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Table of Contents
| Chairman's Letter to Shareholders | 4 |
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| Portfolio Managers' Comments | 5 |
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| Fund Leverage | 11 |
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| Common Share Information | 13 |
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| Risk Considerations | 15 |
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| Performance Overview and Holding Summaries | 16 |
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| Shareholder Meeting Report | 20 |
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| Report of Independent Registered Public Accounting Firm | 22 |
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| Portfolios of Investments | 23 |
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| Statement of Assets and Liabilities | 55 |
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| Statement of Operations | 56 |
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| Statement of Changes in Net Assets | 57 |
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| Statement of Cash Flows | 59 |
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| Financial Highlights | 60 |
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| Notes to Financial Statements | 66 |
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| Additional Fund Information | 80 |
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| Glossary of Terms Used in this Report | 81 |
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| Reinvest Automatically, Easily and Conveniently | 83 |
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| Board Members & Officers | 84 |
Chairman's Letter to Shareholders
Dear Shareholders,
Whether politics or the economy will prevail over the financial markets this year has been a much-analyzed question. After the U.S. presidential election, stocks rallied to new all-time highs, bonds tumbled, and business and consumer sentiment grew pointedly optimistic. But, to what extent the White House can translate rhetoric into stronger economic and corporate earnings growth remains to be seen. Stock prices have experienced upward momentum driven by positive economic news, interest rates are rising in light of the next anticipated Federal Reserve (Fed) rate hikes and inflation is ticking higher.
The Trump administration's early policy decisions have caused the markets to reassess their outlooks, cooling the stock market rally and stabilizing bond prices. The White House's pro-growth agenda of tax reform, infrastructure spending and deregulation remains on the table, but there is growing recognition that it may look different than Wall Street had initially expected.
Nevertheless, there is a case for optimism. The jobs recovery, firming wages, the housing market and confidence measures are supportive of continued expansion in the economy. The Fed enacted its second and third interest rate hikes in December 2016 and March 2017, respectively, a vote of confidence that its employment and inflation targets are on track. Economies outside the U.S. have strengthened in recent months, possibly heralding the beginnings of a global synchronized recovery. Furthermore, the populist/nationalist undercurrent that helped deliver President Trump's win and the U.K.'s decision to leave the European Union (or "Brexit") remained in the minority in the Dutch general election in March, easing the political uncertainty surrounding France and Germany's elections later this year.
In the meantime, the markets will be focused on economic sentiment surveys along with "hard" data such as consumer and business spending to gauge the economy's progress. With the Fed now firmly in tightening mode, rate moves that are more aggressive than expected could spook the markets and potentially stifle economic growth. On the political economic front, President Trump's other signature platform plank, protectionism, is arguably anti-growth. We expect some churning in the markets as these issues sort themselves out.
Market volatility readings have been remarkably low of late, but conditions can change quickly. As market conditions evolve, Nuveen remains committed to rigorously assessing opportunities and risks. If you're concerned about how resilient your investment portfolio might be, we encourage you to talk to your financial advisor. 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,
William J. Schneider
Chairman of the Board
April 24, 2017
Portfolio Managers' Comments
Nuveen Arizona Quality Municipal Income Fund (NAZ)
(formerly known as Nuveen Arizona Premium Income Municipal Fund)
Nuveen Michigan Quality Municipal Income Fund (NUM)
(formerly known as Nuveen Michigan Quality Income Municipal Fund)
Nuveen Ohio Quality Municipal Income Fund (NUO)
(formerly known as Nuveen Ohio Quality Income Municipal Fund)
Nuveen Texas Quality Municipal Income Fund (NTX)
(formerly known as Nuveen Texas Quality Income Municipal Fund)
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. Portfolio managers Michael S. Hamilton and Daniel J. Close, CFA, review U.S. economic and municipal market conditions at the national and state levels, key investment strategies and the twelve-month reporting period performance of these four Nuveen Funds. Michael assumed portfolio management responsibility for NAZ in 2011, while Dan has managed NUM, NUO and NTX since 2007.
Prior to market open on December 28, 2016, the Nuveen Arizona Premium Income Municipal Fund (NAZ) was renamed the Nuveen Arizona Quality Municipal Income Fund (NAZ), the Nuveen Michigan Quality Income Municipal Fund (NUM) was renamed the Nuveen Michigan Quality Municipal Income Fund (NUM), the Nuveen Ohio Quality Income Municipal Fund (NUO) was renamed the Nuveen Ohio Quality Municipal Income Fund (NUO) and the Nuveen Texas Quality Income Municipal Fund (NTX) was renamed the Nuveen Texas Quality Municipal Income Fund (NTX).
What factors affected the U.S. economy and the national municipal bond market during the twelve-month reporting period ended February 28, 2017?
The U.S. economy continued to expand at its below-trend rate but showed some signs of strengthening in the latter months of the reporting period. For 2016 as a whole, the Bureau of Economic Analysis reported that the economy grew at an annual rate of 1.6%, as measured by real gross domestic product (GDP), which is the value of goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes. Despite a boost in third-quarter GDP from a short-term jump in exports, economic activity in the other three calendar quarters of 2016 stayed near or below the 2% growth mark.
However, momentum appeared to be building in the second half of the reporting period. The labor market continued to tighten, inflation ticked higher, and consumer confidence and spending were higher. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 4.7% in February 2017 from 4.9% in February 2016 and job gains averaged around 200,000 per month for the past twelve months. Higher oil prices helped drive a steady increase in inflation over this reporting period. The twelve-
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| Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein. |
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor's (S&P), Moody's Investors Service, Inc. (Moody's) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings, while BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. 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.
Portfolio Managers' Comments (continued)
month change in the Consumer Price Index (CPI) rose from the low of 0.8% in July 2016 to 2.7% over the twelve-month reporting period ended February 2017 on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 2.2% during the same period, slightly above the Federal Reserve's (Fed) unofficial longer term inflation objective of 2.0% and the fifteenth consecutive month in the range of 2.1% to 2.3%. The housing market also continued to improve, with historically low mortgage rates and low inventory driving home prices higher. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.9% annual gain in January 2017 (most recent data available at the time this report was prepared) (effective July 26, 2016, the S&P/Case-Shiller U.S. National Home Price Index was renamed the S&P CoreLogic Case-Shiller U.S. National Home Price Index). The 10-City and 20-City Composites reported year-over-year increases of 4.8% and 5.7%, respectively.
The U.S. economic outlook struck a more optimistic tone, prompting the Fed's policy making committee to raise its main benchmark interest rate in December 2016 and again in March 2017 (after the close of this reporting period). These moves were widely expected by the markets and additional increases are anticipated in 2017 as the Fed seeks to gradually "normalize" interest rates.
The political environment was another major influence on the markets over the reporting period. In the U.S., the surprising election of Donald Trump boosted consumer, business and market sentiment, on hopes that Trump's policy agenda of tax reform, infrastructure spending and reduced regulation would reignite the economy. While U.S. stocks rallied particularly strongly in the months following the election, the advance slowed as concerns about the new administration's immigration policy and the Republican's health care bill began to weigh on the markets. Prior to the U.S. presidential election, Britain's vote to leave the European Union, known as Brexit, roiled the markets in late June and July. Although world stock markets largely recovered, sterling dropped to a 31-year low and remained volatile as the U.K. prepared for exit negotiations. Investors also worried whether the undercurrent of populism and nationalism supporting the Trump and Brexit victories could spread across Europe, where several countries have key elections in 2017.
The municipal bond market encountered elevated volatility over the twelve-month reporting period, driven by a sell-off and widening credit spreads following the surprise election results. Prior to the election, municipal bond mutual funds had been drawing steady inflows from September 2015 to October 2016, which kept demand outpacing supply and supported prices. However, beginning in mid-October, demand began to soften in anticipation of a Fed rate hike. Municipal bond prices continued to fall in November after Trump's win triggered rising inflation and interest rate expectations as well as speculation on tax code changes, and in December due to tax-loss selling. A sharp rise in interest rates after the election fueled a reversal in municipal bond fund flow. Municipal bond funds experienced large outflows in the fourth quarter of 2016, especially in the high yield municipal segment, which drove mutual fund managers to sell positions to help meet investor redemptions. At the same time, new issuance spiked in October 2016, further contributing to excess supply and exacerbating falling prices and credit spread widening.
In the reporting period overall, municipal bond issuance nationwide totaled $442.7 billion, an 11.5% gain from the issuance for the twelve-month period ended February 29, 2016. Gross issuance remains robust as issuers continue to actively and aggressively refund their outstanding debt given the low interest rate environment. In these transactions the issuers are issuing new bonds and taking the bond proceeds and redeeming (calling) old bonds. These refunding transactions have ranged from 40%-60% of total issuance over the past few years. Thus, the net issuance (all bonds issued less bonds redeemed) is actually much lower than the gross issuance. In fact, the total municipal bonds outstanding has actually declined in each of the past four calendar years. So, the gross is surging, but the net is not and this was an overall positive technical factor on municipal bond investment performance in recent years. However, since the low in July 2016, interest rates have moved higher on expectations of additional Fed rate hikes, rising inflation and stronger economic growth. Issuers have begun to pull future refunding deals, as higher interest rates have eroded the potential cost savings of replacing older bonds.
Although the municipal bond market experienced widening credit spreads post-election, the trend was more attributable to technical conditions than a change in the fundamental backdrop. Despite the U.S. economy's rather sluggish recovery, improving state and local balance sheets have contributed to generally good credit fundamentals. Higher tax revenue growth, better expense management and a more cautious approach to new debt issuance have led to credit upgrades and stable credit outlooks for many state and local issuers. While some pockets of weakness continued to grab headlines, including Illinois, New Jersey and Puerto Rico, their problems were largely contained, with minimal spillover into the broader municipal market.
How were the economic and market environments in Arizona, Michigan, Ohio and Texas during the twelve-month reporting period ended February 28, 2017?
Arizona's economy continues to expand and is poised for additional growth after experiencing a severe housing market decline. Growth in finance, insurance, and real estate and leasing has led recent improvements in the state's employment picture. Arizona's favorable business environment has lured new business investment such as Lucid Motors' electric vehicle factory and Kudelski's (Swiss cybersecurity firm) North American headquarters into the state. Gains in Arizona housing prices have been driven primarily by the Phoenix market, with the state's smaller metropolitan areas also showing progress. According to the S&P CoreLogic Case-Shiller Index, housing prices in Phoenix rose 5.1% over the twelve months ended January 2017 (most recent data available at the time this report was prepared), compared with a 5.9% price increase nationally. In the job market, the Arizona unemployment rate dropped to a preliminary 5.1% as of February 2017. For Fiscal Year 2016, Arizona enacted a $9.1 billion general fund budget, down 1.2% over Fiscal Year 2015 enacted budget. At the end of Fiscal Year 2013, the state's temporary one-cent sales tax, enacted in 2011, expired, resulting in projected budget gaps for Fiscal Year 2014 and Fiscal Year 2015. Arizona used the accumulated financial cushion generated by the sales taxes to offset these shortfalls. Revenue growth late in the Fiscal Year allowed the state to avoid tapping its rainy day fund in Fiscal Year 2015. Prior to the recent revenue growth, the state had reported it will face budgetary shortfall for Fiscal Year 2017 before becoming in balance by Fiscal Year 2018. Governor Ducey signed its $9.6 billion Fiscal Year 2017 Budget, up 5.6% over the previously enacted budget. It achieves structural balance for the first time since 2007, which provides additional money for K-12 education and transportation infrastructure without raising taxes. Voters narrowly passed Proposition 123 on May 17, 2016, which settles a six-year-old lawsuit over school funding in which the state allegedly ignored Proposition 301 that required automatic inflation adjustments in state aid to education base level. The measure allocates $3.5 billion for education funding over ten years, of which, $1.4 billion would come from the General Fund and the remaining $2 billion from increasing distributions from the state trust land permanent funds. In May 2015, Moody's raised Arizona's issuer rating to Aa2 and changed its outlook for the state to stable, an upgrade from its previous Aa3 rating with positive outlook. S&P also upgraded the State of Arizona's issuer credit rating to AA from AA- and revised its outlook to stable from positive on May 20, 2015. During the twelve months ended February 28, 2017 municipal issuance in Arizona totaled $7.4 billion, a gross issuance increase of 20.9% from the twelve months ended February 29, 2016.
Michigan's economic growth has outpaced many of its Great Lakes region neighbors in recent years, driven by employment growth, continued diversification and multiple years of strong domestic auto sales. Strong domestic auto sales have bolstered growth in Michigan over the economic recovery, but will be less of a positive factor over the next few years. To a large extent, the Michigan economy remains tied to events in the auto industry, as the "Big Three" (General Motors, Ford and Chrysler) continued to rank among the state's five largest employers. Overall, Michigan remained heavily reliant on manufacturing, which represented 13.8% of employment in the state, compared with 8.4% nationally. As of February 2017, Michigan's unemployment rate was 5.3%, nearly the lowest level in the last fifteen years. Favorably, the state's labor force participation rate has remained stable as unemployment has improved, indicating a real improvement in job growth. Following the peak in housing prices in mid-2006, home prices in Michigan declined dramatically and the inventory of foreclosed homes remained elevated in many of the state's hardest-hit metropolitan areas, including Detroit, Warren and Flint. Improvement in the state economy has brought slow, steady improvement in the housing market. According to the S&P CoreLogic Case-Shiller Index of 20 major metropolitan areas, housing prices in Detroit rose 6.2% over the twelve months ended January 2017 (most recent data available at the time this report was prepared), in line with the national average increase of 5.9%. On the fiscal front, as revenues improved, the state has demonstrated a commitment to rebuilding reserves and maintaining structurally balanced operations. Strong income and sales tax revenue growth have helped make this possible. The state's previously depleted budget stabilization/rainy day reserve fund is now on pace to reach $1 billion by the end of Fiscal Year 2018. The state's improved financial and cash position has eliminated the need for cash flow borrowing, which the state hasn't had to resort to since 2011. Revenue growth is projected to slow from 2.9% in Fiscal Year 2017 to 2.3%. This slowdown and a recently quantified gap in infrastructure spending have the potential to pose future budgetary pressure. Michigan's infrastructure investment has fallen behind other states and a recent state commission identified an annual investment gap of approximately $4 billion. Increased funding for roads and transit programs is included in the governor's proposed $56.3 billion budget for Fiscal Year 2018, which overall represents a 2.5% increase over the prior year. As of March 2017, Moody's and S&P rated Michigan general obligation (GO) debt at Aa1 and AA-, respectively. During the twelve months ended February 28, 2017, municipal issuance in Michigan totaled $12.1 billion, a gross issuance increase of 4.9% from the twelve months ended February 28, 2016.
Portfolio Managers' Comments (continued)
Ohio's economy has been growing at a moderate rate, but slowed to 1.9% in the fourth quarter of 2016 and 1.6% for all of 2016. The state's unemployment rate edged up to 5.1%, which is slightly higher than the 4.7% rate for the U.S. as of February 2017. Manufacturing is the largest of Ohio's major employment sectors as the state continues to be a leading producer of steel and autos. Weaker demand for autos and for industrial machinery and metals has led to declines in manufacturing employment this past year and likely in 2017 as well. Offsetting the decline in manufacturing employment is the growth in technical, scientific and professional services positions. Cincinnati and Columbus have become attractive locations for the high-tech industry, venture capital firms and health care startups. The state has experienced a small boom in oil and gas production, due largely to hydraulic fracturing in the Utica shale field in the Appalachian Basin. The count of active rotary rigs has increased since the latter half of 2016, thanks to rising natural gas prices. According to the S&P CoreLogic Case-Shiller Index, housing prices in Cleveland rose 3.9% over the twelve months ended January 2017, compared with a 5.9% price increase nationally. On the fiscal front, Ohio's revenues have softened along with its economic growth. Fiscal year-to-date (through January 2017) General Fund tax receipts are down 1.3% compared to the prior year-to-date collections. Governor Kasich's proposed Fiscal Year 2018-2019 biennial budget continues to reduce the state's reliance on income tax revenue with a 17% income-tax cut over the next two years. The reduction is offset by raising the taxes on liquor, tobacco and gas drilling, as well as expanding the state's sales tax from 5.75% to 6.25%. Ohio has prioritized and rebuilt its Budget Stabilization Fund since the recession. The state raised the statutory target to 8.5% (from 5%) of total general fund revenues. The current Budget Stabilization Fund balance of $2 billion is 9% of general fund revenues. As of February 2017, Moody's and S&P rated Ohio GO debt at Aa1 and AA+, respectively, with stable outlooks. For the twelve months ended February 28, 2017, municipal issuance in Ohio totaled $10.7 billion, a gross issuance increase of 7.9% compared with the twelve months ended February 29, 2016.
Texas' economy is the second largest in the United States. Job growth continues to increase, although at a more subdued pace due to sustained low oil and gas prices. While the state's broader economy is diverse, the energy sector is still a major driver. Mining & manufacturing sector jobs represent 9.7% of total employment, and workforce reductions continue in these sectors. As of October 2016, mining employment declined by 13% and manufacturing declined by 3% over the previous year. The state's unemployment rate increased slightly to 4.9% as of February 2017 compared to 4.6% a year ago. Notably, overall state employment has seen continued growth since 2009. The largest year-over-year employment gains were seen in education & health services (4%), leisure & hospitality (3.8%), and financial activities (2.9%). Texas' largest non-government employment sectors, education & health services, professional & business services, retail trade, and leisure & hospitality services represented approximately 48% of state employment. According to the S&P CoreLogic Case-Shiller Index, housing prices in Dallas posted a year-over-year increase of 8.2% as of January 2017 (most recent data available at the time this report was prepared). On the fiscal front, the state legislature is in the midst of debating the 2018-2019 biennium budget. The state is grappling with a $2 billion budget gap due to weaker tax collections in 2016 and 2017 from persistent weakness in oil and gas prices. The state maintains a large Economic Stabilization Fund, or rainy day fund, and as of Fiscal Year 2016, the fund totaled $10.2 billion or 9.5% of biennial forecasted revenues. The legislature is debating implementation of cuts, use of state funding delays or rainy day fund reserves, or a combination of these tactics to balance the budget. S&P, Moody's and Fitch rate Texas GO debt at Aaa/AAA/AAA, and all have stable outlooks. For the twelve months ended February 28, 2017, municipal issuance in Texas totaled $50.5 billion, a gross issuance increase of 5.7% from the previous twelve months. For the most recent twelve months, Texas was ranked as the second largest state issuer only behind California.
What key strategies were used to manage these Funds during the twelve-month reporting period ended February 28, 2017?
The broad municipal bond market managed a small positive return over the twelve-month reporting period, after the post-election sell-off erased most of the gains from earlier in the reporting period. Ohio's municipal bond market performed better than the national market overall, while the Arizona and Texas markets lagged that of the national market. Michigan performed similarly to the national municipal market in this reporting period.
We continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that we believed had the potential to perform well over the long term. Our trading activity continued to focus on pursuing the Funds' investment objectives. We bought bonds across a range of sectors and credit ratings, generally with intermediate to longer maturities. Purchases in NAZ included higher education, hospital, tax increment and local GO bonds, which were mostly funded with proceeds
from called bonds, the sale of maturing bonds and short-maturity pre-refunded bonds, and a cash inflow from NAZ's participation in an incremental preferred share offering that was conducted as part of the overall management at the Fund's leverage. We also sold the Fund's holdings in non-insured Virgin Islands paper and the remaining Puerto Rico position, due to our concerns about deteriorating credit conditions in these territories.
NUM was particularly active in this reporting period. We continued to try to diversify away from exposure to the City of Detroit and Wayne County. We bought three health care credits, two public higher education credits, three water and sewer bonds and some local GOs in the second half of the reporting period. The proceeds from call activity provided most of the funding for new purchases. We also reinvested the cash from selling a small amount of short maturity, high quality, pre-refunded bonds and from NUM's participation in an incremental preferred share offering that was conducted as part of the overall management of the Fund's leverage.
In the Ohio Fund, we bought one local GO, two water and sewer bonds, one utility issue and two higher education bonds in the latter half of the reporting period. These buys were funded from call proceeds. NTX added three dedicated tax credits and one water and sewer bond. We also invested in Texas Transportation Commission bonds, held in a tender option bond trust. The purchases in the Texas Fund were mainly funded with the proceeds from called bonds, with some cash from selling shorter dated, high quality pre-refunded bonds.
In all four Funds, we took advantage of the changing market conditions during the reporting period to pursue a tax loss swap strategy. We sold some lower coupon bonds that were bought when interest rates were lower and used the proceeds to buy similarly structured bonds with higher coupons, to capitalize on the tax loss (which can be used to offset future taxable gains) and boost the Funds' income distribution capabilities.
As of February 28, 2017, NAZ, NUM, NUO and NTX continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
How did the Funds perform for the twelve-month reporting period ended February 28, 2017?
The tables in each Fund's Performance Overview and Holding Summaries section of this report provide the Funds' total return for the one-year, five-year and ten-year periods ended February 28, 2017. Each Fund's returns on common share net asset value (NAV) are compared with the performance of a corresponding market index.
For the twelve months ended February 28, 2017, the total returns on common share NAV for these four Funds trailed the returns for their respective state's S&P Municipal Bond Index as well as that of the national S&P Municipal Bond Index.
The factors influencing the Funds' performance during this reporting period included yield curve and duration positioning, credit rating allocations and sector allocations. For the Arizona Fund, yield curve and duration positioning detracted from relative performance, primarily due to an underweight in the shortest end (four years and lower) of the yield curve and the underperformance of credits bought between June and December 2016 when interest rates were rising. These underperformers tended to be clustered in the 10 to 12 year range, although the 10 to 12 year duration segment overall performed positively for NAZ over the reporting period. NUM, NUO and NTX benefited from their duration and yield curve positioning. Like NAZ, these three Funds' underweight allocations to the shortest maturity credits were disadvantageous to performance, but overweights to the longest duration segments, which outperformed, contributed positively.
In terms of credit quality, NAZ's positioning aided performance overall. Underweight exposures to the highest quality (AAA and AA rated) bonds and overweight allocations to A rated, BBB rated and unrated bonds added value. Within the unrated category, several long-term holdings in charter school and land-backed bonds (also known as "dirt" bonds) were refunded during the reporting period, which boosts the bonds' returns. Both the Michigan and Ohio Funds' performance was hampered by credit rating allocations. Tobacco securitization bonds comprise a larger proportion of the Michigan and Ohio state indexes than of the corresponding Funds. NUM and NUO were underweight tobacco securitization bonds versus their corresponding state indexes and this underweight was detrimental to the performance of the B rated category overall, where most tobacco bonds tend to be rated. For NTX,
Portfolio Managers' Comments (continued)
the underweight allocation to AAA rated credits was the main positive contributor on a credit ratings basis, as the highest quality bucket underperformed during this reporting period.
Sector performance varied within each state. NAZ benefited from overweights to the pre-refunded and incremental tax (as some of these bonds were refunded during the reporting period) sectors, as well as an underweight to utility bonds with eight to twelve year durations. However, the education and hospital sectors dampened relative gains, due to the lagging performance of bonds bought in the latter half of 2016. NUM was most helped by an overweight to the "other utilities" sector, although its weighting to the pre-refunded sector generated relative underperformance. In Ohio, an underweight allocation to the weak-performing industrial development revenue/pollution control revenue (IDR/PCR) sector contributed positively, offsetting the relative drag from an overweight to the pre-refunded sector. NTX's overall sector positioning was advantageous to relative results. While an overweight to the pre-refunded sector had a negative impact on performance, the Texas Fund's underweight to local GOs outperformed.
We should also note that in terms of individual credit selection, all four Funds generally saw positive results from holdings held over the entire reporting period, but credits bought in the latter half of 2016 tended to underperform because of the sharp rise in yields following the election. Additionally, the Ohio Fund's exposure to energy supplier First Energy, although it represented a small weighting, was a meaningful detractor during this reporting period. The credit performed poorly as the company seeks to exit the power generation business, which has increased uncertainty about its financial health.
An Update Involving Puerto Rico
As noted in the Funds' previous shareholder reports, we continue to monitor situations in the broader municipal market for any impact on the Funds' holdings and performance: the ongoing economic problems of Puerto Rico is one such case. Puerto Rico's continued economic weakening, escalating debt service obligations, and long-standing inability to deliver a balanced budget led to multiple downgrades on its debt over the past two years. Puerto Rico has warned investors since 2014 that the island's debt burden may be unsustainable and the Commonwealth has been exploring various strategies to deal with this burden, including Chapter 9 bankruptcy, which is currently not available by law. On June 30, 2016, President Obama signed the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) into law. The legislation creates a path for Puerto Rico to establish an independent oversight board responsible for managing the government's financial operations and restructure debt. Implementation is expected to take time, as the law focuses on developing a comprehensive five-year fiscal plan.
In terms of Puerto Rico holdings, shareholders should note that NUM, NUO and NTX had no exposure to Puerto Rico debt during this reporting period, while NAZ sold its remaining exposure during the reporting period. The Puerto Rico credits offered higher yields, added diversification and triple exemption (i.e., exemption from most federal, state and local taxes). Puerto Rico general obligation debt is currently rated Caa2/CC/CC (below investment grade) by Moody's, S&P and Fitch, respectively, with negative outlooks.
A Note About Investment Valuations
The municipal securities held by the Funds are valued by the Funds' pricing service using a range of market-based inputs and assumptions. A different municipal pricing service might incorporate different assumptions and inputs into its valuation methodology, potentially resulting in different values for the same securities. These differences could be significant, both as to such individual securities, and as to the value of a given Fund's portfolio in its entirety. Thus, the current net asset value of a Fund's shares may be impacted, higher or lower, if the Fund were to change pricing service, or if its pricing service were to materially change its valuation methodology. On October 4, 2016, the Funds' current municipal bond pricing service was acquired by the parent company of another pricing service. The two services have not yet combined their valuation organizations and process, but they announced in March 2017, that they anticipate doing so sometime in the ensuing several months. Such changes could have an impact on the net asset value of the Fund's shares.
Fund Leverage
IMPACT OF THE FUNDS' LEVERAGE STRATEGY ON PERFORMANCE
One important factor impacting the returns of the Funds relative to their comparative benchmarks was the Funds' use of leverage through their issuance of preferred shares and/or investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income, particularly in the recent market environment where short-term market rates are at or near historical lows, meaning that the short-term rates the Fund has been paying on its leveraging instruments have been much lower than the interest the Fund has been earning on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. However, use of leverage also can expose the Fund to additional price volatility. When a Fund uses leverage, the Fund will experience a greater increase in its net asset value if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its net asset value if the bonds acquired through leverage decline in value, which will make the Fund's net asset value more volatile, and its total return performance more variable over time. In addition, income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. The Fund's use of leverage through inverse floating rate securities was negligible to performance over this reporting period. Leverage from preferred shares had a positive impact on the performance of the Funds over this reporting period.
As of February 28, 2017, the Funds' percentages of leverage are shown in the accompanying table.
| | NAZ | NUM | NUO | NTX | |
| Effective Leverage* | 38.93% | 38.93% | 37.18% | 34.49% | |
| Regulatory Leverage* | 34.84% | 35.50% | 32.84% | 32.15% | |
| * | Effective leverage is a Fund's effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund's portfolio that increase the Fund's investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund's capital structure. A Fund, however, may from time to time borrow on a typically transient basis in connection with its day-to-day operations, primarily in connection with the need to settle portfolio trades. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940. |
Fund Leverage (continued)
THE FUNDS' REGULATORY LEVERAGE
As of February 28, 2017, the Funds have issued and outstanding Institutional MuniFund Term Preferred (iMTP) Shares, Variable Rate MuniFund Term Preferred (VMTP) Shares and/or Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table.
| | | | iMTP Shares | | VMTP Shares | | VRDP Shares | |
| Fund | | | Series | | Shares Issued
at Liquidation
Preference | | | Series | | Shares Issued
at Liquidation
Preference | | | Series | | Shares Issued
at Liquidation
Preference | |
| NAZ | | | — | | $ | — | | | 2019 | | $ | 88,300,000 | | | — | | $ | — | |
| NUM | | | — | | $ | — | | | 2019 | | $ | 173,000,000 | | | — | | $ | — | |
| NUO | | | — | | $ | — | | | — | | $ | — | | | 1 | | $ | 148,000,000 | |
| NTX | | | 2018 | | $ | 72,000,000 | | | — | | $ | — | | | — | | $ | — | |
During the current reporting period, NAZ and NUM each refinanced all of its outstanding Series 2016 VMTP Shares with the issuance of new Series 2019 VMTP Shares. In conjunction with this refinancing, NAZ and NUM issued an additional $9,300,000 and $14,000,000 Series 2019 VMTP Shares at liquidation preference, respectively, to be invested in accordance with each Fund's investment policies. Also during the current reporting period, NUO designated a special rate period until November 15, 2017, for its Series 1 VRDP Shares. In connection with the transition to the special rate period, the VRDP Shares have been remarketed and sold to an institutional investor. During the special rate period, the VRDP Shares will not be remarketed by a remarketing agent, be subject to optional or mandatory tender events, or supported by a liquidity provider. During the period, VRDP dividends will be set monthly at a floating rate based on the predetermined formula.
Refer to Notes to Financial Statements, Note 4 – Fund Shares, Preferred Shares for further details on iMTP, VMTP and VRDP Shares and each Funds' respective transactions.
Common Share Information
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Funds' distributions is current as of February 28, 2017. Each Fund's distribution levels may vary over time based on each Fund's investment activity and portfolio investment value changes.
During the current reporting period, each Fund's distributions to common shareholders were as shown in the accompanying table.
| | | | | | Per Common Share Amounts | | | | |
| Monthly Distributions (Ex-Dividend Date) | | | NAZ | | | NUM | | | NUO | | | NTX | |
| March 2016 | | $ | 0.0665 | | $ | 0.0620 | | $ | 0.0670 | | $ | 0.0545 | |
| April | | | 0.0665 | | | 0.0620 | | | 0.0670 | | | 0.0545 | |
| May | | | 0.0665 | | | 0.0620 | | | 0.0670 | | | 0.0545 | |
| June | | | 0.0665 | | | 0.0620 | | | 0.0650 | | | 0.0545 | |
| July | | | 0.0665 | | | 0.0620 | | | 0.0650 | | | 0.0545 | |
| August | | | 0.0665 | | | 0.0620 | | | 0.0650 | | | 0.0545 | |
| September | | | 0.0600 | | | 0.0585 | | | 0.0600 | | | 0.0545 | |
| October | | | 0.0600 | | | 0.0585 | | | 0.0600 | | | 0.0545 | |
| November | | | 0.0600 | | | 0.0585 | | | 0.0600 | | | 0.0545 | |
| December | | | 0.0570 | | | 0.0560 | | | 0.0585 | | | 0.0545 | |
| January | | | 0.0570 | | | 0.0560 | | | 0.0585 | | | 0.0545 | |
| February 2017 | | | 0.0570 | | | 0.0560 | | | 0.0585 | | | 0.0545 | |
| Total Monthly Per Share Distributions | | $ | 0.7500 | | $ | 0.7155 | | $ | 0.7515 | | $ | 0.6540 | |
| Ordinary Income Distribution* | | $ | 0.0041 | | $ | 0.0006 | | $ | 0.0007 | | $ | 0.0005 | |
| Total Distributions from Net Investment Income | | $ | 0.7541 | | $ | 0.7161 | | $ | 0.7522 | | $ | 0.6545 | |
| Total Distributions from Long-Term Capital Gains* | | $ | — | | $ | 0.0620 | | $ | — | | $ | — | |
| Total Distributions | | $ | 0.7541 | | $ | 0.7781 | | $ | 0.7522 | | $ | 0.6545 | |
| | | | | | | | | | | | | | |
| Yields | | | | | | | | | | | | | |
| Market Yield** | | | 4.81 | % | | 4.98 | % | | 4.69 | % | | 4.58 | % |
| Taxable-Equivalent Yield** | | | 7.00 | % | | 7.23 | % | | 6.83 | % | | 6.36 | % |
| * | Distribution paid in November 2016. |
| | |
| ** | 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 a combined federal and state income tax rate of 31.3%, 31.1% and 31.3% for the Arizona, Michigan and Ohio Funds, respectively. The Texas Fund is based on a federal income tax rate of 28.0%. When comparing a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
Each Fund in this report seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.
Common Share Information (continued)
As of February 28, 2017, the Funds had positive UNII balances for tax purposes. NAZ, NUO and NTX had positive UNII balances, while NUM had a negative UNII balance for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period, were paid from net investment income. If a portion of the Fund's monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund's dividends for the reporting period are presented in this report's Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
COMMON SHARE REPURCHASES
During August 2016, the Funds' Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.
As of February 28, 2017, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table.
| | NAZ | NUM | NUO | NTX | |
| Common shares cumulatively repurchased and retired | — | 207,500 | — | — | |
| Common shares authorized for repurchase | 1,160,000 | 2,080,000 | 1,850,000 | 1,005,000 | |
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
COMMON SHARE EQUITY SHELF PROGRAM
During the current reporting period, NAZ filed an initial registration statement with the Securities and Exchange Commission to issue additional common shares through an equity shelf program, which is not yet effective. Under this program NAZ, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund's NAV per common share.
OTHER COMMON SHARE INFORMATION
As of February 28, 2017, and during the current reporting period, the Funds' common share prices were trading at a premium/ (discount) to their common share NAVs as shown in the accompanying table.
