Nuveen Investment Trust
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 811-07619
Nuveen Investment Trust
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312 917-7700)
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Date of fiscal year end: June 30th
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Date of reporting period: June 30th
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Form N-CSR is to be use by management investment companies to file reports with
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any report that is required to be transmitted to stockholders under Rule 30c-1
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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.
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Nuveen Investments
Value and Balanced Funds
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Annual Report dated June 30, 2003
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For investors seeking long-term growth potential.
[GRAPHIC]
Nuveen NWQ Multi-Cap Value Fund
Nuveen Large-Cap Value Fund
Nuveen Balanced Municipal and Stock Fund
Nuveen Balanced Stock and Bond Fund
[LOGO] Nuveen Investments
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Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
[PHOTO]
Timothy R. Schwertfeger
"No one knows
what the future
will bring, which
is why we think
a well-balanced
portfolio ... is
an important
component in
achieving your
long-term
financial goals."
Dear Shareholder,
Throughout most of the period covered by this report, your Fund faced an
extremely difficult market. Detailed information on your Fund's performance can
be found in the Portfolio Managers' Comments and Fund spotlight sections of
this report. The value funds feature portfolio management by NWQ Investment
Management Company, LLC (NWQ) and Institutional Capital Corporation (ICAP),
while the balanced funds are sub-advised by ICAP, with Nuveen Institutional
Advisory Corp. managing the municipal portion of the Nuveen Balanced Municipal
and Stock Fund. I urge you to take the time to read the portfolio managers'
comments.
With the recent volatility in the market, many investors have begun to wonder
which way the market is headed, and whether they need to adjust their
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the
help of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Fund can be important building blocks in a portfolio crafted to perform
well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this
report, which explains the quick and easy process to begin receiving Fund
reports like this via e-mail and the internet. Thousands of Nuveen Fund
shareholders already have signed-up, and they are getting their Fund
information faster and more conveniently than ever. I urge you to consider
joining them.
Since 1898, Nuveen Investments has offered financial products and solutions
that incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen
us as a partner as you pursue your financial goals. We look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 15, 2003
Annual Report l Page 1
Portfolio Manager's Comments for the Nuveen NWQ Multi-Cap Value Fund
Effective after the close of business on December 6, 2002, the Nuveen NWQ
Multi-Cap Value Fund acquired the assets and performance history of the PBHG
Special Equity Fund. The Nuveen NWQ Multi-Cap Value Fund commenced operations
on Monday, December 9, 2002.
Despite the change in name, the Fund utilizes the same portfolio manager and
investment strategy that was employed previously. The Fund continues to be
subadvised by NWQ Investment Management Company, LLC (NWQ), a wholly owned
subsiduary of Nuveen Investments, Inc. Recently we spoke with Jon Bosse,
Chief Investment Officer of NWQ and the Fund's portfolio manager, about
economic conditions and the Fund's performance during the one-year period
that ended June 30, 2003.
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What kind of market environment did the Fund encounter during this reporting
period?
The reporting period was fraught with numerous obstacles, including corporate
accounting fraud, terrorism fears and the war in Iraq. Many stocks languished
for most of the year under these pressures; however, a strong spring rally
lifted many prices off their 52-week lows. Compelling valuations, the passage
of a stimulative tax plan and earnings that surpassed lowered expectations were
among the catalysts behind this rally. Although the U.S. economy showed modest,
but definite, signs of a recovery from its 2001 recessionary levels, corporate
earnings were supported by operating leverage from previous cost reductions. We
think it is unlikely stock prices can maintain their robust upward momentum
without a sustainable pickup in economic growth and improved earnings
visibility.
In this environment, how did the Fund perform?
We were very pleased to have generated strongly positive results for our
clients over the twelve months ended June 30, 2003, despite the generally
difficult investing environment. The Fund's results, as well as the performance
of several appropriate benchmarks, are available in the table on the next page.
We credit our opportunistic approach and focus on downside protection as the
primary contributors to our outperformance relative to the indexes shown. We
correctly identified what we believed was a historic opportunity to purchase
many small- and mid-capitalization technology companies at extremely depressed
valuations, and also overweighted the portfolio with mortgage stocks with the
belief that their earnings would be both greater and more sustainable than many
were expecting. Both of these sectors were significant contributors to
performance for the period shown.
What was your strategy in managing the Fund during the past 12 months?
We employed a consistent, opportunistic approach to investing, utilizing a
bottom-up strategy that focused on identifying attractively valued companies
which possessed favorable risk/reward characteristics and emerging catalysts
that we believed would unlock value or improve profitability. These catalysts
included management changes, restructuring efforts, recognition of undervalued
assets, or a turn in the underlying fundamentals. We also continued to focus on
downside protection, and paid a great deal of attention to a company's balance
sheet and cash flow statement, not just their income statement. We continue to
believe that a cash flow analysis offers a more objective and truer picture of
a company's financial position than an evaluation based on earnings alone.
Given recent market conditions, how did you apply this management strategy?
Increased volatility in the market environment this past year provided us the
opportunity to take advantage of extremely compelling equity valuations. As
mentioned earlier, we made significant purchases in the technology sector where
we had identified a number of companies
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The views expressed reflect those of the portfolio manager and are subject to
change at any time, based on market and other conditions.
Annual Report l Page 2
Class A Shares--
One-Year Total Returns on NAV as of 6/30/03
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Nuveen NWQ Multi-Cap Value Fund/1/ 12.12%
Russell 3000 Value Index/2/ -1.23%
S&P 500 Index/3/ 0.25%
Lipper Multi-Cap Value Funds Index/4/ 2.13%
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that met our investment criteria. These companies were industry leaders, had
tremendous balance sheets, stabilizing fundamentals and were selling at very
depressed valuations. In several instances, companies were trading at discounts
to their net cash in the bank. All of these companies were significant positive
performers for the Fund over this period. We made similar opportunistic
purchases in the finance sector, particularly in the insurance and specialty
lending areas.
What were some of the stocks that most helped the Fund's performance?
Although numerous holdings contributed to the Fund's strong performance in the
past twelve months, the opportunistic purchases we made in the technology
sector played a significant factor.
During the past 9-12 months, we have carried the highest technology weight
since beginning the Multi-Cap Value strategy in 1990. Our technology
investments benefited from a stabilization of revenues, an increase in optimism
about a rebound in capital spending, and previous cost-cutting measures that
have helped cash flows and operating earnings. Significant contributors to
performance in the quarter included Amdocs Ltd and Computer Associates, among
others. Anticipation of increased merger activity has also been bullish for
these stocks (several deals have already been announced). Recently, however, we
have been reducing our technology exposure as risk/reward and valuations have
become less compelling.
Outside of the technology sector, other contributors to the Fund's strong
performance include our mortgage investments in Countrywide Financial and
IndyMac Bancorp, which benefited from historically low interest rates and
record refinance and home purchase activity. Origination volume (purchase and
refinance combined) is expected to surpass a startling $3.5 trillion in 2003,
up from $2.6 trillion last year. Our thesis on
mortgage investments - that earnings would be both greater and more sustainable
than expected - turned out to be correct, and we believe this situation will
persist into the future. Other stellar performers in the finance sector
included insurance underwriter AON Corp, and automobile finance company
AmeriCredit. Our investment in Aetna appreciated as the company's continued
restructuring efforts and lower medical cost trends drove profitability levels
higher, and Liberty Media rose from depressed levels after the company
indicated that it would seek to monetize some of its non-core assets. Liberty
also announced plans to exercise its rights to acquire the 57.5 percent
interest in QVC that it did not already own.
Which of your investments hurt overall Fund performance?
Although the stocks have made a substantial recovery from their mid-March lows,
capital- funding pressures resulted in property casualty insurers Hartford
Financial Services and PMA Capital registering declines for the twelve-months
ended June 30, 2003. Ongoing asbestos liability also weighed heavily on the
shares of Hartford
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1Performance figures are for Class A shares at net asset value as of June 30,
2003. Class A share returns are actual for the period since class inception;
returns prior to class inception are Class R share returns adjusted for
differences in expenses, which are primarily differences in service fees.
Current performance may be more or less than the performance shown.
2The Russell 3000 Value Index is a market-capitalization weighted index of
those firms in the Russell 3000 Index with higher book-to-price ratios and
lower forecasted growth values. The Russell 3000 Index represents the 3000
largest U.S. companies. The index returns assume reinvestment of dividends and
do not reflect any applicable sales charges. You cannot invest directly in an
index.
3The S&P 500 Index is an unmanaged index generally considered to be
representative of the U.S. stock market. The index returns assume reinvestment
of dividends and do not reflect any applicable sales charges. You cannot
invest directly in an index.
4The Lipper Multi-Cap Value Funds Index is a managed index that represents the
average annualized returns of the 30 largest funds in the Lipper Multi-Cap
Value Fund category. The returns assume reinvestment of dividends, but do not
reflect any applicable sales charges. You cannot invest directly in an index.
Annual Report l Page 3
Financial Services. We remain optimistic on our insurance investments going
forward as the capital-funding issues have improved, and Congress may in fact
pass some form of asbestos tort reform later this year. The pricing environment
for the industry has also improved significantly. FelCor Lodging Trust, a hotel
REIT, was weak as the travel and lodging industry endured a challenging
business environment due to the depressed economy and war concerns. Increased
competition from outpatient surgery centers and a weak economy resulted in
lower admission trends, pressuring hospital operator HCA Inc.
What do you see ahead for the markets and the Fund?
Rather than focus on what we cannot control (interest rates, inflation,
economic growth), we intend to concentrate our efforts on identifying
compelling investment opportunities which possess attractive valuation,
favorable risk/reward and downside protection characteristics, and catalysts to
improve profitability or recognize value. We will continue to utilize our
highly disciplined and seasoned team of analysts, a number of whom have primary
work experience in the industries they cover. Although the recent spring rally
in stocks has broadly made valuations less attractive, we continue to see many
pockets of opportunity.
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Growth of an Assumed $10,000 Investment
Nuveen NWQ Multi-Cap Value Fund/1,2,3,4/
[CHART]
Lipper
Multi-Cap Russell
Nuveen NWQ Nuveen NWQ Value 3000 S&P
Multi-Cap Value Multi-Cap Value Funds Value 500
Date Fund (Offer) Fund (NAV) Index Index Index
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11/04/97 $9,425.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
11/30/97 9,074.60 9,628.22 10,213.00 10,409.00 10,463.00
12/31/97 9,336.52 9,906.12 10,435.64 10,718.15 10,642.96
01/31/98 9,249.75 9,814.05 10,411.64 10,562.73 10,761.10
02/28/98 9,926.16 10,531.74 11,127.96 11,266.21 11,536.98
03/31/98 10,668.05 11,318.88 11,627.61 11,933.17 12,127.67
04/30/98 10,854.17 11,516.36 11,692.72 12,010.74 12,250.16
05/31/98 10,324.69 10,954.58 11,433.14 11,808.96 12,039.46
06/30/98 10,557.86 11,201.97 11,420.57 11,940.04 12,528.26
07/31/98 10,075.72 10,690.41 10,978.59 11,664.22 12,395.46
08/31/98 8,257.88 8,761.67 9,298.87 9,920.42 10,603.07
09/30/98 8,670.02 9,198.96 9,683.84 10,488.86 11,282.73
10/31/98 9,401.65 9,975.22 10,480.82 11,259.79 12,200.02
11/30/98 9,681.76 10,272.43 10,933.59 11,766.48 12,939.34
12/31/98 10,003.53 10,613.82 11,115.09 12,164.19 13,684.65
01/31/99 10,436.75 11,073.48 11,153.99 12,232.31 14,256.66
02/28/99 9,971.11 10,579.42 10,894.10 12,008.46 13,813.28
03/31/99 10,489.30 11,129.23 11,194.78 12,231.82 14,365.81
04/30/99 11,641.06 12,351.26 12,190.00 13,373.04 14,921.77
05/31/99 11,808.81 12,529.24 12,126.61 13,264.72 14,569.62
06/30/99 12,165.66 12,907.86 12,517.09 13,657.36 15,378.23
07/31/99 11,671.05 12,383.07 12,091.51 13,262.66 14,898.43
08/31/99 11,110.55 11,788.38 11,675.56 12,771.94 14,825.43
09/30/99 10,682.76 11,334.49 11,172.34 12,338.97 14,419.21
10/31/99 11,190.99 11,873.73 11,517.57 12,979.37 15,331.95
11/30/99 11,377.73 12,071.86 11,512.96 12,888.51 15,643.18
12/31/99 12,059.98 12,795.74 11,775.45 12,972.29 16,564.57
01/31/00 11,217.80 11,902.18 11,267.93 12,554.58 15,733.03
02/29/00 10,395.23 11,029.42 10,675.24 11,736.02 15,435.67
03/31/00 12,073.22 12,809.78 11,803.61 13,063.36 16,945.28
04/30/00 11,755.78 12,472.98 11,781.19 12,926.20 16,435.23
05/31/00 12,001.38 12,733.56 11,944.94 13,039.95 16,098.31
06/30/00 11,566.08 12,271.70 11,685.74 12,510.53 16,495.93
07/31/00 11,687.89 12,400.94 11,785.07 12,684.42 16,238.60
08/31/00 12,516.84 13,280.47 12,533.42 13,380.80 17,247.01
09/30/00 12,400.22 13,156.73 12,359.20 13,490.52 16,336.37
10/31/00 12,703.77 13,478.80 12,653.35 13,796.75 16,267.76
11/30/00 12,194.15 12,938.10 12,186.44 13,298.69 14,985.86
12/31/00 13,425.99 14,245.08 12,911.54 14,012.83 15,059.29
01/31/01 13,761.09 14,600.63 13,399.59 14,088.50 15,593.89
02/28/01 13,482.00 14,304.51 13,032.45 13,722.20 14,171.73
03/31/01 13,393.59 14,210.71 12,575.01 13,255.65 13,273.24
04/30/01 13,851.63 14,696.69 13,389.87 13,902.52 14,304.58
05/31/01 14,166.06 15,030.30 13,685.78 14,218.11 14,400.42
06/30/01 14,181.16 15,046.33 13,454.49 13,965.03 14,050.49
07/31/01 14,434.31 15,314.92 13,437.00 13,916.15 13,912.79
08/31/01 14,041.96 14,898.64 12,938.49 13,392.90 13,041.85
09/30/01 12,847.37 13,631.16 11,612.29 12,412.54 11,988.07
10/31/01 12,827.01 13,609.56 11,851.51 12,334.34 12,217.04
11/30/01 13,764.81 14,604.57 12,709.56 13,063.30 13,154.09
12/31/01 14,207.66 15,074.44 13,078.13 13,405.56 13,269.84
01/31/02 14,402.28 15,280.93 12,908.12 13,322.45 13,076.10
02/28/02 14,498.31 15,382.82 12,739.02 13,347.76 12,823.74
03/31/02 15,274.47 16,206.34 13,388.71 14,007.14 13,305.91
04/30/02 15,534.69 16,482.43 12,995.08 13,600.93 12,499.57
05/31/02 15,542.36 16,490.57 12,982.09 13,626.77 12,407.07
06/30/02 14,332.63 15,207.04 11,988.96 12,882.75 11,523.69
07/31/02 12,925.93 13,714.52 10,993.88 11,631.84 10,625.99
08/31/02 13,284.98 14,095.47 11,168.68 11,709.77 10,695.06
09/30/02 11,199.63 11,882.89 9,957.99 10,440.43 9,532.51
10/31/02 12,008.18 12,740.77 10,490.75 11,169.17 10,371.37
11/30/02 13,517.69 14,342.38 11,272.31 11,885.12 10,982.24
12/31/02 12,950.80 13,740.90 10,775.20 11,369.30 10,337.59
01/31/03 13,258.89 14,067.78 10,553.23 11,090.75 10,066.74
02/28/03 12,675.72 13,449.03 10,282.01 10,790.19 9,915.74
03/31/03 12,697.72 13,472.38 10,321.08 10,815.01 10,011.92
04/30/03 13,996.10 14,849.98 11,217.98 11,772.14 10,836.91
05/30/03 15,987.69 16,963.06 12,155.81 12,563.23 11,408.01
06/30/03 16,064.71 17,044.78 12,244.55 12,724.04 11,554.03
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Thegraph does not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of shares.
1The Index comparison shows the change in value of a $10,000 investment in
Class A shares of the Fund (at NAV) compared with the corresponding indexes.
Index returns reflect total returns and assume reinvestment of dividends but
do not include any initial or ongoing expenses. The Fund returns depicted in
the chart (at offer) reflect the initial maximum sales charge applicable to
Class A shares (5.75%) and all ongoing fund expenses. The performance data
quoted represents past performance, which is not indicative of future results.
Current performance may be more or less than the performance shown.
2The Lipper Multi-Cap Value Funds Index return represents the average
annualized total return of the 30 largest funds in the Lipper Multi-Cap Value
Fund category. An index is not available for direct investment.
3The Russell 3000 Value Index is a market capitalization-weighted index of
those firms in the Russell 3000 Index with higher price-to-book ratios and
lower forecasted growth values. An index is not available for direct
investment.
4The S&P 500 Index is an unmanaged index generally considered representative of
the U.S. stock market. An index is not available for direct investment.
Annual Report l Page 4
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Fund Spotlight as of 6/30/03 Nuveen NWQ Multi-Cap Value Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
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NAV $14.60 $14.61 $14.62 $14.57
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Commencement Date 12/09/02 12/09/02 12/09/02 11/04/97
-----------------------------------------------------
Average Annual Total Returns as of 6/30/03/1/
A Shares NAV Offer
---------------------------------------------
1-Year 12.12% 5.66%
---------------------------------------------
5-Year 8.75 7.46
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Since Inception 9.89 8.75
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B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year 11.27% 7.27%
---------------------------------------------
5-Year 7.95 7.80
---------------------------------------------
Since Inception 9.07 8.96
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year 11.35%
---------------------------------------------
5-Year 7.97
---------------------------------------------
Since Inception 9.09
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year 12.55%
---------------------------------------------
5-Year 9.06
---------------------------------------------
Since Inception 10.20
---------------------------------------------
Equity Diversification/2/
Financials 30.61%
---------------------------------------------
Information Technology 15.63
---------------------------------------------
Energy 10.43
---------------------------------------------
Materials 8.70
---------------------------------------------
Industrials 5.66
---------------------------------------------
Telecommunication Services 5.11
---------------------------------------------
Consumer Staples 4.65
---------------------------------------------
Consumer Discretionary 4.34
---------------------------------------------
Healthcare 3.61
---------------------------------------------
Utilities 0.87
---------------------------------------------
Portfolio Allocation/2/
[CHART]
Common Stocks 89.61%
Convertible Bonds 0.97
Short-Term Investments 9.42
Top Five Stock Holdings/2/
Computer Associates International, Inc. 4.41%
----------------------------------------------------
IndyMac Bancorp, Inc. 3.75
----------------------------------------------------
Countrywide Financial Corporation 3.41
----------------------------------------------------
ConocoPhillips 3.27
----------------------------------------------------
Altria Group, Inc. 3.11
----------------------------------------------------
Portfolio Statistics
Net Assets ($000) $32,118
----------------------------------------------------
Beta/3/ 0.93
----------------------------------------------------
Average Market Capitalization (Stocks) $17 billion
----------------------------------------------------
Number of Stocks 46
----------------------------------------------------
Expense Ratio/4/ 1.66%
----------------------------------------------------
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Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares.
