what it takes to support their economies. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and introduced similar programs that helped revive the U.S. economy after the 2008 financial crisis. The U.S. Government has approved three relief packages, including a $2 trillion-dollar package directly supporting businesses and individuals. The Coronavirus Aid, Relief and Economic Security Act, called the CARES Act, has provided direct payments and expanded unemployment benefits to individuals, loans and grants to small businesses, loans and other money to large corporations and funding for hospitals, public health, education and state and local governments. Additional stimulus measures are expected after the election, even if control of Congress remains divided. In the European Union, the European Central Bank recently increased the size of its Pandemic Emergency Purchase Program, known as PEPP, to $1.6 trillion from $882 billion and extended its duration to June 2021.
In the meantime, patience and a long-term perspective are key for investors. When market fluctuations are the leading headlines day after day, it’s tempting to “do something.” However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial professional, who can review your time horizon, risk tolerance and investment goals. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence J. Toth
Chair of the Board
November 20, 2020
4
Portfolio Managers’ CommentsNuveen Select Tax-Free Income Portfolio (NXP)Nuveen Select Tax-Free Income Portfolio 2 (NXQ)Nuveen Select Tax-Free Income Portfolio 3 (NXR)Nuveen California Select Tax-Free Income Portfolio (NXC)Nuveen New York Select Tax-Free Income Portfolio (NXN) These Funds feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen, LLC, the Funds’ investment adviser. Portfolio managers Michael S. Hamilton and Scott R. Romans, PhD, discuss key investment strategies and the six-month performance of the Nuveen Select Portfolios (the “Funds”). Michael has managed the three national Funds since 2016, while Scott has managed NXC since 2003 and NXN since 2011.
An Update on COVID-19 Coronavirus and its Impact on the Securities Markets
Slowing COVID-19 coronavirus infection rates around the world encouraged authorities to loosen restrictions on business and social activity in recent months. While economic indicators have improved considerably from the depths of the shutdown, some regions, including the U.S. and Europe, have seen an uptick in infection rates after reopening, which prompted tightening coronavirus restrictions in some areas. Additionally, certain government programs supporting businesses and workers are expiring with little clarity on extensions or replacement options. Amid these challenges, the pace of recovery appeared to be moderating and short-term market volatility has picked up again.
The initial market response was severe, but the responses from central banks and governments to ease the strain on financial systems, businesses and individuals, as well as positive vaccine news, have helped markets bounce back from the depths of the crisis. 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 shutdowns across the global economy sharply reduced oil demand, although oil prices have recovered to well above those lows.
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 Group (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, while BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.
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)
While most markets have recovered most 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 verified treatments or vaccines). There are still many unknowns and new information is incoming daily, compounding the difficulty of modeling outcomes for epidemiologists and economists alike.
Nuveen, LLC and our portfolio management teams are monitoring the situation carefully and continuously refining our views and approaches to managing the Funds to best pursue investment objectives while mitigating risks through all market environments.
What key strategies were used to manage the Funds during the six-month reporting period ended September 30, 2020?
Each Fund seeks to provide current income and stable dividends, exempt from regular federal and designated state income taxes, where applicable, consistent with the preservation of capital by investing primarily in a portfolio of municipal obligations. Under normal market conditions, NXC and NXN invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in municipal bonds that pay interest that is exempt from regular federal personal income tax and a single state’s personal income tax. The Funds may invest up to 20% in municipal securities that are exempt from regular federal income tax, but not from that single state’s income tax if, in the Portfolio Manager’s judgement, such purchases are expected to enhance the Fund’s after-tax total return potential. To the extent that the Funds invest in bonds of municipal issuers located in other states, each Fund may have income that is not exempt from state personal income tax. The Fund may use inverse floating rate securities (or tender option bond financing) to more efficiently implement its investment strategy to create up to 10% effective leverage.
During the six-month reporting period, the municipal market continued to recover from the liquidity-driven sell-off in March 2020 (prior to the beginning of this reporting period). As the economic shock caused by COVID-19 containment measures was becoming apparent in March 2020, financial markets including U.S. municipal bonds responded dramatically. Interest rate volatility spiked, municipal bond prices severely dislocated from Treasury bond prices and municipal credit spreads widened to levels significantly above the long-term average. Quick intervention from the government and the Federal Reserve (Fed) brought stability to the municipal market, supporting a rebound in the high grade segments of the municipal bond market. Lower rated, higher yielding municipal bonds, however, were slower to rebound, as these credits are more typically found in sectors more affected by the COVID-19 crisis, including transportation, lodging, convention centers, hospitals, senior living facilities and higher education.
Despite the elevated volatility in March and April 2020, interest rates ended the six-month reporting period down slightly from the beginning of the reporting period. A sharper fall in short-term rates, driven by the Fed moving its benchmark target rate to zero, steepened the yield curve. Demand for municipal bonds began to recover, with investor inflows resuming a positive trend after the March-April 2020 sell-off, including in high yield municipal bonds. Issuance also approached more normal levels by the end of the reporting period. Notably, taxable municipal bonds’ share of issuance has risen meaningfully over the past year, which has increased the scarcity value of tax-exempt municipal bonds. Supply-demand conditions have therefore remained favorable for municipal bonds, helping credit spreads to narrow from the widest levels seen during the COVID-19 crisis volatility.
Our trading activity continued to focus on pursuing the Funds’ investment objectives. For the three national Funds, NXP, NXQ and NXR, we reinvested the proceeds from maturing bonds and variable rate demand notes that we held when prevailing rates were higher. We bought bonds across a diverse group of sectors, mainly in maturities of 15 years and longer but also a smaller amount of shorter maturity (4 years and shorter) bonds. These bonds were trading at attractive relative values due to the coronavirus-driven downturn in the market. We added New York MTA (Metropolitan Transportation Authority), which was under short-term pressure due to declining ridership during the pandemic but we believe has the potential to be resilient over the long term. NXC mainly bought lower rated, higher yielding debt, with net additions to tobacco securitization, tax supported and COFINA bonds. New purchases were funded with the cash flow from called and maturing bonds and from selectively selling high quality, low yielding debt. NXN added to health care credits and local general obligation (GO) debt, bought mostly with the proceeds from bond calls and maturities.
Additionally, the reporting period provided a favorable backdrop for executing tax-loss swaps. This strategy entailed selling depreciated bonds with lower yields and buying similarly structured but higher yielding bonds. We implemented this approach to enhance the Funds’ income earning capability and seek to make the Funds more tax efficient. Using this strategy, NXP, NXQ and NXR exchanged some Illinois state GOs, NXC exchanged some COFINA positions and NXN exchanged structures within transportation (MTA bonds), airports and leased terminals backed by airlines.
6
How did the Funds perform during the six-month reporting period ended September 30, 2020?
The tables in the Funds’ Performance Overview and Holding Summaries section of this report provide the Funds’ total return for the six-month, one-year, five-year and ten-year periods ended September 30, 2020. The Funds’ total returns on common share net asset value (NAV) are compared with the performance of corresponding market indexes.
For the six months ended September 30, 2020, the total returns on common share NAV for NXC outperformed the national S&P Municipal Bond Index’s return and the California state index’s returns, and NXN underperformed the national S&P Municipal Bond Index’s return and outperformed the New York state index’s returns. For the three national Funds, NXP and NXQ outperformed and NXR performed in line with the national S&P Municipal Bond Index during the six-month reporting period.
The factors affecting performance during this reporting period included duration and yield curve positioning, credit ratings allocations and sector positioning. In addition, the use of leverage through inverse floating rate securities affected the performance of NXN. The other Funds did not use leverage in this reporting period.
NXC, NXP, NXQ and NXR were favorably positioned along the yield curve for the curve steepening that occurred in this reporting period. As interest rates declined in this reporting period, longer duration bonds outperformed shorter durations. NXP was most helped by an overweight to 12 years and longer durations. NXQ benefited from both an overweight to 6 years and longer durations and an underweight to 4 years and shorter durations. NXR was aided by an overweight to 12 years and longer durations and an underweight to 8 years and shorter durations. NXC and NXN also held favorable overweights to long duration bonds. However, NXN’s overweight to the underperforming short end of the yield curve detracted from performance, outweighing the benefit of the overweight to the long end.
A substantial recovery in credit spreads during this reporting period helped lower rated bonds outperform the highest credit quality (AAA and AA rated) bonds. NXP and NXR’s credit quality positioning was disadvantageous, as the overweight to AA rated bonds with effective durations of 12 years or more was a drag on performance. Although each Fund’s long duration positioning was favorable overall, AA rated bonds at the long end of the curve lagged. NXQ fared better, with a beneficial underweight to high grade debt and overweight to bonds rated A and lower. NXQ and NXR held an underweight to non-rated bonds, which detracted from relative performance, as non-rated bonds performed well. For NXC, credit positioning was the largest positive contributor to relative performance, mainly due to overweight allocations to B rated and non-rated credit, which outperformed, while an underweight to the underperforming AA segment was also beneficial. However, the underperformance of BB rated bonds detracted slightly, as NXC held an overweight there. NXN was favorably positioned with overweight allocations to BBB and BB rated credit and an underweight to AA rated bonds.
On a sector basis, the three national Funds were boosted by an overweight to the tax supported sector, especially long duration dedicated tax bonds such as COFINAs and Guam business tax. In NXP, these gains were offset by an underweight to industrial development revenue (IDR) bonds, which detracted, resulting in an overall neutral impact to NXP’s performance. NXQ also benefited from allocations in higher education (particularly long duration bonds), transportation (especially long dated toll roads) and utilities (namely Salt Verde Prepay Gas bonds). However, NXQ’s underweight to the IDR sector was a slight detractor. NXR’s health care exposure, particularly durations of 4 to 6 years and 8 to 10 years, added value, but an underweight to the IDR sector partially detracted from performance. NXC’s sector allocations were an overall negative influence on relative performance. The California Fund’s significant underweight to local GOs and underweight to the IDR sector were unfavorable to relative performance. Slightly offsetting the underperformance was an overweight to the utilities sector, which outperformed. NXN’s sector positioning had a positive impact overall, mainly due to underweight allocations to the underperforming tax supported and health care sectors.
7
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Funds’ distributions is current as of September 30, 2020. Each Fund’s distribution levels may vary over time based on each Fund’s investment activity and portfolio investment value changes.
During the current reporting period, each Fund’s distributions to common shareholders were as shown in the accompanying table.
| | | | | | | | | | | | | | | | |
| | | Per Common Share Amounts | |
| Monthly Distributions (Ex-Dividend Date) | | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
April 2020 | | $ | 0.0455 | | | $ | 0.0420 | | | $ | 0.0435 | | | $ | 0.0437 | | | $ | 0.0395 | |
May | | | 0.0455 | | | | 0.0420 | | | | 0.0435 | | | | 0.0437 | | | | 0.0395 | |
June | | | 0.0455 | | | | 0.0420 | | | | 0.0435 | | | | 0.0437 | | | | 0.0395 | |
July | | | 0.0455 | | | | 0.0420 | | | | 0.0435 | | | | 0.0437 | | | | 0.0395 | |
August | | | 0.0455 | | | | 0.0420 | | | | 0.0435 | | | | 0.0437 | | | | 0.0395 | |
September 2020 | | | 0.0455 | | | | 0.0420 | | | | 0.0435 | | | | 0.0437 | | | | 0.0395 | |
| Total Distributions from Net Investment Income | | $ | 0.2730 | | | $ | 0.2520 | | | $ | 0.2610 | | | $ | 0.2622 | | | $ | 0.2370 | |
| | |
| Yields | | | | | | | | | | | | | | | | | | | | |
Market Yield* | | | 3.27 | % | | | 3.36 | % | | | 3.18 | % | | | 3.28 | % | | | 3.62 | % |
Taxable-Equivalent Yield* | | | 5.48 | % | | | 5.61 | % | | | 5.35 | % | | | 7.14 | % | | | 7.18 | % |
| |
| * Market Yield is based on the Fund’s current annualized monthly dividend divided by the Fund’s current market price as of the end of the reporting period. Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 40.8%, 40.8%, 40.8%, 54.1% and 49.6% for NXP, NXQ, NXR, NXC and NXN, respectively. Your actual combined federal and state income tax rate may differ from the assumed rate. The Taxable-Equivalent Yield also takes into account the percentage of the Fund’s income generated and paid by the Fund (based on payments made during the previous calendar year) that was either exempt from federal income tax but not from state income tax (e.g., income from an out-of-state municipal bond), or was exempt from neither federal nor state income tax. Separately, if the comparison were instead to investments that generate qualified dividend income, which is taxable at a rate lower than an individual’s ordinary graduated tax rate, the fund’s Taxable-Equivalent Yield would be lower. |
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 common 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, common shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of the 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.
8
NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS
The Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page, which is at https://www.nuveen.com/resource-center-closedendfunds, along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).
COMMON SHARE REPURCHASES
During August 2020, the Funds’ Board of Trustees reauthorized an open-market common share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding common shares.
As of September 30, 2020, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table.
| | | | | | |
| NXP | NXQ | NXR | NXC | NXN |
Common shares cumulatively repurchased and retired | — | — | — | — | — |
Common shares authorized for repurchase | 1,655,000 | 1,770,000 | 1,300,000 | 635,000 | 390,000 |
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
OTHER COMMON SHARE INFORMATION
As of September 30, 2020, and during the current reporting period, the Funds’ common share prices were trading at a premium/ (discount) to their common share NAVs as shown in the accompanying table.
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Common share NAV | | $ | 16.13 | | | $ | 15.41 | | | $ | 16.61 | | | $ | 15.79 | | | $ | 14.22 | |
Common share price | | $ | 16.69 | | | $ | 14.98 | | | $ | 16.40 | | | $ | 16.01 | | | $ | 13.08 | |
Premium/(Discount) to NAV | | | 3.47 | % | | | (2.79 | )% | | | (1.26 | )% | | | 1.39 | % | | | (8.02 | )% |
6-month average premium/(discount) to NAV | | | (1.13 | )% | | | (2.85 | )% | | | (3.10 | )% | | | (0.43 | )% | | | (7.72 | )% |
9
Risk Considerations
Fund common shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation.
Nuveen Select Tax-Free Income Portfolio (NXP)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund common shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. These and other risk considerations such as tax risk are described in more detail on the Fund’s web page at www.nuveen.com/NXP.
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund common shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. These and other risk considerations such as tax risk are described in more detail on the Fund’s web page at www.nuveen.com/NXQ.
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund common shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. These and other risk considerations such as tax risk are described in more detail on the Fund’s web page at www.nuveen.com/NXR.
Nuveen California Select Tax-Free Income Portfolio (NXC)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund common shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. State concentration makes the Fund more susceptible to local adverse economic, political, or regulatory changes affecting municipal bond issuers. These and other risk considerations such as tax risk are described in more detail on the Fund’s web page at www.nuveen.com/NXC.
10
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund common shares may frequently trade at a discount or premium to their net asset value. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. State concentration makes the Fund more susceptible to local adverse economic, political, or regulatory changes affecting municipal bond issuers. These and other risk considerations such as tax risk are described in more detail on the Fund’s web page at www.nuveen.com/NXN.
11
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio Performance Overview and Holding Summaries as of September 30, 2020 |
| | | | | |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section. |
| Average Annual Total Returns as of September 30, 2020 |
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NXP at Common Share NAV | 4.04% | 3.71% | 5.20% | 5.39% |
NXP at Common Share Price | 13.44% | 9.89% | 8.19% | 5.23% |
S&P Municipal Bond Index | 3.78% | 3.85% | 3.80% | 4.04% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
12
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the 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 Group, 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.
| | |
| Fund Allocation | |
| (% of net assets) | |
Long-Term Municipal Bonds | 98.2% |
Common Stocks | 0.3% |
Short-Term Municipal Bonds | 0.4% |
Other Assets Less Liabilities | 1.1% |
| Net Assets | 100% |
| | |
| Portfolio Credit Quality | |
| (% of total investment exposure) | |
U.S. Guaranteed | 8.0% |
AAA | 4.1% |
AA | 40.4% |
A | 26.4% |
BBB | 11.9% |
BB or Lower | 6.2% |
N/R | 2.7% |
N/A | 0.3% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/Limited | 32.4% |
Tax Obligation/General | 16.3% |
Transportation | 11.9% |
Health Care | 11.7% |
U.S. Guaranteed | 7.8% |
Education and Civic Organizations | 7.1% |
Other | 12.8% |
| Total | 100% |
| | |
| States and Territories | |
| (% of total municipal bonds) | |
California | 16.4% |
Texas | 10.6% |
New Jersey | 10.3% |
Illinois | 9.6% |
Colorado | 6.6% |
Connecticut | 5.4% |
Washington | 3.9% |
Massachusetts | 3.8% |
Missouri | 2.9% |
Virginia | 2.7% |
Guam | 2.6% |
Iowa | 2.5% |
Arizona | 2.4% |
Oregon | 2.2% |
Other | 18.1% |
Total1 | 100% |
1 See Portfolio of Investments for details on “other” States and Territories.
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| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Performance Overview and Holding Summaries as of September 30, 2020 |
| | | | | |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section. |
| Average Annual Total Returns as of September 30, 2020 |
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NXQ at Common Share NAV | 4.23% | 3.61% | 4.84% | 5.28% |
NXQ at Common Share Price | 7.22% | 3.44% | 6.51% | 4.78% |
S&P Municipal Bond Index | 3.78% | 3.85% | 3.80% | 4.04% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
14
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the 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 Group, 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.
| | |
| Fund Allocation | |
| (% of net assets) | |
Long-Term Municipal Bonds | 98.3% |
Common Stocks | 0.3% |
Short-Term Municipal Bonds | 0.4% |
Other Assets Less Liabilities | 1.0% |
| Net Assets | 100% |
| | |
| Portfolio Credit Quality | |
| (% of total investment exposure) | |
U.S. Guaranteed | 6.4% |
AAA | 3.6% |
AA | 31.5% |
A | 33.6% |
BBB | 16.5% |
BB or Lower | 5.6% |
N/R | 2.5% |
N/A | 0.3% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/Limited | 22.5% |
Tax Obligation/General | 20.9% |
Transportation | 17.6% |
Health Care | 13.3% |
U.S. Guaranteed | 6.4% |
Education and Civic Organizations | 5.9% |
Utilities | 5.8% |
Other | 7.6% |
| Total | 100% |
| | |
| States and Territories | |
| (% of total municipal bonds) | |
California | 15.7% |
Illinois | 10.0% |
Texas | 9.9% |
Colorado | 8.5% |
Massachusetts | 5.7% |
Arizona | 4.8% |
Washington | 4.8% |
Florida | 3.9% |
Connecticut | 3.3% |
Pennsylvania | 3.0% |
New Jersey | 2.5% |
Guam | 2.4% |
Wisconsin | 2.4% |
Indiana | 2.4% |
Virginia | 2.0% |
Other | 18.7% |
Total1 | 100% |
1 See Portfolio of Investments for details on “other” States and Territories.
15
| | |
| NXR | Nuveen Select Tax-Free Income Portfolio 3 Performance Overview and Holding Summaries as of September 30, 2020 |
| | | | | |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section. |
| Average Annual Total Returns as of September 30, 2020 |
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NXR at Common Share NAV | 3.71% | 4.02% | 5.34% | 5.58% |
NXR at Common Share Price | 8.24% | 5.36% | 7.37% | 5.10% |
S&P Municipal Bond Index | 3.78% | 3.85% | 3.80% | 4.04% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
16
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the 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 Group, 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.
| | |
| Fund Allocation | |
| (% of net assets) | |
Long-Term Municipal Bonds | 98.1% |
Common Stocks | 0.4% |
Short-Term Municipal Bonds | 0.4% |
Other Assets Less Liabilities | 1.1% |
| Net Assets | 100% |
| | |
| Portfolio Credit Quality | |
| (% of total investment exposure) | |
U.S. Guaranteed | 13.7% |
AAA | 1.4% |
AA | 34.3% |
A | 25.7% |
BBB | 16.2% |
BB or Lower | 5.0% |
N/R | 3.4% |
N/A | 0.3% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/Limited | 27.2% |
Tax Obligation/General | 21.1% |
U.S. Guaranteed | 14.4% |
Transportation | 10.9% |
Health Care | 7.3% |
Water and Sewer | 6.3% |
Education and Civic Organizations | 5.1% |
Other | 7.7% |
| Total | 100% |
| | |
| States and Territories | |
| (% of total municipal bonds) | |
California | 25.5% |
Texas | 9.3% |
Illinois | 9.0% |
Massachusetts | 7.2% |
Pennsylvania | 4.8% |
Washington | 4.5% |
Connecticut | 3.7% |
Ohio | 3.6% |
Virginia | 3.0% |
New Jersey | 3.0% |
Colorado | 3.0% |
Puerto Rico | 2.3% |
Florida | 1.7% |
Other | 19.4% |
Total1 | 100% |
1 See Portfolio of Investments for details on “other” States and Territories.
17
| | |
| NXC | Nuveen California Select Tax-Free Income Portfolio Performance Overview and Holding Summaries as of September 30, 2020 |
| | | | | |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
|
| Average Annual Total Returns as of September 30, 2020 |
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NXC at Common Share NAV | 4.05% | 3.92% | 4.65% | 5.59% |
NXC at Common Share Price | 12.27% | 5.33% | 5.13% | 6.19% |
S&P Municipal Bond California Index | 3.95% | 4.00% | 3.88% | 4.53% |
S&P Municipal Bond Index | 3.78% | 3.85% | 3.80% | 4.04% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
18
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the 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 Group, 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.
| | |
| Fund Allocation | |
| (% of net assets) | |
Long-Term Municipal Bonds | 99.1% |
Other Assets Less Liabilities | 0.9% |
| Net Assets | 100% |
| | |
| States and Territories | |
| (% of total municipal bonds) | |
California | 97.5% |
Puerto Rico | 1.4% |
Virgin Islands | 1.1% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/General | 23.5% |
Tax Obligation/Limited | 18.7% |
Water and Sewer | 12.2% |
Transportation | 11.8% |
Health Care | 10.0% |
U.S. Guaranteed | 8.9% |
Utilities | 8.8% |
Other | 6.1% |
| Total | 100% |
| | |
| Portfolio Credit Quality | |
| (% of total investment exposure) | |
U.S. Guaranteed | 6.1% |
AAA | 15.3% |
AA | 43.7% |
A | 17.6% |
BBB | 6.0% |
BB or Lower | 6.3% |
N/R | 5.0% |
| Total | 100% |
19
| | |
| NXN | Nuveen New York Select Tax-Free Income Portfolio Performance Overview and Holding Summaries as of September 30, 2020 |
| | | | | |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section. |
| Average Annual Total Returns as of September 30, 2020 |
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NXN at Common Share NAV | 3.36% | 2.02% | 3.54% | 3.96% |
NXN at Common Share Price | 5.28% | (1.83)% | 3.48% | 3.27% |
S&P Municipal Bond New York Index | 2.78% | 2.51% | 3.35% | 3.72% |
S&P Municipal Bond Index | 3.78% | 3.85% | 3.80% | 4.04% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
20
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the 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 Group, 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.
| | |
| Fund Allocation | |
| (% of net assets) | |
Long-Term Municipal Bonds | 97.3% |
Other Assets Less Liabilities | 2.7% |
| Net Assets | 100% |
| | |
| States and Territories | |
| (% of total municipal bonds) | |
New York | 95.2% |
Guam | 2.2% |
Virgin Islands | 1.7% |
Puerto Rico | 0.9% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/Limited | 19.9% |
Transportation | 19.1% |
Education and Civic Organizations | 13.9% |
Water and Sewer | 10.0% |
U.S. Guaranteed | 9.0% |
Utilities | 7.6% |
Tax Obligation/General | 7.6% |
Other | 12.9% |
| Total | 100% |
| | |
| Portfolio Credit Quality | |
| (% of total investment exposure) | |
U.S. Guaranteed | 9.0% |
AAA | 14.8% |
AA | 41.7% |
A | 7.3% |
BBB | 12.0% |
BB or Lower | 10.5% |
N/R (not rated) | 4.7% |
| Total | 100% |
21
Shareholder Meeting Report
The annual meeting of shareholders was held on August 5, 2020 for NXP, NXQ, NXR, NXC and NXN. The meeting was held virtually due to public health concerns regarding the ongoing COVID-19 pandemic; at this meeting the shareholders were asked to elect Board members.
