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Table of Contents
| | |
Chair’s Letter to Shareholders | 4 |
| | |
Portfolio Manager’s Comments | 5 |
| | |
Common Share Information | 7 |
| | |
Risk Considerations | 9 |
| | |
Performance Overview and Holding Summaries | 10 |
| | |
Shareholder Meeting Report | 12 |
| | |
Portfolio of Investments | 13 |
| | |
Statement of Assets and Liabilities | 30 |
| | |
Statement of Operations | 31 |
| | |
Statement of Changes in Net Assets | 32 |
| | |
Financial Highlights | 34 |
| | |
Notes to Financial Statements | 36 |
| | |
Additional Fund Information | 42 |
| | |
Glossary of Terms Used in this Report | 43 |
| | |
Reinvest Automatically, Easily and Conveniently | 44 |
| | |
Annual Investment Management Agreement Approval Process | 45 |
3
Chair’s Letter
to Shareholders
Dear Shareholders,
Financial markets have been receiving mixed messages this year. The global economy has bifurcated, split between a slumping manufacturing sector and a resilient consumer. Confidence has been weakening among corporate managements, who are wary of trade frictions and moderating global growth, but has remained elevated among consumers, who have benefited from tight labor markets and growing wages. Corporate profits are shrinking, and earnings forecasts are being downgraded. A more pessimistic growth outlook has driven interest rates to historically low levels. Yet, stock market indexes have overcome periodic volatility to touch historical highs.
Slower growth and amplified market volatility are likely to be expected in a late cycle economy. Although unpredictable geopolitics such as trade and Brexit have been a source of market anxiety, some clarity on these issues could be a potential source of upside. Furthermore, barring an exogenous shock, we believe the likelihood of a near-term recession remains low. The U.S. economy slowed in the third quarter but by less than expected, and other recent economic indicators appear to be stabilizing. Low unemployment and wage growth continue to be favorable for consumers, who represent the largest driver of the economy. The low interest rate environment should encourage businesses and consumers to borrow at lower rates while markets have been encouraged by the expectation of easier financial conditions. Although Europe’s economies presently look more vulnerable to recession and China’s growth has slowed to a near three-decade low, policy makers there remain committed to using their available tools.
At Nuveen, we still see investment opportunities in the maturing economic environment, but we are taking a selective approach. If you’re concerned about where the markets are headed from here, we encourage you to work with your financial advisor to review your time horizon, risk tolerance and investment goals. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence J. Toth
Chair of the Board
November 22, 2019
4
Portfolio Manager’s Comments
Nuveen Select Maturities Municipal Fund (NIM)
This Fund features portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen, LLC. Portfolio manager Paul L. Brennan, CFA, reviews key investment strategies and the six-month performance of the Nuveen Select Maturities Municipal Fund (NIM). Paul has managed NIM since 2006.
What key strategies were used to manage NIM during the six-month reporting period ended September 30, 2019?
The Fund's primary investment objective is current income exempt from regular federal income tax, consistent with the preservation of capital. Its secondary objective is the enhancement of portfolio value. The Fund invests in municipal securities that are exempt from federal income taxes. The Fund invests in municipal securities of varying maturities targeting an overall intermediate duration profile.
Municipal bonds gained in the six-month reporting period, led by lower rated and longer duration structures. Interest rates declined significantly in the reporting period as the Federal Reserve cut its policy rate twice, so far, in 2019, a reversal of its rate-raising stance throughout 2018, to help extend the economic cycle. Municipal bond prices rose as yields fell, most prominently at the longer end of the yield curve. Favorable credit fundamentals and a supply-demand imbalance further aided municipal bond performance. A notable trend in 2019 so far has been the record pace of inflows into municipal bond funds.
The Fund’s overall positioning remained relatively unchanged during the reporting period, emphasizing intermediate maturities, lower rated credits and sectors offering higher yields. Trading activity was relatively light in this reporting period, driven primarily by the reinvestment of call and maturity proceeds. We were comfortable with the Fund’s overall positioning, and the scarcity of relative value in the prevailing market conditions provided fewer opportunities to enhance the portfolio’s income and/or total return prospects. We participated in a large health care issuance for CommonSpirit, formed from a merger between two large Catholic health care systems and a new issue for Metropolitan Transportation Authority in New York, which offered attractive price concessions. We also added selectively to the Fund’s high yield, below investment grade rated exposure, with the purchase of Puerto Rico sales tax bonds (known as COFINAs), Puerto Rico Aqueduct and Sewer Authority (PRASA) bonds and Virgin Trains USA. These credits were issued after Brightline Trains refinanced its prior debt, which we owned and was subsequently renamed Virgin Trains USA.
The proceeds from called and maturing bonds provided most of the cash to invest in new bonds. Because NIM is an intermediate maturity Fund, it typically has a greater number of bonds maturing or being called than funds with longer average maturity targets.
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 manager 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 Fund disclaims 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 Manager’s Comments (continued)
How did the Fund perform for the six-month reporting period ended September 30, 2019?
The table in the Fund’s Performance Overview and Holding Summaries section of this report provides the Fund’s total returns for the six-month, one-year, five-year and ten-year periods ended September 30, 2019. The Fund’s returns on common share net asset value (NAV) are compared with the performance of corresponding market index.
For the six months ended September 30, 2019, the total return on net asset value (NAV) for NIM outperformed the return for the S&P Municipal Bond Intermediate Index.
The sizeable move in interest rates during the reporting period was a major driver of municipal bond performance. The Fund’s duration was shorter than the benchmark’s, which meant the Fund didn’t fully benefit from falling interest rates, while a small overweight to longer maturity bonds, which outperformed the market as the yield curve flattened, was a modestly positive contributor.
From a credit quality standpoint, the Fund was well positioned. The Fund’s overweight allocations to single A and lower (including below investment grade) rated bonds benefited as these ratings categories performed well. Credit fundamentals have remained favorable amid the moderate pace of economic growth while investor demand for higher yielding investments and municipal bonds in general has continued to support performance.
Sector allocation and credit selection showed mixed results in this reporting period. The better performing sectors were those with a higher proportion of lower rated bonds such as toll roads, tax-supported and water/sewer. Within the three sectors, some of the Fund’s best performing positions were Chicago Board of Education, which oversees Chicago Public Schools, American Dream Meadowlands, a mega-mall and entertainment complex in New Jersey and Puerto Rico COFINA and PRASA bonds. The tobacco securitization sector, which is also predominantly composed of lower rated bonds, rebounded from a bout of weakness at the end of 2018. The Fund owned proportionately more higher rated tobacco securitization bonds, but these holdings still performed well. The Fund’s small allocation in housing bonds, which were higher credit quality, were positive contributors as well.
Conversely, an overweight allocation to pre-refunded bonds detracted from performance as high quality, short-maturity paper underperformed. Three of the Fund’s industrial development revenue (IDR) bonds, which were among the larger weightings in the portfolio, were notable laggards. FirstEnergy Solutions continued to make progress in exiting the bankruptcy process, but news of a delay prompted investors to sell after a recent run of strong outperformance. Virgin Trains USA declined due to a slower than expected ramp-up in initial passenger traffic and a large bond issuance to finance the next phase, which extends the train line to Orlando. The Denver International Airport Great Hall Project, a public-private partnership renovating one of its terminals, struggled with project delays and cost overruns, which led the city to terminate its contract with the developer. Weakness in these holdings was partially offset by stronger performing IDR positions, including Westlake Chemical and Hawaii Electric Company and Waste Management. Illinois paper also had uneven performance in the reporting period. Illinois general obligation bonds were under pressure as a lawsuit challenging the validity of certain issues caused credit spreads to widen, despite an Illinois judge ruling the suit could not proceed in court.
6
Common Share Information
DISTRIBUTION INFORMATION
The following information regarding the Fund’s distributions is current as of September 30, 2019. The Fund’s distribution levels may vary over time based on its investment activity and portfolio investment value changes.
During the current reporting period, the Fund’s distributions to shareholders were as shown in the accompanying table.
| | |
| Per Share |
| Monthly Distributions (Ex-Dividend Date) | Amounts |
April 2019 | $0.0265 |
May | 0.0265 |
June | 0.0265 |
July | 0.0265 |
August | 0.0265 |
September 2019 | 0.0265 |
| Total Distributions from Net Investment Income | $0.1590 |
| Yields | |
Market Yield* | 3.06% |
Taxable-Equivalent Yield* | 5.14% |
| |
| * Market Yield is based on the Fund’s current annualized monthly distribution 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 an income tax rate of 40.8%. When comparing the Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield would be lower. 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. |
The 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 the Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. Distributions to shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to Note 6 – Income Tax Information for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.
All monthly dividends paid by the Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of the Fund’s distributions for the reporting period are presented in this report’s Financial Highlights. For income tax purposes, distribution information for the 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.
7
Common Share Information (continued)
CHANGE IN METHOD OF PUBLISHING NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS
Beginning on or about November 1, 2019, the Nuveen Closed-End Funds will be discontinuing the practice of announcing Fund distribution amounts and timing via press release. Instead, information about the Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders will be posted and can be found on Nuveen’s enhanced closed-end fund resource page, which is at www.nuveen.com/closed-end-fund-distributions, along with other Nuveen closed-end fund product updates. Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month. To ensure that our shareholders have timely access to the latest information, a subscribe function can be activated at this link here, or at this web page (www.nuveen.com/en-us/people/about-nuveen/for-the-media).
COMMON SHARE REPURCHASES
During August 2019, the Fund’s Board of Trustees reauthorized an open-market share repurchase program, allowing the Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.
As of September 30, 2019, and since the inception of the Fund’s repurchase program, the Fund has cumulatively repurchased and retired its outstanding common shares as shown in the accompanying table.
| | |
Common shares cumulatively repurchased and retired | 0 |
Common shares authorized for repurchase | 1,245,000 |
During the current reporting period, the Fund did not repurchase any of its outstanding common shares.
OTHER SHARE INFORMATION
As of September 30, 2019, and during the current reporting period, the Fund’s common share price was trading at a premium/(discount) to its common share NAV as shown in the accompanying table.
| | | | |
Common share NAV | | $ | 10.76 | |
Common share price | | $ | 10.40 | |
Premium/(Discount) to NAV | | | (3.35 | )% |
6-month average premium/(discount) to NAV | | | (3.49 | )% |
8
Risk Considerations
Fund 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 Maturities Municipal Fund (NIM)
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 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/NIM.
Investment Policy Update
While there are no such limits imposed by applicable regulations, certain Nuveen Closed-End Funds formerly had investment policies that placed limits on the Fund’s ability to invest in illiquid securities. All exchange-listed Nuveen Closed-End Funds now have no formal limit on their ability to invest in such illiquid securities, but each Fund’s portfolio management team will monitor such investments in the regular, overall management of the Fund’s portfolio securities.
9
| | |
| NIM | Nuveen Select Maturities Municipal Fund Performance Overview and Holding Summaries as of September 30, 2019 |
| | | | | |
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, 2019
|
|
| Cumulative | Average Annual |
| 6-Month | 1-Year | 5-Year | 10-Year |
NIM at Common Share NAV | 3.41% | 7.45% | 3.48% | 3.91% |
NIM at Common Share Price | 6.02% | 12.03% | 3.08% | 3.60% |
S&P Municipal Bond Intermediate Index | 3.35% | 8.14% | 3.35% | 4.00% |
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.
Common Share Price Performance — Weekly Closing Price
10
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 | 97.4% |
Short-Term Municipal Bonds | 0.7% |
Other Assets Less Liabilities | 1.9% |
| Net Assets | 100% |
|
| Portfolio Credit Quality | |
| (% of total investments) | |
U.S. Guaranteed | 6.7% |
AAA | 2.5% |
AA | 24.3% |
A | 33.3% |
BBB | 18.3% |
BB or Lower | 8.1% |
N/R (not rated) | 6.8% |
| Total | 100% |
| | |
| Portfolio Composition | |
| (% of total investments) | |
Tax Obligation/Limited | 18.1% |
Transportation | 17.5% |
Utilities | 15.5% |
Tax Obligation/General | 13.4% |
Health Care | 12.6% |
U.S. Guaranteed | 5.9% |
Consumer Staples | 4.8% |
Other | 12.2% |
| Total | 100% |
| | |
| States and Territories | |
| (% of total investments) | |
Illinois | 14.8% |
New Jersey | 8.2% |
California | 7.9% |
Ohio | 6.4% |
Texas | 6.4% |
Pennsylvania | 5.3% |
New York | 4.7% |
Arizona | 4.1% |
Florida | 4.1% |
Wisconsin | 3.7% |
Louisiana | 3.2% |
Washington | 2.4% |
Colorado | 2.3% |
Nevada | 2.1% |
Alabama | 2.0% |
Puerto Rico | 1.6% |
Georgia | 1.4% |
Other | 19.4% |
| Total | 100% |
11
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen on August 7, 2019 for NIM; at this meeting the shareholders were asked to elect Board Members.
