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

811-21579

 

Nuveen Floating Rate Income Opportunity Fund

(Exact name of registrant as specified in charter)

 

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606

(Address of principal executive offices) (Zip code)

 

Kevin J. McCarthy

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(312) 917-7700

 

 

Date of fiscal year end:

July 31

 

 

Date of reporting period:

July 31, 2014

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

 



 

ITEM 1. REPORTS TO STOCKHOLDERS.

 



Closed-End Funds

Nuveen Investments

Closed-End Funds

Annual Report July 31, 2014

NSL

Nuveen Senior Income Fund

JFR

Nuveen Floating Rate Income Fund

JRO

Nuveen Floating Rate Income Opportunity Fund

JSD

Nuveen Short Duration Credit Opportunities Fund

JQC

Nuveen Credit Strategies Income Fund



Nuveen Investments to be acquired by TIAA-CREF

On April 14, 2014, TIAA-CREF announced that it had entered into an agreement to acquire Nuveen Investments, the parent company of your fund's investment adviser, Nuveen Fund Advisors, LLC ("NFAL") and the Nuveen affiliates that act as sub-advisers to the majority of the Nuveen Funds. TIAA-CREF is a national financial services organization with approximately $569 billion in assets under management (as of March 31, 2014) and is a leading provider of retirement services in the academic, research, medical and cultural fields. Nuveen anticipates that it will operate as a separate subsidiary within TIAA-CREF's asset management business, and that its current leadership and key investment teams will stay in place.

Your fund investment will not change as a result of Nuveen's change of ownership. You will still own the same fund shares and the underlying value of those shares will not change as a result of the transaction. NFAL and your fund's sub-adviser(s) will continue to manage your fund according to the same objectives and policies as before, and we do not anticipate any significant changes to your fund's operations. Under the securities laws, the consummation of the transaction will result in the automatic termination of the investment management agreements between the funds and NFAL and the investment sub-advisory agreements between NFAL and each fund's sub-adviser(s). The new agreements have been approved by shareholders of your fund.

The transaction is currently expected to close early in the fourth quarter of 2014, but remains subject to customary closing conditions.



Table

of Contents

Chairman's Letter to Shareholders

   

4

   

Portfolio Managers' Comments

   

5

   

Fund Leverage

   

9

   

Common Share Information

   

10

   

Risk Considerations

   

12

   

Performance Overview and Holding Summaries

   

14

   

Shareholder Meeting Report

   

24

   

Report of Independent Registered Public Accounting Firm

   

25

   

Portfolios of Investments

   

26

   

Statement of Assets and Liabilities

   

76

   

Statement of Operations

   

77

   

Statement of Changes in Net Assets

   

78

   

Statement of Cash Flows

   

81

   

Financial Highlights

   

84

   

Notes to Financial Statements

   

91

   

Additional Fund Information

   

109

   

Glossary of Terms Used in this Report

   

111

   

Reinvest Automatically, Easily and Conveniently

   

112

   

Board Member & Officers

   

113

   

Annual Investment Management Agreement Approval Process

   

118

   

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3




Chairman's Letter

to Shareholders

Dear Shareholders,

After significant growth in 2013, domestic and international equity markets have been less compelling during the first part of 2014. Concerns about deflation, political uncertainty in many places and the potential for more fragile economies to impact other countries have produced uncertainty in the markets.

Europe is beginning to emerge slowly from the recession in mid-2013, with improved GDP and employment trends in some countries. However, Japan's deflationary headwinds have resurfaced; and China shows signs of slowing from credit distress combined with declines in manufacturing and exports. Most recently, tensions between Russia and Ukraine may continue to hold back stocks and support government bonds in the near term.

Despite these headwinds, there are some encouraging signs of forward momentum in the markets. In the U.S., the news is more positive with financial risks slowly receding, positive GDP trends, downward trending unemployment and stronger household finances and corporate spending.

It is in such changeable markets that professional investment management is most important. Investment teams who have experienced challenging markets in the past understand how their asset class can behave in rapidly changing times. Remaining committed to their investment disciplines during these times is a critical component to achieving long-term success. In fact, many strong investment track records are established during challenging periods because experienced investment teams understand that volatile markets place a premium on companies and investment ideas that can weather the short-term volatility. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.

As always, I encourage you to communicate with your financial consultant if you have any questions about your investment in a Nuveen Fund. 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.

William J. Schneider
Chairman of the Board
September 22, 2014

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4



Portfolio Managers'

Comments

Nuveen Senior Income Fund (NSL)

Nuveen Floating Rate Income Fund (JFR)

Nuveen Floating Rate Income Opportunity Fund (JRO)

Nuveen Short Duration Credit Opportunities Fund (JSD)

Nuveen Credit Strategies Income Fund (JQC)

The Funds' investment portfolios are managed by Symphony Asset Management, LLC (Symphony), an affiliate of Nuveen Investments, Inc. Gunther Stein, who serves as the firm's Chief Investment Officer, and Scott Caraher manage NSL, JFR and JRO. Gunther and Sutanto Widjaja manage JQC, while JSD is managed by Gunther, Scott and Jenny Rhee. Here they discuss the U.S. economy and equity markets, management strategies and the performance of the Funds during the twelve-month reporting period ended July 31, 2014.

What factors affected the U.S. economy and equity markets during the twelve-month reporting period ended July 31, 2014?

During this reporting period, the U.S. economy continued its advance toward recovery from recession. The Federal Reserve (Fed) maintained efforts to bolster growth and promote progress toward its mandates of maximum employment and price stability by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. Based on its view that the underlying strength in the broader economy was enough to support ongoing improvement in the labor market, the Fed began to reduce or taper its monthly asset purchases in $10 billion increments over the course of five consecutive meetings (December 2013 through June 2014). As of July 2014, the Fed's monthly purchases comprise $15 billion in mortgage backed securities (versus the original $40 billion per month) and $20 billion in longer-term Treasury securities (versus $45 billion). Following its June 2014 meeting the Fed reiterated that it would continue to look at a wide range of factors, including labor market conditions, indicators of inflationary pressures and readings on financial developments, in determining future actions, saying that it would likely maintain the current target range for the fed funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Fed's 2% longer-run goal.

In the second quarter of 2014, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew 4.2%. In the previous quarter, GDP contracted at an annualized rate of 2.1%, the economy's weakest quarter since the recession officially ended in June 2009. The decline during this period was attributed in part to the severe weather of the past winter, which deterred consumer spending and disrupted construction, production and shipping. The Consumer Price Index (CPI) rose 2.4% year-over-year as of July 2014, while the core CPI (which excludes food and energy) increased 1.9% during the same period, in line with the Fed's unofficial longer term objective of 2.0% for this inflation measure. As of July 2014, the national unemployment rate remained at 6.2%, down from the 7.3% reported in July 2013, but still higher

Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's (S&P), Moody's Investors Service, Inc. (Moody's) or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

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5



Portfolio Managers' Comments (continued)

than levels that would provide consistent support for optimal GDP growth. During the last twelve months, the unemployment rate and the number of unemployed persons have declined by 1.1% and 1.7 million, respectively. The housing market continued to post gains as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 8.1% for the twelve months ended July 2014.

Several events touched off increased volatility in the financial markets. First, in May 2013, then-Fed Chairman Ben Bernanke's remarks about tapering the Fed's asset purchase program triggered widespread uncertainty about the next step for the Fed's quantitative easing program and its impact on the markets as well as the overall economy. Meanwhile, political debate over federal spending continued, as Congress failed to reach an agreement on the federal budget for Fiscal 2014. On October 1, 2013, the start date for Fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law. (Consensus on a $1.1 trillion federal spending bill was ultimately reached in January 2014, and in February 2014, members of Congress agreed to suspend the $16.7 trillion debt ceiling until March 2015.)

Assets across the risk spectrum had a strong performance during the reporting period as nearly all major equity and credit markets posted positive returns. Lingering concerns surrounding harsh domestic weather, emerging market volatility and geopolitical tension between Russia and the West subsided as indexes repeatedly set all-time highs. The loan market moved cautiously higher in April before rallying more significantly in May and June as investors wrote off the drop in first quarter GDP as a temporary contraction; focusing instead on encouraging employment data, home sales figures and accommodative Fed policy statements.

After a streak of nine consecutive quarters of positive inflows, $5.8 billion left retail leveraged loan (loan) mutual funds during the second quarter of 2014 as concerns over rising interest rates abated. The impact of this quarter's outflows were offset by a record $39.3 billion of new collateralized loan obligation (CLO) issuance, which are often lower-rated corporate loans. This helped generate positive loan price appreciation. Loans continue to see demand from institutional and retail investors as well as CLOs. Year to date visible inflows from CLO issuance and retail loan funds total $63.2 billion and $1.8 billion, respectively. From a supply standpoint, second quarter gross loan new issuance slowed to $127.5 billion, with 77.6% of the proceeds used for acquisition and refinancing related activity as repricings notably fell from the prior period. Merger and acquisition activity has increased in the market, with acquisition related issuance totaling $48.7 billion during the quarter, the highest dollar amount since 2007. Three companies defaulted during the quarter, impacting $20.3 billion in loans. Of this, $20.0 billion belonged to the long-anticipated Chapter 11 filing of Energy Futures Holdings (also known as TXU). The portfolios did not own any of the issues that defaulted during the quarter. Excluding the TXU bankruptcy, the trailing twelve month par-weighted default rate is 1.4% which remains well below the 3.4% long-term historical average default rate.

What strategies were used to manage the Funds during the twelve-month reporting period ended July 31, 2014 and how did these strategies influence performance?

NSL, JFR and JRO have similar investment objectives and strategies. Each Fund is designed to seek a high level of current income by primarily investing in a portfolio of adjustable rate, senior secured corporate loans. The Funds also may invest in unsecured senior loans, other debt securities, equity securities and warrants acquired in connection with an investment in senior loans. A significant portion of each Fund's assets may be invested in instruments that, at the time of investment, are rated below investment grade or are unrated but judged by Symphony to be of comparable quality.

JSD seeks to provide current income and the potential for capital appreciation. The Fund invests primarily in a blended portfolio of below investment grade adjustable rate corporate debt instruments, including senior secured loans, second lien loans and other adjustable rate corporate debt instruments. The Fund may also make limited tactical investments in other types of debt instruments and may enter into tactical short positions consisting of primarily high yield debt. Under normal market conditions the Fund maintains a portfolio with an average duration that does not exceed two years.

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6



JQC invests at least 70% of its assets in senior secured and second lien loans and up to 30% of its assets opportunistically over the credit cycle in other types of securities across a company's capital structures. These other securities primarily include income-oriented securities such as high yield corporate and convertible bonds as well as common stocks. The Fund maintained exposure to senior loans during the reporting period, while tactically allocating between high yield corporate bonds, equity securities and convertible bonds. Exposure consisted of mainly U.S. issuers and was focused on companies that had high levels of tangible assets, predictable revenue streams, significant market share within their respective industries and positive free cash flow.

How did the Funds perform during this twelve-month reporting period ended July 31, 2014?

The tables in the Performance Overview and Holding Summaries section of this report provide total return performance for each Fund for the one-year, five-year, ten-year and/or since inception periods ended July 31, 2014. For the twelve-month reporting period ended July 31, 2014, NSL, JFR, JRO and JSD's total return on common share net asset value (NAV) outperformed the Barclays U.S. Aggregate Bond Index, while all the Funds outperformed the CSFB Leveraged Loan Index.

Loans in general performed well and exhibited relative stability during the reporting period, as the asset class was supported by continued demand for floating rate products from institutional investors and CLO new issuance.

The Funds' maintained exposure primarily to senior loans during the reporting period, which benefited performance. Exposure consisted of mainly U.S. issuers and was focused on companies that had high levels of tangible assets, predictable revenue streams, significant market share within their respective industries and positive free cash flow. The term loans and high yield bonds of Clear Channel Communications, Inc. (Clear Channel), a diversified media and entertainment company, continued to be strong performers for the Funds. Investors have rewarded these loans over the last two years as the company refinanced its shorter dated maturities and have reported improving earnings trends. Also contributing to the portfolios' performance were the loans of Golden Living, a health care company. During the reporting period, the lenders negotiated more favorable terms through an amendment of the credit agreement, securing a higher coupon on the loan in exchange for looser covenants. As a result, the loans rallied.

Although the Funds' portfolios have not owned the position since September 2013, the loans of J.C. Penney Company, a large retailer, detracted from performance due to headline risk from a prominent activist investor, disappointing sales figures and uncertainty over the search for a new CEO. The Funds were also negatively affected by positions in the loans of Sun Products Corporation, a cleaning products company that reported disappointing earnings results during November 2013. The exposure was pared down in late 2013 and completely removed from the portfolios in early 2014.

JSD was also hurt from small short exposures to Kohl's Corporation and The Kroger Company as both companies steadily improved throughout the reporting period. JSD continued to invest in credit default swaps, which were used to provide a benefit if particular bonds' credit quality worsened. The Fund does not hold other securities issued by the issuers referenced under these credit default swap contracts. These contracts had a negligible effect on performance.

Lastly JQC continued to benefit from the strong performance of risk assets during the reporting period. From an asset class standpoint, senior loans, high yield bonds and equity all contributed to portfolio returns. Within the asset classes, the Fund continues to favor sectors that generate recurring revenues and strong cash flows such as health care, media and telecommunications. The Fund also benefited from its allocation to high yield corporate bonds and equity securities.

There has been an increased focus on the structure of many senior loans in the market, including LIBOR floors. These are fairly recent developments and worthy of discussion. All of these Funds have owned, or currently own, loans with the LIBOR floor feature. The coupon on most senior loans consists of both LIBOR (usually 90-day U.S. LIBOR) plus a spread. For example, a senior loan might have a coupon structure of "LIBOR plus 400 basis points (bp)" in which the coupon consists of 90-day LIBOR, plus 400bp. Given today's relatively low LIBOR rate, however, many issuers have put in place

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7



Portfolio Managers' Comments (continued)

LIBOR floors to enhance the yield (and satisfy demand from investors) for newly issued loans. LIBOR floors, as the name suggests, put a "floor" on the reference LIBOR rate. LIBOR floors typically range from 150bp to 50bp. A loan with a LIBOR floor might have a structure of "LIBOR + 400bp with a 100bp LIBOR floor." In this example, the effective coupon is 5% (100bp + 400bp). As a result, as LIBOR rises from current levels, the yield on a senior loan with a LIBOR floor will not rise in lockstep until after the reference LIBOR rate exceeds the LIBOR floor. Although many loans have LIBOR floors, the asset class is one of the few that will float when interest rates begin to rise, we believe the senior loan asset class provides fixed income oriented investors with a potential safeguard from a secular rise in interest rates.

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8



Fund

Leverage

IMPACT OF THE FUNDS' LEVERAGE STRATEGY ON PERFORMANCE

One important factor impacting the returns of the Funds relative to their benchmarks was the Funds' use of leverage through the use of bank borrowings for NSL, JFR and JRO Variable Rate Term Preferred Shares. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share NAV and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. The Funds' use of leverage had a positive impact on performance during this reporting period.

The Funds also continued to use swap contracts to partially fix the interest cost of leverage, which as mentioned previously, the Funds use through bank borrowings. NSL's and JSD's swap contracts detracted modestly from overall Fund performance during this reporting period. JFR's, JRO's and JQC's swap contracts had an overall negligible impact on the Funds' performance during this reporting period.

As of July 31, 2014, the Funds' percentages of leverage are shown in the accompanying table.

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Effective Leverage*

   

36.95

%

   

37.00

%

   

36.96

%

   

30.18

%

   

30.27

%

 

Regulatory Leverage*

   

36.95

%

   

37.00

%

   

36.96

%

   

30.18

%

   

30.27

%

 

*  Effective leverage is a Fund's effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund's portfolio that increase the Fund's investment exposure. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

THE FUNDS' REGULATORY LEVERAGE

Bank Borrowings

The Funds employ regulatory leverage through the use of bank borrowings. As of July 31, 2014, the Funds have outstanding bank borrowings as shown in the accompanying table.

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Bank Borrowings

 

$

112,000,000

   

$

269,000,000

   

$

188,000,000

   

$

85,000,000

   

$

606,000,000

   

Refer to Notes to Financial Statements, Note 9—Borrowing Arrangements for further details.

Variable Rate Term Preferred Shares

During the current reporting period, NSL, JFR and JRO each refinanced a portion of their bank borrowings with the issuance of Variable Rate Term Preferred (VRTP) Shares. Each Fund's VRTP Shares were issued via private placement and are not publicly available. VRTP Shares feature a fixed short-term (three years) with floating rate dividends set monthly at a specified short-term index rate, plus a fixed spread. As of July 31, 2014, the Funds' outstanding VRTP Shares are as shown in the accompanying table.

   

NSL

 

JFR

 

JRO

 

VRTP Shares, at liquidation value

 

$

58,000,000

   

$

139,000,000

   

$

98,000,000

   

Refer to Notes to Financial Statements, Note 1—General Information and Significant Accounting Policies for further details on VRTP Shares.

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9



Common Share

Information

DISTRIBUTION INFORMATION

The following information regarding the Funds' distributions is current as of July 31, 2014. Each Fund's distribution levels may vary over time based on each Fund's investment activities and portfolio investment value changes.

During the current reporting period, each Fund's distributions to common shareholders were as shown in the accompanying table.

   

Per Common Share Amounts

 

Ex-Dividend Date

 

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

August 2013

 

$

0.0410

   

$

0.0700

   

$

0.0730

   

$

0.1260

   

$

0.0620

   

September

   

0.0390

     

0.0670

     

0.0690

     

0.1220

     

0.0580

   

October

   

0.0390

     

0.0670

     

0.0690

     

0.1220

     

0.0580

   

November

   

0.0390

     

0.0670

     

0.0690

     

0.1220

     

0.0580

   

December

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0545

   

January

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0545

   

Februrary

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0545

   

March

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0525

   

April

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0525

   

May

   

0.0360

     

0.0615

     

0.0645

     

0.1140

     

0.0525

   

June

   

0.0350

     

0.0600

     

0.0630

     

0.0970

     

0.0435

   

July 2014

   

0.0350

     

0.0600

     

0.0630

     

0.0970

     

0.0435

   

Short-Term Capital Gain*

   

     

     

   

$

0.0729

     

   

Long-Term Capital Gain*

   

     

     

   

$

0.2540

     

   

Current Distribution Rate**

   

6.02

%

   

6.14

%

   

6.10

%

   

6.40

%

   

5.77

%

 

*  Distribution paid in December 2013.

**  Current distribution rate is based on the Fund's current annualized monthly distribution divided by the Fund's current market price. The Fund's monthly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the fiscal year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.

Each Fund in this report seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund's net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.

As of July 31, 2014, JSD and JQC had zero UNII balances while the remaining three Funds had positive UNII balances for tax purposes. All of the Funds in this report had negative UNII balances for financial reporting purposes.

All monthly dividends paid by the Funds during the fiscal year ended July 31, 2014 were paid from net investment income, except for JQC. In certain future instances, a portion of each Fund's monthly distributions may be paid from sources or comprised of elements other than net investment income, including capital gains and/or a return of capital,

Nuveen Investments
10



and in such a case the shareholders will receive a notice to that effect. For fiscal year ended July 31, 2014, the annual distributions for JQC were sourced partly from realized gains. Annual distributions of $.6440 per share included $.0330 per share of capital gains or 5.1% of the total distributions. The composition and per share amounts of each Fund's monthly dividends for the fiscal year are presented in the Statement of Changes in Net Assets and Financial Highlights, respectively (for reporting purposes) and in Note 6 – Income Tax Information within the accompany Notes to Financial Statements (for income tax purposes), later in this report.

COMMON SHARE REPURCHASES

As of July 31, 2014, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired their common shares as shown in the accompanying table.

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Common Shares Cumulatively Repurchased and Retired

   

     

147,593

     

19,400

     

     

4,356,192

   

Common Shares Authorized for Repurchase

   

3,865,000

     

5,515,000

     

3,850,000

     

1,010,000

     

13,625,000

   

During the current reporting period, the Funds repurchased and retired shares at a weighted average price per share and a weighted average discount per share as shown in the accompanying table.

 

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Shares Repurchased and Retired

   

0

     

0

     

0

     

0

     

41,100

   

Weighted Average Price Per Common Share Repurchased and Retired

 

$

0

   

$

0

   

$

0

   

$

0

   

$

9.16

   

Weighted Average Discount Per Common Share Repurchased and Retired

   

0

%

   

0

%

   

0

%

   

0

%

   

11.17

%

 

COMMON SHARE EQUITY SHELF PROGRAMS

During the reporting period, the Funds were authorized to issue additional shares through their ongoing equity shelf programs. Under these programs, each Fund, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price or above the Fund's NAV per common share. Under the equity shelf programs, the Funds are authorized to issue the following number of additional common shares:

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Additional Common Shares Authorized

   

12,000,000

     

12,900,000

     

11,600,000

     

1,000,000

     

13,600,000

   

During the current reporting period, the following Funds sold common shares through their equity shelf programs at a weighted average premium to their NAV per common share as shown in the accompanying table.

   

JFR

 

JRO

 

Common Shares Sold through Equity Shelf Program

   

22,610

     

43,186

   

Weighted Average Premium to NAV per Common Share Sold

   

1.46

%

   

1.34

%

 

As of November 30, 2013, NSL's, JFR's and JRO's shelf offering registration statement is no longer effective. Therefore, the Funds may not issue additional common shares under their equity shelf programs until a new registration statement is effective.

OTHER COMMON SHARE INFORMATION

As of July 31, 2014, and during the current reporting period, the Funds' common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Common Share NAV

 

$

7.51

   

$

12.59

   

$

12.68

   

$

19.48

   

$

10.25

   

Common Share Price

 

$

6.98

   

$

11.72

   

$

12.40

   

$

18.20

   

$

9.05

   

Premium/(Discount) to NAV

   

(7.06

)%

   

(6.91

)%

   

(2.21

)%

   

(6.57

)%

   

(11.71

)%

 

12-Month Average Premium/(Discount) to NAV

   

(5.64

)%

   

(5.34

)%

   

(3.74

)%

   

(5.38

)%

   

(7.49

)%

 

Nuveen Investments
11



Risk

Considerations

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:

Investment, Market and Price Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the corporate securities owned by the Funds, which generally trade in the over-the-counter markets. Shares of closed-end investment companies like the Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.

Leverage Risk. The Funds' use of leverage creates the possibility of higher volatility for the Funds' per share NAV, market price and distributions. Leverage risk can be introduced through regulatory leverage (issuing preferred shares or debt borrowings at the Fund level) or through certain derivative investments held in a Fund's portfolio. Leverage typically magnifies the total return of a Fund's portfolio, whether that return is positive or negative. The use of leverage creates an opportunity for increased common share net income, but there is no assurance that a Fund's leveraging strategy will be successful.

Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.

Issuer Credit Risk. This is the risk that a security in a Fund's portfolio will fail to make dividend or interest payments when due.

Illiquid Securities Risk. This is the risk that a Fund may not be able to sell securities in its portfolio at the time or price desired by the Fund.

Preferred Stock Risk. Preferred stocks are subordinated to bonds and other debt instruments in a company's capital structure, and therefore are subject to greater credit risk.

Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower-yielding securities.

Counterparty Risk. To the extent that a Fund's derivative investments are purchased or sold in over-the-counter transactions, the Fund will be exposed to the risk that counter-parties to these transactions will be unable to meet their obligations.

Non-Investment Grade or Below-Investment Grade Risk. Investments in securities below investment grade quality are predominantly speculative and subject to greater volatility and risk of default.

Non-U.S. Securities Risk. Investments in non-U.S securities involve special risks not typically associated with domestic investments including currency risk and adverse political, social and economic development. These risks often are magnified in emerging markets.

Nuveen Investments
12



Unrated Investment Risk. In determining whether an unrated security is an appropriate investment for a Fund, the manager will consider information from industry sources, as well as its own quantitative and qualitative analysis, in making such a determination. However, such a determination by the manager is not the equivalent of a rating by a rating agency.

Interest Rate Swaps Risk. The risk that yields will move in the direction opposite to the direction anticipated by a Fund, which would cause a Fund to make payments to its counterparty in the transaction that could adversely affect the Fund's performance.

Senior Loan Risk. Senior loans, both secured and unsecured, may not be rated by a national rating agency at the time of investment, generally will not be registered with the Securities and Exchange Commission (SEC) and generally will not be listed on a securities exchange. In addition, the amount of public information available with respect to senior loans generally is less extensive than that available for more widely rated, registered and exchange-listed securities.

Risks from Unsecured Adjustable Rate Loans or Insufficient Collateral Securing Adjustable Rate Loans. Some of the adjustable rate loans in which a Fund may invest will be unsecured, thereby increasing the risk of loss to the Fund in the event of issuer default. Other adjustable rate loans may be secured by specific collateral, but there can be no assurance that liquidating this collateral would satisfy a borrower's obligation to the Fund in the event of borrower default, or that such collateral could be readily liquidated under such circumstances.

Derivatives Strategy Risk. Derivative securities, such as calls, puts, warrants, swaps and forwards, carry risks different from, and possibly greater than, the risks associated with the underlying investments.

Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.

Reinvestment Risk. If market interest rates decline, income earned from a Fund's portfolio may be reinvested at rates below that of the original investment that generated the income.

Nuveen Investments
13




NSL

Nuveen Senior Income Fund

Performance Overview and Holding Summaries as of July 31, 2014

Refer to Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of July 31, 2014

 

Average Annual

 

 

1-Year

 

5-Year

 

10-Year

 

NSL at Common Share NAV

   

6.78

%

   

13.38

%

   

6.67

%

 

NSL at Common Share Price

   

(0.29

)%

   

14.10

%

   

4.42

%

 

Barclays U.S. Aggregate Bond Index

   

3.97

%

   

4.47

%

   

4.80

%

 

CSFB Leveraged Loan Index

   

4.95

%

   

7.90

%

   

4.99

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses and assume reinvestment of distributions. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
14



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation

(% of net assets)

Variable Rate Senior Loan Interests

   

127.3

%

 

Common Stocks

   

2.6

%

 

Convertible Bonds

   

0.3

%

 

Corporate Bonds

   

19.7

%

 

Short-Term Investments

   

7.7

%

 

Borrowings

   

(38.6

)%

 

VRTP Shares, at Liquidation Value

   

(20.0

)%

 

Other Assets Less Liabilities

   

1.0

%

 

Top Five Issuers

(% of total long-term investments)1

Tribune Company

   

4.0

%

 

Clear Channel Communications, Inc.

   

3.6

%

 

Infor US Inc.

   

2.6

%

 
Valeant Pharmaceuticals
International, Inc.
   

2.1

%

 

Dell, Inc.

   

2.1

%

 

Portfolio Composition

(% of total investments)1

Media

   

15.6

%

 

Software

   

5.9

%

 

Pharmaceuticals

   

5.9

%

 

Food Products

   

5.3

%

 

Health Care Providers & Services

   

4.7

%

 

Diversified Consumer Services

   

4.6

%

 
Diversified Telecommunication
Services
   

4.5

%

 

Hotels, Restaurants & Leisure

   

4.2

%

 

Oil, Gas & Consumable Fuels

   

3.7

%

 

Health Care Equipment & Supplies

   

3.5

%

 

Semiconductors & Equipment

   

3.2

%

 

Commercial Services & Supplies

   

2.6

%

 

Computers & Peripherals

   

2.0

%

 

Wireless Telecommunication Services

   

2.0

%

 

Airlines

   

1.9

%

 

Food & Staples Retailing

   

1.9

%

 

IT Services

   

1.8

%

 

Chemicals

   

1.8

%

 

Energy Equipment & Services

   

1.7

%

 

Short-Term Investments

   

4.9

%

 

Other Industries

   

18.3

%

 

Credit Quality

(% of total investments)1

BBB

   

1.5

%

 

BB or Lower

   

90.5

%

 

N/R (not rated)

   

1.5

%

 

N/A (not applicable)

   

6.5

%

 

1  Excluding investments in derivatives.

Nuveen Investments
15



JFR

Nuveen Floating Rate Income Fund

Performance Overview and Holding Summaries as of July 31, 2014

Refer to Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of July 31, 2014

 

Average Annual

 

 

1-Year

 

5-Year

 

10-Year

 

JFR at Common Share NAV

   

6.62

%

   

12.42

%

   

6.22

%

 

JFR at Common Share Price

   

(1.84

)%

   

14.50

%

   

5.28

%

 

Barclays U.S. Aggregate Bond Index

   

3.97

%

   

4.47

%

   

4.80

%

 

CSFB Leveraged Loan Index

   

4.95

%

   

7.90

%

   

4.99

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses and assume reinvestment of distributions. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
16



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation

(% of net assets)

Variable Rate Senior Loan Interests

   

120.8

%

 

Common Stocks

   

2.8

%

 

Convertible Bonds

   

0.3

%

 

Corporate Bonds

   

18.6

%

 

Asset-Backed Securities

   

5.6

%

 

Investment Companies

   

1.7

%

 

Short-Term Investments

   

9.4

%

 

Borrowings

   

(38.7

)%

 

VRTP Shares, at Liquidation Value

   

(20.0

)%

 

Other Assets Less Liabilities

   

(0.5

)%

 

Top Five Issuers

(% of total long-term investments)1

Tribune Company

   

3.8

%

 

Clear Channel Communications, Inc.

   

3.3

%

 

Infor Us Inc.

   

1.9

%

 

Dell, Inc.

   

1.7

%

 

Univision Communications, Inc.

   

1.7

%

 

Portfolio Composition

(% of total investments)1

Media

   

15.5

%

 

Health Care Providers & Services

   

5.4

%

 

Software

   

5.4

%

 
Diversified Telecommunication
Services
   

4.8

%

 

Pharmaceuticals

   

4.6

%

 

Food Products

   

4.5

%

 

Oil, Gas & Consumable Fuels

   

3.8

%

 

Diversified Consumer Services

   

3.6

%

 

Hotels, Restaurants & Leisure

   

3.0

%

 

Wireless Telecommunication Services

   

2.9

%

 

Semiconductors & Equipment

   

2.8

%

 

Health Care Equipment & Supplies

   

2.6

%

 

Commercial Services & Supplies

   

2.4

%

 

Airlines

   

1.8

%

 

Automobiles

   

1.8

%

 

Chemicals

   

1.8

%

 

Food & Staples Retailing

   

1.8

%

 

Real Estate Investment Trust

   

1.6

%

 

Asset-Backed Securities

   

3.5

%

 

Investment Companies

   

1.0

%

 

Short-Term Investments

   

5.9

%

 

Other Industries

   

19.5

%

 

Credit Quality

(% of total investments)1

BBB

   

1.6

%

 

BB or Lower

   

87.5

%

 

N/R (not rated)

   

2.1

%

 

N/A (not applicable)

   

8.8

%

 

1  Excluding investments in derivatives.

Nuveen Investments
17



JRO

Nuveen Floating Rate Income Opportunity Fund

Performance Overview and Holding Summaries as of July 31, 2014

Refer to Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of July 31, 2014

 

Average Annual

 

 

1-Year

 

5-Year

 

10-Year

 

JRO at Common Share NAV

   

7.54

%

   

13.85

%

   

6.73

%

 

JRO at Common Share Price

   

3.91

%

   

16.51

%

   

6.33

%

 

Barclays U.S. Aggregate Bond Index

   

3.97

%

   

4.47

%

   

4.80

%

 

CSFB Leveraged Loan Index

   

4.95

%

   

7.90

%

   

4.99

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses and assume reinvestment of distributions. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
18



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation

(% of net assets)

Variable Rate Senior Loan Interests

   

122.0

%

 

Common Stocks

   

3.5

%

 

Convertible Bonds

   

0.3

%

 

Corporate Bonds

   

21.2

%

 

Asset-Backed Securities

   

5.3

%

 

Short-Term Investments

   

6.7

%

 

Borrowings

   

(38.5

)%

 

VRTP Shares, at Liquidation Value

   

(20.1

)%

 

Other Assets Less Liabilities

   

(0.4

)%

 

Top Five Issuers

(% of total long-term investments)1

Tribune Company

   

4.2

%

 

Clear Channel Communications, Inc.

   

4.0

%

 

Infor Us Inc.

   

1.9

%

 

Dell, Inc.

   

1.7

%

 

US Foods, Inc.

   

1.6

%

 

Portfolio Composition

(% of total investments)1

Media

   

18.0

%

 

Software

   

6.0

%

 

Pharmaceuticals

   

5.0

%

 

Food Products

   

4.7

%

 

Health Care Providers & Services

   

4.6

%

 
Diversified Telecommunication
Services
   

4.6

%

 

Diversified Consumer Services

   

4.1

%

 

Oil, Gas & Consumable Fuels

   

3.7

%

 

Wireless Telecommunication Services

   

3.0

%

 

Semiconductors & Equipment

   

2.9

%

 

Hotels, Restaurants & Leisure

   

2.9

%

 

Health Care Equipment & Supplies

   

2.8

%

 

Commercial Services & Supplies

   

2.4

%

 

Automobiles

   

2.2

%

 

Airlines

   

1.8

%

 

Real Estate Investment Trust

   

1.8

%

 

Food & Staples Retailing

   

1.7

%

 

Computers & Peripherals

   

1.7

%

 

Asset-Backed Securities

   

3.3

%

 

Short-Term Investments

   

4.2

%

 

Other Industries

   

18.6

%

 

Credit Quality

(% of total investments)1

BBB

   

1.4

%

 

BB or Lower

   

89.9

%

 

N/R (not rated)

   

2.3

%

 

N/A (not applicable)

   

6.4

%

 

1  Excluding investments in derivatives.

Nuveen Investments
19



JSD

Nuveen Short Duration Credit Opportunities Fund

Performance Overview and Holding Summaries as of July 31, 2014

Refer to Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of July 31, 2014

 

Average Annual

 

 

1-Year

  Since
Inception1
 

JSD at Common Share NAV

   

6.59

%

   

8.83

%

 

JSD at Common Share Price

   

0.16

%

   

5.24

%

 

Barclays U.S. Aggregate Bond Index

   

3.97

%

   

3.40

%

 

CSFB Leveraged Loan Index

   

4.95

%

   

5.24

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses and assume reinvestment of distributions. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
20



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation

(% of net assets)

Variable Rate Senior Loan Interests

   

115.1

%

 

Common Stocks

   

0.7

%

 

Corporate Bonds

   

19.2

%

 

Short-Term Investments

   

10.6

%

 

Borrowings

   

(43.2

)%

 

Other Assets Less Liabilities

   

(2.4

)%

 

Top Five Issuers

(% of total long-term investments)2

Clear Channel Communications, Inc.

   

3.4

%

 
Valeant Pharmaceuticals
International, Inc.
   

3.0

%

 

Infor Us Inc.

   

2.6

%

 

Delta Air Lines, Inc.

   

2.3

%

 

Dell, Inc.

   

1.9

%

 

Portfolio Composition

(% of total investments)2

Media

   

10.1

%

 

Pharmaceuticals

   

7.5

%

 

Health Care Providers & Services

   

7.2

%

 

Software

   

6.8

%

 

Diversified Consumer Services

   

4.6

%

 

Oil, Gas & Consumable Fuels

   

4.5

%

 
Diversified Telecommunication
Services
   

4.3

%

 

Health Care Equipment & Supplies

   

4.1

%

 

Food Products

   

3.5

%

 

IT Services

   

2.9

%

 

Airlines

   

2.8

%

 

Wireless Telecommunication Services

   

2.7

%

 

Commercial Services & Supplies

   

2.6

%

 

Hotels, Restaurants & Leisure

   

2.6

%

 

Food & Staples Retailing

   

2.2

%

 

Leisure Equipment & Products

   

2.0

%

 

Real Estate Investment Trust

   

1.8

%

 

Computers & Peripherals

   

1.7

%

 

Short-Term Investments

   

7.3

%

 

Other Industries

   

18.8

%

 

Credit Quality

(% of total investments)2

BBB

   

0.5

%

 

BB or Lower

   

90.3

%

 

N/R (not rated)

   

1.4

%

 

N/A (not applicable)

   

7.8

%

 

1  Since inception returns are from 5/25/11.

2  Excluding investments in derivatives.

Nuveen Investments
21



JQC

Nuveen Credit Strategies Income Fund

Performance Overview and Holding Summaries as of July 31, 2014

Refer to Glossary of Terms Used in this Report for further definition of the terms used within this section.

Average Annual Total Returns as of July 31, 2014

 

Average Annual

 

 

1-Year

 

5-Year

 

10-Year

 

JQC at Common Share NAV

   

7.74

%

   

13.94

%

   

4.96

%

 

JQC at Common Share Price

   

(3.44

)%

   

16.87

%

   

5.27

%

 

CSFB Leveraged Loan Index

   

4.95

%

   

7.90

%

   

4.99

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses and assume reinvestment of distributions. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
22



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Fund Allocation

(% of net assets)

Variable Rate Senior Loan Interests

   

107.5

%

 

Common Stocks

   

7.1

%

 

Convertible Bonds

   

0.7

%

 

Corporate Bonds

   

21.5

%

 

Structured Notes

   

2.0

%

 

Short-Term Investments

   

7.8

%

 

Borrowings

   

(43.4

)%

 

Other Assets Less Liabilities

   

(3.2

)%

 

Top Five Issuers

(% of total long-term investments)1

Clear Channel Communications, Inc.

   

2.8

%

 

Community Health Systems, Inc.

   

2.6

%

 

WideOpenWest Finance

   

2.4

%

 

Delta Air Lines, Inc.

   

2.3

%

 

BMC Software, Inc.

   

2.2

%

 

Portfolio Composition

(% of total investments)1

Media

   

10.7

%

 

Software

   

9.3

%

 

Pharmaceuticals

   

6.6

%

 

Health Care Equipment & Supplies

   

6.0

%

 
Diversified Telecommunication
Services
   

5.0

%

 

Health Care Providers & Services

   

4.6

%

 

Diversified Consumer Services

   

4.1

%

 

Food Products

   

3.5

%

 

Semiconductors & Equipment

   

3.2

%

 

Chemicals

   

3.1

%

 

Real Estate Investment Trust

   

2.6

%

 

Internet Software & Services

   

2.5

%

 

Airlines

   

2.5

%

 

Commercial Services & Supplies

   

2.5

%

 

Hotels, Restaurants & Leisure

   

2.2

%

 

Wireless Telecommunication Services

   

2.1

%

 

Trading Companies & Distributors

   

1.8

%

 

Food & Staples Retailing

   

1.9

%

 

Structured Notes

   

1.3

%

 

Short-Term Investments

   

5.3

%

 

Other Industries

   

19.2

%

 

Credit Quality

(% of total investments)1

BBB

   

2.5

%

 

BB or Lower

   

85.6

%

 

N/R (not rated)

   

0.4

%

 

N/A (not applicable)

   

11.5

%

 

1  Excluding investments in derivatives.

Nuveen Investments
23




Shareholder

Meeting Report

The annual meeting of shareholders was held in the offices of Nuveen Investments on April 11, 2014 for JQC; at this meeting the shareholders were asked to vote on the election of Board Members.