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Common share NAV | | $ | 14.26 | | $ | 15.10 | | $ | 16.34 | | $ | 15.15 | |
| Common share price | | $ | 14.22 | | $ | 13.50 | | $ | 14.97 | | $ | 14.28 | |
| Premium/(Discount) to NAV | | | (0.28) | % | | (10.60) | % | | (8.38) | % | | (5.74) | % |
| 12-month average premium/(discount) to NAV | | | 4.57 | % | | (9.27) | % | | (7.65) | % | | (6.27) | % |
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 Arizona Quality Municipal Income Fund (NAZ)
(formerly known as Nuveen Arizona Premium Income Municipal Fund)
Nuveen Michigan Quality Municipal Income Fund (NUM) (formerly known as
Nuveen Michigan Quality Income Municipal Fund)
Nuveen Ohio Quality Municipal Income Fund (NUO) (formerly known as
Nuveen Ohio Quality Income Municipal Fund)
Nuveen Texas Quality Municipal Income Fund (NTX) (formerly known as
Nuveen Texas Quality Income Municipal Fund)
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. Leverage increases return volatility and magnifies the Fund's potential return and its risks; there is no guarantee a fund's leverage strategy will be successful. State concentration makes the Fund more susceptible to local adverse economic, political, or regulatory changes affecting municipal bond issuers. These and other risk considerations such as inverse floater risk and tax risk are described in more detail on the Fund's web page at www.nuveen.com/NAZ, www.nuveen.com/NUM, www.nuveen.com/NUO and www.nuveen.com/NTX.
| NAZ | |
| | Nuveen Arizona Quality Municipal Income Fund |
| | (formerly known as Nuveen Arizona Premium Income Municipal Fund) |
| | Performance Overview and Holding Summaries as of February 28, 2017 |
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 February 28, 2017
| | Average Annual |
| | 1-Year | 5-Year | 10-Year | |
| NAZ at Common Share NAV | (0.07)% | 4.59% | 5.09% | |
| NAZ at Common Share Price | (5.03)% | 5.00% | 5.68% | |
| S&P Municipal Bond Arizona Index | 0.49% | 3.34% | 4.36% | |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% | |
| 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. |
| 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies. |
Fund Allocation
(% of net assets) | |
| Long-Term Municipal Bonds | 153.9% |
| Other Assets Less Liabilities | 1.3% |
| Net Assets Plus Floating Rate Obligations & VMTP Shares, net of deferred offering costs | 155.2% |
| Floating Rate Obligations | (1.7)% |
| VMTP Shares, net of deferred offering costs | (53.5)% |
| Net Assets | 100% |
Portfolio Composition
(% of total investments) | |
| U.S. Guaranteed | 19.3% |
| Tax Obligation/Limited | 19.0% |
| Education and Civic Organizations | 18.4% |
| Tax Obligation/General | 11.7% |
| Utilities | 10.2% |
| Water and Sewer | 8.9% |
| Health Care | 8.0% |
| Other | 4.5% |
| Total | 100% |
Portfolio Credit Quality
(% of total investment exposure) | |
| AAA/U.S. Guaranteed | 29.9% |
| AA | 34.1% |
| A | 19.5% |
| BBB | 8.8% |
| BB or Lower | 2.7% |
| N/R (not rated) | 5.0% |
| Total | 100% |
| NUM | |
| | Nuveen Michigan Quality Municipal Income Fund |
| | (formerly known as Nuveen Michigan Quality Income Municipal Fund) |
| | Performance Overview and Holding Summaries as of February 28, 2017 |
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 February 28, 2017
| | Average Annual | |
| | 1-Year | 5-Year | 10-Year | |
| NUM at Common Share NAV | (0.40)% | 4.37% | 5.20% | |
| NUM at Common Share Price | 1.74% | 3.33% | 5.30% | |
| S&P Municipal Bond Michigan Index | 0.72% | 3.67% | 4.40% | |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% | |
| 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. |
| 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies. |
Fund Allocation
(% of net assets) | |
| Long-Term Municipal Bonds | 159.1% |
| Other Assets Less Liabilities | 1.9% |
| Net Assets Plus Floating Rate Obligations & VMTP Shares, net of deferred offering costs | 161.0% |
| Floating Rate Obligations | (6.0)% |
| VMTP Shares, net of deferred offering costs | (55.0)% |
| Net Assets | 100% |
Portfolio Composition
(% of total investments) | |
| Tax Obligation/General | 18.7% |
| U.S. Guaranteed | 18.5% |
| Education and Civic Organizations | 16.0% |
| Health Care | 14.6% |
| Water and Sewer | 9.3% |
| Tax Obligation/Limited | 8.0% |
| Utilities | 7.7% |
| Consumer Staples | 3.1% |
| Other | 4.1% |
| Total | 100% |
Portfolio Credit Quality
(% of total investment exposure) | |
| AAA/U.S. Guaranteed | 32.2% |
| AA | 45.9% |
| A | 17.0% |
| BBB | 0.4% |
| BB or Lower | 3.6% |
| N/R (not rated) | 0.9% |
| Total | 100% |
| NUO | |
| | Nuveen Ohio Quality Municipal Income Fund |
| | (formerly known as Nuveen Ohio Quality Income Municipal Fund) |
| | Performance Overview and Holding Summaries as of February 28, 2017 |
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 February 28, 2017
| | Average Annual | |
| | 1-Year | 5-Year | 10-Year | |
| NUO at Common Share NAV | (0.49)% | 4.41% | 5.37% | |
| NUO at Common Share Price | 1.67% | 3.31% | 5.22% | |
| S&P Municipal Bond Ohio Index | 1.60% | 4.36% | 4.46% | |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% | |
| 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. |
| 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies. |
Fund Allocation
(% of net assets) | |
| Long-Term Municipal Bonds | 149.7% |
| Other Assets Less Liabilities | 1.7% |
| Net Assets Plus Floating Rate Obligations & VRDP Shares, net of deferred offering costs | 151.4% |
| Floating Rate Obligations | (2.6)% |
| VRDP Shares, net of deferred offering costs | (48.8)% |
| Net Assets | 100% |
Portfolio Composition
(% of total investments) | |
| Tax Obligation/Limited | 20.8% |
| U.S. Guaranteed | 16.9% |
| Health Care | 16.5% |
| Water and Sewer | 13.0% |
| Tax Obligation/General | 10.9% |
| Transportation | 6.8% |
| Education and Civic Organizations | 5.1% |
| Other | 10.0% |
| Total | 100% |
| | |
Portfolio Credit Quality
(% of total investment exposure) | |
| AAA/U.S. Guaranteed | 25.5% |
| AA | 50.3% |
| A | 13.6% |
| BBB | 5.7% |
| BB or Lower | 4.7% |
| N/R (not rated) | 0.2% |
| Total | 100% |
| NTX | |
| | Nuveen Texas Quality Municipal Income Fund |
| | (formerly known as Nuveen Texas Quality Income Municipal Fund) |
| | Performance Overview and Holding Summaries as of February 28, 2017 |
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 February 28, 2017
| | | Average Annual | |
| | 1-Year | 5-Year | 10-Year | |
| NTX at Common Share NAV | (0.12)% | 4.14% | 5.00% | |
| NTX at Common Share Price | 1.79% | 2.08% | 5.02% | |
| S&P Municipal Bond Texas Index | 0.47% | 3.42% | 4.44% | |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% | |
| 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. |
| 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies. |
Fund Allocation
(% of net assets) | |
| Long-Term Municipal Bonds | 150.8% |
| Other Assets Less Liabilities | 1.7% |
| Net Assets Plus Floating Rate Obligations & iMTP Shares, net of deferred offering costs | 152.5% |
| Floating Rate Obligations | (5.3)% |
| iMTP Shares, net of deferred offering costs | (47.2)% |
| Net Assets | 100% |
| | |
Portfolio Composition
(% of total investments) | |
| Tax Obligation/Limited | 17.8% |
| Tax Obligation/General | 14.5% |
| Transportation | 13.3% |
| U.S. Guaranteed | 13.0% |
| Utilities | 11.4% |
| Water and Sewer | 8.7% |
| Education and Civic Organizations | 8.5% |
| Health Care | 6.7% |
| Other | 6.1% |
| Total | 100% |
| | |
Portfolio Credit Quality
(% of total investment exposure) | |
| AAA/U.S. Guaranteed | 29.4% |
| AA | 36.3% |
| A | 18.9% |
| BBB | 13.2% |
| BB or Lower | 1.9% |
| N/R (not rated) | 0.3% |
| Total | 100% |
Shareholder Meeting Report
The annual meeting of shareholders was held in the offices of Nuveen Investments on November 15, 2016 for NAZ, NUM, NUO and NTX; at this meeting the shareholders were asked to elect Board Members.
| | | | NAZ | | | NUM | |
| | | | Common and | | | | | | Common and | | | | |
| | | | Preferred | | | | | | Preferred | | | | |
| | | | shares voting | | | | | | shares voting | | | | |
| | | | together | | | Preferred | | | together | | | Preferred | |
| | | | as a class | | | Shares | | | as a class | | | Shares | |
| Approval of the Board Members was reached as follows: | | | | | | | | | | | | | |
| Judith M. Stockdale | | | | | | | | | | | | | |
| For | | | 10,448,023 | | | — | | | 18,467,588 | | | — | |
| Withhold | | | 280,766 | | | — | | | 515,241 | | | — | |
| Total | | | 10,728,789 | | | — | | | 18,982,829 | | | — | |
| Carole E. Stone | | | | | | | | | | | | | |
| For | | | 10,450,547 | | | — | | | 18,461,978 | | | — | |
| Withhold | | | 278,242 | | | — | | | 520,851 | | | — | |
| Total | | | 10,728,789 | | | — | | | 18,982,829 | | | — | |
| Margaret L. Wolff | | | | | | | | | | | | | |
| For | | | 10,456,035 | | | — | | | 18,487,986 | | | — | |
| Withhold | | | 272,754 | | | — | | | 494,843 | | | — | |
| Total | | | 10,728,789 | | | — | | | 18,982,829 | | | — | |
| William C. Hunter | | | | | | | | | | | | | |
| For | | | — | | | 883 | | | — | | | 1,730 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 883 | | | — | | | 1,730 | |
| William J. Schneider | | | | | | | | | | | | | |
| For | | | — | | | 883 | | | — | | | 1,730 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 883 | | | — | | | 1,730 | |
| | | | | | | | | | | | | | |
| | | | NUO | | | NTX | |
| | | | Common and | | | | | | Common and | | | | |
| | | | Preferred | | | | | | Preferred | | | | |
| | | | shares voting | | | | | | shares voting | | | | |
| | | | together | | | Preferred | | | together | | | Preferred | |
| | | | as a class | | | Shares | | | as a class | | | Shares | |
| Approval of the Board Members was reached as follows: | | | | | | | | | | | | | |
| Judith M. Stockdale | | | | | | | | | | | | | |
| For | | | 16,543,859 | | | — | | | 8,959,120 | | | — | |
| Withhold | | | 631,492 | | | — | | | 127,695 | | | — | |
| Total | | | 17,175,351 | | | — | | | 9,086,815 | | | — | |
| Carole E. Stone | | | | | | | | | | | | | |
| For | | | 16,564,258 | | | — | | | 8,964,179 | | | — | |
| Withhold | | | 611,093 | | | — | | | 122,636 | | | — | |
| Total | | | 17,175,351 | | | — | | | 9,086,815 | | | — | |
| Margaret L. Wolff | | | | | | | | | | | | | |
| For | | | 16,563,357 | | | — | | | 8,984,368 | | | — | |
| Withhold | | | 611,994 | | | — | | | 102,447 | | | — | |
| Total | | | 17,175,351 | | | — | | | 9,086,815 | | | — | |
| William C. Hunter | | | | | | | | | | | | | |
| For | | | — | | | 808 | | | — | | | 14,400 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 808 | | | — | | | 14,400 | |
| William J. Schneider | | | | | | | | | | | | | |
| For | | | — | | | 808 | | | — | | | 14,400 | |
| Withhold | | | — | | | — | | | — | | | — | |
| Total | | | — | | | 808 | | | — | | | 14,400 | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Nuveen Arizona Quality Municipal Income Fund
(formerly known as Nuveen Arizona Premium Income Municipal Fund)
Nuveen Michigan Quality Municipal Income Fund (formerly known as
Nuveen Michigan Quality Income Municipal Fund)
Nuveen Ohio Quality Municipal Income Fund (formerly known as
Nuveen Ohio Quality Income Municipal Fund)
Nuveen Texas Quality Municipal Income Fund (formerly known as
Nuveen Texas Quality Income Municipal Fund):
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Arizona Quality Municipal Income Fund, Nuveen Michigan Quality Municipal Income Fund, Nuveen Ohio Quality Municipal Income Fund, and Nuveen Texas Quality Municipal Income Fund (the "Funds") as of February 28, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, the statements of cash flows for the year then ended, and the financial highlights for each of the years in the three-year period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented through February 28, 2014 were audited by other auditors whose report dated April 25, 2014 expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 28, 2017, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of February 28, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, their cash flows for the year then ended, and the financial highlights for each of the years in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
April 26, 2017
| NAZ | | |
| | Nuveen Arizona Quality Municipal Income Fund | |
| | (formerly known as Nuveen Arizona Premium Income Municipal Fund) | |
| | Portfolio of Investments | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | LONG-TERM INVESTMENTS – 153.9% (100.0% of Total Investments) | | | | | | |
| | | | MUNICIPAL BONDS – 153.9% (100.0% of Total Investments) | | | | | | |
| | | | Education and Civic Organizations – 28.3% (18.4% of Total Investments) | | | | | | |
| | | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Green Series 2016B: | | | | | | |
| $ | 470 | | 5.000%, 7/01/42 | 7/26 at 100.00 | | AA | $ | 534,978 | |
| | 1,330 | | 5.000%, 7/01/47 | 7/26 at 100.00 | | AA | | 1,512,157 | |
| | 1,500 | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Refunding Green Series 2015A, 5.000%, 7/01/41 | 7/25 at 100.00 | | AA | | 1,689,225 | |
| | 3,480 | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Refunding Series 2013A, 5.000%, 7/01/43 | 7/22 at 100.00 | | AA | | 3,884,724 | |
| | 1,500 | | Arizona Board of Regents, Arizona State University System Revenue Bonds, Series 2015D, 5.000%, 7/01/41 | 7/25 at 100.00 | | AA | | 1,689,225 | |
| | 2,515 | | Arizona Board of Regents, University of Arizona, SPEED Revenue Bonds, Stimulus Plan for Economic and Educational Development, Series 2014, 5.000%, 8/01/44 | 8/24 at 100.00 | | Aa3 | | 2,799,723 | |
| | 2,240 | | Arizona Board of Regents, University of Arizona, System Revenue Bonds, Tender Option Bond Trust 2015-XF0053, 16.088%, 6/01/42 (IF) | 6/22 at 100.00 | | AA– | | 3,238,390 | |
| | 1,400 | | Arizona Board of Regents, University of Arizona, SPEED Revenue Bonds, Stimulus Plan for Economic and Educational Development, Series 2013, 5.000%, 8/01/21 | No Opt. Call | | Aa3 | | 1,605,212 | |
| | 515 | | Arizona Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2017A, 5.125%, 7/01/37 | 7/26 at 100.00 | | BB | | 522,488 | |
| | 2,000 | | Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, Refunding Series 2007, 5.000%, 5/15/31 | 5/22 at 100.00 | | A | | 2,191,640 | |
| | 3,775 | | Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University, Refunding Series 2010, 5.125%, 5/15/40 | 5/20 at 100.00 | | A+ | | 4,118,223 | |
| | 870 | | Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Schools Projects, Series 2016, 5.000%, 7/01/36 | 7/26 at 100.00 | | BB+ | | 878,352 | |
| | 2,095 | | McAllister Academic Village LLC, Arizona, Revenue Bonds, Arizona State University Hassayampa Academic Village Project, Refunding Series 2016, 5.000%, 7/01/37 | 7/26 at 100.00 | | AA– | | 2,320,569 | |
| | 1,875 | | Northern Arizona University, System Revenue Bonds, Refunding Series 2014, 5.000%, 6/01/40 | 6/24 at 100.00 | | A+ | | 2,070,244 | |
| | 910 | | Northern Arizona University, System Revenue Bonds, Series 2012, 5.000%, 6/01/41 | 6/21 at 100.00 | | A+ | | 1,002,975 | |
| | 70 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Basis Schools, Inc. Projects, Series 2016A, 5.000%, 7/01/46 | 7/25 at 100.00 | | BB | | 69,569 | |
| | 900 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Choice Academies Charter Schools Project, Series 2012, 5.625%, 9/01/42 | 9/22 at 100.00 | | BB+ | | 942,651 | |
| | 750 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, fbo Brighter Choice Foundation Charter Middle Schools Project, Albany, New York, Series 2012, 7.500%, 7/01/42 (4) | 7/22 at 100.00 | | N/R | | 262,508 | |
| | 585 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Great Hearts Academies – Veritas Project, Series 2012, 6.300%, 7/01/42 | 7/21 at 100.00 | | BB+ | | 632,098 | |
| | 800 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Great Hearts Academies Project, Series 2016A, 5.000%, 7/01/41 | 7/25 at 100.00 | | BBB– | | 836,864 | |
| | 500 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Project, Series 2014A, 6.750%, 7/01/44 | 7/24 at 100.00 | | Ba1 | | 565,135 | |
| | | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Projects, Series 2015: | | | | | | |
| | 315 | | 5.000%, 7/01/35 | 7/25 at 100.00 | | Ba1 | | 318,619 | |
| | 300 | | 5.000%, 7/01/45 | 7/25 at 100.00 | | Ba1 | | 300,183 | |
| | 650 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Legacy Traditional Schools Projects, Series 2016A, 5.000%, 7/01/41 | 7/26 at 100.00 | | Ba1 | | 652,366 | |
| NAZ | Nuveen Arizona Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Education and Civic Organizations (continued) | | | | | | |
| $ | 440 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Villa Montessori, Inc. Projects, Series 2015, 3.250%, 7/01/25 | No Opt. Call | | BBB– | $ | 427,350 | |
| | 1,995 | | Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Eastern Kentucky University Project, Series 2016, 5.000%, 10/01/36 | 10/26 at 100.00 | | A2 | | 2,197,652 | |
| | 3,675 | | Phoenix Industrial Development Authority, Arizona, Lease Revenue Bonds, Rowan University Project, Series 2012, 5.000%, 6/01/42 (UB) (5) | 6/22 at 100.00 | | A | | 3,953,933 | |
| | 200 | | Pima County Industrial Development Authority, Arizona, Charter School Revenue Bonds, Desert Heights Charter School, Series 2014, 7.250%, 5/01/44 | 5/24 at 100.00 | | N/R | | 217,028 | |
| | 120 | | Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Champion Schools Project, Series 2017, 6.000%, 6/15/37 | 6/26 at 100.00 | | N/R | | 120,496 | |
| | 200 | | Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Edkey Charter Schools Project, Series 2016, 5.250%, 7/01/36 | 7/26 at 100.00 | | BB | | 185,758 | |
| | 35 | | Pima County Industrial Development Authority, Arizona, Education Facility Revenue Bonds, San Tan Montessori School Project, Series 2016, 6.500%, 2/01/48 | 2/24 at 100.00 | | N/R | | 32,921 | |
| | 745 | | Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Carden Traditional Schools Project, Series 2012, 7.500%, 1/01/42 | 1/22 at 100.00 | | B | | 674,679 | |
| | 500 | | Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Noah Webster Schools ? Mesa Project, Series 2015A, 5.000%, 12/15/34 | 6/25 at 100.00 | | BB | | 479,480 | |
| | 730 | | Pinal County Community College District, Arizona, Revenue Bonds, Central Arizona College, Series 2017, 5.000%, 7/01/35 – BAM Insured | 7/26 at 100.00 | | AA | | 825,900 | |
| | 780 | | Student and Academic Services LLC, Arizona, Lease Revenue Bonds, Northern Arizona University Project, Series 2014, 5.000%, 6/01/39 – BAM Insured | 6/24 at 100.00 | | AA | | 864,926 | |
| | 250 | | Sun Devil Energy LLC, Arizona, Revenue Refunding Bonds, Arizona State University Project, Series 2008, 5.000%, 7/01/22 | No Opt. Call | | AA– | | 286,248 | |
| | | | The Industrial Development Authority of the County of Maricopa, Arizona, Education Revenue Bonds, Reid Traditional School Projects, Series 2016: | | | | | | |
| | 520 | | 5.000%, 7/01/36 | 7/26 at 100.00 | | Baa3 | | 549,042 | |
| | 300 | | 5.000%, 7/01/47 | 7/26 at 100.00 | | Baa3 | | 312,762 | |
| | 825 | | Yavapai County Industrial Development Authority, Arizona, Education Revenue Bonds, Arizona Agribusiness and Equine Center, Inc. Project, Series 2011, 7.875%, 3/01/42 | 3/21 at 100.00 | | BB+ | | 930,674 | |
| | 42,660 | | Total Education and Civic Organizations | | | | | 46,696,967 | |
| | | | Health Care – 12.4% (8.0% of Total Investments) | | | | | | |
| | 1,200 | | Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 2014A, 5.000%, 1/01/44 | 1/24 at 100.00 | | AA– | | 1,317,804 | |
| | 5,100 | | Arizona Health Facilities Authority, Hospital System Revenue Bonds, Phoenix Children's Hospital, Refunding Series 2012A, 5.000%, 2/01/42 | 2/22 at 100.00 | | BBB+ | | 5,377,083 | |
| | | | Arizona Health Facilities Authority, Revenue Bonds, Scottsdale Lincoln Hospitals Project, Refunding Series 2014A: | | | | | | |
| | 3,000 | | 5.000%, 12/01/39 | 12/24 at 100.00 | | A2 | | 3,301,140 | |
| | 2,860 | | 5.000%, 12/01/42 | 12/24 at 100.00 | | A2 | | 3,136,905 | |
| | 1,250 | | Maricopa County Industrial Development Authority, Arizona, Revenue Bonds, Banner Health, Refunding Series 2016A, 5.000%, 1/01/32 | 1/27 at 100.00 | | AA– | | 1,443,188 | |
| | 1,120 | | Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale Healthcare, Series 2006C. Re-offering, 5.000%, 9/01/35 – AGC Insured | 9/20 at 100.00 | | AA | | 1,202,947 | |
| | 1,025 | | Yavapai County Industrial Development Authority, Arizona, Hospital Facility Revenue Refunding Bonds, Yavapai Regional Medical Center, Series 2016, 5.000%, 8/01/36 | 8/26 at 100.00 | | Baa1 | | 1,097,314 | |
| | | | Yavapai County Industrial Development Authority, Arizona, Hospital Revenue Bonds, Yavapai Regional Medical Center, Series 2013A: | | | | | | |
| | 210 | | 5.000%, 8/01/19 | No Opt. Call | | Baa1 | | 226,947 | |
| | 1,000 | | 5.250%, 8/01/33 | 8/23 at 100.00 | | Baa1 | | 1,089,680 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Health Care (continued) | | | | | | |
| | | | Yuma Industrial Development Authority, Arizona, Hospital Revenue Bonds, Yuma Regional Medical Center, Series 2014A: | | | | | | |
| $ | 1,000 | | 5.000%, 8/01/22 | No Opt. Call | | A– | $ | 1,143,770 | |
| | 1,000 | | 5.250%, 8/01/32 | 8/24 at 100.00 | | A– | | 1,103,900 | |
| | 18,765 | | Total Health Care | | | | | 20,440,678 | |
| | | | Long-Term Care – 1.8% (1.2% of Total Investments) | | | | | | |
| | 435 | | Arizona Health Facilities Authority, Health Care Facilities Revenue Bonds, The Beatitudes Campus Project, Series 2006, 5.100%, 10/01/22 | 4/17 at 100.00 | | N/R | | 435,535 | |
| | 1,885 | | Phoenix Industrial Development Authority, Arizona, Multi-Family Housing Revenue Bonds, 3rd and Indian Road Assisted Living Project, Series 2016, 5.400%, 10/01/36 | 10/25 at 101.00 | | N/R | | 1,722,174 | |
| | 780 | | Tempe Industrial Development Authority, Arizona, Revenue Bonds, Friendship Village of Tempe Project, Refunding Series 2012A, 6.000%, 12/01/32 | 12/21 at 100.00 | | N/R | | 823,064 | |
| | 3,100 | | Total Long-Term Care | | | | | 2,980,773 | |
| | | | Tax Obligation/General – 18.0% (11.7% of Total Investments) | | | | | | |
| | | | Casa Grande, Arizona, General Obligation Bonds, Refunding Series 2016B: | | | | | | |
| | 1,190 | | 4.000%, 8/01/33 | 8/26 at 100.00 | | AA– | | 1,255,986 | |
| | 620 | | 4.000%, 8/01/34 | 8/26 at 100.00 | | AA– | | 650,789 | |
| | 735 | | Casa Grande, Arizona, General Obligation Bonds, Series 2016A, 3.000%, 8/01/36 | 8/26 at 100.00 | | AA– | | 670,269 | |
| | 2,500 | | Chandler, Arizona, General Obligation Bonds, Refunding Series 2014, 5.000%, 7/01/24 | No Opt. Call | | AAA | | 3,016,350 | |
| | | | Dysart Unified School District Number 89, Maricopa County, Arizona, General Obligation Bonds, Refunding Series 2014: | | | | | | |
| | 1,000 | | 5.000%, 7/01/26 | 7/24 at 100.00 | | AA | | 1,157,640 | |
| | 525 | | 5.000%, 7/01/27 | 7/24 at 100.00 | | AA | | 603,976 | |
| | 2,140 | �� | El Mirage, Arizona, General Obligation Bonds Series 2012, 5.000%, 7/01/42 – AGM Insured | 7/22 at 100.00 | | AA | | 2,304,780 | |
| | 1,500 | | Glendale Union High School District 205, Maricopa County, Arizona, General Obligation Bonds, School Improvement, Project 2015, Series 2016A, 4.000%, 7/01/33 – BAM Insured | 7/26 at 100.00 | | AA | | 1,552,005 | |
| | 1,000 | | Maricopa County Elementary School District 83 Cartwright, Arizona, General Obligation Bonds, School Improvement, Project 2010, Series 2011A, 5.375%, 7/01/30 – AGM Insured | 7/21 at 100.00 | | AA | | 1,126,120 | |
| | 775 | | Maricopa County School District 79 Litchfield Elementary, Arizona, General Obligation Bonds, Series 2011, 5.000%, 7/01/23 | 7/21 at 100.00 | | Aa2 | | 881,950 | |
| | 300 | | Maricopa County Unified School District 60 Higley, Arizona, General Obligation Bonds, School Improvement Project of 2013, Series 2016C, 4.000%, 7/01/33 – AGM Insured | 7/26 at 100.00 | | AA | | 315,273 | |
| | 1,275 | | Maricopa County Union High School District 210 Phoenix, Arizona, General Obligation Bonds, School Improvement & Project of 2011 Series 2017E, 5.000%, 7/01/33 | 7/27 at 100.00 | | Aa2 | | 1,498,992 | |
| | 1,370 | | Pima County Continental Elementary School District 39, Arizona, General Obligation Bonds, Series 2011A, 6.000%, 7/01/30 – AGM Insured | 7/21 at 100.00 | | AA | | 1,583,487 | |
| | 2,895 | | Pima County Unified School District 12 Sunnyside, Arizona, General Obligation Bonds, School Improvement Project 2011, Series 2014D, 5.000%, 7/01/34 – AGM Insured | 7/24 at 100.00 | | AA | | 3,237,450 | |
| | 1,750 | | Pima County Unified School District 6 Marana, Arizona, General Obligation Bonds, School Improvement Project 2010 Series 2011A, 5.000%, 7/01/25 | 7/21 at 100.00 | | A+ | | 1,947,978 | |
| | 1,440 | | Pima County, Arizona, General Obligation Bonds, Refunding Series 2016, 4.000%, 7/01/26 | No Opt. Call | | AA– | | 1,617,034 | |
| | | | Scottsdale, Arizona, General Obligation Bonds, Preserve Acquisition Series 1999: | | | | | | |
| | 1,310 | | 5.000%, 7/01/32 | 7/21 at 100.00 | | AAA | | 1,464,239 | |
| | 1,360 | | 5.000%, 7/01/33 | 7/21 at 100.00 | | AAA | | 1,518,930 | |
| | 1,705 | | 5.000%, 7/01/34 | 7/21 at 100.00 | | AAA | | 1,901,996 | |
| | | | Western Maricopa Education Center District 402, Maricopa County, Arizona, General Obligation Bonds, School Improvement Project 2012, Series 2014B: | | | | | | |
| | 715 | | 4.500%, 7/01/33 | 7/24 at 100.00 | | AA– | | 782,217 | |
| | 665 | | 4.500%, 7/01/34 | 7/24 at 100.00 | | AA– | | 724,777 | |
| | 26,770 | | Total Tax Obligation/General | | | | | 29,812,238 | |
| NAZ | Nuveen Arizona Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited – 29.2% (19.0% of Total Investments) | | | | | | |
| $ | 2,310 | | Arizona Sports and Tourism Authority, Tax Revenue Bonds, Multipurpose Stadium Facility Project, Refunding Senior Series 2012A, 5.000%, 7/01/36 | 7/22 at 100.00 | | A1 | $ | 2,463,453 | |
| | 275 | | Buckeye, Arizona, Excise Tax Revenue Obligations, Refunding Series 2016, 4.000%, 7/01/36 | 7/26 at 100.00 | | AA– | | 281,892 | |
| | 1,000 | | Buckeye, Arizona, Excise Tax Revenue Obligations, Series 2015, 5.000%, 7/01/37 | 7/25 at 100.00 | | AA | | 1,109,190 | |
| | 135 | | Cahava Springs Revitalization District, Cave Creek, Arizona, Special Assessment Bonds, Series 2017A, 7.000%, 7/01/41 (WI/DD, Settling 3/01/17) | 7/27 at 100.00 | | N/R | | 136,316 | |
| | 1,210 | | Eastmark Community Facilities District 1, Mesa, Arizona, General Obligation Bonds, Series 2015, 5.000%, 7/15/39 | 7/25 at 100.00 | | N/R | | 1,179,387 | |
| | 494 | | Eastmark Community Facilities District 1, Mesa, Arizona, Special Assessment Revenue Bonds, Assessment District 1, Series 2013, 5.250%, 7/01/38 | 7/23 at 100.00 | | N/R | | 503,159 | |
| | | | Estrella Mountain Ranch Community Facilities District, Arizona, Special Assessment Bonds, Montecito Assessment District, Series 2007: | | | | | | |
| | 420 | | 5.700%, 7/01/27 | 7/17 at 100.00 | | N/R | | 421,352 | |
| | 450 | | 5.800%, 7/01/32 | 7/17 at 100.00 | | N/R | | 450,963 | |
| | 508 | | Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment Lien Bonds, Series 2001A, 7.875%, 7/01/25 | 4/17 at 100.00 | | N/R | | 509,636 | |
| | | | Festival Ranch Community Facilities District, Buckeye, Arizona, General Obligation Bonds, Series 2012: | | | | | | |
| | 345 | | 5.000%, 7/15/27 – BAM Insured | 7/22 at 100.00 | | AA | | 370,747 | |
| | 1,085 | | 5.000%, 7/15/31 – BAM Insured | 7/22 at 100.00 | | AA | | 1,147,236 | |
| | 500 | | Festival Ranch Community Facilities District, Buckeye, Arizona, General Obligation Bonds, Series 2016, 4.000%, 7/15/36 – BAM Insured | 7/26 at 100.00 | | AA | | 511,780 | |
| | 425 | | Festival Ranch Community Facilities District, Buckeye, Arizona, Special Assessment Revenue Bonds, Assessment District 11, Series 2017, 5.200%, 7/01/37 | 7/27 at 100.00 | | N/R | | 430,058 | |
| | 600 | | Goodyear Community Facilities Utilities District 1, Arizona, General Obligation Bonds, Refunding Series 2016, 4.000%, 7/15/32 | 7/26 at 100.00 | | A1 | | 622,818 | |
| | 1,500 | | Goodyear, Arizona, Community Facilities General District 1, Arizona, General Obligation Refunding Bonds, Series 2013, 5.000%, 7/15/23 | No Opt. Call | | A– | | 1,684,500 | |
| | | | Government of Guam, Business Privilege Tax Bonds, Series 2011A: | | | | | | |
| | 510 | | 5.000%, 1/01/31 | 1/22 at 100.00 | | A | | 528,360 | |