| | |
| NIM |
| Common |
| Shares |
| Approval of the Board Members was reached as follows: | |
William C. Hunter | |
| For | 11,264,937 |
| Withhold | 224,832 |
| Total | 11,489,769 |
Judith M. Stockdale | |
| For | 11,284,386 |
| Withhold | 205,383 |
| Total | 11,489,769 |
Carole E. Stone | |
| For | 11,286,884 |
| Withhold | 202,885 |
| Total | 11,489,769 |
Margaret L. Wolff | |
| For | 11,300,993 |
| Withhold | 188,776 |
| Total | 11,489,769 |
12
| | |
| NIM | Nuveen Select Maturities Municipal Fund Portfolio of Investments September 30, 2019 (Unaudited) |
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | LONG-TERM INVESTMENTS – 97.4% | | | |
| | MUNICIPAL BONDS – 97.4% | | | |
| | Alabama – 1.5% | | | |
| $ 210 | | Black Belt Energy Gas District, Alabama, Gas PrePay Revenue Bonds, Project 3 Series | 9/23 at 100.31 | A | $ 226,550 |
| | 2018A, 4.000%, 12/01/48 (Mandatory Put 12/01/23) | | | |
| 300 | | Black Belt Energy Gas District, Alabama, Gas Supply Revenue Bonds, Series 2016, 4.000%, | 3/21 at 100.59 | Aa2 | 311,637 |
| | 7/01/46 (Mandatory Put 6/01/21) | | | |
| 565 | | Black Belt Energy Gas District, Alabama, Gas Supply Revenue Bonds, Series 2017A, 4.000%, | 4/22 at 100.52 | Aa2 | 599,680 |
| | 8/01/47 (Mandatory Put 7/01/22) | | | |
| 115 | | Mobile Spring Hill College Educational Building Authority, Alabama, Revenue Bonds, | 4/25 at 100.00 | N/R | 121,296 |
| | Spring Hill College Project, Series 2015, 5.000%, 4/15/27 | | | |
| 465 | | Southeast Alabama Gas Supply District, Alabama, Gas Supply Revenue Bonds, Project 2, | 3/24 at 100.29 | A | 506,311 |
| | Fixed Rate Series 2018A, 4.000%, 6/01/49 (Mandatory Put 6/01/24) | | | |
| 235 | | Tuscaloosa County Industrial Development Authority, Alabama, Gulf Opportunity Zone | 5/29 at 100.00 | N/R | 262,911 |
| | Bonds, Hunt Refining Project, Refunding Series 2019A, 4.500%, 5/01/32, 144A | | | |
| 1,890 | | Total Alabama | | | 2,028,385 |
| | Alaska – 0.2% | | | |
| 150 | | Alaska Industrial Development and Export Authority, Loan Anticipation Revenue Notes, | 12/19 at 100.00 | N/R | 150,335 |
| | YKHC Project, Series 2017, 3.500%, 12/01/20 | | | |
| 155 | | Alaska State, Sport Fishing Revenue Bonds, Refunding Series 2011, 5.000%, 4/01/21 | 4/20 at 100.00 | A1 | 157,779 |
| 305 | | Total Alaska | | | 308,114 |
| | Arizona – 4.0% | | | |
| 75 | | Apache County Industrial Development Authority, Arizona, Pollution Control Revenue | 3/22 at 100.00 | A– | 79,122 |
| | Bonds, Tucson Electric Power Company, Series 20102A, 4.500%, 3/01/30 | | | |
| | Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children‘s | | | |
| | Hospital, Refunding Series 2012A: | | | |
| 275 | | 5.000%, 2/01/20 | No Opt. Call | A1 | 278,190 |
| 315 | | 5.000%, 2/01/27 | 2/22 at 100.00 | A1 | 340,518 |
| 100 | | Arizona Industrial Development Authority, Arizona, Education Revenue Bonds, Legacy | 10/19 at 101.00 | N/R | 100,407 |
| | Traditional School Southwest Las Vegas Nevada Campus, Series 2018, 5.250%, 7/01/22, 144A | | | |
| | Arizona Sports and Tourism Authority, Tax Revenue Bonds, Multipurpose Stadium Facility | | | |
| | Project, Refunding Senior Series 2012A: | | | |
| 425 | | 5.000%, 7/01/25 | 7/22 at 100.00 | A1 | 458,430 |
| 685 | | 5.000%, 7/01/26 | 7/22 at 100.00 | A1 | 736,978 |
| 685 | | 5.000%, 7/01/27 | 7/22 at 100.00 | A1 | 735,272 |
| 120 | | Arizona State, Certificates of Participation, Refunding Series 2019A, 5.000%, 10/01/27 | No Opt. Call | AA– | 151,825 |
| 600 | | Chandler Industrial Development Authority, Arizona, Industrial Development Revenue | No Opt. Call | A+ | 619,032 |
| | Bonds, Intel Corporation Project, Series 2005, 2.400%, 12/01/35 (Mandatory Put 8/14/23) | | | |
| 60 | | Chandler Industrial Development Authority, Arizona, Industrial Development Revenue | No Opt. Call | A+ | 62,210 |
| | Bonds, Intel Corporation Project, Series 2007, 2.700%, 12/01/37 (Mandatory Put 8/14/23) (AMT) | | | |
| 155 | | Chandler Industrial Development Authority, Arizona, Industrial Development Revenue | No Opt. Call | A+ | 177,942 |
| | Bonds, Intel Corporation Project, Series 2019, 5.000%, 6/01/49 (Mandatory Put 6/03/24) (AMT) | | | |
| 120 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, | 10/19 at 101.00 | N/R | 120,077 |
| | Legacy Traditional Schools East Mesa and Cadence, Nevada Campuses, Series 2017A, 4.000%, | | | |
| | 7/01/22, 144A | | | |
| 115 | | Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric | 3/23 at 100.00 | A– | 122,044 |
| | Power Company Project, Series 2013A, 4.000%, 9/01/29 | | | |
13
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Arizona (continued) | | | |
| | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy | | | |
| | Inc. Prepay Contract Obligations, Series 2007: | | | |
| $ 135 | | 5.250%, 12/01/19 | No Opt. Call | A3 | $ 135,788 |
| 245 | | 5.000%, 12/01/32 | No Opt. Call | A3 | 318,637 |
| 730 | | 5.000%, 12/01/37 | No Opt. Call | A3 | 984,770 |
| 4,840 | | Total Arizona | | | 5,421,242 |
| | Arkansas – 0.4% | | | |
| 540 | | Independence County, Arkansas, Pollution Control Revenue Bonds, Arkansas Power and Light | No Opt. Call | A | 545,411 |
| | Company Project, Series 2013, 2.375%, 1/01/21 | | | |
| | California – 7.7% | | | |
| 100 | | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, | 10/25 at 100.00 | AA | 107,055 |
| | Term Rate Series 2018A, 2.625%, 4/01/45 (Mandatory Put 4/01/26) | | | |
| 390 | | California Health Facilities Financing Authority, Revenue Bonds, El Camino Hospital, | 2/27 at 100.00 | AA | 422,452 |
| | Series 2017, 3.750%, 2/01/32 | | | |
| 275 | | California Municipal Finance Authority, Charter School Revenue Bonds, Palmdale Aerospace | 7/26 at 100.00 | BB | 310,868 |
| | Academy Project, Series 2016A, 5.000%, 7/01/31, 144A | | | |
| 1,040 | | California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien | 6/28 at 100.00 | AA | 1,097,814 |
| | Series 2018A, 3.250%, 12/31/32 – AGM Insured (AMT) | | | |
| 285 | | California Municipal Finance Authority, Solid Waste Disposal Revenue Bonds, Waste | No Opt. Call | A– | 285,752 |
| | Management Inc., Series 2004, 2.000%, 12/01/44 (Mandatory Put 12/01/20) (AMT) | | | |
| 105 | | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste | No Opt. Call | A– | 113,361 |
| | Management Inc., Refunding Series 2015B-2, 3.125%, 11/01/40 (Mandatory Put 11/03/25) (AMT) | | | |
| 290 | | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, | No Opt. Call | A– | 315,793 |
| | Waste Management Inc., Series 2015A-1, 3.375%, 7/01/25 (AMT) | | | |
| 205 | | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, | No Opt. Call | A– | 219,885 |
| | Waste Management, Inc. Project, Refunding Series 2015B-1, 3.000%, 11/01/25 (AMT) | | | |
| 525 | | California State, General Obligation Bonds, Various Purpose Series 2010, 5.500%, 3/01/40 | 3/20 at 100.00 | AA | 533,647 |
| 150 | | California Statewide Communities Development Authority, California, Revenue Bonds, Loma | 12/24 at 100.00 | BB | 172,175 |
| | Linda University Medical Center, Series 2014A, 5.250%, 12/01/29 | | | |
| | California Statewide Communities Development Authority, California, Revenue Bonds, Loma | | | |
| | Linda University Medical Center, Series 2018A: | | | |
| 710 | | 5.000%, 12/01/27, 144A | No Opt. Call | BB | 846,242 |
| 30 | | 5.000%, 12/01/33, 144A | 6/28 at 100.00 | BB | 35,310 |
| 250 | | Delano, California, Certificates of Participation, Delano Regional Medical Center, | 1/23 at 100.00 | BBB | 267,145 |
| | Series 2012, 5.000%, 1/01/24 | | | |
| 205 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement | 6/22 at 100.00 | BBB | 208,786 |
| | Asset-Backed Bonds, Series 2018A-1, 3.500%, 6/01/36 | | | |
| 100 | | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon | 9/24 at 100.00 | N/R | 112,228 |
| | Hills Improvement Area A & C, Series 2014C, 5.000%, 9/01/32 | | | |
| 245 | | Lake Elsinore Redevelopment Agency, California, Special Tax Bonds, Community Facilities | 10/19 at 100.00 | AA | 245,637 |
| | District 90-2, Series 2007A, 4.500%, 10/01/24 – AGM Insured | | | |
| 1,000 | | Mount San Antonio Community College District, Los Angeles County, California, General | 2/28 at 100.00 | Aa1 | 1,087,030 |
| | Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/28 (4) | | | |
| 2,000 | | Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, | No Opt. Call | AA | 1,782,680 |
| | 8/01/25 – AGC Insured | | | |
| 35 | | Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, | 6/23 at 100.00 | BBB | 38,877 |
| | Series 2013A, 5.750%, 6/01/44 | | | |
| 80 | | San Diego Association of Governments, California, Capital Grants Receipts Revenue Bonds, | 11/26 at 100.00 | A– | 80,818 |
| | Mid-Coast Corridor Transit Project, Green Series 2019B, 1.800%, 11/15/27 | | | |
| 2,000 | | San Diego Community College District, California, General Obligation Bonds, Refunding | No Opt. Call | AAA | 1,296,280 |
| | Series 2011, 0.000%, 8/01/37 | | | |
| 415 | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road | 1/25 at 100.00 | A– | 484,002 |
| | Revenue Bonds, Refunding Senior Lien Series 2014A, 5.000%, 1/15/29 | | | |
14
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | California (continued) | | | |
| $ 215 | | Washington Township Health Care District, California, Revenue Bonds, Refunding Series | No Opt. Call | Baa1 | $ 253,276 |
| | 2015A, 5.000%, 7/01/25 | | | |
| 10,650 | | Total California | | | 10,317,113 |
| | Colorado – 2.3% | | | |
| 750 | | Colorado Bridge Enterprise, Revenue Bonds, Central 70 Project, Senior Series 2017, | 12/27 at 100.00 | A– | 851,182 |
| | 4.000%, 6/30/30 (AMT) | | | |
| 250 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health | No Opt. Call | BBB+ | 267,098 |
| | Initiatives, Series 2008D-3, 5.000%, 10/01/38 (Mandatory Put 11/12/21) | | | |
| 150 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health | 2/21 at 100.00 | BBB+ (5) | 157,646 |
| | Initiatives, Series 2011A, 5.250%, 2/01/31 (Pre-refunded 2/01/21) | | | |
| 100 | | Denver Urban Renewal Authority, Colorado, Tax Increment Revenue Bonds, 9th and Colorado | 12/23 at 103.00 | N/R | 107,089 |
| | Urban Redevelopment Area, Series 2018A, 5.250%, 12/01/39, 144A | | | |
| | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B: | | | |
| 300 | | 0.000%, 9/01/29 – NPFG Insured | No Opt. Call | A | 239,145 |
| 250 | | 0.000%, 9/01/33 – NPFG Insured | No Opt. Call | A | 173,665 |
| 1,000 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, | 9/20 at 41.72 | A | 409,160 |
| | 3/01/36 – NPFG Insured | | | |
| 500 | | Plaza Metropolitan District 1, Lakewood, Colorado, Tax Increment Revenue Bonds, | No Opt. Call | N/R | 517,745 |
| | Refunding Series 2013, 5.000%, 12/01/20, 144A | | | |
| 215 | | Regional Transportation District, Colorado, Denver Transit Partners Eagle P3 Project | 7/20 at 100.00 | BBB+ | 221,308 |
| | Private Activity Bonds, Series 2010, 6.000%, 1/15/41 | | | |
| 100 | | Southlands Metropolitan District 1, Colorado, Limited Tax General Obligation Bonds, | No Opt. Call | Ba1 | 105,143 |
| | Series 2017A-1, 3.500%, 12/01/27 | | | |
| 3,615 | | Total Colorado | | | 3,049,181 |
| | Connecticut – 0.6% | | | |
| 150 | | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven | 1/24 at 100.00 | AA– | 151,872 |
| | Health Issue, Series 2014B, 1.800%, 7/01/49 (Mandatory Put 7/01/24) | | | |
| 325 | | Connecticut State, General Obligation Bonds, Refunding Series 2012C, 5.000%, 6/01/22 | No Opt. Call | A1 | 355,485 |
| 110 | | Connecticut State, General Obligation Bonds, Refunding Series 2016G, 5.000%, 11/01/20 | No Opt. Call | A1 | 114,255 |
| 25 | | Connecticut State, General Obligation Bonds, Refunding Series 2018C, 5.000%, 6/15/22 | No Opt. Call | A1 | 27,378 |
| 90 | | Connecticut State, General Obligation Bonds, Series 2013C, 5.000%, 7/15/22 | No Opt. Call | A1 | 98,821 |
| 20 | | Connecticut State, General Obligation Bonds, Series 2019A, 5.000%, 4/15/23 | No Opt. Call | A1 | 22,433 |
| 720 | | Total Connecticut | | | 770,244 |
| | Delaware – 0.1% | | | |
| 170 | | Delaware Health Facilities Authority, Revenue Bonds, Nanticoke Memorial Hospital, Series | 7/23 at 100.00 | BBB+ | 187,381 |
| | 2013, 5.000%, 7/01/28 | | | |
| | District of Columbia – 0.7% | | | |
| 120 | | District of Columbia Student Dormitory Revenue Bonds, Provident Group – Howard | 10/22 at 100.00 | BB+ | 125,184 |
| | Properties LLC Issue, Series 2013, 5.000%, 10/01/30 | | | |
| 700 | | District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed | No Opt. Call | A– | 801,276 |
| | Bonds, Series 2001, 6.500%, 5/15/33 | | | |
| 820 | | Total District of Columbia | | | 926,460 |
| | Florida – 4.0% | | | |
| 275 | | Cape Coral, Florida, Utility Improvement Assessment Bonds, Refunding Various Areas | No Opt. Call | AA | 297,346 |
| | Series 2017, 3.000%, 9/01/28 – AGM Insured | | | |
| | Citizens Property Insurance Corporation, Florida, Coastal Account Senior Secured Bonds, | | | |
| | Series 2015A-1: | | | |
| 555 | | 5.000%, 6/01/22 | 12/21 at 100.00 | AA | 598,440 |
| 390 | | 5.000%, 6/01/25 | 12/24 at 100.00 | AA | 460,021 |
| 455 | | Citizens Property Insurance Corporation, Florida, Personal and Commercial Lines Account | No Opt. Call | AA | 465,592 |
| | Bonds, Senior Secured Series 2012A-1, 5.000%, 6/01/20 | | | |
15
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Florida (continued) | | | |
| | Collier County Educational Facilities Authority, Florida, Revenue Bonds, Hodges | | | |
| | University, Refunding Series 2013: | | | |
