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 30
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Date of reporting period: June 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure
review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss.3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
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Nuveen Investments
Value and Balanced Funds
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Annual Report dated June 30, 2004
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For investors seeking long-term growth potential.
[PHOTO]
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
Dear Shareholder,
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 gains in the stock market, many have begun to wonder which way
the market is headed, and whether they need to adjust their holdings of
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 Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
I would 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 Investments
Fund shareholders already have signed up, and they are getting their Fund
information faster and helping to lower Fund expenses. 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 17, 2004
"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."
Annual Report Page 1
Portfolio Manager's Comments Nuveen NWQ Multi-Cap Value Fund
The Nuveen NWQ Multi-Cap Value Fund features equity management by NWQ
Investment Management Company, LLC (NWQ) of which Nuveen Investments, Inc.
owns a controlling interest. 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 12-month reporting period
that ended June 30, 2004.
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What kind of market environment did the Fund encounter during the 12-month
reporting period ended June 30, 2004?
Stocks appreciated sharply over the reporting period due to attractive
valuations and improved corporate cash flows. Profitability enhancement, which
had been lacking for most companies, improved significantly during the year due
to ongoing strength in the economy. Historically low interest rates,
stimulative tax cuts, and a recovery in capital spending levels were among the
catalysts contributing to the rise in economic growth. Stocks were also
bolstered by a re-emergence of merger activity. The banking, gaming, and
technology industries are areas that were particularly active. Although the
stock market posted strong, double-digit gains for 2003, stocks did decline in
the spring of 2004. Investors became concerned about a steep increase in
commodity prices, and prospects of rising interest rates. Stocks did recover
moderately in June as valuations became more compelling.
In this environment, how did the Fund perform?
We are very pleased to have generated strongly positive results for our clients
for the twelve-month period ended June 30, 2004. The Fund's results (Class A
shares at net asset value), as well as the performance of several appropriate
benchmarks (Russell 3000 Value Index, S&P 500 Index and Lipper Multi-Cap Value
Funds Index), are available in the accompanying table on page 3.
What was your strategy in managing the Fund during the 12-month reporting
period ended June 30, 2004?
We employed a consistent, opportunistic approach to investing, utilizing a
bottom-up strategy that focused on identifying attractively valued companies
which, in our opinion, possessed favorable risk/reward characteristics and
emerging catalysts that we believed could unlock value or improve
profitability. These catalysts include 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 the 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?
Volatility in certain sectors of the market provided an opportunity to take
advantage of investor overreactions created by fear and panic. In the mortgage
sector, we added to our positions after the stocks declined due to concerns of
rising interest rates. We believed mortgage companies offered attractive
valuations and favorable risk/reward even in a period of rising rates. We made
similar opportunistic purchases in the defense and grocery industries.
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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 Page 2
Class A Shares
Average Annual Total Returns
as of 6/30/04
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Since
Inception
1-Year 5-Year (11/4/97)
-----------------------
Nuveen NWQ Multi-Cap Value Fund
A Shares at NAV 30.75% 11.54% 12.80%
A Shares at Offer 23.24% 10.22% 11.80%
Lipper Multi-Cap Value Funds Index/1/ 22.22% 3.63% 5.98%
Russell 3000 Value Index/2/ 22.14% 2.63% 6.28%
S&P 500 Index/3/ 19.11% -2.20% 4.24%
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Effective December 6, 2002, based on shareholder approval, the Nuveen NWQ
Multi-Cap Value Fund acquired the assets and performance history of the PBHG
Special Equity Fund. The Fund had no assets prior to the acquisition. In
addition, on December 14, 2001, the PBHG Special Equity Fund acquired the
assets of the NWQ Special Equity Portfolio. The information presented for the
Nuveen NWQ Multi-Cap Value Fund prior to the acquisition date represents the
expense adjusted performance of the predecessor funds.
Returns quoted represent past performance which is no guarantee of future
performance. Returns at NAV would be lower if the sales charge were included.
Current performance may be higher or lower than the performance shown.
Investment returns and principal value will fluctuate so that when shares are
redeemed, they may be worth more or less than their original cost. Class A
shares have a 5.75% maximum sales charge. Returns do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption
of shares. For the most recent month-end performance visit www.nuveen.com or
call (800) 257-8787.
What were some of the stocks that most helped the Fund's performance?
Individual stock selection within a sharply rising stock market contributed to
the Fund's strong performance in the past twelve months. Most of our
investments appreciated due to attractive valuations and strongly improving
fundamentals. In the technology sector, our investment in Internet security
provider SonicWALL appreciated significantly due to a strong pricing
environment, and new products that should increase margins and market share.
The company has a strong balance sheet, and is actively working to expand its
market presence in Europe. Robust growth in wireless communication services and
higher capital spending by wireless carriers contributed to a rise in Comverse
Technology, and Agilent Technologies appreciated due to the growth of camera
cell phones utilizing Agilent components. Agilent also continues to make
meaningful progress with its ongoing restructuring efforts that should increase
its operating leverage. Our position in hotel operator Felcor Lodging Trust
appreciated due to higher occupancy and room rates, and Hartford Financial
Services Group posted a gain due to a favorable pricing outlook for property
casualty insurance.
Our investment in mortgage originator Countrywide Financial posted a strong
gain, while our mortgage insurance stocks, including MGIC and Radian Group,
both rose significantly. One of the portfolio's best performers was specialty
lender Americredit Corp. The shares rose due to increasing strength in the
company's fundamentals,
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1The 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 Funds category. The since inception data for the index represents
returns for the period 11/30/97 - 6/30/04, as returns for the index are
calculated on a calendar month basis. The returns assume reinvestment of
dividends, but do not reflect any applicable sales charges. You cannot invest
directly in an index.
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.
Annual Report Page 3
including significant improvement in its credit statistics and liquidity
position. Our energy holdings appreciated for the year as high oil and gas
prices have contributed to an increase in drilling activity, higher refining
margins, and improved cash flows for energy companies. Although crude prices
have retreated from their lofty levels, favorable supply/demand conditions
remain intact due to strong global economic growth, particularly in China.
Finally, our investment in Toys R Us appreciated after management reiterated
its commitment to maximize shareholder value through a major restructuring. The
company plans on closing many of its unprofitable toy stores and focus its
resources on its healthier Babies R Us and International operations.
Which of your investments hurt overall Fund performance during the period?
Although the stock has made a substantial recovery from its mid-November lows,
our position in property casualty insurer PMA Capital Corp. posted a decline
for the reporting period after the company suspended its stock dividend and
took a large charge due to higher-than-expected underwriting losses. The recent
recovery of the stock was due to greater recognition of the value of its
worker's compensation business, which resulted from receiving regulatory
approval for an organizational restructuring. Tape drive manufacturer Quantum
Corp. fell due to a cautious earnings outlook, and our stake in MFA Mortgage
Investments declined since we purchased it in mid-December.
Nuveen NWQ Multi-Cap Value Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen NWQ Multi-
Cap Value Fund Nuveen NWQ Multi- Lipper Multi- Russell 3000 S&P 500
(Offer Price) Cap Value Fund (NAV) Cap Value Index Index Index
---------------- -------------------- --------------- ------------- ----------
11/97 $ 9,425.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
11/97 9,074.60 9,628.22 10,213.00 10,409.00 10,463.00
12/97 9,336.52 9,906.12 10,435.64 10,718.15 10,642.96
1/98 9,249.75 9,814.05 10,411.64 10,562.73 10,761.10
2/98 9,926.16 10,531.74 11,127.96 11,266.21 11,536.98
3/98 10,668.05 11,318.88 11,627.61 11,933.17 12,127.67
4/98 10,854.17 11,516.36 11,692.72 12,010.74 12,250.16
5/98 10,324.69 10,954.58 11,433.14 11,808.96 12,039.46
6/98 10557.86 11,201.97 11,420.57 11,940.04 12,528.26
7/98 10,075.72 10,690.41 10,978.59 11,664.22 12,395.46
8/98 8,257.88 8,761.67 9,298.87 9,920.42 10,603.07
9/98 8,670.02 9,198.96 9,683.84 10,488.86 11,282.73
10/98 9,401.65 9,975.22 10,480.82 11,259.79 12,200.02
11/98 9,681.76 10,272.43 10,933.59 11,766.48 12,939.34
12/98 10,003.53 10,613.82 11,115.09 12,164.19 13,684.65
1/99 10,436.75 11,073.48 11,153.99 12,232.31 14,256.66
2/99 9,971.11 10,579.42 10,894.10 12,008.46 13,813.28
3/99 10,489.30 11,129.23 11,194.78 12,231.82 14,365.81
4/99 11,641.06 12,351.26 12,190.00 13,373.04 14,921.77
5/99 11,808.81 12,529.24 12,126.61 13,264.72 14,569.62
6/99 12,165.66 12,907.86 12,517.09 13,657.36 15,378.23
7/99 11,671.05 12,383.07 12,091.51 13,262.66 14,898.43
8/99 11,110.55 11,788.38 11,675.56 12,771.94 14,825.43
9/99 10,682.76 11,334.49 11,172.34 12,338.97 14,419.21
10/99 11,190.99 11,873.73 11,517.57 12,979.37 15,331.95
11/99 11,377.73 12,071.86 11,512.96 12,888.51 15,643.18
12/99 12,059.98 12,795.74 11,775.45 12,972.29 16,564.57
1/00 11,217.80 11,902.18 11,267.93 12,554.58 15,733.03
2/00 10,395.23 11,029.42 10,675.24 11,736.02 15,435.67
3/00 12,073.22 12,809.78 11,803.61 13,063.36 16,945.28
4/00 11,755.78 12,472.98 11,781.19 12,926.20 16,435.23
5/00 12,001.38 12,733.56 11,944.94 13,039.95 16,098.31
6/00 11,566.08 12,271.70 11,685.74 12,510.53 16,495.93
7/00 11,687.89 12,400.94 11,785.07 12,684.42 16,238.60
8/00 12,516.84 13,280.47 12,533.42 13,380.80 17,247.01
9/00 12,400.22 13,156.73 12,359.20 13,490.52 16,336.37
10/00 12,703.77 13,478.80 12,653.35 13,796.75 16,267.76
11/00 12,194.15 12,938.10 12,186.44 13,298.69 14,985.86
12/00 13,425.99 14,245.08 12,911.54 14,012.83 15,059.29
1/01 13,761.09 14,600.63 13,399.59 14,088.50 15,593.89
2/01 13,482.00 14,304.51 13,032.45 13,722.20 14,171.73
3/01 13,393.59 14,210.71 12,575.01 13,255.65 13,273.24
4/01 13,851.63 14,696.69 13,389.87 13,902.52 14,304.58
5/01 14,166.06 15,030.30 13,685.78 14,218.11 14,400.42
6/01 14,181.16 15,046.33 13,454.49 13,965.03 14,050.49
7/01 14,434.31 15,314.92 13,437.00 13,916.15 13,912.79
8/01 14,041.96 14,898.64 12,938.49 13,392.90 13,041.85
9/01 12,847.37 13,631.16 11,612.29 12,412.54 11,988.07
10/01 12,827.01 13,609.56 11,851.51 12,334.34 12,217.04
11/01 13,764.81 14,604.57 12,709.56 13,063.30 13,154.09
12/01 14,207.66 15,074.44 13,078.13 13,405.56 13,269.84
1/02 14,402.28 15,280.93 12,908.12 13,322.45 13,076.10
2/02 14,498.31 15,382.82 12,739.02 13,347.76 12,823.74
3/02 15,274.47 16,206.34 13,388.71 14,007.14 13,305.91
4/02 15,534.69 16,482.43 12,995.08 13,600.93 12,499.57
5/02 15,542.36 16,490.57 12,982.09 13,626.77 12,407.07
6/02 14,332.63 15,207.04 11,988.96 12,882.75 11,523.69
7/02 12,925.93 13,714.52 10,993.88 11,631.84 10,625.99
8/02 13,284.98 14,095.47 11,168.68 11,709.77 10,695.06
9/02 11,199.63 11,882.89 9,957.99 10,440.43 9,532.51
10/02 12,008.18 12,740.77 10,490.75 11,169.17 10,371.37
11/02 13,517.69 14,342.38 11,272.31 11,885.12 10,982.24
12/02 12,950.80 13,740.90 10,775.20 11,369.30 10,337.59
1/03 13,258.89 14,067.78 10,553.23 11,090.75 10,066.74
2/03 12,675.72 13,449.03 10,282.01 10,790.19 9,915.74
3/03 12,697.72 13,472.38 10,321.08 10,815.01 10,011.92
4/03 13,996.10 14,849.98 11,217.98 11,772.14 10,836.91
5/03 15,987.69 16,963.06 12,155.81 12,563.23 11,408.01
6/03 16,064.71 17,044.78 12,244.55 12,724.04 11,554.03
7/03 16,394.80 17,395.02 12,413.52 12,945.44 11,757.38
8/03 17,010.99 18,048.79 12,802.06 13,168.10 11,986.65
9/03 16,735.90 17,756.93 12,654.84 13,037.73 11,859.59
10/03 17,671.18 18,749.26 13,352.12 13,855.20 12,530.85
11/03 17,814.22 18,901.03 13,636.52 14,069.95 12,641.12
12/03 19,069.04 20,232.41 14,307.44 14,908.52 13,303.51
1/04 19,759.38 20,964.86 14,609.33 15,190.29 13,548.30
2/04 20,438.40 21,685.30 14,888.36 15,513.85 13,736.62
3/04 20,404.45 21,649.28 14,758.83 15,405.25 13,529.20
4/04 19,759.38 20,964.86 14,487.27 14,995.47 13,316.79
5/04 20,042.30 21,265.04 14,555.36 15,149.92 13,499.23
6/04 21,004.24 22,285.67 14,965.82 15,539.28 13,761.11
The graph does not reflect the deduction of taxes that a shareholder may pay on
Fund distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen NWQ Multi-Cap Value Fund compared with the
corresponding indexes. The 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 Funds category. The 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 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 initial or ongoing expenses. You cannot invest directly in an
index. The Nuveen Fund returns include reinvestment of all dividends and
distributions, and the Fund's return at the offer price depicted in the chart
reflects the initial maximum sales charge applicable to 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 lower or higher than the performance shown.
Annual Report Page 4
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Fund Spotlight as of 6/30/04 Nuveen NWQ Multi-Cap Value Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
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NAV $18.56 $18.45 $18.45 $18.52
--------------------------------------------------
Inception Date 12/09/02 12/09/02 12/09/02 11/04/97
--------------------------------------------------
Effective December 6, 2002, based on shareholder approval, the Nuveen NWQ
Multi-Cap Value Fund acquired the assets and performance history of the PBHG
Special Equity Fund. The Fund had no assets prior to the acquisition. In
addition, on December 14, 2001, the PBHG Special Equity Fund acquired the
assets of the NWQ Special Equity Portfolio. The information presented for the
Nuveen NWQ Multi-Cap Value Fund prior to the acquisition date represents the
expense adjusted performance of the predecessor funds.
Returns quoted represent past performance which is no guarantee of future
performance. Returns without sales charges would be lower if the sales charge
were included. Current performance may be higher or lower than the performance
shown. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than their original cost.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. For the most recent month-end
performance visit www.nuveen.com or call (800) 257-8787.
Class R total returns are actual and reflect the performance of the predecessor
funds. The returns for Class A, B and C shares 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. Returns may
reflect a voluntary expense limitation by the Fund's investment adviser which
may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 30.75% 23.24%
------------------------------------------
5-Year 11.54% 10.22%
------------------------------------------
Since Inception 12.80% 11.80%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 29.76% 25.76%
------------------------------------------
5-Year 10.71% 10.58%
------------------------------------------
Since Inception 11.96% 11.96%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 29.67%
------------------------------------------
5-Year 10.71%
------------------------------------------
Since Inception 11.96%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 31.02%
------------------------------------------
5-Year 11.85%
------------------------------------------
Since Inception 13.10%
------------------------------------------
Top Five Stock Sectors/1/
Financials 34.10%
------------------------------------------
Information Technology 12.82%
------------------------------------------
Energy 11.01%
------------------------------------------
Industrials 8.59%
------------------------------------------
Materials 6.88%
------------------------------------------
Portfolio Allocation/1/
[CHART]
Equities 90.34%
Short-Term Investments 9.66%
Top Five Stock Holdings/1/
IndyMac Bancorp, Inc. 4.85%
---------------------------------------------------
Computer Associates International, Inc. 4.25%
---------------------------------------------------
Countrywide Financial Corporation 3.82%
---------------------------------------------------
Noble Energy, Inc. 3.76%
---------------------------------------------------
Agilent Technologies, Inc. 3.56%
---------------------------------------------------
Portfolio Statistics
Net Assets ($000) $144,231
---------------------------------------------------
Average Market Capitalization (Stocks) $23 billion
---------------------------------------------------
Number of Stocks 45
---------------------------------------------------
Expense Ratio/2/ 1.48%
---------------------------------------------------
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1As a percentage of total holdings as of June 30, 2004. Holdings are subject to
change.
