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 811-21979
Nuveen Investment Trust V
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Mark J. Czarniecki
Vice President and Secretary
333 West Wacker Drive,
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: September 30
Date of reporting period: September 30, 2020
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. |
Mutual Funds
30 September
2020
Nuveen Gresham Managed Futures Fund
Fund Name | Class A | Class C | Class R6 | Class I | ||||
Nuveen Gresham Managed Futures Strategy Fund | NGAFX | NGCFX | NGFFX | NGIFX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting the financial intermediary (such as a broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment
companies.
Annual Report
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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3
Chair’s Letter to Shareholders
Dear Shareholders,
The COVID-19 crisis is taking an unprecedented toll on our health, societies, economies and financial markets. Our thoughts are with you during this time of significant disruption caused by the disease and its economic fallout.
A renewed increase in COVID-19 cases in multiple areas, including an outbreak affecting President Trump and White House staffers and contacts, showed that controlling the spread of the novel coronavirus remains an ongoing public health concern as economies reopen and social activities resume. In the meantime, medical knowledge is improving and some areas have been able to implement much narrower restrictions when infection clusters have recurred. This, along with government stimulus, has helped an economic recovery gain traction, with a significant recovery in jobs, consumer spending, manufacturing and other indicators from their weakest levels. Additionally, progress toward a vaccine and treatments has been promising, while the timeline is unknown. Markets have recently taken an optimistic view, but the course of the virus and policy goals of the presumptive Biden administration – and their implications for the U.S. economic recovery – will continue to shape sentiment.
While we do not want to understate the dampening effect on the global economy, it is important to differentiate short-term interruptions from the longer-lasting implications to the economy. Prior to the COVID-19 crisis, some areas of the global economy were showing signs of improvement after trade tensions had weighed on economic activity for much of 2019. More recently, countries that have reopened have seen marked improvement in some near-term economic indicators.
Central banks and governments around the world have announced economic stimulus measures and pledged to continue doing what it takes to support their economies. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and introduced similar programs that helped revive the U.S. economy after the 2008 financial crisis. The U.S. Government has approved three relief packages, including a $2 trillion-dollar package directly supporting businesses and individuals. The Coronavirus Aid, Relief and Economic Security Act, called the CARES Act, has provided direct payments and expanded unemployment benefits to individuals, loans and grants to small businesses, loans and other money to large corporations and funding for hospitals, public health, education and state and local governments. Additional stimulus measures are expected after the election, even if control of Congress remains divided. In the European Union, the European Central Bank recently increased the size of its Pandemic Emergency Purchase Program, known as PEPP, to $1.6 trillion from $882 billion and extended its duration to June 2021.
In the meantime, patience and a long-term perspective are key for investors. When market fluctuations are the leading headlines day after day, it’s tempting to “do something.” However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial professional, who can review your time horizon, risk tolerance and investment goals. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence J. Toth
Chair of the Board
November 20, 2020
4
Comments
Nuveen Gresham Managed Futures Strategy Fund
The Fund is managed by Nuveen Fund Advisors, LLC. The Fund is sub-advised by Gresham Investment Management LLC, acting through its Term Structure Monetization division (Gresham). Jonathan S. Spencer, Xiong Lin, CFA, and Hiroshi Hamazaki from Gresham manage the Fund.
On September 23, 2020, it was announced that the Fund will be liquidated after the close of business on November 20, 2020 (subsequent to the close of the reporting period). Effective October 23, 2020, the Fund stopped accepting purchases from new investors. Existing shareholders were able to purchase Fund shares until November 6, 2020 and continue to reinvest dividends and capital gains distributions received from the Fund. The Fund reserves the right to modify the extent to which sales of shares are limited prior to the Fund’s liquidation. After the close of business on November 20, 2020, the Fund liquidated all remaining shareholder accounts and sent shareholders the proceeds of the liquidation.
Effective November 25, 2019, Michael P. Magers no longer serves as a portfolio manager for the Fund and Hiroshi Hamazaki was added as a portfolio manager.
Here the managers review general market conditions and trends, key strategies and the performance of the Fund for the twelve-month reporting period ended September 30, 2020.
What factors affected the U.S. economy and financial markets during the twelve-month reporting period ended September 30, 2020?
The U.S. economy rebounded more quickly than expected from the deep downturn caused by the coronavirus containment measures. As business and social activities were drastically restricted in March and April 2020 to slow the spread of COVID-19, U.S. gross domestic product (GDP) shrank 31.4% on an annualized basis in the second quarter of 2020 (following a 5% decline in the first quarter), according to the Bureau of Economic Analysis (BEA) “third” estimate. GDP measures the value of goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes. Government relief programs provided significant aid to individuals and businesses as the economy began reopening in May 2020, which helped the economy bounce back strongly over the summer months. GDP rose 33.1% in the third quarter of 2020, according to the BEA’s “advance” estimate. While the third quarter gain was historic, the economy remained below pre-pandemic growth levels. GDP growth was 2.4% in the fourth quarter of 2019 and 2.2% for 2019 overall.
Consumer spending, the largest driver of the economy, was well supported earlier in this reporting period by low unemployment, wage gains and tax cuts. However, the COVID-19 crisis containment measures drove a significant drop in consumer spending and a sharp rise in unemployment starting in March 2020. The Bureau of Labor Statistics said the unemployment rate rose to 7.9% in September 2020 from 3.5% in September 2019. As of September 2020, roughly half of the 22 million jobs lost in March and April 2020 have been recovered. The average hourly earnings rate appeared to soar, growing at an annualized rate of 4.7% in September 2020, despite the spike in unemployment. Earnings data was skewed by the concentration of job losses in lower-wage work, which effectively eliminated most of the low-wage data, resulting in an average of mostly higher numbers. The overall trend of inflation
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Fund disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
5
Portfolio Managers’ Comments (continued)
remained muted, as decreases in gasoline, apparel and transportation prices offset an increase in food prices. The Bureau of Labor Statistics said the Consumer Price Index (CPI) increased 1.4% over the twelve-month reporting period ended September 30, 2020 before seasonal adjustment.
Prior to the COVID-19 crisis recession, the U.S. Federal Reserve (the Fed) had reduced its benchmark interest rate to support the economy’s slowing growth. The Fed also stopped shrinking its bond portfolio sooner than scheduled and began buying short-term Treasury bills to help money markets operate smoothly and maintain short-term borrowing rates at low levels.
As the health and economic crisis deepened, the Fed enacted an array of emergency measures in March 2020 to stabilize the financial system and support the markets, including cutting its main interest rate to near zero, offering lending programs to aid small and large companies and allowing unlimited bond purchases, known as quantitative easing. There were no policy changes at the Fed’s April, June and July 2020 meetings, where Chairman Powell reiterated a commitment to keep rates near zero until the economy recovers and maintained a cautious outlook for the U.S. economy. Also at the July 2020 meeting, the Fed extended some of its pandemic funding facilities by another three months to December 2020. At the annual Jackson Hole Economic Symposium, held virtually in August 2020, the Fed announced a change in inflation policy to average inflation targeting. Under this regime, the Fed will tolerate the inflation rate temporarily overshooting the target rate to offset periods of below-target inflation, so that inflation averages a 2% rate over time. The Fed provided further clarification of the new inflation policy and left the benchmark interest rate unchanged at its September 2020 meeting.
Meanwhile, the U.S. government approved three aid packages. These included $2 trillion allocated across direct payments to Americans, an expansion of unemployment insurance, loans to large and small businesses, funding to hospitals and health agencies and support to state and local governments, as well as more than $100 billion in funding to health agencies and employers offering paid leave. As some of these programs began to expire, additional relief measures were under discussion in Congress, but a final deal had not been reached as of the end of this reporting period.
The COVID-19 crisis rapidly dwarfed all other market concerns starting in late February 2020. Equity and commodity markets sold-off and safe-haven assets rallied in March 2020 as China, other countries and then the United States initiated quarantines, restricted travel and shuttered factories and businesses. The potential economic shock was particularly difficult to assess, which amplified market volatility. An ill-timed oil price war between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC member Russia, which caused oil prices to plunge in March 2020, exacerbated the market sell-off.
Geopolitical uncertainty remained elevated with the U.S. presidential election, the Brexit transition period winding down and U.S.-China relations deteriorating. While markets remained concerned about the potential for a disputed outcome, the next round of fiscal stimulus was expected to follow the presidential election. In Europe, the EU and U.K. continued to negotiate, but had not yet reached, a final Brexit agreement after the U.K. formally exited at the end of January 2020 and triggered the one-year transition period (which ends on December 31, 2020). Although China and the U.S. signed a “phase one” trade deal in January 2020, tensions continued to flare over other trade and technology/security issues, Hong Kong’s sovereignty and the management of the COVID-19 crisis.
How did the Fund perform during the twelve-month reporting period ended September 30, 2020?
The table in the Fund Performance and Expense Ratios section of this report provides total return performance information for each share class of the Fund for the period ending September 30, 2020. The Fund’s Class A Share total return at net asset value (NAV) is compared with the performance of the ICE BofA 3-Month U.S. Treasury Bill Index (“T-Bill Index”) and its Lipper classification average. The Fund’s Class A Shares at net asset value (NAV) underperformed the T-Bill Index and outperformed its Lipper classification average for the twelve-month reporting period ended September 30, 2020.
6
What strategies were used to manage the Fund during the twelve-month reporting period ended September 30, 2020 and how did these strategies influence performance?
The Fund’s investment objective is to seek capital appreciation. The Fund employs a proprietary, quantitatively-driven, systematically-executed investment process that seeks to capitalize on the existence of price momentum (or “trend”) within the global equity, fixed income, currency and commodity markets. The Fund takes long and short positions within these markets based on the systematic analysis and identification of price trends by Gresham. The owner of a “long” position will benefit from an increase in the price of the asset, while the owner of a “short” position will benefit from a decrease in the price of the asset. Gresham generally expects that the Fund will have long and short positions in all four of these markets, but at any one time the Fund may have significantly greater exposure to one or more of the markets, and the Fund’s exposure may consist predominantly of long or short positions within a market.
The Fund’s investment strategy has two elements, 1) a portfolio of derivative instruments, including futures, forward contracts and swaps, to gain its market exposure and 2) a portfolio of cash and cash equivalent holdings, including but not limited to U.S. Treasury securities and money market funds, which serve as collateral for the Fund’s derivative positions. The Fund’s derivatives portfolio results in investment exposure that greatly exceeds the Fund’s net assets, and therefore creates the economic effect of leverage. As a result of the Fund’s strategy, the Fund may at times have highly leveraged exposure across and within one or more markets. The Fund’s investments are generally made without restriction as to market capitalization, country, currency or maturity. The Fund may have exposure to issuers located in the United States as well as foreign developed and emerging markets.
Gresham’s investment philosophy is based on the belief that markets exhibit momentum, trends and other inefficiencies over time. Trends in particular reflect the phenomenon of serial correlation, whereby past price movements may influence current price behavior. Although the persistence of this phenomenon, as well as price correlation and the intensity of a price trend, will fluctuate depending on the characteristics of a given market, these features typically re-occur across markets and sectors, thus creating attractive, repeatable investment opportunities. Gresham identifies investment opportunities across a broad set of markets utilizing computerized processes. As such, the decision to trade is quantitative and directional in nature and decisions are grounded in mathematical models based on market trends and other relationships. This process is bolstered by ongoing research, diversification, risk control and a drive for efficiency in execution.
As geopolitical risk moderated somewhat in the fourth quarter of 2019, with trade tensions subsiding on signs of a U.S.-China entente and the U.S. Federal Reserve cutting rates for the third time in 2019, risk appetite remained strong through year-end and early 2020. As U.S. stock markets surged toward all-time highs in February 2020, few would have expected that the discussion would soon become centered on a global pandemic, and not whether a recession was on the horizon, but whether the one that had just arrived would turn into a full-blown depression. By mid-March 2020, the dismantling in asset markets was widespread, as the price of equities and other macro risk factors were re-rated dramatically. Market conditions came under unprecedented levels of duress, as volatility climbed into uncharted territory, correlations spiked and liquidity dried up or was materially impaired. An oil-price war at the worst possible time, a perceived shortage of U.S. dollars and record declines in macroeconomic indicators all stoked the fire.
Still, assets partially bounced back in the waning days of March 2020, as the dynamics of an unprecedented shuttering of social and economic activity were met by equally unprecedented levels of central bank and government intervention in the form of record-breaking fiscal support programs and seemingly limitless quantitative easing.
Market sentiment thereafter continued to be dominated by perceptions of the COVID-19 crisis, its impact on macroeconomic aggregates such as employment and the policy reaction (or, notably, the lack thereof in the U.S. in the third quarter of 2020). The upward trends in asset prices that commenced in late March 2020 continued through August 2020, with investors perhaps buying into the “V-shaped recovery” narrative. While equity markets reflected growing optimism for a sharper-than-previously-anticipated rebound, traditional safe-haven assets also enjoyed a solid bid, with U.S. Treasuries and gold both delivering strong returns. This may be partly attributable to the tension between upside surprises in economic data and anecdotal reports of vaccine trials on the one hand; and fears of a re-emergence of the virus, potential solvency concerns and a tailing away of fiscal support programs on the other.
7
Portfolio Managers’ Comments (continued)
Governments and central banks around the globe continued to indicate, pledge and (to different extents) provide support for their respective economies over the third quarter of 2020. This led to varying effects by market and region: The U.S. dollar continued to weaken, propelling commodities broadly higher alongside equities and other risk assets, in continuation of the generally bullish trend in place since the depths of March 2020. Furthermore, Chinese economic growth and commodity demand, marked by a recovery in purchasing managers indexes over the past seven months as well as other supportive data flows, remained strong.
The path, however, was uncertain. After a summer of increasingly looser restrictions by local governments and increased activity by the public, COVID-19 caseloads in September 2020 began to rise more rapidly on both sides of the Atlantic, particularly in Europe, where fears of a second wave began to materialize. Markets also had to contend with heightened political uncertainty in the U.S., as the presidential election approached its final phase, and negotiations over additional stimulus seemed to grind toward a standstill rather than making any tangible progress.
The Fund’s performance was slightly negative during this tumultuous reporting period characterized by the turmoil in markets caused by the COVID-19 crisis. The Fund’s positive contributions from long rates and bonds positions, as well as short commodities positions, was offset by losses from equities and currency sectors.
Long positions in U.S. Treasuries of various maturities and 30-day federal funds futures comprised the bulk of the positive contributions during the reporting period, as yields plummeted in early March 2020, with the 10-year Treasury yield subsequently hovering at around 0.5% as of early August 2020. The long position in 90-day eurodollar futures also contributed significantly to performance in the first quarter of 2020. The short Brazilian real position was another of the largest individual contributors, as the Brazilian real continued to make new record lows through mid-May 2020 and its weakness continued throughout the summer. Short gas/oil positions contributed especially well in the first quarter of 2020, as prices fell sharply amid the demand destruction caused by the pandemic hitting the energy sector especially hard.
The Fund’s losing positions were mostly concentrated in the currency and equity markets, such as the Fund’s short position in Japanese yen, as the yen rallied on strong safe-haven demand, while a long position in Mexican peso took away from performance, also on COVID-19 crisis concerns. The Fund’s long positions in the Dow Jones Industrial Average and the Russell 2000® Index were the largest detractors in equities, with a short position in Chicago Board Options Exchange (Cboe) Volatility Index® (the VIX®) futures also detracting from performance on the sudden and violent downward move in U.S. equities that occurred from February to mid-March 2020. Long positions in French 10-year bonds also negatively impacted returns as yields rose on expectations of government stimulus needed to combat the pending economic effects of the COVID-19 crisis.
8
Nuveen Gresham Managed Futures Strategy Fund
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objective will be achieved. The Fund employs proprietary trading models developed by Gresham that rely on historical pricing data provided by third-parties which introduces model and data risk. The Fund’s investment decisions are determined by the models; Gresham’s investment professionals do not exercise trade-by-trade discretion over the Fund’s investments. The Fund bears the risk that Gresham’s models will not be successful in identifying trends or in determining the size and direction of investment positions that will enable the Fund to achieve its investment objective. Models and data are subject to errors, omissions, imperfections and malfunctions which may materially negatively impact the Fund and/or its returns. The Fund may take short positions in derivative instruments, which is a speculative technique. The Fund will suffer a loss when the price of a security that it holds long decreases or the price of a security that it has holds short increases. Losses on short positions arise from increases in the value of the underlying instrument, and therefore are theoretically unlimited. More information on these risks, as well as information on other risks to which the Fund is subject, such as commodities, counterparty, credit, currency, derivatives, equity security, frequent trading, leverage, non-diversification, non-U.S. investment, subsidiary, tax, and volatility risks, are included in the Fund’s prospectus.
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and Expense Ratios
The Fund Performance and Expense Ratios for the Fund are shown within this section of the report.
Fund Performance
Returns quoted represent past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown.
Total returns for a period of less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Returns may reflect fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at NAV only.
Expense Ratios
The expense ratios shown are as of the Fund’s most recent prospectus. The expense ratios shown reflect the total operating expenses (before fee waivers and/or expense reimbursements, if any). The expense ratios include management fees and other fees and expenses.
11
Fund Performance and Expense Ratios (continued)
Nuveen Gresham Managed Futures Strategy Fund
Refer to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance and Expense Ratios
Total Returns as of September 30, 2020* | ||||||||||||||||||||
Average Annual | Expense Ratios** | |||||||||||||||||||
Inception Date | 1-Year | Since Inception | Gross | Net | ||||||||||||||||
Class A Shares at NAV | 10/01/18 | (1.36)% | 5.46% | 1.77% | 1.52% | |||||||||||||||
Class A Shares at maximum Offering Price | 10/01/18 | (7.04)% | 2.38% | — | — | |||||||||||||||
ICE BofA 3 Month U.S. Treasury Bill Index | — | 1.10% | 1.74% | — | — | |||||||||||||||
Lipper Alternative Managed Futures Funds Classification Average | — | (6.85)% | (2.12)% | — | — | |||||||||||||||
Class C Shares | 10/01/18 | (2.05)% | 4.69% | 2.51% | 2.27% | |||||||||||||||
Class R6 Shares | 10/01/18 | (1.06)% | 5.76% | 1.50% | 1.26% | |||||||||||||||
Class I Shares | 10/01/18 | (1.23)% | 5.67% | 1.51% | 1.27% |
* | Class A Shares have a maximum 5.75% sales charge (Offering Price). 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) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten years after purchase. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. |
** | The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2022, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 1.31% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual operating expenses for the Class R6 Shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to its expiration only with the approval of the Board of Trustees of the Fund. |
12
Growth of an Assumed $10,000 Investment as of September 30, 2020 – Class A Shares
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
13
Holding Summaries as of September 30, 2020
Nuveen Gresham Managed Futures Strategy Fund
This data relates to the securities held in the Fund’s consolidated portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Allocation1
(% of net assets)
Repurchase Agreements | 9.1% | |||
U.S. Government and Agency Obligations | ||||
U.S. Government and Agency Obligations | 81.2% | |||
Total U.S. Government and Agency Obligations | 81.2% | |||
Other Assets Less Liabilities | ||||
Deposits for futures margin requirements | 10.2% | |||
Other assets less liabilities (excluding deposits for futures margin requirements) | (0.5)% | |||
Total Other Assets Less Liabilities | 9.7% | |||
Net Assets | 100% |
Asset Class Risk Exposure | | % Risk Allocation2 | | |
Commodity | 33.7% | |||
Fixed Income | 28.8% | |||
Equity | 18.9% | |||
Currency | 18.6% |
Top Five Fixed Income Holdings | | % Risk Allocation² | | |
EUX French 10-Year Bond Euro-OAT Futures Contract | 4.8% | |||
EUX Long-Term Italian Bond Euro-BTP Futures Contract | 4.5% | |||
EUX Short-Term Italian Bond Euro-BTP Futures Contract | 3.2% | |||
EUX 30-Year Euro-BUXL Futures Contract | 2.4% | |||
ICE 3-Month Euro-Euribor Futures Contract | 1.6% |
Top Five Currency Holdings | | % Risk Allocation² | | |
CME Brazilian Real Currency Futures Contract | 3.4% | |||
CME Euro FX/British Pound Cross Rate Currency Futures Contract | 2.9% | |||
SGX Indian Rupee FX/US Dollar Cross Rate Currency Futures Contract | 2.8% | |||
CME Japanese Yen Currency Futures Contract | 1.7% | |||
CME Swiss Franc Currency Futures Contract | 1.6% |
Top Five Equity Holdings | | % Risk Allocation² | | |
CME E-mini NASDAQ 100 Index Futures Contract | 3.5% | |||
CME E-mini S&P 500 Index Futures Contract | 2.9% | |||
EUX STOXX Europe 600 Index Futures Contract | 2.3% | |||
SGX MSCI Taiwan Index Futures Contract | 1.6% | |||
SGX FTSE China A50 Index Futures Contract | 1.5% |
Top Five Commodity Holdings | | % Risk Allocation² | | |
ICE Low Sulphur Gas Oil Futures Contract | 3.6% | |||
ICE Brent Crude Oil Futures Contract | 2.5% | |||
EOP Mill Wheat Futures Contract | 2.2% | |||
CBOT Soybean Meal Futures Contract | 2.2% | |||
NYMEX Palladium Futures Contract | 2.2% |
1 | The Fund seeks to maintain commodity exposure in accordance with its investment guidelines by managing the accumulated notional value of the futures contracts to approximate the net assets of the Fund. Investments in futures contracts obligate the Fund to utilize a small percentage of its net assets to post as margin when obtaining the desired Fund exposure to the various commodity investments; any assets not used as margin will be invested in low-risk investments such as short-term U.S. government securities and other high-quality short-term debt securities with maturities not exceeding one year at the time of investment. |
2 | Risk Allocation is calculated by multiplying each position’s notional exposure by its realized volatility and dividing by the sum of the Fund’s volatility-adjusted exposure. These numbers will sum to 100% and do not account for the direction of the position or correlations between contracts. |
14
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended September 30, 2020.
The beginning of the period is April 1, 2020.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the following tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Gresham Managed Futures Strategy Fund
Share Class | ||||||||||||||||
A Shares | C Shares | R6 Shares | I Shares | |||||||||||||
Actual Performance | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 973.98 | $ | 970.30 | $ | 975.51 | $ | 974.48 | ||||||||
Expenses Incurred During the Period | $ | 7.37 | $ | 11.16 | $ | 5.99 | $ | 6.19 | ||||||||
Hypothetical Performance (5% annualized return before expenses) | ||||||||||||||||
Beginning Account Value | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value | $ | 1,017.60 | $ | 1,013.74 | $ | 1,019.00 | $ | 1,018.80 | ||||||||
Expenses Incurred During the Period | $ | 7.54 | $ | 11.41 | $ | 6.12 | $ | 6.33 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 1.49%, 2.26%, 1.21% and 1.25% for Classes A, C, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Nuveen Investment Trust V and Shareholders of
Nuveen Gresham Managed Futures Strategy Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated portfolio of investments, of Nuveen Gresham Managed Futures Strategy Fund and its subsidiary (one of the funds constituting Nuveen Investment Trust V, referred to hereafter as the “Fund”) as of September 30, 2020, the related consolidated statement of operations for the year ended September 30, 2020 and the consolidated statement of changes in net assets and the financial highlights for the year ended September 30, 2020 and for the period October 1, 2019 (commencement of operations) through September 30, 2019, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2020, the results of its operations for the year ended September 30, 2020, and the changes in its net assets and the financial highlights for the year ended September 30, 2020 and for the period October 1, 2019 (commencement of operations) through September 30, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of September 30, 2020 by correspondence with the custodian and broker. We believe that our audits provide a reasonable basis for our opinion.
Subsequent Event
As discussed in Note 9 to the consolidated financial statements, the Board of Trustees approved a plan of liquidation for the Fund on September 22, 2020.
PricewaterhouseCoopers LLP
Chicago, Illinois
November 25, 2020
We have served as the auditor of one or more investment companies in Nuveen Funds since 2002.