| | | | | | |
| NXP | NXQ | NXR | NXC | NXN |
| Common | Common | Common | Common | Common |
| Shares | Shares | Shares | Shares | Shares |
| Approval of the Board Members was reached as follows: | | | | | |
John K. Nelson | | | | | |
| For | 13,957,273 | 15,539,546 | 11,505,084 | 5,311,217 | 3,370,490 |
| Withhold | 405,991 | 333,282 | 217,560 | 93,731 | 45,748 |
| Total | 14,363,264 | 15,872,828 | 11,722,644 | 5,404,948 | 3,416,238 |
Terence J. Toth | | | | | |
| For | 13,909,837 | 15,511,168 | 11,454,880 | 5,315,218 | 3,370,490 |
| Withhold | 453,427 | 361,660 | 267,764 | 89,730 | 45,748 |
| Total | 14,363,264 | 15,872,828 | 11,722,644 | 5,404,948 | 3,416,238 |
Robert L. Young | | | | | |
| For | 13,954,281 | 15,554,958 | 11,505,084 | 5,281,660 | 3,370,490 |
| Withhold | 408,983 | 317,870 | 217,560 | 123,288 | 45,748 |
| Total | 14,363,264 | 15,872,828 | 11,722,644 | 5,404,948 | 3,416,238 |
22
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 98.5% | | | |
| | MUNICIPAL BONDS – 98.2% | | | |
| | Alaska – 0.3% | | | |
| $ 775 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B3 | $ 778,836 |
| | Bonds, Series 2006A, 5.000%, 6/01/46 | | | |
| | Arizona – 2.4% | | | |
| 1,015 | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Series 2020B, | 7/30 at 100.00 | AA | 1,196,573 |
| | 4.000%, 7/01/47 | | | |
| 2,500 | | Arizona Health Facilities Authority, Hospital Revenue Bonds, Catholic Healthcare West, | 3/21 at 100.00 | BBB+ | 2,543,000 |
| | Series 2011B-1&2, 5.250%, 3/01/39 | | | |
| 160 | | Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, | No Opt. Call | BB | 160,722 |
| | Basis Schools, Inc Projects, Series 2017D, 3.000%, 7/01/22, 144A | | | |
| 255 | | Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, | No Opt. Call | AA– | 274,423 |
| | Basis Schools, Inc Projects, Series 2017F, 3.000%, 7/01/26 | | | |
| 350 | | Arizona Industrial Development Authority, Arizona, Education Revenue Bonds, Academies of | No Opt. Call | AA– | 367,139 |
| | Math & Science Projects, Series 2018A, 4.000%, 7/01/22 | | | |
| 95 | | Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, | No Opt. Call | BB+ | 95,197 |
| | Paradise Schools Projects, Series 2016, 2.875%, 7/01/21, 144A | | | |
| 1,000 | | Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, | 1/27 at 100.00 | AA– | 1,190,790 |
| | Refunding Series 2016A, 5.000%, 1/01/38 | | | |
| 500 | | Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, | 7/29 at 100.00 | AA– | 566,600 |
| | Series 2019A, 4.000%, 1/01/44 | | | |
| 5,875 | | Total Arizona | | | 6,394,444 |
| | Arkansas – 1.1% | | | |
| 6,555 | | Arkansas Development Finance Authority, Tobacco Settlement Revenue Bonds, Arkansas | No Opt. Call | Aa2 | 2,989,080 |
| | Cancer Research Center Project, Series 2006, 0.000%, 7/01/46– AMBAC Insured | | | |
| | California – 16.2% | | | |
| 4,245 | | Anaheim City School District, Orange County, California, General Obligation Bonds, | No Opt. Call | AA | 3,505,818 |
| | Election 2002 Series 2007, 0.000%, 8/01/31– AGM Insured | | | |
| 2,840 | | Anaheim Public Financing Authority, California, Lease Revenue Bonds, Public Improvement | No Opt. Call | AA | 2,384,208 |
| | Project, Series 1997C, 0.000%, 9/01/30– AGM Insured | | | |
| 3,000 | | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, | 4/23 at 100.00 | AA– (4) | 3,364,140 |
| | Series 2013S-4, 5.000%, 4/01/38 (Pre-refunded 4/01/23) | | | |
| 40 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, | 6/30 at 100.00 | BBB+ | 44,612 |
| | Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49 | | | |
| 2,310 | | California Health Facilities Financing Authority, Revenue Bonds, Saint Joseph Health | 7/23 at 100.00 | AA– | 2,541,508 |
| | System, Series 2013A, 5.000%, 7/01/33 | | | |
| 1,630 | | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, | 11/23 at 100.00 | Aa3 | 1,832,528 |
| | Series 2013I, 5.000%, 11/01/38 | | | |
| 2,645 | | Cypress Elementary School District, Orange County, California, General Obligation Bonds, | No Opt. Call | AA | 2,044,902 |
| | Series 2009A, 0.000%, 5/01/34– AGM Insured | | | |
| 2,710 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | No Opt. Call | Aa3 | 2,433,282 |
| | Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28– AMBAC Insured | | | |
| 3,030 | | Grossmont Union High School District, San Diego County, California, General Obligation | No Opt. Call | Aa2 | 2,937,161 |
| | Bonds, Series 2006, 0.000%, 8/01/25– NPFG Insured | | | |
| 1,000 | | Moreno Valley Unified School District, Riverside County, California, General Obligation | No Opt. Call | A+ | 982,300 |
| | Bonds, Refunding Series 2007, 0.000%, 8/01/23– NPFG Insured | | | |
23
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | California (continued) | | | |
| $ 1,160 | | Mount San Antonio Community College District, Los Angeles County, California, General | 8/35 at 100.00 | Aa1 | $ 1,245,295 |
| | Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/43 (6) | | | |
| 4,390 | | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community | No Opt. Call | AA– | 3,804,198 |
| | Development Project, Series 1999, 0.000%, 8/01/29– AMBAC Insured | | | |
| 1,700 | | Placentia-Yorba Linda Unified School District, Orange County, California, Certificates | No Opt. Call | A+ (4) | 1,356,328 |
| | of Participation, Series 2006, 0.000%, 10/01/34– FGIC Insured (ETM) | | | |
| 8,000 | | Poway Unified School District, San Diego County, California, General Obligation Bonds, | No Opt. Call | AA– | 6,307,600 |
| | School Facilities Improvement District 2007-1, Election 2008 Series 2009A, 0.000%, 8/01/33 | | | |
| 1,350 | | San Diego Association of Governments, California, South Bay Expressway Toll Revenue | 7/27 at 100.00 | A | 1,554,120 |
| | Bonds, First Senior Lien Series 2017A, 5.000%, 7/01/42 | | | |
| 675 | | San Diego County Regional Airport Authority, California, Airport Revenue Bonds, | 7/29 at 100.00 | A+ | 824,472 |
| | Subordinate Series 2019B, 5.000%, 7/01/38 (AMT) | | | |
| 1,800 | | San Francisco City and County Public Utilities Commission, California, Water Revenue | 11/24 at 100.00 | Aa2 | 2,087,082 |
| | Bonds, Non-WSIP, Series 2017A, 5.000%, 11/01/42 | | | |
| 2,110 | | Sierra Sands Unified School District, Kern County, California, General Obligation Bonds, | No Opt. Call | AA | 1,898,536 |
| | Election of 2006, Series 2006A, 0.000%, 11/01/28– FGIC Insured | | | |
| 1,195 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B– | 1,201,979 |
| | Bonds, Series 2005A-1, 5.500%, 6/01/45 | | | |
| 1,150 | | Woodside Elementary School District, San Mateo County, California, General Obligation | No Opt. Call | AAA | 1,018,383 |
| | Bonds, Election of 2005, Series 2007, 0.000%, 10/01/30– AMBAC Insured | | | |
| 46,980 | | Total California | | | 43,368,452 |
| | Colorado – 6.5% | | | |
| 500 | | Centerra Metropolitan District 1, Loveland, Colorado, Special Revenue Bonds, Refunding & | No Opt. Call | N/R | 510,470 |
| | Improvement Series 2017, 5.000%, 12/01/21, 144A | | | |
| 1,780 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health | 1/23 at 100.00 | BBB+ (4) | 1,976,334 |
| | Initiatives, Series 2013A, 5.250%, 1/01/45 (Pre-refunded 1/01/23) | | | |
| 150 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, CommonSpirit Health, | 8/29 at 100.00 | BBB+ | 165,727 |
| | Series 2019A-1, 4.000%, 8/01/44 | | | |
| 2,630 | | Colorado School of Mines Board of Trustees, Golden, Colorado, Institutional Enterprise | 12/27 at 100.00 | A+ | 3,087,331 |
| | Revenue Bonds, Series 2017B, 5.000%, 12/01/47 | | | |
| 810 | | Colorado Springs, Colorado, Utilities System Revenue Bonds, Refunding Series 2020A, | 11/30 at 100.00 | AA+ | 977,249 |
| | 4.000%, 11/15/45 | | | |
| 660 | | Colorado State, Certificates of Participation, Rural Series 2020A, 4.000%, 12/15/37 | 12/30 at 100.00 | Aa2 | 796,184 |
| 1,935 | | Denver City and County, Colorado, Airport System Revenue Bonds, Subordinate Lien Series | 11/23 at 100.00 | A+ | 2,119,909 |
| | 2013B, 5.000%, 11/15/43 | | | |
| 250 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, | No Opt. Call | A | 218,510 |
| | 9/01/29– NPFG Insured | | | |
| 12,500 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2006A, 0.000%, | 9/26 at 54.77 | A | 6,216,500 |
| | 9/01/38– NPFG Insured | | | |
| 605 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2020A, | 9/24 at 100.00 | A | 689,174 |
| | 5.000%, 9/01/40 | | | |
| 620 | | Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported | 12/25 at 100.00 | A | 724,749 |
| | Revenue Bonds, Refunding Series 2015A, 5.000%, 12/01/35 | | | |
| 22,440 | | Total Colorado | | | 17,482,137 |
| | Connecticut – 5.3% | | | |
| 690 | | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven | 1/24 at 100.00 | AA– | 717,697 |
| | Health Issue, Series 2014D, 1.800%, 7/01/49 (Mandatory Put 7/01/24) | | | |
| 2,500 | | Connecticut State, General Obligation Bonds, Green Series 2014G, 5.000%, 11/15/31 | 11/24 at 100.00 | A1 | 2,878,600 |
| 1,000 | | Connecticut State, General Obligation Bonds, Refunding Series 2012E, 5.000%, 9/15/32 | 9/22 at 100.00 | A1 | 1,072,540 |
| 1,000 | | Connecticut State, General Obligation Bonds, Refunding Series 2018C, 5.000%, 6/15/26 | No Opt. Call | A1 | 1,236,090 |
24
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Connecticut (continued) | | | |
| $ 1,860 | | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes | 10/23 at 100.00 | A+ | $ 2,098,229 |
| | Series 2013A, 5.000%, 10/01/30 | | | |
| 1,625 | | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, | 9/24 at 100.00 | A+ | 1,875,900 |
| | Series 2014A, 5.000%, 9/01/34 | | | |
| 3,000 | | Hartford County Metropolitan District, Connecticut, Clean Water Project Revenue Bonds, | 11/24 at 100.00 | Aa2 | 3,434,430 |
| | Refunding Green Bond Series 2014A, 5.000%, 11/01/42 | | | |
| 750 | | University of Connecticut, General Obligation Bonds, Series 2015A, 5.000%, 3/15/31 | 3/26 at 100.00 | A+ | 888,877 |
| 12,425 | | Total Connecticut | | | 14,202,363 |
| | District of Columbia – 1.1% | | | |
| 1,975 | | District of Columbia Water and Sewer Authority, Public Utility Revenue Bonds, | 10/22 at 100.00 | AA+ | 2,164,225 |
| | Subordinate Lien Series 2012A, 5.000%, 10/01/25 | | | |
| 600 | | Washington Metropolitan Area Transit Authority, District of Columbia, Dedicated Revenue | 7/30 at 100.00 | AA | 698,928 |
| | Bonds, Series 2020A, 4.000%, 7/15/45 | | | |
| 2,575 | | Total District of Columbia | | | 2,863,153 |
| | Florida – 0.6% | | | |
| 1,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Refunding Series 2019A, 5.000%, | 10/29 at 100.00 | A | 1,184,430 |
| | 10/01/49 (AMT) | | | |
| 470 | | Tampa, Florida, Revenue Bonds, H Lee Moffitt Cancer Center and Research Institute, | 7/30 at 100.00 | A2 | 572,089 |
| | Series 2020B, 5.000%, 7/01/50 | | | |
| 1,470 | | Total Florida | | | 1,756,519 |
| | Georgia – 0.6% | | | |
| 1,300 | | Brookhaven Development Authority, Georgia, Revenue Bonds, Children’s Healthcare of | 7/29 at 100.00 | AA+ | 1,491,191 |
| | Atlanta, Inc Project, Series 2019A, 4.000%, 7/01/44 | | | |
| | Guam – 2.6% | | | |
| 3,000 | | Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, | 11/25 at 100.00 | BB | 3,262,110 |
| | 5.000%, 11/15/39 | | | |
| 1,650 | | Government of Guam, Hotel Occupancy Tax Revenue Bonds, Series 2011A, 6.000%, 11/01/26 | 5/21 at 100.00 | BB | 1,665,098 |
| 1,740 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series | 7/23 at 100.00 | A– | 1,936,898 |
| | 2013, 5.250%, 7/01/25 | | | |
| 6,390 | | Total Guam | | | 6,864,106 |
| | Idaho – 1.2% | | | |
| 3,000 | | Idaho Health Facilities Authority, Revenue Bonds, Saint Luke’s Health System Project, | 3/24 at 100.00 | A– | 3,288,750 |
| | Series 2014A, 5.000%, 3/01/44 | | | |
| | Illinois – 9.4% | | | |
| 2,000 | | Board of Trustees of Southern Illinois University, Housing and Auxiliary Facilities | No Opt. Call | Baa2 | 1,888,820 |
| | System Revenue Bonds, Series 1999A, 0.000%, 4/01/23– NPFG Insured | | | |
| 725 | | Chicago Board of Education, Illinois, Dedicated Capital Improvement Tax Revenue Bonds, | 4/27 at 100.00 | A– | 839,760 |
| | Series 2016, 6.000%, 4/01/46 | | | |
| 735 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues | 12/21 at 100.00 | BB | 742,438 |
| | Series 2011A, 5.000%, 12/01/41 | | | |
| 735 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB | 816,004 |
| | Refunding Series 2017C, 5.000%, 12/01/30 | | | |
| 360 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/26 at 100.00 | BB | 421,466 |
| | Series 2016B, 6.500%, 12/01/46 | | | |
| 55 | | Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated | No Opt. Call | Baa2 | 42,997 |
| | Tax Revenues, Series 1998B-1, 0.000%, 12/01/28– FGIC Insured | | | |
| 880 | | Chicago, Illinois, General Obligation Bonds, Project & Refunding Series 2017A, | 1/27 at 100.00 | BBB+ | 962,588 |
| | 6.000%, 1/01/38 | | | |
25
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Illinois (continued) | | | |
| | Illinois Finance Authority, Revenue Bonds, Northwestern Memorial HealthCare, Series 2013: | | | |
| $ 2,100 | | 4.000%, 8/15/33 | 8/22 at 100.00 | AA+ | $ 2,204,202 |
| 2,245 | | 5.000%, 8/15/43 | 8/22 at 100.00 | AA+ | 2,368,902 |
| 260 | | Illinois Finance Authority, Revenue Bonds, Rehabilitation Institute of Chicago, Series | 7/23 at 100.00 | A– | 287,258 |
| | 2013A, 6.000%, 7/01/43 | | | |
| 2,070 | | Illinois State, General Obligation Bonds, Refunding September Series 2018B, | No Opt. Call | BBB– | 2,194,366 |
| | 5.000%, 10/01/23 | | | |
| 1,000 | | Kendall, Kane, and Will Counties Community Unit School District 308 Oswego, Illinois, | No Opt. Call | A2 | 975,510 |
| | General Obligation Bonds, Series 2008, 0.000%, 2/01/24– AGM Insured | | | |
| | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place | | | |
| | Expansion Project, Series 2002A: | | | |
| 1,720 | | 0.000%, 12/15/29– NPFG Insured | No Opt. Call | BBB | 1,317,090 |
| 45 | | 0.000%, 6/15/30 (ETM) | No Opt. Call | N/R (4) | 39,569 |
| 765 | | 0.000%, 6/15/30 | No Opt. Call | BBB | 573,345 |
| 6,070 | | 0.000%, 12/15/31– NPFG Insured | No Opt. Call | BBB | 4,268,788 |
| 5,000 | | 0.000%, 12/15/36– NPFG Insured | No Opt. Call | BBB | 2,829,700 |
| 1,775 | | Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28 | 3/25 at 100.00 | A | 2,096,382 |
| 310 | | University of Illinois, Health Services Facilities System Revenue Bonds, Series 2013, | 10/23 at 100.00 | A– | 341,378 |
| | 6.000%, 10/01/42 | | | |
| 28,850 | | Total Illinois | | | 25,210,563 |
| | Indiana – 0.9% | | | |
| 1,250 | | Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, | 10/24 at 100.00 | AA | 1,431,687 |
| | Series 2015A, 5.000%, 10/01/45 | | | |
| 1,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Series 1999E, 0.000%, 2/01/24 – | No Opt. Call | AA | 979,080 |
| | AMBAC Insured | | | |
| 2,250 | | Total Indiana | | | 2,410,767 |
| | Iowa – 2.5% | | | |
| 710 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 11/20 at 104.00 | BB– | 739,195 |
| | Company Project, Series 2016, 5.875%, 12/01/26, 144A | | | |
| 830 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/22 at 105.00 | BB– | 877,601 |
| | Company Project, Series 2018B, 5.250%, 12/01/50 (Mandatory Put 12/01/37) | | | |
| 1,000 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, | 11/20 at 100.00 | B– | 1,014,730 |
| | 5.375%, 6/01/38 | | | |
| 4,000 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, | 11/20 at 100.00 | B– | 4,058,920 |
| | 5.600%, 6/01/34 | | | |
| 6,540 | | Total Iowa | | | 6,690,446 |
| | Kentucky – 1.0% | | | |
| 2,500 | | Kentucky Economic Development Finance Authority, Hospital Revenue Bonds, Baptist | 8/21 at 100.00 | A2 | 2,564,125 |
| | Healthcare System Obligated Group, Series 2011, 5.250%, 8/15/46 | | | |
| | Massachusetts – 3.8% | | | |
| 1,000 | | Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Series | 7/28 at 100.00 | A | 1,198,870 |
| | 2018J-2, 5.000%, 7/01/43 | | | |
| 1,625 | | Massachusetts Development Finance Agency, Revenue Bonds, Olin College, Series 2013E, | 11/23 at 100.00 | A+ | 1,771,266 |
| | 5.000%, 11/01/43 | | | |
| 200 | | Massachusetts Development Finance Agency, Revenue Bonds, UMass Memorial Health Care | 7/27 at 100.00 | A– | 213,768 |
| | Obligated Group Issue, Series 2017L, 3.625%, 7/01/37 | | | |
| 2,500 | | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Subordinated | 2/26 at 100.00 | AA+ | 2,965,925 |
| | Series 2019A, 5.000%, 2/15/49 | | | |
| 2,415 | | Massachusetts State, Federal Highway Grant Anticipation Notes, Accelerated Bridge | 6/27 at 100.00 | AA+ | 2,933,307 |
| | Program, Series 2017A, 5.000%, 6/01/47 | | | |
| 975 | | Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Series 2011C, | 8/21 at 100.00 | AA+ (4) | 1,016,428 |
| | 5.250%, 8/01/42 (Pre-refunded 8/01/21) | | | |
| 8,715 | | Total Massachusetts | | | 10,099,564 |
26
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Michigan – 0.1% | | | |
| $ 355 | | Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds, | 7/22 at 100.00 | AA– (4) | $ 386,513 |
| | Refunding Senior Lien Series 2012A, 5.250%, 7/01/39 (Pre-refunded 7/01/22) | | | |
| | Missouri – 2.8% | | | |
| | Kansas City Municipal Assistance Corporation, Missouri, Leasehold Revenue Bonds, | | | |
| | Series 2004B-1: | | | |
| 1,165 | | 0.000%, 4/15/23– AMBAC Insured | No Opt. Call | AA | 1,146,139 |
| 5,000 | | 0.000%, 4/15/30– AMBAC Insured | No Opt. Call | AA– | 4,246,550 |
| 2,000 | | Missouri Health and Educational Facilities Authority, Health Facilities Revenue Bonds, | 11/23 at 100.00 | A2 | 2,194,020 |
| | CoxHealth, Series 2013A, 5.000%, 11/15/38 | | | |
| 8,165 | | Total Missouri | | | 7,586,709 |
| | Nevada – 0.1% | | | |
| 275 | | Carson City, Nevada, Hospital Revenue Bonds, Carson Tahoe Regional Healthcare Project, | 9/27 at 100.00 | A– | 318,084 |
| | Series 2017A, 5.000%, 9/01/37 | | | |
| | New Hampshire – 0.5% | | | |
| 1,250 | | New Hampshire Business Finance Authority, Solid Waste Disposal Revenue Bonds, Waste | No Opt. Call | A– | 1,336,413 |
| | Management Inc Project, Series 2003, 3.125%, 8/01/24 (AMT) | | | |
| | New Jersey – 10.2% | | | |
| 940 | | New Jersey Economic Development Authority, Private Activity Bonds, The Goethals Bridge | 1/24 at 100.00 | AA | 1,044,105 |
| | Replacement Project, Series 2013, 5.125%, 1/01/39– AGM Insured (AMT) | | | |
| 1,035 | | New Jersey Economic Development Authority, School Facilities Construction Financing | 3/21 at 100.00 | BBB+ | 1,050,784 |
| | Program Bonds, Refunding Series 2011GG, 5.000%, 9/01/22 | | | |
| 1,380 | | New Jersey Economic Development Authority, Sublease Revenue Bonds, New Jersey Transit | No Opt. Call | BBB+ | 1,528,709 |
| | Corporation Projects, Refunding Series 2017B, 5.000%, 11/01/23 | | | |
| 260 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, University | 7/25 at 100.00 | AA | 297,143 |
| | Hospital Issue, Refunding Series 2015A, 5.000%, 7/01/29– AGM Insured | | | |
| 35,000 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding | No Opt. Call | AA | 23,249,450 |
| | Series 2006C, 0.000%, 12/15/34– AGM Insured | | | |
| 38,615 | | Total New Jersey | | | 27,170,191 |
| | New Mexico – 1.3% | | | |
| 1,000 | | Farmington Municipal School District 5, San Juan County, New Mexico, General Obligation | 9/25 at 100.00 | Aa3 | 1,215,370 |
| | Bonds, School Building Series 2015, 5.000%, 9/01/28 | | | |
| 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, | 10/20 at 100.00 | N/R | 1,020,840 |
| | Series 2007A, 5.250%, 9/01/42 (AMT) | | | |
| 1,035 | | University of New Mexico, Revenue Bonds, Refunding & Improvement Subordinate Lien Series | 6/26 at 100.00 | AA– | 1,188,066 |
| | 2016A, 4.500%, 6/01/36 | | | |
| 3,035 | | Total New Mexico | | | 3,424,276 |
| | New York – 1.5% | | | |
| | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 | | | |
| | Series 2011A: | | | |
| 25 | | 5.250%, 2/15/47 (Pre-refunded 2/15/21) | 2/21 at 100.00 | Aa2 (4) | 25,474 |
| 475 | | 5.250%, 2/15/47 | 2/21 at 100.00 | Aa2 | 482,828 |
| 1,000 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Green | No Opt. Call | A+ | 1,047,770 |
| | Climate Bond Certified Series 2019A-1, 5.000%, 11/15/48 (Mandatory Put 11/15/24) | | | |
| 1,100 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding | 11/22 at 100.00 | A+ | 1,126,488 |
| | Series 2002D-1, 5.000%, 11/01/27 | | | |
| 780 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air | 12/20 at 100.00 | Baa1 | 786,802 |
| | Terminal LLC Project, Eigth Series 2010, 6.000%, 12/01/42 | | | |
| 500 | | TSASC Inc, New York, Tobacco Settlement Asset-Backed Bonds, Fiscal 2017 Series B, | No Opt. Call | B– | 512,690 |
| | 5.000%, 6/01/24 | | | |
| 3,880 | | Total New York | | | 3,982,052 |
27
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Ohio – 2.1% | | | |
| $ 230 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | BBB+ | $ 251,588 |
| | Revenue Bonds, Refunding Senior Lien Series 2020A-2 Class 1, 4.000%, 6/01/48 | | | |
| 360 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | N/R | 383,252 |
| | Revenue Bonds, Refunding Senior Lien Series 2020B-2 Class 2, 5.000%, 6/01/55 | | | |
| 1,975 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/22 at 100.00 | N/R (4) | 2,171,631 |
| | Revenue Bonds, Senior Lien Series 2007A-3, 6.250%, 6/01/37 (Pre-refunded 6/01/22) | | | |
| 1,500 | | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2011A, | 11/20 at 100.00 | A | 1,509,975 |
| | 5.750%, 11/15/21 | | | |
| 1,105 | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien | 2/23 at 100.00 | Aa3 (4) | 1,229,755 |
| | Series 2013A-1, 5.000%, 2/15/48 (Pre-refunded 2/15/23) | | | |
| 1,000 | | Ohio Water Development Authority, Pollution Control Revenue Bonds, FirstEnergy Nuclear | No Opt. Call | N/R | 1,250 |
| | Generating Corporation Project, Refunding Series 2005B, 4.000%, 1/01/34 (5) | | | |
| 6,170 | | Total Ohio | | | 5,547,451 |
| | Oklahoma – 0.2% | | | |
| 435 | | Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine | 8/28 at 100.00 | Baa3 | 505,231 |
| | Project, Series 2018B, 5.000%, 8/15/38 | | | |
| | Oregon – 2.2% | | | |
| 590 | | Beaverton School District 48J, Washington and Multnomah Counties, Oregon, General | 6/27 at 100.00 | AA+ | 733,606 |
| | Obligation Bonds, Convertible Deferred Interest Series 2017D, 5.000%, 6/15/36 | | | |
| 395 | | Beaverton, Oregon, Special Revenue Bonds, Series 2020A, 4.000%, 6/01/37 | 6/30 at 100.00 | Aa3 | 474,265 |
| 515 | | Clackamas County Hospital Facility Authority, Oregon, Senior Living Revenue Bonds, | No Opt. Call | N/R | 535,832 |
| | Willamette View Project, Series 2017A, 4.000%, 11/15/23 | | | |
| 500 | | Lake Oswego, Oregon, General Obligation Bonds, Series 2013, 5.000%, 6/01/26 | 6/23 at 100.00 | AAA | 562,620 |
| 750 | | Multnomah County Hospital Facilities Authority, Oregon, Revenue Bond, Terwilliger Plaza, | No Opt. Call | BBB | 782,737 |
| | Inc, Refunding Series 2012, 5.000%, 12/01/22 | | | |
| 1,365 | | Oregon Facilities Authority, Revenue Bonds, Reed College, Series 2017A, 4.000%, 7/01/41 | 7/27 at 100.00 | Aa2 | 1,555,199 |
| 1,000 | | Oregon Facilities Authority, Revenue Bonds, Willamette University, Refunding Series | 10/26 at 100.00 | A– | 1,130,570 |
| | 2016B, 5.000%, 10/01/40 | | | |
| 5,115 | | Total Oregon | | | 5,774,829 |
| | Pennsylvania – 1.5% | | | |
| 1,225 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, | 1/24 at 100.00 | A+ | 1,362,396 |
| | 5.000%, 1/01/37 | | | |
| 1,000 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, State System of | 6/26 at 100.00 | Aa3 | 1,197,570 |
| | Higher Education, Refunding Series 2016AT-1, 5.000%, 6/15/31 | | | |
| | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special | | | |
| | Revenue Bonds, Series 2010B-2: | | | |
| 555 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 559,429 |
| 295 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 297,354 |
| 640 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | A2 (4) | 645,158 |
| 3,715 | | Total Pennsylvania | | | 4,061,907 |
| | Puerto Rico – 1.3% | | | |
| | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, | | | |
| | Restructured 2018A-1: | | | |
| 1,500 | | 4.750%, 7/01/53 | 7/28 at 100.00 | N/R | 1,563,765 |
| 900 | | 5.000%, 7/01/58 | 7/28 at 100.00 | N/R | 953,631 |
| 1,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Taxable | 7/28 at 100.00 | N/R | 1,021,670 |
| | Restructured Cofina Project Series 2019A-2, 4.329%, 7/01/40 | | | |
| 3,400 | | Total Puerto Rico | | | 3,539,066 |
28
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Texas – 10.5% | | | |
| $ 2,795 | | Alamo Regional Mobility Authority, Texas, Vehicle Registration Fee Revenue Bonds, Senior | 6/25 at 100.00 | AA+ | $ 3,251,871 |
| | Lien Series 2016, 5.000%, 6/15/46 | | | |
| 250 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, | 1/21 at 100.00 | A– (4) | 253,608 |
| | 6.000%, 1/01/41 (Pre-refunded 1/01/21) | | | |
| 110 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, | 7/25 at 100.00 | A– | 126,701 |
| | 5.000%, 1/01/33 | | | |
| 5,565 | | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, First Tier | 10/23 at 100.00 | A+ (4) | 6,438,649 |
| | Series 2013A, 5.500%, 4/01/53 (Pre-refunded 10/01/23) | | | |
| 1,250 | | Harris County Flood Control District, Texas, Contract Tax Bonds, Refunding Series 2017A, | 10/27 at 100.00 | AAA | 1,466,137 |
| | 4.000%, 10/01/35 | | | |
| | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H: | | | |
| 480 | | 0.000%, 11/15/30– NPFG Insured (ETM) | No Opt. Call | Baa2 (4) | 419,741 |
| 2,935 | | 0.000%, 11/15/30– NPFG Insured | No Opt. Call | Baa2 | 2,076,395 |
| 4,230 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, | 11/24 at 52.47 | Baa2 | 1,951,764 |
| | 0.000%, 11/15/35– NPFG Insured | | | |
| 4,015 | | Harris County-Houston Sports Authority, Texas, Special Revenue Bonds, Refunding Senior | 11/30 at 61.17 | AA | 1,811,809 |
| | Lien Series 2001A, 0.000%, 11/15/38– NPFG Insured | | | |
| 2,260 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, | 11/20 at 100.00 | Baa1 | 2,264,882 |
| | Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 | | | |
| 150 | | Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, | 10/21 at 105.00 | BB– | 158,853 |
| | Senior Lien Series 2018, 4.625%, 10/01/31, 144A (AMT) | | | |
| 2,000 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier Capital | 1/25 at 100.00 | A+ | 2,414,240 |
| | Appreciation Series 2008I, 6.500%, 1/01/43 | | | |