2Class A shares after credit/reimbursement for the 12 months ended June 30,
2004.
Annual Report l Page 5
Portfolio Managers' Comments for the Nuveen Large-Cap Value,
Balanced Municipal and Stock, and Balanced Stock and Bond Funds
The Nuveen Large-Cap Value, Balanced Municipal and Stock, and Balanced Stock
and Bond Funds feature equity management by Institutional Capital Corporation
(ICAP). The municipal portion of the 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 12-month
reporting period ended June 30, 2004.
- --------------------------------------------------------------------------------
What were some of the most significant market factors affecting the Funds'
performance during the 12-month reporting period ended June 30, 2004?
It was a generally positive environment for the stock market, especially the
first half of the reporting period. During those six months, growing corporate
earnings, continued low interest rates, benign inflation, significant tax
reductions, and a steadily declining U.S. dollar helped strengthen the economy.
In the third quarter of 2003, for example, gross domestic product grew at an
annual rate of 8.2 percent, the fastest such expansion for the U.S. economy in
nearly 20 years. Economic growth was solid, though less spectacular, during the
year's fourth quarter. Against this backdrop, stock prices rose steadily, with
the Standard & Poor's 500 Index, rising 15.14 percent between July and December
2003.
Stock prices, after an initial burst of strength in 2004, began to come off
their highs in the second quarter of 2004. As the economy expanded, more and
more investors grew concerned about potential inflation and the likelihood that
the Federal Reserve Board would respond by raising short-term interest rates.
Those concerns were heightened in early April 2004, following the announcement
of an unexpectedly large jump in the Consumer Price Index and an unexpectedly
large drop in the jobless claims rate. Both pieces of data increased investors'
conviction that an interest-rate hike was coming. The Fed did raise rates on
June 30, 2004, though by that time the widely anticipated increase was already
priced into stock values. Other factors hampered stock prices as well,
including a slowdown in the rate of corporate earnings growth, record-high oil
prices that went as high as $42 per barrel, concerns about the transfer of
political authority to a new Iraqi government, the ongoing threat of terrorism
in the United States, and uncertainty surrounding the outcome of the upcoming
U.S. presidential election. Despite these challenges, stocks enjoyed modestly
positive results during the first six months of 2004 and solid performance for
the overall 12-month reporting period.
The municipal bond market was volatile during the past 12 months. At the
beginning of the period, continued low interest rates helped keep bond prices
high and yields low (bond prices and yields move in opposite directions).
However, signs of economic strengthening beginning in early April 2004 led to
fears of higher inflation and rising short-term interest rates. Against this
backdrop, municipal bond yields rose and issuance fell, as it became less
attractive for issuers to refinance existing debt. The limited supply helped
support the municipal market, even in an environment of falling bond prices.
How did the Funds perform during the past 12 months?
The table on the next page provides performance information for the three Funds
(Class A shares at net asset value) for the 12 months ended June 30, 2004. The
table also compares the Funds' performance to appropriate benchmarks. The
Large-Cap Value Fund had positive returns during the period. However, this
result fell short of the 19.11 percent return of the S&P 500 and the
- --------------------------------------------------------------------------------
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 Page 6
21.13 percent return of the Russell 1000 Value Index. Both balanced funds, the
Balanced Municipal and Stock Fund and the Balanced Stock and Bond Fund,
underperformed the S&P 500 and their Lipper peer group as well for the 12 month
period.
The Funds' relative performance benefited from positive stock selection.
However, as a result of our "bottom-up" approach, meaning we evaluate stocks
individually based on their fundamentals and value potential, the portfolio was
overweighted in consumer services and health care stocks. Because both sectors
were relative laggards during the
Annual Report Page 7
Class A Shares
Average Annual Total Returns
as of 6/30/04
- --------------------------------------------------------------------------------
Since
Inception
1-Year 5-Year (8/7/96)
-----------------------
Nuveen Large-Cap Value Fund
A Shares at NAV 17.90% 0.41% 8.48%
A Shares at Offer 11.10% -0.78% 7.67%
Lipper Large-Cap Value Funds Index/1/ 19.61% -0.25% 8.42%
Russell 1000 Value Index/2/ 21.13% 1.87% 10.67%
S&P 500 Index/3/ 19.11% -2.20% 9.06%
-----------------------------------------------------------------------
Nuveen Balanced Municipal and Stock Fund
A Shares at NAV 8.13% 1.14% 5.37%
A Shares at Offer 1.91% -0.05% 4.59%
Lipper Balanced Funds Index/4/ 12.64% 2.18% 7.74%
Lehman Brothers 10-Year Municipal Bond Index/5/ 0.42% 6.11% 6.20%
S&P 500 Index/3/ 19.11% -2.20% 9.06%
-----------------------------------------------------------------------
Nuveen Balanced Stock and Bond Fund
A Shares at NAV 10.29% 2.47% 7.53%
A Shares at Offer 3.93% 1.27% 6.73%
Lipper Balanced Funds Index/4/ 12.64% 2.18% 7.74%
Lehman Brothers Intermediate Treasury Index/6/ -0.52% 6.03% 6.16%
S&P 500 Index/3/ 19.11% -2.20% 9.06%
-----------------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
performance. Returns at NAV would be lower if the sales charge were included.
Current performance may be higher or lower than the performance shown.
Investment returns and principal value will fluctuate so that when shares are
redeemed, they may be worth more or less than their original cost. Class A
Shares have a 5.75% maximum sales charge. Returns do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption
of shares. For the most recent month-end performance visit www.nuveen.com or
call (800) 257-8787.
- --------------------------------------------------------------------------------
1The Lipper Large-Cap Value Funds Index is a managed index that represents the
average annualized total return of the 30 largest funds in the Lipper
Large-Cap Value Funds category for the year ended June 30, 2004. The since
inception data for the index represents returns for the period 8/31/96 -
6/30/04, as returns for the index are calculated on a calendar month basis.
The returns assume reinvestment of dividends and do not reflect any applicable
sales charges. You cannot invest directly in an index.
2The 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. 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 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 Balanced Funds Index is a managed index that represents the average
annualized total return of the 30 largest funds in the Lipper Balanced Fund
category for the year ended June 30, 2004. The since inception data for the
index represents returns for the period 8/31/96 - 6/30/04, as returns for the
index are calculated on a calendar month basis. The returns assume
reinvestment of dividends and do not reflect any applicable sales charges. You
cannot invest directly in an index.
5The 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. You cannot invest directly in an
index.
6The 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. You cannot invest directly
in an index.
period, the Funds' overweighting had a modestly negative impact on overall
results. Nevertheless, the strong overall stock-market environment helped
generate positive absolute returns for the portfolio.
The Nuveen Balanced Municipal and Stock Fund seeks to pay dividends at a rate
that reflects the past and projected performance of the Fund. To permit the
Fund to maintain a more stable dividend, the Fund may pay dividends at a rate
that may be more or less than the amount of net investment income actually
earned by the Fund during the period. If the Fund has cumulatively earned more
than it has paid in dividends, it will hold the excess in reserve as
undistributed net investment income (UNII) as part of the Fund's net asset
value. Conversely, if the Fund has cumulatively paid in dividends more than it
has earned, the excess will constitute a negative UNII, which will likewise be
reflected in the Fund's net asset value. The Fund will, over time, pay all its
net investment income as dividends to shareholders. As of June 30, 2004, the
Nuveen Balanced Municipal and Stock Fund had a positive UNII balance.
What was your approach to managing the equity portion of the Funds?
Facing a continuing competitive and global market environment, we continued to
emphasize companies we believed had strong balance sheets, excellent
franchises, growing free cash flow (cash flow after expenses), and strong
dividend growth. During the first half of the period, the market was favoring
small-cap stocks with relatively weak fundamentals and high price-to-earnings
ratios, characteristics we generally avoid when choosing investments for the
portfolio. Nevertheless, we did not change our management approach, believing
that only companies with strong financial positions will be able to compete
effectively as market conditions become more challenging.
Accordingly, our strategy continued to focus on bottom-up stock picking. We
sought to invest in high-quality companies with a near-term catalyst for better
future performance. This led us, for example, toward opportunities in the
financial sector. We believed that continued-low interest rates would provide a
favorable backdrop for financial services companies with strong balance sheets
and cash flow. In this sector, we favored high-quality, industry-leading
companies such as MetLife, Bank of America, Wells Fargo, and Citigroup.
What were some of the stocks whose performance helped and hurt the Funds?
Oil giant ConocoPhillips had the greatest positive impact on the Funds'
performance during the past 12 months. The company, an outgrowth of the 1999
merger between Conoco and Phillips, continued to benefit from its strong
integration and cost savings, and from oil prices reaching record highs during
the period. The same factors also helped the performance of BP, the world's
largest integrated oil company, formed at the end of 1998 after the merger of
BP and Amoco. BP has been very successful at managing its costs. Conglomerate
Tyco International was a third positive performer for the Funds. Tyco had faced
questions in recent years about its accounting and corporate governance
practices. The company, however, brought in a new management team, restoring
both investors' confidence and financial health.
On the negative side, results were hampered by holdings in Verizon
Communications, the largest provider of wireless telecommunications service in
the United States. We sold our stake in Verizon during the fourth quarter of
2003 because of concerns about its investment risk. Verizon's shares were hurt
by rising pension and health care costs, and because regulatory difficulties
were making the company less profitable. FirstEnergy was another disappointment
during the period. The nation's fourth-largest electric utility, FirstEnergy
was hampered by legal concerns that we believed would hang over the company for
some time. We sold the stock in the third quarter of 2003. A third negative
contributor to performance was Clear Channel Communications, the nation's
leading radio-station operator. Clear Channel saw its shares hurt
Annual Report Page 8
by a continued downturn in spending on radio advertising.
How did you manage the municipal portion of the Balanced Municipal and Stock
Fund?
We sought to keep the municipal portion of the portfolio fully invested
throughout the period. The portfolio's allocation to municipal bonds fell
incrementally, from 55 percent at the beginning of the period to 53 percent at
its end, a decline that reflected growth in the Fund's equity portion.
How did you manage the treasury portion of the Balanced Stock and Bond Fund?
The portfolio's allocation to treasury bonds and notes fell marginally, from
38% at the beginning of the period to 36% at its end. The maturity structure of
the treasury portfolio was maintained in a relatively conservative posture
throughout the reporting period, reflecting an expectation of higher interest
rates.
Annual Report Page 9
Nuveen Large-Cap Value Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Large-Cap Value Fund
Growth of an Assumed $10,000 Investment
S&P 500 Russell 1000 Lipper Large-Cap
NGIS (NAV) NGIS (Offer) Index Value Index Value Index
---------- ------------ -------- ------------ ----------------
8/31/1996 $10,000 $9,425 $10,000 $10,000 $10,000
9/30/1996 10,414 9,815 10,562 10,398 10,490
10/31/1996 10,864 10,239 10,854 10,800 10,711
11/30/1996 11,638 10,969 11,673 11,583 11,478
12/31/1996 11,371 10,717 11,442 11,435 11,284
1/31/1997 11,951 11,264 12,156 11,990 11,854
2/28/1997 12,036 11,344 12,252 12,166 11,949
3/31/1997 11,784 11,106 11,749 11,728 11,493
4/30/1997 12,360 11,650 12,450 12,221 12,004
5/31/1997 13,026 12,277 13,208 12,904 12,695
6/30/1997 13,617 12,834 13,799 13,457 13,225
7/31/1997 14,626 13,785 14,896 14,469 14,222
8/31/1997 14,007 13,201 14,062 13,954 13,613
9/30/1997 14,776 13,926 14,832 14,797 14,310
10/31/1997 14,356 13,531 14,337 14,384 13,878
11/30/1997 14,368 13,542 15,001 15,020 14,333
12/31/1997 14,496 13,662 15,258 15,459 14,497
1/31/1998 14,577 13,739 15,427 15,239 14,517
2/28/1998 15,670 14,769 16,539 16,265 15,472
3/31/1998 16,030 15,109 17,385 17,260 16,159
4/30/1998 16,473 15,526 17,560 17,376 16,324
5/31/1998 16,479 15,532 17,258 17,119 16,046
6/30/1998 16,555 15,603 17,959 17,338 16,347
7/31/1998 15,949 15,032 17,768 17,032 16,064
8/31/1998 13,332 12,565 15,202 14,498 13,871
9/30/1998 13,801 13,008 16,176 15,330 14,538
10/31/1998 14,715 13,869 17,490 16,518 15,703
11/30/1998 15,371 14,487 18,550 17,288 16,504
12/31/1998 15,932 15,016 19,618 17,876 17,141
1/31/1999 16,723 15,761 20,438 18,019 17,425
2/28/1999 16,104 15,178 19,803 17,765 17,026
3/31/1999 16,577 15,624 20,595 18,133 17,544
4/30/1999 17,945 16,913 21,393 19,826 18,577
5/31/1999 17,889 16,861 20,888 19,608 18,259