| $ 70 | | 4.750%, 11/01/23 | No Opt. Call | BBB– | $ 72,748 |
| 370 | | 6.000%, 11/01/33 | 11/23 at 100.00 | BBB– | 408,406 |
| | Florida Development Finance Corporation, Florida, Surface Transportation Facility | | | |
| | Revenue Bonds, Virgin Trains USA Passenger Rail Project , Series 2019A: | | | |
| 665 | | 6.250%, 1/01/49 (AMT) (Mandatory Put 1/01/24), 144A | 1/20 at 104.00 | N/R | 620,112 |
| 665 | | 6.375%, 1/01/49 (AMT) (Mandatory Put 1/01/26), 144A | 1/25 at 105.00 | N/R | 618,450 |
| 660 | | 6.500%, 1/01/49 (AMT) (Mandatory Put 1/01/29), 144A | 1/25 at 105.00 | N/R | 613,800 |
| 135 | | Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, Series 2018-2, | 1/28 at 100.00 | Aaa | 148,442 |
| | 3.750%, 7/01/33 | | | |
| 170 | | North Sumter County Utility Dependent District, Florida, Utility Revenue Bonds, Series | No Opt. Call | AA– | 173,228 |
| | 2010, 5.000%, 10/01/20 | | | |
| 90 | | Palm Beach County Health Facilities Authority, Florida, Hospital Revenue Bonds, BRCH | 12/24 at 100.00 | N/R (5) | 105,888 |
| | Corporation Obligated Group, Refunding Series 2014, 5.000%, 12/01/31 (Pre-refunded 12/01/24) | | | |
| | Tampa, Florida, Cigarette Tax Allocation Bonds, H Lee Moffitt Cancer Center Project, | | | |
| | Refunding & Capital Improvement Series 2012A: | | | |
| 160 | | 5.000%, 9/01/22 | No Opt. Call | A+ | 176,531 |
| 350 | | 5.000%, 9/01/23 | 9/22 at 100.00 | A+ | 384,895 |
| 185 | | 5.000%, 9/01/25 | 9/22 at 100.00 | A+ | 202,779 |
| 5,195 | | Total Florida | | | 5,346,678 |
| | Georgia – 1.4% | | | |
| 110 | | Cherokee County Water and Sewerage Authority, Georgia, Revenue Bonds, Series 1995, | 8/22 at 100.00 | N/R (5) | 117,353 |
| | 5.200%, 8/01/25 – NPFG Insured (Pre-refunded 8/01/22) | | | |
| 410 | | Georgia Housing and Finance Authority, Single Family Mortgage Bonds, Series 2018B, | 12/27 at 100.00 | AAA | 452,152 |
| | 3.800%, 12/01/33 | | | |
| 265 | | Main Street Natural Gas Inc., Georgia, Gas Supply Revenue Bonds, Series 2019B, 4.000%, | 9/24 at 100.43 | Aa1 | 298,480 |
| | 8/01/49 (Mandatory Put 12/02/24) | | | |
| 900 | | Private Colleges and Universities Authority, Georgia, Revenue Bonds, Mercer University, | 10/22 at 100.00 | Baa1 | 989,289 |
| | Refunding Series 2012C, 5.250%, 10/01/23 | | | |
| 1,685 | | Total Georgia | | | 1,857,274 |
| | Guam – 0.2% | | | |
| 140 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series | 7/23 at 100.00 | A– | 153,996 |
| | 2013, 5.500%, 7/01/43 | | | |
| 150 | | Guam International Airport Authority, Revenue Bonds, Series 2013C, 6.375%, 10/01/43 (AMT) | 10/23 at 100.00 | BBB+ | 174,382 |
| 290 | | Total Guam | | | 328,378 |
| | Hawaii – 1.4% | | | |
| 200 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Hawaii Pacific | 7/23 at 100.00 | BB | 214,996 |
| | University, Series 2013A, 6.250%, 7/01/27 | | | |
| 1,000 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Hawaiian | No Opt. Call | A– | 1,046,710 |
| | Electric Company, Inc. and Subsidiary Projects, Series 2017A, 3.100%, 5/01/26 (AMT) | | | |
| 20 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Queens Health | 7/25 at 100.00 | AA– | 23,573 |
| | Systems, Series 2015A, 5.000%, 7/01/29 | | | |
| 510 | | Hawaiian Electric Company Inc. and Its Subsidiaries, Special Purpose Revenue Bonds, | No Opt. Call | A– | 534,067 |
| | Department of Budget and Finance of the State of Hawaii, Series 2015, 3.250%, 1/01/25 (AMT) | | | |
| 1,730 | | Total Hawaii | | | 1,819,346 |
| | Idaho – 0.4% | | | |
| 475 | | Nez Perce County, Idaho, Pollution Control Revenue Bonds, Potlatch Corporation Project, | No Opt. Call | BBB– | 494,622 |
| | Refunding Series 2016, 2.750%, 10/01/24 | | | |
16
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Illinois – 14.5% | | | |
| | Cary, Illinois, Special Tax Bonds, Special Service Area 1, Refunding Series 2016: | | | |
| $ 10 | | 2.150%, 3/01/23 – BAM Insured | No Opt. Call | AA | $ 10,070 |
| 10 | | 2.350%, 3/01/24 – BAM Insured | No Opt. Call | AA | 10,119 |
| 25 | | 2.700%, 3/01/26 – BAM Insured | 3/25 at 100.00 | AA | 25,540 |
| 25 | | 2.900%, 3/01/28 – BAM Insured | 3/25 at 100.00 | AA | 25,548 |
| 65 | | 3.050%, 3/01/30 – BAM Insured | 3/25 at 100.00 | AA | 67,096 |
| | Cary, Illinois, Special Tax Bonds, Special Service Area 2, Refunding Series 2016: | | | |
| 15 | | 2.150%, 3/01/23 – BAM Insured | No Opt. Call | AA | 15,106 |
| 15 | | 2.350%, 3/01/24 – BAM Insured | No Opt. Call | AA | 15,178 |
| 25 | | 2.700%, 3/01/26 – BAM Insured | 3/25 at 100.00 | AA | 25,540 |
| 35 | | 2.900%, 3/01/28 – BAM Insured | 3/25 at 100.00 | AA | 35,767 |
| 40 | | 3.050%, 3/01/30 – BAM Insured | 3/25 at 100.00 | AA | 41,208 |
| 1,215 | | Chicago Board of Education, Illinois, Dedicated Capital Improvement Tax Revenue Bonds, | 4/27 at 100.00 | A | 1,458,644 |
| | Series 2016, 6.000%, 4/01/46 | | | |
| 750 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB– | 974,205 |
| | Refunding Series 2017B, 6.750%, 12/01/30, 144A | | | |
| 290 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB | 336,464 |
| | Refunding Series 2017C, 5.000%, 12/01/30 | | | |
| 200 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | 12/27 at 100.00 | BB | 231,016 |
| | Refunding Series 2017D, 5.000%, 12/01/31 | | | |
| 255 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | No Opt. Call | BB | 265,047 |
| | Refunding Series 2018A, 4.000%, 12/01/21 | | | |
| 300 | | Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, | No Opt. Call | BB | 337,134 |
| | Refunding Series 2018C, 5.000%, 12/01/24 | | | |
| 300 | | Chicago, Illinois, General Airport Revenue Bonds, O‘Hare International Airport, Senior | 1/25 at 100.00 | A | 343,533 |
| | Lien Refunding Series 2015A, 5.000%, 1/01/33 (AMT) | | | |
| | Chicago, Illinois, General Obligation Bonds, Refunding Series 2016C: | | | |
| 200 | | 5.000%, 1/01/23 | No Opt. Call | BBB+ | 215,736 |
| 225 | | 5.000%, 1/01/24 | No Opt. Call | BBB+ | 247,874 |
| 190 | | 5.000%, 1/01/25 | No Opt. Call | BBB+ | 213,267 |
| 180 | | 5.000%, 1/01/26 | No Opt. Call | BBB+ | 205,610 |
| 325 | | Cook County, Illinois, General Obligation Bonds, Refunding Series 2012C, 5.000%, 11/15/21 | No Opt. Call | AA– | 347,909 |
| 185 | | Cook County, Illinois, General Obligation Bonds, Refunding Series 2016A, 5.000%, 11/15/20 | No Opt. Call | AA– | 192,178 |
| 590 | | Huntley, Illinois, Special Tax Bonds, Special Service Area 10, Refunding Series 2017, | 3/26 at 100.00 | AA | 618,338 |
| | 3.300%, 3/01/28 – BAM Insured | | | |
| 625 | | Illinois Finance Authority, Gas Supply Refunding Revenue Bonds, The Peoples Gas Light | No Opt. Call | Aa3 | 625,788 |
| | and Coke Company Project, Series 2010B, 1.875%, 2/01/33 (Mandatory Put 8/01/20) | | | |
| 1,850 | | Illinois Finance Authority, Revenue Bonds, Ascension Health/fka Presence Health Network, | No Opt. Call | AA+ | 2,061,751 |
| | Series 2016C, 4.000%, 2/15/24 | | | |
| 455 | | Illinois Finance Authority, Revenue Bonds, Centegra Health System, Series 2012, | 9/22 at 100.00 | AA+ | 501,897 |
| | 5.000%, 9/01/27 | | | |
| 560 | | Illinois Finance Authority, Revenue Bonds, Centegra Health System, Series 2014A, | 9/24 at 100.00 | AA+ | 613,206 |
| | 4.625%, 9/01/39 | | | |
| | Illinois State, General Obligation Bonds, February Series 2014: | | | |
| 370 | | 5.000%, 2/01/25 | 2/24 at 100.00 | BBB | 405,868 |
| 325 | | 5.000%, 2/01/26 | 2/24 at 100.00 | BBB | 356,298 |
| | Illinois State, General Obligation Bonds, Refunding Series 2012: | | | |
| 390 | | 5.000%, 8/01/20 | No Opt. Call | BBB | 399,220 |
| 335 | | 5.000%, 8/01/21 | No Opt. Call | BBB | 352,098 |
| 1,000 | | 5.000%, 8/01/22 | No Opt. Call | BBB | 1,074,400 |
| 320 | | 5.000%, 8/01/23 | No Opt. Call | BBB | 350,131 |
| 300 | | Illinois State, General Obligation Bonds, Series 2012A, 4.000%, 1/01/20 | No Opt. Call | BBB | 301,455 |
17
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
|
| | September 30, 2019 (Unaudited) |
|
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Illinois (continued) | | | |
| | Illinois State, General Obligation Bonds, Series 2013: | | | |
| $ 280 | | 5.500%, 7/01/25 | 7/23 at 100.00 | BBB | $ 308,994 |
| 240 | | 5.500%, 7/01/26 | 7/23 at 100.00 | BBB | 264,684 |
| 480 | | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Refunding Senior Lien | 1/26 at 100.00 | AA– | 566,851 |
| | Series 2016A, 5.000%, 12/01/31 | | | |
| 450 | | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Refunding Senior Lien | No Opt. Call | AA– | 540,315 |
| | Series 2018A, 5.000%, 1/01/26 | | | |
| 455 | | Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Senior Lien Series 2015B, | 1/26 at 100.00 | AA– | 530,521 |
| | 5.000%, 1/01/37 | | | |
| | North Barrington, Lake County, Illinois, Special Tax Bonds, Special Service Area 19, | | | |
| | Refunding Series 2019: | | | |
| 365 | | 4.000%, 2/01/28 – BAM Insured | No Opt. Call | AA | 418,264 |
| 200 | | 4.000%, 2/01/29 – BAM Insured | 2/28 at 100.00 | AA | 228,082 |
| 395 | | 4.000%, 2/01/30 – BAM Insured | 2/28 at 100.00 | AA | 448,345 |
| 1,025 | | Railsplitter Tobacco Settlement Authority, Illinois, Tobacco Settlement Revenue Bonds, | No Opt. Call | A | 1,086,602 |
| | Series 2010, 5.250%, 6/01/21 | | | |
| 255 | | Railsplitter Tobacco Settlement Authority, Illinois, Tobacco Settlement Revenue Bonds, | No Opt. Call | A | 300,994 |
| | Series 2017, 5.000%, 6/01/25 | | | |
| | Southwestern Illinois Development Authority, Health Facility Revenue Bonds, Memorial | | | |
| | Group, Inc., Series 2013: | | | |
| 50 | | 7.250%, 11/01/33 (Pre-refunded 11/01/23) | 11/23 at 100.00 | N/R (5) | 61,561 |
| 95 | | 7.250%, 11/01/36 (Pre-refunded 11/01/23) | 11/23 at 100.00 | N/R (5) | 116,966 |
| 200 | | 7.625%, 11/01/48 (Pre-refunded 11/01/23) | 11/23 at 100.00 | N/R (5) | 249,208 |
| | Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015: | | | |
| 245 | | 5.000%, 3/01/33 | 3/25 at 100.00 | A | 281,424 |
| 145 | | 5.000%, 3/01/34 – AGM Insured | 3/25 at 100.00 | AA | 166,444 |
| 500 | | Sterling, Whiteside County, Illinois, General Obligation Bonds, Alternate Revenue | No Opt. Call | A+ | 536,835 |
| | Source, Series 2012, 4.000%, 11/01/22 | | | |
| 17,380 | | Total Illinois | | | 19,406,329 |
| | Indiana – 1.1% | | | |
| 60 | | Indiana Finance Authority, Educational Facilities Revenue Bonds, Drexel Foundation For | 10/19 at 100.00 | B | 60,086 |
| | Educational Excellence, Inc., Series 2009A, 6.000%, 10/01/21 | | | |
| 140 | | Indianapolis, Indiana, Thermal Energy System Revenue Bonds, Refunding First Lien Series | 10/24 at 100.00 | A | 161,496 |
| | 2014A, 5.000%, 10/01/31 | | | |
| 250 | | Lake County Building Corporation, Indiana, First Mortgage Bonds, Series 2012, | No Opt. Call | N/R | 255,227 |
| | 4.750%, 2/01/21 | | | |
| 250 | | Vanderburgh County, Indiana, Redevelopment District Tax Increment Revenue bonds, | 8/24 at 100.00 | A | 288,100 |
| | Refunding Series 2014, 5.000%, 2/01/29 | | | |
| 600 | | Whiting, Indiana, Environmental Facilities Revenue Bonds, BP Products North America Inc. | No Opt. Call | A1 | 659,100 |
| | Project, Series 2015, 5.000%, 11/01/45 (Mandatory Put 11/01/22) (AMT) | | | |
| 1,300 | | Total Indiana | | | 1,424,009 |
| | Iowa – 0.9% | | | |
| 500 | | Ames, Iowa, Hospital Revenue Bonds, Mary Greeley Medical Center, Series 2011, 5.250%, | 6/20 at 100.00 | A2 (5) | 513,510 |
| | 6/15/27 (Pre-refunded 6/15/20) | | | |
| 80 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/20 at 103.00 | B+ | 81,168 |
| | Company Project, Refunding Series 2019, 3.125%, 12/01/22 | | | |
| 200 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/23 at 100.00 | B+ | 218,302 |
| | Company Project, Series 2013, 5.250%, 12/01/25 | | | |
| 185 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 10/19 at 105.00 | B+ | 194,489 |
| | Company Project, Series 2016, 5.875%, 12/01/27, 144A | | | |
| 220 | | Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer | 12/22 at 103.00 | B+ | 235,547 |
| | Company Project, Series 2018A, 5.250%, 12/01/50 (Mandatory Put 12/01/33) | | | |
| 1,185 | | Total Iowa | | | 1,243,016 |
18
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Kansas – 0.2% | | | |
| $ 100 | | Wyandotte County/Kansas City Unified Government, Kansas, Utility System Revenue Bonds, | 9/22 at 100.00 | A | $ 109,188 |
| | Improvement Series 2012B, 5.000%, 9/01/37 | | | |
| 105 | | Wyandotte County/Kansas City Unified Government, Kansas, Utility System Revenue Bonds, | No Opt. Call | A | 115,627 |
| | Refunding & Improvement Series 2014A, 5.000%, 9/01/22 | | | |
| 205 | | Total Kansas | | | 224,815 |
| | Kentucky – 1.2% | | | |
| 550 | | Kentucky Economic Development Finance Authority, Hospital Revenue Bonds, Owensboro | 6/27 at 100.00 | Baa3 | 642,989 |
| | Health, Refunding Series 2017A, 5.000%, 6/01/31 | | | |
| 340 | | Lexington-Fayette Urban County Government Public Facilities Corporation, Kentucky State | 6/21 at 100.00 | A1 | 357,843 |
| | Lease Revenue Bonds, Eastern State Hospital Project, Series 2011A, 5.250%, 6/01/29 | | | |
| 155 | | Louisville-Jefferson County Metropolitan Government, Kentucky, Environmental Facilities | No Opt. Call | A1 | 155,558 |
| | Revenue, Louisville Gas & Electric Company Project, Refunding Series 2007A, | | | |
| | 1.650%, 6/01/33 (Mandatory Put 6/01/21) | | | |
| 285 | | Public Energy Authority of Kentucky, Gas Supply Revenue Bonds, Series 2018B, 4.000%, | 10/24 at 100.24 | A1 | 315,107 |
| | 1/01/49 (Mandatory Put 1/01/25) | | | |