   

JQC

 
    Common
Shares
 

Approval of the Board Members was reached as follows:

 

William Adams IV

 

For

   

95,844,804

   

Withhold

   

2,603,752

   

Total

   

98,448,556

   

David J. Kundert

 

For

   

95,799,168

   

Withhold

   

2,649,388

   

Total

   

98,448,556

   

John K. Nelson

 

For

   

95,760,814

   

Withhold

   

2,687,742

   

Total

   

98,448,556

   

Terence J. Toth

 

For

   

95,791,646

   

Withhold

   

2,656,910

   

Total

   

98,448,556

   

Nuveen Investments
24



Report of

Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders

Nuveen Senior Income Fund

Nuveen Floating Rate Income Fund

Nuveen Floating Rate Income Opportunity Fund

Nuveen Short Duration Credit Opportunities Fund

Nuveen Credit Strategies Income Fund

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Senior Income Fund, Nuveen Floating Rate Income Fund, Nuveen Floating Rate Income Opportunity Fund, Nuveen Short Duration Credit Opportunities Fund, and Nuveen Credit Strategies Income Fund (the "Funds") as of July 31, 2014, and the related statements of operations and cash flows for the year then ended, and the statements of changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the custodian, counterparties, selling or agent banks, and brokers or by other appropriate auditing procedures where replies from selling or agent banks and brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Senior Income Fund, Nuveen Floating Rate Income Fund, Nuveen Floating Rate Income Opportunity Fund, Nuveen Short Duration Credit Opportunities Fund, and Nuveen Credit Strategies Income Fund at July 31, 2014, and the results of their operations and their cash flows for the year then ended, and the changes in their net assets and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Chicago, Illinois
September 25, 2014

Nuveen Investments
25




NSL

Nuveen Senior Income Fund

Portfolio of Investments  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

LONG-TERM INVESTMENTS – 149.9% (95.1% of Total Investments)

 
   

VARIABLE RATE SENIOR LOAN INTERESTS – 127.3% (80.8% of Total Investments) (4)

 
   

Aerospace & Defense – 0.5% (0.3% of Total Investments)

 

$

1,478

   

Sequa Corporation, Term Loan B

   

5.250

%

 

6/19/17

 

B

 

$

1,461,802

   
   

Airlines – 3.0% (1.9% of Total Investments)

 
  1,478    

American Airlines, Inc., Term Loan

   

3.750

%

 

6/27/19

 

Ba2

   

1,481,081

   
  3,935    

Delta Air Lines, Inc., Term Loan B1

   

3.250

%

 

10/18/18

 

Ba1

   

3,932,099

   
  985    

Delta Air Lines, Inc., Term Loan B2

   

2.403

%

 

4/18/16

 

Ba1

   

987,326

   
  2,475    

US Airways, Inc., Term Loan B1

   

3.500

%

 

5/23/19

 

Ba2

   

2,465,719

   
  8,873    

Total Airlines

                           

8,866,225

   
   

Automobiles – 2.7% (1.7% of Total Investments)

 
  3,491    

Chrysler Group LLC, Tranche B, Term Loan

   

3.250

%

 

12/31/18

 

BB+

   

3,480,951

   
  3,341    

Formula One Group, Term Loan, First Lien, WI/DD

 

TBD

 

TBD

 

B

   

3,316,898

   
  1,000    

Formula One Group, Term Loan, Second Lien, WI/DD

 

TBD

 

TBD

 

CCC+

   

1,002,500

   
  7,832    

Total Automobiles

                           

7,800,349

   
   

Building Products – 1.1% (0.7% of Total Investments)

 
  1,600    

Gates Global LLC, Term Loan

   

4.250

%

 

7/03/21

 

B+

   

1,591,858

   
  1,489    

Quikrete Holdings, Inc., Term Loan, First Lien

   

4.000

%

 

9/28/20

 

B+

   

1,491,010

   
  3,089    

Total Building Products

                           

3,082,868

   
   

Capital Markets – 1.1% (0.7% of Total Investments)

 
  1,489    

Guggenheim Partners LLC, Initial Term Loan

   

4.250

%

 

7/22/20

 

N/R

   

1,489,680

   
  1,786    

RPI Finance Trust, Term Loan B3

   

3.250

%

 

11/09/18

 

Baa2

   

1,790,540

   
  3,275    

Total Capital Markets

                           

3,280,220

   
   

Chemicals – 2.8% (1.8% of Total Investments)

 
  1,877    

Ineos US Finance LLC, Cash Dollar, Term Loan

   

3.750

%

 

5/04/18

 

BB–

   

1,870,228

   
  4,000    

Mineral Technologies, Inc., Term Loan B, First Lien

   

4.000

%

 

5/07/21

 

BB

   

4,019,968

   
  985    

PQ Corporation, Term Loan B

   

4.000

%

 

8/07/17

 

B+

   

987,001

   
  1,428    

Univar, Inc., Term Loan

   

5.000

%

 

6/30/17

 

B+

   

1,431,614

   
  8,290    

Total Chemicals

                           

8,308,811

   
   

Commercial Services & Supplies – 3.8% (2.4% of Total Investments)

 
  514    

CCS Income Trust, Term Loan, First Lien

   

6.250

%

 

5/12/18

 

B–

   

516,514

   
  746    

Education Management LLC, Tranche C2, Term Loan

   

4.250

%

 

6/01/16

 

CCC–

   

491,025

   
  489    

HMH Holdings, Inc., Term Loan, First Lien

   

4.250

%

 

5/22/18

 

B1

   

491,194

   
  1,500    

International Lease Finance Corp., Term Loan

   

3.500

%

 

3/06/21

 

Ba1

   

1,499,732

   
  2,421    

iQor US, Inc., Term Loan, First Lien

   

6.000

%

 

4/01/21

 

B

   

2,329,861

   
  750    

iQor US, Inc., Term Loan, Second Lien

   

9.750

%

 

4/01/22

 

CCC+

   

714,375

   
  5,000    

Millennium Laboratories, Inc., Tranche B, Term Loan

   

5.250

%

 

4/16/21

 

B+

   

5,016,625

   
  11,420    

Total Commercial Services & Supplies

                           

11,059,326

   
   

Communications Equipment – 1.2% (0.8% of Total Investments)

 
  3,226    

Avaya, Inc., Term Loan B3

   

4.727

%

 

10/26/17

 

B1

   

3,128,598

   
  497    

Avaya, Inc., Term Loan B6

   

6.500

%

 

3/31/18

 

B1

   

494,907

   
  3,723    

Total Communications Equipment

                           

3,623,505

   

Nuveen Investments
26



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Computers & Peripherals – 3.1% (2.0% of Total Investments)

 

$

8,933

   

Dell, Inc., Term Loan B

   

4.500

%

 

4/29/20

 

BB+

 

$

8,958,072

   
   

Diversified Consumer Services – 6.6% (4.2% of Total Investments)

 
  3,365    

Cengage Learning Acquisitions, Inc., Exit Term Loan

   

7.000

%

 

3/31/20

 

B+

   

3,393,872

   
  2,978    

Harland Clarke Holdings Corporation, Term Loan B3

   

7.000

%

 

5/22/18

 

B+

   

3,033,169

   
  7,342    

Hilton Hotels Corporation, Term Loan B2

   

3.500

%

 

10/25/20

 

BB+

   

7,317,250

   
  1,931    

Laureate Education, Inc., Term Loan B

   

5.000

%

 

6/15/18

 

B

   

1,878,313

   
  1,769    

New Albertson's, Inc., Term Loan

   

4.750

%

 

6/24/21

 

Ba3

   

1,776,741

   
  1,679    

ServiceMaster Company, Term Loan

   

4.250

%

 

7/01/21

 

B+

   

1,670,430

   
  19,064    

Total Diversified Consumer Services

                           

19,069,775

   
   

Diversified Financial Services – 1.9% (1.2% of Total Investments)

 
  1,980    

Home Loan Servicing Solutions, Ltd., Term Loan B

   

4.500

%

 

6/26/20

 

BB–

   

1,989,282

   
  1,975    

Ocwen Financial Corporation, Term Loan B

   

5.000

%

 

2/15/18

 

B+

   

1,983,394

   
  1,500    

RCS Capital, Term Loan

   

6.500

%

 

4/29/19

 

B+

   

1,527,188

   
  5,455    

Total Diversified Financial Services

                           

5,499,864

   
   

Diversified Telecommunication Services – 5.0% (3.2% of Total Investments)

 
  867    

Greeneden U.S. Holdings II LLC, Term Loan B

   

4.000

%

 

2/08/20

 

B

   

861,599

   
  1,667    

Level 3 Financing, Inc., Term Loan, Tranche B3

   

4.000

%

 

8/01/19

 

BB

   

1,663,282

   
  669    

Presidio, Inc., Term Loan B

   

5.000

%

 

3/31/17

 

B+

   

672,591

   
  1,000    

SBA Communication, Incremental Term Loan, Tranche B1

   

3.250

%

 

3/24/21

 

BB

   

991,250

   
  1,000    

TelX Group, Inc., Initial Term Loan, First Lien

   

4.500

%

 

4/09/20

 

B1

   

1,000,000

   
  500    

TelX Group, Inc., Initial Term Loan, Second Lien

   

7.500

%

 

4/09/21

 

CCC

   

500,625

   
  3,926    

WideOpenWest Finance LLC, Term Loan B

   

4.750

%

 

4/01/19

 

Ba3

   

3,944,113

   
  1,849    

Ziggo N.V., Term Loan B1, DD1

   

3.250

%

 

1/15/22

 

BB–

   

1,819,882

   
  1,191    

Ziggo N.V., Term Loan B2, DD1

   

3.250

%

 

1/15/22

 

BB–

   

1,172,766

   
  1,960    

Ziggo N.V., Term Loan B3, Delayed Draw WI/DD

 

TBD

 

TBD

 

BB–

   

1,928,782

   
  14,629    

Total Diversified Telecommunication Services

                           

14,554,890

   
   

Electronic Equipment & Instruments – 0.5% (0.4% of Total Investments)

 
  1,620    

SMART Modular Technologies, Inc., Term Loan B

   

8.250

%

 

8/26/17

 

B

   

1,611,722

   
   

Energy Equipment & Services – 2.6% (1.6% of Total Investments)

 
  4,128    

Drill Rigs Holdings, Inc., Tranche B1, Term Loan

   

6.000

%

 

3/31/21

 

B+

   

4,169,574

   
  741    

Dynamic Energy Services International LLC, Term Loan

   

9.500

%

 

3/06/18

 

B–

   

736,922

   
  1,082    

Offshore Group Investment Limited, Term Loan B

   

5.000

%

 

10/25/17

 

B–

   

1,078,619

   
  1,485    

Pacific Drilling S.A., Term Loan B

   

4.500

%

 

6/03/18

 

B+

   

1,490,569

   
  7,436    

Total Energy Equipment & Services

                           

7,475,684

   
   

Food & Staples Retailing – 3.0% (1.9% of Total Investments)

 
  2,480    

Albertson's LLC, Term Loan B2

   

4.750

%

 

3/21/19

 

BB–

   

2,495,755

   
  2,379    

BJ's Wholesale Club, Inc., Replacement Loan, First Lien

   

4.500

%

 

9/26/19

 

B–

   

2,377,760

   
  2,000    

BJ's Wholesale Club, Inc., Replacement Loan, Second Lien

   

8.500

%

 

3/26/20

 

CCC

   

2,031,876

   
  750    

Rite Aid Corporation, Tranche 2, Term Loan, Second Lien

   

4.875

%

 

6/21/21

 

B

   

758,672

   
  981    

Supervalu, Inc., New Term Loan

   

4.500

%

 

3/21/19

 

B+

   

980,714

   
  8,590    

Total Food & Staples Retailing

                           

8,644,777

   
   

Food Products – 8.4% (5.3% of Total Investments)

 
  7,973    

H.J Heinz Company, Term Loan B2

   

3.500

%

 

6/05/20

 

BB

   

7,983,196

   
  1,000    

Hearthside Group Holdings, Term Loan, First Lien

   

4.500

%

 

6/02/21

 

B1

   

1,003,333

   
  4,000    

Jacobs Douwe Egberts, Term Loan B WI/DD

 

TBD

 

TBD

 

BB

   

3,950,000

   
  2,175    

Pinnacle Foods Finance LLC, Term Loan G

   

3.250

%

 

4/29/20

 

BB

   

2,161,660

   
  5,816    

US Foods, Inc., Incremental Term Loan

   

4.500

%

 

3/31/19

 

B2

   

5,819,686

   
  3,600    

Wilton Products, Inc., Tranche B, Term Loan

   

7.500

%

 

8/30/18

 

B–

   

3,456,173

   
  24,564    

Total Food Products

                           

24,374,048

   

Nuveen Investments
27



NSL  Nuveen Senior Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Health Care Equipment & Supplies – 3.0% (1.9% of Total Investments)

 

$

1,294

   

Ardent Medical Services, Inc., Term Loan, First Lien

   

6.750

%

 

7/02/18

 

B+

 

$

1,300,539

   
  714    

Ardent Medical Services, Inc., Term Loan, Second Lien

   

11.000

%

 

1/02/19

 

CCC+

   

718,452

   
  1,007    

ConvaTec, Inc., Dollar Term Loan

   

4.000

%

 

12/22/16

 

Ba3

   

1,009,259

   
  1,145    

Kinetic Concepts, Inc., Term Loan D1

   

4.000

%

 

5/04/18

 

BB–

   

1,146,036

   
  3,686    

Onex Carestream Finance LP, Term Loan, First Lien

   

5.000

%

 

6/07/19

 

B+

   

3,696,060

   
  973    

Onex Carestream Finance LP, Term Loan, Second Lien

   

9.500

%

 

12/07/19

 

B–

   

991,894

   
  8,819    

Total Health Care Equipment & Supplies

                           

8,862,240

   
   

Health Care Providers & Services – 5.3% (3.3% of Total Investments)

 
  313    

BioScrip, Inc., Delayed Draw, Term Loan

   

6.500

%

 

7/31/20

 

B1

   

317,559

   
  522    

BioScrip, Inc., Initial Term Loan B

   

6.500

%

 

7/31/20

 

B1

   

529,266

   
  1,508    

Community Health Systems, Inc., Term Loan D

   

4.250

%

 

1/27/21

 

BB

   

1,513,415

   
  6    

Community Health Systems, Inc., Term Loan E

   

3.478

%

 

1/25/17

 

BB

   

5,737

   
  2,324    

DaVita HealthCare Partners, Inc., Tranche B, Term Loan

   

3.500

%

 

6/24/21

 

Ba1

   

2,324,614

   
  3,762    

Drumm Investors LLC, Term Loan

   

6.750

%

 

5/04/18

 

B

   

3,771,189

   
  586    

Genesis Healthcare LLC, Term Loan

   

10.000

%

 

12/04/17

 

B

   

598,304

   
  985    

Heartland Dental Care, Inc., Term Loan, First Lien

   

5.500

%

 

12/21/18

 

B1

   

990,352

   
  500    

Heartland Dental Care, Inc., Term Loan, Second Lien

   

9.750

%

 

6/21/19

 

CCC+

   

512,188

   
  868    

LHP Operations Co. LLC, Term Loan B

   

9.000

%

 

7/03/18

 

B–

   

831,516

   
  348    

Mallinckrodt International Finance SA, Initial Term Loan B

   

3.500

%

 

3/19/21

 

BB+

   

346,197

   
  542    

National Mentor Holdings, Inc., Term Loan B

   

4.750

%

 

1/31/21

 

B1

   

544,766

   
  2,487    

One Call Care Management, Inc., Term Loan B

   

5.000

%

 

11/27/20

 

B1

   

2,494,652

   
  493    

Skilled Healthcare Group, Inc., Term Loan

   

7.000

%

 

4/09/16

 

B

   

493,307

   
  15,244    

Total Health Care Providers & Services

                           

15,273,062

   
   

Health Care Technology – 0.8% (0.5% of Total Investments)

 
  2,350    

Catalent Pharma Solutions, Inc., Term Loan

   

4.500

%

 

5/20/21

 

BB–

   

2,362,669

   
   

Hotels, Restaurants & Leisure – 6.1% (3.9% of Total Investments)

 
  1,386    

Caesars Entertainment Operating Company, Inc., Term Loan B6

   

6.963

%

 

1/28/18

 

Caa1

   

1,294,299

   
  3,668    

CCM Merger, Inc., Term Loan

   

6.000

%

 

3/01/17

 

B+

   

3,672,520

   
  2,955    

CityCenter Holdings LLC, Term Loan

   

4.250

%

 

10/24/20

 

B

   

2,966,192

   
  1,050    

Extended Stay America, Inc., Term Loan

   

5.000

%

 

6/24/19

 

B+

   

1,065,750

   
  1,493    

Intrawest Resorts Holdings, Inc., Initial Term Loan

   

5.500

%

 

12/09/20

 

B+

   

1,522,350

   
  908    

Landry's Restaraunts, Inc., Term Loan B

   

4.000

%

 

4/24/18

 

BB–

   

911,176

   
  1,478    

MGM Resorts International, Term Loan B

   

3.500

%

 

12/20/19

 

BB

   

1,470,729

   
  1,990    

Scientific Games Corporation, Term Loan B

   

4.250

%

 

10/18/20

 

BB–

   

1,964,592

   
  942    

Seaworld Parks and Entertainment, Inc., Term Loan B2

   

3.000

%

 

5/14/20

 

BB+

   

929,506

   
  1,913    

Station Casino LLC, Term Loan B

   

4.250

%

 

3/02/20

 

B1

   

1,915,026

   
  17,783    

Total Hotels, Restaurants & Leisure

                           

17,712,140

   
   

Household Durables – 0.2% (0.1% of Total Investments)

 
  485    

Serta Simmons Holdings LLC, Term Loan

   

4.250

%

 

10/01/19

 

B+

   

485,647

   
   

Household Products – 0.1% (0.0% of Total Investments)

 
  186    

Spectrum Brands, Inc., Term Loan C

   

3.500

%

 

9/04/19

 

BB

   

185,725

   
   

Industrial Conglomerates – 0.5% (0.3% of Total Investments)

 
  1,493    

Brand Energy & Infrastructure Services, Inc., Initial Term Loan

   

4.750

%

 

11/26/20

 

B1

   

1,495,431

   
   

Insurance – 2.2% (1.4% of Total Investments)

 
  738    

Alliant Holdings I LLC, Initial Term Loan B, First Lien

   

4.250

%

 

12/20/19

 

B1

   

739,389

   
  2,731    

Hub International Holdings, Inc., Initial Term Loan

   

4.250

%

 

10/02/20

 

B1

   

2,727,618

   
  2,960    

USI Holdings Corporation, Initial Term Loan

   

4.250

%

 

12/27/19

 

B1

   

2,964,450

   
  6,429    

Total Insurance

                           

6,431,457

   

Nuveen Investments
28



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Internet Software & Services – 0.5% (0.3% of Total Investments)

 

$

496

   

Sabre Inc., Term Loan B2

   

4.500

%

 

2/19/19

 

Ba3

 

$

497,129

   
  116    

Sabre Inc., Term Loan C

   

4.000

%

 

2/18/18

 

Ba3

   

116,271

   
  739    

Sabre Inc., Term Loan

   

4.250

%

 

2/18/19

 

Ba3

   

737,750

   
  1,351    

Total Internet Software & Services

                           

1,351,150

   
   

IT Services – 2.9% (1.9% of Total Investments)

 
  4,422    

EIG Investors Corp., Term Loan

   

5.000

%

 

11/09/19

 

B

   

4,444,239

   
  1,750    

Vantiv, Inc., Term Loan B

   

3.750

%

 

6/13/21

 

BB+

   

1,758,750

   
  1,153    

VFH Parent LLC, New Term Loan

   

5.750

%

 

11/08/19

 

N/R

   

1,142,523

   
  1,106    

Zayo Group LLC, Term Loan B

   

4.000

%

 

7/02/19

 

B1

   

1,102,245

   
  8,431    

Total IT Services

                           

8,447,757

   
   

Leisure Equipment & Products – 2.0% (1.3% of Total Investments)

 
  2,000    

24 Hour Fitness Worldwide, Inc., Term Loan B

   

4.750

%

 

5/28/21

 

Ba3

   

2,009,362

   
  2,017    

Bombardier Recreational Products, Inc., Term Loan

   

4.000

%

 

1/30/19

 

B+

   

2,014,621

   
  1,185    

Equinox Holdings, Inc., New Initial Term Loan B

   

4.250

%

 

1/31/20

 

Ba3

   

1,189,444

   
  500    

Four Seasons Holdings, Inc., Term Loan, Second Lien

   

6.250

%

 

12/27/20

 

B–

   

505,625

   
  5,702    

Total Leisure Equipment & Products

                           

5,719,052

   
   

Machinery – 1.3% (0.8% of Total Investments)

 
  3,167    

Doosan Infracore International, Inc., Term Loan

   

4.500

%

 

5/27/21

 

BB–

   

3,183,792

   
  503    

Rexnord LLC, Term Loan B

   

4.000

%

 

8/21/20

 

BB–

   

502,767

   
  3,670    

Total Machinery

                           

3,686,559

   
   

Media – 19.0% (12.0% of Total Investments)

 
  58    

Advantage Sales & Marketing, Inc., Delayed Draw, Term Loan WI/DD

 

TBD

 

TBD

 

B1

   

57,868

   
  1,742    

Advantage Sales & Marketing, Inc., Term Loan, First Lien

   

4.250

%

 

7/11/21

 

B1

   

1,736,025

   
  950    

Advantage Sales & Marketing, Inc., Term Loan, Second Lien, DD1

   

7.500

%

 

7/11/22

 

CCC+

   

954,354

   
  814    

Affinion Group Holdings, Inc., Initial Term Loan, Second Lien

   

8.500

%

 

10/31/18

 

B3

   

804,006

   
  582    

Affinion Group Holdings, Inc., Term Loan, First Lien

   

6.750

%

 

4/30/18

 

B1

   

578,084

   
  1,500    

Catalina Marketing Corporation, Term Loan, First Lien

   

4.500

%

 

4/09/21

 

B+

   

1,503,750

   
  1,000    

Catalina Marketing Corporation, Term Loan, Second Lien

   

7.750

%

 

4/11/22

 

CCC+

   

997,500

   
  1,363    

Clear Channel Communications, Inc., Tranche D, Term Loan

   

6.905

%

 

1/30/19

 

CCC+

   

1,341,707

   
  2,611    

Clear Channel Communications, Inc. Term Loan E

   

7.655

%

 

7/30/19

 

CCC+

   

2,612,774

   
  6,499    

Cumulus Media, Inc., Term Loan B

   

4.250

%

 

12/23/20

 

B+

   

6,520,027

   
  1,363    

Emerald Expositions Holdings, Inc., Term Loan, First Lien

   

4.750

%

 

6/17/20

 

BB–

   

1,372,058

   
  500    

Gray Television, Inc., Initial Term Loan

   

3.750

%

 

6/13/21

 

BB

   

500,860

   
  1,000    

IMG Worldwide, Inc., First Lien

   

5.250

%

 

5/06/21

 

B1

   

995,417

   
  2,250    

Interactive Data Corporation, Term Loan B

   

4.750

%

 

5/02/21

 

B+

   

2,261,954

   
  1,690    

McGraw-Hill Education Holdings LLC, Refinancing Term Loan

   

5.750

%

 

3/22/19

 

B+

   

1,708,574

   
  928    

Media General, Inc., Delayed Draw, Term Loan

   

4.250

%

 

7/31/20

 

BB–

   

932,461

   
  983    

Mediacom Broadband LLC, Tranche G, Term Loan

   

4.000

%

 

1/20/20

 

BB

   

983,106

   
  1,608    

Numericable Group S.A., Term Loan B1

   

4.500

%

 

5/21/20

 

Ba3

   

1,615,122

   
  1,392    

Numericable Group S.A., Term Loan B2

   

4.500

%

 

5/21/20

 

Ba3

   

1,397,301

   
  1,842    

Radio One, Inc., Term Loan B, First Lien

   

7.500

%

 

3/31/16

 

B+

   

1,870,084

   
  1,489    

Springer Science & Business Media, Inc., Term Loan B3, WI/DD

 

TBD

 

TBD

 

B

   

1,993,510

   
  15,730    

Tribune Company, Term Loan B

   

4.000

%

 

12/27/20

 

BB+

   

15,737,901

   
  3,861    

Univision Communications, Inc., Replacement Term Loan, First Lien

   

4.000

%

 

3/01/20

 

B+

   

3,841,229

   
  1,013    

Weather Channel Corporation, Term Loan, Second Lien

   

7.000

%

 

6/26/20

 

B3

   

998,847

   
  1,318    

WMG Acquisition Corporation, Tranche B, Refinancing Term Loan

   

3.750

%

 

7/01/20

 

B+

   

1,293,473

   
  411    

Yell Group PLC, Term Loan A2

   

5.231

%

 

3/01/19

 

CCC+

   

397,592

   
  48    

Yell Group PLC, Term Loan A2

   

0.000

%

 

3/03/19

 

CCC+

   

   
  756    

Yell Group PLC, Term Loan B2, Payment in Kind

   

0.000

%

 

3/03/24

 

CCC–

   

   
  55,301    

Total Media

                           

55,005,584

   
   

Multiline Retail – 1.7% (1.1% of Total Investments)

 
  2,544    

Hudson's Bay Company, Term Loan B, First Lien

   

4.750

%

 

11/04/20

 

BB

   

2,567,598

   
  2,250    

J.C. Penney Corporation, Inc., Term Loan

   

5.000

%

 

6/20/19

 

B

   

2,263,208

   
  4,794    

Total Multiline Retail

                           

4,830,806

   

Nuveen Investments
29



NSL  Nuveen Senior Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Oil, Gas & Consumable Fuels – 5.7% (3.7% of Total Investments)

 

$

995

   

Western Refining, Inc., Term Loan B

   

4.250

%

 

11/12/20

 

BB–

 

$

999,975

   
  393    

CITGO Petroleum Corporation, Term Loan B

   

4.500

%

 

7/23/21

 

BB+

   

395,312

   
  1,309    

Crestwood Holdings LLC, Term Loan B

   

7.000

%

 

6/19/19

 

B

   

1,337,224

   
  2,000    

Energy and Exploration Partners, Term Loan

   

7.750

%

 

1/15/19

 

N/R

   

1,972,500

   
  822    

Fieldwood Energy LLC, Term Loan, First Lien

   

3.875

%

 

9/28/18

 

Ba2

   

823,715

   
  3,635    

Fieldwood Energy LLC, Term Loan, Second Lien

   

8.375

%

 

9/30/20

 

B2

   

3,731,289

   
  1,073    

Frac Tech International LLC, Term Loan B

   

5.750

%

 

4/16/21

 

B2

   

1,085,614

   
  686    

Harvey Gulf International Marine, Inc., Term Loan B

   

5.500

%

 

6/18/20

 

B1

   

683,748

   
  550    

Peabody Energy Corporation, Term Loan B

   

4.250

%

 

9/24/20

 

Ba1

   

550,093

   
  1,250    

Samson Investment Company, Tranche 1, Term Loan, Second Lien

   

5.000

%

 

9/25/18

 

B1

   

1,248,661

   
  2,975    

Seadrill Partners LLC, Initial Term Loan

   

4.000

%

 

2/21/21

 

BB–

   

2,945,482

   
  366    

Southcross Energy Partners L.P., Opco Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

368,131

   
  549    

Southcross Holdings Borrower L.P., Holdco Term Loan, WI/DD

 

TBD

 

TBD

 

B2

   

551,861

   
  16,603    

Total Oil, Gas & Consumable Fuels

                           

16,693,605

   
   

Pharmaceuticals – 7.7% (4.9% of Total Investments)

 
  792    

Generic Drug Holdings, Inc., Term Loan B

   

5.000

%

 

8/16/20

 

B1

   

796,208

   
  2,000    

Graceway Pharmaceuticals LLC, Second Lien Term Loan, (5)

   

0.000

%

 

5/03/13

 

N/R

   

40,000

   
  95    

Graceway Pharmaceuticals LLC, Term Loan, (5)

   

0.000

%

 

5/03/12

 

N/R

   

104,235

   
  2,993    

Grifols, Inc., Term Loan

   

3.155

%

 

2/27/21

 

Ba1

   

2,982,915

   
  1,792    

Par Pharmaceutical Companies, Inc., Term Loan B2

   

4.000

%

 

9/30/19

 

B1

   

1,791,491

   
  1,000    

Patheon, Inc., Term Loan B

   

4.250

%

 

3/11/21

 

B

   

993,750

   
  2,670    

Pharmaceutical Product Development, Inc., Term Loan B, First Lien

   

4.000

%

 

12/01/18

 

Ba3

   

2,675,476

   
  2,978    

Pharmaceutical Research Associates, Inc., Term Loan

   

4.500

%

 

9/23/20

 

B1

   

2,970,056

   
  2,327    

Quintiles Transnational Corp., Term Loan B3

   

3.750

%

 

6/08/18

 

BB

   

2,328,188

   
  1,706    

Salix Pharmaceuticals, LTD., Term Loan

   

4.250

%

 

1/02/20

 

Ba1

   

1,716,114

   
  1,449    

Therakos, Inc., Term Loan, First Lien

   

7.500

%

 

12/27/17

 

B

   

1,459,439

   
  1,318    

Valeant Pharmaceuticals International, Inc., Term Loan E

   

3.750

%

 

8/05/20

 

Ba1

   

1,317,488

   
  3,186    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan D2

   

3.750

%

 

2/13/19

 

Ba1

   

3,186,782

   
  24,306    

Total Pharmaceuticals

                           

22,362,142

   
   

Professional Services – 0.5% (0.3% of Total Investments)

 
  1,524    

Ceridian Corporation, New Replacement Term Loan

   

4.405

%

 

5/09/17

 

B1

   

1,528,545

   
   

Real Estate Investment Trust – 2.2% (1.4% of Total Investments)

 
  2,469    

Realogy Corporation, Initial Term Loan B

   

3.750

%

 

3/05/20

 

BB

   

2,472,703

   
  1,481    

Starwood Property Trust, Inc., Term Loan B

   

3.500

%

 

4/17/20

 

BB+

   

1,475,926

   
  2,455    

Walter Investment Management Corporation, Tranche B, Term Loan, First Lien

   

4.750

%

 

12/18/20

 

B+

   

2,426,903

   
  6,405    

Total Real Estate Investment Trust

                           

6,375,532

   
   

Real Estate Management & Development – 1.2% (0.8% of Total Investments)

 
  1,500    

Capital Automotive LP, Term Loan, Second Lien

   

6.000

%

 

4/30/20

 

B1

   

1,538,126

   
  1,875    

Capital Automotive LP, Term Loan, Tranche B1

   

4.000

%

 

4/10/19

 

Ba2

   

1,883,295

   
  3,375    

Total Real Estate Management & Development

                           

3,421,421

   
   

Semiconductors & Equipment – 3.8% (2.4% of Total Investments)

 
  5,000    

Avago Technologies, Term Loan B

   

3.750

%

 

5/06/21

 

BBB–

   

4,996,080

   
  3,468    

Freescale Semiconductor, Inc., Term Loan, Tranche B4

   

4.250

%

 

2/28/20

 

B1

   

3,455,113

   
  1,489    

Freescale Semiconductor, Inc., Term Loan, Tranche B5

   

5.000

%

 

1/15/21

 

B1

   

1,492,938

   
  979    

NXP Semiconductor LLC, Term Loan D

   

3.250

%

 

1/11/20

 

BB+

   

972,558

   
  10,936    

Total Semiconductors & Equipment

                           

10,916,689

   
   

Software – 8.0% (5.1% of Total Investments)

 
  2,266    

Attachmate Corporation, Term Loan, First Lien

   

7.250

%

 

11/22/17

 

BB–

   

2,294,146

   
  1,120    

Blackboard, Inc., Term Loan B3

   

4.750

%

 

10/04/18

 

B+

   

1,125,681

   
  3,121    

BMC Software, Inc., Initial Term Loan

   

5.000

%

 

9/10/20

 

B1

   

3,104,811

   
  1,050    

Datatel Parent Corp, Term Loan B1

   

4.000

%

 

7/19/18

 

B+

   

1,048,900

   
  1,055    

Emdeon Business Services LLC, Term Loan B2

   

3.750

%

 

11/02/18

 

BB–

   

1,054,910

   
  638    

Epicor Software Corporation, Term Loan, B2

   

4.000

%

 

5/16/18

 

Ba3

   

639,104

   

Nuveen Investments
30



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
    Software (continued)  

$

953

   

Explorer Holdings, Inc., Term Loan

   

6.000

%

 

5/02/18

 

B+

 

$

956,528

   
  7,671    

Infor Global Solutions Intermediate Holdings, Ltd., Term Loan B5

   

3.750

%

 

6/03/20

 

Ba3

   

7,619,993

   
  3,438    

Misys PLC, Term Loan B, First Lien

   

5.000

%

 

12/12/18

 

B+

   

3,464,929

   
  872    

SunGard Data Systems, Inc., Term Loan E

   

4.000

%

 

3/08/20

 

BB

   

874,682

   
  946    

Vertafore, Inc., Term Loan, First Lien

   

4.250

%

 

10/03/19

 

B+

   

947,709

   
  23,130    

Total Software

                           

23,131,393

   
   

Specialty Retail – 0.8% (0.5% of Total Investments)

 
  1,641    

Jo-Ann Stores, Inc., Term Loan, First Lien

   

4.000

%

 

3/16/18

 

B+

   

1,638,199

   
  750    

Michaels Stores, Inc., Term Loan B2

   

4.000

%

 

1/28/20

 

Ba3

   

747,656

   
  2,391    

Total Specialty Retail

                           

2,385,855

   
   

Textiles, Apparel & Luxury Goods – 0.7% (0.4% of Total Investments)

 
  134    

Polymer Group, Inc., Amendment No. 1, Delayed Draw, Incremental Loan, (6)

   

4.149

%

 

12/19/19

 

B–

   

134,571

   
  1,862    

Polymer Group, Inc., Initial Term Loan

   

5.250

%

 

12/19/19

 

B2

   

1,871,515

   
  1,996    

Total Textiles, Apparel & Luxury Goods

                           

2,006,086

   
   

Trading Cos & Distributors – 1.9% (1.2% of Total Investments)

 
  4,454    

HD Supply, Inc., Term Loan

   

4.000

%

 

6/28/18

 

B+

   

4,457,248

   
  1,000    

Neff Rental/Neff Finance Closing Date Loan, Second Lien

   

7.250

%

 

6/09/21

 

CCC+

   

996,875

   
  5,454    

Total Trading Cos & Distributors

                           

5,454,123

   
   

Transportation Infrastructure – 0.2% (0.1% of Total Investments)

 
  31    

Ceva Group PLC, Canadian Term Loan

   

6.500

%

 

3/19/21

 

B2

   

30,511

   
  181    

Ceva Group PLC, Dutch B.V., Term Loan

   

6.500

%

 

3/19/21

 

B2

   

176,965

   
  172    

Ceva Group PLC, Synthetic Letter of Credit Term Loan

   

0.134

%

 

3/19/21

 

B2

   

168,295

   
  249    

Ceva Group PLC, US Term Loan

   

6.500

%

 

3/19/21

 

B2

   

244,181

   
  633    

Total Transportation Infrastructure

                           

619,952

   
   

Wireless Telecommunication Services – 1.7% (1.1% of Total Investments)

 
  1,770    

Asurion LLC, Term Loan B1

   

5.000

%

 

5/24/19

 

Ba3

   

1,779,893

   
  3,003    

Fairpoint Communications, Inc., Term Loan B

   

7.500

%

 

2/11/19

 

B

   

3,100,332

   
  4,773    

Total Wireless Telecommunication Services

                           

4,880,225

   

$

371,835

   

Total Variable Rate Senior Loan Interests (cost $369,966,918)

                           

369,296,785

   
Shares  

Description (1)

             

Value

 
   

COMMON STOCKS – 2.6% (1.6% of Total Investments)

 
   

Diversified Consumer Services – 0.6% (0.4% of Total Investments)

 
  53,514    

Cengage Learning Holdings II LP, (7), (8)

                         

$

1,846,233

   
   

Hotels, Restaurants & Leisure – 0.5% (0.3% of Total Investments)

 
  40,968    

BLB Worldwide Holdings Inc., (7), (8)

                           

1,469,727

   
   

Media – 1.5% (0.9% of Total Investments)

 
  3,479    

Cumulus Media, Inc., (7)

                           

18,021

   
  32,017    

Metro-Goldwyn-Mayer, (7), (8)

                           

2,465,309

   
  18,422    

Tribune Company, (7)

                           

1,519,815

   
  14,825    

Tribune Company, (7), (9)

                           

   
  4,606    

Tribune Publishing Company, (7)

                           

96,854

   
     

Total Media

                           

4,099,999

   
   

Professional Services – 0.0% (0.0% of Total Investments)

 
  47,152    

Vertrue, Inc., (7), (8)

                           

84,874

   

Nuveen Investments
31



NSL  Nuveen Senior Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Shares  

Description (1)

             

Value

 
   

Software – 0.0% (0.0% of Total Investments)

 
  291,294    

Eagle Topco LP, (7), (8)

                         

$

   
     

Total Common Stocks (cost $5,185,987)

                           

7,500,833

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CONVERTIBLE BONDS – 0.3% (0.2% of Total Investments)

 
   

Communications Equipment – 0.3% (0.2% of Total Investments)

 

$

850

   

Nortel Networks Corp., (5)

   

1.750

%

 

4/15/12

 

N/R

 

$

860,625

   

$

850

   

Total Convertible Bonds (cost $710,500)

                           

860,625

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 19.7% (12.5% of Total Investments)

 
   

Commercial Services & Supplies – 0.3% (0.2% of Total Investments)

 

$

900

   

NES Rental Holdings Inc., 144A

   

7.875

%

 

5/01/18

 

CCC+

 

$

936,000

   
   

Communications Equipment – 0.8% (0.5% of Total Investments)

 
  1,500    

Avaya Inc., 144A

   

10.500

%

 

3/01/21

 

CCC+

   

1,312,500

   
  1,000    

Nortel Networks Limited, (5)

   

0.000

%

 

7/15/11

 

N/R

   

1,095,000

   
  2,500    

Total Communications Equipment

                           

2,407,500

   
   

Consumer Finance – 0.4% (0.2% of Total Investments)

 
  1,000    

First Data Corporation, 144A

   

7.375

%

 

6/15/19

 

BB–

   

1,050,000

   
   

Containers & Packaging – 0.9% (0.6% of Total Investments)

 
  2,600    

Reynolds Group

   

9.875

%

 

8/15/19

 

CCC+

   

2,801,500

   
   

Diversified Telecommunication Services – 2.0% (1.3% of Total Investments)

 
  2,000    

IntelSat Limited

   

7.750

%

 

6/01/21

 

B–

   

2,045,000

   
  1,200    

IntelSat Limited

   

8.125

%

 

6/01/23

 

B–

   

1,248,000

   
  2,286    

Level 3 Communications Inc.

   

11.875

%

 

2/01/19

 

B

   

2,508,885

   
  5,486    

Total Diversified Telecommunication Services

                           

5,801,885

   
   

Energy Equipment & Services – 0.2% (0.1% of Total Investments)

 
  500    

Offshore Group Investment Limited

   

7.125

%

 

4/01/23

 

B–

   

493,750

   
   

Health Care Equipment & Supplies – 2.4% (1.5% of Total Investments)

 
  2,025    

Kinetic Concepts

   

10.500

%

 

11/01/18

 

B–

   

2,242,688

   
  1,000    

Kinetic Concepts

   

12.500

%

 

11/01/19

 

CCC+

   

1,118,800

   
  3,500    

Tenet Healthcare Corporation

   

6.000

%

 

10/01/20

 

BB

   

3,657,500

   
  6,525    

Total Health Care Equipment & Supplies

                           

7,018,988

   
   

Health Care Providers & Services – 2.1% (1.3% of Total Investments)

 
  1,500    

Community Health Systems, Inc., 144A

   

5.125

%

 

8/01/21

 

BB+

   

1,511,250

   
  2,400    

Community Health Systems, Inc.

   

6.875

%

 

2/01/22

 

B

   

2,454,000

   
  325    

HCA Inc.

   

7.250

%

 

9/15/20

 

BB+

   

343,688

   
  600    

IASIS Healthcare Capital Corporation

   

8.375

%

 

5/15/19

 

CCC+

   

634,500

   
  1,000    

Truven Health Analytics Inc.

   

10.625

%

 

6/01/20

 

CCC+

   

1,085,000

   
  5,825    

Total Health Care Providers & Services

                           

6,028,438

   
   

Media – 4.3% (2.7% of Total Investments)

 
  1,524    

Clear Channel Communications, Inc.

   

10.000

%

 

1/15/18

 

CCC–

   

1,386,838

   
  2,872    

Clear Channel Communications, Inc.

   

9.000

%

 

12/15/19

 

CCC+

   

2,947,390

   
  4,730    

Clear Channel Communications, Inc.

   

14.000

%

 

2/01/21

 

CCC–

   

4,718,348

   
  2,750    

Clear Channel Communications, Inc.

   

9.000

%

 

3/01/21

 

CCC+

   

2,842,813

   

Nuveen Investments
32



Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
    Media (continued)  

$

500

   

McGraw-Hill Global Education Holdings

   

9.750

%

 

4/01/21

 

BB

 

$

557,500

   
  12,376    

Total Media

                           

12,452,889

   
   

Pharmaceuticals – 1.5% (1.0% of Total Investments)

 
  750    

Valeant Pharmaceuticals International, 144A

   

6.750

%

 

8/15/18

 

B1

   

783,750

   
  2,000    

Valeant Pharmaceuticals International, 144A

   

7.000

%

 

10/01/20

 

B1

   

2,090,000

   
  500    

Valeant Pharmaceuticals International, 144A

   

7.250

%

 

7/15/22

 

B1

   

530,000

   
  1,000    

VPII Escrow Corporation, 144A

   

7.500

%

 

7/15/21

 

B1

   

1,080,000

   
  4,250    

Total Pharmaceuticals

                           

4,483,750

   
   

Professional Services – 0.2% (0.1% of Total Investments)

 
  500    

Ceridian Corporation, 144A

   

8.125

%

 

11/15/17

 

CCC

   

498,750

   
   

Real Estate Investment Trust – 0.2% (0.2% of Total Investments)

 
  750    

iStar Financial Inc.

   

4.000

%

 

11/01/17

 

BB–

   

738,750

   
   

Semiconductors & Equipment – 1.3% (0.8% of Total Investments)

 
  1,000    

Advanced Micro Devices, Inc., 144A

   

6.750

%

 

3/01/19

 

B

   

1,025,000

   
  1,075    

Advanced Micro Devices, Inc.

   

7.750

%

 

8/01/20

 

B

   

1,107,250

   
  1,500    

Advanced Micro Devices, Inc.

   

7.500

%

 

8/15/22

 

B

   

1,552,500

   
  3,575    

Total Semiconductors & Equipment

                           

3,684,750

   
   

Software – 1.3% (0.8% of Total Investments)

 
  1,330    

BMC Software Finance Inc., 144A

   

8.125

%

 

7/15/21

 

CCC+

   

1,323,350

   
  700    

Boxer Parent Company Inc./BMC Software, 144A

   

9.000

%

 

10/15/19

 

CCC+

   

651,000

   
  850    

Infor Us Inc.

   

11.500

%

 

7/15/18

 

B–

   

949,875

   
  750    

Infor Us Inc.

   

9.375

%

 

4/01/19

 

B–

   

819,375

   
  3,630    

Total Software

                           

3,743,600

   
   

Specialty Retail – 0.0% (0.0% of Total Investments)

 
  480    

Local Insight Regatta Holdings, (5), (9)

   

11.000

%

 

12/01/17

 

D

   

5

   
   

Trading Companies & Distributors – 0.4% (0.3% of Total Investments)

 
  1,000    

HD Supply Inc.

   

8.125

%

 

4/15/19

 

B+

   

1,080,000

   
   

Wireless Telecommunication Services – 1.4% (0.9% of Total Investments)

 
  500    

FairPoint Communications Inc., 144A

   

8.750

%

 

8/15/19

 

B

   

535,000

   
  500    

Sprint Corporation, 144A

   

7.875

%

 

9/15/23

 

BB–

   

535,000

   
  1,000    

Sprint Corporation, 144A

   

7.125

%

 

6/15/24

 

BB–

   

1,020,000

   
  1,750    

T-Mobile USA Inc.

   

6.250

%

 

4/01/21

 

BB

   

1,828,750

   
  75    

T-Mobile USA Inc.

   

6.731

%

 

4/28/22

 

BB

   

78,563

   
  75    

T-Mobile USA Inc.

   

6.836

%

 

4/28/23

 

BB

   

79,500

   
  3,900    

Total Wireless Telecommunication Services

                           

4,076,813

   

$

55,797

   

Total Corporate Bonds (cost $55,695,838)

                           

57,297,368

   
      Total Long-Term Investments (cost $431,559,243)    

434,955,611

   

Nuveen Investments
33



NSL  Nuveen Senior Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 7.7% (4.9% of Total Investments)

 

$

22,293

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 7/31/14,
repurchase price $22,293,481, collateralized by $21,260,000 U.S. Treasury Notes,
3.125%, due 5/15/19, value $22,741,057
  0.000
 
 

%

  8/01/14
 
 
   
 
 
 

$

22,293,481
 
 
 
      Total Short-Term Investments (cost $22,293,481)    

22,293,481

   
      Total Investments (cost $453,852,724) – 157.6%    

457,249,092

   
      Borrowings – (38.6)% (10), (11)    

(112,000,000

)

 
      Variable Rate Term Preferred Shares, at Liquidation Value – (20.0)% (12)    

(58,000,000

)

 
      Other Assets Less Liabilities – 1.0% (13)    

2,839,010

   
      Net Assets Applicable to Common Shares – 100%  

$

290,088,102

   

Investments in Derivatives as of July 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (13)
 

Morgan Stanley

 

$

18,487,500

   

Receive

 

1-Month USD-LIBOR-BBA

   

2.201

%

 

Monthly

 

4/20/16

 

$

(550,340

)

 

  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 applicable to common shares unless otherwise noted.