6/30/1999 18,605 17,535 22,047 20,177 19,065
7/31/1999 17,704 16,686 21,359 19,586 18,523
8/31/1999 17,154 16,167 21,253 18,859 18,186
9/30/1999 16,824 15,857 20,671 18,201 17,513
10/31/1999 17,608 16,596 21,979 19,249 18,357
11/30/1999 17,890 16,862 22,426 19,099 18,422
12/31/1999 18,264 17,214 23,746 19,191 18,989
1/31/2000 17,990 16,956 22,553 18,565 18,186
2/29/2000 17,317 16,322 22,126 17,186 17,420
3/31/2000 18,547 17,480 24,289 19,282 19,016
4/30/2000 18,467 17,405 23,559 19,059 18,805
5/31/2000 18,301 17,249 23,075 19,259 18,818
6/30/2000 17,615 16,602 23,644 18,379 18,611
7/31/2000 17,477 16,472 23,276 18,608 18,527
8/31/2000 18,425 17,365 24,721 19,643 19,600
9/30/2000 18,620 17,549 23,416 19,824 19,290
10/31/2000 19,192 18,088 23,317 20,311 19,444
11/30/2000 18,721 17,645 21,480 19,558 18,610
12/31/2000 19,627 18,499 21,585 20,538 19,360
1/31/2001 19,956 18,809 22,351 20,616 19,521
2/28/2001 19,700 18,567 20,313 20,043 18,580
3/31/2001 18,866 17,781 19,025 19,335 17,857
4/30/2001 19,940 18,793 20,503 20,282 18,870
5/31/2001 20,333 19,163 20,641 20,739 19,174
6/30/2001 19,555 18,431 20,139 20,278 18,652
7/31/2001 19,459 18,340 19,942 20,236 18,525
8/31/2001 18,449 17,389 18,694 19,424 17,658
9/30/2001 17,504 16,497 17,183 18,057 16,281
10/31/2001 17,752 16,731 17,511 17,902 16,387
11/30/2001 18,618 17,547 18,854 18,942 17,437
12/31/2001 19,174 18,071 19,020 19,389 17,700
1/31/2002 18,595 17,526 18,743 19,239 17,373
2/28/2002 18,410 17,351 18,381 19,270 17,277
3/31/2002 19,125 18,026 19,072 20,182 18,039
4/30/2002 18,571 17,503 17,916 19,489 17,271
5/31/2002 18,595 17,526 17,784 19,587 17,293
6/30/2002 17,140 16,154 16,517 18,463 16,088
07/31/2002 15,741 14,836 15,231 16,746 14,698
08/31/2002 15,854 14,942 15,330 16,873 14,796
09/30/2002 13,755 12,964 13,663 14,997 13,086
10/31/2002 14,173 13,358 14,866 16,108 14,047
11/30/2002 15,058 14,192 15,741 17,123 14,927
12/31/2002 14,367 13,540 14,817 16,380 14,217
01/31/2003 14,359 13,533 14,429 15,983 13,878
02/28/2003 14,100 13,289 14,213 15,556 13,531
03/31/2003 14,213 13,396 14,351 15,583 13,523
04/30/2003 15,230 14,354 15,533 16,954 14,665
05/31/2003 15,844 14,933 16,352 18,049 15,568
06/30/2003 16,086 15,161 16,561 18,275 15,745
7/31/2003 16,247 15,312 16,852 18,547 15,964
8/31/2003 16,513 15,563 17,181 18,837 16,234
9/30/2003 16,295 15,358 16,999 18,652 16,052
10/31/2003 17,069 16,088 17,961 19,794 16,938
11/30/2003 17,359 16,361 18,119 20,063 17,147
12/31/2003 18,460 17,398 19,069 21,299 18,198
1/31/2004 18,654 17,581 19,419 21,673 18,473
2/29/2004 19,058 17,963 19,689 22,137 18,862
3/31/2004 18,978 17,887 19,392 21,942 18,636
4/30/2004 18,542 17,476 19,088 21,407 18,293
5/31/2004 18,688 17,614 19,349 21,625 18,427
6/30/2004 18,963 17,873 19,724 22,136 18,832
================================================================================
Nuveen Balanced Municipal and Stock Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Colorado Municipal Bond Fund
Growth of an Assumed $10,000 Investment
Nuveen Balanced Nuveen Balanced Lehman Brothers
Municipal and Stock Municipal and Stock Lipper Balanced 10-Year Municipal
Fund (Offer Price) Fund (NAV) Funds Index Index S&P 500 Index
----------- ------------- -------------- --------------- -------------
8/96 $9,425 $10,000 $10,000 $10,000 $10,000
9/96 9,643 10,231 10,371 10,103 10,562
10/96 9,862 10,463 10,591 10,230 10,854
11/96 10,266 10,892 11,084 10,437 11,673
12/96 10,196 10,818 10,951 10,390 11,442
1/97 10,403 11,038 11,290 10,431 12,156
2/97 10,510 11,151 11,332 10,529 12,252
3/97 10,374 11,006 11,002 10,387 11,749
4/97 10,607 11,254 11,333 10,464 12,450
5/97 10,918 11,584 11,798 10,613 13,208
6/97 11,177 11,858 12,188 10,730 13,799
7/97 11,716 12,431 12,883 11,031 14,896
8/97 11,428 12,125 12,474 10,924 14,062
9/97 11,780 12,499 12,972 11,063 14,832
10/97 11,656 12,368 12,736 11,122 14,337
11/97 11,708 12,422 12,970 11,173 15,001
12/97 11,860 12,584 13,175 11,349 15,258
1/98 11,957 12,687 13,269 11,475 15,427
2/98 12,375 13,129 13,796 11,474 16,539
3/98 12,527 13,291 14,218 11,466 17,385
4/98 12,634 13,405 14,317 11,403 17,560
5/98 12,772 13,551 14,173 11,597 17,258
6/98 12,821 13,603 14,434 11,640 17,959
7/98 12,607 13,376 14,265 11,658 17,768
8/98 11,766 12,484 13,035 11,861 15,202
9/98 12,041 12,776 13,598 12,038 16,176
10/98 12,393 13,149 14,107 12,043 17,490
11/98 12,643 13,414 14,623 12,079 18,550
12/98 12,849 13,633 15,163 12,116 19,618
1/99 13,151 13,953 15,405 12,302 20,438
2/99 12,937 13,726 16,036 12,191 19,803
3/99 13,065 13,862 16,407 12,185 20,595
4/99 13,489 14,312 15,912 12,218 21,393
5/99 13,412 14,231 15,667 12,132 20,888
6/99 13,525 14,350 16,100 11,907 22,047
7/99 13,292 14,103 15,799 11,986 21,359
8/99 13,069 13,866 15,633 11,942 21,253
9/99 12,978 13,769 15,433 11,983 20,671
10/99 13,185 13,990 15,880 11,898 21,979
11/99 13,351 14,166 16,052 12,027 22,426
12/99 13,445 14,265 16,527 11,965 23,746
1/00 13,286 14,097 16,112 11,916 22,553
2/00 13,124 13,925 16,073 12,010 22,126
3/00 13,650 14,483 17,020 12,244 24,289
4/00 13,592 14,421 16,708 12,183 23,559
5/00 13,445 14,265 16,551 12,111 23,075
6/00 13,413 14,231 16,816 12,440 23,644
7/00 13,475 14,297 16,771 12,612 23,276
8/00 13,825 14,669 17,519 12,807 24,721
9/00 13,839 14,683 17,151 12,749 23,416
10/00 14,002 14,857 17,135 12,879 23,317
11/00 13,877 14,723 16,513 12,948 21,480
12/00 14,279 15,151 16,925 13,252 21,585
1/01 14,453 15,335 17,283 13,423 22,351
2/01 14,385 15,262 16,613 13,446 20,313
3/01 14,127 14,989 16,076 13,560 19,025
4/01 14,420 15,300 16,751 13,394 20,503
5/01 14,617 15,509 16,901 13,540 20,641
6/01 14,432 15,312 16,642 13,621 20,139
7/01 14,468 15,350 16,630 13,808 19,942
8/01 14,258 15,128 16,158 14,044 18,694
9/01 13,940 14,791 15,379 14,024 17,183
10/01 14,084 14,944 15,636 14,198 17,511
11/01 14,066 14,924 16,258 14,015 18,854
12/01 13,874 14,721 16,375 13,866 19,020
1/02 13,526 14,351 16,231 14,128 18,743
2/02 13,563 14,390 16,121 14,330 18,381
3/02 13,699 14,534 16,474 14,035 19,072
4/02 13,625 14,457 16,079 14,361 17,916
5/02 13,668 14,502 16,071 14,428 17,784
6/02 13,254 14,062 15,384 14,607 16,517
07/02 12,821 13,603 14,595 14,801 15,231
08/02 12,868 13,653 14,746 14,994 15,330
09/02 12,287 13,037 13,865 15,352 13,663
10/02 12,346 13,099 14,443 15,073 14,866
11/02 12,648 13,420 15,030 14,949 15,741
12/02 12,495 13,257 14,624 15,276 14,817
01/03 12,473 13,234 14,405 15,194 14,429
02/03 12,438 13,197 14,297 15,457 14,213
03/03 12,409 13,166 14,355 15,465 14,351
04/03 12,808 13,590 15,132 15,581 15,533
05/03 13,157 13,960 15,801 16,026 16,352
06/03 13,227 14,034 15,921 15,949 16,561
7/03 13,151 13,953 15,957 15,279 16,852
8/03 13,285 14,095 16,227 15,411 17,181
9/03 13,362 14,177 16,248 15,930 16,999
10/03 13,656 14,489 16,784 15,809 17,961
11/03 13,803 14,645 16,934 15,980 18,119
12/03 14,208 15,074 17,540 16,148 19,069
1/04 14,311 15,184 17,801 16,215 19,419
2/04 14,527 15,414 18,043 16,501 19,689
3/04 14,459 15,341 17,957 16,407 19,392
4/04 14,215 15,082 17,580 15,954 19,088
5/04 14,192 15,058 17,657 15,963 19,349
6/04 14,306 15,178 17,932 16,016 19,724
The graphs do not reflect the deduction of taxes that a shareholder may pay on
Fund distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen Funds compared with the corresponding indexes. The
Lipper Large-Cap Value Funds Index is a managed index that represents the
average annualized returns of the 30 largest funds in the Lipper Large-Cap
Value Funds category. The 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. The S&P 500
Index is an unmanaged index generally considered to be representative of the
U.S. stock market. The Lipper Balanced Funds Index is a managed index that
represents the average annualized returns of the 30 largest funds in the Lipper
Balanced Funds category. The Lehman Brothers 10-Year Municipal Bond Index is an
unmanaged index comprised of a broad range of investment-grade municipal bonds.
The index returns assume reinvestment of dividends and do not reflect any
initial or ongoing expenses. You cannot invest directly in an index. The Nuveen
Funds' returns include reinvestment of all dividends and distributions, and the
Funds' return at the offer price depicted in the chart reflects the initial
maximum sales charge applicable to 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 lower or higher than
the performance shown.
Annual Report Page 10
Nuveen Balanced Stock and Bond Fund
Growth of an Assumed $10,000 Investment
[CHART]
Nuveen Balanced Nuveen Balanced Lehman Brothers
Stock and Bond Stock annd Bond Lipper Balanced Intermediate
Fund (Offer Price) Fund (NAV) Fund Index Treasury Index S&P 500 Index
-------------- ----------- --------------- ------------------- -------------
8/96 $9,425 $10,000 $10,000 $10,000 $10,000
9/96 9,712 10,305 10,371 10,128 10,562
10/96 10,051 10,665 10,591 10,294 10,854
11/96 10,595 11,242 11,084 10,418 11,673
12/96 10,461 11,099 10,951 10,361 11,442
1/97 10,813 11,473 11,290 10,400 12,156
2/97 10,862 11,524 11,332 10,415 12,252
3/97 10,686 11,338 11,002 10,354 11,749
4/97 10,981 11,651 11,333 10,470 12,450
5/97 11,290 11,979 11,798 10,552 13,208
6/97 11,602 12,310 12,188 10,642 13,799
7/97 12,186 12,929 12,883 10,841 14,896
8/97 11,840 12,562 12,474 10,797 14,062
9/97 12,259 13,007 12,972 10,915 14,832
10/97 12,156 12,897 12,736 11,043 14,337
11/97 12,165 12,908 12,970 11,068 15,001
12/97 12,279 13,028 13,175 11,159 15,258
1/98 12,395 13,151 13,269 11,308 15,427
2/98 12,946 13,735 13,796 11,294 16,539
3/98 13,164 13,968 14,218 11,328 17,385
4/98 13,404 14,222 14,317 11,381 17,560
5/98 13,444 14,264 14,173 11,459 17,258
6/98 13,537 14,363 14,434 11,536 17,959
7/98 13,219 14,025 14,265 11,581 17,768
8/98 11,890 12,616 13,035 11,810 15,202
9/98 12,386 13,142 13,598 12,095 16,176
10/98 12,927 13,716 14,107 12,119 17,490
11/98 13,329 14,143 14,623 12,074 18,550
12/98 13,649 14,482 15,163 12,120 19,618
1/99 14,100 14,960 15,405 12,174 20,438
2/99 13,591 14,420 16,036 11,996 19,803
3/99 13,916 14,765 16,407 12,075 20,595
4/99 14,706 15,603 15,912 12,109 21,393
5/99 14,585 15,475 15,667 12,031 20,888
6/99 14,917 15,827 16,100 12,053 22,047
7/99 14,472 15,355 15,799 12,064 21,359
8/99 14,175 15,040 15,633 12,088 21,253
9/99 14,079 14,938 15,433 12,182 20,671
10/99 14,510 15,395 15,880 12,198 21,979
11/99 14,637 15,530 16,052 12,203 22,426
12/99 14,834 15,739 16,527 12,169 23,746
1/00 14,660 15,554 16,112 12,136 22,553
2/00 14,401 15,279 16,073 12,231 22,126
3/00 15,154 16,078 17,020 12,386 24,289
4/00 15,067 15,987 16,708 12,377 23,559
5/00 14,980 15,894 16,551 12,429 23,075
6/00 14,733 15,632 16,816 12,608 23,644
7/00 14,709 15,607 16,771 12,693 23,276
8/00 15,288 16,221 17,519 12,825 24,721
9/00 15,387 16,326 17,151 12,924 23,416
10/00 15,764 16,725 17,135 13,009 23,317
11/00 15,587 16,538 16,513 13,197 21,480
12/00 16,203 17,192 16,925 13,417 21,585
1/01 16,446 17,449 17,283 13,575 22,351
2/01 16,344 17,341 16,613 13,700 20,313
3/01 15,885 16,854 16,076 13,808 19,025
4/01 16,456 17,460 16,751 13,753 20,503
5/01 16,700 17,718 16,901 13,809 20,641
6/01 16,263 17,255 16,642 13,859 20,139
7/01 16,321 17,317 16,630 14,110 19,942
8/01 15,780 16,743 16,158 14,232 18,694
9/01 15,315 16,250 15,379 14,527 17,183
10/01 15,581 16,531 15,636 14,748 17,511
11/01 16,060 17,039 16,258 14,581 18,854
12/01 16,306 17,301 16,375 14,511 19,020
1/02 16,007 16,984 16,231 14,561 18,743
2/02 15,968 16,942 16,121 14,671 18,381
3/02 16,250 17,241 16,474 14,447 19,072
4/02 16,132 17,117 16,079 14,705 17,916
5/02 16,224 17,214 16,071 14,807 17,784
6/02 15,413 16,354 15,384 14,987 16,517
7/02 14,704 15,601 14,595 15,287 15,231
8/02 14,835 15,740 14,746 15,448 15,330
9/02 13,669 14,503 13,865 15,744 13,663
10/02 13,881 14,728 14,443 15,716 14,866
11/02 14,376 15,253 15,030 15,570 15,741
12/02 14,079 14,938 14,624 15,859 14,817
1/03 14,046 14,903 14,405 15,813 14,429
2/03 13,986 14,839 14,297 15,984 14,213
3/03 14,066 14,924 14,355 15,984 14,351
4/03 14,661 15,555 15,132 16,016 15,533
5/03 15,156 16,081 15,801 16,264 16,352
6/03 15,273 16,205 15,921 16,238 16,561
7/03 15,159 16,084 15,957 15,883 16,852
8/03 15,333 16,269 16,227 15,905 17,181
9/03 15,345 16,282 16,248 16,235 16,999
10/03 15,731 16,690 16,784 16,076 17,961
11/03 15,899 16,869 16,934 16,072 18,119
12/03 16,579 17,591 17,540 16,193 19,069
1/04 16,715 17,735 17,801 16,273 19,419
2/04 17,021 18,060 18,043 16,424 19,689
3/04 17,018 18,056 17,957 16,540 19,392
4/04 16,609 17,623 17,580 16,166 19,088
5/04 16,677 17,695 17,657 16,120 19,349
6/04 16,846 17,874 17,932 16,154 19,724
The graph does not reflect the deduction of taxes that a shareholder may pay on
Fund distributions or the redemption of shares.
The index comparisons show the change in value of a $10,000 investment in the
Class A shares of the Nuveen Fund compared with the corresponding indexes. The
Lipper Balanced Funds Index is a managed index that represents the average
annualized returns of the 30 largest funds in the Lipper Balanced Funds
category. The Lehman Brothers Intermediate Treasury Index is an unmanaged index
comprised of treasury securities with maturities ranging from 1-10 years. The
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 initial or ongoing expenses. You cannot invest directly
in an index. The Nuveen Fund's returns include reinvestment of all dividends
and distributions, and the Fund's return at the offer price depicted in the
chart reflects the initial maximum sales charge applicable to 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 lower or higher than the performance shown.
Annual Report Page 11
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/04 Nuveen Large-Cap Value Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $23.41 $22.95 $22.92 $23.49
--------------------------------------------------------------
Inception Date 8/07/96 8/07/96 8/07/96 8/07/96
--------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
performance. Returns without sales charges would be lower if the sales charge
were included. Current performance may be higher or lower than the performance
shown. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than their original cost.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. For the most recent month-end
performance visit www.nuveen.com or call (800) 257-8787.
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. Returns may reflect a voluntary expense limitation by the Fund's
investment adviser which may be modified or discontinued at any time without
notice.