| 5,000 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, | 12/22 at 100.00 | A3 | 5,418,450 |
| | Series 2012, 5.000%, 12/15/26 | | | |
| 31,040 | | Total Texas | | | 28,053,100 |
| | Virginia – 2.6% | | | |
| 960 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/29 at 100.00 | A– | 1,060,282 |
| | Dulles Metrorail & Capital improvement Projects, Refunding & Subordinate Lien Series 2019B, | | | |
| | 4.000%, 10/01/44 | | | |
| 2,000 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/28 at 100.00 | A– | 2,582,460 |
| | Dulles Metrorail Capital Appreciation, Second Senior Lien Series 2010B, 6.500%, 10/01/44 | | | |
| | Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River | | | |
| | Crossing, Opco LLC Project, Series 2012: | | | |
| 1,000 | | 5.250%, 1/01/32 (AMT) | 7/22 at 100.00 | BBB | 1,052,120 |
| 650 | | 6.000%, 1/01/37 (AMT) | 7/22 at 100.00 | BBB | 694,752 |
| 1,565 | | 5.500%, 1/01/42 (AMT) | 7/22 at 100.00 | BBB | 1,639,165 |
| 6,175 | | Total Virginia | | | 7,028,779 |
| | Washington – 3.9% | | | |
| 385 | | Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2019, 5.000%, | 4/29 at 100.00 | AA– | 456,075 |
| | 4/01/44 (AMT) | | | |
| 980 | | Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer | 1/21 at 100.00 | A+ (4) | 993,152 |
| | Research Center, Series 2011A, 5.625%, 1/01/35 (Pre-refunded 1/01/21) | | | |
| 1,000 | | Washington State Convention Center Public Facilities District, Lodging Tax Revenue | 7/28 at 100.00 | A1 | 1,110,260 |
| | Bonds, Series 2018, 5.000%, 7/01/58 | | | |
| 2,855 | | Washington State, General Obligation Bonds, Various Purpose Series 2015B, | 2/25 at 100.00 | Aaa | 3,365,816 |
| | 5.000%, 2/01/37 | | | |
| 2,060 | | Washington State, General Obligation Bonds, Various Purpose Series 2016A-1, | 8/25 at 100.00 | Aaa | 2,461,000 |
| | 5.000%, 8/01/39 | | | |
| 2,115 | | Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2003F, 0.000%, | No Opt. Call | Aaa | 1,971,243 |
| | 12/01/27– NPFG Insured | | | |
| 9,395 | | Total Washington | | | 10,357,546 |
29
| | |
| NXP | Nuveen Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | West Virginia – 0.6% | | | |
| $ 1,500 | | West Virginia Hospital Finance Authority, Hospital Revenue Bonds, West Virginia United | 6/23 at 100.00 | A | $ 1,630,860 |
| | Health System Obligated Group, Refunding & Improvement Series 2013A, 5.500%, 6/01/44 | | | |
| | Wisconsin – 1.3% | | | |
| 1,645 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Mercy Alliance, | 6/22 at 100.00 | A3 | 1,715,390 |
| | Inc, Series 2012, 5.000%, 6/01/39 | | | |
| 1,500 | | Wisconsin Health and Educational Facilities Authority, Wisconsin, Revenue Bonds, Medical | 11/26 at 100.00 | AA– | 1,767,195 |
| | College of Wisconsin, Inc, Series 2016, 5.000%, 12/01/41 | | | |
| 3,145 | | Total Wisconsin | | | 3,482,585 |
| $ 284,305 | | Total Municipal Bonds (cost $224,308,732) | | | 262,640,088 |
|
| Shares | | Description (1) | | | Value |
| | COMMON STOCKS – 0.3% | | | |
| | Electric Utilities – 0.3% | | | |
| 32,258 | | Energy Harbor Corp (7), (8) | | | $ 741,934 |
| | Total Common Stocks (cost $899,914) | | | 741,934 |
| | Total Long-Term Investments (cost $225,208,646) | | | 263,382,022 |
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | SHORT-TERM INVESTMENTS – 0.4% | | | |
| | MUNICIPAL BONDS – 0.4% | | | |
| | Florida – 0.4% | | | |
| $ 1,305 | | Florida Development Finance Corporation, Florida, Surface Transportation Facility Revenue Bonds, | 11/20 at 104.00 | N/R | $ 1,143,076 |
| | Virgin Trains USA Passenger Rail Project , Variable Rate Demand Obligations, Series 2019A, 6.250%, | | | |
| | 1/01/49 (AMT) (Mandatory Put 1/01/24), 144A (9) | | | |
| $ 1,305 | | Total Short-Term Investments (cost $1,305,000) | | | 1,143,076 |
| | Total Investments (cost $226,513,646) – 98.9% | | | 264,525,098 |
| | Other Assets Less Liabilities – 1.1% | | | 2,857,248 |
| | Net Assets Applicable to Common Shares – 100% | | | $ 267,382,346 |
| | |
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | 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. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
(5) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
(6) | Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period. |
(7) | Common Stock received as part of the bankruptcy settlement for Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2005B, 0.000%, 1/01/34. |
(8) | 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. |
(9) | Investment has a maturity of greater than one year, but has variable rate and/or demand features which qualify it as a short-term investment. The rate disclosed, as well as the reference rate and spread, where applicable, is that in effect as of the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
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. |
AMT | Alternative Minimum Tax |
ETM | Escrowed to maturity |
| See accompanying notes to financial statements. |
30
| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Portfolio of Investments September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 98.6% | | | |
| | MUNICIPAL BONDS – 98.3% | | | |
| | Alaska – 0.4% | | | |
| $ 1,000 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B3 | $ 1,000,300 |
| | Bonds, Series 2006A, 5.000%, 6/01/32 | | | |
| | Arizona – 4.8% | | | |
| 1,015 | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Series 2020B, | 7/30 at 100.00 | AA | 1,196,573 |
| | 4.000%, 7/01/47 | | | |
| 2,500 | | Arizona Health Facilities Authority, Hospital Revenue Bonds, Catholic Healthcare West, | 3/21 at 100.00 | BBB+ | 2,543,000 |
| | Series 2011B-1&2, 5.250%, 3/01/39 | | | |
| 95 | | Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, | No Opt. Call | BB+ | 95,197 |
| | Paradise Schools Projects, Series 2016, 2.875%, 7/01/21, 144A | | | |
| 1,000 | | Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, | 1/27 at 100.00 | AA– | 1,190,790 |
| | Refunding Series 2016A, 5.000%, 1/01/38 | | | |
| 1,950 | | McAllister Academic Village LLC, Arizona, Revenue Bonds, Arizona State University | 7/26 at 100.00 | AA– | 2,313,909 |
| | Hassayampa Academic Village Project, Refunding Series 2016, 5.000%, 7/01/37 | | | |
| 1,250 | | Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Junior Lien | 7/25 at 100.00 | A1 | 1,444,175 |
| | Series 2015A, 5.000%, 7/01/34 | | | |
| 1,160 | | Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Rowan University | 6/22 at 100.00 | A | 1,200,913 |
| | Project, Series 2012, 5.000%, 6/01/42 | | | |
| 2,250 | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy | No Opt. Call | A3 | 3,039,525 |
| | Inc Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 | | | |
| 11,220 | | Total Arizona | | | 13,024,082 |
| | California – 15.6% | | | |
| 11,000 | | Alhambra Unified School District, Los Angeles County, California, General Obligation | No Opt. Call | AA | 6,486,810 |
| | Bonds, Capital Appreciation Series 2009B, 0.000%, 8/01/41– AGC Insured | | | |
| 45 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, | 6/30 at 100.00 | BBB+ | 50,189 |
| | Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49 | | | |
| 2,440 | | Eureka Unified School District, Humboldt County, California, General Obligation Bonds, | No Opt. Call | AA | 2,266,004 |
| | Series 2002, 0.000%, 8/01/27– AGM Insured | | | |
| 3,290 | | Folsom Cordova Unified School District, Sacramento County, California, General | No Opt. Call | AA– | 3,217,916 |
| | Obligation Bonds, School Facilities Improvement District 4, Series 2007A, 0.000%, 10/01/24– | | | |
| | NPFG Insured | | | |
| 3,030 | | Grossmont Union High School District, San Diego County, California, General Obligation | No Opt. Call | Aa2 | 2,937,161 |
| | Bonds, Series 2006, 0.000%, 8/01/25– NPFG Insured | | | |
| 1,495 | | Huntington Beach Union High School District, Orange County, California, General | No Opt. Call | Aa2 | 1,177,238 |
| | Obligation Bonds, Series 2007, 0.000%, 8/01/33– FGIC Insured | | | |
| 1,160 | | Mount San Antonio Community College District, Los Angeles County, California, General | 8/35 at 100.00 | Aa1 | 1,245,295 |
| | Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/43 (6) | | | |
| 450 | | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, | No Opt. Call | A | 712,039 |
| | Series 2009C, 6.500%, 11/01/39 | | | |
| 1,195 | | Palmdale School District, Los Angeles County, California, General Obligation Bonds, | No Opt. Call | AA | 1,088,800 |
| | Series 2003, 0.000%, 8/01/28– AGM Insured | | | |
| 4,620 | | Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, | No Opt. Call | A2 | 4,439,173 |
| | Election of 2004, Series 2007A, 0.000%, 8/01/24– NPFG Insured | | | |
| 4,400 | | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community | No Opt. Call | AA– | 3,812,864 |
| | Development Project, Series 1999, 0.000%, 8/01/29– AMBAC Insured | | | |
| 2,500 | | Placentia-Yorba Linda Unified School District, Orange County, California, Certificates | No Opt. Call | A+ (4) | 1,994,600 |
| | of Participation, Series 2006, 0.000%, 10/01/34– FGIC Insured (ETM) | | | |
31
| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | California (continued) | | | |
| $ 2,755 | | Sacramento City Unified School District, Sacramento County, California, General | No Opt. Call | A2 | $ 2,622,705 |
| | Obligation Bonds, Series 2007, 0.000%, 7/01/25– AGM Insured | | | |
| 1,395 | | San Diego Association of Governments, California, South Bay Expressway Toll Revenue | 7/27 at 100.00 | A | 1,605,924 |
| | Bonds, First Senior Lien Series 2017A, 5.000%, 7/01/42 | | | |
| 1,305 | | San Diego County Regional Airport Authority, California, Airport Revenue Bonds, | 7/29 at 100.00 | A+ | 1,589,216 |
| | Subordinate Series 2019B, 5.000%, 7/01/39 (AMT) | | | |
| 6,025 | | Simi Valley Unified School District, Ventura County, California, General Obligation | No Opt. Call | AA | 5,194,092 |
| | Bonds, Series 2007C, 0.000%, 8/01/30 | | | |
| 2,080 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B– | 2,092,147 |
| | Bonds, Series 2005A-1, 5.500%, 6/01/45 | | | |
| 49,185 | | Total California | | | 42,532,173 |
| | Colorado – 8.4% | | | |
| 540 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, CommonSpirit Health, | 8/29 at 100.00 | BBB+ | 590,992 |
| | Series 2019A-2, 4.000%, 8/01/49 | | | |
| 1,580 | | Colorado School of Mines Board of Trustees, Golden, Colorado, Institutional Enterprise | 12/27 at 100.00 | A+ | 1,854,746 |
| | Revenue Bonds, Series 2017B, 5.000%, 12/01/47 | | | |
| 1,190 | | Colorado Springs, Colorado, Utilities System Revenue Bonds, Refunding Series 2020A, | 11/30 at 100.00 | AA+ | 1,435,711 |
| | 4.000%, 11/15/45 | | | |
| 445 | | Colorado State, Certificates of Participation, Rural Series 2020A, 4.000%, 12/15/38 | 12/30 at 100.00 | Aa2 | 534,877 |
| 1,935 | | Denver City and County, Colorado, Airport System Revenue Bonds, Subordinate Lien Series | 11/23 at 100.00 | A+ | 2,119,909 |
| | 2013B, 5.000%, 11/15/43 | | | |
| | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: | | | |
| 5,140 | | 0.000%, 9/01/24– NPFG Insured | No Opt. Call | A | 4,995,463 |
| 8,100 | | 0.000%, 9/01/29– NPFG Insured | No Opt. Call | A | 7,079,724 |
| 4,475 | | 0.000%, 9/01/33– NPFG Insured | No Opt. Call | A | 3,471,034 |
| 715 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2020A, | 9/30 at 100.00 | A | 939,310 |
| | 5.000%, 9/01/36 | | | |
| 24,120 | | Total Colorado | | | 23,021,766 |
| | Connecticut – 3.2% | | | |
| 705 | | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven | 1/24 at 100.00 | AA– | 733,299 |
| | Health Issue, Series 2014D, 1.800%, 7/01/49 (Mandatory Put 7/01/24) | | | |
| 2,600 | | Connecticut State, General Obligation Bonds, Green Series 2014G, 5.000%, 11/15/31 | 11/24 at 100.00 | A1 | 2,993,744 |
| 1,000 | | Connecticut State, General Obligation Bonds, Refunding Series 2012E, 5.000%, 9/15/32 | 9/22 at 100.00 | A1 | 1,072,540 |
| 1,000 | | Connecticut State, General Obligation Bonds, Refunding Series 2018C, 5.000%, 6/15/26 | No Opt. Call | A1 | 1,236,090 |
| 2,490 | | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes | 10/23 at 100.00 | A+ | 2,790,742 |
| | Series 2013A, 5.000%, 10/01/33 | | | |
| 7,795 | | Total Connecticut | | | 8,826,415 |
| | District of Columbia – 0.3% | | | |
| 600 | | Washington Metropolitan Area Transit Authority, District of Columbia, Dedicated Revenue | 7/30 at 100.00 | AA | 698,928 |
| | Bonds, Series 2020A, 4.000%, 7/15/45 | | | |
| | Florida – 3.4% | | | |
| 1,040 | | Broward County, Florida, Airport System Revenue Bonds, Series 2017, 5.000%, | 10/27 at 100.00 | A1 | 1,201,897 |
| | 10/01/47 (AMT) | | | |
| 1,155 | | Greater Orlando Aviation Authority, Florida, Orlando Airport Facilities Revenue Bonds, | 10/27 at 100.00 | A+ | 1,330,802 |
| | Priority Subordinated Series 2017, 5.000%, 10/01/47 (AMT) | | | |
| 1,500 | | Lakeland, Florida, Hospital System Revenue Bonds, Lakeland Regional Health, Series 2015, | 11/24 at 100.00 | A2 | 1,662,450 |
| | 5.000%, 11/15/45 | | | |
| 2,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Refunding Series 2019A, 5.000%, | 10/29 at 100.00 | A | 2,368,860 |
| | 10/01/49 (AMT) | | | |
| 2,000 | | Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program, | 7/25 at 100.00 | AA | 2,428,040 |
| | Series 2013A, 5.000%, 7/01/30 | | | |
32
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Florida (continued) | | | |
| $ 205 | | Tampa, Florida, Revenue Bonds, H Lee Moffitt Cancer Center and Research Institute, | 7/30 at 100.00 | A2 | $ 229,682 |
| | Series 2020B, 4.000%, 7/01/45 | | | |
| 7,900 | | Total Florida | | | 9,221,731 |
| | Georgia – 0.6% | | | |
| 1,330 | | Brookhaven Development Authority, Georgia, Revenue Bonds, Children’s Healthcare of | 7/29 at 100.00 | AA+ | 1,525,603 |
| | Atlanta, Inc Project, Series 2019A, 4.000%, 7/01/44 | | | |
| | Guam – 2.4% | | | |
| 3,000 | | Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, | 11/25 at 100.00 | BB | 3,262,110 |
| | 5.000%, 11/15/39 | | | |
| 1,675 | | Government of Guam, Hotel Occupancy Tax Revenue Bonds, Series 2011A, 6.000%, 11/01/26 | 5/21 at 100.00 | BB | 1,690,326 |
| 1,460 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, | 7/26 at 100.00 | A– | 1,643,712 |
| | Series 2016, 5.000%, 1/01/46 | | | |
| 6,135 | | Total Guam | | | 6,596,148 |
| | Idaho – 1.6% | | | |
| 4,000 | | Idaho Health Facilities Authority, Revenue Bonds, Saint Luke’s Health System Project, | 3/24 at 100.00 | A– | 4,385,000 |
| | Series 2014A, 5.000%, 3/01/44 | | | |
| | Illinois – 9.8% | | | |
| 1,615 | | Board of Trustees of Southern Illinois University, Housing and Auxiliary Facilities | No Opt. Call | Baa2 | 1,525,222 |
| | System Revenue Bonds, Series 1999A, 0.000%, 4/01/23– NPFG Insured | | | |
| 750 | | Chicago Board of Education, Illinois, Dedicated Capital Improvement Tax Revenue Bonds, | 4/27 at 100.00 | A– | 868,717 |
| | Series 2016, 6.000%, 4/01/46 | | | |
| 735 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues | 12/21 at 100.00 | BB | 742,438 |
| | Series 2011A, 5.000%, 12/01/41 | | | |
| 760 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB | 843,760 |
| | Refunding Series 2017C, 5.000%, 12/01/30 | | | |
| 365 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/26 at 100.00 | BB | 427,320 |
| | Series 2016B, 6.500%, 12/01/46 | | | |
| 2,245 | | Illinois Finance Authority, Revenue Bonds, Northwestern Memorial HealthCare, Series | 8/22 at 100.00 | AA+ | 2,368,902 |
| | 2013, 5.000%, 8/15/43 | | | |
| 2,070 | | Illinois State, General Obligation Bonds, Refunding September Series 2018B, 5.000%, 10/01/23 | No Opt. Call | BBB– | 2,194,366 |
| 2,500 | | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Senior Lien Series 2019A, | 7/29 at 100.00 | AA– | 2,874,825 |
| | 4.000%, 1/01/39 | | | |
| | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place | | | |
| | Expansion Project, Series 2002A: | | | |
| 6,350 | | 0.000%, 12/15/31– NPFG Insured | No Opt. Call | BBB | 4,465,701 |
| 1,350 | | 0.000%, 6/15/35– NPFG Insured | No Opt. Call | BBB | 815,198 |
| 5,000 | | 0.000%, 12/15/36– NPFG Insured | No Opt. Call | BBB | 2,829,700 |
| 9,370 | | 0.000%, 6/15/39– NPFG Insured | No Opt. Call | BBB | 4,770,829 |
| 1,825 | | Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28 | 3/25 at 100.00 | A | 2,155,434 |
| 34,935 | | Total Illinois | | | 26,882,412 |
| | Indiana – 2.4% | | | |
| 1,600 | | Indiana Bond Bank, Special Program Bonds, Carmel Junior Waterworks Project, Series | No Opt. Call | AA | 1,337,760 |
| | 2008B, 0.000%, 6/01/30– AGM Insured | | | |
| 2,040 | | Indiana Finance Authority, Hospital Revenue Bonds, Indiana Unversity Health Obligation | 6/25 at 100.00 | AA | 2,330,720 |
| | Group, Refunding 2015A, 5.000%, 12/01/40 | | | |
| 2,500 | | Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, | 10/24 at 100.00 | AA | 2,863,375 |
| | Series 2015A, 5.000%, 10/01/45 | | | |
| 6,140 | | Total Indiana | | | 6,531,855 |
33
| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Iowa – 1.6% | | | |
| $ 710 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 11/20 at 104.00 | BB– | $ 739,195 |
| | Company Project, Series 2016, 5.875%, 12/01/26, 144A | | | |
| 830 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/22 at 105.00 | BB– | 877,601 |
| | Company Project, Series 2018B, 5.250%, 12/01/50 (Mandatory Put 12/01/37) | | | |
| 1,645 | | Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, | 11/20 at 100.00 | B– | 1,669,231 |
| | 5.375%, 6/01/38 | | | |
| 1,000 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, | 11/20 at 100.00 | B– | 1,014,730 |
| | 5.600%, 6/01/34 | | | |
| 4,185 | | Total Iowa | | | 4,300,757 |
| | Kentucky – 1.3% | | | |
| 2,500 | | Kentucky Economic Development Finance Authority, Hospital Revenue Bonds, Baptist | 8/21 at 100.00 | A2 | 2,564,125 |
| | Healthcare System Obligated Group, Series 2011, 5.250%, 8/15/46 | | | |
| 805 | | Kentucky Public Transportation Infrastructure Authority, First Tier Toll Revenue Bonds, | 7/31 at 100.00 | Baa3 | 869,923 |
| | Downtown Crossing Project, Convertible Capital Appreciation Series 2013C, 0.000%, 7/01/43 (6) | | | |
| 3,305 | | Total Kentucky | | | 3,434,048 |
| | Louisiana – 0.8% | | | |
| 1,870 | | Jefferson Sales Tax District, Jefferson Parish, Louisiana, Special Sales Tax Revenue | 12/27 at 100.00 | AA | 2,245,496 |
| | Bonds, Series 2017B, 5.000%, 12/01/42– AGM Insured | | | |
| | Maryland – 0.4% | | | |
| 1,000 | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins | 7/22 at 100.00 | Aa2 (4) | 1,084,410 |
| | Health System Obligated Group Issue, Series 2012B, 5.000%, 7/01/27 (Pre-refunded 7/01/22) | | | |
| | Massachusetts – 5.6% | | | |
| 2,200 | | Massachusetts Bay Transportation Authority, Assessment Bonds, Series 2012A, | 7/22 at 100.00 | AAA | 2,362,426 |
| | 5.000%, 7/01/41 | | | |
| 2,000 | | Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Series | 7/28 at 100.00 | A | 2,397,740 |
| | 2018J-2, 5.000%, 7/01/43 | | | |
| 1,675 | | Massachusetts Development Finance Agency, Revenue Bonds, Olin College, Series 2013E, | 11/23 at 100.00 | A+ | 1,825,767 |
| | 5.000%, 11/01/43 | | | |
| 2,250 | | Massachusetts Development Finance Agency, Revenue Bonds, Partners HealthCare System, | 7/23 at 100.00 | AA– (4) | 2,547,720 |
| | Series 2014M-4, 5.000%, 7/01/44 (Pre-refunded 7/01/23) | | | |
| 400 | | Massachusetts Development Finance Agency, Revenue Bonds, UMass Memorial Health Care | 7/27 at 100.00 | A– | 427,536 |
| | Obligated Group Issue, Series 2017L, 3.625%, 7/01/37 | | | |
| 2,100 | | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Subordinated | 2/26 at 100.00 | AA+ | 2,491,377 |
| | Series 2019A, 5.000%, 2/15/49 | | | |
| 2,115 | | Massachusetts State, Federal Highway Grant Anticipation Notes, Accelerated Bridge | 6/27 at 100.00 | AA+ | 2,588,252 |
| | Program, Series 2017A, 5.000%, 6/01/42 | | | |
| 730 | | Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Series 2011C, | 8/21 at 100.00 | AA+ (4) | 761,018 |
| | 5.250%, 8/01/42 (Pre-refunded 8/01/21) | | | |
| 13,470 | | Total Massachusetts | | | 15,401,836 |
| | Michigan – 1.2% | | | |
| 355 | | Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds, | 7/22 at 100.00 | AA– (4) | 386,513 |
| | Refunding Senior Lien Series 2012A, 5.250%, 7/01/39 (Pre-refunded 7/01/22) | | | |
| 385 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series | 10/25 at 100.00 | Aa2 | 457,885 |
| | 2015-I, 5.000%, 4/15/38 | | | |
| 2,000 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series | 10/26 at 100.00 | Aa2 | 2,434,200 |
| | 2016-I, 5.000%, 4/15/35 | | | |
| 2,740 | | Total Michigan | | | 3,278,598 |
34
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Nebraska – 0.7% | | | |
| $ 545 | | Douglas County Hospital Authority 3, Nebraska, Health Facilities Revenue Bonds, Nebraska | 11/25 at 100.00 | A | $ 595,739 |
| | Methodist Health System, Refunding Series 2015, 4.125%, 11/01/36 | | | |
| 305 | | Madison County Hospital Authority 1, Nebraska, Hospital Revenue Bonds, Faith Regional | 7/25 at 100.00 | BBB | 351,351 |
| | Health Services Project, Series 2018, 5.000%, 7/01/27 | | | |
| 1,000 | | Nebraska Public Power District, General Revenue Bonds, Series 2015A-2, 5.000%, 1/01/40 | 1/22 at 100.00 | A+ | 1,046,970 |
| 1,850 | | Total Nebraska | | | 1,994,060 |
| | Nevada – 1.7% | | | |
| 990 | | Carson City, Nevada, Hospital Revenue Bonds, Carson Tahoe Regional Healthcare Project, | 9/27 at 100.00 | A– | 1,145,103 |
| | Series 2017A, 5.000%, 9/01/37 | | | |
| 3,000 | | Las Vegas Valley Water District, Nevada, General Obligation Bonds, Refunding Series | 12/24 at 100.00 | Aa1 | 3,503,280 |
| | 2015, 5.000%, 6/01/34 | | | |
| 3,990 | | Total Nevada | | | 4,648,383 |
| | New Jersey – 2.5% | | | |
| 2,000 | | New Jersey Economic Development Authority, School Facilities Construction Bonds, | 12/26 at 100.00 | BBB+ | 2,345,760 |
| | Refunding Series 2016BBB, 5.500%, 6/15/31 | | | |
| 2,165 | | New Jersey Economic Development Authority, School Facilities Construction Financing | 3/21 at 100.00 | BBB+ | 2,198,016 |
| | Program Bonds, Refunding Series 2011GG, 5.000%, 9/01/22 | | | |
| 2,000 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series | 6/25 at 100.00 | BBB+ | 2,260,660 |
| | 2015AA, 5.250%, 6/15/29 | | | |
| 6,165 | | Total New Jersey | | | 6,804,436 |
| | New Mexico – 1.1% | | | |
| 1,000 | | Albuquerque, New Mexico, Refuse Removal and Disposal Revenue Bonds, Series 2020, | 7/30 at 100.00 | AA | 1,176,870 |
| | 4.000%, 7/01/43 | | | |
| 800 | | New Mexico Hospital Equipment Loan Council, First Mortgage Revenue Bonds, Haverland | 7/22 at 100.00 | BBB– | 808,608 |
| | Carter Lifestyle Group, Series 2013, 5.000%, 7/01/42 | | | |
| 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, | 10/20 at 100.00 | N/R | 1,020,840 |
| | Series 2007A, 5.250%, 9/01/42 (AMT) | | | |
| 2,800 | | Total New Mexico | | | 3,006,318 |
| | New York – 1.6% | | | |
| | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 | | | |
| | Series 2011A: | | | |
| 25 | | 5.250%, 2/15/47 (Pre-refunded 2/15/21) | 2/21 at 100.00 | Aa2 (4) | 25,475 |
| 475 | | 5.250%, 2/15/47 | 2/21 at 100.00 | Aa2 | 482,828 |
| 1,000 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Green | No Opt. Call | A+ | 1,047,770 |
| | Climate Bond Certified Series 2019A-1, 5.000%, 11/15/48 (Mandatory Put 11/15/24) | | | |
| 1,250 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding | 11/22 at 100.00 | A+ | 1,284,337 |
| | Series 2012F, 5.000%, 11/15/26 | | | |
| 1,135 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air | 12/20 at 100.00 | Baa1 | 1,144,897 |
| | Terminal LLC Project, Eigth Series 2010, 6.000%, 12/01/42 | | | |
| 500 | | TSASC Inc, New York, Tobacco Settlement Asset-Backed Bonds, Fiscal 2017 Series B, | No Opt. Call | B– | 512,690 |
| | 5.000%, 6/01/24 | | | |
| 4,385 | | Total New York | | | 4,497,997 |
| | Ohio – 0.7% | | | |
| 330 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | BBB+ | 360,974 |
| | Revenue Bonds, Refunding Senior Lien Series 2020A-2 Class 1, 4.000%, 6/01/48 | | | |
| 315 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | N/R | 335,346 |
| | Revenue Bonds, Refunding Senior Lien Series 2020B-2 Class 2, 5.000%, 6/01/55 | | | |
| 1,105 | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien | 2/23 at 100.00 | Aa3 (4) | 1,229,754 |
| | Series 2013A-1, 5.000%, 2/15/48 (Pre-refunded 2/15/23) | | | |
35
| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Ohio (continued) | | | |
| $ 1,000 | | Ohio Water Development Authority, Pollution Control Revenue Bonds, FirstEnergy Nuclear | No Opt. Call | N/R | $ 1,250 |
| | Generating Corporation Project, Refunding Series 2005B, 4.000%, 1/01/34 (5) | | | |
| 2,750 | | Total Ohio | | | 1,927,324 |
| | Oklahoma – 0.2% | | | |
| 450 | | Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine | 8/28 at 100.00 | Baa3 | 522,653 |
| | Project, Series 2018B, 5.000%, 8/15/38 | | | |
| | Oregon – 1.4% | | | |
| 915 | | Beaverton School District 48J, Washington and Multnomah Counties, Oregon, General | 6/27 at 100.00 | AA+ | 1,137,711 |
| | Obligation Bonds, Convertible Deferred Interest Series 2017D, 5.000%, 6/15/36 | | | |
| 605 | | Beaverton, Oregon, Special Revenue Bonds, Series 2020A, 4.000%, 6/01/37 | 6/30 at 100.00 | Aa3 | 726,405 |
| 60 | | Clackamas Community College District, Oregon, General Obligation Bonds, Deferred | 6/27 at 100.00 | Aa1 | 72,572 |
| | Interest Series 2017A, 5.000%, 6/15/40 (6) | | | |
| 500 | | Lake Oswego, Oregon, General Obligation Bonds, Series 2013, 5.000%, 6/01/26 | 6/23 at 100.00 | AAA | 562,620 |
| 1,090 | | Oregon Facilities Authority, Revenue Bonds, Reed College, Series 2017A, 4.000%, 7/01/41 | 7/27 at 100.00 | Aa2 | 1,241,881 |
| 3,170 | | Total Oregon | | | 3,741,189 |
| | Pennsylvania – 3.0% | | | |
| 1,255 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, | 1/24 at 100.00 | A+ | 1,395,761 |
| | 5.000%, 1/01/37 | | | |
| 1,500 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, State System of | 6/26 at 100.00 | Aa3 | 1,796,355 |
| | Higher Education, Refunding Series 2016AT-1, 5.000%, 6/15/31 | | | |
| | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special | | | |
| | Revenue Bonds, Series 2010B-2: | | | |
| 555 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 559,429 |
| 300 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 302,394 |
| 645 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | A2 (4) | 650,199 |
| 2,970 | | Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2015A, | 7/24 at 100.00 | A+ | 3,374,068�� |