1Class R share returns are actual and reflect the performance of the
predecessor funds. Class A, B and C share returns are actual for the period
since class inception; returns prior to class inception are Class R share
returns adjusted for differences in sales charges and expenses, which are
primarily differences in distribution and service fees. Fund returns assume
reinvestment of dividends and capital gains. Class A shares have a 5.75%
maximum sales charge. Class B shares have a contingent deferred sales charge
(CDSC), also known as a back-end sales charge, that begins at 5% for
redemptions during the first year after purchase and declines periodically to
0% over the following five years. Class B shares automatically convert to
Class A shares eight years after purchase. Class C shares have a 1% CDSC for
redemptions within less than one year, which is not reflected in the one-year
total return.
2As a percentage of total holdings as of June 30, 2003. Holdings are subject to
change.
3Beta is based on comparison with the S&P 500. See the inside back cover for
more information on beta.
4Class A shares after credit/reimbursement.
Annual Report l Page 5
Portfolio Managers' Comments for the Nuveen Large-Cap Value,
Balanced Stock and Bond, and Balanced Municipal and Stock Funds
The Nuveen Large-Cap Value, Balanced Stock and Bond, and Balanced Municipal
and Stock Funds feature equity management by Institutional Capital
Corporation (ICAP). The municipal portion of the Nuveen Balanced Municipal
and Stock Fund is managed by Nuveen Institutional Advisory Corp. (NIAC). We
recently asked Rob Lyon, president and chief investment officer of ICAP, and
Tom Spalding of NIAC to discuss the economic and market environment, key
portfolio management strategies and the performance of these three Funds for
the twelve months ended June 30, 2003.
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What were some of the most significant market factors affecting the Funds'
performance?
There were two entirely different sets of market conditions during the twelve
months ended June 30, 2003. During the first nine months of the period, the
stock market fell steadily, with the exception of a brief time in October and
November 2002. The market's decline could be attributed to a variety of
factors, including continued high energy prices, lower-than-anticipated
corporate spending, disappointing corporate earnings and growing anticipation
of a war in Iraq. In this environment, the broad stock market, as measured by
the S&P 500 Index, fell 17 percent between June 30, 2002, and March 31, 2003.
During the final quarter of the reporting period, the market environment began
changing for the better. Stocks' stronger performance stemmed from continued
low interest rates, the Federal Reserve Board's stated willingness to fight
deflation through monetary stimulus, a more favorable tax environment for
dividend-paying stocks, a swift deposing of the Iraqi regime and preliminary
prospects for peace between Israel and the Palestinian Authority. The S&P 500
Index rose over 15 percent during the second quarter of 2003.
The municipal bond market, meanwhile, enjoyed a very favorable environment for
the majority of the twelve-month period. With interest rates near historic
lows, inflation under control and economic growth relatively sluggish,
investors were attracted to municipal securities during the period, especially
high quality bonds. Late in the period, however, municipal bond yields began
rising and their prices fell. This change reflected the growing perception
among some investors that interest rates may rise in the near future.
In this environment, how did the Funds perform?
The table on the next page provides performance information for each Fund
(Class A shares at net asset value) for the twelve months ended June 30, 2003.
The table also compares each Fund's performance to that of the appropriate
benchmarks.
Disappointing stock selection was the primary reason for the Funds'
underperformance relative to their benchmarks. As we will discuss shortly,
several of our holdings did not perform as expected and made up a substantial
portion of the gap between the Funds' results and those of the indexes.
What was your approach to managing the equity portion of the Funds?
Our investment approach continued to focus on investing in companies that we
believed had good overall business prospects and a catalyst that could trigger
significant share-price appreciation in the future. In addition, we remained
attracted to companies run by management teams that we believed were capable
and credible. We also looked to invest in companies that, in our opinion, were
financially strong and trading at a compelling valuation. In particular, we
liked companies with strong balance sheets, stable or rising earnings and solid
credit ratings.
Early in the period, we tended to avoid companies that we believed would need a
worldwide economic recovery to prosper. As the period progressed and signs of a
potential economic rebound appeared, however, we looked increasingly to stocks
that we believed could benefit from an improved business
- --------------------------------------------------------------------------------
The views expressed reflect those of the portfolio managers and are subject to
change at any time, based on market and other conditions.
Annual Report l Page 6
Class A Shares--
One-Year Total Returns on NAV as of 6/30/03
- --------------------------------------------------------------------------------
Nuveen Large-Cap Value Fund/1/........ -6.28%
Lipper Large-Cap Value Funds Index/2/. -2.13%
Russell 1000 Value Index/3/........... -1.02%
S&P 500 Index/4/...................... 0.25%
---------------------------------------------
Nuveen Balanced Municipal and Stock
Fund/1/............................. -0.25%
Lipper Balanced Funds Index/5/........ 3.49%
Lehman Brothers 10-Year Municipal Bond
Index/6/............................ 9.19%
S&P 500 Index/4/...................... 0.25%
---------------------------------------------
Nuveen Balanced Stock and Bond Fund/1/ -0.99%
Lipper Balanced Funds Index/5/........ 3.49%
Lehman Brothers Intermediate Treasury
Index/7/............................ 8.23%
S&P 500 Index/4/...................... 0.25%
---------------------------------------------
climate. This approach led us to establish positions in cruise operator
Carnival, health insurer Anthem and automotive parts maker Johnson Controls, as
well as add to the Funds' holdings in the utilities and telecommunications
sectors.
On June 30, 2003, the Funds' largest sector weighting was in financial stocks.
We believe that companies in this sector may benefit from the current
environment of low and stable interest rates, and be rewarded for their strong
balance sheets and credit quality.
Were there any stocks that helped the performance of the Funds?
Hewlett-Packard, a large maker of personal computers and other technology
products, performed well, as the company continued to realize substantial cost
savings from its 2002 acquisition of Compaq Computer. Citigroup, the world's
largest financial services business, also helped results; the company benefited
from the low interest rate environment. Cable network operator Liberty Media
also delivered solid results, thanks to an improved climate for advertising
spending. Finally, EnCana, a Canadian oil and gas producer, benefited from
rising natural gas prices.
What were some of the holdings that hurt performance?
The Funds' weakest stock during the twelve-month period was Sears, the large
U.S. retailer. Sears struggled with challenges facing its credit card division,
traditionally the source of much of the company's profits. Restaurant giant
McDonald's results slowed as well, as the company faced declining sales and
weaker-than-expected results from European franchises. Electronic Data Systems,
which provides systems management and other technology consulting services, and
Koninklijke (Royal) Philips Electronics, a leading semiconductor maker, were
hurt by an ongoing slowdown in corporate technology spending. Finally, Cigna, a
large health insurer, experienced declining earnings after the company had
difficulty implementing a new computer system. All but Philips were sold from
the Funds during the period.
How did you manage the municipal portion of the Balanced Municipal and Stock
Fund?
As the period progressed, our conviction increased that stocks may represent a
better future value than
- --------------------------------------------------------------------------------
1Performance figures are quoted for Class A shares at net asset value as of
June 30, 2003. Current performance may be more or less than the performance
shown.
2The Lipper Large-Cap Value Funds Index return represents the average
annualized total return of the 30 largest funds in the Lipper Large-Cap Value
Funds category. The returns assume reinvestment of dividends and do not
reflect any applicable sales charges. An index is not available for direct
investment.
3The Russell 1000 Value Index is a market capitalization-weighted index of
those firms in the Russell 1000 Index with higher price-to-book ratios and
lower forecasted growth value. An index is not available for direct investment.
4The S&P 500 Index is an unmanaged index generally considered representative of
the U.S. stock market. An index is not available for direct investment.
5The Lipper Balanced Funds Index return represents the average annualized total
return of the 30 largest funds in the Lipper Balanced Fund category. The
returns assume reinvestment of dividends and do not reflect any applicable
sales charges. An index is not available for direct investment.
6The Lehman Brothers 10-Year Municipal Bond Index is an unmanaged index
comprised of a broad range of investment-grade municipal bonds and does not
reflect any initial or ongoing expenses. An index is not available for direct
investment.
7The Lehman Brothers Intermediate Treasury Index is an unmanaged index
comprised of treasury securities with maturities ranging from 1-10 years and
does not reflect any initial or ongoing expenses. An index is not available
for direct investment.
Annual Report l Page 7
municipal bonds. Accordingly, as of June 30, 2003, the Fund was 45 percent
invested in equities, 55 percent in municipals. (At the beginning of the
period, by contrast, the Fund's asset allocation was 42 percent equities, 58
percent municipals.)
As municipal securities were outperforming, we gradually let the portfolio's
average maturity and duration drift lower because we believed that securities
on the short end of the yield curve offered better value for shareholders. With
interest rates remaining low, we kept portfolio turnover relatively modest
during the period. When we did make trades, we invested in a wide variety of
general revenue bonds.
What do you see ahead for the markets and the Funds?
We see on the horizon a number of favorable signs for the economy. The Federal
Reserve continues to battle deflation and inflation simultaneously; a balancing
act that, in our opinion, has been successful so far. Recent tax relief
legislation may also add to economic growth and, because of the reduction in
dividend taxes, add to equity performance as well. In this environment, we plan
to stick to our team-driven stock-selection approach and invest in companies
that we believe have solid balance sheets and strong management teams. As our
confidence increases that the economy is recovering, we expect to continue to
focus on companies we believe may be positioned to benefit from a stronger
economy.
With respect to the Balanced Municipal and Stock Fund, we are comfortable with
the Fund's current asset allocation. We will continue to monitor changes in the
municipal market. If longer- maturity bonds begin to follow the lead of their
shorter counterparts, we may increasingly look to those securities for future
investment opportunities.
- --------------------------------------------------------------------------------
Growth of an Assumed $10,000 Investment
Nuveen Large-Cap Value Fund/1,2,3,4/
[CHART]
Nuveen Nuveen Russell Lipper
Large-Cap Large-Cap S&P 1000 Large-Cap
Value Fund Value Fund 500 Value Value Funds
Date (NAV) (Offer) Index Index Index
- ---------- ---------- ---------- ----- ----- -----------
08/31/1996 10000 9425 10000 10000 10000
09/30/1996 10414 9815 10562 10398 10490
10/31/1996 10864 10239 10854 10800 10711
11/30/1996 11638 10969 11673 11583 11478
12/31/1996 11371 10717 11442 11435 11284
01/31/1997 11951 11264 12156 11990 11854
02/28/1997 12036 11344 12252 12166 11949
03/31/1997 11784 11106 11749 11728 11493
04/30/1997 12360 11650 12450 12221 12004
05/31/1997 13026 12277 13208 12904 12695
06/30/1997 13617 12834 13799 13457 13225
07/31/1997 14626 13785 14896 14469 14222
08/31/1997 14007 13201 14062 13954 13613
09/30/1997 14776 13926 14832 14797 14310
10/31/1997 14356 13531 14337 14384 13878
11/30/1997 14368 13542 15001 15020 14333
12/31/1997 14496 13662 15258 15459 14497
01/31/1998 14577 13739 15427 15239 14517
02/28/1998 15670 14769 16539 16265 15472
03/31/1998 16030 15109 17385 17260 16159
04/30/1998 16473 15526 17560 17376 16324
05/31/1998 16479 15532 17258 17119 16046
06/30/1998 16555 15603 17959 17338 16347
07/31/1998 15949 15032 17768 17032 16064
08/31/1998 13332 12565 15202 14498 13871
09/30/1998 13801 13008 16176 15330 14538
10/31/1998 14715 13869 17490 16518 15703
11/30/1998 15371 14487 18550 17288 16504
12/31/1998 15932 15016 19618 17876 17141
01/31/1999 16723 15761 20438 18019 17425
02/28/1999 16104 15178 19803 17765 17026
03/31/1999 16577 15624 20595 18133 17544
04/30/1999 17945 16913 21393 19826 18577
05/31/1999 17889 16861 20888 19608 18259
06/30/1999 18605 17535 22047 20177 19065
07/31/1999 17704 16686 21359 19586 18523
08/31/1999 17154 16167 21253 18859 18186
09/30/1999 16824 15857 20671 18201 17513
10/31/1999 17608 16596 21979 19249 18357
11/30/1999 17890 16862 22426 19099 18422
12/31/1999 18264 17214 23746 19191 18989
01/31/2000 17990 16956 22553 18565 18186
02/29/2000 17317 16322 22126 17186 17420
03/31/2000 18547 17480 24289 19282 19016
04/30/2000 18467 17405 23559 19059 18805
05/31/2000 18301 17249 23075 19259 18818
06/30/2000 17615 16602 23644 18379 18611
07/31/2000 17477 16472 23276 18608 18527
08/31/2000 18425 17365 24721 19643 19600
09/30/2000 18620 17549 23416 19824 19290
10/31/2000 19192 18088 23317 20311 19444
11/30/2000 18721 17645 21480 19558 18610
12/31/2000 19627 18499 21585 20538 19360
01/31/2001 19956 18809 22351 20616 19521
02/28/2001 19700 18567 20313 20043 18580
03/31/2001 18866 17781 19025 19335 17857
04/30/2001 19940 18793 20503 20282 18870
05/31/2001 20333 19163 20641 20739 19174
06/30/2001 19555 18431 20139 20278 18652
07/31/2001 19459 18340 19942 20236 18525
08/31/2001 18449 17389 18694 19424 17658
09/30/2001 17504 16497 17183 18057 16281
10/31/2001 17752 16731 17511 17902 16387
11/30/2001 18618 17547 18854 18942 17437
12/31/2001 19174 18071 19020 19389 17700
01/31/2002 18595 17526 18743 19239 17373
02/28/2002 18410 17351 18381 19270 17277
03/31/2002 19125 18026 19072 20182 18039
04/30/2002 18571 17503 17916 19489 17271
05/31/2002 18595 17526 17784 19587 17293
06/30/2002 17140 16154 16517 18463 16088
07/31/2002 15741 14836 15231 16746 14698
08/31/2002 15854 14942 15330 16873 14796
09/30/2002 13755 12964 13663 14997 13086
10/31/2002 14173 13358 14866 16108 14047
11/30/2002 15058 14192 15741 17123 14927
12/31/2002 14367 13540 14817 16380 14217
01/31/2003 14359 13533 14429 15983 13878
02/28/2003 14100 13289 14213 15556 13531
03/31/2003 14213 13396 14351 15583 13523
04/30/2003 15230 14354 15533 16954 14665
05/31/2003 15844 14933 16352 18049 15568
06/30/2003 16086 15161 16561 18275 15745
- --------------------------------------------------------------------------------
The graph does not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of shares.
1The Index comparison shows the change in value of a $10,000 investment in
Class A shares of the Fund (at NAV) compared with the corresponding indexes.
Index returns reflect total returns and assume reinvestment of dividends but
to not include any initial or ongoing expenses. The Fund returns depicted in
the chart (at offer) reflect the initial maximum sales charge applicable to
Class A shares (5.75%) and all ongoing fund expenses. The performance data
quoted represents past performance, which is not indicative of future results.
Current performance may be more or less than the performance shown.
2The S&P 500 Index is an unmanaged index generally considered representative of
the U.S. stock market. An index is not available for direct investment.
3The Lipper Large-Cap Value Funds Index return represents the average
annualized total return of the 30 largest funds in the Lipper Large-Cap Value
Fund category. An index is not available for direct investment.
4The Russell 1000 Value Index is a market capitalization-weighted index of
those firms in the Russell 1000 Index with higher price-to-book ratios and
lower forecasted growth values. An index is not available for direct
investment.
