UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21903
--------------
Nuveen Global Value Opportunities Fund
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
---------------------
Date of fiscal year end: December 31
-------------------
Date of reporting period: December 31, 2006
-----------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT DECEMBER 31, 2006
NUVEEN INVESTMENTS
CLOSED-END
FUNDS
NUVEEN
GLOBAL VALUE
OPPORTUNITIES FUND
JGV
HIGH LEVEL OF
TOTAL RETURN FROM
A DIVERSIFIED GLOBAL PORTFOLIO
PRIMARILY INVESTED IN
EQUITY AND DEBT SECURITIES
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<Table>
WWW.INVESTORDELIVERY.COM OR WWW.NUVEEN.COM/ACCOUNTACCESS
if you get your Nuveen Fund if you get your Nuveen Fund
dividends and statements from dividends and statements directly
your financial advisor or from Nuveen.
brokerage account.
(Be sure to have the address
sheet that accompanied this
report handy. You'll need it to
complete the enrollment process.)
</Table>
NUVEEN LOGO
(TIMOTHY R. SCHWERTFEGER PHOTO)
Timothy R. Schwertfeger
Chairman of the Board
CHAIRMAN'S
LETTER TO SHAREHOLDERS,
Dear Shareholder,
On behalf of all of us at Nuveen Investments, I'd like to use this first
report of the Nuveen Global Value Opportunities Fund (JGV) to welcome the
shareholders of this Fund to our closed-end fund family. I am pleased you
have chosen a Nuveen closed-end fund that is designed to provide you with
a high level of total return from a portfolio positioned to play an
important role in a well-balanced portfolio.
JGV was introduced in late July 2006. As of December 31, 2006, the initial
proceeds from the common share offering had been received and invested in
a diversified portfolio of global debt and equity securities. I look
forward to reporting on this Fund's progress and performance in the next
shareholder report.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can
help you to secure your financial objectives. We are grateful that you
have chosen us as a partner as you pursue your financial goals, and we
look forward to continuing to earn your trust in the months and years
ahead.
Sincerely,
(TIMOTHY R. SCHWERTFEGER SIG)
Timothy R. Schwertfeger
Chairman of the Board
February 15, 2007
Nuveen Investments Closed-End Funds (JGV)
PORTFOLIO MANAGER'S
COMMENTS
The Fund's investment portfolio is managed by Tradewinds Global Investors, LLC.
(Tradewinds), a wholly-owned subsidiary of Nuveen Investments.
David Iben, Chief Investment Officer, Managing Director and Portfolio Manager at
Tradewinds is responsible for the strategy and overall portfolio management of
the Fund. Dave has over 25 years of investment management experience. Here Dave
speaks about the performance of the Fund since its inception in July 2006 to
December 31, 2006.
WHAT WERE THE GENERAL ECONOMIC CONDITIONS AND MARKET TRENDS OVER THE SECOND HALF
OF 2006?
Economic conditions throughout the last six-months of 2006 were generally
favorable as a pronounced slowdown in the housing market was more than offset by
stabilization in interest rates and energy prices combined with low unemployment
and strong consumer confidence. As the second half of the year began, it became
clearer that a pause in the interest rate tightening cycle was at hand. In the
environment, with the Fed on hold, the U.S. stock market marched steadily to a
series of multi-year highs spurred by corporate earnings which continued to come
in above expectations. For the seventh calendar year, value equities were in
favor and significantly outperformed growth stocks. In the global marketplace,
the MSCI EAFE Index(1) ended the year up 26%, the fourth straight year of
double-digit returns and the MSCI All Country, World Index(2) returned 20% for
the year.
WHAT STRATEGIES AND TACTICS DID YOU USE TO MANAGE THE FUND'S ASSETS?
Following its inception in late July 2006, the Fund's initial investment phase
was completed in a timely manner. Approximately 80% of the Fund's assets were
initially invested in equity securities of non-U.S. and U.S. companies across a
broad range of market capitalizations, in accordance with the investment
guidelines outlined at the time of its initial public offering.
The portfolio's holdings include common stocks, preferred stocks with
predominantly equity investment characteristics, convertible securities,
warrants, rights, depositary receipts and real estate investment trusts. In
addition, we've invested the balance of the portfolio in debt securities and
other debt-like instruments of non-U.S. and U.S. corporate and governmental
entities. Over the longer term, the asset mix and global investment exposures
will be actively managed to capitalize on market opportunities and our best
ideas across the various equity and debt markets.
- --------------------------------------------------------------------------------
1 The MSCI EAFE Index(R) is recognized as the pre-eminent benchmark in the
United States to measure international equity performance. It comprises 21
MSCI country indices, representing the developed markets outside of North
America: Europe, Australasia and the Far East.
2 The MSCI All Country World Index is published by Morgan Stanley Capital
International, Inc. It is a free float-adjusted market capitalization index
that is designed to measure global developed and emerging market equity
performance. The index covers 49 developed and emerging market countries.
- --------------------------------------------------------------------------------
4
In an effort to enhance returns, the Fund also opportunistically sold call
options on a portion of the Fund's portfolio of equity securities, on
broad-based securities indices or certain exchange-traded funds.
HOW DID THE FUND PERFORM SINCE INCEPTION THROUGH DECEMBER 31, 2006?
Since Inception Cumulative Total Return on NAV (7/24/06 through 12/31/06)
<Table>
JGV 9.27%
- ----------------------------------------------------------------------------------------------------
Comparative Benchmark(3) 11.44%
- ----------------------------------------------------------------------------------------------------
</Table>
- --------------------------------------------------------------------------------
3 JGV's Benchmark comprised of 1) 80% MSCI All Country World Index 2) 15% Lehman
U.S. Aggregate Bond Index 3) 5% Lehman High Yield Index. The MSCI All Country
World Index is published by Morgan Stanley Capital International, Inc. It is a
free float-adjusted market capitalization index that is designed to measure
global developed and emerging market equity performance. The index covers 49
developed and emerging market countries. The Lehman U.S. Aggregate Index
represents securities that are SEC-registered, taxable and dollar denominated.
The index covers the U.S. investment grade fixed rate bond market, with index
components for government and corporate securities, mortgage pass-through
securities, and asset-backed securities. The Lehman High Yield Index covers
the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK)
bonds, Eurobonds, and debt issues from countries designated as emerging
markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian
and global bonds (SEC registered) of issuers in non-EMG countries are
included. Original issue zeroes, step-up coupon structures and 144-A
securities are also included.
- --------------------------------------------------------------------------------
Past performance does not guarantee future results. Current performance may be
higher or lower than the data shown.
Returns do not reflect the deduction of taxes that a shareholder may have to pay
on Fund distributions or upon the sale of Fund shares. See the Performance
Overview Page for additional information.
Over this abbreviated start-up period, the Fund underperformed its comparative
benchmark. This underperformance was due to several factors, including the fact
that the initial invest-up period for the Fund occurred during a rallying equity
market. Stock selection in the financial sector also proved to be problematic
for us. We were underweight the sector relative to the MSCI All World Index, in
which financial sector stocks performed well. We also held some Japanese
consumer finance companies in the portfolio, which were negatively affected by
industry wide concerns.
Positively contributing to the Fund's performance in the second half of 2006
were our over-weightings to the materials and industrials sectors relative to
the Index. As of December 31, 2006, we believe the Fund is well-positioned and
we look forward to discussing our management strategies and fund performance in
future reports.
5
DISTRIBUTION AND SHARE PRICE
INFORMATION
This Fund has a managed distribution policy designed to provide relatively
stable monthly cash flow to investors. JGV paid four monthly distributions since
its inception in late July 2006, and had one increase in its distribution rate
to $0.1150 per share.
Under its managed distribution policy, the Fund pays monthly distributions that
are derived from a variety of sources for income tax reporting purposes. The
distribution rate may change from time to time, and is expected to roughly
correspond to the total return that could reasonably be expected to be generated
by the Fund over an extended period, based on past and projected future income
and potential returns from the various components of the Fund's integrated
investment strategy. The distributions, for tax purposes, will be comprised of
ordinary income and net realized long-term capital gains, and a portion of the
distributions in some years may constitute a return of capital. There may be
periods during which the distributions exceed the Fund's total return on its
investments.
At the end of the reporting period, the Fund's share price was trading at -3.48%
discount to its NAV.
We are providing you with information regarding your Fund's distributions. This
information is as of December 31, 2006, and likely will vary over time based on
the Fund's investment activities and portfolio investment value changes.
The Fund has a managed distribution program. The goal of a managed distribution
program is to provide shareholders relatively consistent and predictable cash
flow by systematically converting its expected long-term return potential into
regular monthly distributions. As a result, regular distributions throughout the
year will likely include a portion of expected long-term gains (both realized
and unrealized), along with net investment income.
Important points to understand about the managed distribution program are:
- The Fund seeks to establish a relatively stable distribution rate that
roughly corresponds to the projected total return from its investment
strategy over an extended period of time. However, you should not draw any
conclusions about the Fund's past or future investment performance from its
current distribution rate.
- Actual returns will differ from projected long-term returns (and therefore
the Fund's distribution rate), at least over shorter time periods. Over a
specific timeframe, the difference between actual returns and total
distributions will be
6
reflected in an increasing (returns exceed distributions) or a decreasing
(distributions exceed returns) fund net asset value.
- Each month's distributions are expected to be paid from some or all of the
following sources:
- net investment income (regular interest and dividends),
- realized capital gains, and
- unrealized gains, or, in certain cases, a return of principal
(non-taxable distributions)
- A non-taxable distribution is a payment of a portion of the Fund's capital.
When the Fund's returns exceed distributions, it may represent portfolio
gains generated, but not realized as a taxable capital gain. In periods when
the Fund's returns fall short of distributions, it will represent a portion
of your original principal unless the shortfall is offset during other time
periods over the life of your investment (previous or subsequent) when the
fund's total return exceeds distributions.
- Because distribution source estimates are updated monthly during the year,
based on the Fund's performance and forecast for its current fiscal year
(which is the calendar year for the Fund), these estimates may differ from
both the tax information reported to you in your Fund's 1099 statement
provided at year end, as well as the ultimate economic sources of
distributions over the life of your investment.