| | 5.000%, 7/01/40 | | | |
| 7,225 | | Total Pennsylvania | | | 8,078,206 |
| | Puerto Rico – 1.9% | | | |
| 1,035 | | Puerto Rico Housing Finance Authority, Capital Fund Program Revenue Bonds, Series 2003, | 11/20 at 100.00 | AA– | 1,038,954 |
| | 5.000%, 12/01/20 | | | |
| | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, | | | |
| | Restructured 2018A-1: | | | |
| 1,000 | | 4.750%, 7/01/53 | 7/28 at 100.00 | N/R | 1,042,510 |
| 1,080 | | 5.000%, 7/01/58 | 7/28 at 100.00 | N/R | 1,144,357 |
| 2,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Taxable | 7/28 at 100.00 | N/R | 2,043,340 |
| | Restructured Cofina Project Series 2019A-2, 4.329%, 7/01/40 | | | |
| 5,115 | | Total Puerto Rico | | | 5,269,161 |
| | South Carolina – 0.6% | | | |
| 1,500 | | Richland County School District 2, South Carolina, General Obligation Bonds, Refunding | 5/23 at 100.00 | Aa1 | 1,590,780 |
| | Series 2012B, 3.050%, 5/01/27 | | | |
| | South Dakota – 0.3% | | | |
| 600 | | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, | 11/25 at 100.00 | A+ | 703,884 |
| | Series 2015, 5.000%, 11/01/35 | | | |
| | Texas – 9.7% | | | |
| 1,880 | | Alamo Regional Mobility Authority, Texas, Vehicle Registration Fee Revenue Bonds, Senior | 6/25 at 100.00 | AA+ | 2,187,305 |
| | Lien Series 2016, 5.000%, 6/15/46 | | | |
| 250 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, | 1/21 at 100.00 | A– (4) | 253,608 |
| | 6.000%, 1/01/41 (Pre-refunded 1/01/21) | | | |
| 240 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, | 7/25 at 100.00 | A– | 275,808 |
| | 5.000%, 1/01/35 | | | |
36
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Texas (continued) | | | |
| $ 5,560 | | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, Frst Tier | 10/23 at 100.00 | A+ (4) | $ 6,432,864 |
| | Series 2013A, 5.500%, 4/01/53 (Pre-refunded 10/01/23) | | | |
| 1,160 | | Harris County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, | 6/25 at 100.00 | AA | 1,331,808 |
| | Houston Methodist Hospital System, Series 2015, 5.000%, 12/01/45 | | | |
| 1,250 | | Harris County Flood Control District, Texas, Contract Tax Bonds, Refunding Series 2017A, | 10/27 at 100.00 | AAA | 1,466,137 |
| | 4.000%, 10/01/35 | | | |
| | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H: | | | |
| 110 | | 0.000%, 11/15/24– NPFG Insured (ETM) | No Opt. Call | Baa2 (4) | 107,451 |
| 520 | | 0.000%, 11/15/24– NPFG Insured | No Opt. Call | Baa2 | 466,482 |
| 12,480 | | 0.000%, 11/15/41– NPFG Insured | 11/31 at 53.78 | Baa2 | 4,390,339 |
| 575 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and | No Opt. Call | A | 547,630 |
| | Entertainment Project, Series 2001B, 0.000%, 9/01/24– AMBAC Insured | | | |
| 2,255 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, | 11/20 at 100.00 | Baa1 | 2,259,871 |
| | Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 | | | |
| 155 | | Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, | 10/21 at 105.00 | BB– | 164,148 |
| | Senior Lien Series 2018, 4.625%, 10/01/31, 144A (AMT) | | | |
| 1,025 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2015B, | 1/23 at 100.00 | A+ | 1,107,574 |
| | 5.000%, 1/01/40 | | | |
| 200 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital | 5/26 at 100.00 | AA– | 219,724 |
| | Revenue Bonds, Scott & White Healthcare Project, Series 2016A, 4.000%, 11/15/42 | | | |
| 5,000 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, | 12/22 at 100.00 | A3 | 5,418,450 |
| | Series 2012, 5.000%, 12/15/26 | | | |
| 32,660 | | Total Texas | | | 26,629,199 |
| | Virginia – 2.0% | | | |
| 985 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/29 at 100.00 | A– | 1,087,893 |
| | Dulles Metrorail & Capital improvement Projects, Refunding & Subordinate Lien Series 2019B, | | | |
| | 4.000%, 10/01/44 | | | |
| 1,500 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/26 at 100.00 | AA | 1,884,525 |
| | Dulles Metrorail & Capital improvement Projects, Second Senior Lien Series 2009C, 6.500%, | | | |
| | 10/01/41– AGC Insured | | | |
| | Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River | | | |
| | Crossing, Opco LLC Project, Series 2012: | | | |
| 1,000 | | 5.250%, 1/01/32 (AMT) | 7/22 at 100.00 | BBB | 1,052,120 |
| 410 | | 6.000%, 1/01/37 (AMT) | 7/22 at 100.00 | BBB | 438,229 |
| 1,010 | | 5.500%, 1/01/42 (AMT) | 7/22 at 100.00 | BBB | 1,057,864 |
| 4,905 | | Total Virginia | | | 5,520,631 |
| | Washington – 4.7% | | | |
| 395 | | Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2019, 5.000%, | 4/29 at 100.00 | AA– | 467,921 |
| | 4/01/44 (AMT) | | | |
| 860 | | Snohomish County School District 306 Lakewood, Washington, General Obligation Bonds, | 6/24 at 100.00 | Aaa | 1,006,991 |
| | Series 2014, 5.000%, 12/01/28 | | | |
| 4,000 | | Washington Health Care Facilities Authority, Revenue Bonds, Catholic Health Initiative, | 1/23 at 100.00 | BBB+ | 4,379,640 |
| | Series 2013A, 5.750%, 1/01/45 | | | |
| 990 | | Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer | 1/21 at 100.00 | A+ (4) | 1,003,286 |
| | Research Center, Series 2011A, 5.625%, 1/01/35 (Pre-refunded 1/01/21) | | | |
| 1,500 | | Washington State Convention Center Public Facilities District, Lodging Tax Revenue | 7/28 at 100.00 | A1 | 1,665,390 |
| | Bonds, Series 2018, 5.000%, 7/01/58 | | | |
| 1,130 | | Washington State, General Obligation Bonds, Various Purpose Series 2015B, | 2/25 at 100.00 | Aaa | 1,332,179 |
| | 5.000%, 2/01/37 | | | |
| 2,535 | | Washington State, General Obligation Bonds, Various Purpose Series 2017A, | 8/26 at 100.00 | Aaa | 3,111,434 |
| | 5.000%, 8/01/38 | | | |
| 11,410 | | Total Washington | | | 12,966,841 |
37
| | |
| NXQ | Nuveen Select Tax-Free Income Portfolio 2 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Wisconsin – 2.4% | | | |
| $ 1,645 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Mercy Alliance, | 6/22 at 100.00 | A3 | $ 1,715,390 |
| | Inc, Series 2012, 5.000%, 6/01/39 | | | |
| 2,000 | | Wisconsin Health and Educational Facilities Authority, Revenues Bonds, Gundersen | 10/21 at 100.00 | AA– | 2,066,820 |
| | Lutheran, Series 2011A, 5.250%, 10/15/39 | | | |
| 2,355 | | Wisconsin Health and Educational Facilities Authority, Wisconsin, Revenue Bonds, Medical | 11/26 at 100.00 | AA– | 2,774,497 |
| | College of Wisconsin, Inc, Series 2016, 5.000%, 12/01/41 | | | |
| 6,000 | | Total Wisconsin | | | 6,556,707 |
| $ 275,905 | | Total Municipal Bonds (cost $234,327,048) | | | 268,449,327 |
|
| Shares | | Description (1) | | | Value |
| | COMMON STOCKS – 0.3% | | | |
| | Electric Utilities – 0.3% | | | |
| 32,258 | | Energy Harbor Corp (7), (8) | | | $ 741,934 |
| | Total Common Stocks (cost $899,914) | | | 741,934 |
| | Total Long-Term Investments (cost $235,226,962) | | | 269,191,261 |
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | SHORT-TERM INVESTMENTS – 0.4% | | | |
| | MUNICIPAL BONDS – 0.4% | | | |
| | Florida – 0.4% | | | |
| $ 1,345 | | Florida Development Finance Corporation, Florida, Surface Transportation Facility Revenue Bonds, | 11/20 at 104.00 | N/R | $ 1,178,112 |
| | Virgin Trains USA Passenger Rail Project , Variable Rate Demand Obligations, Series 2019A, 6.250%, | | | |
| | 1/01/49 (AMT) (Mandatory Put 1/01/24), 144A (9) | | | |
| $ 1,345 | | Total Short-Term Investments (cost $1,345,000) | | | 1,178,112 |
| | Total Investments (cost $236,571,962) – 99.0% | | | 270,369,373 |
| | Other Assets Less Liabilities – 1.0% | | | 2,640,761 |
| | Net Assets Applicable to Common Shares – 100% | | | $ 273,010,134 |
| | |
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | 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. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
(5) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
(6) | Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period. |
(7) | Common Stock received as part of the bankruptcy settlement for Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2005B, 0.000%, 1/01/34. |
(8) | 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. |
(9) | Investment has a maturity of greater than one year, but has variable rate and/or demand features which qualify it as a short-term investment. The rate disclosed, as well as the reference rate and spread, where applicable, is that in effect as of the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
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. |
AMT | Alternative Minimum Tax |
ETM | Escrowed to maturity |
| See accompanying notes to financial statements. |
38
| | |
| NXR | Nuveen Select Tax-Free Income Portfolio 3 Portfolio of Investments September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 98.5% | | | |
| | MUNICIPAL BONDS – 98.1% | | | |
| | Alabama – 0.6% | | | |
| $ 1,170 | | Birmingham, Alabama, General Obligation Convertable Capital Appreciation Bonds, Series | 3/23 at 100.00 | AA | $ 1,292,534 |
| | 2013A, 5.000%, 3/01/32 | | | |
| | Alaska – 1.2% | | | |
| 2,675 | | Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B3 | 2,675,803 |
| | Bonds, Series 2006A, 5.000%, 6/01/32 | | | |
| | Arizona – 1.0% | | | |
| 1,950 | | Glendale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Subordinate | 1/23 at 100.00 | AA | 2,063,861 |
| | Series 2012C, 4.000%, 7/01/38 | | | |
| 75 | | Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, | No Opt. Call | BB+ | 75,155 |
| | Paradise Schools Projects, Series 2016, 2.875%, 7/01/21, 144A | | | |
| 2,025 | | Total Arizona | | | 2,139,016 |
| | California – 25.2% | | | |
| | Anaheim Public Financing Authority, California, Lease Revenue Bonds, Public Improvement | | | |
| | Project, Series 1997C: | | | |
| 6,740 | | 0.000%, 9/01/35– AGM Insured (ETM) | No Opt. Call | AA (4) | 5,275,061 |
| 5,760 | | 0.000%, 9/01/35– AGM Insured | No Opt. Call | AA | 4,118,054 |
| 35 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, | 6/30 at 100.00 | BBB+ | 39,036 |
| | Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49 | | | |
| 925 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, | 11/20 at 100.00 | BB+ | 928,497 |
| | Sonoma County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26 | | | |
| 100 | | California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled | 11/20 at 100.00 | Baa1 | 100,368 |
| | Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 | | | |
| 2,275 | | Folsom Cordova Unified School District, Sacramento County, California, General | No Opt. Call | AA– | 2,055,326 |
| | Obligation Bonds, School Facilities Improvement District 4, Series 2007A, 0.000%, 10/01/28– | | | |
| | NPFG Insured | | | |
| 3,370 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | No Opt. Call | Aa3 | 3,025,889 |
| | Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28– AMBAC Insured | | | |
| 4,055 | | Kern Community College District, California, General Obligation Bonds, Series 2003A, | No Opt. Call | Aa2 | 3,703,269 |
| | 0.000%, 3/01/28– FGIC Insured | | | |
| 1,160 | | Mount San Antonio Community College District, Los Angeles County, California, General | 8/35 at 100.00 | Aa1 | 1,245,295 |
| | Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/43 (6) | | | |
| 11,985 | | Norwalk La Mirada Unified School District, Los Angeles County, California, General | No Opt. Call | AA | 9,767,535 |
| | Obligation Bonds, Election 2002, Series 2007C, 0.000%, 8/01/32– AGM Insured | | | |
| 3,000 | | Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, | No Opt. Call | A2 | 2,836,260 |
| | Election of 2004, Series 2007A, 0.000%, 8/01/25– NPFG Insured | | | |
| 8,040 | | Placentia-Yorba Linda Unified School District, Orange County, California, Certificates | No Opt. Call | A+ (4) | 6,414,634 |
| | of Participation, Series 2006, 0.000%, 10/01/34– FGIC Insured (ETM) | | | |
| 1,500 | | Placer Union High School District, Placer County, California, General Obligation Bonds, | No Opt. Call | AA | 1,219,605 |
| | Series 2004C, 0.000%, 8/01/32– AGM Insured | | | |
| 8,000 | | Poway Unified School District, San Diego County, California, General Obligation Bonds, | No Opt. Call | AA– | 6,496,960 |
| | School Facilities Improvement District 2007-1, Election 2008 Series 2009A, 0.000%, 8/01/32 | | | |
| 3,940 | | Rancho Mirage Redevelopment Agency, California, Tax Allocation Bonds, Combined | No Opt. Call | A+ | 2,886,326 |
| | Whitewater and 1984 Project Areas, Series 2003A, 0.000%, 4/01/35 – NPFG Insured | | | |
| 765 | | San Diego Association of Governments, California, South Bay Expressway Toll Revenue | 7/27 at 100.00 | A | 880,668 |
| | Bonds, First Senior Lien Series 2017A, 5.000%, 7/01/42 | | | |
39
| | |
| NXR | Nuveen Select Tax-Free Income Portfolio 3 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | California (continued) | | | |
| $ 535 | | San Diego County Regional Airport Authority, California, Airport Revenue Bonds, | 7/29 at 100.00 | A+ | $ 653,470 |
| | Subordinate Series 2019B, 5.000%, 7/01/38 (AMT) | | | |
| 2,525 | | San Francisco City and County Public Utilities Commission, California, Water Revenue | 11/24 at 100.00 | Aa2 | 2,927,712 |
| | Bonds, Non-WSIP, Series 2017A, 5.000%, 11/01/42 | | | |
| 64,710 | | Total California | | | 54,573,965 |
| | Colorado – 2.9% | | | |
| 500 | | Centerra Metropolitan District 1, Loveland, Colorado, Special Revenue Bonds, Refunding & | No Opt. Call | N/R | 517,695 |
| | Improvement Series 2017, 5.000%, 12/01/22, 144A | | | |
| 790 | | Colorado School of Mines Board of Trustees, Golden, Colorado, Institutional Enterprise | 12/27 at 100.00 | A+ | 927,373 |
| | Revenue Bonds, Series 2017B, 5.000%, 12/01/47 | | | |
| 1,935 | | Denver City and County, Colorado, Airport System Revenue Bonds, Subordinate Lien Series | 11/23 at 100.00 | A+ | 2,119,908 |
| | 2013B, 5.000%, 11/15/43 | | | |
| 1,295 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, | No Opt. Call | A | 1,036,855 |
| | 9/01/32– NPFG Insured | | | |
| 490 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2020A, | 9/24 at 100.00 | A | 558,174 |
| | 5.000%, 9/01/40 | | | |
| 1,000 | | Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported | 12/25 at 100.00 | A | 1,174,370 |
| | Revenue Bonds, Refunding Series 2015A, 5.000%, 12/01/33 | | | |
| 6,010 | | Total Colorado | | | 6,334,375 |
| | Connecticut – 3.7% | | | |
| 2,290 | | Connecticut State, General Obligation Bonds, Refunding Series 2012E, 5.000%, 9/15/32 | 9/22 at 100.00 | A1 | 2,456,117 |
| 1,500 | | Connecticut State, General Obligation Bonds, Refunding Series 2018C, 5.000%, 6/15/26 | No Opt. Call | A1 | 1,854,135 |
| 1,750 | | Connecticut State, General Obligation Bonds, Series 2012B, 5.000%, 4/15/21 | No Opt. Call | A1 | 1,795,080 |
| 1,615 | | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes | 10/23 at 100.00 | A+ | 1,821,849 |
| | Series 2013A, 5.000%, 10/01/30 | | | |
| 7,155 | | Total Connecticut | | | 7,927,181 |
| | District of Columbia – 1.5% | | | |
| 2,500 | | Washington Metropolitan Area Transit Authority, District of Columbia, Dedicated Revenue | 7/30 at 100.00 | AA | 3,169,950 |
| | Bonds, Series 2020A, 5.000%, 7/15/45 | | | |
| | Florida – 1.3% | | | |
| 390 | | Greater Orlando Aviation Authority, Florida, Orlando Airport Facilities Revenue Bonds, | 10/27 at 100.00 | A+ | 449,362 |
| | Priority Subordinated Series 2017, 5.000%, 10/01/47 (AMT) | | | |
| 2,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Refunding Series 2019A, 5.000%, | 10/29 at 100.00 | A | 2,368,860 |
| | 10/01/49 (AMT) | | | |
| 2,390 | | Total Florida | | | 2,818,222 |
| | Georgia – 0.5% | | | |
| 1,035 | | Brookhaven Development Authority, Georgia, Revenue Bonds, Children’s Healthcare of | 7/29 at 100.00 | AA+ | 1,187,217 |
| | Atlanta, Inc Project, Series 2019A, 4.000%, 7/01/44 | | | |
| | Guam – 1.6% | | | |
| 1,250 | | Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, | 11/25 at 100.00 | BB | 1,359,212 |
| | 5.000%, 11/15/39 | | | |
| 2,000 | | Government of Guam, Hotel Occupancy Tax Revenue Bonds, Series 2011A, 6.125%, 11/01/31 | 5/21 at 100.00 | BB | 2,017,120 |
| 3,250 | | Total Guam | | | 3,376,332 |
| | Idaho – 1.5% | | | |
| 3,000 | | Idaho Health Facilities Authority, Revenue Bonds, Saint Luke’s Health System Project, | 3/24 at 100.00 | A– | 3,288,750 |
| | Series 2014A, 5.000%, 3/01/44 | | | |
40
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Illinois – 8.9% | | | |
| $ 575 | | Chicago Board of Education, Illinois, Dedicated Capital Improvement Tax Revenue Bonds, | 4/27 at 100.00 | A– | $ 666,017 |
| | Series 2016, 6.000%, 4/01/46 | | | |
| 295 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB | 327,512 |
| | Refunding Series 2017C, 5.000%, 12/01/30 | | | |
| 3,900 | | Chicago Board of Education, Illinois, General Obligation Bonds, Series 1999A, 0.000%, | No Opt. Call | Baa2 | 3,043,950 |
| | 12/01/28– FGIC Insured | | | |
| 260 | | Illinois Finance Authority, Revenue Bonds, Rehabilitation Institute of Chicago, Series | 7/23 at 100.00 | A– | 287,258 |
| | 2013A, 6.000%, 7/01/43 | | | |
| 655 | | Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, | 11/20 at 100.00 | N/R (4) | 693,887 |
| | Series 1992C, 6.250%, 4/15/22 (ETM) | | | |
| 2,060 | | Illinois State, General Obligation Bonds, Refunding September Series 2018B, 5.000%, 10/01/23 | No Opt. Call | BBB– | 2,183,765 |
| 1,000 | | Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation | No Opt. Call | Aa3 | 980,980 |
| | Bonds, Series 2006, 0.000%, 5/01/23– AGM Insured | | | |
| | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place | | | |
| | Expansion Project, Series 2002A: | | | |
| 2,500 | | 0.000%, 12/15/30– NPFG Insured | No Opt. Call | BBB | 1,834,725 |
| 4,775 | | 0.000%, 12/15/31– NPFG Insured | No Opt. Call | BBB | 3,358,067 |
| 5,000 | | 0.000%, 12/15/36– NPFG Insured | No Opt. Call | BBB | 2,829,700 |
| 2,000 | | 0.000%, 6/15/37– NPFG Insured | No Opt. Call | BBB | 1,109,840 |
| 1,400 | | Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28 | 3/25 at 100.00 | A | 1,653,484 |
| 310 | | University of Illinois, Health Services Facilities System Revenue Bonds, Series 2013, | 10/23 at 100.00 | A– | 341,378 |
| | 6.000%, 10/01/42 | | | |
| 24,730 | | Total Illinois | | | 19,310,563 |
| | Indiana – 1.1% | | | |
| 1,250 | | Indiana Finance Authority, Wastewater Utility Revenue Bonds, CWA Authority Project, | 10/24 at 100.00 | AA | 1,431,688 |
| | Series 2015A, 5.000%, 10/01/45 | | | |
| 1,000 | | Zionsville Community Schools Building Corporation, Indiana, First Mortgage Bonds, Series | No Opt. Call | AA | 912,010 |
| | 2005Z, 0.000%, 7/15/28– AGM Insured | | | |
| 2,250 | | Total Indiana | | | 2,343,698 |
| | Iowa – 1.0% | | | |
| 570 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 11/20 at 104.00 | BB– | 593,438 |
| | Company Project, Series 2016, 5.875%, 12/01/26, 144A | | | |
| 660 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/22 at 105.00 | BB– | 697,851 |
| | Company Project, Series 2018B, 5.250%, 12/01/50 (Mandatory Put 12/01/37) | | | |
| 950 | | Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, | 11/20 at 100.00 | B– | 963,994 |
| | 5.600%, 6/01/34 | | | |
| 2,180 | | Total Iowa | | | 2,255,283 |
| | Massachusetts – 7.0% | | | |
| 2,230 | | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series | 10/26 at 100.00 | AA– | 2,604,305 |
| | 2016BB-1, 5.000%, 10/01/46 | | | |
| 1,000 | | Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Refunding | No Opt. Call | A | 1,033,590 |
| | Series 2016-I, 5.000%, 7/01/21 | | | |
| 1,300 | | Massachusetts Development Finance Agency, Revenue Bonds, Olin College, Series 2013E, | 11/23 at 100.00 | A+ | 1,417,013 |
| | 5.000%, 11/01/43 | | | |
| 2,250 | | Massachusetts Development Finance Agency, Revenue Bonds, Partners HealthCare System, | 7/23 at 100.00 | AA– (4) | 2,547,720 |
| | Series 2014M-4, 5.000%, 7/01/44 (Pre-refunded 7/01/23) | | | |
| 2,200 | | Massachusetts School Building Auvtthority, Dedicated Sales Tax Revenue Bonds, Subordinated | 2/26 at 100.00 | AA+ | 2,610,014 |
| | Series 2019A, 5.000%, 2/15/49 | | | |
| 2,180 | | Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Green Series | 8/26 at 100.00 | AA+ | 2,653,932 |
| | 2016C, 5.000%, 8/01/40 | | | |
41
| | |
| NXR | Nuveen Select Tax-Free Income Portfolio 3 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Massachusetts (continued) | | | |
| $ 1,000 | | Newburyport, Massachusetts, General Obligation Bonds, Municipal Purpose Loan, Refunding | 1/23 at 100.00 | AAA | $ 1,073,080 |
| | Series 2013, 4.000%, 1/15/30 | | | |
| | University of Massachusetts Building Authority, Project Revenue Bonds, Senior | | | |
| | Series 2014-1: | | | |
| 210 | | 5.000%, 11/01/39 (Pre-refunded 11/01/24) | 11/24 at 100.00 | N/R (4) | 250,755 |
| 955 | | 5.000%, 11/01/39 | 11/24 at 100.00 | Aa2 | 1,090,610 |
| 13,325 | | Total Massachusetts | | | 15,281,019 |
| | Michigan – 1.3% | | | |
| 355 | | Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds, | 7/22 at 100.00 | AA– (4) | 386,513 |
| | Refunding Senior Lien Series 2012A, 5.250%, 7/01/39 (Pre-refunded 7/01/22) | | | |
| 2,000 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series | 10/26 at 100.00 | Aa2 | 2,434,200 |
| | 2016-I, 5.000%, 4/15/35 | | | |
| 2,355 | | Total Michigan | | | 2,820,713 |
| | Nebraska – 1.7% | | | |
| 250 | | Madison County Hospital Authority 1, Nebraska, Hospital Revenue Bonds, Faith Regional | 7/25 at 100.00 | BBB | 289,607 |
| | Health Services Project, Series 2018, 5.000%, 7/01/26 | | | |
| 2,600 | | Nebraska Public Power District, General Revenue Bonds, Series 2015A-2, 5.000%, 1/01/40 | 1/22 at 100.00 | A+ | 2,722,122 |
| 500 | | Platte County School District 001, Columbus Public Schools, Nebraska, General Obligation | 6/24 at 100.00 | Aa2 (4) | 587,480 |
| | Bonds, School Building Series 2014, 5.000%, 12/15/39 (Pre-refunded 6/15/24) | | | |
| 3,350 | | Total Nebraska | | | 3,599,209 |
| | Nevada – 0.2% | | | |
| 445 | | Carson City, Nevada, Hospital Revenue Bonds, Carson Tahoe Regional Healthcare Project, | 9/27 at 100.00 | A– | 514,718 |
| | Series 2017A, 5.000%, 9/01/37 | | | |
| | New Hampshire – 0.5% | | | |
| 1,000 | | New Hampshire Business Finance Authority, Solid Waste Disposal Revenue Bonds, Waste | No Opt. Call | A– | 1,069,130 |
| | Management Inc Project, Series 2003, 3.125%, 8/01/24 (AMT) | | | |
| | New Jersey – 2.9% | | | |
| 1,850 | | New Jersey Economic Development Authority, Sublease Revenue Bonds, New Jersey Transit | No Opt. Call | BBB+ | 2,049,356 |
| | Corporation Projects, Refunding Series 2017B, 5.000%, 11/01/23 | | | |
| 305 | | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, University | 7/25 at 100.00 | AA | 349,493 |
| | Hospital Issue, Refunding Series 2015A, 5.000%, 7/01/28– AGM Insured | | | |
| 4,900 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding | No Opt. Call | BBB+ | 3,963,610 |
| | Series 2006C, 0.000%, 12/15/28– AMBAC Insured | | | |
| 7,055 | | Total New Jersey | | | 6,362,459 |
| | New Mexico – 0.5% | | | |
| 1,000 | | New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, | 10/20 at 100.00 | N/R | 1,020,840 |
| | Series 2007A, 5.250%, 9/01/42 (AMT) | | | |
| | New York – 1.4% | | | |
| 1,250 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding | 11/22 at 100.00 | A+ | 1,284,337 |
| | Series 2012F, 5.000%, 11/15/26 | | | |
| 1,260 | | New York City Municipal Water Finance Authority, New York, Water and Sewer System Second | 6/25 at 100.00 | AA+ | 1,497,573 |
| | General Resolution Revenue Bonds, Fiscal 2015 Series HH, 5.000%, 6/15/37 | | | |
| 265 | | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air | 12/20 at 100.00 | Baa1 | 267,311 |
| | Terminal LLC Project, Eigth Series 2010, 6.000%, 12/01/42 | | | |
| 2,775 | | Total New York | | | 3,049,221 |
| | Ohio – 3.6% | | | |
| 130 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | BBB+ | 142,202 |
| | Revenue Bonds, Refunding Senior Lien Series 2020A-2 Class 1, 4.000%, 6/01/48 | | | |
| 360 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/30 at 100.00 | N/R | 383,252 |
| | Revenue Bonds, Refunding Senior Lien Series 2020B-2 Class 2, 5.000%, 6/01/55 | | | |
42
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Ohio (continued) | | | |
| $ 3,720 | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | 6/22 at 100.00 | N/R (4) | $ 4,090,363 |
| | Revenue Bonds, Senior Lien Series 2007A-3, 6.250%, 6/01/37 (Pre-refunded 6/01/22) | | | |
| 1,500 | | Montgomery County, Ohio, Revenue Bonds, Miami Valley Hospital, Series 2011A, | 11/20 at 100.00 | A | 1,509,975 |
| | 5.750%, 11/15/21 | | | |
| 1,475 | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien | 2/23 at 100.00 | Aa3 (4) | 1,641,528 |
| | Series 2013A-1, 5.000%, 2/15/48 (Pre-refunded 2/15/23) | | | |
| 1,000 | | Ohio Water Development Authority, Pollution Control Revenue Bonds, FirstEnergy Nuclear | No Opt. Call | N/R | 1,250 |
| | Generating Corporation Project, Refunding Series 2005B, 4.000%, 1/01/34 (5) | | | |
| 8,185 | | Total Ohio | | | 7,768,570 |
| | Oklahoma – 0.2% | | | |
| 345 | | Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine | 8/28 at 100.00 | Baa3 | 400,700 |
| | Project, Series 2018B, 5.000%, 8/15/38 | | | |
| | Oregon – 1.5% | | | |
| 490 | | Clackamas County Hospital Facility Authority, Oregon, Senior Living Revenue Bonds, | No Opt. Call | N/R | 501,427 |
| | Willamette View Project, Series 2017A, 4.000%, 5/15/22 | | | |
| 545 | | Oregon Facilities Authority, Revenue Bonds, Reed College, Series 2017A, 4.000%, 7/01/41 | 7/27 at 100.00 | Aa2 | 620,940 |
| 1,000 | | Oregon Facilities Authority, Revenue Bonds, Willamette University, Refunding Series | 10/26 at 100.00 | A– | 1,130,570 |
| | 2016B, 5.000%, 10/01/40 | | | |
| 750 | | Washington and Clackamas Counties School District 23J Tigard-Tualatin, Oregon, General | 6/27 at 100.00 | AA+ | 952,118 |
| | Obligation Bonds, Series 2017, 5.000%, 6/15/30 | | | |
| 2,785 | | Total Oregon | | | 3,205,055 |
| | Pennsylvania – 4.7% | | | |
| 1,015 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, | 1/24 at 100.00 | A+ | 1,128,842 |
| | 5.000%, 1/01/37 | | | |
| 2,500 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, State System of | 6/26 at 100.00 | Aa3 | 2,993,925 |
| | Higher Education, Refunding Series 2016AT-1, 5.000%, 6/15/31 | | | |
| | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special | | | |
| | Revenue Bonds, Series 2010B-2: | | | |
| 370 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 372,953 |
| 200 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (4) | 201,596 |