16
Nuveen Gresham Managed Futures Strategy Fund
Consolidated Portfolio of Investments September 30, 2020
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 90.3% | ||||||||||||||||||||
REPURCHASE AGREEMENTS – 9.1% | ||||||||||||||||||||
$ | 1,026 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/20, repurchase price $1,025,899, collateralized by $881,700 U.S. Treasury Notes, 2.875%, due 8/15/28, value $1,046,502 | 0.000% | 10/01/20 | N/A | $ | 1,025,899 | |||||||||||||
1,179 | Repurchase Agreement with State Street Bank, dated 9/30/20, repurchase price $1,178,580, collateralized by $1,180,000 U.S. Treasury Notes, 2.000%, due 8/31/21, value $1,202,190, (3) | 0.000% | 10/01/20 | N/A | 1,178,580 | |||||||||||||||
$ | 2,204 | Total Repurchase Agreements (cost $2,204,479) | 2,204,479 | |||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 81.2% | ||||||||||||||||||||
4,139 | U.S. Treasury Bills | 0.000% | 10/22/20 | F1+ | 4,138,789 | |||||||||||||||
494 | U.S. Treasury Bills | 0.000% | 1/14/21 | F1+ | 493,845 | |||||||||||||||
15,092 | U.S. Treasury Bills | 0.000% | 3/11/21 | F1+ | 15,084,997 | |||||||||||||||
$ | 19,725 | Total U.S. Government and Agency Obligations (cost $19,718,437) | 19,717,631 | |||||||||||||||||
Total Short-Term Investments (cost $21,922,916) | 21,922,110 | |||||||||||||||||||
Other Assets Less Liabilities – 9.7% (4) | 2,357,469 | |||||||||||||||||||
Net Assets – 100% | $ | 24,279,579 |
Investments in Derivatives
Futures Contracts
Fixed Income Group | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
ASX 3-Year Australian Bond Futures Contract | Long | 103 | December 2020 | $ | 8,634,192 | $ | 8,654,128 | $ | 19,936 | $ | (1,211) | |||||||||||||||||||
ASX 10-Year Australian Bond Futures Contract | Long | 10 | December 2020 | 1,064,203 | 1,070,026 | 5,823 | (869) | |||||||||||||||||||||||
CBOT 30-Day Fed Fund Futures Contract | Long | 74 | December 2020 | 30,807,487 | 30,812,673 | 5,186 | (1,549) | |||||||||||||||||||||||
CBOT U.S. Treasury 2-Year Note Futures Contract | Long | 79 | December 2020 | 17,448,335 | 17,455,914 | 7,579 | (617) | |||||||||||||||||||||||
CBOT U.S. Treasury 5-Year Note Futures Contract | Long | 20 | December 2020 | 2,520,418 | 2,520,625 | 207 | (2,031) | |||||||||||||||||||||||
CBOT U.S. Treasury 10-Year Note Futures Contract | Long | 27 | December 2020 | 3,756,897 | 3,767,344 | 10,447 | (6,750) | |||||||||||||||||||||||
CBOT U.S. Treasury Long Bond Futures Contract | Long | 2 | December 2020 | 352,565 | 352,563 | (2) | (939) | |||||||||||||||||||||||
CBOT U.S. Treasury Ultra 10-Year Bond Futures Contract | Long | 8 | December 2020 | 1,277,948 | 1,279,375 | 1,427 | (3,298) | |||||||||||||||||||||||
CBOT U.S. Treasury Ultra Bond Futures Contract | Long | 1 | December 2020 | 226,103 | 221,813 | (4,290) | (2,000) | |||||||||||||||||||||||
CME 90-Day Euro Futures Contract | Long | 103 | December 2020 | 25,644,034 | 25,686,913 | 42,879 | 1,285 | |||||||||||||||||||||||
EUX 10-Year Euro-BUND Futures Contract | Long | 7 | December 2020 | 1,426,356 | 1,432,312 | 5,956 | (2,873) | |||||||||||||||||||||||
EUX 2-Year Euro-Schatz Futures Contract | Long | 141 | December 2020 | 18,559,494 | 18,563,268 | 3,774 | (2,432) | |||||||||||||||||||||||
EUX 30-Year Euro-BUXL Futures Contract | Long | 5 | December 2020 | 1,281,773 | 1,305,406 | 23,633 | (6,683) |
17
Nuveen Gresham Managed Futures Strategy Fund (continued)
Consolidated Portfolio of Investments September 30, 2020
Investments in Derivatives (continued)
Futures Contracts (continued):
Fixed Income Group | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
EUX 5-Year Euro-BOBL Futures Contract | Long | 19 | December 2020 | $ | 3,007,357 | $ | 3,011,121 | $ | 3,764 | $ | (2,450) | |||||||||||||||||||
EUX French 10-Year Bond Euro-OAT Futures Contract | Long | 42 | December 2020 | 8,252,958 | 8,299,889 | 46,931 | (21,787) | |||||||||||||||||||||||
EUX Long-Term Italian Bond Euro-BTP Futures Contract | Long | 34 | December 2020 | 5,797,274 | 5,883,025 | 85,751 | (20,330) | |||||||||||||||||||||||
EUX Short-Term Italian Bond Euro-BTP Futures Contract | Long | 160 | December 2020 | 21,200,968 | 21,248,542 | 47,574 | (14,961) | |||||||||||||||||||||||
ICE 3-Month Euro-Euribor Futures Contract | Long | 350 | December 2020 | 103,063,881 | 103,107,432 | 43,551 | (98) | |||||||||||||||||||||||
ICE 3-Month Euro-Swiss Franc Futures Contract | Long | 138 | December 2020 | 37,740,556 | 37,749,416 | 8,860 | 3,690 | |||||||||||||||||||||||
ICE 90-Day Sterling Futures Contract | Long | 244 | December 2020 | 39,289,479 | 39,324,167 | 34,688 | (2) | |||||||||||||||||||||||
ICE Long Gilt Futures Contract | Long | 6 | December 2020 | 1,055,397 | 1,053,777 | (1,620) | (2,866) | |||||||||||||||||||||||
Montreal Exchange 10-Year Canadian Bond Futures Contract | Long | 10 | December 2020 | 1,140,890 | 1,140,100 | (790) | (3,380) | |||||||||||||||||||||||
Montreal Exchange S&P/TSX 60 Canadian Bond Futures Contract | Long | 1 | December 2020 | 144,959 | 144,418 | (541) | (946) | |||||||||||||||||||||||
OSE Japanese 10-Year Bond Futures Contract | Long | 3 | December 2020 | 4,328,075 | 4,326,838 | (1,237) | — | |||||||||||||||||||||||
Aggregate Long Fixed Income Futures Contracts | 1,587 | 338,021,599 | 338,411,085 | 389,486 | (93,097) | |||||||||||||||||||||||||
Aggregate Short Fixed Income Futures Contracts | — | — | — | — | — | |||||||||||||||||||||||||
Currency Group | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
CME Australian Dollar Currency Futures Contract | Long | 3 | December 2020 | $ | 217,949 | $ | 214,890 | $ | (3,059) | $ | 990 | |||||||||||||||||||
CME Brazilian Real Currency Futures Contract | Short | (65) | November 2020 | (1,158,657) | (1,155,700) | 2,957 | (3,982) | |||||||||||||||||||||||
CME Canadian Dollar Currency Futures Contract | Short | (2) | December 2020 | (149,571) | (150,260) | (689) | (810) | |||||||||||||||||||||||
CME Euro Currency Futures Contract | Long | 10 | December 2020 | 1,475,884 | 1,466,938 | (8,946) | (2,034) | |||||||||||||||||||||||
CME Euro FX/British Pound Cross Rate Currency Futures Contract | Long | 13 | December 2020 | 1,924,544 | 1,906,951 | (17,593) | (9,016) | |||||||||||||||||||||||
CME Euro FX/Japanese Yen Cross Rate Currency Futures Contract | Long | 8 | December 2020 | 1,190,415 | 1,172,806 | (17,609) | (4,172) | |||||||||||||||||||||||
CME Euro-Swiss Franc Futures Contract | Long | 11 | December 2020 | 1,613,056 | 1,610,648 | (2,408) | 448 | |||||||||||||||||||||||
CME Japanese Yen Currency Futures Contract | Long | 17 | December 2020 | 2,021,003 | 2,016,094 | (4,909) | 3,506 | |||||||||||||||||||||||
CME Mexican Peso Currency Futures Contract | Long | 18 | December 2020 | 420,018 | 403,650 | (16,368) | 5,760 | |||||||||||||||||||||||
CME New Zealand Dollar Currency Futures Contract | Long | 1 | December 2020 | 67,662 | 66,130 | (1,532) | 210 | |||||||||||||||||||||||
CME Swiss Franc Currency Futures Contract | Long | 11 | December 2020 | 1,504,741 | 1,495,588 | (9,153) | (3,025) | |||||||||||||||||||||||
ICE U.S. Dollar Index Futures Contract | Short | (9) | December 2020 | (834,614) | (845,343) | (10,729) | — | |||||||||||||||||||||||
SGX Indian Rupee FX/US Dollar Cross Rate Currency Futures Contract | Long | 108 | October 2020 | 2,928,480 | 2,922,480 | (6,000) | 3,218 | |||||||||||||||||||||||
Aggregate Long Currency Futures Contracts | 200 | 13,363,752 | 13,276,175 | (87,577) | (4,115) | |||||||||||||||||||||||||
Aggregate Short Currency Futures Contracts | (76) | (2,142,842) | (2,151,303) | (8,461) | (4,792) |
18
Investments in Derivatives (continued)
Futures Contracts (continued):
Equity Group | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
CBOE VIX Index Futures Contract | Long | 1 | October 2020 | $ | 37,102 | $ | 30,375 | $ | (6,727) | $ | 600 | |||||||||||||||||||
CBOT E-mini Dow Index Futures Contract | Long | 3 | December 2020 | 411,381 | 414,960 | 3,579 | 3,840 | |||||||||||||||||||||||
CME E-mini NASDAQ 100 Index Futures Contract | Long | 3 | December 2020 | 669,942 | 684,435 | 14,493 | 4,170 | |||||||||||||||||||||||
CME E-mini S&P 500 Index Futures Contract | Long | 5 | December 2020 | 832,533 | 838,000 | 5,467 | 4,575 | |||||||||||||||||||||||
CME Nikkei 225 Index Futures Contract | Long | 3 | December 2020 | 345,308 | 349,575 | 4,267 | (2,925) | |||||||||||||||||||||||
CME Nikkei Denom Index Futures Contract | Long | 1 | December 2020 | 108,786 | 110,297 | 1,511 | (877) | |||||||||||||||||||||||
EOP CAC40 Index Futures Contract | Short | (1) | October 2020 | (55,244) | (56,289) | (1,045) | 340 | |||||||||||||||||||||||
EUX STOXX Europe 600 Index Futures Contract | Short | (92) | December 2020 | (470,664) | (445,484) | 25,180 | (3,497) | |||||||||||||||||||||||
EUX Swiss Market New Index Futures Contract | Long | 4 | December 2020 | 453,368 | 442,278 | (11,090) | (695) | |||||||||||||||||||||||
ICE FTSE 100 Index Futures Contract | Short | (2) | December 2020 | (154,762) | (150,751) | 4,011 | 761 | |||||||||||||||||||||||
ICE FTSE 250 Index Futures Contract | Short | (2) | December 2020 | (88,444) | (88,908) | (464) | (511) | |||||||||||||||||||||||
ICE MSCI EAFE Index Futures Contract | Long | 1 | December 2020 | 95,632 | 92,660 | (2,972) | (525) | |||||||||||||||||||||||
ICE MSCI Emerging Markets Index Futures Contract | Long | 1 | December 2020 | 55,782 | 54,425 | (1,357) | 870 | |||||||||||||||||||||||
LSE OMXS30 Index Futures Contract | Long | 7 | October 2020 | 142,233 | 143,133 | 900 | (586) | |||||||||||||||||||||||
MDE Mexican Bolsa Index Futures Contract | Short | (12) | December 2020 | (198,674) | (203,313) | (4,639) | (1,639) | |||||||||||||||||||||||
OSE Japanese TOPIX Index Futures Contract | Long | 1 | December 2020 | 154,370 | 154,127 | (243) | (3,176) | |||||||||||||||||||||||
SAF FTSE/JSE Top 40 Index Futures Contract | Short | (1) | December 2020 | (29,426) | (30,079) | (653) | 156 | |||||||||||||||||||||||
SGX FTSE China A50 Index Futures Contract | Long | 36 | October 2020 | 546,174 | 544,320 | (1,854) | (1,890) | |||||||||||||||||||||||
SGX MSCI Singapore Index Futures Contract | Short | (11) | October 2020 | (227,756) | (227,809) | (53) | 544 | |||||||||||||||||||||||
SGX MSCI Taiwan Index Futures Contract | Long | 11 | October 2020 | 533,516 | 542,300 | 8,784 | 1,760 | |||||||||||||||||||||||
Aggregate Long Equity Futures Contracts | 77 | 4,386,127 | 4,400,885 | 14,758 | 5,141 | |||||||||||||||||||||||||
Aggregate Short Equity Futures Contracts | (121) | (1,224,970) | (1,202,633) | 22,337 | (3,846) | |||||||||||||||||||||||||
Commodity Group (5) | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
Energy | Crude Oil | |||||||||||||||||||||||||||||
NYMEX WTI Crude Oil Futures Contract | Short | (6) | November 2020 | $ | (226,510) | $ | (241,320) | $ | (14,810) | $ | (5,430) | |||||||||||||||||||
ICE Brent Crude Oil Futures Contract | Short | (11) | December 2020 | (466,840) | (465,300) | 1,540 | (8,140) | |||||||||||||||||||||||
Total Crude Oil | (17) | (693,350) | (706,620) | (13,270) | (13,570) | |||||||||||||||||||||||||
Gas Oil | ||||||||||||||||||||||||||||||
ICE Low Sulphur Gas Oil Futures Contract | Short | (18) | November 2020 | (611,475) | (600,750) | 10,725 | (6,750) | |||||||||||||||||||||||
Heating Oil | ||||||||||||||||||||||||||||||
NYMEX NY Harbor ULSD Futures Contract | Short | (4) | November 2020 | (189,428) | (193,570) | (4,142) | (6,132) | |||||||||||||||||||||||
Natural Gas | ||||||||||||||||||||||||||||||
NYMEX Natural Gas Futures Contract | Short | (9) | November 2020 | (236,140) | (227,430) | 8,710 | 2,510 | |||||||||||||||||||||||
Total Energy | (48) | (1,730,393) | (1,728,370) | 2,023 | (23,942) |
19
Nuveen Gresham Managed Futures Strategy Fund (continued)
Consolidated Portfolio of Investments September 30, 2020
Investments in Derivatives (continued)
Futures Contracts (continued):
Commodity Group (5) | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
Industrial Metals | Aluminum | |||||||||||||||||||||||||||||
LME Primary Aluminum Futures Contract | Long | 3 | October 2020 | $ | 132,334 | $ | 130,481 | $ | (1,853) | $ | (1,444) | |||||||||||||||||||
LME Primary Aluminum Futures Contract | Short | (1) | October 2020 | (42,888) | (43,494) | (606) | 480 | |||||||||||||||||||||||
Total Aluminum | 2 | 89,446 | 86,987 | (2,459) | (964) | |||||||||||||||||||||||||
Copper | ||||||||||||||||||||||||||||||
CEC Copper Futures Contract | Long | 3 | December 2020 | 221,263 | 227,438 | 6,175 | 3,188 | |||||||||||||||||||||||
LME Copper Futures Contract | Long | 1 | October 2020 | 165,625 | 166,900 | 1,275 | 2,376 | |||||||||||||||||||||||
Total Copper | 4 | 386,888 | 394,338 | 7,450 | 5,564 | |||||||||||||||||||||||||
Lead | ||||||||||||||||||||||||||||||
LME Lead Futures Contract | Long | 1 | October 2020 | 49,319 | 45,188 | (4,131) | (488) | |||||||||||||||||||||||
LME Lead Futures Contract | Short | (1) | October 2020 | (47,357) | (45,188) | 2,169 | 488 | |||||||||||||||||||||||
Total Lead | — | 1,962 | — | (1,962) | — | |||||||||||||||||||||||||
Nickel | ||||||||||||||||||||||||||||||
LME Nickel Futures Contract | Long | 6 | October 2020 | 546,390 | 521,532 | (24,858) | 2,304 | |||||||||||||||||||||||
LME Nickel Futures Contract | Short | (3) | October 2020 | (259,596) | (260,766) | (1,170) | (1,152) | |||||||||||||||||||||||
Total Nickel | 3 | 286,794 | 260,766 | (26,028) | 1,152 | |||||||||||||||||||||||||
Zinc | ||||||||||||||||||||||||||||||
LME Zinc Futures Contract | Long | 5 | October 2020 | 307,006 | 298,875 | (8,131) | (2,688) | |||||||||||||||||||||||
LME Zinc Futures Contract | Short | (3) | October 2020 | (180,324) | (179,325) | 999 | 1,613 | |||||||||||||||||||||||
Total Zinc | 2 | 126,682 | 119,550 | (7,132) | (1,075) | |||||||||||||||||||||||||
Total Industrial Metals | 11 | 891,772 | 861,641 | (30,131) | 4,677 | |||||||||||||||||||||||||
Agriculturals | Corn | |||||||||||||||||||||||||||||
CBOT Corn Futures Contract | Short | (3) | December 2020 | (50,863) | (56,850) | (5,987) | (2,138) | |||||||||||||||||||||||
Canola Oil | ||||||||||||||||||||||||||||||
ICE Canola Oil Futures Contract | Long | 70 | November 2020 | 522,635 | 547,152 | 24,517 | 8,853 | |||||||||||||||||||||||
Rapeseed | ||||||||||||||||||||||||||||||
EOP Rapeseed Futures Contract | Long | 33 | November 2020 | 749,972 | 744,799 | (5,173) | 8,222 | |||||||||||||||||||||||
Soybean Meal | ||||||||||||||||||||||||||||||
CBOT Soybean Meal Futures Contract | Long | 20 | December 2020 | 650,060 | 685,600 | 35,540 | 21,140 | |||||||||||||||||||||||
Soybean Oil | ||||||||||||||||||||||||||||||
CBOT Soybean Oil Futures Contract | Long | 8 | December 2020 | 162,888 | 159,024 | (3,864) | 2,112 | |||||||||||||||||||||||
Soybeans | ||||||||||||||||||||||||||||||
CBOT Soybean Futures Contract | Long | 4 | November 2020 | 195,938 | 204,700 | 8,762 | 5,900 | |||||||||||||||||||||||
Wheat | ||||||||||||||||||||||||||||||
CBOT KC HRW Wheat Futures Contract | Long | 2 | December 2020 | 48,675 | 50,975 | 2,300 | 3,375 |
20
Investments in Derivatives (continued)
Futures Contracts (continued):
Commodity Group (5) | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
Agriculturals (continued) | Wheat (continued) | |||||||||||||||||||||||||||||
CBOT Wheat Futures Contract | Long | 4 | December 2020 | $ | 110,900 | $ | 115,600 | $ | 4,700 | $ | 5,700 | |||||||||||||||||||
EOP Mill Wheat Futures Contract | Long | 83 | December 2020 | 911,668 | 962,186 | 50,518 | 26,644 | |||||||||||||||||||||||
Total Wheat | 89 | 1,071,243 | 1,128,761 | 57,518 | 35,719 | |||||||||||||||||||||||||
Total Agriculturals | 221 | 3,301,873 | 3,413,186 | 111,313 | 79,808 | |||||||||||||||||||||||||
Precious Metals | Gold | |||||||||||||||||||||||||||||
CEC Gold 100 oz Futures Contract | Long | 1 | December 2020 | 197,460 | 189,550 | (7,910) | (770) | |||||||||||||||||||||||
OSE Gold Futures Contract | Long | 3 | August 2021 | 189,020 | 181,909 | (7,111) | (114) | |||||||||||||||||||||||
Total Gold | 4 | 386,480 | 371,459 | (15,021) | (884) | |||||||||||||||||||||||||
Palladium | ||||||||||||||||||||||||||||||
NYMEX Palladium Futures Contract | Long | 2 | December 2020 | 439,440 | 466,100 | 26,660 | 240 | |||||||||||||||||||||||
Platinum | ||||||||||||||||||||||||||||||
OSE Platinum Futures Contract | Long | 6 | August 2021 | 89,944 | 83,999 | (5,945) | (1,195) | |||||||||||||||||||||||
Silver | ||||||||||||||||||||||||||||||
CEC Silver Futures Contract | Long | 1 | December 2020 | 142,055 | 117,470 | (24,585) | (4,755) | |||||||||||||||||||||||
Total Precious Metals | 13 | 1,057,919 | 1,039,028 | (18,891) | (6,594) | |||||||||||||||||||||||||
Foods & Fibers | Cocoa | |||||||||||||||||||||||||||||
ICE Cocoa Futures Contract | Long | 16 | December 2020 | 367,595 | 370,795 | 3,200 | (7,394) | |||||||||||||||||||||||
ICE Cocoa Futures Contract | Long | 5 | December 2020 | 132,400 | 127,300 | (5,100) | (2,100) | |||||||||||||||||||||||
Total Cocoa | 21 | 499,995 | 498,095 | (1,900) | (9,494) | |||||||||||||||||||||||||
Coffee | ||||||||||||||||||||||||||||||
ICE Coffee C Futures Contract | Long | 3 | December 2020 | 146,344 | 124,819 | (21,525) | 1,575 | |||||||||||||||||||||||
Cotton | ||||||||||||||||||||||||||||||
ICE Cotton No. 2 Futures Contract | Long | 6 | December 2020 | 197,280 | 197,370 | 90 | 1,500 | |||||||||||||||||||||||
Palm Oil | ||||||||||||||||||||||||||||||
KLSE Crude Palm Oil Futures Contract | Long | 23 | December 2020 | 412,483 | 375,538 | (36,945) | (8,717) | |||||||||||||||||||||||
Sugar | ||||||||||||||||||||||||||||||
ICE Sugar 11 Futures Contract | Long | 8 | March 2021 | 120,568 | 121,050 | 482 | 918 | |||||||||||||||||||||||
Total Foods & Fibers | 61 | 1,376,670 | 1,316,872 | (59,798) | (14,218) | |||||||||||||||||||||||||
Livestock | Feeder Cattle | |||||||||||||||||||||||||||||
CME Feeder Cattle Futures Contract | Short | (1) | November 2020 | (69,900) | (71,025) | (1,125) | 863 | |||||||||||||||||||||||
Lean Hogs | ||||||||||||||||||||||||||||||
CME Lean Hogs Futures Contract | Long | 1 | December 2020 | 24,910 | 25,240 | 330 | 450 |
21
Nuveen Gresham Managed Futures Strategy Fund (continued)
Consolidated Portfolio of Investments September 30, 2020
Investments in Derivatives (continued)
Futures Contracts (continued):
Commodity Group (5) | Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) | ||||||||||||||||||||||
Live Cattle | ||||||||||||||||||||||||||||||
CME Live Cattle Futures Contract | Long | 3 | December 2020 | $ | 134,240 | $ | 134,820 | $ | 580 | $ | (960) | |||||||||||||||||||
Total Livestock | 3 | 89,250 | 89,035 | (215) | 353 | |||||||||||||||||||||||||
Aggregate Long Commodity Futures Contracts | 321 | 7,368,412 | 7,376,410 | 7,998 | 63,872 | |||||||||||||||||||||||||
Aggregate Short Commodity Futures Contracts | (60) | (2,381,321) | (2,385,018) | (3,697) | (23,788) | |||||||||||||||||||||||||
Total Futures Contracts | 1,928 | $ | 357,390,757 | $ | 357,725,601 | $ | 334,844 | $ | (60,625) | |||||||||||||||||||||
Total receivable for variation margin on futures contracts |
| $ | 137,174 | |||||||||||||||||||||||||||
Total payable for variation margin on futures contracts |
| $ | (197,799) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Consolidated Portfolio of Investments are based on net assets. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Ratings are not covered by the report of independent registered public accounting firm. |
(3) | As of the end of the reporting period, repurchase agreement was held at the Subsidiary level. Refer to Consolidated Notes to Financial Statements, Note 1 – General Information and Note 8 – Basis for Consolidation and Subsidiary Information for more information. |
(4) | Other assets less liabilities includes the unrealized appreciation (depreciation) of futures contracts, which are recognized as part of the cash collateral at brokers for investments in futures contracts and/or receivable or payable for variation margin on futures contracts as presented on the Consolidated Statement of Assets and Liabilities. |
(5) | As of the end of the reporting period, 100% of the Fund’s investments in commodity futures are held at the Subsidiary level. Refer to Consolidated Notes to Financial Statements, Note 1 – General Information and Note 8 – Basis for Consolidation and Subsidiary Information for more information. |
N/A | Not applicable |
ASX | Austrailian Securities Exchange |
CBOE | Chicago Board Options Exchange |
CBOT | Chicago Board of Trade |
CEC | Commodities Exchange Center |
CME | Chicago Mercantile Exchange |
EOP | Euronext Paris |
EUX | Eurex Exchange |
FTSE | Financial Times Stock Exchange |
ICE | Intercontinental Exchange |
JSE | Johannesburg Stock Exchange |
KC HRW | Kansas City Hard Red Winter |
KLSE | Kuala Lumpur Stock Exchange |
LME | London Metal Exchange |
LSE | London Stock Exchange |
MDE | Mexican Derivatives Exchange |
MSCI | Morgan Stanley Capital International |
NY Harbor ULSD | New York Harbor Ultra-Low Sulfur Diesel |
NYMEX | New York Mercantile Exchange |
OMX | Stockholm Stock Exchange |
OSE | Osaka Stock Exchange |
SAF | South African Futures Exchange |
SGX | Singapore Exchange Limited |
S&P | Standard & Poor’s |
TSX | Toronto Stock Exchange |
VIX | Volatility Index |
WTI | West Texas Intermediate |
See accompanying notes to consolidated financial statements.
22
Consolidated Statement of Assets and Liabilities
September 30, 2020
Assets | ||||
Short-term investments, at value (cost $21,922,916) | $ | 21,922,110 | ||
Cash collateral at brokers for investments in futures contracts(1) | 2,546,629 | |||
Receivable for: | ||||
Variation margin on futures contracts | 137,174 | |||
From Adviser | 1,457 | |||
Other assets | 30,792 | |||
Total assets |
| 24,638,162
|
| |
Liabilities | ||||
Payable for: | ||||
Shares redeemed | 16,684 | |||
Variation margin on futures contracts | 197,799 | |||
Accrued expenses: | ||||
Custodian fees | 78,531 | |||
Professional fees | 58,877 | |||
Trustees fees | 361 | |||
12b-1 distribution and service fees | 61 | |||
Other | 6,270 | |||
Total liabilities | 358,583 | |||
Net assets | $ | 24,279,579 |
See accompanying notes to consolidated financial statements.
23
Consolidated Statement of Assets and Liabilities (continued)
Class A Shares | ||||
Net assets | $ | 150,488 | ||
Shares outstanding | 7,882 | |||
Net asset value (“NAV”) per share | $ | 19.09 | ||
Offering price per share (NAV per share plus maximum sales charge of 5.75% of offering price) | $ | 20.25 | ||
Class C Shares | ||||
Net assets | $ | 23,684 | ||
Shares outstanding | 1,250 | |||
NAV and offering price per share | $ | 18.95 | ||
Class R6 Shares | ||||
Net assets | $ | 23,828,044 | ||
Shares outstanding | 1,246,250 | |||
NAV and offering price per share | $ | 19.12 | ||
Class I Shares | ||||
Net assets | $ | 277,363 | ||
Shares outstanding | 14,529 | |||
NAV and offering price per share | $ | 19.09 | ||
Fund level net assets consist of: | ||||
Capital paid-in | $ | 24,638,448 | ||
Total distributable earnings | (358,869 | ) | ||
Fund level net assets | $ | 24,279,579 | ||
Authorized shares – per class | Unlimited | |||
Par value per share | $ | 0.01 |
(1) | Cash pledged to collateralize the net payment obligations for investments in futures. |
See accompanying notes to consolidated financial statements.
24
Consolidated Statement of Operations
Year Ended September 30, 2020
Investment Income | $ | 193,480 | ||
Expenses | ||||
Management fees | 239,830 | |||
12b-1 service fees – Class A Shares | 358 | |||
12b-1 distribution and service fees – Class C Shares | 246 | |||
Shareholder servicing agent fees | 996 | |||
Custodian fees | 41,723 | |||
Trustees fees | 14,498 | |||
Professional fees | 99,053 | |||
Shareholder reporting expenses | 11,747 | |||
Federal and state registration fees | 66,029 | |||
Other | 5,847 | |||
Total expenses before fee waiver/expense reimbursement | 480,327 | |||
Fee waiver/expense reimbursement | (171,543 | ) | ||
Net expenses | 308,784 | |||
Net investment income (loss) | (115,304 | ) | ||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: | ||||
Investments and foreign currency | 4,118 | |||
Futures contracts | (848,069 | ) | ||
Change in net unrealized appreciation (depreciation) of: | ||||
Investments and foreign currency | 14,798 | |||
Futures contracts | 565,390 | |||
Net realized and unrealized gain (loss) | (263,763 | ) | ||
Net increase (decrease) in net assets from operations | $ | (379,067 | ) |
See accompanying notes to consolidated financial statements.
25
Consolidated Statement of Changes in Net Assets
Year Ended September 30, 2020
Year Ended 9/30/20 | For the Period 10/1/18 (commencement of operations) through 9/30/19 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | (115,304 | ) | $ | 176,148 | |||
Net realized gain (loss) from: | ||||||||
Investments and foreign currency | 4,118 | 4,677 | ||||||
Futures contracts | (848,069 | ) | 3,312,981 | |||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments and foreign currency | 14,798 | (4,773 | ) | |||||
Futures contracts | 565,390 | (230,546 | ) | |||||
Net increase (decrease) in net assets from operations | (379,067 | ) | 3,258,487 | |||||
Distributions to Shareholders | ||||||||
Dividends: | ||||||||
Class A Shares | (13,880 | ) | — | |||||
Class C Shares | (3,681 | ) | — | |||||
Class R6 Shares | (3,944,255 | ) | (35,020 | ) | ||||
Class I Shares | (3,954 | ) | (35 | ) | ||||
Decrease in net assets from distributions to shareholders | (3,965,770 | ) | (35,055 | ) | ||||
Fund Share Transactions | ||||||||
Proceeds from sale of shares | 1,331,330 | 25,022,320 | ||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 9,993 | — | ||||||
1,341,323 | 25,022,320 | |||||||
Cost of shares redeemed | (962,659 | ) | — | |||||
Net increase (decrease) in net assets from Fund share transactions | 378,664 | 25,022,320 | ||||||
Net increase (decrease) in net assets | (3,966,173 | ) | 28,245,752 | |||||
Net assets at the beginning of period | 28,245,752 | — | ||||||
Net assets at the end of period | $ | 24,279,579 | $ | 28,245,752 |
See accompanying notes to consolidated financial statements.
26
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27
Year Ended September 30, 2020
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended September 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||||
Class A (10/18) |
| |||||||||||||||||||||||||||||||||||
2020 | $ | 22.55 | $ | (0.20 | ) | $ | (0.15 | ) | $ | (0.35 | ) | $ | (1.03 | ) | $ | (2.08 | ) | $ | (3.11 | ) | $ | 19.09 | ||||||||||||||
2019(e) | 20.00 | 0.08 | 2.47 | 2.55 | — | — | — | 22.55 | ||||||||||||||||||||||||||||
Class C (10/18) |
| |||||||||||||||||||||||||||||||||||
2020 | 22.38 | (0.29 | ) | (0.19 | ) | (0.48 | ) | (0.87 | ) | (2.08 | ) | (2.95 | ) | 18.95 | ||||||||||||||||||||||
2019(e) | 20.00 | (0.07 | ) | 2.45 | 2.38 | — | — | — | 22.38 | |||||||||||||||||||||||||||
Class R6 (10/18) | ||||||||||||||||||||||||||||||||||||
2020 | 22.58 | (0.09 | ) | (0.20 | ) | (0.29 | ) | (1.09 | ) | (2.08 | ) | (3.17 | ) | 19.12 | ||||||||||||||||||||||
2019(e) | 20.00 | 0.14 | 2.47 | 2.61 | (0.03 | ) | — | (0.03 | ) | 22.58 | ||||||||||||||||||||||||||
Class I (10/18) |
| |||||||||||||||||||||||||||||||||||
2020 | 22.58 | (0.20 | ) | (0.13 | ) | (0.33 | ) | (1.08 | ) | (2.08 | ) | (3.16 | ) | 19.09 | ||||||||||||||||||||||
2019(e) | 20.00 | 0.14 | 2.47 | 2.61 | (0.03 | ) | — | (0.03 | ) | 22.58 |
28
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | ||||||||||||||||||||||||||||
(1.36 | )% | $ | 150 | 2.20 | % | (1.71 | )% | 1.51 | % | (1.03 | )% | 0 | % | |||||||||||||||||||||
12.75 | 51 | 1.77 | 0.15 | 1.52 | 0.39 | 0 | ||||||||||||||||||||||||||||
(2.05 | ) | 24 | 2.95 | (2.17 | ) | 2.27 | (1.49 | ) | 0 | |||||||||||||||||||||||||
11.90 | 28 | 2.51 | (0.58 | ) | 2.27 | (0.34 | ) | 0 | ||||||||||||||||||||||||||
(1.06 | ) | 23,828 | 1.91 | (1.14 | ) | 1.23 | (0.45 | ) | 0 | |||||||||||||||||||||||||
13.06 | 28,139 | 1.50 | 0.44 | 1.26 | 0.68 | 0 | ||||||||||||||||||||||||||||
(1.23 | ) | 277 | 1.95 | (1.70 | ) | 1.26 | (1.01 | ) | 0 | |||||||||||||||||||||||||
13.06 | 28 | 1.51 | 0.42 | 1.27 | 0.66 | 0 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser. See Note 7 – Management Fees and Other Transactions with Affiliates for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period. The Fund did not invest in any long-term securities during the periods presented herein. |
(e) | For the period October 1, 2018 (commencement of operations) through September 30, 2019. |
See accompanying notes to consolidated financial statements.