Annual Report l Page 8
Growth of an Assumed $10,000 Investment
Nuveen Balanced Municipal and Stock Fund/1,2,3/
[CHART]
Nuveen Municipal Nuveen Municipal S&P Lehman Brothers
and Stock and Stock 500 10-Year Municipal
Date Fund (Offer) Fund (NAV) Index Index
- ---------- ---------------- ---------------- ------ --------------------
8/31/1996 9,425 10,000 10,000 10,000
9/30/1996 9,643 10,231 10,562 10,103
10/31/1996 9,862 10,463 10,854 10,230
11/30/1996 10,266 10,892 11,673 10,437
12/31/1996 10,196 10,818 11,442 10,390
1/31/1997 10,403 11,038 12,156 10,431
2/28/1997 10,510 11,151 12,252 10,529
3/31/1997 10,374 11,006 11,749 10,387
4/30/1997 10,607 11,254 12,450 10,464
5/31/1997 10,918 11,584 13,208 10,613
6/30/1997 11,177 11,858 13,799 10,730
7/31/1997 11,716 12,431 14,896 11,031
8/31/1997 11,428 12,125 14,062 10,924
9/30/1997 11,780 12,499 14,832 11,063
10/31/1997 11,656 12,368 14,337 11,122
11/30/1997 11,708 12,422 15,001 11,173
12/31/1997 11,860 12,584 15,258 11,349
1/31/1998 11,957 12,687 15,427 11,475
2/28/1998 12,375 13,129 16,539 11,474
3/31/1998 12,527 13,291 17,385 11,466
4/30/1998 12,634 13,405 17,560 11,403
5/31/1998 12,772 13,551 17,258 11,597
6/30/1998 12,821 13,603 17,959 11,640
7/31/1998 12,607 13,376 17,768 11,658
8/31/1998 11,766 12,484 15,202 11,861
9/30/1998 12,041 12,776 16,176 12,038
10/31/1998 12,393 13,149 17,490 12,043
11/30/1998 12,643 13,414 18,550 12,079
12/31/1998 12,849 13,633 19,618 12,116
1/31/1999 13,151 13,953 20,438 12,302
2/28/1999 12,937 13,726 19,803 12,191
3/31/1999 13,065 13,862 20,595 12,185
4/30/1999 13,489 14,312 21,393 12,218
5/31/1999 13,412 14,231 20,888 12,132
6/30/1999 13,525 14,350 22,047 11,907
7/31/1999 13,292 14,103 21,359 11,986
8/31/1999 13,069 13,866 21,253 11,942
9/30/1999 12,978 13,769 20,671 11,983
10/31/1999 13,185 13,990 21,979 11,898
11/30/1999 13,351 14,166 22,426 12,027
12/31/1999 13,445 14,265 23,746 11,965
1/31/2000 13,286 14,097 22,553 11,916
2/29/2000 13,124 13,925 22,126 12,010
3/31/2000 13,650 14,483 24,289 12,244
4/30/2000 13,592 14,421 23,559 12,183
5/31/2000 13,445 14,265 23,075 12,111
6/30/2000 13,413 14,231 23,644 12,440
7/31/2000 13,475 14,297 23,276 12,612
8/31/2000 13,825 14,669 24,721 12,807
9/30/2000 13,839 14,683 23,416 12,749
10/31/2000 14,002 14,857 23,317 12,879
11/30/2000 13,877 14,723 21,480 12,948
12/31/2000 14,279 15,151 21,585 13,252
1/31/2001 14,453 15,335 22,351 13,423
2/28/2001 14,385 15,262 20,313 13,446
3/31/2001 14,127 14,989 19,025 13,560
4/30/2001 14,420 15,300 20,503 13,394
5/31/2001 14,617 15,509 20,641 13,540
6/30/2001 14,432 15,312 20,139 13,621
7/31/2001 14,468 15,350 19,942 13,808
8/31/2001 14,258 15,128 18,694 14,044
9/30/2001 13,940 14,791 17,183 14,024
10/31/2001 14,084 14,944 17,511 14,198
11/30/2001 14,066 14,924 18,854 14,015
12/31/2001 13,874 14,721 19,020 13,866
1/31/2002 13,526 14,351 18,743 14,128
2/28/2002 13,563 14,390 18,381 14,330
3/31/2002 13,699 14,534 19,072 14,035
4/30/2002 13,625 14,457 17,916 14,361
5/31/2002 13,668 14,502 17,784 14,428
6/30/2002 13,254 14,062 16,517 14,607
7/31/2002 12,821 13,603 15,231 14,801
8/31/2002 12,868 13,653 15,330 14,994
9/30/2002 12,287 13,037 13,663 15,352
10/31/2002 12,346 13,099 14,866 15,073
11/30/2002 12,648 13,420 15,741 14,949
12/31/2002 12,495 13,257 14,817 15,276
1/31/2003 12,473 13,234 14,429 15,194
2/28/2003 12,438 13,197 14,213 15,457
3/31/2003 12,409 13,166 14,351 15,465
4/30/2003 12,808 13,590 15,533 15,581
5/31/2003 13,157 13,960 16,352 16,026
6/30/2003 13,227 14,034 16,561 15,949
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Growth of an Assumed $10,000 Investment
Nuveen Balanced Stock and Bond Fund/1,2,4/
[CHART]
Nuveen Balanced Nuveen Balanced Lehman Brothers
Stock and Bond Stock and Bond S&P 500 Intermediate
Date Fund (Offer) Fund (NAV) Index Treasury Index
- ---------- --------------- --------------- ------- ---------------
08/31/1996 9425 10000 10000 10000
09/30/1996 9712 10305 10562 10128
10/31/1996 10051 10665 10854 10294
11/30/1996 10595 11242 11673 10418
12/31/1996 10461 11099 11442 10361
01/31/1997 10813 11473 12156 10400
02/28/1997 10862 11524 12252 10415
03/31/1997 10686 11338 11749 10354
04/30/1997 10981 11651 12450 10470
05/31/1997 11290 11979 13208 10552
06/30/1997 11602 12310 13799 10642
07/31/1997 12186 12929 14896 10841
08/31/1997 11840 12562 14062 10797
09/30/1997 12259 13007 14832 10915
10/31/1997 12156 12897 14337 11043
11/30/1997 12165 12908 15001 11068
12/31/1997 12279 13028 15258 11159
01/31/1998 12395 13151 15427 11308
02/28/1998 12946 13735 16539 11294
03/31/1998 13164 13968 17385 11328
04/30/1998 13404 14222 17560 11381
05/31/1998 13444 14264 17258 11459
06/30/1998 13537 14363 17959 11536
07/31/1998 13219 14025 17768 11581
08/31/1998 11890 12616 15202 11810
09/30/1998 12386 13142 16176 12095
10/31/1998 12927 13716 17490 12119
11/30/1998 13329 14143 18550 12074
12/31/1998 13649 14482 19618 12120
01/31/1999 14100 14960 20438 12174
02/28/1999 13591 14420 19803 11996
03/31/1999 13916 14765 20595 12075
04/30/1999 14706 15603 21393 12109
05/31/1999 14585 15475 20888 12031
06/30/1999 14917 15827 22047 12053
07/31/1999 14472 15355 21359 12064
08/31/1999 14175 15040 21253 12088
09/30/1999 14079 14938 20671 12182
10/31/1999 14510 15395 21979 12198
11/30/1999 14637 15530 22426 12203
12/31/1999 14834 15739 23746 12169
01/31/2000 14660 15554 22553 12136
02/29/2000 14401 15279 22126 12231
03/31/2000 15154 16078 24289 12386
04/30/2000 15067 15987 23559 12377
05/31/2000 14980 15894 23075 12429
06/30/2000 14733 15632 23644 12608
07/31/2000 14709 15607 23276 12693
08/31/2000 15288 16221 24721 12825
09/30/2000 15387 16326 23416 12924
10/31/2000 15764 16725 23317 13009
11/30/2000 15587 16538 21480 13197
12/31/2000 16203 17192 21585 13417
01/31/2001 16446 17449 22351 13575
02/28/2001 16344 17341 20313 13700
03/31/2001 15885 16854 19025 13808
04/30/2001 16456 17460 20503 13753
05/31/2001 16700 17718 20641 13809
06/30/2001 16263 17255 20139 13859
07/31/2001 16321 17317 19942 14110
08/31/2001 15780 16743 18694 14232
09/30/2001 15315 16250 17183 14527
10/31/2001 15581 16531 17511 14748
11/30/2001 16060 17039 18854 14581
12/31/2001 16306 17301 19020 14511
01/31/2002 16007 16984 18743 14561
02/28/2002 15968 16942 18381 14671
03/31/2002 16250 17241 19072 14447
04/30/2002 16132 17117 17916 14705
05/31/2002 16224 17214 17784 14807
06/30/2002 15413 16354 16517 14987
07/31/2002 14704 15601 15231 15287
08/31/2002 14835 15740 15330 15448
09/30/2002 13669 14503 13663 15744
10/31/2002 13881 14728 14866 15716
11/30/2002 14376 15253 15741 15570
12/31/2002 14079 14938 14817 15859
01/31/2003 14046 14903 14429 15813
02/28/2003 13986 14839 14213 15984
03/31/2003 14066 14924 14351 15984
04/30/2003 14661 15555 15533 16016
05/31/2003 15156 16081 16352 16264
06/30/2003 15273 16205 16561 16238
- --------------------------------------------------------------------------------
The graphs do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of shares.
1The Index comparison shows the change in value of a $10,000 investment in
Class A shares of the Fund (at NAV) compared with the corresponding indexes.
Index returns reflect total returns and assume reinvestment of dividends but
to not include any initial or ongoing expenses. The Fund returns depicted in
the chart (at offer) reflect the initial maximum sales charge applicable to
Class A shares (5.75%) and all ongoing fund expenses. The performance data
quoted represents past performance, which is not indicative of future results.
Current performance may be more or less than the performance shown.
2The S&P 500 Index is an unmanaged index generally considered representative of
the U.S. stock market. An index is not available for direct investment.
3The Lehman Brothers 10-Year Municipal Bond Index is an unmanaged index
comprised of a broad range of investment-grade municipal bonds and does not
reflect any initial or ongoing expenses. An index is not available for direct
investment.
4The Lehman Brothers Intermediate Treasury Index is an unmanaged index
comprised of treasury securities with maturities ranging from 1-10 years and
does not reflect any initial or ongoing expenses. An index is not available
for direct investment.
Annual Report l Page 9
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/03 Nuveen Large-Cap Value Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $19.93 $19.62 $19.58 $19.99
--------------------------------------------------------------
Commencement Date 8/07/96 8/07/96 8/07/96 8/07/96
--------------------------------------------------------------
Average Annual Total Returns as of 6/30/03/1/
A Shares NAV Offer
---------------------------------------------
1-Year -6.28% -11.67%
---------------------------------------------
5-Year -0.58 -1.75
---------------------------------------------
Since Inception 7.15 6.23
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year -6.93% -10.65%
---------------------------------------------
5-Year -1.28 -1.44
---------------------------------------------
Since Inception 6.38 6.38
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year -6.94%
---------------------------------------------
5-Year -1.29
---------------------------------------------
Since Inception 6.36
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year -5.99%
---------------------------------------------
5-Year -0.32
---------------------------------------------
Since Inception 7.44
---------------------------------------------
Equity Diversification/2/
Financials 22.08%
---------------------------------------------
Consumer Discretionary 18.64
---------------------------------------------
Industrials 13.23
---------------------------------------------
Healthcare 9.83
---------------------------------------------
Energy 8.25
---------------------------------------------
Consumer Staples 7.85
---------------------------------------------
Telecommunication Services 6.47
---------------------------------------------
Utilities 5.16
---------------------------------------------
Materials 3.25
---------------------------------------------
Information Technology 3.20
---------------------------------------------
Portfolio Allocation/2/
[CHART]
Equities 97.96%
Short-Term Investments 2.04
Top Five Stock Holdings/2/
Citigroup Inc. 4.61%
---------------------------------------------------
Bank of America Corporation 4.11
---------------------------------------------------
Liberty Media Corporation - Class A 3.46
---------------------------------------------------
Wells Fargo & Company 3.39
---------------------------------------------------
Pfizer Inc. 3.27
---------------------------------------------------
Portfolio Statistics
Net Assets ($000) $559,112
---------------------------------------------------
Beta/3/ 0.72
---------------------------------------------------
Average Market Capitalization (Stocks) $69 billion
---------------------------------------------------
Average P/E (Stocks) 23.0
---------------------------------------------------
Number of Stocks 49
---------------------------------------------------
Expense Ratio/4/ 1.45%
---------------------------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares.
1Returns reflect differences in sales charges and expenses among the share
classes. Fund returns assume reinvestment of dividends and capital gains.
Class A shares have a 5.75% maximum sales charge. Class B shares have a
contingent deferred sales charge (CDSC), also known as a back-end sales
charge, that begins at 5% for redemptions during the first year after purchase
and declines periodically to 0% over the following five years. Class B shares
automatically convert to Class A shares eight years after purchase. Class C
shares have a 1% CDSC for redemptions within less than one year, which is not
reflected in the one-year total return figures.
2As a percentage of total holdings as of June 30, 2003. Holdings are subject to
change.
3Beta is based on comparison with the S&P 500. See the inside back cover for
more information on beta.
4Class A shares after credit/reimbursement.
Annual Report l Page 10
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/03 Nuveen Balanced Municipal and Stock Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $20.79 $21.63 $21.61 $20.46
--------------------------------------------------------------
Latest Tax-Exempt
Dividend/1/ $0.0300 $0.0185 $0.0185 $0.0335
--------------------------------------------------------------
Commencement Date 8/07/96 8/07/96 8/07/96 8/07/96
--------------------------------------------------------------
Average Annual Total Returns as of 6/30/03/2/
A Shares NAV Offer
---------------------------------------------
1-Year -0.25% -5.98%
---------------------------------------------
5-Year 0.63 -0.56
---------------------------------------------
Since Inception 4.97 4.07
---------------------------------------------
B Shares w/o CDSC w/CDSC
---------------------------------------------
1-Year -1.01% -4.92%
---------------------------------------------
5-Year -0.11 -0.28
---------------------------------------------
Since Inception 4.21 4.21
---------------------------------------------
C Shares NAV
---------------------------------------------
1-Year -1.01%
---------------------------------------------
5-Year -0.11
---------------------------------------------
Since Inception 4.20
---------------------------------------------
R Shares NAV
---------------------------------------------
1-Year -0.02%
---------------------------------------------
5-Year 0.88
---------------------------------------------
Since Inception 5.23
---------------------------------------------
Equity Diversification/3/
Financials 10.22%
---------------------------------------------
Consumer Discretionary 8.45
---------------------------------------------
Industrials 6.10
---------------------------------------------
Healthcare 4.44
---------------------------------------------
Energy 3.71
---------------------------------------------
Consumer Staples 3.56
---------------------------------------------
Telecommunication Services 2.98
---------------------------------------------
Utilities 2.34
---------------------------------------------
Materials 1.47
---------------------------------------------
Information Technology 1.46
---------------------------------------------
Portfolio Allocation/3/
[CHART]
Municipal Bonds 55.27%
Equities 44.73
Top Five Stock Holdings/3/
Citigroup Inc. 2.11%
---------------------------------------------------
Bank of America Corporation 1.95
---------------------------------------------------
Liberty Media Corporation - Class A 1.57
---------------------------------------------------
Wells Fargo & Company 1.50
---------------------------------------------------
Pfizer Inc. 1.45
---------------------------------------------------
Portfolio Statistics
Net Assets ($000) $96,128
---------------------------------------------------
Average Market Capitalization (Stocks) $69 billion
---------------------------------------------------
Average P/E (Stocks) 23.0
---------------------------------------------------
Number of Stocks 49
---------------------------------------------------
Duration (Bonds) 3.73
---------------------------------------------------
Expense Ratio/4/ 1.24%
---------------------------------------------------
Yields/5/
A Shares NAV Offer
------------------------------
SEC 30-Day 1.73% 1.63%
------------------------------
Distribution Rate 1.73 1.63
------------------------------
B Shares NAV
------------------------------
SEC 30-Day 1.08%
------------------------------
Distribution Rate 1.03
------------------------------
C Shares NAV
------------------------------
SEC 30-Day 1.08%
------------------------------
Distribution Rate 1.03
------------------------------
R Shares NAV
------------------------------
SEC 30-Day 2.08%
------------------------------
Distribution Rate 1.96
------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares.
1Paid July 1, 2003. This is the latest monthly tax-exempt dividend declared
during the period ended June 30, 2003. Income is generally exempt from regular
federal income taxes. Income may be subject to state and local taxes and to
the federal alternative minimum tax. Capital gains, if any, are subject to tax.
2Returns reflect differences in sales charges and expenses among the share
classes. Fund returns assume reinvestment of dividends and capital gains.
Class A shares have a 5.75% maximum sales charge. Class B shares have a
contingent deferred sales charge (CDSC), also known as a back-end sales
charge, that begins at 5% for redemptions during the first year after purchase
and declines periodically to 0% over the following five years. Class B shares
automatically convert to Class A shares eight years after purchase. Class C
shares have a 1% CDSC for redemptions within less than one year, which is not
reflected in the one-year total return figures.
3As a percentage of total holdings as of June 30, 2003. Holdings are subject to
change.
4Class A shares after credit/reimbursement.
5Distribution Rate Yields may differ from SEC 30-Day Yields due to, among other
factors, amortization of post-purchase bond premiums and differences between
portfolio earnings and distribution rates.
Annual Report l Page 11
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/03 Nuveen Balanced Stock and Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
-----------------------------------------------------
NAV $22.72 $22.72 $22.73 $22.72
-----------------------------------------------------
Commencement Date 8/07/96 8/07/96 8/07/96 8/07/96
-----------------------------------------------------
Average Annual Total Returns as of 6/30/03/1/
A Shares NAV Offer
----------------------------------------------
1-Year -0.99% -6.68%
----------------------------------------------
5-Year 2.44 1.24
----------------------------------------------
Since Inception 7.12 6.21
----------------------------------------------
B Shares w/o CDSC w/CDSC
----------------------------------------------
1-Year -1.73% -5.60%
----------------------------------------------
5-Year 1.68 1.52
----------------------------------------------
Since Inception 6.33 6.33
----------------------------------------------
C Shares NAV
----------------------------------------------
1-Year -1.73%
----------------------------------------------
5-Year 1.69
----------------------------------------------
Since Inception 6.34
----------------------------------------------
R Shares NAV
----------------------------------------------
1-Year -0.70%
----------------------------------------------
5-Year 2.70
----------------------------------------------
Since Inception 7.39
----------------------------------------------
Equity Diversification/2/
Financials 13.68%
----------------------------------------------
Consumer Discretionary 11.42
----------------------------------------------
Industrials 8.18
----------------------------------------------
Healthcare 6.00
----------------------------------------------
Energy 4.90
----------------------------------------------
Consumer Staples 4.81
----------------------------------------------
Telecommunication Services 3.96
----------------------------------------------
Utilities 3.14
----------------------------------------------
Materials 1.97
----------------------------------------------
Information Technology 1.91
----------------------------------------------
Portfolio Allocation/2/
[CHART]
Equities 59.97%
U.S. Government Obligations 38.05
Short-Term Investments 1.98
Top Five Stock Holdings/2/
Citigroup Inc. 2.83%
---------------------------------------------------
Bank of America Corporation 2.53
---------------------------------------------------
Liberty Media Corporation - Class A 2.21
---------------------------------------------------
Wells Fargo & Company 2.00
---------------------------------------------------
Pfizer Inc. 1.96
---------------------------------------------------
Portfolio Statistics
Net Assets ($000) $63,595
---------------------------------------------------
Average Market Capitalization (Stocks) $69 billion
---------------------------------------------------
Average P/E (Stocks) 23.1
---------------------------------------------------
Number of Stocks 49
---------------------------------------------------
Duration (Bonds) 4.24
---------------------------------------------------
Expense Ratio/3/ 1.25%
---------------------------------------------------
Yields/4/
A Shares NAV Offer
-------------------------------
SEC 30-Day 0.67% 0.63%
-------------------------------
Distribution Rate 1.85 1.74
-------------------------------
B Shares NAV
-------------------------------
SEC 30-Day -0.05%
-------------------------------
Distribution Rate 1.12
-------------------------------
C Shares NAV
-------------------------------
SEC 30-Day -0.05%
-------------------------------
Distribution Rate 1.12
-------------------------------
R Shares NAV
-------------------------------
SEC 30-Day 0.96%
-------------------------------
Distribution Rate 2.10
-------------------------------
- --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the Fund prospectus.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares.
1Returns reflect differences in sales charges and expenses among the share
classes. Fund returns assume reinvestment of dividends and capital gains.
Class A shares have a 5.75% maximum sales charge. Class B shares have a
contingent deferred sales charge (CDSC), also known as a back-end sales
charge, that begins at 5% for redemptions during the first year after purchase
and declines periodically to 0% over the following five years. Class B shares
automatically convert to Class A shares eight years after purchase. Class C
shares have a 1% CDSC for redemptions within less than one year, which is not
reflected in the one-year total return figures.
2As a percentage of total holdings as of June 30, 2003. Holdings are subject to
change.
3Class A Shares after credit/reimbursement.
4Distribution Rate Yields may differ from SEC 30-Day Yields due to, among other
factors, amortization of post-purchase bond premiums and differences between
portfolio earnings and distribution rates.