| | 200 | | 5.125%, 1/01/42 | 1/22 at 100.00 | | A | | 206,910 | |
| | 1,500 | | Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/37 | 1/22 at 100.00 | | A | | 1,534,185 | |
| | 1,425 | | Marana, Arizona, Pledged Excise Tax Revenue Bonds, Refunding Series 2013, 5.000%, 7/01/33 | 7/23 at 100.00 | | AA | | 1,578,002 | |
| | 2,401 | | Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006, 4.600%, 1/01/26 | 7/17 at 100.00 | | A2 | | 2,428,323 | |
| | 165 | | Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, Series 2008A, 7.400%, 7/15/33 | 7/18 at 100.00 | | BBB– | | 170,938 | |
| | 200 | | Merrill Ranch Community Facilities District 2, Florence, Arizona, General Obligation Bonds, Series 2016, 5.000%, 7/15/31 | 7/26 at 100.00 | | BBB– | | 210,862 | |
| | 300 | | Page, Arizona, Pledged Revenue Bonds, Refunding Series 2011, 5.000%, 7/01/26 | 7/21 at 100.00 | | AA– | | 331,971 | |
| | 400 | | Parkway Community Facilities District 1, Prescott Valley, Arizona, General Obligation Bonds, Series 2006, 5.350%, 7/15/31 | 4/17 at 100.00 | | N/R | | 368,920 | |
| | 1,010 | | Phoenix Civic Improvement Corporation, Arizona, Transit Excise Tax Revenue Refunding Bonds, Light Rail Project, Series 2013, 5.000%, 7/01/20 | No Opt. Call | | AA | | 1,134,624 | |
| | 2,500 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, JMF-Higley 2012 LLC Project, Series 2012, 5.000%, 12/01/36 | 12/22 at 100.00 | | A | | 2,687,150 | |
| | 580 | | Phoenix Mesa Gateway Airport Authority, Arizona, Special Facility Revenue Bonds, Mesa Project, Series 2012, 5.000%, 7/01/38 (Alternative Minimum Tax) | 7/22 at 100.00 | | AA+ | | 621,151 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited (continued) | | | | | | |
| $ | 1,100 | | Pinal County Industrial Development Authority, Arizona, Correctional Facilities Contract Revenue Bonds, Florence West Prison LLC, Series 2002A, 5.000%, 10/01/18 – ACA Insured | 4/17 at 100.00 | | BBB– | $ | 1,101,848 | |
| | 1,000 | | Pinal County, Arizona, Pledged Revenue Obligations, Series 2014, 5.000%, 8/01/33 | 8/24 at 100.00 | | AA | | 1,125,130 | |
| | | | Queen Creek, Arizona, Excise Tax & State Shared Revenue Obligation Bonds, Refunding Series 2016: | | | | | | |
| | 540 | | 4.000%, 8/01/34 | 8/26 at 100.00 | | AA | | 563,711 | |
| | 545 | | 4.000%, 8/01/36 | 8/26 at 100.00 | | AA | | 563,165 | |
| | 1,000 | | Regional Public Transportation Authority, Arizona, Transportation Excise Tax Revenue Bonds, Maricopa County Public Transportation Fund Series 2014, 5.250%, 7/01/22 | No Opt. Call | | AA+ | | 1,184,750 | |
| | | | San Luis, Arizona, Pledged Excise Tax Revenue Bonds, Refunding Series 2014A: | | | | | | |
| | 1,400 | | 5.000%, 7/01/34 – BAM Insured | 7/24 at 100.00 | | AA | | 1,565,606 | |
| | 2,100 | | 5.000%, 7/01/38 – BAM Insured | 7/24 at 100.00 | | AA | | 2,331,000 | |
| | 3,000 | | Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 2006, 5.000%, 7/01/24 | No Opt. Call | | AAA | | 3,605,970 | |
| | 1,320 | | Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series 2017, 5.000%, 7/01/36 (WI/DD, Settling 3/01/17) | 7/27 at 100.00 | | AAA | | 1,540,255 | |
| | 1,570 | | Tartesso West Community Facility District, Buckeye, Arizona, Limited Tax General Obligation Bonds, Series 2007, 5.900%, 7/15/32 | 7/17 at 100.00 | | N/R | | 1,572,418 | |
| | | | Tempe, Arizona, Excise Tax Revenue Bonds, Refunding Series 2016: | | | | | | |
| | 310 | | 5.000%, 7/01/28 | 7/26 at 100.00 | | AAA | | 369,362 | |
| | 600 | | 5.000%, 7/01/31 | 7/26 at 100.00 | | AAA | | 705,126 | |
| | 4,000 | | Tempe, Arizona, Transit Excise Tax Revenue Obligation Bonds, Refunding Series 2012, 5.000%, 7/01/37 | 7/22 at 100.00 | | AAA | | 4,482,120 | |
| | 1,750 | | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 4.000%, 10/01/22 – AGM Insured | No Opt. Call | | AA | | 1,837,728 | |
| | 750 | | Vistancia West Community Facilities District, Peoria, Arizona, General Obligation Bonds, Series 2016, 3.250%, 7/15/25 | 7/21 at 100.00 | | N/R | | 702,030 | |
| | 1,368 | | Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, Series 2005, 6.000%, 7/01/30 | 4/17 at 100.00 | | N/R | | 1,292,897 | |
| | 44,801 | | Total Tax Obligation/Limited | | | | | 48,166,999 | |
| | | | Transportation – 5.1% (3.3% of Total Investments) | | | | | | |
| | 180 | | Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Junior Lien Series 2010A, 5.000%, 7/01/40 | 7/20 at 100.00 | | A+ | | 196,088 | |
| | | | Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Junior Lien Series 2015A: | | | | | | |
| | 910 | | 5.000%, 7/01/40 | 7/25 at 100.00 | | A+ | | 1,014,241 | |
| | 2,185 | | 5.000%, 7/01/45 | 7/25 at 100.00 | | A+ | | 2,430,266 | |
| | | | Phoenix Civic Improvement Corporation, Arizona, Airport Revenue Bonds, Refunding Senior Lien Series 2013: | | | | | | |
| | 1,785 | | 5.000%, 7/01/30 (Alternative Minimum Tax) | 7/23 at 100.00 | | AA– | | 1,998,468 | |
| | 2,215 | | 5.000%, 7/01/32 (Alternative Minimum Tax) | 7/23 at 100.00 | | AA– | | 2,459,558 | |
| | 395 | | Virgin Islands Port Authority, Marine Revenue Bonds, Refunding Series 2014B, 5.000%, 9/01/44 | 9/24 at 100.00 | | BBB+ | | 410,757 | |
| | 7,670 | | Total Transportation | | | | | 8,509,378 | |
| NAZ | Nuveen Arizona Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed – 29.8% (19.3% of Total Investments) (6) | | | | | | |
| $ | 7,730 | | Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series 2008D, 5.500%, 1/01/38 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | AA– (6) | $ | 8,037,418 | |
| | 1,025 | | Arizona State Transportation Board, Highway Revenue Bonds, Refunding Subordinate Series 2011A, 5.000%, 7/01/36 (Pre-refunded 7/01/21) | 7/21 at 100.00 | | AA+ (6) | | 1,180,831 | |
| | 1,265 | | Gila County Unified School District 10 Payson, Arizona, School Improvement Bonds, Project 2006, Series 2008B, 5.750%, 7/01/28 (Pre-refunded 7/01/18) | 7/18 at 100.00 | | Aa3 (6) | | 1,348,376 | |
| | 2,965 | | Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health Network, Series 2007, 5.000%, 12/01/42 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | N/R (6) | | 3,060,058 | |
| | 150 | | La Paz County, Arizona, Excise Tax Revenue Bonds, Judgement Series 2011A, 4.750%, 7/01/36 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | AA (6) | | 152,105 | |
| | 6,160 | | Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | A (6) | | 6,258,189 | |
| | 1,200 | | Maricopa County Unified School District 95 Queen Creek, Arizona, General Obligation Bonds, Series 2008, 5.000%, 7/01/27 (Pre-refunded 7/01/18) – AGM Insured | 7/18 at 100.00 | | Aa3 (6) | | 1,266,444 | |
| | 680 | | Marley Park Community Facilities District, City of Surprise, Arizona, Limited Tax General Obligation Bonds, Series 2008 (Bank Qualified), 6.100%, 7/15/32 (Pre-refunded 7/15/17) | 7/17 at 100.00 | | N/R (6) | | 694,164 | |
| | 960 | | Merrill Ranch Community Facilities District 1, Florence, Arizona, General Obligation Bonds, Series 2008A, 7.400%, 7/15/33 (Pre-refunded 7/15/18) | 7/18 at 100.00 | | N/R (6) | | 1,045,162 | |
| | 630 | | Mesa, Arizona, Utility System Revenue Bonds, Refunding Series 2002, 5.250%, 7/01/17 – FGIC Insured (ETM) | No Opt. Call | | Aa2 (6) | | 639,954 | |
| | 1,000 | | Palm Valley Community Facility District 3, Goodyear, Arizona, Limited Tax General Obligation Bonds, Series 2007, 5.800%, 7/15/32 (Pre-refunded 7/15/17) | 7/17 at 100.00 | | N/R (6) | | 1,019,690 | |
| | 1,045 | | Phoenix Industrial Development Authority, Arizona, Education Facility Revenue Bonds, Painted Rock Academy Charter School Project, Series 2012A, 7.500%, 7/01/42 (Pre-refunded 7/01/20) | 7/20 at 100.00 | | N/R (6) | | 1,253,509 | |
| | | | Pima County Industrial Development Authority, Arizona, Education Revenue Bonds, Paradise Education Center Project, Series 2010: | | | | | | |
| | 745 | | 6.000%, 6/01/40 (Pre-refunded 6/01/19) | 6/19 at 100.00 | | BB+ (6) | | 825,006 | |
| | 550 | | 6.100%, 6/01/45 (Pre-refunded 6/01/19) | 6/19 at 100.00 | | BB+ (6) | | 610,291 | |
| | 1,000 | | Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Valley Academy Charter School Project, Series 2008, 6.500%, 7/01/38 (Pre-refunded 7/01/18) | 7/18 at 100.00 | | Baa3 (6) | | 1,074,640 | |
| | 1,000 | | Pima County Unified School District 8 Flowing Wells, Arizona, General Obligation Bonds, School Improvement Project 2008 Series 2011B, 5.375%, 7/01/29 (Pre-refunded 7/01/20) | 7/20 at 100.00 | | A+ (6) | | 1,136,690 | |
| | 1,800 | | Pinal County Electrical District 3, Arizona, Electric System Revenue Bonds, Refunding Series 2011, 5.250%, 7/01/36 (Pre-refunded 7/01/21) | 7/21 at 100.00 | | A (6) | | 2,094,192 | |
| | 4,530 | | Pinal County Unified School District 1, Florence, Arizona, General Obligation Bonds, Series 2008C, 5.250%, 7/01/28 (Pre-refunded 7/01/18) | 7/18 at 100.00 | | A (6) | | 4,797,814 | |
| | 2,500 | | Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Tender Option Bond Trust 2016-XL0016, 16.260%, 1/01/38 (Pre-refunded 1/01/18) (IF) (5) | 1/18 at 100.00 | | AA (6) | | 2,855,800 | |
| | 5,000 | | Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Water & Sewer Improvements Project, Series 2010, 5.000%, 7/01/36 (Pre-refunded 7/01/20) | 7/20 at 100.00 | | AAA | | 5,618,699 | |
| | 2,585 | | University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2011, 6.000%, 7/01/39 (Pre-refunded 7/01/21) | 7/21 at 100.00 | | N/R (6) | | 3,082,923 | |
| | | | University Medical Center Corporation, Tucson, Arizona, Hospital Revenue Bonds, Series 2013: | | | | | | |
| | 200 | | 5.000%, 7/01/19 (ETM) | No Opt. Call | | N/R (6) | | 218,078 | |
| | 800 | | 5.000%, 7/01/20 (ETM) | No Opt. Call | | N/R (6) | | 898,152 | |
| | 45,520 | | Total U.S. Guaranteed | | | | | 49,168,185 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Utilities – 15.6% (10.2% of Total Investments) | | | | | | |
| $ | 1,495 | | Apache County Industrial Development Authority, Arizona, Pollution Control Revenue Bonds, Tucson Electric Power Company, Series 20102A, 4.500%, 3/01/30 | 3/22 at 100.00 | | A3 | $ | 1,570,498 | |
| | 1,500 | | Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds, Hoover Project, Series 2001, 5.250%, 10/01/17 | No Opt. Call | | AA | | 1,540,215 | |
| | 1,000 | | Guam Power Authority, Revenue Bonds, Series 2014A, 5.000%, 10/01/39 | 10/24 at 100.00 | | AA | | 1,102,020 | |
| | 4,310 | | Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Refunding Bonds, Southern California Edison Company, Series 2000A, 5.000%, 6/01/35 | 6/20 at 100.00 | | Aa3 | | 4,701,995 | |
| | 370 | | Mesa, Arizona, Utility System Revenue Bonds, Refunding Series 2002, 5.250%, 7/01/17 – FGIC Insured | No Opt. Call | | Aa2 | | 375,794 | |
| | 695 | | Pinal County Electrical District 3, Arizona, Electric System Revenue Bonds, Refunding Series 2016, 5.000%, 7/01/35 | 7/26 at 100.00 | | A | | 781,555 | |
| | 1,500 | | Salt River Project Agricultural Improvement and Power District, Arizona, Electric System Revenue Bonds, Refunding Series 2015A, 5.000%, 12/01/36 | 6/25 at 100.00 | | Aa1 | | 1,716,765 | |
| | | | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc. Prepay Contract Obligations, Series 2007: | | | | | | |
| | 4,500 | | 5.500%, 12/01/29 | No Opt. Call | | BBB+ | | 5,398,919 | |
| | 5,665 | | 5.000%, 12/01/37 | No Opt. Call | | BBB+ | | 6,467,163 | |
| | 2,370 | | Yuma County Industrial Development Authority, Arizona, Exempt Revenue Bonds, Far West Water & Sewer Inc. Refunding, Series 2007A, 6.375%, 12/01/37 (Alternative Minimum Tax) | 12/17 at 100.00 | | N/R | | 2,203,176 | |
| | 23,405 | | Total Utilities | | | | | 25,858,100 | |
| | | | Water and Sewer – 13.7% (8.9% of Total Investments) | | | | | | |
| | | | Central Arizona Water Conservation District, Arizona, Water Delivery O&M Revenue Bonds, Series 2016: | | | | | | |
| | 1,285 | | 5.000%, 1/01/35 | 1/26 at 100.00 | | AA+ | | 1,471,428 | |
| | 345 | | 5.000%, 1/01/36 | 1/26 at 100.00 | | AA+ | | 393,907 | |
| | 500 | | Glendale, Arizona, Water and Sewer Revenue Bonds, Refunding Series 2012, 5.000%, 7/01/28 | 7/22 at 100.00 | | AA | | 573,440 | |
| | 450 | | Goodyear, Arizona, Water and Sewer Revenue Obligations, Refunding Subordinate Lien Series 2016, 5.000%, 7/01/45 – AGM Insured | 7/26 at 100.00 | | AA | | 506,043 | |
| | 2,855 | | Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39 | 7/20 at 100.00 | | A+ | | 3,206,593 | |
| | 500 | | Goodyear, Arizona, Water and Sewer Revenue Obligations, Subordinate Lien Series 2011, 5.500%, 7/01/41 | 7/21 at 100.00 | | AA | | 565,190 | |
| | 500 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013, 5.250%, 7/01/33 | 7/23 at 100.00 | | A– | | 546,380 | |
| | 1,460 | | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2016, 5.000%, 1/01/46 | 7/26 at 100.00 | | A– | | 1,540,169 | |
| | 1,125 | | Lake Havasu City, Arizona, Wastewater System Revenue Bonds, Refunding Senior Lien Series 2015A, 5.000%, 7/01/36 – AGM Insured | 7/25 at 100.00 | | AA | | 1,264,298 | |
| | 1,135 | | Phoenix Civic Improvement Corporation, Arizona, Wastewater System Revenue Bonds, Refunding Junior Lien Series 2014, 5.000%, 7/01/29 | 7/24 at 100.00 | | AA+ | | 1,314,319 | |
| | 2,000 | | Phoenix Civic Improvement Corporation, Arizona, Water System Revenue Bonds, Junior Lien Series 2014A, 5.000%, 7/01/39 | 7/24 at 100.00 | | AAA | | 2,251,920 | |
| | | | Phoenix Civic Improvement Corporation, Arizona, Water System Revenue Bonds, Refunding Junior Lien Series 2001: | | | | | | |
| | 1,250 | | 5.500%, 7/01/21 – FGIC Insured | No Opt. Call | | AAA | | 1,470,325 | |
| | 1,040 | | 5.500%, 7/01/22 – FGIC Insured | No Opt. Call | | AAA | | 1,250,111 | |
| | 1,500 | | Pima County, Arizona, Sewer System Revenue Obligations, Series 2012A, 5.000%, 7/01/26 | 7/22 at 100.00 | | AA | | 1,724,010 | |
| NAZ | Nuveen Arizona Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer (continued) | | | | | | |
| $ | 1,000 | | Pima County, Arizona, Sewer System Revenue Obligations, Series 2014, 5.000%, 7/01/22 | No Opt. Call | | AA | $ | 1,173,130 | |
| | | | Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007: | | | | | | |
| | 740 | | 4.700%, 4/01/22 | 10/17 at 100.00 | | A+ | | 742,509 | |
| | 1,970 | | 4.900%, 4/01/32 | 4/17 at 100.00 | | A+ | | 1,972,246 | |
| | 500 | | Tucson, Arizona, Water System Revenue Bonds, Refunding Series 2013A, 5.000%, 7/01/23 | No Opt. Call | | AA | | 590,065 | |
| | 20,155 | | Total Water and Sewer | | | | | 22,556,083 | |
| $ | 232,846 | | Total Investments (cost $240,588,142) | | | | | 254,189,401 | |
| | | | Floating Rate Obligations – (1.7)% | | | | | (2,755,000 | ) |
| | | | Variable Rate MuniFund Tem Preferred Shares, net of deferred offering costs – (53.5)% (7) | | | | | (88,279,545 | ) |
| | | | Other Assets Less Liabilities – 1.3% | | | | | 1,985,882 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | $ | 165,140,738 | |
| (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. Optional Call Provisions are not covered by the report of independent registered public accounting firm. |
| (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. Ratings are not covered by the report of independent registered public accounting firm. |
| (4) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund's records. |
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (6) | 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (7) | Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 34.7%. |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| NUM | | |
| | Nuveen Michigan Quality Municipal Income Fund | |
| | (formerly known as Nuveen Michigan Quality Income Municipal Fund) | |
| | Portfolio of Investments | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | LONG-TERM INVESTMENTS – 159.1% (100.0% of Total Investments) | | | | | | |
| | | | MUNICIPAL BONDS – 159.1% (100.0% of Total Investments) | | | | | | |
| | | | Consumer Staples – 5.0% (3.1% of Total Investments) | | | | | | |
| $ | 7,100 | | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien Series 2007A, 6.000%, 6/01/34 | 6/17 at 100.00 | | B– | $ | 6,938,972 | |
| | 8,650 | | Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2008A, 6.875%, 6/01/42 | 6/18 at 100.00 | | B2 | | 8,715,220 | |
| | 15,750 | | Total Consumer Staples | | | | | 15,654,192 | |
| | | | Education and Civic Organizations – 25.4% (16.0% of Total Investments) | | | | | | |
| | 1,220 | | Central Michigan University Board of Trustees, General Revenue Bonds, Refunding Series 2014, 5.000%, 10/01/39 | 10/24 at 100.00 | | Aa3 | | 1,359,104 | |
| | 1,000 | | Conner Creek Academy East, Michigan, Public School Revenue Bonds, Series 2007, 5.250%, 11/01/36 | 4/17 at 100.00 | | B | | 694,040 | |
| | 1,255 | | Detroit Community High School, Michigan, Public School Academy Revenue Bonds, Series 2005, 5.750%, 11/01/30 | 4/17 at 100.00 | | B– | | 792,520 | |
| | 2,250 | | Ferris State University, Michigan, General Revenue Bonds, Refunding Series 2016, 5.000%, 10/01/41 | 10/26 at 100.00 | | A1 | | 2,505,443 | |
| | 500 | | Grand Valley State University, Michigan, General Revenue Bonds, Refunding Series 2014B, 5.000%, 12/01/28 | 12/24 at 100.00 | | A+ | | 573,015 | |
| | 990 | | Michigan Finance Authority, Public School Academy Revenue Bonds, Detroit Service Learning Academy Project, Refunding Series 2011, 7.000%, 10/01/31 | 10/21 at 100.00 | | BB– | | 974,833 | |
| | | | Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds, Kettering University, Series 2001: | | | | | | |
| | 865 | | 5.500%, 9/01/17 – AMBAC Insured | 3/17 at 100.00 | | N/R | | 866,471 | |
| | 1,170 | | 5.000%, 9/01/26 – AMBAC Insured | 3/17 at 100.00 | | N/R | | 1,170,211 | |
| | 240 | | Michigan Public Educational Facilities Authority, Charter School Revenue Bonds, American Montessori Academy, Series 2007, 6.500%, 12/01/37 | 12/17 at 100.00 | | N/R | | 242,086 | |
| | 5,000 | | Michigan State University, General Revenue Bonds, Refunding Series 2010C, 5.000%, 2/15/40 | 2/20 at 100.00 | | AA+ | | 5,420,550 | |
| | 7,790 | | Michigan State University, General Revenue Bonds, Series 2013A, 5.000%, 8/15/41 | 8/23 at 100.00 | | AA+ | | 8,786,963 | |
| | 3,690 | | Michigan Technological University, General Revenue Bonds, Refunding Series 2012A, 5.000%, 10/01/34 | 10/21 at 100.00 | | A1 | | 4,108,520 | |
| | 4,000 | | Oakland University, Michigan, General Revenue Bonds, Series 2016, 5.000%, 3/01/47 | 3/26 at 100.00 | | A1 | | 4,430,440 | |
| | 810 | | Saginaw Valley State University, Michigan, General Revenue Bonds, Refunding Series 2016A, 5.000%, 7/01/35 | 7/26 at 100.00 | | A1 | | 903,328 | |
| | | | University of Michigan, General Revenue Bonds, Refunding Series 2017A: | | | | | | |
| | 1,065 | | 5.000%, 4/01/36 | 4/27 at 100.00 | | AAA | | 1,245,209 | |
| | 2,000 | | 5.000%, 4/01/42 | 4/27 at 100.00 | | AAA | | 2,325,200 | |
| | 4,000 | | University of Michigan, General Revenue Bonds, Series 2014A, 5.000%, 4/01/44 | 4/24 at 100.00 | | AAA | | 4,496,640 | |
| | | | University of Michigan, General Revenue Bonds, Series 2015: | | | | | | |
| | 5,735 | | 5.000%, 4/01/40 (UB) (4) | 4/26 at 100.00 | | AAA | | 6,597,315 | |
| | 9,600 | | 5.000%, 4/01/46 (UB) (4) | 4/26 at 100.00 | | AAA | | 10,994,304 | |
| | 2,780 | | Wayne State University, Michigan, General Revenue Bonds, Refunding Series 2008, 5.000%, 11/15/35 – AGM Insured | 11/18 at 100.00 | | Aa3 | | 2,935,346 | |
| | 5,160 | | Wayne State University, Michigan, General Revenue Bonds, Refunding Series 2016A, 5.000%, 11/15/32 | 5/26 at 100.00 | | Aa3 | | 5,851,801 | |
| | 3,700 | | Wayne State University, Michigan, General Revenue Bonds, Series 2013A, 5.000%, 11/15/40 | 11/23 at 100.00 | | Aa3 | | 4,066,485 | |
| NUM | Nuveen Michigan Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Education and Civic Organizations (continued) | | | | | | |
| $ | 525 | | Western Michigan University, General Revenue Bonds, Refunding Series 2011, 5.000%, 11/15/31 | 11/21 at 100.00 | | A1 | $ | 582,052 | |
| | | | Western Michigan University, General Revenue Bonds, Refunding Series 2013: | | | | | | |
| | 750 | | 5.250%, 11/15/33 – AGM Insured | 11/23 at 100.00 | | AA | | 847,508 | |
| | 4,250 | | 5.000%, 11/15/39 – AGM Insured | 11/23 at 100.00 | | AA | | 4,673,640 | |
| | | | Western Michigan University, General Revenue Bonds, Refunding Series 2015A: | | | | | | |
| | 1,500 | | 5.000%, 11/15/40 | 5/25 at 100.00 | | A1 | | 1,649,220 | |
| | 850 | | 5.000%, 11/15/45 | 5/25 at 100.00 | | A1 | | 932,025 | |
| | 72,695 | | Total Education and Civic Organizations | | | | | 80,024,269 | |
| | | | Health Care – 23.2% (14.6% of Total Investments) | | | | | | |
| | 2,000 | | County of Calhoun Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Oaklawn Hospital, Refunding Series 2016, 5.000%, 2/15/47 | 2/27 at 100.00 | | BBB– | | 2,056,880 | |
| | 4,000 | | Grand Traverse County Hospital Financial Authority, Michigan, Revenue Bonds, Munson Healthcare, Refunding Series 2011A, 5.000%, 7/01/29 | 7/21 at 100.00 | | AA– | | 4,364,120 | |
| | | | Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds, Spectrum Health System, Refunding Series 2011C: | | | | | | |
| | 5,500 | | 5.000%, 1/15/31 | 1/22 at 100.00 | | AA | | 5,959,360 | |
| | 2,000 | | 5.000%, 1/15/42 | 1/22 at 100.00 | | AA | | 2,131,600 | |
| | 1,780 | | Michigan Finance Authority, Hospital Revenue Bonds, Beaumont Health Credit Group, Refunding Series 2015A, 5.000%, 8/01/32 | 8/24 at 100.00 | | A1 | | 1,967,915 | |
| | 5,010 | | Michigan Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2016, 5.000%, 11/15/41 | 11/26 at 100.00 | | A | | 5,447,573 | |
| | 4,850 | | Michigan Finance Authority, Hospital Revenue Bonds, MidMichigan Health Credit Group, Refunding Series 2014, 5.000%, 6/01/39 | 6/24 at 100.00 | | A+ | | 5,289,750 | |
| | 3,930 | | Michigan Finance Authority, Hospital Revenue Bonds, Oakwood Obligated Group, Refunding Series 2013, 5.000%, 8/15/31 | 8/23 at 100.00 | | A1 | | 4,304,018 | |
| | 6,060 | | Michigan Finance Authority, Hospital Revenue Bonds, Sparrow Obligated Group, Refunding Series 2015, 5.000%, 11/15/45 | 5/25 at 100.00 | | A+ | | 6,604,309 | |
| | 3,000 | | Michigan Finance Authority, Hospital Revenue Bonds, Sparrow Obligated Group, Series 2012, 5.000%, 11/15/42 | 11/22 at 100.00 | | A+ | | 3,270,000 | |
| | 5,000 | | Michigan Finance Authority, Michigan, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2016MI, 5.000%, 12/01/45 | 6/26 at 100.00 | | AA– | | 5,505,350 | |
| | 1,900 | | Michigan Finance Authority, Michigan, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2017MI, 5.000%, 12/01/30 | 6/27 at 100.00 | | AA– | | 2,193,664 | |
| | | | Michigan Finance Authority, Revenue Bonds, Oakwood Obligated Group, Refunding Series 2012: | | | | | | |
| | 1,000 | | 5.000%, 11/01/25 | 11/22 at 100.00 | | A1 | | 1,118,360 | |
| | 1,000 | | 5.000%, 11/01/26 | 11/22 at 100.00 | | A1 | | 1,112,710 | |
| | 3,750 | | 5.000%, 11/01/42 | 11/22 at 100.00 | | A1 | | 4,009,163 | |
| | 9,615 | | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39 | 12/21 at 100.00 | | AA– | | 10,787,644 | |
| | 1,000 | | Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2009C, 5.000%, 12/01/48 | 6/22 at 100.00 | | AA– | | 1,066,430 | |
| | 5,380 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital Obligated Group, Refunding Series 2014D, 5.000%, 9/01/39 | 3/24 at 100.00 | | A1 | | 5,818,631 | |
| | 66,775 | | Total Health Care | | | | | 73,007,477 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Housing/Multifamily – 2.9% (1.8% of Total Investments) | | | | | | |
| $ | 2,675 | | Michigan Housing Development Authority, FNMA Limited Obligation Multifamily Housing Revenue Bonds, Parkview Place Apartments, Series 2002A, 5.550%, 12/01/34 (Alternative Minimum Tax) | 12/20 at 101.00 | | AA | $ | 2,879,076 | |
| | 1,405 | | Michigan Housing Development Authority, Multifamily Housing Revenue Bonds, Series 1988A, 3.875%, 11/01/17 (Alternative Minimum Tax) | 4/17 at 100.00 | | AA | | 1,408,021 | |
| | 1,825 | | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2010A, 5.000%, 10/01/35 | 10/20 at 100.00 | | AA | | 1,935,577 | |
| | 1,725 | | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2012A-2, 4.625%, 10/01/41 | 4/22 at 100.00 | | AA | | 1,772,558 | |
| | 1,000 | | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 2012D, 4.000%, 10/01/42 | 4/22 at 100.00 | | AA | | 1,027,810 | |
| | 8,630 | | Total Housing/Multifamily | | | | | 9,023,042 | |
| | | | Housing/Single Family – 0.6% (0.4% of Total Investments) | | | | | | |
| | 1,830 | | Michigan Housing Development Authority, Single Family Homeownership Revenue Bonds, Series 2010C, 5.500%, 12/01/28 (Alternative Minimum Tax) | 6/20 at 100.00 | | AA+ | | 1,911,527 | |
| | | | Tax Obligation/General – 29.8% (18.7% of Total Investments) | | | | | | |
| | 2,310 | | Ann Arbor Public School District, Washtenaw County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/29 | 5/22 at 100.00 | | Aa1 | | 2,628,318 | |
| | 840 | | Ann Arbor Public School District, Washtenaw County, Michigan, General Obligation Bonds, School Building & Site Series 2015, 5.000%, 5/01/24 | No Opt. Call | | Aa2 | | 990,629 | |
| | 895 | | Bloomfield Township, Michigan, General Obligation Bonds, Refunding Series 2016, 5.000%, 5/01/28 | 5/26 at 100.00 | | AAA | | 1,063,681 | |
| | | | Byron Center Public Schools, Kent County, Michigan, General Obligation Bonds, Series 2012: | | | | | | |
| | 1,000 | | 4.000%, 5/01/32 | 5/21 at 100.00 | | AA– | | 1,021,960 | |
| | 500 | | 4.000%, 5/01/33 | 5/21 at 100.00 | | AA– | | 509,615 | |
| | 1,135 | | Caledonia Community Schools, Kent, Allegan and Barry Counties, Michigan, General Obligation Bonds, School Building & Site Series 2014, 5.000%, 5/01/39 | 5/24 at 100.00 | | AA– | | 1,251,224 | |
| | 875 | | Charlotte Public School District, Easton County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/20 | No Opt. Call | | AA– | | 973,438 | |
| | | | Comstock Park Public Schools, Kent County, Michigan, General Obligation Bonds, School Building & Site, Series 2011B: | | | | | | |
| | 1,200 | | 5.500%, 5/01/36 | 5/21 at 100.00 | | AA– | | 1,347,936 | |
| | 2,190 | | 5.500%, 5/01/41 | 5/21 at 100.00 | | AA– | | 2,459,983 | |
| | | | Grand Rapids and Kent County Joint Building Authority, Michigan, Limited Tax General Obligation Bonds, Devos Place Project, Series 2001: | | | | | | |
| | 8,900 | | 0.000%, 12/01/25 | No Opt. Call | | AAA | | 7,040,879 | |
| | 3,000 | | 0.000%, 12/01/26 | No Opt. Call | | AAA | | 2,291,280 | |
| | 100 | | 0.000%, 12/01/27 | No Opt. Call | | AAA | | 73,962 | |
| | 4,305 | | 0.000%, 12/01/29 | No Opt. Call | | AAA | | 2,966,274 | |
| | | | Grand Rapids Building Authority, Kent County, Michigan, General Obligation Bonds, Refunding Series 2011: | | | | | | |
| | 560 | | 5.000%, 10/01/28 | 10/21 at 100.00 | | AA | | 629,675 | |
| | 500 | | 5.000%, 10/01/30 | 10/21 at 100.00 | | AA | | 556,710 | |
| | 500 | | 5.000%, 10/01/31 | 10/21 at 100.00 | | AA | | 556,710 | |
| | | | Grand Rapids Public Schools, Kent County, Michigan, General Obligation Bonds, Refunding School Building & Site Series 2016: | | | | | | |
| | 1,700 | | 5.000%, 5/01/24 – AGM Insured | No Opt. Call | | AA | | 1,984,835 | |
| | 4,205 | | 5.000%, 5/01/28 – AGM Insured | 5/26 at 100.00 | | AA | | 4,922,878 | |
| | 1,000 | | 5.000%, 5/01/38 – AGM Insured | 5/26 at 100.00 | | AA | | 1,120,970 | |
| NUM | Nuveen Michigan Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/General (continued) | | | | | | |
| | | | Kent County, Michigan, General Obligation Bonds, Limited Tax Capital Improvement Series 2016: | | | | | | |
| $ | 1,000 | | 5.000%, 6/01/31 | 6/26 at 100.00 | | AAA | $ | 1,180,080 | |
| | 1,445 | | 5.000%, 6/01/34 | 6/26 at 100.00 | | AAA | | 1,678,310 | |
| | 1,000 | | 5.000%, 6/01/35 | 6/26 at 100.00 | | AAA | | 1,157,080 | |
| | | | Kent County, Michigan, General Obligation Bonds, Limited Tax Capital Improvement Series 2017A: | | | | | | |
| | 1,570 | | 5.000%, 6/01/36 | 6/27 at 100.00 | | AAA | | 1,833,336 | |
| | 1,650 | | 5.000%, 6/01/37 | 6/27 at 100.00 | | AAA | | 1,922,019 | |
| | 1,025 | | Kent County, Michigan, General Obligation Bonds, Limited Tax Series 2015, 5.000%, 1/01/34 | 1/25 at 100.00 | | AAA | | 1,168,029 | |
| | 3,440 | | Kent County, Michigan, General Obligation Bonds, Refunding Limited Tax Series 2015, 5.000%, 1/01/31 | 1/25 at 100.00 | | AAA | | 3,995,663 | |
| | | | Lake Saint Claire Clean Water Drain Drainage District, Macomb County, Michigan, General Obligation Bonds, Series 2013: | | | | | | |