| 125 | | Public Energy Authority of Kentucky, Gas Supply Revenue Bonds, Series 2018C-1, 4.000%, | 3/25 at 100.19 | A | 138,325 |
| | 12/01/49 (Mandatory Put 6/01/25) | | | |
| 30 | | Warren County, Kentucky, Hospital Refunding Revenue Bonds, Bowling Green-Warren County | No Opt. Call | A+ | 32,660 |
| | Community Hospital Corporation, Series 2013, 5.000%, 4/01/23 | | | |
| 1,485 | | Total Kentucky | | | 1,642,482 |
| | Louisiana – 3.1% | | | |
| 455 | | Jefferson Parish Hospital Service District 2, Louisiana, Hospital Revenue Bonds, East | 7/21 at 100.00 | B | 466,211 |
| | Jefferson General Hospital, Refunding Series 2011, 6.375%, 7/01/41 | | | |
| 1,185 | | Louisiana Local Government Environmental Facilities and Community Development Authority, | 11/27 at 100.00 | BBB | 1,262,072 |
| | Revenue Bonds, Westlake Chemical Corporation Projects, Refunding Series 2017, | | | |
| | 3.500%, 11/01/32 | | | |
| 150 | | Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, | 5/26 at 100.00 | A3 | 178,230 |
| | Refunding Series 2016, 5.000%, 5/15/29 | | | |
| 150 | | Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, | 5/27 at 100.00 | A3 | 180,668 |
| | Refunding Series 2017, 5.000%, 5/15/30 | | | |
| | Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, | | | |
| | Series 2015: | | | |
| 525 | | 5.000%, 5/15/22 | No Opt. Call | A3 | 569,200 |
| 350 | | 5.000%, 5/15/24 | No Opt. Call | A3 | 399,773 |
| 140 | | New Orleans, Louisiana, General Obligation Bonds, Refunding Series 2015, 5.000%, 12/01/25 | No Opt. Call | AA– | 167,758 |
| 100 | | New Orleans, Louisiana, Sewerage Service Revenue Bonds, Series 2015, 5.000%, 6/01/32 | 6/25 at 100.00 | A | 116,365 |
| 590 | | Saint Charles Parish, Louisiana, Gulf Opportunity Zone Revenue Bonds, Valero Project, | No Opt. Call | BBB | 622,184 |
| | Series 2010, 4.000%, 12/01/40 (Mandatory Put 6/01/22) | | | |
| | Shreveport, Louisiana, Water and Sewer Revenue Bonds, Junior Lien Series 2019B: | | | |
| 25 | | 5.000%, 12/01/31 – AGM Insured | 12/28 at 100.00 | AA | 31,268 |
| 150 | | 4.000%, 12/01/33 – AGM Insured | 12/28 at 100.00 | AA | 172,628 |
| 3,820 | | Total Louisiana | | | 4,166,357 |
| | Maine – 0.0% | | | |
| 35 | | Portland, Maine, General Airport Revenue Bonds, Refunding Series 2013, 5.000%, 7/01/22 | No Opt. Call | BBB+ | 37,978 |
| | Maryland – 0.3% | | | |
| 335 | | Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Refunding Series 2017, | 9/27 at 100.00 | BBB– | 398,697 |
| | 5.000%, 9/01/30 | | | |
19
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Massachusetts – 0.3% | | | |
| $ 200 | | Massachusetts Development Finance Agency Revenue Bonds, Lawrence General Hospital Issue, | 7/24 at 100.00 | BB | $ 222,426 |
| | Series 2014A, 5.000%, 7/01/27 | | | |
| 100 | | Massachusetts Development Finance Agency Revenue Refunding Bonds, NewBridge on the | 10/22 at 105.00 | BB+ | 107,432 |
| | Charles, Inc. Issue, Series 2017, 4.000%, 10/01/32, 144A | | | |
| 60 | | Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Series | 7/28 at 100.00 | A | 74,263 |
| | 2018J-2, 5.000%, 7/01/33 | | | |
| 360 | | Total Massachusetts | | | 404,121 |
| | Michigan – 1.2% | | | |
| 400 | | Detroit Downtown Development Authority, Michigan, Tax Increment Refunding Bonds, | No Opt. Call | BB+ | 341,056 |
| | Development Area 1 Projects, Series 1996B, 0.000%, 7/01/23 | | | |
| 150 | | Detroit, Michigan, Senior Lien Sewerage Disposal System Revenue Bonds, Series 2001B, | No Opt. Call | A | 188,983 |
| | 5.500%, 7/01/29 – NPFG Insured | | | |
| 150 | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & | 7/25 at 100.00 | A | 174,668 |
| | Sewerage Department Sewage Disposal System Local Project, Second Lien Series 2015C, | | | |
| | 5.000%, 7/01/34 | | | |
| 50 | | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2018A, | 10/27 at 100.00 | AA | 53,833 |
| | 3.800%, 10/01/38 | | | |
| 705 | | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Wayne | 12/25 at 100.00 | A | 822,375 |
| | County Airport, Refunding Series 2015F, 5.000%, 12/01/33 (AMT) | | | |
| 1,455 | | Total Michigan | | | 1,580,915 |
| | Mississippi – 0.4% | | | |
| 130 | | Mississippi Business Finance Corporation, Pollution Control Revenue, Mississippi Power, | 3/24 at 100.00 | A– | 133,364 |
| | Series 2002, 3.200%, 9/01/28 | | | |
| 175 | | Mississippi Business Finance Corporation, Revenue Bonds, Mississippi Power Company | No Opt. Call | A– | 177,706 |
| | Project, First Series 2010, 2.750%, 12/01/40 (Mandatory Put 12/09/21) | | | |
| 265 | | Mississippi Business Finance Corporation, Revenue Bonds, System Energy Resources, Inc. | 4/21 at 100.00 | BBB+ | 265,623 |
| | Project, Refunding Series 2019, 2.500%, 4/01/22 | | | |
| 570 | | Total Mississippi | | | 576,693 |
| | Missouri – 0.2% | | | |
| 100 | | Branson Industrial Development Authority, Missouri, Tax Increment Revenue Bonds, Branson | 11/25 at 100.00 | N/R | 104,387 |
| | Shoppes Redevelopment Project, Refunding Series 2017A, 4.000%, 11/01/26 | | | |
| 100 | | Missouri Health and Educational Facilities Authority, Educational Facilities Revenue | 5/23 at 100.00 | BBB | 108,303 |
| | Bonds, Saint Louis College of Pharmacy, Series 2013, 5.250%, 5/01/33 | | | |
| 30 | | Missouri Health and Educational Facilities Authority, Educational Facilities Revenue | 11/23 at 100.00 | BBB | 31,083 |
| | Bonds, Saint Louis College of Pharmacy, Series 2015B, 4.000%, 5/01/32 | | | |
| 70 | | St Louis County, Missouri, GNMA Collateralized Mortgage Revenue Bonds, Series 1989A, | 7/20 at 100.00 | AA+ (5) | 72,493 |
| | 8.125%, 8/01/20 (Pre-refunded 7/01/20) (AMT) | | | |
| 300 | | Total Missouri | | | 316,266 |
| | Montana – 0.2% | | | |
| 260 | | Billings, Montana, Tax Increment Urban Renewal Revenue Bonds, Expanded North 27th | 1/23 at 100.00 | N/R | 274,641 |
| | Street, Series 2013A, 5.000%, 7/01/33 | | | |
| | Nebraska – 0.2% | | | |
| 100 | | Central Plains Energy Project, Nebraska, Gas Project 4 Revenue Bonds, Series 2018A, | 10/23 at 100.43 | A | 111,867 |
| | 5.000%, 3/01/50 (Mandatory Put 1/01/24) | | | |
| 100 | | Douglas County School District 10 Elkhorn, Nebraska, General Obligation Bonds, Public | 6/22 at 100.00 | AA– | 107,536 |
| | Schools Series 2012, 4.000%, 6/15/23 | | | |
| 200 | | Total Nebraska | | | 219,403 |
20
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Nevada – 2.1% | | | |
| $ 1,470 | | Clark County, Nevada, Airport Revenue Bonds, Subordinate Lien Series 2010B, | 1/20 at 100.00 | Aa3 | $ 1,485,200 |
| | 5.750%, 7/01/42 | | | |
| 200 | | Clark County, Nevada, General Obligation Bonds, Refunding Flood Control Series 2014, | 11/24 at 100.00 | AA+ | 220,740 |
| | 4.000%, 11/01/33 | | | |
| 50 | | Las Vegas, Nevada, Local Improvement Bonds, Special Improvement District 607 Providence, | No Opt. Call | N/R | 53,201 |
| | Refunding Series 2013, 5.000%, 6/01/22 | | | |
| 200 | | Washoe County, Nevada, Gas and Water Facilities Revenue Bonds, Sierra Pacific Power | No Opt. Call | A+ | 207,592 |
| | Company, Refunding Series 2016B, 3.000%, 3/01/36 (Mandatory Put 6/01/22) | | | |
| 775 | | Washoe County, Nevada, General Obligation Bonds, Reno-Sparks Convention & Visitors | 7/21 at 100.00 | AA | 824,600 |
| | Authority, Refunding Series 2011, 5.000%, 7/01/23 | | | |
| 2,695 | | Total Nevada | | | 2,791,333 |
| | New Hampshire – 0.1% | | | |
| 105 | | Business Finance Authority of the State of New Hampshire, Water Facility Revenue Bonds, | 1/26 at 100.00 | A+ | 112,874 |
| | Pennichuck Water Works, Inc. Project ,Series 2015A, 4.250%, 1/01/36 (AMT) | | | |
| | New Jersey – 8.0% | | | |
| 510 | | Camden County Improvement Authority, New Jersey, Health Care Redevelopment Revenue Bonds, | 2/24 at 100.00 | BBB+ | 574,423 |
| | Cooper Health System Obligated Group Issue, Refunding Series 2014A, 5.000%, 2/15/30 | | | |
| 300 | | Gloucester County Pollution Control Financing Authority, New Jersey, Pollution Control | No Opt. Call | BBB– | 326,994 |
| | Revenue Bonds, Logan Project, Refunding Series 2014A, 5.000%, 12/01/24 (AMT) | | | |
| | New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, | | | |
| | Series 2012: | | | |
| 280 | | 5.000%, 6/15/20 | No Opt. Call | BBB+ | 286,460 |
| 150 | | 5.000%, 6/15/21 | No Opt. Call | BBB+ | 158,156 |
| 370 | | 5.000%, 6/15/22 | No Opt. Call | BBB+ | 400,987 |
| 375 | | 5.000%, 6/15/23 | 6/22 at 100.00 | BBB+ | 405,484 |
| 210 | | 5.000%, 6/15/24 | 6/22 at 100.00 | BBB+ | 226,605 |
| 510 | | 5.000%, 6/15/25 | 6/22 at 100.00 | BBB+ | 549,188 |
| 150 | | 5.000%, 6/15/26 | 6/22 at 100.00 | BBB+ | 161,288 |
| 125 | | 4.250%, 6/15/27 | 6/22 at 100.00 | BBB+ | 131,655 |
| 300 | | 5.000%, 6/15/28 | 6/22 at 100.00 | BBB+ | 321,801 |
| 220 | | New Jersey Economic Development Authority, Private Activity Bonds, The Goethals Bridge | 1/24 at 100.00 | BBB | 248,866 |
| | Replacement Project, Series 2013, 5.000%, 1/01/28 (AMT) | | | |
| 1,000 | | New Jersey Economic Development Authority, School Facilities Construction Bonds, | 6/25 at 100.00 | A– | 1,142,990 |
| | Refunding Series 2015XX, 5.000%, 6/15/27 | | | |
| 1,095 | | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Senior | 12/26 at 100.00 | Aaa | 1,190,013 |
| | Lien Series 2017-1A, 3.750%, 12/01/31 (AMT) | | | |
| 1,280 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital | No Opt. Call | A– | 836,595 |
| | Appreciation Series 2010A, 0.000%, 12/15/33 | | | |
| 1,590 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series | No Opt. Call | A– | 1,796,048 |
| | 2010D, 5.000%, 12/15/23 | | | |
| 170 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series | 12/28 at 100.00 | A– | 180,747 |
| | 2019AA, 3.750%, 6/15/33 | | | |
| 270 | | Salem County Pollution Control Financing Authority, New Jersey, Pollution Control | No Opt. Call | BBB | 292,078 |
| | Revenue Bonds, Chambers Project, Refunding Series 2014A, 5.000%, 12/01/23 (AMT) | | | |
| 250 | | South Jersey Port Corporation, New Jersey, Marine Terminal Revenue Bonds, Refunding | No Opt. Call | Baa1 | 255,083 |
| | Series 2012Q, 3.000%, 1/01/22 | | | |
| 670 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed | 6/28 at 100.00 | A– | 825,849 |
| | Bonds, Series 2018A, 5.000%, 6/01/29 | | | |
| 465 | | Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed | No Opt. Call | BBB+ | 475,597 |
| | Bonds, Series 2018B, 3.200%, 6/01/27 | | | |
| 10,290 | | Total New Jersey | | | 10,786,907 |
21
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
|
| | September 30, 2019 (Unaudited) |
|
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | New Mexico – 0.9% | | | |
| $ 715 | | Farmington, New Mexico, Pollution Control Revenue Bonds, Southern California Edison | No Opt. Call | A– | $ 715,443 |
| | Company – Four Corners Project, Refunding Series 2005A, 1.875%, 4/01/29 (Mandatory Put 4/01/20) | | | |
| 60 | | New Mexico Mortgage Finance Authority, Single Family Mortgage Program Bonds, Class 1 | 1/29 at 100.00 | Aaa | 61,727 |
| | Series 2019D, 2.800%, 7/01/34 | | | |
| 335 | | New Mexico Municipal Energy Acquisition Authority, Gas Supply Revenue Bonds, Refunding & | 2/25 at 100.73 | Aa2 | 390,741 |
| | Acquisition Sub-Series 2019A, 5.000%, 11/01/39 (Mandatory Put 5/01/25) | | | |
| 1,110 | | Total New Mexico | | | 1,167,911 |
| | New York – 4.6% | | | |
| 220 | | Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue | 1/20 at 100.00 | AA+ (5) | 222,970 |
| | Bonds, Barclays Center Project, Series 2009, 6.000%, 7/15/30 (Pre-refunded 1/15/20) | | | |
| | Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue | | | |
| | Bonds, Catholic Health System, Inc. Project, Series 2015: | | | |
| 210 | | 5.000%, 7/01/23 | No Opt. Call | BBB+ | 236,027 |
| 195 | | 5.000%, 7/01/24 | No Opt. Call | BBB+ | 225,280 |
| 200 | | Dormitory Authority of the State of New York, Revenue Bonds, Orange Regional Medical | 6/27 at 100.00 | BBB– | 240,994 |
| | Center Obligated Group, Series 2017, 5.000%, 12/01/28, 144A | | | |
| 775 | | Dormitory Authority of the State of New York, State University Educational Facilities | 5/22 at 100.00 | AA | 850,508 |
| | Revenue Bonds, Third General Resolution, Series 2012A, 5.000%, 5/15/25 | | | |
| | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 | | | |
| | Series 2011A: | | | |
| 270 | | 5.750%, 2/15/47 (Pre-refunded 2/15/21) | 2/21 at 100.00 | Aa2 (5) | 286,556 |
| 165 | | 5.750%, 2/15/47 | 2/21 at 100.00 | Aa2 | 174,393 |
| | Long Island Power Authority, New York, Electric System General Revenue Bonds, | | | |
| | Series 2000A: | | | |
| 240 | | 0.000%, 6/01/22 – AGM Insured | No Opt. Call | AA | 230,028 |
| 170 | | 0.000%, 6/01/24 – AGM Insured | No Opt. Call | AA | 156,301 |
| 300 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Bond | No Opt. Call | N/R | 319,734 |
| | Anticipation Note Series 2018C Subseries 2018C-2, 5.000%, 9/01/21 | | | |
| 250 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Bond | No Opt. Call | N/R | 271,853 |
| | Anticipation Note Series 2019B-1, 5.000%, 5/15/22 | | | |
| 835 | | New York State Energy Research and Development Authority, Pollution Control Revenue | No Opt. Call | A– | 838,232 |
| | Bonds, New York State Electric and Gas Corporation, Series 2005A, 2.375%, 7/01/26 (Mandatory | | | |
| | Put 5/01/20) (AMT) | | | |
| 100 | | New York State Housing Finance Agency, Affordable Housing Revenue Bonds, Climate Bond | 11/27 at 100.00 | Aa2 | 107,867 |
| | Certified/Green Bond Series 2018I, 3.625%, 11/01/33 | | | |
| 230 | | New York State Housing Finance Agency, Affordable Housing Revenue Bonds, Refunding | 5/28 at 100.00 | Aa2 | 246,123 |