(2)  Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown.

(3)  Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. 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.

(4)  Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period.

(5)  At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund's custodian to cease accruing additional income on the Fund's records.

(6)  Investment, or portion of investment, represents an unfunded senior loan commitment outstanding. See Notes to Financial Statements, Note 8 – Senior Loan Commitments for more information.

(7)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(8)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurments for more information.

(9)  Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Nuveen funds' Board of Directors/Trustees. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(10)  Borrowings as a percentage of Total Investments is 24.5%.

(11)  The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings.

(12)  Variable Rate Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 12.7%.

(13)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

DD1  Portion of investment purchased on a delayed delivery basis.

WI/DD  Purchased on a when-issued or delayed delivery basis.

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.

TBD  Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date.

USD-LIBOR-BBA  United States Dollar – London Inter-Bank Offered Rate British Bankers' Association.

See accompanying notes to financial statements.

Nuveen Investments
34



JFR

Nuveen Floating Rate Income Fund

Portfolio of Investments  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

LONG-TERM INVESTMENTS – 149.8% (94.1% of Total Investments)

 
   

VARIABLE RATE SENIOR LOAN INTERESTS – 120.8% (75.9% of Total Investments) (4)

 
   

Aerospace & Defense – 0.4% (0.2% of Total Investments)

 

$

2,463

   

Sequa Corporation, Term Loan B

   

5.250

%

 

6/19/17

 

B

 

$

2,436,336

   
   

Airlines – 2.8% (1.8% of Total Investments)

 
  3,458    

American Airlines, Inc., Term Loan

   

3.750

%

 

6/27/19

 

Ba2

   

3,465,855

   
  9,845    

Delta Air Lines, Inc., Term Loan B1

   

3.250

%

 

10/18/18

 

Ba1

   

9,837,666

   
  1,970    

Delta Air Lines, Inc., Term Loan B2

   

2.403

%

 

4/18/16

 

Ba1

   

1,974,651

   
  4,455    

US Airways, Inc., Term Loan B1

   

3.500

%

 

5/23/19

 

Ba2

   

4,438,294

   
  19,728    

Total Airlines

                           

19,716,466

   
   

Automobiles – 2.8% (1.8% of Total Investments)

 
  9,975    

Chrysler Group LLC, Tranche B, Term Loan

   

3.250

%

 

12/31/18

 

BB+

   

9,945,574

   
  7,795    

Formula One Group, Term Loan, First Lien, WI/DD

 

TBD

 

TBD

 

B

   

7,739,429

   
  2,000    

Formula One Group, Term Loan, Second Lien, WI/DD

 

TBD

 

TBD

 

CCC+

   

2,005,000

   
  19,770    

Total Automobiles

                           

19,690,003

   
   

Building Products – 0.7% (0.5% of Total Investments)

 
  2,800    

Gates Global LLC, Term Loan

   

4.250

%

 

7/03/21

 

B+

   

2,785,751

   
  2,221    

Quikrete Holdings, Inc., Term Loan, First Lien

   

4.000

%

 

9/28/20

 

B+

   

2,224,027

   
  5,021    

Total Building Products

                           

5,009,778

   
   

Capital Markets – 1.5% (0.9% of Total Investments)

 
  2,837    

Citco III Limited, Term Loan B

   

4.250

%

 

6/29/18

 

N/R

   

2,847,274

   
  2,978    

Guggenheim Partners LLC, Initial Term Loan

   

4.250

%

 

7/22/20

 

N/R

   

2,979,361

   
  4,624    

RPI Finance Trust, Term Loan B3

   

3.250

%

 

11/09/18

 

Baa2

   

4,634,776

   
  10,439    

Total Capital Markets

                           

10,461,411

   
   

Chemicals – 2.8% (1.8% of Total Investments)

 
  3,345    

Ineos US Finance LLC, Cash Dollar, Term Loan

   

3.750

%

 

5/04/18

 

BB–

   

3,333,396

   
  8,000    

Mineral Technologies, Inc., Term Loan B, First Lien

   

4.000

%

 

5/07/21

 

BB

   

8,039,936

   
  2,463    

PQ Corporation, Term Loan B

   

4.000

%

 

8/07/17

 

B+

   

2,467,501

   
  4,301    

Univar, Inc., Term Loan

   

5.000

%

 

6/30/17

 

B+

   

4,311,804

   
  361    

W.R Grace & Co., Delayed Draw, Term Loan, (6)

   

1.000

%

 

2/03/21

 

BBB–

   

360,140

   
  1,007    

W.R Grace & Co., Exit Term Loan

   

3.000

%

 

2/03/21

 

BBB–

   

1,005,870

   
  19,477    

Total Chemicals

                           

19,518,647

   
   

Commercial Services & Supplies – 3.7% (2.3% of Total Investments)

 
  983    

ADS Waste Holdings, Inc., Initial Term Loan, Tranche B2

   

3.750

%

 

10/09/19

 

B+

   

978,928

   
  1,351    

CCS Income Trust, Term Loan, First Lien

   

6.250

%

 

5/12/18

 

B–

   

1,357,224

   
  4,716    

Education Management LLC, Tranche C2, Term Loan

   

4.250

%

 

6/01/16

 

CCC–

   

3,104,417

   
  978    

HMH Holdings, Inc., Term Loan, First Lien

   

4.250

%

 

5/22/18

 

B1

   

982,388

   
  3,000    

International Lease Finance Corp., Term Loan

   

3.500

%

 

3/06/21

 

Ba1

   

2,999,463

   
  4,841    

iQor US, Inc., Term Loan, First Lien

   

6.000

%

 

4/01/21

 

B

   

4,659,722

   
  1,500    

iQor US, Inc., Term Loan, Second Lien

   

9.750

%

 

4/01/22

 

CCC+

   

1,428,750

   
  10,000    

Millennium Laboratories, Inc., Tranche B, Term Loan

   

5.250

%

 

4/16/21

 

B+

   

10,033,250

   
  27,369    

Total Commercial Services & Supplies

                           

25,544,142

   
   

Communications Equipment – 1.1% (0.7% of Total Investments)

 
  5,960    

Avaya, Inc., Term Loan B3

   

4.727

%

 

10/26/17

 

B1

   

5,779,667

   
  1,617    

Avaya, Inc., Term Loan B6

   

6.500

%

 

3/31/18

 

B1

   

1,610,259

   
  7,577    

Total Communications Equipment

                           

7,389,926

   

Nuveen Investments
35



JFR  Nuveen Floating Rate Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Computers & Peripherals – 2.6% (1.6% of Total Investments)

 

$

17,865

   

Dell, Inc., Term Loan B

   

4.500

%

 

4/29/20

 

BB+

 

$

17,916,147

   
   

Containers & Packaging – 0.4% (0.3% of Total Investments)

 
  2,915    

Reynolds Group Holdings, Inc., Incremental US Term Loan, First Lien

   

4.000

%

 

12/01/18

 

B+

   

2,912,576

   
   

Diversified Consumer Services – 5.4% (3.4% of Total Investments)

 
  6,000    

Cengage Learning Acquisitions, Inc., Exit Term Loan

   

7.000

%

 

3/31/20

 

B+

   

6,051,368

   
  3,391    

Harland Clarke Holdings Corporation, Term Loan B3

   

7.000

%

 

5/22/18

 

B+

   

3,453,388

   
  1,481    

Harland Clarke Holdings Corporation, Term Loan B4

   

6.000

%

 

8/04/19

 

B+

   

1,508,653

   
  15,158    

Hilton Hotels Corporation, Term Loan B2

   

3.500

%

 

10/25/20

 

BB+

   

15,106,585

   
  3,888    

Laureate Education, Inc., Term Loan B

   

5.000

%

 

6/15/18

 

B

   

3,780,715

   
  3,538    

New Albertson's, Inc., Term Loan

   

4.750

%

 

6/24/21

 

Ba3

   

3,553,482

   
  4,196    

ServiceMaster Company, Term Loan

   

4.250

%

 

7/01/21

 

B+

   

4,176,076

   
  37,652    

Total Diversified Consumer Services

                           

37,630,267

   
   

Diversified Financial Services – 1.7% (1.1% of Total Investments)

 
  3,465    

Home Loan Servicing Solutions, Ltd., Term Loan B

   

4.500

%

 

6/26/20

 

BB–

   

3,481,244

   
  5,184    

Ocwen Financial Corporation, Term Loan B

   

5.000

%

 

2/15/18

 

B+

   

5,206,409

   
  3,000    

RCS Capital, Term Loan

   

6.500

%

 

4/29/19

 

B+

   

3,054,375

   
  11,649    

Total Diversified Financial Services

                           

11,742,028

   
   

Diversified Telecommunication Services – 5.8% (3.6% of Total Investments)

 
  1,734    

Greeneden U.S. Holdings II LLC, Term Loan B

   

4.000

%

 

2/08/20

 

B

   

1,723,198

   
  1,811    

Intelsat Jackson Holdings, S.A., Tranche B2, Term Loan

   

3.750

%

 

6/30/19

 

BB–

   

1,810,824

   
  3,667    

Level 3 Financing, Inc., Term Loan, Tranche B3

   

4.000

%

 

8/01/19

 

BB

   

3,659,220

   
  1,784    

Presidio, Inc., Term Loan B

   

5.000

%

 

3/31/17

 

B+

   

1,793,577

   
  2,250    

SBA Communication, Incremental Term Loan, Tranche B1

   

3.250

%

 

3/24/21

 

BB

   

2,230,313

   
  2,000    

TelX Group, Inc., Initial Term Loan, First Lien

   

4.500

%

 

4/09/20

 

B1

   

2,000,000

   
  1,250    

TelX Group, Inc., Initial Term Loan, Second Lien

   

7.500

%

 

4/09/21

 

CCC

   

1,251,562

   
  13,666    

WideOpenWest Finance LLC, Term Loan B

   

4.750

%

 

4/01/19

 

Ba3

   

13,729,112

   
  4,437    

Ziggo N.V., Term Loan B1, DD1

   

3.250

%

 

1/15/22

 

BB–

   

4,367,717

   
  2,860    

Ziggo N.V., Term Loan B2, DD1

   

3.250

%

 

1/15/22

 

BB–

   

2,814,639

   
  4,703    

Ziggo N.V., Term Loan B3, Delayed Draw WI/DD

 

TBD

 

TBD

 

BB–

   

4,629,076

   
  40,162    

Total Diversified Telecommunication Services

                           

40,009,238

   
   

Electronic Equipment & Instruments – 0.6% (0.4% of Total Investments)

 
  4,393    

SMART Modular Technologies, Inc., Term Loan B

   

8.250

%

 

8/26/17

 

B

   

4,370,625

   
   

Energy Equipment & Services – 2.0% (1.3% of Total Investments)

 
  8,588    

Drill Rigs Holdings, Inc., Tranche B1, Term Loan

   

6.000

%

 

3/31/21

 

B+

   

8,674,174

   
  1,399    

Dynamic Energy Services International LLC, Term Loan

   

9.500

%

 

3/06/18

 

B–

   

1,391,964

   
  1,558    

Offshore Group Investment Limited, Term Loan B

   

5.000

%

 

10/25/17

 

B–

   

1,553,562

   
  2,473    

Pacific Drilling S.A., Term Loan B

   

4.500

%

 

6/03/18

 

B+

   

2,481,784

   
  14,018    

Total Energy Equipment & Services

                           

14,101,484

   
   

Food & Staples Retailing – 2.8% (1.8% of Total Investments)

 
  4,960    

Albertson's LLC, Term Loan B2

   

4.750

%

 

3/21/19

 

BB–

   

4,991,511

   
  3,267    

BJ's Wholesale Club, Inc., Replacement Loan, First Lien

   

4.500

%

 

9/26/19

 

B–

   

3,265,087

   
  4,000    

BJ's Wholesale Club, Inc., Replacement Loan, Second Lien

   

8.500

%

 

3/26/20

 

CCC

   

4,063,752

   
  746    

Del Monte Foods Company, Term Loan, First Lien

   

4.251

%

 

2/18/21

 

B+

   

741,702

   
  1,500    

Rite Aid Corporation, Tranche 1, Term Loan, Second Lien

   

5.750

%

 

8/21/20

 

B

   

1,531,500

   
  1,675    

Rite Aid Corporation, Tranche 2, Term Loan, Second Lien

   

4.875

%

 

6/21/21

 

B

   

1,694,368

   
  3,142    

Supervalu, Inc., New Term Loan

   

4.500

%

 

3/21/19

 

B+

   

3,142,169

   
  19,290    

Total Food & Staples Retailing

                           

19,430,089

   
   

Food Products – 7.2% (4.5% of Total Investments)

 
  14,266    

H.J Heinz Company, Term Loan B2

   

3.500

%

 

6/05/20

 

BB

   

14,283,782

   
  2,000    

Hearthside Group Holdings, Term Loan, First Lien

   

4.500

%

 

6/02/21

 

B1

   

2,006,666

   

Nuveen Investments
36



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
    Food Products (continued)  

$

7,000

   

Jacobs Douwe Egberts, Term Loan B, WI/DD

 

TBD

 

TBD

 

BB

 

$

6,912,500

   
  4,778    

Pinnacle Foods Finance LLC, Term Loan G

   

3.250

%

 

4/29/20

 

BB

   

4,748,707

   
  17,007    

US Foods, Inc., Incremental Term Loan

   

4.500

%

 

3/31/19

 

B2

   

17,017,510

   
  5,400    

Wilton Products, Inc., Tranche B, Term Loan

   

7.500

%

 

8/30/18

 

B–

   

5,184,259

   
  50,451    

Total Food Products

                           

50,153,424

   
   

Health Care Equipment & Supplies – 2.7% (1.7% of Total Investments)

 
  1,294    

Ardent Medical Services, Inc., Term Loan, First Lien

   

6.750

%

 

7/02/18

 

B+

   

1,300,539

   
  1,859    

Biomet, Inc., Term Loan B2

   

3.663

%

 

7/25/17

 

BB–

   

1,860,293

   
  2,518    

ConvaTec, Inc., Dollar Term Loan

   

4.000

%

 

12/22/16

 

Ba3

   

2,523,147

   
  4,678    

Kinetic Concepts, Inc., Term Loan D1

   

4.000

%

 

5/04/18

 

BB–

   

4,683,333

   
  5,529    

Onex Carestream Finance LP, Term Loan, First Lien

   

5.000

%

 

6/07/19

 

B+

   

5,544,090

   
  2,553    

Onex Carestream Finance LP, Term Loan, Second Lien

   

9.500

%

 

12/07/19

 

B–

   

2,603,721

   
  18,431    

Total Health Care Equipment & Supplies

                           

18,515,123

   
   

Health Care Providers & Services – 6.6% (4.2% of Total Investments)

 
  679    

BioScrip, Inc., Delayed Draw, Term Loan

   

6.500

%

 

7/31/20

 

B1

   

688,045

   
  1,131    

BioScrip, Inc., Initial Term Loan B

   

6.500

%

 

7/31/20

 

B1

   

1,146,742

   
  4,975    

Community Health Systems, Inc., Term Loan D

   

4.250

%

 

1/27/21

 

BB

   

4,993,656

   
  8,313    

DaVita HealthCare Partners, Inc., Tranche B, Term Loan

   

3.500

%

 

6/24/21

 

Ba1

   

8,310,864

   
  13,461    

Drumm Investors LLC, Term Loan

   

6.750

%

 

5/04/18

 

B

   

13,490,723

   
  1,464    

Genesis Healthcare LLC, Term Loan

   

10.000

%

 

12/04/17

 

B

   

1,495,761

   
  1,315    

HCA, Inc., Tranche B5, Term Loan

   

2.905

%

 

3/31/17

 

BB

   

1,317,509

   
  2,955    

Heartland Dental Care, Inc., Term Loan, First Lien

   

5.500

%

 

12/21/18

 

B1

   

2,971,056

   
  2,000    

Heartland Dental Care, Inc., Term Loan, Second Lien

   

9.750

%

 

6/21/19

 

CCC+

   

2,048,750

   
  1,737    

LHP Operations Co. LLC, Term Loan B

   

9.000

%

 

7/03/18

 

B–

   

1,663,032

   
  869    

Mallinckrodt International Finance SA, Initial Term Loan B

   

3.500

%

 

3/19/21

 

BB+

   

865,492

   
  2,169    

National Mentor Holdings, Inc., Term Loan B

   

4.750

%

 

1/31/21

 

B1

   

2,179,064

   
  3,980    

One Call Care Management, Inc., Term Loan B

   

5.000

%

 

11/27/20

 

B1

   

3,991,442

   
  721    

Skilled Healthcare Group, Inc., Term Loan

   

7.000

%

 

4/09/16

 

B

   

720,689

   
  45,769    

Total Health Care Providers & Services

                           

45,882,825

   
   

Health Care Technology – 0.9% (0.6% of Total Investments)

 
  6,200    

Catalent Pharma Solutions, Inc., Term Loan

   

4.500

%

 

5/20/21

 

BB–

   

6,233,424

   
   

Hotels, Restaurants & Leisure – 4.6% (2.9% of Total Investments)

 
  1,820    

Caesars Entertainment Operating Company, Inc., Term Loan B6

   

6.963

%

 

1/28/18

 

Caa1

   

1,699,741

   
  3,402    

CCM Merger, Inc., Term Loan

   

6.000

%

 

3/01/17

 

B+

   

3,406,428

   
  5,228    

CityCenter Holdings LLC, Term Loan

   

4.250

%

 

10/24/20

 

B

   

5,247,878

   
  2,100    

Extended Stay America, Inc., Term Loan

   

5.000

%

 

6/24/19

 

B+

   

2,131,500

   
  2,488    

Intrawest Resorts Holdings, Inc., Initial Term Loan

   

5.500

%

 

12/09/20

 

B+

   

2,537,250

   
  2,745    

Landry's Restaraunts, Inc., Term Loan B

   

4.000

%

 

4/24/18

 

BB–

   

2,754,994

   
  2,955    

MGM Resorts International, Term Loan B

   

3.500

%

 

12/20/19

 

BB

   

2,941,457

   
  3,980    

Scientific Games Corporation, Term Loan B

   

4.250

%

 

10/18/20

 

BB–

   

3,929,183

   
  3,393    

Seaworld Parks and Entertainment, Inc., Term Loan B2

   

3.000

%

 

5/14/20

 

BB+

   

3,346,831

   
  3,825    

Station Casino LLC, Term Loan B

   

4.250

%

 

3/02/20

 

B1

   

3,830,051

   
  31,936    

Total Hotels, Restaurants & Leisure

                           

31,825,313

   
   

Household Durables – 0.7% (0.4% of Total Investments)

 
  2,666    

Serta Simmons Holdings LLC, Term Loan

   

4.250

%

 

10/01/19

 

B+

   

2,671,059

   
  2,061    

Tempur-Pedic International, Inc., New Term Loan B

   

3.500

%

 

3/18/20

 

BB

   

2,060,593

   
  4,727    

Total Household Durables

                           

4,731,652

   
   

Household Products – 0.1% (0.0% of Total Investments)

 
  495    

Spectrum Brands, Inc., Term Loan C

   

3.500

%

 

9/04/19

 

BB

   

495,319

   
   

Industrial Conglomerates – 0.4% (0.2% of Total Investments)

 
  2,488    

Brand Energy & Infrastructure Services, Inc., Initial Term Loan

   

4.750

%

 

11/26/20

 

B1

   

2,492,385

   

Nuveen Investments
37



JFR  Nuveen Floating Rate Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Insurance – 2.0% (1.3% of Total Investments)

 

$

1,967

   

Alliant Holdings I LLC, Initial Term Loan B, First Lien

   

4.250

%

 

12/20/19

 

B1

 

$

1,971,703

   
  5,960    

Hub International Holdings, Inc., Initial Term Loan

   

4.250

%

 

10/02/20

 

B1

   

5,952,069

   
  6,174    

USI Holdings Corporation, Initial Term Loan

   

4.250

%

 

12/27/19

 

B1

   

6,182,983

   
  14,101    

Total Insurance

                           

14,106,755

   
   

Internet Software & Services – 0.6% (0.4% of Total Investments)

 
  744    

Sabre Inc., Term Loan B2

   

4.500

%

 

2/19/19

 

Ba3

   

745,693

   
  290    

Sabre Inc., Term Loan C

   

4.000

%

 

2/18/18

 

Ba3

   

290,678

   
  3,448    

Sabre Inc., Term Loan

   

4.250

%

 

2/18/19

 

Ba3

   

3,442,832

   
  4,482    

Total Internet Software & Services

                           

4,479,203

   
   

IT Services – 2.3% (1.4% of Total Investments)

 
  8,058    

EIG Investors Corp., Term Loan

   

5.000

%

 

11/09/19

 

B

   

8,098,674

   
  3,063    

Vantiv, Inc., Term Loan B

   

3.750

%

 

6/13/21

 

BB+

   

3,077,813

   
  2,305    

VFH Parent LLC, New Term Loan

   

5.750

%

 

11/08/19

 

N/R

   

2,285,045

   
  2,449    

Zayo Group LLC, Term Loan B

   

4.000

%

 

7/02/19

 

B1

   

2,441,138

   
  15,875    

Total IT Services

                           

15,902,670

   
   

Leisure Equipment & Products – 2.1% (1.3% of Total Investments)

 
  5,000    

24 Hour Fitness Worldwide, Inc., Term Loan B

   

4.750

%

 

5/28/21

 

Ba3

   

5,023,405

   
  5,539    

Bombardier Recreational Products, Inc., Term Loan

   

4.000

%

 

1/30/19

 

B+

   

5,531,648

   
  3,209    

Equinox Holdings, Inc., New Initial Term Loan B

   

4.250

%

 

1/31/20

 

Ba3

   

3,221,410

   
  1,000    

Four Seasons Holdings, Inc., Term Loan, Second Lien

   

6.250

%

 

12/27/20

 

B–

   

1,011,250

   
  14,748    

Total Leisure Equipment & Products

                           

14,787,713

   
   

Machinery – 1.0% (0.6% of Total Investments)

 
  5,000    

Doosan Infracore International, Inc., Term Loan

   

4.500

%

 

5/27/21

 

BB–

   

5,027,040

   
  1,851    

Rexnord LLC, Term Loan B

   

4.000

%

 

8/21/20

 

BB–

   

1,849,736

   
  6,851    

Total Machinery

                           

6,876,776

   
   

Media – 18.5% (11.6% of Total Investments)

 
  118    

Advantage Sales & Marketing, Inc., Delayed Draw, Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

117,342

   
  3,532    

Advantage Sales & Marketing, Inc., Term Loan, First Lien

   

4.250

%

 

7/11/21

 

B1

   

3,520,273

   
  2,200    

Advantage Sales & Marketing, Inc., Term Loan, Second Lien, DD1

   

7.500

%

 

7/11/22

 

CCC+

   

2,210,083

   
  2,221    

Affinion Group Holdings, Inc., Initial Term Loan, Second Lien

   

8.500

%

 

10/31/18

 

B3

   

2,193,690

   
  1,337    

Affinion Group Holdings, Inc., Term Loan, First Lien

   

6.750

%

 

4/30/18

 

B1

   

1,327,451

   
  2,000    

Catalina Marketing Corporation, Term Loan, First Lien

   

4.500

%

 

4/09/21

 

B+

   

2,005,000

   
  2,000    

Catalina Marketing Corporation, Term Loan, Second Lien

   

7.750

%

 

4/11/22

 

CCC+

   

1,995,000

   
  1,160    

Clear Channel Communications, Inc., Tranche B, Term Loan

   

3.805

%

 

1/29/16

 

CCC+

   

1,151,923

   
  3,952    

Clear Channel Communications, Inc., Tranche D, Term Loan

   

6.905

%

 

1/30/19

 

CCC+

   

3,890,103

   
  3,218    

Clear Channel Communications, Inc., Term Loan E

   

7.655

%

 

7/30/19

 

CCC+

   

3,219,575

   
  13,391    

Cumulus Media, Inc., Term Loan B

   

4.250

%

 

12/23/20

 

B+

   

13,435,207

   
  4,088    

Emerald Expositions Holdings, Inc., Term Loan, First Lien

   

4.750

%

 

6/17/20

 

BB–

   

4,116,175

   
  1,458    

EMI Music Publishing LLC, Term Loan B

   

3.750

%

 

6/29/18

 

BB–

   

1,455,148

   
  1,000    

Gray Television, Inc., Initial Term Loan

   

3.750

%

 

6/13/21

 

BB

   

1,001,719

   
  3,000    

IMG Worldwide, Inc., First Lien

   

5.250

%

 

5/06/21

 

B1

   

2,986,251

   
  3,750    

Interactive Data Corporation, Term Loan B

   

4.750

%

 

5/02/21

 

B+

   

3,769,924

   
  3,380    

McGraw-Hill Education Holdings LLC, Refinancing Term Loan

   

5.750

%

 

3/22/19

 

B+

   

3,417,148

   
  2,783    

Media General, Inc., Delayed Draw, Term Loan

   

4.250

%

 

7/31/20

 

BB–

   

2,797,384

   
  1,965    

Mediacom Broadband LLC, Tranche G, Term Loan

   

4.000

%

 

1/20/20

 

BB

   

1,966,212

   
  3,217    

Numericable Group S.A., Term Loan B1

   

4.500

%

 

5/21/20

 

Ba3

   

3,230,244

   
  2,783    

Numericable Group S.A., Term Loan B2

   

4.500

%

 

5/21/20

 

Ba3

   

2,794,602

   
  3,911    

Radio One, Inc., Term Loan B, First Lien

   

7.500

%

 

3/31/16

 

B+

   

3,969,685

   
  2,978    

Springer Science & Business Media, Inc., Term Loan B3, WI/DD

 

TBD

 

TBD

 

N/R

   

3,987,021

   
  34,497    

Tribune Company, Term Loan B

   

4.000

%

 

12/27/20

 

BB+

   

34,514,565

   
  17,758    

Univision Communications, Inc., Replacement Term Loan, First Lien

   

4.000

%

 

3/01/20

 

B+

   

17,669,654

   
  1,000    

Virgin Media Investment Holdings, Term Loan B

   

3.500

%

 

6/07/20

 

BB–

   

992,109

   
  1,520    

Weather Channel Corporation, Term Loan, Second Lien

   

7.000

%

 

6/26/20

 

B3

   

1,498,271

   
  2,019    

WMG Acquisition Corporation, Tranche B, Refinancing Term Loan

   

3.750

%

 

7/01/20

 

B+

   

1,982,206

   

Nuveen Investments
38



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
    Media (continued)  

$

1,046

   

Yell Group PLC, Term Loan A2

   

5.231

%

 

3/01/19

 

CCC+

 

$

1,012,272

   
  123    

Yell Group PLC, Term Loan A2

   

0.000

%

 

3/03/19

 

CCC+

   

   
  1,925    

Yell Group PLC, Term Loan B2, Payment in Kind

   

0.000

%

 

3/03/24

 

CCC–

   

   
  129,330    

Total Media

                           

128,226,237

   
   

Multiline Retail – 1.3% (0.8% of Total Investments)

 
  4,625    

Hudson's Bay Company, Term Loan B, First Lien

   

4.750

%

 

11/04/20

 

BB

   

4,668,359

   
  4,125    

J.C. Penney Corporation, Inc., Term Loan

   

5.000

%

 

6/20/19

 

B

   

4,149,214

   
  8,750    

Total Multiline Retail

                           

8,817,573

   
   

Oil, Gas & Consumable Fuels – 6.0% (3.8% of Total Investments)

 
  1,990    

Western Refining, Inc., Term Loan B

   

4.250

%

 

11/12/20

 

BB–

   

1,999,950

   
  1,179    

CITGO Petroleum Corporation, Term Loan B

   

4.500

%

 

7/23/21

 

BB+

   

1,185,938

   
  2,618    

Crestwood Holdings LLC, Term Loan B

   

7.000

%

 

6/19/19

 

B

   

2,674,448

   
  5,000    

Energy and Exploration Partners, Term Loan

   

7.750

%

 

1/15/19

 

N/R

   

4,931,250

   
  1,667    

EP Energy LLC, Term Loan B3, Second Lien

   

3.500

%

 

5/24/18

 

Ba3

   

1,662,673

   
  3,394    

Fieldwood Energy LLC, Term Loan, First Lien

   

3.875

%

 

9/28/18

 

Ba2

   

3,401,704

   
  8,967    

Fieldwood Energy LLC, Term Loan, Second Lien

   

8.375

%

 

9/30/20

 

B2

   

9,199,980

   
  2,010    

Frac Tech International LLC, Term Loan B

   

5.750

%

 

4/16/21

 

B2

   

2,032,445

   
  1,688    

Harvey Gulf International Marine, Inc., Term Loan B

   

5.500

%

 

6/18/20

 

B1

   

1,683,152

   
  1,374    

Peabody Energy Corporation, Term Loan B

   

4.250

%

 

9/24/20

 

Ba1

   

1,375,233

   
  2,500    

Samson Investment Company, Tranche 1, Term Loan, Second Lien

   

5.000

%

 

9/25/18

 

B1

   

2,497,323

   
  7,193    

Seadrill Partners LLC, Initial Term Loan

   

4.000

%

 

2/21/21

 

BB–

   

7,121,136

   
  854    

Southcross Energy Partners L.P., Opco Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

858,973

   
  1,280    

Southcross Holdings Borrower L.P., Holdco Term Loan, WI/DD

 

TBD

 

TBD

 

B2

   

1,287,675

   
  41,714    

Total Oil, Gas & Consumable Fuels

                           

41,911,880

   
   

Pharmaceuticals – 6.3% (4.0% of Total Investments)

 
  1,584    

Generic Drug Holdings, Inc., Term Loan B

   

5.000

%

 

8/16/20

 

B1

   

1,592,416

   
  5,625    

Graceway Pharmaceuticals LLC, Second Lien Term Loan, (5)

   

0.000

%

 

5/03/13

 

N/R

   

112,500

   
  51    

Graceway Pharmaceuticals LLC, Term Loan, (5)

   

0.000

%

 

5/03/12

 

N/R

   

55,681

   
  5,976    

Grifols, Inc., Term Loan

   

3.155

%

 

2/27/21

 

Ba1

   

5,957,108

   
  3,585    

Par Pharmaceutical Companies, Inc., Term Loan B2

   

4.000

%

 

9/30/19

 

B1

   

3,582,983

   
  4,000    

Patheon, Inc., Term Loan B, DD1

   

4.250

%

 

3/11/21

 

B

   

3,975,000

   
  5,340    

Pharmaceutical Product Development, Inc., Term Loan B, First Lien

   

4.000

%

 

12/01/18

 

Ba3

   

5,350,952

   
  5,707    

Pharmaceutical Research Associates, Inc., Term Loan

   

4.500

%

 

9/23/20

 

B1

   

5,692,608

   
  3,925    

Quintiles Transnational Corp., Term Loan B3

   

3.750

%

 

6/08/18

 

BB

   

3,927,788

   
  3,413    

Salix Pharmaceuticals, LTD., Term Loan

   

4.250

%

 

1/02/20

 

Ba1

   

3,432,228

   
  3,380    

Therakos, Inc., Term Loan, First Lien

   

7.500

%

 

12/27/17

 

B

   

3,405,358

   
  2,639    

Valeant Pharmaceuticals International, Inc., Term Loan E

   

3.750

%

 

8/05/20

 

Ba1

   

2,636,488

   
  4,211    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan D2

   

3.750

%

 

2/13/19

 

Ba1

   

4,210,774

   
  49,436    

Total Pharmaceuticals

                           

43,931,884

   
   

Professional Services – 0.3% (0.2% of Total Investments)

 
  2,227    

Ceridian Corporation, New Replacement Term Loan

   

4.405

%

 

5/09/17

 

B1

   

2,233,136

   
   

Real Estate Investment Trust – 2.4% (1.5% of Total Investments)

 
  4,938    

Realogy Corporation, Initial Term Loan B

   

3.750

%

 

3/05/20

 

BB

   

4,945,405

   
  5,935    

Starwood Property Trust, Inc., Term Loan B

   

3.500

%

 

4/17/20

 

BB+

   

5,913,595

   
  5,730    

Walter Investment Management Corporation, Tranche B, Term Loan, First Lien

   

4.750

%

 

12/18/20

 

B+

   

5,663,471

   
  16,603    

Total Real Estate Investment Trust

                           

16,522,471

   
   

Real Estate Management & Development – 1.6% (1.0% of Total Investments)

 
  3,000    

Capital Automotive LP, Term Loan, Second Lien

   

6.000

%

 

4/30/20

 

B1

   

3,076,251

   
  8,189    

Capital Automotive LP, Term Loan, Tranche B1

   

4.000

%

 

4/10/19

 

Ba2

   

8,224,503

   
  11,189    

Total Real Estate Management & Development

                           

11,300,754

   

Nuveen Investments
39



JFR  Nuveen Floating Rate Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Semiconductors & Equipment – 3.2% (2.0% of Total Investments)

 

$

10,000

   

Avago Technologies, Term Loan B

   

3.750

%

 

5/06/21

 

BBB–

 

$

9,992,160

   
  6,438    

Freescale Semiconductor, Inc., Term Loan, Tranche B4

   

4.250

%

 

2/28/20

 

B1

   

6,414,513

   
  2,978    

Freescale Semiconductor, Inc., Term Loan, Tranche B5

   

5.000

%

 

1/15/21

 

B1

   

2,985,876

   
  2,936    

NXP Semiconductor LLC, Term Loan D

   

3.250

%

 

1/11/20

 

BB+

   

2,917,674

   
  22,352    

Total Semiconductors & Equipment

                           

22,310,223

   
   

Software – 7.4% (4.6% of Total Investments)

 
  5,464    

Attachmate Corporation, Term Loan, First Lien

   

7.250

%

 

11/22/17

 

BB–

   

5,532,642

   
  2,934    

Blackboard, Inc., Term Loan B3

   

4.750

%

 

10/04/18

 

B+

   

2,949,691

   
  6,722    

BMC Software, Inc., Initial Term Loan

   

5.000

%

 

9/10/20

 

B1

   

6,687,286

   
  3,151    

Datatel Parent Corp, Term Loan B1

   

4.000

%

 

7/19/18

 

B+

   

3,148,583

   
  4,727    

Emdeon Business Services LLC, Term Loan B2

   

3.750

%

 

11/02/18

 

BB–

   

4,728,943

   
  638    

Epicor Software Corporation, Term Loan, B2

   

4.000

%

 

5/16/18

 

Ba3

   

639,103

   
  1,906    

Explorer Holdings, Inc., Term Loan

   

6.000

%

 

5/02/18

 

B+

   

1,913,057

   
  15,594    

Infor Global Solutions Intermediate Holdings, Ltd., Term Loan B5

   

3.750

%

 

6/03/20

 

Ba3

   

15,487,030

   
  6,386    

Misys PLC, Term Loan B, First Lien

   

5.000

%

 

12/12/18

 

B+

   

6,434,868

   
  1,101    

SS&C Technologies, Inc./ Sunshine Acquisition II, Inc. 2013 Replacement Term Loan B1

   

3.250

%

 

6/07/19

 

BBB–

   

1,102,746

   
  114    

SS&C Technologies, Inc./ Sunshine Acquisition II, Inc. 2013 Replacement Term Loan B2

   

3.250

%

 

6/07/19

 

BBB–

   

114,131

   
  2,615    

SunGard Data Systems, Inc., Term Loan E

   

4.000

%

 

3/08/20

 

BB

   

2,624,045

   
  51,352    

Total Software

                           

51,362,125

   
   

Specialty Retail – 0.8% (0.5% of Total Investments)

 
  3,764    

Jo-Ann Stores, Inc., Term Loan, First Lien

   

4.000

%

 

3/16/18

 

B+

   

3,758,174

   
  1,500    

Michaels Stores, Inc., Term Loan B2

   

4.000

%

 

1/28/20

 

Ba3

   

1,495,312

   
  5,264    

Total Specialty Retail

                           

5,253,486

   
   

Textiles, Apparel & Luxury Goods – 0.6% (0.4% of Total Investments)

 
  267    

Polymer Group, Inc., Amendment No. 1, Delayed Draw, Incremental Loan, (6)

   

4.149

%

 

12/19/19

 

B–

   

269,142

   
  4,223    

Polymer Group, Inc., Initial Term Loan

   

5.250

%

 

12/19/19

 

B2

   

4,244,270

   
  4,490    

Total Textiles, Apparel & Luxury Goods

                           

4,513,412

   
   

Trading Companies & Distributors – 1.5% (0.9% of Total Investments)

 
  8,113    

HD Supply, Inc., Term Loan

   

4.000

%

 

6/28/18

 

B+

   

8,119,684

   
  2,000    

Neff Rental/Neff Finance Closing Date Loan, Second Lien

   

7.250

%

 

6/09/21

 

CCC+

   

1,993,750

   
  10,113    

Total Trading Companies & Distributors

                           

10,113,434

   
   

Transportation Infrastructure – 0.2% (0.1% of Total Investments)

 
  78    

Ceva Group PLC, Canadian Term Loan

   

6.500

%

 

3/19/21

 

B2

   

76,278

   
  451    

Ceva Group PLC, Dutch B.V., Term Loan

   

6.500

%

 

3/19/21

 

B2

   

442,413

   
  429    

Ceva Group PLC, Synthetic Letter of Credit Term Loan

   

0.134

%

 

3/19/21

 

B2

   

420,737

   
  622    

Ceva Group PLC, US Term Loan

   

6.500

%

 

3/19/21

 

B2

   

610,452

   
  1,580    

Total Transportation Infrastructure

                           

1,549,880

   
   

Wireless Telecommunication Services – 2.4% (1.5% of Total Investments)

 
  9,735    

Asurion LLC, Term Loan B1

   

5.000

%

 

5/24/19

 

Ba3

   

9,789,399

   
  4,939    

Fairpoint Communications, Inc., Term Loan B

   

7.500

%

 

2/11/19

 

B

   

5,095,910

   
  2,000    

UPC Broadband Holding BV, Term Loan AH

   

3.250

%

 

6/30/21

 

BB–

   

1,981,500

   
  16,674    

Total Wireless Telecommunication Services

                           

16,866,809

   

$

847,416

   

Total Variable Rate Senior Loan Interests (cost $842,335,205)

                           

839,275,049

   
Shares  

Description (1)

             

Value

 
   

COMMON STOCKS – 2.8% (1.8% of Total Investments)

 
   

Diversified Consumer Services – 0.4% (0.3% of Total Investments)

 
  78,490    

Cengage Learning Holdings II LP, (7), (8)

                         

$

2,707,905

   

Nuveen Investments
40



Shares  

Description (1)

             

Value

 
   

Hotels, Restaurants & Leisure – 0.2% (0.1% of Total Investments)

 
  42,041    

BLB Worldwide Holdings Inc., (7), (8)

                         

$

1,508,221

   
  2,670    

Buffets Term Loan, (7), (8)

                           

14,018

   
      Total Hotels, Restaurants & Leisure    

1,522,239

   
   

Media – 2.2% (1.4% of Total Investments)

 
  6,594    

Cumulus Media, Inc., (7)

                           

34,157

   
  133,060    

Metro-Goldwyn-Mayer, (7), (8)

                           

10,245,620

   
  57,088    

Tribune Company, (7)

                           

4,709,760

   
  45,942    

Tribune Company, (7), (9)

                           

   
  14,272    

Tribune Publishing Company, (7)

                           

300,140

   
      Total Media    

15,289,677

   
   

Professional Services – 0.0% (0.0% of Total Investments)

 
  47,152    

Vertrue, Inc., (7), (8)

                           

84,874

   
   

Software – 0.0% (0.0% of Total Investments)

 
  743,286    

Eagle Topco LP, (7), (8)

                           

1

   
      Total Common Stocks (cost $14,210,920)    

19,604,696

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CONVERTIBLE BONDS – 0.3% (0.2% of Total Investments)

 
   

Communications Equipment – 0.3% (0.2% of Total Investments)

 

$

850

   

Nortel Networks Corp., (5)

   

1.750

%

 

4/15/12

 

N/R

 

$

860,625

   
  1,000    

Nortel Networks Corp., (5)

   

2.125

%

 

4/15/14

 

N/R

   

1,015,000

   

$

1,850

   

Total Convertible Bonds (cost $1,563,750)

                           

1,875,625

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 18.6% (11.7% of Total Investments)

 
   

Commercial Services & Supplies – 0.1% (0.1% of Total Investments)

 

$

700

   

NES Rental Holdings Inc., 144A

   

7.875

%

 

5/01/18

 

CCC+

 

$

728,000

   
   

Communications Equipment – 1.0% (0.6% of Total Investments)

 
  2,500    

Avaya Inc., 144A

   

10.500

%

 

3/01/21

 

CCC+

   

2,187,500

   
  4,000    

Nortel Networks Limited, (5)

   

0.000

%

 

7/15/11

 

N/R

   

4,380,000

   
  6,500    

Total Communications Equipment

                           

6,567,500

   
   

Consumer Finance – 0.5% (0.3% of Total Investments)

 
  3,000    

First Data Corporation, 144A

   

7.375

%

 

6/15/19

 

BB–

   

3,150,000

   
   

Containers & Packaging – 0.9% (0.6% of Total Investments)

 
  5,750    

Reynolds Group

   

9.875

%

 

8/15/19

 

CCC+

   

6,195,625

   
   

Diversified Telecommunication Services – 1.9% (1.2% of Total Investments)

 
  1,500    

Consolidated Communications Finance Company

   

10.875

%

 

6/01/20

 

B–

   

1,740,000

   
  4,000    

IntelSat Limited

   

7.750

%

 

6/01/21

 

B–

   

4,090,000

   
  2,050    

IntelSat Limited

   

8.125

%

 

6/01/23

 

B–

   

2,132,000

   
  4,611    

Level 3 Communications Inc.