| 430 | | 5.000%, 12/01/30 (Pre-refunded 12/01/20) | 12/20 at 100.00 | A2 (4) | 433,466 |
| 4,455 | | Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2015A, | 7/24 at 100.00 | A+ | 5,061,103 |
| | 5.000%, 7/01/40 | | | |
| 8,970 | | Total Pennsylvania | | | 10,191,885 |
| | Puerto Rico – 2.3% | | | |
| 945 | | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, | No Opt. Call | C | 1,008,409 |
| | 5.250%, 7/01/31– AMBAC Insured | | | |
| | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured | | | |
| | 2018A-1: | | | |
| 1,000 | | 4.750%, 7/01/53 | 7/28 at 100.00 | N/R | 1,042,510 |
| 750 | | 5.000%, 7/01/58 | 7/28 at 100.00 | N/R | 794,693 |
| 2,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Taxable | 7/28 at 100.00 | N/R | 2,043,340 |
| | Restructured Cofina Project Series 2019A-2, 4.329%, 7/01/40 | | | |
| 4,695 | | Total Puerto Rico | | | 4,888,952 |
| | South Carolina – 0.6% | | | |
| 1,270 | | South Carolina Transportation Infrastructure Bank, Revenue Bonds, Refunding Series | 10/24 at 100.00 | Aa3 | 1,362,380 |
| | 2015A, 2.900%, 10/01/25 | | | |
| | South Dakota – 0.2% | | | |
| 400 | | South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, | 11/25 at 100.00 | A+ | 469,256 |
| | Series 2015, 5.000%, 11/01/35 | | | |
43
| | |
| NXR | Nuveen Select Tax-Free Income Portfolio 3 Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Tennessee – 0.4% | | | |
| $ 795 | | Chattanooga Health, Educational and Housing Facility Board, Tennessee, Revenue Bonds, | 1/23 at 100.00 | BBB+ (4) | $ 881,735 |
| | Catholic Health Initiatives, Series 2013A, 5.250%, 1/01/45 (Pre-refunded 1/01/23) | | | |
| | Texas – 9.2% | | | |
| 250 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, | 1/21 at 100.00 | A– (4) | 253,607 |
| | 6.000%, 1/01/41 (Pre-refunded 1/01/21) | | | |
| 85 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, | 7/25 at 100.00 | A– | 97,983 |
| | 5.000%, 1/01/34 | | | |
| 4,640 | | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, Frst Tier | 10/23 at 100.00 | A+ (4) | 5,368,434 |
| | Series 2013A, 5.500%, 4/01/53 (Pre-refunded 10/01/23) | | | |
| | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H: | | | |
| 1,405 | | 0.000%, 11/15/32– NPFG Insured | 11/31 at 94.05 | Baa2 | 883,675 |
| 2,510 | | 0.000%, 11/15/36– NPFG Insured | 11/31 at 73.51 | Baa2 | 1,223,299 |
| 2,235 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, | 11/24 at 62.71 | Baa2 | 1,238,972 |
| | 0.000%, 11/15/32– NPFG Insured | | | |
| | Harris County-Houston Sports Authority, Texas, Special Revenue Bonds, Refunding Senior | | | |
| | Lien Series 2001A: | | | |
| 3,045 | | 0.000%, 11/15/34– NPFG Insured | 11/30 at 78.27 | AA | 1,774,504 |
| 4,095 | | 0.000%, 11/15/38– NPFG Insured | 11/30 at 61.17 | AA | 1,847,910 |
| 2,255 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, | 11/20 at 100.00 | Baa1 | 2,259,871 |
| | Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 | | | |
| 125 | | Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, | 10/21 at 105.00 | BB– | 132,378 |
| | Senior Lien Series 2018, 4.625%, 10/01/31, 144A (AMT) | | | |
| 290 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier Capital | 1/25 at 100.00 | AA | 347,553 |
| | Appreciation Series 2008I, 6.200%, 1/01/42– AGC Insured | | | |
| 2,000 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, | 12/22 at 100.00 | A3 | 2,136,340 |
| | Series 2012, 5.000%, 12/15/32 | | | |
| 2,410 | | Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier Series | No Opt. Call | A | 2,299,260 |
| | 2002A, 0.000%, 8/15/25– AMBAC Insured | | | |
| 25,345 | | Total Texas | | | 19,863,786 |
| | Virginia – 2.9% | | | |
| 3,500 | | Chesapeake, Virginia, Transportation System Senior Toll Road Revenue Bonds, Capital | 7/28 at 100.00 | BBB+ | 3,518,480 |
| | Appreciation Series 2012B, 0.000%, 7/15/32 (6) | | | |
| 765 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, | 10/29 at 100.00 | A– | 844,912 |
| | Dulles Metrorail & Capital improvement Projects, Refunding & Subordinate Lien Series 2019B, | | | |
| | 4.000%, 10/01/44 | | | |
| | Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River | | | |
| | Crossing, Opco LLC Project, Series 2012: | | | |
| 410 | | 6.000%, 1/01/37 (AMT) | 7/22 at 100.00 | BBB | 438,228 |
| 1,510 | | 5.500%, 1/01/42 (AMT) | 7/22 at 100.00 | BBB | 1,581,559 |
| 6,185 | | Total Virginia | | | 6,383,179 |
| | Washington – 4.4% | | | |
| 205 | | Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2019, 5.000%, | 4/29 at 100.00 | AA– | 242,845 |
| | 4/01/44 (AMT) | | | |
| 1,600 | | Washington Health Care Facilities Authority, Revenue Bonds, CommonSpirit Health, Series | 8/29 at 100.00 | BBB+ | 1,915,216 |
| | 2019A-2, 5.000%, 8/01/44 | | | |
| 4,000 | | Washington Health Care Facilities Authority, Revenue Bonds, Providence Health & | 10/22 at 100.00 | AA– | 4,262,000 |
| | Services, Refunding Series 2012A, 5.000%, 10/01/32 | | | |
| 1,000 | | Washington State Convention Center Public Facilities District, Lodging Tax Revenue | 7/28 at 100.00 | A1 | 1,110,260 |
| | Bonds, Series 2018, 5.000%, 7/01/58 | | | |
44
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Washington (continued) | | | |
| $ 1,725 | | Washington State, General Obligation Bonds, Various Purpose Series 2015B, | 2/25 at 100.00 | Aaa | $ 2,033,637 |
| | 5.000%, 2/01/37 | | | |
| 8,530 | | Total Washington | | | 9,563,958 |
| | Wisconsin – 0.6% | | | |
| 1,250 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, | 2/22 at 100.00 | A– | 1,307,263 |
| | Series 2012B, 5.000%, 2/15/32 | | | |
| $ 225,140 | | Total Municipal Bonds (cost $176,814,724) | | | 212,696,917 |
|
| Shares | | Description (1) | | | Value |
| | COMMON STOCKS – 0.4% | | | |
| | Electric Utilities – 0.4% | | | |
| 32,258 | | Energy Harbor Corp (7), (8) | | | $ 741,934 |
| | Total Common Stocks (cost $899,914) | | | 741,934 |
| | Total Long-Term Investments (cost $177,714,638) | | | 213,438,851 |
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | SHORT-TERM INVESTMENTS – 0.4% | | | |
| | MUNICIPAL BONDS – 0.4% | | | |
| | Florida – 0.4% | | | |
| $ 1,040 | | Florida Development Finance Corporation, Florida, Surface Transportation Facility Revenue Bonds, | 11/20 at 104.00 | N/R | $ 910,957 |
| | Virgin Trains USA Passenger Rail Project , Variable Rate Demand Obligations, Series 2019A, | | | |
| | 6.250%, 1/01/49 (AMT) (Mandatory Put 1/01/24), 144A (9) | | | |
| $ 1,040 | | Total Short-Term Investments (cost $1,040,000) | | | 910,957 |
| | Total Investments (cost $178,754,638) – 98.9% | | | 214,349,808 |
| | Other Assets Less Liabilities – 1.1% | | | 2,402,116 |
| | Net Assets Applicable to Common Shares – 100% | | | $ 216,751,924 |
| | |
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | 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. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
(5) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
(6) | Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period. |
(7) | Common Stock received as part of the bankruptcy settlement for Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2005B, 0.000%, 1/01/34. |
(8) | 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. |
(9) | Investment has a maturity of greater than one year, but has variable rate and/or demand features which qualify it as a short-term investment. The rate disclosed, as well as the reference rate and spread, where applicable, is that in effect as of the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
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. |
AMT | Alternative Minimum Tax |
| ETM | Escrowed to maturity |
| See accompanying notes to financial statements. |
45
| | |
| NXC | Nuveen California Select Tax-Free Income Portfolio Portfolio of Investments September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 99.1% | | | |
| | MUNICIPAL BONDS – 99.1% | | | |
| | Consumer Staples – 2.8% | | | |
| $ 20 | | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, | 6/30 at 100.00 | BBB+ | $ 22,306 |
| | Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49 | | | |
| 1,095 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement | 6/22 at 100.00 | B– | 1,132,821 |
| | Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37 | | | |
| 100 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement | 6/22 at 100.00 | N/R | 103,292 |
| | Asset-Backed Bonds, Series 2018A-1, 5.250%, 6/01/47 | | | |
| 1,500 | | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed | 10/20 at 100.00 | B– | 1,508,760 |
| | Bonds, Series 2005A-1, 5.500%, 6/01/45 | | | |
| 2,715 | | Total Consumer Staples | | | 2,767,179 |
| | Education and Civic Organizations – 1.2% | | | |
| 550 | | California Municipal Finance Authority, Charter School Revenue Bonds, Partnerships to | 8/22 at 100.00 | BB | 561,599 |
| | Uplift Communities Project, Series 2012A, 5.250%, 8/01/42 | �� | | |
| 160 | | California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship | 6/22 at 102.00 | N/R | 174,186 |
| | Education Multiple Projects, Series 2014A, 7.250%, 6/01/43 | | | |
| 60 | | California School Finance Authority, School Facility Revenue Bonds, Alliance for | 7/25 at 100.00 | BBB | 66,196 |
| | College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46, 144A | | | |
| 385 | | California School Finance Authority, School Facility Revenue Bonds, Alliance for | 7/25 at 101.00 | BBB | 428,155 |
| | College-Ready Public Schools Project, Series 2016C, 5.000%, 7/01/46 | | | |
| 1,155 | | Total Education and Civic Organizations | | | 1,230,136 |
| | Health Care – 9.9% | | | |
| 1,000 | | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter | 11/26 at 100.00 | A+ | 1,172,840 |
| | Health, Refunding Series 2016B, 5.000%, 11/15/46 | | | |
| 1,000 | | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter | 11/27 at 100.00 | A+ | 1,194,440 |
| | Health, Refunding Series 2017A, 5.000%, 11/15/48 | | | |
| 2,500 | | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter | 11/25 at 100.00 | A+ | 2,929,100 |
| | Health, Series 2016A, 5.000%, 11/15/41 | | | |
| 1,000 | | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter | 11/27 at 100.00 | A+ | 1,194,440 |
| | Health, Series 2018A, 5.000%, 11/15/48 | | | |
| 115 | | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard | 8/24 at 100.00 | AA– | 127,704 |
| | Children’s Hospital, Series 2014A, 5.000%, 8/15/43 | | | |
| 70 | | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & | 10/24 at 100.00 | AA– | 79,054 |
| | Services, Refunding Series 2014A, 5.000%, 10/01/38 | | | |
| 255 | | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & | 10/24 at 100.00 | AA– | 286,699 |
| | Services, Series 2014B, 5.000%, 10/01/44 | | | |
| 235 | | California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s | 8/21 at 100.00 | AA | 242,969 |
| | Hospital – San Diego, Series 2011, 5.250%, 8/15/41 | | | |
| 35 | | California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, | 7/27 at 100.00 | Baa2 | 39,896 |
| | Refunding Series 2017A, 5.000%, 7/01/42 | | | |
| 130 | | California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series | 11/26 at 100.00 | BBB– | 148,141 |
| | 2017A, 5.250%, 11/01/41 | | | |
| 350 | | California Statewide Communities Development Authority, California, Revenue Bonds, Loma | 12/24 at 100.00 | BB | 383,201 |
| | Linda University Medical Center, Series 2014A, 5.250%, 12/01/34 | | | |
| | California Statewide Communities Development Authority, California, Revenue Bonds, Loma | | | |
| | Linda University Medical Center, Series 2016A: | | | |
| 825 | | 5.000%, 12/01/46, 144A | 6/26 at 100.00 | BB | 893,046 |
| 540 | | 5.250%, 12/01/56, 144A | 6/26 at 100.00 | BB | 584,680 |
46
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Health Care (continued) | | | |
| $ 670 | | San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series | 12/21 at 100.00 | BB | $ 702,656 |
| | 2011, 7.500%, 12/01/41 | | | |
| 8,725 | | Total Health Care | | | 9,978,866 |
| | Housing/Multifamily – 2.2% | | | |
| 750 | | California Community Housing Agency, California, Essential Housing Revenue Bonds, | 2/30 at 100.00 | N/R | 839,258 |
| | Serenity at Larkspur Apartments, Series 2020A, 5.000%, 2/01/50, 144A | | | |
| 643 | | California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A Series | No Opt. Call | BBB+ | 711,389 |
| | 2019-2, 4.000%, 3/20/33 | | | |
| 93 | | California Housing Finance Agency, Municipal Certificate Revenue Bonds, Class A | No Opt. Call | BBB+ | 105,643 |
| | Series2019-1, 4.250%, 1/15/35 | | | |
| | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas | | | |
| | Affordable Housing Inc Projects, Senior Series 2014A: | | | |
| 25 | | 5.250%, 8/15/39 | 8/24 at 100.00 | BBB+ | 27,588 |
| 65 | | 5.250%, 8/15/49 | 8/24 at 100.00 | BBB+ | 71,174 |
| 395 | | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects | 8/22 at 100.00 | BBB | 416,350 |
| | Series 2012A, 5.500%, 8/15/47 | | | |
| 1,971 | | Total Housing/Multifamily | | | 2,171,402 |
| | Tax Obligation/General – 23.2% | | | |
| 1,000 | | California State, General Obligation Bonds, Various Purpose Refunding Series 2015, | 8/25 at 100.00 | Aa2 | 1,197,280 |
| | 5.000%, 8/01/34 | | | |
| 1,965 | | California State, General Obligation Bonds, Various Purpose Series 2011, | 10/21 at 100.00 | Aa2 | 2,052,639 |
| | 5.000%, 10/01/41 | | | |
| 2,000 | | California State, General Obligation Bonds, Various Purpose Series 2012, 5.250%, 4/01/35 | 4/22 at 100.00 | Aa2 | 2,140,720 |
| 1,000 | | Chaffey Joint Union High School District, San Bernardino County, California, General | 8/28 at 100.00 | Aa1 | 1,146,160 |
| | Obligation Bonds, Election 2012 Series 2019D, 4.000%, 8/01/49 | | | |
| 1,000 | | Los Angeles Unified School District, Los Angeles County, California, General Obligation | 1/28 at 100.00 | AA+ | 1,247,540 |
| | Bonds, Election 2008 Series 2018B-1, 5.250%, 7/01/42 | | | |
| 7,575 | | Palomar Pomerado Health, California, General Obligation Bonds, Convertible Capital | No Opt. Call | A2 | 5,406,959 |
| | Appreciation, Election 2004 Series 2010A, 0.000%, 8/01/34 | | | |
| 1,000 | | San Benito High School District, San Benito and Santa Clara Counties, California, | 8/27 at 100.00 | Aa3 | 1,225,790 |
| | General Obligation Bonds, 2016 Election Series 2017, 5.250%, 8/01/46 | | | |
| 8,075 | | San Bernardino Community College District, California, General Obligation Bonds, | No Opt. Call | Aa1 | 4,055,103 |
| | Election of 2008 Series 2009B, 0.000%, 8/01/44 | | | |
| 2,050 | | San Mateo County Community College District, California, General Obligation Bonds, | 9/28 at 100.00 | AAA | 2,580,397 |
| | Election 2014 Series 2018B, 5.000%, 9/01/45 | | | |
| 2,000 | | West Hills Community College District, California, General Obligation Bonds, School | 8/31 at 100.00 | AA | 2,255,340 |
| | Facilities Improvement District 3, 2008 Election Series 2011, 0.000%, 8/01/38 – AGM Insured (5) | | | |
| 27,665 | | Total Tax Obligation/General | | | 23,307,928 |
| | Tax Obligation/Limited – 18.5% | | | |
| 1,000 | | Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project | 11/20 at 100.00 | AA | 1,003,350 |
| | Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured | | | |
| 2,000 | | California State Public Works Board, Lease Revenue Bonds, Department of Corrections & | 9/23 at 100.00 | Aa3 | 2,262,380 |
| | Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/33 | | | |
| 3,000 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement | 6/25 at 100.00 | Aa3 | 3,477,180 |
| | Asset-Backed Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/40 | | | |
| 1,215 | | Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont | 11/20 at 100.00 | Aa2 | 1,218,730 |
| | Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured | | | |
| 1,000 | | Los Angeles County Metropolitan Transportation Authority, California, Measure R Sales | 6/26 at 100.00 | AAA | 1,221,820 |
| | Tax Revenue Bonds, Senior Series 2016A, 5.000%, 6/01/38 | | | |
| 3,000 | | Los Angeles County Metropolitan Transportation Authority, California, Proposition C | 7/27 at 100.00 | AAA | 3,709,020 |
| | Sales Tax Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/42 | | | |
47
| | |
| NXC | Nuveen California Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Tax Obligation/Limited (continued) | | | |
| $ 1,000 | | Norco Redevelopment Agency, California, Tax Allocation Bonds, Project Area 1, Series | 11/20 at 100.00 | A+ | $ 1,004,070 |
| | 2009, 7.000%, 3/01/34 | | | |
| | Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities | | | |
| | District 2001-1, Senior Series 2013A: | | | |
| 350 | | 5.250%, 9/01/30 | 9/23 at 100.00 | N/R | 385,042 |
| 320 | | 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 350,743 |
| 60 | | Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities | 9/23 at 100.00 | N/R | 65,975 |
| | District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39 | | | |
| | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, | | | |
| | Restructured 2018A-1: | | | |
| 8 | | 4.550%, 7/01/40 | 7/28 at 100.00 | N/R | 8,290 |
| 675 | | 0.000%, 7/01/46 | 7/28 at 41.38 | N/R | 145,395 |
| 763 | | 5.000%, 7/01/58 | 7/28 at 100.00 | N/R | 808,467 |
| 30 | | Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley | 10/21 at 100.00 | A | 31,879 |
| | Project Area, Series 2011B, 6.500%, 10/01/25 | | | |
| 115 | | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series | No Opt. Call | AA– | 115,470 |
| | 1993A, 5.400%, 11/01/20 – NPFG Insured | | | |
| 20 | | San Clemente, California, Special Tax Revenue Bonds, Community Facilities District | 9/25 at 100.00 | N/R | 22,378 |
| | 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40 | | | |
| 60 | | San Francisco City and County Redevelopment Agency Successor Agency, California, Special | 8/24 at 100.00 | N/R | 63,668 |
| | Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, | | | |
| | Refunding Series 2014, 5.000%, 8/01/39 | | | |
| 40 | | Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series | 4/21 at 100.00 | N/R | 41,124 |
| | 2011, 7.000%, 10/01/26 | | | |
| 1,285 | | Stockton Public Financing Authority, California, Revenue Bonds, Arch Road East Community | 9/25 at 103.00 | N/R | 1,498,644 |
| | Facility District 99-02, Series 2018A, 5.000%, 9/01/28 | | | |
| 50 | | Transbay Joint Powers Authority, California, Tax Allocation Bonds, Senior Green Series | 4/30 at 100.00 | A– | 61,844 |
| | 2020A, 5.000%, 10/01/45 | | | |
| 1,000 | | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series | 10/22 at 100.00 | AA | 1,074,100 |
| | 2012A, 5.000%, 10/01/32 – AGM Insured | | | |
| 16,991 | | Total Tax Obligation/Limited | | | 18,569,569 |
| | Transportation – 11.7% | | | |
| 60 | | California Municipal Finance Authority, Special Facility Revenue Bonds, United Airlines, | No Opt. Call | B+ | 59,340 |
| | Inc Los Angeles International Airport Project, Series 2019, 4.000%, 7/15/29 (AMT) | | | |
| 530 | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, | 1/24 at 100.00 | BBB+ | 599,276 |
| | Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 | | | |
| | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, | | | |
| | Refunding Series 2013A: | | | |
| 1,000 | | 5.000%, 1/15/42 – AGM Insured | 1/24 at 100.00 | AA | 1,101,650 |
| 1,170 | | 5.750%, 1/15/46 | 1/24 at 100.00 | A– | 1,297,121 |
| 800 | | Long Beach, California, Harbor Revenue Bonds, Series 2015D, 5.000%, 5/15/42 | 5/25 at 100.00 | AA | 920,960 |
| 1,525 | | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International | 5/28 at 100.00 | Aa3 | 1,824,403 |
| | Airport, Subordinate Lien Series 2018A, 5.250%, 5/15/48 (AMT) | | | |
| 2,315 | | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International | 5/29 at 100.00 | Aa3 | 2,839,000 |
| | Airport, Subordinate Lien Series 2019F, 5.000%, 5/15/37 (AMT) | | | |
| 955 | | Port of Oakland, California, Revenue Bonds, Refunding Series 2012P, 5.000%, 5/01/31 (AMT) | 5/22 at 100.00 | A+ | 1,022,022 |
| 1,000 | | San Diego County Regional Airport Authority, California, Airport Revenue Bonds, | 7/29 at 100.00 | A+ | 1,193,210 |
| | Subordinate Series 2019B, 5.000%, 7/01/49 (AMT) | | | |
| 750 | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road | 1/25 at 100.00 | BBB+ | 827,828 |
| | Revenue Bonds, Refunding Junior Lien Series 2014B, 5.250%, 1/15/44 | | | |
| 10,105 | | Total Transportation | | | 11,684,810 |
48
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | U.S. Guaranteed – 8.8% (4) | | | |
| $ 55 | | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & | 10/24 at 100.00 | N/R | $ 65,554 |
| | Services, Refunding Series 2014A, 5.000%, 10/01/38 (Pre-refunded 10/01/24) | | | |
| 250 | | California Statewide Communities Development Authority, School Facility Revenue Bonds, | 7/21 at 100.00 | N/R | 262,570 |
| | Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46 (Pre-refunded 7/01/21) | | | |
| 2,000 | | Escondido Joint Powers Financing Authority, California, Revenue Bonds, Water System | 3/22 at 100.00 | AA– | 2,135,180 |
| | Financing, Series 2012, 5.000%, 9/01/41 (Pre-refunded 3/01/22) | | | |
| 1,175 | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, | 1/24 at 100.00 | A– | 1,398,097 |
| | Refunding Series 2013A, 6.000%, 1/15/53 (Pre-refunded 1/15/24) | | | |
| 675 | | Imperial Irrigation District, California, Electric System Revenue Bonds, Refunding | 11/20 at 100.00 | A1 | 677,943 |
| | Series 2011A, 5.500%, 11/01/41 (Pre-refunded 11/01/20) | | | |
| 135 | | National City Community Development Commission, California, Tax Allocation Bonds, | 8/21 at 100.00 | A | 142,089 |
| | National City Redevelopment Project, Series 2011, 6.500%, 8/01/24 (Pre-refunded 8/01/21) | | | |
| 50 | | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field | 9/21 at 100.00 | A– | 52,989 |
| | Redevelopment Project, Series 2011, 6.750%, 9/01/40 (Pre-refunded 9/01/21) | | | |
| 1,100 | | Palomar Pomerado Health Care District, California, Certificates of Participation, Series | 11/20 at 100.00 | Ba1 | 1,105,214 |
| | 2010, 6.000%, 11/01/41 (Pre-refunded 11/01/20) | | | |
| 160 | | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series | 9/21 at 100.00 | A– | 168,104 |
| | 2011A, 5.750%, 9/01/30 (Pre-refunded 9/01/21) | | | |
| 1,365 | | San Diego County Regional Transportation Commission, California, Sales Tax Revenue | 4/22 at 100.00 | AAA | 1,464,822 |
| | Bonds, Refunding Series 2012A, 5.000%, 4/01/42 (Pre-refunded 4/01/22) | | | |
| 25 | | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, | 2/21 at 100.00 | A– | 25,547 |
| | Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 (Pre-refunded 2/01/21) | | | |
| | San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue | | | |
| | Bonds, Mission Bay South Redevelopment Project, Series 2011D: | | | |
| 25 | | 7.000%, 8/01/33 (Pre-refunded 2/01/21) | 2/21 at 100.00 | BBB+ | 25,555 |
| 30 | | 7.000%, 8/01/41 (Pre-refunded 2/01/21) | 2/21 at 100.00 | BBB+ | 30,665 |
| 360 | | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series | 3/21 at 100.00 | N/R | 370,897 |
| | 2011, 7.500%, 9/01/39 (Pre-refunded 3/01/21) | | | |
| 800 | | Upland, California, Certificates of Participation, San Antonio Community Hospital, | 1/21 at 100.00 | BBB | 811,472 |
| | Series 2011, 6.500%, 1/01/41 (Pre-refunded 1/01/21) | | | |
| 70 | | Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue | 9/21 at 100.00 | N/R | 73,991 |
| | Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32 | | | |
| | (Pre-refunded 9/01/21) | | | |
| 8,275 | | Total U.S. Guaranteed | | | 8,810,689 |
| | Utilities – 8.7% | | | |
| | California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, | | | |
| | Poseidon Resources Channelside LP Desalination Project, Series 2012: | | | |
| 375 | | 5.000%, 7/01/37 (AMT), 144A | 7/22 at 100.00 | BBB | 390,720 |
| 1,160 | | 5.000%, 11/21/45 (AMT), 144A | 7/22 at 100.00 | BBB | 1,203,976 |
| 645 | | Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, | No Opt. Call | A+ | 933,895 |
| | Series 2007A, 5.500%, 11/15/37 | | | |
| 3,000 | | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, | 7/27 at 100.00 | Aa2 | 3,664,140 |
| | Series 2017C, 5.000%, 7/01/47 | | | |
| 2,000 | | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, | 1/28 at 100.00 | Aa2 | 2,508,220 |
| | Series 2018A, 5.000%, 7/01/38 | | | |
| 7,180 | | Total Utilities | | | 8,700,951 |
| | Water and Sewer – 12.1% | | | |
| 1,000 | | Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost | 4/23 at 100.00 | AA– | 1,109,590 |
| | Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34 | | | |
| 1,480 | | California Infrastructure and Economic Development Bank, Clean Water State Revolving | 4/27 at 100.00 | AAA | 1,867,153 |
| | Fund Revenue Bonds, Green Series 2017, 5.000%, 10/01/33 | | | |
| 1,730 | | East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, | 6/27 at 100.00 | AAA | 1,973,601 |
| | Water System Revenue Bonds, Green Series 2017A, 4.000%, 6/01/45 | | | |
49
| | |
| NXC | Nuveen California Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Water and Sewer (continued) | | | |
| $ 2,000 | | Irvine Ranch Water District, California, Certificates of Participation, Irvine Ranch | 9/26 at 100.00 | AAA | $ 2,425,100 |
| | Water District Series 2016, 5.000%, 3/01/41 | | | |
| 1,970 | | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series | 7/24 at 100.00 | AA+ | 2,264,555 |
| | 2014A, 5.000%, 7/01/44 | | | |
| 1,000 | | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series | 7/28 at 100.00 | AA+ | 1,275,000 |
| | 2018B, 5.000%, 7/01/38 | | | |
| 620 | | Los Angeles, California, Wastewater System Revenue Bonds, Green Subordinate Lien Series | 6/27 at 100.00 | AA | 765,030 |
| | 2017A, 5.250%, 6/01/47 | | | |
| 90 | | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, | 11/20 at 100.00 | CC | 91,125 |
| | 6.000%, 7/01/44 | | | |
| | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A: | | | |
| 50 | | 5.500%, 7/01/28 | 7/22 at 100.00 | CC | 51,688 |
| 175 | | 5.750%, 7/01/37 | 7/22 at 100.00 | CC | 180,031 |
| 145 | | 6.000%, 7/01/47 | 7/22 at 100.00 | CC | 149,894 |
| 10,260 | | Total Water and Sewer | | | 12,152,767 |
| $ 95,042 | | Total Long-Term Investments (cost $87,316,236) | | | 99,374,297 |
| | Other Assets Less Liabilities – 0.9% | | | 928,898 |
| | Net Assets – 100% | | | $ 100,303,195 |
| | |
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | 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. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