29
Notes to Consolidated Financial Statements
1. General Information
Trust and Fund Information
The Nuveen Investment Trust V (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Trust is comprised of Nuveen Gresham Managed Futures Strategy Fund (the “Fund”), a non-diversified fund, among others. The Trust was organized as a Massachusetts business trust on September 27, 2006.
The end of the reporting period for the Fund is September 30, 2020, and the period covered by these Notes to Consolidated Financial Statements is for the fiscal year ended September 30, 2020 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Fund’s investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). The Adviser has overall responsibility for management of the Fund, oversees the management of the Fund’s portfolio, manages the Fund’s business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into a sub-advisory agreement with its affiliate Gresham Investment Management LLC (“Gresham”), to manage the Fund’s investment strategy.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class C Shares automatically convert to Class A Shares ten years after purchase. Class R6 Shares and Class I Shares are sold without an upfront sales charge.
Other Matters
The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Fund’s normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.
Subsidiary
Although the Fund may make investments in commodity-linked derivative instruments directly, the Fund expects to primarily gain exposure to these investments by investing up to 25% of its net assets in the Managed Futures Fund Ltd., (the “Subsidiary”) a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary is advised by the Adviser and sub-advised by Gresham. The Fund’s investment in its Subsidiary is intended to provide the Fund with exposure to commodity markets within the limits of current federal income tax laws applicable to investment companies such as the Fund, which limit the ability of investment companies to invest directly in commodity-linked derivative instruments. The Subsidiary has the same investment objective as the Fund, but unlike the Fund, it may invest without limitation in commodity-linked derivative instruments. The Subsidiary is otherwise subject to the same fundamental and non-fundamental investment restrictions as the Fund. Except as otherwise noted, for purposes of this report, references to the Fund’s investments may also be deemed to include the Fund’s indirect investments through its Subsidiary. The Subsidiary may also invest in U.S. Treasury securities for the purpose of posting margin on its commodity futures contracts.
2. Significant Accounting Policies
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Fund is an investment company and follows accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services – Investment Companies. The NAV for financial reporting purposes may differ from the NAV for processing security and shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the Fund.
Compensation
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 Fund’s Board of Trustees (the “Board”) has adopted a deferred compensation plan
30
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.
Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Foreign Currency Transactions and Translation
The books and records of the Fund are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.
Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received are recognized as a component of “Net realized gain (loss) from investments and foreign currency” on the Consolidated Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency” on the Consolidated Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Consolidated Statement of Operations, when applicable.
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.
Investments and Investment Income
Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Investment income is comprised of interest income, which is recorded on an accrual basis and includes accretion of discounts and the amortization of premium for financial reporting purposes. Interest income also reflects paydown gains and losses, if any.
Multiclass Operations and Allocations
Income and expenses of the Fund 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 are recorded to the specific class. 12b-1 distribution and service fees are allocated on a class-specific basis.
Sub-transfer agent fees and similar fees, which are recognized as a component of “Shareholder servicing agent fees” on the Consolidated Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on relative net assets.
Realized and unrealized capital gains and losses of the Fund are prorated among the classes based on the relative net assets of each class.
Netting Agreements
In the ordinary course of business, the Fund may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows the Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Fund manages its cash collateral and securities collateral on a counterparty basis.
The Fund’s investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 4 – Portfolio Securities and Investments in Derivatives.
31
Notes to Consolidated Financial Statements (continued)
New Accounting Pronouncements and Rule Issuances
Reference Rate Reform
In March 2020, FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Fund may elect to apply the optional expedients as of March 12, 2020 through December 31, 2022. Management has not yet elected to apply the optional expedients, but is currently assessing the impact of the ASU’s adoption to the Fund’s financial statements and various filings.
3. Investment Valuation and Fair Value Measurements
The Fund’s investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
Level 2 – | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.). | |
Level 3 – | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
A description of the valuation techniques applied to the Fund’s major classifications of assets and liabilities measured at fair value follows:
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Prices of fixed-income securities are generally provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2.
For events affecting the value of foreign securities between the time when the exchange on which they are traded closes and the time when the Fund’s net assets are calculated, such securities will be valued at fair value in accordance with procedures adopted by the Board. These foreign securities are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Any portfolio security or derivative for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued at fair value, as determined in good faith using procedures approved by the Board. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. To the extent the inputs are observable and timely, the values would be classified as Level 2 of the fair value hierarchy; otherwise they would be classified as Level 3.
The following table summarizes the market value of the Fund’s investments as of the end of the reporting period, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Short-Term Investments: | ||||||||||||||||
Repurchase Agreements | $ | — | $ | 2,204,479 | $ | — | $ | 2,204,479 | ||||||||
U.S. Government and Agency Obligations | — | 19,717,631 | — | 19,717,631 | ||||||||||||
Investments in Derivatives: | ||||||||||||||||
Futures Contracts* | 334,844 | — | — | 334,844 | ||||||||||||
Total | $ | 334,844 | $ | 21,922,110 | $ | — | $ | 22,256,954 |
* | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Consolidated Portfolio of Investments. |
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4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Fund that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure | |||||||||
Fixed Income Clearing Corporation | $ | 1,025,899 | $ | (1,025,899 | ) | $ | — | |||||
State Street Bank | 1,178,580 | (1,178,580 | ) | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Consolidated Portfolio of Investments for details on the repurchase agreements. |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investment Transactions
During the current fiscal period, the Fund did not have any long-term purchases and sales.
The Fund may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. The Fund has earmarked securities in their portfolios with a current value at least equal to the amount of the when issued/ delayed-delivery purchase commitments. If the Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Consolidated Statement of Assets and Liabilities.
Investments in Derivatives
The Fund is authorized to invest in certain derivative instruments. The Fund records derivative instruments at fair value, with changes in fair value recognized on the Consolidated Statement of Operations, when applicable. Even though the Fund’s investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Futures Contracts
The Fund invests in futures contracts. Upon execution of a futures contract, the Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as “Cash collateral at brokers for investments in futures contracts” on the Consolidated Statement of Assets and Liabilities. Investments in futures contracts obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the open contracts. If the Fund has unrealized appreciation, the clearing broker would credit the Fund’s account with an amount equal to appreciation and conversely, if the Fund has unrealized depreciation, the clearing broker would debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as “variation margin.” Variation margin is recognized as a receivable and/or payable for “Variation margin on futures contracts” on the Consolidated Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of “Change in net unrealized appreciation (depreciation) of futures contracts” on the Consolidated Statement of Operations. When the contract is closed or expired, the Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of “Net realized gain (loss) from futures contracts” on the Consolidated Statement of Operations.
Risks of investments in commodity futures contracts include possible adverse movement in the price of the commodities underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and the possibility that a change in the value of the contract may not correlate with a change in the value of the underlying commodities.
During the current fiscal period, the Fund invested in commodity futures, currency futures, equity index futures, interest rate and bond futures to gain long or short exposure.
33
Notes to Consolidated Financial Statements (continued)
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Average notional amount of futures contracts outstanding* | $ | 225,278,699 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all futures contracts held by the Fund as the end of the reporting period, the location of these instruments on the Consolidated Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Consolidated Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Fixed Income | Futures contracts | Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | $ | 51,739 | Payable for variation margin on futures contracts* | $ | 346,227 | |||||||
Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | (1,237 | ) | Payable for variation margin on futures contracts* | (7,243 | ) | |||||||||
Total | $ | 50,502 | $ | 338,984 |
Location on the Consolidated Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Currency | Futures contracts | Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | $ | — | Payable for variation margin on futures contracts* | $ | 2,957 | |||||||
Cash collateral at broker for investments in futures contracts and Receivable for variation margin on futures contracts* | (45,005 | ) | Payable for variation margin on futures contracts* | (53,990 | ) | |||||||||
Total | $ | (45,005 | ) | $ | (51,033 | ) |
Location on the Consolidated Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Equity | Futures contracts | Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | $ | 36,334 | Payable for variation margin on futures contracts* | $ | 31,858 | |||||||
Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | (9,835 | ) | Payable for variation margin on futures contracts* | (21,262 | ) | |||||||||
Total | $ | 26,499 | $ | 10,596 |
Location on the Consolidated Statement of Assets and Liabilities | ||||||||||||||
Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Commodity | Futures contracts | Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | $ | 173,227 | Payable for variation margin on futures contracts* | $ | 16,045 | |||||||
Cash collateral at brokers for investments in futures contracts and Receivable for variation margin on futures contracts* | (57,151 | ) | Payable for variation margin on futures contracts* | (127,820 | ) | |||||||||
Total | $ | 116,076 | $ | (111,775 | ) |
* | Value represents the cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Consolidated Portfolio of Investments and not the daily asset and/or liability derivative location as described in the table above. |
34
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Consolidated Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in Net Unrealized Appreciation (Depreciation) of Futures Contracts | |||||||
Commodity | Futures contracts | $ | 345,022 | $ | 169,783 | |||||
Currency | Futures contracts | (547,460 | ) | (211,324 | ) | |||||
Equity | Futures contracts | (1,240,138 | ) | 14,060 | ||||||
Fixed Income | Futures contracts | 594,507 | 592,871 | |||||||
Total | $ | (848,069 | ) | $ | 565,390 |
Financial Instrument Risk
The financial instruments used by the Fund are futures, whose values are based upon an underlying asset and generally represent future commitments that have a reasonable possibility of being settled in cash or through physical delivery. As of the end of the reporting period, the financial instruments held by the Fund were traded on an exchange and are standardized contracts.
Market risk is the potential for changes in the value of the financial instruments traded by the Fund due to market changes, including fluctuations in commodity prices. Investing in commodity futures contracts involves the Fund entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The market risk associated with the Fund’s commitments to purchase commodities will be limited to the gross or face amount of the contracts held. The Fund’s exposure to market risk may be influenced by a number of factors, including changes in international balances of payments and trade, currency devaluations and revaluations, changes in interest and foreign currency exchange rates, price volatility of commodity futures contracts and market liquidity, weather, geopolitical events and other factors.
Credit risk is the possibility that a loss may occur due to the failure of a counterparty performing according to the terms of the futures and option contracts. The Fund may be exposed to credit risk from its investments in futures contracts and options on futures contracts resulting from the clearing house associated with a particular exchange failing to meet its obligations to the Fund. In general, clearing houses are backed by their corporate members who may be required to share in the financial burden resulting from the nonperformance of one of their members, which should significantly reduce this credit risk. In cases where the clearing house is not backed by the clearing members (i.e., as in some foreign exchanges), it may be backed by a consortium of banks or other financial institutions. There can be no assurance that any counterparty, clearing member or clearing house will meet its obligations to the Fund. The Fund is subject to short exposure when it sells short a futures contract. Short sales are transactions in which the Fund initiates a position by selling a futures contract short. A short futures position allows the short seller to profit from declines in the price of the underlying commodity to the extent such declines exceed the transaction costs. In a short sale transaction, the Fund must deliver the underlying commodity at the contract price to a buyer of the contract who stands for delivery under the rules of the exchange that lists the contract or must offset the contract by entering into an opposite and offsetting transaction in the market.
A short sale creates the risk of an unlimited loss since the price of the underlying instrument in a futures contract could theoretically increase without limit, thus increasing the cost of covering the short positions. In circumstances where a market has reached its maximum price limits imposed by the exchange, the short seller may be unable to offset its short position until the next trading day, when prices could increase again in rapid trading.
The Fund’s risk of loss in the event of counterparty default is typically limited to the amounts recognized on the Consolidated Statement of Assets and Liabilities and not represented by the contract or notional amounts of the instruments.
The commodity markets have volatility risk. The commodity markets have experienced periods of extreme volatility. General market uncertainty and consequent repricing risk have led to market imbalances of sellers and buyers, which in turn have resulted in significant reductions in values of a variety of commodities. Similar future market conditions may result in rapid and substantial valuation increases or decreases in the Fund’s holdings. In addition, volatility in the commodity and securities markets may directly and adversely affect the setting of distribution rates on the Fund’s shares.
35
Notes to Consolidated Financial Statements (continued)
5. Fund Shares
Transactions in Fund shares during the current and prior fiscal period were as follows:
Year Ended 9/30/20 | For the Period 10/01/18 (commencement of operations) through 9/30/19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 17,878 | $ | 351,106 | 2,250 | $ | 47,320 | ||||||||||
Class C | — | — | 1,250 | 25,000 | ||||||||||||
Class R6 | — | — | 1,246,250 | 24,925,000 | ||||||||||||
Class I | 50,163 | 980,224 | 1,250 | 25,000 | ||||||||||||
Shares issued to shareholders due to reinvestment of distribution: | ||||||||||||||||
Class A | 513 | 9,993 | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | — | — | — | — | ||||||||||||
68,554 | 1,341,323 | 1,251,000 | 25,022,320 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (12,759 | ) | (247,662 | ) | — | — | ||||||||||
Class C | — | — | — | — | ||||||||||||
Class R6 | — | — | — | — | ||||||||||||
Class I | (36,884 | ) | (714,997 | ) | — | — | ||||||||||
(49,643 | ) | (962,659 | ) | — | — | |||||||||||
Net increase (decrease) | 18,911 | $ | 378,664 | 1,251,000 | $ | 25,022,320 |
6. Income Tax Information
The Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code (“Code”) applicable to regulated investment companies (“RICs”). Therefore, no federal income tax provision is required.
The Fund’s ability to make direct and indirect investments in commodities and certain related investments is limited by the Fund’s intention to qualify as a RIC under the Code. If the Fund does not appropriately limit such investments or if such investments are recharacterized for U.S. tax purposes, the Fund’s status as a RIC may be jeopardized. The Fund’s investment in its Subsidiary is intended to provide additional exposure to commodities while allowing the Fund to satisfy the requirements applicable to RICs. In the past, the IRS had issued private letter rulings to RICs to the effect that income deemed to be received from their wholly-owned subsidiaries meets the requirements of RIC qualification without regard to whether it is currently paid to the parent mutual fund in the form of a cash dividend (“repatriated”). In 2011 the IRS suspended the issuance of such rulings while considering the release of published guidance on the issue. It is unclear whether such guidance will be favorable to RICs or would eliminate the need for newly organized funds to seek their own rulings. The Fund has not received a private letter ruling. In the absence of a private letter ruling or guidance to the same or similar effect, the Fund will rely upon an opinion of counsel to the effect that, consistent with Section 851(b) of the Code, income received from a controlled foreign corporation (“CFC”) by a RIC will be considered qualifying income if it is distributed from the CFC in the year earned, and the Subsidiary will be operated consistent with the statutory provision. However, if the Fund was to fail to qualify as a RIC in any taxable year, and were ineligible to or otherwise did not cure such failure, the Fund would be subject to tax on its taxable income at corporate rates, and all distributions from earnings and profits, including any distributions of net long-term capital gains, would be taxable to shareholders as dividend income.
If the Subsidiary does not make the distributions, or do not make the distributions in the year earned, the Fund will still be required to recognize the Subsidiary’s income including net investment income, net realized gain on futures contracts and certain net unrealized gains on futures contracts as ordinary income for the purposes of calculating the Fund’s own taxable income. Net losses earned by the Subsidiary may not be netted with income or gain earned within the Fund and may not be carried forward for use in future years.
For all open tax years and all major taxing jurisdictions, the management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Fund.
36
The table below presents the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, as determined on a federal income tax basis, as of September 30, 2020.
For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.
Tax cost of investments | $ | 22,250,704 | ||
Gross unrealized: | ||||
Appreciation | $ | 7,136 | ||
Depreciation | (886 | ) | ||
Net unrealized appreciation (depreciation) of investments | $ | 6,250 |
Permanent differences, primarily due to distribution reallocations, foreign currency transactions, and calculation of taxable income from the Subsidiary, resulted in reclassifications among components of net assets as of September 30, 2020, the Fund’s tax year end.
The tax components of undistributed net ordinary income and net long-term capital gains as of September 30, 2020, the Fund’s tax year end, were as follows:
Undistributed net ordinary income1 | $ | 284,383 | ||
Undistributed net long-term capital gains | — |
1 | Net ordinary income consists of net taxable income derived from interest and net short-term capital gains, if any. |
The tax character of distributions paid during the Fund’s tax years ended September 30, 2020 and September 30, 2019 was designated for purposes of the dividends paid deduction as follows:
2020 | ||||
Distributions from net ordinary income¹ | $ | 2,288,052 | ||
Distributions from net long-term capital gains | 1,677,718 |
2019 | ||||
Distributions from net ordinary income1 | $ | 35,055 | ||
Distributions from net long-term capital gains | — |
1 | Net ordinary income consists of net taxable income derived from interest and net short-term capital gains, if any. |
As of September 30, 2020, the Fund’s tax year end, the Fund had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
Not subject to expiration | ||||
Short-Term | $ | 439,789 | ||
Long-Term | 220,544 | |||
Total | $ | 660,333 |
7. Management Fees and Other Transactions with Affiliates
Management Fees
The Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. Gresham is compensated for its services to the Fund from the management fees paid to the Adviser.
The Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables the Fund’s shareholders to benefit from growth in the assets within the Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is calculated according to the following schedule:
Average Daily Net Assets | Fund-Level Fee Rate | |||
For the first $125 million | 0.8000 | % | ||
For the next $125 million | 0.7875 | |||
For the next $250 million | 0.7750 | |||
For the next $500 million | 0.7625 | |||
For the next $1 billion | 0.7500 | |||
For the next $3 billion | 0.7250 | |||
For the next $2.5 billion | 0.7000 | |||
For the next $2.5 billion | 0.6875 | |||
For net assets over $10 billion | 0.6750 |
37
Notes to Consolidated Financial Statements (continued)
The annual complex-level fee, payable monthly, is calculated according to the following schedule:
Complex-Level Eligible Asset Breakpoint Level* | Effective Complex-Level Fee Rate at Breakpoint Level | |||
$55 billion | 0.2000 | % | ||
$56 billion | 0.1996 | |||
$57 billion | 0.1989 | |||
$60 billion | 0.1961 | |||
$63 billion | 0.1931 | |||
$66 billion | 0.1900 | |||
$71 billion | 0.1851 | |||
$76 billion | 0.1806 | |||
$80 billion | 0.1773 | |||
$91 billion | 0.1691 | |||
$125 billion | 0.1599 | |||
$200 billion | 0.1505 | |||
$250 billion | 0.1469 | |||
$300 billion | 0.1445 |
* | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen open-end and closed-end funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of September 30, 2020, the complex-level fee rate for the Fund was 0.1575%. |
Gresham manages the investments of the Subsidiary on a discretionary basis, subject to the supervision of the Adviser. The Subsidiary does not pay the Adviser or Gresham a management fee for their services. The Subsidiary has also entered into separate contracts for the provision of custody and transfer agency services. The Fund, as the sole shareholder of the Subsidiary, will bear the costs of these services, which will ultimately be borne by shareholders of the Fund.
The Adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 1.31% of the Fund’s average daily net assets of any class of Fund shares. However because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expense for the Class R6 Shares will be less than the expense limitation. The temporary expense limitation may be terminated or modified prior to the July 31, 2022 only with the approval of the Board.
Distribution and Service Fees
The Fund has adopted a distribution and service plan under rule 12b-1 under the 1940 Act. Class A Shares incur a 0.25% annual 12b-1 service fee. Class C Shares incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class R6 Shares and Class I Shares are not subject to 12b-1 distribution or service fees. The fees under this plan compensate Nuveen Securities, LLC, (the “Distributor”), a wholly-owned subsidiary of Nuveen, for services provided and expenses incurred in distributing shares of the Fund and establishing and maintaining shareholder accounts.
Other Transactions with Affiliates
During the current fiscal period, the Distributor collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
Sales charges collected (Unaudited) | $ | — | ||
Paid to financial intermediaries (Unaudited) | — |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
Commission advances (Unaudited) | $ | — |
To compensate for commissions advanced to financial intermediaries, 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 current fiscal period, the Distributor retained such 12b-1 fees as follows:
12b-1 fees retained (Unaudited) | $ | 186 |
38
The remaining 12b-1 fees charged to the Fund were paid to compensate financial intermediaries for providing services to the shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the current fiscal period, as follows:
CDSC retained (Unaudited) | $ | — |
As of the end of the reporting period, the percentage of Fund shares owned by TIAA are as follows:
TIAA owned shares | 98% |
8. Basis for Consolidation and Subsidiary Information
The Subsidiary was incorporated as a wholly-owned subsidiary acting as an investment vehicle of the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and statement of additional information. Under the Articles of Association, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary.
The Fund’s Consolidated Portfolio of Investments includes the portfolio holdings, including investments in derivatives, of the Fund and its Subsidiary. The Fund’s Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations and Consolidated Statement of Changes in Net Assets include the accounts of each Fund and its Subsidiary, and all inter-fund transactions and balances have been eliminated.
The following table summarizes the structure, incorporation and relationship information of each Subsidiary, and certain financial information of the Subsidiaries recognized in the consolidated financial statements referred to above.
Date of Incorporation | October 1, 2018 | |||
Fund Net Assets | ||||
Fund net assets | $ | 24,279,579 | ||
Subsidiary % of Fund net assets | 7.55% | |||
Consolidated Financial Statement Information | ||||
Total assets | $ | 1,914,136 | ||
Total liabilities | 80,146 | |||
Net assets | 1,833,990 | |||
Total investment income | 2,844 | |||
Net investment income (loss) | (22,708 | ) | ||
Net realized gain (loss) from futures contracts | 345,022 | |||
Change in net unrealized appreciation (depreciation) of investments and foreign currency | (8,616 | ) | ||
Change in net unrealized appreciation (depreciation) of futures contracts | 169,783 | |||
Increase (decrease) in net assets | 483,481 |
9. Subsequent Events
Fund Liquidation
On September 23, 2020, the Adviser announced that the Fund will be liquidated after the close of business on November 20, 2020, as approved by the Board on September 22, 2020. Effective October 23, 2020, the Fund stopped accepting purchases from new investors. Existing shareholders were able to continue to purchase Fund shares until November 6, 2020 and continue to reinvest dividends and capital gains distributions received from the Fund. The Fund reserves the right to modify the extent to which sales of shares are limited prior to the Fund’s liquidation. After the close of business on November 20, 2020 the Fund liquidated all remaining shareholder accounts and sent shareholders the proceeds of the liquidation.
39
Additional Fund Information (Unaudited)
Investment Adviser Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606
Sub-Advisers Gresham Investment Management LLC 257 Park Avenue South 7th Floor New York, NY 10010 | Independent Registered PricewaterhouseCoopers LLP One North Wacker Drive Chicago, IL 60606
Custodian State Street Bank & Trust One Lincoln Street Boston, MA 02111 | Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 | Transfer Agent and DST Asset Manager Solutions, Inc. (DST) P.O. Box 219140 Kansas City, MO 64121-9140 (800) 257-8787 |
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Portfolio of Investments Information: The Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov. | ||||||||||||||
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Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. | ||||||||||||||
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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. |
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Glossary of Terms Used in this Report
(Unaudited)
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Chicago Board Options Exchange (Cboe) Volatility Index® (VIX®): An index that is a key measure of market expectations of nearterm volatility conveyed by S&P 500® option prices. Since its introduction in 1993, VIX has been considered by many to be the world’s premier barometer of investor sentiment and market volatility (www.cboe.com). Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.
Commodity: A physical good, such as an agricultural product or metal, that is interchangeable with other goods of the same type. Commodity futures (contracts for the future delivery of a standardized amount of the commodity) are traded on exchanges such as the Chicago Board of Trade.
Dow Jones Industrial Average (DJIA): An average that tracks the performance of 30 large cap companies. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a
given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
ICE BofA 3 Month U.S. Treasury Bill Index: An unmanaged index that is comprised of a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month. At the end of the month, that issue is sold and rolled into a newly selected issue. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Lipper Alternative Managed Futures Funds Classification Average: Represents the average annualized returns for all reporting funds in the Lipper Alternative Managed Futures Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An unmanaged index, that measures the performance of the small cap segment of the U. S. equity universe which includes approximately 2000 of the smallest securities based on a contribution of their market cap and current index measurement. The index returns assume reinvestment of dividends, but do not reflect any applicable sales charges or management fees.
41
Annual Investment Management Agreement Approval Process
(Unaudited)
At a meeting held on May 19-21, 2020 (the “May Meeting”), the Board of Trustees (the “Board” and each Trustee, a “Board Member”) of the Fund, which is comprised entirely of Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), approved the renewal of the management agreement (the “Investment Management Agreement”) with Nuveen Fund Advisors, LLC (the “Adviser”) pursuant to which the Adviser serves as investment adviser to the Fund and the sub-advisory agreement (the “Sub-Advisory Agreement”) with Gresham Investment Management LLC (the “Sub-Adviser”) pursuant to which the Sub-Adviser serves as the investment sub-adviser to the Fund. Although the 1940 Act requires that continuances of the Advisory Agreements (as defined below) be approved by the in-person vote of a majority of the Independent Board Members, the May Meeting was held virtually through the internet in view of the health risks associated with holding an in-person meeting during the COVID-19 pandemic and governmental restrictions on gatherings. The May Meeting was held in reliance on an order issued by the Securities and Exchange Commission on March 13, 2020, as extended on March 25, 2020, which provided registered investment companies temporary relief from the in-person voting requirements of the 1940 Act with respect to the approval of a fund’s advisory agreement in response to the challenges arising in connection with the COVID-19 pandemic.
Following up to an initial two-year period, the Board considers the renewal of the Investment Management Agreement and Sub-Advisory Agreement on behalf of the Fund on an annual basis. The Investment Management Agreement and Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements” and the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser.” Throughout the year, the Board and its committees meet regularly and, at these meetings, review an extensive array of topics and information that are relevant to its annual consideration of the renewal of the advisory agreements for the Nuveen funds. Such information may address, among other things, fund performance; the Adviser’s strategic plans; the review of the funds and investment teams; compliance, regulatory and risk management matters; the trading practices of the various sub-advisers to the funds; valuation of securities; fund expenses; payments to financial intermediaries, including 12b-1 fees and sub-transfer agency fees, if applicable; and overall market and regulatory developments.
In addition to the information and materials received during the year, the Board, in response to a request made on its behalf by independent legal counsel, received extensive materials and information prepared specifically for its annual consideration of the renewal of the advisory agreements for the Nuveen funds by the Adviser and by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data. The materials cover a wide range of topics including, but not limited to, a description of the nature, extent and quality of services provided by the Fund Advisers; a review of each sub-adviser to the Nuveen funds and the applicable investment teams; an analysis of fund performance in absolute terms and as compared to the performance of certain peer funds and benchmarks with a focus on any performance outliers; an analysis of the fees and expense ratios of the Nuveen funds in absolute terms and as compared to those of certain peer funds with a focus on any expense outliers; a description of portfolio manager compensation; a review of the performance of various service providers; a description of various initiatives Nuveen had undertaken or continued during the year for the benefit of particular fund(s) and/or the complex; a description of the profitability or financial data of Nuveen and the sub-advisers to the Nuveen funds; and a description of indirect benefits received by the Adviser and the sub-advisers as a result of their relationships with the Nuveen funds. Further, the Board noted that the Fund may gain exposure to certain investments by investing in its wholly-owned subsidiary organized under the laws of the Cayman Islands, which is also advised by the Adviser and sub-advised by the Sub-Adviser for no additional fee. The review of services provided to the Fund and fees paid to the respective Fund Adviser encompasses this arrangement.
In continuing its practice, the Board met prior to the May Meeting to begin its considerations of the renewal of the Advisory Agreements. Accordingly, on April 27-28, 2020 (the “April Meeting”), the Board met to review and discuss, in part, the performance of the Nuveen funds and the Adviser’s evaluation of each sub-adviser to the Nuveen funds. In its review, the Board recognized the volatile market conditions occurring during the first half of 2020 arising, in part, from the public health crisis caused by the novel coronavirus known as COVID-19 and the resulting impact on fund performance. Accordingly, the Board reviewed, among other things, fund performance reflecting the more volatile periods, including for various time periods ended the first quarter of 2020 and for various time periods ended April 17, 2020. At the April Meeting, the Board Members asked questions and requested additional information that was provided for the May Meeting. In continuing its review of the Nuveen funds in light of the extraordinary market conditions experienced in early 2020, the Board received updated fund performance data reflecting various time periods ended May 8, 2020 for its May Meeting. The Board also continued its practice of seeking to meet periodically with the various sub-advisers to the Nuveen funds and their investment teams, when feasible.
The Independent Board Members considered the review of the advisory agreements for the Nuveen funds to be an ongoing process and employed the accumulated information, knowledge, and experience the Board Members had gained during their tenure on the boards governing the Nuveen funds and working with the Adviser and sub-advisers in their review of the advisory agreements. The contractual arrangements are a result of multiple years of review, negotiation and information provided in connection with the boards’ annual review of the Nuveen funds’ advisory arrangements and oversight of the Nuveen funds.
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The Independent Board Members were advised by independent legal counsel during the annual review process as well as throughout the year, including meeting in executive sessions with such counsel at which no representatives from the Adviser or the Sub-Adviser were present. In connection with their annual review, the Independent Board Members also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements.