| | 1,000 | | 5.000%, 10/01/25 | 10/23 at 100.00 | | AA+ | | 1,150,710 | |
| | 1,020 | | 5.000%, 10/01/26 | 10/23 at 100.00 | | AA+ | | 1,166,227 | |
| | 1,000 | | L'Anse Creuse Public Schools, Macomb County, Michigan, General Obligation Bonds, Refunding Series 2015, 5.000%, 5/01/23 | No Opt. Call | | AA– | | 1,162,100 | |
| | | | Lansing School District, Ingham County, Michigan, General Obligation Bonds, Series 2016I: | | | | | | |
| | 1,345 | | 5.000%, 5/01/26 | No Opt. Call | | AA– | | 1,583,334 | |
| | 2,245 | | 5.000%, 5/01/33 | 5/26 at 100.00 | | AA– | | 2,527,870 | |
| | 2,085 | | 5.000%, 5/01/38 | 5/26 at 100.00 | | AA– | | 2,316,435 | |
| | 2,200 | | 5.000%, 5/01/41 | 5/26 at 100.00 | | AA– | | 2,440,548 | |
| | 4,000 | | Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2011A, 5.000%, 12/01/22 | 12/21 at 100.00 | | Aa1 | | 4,604,920 | |
| | 1,950 | | Michigan State, General Obligation Bonds, Environmental Program, Refunding Series 2015A, 5.000%, 12/01/28 | 12/25 at 100.00 | | Aa1 | | 2,306,831 | |
| | 1,000 | | Michigan State, General Obligation Bonds, Environmental Program, Series 2014A, 5.000%, 12/01/28 | 12/24 at 100.00 | | Aa1 | | 1,170,280 | |
| | 2,500 | | Montrose School District, Michigan, School Building and Site Bonds, Series 1997, 6.000%, 5/01/22 – NPFG Insured | No Opt. Call | | Aa2 | | 2,822,500 | |
| | 2,945 | | Muskegon Community College District, Michigan, General Obligation Bonds, Community Facility Series 2013I, 5.000%, 5/01/38 – BAM Insured | 5/24 at 100.00 | | AA | | 3,258,436 | |
| | | | Muskegon County, Michigan, General Obligation Wastewater Bonds, Management System 1, Refunding Series 2015: | | | | | | |
| | 1,350 | | 5.000%, 11/01/33 | 11/25 at 100.00 | | AA | | 1,519,682 | |
| | 1,730 | | 5.000%, 11/01/36 | 11/25 at 100.00 | | AA | | 1,917,169 | |
| | | | Port Huron, Michigan, General Obligation Bonds, Refunding & Capital Improvement Series 2011: | | | | | | |
| | 1,585 | | 5.000%, 10/01/31 – AGM Insured | 10/21 at 100.00 | | AA | | 1,778,703 | |
| | 640 | | 5.250%, 10/01/37 – AGM Insured | 10/21 at 100.00 | | AA | | 719,213 | |
| | | | Port Huron, Michigan, General Obligation Bonds, Series 2011B: | | | | | | |
| | 530 | | 5.000%, 10/01/31 – AGM Insured | 10/21 at 100.00 | | AA | | 588,894 | |
| | 800 | | 5.250%, 10/01/40 – AGM Insured | 10/21 at 100.00 | | AA | | 898,272 | |
| | 500 | | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, Refunding Series 2012, 5.000%, 5/01/19 | No Opt. Call | | AA– | | 539,725 | |
| | 625 | | Royal Oak City School District, Oakland County, Michigan, General Obligation Bonds, Refunding Series 2014, 5.000%, 5/01/20 | No Opt. Call | | Aa2 | | 696,344 | |
| | 1,435 | | South Haven Public Schools, Van Buren County, Michigan, General Obligation Bonds, School Building & Site, Series 2014A, 5.000%, 5/01/41 – BAM Insured | 5/24 at 100.00 | | AA | | 1,585,804 | |
| | 350 | | South Haven, Van Buren County, Michigan, General Obligation Bonds, Capital Improvement Series 2009, 5.125%, 12/01/33 – AGC Insured | 12/19 at 100.00 | | AA | | 379,397 | |
| | 550 | | Troy School District, Oakland County, Michigan, General Obligation Bonds, Refunding Series 2015, 5.000%, 5/01/26 | 5/25 at 100.00 | | AA | | 643,407 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/General (continued) | | | | | | |
| | | | Van Dyke Public Schools, Macomb County, Michigan, General Obligation Bonds, School Building & Site, Series 2008: | | | | | | |
| $ | 1,110 | | 5.000%, 5/01/31 – AGM Insured | 5/18 at 100.00 | | Aa1 | $ | 1,152,413 | |
| | 2,150 | | 5.000%, 5/01/38 – AGM Insured | 5/18 at 100.00 | | Aa1 | | 2,233,098 | |
| | 1,600 | | Walled Lake Consolidated School District, Oakland County, Michigan, General Obligation Bonds, School Building & Site Series 2014, 5.000%, 5/01/40 | 11/23 at 100.00 | | Aa1 | | 1,764,720 | |
| | 1,560 | | Williamston Community School District, Michigan, Unlimited Tax General Obligation QSBLF Bonds, Series 1996, 5.500%, 5/01/25 – NPFG Insured | No Opt. Call | | Aa2 | | 1,771,099 | |
| | 1,475 | | Willow Run Community Schools, Washtenaw County, Michigan, General Obligation Bonds, Refunding Series 2011, 4.500%, 5/01/31 – AGM Insured | 5/21 at 100.00 | | AA | | 1,600,390 | |
| | 88,125 | | Total Tax Obligation/General | | | | | 93,623,995 | |
| | | | Tax Obligation/Limited – 12.7% (8.0% of Total Investments) | | | | | | |
| | 2,200 | | Lansing Township Downtown Development Authority, Ingham County, Michigan, Tax Increment Bonds, Series 2013A, 5.950%, 2/01/42 | 2/24 at 103.00 | | N/R | | 2,407,504 | |
| | | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Regional Convention Facility Authority Local Project, Series 2014H-1: | | | | | | |
| | 1,240 | | 5.000%, 10/01/20 | 10/19 at 100.00 | | AA– | | 1,343,131 | |
| | 2,000 | | 5.000%, 10/01/24 | 10/23 at 100.00 | | AA– | | 2,299,440 | |
| | 2,000 | | 5.000%, 10/01/25 | 10/24 at 100.00 | | AA– | | 2,305,640 | |
| | 11,025 | | 5.000%, 10/01/39 | 10/24 at 100.00 | | AA– | | 12,126,503 | |
| | 4,000 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series 2015-I, 5.000%, 4/15/38 | 10/25 at 100.00 | | Aa2 | | 4,434,040 | |
| | 1,500 | | Michigan State Building Authority, Revenue Bonds, Facilities Program, Refunding Series 2016-I, 5.000%, 4/15/41 | 10/26 at 100.00 | | Aa2 | | 1,673,445 | |
| | | | Michigan State Trunk Line Fund Bonds, Series 2011: | | | | | | |
| | 1,100 | | 5.000%, 11/15/24 | 11/21 at 100.00 | | AA+ | | 1,247,191 | |
| | 1,750 | | 5.000%, 11/15/29 | 11/21 at 100.00 | | AA+ | | 1,977,448 | |
| | 1,605 | | 5.000%, 11/15/31 | 11/21 at 100.00 | | AA+ | | 1,805,240 | |
| | 1,160 | | 4.000%, 11/15/32 | 11/21 at 100.00 | | AA+ | | 1,208,001 | |
| | 1,970 | | 5.000%, 11/15/36 | 11/21 at 100.00 | | AA+ | | 2,206,400 | |
| | 1,370 | | Michigan State Trunk Line Fund Refunding Bonds, Refunding Series 2015, 5.000%, 11/15/22 | No Opt. Call | | AA+ | | 1,616,490 | |
| | | | Michigan State, Comprehensive Transportation Revenue Bonds, Refunding Series 2015: | | | | | | |
| | 1,065 | | 5.000%, 11/15/19 | No Opt. Call | | AA+ | | 1,176,420 | |
| | 1,950 | | 5.000%, 11/15/29 | 11/24 at 100.00 | | AA+ | | 2,267,363 | |
| | 35,935 | | Total Tax Obligation/Limited | | | | | 40,094,256 | |
| | | | Transportation – 3.0% (1.9% of Total Investments) | | | | | | |
| | 4,500 | | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Airport, Refunding Series 2011A, 5.000%, 12/01/21 (Alternative Minimum Tax) | No Opt. Call | | A | | 5,078,385 | |
| | 4,000 | | Wayne County Airport Authority, Michigan, Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2012A, 5.000%, 12/01/42 – AGM Insured | 12/22 at 100.00 | | AA | | 4,297,280 | |
| | 8,500 | | Total Transportation | | | | | 9,375,665 | |
| | | | U.S. Guaranteed – 29.4% (18.5% of Total Investments) (5) | | | | | | |
| | 2,200 | | Ann Arbor, Michigan, General Obligation Bonds, Court & Police Facilities Capital Improvement Series 2008, 5.000%, 5/01/38 (Pre-refunded 5/01/18) | 5/18 at 100.00 | | AA+ (5) | | 2,307,822 | |
| | 100 | | Battle Creek School District, Calhoun County, Michigan, General Obligation Bonds, School Building & Site Series 2007, 5.000%, 5/01/37 (Pre-refunded 5/01/17) – AGM Insured | 5/17 at 100.00 | | Aa1 (5) | | 100,767 | |
| | 425 | | Detroit, Michigan, Sewage Disposal System Revenue Bonds, Second Lien Series 2006A, 5.500%, 7/01/36 (Pre-refunded 7/01/18) – BHAC Insured | 7/18 at 100.00 | | AA+ (5) | | 451,422 | |
| NUM | Nuveen Michigan Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed (5) (continued) | | | | | | |
| | | | Grand Rapids, Kent County, Michigan, General Obligation Bonds, Limited Tax Capital Improvement Series 2007: | | | | | | |
| $ | 860 | | 5.000%, 9/01/24 (Pre-refunded 9/01/17) – NPFG Insured | 9/17 at 100.00 | | AA (5) | $ | 878,903 | |
| | 2,000 | | 5.000%, 9/01/27 (Pre-refunded 9/01/17) – NPFG Insured | 9/17 at 100.00 | | AA (5) | | 2,043,960 | |
| | 1,190 | | Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Series 2008, 5.000%, 1/01/38 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | Aa1 (5) | | 1,232,245 | |
| | 2,605 | | Grand Rapids, Michigan, Water Supply System Revenue Bonds, Series 2009, 5.100%, 1/01/39 (Pre-refunded 1/01/19) – AGC Insured | 1/19 at 100.00 | | AA (5) | | 2,800,870 | |
| | 1,800 | | Jackson County Hospital Finance Authority, Michigan, Hospital Revenue Bonds, Allegiance Health, Refunding Series 2010A, 5.000%, 6/01/37 (Pre-refunded 6/01/20) – AGM Insured | 6/20 at 100.00 | | AA (5) | | 2,016,054 | |
| | | | Lansing Board of Water and Light, Michigan, Steam and Electric Utility System Revenue Bonds, Series 2008A: | | | | | | |
| | 390 | | 5.000%, 7/01/28 (Pre-refunded 7/01/18) | 7/18 at 100.00 | | AA– (5) | | 411,704 | |
| | 8,250 | | 5.000%, 7/01/32 (Pre-refunded 7/01/18) | 7/18 at 100.00 | | AA– (5) | | 8,709,112 | |
| | 2,160 | | Lowell Area Schools, Kent and Ionia Counties, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/37 (Pre-refunded 5/01/17) – AGM Insured | 5/17 at 100.00 | | Aa1 (5) | | 2,176,675 | |
| | | | Marshall Public Schools, Calhoun County, Michigan, General Obligation Bonds, Series 2007: | | | | | | |
| | 1,500 | | 5.000%, 5/01/30 (Pre-refunded 5/01/17) – SYNCORA GTY Insured | 5/17 at 100.00 | | N/R (5) | | 1,511,580 | |
| | 425 | | 5.000%, 5/01/30 (Pre-refunded 5/01/17) – SYNCORA GTY Insured | 5/17 at 100.00 | | AA– (5) | | 427,537 | |
| | 35 | | Michigan Finance Authority, Revenue Bonds, Trinity Health Credit Group, Refunding Series 2011, 5.000%, 12/01/39 (Pre-refunded 12/01/21) | 12/21 at 100.00 | | N/R (5) | | 40,698 | |
| | 5,505 | | Michigan Finance Authority, Hospital Revenue Bonds, Crittenton Hospital Medical Center, Refunding Series 2012A, 5.000%, 6/01/39 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | N/R (5) | | 6,445,254 | |
| | | | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2010: | | | | | | |
| | 390 | | 5.000%, 10/01/26 (Pre-refunded 10/01/20) | 10/20 at 100.00 | | AAA | | 441,347 | |
| | 475 | | 5.000%, 10/01/30 (Pre-refunded 10/01/20) | 10/20 at 100.00 | | AAA | | 537,539 | |
| | 430 | | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/23 (Pre-refunded 10/01/17) | 10/17 at 100.00 | | N/R (5) | | 440,896 | |
| | 1,775 | | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007, 5.000%, 10/01/24 (Pre-refunded 10/01/17) | 10/17 at 100.00 | | N/R (5) | | 1,819,979 | |
| | | | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, Henry Ford Health System, Refunding Series 2009: | | | | | | |
| | 150 | | 5.000%, 11/15/20 (Pre-refunded 11/15/19) | 11/19 at 100.00 | | A (5) | | 165,332 | |
| | 7,300 | | 5.750%, 11/15/39 (Pre-refunded 11/15/19) | 11/19 at 100.00 | | A (5) | | 8,191,987 | |
| | 4,000 | | Michigan State Hospital Finance Authority, Hospital Revenue Bonds, MidMichigan Obligated Group, Series 2009A, 5.875%, 6/01/39 (Pre-refunded 6/01/19) – AGC Insured | 6/19 at 100.00 | | AA+ (5) | | 4,425,280 | |
| | 3,415 | | Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, St. John's Health System, Series 1998A, 5.000%, 5/15/28 – AMBAC Insured (ETM) | 5/17 at 100.00 | | Aaa | | 3,702,816 | |
| | 1,000 | | Michigan State, General Obligation Bonds, Environmental Program, Series 2009A, 5.500%, 11/01/25 (Pre-refunded 5/01/19) | 5/19 at 100.00 | | Aa1 (5) | | 1,095,660 | |
| | 6,820 | | Oakland Intermediate School District, Oakland County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/36 (Pre-refunded 5/01/17) – AGM Insured | 5/17 at 100.00 | | Aaa | | 6,872,650 | |
| | | | Ottawa County, Michigan, Water Supply System, General Obligation Bonds, Series 2007: | | | | | | |
| | 4,330 | | 5.000%, 8/01/26 – NPFG Insured (Pre-refunded 8/01/17) (UB) | 8/17 at 100.00 | | AAA | | 4,410,322 | |
| | 5,620 | | 5.000%, 8/01/30 – NPFG Insured (Pre-refunded 8/01/17) (UB) | 8/17 at 100.00 | | AAA | | 5,724,251 | |
| | 5,785 | | Parchment School District, Kalamazoo County, Michigan, General Obligation Bonds, Series 2007, 4.750%, 5/01/36 (Pre-refunded 5/01/17) – AGM Insured | 5/17 at 100.00 | | Aa1 (5) | | 5,827,115 | |
| | 750 | | Plainwell Community Schools, Allegan County, Michigan, General Obligation Bonds, School Building & Site, Series 2008, 5.000%, 5/01/28 (Pre-refunded 5/01/18) – AGC Insured | 5/18 at 100.00 | | Aa1 (5) | | 786,758 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed (5) (continued) | | | | | | |
| $ | 2,100 | | Rockford Public Schools, Kent County, Michigan, General Obligation Bonds, School Building & Site Series 2008, 5.000%, 5/01/33 (Pre-refunded 5/01/18) – AGM Insured | 5/18 at 100.00 | | Aa1 (5) | $ | 2,201,661 | |
| | 3,640 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital Obligated Group, Refunding Series 2009W, 6.000%, 8/01/39 (Pre-refunded 8/01/19) | 8/19 at 100.00 | | A1 (5) | | 4,059,874 | |
| | 1,500 | | Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont Hospital, Refunding Series 2009V, 8.250%, 9/01/39 (Pre-refunded 9/01/18) | 9/18 at 100.00 | | Aaa | | 1,663,905 | |
| | 700 | | Saginaw, Michigan, Water Supply System Revenue Bonds, Series 2008, 5.250%, 7/01/22 (Pre-refunded 7/01/18) – NPFG Insured | 7/18 at 100.00 | | AA– (5) | | 741,090 | |
| | 1,535 | | Thornapple Kellogg School District, Barry County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/32 (Pre-refunded 5/01/17) – NPFG Insured | 5/17 at 100.00 | | Aa1 (5) | | 1,546,881 | |
| | 3,600 | | Trenton Public Schools District, Michigan, General Obligation Bonds, School Building & Site Series 2008, 5.000%, 5/01/34 (Pre-refunded 5/01/18) – AGM Insured | 5/18 at 100.00 | | Aa1 (5) | | 3,775,572 | |
| | 2,220 | | Wayne State University, Michigan, General Revenue Bonds, Refunding Series 2008, 5.000%, 11/15/35 (Pre-refunded 11/15/18) – AGM Insured | 11/18 at 100.00 | | Aa3 (5) | | 2,375,999 | |
| | 86,980 | | Total U.S. Guaranteed | | | | | 92,361,517 | |
| | | | Utilities – 12.2% (7.7% of Total Investments) | | | | | | |
| | | | Holland, Michigan, Electric Utility System Revenue Bonds, Series 2014A: | | | | | | |
| | 2,750 | | 5.000%, 7/01/33 | 7/21 at 100.00 | | AA | | 3,081,045 | |
| | 6,020 | | 5.000%, 7/01/39 | 7/21 at 100.00 | | AA | | 6,744,688 | |
| | | | Lansing Board of Water and Light, Michigan, Utility System Revenue Bonds, Tender Option Bond Trust 2016-XF0394: | | | | | | |
| | 1,110 | | 16.386%, 7/01/37 (IF) (4) | 7/21 at 100.00 | | AA– | | 1,591,873 | |
| | 1,700 | | 16.386%, 7/01/37 (IF) (4) | 7/21 at 100.00 | | AA– | | 2,438,004 | |
| | | | Marquette, Michigan, Electric Utility System Revenue Bonds, Refunding Series 2016A: | | | | | | |
| | 1,000 | | 5.000%, 7/01/30 | 7/26 at 100.00 | | A | | 1,144,760 | |
| | 1,000 | | 5.000%, 7/01/31 | 7/26 at 100.00 | | A | | 1,140,850 | |
| | 75 | | 5.000%, 7/01/32 | 7/26 at 100.00 | | A | | 85,110 | |
| | 1,000 | | 5.000%, 7/01/33 | 7/26 at 100.00 | | A | | 1,130,510 | |
| | | | Michigan Public Power Agency, AFEC Project Revenue Bonds, Series 2012A: | | | | | | |
| | 1,900 | | 5.000%, 1/01/27 | 1/22 at 100.00 | | A2 | | 2,058,403 | |
| | 4,530 | | 5.000%, 1/01/43 | 1/22 at 100.00 | | A2 | | 4,757,904 | |
| | | | Michigan Public Power Agency, Revenue Bonds, Combustion Turbine 1 Project, Refunding Series 2011: | | | | | | |
| | 1,760 | | 5.000%, 1/01/24 – AGM Insured | 1/21 at 100.00 | | AA | | 1,945,328 | |
| | 1,990 | | 5.000%, 1/01/25 – AGM Insured | 1/21 at 100.00 | | AA | | 2,187,189 | |
| | 2,180 | | 5.000%, 1/01/26 – AGM Insured | 1/21 at 100.00 | | AA | | 2,385,923 | |
| | 290 | | 5.000%, 1/01/27 – AGM Insured | 1/21 at 100.00 | | AA | | 315,059 | |
| | 3,640 | | Michigan Strategic Fund, Limited Obligation Revenue Refunding Bonds, Detroit Edison Company, Series 1991BB, 7.000%, 5/01/21 – AMBAC Insured | No Opt. Call | | Aa3 | | 4,383,798 | |
| | 2,700 | | Wyandotte, Michigan, Electric Revenue Bonds, Refunding Series 2015A, 5.000%, 10/01/44 – BAM Insured | 10/25 at 100.00 | | AA | | 2,834,460 | |
| | 33,645 | | Total Utilities | | | | | 38,224,904 | |
| NUM | Nuveen Michigan Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer – 14.9% (9.3% of Total Investments) | | | | | | |
| $ | 15 | | Detroit, Michigan, Water Supply System Second Lien Revenue Bonds, Series 2006A, 5.000%, 7/01/34 – AGM Insured | 4/17 at 100.00 | | AA | $ | 15,047 | |
| | | | Grand Rapids, Michigan, Sanitary Sewer System Revenue Bonds, Improvement & Refunding Series 2014: | | | | | | |
| | 1,000 | | 5.000%, 1/01/32 | 1/24 at 100.00 | | Aa1 | | 1,134,750 | |
| | 1,000 | | 5.000%, 1/01/33 | 1/24 at 100.00 | | Aa1 | | 1,130,100 | |
| | 1,000 | | 5.000%, 1/01/34 | 1/24 at 100.00 | | Aa1 | | 1,126,130 | |
| | 1,855 | | 5.000%, 1/01/44 | 1/24 at 100.00 | | Aa1 | | 2,067,082 | |
| | 1,005 | | Great Lakes Water Authority, Michigan, Sewer Disposal System Revenue Bonds, Refunding Second Lien Series 2016C, 5.000%, 7/01/32 | 7/26 at 100.00 | | A– | | 1,112,374 | |
| | 6,245 | | Great Lakes Water Authority, Michigan, Water Supply Revenue Bonds, Refunding Senior Lien Series 2016C, 5.000%, 7/01/32 | 7/26 at 100.00 | | A | | 6,980,411 | |
| | | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & Sewerage Department Sewage Disposal System Local Project, Second Lien Series 2015C: | | | | | | |
| | 4,665 | | 5.000%, 7/01/34 | 7/25 at 100.00 | | A– | | 5,044,451 | |
| | 1,070 | | 5.000%, 7/01/35 | 7/25 at 100.00 | | A– | | 1,153,075 | |
| | | | Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & Sewerage Department Water Supply System Local Project, Refunding Senior Loan Series 2014D-1: | | | | | | |
| | 1,500 | | 5.000%, 7/01/35 – AGM Insured | 7/24 at 100.00 | | AA | | 1,669,125 | |
| | 1,220 | | 5.000%, 7/01/37 – AGM Insured | 7/24 at 100.00 | | AA | | 1,351,675 | |
| | | | Michigan Finance Authority, State Revolving Fund Revenue Bonds, Clean Water Series 2012: | | | | | | |
| | 2,000 | | 5.000%, 10/01/31 | 10/22 at 100.00 | | AAA | | 2,279,520 | |
| | 1,135 | | 5.000%, 10/01/32 | 10/22 at 100.00 | | AAA | | 1,289,803 | |
| | | | Michigan Finance Authority, State Revolving Fund Revenue Bonds, Clean Water Subordinate Refunding Series 2013: | | | | | | |
| | 1,955 | | 5.000%, 10/01/22 | No Opt. Call | | AAA | | 2,304,847 | |
| | 3,200 | | 5.000%, 10/01/25 | 10/22 at 100.00 | | AAA | | 3,734,912 | |
| | 5,000 | | Michigan Finance Authority, State Revolving Fund Revenue Bonds, Clean Water Subordinate Refunding Series 2016B, 5.000%, 10/01/25 | No Opt. Call | | AAA | | 6,065,400 | |
| | 2,000 | | Michigan Finance Authority, State Revolving Fund Revenue Bonds, Clean Water, Refunding Series 2012, 5.000%, 10/01/20 | No Opt. Call | | AAA | | 2,264,840 | |
| | 580 | | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2004, 5.000%, 10/01/19 | 4/17 at 100.00 | | AAA | | 582,169 | |
| | 170 | | Michigan Municipal Bond Authority, Clean Water Revolving Fund Revenue Bonds, Series 2005, 5.000%, 10/01/19 | 4/17 at 100.00 | | AAA | | 171,022 | |
| | 90 | | Michigan Municipal Bond Authority, Drinking Water Revolving Fund Revenue Bonds, Series 2004, 5.000%, 10/01/23 | 4/17 at 100.00 | | AAA | | 90,331 | |
| | | | Michigan Municipal Bond Authority, Water Revolving Fund Revenue Bonds, Series 2007: | | | | | | |
| | 70 | | 5.000%, 10/01/23 | 10/17 at 100.00 | | AAA | | 71,700 | |
| | 225 | | 5.000%, 10/01/24 | 10/17 at 100.00 | | AAA | | 232,549 | |
| | 1,000 | | North Kent Sewer Authority, Michigan, Sewer Revenue Bonds, Refunding Series 2016, 5.000%, 11/01/24 | No Opt. Call | | AA | | 1,179,670 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer (continued) | | | | | | |
| | | | Port Huron, Michigan, Water Supply System Revenue Bonds, Series 2011: | | | | | | |
| $ | 500 | | 5.250%, 10/01/31 | 10/21 at 100.00 | | A– | $ | 536,800 | |
| | 1,500 | | 5.625%, 10/01/40 | 10/21 at 100.00 | | A– | | 1,644,735 | |
| | | | Wyoming, Michigan, Water Supply System Revenue Bonds, Refunding Series 2016: | | | | | | |
| | 210 | | 5.000%, 6/01/26 | No Opt. Call | | Aa2 | | 247,867 | |
| | 505 | | 5.000%, 6/01/27 | 6/26 at 100.00 | | Aa2 | | 589,880 | |
| | 550 | | 5.000%, 6/01/28 | 6/26 at 100.00 | | Aa2 | | 637,802 | |
| | 41,265 | | Total Water and Sewer | | | | | 46,708,067 | |
| $ | 460,130 | | Total Investments (cost $478,942,324) | | | | | 500,008,911 | |
| | | | Floating Rate Obligations – (6.0)% | | | | | (18,890,000 | ) |
| | | | Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs – (55.0)% (6) | | | | | (172,967,770 | ) |
| | | | Other Assets Less Liabilities – 1.9% | | | | | 6,145,890 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | $ | 314,297,031 | |
| (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 redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. |
| (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. Ratings are not covered by the report of independent registered public accounting firm. |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (6) | Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 34.6%. |
| (ETM) | Escrowed to maturity. |
| (IF) | Inverse floating rate investment. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| NUO | | |
| | Nuveen Ohio Quality Municipal Income Fund | |
| | (formerly known as Nuveen Ohio Quality Income Municipal Fund) | |
| | Portfolio of Investments | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | LONG-TERM INVESTMENTS – 149.7% (100.0% of Total Investments) | | | | | | |
| | | | MUNICIPAL BONDS – 149.7% (100.0% of Total Investments) | | | | | | |
| | | | Consumer Staples – 5.1% (3.4% of Total Investments) | | | | | | |
| | | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | | | | | | |
| $ | 15,035 | | 5.125%, 6/01/24 | 6/17 at 100.00 | | B– | $ | 14,240,699 | |
| | 1,085 | | 5.875%, 6/01/47 | 6/17 at 100.00 | | B– | | 1,051,061 | |
| | 16,120 | | Total Consumer Staples | | | | | 15,291,760 | |
| | | | Education and Civic Organizations – 7.7% (5.1% of Total Investments) | | | | | | |
| | 4,375 | | Miami University of Ohio, General Receipts Bonds, Refunding Series 2014, 5.000%, 9/01/33 | 9/24 at 100.00 | | AA | | 4,953,069 | |
| | 2,085 | | Miami University of Ohio, General Receipts Bonds, Refunding Series 2017, 5.000%, 9/01/41 | 9/26 at 100.00 | | AA | | 2,372,250 | |
| | | | Miami University of Ohio, General Receipts Bonds, Series 2011: | | | | | | |
| | 130 | | 5.000%, 9/01/33 | 9/21 at 100.00 | | AA | | 145,304 | |
| | 1,960 | | 5.000%, 9/01/36 | 9/21 at 100.00 | | AA | | 2,190,731 | |
| | | | Miami University of Ohio, General Receipts Bonds, Series 2012: | | | | | | |
| | 480 | | 4.000%, 9/01/32 | 9/22 at 100.00 | | AA | | 503,208 | |
| | 1,000 | | 4.000%, 9/01/33 | 9/22 at 100.00 | | AA | | 1,043,700 | |
| | | | Ohio Higher Educational Facilities Commission, Revenue Bonds, Denison University Project, Series 2012: | | | | | | |
| | 120 | | 5.000%, 11/01/27 | 5/22 at 100.00 | | AA | | 137,473 | |
| | 590 | | 5.000%, 11/01/32 | 5/22 at 100.00 | | AA | | 665,137 | |
| | 5,000 | | Ohio Higher Educational Facilities Commission, Revenue Bonds, University of Dayton, Refunding Series 2013, 5.000%, 12/01/43 | 12/22 at 100.00 | | A+ | | 5,497,250 | |
| | 1,000 | | Ohio University at Athens, General Receipts Bonds, Series 2013, 5.000%, 12/01/39 | 12/22 at 100.00 | | Aa3 | | 1,127,350 | |
| | 1,000 | | Tuscarawas County Economic Development and Finance Alliance, Ohio, Higher Education Facilities Revenue Bonds, Ashland University, Refunding & Improvement Series 2015, 6.000%, 3/01/45 | 3/25 at 100.00 | | N/R | | 1,022,290 | |
| | | | Youngstown State University, Ohio, General Receipts Bonds, Refunding Series 2017: | | | | | | |
| | 1,555 | | 5.000%, 12/15/29 | 12/26 at 100.00 | | A+ | | 1,768,128 | |
| | 1,670 | | 5.000%, 12/15/30 | 12/26 at 100.00 | | A+ | | 1,891,108 | |
| | 20,965 | | Total Education and Civic Organizations | | | | | 23,316,998 | |
| | | | Health Care – 24.7% (16.5% of Total Investments) | | | | | | |
| | 3,000 | | Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Revenue Bonds, Children's Hospital Medical Center, Improvement Series 2013, 5.000%, 11/15/38 | 5/23 at 100.00 | | A1 | | 3,218,010 | |
| | 1,950 | | Allen County, Ohio, Hospital Facilities Revenue Bonds, Catholic Healthcare Partners, Series 2010A, 5.250%, 6/01/38 | 6/20 at 100.00 | | AA– | | 2,107,814 | |
| | 2,335 | | Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.500%, 11/01/40 | 11/20 at 100.00 | | A | | 2,576,813 | |
| | 2,400 | | Fairfield County, Ohio, Hospital Facilities Revenue Bonds, Fairfield Medical Center Project, Series 2013, 5.000%, 6/15/43 | 6/23 at 100.00 | | Baa2 | | 2,511,888 | |
| | 250 | | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Series 2011A, 5.000%, 11/15/41 | 11/21 at 100.00 | | AA+ | | 271,243 | |
| | 4,480 | | Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Tender Option Bond Trust 2016-XL0004, 8.746%, 11/15/41 (IF) (4) | 11/21 at 100.00 | | AA+ | | 5,241,331 | |
| | 3,225 | | Hancock County, Ohio, Hospital Revenue Bonds, Blanchard Valley Regional Health Center, Series 2011A, 6.250%, 12/01/34 | 6/21 at 100.00 | | A2 | | 3,647,765 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Health Care (continued) | | | | | | |
| | | | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2008D: | | | | | | |
| $ | 90 | | 5.000%, 11/15/38 | 11/18 at 100.00 | | AA– | $ | 93,903 | |
| | 40 | | 5.125%, 11/15/40 | 11/18 at 100.00 | | AA– | | 41,804 | |
| | 3,965 | | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 2011A, 6.000%, 11/15/41 | 11/21 at 100.00 | | AA– | | 4,584,055 | |
| | 820 | | Middleburg Heights, Ohio, Hospital Facilities Revenue Bonds, Southwest General Health Center Project, Refunding Series 2011, 5.250%, 8/01/41 | 8/21 at 100.00 | | A2 | | 879,024 | |
| | | | Montgomery County, Ohio, Revenue Bonds, Catholic Health Initiatives, Series 2004A: | | | | | | |
| | 2,880 | | 5.000%, 5/01/30 | 4/17 at 100.00 | | BBB+ | | 2,886,653 | |
| | 2,040 | | 5.000%, 5/01/32 | 4/17 at 100.00 | | BBB+ | | 2,044,488 | |
| | 6,105 | | Muskingum County, Ohio, Hospital Facilities Revenue Bonds, Genesis HealthCare System Obligated Group Project, Series 2013, 5.000%, 2/15/44 | 2/23 at 100.00 | | BB+ | | 6,326,306 | |
| | | | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2008A: | | | | | | |
| | 3,000 | | 5.000%, 1/01/25 | 1/18 at 100.00 | | Aa2 | | 3,090,510 | |
| | 240 | | 5.250%, 1/01/33 | 1/18 at 100.00 | | Aa2 | | 247,351 | |
| | 1,100 | | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Cleveland Clinic Health System Obligated Group, Series 2012A, 5.000%, 1/01/38 | 1/22 at 100.00 | | Aa2 | | 1,233,166 | |
| | | | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010: | | | | | | |
| | 555 | | 5.750%, 11/15/40 – AGM Insured | 5/20 at 100.00 | | AA | | 608,907 | |
| | 1,520 | | 5.250%, 11/15/40 – AGM Insured | 5/20 at 100.00 | | AA | | 1,637,998 | |
| | 8,050 | | Ohio State, Hospital Facility Revenue Bonds, Cleveland Clinic Health System Obligated Group, Refunding Series 2009A, 5.500%, 1/01/39 | 1/19 at 100.00 | | Aa2 | | 8,638,697 | |
| | | | Ohio State, Hospital Facility Revenue Refunding Bonds, Cleveland Clinic Health System Obligated Group, Tender Option Bond Trust 2015-XF0105: | | | | | | |
| | 5,350 | | 18.208%, 1/01/39 (IF) | 1/19 at 100.00 | | AA– | | 6,914,982 | |
| | 875 | | 18.208%, 1/01/43 (IF) | 1/18 at 100.00 | | AA– | | 989,170 | |
| | | | Ohio State, Hospital Revenue Bonds, University Hospitals Health System, Inc., Series 2013A: | | | | | | |
| | 1,000 | | 5.000%, 1/15/28 | 1/23 at 100.00 | | A | | 1,116,630 | |
| | 2,000 | | 5.000%, 1/15/29 | 1/23 at 100.00 | | A | | 2,224,060 | |
| | | | Ross County, Ohio, Hospital Revenue Refunding Bonds, Adena Health System Series 2008: | | | | | | |
| | 1,425 | | 5.750%, 12/01/28 | 12/18 at 100.00 | | A– | | 1,519,449 | |
| | 1,385 | | 5.750%, 12/01/35 | 12/18 at 100.00 | | A– | | 1,469,790 | |
| | 1,000 | | 5.750%, 12/01/35 – AGC Insured | 12/18 at 100.00 | | AA | | 1,061,220 | |
| | | | Wood County, Ohio, Hospital Facilities Refunding and Improvement Revenue Bonds, Wood County Hospital Project, Series 2012: | | | | | | |
| | 2,635 | | 5.000%, 12/01/37 | 12/22 at 100.00 | | Baa3 | | 2,701,007 | |
| | 4,920 | | 5.000%, 12/01/42 | 12/22 at 100.00 | | Baa3 | | 5,028,191 | |
| | 68,635 | | Total Health Care | | | | | 74,912,225 | |
| | | | Housing/Multifamily – 1.8% (1.2% of Total Investments) | | | | | | |
| | 305 | | Franklin County, Ohio, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Agler Project, Series 2002A, 5.550%, 5/20/22 (Alternative Minimum Tax) | 4/17 at 100.00 | | Aaa | | 305,808 | |
| | 1,600 | | Montgomery County, Ohio, GNMA Guaranteed Multifamily Housing Revenue Bonds, Canterbury Court Project, Series 2007, 5.500%, 10/20/42 (Alternative Minimum Tax) | 10/17 at 103.00 | | Aa1 | | 1,660,144 | |