(5) | Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
AMT | Alternative Minimum Tax |
| See accompanying notes to financial statements. |
50
| | |
| NXN | Nuveen New York Select Tax-Free Income Portfolio Portfolio of Investments September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 97.3% | | | |
| | MUNICIPAL BONDS – 97.3% | | | |
| | Consumer Staples – 4.7% | | | |
| $ 435 | | Erie County Tobacco Asset Securitization Corporation, New York, Tobacco Settlement | 11/20 at 100.00 | B– | $ 435,265 |
| | Asset-Backed Bonds, Series 2005A, 5.000%, 6/01/38 | | | |
| | New York Counties Tobacco Trust VI, New York, Tobacco Settlement Pass-Through Bonds, | | | |
| | Series Series 2016A-1: | | | |
| 390 | | 5.625%, 6/01/35 | No Opt. Call | BBB | 418,182 |
| 1,530 | | 5.750%, 6/01/43 | No Opt. Call | BB+ | 1,792,655 |
| 2,355 | | Total Consumer Staples | | | 2,646,102 |
| | Education and Civic Organizations – 13.6% | | | |
| 165 | | Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter | 11/20 at 100.00 | BB | 165,117 |
| | Schools, Series 2007A, 5.000%, 4/01/37 | | | |
| 280 | | Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue | 12/20 at 100.00 | B+ | 281,170 |
| | Bonds, Enterprise Charter School Project, Series 2011A, 7.500%, 12/01/40 | | | |
| | Build New York City Resource Corporation, New York, Revenue Bonds, South Bronx Charter | | | |
| | School for International Cultures and the Arts Project, Series 2013A: | | | |
| 75 | | 5.000%, 4/15/33 | 4/23 at 100.00 | BB+ | 77,632 |
| 110 | | 5.000%, 4/15/43 | 4/23 at 100.00 | BB+ | 112,759 |
| 150 | | Dormitory Authority of the State of New York, General Revenue Bonds, Saint Johns | 7/23 at 100.00 | A– | 158,716 |
| | University, Series 2013A, 5.000%, 7/01/44 | | | |
| 1,000 | | Dormitory Authority of the State of New York, Housing Revenue Bonds, Fashion Institute | No Opt. Call | Baa2 | 1,173,450 |
| | of Technology, Series 2007, 5.250%, 7/01/34 – FGIC Insured | | | |
| | Dormitory Authority of the State of New York, Lease Revenue Bonds, State University | | | |
| | Dormitory Facilities, Series 2015A: | | | |
| 20 | | 5.000%, 7/01/31 | 7/25 at 100.00 | Aa3 | 23,228 |
| 25 | | 5.000%, 7/01/33 | 7/25 at 100.00 | Aa3 | 28,827 |
| 1,000 | | Dormitory Authority of the State of New York, Revenue Bonds, Columbia University, Series | 4/21 at 100.00 | AAA | 1,022,120 |
| | 2011A, 5.000%, 10/01/41 | | | |
| 605 | | Dormitory Authority of the State of New York, Revenue Bonds, Icahn School of Medicine at | 7/25 at 100.00 | A– | 684,957 |
| | Mount Sinai, Refunding Series 2015A, 5.000%, 7/01/40 | | | |
| 290 | | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series | 7/25 at 100.00 | Aa2 | 344,842 |
| | 2015A, 5.000%, 7/01/35 | | | |
| 1,185 | | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series | 7/26 at 100.00 | Aa2 | 1,432,357 |
| | 2016A, 5.000%, 7/01/39 | | | |
| 70 | | Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of | 7/29 at 100.00 | A1 | 86,305 |
| | Technology, Series 2019A, 5.000%, 7/01/49 | | | |
| 250 | | Dormitory Authority of the State of New York, Revenue Bonds, Vaughn College of | 12/26 at 100.00 | BB– | 252,187 |
| | Aeronautics & Technology, Series 2016A, 5.500%, 12/01/36, 144A | | | |
| 215 | | Glen Cove Local Economic Assistance Corporation, New York, Revenue Bonds, Garvies Point | 1/34 at 100.00 | N/R | 201,085 |
| | Public Improvement Project, Capital Appreciation Series 2016C, 0.000%, 1/01/55 (5) | | | |
| 110 | | Hempstead Town Local Development Corporation, New York, Revenue Bonds, Adelphi | 9/23 at 100.00 | A– | 117,681 |
| | University Project, Series 2013, 5.000%, 9/01/38 | | | |
| | New York City Industrial Development Agency, New York, PILOT Payment in Lieu of Taxes | | | |
| | Revenue Bonds, Queens Baseball Stadium Project, Series 2006: | | | |
| 500 | | 5.000%, 1/01/31 – AMBAC Insured | 11/20 at 100.00 | Baa3 | 500,065 |
| 430 | | 4.750%, 1/01/42 – AMBAC Insured | 11/20 at 100.00 | Baa3 | 430,009 |
| 130 | | New York City Industrial Development Agency, New York, PILOT Payment in Lieu of Taxes | 9/30 at 100.00 | AA | 145,249 |
| | Revenue Bonds, Yankee Stadium Project, Series 2020A, 4.000%, 3/01/45, (WI/DD, Settling 10/06/20) | | | |
51
| | |
| NXN | Nuveen New York Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Education and Civic Organizations (continued) | | | |
| $ 190 | | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, Bank of | 3/29 at 100.00 | A2 | $ 191,433 |
| | America Tower at One Bryant Park Project, Second Priority Refunding Series 2019 Class 2, | | | |
| | 2.625%, 9/15/69 | | | |
| 145 | | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, Bank of | 3/29 at 100.00 | Baa2 | 140,292 |
| | America Tower at One Bryant Park Project, Second Priority Refunding Series 2019 Class 3, | | | |
| | 2.800%, 9/15/69 | | | |
| 6,945 | | Total Education and Civic Organizations | | | 7,569,481 |
| | Financials – 1.1% | | | |
| 450 | | Liberty Development Corporation, New York, Goldman Sachs Headquarter Revenue Bonds, | No Opt. Call | A | 624,690 |
| | Series 2005, 5.250%, 10/01/35 | | | |
| | Health Care – 2.7% | | | |
| 100 | | Dormitory Authority of the State of New York, Highland Hospital of Rochester Revenue | 11/20 at 100.00 | A | 100,287 |
| | Bonds, Series 2010, 5.200%, 7/01/32 | | | |
| 1,100 | | Dormitory Authority of the State of New York, Revenue Bonds, Montefiore Obligated Group, | 3/30 at 100.00 | BBB | 1,182,192 |
| | Series 2020A, 4.000%, 9/01/50 | | | |
| 200 | | Dutchess County Local Development Corporation, New York, Revenue Bonds, Health Quest | 7/26 at 100.00 | A– | 214,548 |
| | Systems, Inc Project, Series 2016B, 4.000%, 7/01/41 | | | |
| 1,400 | | Total Health Care | | | 1,497,027 |
| | Industrials – 3.7% | | | |
| 160 | | Build New York City Resource Corporation, New York, Solid Waste Disposal Revenue Bonds, | 1/25 at 100.00 | N/R | 175,408 |
| | Pratt Paper NY, Inc Project, Series 2014, 5.000%, 1/01/35 (AMT), 144A | | | |
| 1,865 | | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, 3 World Trade | 11/24 at 100.00 | N/R | 1,913,994 |
| | Center Project, Class 1 Series 2014, 5.000%, 11/15/44, 144A | | | |
| 2,025 | | Total Industrials | | | 2,089,402 |
| | Long-Term Care – 0.2% | | | |
| 100 | | Dormitory Authority of the State of New York, Non-State Supported Debt, Ozanam Hall of | 11/20 at 100.00 | A2 | 100,260 |
| | Queens Nursing Home Revenue Bonds, Series 2006, 5.000%, 11/01/31 | | | |
| 25 | | Monroe County Industrial Development Corporation, New York, Revenue Bonds, Saint Ann’s | 1/26 at 103.00 | N/R | 26,062 |
| | Community Project, Series 2019, 5.000%, 1/01/40 | | | |
| 125 | | Total Long-Term Care | | | 126,322 |
| | Tax Obligation/General – 7.4% | | | |
| 1,000 | | Nassau County, New York, General Obligation Bonds, General Improvement Bonds Series | 4/30 at 100.00 | AA | 1,239,900 |
| | 2019B, 5.000%, 4/01/49 – AGM Insured | | | |
| 1,080 | | New York City, New York, General Obligation Bonds, Fiscal 2017 Series B-1, | 12/26 at 100.00 | Aa1 | 1,287,198 |
| | 5.000%, 12/01/41 | | | |
| 835 | | New York City, New York, General Obligation Bonds, Fiscal 2020 SeriesD-1, | 3/30 at 100.00 | Aa1 | 951,115 |
| | 4.000%, 3/01/44 | | | |
| 600 | | Yonkers, New York, General Obligation Bonds, Refunding Series 2011A, 5.000%, 10/01/24 – | 10/21 at 100.00 | AA | 629,172 |
| | AGM Insured | | | |
| 3,515 | | Total Tax Obligation/General | | | 4,107,385 |
| | Tax Obligation/Limited – 19.4% | | | |
| 1,050 | | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, | 2/22 at 100.00 | AA+ | 1,108,684 |
| | General Purpose Series 2012D, 5.000%, 2/15/37 | | | |
| 1,000 | | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, | 3/29 at 100.00 | Aa1 | 1,214,780 |
| | General Purpose, Series 2019A Bidding Group 2,3,4, 5.000%, 3/15/46 | | | |
| 1,000 | | Dormitory Authority of the State of New York, State Sales Tax Revenue Bonds, Series | 9/25 at 100.00 | AA+ | 1,189,370 |
| | 2015B Group A,B&C, 5.000%, 3/15/35 | | | |
| 1,000 | | Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D, | No Opt. Call | BB | 1,132,560 |
| | 5.000%, 11/15/25 | | | |
52
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Tax Obligation/Limited (continued) | | | |
| $ 800 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Second Indenture | 2/27 at 100.00 | Aa2 | $ 937,800 |
| | Fiscal 2017 Series A, 5.000%, 2/15/38 | | | |
| 760 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 | 2/21 at 100.00 | Aa2 | 774,448 |
| | Series 2011A, 5.750%, 2/15/47 | | | |
| 1,000 | | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, | 7/25 at 100.00 | AA | 1,170,510 |
| | Fiscal Series 2015S-2, 5.000%, 7/15/40 | | | |
| 1,000 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, | 5/23 at 100.00 | AAA | 1,106,360 |
| | Subordinate Fiscal 2013 Series I, 5.000%, 5/01/38 | | | |
| 450 | | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, | 2/24 at 100.00 | AAA | 510,624 |
| | Subordinate Fiscal 2014 Series D-1, 5.000%, 2/01/35 | | | |
| 500 | | New York City Transitional Finance Authority, New York, Future Tax Secured Revenue | 2/21 at 100.00 | AAA | 508,270 |
| | Bonds, Subordinate Series 2011-D1, 5.250%, 2/01/30 | | | |
| 235 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured | 7/28 at 100.00 | N/R | 249,004 |
| | 2018A-1, 5.000%, 7/01/58 | | | |
| 845 | | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series | 10/22 at 100.00 | AA | 907,614 |
| | 2012A, 5.000%, 10/01/32 – AGM Insured | | | |
| 9,640 | | Total Tax Obligation/Limited | | | 10,810,024 |
| | Transportation – 18.6% | | | |
| 900 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series | 11/24 at 100.00 | A+ | 930,348 |
| | 2014D-1, 5.000%, 11/15/39 | | | |
| 250 | | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, 4 World Trade | 11/21 at 100.00 | A | 260,697 |
| | Center Project, Series 2011, 5.000%, 11/15/44 | | | |
| 980 | | New York Transportation Development Corporation, New York, Special Facilities Bonds, | 7/24 at 100.00 | BBB | 1,045,043 |
| | LaGuardia Airport Terminal B Redevelopment Project, Series 2016A, 5.000%, 7/01/46 (AMT) | | | |
| | New York Transportation Development Corporation, New York, Special Facility Revenue Bonds, | | | |
| | American Airlines, Inc John F Kennedy International Airport Project, Refunding Series 2016: | | | |
| 200 | | 5.000%, 8/01/26 (AMT) | 8/21 at 100.00 | BB– | 200,518 |
| 830 | | 5.000%, 8/01/31 (AMT) | 8/21 at 100.00 | BB– | 829,527 |
| 30 | | New York Transportation Development Corporation, New York, Special Facility Revenue | 8/30 at 100.00 | BB– | 31,168 |
| | Bonds, American Airlines, Inc John F Kennedy International Airport Project, Series 2020, | | | |
| | 5.375%, 8/01/36 (AMT) | | | |
| | New York Transportation Development Corporation, Special Facility Revenue Bonds, Delta | | | |
| | Air Lines, Inc – LaGuardia Airport Terminals C&D Redevelopment Project, Series 2018: | | | |
| 700 | | 5.000%, 1/01/28 (AMT) | No Opt. Call | Baa3 | 771,617 |
| 300 | | 5.000%, 1/01/31 (AMT) | 1/28 at 100.00 | Baa3 | 325,056 |
| 1,000 | | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred | 10/25 at 100.00 | Aa3 | 1,169,960 |
| | Ninety-Fourth Series 2015, 5.250%, 10/15/55 | | | |
| 1,500 | | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, Two Hundred | 9/28 at 100.00 | Aa3 | 1,799,085 |
| | Eleventh Series 2018, 5.000%, 9/01/48 | | | |
| | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air | | | |
| | Terminal LLC Project, Eigth Series 2010: | | | |
| 290 | | 6.500%, 12/01/28 | 11/20 at 100.00 | Baa1 | 294,025 |
| 215 | | 6.000%, 12/01/36 | 12/20 at 100.00 | Baa1 | 216,881 |
| 1,000 | | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, MTA | 5/27 at 100.00 | AA– | 1,210,580 |
| | Bridges & Tunnels, Refunding Series 2017B, 5.000%, 11/15/36 | | | |
| 1,095 | | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, MTA | 5/27 at 100.00 | AA– | 1,297,126 |
| | Bridges & Tunnels, Series 2017A, 5.000%, 11/15/47 | | | |
| 9,290 | | Total Transportation | | | 10,381,631 |
| | U.S. Guaranteed – 8.8% (4) | | | |
| 1,240 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 | 2/21 at 100.00 | Aa2 | 1,265,829 |
| | Series 2011A, 5.750%, 2/15/47 (Pre-refunded 2/15/21) | | | |
53
| | |
| NXN | Nuveen New York Select Tax-Free Income Portfolio Portfolio of Investments (continued) September 30, 2020 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | U.S. Guaranteed (4) (continued) | | | |
| $ 400 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, | 5/21 at 100.00 | A | $ 411,468 |
| | 5.000%, 5/01/38 (Pre-refunded 5/01/21) | | | |
| 2,000 | | Monroe County Industrial Development Corporation, New York, Revenue Bonds, University | 7/21 at 100.00 | AA– | 2,073,340 |
| | of Rochester Project, Series 2011B, 5.000%, 7/01/41 (Pre-refunded 7/01/21) | | | |
| 1,005 | | New York City Trust for Cultural Resources, New York, Revenue Bonds, Wildlife | 8/23 at 100.00 | A+ | 1,141,087 |
| | Conservation Society, Series 2014A, 5.000%, 8/01/32 (Pre-refunded 8/01/23) | | | |
| 4,645 | | Total U.S. Guaranteed | | | 4,891,724 |
| | Utilities – 7.4% | | | |
| 35 | | Guam Power Authority, Revenue Bonds, Series 2012A, 5.000%, 10/01/34 | 10/22 at 100.00 | BBB | 36,758 |
| 50 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series | 9/24 at 100.00 | A | 57,222 |
| | 2014A, 5.000%, 9/01/44 | | | |
| 180 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series | 9/27 at 100.00 | A | 216,828 |
| | 2017, 5.000%, 9/01/47 | | | |
| 150 | | Niagara Area Development Corporation, New York, Solid Waste Disposal Facility Revenue | 7/23 at 100.00 | B1 | 152,306 |
| | Refunding Bonds, Covanta Energy Project, Series 2018A, 4.750%, 11/01/42 (AMT), 144A | | | |
| 1,365 | | Utility Debt Securitization Authority, New York, Restructuring Bonds, Series 2013TE, | 12/23 at 100.00 | AAA | 1,550,176 |
| | 5.000%, 12/15/41 | | | |
| 1,750 | | Utility Debt Securitization Authority, New York, Restructuring Bonds, Series 2016B, | 6/26 at 100.00 | AAA | 2,141,265 |
| | 5.000%, 12/15/35 | | | |
| 3,530 | | Total Utilities | | | 4,154,555 |
| | Water and Sewer – 9.7% | | | |
| 200 | | Buffalo Municipal Water Finance Authority, New York, Water System Revenue Bonds, | 7/25 at 100.00 | A+ | 239,056 |
| | Refunding Series 2015A, 5.000%, 7/01/29 | | | |
| 3,000 | | New York City Municipal Water Finance Authority, New York, Water and Sewer System Second | 12/27 at 100.00 | AA+ | 3,702,510 |
| | General Resolution Revenue Bonds, Fiscal 2018 Series EE, 5.000%, 6/15/40 | | | |
| 1,000 | | New York State Environmental Facilities Corporation, State Clean Water and Drinking | 6/27 at 100.00 | AAA | 1,229,200 |
| | Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority | | | |
| | Projects-Second Resolution Bonds,, 5.000%, 6/15/42 | | | |
| 55 | | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, | 11/20 at 100.00 | CC | 55,687 |
| | 6.000%, 7/01/44 | | | |
| | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A: | | | |
| 25 | | 5.500%, 7/01/28 | 7/22 at 100.00 | CC | 25,844 |
| 100 | | 5.750%, 7/01/37 | 7/22 at 100.00 | CC | 102,875 |
| 80 | | 6.000%, 7/01/47 | 7/22 at 100.00 | CC | 82,700 |
| 4,460 | | Total Water and Sewer | | | 5,437,872 |
| $ 48,380 | | Total Long-Term Investments (cost $50,935,385) | | | 54,336,215 |
| | Other Assets Less Liabilities – 2.7% | | | 1,481,937 |
| | Net Assets Applicable to Common Shares – 100% | | | $ 55,818,152 |
| | |
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | 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. |
(3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
(5) | Step-up coupon bond, a bond with a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. The rate shown is the coupon as of the end of the reporting period. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
AMT | Alternative Minimum Tax |
WI/DD | Purchased on a when-issued or delayed delivery basis. |
| See accompanying notes to financial statements. |
54
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
| Assets | | | | | | | | | | | | | | | | |
| Long-term investments, at value (cost $225,208,646, | | | | | | | | | | | | | | | | |
| $235,226,962, $177,714,638, $87,316,236 | | | | | | | | | | | | | | | | |
| and $50,935,385, respectively) | | | $ | 263,382,022 | | | $ | 269,191,261 | | | $ | 213,438,851 | | | $ | 99,374,297 | | | $ | 54,336,215 | |
| Short-term investments, at value (cost $1,305,000, | | | | | | | | | | | | | | | | | | | | | |
| $1,345,000, $1,040,000, $— and $—, respectively) | | | | 1,143,076 | | | | 1,178,112 | | | | 910,957 | | | | — | | | | — | |
| Cash | | | | 591,155 | | | | 206,962 | | | | 1,115,309 | | | | 144,277 | | | | 283,035 | |
| Receivable for: | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | | 2,471,337 | | | | 2,677,531 | | | | 1,936,519 | | | | 1,118,023 | | | | 667,648 | |
| Investments sold | | | | 625,000 | | | | 600,000 | | | | — | | | | 182,807 | | | | 866,869 | |
| Other assets | | | | 64,975 | | | | 67,720 | | | | 50,989 | | | | 26,018 | | | | 16,752 | |
| Total assets | | | | 268,277,565 | | | | 273,921,586 | | | | 217,452,625 | | | | 100,845,422 | | | | 56,170,519 | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | |
| Payable for: | | | | | | | | | | | | | | | | | | | | | |
| Dividends | | | | 718,117 | | | | 719,891 | | | | 548,591 | | | | 266,181 | | | | 148,864 | |
| Interest | | | | — | | | | — | | | | — | | | | — | | | | 121 | |
| Investments purchased - regular settlement | | | | — | | | | — | | | | — | | | | 191,403 | | | | — | |
| Investments purchased - when-issued/ | | | | | | | | | | | | | | | | | | | | | |
| delayed-delivery settlement | | | | — | | | | — | | | | — | | | | — | | | | 144,238 | |
| Accrued expenses: | | | | | | | | | | | | | | | | | | | | | |
| Management fees | | | | 43,911 | | | | 55,996 | | | | 44,957 | | | | 21,252 | | | | 11,824 | |
| Trustees fees | | | | 66,372 | | | | 69,179 | | | | 51,718 | | | | 25,210 | | | | 15,352 | |
| Other | | | | 66,819 | | | | 66,386 | | | | 55,435 | | | | 38,181 | | | | 31,968 | |
| Total liabilities | | | | 895,219 | | | | 911,452 | | | | 700,701 | | | | 542,227 | | | | 352,367 | |
| Net assets applicable to common shares | | | $ | 267,382,346 | | | $ | 273,010,134 | | | $ | 216,751,924 | | | $ | 100,303,195 | | | $ | 55,818,152 | |
| Common shares outstanding | | | | 16,579,541 | | | | 17,713,727 | | | | 13,045,560 | | | | 6,353,486 | | | | 3,924,895 | |
| Net asset value (“NAV”) per common share outstanding | | | $ | 16.13 | | | $ | 15.41 | | | $ | 16.61 | | | $ | 15.79 | | | $ | 14.22 | |
| | |
| Net assets applicable to common shares consist of: | | | | | | | | | | | | | | | | | | | | | |
| Common shares, $0.01 par value per share | | | $ | 165,795 | | | $ | 177,137 | | | $ | 130,456 | | | $ | 63,535 | | | $ | 39,249 | |
| Paid-in-surplus | | | | 230,256,315 | | | | 245,552,725 | | | | 179,536,881 | | | | 88,413,388 | | | | 53,856,609 | |
| Total distributable earnings | | | | 36,960,236 | | | | 27,280,272 | | | | 37,084,587 | | | | 11,826,272 | | | | 1,922,294 | |
| Net assets applicable to common shares | | | $ | 267,382,346 | | | $ | 273,010,134 | | | $ | 216,751,924 | | | $ | 100,303,195 | | | $ | 55,818,152 | |
| Authorized shares | | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | |
See accompanying notes to financial statements.
55
Six Months Ended September 30, 2020 (Unaudited)
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
| Investment Income | | $ | 5,046,513 | | | $ | 4,941,028 | | | $ | 4,036,266 | | | $ | 1,836,498 | | | $ | 1,048,517 | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
Management fees | | | 266,453 | | | | 338,362 | | | | 272,222 | | | | 128,857 | | | | 71,643 | |
Interest expense | | | — | | | | — | | | | — | | | | — | | | | 61 | |
Custodian fees | | | 16,276 | | | | 16,624 | | | | 13,883 | | | | 9,262 | | | | 7,530 | |
Trustees fees | | | 4,177 | | | | 4,246 | | | | 3,395 | | | | 1,574 | | | | 873 | |
Professional fees | | | 17,113 | | | | 16,686 | | | | 15,756 | | | | 13,961 | | | | 13,131 | |
Shareholder reporting expenses | | | 20,043 | | | | 18,311 | | | | 14,876 | | | | 8,089 | | | | 6,466 | |
Shareholder servicing agent fees | | | 4,298 | | | | 3,987 | | | | 3,508 | | | | 1,152 | | | | 1,063 | |
Stock exchange listing fees | | | 3,257 | | | | 3,257 | | | | 3,257 | | | | 3,246 | | | | 3,257 | |
Investor relations expenses | | | 8,021 | | | | 8,072 | | | | 6,429 | | | | 3,091 | | | | 1,872 | |
Other | | | 5,826 | | | | 8,723 | | | | 6,869 | | | | 4,057 | | | | 3,515 | |
Total expenses | | | 345,464 | | | | 418,268 | | | | 340,195 | | | | 173,289 | | | | 109,411 | |
Net investment income (loss) | | | 4,701,049 | | | | 4,522,760 | | | | 3,696,071 | | | | 1,663,209 | | | | 939,106 | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) from investments | | | 19,894 | | | | (200,792 | ) | | | 251,871 | | | | (7,697 | ) | | | (136,825 | ) |
Change in net unrealized appreciation (depreciation) | | | | | | | | | | | | | | | | | | | | |
| of investments | | | 5,720,700 | | | | 6,887,384 | | | | 3,774,989 | | | | 2,275,437 | | | | 1,053,427 | |
Net realized and unrealized gain (loss) | | | 5,740,594 | | | | 6,686,592 | | | | 4,026,860 | | | | 2,267,740 | | | | 916,602 | |
Net increase (decrease) in net assets applicable | | | | | | | | | | | | | | | | | | | | |
| to common shares from operations | | $ | 10,441,643 | | | $ | 11,209,352 | | | $ | 7,722,931 | | | $ | 3,930,949 | | | $ | 1,855,708 | |
See accompanying notes to financial statements.
56
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | | | | | | |
| | NXP | | NXQ | | NXR | |
| | Six Months | | Year | | Six Months | | Year | | Six Months | | Year | |
| | Ended | | Ended | | Ended | | Ended | | Ended | | Ended | |
| | 9/30/20 | | 3/31/20 | | 9/30/20 | | 3/31/20 | | 9/30/20 | | 3/31/20 | |
| Operations | | | | | | | | | | | | |
| Net investment income (loss) | $ | 4,701,049 | | $ | 9,550,461 | | $ | 4,522,760 | | $ | 9,412,793 | | $ | 3,696,071 | | $ | 7,473,738 | |
| Net realized gain (loss) from investments | | 19,894 | | | 744,584 | | | (200,792 | ) | | 1,145,079 | | | 251,871 | | | 344,363 | |
| Change in net unrealized appreciation | | | | | | | | | | | | | | | | | | |
| (depreciation) of investments | | 5,720,700 | | | 3,133,910 | | | 6,887,384 | | | 1,324,827 | | | 3,774,989 | | | 4,647,408 | |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | | | |
| applicable to common shares | | | | | | | | | | | | | | | | | | |
| from operations | | 10,441,643 | | | 13,428,955 | | | 11,209,352 | | | 11,882,699 | | | 7,722,931 | | | 12,465,509 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | | | | | | |
| Dividends | | (4,525,816 | ) | | (9,048,585 | ) | | (4,463,859 | ) | | (8,927,718 | ) | | (3,404,891 | ) | | (6,809,782 | ) |
| Decrease in net assets applicable to | | | | | | | | | | | | | | | | | | |
| common shares from distributions to | | | | | | | | | | | | | | | | | | |
| common shareholders | | (4,525,816 | ) | | (9,048,585 | ) | | (4,463,859 | ) | | (8,927,718 | ) | | (3,404,891 | ) | | (6,809,782 | ) |
| Capital Share Transactions | | | | | | | | | | | | | | | | | | |
| Net proceeds from shares issued | | | | | | | | | | | | | | | | | | |
| to shareholders due to | | | | | | | | | | | | | | | | | | |
| reinvestment of distributions | | 28,374 | | | 120,787 | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | | | |
| applicable to common shares | | | | | | | | | | | | | | | | | | |
| from capital share transactions | | 28,374 | | | 120,787 | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | | | |
| applicable to common shares | | 5,944,201 | | | 4,501,157 | | | 6,745,493 | | | 2,954,981 | | | 4,318,040 | | | 5,655,727 | |
| Net assets at the beginning of period | | 261,438,145 | | | 256,936,988 | | | 266,264,641 | | | 263,309,660 | | | 212,433,884 | | | 206,778,157 | |
| Net assets applicable to common | | | | | | | | | | | | | | | | | | |
| shares at the end of period | $ | 267,382,346 | | $ | 261,438,145 | | $ | 273,010,134 | | $ | 266,264,641 | | $ | 216,751,924 | | $ | 212,433,884 | |
See accompanying notes to financial statements.
57
Statement of Changes in Net Assets (Unaudited) (continued)
| | | | | | | | | | | | | |
| | | NXC | | | NXN | |
| | | Six Months | | | Year | | | Six Months | | | Year | |
| | | Ended | | | Ended | | | Ended | | | Ended | |
| | | 9/30/20 | | | 3/31/20 | | | 9/30/20 | | | 3/31/20 | |
| Operations | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 1,663,209 | | | $ | 3,375,449 | | | $ | 939,106 | | | $ | 1,904,632 | |
| Net realized gain (loss) from investments | | | (7,697 | ) | | | 129,883 | | | | (136,825 | ) | | | 21,954 | |
| Change in net unrealized appreciation | | | | | | | | | | | | | | | | |
| (depreciation) of investments | | | 2,275,437 | | | | 1,198,763 | | | | 1,053,427 | | | | (443,509 | ) |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | |
| applicable to common shares | | | | | | | | | | | | | | | | |
| from operations | | | 3,930,949 | | | | 4,704,095 | | | | 1,855,708 | | | | 1,483,077 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | | | | |
| Dividends | | | (1,665,610 | ) | | | (3,295,962 | ) | | | (930,200 | ) | | | (1,860,400 | ) |
| Decrease in net assets applicable to | | | | | | | | | | | | | | | | |
| common shares from distributions to | | | | | | | | | | | | | | | | |
| common shareholders | | | (1,665,610 | ) | | | (3,295,962 | ) | | | (930,200 | ) | | | (1,860,400 | ) |
| Capital Share Transactions | | | | | | | | | | | | | | | | |
| Net proceeds from shares issued | | | | | | | | | | | | | | | | |
| to shareholders due to | | | | | | | | | | | | | | | | |
| reinvestment of distributions | | | 24,993 | | | | 31,306 | | | | — | | | | — | |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | |
| applicable to common shares | | | | | | | | | | | | | | | | |
| from capital share transactions | | | 24,993 | | | | 31,306 | | | | — | | | | — | |
| Net increase (decrease) in net assets | | | | | | | | | | | | | | | | |
| applicable to common shares | | | 2,290,332 | | | | 1,439,439 | | | | 925,508 | | | | (377,323 | ) |
| Net assets at the beginning of period | | | 98,012,863 | | | | 96,573,424 | | | | 54,892,644 | | | | 55,269,967 | |
| Net assets applicable to common | | | | | | | | | | | | | | | | |
| shares at the end of period | | $ | 100,303,195 | | | $ | 98,012,863 | | | $ | 55,818,152 | | | $ | 54,892,644 | |
See accompanying notes to financial statements.