The Board’s decision to renew the Advisory Agreements was not based on a single identified factor, but rather the decision reflected the comprehensive consideration of all the information provided throughout the year and at the April and May Meetings, and each Board Member may have attributed different levels of importance to the various factors and information considered in connection with the approval process. The following summarizes the principal factors and information, but not all the factors, the Board considered in deciding to renew the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the Fund with particular focus on the services and enhancements to such services provided during the last year. The Independent Board Members considered the Investment Management Agreement and the Sub-Advisory Agreement separately in the course of their review. With this approach, they considered the respective roles of the Adviser and the Sub-Adviser in providing services to the Fund.
With respect to the Adviser, the Board recognized that the Adviser has provided a vast array of services the scope of which has expanded over the years in light of regulatory, market and other developments, such as the development of a liquidity management program and expanded compliance programs for the Nuveen funds. The Board also noted the extensive resources, tools and capabilities the Adviser and its affiliates devoted to the various operations of the Nuveen funds. These services include, but are not limited to: investment oversight, risk management and securities valuation services (such as analyzing investment performance and risk data; overseeing and reviewing the various sub-advisers to the Nuveen funds and their investment teams; overseeing trade execution, soft dollar practices and securities lending activities; providing daily valuation services and developing related valuation policies, procedures and methodologies; overseeing risk disclosure; periodic testing of investment and liquidity risks; participating in financial statement and marketing disclosures; participating in product development; and participating in leverage management and liquidity monitoring); product management (such as analyzing a fund’s position in the marketplace, setting dividends, preparing shareholder and intermediary communications and other due diligence support); fund administration (such as preparing fund tax returns and other tax compliance services, overseeing the funds’ independent public accountants and other service providers; managing fund budgets and expenses; and helping to fulfill the funds’ regulatory filing requirements); oversight of shareholder services and transfer agency functions (such as overseeing transfer agent service providers which include registered shareholder customer service and transaction processing; and overseeing proxy solicitation and tabulation services); Board relations services (such as organizing and administering Board and committee meetings, preparing various reports to the Board and committees and providing other support services); compliance and regulatory oversight services (such as devising compliance programs; managing compliance policies; monitoring compliance with applicable fund policies and laws and regulations; and evaluating the compliance programs of the various sub-advisers to the Nuveen funds and certain other service providers); and legal support and oversight of outside law firms (such as helping to prepare and file registration statements and proxy statements; overseeing fund activities and providing legal interpretations regarding such activities; and negotiating agreements with other fund service providers).
The Board also recognized that the Adviser and its affiliates have undertaken a number of initiatives over the previous year that benefited the complex and/or particular Nuveen funds including, but not limited to:
• | Fund Improvements and Product Management Initiatives – continuing to proactively manage the Nuveen fund complex as a whole and at the individual fund level with an aim to enhance the shareholder outcomes through, among other things, rationalizing the product line and gaining efficiencies through mergers, repositionings and liquidations; launching new share classes; reviewing and updating investment policies and benchmarks; closing funds to new investments; rebranding the exchange-traded fund (“ETF”) product line; and integrating certain investment teams and changing the portfolio managers serving various funds; |
• | Capital Initiatives – continuing to invest capital to support new Nuveen funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds; |
• | Liquidity Management – implementing the liquidity risk management program which was designed to assess and manage the liquidity risk of the Nuveen funds. The Board noted that this program was particularly helpful in addressing the high volatility and liquidity challenges that arose in the market, particularly for the high yield municipal sector, during the first half of 2020; |
• | Compliance Program Initiatives – continuing efforts to mitigate compliance risk, increase operating efficiencies, strengthen key compliance program elements and support international business growth and other objectives through, among other things, integrating various investment teams across affiliates, consolidating marketing review functions, enhancing compliance related technologies and establishing and maintaining shared broad-based compliance policies throughout the organization and its affiliates; |
43
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
• | Risk Management and Valuation Services – continuing efforts to provide Nuveen with a more disciplined and consistent approach to identifying and mitigating the firm’s operational risks through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates and adopting a risk operational framework across the complex; |
• | Regulatory Matters – continuing efforts to monitor regulatory trends and advocate on behalf of the Nuveen funds, to implement and comply with new or revised rules and mandates and to respond to regulatory inquiries and exams; |
• | Government Relations – continuing efforts of various Nuveen teams and affiliates to develop policy positions on a broad range of issues that may impact the Nuveen funds, advocate and communicate these positions to lawmakers and other regulatory authorities and work with trade associations to ensure these positions are represented; |
• | Business Continuity, Disaster Recovery and Information Services – continuing to periodically test business continuity and disaster recovery plans, maintain an information security program designed to identify and manage information security risks, and provide reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, potential impact of new or revised laws and regulations, incident tracking and other relevant information technology risk-related reports; and |
• | Expanded Dividend Management Services – continuing to manage the dividends among the varying types of Nuveen funds within the Nuveen complex to be consistent with the respective fund’s product design and investing resources to develop systems to assist in the process for newer products such as target term funds and ETFs. |
The Board also noted the benefits to shareholders of investing in a Nuveen fund, as each Nuveen fund is a part of a large fund complex with a variety of investment disciplines, capabilities, expertise and resources available to navigate and support the funds including during stressed times as occurred in the market in the first half of 2020. In addition to the services provided by the Adviser, the Board also considered the risks borne by the Adviser and its affiliates in managing the Nuveen funds, including entrepreneurial, operational, reputational, regulatory and litigation risks.
The Board further considered the division of responsibilities between the Adviser and the Sub-Adviser and recognized that the Sub-Adviser and its investment personnel generally are responsible for the management of the Fund’s portfolio under the oversight of the Adviser and the Board. The Board considered an analysis of the Sub-Adviser provided by the Adviser which included, among other things, the Sub-Adviser’s assets under management and changes thereto, a summary of the applicable investment team and changes thereto, the investment approach of the team and the performance of the funds sub-advised by the Sub-Adviser over various periods. The Board further considered at the May Meeting or prior meetings evaluations of the Sub-Adviser’s compliance program and trade execution. The Board also considered the structure of investment personnel compensation programs and whether this structure provides appropriate incentives to act in the best interests of the respective Nuveen funds. The Board noted that the Adviser recommended the renewal of the Sub-Advisory Agreement.
Based on its review, the Board determined, in the exercise of its reasonable business judgment, that it was satisfied with the nature, extent and quality of services provided to the Fund under each Advisory Agreement.
B. The Investment Performance of the Fund and Fund Advisers
In evaluating the quality of the services provided by the Fund Advisers, the Board also received and considered a variety of investment performance data of the Nuveen funds they advise. In this regard, the Board reviewed, among other things, Fund performance over the quarter and one-year periods ending December 31, 2019. The performance data was based on Class A shares; however, the performance of other classes should be substantially similar as they invest in the same portfolio of securities and differences in performance among the classes would be principally attributed to the variations in the expense structures of the classes. Unless otherwise indicated, the performance data referenced below reflects the periods ended December 31, 2019. In general, the year 2019 was a period of strong market performance. However, as noted above, the Board recognized the unprecedented market volatility and decline that occurred in early 2020 and the significant impact it would have on fund performance. As a result, the Board reviewed performance data capturing more recent time periods, including performance data reflecting the first quarter of 2020 as well as performance data for various periods ended April 17, 2020 for its April Meeting and May 8, 2020 for its May Meeting.
The Board reviewed both absolute and relative fund performance during the annual review over the various time periods. With respect to the latter, the Board considered fund performance in comparison to the performance of peer funds (the “Performance Peer Group”) and recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks). For funds that had changes in portfolio managers, the Board considered performance data of such funds before and after such changes. In considering performance data, the Board is aware of certain inherent limitations with such data, including that differences between the objective(s), strategies and other characteristics of the Nuveen funds compared to the respective Performance Peer Group and/or benchmark(s) (such as differences in the use of leverage) as well as differences in the composition of the Performance Peer Group over time will necessarily contribute to differences in performance results and limit the value of the comparative information. To assist the Board in its review of the comparability of the relative performance, the Adviser has ranked the relevancy of the peer group to the funds as low, medium or high.
As noted above, the Board reviewed fund performance over various periods ended December 31, 2019 as well as the first quarter of 2020 and various time periods ended April 17, 2020 and May 8, 2020. In light of the significant market decline in the early part of 2020, the Board noted that a shorter
44
period of underperformance may significantly impact longer term performance. Further, the Board recognized that performance data may differ significantly depending on the ending date selected and accordingly, performance results for periods ended at the year-end of 2019 may vary significantly from performance results for periods ended in the first quarter of 2020, particularly given the extraordinary market conditions at that time as the impact of COVID-19 and other market developments unfolded. The Board considered a fund’s performance in light of the overall financial market conditions. In addition, the Board recognized that shareholders may evaluate performance based on their own holding periods which may differ from the periods reviewed by the Board and lead to differing results.
In addition to the performance data prepared in connection with the annual review of the advisory agreements of the Nuveen funds, the Board reviewed fund performance throughout the year at its quarterly meetings representing differing time periods and took into account the discussions that occurred at these Board meetings in evaluating a fund’s overall performance. The Board also considered, among other things, the Adviser’s analysis of each Nuveen fund’s performance, with particular focus on funds that were considered performance outliers (both overperformance and underperformance), the factors contributing to the performance and any steps taken to address any performance concerns. Given the volatile market conditions of early 2020, the Board considered the Adviser’s analysis of the impact of such conditions on the Nuveen funds’ performance.
The Board evaluated performance in light of various factors, including general market conditions, issuer-specific information, asset class information, fund cash flows and other factors. Accordingly, depending on the facts and circumstances, the Board may be satisfied with a fund’s performance notwithstanding that its performance may be below its benchmark or peer group for certain periods. However, with respect to any Nuveen funds for which the Board had identified performance issues, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers whether any steps are necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
The Board noted that the Fund outperformed its benchmark and ranked in the first quartile of its Performance Peer Group for the one-year period ended December 31, 2019. With the market decline in the first quarter of 2020, the Fund outperformed its benchmark and ranked in the first quartile of its Performance Peer Group for the one-year period ended March 31, 2020. The Board recognized that the Fund is relatively new with a performance history too limited to make a meaningful assessment of performance. The Board, however, was satisfied with the Fund’s overall performance.
C. Fees, Expenses and Profitability
1. Fees and Expenses
As part of its annual review, the Board considered the contractual management fee and net management fee (the management fee after taking into consideration fee waivers and/or expense reimbursements, if any) paid by a Nuveen fund to the Adviser in light of the nature, extent and quality of the services provided. The Board also considered the total operating expense ratio of each Nuveen fund before and after any fee waivers and/or expense reimbursements. More specifically, the Independent Board Members reviewed, among other things, each fund’s gross and net management fee rates (i.e., before and after expense reimbursements and/or fee waivers, if any) and net total expense ratio in relation to those of a comparable universe of funds (the “Peer Universe”) and to a more focused subset of comparable funds (the “Peer Group”) established by Broadridge. The Independent Board Members reviewed the methodology Broadridge employed to establish its Peer Universe and Peer Group and recognized that differences between the applicable fund and its respective Peer Universe and/or Peer Group as well as changes to the composition of the Peer Group and/or Peer Universe from year to year may limit some of the value of the comparative data. The Independent Board Members also considered a fund’s operating expense ratio as it more directly reflected the shareholder’s costs in investing in the respective fund.
In their review, the Independent Board Members considered, in particular, each Nuveen fund with a net expense ratio of six basis points or higher compared to that of its peer average (each, an “Expense Outlier Fund”) and an analysis as to the factors contributing to each such fund’s higher relative net expense ratio. Accordingly, in reviewing the comparative data between a fund and its peers, the Board generally considered the fund’s net expense ratio and fees to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group. The Independent Board Members also considered, in relevant part, a fund’s net management fee and net total expense ratio in light of its performance history.
In their review of the fee arrangements for the Nuveen funds, the Independent Board Members considered the management fee schedules, including the complex-wide and fund-level breakpoint schedules, and the expense reimbursements and/or fee waivers provided by Nuveen for each fund, as applicable. The Board noted that across the Nuveen fund complex, the complex-wide fee breakpoints reduced fees by $56.6 million and fund-level breakpoints reduced fees by $66.8 million in 2019. Further, fee caps and waivers for all applicable Nuveen funds saved approximately an additional $13.7 million in fees for shareholders in 2019.
With respect to the Sub-Adviser, the Board also considered the sub-advisory fee schedule paid to the Sub-Adviser in light of the sub-advisory services provided to the Fund, the breakpoint schedule and comparative data of the fees the Sub-Adviser charges to other clients, if any. In its review, the Board recognized that the compensation paid to the Sub-Adviser is the responsibility of the Adviser, not the Fund.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
The Board noted that the Fund had a net management fee and a net expense ratio that were below the respective peer averages.
Based on its review of the information provided, the Board determined that the Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
In determining the appropriateness of fees, the Board also considered information regarding the fee rates the respective Fund Advisers charged to certain other types of clients and the type of services provided to these other clients. With respect to the Adviser and/or the Sub-Adviser, such other clients may include retail and institutional managed accounts advised by the Sub-Adviser. The Board further noted that the Adviser also advised certain ETFs sponsored by Nuveen.
The Board recognized that the Fund had an affiliated sub-adviser and, with respect to affiliated sub-advisers, reviewed, among other things, the range of fees assessed for managed accounts offered by Nuveen.
In considering the fee data of other clients, the Board considered, among other things, the differences in the amount, type and level of services provided to the Nuveen funds relative to other clients as well as the differences in portfolio investment policies, investor profiles, account sizes and regulatory requirements, all of which contribute to the variations in the fee schedules. The Board recognized the complexity and myriad of services the Adviser had provided to the Nuveen funds compared to the other types of clients as the Adviser is principally responsible for all aspects of operating the funds, including complying with the increased regulatory requirements required when managing the funds as well as the increased entrepreneurial, legal and regulatory risks that the Adviser incurs in sponsoring and managing the funds. Further, with respect to ETFs, the Board considered that Nuveen ETFs are passively managed compared to the active management of the other Nuveen funds which contributed to the differences in fee levels between the Nuveen ETFs and other Nuveen funds. In general, higher fee levels reflect higher levels of service provided by the Adviser, increased investment management complexity, greater product management requirements, and higher levels of business risk or some combination of these factors. The Board further considered that the Sub-Adviser’s fee is essentially for portfolio management services and therefore more comparable to the fees it receives for retail wrap accounts. The Board concluded the varying levels of fees were justified given, among other things, the inherent differences in the products and the level of services provided to the Nuveen funds versus other clients, the differing regulatory requirements and legal liabilities and the entrepreneurial, legal and regulatory risks incurred in sponsoring and advising a registered investment company.
3. Profitability of Fund Advisers
In their review, the Independent Board Members considered information regarding Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2019 and 2018. The Board reviewed, among other things, Nuveen’s net margins (pre-tax) (both including and excluding distribution expenses); gross and net revenue margins (pre- and post-tax); revenues, expenses, and net income (pre-tax and after-tax and before distribution) of Nuveen for fund advisory services; and comparative profitability data comparing the margins of Nuveen compared to the adjusted margins of certain peers with publicly available data and with the most comparable assets under management (based on asset size and asset composition) for each of the last two calendar years. The Board also reviewed the revenues and expenses the Adviser derived from its ETF product line for the 2018 and 2019 calendar years.
In reviewing the profitability data, the Independent Board Members recognized the subjective nature of calculating profitability as the information is not audited and is dependent on cost allocation methodologies to allocate expenses of Nuveen and its affiliates between the fund and non-fund businesses. The expenses to be allocated include direct expenses in servicing the Nuveen funds as well as indirect and/or shared costs (such as overhead, legal and compliance) some of which are attributed to the Nuveen funds pursuant to the cost allocation methodologies. The Independent Board Members reviewed a description of the cost allocation methodologies employed to develop the financial information and a summary of the history of changes to the methodology over the eleven-year period from 2008 to 2019. The Board had also appointed three Independent Board Members, along with the assistance of independent counsel, to serve as the Board’s liaisons to review the development of the profitability data and any proposed changes to the cost allocation methodology prior to incorporating any such changes and to report to the full Board. The Board recognized that other reasonable and valid allocation methodologies could be employed and could lead to significantly different results. Based on the data, the Independent Board Members noted that Nuveen’s net margins were higher in 2019 than the previous year and considered the key drivers behind the revenue and expense changes that impacted Nuveen’s net margins between the years. The Board also noted the reinvestments of some of the profits into the business through, among other things, the investment of seed capital in certain funds and continued investments in enhancements to information technology, internal infrastructure and data management improvements and global investment and innovation projects.
As noted above, the Independent Board Members also considered Nuveen’s margins from its relationship to the Nuveen funds compared to the adjusted margins of certain peers with publicly available data and with the most comparable assets under management (based on asset size and asset composition) to Nuveen for the calendar years 2019 and 2018. The Independent Board Members noted that Nuveen’s margins from its relationships with the Nuveen funds were on the low range compared to the adjusted margins of the peers. The Independent Board Members,
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however, recognized that it is difficult to make comparisons of profitability with other investment adviser peers given that comparative data is not generally public and the calculation of profitability is subjective and affected by numerous factors (such as types of funds a peer manages, its business mix, its cost of capital, the numerous assumptions underlying the methodology used to allocate expenses and other factors) which can have a significant impact on the results.
Aside from Nuveen’s profitability, the Board recognized that the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). As such, the Board also reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves for the 2019 and 2018 calendar years to consider the financial strength of TIAA. The Board recognized the benefit of having an investment adviser and its parent with significant resources, particularly during periods of market stress.
In addition to Nuveen, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationships with the Nuveen funds. In this regard, the Independent Board Members reviewed, among other things, the Sub-Adviser’s revenues, expenses and net revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2019 as well as its pre-tax and after-tax net revenue margins for 2019 compared to such margins for 2018.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered any other ancillary benefits derived by the respective Fund Adviser from its relationship with the Nuveen funds as discussed in further detail below.
Based on a consideration of all the information provided, the Board noted that Nuveen’s and the Sub-Adviser’s level of profitability was acceptable and not unreasonable in light of the services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Board considered whether there have been economies of scale with respect to the management of the Nuveen funds and whether these economies of scale have been appropriately shared with the funds. The Board recognized that although economies of scale are difficult to measure, there are several methods to help share the benefits of economies of scale, including breakpoints in the management fee schedule, fee waivers and/or expense limitations, the pricing of Nuveen funds at scale at inception and investments in Nuveen’s business which can enhance the services provided to the funds for the fees paid. The Board noted that Nuveen generally has employed these various methods. In this regard, the Board noted that the management fee of the Adviser is generally comprised of a fund-level component and a complex-level component each with its own breakpoint schedule, subject to certain exceptions. The Board reviewed the fund-level and complex-level fee schedules. The Board considered that the fund-level breakpoint schedules are designed to share economies of scale with shareholders if the particular fund grows, and the complex-level breakpoint schedule is designed to deliver the benefits of economies of scale to shareholders when the eligible assets in the complex pass certain thresholds even if the assets of a particular fund are unchanged or have declined. In the calculation of the complex-level component, the Board noted that it had approved the acquisition of several Nuveen funds by similar TIAA-CREF funds in 2019. However, to mitigate the loss of the assets of these Nuveen funds deemed eligible to be included in the calculation of the complex-wide fee when these Nuveen funds left the complex upon acquisition, Nuveen agreed to credit approximately $460 million to assets under management to the Nuveen complex in calculating the complex-wide component.
In addition to the fund-level and complex-level fee schedules, the Independent Board Members considered the temporary and/or permanent expense caps applicable to certain Nuveen funds (including the amounts of fees waived or amounts reimbursed to the respective funds in 2018 and 2019), including the temporary expense cap applicable to the Fund.
The Independent Board Members also recognized the Adviser’s continued reinvestment in its business through, among other things, investments in its business infrastructure and information technology, portfolio accounting system and other systems and platforms that will, among other things, support growth, simplify and enhance information sharing, and enhance the investment process to the benefit of all of the Nuveen funds.
Based on its review, the Board concluded that the current fee arrangements together with the Adviser’s reinvestment in its business appropriately shared any economies of scale with shareholders.
E. Indirect Benefits
The Independent Board Members received and considered information regarding other benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds. The Independent Board Members recognized that an affiliate of the Adviser serves as principal underwriter providing distribution and/or shareholder services to the open-end funds. The Independent Board Members further noted that subject to certain exceptions, the Nuveen open-end funds pay 12b-1 fees and while a majority of such fees were paid to third party broker-dealers, the Board reviewed the amount retained by the Adviser’s affiliate. In addition, the Independent Board Members also noted that various sub-advisers may engage in soft dollar transactions pursuant to which they may receive the benefit of research products and other services provided by broker-dealers executing portfolio transactions on behalf of the applicable Nuveen funds, although the Board recognized that certain sub-advisers may be phasing out the use of soft dollars over time. The Board noted that the Sub-Adviser does not participate in soft dollar arrangements with respect to Fund portfolio transactions.
Based on its review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Fund were reasonable and within acceptable parameters.
47
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
F. Other Considerations
The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to the Fund and that the Advisory Agreements be renewed.
48
Liquidity Risk Management Program
(Unaudited)
Discussion of the operation and effectiveness of the Fund’s liquidity risk management program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund covered in this Report adopted and implemented a liquidity risk management program (the “Program”), which is designed to manage the Fund’s liquidity risk. The Program consists of various protocols for assessing and managing the Fund’s liquidity risk. The Fund’s Board of Trustees (the “Board”) previously designated Nuveen Fund Advisors, LLC, the Fund’s investment adviser (the “Adviser”), as the administrator of the Program. The Adviser’s Liquidity Monitoring and Analysis Team (“LMAT”) carries out day-to-day Program management with oversight by the Adviser’s Liquidity Oversight Sub-Committee (“LOSC”). LMAT and LOSC are composed of personnel from the Adviser and Teachers Advisors, LLC, an affiliate of the Adviser.
At a May 20, 2020 meeting of the Board, the Adviser provided the Board with a written report addressing the Program’s operation, adequacy and effectiveness of implementation for the calendar year 2019 (the “Review Period”), as required under the Liquidity Rule. The report noted that the Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Fund’s liquidity developments.
In accordance with the Program, LMAT assesses the Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of its portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash equivalents, borrowing arrangements, and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each of the Fund’s portfolio investments are classified into one of four liquidity categories (including the most liquid, “Highly Liquid,” and the least liquid, “Illiquid,” as discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and investment-specific considerations, as well as market depth, using third-party vendor data.
A fund that does not primarily hold Highly Liquid investments must, among other things, determine a minimum percentage of the fund’s net assets that must be invested in Highly Liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, the Fund primarily held Highly Liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.
The Liquidity Rule also limits a fund’s investments in Illiquid investments. Specifically, the Liquidity Rule prohibits a fund from acquiring Illiquid investments if doing so would result in the fund holding more than 15% of its net assets in Illiquid investments, and requires certain reporting to the fund’s board and the Securities and Exchange Commission any time a fund’s holdings of Illiquid investments exceeds 15% of net assets. During the Review Period, the Fund did not exceed the 15% limit on Illiquid investments.
49
(Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. None of the Trustees who are not “interested” persons of the Funds (referred to herein as “Independent Trustees”) has ever been a Trustee 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 Trustee 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 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Independent Trustees: | ||||||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Trustee | 2008 | Formerly, a Co-Founding Partner, Promus Capital (2008-2017); Director, Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; formerly, Director, Fulcrum IT Services LLC (2010-2019); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003- 2007) and Northern Trust Hong Kong Board (1997-2004). | 152 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine Foundation, a private philanthropic corporation; Director and Chairman, United Fire Group, a publicly held company; Director, Public member, American Board of Orthopaedic Surgery (since 2015); Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy and The Gazette Company; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 152 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2003 | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director of Wellmark, Inc. (since 2009); past Director (2005-2015), and past President (2010- 2014) Beta Gamma Sigma, Inc., The International Business Honor Society; formerly, Director (2004-2018) of Xerox Corporation; Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 152 |
50
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Albin F. Moschner 1952 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions; formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions (1991-1996) and Chief Executive Officer (1995-1996) of Zenith Electronics Corporation. | 152 | ||||
John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Member of Board of Directors of Core12 LLC. (since 2008), a private firm which develops branding, marketing and communications strategies for clients; served The President’s Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007. | 152 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since 2013); formerly, Board Member, U.S. Endowment for Forestry and Communities (2013-2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 152 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Former Director, Chicago Board Options Exchange (2006-2017), and C2 Options Exchange, Incorporated (2009-2017); former Director, Cboe Global Markets, Inc., formerly, CBOE Holdings, Inc. (2010-May 2020); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | 152 | ||||
Matthew Thornton III 1958 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2020 | Formerly, Executive Vice President and Chief Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation (“FedEx”) (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly, Member of the Board of Directors (2012-2018), Safe Kids Worldwide® (a non-profit organization dedicated to preventing childhood injuries). Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Director (since November 2020), Crown Castle International Corp. (owns, operates and leases cell towers and fiber routes supporting small cells and fiber solutions). | 152 |
51
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | ||||
Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | 152 | ||||
Robert L. Young 1963 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2017 | Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (formerly, One Group Dealer Services, Inc.) (1999-2017). | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | |||||
Officers of the Funds: | ||||||||
Christopher E. Stickrod 1976 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 2020 | Senior Managing Director (since 2017) and Head of Advisory Product (since 2020), formerly, Managing Director (2016-2017) and Senior Vice President (2013-2016) of Nuveen, LLC; Senior Managing Director of Nuveen Securities, LLC (since 2018) and of Nuveen Fund Advisors, LLC (since 2019). | |||||
Mark J. Czarniecki 1979 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Secretary | 2013 | Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2016) and Nuveen Fund Advisors (since 2017); Vice President and Associate General Counsel of Nuveen (since 2013) and Vice President, Assistant Secretary and Associate General Counsel of Nuveen Asset Management (since 2018). | |||||
Diana R. Gonzalez 1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2017 | Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice President and Associate General Counsel of Nuveen (since 2017); Associate General Counsel of Jackson National Asset Management (2012-2017). | |||||
Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2016 | Managing Director (since 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011- 2016) of Nuveen; Managing Director (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. | |||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | |||||
Brian J. Lockhart 1974 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2019 | Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Vice President (2010-2017) of Nuveen; Head of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); Chartered Financial Analyst and Certified Financial Risk Manager. |
52
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | |||||
Jacques M. Longerstaey 1963 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since May 2019); Senior Managing Director (since May 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (from 2013-2019). | |||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2007 | Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen Investments, Inc., formerly, Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly Executive Vice President (2016-2017) and Managing Director (2008-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC, formerly, Executive Vice President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC, formerly Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2011-2016); Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC, formerly Executive Vice President (2016-2017); Vice President (since 2007) and Secretary (since 2016), formerly, Assistant Secretary, of NWQ Investment Management Company, LLC, Symphony Asset Management, LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010). Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative Investments, LLC. | |||||
Jon Scott Meissner 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen (since 2017); Managing Director of Nuveen Fund Advisors, LLC (since 2019); Senior Director of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since 2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004. | |||||
Deann D. Morgan 1969 100 Park Avenue New York, NY 10016 | Vice President | 2020 | President, Nuveen Fund Advisors, LLC (since November 2020); Executive Vice President, Global Head of Product at Nuveen (since 2019); Co-Chief Executive Officer of Nuveen Securities, LLC (since March 2020); Managing Member MDR Collaboratory LLC (since 2018); Managing Director, Head of Wealth Management Product Structuring & COO Multi Asset Investing. The Blackstone Group (2013-2017). | |||||
Christopher M. Rohrbacher 1971 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Managing Director (since 2017) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2017), formerly, Senior Vice President (2016-2017), General Counsel (since 2020), formerly, Co-General Counsel (2019-2020) and Assistant Secretary (since 2016) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Senior Vice President (2012-2017) and Associate General Counsel (since 2016), formerly, Assistant General Counsel (2008-2016) of Nuveen. | |||||
William A. Siffermann 1975 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2017 | Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President (2011-2016) of Nuveen. | |||||
E. Scott Wickerham 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President and Controller | 2019 | Senior Managing Director, Head of Fund Administration at Nuveen, LLC (since 2019), formerly, Managing Director; Senior Managing Director (since 2019), Nuveen Fund Advisors, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the Treasurer (since 2017) to the CREF Accounts; Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions with TIAA since 2006. |
53
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | |||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Chief Compliance Officer | 1988 | Managing Director (2002-2020) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (2002-2020), Assistant Secretary (1997-2020) and Co-General Counsel (2011-2020) of Nuveen Fund Advisors, LLC; Managing Director (2004-2020) and Assistant Secretary (1994-2020) of Nuveen Investments, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (2011-2020); Vice President (2017-2020) Managing Director (2003-2017) and Assistant Secretary (2003-2020) of Symphony Asset Management LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC (2006-2020) and of Winslow Capital Management, LLC (2010-2020); Chartered Financial Analyst. |
(1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the director was first elected or appointed to any fund in the Nuveen fund complex. |
(2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen fund complex. |
54
Notes
55
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals and their clients have relied on Nuveen to provide
dependable investment solutions through continued adherence to proven, long-term investing
principles. Today, we offer a range of high quality solutions designed to
be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
Find out how we can help you.