The following table provides information regarding the Fund's distributions and
total return performance for the fiscal year ended December 31, 2006. The
distribution information is presented on a tax basis rather than on a generally
accepted accounting principles (GAAP) basis. This information is intended to
help you better understand whether the Fund's returns for the specified time
period was sufficient to meet the Fund's distributions.
<Table>
<Caption>
- -------------------------------------------------------------------------------
AS OF 12/31/2006 JGV
- -------------------------------------------------------------------------------
Inception date 7/24/06
Since Inception:
Per share distribution:
From net investment income $0.26
From short-term capital gains $0.15
From long-term capital gains --
From return of capital $0.04
-------
Total per share distribution $0.45
-------
Distribution rate on NAV 2.20%
Cumulative since inception total return on NAV 9.27%
- -------------------------------------------------------------------------------
</Table>
7
Nuveen Global Value Opportunities Fund
JGV
PERFORMANCE
OVERVIEW As of December 31, 2006
(PORTFOLIO ALLOCATION PIE CHART)(2)
<Table>
Common Stocks 79.1%
Corporate Bonds 8.1%
Convertible Bonds 7.9%
Mortgage-Backed Securities 4.9%
</Table>
(2006 MONTHLY DISTRIBUTIONS BAR CHART)
<Table>
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep 0.11
Oct 0.11
Nov 0.11
Dec 0.115
</Table>
(SHARE PRICE CHART)
Past performance is not predictive of future results.
<Table>
7/28/06 20.01
20.00
20.00
20.00
19.99
19.64
19.72
20.00
18.82
18.92
19.24
19.07
19.08
18.87
18.97
19.10
18.38
18.73
18.87
19.12
19.71
19.60
19.42
19.70
12/31/06 19.70
</Table>
FUND SNAPSHOT
<Table>
- --------------------------------------------------------------------------------
Share Price $19.70
- --------------------------------------------------------------------------------
Net Asset Value $20.41
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.48%
- --------------------------------------------------------------------------------
Current Distribution Rate(1) 7.01%
- --------------------------------------------------------------------------------
Net Assets ($000) $395,078
- --------------------------------------------------------------------------------
</Table>
CUMULATIVE TOTAL RETURN
(Inception 7/24/06)
<Table>
<Caption>
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
Since
Inception 0.82% 9.27%
- --------------------------------------------------------------------------------
</Table>
COUNTRIES(2)
<Table>
- --------------------------------------------------------------------------------
United States 62.6%
- --------------------------------------------------------------------------------
Canada 8.3%
- --------------------------------------------------------------------------------
Japan 6.4%
- --------------------------------------------------------------------------------
South Korea 3.9%
- --------------------------------------------------------------------------------
Cayman Islands 3.4%
- --------------------------------------------------------------------------------
South Africa 3.3%
- --------------------------------------------------------------------------------
Taiwan 2.6%
- --------------------------------------------------------------------------------
Papua New Guinea 2.5%
- --------------------------------------------------------------------------------
United Kingdom 2.2%
- --------------------------------------------------------------------------------
Other 4.8%
- --------------------------------------------------------------------------------
</Table>
INDUSTRIES(2)
<Table>
- --------------------------------------------------------------------------------
Metals & Mining 23.8%
- --------------------------------------------------------------------------------
Food Products 7.7%
- --------------------------------------------------------------------------------
Diversified Telecommunication Services 6.7%
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 6.7%
- --------------------------------------------------------------------------------
Machinery 5.6%
- --------------------------------------------------------------------------------
Consumer Finance 5.2%
- --------------------------------------------------------------------------------
Residentials 4.9%
- --------------------------------------------------------------------------------
Health Care Providers & Services 4.4%
- --------------------------------------------------------------------------------
Construction & Engineering 4.0%
- --------------------------------------------------------------------------------
Road & Rail 3.7%
- --------------------------------------------------------------------------------
Electric Utilities 2.9%
- --------------------------------------------------------------------------------
Chemicals 2.4%
- --------------------------------------------------------------------------------
Media 2.2%
- --------------------------------------------------------------------------------
Food & Staples Retailing 2.2%
- --------------------------------------------------------------------------------
Aerospace & Defense 2.2%
- --------------------------------------------------------------------------------
Software 2.1%
- --------------------------------------------------------------------------------
Other 13.3%
- --------------------------------------------------------------------------------
</Table>
1 Current Distribution Rate is based on the Fund's current annualized monthly
distribution divided by the Fund's current market price. The Fund's monthly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a tax return of capital.
2 As a percentage of total investments (excluding securities sold short and
derivative transactions).
8
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
NUVEEN GLOBAL VALUE OPPORTUNITIES FUND
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Nuveen Global Value Opportunities
Fund (the "Fund") at December 31, 2006, and the results of its operations, the
changes in its net assets and the financial highlights for the period July 24,
2006 (commencement of operations) through December 31, 2006, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at December 31, 2006 with the
custodian, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, Illinois
February 28, 2007
9
Nuveen Global Value Opportunities Fund (JGV)
Portfolio of
INVESTMENTS December 31, 2006
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 83.3%
AEROSPACE & DEFENSE - 1.4%
112,600 Thales S.A. $ 5,615,530
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.5%
464,500 Mosaic Company, (1) 9,921,720
- --------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 4.2%
500,000 Shaw Group Inc., (1) 16,750,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 5.5%
334,000 Promise Company Limited, Unsponsored ADR 5,093,500
418,700 Takefuji Corporation 16,571,379
- --------------------------------------------------------------------------------------------------------------------------------
Total Consumer Finance 21,664,879
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 7.1%
553,950 Chunghwa Telecom Co., Ltd., Sponsored ADR 10,929,434
476,200 KT Corporation, Sponsored ADR 12,071,670
200,000 Nippon Telegraph and Telephone Corporation, ADR 4,958,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 27,959,104
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 3.0%
349,900 Centrais Electricas Brasileiras S.A., ADR 3,936,375
84,600 DTE Energy Company 4,095,486
176,800 Korea Electric Power Corporation, Sponsored ADR 4,015,128
- --------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 12,046,989
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 2.3%
254,300 SUPERVALU Inc. 9,091,225
- --------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 7.6%
41,600 Agricore United 429,859
521,900 Smithfield Foods, Inc., (1) 13,391,954
977,600 Tyson Foods, Inc., Class A 16,081,520
- --------------------------------------------------------------------------------------------------------------------------------
Total Food Products 29,903,333
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 4.7%
200,000 Aetna Inc. 8,636,000
365,300 Apria Healthcare Group Inc., (1) 9,735,245
- --------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 18,371,245
-------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.9%
50,000 CDW Corporation 3,516,000
- --------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 5.4%
569,700 AGCO Corporation, (1) 17,626,515
221,960 Tecumseh Products Company, Class B, (1) 3,684,536
- --------------------------------------------------------------------------------------------------------------------------------
Total Machinery 21,311,051
-------------------------------------------------------------------------------------------------------------------
MARINE - 0.0%
22,100 Navios Maritime Holdings Inc. 118,677
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.4%
341,800 Premiere AG, (1) 5,730,153
100,000 Scholastic Corporation, (1) 3,584,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Media 9,314,153
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 23.0%
214,300 Alcoa Inc. 6,431,143
130,000 Alumina Limited, Sponsored ADR 2,587,000
</Table>
10
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
METALS & MINING (continued)
287,600 AngloGold Ashanti Limited, Sponsored ADR $ 13,543,084
900,000 Apex Silver Mines Limited, (1) 14,301,000
467,600 Barrick Gold Corporation 14,355,320
1,901,200 Bema Gold Corporation, (1) 9,981,300
700,000 Ivanhoe Mines Limited, (1) 6,881,000
4,245,000 Lihir Gold Limited, (1) 10,454,468
270,700 Newmont Mining Corporation 12,222,105
- --------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 90,756,420
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 2.0%
303,900 Puget Energy Inc. 7,706,904
- --------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 2.9%
120,000 ChevronTexaco Corporation 8,823,600
50,000 Nexen Inc. 2,750,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 11,573,600
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.0%
13,350 Domtar Inc., (1) 112,674
- --------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 3.9%
166,500 Union Pacific Corporation 15,321,330
- --------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 2.2%
287,600 Microsoft Corporation 8,587,736
- --------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.4%
54,150 Stolt-Nielsen S.A., Sponsored ADR 1,651,034
- --------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 1.9%
263,400 Vodafone Group PLC 7,317,254
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $293,076,069) 328,610,858
===================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY RATINGS (2) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 5.1%
RESIDENTIALS - 5.1%
$ 8,285 Federal Home Loan Mortgage Corporation, 4.740% 1/01/33 AAA $ 8,361,781