   

11.875

%

 

2/01/19

 

B

   

5,060,573

   
  12,161    

Total Diversified Telecommunication Services

                           

13,022,573

   
   

Energy Equipment & Services – 0.1% (0.1% of Total Investments)

 
  1,000    

Offshore Group Investment Limited

   

7.125

%

 

4/01/23

 

B–

   

987,500

   

Nuveen Investments
41



JFR  Nuveen Floating Rate Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Health Care Equipment & Supplies – 1.4% (0.9% of Total Investments)

 

$

3,250

   

Kinetic Concepts

   

10.500

%

 

11/01/18

 

B–

 

$

3,599,375

   
  2,000    

Kinetic Concepts

   

12.500

%

 

11/01/19

 

CCC+

   

2,237,600

   
  4,000    

Tenet Healthcare Corporation

   

6.000

%

 

10/01/20

 

BB

   

4,180,000

   
  9,250    

Total Health Care Equipment & Supplies

                           

10,016,975

   
   

Health Care Providers & Services – 2.0% (1.2% of Total Investments)

 
  4,000    

Community Health Systems, Inc., 144A

   

5.125

%

 

8/01/21

 

BB+

   

4,030,000

   
  6,400    

Community Health Systems, Inc.

   

6.875

%

 

2/01/22

 

B

   

6,544,000

   
  725    

HCA Inc.

   

7.250

%

 

9/15/20

 

BB+

   

766,688

   
  1,200    

IASIS Healthcare Capital Corporation

   

8.375

%

 

5/15/19

 

CCC+

   

1,269,000

   
  1,000    

Truven Health Analytics Inc.

   

10.625

%

 

6/01/20

 

CCC+

   

1,085,000

   
  13,325    

Total Health Care Providers & Services

                           

13,694,688

   
   

Media – 4.0% (2.5% of Total Investments)

 
  1,762    

Clear Channel Communications, Inc.

   

10.000

%

 

1/15/18

 

CCC–

   

1,603,420

   
  6,562    

Clear Channel Communications, Inc.

   

9.000

%

 

12/15/19

 

CCC+

   

6,734,253

   
  7,800    

Clear Channel Communications, Inc.

   

14.000

%

 

2/01/21

 

CCC–

   

7,780,391

   
  9,500    

Clear Channel Communications, Inc.

   

9.000

%

 

3/01/21

 

CCC+

   

9,820,625

   
  1,875    

McGraw-Hill Global Education Holdings

   

9.750

%

 

4/01/21

 

BB

   

2,090,625

   
  27,499    

Total Media

                           

28,029,314

   
   

Pharmaceuticals – 1.1% (0.7% of Total Investments)

 
  2,000    

Valeant Pharmaceuticals International, 144A

   

6.750

%

 

8/15/18

 

B1

   

2,090,000

   
  1,000    

Valeant Pharmaceuticals International, 144A

   

7.000

%

 

10/01/20

 

B1

   

1,045,000

   
  1,000    

Valeant Pharmaceuticals International, 144A

   

7.250

%

 

7/15/22

 

B1

   

1,060,000

   
  3,000    

VPII Escrow Corporation, 144A

   

7.500

%

 

7/15/21

 

B1

   

3,240,000

   
  7,000    

Total Pharmaceuticals

                           

7,435,000

   
   

Professional Services – 0.1% (0.1% of Total Investments)

 
  1,000    

Ceridian Corporation, 144A

   

8.125

%

 

11/15/17

 

CCC

   

997,500

   
   

Real Estate Investment Trust – 0.2% (0.1% of Total Investments)

 
  1,500    

iStar Financial Inc.

   

4.000

%

 

11/01/17

 

BB–

   

1,477,500

   
   

Road & Rail – 0.3% (0.2% of Total Investments)

 
  2,000    

Swift Services Holdings Inc.

   

10.000

%

 

11/15/18

 

B+

   

2,135,000

   
   

Semiconductors & Equipment – 1.3% (0.8% of Total Investments)

 
  2,000    

Advanced Micro Devices, Inc., 144A

   

6.750

%

 

3/01/19

 

B

   

2,050,000

   
  1,000    

Advanced Micro Devices, Inc., 144A

   

7.000

%

 

7/01/24

 

B

   

975,000

   
  2,800    

Advanced Micro Devices, Inc.

   

7.750

%

 

8/01/20

 

B

   

2,884,000

   
  3,168    

Advanced Micro Devices, Inc.

   

7.500

%

 

8/15/22

 

B

   

3,278,880

   
  8,968    

Total Semiconductors & Equipment

                           

9,187,880

   
   

Software – 1.1% (0.7% of Total Investments)

 
  2,500    

BMC Software Finance Inc., 144A

   

8.125

%

 

7/15/21

 

CCC+

   

2,487,500

   
  1,500    

Boxer Parent Company Inc./BMC Software, 144A

   

9.000

%

 

10/15/19

 

CCC+

   

1,395,000

   
  1,700    

Infor Us Inc.

   

11.500

%

 

7/15/18

 

B–

   

1,899,750

   
  1,875    

Infor Us Inc.

   

9.375

%

 

4/01/19

 

B–

   

2,048,438

   
  7,575    

Total Software

                           

7,830,688

   
   

Trading Companies & Distributors – 0.3% (0.2% of Total Investments)

 
  2,000    

HD Supply Inc.

   

8.125

%

 

4/15/19

 

B+

   

2,160,000

   

Nuveen Investments
42



Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Wireless Telecommunication Services – 2.3% (1.4% of Total Investments)

 

$

750

   

FairPoint Communications Inc., 144A

   

8.750

%

 

8/15/19

 

B

 

$

802,500

   
 

8,250

   

Sprint Corporation, 144A

   

7.875

%

 

9/15/23

 

BB–

   

8,827,500

   
 

2,000

   

Sprint Corporation, 144A

   

7.125

%

 

6/15/24

 

BB–

   

2,040,000

   
 

3,750

   

T-Mobile USA Inc.

   

6.250

%

 

4/01/21

 

BB

   

3,918,748

   
 

14,750

   

Total Wireless Telecommunication Services

                           

15,588,748

   

$

123,978

   

Total Corporate Bonds (cost $124,363,494)

                           

129,204,491

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

ASSET-BACKED SECURITIES – 5.6% (3.5% of Total Investments)

 

$

1,200

   

Bluemountain Collateralized Loan Obligation, Series 2012 2A E14

   

5.329

%

 

11/20/24

 

BB

 

$

1,134,779

   
 

2,500

   

Bluemountain Collateralized Loan Obligations Limited 2012-1A, 144A

   

5.734

%

 

7/20/23

 

BB

   

2,437,092

   
 

500

   

Carlyle Global Market Strategies Collateralized Loan Obligations, Series 2013-2A E

   

5.234

%

 

4/18/25

 

BB

   

461,277

   
 

1,750

   

Carlyle Global Market Strategies, Collateralized Loan Obligations, Series 2013-3A, 144A

   

4.834

%

 

7/15/25

 

BB

   

1,585,147

   
 

1,000

   

Finn Square Collateralized Loan Obligations Limited, Series 2012-1A, 144A

   

5.281

%

 

12/24/23

 

BB

   

937,047

   
 

1,500

   

Flatiron Collateralized Loan Obligation Limited, Series 2011-1A

   

4.634

%

 

1/15/23

 

BB

   

1,365,366

   
 

500

   

ING Investment Management, Collateralized Loan Obligation, 2013-1A D, 144A

   

5.234

%

 

4/15/24

 

BB

   

460,877

   
 

2,700

   

LCM Limited Partnership, Collateralized Loan Obligation 2012A, 144A

   

5.984

%

 

10/19/22

 

BB

   

2,636,612

   
 

6,000

   

LCM Limited Partnership, Collateralized Loan Obligation, 2015A

   

5.227

%

 

2/25/17

 

BB–

   

5,521,806

   
 

3,000

   

LCM Limited Partnership, Collateralized Loan Obligation, Series 10AR, 144A

   

5.734

%

 

4/15/22

 

BB

   

2,955,555

   
 

1,500

   

LCM Limited Partnership, Collateralized Loan Obligation, Series 11A

   

5.384

%

 

4/19/22

 

BB

   

1,422,995

   
 

1,500

   

Madison Park Funding Limited, Collateralized Loan Obligations, Series 2012-8A, 144A

   

5.582

%

 

4/22/22

 

BB

   

1,462,754

   
 

1,500

   

Madison Park Funding Limited, Series 2012-10A

   

5.484

%

 

1/20/25

 

BB

   

1,427,780

   
 

500

   

North End CLO Limited, Loan Pool, 144A

   

4.833

%

 

7/17/25

 

BB

   

447,860

   
 

750

   

Northwoods Capital Corporation, Collateralized Loan Obligations 2012-9A

   

5.334

%

 

1/18/24

 

BB–

   

710,154

   
 

3,000

   

Oak Hill Credit Partners IV Limited, Collateralized Loan Obligation Series 2012-6A

   

5.724

%

 

5/15/23

 

BB

   

2,895,652

   
 

800

   

Oak Hill Credit Partners Series 2013-9A

   

5.234

%

 

10/20/25

 

BB–

   

742,910

   
 

3,360

   

Oak Hill Credit Partners, Series 2012-7A

   

5.229

%

 

11/20/23

 

BB

   

3,141,516

   
 

3,000

   

Race Point Collateralized Loan Obligation Series 2012-7A, 144A

   

5.225

%

 

11/08/24

 

BB–

   

2,795,343

   
 

1,000

   

Race Point Collateralized Loan Obligation Limited 2011-5AR, 144A

   

6.231

%

 

12/15/22

 

BB

   

1,001,138

   
 

3,000

   

Race Point Collateralized Loan Obligations, Series 2012-6A, 144A

   

5.727

%

 

5/24/23

 

BB

   

2,895,876

   

$

40,560

   

Total Asset-Backed Securities (cost $37,080,375)

                           

38,439,536

   

Shares

 

Description (1), (10)

             

Value

 
   

INVESTMENT COMPANIES – 1.7% (1.0% of Total Investments)

 
 

353,668

   

Eaton Vance Floating-Rate Income Trust Fund

                         

$

5,329,777

   
 

968,586

   

Eaton Vance Senior Income Trust

                           

6,537,955

   
        Total Investment Companies (cost $11,981,509)    

11,867,732

   
        Total Long-Term Investments (cost $1,031,535,253)    

1,040,267,129

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 9.4% (5.9% of Total Investments)

 

$

65,639

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 7/31/14,
repurchase price $65,639,189, collateralized by $62,595,000 U.S. Treasury Notes,
3.125%, due 5/15/19, value $66,955,618
  0.000
 
 

%

  8/01/14
 
 
   
 
 
 

$

65,639,189
 
 
 
        Total Short-Term Investments (cost $65,639,189)    

65,639,189

   
        Total Investments (cost $1,097,174,442) – 159.2%    

1,105,906,318

   
        Borrowings – (38.7)% (11), (12)    

(269,000,000

)

 
        Variable Rate Term Preferred Shares, at Liquidation Value – (20.0)% (13)    

(139,000,000

)

 
        Other Assets Less Liabilities – (0.5)% (14)    

(3,321,966

)

 
        Net Assets Applicable to Common Shares – 100%  

$

694,584,352

   

Nuveen Investments
43



JFR  Nuveen Floating Rate Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Investments in Derivatives as of July 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (14)
 

Morgan Stanley

 

$

49,435,000

   

Receive

 

1-Month USD-LIBOR-BBA

   

2.201

%

 

Monthly

 

4/20/16

 

$

(1,471,592

)

 

  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 applicable to common shares unless otherwise noted.

(2)  Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown.

(3)  Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. 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.

(4)  Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period.

(5)  At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund's custodian to cease accruing additional income on the Fund's records.

(6)  Investment, or portion of investment, represents an unfunded senior loan commitment outstanding. See Notes to Financial Statements, Note 8 – Senior Loan Commitments for more information.

(7)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(8)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(9)  Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Nuveen funds' Board of Directors/Trustees. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(10)  A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.

(11)  Borrowings as a percentage of Total Investments is 24.3%.

(12)  The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings.

(13)  Variable Rate Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 12.6%.

(14)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

DD1  Portion of investment purchased on a delayed delivery basis.

WI/DD  Purchased on a when-issued or delayed delivery basis.

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.

TBD  Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date.

USD-LIBOR-BBA  United States Dollar – London Inter-Bank Offered Rate British Bankers' Association.

See accompanying notes to financial statements.

Nuveen Investments
44



JRO

Nuveen Floating Rate Income Opportunity Fund

Portfolio of Investments  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

LONG-TERM INVESTMENTS – 152.3% (95.8% of Total Investments)

 
   

VARIABLE RATE SENIOR LOAN INTERESTS – 122.0% (76.7% of Total Investments) (4)

 
   

Aerospace & Defense – 0.4% (0.2% of Total Investments)

 

$

1,970

   

Sequa Corporation, Term Loan B

   

5.250

%

 

6/19/17

 

B

 

$

1,949,069

   
   

Airlines – 2.9% (1.8% of Total Investments)

 
  2,468    

American Airlines, Inc., Term Loan

   

3.750

%

 

6/27/19

 

Ba2

   

2,473,468

   
  5,900    

Delta Air Lines, Inc., Term Loan B1

   

3.250

%

 

10/18/18

 

Ba1

   

5,895,675

   
  2,955    

Delta Air Lines, Inc., Term Loan B2

   

2.403

%

 

4/18/16

 

Ba1

   

2,961,977

   
  2,970    

US Airways, Inc., Term Loan B1

   

3.500

%

 

5/23/19

 

Ba2

   

2,958,862

   
  14,293    

Total Airlines

                           

14,289,982

   
   

Automobiles – 3.5% (2.2% of Total Investments)

 
  9,975    

Chrysler Group LLC, Tranche B, Term Loan

   

3.250

%

 

12/31/18

 

BB+

   

9,945,574

   
  5,568    

Formula One Group, Term Loan, First Lien, WI/DD

 

TBD

 

TBD

 

B

   

5,528,163

   
  1,500    

Formula One Group, Term Loan, Second Lien, WI/DD

 

TBD

 

TBD

 

CCC+

   

1,503,750

   
  17,043    

Total Automobiles

                           

16,977,487

   
   

Building Products – 0.7% (0.4% of Total Investments)

 
  2,000    

Gates Global LLC, Term Loan

   

4.250

%

 

7/03/21

 

B+

   

1,989,822

   
  1,228    

Quikrete Holdings, Inc., Term Loan, First Lien

   

4.000

%

 

9/28/20

 

B+

   

1,230,021

   
  3,228    

Total Building Products

                           

3,219,843

   
   

Capital Markets – 1.7% (1.1% of Total Investments)

 
  2,837    

Citco III Limited, Term Loan B

   

4.250

%

 

6/29/18

 

N/R

   

2,847,274

   
  1,985    

Guggenheim Partners LLC, Initial Term Loan

   

4.250

%

 

7/22/20

 

N/R

   

1,986,241

   
  3,363    

RPI Finance Trust, Term Loan B3

   

3.250

%

 

11/09/18

 

Baa2

   

3,370,746

   
  8,185    

Total Capital Markets

                           

8,204,261

   
   

Chemicals – 2.2% (1.4% of Total Investments)

 
  2,464    

Ineos US Finance LLC, Cash Dollar, Term Loan

   

3.750

%

 

5/04/18

 

BB–

   

2,455,495

   
  6,000    

Mineral Technologies, Inc., Term Loan B, First Lien

   

4.000

%

 

5/07/21

 

BB

   

6,029,952

   
  1,478    

PQ Corporation, Term Loan B

   

4.000

%

 

8/07/17

 

B+

   

1,480,501

   
  163    

W.R Grace & Co., Delayed Draw, Term Loan, (6)

   

1.000

%

 

2/03/21

 

BBB–

   

163,038

   
  456    

W.R Grace & Co., Exit Term Loan

   

3.000

%

 

2/03/21

 

BBB–

   

455,366

   
  10,561    

Total Chemicals

                           

10,584,352

   
   

Commercial Services & Supplies – 3.6% (2.3% of Total Investments)

 
  985    

ADS Waste Holdings, Inc., Initial Term Loan, Tranche B2

   

3.750

%

 

10/09/19

 

B+

   

981,394

   
  1,352    

CCS Income Trust, Term Loan, First Lien

   

6.250

%

 

5/12/18

 

B–

   

1,358,841

   
  1,492    

Education Management LLC, Tranche C2, Term Loan

   

4.250

%

 

6/01/16

 

CCC–

   

982,049

   
  978    

HMH Holdings, Inc., Term Loan, First Lien

   

4.250

%

 

5/22/18

 

B1

   

982,388

   
  2,000    

International Lease Finance Corp., Term Loan

   

3.500

%

 

3/06/21

 

Ba1

   

1,999,642

   
  3,389    

iQor US, Inc., Term Loan, First Lien

   

6.000

%

 

4/01/21

 

B

   

3,261,806

   
  1,000    

iQor US, Inc., Term Loan, Second Lien

   

9.750

%

 

4/01/22

 

CCC+

   

952,500

   
  7,000    

Millennium Laboratories, Inc., Tranche B, Term Loan

   

5.250

%

 

4/16/21

 

B+

   

7,023,275

   
  18,196    

Total Commercial Services & Supplies

                           

17,541,895

   
   

Communications Equipment – 1.2% (0.8% of Total Investments)

 
  4,470    

Avaya, Inc., Term Loan B3

   

4.727

%

 

10/26/17

 

B1

   

4,334,750

   
  1,617    

Avaya, Inc., Term Loan B6

   

6.500

%

 

3/31/18

 

B1

   

1,610,259

   
  6,087    

Total Communications Equipment

                           

5,945,009

   

Nuveen Investments
45



JRO  Nuveen Floating Rate Income Opportunity Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Computers & Peripherals – 2.7% (1.7% of Total Investments)

 

$

12,903

   

Dell, Inc., Term Loan B

   

4.500

%

 

4/29/20

 

BB+

 

$

12,939,440

   
   

Diversified Consumer Services – 6.1% (3.8% of Total Investments)

 
  4,834    

Cengage Learning Acquisitions, Inc., Exit Term Loan

   

7.000

%

 

3/31/20

 

B+

   

4,875,213

   
  2,422    

Harland Clarke Holdings Corporation, Term Loan B3

   

7.000

%

 

5/22/18

 

B+

   

2,466,705

   
  1,481    

Harland Clarke Holdings Corporation, Term Loan B4

   

6.000

%

 

8/04/19

 

B+

   

1,508,653

   
  12,079    

Hilton Hotels Corporation, Term Loan B2

   

3.500

%

 

10/25/20

 

BB+

   

12,038,060

   
  2,791    

Laureate Education, Inc., Term Loan B

   

5.000

%

 

6/15/18

 

B

   

2,713,799

   
  2,654    

New Albertson's, Inc., Term Loan

   

4.750

%

 

6/24/21

 

Ba3

   

2,665,111

   
  3,357    

ServiceMaster Company, Term Loan

   

4.250

%

 

7/01/21

 

B+

   

3,340,861

   
  29,618    

Total Diversified Consumer Services

                           

29,608,402

   
   

Diversified Financial Services – 1.5% (1.0% of Total Investments)

 
  2,475    

Home Loan Servicing Solutions, Ltd., Term Loan B

   

4.500

%

 

6/26/20

 

BB–

   

2,486,603

   
  2,716    

Ocwen Financial Corporation, Term Loan B

   

5.000

%

 

2/15/18

 

B+

   

2,727,166

   
  2,250    

RCS Capital, Term Loan

   

6.500

%

 

4/29/19

 

B+

   

2,290,781

   
  7,441    

Total Diversified Financial Services

                           

7,504,550

   
   

Diversified Telecommunication Services – 5.6% (3.5% of Total Investments)

 
  1,084    

Greeneden U.S. Holdings II LLC, Term Loan B

   

4.000

%

 

2/08/20

 

B

   

1,076,999

   
  959    

Intelsat Jackson Holdings, S.A., Tranche B2, Term Loan

   

3.750

%

 

6/30/19

 

BB–

   

958,925

   
  2,667    

Level 3 Financing, Inc., Term Loan, Tranche B3

   

4.000

%

 

8/01/19

 

BB

   

2,661,251

   
  892    

Presidio, Inc., Term Loan B

   

5.000

%

 

3/31/17

 

B+

   

896,789

   
  1,250    

SBA Communication, Incremental Term Loan, Tranche B1

   

3.250

%

 

3/24/21

 

BB

   

1,239,062

   
  1,500    

TelX Group, Inc., Initial Term Loan, First Lien

   

4.500

%

 

4/09/20

 

B1

   

1,500,000

   
  750    

TelX Group, Inc., Initial Term Loan, Second Lien

   

7.500

%

 

4/09/21

 

CCC

   

750,938

   
  9,513    

WideOpenWest Finance LLC, Term Loan B

   

4.750

%

 

4/01/19

 

Ba3

   

9,557,186

   
  3,328    

Ziggo N.V., Term Loan B1, DD1

   

3.250

%

 

1/15/22

 

BB–

   

3,275,788

   
  2,145    

Ziggo N.V., Term Loan B2, DD1

   

3.250

%

 

1/15/22

 

BB–

   

2,110,979

   
  3,527    

Ziggo N.V., Term Loan B3, Delayed Draw, WI/DD

 

TBD

 

TBD

 

BB–

   

3,471,807

   
  27,615    

Total Diversified Telecommunication Services

                           

27,499,724

   
   

Electronic Equipment & Instruments – 0.5% (0.3% of Total Investments)

 
  2,525    

SMART Modular Technologies, Inc., Term Loan B

   

8.250

%

 

8/26/17

 

B

   

2,512,462

   
   

Energy Equipment & Services – 2.4% (1.5% of Total Investments)

 
  6,608    

Drill Rigs Holdings, Inc., Tranche B1, Term Loan

   

6.000

%

 

3/31/21

 

B+

   

6,674,374

   
  1,399    

Dynamic Energy Services International LLC, Term Loan

   

9.500

%

 

3/06/18

 

B–

   

1,391,964

   
  1,478    

Offshore Group Investment Limited, Term Loan B

   

5.000

%

 

10/25/17

 

B–

   

1,472,883

   
  1,978    

Pacific Drilling S.A., Term Loan B

   

4.500

%

 

6/03/18

 

B+

   

1,984,928

   
  11,463    

Total Energy Equipment & Services

                           

11,524,149

   
   

Food & Staples Retailing – 2.7% (1.7% of Total Investments)

 
  3,473    

Albertson's LLC, Term Loan B2

   

4.750

%

 

3/21/19

 

BB–

   

3,494,559

   
  3,320    

BJ's Wholesale Club, Inc., Replacement Loan, First Lien

   

4.500

%

 

9/26/19

 

B–

   

3,318,027

   
  2,500    

BJ's Wholesale Club, Inc., Replacement Loan, Second Lien

   

8.500

%

 

3/26/20

 

CCC

   

2,539,845

   
  1,175    

Rite Aid Corporation, Tranche 2, Term Loan, Second Lien

   

4.875

%

 

6/21/21

 

B

   

1,188,587

   
  2,652    

Supervalu, Inc., New Term Loan

   

4.500

%

 

3/21/19

 

B+

   

2,651,812

   
  13,120    

Total Food & Staples Retailing

                           

13,192,830

   
   

Food Products – 7.4% (4.7% of Total Investments)

 
  10,402    

H.J Heinz Company, Term Loan B2

   

3.500

%

 

6/05/20

 

BB

   

10,415,465

   
  1,500    

Hearthside Group Holdings, Term Loan, First Lien

   

4.500

%

 

6/02/21

 

B1

   

1,505,000

   
  6,000    

Jacobs Douwe Egberts, Term Loan B, WI/DD

 

TBD

 

TBD

 

BB

   

5,925,000

   
  1,925    

Pinnacle Foods Finance LLC, Term Loan G

   

3.250

%

 

4/29/20

 

BB

   

1,913,151

   
  12,232    

US Foods, Inc., Incremental Term Loan

   

4.500

%

 

3/31/19

 

B2

   

12,240,145

   
  4,500    

Wilton Products, Inc., Tranche B, Term Loan

   

7.500

%

 

8/30/18

 

B–

   

4,320,216

   
  36,559    

Total Food Products

                           

36,318,977

   

Nuveen Investments
46



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Health Care Equipment & Supplies – 2.6% (1.6% of Total Investments)

 

$

714

   

Ardent Medical Services, Inc., Term Loan, Second Lien

   

11.000

%

 

1/02/19

 

CCC+

 

$

718,452

   
  2,015    

ConvaTec, Inc., Dollar Term Loan

   

4.000

%

 

12/22/16

 

Ba3

   

2,018,517

   
  1,755    

Kinetic Concepts, Inc., Term Loan D1

   

4.000

%

 

5/04/18

 

BB–

   

1,757,069

   
  4,607    

Onex Carestream Finance LP, Term Loan, First Lien

   

5.000

%

 

6/07/19

 

B+

   

4,620,075

   
  2,553    

Onex Carestream Finance LP, Term Loan, Second Lien

   

9.500

%

 

12/07/19

 

B–

   

2,603,721

   
  983    

United Surgical Partners International, Inc., Incremental Term Loan

   

4.750

%

 

4/03/19

 

B1

   

985,633

   
  12,627    

Total Health Care Equipment & Supplies

                           

12,703,467

   
   

Health Care Providers & Services – 5.2% (3.3% of Total Investments)

 
  470    

BioScrip, Inc., Delayed Draw, Term Loan

   

6.500

%

 

7/31/20

 

B1

   

476,339

   
  783    

BioScrip, Inc., Initial Term Loan B

   

6.500

%

 

7/31/20

 

B1

   

793,899

   
  3,980    

Community Health Systems, Inc., Term Loan D

   

4.250

%

 

1/27/21

 

BB

   

3,994,925

   
  1,902    

DaVita HealthCare Partners, Inc., Tranche B, Term Loan

   

3.500

%

 

6/24/21

 

Ba1

   

1,901,785

   
  7,861    

Drumm Investors LLC, Term Loan

   

6.750

%

 

5/04/18

 

B

   

7,877,768

   
  878    

Genesis Healthcare LLC, Term Loan

   

10.000

%

 

12/04/17

 

B

   

897,456

   
  1,478    

Heartland Dental Care, Inc., Term Loan, First Lien

   

5.500

%

 

12/21/18

 

B1

   

1,485,528

   
  1,500    

Heartland Dental Care, Inc., Term Loan, Second Lien

   

9.750

%

 

6/21/19

 

CCC+

   

1,536,562

   
  1,303    

LHP Operations Co. LLC, Term Loan B

   

9.000

%

 

7/03/18

 

B–

   

1,247,274

   
  1,627    

National Mentor Holdings, Inc., Term Loan B

   

4.750

%

 

1/31/21

 

B1

   

1,634,298

   
  2,985    

One Call Care Management, Inc., Term Loan B

   

5.000

%

 

11/27/20

 

B1

   

2,993,582

   
  608    

Skilled Healthcare Group, Inc., Term Loan

   

7.000

%

 

4/09/16

 

B

   

608,345

   
  25,375    

Total Health Care Providers & Services

                           

25,447,761

   
   

Health Care Technology – 0.6% (0.4% of Total Investments)

 
  3,150    

Catalent Pharma Solutions, Inc., Term Loan

   

4.500

%

 

5/20/21

 

BB–

   

3,166,982

   
   

Hotels, Restaurants & Leisure – 4.3% (2.7% of Total Investments)

 
  1,712    

Caesars Entertainment Operating Company, Inc., Term Loan B6

   

6.963

%

 

1/28/18

 

Caa1

   

1,598,483

   
  2,550    

CCM Merger, Inc., Term Loan

   

6.000

%

 

3/01/17

 

B+

   

2,553,134

   
  3,864    

CityCenter Holdings LLC, Term Loan

   

4.250

%

 

10/24/20

 

B

   

3,878,866

   
  1,400    

Extended Stay America, Inc., Term Loan

   

5.000

%

 

6/24/19

 

B+

   

1,421,000

   
  1,990    

Intrawest Resorts Holdings, Inc., Initial Term Loan

   

5.500

%

 

12/09/20

 

B+

   

2,029,800

   
  1,639    

Landry's Restaraunts, Inc., Term Loan B

   

4.000

%

 

4/24/18

 

BB–

   

1,644,237

   
  1,970    

MGM Resorts International, Term Loan B

   

3.500

%

 

12/20/19

 

BB

   

1,960,971

   
  2,985    

Scientific Games Corporation, Term Loan B

   

4.250

%

 

10/18/20

 

BB–

   

2,946,888

   
  2,869    

Station Casino LLC, Term Loan B

   

4.250

%

 

3/02/20

 

B1

   

2,872,538

   
  20,979    

Total Hotels, Restaurants & Leisure

                           

20,905,917

   
   

Household Durables – 0.4% (0.2% of Total Investments)

 
  970    

Serta Simmons Holdings LLC, Term Loan

   

4.250

%

 

10/01/19

 

B+

   

971,294

   
  795    

Tempur-Pedic International, Inc., New Term Loan B

   

3.500

%

 

3/18/20

 

BB

   

794,659

   
  1,765    

Total Household Durables

                           

1,765,953

   
   

Household Products – 0.1% (0.0% of Total Investments)

 
  340    

Spectrum Brands, Inc., Term Loan C

   

3.500

%

 

9/04/19

 

BB

   

340,758

   
   

Industrial Conglomerates – 0.4% (0.3% of Total Investments)

 
  1,990    

Brand Energy & Infrastructure Services, Inc., Initial Term Loan

   

4.750

%

 

11/26/20

 

B1

   

1,993,908

   
   

Insurance – 2.2% (1.4% of Total Investments)

 
  1,475    

Alliant Holdings I LLC, Initial Term Loan B, First Lien

   

4.250

%

 

12/20/19

 

B1

   

1,478,777

   
  4,470    

Hub International Holdings, Inc., Initial Term Loan

   

4.250

%

 

10/02/20

 

B1

   

4,464,052

   
  4,691    

USI Holdings Corporation, Initial Term Loan

   

4.250

%

 

12/27/19

 

B1

   

4,698,271

   
  10,636    

Total Insurance

                           

10,641,100

   

Nuveen Investments
47



JRO  Nuveen Floating Rate Income Opportunity Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Internet Software & Services – 0.9% (0.6% of Total Investments)

 

$

744

   

Sabre Inc., Term Loan B2

   

4.500

%

 

2/19/19

 

Ba3

 

$

745,693

   
  290    

Sabre Inc., Term Loan C

   

4.000

%

 

2/18/18

 

Ba3

   

290,678

   
  3,448    

Sabre Inc., Term Loan

   

4.250

%

 

2/18/19

 

Ba3

   

3,442,832

   
  4,482    

Total Internet Software & Services

                           

4,479,203

   
   

IT Services – 2.2% (1.4% of Total Investments)

 
  6,905    

EIG Investors Corp., Term Loan

   

5.000

%

 

11/09/19

 

B

   

6,939,851

   
  2,188    

Vantiv, Inc., Term Loan B

   

3.750

%

 

6/13/21

 

BB+

   

2,198,438

   
  1,460    

VFH Parent LLC, New Term Loan

   

5.750

%

 

11/08/19

 

N/R

   

1,447,195

   
  130    

Zayo Group LLC, Term Loan B

   

4.000

%

 

7/02/19

 

B1

   

129,136

   
  10,683    

Total IT Services

                           

10,714,620

   
   

Leisure Equipment & Products – 2.1% (1.3% of Total Investments)

 
  3,000    

24 Hour Fitness Worldwide, Inc., Term Loan B

   

4.750

%

 

5/28/21

 

Ba3

   

3,014,043

   
  4,030    

Bombardier Recreational Products, Inc., Term Loan

   

4.000

%

 

1/30/19

 

B+

   

4,024,962

   
  2,173    

Equinox Holdings, Inc., New Initial Term Loan B

   

4.250

%

 

1/31/20

 

Ba3

   

2,180,647

   
  1,000    

Four Seasons Holdings, Inc., Term Loan, Second Lien

   

6.250

%

 

12/27/20

 

B–

   

1,011,250

   
  10,203    

Total Leisure Equipment & Products

                           

10,230,902

   
   

Machinery – 1.1% (0.7% of Total Investments)

 
  4,333    

Doosan Infracore International, Inc., Term Loan

   

4.500

%

 

5/27/21

 

BB–

   

4,356,768

   
  1,003    

Rexnord LLC, Term Loan B

   

4.000

%

 

8/21/20

 

BB–

   

1,002,103

   
  5,336    

Total Machinery

                           

5,358,871

   
   

Media – 20.7% (13.0% of Total Investments)

 
  87    

Advantage Sales & Marketing, Inc., Delayed Draw, Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

86,801

   
  2,613    

Advantage Sales & Marketing, Inc., Term Loan, First Lien

   

4.250

%

 

7/11/21

 

B1

   

2,604,038

   
  1,450    

Advantage Sales & Marketing, Inc., Term Loan, Second Lien, DD1

   

7.500

%

 

7/11/22

 

CCC+

   

1,456,645

   
  2,221    

Affinion Group Holdings, Inc., Initial Term Loan, Second Lien

   

8.500

%

 

10/31/18

 

B3

   

2,193,690

   
  1,337    

Affinion Group Holdings, Inc., Term Loan, First Lien

   

6.750

%

 

4/30/18

 

B1

   

1,327,451

   
  3,500    

Catalina Marketing Corporation, Term Loan, First Lien

   

4.500

%

 

4/09/21

 

B+

   

3,508,750

   
  1,500    

Catalina Marketing Corporation, Term Loan, Second Lien

   

7.750

%

 

4/11/22

 

CCC+

   

1,496,250

   
  3,678    

Clear Channel Communications, Inc., Tranche D, Term Loan

   

6.905

%

 

1/30/19

 

CCC+

   

3,620,215

   
  2,646    

Clear Channel Communications, Inc. Term Loan E

   

7.655

%

 

7/30/19

 

CCC+

   

2,647,385

   
  10,437    

Cumulus Media, Inc., Term Loan B

   

4.250

%

 

12/23/20

 

B+

   

10,471,558

   
  2,725    

Emerald Expositions Holdings, Inc., Term Loan, First Lien

   

4.750

%

 

6/17/20

 

BB–

   

2,744,117

   
  959    

EMI Music Publishing LLC, Term Loan B

   

3.750

%

 

6/29/18

 

BB–

   

957,333

   
  667    

Gray Television, Inc., Initial Term Loan

   

3.750

%

 

6/13/21

 

BB

   

667,813

   
  2,000    

IMG Worldwide, Inc., First Lien

   

5.250

%

 

5/06/21

 

B1

   

1,990,834

   
  3,250    

Interactive Data Corporation, Term Loan B

   

4.750

%

 

5/02/21

 

B+

   

3,267,267

   
  2,535    

McGraw-Hill Education Holdings LLC, Refinancing Term Loan

   

5.750

%

 

3/22/19

 

B+

   

2,562,860

   
  2,488    

McGraw-Hill Education Holdings LLC, Term Loan B

   

6.250

%

 

12/18/19

 

B+

   

2,513,930

   
  1,855    

Media General, Inc., Delayed Draw, Term Loan

   

4.250

%

 

7/31/20

 

BB–

   

1,864,922

   
  1,965    

Mediacom Broadband LLC, Tranche G, Term Loan

   

4.000

%

 

1/20/20

 

BB

   

1,966,212

   
  3,753    

Numericable Group S.A., Term Loan B1

   

4.500

%

 

5/21/20

 

Ba3

   

3,768,618

   
  3,247    

Numericable Group S.A., Term Loan B2

   

4.500

%

 

5/21/20

 

Ba3

   

3,260,369

   
  3,394    

Radio One, Inc., Term Loan B, First Lien

   

7.500

%

 

3/31/16

 

B+

   

3,444,892

   
  1,985    

Springer Science & Business Media, Inc., Term Loan B3, WI/DD

 

TBD

 

TBD

 

N/R

   

2,658,014

   
  27,590    

Tribune Company, Term Loan B

   

4.000

%

 

12/27/20

 

BB+

   

27,603,925

   
  8,493    

Univision Communications, Inc., Replacement Term Loan, First Lien

   

4.000

%

 

3/01/20

 

B+

   

8,450,704

   
  1,520    

Weather Channel Corporation, Term Loan, Second Lien

   

7.000

%

 

6/26/20

 

B3

   

1,498,271

   
  1,489    

WMG Acquisition Corporation, Tranche B, Refinancing Term Loan

   

3.750

%

 

7/01/20

 

B+

   

1,461,457

   
  699    

Yell Group PLC, Term Loan A2

   

5.231

%

 

3/01/19

 

CCC+

   

676,248

   
  82    

Yell Group PLC, Term Loan A2

   

0.000

%

 

3/03/19

 

CCC+

   

   
  1,286    

Yell Group PLC, Term Loan B2, Payment in Kind

   

0.000

%

 

3/03/24

 

CCC–

   

   
  101,451    

Total Media

                           

100,770,569

   

Nuveen Investments
48



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Multiline Retail – 1.4% (0.9% of Total Investments)

 

$

3,700

   

Hudson's Bay Company, Term Loan B, First Lien

   

4.750

%

 

11/04/20

 

BB

 

$

3,734,688

   
  2,875    

J.C. Penney Corporation, Inc., Term Loan

   

5.000

%

 

6/20/19

 

B

   

2,891,876

   
  6,575    

Total Multiline Retail

                           

6,626,564

   
   

Oil, Gas & Consumable Fuels – 5.9% (3.7% of Total Investments)

 
  1,493    

Western Refining, Inc., Term Loan B

   

4.250

%

 

11/12/20

 

BB–

   

1,499,962

   
  589    

CITGO Petroleum Corporation, Term Loan B

   

4.500

%

 

7/23/21

 

BB+

   

592,968

   
  2,653    

Crestwood Holdings LLC, Term Loan B

   

7.000

%

 

6/19/19

 

B

   

2,709,916

   
  4,000    

Energy and Exploration Partners, Term Loan

   

7.750

%

 

1/15/19

 

N/R

   

3,945,000

   
  333    

EP Energy LLC, Term Loan B3, Second Lien

   

3.500

%

 

5/24/18

 

Ba3

   

332,535

   
  2,108    

Fieldwood Energy LLC, Term Loan, First Lien

   

3.875

%

 

9/28/18

 

Ba2

   

2,112,710

   
  5,830    

Fieldwood Energy LLC, Term Loan, Second Lien

   

8.375

%

 

9/30/20

 

B2

   

5,981,660

   
  1,706    

Frac Tech International LLC, Term Loan B

   

5.750

%

 

4/16/21

 

B2

   

1,724,612

   
  1,161    

Harvey Gulf International Marine, Inc., Term Loan B

   

5.500

%

 

6/18/20

 

B1

   

1,157,233

   
  982    

Peabody Energy Corporation, Term Loan B

   

4.250

%

 

9/24/20

 

Ba1

   

982,309

   
  1,667    

Samson Investment Company, Tranche 1, Term Loan, Second Lien

   

5.000

%

 

9/25/18

 

B1

   

1,664,882

   
  4,704    

Seadrill Partners LLC, Initial Term Loan

   

4.000

%

 

2/21/21

 

BB–

   

4,657,095

   
  610    

Southcross Energy Partners L.P., Opco Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

613,552

   
  915    

Southcross Holdings Borrower L.P., Holdco Term Loan, WI/DD

 

TBD

 

TBD

 

B2

   

919,768

   
  28,751    

Total Oil, Gas & Consumable Fuels

                           

28,894,202

   
   

Pharmaceuticals – 6.5% (4.1% of Total Investments)

 
  1,876    

Auxilium Pharmaceuticals, Inc., Term Loan

   

6.250

%

 

4/26/17

 

Ba3

   

1,879,768

   
  1,188    

Generic Drug Holdings, Inc., Term Loan B

   

5.000

%

 

8/16/20

 

B1

   

1,194,312

   
  3,125    

Graceway Pharmaceuticals LLC, Second Lien Term Loan, (5)

   

0.000

%

 

5/03/13

 

N/R

   

62,500

   
  62    

Graceway Pharmaceuticals LLC, Term Loan, (5)

   

0.000

%

 

5/03/12

 

N/R

   

68,213

   
  5,486    

Grifols, Inc., Term Loan

   

3.155

%

 

2/27/21

 

Ba1

   

5,468,678

   
  2,241    

Par Pharmaceutical Companies, Inc., Term Loan B2

   

4.000

%

 

9/30/19

 

B1

   

2,239,365

   
  3,000    

Patheon, Inc., Term Loan B, DD1

   

4.250

%

 

3/11/21

 

B

   

2,981,250

   
  2,365    

Pharmaceutical Product Development, Inc., Term Loan B, First Lien

   

4.000

%

 

12/01/18

 

Ba3

   

2,369,904

   
  4,714    

Pharmaceutical Research Associates, Inc., Term Loan

   

4.500

%

 

9/23/20

 

B1

   

4,702,589

   
  2,860    

Quintiles Transnational Corp., Term Loan B3

   

3.750

%

 

6/08/18

 

BB

   

2,861,421

   
  1,950    

Salix Pharmaceuticals, LTD., Term Loan

   

4.250

%

 

1/02/20

 

Ba1

   

1,961,273

   
  1,931    

Therakos, Inc., Term Loan, First Lien

   

7.500

%

 

12/27/17

 

B

   

1,945,919

   
  1,418    

Valeant Pharmaceuticals International, Inc., Term Loan E

   

3.750

%

 

8/05/20

 

Ba1

   

1,417,273

   
  2,680    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan D2

   

3.750

%

 

2/13/19

 

Ba1

   

2,679,584

   
  34,896    

Total Pharmaceuticals

                           

31,832,049

   
   

Professional Services – 0.1% (0.0% of Total Investments)

 
  306    

Ceridian Corporation, New Replacement Term Loan

   

4.405

%

 

5/09/17

 

B1

   

307,239

   
   

Real Estate Investment Trust – 2.5% (1.6% of Total Investments)

 
  3,950    

Realogy Corporation, Initial Term Loan B

   

3.750

%

 

3/05/20

 

BB

   

3,956,324

   
  4,454    

Starwood Property Trust, Inc., Term Loan B

   

3.500

%

 

4/17/20

 

BB+

   

4,437,668

   
  3,996    

Walter Investment Management Corporation, Tranche B, Term Loan, First Lien

   

4.750

%

 

12/18/20

 

B+

   

3,949,803

   
  12,400    

Total Real Estate Investment Trust

                           

12,343,795

   
   

Real Estate Management & Development – 1.6% (1.0% of Total Investments)

 
  2,000    

Capital Automotive LP, Term Loan, Second Lien

   

6.000

%

 

4/30/20

 

B1

   