58
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59
Financial Highlights (Unaudited)
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Operations | | | Less Distributions to Common Shareholders | | | Common Share | |
| | Beginning Common Share NAV | | | Net Investment Income (Loss) | | | Net Realized/ Unrealized Gain (Loss) | | | Total | | | From Net
Investment Income | | | From Accumulated Net Realized
Gains | | | Total | | | Ending NAV | | | Ending Share Price | |
| NXP | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 3/31: | | | | | | | | | | | | | | | | |
2021(d) | | $ | 15.77 | | | $ | 0.28 | | | $ | 0.35 | | | $ | 0.63 | | | $ | (0.27 | ) | | $ | — | | | $ | (0.27 | ) | | $ | 16.13 | | | $ | 16.69 | |
2020 | | | 15.51 | | | | 0.58 | | | | 0.23 | | | | 0.81 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 15.77 | | | | 14.97 | |
2019 | | | 15.12 | | | | 0.57 | | | | 0.37 | | | | 0.94 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 15.51 | | | | 14.64 | |
2018 | | | 15.00 | | | | 0.56 | | | | 0.11 | | | | 0.67 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 15.12 | | | | 14.02 | |
2017 | | | 15.46 | | | | 0.56 | | | | (0.47 | ) | | | 0.09 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 15.00 | | | | 14.03 | |
2016 | | | 15.17 | | | | 0.58 | | | | 0.27 | | | | 0.85 | | | | (0.56 | ) | | | — | | | | (0.56 | ) | | | 15.46 | | | | 14.89 | |
| | |
| NXQ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 3/31:
| | �� | | | | | | | | | | | | | | | | | | | | | | | |
2021(d) | | | 15.03 | | | | 0.26 | | | | 0.37 | | | | 0.63 | | | | (0.25 | ) | | | — | | | | (0.25 | ) | | | 15.41 | | | | 14.98 | |
2020 | | | 14.86 | | | | 0.53 | | | | 0.14 | | | | 0.67 | | | | (0.50 | ) | | | — | | | | (0.50 | ) | | | 15.03 | | | | 14.21 | |
2019 | | | 14.52 | | | | 0.53 | | | | 0.31 | | | | 0.84 | | | | (0.50 | ) | | | — | | | | (0.50 | ) | | | 14.86 | | | | 13.93 | |
2018 | | | 14.47 | | | | 0.52 | | | | 0.05 | | | | 0.57 | | | | (0.52 | ) | | | — | | | | (0.52 | ) | | | 14.52 | | | | 13.47 | |
2017 | | | 14.88 | | | | 0.53 | | | | (0.42 | ) | | | 0.11 | | | | (0.52 | ) | | | — | | | | (0.52 | ) | | | 14.47 | | | | 13.41 | |
2016 | | | 14.64 | | | | 0.55 | | | | 0.23 | | | | 0.78 | | | | (0.54 | ) | | | — | | | | (0.54 | ) | | | 14.88 | | | | 14.13 | |
| | |
(a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
60
| | | | | | | | | | | | | | | | | |
| | | | | | | Common Share Supplemental Data/ Ratios Applicable to Common Shares | |
Common Share Total Returns | | | | | | Ratios to Average Net Assets | | | | |
Based on NAV(a) | | | Based on Share Price(a) | | | Ending Net Assets (000) | | | Expenses(b) | | | Net Investment Income (Loss) | | | Portfolio Turnover Rate(c) | |
| | |
| | |
| | 4.04 | % | | | 13.44 | % | | $ | 267,382 | | | | 0.26 | %* | | | 3.54 | %* | | | 4 | % |
| | 5.19 | | | | 5.89 | | | | 261,438 | | | | 0.26 | | | | 3.60 | | | | 10 | |
| | 6.34 | | | | 8.51 | | | | 256,937 | | | | 0.26 | | | | 3.77 | | | | 17 | |
| | 4.52 | | | | 3.83 | | | | 250,551 | | | | 0.27 | | | | 3.66 | | | | 19 | |
| | 0.55 | | | | (2.20 | ) | | | 248,518 | | | | 0.28 | | | | 3.64 | | | | 28 | |
| | 5.78 | | | | 6.82 | | | | 256,228 | | | | 0.28 | | | | 3.88 | | | | 25 | |
| | |
| | |
| | |
| | 4.23 | | | | 7.22 | | | | 273,010 | | | | 0.31 | * | | | 3.34 | * | | | 4 | |
| | 4.52 | | | | 5.57 | | | | 266,265 | | | | 0.31 | | | | 3.48 | | | | 13 | |
| | 5.95 | | | | 7.32 | | | | 263,310 | | | | 0.31 | | | | 3.64 | | | | 12 | |
| | 3.98 | | | | 4.32 | | | | 257,250 | | | | 0.32 | | | | 3.53 | | | | 20 | |
| | 0.69 | | | | (1.56 | ) | | | 256,325 | | | | 0.33 | | | | 3.61 | | | | 27 | |
| | 5.46 | | | | 5.46 | | | | 263,530 | | | | 0.33 | | | | 3.76 | | | | 23 | |
| | |
(b) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Note 4 – Portfolio Securities and Investments in Derivatives), where applicable, as follows: |
| | | | | |
| NXP | | | NXQ | |
Year Ended 3/31: | | Year Ended 3/31: |
2021(d) | —% | | 2021(d) | —% |
2020 | — | | 2020 | — |
2019 | — | | 2019 | — |
2018 | — | | 2018 | — |
2017 | — | | 2017 | — |
2016 | — | | 2016 | — |
| | |
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives), divided by the average long-term market value during the period. |
(d) | For the six months ended September 30, 2020. |
* | Annualized. |
See accompanying notes to financial statements.
61
Financial Highlights (Unaudited) (continued)
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Operations | | | Less Distributions to Common Shareholders | | | Common Share | |
| | | Beginning Common Share NAV | | | Net Investment Income (Loss) | | | Net Realized/ Unrealized Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Accumulated Net Realized Gains | | | Total | | | Shelf Offering Costs | | | Premium Per Share Sold through Shelf Offering | | | Ending NAV | | | Ending Share Price | |
| NXR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 3/31:
| | | | | | | | | | | | | | | | | | | | | | | | | |
2021(d) | | $ | 16.28 | | | $ | 0.28 | | | $ | 0.31 | | | $ | 0.59 | | | $ | (0.26 | ) | | $ | — | | | $ | (0.26 | ) | | $ | — | | | $ | — | | | $ | 16.61 | | | $ | 16.40 | |
2020 | | | 15.85 | | | | 0.57 | | | | 0.38 | | | | 0.95 | | | | (0.52 | ) | | | — | | |
| (0.52 | ) | | | — | | | | — | | | | 16.28 | | | | 15.40 | |
2019 | | | 15.39 | | | | 0.56 | | | | 0.42 | | | | 0.98 | | | | (0.52 | ) | | | — | | | | (0.52 | ) | | | — | | | | — | | | | 15.85 | | | | 14.73 | |
2018 | | | 15.29 | | | | 0.55 | | | | 0.09 | | | | 0.64 | | | | (0.54 | ) | | | — | | | | (0.54 | ) | | | — | | | | — | | | | 15.39 | | | | 14.23 | |
2017 | | | 15.76 | | | | 0.57 | | | | (0.51 | ) | | | 0.06 | | | | (0.53 | ) | | | — | | | | (0.53 | ) | | | — | | | | — | | | | 15.29 | | | | 14.21 | |
2016 | | | 15.34 | | | | 0.58 | | | | 0.40 | | | | 0.98 | | | | (0.56 | ) | | | — | | | | (0.56 | ) | | | — | | | | — | | | | 15.76 | | | | 14.89 | |
| | |
| NXC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 3/31:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021(d) | | | 15.43 | | | | 0.26 | | | | 0.36 | | | | 0.62 | | | | (0.26 | ) | | | — | | | | (0.26 | ) | | | — | | | | — | | | | 15.79 | | | | 16.01 | |
2020 | | | 15.21 | | | | 0.53 | | | | 0.21 | | | | 0.74 | | | | (0.52 | ) | | | — | | | | (0.52 | ) | | | — | | | | — | | | | 15.43 | | | | 14.50 | |
2019 | | | 15.02 | | | | 0.50 | | | | 0.19 | | | | 0.69 | | | | (0.52 | ) | | | — | | | | (0.52 | ) | | | 0.02 | | | | — | | | | 15.21 | | | | 14.12 | |
2018 | | | 15.00 | | | | 0.57 | | | | 0.09 | | | | 0.66 | | | | (0.58 | ) | | | (0.06 | ) | | | (0.64 | ) | | | — | | | | — | ** | | | 15.02 | | | | 13.90 | |
2017 | | | 15.68 | | | | 0.60 | | | | (0.56 | ) | | | 0.04 | | | | (0.62 | ) | | | (0.10 | ) | | | (0.72 | ) | | | — | | | | — | | | | 15.00 | | | | 14.83 | |
2016 | | | 15.52 | | | | 0.64 | | | | 0.19 | | | | 0.83 | | | | (0.65 | ) | | | (0.02 | ) | | | (0.67 | ) | | | — | | | | — | | | | 15.68 | | | | 16.70 | |
| | |
(a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
62
| | | | | | | | | | | | | | | | | |
| | | | | | | Common Share Supplemental Data/ Ratios Applicable to Common Shares | |
Common Share Total Returns | | | | | | Ratios to Average Net Assets | | | | |
| | |
| | |
Based on NAV(a) | | | Based on Share Price(a) | | | Ending Net Assets (000) | | | Expenses(b) | | | Net Investment Income (Loss) | | | Portfolio Turnover Rate(c) | |
| | |
| | |
| | 3.71 | % | | | 8.24 | % | | $ | 216,752 | | | | 0.32 | %* | | | 3.43 | %* | | | 4 | % |
| | 6.02 | | | | 8.05 | | | | 212,434 | | | | 0.32 | | | | 3.50 | | | | 13 | |
| | 6.53 | | | | 7.31 | | | | 206,778 | | | | 0.32 | | | | 3.62 | | | | 17 | |
| | 4.19 | | | | 3.87 | | | | 200,765 | | | | 0.33 | | | | 3.55 | | | | 15 | |
| | 0.37 | | | | (1.09 | ) | | | 199,496 | | | | 0.33 | | | | 3.61 | | | | 29 | |
| | 6.56 | | | | 4.76 | | | | 205,595 | | | | 0.34 | | | | 3.81 | | | | 22 | |
| | |
| | |
| | |
| | 4.05 | | | | 12.27 | | | | 100,303 | | | | 0.35 | * | | | 3.33 | * | | | 0 | |
| | 4.86 | | | | 6.26 | | | | 98,013 | | | | 0.36 | | | | 3.41 | | | | 10 | |
| | 4.82 | | | | 5.44 | | | | 96,573 | | | | 0.55 | | | | 3.38 | | | | 23 | |
| | 4.37 | | | | (2.23 | ) | | | 95,357 | | | | 0.37 | | | | 3.73 | | | | 20 | |
| | 0.20 | | | | (6.98 | ) | | | 94,310 | | | | 0.37 | | | | 3.89 | | | | 24 | |
| | 5.51 | | | | 13.25 | | | | 98,494 | | | | 0.37 | | | | 4.18 | | | | 10 | |
| | |
(b) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Note 4 – Portfolio Securities and Investments in Derivatives), where applicable, as follows: |
| | | | | |
| NXR | | | NXC | |
Year Ended 3/31: | | Year Ended 3/31: |
2021(d) | —% | | 2021(d) | —% |
2020 | — | | 2020 | — |
2019 | — | | 2019 | — |
2018 | — | | 2018 | — |
2017 | — | | 2017 | — |
2016 | — | | 2016 | — |
| | |
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives), divided by the average long-term market value during the period. |
(d) | For the six months ended September 30, 2020. |
* | Annualized. |
** | Rounds to less than $0.01 per share. |
See accompanying notes to financial statements.
63
Financial Highlights (Unaudited) (continued)
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Operations | | | Less Distributions to Common Shareholders | | | Common Share | |
| | Beginning Common Share NAV | | | Net Investment Income (Loss) | | | Net Realized/ Unrealized Gain (Loss) | | | Total | | | From Net Investment Income | | | From Accumulated Net Realized
Gains | | | Total | | | Ending NAV | | | Ending Common Share Price | |
| NXN | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 3/31:
| | | | | | | | | | | | | | | | | | | |
2021(d) | | $ | 13.99 | | | $ | 0.24 | | | $ | 0.23 | | | $ | 0.47 | | | $ | (0.24 | ) | | $ | — | | | $ | (0.24 | ) | | $ | 14.22 | | | $ | 13.08 | |
2020 | | | 14.08 | | | | 0.49 | | | | (0.11 | ) | | | 0.38 | | | | (0.47 | ) | | | — | | | | (0.47 | ) | | | 13.99 | | | | 12.65 | |
2019 | | | 13.93 | | | | 0.50 | | | | 0.15 | | | | 0.65 | | | | (0.50 | ) | | | — | | | | (0.50 | ) | | | 14.08 | | | | 13.52 | |
2018 | | | 14.04 | | | | 0.52 | | | | (0.09 | ) | | | 0.43 | | | | (0.54 | ) | | | — | | | | (0.54 | ) | | | 13.93 | | | | 12.98 | |
2017 | | | 14.53 | | | | 0.55 | | | | (0.49 | ) | | | 0.06 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 14.04 | | | | 13.69 | |
2016 | | | 14.52 | | | | 0.57 | | | | (0.01 | ) | | | 0.56 | | | | (0.55 | ) | | | — | | | | (0.55 | ) | | | 14.53 | | | | 14.06 | |
| | |
(a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
64
| | | | | | | | | | | | | | | | | |
| | | | | | | Common Share Supplemental Data/ Ratios Applicable to Common Shares | |
Common Share Total Returns | | | | | | Ratios to Average Net Assets | | | | |
Based on NAV(a) | | | Based on Share Price(a) | | | Ending Net Assets (000) | | | Expenses(b) | | | Net Investment Income (Loss) | | | Portfolio Turnover Rate(c) | |
| | |
| | |
| | 3.36 | % | | | 5.28 | % | | $ | 55,818 | | | | 0.39 | %* | | | 3.38 | %* | | | 10 | % |
| | 2.69 | | | | (3.18 | ) | | | 54,893 | | | | 0.43 | | | | 3.39 | | | | 5 | |
| | 4.80 | | | | 8.26 | | | | 55,270 | | | | 0.42 | | | | 3.59 | | | | 16 | |
| | 3.05 | | | | (1.41 | ) | | | 54,679 | | | | 0.43 | | | | 3.64 | | | | 17 | |
| | 0.40 | | | | 1.26 | | | | 55,120 | | | | 0.44 | | | | 3.83 | | | | 29 | |
| | 3.98 | | | | 3.63 | | | | 57,031 | | | | 0.42 | | | | 3.97 | | | | 14 | |
| | |
(b) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Note 4 – Portfolio Securities and Investments in Derivatives), where applicable, as follows: |
| | |
| NXN | |
Year Ended 3/31: |
2021(d) | —%** |
2020 | 0.02 |
2019 | 0.02 |
2018 | 0.02 |
2017 | 0.02 |
2016 | 0.01 |
| | |
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives), divided by the average long-term market value during the period. |
(d) | For the six months ended September 30, 2020. |
* | Annualized. |
** | Rounds to less than 0.01% annualized. |
See accompanying notes to financial statements.
65
Financial Statements (Unaudited)
1. General Information
Fund Information
The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) symbols are as follows (each a “Fund” and collectively, the “Funds”):
• Nuveen Select Tax-Free Income Portfolio (NXP)
• Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
• Nuveen Select Tax-Free Income Portfolio 3 (NXR)
• Nuveen California Select Tax-Free Income Portfolio (NXC)
• Nuveen New York Select Tax-Free Income Portfolio (NXN)
The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as diversified closed-end management investment companies. NXP, NXQ, NXR, NXC, and NXN were organized as Massachusetts business trusts on January 29, 1992, March 30, 1992, May 28, 1992, March 30, 1992, and March 30, 1992, respectively.
The end of the reporting period for the Funds is September 30, 2020, and the period covered by these Notes to Financial Statements is the six months ended September 30, 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.
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 quarter 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 common share transactions. The NAV for financial reporting purposes includes security and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and common share transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Compensation
The Funds pay 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 Funds from the Adviser or its affiliates. The Funds’ Board of Trustees (the “Board”) has adopted a deferred compensation plan for independent trustees that enables trustees 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.
66
Distributions to Common Shareholders
Distributions to common 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.
Indemnifications
Under the Funds’ organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect 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. Realized gains and losses on securities transactions are based upon the specific identification method. Investment income is comprised of interest income, which is recorded on an accrual basis and includes accretion of discounts and amortization of premiums for financial reporting purposes. Investment income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Investment income also reflects dividend income, which is recorded on the ex-dividend date.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivatives 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 and existing contracts, the Funds may elect to apply the optional expedients as of March 12, 2020 through December 31, 2022. Management has not yet elected to apply the optional expedients, but is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
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).
67
Notes to Financial Statements (Unaudited) (continued)
A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:
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.
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.
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.
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:
| | | | | | | | | | | | | |
| NXP | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Long-Term Investments*: | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 262,640,088 | | | $ | — | | | $ | 262,640,088 | |
| Common Stocks | | | — | | | | 741,934 | ** | | | — | | | | 741,934 | |
Short-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | | — | | | | 1,143,076 | | | | — | | | | 1,143,076 | |
Total | | $ | — | | | $ | 264,525,098 | | | $ | — | | | $ | 264,525,098 | |
| | |
| NXQ | | | | | | | | | | | | | | | | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 268,449,327 | | | $ | — | | | $ | 268,449,327 | |
| Common Stocks | | | — | | | | 741,934 | ** | | | — | | | | 741,934 | |
Short-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | | — | | | | 1,178,112 | | | | — | | | | 1,178,112 | |
Total | | $ | — | | | $ | 270,369,373 | | | $ | — | | | $ | 270,369,373 | |
| | |
| NXR | | | | | | | | | | | | | | | | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 212,696,917 | | | $ | — | | | $ | 212,696,917 | |
| Common Stocks | | | — | | | | 741,934 | ** | | | — | | | | 741,934 | |
Short-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | | — | | | | 910,957 | | | | — | | | | 910,957 | |
Total | | $ | — | | | $ | 214,349,808 | | | $ | — | | | $ | 214,349,808 | |
| | |
| NXC | | | | | | | | | | | | | | | | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 99,374,297 | | | $ | — | | | $ | 99,374,297 | |
| | |
| NXN | | | | | | | | | | | | | | | | |
Long-Term Investments*: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 54,336,215 | | | $ | — | | | $ | 54,336,215 | |
| | |
* | Refer to the Fund’s Portfolio of Investments for state/industry classifications. |
** | Refer to the Fund’s Portfolio of Investments for securities classified as Level 2. |
68
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond (referred to as an “Underlying Bond”), typically with a fixed interest rate, into a special purpose tender option bond (“TOB”) trust (referred to as the “TOB Trust”) created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as “Floaters”), in face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b) an inverse floating rate certificate (referred to as an “Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider (“Liquidity Provider”), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, and in most circumstances the Inverse Floater holder bears substantially all of the Underlying Bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the Underlying Bond’s value. The value of an Inverse Floater will be more volatile than that of the Underlying Bond because the interest rate is dependent on not only the fixed coupon rate of the Underlying Bond but also on the short-term interest paid on the Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.
The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse Floater”). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an “externally-deposited Inverse Floater”).
An investment in a self-deposited Inverse Floater is accounted for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations” on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in “Investment Income” the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust’s borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Earnings due from the Underlying Bond and interest due to the holders of the Floaters as of the end of the reporting period are recognized as components of “Receivable for interest” and “Payable for interest” on the Statement of Assets and Liabilities, respectively.
In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund’s Portfolio of Investments as “(IF) – Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets and Liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in “Investment Income” only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.
During the current fiscal period, the average amount of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rate and fees related to self-deposited Inverse Floaters, were as follows:
| | | | | | | | | | | | | | | | |
| Self-Deposited Inverse Floaters | | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Average floating rate obligations outstanding | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,322 | |
Average annual interest rate and fees | | | — | % | | | — | % | | | — | % | | | — | % | | | 5.25 | % |
69
Notes to Financial Statements (Unaudited) (continued)
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investment Transactions
Long-term purchases and sales (including maturities) during the current fiscal period were as follows:
| | | | | | |
| NXP | NXQ | NXR | NXC | NXN |
Purchases | $11,128,912 | $13,493,543 | $ 8,853,706 | $341,578 | $5,258,185 |
Sales and maturities | 12,218,133 | 10,700,481 | 10,235,429 | 255,380 | 5,532,357 |
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
In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain derivative investments, such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. 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.
Although the Funds are authorized to invest in derivative instruments and may do so in the future, they did not make any such investments during the current fiscal period.
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
Common Shares Transactions
Transactions in common shares during the Funds’ current and prior fiscal period, where applicable, were as follows:
| | | | | |
| NXP | NXC |
| Six Months | Year | Six Months | Year |
| Ended | Ended | Ended | Ended |
| 9/30/20 | 3/31/20 | 9/30/20 | 3/31/20 |
Common shares issued to shareholders due to reinvestment of distributions | 1,755 | 7,476 | 1,574 | 1,980 |
70
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. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
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 taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. 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 September 30, 2020.
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Tax cost of investments | | $ | 224,421,518 | | | $ | 235,474,996 | | | $ | 176,726,780 | | | $ | 87,339,751 | | | $ | 50,954,251 | |
Gross unrealized: | | | | | | | | | | | | | | | | | | | | |
| Appreciation | | $ | 40,618,799 | | | $ | 35,448,733 | | | $ | 38,086,883 | | | $ | 12,168,710 | | | $ | 3,432,228 | |
| Depreciation | | | (515,219 | ) | | | (554,356 | ) | | | (463,855 | ) | | | (134,164 | ) | | | (50,264 | ) |
Net unrealized appreciation (depreciation) of investments | | $ | 40,103,580 | | | $ | 34,894,377 | | | $ | 37,623,028 | | | $ | 12,034,546 | | | $ | 3,381,964 | |
Permanent differences, primarily due to taxable market discount, resulted in reclassifications among the Funds’ components of net assets as of March 31, 2020, the Funds’ last tax year end.
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of March 31, 2020, the Funds’ last tax year end, were as follows:
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Undistributed net tax-exempt income1 | | $ | 1,349,119 | | | $ | 1,373,960 | | | $ | 990,133 | | | $ | 245,684 | | | $ | 113,001 | |
Undistributed net ordinary income2 | | | 35,909 | | | | 111,635 | | | | 25,730 | | | | 3,897 | | | | — | |
Undistributed net long-term capital gains | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
1
| Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on March 2, 2020, paid on April 1, 2020. |
2
| Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended March 31, 2020 was designated for purposes of the dividends paid deduction as follows:
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Distributions from net tax-exempt income | | $ | 8,859,987 | | | $ | 8,634,896 | | | $ | 6,723,526 | | | $ | 3,295,962 | | | $ | 1,852,487 | |
Distributions from net ordinary income2 | | | 188,598 | | | | 292,822 | | | | 86,256 | | | | — | | | | 7,913 | |
Distributions from net long-term capital gains | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
2
| Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
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Notes to Financial Statements (Unaudited) (continued)
As of March 31, 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.
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Not subject to expiration: | | | | | | | | | | | | | | | |
| Short-term | | $ | 398,444 | | | $ | 728,144 | | | $ | 116,131 | | | $ | 167,069 | | | $ | 1,038,943 | |
| Long-term | | | 3,528,578 | | | | 7,429,806 | | | | 1,559,386 | | | | — | | | | 249,313 | |
Total | | $ | 3,927,022 | | | $ | 8,157,950 | | | $ | 1,675,517 | | | $ | 167,069 | | | $ | 1,288,256 | |
During the Funds’ last tax year ended March 31, 2020, the Funds utilized capital loss carryforwards as follows:
| | | | | | | | | | | | | | | | |
| | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Utilized capital loss carryforwards | | $ | 597,278 | | | $ | 875,213 | | | $ | 456,024 | | | $ | 138,660 | | | $ | 22,370 | |
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for 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 Fund 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 NXP, is calculated according to the following schedule:
| | | | |
| | NXP | |
| Average Daily Net Assets* | | Fund-Level Fee Rate | |
For the first $125 million | | | 0.0500 | % |
For the next $125 million | | | 0.0375 | |
For the next $250 million | | | 0.0250 | |
For the next $500 million | | | 0.0125 | |
The annual fund-level fee, payable monthly, for each Fund (excluding NXP) is calculated according to the following schedule:
| | | | |
| | NXQ | |
| | NXR | |
| | NXC | |
| | NXN | |
| Average Daily Net Assets* | | Fund-Level Fee Rate | |
For the first $125 million | | | 0.1000 | % |
For the next $125 million | | | 0.0875 | |
For the next $250 million | | | 0.0750 | |
For the next $500 million | | | 0.0625 | |
For the next $1 billion | | | 0.0500 | |
For the next $3 billion | | | 0.0250 | |
For managed assets over $5 billion | | | 0.0125 | |
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The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Funds’ daily net assets:
| | | | |
| 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 | |
| |
| * For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the 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 a 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 managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen open-end and closed-end funds that constitute “eligible assets.” 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 not include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. As of September 30, 2020, the complex-level fee for each Fund was 0.1575%. |
Other Transactions with Affiliates
Each Fund is permitted to purchase or sell securities from or to certain other funds or accounts managed by the Sub-Adviser (“Affiliated Entity”) under specified conditions outlined in procedures adopted by the Board (“cross-trade”). These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to an Affiliated Entity by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 under the 1940 Act. These transactions are effected at the current market price (as provided by an independent pricing service) without incurring broker commissions.
During the current fiscal period, the Funds engaged in inter-fund trades pursuant to these procedures as follows:
| | | | | | | | | | | | | | | | |
| Inter-Fund Trades | | NXP | | | NXQ | | | NXR | | | NXC | | | NXN | |
Purchases | | $ | 1,556,554 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Sales | | | 564,651 | | | | 1,000,000 | | | | — | | | | — | | | | — | |
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% (1.00% prior to June 24, 2020) per annum or (b) the Fed Funds rate plus 1.25% (1.00% prior to June 24, 2020) per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
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Notes to Financial Statements (Unaudited) (continued)
During the current fiscal period, the Funds did not utilize this facility.
Inter-Fund Borrowing and Lending
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program.
The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
During the current reporting period, none of the Funds covered by this shareholder report have entered into any inter-fund loan activity.
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Changes Occurring During the Reporting Period
The following information in this semi-annual report is a summary of certain changes during the reporting period. This information may not reflect all of the changes that have occurred since you purchased shares of a Fund
Amended and Restated By-Laws
On October 5, 2020, after a rigorous and deliberative review, and consistent with the interests of each Fund’s long-term shareholders, the Board of Trustees of each Fund adopted Amended and Restated By-Laws.
Among other changes, the Amended and Restated By-Laws require compliance with certain amended deadlines and procedural and informational requirements in connection with advance notice of shareholder proposals or nominations, including certain information about the proponent and the proposal, or in the case of a nomination, the nominee. Any shareholder considering making a nomination or other proposal should carefully review and comply with those provisions of the Amended and Restated By-Laws.
The Amended and Restated By-Laws also include provisions (the “Control Share By-Law”) pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares of a Fund in a “Control Share Acquisition” may exercise voting rights with respect to such shares only to the extent the authorization of such voting rights is approved by other shareholders of the Fund. The Control Share By-Law is primarily intended to protect the interests of the Fund and its long-term shareholders by limiting the risk that the Fund will become subject to undue influence by opportunistic traders pursuing short-term agendas adverse to the best interests of the Fund and its long-term shareholders. The Control Share By-Law does not eliminate voting rights for common shares acquired in Control Share Acquisitions, but rather entrusts the Fund’s other “non-interested” shareholders with determining whether to approve the authorization of the voting rights of the person acquiring such shares.
Subject to various conditions and exceptions, the Control Share By-Law defines a “Control Share Acquisition” to include an acquisition of common shares that, but for the Control Share By-Law, would give the beneficial owner, upon the acquisition of such shares, the ability to exercise voting power in the election of Trustees of a Fund in any of the following ranges:
(i) one-tenth or more, but less than one-fifth of all voting power;
(ii) one-fifth or more, but less than one-third of all voting power;
(iii) one-third or more, but less than a majority of all voting power; or
(iv) a majority or more of all voting power.
The Control Share By-Law generally excludes certain acquisitions of common shares from the definition of a Control Share Acquisition, including acquisitions of common shares that occurred prior to October 5, 2020, though such shares are included in assessing whether any subsequent share acquisition exceeds one of the enumerated thresholds.
Subject to certain conditions and procedural requirements set forth in the Control Share By-Law, including the delivery of a “Control Share Acquisition Statement” to the Funds’ Secretary setting forth certain required information, a shareholder who obtains or proposes to obtain beneficial ownership of common shares in a Control Share Acquisition generally may demand a special meeting of shareholders for the purpose of considering whether the voting rights of such acquiring person with respect to such shares shall be authorized.
This discussion is only a high-level summary of certain aspects of the Amended and Restated By-Laws, and is qualified in its entirety by reference to the Amended and Restated By-Laws. Shareholders should refer to the Amended and Restated By-Laws for more information. A copy of the Amended and Restated By-Laws can be found in the Current Report on Form 8-K filed by the Funds with the Securities and Exchange Commission on October 6, 2020, which is available at www.sec.gov, and may also be obtained by writing to the Secretary of the Funds at 333 West Wacker Drive, Chicago, Illinois 60606.
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Additional FundInformation | | | | | | | | |
| Board of Trustees | | | | | | | |
Jack B. Evans | William C. Hunter | Albin F. Moschner | John K. Nelson | Judith M. Stockdale | Carole E. Stone |
Mathew Thornton III* | Terence J. Toth | Margaret L. Wolff | Robert L. Young | | | |
|
* Effective November 16, 2020
|
|
|
| Investment Adviser | Custodian | Legal Counsel | | Independent Registered | Transfer Agent and |
Nuveen Fund Advisors, LLC | | Chapman and Cutler LLP | Public Accounting Firm | Shareholder Services |
333 West Wacker Drive | & Trust Company | Chicago, IL 60603 | | KPMG LLP | | Computershare Trust |
Chicago, IL 60606 | One Lincoln Street | | | 200 East Randolph Street | Company, N.A. |
| Boston, MA 02111 | | | Chicago, IL 60601 | 150 Royall Street |
| | | | | | Canton, MA 02021 |
| | | | | | (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 InformationYou 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.
CEO Certification DisclosureEach Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share RepurchasesEach Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
| | | | | | |
| NXP | NXQ | NXR | NXC | NXN |
Common Shares repurchased | — | — | — | — | — |
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
| ■ | 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 market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
| ■ | 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. |
| ■ | Effective Leverage: Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in the fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. |
| ■ | Industrial Development Revenue Bond (IDR): A unique type of revenue bond issued by a state or local government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools. |
| ■ | Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside invest- ment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
| ■ | Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. |
| ■ | Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding. |
| ■ | Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| ■ | Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940. |
| ■ | S&P Municipal Bond California Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment grade California municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
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Glossary of Terms Used in this Report (continued)
| ■ | S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| ■ | S&P Municipal Bond New York Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment grade New York municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| ■ | Total Investment Exposure: Total investment exposure is a fund’s assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a fund’s use of preferred stock and borrowings and 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 a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities. |
| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
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Reinvest Automatically, Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment PlanNuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares. By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial professional or call us at (800) 257-8787.