Collateralized Mortgage Obligation, Pool 780184
1,857 Federal Home Loan Mortgage Corporation, 4.940% 2/01/33 AAA 1,887,842
Collateralized Mortgage Obligation, Pool 780284
2,969 Federal Home Loan Mortgage Corporation, Pool 5.000% 8/15/25 AAA 339,303
2627 BI (I/O)
319 Federal Home Loan Mortgage Corporation, Pool 4.500% 5/15/18 AAA 74,687
2627 (I/O)
4,461 Federal Home Loan Mortgage Corporation, Pool 4.500% 10/15/12 AAA 157,494
2872 JI (I/O)
1,419 Federal Home Loan Mortgage Corporation, Pool 4.500% 3/15/18 AAA 168,473
2890 (I/O)
1,179 Federal Home Loan Mortgage Corporation, Pool 4.500% 2/15/19 AAA 165,834
2890 (I/O)
166 Federal Home Loan Mortgage Corporation, Pool 5.820% 2/01/32 AAA 166,705
789045
265 Federal National Mortgage Association Mortgage 5.460% 8/20/22 AAA 265,570
Pool 100195
6,858 Federal National Mortgage Association Mortgage 4.500% 4/25/13 AAA 252,592
Pool 2003-86 IL (I/O)
288 Federal National Mortgage Association Mortgage 4.230% 3/01/34 AAA 284,307
Pool 357922
98 Federal National Mortgage Association Mortgage 4.300% 6/01/33 AAA 97,521
Pool 708743
171 Federal National Mortgage Association Mortgage 4.530% 4/01/33 AAA 170,095
Pool 713939
900 Federal National Mortgage Association Mortgage 4.920% 2/01/35 AAA 894,139
Pool 816594
34,104 Federal National Mortgage Association Mortgage 4.500% 5/01/20 AAA 5,402,239
Pool Strips 345-17 (I/O)
1,224 Federal National Mortgage Association, 4.500% 3/25/18 AAA 131,563
Collateralized Mortgage Obligations, Series
2004-75, Class KI (I/O)
2,261 Federal National Mortgage Association, 4.500% 5/25/19 AAA 301,582
Collateralized Mortgage Obligations, Series
2004-86, Class KI (I/O)
5,106 Federal National Mortgage Association, 4.500% 8/25/25 AAA 1,070,719
Collateralized Mortgage Obligations, Series
2005-69, Class PI (I/O)
- ------------------------------------------------------------------------------------------------------------------------------------
71,930 Total Residentials 20,192,446
- ------------------------------------------------------------------------------------------------------------------------------------
$ 71,930 TOTAL MORTGAGE-BACKED SECURITIES (COST 20,192,446
$20,165,228)
====================================================================================================================================
</Table>
11
Nuveen Global Value Opportunities Fund (JGV) (continued)
Portfolio of INVESTMENTS December 31, 2006
<Table>
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY RATINGS (2) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 8.3%
AEROSPACE & DEFENSE - 0.9%
$ 3,500 Edo Corporation, Convertible Note 4.000% 11/15/25 N/R $ 3,386,250
- ------------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 1.5%
6,438 JetBlue Airways Corporation 3.500% 7/15/33 CCC+ 6,212,670
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 1.2%
4,902 Allied Waste Industries Inc., Convertible 4.250% 4/15/34 B+ 4,705,920
Debentures
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.2%
1,000 Quantum Corporation 4.375% 8/01/10 CCC+ 901,250
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.8%
2,989 SCI Systems Inc. 3.000% 3/15/07 B1 2,985,264
- ------------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.5%
2,000 Albany International Corporation, Convertible 2.250% 3/15/26 N/R 1,897,500
Bond
- ------------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 1.5%
6,555 Coeur d'Alene Mines Corporation, Convertible 1.250% 1/15/24 B- 6,227,250
Bond
- ------------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 1.0%
4,000 Peabody Energy Corp., Convertible Bond 4.375% 12/15/66 Ba2 3,835,000
- ------------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.7%
3,000 Credence Systems Corporation, Convertible Bond 1.500% 5/15/08 N/R 2,823,750
- ------------------------------------------------------------------------------------------------------------------------------------
$ 34,384 TOTAL CONVERTIBLE BONDS (COST $31,856,603) 32,974,854
====================================================================================================================================
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY RATINGS (2) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 8.5%
AUTO COMPONENTS - 0.5%
$ 2,000 Lear Corporation, Series B 8.110% 5/15/09 B- $ 2,115,000
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.5%
2,000 Leucadia National Corporation 7.000% 8/15/13 BB 2,040,000
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.0%
3,845 UCAR Finance Inc. 10.250% 2/15/12 B2 4,070,894
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.5%
2,000 Chiquita Brands International Inc., Corporate 8.875% 12/01/15 CCC+ 1,925,000
Bond
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.8%
3,000 Elizabeth Arden Inc. 7.750% 1/15/14 B1 3,037,500
- ------------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.5%
2,000 Phelps Dodge Corporation 7.125% 11/01/27 BBB 1,984,720
- ------------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 3.1%
2,000 Arch Western Finance LLC 6.750% 7/01/13 BB- 1,995,000
2,000 Consol Energy Inc. 7.875% 3/01/12 BB+ 2,120,000
2,000 Peabody Energy Corporation 6.875% 3/15/13 Ba1 2,060,000
2,000 Ship Finance International Limited 8.500% 12/15/13 B+ 2,007,500
2,000 Teekay Shipping Corporation 8.875% 7/15/11 BB- 2,157,500
2,000 USEC Inc. 6.750% 1/20/09 B3 1,950,000
- ------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Oil, Gas & Consumable Fuels 12,290,000
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
12
<Table>
<Caption>
PRINCIPAL
AMOUNT (000) DESCRIPTION COUPON MATURITY RATINGS (2) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 1.6%
$ 2,000 Bowater Inc. 9.500% 10/15/12 B+ $ 2,080,000
4,000 Domtar Inc. 7.875% 10/15/11 B+ 4,170,000
- -----------------------------------------------------------------------------------------------------------------------------------
6,000 Total Paper & Forest Products 6,250,000
- -----------------------------------------------------------------------------------------------------------------------------------
$ 32,845 TOTAL CORPORATE BONDS (COST $32,810,477) 33,713,114
===================================================================================================================================
TOTAL INVESTMENTS (COST $377,908,377) - 105.2% 415,491,272
====================================================================================================================
<Caption>
SHARES DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS SOLD SHORT - (5.0)%
BIOTECHNOLOGY - (0.5)%
(25,000) Genentech, Inc., (1) $ (2,028,250)
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - (0.5)%
(17,000) Alcon Inc. (1,900,090)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - (0.7)%
(74,000) Bankrate Inc., (1) (2,808,300)
- -----------------------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - (0.6)%
(33,000) Kohl's Corporation, (1) (2,258,190)
- -----------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - (1.2)%
(18,000) Allergan Inc. (2,155,320)
(67,200) Merck & Co. Inc. (2,929,920)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals (5,085,240)
--------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - (0.5)%
(17,700) AutoZone Inc., (1) (2,045,412)
- -----------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - (0.7)%
(60,000) Coach, Inc., (1) (2,577,600)
- -----------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - (0.3)%
(18,000) FirstFed Financial Corporation, (1) (1,205,460)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS SOLD SHORT (PROCEEDS (19,908,542)
$18,845,106)
====================================================================================================================
</Table>
13
Nuveen Global Value Opportunities Fund (JGV) (continued)
Portfolio of INVESTMENTS December 31, 2006
<Table>
<Caption>
SHARES DESCRIPTION VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (3) DATE PRICE VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (5.7)% (4)
(1,500) Aetna Inc. $ (5,250,000) 1/20/07 $35.00 $ (1,252,500)
(4,200) AGCO Corporation (10,500,000) 1/20/07 25.00 (2,520,000)
(750) Alcoa Inc. (2,250,000) 1/20/07 30.00 (61,875)
(2,100) Anglogold Limited (10,500,000) 1/20/07 50.00 (78,750)
(7,400) Apex Silver Mines Limited (11,100,000) 4/21/07 15.00 (1,480,000)
(1,800) Apria Healthcare Group (3,600,000) 3/17/07 20.00 (1,242,000)
(1,800) Apria Healthcare Group (4,050,000) 3/17/07 22.50 (837,000)
(3,500) Barrick Gold Corporation (11,375,000) 1/20/07 32.50 (61,250)
(14,200) Bema Gold Corporation (7,100,000) 3/17/07 5.00 (710,000)
(400) CDW Corporation (2,200,000) 1/20/07 55.00 (620,000)
(900) Chevron Corporation (5,850,000) 1/20/07 65.00 (792,000)
(100) Domtar Inc. (50,000) 4/21/07 5.00 (34,500)
(23) DTE Energy Company (92,000) 1/20/07 40.00 (19,550)
(5,000) Ivanhoe Mines Limited (3,750,000) 3/17/07 7.50 (1,275,000)
(2,100) Microsoft Corporation (5,250,000) 1/20/07 25.00 (1,060,500)
(3,400) Mosaic Company (5,950,000) 1/20/07 17.50 (1,411,000)
(900) Newmont Mining Corporation (4,950,000) 1/20/07 55.00 (4,500)
(1,000) Newmont Mining Corporation (4,250,000) 3/17/07 42.50 (410,000)
(400) Nexen Inc. (2,400,000) 3/17/07 60.00 (72,000)
(1,500) Nippon Telegraph & Telephone Corporation (3,750,000) 3/17/07 25.00 (138,750)
(800) Puget Energy Inc. (1,800,000) 1/20/07 22.50 (236,000)
(800) Scholastic Corporation (2,400,000) 3/17/07 30.00 (508,000)
(4,500) Shaw Group Inc. (11,250,000) 1/20/07 25.00 (3,915,000)
(3,900) Smithfield Foods Inc. (11,700,000) 7/21/07 30.00 (214,500)
(1,900) Supervalu Inc. (6,650,000) 4/21/07 35.00 (456,000)
(7,300) Tyson Foods Inc. (10,950,000) 1/20/07 15.00 (1,149,750)
(1,200) Union Pacific Corporation (10,200,000) 1/20/07 85.00 (876,000)
(2,500) Vodafone Group PLC (6,250,000) 4/21/07 25.00 (925,000)
- ---------------------------------------------------------------------------------------------------------------------------------
(75,873) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (165,417,000) (22,361,425)
$14,352,985)
=================================================================================================================================
OTHER ASSETS LESS LIABILITIES - 5.5% 21,856,234
====================================================================================================================
NET ASSETS - 100% $ 395,077,539
====================================================================================================================
</Table>
<Table>
(1) Non-income producing.
(2) Ratings (not covered by the report of independent registered public accounting firm):
Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard &
Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below
investment grade.
(3) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(4) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options.
ADR American Depositary Receipt.
I/O Interest only securities.
N/R Not rated.
</Table>
See accompanying notes to financial statements.