2,050,834

   
  5,939    

Capital Automotive LP, Term Loan, Tranche B1

   

4.000

%

 

4/10/19

 

Ba2

   

5,964,307

   
  7,939    

Total Real Estate Management & Development

                           

8,015,141

   
   

Semiconductors & Equipment – 3.2% (2.0% of Total Investments)

 
  7,000    

Avago Technologies, Term Loan B

   

3.750

%

 

5/06/21

 

BBB–

   

6,994,512

   
  4,953    

Freescale Semiconductor, Inc., Term Loan, Tranche B4

   

4.250

%

 

2/28/20

 

B1

   

4,934,813

   
  1,985    

Freescale Semiconductor, Inc., Term Loan, Tranche B5

   

5.000

%

 

1/15/21

 

B1

   

1,990,584

   
  1,957    

NXP Semiconductor LLC, Term Loan D

   

3.250

%

 

1/11/20

 

BB+

   

1,945,116

   
  15,895    

Total Semiconductors & Equipment

                           

15,865,025

   

Nuveen Investments
49



JRO  Nuveen Floating Rate Income Opportunity Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Software – 8.4% (5.3% of Total Investments)

 

$

2,000

   

Ascend Learning LLC, Term Loan, Second Lien

   

9.500

%

 

11/27/20

 

CCC+

 

$

2,012,500

   
  3,652    

Attachmate Corporation, Term Loan, First Lien

   

7.250

%

 

11/22/17

 

BB–

   

3,697,910

   
  4,257    

Blackboard, Inc., Term Loan B3

   

4.750

%

 

10/04/18

 

B+

   

4,279,263

   
  5,281    

BMC Software, Inc., Initial Term Loan

   

5.000

%

 

9/10/20

 

B1

   

5,254,296

   
  1,701    

Datatel Parent Corp, Term Loan B1

   

4.000

%

 

7/19/18

 

B+

   

1,699,301

   
  1,000    

Deltek, Inc., Term Loan, Second Lien

   

10.000

%

 

10/10/19

 

CCC+

   

1,022,500

   
  2,933    

Emdeon Business Services LLC, Term Loan B2

   

3.750

%

 

11/02/18

 

BB–

   

2,934,515

   
  1,906    

Explorer Holdings, Inc., Term Loan

   

6.000

%

 

5/02/18

 

B+

   

1,913,057

   
  11,186    

Infor Global Solutions Intermediate Holdings, Ltd., Term Loan B5

   

3.750

%

 

6/03/20

 

Ba3

   

11,109,714

   
  4,667    

Misys PLC, Term Loan B, First Lien

   

5.000

%

 

12/12/18

 

B+

   

4,702,404

   
  2,179    

SunGard Data Systems, Inc., Term Loan E

   

4.000

%

 

3/08/20

 

BB

   

2,186,704

   
  40,762    

Total Software

                           

40,812,164

   
   

Specialty Retail – 0.6% (0.4% of Total Investments)

 
  2,027    

Jo-Ann Stores, Inc., Term Loan, First Lien

   

4.000

%

 

3/16/18

 

B+

   

2,023,674

   
  1,000    

Michaels Stores, Inc., Term Loan B2

   

4.000

%

 

1/28/20

 

Ba3

   

996,875

   
  3,027    

Total Specialty Retail

                           

3,020,549

   
   

Textiles, Apparel & Luxury Goods – 0.5% (0.3% of Total Investments)

 
  223    

Polymer Group, Inc., Amendment No. 1, Delayed Draw, Incremental Loan, (6)

   

4.149

%

 

12/19/19

 

B–

   

224,285

   
  2,272    

Polymer Group, Inc., Initial Term Loan

   

5.250

%

 

12/19/19

 

B2

   

2,283,790

   
  2,495    

Total Textiles, Apparel & Luxury Goods

                           

2,508,075

   
   

Trading Companies & Distributors – 1.3% (0.8% of Total Investments)

 
  4,683    

HD Supply, Inc., Term Loan

   

4.000

%

 

6/28/18

 

B+

   

4,686,926

   
  1,500    

Neff Rental/Neff Finance Closing Date Loan, Second Lien

   

7.250

%

 

6/09/21

 

CCC+

   

1,495,312

   
  6,183    

Total Trading Companies & Distributors

                           

6,182,238

   
   

Transportation Infrastructure – 0.2% (0.1% of Total Investments)

 
  47    

Ceva Group PLC, Canadian Term Loan

   

6.500

%

 

3/19/21

 

B2

   

45,767

   
  271    

Ceva Group PLC, Dutch B.V., Term Loan

   

6.500

%

 

3/19/21

 

B2

   

265,448

   
  257    

Ceva Group PLC, Synthetic Letter of Credit Term Loan

   

0.134

%

 

3/19/21

 

B2

   

252,442

   
  373    

Ceva Group PLC, US Term Loan

   

6.500

%

 

3/19/21

 

B2

   

366,271

   
  948    

Total Transportation Infrastructure

                           

929,928

   
   

Wireless Telecommunication Services – 1.9% (1.2% of Total Investments)

 
  4,424    

Asurion LLC, Term Loan B1

   

5.000

%

 

5/24/19

 

Ba3

   

4,449,729

   
  3,208    

Fairpoint Communications, Inc., Term Loan B

   

7.500

%

 

2/11/19

 

B

   

3,312,342

   
  1,500    

UPC Broadband Holding BV, Term Loan AH

   

3.250

%

 

6/30/21

 

BB–

   

1,486,126

   
  9,132    

Total Wireless Telecommunication Services

                           

9,248,197

   

$

599,133

   

Total Variable Rate Senior Loan Interests (cost $595,535,970)

                           

594,917,609

   
Shares  

Description (1)

             

Value

 
   

COMMON STOCKS – 3.5% (2.2% of Total Investments)

 
   

Diversified Consumer Services – 0.5% (0.3% of Total Investments)

 
  71,949    

Cengage Learning Holdings II LP, (7), (8)

                         

$

2,482,241

   
   

Hotels, Restaurants & Leisure – 0.3% (0.2% of Total Investments)

 
  42,041    

BLB Worldwide Holdings Inc., (7), (8)

                           

1,508,220

   
   

Media – 2.7% (1.7% of Total Investments)

 
  5,749    

Cumulus Media, Inc., (7)

                           

29,780

   
  119,359    

Metro-Goldwyn-Mayer, (7), (8)

                           

9,190,643

   
  44,843    

Tribune Company, (7)

                           

3,699,548

   
  36,087    

Tribune Company, (7), (9)

                           

   
  11,211    

Tribune Publishing Company, (7)

                           

235,762

   
      Total Media    

13,155,733

   

Nuveen Investments
50



Shares  

Description (1)

             

Value

 
   

Software – 0.0% (0.0% of Total Investments)

 
  496,552    

Eagle Topco LP, (7), (8)

                         

$

1

   
      Total Common Stocks (cost $11,932,251)    

17,146,195

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CONVERTIBLE BONDS – 0.3% (0.2% of Total Investments)

 
   

Communications Equipment – 0.3% (0.2% of Total Investments)

 

$

550

   

Nortel Networks Corp., (5)

   

1.750

%

 

4/15/12

 

N/R

 

$

556,875

   
  1,000    

Nortel Networks Corp., (5)

   

2.125

%

 

4/15/14

 

N/R

   

1,015,000

   

$

1,550

   

Total Convertible Bonds (cost $1,307,500)

                           

1,571,875

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 21.2% (13.4% of Total Investments)

 
   

Commercial Services & Supplies – 0.2% (0.1% of Total Investments)

 

$

900

   

NES Rental Holdings Inc., 144A

   

7.875

%

 

5/01/18

 

CCC+

 

$

936,000

   
   

Communications Equipment – 1.0% (0.6% of Total Investments)

 
  2,000    

Avaya Inc., 144A

   

10.500

%

 

3/01/21

 

CCC+

   

1,750,000

   
  3,000    

Nortel Networks Limited, (5)

   

0.000

%

 

7/15/11

 

N/R

   

3,285,000

   
  5,000    

Total Communications Equipment

                           

5,035,000

   
   

Consumer Finance – 0.4% (0.3% of Total Investments)

 
  2,000    

First Data Corporation, 144A

   

7.375

%

 

6/15/19

 

BB–

   

2,100,000

   
   

Containers & Packaging – 0.9% (0.5% of Total Investments)

 
  3,950    

Reynolds Group

   

9.875

%

 

8/15/19

 

CCC+

   

4,256,125

   
   

Diversified Telecommunication Services – 1.7% (1.1% of Total Investments)

 
  2,900    

IntelSat Limited

   

7.750

%

 

6/01/21

 

B–

   

2,965,250

   
  1,750    

IntelSat Limited

   

8.125

%

 

6/01/23

 

B–

   

1,820,000

   
  3,343    

Level 3 Communications Inc.

   

11.875

%

 

2/01/19

 

B

   

3,668,943

   
  7,993    

Total Diversified Telecommunication Services

                           

8,454,193

   
   

Energy Equipment & Services – 0.1% (0.1% of Total Investments)

 
  500    

Offshore Group Investment Limited

   

7.125

%

 

4/01/23

 

B–

   

493,750

   
   

Health Care Equipment & Supplies – 1.8% (1.1% of Total Investments)

 
  3,000    

Kinetic Concepts

   

10.500

%

 

11/01/18

 

B–

   

3,322,500

   
  2,000    

Kinetic Concepts

   

12.500

%

 

11/01/19

 

CCC+

   

2,237,600

   
  3,000    

Tenet Healthcare Corporation

   

6.000

%

 

10/01/20

 

BB

   

3,135,000

   
  8,000    

Total Health Care Equipment & Supplies

                           

8,695,100

   
   

Health Care Providers & Services – 2.2% (1.4% of Total Investments)

 
  3,000    

Community Health Systems, Inc., 144A

   

5.125

%

 

8/01/21

 

BB+

   

3,022,500

   
  4,800    

Community Health Systems, Inc.

   

6.875

%

 

2/01/22

 

B

   

4,908,000

   
  575    

HCA Inc.

   

7.250

%

 

9/15/20

 

BB+

   

608,063

   
  900    

IASIS Healthcare Capital Corporation

   

8.375

%

 

5/15/19

 

CCC+

   

951,750

   
  1,000    

Truven Health Analytics Inc.

   

10.625

%

 

6/01/20

 

CCC+

   

1,085,000

   
  10,275    

Total Health Care Providers & Services

                           

10,575,313

   
   

Machinery – 0.2% (0.1% of Total Investments)

 
  1,030    

Xerium Technologies

   

8.875

%

 

6/15/18

 

B

   

1,091,800

   

Nuveen Investments
51



JRO  Nuveen Floating Rate Income Opportunity Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Media – 5.2% (3.3% of Total Investments)

 

$

1,714

   

Clear Channel Communications, Inc.

   

10.000

%

 

1/15/18

 

CCC–

 

$

1,559,740

   
  6,412    

Clear Channel Communications, Inc.

   

9.000

%

 

12/15/19

 

CCC+

   

6,580,315

   
  7,784    

Clear Channel Communications, Inc.

   

14.000

%

 

2/01/21

 

CCC–

   

7,764,692

   
  7,000    

Clear Channel Communications, Inc.

   

9.000

%

 

3/01/21

 

CCC+

   

7,236,250

   
  1,200    

Expo Event Transco Inc., 144A

   

9.000

%

 

6/15/21

 

B–

   

1,242,000

   
  1,000    

McGraw-Hill Global Education Holdings

   

9.750

%

 

4/01/21

 

BB

   

1,115,000

   
  25,110    

Total Media

                           

25,497,997

   
   

Pharmaceuticals – 1.4% (0.9% of Total Investments)

 
  1,250    

Valeant Pharmaceuticals International, 144A

   

6.750

%

 

8/15/18

 

B1

   

1,306,250

   
  2,000    

Valeant Pharmaceuticals International, 144A

   

7.000

%

 

10/01/20

 

B1

   

2,090,000

   
  1,000    

Valeant Pharmaceuticals International, 144A

   

7.250

%

 

7/15/22

 

B1

   

1,060,000

   
  2,000    

VPII Escrow Corporation, 144A

   

7.500

%

 

7/15/21

 

B1

   

2,160,000

   
  6,250    

Total Pharmaceuticals

                           

6,616,250

   
   

Professional Services – 0.1% (0.1% of Total Investments)

 
  500    

Ceridian Corporation, 144A

   

8.125

%

 

11/15/17

 

CCC

   

498,750

   
   

Real Estate Investment Trust – 0.3% (0.2% of Total Investments)

 
  1,250    

iStar Financial Inc.

   

4.000

%

 

11/01/17

 

BB–

   

1,231,250

   
   

Semiconductors & Equipment – 1.4% (0.9% of Total Investments)

 
  2,000    

Advanced Micro Devices, Inc., 144A

   

6.750

%

 

3/01/19

 

B

   

2,050,000

   
  2,050    

Advanced Micro Devices, Inc.

   

7.750

%

 

8/01/20

 

B

   

2,111,500

   
  2,500    

Advanced Micro Devices, Inc.

   

7.500

%

 

8/15/22

 

B

   

2,587,500

   
  6,550    

Total Semiconductors & Equipment

                           

6,749,000

   
   

Software – 1.2% (0.7% of Total Investments)

 
  1,750    

BMC Software Finance Inc., 144A

   

8.125

%

 

7/15/21

 

CCC+

   

1,741,250

   
  1,100    

Boxer Parent Company Inc./BMC Software, 144A

   

9.000

%

 

10/15/19

 

CCC+

   

1,023,000

   
  850    

Infor Us Inc.

   

11.500

%

 

7/15/18

 

B–

   

949,875

   
  1,875    

Infor Us Inc.

   

9.375

%

 

4/01/19

 

B–

   

2,048,438

   
  5,575    

Total Software

                           

5,762,563

   
   

Specialty Retail – 0.1% (0.1% of Total Investments)

 
  500     99 Cents Only Stores    

11.000

%

 

12/15/19

 

CCC+

   

547,500

   
   

Trading Companies & Distributors – 0.2% (0.1% of Total Investments)

 
  1,000    

HD Supply Inc.

   

8.125

%

 

4/15/19

 

B+

   

1,080,000

   
   

Wireless Telecommunication Services – 2.8% (1.8% of Total Investments)

 
  750    

FairPoint Communications Inc., 144A

   

8.750

%

 

8/15/19

 

B

   

802,500

   
  7,250    

Sprint Corporation, 144A

   

7.875

%

 

9/15/23

 

BB–

   

7,757,499

   
  2,000    

Sprint Corporation, 144A

   

7.125

%

 

6/15/24

 

BB–

   

2,040,000

   
  2,750    

T-Mobile USA Inc.

   

6.250

%

 

4/01/21

 

BB

   

2,873,748

   
  175    

T-Mobile USA Inc.

   

6.731

%

 

4/28/22

 

BB

   

183,313

   
  175    

T-Mobile USA Inc.

   

6.836

%

 

4/28/23

 

BB

   

185,500

   
  13,100    

Total Wireless Telecommunication Services

                           

13,842,560

   

$

99,483

   

Total Corporate Bonds (cost $99,380,321)

                           

103,463,151

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

ASSET-BACKED SECURITIES – 5.3% (3.3% of Total Investments)

 

$

800

   

Bluemountain Collateralized Loan Obligation, Series 2012 2A E14

   

5.329

%

 

11/20/24

 

BB

 

$

756,519

   
  2,500    

Bluemountain Collateralized Loan Obligations Limited 2012-1A, 144A

   

5.734

%

 

7/20/23

 

BB

   

2,437,091

   
  1,250    

Carlyle Global Market Strategies, Collateralized Loan Obligations, Series 2013-3A, 144A

   

4.834

%

 

7/15/25

 

BB

   

1,132,248

   
  1,500    

Flatiron Collateralized Loan Obligation Limited, Series 2011-1A

   

4.634

%

 

1/15/23

 

BB

   

1,365,366

   

Nuveen Investments
52



Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
    ASSET-BACKED SECURITIES (continued)  

$

250

   

ING Investment Management, Collateralized Loan Obligation, 2013-1A D, 144A

   

5.234

%

 

4/15/24

 

BB

 

$

230,439

   
  1,800    

LCM Limited Partnership, Collateralized Loan Obligation 2012A, 144A

   

5.984

%

 

10/19/22

 

BB

   

1,757,741

   
  4,000    

LCM Limited Partnership, Collateralized Loan Obligation, 2015A

   

5.227

%

 

2/25/17

 

BB–

   

3,681,204

   
  2,000    

LCM Limited Partnership, Collateralized Loan Obligation, Series 10AR, 144A

   

5.734

%

 

4/15/22

 

BB

   

1,970,370

   
  1,500    

LCM Limited Partnership, Collateralized Loan Obligation, Series 11A

   

5.384

%

 

4/19/22

 

BB

   

1,422,995

   
  1,500    

Madison Park Funding Limited, Collateralized Loan Obligations, Series 2012-8A, 144A

   

5.582

%

 

4/22/22

 

BB

   

1,462,754

   
  500    

North End CLO Limited, Loan Pool, 144A

   

4.833

%

 

7/17/25

 

BB

   

447,860

   
  2,000    

Oak Hill Credit Partners IV Limited, Collateralized Loan Obligation Series 2012-6A

   

5.724

%

 

5/15/23

 

BB

   

1,930,436

   
  2,240    

Oak Hill Credit Partners, Series 2012-7A

   

5.229

%

 

11/20/23

 

BB

   

2,094,344

   
  450    

Oak Hill Credit Partners, Series 2013-9A

   

5.234

%

 

10/20/25

 

BB–

   

417,887

   
  2,000    

Race Point Collateralized Loan Obligation Series 2012-7A, 144A

   

5.225

%

 

11/08/24

 

BB–

   

1,863,562

   
  1,000    

Race Point Collateralized Loan Obligation Limited 2011-5AR, 144A

   

6.231

%

 

12/15/22

 

BB

   

1,001,138

   
  2,000    

Race Point Collateralized Loan Obligations, Series 2012-6A, 144A

   

5.727

%

 

5/24/23

 

BB

   

1,930,584

   

$

27,290

   

Total Asset-Backed Securities (cost $24,880,805)

                           

25,902,538

   
     

Total Long-Term Investments (cost $733,036,847)

                           

743,001,368

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 6.7% (4.2% of Total Investments)

 

$

32,660

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 7/31/14,
repurchase price $32,660,097, collateralized by $31,145,000 U.S. Treasury Notes,
3.125%, due 5/15/19, value $33,314,685
  0.000
 
 

%

  8/01/14
 
 
   
 
 
 

$

32,660,097
 
 
 
      Total Short-Term Investments (cost $32,660,097)    

32,660,097

   
      Total Investments (cost $765,696,944) – 159.0%    

775,661,465

   
      Borrowings – (38.5)% (10), (11)    

(188,000,000

)

 
      Variable Rate Term Preferred Shares, at Liquidation Value – (20.1)% (12)    

(98,000,000

)

 
      Other Assets Less Liabilities – (0.4)% (13)    

(1,877,259

)

 
      Net Assets Applicable to Common Shares – 100%  

$

487,784,206

   

Investments in Derivatives as of July 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (13)
 

Morgan Stanley

 

$

29,317,500

   

Receive

 

1-Month USD-LIBOR-BBA

   

2.201

%

 

Monthly

 

4/20/16

 

$

(872,730

)

 

Nuveen Investments
53



JRO  Nuveen Floating Rate Income Opportunity Fund
Portfolio of Investments
(continued)  July 31, 2014

  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 applicable to common shares unless otherwise noted.

(2)  Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown.

(3)  Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. 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.

(4)  Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period.

(5)  At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund's Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund's custodian to cease accruing additional income on the Fund's records.

(6)  Investment, or portion of investment, represents an unfunded senior loan commitment outstanding. See Notes to Financial Statements, Note 8 – Senior Loan Commitments for more information.

(7)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(8)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(9)  Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Nuveen funds' Board of Directors/Trustees. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(10)  Borrowings as a percentage of Total Investments is 24.2%.

(11)  The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings.

(12)  Variable Rate Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 12.6%.

(13)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

DD1  Portion of investment purchased on a delayed delivery basis.

WI/DD  Purchased on a when-issued or delayed delivery basis.

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.

TBD  Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date.

USD-LIBOR-BBA  United States Dollar – London Inter-Bank Offered Rate British Bankers' Association.

See accompanying notes to financial statements.

Nuveen Investments
54




JSD

Nuveen Short Duration Credit Opportunities Fund

Portfolio of Investments  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

LONG-TERM INVESTMENTS – 135.0% (92.7% of Total Investments)

 
   

VARIABLE RATE SENIOR LOAN INTERESTS – 115.1% (79.1% of Total Investments) (4)

 
   

Aerospace & Defense – 0.6% (0.4% of Total Investments)

 

$

1,231

   

Sequa Corporation, Term Loan B

   

5.250

%

 

6/19/17

 

B

 

$

1,218,168

   
   

Airlines – 4.1% (2.8% of Total Investments)

 
  990    

American Airlines, Inc., Term Loan

   

3.750

%

 

6/27/19

 

Ba2

   

992,387

   
  3,152    

Delta Air Lines, Inc., Term Loan B1

   

3.250

%

 

10/18/18

 

Ba1

   

3,149,636

   
  985    

Delta Air Lines, Inc., Term Loan B2

   

2.403

%

 

4/18/16

 

Ba1

   

987,326

   
  1,940    

Delta Air Lines, Inc., Term Loan B

   

3.250

%

 

4/20/17

 

BB+

   

1,941,577

   
  990    

US Airways, Inc., Term Loan B1

   

3.500

%

 

5/23/19

 

Ba2

   

986,288

   
  8,057    

Total Airlines

                           

8,057,214

   
   

Auto Components – 0.1% (0.1% of Total Investments)

 
  170    

Schaeffler AG, Term Loan E

   

3.750

%

 

5/15/20

 

Ba2

   

170,401

   
   

Automobiles – 2.3% (1.6% of Total Investments)

 
  998    

Chrysler Group LLC, Tranche B, Term Loan

   

3.250

%

 

12/31/18

 

BB+

   

994,557

   
  2,784    

Formula One Group, Term Loan, First Lien, WI/DD

 

TBD

 

TBD

 

B

   

2,764,082

   
  750    

Formula One Group, Term Loan, Second Lien, WI/DD

 

TBD

 

TBD

 

CCC+

   

751,875

   
  4,532    

Total Automobiles

                           

4,510,514

   
   

Building Products – 0.6% (0.4% of Total Investments)

 
  1,200    

Gates Global LLC, Term Loan

   

4.250

%

 

7/03/21

 

B+

   

1,193,893

   
   

Capital Markets – 0.5% (0.3% of Total Investments)

 
  946    

RPI Finance Trust, Term Loan B3

   

3.250

%

 

11/09/18

 

Baa2

   

947,853

   
   

Chemicals – 1.1% (0.8% of Total Investments)

 
  1,175    

Ineos US Finance LLC, Cash Dollar, Term Loan

   

3.750

%

 

5/04/18

 

BB–

   

1,170,534

   
  1,000    

Mineral Technologies, Inc., Term Loan B, First Lien

   

4.000

%

 

5/07/21

 

BB

   

1,004,992

   
  2,175    

Total Chemicals

                           

2,175,526

   
   

Commercial Services & Supplies – 3.0% (2.0% of Total Investments)

 
  489    

HMH Holdings, Inc., Term Loan, First Lien

   

4.250

%

 

5/22/18

 

B1

   

491,194

   
  1,000    

International Lease Finance Corp., Term Loan

   

3.500

%

 

3/06/21

 

Ba1

   

999,821

   
  1,937    

iQor US, Inc., Term Loan, First Lien

   

6.000

%

 

4/01/21

 

B

   

1,863,889

   
  500    

iQor US, Inc., Term Loan, Second Lien

   

9.750

%

 

4/01/22

 

CCC+

   

476,250

   
  2,000    

Millennium Laboratories, Inc., Tranche B, Term Loan

   

5.250

%

 

4/16/21

 

B+

   

2,006,650

   
  5,926    

Total Commercial Services & Supplies

                           

5,837,804

   
   

Communications Equipment – 1.6% (1.1% of Total Investments)

 
  1,487    

Avaya, Inc., Term Loan B3

   

4.727

%

 

10/26/17

 

B1

   

1,441,834

   
  497    

Avaya, Inc., Term Loan B6

   

6.500

%

 

3/31/18

 

B1

   

494,907

   
  1,151    

Telesat Canada Inc., Term Loan B

   

3.500

%

 

3/28/19

 

BB–

   

1,149,132

   
  3,135    

Total Communications Equipment

                           

3,085,873

   
   

Computers & Peripherals – 2.5% (1.7% of Total Investments)

 
  4,963    

Dell, Inc., Term Loan B

   

4.500

%

 

4/29/20

 

BB+

   

4,976,708

   
   

Containers & Packaging – 0.6% (0.4% of Total Investments)

 
  1,129    

Reynolds Group Holdings, Inc., Incremental US Term Loan, First Lien

   

4.000

%

 

12/01/18

 

B+

   

1,128,157

   

Nuveen Investments
55



JSD  Nuveen Short Duration Credit Opportunities Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Diversified Consumer Services – 5.9% (4.1% of Total Investments)

 

$

2,015

   

Cengage Learning Acquisitions, Inc., Exit Term Loan

   

7.000

%

 

3/31/20

 

B+

 

$

2,032,547

   
  2,588    

Harland Clarke Holdings Corporation, Term Loan B3

   

7.000

%

 

5/22/18

 

B+

   

2,635,742

   
  2,842    

Hilton Hotels Corporation, Term Loan B2

   

3.500

%

 

10/25/20

 

BB+

   

2,832,485

   
  1,672    

Laureate Education, Inc., Term Loan B

   

5.000

%

 

6/15/18

 

B

   

1,626,354

   
  885    

New Albertson's, Inc., Term Loan

   

4.750

%

 

6/24/21

 

Ba3

   

888,370

   
  1,679    

ServiceMaster Company, Term Loan

   

4.250

%

 

7/01/21

 

B+

   

1,670,430

   
  11,681    

Total Diversified Consumer Services

                           

11,685,928

   
   

Diversified Financial Services – 1.1% (0.8% of Total Investments)

 
  1,481    

Ocwen Financial Corporation, Term Loan B

   

5.000

%

 

2/15/18

 

B+

   

1,487,545

   
  750    

RCS Capital, Term Loan

   

6.500

%

 

4/29/19

 

B+

   

763,594

   
  2,231    

Total Diversified Financial Services

                           

2,251,139

   
   

Diversified Telecommunication Services – 5.2% (3.6% of Total Investments)

 
  867    

Greeneden U.S. Holdings II LLC, Term Loan B

   

4.000

%

 

2/08/20

 

B

   

861,599

   
  1,672    

Presidio, Inc., Term Loan B

   

5.000

%

 

3/31/17

 

B+

   

1,681,478

   
  1,000    

SBA Communication, Incremental Term Loan, Tranche B1

   

3.250

%

 

3/24/21

 

BB

   

991,250

   
  1,000    

TelX Group, Inc., Initial Term Loan, First Lien

   

4.500

%

 

4/09/20

 

B1

   

1,000,000

   
  3,694    

WideOpenWest Finance LLC, Term Loan B

   

4.750

%

 

4/01/19

 

Ba3

   

3,711,463

   
  740    

Ziggo N.V., Term Loan B1, DD1

   

3.250

%

 

1/15/22

 

BB–

   

727,953

   
  477    

Ziggo N.V., Term Loan B2, DD1

   

3.250

%

 

1/15/22

 

BB–

   

469,107

   
  784    

Ziggo N.V., Term Loan B3, Delayed Draw, WI/DD

 

TBD

 

TBD

 

BB–

   

771,513

   
  10,234    

Total Diversified Telecommunication Services

                           

10,214,363

   
   

Electronic Equipment & Instruments – 0.6% (0.4% of Total Investments)

 
  1,153    

SMART Modular Technologies, Inc., Term Loan B

   

8.250

%

 

8/26/17

 

B

   

1,147,181

   
   

Energy Equipment & Services – 1.9% (1.3% of Total Investments)

 
  2,965    

Drill Rigs Holdings, Inc., Tranche B1, Term Loan

   

6.000

%

 

3/31/21

 

B+

   

2,994,625

   
  791    

Offshore Group Investment Limited, Term Loan B

   

5.000

%

 

10/25/17

 

B–

   

788,528

   
  3,756    

Total Energy Equipment & Services

                           

3,783,153

   
   

Food & Staples Retailing – 3.2% (2.2% of Total Investments)

 
  2,480    

Albertson's LLC, Term Loan B2

   

4.750

%

 

3/21/19

 

BB–

   

2,495,755

   
  498    

BJ's Wholesale Club, Inc., Replacement Loan, First Lien

   

4.500

%

 

9/26/19

 

B–

   

497,228

   
  250    

BJ's Wholesale Club, Inc., Replacement Loan, Second Lien

   

8.500

%

 

3/26/20

 

CCC

   

253,984

   
  995    

Del Monte Foods Company, Term Loan, First Lien

   

4.251

%

 

2/18/21

 

B+

   

988,936

   
  1,000    

Rite Aid Corporation, Tranche 2, Term Loan, Second Lien

   

4.875

%

 

6/21/21

 

B

   

1,011,563

   
  981    

Supervalu, Inc., New Term Loan

   

4.500

%

 

3/21/19

 

B+

   

980,714

   
  6,204    

Total Food & Staples Retailing

                           

6,228,180

   
   

Food Products – 5.1% (3.5% of Total Investments)

 
  2,277    

H.J Heinz Company, Term Loan B2

   

3.500

%

 

6/05/20

 

BB

   

2,279,846

   
  3,000    

Jacobs Douwe Egberts, Term Loan B, WI/DD

 

TBD

 

TBD

 

BB

   

2,962,500

   
  3,406    

US Foods, Inc., Incremental Term Loan

   

4.500

%

 

3/31/19

 

B2

   

3,407,728

   
  1,350    

Wilton Products, Inc., Tranche B, Term Loan

   

7.500

%

 

8/30/18

 

B–

   

1,296,065

   
  10,033    

Total Food Products

                           

9,946,139

   
   

Health Care Equipment & Supplies – 4.4% (3.0% of Total Investments)

 
  876    

Ardent Medical Services, Inc., Term Loan, First Lien

   

6.750

%

 

7/02/18

 

B+

   

880,229

   
  714    

Ardent Medical Services, Inc., Term Loan, Second Lien

   

11.000

%

 

1/02/19

 

CCC+

   

718,452

   
  1,803    

ConvaTec, Inc., Dollar Term Loan

   

4.000

%

 

12/22/16

 

Ba3

   

1,806,764

   
  1,036    

Kinetic Concepts, Inc., Term Loan D1

   

4.000

%

 

5/04/18

 

BB–

   

1,036,840

   
  3,225    

Onex Carestream Finance LP, Term Loan, First Lien

   

5.000

%

 

6/07/19

 

B+

   

3,234,053

   
  973    

Onex Carestream Finance LP, Term Loan, Second Lien

   

9.500

%

 

12/07/19

 

B–

   

991,894

   
  8,627    

Total Health Care Equipment & Supplies

                           

8,668,232

   

Nuveen Investments
56



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Health Care Providers & Services – 9.2% (6.3% of Total Investments)

 

$

1,600

   

Amsurg Corporation, Term Loan

   

3.750

%

 

7/08/21

 

Ba2

 

$

1,601,667

   
  313    

BioScrip, Inc., Delayed Draw, Term Loan

   

6.500

%

 

7/31/20

 

B1

   

317,559

   
  522    

BioScrip, Inc., Initial Term Loan B

   

6.500

%

 

7/31/20

 

B1

   

529,266

   
  1,626    

Community Health Systems, Inc., Term Loan D

   

4.250

%

 

1/27/21

 

BB

   

1,632,064

   
  50    

Community Health Systems, Inc., Term Loan E

   

3.478

%

 

1/25/17

 

BB

   

50,173

   
  998    

CRC Health Corporation, First Lien

   

5.250

%

 

3/29/21

 

B1

   

1,005,917

   
  2,492    

DaVita HealthCare Partners, Inc., Tranche B, Term Loan

   

3.500

%

 

6/24/21

 

Ba1

   

2,493,259

   
  2,750    

Drumm Investors LLC, Term Loan

   

6.750

%

 

5/04/18

 

B

   

2,757,845

   
  817    

Genesis Healthcare LLC, Term Loan

   

10.000

%

 

12/04/17

 

B

   

834,425

   
  985    

Heartland Dental Care, Inc., Term Loan, First Lien

   

5.500

%

 

12/21/18

 

B1

   

990,352

   
  500    

Heartland Dental Care, Inc., Term Loan, Second Lien

   

9.750

%

 

6/21/19

 

CCC+

   

512,188

   
  1,213    

IASIS Healthcare LLC, Term Loan B2, First Lien

   

4.500

%

 

5/03/18

 

Ba3

   

1,217,094

   
  868    

LHP Operations Co. LLC, Term Loan B

   

9.000

%

 

7/03/18

 

B–

   

831,516

   
  348    

Mallinckrodt International Finance SA, Initial Term Loan B

   

3.500

%

 

3/19/21

 

BB+

   

346,197

   
  542    

National Mentor Holdings, Inc., Term Loan B

   

4.750

%

 

1/31/21

 

B1

   

544,766

   
  1,990    

One Call Care Management, Inc., Term Loan B

   

5.000

%

 

11/27/20

 

B1

   

1,995,721

   
  459    

Skilled Healthcare Group, Inc., Term Loan

   

7.000

%

 

4/09/16

 

B

   

459,390

   
  18,073    

Total Health Care Providers & Services

                           

18,119,399

   
   

Health Care Technology – 0.4% (0.3% of Total Investments)

 
  800    

Catalent Pharma Solutions, Inc., Term Loan

   

4.500

%

 

5/20/21

 

BB–

   

804,313

   
   

Hotels, Restaurants & Leisure – 3.8% (2.6% of Total Investments)

 
  2,275    

CCM Merger, Inc., Term Loan

   

6.000

%

 

3/01/17

 

B+

   

2,277,660

   
  2,273    

CityCenter Holdings LLC, Term Loan

   

4.250

%

 

10/24/20

 

B

   

2,281,686

   
  908    

Landry's Restaraunts, Inc., Term Loan B

   

4.000

%

 

4/24/18

 

BB–

   

911,176

   
  1,913    

Station Casino LLC, Term Loan B

   

4.250

%

 

3/02/20

 

B1

   

1,915,026

   
  7,369    

Total Hotels, Restaurants & Leisure

                           

7,385,548

   
   

Household Products – 0.1% (0.1% of Total Investments)

 
  269    

Spectrum Brands, Inc., Term Loan C

   

3.500

%

 

9/04/19

 

BB

   

269,039

   
   

Industrial Conglomerates – 0.5% (0.3% of Total Investments)

 
  995    

Brand Energy & Infrastructure Services, Inc., Initial Term Loan

   

4.750

%

 

11/26/20

 

B1

   

996,954

   
   

Insurance – 1.3% (0.9% of Total Investments)

 
  613    

Hub International Holdings, Inc., Initial Term Loan

   

4.250

%

 

10/02/20

 

B1

   

612,018

   
  1,970    

USI Holdings Corporation, Initial Term Loan

   

4.250

%

 

12/27/19

 

B1

   

1,972,985

   
  2,583    

Total Insurance

                           

2,585,003

   
   

Internet Software & Services – 1.7% (1.2% of Total Investments)

 
  723    

Ancestry.com, Inc., Replacement Term Loan B1

   

4.500

%

 

12/28/18

 

Ba2

   

723,567

   
  116    

Sabre Inc., Term Loan C

   

4.000

%

 

2/18/18

 

Ba3

   

116,271

   
  2,463    

Sabre Inc., Term Loan

   

4.250

%

 

2/18/19

 

Ba3

   

2,459,166

   
  3,302    

Total Internet Software & Services

                           

3,299,004

   
   

IT Services – 4.2% (2.9% of Total Investments)

 
  3,697    

EIG Investors Corp., Term Loan

   

5.000

%

 

11/09/19

 

B

   

3,715,868

   
  1,313    

Vantiv, Inc., Term Loan B

   

3.750

%

 

6/13/21

 

BB+

   

1,319,062

   
  1,307    

VFH Parent LLC, New Term Loan

   

5.750

%

 

11/08/19

 

N/R

   

1,295,662

   
  1,954    

Zayo Group LLC, Term Loan B

   

4.000

%

 

7/02/19

 

B1

   

1,947,417

   
  8,271    

Total IT Services

                           

8,278,009

   
   

Leisure Equipment & Products – 2.9% (2.0% of Total Investments)

 
  2,000    

24 Hour Fitness Worldwide, Inc., Term Loan B

   

4.750

%

 

5/28/21

 

Ba3

   

2,009,362

   
  2,263    

Bombardier Recreational Products, Inc., Term Loan

   

4.000

%

 

1/30/19

 

B+

   

2,260,029

   
  1,481    

Equinox Holdings, Inc., New Initial Term Loan B

   

4.250

%

 

1/31/20

 

Ba3

   

1,486,805

   
  5,744    

Total Leisure Equipment & Products

                           

5,756,196

   

Nuveen Investments
57



JSD  Nuveen Short Duration Credit Opportunities Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Machinery – 0.9% (0.6% of Total Investments)

 

$

1,333

   

Doosan Infracore International, Inc., Term Loan

   

4.500

%

 

5/27/21

 

BB–

 

$

1,340,544

   
  498    

TNT Crane and Rigging Inc., Initial Term Loan, First Lien

   

5.500

%

 

11/27/20

 

B1

   

502,475

   
  1,831    

Total Machinery

                           

1,843,019

   
   

Media – 10.7% (7.3% of Total Investments)

 
  44    

Advantage Sales & Marketing, Inc., Delayed Draw, Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

43,883

   
  1,321    

Advantage Sales & Marketing, Inc., Term Loan, First Lien

   

4.250

%

 

7/11/21

 

B1

   

1,316,486

   
  750    

Advantage Sales & Marketing, Inc., Term Loan, Second Lien, DD1

   

7.500

%

 

7/11/22

 

CCC+

   

753,437

   
  500    

Affinion Group Holdings, Inc., Initial Term Loan, Second Lien

   

8.500

%

 

10/31/18

 

B3

   

493,750

   
  500    

Catalina Marketing Corporation, Term Loan, First Lien

   

4.500

%

 

4/09/21

 

B+

   

501,250

   
  500    

Catalina Marketing Corporation, Term Loan, Second Lien

   

7.750

%

 

4/11/22

 

CCC+

   

498,750

   
  662    

Clear Channel Communications, Inc., Tranche B, Term Loan

   

3.805

%

 

1/29/16

 

CCC+

   

657,164

   
  1,633    

Clear Channel Communications, Inc.,Term Loan E

   

7.655

%

 

7/30/19

 

CCC+

   

1,633,413

   
  2,954    

Cumulus Media, Inc., Term Loan B

   

4.250

%

 

12/23/20

 

B+

   

2,963,649

   
  1,363    

Emerald Expositions Holdings, Inc., Term Loan, First Lien

   

4.750

%

 

6/17/20

 

BB–

   

1,372,058

   
  500    

Gray Television, Inc., Initial Term Loan

   

3.750

%

 

6/13/21

 

BB

   

500,860

   
  750    

IMG Worldwide, Inc., First Lien

   

5.250

%

 

5/06/21

 

B1

   

746,563

   
  1,000    

Interactive Data Corporation, Term Loan B

   

4.750

%

 

5/02/21

 

B+

   

1,005,313

   
  1,268    

McGraw-Hill Education Holdings LLC, Refinancing Term Loan

   

5.750

%

 

3/22/19

 

B+

   

1,281,430

   
  995    

McGraw-Hill Education Holdings LLC, Term Loan B

   

6.250

%

 

12/18/19

 

B+

   

1,005,572

   
  928    

Media General, Inc., Delayed Draw, Term Loan

   

4.250

%

 

7/31/20

 

BB–

   

932,461

   
  536    

Numericable Group S.A., Term Loan B1

   

4.500

%

 

5/21/20

 

Ba3

   

538,374

   
  464    

Numericable Group S.A., Term Loan B2

   

4.500

%

 

5/21/20

 

Ba3

   

465,767

   
  970    

Radio One, Inc., Term Loan B, First Lien

   

7.500

%

 

3/31/16

 

B+

   

984,255

   
  993    

Springer Science & Business Media, Inc., Term Loan B3, WI/DD

 

TBD

 

TBD

 

N/R

   

1,329,007

   
  1,990    

Tribune Company, Term Loan B

   

4.000

%

 

12/27/20

 

BB+

   

1,990,985

   
  20,621    

Total Media

                           

21,014,427

   
   

Multiline Retail – 1.3% (0.9% of Total Investments)

 
  1,850    

Hudson's Bay Company, Term Loan B, First Lien

   

4.750

%

 

11/04/20

 

BB

   

1,867,344

   
  625    

J.C. Penney Corporation, Inc., Term Loan

   

5.000

%

 

6/20/19

 

B

   

628,669

   
  2,475    

Total Multiline Retail

                           

2,496,013

   
   

Oil, Gas & Consumable Fuels – 5.5% (3.8% of Total Investments)

 
  1,216    

Buffalo Gulf Coast Terminals, Term Loan B

   

5.250

%

 

10/31/17

 

BB+

   

1,220,403

   
  1,564    

Crestwood Holdings LLC, Term Loan B

   

7.000

%

 

6/19/19

 

B

   

1,597,745

   
  1,500    

Energy and Exploration Partners, Term Loan

   

7.750

%

 

1/15/19

 

N/R

   

1,479,375

   
  2,386    

Fieldwood Energy LLC, Term Loan, Second Lien

   

8.375

%

 

9/30/20

 

B2

   

2,448,866

   
  618    

Frac Tech International LLC, Term Loan B

   

5.750

%

 

4/16/21

 

B2

   

624,536

   
  485    

Harvey Gulf International Marine, Inc., Term Loan B

   

5.500

%

 

6/18/20

 

B1

   

483,603

   
  833    

Samson Investment Company, Tranche 1, Term Loan, Second Lien

   

5.000

%

 

9/25/18

 

B1

   

832,441

   
  1,488    

Seadrill Partners LLC, Initial Term Loan

   

4.000

%

 

2/21/21

 

BB–

   

1,473,982

   
  244    

Southcross Energy Partners L.P., Opco Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

245,421

   
  366    

Southcross Holdings Borrower L.P., Holdco Term Loan, WI/DD

 