To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial professional, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mutual-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com | MAN-GMF-0920P 1401970-INV-Y-11/21 |
Income Fund
Fund Name | Class A | Class C | Class R6 | Class I |
Nuveen NWQ Flexible Income Fund | NWQAX | NWQCX | NQWFX | NWQIX |
Total Returns as of September 30, 2020* | |||||||
Average Annual | Expense Ratios** | ||||||
Inception Date | 1-Year | 5-Year | 10-Year | Gross | Net | ||
Class A Shares at NAV | 12/09/09 | 2.35% | 6.43% | 6.47% | 1.06% | 0.96% | |
Class A Shares at maximum Offering Price | 12/09/09 | (2.51)% | 5.40% | 5.96% | - | - | |
Bloomberg Barclays U.S. Aggregate Bond Index | - | 6.98% | 4.18% | 3.64% | - | - | |
ICE BofA Fixed Rate Preferred Securities Index | - | 4.34% | 6.16% | 6.29% | - | - | |
ICE BofAML U.S. 50% Corporate and 50% High Yield Index | - | 5.13% | 6.33% | 5.75% | - | - | |
Lipper Flexible Income Funds Classification Average | - | 3.48% | 4.97% | 5.35% | - | - | |
Class C Shares | 12/09/09 | 1.59% | 5.64% | 5.68% | 1.81% | 1.71% | |
Class I Shares | 12/09/09 | 2.60% | 6.70% | 6.75% | 0.80% | 0.71% |
Total Returns as of September 30, 2020* | ||||||
Average Annual | Expense Ratios** | |||||
Inception Date | 1-Year | Since Inception | Gross | Net | ||
Class R6 Shares | 6/30/16 | 2.69% | 6.19% | 0.74% | 0.64% |
Share Class | ||||
Class A1 | Class C | Class R6 | Class I | |
Dividend Yield | 4.17% | 3.63% | 4.66% | 4.60% |
SEC 30-Day Yield - Subsidized | 3.24% | 2.63% | 3.70% | 3.63% |
SEC 30-Day Yield - Unsubsidized | 3.15% | 2.55% | 3.62% | 3.56% |
Fund Allocation (% of net assets) | |
Corporate Bonds | 58.7% |
$1,000 Par (or similar) Institutional Preferred | 13.2% |
Convertible Preferred Securities | 8.2% |
$25 Par (or similar) Retail Preferred | 6.9% |
Common Stocks | 5.6% |
Structured Notes | 1.4% |
Convertible Bonds | 1.2% |
Investments Purchased with Collateral from Securities Lending | 0.4% |
Repurchase Agreements | 3.5% |
Other Assets Less Liabilities | 0.9% |
Net Assets | 100% |
Top Five Issuers (% of net assets) | |
Hewlett Packard Enterprise Co | 2.5% |
ViacomCBS Inc | 2.1% |
Citigroup Inc | 1.8% |
Emera Inc | 1.5% |
McDonald’s Corp | 1.4% |
Portfolio Composition (% of net assets) | |
Banks | 9.5% |
Electric Utilities | 7.2% |
Media | 6.9% |
Semiconductors & Semiconductor Equipment | 5.5% |
Technology Hardware, Storage & Peripherals | 5.3% |
Health Care Providers & Services | 5.2% |
Machinery | 3.7% |
Chemicals | 3.6% |
Multi-Utilities | 3.3% |
Pharmaceuticals | 3.1% |
Automobiles | 3.0% |
Oil, Gas & Consumable Fuels | 2.8% |
Insurance | 2.5% |
Consumer Finance | 2.3% |
Equity Real Estate Investment Trust | 2.1% |
Capital Markets | 2.0% |
Life Sciences Tools & Services | 1.9% |
Food Products | 1.6% |
Hotels, Restaurants & Leisure | 1.4% |
Software | 1.3% |
Other 1 | 19.6% |
Structured Notes | 1.4% |
Investments Purchased with Collateral from Securities Lending | 0.4% |
Repurchase Agreements | 3.5% |
Other Assets Less Liabilities | 0.9% |
Net Assets | 100% |
Bond Credit Quality (% of total fixed income investments) | |
AA | 0.3% |
A | 6.7% |
BBB | 43.1% |
BB or Lower | 42.9% |
N/R (not rated) | 7.0% |
Total | 100% |
1 | See Portfolio of Investments for details on "other" Portfolio Composition. |
Share Class | ||||
Class A | Class C | Class R6 | Class I | |
Actual Performance | ||||
Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value | $1,141.79 | $1,137.43 | $1,143.32 | $1,143.02 |
Expenses Incurred During the Period | $ 5.10 | $ 9.11 | $ 3.44 | $ 3.81 |
Hypothetical Performance (5% annualized return before expenses) | ||||
Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value | $1,020.31 | $1,016.55 | $1,021.86 | $1,021.51 |
Expenses Incurred During the Period | $ 4.81 | $ 8.59 | $ 3.24 | $ 3.60 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
LONG-TERM INVESTMENTS – 95.2% | ||||||||
CORPORATE BONDS – 58.7% | ||||||||
Aerospace & Defense – 0.5% | ||||||||
$ 6,150 | General Dynamics Corp | 3.625% | 4/01/30 | A | $ 7,318,456 | |||
Air Freight & Logistics – 0.7% | ||||||||
11,262 | XPO Logistics Inc, 144A | 6.500% | 6/15/22 | BB- | 11,290,155 | |||
Auto Components – 0.7% | ||||||||
8,595 | American Axle & Manufacturing Inc, (3) | 6.250% | 4/01/25 | B2 | 8,506,471 | |||
1,350 | American Axle & Manufacturing Inc | 6.500% | 4/01/27 | B2 | 1,306,125 | |||
2,000 | Dana Financing Luxembourg Sarl, 144A | 5.750% | 4/15/25 | BB+ | 2,045,000 | |||
11,945 | Total Auto Components | 11,857,596 | ||||||
Automobiles – 2.5% | ||||||||
10,810 | Ford Motor Co | 8.500% | 4/21/23 | BB+ | 11,782,900 | |||
5,550 | General Motors Co | 5.400% | 10/02/23 | BBB | 6,117,819 | |||
17,630 | General Motors Co | 6.600% | 4/01/36 | BBB | 21,429,297 | |||
33,990 | Total Automobiles | 39,330,016 | ||||||
Banks – 0.3% | ||||||||
4,650 | CIT Group Inc | 5.000% | 8/01/23 | BBB- | 4,824,375 | |||
Beverages – 0.8% | ||||||||
9,935 | Anheuser-Busch InBev Finance Inc | 4.900% | 2/01/46 | BBB+ | 12,195,271 | |||
Biotechnology – 0.2% | ||||||||
3,885 | Emergent BioSolutions Inc, 144A | 3.875% | 8/15/28 | BB- | 3,900,268 | |||
Capital Markets – 0.9% | ||||||||
6,060 | Donnelley Financial Solutions Inc | 8.250% | 10/15/24 | B | 6,363,000 | |||
5,990 | Raymond James Financial Inc | 4.950% | 7/15/46 | BBB+ | 7,731,047 | |||
12,050 | Total Capital Markets | 14,094,047 | ||||||
Chemicals – 3.6% | ||||||||
14,285 | Air Products and Chemicals Inc | 2.800% | 5/15/50 | A | 14,987,134 | |||
8,550 | Ashland LLC | 6.875% | 5/15/43 | BB+ | 10,944,000 | |||
2,740 | Blue Cube Spinco LLC | 9.750% | 10/15/23 | BB- | 2,825,625 | |||
2,990 | Blue Cube Spinco LLC | 10.000% | 10/15/25 | BB- | 3,161,925 | |||
4,090 | CVR Partners LP / CVR Nitrogen Finance Corp, 144A | 9.250% | 6/15/23 | B+ | 3,772,166 | |||
21,689 | Trinseo Materials Operating SCA / Trinseo Materials Finance Inc, 144A | 5.375% | 9/01/25 | B | 21,580,555 | |||
54,344 | Total Chemicals | 57,271,405 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
Communications Equipment – 0.8% | ||||||||
$ 4,925 | ViaSat Inc, 144A | 5.625% | 9/15/25 | BB- | $4,826,500 | |||
7,655 | ViaSat Inc, 144A | 5.625% | 4/15/27 | BB+ | 7,875,081 | |||
12,580 | Total Communications Equipment | 12,701,581 | ||||||
Consumer Finance – 0.6% | ||||||||
9,289 | Ally Financial Inc | 5.750% | 11/20/25 | BB+ | 10,427,630 | |||
Containers & Packaging – 1.1% | ||||||||
13,199 | Sealed Air Corp, 144A | 6.875% | 7/15/33 | BB+ | 16,917,224 | |||
Diversified Telecommunication Services – 0.8% | ||||||||
5,567 | CenturyLink Inc | 7.650% | 3/15/42 | BB | 6,258,366 | |||
2,825 | Embarq Corp | 7.995% | 6/01/36 | BB | 3,344,970 | |||
3,850 | GCI LLC, 144A, (WI/DD, Settling 10/07/20) | 4.750% | 10/15/28 | B | 3,898,163 | |||
12,242 | Total Diversified Telecommunication Services | 13,501,499 | ||||||
Electric Utilities – 1.2% | ||||||||
7,400 | Edison International | 5.750% | 6/15/27 | BBB- | 8,166,757 | |||
3,875 | PG&E Corp | 5.250% | 7/01/30 | BB | 3,749,062 | |||
7,100 | Vistra Operations Co LLC, 144A | 5.000% | 7/31/27 | BB+ | 7,456,775 | |||
18,375 | Total Electric Utilities | 19,372,594 | ||||||
Electronic Equipment, Instruments & Components – 0.6% | ||||||||
8,665 | Itron Inc, 144A | 5.000% | 1/15/26 | BB- | 8,881,625 | |||
Entertainment – 0.4% | ||||||||
5,400 | Liberty Interactive LLC | 8.500% | 7/15/29 | BB | 5,818,500 | |||
Equity Real Estate Investment Trust – 1.1% | ||||||||
6,805 | Crown Castle International Corp | 3.300% | 7/01/30 | BBB+ | 7,430,446 | |||
10,400 | Office Properties Income Trust | 4.500% | 2/01/25 | BBB- | 10,520,536 | |||
17,205 | Total Equity Real Estate Investment Trust | 17,950,982 | ||||||
Food & Staples Retailing – 1.1% | ||||||||
16,314 | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 144A | 7.500% | 3/15/26 | BB- | 17,897,111 | |||
Health Care Providers & Services – 5.2% | ||||||||
18,660 | Centene Corp, 144A | 5.375% | 6/01/26 | BBB- | 19,695,070 | |||
7,000 | Centene Corp | 4.625% | 12/15/29 | BBB- | 7,550,620 | |||
10,642 | Encompass Health Corp | 5.750% | 11/01/24 | B+ | 10,657,963 | |||
1,148 | Encompass Health Corp | 5.750% | 9/15/25 | B+ | 1,182,440 | |||
2,900 | Encompass Health Corp | 4.625% | 4/01/31 | B+ | 2,900,000 | |||
5,750 | HCA Inc | 5.875% | 5/01/23 | Ba2 | 6,259,134 | |||
7,300 | HCA Inc | 5.125% | 6/15/39 | BBB- | 8,844,938 | |||
16,152 | MEDNAX Inc, 144A | 6.250% | 1/15/27 | B+ | 16,757,054 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
Health Care Providers & Services (continued) | ||||||||
$ 8,250 | Molina Healthcare Inc, 144A | 4.875% | 6/15/25 | BB- | $ 8,415,000 | |||
77,802 | Total Health Care Providers & Services | 82,262,219 | ||||||
Hotels, Restaurants & Leisure – 1.4% | ||||||||
17,725 | McDonald's Corp | 4.875% | 12/09/45 | BBB+ | 22,965,863 | |||
Household Products – 0.3% | ||||||||
3,525 | Procter & Gamble Co | 3.000% | 3/25/30 | AA- | 4,086,644 | |||
Interactive Media & Services – 0.5% | ||||||||
7,850 | TripAdvisor Inc, 144A | 7.000% | 7/15/25 | BB- | 8,183,625 | |||
IT Services – 0.5% | ||||||||
8,300 | Alliance Data Systems Corp, 144A | 4.750% | 12/15/24 | N/R | 7,779,590 | |||
Life Sciences Tools & Services – 0.8% | ||||||||
7,625 | Avantor Funding Inc, 144A | 4.625% | 7/15/28 | BB | 7,910,938 | |||
3,975 | Thermo Fisher Scientific Inc | 4.133% | 3/25/25 | BBB+ | 4,528,812 | |||
11,600 | Total Life Sciences Tools & Services | 12,439,750 | ||||||
Machinery – 3.7% | ||||||||
9,506 | ATS Automation Tooling Systems Inc, 144A | 6.500% | 6/15/23 | B+ | 9,601,060 | |||
14,525 | Dana Financing Luxembourg Sarl, 144A | 6.500% | 6/01/26 | BB+ | 15,142,312 | |||
11,020 | Harsco Corp, 144A | 5.750% | 7/31/27 | Ba2 | 11,171,525 | |||
9,555 | Stevens Holding Co Inc, 144A | 6.125% | 10/01/26 | B+ | 10,223,850 | |||
12,789 | Terex Corp, 144A | 5.625% | 2/01/25 | BB- | 12,661,110 | |||
57,395 | Total Machinery | 58,799,857 | ||||||
Media – 6.1% | ||||||||
11,371 | Altice Financing SA, 144A | 7.500% | 5/15/26 | B | 12,036,545 | |||
7,650 | CCO Holdings LLC, 144A | 5.125% | 5/01/27 | BB | 8,049,483 | |||
5,750 | Charter Communications Operating LLC / Charter Communications Operating Capital | 6.484% | 10/23/45 | BBB- | 7,664,817 | |||
7,200 | DISH DBS Corp | 6.750% | 6/01/21 | B2 | 7,380,000 | |||
7,360 | DISH DBS Corp | 7.750% | 7/01/26 | B2 | 8,091,290 | |||
14,924 | Nexstar Broadcasting Inc, 144A | 5.625% | 7/15/27 | B | 15,654,530 | |||
4,350 | Nexstar Broadcasting Inc, 144A | 4.750% | 11/01/28 | B | 4,437,000 | |||
24,804 | ViacomCBS Inc | 6.875% | 4/30/36 | BBB | 34,079,935 | |||
83,409 | Total Media | 97,393,600 | ||||||
Metals & Mining – 1.1% | ||||||||
6,600 | ArcelorMittal SA | 7.250% | 10/15/39 | BBB- | 8,349,000 | |||
6,600 | Southern Copper Corp | 5.875% | 4/23/45 | BBB+ | 8,939,482 | |||
13,200 | Total Metals & Mining | 17,288,482 | ||||||
Mortgage Real Estate Investment Trust – 1.1% | ||||||||
12,305 | HAT Holdings I LLC / HAT Holdings II LLC, 144A | 5.250% | 7/15/24 | BB+ | 12,822,671 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
Mortgage Real Estate Investment Trust (continued) | ||||||||
$ 3,850 | HAT Holdings I LLC / HAT Holdings II LLC, 144A | 6.000% | 4/15/25 | BB+ | $ 4,101,405 | |||
16,155 | Total Mortgage Real Estate Investment Trust | 16,924,076 | ||||||
Multiline Retail – 1.2% | ||||||||
6,650 | Nordstrom Inc, 144A | 8.750% | 5/15/25 | Baa2 | 7,286,907 | |||
16,319 | Nordstrom Inc | 5.000% | 1/15/44 | Baa3 | 11,555,223 | |||
22,969 | Total Multiline Retail | 18,842,130 | ||||||
Multi-Utilities – 0.5% | ||||||||
6,425 | Consolidated Edison Co of New York Inc | 3.950% | 4/01/50 | A- | 7,773,083 | |||
Oil, Gas & Consumable Fuels – 2.0% | ||||||||
4,650 | Cheniere Corpus Christi Holdings LLC | 5.125% | 6/30/27 | BBB- | 5,177,331 | |||
14,425 | Enviva Partners LP / Enviva Partners Finance Corp, 144A | 6.500% | 1/15/26 | BB- | 15,200,344 | |||
9,939 | Phillips 66 | 4.650% | 11/15/34 | A3 | 11,860,121 | |||
29,014 | Total Oil, Gas & Consumable Fuels | 32,237,796 | ||||||
Pharmaceuticals – 0.5% | ||||||||
6,975 | Bristol-Myers Squibb Co | 3.900% | 2/20/28 | A+ | 8,263,941 | |||
Real Estate Management & Development – 0.8% | ||||||||
8,306 | Greystar Real Estate Partners LLC, 144A | 5.750% | 12/01/25 | B+ | 8,368,295 | |||
5,215 | Kennedy-Wilson Inc | 5.875% | 4/01/24 | BB | 5,188,925 | |||
13,521 | Total Real Estate Management & Development | 13,557,220 | ||||||
Road & Rail – 0.7% | ||||||||
10,108 | XPO CNW Inc | 6.700% | 5/01/34 | B+ | 10,771,135 | |||
Semiconductors & Semiconductor Equipment – 4.7% | ||||||||
17,998 | Amkor Technology Inc, 144A | 6.625% | 9/15/27 | BB | 19,309,514 | |||
7,050 | Broadcom Corp / Broadcom Cayman Finance Ltd | 3.875% | 1/15/27 | BBB- | 7,817,486 | |||
16,870 | Broadcom Inc | 4.750% | 4/15/29 | BBB- | 19,591,985 | |||
7,250 | Entegris Inc, 144A | 4.375% | 4/15/28 | BB | 7,449,375 | |||
8,450 | Lam Research Corp | 4.875% | 3/15/49 | A- | 11,934,238 | |||
7,925 | Qorvo Inc | 5.500% | 7/15/26 | BB+ | 8,404,938 | |||
65,543 | Total Semiconductors & Semiconductor Equipment | 74,507,536 | ||||||
Software – 1.3% | ||||||||
1,250 | SS&C Technologies Inc, 144A | 5.500% | 9/30/27 | B+ | 1,328,400 | |||
16,900 | VMware Inc | 4.700% | 5/15/30 | Baa2 | 19,993,721 | |||
18,150 | Total Software | 21,322,121 | ||||||
Specialty Retail – 0.8% | ||||||||
13,731 | L Brands Inc | 6.875% | 11/01/35 | B+ | 13,529,223 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
Technology Hardware, Storage & Peripherals – 5.3% | ||||||||
$ 10,170 | Dell International LLC / EMC Corp, 144A | 6.020% | 6/15/26 | BBB- | $11,944,240 | |||
10,662 | GCI LLC | 6.875% | 4/15/25 | B | 10,991,456 | |||
30,944 | Hewlett Packard Enterprise Co | 6.350% | 10/15/45 | BBB+ | 39,314,431 | |||
9,529 | Seagate HDD Cayman | 4.875% | 6/01/27 | Baa3 | 10,669,460 | |||
10,335 | Seagate HDD Cayman, 144A | 4.091% | 6/01/29 | Baa3 | 11,170,217 | |||
71,640 | Total Technology Hardware, Storage & Peripherals | 84,089,804 | ||||||
Tobacco – 1.0% | ||||||||
12,625 | Altria Group Inc | 5.800% | 2/14/39 | A3 | 16,107,836 | |||
Trading Companies & Distributors – 1.3% | ||||||||
12,600 | Ashtead Capital Inc, 144A | 4.000% | 5/01/28 | BBB- | 13,072,500 | |||
4,875 | United Rentals North America Inc | 5.250% | 1/15/30 | BB- | 5,319,844 | |||
1,775 | United Rentals North America Inc | 3.875% | 2/15/31 | BB- | 1,801,625 | |||
19,250 | Total Trading Companies & Distributors | 20,193,969 | ||||||
$ 848,392 | Total Corporate Bonds (cost $881,835,172) | 934,869,835 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 13.2% | ||||||||
Automobiles – 0.5% | ||||||||
$ 7,850 | General Motors Financial Co Inc | 6.500% | N/A (4) | BB+ | $ 7,803,693 | |||
Banks – 6.6% | ||||||||
4,815 | Bank of America Corp | 6.300% | N/A (4) | BBB | 5,441,432 | |||
14,726 | Bank of America Corp | 6.500% | N/A (4) | BBB | 16,367,949 | |||
7,725 | CIT Group Inc | 5.800% | N/A (4) | Ba3 | 6,211,363 | |||
25,871 | Citigroup Inc | 6.250% | N/A (4) | BBB- | 28,734,920 | |||
17,075 | JPMorgan Chase & Co | 6.750% | N/A (4) | BBB+ | 18,483,687 | |||
3,225 | Lloyds Bank PLC, 144A | 12.000% | N/A (4) | Baa3 | 3,684,563 | |||
14,377 | PNC Financial Services Group Inc | 6.750% | N/A (4) | Baa2 | 14,740,732 | |||
5,925 | Wells Fargo & Co | 5.875% | N/A (4) | Baa2 | 6,383,595 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
Banks (continued) | ||||||||
$ 4,883 | Zions Bancorp NA | 7.200% | N/A (4) | BB+ | $ 5,032,029 | |||
Total Banks | 105,080,270 | |||||||
Capital Markets – 0.5% | ||||||||
7,075 | Goldman Sachs Group Inc | 5.300% | N/A (4) | BBB- | 7,507,633 | |||
Consumer Finance – 0.4% | ||||||||
6,460 | Capital One Financial Corp, (3-Month LIBOR reference rate + 3.800% spread), (5) | 4.046% | N/A (4) | Baa3 | 5,710,188 | |||
Electric Utilities – 2.6% | ||||||||
21,195 | Emera Inc | 6.750% | 6/15/76 | BB+ | 23,526,450 | |||
15,390 | NextEra Energy Capital Holdings Inc | 5.650% | 5/01/79 | BBB | 17,439,507 | |||
Total Electric Utilities | 40,965,957 | |||||||
Food Products – 0.5% | ||||||||
3,200 | Land O' Lakes Inc, 144A | 7.000% | N/A (4) | BB | 2,776,000 | |||
3,300 | Land O' Lakes Inc, 144A | 7.250% | N/A (4) | BB | 3,060,750 | |||
2,042 | Land O' Lakes Inc, 144A | 8.000% | N/A (4) | BB | 1,970,530 | |||
Total Food Products | 7,807,280 | |||||||
Insurance – 0.9% | ||||||||
2,100 | Enstar Finance LLC | 5.750% | 9/01/40 | BB+ | 2,138,384 | |||
10,255 | Liberty Mutual Group Inc, 144A | 7.800% | 3/15/37 | Baa3 | 12,457,683 | |||
Total Insurance | 14,596,067 | |||||||
Multi-Utilities – 0.4% | ||||||||
7,046 | Sempra Energy | 4.875% | N/A (4) | BBB- | 7,239,765 | |||
Oil, Gas & Consumable Fuels – 0.8% | ||||||||
12,156 | Transcanada Trust | 5.875% | 8/15/76 | BBB | 12,946,140 | |||
Total $1,000 Par (or similar) Institutional Preferred (cost $207,011,777) | 209,656,993 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||
CONVERTIBLE PREFERRED SECURITIES – 8.2% | ||||||||
Banks – 1.9% | ||||||||
5,870 | Bank of America Corp | 7.250% | BBB | $8,734,560 | ||||
15,930 | Wells Fargo & Co | 7.500% | Baa2 | 21,378,856 | ||||
Total Banks | 30,113,416 | |||||||
Electric Utilities – 2.1% | ||||||||
306,900 | NextEra Energy Inc | 4.872% | A- | 16,621,704 | ||||
108,300 | NextEra Energy Inc | 6.219% | BBB | 5,171,325 | ||||
260,000 | Southern Co | 6.750% | BBB | 12,100,400 | ||||
Total Electric Utilities | 33,893,429 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||
Health Care Technology – 0.6% | ||||||||
163,250 | Change Healthcare Inc | 6.000% | N/R | $ 8,720,815 | ||||
Life Sciences Tools & Services – 1.1% | ||||||||
241,750 | Avantor Inc | 6.250% | N/R | 17,584,895 | ||||
Multi-Utilities – 1.7% | ||||||||
310,800 | CenterPoint Energy Inc | 7.000% | N/R | 11,325,552 | ||||
163,300 | Sempra Energy | 6.750% | N/R | 16,005,033 | ||||
Total Multi-Utilities | 27,330,585 | |||||||
Semiconductors & Semiconductor Equipment – 0.8% | ||||||||
10,550 | Broadcom Inc | 8.000% | N/R | 13,153,213 | ||||
Total Convertible Preferred Securities (cost $136,009,215) | 130,796,353 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 6.9% | ||||||||
Banks – 0.7% | ||||||||
127,954 | Citigroup Inc | 7.125% | BBB- | $3,596,787 | ||||
272,390 | Huntington Bancshares Inc/OH | 6.250% | Baa3 | 6,886,019 | ||||
Total Banks | 10,482,806 | |||||||
Capital Markets – 0.3% | ||||||||
191,181 | Morgan Stanley | 7.125% | BBB- | 5,276,596 | ||||
Consumer Finance – 1.3% | ||||||||
310,900 | Capital One Financial Corp, (3) | 5.000% | Baa3 | 7,797,372 | ||||
422,089 | GMAC Capital Trust I | 6.065% | BB- | 10,539,563 | ||||
106,000 | Synchrony Financial | 5.625% | BB- | 2,609,720 | ||||
Total Consumer Finance | 20,946,655 | |||||||
Equity Real Estate Investment Trust – 0.6% | ||||||||
126,328 | Digital Realty Trust Inc | 6.625% | Baa3 | 3,273,158 | ||||
156,375 | National Storage Affiliates Trust | 6.000% | N/R | 4,142,374 | ||||
92,154 | VEREIT Inc | 6.700% | BB+ | 2,334,261 | ||||
Total Equity Real Estate Investment Trust | 9,749,793 | |||||||
Food Products – 1.1% | ||||||||
63,115 | CHS Inc | 7.875% | N/R | 1,753,966 | ||||
195,213 | CHS Inc | 7.100% | N/R | 5,202,426 | ||||
384,432 | CHS Inc | 6.750% | N/R | 10,091,340 | ||||
Total Food Products | 17,047,732 | |||||||
Insurance – 1.6% | ||||||||
60,674 | Argo Group US Inc | 6.500% | BBB- | 1,553,861 | ||||
326,496 | Athene Holding Ltd | 6.350% | BBB- | 8,766,418 | ||||
174,775 | Athene Holding Ltd | 6.375% | BBB- | 4,736,402 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||
Insurance (continued) | ||||||||
294,032 | Enstar Group Ltd | 7.000% | BB+ | $7,724,221 | ||||
110,414 | National General Holdings Corp | 7.625% | N/R | 2,802,307 | ||||
Total Insurance | 25,583,209 | |||||||
Multi-Utilities – 0.7% | ||||||||
430,660 | Algonquin Power & Utilities Corp | 6.200% | BB+ | 11,993,881 | ||||
Wireless Telecommunication Services – 0.6% | ||||||||
365,936 | United States Cellular Corp, (3) | 7.250% | Ba1 | 9,514,336 | ||||
Total $25 Par (or similar) Retail Preferred (cost $104,013,336) | 110,595,008 |
Shares | Description (1) | Value | ||||||
COMMON STOCKS – 5.6% | ||||||||
Aerospace & Defense – 0.4% | ||||||||
409,600 | Thales SA, Sponsored ADR, (6) | $ 6,163,415 | ||||||
Capital Markets – 0.3% | ||||||||
276,484 | Ares Capital Corp | 3,856,952 | ||||||
Communications Equipment – 0.4% | ||||||||
169,300 | Cisco Systems Inc | 6,668,727 | ||||||
Electric Utilities – 1.3% | ||||||||
84,300 | Entergy Corp | 8,306,079 | ||||||
140,167 | NextEra Energy Partners LP | 8,404,413 | ||||||
215,682 | Vistra Energy Corp | 4,067,763 | ||||||
Total Electric Utilities | 20,778,255 | |||||||
Equity Real Estate Investment Trust – 0.4% | ||||||||
67,256 | Apartment Investment and Management Co, Class A | 2,267,872 | ||||||
139,200 | Healthcare Realty Trust Inc | 4,192,704 | ||||||
Total Equity Real Estate Investment Trust | 6,460,576 | |||||||
Industrial Conglomerates – 0.2% | ||||||||
39,025 | Siemens AG, ADR, (6) | 2,718,091 | ||||||
Pharmaceuticals – 2.6% | ||||||||
194,500 | AstraZeneca PLC, Sponsored ADR | 10,658,600 | ||||||
253,900 | Bristol-Myers Squibb Co | 15,307,631 | ||||||
422,800 | GlaxoSmithKline PLC, Sponsored ADR | 15,914,192 | ||||||
Total Pharmaceuticals | 41,880,423 | |||||||
Total Common Stocks (cost $84,512,211) | 88,526,439 |
Shares | Description (1) | Coupon | Issue Price | Cap Price | Maturity | Value | ||
STRUCTURED NOTES – 1.4% | ||||||||
82,901 | Citigroup Global Markets Holdings Inc., Mandatory Exchangeable Note, Linked to Common Stock of VMWare Inc. (Cap 116.24% of Issue Price), 144A , (6) | 10.000% | $144.1064 | $167.5093 | 1/22/21 | $11,919,643 | ||
180,035 | Merrill Lynch International & Co. C.V., Mandatory Exchangeable Note, Linked to Common Stock of Raytheon Technologies Corp. (Cap 116.60% of Issue Price) , (6) | 12.000% | $64.3076 | $74.9827 | 2/12/21 | 10,775,414 | ||
Total Structured Notes (cost $23,524,184) | 22,695,057 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||
CONVERTIBLE BONDS – 1.2% | ||||||||
Media – 0.8% | ||||||||
$ 17,807 | Liberty Interactive LLC | 4.000% | 11/15/29 | BB | $ 13,176,894 | |||
Wireless Telecommunication Services – 0.4% | ||||||||
8,874 | Liberty Interactive LLC | 3.750% | 2/15/30 | BB | 6,566,799 | |||
$ 26,681 | Total Convertible Bonds (cost $19,388,311) | 19,743,693 | ||||||
Total Long-Term Investments (cost $1,456,294,206) | 1,516,883,378 |
Shares | Description (1) | Coupon | Value | |||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.4% | ||||||
Money Market Funds – 0.4% | ||||||
6,606,055 | State Street Navigator Securities Lending Government Money Market Portfolio, (7) | 0.090% (8) | $ 6,606,055 | |||
Total Investments Purchased with Collateral from Securities Lending (cost $6,606,055) | 6,606,055 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||||
SHORT-TERM INVESTMENTS – 3.5% | ||||||||
REPURCHASE AGREEMENTS – 3.5% | ||||||||
$ 55,736 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/20, repurchase price $55,735,574, collateralized $57,109,100 U.S. Treasury Notes, 0.375%, due 9/30/27, value $56,850,339 | 0.000% | 10/01/20 | $ 55,735,574 | ||||
Total Short-Term Investments (cost $55,735,574) | 55,735,574 | |||||||
Total Investments (cost $1,518,635,835) – 99.1% | 1,579,225,007 | |||||||
Other Assets Less Liabilities – 0.9% | 14,776,796 | |||||||
Net Assets – 100% | $1,594,001,803 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Ratings are not covered by the report of independent registered public accounting firm. | |
(3) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $6,302,333. | |
(4) | Perpetual security. Maturity date is not applicable. | |
(5) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. | |
(6) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 - Investment Valuation and Fair Value Measurements for more information. | |
(7) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4- Portfolio Securities and Investments in Derivatives for more information. | |
(8) | The rate shown is the one-day yield as of the end of the reporting period. | |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. | |
ADR | American Depositary Receipt | |
LIBOR | London Inter-Bank Offered Rate | |
N/A | Not Applicable. | |
WI/DD | Purchased on a when-issued or delayed delivery basis. |
Assets | |
Long-term investments, at value (cost $1,456,294,206)(1) | $1,516,883,378 |
Investment purchased with collateral from securities lending, at value (cost approximates value) | 6,606,055 |
Short-term investments, at value (cost approximates value) | 55,735,574 |
Receivable for: | |
Dividends | 919,471 |
Interest | 18,657,596 |
Investments sold | 17,241,263 |
Reclaims | 65,872 |
Shares sold | 5,693,560 |
Other assets | 96,225 |
Total assets | 1,621,898,994 |
Liabilities | |
Payable for: | |
Collateral from securities lending program | 6,606,055 |
Dividends | 38,757 |
Investments purchased - regular settlement | 5,835,532 |
Investments purchased - when-issued/delayed-delivery settlement | 3,850,000 |
Shares redeemed | 9,633,142 |
Accrued expenses: | |
Management fees | 782,369 |
Trustees fees | 44,570 |
12b-1 distribution and service fees | 271,091 |
Other | 835,675 |
Total liabilities | 27,897,191 |
Net assets | $1,594,001,803 |
Class A Shares | |
Net assets | $ 264,864,860 |
Shares outstanding | 12,401,906 |
Net asset value ("NAV") per share | $ 21.36 |
Offering price per share (NAV per share plus maximum sales charge of 4.75% of offering price) | $ 22.43 |
Class C Shares | |
Net assets | $ 262,068,424 |
Shares outstanding | 12,297,429 |
NAV and offering price per share | $ 21.31 |
Class R6 Shares | |
Net assets | $ 6,682,124 |
Shares outstanding | 310,802 |
NAV and offering price per share | $ 21.50 |
Class I Shares | |
Net assets | $1,060,386,395 |
Shares outstanding | 49,593,293 |
NAV and offering price per share | $ 21.38 |
Fund level net assets consist of: | |
Capital paid-in | $1,637,452,347 |
Total distributable earnings | (43,450,544) |
Fund level net assets | $1,594,001,803 |
Authorized shares - per class | Unlimited |
Par value per share | $ 0.01 |
(1) | Includes securities loaned of $6,302,333 |
Investment Income | |
Dividends | $ 19,974,567 |
Interest | 57,705,071 |
Securities lending income | 1,835 |
Tax withheld | (39,090) |
Total investment income | 77,642,383 |
Expenses | |
Management fees | 10,275,658 |
12b-1 service fees - Class A Shares | 619,486 |