14
Statement of
ASSETS AND LIABILITIES December 31, 2006
<Table>
<Caption>
- ---------------------------------------------------------------------------
ASSETS
Investments, at value (cost $377,908,377) $ 415,491,272
Cash denominated in foreign currencies (cost $58,569) 56,888
Deposits with brokers for securities sold short 21,490,741
Receivables:
Dividends 215,244
Interest 1,364,811
Paydown 121,056
Other assets 229
- ---------------------------------------------------------------------------
Total assets 438,740,241
- ---------------------------------------------------------------------------
LIABILITIES
Securities sold short, at value (proceeds $18,845,106) 19,908,542
Cash overdraft 234,980
Call options written, at value (premiums received
$14,352,985) 22,361,425
Accrued expenses:
Management fees 333,408
Other 798,811
Dividends payable for securities sold short 25,536
- ---------------------------------------------------------------------------
Total liabilities 43,662,702
- ---------------------------------------------------------------------------
Net assets $ 395,077,539
- ---------------------------------------------------------------------------
Shares outstanding 19,355,240
- ---------------------------------------------------------------------------
Net asset value per share outstanding $ 20.41
- ---------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------
Shares, $.01 par value per share $ 193,552
Paid-in surplus 368,038,098
Undistributed (Over-distribution of) net investment income (1,663,416)
Accumulated net realized gain (loss) from investments,
securities sold short and call options written --
Net unrealized appreciation (depreciation) of investments,
securities sold short and call options written 28,509,305
- ---------------------------------------------------------------------------
Net assets $ 395,077,539
- ---------------------------------------------------------------------------
Authorized shares Unlimited
- ---------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
15
Statement of
OPERATIONS
For the Period July 24, 2006 (commencement of operations)
through December 31, 2006
<Table>
<Caption>
- -----------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 1,275,869
Interest 3,627,871
- -----------------------------------------------------------------------------
Total investment income 4,903,740
- -----------------------------------------------------------------------------
EXPENSES
Management fees 1,596,320
Dividend expense on securities sold short 27,336
Shareholders' servicing agent fees and expenses 410
Custodian's fees and expenses 34,007
Trustees' fees and expenses 9,981
Professional fees 33,173
Shareholders' reports - printing and mailing expenses 60,397
Investor relations expense 56,954
Prime broker expense 15,458
Other expenses 3,016
- -----------------------------------------------------------------------------
Total expenses before custodian fee credit 1,837,052
Custodian fee credit (5,894)
- -----------------------------------------------------------------------------
Net expenses 1,831,158
- -----------------------------------------------------------------------------
Net investment income 3,072,582
- -----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments and securities sold short 3,506,736
Foreign currencies 7,220
Call options written (316,307)
Change in net unrealized appreciation (depreciation) of:
Investments and securities sold short 36,519,459
Foreign currencies (1,714)
Call options written (8,008,440)
- -----------------------------------------------------------------------------
Net realized and unrealized gain (loss) 31,706,954
- -----------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $34,779,536
- -----------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
16
Statement of
CHANGES IN NET ASSETS
For the Period July 24, 2006 (commencement of operations)
through December 31, 2006
<Table>
<Caption>
- ---------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,072,582
Net realized gain (loss) from:
Investments and securities sold short 3,506,736
Foreign currencies 7,220
Call options written (316,307)
Change in net unrealized appreciation (depreciation) of:
Investments and securities sold short 36,519,459
Foreign currencies (1,714)
Call options written (8,008,440)
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 34,779,536
- ---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,042,632)
From accumulated net realized gains (2,891,016)
Tax return of capital (679,434)
- ---------------------------------------------------------------------------
Increase (decrease) in net assets from distributions to
shareholders (8,613,082)
- ---------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from sale of shares, net of offering costs 368,811,001
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions 368,811,001
- ---------------------------------------------------------------------------
Net increase (decrease) in net assets 394,977,455
Net assets at the beginning of period 100,084
- ---------------------------------------------------------------------------
Net assets at the end of period $ 395,077,539
- ---------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income
at the end of period $ (1,663,416)
- ---------------------------------------------------------------------------
</Table>
See accompanying notes to financial statements.
17
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
Nuveen Global Value Opportunities Fund (the "Fund") is a diversified, closed-end
management investment company registered under the Investment Company Act of
1940, as amended. The Fund's Common shares are listed on the New York Stock
Exchange and trade under the ticker symbol "JGV." The Fund was organized as a
Massachusetts business trust on May 17, 2006.
Prior to the commencement of operations, the Fund had no operations other than
those related to organizational matters, the initial capital contribution of
$100,084 by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary
of Nuveen Investments, Inc. ("Nuveen"), and the recording of the organization
expenses ($13,500) and their reimbursement by Nuveen Investments, LLC, also a
wholly owned subsidiary of Nuveen.
The Fund seeks to provide a high level of total return primarily by investing in
a diversified global portfolio of equity securities, as well as debt securities
issued by corporate and governmental entities.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with
accounting principles generally accepted in the United States.
Investment Valuation
Exchange-listed securities are generally valued at the last sales price on the
securities exchange on which such securities are primarily traded. Securities
traded on a securities exchange for which there are no transactions on a given
day or securities not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on Nasdaq are valued at the
Nasdaq Official Closing Price. The value of options written are based on the
last sale price in the case of exchange-traded options or, in the case of
options traded in the OTC market, the last asked price. The prices of
fixed-income securities and derivative instruments are generally provided by an
independent pricing service approved by the Fund's Board of Trustees. When price
quotes are not readily available, the pricing service or, in the absence of a
pricing service for a particular investment, the Board of Trustees of the Fund,
or its designee, may establish fair value using a wide variety of market data
including 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 by the pricing service or the Board of
Trustee's designee. If the pricing service is unable to supply a price for a
derivative investment the Fund may use a market quote provided by a major
broker/dealer in such investments. If it is determined that the market price for
an investment is unavailable or inappropriate, the Board of Trustees of the
Fund, or its designee, may establish fair value in accordance with procedures
established in good faith by the Board of Trustees. Short-term investments are
valued at amortized cost, which approximates market value.
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. Investments purchased on a when-issued/delayed delivery
basis may have extended settlement periods. Any investments so purchased are
subject to market fluctuation during this period. The Fund maintains liquid
assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At December 31, 2006, the
Fund had no outstanding when-issued/delayed delivery purchase commitments.
Investment Income
Dividend income on securities purchased and dividend expense on securities sold
short are recorded on the ex-dividend date or, for foreign securities, when
information is available. Interest income, which includes the amortization of
premiums and accretion of discounts for financial reporting purposes, is
recorded on an accrual basis. Interest income also includes paydown gains and
losses, if any.
Federal Income Taxes
The Fund intends to comply with the requirements of Subchapter M of the Internal
Revenue Code applicable to regulated investment companies. The Fund intends to
distribute substantially all of its investment company taxable income to
shareholders. In any year when the Fund realizes net capital gains, the Fund may
choose to distribute all or a portion of its net capital gains to shareholders,
or alternatively, to retain all or a portion of its net capital gains and pay
Federal corporate income taxes on such retained gains.
18
Dividends and Distributions to Common Shareholders
Distributions to Common shareholders are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with Federal
corporate income tax regulations, which may differ from accounting principles
generally accepted in the United States.
The Fund makes monthly cash distributions to Common shareholders of a stated
dollar amount per share. Subject to approval and oversight by the Fund's Board
of Trustees, the Fund seeks to maintain a stable distribution level designed to
deliver the long-term return potential of the Fund's investment strategy through
regular monthly distributions (a "Managed Distribution Policy"). Total
distributions during a calendar year generally will be made from the Fund's net
investment income, net realized capital gains and net unrealized capital gains
in the Fund's portfolio, if any. The portion of distributions paid from net
unrealized gains, if any, would be distributed from the Fund's assets and would
be treated by shareholders as a non-taxable distribution for tax purposes. If
the Fund's total return on net asset value exceeds total distributions during a
calendar year, the excess will be reflected as an increase in net asset value
per share. In the event that total distributions during a calendar year exceed
the Fund's total return on net asset value, the difference will be treated as a
return of capital for tax purposes and will reduce net asset value per share.
The final determination of the source and character of all distributions for the
fiscal year are made after the end of the fiscal year and are reflected in the
accompanying financial statements.
Option Transactions
The Fund is authorized to purchase put options and write (sell) call options.
The purchase of put options involves the risk of loss of all or part of the cash
paid for the options. Put options purchased are accounted for in the same manner
as portfolio securities. During the period July 24, 2006 (commencement of
operations) through December 31, 2006, the Fund did not invest in any put
options.
When the Fund writes a call option, an amount equal to the net premium received
(the premium less commission) is recorded as a liability and is subsequently
adjusted to the current value of the written option until the option expires or
the Fund enters into a closing purchase transaction. When a call option expires
or the Fund enters into a closing purchase transaction, the difference between
the net premium received and any amount paid at expiration or on effecting a
closing purchase transaction, including commission, is treated as a net realized
gain on option contracts written or, if the net premium received is less than
the amount paid, as a net realized loss on option contracts written. The Fund,
as writer of a call option, bears the risk of an unfavorable change in the
market value of the index underlying the written option.
Foreign Currency Translation
To the extent that the Fund invests in securities that are denominated in a
currency other than U.S. dollars, the Fund will be subject to currency risk,
which is the risk that an increase in the U.S. dollar relative to the foreign
currency will reduce returns or portfolio value. Generally, when the U.S. dollar
rises in value against a foreign currency, the Fund's investments in securities
denominated in that currency will lose value because its currency is worth fewer
U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative
value. Investments and other assets and liabilities denominated in foreign
currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the
spot rate prevailing in the foreign currency exchange market at the time of
valuation. Purchases and sales of investments and dividend income denominated in
foreign currencies are translated into U.S. dollars on the respective dates of
such transactions. The gains or losses resulting from changes in foreign
exchange rates on investments and derivative transactions, if any, are included
with Net realized gain (loss) from foreign currencies and Change in net
unrealized appreciation (depreciation) of foreign currencies in the Statement of
Operations.
Foreign Currency Transactions
The Fund is authorized to engage in foreign currency exchange transactions. The
Fund may engage in foreign currency forward, options and futures contracts. To
the extent that the Fund invests in contracts that are denominated in a currency
other than U.S. dollars, the Fund will be subject to currency risk, which is the
risk that an increase in the U.S. dollar relative to the foreign currency will
reduce returns or portfolio value. Generally, when the U.S. dollar rises in
value against a foreign currency, the Fund's investments denominated in that
currency will lose value because its currency is worth fewer U.S. dollars; the
opposite effect occurs if the U.S. dollar falls in relative value. Investments
and other assets and liabilities denominated in foreign currencies are converted
into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the
foreign currency exchange market at the time of valuation. Purchases and sales
of investments and dividend income denominated in foreign currencies are
translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at 4:00 p.m. Eastern time. Investments and income and expenses are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date of the
transactions, foreign currency transactions, and the difference between the
amounts of interest and dividends recorded on the books of a Fund and the
amounts actually received.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Fund's
policy that its custodian take possession of the underlying collateral
securities, the fair value of which exceeds the principal amount of the
repurchase transaction, including accrued interest, at all times. If the seller
defaults, and the fair value of the collateral declines, realization of the
collateral may be delayed or limited.