| | Series 2019C, 3.500%, 11/01/34 | | | |
| | New York Transportation Development Corporation, New York, Special Facility Revenue | | | |
| | Refunding Bonds, Terminal One Group Association, LP Project, Series 2015: | | | |
| 60 | | 5.000%, 1/01/22 (AMT) | No Opt. Call | A– | 64,197 |
| 60 | | 5.000%, 1/01/23 (AMT) | No Opt. Call | A– | 65,921 |
| | New York Transportation Development Corporation, Special Facilities Bonds, LaGuardia | | | |
| | Airport Terminal B Redevelopment Project, Series 2016A: | | | |
| 135 | | 4.000%, 7/01/32 (AMT) | 7/24 at 100.00 | BBB | 143,953 |
| 230 | | 4.000%, 7/01/33 (AMT) | 7/24 at 100.00 | BBB | 244,911 |
| 185 | | 5.000%, 7/01/34 (AMT) | 7/24 at 100.00 | BBB | 207,957 |
| 100 | | 5.000%, 7/01/41 (AMT) | 7/24 at 100.00 | BBB | 111,212 |
| 500 | | 5.000%, 7/01/46 (AMT) | 7/24 at 100.00 | BBB | 553,810 |
| 400 | | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, | No Opt. Call | AA– | 432,080 |
| | Refunding Series 2013B, 5.000%, 11/15/21 | | | |
| 5,830 | | Total New York | | | 6,230,907 |
22
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | North Carolina – 1.3% | | | |
| $ 1,325 | | North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2015C, | 1/26 at 100.00 | A | $ 1,596,545 |
| | 5.000%, 1/01/29 | | | |
| 250 | | North Carolina Turnpike Authority, Monroe Expressway Toll Revenue Bonds, Capital | 7/26 at 96.08 | BBB | 205,980 |
| | Appreciation Series 2017C, 0.000%, 7/01/27 | | | |
| 1,575 | | Total North Carolina | | | 1,802,525 |
| | North Dakota – 0.9% | | | |
| | Burleigh County, North Dakota, Health Care Revenue Bonds, Saint Alexius Medical Center | | | |
| | Project, Series 2014A: | | | |
| 200 | | 5.000%, 7/01/29 (Pre-refunded 7/01/21) | 7/21 at 100.00 | N/R (5) | 212,488 |
| 650 | | 5.000%, 7/01/31 (Pre-refunded 7/01/21) | 7/21 at 100.00 | N/R (5) | 690,586 |
| 100 | | North Dakota Housing Finance Agency, Home Mortgage Finance Program Bonds, Series 2019C, | 7/28 at 100.00 | Aa1 | 103,084 |
| | 3.200%, 7/01/39 | | | |
| 170 | | Ward County Health Care, North Dakota, Revenue Bonds, Trinity Obligated Group, Series | No Opt. Call | BBB– | 203,906 |
| | 2017C, 5.000%, 6/01/28 | | | |
| 1,120 | | Total North Dakota | | | 1,210,064 |
| | Ohio – 6.3% | | | |
| 120 | | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Health Partners, | 5/22 at 100.00 | AA– | 129,515 |
| | Refunding and Improvement Series 2012A, 5.000%, 5/01/33 | | | |
| | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed | | | |
| | Revenue Bonds, Senior Lien, Series 2007A-2: | | | |
| 1,685 | | 5.125%, 6/01/24 | 10/19 at 100.00 | B– | 1,685,017 |
| 95 | | 5.375%, 6/01/24 | 10/19 at 100.00 | B– | 95,008 |
| 730 | | 5.875%, 6/01/30 | 10/19 at 100.00 | B– | 731,745 |
| 150 | | 5.750%, 6/01/34 | 10/19 at 100.00 | B– | 150,222 |
| 480 | | Fairfield County, Ohio, Hospital Facilities Revenue Bonds, Fairfield Medical Center | 6/23 at 100.00 | Ba2 | 499,421 |
| | Project, Series 2013, 5.000%, 6/15/43 | | | |
| 50 | | Lake County, Ohio, Hospital Facilities Revenue Bonds, Lake Hospital System, Inc., | 10/19 at 100.00 | A– | 50,168 |
| | Refunding Series 2008C, 5.500%, 8/15/24 | | | |
| | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, | | | |
| | Series 2012C: | | | |
| 30 | | 4.000%, 10/01/19 | No Opt. Call | Aa3 | 30,000 |
| 40 | | 4.000%, 10/01/20 | No Opt. Call | Aa3 | 41,079 |
| 45 | | 5.000%, 10/01/21 | No Opt. Call | Aa3 | 48,318 |
| 35 | | 5.000%, 10/01/22 | No Opt. Call | Aa3 | 38,685 |
| 45 | | Ohio Air Quality Development Authority, Ohio, Air Quality Development Revenue Bonds, | No Opt. Call | N/R | 37,238 |
| | FirstEnergy Generation Corporation Project, Series 2009A, 5.700%, 8/01/20 (6) | | | |
| 100 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, | No Opt. Call | N/R | 82,750 |
| | FirstEnergy Generation Corporation Project, Refunding Series 2009B, 3.100%, 3/01/23, (6) | | | |
| 260 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, | No Opt. Call | N/R | 278,200 |
| | FirstEnergy Generation Corporation Project, Refunding Series 2009C, 5.625%, 6/01/18 (6) | | | |
| 425 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, | No Opt. Call | N/R | 351,687 |
| | FirstEnergy Generation Project, Refunding Series 2006A, 3.750%, 12/01/23 (6) | | | |
| 90 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, | No Opt. Call | N/R | 74,475 |
| | FirstEnergy Nuclear Generation Corporation Project, Refunding Series 2010A, 3.125%, 7/01/33 (6) | | | |
| 130 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, | No Opt. Call | N/R | 107,575 |
| | FirstEnergy Nuclear Generation Project, Refunding Series 2006B, 3.625%, 12/01/33 (Mandatory | | | |
| | Put 6/01/20), (6) | | | |
| 300 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, American Electric Company | No Opt. Call | BBB+ | 302,334 |
| | Project, Refunding Series 2007B, 2.500%, 11/01/42 (Mandatory Put 10/01/29) (AMT) | | | |
| 45 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Pratt Paper Ohio, LLC | No Opt. Call | N/R | 48,834 |
| | Project, Series 2017, 3.750%, 1/15/28, 144A (AMT) | | | |
| 100 | | Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, Mortgage-Backed | 9/28 at 100.00 | Aaa | 102,483 |
| | Securities Program, Series 2019B, 3.000%, 9/01/39 | | | |
23
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Ohio (continued) | | | |
| $ 2,265 | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Projects, Junior Lien | 2/31 at 100.00 | Aa3 | $ 2,572,904 |
| | Convertible Series 2013A-3, 0.000%, 2/15/34 (4) | | | |
| 230 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 190,325 |
| | Nuclear Generating Corporation Project, Series 2005B, 4.000%, 1/01/34 (Mandatory | | | |
| | Put 7/01/21) (6) | | | |
| 120 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 99,300 |
| | Nuclear Generating Corporation Project, Series 2006A, 3.000%, 5/15/19, (6) | | | |
| 110 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 91,025 |
| | Nuclear Generating Corporation Project, Series 2006B, 4.000%, 12/01/33, (6) | | | |
| 110 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 91,025 |
| | Nuclear Generating Corporation Project, Series 2008B, 4.000%, 10/01/33, (6) | | | |
| 220 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 182,050 |
| | Nuclear Generating Corporation Project, Series 2010A, 3.750%, 7/01/33 (Mandatory Put 7/01/20) (6) | | | |
| 235 | | Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy | No Opt. Call | N/R | 194,462 |
| | Nuclear Generating Corporation Project, Series 2010C, 4.000%, 6/01/33, (6) | | | |
| 100 | | Tuscarawas County Economic Development and Finance Alliance, Ohio, Higher Education | 3/25 at 100.00 | N/R | 106,599 |
| | Facilities Revenue Bonds, Ashland University, Refunding & Improvement Series 2015, | | | |
| | 5.375%, 3/01/27 | | | |
| 8,345 | | Total Ohio | | | 8,412,444 |
| | Oklahoma – 1.2% | | | |
| 800 | | Caddo County Governmental Building Authority, Oklahoma, Sales Tax Revenue Bonds, | 9/28 at 100.00 | BBB+ | 860,520 |
| | Refunding Series 2018, 3.625%, 9/01/33 | | | |
| 250 | | Comanche County Educational Facilities Authority, Oklahoma, Educational Facilities Lease | 12/27 at 100.00 | A | 304,275 |
| | Revenue Bonds, Elgin Public Schools Project, Series 2017A, 5.000%, 12/01/31 | | | |
| 200 | | Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine | No Opt. Call | Baa3 | 247,644 |
| | Project, Series 2018B, 5.000%, 8/15/28 | | | |
| 125 | | Weatherford Industrial Trust Educational, Oklahoma, Facilities Lease Revenue Bonds, | 3/29 at 100.00 | A– | 155,431 |
| | Weatherford Public Schools Project, Series 2019, 5.000%, 3/01/31 | | | |
| 1,375 | | Total Oklahoma | | | 1,567,870 |
| | Oregon – 0.9% | | | |
| 1,250 | | Beaverton School District 48J, Washington and Multnomah Counties, Oregon, General | 6/27 at 85.82 | AA+ | 891,375 |
| | Obligation Bonds, Deferred Interest Series 2017B, 0.000%, 6/15/31 | | | |
| 360 | | Oregon State Business Development Commission, Recovery Zone Facility Revenue Bonds, | No Opt. Call | A+ | 371,419 |
| | Intel Corporation Project, 232 Series 2010, 2.400%, 12/01/40 (Mandatory Put 8/14/23) | | | |
| 1,610 | | Total Oregon | | | 1,262,794 |
| | Pennsylvania – 5.2% | | | |
| 100 | | Allentown Neighborhood Improvement Zone Development Authority, Pennsylvania, Tax Revenue | No Opt. Call | Ba3 | 118,199 |
| | Bonds, City Center Project, Series 2018, 5.000%, 5/01/28, 144A | | | |
| 220 | | Beaver County Industrial Development Authority, Pennsylvania, Pollution Control Revenue | No Opt. Call | N/R | 182,050 |
| | Refunding Bonds, FirstEnergy Nuclear Generation Project, Series 2008A, 2.700%, 4/01/35 (6) | | | |
| 200 | | Lehigh County Industrial Development Authority, Pennsylvania, Pollution Control Revenue | No Opt. Call | A1 | 200,564 |
| | Bonds, Pennsylvania Power and Light Company, Series 2016A, 1.800%, 9/01/29 (Mandatory | | | |
| | Put 9/01/22) | | | |
| 455 | | Lehigh County Industrial Development Authority, Pennsylvania, Pollution Control Revenue | No Opt. Call | A1 | 458,431 |
| | Bonds, Pennsylvania Power and Light Company, Series 2016B, 1.800%, 2/15/27 | | | |
| 200 | | Luzerne County Industrial Development Authority, Pennsylvania, Guaranteed Lease Revenue | 12/19 at 100.00 | N/R (5) | 202,542 |
| | Bonds, Series 2009, 7.750%, 12/15/27 (Pre-refunded 12/15/19) | | | |
| 500 | | Montgomery County Industrial Development Authority, Pennsylvania, Pollution Control | No Opt. Call | BBB+ | 505,335 |
| | Revenue Bonds, PECO Energy Company Project, Refunding Series 1996A, 2.600%, 3/01/34, | | | |
| | (Mandatory Put 9/01/20) | | | |
| 500 | | Montgomery County Industrial Development Authority, Pennsylvania, Pollution Control | No Opt. Call | BBB+ | 502,740 |
| | Revenue Bonds, PECO Energy Company Project, Refunding Series 1999A, 2.500%, 10/01/30 | | | |
| | (Mandatory Put 4/01/20) | | | |
24
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Pennsylvania (continued) | | | |
| $ 5 | | Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds, | No Opt. Call | N/R | $ 4,138 |
| | Shippingport Project, First Energy Guarantor, Series 2006A, 2.550%, 11/01/41 (6) | | | |
| 500 | | Pennsylvania Economic Development Financing Authority, Parking System Revenue Bonds, | 1/24 at 100.00 | AA | 577,805 |
| | Capitol Region Parking System, Junior Guaranteed Series 2013B, 5.500%, 1/01/27 | | | |
| 250 | | Pennsylvania Economic Development Financing Authority, Parking System Revenue Bonds, | 1/24 at 100.00 | AA | 289,207 |
| | Capitol Region Parking System, Junior Insured Series 2013C, 5.500%, 1/01/26 – AGM Insured | | | |
| 230 | | Pennsylvania Economic Development Financing Authority, Private Activity Revenue Bonds, | No Opt. Call | BBB | 268,270 |
| | Pennsylvania Rapid Bridge Replacement Project, Series 2015, 5.000%, 12/31/25 (AMT) | | | |
| 50 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, University of the | 12/19 at 100.00 | N/R (5) | 50,873 |
| | Arts, Series 1999, 5.150%, 3/15/20 – RAAI Insured (ETM) | | | |
| 250 | | Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series | 4/27 at 100.00 | AA+ | 261,290 |
| | 2017-125A, 3.400%, 10/01/32 (AMT) | | | |
| 25 | | Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series | 10/27 at 100.00 | AA+ | 26,624 |
| | 2019-128A, 3.650%, 10/01/32 (AMT) | | | |
| 100 | | Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series | 10/28 at 100.00 | AA+ | 103,601 |
| | 2019-129, 2.950%, 10/01/34 | | | |
| | Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Turnpike Special Revenue | | | |
| | Bonds, Subordinate Series 2010A1&2: | | | |
| 115 | | 5.500%, 12/01/34 (Pre-refunded 12/01/20) | 12/20 at 100.00 | N/R (5) | 120,600 |
| 475 | | 5.500%, 12/01/34 (Pre-refunded 12/01/20) | 12/20 at 100.00 | AA– (5) | 498,132 |
| | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Refunding Subordinate Second | | | |
| | Series 2016B-2: | | | |
| 400 | | 5.000%, 6/01/29 | 6/26 at 100.00 | A3 | 476,516 |
| 855 | | 5.000%, 6/01/35 | 6/26 at 100.00 | A3 | 1,002,274 |
| 250 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Refunding Subordinate Third | 12/27 at 100.00 | A3 | 303,822 |
| | Series 2017, 5.000%, 12/01/32 | | | |
| 190 | | Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth Series 1990B, 7.000%, | No Opt. Call | N/R (5) | 196,559 |
| | 5/15/20 – NPFG Insured (ETM) | | | |
| 65 | | Quakertown General Authority Health Facilities Revenue USDA Loan Anticipation Notes and | 10/19 at 100.00 | N/R | 64,993 |
| | Revenue Bonds for LifeQuest Obligated Group, Pennsylvania, Series 2017A, 3.125%, 7/01/21 | | | |
| 100 | | Scranton, Lackawanna County, Pennsylvania, General Obligation Notes, Series 2016, | 5/24 at 100.00 | BB+ | 110,695 |
| | 5.000%, 11/15/26 | | | |
| 60 | | Scranton-Lackawanna Health and Welfare Authority, Pennsylvania, University Revenue | No Opt. Call | BB+ | 60,437 |
| | Bonds, Marywood University, Series 2016, 3.375%, 6/01/26 | | | |
| 330 | | Union County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Evangelical | No Opt. Call | A– (5) | 356,661 |
| | Community Hospital Project, Refunding & Improvement Series 2011, 5.750%, 8/01/21 (ETM) | | | |
| 6,425 | | Total Pennsylvania | | | 6,942,358 |
| | Puerto Rico – 1.6% | | | |
| 210 | | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, | No Opt. Call | Ca | 226,800 |
| | 6.125%, 7/01/24 | | | |
| | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2012A: | | | |
| 215 | | 5.250%, 7/01/24 | 7/22 at 100.00 | Ca | 226,825 |