TBD

 

TBD

 

B2

   

367,907

   
  10,700    

Total Oil, Gas & Consumable Fuels

                           

10,774,279

   
   

Pharmaceuticals – 8.5% (5.9% of Total Investments)

 
  1,876    

Auxilium Pharmaceuticals, Inc., Term Loan

   

6.250

%

 

4/26/17

 

Ba3

   

1,879,768

   
  792    

Generic Drug Holdings, Inc., Term Loan B

   

5.000

%

 

8/16/20

 

B1

   

796,208

   
  1,496    

Grifols, Inc., Term Loan

   

3.155

%

 

2/27/21

 

Ba1

   

1,491,458

   
  1,000    

Patheon, Inc., Term Loan B

   

4.250

%

 

3/11/21

 

B

   

993,750

   
  2,424    

Pharmaceutical Product Development, Inc., Term Loan B, First Lien

   

4.000

%

 

12/01/18

 

Ba3

   

2,428,736

   
  993    

Pharmaceutical Research Associates, Inc., Term Loan

   

4.500

%

 

9/23/20

 

B1

   

990,019

   
  1,939    

Quintiles Transnational Corp., Term Loan B3

   

3.750

%

 

6/08/18

 

BB

   

1,940,157

   
  975    

Salix Pharmaceuticals, LTD., Term Loan

   

4.250

%

 

1/02/20

 

Ba1

   

980,636

   
  966    

Therakos, Inc., Term Loan, First Lien

   

7.500

%

 

12/27/17

 

B

   

972,959

   
  2,381    

Valeant Pharmaceuticals International, Inc., Term Loan E

   

3.750

%

 

8/05/20

 

Ba1

   

2,378,769

   
  1,914    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan D2

   

3.750

%

 

2/13/19

 

Ba1

   

1,913,988

   
  16,756    

Total Pharmaceuticals

                           

16,766,448

   

Nuveen Investments
58



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Professional Services – 0.5% (0.3% of Total Investments)

 

$

967

   

Ceridian Corporation, New Replacement Term Loan

   

4.405

%

 

5/09/17

 

B1

 

$

969,113

   
   

Real Estate Investment Trust – 2.7% (1.8% of Total Investments)

 
  1,975    

Realogy Corporation, Initial Term Loan B

   

3.750

%

 

3/05/20

 

BB

   

1,978,162

   
  84    

Realogy Corporation, Synthetic Letter of Credit

   

4.444

%

 

10/10/16

 

BB

   

84,048

   
  992    

Starwood Property Trust, Inc., Term Loan B

   

3.500

%

 

4/17/20

 

BB+

   

988,895

   
  2,251    

Walter Investment Management Corporation, Tranche B, Term Loan, First Lien

   

4.750

%

 

12/18/20

 

B+

   

2,225,219

   
  5,302    

Total Real Estate Investment Trust

                           

5,276,324

   
   

Real Estate Management & Development – 1.6% (1.1% of Total Investments)

 
  1,500    

Capital Automotive LP, Term Loan, Second Lien

   

6.000

%

 

4/30/20

 

B1

   

1,538,126

   
  1,590    

Capital Automotive LP, Term Loan, Tranche B1

   

4.000

%

 

4/10/19

 

Ba2

   

1,597,174

   
  3,090    

Total Real Estate Management & Development

                           

3,135,300

   
   

Semiconductors & Equipment – 2.2% (1.6% of Total Investments)

 
  500    

Avago Technologies, Term Loan B

   

3.750

%

 

5/06/21

 

BBB–

   

499,608

   
  1,975    

Freescale Semiconductor, Inc., Term Loan, Tranche B4

   

4.250

%

 

2/28/20

 

B1

   

1,967,977

   
  993    

Freescale Semiconductor, Inc., Term Loan, Tranche B5

   

5.000

%

 

1/15/21

 

B1

   

995,292

   
  979    

NXP Semiconductor LLC, Term Loan D

   

3.250

%

 

1/11/20

 

BB+

   

972,558

   
  4,447    

Total Semiconductors & Equipment

                           

4,435,435

   
   

Software – 7.5% (5.2% of Total Investments)

 
  1,607    

Attachmate Corporation, Term Loan, First Lien

   

7.250

%

 

11/22/17

 

BB–

   

1,628,405

   
  896    

Blackboard, Inc., Term Loan B3

   

4.750

%

 

10/04/18

 

B+

   

900,996

   
  960    

BMC Software, Inc., Initial Term Loan

   

5.000

%

 

9/10/20

 

B1

   

955,327

   
  968    

Emdeon Business Services LLC, Term Loan B2

   

3.750

%

 

11/02/18

 

BB–

   

968,006

   
  957    

Epicor Software Corporation,Term Loan, B2

   

4.000

%

 

5/16/18

 

Ba3

   

958,656

   
  953    

Explorer Holdings, Inc., Term Loan

   

6.000

%

 

5/02/18

 

B+

   

956,528

   
  3,128    

Infor Global Solutions Intermediate Holdings, Ltd., Term Loan B5

   

3.750

%

 

6/03/20

 

Ba3

   

3,106,589

   
  2,701    

Misys PLC, Term Loan B, First Lien

   

5.000

%

 

12/12/18

 

B+

   

2,722,444

   
  872    

SunGard Data Systems, Inc., Term Loan E

   

4.000

%

 

3/08/20

 

BB

   

874,682

   
  708    

Vertafore, Inc., Term Loan, First Lien

   

4.250

%

 

10/03/19

 

B+

   

709,521

   
  1,000    

Vertafore, Inc., Term Loan, Second Lien

   

9.750

%

 

10/27/17

 

CCC+

   

1,019,063

   
  14,750    

Total Software

                           

14,800,217

   
   

Specialty Retail – 0.9% (0.6% of Total Investments)

 
  1,041    

Jo-Ann Stores, Inc., Term Loan, First Lien

   

4.000

%

 

3/16/18

 

B+

   

1,039,782

   
  750    

Michaels Stores, Inc., Term Loan B2

   

4.000

%

 

1/28/20

 

Ba3

   

747,656

   
  1,791    

Total Specialty Retail

                           

1,787,438

   
   

Textiles, Apparel & Luxury Goods – 0.8% (0.5% of Total Investments)

 
  134    

Polymer Group, Inc., Amendment No. 1, Delayed Draw, Incremental Loan, (5)

   

4.149

%

 

12/19/19

 

B–

   

134,571

   
  1,363    

Polymer Group, Inc., Initial Term Loan

   

5.250

%

 

12/19/19

 

B2

   

1,370,274

   
  1,497    

Total Textiles, Apparel & Luxury Goods

                           

1,504,845

   
   

Trading Companies & Distributors – 1.9% (1.3% of Total Investments)

 
  2,940    

HD Supply, Inc., Term Loan

   

4.000

%

 

6/28/18

 

B+

   

2,942,364

   
  750    

Neff Rental/Neff Finance Closing Date Loan, Second Lien

   

7.250

%

 

6/09/21

 

CCC+

   

747,656

   
  3,690    

Total Trading Companies & Distributors

                           

3,690,020

   
   

Transportation Infrastructure – 0.3% (0.2% of Total Investments)

 
  31    

Ceva Group PLC, Canadian Term Loan

   

6.500

%

 

3/19/21

 

B2

   

30,511

   
  181    

Ceva Group PLC, Dutch B.V., Term Loan

   

6.500

%

 

3/19/21

 

B2

   

176,965

   
  172    

Ceva Group PLC, Synthetic Letter of Credit Term Loan

   

0.134

%

 

3/19/21

 

B2

   

168,295

   
  249    

Ceva Group PLC, US Term Loan

   

6.500

%

 

3/19/21

 

B2

   

244,180

   
  633    

Total Transportation Infrastructure

                           

619,951

   

Nuveen Investments
59



JSD  Nuveen Short Duration Credit Opportunities Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Wireless Telecommunication Services – 1.3% (0.9% of Total Investments)

 

$

2,469

   

Fairpoint Communications, Inc., Term Loan B

   

7.500

%

 

2/11/19

 

B

 

$

2,547,953

   

$

225,808

   

Total Variable Rate Senior Loan Interests (cost $223,811,941)

                           

226,380,673

   
Shares  

Description (1)

             

Value

 
   

COMMON STOCKS – 0.7% (0.4% of Total Investments)

 
   

Diversified Consumer Services – 0.7% (0.4% of Total Investments)

 
  39,749    

Cengage Learning Holdings II LP, (6), (7)

                           

1,371,340

   
      Total Common Stocks (cost $1,286,905)    

1,371,340

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 19.2% (13.2% of Total Investments)

 
   

Commercial Services & Supplies – 0.9% (0.6% of Total Investments)

 

$

1,650

   

NES Rental Holdings Inc., 144A

   

7.875

%

 

5/01/18

 

CCC+

 

$

1,716,000

   
   

Communications Equipment – 0.1% (0.1% of Total Investments)

 
  250    

Avaya Inc., 144A

   

10.500

%

 

3/01/21

 

CCC+

   

218,750

   
   

Containers & Packaging – 0.4% (0.3% of Total Investments)

 
  700    

Reynolds Group

   

9.875

%

 

8/15/19

 

CCC+

   

754,250

   
   

Diversified Telecommunication Services – 1.1% (0.8% of Total Investments)

 
  750    

IntelSat Limited

   

7.750

%

 

6/01/21

 

B–

   

766,875

   
  800    

IntelSat Limited

   

8.125

%

 

6/01/23

 

B–

   

832,000

   
  500    

Level 3 Communications Inc.

   

11.875

%

 

2/01/19

 

B

   

548,750

   
  2,050    

Total Diversified Telecommunication Services

                           

2,147,625

   
   

Health Care Equipment & Supplies – 1.5% (1.0% of Total Investments)

 
  2,700    

Kinetic Concepts

   

10.500

%

 

11/01/18

 

B–

   

2,990,250

   
   

Health Care Providers & Services – 1.3% (0.9% of Total Investments)

 
  1,350    

IASIS Healthcare Capital Corporation

   

8.375

%

 

5/15/19

 

CCC+

   

1,427,625

   
  1,000    

Truven Health Analytics Inc.

   

10.625

%

 

6/01/20

 

CCC+

   

1,085,000

   
  2,350    

Total Health Care Providers & Services

                           

2,512,625

   
   

Media – 4.0% (2.8% of Total Investments)

 
  3,585    

Clear Channel Communications, Inc.

   

9.000

%

 

12/15/19

 

CCC+

   

3,679,106

   
  2,068    

Clear Channel Communications, Inc.

   

14.000

%

 

2/01/21

 

CCC–

   

2,063,177

   
  1,000    

Clear Channel Communications, Inc.

   

9.000

%

 

3/01/21

 

CCC+

   

1,033,750

   
  600    

Expo Event Transco Inc., 144A

   

9.000

%

 

6/15/21

 

B–

   

621,000

   
  500    

McGraw-Hill Global Education Holdings

   

9.750

%

 

4/01/21

 

BB

   

557,500

   
  7,753    

Total Media

                           

7,954,533

   
   

Oil, Gas & Consumable Fuels – 1.1% (0.8% of Total Investments)

 
  2,000    

Chaparral Energy Inc.

   

9.875

%

 

10/01/20

 

B–

   

2,200,000

   
   

Pharmaceuticals – 2.4% (1.6% of Total Investments)

 
  1,000    

Jaguar Holding Company I, 144A

   

9.375

%

 

10/15/17

 

CCC+

   

1,017,500

   
  2,000    

Valeant Pharmaceuticals International, 144A

   

7.000

%

 

10/01/20

 

B1

   

2,090,000

   
  500    

Valeant Pharmaceuticals International, 144A

   

7.250

%

 

7/15/22

 

B1

   

530,000

   
  1,000    

VPII Escrow Corporation, 144A

   

7.500

%

 

7/15/21

 

B1

   

1,080,000

   
  4,500    

Total Pharmaceuticals

                           

4,717,500

   

Nuveen Investments
60



Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Professional Services – 0.3% (0.2% of Total Investments)

 

$

500

   

Ceridian Corporation, 144A

   

8.125

%

 

11/15/17

 

CCC

 

$

498,750

   
   

Semiconductors & Equipment – 0.2% (0.1% of Total Investments)

 
 

250

   

Advanced Micro Devices, Inc.

   

7.750

%

 

8/01/20

 

B

   

257,500

   
 

166

   

Advanced Micro Devices, Inc.

   

7.500

%

 

8/15/22

 

B

   

171,810

   
 

416

   

Total Semiconductors & Equipment

                           

429,310

   
   

Software – 2.4% (1.6% of Total Investments)

 
 

580

   

BMC Software Finance Inc., 144A

   

8.125

%

 

7/15/21

 

CCC+

   

577,100

   
 

450

   

Boxer Parent Company Inc./BMC Software, 144A

   

9.000

%

 

10/15/19

 

CCC+

   

418,500

   
 

2,550

   

Infor Us Inc.

   

11.500

%

 

7/15/18

 

B–

   

2,849,625

   
 

750

   

Infor Us Inc.

   

9.375

%

 

4/01/19

 

B–

   

819,375

   
 

4,330

   

Total Software

                           

4,664,600

   
   

Specialty Retail – 0.3% (0.2% of Total Investments)

 
 

500

    99 Cents Only Stores    

11.000

%

 

12/15/19

 

CCC+

   

547,500

   
   

Trading Companies & Distributors – 0.6% (0.4% of Total Investments)

 
 

1,000

   

HD Supply Inc.

   

11.500

%

 

7/15/20

 

CCC+

   

1,165,000

   
   

Wireless Telecommunication Services – 2.6% (1.8% of Total Investments)

 
 

500

   

FairPoint Communications Inc., 144A

   

8.750

%

 

8/15/19

 

B

   

535,000

   
 

3,000

   

Sprint Corporation, 144A

   

7.875

%

 

9/15/23

 

BB–

   

3,210,000

   
 

1,250

   

T-Mobile USA Inc.

   

6.250

%

 

4/01/21

 

BB

   

1,306,250

   
 

75

   

T-Mobile USA Inc.

   

6.731

%

 

4/28/22

 

BB

   

78,563

   
 

75

   

T-Mobile USA Inc.

   

6.836

%

 

4/28/23

 

BB

   

79,500

   
 

4,900

   

Total Wireless Telecommunication Services

                           

5,209,313

   

$

35,599

   

Total Corporate Bonds (cost $35,235,253)

                           

37,726,006

   
        Total Long-Term Investments (cost $260,334,099)    

265,478,019

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 10.6% (7.3% of Total Investments)

 

$

20,821

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 7/31/14,
repurchase price $20,820,856, collateralized by $19,855,000 U.S. Treasury Notes,
3.125%, due 5/15/19, value $21,238,179
  0.000
 
 

%

  8/01/14
 
 
   
 
 
 

$

20,820,856
 
 
 
        Total Short-Term Investments (cost $20,820,856)    

20,820,856

   
        Total Investments (cost $281,154,955) – 145.6%    

286,298,875

   
        Borrowings – (43.2)% (8), (9)    

(85,000,000

)

 
        Other Assets Less Liabilities – (2.4)% (10)    

(4,685,422

)

 
        Net Assets Applicable to Common Shares – 100%  

$

196,613,453

   

Investments in Derivatives as of July 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (10)
 

Barclays PLC

 

$

17,500,000

   

Receive

 

1-Month USD-LIBOR-BBA

   

1.143

%

 

Monthly

 

9/15/16

 

$

(177,639

)

 

Morgan Stanley

   

17,500,000

   

Receive

 

1-Month USD-LIBOR-BBA

   

0.588

   

Monthly

 

9/15/14

   

(12,411

)

 

Morgan Stanley

   

17,500,000

   

Receive

 

1-Month USD-LIBOR-BBA

   

1.659

   

Monthly

 

9/15/18

   

(108,572

)

 
   

$

52,500,000

                       

$

(298,622

)

 

Nuveen Investments
61



JSD  Nuveen Short Duration Credit Opportunities Fund
Portfolio of Investments
(continued)  July 31, 2014

Credit Default Swaps outstanding:

Counterparty

 

Referenced Entity

  Buy/Sell
Protection (11)
  Current
Credit Spread (12)
  Notional
Amount
  Fixed Rate
(Annualized)
  Termination
Date
 

Value

  Unrealized
Appreciation
(Depreciation) (10)
 

Barclays PLC

 

Darden Restaurant's, Inc.

 

Buy

   

1.92

%

 

$

2,000,000

     

1.000

%

 

9/20/19

 

$

82,934

   

$

10,158

   

Deutsche Bank

 

Avon Products, Inc.

 

Buy

   

2.96

     

2,000,000

     

1.000

   

9/20/19

   

171,743

     

34,228

   

Morgan Stanley

 

Time Warner Cable, Inc.

 

Buy

   

0.54

     

1,050,000

     

1.000

   

9/20/19

   

(25,206

)

   

1,099

   
               

$

5,050,000

           

$

229,471

   

$

45,485

   

  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 applicable to common shares unless otherwise noted.

(2)  Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown.

(3)  Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. 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.

(4)  Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period.

(5)  Investment, or portion of investment, represents an unfunded senior loan commitment outstanding. See Notes to Financial Statements, Note 8 – Senior Loan Commitments for more information.

(6)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(7)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(8)  Borrowings as a percentage of Total Investments is 29.7%.

(9)  The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings.

(10)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

(11)  The Fund entered into the credit default swap to gain investment exposure to the referenced entity. Selling protection has a similar credit risk position to owning that referenced entity. Buying protection has a similar credit risk position to selling the referenced entity short.

(12)  The credit spread generally serves as an indication of the current status of the payment/performance risk and therefore the likelihood of default of the credit derivative. The credit spread also reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into a credit default swap contract. Higher credit spreads are indicative of a higher likelihood of performance by the seller of protection.

DD1  Portion of investment purchased on a delayed delivery basis.

WI/DD  Purchased on a when-issued or delayed delivery basis.

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.

TBD  Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date.

USD-LIBOR-BBA  United States Dollar – London Inter-Bank Offered Rate British Bankers' Association.

See accompanying notes to financial statements.

Nuveen Investments
62



JQC

Nuveen Credit Strategies Income Fund

Portfolio of Investments  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

LONG-TERM INVESTMENTS – 138.8% (94.7% of Total Investments)

 
   

VARIABLE RATE SENIOR LOAN INTERESTS – 107.5% (73.3% of Total Investments) (4)

 
   

Aerospace & Defense – 0.1% (0.1% of Total Investments)

 

$

1,456

   

Hamilton Sundstrand, Term Loan, First Lien

   

4.000

%

 

12/13/19

 

B+

 

$

1,452,438

   
   

Airlines – 3.7% (2.5% of Total Investments)

 
  7,425    

American Airlines, Inc., Term Loan

   

3.750

%

 

6/27/19

 

Ba2

   

7,442,902

   
  16,745    

Delta Air Lines, Inc., Term Loan B1

   

3.250

%

 

10/18/18

 

Ba1

   

16,732,441

   
  27,252    

Delta Air Lines, Inc., Term Loan B

   

3.250

%

 

4/20/17

 

BB+

   

27,274,262

   
  51,422    

Total Airlines

                           

51,449,605

   
   

Auto Components – 0.9% (0.6% of Total Investments)

 
  12,841    

Schaeffler AG, Term Loan E

   

3.750

%

 

5/15/20

 

Ba2

   

12,871,318

   
   

Automobiles – 2.5% (1.7% of Total Investments)

 
  25,632    

Chrysler Group LLC, Term Loan B

   

3.500

%

 

5/24/17

 

BB+

   

25,671,578

   
  7,795    

Formula One Group, Term Loan, First Lien, WI/DD

 

TBD

 

TBD

 

B

   

7,739,429

   
  2,000    

Formula One Group, Term Loan, Second Lien, WI/DD

 

TBD

 

TBD

 

CCC+

   

2,005,000

   
  35,427    

Total Automobiles

                           

35,416,007

   
   

Capital Markets – 0.6% (0.4% of Total Investments)

 
  9,007    

RPI Finance Trust, Term Loan B3

   

3.250

%

 

11/09/18

 

Baa2

   

9,028,784

   
   

Chemicals – 3.7% (2.5% of Total Investments)

 
  13,560    

Ineos US Finance LLC, Cash Dollar, Term Loan

   

3.750

%

 

5/04/18

 

BB–

   

13,512,726

   
  30,151    

Univar, Inc., Term Loan

   

5.000

%

 

6/30/17

 

B+

   

30,226,332

   
  7,908    

US Coatings Acquisition, Term Loan B

   

4.000

%

 

2/01/20

 

B+

   

7,877,941

   
  51,619    

Total Chemicals

                           

51,616,999

   
   

Commercial Services & Supplies – 3.4% (2.3% of Total Investments)

 
  9,850    

ADS Waste Holdings, Inc., Initial Term Loan, Tranche B2

   

3.750

%

 

10/09/19

 

B+

   

9,813,939

   
  888    

CCS Income Trust, Term Loan, First Lien

   

6.250

%

 

5/12/18

 

B–

   

892,048

   
  36,000    

Millennium Laboratories, Inc., Tranche B, Term Loan

   

5.250

%

 

4/16/21

 

B+

   

36,119,700

   
  46,738    

Total Commercial Services & Supplies

                           

46,825,687

   
   

Communications Equipment – 1.1% (0.7% of Total Investments)

 
  14,971    

Telesat Canada Inc., Term Loan B

   

3.500

%

 

3/28/19

 

BB–

   

14,941,346

   
   

Computers & Peripherals – 1.9% (1.3% of Total Investments)

 
  25,805    

Dell, Inc., Term Loan B

   

4.500

%

 

4/29/20

 

BB+

   

25,878,880

   
   

Consumer Finance – 0.2% (0.2% of Total Investments)

 
  3,500    

First Data Corporation, Term Loan

   

3.666

%

 

3/23/18

 

BB–

   

3,468,647

   
   

Containers & Packaging – 1.6% (1.1% of Total Investments)

 
  22,486    

Reynolds Group Holdings, Inc., Incremental US Term Loan, First Lien

   

4.000

%

 

12/01/18

 

B+

   

22,470,789

   
   

Diversified Consumer Services – 5.0% (3.4% of Total Investments)

 
  10,322    

Cengage Learning Acquisitions, Inc., Exit Term Loan

   

7.000

%

 

3/31/20

 

B+

   

10,409,498

   
  33,076    

Hilton Hotels Corporation, Term Loan B2

   

3.500

%

 

10/25/20

 

BB+

   

32,964,262

   
  11,621    

Laureate Education, Inc., Term Loan B

   

5.000

%

 

6/15/18

 

B

   

11,301,385

   
  15,875    

ServiceMaster Company, Term Loan

   

4.250

%

 

7/01/21

 

B+

   

15,798,006

   
  70,894    

Total Diversified Consumer Services

                           

70,473,151

   

Nuveen Investments
63



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Diversified Financial Services – 0.3% (0.2% of Total Investments)

 

$

3,950

   

Ocwen Financial Corporation, Term Loan B

   

5.000

%

 

2/15/18

 

B+

 

$

3,966,788

   
   

Diversified Telecommunication Services – 5.4% (3.7% of Total Investments)

 
  20,440    

Intelsat Jackson Holdings, S.A., Tranche B2, Term Loan

   

3.750

%

 

6/30/19

 

BB–

   

20,439,992

   
  20,738    

WideOpenWest Finance LLC, Term Loan B

   

4.750

%

 

4/01/19

 

Ba3

   

20,833,079

   
  12,943    

Ziggo N.V., Term Loan B1, WI/DD

 

TBD

 

TBD

 

BB–

   

12,739,174

   
  8,340    

Ziggo N.V., Term Loan B2, WI/DD

 

TBD

 

TBD

 

BB–

   

8,209,364

   
  13,717    

Ziggo N.V., Term Loan B3, Delayed Draw, WI/DD

 

TBD

 

TBD

 

BB–

   

13,501,472

   
  76,178    

Total Diversified Telecommunication Services

                           

75,723,081

   
   

Energy Equipment & Services – 1.8% (1.3% of Total Investments)

 
  9,900    

Drill Rigs Holdings, Inc., Tranche B1, Term Loan

   

6.000

%

 

3/31/21

 

B+

   

9,999,000

   
  3,995    

Offshore Group Investment Limited, Term Loan B

   

5.000

%

 

10/25/17

 

B–

   

3,982,566

   
  11,850    

Vantage Drilling Company, Term Loan B

   

5.750

%

 

3/28/19

 

B–

   

11,817,910

   
  25,745    

Total Energy Equipment & Services

                           

25,799,476

   
   

Food & Staples Retailing – 2.6% (1.7% of Total Investments)

 
  13,365    

Albertson's LLC, Term Loan B2

   

4.750

%

 

3/21/19

 

BB–

   

13,450,002

   
  12,935    

BJ's Wholesale Club, Inc., Replacement Loan, First Lien

   

4.500

%

 

9/26/19

 

B–

   

12,927,925

   
  7,500    

BJ's Wholesale Club, Inc., Replacement Loan, Second Lien

   

8.500

%

 

3/26/20

 

CCC

   

7,619,535

   
  1,961    

Supervalu, Inc., New Term Loan

   

4.500

%

 

3/21/19

 

B+

   

1,961,427

   
  35,761    

Total Food & Staples Retailing

                           

35,958,889

   
   

Food Products – 4.9% (3.4% of Total Investments)

 
  32,967    

H.J Heinz Company, Term Loan B2

   

3.500

%

 

6/05/20

 

BB

   

33,008,209

   
  12,000    

Jacobs Douwe Egberts, Term Loan B, WI/DD

 

TBD

 

TBD

 

BB

   

11,850,000

   
  1,369    

NPC International, Inc., Term Loan B

   

4.000

%

 

12/28/18

 

B1

   

1,368,215

   
  22,731    

US Foods, Inc., Incremental Term Loan

   

4.500

%

 

3/31/19

 

B2

   

22,745,184

   
  69,067    

Total Food Products

                           

68,971,608

   
   

Health Care Equipment & Supplies – 5.1% (3.5% of Total Investments)

 
  15,749    

Kinetic Concepts, Inc., Term Loan D1

   

4.000

%

 

5/04/18

 

BB–

   

15,766,220

   
  10,333    

Onex Carestream Finance LP, Term Loan, First Lien

   

5.000

%

 

6/07/19

 

B+

   

10,361,356

   
  11,672    

Onex Carestream Finance LP, Term Loan, Second Lien

   

9.500

%

 

12/07/19

 

B–

   

11,902,723

   
  32,507    

United Surgical Partners International, Inc., Incremental Term Loan

   

4.750

%

 

4/03/19

 

B1

   

32,608,436

   
  70,261    

Total Health Care Equipment & Supplies

                           

70,638,735

   
   

Health Care Providers & Services – 5.7% (3.9% of Total Investments)

 
  36,707    

Community Health Systems, Inc., Term Loan D

   

4.250

%

 

1/27/21

 

BB

   

36,844,309

   
  442    

Community Health Systems, Inc., Term Loan E

   

3.478

%

 

1/25/17

 

BB

   

442,720

   
  11,638    

DaVita HealthCare Partners, Inc., Tranche B, Term Loan

   

3.500

%

 

6/24/21

 

Ba1

   

11,635,209

   
  22,018    

Drumm Investors LLC, Term Loan

   

6.750

%

 

5/04/18

 

B

   

22,065,976

   
  368    

HCA, Inc., Tranche B5, Term Loan

   

2.905

%

 

3/31/17

 

BB

   

369,016

   
  7,592    

National Mentor Holdings, Inc., Term Loan B

   

4.750

%

 

1/31/21

 

B1

   

7,626,614

   
  78,765    

Total Health Care Providers & Services

                           

78,983,844

   
   

Health Care Technology – 0.9% (0.6% of Total Investments)

 
  12,200    

Catalent Pharma Solutions, Inc., Term Loan

   

4.500

%

 

5/20/21

 

BB–

   

12,265,770

   
   

Hotels, Restaurants & Leisure – 2.9% (2.0% of Total Investments)

 
  1,882    

CCM Merger, Inc., Term Loan

   

6.000

%

 

3/01/17

 

B+

   

1,883,961

   
  9,559    

Landry's Restaraunts, Inc., Term Loan B

   

4.000

%

 

4/24/18

 

BB–

   

9,592,234

   
  3,433    

MGM Resorts International, Term Loan B

   

3.500

%

 

12/20/19

 

BB

   

3,416,919

   
  8,955    

Scientific Games Corporation, Term Loan B

   

4.250

%

 

10/18/20

 

BB–

   

8,840,663

   
  17,214    

Station Casino LLC, Term Loan B

   

4.250

%

 

3/02/20

 

B1

   

17,235,230

   
  41,043    

Total Hotels, Restaurants & Leisure

                           

40,969,007

   

Nuveen Investments
64



Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Household Durables – 0.9% (0.6% of Total Investments)

 

$

13,090

   

Serta Simmons Holdings LLC, Term Loan

   

4.250

%

 

10/01/19

 

B+

 

$

13,112,470

   
   

Insurance – 1.3% (0.9% of Total Investments)

 
  10,918    

Hub International Holdings, Inc., Initial Term Loan

   

4.250

%

 

10/02/20

 

B1

   

10,903,019

   
  7,880    

USI Holdings Corporation, Initial Term Loan

   

4.250

%

 

12/27/19

 

B1

   

7,891,940

   
  18,798    

Total Insurance

                           

18,794,959

   
   

Internet Software & Services – 2.6% (1.8% of Total Investments)

 
  37,048    

Sabre Inc., Term Loan

   

4.250

%

 

2/18/19

 

Ba3

   

36,998,103

   
   

IT Services – 0.4% (0.3% of Total Investments)

 
  5,806    

Zayo Group LLC, Term Loan B

   

4.000

%

 

7/02/19

 

B1

   

5,786,610

   
   

Leisure Equipment & Products – 0.5% (0.4% of Total Investments)

 
  7,543    

Bombardier Recreational Products, Inc., Term Loan

   

4.000

%

 

1/30/19

 

B+

   

7,533,429

   
   

Machinery – 0.7% (0.4% of Total Investments)

 
  3,333    

Doosan Infracore International, Inc., Term Loan

   

4.500

%

 

5/27/21

 

BB–

   

3,351,360

   
  5,955    

Rexnord LLC, Term Loan B

   

4.000

%

 

8/21/20

 

BB–

   

5,950,867

   
  9,288    

Total Machinery

                           

9,302,227

   
   

Media – 11.0% (7.5% of Total Investments)

 
  7,548    

Acquisitions Cogeco Cable II L.P., Term Loan B

   

3.250

%

 

11/30/19

 

BB

   

7,521,696

   
  118    

Advantage Sales & Marketing, Inc., Delayed Draw, Term Loan, WI/DD

 

TBD

 

TBD

 

B1

   

117,342

   
  3,532    

Advantage Sales & Marketing, Inc., Term Loan, First Lien

   

4.250

%

 

7/11/21

 

B1

   

3,520,273

   
  2,950    

Advantage Sales & Marketing, Inc., Term Loan, Second Lien, DD1

   

7.500

%

 

7/11/22

 

CCC+

   

2,963,520

   
  564    

Charter Communications Operating Holdings LLC, Term Loan F

   

3.000

%

 

1/03/21

 

Baa3

   

552,829

   
  1,505    

Clear Channel Communications, Inc., Tranche B, Term Loan

   

3.805

%

 

1/29/16

 

CCC+

   

1,493,733

   
  3,535    

Clear Channel Communications, Inc., Tranche D, Term Loan

   

6.905

%

 

1/30/19

 

CCC+

   

3,479,773

   
  1,358    

Clear Channel Communications, Inc. Term Loan E

   

7.655

%

 

7/30/19

 

CCC+

   

1,358,514

   
  35,447    

Cumulus Media, Inc., Term Loan B

   

4.250

%

 

12/23/20

 

B+

   

35,563,782

   
  32,777    

EMI Music Publishing LLC, Term Loan B

   

3.750

%

 

6/29/18

 

BB–

   

32,715,920

   
  17,250    

Interactive Data Corporation, Term Loan B

   

4.750

%

 

5/02/21

 

B+

   

17,341,649

   
  5,955    

Springer Science & Business Media, Inc., Term Loan B3, WI/DD

 

TBD

 

TBD

 

N/R

   

7,974,043

   
  34,683    

Tribune Company, Term Loan B

   

4.000

%

 

12/27/20

 

BB+

   

34,700,381

   
  4,324    

Univision Communications, Inc., Replacement Term Loan, First Lien

   

4.000

%

 

3/01/20

 

B+

   

4,302,177

   
  151,546    

Total Media

                           

153,605,632

   
   

Multiline Retail – 1.2% (0.8% of Total Investments)

 
  16,650    

Hudson's Bay Company, Term Loan B, First Lien

   

4.750

%

 

11/04/20

 

BB

   

16,806,094

   
   

Oil, Gas & Consumable Fuels – 1.8% (1.2% of Total Investments)

 
  4,406    

Crestwood Holdings LLC, Term Loan B

   

7.000

%

 

6/19/19

 

B

   

4,501,041

   
  4,822    

Fieldwood Energy LLC, Term Loan, First Lien

   

3.875

%

 

9/28/18

 

Ba2

   

4,833,730

   
  11,935    

Fieldwood Energy LLC, Term Loan, Second Lien

   

8.375

%

 

9/30/20

 

B2

   

12,244,331

   
  2,917    

Samson Investment Company, Tranche 1, Term Loan, Second Lien

   

5.000

%

 

9/25/18

 

B1

   

2,913,543

   
  24,080    

Total Oil, Gas & Consumable Fuels

                           

24,492,645

   
   

Pharmaceuticals – 7.5% (5.1% of Total Investments)

 
  34,622    

Pharmaceutical Product Development, Inc., Term Loan B, First Lien

   

4.000

%

 

12/01/18

 

Ba3

   

34,696,314

   
  27,810    

Quintiles Transnational Corp., Term Loan B3

   

3.750

%

 

6/08/18

 

BB

   

27,827,834

   
  16,088    

Salix Pharmaceuticals, LTD., Term Loan

   

4.250

%

 

1/02/20

 

Ba1

   

16,180,502

   
  15,512    

Valeant Pharmaceuticals International, Inc., Term Loan E

   

3.750

%

 

8/05/20

 

Ba1

   

15,499,980

   
  8,528    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan C2

   

3.750

%

 

12/11/19

 

Ba1

   

8,530,066

   
  1,279    

Valeant Pharmaceuticals International, Inc., Tranche B, Term Loan D2

   

3.750

%

 

2/13/19

 

Ba1

   

1,279,190

   
  103,839    

Total Pharmaceuticals

                           

104,013,886

   

Nuveen Investments
65



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon (4)

 

Maturity (2)

 

Ratings (3)

 

Value

 
   

Professional Services – 0.7% (0.5% of Total Investments)

 

$

9,665

   

Ceridian Corporation, New Replacement Term Loan

   

4.405

%

 

5/09/17

 

B1

 

$

9,691,127

   
   

Real Estate Investment Trust – 3.7% (2.5% of Total Investments)

 
  29,088    

iStar Financial, Inc., Term Loan, Tranche A2, First Lien

   

7.000

%

 

3/19/17

 

BB–

   

30,105,884

   
  17,312    

Realogy Corporation, Initial Term Loan B

   

3.750

%

 

3/05/20

 

BB

   

17,338,815

   
  4,362    

Walter Investment Management Corporation, Tranche B, Term Loan, First Lien

   

4.750

%

 

12/18/20

 

B+

   

4,311,114

   
  50,762    

Total Real Estate Investment Trust

                           

51,755,813

   
   

Real Estate Management & Development – 1.6% (1.1% of Total Investments)

 
  21,792    

Capital Automotive LP, Term Loan, Tranche B1

   

4.000

%

 

4/10/19

 

Ba2

   

21,885,453

   
   

Semiconductors & Equipment – 4.6% (3.1% of Total Investments)

 
  38,000    

Avago Technologies, Term Loan B

   

3.750

%

 

5/06/21

 

BBB–

   

37,970,208

   
  25,713    

Freescale Semiconductor, Inc., Term Loan, Tranche B4

   

4.250

%

 

2/28/20

 

B1

   

25,620,874

   
  63,713    

Total Semiconductors & Equipment

                           

63,591,082

   
   

Software – 12.2% (8.3% of Total Investments)

 
  3,814    

Activision Blizzard, Inc., Term Loan B

   

3.250

%

 

10/12/20

 

BBB

   

3,813,750

   
  5,826    

Blackboard, Inc., Term Loan B3

   

4.750

%

 

10/04/18

 

B+

   

5,856,477

   
  38,411    

BMC Software, Inc., Initial Term Loan

   

5.000

%

 

9/10/20

 

B1

   

38,213,063

   
  29,735    

Datatel Parent Corp, Term Loan B1

   

4.000

%

 

7/19/18

 

B+

   

29,710,701

   
  17,093    

Emdeon Business Services LLC, Term Loan B2

   

3.750

%

 

11/02/18

 

BB–

   

17,099,760

   
  25,320    

Infor Global Solutions Intermediate Holdings, Ltd., Term Loan B5

   

3.750

%

 

6/03/20

 

Ba3

   

25,146,008

   
  18,169    

Kronos Incorporated, Initial Term Loan, Second Lien

   

9.750

%

 

4/30/20

 

CCC

   

18,839,326

   
  15,000    

Misys PLC, Term Loan, Second Lien

   

12.000

%

 

6/12/19

 

CCC+

   

17,118,750

   
  4,794    

SunGard Data Systems, Inc., Term Loan E

   

4.000

%

 

3/08/20

 

BB

   

4,810,749

   
  10,000    

Vertafore, Inc., Term Loan, Second Lien

   

9.750

%

 

10/27/17

 

CCC+

   

10,190,630

   
  168,162    

Total Software

                           

170,799,214

   
   

Specialty Retail – 1.0% (0.7% of Total Investments)

 
  8,000    

Burlington Coat Factory Warehouse Corporation, Term Loan B3, WI/DD

 

TBD

 

TBD

 

B1

   

8,000,000

   
  844    

Gardner Denver, Inc., Term Loan

   

4.250

%

 

7/30/20

 

B1

   

840,791

   
  1,737    

Jo-Ann Stores, Inc., Term Loan, First Lien

   

4.000

%

 

3/16/18

 

B+

   

1,734,501

   
  2,884    

Michaels Stores, Inc. Term Loan, First Lien

   

3.750

%

 

1/28/20

 

Ba3

   

2,878,240

   
  13,465    

Total Specialty Retail

                           

13,453,532

   
   

Trading Companies & Distributors – 1.5% (1.0% of Total Investments)

 
  20,580    

HD Supply, Inc., Term Loan

   

4.000

%

 

6/28/18

 

B+

   

20,596,545

   

$

1,494,963

   

Total Variable Rate Senior Loan Interests (cost $1,490,525,391)

                           

1,501,389,670

   
Shares  

Description (1)

             

Value

 
   

COMMON STOCKS – 7.1% (4.9% of Total Investments)

 
   

Aerospace & Defense – 0.1% (0.1% of Total Investments)

 
  4,159    

BE Aerospace Inc., (5)

                         

$

354,097

   
  6,459    

Boeing Company

                           

778,180

   
  6,370    

GenCorp Inc., (5)

                           

113,068

   
  5,892    

Honeywell International Inc.

                           

541,062

   
    Total Aerospace & Defense    

1,786,407

   
   

Air Freight & Logistics – 0.1% (0.0% of Total Investments)

 
  6,986    

United Parcel Service, Inc., Class B

                           

678,271

   
   

Airlines – 0.0% (0.0% of Total Investments)

 
  8,660    

Southwest Airlines Co.

                           

244,905

   

Nuveen Investments
66



Shares  

Description (1)

             

Value

 
   

Auto Components – 0.1% (0.1% of Total Investments)

 
  11,255    

Delphi Automotive PLC

                         

$

751,834

   
  8,683    

Gentex Corporation

                           

250,939

   
    Total Auto Components    

1,002,773

   
   

Automobiles – 0.0% (0.0% of Total Investments)

 
  3,360    

Winnebago Industries Inc., (5)

                           

78,960

   
   

Banks – 0.0% (0.0% of Total Investments)

 
  1,740    

Banner Corporation

                           

70,018

   
  4,090    

Pacwest Bancorp.

                           

170,430

   
  3,000    

Trico Bancshares

                           

67,110

   
  1,650    

Wintrust Financial Corporation

                           

76,445

   
    Total Banks    

384,003

   
   

Beverages – 0.2% (0.1% of Total Investments)

 
  12,012    

Coca-Cola Company

                           

471,951

   
  7,859    

Coca-Cola Enterprises Inc.

                           

357,192

   
  4,932    

Constellation Brands, Inc., Class A, (5)

                           

410,638

   
  12,457    

PepsiCo, Inc.

                           

1,097,462

   
    Total Beverages    

2,337,243

   
   

Biotechnology – 0.3% (0.2% of Total Investments)

 
  1,907    

Alexion Pharmaceuticals Inc., (5)

                           

303,194

   
  7,296    

Amgen Inc.

                           

929,437

   
  2,494    

Biogen Idec Inc., (5)

                           

833,969

   
  6,438    

Celgene Corporation, (5)

                           

561,072

   
  4,920    

Emergent BioSolutions, Inc., (5)

                           

108,240

   
  11,773    

Gilead Sciences, Inc., (5)

                           

1,077,816

   
  1,380    

ISIS Pharmaceuticals, Inc., (5)

                           

42,766

   
  2,248    

Vertex Pharmaceuticals Inc., (5)

                           

199,870

   
    Total Biotechnology    

4,056,364

   
   

Building Products – 0.0% (0.0% of Total Investments)

 
  6,510    

Allegion PLC

                           

334,809

   
  2,460    

Trex Company Inc., (5)

                           

69,249

   
    Total Building Products    

404,058

   
   

Capital Markets – 0.2% (0.1% of Total Investments)

 
  3,370    

Affiliated Managers Group Inc., (5)

                           

671,473

   
  8,590    

American Capital Limited, (5)

                           

130,224

   
  4,404    

Ameriprise Financial, Inc.

                           

526,718

   
  16,121    

Charles Schwab Corporation

                           

447,358

   
  4,370    

Manning & Napier Inc.

                           

74,946

   
  4,700    

RCS Capital Corporation

                           

96,914

   
  500    

Virtus Investment Partners Inc.

                           

102,525

   
    Total Capital Markets    

2,050,158

   
   

Chemicals – 0.2% (0.2% of Total Investments)

 
  8,876    

LyondellBasell Industries NV

                           

943,075

   
  8,289    

Methanex Corporation

                           

539,365

   
  1,340    

Minerals Technologies Inc.