Custodian Fee Credit
The Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on the Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
19
Notes to
FINANCIAL STATEMENTS (continued)
Organization and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organization expenses
($10,000) and pay all offering costs (other than sales load) that exceed $.04
per share for the Fund. The Fund's share of offering costs ($774,000) was
recorded as a reduction of the proceeds from the sale of shares.
Indemnifications
Under the Fund's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, in the normal course of business, the Fund
enters into contracts that provide general indemnifications to other parties.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
During the period July 24, 2006 (commencement of operations) through December
31, 2006, the Fund sold 19,350,000 Common shares.
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities and proceeds from securities sold
short, but excluding call options written and short-term investments) for the
period July 24, 2006 (commencement of operations) through December 31, 2006,
aggregated $410,014,313 and $53,511,495, respectively.
Transactions in call options written during the period July 24, 2006
(commencement of operations) through December 31, 2006, were as follows:
<Table>
<Caption>
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
- ----------------------------------------------------------------------------------------------------------------------------------
Outstanding, beginning of period -- $ --
Call options written 79,450 14,660,941
Call options terminated in closing purchase transactions (3,577) (307,956)
Call options expired -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Outstanding, end of the period 75,873 $14,352,985
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
4. INCOME TAX INFORMATION
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 the treatment of paydown gains and losses, recognition of
premium amortization, and timing differences in recognizing certain gains and
losses on investment transactions. To the extent that differences arise that are
permanent in nature, such amounts are reclassified within the capital accounts
on the Statement of Assets and Liabilities presented in the annual report, based
on their Federal tax basis treatment; temporary differences do not require
reclassification. Temporary and permanent differences do not impact the net
asset values of the Fund.
At December 31, 2006, the cost of investments (excluding proceeds from
securities sold short and call options written) was $379,571,793.
20
Gross unrealized appreciation and gross unrealized depreciation of investments
(excluding proceeds from securities sold short and call options written) at
December 31, 2006, the Fund's tax year end, were as follows:
<Table>
- -------------------------------------------------------------------------------
Gross unrealized:
Appreciation $40,865,015
Depreciation (4,945,536)
- -------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $35,919,479
- -------------------------------------------------------------------------------
</Table>
The tax components of undistributed net ordinary income and net long-term
capital gains at December 31, 2006, the Fund's tax year end, were as follows:
<Table>
- -------------------------------------------------------------------------------
Undistributed net ordinary income * $--
Undistributed net long-term capital gains --
- -------------------------------------------------------------------------------
</Table>
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
The tax character of distributions paid during the tax period July 24, 2006
(commencement of operations) through December 31, 2006, was designated for
purposes of the dividends paid deduction as follows:
<Table>
- --------------------------------------------------------------------------------
Distributions from net ordinary income * $7,933,648
Distributions from net long-term capital gains ** --
Tax return of capital 679,434
- --------------------------------------------------------------------------------
</Table>
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
** The Fund designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Fund related to net capital gain to zero for the
tax year ended December 31, 2006.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within the Fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is based upon the average daily
Managed Assets of the Fund as follows:
<Table>
<Caption>
AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $500 million .8000%
For the next $500 million .7750
For the next $500 million .7500
For the next $500 million .7250
For Managed Assets over $2 billion .7000
- --------------------------------------------------------------------------------
</Table>
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of December 31, 2006, the complex level fee rate was .1845%.
<Table>
<Caption>
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
- -------------------------------------------------------------------------------
</Table>
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level fee
rate for such complex-wide Managed Assets shall be .1400% until such time as
a different rate or rates is determined.
21
Notes to
FINANCIAL STATEMENTS (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Adviser has entered
into a Sub-Advisory Agreement with Tradewinds NWQ Global Investors, LLC
("Tradewinds"), under which Tradewinds manages the investment portfolio of the
Fund. Nuveen owns a controlling interest in Tradewinds while key management of
Tradewinds owns a non-controlling minority interest. Tradewinds is compensated
for its services to the Fund from the management fee paid to the Adviser.
The Fund pays no compensation directly to those of its Trustees who are
affiliated with the Adviser or to its Officers, all of whom receive remuneration
for their services to the Fund from the Adviser or its affiliates. The Board of
Trustees 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.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculations in the first required financial statement reporting period. As a
result, the Fund must begin to incorporate FIN 48 into its NAV calculation on
June 29, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Fund.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of December 31, 2006, the Fund does not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENT
Distributions to Common Shareholders
The Fund declared a distribution of $.1150 per Common share which was paid on
February 1, 2007, to shareholders of record on January 15, 2007.
22
Financial
HIGHLIGHTS
23
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
<Table>
<Caption>
Investment Operations Less Distributions
Beginning -------------------------------- --------------------------------
Common Net
Share Net Realized/ Net Tax
Net Asset Investment Unrealized Investment Capital Return of
Value Income(a) Gain (Loss) Total Income Gains Capital Total
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended 12/31:
2006(b) $ 19.10 $ .16 $ 1.64 $1.80 $ (.26) $ (.15) $ (.04) $(.45)
- ----------------------------------------------------------------------------------------------------------------------------
<Caption>
Ending
Common
Share Ending
Offering Net Asset Market
Costs Value Value
- ------------------------------------------------------------------
Year Ended 12/31:
2006(b) $ (.04) $ 20.41 $ 19.70
- ------------------------------------------------------------------
</Table>
* Annualized.
** Total Return on Market Value 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. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit.
+ Each ratio includes the effect of the dividend expense on securities sold
short of .02%.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) For the period July 24, 2006 (commencement of operations) through December
31, 2006.
24
<Table>
<Caption>
Ratios/Supplemental Data
--------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Total Returns Before Credit After Credit***
-------------------- ---------------------------- ----------------------------
Based on Ending Net
Based Common Assets
on Share Applicable Net Net Portfolio
Market Net Asset to Common Investment Investment Turnover
Value** Value** Shares (000) Expenses+ Income+ Expenses+ Income+ Rate
- ------------------------------------------------------------------------------------------------------------------
.82% 9.27% $ 395,078 1.12%* 1.87%* 1.12%* 1.87%* 17%
- ------------------------------------------------------------------------------------------------------------------
</Table>
25
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at ten. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members 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.
<Table>
<Caption>
NUMBER OF PORTFOLIOS
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- -------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
- -------------------------------------------------------------------------------------------------------------------------------
Timothy R. Chairman of the 1994 Chairman (since 1996) and Director 172
Schwertfeger(1) Board and Board of Nuveen Investments, Inc., Nuveen
3/28/49 Member Investments, LLC; Chairman and
333 W. Wacker Drive Director (since 1997) of Nuveen
Chicago, IL 60606 Asset Management; Chairman and
Director of Rittenhouse Asset
Management, Inc. (since 1999);
Chairman of Nuveen Investments
Advisers Inc. (since 2002);
formerly, Chairman and Director
(1996-2004) Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); formerly, Director
(1996-2006) of Institutional
Capital Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- -------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management 172
8/22/40 Board member Consultant.
333 W. Wacker Drive
Chicago, IL 60606
- -------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice 172
7/29/34 President of The Northern Trust
333 W. Wacker Drive Company; Director (since 2002)
Chicago, IL 60606 Community Advisory Board for
Highland Park and Highwood, United
Way of the North Shore; Director
(since 2006) of the Michael Rolfe
Pancreatic Cancer Foundation.
- -------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine 172
10/22/48 Foundation, a private philanthropic
333 W. Wacker Drive corporation (since 1996); Director
Chicago, IL 60606 and Vice Chairman, United Fire
Group, a publicly held company;
Adjunct Faculty Member, University
of Iowa; Director, Gazette
Companies; Life Trustee of Coe
College and Iowa College
Foundation; 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.
- -------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean, Tippie College of Business, 172
3/6/48 University of Iowa (since July
333 W. Wacker Drive 2006); formerly, Dean and
Chicago, IL 60606 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);
Director (since 1997), Credit
Research Center at Georgetown
University; Director (since 2004)
of Xerox Corporation; Director,
SS&C Technologies, Inc. (May 2005-
October 2005).
- -------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Director, Northwestern Mutual 170
10/28/42 Wealth Management Company; Retired
333 W. Wacker Drive (since 2004) as Chairman, JPMorgan
Chicago, IL 60606 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; Board
of Regents, Luther College; member
of the Wisconsin Bar Association;
member of Board of Directors,
Friends of Boerner Botanical
Gardens; member of Board of
Directors, Milwaukee Repertory
Theater.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
26
<Table>
<Caption>
NUMBER OF PORTFOLIOS
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- -------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- -------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine 172
9/24/44 Partners Ltd., a real estate
333 W. Wacker Drive investment company; formerly,
Chicago, IL 60606 Senior Partner and Chief Operating
Officer (retired, 2004) of
Miller-Valentine Group; formerly,
Vice President, Miller-Valentine
Realty; Board Member, Chair of the
Finance Committee and member of the
Audit Committee of Premier Health
Partners, the not-for-profit
company of Miami Valley Hospital;
Vice President, Dayton Philharmonic
Orchestra Association; Board
Member, Regional Leaders Forum,
which promotes cooperation on
economic development issues;
Director, Dayton Development
Coalition; formerly, Member,
Community Advisory Board, National
City Bank, Dayton, Ohio and
Business Advisory Council,
Cleveland Federal Reserve Bank.
- -------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and 172
12/29/47 Dorothy Donnelley Foundation (since
333 W. Wacker Drive 1994); prior thereto, Executive
Chicago, IL 60606 Director, Great Lakes Protection
Fund (from 1990 to 1994).
- -------------------------------------------------------------------------------------------------------------------------------
Carole E. Stone Board Member 2007 Director, Chicago Board Options 172
6/28/47 Exchange (since 2006); Chair New
333 West Wacker Drive York Racing Association Oversight
Chicago, IL 60606 Board (since 2005); Commissioner,
New York State Commission on Public
Authority Reform (since 2005);
formerly Director, New York State
Division of the Budget (2000-2004),
Chair, Public Authorities Control
Board (2000-2004) and Director,
Local Government Assistance
Corporation (2000-2004).