| | 3,390 | | Summit County Port Authority, Ohio, Multifamily Housing Revenue Bonds, Callis Tower Apartments Project, Series 2007, 5.250%, 9/20/47 (Alternative Minimum Tax) | 9/17 at 102.00 | | Aa1 | | 3,477,394 | |
| | 5,295 | | Total Housing/Multifamily | | | | | 5,443,346 | |
| NUO | Nuveen Ohio Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Industrials – 2.0% (1.4% of Total Investments) | | | | | | |
| $ | 1,915 | | Cleveland-Cuyahoga County Port Authority, Ohio, Common Bond Fund Revenue Bonds, Cleveland Christian Home Project, Series 2002C, 5.950%, 5/15/22 | 4/17 at 100.00 | | BBB+ | $ | 1,920,956 | |
| | 3,495 | | Toledo-Lucas County Port Authority, Ohio, Revenue Refunding Bonds, CSX Transportation Inc., Series 1992, 6.450%, 12/15/21 | No Opt. Call | | Baa1 | | 4,202,528 | |
| | 1,600 | | Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) (5) | 7/17 at 102.00 | | N/R | | 16 | |
| | 7,010 | | Total Industrials | | | | | 6,123,500 | |
| | | | Long-Term Care – 1.1% (0.7% of Total Investments) | | | | | | |
| | 895 | | Franklin County, Ohio, Healthcare Facilities Revenue Bonds, Ohio Presbyterian Retirement Services, Improvement Series 2010A, 5.625%, 7/01/26 | 7/20 at 100.00 | | BBB– | | 961,615 | |
| | 2,220 | | Montgomery County, Ohio, Health Care and Multifamily Housing Revenue Bonds, Saint Leonard, Refunding & improvement Series 2010, 6.625%, 4/01/40 | 4/20 at 100.00 | | BBB– | | 2,379,440 | |
| | 3,115 | | Total Long-Term Care | | | | | 3,341,055 | |
| | | | Tax Obligation/General – 16.3% (10.9% of Total Investments) | | | | | | |
| | 1,140 | | Columbia Local School District, Lorain County, Ohio, General Obligation Bonds, School Facilities Improvement Series 2011, 5.000%, 11/01/39 – AGM Insured | 11/21 at 100.00 | | A2 | | 1,228,396 | |
| | | | Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Refunding Series 2006: | | | | | | |
| | 4,310 | | 0.000%, 12/01/27 – AGM Insured | No Opt. Call | | AA+ | | 3,089,322 | |
| | 5,835 | | 0.000%, 12/01/28 – AGM Insured | No Opt. Call | | AA+ | | 4,017,164 | |
| | 2,250 | | Columbus, Ohio, General Obligation Bonds, Refunding Various Purpose Series 2016-3, 5.000%, 2/15/28 | 2/27 at 100.00 | | AAA | | 2,743,965 | |
| | | | Dublin, Ohio, General Obligation Bonds, Limited Tax Various Purpose Series 2015: | | | | | | |
| | 725 | | 5.000%, 12/01/26 | 12/25 at 100.00 | | Aaa | | 884,377 | |
| | 900 | | 5.000%, 12/01/32 | 12/25 at 100.00 | | Aaa | | 1,063,539 | |
| | 1,000 | | 5.000%, 12/01/34 | 12/25 at 100.00 | | Aaa | | 1,171,480 | |
| | 1,730 | | Franklin County, Ohio, General Obligation Bonds, Refunding Series 2014, 5.000%, 6/01/31 | 12/23 at 100.00 | | AAA | | 2,032,594 | |
| | | | Gallia County Local School District, Gallia and Jackson Counties, Ohio, General Obligation Bonds, Refunding School Improvement Series 2014: | | | | | | |
| | 1,260 | | 5.000%, 11/01/30 | 11/24 at 100.00 | | Aa2 | | 1,441,150 | |
| | 1,540 | | 5.000%, 11/01/31 | 11/24 at 100.00 | | Aa2 | | 1,756,493 | |
| | | | Greenville City School District, Drake County, Ohio, General Obligation Bonds, School Improvement Series 2013: | | | | | | |
| | 555 | | 5.250%, 1/01/38 | 1/22 at 100.00 | | AA | | 614,818 | |
| | 1,355 | | 5.250%, 1/01/41 | 1/22 at 100.00 | | AA | | 1,500,405 | |
| | 1,355 | | Grove City, Ohio, General Obligation Bonds, Construction & Improvement Series 2009, 5.125%, 12/01/36 | 12/19 at 100.00 | | Aa1 | | 1,457,817 | |
| | 2,160 | | Kenston Local School District, Geauga County, Ohio, General Obligation Bonds, Series 2011, 0.000%, 12/01/21 | No Opt. Call | | Aa1 | | 1,979,532 | |
| | 4,500 | | Middletown City School District, Butler County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/31 – AGM Insured | No Opt. Call | | A2 | | 5,424,570 | |
| | 1,305 | | Monroe Local School District, Butler County, Ohio, General Obligation Bonds, Series 2006, 5.500%, 12/01/24 – AMBAC Insured | No Opt. Call | | A1 | | 1,532,122 | |
| | 725 | | Napoleon City School District, Henry County, Ohio, General Obligation Bonds, Facilities Construction & Improvement Series 2012, 5.000%, 12/01/36 | 6/22 at 100.00 | | Aa3 | | 794,281 | |
| | 3,000 | | Ohio State, General Obligation Bonds, Highway Capital Improvement, Series 2014R, 5.000%, 5/01/29 | 5/24 at 100.00 | | AAA | | 3,506,940 | |
| | 3,055 | | Ohio State, General Obligation Bonds, Refunding Common Schools Series 2015B, 5.000%, 6/15/32 | 6/22 at 100.00 | | AA+ | | 3,445,154 | |
| | 5,000 | | South Euclid, Ohio, General Obligation Bonds, Real Estate Acquisition and Urban Redevelopment, Series 2012, 5.000%, 6/01/42 | 6/22 at 100.00 | | Aa2 | | 5,454,900 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/General (continued) | | | | | | |
| $ | 2,250 | | South-Western City School District, Franklin and Pickaway Counties, Ohio, General Obligation Bonds, School Facilities Construction & Improvement Series 2012, 5.000%, 12/01/36 | 6/22 at 100.00 | | AA | $ | 2,517,233 | |
| | 1,500 | | Springboro Community City School District, Warren County, Ohio, General Obligation Bonds, Refunding Series 2007, 5.250%, 12/01/32 | No Opt. Call | | AA | | 1,828,065 | |
| | 47,450 | | Total Tax Obligation/General | | | | | 49,484,317 | |
| | | | Tax Obligation/Limited – 31.2% (20.8% of Total Investments) | | | | | | |
| | | | Cleveland, Ohio, Income Tax Revenue Bonds, Bridges & Roadways Improvements, Subordinate Lien Series 2013A-2: | | | | | | |
| | 1,315 | | 5.000%, 10/01/27 | 10/23 at 100.00 | | AA | | 1,533,172 | |
| | 1,520 | | 5.000%, 10/01/30 | 10/23 at 100.00 | | AA | | 1,747,590 | |
| | 1,600 | | 5.000%, 10/01/31 | 10/23 at 100.00 | | AA | | 1,834,336 | |
| | 10,750 | | Cleveland, Ohio, Income Tax Revenue Bonds, Bridges & Roadways Improvements, Subordinate Lien Series 2015A-2, 5.000%, 10/01/37 | 10/23 at 100.00 | | AA | | 12,102,241 | |
| | 3,000 | | Cleveland, Ohio, Income Tax Revenue Bonds, Public Facilities Improvements, Series 2014A-1, 5.000%, 11/15/38 | 11/23 at 100.00 | | AA | | 3,325,710 | |
| | 500 | | Columbus-Franklin County Finance Authority, Ohio, Development Revenue Bonds, Hubbard Avenue Parking Facility Project, Series 2012A, 5.000%, 12/01/36 | 12/19 at 100.00 | | BBB | | 511,070 | |
| | 6,750 | | Cuyahoga County, Ohio, Economic Development Revenue Bonds, Medical Mart-Convention Center Project, Recovery Zone Facility Series 2010F, 5.000%, 12/01/27 | 12/20 at 100.00 | | Aa2 | | 7,573,365 | |
| | | | Cuyahoga County, Ohio, Sales Tax Revenue Bonds, Refunding Various Purpose Series 2014: | | | | | | |
| | 1,815 | | 5.000%, 12/01/32 | 12/24 at 100.00 | | AAA | | 2,102,605 | |
| | 1,415 | | 5.000%, 12/01/33 | 12/24 at 100.00 | | AAA | | 1,631,736 | |
| | 1,000 | | 5.000%, 12/01/34 | 12/24 at 100.00 | | AAA | | 1,148,660 | |
| | 945 | | 5.000%, 12/01/35 | 12/24 at 100.00 | | AAA | | 1,081,949 | |
| | 300 | | Delaware County District Library, Ohio, Library Fund Library Facilities Special Obligation Notes, Series 2009, 5.000%, 12/01/34 | 12/19 at 100.00 | | Aa2 | | 315,351 | |
| | 1,920 | | Dublin, Ohio, Special Obligation Non-Tax Revenue Bonds, Series 2015A, 5.000%, 12/01/44 | 12/25 at 100.00 | | Aa1 | | 2,158,656 | |
| | 10,350 | | Franklin County Convention Facilities Authority, Ohio, Tax and Lease Revenue Anticipation and Refunding Bonds, Columbus City & Franklin County Lessees, Series 2014, 5.000%, 12/01/35 | 12/24 at 100.00 | | Aa1 | | 11,780,472 | |
| | 1,000 | | Greater Cleveland Regional Transit Authority, Ohio, Sales Tax Supported Capital Improvement Bonds, Refunding Series 2015, 5.000%, 12/01/34 | 12/25 at 100.00 | | AAA | | 1,146,360 | |
| | 1,200 | | Greater Cleveland Regional Transit Authority, Ohio, Sales Tax Supported Capital Improvement Bonds, Refunding Series 2016, 5.000%, 12/01/28 | 12/26 at 100.00 | | AAA | | 1,437,036 | |
| | 2,250 | | Hamilton County, Ohio, Sales Tax Bonds, Refunding Series 2016A, 5.000%, 12/01/30 | 12/26 at 100.00 | | AA– | | 2,649,330 | |
| | 5,565 | | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2000B, 0.000%, 12/01/28 – AGM Insured | No Opt. Call | | AA | | 3,765,390 | |
| | 5,000 | | Hamilton County, Ohio, Sales Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 12/01/31 | 12/21 at 100.00 | | A1 | | 5,533,650 | |
| | 20,700 | | JobsOhio Beverage System, Ohio, Statewide Liquor Profits Revenue Bonds, Senior Lien Series 2013A, 5.000%, 1/01/38 | 1/23 at 100.00 | | AA | | 22,890,883 | |
| | 1,000 | | New Albany Community Authority, Ohio, Community Facilities Revenue Refunding Bonds, Series 2012C, 5.000%, 10/01/24 | 10/22 at 100.00 | | Aa3 | | 1,117,360 | |
| | 2,000 | | Pinnacle Community Infrastructure Financing Authority, Grove City, Ohio, Community Facilities Bonds, Series 2015A, 4.250%, 12/01/36 – AGM Insured | 12/25 at 100.00 | | AA | | 2,032,100 | |
| | | | Riversouth Authority, Ohio, Riversouth Area Redevelopment Bonds, Payable from City of Columbus, Ohio Annual Rental Appropriations, Refunding Series 2012A: | | | | | | |
| | 1,645 | | 5.000%, 12/01/23 | 12/22 at 100.00 | | AA+ | | 1,903,610 | |
| | 1,200 | | 5.000%, 12/01/24 | 12/22 at 100.00 | | AA+ | | 1,376,496 | |
| | | | Vermilion Local School District, East and Lorain Counties, Ohio, Certificates of Participation, Series 2012: | | | | | | |
| | 765 | | 5.000%, 12/01/24 | 12/20 at 100.00 | | Aa3 | | 853,572 | |
| | 805 | | 5.000%, 12/01/25 | 12/20 at 100.00 | | Aa3 | | 896,037 | |
| | 86,310 | | Total Tax Obligation/Limited | | | | | 94,448,737 | |
| NUO | Nuveen Ohio Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Transportation – 10.2% (6.8% of Total Investments) | | | | | | |
| | | | Cleveland, Ohio, Airport System Revenue Bonds, Series 2012A: | | | | | | |
| $ | 2,150 | | 5.000%, 1/01/30 | 1/22 at 100.00 | | A– | $ | 2,361,668 | |
| | 1,500 | | 5.000%, 1/01/31 – AGM Insured | 1/22 at 100.00 | | AA | | 1,649,100 | |
| | | | Dayton, Ohio, Airport Revenue Bonds, James M. Cox International Airport, Series 2015B: | | | | | | |
| | 860 | | 5.000%, 12/01/33 – AGM Insured | 12/23 at 100.00 | | AA | | 960,568 | |
| | 500 | | 5.000%, 12/01/34 – AGM Insured | 12/23 at 100.00 | | AA | | 556,535 | |
| | | | Ohio State, Private Activity Bonds, Portsmouth Gateway Group, LLC – Borrower, Portsmouth Bypass Project, Series 2015: | | | | | | |
| | 2,500 | | 5.000%, 12/31/35 – AGM Insured (Alternative Minimum Tax) | 6/25 at 100.00 | | AA | | 2,723,750 | |
| | 3,000 | | 5.000%, 12/31/39 – AGM Insured (Alternative Minimum Tax) | 6/25 at 100.00 | | AA | | 3,248,400 | |
| | 4,250 | | 5.000%, 6/30/53 (Alternative Minimum Tax) | 6/25 at 100.00 | | A– | | 4,480,775 | |
| | 3,550 | | Ohio Turnpike Commission, Revenue Refunding Bonds, Series 1998A, 5.500%, 2/15/18 – FGIC Insured | No Opt. Call | | AA | | 3,709,431 | |
| | 2,050 | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien Series 2013A-1, 5.250%, 2/15/39 | 2/23 at 100.00 | | A+ | | 2,322,876 | |
| | | | Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Projects, Junior Lien, Capital Appreciation Series 2013A-2: | | | | | | |
| | 5,000 | | 0.000%, 2/15/37 | No Opt. Call | | A+ | | 2,221,600 | |
| | 11,260 | | 0.000%, 2/15/38 | No Opt. Call | | A+ | | 4,735,168 | |
| | 5,000 | | 0.000%, 2/15/40 | No Opt. Call | | A+ | | 1,901,350 | |
| | 41,620 | | Total Transportation | | | | | 30,871,221 | |
| | | | U.S. Guaranteed – 25.3% (16.9% of Total Investments) (6) | | | | | | |
| | 4,705 | | American Municipal Power Ohio Inc., Prairie State Energy Campus Project Revenue Bonds, Series 2008A, 5.250%, 2/15/43 (Pre-refunded 2/15/18) | 2/18 at 100.00 | | N/R (6) | | 4,907,268 | |
| | 125 | | Barberton City School District, Summit County, Ohio, General Obligation Bonds, School Improvement Series 2008, 5.250%, 12/01/31 (Pre-refunded 6/01/18) | 6/18 at 100.00 | | AA (6) | | 131,949 | |
| | 1,165 | | Butler County, Ohio, Hospital Facilities Revenue Bonds, UC Health, Series 2010, 5.500%, 11/01/40 (Pre-refunded 11/01/20) | 11/20 at 100.00 | | N/R (6) | | 1,335,626 | |
| | | | Central Ohio Solid Waste Authority, General Obligation Bonds, Refunding & Improvements, Series 2012: | | | | | | |
| | 110 | | 5.000%, 12/01/26 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | N/R (6) | | 129,213 | |
| | 1,140 | | 5.000%, 12/01/26 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | Aaa | | 1,339,112 | |
| | 245 | | 5.000%, 12/01/28 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | N/R (6) | | 287,792 | |
| | 2,545 | | 5.000%, 12/01/28 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | Aaa | | 2,989,510 | |
| | 160 | | 5.000%, 12/01/29 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | N/R (6) | | 187,946 | |
| | 1,605 | | 5.000%, 12/01/29 (Pre-refunded 6/01/22) | 6/22 at 100.00 | | Aaa | | 1,885,329 | |
| | | | Cincinnati, Ohio, General Obligation Bonds, Various Purpose, Refunding Series 2012A: | | | | | | |
| | 1,960 | | 5.000%, 12/01/31 (Pre-refunded 12/01/20) | 12/20 at 100.00 | | AA (6) | | 2,228,324 | |
| | 875 | | 5.000%, 12/01/32 (Pre-refunded 12/01/20) | 12/20 at 100.00 | | AA (6) | | 994,788 | |
| | 1,205 | | Clermont County, Ohio, GNMA Collateralized Mortgage Revenue Bonds, S.E.M. Villa II Project, Series 1994A, 5.950%, 2/20/30 (Pre-refunded 4/24/17) | 4/17 at 100.00 | | N/R (6) | | 1,207,567 | |
| | 2,000 | | Cleveland, Ohio, General Obligation Bonds, Series 2011, 5.000%, 12/01/29 (Pre-refunded12/01/19) | 12/19 at 100.00 | | AA (6) | | 2,211,400 | |
| | | | Franklin County, Ohio, General Obligation Bonds, Various Purpose Series 2007: | | | | | | |
| | 3,355 | | 5.000%, 12/01/27 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | AAA | | 3,463,870 | |
| | 1,840 | | 5.000%, 12/01/28 (Pre-refunded 12/01/17) | 12/17 at 100.00 | | AAA | | 1,899,708 | |
| | | | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children's Hospital Project, Improvement Series 2009: | | | | | | |
| | 250 | | 5.000%, 11/01/34 (Pre-refunded 11/01/19) | 11/19 at 100.00 | | Aa2 (6) | | 275,648 | |
| | 2,615 | | 5.250%, 11/01/40 (Pre-refunded 11/01/19) | 11/19 at 100.00 | | Aa2 (6) | | 2,900,480 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed (6) (continued) | | | | | | |
| $ | 2,470 | | Franklin County, Ohio, Hospital Revenue Bonds, Nationwide Children's Hospital Project, Series 2008A, 5.000%, 11/01/40 (Pre-refunded 11/01/18) | 11/18 at 100.00 | | Aa2 (6) | $ | 2,638,652 | |
| | | | Greater Cleveland Regional Transit Authority, Ohio, Sales Tax Supported Capital Improvement Bonds, Refunding Series 2012: | | | | | | |
| | 1,010 | | 5.250%, 12/01/27 (Pre-refunded 12/01/21) | 12/21 at 100.00 | | AAA | | 1,186,498 | |
| | 1,090 | | 5.250%, 12/01/28 (Pre-refunded 12/01/21) | 12/21 at 100.00 | | AAA | | 1,280,478 | |
| | 760 | | 5.250%, 12/01/30 (Pre-refunded 12/01/21) | 12/21 at 100.00 | | AAA | | 892,810 | |
| | 600 | | 5.000%, 12/01/31 (Pre-refunded 12/01/21) | 12/21 at 100.00 | | AAA | | 697,974 | |
| | 12,750 | | Hamilton City School District, Ohio, General Obligation Bonds, Series 2007, 5.000%, 12/01/34 (Pre-refunded 6/01/17) – AGM Insured | 6/17 at 100.00 | | AA (6) | | 12,894,328 | |
| | 6,580 | | Indian Lake Local School District, Logan and Auglaize Counties, Ohio, School Facilities Improvement and Refunding Bonds, Series 2007, 5.000%, 12/01/34 (Pre-refunded 6/01/17) – NPFG Insured | 6/17 at 100.00 | | AA– (6) | | 6,654,683 | |
| | | | Lake County, Ohio, Hospital Facilities Revenue Bonds, Lake Hospital System, Inc., Refunding Series 2008C: | | | | | | |
| | 1,565 | | 6.000%, 8/15/29 (Pre-refunded 8/15/18) | 8/18 at 100.00 | | N/R (6) | | 1,682,485 | |
| | 300 | | 6.000%, 8/15/29 (Pre-refunded 8/15/18) | 8/18 at 100.00 | | A3 (6) | | 316,464 | |
| | | | Lakewood City School District, Cuyahoga County, Ohio, General Obligation Bonds, Series 2007: | | | | | | |
| | 1,010 | | 5.000%, 12/01/25 (Pre-refunded 12/01/17) – FGIC Insured | 12/17 at 100.00 | | Aa2 (6) | | 1,042,775 | |
| | 775 | | 5.000%, 12/01/30 (Pre-refunded 12/01/17) – FGIC Insured | 12/17 at 100.00 | | Aa2 (6) | | 800,149 | |
| | 2,620 | | Lucas County, Ohio, General Obligation Bonds, Various Purpose Series 2010, 5.000%, 10/01/40 (Pre-refunded 10/01/18) | 10/18 at 100.00 | | AA (6) | | 2,791,086 | |
| | 225 | | Marysville, Ohio, Wastewater Treatment System Revenue Bonds, Series 2007, 5.000%, 12/01/37 (Pre-refunded 12/01/17) – SYNCORA GTY Insured | 12/17 at 100.00 | | A (6) | | 232,250 | |
| | 865 | | Marysville, Ohio, Water System Mortgage Revenue Bonds, Series 2007, 5.000%, 12/01/32 (Pre-refunded 12/01/17) – AMBAC Insured | 12/17 at 100.00 | | Aa3 (6) | | 892,940 | |
| | 1,000 | | Mason City School District, Warren and Butler Counties, Ohio, General Obligation Bonds, School Improvement Series 2007, 5.000%, 12/01/31 (Pre-refunded 6/01/17) | 6/17 at 100.00 | | Aa1 (6) | | 1,011,380 | |
| | 1,500 | | Milford Exempted Village School District, Ohio, General Obligation Bonds, School Improvement Series 2008, 5.250%, 12/01/36 (Pre-refunded 12/01/18) | 12/18 at 100.00 | | Aa3 (6) | | 1,614,180 | |
| | 2,300 | | Northmor Local School District, Morrow County, Ohio, General Obligation Bonds, School Facilities Construction & Improvement Series 2008, 5.000%, 11/01/36 (Pre-refunded 11/01/18) | 11/18 at 100.00 | | Aa2 (6) | | 2,457,435 | |
| | 3,000 | | Ohio State Higher Educational Facility Commission, Higher Education Facility Revenue Bonds, Xavier University 2008C, 5.750%, 5/01/28 (Pre-refunded 11/01/18) | 11/18 at 100.00 | | A3 (6) | | 3,243,210 | |
| | 945 | | Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, Summa Health System Project, Series 2010, 5.750%, 11/15/40 (Pre-refunded 5/15/20) – AGM Insured | 5/20 at 100.00 | | AA (6) | | 1,079,351 | |
| | 950 | | Ohio State, Higher Educational Facility Revenue Bonds, Otterbein College Project, Series 2008A, 5.500%, 12/01/28 (Pre-refunded 12/01/18) | 12/18 at 100.00 | | Baa1 (6) | | 1,025,611 | |
| | 1,220 | | Ohio Water Development Authority, Revenue Bonds, Drinking Water Assistance Fund, State Match, Series 2008, 5.000%, 6/01/28 (Pre-refunded 6/01/18) – AGM Insured | 6/18 at 100.00 | | AAA | | 1,284,013 | |
| | 500 | | Olentangy Local School District, Delaware and Franklin Counties, Ohio, General Obligation Bonds, Series 2008, 5.000%, 12/01/36 (Pre-refunded 6/01/18) | 6/18 at 100.00 | | AAA | | 526,235 | |
| | 700 | | Sylvania City School District, Lucas County, Ohio, General Obligation Bonds, School Improvement Series 1995, 5.250%, 12/01/36 (Pre-refunded 6/01/17) – AGC Insured | 6/17 at 100.00 | | AA (6) | | 708,414 | |
| NUO | Nuveen Ohio Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed (6) (continued) | | | | | | |
| | | | Vandalia Butler City School District, Montgomery County, Ohio, General Obligation Bonds, School Improvement Series 2009: | | | | | | |
| $ | 685 | | 5.125%, 12/01/37 (Pre-refunded 6/01/19) | 6/19 at 100.00 | | N/R (6) | $ | 747,664 | |
| | 315 | | 5.125%, 12/01/37 (Pre-refunded 6/01/19) | 6/19 at 100.00 | | Aa3 (6) | | 343,816 | |
| | 71,635 | | Total U.S. Guaranteed | | | | | 76,420,411 | |
| | | | Utilities – 4.9% (3.3% of Total Investments) | | | | | | |
| | | | American Municipal Power Ohio Inc., Prairie State Energy Campus Project Revenue Bonds, Series 2008A: | | | | | | |
| | 50 | | 5.000%, 2/15/38 – AGC Insured | 2/18 at 100.00 | | AA | | 51,594 | |
| | 295 | | 5.250%, 2/15/43 | 2/18 at 100.00 | | A1 | | 304,989 | |
| | 1,500 | | American Municipal Power Ohio Inc., Prairie State Energy Campus Project Revenue Bonds, Series 2015A, 5.000%, 2/15/42 | 2/24 at 100.00 | | A1 | | 1,647,690 | |
| | 1,430 | | American Municipal Power, Inc., Ohio, Greenup Hydroelectric Project Revenue Bonds, Refunding Series 2016A, 5.000%, 2/15/41 | 2/26 at 100.00 | | A1 | | 1,582,195 | |
| | | | Cleveland, Ohio, Public Power System Revenue Bonds, Series 2008B-2: | | | | | | |
| | 2,000 | | 0.000%, 11/15/28 – NPFG Insured | No Opt. Call | | AA– | | 1,340,120 | |
| | 6,895 | | 0.000%, 11/15/32 – NPFG Insured | No Opt. Call | | AA– | | 3,778,184 | |
| | 2,155 | | 0.000%, 11/15/34 – NPFG Insured | No Opt. Call | | AA– | | 1,076,854 | |
| | 1,500 | | Ohio Air Quality Development Authority, Air Quality Revenue Refunding Bonds, Columbus Southern Power Company Project, Series 2009B, 5.800%, 12/01/38 | 12/19 at 100.00 | | A– | | 1,632,120 | |
| | 2,000 | | Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, FirstEnergy Generation Project, Refunding Series 2006A, 3.750%, 12/01/23 (Mandatory put 12/03/18) | No Opt. Call | | CCC+ | | 700,000 | |
| | 2,025 | | Ohio Air Quality Development Authority, Ohio, Revenue Bonds, Ohio Valley Electric Corporation Project, Series 2009E, 5.625%, 10/01/19 | No Opt. Call | | BBB– | | 2,112,014 | |
| | 950 | | Ohio Municipal Electric Generation Agency, Beneficial Interest Certificates, Belleville Hydroelectric Project – Joint Venture 5, Series 2001, 0.000%, 2/15/29 – NPFG Insured | No Opt. Call | | AA– | | 641,906 | |
| | 20,800 | | Total Utilities | | | | | 14,867,666 | |
| | | | Water and Sewer – 19.4% (13.0% of Total Investments) | | | | | | |
| | 8,150 | | Cincinnati, Ohio, Water System Revenue Bonds, Series 2012A, 5.000%, 12/01/37 | 12/21 at 100.00 | | AAA | | 9,269,077 | |
| | 8,000 | | Cincinnati, Ohio, Water System Revenue Bonds, Series 2016A, 5.000%, 12/01/46 Cleveland, Ohio, Water Revenue Bonds, Refunding Second Lien Series 2012A: | 12/26 at 100.00 | | AAA | | 9,205,680 | |
| | 2,500 | | 5.000%, 1/01/25 | 1/22 at 100.00 | | Aa2 | | 2,845,625 | |
| | 1,975 | | 5.000%, 1/01/26 | 1/22 at 100.00 | | Aa2 | | 2,237,320 | |
| | 2,035 | | Cleveland, Ohio, Water Revenue Bonds, Senior Lien Series 2012X, 5.000%, 1/01/42 | 1/22 at 100.00 | | Aa1 | | 2,277,409 | |
| | 710 | | Cleveland, Ohio, Waterworks First Mortgage Revenue Refunding and Improvement Bonds, Series 1993G, 5.500%, 1/01/21 – NPFG Insured | No Opt. Call | | Aa1 | | 779,140 | |
| | 1,275 | | Hamilton County, Ohio, Sewer System Revenue Bonds, Metropolitan Sewer District of Greater Cincinnati, Refunding Series 2014A, 5.000%, 12/01/31 | 12/24 at 100.00 | | AA+ | | 1,476,080 | |
| | 2,025 | | Ironton, Ohio, Sewer System Improvement Revenue Bonds, Series 2011, 5.250%, 12/01/40 – AGM Insured | 12/20 at 100.00 | | A2 | | 2,164,867 | |
| | | | Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Bonds, Refunding & Improvement Series 2014: | | | | | | |
| | 2,950 | | 5.000%, 11/15/39 | 11/24 at 100.00 | | AA+ | | 3,336,126 | |
| | 1,400 | | 5.000%, 11/15/44 | 11/24 at 100.00 | | AA+ | | 1,578,122 | |
| | 2,000 | | Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Bonds, Series 2013, 5.000%, 11/15/38 | 5/23 at 100.00 | | AA+ | | 2,250,480 | |
| | | | Ohio Water Development Authority, Revenue Bonds, Fresh Water Development, Series 2016B: | | | | | | |
| | 2,220 | | 5.000%, 12/01/33 | 12/26 at 100.00 | | AAA | | 2,617,802 | |
| | 3,105 | | 5.000%, 12/01/34 | 12/26 at 100.00 | | AAA | | 3,644,059 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer (continued) | | | | | | |
| | | | Toledo, Ohio, Sewerage System Revenue Bonds, Refunding Series 2013: | | | | | | |
| $ | 820 | | 5.000%, 11/15/25 | 11/23 at 100.00 | | Aa3 | $ | 946,641 | |
| | 605 | | 5.000%, 11/15/26 | 11/23 at 100.00 | | Aa3 | | 693,953 | |
| | 1,075 | | 5.000%, 11/15/27 | 11/23 at 100.00 | | Aa3 | | 1,226,392 | |
| | 695 | | 5.000%, 11/15/28 | 11/23 at 100.00 | | Aa3 | | 788,818 | |
| | 10,000 | | Toledo, Ohio, Water System Revenue Bonds, Series 2016, 5.000%, 11/15/41 (UB) | 11/26 at 100.00 | | AA– | | 11,411,500 | |
| | 51,540 | | Total Water and Sewer | | | | | 58,749,091 | |
| $ | 440,495 | | Total Investments (cost $429,178,212) | | | | | 453,270,327 | |
| | | | Floating Rate Obligations – (2.6)% | | | | | (8,000,000 | ) |
| | | | Variable Rate Demand Preferred Shares, net of deferred offering costs – (48.8)% (7) | | | | | (147,739,939 | ) |
| | | | Other Assets Less Liabilities – 1.7% | | | | | 5,159,792 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | $ | 302,690,180 | |
| (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. Optional Call Provisions are not covered by the report of independent registered public accounting firm. |
| (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. Ratings are not covered by the report of independent registered public accounting firm. |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (5) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund's records. |
| (6) | 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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (7) | Variable Rate Demand Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 32.6%. |
| (IF) | Inverse floating rate investment. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| NTX | Nuveen Texas Quality Municipal Income Fund | |
| | (formerly known as Nuveen Texas Quality Income Municipal Fund) | |
| | Portfolio of Investments | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | LONG-TERM INVESTMENTS – 150.8% (100.0% of Total Investments) | | | | | | |
| | | | MUNICIPAL BONDS – 150.8% (100.0% of Total Investments) | | | | | | |
| | | | Consumer Discretionary – 4.9% (3.3% of Total Investments) | | | | | | |
| | | | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, First Tier Series 2006A: | | | | | | |
| $ | 1,450 | | 5.250%, 1/01/18 – SYNCORA GTY Insured | 4/17 at 100.00 | | BBB– | $ | 1,453,669 | |
| | 1,000 | | 5.250%, 1/01/24 – SYNCORA GTY Insured | 4/17 at 100.00 | | BBB– | | 1,001,220 | |
| | 1,000 | | 5.000%, 1/01/34 – SYNCORA GTY Insured | 4/17 at 100.00 | | BBB– | | 1,001,480 | |
| | 4,060 | | San Antonio Convention Center Hotel Finance Corporation, Texas, Contract Revenue Empowerment Zone Bonds, Series 2005A, 5.000%, 7/15/39 – AMBAC Insured (Alternative Minimum Tax) | 4/17 at 100.00 | | A3 | | 4,061,054 | |
| | 7,510 | | Total Consumer Discretionary | | | | | 7,517,423 | |
| | | | Education and Civic Organizations – 12.9% (8.5% of Total Investments) | | | | | | |
| | 2,500 | | Board of Regents of the University of Texas, Permanent University Fund Bonds, Refunding Series 2015A, 5.000%, 7/01/28 | 7/24 at 100.00 | | AAA | | 2,955,375 | |
| | 2,000 | | Board of Regents, University of Texas System, Financing System Revenue Bonds, Refunding Series 2012B, 5.000%, 8/15/22 | No Opt. Call | | AAA | | 2,349,740 | |
| | | | Clifton Higher Education Finance Corporation, Texas, Education Revenue Bonds, Uplift Education Charter School, Series 2013A: | | | | | | |
| | 1,000 | | 4.350%, 12/01/42 | 12/22 at 100.00 | | BBB– | | 972,740 | |
| | 1,000 | | 4.400%, 12/01/47 | 12/22 at 100.00 | | BBB– | | 970,400 | |
| | 1,000 | | Danbury Higher Education Authority, Texas, Charter School Revenue Bonds, John H. Wood Jr. Public Charter District, Inspire Academies, Series 2013A, 6.000%, 8/15/28 | 8/23 at 100.00 | | BBB– | | 1,109,310 | |
| | 1,000 | | Hale Center Education Facilities Corporation, Texas, Revenue Bonds, Wayland Baptist University Project, Improvement and Refunding Series 2010, 5.000%, 3/01/35 | 3/21 at 100.00 | | A– | | 1,077,850 | |
| | 1,000 | | Harris County Cultural Education Facilities Finance Corporation, Texas, Medical Facilities Revenue Bonds, Baylor College of Medicine, Refunding Series 2012A, 5.000%, 11/15/26 | 11/22 at 100.00 | | A | | 1,111,820 | |
| | 3,000 | | Harris County Cultural Education Facilities Finance Corporation, Texas, Revenue Refunding Bonds, Young Men's Christian Association of the Greater Houston Area, Series 2013A, 5.000%, 6/01/38 | 6/23 at 100.00 | | Baa3 | | 3,167,880 | |
| | 2,000 | | Laredo Community College District, Webb County, Texas, Combined Fee Revenue Bonds, Series 2010, 5.250%, 8/01/35 – AGM Insured | 8/20 at 100.00 | | AA | | 2,217,380 | |
| | 2,000 | | Lone Star College System, Harris, Montgomery and San Jacinto Counties, Texas, Revenue Financing System Bonds, Series 2013, 5.000%, 2/15/36 | 2/21 at 100.00 | | AA | | 2,203,360 | |
| | 1,240 | | Texas Public Finance Authority, Revenue Bonds, Texas Southern University Financing System, Refunding Series 2016, 5.000%, 5/01/27 – BAM Insured | 5/26 at 100.00 | | AA | | 1,419,763 | |
| | 17,740 | | Total Education and Civic Organizations | | | | | 19,555,618 | |
| | | | Energy – 1.3% (0.9% of Total Investments) | | | | | | |
| | 2,000 | | Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal Revenue Bonds, Citgo Petroleum Corporation Project, Series 1995, 4.875%, 5/01/25 (Alternative Minimum Tax) | 10/22 at 100.00 | | BB | | 2,043,280 | |
| | | | Health Care – 10.0% (6.7% of Total Investments) | | | | | | |