Annual Report l Page 12
Portfolio of Investments
NUVEEN NWQ MULTI-CAP VALUE FUND
June 30, 2003
Market
Shares Description Value
- --------------------------------------------------------------------
COMMON STOCKS - 92.7%
Consumer Discretionary - 4.5%
88,032 Liberty Media Corporation - Class A # $ 1,017,650
35,000 Toys "R" Us, Inc. # 424,200
- --------------------------------------------------------------------
Consumer Staples - 4.8%
22,700 Altria Group, Inc. 1,031,488
25,000 Safeway Inc. # 511,500
- --------------------------------------------------------------------
Energy - 10.8%
19,840 ConocoPhillips 1,087,232
17,000 Kerr-McGee Corporation 761,600
15,000 GlobalSantaFe Corporation 350,100
22,300 Noble Energy, Inc. 842,940
19,200 Transocean Inc. # 421,824
- --------------------------------------------------------------------
Financials - 31.6%
67,200 AmeriCredit Corp. # 574,560
40,000 Aon Corporation 963,200
9,767 Bank of America Corporation 771,886
25,000 CIT Group Inc. 616,250
16,300 Countrywide Financial Corporation 1,133,991
11,100 Fannie Mae 748,584
45,400 FelCor Lodging Trust Inc. 349,126
18,600 FleetBoston Financial Corporation 552,606
28,470 Friedman, Billings, Ramsey Group, Inc. - Class A 381,498
13,800 The Hartford Financial Services Group, Inc. 694,968
49,000 IndyMac Bancorp, Inc. 1,245,580
14,400 Loews Corporation 680,976
11,000 MGIC Investment Corporation 513,040
40,000 PMA Capital Corporation - Class A 502,800
12,000 Radian Group Inc. 439,800
- --------------------------------------------------------------------
Healthcare - 3.7%
10,000 Aetna Inc. 602,000
18,600 HCA Inc. 595,944
- --------------------------------------------------------------------
Industrials - 5.9%
9,100 Ingersoll Rand Co., Limited - Class A 430,612
9,000 Northrop Grumman Corporation 776,610
20,500 Raytheon Company 673,220
- --------------------------------------------------------------------
Information Technology - 16.2%
190,000 Agere Systems Inc. - Class B # 437,000
32,500 Agilent Technologies, Inc. # 635,375
27,000 Amdocs Limited # 648,000
65,800 Computer Associates International, Inc. 1,466,024
52,200 Comverse Technology, Inc. # 784,566
65,600 Maxtor Corporation # 492,656
- ----
13
Portfolio of Investments
NUVEEN NWQ MULTI-CAP VALUE FUND (continued)
June 30, 2003
Market
Shares Description Value
- -------------------------------------------------------------
Information Technology (continued)
90,000 Quantum Corporation # $ 364,500
75,400 SonicWALL, Inc. # 361,920
- -------------------------------------------------------------
Materials - 9.0%
52,000 Barrick Gold Corporation 930,800
14,800 Bowater Incorporated 554,260
11,200 Companhia Vale do Rio Doce (CVRD) ADR 332,192
30,000 Packaging Corporation of America # 552,900
42,000 Sappi Limited Sponsored ADR 518,700
- -------------------------------------------------------------
Telecommunication Services - 5.3%
7,600 ALLTEL Corporation 366,472
61,300 Sprint Corporation 882,720
9,000 Telephone and Data Systems, Inc. 447,300
- -------------------------------------------------------------
Utilities - 0.9%
7,500 DTE Energy Company 289,800
- -------------------------------------------------------------
Total Common Stocks (cost $26,519,722) 29,760,970
------------------------------------------------------
Principal Market
Amount (000) Description Value
- --------------------------------------------------------------------------
CONVERTIBLE BONDS - 1.0%
Information Technology - 1.0%
$ 280 Agere Systems Inc., Convertible Subordinate 322,000
Notes, 6.500%, 12/15/09
- --------------------------------------------------------------------------
Total Convertible Bonds (cost $280,000) 322,000
-------------------------------------------------------------
SHORT-TERM INVESTMENTS - 9.7%
3,128 State Street Bank Repurchase Agreement, 3,128,000
0.930%, dated 6/30/03, due 7/01/03,
repurchase price $3,128,081, collateralized
by U.S. Treasury Bonds
- --------------------------------------------------------------------------
Total Short-Term Investments (cost 3,128,000
$3,128,000)
-------------------------------------------------------------
Total Investments (cost $29,927,722) - 103.4% 33,210,970
-------------------------------------------------------------
Other Assets Less Liabilities - (3.4)% (1,092,889)
-------------------------------------------------------------
Net Assets - 100% $ 32,118,081
-------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
14
Portfolio of Investments
NUVEEN LARGE-CAP VALUE FUND
June 30, 2003
Market
Shares Description Value
- ----------------------------------------------------------------------------------------
COMMON STOCKS - 98.1%
Consumer Discretionary - 18.7%
168,250 Carnival Corporation $ 5,469,808
302,250 Clear Channel Communications, Inc. # 12,812,378
538,889 Comcast Corporation - Class A # 16,263,670
106,299 Gannett Co., Inc. 8,164,826
58,750 Johnson Controls, Inc. 5,029,000
698,532 Koninklijke (Royal) Philips Electronics N.V. - New York Shares 13,348,947
1,674,900 Liberty Media Corporation - Class A # 19,361,844
191,450 Lowe's Companies, Inc. 8,222,778
412,400 Target Corporation 15,605,216
- ----------------------------------------------------------------------------------------
Consumer Staples - 7.9%
178,800 The Clorox Company 7,625,820
378,650 Diageo plc Sponsored ADR 16,569,724
80,600 The Estee Lauder Companies Inc. - Class A 2,702,518
382,950 PepsiCo, Inc. 17,041,275
- ----------------------------------------------------------------------------------------
Energy - 8.3%
256,484 ConocoPhillips 14,055,323
319,759 EnCana Corp. 12,269,153
165,150 Exxon Mobil Corporation 5,930,537
141,600 Noble Corporation # 4,856,880
269,850 Occidental Petroleum Corporation 9,053,468
- ----------------------------------------------------------------------------------------
Financials - 22.0%
287,050 American International Group, Inc. 15,839,419
290,850 Bank of America Corporation 22,985,876
602,654 Citigroup Inc. 25,793,591
76,200 Fannie Mae 5,138,928
115,050 The Goldman Sachs Group, Inc. 9,635,438
481,400 MetLife, Inc. 13,633,248
722,006 Travelers Property Casualty Corp. - Class A 11,479,895
376,700 Wells Fargo & Company 18,985,680
- ----------------------------------------------------------------------------------------
Healthcare - 9.8%
76,100 Anthem, Inc. # 5,871,115
418,200 HCA Inc. 13,399,128
66,250 McKesson Corporation 2,367,775
536,200 Pfizer Inc. 18,311,230
329,850 Wyeth 15,024,668
- ----------------------------------------------------------------------------------------
Industrials - 13.2%
137,100 Caterpillar Inc. 7,630,986
855,950 Cendant Corporation # 15,681,004
561,602 General Electric Company 16,106,745
117,263 Northrop Grumman Corporation 10,118,624
268,350 Tyco International Ltd. 5,093,283
- ----
15
Portfolio of Investments
NUVEEN LARGE-CAP VALUE FUND (continued)
June 30, 2003
Market
Shares Description Value
- -------------------------------------------------------------------------------------------
Industrials (continued)
183,850 Union Pacific Corporation $ 10,666,977
122,950 United Technologies Corporation 8,708,548
- -------------------------------------------------------------------------------------------
Information Technology - 3.2%
333,100 Accenture Ltd. - Class A # 6,025,779
558,011 Hewlett-Packard Company 11,885,633
- -------------------------------------------------------------------------------------------
Materials - 3.3%
200,150 Air Products and Chemicals, Inc. 8,326,240
45,900 Alcan Inc. 1,436,211
201,950 E. I. du Pont de Nemours and Company 8,409,197
- -------------------------------------------------------------------------------------------
Telecommunication Services - 6.5%
529,550 BellSouth Corporation 14,101,917
433,600 Nokia Oyj Sponsored ADR 7,124,048
379,916 Verizon Communications Inc. 14,987,685
- -------------------------------------------------------------------------------------------
Utilities - 5.2%
244,700 Entergy Corporation 12,915,266
201,850 FirstEnergy Corp. 7,761,133
194,250 Public Service Enterprise Group Incorporated 8,207,062
- -------------------------------------------------------------------------------------------
Total Common Stocks (cost $472,961,103) 548,035,494
-----------------------------------------------------------------------------
Principal Market
Amount (000) Description Value
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.0%
$ 11,419 State Street Bank Repurchase Agreement, 0.930%, stated 11,419,000
6/30/03, due 7/01/03, repurchase price $11,419,295,
collateralized by U.S. Treasury Bonds
- -------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $11,419,000) 11,419,000
-----------------------------------------------------------------------------
Total Investments (cost $484,380,103) - 100.1% 559,454,494
-----------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (342,704)
-----------------------------------------------------------------------------
Net Assets - 100% $ 559,111,790
-----------------------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
16
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
June 30, 2003
Market
Shares Description Value
- --------------------------------------------------------------------------------------
COMMON STOCKS - 44.1%
Consumer Discretionary - 8.3%
12,500 Carnival Corporation $ 406,375
24,200 Clear Channel Communications, Inc. # 1,025,838
39,725 Comcast Corporation - Class A # 1,198,901
8,893 Gannett Co., Inc. 683,071
4,500 Johnson Controls, Inc. 385,200
54,254 Koninklijke (Royal) Philips Electronics N.V. - New York Shares 1,036,794
128,500 Liberty Media Corporation - Class A # 1,485,460
14,900 Lowe's Companies, Inc. 639,955
30,517 Target Corporation 1,154,763
- --------------------------------------------------------------------------------------
Consumer Staples - 3.5%
13,600 The Clorox Company 580,040
29,400 Diageo plc Sponsored ADR 1,286,544
6,350 The Estee Lauder Companies Inc. - Class A 212,916
29,100 PepsiCo, Inc. 1,294,950
- --------------------------------------------------------------------------------------
Energy - 3.7%
20,745 ConocoPhillips 1,136,826
23,230 EnCana Corp. 891,335
12,650 Exxon Mobil Corporation 454,262
10,700 Noble Corporation # 367,010
20,050 Occidental Petroleum Corporation 672,678
- --------------------------------------------------------------------------------------
Financials - 10.1%
21,750 American International Group, Inc. 1,200,165
23,450 Bank of America Corporation 1,853,254
46,759 Citigroup Inc. 2,001,285
5,850 Fannie Mae 394,524
9,400 The Goldman Sachs Group, Inc. 787,250
36,750 MetLife, Inc. 1,040,760
61,609 Travelers Property Casualty Corp. - Class A 979,583
28,250 Wells Fargo & Company 1,423,800
- --------------------------------------------------------------------------------------
Healthcare - 4.4%
5,500 Anthem, Inc. # 424,325
32,050 HCA Inc. 1,026,882
5,000 McKesson Corporation 178,700
40,150 Pfizer Inc. 1,371,123
26,500 Wyeth 1,207,075
- --------------------------------------------------------------------------------------
Industrials - 6.0%
10,650 Caterpillar Inc. 592,779
69,150 Cendant Corporation # 1,266,828
43,544 General Electric Company 1,248,842
9,425 Northrop Grumman Corporation 813,283
21,150 Tyco International Ltd. 401,427
- ----
17
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued)
June 30, 2003
Market
Shares Description Value
- -------------------------------------------------------------------------------------
Industrials (continued)
13,800 Union Pacific Corporation $ 800,676
9,350 United Technologies Corporation 662,261
- -------------------------------------------------------------------------------------
Information Technology - 1.4%
25,800 Accenture Ltd. - Class A # 466,722
43,051 Hewlett-Packard Company 916,986
- -------------------------------------------------------------------------------------
Materials - 1.5%
15,250 Air Products and Chemicals, Inc. 634,400
3,700 Alcan Inc. 115,773
15,500 E. I. du Pont de Nemours and Company 645,419
- -------------------------------------------------------------------------------------
Telecommunication Services - 2.9%
41,050 BellSouth Corporation 1,093,162
34,900 Nokia Oyj Sponsored ADR 573,407
29,447 Verizon Communications Inc. 1,161,683
- -------------------------------------------------------------------------------------
Utilities - 2.3%
18,700 Entergy Corporation 986,986
15,600 FirstEnergy Corp. 599,820
15,050 Public Service Enterprise Group Incorporated 635,862
- -------------------------------------------------------------------------------------
Total Common Stocks (cost $36,414,051) 42,417,960
-----------------------------------------------------------------------------
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- --------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 54.6%
Alabama - 0.5%
$ 455 Alabama Water Pollution Control Authority, Revolving Fund 8/05 at 100.00 AAA 503,530
Loan Bonds, Series 1994A, 6.625%, 8/15/08 - AMBAC Insured
- --------------------------------------------------------------------------------------------------------------------
Arizona - 0.1%
140 Salt River Project Agricultural Improvement and Power 7/03 at 102.00 AA 143,259
District, Arizona, Electric System Revenue Refunding Bonds,
Salt River Project, Series 1993B, 5.250%, 1/01/11
- --------------------------------------------------------------------------------------------------------------------
California - 6.9%
2,495 City of Escondido, California, Multifamily Housing Revenue 7/05 at 101.50 AAA 2,673,892
Refunding Bonds, Series 1997B, Morning View Terrace
Apartments, 5.400%, 1/01/27 (Mandatory put 7/01/07)
735 Northern California Power Agency, Geothermal Project 3 No Opt. Call A- 826,699
Revenue Bonds, Series 1993, 5.650%, 7/01/07
250 Orange County, California, Refunding Recovery Bonds, Series No Opt. Call AAA 298,733
1995A, 6.000%, 6/01/10 - MBIA Insured
1,495 Palmdale Civic Authority, California, Revenue Bonds, Civic 7/07 at 102.00 AAA 1,677,495
Center Refinancing, Series 1997A, 5.375%, 7/01/12 - MBIA
Insured
1,000 San Diego County, California, Certificates of Participation, 9/09 at 101.00 Baa3 1,089,420
Burnham Institute, Series 1999, 5.700%, 9/01/11
- --------------------------------------------------------------------------------------------------------------------
Colorado - 3.9%
1,000 City and County of Denver, Colorado, Airport System Revenue 11/06 at 102.00 AAA 1,109,410
Bonds, Series 1996B, 5.625%, 11/15/08 (Alternative Minimum
Tax) - MBIA Insured
1,000 City and County of Denver, Colorado, Airport Special 1/09 at 101.00 AAA 1,142,820
Facilities Revenue Bonds, Rental Car Projects, Series 1999A,
6.000%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured
2,000 Metropolitan Football Stadium District, Colorado, Sales Tax No Opt. Call AAA 1,460,700
Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - MBIA Insured
- ----
18
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ----------------------------------------------------------------------------------------------------------------------
Connecticut - 3.6%
$ 1,075 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA $ 1,106,154
Finance Program Bonds, Series 1996B, Subseries B-2, 5.750%,
11/15/08 (Alternative Minimum Tax)
695 Connecticut Health and Educational Facilities Authority, No Opt. Call BBB 739,376
Revenue Bonds, Hospital for Special Care Issue, Series
1997B, 5.125%, 7/01/07
1,485 Connecticut Development Authority, First Mortgage Gross 12/06 at 103.00 BBB+ 1,574,946
Revenue Healthcare Project Refunding Bonds, Elim Park
Baptist Home, Inc. Project, Series 1998A, 4.875%, 12/01/07
- ----------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.6%
District of Columbia, General Obligation Refunding Bonds,
Series 1994A-1:
245 6.500%, 6/01/10 - MBIA Insured No Opt. Call AAA 303,273
255 6.500%, 6/01/10 - MBIA Insured No Opt. Call AAA 311,243
- ----------------------------------------------------------------------------------------------------------------------
Georgia - 1.4%
2,000 Fulton County Development Authority, Georgia, Special 5/08 at 101.00 BB- 1,312,620
Facilities Revenue Bonds, Delta Air Lines, Inc. Project,
Series 1998, 5.300%, 5/01/13 (Alternative Minimum Tax)
25 Georgia Housing and Finance Authority, Single Family Mortgage 6/06 at 102.00 AAA 25,310
Bonds, Series 1996A, Subseries A-2, 5.875%, 12/01/19
(Alternative Minimum Tax)
- ----------------------------------------------------------------------------------------------------------------------
Idaho - 0.8%
715 Idaho Housing and Finance Association, Single Family Mortgage 1/07 at 102.00 Aa3 759,144
Bonds, Series 1997D, 5.950%, 7/01/09 (Alternative Minimum
Tax)
- ----------------------------------------------------------------------------------------------------------------------
Illinois - 5.5%
1,075 Bolingbrook, Will and DuPage Counties, Illinois, Residential No Opt. Call AAA 1,309,866
Mortgage Revenue Bonds, Series 1979, 7.500%, 8/01/10 - FGIC
Insured
Illinois Development Finance Authority, Economic Development
Revenue Bonds, Latin School of Chicago Project, Series 1998:
270 5.200%, 8/01/11 8/08 at 100.00 Baa2 284,742
200 5.250%, 8/01/12 8/08 at 100.00 Baa2 210,248
580 5.300%, 8/01/13 8/08 at 100.00 Baa2 607,411
1,160 Illinois Health Facilities Authority, Revenue Bonds, St. 7/04 at 102.00 A-*** 1,253,218
Elizabeth's Hospital of Chicago, Inc., Series 1985, 7.250%,
7/01/05 (Pre-refunded to 7/01/04)
1,500 Illinois Health Facilities Authority, Revenue Bonds, OSF 11/03 at 102.00 A 1,541,565
Healthcare System, Series 1993, 6.000%, 11/15/10
50 Illinois Health Facilities Authority, FHA-Insured Mortgage 2/06 at 102.00 AAA 54,060
Revenue Bonds, Sinai Health System, Series 1996, 5.500%,
2/15/09 - AMBAC Insured
- ----------------------------------------------------------------------------------------------------------------------
Maine - 0.3%
255 Winslow, Maine, General Obligation Tax Increment Financing 3/07 at 102.00 AAA 292,278
Bonds, Crowe Rope Industries Project, Series 1997A, 6.000%,
3/01/11 (Alternative Minimum Tax) - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.9%
1,885 Massachusetts Development Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,762,381
Revenue Bonds, Ogden Haverhill Project, Series 1998B,
5.200%, 12/01/13 (Alternative Minimum Tax)
250 Massachusetts Health and Educational Facilities Authority, 7/06 at 102.00 AAA 285,938
Revenue Bonds, Melrose-Wakefield Healthcare Corporation
Issue, Series 1996C, 5.700%, 7/01/08 (Pre-refunded to
7/01/06)
730 Massachusetts Turnpike Authority, Western Turnpike Revenue 7/03 at 100.00 AAA 755,222
Bonds, Series 1997A, 5.550%, 1/01/17 - MBIA Insured
- ----------------------------------------------------------------------------------------------------------------------
Michigan - 0.4%
540 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- 397,202
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.000%, 8/15/13
- ----
19
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued)
June 30, 2003
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------
Mississippi - 1.9%
Jones County, Mississippi, Hospital Revenue Refunding Bonds,
South Central Regional Medical Center Project, Series 1997:
$ 1,285 5.350%, 12/01/10 12/07 at 100.00 BBB+ $ 1,333,290
500 5.400%, 12/01/11 12/07 at 100.00 BBB+ 514,605
- ---------------------------------------------------------------------------------------------------------------------
Nevada - 1.1%
1,030 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aa3 1,101,482
Mezzanine Series 1997B-1, 6.000%, 4/01/15 (Alternative
Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.6%
1,450 New Hampshire Higher Educational and Health Facilities 1/07 at 102.00 BBB- 1,515,729
Authority, Revenue Bonds, New Hampshire College, Series
1997, 6.200%, 1/01/12
- ---------------------------------------------------------------------------------------------------------------------
New York - 7.7%
1,000 City University of New York, New York, Certificates of No Opt. Call AA- 1,122,340
Participation, John Jay College of Criminal Justice Project
Refunding, Series 1995A, 6.000%, 8/15/06
500 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 576,260
Facilities Service Contract Bonds, Series 1993O, 5.750%,
7/01/07
250 New York City, New York, General Obligation Bonds, Fiscal 11/06 at 101.50 A 269,647
Series 1997D, 5.875%, 11/01/11
500 New York City, New York, General Obligation Bonds, Fiscal 4/07 at 101.00 A 559,445
Series 1997I, 6.000%, 4/15/09
1,000 New York City, New York, General Obligation Bonds, Fiscal 8/07 at 101.00 A 1,085,370
Series 1998D, 5.500%, 8/01/10
285 New York State Urban Development Corporation, State No Opt. Call AA- 318,046
Facilities Revenue Refunding Bonds, Series 1995, 6.250%,
4/01/06
1,700 New York State Urban Development Corporation, Project Revenue 7/03 at 102.00 AA- 1,739,134
Bonds, Cornell Center Grant, Series 1993, 5.900%, 1/01/07
1,430 New York State Urban Development Corporation, Youth No Opt. Call AA- 1,648,318
Facilities Service Contract Revenue Bonds, Series 1997,
6.500%, 4/01/07
- ---------------------------------------------------------------------------------------------------------------------
North Carolina - 2.2%
1,625 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,117,034
Revenue Bonds, Series 1980, 10.500%, 1/01/10
- ---------------------------------------------------------------------------------------------------------------------
Ohio - 3.3%
1,750 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, No Opt. Call BB+ 1,630,948
Emery Air Freight Corporation and Emery Worldwide Airlines,
Inc. - Guarantors, Series 1988C, 6.050%, 10/01/09
1,500 Lorain County, Ohio, Healthcare Facilities Revenue Refunding 2/08 at 101.00 BBB 1,503,225
Bonds, Kendal at Oberlin, Series 1998A, 5.375%, 2/01/12
- ---------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.2%
1,000 Oklahoma State Industries Authority, Health System Revenue No Opt. Call AAA 1,144,150
Refunding Bonds, INTEGRIS Baptist Medical Center, Series
1995D, 6.000%, 8/15/07 - AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.9%
760 Providence, Rhode Island, General Obligation Bonds, Series 7/07 at 101.00 AAA 881,478
1997A, 6.000%, 7/15/09 - FSA Insured
- ---------------------------------------------------------------------------------------------------------------------
South Carolina - 1.2%
1,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA- 1,127,180
Installment Purchase Revenue Bonds, Series 2002, 5.875%,
12/01/19
- ---------------------------------------------------------------------------------------------------------------------
Tennessee - 2.9%
2,700 Cookeville Industrial Development Board, Tennessee, Hospital 12/03 at 102.00 A-*** 2,807,703
Revenue Refunding Bonds, Cookeville General Hospital
Project, Series 1993, 5.750%, 10/01/10 (Pre-refunded to
12/01/03)
- ----
20
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------------
Texas - 2.6%
$ 2,000 Abilene Higher Education Authority, Inc., Texas, Student Loan 11/08 at 100.00 Aa3 $ 2,081,760
Revenue Bonds, Subordinate Series 1998B, 5.050%, 7/01/13
(Alternative Minimum Tax)
250 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/06 at 101.00 AAA 276,937
Series 1996, 5.700%, 7/01/09 (Alternative Minimum Tax) -
FGIC Insured
125 Texas Department of Housing, Single Family Mortgage Revenue 9/06 at 102.00 AAA 134,323
Bonds, Series 1996E, 5.750%, 3/01/10 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------------
Utah - 0.2%
200 Utah State Board of Regents, Student Loan Revenue Bonds, 11/05 at 102.00 AAA 215,377
Series 1995N, 6.000%, 5/01/08 (Alternative Minimum Tax) -
AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
Washington - 0.9%
800 Washington State Public Power Supply System, Revenue 7/06 at 102.00 AAA 907,735
Refunding Bonds, Project 3, Series 1996A, 5.700%, 7/01/09 -
AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------------
$ 50,200 Total Municipal Bonds (cost $50,380,361) 52,423,671
- ---------------------------------------------------------------------------------------------------------------------
- ------------
Total Long-Term Investments (cost $86,794,412) - 98.7% 94,841,631
-------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 1,286,424
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 96,128,055
-------------------------------------------------------------------------------------------------------
# Non-income producing security.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
***Securities are backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities which
ensures the timely payment of principal and interest. Such
securities are normally considered to be equivalent to AAA rated
securities.