- -------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business 172
1/22/50 and Finance, Northwestern
333 W. Wacker Drive University (since 1997); Director
Chicago, IL 60606 (since 2003), Chicago Board Options
Exchange; Chairman (since 1997),
Board of Directors, Rubicon, a pure
captive insurance company owned by
Northwestern University; Director
(since 1997), Evanston Chamber of
Commerce and Evanston Inventure, a
business development organization;
Director (since 2006), Pathways, a
provider of therapy and related
information for physically disabled
infants and young children;
formerly, Director (2003-2006),
National Mentor Holdings, a
privately-held, national provider
of home and community-based
services.
</Table>
27
Board Members
AND OFFICERS (CONTINUED)
<Table>
<Caption>
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- -------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
- -------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), 172
9/9/56 Administrative Assistant Secretary and Associate
333 W. Wacker Drive Officer General Counsel, formerly, Vice
Chicago, IL 60606 President and Assistant General
Counsel, of Nuveen Investments,
LLC; Managing Director (2002-2004),
General Counsel (1998-2004) and
Assistant Secretary, formerly, Vice
President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); Managing Director (since
2002) and Assistant Secretary and
Associate General Counsel,
formerly, Vice President (since
1997), of Nuveen Asset Management;
Managing Director (since 2004) and
Assistant Secretary (since 1994) of
Nuveen Investments, Inc.; Assistant
Secretary of NWQ Investment
Management Company, LLC. (since
2002); Vice President and Assistant
Secretary of Nuveen Investments
Advisers Inc. (since 2002);
Managing Director, Associate
General Counsel and Assistant
Secretary of Rittenhouse Asset
Management, Inc.; Assistant
Secretary of Symphony Asset
Management LLC (since 2003),
Tradewinds NWQ Global Investors,
LLC and Santa Barbara Asset
Management, LLC; (since 2006);
Chartered Financial Analyst.
- -------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), 172
9/22/63 formerly, Vice President (since
333 W. Wacker Drive 2002); formerly, Assistant Vice
Chicago, IL 60606 President (since 2000) of Nuveen
Investments, LLC; Chartered
Financial Analyst.
- -------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), 172
2/3/66 and Assistant formerly, Assistant Vice President
333 W. Wacker Drive Secretary (since 2000) of Nuveen Investments,
Chicago, IL 60606 LLC.
- -------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of 172
11/28/67 Nuveen Investments, LLC and of
333 W. Wacker Drive Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer
of Nuveen Asset Management (since
2002) and of Nuveen Investments
Advisers Inc. (since 2002);
Assistant Treasurer of NWQ
Investment Management Company, LLC.
(since 2002); Vice President and
Treasurer of Nuveen Rittenhouse
Asset Management, Inc. (since
2003); Treasurer of Symphony Asset
Management LLC (since 2003) and
Santa Barbara Asset Management, LLC
(since 2006); Assistant Treasurer,
Tradewinds NWQ Global Investors,
LLC (since 2006); formerly, Vice
President and Treasurer (1999-2004)
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3);
Chartered Financial Analyst.
- -------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of 172
8/24/61 Investment Operations, Nuveen
333 W. Wacker Drive Investments, LLC (since January
Chicago, IL 60606 2005); formerly, Director, Business
Manager, Deutsche Asset Management
(2003- 2004), Director, Business
Development and Transformation,
Deutsche Trust Bank Japan
(2002-2003); previously, Senior
Vice President, Head of Investment
Operations and Systems, Scudder
Investments Japan, (2000-2002),
Senior Vice President, Head of Plan
Administration and Participant
Services, Scudder Investments
(1995-2002).
</Table>
28
<Table>
<Caption>
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- -------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), 172
9/24/64 and Secretary Assistant Secretary and Assistant
333 W. Wacker Drive General Counsel (since 1998)
Chicago, IL 60606 formerly, Assistant Vice President
(since 1998) of Nuveen Investments,
LLC; Vice President (2002-2004) and
Assistant Secretary (1998-2004)
formerly, Assistant Vice President
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3);
Vice President and Assistant
Secretary (since 2005) of Nuveen
Asset Management.
- -------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), 172
10/24/45 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments, LLC, Managing Director
Chicago, IL 60606 (2004) formerly, Vice President
(1998-2004) of Nuveen Advisory
Corp. and Nuveen Institutional
Advisory Corp.(3); Managing
Director (since 2005) of Nuveen
Asset Management.
- -------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), 172
3/2/64 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments, LLC; Managing Director
Chicago, IL 60606 (1997-2004) of Nuveen Advisory
Corp. and Nuveen Institutional
Advisory Corp.(3); Managing
Director (since 2001) of Nuveen
Asset Management; Vice President
(since 2002) of Nuveen Investments
Advisers Inc.; Chartered Financial
Analyst.
- -------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and 172
5/31/54 and Controller Funds Controller (since 1998) of
333 W. Wacker Drive Nuveen Investments, LLC; formerly,
Chicago, IL 60606 Vice President and Funds Controller
(1998-2004) of Nuveen Investments,
Inc.; Certified Public Accountant.
- -------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief Compliance 2003 Vice President and Assistant 172
2/24/70 Officer and Vice Secretary (since 2006) formerly,
333 West Wacker Drive President Assistant Vice President and
Chicago, IL 60606 Assistant General Counsel (since
2003) of Nuveen Investments, LLC;
Vice President (since 2006) and
Assistant Secretary (since 2003)
formerly, Assistant Vice President
of Nuveen Asset Management;
previously, Associate (2001-2003)
at the law firm of Vedder, Price,
Kaufman & Kammholz.
- -------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of 172
3/22/63 Nuveen Investments, LLC; Certified
333 W. Wacker Drive Public Accountant.
Chicago, IL 60606
- -------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen 172
8/27/61 Investments, LLC (since 1999).
333 W. Wacker Drive
Chicago, IL 60606
</Table>
29
Board Members
AND OFFICERS (CONTINUED)
<Table>
<Caption>
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
- -------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary 172
7/27/51 and Assistant and Assistant General Counsel of
333 W. Wacker Drive Secretary Nuveen Investments, LLC; formerly,
Chicago, IL 60606 Vice President and Assistant
Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); Vice President (since
2005) and Assistant Secretary of
Nuveen Investments, Inc.; Vice
President (since 2005) and
Assistant Secretary (since 1997) of
Nuveen Asset Management; Vice
President (since 2000), Assistant
Secretary and Assistant General
Counsel (since 1998) of Rittenhouse
Asset Management, Inc.; Vice
President and Assistant Secretary
of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary
of NWQ Investment Management
Company, LLC (since 2002), Symphony
Asset Management LLC (since 2003)
and Tradewinds NWQ Global
Investors, LLC and Santa Barbara
Asset Management, LLC (since 2006).
</Table>
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member of
the Adviser.
(2) Board members serve a three year term until his/her successor is elected.
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.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July 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.
30
Annual Investment
MANAGEMENT AGREEMENT APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment advisers to the Fund and determining whether to approve the advisory
arrangements. At a meeting held on May 23-25, 2006, the Board of Trustees of the
Fund, including the independent Trustees, unanimously approved the Investment
Management Agreement between the Fund and NAM and the Investment Sub-Advisory
Agreement between NAM and Tradewinds, subject to further approval of the
sub-advisory fees. At a meeting held on July 20, 2006, the independent Trustees
approved the sub-advisory fees. Accordingly, Tradewinds will be the
"Sub-Adviser" to the Fund and together with NAM, a "Fund Adviser." The
Investment Management Agreement and Investment Sub-Advisory Agreement are each
an "Advisory Agreement."
THE APPROVAL PROCESS
In connection with its consideration of the renewal of other advisory contracts
with the respective Fund Adviser for other Nuveen funds and in connection with
its consideration for approval of the Advisory Agreements for the Fund, the
Board received a wide variety of materials which outlined, among other things:
- the nature, extent and quality of services currently provided by the Fund
Adviser to other Nuveen Funds and expected to be provided to the Fund;
- the organization and business operations of the Fund Adviser, including
the responsibilities of various departments and key personnel;
- the historical performance record of other Nuveen Funds advised by the
Fund Adviser;
- the profitability of Nuveen (which incorporated Nuveen's wholly-owned
subsidiaries, including Tradewinds);
- the expenses of NAM in providing the various services;
- the proposed management fees of NAM, including comparisons with the
management fees of comparable, unaffiliated funds as well as comparable
Nuveen closed-end funds;
- the fees NAM assesses to other types of investment products or accounts;
- the soft dollar practices of the Fund Adviser, if any; and
- from independent legal counsel, a legal memorandum describing, among other
things, the duties of the Trustees under the Investment Company Act of
1940 (the "1940 Act") as well as the general principles of relevant state
law in reviewing and approving advisory contracts; the requirements of the
1940 Act in such matters; an adviser's fiduciary duty with respect to
advisory agreements and compensation; the standards used by courts in
determining whether investment company boards of directors have fulfilled
their duties and factors to be considered by the board in voting on
advisory agreements.
At the meeting, the proposed portfolio manager of the Fund, on behalf of
Tradewinds, made a presentation and responded to questions from the Board. A
representative from NAM also responded to questions from the Board regarding the
Fund. After the presentations and after reviewing the written materials, the
independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts. It is with this background that
the Trustees considered each Advisory Agreement (which includes the Sub-Advisory
Agreement) with the Fund Adviser. The independent Trustees, in consultation with
independent counsel, reviewed the factors set out in judicial decisions and SEC
directives relating to the approval of advisory contracts. As outlined in more
detail below, the Trustees considered all factors they believed relevant with
respect to each Fund, including the following: (a) the nature, extent and
quality of the services to be provided by the Fund Adviser; (b) the investment
performance of the Fund and the Fund Adviser; (c) the costs of the services to
be provided and profits to be realized by the Fund Adviser and its affiliates
from the relationship with the Fund; (d) the extent to which economies of scale
would be realized; and (e) whether fee levels reflect these economies of scale
for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the Fund Advisers, the Trustees considered the nature, extent and
quality of the respective Fund Adviser's proposed services. The Trustees
reviewed materials outlining, among other things, the Fund Adviser's
organization and business; the types of services that the Fund Adviser or its
affiliates provide to other Nuveen funds (and are expected to provide to the
Fund); and the performance record of other Nuveen funds advised by the
respective Fund Adviser. In addition, in connection with their continued service
as Trustees of other Nuveen funds advised by the respective Fund Adviser as well
as through a site visit with Tradewinds in early 2006, the Trustees are familiar
with the operations, capabilities and investment personnel of each Fund Adviser.