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 17.90% 11.10%
------------------------------------------
5-Year 0.41% -0.78%
------------------------------------------
Since Inception 8.48% 7.67%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 16.97% 12.97%
------------------------------------------
5-Year -0.33% -0.51%
------------------------------------------
Since Inception 7.68% 7.68%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 17.06%
------------------------------------------
5-Year -0.33%
------------------------------------------
Since Inception 7.67%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 18.20%
------------------------------------------
5-Year 0.67%
------------------------------------------
Since Inception 8.78%
------------------------------------------
Top Five Stock Sectors/1/
Financials 28.74%
------------------------------------------
Consumer Discretionary 17.26%
------------------------------------------
Industrials 11.76%
------------------------------------------
Energy 11.27%
------------------------------------------
Healthcare 9.17%
------------------------------------------
Portfolio Allocation/1/
[CHART]
Equities 98.89%
Short-Term Investments 1.11%
Top Five Stock Holdings/1/
Bank of America Corporation 4.88%
--------------------------------------------------
Citigroup Inc. 4.68%
--------------------------------------------------
Wells Fargo & Company 3.92%
--------------------------------------------------
J.P. Morgan Chase & Co. 3.57%
--------------------------------------------------
ConocoPhillips 3.52%
--------------------------------------------------
Portfolio Statistics
Net Assets ($000) $554,747
--------------------------------------------------
Average Market Capitalization (Stocks) $93 billion
--------------------------------------------------
Number of Stocks 47
--------------------------------------------------
Expense Ratio/2/ 1.36%
--------------------------------------------------
- --------------------------------------------------------------------------------
1As a percentage of total holdings as of June 30, 2004. Holdings are subject to
change.
2Class A shares after credit/reimbursement for the 12 months ended June 30,
2004.
Annual Report l Page 12
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/04 Nuveen Balanced Municipal and Stock Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------------------
NAV $21.96 $22.99 $22.96 $21.57
--------------------------------------------------------------
Latest Dividend/1/ $0.0340 $0.0210 $0.0210 $0.0375
--------------------------------------------------------------
Inception Date 8/07/96 8/07/96 8/07/96 8/07/96
--------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
performance. Returns without sales charges would be lower if the sales charge
were included. Current performance may be higher or lower than the performance
shown. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than their original cost.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. For the most recent month-end
performance visit www.nuveen.com or call (800) 257-8787.
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. Returns may reflect a voluntary expense limitation by the Fund's
investment adviser which may be modified or discontinued at any time without
notice.
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 8.13% 1.91%
------------------------------------------
5-Year 1.14% -0.05%
------------------------------------------
Since Inception 5.37% 4.59%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 7.36% 3.36%
------------------------------------------
5-Year 0.39% 0.21%
------------------------------------------
Since Inception 4.60% 4.60%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 7.32%
------------------------------------------
5-Year 0.38%
------------------------------------------
Since Inception 4.59%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 8.48%
------------------------------------------
5-Year 1.39%
------------------------------------------
Since Inception 5.65%
------------------------------------------
Top Five Stock Sectors/2/
Financials 13.15%
------------------------------------------
Consumer Discretionary 7.95%
------------------------------------------
Industrials 5.38%
------------------------------------------
Energy 5.14%
------------------------------------------
Healthcare 4.33%
------------------------------------------
Yields/4/
A Shares NAV Offer
-----------------------------
SEC 30-Day Yield 2.33% 2.19%
-----------------------------
Distribution Rate 1.85% 1.75%
-----------------------------
B Shares NAV
-----------------------------
SEC 30-Day Yield 1.58%
-----------------------------
Distribution Rate 1.09%
-----------------------------
C Shares NAV
-----------------------------
SEC 30-Day Yield 1.61%
-----------------------------
Distribution Rate 1.09%
-----------------------------
R Shares NAV
-----------------------------
SEC 30-Day Yield 3.19%
-----------------------------
Distribution Rate 2.08%
-----------------------------
Portfolio Allocation/2/
[CHART]
Municipal Bonds 52.50%
Short-Term Investments 1.13%
Equities 46.37%
Top Five Stock Holdings/2/
Bank of America Corporation 2.21%
--------------------------------------------------
Citigroup Inc. 2.17%
--------------------------------------------------
Wells Fargo & Company 1.86%
--------------------------------------------------
J.P. Morgan Chase & Co. 1.70%
--------------------------------------------------
ConocoPhillips 1.58%
--------------------------------------------------
Portfolio Statistics
Net Assets ($000) $88,842
--------------------------------------------------
Average Market Capitalization (Stocks) $93 billion
--------------------------------------------------
Number of Stocks 47
--------------------------------------------------
Average Duration (Bonds) 4.00
--------------------------------------------------
Expense Ratio/3/ 1.25%
--------------------------------------------------
- --------------------------------------------------------------------------------
1Paid July 1, 2004. This is the latest monthly tax-exempt dividend declared
during the period ended June 30, 2004. 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.
2As a percentage of total holdings as of June 30, 2004. Holdings are subject to
change.
3Class A shares after credit/reimbursement for the 12 months ended June 30,
2004.
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 13
- --------------------------------------------------------------------------------
Fund Spotlight as of 6/30/04 Nuveen Balanced Stock and Bond Fund
================================================================================
Quick Facts
A Shares B Shares C Shares R Shares
--------------------------------------------------
NAV $24.56 $24.56 $24.58 $24.56
--------------------------------------------------
Inception Date 8/07/96 8/07/96 8/07/96 8/07/96
--------------------------------------------------
Returns quoted represent past performance which is no guarantee of future
performance. Returns without sales charges would be lower if the sales charge
were included. Current performance may be higher or lower than the performance
shown. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than their original cost.
Returns do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of shares. For the most recent month-end
performance visit www.nuveen.com or call (800) 257-8787.
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. Returns may reflect a voluntary expense limitation by the Fund's
investment adviser which may be modified or discontinued at any time without
notice.
Average Annual Total Returns as of 6/30/04
A Shares NAV Offer
------------------------------------------
1-Year 10.29% 3.93%
------------------------------------------
5-Year 2.47% 1.27%
------------------------------------------
Since Inception 7.53% 6.73%
------------------------------------------
B Shares w/o CDSC w/CDSC
------------------------------------------
1-Year 9.48% 5.48%
------------------------------------------
5-Year 1.71% 1.54%
------------------------------------------
Since Inception 6.73% 6.73%
------------------------------------------
C Shares NAV
------------------------------------------
1-Year 9.52%
------------------------------------------
5-Year 1.72%
------------------------------------------
Since Inception 6.74%
------------------------------------------
R Shares NAV
------------------------------------------
1-Year 10.56%
------------------------------------------
5-Year 2.73%
------------------------------------------
Since Inception 7.80%
------------------------------------------
Top Five Stock Sectors/1/
Financials 17.27%
------------------------------------------
Consumer Discretionary 10.41%
------------------------------------------
Industrials 7.05%
------------------------------------------
Energy 6.78%
------------------------------------------
Healthcare 5.69%
------------------------------------------
Yields/3/
A Shares NAV Offer
------------------------------
SEC 30-Day 1.20% 1.13%
------------------------------
Distribution Rate 2.24% 2.11%
------------------------------
B Shares NAV
------------------------------
SEC 30-Day 0.47%
------------------------------
Distribution Rate 1.50%
------------------------------
C Shares NAV
------------------------------
SEC 30-Day 0.47%
------------------------------
Distribution Rate 1.49%
------------------------------
R Shares NAV
------------------------------
SEC 30-Day 1.47%
------------------------------
Distribution Rate 2.50%
------------------------------
Portfolio Allocation/1/
[CHART]
Equities 61.23%
U.S. Government Obligations 35.85%
Short-Term Investments 2.92%
Top Five Stock Holdings/1/
Bank of America Corporation 2.88%
--------------------------------------------------
Citigroup Inc. 2.80%
--------------------------------------------------
Wells Fargo & Company 2.36%
--------------------------------------------------
J.P. Morgan Chase & Co. 2.21%
--------------------------------------------------
ConocoPhillips 2.12%
--------------------------------------------------
Portfolio Statistics
Net Assets ($000) $63,520
--------------------------------------------------
Average Market Capitalization (Stocks) $92 billion
--------------------------------------------------
Number of Stocks 47
--------------------------------------------------
Average Duration (Bonds) 4.21
--------------------------------------------------
Expense Ratio/2/ 1.25%
--------------------------------------------------
- --------------------------------------------------------------------------------
1As a percentage of total holdings as of June 30, 2004. Holdings are subject to
change.
2Class A Shares after credit/reimbursement for the 12 months ended June 30,
2004.
3Distribution 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 14
Portfolio of Investments
NUVEEN NWQ MULTI-CAP VALUE FUND
June 30, 2004
Market
Shares Description Value
- ---------------------------------------------------------------------------------
COMMON STOCKS - 91.8%
Consumer Discretionary - 4.3%
150,000 Delphi Corporation $ 1,602,000
221,032 Liberty Media Corporation - Class A # 1,987,078
8,551 Liberty Media International, Inc. - Class A # 317,242
141,700 Toys "R" Us, Inc. # 2,257,281
- ---------------------------------------------------------------------------------
Consumer Staples - 5.1%
105,000 Albertson's, Inc. 2,786,700
90,700 Altria Group, Inc. 4,539,535
- ---------------------------------------------------------------------------------
Energy - 11.2%
43,340 ConocoPhillips 3,306,409
89,200 Kerr-McGee Corporation 4,796,284
108,000 Noble Energy, Inc. 5,508,000
87,000 Transocean Inc. # 2,517,780
- ---------------------------------------------------------------------------------
Financials - 34.6%
56,000 American Home Mortgage Investment Corp. 1,452,080
166,000 AmeriCredit Corp. # 3,241,980
167,000 Aon Corporation 4,754,490
35,855 Bank of America Corporation 3,034,050
79,700 Countrywide Financial Corporation 5,598,925
70,100 Fannie Mae 5,002,336
90,000 FelCor Lodging Trust Inc. # 1,089,000
121,870 Friedman, Billings, Ramsey Group, Inc. - Class A 2,411,807
29,400 Genworth Financial Inc. - Class A # 674,730
39,800 The Hartford Financial Services Group, Inc. 2,735,852
225,000 IndyMac Bancorp, Inc. 7,110,000
78,000 J.P. Morgan Chase & Co. 3,024,060
27,400 Loews Corporation 1,642,904
128,000 MFA Mortgage Investments, Inc. 1,139,200
22,000 MGIC Investment Corporation 1,668,920
61,000 PMA Capital Corporation - Class A # 549,000
101,000 Radian Group Inc. 4,837,900
- ---------------------------------------------------------------------------------
Healthcare - 5.0%
50,500 Aetna Inc. 4,292,500
70,000 HCA Inc. 2,911,300
- ---------------------------------------------------------------------------------
Industrials - 8.7%
29,500 Ingresoll-Rand Company - Class A 2,015,145
65,700 Lockheed Martin Corporation 3,421,656
60,000 Northrop Grumman Corporation 3,222,000
110,000 Raytheon Company 3,934,700
- ---------------------------------------------------------------------------------
Information Technology - 13.0%
178,000 Agilent Technologies, Inc. # 5,211,840
221,800 Computer Associates International, Inc. 6,223,708
- ----
15
Portfolio of Investments
NUVEEN NWQ MULTI-CAP VALUE FUND (continued)
June 30, 2004
Market
Shares Description Value
- --------------------------------------------------------------------------------------
Information Technology (continued)
105,000 Comverse Technology, Inc. # $ 2,093,700
151,500 Mattson Technology, Inc. # 1,821,030
776,000 Quantum Corporation # 2,405,600
120,000 SonicWALL, Inc. # 1,032,000
- --------------------------------------------------------------------------------------
Materials - 7.0%
170,000 Barrick Gold Corporation 3,357,500
63,000 Bowater Incorporated 2,620,170
85,000 Packaging Corp of America 2,031,500
135,000 Sappi Limited - Sponsored ADR 2,072,250
- --------------------------------------------------------------------------------------
Telecommunication Services - 1.4%
115,000 Sprint Corporation 2,024,000
- --------------------------------------------------------------------------------------
Utilities - 1.5%
56,600 FirstEnergy Corp. 2,117,406
- --------------------------------------------------------------------------------------
Total Common Stock (cost $113,204,126) 132,393,548
------------------------------------------------------------------------
Principal Market
Amount (000) Description Value
- --------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 9.8%
$ 14,153 State Street Bank Repurchase Agreement, 1.170%, dated 14,153,000
- ------------ 6/30/04, due 7/01/04, repurchase price $14,153,460,
collateralized by U.S. Treasury Bonds
------------------------------------------------------------------------
Total Short-Term Investments (cost $14,153,000) 14,153,000
------------------------------------------------------------------------
Total Investments (cost $127,357,126) - 101.6% 146,546,548
------------------------------------------------------------------------
Other Assets Less Liabilities - (1.6)% (2,315,154)
------------------------------------------------------------------------
Net Assets - 100% $144,231,394
------------------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
16
Portfolio of Investments
NUVEEN LARGE-CAP VALUE FUND
June 30, 2004
Market
Shares Description Value
- ---------------------------------------------------------------------------------
COMMON STOCKS - 98.8%
Consumer Discretionary - 17.2%
377,650 Clear Channel Communications, Inc. $ 13,954,168
481,189 Comcast Corporation - Class A # 13,487,728
100,699 Gannett Co., Inc 8,544,310
103,350 IAC/InterActiveCorp # 3,114,969
508,432 Koninklijke (Royal) Philips Electronics N.V. 13,829,350
104,900 Lowe's Companies, Inc. 5,512,495
276,450 Masco Corporation 8,619,711
156,850 R. R. Donnelley & Sons Company 5,179,187
264,300 Staples, Inc. 7,746,633
142,400 Target Corporation 6,047,728
545,100 Time Warner Inc. # 9,582,858
- ---------------------------------------------------------------------------------
Consumer Staples - 4.2%
333,100 Archer-Daniels-Midland Company 5,589,418
109,300 The Clorox Company 5,878,154
215,050 PepsiCo, Inc. 11,586,894
- ---------------------------------------------------------------------------------
Energy - 11.3%
208,850 BP plc, Sponsored ADR 11,188,095
255,934 ConocoPhillips 19,525,205
241,050 Exxon Mobil Corporation 10,705,031
302,475 Marathon Oil Corporation 11,445,654
197,350 Occidental Petroleum Corporation 9,553,714
- ---------------------------------------------------------------------------------
Financials - 28.6%
319,650 Bank of America Corporation 27,048,783
557,011 Citigroup Inc. 25,901,012
152,700 Fannie Mae 10,896,672
127,100 The Goldman Sachs Group, Inc. 11,967,736
509,750 J.P. Morgan Chase & Co. 19,763,008
509,100 MBNA Corporation 13,129,689
324,956 MetLife, Inc. 11,649,673
323,950 Morgan Stanley 17,094,842
379,650 Wells Fargo & Company 21,727,370