                           

77,814

   
  1,592    

Monsanto Company

                           

180,039

   
  2,825    

PPG Industries, Inc.

                           

560,367

   
  9,290    

Westlake Chemical Corporation

                           

811,853

   
    Total Chemicals    

3,112,513

   

Nuveen Investments
67



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Shares  

Description (1)

             

Value

 
   

Commercial Services & Supplies – 0.0% (0.0% of Total Investments)

 
  6,444    

CECO Environmental Corporation

                         

$

87,510

   
  2,110    

G&K Services, Inc.

                           

101,470

   
    Total Commercial Services & Supplies    

188,980

   
   

Communications Equipment – 0.1% (0.1% of Total Investments)

 
  9,210    

Ciena Corporation, (5)

                           

179,871

   
  6,340    

CommScope Holding Company Inc., (5)

                           

156,218

   
  3,858    

F5 Networks, Inc., (5)

                           

434,372

   
  18,272    

Finisar Corporation, (5)

                           

360,507

   
  11,099    

QUALCOMM, Inc.

                           

817,996

   
    Total Communications Equipment    

1,948,964

   
   

Computers & Peripherals – 0.3% (0.2% of Total Investments)

 
  48,891    

Apple, Inc.

                           

4,672,513

   
   

Construction & Engineering – 0.0% (0.0% of Total Investments)

 
  8,670    

Quanta Services Incorporated, (5)

                           

290,358

   
   

Consumer Finance – 0.0% (0.0% of Total Investments)

 
  6,310    

Capital One Financial Corporation

                           

501,897

   
   

Containers & Packaging – 0.1% (0.0% of Total Investments)

 
  2,950    

Myers Industries, Inc.

                           

54,516

   
  9,742    

Owens-Illinois, Inc., (5)

                           

303,853

   
  4,588    

Packaging Corp. of America

                           

303,542

   
    Total Containers & Packaging    

661,911

   
   

Diversified Consumer Services – 1.0% (0.7% of Total Investments)

 
  1,120    

Ascent Media Corporation, (5)

                           

69,418

   
  403,323    

Cengage Learning Holdings II LP, (5), (7)

                           

13,914,642

   
    Total Diversified Consumer Services    

13,984,060

   
   

Diversified Financial Services – 0.1% (0.1% of Total Investments)

 
  1,878    

Intercontinental Exchange Group, Inc.

                           

360,989

   
  6,557    

Moody's Corporation

                           

570,459

   
    Total Diversified Financial Services    

931,448

   
   

Diversified Telecommunication Services – 0.2% (0.1% of Total Investments)

 
  2,630    

Consolidated Communications Holdings, Inc.

                           

58,859

   
  38,108    

Verizon Communications Inc.

                           

1,921,405

   
    Total Diversified Telecommunication Services    

1,980,264

   
   

Electric Utilities – 0.1% (0.0% of Total Investments)

 
  2,620    

El Paso Electric Company

                           

96,547

   
  20,870    

Portland General Electric Company

                           

666,379

   
    Total Electric Utilities    

762,926

   
   

Electrical Equipment – 0.1% (0.1% of Total Investments)

 
  8,690    

Ametek Inc.

                           

423,116

   
  2,810    

Generac Holdings Inc., (5)

                           

121,954

   
  4,816    

Rockwell Automation, Inc.

                           

537,755

   
  3,590    

Thermon Group Holdings Inc., (5)

                           

87,524

   
    Total Electrical Equipment    

1,170,349

   

Nuveen Investments
68



Shares  

Description (1)

             

Value

 
   

Electronic Equipment & Instruments – 0.0% (0.0% of Total Investments)

 
  3,750    

Newport Corporation, (5)

                         

$

64,913

   
  1,620    

SYNNEX Corporation, (5)

                           

104,490

   
  2,814    

Vishay Precision Group Inc., (5)

                           

40,606

   
    Total Electronic Equipment & Instruments    

210,009

   
   

Energy Equipment & Services – 0.2% (0.1% of Total Investments)

 
  2,880    

ERA Group Incorporated, (5)

                           

77,184

   
  8,460    

Halliburton Company

                           

583,655

   
  1,720    

Matrix Service Company, (5)

                           

46,182

   
  3,552    

Oceaneering International Inc.

                           

241,216

   
  2,390    

Pioneer Energy Services Corporation, (5)

                           

35,157

   
  17,969    

RPC Inc.

                           

404,303

   
  11,088    

Schlumberger Limited

                           

1,201,826

   
    Total Energy Equipment & Services    

2,589,523

   
   

Food & Staples Retailing – 0.1% (0.1% of Total Investments)

 
  6,374    

Costco Wholesale Corporation

                           

749,200

   
  5,756    

Walgreen Co.

                           

395,840

   
    Total Food & Staples Retailing    

1,145,040

   
   

Food Products – 0.1% (0.1% of Total Investments)

 
  5,480    

Dean Foods Company

                           

83,954

   
  8,692    

General Mills, Inc.

                           

435,904

   
  3,760    

Hershey Foods Corporation

                           

331,444

   
  4,372    

Kraft Foods Inc.

                           

234,274

   
  3,459    

Mead Johnson Nutrition Company, Class A Shares

                           

316,291

   
  1,580    

Post Holdings Inc., (5)

                           

70,974

   
  12,450    

WhiteWave Foods Company, (5)

                           

370,886

   
    Total Food Products    

1,843,727

   
   

Health Care Equipment & Supplies – 0.1% (0.1% of Total Investments)

 
  8,148    

Baxter International, Inc.

                           

608,574

   
  2,530    

DexCom, Inc., (5)

                           

95,330

   
  1,900    

Insulet Corporation, (5)

                           

67,146

   
  560    

Intuitive Surgical, Inc., (5)

                           

256,228

   
  3,950    

Merit Medical Systems, Inc., (5)

                           

50,718

   
  4,417    

Veracyte Inc., (5)

                           

63,163

   
    Total Health Care Equipment & Supplies    

1,141,159

   
   

Health Care Providers & Services – 0.2% (0.1% of Total Investments)

 
  6,750    

AMN Healthcare Services Inc., (5)

                           

88,425

   
  5,690    

Bioscrip, Inc., (5)

                           

42,618

   
  3,100    

Capital Senior Living Corporation, (5)

                           

76,384

   
  5,489    

Express Scripts, Holding Company, (5)

                           

382,309

   
  10,810    

HCA Holdings Inc., (5)

                           

706,001

   
  5,043    

McKesson HBOC Inc.

                           

967,550

   
  6,290    

Select Medical Corporation

                           

97,747

   
  3,140    

Surgical Care Affiliates Inc., (5)

                           

92,253

   
  2,020    

Team Health Holdings Inc., (5)

                           

114,231

   
  7,990    

Universal American Corporation, (5)

                           

63,441

   
    Total Health Care Providers & Services    

2,630,959

   
   

Health Care Technology – 0.0% (0.0% of Total Investments)

 
  4,450    

MedAssets Inc., (5)

                           

94,518

   

Nuveen Investments
69



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Shares  

Description (1)

             

Value

 
   

Hotels, Restaurants & Leisure – 0.1% (0.1% of Total Investments)

 
  3,740    

ClubCorp Holdings Inc.

                         

$

63,243

   
  7,250    

Las Vegas Sands

                           

535,413

   
  1,580    

Marriott Vacations World, (5)

                           

90,929

   
  7,360    

MGM Resorts International Inc., (5)

                           

197,542

   
  4,690    

Penn National Gaming, Inc., (5)

                           

49,151

   
  5,588    

Starbucks Corporation

                           

434,076

   
  6,111    

Wyndham Worldwide Corporation

                           

461,686

   
    Total Hotels, Restaurants & Leisure    

1,832,040

   
   

Household Durables – 0.0% (0.0% of Total Investments)

 
  3,640    

Brookfield Residential Properties Inc., (5)

                           

67,304

   
   

Household Products – 0.1% (0.1% of Total Investments)

 
  8,509    

Colgate-Palmolive Company

                           

539,471

   
  5,043    

Kimberly-Clark Corporation

                           

523,816

   
    Total Household Products    

1,063,287

   
   

Industrial Conglomerates – 0.0% (0.0% of Total Investments)

 
  6,078    

Carlisle Companies Inc.

                           

486,362

   
   

Insurance – 0.1% (0.1% of Total Investments)

 
  5,060    

American Equity Investment Life Holding Company

                           

112,028

   
  2,060    

Argo Group International Holdings Inc.

                           

102,609

   
  5,361    

Fidelity & Guaranty Life

                           

115,851

   
  4,300    

FNFV Group, (5)

                           

70,348

   
  5,536    

Hanover Insurance Group Inc.

                           

320,036

   
  6,080    

Hilltop Holdings Inc., (5)

                           

124,640

   
  2,960    

Primerica Inc.

                           

136,397

   
    Total Insurance    

981,909

   
   

Internet & Catalog Retail – 0.1% (0.1% of Total Investments)

 
  1,790    

Amazon.com, Inc., (5)

                           

560,252

   
  898    

priceline.com Incorporated, (5)

                           

1,115,720

   
    Total Internet & Catalog Retail    

1,675,972

   
   

Internet Software & Services – 0.4% (0.2% of Total Investments)

 
  5,850    

eBay Inc., (5)

                           

308,880

   
  19,301    

Facebook Inc., Class A Shares, (5)

                           

1,402,218

   
  5,373    

Google Inc., Class A, (5)

                           

3,113,922

   
    Total Internet Software & Services    

4,825,020

   
   

IT Services – 0.3% (0.2% of Total Investments)

 
  3,850    

Cardtronics Inc., (5)

                           

148,456

   
  10,718    

Cognizant Technology Solutions Corporation, Class A, (5)

                           

525,718

   
  2,470    

CSG Systems International Inc.

                           

64,319

   
  4,850    

Evertec Inc.

                           

108,446

   
  3,081    

FleetCor Technologies Inc., (5)

                           

409,126

   
  4,263    

International Business Machines Corporation (IBM)

                           

817,089

   
  14,549    

MasterCard, Inc.

                           

1,078,806

   
  2,290    

VeriFone Holdings Inc., (5)

                           

76,738

   
  2,534    

Visa Inc.

                           

534,699

   
  1,120    

WEX Inc., (5)

                           

120,870

   
    Total IT Services    

3,884,267

   
   

Machinery – 0.2% (0.1% of Total Investments)

 
  3,760    

Barnes Group Inc.

                           

128,780

   
  2,238    

Cummins Inc.

                           

311,955

   
  10,027    

Donaldson Company, Inc.

                           

388,947

   

Nuveen Investments
70



Shares  

Description (1)

             

Value

 
    Machinery (continued)  
  4,363    

IDEX Corporation

                         

$

330,803

   
  2,590    

John Bean Technologies Corporation

                           

67,470

   
  4,590    

Lincoln Electric Holdings Inc.

                           

304,960

   
  7,340    

Meritor Inc., (5)

                           

92,264

   
  9,310    

Mueller Water Products Inc.

                           

72,153

   
  2,700    

Sun Hydraulics Corporation

                           

98,496

   
  6,582    

Wabtec Corporation

                           

531,036

   
    Total Machinery    

2,326,864

   
   

Marine – 0.0% (0.0% of Total Investments)

 
  2,616    

Kirby Corporation, (5)

                           

304,659

   
   

Media – 0.5% (0.4% of Total Investments)

 
  9,096    

CBS Outdoor Americas Inc.

                           

302,806

   
  23,769    

Comcast Corporation, Class A

                           

1,277,108

   
  17,644    

Cumulus Media, Inc., (5)

                           

91,396

   
  1,220    

Madison Square Garden Inc., (5)

                           

72,395

   
  6,068    

Scripps Networks Interactive, Class A Shares

                           

500,064

   
  4,140    

Starz, Class A, (5)

                           

118,031

   
  3,623    

Time Warner Cable, Class A

                           

525,697

   
  22,352    

Tribune Company, (5)

                           

1,844,040

   
  17,987    

Tribune Company, (5), (6)

                           

   
  5,588    

Tribune Publishing Company, (5)

                           

117,516

   
  7,040    

Twenty First Century Fox Inc., Class A Shares

                           

223,027

   
  9,314    

Viacom Inc., Class B

                           

769,988

   
  18,592    

Walt Disney Company

                           

1,596,681

   
    Total Media    

7,438,749

   
   

Multiline Retail – 0.0% (0.0% of Total Investments)

 
  6,026    

Macy's, Inc.

                           

348,243

   
   

Oil, Gas & Consumable Fuels – 0.2% (0.2% of Total Investments)

 
  1,760    

Carrizo Oil & Gas, Inc., (5)

                           

108,082

   
  6,580    

DHT Maritime Inc.

                           

43,560

   
  1,890    

Enlink Midstream LLC

                           

72,217

   
  4,605    

EOG Resources, Inc.

                           

503,971

   
  3,855    

EQT Corporation

                           

361,676

   
  2,720    

NuStar Group Holdings LLC

                           

114,947

   
  1,600    

Oasis Petroleum Inc., (5)

                           

85,520

   
  2,830    

Phillips 66

                           

229,541

   
  1,799    

Pioneer Natural Resources Company

                           

398,407

   
  2,330    

SemGroup Corporation, A Shares

                           

179,596

   
  5,621    

SM Energy Company

                           

441,473

   
  2,620    

Targa Resources Corporation

                           

334,050

   
  1,280    

Teekay Shipping Corporation

                           

71,245

   
    Total Oil, Gas & Consumable Fuels    

2,944,285

   
   

Paper & Forest Products – 0.0% (0.0% of Total Investments)

 
  1,050    

Clearwater Paper Corporation, (5)

                           

70,980

   
  4,240    

KapStone Paper and Packaging Corp., (5)

                           

126,098

   
    Total Paper & Forest Products    

197,078

   
   

Pharmaceuticals – 0.2% (0.1% of Total Investments)

 
  12,129    

AbbVie Inc.

                           

634,832

   
  5,330    

Actavis PLC, (5)

                           

1,142,006

   
  3,292    

Allergan, Inc.

                           

546,011

   
  9,396    

Bristol-Myers Squibb Company

                           

475,626

   
  330    

Jazz Pharmaceuticals, Inc., (5)

                           

46,111

   
    Total Pharmaceuticals    

2,844,586

   

Nuveen Investments
71



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Shares  

Description (1)

             

Value

 
   

Real Estate Investment Trust – 0.1% (0.1% of Total Investments)

 
  3,630    

Chesapeake Lodging Trust

                         

$

107,738

   
  9,010    

DiamondRock Hospitality Company

                           

110,463

   
  1,290    

EastGroup Properties Inc.

                           

80,444

   
  7,260    

iStar Financial Inc., (5)

                           

104,399

   
  1,160    

PS Business Parks Inc.

                           

95,700

   
  14,000    

Resource Capital Corporation

                           

77,140

   
  3,580    

Select Income REIT

                           

99,345

   
  2,718    

Simon Property Group, Inc.

                           

457,140

   
  1,149    

Washington Prime Group Inc.

                           

21,705

   
    Total Real Estate Investment Trust    

1,154,074

   
   

Real Estate Management & Development – 0.1% (0.0% of Total Investments)

 
  770    

Altisource Portfolio Solutions SA, (5)

                           

83,453

   
  16,042    

CBRE Group Inc., (5)

                           

494,735

   
    Total Real Estate Management & Development    

578,188

   
   

Road & Rail – 0.1% (0.1% of Total Investments)

 
  950    

Genesee & Wyoming Inc., (5)

                           

94,744

   
  3,753    

Kansas City Southern Industries

                           

409,302

   
  13,298    

Union Pacific Corporation

                           

1,307,326

   
    Total Road & Rail    

1,811,372

   
   

Semiconductors & Equipment – 0.1% (0.1% of Total Investments)

 
  6,965    

Avago Technologies Limited

                           

483,232

   
  9,160    

Broadcom Corporation, Class A

                           

350,462

   
  3,910    

Inphi Corporation, (5)

                           

59,667

   
  16,556    

Intel Corporation

                           

561,083

   
  3,100    

MA-COM Technology Solutions Holdings Incorporated, (5)

                           

61,690

   
  5,458    

Microchip Technology Incorporated

                           

245,719

   
    Total Semiconductors & Equipment    

1,761,853

   
   

Software – 0.3% (0.2% of Total Investments)

 
  1,690    

Aspen Technology Inc., (5)

                           

73,414

   
  3,950    

Manhattan Associates Inc., (5)

                           

115,972

   
  48,536    

Microsoft Corporation

                           

2,094,814

   
  33,085    

Oracle Corporation

                           

1,336,303

   
  12,481    

Parametric Technology Corporation, (5)

                           

448,817

   
  10,205    

Salesforce.com, Inc., (5)

                           

553,621

   
  7,530    

TiVo, Inc., (5)

                           

101,354

   
    Total Software    

4,724,295

   
   

Specialty Retail – 0.2% (0.1% of Total Investments)

 
  2,820    

CST Brands Inc.

                           

94,273

   
  7,280    

Gap, Inc.

                           

292,001

   
  16,774    

Home Depot, Inc.

                           

1,356,178

   
  1,700    

Lithia Motors Inc.

                           

151,045

   
  4,283    

O'Reilly Automotive Inc., (5)

                           

642,450

   
  3,980    

Restoration Hardware Holdings Incorporated, (5)

                           

325,524

   
    Total Specialty Retail    

2,861,471

   
   

Textiles, Apparel & Luxury Goods – 0.1% (0.1% of Total Investments)

 
  1,530    

Kate Spade & Company, (5)

                           

57,880

   
  6,101    

Michael Kors Holdings Limited, (5)

                           

497,109

   
  2,120    

Movado Group Inc.

                           

86,772

   
  7,690    

Nike, Inc., Class B

                           

593,130

   
  8,032    

VF Corporation

                           

492,121

   
    Total Textiles, Apparel & Luxury Goods    

1,727,012

   

Nuveen Investments
72



Shares

 

Description (1)

             

Value

 
   

Thrifts & Mortgage Finance – 0.0% (0.0% of Total Investments)

 
 

2,440

   

First Defiance Financial Corporation

                         

$

65,904

   
 

5,980

   

NMI Holdings Inc., Class A Shares, (5)

                           

59,740

   
    Total Thrifts & Mortgage Finance    

125,644

   
   

Tobacco – 0.0% (0.0% of Total Investments)

 
 

2,899

   

Lorillard Inc.

                           

175,332

   
 

3,181

   

Philip Morris International

                           

260,874

   
    Total Tobacco    

436,206

   
   

Trading Companies & Distributors – 0.0% (0.0% of Total Investments)

 
 

2,980

   

CAI International Inc., (5)

                           

56,888

   
 

3,470

   

H&E Equipment Services, Inc.

                           

125,545

   
 

1,310

   

Watsco Inc.

                           

117,337

   
    Total Trading Companies & Distributors    

299,770

   
       

Total Common Stocks (cost $91,732,223)

                           

99,584,770

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CONVERTIBLE BONDS – 0.7% (0.5% of Total Investments)

 
   

Internet Software & Services – 0.7% (0.5% of Total Investments)

 

$

10,000

   

Yahoo! Inc., Convertible Bond, 144A

   

0.000

%

 

12/01/18

 

BB+

 

$

10,081,250

   

$

10,000

   

Total Convertible Bonds (cost $10,288,912)

                           

10,081,250

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 21.5% (14.7% of Total Investments)

 
   

Chemicals – 0.6% (0.4% of Total Investments)

 

$

7,500

   

Hexion US Finance

   

6.625

%

 

4/15/20

 

B1

 

$

7,800,000

   
   

Commercial Services & Supplies – 0.3% (0.2% of Total Investments)

 
 

3,900

   

NES Rental Holdings Inc., 144A

   

7.875

%

 

5/01/18

 

CCC+

   

4,056,000

   
   

Communications Equipment – 0.3% (0.2% of Total Investments)

 
 

5,000

   

Avaya Inc., 144A

   

7.000

%

 

4/01/19

 

B1

   

4,887,500

   
   

Diversified Telecommunication Services – 1.8% (1.2% of Total Investments)

 
 

22,750

   

WideOpenWest Finance Capital Corporation

   

10.250

%

 

7/15/19

 

CCC+

   

25,224,063

   
   

Electronic Equipment & Instruments – 0.1% (0.1% of Total Investments)

 
 

1,200

   

Kemet Corporation

   

10.500

%

 

5/01/18

 

B–

   

1,260,000

   
   

Health Care Equipment & Supplies – 3.6% (2.5% of Total Investments)

 
 

1,000

   

Convatec Finance International SA, 144A

   

8.250

%

 

1/15/19

 

B–

   

1,023,750

   
 

19,000

   

Kinetic Concepts

   

12.500

%

 

11/01/19

 

CCC+

   

21,257,200

   
 

25,460

   

Tenet Healthcare Corporation

   

8.125

%

 

4/01/22

 

B3

   

28,451,550

   
 

45,460

   

Total Health Care Equipment & Supplies

                           

50,732,500

   
   

Health Care Providers & Services – 1.0% (0.7% of Total Investments)

 
 

12,000

   

Community Health Systems, Inc.

   

6.875

%

 

2/01/22

 

B

   

12,270,000

   
 

1,000

   

Wellcare Health Plans Inc.

   

5.750

%

 

11/15/20

 

BB

   

1,020,000

   
 

13,000

   

Total Health Care Providers & Services

                           

13,290,000

   
   

Hotels, Restaurants & Leisure – 0.2% (0.1% of Total Investments)

 
 

2,000

   

MGM Resorts International Inc.

   

7.750

%

 

3/15/22

 

B+

   

2,300,000

   

Nuveen Investments
73



JQC  Nuveen Credit Strategies Income Fund
Portfolio of Investments
(continued)  July 31, 2014

Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Media – 4.2% (2.8% of Total Investments)

 

$

10,609

   

Clear Channel Communications, Inc.

   

9.000

%

 

12/15/19

 

CCC+

 

$

10,887,485

   
  36,054    

Clear Channel Communications, Inc.

   

14.000

%

 

2/01/21

 

CCC–

   

35,964,279

   
  300    

Clear Channel Communications, Inc.

   

9.000

%

 

3/01/21

 

CCC+

   

310,125

   
  10,000    

McGraw-Hill Global Education Holdings

   

9.750

%

 

4/01/21

 

BB

   

11,150,000

   
  56,963    

Total Media

                           

58,311,889

   
   

Oil, Gas & Consumable Fuels – 0.5% (0.4% of Total Investments)

 
  5,000    

Oasis Petroleum Inc., 144A

   

6.875

%

 

3/15/22

 

B+

   

5,412,500

   
  2,000    

Oasis Petroleum Inc.

   

6.875

%

 

1/15/23

 

B+

   

2,165,000

   
  7,000    

Total Oil, Gas & Consumable Fuels

                           

7,577,500

   
   

Pharmaceuticals – 2.1% (1.4% of Total Investments)

 
  14,000    

Jaguar Holding Company I, 144A

   

9.375

%

 

10/15/17

 

CCC+

   

14,245,000

   
  13,887    

Salix Pharmaceuticals Limited, 144A

   

6.000

%

 

1/15/21

 

B

   

14,511,915

   
  27,887    

Total Pharmaceuticals

                           

28,756,915

   
   

Professional Services – 0.3% (0.2% of Total Investments)

 
  4,000    

Ceridian Corporation, 144A

   

8.125

%

 

11/15/17

 

CCC

   

3,990,000

   
   

Software – 1.0% (0.7% of Total Investments)

 
  5,000    

BMC Software Finance Inc., 144A

   

8.125

%

 

7/15/21

 

CCC+

   

4,975,000

   
  2,000    

Emdeon Inc.

   

11.000

%

 

12/31/19

 

CCC+

   

2,250,000

   
  3,000    

Infor Us Inc.

   

11.500

%

 

7/15/18

 

B–

   

3,352,500

   
  3,375    

Infor Us Inc.

   

9.375

%

 

4/01/19

 

B–

   

3,687,188

   
  13,375    

Total Software

                           

14,264,688

   
   

Specialty Retail – 1.3% (0.9% of Total Investments)

 
  7,000     99 Cents Only Stores    

11.000

%

 

12/15/19

 

CCC+

   

7,665,000

   
  9,500    

Claire's Stores, Inc., 144A

   

9.000

%

 

3/15/19

 

B2

   

9,571,250

   
  1,200    

Claire's Stores, Inc.

   

10.500

%

 

6/01/17

 

CCC

   

1,128,000

   
  17,700    

Total Specialty Retail

                           

18,364,250

   
   

Trading Companies & Distributors – 1.2% (0.8% of Total Investments)

 
  14,650    

HD Supply Inc.

   

11.500

%

 

7/15/20

 

CCC+

   

17,067,250

   
   

Wireless Telecommunication Services – 3.0% (2.1% of Total Investments)

 
  2,500    

Sprint Corporation, 144A

   

7.250

%

 

9/15/21

 

BB–

   

2,662,500

   
  32,000    

Sprint Corporation, 144A

   

7.875

%

 

9/15/23

 

BB–

   

34,240,000

   
  5,000    

T-Mobile USA Inc.

   

6.250

%

 

4/01/21

 

BB

   

5,225,000

   
  39,500    

Total Wireless Telecommunication Services

                           

42,127,500

   

$

281,885

   

Total Corporate Bonds (cost $282,796,998)

                           

300,010,055

   
Shares  

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

STRUCTURED NOTES – 2.0% (1.3% of Total Investments)

 
  132,000    

Barclays Bank PLC

   

6.300

%

 

3/25/15

         

$

10,203,600

   
  326,000    

Barclays Bank PLC, (11)

   

4.750

%

 

8/06/15

           

9,656,120

   
  106,800    

Wells Fargo Bank NA, 144A, (11)

   

5.410

%

 

8/06/15

           

7,284,828

   
    Total Structured Notes (cost $27,510,536)    

27,144,548

   
    Total Long-Term Investments (cost $1,902,854,060)    

1,938,210,293

   

Nuveen Investments
74



Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 7.8% (5.3% of Total Investments)

 

$

108,776


  Repurchase Agreement with Fixed Income Clearing Corporation, dated 7/31/14,
repurchase price $108,776,110, collateralized by: $25,525,000 U.S. Treasury Notes,
0.375%, due 2/15/16, value $25,25,581,602 and $85,375,000 U.S. Treasury Notes,
0.090%, due 7/31/16, value $85,375,000
  0.000
 
 
 

%

  8/01/14
 
 
 
   
 
 
 
 

$

108,776,110


 
      Total Short-Term Investments (cost $108,776,110)    

108,776,110

   
      Total Investments (cost $2,011,630,170) – 146.6%    

2,046,986,403

   
      Borrowings – (43.4)% (8), (9)    

(606,000,000

)

 
      Other Assets Less Liabilities – (3.2)% (10)    

(44,683,843

)

 
      Net Assets Applicable to Common Shares – 100%  

$

1,396,302,560

   

Investments in Derivatives as of July 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (10)
 

Morgan Stanley

 

$

103,075,000

   

Receive

 

1-Month USD-LIBOR-BBA

   

2.064

%

 

Monthly

 

3/21/16

 

$

(2,744,568

)

 

  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 applicable to common shares unless otherwise noted.

(2)  Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown.

(3)  Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. 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.

(4)  Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period.

(5)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(6)  Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Nuveen funds' Board of Directors/Trustees. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 2– Investment Valuation and Fair Value Measurements for more information.

(7)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2– Investment Valuation and Fair Value Measurements for more information.

(8)  Borrowings as a percentage of Total Investments is 29.6%.

(9)  The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings.

(10)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

(11)  For fair value measurement disclosure purposes, Structured Notes classified as Level 2. See Notes to Financial Statements, Note 2– Investment Valuation and Fair Value Measurements, for more information.

DD1  Portion of investment purchased on a delayed delivery basis.

WI/DD  Purchased on a when-issued or delayed delivery basis.

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.

REIT  Real Estate Investment Trust.

TBD  Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date.

USD-LIBOR-BBA  United States Dollar – London Inter-Bank Offered Rate British Bankers' Association.

    See accompanying notes to financial statements.

Nuveen Investments
75




Statement of

Assets and Liabilities  July 31, 2014

    Senior
Income
(NSL)
  Floating Rate
Income
(JFR)
  Floating Rate
Income
Opportunity
(JRO)
  Short Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Assets

 
Long-term investments, at value (cost $431,559,243, $1,031,535,253,
$733,036,847, $260,334,099 and $1,902,854,060, respectively)
 

$

434,955,611

   

$

1,040,267,129

   

$

743,001,368

   

$

265,478,019

   

$

1,938,210,293

   

Short-term investments, at value (cost approximates value)

   

22,293,481

     

65,639,189

     

32,660,097

     

20,820,856

     

108,776,110

   

Cash

   

     

     

1,588,494

     

     

   

Cash collateral at brokers(1)

   

704,350

     

1,642,915

     

875,000

     

530,000

     

2,948,000

   

Credit default swaps premiums paid

   

     

     

     

183,987

     

   

Unrealized appreciation on credit default swaps

   

     

     

     

45,485

     

   

Receivable for:

 

Dividends

   

     

     

     

     

44,883

   

Interest

   

3,074,244

     

6,998,980

     

5,394,397

     

1,800,661

     

14,239,500

   

Investments sold

   

14,995,224

     

24,831,503

     

18,391,422

     

4,073,680

     

24,599,780

   

Reclaims

   

     

     

     

     

25,624

   

Shares sold through shelf offering

   

     

31,001

     

     

     

   

Deferred offering costs

   

583,648

     

1,175,824

     

856,747

     

     

   

Other assets

   

137,075

     

256,407

     

172,319

     

18,096

     

849,459

   

Total assets

   

476,743,633

     

1,140,842,948

     

802,939,844

     

292,950,784

     

2,089,693,649

   

Liabilities

 

Borrowings

   

112,000,000

     

269,000,000

     

188,000,000

     

85,000,000

     

606,000,000

   

Unrealized depreciation on interest rate swaps

   

550,340

     

1,471,592

     

872,730

     

298,622

     

2,744,568

   

Payable for:

 

Common share dividends

   

1,326,728

     

3,271,445

     

2,391,942

     

941,024

     

5,852,659

   

Investments purchased

   

13,853,999

     

31,241,966

     

24,217,377

     

9,596,879

     

76,722,645

   

Offering costs

   

28,638

     

     

     

     

   

Unfunded senior loans

   

133,735

     

793,786

     

551,839

     

133,735

     

   

Variable Rate Term Preferred ("VRTP") Shares, at liquidation value

   

58,000,000

     

139,000,000

     

98,000,000

     

     

   

Accrued expenses:

 

Interest

   

104,288

     

242,174

     

175,983

     

54,490

     

43,628

   

Management fees

   

319,826

     

751,168

     

532,097

     

195,624

     

1,380,681

   

Trustees fees

   

47,594

     

88,697

     

55,452

     

7,574

     

251,887

   

Shelf offering costs

   

99,857

     

46,620

     

93,295

     

     

18,734

   

Other

   

190,526

     

351,148

     

264,923

     

109,383

     

376,287

   

Total liabilities

   

186,655,531

     

446,258,596

     

315,155,638

     

96,337,331

     

693,391,089

   

Net assets applicable to common shares

 

$

290,088,102

   

$

694,584,352

   

$

487,784,206

   

$

196,613,453

   

$

1,396,302,560

   

Common shares outstanding

   

38,626,872

     

55,169,216

     

38,478,782

     

10,095,286

     

136,215,298

   

Net asset value ("NAV") per common share outstanding

 

$

7.51

   

$

12.59

   

$

12.68

   

$

19.48

   

$

10.25

   

Net assets applicable to common shares consist of:

 

Common shares, $.01 par value per share

 

$

386,269

   

$

551,692

   

$

384,788

   

$

100,953

   

$

1,362,153

   

Paid-in surplus

   

324,969,238

     

766,748,038

     

527,121,180

     

192,369,788

     

1,839,255,011

   

Undistributed (Over-distribution of) net investment income

   

(1,407,209

)

   

(3,020,467

)

   

(1,962,572

)

   

(1,128,155

)

   

(7,365,007

)

 

Accumulated net realized gain (loss)

   

(36,706,670

)

   

(76,956,087

)

   

(46,851,576

)

   

379,787

     

(469,564,681

)

 

Net unrealized appreciation (depreciation)

   

2,846,474

     

7,261,176

     

9,092,386

     

4,891,080

     

32,615,084

   

Net assets applicable to common shares

 

$

290,088,102

   

$

694,584,352

   

$

487,784,206

   

$

196,613,453

   

$

1,396,302,560

   

Authorized shares:

 

Common

   

Unlimited

     

Unlimited

     

Unlimited

     

Unlimited

     

Unlimited

   

Preferred

   

Unlimited

     

Unlimited

     

Unlimited

     

Unlimited

     

Unlimited

   

(1)  Cash pledged to collateralize the net payment obligations for investments in derivatives.

See accompanying notes to financial statements.

Nuveen Investments
76



Statement of

Operations  Year Ended July 31, 2014

    Senior
Income
(NSL)
  Floating Rate
Income
(JFR)
  Floating Rate
Income
Opportunity
(JRO)
  Short Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Investment Income

 
Interest and dividends (net of foreign tax withheld of $18,436,
$18,918, $18,918, $0 and $3,088, respectively)
 

$

22,585,966

   

$

54,067,688

   

$

38,870,661

   

$

16,259,153

   

$

103,535,734

   

Fees

   

732,666

     

1,515,888

     

1,231,360

     

474,305

     

2,418,365

   

Total investment income

   

23,318,632

     

55,583,576

     

40,102,021

     

16,733,458

     

105,954,099

   

Expenses

 

Management fees

   

3,580,915

     

8,439,572

     

5,942,000

     

2,323,137

     

15,932,402

   

Shareholder servicing agent fees and expenses

   

12,648

     

10,610

     

10,046

     

218

     

6,602

   

Interest expense and amortization of offering costs

   

2,089,184

     

4,908,696

     

3,442,151

     

992,727

     

7,205,369

   

Custodian fees and expenses

   

187,360

     

366,980

     

265,770

     

129,917

     

586,959

   

Trustees fees and expenses

   

13,370

     

32,203

     

22,330

     

8,864

     

61,062

   

Professional fees

   

103,676

     

120,802

     

115,130

     

8,775

     

102,231

   

Shareholder reporting expenses

   

59,960

     

97,241

     

81,145

     

34,102

     

247,828

   

Stock exchange listing fees

   

15,248

     

20,788

     

11,840

     

8,766

     

44,214

   

Investor relations expenses

   

50,557

     

115,596

     

80,663

     

31,842

     

158,022

   

Shelf offering expenses

   

91,620

     

133,453

     

72,485

     

185,347

     

291,995

   

Other expenses

   

21,631

     

34,437

     

27,289

     

13,889

     

48,268

   

Total expenses before expense reimbursement

   

6,226,169

     

14,280,378

     

10,070,849

     

3,737,584

     

24,684,952

   

Expense reimbursement

   

     

     

     

     

(145,998

)

 

Net expenses

   

6,226,169

     

14,280,378

     

10,070,849

     

3,737,584

     

24,538,954

   

Net investment income (loss)

   

17,092,463

     

41,303,198

     

30,031,172

     

12,995,874

     

81,415,145

   

Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) from:

 

Investments and foreign currency

   

3,139,965

     

5,977,009

     

4,586,814

     

1,603,624

     

35,651,566

   

Swaps

   

(531,232

)

   

(1,420,498

)

   

(842,428

)

   

(763,186

)

   

(2,646,702

)

 

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(937,044

)

   

(2,127,767

)

   

1,039,424

     

(1,381,412

)

   

(12,338,040

)

 

Swaps

   

423,385

     

1,132,120

     

671,405

     

263,554

     

2,084,814

   

Net realized and unrealized gain (loss)

   

2,095,074

     

3,560,864

     

5,455,215

     

(277,420

)

   

22,751,638

   
Net increase (decrease) in net assets applicable to
common shares from operations
 

$

19,187,537

   

$

44,864,062

   

$

35,486,387

   

$

12,718,454

   

$

104,166,783

   

See accompanying notes to financial statements.

Nuveen Investments
77



Statement of

Changes in Net Assets

   

Senior Income (NSL)

 

Floating Rate Income (JFR)

 
    Year
Ended
7/31/14
  Year
Ended
7/31/13
  Year
Ended
7/31/14
  Year
Ended
7/31/13
 

Operations

 

Net investment income (loss)

 

$

17,092,463

   

$

19,032,240

   

$

41,303,198

   

$

46,679,908

   

Net realized gain (loss) from:

 

Investments and foreign currency

   

3,139,965

     

(1,360,386

)

   

5,977,009

     

9,001,577

   

Securities sold short

   

     

     

     

   

Options written

   

     

     

     

   

Options purchased

   

     

     

     

   

Swaps

   

(531,232

)

   

(571,402

)

   

(1,420,498

)

   

(1,527,913

)

 

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(937,044

)

   

13,813,567

     

(2,127,767

)

   

25,426,205

   

Securities sold short

   

     

     

     

   

Options written

   

     

     

     

   

Options purchased

   

     

     

     

   

Swaps

   

423,385

     

559,590

     

1,132,120

     

1,496,326

   
Net increase (decrease) in net assets applicable
to common shares from operations
   

19,187,537

     

31,473,609

     

44,864,062

     

81,076,103

   

Distributions to Common Shareholders

 

From net investment income

   

(17,150,331

)

   

(19,858,581

)

   

(41,928,604

)

   

(49,952,877

)

 

From accumulated net realized gains

   

     

     

     

   
Decrease in net assets applicable to common
shares from distributions to common shareholders
   

(17,150,331

)

   

(19,858,581

)

   

(41,928,604

)

   

(49,952,877

)

 

Capital Share Transactions

 

Common shares:

 

Proceeds from shelf offering, net of offering costs and adjustments

   

     

44,273,857

     

284,185

     

87,398,181

   
Net proceeds from shares issued to shareholders
due to reinvestment of distributions
   

25,528

     

270,527

     

52,666

     

672,744

   

Cost of shares repurchased and retired

   

     

     

     

   
Net increase (decrease) in net assets applicable to
common shares from capital share transactions
   

25,528

     

44,544,384

     

336,851

     

88,070,925

   
Net increase (decrease) in net assets applicable to
common shares
   

2,062,734

     

56,159,412

     

3,272,309

     

119,194,151

   
Net assets applicable to common shares at the
beginning of period
   

288,025,368

     

231,865,956

     

691,312,043

     

572,117,892

   
Net assets applicable to common shares at
the end of period
 

$

290,088,102

   

$

288,025,368

   

$

694,584,352

   

$

691,312,043

   
Undistributed (Over-distribution of) net
investment income at the end of period
 

$

(1,407,209

)

 

$

(954,461

)

 

$

(3,020,467

)

 

$

(1,507,280

)

 

See accompanying notes to financial statements.

Nuveen Investments
78



    Floating Rate
Income Opportunity (JRO)
  Short Duration
Credit Opportunities (JSD)
 
    Year
Ended
7/31/14
  Year
Ended
7/31/13
  Year
Ended
7/31/14
  Year
Ended
7/31/13
 

Operations

 

Net investment income (loss)

 

$

30,031,172

   

$

32,619,976

   

$

12,995,874

   

$

16,155,471

   

Net realized gain (loss) from:

 

Investments and foreign currency

   

4,586,814

     

6,496,242

     

1,603,624

     

4,230,472

   

Securities sold short

   

     

     

     

   

Options written

   

     

     

     

   

Options purchased

   

     

     

     

   

Swaps

   

(842,428

)

   

(906,131

)

   

(763,186

)

   

(1,181,152

)

 

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

1,039,424

     

16,500,807

     

(1,381,412

)

   

1,752,372

   

Securities sold short

   

     

     

     

   

Options written

   

     

     

     

   

Options purchased

   

     

     

     

   

Swaps

   

671,405

     

887,399

     

263,554

     

160,619

   
Net increase (decrease) in net assets applicable
to common shares from operations
   

35,486,387

     

55,598,293

     

12,718,454

     

21,117,782

   

Distributions to Common Shareholders

 

From net investment income

   

(30,513,055

)

   

(35,370,449

)

   

(13,830,542

)

   

(16,162,038

)

 

From accumulated net realized gains

   

     

     

(3,300,149

)

   

(749,442

)

 
Decrease in net assets applicable to common
shares from distributions to common shareholders
   

(30,513,055

)

   

(35,370,449

)

   

(17,130,691

)

   

(16,911,480

)

 

Capital Share Transactions

 

Common shares:

 

Proceeds from shelf offering, net of offering costs and adjustments

   

542,095

     

91,655,153

     

(5,690

)

   

731,375

   
Net proceeds from shares issued to shareholders
due to reinvestment of distributions
   

64,515

     

382,664

     

     

928,903

   

Cost of shares repurchased and retired

   

     

     

     

   
Net increase (decrease) in net assets applicable to
common shares from capital share transactions
   

606,610

     

92,037,817

     

(5,690

)

   

1,660,278

   
Net increase (decrease) in net assets applicable to
common shares
   

5,579,942

     

112,265,661

     

(4,417,927

)

   

5,866,580

   
Net assets applicable to common shares at the
beginning of period
   

482,204,264

     

369,938,603

     

201,031,380

     

195,164,800

   
Net assets applicable to common shares at
the end of period
 

$

487,784,206

   

$

482,204,264

   

$

196,613,453

   

$

201,031,380

   
Undistributed (Over-distribution of) net
investment income at the end of period
 

$

(1,962,572

)

 

$

(1,047,840

)

 

$

(1,128,155

)

 

$

(187,026

)

 

See accompanying notes to financial statements.