Further, in connection with the renewal of other sub-advisory contracts with
Tradewinds for other Nuveen funds, the Trustees also received and reviewed an
evaluation of Tradewinds from NAM. Such evaluation outlined, among other things,
the Sub-Adviser's organizational history, client base, product mix, investment
team and any changes thereto, investment process and performance (as
31
Annual Investment
MANAGEMENT AGREEMENT APPROVAL PROCESS (continued)
applicable). Accordingly, the Trustees had considered the quality of services
that Tradewinds has provided for other Nuveen Funds and could be expected to be
provided for the Fund.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. With respect to
Tradewinds, the independent Trustees noted that the Sub-Advisory Agreement was
essentially an agreement for portfolio management services only and Tradewinds
was not expected to supply other significant administrative services to the
Fund.
With respect to NAM, similar to other Nuveen funds, NAM is expected to provide
the Fund with such administrative and other services (exclusive of, and in
addition to, any such services provided by others for the Fund) and officers and
other personnel as are necessary for the operations of the Fund. In addition to
investment advisory services, NAM and its affiliates are expected to provide the
Fund with a wide range of services including: product management (e.g., product
positioning, performance benchmarking, risk management); fund administration
(e.g., tax reporting, fulfilling regulatory filing requirements); oversight of
third party service providers; administration of board relations (e.g.,
organizing board meetings and preparing related materials); compliance (e.g.,
monitoring compliance with investment policies and guidelines and regulatory
requirements); and legal support (e.g., helping prepare and file registration
statements, amendments thereto, proxy statements and responding to regulatory
requests and/or inquiries). In addition, as the Fund will operate in a highly
regulated industry and given the importance of compliance, the Trustees
considered, in particular, the additions of experienced personnel to the
compliance teams and the enhancements to technology and related systems to
support the compliance activities for the Nuveen funds, including the Fund. In
addition to the above, because the Fund will use Tradewinds as a sub-adviser,
the Trustees also considered NAM's ability and procedures to monitor Tradewinds'
performance, business practices and compliance policies and procedures.
In addition to the foregoing, the Trustees also noted the additional services
that NAM or its affiliates provide to Nuveen closed-end funds, including, in
particular, secondary market support activities, and that can be expected to be
provided on behalf of the Fund. The Trustees have recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of initiatives designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
providing advertising and other media relations programs, continued contact with
analysts, maintaining and enhancing its website for closed-end funds, and
targeted advisor communication programs. As noted above, given the Trustees'
experience with Nuveen funds through their continued service as Trustees, the
Trustees are familiar with the quality of services provided by NAM and expected
to be provided for the Fund.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services expected to be provided to the Fund under the Investment
Management Agreement or Sub-Advisory Agreement, as applicable, were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISERS
As the Fund is new and does not have performance history of its own, the Board
reviewed performance information regarding the Fund Adviser's (or its
predecessor's) past performance record with other applicable Nuveen funds.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that the Fund is expected to
bear, the Board reviewed, among other things, the Fund's proposed management
fee to NAM, the Fund's expected expense ratios (including, at differing
levels of leverage), as well as comparisons with the advisory fees of
comparable, unaffiliated closed-end funds and comparable Nuveen closed-end
funds. In addition, the Trustees considered the fund-level and complex-wide
breakpoint schedules (described in further detail below). While the Board
considered the maximum advisory fee, it was noted that Tradewind's
sub-advisory fee was still being determined and therefore would be considered
at a subsequent meeting. Accordingly, at a meeting held on July 20, 2006, the
Trustees reviewed the proposed sub-advisory fee to Tradewinds as well as the
sub-advisory fees paid to other sub-advisers of Nuveen funds. The Trustees
recognized that the level of the sub-advisory fee would not change the
overall management fee paid by the Fund. The independent Trustees unanimously
approved the Sub-Advisory Agreement, including the fees.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of NAM with
fees NAM charges to other clients (such as separate managed accounts and fees
charged on funds that are not offered by Nuveen Investments but are
sub-advised by one of Nuveen's investment management teams). In general, the
advisory fees charged for separate accounts are somewhat lower than the
advisory fees assessed to the Funds. The Trustees recognized that the
differences in fees are attributable to a variety of factors, including the
differences in services provided, product distribution, portfolio investment
policies, investor profiles, account
32
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services to be provided to the Fund is more extensive than that
provided to managed separate accounts. As described in further detail above,
such additional services include, but are not limited to, providing: product
management, fund administration, oversight of third party service providers,
administration of board relations, and legal support. Further, the Fund will
operate in a highly regulated industry requiring extensive compliance
functions compared to the other investment products. Given the differences in
the product structures, particularly the extensive services provided to
closed-end funds, the Trustees believe such facts justify the different
levels of fees.
3. PROFITABILITY OF FUND ADVISERS
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned sub-advisers). At the meeting the Trustees
had reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under management
prepared by Nuveen. The Trustees further reviewed the 2005 Annual Report for
Nuveen Investments. In considering profitability, the Trustees recognized the
inherent limitations in determining profitability as well as the difficulties
in comparing the profitability of other unaffiliated advisers. Profitability
may be affected by numerous factors, including the methodology for allocating
expenses, the advisor's business mix, the types of funds managed, the
adviser's capital structure and cost of capital. Further, individual fund or
product line profitability of other sponsors is generally not publicly
available. Accordingly, the profitability information that is publicly
available from various investment advisory or management firms may not be
representative of the industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees had noted that Nuveen's profitability is enhanced due to its efficient
internal business model. Further, the Trustees noted that the proposed advisory
fees were within an acceptable range compared to its peers. Based on their
review, the Trustees were satisfied that Nuveen's level of profitability was
reasonable in light of the services to be provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to a Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Fund, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the Fund, the Trustees
determined that the NAM advisory fees and expected expenses of the Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Trustees have
reviewed and considered the breakpoints in the advisory fee schedule depending
on the Fund's size. In addition to advisory fee breakpoint schedule, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Fund, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Trustees had considered, among
other things, the historic and expected fee savings to shareholders as assets
grow, the amount of fee reductions at various asset levels, and that the
arrangement would extend to all funds in the Nuveen complex. The Trustees also
considered the impact, if any, the complex-wide fee arrangement may have on the
level of services provided. Based on their review, the Trustees concluded that
the breakpoint schedule and complex-wide fee arrangement currently was
acceptable and desirable in providing benefits from economies of scale to
shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of NAM for serving as agent at Nuveen's preferred trading
desk and for serving as a co-manager in the initial public offering of new
closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that NAM does not currently have any soft dollar arrangements and
does not pay excess brokerage commissions (or spreads on principal transactions)
in order to receive research services; however, NAM may from time to time
receive and have access to research generally provided to institutional clients.
With respect to Tradewinds, Tradewinds may receive research from brokers that
execute the Fund's portfolio transactions and therefore may benefit from these
arrangements.
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreement were
fair and reasonable, that NAM's management fees are reasonable in light of the
services provided to each Fund, and that the Investment Management Agreement
should be approved. In addition, the Trustees, including a majority of the
independent Trustees, determined to approve the Investment Sub-Advisory
Agreement, subject to further approval of the sub-advisory fees. The independent
Trustees subsequently approved the Sub-Advisory Agreement with its fees.
33
Reinvest Automatically
EASILY AND CONVENIENTLY
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains 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.
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 dividends and 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
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO
SET UP YOUR REINVESTMENT ACCOUNT.
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market, however, if shares begin trading at or above net
asset value during the purchase period, the Fund will issue new shares at the
greater of the net asset value of 95% of the then current market price.
Dividends and distributions received to purchase shares in the open market will
normally be invested shortly after the dividend payment date. No interest will
be paid on dividends and 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 dividend or
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. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
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 DIVIDENDS AND/OR 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.
34
OTHER USEFUL
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
The Fund's (i) quarterly portfolio of investments and (ii) a description of the
policies and procedures that the Fund uses to determine how to vote proxies
relating to portfolio securities are available without charge, upon request, by
calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com. Information regarding how the Fund voted proxies relating to
portfolio securities held during the 12-month period ending June 30, 2007 will
be available in July, 2007.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. 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 at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
Reference Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
The Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
The Fund has filed with the Securities and Exchange Commission the certification
of its Chief Executive Officer and Chief Financial Officer required by Section
302 of the Sarbanes-Oxley Act.
DISTRIBUTION INFORMATION
Nuveen Global Value Opportunities Fund (JGV) designates 8.35% of dividends
declared from net investment income as dividends qualifying for the 70%
dividends received deduction for corporations and 8.71% as qualified dividend
income for individuals under the Jobs and Growth Tax Relief Reconciliation Act
of 2003.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
MARKET YIELD: Market yield is based on the Fund's current annualized monthly
distribution divided by the Fund's current market price. The Fund's monthly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Funds'
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a tax return of capital.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares issued
in order to leverage the Fund) from its total assets and then dividing the
remainder by the number of shares outstanding. Fund NAVs are calculated at the
end of each business day.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
Chicago, IL
35
(back cover photo)
NUVEEN INVESTMENTS:
SERVING INVESTORS
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past
century, Nuveen Investments has adhered to the belief that the best
approach to investing is to apply conservative risk-management principles
to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity
and fixed-income solutions that are integral to a well-diversified core
portfolio. Our clients have come to appreciate this diversity, as well as
our continued adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT
NEEDS.