| 105 | | 4.250%, 7/01/25 | 7/22 at 100.00 | Ca | 107,625 |
| 215 | | 5.000%, 7/01/33 | 7/22 at 100.00 | Ca | 224,406 |
| 130 | | 5.125%, 7/01/37 | 7/22 at 100.00 | Ca | 136,013 |
| | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured 2018A-1: | | | |
| 196 | | 0.000%, 7/01/27 | No Opt. Call | N/R | 156,222 |
| 352 | | 0.000%, 7/01/29 | 7/28 at 98.64 | N/R | 261,684 |
| 581 | | 0.000%, 7/01/31 | 7/28 at 91.88 | N/R | 400,466 |
| 311 | | 0.000%, 7/01/33 | 7/28 at 86.06 | N/R | 196,169 |
| 192 | | 4.500%, 7/01/34 | 7/25 at 100.00 | N/R | 205,582 |
| 2,507 | | Total Puerto Rico | | | 2,141,792 |
25
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Rhode Island – 0.2% | | | |
| $ 200 | | Rhode Island Health and Educational Building Corporation, Revenue Bonds, Care New | 9/23 at 100.00 | N/R (5) | $ 231,702 |
| | England Health System, Series 2013A, 5.500%, 9/01/28 (Pre-refunded 9/01/23) | | | |
| | South Carolina – 0.1% | | | |
| 15 | | Lexington County Health Services District, Inc., South Carolina, Hospital Revenue Bonds, | No Opt. Call | A1 | 15,042 |
| | Refunding Series 2011, 5.000%, 11/01/19 | | | |
| 130 | | Patriots Energy Group Financing Agency, South Carolina, Gas Supply Revenue Bonds, Series | 11/23 at 100.30 | Aa2 | 141,609 |
| | 2018A, 4.000%, 10/01/48 (Mandatory Put 2/01/24) | | | |
| 145 | | Total South Carolina | | | 156,651 |
| | Tennessee – 1.1% | | | |
| | Knox County Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue | | | |
| | Bonds, Covenant Health, Refunding Series 2012A: | | | |
| 105 | | 4.000%, 1/01/22 | No Opt. Call | A+ | 110,614 |
| 180 | | 5.000%, 1/01/23 | No Opt. Call | A+ | 199,384 |
| 100 | | Metropolitan Government of Nashville-Davidson County Health and Educational Facilities | No Opt. Call | N/R | 55,000 |
| | Board, Tennessee, Revenue Bonds, Knowledge Academy Charter School, Series 2017A, 4.625%, | | | |
| | 6/15/27, 144A (6) | | | |
| 100 | | The Tennessee Energy Acquisition Corporation, Gas Project Revenue Bonds, Series 2018, | 8/25 at 100.22 | A | 110,703 |
| | 4.000%, 11/01/49 (Mandatory Put 11/01/25) | | | |
| 920 | | The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2017A, 4.000%, | 2/23 at 100.43 | A | 984,097 |
| | 5/01/48 (Mandatory Put 5/01/23) | | | |
| 1,405 | | Total Tennessee | | | 1,459,798 |
| | Texas – 6.3% | | | |
| 10 | | Bexar Metropolitan Water District, Texas, Waterworks System Revenue Bonds, Refunding | 5/20 at 100.00 | AA (5) | 10,265 |
| | Series 2010, 5.875%, 5/01/40 (Pre-refunded 5/01/20) | | | |
| 540 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, | 1/21 at 100.00 | A– (5) | 572,395 |
| | 6.250%, 1/01/46 (Pre-refunded 1/01/21) | | | |
| 1,000 | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, | 7/25 at 100.00 | A– | 1,164,320 |
| | 5.000%, 1/01/31 | | | |
| 100 | | Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Refunding & | No Opt. Call | A+ | 99,882 |
| | Improvement Series 2016, 1.600%, 11/01/21, 144A (AMT) | | | |
| 205 | | Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Refunding Series | 11/20 at 100.00 | A+ | 212,753 |
| | 2012B, 5.000%, 11/01/35 | | | |
| 250 | | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, Bond | No Opt. Call | A+ | 278,017 |
| | Anticipation Note Series 2014A, 5.000%, 2/01/23 | | | |
| 155 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Second Lien | No Opt. Call | A3 | 179,033 |
| | Series 2014C, 5.000%, 11/15/24 | | | |
| 395 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Senior Lien | 11/24 at 100.00 | AA | 460,724 |
| | Series 2014A, 5.000%, 11/15/26 – AGM Insured | | | |
| 50 | | Houston, Texas, Airport System Special Facilities Revenue Bonds, United Airlines, Inc. | 7/24 at 100.00 | BB | 56,058 |
| | Terminal E Project, Refunding Series 2014, 5.000%, 7/01/29 (AMT) | | | |
| 500 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and | No Opt. Call | A | 466,825 |
| | Entertainment Project, Series 2001B, 0.000%, 9/01/23 – AMBAC Insured | | | |
| 430 | | Love Field Airport Modernization Corporation, Texas, General Airport Revenue Bonds | 11/25 at 100.00 | A1 | 509,541 |
| | Series 2015, 5.000%, 11/01/28 (AMT) | | | |
| 200 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, | 11/20 at 100.00 | A3 | 207,128 |
| | Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 | | | |
| | McCamey County Hospital District, Texas, General Obligation Bonds, Series 2013: | | | |
| 100 | | 5.000%, 12/01/25 | No Opt. Call | B1 | 109,127 |
| 100 | | 5.250%, 12/01/28 | 12/25 at 100.00 | B1 | 109,906 |
| 100 | | Mission Economic Development Corporation, Texas, Revenue Bonds, Natgasoline Project, | 10/21 at 105.00 | BB– | 108,644 |
| | Senior Lien Series 2018, 4.625%, 10/01/31, 144A (AMT) | | | |
26
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | Texas (continued) | | | |
| | North Central Texas Health Facilities Development Corporation, Texas, Revenue Bonds, | | | |
| | Children‘s Medical Center Dallas Project, Series 2012: | | | |
| $ 450 | | 5.000%, 8/15/24, (Pre-refunded 8/15/22) | 8/22 at 100.00 | Aa2 (5) | $ 497,142 |
| 380 | | 5.000%, 8/15/25 (Pre-refunded 8/15/22) | 8/22 at 100.00 | Aa2 (5) | 419,809 |
| | North Texas Tollway Authority, Special Projects System Revenue Bonds, Convertible | | | |
| | Capital Appreciation Series 2011C: | | | |
| 225 | | 0.000%, 9/01/43 (Pre-refunded 9/01/31) (4) | 9/31 at 100.00 | N/R (5) | 282,375 |
| 490 | | 0.000%, 9/01/45 (Pre-refunded 9/01/31) (4) | 9/31 at 100.00 | N/R (5) | 668,629 |
| 760 | | North Texas Tollway Authority, Special Projects System Revenue Bonds, Current Interest | 9/21 at 100.00 | N/R (5) | 812,676 |
| | Series 2011D, 5.000%, 9/01/24 (Pre-refunded 9/01/21) | | | |
| 465 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2014A, | No Opt. Call | A+ | 519,149 |
| | 5.000%, 1/01/23 | | | |
| 110 | | Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, | 12/22 at 100.00 | A3 | 119,736 |
| | Series 2012, 5.000%, 12/15/32 | | | |
| 475 | | Texas Transportation Commission, Central Texas Turnpike System Revenue Bonds, Second | 8/24 at 100.00 | BBB+ | 541,785 |
| | Tier Refunding Series 2015C, 5.000%, 8/15/31 | | | |
| 7,490 | | Total Texas | | | 8,405,919 |
| | Virginia – 1.0% | | | |
| 200 | | Chesapeake Industrial Development Authority, Virginia, Pollution Control Revenue Bonds, | No Opt. Call | A2 | 203,124 |
| | Virginia Electric and Power Company Project, Refunding Series 2008A, 1.900%, 2/01/32 | | | |
| | (Mandatory Put 6/01/23) | | | |
| 130 | | Louisa Industrial Development Authority, Virginia, Pollution Control Revenue Bonds, | No Opt. Call | A2 | 131,701 |
| | Virginia Electric and Power Company, Refunding Series 2008A, 1.900%, 11/01/35 (Mandatory | | | |
| | Put 6/01/23) | | | |
| 120 | | Louisa Industrial Development Authority, Virginia, Pollution Control Revenue Bonds, Virginia | No Opt. Call | A2 | 120,787 |
| | Electric and Power Company, Series 2008C, 1.800%, 11/01/35 (Mandatory Put 4/01/22) | | | |
| 575 | | Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River | 7/22 at 100.00 | BBB | 626,100 |
| | Crossing, Opco LLC Project, Series 2012, 5.500%, 1/01/42 (AMT) | | | |
| 200 | | Wise County Industrial Development Authority, Virginia, Solid Waste and Sewage Disposal | No Opt. Call | A2 | 201,120 |
| | Revenue Bonds, Virginia Electric and Power Company, Series 2009A, 2.150%, 10/01/40 | | | |
| | (Mandatory Put 9/01/20) | | | |
| 1,225 | | Total Virginia | | | 1,282,832 |
| | Washington – 2.4% | | | |
| 1,000 | | Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2015C, 5.000%, | No Opt. Call | AA– | 1,119,660 |
| | 4/01/23 (AMT) | | | |
| 105 | | Washington Health Care Facilities Authority, Revenue Bonds, CommonSpirit Health, Series | 2/25 at 100.00 | BBB+ | 122,096 |
| | 2019B-2, 5.000%, 8/01/49 (Mandatory Put 8/01/25) | | | |
| 175 | | Washington Health Care Facilities Authority, Revenue Bonds, CommonSpirit Health, Series | 2/26 at 100.00 | BBB+ | 207,652 |
| | 2019B-3, 5.000%, 8/01/49 (Mandatory Put 8/01/26) | | | |
| 1,050 | | Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer | 1/21 at 100.00 | A+ | 1,091,622 |
| | Research Center, Series 2011A, 5.375%, 1/01/31 | | | |
| 585 | | Whidbey Island Public Hospital District, Island County, Washington, General Obligation | 12/22 at 100.00 | Baa2 | 633,309 |
| | Bonds, Whidbey General Hospital, Series 2013, 5.500%, 12/01/33 | | | |
| 2,915 | | Total Washington | | | 3,174,339 |
| | West Virginia – 0.7% | | | |
| 100 | | Monongalia County Commission, West Virginia, Special District Excise Tax Revenue, | No Opt. Call | N/R | 106,222 |
| | University Town Centre Economic Opportunity Development District, Refunding & Improvement | | | |
| | Series 2017A, 4.500%, 6/01/27, 144A | | | |
| 105 | | West Virginia Economic Development Authority, Energy Revenue Bonds, Morgantown Energy | No Opt. Call | Baa3 | 106,157 |
| | Associates Project, Refunding Series 2016, 2.875%, 12/15/26 (AMT) | | | |
27
| | | |
| NIM | | Nuveen Select Maturities Municipal Fund |
| | Portfolio of Investments (continued) |
| | September 30, 2019 (Unaudited) |
|
|
|
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | West Virginia (continued) | | | |
| $ 250 | | West Virginia Economic Development Authority, Solid Waste Disposal Facilities Revenue | No Opt. Call | A– | $ 249,908 |
| | Bonds, Appalachian Power Company – Amos Project, Series 2011A, 1.700%, 1/01/41 (Mandatory | | | |
| | Put 9/01/20) (AMT) | | | |
| 115 | | West Virginia Economic Development Authority, Solid Waste Disposal Facilities Revenue | No Opt. Call | A– | 118,557 |
| | Bonds, Wheeling Power Company – Mitchell Project, Series 2013A, 3.000%, 6/01/37 (Mandatory | | | |
| | Put 4/01/22) (AMT) | | | |
| 70 | | West Virginia Hospital Finance Authority, Hospital Revenue Bonds, Charleston Area | 9/24 at 100.00 | Baa1 | 80,262 |
| | Medical Center, Series 2014A, 5.000%, 9/01/25 | | | |
| 240 | | West Virginia Hospital Finance Authority, Revenue Bonds, West Virginia University Health | 6/27 at 100.00 | A | 261,427 |
| | System Obligated Group, Improvement Series 2017A, 3.375%, 6/01/29 | | | |
| 880 | | Total West Virginia | | | 922,533 |
| | Wisconsin – 3.6% | | | |
| 600 | | Public Finance Authority of Wisconsin, Limited Obligation PILOT Revenue Bonds, American | 12/27 at 100.00 | N/R | 720,216 |
| | Dream @ Meadowlands Project, Series 2017, 6.500%, 12/01/37, 144A | | | |
| 155 | | Public Finance Authority of Wisconsin, Revenue Bonds, Denver international Airport Great | 9/27 at 100.00 | BBB | 159,772 |
| | Hall Project, Series 2017, 5.000%, 9/30/49 (AMT) | | | |
| 350 | | Public Finance Authority of Wisconsin, Solid Waste Disposal Revenue Bonds, Waste | 5/26 at 100.00 | A– | 366,961 |
| | Management Inc., Refunding Series 2016A-2, 2.875%, 5/01/27 (AMT) | | | |
| | University of Wisconsin Hospitals and Clinics Authority, Revenue Bonds, Refunding Series 2013A: | | | |
| 755 | | 4.000%, 4/01/20 | No Opt. Call | AA– | 764,958 |
| 45 | | 5.000%, 4/01/22 | No Opt. Call | AA– | 48,986 |
| 325 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Health | No Opt. Call | Aa3 (5) | 334,318 |
| | Care, Inc., Series 2010B, 5.000%, 7/15/20 (ETM) | | | |
| 675 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Health | 7/21 at 100.00 | Aa3 (5) | 719,314 |
| | Care, Inc., Series 2012A, 5.000%, 7/15/25 (Pre-refunded 7/15/21) | | | |
| 1,500 | | Wisconsin Health and Educational Facilities Authority, Wisconsin, Revenue Bonds, | 12/24 at 100.00 | AA– | 1,754,790 |
| | ThedaCare Inc., Series 2015, 5.000%, 12/15/26 | | | |
| 4,405 | | Total Wisconsin | | | 4,869,315 |
| | Wyoming – 0.1% | | | |
| 85 | | Campbell County, Wyoming Solid Waste Facilities Revenue Bonds, Basin Electric Power | 5/29 at 100.00 | A | 91,092 |
| | Cooperative, Dry Fork Station Facilities, Series 2019A, 3.625%, 7/15/39 | | | |
| $ 123,552 | | Total Long-Term Investments (cost $120,866,493) | | | 130,339,511 |
28
| | | | | | |
| Principal | | | Optional Call | | |
| Amount (000) | | Description (1) | Provisions (2) | Ratings (3) | Value |
| | SHORT-TERM INVESTMENTS – 0.7% | | | |
| | MUNICIPAL BONDS – 0.7% | | | |
| | National – 0.2% | | | |
| $ 340 | | BB&T Municipal Trust Pool Tax Exempt Lease Certificates Class C Series 2018, Variable Rate | No Opt. Call | A+ | $ 340,000 |
| | Demand Obligations, 2.380%, 11/30/21, (SIFMA reference rate + 0.80% spread), 144A, (7), (8) | | | |
| | Alabama – 0.5% | | | |
| 625 | | Mobile Industrial Development Board, Alabama, Pollution Control Revenue Refunding Bonds, | No Opt. Call | F1 | 652,262 |
| | Alabama Power Company Barry Plan, Variable Rate Demand Obligations, Series 2008, 2.900%, | | | |
| | 7/15/34 (Mandatory Put 12/12/23) (7) | | | |
| $ 965 | | Total Short-Term Investments (cost $965,000) | | | 992,263 |
| | Total Investments (cost $121,831,493) – 98.1% | | | 131,331,774 |
| | Other Assets Less Liabilities – 1.9% | | | 2,544,958 |
| | Net Assets Applicable to Common Shares – 100% | | | $ 133,876,732 |
| | |
(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) | 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. |
(5) | 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. |
(6) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
(7) | 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. |
(8) | Variable rate security. 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 |
ETM | Escrowed to maturity |
SIFMA | Securities Industry and Financial Market Association |
See accompanying notes to financial statements.