| | 1,000 | | Harris County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Memorial Hermann Healthcare System, Refunding Series 2013A, 5.000%, 12/01/35 | 12/22 at 100.00 | | A+ | | 1,095,580 | |
| | 1,000 | | Harris County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Houston Methodist Hospital System, Series 2015, 5.000%, 12/01/45 | 6/25 at 100.00 | | AA | | 1,089,500 | |
| | 1,350 | | Harrison County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Good Shepherd Health System, Refunding Series 2010, 5.250%, 7/01/28 | 7/20 at 100.00 | | A | | 1,389,231 | |
| | 2,000 | | North Central Texas Health Facilities Development Corporation, Texas, Revenue Bonds, Children's Medical Center Dallas Project, Series 2009, 5.750%, 8/15/39 | 8/19 at 100.00 | | Aa2 | | 2,175,380 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Health Care (continued) | | | | | | |
| $ | 885 | | North Central Texas Health Facilities Development Corporation, Texas, Revenue Bonds, Children's Medical Center Dallas Project, Series 2012, 5.000%, 8/15/32 | 8/22 at 100.00 | | Aa2 | $ | 985,368 | |
| | 515 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Hendrick Medical Center, Refunding Series 2013, 5.125%, 9/01/33 | 9/23 at 100.00 | | A | | 566,794 | |
| | 1,250 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White Healthcare Project, Series 2016A, 5.000%, 11/15/29 | 5/26 at 100.00 | | AA– | | 1,444,325 | |
| | 1,590 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Christus Health, Refunding Series 2008A, 6.500%, 7/01/37 – AGC Insured | 1/19 at 100.00 | | AA | | 1,710,284 | |
| | 2,510 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Texas Health Resources, Series 2007B, 5.000%, 11/15/42 | 11/17 at 100.00 | | AA | | 2,562,861 | |
| | 2,210 | | Tyler Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, East Texas Medical Center Regional Healthcare System, Series 2007A, 5.375%, 11/01/37 | 11/17 at 100.00 | | BBB– | | 2,210,265 | |
| | 14,310 | | Total Health Care | | | | | 15,229,588 | |
| | | | Housing/Multifamily – 2.1% (1.4% of Total Investments) | | | | | | |
| | 3,000 | | New Hope Cultural Education Facilities Finance Corporation, Texas, Student Housing Revenue Bonds, CHF-Collegiate Housing Foundation – College Station I LLC – Texas A&M University Project, Series 2014A, 5.000%, 4/01/46 – AGM Insured | 4/24 at 100.00 | | AA | | 3,208,380 | |
| | | | Long-Term Care – 0.8% (0.5% of Total Investments) | | | | | | |
| | | | Bexar County, Texas, Health Facilities Development Corporation Revenue Bonds, Army Retirement Residence, Series 2007: | | | | | | |
| | 635 | | 5.000%, 7/01/27 | 7/17 at 100.00 | | BBB | | 639,210 | |
| | 490 | | 5.000%, 7/01/37 | 7/17 at 100.00 | | BBB | | 492,220 | |
| | 1,125 | | Total Long-Term Care | | | | | 1,131,430 | |
| | | | Tax Obligation/General – 21.9% (14.5% of Total Investments) | | | | | | |
| | 500 | | Austin Community College District, Texas, General Obligation Bonds, Refunding Limited Tax Series 2016, 5.000%, 8/01/23 | No Opt. Call | | AA+ | | 591,285 | |
| | 400 | | Calallen Independent School District, Nueces County, Texas, General Obligation Bonds, School Building Series 2008, 5.000%, 2/15/38 | 2/18 at 100.00 | | AAA | | 414,000 | |
| | 1,620 | | Cameron County, Texas, General Obligation Bonds, State Highway 550 Project, Series 2012, 5.000%, 2/15/32 – AGM Insured | 2/22 at 100.00 | | AA | | 1,783,296 | |
| | 1,500 | | College Station, Texas, Certificates of Obligation, Series 2012, 5.000%, 2/15/32 | 2/21 at 100.00 | | AA+ | | 1,652,520 | |
| | 1,000 | | El Paso County Hospital District, Texas, General Obligation Bonds, Refunding Series 2013, 5.000%, 8/15/33 | 8/23 at 100.00 | | AA– | | 1,064,650 | |
| | 1,565 | | El Paso County, Texas, Certificates of Obligation, Series 2001, 5.000%, 2/15/21 – AGM Insured | No Opt. Call | | AA | | 1,780,532 | |
| | 3,255 | | Hutto Independent School District, Williamson County, Texas, General Obligation Bonds, Refunding Series 2012A, 0.000%, 8/01/45 | 8/21 at 100.00 | | A | | 652,920 | |
| | 1,360 | | Jacksonville Independent School District, Cherokee County, Texas, General Obligation Bonds, School Building Series 2014, 5.000%, 2/15/39 | 2/24 at 100.00 | | Aaa | | 1,515,312 | |
| | 2,675 | | Laredo Community College District, Webb County, Texas, General Obligation Bonds, Series 2014, 5.000%, 8/01/34 | 8/24 at 100.00 | | AA– | | 2,994,663 | |
| | 40 | | Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2008, 0.000%, 8/15/36 | 8/17 at 33.01 | | AAA | | 13,099 | |
| | 1,350 | | Lubbock Independent School District, Lubbock County, Texas, General Obligation Bonds, School Building Series 2013A, 5.000%, 2/15/43 | 2/23 at 100.00 | | AAA | | 1,509,719 | |
| | 1,750 | | Martin County Hospital District, Texas, Combination Limited Tax and Revenue Bonds, Series 2011A, 7.250%, 4/01/36 | 4/21 at 100.00 | | BBB | | 1,901,708 | |
| | | | McCamey County Hospital District, Texas, General Obligation Bonds, Series 2013: | | | | | | |
| | 1,000 | | 5.750%, 12/01/33 | 12/25 at 100.00 | | Ba2 | | 1,080,560 | |
| | 1,000 | | 6.125%, 12/01/38 | 12/25 at 100.00 | | Ba2 | | 1,087,410 | |
| NTX | Nuveen Texas Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/General (continued) | | | | | | |
| $ | 1,425 | | Port of Houston Authority, Harris County, Texas, General Obligation Bonds, Series 2010E, 0.000%, 10/01/35 | No Opt. Call | | AAA | $ | 729,372 | |
| | 4,000 | | Prosper Independent School District, Collin County, Texas, General Obligation Bonds, Refunding Series 2015, 5.000%, 2/15/40 | 2/25 at 100.00 | | AAA | | 4,523,598 | |
| | 205 | | Reagan Hospital District of Reagan County, Texas, Limited Tax Revenue Bonds, Series 2014A, 5.125%, 2/01/39 | 2/24 at 100.00 | | Ba2 | | 209,848 | |
| | 2,000 | | Texas State, General Obligation Bonds, Transportation Commission Highway Improvement Series 2012A, 5.000%, 4/01/42 | 4/22 at 100.00 | | AAA | | 2,246,760 | |
| | 2,000 | | Texas State, General Obligation Bonds, Transportation Commission Highway Improvement, Series 2014, 5.000%, 4/01/44 | 4/24 at 100.00 | | AAA | | 2,253,760 | |
| | 2,000 | | Texas State, General Obligation Bonds, Transportation Commission Mobility Fund, Refunding Series 2014, 5.000%, 10/01/34 | 4/24 at 100.00 | | AAA | | 2,281,180 | |
| | | | West Texas Independent School District, McLennan and Hill Counties, General Obligation Refunding Bonds, Series 1998: | | | | | | |
| | 45 | | 0.000%, 8/15/22 | 5/17 at 100.00 | | AAA | | 33,530 | |
| | 45 | | 0.000%, 8/15/24 | 5/17 at 100.00 | | AAA | | 30,063 | |
| | 9,000 | | Wylie Independent School District, Collin County, Texas, General Obligation Bonds, Capital Appreciation Series 2015, 0.000%, 8/15/45 | 8/25 at 44.15 | | Aaa | | 2,895,750 | |
| | 39,735 | | Total Tax Obligation/General | | | | | 33,245,535 | |
| | | | Tax Obligation/Limited – 26.9% (17.8% of Total Investments) | | | | | | |
| | | | Bexar County, Texas, Venue Project Revenue Bonds, Refunding Combined Venue Tax Series 2015: | | | | | | |
| | 1,060 | | 5.000%, 8/15/34 – AGM Insured | 8/24 at 100.00 | | AA | | 1,179,822 | |
| | 1,160 | | 5.000%, 8/15/35 – AGM Insured | 8/24 at 100.00 | | AA | | 1,286,266 | |
| | 1,000 | | Bexar County, Texas, Venue Project Revenue Bonds, Refunding Series 2010, 5.250%, 8/15/38 – AGM Insured | 8/19 at 100.00 | | AA | | 1,078,960 | |
| | 1,175 | | Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Refunding Senior Lien Series 2014A, 5.000%, 12/01/36 | 12/24 at 100.00 | | AA+ | | 1,333,919 | |
| | 1,680 | | Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Refunding Series 2016A, 5.000%, 12/01/48 | 12/25 at 100.00 | | AA+ | | 1,898,350 | |
| | 500 | | Flower Mound, Texas, Special Assessment Revenue Bonds, River Walk Public Improvement District 1, Series 2014, 6.500%, 9/01/36 | 9/19 at 103.00 | | N/R | | 512,910 | |
| | 2,500 | | Harris County Metropolitan Transit Authority, Texas, Sales and Use Tax Revenue Bonds, Contractual Obligations Series 2015B, 5.000%, 11/01/25 | No Opt. Call | | AA+ | | 3,007,275 | |
| | 1,390 | | Harris County Metropolitan Transit Authority, Texas, Sales and Use Tax Revenue Bonds, Refunding Series 2011A, 5.000%, 11/01/41 | 11/21 at 100.00 | | AA+ | | 1,554,409 | |
| | | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H: | | | | | | |
| | 450 | | 0.000%, 11/15/24 – NPFG Insured | No Opt. Call | | AA– | | 336,371 | |
| | 210 | | 0.000%, 11/15/32 – NPFG Insured | 11/31 at 94.05 | | AA– | | 107,841 | |
| | 260 | | 0.000%, 11/15/33 | 11/31 at 88.44 | | AA– | | 124,288 | |
| | 2,045 | | 0.000%, 11/15/34 – NPFG Insured | 11/31 at 83.17 | | AA– | | 911,395 | |
| | 1,130 | | 0.000%, 11/15/36 – NPFG Insured | 11/31 at 73.51 | | AA– | | 439,423 | |
| | 4,370 | | 0.000%, 11/15/38 – NPFG Insured | 11/31 at 64.91 | | AA– | | 1,496,201 | |
| | 2,260 | | 0.000%, 11/15/39 – NPFG Insured | 11/31 at 60.98 | | AA– | | 725,822 | |
| | 400 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Second Lien Series 2014C, 5.000%, 11/15/34 | 11/24 at 100.00 | | A3 | | 443,660 | |
| | 1,000 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Senior Lien Series 2014A, 5.000%, 11/15/28 | 11/24 at 100.00 | | A2 | | 1,155,960 | |
| | 3,440 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Senior Lien Series 2001G, 0.000%, 11/15/41 – NPFG Insured | 11/31 at 53.78 | | AA– | | 978,611 | |
| | 1,000 | | Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, 0.000%, 11/15/33 – NPFG Insured | 11/24 at 59.10 | | AA– | | 427,100 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited (continued) | | | | | | |
| $ | 210 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Facilities Department, Refunding Series 2011B, 5.000%, 9/01/30 | 4/17 at 100.00 | | A2 | $ | 210,647 | |
| | 1,015 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Facilities Department, Refunding Series 2014, 5.000%, 9/01/34 | 9/24 at 100.00 | | A2 | | 1,129,634 | |
| | 1,470 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/32 – AMBAC Insured | No Opt. Call | | A2 | | 782,775 | |
| | 250 | | Little Elm. Texas, Valencia Public Improvement District Phase I Special Assessment Revenue Bonds, Series 2014, 7.150%, 9/01/37 | 3/18 at 103.00 | | N/R | | 254,293 | |
| | 3,000 | | North Texas Tollway Authority, Special Projects System Revenue Bonds, Current Interest Series 2011D, 5.000%, 9/01/31 | 9/21 at 100.00 | | AA+ | | 3,364,110 | |
| | 2,000 | | North Texas Tollway Authority, Special Projects System Revenue Bonds, Series 2011A, 5.500%, 9/01/41 | 9/21 at 100.00 | | AA+ | | 2,285,480 | |
| | 10,000 | | Texas State Transportation Commission, Highway Fund Revenue Bonds, Series 2016A, 5.000%, 10/01/30 (UB) (4) | 10/26 at 100.00 | | Aaa | | 11,876,100 | |
| | 1,735 | | Via Metropolitan Transit Advanced Transportation District, Texas, Sales Tax Revenue Bonds, Refunding & Improvement Series 2014, 5.000%, 8/01/38 | 8/24 at 100.00 | | AAA | | 1,966,865 | |
| | 46,710 | | Total Tax Obligation/Limited | | | | | 40,868,487 | |
| | | | Transportation – 20.1% (13.3% of Total Investments) | | | | | | |
| | 3,000 | | Austin, Texas, Airport System Revenue Bonds, Series 2015, 5.000%, 11/15/39 (Alternative Minimum Tax) | 11/24 at 100.00 | | A1 | | 3,280,530 | |
| | 665 | | Central Texas Regional Mobility Authority, Revenue Bonds, Refunding Subordinate Lien Series 2013, 5.000%, 1/01/42 | 1/23 at 100.00 | | BBB | | 703,204 | |
| | | | Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2010: | | | | | | |
| | 2,945 | | 0.000%, 1/01/36 | No Opt. Call | | BBB+ | | 1,278,748 | |
| | 2,205 | | 0.000%, 1/01/37 | No Opt. Call | | BBB+ | | 917,765 | |
| | 2,160 | | 0.000%, 1/01/38 | No Opt. Call | | BBB+ | | 863,719 | |
| | 1,000 | | 0.000%, 1/01/40 | No Opt. Call | | BBB+ | | 361,340 | |
| | 1,000 | | Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Refunding Series 2010A, 5.000%, 11/01/42 | 11/20 at 100.00 | | A+ | | 1,100,020 | |
| | 1,165 | | Dallas-Fort Worth International Airport, Texas, Joint Revenue Bonds, Refunding Series 2012B, 5.000%, 11/01/35 | 11/20 at 100.00 | | A+ | | 1,289,795 | |
| | 1,670 | | Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, First Tier Series 2013A, 5.125%, 10/01/43 | 10/23 at 100.00 | | BBB+ | | 1,814,121 | |
| | 1,165 | | Harris County, Texas, Toll Road Revenue Bonds, Refunding Senior Lien Series 2012C, 5.000%, 8/15/31 | 8/22 at 100.00 | | AA | | 1,319,234 | |
| | 5,150 | | Harris County, Texas, Toll Road Revenue Bonds, Refunding Senior Lien Series 2016A, 5.000%, 8/15/41 | 8/26 at 100.00 | | Aa2 | | 5,870,121 | |
| | 2,000 | | Houston, Texas, Airport System Revenue Bonds, Refunding Subordinate Lien Series 2012A, 5.000%, 7/01/31 (Alternative Minimum Tax) | 7/22 at 100.00 | | A+ | | 2,164,160 | |
| | 1,750 | | Love Field Airport Modernization Corporation, Texas, General Airport Revenue Bonds Series 2015, 5.000%, 11/01/35 (Alternative Minimum Tax) | 11/25 at 100.00 | | A1 | | 1,943,480 | |
| | 3,000 | | Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 | 11/20 at 100.00 | | Baa1 | | 3,247,650 | |
| | | | North Texas Tollway Authority, System Revenue Bonds, First Tier Series 2009A: | | | | | | |
| | 20 | | 6.100%, 1/01/28 | 1/19 at 100.00 | | A1 | | 21,779 | |
| | 375 | | 6.250%, 1/01/39 | 1/19 at 100.00 | | A1 | | 405,514 | |
| | 50 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2008A, 5.750%, 1/01/40 | 1/18 at 100.00 | | A1 | | 51,693 | |
| | | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2008B: | | | | | | |
| | 35 | | 5.750%, 1/01/40 | 1/18 at 100.00 | | AA– | | 36,230 | |
| | 40 | | 5.750%, 1/01/40 | 1/18 at 100.00 | | A1 | | 41,354 | |
| NTX | Nuveen Texas Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Tax Obligation/Limited (continued) | | | | | | |
| $ | 2,500 | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2008D, 0.000%, 1/01/36 – AGC Insured | No Opt. Call | | AA | $ | 1,149,800 | |
| | 2,500 | | San Antonio, Texas, Airport System Revenue Bonds, Refunding Series 2012, 5.000%, 7/01/27 (Alternative Minimum Tax) | 7/22 at 100.00 | | A+ | | 2,759,300 | |
| | 34,395 | | Total Transportation | | | | | 30,619,557 | |
| | | | U.S. Guaranteed – 19.6% (13.0% of Total Investments) (5) | | | | | | |
| | | | Bexar County, Texas, Health Facilities Development Corporation Revenue Bonds, Army Retirement Residence, Series 2007: | | | | | | |
| | 130 | | 5.000%, 7/01/27 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | N/R (5) | | 131,944 | |
| | 110 | | 5.000%, 7/01/37 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | N/R (5) | | 111,645 | |
| | 2,500 | | Bexar Metropolitan Water District, Texas, Waterworks System Revenue Bonds, Refunding Series 2010, 5.875%, 5/01/40 (Pre-refunded 5/01/20) | 5/20 at 100.00 | | AA (5) | | 2,863,000 | |
| | 185 | | El Paso County, Texas, Certificates of Obligation, Series 2001, 5.000%, 2/15/21 – AGM Insured (ETM) | No Opt. Call | | AA (5) | | 211,170 | |
| | 1,000 | | El Paso, Texas, Water and Sewer Revenue Bonds, Refunding Series 2008C, 5.375%, 3/01/29 (Pre-refunded 3/01/18) | 3/18 at 100.00 | | AA+ (5) | | 1,045,960 | |
| | 8,500 | | Grand Prairie Independent School District, Dallas County, Texas, General Obligation Bonds, Capital Appreciation Refunding Series 2009, 0.000%, 8/15/39 (Pre-refunded 8/15/18) | 8/18 at 22.64 | | AA (5) | | 1,893,205 | |
| | 4,000 | | Laredo, Webb County, Texas, Waterworks and Sewer System Revenue Bonds, Series 2010, 5.250%, 3/01/40 (Pre-refunded 3/01/20) | 3/20 at 100.00 | | AA– (5) | | 4,477,278 | |
| | 960 | | Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation Bonds, Series 2008, 0.000%, 8/15/36 (Pre-refunded 8/15/17) | 8/17 at 33.01 | | N/R (5) | | 315,504 | |
| | 365 | | Lone Star College System, Harris and Montgomery Counties, Texas, General Obligation Bonds, Series 2009, 5.000%, 8/15/34 (Pre-refunded 8/15/19) | 8/19 at 100.00 | | AAA | | 400,000 | |
| | 25 | | Lower Colorado River Authority, Texas, Revenue Bonds, Refunding Series 2012B, 5.000%, 5/15/29 (Pre-refunded 5/15/22) | 5/22 at 100.00 | | N/R (5) | | 29,271 | |
| | 1,500 | | Montgomery County, Texas, General Obligation Bonds, Refunding Series 2008B, 5.250%, 3/01/32 (Pre-refunded 3/01/19) | 3/19 at 100.00 | | Aaa | | 1,625,625 | |
| | 1,000 | | North Central Texas Health Facilities Development Corporation, Hospital Revenue Bonds, Presbyterian Healthcare System, Series 1996A, 5.750%, 6/01/26 – NPFG Insured (ETM) | No Opt. Call | | Aaa | | 1,189,970 | |
| | | | North Texas Tollway Authority, System Revenue Bonds, First Tier Series 2009A: | | | | | | |
| | 80 | | 6.100%, 1/01/28 (Pre-refunded 1/01/19) | 1/19 at 100.00 | | N/R (5) | | 87,426 | |
| | 1,625 | | 6.250%, 1/01/39 (Pre-refunded 1/01/19) | 1/19 at 100.00 | | N/R (5) | | 1,780,269 | |
| | | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2008A: | | | | | | |
| | 195 | | 5.750%, 1/01/40 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | N/R (5) | | 203,196 | |
| | 150 | | 5.750%, 1/01/40 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | A1 (5) | | 156,305 | |
| | | | North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier, Series 2008B: | | | | | | |
| | 285 | | 5.750%, 1/01/40 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | A1 (5) | | 296,979 | |
| | 190 | | 5.750%, 1/01/40 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | AA– (5) | | 197,986 | |
| | 950 | | North Texas Tollway Authority, System Revenue Bonds, Refunding Second Tier, Series 2008F, 5.750%, 1/01/38 (Pre-refunded 1/01/18) | 1/18 at 100.00 | | A2 (5) | | 989,682 | |
| | 2,000 | | Plano Independent School District, Collin County, Texas, General Obligation Bonds, Series 2008A, 5.250%, 2/15/34 (Pre-refunded 2/15/18) | 2/18 at 100.00 | | Aaa | | 2,085,980 | |
| | 2,500 | | Retama Development Corporation, Texas, Special Facilities Revenue Bonds, Retama Park Racetrack, Series 1993, 8.750%, 12/15/18 (Pre-refunded 12/15/17) | 12/17 at 100.00 | | Aaa | | 2,658,450 | |
| | | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Scott & White Healthcare Project, Series 2010: | | | | | | |
| | 95 | | 5.250%, 8/15/40 (Pre-refunded 8/15/20) | 8/20 at 100.00 | | N/R (5) | | 107,809 | |
| | 1,155 | | 5.250%, 8/15/40 (Pre-refunded 8/15/20) | 8/20 at 100.00 | | AA– (5) | | 1,310,729 | |
| | 410 | | Tarrant County Cultural Education Facilities Finance Corporation, Texas, Revenue Bonds, Christus Health, Refunding Series 2008A, 6.500%, 7/01/37 (Pre-refunded 1/01/19) – AGC Insured | 1/19 at 100.00 | | AA (5) | | 450,565 | |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | U.S. Guaranteed (5) (continued) | | | | | | |
| | | | Texas State, General Obligation Bonds, Transportation Commission Mobility Fund, Series 2008: | | | | | | |
| $ | 90 | | 5.000%, 4/01/30 (Pre-refunded 4/01/18) | 4/18 at 100.00 | | N/R (5) | $ | 94,100 | |
| | 910 | | 5.000%, 4/01/30 (Pre-refunded 4/01/18) | 4/18 at 100.00 | | AAA | | 951,451 | |
| | 700 | | Tyler Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Mother Frances Hospital Regional Healthcare Center, Series 2007B, 5.000%, 7/01/37 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | BBB+ (5) | | 710,444 | |
| | 2,250 | | Tyler Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Mother Frances Hospital Regional Healthcare Center, Series 2007, 5.000%, 7/01/33 (Pre-refunded 7/01/17) | 7/17 at 100.00 | | BBB+ (5) | | 2,283,570 | |
| | 1,000 | | Uptown Development Authority, Houston, Texas, Tax Increment Revenue Bonds, Infrastructure Improvement Facilities, Series 2009, 5.500%, 9/01/29 (Pre-refunded 9/01/19) | 9/19 at 100.00 | | BBB (5) | | 1,108,460 | |
| | 34,860 | | Total U.S. Guaranteed | | | | | 29,767,973 | |
| | | | Utilities – 17.2% (11.4% of Total Investments) | | | | | | |
| | 2,000 | | Austin, Texas, Electric Utility System Revenue Bonds, Refunding Series 2012A, 5.000%, 11/15/40 | 11/22 at 100.00 | | AA | | 2,200,800 | |
| | 3,000 | | Austin, Texas, Electric Utility System Revenue Bonds, Refunding Series 2015A, 5.000%, 11/15/38 | 11/25 at 100.00 | | AA | | 3,397,920 | |
| | 2,560 | | Brazos River Authority, Texas, Pollution Control Revenue Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) (6) | 5/17 at 100.00 | | N/R | | 26 | |
| | 2,000 | | Brownsville, Texas, Utility System Revenue Bonds, Refunding Series 2015, 5.000%, 9/01/31 | 9/25 at 100.00 | | A+ | | 2,249,380 | |
| | 2,000 | | Bryan, Brazos County, Texas, Electric System Revenue Bonds, Series 2009, 5.000%, 7/01/34 | 7/17 at 100.00 | | A+ | | 2,024,100 | |
| | 3,000 | | Lower Colorado River Authority, Texas, Revenue Bonds, Refunding Series 2010A, 5.000%, 5/15/40 | 5/20 at 100.00 | | A | | 3,269,010 | |
| | 1,150 | | Lower Colorado River Authority, Texas, Revenue Bonds, Refunding Series 2012A, 5.000%, 5/15/36 | 5/22 at 100.00 | | A | | 1,268,370 | |
| | 1,975 | | Lower Colorado River Authority, Texas, Revenue Bonds, Refunding Series 2012B, 5.000%, 5/15/29 | 5/22 at 100.00 | | A | | 2,214,291 | |
| | 1,500 | | Matagorda County Navigation District Number One, Texas, Pollution Control Revenue Refunding Bonds, Central Power and Light Company Project, Series 2009A, 6.300%, 11/01/29 | 7/19 at 102.00 | | A– | | 1,640,880 | |
| | 1,000 | | Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Bonds, Refunding Series 2012, 5.000%, 10/01/20 | No Opt. Call | | BBB+ | | 1,111,340 | |
| | | | Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, Senior Lien Series 2008D: | | | | | | |
| | 270 | | 5.625%, 12/15/17 | No Opt. Call | | BBB+ | | 278,589 | |
| | 3,000 | | 6.250%, 12/15/26 | No Opt. Call | | BBB+ | | 3,558,540 | |
| | 1,000 | | Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, Series 2006A, 5.250%, 12/15/20 | No Opt. Call | | BBB+ | | 1,108,180 | |
| | | | Texas Municipal Power Agency, Revenue Bonds, Refunding Transmission Series 2010: | | | | | | |
| | 640 | | 5.000%, 9/01/34 | 9/20 at 100.00 | | A+ | | 703,213 | |
| | 1,000 | | 5.000%, 9/01/40 | 9/20 at 100.00 | | A+ | | 1,098,770 | |
| | 26,095 | | Total Utilities | | | | | 26,123,409 | |
| | | | Water and Sewer – 13.1% (8.7% of Total Investments) | | | | | | |
| | 1,450 | | Austin, Texas, Water and Wastewater System Revenue Bonds, Refunding Series 2016A, 5.000%, 11/15/41 | 11/26 at 100.00 | | AA | | 1,661,149 | |
| | 1,575 | | Bell County Water Control Improvement District 1, Texas, Water Revenue Bonds, Series 2014, 5.000%, 7/10/38 – BAM Insured | 7/23 at 100.00 | | AA | | 1,727,555 | |
| | 2,500 | | Canadian River Municipal Water Authority, Texas, Contract Revenue Bonds, Conjunctive Use Groundwater Supply Project, Subordinate Lien Series 2011, 5.000%, 2/15/31 | 2/21 at 100.00 | | AA | | 2,754,200 | |
| | 2,000 | | Corpus Christi, Texas, Utility System Revenue Bonds, Improvement Junior Lien Series 2013, 5.000%, 7/15/43 | 7/23 at 100.00 | | A+ | | 2,197,740 | |
| | 2,000 | | Houston, Texas, First Lien Combined Utility System Revenue Bonds, Refunding Series 2012D, 5.000%, 11/15/42 | 11/22 at 100.00 | | AA | | 2,240,860 | |
| | 710 | | North Fort Bend Water Authority, Texas, Water System Revenue Bonds, Series 2011, 5.000%, 12/15/36 – AGM Insured | 12/21 at 100.00 | | AA | | 772,317 | |
| | 3,860 | | North Harris County Regional Water Authority, Texas, Water Revenue Bonds, Refunding Senior Lien Series 2013, 5.000%, 12/15/33 | 12/22 at 100.00 | | AA– | | 4,322,310 | |
| NTX | Nuveen Texas Quality Municipal Income Fund | |
| | Portfolio of Investments (continued) | February 28, 2017 |
| | Principal | | | Optional Call | | | | | |
| | Amount (000) | | Description (1) | Provisions (2) | | Ratings (3) | | Value | |
| | | | Water and Sewer (continued) | | | | | | |
| $ | 1,000 | | Nueces River Authority, Texas, Water Supply Revenue Bonds, Corpus Christi Lake Texana Project, Refunding Series 2015, 5.000%, 7/15/26 | 7/25 at 100.00 | | AA– | $ | 1,194,380 | |
| | 2,640 | | San Antonio, Texas, Water System Revenue Bonds, Refunding Junior Lien Series 2015B, 5.000%, 5/15/34 | 5/25 at 100.00 | | AA | | 3,009,389 | |
| | 17,735 | | Total Water and Sewer | | | | | 19,879,900 | |
| $ | 245,215 | | Total Investments (cost $215,552,974) | | | | | 229,190,580 | |
| | | | Floating Rate Obligations – (5.3)% | | | | | (8,000,000 | ) |
| | | | Institutional MuniFund Term Preferred Shares, net of deferred offering costs – (47.2)% (7) | | | | | (71,717,046 | ) |
| | | | Other Assets Less Liabilities – 1.7% | | | | | 2,470,514 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | | $ | 151,944,048 | |
| (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. Optional Call Provisions are not covered by the report of independent registered public accounting firm. |
| (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. Ratings are not covered by the report of independent registered public accounting firm. |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. |
| (6) | As of, or subsequent to, the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has ceased accruing additional income on the Fund's records. |
| (7) | Institutional MuniFund Term Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 31.3%. |
| (ETM) | Escrowed to maturity. |
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| Statement of | | |
| | Assets and Liabilities | February 28, 2017 |
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Assets | | | | | | | | | | | | | |
| Long-term investments, at value (cost $240,588,142, $478,942,324, $429,178,212 and $215,552,974, respectively) | | $ | 254,189,401 | | $ | 500,008,911 | | $ | 453,270,327 | | $ | 229,190,580 | |
| Cash | | | 909,327 | | | 1,443,331 | | | 258,346 | | | 734,390 | |
| Receivable for: | | | | | | | | | | | | | |
| Interest | | | 2,425,145 | | | 6,278,927 | | | 5,120,557 | | | 2,422,683 | |
| Investments sold | | | 1,433,062 | | | 1,259,319 | | | 1,130,350 | | | — | |
| Other assets | | | 989 | | | 43,837 | | | 18,970 | | | 2,002 | |
| Total assets | | | 258,957,924 | | | 509,034,325 | | | 459,798,550 | | | 232,349,655 | |
| Liabilities | | | | | | | | | | | | | |
| Floating rate obligations | | | 2,755,000 | | | 18,890,000 | | | 8,000,000 | | | 8,000,000 | |
| Payable for: | | | | | | | | | | | | | |
| Dividends | | | 638,011 | | | 1,090,861 | | | 977,609 | | | 518,018 | |
| Interest | | | 106,903 | | | 209,449 | | | — | | | — | |
| Investments purchased | | | 1,768,255 | | | 1,166,063 | | | — | | | — | |
| Offering costs | | | 84,619 | | | 55,392 | | | 70,478 | | | — | |
| Institutional MuniFund Term Preferred ("iMTP") Shares, net of deferred offering costs (liquidation preference $—, $—, $— and $72,000,000, respectively) | | | — | | | — | | | — | | | 71,717,046 | |
| Variable Rate MuniFund Term Preferred ("VMTP") Shares, net of deferred offering costs (liquidation preference $88,300,000, $173,000,000, $—, and $—, respectively) | | | 88,279,545 | | | 172,967,770 | | | — | | | — | |
| Variable Rate Demand Preferred ("VRDP") Shares, net of deferred offering costs (liquidation preference $—, $—, $148,000,000, and $—, respectively) | | | — | | | — | | | 147,739,939 | | | — | |
| Accrued expenses: | | | | | | | | | | | | | |
| Management fees | | | 122,902 | | | 225,264 | | | 219,776 | | | 107,533 | |
| Trustees fees | | | 2,783 | | | 48,281 | | | 18,938 | | | 2,474 | |
| Other | | | 59,168 | | | 84,214 | | | 81,630 | | | 60,536 | |
| Total liabilities | | | 93,817,186 | | | 194,737,294 | | | 157,108,370 | | | 80,405,607 | |
| Net assets applicable to common shares | | $ | 165,140,738 | | $ | 314,297,031 | | $ | 302,690,180 | | $ | 151,944,048 | |
| Common shares outstanding | | | 11,583,429 | | | 20,810,887 | | | 18,521,955 | | | 10,027,210 | |
| Net asset value ("NAV") per common share outstanding | | $ | 14.26 | | $ | 15.10 | | $ | 16.34 | | $ | 15.15 | |
| Net assets applicable to common shares consist of: | | | | | | | | | | | | | |
| Common shares, $0.01 par value per share | | $ | 115,834 | | $ | 208,109 | | $ | 185,220 | | $ | 100,272 | |
| Paid-in surplus | | | 156,318,517 | | | 294,958,185 | | | 281,001,570 | | | 141,349,823 | |
| Undistributed (Over-distribution of) net investment income | | | 303,081 | | | (304,164 | ) | | 254,772 | | | 390,167 | |
| Accumulated net realized gain (loss) | | | (5,197,953 | ) | | (1,631,686 | ) | | (2,843,497 | ) | | (3,533,820 | ) |
| Net unrealized appreciation (depreciation) | | | 13,601,259 | | | 21,066,587 | | | 24,092,115 | | | 13,637,606 | |
| Net assets applicable to common shares | | $ | 165,140,738 | | $ | 314,297,031 | | $ | 302,690,180 | | $ | 151,944,048 | |
| Authorized shares: | | | | | | | | | | | | | |
| Common | | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | |
| Preferred | | | Unlimited | | | Unlimited | | | Unlimited | | | Unlimited | |
See accompanying notes to financial statements.