- ---------------------------------------------------------------------------------
Healthcare - 9.2%
168,300 Aventis S.A., Sponsored ADR 12,802,581
252,950 Baxter International Inc. 8,729,305
394,250 GlaxoSmithKline plc, ADR 16,345,605
376,800 Pfizer Inc. 12,916,704
- ---------------------------------------------------------------------------------
Industrials - 11.7%
741,650 Cedeant Corporation 18,155,592
77,300 Corinthian Colleges, Inc. # 1,912,402
122,400 Deere & Company 8,585,136
437,850 General Electric Company 14,186,340
- ----
17
Portfolio of Investments
NUVEEN LARGE-CAP VALUE FUND (continued)
June 30, 2004
Market
Shares Description Value
- --------------------------------------------------------------------------------------
Industrials (continued)
415,100 Tyco International Ltd. $ 13,756,414
278,900 Waste Management, Inc. 8,548,285
- --------------------------------------------------------------------------------------
Information Technology - 6.9%
350,611 Hewlett-Packard Company 7,397,892
127,100 International Business Machines Corporation (IBM) 11,203,865
491,100 Microsoft Corporation 14,025,816
298,700 Motorola, Inc. 5,451,275
- --------------------------------------------------------------------------------------
Materials - 0.5%
65,900 E. I. du Pont de Nemors and Company 2,927,278
- --------------------------------------------------------------------------------------
Telecommunication Services - 2.7%
580,450 BellSouth Corporation 15,219,399
- --------------------------------------------------------------------------------------
Utilities - 6.5%
146,250 Dominion Resources, Inc. 9,225,450
272,450 Entergy Corporation 15,259,922
271,850 Public Service Enterprise Group Incorporated 10,882,153
- --------------------------------------------------------------------------------------
Total Common Stock (cost $444,427,407) 547,801,501
------------------------------------------------------------------------
Principal Market
Amount (000) Description Value
- --------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
$ 6,129 State Street Bank Repurchase Agreement, 1.170%, dated 6,128,621
- ------------ 6/30/04, due 7/01/04, repurchase price $6,128,820,
collateralized by U.S. Treasury Bonds
------------------------------------------------------------------------
Total Short-Term Investments (cost $6,128,621) 6,128,621
------------------------------------------------------------------------
Total Investments (cost $450,556,028) - 99.9% 553,930,122
------------------------------------------------------------------------
Other Assets Less Liabilities - 0.1% 816,776
------------------------------------------------------------------------
Net Assets - 100% $554,746,898
------------------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
18
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
June 30, 2004
Market
Shares Description Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 46.4%
Consumer Discretionary - 7.9%
26,850 Clear Channel Communications, Inc. $ 992,108
36,125 Comcast Corporation - Class A # 1,012,584
7,893 Gannett Company Inc 669,721
7,700 IAC/InterActiveCorp # 232,078
37,704 Koninklijke (Royal) Philips Electronics N.V. 1,025,549
7,250 Lowe's Companies, Inc. 380,988
20,250 Masco Corporation 631,395
11,700 R. R. Donnelley & Sons Company 386,334
19,650 Staples, Inc. 575,941
10,217 Target Corporation 433,916
41,000 Time Warner Inc. # 720,780
- --------------------------------------------------------------------------------
Consumer Staples - 1.9%
24,300 Archer-Daniels-Midland Company 407,754
7,800 The Clorox Company 419,484
15,650 PepsiCo, Inc. 843,222
- --------------------------------------------------------------------------------
Energy - 5.1%
15,600 BP plc, Sponsored ADR 835,692
18,445 ConocoPhillips 1,407,169
17,900 Exxon Mobil Corporation 794,939
21,891 Marathon Oil Corporation 828,355
14,450 Occidental Petroleum Corporation 699,525
- --------------------------------------------------------------------------------
Financial - 13.3%
23,200 Bank of America Corporation 1,963,184
41,410 Citigroup Inc. 1,925,565
11,450 Fannie Mae 817,072
9,150 The Goldman Sachs Group, Inc. 861,564
39,050 J.P. Morgan Chase & Co. 1,513,969
37,150 MBNA Corporation 958,099
23,651 MetLife, Inc. 847,888
23,800 Morgan Stanley 1,255,926
28,000 Wells Fargo & Company 1,602,440
- --------------------------------------------------------------------------------
Healthcare - 4.4%
12,850 Aventis S.A., Sponsored ADR 977,500
18,800 Baxter International Inc. 648,788
30,650 GlaxoSmithKline plc, ADR 1,270,749
29,150 Pfizer Inc. 999,262
- --------------------------------------------------------------------------------
Industrials - 5.4%
53,850 Cedeant Corporation 1,318,248
5,900 Corinthian Colleges, Inc. # 145,966
9,100 Deere & Company 638,274
32,650 General Electric Company 1,057,860
- ----
19
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued)
June 30, 2004
Market
Shares Description Value
- --------------------------------------------------------------------------------
Industrials (continued)
29,650 Tyco International Ltd. $ 982,601
21,150 Waste Management, Inc. 648,248
- --------------------------------------------------------------------------------
Information Technology - 3.2%
27,051 Hewlett-Packard Company 570,776
9,500 International Business Machines Corporation (IBM) 837,425
36,550 Microsoft Corporation 1,043,868
22,900 Motorola, Inc. 417,925
- --------------------------------------------------------------------------------
Materials - 1.0%
19,500 E. I. du Pont de Nemors and Company 866,190
- --------------------------------------------------------------------------------
Telecommunication Services - 1.3%
43,200 BellSouth Corporation 1,132,704
- --------------------------------------------------------------------------------
Utilities - 2.9%
10,850 Dominion Resources, Inc. 684,418
19,700 Entergy Corporation 1,103,397
19,700 Public Service Enterprise Group Incorporated 788,588
- --------------------------------------------------------------------------------
Total Common Stocks (cost $33,392,840) 41,176,028
------------------------------------------------------------------------
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- -------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 52.5%
Alabama - 0.5%
$ 455 Alabama Water Pollution Control Authority, Revolving Fund 8/05 at 100.00 AAA 479,989
Loan Bonds, Series 1994A, 6.625%, 8/15/08 (Pre-refunded to
8/15/05) - AMBAC Insured
- -------------------------------------------------------------------------------------------------------------
California - 7.9%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 642,890
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/25 - AMBAC Insured
2,495 Escondido, California, FNMA Multifamily Housing Revenue 7/05 at 101.50 AAA 2,592,829
Refunding Bonds, Morning View Terrace Apartments, Series
1997B, 5.400%, 1/01/27 (Mandatory put 7/01/07)
735 Northern California Power Agency, Geothermal Project 3 No Opt. Call BBB+ 791,735
Revenue Bonds, Series 1993, 5.650%, 7/01/07
250 Orange County, California, Refunding Recovery Bonds, Series No Opt. Call AAA 285,370
1995A, 6.000%, 6/01/10 - MBIA Insured
1,495 Palmdale Civic Authority, California, Revenue Bonds, Civic 7/07 at 102.00 AAA 1,616,633
Center Refinancing, Series 1997A, 5.375%, 7/01/12 - MBIA
Insured
1,000 San Diego County, California, Certificates of 9/09 at 101.00 Baa3 1,057,030
Participation, Burnham Institute, Series 1999, 5.700%,
9/01/11
- -------------------------------------------------------------------------------------------------------------
Colorado - 4.1%
1,000 Denver City and County, Colorado, Airport System Revenue 11/06 at 102.00 AAA 1,066,870
Bonds, Series 1996B, 5.625%, 11/15/08 (Alternative Minimum
Tax) - MBIA Insured
1,000 Denver City and County, Colorado, Airport Special 1/09 at 101.00 AAA 1,098,050
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 1,459,880
Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - MBIA Insured
- -------------------------------------------------------------------------------------------------------------
Connecticut - 2.3%
535 Connecticut Health and Educational Facilities Authority, No Opt. Call Ba1 526,547
Revenue Bonds, Hospital for Special Care, Series 1997B,
5.125%, 7/01/07
1,485 Connecticut Development Authority, First Mortgage Gross 12/06 at 103.00 BBB+ 1,538,831
Revenue Refunding Healthcare Bonds, Elim Park Baptist
Home, Inc. Project, Series 1998A, 4.875%, 12/01/07
- ----
20
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
District of Columbia - 0.7%
District of Columbia, General Obligation Refunding Bonds,
Series 1994A-1:
$ 245 6.500%, 6/01/10 - MBIA Insured No Opt. Call AAA $ 285,619
255 6.500%, 6/01/10 - MBIA Insured No Opt. Call AAA 295,055
- ---------------------------------------------------------------------------------------------------------------
Georgia - 1.0%
2,000 Fulton County Development Authority, Georgia, Special 5/08 at 101.00 CCC 863,700
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 6/06 at 102.00 AAA 25,375
Mortgage Resolution 1 Bonds, 1996A-2, 5.875%, 12/01/19
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
Idaho - 0.6%
550 Idaho Housing and Finance Association, Single Family 1/07 at 102.00 Aa3 566,148
Mortgage Bonds, Series 1997D, 5.950%, 7/01/09 (Alternative
Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
Illinois - 2.6%
1,075 Bolingbrook, Will and DuPage Counties, Illinois, No Opt. Call AAA 1,219,158
Residential 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 278,618
200 5.250%, 8/01/12 8/08 at 100.00 Baa2 205,872
580 5.300%, 8/01/13 8/08 at 100.00 Baa2 594,877
- ---------------------------------------------------------------------------------------------------------------
Maine - 0.3%
255 Winslow, Maine, General Obligation Tax Increment Financing 3/07 at 102.00 AAA 278,575
Bonds, Crowe Rope Industries Project, Series 1997A,
6.000%, 3/01/11 (Alternative Minimum Tax) - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Massachusetts - 3.1%
1,885 Massachusetts Development Finance Agency, Resource Recovery 12/08 at 102.00 BBB 1,791,900
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 272,020
Revenue Bonds, Melrose-Wakefield Healthcare Corp., Series
1996C, 5.700%, 7/01/08 (Pre-refunded to 7/01/06)
685 Massachusetts Turnpike Authority, Western Turnpike Revenue 7/04 at 100.00 AAA 689,316
Bonds, Series 1997A, 5.550%, 1/01/17 - MBIA Insured
- ---------------------------------------------------------------------------------------------------------------
Michigan - 0.5%
540 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 422,496
Bonds, Detroit Medical Center Obligated Group, Series
1998A, 5.000%, 8/15/13
- ---------------------------------------------------------------------------------------------------------------
Mississippi - 2.1%
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+ 1,313,129
500 5.400%, 12/01/11 12/07 at 100.00 BBB+ 508,800
- ---------------------------------------------------------------------------------------------------------------
Nevada - 0.9%
460 Henderson, Nevada, Healthcare Facility Revenue Refunding 7/04 at 102.00 AAA 469,246
Bonds, Catholic Healthcare West, Series 1994A, 5.000%,
7/01/20 (Pre-refunded to 7/01/04) - AMBAC Insured
360 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aa3 372,751
Mezzanine Series 1997B-1, 6.000%, 4/01/15 (Alternative
Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------
New Hampshire - 1.7%
1,450 New Hampshire Higher Educational and Health Facilities 1/07 at 102.00 BBB- 1,487,729
Authority, Revenue Bonds, New Hampshire College, Series
1997, 6.200%, 1/01/12
- ---------------------------------------------------------------------------------------------------------------
New York - 9.9%
1,000 City University of New York, New York, Refunding No Opt. Call AA- 1,071,660
Certificates of Participation, John Jay College of
Criminal Justice Project, Series 1995A, 6.000%, 8/15/06
- ----
21
Portfolio of Investments
NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued)
June 30, 2004
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
- ---------------------------------------------------------------------------------------------------------------
New York (continued)
$ 500 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA $ 546,805
Facilities Service Contract Bonds, Series 1993O, 5.750%,
7/01/07
250 New York, New York, General Obligation Bonds, Fiscal Series 11/06 at 101.50 A 263,535
1997D, 5.875%, 11/01/11
500 New York, New York, General Obligation Bonds, Fiscal Series 4/07 at 101.00 A 541,680
1997I, 6.000%, 4/15/09
1,000 New York, New York, General Obligation Bonds, Fiscal Series 8/07 at 101.00 A 1,058,980
1998D, 5.500%, 8/01/10
285 New York State Urban Development Corporation, Revenue No Opt. Call AA- 304,092
Refunding Bonds, State Facilities, Series 1995, 6.250%,
4/01/06
1,700 New York State Urban Development Corporation, Special 7/04 at 101.00 AA- 1,721,352
Project Revenue Bonds, Cornell Center Grant, Series 1993,
5.900%, 1/01/07
1,430 New York State Urban Development Corporation, Youth No Opt. Call AA- 1,570,555
Facilities Service Contract Revenue Bonds, Series 1997,
6.500%, 4/01/07
New York State Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C:
1,000 5.500%, 6/01/15 (DD, settling 7/01/04) 6/10 at 100.00 AA- 1,059,140
500 5.500%, 6/01/16 6/11 at 100.00 AA- 530,800
- ---------------------------------------------------------------------------------------------------------------
North Carolina - 2.0%
1,455 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 1,780,323
Revenue Bonds, Series 1980, 10.500%, 1/01/10
- ---------------------------------------------------------------------------------------------------------------
Ohio - 3.6%
1,750 Dayton, Ohio, Special Facilities Revenue Refunding Bonds, No Opt. Call BB+ 1,706,880
Emery Air Freight Corporation and Emery Worldwide
Airlines, Inc. - Guarantors, Series 1988C, 6.050%, 10/01/09
1,500 Lorain County, Ohio, Health Care Facilities Revenue 2/08 at 101.00 BBB 1,521,015
Refunding 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 1,094,480
Refunding Bonds, 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 836,874
1997A, 6.000%, 7/15/09 - FSA Insured
- ---------------------------------------------------------------------------------------------------------------
South Carolina - 2.0%
1,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA- 1,087,640
Installment Purchase Revenue Bonds, Series 2002, 5.875%,
12/01/19
775 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 687,704
Carolina, Tobacco Settlement Asset- Backed Bonds, Series
2001B, 6.000%, 5/15/22
- ---------------------------------------------------------------------------------------------------------------
Texas - 2.7%
2,000 Abilene Higher Education Authority, Inc., Texas, Student 11/08 at 100.00 Aa3 2,037,880
Loan Revenue Bonds, Subordinate Series 1998B, 5.050%,
7/01/13 (Alternative Minimum Tax)
250 San Antonio, Texas, Airport System Improvement Revenue 7/06 at 101.00 AAA 266,093
Bonds, Series 1996, 5.700%, 7/01/09 (Alternative Minimum
Tax) - FGIC Insured
90 Texas Department of Housing, Single Family Mortgage Revenue 9/06 at 102.00 AAA 94,476
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 210,010
Series 1995N, 6.000%, 5/01/08 (Alternative Minimum Tax) -
AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------
Washington - 1.7%
735 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 673,745
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
800 Washington Public Power Supply System, Nuclear Project 3 7/06 at 102.00 AAA 866,423
Revenue Refunding Bonds, Series 1996A, 5.700%, 7/01/09 -
AMBAC Insured
- ---------------------------------------------------------------------------------------------------------------
$46,800 Total Municipal Bonds (cost $46,437,011) 46,629,180
- ---------------------------------------------------------------------------------------------------------------
- ------------
- ----
22
Principal Market
Amount (000) Description Ratings** Value
- -------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
$1,000 Palm Beach County Health Facilities Authority, Florida, VMIG-1 $ 1,000,000
Revenue Bonds, Bethesda Healthcare System, Variable Rate
Demand Bonds, Series 2001, 1.100%, 12/01/31+
- ------------ -----------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,000,000) 1,000,000
-----------------------------------------------------------------------------------
Total Investments (cost $80,829,851) - 100.0% 88,805,208
-----------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% 37,179
-----------------------------------------------------------------------------------
Net Assets - 100% $88,842,387
-----------------------------------------------------------------------------------
# Non-income producing.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 registered
public accounting firm): Using the higher of Standard & Poor's or
Moody's rating.
(DD)Security purchased on a delayed delivery basis.