29
Statement of Assets and Liabilities
September 30, 2019 (Unaudited)
| | | | |
| Assets | | | |
Long-term investments, at value (cost $120,866,493) | | $ | 130,339,511 | |
Short-term investments, at value (cost $965,000) | | | 992,263 | |
Receivable for: | | | | |
| Interest | | | 1,474,497 | |
| Investments sold | | | 1,897,896 | |
Other assets | | | 2,215 | |
| Total assets | | | 134,706,382 | |
| Liabilities | | | | |
Cash overdraft | | | 96,007 | |
Payable for: | | | | |
| Dividends | | | 321,694 | |
| Investments purchased | | | 302,385 | |
Accrued expenses: | | | | |
| Management fees | | | 50,194 | |
| Trustees fees | | | 769 | |
| Other | | | 58,601 | |
| Total liabilities | | | 829,650 | |
Net assets applicable to common shares | | $ | 133,876,732 | |
Common shares outstanding | | | 12,445,363 | |
Net asset value (“NAV”) per share outstanding | | $ | 10.76 | |
| Net assets applicable to common shares consist of: | | | | |
Common shares, $.01 par value per share | | $ | 124,454 | |
Paid-in surplus | | | 123,843,414 | |
Total distributable earnings | | | 9,908,864 | |
Net assets applicable to common shares | | $ | 133,876,732 | |
Authorized common shares | | Unlimited | |
See accompanying notes to financial statements.
30
Statement of Operations
Six Months Ended September 30, 2019 (Unaudited)
| | | | |
| Investment Income | | $ | 2,292,474 | |
| Expenses | | | | |
Management fees | | | 304,477 | |
Custodian fees | | | 21,407 | |
Trustees fees | | | 1,519 | |
Professional fees | | | 12,161 | |
Shareholder reporting expenses | | | 12,797 | |
Shareholder servicing agent fees | | | 1,487 | |
Stock exchange listing fees | | | 3,463 | |
Investor relations expenses | | | 4,152 | |
Other | | | 8,126 | |
Total expenses | | | 369,589 | |
Net investment income (loss) | | | 1,922,885 | |
| Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) from investments | | | 3,985 | |
Change in net unrealized appreciation (depreciation) of investments | | | 2,467,046 | |
Net realized and unrealized gain (loss) | | | 2,471,031 | |
Net increase (decrease) in net assets applicable to common shares from operations | | $ | 4,393,916 | |
See accompanying notes to financial statements.
31
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | |
| | Six Months | | | Year | |
| | Ended | | | Ended | |
| | 9/30/19 | | | 3/31/19 | |
| Operations | | | | | | |
Net investment income (loss) | | $ | 1,922,885 | | | $ | 4,093,493 | |
Net realized gain (loss) from investments | | | 3,985 | | | | (65,251 | ) |
Change in net unrealized appreciation (depreciation) of investments | | | 2,467,046 | | | | 2,726,565 | |
Net increase (decrease) in net assets applicable to common shares from operations | | | 4,393,916 | | | | 6,754,807 | |
| Distributions to Common Shareholders | | | | | | | | |
Dividends | | | (1,978,813 | ) | | | (3,926,512 | ) |
Decrease in net assets applicable to common shares from distributions to shareholders | | | (1,978,813 | ) | | | (3,926,512 | ) |
Net increase (decrease) in net assets applicable to common shares | | | 2,415,103 | | | | 2,828,295 | |
Net assets applicable to common shares at the beginning of period | | | 131,461,629 | | | | 128,633,334 | |
Net assets applicable to common shares at the end of period | | $ | 133,876,732 | | | $ | 131,461,629 | |
See accompanying notes to financial statements.
32
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33
Financial Highlights (Unaudited)
| |
Selected data for a common share outstanding throughout each period: |
| |
| |
| | |
| | | | | Investment Operations
| | | Less Distributions to Common Shareholders
| | | Common Share | |
| | Beginning 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 | |
Year Ended 3/31:
| | | | | | | | | | | | | | | | |
2020(c) | | $ | 10.56 | | | $ | 0.15 | | | $ | 0.21 | | | $ | 0.36 | | | $ | (0.16 | ) | | $ | — | | | $ | (0.16 | ) | | $ | 10.76 | | | $ | 10.40 | |
2019 | | | 10.34 | | | | 0.33 | | | | 0.21 | | | | 0.54 | | | | (0.32 | ) | | | — | | | | (0.32 | ) | | | 10.56 | | | | 9.96 | |
2018 | | | 10.28 | | | | 0.33 | | | | 0.04 | | | | 0.37 | | | | (0.31 | ) | | | — | | | | (0.31 | ) | | | 10.34 | | | | 9.69 | |
2017 | | | 10.64 | | | | 0.32 | | | | (0.36 | ) | | | (0.04 | ) | | | (0.32 | ) | | | — | * | | | (0.32 | ) | | | 10.28 | | | | 9.93 | |
2016 | | | 10.59 | | | | 0.32 | | | | 0.06 | | | | 0.38 | | | | (0.33 | ) | | | — | | | | (0.33 | ) | | | 10.64 | | | | 10.57 | |
2015 | | | 10.38 | | | | 0.34 | | | | 0.21 | | | | 0.55 | | | | (0.34 | ) | | | — | | | | (0.34 | ) | | | 10.59 | | | | 10.78 | |
34
| | | | | | | | | | | | | | | | | |
| | | | | | | Common Share Supplemental Data/ Ratio Applicable to Common Shares
| |
Common Shares Total Returns
| | | | | | Ratios to Average Net Assets | | | | |
Based on NAV(a) | | | Based on Share Price(a) | | | Ending Net Assets (000) | | | Expenses | | | Net Investment Income (Loss) | | | Portfolio Turnover Rate(b) | |
| | |
| | 3.41 | % | | | 6.02 | % | | $ | 133,877 | | | | 0.56 | %** | | | 2.89 | %** | | | 6 | % |
| | 5.28 | | | | 6.16 | | | | 131,462 | | | | 0.57 | | | | 3.18 | | | | 16 | |
| | 3.65 | | | | 0.67 | | | | 128,633 | | | | 0.58 | | | | 3.20 | | | | 18 | |
| | (0.43 | ) | | | (3.13 | ) | | | 127,963 | | | | 0.58 | | | | 3.01 | | | | 15 | |
| | 3.66 | | | | 1.24 | | | | 132,337 | | | | 0.57 | | | | 3.01 | | | | 20 | |
| | 5.37 | | | | 9.39 | | | | 131,818 | | | | 0.58 | | | | 3.23 | | | | 16 | |
| | |
(a) | Total Return Based on Common Share NAV is the combination of changes in NAV, reinvested dividend income at Common Share 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. |
(b) | 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, Investment Transactions) divided by the average long-term market value during the period. |
(c) | For the six months ended September 30, 2019. |
* | Rounds to less than $0.01 per share. |
** | Annualized. |
See accompanying notes to financial statements.
35
Notes to
Financial Statements (Unaudited)
1. General Information
Fund Information
The fund covered in this report and its corresponding New York Stock Exchange (“NYSE”) symbol is Nuveen Select Maturities Municipal Fund (NIM) (the “Fund”). The Fund is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as a diversified, closed-end management investment company. The Fund was organized as a Massachusetts business trust on July 23, 1992.
The end of the reporting period for the Fund is September 30, 2019, and the period covered by these Notes to Financial Statements is the six months ended September 30, 2019 (the “current fiscal period”).
Investment Adviser
The Fund’s 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 Fund, oversees the management of the Fund’s portfolio, manages the Fund’s business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into a sub-advisory agreement with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolio of the Fund.
2. Significant Accounting Principles
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 net asset value (“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.
Investments and Investment Income
Securities transactions are accounted for as of the trade date for financial reporting purposes. Investment income is comprised of interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes and, is recorded on an accrual basis. Investment income also reflects payment-in-kind (“PIK”) interest and fee income, if any. PIK interest represents income received in the form of securities in lieu of cash. Dividend income is recorded on the ex-dividend date.
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.
Compensation
The Fund pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Fund from the Adviser or its affiliates. The Fund’s 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.
Indemnifications
Under the Fund’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
36
Netting Agreements
In the ordinary course of business, the Fund may enter into transactions subject to enforceable International Swaps and Derivative Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows the 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, the Fund manages its cash collateral and securities collateral on a counterparty basis.
The Fund’s investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
FASB Accounting Standards Update (“ASU”) 2017-08 (“ASU 2017-08”) Premium Amortization on Purchased Callable Debt Securities
The FASB has issued ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. During the current fiscal period, ASU 2017-08 became effective for the Fund and it did not have a material impact on the Fund’s financial statements.
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued ASU 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the disclosures required by Topic 820, Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds’ financial statements.
3. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
The Fund’s investments in securities are recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
Prices of fixed income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality,
37
Notes to Financial Statements (Unaudited) (continued)
type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
| | | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Long-Term Investments: | | | | | | | | | | | | |
| Municipal Bonds* | | $ | — | | | $ | 130,339,511 | | | $ | — | | | $ | 130,339,511 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
| Municipal Bonds* | | | — | | | | 992,263 | | | | — | | | | 992,263 | |
Total | | $ | — | | | $ | 131,331,774 | | | $ | — | | | $ | 131,331,774 | |
| | |
* | Refer to the Fund’s Portfolio of Investments for state classifications. |
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
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 aggregated $8,512,858 and $8,118,793, respectively.
Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Fund has earmarked securities in its portfolio with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Fund did not have any outstanding when-issued/delayed delivery purchase commitments.
Investments in Derivatives
The Fund is authorized to invest in certain derivative instruments such as futures, options and swap contracts. The Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Fund records derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Fund’s investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Although the Fund is authorized to invest in derivative instruments and may do so in the future, it did not make any such investments during the current fiscal period.
Market and Counterparty Credit Risk
In the normal course of business the 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 the Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of the 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.
The 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 the Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when the Fund has an unrealized loss, the Fund has instructed the custodian to pledge assets of the Fund 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
The Fund did not have any share transactions during the current and prior fiscal period.
38
6. Income Tax Information
The 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, the 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 Fund. Net realized capital gains and ordinary income distributions paid by the Fund are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Fund 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 Fund 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 and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAV of the Fund.
The table below presents the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, as determined on a federal income tax basis, as of September 30, 2019.
| | | | |
Tax cost of investments | | $ | 121,602,919 | |
Gross unrealized: | | | | |
| Appreciation | | $ | 10,014,057 | |
| Depreciation | | | (285,202 | ) |
Net unrealized appreciation (depreciation) of investments | | $ | 9,728,855 | |
Permanent differences, primarily due to taxable market discount and federal taxes paid, resulted in reclassifications among the Fund’s components of common shares net assets as of March 31, 2019, the Fund’s 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, 2019, the Fund’s last tax year end, were as follows:
| | | | |
Undistributed net tax-exempt income1 | | $ | 601,727 | |
Undistributed net ordinary income2 | | | 2,742 | |
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 1, 2019, paid on April 1, 2019.
|
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 Fund’s last tax year ended March 31, 2019 was designated for purposes of the dividends paid deduction as follows:
| | | | |
Distributions from net tax-exempt income | | $ | 3,867,601 | |
Distributions from net ordinary income2 | | | 52,688 | |
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.
|
As of March 31, 2019, the Fund’s last tax year end, the Fund 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.
| | | | |
Not subject to expiration: | | | |
| Short-term | | $ | 29,992 | |
| Long-term | | | 33,563 | |
Total | | $ | 63,555 | |
39
Notes to Financial Statements (Unaudited) (continued)
7. Management Fees and Other Transactions with Affiliates
Management Fees
The 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 Fund from the management fees paid to the Adviser.
The Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the 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 the Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is calculated according to the following schedule:
| | | | |
| Average Daily Net Assets* | | Fund-Level Fee Rate | |
For the first $125 million | | | 0.3000 | % |
For the next $125 million | | | 0.2875 | |
For the next $250 million | | | 0.2750 | |
For the next $500 million | | | 0.2625 | |
For the next $1 billion | | | 0.2500 | |
For the next $3 billion | | | 0.2250 | |
For managed assets over $5 billion | | | 0.2125 | |
The annual complex-level fee, payable monthly, is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Fund’s 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. As of September 30, 2019, the complex-level fee rate for the Fund was 0.1570%. |
Other Transactions with Affiliates
The Fund is permitted to purchase or sell securities from or to certain other funds managed by the Adviser (“inter-fund trade”) under specified conditions outlined in procedures adopted by the Board. These procedures have been designed to ensure that any inter-fund trade of securities by the Fund from or to another fund that is, or could be, considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each inter-fund trade is effected at the current market price as provided by an independent pricing service. Unsettled inter-fund trades as of the end of the reporting period are recognized as a component of “Receivable for investments sold” and/or “Payable for investments purchased” on the Statement of Assets and Liabilities, when applicable.
During the current fiscal period, the Fund did not engage in inter-fund trades pursuant to these procedures.
40
8. Borrowing Arrangements
Committed Line of Credit
The Fund, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, $2.65 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include the Fund covered by this shareholder report. The credit facility expires in June 2020 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, the Fund 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 Fund 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, the Fund did not enter into any inter-fund loan activity.