12b-1 distribution and service fees - Class C Shares | 2,492,724 |
Shareholder servicing agent fees | 1,105,906 |
Custodian fees | 158,385 |
Professional fees | 95,517 |
Trustees fees | 42,685 |
Shareholder reporting expenses | 167,524 |
Federal and state registration fees | 198,176 |
Other | 20,645 |
Total expenses before fee waiver/expense reimbursement | 15,176,706 |
Fee waiver/expense reimbursement | (1,270,019) |
Net expenses | 13,906,687 |
Net investment income (loss) | 63,735,696 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (52,553,831) |
Options written | 301,006 |
Change in net unrealized appreciation (depreciation) of investments | 2,703,606 |
Net realized and unrealized gain (loss) | (49,549,219) |
Net increase (decrease) in net assets from operations | $ 14,186,477 |
Year Ended 9/30/20 | Year Ended 9/30/19 | |
Operations | ||
Net investment income (loss) | $ 63,735,696 | $ 55,251,751 |
Net realized gain (loss) from: | ||
Investments | (52,553,831) | (14,555,147) |
Options written | 301,006 | 538,316 |
Change in net unrealized appreciation (depreciation) of: | ||
Investments | 2,703,606 | 61,010,111 |
Options written | — | 6,427 |
Net increase (decrease) in net assets from operations | 14,186,477 | 102,251,458 |
Distributions to Shareholders | ||
Dividends: | ||
Class A Shares | (13,760,149) | (10,179,363) |
Class C Shares | (11,985,677) | (9,082,564) |
Class R6 Shares | (353,971) | (26,189) |
Class I Shares | (59,414,084) | (42,532,751) |
Decrease in net assets from distributions to shareholders | (85,513,881) | (61,820,867) |
Fund Share Transactions | ||
Proceeds from sale of shares | 770,135,346 | 724,002,966 |
Proceeds from shares issued to shareholders due to reinvestment of distributions | 85,141,825 | 61,544,787 |
855,277,171 | 785,547,753 | |
Cost of shares redeemed | (596,857,685) | (410,023,300) |
Net increase (decrease) in net assets from Fund share transactions | 258,419,486 | 375,524,453 |
Net increase (decrease) in net assets | 187,092,082 | 415,955,044 |
Net assets at the beginning of period | 1,406,909,721 | 990,954,677 |
Net assets at the end of period | $1,594,001,803 | $1,406,909,721 |
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | ||||||||
Class (Commencement Date) Year Ended September 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | |
Class A (12/09) | |||||||||
2020 | $22.06 | $0.88 | $(0.39) | $0.49 | $(1.19) | $ — | $(1.19) | $21.36 | |
2019 | 21.44 | 1.02 | 0.76 | 1.78 | (1.16) | — | (1.16) | 22.06 | |
2018 | 22.13 | 1.01 | (0.52) | 0.49 | (1.18) | — | (1.18) | 21.44 | |
2017 | 21.81 | 1.11 | 0.33 | 1.44 | (1.12) | — | (1.12) | 22.13 | |
2016 | 20.47 | 1.10 | 1.36 | 2.46 | (1.12) | — | (1.12) | 21.81 | |
Class C (12/09) | |||||||||
2020 | 22.01 | 0.72 | (0.39) | 0.33 | (1.03) | — | (1.03) | 21.31 | |
2019 | 21.40 | 0.86 | 0.75 | 1.61 | (1.00) | — | (1.00) | 22.01 | |
2018 | 22.08 | 0.85 | (0.52) | 0.33 | (1.01) | — | (1.01) | 21.40 | |
2017 | 21.77 | 0.95 | 0.32 | 1.27 | (0.96) | — | (0.96) | 22.08 | |
2016 | 20.43 | 0.94 | 1.37 | 2.31 | (0.97) | — | (0.97) | 21.77 | |
Class R6 (06/16) | |||||||||
2020 | 22.20 | 0.96 | (0.40) | 0.56 | (1.26) | — | (1.26) | 21.50 | |
2019 | 21.57 | 1.11 | 0.74 | 1.85 | (1.22) | — | (1.22) | 22.20 | |
2018 | 22.19 | 1.13 | (0.51) | 0.62 | (1.24) | — | (1.24) | 21.57 | |
2017 | 21.88 | 1.21 | 0.26 | 1.47 | (1.16) | — | (1.16) | 22.19 | |
2016(e) | 21.12 | 0.34 | 0.68 | 1.02 | (0.26) | — | (0.26) | 21.88 | |
Class I (12/09) | |||||||||
2020 | 22.08 | 0.93 | (0.39) | 0.54 | (1.24) | — | (1.24) | 21.38 | |
2019 | 21.47 | 1.08 | 0.74 | 1.82 | (1.21) | — | (1.21) | 22.08 | |
2018 | 22.16 | 1.07 | (0.53) | 0.54 | (1.23) | — | (1.23) | 21.47 | |
2017 | 21.84 | 1.17 | 0.33 | 1.50 | (1.18) | — | (1.18) | 22.16 | |
2016 | 20.49 | 1.15 | 1.38 | 2.53 | (1.18) | — | (1.18) | 21.84 |
Ratios/Supplemental Data | |||||||
Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | ||||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) | |
2.35% | $ 264,865 | 1.04% | 4.04% | 0.96% | 4.13% | 38% | |
8.69 | 221,484 | 1.06 | 4.75 | 0.96 | 4.85 | 24 | |
2.27 | 176,014 | 1.08 | 4.54 | 0.96 | 4.66 | 29 | |
6.77 | 125,547 | 1.12 | 4.95 | 0.96 | 5.11 | 24 | |
12.44 | 97,079 | 1.19 | 5.05 | 0.96 | 5.28 | 37 | |
1.59 | 262,068 | 1.79 | 3.29 | 1.71 | 3.38 | 38 | |
7.85 | 223,364 | 1.81 | 4.00 | 1.71 | 4.10 | 24 | |
1.49 | 182,049 | 1.83 | 3.80 | 1.71 | 3.91 | 29 | |
6.04 | 128,801 | 1.87 | 4.22 | 1.71 | 4.37 | 24 | |
11.58 | 65,833 | 1.93 | 4.29 | 1.71 | 4.51 | 37 | |
2.69 | 6,682 | 0.72 | 4.38 | 0.64 | 4.46 | 38 | |
9.03 | 649 | 0.74 | 5.12 | 0.64 | 5.22 | 24 | |
2.86 | 272 | 0.75 | 5.01 | 0.64 | 5.12 | 29 | |
6.95 | 43 | 0.80 | 5.35 | 0.63 | 5.51 | 24 | |
4.83 | 326 | 0.96* | 7.40* | 0.63* | 7.74* | 37 | |
2.60 | 1,060,386 | 0.79 | 4.29 | 0.71 | 4.38 | 38 | |
8.91 | 961,413 | 0.80 | 4.99 | 0.71 | 5.09 | 24 | |
2.53 | 632,596 | 0.83 | 4.81 | 0.71 | 4.92 | 29 | |
7.05 | 413,189 | 0.86 | 5.24 | 0.71 | 5.40 | 24 | |
12.77 | 145,450 | 0.94 | 5.29 | 0.71 | 5.52 | 37 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | After fee waiver and/or expense reimbursement from the Adviser, when applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period. |
(e) | For the period June 30, 2016 (commencement of operations) through September 30, 2016. |
* | Annualized. |
Level 1 | Level 2 | Level 3 | Total | |
Long-Term Investments*: | ||||
Corporate Bonds | $ — | $ 934,869,835 | $ — | $ 934,869,835 |
$1,000 Par (or similar) Institutional Preferred | — | 209,656,993 | — | 209,656,993 |
Convertible Preferred Securities | 130,796,353 | — | — | 130,796,353 |
$25 Par (or similar) Retail Preferred | 110,595,008 | — | — | 110,595,008 |
Common Stocks | 79,644,933 | 8,881,506** | — | 88,526,439 |
Structured Notes | — | 22,695,057 | — | 22,695,057 |
Convertible Bonds | — | 19,743,693 | — | 19,743,693 |
Investments Purchased with Collateral from Securities Lending | 6,606,055 | — | — | 6,606,055 |
Short-Term Investments: | ||||
Repurchase Agreements | — | 55,735,574 | — | 55,735,574 |
Total | $327,642,349 | $1,251,582,658 | $ — | $1,579,225,007 |
* | Refer to the Fund's Portfolio of Investments for industry classifications. |
** | Refer to the Fund's Portfolio of Investments for securities classified as Level 2. |
Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure |
Fixed Income Clearing Corporation | $55,735,574 | $(55,735,574) | $ — |
Asset Class out on Loan | Long-Term Investments, at Value | Total Collateral Received |
Corporate Bonds | $6,204,429 | $6,504,605 |
$25 Par (or similar) Retail Preferred | $ 97,904 | $ 101,450 |
$6,302,333 | $6,606,055 |
Average notional amount of outstanding options written* | $ — |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. The Fund wrote call options during the current fiscal period. However the Fund did not have any such positions outstanding at the beginning of the fiscal period or at the end of each fiscal quarter within the current fiscal period and therefore are not included as part of this calculation. |
Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Options Written | Change in Net Unrealized Appreciation (Depreciation) of Options Written | |
Equity price | Options written | $301,006 | $- |
Year Ended 9/30/20 | Year Ended 9/30/19 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold: | |||||
Class A | 5,469,009 | $ 118,261,432 | 4,812,688 | $ 101,645,191 | |
Class A – automatic conversion of Class C Shares | — | — | 3,720 | 79,015 | |
Class C | 4,052,604 | 87,617,607 | 3,605,301 | 76,116,627 | |
Class R6 | 605,008 | 13,311,022 | 26,986 | 574,292 | |
Class I | 25,654,804 | 550,945,285 | 25,854,339 | 545,587,841 | |
Class T | — | — | — | — | |
Shares issued to shareholders due to reinvestment of distributions: | |||||
Class A | 637,377 | 13,618,018 | 480,879 | 10,120,031 | |
Class C | 559,344 | 11,925,868 | 428,706 | 8,998,297 | |
Class R6 | 14,871 | 322,014 | 1,168 | 24,740 | |
Class I | 2,771,662 | 59,275,925 | 2,008,445 | 42,401,719 | |
Class T | — | — | — | — | |
39,764,679 | 855,277,171 | 37,222,232 | 785,547,753 | ||
Shares redeemed: | |||||
Class A | (3,744,898) | (78,677,896) | (3,465,316) | (72,031,005) | |
Class C | (2,460,839) | (51,681,376) | (2,390,708) | (50,194,740) | |
Class C – automatic conversion to Class A Shares | — | — | (3,728) | (79,015) | |
Class R6 | (338,319) | (7,374,455) | (11,500) | (240,488) | |
Class I | (22,369,613) | (459,123,958) | (13,796,296) | (287,454,855) | |
Class T | — | — | (1,134) | (23,197) | |
(28,913,669) | (596,857,685) | (19,668,682) | (410,023,300) | ||
Net increase (decrease) | 10,851,010 | $ 258,419,486 | 17,553,550 | $ 375,524,453 |
Tax cost of investments | $1,551,020,824 |
Gross unrealized: | |
Appreciation | $ 79,711,220 |
Depreciation | (51,507,037) |
Net unrealized appreciation (depreciation) of investments | $ 28,204,183 |
Undistributed net ordinary income1, 2 | $6,536,516 |
Undistributed net long-term capital gains | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividends declared during the period September 1, 2020 through September 30, 2020 and paid October 1, 2020. |
2 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
2020 | |
Distributions from net ordinary income2 | $85,513,881 |
Distributions from net long-term capital gains | — |
2019 | |
Distributions from net ordinary income2 | $60,226,966 |
Distributions from net long-term capital gains | — |
2 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Not subject to expiration: | |
Short-term | $36,449,003 |
Long-term | 35,908,592 |
Total | $72,357,595 |
Average Daily Net Assets | Fund-Level Fee Rate |
For the first $125 million | 0.5500% |
For the next $125 million | 0.5375 |
Average Daily Net Assets | Fund-Level Fee Rate |
For the next $250 million | 0.5250 |
For the next $500 million | 0.5125 |
For the next $1 billion | 0.5000 |
For the next $3 billion | 0.4750 |
For the next $5 billion | 0.4500 |
For net assets over $10 billion | 0.4375 |
Complex-Level Eligible Asset Breakpoint Level* | Effective Complex-Level Fee Rate at Breakpoint Level |
$55 billion | 0.2000% |
$56 billion | 0.1996 |
$57 billion | 0.1989 |
$60 billion | 0.1961 |
$63 billion | 0.1931 |
$66 billion | 0.1900 |
$71 billion | 0.1851 |
$76 billion | 0.1806 |
$80 billion | 0.1773 |
$91 billion | 0.1691 |
$125 billion | 0.1599 |
$200 billion | 0.1505 |
$250 billion | 0.1469 |
$300 billion | 0.1445 |
Sales charges collected (Unaudited) | $1,374,698 |
Paid to financial intermediaries (Unaudited) | 1,240,771 |
Commission advances (Unaudited) | $1,064,484 |
12b-1 fees retained (Unaudited) | $804,333 |
CDSC retained (Unaudited) | $67,887 |
% of QDI | 24.0% | |
% of DRD | 21.6% |
% of Interest-Related Dividends for the period October 1, 2019 through December 31, 2019 | 59.4% | |
% of Interest-Related Dividends for the period January 1, 2020 through September 30, 2020 | 54.4% |
• | Fund Improvements and Product Management Initiatives – continuing to proactively manage the Nuveen fund complex as a whole and at the individual fund level with an aim to enhance the shareholder outcomes through, among other things, rationalizing the product line and gaining efficiencies through mergers, repositionings and liquidations; launching new share classes; reviewing and updating investment policies and benchmarks; closing funds to new investments; rebranding the exchange-traded fund (“ETF”) product line; and integrating certain investment teams and changing the portfolio managers serving various funds; |
• | Capital Initiatives – continuing to invest capital to support new Nuveen funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds; |
• | Liquidity Management – implementing the liquidity risk management program which was designed to assess and manage the liquidity risk of the Nuveen funds. The Board noted that this program was particularly helpful in addressing the high volatility and liquidity challenges that arose in the market, particularly for the high yield municipal sector, during the first half of 2020; |
• | Compliance Program Initiatives – continuing efforts to mitigate compliance risk, increase operating efficiencies, strengthen key compliance program elements and support international business growth and other objectives through, among other things, integrating various investment teams across affiliates, consolidating marketing review functions, enhancing compliance related technologies and establishing and maintaining shared broad-based compliance policies throughout the organization and its affiliates; |
• | Risk Management and Valuation Services – continuing efforts to provide Nuveen with a more disciplined and consistent approach to identifying and mitigating the firm’s operational risks through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates and adopting a risk operational framework across the complex; |
• | Regulatory Matters – continuing efforts to monitor regulatory trends and advocate on behalf of the Nuveen funds, to implement and comply with new or revised rules and mandates and to respond to regulatory inquiries and exams; |
• | Government Relations – continuing efforts of various Nuveen teams and affiliates to develop policy positions on a broad range of issues that may impact the Nuveen funds, advocate and communicate these positions to lawmakers and other regulatory authorities and work with trade associations to ensure these positions are represented; |
• | Business Continuity, Disaster Recovery and Information Services – continuing to periodically test business continuity and disaster recovery plans, maintain an information security program designed to identify and manage information security risks, and provide reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, potential impact of new or revised laws and regulations, incident tracking and other relevant information technology risk-related reports; and |
• | Expanded Dividend Management Services – continuing to manage the dividends among the varying types of Nuveen funds within the Nuveen complex to be consistent with the respective fund’s product design and investing resources to develop systems to assist in the process for newer products such as target term funds and ETFs. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
Independent Trustees: | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Trustee | 2008 | Formerly, a Co-Founding Partner, Promus Capital (2008-2017); Director, Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; formerly, Director, Fulcrum IT Services LLC (2010-2019); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003- 2007) and Northern Trust Hong Kong Board (1997-2004). | 152 |
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine Foundation, a private philanthropic corporation; Director and Chairman, United Fire Group, a publicly held company; Director, Public member, American Board of Orthopaedic Surgery (since 2015); Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy and The Gazette Company; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2003 | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director of Wellmark, Inc. (since 2009); past Director (2005-2015), and past President (2010- 2014) Beta Gamma Sigma, Inc., The International Business Honor Society; formerly, Director (2004-2018) of Xerox Corporation; Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 152 |
Albin F. Moschner 1952 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions; formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions (1991-1996) and Chief Executive Officer (1995-1996) of Zenith Electronics Corporation. | 152 |
John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Member of Board of Directors of Core12 LLC. (since 2008), a private firm which develops branding, marketing and communications strategies for clients; served The President's Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007. | 152 |
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since 2013); formerly, Board Member, U.S. Endowment for Forestry and Communities (2013-2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 152 |
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Former Director, Chicago Board Options Exchange (2006-2017), and C2 Options Exchange, Incorporated (2009-2017); former Director, Cboe Global Markets, Inc., formerly, CBOE Holdings, Inc. (2010-May 2020); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
Matthew Thronton III 1958 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2020 | Formerly, Executive Vice President and Cheif Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation ("FedEx") (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly Member of the Board of Directors (2012-2018), Safe Kids Worldwide® (a non-profit organization dedicated to preventing childhood injuries). Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Director (since November 2020), Crown Castle International Corp. (owns, operates and leases cell towers and fiber routes supporting small cells and fiber solutions). | 152 |
Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | 152 |
Robert L. Young 1963 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2017 | Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (formerly, One Group Dealer Services, Inc.) (1999-2017). | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
Officers of the Funds: | ||||
Christopher E. Stickrod 1976 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 2020 | Senior Managing Director (since 2017) and Head of Advisory Product (since 2020), formerly, Managing Director (2016-2017) and Senior Vice President (2013-2016) of Nuveen, LLC; Senior Managing Director of Nuveen Securities, LLC (since 2018) and of Nuveen Fund Advisors, LLC (since 2019). | |
Mark J. Czarniecki 1979 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Secretary | 2013 | Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2016) and Nuveen Fund Advisors (since 2017); Vice President and Associate General Counsel of Nuveen (since 2013) and Vice President, Assistant Secretary and Associate General Counsel of Nuveen Asset Management (since 2018). | |
Diana R. Gonzalez 1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2017 | Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice President and Associate General Counsel of Nuveen (since 2017); Associate General Counsel of Jackson National Asset Management (2012-2017). | |
Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2016 | Managing Director (since 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011- 2016) of Nuveen; Managing Director (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | |
Brian J. Lockhart 1974 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2019 | Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Vice President (2010-2017) of Nuveen; Head of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); Chartered Financial Analyst and Certified Financial Risk Manager. | |
Jacques M. Longerstaey 1963 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since May 2019); Senior Managing Director (since May 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (from 2013-2019). | |
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2007 | Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen Investments, Inc., formerly, Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly Executive Vice President (2016-2017) and Managing Director (2008-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC, formerly, Executive Vice President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC, formerly Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2011-2016); Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC, formerly Executive Vice President (2016-2017); Vice President (since 2007) and Secretary (since 2016), formerly, Assistant Secretary, of NWQ Investment Management Company, LLC, Symphony Asset Management, LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010). Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative Investments, LLC. | |
Jon Scott Meissner 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen (since 2017); Managing Director of Nuveen Fund Advisors, LLC (since 2019); Senior Director of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since 2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004. | |
Deann D. Morgan 1969 100 Park Avenue New York, NY 10016 | Vice President | 2020 | President, Nuveen Fund Advisors, LLC (since November 2020); Executive Vice President, Global Head of Product at Nuveen (since 2019); Co-Chief Executive Officer of Nuveen Securities, LLC (since March 2020); Managing Member MDR Collaboratory LLC (since 2018); Managing Director, Head of Wealth Management Product Structuring & COO Multi Asset Investing. The Blackstone Group (2013-2017). | |
Christopher M. Rohrbacher 1971 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Managing Director (since 2017) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2017), formerly, Senior Vice President (2016-2017), General Counsel (since 2020), formerly, Co-General Counsel (2019-2020) and Assistant Secretary (since 2016) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Senior Vice President (2012-2017) and Associate General Counsel (since 2016), formerly, Assistant General Counsel (2008-2016) of Nuveen. | |
William A. Siffermann 1975 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2017 | Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President (2011-2016) of Nuveen. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
E. Scott Wickerham 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President and Controller | 2019 | Senior Managing Director, Head of Fund Administration at Nuveen, LLC (since 2019), formerly, Managing Director; Senior Managing Director (since 2019), Nuveen Fund Advisors, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the Treasurer (since 2017) to the CREF Accounts; Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions with TIAA since 2006. | |
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Chief Compliance Officer | 1988 | Managing Director (2002-2020) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (2002-2020), Assistant Secretary (1997-2020) and Co-General Counsel (2011-2020) of Nuveen Fund Advisors, LLC; Managing Director (2004-2020) and Assistant Secretary (1994-2020) of Nuveen Investments, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (2011-2020); Vice President (2017-2020) Managing Director (2003-2017) and Assistant Secretary (2003-2020) of Symphony Asset Management LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC (2006-2020) and of Winslow Capital Management, LLC (2010-2020); Chartered Financial Analyst. |
Serving Investors for Generations
Income Fund
Fund Name | Class A | Class C | Class R3 | Class R6 | Class I |
Nuveen Preferred Securities and Income Fund | NPSAX | NPSCX | NPSTX | NPSFX | NPSRX |
Total Returns as of September 30, 2020* | |||||
Average Annual | |||||
Inception Date | 1-Year | 5-Year | 10-Year | Expense Ratios | |
Class A Shares at NAV | 12/19/06 | 2.33% | 5.42% | 6.66% | 1.03% |
Class A Shares at maximum Offering Price | 12/19/06 | (2.54)% | 4.40% | 6.14% | - |
ICE BofA U.S. All Capital Securities Index | - | 4.59% | 6.31% | 7.01% | - |
Custom Benchmark Index** | - | 4.96% | 7.22% | 6.52% | - |
Lipper Flexible Income Funds Classification Average | - | 3.48% | 4.97% | 5.35% | - |
Class C Shares | 12/19/06 | 1.63% | 4.63% | 5.87% | 1.79% |
Class R3 Shares | 9/29/09 | 2.09% | 5.15% | 6.39% | 1.29% |
Class I Shares | 12/19/06 | 2.57% | 5.68% | 6.93% | 0.78% |
Total Returns as of September 30, 2020* | ||||
Average Annual | ||||
Inception Date | 1-Year | Since Inception | Expense Ratios | |
Class R6 Shares | 6/30/16 | 2.66% | 5.68% | 0.70% |
Share Class | |||||
Class A1 | Class C | Class R3 | Class R6 | Class I | |
Dividend Yield | 4.75% | 4.27% | 4.74% | 5.26% | 5.20% |
SEC 30-Day Yield | 4.06% | 3.51% | 4.01% | 4.61% | 4.52% |
Fund Allocation (% of net assets) | |
$1,000 Par (or similar) Institutional Preferred | 46.6% |
Contingent Capital Securities | 31.3% |
$25 Par (or similar) Retail Preferred | 20.9% |
Investments Purchased with Collateral from Securities Lending | 0.2% |
Repurchase Agreements | 0.5% |
Other Assets Less Liabilities | 0.5% |
Net Assets | 100% |
Top Five Issuers (% of net assets) | |
Credit Suisse Group AG | 3.9% |
UBS Group AG | 3.3% |
Barclays PLC | 3.3% |
Citigroup Inc | 3.2% |
Lloyds Banking Group PLC | 2.8% |
Portfolio Composition (% of net assets) | |
Banks | 47.9% |
Insurance | 15.6% |
Capital Markets | 12.6% |
Diversified Financial Services | 5.2% |
Food Products | 5.0% |
Other | 12.5% |
Investments Purchased with Collateral from Securities Lending | 0.2% |
Repurchase Agreements | 0.5% |
Other Assets Less Liabilities | 0.5% |
Net Assets | 100% |
Bond Credit Quality (% of total investment exposure) | |
A | 0.3% |
BBB | 64.9% |
BB or Lower | 32.4% |
N/R (not rated) | 2.4% |
Total | 100% |
Country Allocation2 (% of net assets) | |
United States | 59.2% |
United Kingdom | 11.6% |
Switzerland | 7.4% |
France | 6.2% |
Australia | 2.7% |
Netherlands | 2.4% |
Ireland | 2.0% |
Italy | 1.9% |
Spain | 1.8% |
Canada | 1.6% |
Other | 2.5% |
Investments Purchased with Collateral from Securities Lending3 | 0.2% |
Other Assets Less Liabilities | 0.5% |
Net Assets | 100% |
1 | The Fund’s investment limitations with respect to ratings are based on the highest rating provided by any independent rating agency, including agencies other than the three named above. | |
2 | Includes 1.0% (as a percentage of net assets) in emerging market countries. |
Share Class | |||||
Class A | Class C | Class R3 | Class R6 | Class I | |
Actual Performance | |||||
Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value | $1,171.46 | $1,167.09 | $1,169.66 | $1,172.77 | $1,172.66 |
Expenses Incurred During the Period | $ 5.65 | $ 9.70 | $ 6.94 | $ 3.75 | $ 4.29 |
Hypothetical Performance (5% annualized return before expenses) | |||||
Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value | $1,019.80 | $1,016.05 | $1,018.60 | $1,021.55 | $1,021.05 |
Expenses Incurred During the Period | $ 5.25 | $ 9.02 | $ 6.46 | $ 3.49 | $ 3.99 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |
LONG-TERM INVESTMENTS – 98.8% | ||||||
$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 46.6% | ||||||
Automobiles – 1.4% | ||||||