Managing $162 billion in assets, as of December 31, 2006, Nuveen
Investments offers access to a number of different asset classes and
investing solutions through a variety of products. Nuveen Investments
markets its capabilities under six distinct brands: Nuveen, a leader in
fixed-income investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; Symphony, a leading
institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds
NWQ, a leader in global equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers,
talk to your financial advisor, or call us at (800) 257-8787. Please read
the information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should
consider the investment objective and policies, risk considerations,
charges and expenses of the Fund carefully before investing. The
prospectus contains this and other information relevant to an investment
in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 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
- Share prices
- Fund details
- Daily financial news
- Investor education
- Interactive planning tools
EAN-H-1206D
NUVEEN LOGO
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. [There were no amendments to or waivers
from the Code during the period covered by this report.] The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Global Value Opportunities Fund
The following tables show the amount of fees that PricewaterhouseCoopers, the
Fund's auditor, billed to the Fund during the Fund's last two full fiscal years.
For engagements with PricewaterhouseCoopers the Audit Committee approved in
advance all audit services and non-audit services that PricewaterhouseCoopers
provided to the Fund, except for those non-audit services that were subject to
the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval
exception"). The pre-approval exception for services provided directly to the
Fund waives the pre-approval requirement for services other than audit, review
or attest services if: (A) the aggregate amount of all such services provided
constitutes no more than 5% of the total amount of revenues paid by the Fund to
its accountant during the fiscal year in which the services are provided; (B)
the Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND(1) BILLED TO FUND(2) BILLED TO FUND(3) BILLED TO FUND(4)
- --------------------------------------------------------------------------------------------------------------------
December 31, 2006 $ 32,000 $ 0 $ 0 $ 0
- --------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- --------------------------------------------------------------------------------------------------------------------
December 31, 2005 N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- --------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to PricewaterhouseCoopers by the Fund, the Adviser and Affiliated
Fund Service Providers during the fiscal year in which the services are provided
that would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS(1) SERVICE PROVIDERS
- -----------------------------------------------------------------------------------------------------------
December 31, 2006 $ 0 $ 2,450 $ 0
- -----------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- -----------------------------------------------------------------------------------------------------------
December 31, 2005 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- -----------------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation for the
Fund's tax return, the cost of which is borne by the Adviser. In the aggregate,
for all Nuveen funds for which Pricewaterhouse Coopers serves as independent
registered public accounting firm, these fees amounted to $140,700 in 2006 and
$121,500 in 2005.
NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that PricewaterhouseCoopers provides
to the Adviser and any Affiliated Fund Services Provider, if the engagement
related directly to the Fund's operations and financial reporting (except for
those subject to the de minimis exception described above). The Audit Committee
requested and received information from PricewaterhouseCoopers about any
non-audit services that PricewaterhouseCoopers rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating PricewaterhouseCoopers
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
- ------------------------------------------------------------------------------------------------------------------------
December 31, 2006 $ 0 $ 2,450 $ 0 $ 2,450
December 31, 2005 N/A N/A N/A N/A
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Tradewinds Global Investors, LLC, formerly known as
Tradewinds NWQ Global Investors, LLC, ("Tradewinds") as Sub-Adviser to provide
discretionary investment advisory services. As part of these services, the
Adviser has also delegated to the Sub-Adviser the full responsibility for proxy
voting and related duties in accordance with the Sub-Adviser's policy and
procedures. The Adviser periodically will monitor the Sub-Adviser's voting to
ensure that they are carrying out their duties. The Sub-Adviser's proxy voting
policies and procedures are summarized as follows:
Tradewinds' Proxy Voting Policies and Procedures apply to securities held in
client accounts over which Tradewinds has voting authority. Tradewinds' Proxy
Voting Policy seeks to ensure that proxies for which Tradewinds has ultimate
voting authority are voted consistently and solely in the best economic
interests of the beneficiaries of these equity investments. In addition,
Tradewinds may determine not to vote proxies relating to certain securities if
Tradewinds determines it would be in its clients' overall best interests not to
vote, such as when Tradewinds is in the process of selling the securities, or
the securities are foreign securities subject to share blocking (short-term
prohibitions on selling after voting). If a client requests Tradewinds to
follow specific voting guidelines, Tradewinds will review the request and
inform the client only if Tradewinds is not able to follow the client's request.
The Proxy Voting Committee is responsible for oversight of the proxy voting
process. Tradewinds has engaged the services of Institutional Shareholder
Services, Inc. ("ISS") to make recommendations to Tradewinds on the voting
of proxies for securities held in its clients' accounts. Tradewinds reviews
and frequently follows ISS recommendations. However, Tradewinds may not vote
in accordance with the ISS recommendations when Tradewinds believes an ISS
recommendation is not in the best economic interest of clients. Specifically,
Tradewinds will usually vote against any proposals for granting employees stock
options, and if ISS or Tradewinds does not receive information about the proxy
vote in time to research the proxy issues, Tradewinds will vote no on all such
issues.
If Tradewinds is faced with a material conflict of interest in voting a proxy,
such as when it manages the assets of a company or its pension plan and any of
Tradewinds' clients hold any securities of that company, Tradewinds will vote
proxies relating to such company's securities in accordance with the ISS
recommendations to avoid any conflict of interest.
Tradewinds shall retain required records relating to the voting of proxies and
shall provide a client with information on how Tradewinds voted proxies on
behalf of the client as requested.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Tradewinds as sub-adviser of the registrant's
investments. (Tradewinds is also referred to as "Sub-Adviser".) Tradewinds, as
Sub-Adviser, provides discretionary investment advisory services. The following
section provides information on the portfolio managers at the Sub-Adviser:
Item 8 (a)(1). PORTFOLIO MANAGER BIOGRAPHY:
DAVID IBEN, Prior to joining NWQ in 2000, and forming the affiliate Tradewinds,
Mr. Iben was lead Portfolio Manager, CEO, and a founding member of Palladian
Capital Management. Before launching Palladian, he worked at Cramblit & Carney,
Inc. managing large institutional accounts. Formerly, he was acting CIO at the
Farmers Group, responsible for $16 billion of investable assets before his
departure in 1996.
Item 8 (a)(2). Other Accounts Managed
<Table>
<Caption>
David Iben
(a) RICs
Number of accts 5
Assets ($000s) $710,171
(b) Other pooled accts
Non-performance fee accts
Number of accts 3
Assets ($000s) $432,045
(c) Other
Non-performance fee accts
Number of accts 6,418
Assets ($000s) $6,018,108
Performance fee accts
Number of accts 3
Assets ($000s) $2,009,414
</Table>
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise when a portfolio manager has
day-to-day management responsibilities with respect to more than one account.
More specifically, portfolio managers who manage multiple accounts are presented
with the following potential conflicts:
- The management of multiple accounts may result in a portfolio
manager devoting unequal time and attention to the management
of each account. Tradewinds seeks to manage such competing
interests for the time and attention of portfolio managers by
having portfolio managers focus on a particular investment
discipline. Most accounts managed by a portfolio manager in a
particular investment strategy are managed using the same
investment models.
- If a portfolio manager identifies a limited investment
opportunity which may be suitable for more than one account,
an account may not be able to take full advantage of that
opportunity due to an allocation of filled purchase or sale
orders across all eligible accounts. To deal with these
situations, Tradewinds has adopted procedures for allocating
portfolio transactions across multiple accounts.
- With respect to many of its clients' accounts, Tradewinds
determines which broker to use to execute transaction orders,
consistent with its duty to seek best execution of the
transaction. However, with respect to certain other accounts,
Tradewinds may be limited by the client with respect to the
selection of brokers or may be instructed to direct trades
through a particular broker. In these cases, Tradewinds may
place separate, non-simultaneous, transactions for a Fund and
other accounts which may temporarily affect the market price
of the security or the execution of the transactions, or both,
to the detriment of the Fund or the other accounts.
- The Fund is subject to different regulation than other pooled
investment vehicles and other accounts managed by the
portfolio managers. As a consequence of this difference in
regulatory requirements, the Fund may not be permitted to
engage in all the investment techniques or transactions or to
engage in these transactions to the same extent as the other
accounts managed by the portfolio managers. Finally, the
appearance of a conflict of interest may arise where
Tradewinds has an incentive, such as a performance-based
management fee, which relates to the management of some
accounts, with respect to which a portfolio manager has
day-to-day management responsibilities.
Tradewinds has adopted certain compliance procedures which are designed to
address these types of conflicts common among investment managers. However,
there is no guarantee that such procedures will detect each and every situation
in which a conflict arises.
ITEM 8 (a)(3). Fund Manager Compensation
Tradewinds 's portfolio managers participate in a highly competitive
compensation structure with the purpose of attracting and retaining the most
talented investment professionals and rewarding them through a total
compensation program as determined by the firm's executive committee. The total
compensation program consists of both a base salary and an annual bonus that can
be a multiple of the base salary. The portfolio manager's performance is
formally evaluated annually and based on a variety of factors. Bonus
compensation is primarily a function of the firm's overall annual profitability
and the individual portfolio manager's contribution as measured by the overall
investment performance of client portfolios in the strategy they manage relative
to the strategy's general benchmark for one, three and five year periods (as
applicable), as well as an objective review of stock recommendations and the
quality of primary research, and subjective review of the professional's
contributions to portfolio strategy, teamwork, collaboration and work ethic.
The total compensation package includes availability of equity-like incentive
for purchase (whose value is determined by the increase in profitability of
Tradewinds over time) made to most investment professionals. Additional, the
portfolio managers have been provided compensation in conjunction with signing
long-term employment agreements. Tradewinds is a subsidiary of Nuveen
Investments, Inc., which has augmented this incentive compensation annually
through individual awards of a stock option pool, as determined through a
collaborative process between Nuveen Investments and the Tradewinds executive
committee.
ITEM 8 (a)(4). OWNERSHIP OF JGV SECURITIES AS OF DECEMBER 31, 2006.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------
NAME OF
PORTFOLIO $1- $10,001- $50,001- $100,001 $500,001 OVER
MANAGER NONE $10,000 $50,000 $100,000 $500,000- $100,000,000 $1,000,000
- ------------------------------------------------------------------------------------------------
David Iben X
- ------------------------------------------------------------------------------------------------
</Table>
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of this report that
includes the disclosure required by this paragraph, based on their
evaluation of the controls and procedures required by Rule 30a-3(b)
under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or
15d-15(b) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Global Value Opportunities Fund
-------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: March 9, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: March 9, 2007
By (Signature and Title)* /s/ Stephen D. Foy
------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: March 9, 2007
* Print the name and title of each signing officer under his or her signature.