| Statement of | | |
| | Operations | Year Ended February 28, 2017 |
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Investment Income | | $ | 11,143,233 | | $ | 20,482,213 | | $ | 19,429,716 | | $ | 9,261,957 | |
| Expenses | | | | | | | | | | | | | |
| Management fees | | | 1,637,218 | | | 3,007,631 | | | 2,931,738 | | | 1,416,591 | |
| Interest expense and amortization of offering costs | | | 1,499,146 | | | 2,907,203 | | | 1,351,025 | | | 1,221,797 | |
| Liquidity fees | | | — | | | — | | | 995,080 | | | — | |
| Remarketing fees | | | — | | | — | | | 107,300 | | | — | |
| Custodian fees | | | 40,956 | | | 62,625 | | | 60,395 | | | 35,732 | |
| Trustees fees | | | 7,468 | | | 14,374 | | | 13,461 | | | 6,660 | |
| Professional fees | | | 36,941 | | | 44,190 | | | 44,820 | | | 34,568 | |
| Shareholder reporting expenses | | | 21,805 | | | 41,853 | | | 41,756 | | | 23,542 | |
| Shareholder servicing agent fees | | | 17,553 | | | 37,593 | | | 14,601 | | | 6,370 | |
| Stock exchange listing fees | | | 10,323 | | | 10,296 | | | 10,296 | | | 10,296 | |
| Investor relations expenses | | | 14,375 | | | 26,828 | | | 25,977 | | | 16,229 | |
| Other | | | 9,215 | | | 44,591 | | | 61,785 | | | 61,790 | |
| Total expenses | | | 3,295,000 | | | 6,197,184 | | | 5,658,234 | | | 2,833,575 | |
| Net investment income (loss) | | | 7,848,233 | | | 14,285,029 | | | 13,771,482 | | | 6,428,382 | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | |
| Net realized gain (loss) from investments | | | (122,583 | ) | | (85,716 | ) | | 70,437 | | | (1,993,490 | ) |
| Change in net unrealized appreciation (depreciation) of investments | | | (7,782,530 | ) | | (15,175,056 | ) | | (15,075,506 | ) | | (4,498,908 | ) |
| Net realized and unrealized gain (loss) | | | (7,905,113 | ) | | (15,260,772 | ) | | (15,005,069 | ) | | (6,492,398 | ) |
| Net increase (decrease) in net assets applicable to common shares from operations | | $ | (56,880 | ) | $ | (975,743 | ) | $ | (1,233,587 | ) | $ | (64,016 | ) |
See accompanying notes to financial statements.
| Statement of | |
| | Changes in Net Assets |
| | | NAZ | | NUM | |
| | | | Year | | | Year | | | Year | | | Year | |
| | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | | 2/28/17 | | | 2/29/16 | | | 2/28/17 | | | 2/29/16 | |
| Operations | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 7,848,233 | | $ | 8,742,912 | | $ | 14,285,029 | | $ | 15,739,213 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | (122,583 | ) | | 403,719 | | | (85,716 | ) | | 1,050,322 | |
| Swaps | | | — | | | — | | | — | | | 45,681 | |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | (7,782,530 | ) | | 69,115 | | | (15,175,056 | ) | | 2,143,164 | |
| Swaps | | | — | | | — | | | — | | | (187,352 | ) |
| Net increase (decrease) in net assets applicable to common shares from operations | | | (56,880 | ) | | 9,215,746 | | | (975,743 | ) | | 18,791,028 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (8,732,348 | ) | | (9,230,917 | ) | | (14,902,675 | ) | | (16,161,393 | ) |
| From accumulated net realized gains | | | — | | | — | | | (1,290,275 | ) | | (97,893 | ) |
| Decrease in net assets applicable to common shares from distributions to common shareholders | | | (8,732,348 | ) | | (9,230,917 | ) | | (16,192,950 | ) | | (16,259,286 | ) |
| Capital Share Transactions | | | | | | | | | | | | | |
| Common shares: | | | | | | | | | | | | | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | 162,720 | | | 134,274 | | | — | | | — | |
| Cost of shares repurchased and retired | | | — | | | — | | | — | | | (297,904 | ) |
| Net increase (decrease) in net assets applicable to common shares from capital share transactions | | | 162,720 | | | 134,274 | | | — | | | (297,904 | ) |
| Net increase (decrease) in net assets applicable to common shares | | | (8,626,508 | ) | | 119,103 | | | (17,168,693 | ) | | 2,233,838 | |
| Net assets applicable to common shares at the beginning of period | | | 173,767,246 | | | 173,648,143 | | | 331,465,724 | | | 329,231,886 | |
| Net assets applicable to common shares at the end of period | | $ | 165,140,738 | | $ | 173,767,246 | | $ | 314,297,031 | | $ | 331,465,724 | |
| Undistributed (Over-distribution of) net investment income at the end of period | | $ | 303,081 | | $ | 1,020,363 | | $ | (304,164 | ) | $ | 279,165 | |
See accompanying notes to financial statements.
Statement of Changes in Net Assets (continued)
| | | NUO | | NTX | |
| | | | Year | | | Year | | | Year | | | Year | |
| | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | | 2/28/17 | | | 2/29/16 | | | 2/28/17 | | | 2/29/16 | |
| Operations | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 13,771,482 | | $ | 14,987,163 | | $ | 6,428,382 | | $ | 6,606,313 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | 70,437 | | | 476,198 | | | (1,993,490 | ) | | 388,027 | |
| Swaps | | | — | | | 20,171 | | | — | | | 53,624 | |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | (15,075,506 | ) | | 2,727,310 | | | (4,498,908 | ) | | 531,074 | |
| Swaps | | | — | | | (197,460 | ) | | — | | | (94,558 | ) |
| Net increase (decrease) in net assets applicable to common shares from operations | | | (1,233,587 | ) | | 18,013,382 | | | (64,016 | ) | | 7,484,480 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (13,932,214 | ) | | (15,299,135 | ) | | (6,562,812 | ) | | (6,557,796 | ) |
| From accumulated net realized gains | | | — | | | — | | | — | | | — | |
| Decrease in net assets applicable to common shares from distributions to common shareholders | | | (13,932,214 | ) | | (15,299,135 | ) | | (6,562,812 | ) | | (6,557,796 | ) |
| Capital Share Transactions | | | | | | | | | | | | | |
| Common shares: | | | | | | | | | | | | | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | — | | | — | | | — | | | — | |
| Cost of shares repurchased and retired | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to common shares from capital share transactions | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to common shares | | | (15,165,801 | ) | | 2,714,247 | | | (6,626,828 | ) | | 926,684 | |
| Net assets applicable to common shares at the beginning of period | | | 317,855,981 | | | 315,141,734 | | | 158,570,876 | | | 157,644,192 | |
| Net assets applicable to common shares at the end of period | | $ | 302,690,180 | | $ | 317,855,981 | | $ | 151,944,048 | | $ | 158,570,876 | |
| Undistributed (Over-distribution of) net investment income at the end of period | | $ | 254,772 | | $ | 96,460 | | $ | 390,167 | | $ | 435,913 | |
See accompanying notes to financial statements.
| Statement of | | |
| | Cash Flows | Year Ended February 28, 2017 |
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Cash Flows from Operating Activities: | | | | | | | | | | | | | |
| Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations | | $ | (56,880 | ) | $ | (975,743 | ) | $ | (1,233,587 | ) | $ | (64,016 | ) |
| Adjustments to reconcile the net increase (decrease) in net assets applicable to common shares from operations to net cash provided by (used in) operating activities: | | | | | | | | | | | | | |
| Purchases of investments | | | (44,238,066 | ) | | (114,001,534 | ) | | (49,806,025 | ) | | (30,182,365 | ) |
| Proceeds from sales and maturities of investments | | | 34,160,241 | | | 100,727,538 | | | 38,482,885 | | | 20,511,295 | |
| Taxes paid | | | — | | | (5,113 | ) | | — | | | — | |
| Amortization (Accretion) of premiums and discounts, net | | | 1,274,757 | | | 2,359,840 | | | 1,381,954 | | | 587,451 | |
| Amortization of deferred offering costs | | | 18,552 | | | 29,231 | | | 9,807 | | | 169,036 | |
| (Increase) Decrease in: | | | | | | | | | | | | | |
| Receivable for interest | | | 2,633 | | | (22,828 | ) | | 61,464 | | | (99,087 | ) |
| Receivable for investments sold | | | (1,433,062 | ) | | (1,259,319 | ) | | (1,130,350 | ) | | — | |
| Other assets | | | 168 | | | (1,315 | ) | | 114,371 | | | 143 | |
| Increase (Decrease) in: | | | | | | | | | | | | | |
| Payable for interest | | | 106,903 | | | 209,449 | | | — | | | — | |
| Payable for investments purchased | | | 1,768,255 | | | 1,166,063 | | | — | | | — | |
| Payable for offering costs | | | 84,619 | | | 55,392 | | | 70,478 | | | — | |
| Accrued management fees | | | (5,043 | ) | | (11,241 | ) | | (13,127 | ) | | (4,060 | ) |
| Accrued Trustees fees | | | 1,703 | | | 5,282 | | | 6,108 | | | 1,488 | |
| Accrued other expenses | | | (24,078 | ) | | (5,500 | ) | | (28,048 | ) | | 13,356 | |
| Net realized (gain) loss from investments | | | 122,583 | | | 85,716 | | | (70,437 | ) | | 1,993,490 | |
| Change in net unrealized appreciation (depreciation) of investments | | | 7,782,530 | | | 15,175,056 | | | 15,075,506 | | | 4,498,908 | |
| Net cash provided by (used in) operating activities | | | (434,185 | ) | | 3,530,974 | | | 2,920,999 | | | (2,574,361 | ) |
| Cash Flows from Financing Activities: | | | | | | | | | | | | | |
| Proceeds from VMTP Shares issued, at liquidation preference | | | 9,300,000 | | | 14,000,000 | | | — | | | — | |
| Increase (Decrease) in Floating rate obligations | | | — | | | — | | | 8,000,000 | | | 8,000,000 | |
| Cash distributions paid to common shareholders | | | (8,679,641 | ) | | (16,310,301 | ) | | (14,077,161 | ) | | (6,559,077 | ) |
| Net cash provided by (used in) financing activities | | | 620,359 | | | (2,310,301 | ) | | (6,077,161 | ) | | 1,440,923 | |
| Net Increase (Decrease) in Cash | | | 186,174 | | | 1,220,673 | | | (3,156,162 | ) | | (1,133,438 | ) |
| Cash at the beginning of period | | | 723,153 | | | 222,658 | | | 3,414,508 | | | 1,867,828 | |
| Cash at the end of period | | $ | 909,327 | | $ | 1,443,331 | | $ | 258,346 | | $ | 734,390 | |
| Supplemental Disclosures of Cash Flow Information | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Cash paid for interest (excluding amortization of offering costs) | | $ | 1,173,690 | | $ | 2,468,523 | | $ | 1,241,218 | | $ | 1,052,761 | |
| Non-cash financing activities not included herein consists of reinvestments of common share distributions | | | 162,720 | | | — | | | — | | | — | |
See accompanying notes to financial statements.
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | | Less Distributions | | | | | | | | | | |
| | | | | | Investment Operations | | to Common Shareholders | | Common Share | |
| | | | Beginning
Common
Share
NAV | | | Net
Investment
Income
(Loss | ) | | Net
Realized/
Unrealized
Gain (Loss | ) | | Total | | | From
Net
Investment
Income | | | From
Accum-
ulated Net
Realized
Gains | | | Total | | | Discount
per
Share
Repur-
chased
and
Retired | | | Ending
NAV | | | Ending
Share
Price | |
| NAZ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | $ | 15.01 | | $ | 0.68 | | $ | (0.68 | ) | $ | (0.00 | ) | $ | (0.75 | ) | $ | — | | $ | (0.75 | ) | $ | — | | $ | 14.26 | | $ | 14.22 | |
| 2016 | | | 15.02 | | | 0.76 | | | 0.03 | | | 0.79 | | | (0.80 | ) | | — | | | (0.80 | ) | | — | | | 15.01 | | | 15.74 | |
| 2015 | | | 14.15 | | | 0.79 | | | 0.87 | | | 1.66 | | | (0.79 | ) | | — | | | (0.79 | ) | | — | | | 15.02 | | | 14.37 | |
| 2014 | | | 15.47 | | | 0.55 | | | (1.10 | ) | | (0.55 | ) | | (0.77 | ) | | — | | | (0.77 | ) | | — | | | 14.15 | | | 12.79 | |
| 2013 | | | 14.82 | | | 0.75 | | | 0.67 | | | 1.42 | | | (0.77 | ) | | — | | | (0.77 | ) | | — | | | 15.47 | | | 15.70 | |
| NUM | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | | 15.93 | | | 0.68 | | | (0.73 | ) | | (0.05 | ) | | (0.72 | ) | | (0.06 | ) | | (0.78 | ) | | — | | | 15.10 | | | 13.50 | |
| 2016 | | | 15.80 | | | 0.76 | | | 0.15 | | | 0.91 | | | (0.78 | ) | | — | * | | (0.78 | ) | | — | * | | 15.93 | | | 14.01 | |
| 2015 | | | 14.98 | | | 0.80 | | | 0.88 | | | 1.68 | | | (0.86 | ) | | — | | | (0.86 | ) | | — | | | 15.80 | | | 13.85 | |
| 2014 | | | 16.35 | | | 0.80 | | | (1.28 | ) | | (0.48 | ) | | (0.89 | ) | | — | | | (0.89 | ) | | — | * | | 14.98 | | | 13.45 | |
| 2013 | | | 15.95 | | | 0.74 | | | 0.55 | | | 1.29 | | | (0.89 | ) | | — | | | (0.89 | ) | | — | | | 16.35 | | | 15.62 | |
| (a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| * | Rounds to less than $0.01 per share. |
| | | | | | | Common Share Supplemental Data/ | |
| | | | Ratios Applicable to Common Shares | |
| | Common Share | | | | | | | | | |
| | Total Returns | | | | | Ratios to Average Net Assets(b) | | | | |
| | Based
on
NAV | (a) | | Based
on
Share
Price | (a) | | Ending
Net
Assets (000 | ) | | Expenses | (c) | | Net
Investment
Income
(Loss | ) | | Portfolio
Turnover
Rate | (d) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | (0.07 | )% | | (5.03 | )% | $ | 165,141 | | | 1.91 | % | | 4.54 | % | | 13 | % |
| | 5.45 | | | 15.59 | | | 173,767 | | | 1.51 | | | 5.12 | | | 9 | |
| | 12.01 | | | 18.94 | | | 173,648 | | | 1.56 | | | 5.37 | | | 13 | |
| | (3.40 | ) | | (13.52 | ) | | 163,635 | | | 2.47 | | | 4.93 | | | 14 | |
| | 9.77 | | | 13.02 | | | 69,236 | | | 1.80 | | | 4.94 | | | 10 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | (0.40 | ) | | 1.74 | | | 314,297 | | | 1.88 | | | 4.34 | | | 20 | |
| | 5.97 | | | 7.15 | | | 331,466 | | | 1.52 | | | 4.85 | | | 12 | |
| | 11.45 | | | 9.48 | | | 329,232 | | | 1.57 | | | 5.14 | | | 15 | |
| | (2.76 | ) | | (8.00 | ) | | 312,180 | | | 1.95 | | | 5.32 | | | 15 | |
| | 8.27 | | | 7.30 | | | 341,057 | | | 1.84 | | | 5.09 | | | 12 | |
| (b) | Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to preferred shares issued by the Fund. |
| (c) | The expense ratios reflect, among other things, all interest expense and other costs related to preferred shares (as described in Note 4 – Fund Shares, Preferred Shares) and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities), where applicable, as follows: |
| NAZ | | | | |
| Year Ended 2/28–2/29: | | | | |
| 2017 | | | 0.87 | % |
| 2016 | | | 0.49 | |
| 2015 | | | 0.50 | |
| 2014 | | | 1.32 | |
| 2013 | | | 0.57 | |
| NUM | | | | |
| Year Ended 2/28–2/29: | | | | |
| 2017 | | | 0.88 | % |
| 2016 | | | 0.52 | |
| 2015 | | | 0.53 | |
| 2014 | | | 0.84 | |
| 2013 | | | 0.70 | |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Financial Highlights (continued)
Selected data for a common share outstanding throughout each period:
| | | | | | | | | | | | | | | Less Distributions | | | | | | | | | | | | | |
| | | | | | Investment Operations | | to Common Shareholders | | | Common Share | |
| | | | Beginning
Common
Share
NAV | | | Net
Investment
Income
(Loss | ) | | Net
Realized/
Unrealized
Gain (Loss | ) | | Total | | | From
Net
Investment
Income | | | From
Accum-
ulated Net
Realized
Gains | | | Total | | | Shelf
Offering
Costs | | | Premium
per
Share
Sold
through
Shelf
Offering | | | Ending
NAV | | | Ending
Share
Price | |
| NUO | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | $ | 17.16 | | $ | 0.74 | | $ | (0.81 | ) | $ | (0.07 | ) | $ | (0.75 | ) | $ | — | | $ | (0.75 | ) | $ | — | | $ | — | | $ | 16.34 | | $ | 14.97 | |
| 2016 | | | 17.01 | | | 0.81 | | | 0.17 | | | 0.98 | | | (0.83 | ) | | — | | | (0.83 | ) | | — | | | — | | | 17.16 | | | 15.44 | |
| 2015 | | | 16.02 | | | 0.85 | | | 1.07 | | | 1.92 | | | (0.93 | ) | | — | | | (0.93 | ) | | — | | | — | | | 17.01 | | | 15.40 | |
| 2014 | | | 17.64 | | | 0.76 | | | (1.39 | ) | | (0.63 | ) | | (0.99 | ) | | — | | | (0.99 | ) | | — | | | — | | | 16.02 | | | 14.75 | |
| 2013 | | | 17.17 | | | 0.89 | | | 0.54 | | | 1.43 | | | (0.96 | ) | | — | | | (0.96 | ) | | — | | | — | | | 17.64 | | | 17.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NTX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | | 15.81 | | | 0.63 | | | (0.64 | ) | | (0.01 | ) | | (0.65 | ) | | — | | | (0.65 | ) | | — | | | — | | | 15.15 | | | 14.28 | |
| 2016 | | | 15.72 | | | 0.66 | | | 0.08 | | | 0.74 | | | (0.65 | ) | | — | | | (0.65 | ) | | — | | | — | | | 15.81 | | | 14.66 | |
| 2015 | | | 14.82 | | | 0.62 | | | 0.96 | | | 1.58 | | | (0.68 | ) | | — | | | (0.68 | ) | | — | | | — | | | 15.72 | | | 14.35 | |
| 2014 | | | 15.87 | | | 0.66 | | | (1.01 | ) | | (0.35 | ) | | (0.70 | ) | | — | | | (0.70 | ) | | — | * | | — | * | | 14.82 | | | 13.54 | |
| 2013 | | | 15.46 | | | 0.68 | | | 0.47 | | | 1.15 | | | (0.77 | ) | | — | | | (0.77 | ) | | (0.01 | ) | | 0.04 | | | 15.87 | | | 16.00 | |
| (a) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| * | Rounds to less than $0.01 per share. |
| | | | | | | | | Common Share Supplemental Data/ | |
| | | | | | Ratios Applicable to Common Shares | |
| | | Common Share | | | | | | | | | |
| | | Total Returns | | | | | Ratios to Average Net Assets(b) | | | | |
| | | | Based
on
NAV | (a) | | Based
on
Share
Price | (a) | | Ending
Net
Assets (000 | ) | | Expenses | (c) | | Net
Investment
Income
(Loss | ) | | Portfolio
Turnover
Rate | (d) |
| | | | | | | | | | | | | | | | | | | | |
| | | | (0.49 | )% | | 1.67 | % | $ | 302,690 | | | 1.79 | % | | 4.35 | % | | 8 | % |
| | | | 5.95 | | | 5.96 | | | 317,856 | | | 1.58 | | | 4.83 | | | 10 | |
| | | | 12.23 | | | 10.79 | | | 315,142 | | | 1.62 | | | 5.10 | | | 15 | |
| | | | (3.38 | ) | | (11.39 | ) | | 296,668 | | | 2.15 | | | 5.45 | | | 13 | |
| | | | 8.53 | | | 11.27 | | | 172,898 | | | 1.76 | | | 5.14 | | | 13 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | (0.12 | ) | | 1.79 | | | 151,944 | | | 1.78 | | | 4.05 | | | 9 | |
| | | | 4.89 | | | 7.02 | | | 158,571 | | | 1.78 | | | 4.26 | | | 14 | |
| | | | 10.81 | | | 11.07 | | | 157,644 | | | 2.33 | | | 4.05 | | | 12 | |
| | | | (2.11 | ) | | (11.03 | ) | | 148,580 | | | 2.49 | | | 4.46 | | | 13 | |
| | | | 7.80 | | | 2.97 | | | 158,920 | | | 2.38 | | | 4.33 | | | 12 | |
| (b) | Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to preferred shares issued by the Fund. |
| (c) | The expense ratios reflect, among other things, all interest expense and other costs related to preferred shares (as described in Note 4 – Fund Shares, Preferred Shares) and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities), where applicable, as follows: |
| NUO | | | | |
| Year Ended 2/28–2/29: | | | | |
| 2017 | | | 0.77 | % |
| 2016 | | | 0.55 | |
| 2015 | | | 0.57 | |
| 2014 | | | 1.05 | |
| 2013 | | | 0.61 | |
| NTX | | | | |
| Year Ended 2/28–2/29: | | | | |
| 2017 | | | 0.77 | % |
| 2016 | | | 0.77 | |
| 2015 | | | 1.26 | |
| 2014 | | | 1.31 | |
| 2013 | | | 1.27 | |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
See accompanying notes to financial statements.
Financial Highlights (continued)
| | | | | | | | | | | MTP and VMTP | |
| | | MTP Shares | | VMTP Shares | | Shares at the | |
| | | at the End of Period (a) | | at the End of Period | | End of Period | |
| | | | | | | | | | | Asset | |
| | | Aggregate | | Asset | | Aggregate | | Asset | | Coverage | |
| | | Amount | | Coverage | | Amount | | Coverage | | Per $1 | |
| | | Outstanding | | Per $10 | | Outstanding | | Per $100,000 | | Liquidation | |
| | | | (000 | ) | | Share | | | (000 | ) | | Share | | | Preference | |
| NAZ | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | |
| 2017 | | $ | — | | $ | — | | $ | 88,300 | | $ | 287,022 | | $ | — | |
| 2016 | | | — | | | — | | | 79,000 | | | 319,959 | | | — | |
| 2015 | | | — | | | — | | | 79,000 | | | 319,808 | | | — | |
| 2014 | | | — | | | — | | | 79,000 | | | 307,133 | | | — | |
| 2013 | | | — | | | — | | | 28,000 | | | 347,271 | | | — | |
| | | | | | | | | | | | | | | | | |
| NUM | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | |
| 2017 | | | — | | | — | | | 173,000 | | | 281,675 | | | — | |
| 2016 | | | — | | | — | | | 159,000 | | | 308,469 | | | — | |
| 2015 | | | — | | | — | | | 159,000 | | | 307,064 | | | — | |
| 2014 | | | — | | | — | | | 159,000 | | | 296,340 | | | — | |
| 2013 | | | 16,313 | | | 31.57 | | | 141,800 | | | 315,704 | | | 3.16 | |
| (a) | The Ending and Average Market Value Per Share for each Series of the Fund's MTP Shares were as follows: |
| | | | 2014 | | | 2013 | |
| NAZ | | | | | | | |
| Series 2015 (NAZ PRC) | | | | | | | |
| Ending Market Value per Share | | $ | — | | $ | — | |
| Average Market Value per Share | | | 10.02 | Δ | | — | |
| Series 2016 (NAZ PRD) | | | | | | | |
| Ending Market Value per Share | | | — | | | — | |
| Average Market Value per Share | | | 10.11 | Δ | | — | |
| | | | | | | | |
| NUM | | | | | | | |
| Series 2015 (NUM PRC) | | | | | | | |
| Ending Market Value per Share | | | — | | | 10.08 | |
| Average Market Value per Share | | | 10.02 | ΔΔΔ | | 10.06 | ΔΔ |
| Δ | For the period April 8, 2013 (effective date of the reorganizations) through December 20, 2013. |
| ΔΔ | For the period January 7, 2013 (effective date of the reorganizations) through February 28, 2013. |
| ΔΔΔ | For the period March 1, 2013 through December 20, 2013. |
See accompanying notes to financial statements.
| | | iMTP Shares | | MTP Shares | | VMTP Shares | | VRDP Shares | |
| | | at the End of Period | | at the End of Period (a) | | at the End of Period | | at the End of Period | |
| | | Aggregate | | Asset | | Aggregate | | Asset | | Aggregate | | Asset | | Aggregate | | Asset | |
| | | Amount | | Coverage | | Amount | | Coverage | | Amount | | Coverage | | Amount | | Coverage | |
| | | Outstanding | | Per $5,000 | | Outstanding | | Per $10 | | Outstanding | | Per $100,000 | | Outstanding | | Per $100,000 | |
| | | | (000 | ) | | Share | | | (000 | ) | | Share | | | (000 | ) | | Share | | | (000 | ) | | Share | |
| NUO | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 148,000 | | $ | 304,520 | |
| 2016 | | | — | | | — | | | — | | | — | | | — | | | — | | | 148,000 | | | 314,768 | |
| 2015 | | | — | | | — | | | — | | | — | | | — | | | — | | | 148,000 | | | 312,934 | |
| 2014 | | | — | | | — | | | — | | | — | | | — | | | — | | | 148,000 | | | 300,451 | |
| 2013 | | | — | | | — | | | — | | | — | | | 73,500 | | | 335,236 | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| NTX | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 2/28–2/29: | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2017 | | | 72,000 | | | 15,552 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2016 | | | 72,000 | | | 16,012 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2015 | | | — | | | — | | | 70,920 | | | 32.23 | | | — | | | — | | | — | | | — | |
| 2014 | | | — | | | — | | | 70,920 | | | 30.95 | | | — | | | — | | | — | | | — | |
| 2013 | | | — | | | — | | | 70,920 | | | 32.41 | | | — | | | — | | | — | | | — | |
| (a) | The Ending and Average Market Value Per Share for each Series of the Fund's MTP Shares were as follows: |
| | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| NUO | | | | | | | | | | | | | | | | |
| Series 2014 (NUO PRACL) | | | | | | | | | | | | | | | | |
| Ending Market Value per Share | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| Average Market Value per Share | | | — | | | — | | | 10.01 | Ω | | — | | | — | |
| Series 2015 (NUO PRCCL) | | | | | | | | | | | | | | | | |
| Ending Market Value per Share | | | — | | | — | | | — | | | — | | | — | |
| Average Market Value per Share | | | — | | | — | | | 10.03 | Ω | | — | | | — | |
| Series 2016 (NUO PRDCL) | | | | | | | | | | | | | | | | |
| Ending Market Value per Share | | | — | | | — | | | — | | | — | | | — | |
| Average Market Value per Share | | | — | | | — | | | 10.06 | Ω | | — | | | — | |
| | | | | | | | | | | | | | | | | |
| NTX | | | | | | | | | | | | | | | | |
| Series 2015 (NTX PRCCL) | | | | | | | | | | | | | | | | |
| Ending Market Value per Share | | | — | | | 10.02 | | | 10.03 | | | 10.04 | | | 10.05 | |
| Average Market Value per Share | | | 10.01 | ΩΩ | | 10.04 | | | 10.04 | | | 10.06 | | | 9.97 | |
| Ω | For the period April 8, 2013 (effective date of the reorganization) through October 7, 2013. |
| ΩΩ | For the period March 1, 2015 through April 20, 2015. |
See accompanying notes to financial statements.
Notes to Financial Statements
1. General Information and Significant Accounting Policies
General Information
Fund Information
The state funds covered in this report and their corresponding New York Stock Exchange ("NYSE") symbols are as follows (each a "Fund" and collectively, the "Funds"):
| | • | Nuveen Arizona Quality Municipal Income Fund (NAZ) |
| | • | Nuveen Michigan Quality Municipal Income Fund (NUM) |
| | • | Nuveen Ohio Quality Municipal Income Fund (NUO) |
| | • | Nuveen Texas Quality Municipal Income Fund (NTX) |
The Funds are registered under the Investment Company Act of 1940, as amended, as diversified, closed-end management investment companies. NAZ, NUM and NUO were organized as Massachusetts business trusts on April 8, 2013, January 7, 2013 and April 8, 2013, respectively (previously organized as Minnesota trusts on January 23, 1991, July 25, 1991 and October 17, 1991, respectively). NTX was organized as a Massachusetts business trust on July 26, 1991.
The end of the reporting period for the Funds is February 28, 2017, and the period covered by these Notes to Financial Statements is the fiscal year ended February 28, 2017 (the "current fiscal period").
Effective December 28, 2016, the Funds had the following name changes:
| | | |
| | • | NAZ changed its name from Nuveen Arizona Premium Income Municipal Fund |
| | • | NUM changed its name from Nuveen Michigan Quality Income Municipal Fund |
| | • | NUO changed its name from Nuveen Ohio Quality Income Municipal Fund |
| | • | NTX changed its name from Nuveen Texas Quality Income Municipal Fund |
Investment Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the "Adviser"), a subsidiary of Nuveen, LLC ("Nuveen"). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds' portfolios, manages the Funds' business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the "Sub-Adviser"), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Investment Objectives and Principal Investment Strategies
Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories.
Effective August 5, 2016, NAZ changed its investment policy to limit the amount of securities subject to the alternative minimum tax ("AMT") to no more than 20% (30% prior to August 5, 2016) of the Fund's managed assets (as defined in Note 7 – Management Fees and Other Transactions with Affiliates). In addition, effective August 5, 2016, NUM, NUO and NTX have each added an investment policy to limit the amount of securities subject to AMT to no more than 20% of each Fund's managed assets.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 "Financial Services – Investment Companies." The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis
may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the following Fund's outstanding when-issued/delayed delivery purchase commitments were as follows:
| | | | NAZ | |
| Outstanding when-issued/delayed delivery purchase commitments | | $ | 1,655,059 | |
Investment Income
Investment income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as "Legal fee refund" on the Statement of Operations.
Dividends and Distributions to Common Shareholders
Dividends from net investment income, if any, are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to common shareholders of net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications
Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Compensation
The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The 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.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivative Association, Inc. ("ISDA") master agreements or other similar arrangements ("netting agreements"). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.
The Funds' investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to common shares from operations during the current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Notes to Financial Statements (continued)
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, prepayment speeds, credit risk, 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 Funds' Board of Trustees (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 a Fund's net asset value ("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, 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 each Fund's fair value measurements as of the end of the reporting period:
| NAZ | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 254,189,401 | | $ | — | | $ | 254,189,401 | |
| NUM | | | | | | | | | | | | | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 500,008,911 | | $ | — | | $ | 500,008,911 | |
| NUO | | | | | | | | | | | | | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 453,270,327 | | $ | — | | $ | 453,270,327 | |
| NTX | | | | | | | | | | | | | |
| Long-Term Investments*: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 229,190,580 | | $ | — | | $ | 229,190,580 | |
| * | Refer to the Fund's Portfolio of Investments for industry classifications. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board, is responsible for making fair value determinations, evaluating the effectiveness of the Funds' pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser's dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
| | (i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
| | | |
| | (ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument's current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond (referred to as an "Underlying Bond"), typically with a fixed interest rate, into a special purpose tender option bond ("TOB") trust (referred to as the "TOB Trust") created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as "Floaters"), in face amounts equal to some fraction of the Underlying Bond's par amount or market value, and (b) an inverse floating rate certificate (referred to as an "Inverse Floater") that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider ("Liquidity Provider"), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, and in most circumstances the Inverse Floater holder bears substantially all of the Underlying Bond's downside investment risk and also benefits disproportionately from any potential appreciation of the Underlying Bond's value. The value of an Inverse Floater will be more volatile than that of the Underlying Bond because the interest rate is dependent on not only the fixed coupon rate of the Underlying Bond but also on the short-term interest paid on the Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the "Trustee") transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.