+ Security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term
security. The rate disclosed is that currently in effect. This
rate changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
- ----
23
Portfolio of Investments
NUVEEN BALANCED STOCK AND BOND FUND
June 30, 2004
Market
Shares Description Value
- -------------------------------------------------------------------------------
COMMON STOCKS - 61.4%
Consumer Discretionary - 10.4%
25,400 Clear Channel Communications, Inc. $ 938,530
33,120 Comcast Corporation - Class A # 928,354
7,194 Gannett Co., Inc 610,411
7,300 IAC/InterActiveCorp # 220,022
35,311 Koninklijke (Royal) Philips Electronics N.V. 960,459
7,300 Lowe's Companies, Inc. 383,615
19,650 Masco Corporation 612,687
11,100 R. R. Donnelley & Sons Company 366,522
18,550 Staples, Inc. 543,701
9,783 Target Corporation 415,484
36,950 Time Warner Inc. # 649,581
- -------------------------------------------------------------------------------
Consumer Staples - 2.6%
23,300 Archer-Daniels-Midland Company 390,974
8,300 The Clorox Company 446,374
15,250 PepsiCo, Inc. 821,670
- -------------------------------------------------------------------------------
Energy - 6.8%
14,600 BP plc, Sponsored ADR 782,122
17,705 ConocoPhillips 1,350,714
16,900 Exxon Mobil Corporation 750,529
20,743 Marathon Oil Corporation 784,915
13,400 Occidental Petroleum Corporation 648,694
- -------------------------------------------------------------------------------
Financials - 17.3%
21,700 Bank of America Corporation 1,836,254
38,274 Citigroup Inc. 1,779,741
10,850 Fannie Mae 774,256
8,850 The Goldman Sachs Group, Inc. 833,316
36,350 J.P. Morgan Chase & Co. 1,409,290
35,300 MBNA Corporation 910,387
21,600 MetLife, Inc. 774,360
22,300 Morgan Stanley 1,176,771
26,200 Wells Fargo & Company 1,499,426
- -------------------------------------------------------------------------------
Healthcare - 5.7%
12,050 Aventis S.A., Sponsored ADR 916,643
17,750 Baxter International Inc. 612,553
28,350 GlaxoSmithKline plc, ADR 1,175,391
26,800 Pfizer Inc. 918,704
- -------------------------------------------------------------------------------
Industrials - 7.1%
50,500 Cedeant Corporation 1,236,240
5,500 Corinthian Colleges, Inc. # 136,070
8,550 Deere & Company 599,697
30,750 General Electric Company 996,300
- ----
24
Market
Shares Description Value
- --------------------------------------------------------------------------------------
Industrials (continued)
27,650 Tyco International Ltd. $ 916,321
19,750 Waste Management, Inc. 605,338
- --------------------------------------------------------------------------------------
Information Technology - 4.2%
26,101 Hewlett-Packard Company 550,731
8,650 International Business Machines Corporation (IBM) 762,498
34,100 Microsoft Corporation 973,896
21,100 Motorola, Inc. 385,075
- --------------------------------------------------------------------------------------
Materials - 1.3%
18,250 E. I. du Pont de Nemors and Company 810,665
- --------------------------------------------------------------------------------------
Telecommunication Services - 1.7%
41,250 BellSouth Corporation 1,081,575
- --------------------------------------------------------------------------------------
Utilities - 4.3%
14,500 Dominion Resources, Inc. 914,660
18,600 Entergy Corporation 1,041,786
18,600 Public Service Enterprise Group Incorporated 744,558
- --------------------------------------------------------------------------------------
Total Common Stock (cost $33,700,752) 38,977,860
-----------------------------------------------------------------------
Principal Market
Amount (000) Description Value
- --------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 35.9%
U.S. Treasury Bonds - 9.2%
$ 2,650 7.250%, 5/15/16 3,204,534
1,200 7.250%, 8/15/22 1,470,751
1,095 6.000%, 2/15/26 1,180,248
- --------------------------------------------------------------------------------------
U.S. Treasury Notes - 26.7%
1,550 7.875%, 11/15/04 1,586,450
3,060 6.500%, 5/15/05 3,178,097
3,640 7.000%, 7/15/06 3,944,995
4,025 4.750%, 11/15/08 4,204,869
3,715 5.750%, 8/15/10 4,051,675
- --------------------------------------------------------------------------------------
$20,935 Total U.S. Government and Agency Obligations (cost 22,821,619
$19,904,410)
- --------------------------------------------------------------------------------------
- ------------
SHORT-TERM INVESTMENTS - 2.9%
$ 1,860 State Street Bank Repurchase Agreement, 1.170%, dated 1,859,527
- ------------ 6/30/04, due 7/01/04, repurchase price $1,859,587,
collateralized by U.S. Treasury Bonds
-----------------------------------------------------------------------
Total Short-Term Investments (cost $1,859,527) 1,859,527
-----------------------------------------------------------------------
Total Investments (cost $55,464,689) - 100.2% 63,659,006
-----------------------------------------------------------------------
Other Assets Less Liabilities - (0.2)% (138,846)
-----------------------------------------------------------------------
Net Assets - 100% $63,520,160
-----------------------------------------------------------------------
# Non-income producing.
See accompanying notes to financial statements.
- ----
25
Statement of Assets and Liabilities
June 30, 2004
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ------------------------------------------------------------------------------------------------------------------
Assets
Investments, at market value (cost $127,357,126,
$450,556,028, $80,829,851 and $55,464,689, respectively) $146,546,548 $553,930,122 $ 88,805,208 $63,659,006
Cash 332 -- -- --
Receivables:
Dividends 183,642 596,243 45,059 42,054
Interest 460 199 912,330 345,479
Investments sold 342,459 11,548,482 2,154,008 685,653
Reclaims 837 237,862 20,188 15,361
Shares sold 2,402,601 173,381 9,137 12,485
Other assets 49 145,379 29,092 14,794
- ------------------------------------------------------------------------------------------------------------------
Total assets 149,476,928 566,631,668 91,975,022 64,774,832
- ------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- -- 401,249 --
Payables:
Investments purchased 4,951,605 9,776,330 1,838,178 731,112
Shares redeemed 141,955 1,024,916 601,459 81,036
Accrued expenses:
Management fees 93,180 378,407 66,278 49,301
12b-1 distribution and service fees 39,890 171,458 37,572 24,182
Other 18,904 533,659 68,246 45,263
Dividends payable -- -- 119,653 323,778
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 5,245,534 11,884,770 3,132,635 1,254,672
- ------------------------------------------------------------------------------------------------------------------
Net assets $144,231,394 $554,746,898 $ 88,842,387 $63,520,160
- ------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 58,278,701 $434,120,679 $ 56,787,667 $33,311,927
Shares outstanding 3,139,699 18,541,368 2,585,593 1,356,377
Net asset value per share $ 18.56 $ 23.41 $ 21.96 $ 24.56
Offering price per share (net asset value per share
plus maximum sales charge of 5.75% of offering price) $ 19.69 $ 24.84 $ 23.30 $ 26.06
- ------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 9,321,745 $ 56,486,102 $ 23,109,915 $12,459,231
Shares outstanding 505,362 2,460,964 1,005,327 507,266
Net asset value and offering price per share $ 18.45 $ 22.95 $ 22.99 $ 24.56
- ------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 30,085,239 $ 43,607,036 $ 8,228,759 $ 8,632,133
Shares outstanding 1,630,567 1,902,693 358,324 351,255
Net asset value and offering price per share $ 18.45 $ 22.92 $ 22.96 $ 24.58
- ------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 46,545,709 $ 20,533,081 $ 716,046 $ 9,116,869
Shares outstanding 2,513,940 874,148 33,197 371,242
Net asset value and offering price per share $ 18.52 $ 23.49 $ 21.57 $ 24.56
- ------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------------------------
Capital paid-in $123,869,492 $508,478,985 $ 92,856,082 $57,728,350
Undistributed (Over-distribution of) net investment income 52,792 1,529,016 328,880 (247,776)
Accumulated net realized gain (loss) from investments and
foreign currency transactions 1,119,688 (58,635,197) (12,317,932) (2,154,731)
Net unrealized appreciation of investments and translation
of assets and liabilities denominated in foreign currencies 19,189,422 103,374,094 7,975,357 8,194,317
- ------------------------------------------------------------------------------------------------------------------
Net assets $144,231,394 $554,746,898 $ 88,842,387 $63,520,160
- ------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
26
Statement of Operations
Year Ended June 30, 2004
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- -------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign tax
withheld of $6,198, $165,457,
$12,304 and $11,661, respectively) $ 1,154,241 $10,877,382 $ 811,299 $ 757,941
Interest 80,898 121,205 2,686,566 1,140,675
- -------------------------------------------------------------------------------------
Total investment income 1,235,139 10,998,587 3,497,865 1,898,616
- -------------------------------------------------------------------------------------
Expenses
Management fees 634,131 4,753,246 698,468 479,238
12b-1 service fees - Class A 67,094 1,127,050 147,586 87,380
12b-1 distribution and service
fees - Class B 35,621 569,902 246,769 126,877
12b-1 distribution and service
fees - Class C 102,758 445,090 87,173 81,433
Shareholders' servicing agent fees
and expenses 99,438 949,896 95,020 91,602
Custodian's fees and expenses 34,666 150,402 64,611 57,659
Trustees' fees and expenses 2,548 17,622 4,914 2,931
Professional fees 17,974 58,116 30,187 11,041
Shareholders' reports - printing
and mailing expenses 51,564 338,531 27,813 27,446
Federal and state registration fees 72,830 57,877 38,960 38,124
Other expenses 3,746 9,280 3,159 2,438
- -------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 1,122,370 8,477,012 1,444,660 1,006,169
Custodian fee credit (356) (46) (2,875) (16)
Expense reimbursement -- -- (31,826) (71,482)
- -------------------------------------------------------------------------------------
Net expenses 1,122,014 8,476,966 1,409,959 934,671
- -------------------------------------------------------------------------------------
Net investment income 113,125 2,521,621 2,087,906 963,945
- -------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain from investments
and foreign currency transactions 2,554,924 63,970,155 5,028,663 4,828,811
Net change in unrealized
appreciation (depreciation) of
investments and translation of
assets and liabilities
denominated in foreign currencies 15,906,174 28,299,786 (71,855) 333,581
- -------------------------------------------------------------------------------------
Net gain 18,461,098 92,269,941 4,956,808 5,162,392
- -------------------------------------------------------------------------------------
Net increase in net assets from
operations $18,574,223 $94,791,562 $7,044,714 $6,126,337
- -------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
27
Statement of Changes in Net Assets
Multi-Cap Value
-----------------------------------------
For the Period
4/01/03
Year Ended through Year Ended
6/30/04 6/30/03 3/31/03*
- -----------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 113,125 $ 38,548 $ 145,183
Net realized gain (loss) from investments and foreign currency transactions 2,554,924 122,796 304,040
Net change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities denominated in foreign currencies 15,906,174 5,973,382 (5,274,898)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 18,574,223 6,134,726 (4,825,675)
- -----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (27,797) -- (4)
Class B -- -- --
Class C -- -- --
Class R (98,740) -- (210,892)
From accumulated net realized gains from investments:
Class A (650,859) -- --
Class B (61,582) -- --
Class C (178,376) -- --
Class R (810,096) -- --
- -----------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (1,827,450) -- (210,896)
- -----------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 103,762,702 5,366,743 10,856,508
Proceeds from shares issued to shareholders due to reinvestment of
distributions 1,620,555 -- 209,644
- -----------------------------------------------------------------------------------------------------------------------
105,383,257 5,366,743 11,066,152
Cost of shares redeemed (10,016,717) (1,494,636) (9,423,469)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 95,366,540 3,872,107 1,642,683
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 112,113,313 10,006,833 (3,393,888)
Net assets at the beginning of period 32,118,081 22,111,248 25,505,136
- -----------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $144,231,394 $32,118,081 $22,111,248
- -----------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of period $ 52,792 $ 66,204 $ 27,656
- -----------------------------------------------------------------------------------------------------------------------
Large-Cap Value
----------------------------
Year Ended Year Ended
6/30/04 6/30/03
- ---------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 2,521,621 $ 1,798,484
Net realized gain (loss) from investments and foreign currency transactions 63,970,155 (102,927,030)
Net change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities denominated in foreign currencies 28,299,786 43,579,772
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 94,791,562 (57,548,774)
- ---------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (1,759,497) (1,595,633)
Class B -- --
Class C -- --
Class R (114,953) (101,587)
From accumulated net realized gains from investments:
Class A -- --
Class B -- --
Class C -- --
Class R -- --
- ---------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (1,874,450) (1,697,220)
- ---------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 24,601,805 87,633,689
Proceeds from shares issued to shareholders due to reinvestment of
distributions 1,179,716 1,104,303
- ---------------------------------------------------------------------------------------------------------
25,781,521 88,737,992
Cost of shares redeemed (123,063,525) (192,651,951)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (97,282,004) (103,913,959)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,364,892) (163,159,953)
Net assets at the beginning of period 559,111,790 722,271,743
- ---------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 554,746,898 $ 559,111,790
- ---------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income at the end
of period $ 1,529,016 $ 915,032
- ---------------------------------------------------------------------------------------------------------
* 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.
See accompanying notes to financial statements.
- ----
28
Municipal and Stock
--------------------------
Year Ended Year Ended
6/30/04 6/30/03
- --------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 2,087,906 $ 2,160,209
Net realized gain (loss) from investments and foreign currency transactions 5,028,663 (10,792,040)
Net change in unrealized appreciation
(depreciation) of investments and translation of
assets and liabilities denominated in foreign
currencies (71,855) 7,224,223
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations 7,044,714 (1,407,608)
- --------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (1,393,216) (1,755,276)
Class B (249,910) (376,218)
Class C (88,677) (123,905)
Class R (19,798) (24,004)
From accumulated net realized gains from
investments:
Class A -- --
Class B -- --
Class C -- --
Class R -- --
- --------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to
shareholders (1,751,601) (2,279,403)
- --------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 11,626,916 5,250,088
Proceeds from shares issued to shareholders
due to reinvestment of distributions 1,182,513 1,560,296
- --------------------------------------------------------------------------------------------------------
12,809,429 6,810,384
Cost of shares redeemed (25,388,210) (20,873,670)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions (12,578,781) (14,063,286)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (7,285,668) (17,750,297)
Net assets at the beginning of period 96,128,055 113,878,352
- --------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 88,842,387 $ 96,128,055
- --------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net
investment income at the end of period $ 328,880 $ (7,029)
- --------------------------------------------------------------------------------------------------------
Stock and Bond
--------------------------
Year Ended Year Ended
6/30/04 6/30/03
- -------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 963,945 $ 972,480
Net realized gain (loss) from investments and foreign currency transactions 4,828,811 (6,256,468)
Net change in unrealized appreciation
(depreciation) of investments and translation of
assets and liabilities denominated in foreign
currencies 333,581 4,273,544
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations 6,126,337 (1,010,444)
- -------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From net investment income:
Class A (696,093) (737,489)
Class B (161,329) (145,321)
Class C (104,733) (89,537)
Class R (189,179) (137,291)
From accumulated net realized gains from
investments:
Class A -- (104,998)
Class B -- (33,635)
Class C -- (19,497)
Class R -- (16,128)
- -------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to
shareholders (1,151,334) (1,283,896)
- -------------------------------------------------------------------------------------------------------
Fund Share Transactions
Proceeds from sale of shares 10,317,373 9,965,412
Proceeds from shares issued to shareholders
due to reinvestment of distributions 716,257 850,593
- -------------------------------------------------------------------------------------------------------
11,033,630 10,816,005
Cost of shares redeemed (16,083,175) (12,911,626)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions (5,049,545) (2,095,621)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (74,542) (4,389,961)
Net assets at the beginning of period 63,594,702 67,984,663
- -------------------------------------------------------------------------------------------------------
Net assets at the end of period $63,520,160 $ 63,594,702
- -------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net
investment income at the end of period $ (247,776) $ (214,448)
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
- ----
29
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
Exchange-listed securities are generally valued at the last sales price on the
securities exchange on which such securities are primarily traded. Securities
traded on a securities exchange for which there are no transactions on a given
day or securities not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on Nasdaq are valued at the
Nasdaq Official Closing Price. The prices of fixed-income securities are
provided by a pricing service approved by the Funds' Board of Trustees and
based on the mean between the bid and asked prices. When price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service establishes fair market value based on yields or prices of
comparable securities, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. 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 when-issued and delayed delivery purchase commitments. At June 30, 2004,
Municipal and Stock had an outstanding delayed delivery purchase commitment of
$1,059,693. There were no such outstanding purchase commitments in any of the
other Funds.
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities,
when information is available. Interest income, which includes the amortization
of premiums and accretion of discounts for financial reporting purposes, is
recorded on an accrual basis.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal
fees incurred in the normal course of operations, audit fees, tax consulting
fees and, in some cases, workout expenditures. Workout expenditures are
incurred in an attempt to protect or enhance an investment, or to pursue other
claims or legal actions on behalf of the Fund's shareholders.
- ----
30
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 as a
dividend 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.
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 is a separate taxpayer for federal income tax purposes. 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 securities, which is
exempt from regular federal income tax when received by the Fund, to retain
such tax-exempt status 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, 2004, 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 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, 2004.
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 investments 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) of 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
- ----
31
Notes to Financial Statements (continued)
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 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. The Funds did not enter into any foreign currency
forward, options or futures contracts during the fiscal year ended June 30,
2004.
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.
Indemnifications
Under the Trust's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business the Trust
enters into contracts that provide general indemnifications to other parties.