9,215 | General Motors Financial Co Inc | 5.700% | N/A (3) | BB+ | $9,249,556 | |
50,600 | General Motors Financial Co Inc | 5.750% | N/A (3) | BB+ | 48,209,150 | |
Total Automobiles | 57,458,706 | |||||
Banks – 17.9% | ||||||
5,095 | Bank of America Corp | 6.100% | N/A (3) | BBB | 5,546,468 | |
20,880 | Bank of America Corp | 6.250% | N/A (3) | BBB | 22,367,700 | |
8,246 | Bank of America Corp | 6.300% | N/A (3) | BBB | 9,318,805 | |
27,461 | Bank of America Corp, (4) | 6.500% | N/A (3) | BBB | 30,522,901 | |
12,711 | CIT Group Inc | 5.800% | N/A (3) | Ba3 | 10,220,407 | |
31,176 | Citigroup Inc | 5.000% | N/A (3) | BBB- | 31,020,120 | |
38,082 | Citigroup Inc | 5.950% | N/A (3) | BBB- | 39,890,895 | |
12,595 | Citigroup Inc | 6.250% | N/A (3) | BBB- | 13,989,266 | |
33,080 | Citigroup Inc | 6.300% | N/A (3) | BBB- | 34,651,300 | |
15,877 | Citizens Financial Group Inc | 6.375% | N/A (3) | BB+ | 15,777,769 | |
21,796 | CoBank ACB, 144A | 6.250% | N/A (3) | BBB+ | 22,994,780 | |
5,865 | Commerzbank AG, 144A | 8.125% | 9/19/23 | Baa3 | 6,674,605 | |
18,545 | Farm Credit Bank of Texas, 144A | 5.700% | N/A (3) | Baa1 | 19,472,250 | |
9,461 | Fifth Third Bancorp | 4.500% | N/A (3) | Baa3 | 9,520,131 | |
9,768 | HSBC Capital Funding Dollar 1 LP, 144A | 10.176% | N/A (3) | Baa2 | 16,410,240 | |
9,915 | Huntington Bancshares Inc/OH | 4.450% | N/A (3) | Baa3 | 9,815,850 | |
26,535 | Huntington Bancshares Inc/OH | 5.625% | N/A (3) | Baa3 | 29,188,500 | |
31,609 | JPMorgan Chase & Co | 5.000% | N/A (3) | BBB+ | 31,554,516 | |
11,205 | JPMorgan Chase & Co | 6.100% | N/A (3) | BBB+ | 11,765,250 | |
61,996 | JPMorgan Chase & Co | 6.750% | N/A (3) | BBB+ | 67,110,670 | |
12,491 | KeyCorp | 5.000% | N/A (3) | Baa3 | 12,600,296 | |
7,070 | Lloyds Bank PLC, 144A | 12.000% | N/A (3) | Baa3 | 8,077,475 | |
8,023 | M&T Bank Corp | 5.125% | N/A (3) | Baa2 | 8,303,805 | |
8,046 | M&T Bank Corp | 6.450% | N/A (3) | Baa2 | 8,629,335 | |
11,855 | PNC Financial Services Group Inc | 5.000% | N/A (3) | Baa2 | 12,515,323 | |
8,868 | PNC Financial Services Group Inc | 6.750% | N/A (3) | Baa2 | 9,092,357 | |
10,683 | Regions Financial Corp | 5.750% | N/A (3) | BB+ | 11,404,103 | |
68,557 | Truist Financial Corp | 4.800% | N/A (3) | Baa2 | 68,814,089 | |
3,610 | Truist Financial Corp | 4.950% | N/A (3) | Baa2 | 3,799,525 | |
8,146 | Truist Financial Corp | 5.050% | N/A (3) | Baa2 | 7,779,430 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |
Banks (continued) | ||||||
6,100 | USB Realty Corp, (3-Month LIBOR reference rate + 1.147% spread), 144A, (5) | 1.422% | N/A (3) | A3 | $4,941,000 | |
25,373 | Wachovia Capital Trust III | 5.570% | N/A (3) | Baa2 | 25,359,299 | |
36,376 | Wells Fargo & Co | 5.875% | N/A (3) | Baa2 | 39,191,502 | |
23,439 | Wells Fargo & Co | 5.900% | N/A (3) | Baa2 | 23,956,931 | |
6,580 | Wells Fargo & Co | 7.950% | 11/15/29 | Baa1 | 8,841,287 | |
7,490 | Zions Bancorp NA | 5.800% | N/A (3) | BB+ | 7,209,125 | |
7,645 | Zions Bancorp NA | 7.200% | N/A (3) | BB+ | 7,878,325 | |
Total Banks | 706,205,630 | |||||
Capital Markets – 2.9% | ||||||
11,500 | Bank of New York Mellon Corp | 4.700% | N/A (3) | Baa1 | 12,201,500 | |
27,270 | Charles Schwab Corp | 5.375% | N/A (3) | BBB | 29,548,409 | |
1,250 | Dresdner Funding Trust I, 144A | 8.151% | 6/30/31 | Ba1 | 1,815,055 | |
14,970 | Goldman Sachs Group Inc, (3-Month LIBOR reference rate + 3.922% spread), (5) | 4.165% | N/A (3) | BBB- | 14,712,516 | |
23,443 | Goldman Sachs Group Inc | 5.300% | N/A (3) | BBB- | 24,876,528 | |
28,709 | Goldman Sachs Group Inc | 5.500% | N/A (3) | BBB- | 30,287,995 | |
Total Capital Markets | 113,442,003 | |||||
Commercial Services & Supplies – 1.3% | ||||||
40,896 | AerCap Global Aviation Trust, 144A | 6.500% | 6/15/45 | BB+ | 34,761,600 | |
22,885 | AerCap Holdings NV | 5.875% | 10/10/79 | BB+ | 17,548,447 | |
Total Commercial Services & Supplies | 52,310,047 | |||||
Consumer Finance – 0.2% | ||||||
11,204 | Capital One Financial Corp, (3-Month LIBOR reference rate + 3.800% spread), (5) | 4.046% | N/A (3) | Baa3 | 9,903,552 | |
Diversified Financial Services – 3.0% | ||||||
3,955 | Citigroup Capital III | 7.625% | 12/01/36 | Baa3 | 5,590,966 | |
32,650 | Compeer Financial ACA, 144A | 6.750% | N/A (3) | BB+ | 34,609,000 | |
9,165 | Discover Financial Services | 6.125% | N/A (3) | Ba2 | 9,694,737 | |
17,802 | Equitable Holdings Inc | 4.950% | N/A (3) | BBB- | 18,158,040 | |
49,489 | ILFC E-Capital Trust II, 144A | 3.230% | 12/21/65 | BB+ | 26,847,783 | |
21,248 | Voya Financial Inc, (4) | 6.125% | N/A (3) | BBB- | 21,779,200 | |
Total Diversified Financial Services | 116,679,726 | |||||
Electric Utilities – 1.5% | ||||||
10,790 | Electricite de France SA, 144A | 5.250% | N/A (3) | BBB | 11,167,650 | |
33,308 | Emera Inc | 6.750% | 6/15/76 | BB+ | 36,971,880 | |
10,140 | Southern Co | 4.000% | 1/15/51 | BBB | 10,168,123 | |
Total Electric Utilities | 58,307,653 | |||||
Food Products – 3.1% | ||||||
14,500 | Dairy Farmers of America Inc, 144A | 7.125% | N/A (3) | BB+ | 13,346,184 | |
43,096 | Land O' Lakes Inc, 144A | 7.000% | N/A (3) | BB | 37,385,780 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |
Food Products (continued) | ||||||
37,490 | Land O' Lakes Inc, 144A | 7.250% | N/A (3) | BB | $34,771,975 | |
36,890 | Land O' Lakes Inc, 144A | 8.000% | N/A (3) | BB | 35,598,850 | |
Total Food Products | 121,102,789 | |||||
Independent Power & Renewable Electricity Producers – 0.5% | ||||||
5,055 | AES Gener SA, 144A | 7.125% | 3/26/79 | BB | 5,165,250 | |
13,450 | AES Gener SA, 144A | 6.350% | 10/07/79 | BB | 13,567,687 | |
Total Independent Power & Renewable Electricity Producers | 18,732,937 | |||||
Industrial Conglomerates – 1.3% | ||||||
64,209 | General Electric Co | 5.000% | N/A (3) | BBB- | 51,159,381 | |
Insurance – 10.4% | ||||||
10,895 | Aegon NV | 5.500% | 4/11/48 | Baa1 | 11,979,654 | |
7,125 | American International Group Inc | 5.750% | 4/01/48 | Baa2 | 7,767,000 | |
44,403 | Assurant Inc | 7.000% | 3/27/48 | BB+ | 47,844,232 | |
71,915 | Assured Guaranty Municipal Holdings Inc, 144A | 6.400% | 12/15/66 | BBB+ | 71,405,321 | |
10,110 | AXIS Specialty Finance LLC | 4.900% | 1/15/40 | BBB | 10,094,076 | |
13,218 | Enstar Finance LLC | 5.750% | 9/01/40 | BB+ | 13,459,601 | |
23,092 | Markel Corp | 6.000% | N/A (3) | BBB- | 24,419,790 | |
16,965 | MetLife Inc | 3.850% | N/A (3) | BBB | 16,901,381 | |
6,931 | MetLife Inc | 5.875% | N/A (3) | BBB | 7,537,462 | |
17,085 | MetLife Inc, 144A | 9.250% | 4/08/38 | BBB | 25,831,323 | |
12,099 | PartnerRe Finance B LLC | 4.500% | 10/01/50 | BBB | 12,136,093 | |
23,987 | Provident Financing Trust I | 7.405% | 3/15/38 | BB+ | 27,513,866 | |
3,085 | Prudential Financial Inc | 3.700% | 10/01/50 | BBB+ | 3,147,626 | |
11,055 | QBE Insurance Group Ltd, 144A, (4) | 5.875% | N/A (3) | Baa2 | 11,732,119 | |
47,943 | QBE Insurance Group Ltd, 144A | 7.500% | 11/24/43 | Baa1 | 53,867,806 | |
9,931 | QBE Insurance Group Ltd | 6.750% | 12/02/44 | BBB | 11,075,548 | |
53,885 | SBL Holdings Inc, 144A | 7.000% | N/A (3) | BB | 45,802,250 | |
6,600 | Swiss Re Finance Luxembourg SA, 144A | 5.000% | 4/02/49 | A | 7,509,322 | |
Total Insurance | 410,024,470 | |||||
Multi-Utilities – 1.6% | ||||||
29,213 | CenterPoint Energy Inc | 6.125% | N/A (3) | BBB- | 29,692,789 | |
4,200 | CMS Energy Corp | 4.750% | 6/01/50 | Baa2 | 4,448,478 | |
12,710 | NiSource Inc | 5.650% | N/A (3) | BBB- | 12,614,675 | |
15,730 | Sempra Energy | 4.875% | N/A (3) | BBB- | 16,162,575 | |
Total Multi-Utilities | 62,918,517 | |||||
Oil, Gas & Consumable Fuels – 0.9% | ||||||
18,443 | Enbridge Inc | 5.750% | 7/15/80 | BBB- | 19,084,853 | |
9,865 | MPLX LP | 6.875% | N/A (3) | BB+ | 8,078,300 |
Principal Amount (000)/ Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |
Oil, Gas & Consumable Fuels (continued) | ||||||
7,205 | Transcanada Trust | 5.500% | 9/15/79 | BBB | $ 7,519,503 | |
Total Oil, Gas & Consumable Fuels | 34,682,656 | |||||
U.S. Agency – 0.2% | ||||||
6,770 | Farm Credit Bank of Texas, 144A | 6.200% | N/A (3) | BBB+ | 6,770,000 | |
Wireless Telecommunication Services – 0.4% | ||||||
13,444 | Vodafone Group PLC | 7.000% | 4/04/79 | BB+ | 15,953,593 | |
Total $1,000 Par (or similar) Institutional Preferred (cost $1,785,609,940) | 1,835,651,660 |
Principal Amount (000) | Description (1), (6) | Coupon | Maturity | Ratings (2) | Value | |
CONTINGENT CAPITAL SECURITIES – 31.3% | ||||||
Banks – 23.9% | ||||||
$ 10,702 | Australia & New Zealand Banking Group Ltd/United Kingdom, 144A | 6.750% | N/A (3) | Baa2 | $12,243,516 | |
9,325 | Banco Bilbao Vizcaya Argentaria SA | 6.125% | N/A (3) | Ba2 | 9,049,913 | |
22,880 | Banco Bilbao Vizcaya Argentaria SA | 6.500% | N/A (3) | Ba2 | 22,765,600 | |
10,550 | Banco Mercantil del Norte SA/Grand Cayman, 144A | 7.625% | N/A (3) | Ba2 | 10,517,295 | |
36,800 | Banco Santander SA | 7.500% | N/A (3) | Ba1 | 38,824,000 | |
41,385 | Barclays PLC | 7.750% | N/A (3) | BBB- | 42,763,120 | |
29,105 | Barclays PLC | 7.875% | N/A (3) | BBB- | 29,941,769 | |
34,615 | Barclays PLC | 8.000% | N/A (3) | BBB- | 36,864,975 | |
21,500 | Barclays PLC | 6.125% | N/A (3) | BBB- | 21,795,625 | |
51,991 | BNP Paribas SA, 144A | 7.375% | N/A (3) | BBB | 57,904,976 | |
26,555 | BNP Paribas SA, 144A | 6.625% | N/A (3) | BBB | 28,115,106 | |
4,150 | BNP Paribas SA, 144A | 7.000% | N/A (3) | BBB | 4,788,063 | |
34,903 | Credit Agricole SA, 144A | 7.875% | N/A (3) | BBB | 38,567,815 | |
48,104 | Credit Agricole SA, 144A | 8.125% | N/A (3) | BBB | 56,522,200 | |
19,771 | Credit Suisse Group AG, 144A | 5.250% | N/A (3) | BB+ | 19,810,542 | |
58,451 | HSBC Holdings PLC | 6.375% | N/A (3) | BBB | 61,179,792 | |
16,885 | HSBC Holdings PLC | 6.000% | N/A (3) | BBB | 17,307,125 | |
18,245 | ING Groep NV | 6.500% | N/A (3) | BBB | 19,303,210 | |
8,516 | ING Groep NV | 6.875% | N/A (3) | BBB | 8,870,504 | |
17,650 | ING Groep NV | 6.750% | N/A (3) | BBB | 18,664,875 | |
23,870 | ING Groep NV | 5.750% | N/A (3) | BBB | 24,794,962 | |
29,635 | Intesa Sanpaolo SpA, 144A | 7.700% | N/A (3) | BB- | 31,116,750 | |
63,681 | Lloyds Banking Group PLC | 7.500% | N/A (3) | Baa3 | 66,785,449 | |
34,280 | Lloyds Banking Group PLC | 7.500% | N/A (3) | Baa3 | 36,508,200 | |
15,370 | Macquarie Bank Ltd/London, 144A | 6.125% | N/A (3) | BB+ | 15,777,305 | |
28,559 | Natwest Group PLC | 8.000% | N/A (3) | BBB- | 31,700,490 | |
23,546 | Natwest Group PLC | 8.625% | N/A (3) | BBB- | 24,134,650 |
Principal Amount (000) | Description (1), (6) | Coupon | Maturity | Ratings (2) | Value | |
Banks (continued) | ||||||
$ 13,130 | Natwest Group PLC | 6.000% | N/A (3) | BBB- | $13,359,775 | |
17,275 | Nordea Bank Abp, 144A | 6.625% | N/A (3) | BBB+ | 19,491,901 | |
28,090 | Societe Generale SA, 144A | 7.875% | N/A (3) | BB+ | 29,722,591 | |
8,883 | Societe Generale SA, 144A | 8.000% | N/A (3) | BB | 9,915,649 | |
7,841 | Societe Generale SA, 144A,(4) | 6.750% | N/A (3) | BB | 8,203,646 | |
22,880 | Standard Chartered PLC, 144A | 7.500% | N/A (3) | BBB- | 23,398,461 | |
8,699 | Standard Chartered PLC, 144A | 7.750% | N/A (3) | BBB- | 9,253,561 | |
39,405 | UniCredit SpA | 8.000% | N/A (3) | B+ | 41,966,325 | |
887,227 | Total Banks | 941,929,736 | ||||
Capital Markets – 7.4% | ||||||
24,473 | Credit Suisse Group AG, 144A | 7.500% | N/A (3) | BB+ | 26,675,570 | |
39,849 | Credit Suisse Group AG, 144A | 7.500% | N/A (3) | BB+ | 42,053,048 | |
38,420 | Credit Suisse Group AG, 144A | 7.250% | N/A (3) | BB+ | 41,637,675 | |
21,805 | Credit Suisse Group AG, 144A | 6.375% | N/A (3) | BB+ | 23,304,094 | |
32,160 | Deutsche Bank AG | 6.000% | N/A (3) | B+ | 27,738,000 | |
32,355 | UBS Group AG, 144A | 7.000% | N/A (3) | BBB | 34,538,962 | |
58,972 | UBS Group AG | 7.000% | N/A (3) | BBB | 65,606,350 | |
29,025 | UBS Group AG | 6.875% | N/A (3) | BBB | 31,872,933 | |
277,059 | Total Capital Markets | 293,426,632 | ||||
$ 1,164,286 | Total Contingent Capital Securities ($1,191,822,501) | 1,235,356,368 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||
$25 PAR (OR SIMILAR) RETAIL PREFERRED – 20.9% | ||||||
Banks – 6.1% | ||||||
24,955 | Citigroup Inc, (4) | 7.125% | BBB- | $701,485 | ||
571,286 | CoBank ACB, 144A, (7) | 6.250% | BBB+ | 59,413,744 | ||
142,889 | CoBank ACB, (7) | 6.200% | BBB+ | 15,324,845 | ||
441,610 | Farm Credit Bank of Texas, 144A, (7) | 6.750% | Baa1 | 46,369,050 | ||
563,126 | Fifth Third Bancorp | 6.625% | Baa3 | 15,029,833 | ||
544,036 | Huntington Bancshares Inc/OH | 6.250% | Baa3 | 13,753,230 | ||
280,000 | Huntington Bancshares Inc/OH, (7) | 2.975% | Baa3 | 6,440,000 | ||
246,560 | KeyCorp, (4) | 6.125% | Baa3 | 7,189,690 | ||
818,283 | Regions Financial Corp, (4) | 6.375% | BB+ | 22,666,439 | ||
287,113 | Regions Financial Corp, (4) | 5.700% | BB+ | 7,777,891 | ||
538,660 | Synovus Financial Corp, (4) | 5.875% | BB- | 13,859,722 | ||
381,100 | Truist Financial Corp | 4.750% | Baa2 | 9,889,545 | ||
342,966 | Wells Fargo & Co, (4) | 4.750% | Baa2 | 8,622,165 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||
Banks (continued) | ||||||
487,592 | Wintrust Financial Corp | 6.875% | BB | $ 13,013,831 | ||
Total Banks | 240,051,470 | |||||
Capital Markets – 2.3% | ||||||
324,297 | Goldman Sachs Group Inc, (4) | 5.500% | Ba1 | 8,597,113 | ||
777,596 | Morgan Stanley | 7.125% | BBB- | 21,461,650 | ||
477,788 | Morgan Stanley | 6.875% | BBB- | 12,971,944 | ||
1,220,881 | Morgan Stanley | 5.850% | BBB- | 33,403,304 | ||
334,490 | Morgan Stanley | 6.375% | BBB- | 9,131,577 | ||
149,557 | State Street Corp, (4) | 5.350% | Baa1 | 4,147,216 | ||
Total Capital Markets | 89,712,804 | |||||
Commercial Services & Supplies – 0.4% | ||||||
594,819 | Air Lease Corp, (4) | 6.150% | BB+ | 13,847,386 | ||
Consumer Finance – 0.8% | ||||||
810,299 | GMAC Capital Trust I, (4) | 6.065% | BB- | 20,233,166 | ||
433,781 | Synchrony Financial, (4) | 5.625% | BB- | 10,679,688 | ||
Total Consumer Finance | 30,912,854 | |||||
Diversified Financial Services – 2.2% | ||||||
403,934 | AgriBank FCB, (7) | 6.875% | BBB+ | 43,018,971 | ||
508,300 | Equitable Holdings Inc | 5.250% | BBB- | 12,976,899 | ||
1,158,054 | Voya Financial Inc, (4) | 5.350% | BBB- | 32,541,317 | ||
Total Diversified Financial Services | 88,537,187 | |||||
Diversified Telecommunication Services – 0.2% | ||||||
314,900 | AT&T Inc, (4) | 4.750% | BBB | 8,029,950 | ||
Food Products – 1.9% | ||||||
506,287 | CHS Inc, (4) | 7.875% | N/R | 14,069,716 | ||
1,359,502 | CHS Inc | 7.100% | N/R | 36,230,728 | ||
483,646 | CHS Inc | 6.750% | N/R | 12,695,708 | ||
12,881 | CHS Inc | 7.500% | N/R | 359,122 | ||
53,000 | Dairy Farmers of America Inc, 144A, (7) | 7.875% | BB+ | 4,717,000 | ||
66,700 | Dairy Farmers of America Inc, 144A, (7) | 7.875% | BB+ | 5,936,300 | ||
Total Food Products | 74,008,574 | |||||
Insurance – 5.2% | ||||||
1,358,702 | American Equity Investment Life Holding Co | 5.950% | BB | 33,220,264 | ||
510,551 | American Equity Investment Life Holding Co | 6.625% | BB | 13,412,175 | ||
1,320,871 | Aspen Insurance Holdings Ltd | 5.950% | BB+ | 33,325,575 | ||
603,290 | Aspen Insurance Holdings Ltd, (4) | 5.625% | BB+ | 15,426,125 | ||
666,608 | Athene Holding Ltd | 6.350% | BBB- | 17,898,425 | ||
665,322 | Athene Holding Ltd | 6.375% | BBB- | 18,030,226 | ||
379,505 | Axis Capital Holdings Ltd | 5.500% | BBB | 9,764,664 |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||
Insurance (continued) | ||||||
253,091 | Delphi Financial Group Inc, (7) | 3.470% | BBB | $4,720,147 | ||
590,711 | Enstar Group Ltd, (4) | 7.000% | BB+ | 15,517,978 | ||
154,637 | Globe Life Inc | 6.125% | BBB+ | 3,978,810 | ||
855,566 | Maiden Holdings North America Ltd | 7.750% | N/R | 18,856,675 | ||
807,896 | Reinsurance Group of America Inc, (4) | 5.750% | BBB+ | 22,136,350 | ||
Total Insurance | 206,287,414 | |||||
Oil, Gas & Consumable Fuels – 0.8% | ||||||
639,853 | NuStar Energy LP, (4) | 8.500% | B2 | 11,344,594 | ||
464,095 | NuStar Energy LP | 7.625% | B2 | 7,453,366 | ||
736,694 | NuStar Logistics LP | 7.009% | B | 14,100,323 | ||
Total Oil, Gas & Consumable Fuels | 32,898,283 | |||||
Thrifts & Mortgage Finance – 1.0% | ||||||
400,000 | Federal Agricultural Mortgage Corp | 6.000% | N/R | 10,712,000 | ||
1,029,269 | New York Community Bancorp Inc | 6.375% | Ba2 | 28,253,434 | ||
Total Thrifts & Mortgage Finance | 38,965,434 | |||||
Total $25 Par (or similar) Retail Preferred (cost $809,239,349) | 823,251,356 | |||||
Total Long-Term Investments (cost $3,786,671,790) | 3,894,259,384 |
Shares | Description (1) | Coupon | Value | |||
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.2% | ||||||
MONEY MARKET FUNDS – 0.2% | ||||||
7,456,733 | State Street Navigator Securities Lending Government Money Market Portfolio, (8) | 0.090% (9) | $ 7,456,733 | |||
Total Investments Purchased with Collateral from Securities Lending (cost $7,456,733) | 7,456,733 |
Principal Amount (000) | Description (1) | Coupon | Maturity | Value | ||
SHORT-TERM INVESTMENTS – 0.5% | ||||||
REPURCHASE AGREEMENTS – 0.5% | ||||||
$ 20,484 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/20, repurchase price $20,484,346, collateralized $20,989,200 U.S. Treasury Notes, 0.375%, due 9/30/27, value $20,894,098 | 0.000% | 10/01/20 | $ 20,484,346 | ||
Total Short-Term Investments (cost $20,484,346) | 20,484,346 | |||||
Total Investments (cost $3,814,612,869) – 99.5% | 3,922,200,463 | |||||
Other Assets Less Liabilities – 0.5% (10) | 20,817,005 | |||||
Net Assets – 100% | $ 3,943,017,468 |
Futures Contracts | |||||||
Description | Contract Position | Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | Variation Margin Receivable/ (Payable) |
U.S. Treasury 10-Year Note | Short | (1,069) | 12/20 | $(148,505,372) | $(149,158,906) | $(653,534) | $267,250 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Ratings are not covered by the report of independent registered public accounting firm. | |
(3) | Perpetual security. Maturity date is not applicable. | |
(4) | Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $7,174,884. | |
(5) | Variable rate security. The rate shown is the coupon as of the end of the reporting period. | |
(6) | Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. | |
(7) | For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 - Investment Valuation and Fair Value Measurements for more information. | |
(8) | The Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4- Portfolio Securities and Investments in Derivatives for more information. | |
(9) | The rate shown is the one-day yield as of the end of the reporting period. | |
(10) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter ("OTC") derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. | |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. | |
LIBOR | London Inter-Bank Offered Rate | |
N/A | Not Applicable. |
Assets | |
Long-term investments, at value (cost $3,786,671,790)(1) | $3,894,259,384 |
Investment purchased with collateral from securities lending, at value (cost approximates value) | 7,456,733 |
Short-term investments, at value (cost approximates value) | 20,484,346 |
Cash | 1,242,597 |
Cash collateral at brokers for investments in futures contracts(2) | 1,663,963 |
Receivable for: | |
Dividends | 4,740,873 |
Interest | 36,594,888 |
Investments sold | 6,261,012 |
Shares sold | 9,095,471 |
Variation margin on futures contracts | 267,250 |
Other assets | 258,479 |
Total assets | 3,982,324,996 |
Liabilities | |
Payable for: | |
Collateral from securities lending program | 7,456,733 |
Dividends | 2,287,223 |
Investments purchased - regular settlement | 13,827,734 |
Shares redeemed | 10,821,290 |
Accrued expenses: | |
Management fees | 2,129,880 |
Trustees fees | 207,344 |
12b-1 distribution and service fees | 291,093 |
Other | 2,286,231 |
Total liabilities | 39,307,528 |
Net assets | $3,943,017,468 |
Class A Shares | |
Net assets | $ 458,390,522 |
Shares outstanding | 27,400,547 |
Net asset value ("NAV") per share | $ 16.73 |
Offering price per share (NAV per share plus maximum sales charge of 4.75% of offering price) | $ 17.56 |
Class C Shares | |
Net assets | $ 235,790,344 |
Shares outstanding | 14,086,422 |
NAV and offering price per share | $ 16.74 |
Class R3 Shares | |
Net assets | $ 2,989,204 |
Shares outstanding | 177,512 |
NAV and offering price per share | $ 16.84 |
Class R6 Shares | |
Net assets | $ 453,347,794 |
Shares outstanding | 27,026,021 |
NAV and offering price per share | $ 16.77 |
Class I Shares | |
Net assets | $2,792,499,604 |
Shares outstanding | 166,788,977 |
NAV and offering price per share | $ 16.74 |
Fund level net assets consist of: | |
Capital paid-in | $4,043,176,435 |
Total distributable earnings | (100,158,967) |
Fund level net assets | $3,943,017,468 |
Authorized shares - per class | Unlimited |
Par value per share | $ 0.01 |
(1) | Includes securities loaned of $7,174,884 |
(2) | Cash pledged to collateralize the net payment obligations for investments in derivatives. |
Investment Income | |
Dividends | $ 59,905,648 |
Interest | 174,708,369 |
Securities lending income | 2,133 |
Total investment income | 234,616,150 |
Expenses | |
Management fees | 25,539,785 |
12b-1 service fees - Class A Shares | 1,090,720 |
12b-1 distribution and service fees - Class C Shares | 2,481,381 |
12b-1 distribution and service fees - Class R3 Shares | 10,198 |
Shareholder servicing agent fees | 3,176,147 |
Custodian fees | 384,970 |
Professional fees | 167,168 |
Trustees fees | 107,862 |
Shareholder reporting expenses | 404,798 |
Federal and state registration fees | 187,315 |
Other | 138,838 |
Total expenses | 33,689,182 |
Net investment income (loss) | 200,926,968 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments and foreign currency | (49,820,389) |
Futures contracts | (11,927,812) |
Swaps | (2,222,747) |
Change in net unrealized appreciation (depreciation) of: | |
Investments and foreign currency | (60,947,893) |
Futures contracts | (653,534) |
Swaps | 1,150,645 |
Net realized and unrealized gain (loss) | (124,421,730) |
Net increase (decrease) in net assets from operations | $ 76,505,238 |
Year Ended 9/30/20 | Year Ended 9/30/19 | |
Operations | ||
Net investment income (loss) | $ 200,926,968 | $ 194,861,417 |
Net realized gain (loss) from: | ||
Investments and foreign currency | (49,820,389) | (78,165,641) |
Futures contracts | (11,927,812) | (1,348,169) |
Swaps | (2,222,747) | 94,148 |
Change in net unrealized appreciation (depreciation) of: | ||
Investments and foreign currency | (60,947,893) | 149,377,892 |
Futures contracts | (653,534) | — |
Swaps | 1,150,645 | (2,329,728) |
Net increase (decrease) in net assets from operations | 76,505,238 | 262,489,919 |
Distributions to Shareholders | ||
Dividends: | ||
Class A Shares | (22,381,281) | (19,904,558) |
Class C Shares | (10,869,756) | (12,011,153) |
Class R3 Shares | (99,790) | (76,364) |
Class R6 Shares | (22,477,503) | (23,157,756) |
Class I Shares | (151,218,507) | (138,696,216) |
Decrease in net assets from distributions to shareholders | (207,046,837) | (193,846,047) |
Fund Share Transactions | ||
Proceeds from sale of shares | 2,069,830,048 | 1,462,956,293 |
Proceeds from shares issued to shareholders due to reinvestment of distributions | 179,694,455 | 167,439,726 |
2,249,524,503 | 1,630,396,019 | |
Cost of shares redeemed | (2,036,765,732) | (1,822,614,743) |
Net increase (decrease) in net assets from Fund share transactions | 212,758,771 | (192,218,724) |
Net increase (decrease) in net assets | 82,217,172 | (123,574,852) |
Net assets at the beginning of period | 3,860,800,296 | 3,984,375,148 |
Net assets at the end of period | $ 3,943,017,468 | $ 3,860,800,296 |
Investment Operations | Less Distributions | ||||||||
Class (Commencement Date) Year Ended September 30, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | |
Class A (12/06) | |||||||||
2020 | $17.21 | $0.83 | $(0.45) | $ 0.38 | $(0.86) | $ — | $(0.86) | $16.73 | |
2019 | 16.75 | 0.90 | 0.46 | 1.36 | (0.90) | — | (0.90) | 17.21 | |
2018 | 17.72 | 0.90 | (0.97) | (0.07) | (0.90) | — | (0.90) | 16.75 | |
2017 | 17.14 | 0.90 | 0.62 | 1.52 | (0.94) | — | (0.94) | 17.72 | |
2016 | 16.85 | 0.92 | 0.38 | 1.30 | (0.94) | (0.07) | (1.01) | 17.14 | |
Class C (12/06) | |||||||||
2020 | 17.21 | 0.70 | (0.44) | 0.26 | (0.73) | — | (0.73) | 16.74 | |
2019 | 16.77 | 0.78 | 0.44 | 1.22 | (0.78) | — | (0.78) | 17.21 | |
2018 | 17.73 | 0.77 | (0.96) | (0.19) | (0.77) | — | (0.77) | 16.77 | |
2017 | 17.15 | 0.77 | 0.62 | 1.39 | (0.81) | — | (0.81) | 17.73 | |
2016 | 16.87 | 0.79 | 0.37 | 1.16 | (0.81) | (0.07) | (0.88) | 17.15 | |
Class R3 (09/09) | |||||||||
2020 | 17.32 | 0.79 | (0.45) | 0.34 | (0.82) | — | (0.82) | 16.84 | |
2019 | 16.87 | 0.87 | 0.44 | 1.31 | (0.86) | — | (0.86) | 17.32 | |
2018 | 17.84 | 0.84 | (0.94) | (0.10) | (0.87) | — | (0.87) | 16.87 | |
2017 | 17.26 | 0.86 | 0.62 | 1.48 | (0.90) | — | (0.90) | 17.84 | |
2016 | 16.97 | 0.88 | 0.38 | 1.26 | (0.90) | (0.07) | (0.97) | 17.26 | |
Class R6 (06/16) | |||||||||
2020 | 17.25 | 0.89 | (0.46) | 0.43 | (0.91) | — | (0.91) | 16.77 | |
2019 | 16.79 | 0.95 | 0.46 | 1.41 | (0.95) | — | (0.95) | 17.25 | |
2018 | 17.74 | 0.97 | (0.97) | — | (0.95) | — | (0.95) | 16.79 | |
2017 | 17.15 | 0.95 | 0.62 | 1.57 | (0.98) | — | (0.98) | 17.74 | |
2016(e) | 16.80 | 0.23 | 0.36 | 0.59 | (0.24) | — | (0.24) | 17.15 | |
Class I (12/06) | |||||||||
2020 | 17.22 | 0.87 | (0.45) | 0.42 | (0.90) | — | (0.90) | 16.74 | |
2019 | 16.77 | 0.95 | 0.44 | 1.39 | (0.94) | — | (0.94) | 17.22 | |
2018 | 17.73 | 0.94 | (0.95) | (0.01) | (0.95) | — | (0.95) | 16.77 | |
2017 | 17.14 | 0.95 | 0.62 | 1.57 | (0.98) | — | (0.98) | 17.73 | |
2016 | 16.86 | 0.96 | 0.37 | 1.33 | (0.98) | (0.07) | (1.05) | 17.14 |
Ratios/Supplemental Data | ||||
Ratios to Average Net Assets(c) | ||||
Total Return(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(d) |
2.33% | $ 458,391 | 1.03% | 4.97% | 37% |
8.45 | 416,289 | 1.03 | 5.44 | 34 |
(0.39) | 383,353 | 1.03 | 5.20 | 30 |
9.11 | 458,980 | 1.04 | 5.19 | 9 |
7.96 | 492,911 | 1.07 | 5.46 | 15 |
1.63 | 235,790 | 1.78 | 4.21 | 37 |
7.54 | 260,290 | 1.79 | 4.69 | 34 |
(1.07) | 276,059 | 1.78 | 4.47 | 30 |
8.31 | 291,647 | 1.79 | 4.46 | 9 |
7.08 | 262,685 | 1.82 | 4.72 | 15 |
2.09 | 2,989 | 1.28 | 4.82 | 37 |
8.10 | 1,322 | 1.29 | 5.20 | 34 |
(0.59) | 1,662 | 1.27 | 4.81 | 30 |
8.82 | 2,412 | 1.28 | 4.92 | 9 |
7.67 | 2,048 | 1.32 | 5.18 | 15 |