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Additional Fund
Information
| | | | | | |
| Board of Trustees | | | | | |
Margo Cook* | Jack B. Evans | William C. Hunter | Albin F. Moschner | John K. Nelson | Judith M. Stockdale |
Carole E. Stone | Terence J. Toth | Margaret L. Wolff | Robert L. Young | | |
|
* Interested Board Member.
|
|
|
| Fund Manager | Custodian | Legal Counsel | Independent Registered | Transfer Agent and |
Nuveen Fund Advisors, LLC | State Street Bank | 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 | 250 Royall Street |
| | | | | Canton, MA 02021 |
| | | | | (800) 257-8787 |
Portfolio of Investments Information
The 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 DisclosureThe 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. The 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 RepurchasesThe 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, the 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.
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
| ■ | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction. |
| ■ | 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 invest- ment’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. |
| ■ | Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receiv- ables) 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 govern- ments 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. |
| ■ | S&P Municipal Bond Intermediate Index: An unleveraged, market value-weighted index containing all of the bonds in the S&P Municipal Bond Index with maturity dates between 3 and 14.999 years. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| ■ | 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 advisor or call us at (800) 257-8787.
44
Annual Investment Management Agreement Approval Process (Unaudited)
At a meeting held on May 21-23, 2019 (the “May Meeting”), the Board of Trustees (the “Board” and each Trustee, a “Board Member”) of the Fund, including the Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), approved the renewal of the management agreement (the “Investment Management Agreement”) with Nuveen Fund Advisors, LLC (the “Adviser”) pursuant to which the Adviser serves as investment adviser to the Fund and the sub-advisory agreement (the “Sub-Advisory Agreement”) with Nuveen Asset Management, LLC (the “Sub-Adviser”) pursuant to which the Sub-Adviser serves as the sub-adviser to the Fund. Following an initial two-year period, the Board, including the Independent Board Members, is required under the 1940 Act to review and approve the Investment Management Agreement and Sub-Advisory Agreement on behalf of the Fund on an annual basis. The Investment Management Agreement and Sub-Advisory Agreement 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.”
In response to a request on behalf of the Independent Board Members by independent legal counsel, the Board received and reviewed prior to the May Meeting extensive materials specifically prepared for the annual review of Advisory Agreements by the Adviser as well as by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data. The materials provided in connection with the annual review covered a breadth of subject matter including, but not limited to, a description of the nature, extent and quality of services provided by the Fund Advisers; a review of the Sub-Adviser and investment team; 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-Adviser; and a description of indirect benefits received by the Fund Advisers as a result of their relationships with the Nuveen funds. The Board Members held an in-person meeting on April 17-18, 2019 (the “April Meeting”), in part, to review and discuss the performance of the Nuveen funds and the Adviser’s evaluation of the various sub-advisers to the Nuveen funds. The Independent Board Members asked questions and requested additional information that was provided for the May Meeting.
The information prepared specifically for the annual review of the Advisory Agreements supplemented the information provided to the Board and its committees throughout the year. The Board and its committees met regularly during the year and the information provided and topics discussed were relevant to the review of the Advisory Agreements. Some of these reports and other data included, among other things, materials that outlined the investment performance of the Nuveen funds; strategic plans of the Adviser which may impact the services it provides to the Nuveen funds; the review of the Nuveen funds and applicable investment teams; the management of leverage financing for closed-end funds; the secondary market trading of the closed-end funds and any actions to address discounts; compliance, regulatory and risk management matters; the trading practices of the various sub-advisers; valuation of securities; fund expenses; and overall market and regulatory developments. The Board further 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 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
45
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
funds and working with the Fund 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.
In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor or information as determinative or controlling, but rather the decision reflected the comprehensive consideration of all the information provided, 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 Fund with particular focus on the services and enhancements to such services provided during the last year. The Board recognized that the Adviser provides a comprehensive set of services necessary to operate the Nuveen funds in a highly regulated industry and noted that the scope of such services has expanded over the years as a result of regulatory, market and other developments, such as the development of the liquidity management program and expanded compliance programs. Some of the functions the Adviser is responsible for include, but are not limited to: product management (such as analyzing a fund’s position in the marketplace, setting dividends, preparing shareholder and intermediary communications and other due diligence support); investment oversight (such as analyzing fund performance, sub-advisers and investment teams and analyzing trade executions of portfolio transactions, soft dollar practices and securities lending activities); securities valuation services (such as executing the daily valuation process for portfolio securities and developing and recommending changes to valuation policies and procedures); risk management (such as overseeing operational and investment risks, including stress testing); fund administration (such as preparing fund tax returns and other tax compliance services, overseeing the Nuveen 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 oversight and liaison of transfer agent service providers which include registered shareholder customer service and transaction processing); 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 developing and maintaining a compliance program to ensure compliance with applicable laws and regulations, monitoring compliance with applicable fund policies and procedures and adherence to investment restrictions, and evaluating the compliance programs of the Nuveen fund sub-advisers and certain other service providers); legal support and oversight of outside law firms (such as with respect to filing and updating registration statements; maintaining various regulatory registrations; and providing legal interpretations regarding fund activities, applicable regulations and implementation of policies and procedures); and leverage, capital and distribution management services. In reviewing the scope and quality of services, the Board recognized the continued efforts and resources the Adviser and its affiliates have employed to continue to enhance their services for the benefit of the complex as well as particular Nuveen funds over recent years. Such service enhancements have included, but are 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, repositioning funds, merging funds, reviewing and updating investment policies and benchmarks, modifying the composition of certain portfolio management teams and analyzing various data to help devise such improvements; |
46
| ● | Capital Initiatives – continuing to invest capital to support new funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds; |
| ● | Compliance Program Initiatives – continuing efforts to enhance the compliance program through, among other things, internally integrating various portfolio management teams and aligning compliance support accordingly, completing a comprehensive review of existing policies and procedures and revising such policies and procedures as appropriate, enhancing compliance-related technologies and workflows, and optimizing compliance shared services across the organization and affiliates; |
| ● | Risk Management and Valuation Services – continuing efforts to strengthen the risk management functions, including through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates, increasing the efficiency of risk monitoring performed on the Nuveen funds through improved reporting, continuing to implement risk programs designed to provide a more disciplined and consistent approach to identifying and mitigating operational risks, continuing progress on implementing a liquidity program that complies with the new liquidity regulatory requirements and continuing to oversee the daily valuation process; |
| ● | Additional Compliance Services – continuing investment of time and resources necessary to develop the compliance policies and procedures and other related tools necessary to meet the various new regulatory requirements affecting the Nuveen funds that have been adopted over recent years; |
| ● | Government Relations – continuing efforts of various Nuveen teams and affiliates to advocate and communicate their positions with lawmakers and other regulatory bodies on issues that will impact the Nuveen funds; |
| ● | Business Continuity, Disaster Recovery and Information Services – establishing an information security program to help identify and manage information security risks, periodically testing disaster recovery plans, maintaining and updating business continuity plans and providing reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, incident tracking and other relevant information technology risk-related reports; |
| ● | Expanded Dividend Management Services – continuing to expand the services necessary to manage the dividends among the varying types of Nuveen funds that have developed as the Nuveen complex has grown in size and scope; 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, refinancing existing leverage and negotiating reductions in associated leverage expenses; |
| | ●● | Capital Management Services – ongoing capital management efforts through a share repurchase program as well as a shelf offering program that raises additional equity capital in seeking to enhance shareholder value; |
| | ●● | Data and Market Analytics – continuing focus on analyzing data and market analytics to better understand the ownership cycles and secondary market experience of closed-end funds; 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. |
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 the Fund’s portfolio. The Board noted that the Adviser oversees the Sub-Adviser and considered an analysis of the Sub-Adviser provided by the Adviser which
47
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
included, among other things, the Sub-Adviser’s assets under management and changes thereto, a summary of the 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 noted that the Adviser recommended the renewal of the Sub-Advisory Agreement.
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 Fund under each applicable Advisory Agreement.
B. The Investment Performance of the Fund and Fund Advisers
In evaluating the quality of the services provided by the Fund Advisers, the Board also received and considered the investment performance of the Nuveen funds they advise. In this regard, the Board reviewed Fund performance over the quarter, one-, three- and five-year periods ending December 31, 2018 as well as performance data for the first quarter of 2019 ending March 29, 2019. Unless otherwise indicated, the performance data referenced below reflects the periods ended December 31, 2018. The Board considered the Adviser’s analysis of each fund’s performance, with particular focus on funds that were considered performance outliers and the factors contributing to their performance. The Board also noted that it received performance data of the Nuveen funds during its quarterly meetings throughout the year and took into account the discussions that occurred at these Board meetings regarding fund performance. In this regard, in its evaluation of Nuveen fund performance at meetings throughout the year, the Board considered performance information for the funds for different time periods, both absolute and relative to appropriate benchmarks and peers, with particular attention to information indicating underperformance of the respective funds and discussed with the Adviser the reasons for such underperformance.
The Board reviewed both absolute and relative fund performance during the annual review. 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). 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) 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. Depending on the facts and circumstances, however, 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. In addition, the performance data may vary significantly depending on the end date selected, and shareholders may evaluate fund performance based on their own holding period which may differ from the performance periods reviewed by the Board leading to different results. Further, the Board considered a fund’s performance in light of the overall financial market conditions during the respective periods. As noted above, the Board reviewed, among other things, Nuveen fund performance over various periods ended December 31, 2018, and the Board was aware of the market decline in the fourth quarter of 2018 and considered performance from the first quarter of 2019 as well. The Board also noted that a shorter period of underperformance may significantly impact longer term performance.
In addition to the foregoing, the Board recognized the importance of secondary market trading to shareholders and considered the evaluation of premiums and discounts at which the shares of the Nuveen closed-end funds trade to be a continuing priority for the Board. The Board and/or its Closed-end Fund committee consider premium and discount data at each quarterly meeting throughout the year as well as during the annual review.
In their review of performance, the Independent Board Members focused, in particular, on the Adviser’s analysis of Nuveen funds determined to be underperforming performance outliers. The Board recognized that some periods of underperformance may only be temporary while other periods of underperformance may indicate a broader issue that may require a corrective action.
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Accordingly, 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 noted that although the Fund ranked in the fourth quartile of its Performance Peer Group for the five-year period, the Fund ranked in the first quartile for the one-year period and third quartile for the three-year period. In its review, the Board, however, noted that the Performance Peer Group was classified as low for relevancy. In addition, although the Fund’s performance was below the performance of its benchmark for the one-year period, the Fund outperformed its benchmark for the three- and five-year periods. The Board was satisfied with the Fund’s overall performance.
C. Fees, Expenses and Profitability
1. Fees and Expenses
In its annual review, the Board considered the fees paid to the Fund Advisers and the total operating expense ratio of each Nuveen fund. More specifically, the Independent Board Members reviewed, among other things, each fund’s gross and net management fee rates 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 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 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”), including the 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 the Nuveen 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, as applicable. The Board noted that across the Nuveen fund complex, the complex-wide fee breakpoints reduced fees by $51.5 million and fund-level breakpoints reduced fees by $55.1 million in 2018.
With respect to the Sub-Adviser, the Board considered the sub-advisory fee paid to the Sub-Adviser, including any breakpoint schedule, and as described below, comparative data of the fees the Sub-Adviser charges to other clients, if any.
The Independent Board Members noted that the Fund had a net management fee and a net expense ratio that were higher than its respective peer average. The Independent Board Members noted that the Fund’s net expense ratio was higher than the average of the Peer Universe primarily due to the odd composition of the Peer Universe which contained only one non-Nuveen fund. The Independent Board Members noted that the Fund’s net management fee and net expense ratio were below those of the non-Nuveen peer. The Independent Board Members were satisfied with the explanation of the differential. Based on its
49
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
review of the information provided, the Board determined that the 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 reviewed 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 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 addition to the comparative fee data, the Board also reviewed, among other things, a description of the different levels of services provided to certain other clients compared to the services provided to the Nuveen funds 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 noted, among other things, the wide range of services in addition to investment management services provided to the Nuveen funds when the Adviser is principally responsible for all aspects of operating the funds, including the increased regulatory requirements that must be met in managing the funds, the larger account sizes of managed accounts and the increased entrepreneurial, legal and regulatory risks that the Adviser incurs in sponsoring and managing the 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 conjunction with their review of fees, the Independent Board Members considered information regarding Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2018 and 2017. 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 adjusted 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 exchange-traded fund product line that was launched in 2016. The Independent Board Members noted that Nuveen’s net margins were higher in 2018 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 considered the costs of investments in the Nuveen business, including the investment of seed capital in certain Nuveen funds and additional investments in infrastructure and technology. The Independent Board Members also noted that Nuveen’s adjusted margins from its relationships with the Nuveen funds were on the low range compared to the adjusted margins of the peers; however, the Independent Board Members recognized the inherent limitations of the comparative data of other publicly traded peers given that the calculation of profitability is rather subjective and numerous factors (such as types of funds, business mix, cost of capital, methodology to allocate expenses and other factors) can have a significant impact on the results.
The Independent Board Members also reviewed a description of the expense allocation methodology employed to develop the financial information and a summary of the history of changes to the methodology over the ten-year period from 2008 to 2018,
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and recognized that other reasonable allocation methodologies could be employed and lead to significantly different results. The Board noted that two Independent Board Members, along with independent counsel, serve as the Board’s liaisons to review profitability and discuss any proposed changes to the methodology prior to the full Board’s review.
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 2018 and 2017 calendar years to consider the financial strength of TIAA having recognized the importance of having an adviser with significant resources.
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 the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 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 ending December 31, 2018 and the pre- and post-tax revenue margin from 2018 and 2017.
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
With respect to economies of scale, the Independent Board Members noted that although economies of scale are difficult to measure, the Adviser shares the benefits of economies of scale in various ways including breakpoints in the management fee schedule (subject to limited exceptions), fee waivers and/or expense limitations, the pricing of Nuveen funds at scale at inception and investments in its business which can enhance the services provided to the funds for the fees paid. With respect to breakpoint schedules, because the Board had previously recognized that economies of scale may occur not only when the assets of a particular Nuveen fund grow but also when the assets in the complex grow, the Nuveen funds generally pay the Adviser a management fee comprised of a fund-level component and a complex-level component each with its own breakpoint schedule, subject to certain exceptions. In general terms, the breakpoint schedule at the fund level reduces fees as assets in the particular fund pass certain thresholds and the breakpoint schedule at the complex level reduces fees on the Nuveen funds as the eligible assets in the complex pass certain thresholds. The Independent Board Members reviewed, among other things, the fund-level and complex-level fee schedules. In addition, with respect to the Nuveen closed-end funds, the Independent Board Members 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.
In addition, the Independent Board Members recognized the Adviser’s continued reinvestment in its business through, among other things, investments in its business infrastructure and information technology, portfolio accounting system as well as 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.
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 that an affiliate of the
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
Adviser serves as co-manager in the initial public offerings of new closed-end funds for which it may receive revenue and serves as an underwriter on shelf offerings of existing closed-end funds for which it receives compensation. In addition, the Independent Board Members also noted that the Sub-Adviser engages in soft dollar transactions pursuant to which it may receive the benefit of research products and other services provided by broker-dealers executing portfolio transactions on behalf of the applicable Nuveen funds.
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 noted 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 their review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Fund 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 the Fund and that the Advisory Agreements be renewed.
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Notes
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Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
Find out how we can help you.
To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/closed-end-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |  |
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