The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a "self-deposited Inverse Floater"). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an "externally-deposited Inverse Floater").
An investment in a self-deposited Inverse Floater is accounted for as a "financing" transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund's Portfolio of Investments as "(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund recognizing as liabilities, labeled "Floating rate obligations" on the Statement of
Notes to Financial Statements (continued)
Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in "Investment Income" the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust's borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund's Portfolio of Investments as "(IF) – Inverse floating rate investment." For an externally-deposited Inverse Floater, a Fund's Statement of Assets and Liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in "Investment Income" only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.
As of the end of the reporting period, the aggregate value of Floaters issued by each Fund's TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations Outstanding | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Floating rate obligations: self-deposited Inverse Floaters | | $ | 2,755,000 | | $ | 18,890,000 | | $ | 8,000,000 | | $ | 8,000,000 | |
| Floating rate obligations: externally-deposited Inverse Floaters | | | 14,215,000 | | | 8,430,000 | | | 23,155,000 | | | — | |
| Total | | $ | 16,970,000 | | $ | 27,320,000 | | $ | 31,155,000 | | $ | 8,000,000 | |
During the current fiscal period, the average amount of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rate and fees related to self-deposited Inverse Floaters, were as follows:
| Self-Deposited Inverse Floaters | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Average floating rate obligations outstanding | | $ | 2,755,000 | | $ | 18,890,000 | | $ | 3,813,699 | | $ | 2,739,726 | |
| Average annual interest rate and fees | | | 1.09 | % | | 1.13 | % | | 1.23 | % | | 1.25 | % |
TOB Trusts are supported by a liquidity facility provided by a Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide a loan to the extent that the proceeds of the sale of the Underlying Bond is not sufficient to pay the purchase price of the Floaters.
The size of the commitment under the loan facility for a given TOB Trust is at least equal to the balance of that TOB Trust's outstanding Floaters plus any accrued interest. In consideration of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than the rate that would have been paid had the Floaters been successfully remarketed.
As described above, any amounts outstanding under a liquidity facility are recognized as a component of "Floating rate obligations" on the Statement of Assets and Liabilities by the Fund holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period, there were no loans outstanding under any such facility.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse arrangement" or "credit recovery swap") (TOB Trusts involving such agreements are referred to herein as "Recourse Trusts"), under which a Fund agrees to reimburse the Liquidity Provider for the Trust's Floaters, in certain circumstances, for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on an Inverse Floater may increase beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or the
Liquidity Provider. Any such shortfall amount in the aggregate is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.
As of the end of the reporting period, each Fund's maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations – Recourse Trusts | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters | | $ | 2,755,000 | | $ | 12,265,000 | | $ | — | | $ | 8,000,000 | |
| Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters | | | 7,500,000 | | | 8,430,000 | | | 4,480,000 | | | — | |
| Total | | $ | 10,255,000 | | $ | 20,695,000 | | $ | 4,480,000 | | $ | 8,000,000 | |
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.
Investments in Derivatives
In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain other derivative instruments, such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Although the Funds are authorized to invest in derivative instruments and may do so in the future, they did not make any such investments during the current fiscal period.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Common Shares
Common Shares Equity Shelf Program
During the current reporting period, NAZ filed an initial registration statement with the Securities and Exchange Commission to issue additional common shares through an equity shelf program, which is not yet effective. Under this program the Fund, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund's NAV per common share.
Notes to Financial Statements (continued)
Common Share Transactions
Transactions in common shares for the Funds during the Funds' current and prior fiscal period, where applicable, were as follows:
| | | NAZ | | NUM | |
| | | | Year | | | Year | | | Year | | | Year | |
| | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | | 2/28/17 | | | 2/29/16 | | | 2/28/17 | | | 2/29/16 | |
| Common shares: | | | | | | | | | | | | | |
| Issued to shareholders due to reinvestment of distributions | | | 10,466 | | | 9,077 | | | — | | | — | |
| Repurchased and retired | | | — | | | — | | | — | | | (22,500 | ) |
| Weighted average common share: | | | | | | | | | | | | | |
| Price per share repurchased and retired | | $ | — | | $ | — | | $ | — | | $ | 13.22 | |
| Discount per share repurchased and retired | | | — | | | — | | | — | | | 14.99 | % |
Preferred Shares
Institutional MuniFund Term Preferred Shares
The following Fund has issued and has outstanding Institutional MuniFund Term Preferred ("iMTP") Shares, with a $5,000 liquidation preference per share. iMTP Shares are issued via private placement and are not publicly available.
As of the end of the reporting period, details of iMTP Shares outstanding were as follows:
| | | | | | | Shares | | | Liquidation | |
| Fund | | | Series | | | Outstanding | | | Preference | |
| NTX | | | 2018 | | | 14,400 | | $ | 72,000,000 | |
The Fund is obligated to redeem its iMTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed by the Fund. iMTP Shares are subject to optional and mandatory redemption in certain circumstances. The iMTP Shares are not subject to redemption at the option of the Fund for approximately one year following the date of issuance, at which point the Fund may redeem at its option ("Optional Redemption Date") and any date thereafter. The Fund may be obligated to redeem a certain amount of iMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends. The Term Redemption Date and Optional Redemption Date for the Fund's iMTP Shares are as follows:
| | | | | | | Term | | | Optional | |
| Fund | | | Series | | Redemption Date | | Redemption Date | |
| NTX | | | 2018 | | | November 1, 2018 | | | May 1, 2016 | |
The average liquidation preference of iMTP Shares outstanding and annualized dividend rate for the Fund during the current fiscal period, were as follows:
| | | | NTX | |
| Average liquidation preference of iMTP Shares outstanding | | $ | 72,000,000 | |
| Annualized dividend rate | | | 1.41 | % |
iMTP Shares are subject to restrictions on transfer and may only be sold or transferred to "qualified institutional buyers." iMTP Shares are short-term or short/intermediate-term instruments that pay a variable dividend rate tied to a short-term index, plus an additional fixed "spread" amount established at the time of issuance. The fair value of iMTP Shares is expected to be approximately their liquidation preference so long as the fixed "spread" on the iMTP Shares remains roughly in line with the "spread" being demanded by investors on instruments having similar terms in the current market environment. In present market conditions, the Fund's Adviser has determined that the fair value of iMTP Shares is approximately their liquidation preference, but their fair value could vary if market conditions change materially. For financial reporting purposes, the liquidation preference of iMTP Shares is recorded as a liability and recognized as a component of "Institutional MuniFund Term Preferred ("iMTP") Shares, net of deferred offering costs" on the Statement of Assets and Liabilities.
Dividends on the iMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly. Unpaid dividends on iMTP Shares are recognized as a component of "Interest payable" on the Statement of Assets and Liabilities, when applicable. Dividends accrued on iMTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
Costs incurred by the Fund in connection with its offering of iMTP Shares were recorded as a deferred charge, which are amortized over the life of the shares and recognized as components of "Institutional MuniFund Term Preferred ("iMTP") Shares, net of deferred offering costs" on the Statement of Assets and Liabilities and "Interest expense and amortization of offering costs" on the Statement of Operations.
Variable Rate MuniFund Term Preferred Shares
The following Funds have issued and have outstanding Variable Rate MuniFund Term Preferred ("VMTP") Shares, with a $100,000 liquidation preference per share. VMTP Shares are issued via private placement and are not publicly available.
As of the end of the reporting period, VMTP Shares outstanding, at liquidation preference, for each Fund were as follows:
| | | | | | | Shares | | | Liquidation | |
| Fund | | | Series | | | Outstanding | | | Preference | |
| NAZ | | | 2019 | | | 883 | | $ | 88,300,000 | |
| NUM | | | 2019 | | | 1,730 | | $ | 173,000,000 | |
During the current reporting period, NAZ and NUM refinanced all of their outstanding Series 2016 VMTP Shares with the issuance of new Series 2019 VMTP Shares. In conjunction with this refinancing NAZ and NUM issued an additional $9,300,000 and $14,000,000 Series 2019 VMTP Shares at liquidation preference, respectively, to be invested in accordance with each Fund's investment policies.
Each Fund is obligated to redeem its VMTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares may be redeemed at the option of each Fund, subject to payment of premium for approximately one year following the date of issuance ("Premium Expiration Date"), and at the redemption price per share thereafter. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends. Each Fund may be obligated to redeem a certain amount of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The Term Redemption Date and Premium Expiration Date for each Fund's series of VMTP Shares are as follows:
| | | | | | | Term | | | Premium | |
| Fund | | | Series | Redemption Date | | Expiration Date | |
| NAZ | | | 2019 | | | June 1, 2019 | | | May 31, 2017 | |
| NUM | | | 2019 | | | June 1, 2019 | | | May 31, 2017 | |
The average liquidation preference of VMTP Shares outstanding and annualized dividend rate for each Fund during the current fiscal period were as follows:
| | | | NAZ | | | NUM | |
| Average liquidation preference of VMTP Shares outstanding | | $ | 85,955,890 | | $ | 169,471,233 | |
| Annualized dividend rate | | | 1.45 | % | | 1.45 | % |
VMTP Shares are subject to restrictions on transfer, generally do not trade, and market quotations are generally not available. VMTP Shares are short-term or short/intermediate-term instruments that pay a variable dividend rate tied to a short-term index, plus an additional fixed "spread" amount established at the time of issuance. The fair value of VMTP Shares is expected to be approximately their liquidation preference so long as the fixed "spread" on the VMTP Shares remains roughly in line with the "spread" being demanded by investors on instruments having similar terms in the current market environment. In present market conditions, the Funds' Adviser has determined that the fair value of VMTP Shares is approximately their liquidation preference, but their fair value could vary if market conditions change materially. For financial reporting purposes, the liquidation preference
Notes to Financial Statements (continued)
of VMTP Shares is a liability and is recognized as a component of "Variable Rate MuniFund Term Preferred ("VMTP") Shares, net of deferred offering costs" on the Statement of Assets and Liabilities.
Dividends on the VMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly. Unpaid dividends on VMTP Shares are recognized as a component of "Interest payable" on the Statement of Assets and Liabilities. Dividends accrued on VMTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
Costs incurred in connection with each Fund's offering of VMTP Shares were recorded as a deferred charges, which are amortized over the life of the shares and are recognized as components of "Variable Rate MuniFund Term Preferred ("VMTP") Shares, net of offering costs" on the Statement of Assets and Liabilities and "Interest expense and amortization of offering costs" on the Statement of Operations.
The Funds each incurred offering costs of $200,000 in connection with its issuance of Series 2019 VMTP Shares, which was expensed as incurred and is recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.
Variable Rate Demand Preferred Shares
The following Fund has issued and has outstanding Variable Rate Demand Preferred ("VRDP") Shares, with a $100,000 liquidation preference per share. VRDP Shares are issued via private placement and are not publicly available.
As of the end of the reporting period, details of the Fund's VRDP Shares outstanding were as follows:
| | | | | | | Shares | | | Liquidation | | | | |
| Fund | | | Series | | | Outstanding | | | Preference | | | Maturity | |
| NUO | | | 1 | | | 1,480 | | $ | 148,000,000 | | September 1, 2043 | |
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom the Fund has contracted in the event that the VRDP Shares are not able to be successfully remarketed. The Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing. The Fund pays an annual remarketing fee of 0.10% on the aggregate principal amount of all VRDP Shares outstanding. The Fund's VRDP Shares have successfully remarketed since issuance.
During the current fiscal period, NUO designated a special rate period until November 15, 2017, for its Series 1 VRDP Shares. In connection with the transition to the special rate period, each series of VRDP Shares have been remarketed and sold to an institutional investor. During the special rate period, the VRDP Shares will not be remarketed by a remarketing agent, be subject to optional or mandatory tender events, or be supported by a liquidity provider. During the period, VRDP dividends will be set monthly as a floating rate based on the predetermined formula. Following the initial special rate period, Special Rate Period VRDP Shares will transition to traditional VRDP Shares with dividends set at weekly remarketings, and be supported by a designated liquidity provider, unless the Board approves a subsequent special rate period.
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation preference. In the event that VRDP Shares are unable to be successfully remarketed, the dividend rate will be the maximum rate which is designed to escalate according to a specified schedule in order to enhance the remarketing agent's ability to successfully remarket the VRDP Shares.
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of the Fund. The Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends.
The average liquidation preference of VRDP Shares outstanding and annualized dividend rate for the Fund during the current fiscal period were as follows:
| | | | NUO | |
| Average liquidation preference of VRDP Shares outstanding | | $ | 148,000,000 | |
| Annualized dividend rate | | | 0.81 | % |
For financial reporting purposes, the liquidation preference of VRDP Shares is a liability and is recognized as a component of "Variable Rate Demand Preferred ("VRDP") Shares, net of deferred offering costs" on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of "Interest payable" on the Statement of Assets and Liabilities, when applicable. Dividends accrued on VRDP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Costs incurred by the Fund in connection with its offerings of VRDP Shares were recorded as a deferred charge, which are amortized over the life of the shares and are recognized as a component of "Variable Rate Demand Preferred ("VRDP") Shares, net of deferred offering costs" on the Statement of Assets and Liabilities and "Interest expense and amortization of offerings costs" on the Statement of Operations. In addition to interest expense, the Fund also pays a per annum liquidity fee to the liquidity provider, as well as a remarketing fee, which are recognized as "Liquidity fees" and "Remarketing fees," respectively, on the Statement of Operations.
Preferred Share Transactions
Transactions in preferred shares for the Funds during the Funds' current and prior fiscal period, where applicable, are noted in the following tables.
Transactions in iMTP Shares for the Funds, where applicable, were as follows:
| | | Year Ended | |
| | | February 29, 2016 | |
| NTX | | | Series | | | Shares | | | Amount | |
| iMTP Shares issued | | | 2018 | | | 14,400 | | $ | 72,000,000 | |
Transactions in MTP Shares for the Funds, where applicable, were as follows:
| | | Year Ended | |
| | | February 29, 2016 | |
| | | | | | | NYSE | | | | | | | |
| NTX | | | Series | | | Ticker | | | Shares | | | Amount | |
| MTP Shares redeemed | | | 2015 | | | NTX PRCCL | | | (7,092,000 | ) | $ | (70,920,000 | ) |
| | | Year Ended | |
| | | February 28, 2017 | |
| NAZ | | | Series | | | Shares | | | Amount | |
| VMTP Shares issued | | | 2019 | | | 883 | | $ | 88,300,000 | |
| VMTP Shares exchanged | | | 2016 | | | (790 | ) | | (79,000,000 | ) |
| Net increase (decrease) | | | | | | 93 | | $ | 9,300,000 | |
| | | | | | | | | | | |
| NUM | | | | | | | | | | |
| VMTP Shares issued | | | 2019 | | | 1,730 | | $ | 173,000,000 | |
| VMTP Shares exchanged | | | 2016 | | | (1,590 | ) | | (159,000,000 | ) |
| Net increase (decrease) | | | | | | 140 | | $ | 14,000,000 | |
5. Investment Transactions
Long-term purchases and sales (including maturities) during the current fiscal period were as follows:
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Purchases | | $ | 44,238,066 | | $ | 114,001,534 | | $ | 49,806,025 | | $ | 30,182,365 | |
| Sales and maturities | | | 34,160,241 | | | 100,727,538 | | | 38,482,885 | | | 20,511,295 | |
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Funds.
Notes to Financial Statements (continued)
As of February 28, 2017, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Cost of investments | | $ | 239,274,248 | | $ | 460,344,437 | | $ | 420,945,626 | | $ | 207,264,842 | |
| Gross unrealized: | | | | | | | | | | | | | |
| Appreciation | | $ | 16,250,544 | | $ | 24,756,233 | | $ | 29,705,183 | | $ | 14,835,751 | |
| Depreciation | | | (4,090,398 | ) | | (3,981,008 | ) | | (5,380,482 | ) | | (910,013 | ) |
| Net unrealized appreciation (depreciation) of investments | | $ | 12,160,146 | | $ | 20,775,225 | | $ | 24,324,701 | | $ | 13,925,738 | |
Permanent differences, primarily due to expiration of capital loss carryforwards, tax basis earnings and profits adjustments, nondeductible reorganization expenses, federal taxes paid, taxable market discount and nondeductible offering costs, resulted in reclassifications among the Funds' components of common share net assets as of February 28, 2017, the Funds' tax year end, as follows:
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Paid-in surplus | | $ | (1,009,446 | ) | $ | (218,978 | ) | $ | (324,645 | ) | $ | (169,035 | ) |
| Undistributed (Over-distribution of) net investment income | | | 166,833 | | | 34,317 | | | 319,044 | | | 88,684 | |
| Accumulated net realized gain (loss) | | | 842,613 | | | 184,661 | | | 5,601 | | | 80,351 | |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2017, the Funds' tax year end, were as follows:
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
Undistributed net tax-exempt income1 | | $ | 380,932 | | $ | 823,546 | | $ | — | | $ | 625,403 | |
Undistributed net ordinary income2 | | | 8,825 | | | — | | | — | | | 5,732 | |
| 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 February 1, 2017, paid on March 1, 2017. |
2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds' tax years ended February 28, 2017 and February 29, 2016, was designated for purposes of the dividends paid deduction as follows:
| 2017 | | | NAZ | | | NUM | | | NUO | | | NTX | |
Distributions from net tax-exempt income3 | | $ | 9,937,919 | | $ | 17,269,481 | | $ | 15,271,572 | | $ | 7,576,347 | |
Distributions from net ordinary income2 | | | 47,492 | | | 12,198 | | | 12,451 | | | 5,014 | |
Distributions from net long-term capital gains4 | | | — | | | 1,290,275 | | | — | | | — | |
| 2016 | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Distributions from net tax-exempt income | | $ | 10,066,290 | | $ | 17,887,009 | | $ | 15,534,992 | | $ | 7,515,079 | |
Distributions from net ordinary income2 | | | — | | | 72,899 | | | 74,088 | | | 324 | |
| Distributions from net long-term capital gains | | | — | | | 97,893 | | | — | | | — | |
2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
3 | The Funds hereby designate these amounts paid during the fiscal year ended February 28, 2017, as Exempt Interest Dividends. |
4 | The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended February 28, 2017. |
As of February 28, 2017, the Funds' tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
| | | | NAZ | | | NUO5 | | | NTX | |
| Expiration: | | | | | | | | | | |
| February 28, 2018 | | $ | 43,720 | | $ | 275,042 | | $ | — | |
| February 28, 2019 | | | — | | | 1,450,805 | | | — | |
| Not subject to expiration | | | 3,032,638 | | | — | | | 3,516,437 | |
| Total | | $ | 3,076,358 | | $ | 1,725,847 | | $ | 3,516,437 | |
5 | A portion of NUO's capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. |
During the Funds' tax year ended February 28, 2017, the following Funds utilized capital loss carryforwards as follows:
| | | | NUM | | | NUO | |
| Utilized capital loss carryforwards | | $ | 84,900 | | $ | 124,337 | |
As of February 28, 2017, the Funds' tax year end, $828,959 of NAZ's capital loss carryforward expired.
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the following fiscal year. The following Funds have elected to defer losses as follows:
| | | | NUM | | | NUO | |
Post-October capital losses6 | | $ | 1,093,175 | | $ | 11,930 | |
Late-year ordinary losses7 | | | — | | | — | |
6 | Capital losses incurred from November 1, 2016 through February 28, 2017, the Funds' tax year end. |
7 | Ordinary losses incurred from January 1, 2017 through February 28, 2017 and/or specified losses incurred from November 1, 2016 through February 28, 2017. |
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund's management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund's management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
For the period March 1, 2016 through July 31, 2016, the annual Fund-level fee, payable monthly, for each Fund was calculated according to the following schedule:
| Average Daily Managed Assets* | | | Fund-Level Fee | |
| For the first $125 million | | | 0.4500 | % |
| For the next $125 million | | | 0.4375 | |
| For the next $250 million | | | 0.4250 | |
| For the next $500 million | | | 0.4125 | |
| For the next $1 billion | | | 0.4000 | |
| For the next $3 billion | | | 0.3875 | |
| For managed assets over $5 billion | | | 0.3750 | |
Effective August 1, 2016, the annual Fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
| Average Daily Managed Assets* | | | Fund-Level Fee | |
| For the first $125 million | | | 0.4500 | % |
| For the next $125 million | | | 0.4375 | |
| For the next $250 million | | | 0.4250 | |
| For the next $500 million | | | 0.4125 | |
| For the next $1 billion | | | 0.4000 | |
| For the next $3 billion | | | 0.3750 | |
| For managed assets over $5 billion | | | 0.3625 | |
Notes to Financial Statements (continued)
The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rated, determined according to the following schedule by the Fund's daily managed assets:
| Complex-Level Managed Asset Breakpoint Level* | Effective 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 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 February 28, 2017, the complex-level fee for each Fund was 0.1617%. |
Other Transactions with Affiliates
Each 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 following Fund engaged in inter-fund trades pursuant to these procedures as follows:
| | | | NAZ | |
| Purchases | | $ | 2,041,841 | |
| Sales | | | 1,979,633 | |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds participated in an unsecured bank line of credit ("Unsecured Credit Line") under which outstanding balances would bear interest at a variable rate. On December 31, 2016, (the only date utilized during the current fiscal period), NTX borrowed $543,636 from the Unsecured Credit Line at an annualized interest rate of 2.02%. None of the other Funds participated in the Unsecured Credit Line during the current fiscal period.
Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser ("Participating Funds"), have established a 364-day, approximately $2.5 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 any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility's annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, along with a number of Nuveen closed-end funds, including all of the Funds covered by this shareholder report. The credit facility expires in July 2017 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 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of "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, none of the Funds utilized this facility.
9. New Accounting Pronouncements
Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2015-03: Interest-Imputation of Interest
The Funds have adopted the disclosure provisions of ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires debt issuance costs to be presented in the Statement of Assets and Liabilities as a direct deduction from the carrying amount of the associated debt liability. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented in the Statement of Assets and Liabilities as a deferred charge (i.e., an asset). ASU 2015-03 is limited to simplifying the presentation of debt issuance costs. ASU 2015-03 does not affect the recognition and measurement of debt issuance costs.
Amendments to Regulation S-X
In October 2016, the Securities and Exchange Commission (SEC) adopted new rules and amended existing rules (together, the "final rules") intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date of the amendments to Regulation S-X is August 1, 2017. Management is still evaluating the impact of the final rules, if any.
Additional Fund Information (Unaudited)
| Board of Trustees | | | | | |
| William Adams IV* | Margo Cook* | Jack B. Evans | William C. Hunter | David J. Kundert | Albin F. Moschner |
| John K. Nelson | William J. Schneider | Judith M. Stockdale | Carole E. Stone | Terence J. Toth | Margaret L. Wolff |
| | | | | | |
* 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 | State Street Bank |
| Chicago, IL 60606 | One Lincoln Street | | 200 East Randolph Drive | & Trust Company |
| | Boston, MA 02111 | | Chicago, IL 60601 | Nuveen Funds |
| | | | | P.O. Box 43071 |
| | | | | Providence, RI 02940-3071 |
| (800) 257-8787 |
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
Nuveen Funds' Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
CEO Certification Disclosure
Each Fund's Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share Repurchases
Each Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock, as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
| | | | NAZ | | | NUM | | | NUO | | | NTX | |
| Common shares repurchased | | | — | | | — | | | — | | | — | |
FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.
Glossary of Terms Used in this Report (Unaudited)
| ■ | 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 investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
| | |
| ■ | Duration: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond fund's value to changes when market interest rates change. Generally, the longer a bond's or fund's duration, the more the price of the bond or fund will change as interest rates change. |
| | |
| ■ | Effective Leverage: Effective leverage is a fund's effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in the fund's portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. |
| | |
| ■ | Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. |
| | |
| ■ | Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
| | |
| ■ | Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. |
| | |
| ■ | Net Asset Value (NAV) Per Share: A fund's Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund's Net Assets divided by its number of shares outstanding. |
| | |
| ■ | Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. |
Glossary of Terms Used in this Report (Unaudited) (continued)
| ■ | Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund's capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940. |
| | |
| ■ | S&P Municipal Bond Indexes Arizona, Michigan, Ohio and Texas: Unleveraged, market value-weighted indexes designed to measure the performance of the tax-exempt, investment-grade municipal bond markets in Arizona, Michigan, Ohio and Texas, respectively. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| | |
| ■ | S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
| | |
| ■ | Total Investment Exposure: Total investment exposure is a fund's assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a fund's use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities. |
| | |
| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
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 Plan
Nuveen 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 as -set 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 imme -diately 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.
Board Members & Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is set at twelve. None of the trustees who are not "interested" persons of the Funds (referred to herein as "independent trustees") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members: | | | | | | |
| | | | | | | | | | |
| ■ | WILLIAM J. SCHNEIDER
1944
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chairman and
Board Member | | 1996
Class III | | Chairman of Miller-Valentine Partners, a real estate investment company; Board Member of WDPR Public Radio station; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; formerly, Board member, Business Advisory Council of the Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council; past Chair and Director, Dayton Development Coalition. | | 181 |
| | | | | | | | | | |
| ■ | JACK B. EVANS
1948
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 1999
Class III | | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; Director, The Gazette Company; Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | | 181 |
| | | | | | | | | | |
| ■ | WILLIAM C. HUNTER
1948
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2003
Class I | | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; past Director (2005- 2015), and past President (2010-2014) Beta Gamma Sigma, Inc., The International Business Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | | 181 |
| | | | | | | | | | |
| ■ | DAVID J. KUNDERT
1942
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2005
Class II | | Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013), retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible; Board member of Milwaukee Repertory Theatre (since 2016). | | 181 |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members (continued): | | | | | | |
| | | | | | | | | | |
| ■ | ALBIN F. MOSCHNER(2)
1952
333 W. Wacker Drive
Chicago, IL 60606 | | Board Member | | 2016
Class III | | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999- 2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions with Zenith Electronics Corporation (1991- 1996). Director, USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions (since 2012); formerly, Director, Wintrust Financial Corporation (1996-2016). | | 181 |
| | | | | | | | | | |
| ■ | JOHN K. NELSON
1962
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2013
Class II | | Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President's Council, Fordham University (since 2010); formerly, senior external advisor to the financial services practice of Deloitte Consulting LLP (2012- 2014): formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets-the Americas (2006-2007), CEO of Wholesale Banking North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading-North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | | 181 |
| | | | | | | | | | |
| ■ | JUDITH M. STOCKDALE
1947
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 1997
Class I | | Board Member, Land Trust Alliance (since 2013) and U.S. Endowment for Forestry and Communities (since 2013); formerly, Executive Director (1994- 2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | | 181 |
| | | | | | | | | | |
| ■ | CAROLE E. STONE
1947
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2007
Class I | | Director, Chicago Board Options Exchange, Inc. (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); Director, CBOE Holdings, Inc.(since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | | 181 |
| | | | | | | | | | |
| ■ | TERENCE J. TOTH
1959
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2008
Class II | | Co-Founding Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010) and Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its Investment Committee; formerly, Director, Legal & General Investment Management America, Inc.(2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007): Executive Vice President, Quantitative Management & Securities Lending (2000- 2004); prior thereto, various positions with Northern Trust Company (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003- 2007) and Northern Trust Hong Kong Board (1997-2004). | | 181 |
Board Members & Officers (Unaudited) (continued)
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed | | Including other | | in Fund Complex |
| | | | | | and Term(1) | | Directorships | | Overseen by |
| | | | | | | | During Past 5 Years | | Board Member |
| | | | | | | | | | |
| Independent Board Members (continued): | | | | | | |
| | | | | | | | | | |
| ■ | MARGARET L. WOLFF
1955
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2016
Class I | | Member of the Board of Directors (since 2013) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005- 2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | | 181 |
| | | | | | | | | | |
| Interested Board Members: | | | | | | |
| | | | | | | | | | |
| ■ | WILLIAM ADAMS IV(3)
1955
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2013
Class II | | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President, Global Structured Products (2010-2016) of Nuveen Investments, Inc.; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President of Nuveen Fund Advisors, LLC (since 2011); Co-Co-President, Global Products and Solutions (since January 2017), formerly, Chief Executive Officer (2016- 2017), formerly, Senior Executive Vice President of Nuveen Securities, LLC; President (since 2011), of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda's Club Chicago; formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010). | | 181 |
| | | | | | | | | | |
| ■ | MARGO L. COOK(2)(3)
1964
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Board Member | | 2016
Class III | | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President of Nuveen Investments, Inc.; Co-President, Global Products and Solutions (since January 2017), formerly, Co-Chief Executive Officer (2015-2016), formerly, Executive Vice President (2013-2015), of Nuveen Securities, LLC; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President (since October 2016), formerly Senior Executive Vice President of Nuveen Fund Advisors, LLC (Executive Vice President since 2011); formerly, Managing Director of Nuveen Commodities Asset Management, LLC (2011-2016); Chartered Financial Analyst. | | 181 |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds: | | | | | | |
| | | | | | | | | | |
| ■ | CEDRIC H. ANTOSIEWICZ
1962
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chief
Administrative
Officer | | 2007 | | Senior Managing Director (since January 2017), formerly, Managing Director (2004-2017) of Nuveen Securities, LLC; Senior Managing Director (since February 2017), formerly, Managing Director (2014-2017) of Nuveen Fund Advisors, LLC. | | 76 |
| | | | | | | | | | |
| ■ | LORNA C. FERGUSON
1945
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 1998 | | Managing Director (since 2004) of Nuveen. | | 182 |
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds (continued): | | | | | | |
| | | | | | | | | | |
| ■ | STEPHEN D. FOY
1954
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President
and Controller | | 1998 | | Managing Director (since 2014), formerly, Senior Vice President (2013- 2014) and Vice President (2005-2013) of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Managing Director (since 2016) of Nuveen Securities, LLC; Certified Public Accountant. | | 182 |
| | | | | | | | | | |
| ■ | NATHANIEL T. JONES
1979
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President
and Treasurer | | 2016 | | Managing Director (since January 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011-2016) of Nuveen.; Chartered Financial Analyst. | | 182 |
| | | | | | | | | | |
| ■ | WALTER M. KELLY
197o
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Chief Compliance
Officer and
Vice President | | 2003 | | Managing Director (since January 2017), formerly, Senior Vice President (2008-2017) of Nuveen. | | 182 |
| | | | | | | | | | |
| ■ | DAVID J. LAMB
1963
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 2015 | | Managing Director (since January 2017), formerly, Senior Vice President of Nuveen Investments Holdings, Inc. (since 2006), Vice President prior to 2006. | | 76 |
| | | | | | | | | | |
| ■ | TINA M. LAZAR
1961
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President | | 2002 | | Managing Director (since January 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | | 182 |
| | | | | | | | | | |
| ■ | KEVIN J. MCCARTHY
1966
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President and
Assistant Secretary | | 2007 | | Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), Secretary (since 2016) and General Counsel (since 2016), formerly, Managing Director and Assistant Secretary of Nuveen Investments, Inc.; Senior Managing Director (since January 2017), formerly, Executive Vice President (2016-2017), formerly, Managing Director (2008-2016), and Assistant Secretary (since 2008) of Nuveen Securities, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), and Secretary (since 2016), formerly, Managing Director (2008-2016) and Assistant Secretary (2007-2016), and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017) and Secretary (since 2016), formerly, Managing Director, Assistant Secretary (2011-2016), and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016- 2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC; Vice President (since 2007) and Secretary (since 2016) of NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010); Vice President (since 2010) and Secretary (since 2016), formerly, Assistant Secretary of Nuveen Commodities Asset Management, LLC. | | 182 |
| | | | | | | | | | |
| ■ | KATHLEEN L. PRUDHOMME
1953
9o1 Marquette Avenue
Minneapolis, MN 554o2 | | Vice President and
Assistant Secretary | | 2011 | | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | | 182 |
Board Members & Officers (Unaudited) (continued)
| | Name, | | Position(s) Held | | Year First | | Principal | | Number |
| | Year of Birth | | with the Funds | | Elected or | | Occupation(s) | | of Portfolios |
| | & Address | | | | Appointed(4) | | During Past 5 Years | | in Fund Complex |
| | | | | | | | | | Overseen |
| | | | | | | | | | by Officer |
| | | | | | | | | | |
| Officers of the Funds (continued): | | | | | | |
| | | | | | | | | | |
| ■ | CHRISTOPHER M. ROHRBACHER
1971
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President and
Assistant Secretary | | 2008 | | Managing Director (since January 2017) of Nuveen Securities, LLC; Managing Director (since January 2017), formerly, Senior Vice President (2016-2017) and Assistant Secretary (since October 2016) of Nuveen Fund Advisors, LLC; Vice President and Assistant Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | | 182 |
| | | | | | | | | | |
| ■ | JOEL T. SLAGER
1978
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President and
Assistant Secretary | | 2013 | | Fund Tax Director for Nuveen Funds (since 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013). | | 182 |
| | | | | | | | | | |
| ■ | GIFFORD R. ZIMMERMAN
1956
333 W. Wacker Drive
Chicago, IL 6o6o6 | | Vice President and
Secretary | | 1988 | | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Vice President (since February 2017), formerly, Managing Director (2003-2017) and Assistant Secretary (since 2003) of Symphony Asset Management LLC; Managing Director and Assistant Secretary (since 2002) of Nuveen Investments Advisers, LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Chartered Financial Analyst. | | 182 |
| (1) | The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. |
| (2) | On June 22, 2016, Ms. Cook and Mr. Moschner were appointed as Board members, effective July 1, 2016. |
| (3) | "Interested person" as defined in the 1940 Act, by reason of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
| (4) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. |
Notes
Notes
Notes
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 equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen helps secure the long-term goals of individual investors and the advisors who serve them, providing access to investment expertise from leading asset managers and solutions across traditional and alternative asset classes. Built on more than a century of industry leadership, Nuveen's teams of experts align with clients' specific financial needs and goals, demonstrating commitment to advisors and investors through market perspectives and wealth management and portfolio advisory services. Nuveen manages $236 billion in assets as of December 31, 2016.
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/cef
| Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com | |