The Trust's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Trust that have not yet
occurred. However, the Trust has not had prior claims or losses pursuant to
these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets 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
Year Ended 4/01/03 through
6/30/04 6/30/03
----------------------- ---------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 2,942,277 $ 49,738,681 300,816 $ 4,078,246
Class B 507,105 8,634,935 12,529 177,169
Class C 1,663,150 28,549,111 28,279 398,477
Class R 972,508 16,839,975 51,612 712,851
Shares issued to shareholders due to reinvestment of distributions:
Class A 37,794 603,000 -- --
Class B 3,213 50,990 -- --
Class C 5,328 84,612 -- --
Class R 55,180 881,953 -- --
- --------------------------------------------------------------------------------------------------------------------
6,186,555 105,383,257 393,236 5,366,743
- --------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (164,430) (2,802,564) (2,271) (33,729)
Class B (18,157) (315,720) (1,031) (15,063)
Class C (66,351) (1,133,029) -- --
Class R (352,086) (5,765,404) (107,396) (1,445,844)
- --------------------------------------------------------------------------------------------------------------------
(601,024) (10,016,717) (110,698) (1,494,636)
- --------------------------------------------------------------------------------------------------------------------
Net increase 5,585,531 $ 95,366,540 282,538 $ 3,872,107
- --------------------------------------------------------------------------------------------------------------------
----------------------
Year Ended
3/31/03*
---------------------
Shares Amount
- ------------------------------------------------------------------------------------------
Shares sold:
Class A 54,681 $ 658,284
Class B 1,703 20,270
Class C 161 1,993
Class R 791,727 10,175,961
Shares issued to shareholders due to reinvestment of distributions:
Class A -- --
Class B -- --
Class C -- --
Class R 17,874 209,644
- ------------------------------------------------------------------------------------------
866,146 11,066,152
- ------------------------------------------------------------------------------------------
Shares redeemed:
Class A (29,168) (333,415)
Class B -- --
Class C -- --
Class R (747,605) (9,090,054)
- ------------------------------------------------------------------------------------------
(776,773) (9,423,469)
- ------------------------------------------------------------------------------------------
Net increase 89,373 $ 1,642,683
- ------------------------------------------------------------------------------------------
* 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.
- ----
32
Large-Cap Value
-----------------------------------------------------
Year Ended Year Ended
6/30/04 6/30/03
------------------------- --------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Shares sold:
Class A 611,145 $ 12,950,111 4,207,565 $ 79,548,065
Class B 175,094 3,734,341 158,627 2,892,232
Class C 211,374 4,576,646 147,901 2,701,226
Class R 149,803 3,340,707 135,048 2,492,166
Shares issued to shareholders due to reinvestment
of distributions:
Class A 47,453 1,078,587 56,950 1,011,999
Class B -- -- -- --
Class C -- -- -- --
Class R 4,439 101,129 5,186 92,304
- --------------------------------------------------------------------------------------------------------
1,199,308 25,781,521 4,711,277 88,737,992
- --------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (4,442,979) (98,957,511) (9,012,293) (165,771,964)
Class B (524,477) (11,355,075) (812,265) (14,625,530)
Class C (458,603) (10,026,451) (551,070) (10,003,415)
Class R (121,849) (2,724,488) (119,887) (2,251,042)
- --------------------------------------------------------------------------------------------------------
(5,547,908) (123,063,525) (10,495,515) (192,651,951)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (4,348,600) $ (97,282,004) (5,784,238) $(103,913,959)
- --------------------------------------------------------------------------------------------------------
Municipal and Stock
-----------------------------------------------------
Year Ended Year Ended
6/30/04 6/30/03
------------------------- --------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Shares sold:
Class A 329,252 $ 7,206,388 142,491 $ 2,862,426
Class B 117,521 2,651,621 83,564 1,746,943
Class C 73,977 1,669,501 30,486 635,325
Class R 4,672 99,406 272 5,394
Shares issued to shareholders due to reinvestment
of distributions:
Class A 46,053 999,492 64,593 1,296,853
Class B 5,504 124,024 8,867 185,391
Class C 2,192 49,376 3,181 66,407
Class R 451 9,621 589 11,645
- --------------------------------------------------------------------------------------------------------
579,622 12,809,429 334,043 6,810,384
- --------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (665,075) (14,365,172) (510,378) (10,252,753)
Class B (344,316) (7,752,299) (404,586) (8,425,050)
Class C (138,169) (3,111,560) (102,874) (2,153,778)
Class R (7,631) (159,179) (2,120) (42,089)
- --------------------------------------------------------------------------------------------------------
(1,155,191) (25,388,210) (1,019,958) (20,873,670)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) (575,569) $ (12,578,781) (685,915) $(14,063,286)
- --------------------------------------------------------------------------------------------------------
- ----
33
Notes to Financial Statements (continued)
Stock and Bond
----------------------------------------------
Year Ended Year Ended
6/30/04 6/30/03
---------------------- ----------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Shares sold:
Class A 108,795 $ 2,623,428 92,214 $ 1,974,090
Class B 115,580 2,715,885 145,087 3,126,202
Class C 125,171 3,012,416 135,588 2,921,125
Class R 81,873 1,965,644 90,794 1,943,995
Shares issued to shareholders due to reinvestment
of distributions:
Class A 18,766 444,932 26,783 579,697
Class B 3,189 75,705 4,273 92,319
Class C 1,432 34,016 1,872 40,469
Class R 6,787 161,604 6,406 138,108
- -------------------------------------------------------------------------------------------------
461,593 11,033,630 503,017 10,816,005
- -------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (388,824) (9,268,466) (328,507) (7,099,492)
Class B (150,821) (3,596,652) (166,673) (3,566,168)
Class C (107,058) (2,553,308) (90,332) (1,947,079)
Class R (27,667) (664,749) (13,762) (298,887)
- -------------------------------------------------------------------------------------------------
(674,370) (16,083,175) (599,274) (12,911,626)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) (212,777) $ (5,049,545) (96,257) $ (2,095,621)
- -------------------------------------------------------------------------------------------------
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,
2004, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ------------------------------------------------------------------------------------------
Purchases:
Investment securities $98,107,318 $472,524,342 $41,356,334 $33,724,884
U.S. Government and agency obligations -- -- -- 4,244,174
Sales and maturities:
Investment securities 14,250,364 565,027,949 53,280,702 39,391,120
U.S. Government and agency obligations -- -- -- 4,036,192
- ------------------------------------------------------------------------------------------
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 taxable debt securities, and
timing differences in recognizing certain gains and losses on security
transactions.
At June 30, 2004, the cost of investments were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ---------------------------------------------------------------------
Cost of investments $127,395,931 $453,392,715 $80,983,748 $55,953,872
- ---------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2004, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ----------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $19,861,947 $104,940,265 $ 9,610,143 $8,092,426
Depreciation (711,330) (4,402,858) (1,788,683) (387,292)
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $19,150,617 $100,537,407 $ 7,821,460 $7,705,134
- ----------------------------------------------------------------------------------------------
- ----
34
The tax components of undistributed net investment income and net realized
gains at June 30, 2004, were as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
- ----------------------------------------------------------------------------------
Undistributed net tax-exempt income $ -- $ -- $209,966 $ --
Undistributed net ordinary income* 778,567 1,528,960 233,268 332,926
Undistributed net long-term capital gains 432,721 -- -- --
- ----------------------------------------------------------------------------------
* 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 distributions paid during the fiscal years ended June 30,
2004 and June 30, 2003, was designated for purposes of the dividends paid
deduction as follows:
Multi-Cap Large-Cap Municipal Stock and
2004 Value Value and Stock Bond
- -----------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ -- $ -- $1,391,794 $ --
Distributions from net ordinary income* 841,834 1,874,507 359,212 1,089,809
Distributions from net long-term capital gains 985,618 -- -- --
p12
- -----------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------
* Net ordinary income consists of taxable income derived from dividends,
interest, market discount accretion and net short-term capital gains, if any.
** For the period April 1, 2003 through June 30, 2003.
The tax character of Multi-Cap Value's distributions paid during the fiscal
year ended March 31, 2003, was designated for purposes of the dividends paid
deduction as follows:
Multi-Cap
Value
--------------------------------------------------------
Distributions from net ordinary income*** $210,896
Distributions from net long-term capital gains --
--------------------------------------------------------
***Net ordinary income includes net short-term capital gains, if any.
At June 30, 2004, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
Large-Cap Municipal Stock and
Value and Stock Bond
---------------------------------------------------
Expiration year:
2010 $ -- $ 368,520 $ --
2011 55,798,510 10,907,448 1,922,472
2012 -- 882,767 --
---------------------------------------------------
Total $55,798,510 $12,158,735 $1,922,472
---------------------------------------------------
- ----
35
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., 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 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"), of which Nuveen Investments, Inc. owns a controlling interest while
key management of NWQ owns a non-controlling minority interest, and
Institutional Capital Corporation ("ICAP"), of 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, Stock and
Bond, and the equity portion of Municipal and Stock's investment portfolio. NWQ
and ICAP are compensated for their services to the Funds from the management
fee paid to the Adviser.
As approved by the Board of Trustees, a complex-wide fee schedule for all Funds
managed by the Adviser and its affiliates went into effect on August 1, 2004.
The implementation of this complex-wide fee schedule is expected to result in a
marginal immediate decrease in the rates (approximately .004%) at which
management fees are to be paid by the Funds. As assets in the Nuveen Fund
complex grow, the management fee rates to be paid by the Funds will decrease
further. Under no circumstances will the complex-wide fee schedule result in an
increase in the rates at which management fees would be paid by the Funds if
the complex-wide fee schedule were not implemented.
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, 2005, in order to limit total operating expenses (excluding
12b-1 distribution and 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 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 or its
affiliates. The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from certain
Nuveen advised Funds. Under the plan, deferred amounts are treated as though
equal dollar amounts had been invested in shares of select Nuveen advised Funds.
During the fiscal year ended June 30, 2004, Nuveen Investments, LLC (the
"Distributor"), 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) $421,306 $115,986 $104,747 $42,408
Paid to authorized dealers (unaudited) 368,751 101,485 93,252 37,092
------------------------------------------------------------------------------
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, 2004, 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) $474,334 $67,257 $38,982 $32,810
-----------------------------------------------------------------------
- ----
36
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, 2004, 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) $126,363 $466,307 $195,837 $114,339
-----------------------------------------------------------------------
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, 2004, as follows:
Multi-Cap Large-Cap Municipal Stock and
Value Value and Stock Bond
-----------------------------------------------------------------
CDSC retained (unaudited) $13,853 $107,145 $61,091 $35,819
-----------------------------------------------------------------
6. Investment Composition
At June 30, 2004, 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% 17% 8% 10%
Consumer Staples 5 4 3 3
Education and Civic Organizations -- -- 8 --
Energy 11 11 5 7
Financials 34 29 13 17
Healthcare 5 9 10 6
Housing/Multifamily -- -- 3 --
Housing/Single Family -- -- 1 --
Industrials 9 12 5 7
Information Technology 13 7 3 4
Long-Term Care -- -- 4 --
Materials 7 1 1 1
Tax Obligation/General -- -- 4 --
Tax Obligation/Limited -- -- 11 --
Telecommunication Services 1 3 1 2
Transportation -- -- 7 --
U.S. Guaranteed 10 1 6 39
Utilities 1 6 7 4
----------------------------------------------------------------------------
100% 100% 100% 100%
----------------------------------------------------------------------------
33% 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 2, 2004, to shareholders of record
on July 9, 2004, as follows:
Municipal
and Stock
-----------------------------
Dividend per share:
Class A $.0340
Class B .0210
Class C .0210
Class R .0375
- --------------------------------------------------------------------------------
- ----
37
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)
Year Ended 6/30/04 $14.60 $ .04 $ 4.38 $ 4.42 $(.02) $ (.44) $ (.46) $18.56 30.75%
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)
Year Ended 6/30/04 14.61 (.09) 4.37 4.28 -- (.44) (.44) 18.45 29.76
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)
Year Ended 6/30/04 14.62 (.09) 4.36 4.27 -- (.44) (.44) 18.45 29.67
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)
Year Ended 6/30/04 14.57 .06 4.38 4.44 (.05) (.44) (.49) 18.52 31.02
4/01/03- 6/30/03 11.51 .02 3.04 3.06 -- -- -- 14.57 26.59
Year Ended 3/31:
2003(e) 13.92 .08 (2.38) (2.30) (.11) -- (.11) 11.51 (16.52)
11/01/01- 3/31/02(f) 11.73 .05 2.20 2.25 (.06) -- (.06) 13.92 19.20
Year Ended 10/31:
2001(g) 13.28 .08 .09 .17 (.06) (1.66) (1.72) 11.73 1.23
2000(g) 11.84 .07 1.55 1.62 (.07) (.11) (.18) 13.28 13.80
1999(g) 10.01 .03 1.88 1.91 (.03) (.05) (.08) 11.84 19.33
- --------------------------------------------------------------------------------------------------------------------------
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)
Year Ended 6/30/04 $58,279 1.48% .20% 1.48% .20% 1.48% .20% 21%
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)
Year Ended 6/30/04 9,322 2.23 (.53) 2.23 (.53) 2.23 (.53) 21
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)
Year Ended 6/30/04 30,085 2.23 (.53) 2.23 (.53) 2.23 (.53) 21
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)
Year Ended 6/30/04 46,546 1.24 .39 1.24 .39 1.24 .39 21
4/01/03- 6/30/03 26,777 1.41* .56* 1.41* .56* 1.41* .56* 13
Year Ended 3/31:
2003(e) 21,795 1.61 .37 1.36 .62 1.36 .62 52
11/01/01- 3/31/02(f) 25,505 2.21* (.10)* 1.25* .86* 1.25* .86* 14
Year Ended 10/31:
2001(g) 16,996 1.54 .25 1.25 .54 1.25 .54 66
2000(g) 29,547 1.66 .09 1.15 .60 1.15 .60 49
1999(g) 16,406 1.70 (.22) 1.22 .26 1.22 .26 26
- -------------------------------------------------------------------------------------------------------------------
* Annualized.
(a)Per share Net Investment Income (Loss) 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.
(e)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.
(f)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.
(g)Information represents the performance history of the NWQ Special Equity
Portfolio (a series of the UAM Funds, Inc.).
See accompanying notes to financial statements.