See accompanying notes to financial statements.
- ----
21
Portfolio of Investments
NUVEEN BALANCED STOCK AND BOND FUND
June 30, 2003
Market
Shares Description Value
- --------------------------------------------------------------------------------------
COMMON STOCKS - 59.9%
Consumer Discretionary - 11.4%
11,550 Carnival Corporation $ 375,491
20,400 Clear Channel Communications, Inc. # 864,756
36,720 Comcast Corporation - Class A # 1,108,210
7,344 Gannett Co., Inc. 564,093
4,150 Johnson Controls, Inc. 355,240
48,111 Koninklijke (Royal) Philips Electronics N.V. - New York Shares 919,401
121,600 Liberty Media Corporation - Class A # 1,405,696
13,550 Lowe's Companies, Inc. 581,973
28,583 Target Corporation 1,081,581
- --------------------------------------------------------------------------------------
Consumer Staples - 4.8%
12,250 The Clorox Company 522,463
28,400 Diageo plc Sponsored ADR 1,242,784
9,650 The Estee Lauder Companies Inc. - Class A 144,179
25,800 PepsiCo, Inc. 1,148,100
- --------------------------------------------------------------------------------------
Energy - 4.9%
17,705 ConocoPhillips 970,234
20,592 EnCana Corp. 790,115
11,400 Exxon Mobil Corporation 409,374
9,650 Noble Corporation # 330,995
18,200 Occidental Petroleum Corporation 610,610
- --------------------------------------------------------------------------------------
Financials - 13.6%
19,400 American International Group, Inc. 1,070,492
20,300 Bank of America Corporation 1,604,309
42,074 Citigroup Inc. 1,800,767
5,200 Fannie Mae 350,688
8,950 The Goldman Sachs Group, Inc. 749,563
36,350 MetLife, Inc. 1,029,432
51,086 Travelers Property Casualty Corp. - Class A 812,267
25,200 Wells Fargo & Company 1,270,080
- --------------------------------------------------------------------------------------
Healthcare - 6.0%
5,100 Anthem, Inc. # 393,465
29,050 HCA Inc. 930,762
4,500 McKesson Corporation 160,830
36,450 Pfizer Inc. 1,244,768
23,800 Wyeth 1,084,090
- --------------------------------------------------------------------------------------
Industrials - 8.2%
9,550 Caterpillar Inc. 531,553
64,700 Cendant Corporation # 1,185,304
38,509 General Electric Company 1,104,438
7,925 Northrop Grumman Corporation 683,848
18,900 Tyco International Ltd. 358,722
- ----
22
Market
Shares Description Value
- -------------------------------------------------------------------------------------
Industrials (continued)
12,450 Union Pacific Corporation $ 722,349
8,613 United Technologies Corporation 610,059
- -------------------------------------------------------------------------------------
Information Technology - 1.9%
23,200 Accenture Ltd. - Class A # 419,688
37,351 Hewlett-Packard Company 795,576
- -------------------------------------------------------------------------------------
Materials - 2.0%
13,750 Air Products and Chemicals, Inc. 572,000
3,300 Alcan Inc. 103,257
13,800 E. I. du Pont de Nemours and Company 574,632
- -------------------------------------------------------------------------------------
Telecommunication Services - 4.0%
36,850 BellSouth Corporation 981,316
29,900 Nokia Oyj Sponsored ADR 491,257
26,397 Verizon Communications Inc. 1,041,361
- -------------------------------------------------------------------------------------
Utilities - 3.1%
16,850 Entergy Corporation 889,343
14,000 FirstEnergy Corp. 538,300
13,500 Public Service Enterprise Group Incorporated 570,374
- -------------------------------------------------------------------------------------
Total Common Stocks (cost $32,692,896) 38,100,185
-----------------------------------------------------------------------------
Principal Market
Amount (000) Description Value
- -------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 38.0%
U.S. Treasury Bonds - 7.6%
$ 2,650 7.250%, 5/15/16 3,525,123
1,095 6.000%, 2/15/26 1,309,253
- -------------------------------------------------------------------------------------------
U.S. Treasury Notes - 30.4%
2,225 4.750%, 2/15/04 2,277,583
3,000 7.875%, 11/15/04 3,275,040
2,885 6.500%, 5/15/05 3,164,937
2,840 7.000%, 7/15/06 3,283,307
3,225 4.750%, 11/15/08 3,576,099
3,215 5.750%, 8/15/10 3,764,190
- -------------------------------------------------------------------------------------------
$ 21,135 Total U.S. Government and Agency Obligations (cost 24,175,532
$21,722,077)
- -------------------------------------------------------------------------------------------
- ------------
SHORT-TERM INVESTMENTS - 2.0%
1,257 State Street Bank Repurchase Agreement, 0.930%, dated 1,257,000
6/30/03, due 7/01/03, repurchase price $1,257,032,
collateralized by U.S. Treasury Bonds
- -------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,257,000) 1,257,000
-----------------------------------------------------------------------------
Total Investments (cost $55,671,973) - 99.9% 63,532,717
-----------------------------------------------------------------------------
Other Assets Less Liabilities - 0.1% 61,985
-----------------------------------------------------------------------------
Net Assets - 100% $ 63,594,702
-----------------------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
23
Statement of Assets and Liabilities
June 30, 2003
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ----------------------------------------------------------------------------------------------------------------------
Assets
Investment securities, at market value (cost $29,927,722,
$484,380,103, $86,794,412 and $55,671,973, respectively) $33,210,970 $ 559,454,494 $ 94,841,631 $63,532,717
Cash 525 597 -- 937
Receivables:
Dividends and interest 59,058 322,011 1,030,800 340,805
Investments sold -- 4,829,973 1,438,054 334,431
Reclaims 837 226,103 14,500 19,258
Shares sold 80,591 573,710 5,184 155,929
Other assets 39,873 216,544 37,581 16,876
- ----------------------------------------------------------------------------------------------------------------------
Total assets 33,391,854 565,623,432 97,367,750 64,400,953
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- 369,506 --
Payables:
Investments purchased 1,209,689 4,870,015 377,322 367,231
Shares redeemed 15,948 442,875 187,489 44,902
Accrued expenses:
Management fees 22,559 388,470 56,513 38,369
12b-1 distribution and service fees 1,295 174,104 42,143 24,044
Other 24,282 636,178 87,666 69,451
Dividends payable -- -- 119,056 262,254
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 1,273,773 6,511,642 1,239,695 806,251
- ----------------------------------------------------------------------------------------------------------------------
Net assets $32,118,081 $ 559,111,790 $ 96,128,055 $63,594,702
- ----------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 4,732,438 $ 445,049,507 $ 59,780,397 $36,751,170
Shares outstanding 324,058 22,325,749 2,875,363 1,617,640
Net asset value per share $ 14.60 $ 19.93 $ 20.79 $ 22.72
Offering price per share (net asset value per share
plus maximum sales charge of 5.75% of offering price) $ 15.49 $ 21.15 $ 22.06 $ 24.11
- ----------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 192,864 $ 55,129,088 $ 26,533,815 $12,254,557
Shares outstanding 13,201 2,810,347 1,226,618 539,318
Net asset value and offering price per share $ 14.61 $ 19.62 $ 21.63 $ 22.72
- ----------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 415,691 $ 42,104,933 $ 9,083,269 $ 7,541,245
Shares outstanding 28,440 2,149,922 420,324 331,710
Net asset value and offering price per share $ 14.62 $ 19.58 $ 21.61 $ 22.73
- ----------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $26,777,088 $ 16,828,262 $ 730,574 $ 7,047,730
Shares outstanding 1,838,338 841,755 35,705 310,249
Net asset value and offering price per share $ 14.57 $ 19.99 $ 20.46 $ 22.72
- ----------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ----------------------------------------------------------------------------------------------------------------------
Capital paid-in $28,509,191 $ 605,727,719 $105,435,103 $62,778,118
Undistributed (Over-distribution of) net investment income 66,204 915,032 (7,029) (214,448)
Accumulated net realized gain (loss) from investments and
foreign currency transactions 259,438 (122,605,352) (17,347,238) (6,829,712)
Net unrealized appreciation of investments and translation
of assets and liabilities denominated in foreign currencies 3,283,248 75,074,391 8,047,219 7,860,744
- ----------------------------------------------------------------------------------------------------------------------
Net assets $32,118,081 $ 559,111,790 $ 96,128,055 $63,594,702
- ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
24
Statement of Operations
Large-Cap Municipal Stock and
Multi-Cap Value Value and Stock Bond
--------------------------- ------------- ------------ -----------
For the Period
4/01/03
through Year Ended Year Ended Year Ended Year Ended
6/30/03 3/31/03* 6/30/03 6/30/03 6/30/03
- ----------------------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign tax
withheld of $627, $1,945,
$155,959, $12,174 and $10,900,
respectively) $ 127,148 $ 439,207 $ 10,358,635 $ 767,570 $ 710,258
Interest 10,773 25,689 212,909 2,913,605 1,161,645
- ----------------------------------------------------------------------------------------------------------
Total investment income 137,921 464,896 10,571,544 3,681,175 1,871,903
- ----------------------------------------------------------------------------------------------------------
Expenses
Management fees 58,623 223,605 4,617,218 746,735 464,194
12b-1 service fees - Class A 1,598 267 1,101,894 152,741 92,928
12b-1 distribution and service
fees - Class B 223 15 559,605 283,752 118,052
12b-1 distribution and service
fees - Class C 289 5 423,351 93,707 69,747
Shareholders' servicing agent fees
and expenses 13,185 38,653 1,414,052 124,743 103,751
Custodian's fees and expenses 4,569 10,797 174,462 79,697 59,388
Trustees' fees and expenses 546 1,437 53,166 8,528 6,129
Professional fees 3,731 19,457 81,233 78,973 9,356
Shareholders' reports - printing
and mailing expenses 4,127 13,647 195,158 14,743 14,477
Federal and state registration fees 12,132 41,420 47,988 35,127 33,617
Other expenses 446 28,515 105,107 11,239 9,775
- ----------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 99,469 377,818 8,773,234 1,629,985 981,414
Custodian fee credit (96) (71) (174) (3,620) (349)
Expense reimbursement -- (58,034) -- (105,399) (81,642)
- ----------------------------------------------------------------------------------------------------------
Net expenses 99,373 319,713 8,773,060 1,520,966 899,423
- ----------------------------------------------------------------------------------------------------------
Net investment income 38,548 145,183 1,798,484 2,160,209 972,480
- ----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from
investments and foreign currency
transactions 122,796 304,040 (102,927,030) (10,792,040) (6,256,468)
Net change in unrealized
appreciation (depreciation) of
investments and translation of
assets and liabilities
denominated in foreign currencies 5,973,382 (5,274,898) 43,579,772 7,224,223 4,273,544
- ----------------------------------------------------------------------------------------------------------
Net gain (loss) 6,096,178 (4,970,858) (59,347,258) (3,567,817) (1,982,924)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations $6,134,726 $(4,825,675) $ (57,548,774) $ (1,407,608) $(1,010,444)
- ----------------------------------------------------------------------------------------------------------
* Information represents the operations of the PBHG Special Equity Fund prior
to the Reorganization and the Nuveen NWQ Multi-Cap Value Fund subsequent to
the Reorganization.
See accompanying notes to financial statements.
- ----
25
Statement of Changes in Net Assets
Multi-Cap Value
--------------------------------------------
For the Period For the Period
4/01/03 11/01/01
through Year Ended through
6/30/03 3/31/03* 3/31/02**
- -------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 38,548 $ 145,183 $ 76,255
Net realized gain (loss) from investments and foreign currency transactions 122,796 304,040 (162,163)
Net change in unrealized appreciation (depreciation) of investments
and translation of assets and liabilities denominated in foreign
currencies 5,973,382 (5,274,898) 3,795,008
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 6,134,726 (4,825,675) 3,709,100
- -------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A -- (4) --
Class B -- -- --
Class C -- -- --
Class R -- (210,892) (87,948)
From accumulated net realized gains from investments:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class R -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders -- (210,896) (87,948)
- -------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 5,366,743 10,856,508 6,476,191
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- 209,644 85,446
- -------------------------------------------------------------------------------------------------------------------------
5,366,743 11,066,152 6,561,637
Cost of shares redeemed (1,494,636) (9,423,469) (2,617,779)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 3,872,107 1,642,683 3,943,858
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 10,006,833 (3,393,888) 7,565,010
Net assets at the beginning of year 22,111,248 25,505,136 17,940,126
- -------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $32,118,081 $22,111,248 $25,505,136
- -------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end of
year $ 66,204 $ 27,656 $ 93,043
- -------------------------------------------------------------------------------------------------------------------------
Large-Cap Value
------------- ----------------------------
Year Ended Year Ended Year Ended
10/31/01*** 6/30/03 6/30/02
- -----------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 195,993 $ 1,798,484 $ 1,645,572
Net realized gain (loss) from investments and foreign currency transactions 5,544,021 (102,927,030) (4,527,420)
Net change in unrealized appreciation (depreciation) of investments
and translation of assets and liabilities denominated in foreign
currencies (5,123,564) 43,579,772 (98,703,834)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 616,450 (57,548,774) (101,585,682)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A -- (1,595,633) (2,099,538)
Class B -- -- --
Class C -- -- --
Class R (174,593) (101,587) (103,668)
From accumulated net realized gains from investments:
Class A -- -- --
Class B -- -- --
Class C -- -- --
Class R (4,885,084) -- --
- -----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (5,059,677) (1,697,220) (2,203,206)
- -----------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 13,322,437 87,633,689 99,540,377
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 5,020,199 1,104,303 1,334,197
- -----------------------------------------------------------------------------------------------------------------------
18,342,636 88,737,992 100,874,574
Cost of shares redeemed (30,242,303) (192,651,951) (121,869,916)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (11,899,667) (103,913,959) (20,995,342)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (16,342,894) (163,159,953) (124,784,230)
Net assets at the beginning of year 34,283,020 722,271,743 847,055,973
- -----------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 17,940,126 $ 559,111,790 $ 722,271,743
- -----------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end of
year $ 25,735 $ 915,032 $ 777,480
- -----------------------------------------------------------------------------------------------------------------------
* Information represents the changes in net assets of the PBHG Special Equity
Fund prior to the Reorganization and the Nuveen NWQ Multi-Cap Value Fund
subsequent to the Reorganization.
** Information represents the changes in net assets of the PBHG Special Equity
Fund and its predecessor fund, the NWQ Special Equity Portfolio (a series of
the UAM Funds, Inc.), prior to December 14, 2001.
*** Information represents the changes in net assets of the NWQ Special Equity
Portfolio (a series of the UAM Funds, Inc.).
See accompanying notes to financial statements.