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Annual Investment Management Agreement Approval Process
At a meeting held on May 19-21, 2020 (the “May Meeting”), the Boards of Trustees (collectively, the “Board” and each Trustee, a “Board Member”) of the Funds, which are comprised entirely of Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), approved, for their respective Fund, the renewal of the management agreement (each, an “Investment Management Agreement”) with Nuveen Fund Advisors, LLC (the “Adviser”) pursuant to which the Adviser serves as investment adviser to such Fund and the sub-advisory agreement (each, a “Sub-Advisory Agreement”) with Nuveen Asset Management, LLC (the “Sub-Adviser”) pursuant to which the Sub-Adviser serves as the investment sub-adviser to such Fund. Although the 1940 Act requires that continuances of the Advisory Agreements (as defined below) be approved by the in-person vote of a majority of the Independent Board Members, the May Meeting was held virtually through the internet in view of the health risks associated with holding an in-person meeting during the COVID-19 pandemic and governmental restrictions on gatherings. The May Meeting was held in reliance on an order issued by the Securities and Exchange Commission on March 13, 2020, as extended on March 25, 2020, which provided registered investment companies temporary relief from the in-person voting requirements of the 1940 Act with respect to the approval of a fund’s advisory agreement in response to the challenges arising in connection with the COVID-19 pandemic.
Following up to an initial two-year period, the Board considers the renewal of each Investment Management Agreement and Sub-Advisory Agreement on behalf of the applicable Fund on an annual basis. The Investment Management Agreements and Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements” and the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser.” Throughout the year, the Board and its committees meet regularly and, at these meetings, review an extensive array of topics and information that are relevant to its annual consideration of the renewal of the advisory agreements for the Nuveen funds. Such information may address, among other things, fund performance; the Adviser’s strategic plans; the review of the funds and investment teams; compliance, regulatory and risk management matters; the trading practices of the various sub-advisers to the funds; valuation of securities; fund expenses; overall market and regulatory developments; the management of leverage financing; and the secondary market trading of the closed-end funds and any actions to address discounts.
In addition to the information and materials received during the year, the Board, in response to a request made on its behalf by independent legal counsel, received extensive materials and information prepared specifically for its annual consideration of the renewal of the advisory agreements for the Nuveen funds by the Adviser and by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data. The materials cover a wide range of topics including, but not limited to, a description of the nature, extent and quality of services provided by the Fund Advisers; a review of each sub-adviser to the Nuveen funds and the applicable investment teams; an analysis of fund performance in absolute terms and as compared to the performance of certain peer funds and benchmarks with a focus on any performance outliers; an analysis of the fees and expense ratios of the Nuveen funds in absolute terms and as compared to those of certain peer funds with a focus on any expense outliers; a description of portfolio manager compensation; a review of the secondary market trading of shares of the Nuveen closed-end funds (including, among other things, an analysis of performance, distribution and valuation and capital raising trends in the broader closed-end fund market and in particular with respect to Nuveen closed-end funds; a review of the leverage management actions taken on behalf of the Nuveen closed-end funds and their resulting impact on performance; and a description of the distribution management process and any capital management activities); a review of the performance of various service providers; a description of various initiatives Nuveen had undertaken or continued during the year for the benefit of particular fund(s) and/or the complex; a description of the profitability or financial data of Nuveen and the sub-advisers to the Nuveen funds; and a description of indirect benefits received by the Adviser and the sub-advisers as a result of their relationships with the Nuveen funds.
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In continuing its practice, the Board met prior to the May Meeting to begin its considerations of the renewal of the Advisory Agreements. Accordingly, on April 27-28, 2020 (the “April Meeting”), the Board met to review and discuss, in part, the performance of the Nuveen funds and the Adviser’s evaluation of each sub-adviser to the Nuveen funds. In its review, the Board recognized the volatile market conditions occurring during the first half of 2020 arising, in part, from the public health crisis caused by the novel coronavirus known as COVID-19 and the resulting impact on fund performance. Accordingly, the Board reviewed, among other things, fund performance reflecting the more volatile periods, including for various time periods ended the first quarter of 2020 and for various time periods ended April 17, 2020. At the April Meeting, the Board Members asked questions and requested additional information that was provided for the May Meeting. In continuing its review of the Nuveen funds in light of the extraordinary market conditions experienced in early 2020, the Board received updated fund performance data reflecting various time periods ended May 8, 2020 for its May Meeting. The Board also continued its practice of seeking to meet periodically with the various sub-advisers to the Nuveen funds and their investment teams, when feasible.
The Independent Board Members considered the review of the advisory agreements for the Nuveen funds to be an ongoing process and employed the accumulated information, knowledge, and experience the Board Members had gained during their tenure on the boards governing the Nuveen funds and working with the Adviser and sub-advisers in their review of the advisory agreements. The contractual arrangements are a result of multiple years of review, negotiation and information provided in connection with the boards’ annual review of the Nuveen funds’ advisory arrangements and oversight of the Nuveen funds.
The Independent Board Members were advised by independent legal counsel during the annual review process as well as throughout the year, including meeting in executive sessions with such counsel at which no representatives from the Adviser or the Sub-Adviser were present. In connection with their annual review, the Independent Board Members also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements.
The Board’s decision to renew the Advisory Agreements was not based on a single identified factor, but rather the decision reflected the comprehensive consideration of all the information provided throughout the year and at the April and May Meetings, and each Board Member may have attributed different levels of importance to the various factors and information considered in connection with the approval process. The following summarizes the principal factors and information, but not all the factors, the Board considered in deciding to renew the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund with particular focus on the services and enhancements to such services provided during the last year. The Independent Board Members considered the Investment Management Agreements and the Sub-Advisory Agreements separately in the course of their review. With this approach, they considered the respective roles of the Adviser and the Sub-Adviser in providing services to the Funds.
With respect to the Adviser, the Board recognized that the Adviser has provided a vast array of services the scope of which has expanded over the years in light of regulatory, market and other developments, such as the development of expanded compliance programs for the Nuveen funds. The Board also noted the extensive resources, tools and capabilities the Adviser and its affiliates devoted to the various operations of the Nuveen funds. These services include, but are not limited to: investment oversight, risk management and securities valuation services (such as analyzing investment performance and risk data; overseeing and reviewing the various sub-advisers to the Nuveen funds and their investment teams; overseeing trade execution, soft dollar practices and securities lending activities; providing daily valuation services and developing related valuation policies, procedures and methodologies; overseeing risk disclosure; periodic testing of investment and liquidity risks; participating in financial statement and marketing disclosures; participating in product development; and participating in leverage management and liquidity monitoring); product management (such as analyzing a fund’s position in the marketplace,
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Annual Investment Management Agreement Approval Process (continued)
setting dividends, preparing shareholder and intermediary communications and other due diligence support); fund administration (such as preparing fund tax returns and other tax compliance services, overseeing the funds’ independent public accountants and other service providers; managing fund budgets and expenses; and helping to fulfill the funds’ regulatory filing requirements); oversight of shareholder services and transfer agency functions (such as overseeing transfer agent service providers which include registered shareholder customer service and transaction processing; and overseeing proxy solicitation and tabulation services); Board relations services (such as organizing and administering Board and committee meetings, preparing various reports to the Board and committees and providing other support services); compliance and regulatory oversight services (such as devising compliance programs; managing compliance policies; monitoring compliance with applicable fund policies and laws and regulations; and evaluating the compliance programs of the various sub-advisers to the Nuveen funds and certain other service providers); legal support and oversight of outside law firms (such as helping to prepare and file registration statements and proxy statements; overseeing fund activities and providing legal interpretations regarding such activities; and negotiating agreements with other fund service providers); and providing leverage, capital and distribution management services.
The Board also recognized that the Adviser and its affiliates have undertaken a number of initiatives over the previous year that benefited the complex and/or particular Nuveen funds including, but not limited to:
• Fund Improvements and Product Management Initiatives – continuing to proactively manage the Nuveen fund complex as a whole and at the individual fund level with an aim to enhance the shareholder outcomes through, among other things, rationalizing the product line and gaining efficiencies through mergers, repositionings and liquidations; reviewing and updating investment policies and benchmarks; and integrating certain investment teams and changing the portfolio managers serving various funds;
• Capital Initiatives – continuing to invest capital to support new Nuveen funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds;
• Compliance Program Initiatives – continuing efforts to mitigate compliance risk, increase operating efficiencies, strengthen key compliance program elements and support international business growth and other objectives through, among other things, integrating various investment teams across affiliates, consolidating marketing review functions, enhancing compliance related technologies and establishing and maintaining shared broad-based compliance policies throughout the organization and its affiliates;
• Risk Management and Valuation Services - continuing efforts to provide Nuveen with a more disciplined and consistent approach to identifying and mitigating the firm’s operational risks through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates and adopting a risk operational framework across the complex;
• Regulatory Matters – continuing efforts to monitor regulatory trends and advocate on behalf of the Nuveen funds, to implement and comply with new or revised rules and mandates and to respond to regulatory inquiries and exams;
• Government Relations – continuing efforts of various Nuveen teams and affiliates to develop policy positions on a broad range of issues that may impact the Nuveen funds, advocate and communicate these positions to lawmakers and other regulatory authorities and work with trade associations to ensure these positions are represented;
• Business Continuity, Disaster Recovery and Information Services – continuing to periodically test business continuity and disaster recovery plans, maintain an information security program designed to identify and manage information security risks, and provide reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, potential impact of new or revised laws and regulations, incident tracking and other relevant information technology risk-related reports;
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• Expanded Dividend Management Services – continuing to manage the dividends among the varying types of Nuveen funds within the Nuveen complex to be consistent with the respective fund’s product design and investing resources to develop systems to assist in the process for newer products such as target term funds; and
• with respect specifically to closed-end funds, such initiatives also included:
•• Leverage Management Services – continuing to actively manage leverage including developing new leverage instruments, managing leverage exposure and costs through various providers, and managing and adapting tender option bond structures to comply with regulations and developing further relationships with leverage providers;
•• Capital Management, Market Intelligence and Secondary Market Services – ongoing capital management efforts through shelf offerings, share repurchases as appropriate to address discounts, tender offers and capital return programs as well as providing market data analysis to help understand closed-end fund ownership cycles and their impact on secondary market trading as well as to improve proxy solicitation efforts; and
•• Closed-end Fund Investor Relations Program – maintaining the closed-end fund investor relations program which, among other things, raises awareness, provides educational materials and cultivates advocacy for closed-end funds and the Nuveen closed-end fund product line.
The Board also noted the benefits to shareholders of investing in a Nuveen fund, as each Nuveen fund is a part of a large fund complex with a variety of investment disciplines, capabilities, expertise and resources available to navigate and support the funds including during stressed times as occurred in the market in the first half of 2020. In addition to the services provided by the Adviser, the Board also considered the risks borne by the Adviser and its affiliates in managing the Nuveen funds, including entrepreneurial, operational, reputational, regulatory and litigation risks.
The Board further considered the division of responsibilities between the Adviser and the Sub-Adviser and recognized that the Sub-Adviser and its investment personnel generally are responsible for the management of each Fund’s portfolio under the oversight of the Adviser and the Board. The Board considered an analysis of the Sub-Adviser provided by the Adviser which included, among other things, the Sub-Adviser’s assets under management and changes thereto, a summary of the applicable investment team and changes thereto, the investment approach of the team and the performance of the funds sub-advised by the Sub-Adviser over various periods. The Board further considered at the May Meeting or prior meetings evaluations of the Sub-Adviser’s compliance program and trade execution. The Board also considered the structure of investment personnel compensation programs and whether this structure provides appropriate incentives to act in the best interests of the respective Nuveen funds. The Board noted that the Adviser recommended the renewal of the Sub-Advisory Agreements.
Based on its review, the Board determined, in the exercise of its reasonable business judgment, that it was satisfied with the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement.
B. The Investment Performance of the Funds and Fund Advisers
In evaluating the quality of the services provided by the Fund Advisers, the Board also received and considered a variety of investment performance data of the Nuveen funds they advise. In this regard, the Board reviewed, among other things, Fund performance over the quarter, one-, three- and five-year periods ending December 31, 2019. Unless otherwise indicated, the performance data referenced below reflects the periods ended December 31, 2019. In general, the year 2019 was a period of strong market performance. However, as noted above, the Board recognized the unprecedented market volatility and decline that occurred in early 2020 and the significant impact it would have on fund performance. As a result, the Board reviewed performance data capturing more recent time periods, including performance data reflecting the first quarter of 2020 as well as performance data for various periods ended April 17, 2020 for its April Meeting and May 8, 2020 for its May Meeting.
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Annual Investment Management Agreement Approval Process (continued)
The Board reviewed both absolute and relative fund performance during the annual review over the various time periods. With respect to the latter, the Board considered fund performance in comparison to the performance of peer funds (the “Performance Peer Group”) and recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks). For funds that had changes in portfolio managers, the Board considered performance data of such funds before and after such changes. In considering performance data, the Board is aware of certain inherent limitations with such data, including that differences between the objective(s), strategies and other characteristics of the Nuveen funds compared to the respective Performance Peer Group and/or benchmark(s) (such as differences in the use of leverage) as well as differences in the composition of the Performance Peer Group over time will necessarily contribute to differences in performance results and limit the value of the comparative information. To assist the Board in its review of the comparability of the relative performance, the Adviser has ranked the relevancy of the peer group to the funds as low, medium or high.
As noted above, the Board reviewed fund performance over various periods ended December 31, 2019 as well as the first quarter of 2020 and various time periods ended April 17, 2020 and May 8, 2020. In light of the significant market decline in the early part of 2020, the Board noted that a shorter period of underperformance may significantly impact longer term performance. Further, the Board recognized that performance data may differ significantly depending on the ending date selected and accordingly, performance results for periods ended at the year-end of 2019 may vary significantly from performance results for periods ended in the first quarter of 2020, particularly given the extraordinary market conditions at that time as the impact of COVID-19 and other market developments unfolded. The Board considered a fund’s performance in light of the overall financial market conditions. In addition, the Board recognized that shareholders may evaluate performance based on their own holding periods which may differ from the periods reviewed by the Board and lead to differing results.
The secondary market trading of shares of the Nuveen closed-end funds continues to be a priority for the Board given its importance to shareholders, and therefore data reflecting the premiums and discounts at which the shares of the closed-end funds trade is reviewed by the Board during its annual review and by the Board and/or its Closed-end Fund committee during its respective quarterly meetings throughout the year.
In addition to the performance data prepared in connection with the annual review of the advisory agreements of the Nuveen funds, the Board reviewed fund performance throughout the year at its quarterly meetings representing differing time periods and took into account the discussions that occurred at these Board meetings in evaluating a fund’s overall performance. The Board also considered, among other things, the Adviser’s analysis of each Nuveen fund’s performance, with particular focus on funds that were considered performance outliers (both overperformance and underperformance), the factors contributing to the performance and any steps taken to address any performance concerns. Given the volatile market conditions of early 2020, the Board considered the Adviser’s analysis of the impact of such conditions on the Nuveen funds’ performance.
The Board evaluated performance in light of various factors, including general market conditions, issuer-specific information, asset class information, fund cash flows and other factors. Accordingly, depending on the facts and circumstances, the Board may be satisfied with a fund’s performance notwithstanding that its performance may be below its benchmark or peer group for certain periods. However, with respect to any Nuveen funds for which the Board had identified performance issues, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers whether any steps are necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
The Board’s determinations with respect to each Fund are summarized below.
For Nuveen Select Tax-Free Income Portfolio, the Board noted that the Fund outperformed its benchmark and ranked in the first quartile of its Performance Peer Group for the one-, three- and five-year periods ended December 31, 2019. With the market decline in the first quarter of 2020, the Fund continued to outperform its benchmark and ranked in the first quartile of its Performance Peer Group for the one-, three- and five-year periods ended March 31, 2020. In its review, the Board, however,
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noted that the Performance Peer Group was classified as low for relevancy. The Board was satisfied with the Fund’s overall performance.
For Nuveen Select Tax-Free Income Portfolio 2, the Board noted that the Fund outperformed its benchmark and ranked in the second quartile of its Performance Peer Group for the one-, three- and five-year periods ended December 31, 2019. With the market decline in the first quarter of 2020, the Fund continued to outperform its benchmark and ranked in the second quartile of its Performance Peer Group for the one-, three- and five-year periods ended March 31, 2020. In its review, the Board, however, noted that the Performance Peer Group was classified as low for relevancy. The Board was satisfied with the Fund’s overall performance.
For Nuveen Select Tax-Free Income Portfolio 3, the Board noted that the Fund outperformed its benchmark and ranked in the first quartile of its Performance Peer Group for the one-, three- and five-year periods ended December 31, 2019. With the market decline in the first quarter of 2020, the Fund continued to outperform its benchmark and ranked in the first quartile of its Performance Peer Group for the one-, three- and five-year periods ended March 31, 2020. In its review, the Board, however, noted that the Performance Peer Group was classified as low for relevancy. The Board was satisfied with the Fund’s overall performance.
For Nuveen California Select Tax-Free Income Portfolio, the Board noted that the Fund outperformed its benchmark for the one-, three- and five-year periods ended December 31, 2019. Although the Fund ranked in the fourth quartile of its Performance Peer Group for the one-year period ended December 31, 2019, the Fund ranked in the third quartile of its Performance Peer Group for the three-year period and second quartile of its Performance Peer Group for the five-year period ended December 31, 2019. The Board, however, recognized that the Performance Peer Group was classified as low for relevancy, in part, due to the use of leverage by various peers in the Performance Peer Group. With the market decline in the first quarter of 2020, the Fund outperformed its benchmark for the one-, three- and five-year periods ended March 31, 2020. The Fund further ranked in the first quartile of its Performance Peer Group for the one-year period ended March 31, 2020 and second quartile of its Performance Peer Group for the three- and five-year periods ended March 31, 2020. The Board was satisfied with the Fund’s overall performance.
For Nuveen New York Select Tax-Free Income Portfolio, the Board noted that the Fund ranked in the fourth quartile of its Performance Peer Group for the one- three- and five-year periods ended December 31, 2019. In its review, the Board, however, noted that the Performance Peer Group was classified as low for relevancy, in part, due to the use of leverage by certain peers in the Performance Peer Group. The Fund, however, outperformed its benchmark for the one-, three- and five-year periods ended December 31, 2019. With the market decline in the first quarter of 2020, the Fund’s performance was below the performance of its benchmark for the one- and five-year periods ended March 31, 2020, but the Fund outperformed its benchmark for the three-year period ended March 31, 2020. The Fund also ranked in the second quartile of its Performance Peer Group for the one-year period ended March 31, 2020, the third quartile for the three-year period ended March 31, 2020 and fourth quartile for the five-year period ended March 31, 2020. The Board was satisfied with the Fund’s overall performance.
C. Fees, Expenses and Profitability
1. Fees and Expenses
As part of its annual review, the Board considered the contractual management fee and net management fee (the management fee after taking into consideration fee waivers and/or expense reimbursements, if any) paid by a Nuveen fund to the Adviser in light of the nature, extent and quality of the services provided. The Board also considered the total operating expense ratio of each Nuveen fund before and after any fee waivers and/or expense reimbursements. More specifically, the Independent Board Members reviewed, among other things, each fund’s gross and net management fee rates (i.e., before and after expense reimbursements and/or fee waivers, if any) and net total expense ratio in relation to those of a comparable universe of funds (the “Peer Universe”) established by Broadridge. The Independent Board Members reviewed the methodology Broadridge employed
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Annual Investment Management Agreement Approval Process (continued)
to establish its Peer Universe and recognized that differences between the applicable fund and its respective Peer Universe as well as changes to the composition of the Peer Universe from year to year may limit some of the value of the comparative data. The Independent Board Members also considered a fund’s operating expense ratio as it more directly reflected the shareholder’s costs in investing in the respective fund.
In their review, the Independent Board Members considered, in particular, each Nuveen fund with a net expense ratio (excluding investment-related costs of leverage) of six basis points or higher compared to that of its peer average (each, an “Expense Outlier Fund”) and an analysis as to the factors contributing to each such fund’s higher relative net expense ratio. In addition, although the Board reviewed a fund’s total net expenses both including and excluding investment-related expenses (i.e., leverage costs) and taxes for certain of the closed-end funds, the Board recognized that leverage expenses will vary across funds and in comparison to peers because of differences in the forms and terms of leverage employed by the respective fund. Accordingly, in reviewing the comparative data between a fund and its peers, the Board generally considered the fund’s net expense ratio and fees (excluding leverage costs and leveraged assets) to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Universe. The Independent Board Members also considered, in relevant part, a fund’s net management fee and net total expense ratio in light of its performance history.
In their review of the fee arrangements for the Nuveen funds, the Independent Board Members considered the management fee schedules, including the complex-wide and fund-level breakpoint schedules. The Board noted that across the Nuveen fund complex, the complex-wide fee breakpoints reduced fees by $56.6 million and fund-level breakpoints reduced fees by $66.8 million in 2019.
With respect to the Sub-Adviser, the Board also considered the sub-advisory fee schedule paid to the Sub-Adviser in light of the sub-advisory services provided to the respective Fund, the breakpoint schedule and comparative data of the fees the Sub-Adviser charges to other clients, if any. In its review, the Board recognized that the compensation paid to the Sub-Adviser is the responsibility of the Adviser, not the Funds.
The Independent Board Members noted that each Fund had a net management fee and a net expense ratio that were below the respective peer averages.
Based on its review of the information provided, the Board determined that each Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
In determining the appropriateness of fees, the Board also considered information regarding the fee rates the respective Fund Advisers charged to certain other types of clients and the type of services provided to these other clients. With respect to the Adviser and/or the Sub-Adviser, such other clients may include retail and institutional managed accounts, passively managed exchange-traded funds (“ETFs”) sub-advised by the Sub-Adviser but that are offered by another fund complex and municipal managed accounts offered by an unaffiliated adviser. With respect to the Sub-Adviser, the Board reviewed, among other things, the fee range and average fee of municipal retail wrap accounts and municipal institutional accounts.
In considering the fee data of other clients, the Board considered, among other things, the differences in the amount, type and level of services provided to the Nuveen funds relative to other clients as well as the differences in portfolio investment policies, investor profiles, account sizes and regulatory requirements, all of which contribute to the variations in the fee schedules. The Board recognized the complexity and myriad of services the Adviser had provided to the Nuveen funds compared to the other types of clients as the Adviser is principally responsible for all aspects of operating the funds, including complying with the increased regulatory requirements required when managing the funds as well as the increased entrepreneurial, legal and regulatory risks that the Adviser incurs in sponsoring and managing the funds. Further, with respect to ETFs, the Board considered that Nuveen ETFs are passively managed compared to the active management of the other Nuveen funds which
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contributed to the differences in fee levels between the Nuveen ETFs and other Nuveen funds. In general, higher fee levels reflect higher levels of service provided by the Adviser, increased investment management complexity, greater product management requirements, and higher levels of business risk or some combination of these factors. The Board further considered that the Sub-Adviser’s fee is essentially for portfolio management services and therefore more comparable to the fees it receives for retail wrap accounts and other external sub-advisory mandates. The Board concluded the varying levels of fees were justified given, among other things, the inherent differences in the products and the level of services provided to the Nuveen funds versus other clients, the differing regulatory requirements and legal liabilities and the entrepreneurial, legal and regulatory risks incurred in sponsoring and advising a registered investment company.
3. Profitability of Fund Advisers
In their review, the Independent Board Members considered information regarding Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2019 and 2018. The Board reviewed, among other things, Nuveen’s net margins (pre-tax) (both including and excluding distribution expenses); gross and net revenue margins (pre- and post-tax); revenues, expenses, and net income (pre-tax and after-tax and before distribution) of Nuveen for fund advisory services; and comparative profitability data comparing the margins of Nuveen compared to the adjusted margins of certain peers with publicly available data and with the most comparable assets under management (based on asset size and asset composition) for each of the last two calendar years. The Board also reviewed the revenues and expenses the Adviser derived from its ETF product line for the 2018 and 2019 calendar years.
In reviewing the profitability data, the Independent Board Members recognized the subjective nature of calculating profitability as the information is not audited and is dependent on cost allocation methodologies to allocate expenses of Nuveen and its affiliates between the fund and non-fund businesses. The expenses to be allocated include direct expenses in servicing the Nuveen funds as well as indirect and/or shared costs (such as overhead, legal and compliance) some of which are attributed to the Nuveen funds pursuant to the cost allocation methodologies. The Independent Board Members reviewed a description of the cost allocation methodologies employed to develop the financial information and a summary of the history of changes to the methodology over the eleven-year period from 2008 to 2019. The Board had also appointed three Independent Board Members, along with the assistance of independent counsel, to serve as the Board’s liaisons to review the development of the profitability data and any proposed changes to the cost allocation methodology prior to incorporating any such changes and to report to the full Board. The Board recognized that other reasonable and valid allocation methodologies could be employed and could lead to significantly different results. Based on the data, the Independent Board Members noted that Nuveen’s net margins were higher in 2019 than the previous year and considered the key drivers behind the revenue and expense changes that impacted Nuveen’s net margins between the years. The Board also noted the reinvestments of some of the profits into the business through, among other things, the investment of seed capital in certain funds and continued investments in enhancements to information technology, internal infrastructure and data management improvements and global investment and innovation projects.
As noted above, the Independent Board Members also considered Nuveen’s margins from its relationship to the Nuveen funds compared to the adjusted margins of certain peers with publicly available data and with the most comparable assets under management (based on asset size and asset composition) to Nuveen for the calendar years 2019 and 2018. The Independent Board Members noted that Nuveen’s margins from its relationships with the Nuveen funds were on the low range compared to the adjusted margins of the peers. The Independent Board Members, however, recognized that it is difficult to make comparisons of profitability with other investment adviser peers given that comparative data is not generally public and the calculation of profitability is subjective and affected by numerous factors (such as types of funds a peer manages, its business mix, its cost of capital, the numerous assumptions underlying the methodology used to allocate expenses and other factors) which can have a significant impact on the results.
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Annual Investment Management Agreement Approval Process (continued)
Aside from Nuveen’s profitability, the Board recognized that the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). As such, the Board also reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves for the 2019 and 2018 calendar years to consider the financial strength of TIAA. The Board recognized the benefit of having an investment adviser and its parent with significant resources, particularly during periods of market stress.
In addition to Nuveen, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationships with the Nuveen funds. In this regard, the Independent Board Members reviewed, among other things, the Sub-Adviser’s revenues, expenses and net revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2019 as well as its pre-tax and after-tax net revenue margins for 2019 compared to such margins for 2018. The Independent Board Members also reviewed a profitability analysis reflecting the revenues, expenses and revenue margin (pre-and post-tax) by asset type for the Sub-Adviser for the calendar year ended December 31, 2019 and the pre- and post-tax revenue margins from 2019 and 2018.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered any other ancillary benefits derived by the respective Fund Adviser from its relationship with the Nuveen funds as discussed in further detail below.
Based on a consideration of all the information provided, the Board noted that Nuveen’s and the Sub-Adviser’s level of profitability was acceptable and not unreasonable in light of the services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Board considered whether there have been economies of scale with respect to the management of the Nuveen funds and whether these economies of scale have been appropriately shared with the funds. The Board recognized that although economies of scale are difficult to measure, there are several methods to help share the benefits of economies of scale, including breakpoints in the management fee schedule, fee waivers and/or expense limitations, the pricing of Nuveen funds at scale at inception and investments in Nuveen’s business which can enhance the services provided to the funds for the fees paid. The Board noted that Nuveen generally has employed these various methods. In this regard, the Board noted that the management fee of the Adviser is generally comprised of a fund-level component and a complex-level component each with its own breakpoint schedule, subject to certain exceptions. The Board reviewed the fund-level and complex-level fee schedules. The Board considered that the fund-level breakpoint schedules are designed to share economies of scale with shareholders if the particular fund grows, and the complex-level breakpoint schedule is designed to deliver the benefits of economies of scale to shareholders when the eligible assets in the complex pass certain thresholds even if the assets of a particular fund are unchanged or have declined. With respect to the Nuveen closed-end funds, the Board noted that, although such funds may from time to time make additional share offerings, the growth of their assets would occur primarily through the appreciation of such funds’ investment portfolios. Further, in the calculation of the complex-level component, the Board noted that it had approved the acquisition of several Nuveen funds by similar TIAA-CREF funds in 2019. However, to mitigate the loss of the assets of these Nuveen funds deemed eligible to be included in the calculation of the complex-wide fee when these Nuveen funds left the complex upon acquisition, Nuveen agreed to credit approximately $460 million to assets under management to the Nuveen complex in calculating the complex-wide component.
The Independent Board Members also recognized the Adviser’s continued reinvestment in its business through, among other things, investments in its business infrastructure and information technology, portfolio accounting system and other systems and platforms that will, among other things, support growth, simplify and enhance information sharing, and enhance the investment process to the benefit of all of the Nuveen funds.
Based on its review, the Board concluded that the current fee arrangements together with the Adviser’s reinvestment in its business appropriately shared any economies of scale with shareholders.
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E. Indirect Benefits
The Independent Board Members received and considered information regarding other benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds. The Board considered the compensation that an affiliate of the Adviser received for serving as co-manager in the initial public offerings of new closed-end funds and for serving as an underwriter on shelf offerings of existing closed-end funds. In addition, the Independent Board Members also noted that various sub-advisers (including the Sub-Adviser) may engage in soft dollar transactions pursuant to which they may receive the benefit of research products and other services provided by broker-dealers executing portfolio transactions on behalf of the applicable Nuveen funds, although the Board recognized that certain sub-advisers may be phasing out the use of soft dollars over time.
The Board, however, noted that the benefits for the Sub-Adviser when transacting in fixed-income securities may be more limited as such securities generally trade on a principal basis and therefore do not generate brokerage commissions. Further, the Board considered that although the Sub-Adviser may benefit from the receipt of research and other services that it may otherwise have to pay for out of its own resources, the research may also benefit the Nuveen funds to the extent it enhances the ability of the Sub-Adviser to manage such funds or is acquired through the commissions paid on portfolio transactions of other clients.
Based on its review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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Notes
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Notes
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Nuveen:
Serving Investors for Generations
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Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
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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.
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ESA-B-0920D 1402030-INV-B-11/21