2.66 | 453,348 | 0.69 | 5.32 | 37 |
8.77 | 382,299 | 0.70 | 5.73 | 34 |
(0.01) | 673,119 | 0.71 | 5.63 | 30 |
9.42 | 4,021 | 0.72 | 5.51 | 9 |
3.54 | 6,498 | 0.75* | 5.25* | 15 |
2.57 | 2,792,500 | 0.78 | 5.20 | 37 |
8.66 | 2,800,599 | 0.78 | 5.69 | 34 |
(0.09) | 2,650,158 | 0.78 | 5.47 | 30 |
9.43 | 3,035,551 | 0.78 | 5.47 | 9 |
8.16 | 1,783,432 | 0.82 | 5.72 | 15 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(c) | The Fund has a contractual fee waiver/expense reimbursement agreement with the Adviser, but did not receive a fee waiver/expense reimbursement during the periods presented herein. See Note 7 - Management Fees and Other Transactions with Affiliates for more information. |
(d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period. |
(e) | For the period June 30, 2016 (commencement of operations) through September 30, 2016. |
* | Annualized. |
Value | % of Net Assets | |
Country: | ||
United Kingdom | $ 455,434,300 | 11.6% |
Switzerland | 293,008,496 | 7.4 |
France | 244,907,696 | 6.2 |
Australia | 104,696,294 | 2.7 |
Netherlands | 95,749,298 | 2.4 |
Ireland | 79,157,830 | 2.0 |
Italy | 73,083,075 | 1.9 |
Spain | 70,639,513 | 1.8 |
Canada | 63,576,236 | 1.6 |
Other | 99,934,581 | 2.5 |
Total non-U.S. securities | $1,580,187,319 | 40.1% |
Level 1 | Level 2 | Level 3 | Total | |
Long-Term Investments*: | ||||
$1,000 Par (or similar) Institutional Preferred | $ — | $1,835,651,660 | $ — | $1,835,651,660 |
Contingent Capital Securities | — | 1,235,356,368 | — | 1,235,356,368 |
$25 Par (or similar) Retail Preferred | 637,311,299 | 185,940,057** | — | 823,251,356 |
Investments Purchased with Collateral from Securities Lending | 7,456,733 | — | — | 7,456,733 |
Short-Term Investments: | ||||
Repurchase Agreements | — | 20,484,346 | — | 20,484,346 |
Investments in Derivatives: | ||||
Futures Contracts*** | (653,534) | — | — | (653,534) |
Total | $644,114,498 | $3,277,432,431 | $ — | $3,921,546,929 |
* | Refer to the Fund's Portfolio of Investments for industry classifications. |
** | Refer to the Fund's Portfolio of Investments for securities classified as Level 2. |
*** | Represents net unrealized appreciation (depreciation) as reported in the Fund's Portfolio of Investments. |
Counterparty | Short-Term Investments, at Value | Collateral Pledged (From) Counterparty* | Net Exposure |
Fixed Income Clearing Corporation | $20,484,346 | $(20,484,346) | $ — |
Asset Class out on Loan | Long-Term Investments, at Value | Total Collateral Received |
$1,000 Par (or similar) Institutional Preferred | $ 977,750 | $1,018,650 |
Contingent Capital Securities | $3,013,200 | $3,153,600 |
$25 Par (or similar) Retail Preferred | $3,183,934 | $3,284,404 |
$7,174,884 | $7,456,654 |
Average notional amount of futures contracts outstanding* | $121,951,140 |
* | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the the end of each fiscal quarter within the current fiscal period. |
Location on the Statement of Assets and Liabilities | ||||||
Asset Derivatives | (Liability) Derivatives | |||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |
Interest rate | Futures contracts | Receivable for variation margin on futures contracts** | $(653,534) | — | $ — |
Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Futures Contracts | Change in net Unrealized Appreciation (Depreciation) of Futures Contracts |
Interest rate | Futures contracts | $(11,927,812) | $(653,534) |
Average notional amount of interest rate swap contracts outstanding* | $48,000,000 |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Swaps | Change in net Unrealized Appreciation (Depreciation) of Swaps |
Interest rate | Swaps | $(2,222,747) | $1,150,645 |
Year Ended 9/30/20 | Year Ended 9/30/19 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold: | |||||
Class A | 11,753,037 | $ 195,406,185 | 8,986,571 | $ 149,491,839 | |
Class A – automatic conversion of Class C Shares | — | — | 820 | 13,773 | |
Class C | 3,018,249 | 51,114,830 | 2,228,579 | 37,188,468 | |
Class R3 | 192,889 | 2,723,003 | 30,152 | 502,278 | |
Class R6 | 14,148,938 | 226,588,031 | 5,882,752 | 98,134,662 | |
Class I | 96,458,330 | 1,593,997,999 | 70,834,997 | 1,177,625,273 | |
Class T | — | — | — | — | |
Shares issued to shareholders due to reinvestment of distributions: | |||||
Class A | 1,221,797 | 20,313,209 | 1,091,552 | 18,143,666 | |
Class C | 598,821 | 9,968,473 | 653,328 | 10,851,902 | |
Class R3 | 5,584 | 92,139 | 2,686 | 44,821 | |
Class R6 | 1,328,993 | 22,125,087 | 1,392,365 | 23,115,441 | |
Class I | 7,633,690 | 127,195,547 | 6,930,431 | 115,283,896 | |
Class T | — | — | — | — | |
136,360,328 | 2,249,524,503 | 98,034,233 | 1,630,396,019 | ||
Shares redeemed: | |||||
Class A | (9,769,365) | (160,262,711) | (8,764,202) | (143,998,368) | |
Class C | (4,650,693) | (76,526,327) | (4,225,172) | (69,839,611) | |
Class C – automatic conversion to Class A Shares | — | — | (819) | (13,773) | |
Class R3 | (97,306) | (1,565,508) | (55,037) | (913,720) | |
Class R6 | (10,616,657) | (172,880,021) | (25,202,118) | (409,595,351) | |
Class I | (99,967,576) | (1,625,531,165) | (73,169,804) | (1,198,231,283) | |
Class T | — | — | (1,424) | (22,637) | |
(125,101,597) | (2,036,765,732) | (111,418,576) | (1,822,614,743) | ||
Net increase (decrease) | 11,258,731 | $ 212,758,771 | (13,384,343) | $ (192,218,724) |
Tax cost of investments | $3,829,380,481 |
Gross unrealized: | |
Appreciation | $ 148,142,306 |
Depreciation | (55,975,859) |
Net unrealized appreciation (depreciation) of investments | $ 92,166,447 |
Undistributed net ordinary income1, 2 | $1,937,311 |
Undistributed net long-term capital gains | — |
1 | Undistributed net ordinary income (on a tax basis) has not been reduced for the dividends declared during the period September 1, 2020 through September 30, 2020 and paid October 1, 2020. |
2 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
2020 | |
Distributions from net ordinary income2 | $207,046,837 |
Distributions from net long-term capital gains | — |
2019 | |
Distributions from net ordinary income2 | $195,049,031 |
Distributions from net long-term capital gains | — |
2 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Not subject to expiration: | |
Short-term | $ 83,889,251 |
Long-term | 93,491,515 |
Total | $177,380,766 |
Average Daily Net Assets | Fund-Level Fee Rate |
For the first $125 million | 0.5500% |
For the next $125 million | 0.5375 |
For the next $250 million | 0.5250 |
For the next $500 million | 0.5125 |
For the next $1 billion | 0.5000 |
For the next $3 billion | 0.4750 |
For the next $5 billion | 0.4500 |
For net assets over $10 billion | 0.4375 |
Complex-Level Eligible Asset Breakpoint Level* | Effective Complex-Level Fee Rate at Breakpoint Level |
$55 billion | 0.2000% |
$56 billion | 0.1996 |
$57 billion | 0.1989 |
$60 billion | 0.1961 |
$63 billion | 0.1931 |
$66 billion | 0.1900 |
$71 billion | 0.1851 |
$76 billion | 0.1806 |
$80 billion | 0.1773 |
$91 billion | 0.1691 |
$125 billion | 0.1599 |
$200 billion | 0.1505 |
$250 billion | 0.1469 |
$300 billion | 0.1445 |
Sales charges collected (Unaudited) | $1,620,627 |
Paid to financial intermediaries (Unaudited) | 1,467,061 |
Commission advances (Unaudited) | $773,627 |
12b-1 fees retained (Unaudited) | $435,015 |
CDSC retained (Unaudited) | $80,888 |
Maximum outstanding balance | $155,700,000 |
Utilization period (days outstanding) | 14 |
Average daily balance outstanding | $38,864,286 |
Average annual interest rate | 1.59% |
% of DRD | 44.8% | |
% of QDI | 84.9% |
% of Interest-Related Dividends for the period October 1, 2019 through December 31, 2019 | 12.8% | |
% of Interest-Related Dividends for the period January 1, 2020 through September 30, 2020 | 6.8% |
• | Fund Improvements and Product Management Initiatives – continuing to proactively manage the Nuveen fund complex as a whole and at the individual fund level with an aim to enhance the shareholder outcomes through, among other things, rationalizing the product line and gaining efficiencies through mergers, repositionings and liquidations; launching new share classes; reviewing and updating investment policies and benchmarks; closing funds to new investments; rebranding the exchange-traded fund (“ETF”) product line; and integrating certain investment teams and changing the portfolio managers serving various funds; |
• | Capital Initiatives – continuing to invest capital to support new Nuveen funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds; |
• | Liquidity Management – implementing the liquidity risk management program which was designed to assess and manage the liquidity risk of the Nuveen funds. The Board noted that this program was particularly helpful in addressing the high volatility and liquidity challenges that arose in the market, particularly for the high yield municipal sector, during the first half of 2020; |
• | Compliance Program Initiatives – continuing efforts to mitigate compliance risk, increase operating efficiencies, strengthen key compliance program elements and support international business growth and other objectives through, among other things, integrating various investment teams across affiliates, consolidating marketing review functions, enhancing compliance related technologies and establishing and maintaining shared broad-based compliance policies throughout the organization and its affiliates; |
• | Risk Management and Valuation Services – continuing efforts to provide Nuveen with a more disciplined and consistent approach to identifying and mitigating the firm’s operational risks through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates and adopting a risk operational framework across the complex; |
• | Regulatory Matters – continuing efforts to monitor regulatory trends and advocate on behalf of the Nuveen funds, to implement and comply with new or revised rules and mandates and to respond to regulatory inquiries and exams; |
• | Government Relations – continuing efforts of various Nuveen teams and affiliates to develop policy positions on a broad range of issues that may impact the Nuveen funds, advocate and communicate these positions to lawmakers and other regulatory authorities and work with trade associations to ensure these positions are represented; |
• | Business Continuity, Disaster Recovery and Information Services – continuing to periodically test business continuity and disaster recovery plans, maintain an information security program designed to identify and manage information security risks, and provide reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, potential impact of new or revised laws and regulations, incident tracking and other relevant information technology risk-related reports; and |
• | Expanded Dividend Management Services – continuing to manage the dividends among the varying types of Nuveen funds within the Nuveen complex to be consistent with the respective fund’s product design and investing resources to develop systems to assist in the process for newer products such as target term funds and ETFs. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
Independent Trustees: | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Trustee | 2008 | Formerly, a Co-Founding Partner, Promus Capital (2008-2017); Director, Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; formerly, Director, Fulcrum IT Services LLC (2010-2019); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003- 2007) and Northern Trust Hong Kong Board (1997-2004). | 152 |
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine Foundation, a private philanthropic corporation; Director and Chairman, United Fire Group, a publicly held company; Director, Public member, American Board of Orthopaedic Surgery (since 2015); Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy and The Gazette Company; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2003 | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director of Wellmark, Inc. (since 2009); past Director (2005-2015), and past President (2010- 2014) Beta Gamma Sigma, Inc., The International Business Honor Society; formerly, Director (2004-2018) of Xerox Corporation; Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 152 |
Albin F. Moschner 1952 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions; formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions (1991-1996) and Chief Executive Officer (1995-1996) of Zenith Electronics Corporation. | 152 |
John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Member of Board of Directors of Core12 LLC. (since 2008), a private firm which develops branding, marketing and communications strategies for clients; served The President's Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007. | 152 |
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since 2013); formerly, Board Member, U.S. Endowment for Forestry and Communities (2013-2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 152 |
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Former Director, Chicago Board Options Exchange (2006-2017), and C2 Options Exchange, Incorporated (2009-2017); former Director, Cboe Global Markets, Inc., formerly, CBOE Holdings, Inc. (2010-May 2020); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee |
Matthew Thronton III 1958 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2020 | Formerly, Executive Vice President and Cheif Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation ("FedEx") (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly Member of the Board of Directors (2012-2018), Safe Kids Worldwide® (a non-profit organization dedicated to preventing childhood injuries). Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Director (since November 2020), Crown Castle International Corp. (owns, operates and leases cell towers and fiber routes supporting small cells and fiber solutions). | 152 |
Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | 152 |
Robert L. Young 1963 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2017 | Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (formerly, One Group Dealer Services, Inc.) (1999-2017). | 152 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
Officers of the Funds: | ||||
Christopher E. Stickrod 1976 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 2020 | Senior Managing Director (since 2017) and Head of Advisory Product (since 2020), formerly, Managing Director (2016-2017) and Senior Vice President (2013-2016) of Nuveen, LLC; Senior Managing Director of Nuveen Securities, LLC (since 2018) and of Nuveen Fund Advisors, LLC (since 2019). | |
Mark J. Czarniecki 1979 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Secretary | 2013 | Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2016) and Nuveen Fund Advisors (since 2017); Vice President and Associate General Counsel of Nuveen (since 2013) and Vice President, Assistant Secretary and Associate General Counsel of Nuveen Asset Management (since 2018). | |
Diana R. Gonzalez 1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2017 | Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice President and Associate General Counsel of Nuveen (since 2017); Associate General Counsel of Jackson National Asset Management (2012-2017). | |
Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2016 | Managing Director (since 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011- 2016) of Nuveen; Managing Director (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | |
Brian J. Lockhart 1974 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2019 | Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Vice President (2010-2017) of Nuveen; Head of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); Chartered Financial Analyst and Certified Financial Risk Manager. | |
Jacques M. Longerstaey 1963 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since May 2019); Senior Managing Director (since May 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (from 2013-2019). | |
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2007 | Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen Investments, Inc., formerly, Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly Executive Vice President (2016-2017) and Managing Director (2008-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC, formerly, Executive Vice President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC, formerly Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2011-2016); Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC, formerly Executive Vice President (2016-2017); Vice President (since 2007) and Secretary (since 2016), formerly, Assistant Secretary, of NWQ Investment Management Company, LLC, Symphony Asset Management, LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010). Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative Investments, LLC. | |
Jon Scott Meissner 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President | 2019 | Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen (since 2017); Managing Director of Nuveen Fund Advisors, LLC (since 2019); Senior Director of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since 2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004. | |
Deann D. Morgan 1969 100 Park Avenue New York, NY 10016 | Vice President | 2020 | President, Nuveen Fund Advisors, LLC (since November 2020); Executive Vice President, Global Head of Product at Nuveen (since 2019); Co-Chief Executive Officer of Nuveen Securities, LLC (since March 2020); Managing Member MDR Collaboratory LLC (since 2018); Managing Director, Head of Wealth Management Product Structuring & COO Multi Asset Investing. The Blackstone Group (2013-2017). | |
Christopher M. Rohrbacher 1971 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Managing Director (since 2017) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2017), formerly, Senior Vice President (2016-2017), General Counsel (since 2020), formerly, Co-General Counsel (2019-2020) and Assistant Secretary (since 2016) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Senior Vice President (2012-2017) and Associate General Counsel (since 2016), formerly, Assistant General Counsel (2008-2016) of Nuveen. | |
William A. Siffermann 1975 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2017 | Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President (2011-2016) of Nuveen. |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed(2) | Principal Occupation(s) During Past 5 Years | |
E. Scott Wickerham 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 | Vice President and Controller | 2019 | Senior Managing Director, Head of Fund Administration at Nuveen, LLC (since 2019), formerly, Managing Director; Senior Managing Director (since 2019), Nuveen Fund Advisors, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the Treasurer (since 2017) to the CREF Accounts; Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions with TIAA since 2006. | |
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Chief Compliance Officer | 1988 | Managing Director (2002-2020) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (2002-2020), Assistant Secretary (1997-2020) and Co-General Counsel (2011-2020) of Nuveen Fund Advisors, LLC; Managing Director (2004-2020) and Assistant Secretary (1994-2020) of Nuveen Investments, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (2011-2020); Vice President (2017-2020) Managing Director (2003-2017) and Assistant Secretary (2003-2020) of Symphony Asset Management LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC (2006-2020) and of Winslow Capital Management, LLC (2010-2020); Chartered Financial Analyst. |
Serving Investors for Generations
ITEM 2. | CODE OF ETHICS. |
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/fund-governance. (To view the code, click on Code of Conduct.)
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
As of the end of the period covered by this report, the registrant’s Board of Directors or Trustees (“Board”) determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial experts are Carole E. Stone, Jack B. Evans and William C. Hunter, who are “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
Mr. Hunter was formerly a Senior Vice President at the Federal Reserve Bank of Chicago. As part of his role as Senior Vice President, Mr. Hunter was the senior officer responsible for all operations of each of the Economic Research, Statistics, and Community and Consumer Affairs units at the Federal Reserve Bank of Chicago. In such capacity, Mr. Hunter oversaw the subunits of the Statistics and Community and Consumer Affairs divisions responsible for the analysis and evaluation of bank and bank holding company financial statements and financial filings. Prior to serving as Senior Vice President at the Federal Reserve Bank of Chicago, Mr. Hunter was the Vice President of the Financial Markets unit at the Federal Reserve Bank of Atlanta where he supervised financial staff and bank holding company analysts who analyzed and evaluated bank and bank holding company financial statements. Mr. Hunter also currently serves on the Boards of Directors of Xerox Corporation and Wellmark, Inc. as well as on the Audit Committees of such Boards. As an Audit Committee member, Mr. Hunter’s responsibilities include, among other things, reviewing financial statements, internal audits and internal controls over financial reporting. Mr. Hunter also formerly was a Professor of Finance at the University of Connecticut School of Business and has authored numerous scholarly articles on the topics of finance, accounting and economics.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
The following tables show the amount of fees that KPMG LLP and PriceWaterHouseCoopers LLP, the Funds’ auditor, billed to the Funds’ during the Funds’ last two full fiscal years. The Audit Committee approved in advance all audit services and non-audit services that KPMG LLP and PriceWaterHouseCoopers LLP, provided to the Funds, 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 preapproval exception for services provided directly to the Funds 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 Funds during the fiscal year in which the services are provided; (B) the Funds 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 Chair (or, in her absence, any other member of the Audit Committee).
Fiscal Year Ended September 30, 2020 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 39,980 | 0 | 0 | 0 | ||||||||||||
Nuveen Preferred Securities and Income Fund | 29,900 | 0 | 0 | 0 | ||||||||||||
Nuveen NWQ Flexible Income Fund | 29,900 | 0 | 0 | 0 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Total | $ | 99,780 | $ | 0 | $ | 0 | $ | 0 |
1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Preferred Securities and Income Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen NWQ Flexible Income Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Fiscal Year Ended September 30, 2019 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 38,950 | 0 | 0 | 0 | ||||||||||||
Nuveen Preferred Securities and Income Fund | 29,320 | 0 | 0 | 0 | ||||||||||||
Nuveen NWQ Flexible Income Fund | 29,320 | 0 | 0 | 0 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Total | $ | 97,590 | $ | 0 | $ | 0 | $ | 0 |
1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Preferred Securities and Income Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen NWQ Flexible Income Fund | 0 | % | 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 September 30, 2020 | Affiliated Fund Service Providers | Affiliated Fund Service Providers | and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Trust V | $ | 0 | $ | 0 | $ | 0 | ||||||
Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund 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 September 30, 2019 | Affiliated Fund Service Providers | Affiliated Fund Service Providers | and Affiliated Fund Service Providers | |||||||||
Nuveen Investment Trust V | $ | 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 | % |
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 September 30, 2020 | Total Non-Audit Fees Billed to Funds | operations and financial reporting of the Funds) | Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Preferred Securities and Income Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen NWQ Flexible Income Fund | 0 | 0 | 0 | 0 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Total | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
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 September 30, 2019 | Total Non-Audit Fees Billed to Funds | operations and financial reporting of the Funds) | Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Gresham Managed Futures Strategy Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Preferred Securities and Income Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen NWQ Flexible Income Fund | 0 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Funds by the Funds’ independent accountant and (ii) all audit and non-audit services to be performed by the Funds’ independent accountant for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Funds. Regarding tax and research projects conducted by the independent accountant for the Funds 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 Chair for her 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. |
a) | See Portfolio of Investments in Item 1. |
b) | Not applicable. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to this registrant.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to this registrant.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to this registrant.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
File the exhibits listed below as part of this Form.
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 V
By (Signature and Title) | /s/ Mark J. Czarniecki | |
Mark J. Czarniecki | ||
Vice President and Secretary |
Date: December 4, 2020
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/ Christopher E. Stickrod | |
Christopher E. Stickrod | ||
Chief Administrative Officer | ||
(principal executive officer) |
Date: December 4, 2020
By (Signature and Title) | /s/ E. Scott Wickerham | |
E. Scott Wickerham | ||
Vice President and Controller | ||
(principal financial officer) |
Date: December 4, 2020