- ----
26
Municipal and Stock
--------------------------
Year Ended Year Ended
6/30/03 6/30/02
- --------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 2,160,209 $ 3,118,265
Net realized gain (loss) from investments and foreign currency transactions (10,792,040) (6,224,529)
Net change in unrealized appreciation
(depreciation) of investments and translation of
assets and liabilities denominated in foreign
currencies 7,224,223 (8,156,217)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations (1,407,608) (11,262,481)
- --------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (1,755,276) (2,446,569)
Class B (376,218) (633,962)
Class C (123,905) (213,285)
Class R (24,004) (31,664)
From accumulated net realized gains from
investments:
Class A -- (217,873)
Class B -- (103,854)
Class C -- (35,252)
Class R -- (2,330)
- --------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to
shareholders (2,279,403) (3,684,789)
- --------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 5,250,088 7,285,855
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 1,560,296 2,446,400
- --------------------------------------------------------------------------------------------------------
6,810,384 9,732,255
Cost of shares redeemed (20,873,670) (23,555,735)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions (14,063,286) (13,823,480)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (17,750,297) (28,770,750)
Net assets at the beginning of year 113,878,352 142,649,102
- --------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 96,128,055 $113,878,352
- --------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net
investment income at the end of year $ (7,029) $ 111,424
- --------------------------------------------------------------------------------------------------------
Stock and Bond
--------------------------
Year Ended Year Ended
6/30/03 6/30/02
- -------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 972,480 $ 1,137,260
Net realized gain (loss) from investments and foreign currency transactions (6,256,468) 321,485
Net change in unrealized appreciation
(depreciation) of investments and translation of
assets and liabilities denominated in foreign
currencies 4,273,544 (5,293,191)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations (1,010,444) (3,834,446)
- -------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (737,489) (894,605)
Class B (145,321) (155,167)
Class C (89,537) (77,058)
Class R (137,291) (117,577)
From accumulated net realized gains from
investments:
Class A (104,998) (17,664)
Class B (33,635) (4,754)
Class C (19,497) (2,403)
Class R (16,128) (2,003)
- -------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to
shareholders (1,283,896) (1,271,231)
- -------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 9,965,412 9,952,978
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 850,593 836,884
- -------------------------------------------------------------------------------------------------------
10,816,005 10,789,862
Cost of shares redeemed (12,911,626) (10,866,105)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions (2,095,621) (76,243)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,389,961) (5,181,920)
Net assets at the beginning of year 67,984,663 73,166,583
- -------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 63,594,702 $ 67,984,663
- -------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net
investment income at the end of year $ (214,448) $ (128,827)
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
27
Notes to Financial Statements
1. General Information and Significant Accounting Policies
The Nuveen Investment Trust (the "Trust") is an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Trust is comprised of the Nuveen NWQ Multi-Cap Value Fund ("Multi-Cap Value"),
Nuveen Large-Cap Value Fund ("Large-Cap Value"), Nuveen Balanced Municipal and
Stock Fund ("Municipal and Stock") and Nuveen Balanced Stock and Bond Fund
("Stock and Bond") (collectively, the "Funds"). The Trust was organized as a
Massachusetts business trust in 1996.
After the close of business on December 6, 2002, Multi-Cap Value acquired all
of the net assets of the PBHG Special Equity Fund ("PBHG Fund") pursuant to a
Plan of Reorganization ("Reorganization") previously approved by the
shareholders of the PBHG Fund. The acquisition was accomplished by a one for
one tax-free exchange of Class R Shares of Multi-Cap Value for the 1,915,116
outstanding shares of the PBHG Fund on December 6, 2002. The PBHG Fund's net
assets of $22,711,952 at that date, including $1,704,328 of net unrealized
depreciation, were combined with Multi-Cap Value's net assets of $4,000 ($1,000
of each Class A, B, C and R shares). The aggregate net assets of Multi-Cap
Value immediately following the acquisition were $22,715,952. Multi-Cap Value
commenced operations on December 9, 2002. For accounting purposes, Multi-Cap
Value retained the performance and accounting history of the PBHG Fund and its
predecessor fund, the NWQ Special Equity Portfolio (a series of the UAM Funds,
Inc.). As part of the Reorganization, and as previously approved by the Board
of Trustees, Multi-Cap Value changed its fiscal year-end from March 31 to June
30 upon completion of the March 31, 2003 fiscal year-end.
Multi-Cap Value ordinarily invests at least 80% of its assets in equity
securities of companies with large, medium and small capitalizations that are
selected on an opportunistic basis in an attempt to provide long-term capital
appreciation.
Large-Cap Value invests primarily in a diversified portfolio of large and
mid-cap equities of domestic companies in an attempt to provide capital growth.
In addition to investments in equity securities, the Fund may invest in cash
equivalents and short-term fixed income investments in an attempt to preserve
capital, enhance returns or as a temporary defensive measure.
Municipal and Stock invests in a mix of equities and tax-exempt securities in
an attempt to provide capital growth, capital preservation and current
tax-exempt income. During temporary defensive periods, the Fund may invest any
percentage of its assets in temporary investments.
Stock and Bond invests in a mix of equities, taxable bonds and cash equivalents
in an attempt to provide capital growth, capital preservation and current
income. During temporary defensive periods, the Fund may invest any percentage
of its assets in temporary investments.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
Common stocks and other equity-type securities are valued at the last sales
price on the securities exchange or Nasdaq on which such securities are
primarily traded. Securities traded on a securities exchange or Nasdaq for
which there are no transactions on a given day or securities not listed on a
securities exchange or Nasdaq are valued at the most recent bid prices.
Effective April 14, 2003, the Funds began pricing securities traded on Nasdaq
at the Nasdaq Official Closing Price. The prices of fixed-income securities are
provided by a pricing service and based on the mean between the bid and asked
price. When price quotes are not readily available (which is usually the case
for municipal bonds), the pricing service establishes fair market value based
on prices of comparable securities. If it is determined that market prices for
a security are unavailable or inappropriate, the Board of Trustees of the
Funds, or its designee, may establish a fair value for the security. Short-term
securities are valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject
to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets with a current value at least equal to the amount
of the delayed delivery and/or when-issued purchase commitments. At June 30,
2003, there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Dividend income is recorded on the ex-dividend date. Interest income, which
includes amortization of premiums and accretion of discounts for financial
reporting purposes, is recorded on an accrual basis.
Dividends and Distributions to Shareholders
Net ordinary taxable income is declared and distributed to shareholders
annually for Multi-Cap Value, Large-Cap Value, and Municipal and Stock, and
quarterly for Stock and Bond. Tax-exempt net investment income is declared and
distributed to shareholders monthly for Municipal and Stock. Net realized
capital gains from investment transactions, if any, are declared and
distributed to shareholders not less frequently than annually. Furthermore,
capital gains are distributed only to the extent they exceed available capital
loss carryforwards.
- ----
28
Distributions to shareholders of ordinary taxable income, tax-exempt net
investment income and net realized capital gains, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from
accounting principles generally accepted in the United States.
Federal Income Taxes
Each Fund intends to distribute all income and capital gains to shareholders
and to otherwise comply with the requirements of Subchapter M of the Internal
Revenue Code applicable to regulated investment companies. Therefore, no
federal tax provision is required. In addition, Municipal and Stock intends to
satisfy conditions which will enable interest from municipal obligations, which
is exempt from regular federal income tax when received by the Fund, to qualify
as exempt-interest dividends when distributed to shareholders of the Fund. All
monthly tax-exempt income dividends paid by Municipal and Stock during the
fiscal year ended June 30, 2003, have been designated Exempt Interest
Dividends. Net realized capital gains and ordinary income distributions made by
the Funds are subject to federal taxation.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur a .25% annual 12b-1 service fee. Class A Share purchases
of $1 million or more are sold at net asset value without an up-front sales
charge but may be subject to a contingent deferred sales charge ("CDSC") if
redeemed within 18 months of purchase. Class B Shares are sold without a sales
charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1
service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up
to 5% depending upon the length of time the shares are held by the investor
(CDSC is reduced to 0% at the end of six years). Class B Shares convert to
Class A Shares eight years after purchase. Class C Shares are sold without a
sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual
12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC
of 1% if Class C Shares are redeemed within one year of purchase. Class R
Shares are not subject to any sales charge or 12b-1 distribution or service
fees. Class R Shares are available for purchase only under limited
circumstances.
Derivative Financial Instruments
The Funds may invest in options, forward and futures contracts, which are
sometimes referred to as derivative transactions. Although the Funds are
authorized to invest in such financial instruments, and may do so in the
future, they did not make any such investments during the fiscal year ended
June 30, 2003.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Funds'
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 by the Funds may be delayed or limited.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently
only include 12b-1 distribution and service fees, are recorded to the specific
class.
Foreign Currency Translations
To the extent that each Fund invests in securities that are denominated in a
currency other than U.S. dollars, each 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 investment in
securities denominated in that currency will lose value because its currency is
worth fewer U.S. dollars; the opposite effect occurs if U.S. dollars fall 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 are included with net realized and unrealized
gain (loss) on investments.
Foreign Currency Transactions
The Funds may engage in foreign currency exchange transactions in connection
with their portfolio investments and assets and liabilities denominated in
foreign currencies. Each Fund may engage in foreign currency forward, options
and futures contracts. Each Fund will enter into foreign currency transactions
for hedging and other permissible risk management purposes only. If the Fund
invests in a currency futures or options contract, it must make a margin
deposit to secure performance of such contract. With respect to investments in
currency futures contracts, each Fund may also be required to make a variation
margin deposit because the value of futures contracts fluctuates daily. In
addition, each Fund may segregate assets to cover its futures contracts
obligations.
The objective of each Fund's foreign currency hedging transactions is to reduce
the risk that the U.S. dollar value of the Fund's foreign currency denominated
securities and other assets and liabilities will decline in value due to
changes in foreign currency exchange rates. All foreign currency forward
contracts, options and futures transactions are "marked-to-market" daily at the
applicable market rates and any resulting unrealized gains or losses are
recorded in the Fund's financial statements. Each Fund
- ----
29
Notes to Financial Statements (continued)
records realized gains and losses at the time the forward contract is offset by
entering into a closing transaction or extinguished by delivery of the
currency. The contractual amounts of forward foreign currency exchange
contracts does not necessarily represent the
amounts potentially subject to risk. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The measurement of the risks associated
with these instruments is meaningful only when all related and offsetting
transactions are considered. As of June 30, 2003, there were no open foreign
currency forward, options or futures contracts.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
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 from operations during the reporting
period. Actual results may differ from those estimates.
2. Fund Shares
Transactions in Fund shares were as follows:
Multi-Cap Value
---------------------------------------------------------------------------------------------
For the Period For the Period
4/01/03 through Year Ended 11/01/01 Year Ended
6/30/03 3/31/03* through 3/31/02** 10/31/01***
--------------------- --------------------- --------------------- ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 300,816 $ 4,078,246 54,681 $ 658,284 -- $ -- -- $ --
Class B 12,529 177,169 1,703 20,270 -- -- -- --
Class C 28,279 398,477 161 1,993 -- -- -- --
Class R 51,612 712,851 791,727 10,175,961 495,851 6,476,191 1,006,130 13,322,437
Shares issued to shareholders due
to reinvestment of distributions:
Class A -- -- -- -- -- -- -- --
Class B -- -- -- -- -- -- -- --
Class C -- -- -- -- -- -- -- --
Class R -- -- 17,874 209,644 6,753 85,446 411,447 5,020,199
- ---------------------------------------------------------------------------------------------------------------------------------
393,236 5,366,743 866,146 11,066,152 502,604 6,561,637 1,417,577 18,342,636
- ---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (2,271) (33,729) (29,168) (333,415) -- -- -- --
Class B (1,031) (15,063) -- -- -- -- -- --
Class C -- -- -- -- -- -- -- --
Class R (107,396) (1,445,844) (747,605) (9,090,054) (201,039) (2,617,779) (2,531,829) (30,242,303)
- ---------------------------------------------------------------------------------------------------------------------------------
(110,698) (1,494,636) (776,773) (9,423,469) (201,039) (2,617,779) (2,531,829) (30,242,303)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 282,538 $ 3,872,107 89,373 $ 1,642,683 301,565 $ 3,943,858 (1,114,252) $(11,899,667)
- ---------------------------------------------------------------------------------------------------------------------------------
* Information represents the share transactions of the PBHG Special Equity
Fund prior to the Reorganization and the Nuveen NWQ Multi-Cap Value Fund
subsequent to the Reorganization.
** Information represents the share transactions of the PBHG Special Equity
Fund and its predecessor fund, the NWQ Special Equity Portfolio (a series of
the UAM Funds, Inc.), prior to December 14, 2001.
*** Information represents the share transactions of the NWQ Special Equity
Portfolio (a series of the UAM Funds, Inc.).
- ----
30
Large-Cap Value
-----------------------------------------------------
Year Ended Year Ended
6/30/03 6/30/02
-------------------------- -------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Shares sold:
Class A 4,207,565 $ 79,548,065 3,702,627 $ 83,102,447
Class B 158,627 2,892,232 284,665 6,505,287
Class C 147,901 2,701,226 324,865 7,429,027
Class R 135,048 2,492,166 107,997 2,503,616
Shares issued to shareholders due to reinvestment
of distributions:
Class A 56,950 1,011,999 51,884 1,238,637
Class B -- -- -- --
Class C -- -- -- --
Class R 5,186 92,304 3,985 95,560
- --------------------------------------------------------------------------------------------------------
4,711,277 88,737,992 4,476,023 100,874,574
- --------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (9,012,293) (165,771,964) (4,263,775) (97,445,875)
Class B (812,265) (14,625,530) (586,716) (13,292,592)
Class C (551,070) (10,003,415) (413,987) (9,412,671)
Class R (119,887) (2,251,042) (74,920) (1,718,778)
- --------------------------------------------------------------------------------------------------------
(10,495,515) (192,651,951) (5,339,398) (121,869,916)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (5,784,238) $(103,913,959) (863,375) $ (20,995,342)
- --------------------------------------------------------------------------------------------------------
Municipal and Stock
-----------------------------------------------------
Year Ended Year Ended
6/30/03 6/30/02
-------------------------- -------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Shares sold:
Class A 142,491 $ 2,862,426 142,944 $ 3,283,182
Class B 83,564 1,746,943 116,967 2,748,025
Class C 30,486 635,325 50,634 1,204,597
Class R 272 5,394 2,238 50,051
Shares issued to shareholders due to reinvestment
of distributions:
Class A 64,593 1,296,853 83,251 1,914,611
Class B 8,867 185,391 16,120 382,411
Class C 3,181 66,407 5,434 128,819
Class R 589 11,645 902 20,559
- --------------------------------------------------------------------------------------------------------
334,043 6,810,384 418,490 9,732,255
- --------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (510,378) (10,252,753) (591,590) (13,405,972)
Class B (404,586) (8,425,050) (277,398) (6,481,651)
Class C (102,874) (2,153,778) (145,130) (3,374,387)
Class R (2,120) (42,089) (13,032) (293,725)
- --------------------------------------------------------------------------------------------------------
(1,019,958) (20,873,670) (1,027,150) (23,555,735)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (685,915) $(14,063,286) (608,660) $(13,823,480)
- --------------------------------------------------------------------------------------------------------
- ----
31
Notes to Financial Statements (continued)
Stock and Bond
----------------------------------------------
Year Ended Year Ended
6/30/03 6/30/02
---------------------- ----------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Shares sold:
Class A 92,214 $ 1,974,090 146,498 $ 3,597,006
Class B 145,087 3,126,202 158,114 3,869,007
Class C 135,588 2,921,125 81,985 2,016,810
Class R 90,794 1,943,995 19,187 470,155
Shares issued to shareholders due to reinvestment
of distributions:
Class A 26,783 579,697 24,934 616,596
Class B 4,273 92,319 3,188 78,788
Class C 1,872 40,469 1,310 32,404
Class R 6,406 138,108 4,413 109,096
- -------------------------------------------------------------------------------------------------
503,017 10,816,005 439,629 10,789,862
- -------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (328,507) (7,099,492) (286,319) (7,048,829)
Class B (166,673) (3,566,168) (89,617) (2,194,867)
Class C (90,332) (1,947,079) (55,955) (1,364,526)
Class R (13,762) (298,887) (10,604) (257,883)
- -------------------------------------------------------------------------------------------------
(599,274) (12,911,626) (442,495) (10,866,105)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) (96,257) $ (2,095,621) (2,866) $ (76,243)
- -------------------------------------------------------------------------------------------------
3. Securities Transactions
Purchases and sales (excluding short-term investments) of investment securities
and U.S. Government and agency obligations for the fiscal year ended June 30,
2003, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value* Value and Stock Bond
- -----------------------------------------------------------------------------------------
Purchases:
Investment securities $6,486,605 $495,320,667 $37,495,827 $35,549,632
U.S. Government and agency obligations -- -- -- 5,422,943
Sales and maturities:
Investment securities 3,309,362 592,282,812 52,262,369 37,268,217
U.S. Government and agency obligations -- -- -- 5,446,297
- -----------------------------------------------------------------------------------------
*For the period April 1, 2003 through June 30, 2003.
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 timing differences in recognizing income on taxable market
discount securities, amortization of premium on debt securities, and timing
differences in recognizing certain gains and losses on security transactions.
At June 30, 2003, the cost of investments were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ---------------------------------------------------------------------
Cost of investments $29,974,148 $491,559,064 $87,155,899 $56,381,282
- ---------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2003, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ----------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 4,273,901 $ 83,455,487 $ 9,725,631 $7,987,573
Depreciation (1,037,079) (15,560,057) (2,039,899) (836,138)
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $ 3,236,822 $ 67,895,430 $ 7,685,732 $7,151,435
- ----------------------------------------------------------------------------------------------
- ----
32
The tax components of undistributed net investment income and net realized
gains at June 30, 2003, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ---------------------------------------------------------------------------------
Undistributed net tax-exempt income $ -- $ -- $ -- $ --
Undistributed net ordinary income* 763,877 878,744 108,157 266,366
Undistributed net long-term capital gains -- -- -- --
- ---------------------------------------------------------------------------------
* Net ordinary income consists of taxable income derived from dividends,
interest, market discount accretion and net short-term capital gains, if any.
The tax character of Multi-Cap Value's distributions paid during the fiscal
years ended March 31, 2003 and March 31, 2002, was designated for purposes of
the dividends paid deduction as follows:
Multi-Cap
2003 Value
- -----------------------------------------------------------------------------------
Distributions from net ordinary income* $210,896
Distributions from net long-term capital gains --
- -----------------------------------------------------------------------------------
Multi-Cap
2002 Value
- -----------------------------------------------------------------------------------
Distributions from net ordinary income* $79,404
Distributions from net long-term capital gains --
Return of capital 8,543
- -----------------------------------------------------------------------------------
* Net ordinary income includes net short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended June 30,
2003 and June 30, 2002, was designated for purposes of the dividends paid
deduction as follows:
Multi-Cap Large-Cap Municipal Stock and
2003 Value Value and Stock Bond
- -----------------------------------------------------------------------------------------
Distributions from net tax-exempt income $-- $ -- $1,717,781 $ --
Distributions from net ordinary income* -- 1,697,220 623,033 1,159,839
Distributions from net long-term capital gains -- -- -- 173,874
- -----------------------------------------------------------------------------------------
Large-Cap Municipal Stock and
2002 Value and Stock Bond
- --------------------------------------------------------------------------------
Distributions from net tax-exempt income $ -- $2,841,543 $ --
Distributions from net ordinary income* 2,203,206 564,209 1,245,557
Distributions from net long-term capital gains -- 359,308 26,824
- --------------------------------------------------------------------------------
* Net ordinary income consists of taxable income derived from dividends,
interest, market discount accretion and net short-term capital gains, if any.