- ----
38
Selected data for a share outstanding throughout each year:
Class (Inception Date)
Investment Operations Less Distributions
----------------------------- ------------------------ --------
LARGE-CAP VALUE
Net
Realized/
Net Unrealized
Beginning Invest- Invest- Net Ending Ending
Net ment ment Invest- Net Net
Asset Income Gain ment Capital Asset Total Assets
Year Ended June 30, Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) (000)
- -----------------------------------------------------------------------------------------------------------------------------
Class A (8/96)
2004 $19.93 $ .12 $ 3.44 $ 3.56 $(.08) $ -- $ (.08) $23.41 17.90% $434,121
2003 21.35 .08 (1.43) (1.35) (.07) -- (.07) 19.93 (6.28) 445,050
2002 24.40 .08 (3.06) (2.98) (.07) -- (.07) 21.35 (12.23) 577,946
2001 24.35 .16 2.49 2.65 (.21) (2.39) (2.60) 24.40 11.02 672,917
2000 27.07 .22 (1.62) (1.40) (.25) (1.07) (1.32) 24.35 (5.33) 669,651
Class B (8/96)
2004 19.62 (.04) 3.37 3.33 -- -- -- 22.95 16.97 56,486
2003 21.08 (.06) (1.40) (1.46) -- -- -- 19.62 (6.93) 55,129
2002 24.19 (.10) (3.01) (3.11) -- -- -- 21.08 (12.86) 73,011
2001 24.17 (.03) 2.46 2.43 (.02) (2.39) (2.41) 24.19 10.23 91,117
2000 26.87 .03 (1.60) (1.57) (.06) (1.07) (1.13) 24.17 (5.97) 93,275
Class C (8/96)
2004 19.58 (.04) 3.38 3.34 -- -- -- 22.92 17.06 43,607
2003 21.04 (.06) (1.40) (1.46) -- -- -- 19.58 (6.94) 42,105
2002 24.16 (.10) (3.02) (3.12) -- -- -- 21.04 (12.91) 53,729
2001 24.13 (.03) 2.47 2.44 (.02) (2.39) (2.41) 24.16 10.24 63,835
2000 26.84 .03 (1.61) (1.58) (.06) (1.07) (1.13) 24.13 (5.97) 55,303
Class R (8/96)
2004 19.99 .18 3.45 3.63 (.13) -- (.13) 23.49 18.20 20,533
2003 21.41 .13 (1.43) (1.30) (.12) -- (.12) 19.99 (5.99) 16,828
2002 24.46 .13 (3.05) (2.92) (.13) -- (.13) 21.41 (11.98) 17,585
2001 24.41 .22 2.49 2.71 (.27) (2.39) (2.66) 24.46 11.24 19,188
2000 27.14 .28 (1.62) (1.34) (.32) (1.07) (1.39) 24.41 (5.13) 17,604
- -----------------------------------------------------------------------------------------------------------------------------
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
to (Loss) to to (Loss) to to (Loss) to
Average Average Average Average Average Average Portfolio
Net Net Net Net Net Net Turnover
Year Ended June 30, Assets Assets Assets Assets Assets Assets Rate
- --------------------------------------------------------------------------------------------------------
Class A (8/96)
2004 1.36% .56% 1.36% .56% 1.36% .56% 85%
2003 1.45 .45 1.45 .45 1.45 .45 90
2002 1.36 .33 1.36 .33 1.36 .33 81
2001 1.34 .62 1.33 .63 1.32 .64 90
2000 1.34 .82 1.30 .85 1.30 .86 155
Class B (8/96)
2004 2.11 (.18) 2.11 (.18) 2.11 (.18) 85
2003 2.21 (.31) 2.21 (.31) 2.21 (.31) 90
2002 2.11 (.42) 2.11 (.42) 2.11 (.42) 81
2001 2.09 (.13) 2.08 (.11) 2.07 (.11) 90
2000 2.09 .08 2.06 .11 2.05 .12 155
Class C (8/96)
2004 2.11 (.18) 2.11 (.18) 2.11 (.18) 85
2003 2.21 (.31) 2.21 (.31) 2.21 (.31) 90
2002 2.11 (.42) 2.11 (.42) 2.11 (.42) 81
2001 2.09 (.14) 2.07 (.13) 2.07 (.12) 90
2000 2.11 .06 2.07 .09 2.05 .10 155
Class R (8/96)
2004 1.11 .83 1.11 .83 1.11 .83 85
2003 1.20 .70 1.20 .70 1.20 .70 90
2002 1.11 .58 1.11 .58 1.11 .58 81
2001 1.09 .86 1.08 .88 1.07 .88 90
2000 1.10 1.06 1.06 1.09 1.05 1.10 155
- --------------------------------------------------------------------------------------------------------
(a) Per share Net Investment Income (Loss) 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
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)
2004 $20.79 $.54 $ 1.14 $ 1.68 $(.51) $ -- $ (.51) $21.96 8.13%
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)
Class B (8/96)
2004 21.63 .40 1.19 1.59 (.23) -- (.23) 22.99 7.36
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)
Class C (8/96)
2004 21.61 .40 1.18 1.58 (.23) -- (.23) 22.96 7.32
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)
Class R (8/96)
2004 20.46 .59 1.12 1.71 (.60) -- (.60) 21.57 8.48
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)
- ---------------------------------------------------------------------------------------------------------------------
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)
2004 $56,787 1.28% 2.47% 1.25% 2.51% 1.25% 2.51% 45%
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
Class B (8/96)
2004 23,110 2.03 1.72 2.00 1.76 2.00 1.76 45
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
Class C (8/96)
2004 8,229 2.03 1.72 2.00 1.75 2.00 1.76 45
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
Class R (8/96)
2004 716 1.03 2.72 1.00 2.75 1.00 2.76 45
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
- ------------------------------------------------------------------------------------------------------------
(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.
- ----
40
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)
2004 $22.72 $.41 $ 1.92 $ 2.33 $(.49) $ -- $ (.49) $24.56 10.29%
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)
Class B (8/96)
2004 22.72 .23 1.92 2.15 (.31) -- (.31) 24.56 9.48
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)
Class C (8/96)
2004 22.73 .23 1.93 2.16 (.31) -- (.31) 24.58 9.52
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)
Class R (8/96)
2004 22.72 .47 1.92 2.39 (.55) -- (.55) 24.56 10.56
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)
- ------------------------------------------------------------------------------------------------------------------------
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)
2004 $33,312 1.36% 1.61% 1.25% 1.72% 1.25% 1.72% 61%
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
Class B (8/96)
2004 12,459 2.11 .86 2.00 .97 2.00 .97 61
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
Class C (8/96)
2004 8,632 2.11 .87 2.00 .98 2.00 .98 61
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
Class R (8/96)
2004 9,117 1.11 1.87 1.00 1.98 1.00 1.98 61
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
- --------------------------------------------------------------------------------------------------------------
(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.
- ----
41
Report of Independent Registered Public Accounting Firm
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,
2004, the results of each of their operations for the year then ended, the
changes in each of their net assets for the periods then ended and the
financial highlights for the Nuveen NWQ Multi-Cap Value Fund for the periods
then ended and the financial highlights for Nuveen Large-Cap Value Fund, Nuveen
Balanced Municipal and Stock Fund and Nuveen Balanced Stock and Bond Fund for
the three 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 the standards of the
Public Company Accounting Oversight Board, 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, 2004 by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion. The financial highlights of the
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 in their report
dated August 20, 2001.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
August 13, 2004
- ----
42
Notes
- --------------------------------------------------------------------------------
43
Notes
- --------------------------------------------------------------------------------
44
Notes
- --------------------------------------------------------------------------------
45
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
seven. 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 Funds 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 145
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:
- --------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 145
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- --------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (1989) as Senior Vice President of 145
7/29/34 The Northern Trust Company; Director,
333 W. Wacker Drive Community Advisory Board for Highland Park
Chicago, IL 60606 and Highwood, United Way of the North Shore
(since 2002).
- --------------------------------------------------------------------------------------------------------------------
Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 145
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire & Casualty Company; formerly Director,
Federal Reserve Bank of Chicago; formerly,
President and Chief Operating Officer, SCI
Financial Group, Inc., a regional financial
services firm.
- --------------------------------------------------------------------------------------------------------------------
William C. Hunter Trustee 2004 Dean and Distinguished Professor of Finance, 145
3/16/48 School of Business at the University of
333 W. Wacker Drive Connecticut (since 2003); previously Senior
Chicago, IL 60606 Vice President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director, Credit Research
Center at Georgetown University; Director of
Xerox Corporation (since 2004).
- --------------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Senior Partner and Chief Operating Officer, 145
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a construction
Chicago, IL 60606 company; Chair, Miami Valley Hospital;
Chair, Dayton 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 145
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).
- ----
46
Number of
Portfolios in
Name, Position(s) Year First Fund Complex
Birthdate Held with Elected or Principal Occupation(s) Overseen by
and Address the Funds Appointed(3) During Past 5 Years Trustee
- --------------------------------------------------------------------------------------------------------------
Officers of the Funds:
- --------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 145
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 2003); Chartered
Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 145
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 145
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); Vice
President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc. (since
2003); Chartered Financial Analyst.
- --------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant 145
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 Managing Director (since 2004) formerly, 145
10/24/45 Vice President of Nuveen Investments, LLC;
333 W. Wacker Drive Managing Director (since 2004) formerly,
Chicago, IL 60606 Vice President (since 1998) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.
- --------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen 145
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 145
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.
- ----
47
Trustees and Officers (continued)
================================================================================
Number of
Portfolios in
Name, Position(s) Year First Fund Complex
Birthdate Held with Elected or Principal Occupation(s) Overseen by
and Address the Funds Appointed(3) During Past 5 Years Trustee
- -----------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 145
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, 145
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 145
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 145
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.
- ----
48
- --------------------------------------------------------------------------------
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 Registered Nuveen Investor Services
Sub-Advisers Public Accounting Firm P.O. Box 8530
NWQ Investment Management PricewaterhouseCoopers LLP Boston, MA 02266-8530
Company, LLC Chicago, IL (800) 257-8787
2049 Century Park East
Los Angeles, CA 90067 Custodian
Institutional Capital Corporation State Street Bank & Trust
225 West Wacker Drive Boston, MA
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.
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.
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.
Unaudited Information: The Balanced Stock and Bond Fund designates 77% of
dividends declared from net investment income as dividends qualifying for the
70% dividends received deduction for corporations and 90% as qualified dividend
income for individuals under the Jobs and Growth Tax Relief Reconciliation Act
of 2003.
================================================================================
Proxy Voting Policies and Procedures: A description of the policies and
procedures that the Funds use to determine how to vote proxies relating to
portfolio securities is available (i) without charge, upon request, by calling
Nuveen Investments at (800) 257-8787; and (ii) on the Commission's website at
http://www.sec.gov.
================================================================================
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.
- ----
49
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.
Managing $102 billion in assets, Nuveen
Investments provides high-quality investment
services that contribute to the building of
well diversified investment portfolios. The
Company serves institutional clients,
financial advisors and high-net-worth
investors. The firm's asset management
capabilities are marketed through four
distinct brands, each with an independent
investment team and area of expertise;
Nuveen, focused on fixed-income investments;
NWQ, specializing in value-style equities;
Rittenhouse, dedicated to conservative
growth-style equities; and Symphony, with
expertise in alternative investment
portfolios.
To learn more about the products and services
Nuveen Investments offers, talk to your
financial advisor, or call us at (800)
257-8787.
Distributed by
Nuveen Investments, LLC 333 West Wacker Drive Chicago, Illinois 60606 www.nuveen.com
MAN-GRINC-0604D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors determined that the registrant had at least
one "audit committee financial expert" (as defined in Item 3 of Form N-CSR)
serving on its Audit Committee. The registrant's audit committee financial
expert was William E. Bennett, who was "independent" for purposes of Item 3 of
Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert for the
majority of the reporting period, he unexpectedly resigned from the Board
effective April 30, 2004. Since that time, the Audit Committee determined that
Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit
committee financial expert and recommended to the full Board that he be
designated as such. On July 26, 2004, the full Board voted to so designate
Mr. Evans. Accordingly, for this reporting period, the registrant did not have a
designated "audit committee financial expert" from April 30, 2004 to the end of
the reporting period on June 30, 2004.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolio; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that PricewaterhouseCoopers LLP,
the Trust's auditor, billed to the Trust during the Trust's last two full fiscal
years. For engagements with PricewaterhouseCoopers LLP entered into on or after
May 6, 2003, the Audit Committee approved in advance all audit services and
non-audit services that PricewaterhouseCoopers LLP provided to the Trust, except
for those non-audit services that were subject to the pre-approval exception
under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Trust waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Trust during the
fiscal year in which the services are provided; (B) the Trust did not recognize
the services as non-audit services at the time of the engagement; and (C) the
services are promptly brought to the Audit Committee's attention, and the
Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE TRUST
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
June 30, 2004 to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock $ 8,067 $ 0 $ 116 $ 0
Balanced Stock and Bond 7,339 0 80 0
Large-Cap Value 20,220 0 712 0
NWQ Multi-Cap Value 7,990 0 70 0
------------------------------------------------------------------------------
Total $ 43,616 $ 0 $ 978 $ 0
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------------------
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock 0% 0% 0% 0%
Balanced Stock and Bond 0 0 0 0
Large-Cap Value 0 0 0 0
NWQ Multi-Cap Value 0 0 0 0
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
June 30, 2003 to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock $ 7,722 $ 0 $ 658 $ 0
Balanced Stock and Bond 6,835 0 658 0
Large-Cap Value 17,812 0 658 0
NWQ Multi-Cap Value 3,450 0 0 2,360
------------------------------------------------------------------------------
Total $ 35,819 $ 0 $ 1,974 $ 2,360
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------------------
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock N/A N/A N/A N/A
Balanced Stock and Bond N/A N/A N/A N/A
Large-Cap Value N/A N/A N/A N/A
NWQ Multi-Cap Value N/A N/A N/A N/A
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
March 31, 2003* to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
NWQ Multi-Cap Value $ 5,862 $ 0 $ 658 $ 0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------------------
Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees
to Funds Billed to Funds Billed to Funds Billed to Funds
- ------------------------------------------------------------------------------------------------------------
NWQ Multi-Cap Value N/A N/A N/A N/A
*Nuveen NWQ Multi-Cap Value Fund changed its fiscal year end from March 31 to
June 30, therefore, these numbers represent the period 12/9/2002 - 3/31/2003.
SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers
LLP to Nuveen Institutional Advisory Corp. ("NIAC" or the "Adviser"), and any
entity controlling, controlled by or under common control with NIAC ("Control
Affiliate") that provides ongoing services to the Trust ("Affiliated Fund
Service Provider"), for engagements directly related to the Trust's operations
and financial reporting, during the Trust's last two full fiscal years.
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund
June 30, 2004 Service Providers Service Providers Service Providers
- ------------------------------------------------------------------------------------------------
Nuveen Investment Trust $0 $0 $0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
------------------------------------------------------------------
0% 0% 0%
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund
June 30, 2003 Service Providers Service Providers Service Providers
- ------------------------------------------------------------------------------------------------
Nuveen Investment Trust $0 $0 $0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
------------------------------------------------------------------
0% 0% 0%
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund
March 31, 2003* Service Providers Service Providers Service Providers
- ------------------------------------------------------------------------------------------------
NWQ Multi-Cap Value only $ 0 $ 0 $ 0
Percentage Approved Pursuant to Pre-approval Exception
------------------------------------------------------------------
Audit-Related Fees Tax Fees Billed to All Other Fees
Billed to Adviser and Adviser and Billed to Adviser
Affiliated Fund Affiliated Fund and Affiliated Fund
Service Providers Service Providers Service Providers
------------------------------------------------------------------
0% 0% 0%
*Nuveen NWQ Multi-Cap Value Fund changed its fiscal year end from March 31 to
June 30.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to PricewaterhouseCoopers LLP by the Trust, the Adviser and
Affiliated Fund Service Providers during the fiscal year in which the services
are provided that would have to be pre-approved by the Audit Committee; (B) the
Trust did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
Trust's audit is completed.
NON-AUDIT SERVICES
The following tables show the amount of fees that PricewaterhouseCoopers LLP
billed during the Trust's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that PricewaterhouseCoopers LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement relates directly to the Trust's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from PricewaterhouseCoopers
LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during
the Trust's last fiscal year to the Adviser and any Affiliated Fund Service
Provider. The Committee considered this information in evaluating
PricewaterhouseCoopers LLP's independence.
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other
June 30, 2004 Billed to Trust reporting of the Trust) engagements) Total
- ----------------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock $ 116 $ 0 $ 0 $ 116
Balanced Stock and Bond 80 0 0 80
Large-Cap Value 712 0 0 712
NWQ Multi-Cap Value 71 0 0 71
----------------------------------------------------------------------------------------
Total $ 978 $ 0 $ 0 $ 978
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other
June 30, 2003 Billed to Trust reporting of the Trust) engagements) Total
- ----------------------------------------------------------------------------------------------------------------------
Name of Series
- --------------
Balanced Municipal and Stock $ 658 $ 0 $ 0 $ 658
Balanced Stock and Bond 658 0 0 658
Large-Cap Value 658 0 0 658
NWQ Multi-Cap Value 2,360 0 0 2,360
----------------------------------------------------------------------------------------
Total $ 4,334 $ 0 $ 0 $ 4,334
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund Service Total Non-Audit Fees
Providers (engagements billed to Adviser and
related directly to the Affiliated Fund Service
Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other
March 31, 2003* Billed to Trust reporting of the Trust) engagements) Total
- ----------------------------------------------------------------------------------------------------------------------
NWQ Multi-Cap Value $ - $ 0 $ 0 $ 0
*Nuveen NWQ Multi-Cap Value Fund changed its fiscal year end from March 31 to
June 30, therefore, these numbers represent the period 12/9/2002 - 3/31/2003.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Trust
by the Trust's independent accountants and (ii) all audit and non-audit services
to be performed by the Trust's independent accountants for the Affiliated Fund
Service Providers with respect to the operations and financial reporting of the
Trust. Regarding tax and research projects conducted by the independent
accountants for the Trust and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Trust) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee Chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable to this registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing date of
this report that includes the disclosure required by this paragraph, based on
their evaluation of the controls and procedures required by Rule 30a-3(b) under
the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))
that occurred during the 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 11. EXHIBITS
File the exhibits listed below as part of this Form.
(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
because posted on registrant's website at www.nuveen.com/mf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: EX-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
to this registrant.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registration specifically incorporates it by
reference. EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Investment Trust
--------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
-------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date September 8, 2004
----------------------------------------------------------------
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 8, 2004
----------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date September 8, 2004
----------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.