At June 30, 2003, the Funds had unused capital loss carryforwards available for
federal income tax purposes to be applied against future capital gains, if any.
If not applied the carryforwards will expire as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
-------------------------------------------------------------
Expiration year:
2009 $ -- $ 8,847,575 $ -- $ --
2010 -- 4,045,175 368,520 --
2011 391,803 74,180,551 10,907,448 4,388,763
-------------------------------------------------------------
Total $391,803 $87,073,301 $11,275,968 $4,388,763
-------------------------------------------------------------
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2002 through June 30, 2003 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following fiscal year:
Large-Cap Municipal Stock and
Value and Stock Bond
-----------------------------------
$28,353,091 $5,705,910 $1,950,195
-----------------------------------
- ----
33
Notes to Financial Statements (continued)
5. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with Nuveen Institutional
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. (formerly, The John Nuveen Company), each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets of each Fund as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
--------------------------------------------------------------------------
For the first $125 million .8500% .8500% .7500% .7500%
For the next $125 million .8375 .8375 .7375 .7375
For the next $250 million .8250 .8250 .7250 .7250
For the next $500 million .8125 .8125 .7125 .7125
For the next $1 billion .8000 .8000 .7000 .7000
For net assets over $2 billion .7750 .7750 .6750 .6750
--------------------------------------------------------------------------
Prior to the Reorganization of Multi-Cap Value, the PBHG Fund paid a management
fee of 1.00% of average daily net assets.
The Adviser has agreed to waive part of its management fees or reimburse
certain expenses of Multi-Cap Value through December 7, 2004, in order to limit
total operating expenses (excluding 12b-1 distribution and service fees and
extraordinary expenses) from exceeding 1.50% of the average daily net assets.
Prior to the Reorganization, the PBHG Fund had an expense limitation of 1.25%
of average daily net assets through September 25, 2002 and 1.50% of average
daily net assets after September 25, 2002.
The Adviser has agreed to waive part of its management fees and reimburse
certain expenses of Large-Cap Value, Municipal and Stock, and Stock and Bond
through July 31, 2004, in order to limit total operating expenses (excluding
12b-1 distribution or service fees and extraordinary expenses) from exceeding
1.20%, 1.00%, and 1.00%, respectively, of the average daily net assets.
The Adviser may also voluntarily agree to reimburse additional expenses from
time to time, in any of the Funds. Voluntary reimbursements may be terminated
at any time at the Adviser's discretion.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Adviser has entered
into Sub-Advisory Agreements with NWQ Investment Management Company, LLC
("NWQ"), a wholly owned subsidiary of Nuveen Investments, Inc., and
Institutional Capital Corporation ("ICAP"), in which Nuveen Investments, Inc.
holds a minority interest. NWQ manages the investment portfolio of Multi-Cap
Value. ICAP manages the investment portfolios of Large-Cap Value, and Stock and
Bond, as well as the equity portion of Municipal and Stock's investment
portfolio. NWQ and ICAP are compensated for the services from the management
fee paid to the Adviser.
The Trust 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 Trust from the Adviser.
During the fiscal year ended June 30, 2003, Nuveen Investments, LLC (the
"Distributor") (formerly, Nuveen Investments), a wholly owned subsidiary of
Nuveen Investments, Inc. collected sales charges on purchases of Class A
Shares, the majority of which were paid out as concessions to authorized
dealers as follows:
Multi-Cap Large-Cap Municipal Stock and
Value* Value and Stock Bond
------------------------------------------------------------------------------
Sales charges collected (unaudited) $3,289 $88,670 $74,230 $22,094
Paid to authorized dealers (unaudited) 2,860 88,115 65,693 19,306
------------------------------------------------------------------------------
* For the period April 1, 2003 through June 30, 2003.
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the fiscal year ended June 30, 2003, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
Multi-Cap Large-Cap Municipal Stock and
Value* Value and Stock Bond
-----------------------------------------------------------------------
Commission advances (unaudited) $6,885 $54,045 $27,441 $44,308
-----------------------------------------------------------------------
* For the period April 1, 2003 through June 30, 2003.
- ----
34
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase,
all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service
and distribution fees collected on Class C Shares during the first year
following a purchase are retained by the Distributor. During the fiscal year
ended June 30, 2003, the Distributor retained such 12b-1 fees as follows:
Multi-Cap Large-Cap Municipal Stock and
Value* Value and Stock Bond
-----------------------------------------------------------------------
12b-1 fees retained (unaudited) $523 $458,100 $220,751 $111,817
-----------------------------------------------------------------------
* For the period April 1, 2003 through June 30, 2003.
The remaining 12b-1 fees charged to the Funds were paid to compensate
authorized dealers for providing services to shareholders relating to their
investments.
The Distributor also collected and retained CDSC on share redemptions during
the fiscal year ended June 30, 2003, as follows:
Multi-Cap Large-Cap Municipal Stock and
Value* Value and Stock Bond
-----------------------------------------------------------------
CDSC retained (unaudited) $-- $213,803 $131,660 $59,108
-----------------------------------------------------------------
* For the period April 1, 2003 through June 30, 2003.
6. Investment Composition
At June 30, 2003, the sector classifications of securities held in the
portfolio of investments expressed as a percent of total investments were as
follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
-----------------------------------------------------------------------------
Consumer Discretionary 4% 19% 8% 11%
Consumer Staples 5 8 4 5
Education and Civic Organizations -- -- 8 --
Energy 10 8 4 5
Financials 30 22 10 14
Healthcare 4 10 10 6
Housing/Multifamily -- -- 3 --
Housing/Single Family -- -- 3 --
Industrials 6 13 6 8
Information Technology 17 3 1 2
Long-Term Care -- -- 3 --
Materials 9 3 1 2
Tax Obligation/General -- -- 4 --
Tax Obligation/Limited -- -- 9 --
Telecommunication Services 5 6 3 4
Transportation -- -- 7 --
U.S. Guaranteed 9 3 9 40
Utilities 1 5 6 3
Water and Sewer -- -- 1 --
----------------------------------------------------------------------------
100% 100% 100% 100%
----------------------------------------------------------------------------
38% of the municipal bonds owned by Municipal and Stock are either covered by
insurance issued by several private insurers or are backed by an escrow or
trust containing U.S. Government or U.S. Government agency securities, either
of which ensure the timely payment of principal and interest in the event of
default. Such insurance or escrow, however, does not guarantee the market value
of the municipal securities or the value of any of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7. Subsequent Event - Distributions to Shareholders
Municipal and Stock declared a dividend distribution from its tax-exempt net
investment income which was paid on August 1, 2003, to shareholders of record
on July 9, 2003, as follows:
Municipal
and Stock
-----------------------------
Dividend per share:
Class A $.0300
Class B .0185
Class C .0185
Class R .0335
- --------------------------------------------------------------------------------
- ----
35
Financial Highlights
Selected data for a share outstanding throughout each period:
Class (Inception Date)
Investment Operations Less Distributions
----------------------------- ------------------------
MULTI-CAP VALUE
Net
Realized/
Net Unrealized
Beginning Invest- Invest- Net Ending
Net ment ment Invest- Net
Asset Income Gain ment Capital Asset Total
Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b)
- --------------------------------------------------------------------------------------------------------------------------
Class A (12/02)
4/01/03- 6/30/03 $11.54 $ .02 $ 3.04 $ 3.06 $ -- $ -- $ -- $14.60 26.52%
12/09/02- 3/31/03 11.86 -- (.27) (.27) (.05) -- (.05) 11.54 (2.26)
Class B (12/02)
4/01/03- 6/30/03 11.58 -- 3.03 3.03 -- -- -- 14.61 26.17
12/09/02- 3/31/03 11.86 (.04) (.24) (.28) -- -- -- 11.58 (2.36)
Class C (12/02)
4/01/03- 6/30/03 11.58 (.01) 3.05 3.04 -- -- -- 14.62 26.25
12/09/02- 3/31/03 11.86 (.02) (.26) (.28) -- -- -- 11.58 (2.36)
Class R (11/97)
4/01/03- 6/30/03 11.51 .02 3.04 3.06 -- -- -- 14.57 26.59
Year Ended 3/31:
2003(f) 13.92 .08 (2.38) (2.30) (.11) -- (.11) 11.51 (16.52)
11/01/01- 3/31/02(g) 11.73 .05 2.20 2.25 (.06) -- (.06) 13.92 19.20
Year Ended 10/31:
2001(h) 13.28 .08 .09 .17 (.06) (1.66) (1.72) 11.73 1.23
2000(h) 11.84 .07 1.55 1.62 (.07) (.11) (.18) 13.28 13.80
1999(h) 10.01 .03 1.88 1.91 (.03) (.05) (.08) 11.84 19.33
11/04/97- 10/31/98(i) 10.00 .02 (.01) .01 -- -- -- 10.01 .10
- --------------------------------------------------------------------------------------------------------------------------
Class (Inception Date)
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MULTI-CAP VALUE ------------------ ------------------ ------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
ment ment ment
Ratio of Income Ratio of Income Ratio of Income
Expenses (Loss) Expenses (Loss) Expenses (Loss)
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
(000) Assets Assets Assets Assets Assets Assets Rate
- ----------------------------------------------------------------------------------------------------------------------
Class A (12/02)
4/01/03- 6/30/03 $ 4,732 1.66%* .59%* 1.66%* .59%* 1.66%* .60%* 13%
12/09/02- 3/31/03 294 1.78* (.07)* 1.75* (.04)* 1.75* (.04)* 52
Class B (12/02)
4/01/03- 6/30/03 193 2.43* (.08)* 2.43* (.08)* 2.43* (.08)* 13
12/09/02- 3/31/03 20 3.29* (1.95)* 2.50* (1.16)* 2.50* (1.16)* 52
Class C (12/02)
4/01/03- 6/30/03 416 2.44* (.33)* 2.44* (.33)* 2.44* (.33)* 13
12/09/02- 3/31/03 2 2.50* (.62)* 2.50* (.62)* 2.50* (.62)* 52
Class R (11/97)
4/01/03- 6/30/03 26,777 1.41* .56* 1.41* .56* 1.41* .56* 13
Year Ended 3/31:
2003(f) 21,795 1.61 .37 1.36 .62 1.36 .62 52
11/01/01- 3/31/02(g) 25,505 2.21* (.10)* 1.25* .86* 1.25* .86* 14
Year Ended 10/31:
2001(h) 16,996 1.54 .25 1.25 .54 1.25 .54 66
2000(h) 29,547 1.66 .09 1.15 .60 1.15 .60 49
1999(h) 16,406 1.70 (.22) 1.22 .26 1.22 .26 26
11/04/97- 10/31/98(i) 14,167 1.98* (.41)* 1.16* .42* 1.16* .42* 23
- ----------------------------------------------------------------------------------------------------------------------
* Annualized.
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
(f) Information represents the performance history of the PBHG Special Equity
Fund prior to the Reorganization and the Nuveen NWQ Multi-Cap Value Fund
subsequent to the Reorganization.
(g) Information represents the performance history of the PBHG Special Equity
Fund and its predecessor fund, the NWQ Special Equity Portfolio (a series
of the UAM Funds, Inc.), prior to December 14, 2001.
(h) Information represents the performance history of the NWQ Special Equity
Portfolio (a series of the UAM Funds, Inc.).
(i) The NWQ Special Equity Portfolio (a series of the UAM Funds, Inc.)
commenced performance history on November 4, 1997.
See accompanying notes to financial statements.
- ----
36
Selected data for a share outstanding throughout each year:
Class (Inception Date)
Investment Operations Less Distributions
----------------------------- ------------------------
LARGE-CAP VALUE
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended June 30, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- ---------------------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $21.35 $ .08 $(1.43) $(1.35) $(.07) $ -- $ (.07) $19.93 (6.28)%
2002 24.40 .08 (3.06) (2.98) (.07) -- (.07) 21.35 (12.23)
2001 24.35 .16 2.49 2.65 (.21) (2.39) (2.60) 24.40 11.02
2000 27.07 .22 (1.62) (1.40) (.25) (1.07) (1.32) 24.35 (5.33)
1999 26.50 .19 2.64 2.83 (.04) (2.22) (2.26) 27.07 12.37
Class B (8/96)
2003 21.08 (.06) (1.40) (1.46) -- -- -- 19.62 (6.93)
2002 24.19 (.10) (3.01) (3.11) -- -- -- 21.08 (12.86)
2001 24.17 (.03) 2.46 2.43 (.02) (2.39) (2.41) 24.19 10.23
2000 26.87 .03 (1.60) (1.57) (.06) (1.07) (1.13) 24.17 (5.97)
1999 26.47 .01 2.61 2.62 -- (2.22) (2.22) 26.87 11.52
Class C (8/96)
2003 21.04 (.06) (1.40) (1.46) -- -- -- 19.58 (6.94)
2002 24.16 (.10) (3.02) (3.12) -- -- -- 21.04 (12.91)
2001 24.13 (.03) 2.47 2.44 (.02) (2.39) (2.41) 24.16 10.24
2000 26.84 .03 (1.61) (1.58) (.06) (1.07) (1.13) 24.13 (5.97)
1999 26.43 .01 2.62 2.63 -- (2.22) (2.22) 26.84 11.58
Class R (8/96)
2003 21.41 .13 (1.43) (1.30) (.12) -- (.12) 19.99 (5.99)
2002 24.46 .13 (3.05) (2.92) (.13) -- (.13) 21.41 (11.98)
2001 24.41 .22 2.49 2.71 (.27) (2.39) (2.66) 24.46 11.24
2000 27.14 .28 (1.62) (1.34) (.32) (1.07) (1.39) 24.41 (5.13)
1999 26.52 .24 2.67 2.91 (.07) (2.22) (2.29) 27.14 12.71
- ---------------------------------------------------------------------------------------------------------------------
Class (Inception Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
LARGE-CAP VALUE ----------------- ----------------- -----------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended June 30, (000) Assets Assets Assets Assets Assets Assets Rate
- -----------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $445,050 1.45% .45% 1.45% .45% 1.45% .45% 90%
2002 577,946 1.36 .33 1.36 .33 1.36 .33 81
2001 672,917 1.34 .62 1.33 .63 1.32 .64 90
2000 669,651 1.34 .82 1.30 .85 1.30 .86 155
1999 793,546 1.28 .72 1.24 .76 1.24 .76 134
Class B (8/96)
2003 55,129 2.21 (.31) 2.21 (.31) 2.21 (.31) 90
2002 73,011 2.11 (.42) 2.11 (.42) 2.11 (.42) 81
2001 91,117 2.09 (.13) 2.08 (.11) 2.07 (.11) 90
2000 93,275 2.09 .08 2.06 .11 2.05 .12 155
1999 95,174 2.03 (.01) 1.99 .03 1.99 .03 134
Class C (8/96)
2003 42,105 2.21 (.31) 2.21 (.31) 2.21 (.31) 90
2002 53,729 2.11 (.42) 2.11 (.42) 2.11 (.42) 81
2001 63,835 2.09 (.14) 2.07 (.13) 2.07 (.12) 90
2000 55,303 2.11 .06 2.07 .09 2.05 .10 155
1999 41,071 2.02 .01 1.98 .04 1.98 .04 134
Class R (8/96)
2003 16,828 1.20 .70 1.20 .70 1.20 .70 90
2002 17,585 1.11 .58 1.11 .58 1.11 .58 81
2001 19,188 1.09 .86 1.08 .88 1.07 .88 90
2000 17,604 1.10 1.06 1.06 1.09 1.05 1.10 155
1999 16,904 1.03 .96 .99 1.00 .99 1.00 134
- -----------------------------------------------------------------------------------------------------------
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
See accompanying notes to financial statements.
- ----
37
Financial Highlights (continued)
Selected data for a share outstanding throughout each year:
Class (Inception Date)
Investment Operations Less Distributions
---------------------------- ------------------------
MUNICIPAL and STOCK
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended June 30, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- ----------------------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $21.45 $.49 $ (.57) $ (.08) $(.58) $ -- $ (.58) $20.79 (.25)%
2002 24.15 .61 (2.54) (1.93) (.71) (.06) (.77) 21.45 (8.11)
2001 24.31 .73 1.09 1.82 (.85) (1.13) (1.98) 24.15 7.60
2000 25.45 .74 (.96) (.22) (.81) (.11) (.92) 24.31 (.83)
1999 25.46 .62 .70 1.32 (.65) (.68) (1.33) 25.45 5.49
Class B (8/96)
2003 22.14 .36 (.60) (.24) (.27) -- (.27) 21.63 (1.01)
2002 24.74 .45 (2.60) (2.15) (.39) (.06) (.45) 22.14 (8.78)
2001 24.70 .56 1.10 1.66 (.49) (1.13) (1.62) 24.74 6.85
2000 25.65 .57 (.97) (.40) (.44) (.11) (.55) 24.70 (1.57)
1999 25.53 .46 .68 1.14 (.34) (.68) (1.02) 25.65 4.71
Class C (8/96)
2003 22.12 .35 (.59) (.24) (.27) -- (.27) 21.61 (1.01)
2002 24.72 .46 (2.61) (2.15) (.39) (.06) (.45) 22.12 (8.79)
2001 24.68 .56 1.10 1.66 (.49) (1.13) (1.62) 24.72 6.86
2000 25.63 .57 (.97) (.40) (.44) (.11) (.55) 24.68 (1.57)
1999 25.51 .45 .69 1.14 (.34) (.68) (1.02) 25.63 4.71
Class R (8/96)
2003 21.17 .53 (.57) (.04) (.67) -- (.67) 20.46 (.02)
2002 23.90 .67 (2.52) (1.85) (.82) (.06) (.88) 21.17 (7.84)
2001 24.13 .78 1.09 1.87 (.97) (1.13) (2.10) 23.90 7.84
2000 25.33 .80 (.96) (.16) (.93) (.11) (1.04) 24.13 (.64)
1999 25.39 .68 .71 1.39 (.77) (.68) (1.45) 25.33 5.81
- ----------------------------------------------------------------------------------------------------------------------
Class (Inception Date)
Ratios/Supplemental Data
---------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
MUNICIPAL and STOCK ----------------- ----------------- -----------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended June 30, (000) Assets Assets Assets Assets Assets Assets Rate
- -------------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $ 59,780 1.35% 2.34% 1.25% 2.44% 1.24% 2.45% 38%
2002 68,197 1.29 2.64 1.25 2.68 1.25 2.68 34
2001 85,586 1.26 2.96 1.24 2.98 1.24 2.98 37
2000 93,400 1.26 2.95 1.21 3.01 1.20 3.02 53
1999 123,917 1.23 2.49 1.19 2.52 1.19 2.52 52
Class B (8/96)
2003 26,534 2.10 1.60 2.00 1.71 1.99 1.71 38
2002 34,071 2.04 1.89 2.00 1.93 2.00 1.93 34
2001 41,641 2.01 2.22 1.99 2.23 1.99 2.23 37
2000 45,779 2.01 2.20 1.96 2.26 1.95 2.27 53
1999 52,718 1.98 1.80 1.94 1.83 1.94 1.83 52
Class C (8/96)
2003 9,083 2.10 1.59 2.00 1.69 1.99 1.70 38
2002 10,828 2.04 1.89 2.00 1.94 2.00 1.94 34
2001 14,302 2.01 2.22 1.99 2.23 1.99 2.23 37
2000 14,837 2.01 2.21 1.96 2.27 1.95 2.28 53
1999 20,498 1.98 1.76 1.94 1.80 1.94 1.80 52
Class R (8/96)
2003 731 1.10 2.58 1.00 2.69 .99 2.69 38
2002 783 1.04 2.90 1.00 2.94 1.00 2.94 34
2001 1,120 1.01 3.21 1.00 3.22 .99 3.23 37
2000 1,111 1.01 3.20 .96 3.26 .95 3.26 53
1999 1,182 .98 2.72 .94 2.76 .94 2.77 52
- -------------------------------------------------------------------------------------------------------------
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
See accompanying notes to financial statements.
- ----
38
Selected data for a share outstanding throughout each year:
Class (Inception Date)
Investment Operations Less Distributions
---------------------------- -------------------------
STOCK and BOND
Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Asset ment Gain ment Capital Asset Total
Year Ended June 30, Value Income(a) (Loss) Total Income Gains Total Value Return(b)
- -------------------------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $23.48 $.38 $ (.65) $ (.27) $(.43) $ (.06) $ (.49) $22.72 (.99)%
2002 25.25 .44 (1.73) (1.29) (.47) (.01) (.48) 23.48 (5.14)
2001 25.20 .57 2.00 2.57 (.58) (1.94) (2.52) 25.25 10.39
2000 27.18 .69 (1.02) (.33) (.70) (.95) (1.65) 25.20 (1.23)
1999 26.39 .58 1.93 2.51 (.57) (1.15) (1.72) 27.18 10.21
Class B (8/96)
2003 23.48 .22 (.65) (.43) (.27) (.06) (.33) 22.72 (1.73)
2002 25.25 .25 (1.72) (1.47) (.29) (.01) (.30) 23.48 (5.86)
2001 25.20 .37 2.00 2.37 (.38) (1.94) (2.32) 25.25 9.58
2000 27.18 .50 (1.02) (.52) (.51) (.95) (1.46) 25.20 (1.97)
1999 26.39 .39 1.93 2.32 (.38) (1.15) (1.53) 27.18 9.39
Class C (8/96)
2003 23.49 .22 (.65) (.43) (.27) (.06) (.33) 22.73 (1.73)
2002 25.26 .25 (1.72) (1.47) (.29) (.01) (.30) 23.49 (5.86)
2001 25.21 .37 2.00 2.37 (.38) (1.94) (2.32) 25.26 9.58
2000 27.19 .50 (1.02) (.52) (.51) (.95) (1.46) 25.21 (1.93)
1999 26.39 .40 1.93 2.33 (.38) (1.15) (1.53) 27.19 9.39
Class R (8/96)
2003 23.47 .44 (.64) (.20) (.49) (.06) (.55) 22.72 (.70)
2002 25.24 .50 (1.72) (1.22) (.54) (.01) (.55) 23.47 (4.90)
2001 25.19 .62 2.01 2.63 (.64) (1.94) (2.58) 25.24 10.66
2000 27.18 .76 (1.03) (.27) (.77) (.95) (1.72) 25.19 (1.02)
1999 26.39 .65 1.93 2.58 (.64) (1.15) (1.79) 27.18 10.48
- -------------------------------------------------------------------------------------------------------------------------
Class (Inception Date)
Ratios/Supplemental Data
--------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(c) Reimbursement(d)
STOCK and BOND ----------------- ----------------- -----------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Assets Net Net Net Net Net Net Turnover
Year Ended June 30, (000) Assets Assets Assets Assets Assets Assets Rate
- --------------------------------------------------------------------------------------------------------------
Class A (8/96)
2003 $36,751 1.38% 1.64% 1.25% 1.77% 1.25% 1.77% 68%
2002 42,907 1.40 1.61 1.25 1.76 1.24 1.77 82
2001 49,030 1.41 2.04 1.25 2.20 1.24 2.21 73
2000 52,470 1.38 2.50 1.21 2.66 1.20 2.67 81
1999 67,512 1.36 2.10 1.19 2.27 1.19 2.27 96
Class B (8/96)
2003 12,255 2.13 .89 2.00 1.02 2.00 1.02 68
2002 13,067 2.15 .86 2.00 1.01 1.99 1.02 82
2001 12,243 2.15 1.28 2.00 1.43 1.99 1.44 73
2000 11,200 2.13 1.76 1.96 1.92 1.95 1.93 81
1999 12,856 2.11 1.38 1.94 1.54 1.94 1.54 96
Class C (8/96)
2003 7,541 2.13 .90 2.00 1.03 2.00 1.03 68
2002 6,686 2.15 .86 2.00 1.01 1.99 1.02 82
2001 6,498 2.15 1.29 2.00 1.44 1.99 1.45 73
2000 6,620 2.13 1.76 1.96 1.93 1.95 1.93 81
1999 7,142 2.10 1.38 1.94 1.54 1.94 1.55 96
Class R (8/96)
2003 7,048 1.13 1.90 1.00 2.03 1.00 2.03 68
2002 5,324 1.15 1.86 1.00 2.01 .99 2.02 82
2001 5,396 1.15 2.27 1.00 2.42 .99 2.43 73
2000 4,625 1.13 2.74 .96 2.91 .95 2.92 81
1999 4,445 1.11 2.37 .94 2.53 .94 2.53 96
- --------------------------------------------------------------------------------------------------------------
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(c) After expense reimbursement from the Adviser, where applicable.
(d) After custodian fee credit and expense reimbursement, where applicable.
See accompanying notes to financial statements.
- ----
39
Report of Independent Auditors
To the Board of Trustees and Shareholders of
Nuveen Investment Trust:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios 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 NWQ
Multi-Cap Value Fund, Nuveen Large-Cap Value Fund, Nuveen Balanced Municipal
and Stock Fund and Nuveen Balanced Stock and Bond Fund (each a series of the
Nuveen Investment Trust, hereafter referred to as the "Funds") at June 30,
2003, the results of each of their operations for the periods then ended, the
changes in each of their net assets for the periods then ended, the financial
highlights of Nuveen NWQ Multi-Cap Value Fund for the periods then ended and
the financial highlights of Nuveen Large-Cap Value Fund, Nuveen Balanced
Municipal and Stock Fund and Nuveen Balanced Stock and Bond Fund for the two
years then ended, 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 Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which 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 audits, which included confirmation
of securities at June 30, 2003 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion. The financial highlights
of Nuveen Large-Cap Value Fund, Nuveen Balanced Municipal and Stock Fund and
Nuveen Balanced Stock and Bond Fund for the periods ended June 30, 2001 and
prior were audited by other independent auditors who have ceased operations.
Those independent auditors expressed an unqualified opinion on those statements
in their report dated August 20, 2001.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
August 19, 2003
- ----
40
Notes
- ----
41
- --------------------------------------------------------------------------------
Trustees 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 of
Trustees of the Funds. The number of trustees of the Funds is currently set at
eight. None of the trustees 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 trustees and officers of
the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
The Funds' Statement of Additional Information ("SAI") includes more
information about the Trustees. To request a free copy, call Nuveen Investments
at (800) 257-8787.
Number of
Portfolios in
Name, Position(s) Year First Principal Occupation(s) Fund Complex
Birthdate Held with Elected or Including other Directorships Overseen by
and Address the Fund Appointed(2) During Past 5 Years Trustee
- --------------------------------------------------------------------------------------------------------------------
Trustee who is an interested person of the Funds:
- --------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 140
3/28/49 Board and Investments, Inc. and Nuveen Investments,
333 W. Wacker Drive Trustee LLC; Director (since 1992) and Chairman
Chicago, IL 60606 (since 1996) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.;
Chairman and Director (since 1997) of Nuveen
Asset Management, Inc.; Director (since
1996) of Institutional Capital Corporation;
Chairman and Director (since 1999) of
Rittenhouse Asset Management, Inc.; Chairman
of Nuveen Investments Advisers Inc. (since
2002).
Trustees who are not interested persons of the Funds:
- --------------------------------------------------------------------------------------------------------------------
William E. Bennett Trustee 2001 Private Investor; previously, President and 140
10/16/46 Chief Executive Officer, Draper & Kramer,
333 W. Wacker Drive Inc., a private company that handles
Chicago, IL 60606 mortgage banking, real estate development,
pension advisory and real estate management
(1995-1998). Prior thereto, Executive Vice
President and Chief Credit Officer of First
Chicago Corporation and its principal
subsidiary, The First National Bank of
Chicago.
- --------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 134
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (August 1989) as Senior Vice 134
7/29/34 President of The Northern Trust Company;
333 W. Wacker Drive Director of the United Way of Highland
Chicago, IL 60606 Park-Highwood (since 2002).
- --------------------------------------------------------------------------------------------------------------------
Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 70
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive 1996); Director, Alliant Energy; Director
Chicago, IL 60606 and Vice Chairman, United Fire & Casualty
Company; Director, Federal Reserve Bank of
Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group,
Inc., a regional financial services firm.
- --------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Trustee 1994 Retired, formerly, Executive Director (since 134
1/26/33 1998) of Manitoga/The Russel Wright Design
333 W. Wacker Drive Center; prior thereto, President and Chief
Chicago, IL 60606 Executive Officer of Blanton-Peale Institute
(since 1990); prior thereto, Vice President,
Metropolitan Life Insurance Co.
- --------------------------------------------------------------------------------------------------------------------
William L. Kissick Trustee 1992 Professor Emeritus, School of Medicine and 70
7/29/32 the Wharton School of Management and former
333 W. Wacker Drive Chairman, Leonard Davis Institute of Health
Chicago, IL 60606 Economics, University of Pennsylvania;
Adjunct Professor, Health Policy and
Management, Yale University.
- --------------------------------------------------------------------------------------------------------------------
Thomas E. Leafstrand Trustee 1992 Retired; previously, Vice President in 70
11/11/31 charge of Municipal Underwriting and Dealer
333 W. Wacker Drive Sales at The Northern Trust Company.
Chicago, IL 60606
- ----
42
- --------------------------------------------------------------------------------
Number of
Portfolios in
Name, Position(s) Year First Principal Occupation(s) Fund Complex
Birthdate Held with Elected or Including other Directorships Overseen by
and Address the Fund Appointed(2) During Past 5 Years Trustee
- ------------------------------------------------------------------------------------------------------------
Peter R. Sawers Trustee 1991 Adjunct Professor of Business and Economics, 134
4/3/33 University of Dubuque, Iowa; formerly
333 W. Wacker Drive (1991-2000) Adjunct Professor, Lake Forest
Chicago, IL 60606 Graduate School of Management, Lake Forest,
Illinois; prior thereto, Executive Director,
Towers Perrin Australia, a management
consulting firm; Chartered Financial
Analyst; Certified Management Consultant;
Director, Executive Service Corps of
Chicago, a not-for-profit organization.
- ------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Senior Partner and Chief Operating Officer, 134
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a development and
Chicago, IL 60606 contract company; Chair, Miami Valley
Hospital; Chair, Miami Valley Economic
Development Coalition; formerly, Member,
Community Advisory Board, National City
Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 134
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
- ------------------------------------------------------------------------------------------------------------
Sheila W. Wellington Trustee 1994 President (since 1993) of Catalyst (a 70
2/24/32 not-for-profit organization focusing on
333 W. Wacker Drive women's leadership development in business
Chicago, IL 60606 and the professions).
Officers of the Funds:
- ------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 140
9/9/56 Administrative Secretary and Associate General Counsel,
333 W. Wacker Drive Officer formerly, Vice President and Assistant
Chicago, IL 60606 General Counsel of Nuveen Investments, LLC;
Managing Director (since 2002), General
Counsel and Assistant Secretary, formerly,
Vice President of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant
Secretary and Associate General Counsel,
formerly, Vice President (since 2000), of
Nuveen Asset Management, Inc.; Assistant
Secretary of Nuveen Investments, Inc. (since
1994); 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. (since May 2003); Chartered
Financial Analyst.
- ------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 140
2/3/66 and Assistant Assistant Vice President (since 2000),
333 W. Wacker Drive Secretary previously, Associate of Nuveen Investments,
Chicago, IL 60606 LLC.
- ------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC 140
11/28/67 and Treasurer (since 1999), prior thereto, Assistant Vice
333 W. Wacker Drive President (since 1997); Vice President and
Chicago, IL 60606 Treasurer of Nuveen Investments, Inc. (since
1999); Vice President and Treasurer of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp (since 1999);
Vice President and Treasurer of Nuveen Asset
Management, Inc. (since 2002) and of Nuveen
Investments Advisers Inc. (since 2002);
Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002);
Chartered Financial Analyst.
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43
Trustees and Officers (continued)
================================================================================
Number of
Portfolios in
Name, Position(s) Year First Principal Occupation(s) Fund Complex
Birthdate Held with Elected or Including other Directorships Overseen by
and Address the Fund Appointed(2) During Past 5 Years Trustee
- -------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. 140
9/8/54 (since 2001); previously, Vice President of
333 W. Wacker Drive Van Kampen Investment Advisory Corp. (since
Chicago, IL 60606 1998); Vice President of Nuveen
Institutional Advisory Corp. (since 2002);
prior thereto, Assistant Vice President of
Van Kampen Investment Advisory Corp. (since
1994).
- -------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant 140
9/24/64 and Secretary General Counsel (since 1998); formerly,
333 W. Wacker Drive Assistant Vice President (since 1998) of
Chicago, IL 60606 Nuveen Investments, LLC; Vice President
(since 2002) and Assistant Secretary (since
1998), formerly Assistant Vice President of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
- -------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; 140
10/24/45 Vice President (since 1998) of Nuveen
333 W. Wacker Drive Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.
- -------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen 140
3/2/64 Investments, LLC; Managing Director (since
333 W. Wacker Drive 2001), formerly Vice President of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional
Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc.
(since 2001); Vice President of Nuveen
Investment Advisers Inc. (since 2002);
Chartered Financial Analyst.
- -------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 140
5/31/54 and Controller Controller (since 1998) of Nuveen
333 W. Wacker Drive Investments, LLC and Vice President and
Chicago, IL 60606 Funds Controller (since 1998) of Nuveen
Investments, Inc.; Certified Public
Accountant.
- -------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 140
3/22/63 Investments, LLC, previously Assistant Vice
333 W. Wacker Drive President (since 1999); prior thereto,
Chicago, IL 60606 Associate of Nuveen Investments, LLC;
Certified Public Accountant.
- -------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, 140
8/27/61 Assistant Vice President (since 1993) of
333 W. Wacker Drive Nuveen Investments, LLC.
Chicago, IL 60606
- -------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 140
7/27/51 and Assistant Assistant General Counsel of Nuveen
333 W. Wacker Drive Secretary Investments, LLC; Vice President and
Chicago, IL 60606 Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments,
Inc. and (since 1997) Nuveen Asset
Management, Inc.; 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).
- -------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen 140
7/7/65 Investments, LLC; Managing Director (since
333 W. Wacker Drive 1997), formerly Vice President (since 1996)
Chicago, IL 60606 of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.; Managing
Director of Nuveen Asset Management, Inc.
(since 1999). Chartered Financial Analyst.
(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 trustee of the
Adviser.
(2)Trustees serve an indefinite term until his/her successor is elected. The
year first elected or appointed represents the year in which the Trustee was
first elected or appointed to any fund in the Nuveen Complex.
(3)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.
- ----
44
- --------------------------------------------------------------------------------
Fund Information
================================================================================
Fund Manager Legal Counsel Transfer Agent and
Nuveen Institutional Advisory Corp. Chapman and Cutler LLP Shareholder Services
333 West Wacker Drive Chicago, IL Boston Financial
Chicago, IL 60606 Data Services, Inc.
Independent Auditors Nuveen Investor Services
Sub-Advisers PricewaterhouseCoopers LLP P.O. Box 8530
NWQ Investment Management Chicago, IL Boston, MA 02266-8530
Company, LLC (800) 257-8787
2049 Century Park East Custodian
Los Angeles, CA 90067 State Street Bank & Trust
Institutional Capital Corporation Boston, MA
225 West Wacker Drive
Chicago, IL 60606
================================================================================
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Market Capitalization: The market capitalization of a company is equal
to the number of the company's common shares outstanding multiplied by the
current price of the company's stock. The average market capitalization of a
mutual fund's portfolio gives a measure of the size of the companies in which
the fund invests.
Duration: Duration is a measure of a bond or bond fund's sensitivity to changes
in interest rates. Generally, the longer a bond or fund's duration, the more
the price of the bond or fund will change as interest rates change.
Average Price/Earnings Ratio (P/E Ratio): The P/E ratio of a stock is
calculated by dividing the current price of the stock by its trailing 12
months' earnings per share. The average of the price/earnings ratio of a Fund
is a weighted average of all the current P/E ratios of the stocks in a mutual
fund's portfolio.
Beta: Beta is a measure of a equity's or a fund's sensitivity to underlying
market movements. The higher the beta, the more volatile the equity or fund can
be expected to be in relation to the market. The beta of the comparative
underlying market is 1.00 by definition, so that a beta of 1.20 means that the
fund has performed 20% better than its benchmark in up markets and 20% worse in
down markets, assuming all other factors remain constant.
Net Asset Value (NAV): A fund's NAV is the dollar value of one share in the
fund. It is calculated by subtracting the liabilities of 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.
SEC 30-Day Yield: A standardized measure of a fund's yield that accounts for
the future amortization of premiums or discounts of bonds held in the fund's
portfolio.
================================================================================
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and
their associated persons in response to either telephone inquiries at (800)
289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also
provides an investor brochure that includes information describing the Public
Disclosure Program.
- ----
45
- --------------------------------------------------------------------------------
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.
Managing $88 billion in assets, 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 four distinct brands: Nuveen, a leader
in tax-free investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader
in growth-style equities; and Symphony, a
leading institutional manager of
market-neutral alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers and for a
prospectus, where applicable, talk to your
financial advisor, or call us at (800)
257-8787. Please read the information
carefully before you invest.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MAN-GRINC-0603D
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 1. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. 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 these 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 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 registrant's last fiscal half-year (the registrant's
second fiscal half-year in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 10. 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 hereto, 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.
(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 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Attached
hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certification required by Rule 30a-2(b) under the 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 or Title
18 of the United States Code (18 U.S.C. 1350) or 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. 7r), 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 registration specifically
incorporates it by reference. EX-99.CERT
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 Investment Trust
--------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
-------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date September 9, 2003
----------------------------------------------------------------
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 September 9, 2003
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date September 9, 2003
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.