Nuveen Investments
79



Statement of Changes in Net Assets (continued)

   

Credit Strategies Income (JQC)

 
    Year
Ended
7/31/14
  Seven Months
Ended
7/31/13
  Year
Ended
12/31/12
 

Operations

 

Net investment income (loss)

 

$

81,415,145

   

$

57,620,766

   

$

106,877,853

   

Net realized gain (loss) from:

 

Investments and foreign currency

   

35,651,566

     

20,210,478

     

30,157,518

   

Securities sold short

   

     

     

(2,844,562

)

 

Options written

   

     

     

4,936,415

   

Options purchased

   

     

     

(279,861

)

 

Swaps

   

(2,646,702

)

   

(1,721,895

)

   

(2,872,297

)

 

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(12,338,040

)

   

18,898,568

     

68,849,402

   

Securities sold short

   

     

     

1,970,142

   

Options written

   

     

     

(2,080,052

)

 

Options purchased

   

     

     

278,611

   

Swaps

   

2,084,814

     

1,872,863

     

(255,166

)

 
Net increase (decrease) in net assets applicable
to common shares from operations
   

104,166,783

     

96,880,780

     

204,738,003

   

Distributions to Common Shareholders

 

From net investment income

   

(87,747,986

)

   

(63,041,472

)

   

(109,325,873

)

 

From accumulated net realized gains

   

     

     

   
Decrease in net assets applicable to common
shares from distributions to common shareholders
   

(87,747,986

)

   

(63,041,472

)

   

(109,325,873

)

 

Capital Share Transactions

 

Common shares:

 

Proceeds from shelf offering, net of offering costs and adjustments

   

     

     

   
Net proceeds from shares issued to shareholders
due to reinvestment of distributions
   

     

764,252

     

   

Cost of shares repurchased and retired

   

(377,250

)

   

     

   
Net increase (decrease) in net assets applicable to
common shares from capital share transactions
   

(377,250

)

   

764,252

     

   
Net increase (decrease) in net assets applicable to
common shares
   

16,041,547

     

34,603,560

     

95,412,130

   
Net assets applicable to common shares at the
beginning of period
   

1,380,261,013

     

1,345,657,453

     

1,250,245,323

   
Net assets applicable to common shares at
the end of period
 

$

1,396,302,560

   

$

1,380,261,013

   

$

1,345,657,453

   
Undistributed (Over-distribution of) net
investment income at the end of period
 

$

(7,365,007

)

 

$

(6,741,172

)

 

$

(13,245,643

)

 

See accompanying notes to financial statements.

Nuveen Investments
80



Statement of

Cash Flows  Year Ended July 31, 2014

    Senior
Income
(NSL)
  Floating Rate
Income
(JFR)
  Floating Rate
Income
Opportunity
(JRO)
  Short Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Cash Flows from Operating Activities:

 
Net Increase (Decrease) In Net Assets Applicable to
Common Shares from Operations
 

$

19,187,537

   

$

44,864,062

   

$

35,486,387

   

$

12,718,454

   

$

104,166,783

   

 

Adjustments to reconcile the net increase (decrease) in
net assets applicable to common shares from operations
to net cash provided by (used in) operating activities:
 

 

Purchases of investments

   

(271,915,803

)

   

(592,015,810

)

   

(458,647,837

)

   

(124,328,298

)

   

(1,287,681,322

)

 

Proceeds from sales and maturities of investments

   

242,306,465

     

528,129,466

     

389,910,932

     

142,620,785

     

1,227,817,228

   

Proceeds from (Purchases of) short-term investments, net

   

(4,470,867

)

   

(34,720,765

)

   

1,925,486

     

(20,820,856

)

   

(8,112,133

)

 

Proceeds from (Payments for) swap contracts, net

   

(531,232

)

   

(1,420,498

)

   

(842,428

)

   

(763,186

)

   

(2,646,702

)

 

Amortization (Accretion) of premiums and discounts, net

   

(1,252,158

)

   

(3,558,427

)

   

(2,454,546

)

   

(787,360

)

   

(3,193,258

)

 

(Increase) Decrease in:

 

Cash collateral at brokers

   

520,001

     

914,001

     

930,000

     

(26,000

)

   

(2,948,000

)

 

Credit default swaps premiums paid

   

     

     

     

(95,050

)

   

   

Receivable for dividends

   

     

     

     

     

54,573

   

Receivable for interest

   

(675,312

)

   

(1,415,293

)

   

(1,153,860

)

   

199,947

     

312,992

   

Receivable for investments sold

   

2,713,575

     

14,762,495

     

5,617,156

     

12,397,814

     

16,141,509

   

Receivable for reclaims

   

     

     

     

     

119,652

   

Other assets

   

195,837

     

376,010

     

224,612

     

151,175

     

(179,995

)

 

Increase (Decrease) in:

 

Payable for investments purchased

   

(13,262,810

)

   

(23,107,338

)

   

(18,104,656

)

   

(3,641,663

)

   

18,462,005

   

Payable for unfunded senior loans

   

133,735

     

793,786

     

551,839

     

133,735

     

   

Accrued interest

   

80,654

     

185,422

     

137,189

     

5,278

     

(188,251

)

 

Accrued management fees

   

35,659

     

79,701

     

65,056

     

(2,210

)

   

48,732

   

Accrued Trustees fees

   

(7,613

)

   

907

     

1,514

     

2,497

     

(14,053

)

 

Accrued other expenses

   

3,257

     

(2,548

)

   

(1,005

)

   

(28,594

)

   

(136,148

)

 

Net realized (gain) loss from:

 

Investments and foreign currency

   

(3,139,965

)

   

(5,977,009

)

   

(4,586,814

)

   

(1,603,624

)

   

(35,651,566

)

 

Swaps

   

531,232

     

1,420,498

     

842,428

     

763,186

     

2,646,702

   

Change in net unrealized (appreciation) depreciation of:

 

Investments and foreign currency

   

937,044

     

2,127,767

     

(1,039,424

)

   

1,381,412

     

12,338,040

   

Swaps

   

(423,385

)

   

(1,132,120

)

   

(671,405

)

   

(263,554

)

   

(2,084,814

)

 

Taxes paid on undistributed capital gains

   

     

     

(28

)

   

(2,985

)

   

   

Proceeds from litigation settlement

   

8,250

     

14,950

     

     

     

1,433,741

   

Net cash provided by (used in) operating activities

   

(29,025,899

)

   

(69,680,743

)

   

(51,809,404

)

   

18,010,903

     

40,705,715

   

Cash Flows from Financing Activities:

 

(Increase) Decrease in deferred offering costs

   

(583,648

)

   

(1,175,824

)

   

(856,747

)

   

     

   

Proceeds from borrowings

   

27,000,000

     

65,800,000

     

51,100,000

     

     

45,000,000

   

Repayments of borrowings

   

(38,000,000

)

   

(92,000,000

)

   

(65,000,000

)

   

     

   

Increase (Decrease) in:

 

Cash overdraft

   

     

     

     

(439,218

)

   

   

Payable for offering costs

   

28,638

     

     

     

     

   

Accrued shelf offering costs

   

(70,964

)

   

(103,328

)

   

(75,918

)

   

(160,000

)

   

18,734

   

VRTP Shares, at liquidation value

   

58,000,000

     

139,000,000

     

98,000,000

     

     

   

Cash distribution paid to common shareholders

   

(17,348,127

)

   

(42,403,595

)

   

(30,805,828

)

   

(17,405,995

)

   

(90,218,199

)

 
Proceeds from shelf offering, net of offering costs
and adjustments
   

     

563,490

     

1,036,391

     

(5,690

)

   

   

Cost of common shares repurchased and retired

   

     

     

     

     

(377,250

)

 

Net cash provided by (used in) financing activities

   

29,025,899

     

69,680,743

     

53,397,898

     

(18,010,903

)

   

(45,576,715

)

 

Net Increase (Decrease) in Cash

   

     

     

1,588,494

     

     

(4,871,000

)

 

Cash at the beginning of period

   

     

     

     

     

4,871,000

   

Cash at the end of period

 

$

   

$

   

$

1,588,494

   

$

   

$

   

See accompanying notes to financial statements.

Nuveen Investments
81



Statement of Cash Flows (continued)

Supplemental Disclosures of Cash Flow Information

  Senior
Income
(NSL)
  Floating Rate
Income
(JFR)
  Floating Rate
Income
Opportunity
(JRO)
  Short Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 
Cash paid for interest (excluding borrowing costs and
amortization of offering costs)
 

$

1,635,713

   

$

3,888,109

   

$

2,724,176

   

$

893,298

   

$

6,795,341

   
Non-cash operating activities not included herein consist of
payment-in-kind distributions
   

30,239

     

58,038

     

58,397

     

20,478

     

356,974

   
Non-cash financing activities not included herein consists of
reinvestments of common share distributions
   

25,528

     

52,666

     

64,515

     

     

   

See accompanying notes to financial statements.

Nuveen Investments
82



THIS PAGE INTENTIONALLY LEFT BLANK

Nuveen Investments
83




Financial

Highlights

Selected data for a common share outstanding throughout each period:

       
       

Investment Operations

 

Less Distributions

                     
    Beginning
Common
Share
NAV
  Net
Investment
Income
(Loss)(a)
  Net
Realized/
Unrealized
Gain (Loss)
  Distributions
from Net
Investment
Income to
Preferred
Share-
holders(b)
  Distributions
from
Accumulated
Net
Realized
Gains to
Preferred
Share-
holders(b)
 

Total

  From
Net
Investment
Income to
Common
Share-
holders
  From
Accum-
ulated
Net
Realized
Gains to
Common
Share-
holders
 

Total

  Offering
Costs
  Discount
from
Common
Shares
Repurchased
and Retired
  Premium
from
Common
Shares
Sold
through
Shelf
Offering
  Ending
Common
Share
NAV
  Ending
Market
Value
 

Senior Income (NSL)

         

Year Ended 7/31:

 

2014

 

$

7.46

   

$

.44

   

$

.05

   

$

   

$

   

$

.49

   

$

(.44

)

 

$

   

$

(.44

)

 

$

   

$

   

$

   

$

7.51

   

$

6.98

   

2013

   

7.07

     

.54

     

.35

     

     

     

.89

     

(.56

)

   

     

(.56

)

   

(.01

)

   

     

.07

     

7.46

     

7.45

   

2012

   

7.12

     

.57

     

(.10

)

   

     

     

.47

     

(.54

)

   

     

(.54

)

   

     

     

.02

     

7.07

     

7.29

   

2011

   

6.81

     

.64

     

.09

     

     

     

.73

     

(.49

)

   

     

(.49

)

   

     

     

.07

     

7.12

     

6.99

   

2010

   

5.70

     

.37

     

1.20

     

*

   

     

1.57

     

(.46

)

   

     

(.46

)

   

     

     

     

6.81

     

6.95

   

Floating Rate Income (JFR)

         

Year Ended 7/31:

 

2014

   

12.54

     

.75

     

.06

     

     

     

.81

     

(.76

)

   

     

(.76

)

   

*

   

     

*

   

12.59

     

11.72

   

2013

   

11.87

     

.90

     

.68

     

     

     

1.58

     

(.97

)

   

     

(.97

)

   

*

   

     

.06

     

12.54

     

12.72

   

2012

   

12.06

     

1.02

     

(.25

)

   

     

     

.77

     

(.96

)

   

     

(.96

)

   

     

     

*

   

11.87

     

11.78

   

2011

   

11.47

     

1.07

     

.19

     

     

     

1.26

     

(.69

)

   

     

(.69

)

   

     

     

.02

     

12.06

     

11.41

   

2010

   

9.76

     

.82

     

1.47

     

*

   

     

2.29

     

(.58

)

   

     

(.58

)

   

     

*

   

     

11.47

     

11.20

   

(a)  Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)  The amounts shown are based on common share equivalents. Represents distributions paid on Taxable Auctioned Rate Preferred shares and FundPreferred shares for Senior Income (NSL) and Floating Rate Income (JFR), respectively. During the fiscal year ended December 31, 2010, Senior Income (NSL) redeemed all of its Taxable Auctioned Preferred shares, at liquidation value and Floating Rate Income (JFR) redeemed all of its FundPreferred shares, at liquidation value.

(c)  Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

  Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

(d)  • Ratios do not reflect the effect of dividend payments to Taxable Auctioned Preferred and FundPreferred shareholders, where applicable.

  • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to Taxable Auctioned Preferred and FundPreferred shares, VRTP shares and/or borrowings, where applicable, each as described in Note 1 – General Information and Significant Accounting Policies and Note 9 – Borrowing Arrangements, respectively.

  • Each ratio includes the effect of all interest expense paid and other costs related to VRTP shares and/or borrowings, where applicable, as follows:

Ratios of Interest Expense to Average Net
Assets Applicable to Common Shares
     

Senior Income (NSL)

     

Year Ended 7/31:

 

2014

   

.72

%

 

2013

   

.47

   

2012

   

.47

   

2011

   

.49

   

2010

   

.86

   
Ratios of Interest Expense to Average Net
Assets Applicable to Common Shares
     

Floating Rate Income (JFR)

     

Year Ended 7/31:

 

2014

   

.71

%

 

2013

   

.48

   

2012

   

.51

   

2011

   

.52

   

2010

   

.78

   

Nuveen Investments
84



       

Ratios/Supplemental Data

 
   

Total Returns

      Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(d)
  Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(d)(e)
     
    Based
on
Common
Share
NAV(c)
  Based
on
Market
Value(c)
  Ending Net
Assets
Applicable to
Common
Shares (000)
 

Expenses

  Net
Investment
Income
(Loss)(f)
 

Expenses

  Net
Investment
Income
(Loss)(f)
  Portfolio
Turnover
Rate(h)
 

Senior Income (NSL)

 

Year Ended 7/31:

 

2014

   

6.78

%

   

(.29

)%

 

$

290,088

     

2.15

%

   

5.89

%

   

N/A

     

N/A

     

58

%

 

2013

   

13.89

     

10.23

     

288,025

     

1.74

     

7.32

     

N/A

     

N/A

     

76

   

2012

   

7.34

     

12.78

     

231,866

     

1.82

     

8.34

     

N/A

     

N/A

     

64

   

2011

   

12.01

     

7.72

     

227,986

     

1.78

     

8.99

     

N/A

     

N/A

     

100

   

2010

   

28.15

     

44.83

     

203,261

     

2.18

     

5.61

     

2.17

%

   

5.62

%

   

68

   

Floating Rate Income (JFR)

 

Year Ended 7/31:

 

2014

   

6.62

     

(1.84

)

   

694,584

     

2.05

     

5.94

     

N/A

     

N/A

     

52

   

2013

   

14.26

     

16.76

     

691,312

     

1.71

     

7.34

     

N/A

     

N/A

     

69

   

2012

   

6.91

     

12.43

     

572,118

     

1.79

     

8.72

     

1.72

     

8.80

     

57

   

2011

   

11.31

     

7.96

     

580,419

     

1.72

     

8.74

     

1.54

     

8.92

     

99

   

2010

   

23.85

     

41.48

     

542,456

     

2.03

     

7.14

     

1.74

     

7.42

     

51

   

(e)  After expense reimbursement from the Adviser, where applicable. As of October 31, 2009 and March 31, 2012, the Adviser is no longer reimbursing Senior Income (NSL) and Floating Rate Income (JFR), respectively, for any fees or expenses.

(f)  Each Ratio of Net Investment Income (Loss) includes the effect of the increase (decrease) of the net realizable value of the receivable for matured senior loans. The increase (decrease) to the Ratios of Net Investment Income (Loss) to Average Net Assets Applicable to Common Shares were as follows:

Increase (Decrease) to Ratios of
Net Investment Income (Loss) to Average Net
Assets Applicable to Common Shares(g)
     

Senior Income (NSL)

     

Year Ended 7/31:

 

2014

   

%

 

2013

   

   

2012

   

(.01

)

 

2011

   

.02

   

2010

   

.09

   
Increase (Decrease) to Ratios of
Net Investment Income (Loss) to Average Net
Assets Applicable to Common Shares(g)
     

Floating Rate Income (JFR)

     

Year Ended 7/31:

 

2014

   

%

 

2013

   

   

2012

   

.01

   

2011

   

.02

   

2010

   

.08

   

(g)  The Fund had no matured senior loans during the fiscal year ended July 31, 2014 and the fiscal year ended July 31, 2013.

(h)  Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.

*  Rounds to less than $.01 per share.

N/A  The Fund no longer has a contractual reimbursement agreement with the Adviser.

See accompanying notes to financial statements.

Nuveen Investments
85



Financial Highlights (continued)

Selected data for a common share outstanding throughout each period:

       
       

Investment Operations

 

Less Distributions

                     
    Beginning
Common
Share
NAV
  Net
Investment
Income
(Loss)(a)
  Net
Realized/
Unrealized
Gain (Loss)
  Distributions
from Net
Investment
Income to
Preferred
Share-
holders(b)
  Distributions
from
Accumulated
Net
Realized
Gains to
Preferred
Share-
holders(b)
 

Total

  From
Net
Investment
Income to
Common
Share-
holders
  From
Accum-
ulated
Net
Realized
Gains to
Common
Share-
holders
 

Total

  Offering
Costs
  Discount
from
Common
Shares
Repurchased
and Retired
  Premium
from
Common
Shares
Sold
through
Shelf
Offering
  Ending
Common
Share
NAV
  Ending
Market
Value
 

Floating Rate Income Opportunity (JRO)

         

Year Ended 7/31:

 

2014

 

$

12.55

   

$

.78

   

$

.14

   

$

   

$

   

$

.92

   

$

(.79

)

 

$

   

$

(.79

)

 

$

*

 

$

   

$

*

 

$

12.68

   

$

12.40

   

2013

   

11.84

     

.95

     

.68

     

     

     

1.63

     

(1.04

)

   

     

(1.04

)

   

(.01

)

   

     

.13

     

12.55

     

12.73

   

2012

   

11.96

     

1.13

     

(.26

)

   

     

     

.87

     

(1.01

)

   

     

(1.01

)

   

     

     

.02

     

11.84

     

12.09

   

2011

   

11.34

     

1.12

     

.22

     

     

     

1.34

     

(.79

)

   

     

(.79

)

   

     

     

.07

     

11.96

     

11.46

   

2010

   

9.54

     

1.01

     

1.50

     

*

   

     

2.51

     

(.71

)

   

     

(.71

)

   

     

*

   

     

11.34

     

11.64

   

Short Duration Credit Opportunities (JSD)

         

Year Ended 7/31:

 

2014

   

19.91

     

1.29

     

(.02

)

   

     

     

1.27

     

(1.37

)

   

(.33

)

   

(1.70

)

   

*

   

     

     

19.48

     

18.20

   

2013

   

19.49

     

1.61

     

.49

     

     

     

2.10

     

(1.61

)

   

(.07

)

   

(1.68

)

   

     

     

*

   

19.91

     

19.89

   

2012

   

19.08

     

1.56

     

.25

     

     

     

1.81

     

(1.40

)

   

     

(1.40

)

   

     

     

     

19.49

     

19.54

   
2011(g)    

19.10

     

.05

     

.08

     

     

     

.13

     

(.11

)

   

     

(.11

)

   

(.04

)

   

     

     

19.08

     

18.37

   

(a)  Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)  The amounts shown are based on common share equivalents. Represents distributions paid on FundPreferred shares for Floating Rate Income Opportunity (JRO). During the fiscal year ended December 31, 2010, Floating Rate Income Opportunity (JRO) redeemed all of its FundPreferred shares, at liquidation value.

(c)  Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

  Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

(d)  • Ratios do not reflect the effect of dividend payments to FundPreferred shareholders, where applicable.

  • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to FundPreferred shares, VRTP shares and/or borrowings, where applicable, each as described in Note 1 – General Information and Significant Accounting Policies and Note 9 – Borrowing Arrangements, respectively.

  • Each ratio includes the effect of all interest expense paid and other costs related to VRTP shares and/or borrowings, where applicable, as follows:

Ratios of Interest Expense to Average Net
Assets Applicable to Common Shares
     

Floating Rate Income Opportunity (JRO)

     

Year Ended 7/31:

 

2014

   

.71

%

 

2013

   

.46

   

2012

   

.47

   

2011

   

.49

   

2010

   

.86

   
Ratios of Interest Expense to Average Net
Assets Applicable to Common Shares
     

Short Duration Credit Opportunities (JSD)

     

Year Ended 7/31:

 

2014

   

.50

%

 

2013

   

.50

   

2012

   

.47

   
2011(g)    

   

Nuveen Investments
86



       

Ratios/Supplemental Data

 
   

Total Returns

      Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(d)
  Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(d)(e)
     
    Based
on
Common
Share
NAV(c)
  Based
on
Market
Value(c)
  Ending Net
Assets
Applicable to
Common
Shares (000)
 

Expenses

  Net
Investment
Income
(Loss)(f)
 

Expenses

  Net
Investment
Income
(Loss)(f)
  Portfolio
Turnover
Rate(i)
 

Floating Rate Income Opportunity (JRO)

 

Year Ended 7/31:

 

2014

   

7.54

%

   

3.91

%

 

$

487,784

     

2.07

%

   

6.16

%

   

N/A

     

N/A

     

55

%

 

2013

   

15.27

     

14.42

     

482,204

     

1.71

     

7.73

     

N/A

     

N/A

     

72

   

2012

   

8.03

     

15.20

     

369,939

     

1.74

     

9.75

     

1.65

%

   

9.85

%

   

85

   

2011

   

12.77

     

5.20

     

364,883

     

1.75

     

9.19

     

1.56

     

9.38

     

101

   

2010

   

26.66

     

49.00

     

322,136

     

2.14

     

8.95

     

1.84

     

9.25

     

58

   

Short Duration Credit Opportunities (JSD)

 

Year Ended 7/31:

 

2014

   

6.59

     

.16

     

196,613

     

1.88

     

6.52

     

N/A

     

N/A

     

45

   

2013

   

11.17

     

10.77

     

201,031

     

1.80

     

8.12

     

N/A

     

N/A

     

82

   

2012

   

9.96

     

14.77

     

195,165

     

1.75

     

8.25

     

N/A

     

N/A

     

62

   
2011(g)    

.49

     

(7.58

)

   

190,868

     

1.16

**

   

1.52

**

   

N/A

     

N/A

     

5

   

(e)  After expense reimbursement from the Adviser, where applicable. As of July 31, 2012, the Adviser is no longer reimbursing Floating Rate Income Opportunity (JRO) for any fees or expenses.

(f)  Each Ratio of Net Investment Income (Loss) includes the effect of the increase (decrease) of the net realizable value of the receivable for matured senior loans. The increase (decrease) to the Ratios of Net Investment Income (Loss) to Average Net Assets Applicable to Common Shares were as follows:

Increase (Decrease) to Ratios of
Net Investment Income (Loss) to Average Net
Assets Applicable to Common Shares(h)
     

Floating Rate Income Opportunity (JRO)

     

Year Ended 7/31:

 

2014

   

%

 

2013

   

   

2012

   

.01

   

2011

   

.02

   

2010

   

.09

   
Increase (Decrease) to Ratios of
Net Investment Income (Loss) to Average Net
Assets Applicable to Common Shares(h)
     

Short Duration Credit Opportunities (JSD)

     

Year Ended 7/31:

 

2014

   

%

 

2013

   

   

2012

   

   
2011(g)    

   

(g)  For the period May 25, 2011 (commencement of operations) through July 31, 2011.

(h)  Floating Rate Income Opportunity (JRO) had no matured senior loans during the fiscal year ended July 31, 2014, and the fiscal year ended July 31, 2013. Short Duration Credit Opportunities (JSD) has not had any matured senior loans since its commencement of operations on May 25, 2011.

(i)  Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.

*  Rounds to less than $.01 per share.

**  Annualized.

N/A  The Fund never had, or no longer has, a contractual reimbursement agreement with the Adviser.

See accompanying notes to financial statements.

Nuveen Investments
87



Financial Highlights (continued)

Selected data for a common share outstanding throughout each period:

       
       

Investment Operations

 

Less Distributions

             
    Beginning
Common
Share
NAV
  Net
Investment
Income
(Loss)(a)
  Net
Realized/
Unrealized
Gain (Loss)
  Distributions
from Net
Investment
Income to
Preferred
Shareholders(b)
  Distributions
from
Accumulated
Net Realized
Gains to
Preferred
Shareholders(b)
 

Total

  From Net
Investment
Income to
Common
Share-
holders
  From
Accum-
ulated
Net
Realized
Gains to
Common
Share-
holders
  Return of
Capital to
Common
Share-
holders
 

Total

  Discount
from
Common
Shares
Repur-
chased
and
Retired
  Ending
Common
Share
NAV
  Ending
Market
Value
 

Credit Strategies Income (JQC)

         

Year Ended 7/31:

 

2014

 

$

10.13

   

$

.60

   

$

.16

   

$

   

$

   

$

.76

   

$

(.64

)

 

$

   

$

   

$

(.64

)

 

$

*

 

$

10.25

   

$

9.05

   
2013(k)    

9.88

     

.42

     

.29

     

     

     

.71

     

(.46

)

   

     

     

(.46

)

   

     

10.13

     

10.03

   

Year Ended 12/31:

 

2012

   

9.18

     

.78

     

.72

     

     

     

1.50

     

(.80

)

   

     

     

(.80

)

   

     

9.88

     

9.65

   

2011

   

10.13

     

.55

     

(.72

)

   

     

     

(.17

)

   

(.79

)

   

     

     

(.79

)

   

.01

     

9.18

     

8.05

   

2010

   

9.00

     

.53

     

1.29

     

     

     

1.82

     

(.60

)

   

     

(.10

)

   

(.70

)

   

.01

     

10.13

     

8.80

   

2009

   

6.04

     

.59

     

3.01

     

*

   

     

3.60

     

(.65

)

   

     

*

   

(.65

)

   

.01

     

9.00

     

7.69

   

(a)  Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)  The amounts shown are based on common share equivalents. Represents distributions paid on FundPreferred shares. During the fiscal year ended December 31, 2009, the Fund redeemed all of its FundPreferred shares, at liquidation value.

(c)  Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

  Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

(d)  After expense reimbursement from the Adviser, where applicable. As of June 30, 2011, the Adviser is no longer reimbursing the Fund for any fees or expenses.

(e)  • Ratios do not reflect the effect of dividend payments to FundPreferred shareholders, where applicable.

  • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to FundPreferred shares and/or borrowings, where applicable,as described in Note 9 – Borrowing Arrangements.

  • Each ratio includes the effect of dividends expense on securities sold short and all interest expense and other costs related to borrowings, where applicable, as follows:

Credit Strategies Income (JQC)

  Ratios of Dividends Expense
on Securities Sold Short
to Average Net Assets Applicable
to Common Shares(j)
  Ratios of Borrowings
Interest Expense
to Average Net Assets Applicable
to Common Shares
 

Year Ended 7/31:

 

2014

   

%

   

.52

%

 
2013(k)    

     

.55

***

 

Year Ended 12/31:

 

2012

   

**

   

.58

   

2011

   

**

   

.43

   

2010

   

**

   

.40

   

2009

   

**

   

.46

   

Nuveen Investments
88



       

Ratios/Supplemental Data

 
   

Total Returns

      Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(e)
  Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(d)(e)
     
    Based
on
Common
Share
NAV(c)
  Based
on
Market
Value(c)
  Ending
Net
Assets
Applicable
to Common
Shares (000)
 

Expenses

  Net
Investment
Income (Loss)(g)
 

Expenses

  Net
Investment
Income (Loss)(g)
  Portfolio
Turnover
Rate(i)
 

Credit Strategies Income (JQC)

 

Year Ended 7/31:

 

2014

   

7.74

%

   

(3.44

)%

 

$

1,396,303

     

1.77

%(f)

   

5.84

%(f)

   

N/A

     

N/A

     

65

%

 
2013(k)    

7.32

     

8.80

     

1,380,261

     

1.77

***

   

7.22

***

   

N/A

     

N/A

     

44

   

Year Ended 12/31:

 

2012

   

16.80

     

30.55

     

1,345,657

     

1.86

     

8.07

     

N/A

     

N/A

     

127

   

2011

   

(1.70

)

   

.24

     

1,250,245

     

1.70

     

5.44

     

1.65

%

   

5.49

%

   

37

   

2010

   

21.02

     

24.26

     

1,388,235

     

1.64

     

5.41

     

1.48

     

5.57

     

48

   

2009

   

63.01

     

76.23

     

1,242,799

     

1.75

     

8.01

     

1.48

     

8.27

     

55

   

(f)  The expenses and net investment income (loss) ratios to average net assets applicable to common shares do not reflect the voluntary expense reimbursement from Adviser as described in Note 1 – General Information and Significant Accounting Policies, Common Shares Equity Shelf Program and Offering Costs. The expenses and net investment income (loss) ratios to average net assets applicable to common shares including this expense reimbursement from Adviser are as follows:

Credit Strategies Income (JQC)  

Expenses

  Net Investment
Income (Loss)
 

Year Ended 7/31:

 

2014

   

1.76

%

   

5.85

%

 

(g)  Each Ratio of Net Investment Income (Loss) includes the effect of the increase (decrease) of the net realizable value of the receivable for matured senior loans as described in Note 3 – Portfolio Securities and Investments in Derivatives, Matured Senior Loans. The increase (decrease) to the Ratios of Net Investment Income (Loss) to Average Net Assets Applicable to Common Shares were as follows:

Increase (Decrease) to Ratios of
Net Investment Income (Loss) to Average Net
Assets Applicable to Common Shares(h)
     

Year Ended 7/31:

 

2014

   

%

 
2013(k)    

   

Year Ended 12/31:

 

2012

   

**

 

2011

   

**

 

2010

   

**

 

2009

   

   

(h)  The Fund had no matured senior loans during the fiscal year ended July 31, 2014, the seven months ended July 31,2013 and prior to the fiscal year ended July 31, 2010.

(i)  Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.

(j)  Effective for periods beginning after December 31, 2012, the Fund no longer makes short sales of securities.

(k)  For the seven months ended July 31, 2013.

*  Rounds to less than $.01 per share.

**  Rounds to less than .01%.

***  Annualized.

N/A  Fund no longer has a contractual reimbursement agreement with the Adviser.

See accompanying notes to financial statements.

Nuveen Investments
89



Financial Highlights (continued)

    Borrowings
at the End of the Period
  VRTP Shares
at the End of Period
  Borrowings and
VRTP Shares
at the End of Period
 
    Aggregate
Amount
Outstanding
(000)
  Asset
Coverage
Per $1,000
Share
  Aggregate
Amount
Outstanding
(000)
  Asset
Coverage
Per $100,000
Share
  Asset
Coverage
Per $1
Liquidation
Preference
 

Senior Income (NSL)

     

Year Ended 7/31:

 

2014

 

$

112,000

   

$

2,706

   

$

58,000

   

$

270,640

   

$

2.71

   

2013

   

123,000

     

3,342

     

     

     

   

2012

   

100,000

     

3,319

     

     

     

   

2011

   

73,950

     

4,083

     

     

     

   

2010

   

73,950

     

3,749

     

     

     

   

Floating Rate Income (JFR)

     

Year Ended 7/31:

 

2014

   

269,000

     

2,702

     

139,000

     

270,241

     

2.70

   

2013

   

295,200

     

3,342

     

     

     

   

2012

   

249,200

     

3,296

     

     

     

   

2011

   

197,740

     

3,935

     

     

     

   

2010

   

197,740

     

3,743

     

     

     

   

Floating Rate Income Opportunity (JRO)

     

Year Ended 7/31:

 

2014

   

188,000

     

2,706

     

98,000

     

270,554

     

2.71

   

2013

   

201,900

     

3,388

     

     

     

   

2012

   

159,900

     

3,314

     

     

     

   

2011

   

117,270

     

4,111

     

     

     

   

2010

   

117,270

     

3,747

     

     

     

   

Short Duration Credit Opportunities (JSD)

     

Year Ended 7/31:

 

2014

   

85,000

     

3,313

     

     

     

   

2013

   

85,000

     

3,365

     

     

     

   

2012

   

85,000

     

3,296

     

     

     

   
2011(a)    

     

     

     

     

   

Credit Strategies Income Fund (JQC)

     

Year Ended 7/31:

 

2014

   

606,000

     

3,304

     

     

     

   
2013(b)    

561,000

     

3,460

     

     

     

   

Year Ended 12/31:

 

2012

   

561,000

     

3,399

     

     

     

   

2011

   

517,000

     

3,418

     

     

     

   

2010

   

400,000

     

4,471

     

     

     

   

2009

   

400,000

     

4,107

     

     

     

   

(a)  For the period May 25, 2011 (commencement of operations) through July 31, 2011.

(b)  For the seven months ended July 31, 2013.

See accompanying notes to financial statements.

Nuveen Investments
90




Notes to

Financial Statements

1. General Information and Significant Accounting Policies

General Information

Fund Information

The funds covered in this report and their corresponding New York Stock Exchange ("NYSE") symbols are as follows (each a "Fund" and collectively, the "Funds"):

• Nuveen Senior Income Fund (NSL) ("Senior Income (NSL)")

• Nuveen Floating Rate Income Fund (JFR) ("Floating Rate Income (JFR)")

• Nuveen Floating Rate Income Opportunity Fund (JRO) ("Floating Rate Income Opportunity (JRO)")

• Nuveen Short Duration Credit Opportunities Fund (JSD) ("Short Duration Credit Opportunities (JSD)")

• Nuveen Credit Strategies Income Fund (JQC) ("Credit Strategies Income (JQC)")

The Funds are registered under the Investment Company Act of 1940, as amended, as diversified closed-end registered investment companies. Senior Income (NSL), Floating Rate Income (JFR), Floating Rate Income Opportunity (JRO), Short Duration Credit Opportunities (JSD) and Credit Strategies Income (JQC) were organized as Massachusetts business trusts on August 13, 1999, January 15, 2004, April 27, 2004, January 3, 2011 and May 17, 2003, respectively.

Investment Adviser

The Funds' investment adviser is Nuveen Fund Advisors, LLC (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). The Adviser is responsible for each Fund's overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Symphony Asset Management, LLC ("Symphony"), an affiliate of Nuveen, under which Symphony manages the investment portfolios of the Funds. The Adviser is responsible for overseeing the Funds' investments in interest rate and credit default swap contracts.

Agreement and Plan of Merger

On April 14, 2014, TIAA-CREF, a national financial services organization, announced that it had entered into an agreement (the "Purchase Agreement") to acquire Nuveen, the parent company of the Adviser. The transaction is expected to be completed by the end of the year, subject to customary closing conditions, including obtaining necessary Nuveen fund and client consents sufficient to satisfy the terms of the Purchase Agreement and obtaining customary regulatory approvals. There can be no assurance that the transaction described above will be consummated as contemplated or that necessary conditions will be satisfied.

The consummation of the transaction will be deemed to be an "assignment" (as defined in the Investment Company Act of 1940) of the investment management agreements between the Nuveen funds and the Adviser and the investment sub-advisory agreements between the Adviser and each Nuveen fund's sub-adviser or sub-advisers, and will result in automatic termination of each agreement. It is anticipated that the Board of Directors/ Trustees of the Nuveen funds will consider a new investment management agreement with the Adviser and new investment sub-advisory agreements with each sub-adviser.

The transaction is not expected to result in any change in the portfolio management of the Funds or in the Funds' investment objectives or policies.

Investment Objectives and Principal Investment Strategies

Senior Income's (NSL) investment objective is to achieve a high level of current income, consistent with capital preservation. The Fund invests at least 80% of its managed assets (as defined in Note 7 – Management Fees and Other Transactions with Affiliates) in adjustable rate senior secured loans. The Fund may invest up to 20% of its managed assets in U.S. dollar denominated senior loans of non-U.S. borrowers, senior loans that are not secured, other debt securities and equity securities and warrants acquired in connection with the Fund's investment in senior loans.

Floating Rate Income's (JFR) investment objective is to achieve a high level of current income. The Fund invests at least 80% of its managed assets in adjustable rate loans, primarily secured senior loans. As part of the 80% requirement, the Fund also may invest in unsecured senior loans and secured and unsecured subordinated loans. The Fund invests at least 65% of its managed assets in adjustable rate senior loans that are secured by specific collateral. The Fund may invest a substantial portion of its managed assets in senior loans and other debt instruments that are, at the time of investment, rated below investment grade or are unrated but judged to be of comparable quality by Symphony.

Nuveen Investments
91



Notes to Financial Statements (continued)

Floating Rate Income Opportunity's (JRO) investment objective is to achieve a high level of current income. The Fund invests at least 80% of its managed assets in adjustable rate loans, primarily secured senior loans. As part of the 80% requirement, the Fund also may invest in unsecured senior loans and secured and unsecured subordinated loans. The Fund invests at least 65% of its managed assets in adjustable rate senior loans that are secured by specific collateral.

Short Duration Credit Opportunities' (JSD) investment objective is to provide current income and the potential for capital appreciation. Under normal market circumstances the Fund will invest at least 70% of its managed assets in adjustable rate corporate debt instruments, including senior secured loans, second lien loans and other adjustable rate corporate debt instruments. The Fund may make limited tactical investments in high yield debt and other debt instruments of up to 30% of its managed assets. No more than 30% of the Fund's managed assets may be invested in debt instruments that are, at the time of investment, rated CCC+ or Caa or below by any Nationally Recognized Statistical Rating Organization or that are unrated but judged by Symphony, to be of comparable quality. The Fund may enter into tactical short positions consisting primarily of high yield debt, either directly or through the use of derivatives, including credit default swaps, creating investment exposure or hedging existing long (positive) investment exposure in a notional amount up to 20% of its managed assets. The Fund may invest up to 20% of its managed assets in debt instruments of non-U.S. issuers that are U.S. dollar or non-U.S. dollar denominated. The Fund's investments in debt instruments of non-U.S. issuers may include debt instruments of issuers located, or conducting their business, in emerging markets countries.

Credit Strategies Income's (JQC) investment objectives are high current income and total return. The Fund meets its investment objectives by investing approximately 70% of its managed assets in senior secured and second lien loans, and up to 30% of its managed assets across the capital structure of companies (including equity securities) with a primary emphasis on high yield bonds, convertible securities and other forms of income-producing securities.

Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").

Investment Transactions

Investment transactions are recorded on a trade date basis. Trade date for senior and subordinated loans purchased in the "primary market" is considered the date on which the loan allocations are determined. Trade date for senior and subordinated loans purchased in the "secondary market" is the date on which the transaction is entered into. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to earmark securities in the Funds' portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of July 31, 2014, the Funds' outstanding when-issued/delayed delivery purchase commitments were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Outstanding when-issued/delayed delivery purchase commitments

 

$

13,853,999

   

$

31,241,966

   

$

24,217,377

   

$

9,596,879

   

$

73,077,252

   

Investment Income

Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Fee income consists primarily of amendment fees. Amendment fees are earned as compensation for evaluating and accepting changes to an original senior loan agreement and are recognized when received. Fee income and amendment fees, if any, are recognized as "Fees income" on the Statement of Operations.

Professional Fees

Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as "Legal fee refund" on the Statement of Operations.

Dividends and Distributions to Common Shareholders

Dividends to common shareholders are declared monthly. Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.

Distributions to common shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal corporate income tax regulations, which may differ from U.S. GAAP.

Nuveen Investments
92



Preferred Shares

The Funds are authorized to issue preferred shares. During prior fiscal periods, Senior Income (NSL) redeemed all of its Taxable Auctioned Preferred shares, at liquidation value and Floating Rate Income (JFR), Floating Rate Income Opportunity (JRO) and Credit Strategies Income (JQC) redeemed all of their outstanding FundPreferred shares, at liquidation value. As of July 31, 2014, Short Duration Credit Opportunities (JSD) has not issued any preferred shares.

Variable Rate Term Preferred Shares

The following Funds have issued and outstanding Variable Rate Term Preferred ("VRTP") Shares, with a $100,000 liquidation value per share. The Funds issued their VRTP Shares in privately negotiated offerings, on December 30, 2013, which were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

As of July 31, 2014, VRTP Shares outstanding, at liquidation value, for each Fund was as follows:

Fund

 

Series

  Shares
Outstanding
  Shares
Outstanding
at $100,000 Per Share
Liquidation Value
 

Senior Income (NSL)

 

C-4

   

580

   

$

58,000,000

   

Floating Rate Income (JFR)

 

C-4

   

1,390

   

$

139,000,000

   

Floating Rate Income Opportunity (JRO)

 

C-4

   

980

   

$

98,000,000

   

Each Fund is obligated to redeem its VRTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed or repurchased by the Fund. VRTP Shares are subject to optional and mandatory redemption in certain circumstances. The VRTP Shares are subject to redemption at the option of each Fund, subject to payment of premium for approximately one year following the date of issuance ("Premium Expiration Date"), and at par thereafter. The Term Redemption Date and Premium Expiration Date for the Funds' VRTP Shares are as follows:

Fund

 

Series

  Term
Redemption Date
  Premium
Expiration Date
 

Senior Income (NSL)

 

C-4

 

February 1, 2017

 

January 31, 2015

 

Floating Rate Income (JFR)

 

C-4

 

February 1, 2017

 

January 31, 2015

 

Floating Rate Income Opportunity (JRO)

 

C-4

 

February 1, 2017

 

January 31, 2015

 

The average liquidation value of VRTP Shares outstanding and annualized dividend rate for each Fund for the period December 30, 2013 (first issuance of shares) through July 31, 2014, were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
 

Average liquidation value of VRTP Shares outstanding

 

$

58,000,000

   

$

139,000,000

   

$

98,000,000

   

Annualized dividend rate

   

1.71

%

   

1.71

%

   

1.71

%

 

VRTP Shares generally do not trade, and market quotations are generally not available. VRTP Shares are short-term or short/intermediate-term instruments that pay a variable dividend rate tied to a short-term index, plus an additional fixed "spread" amount established at the time of issuance. The fair value of VRTP Shares is expected to be approximately their liquidation (par) value so long as the fixed "spread" on the VRTP Shares remains roughly in line with the "spread" rates being demanded by investors on instruments having similar terms in the current market environment. In present market conditions, the Funds' Adviser has determined that the fair value of VRTP Shares is their liquidation value, but their fair value could vary if market conditions change materially. For financial reporting purposes only, the liquidation value of VRTP Shares is recorded as a liability and recognized as "Variable Rate Term Preferred ("VRTP") Shares, at liquidation value" on the Statement of Assets and Liabilities.

Dividends on the VRTP Shares (which are treated as interest payments for financial reporting purposes only) are set monthly. Unpaid dividends on VRTP Shares are recognized as a component of "Interest payable" on the Statement of Assets and Liabilities, when applicable. Dividends paid on VRTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.

Costs incurred by each Fund in connection with its offering of VRTP Shares, which were recorded as a deferred charge and are amortized over the life of the shares, are recognized as components of "Deferred offering costs" on the Statement of Assets and Liabilities and "Interest expense and amortization of offering costs" on the Statement of Operations.

Nuveen Investments
93



Notes to Financial Statements (continued)

Common Shares Equity Shelf Programs and Offering Costs

The Funds have each filed registration statements with the Securities and Exchange Commission ("SEC") authorizing the Funds to issue additional common shares through an equity shelf program ("Shelf Offering").

Under the Shelf Offering, each Fund, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offering methods at a net price at or above the Fund's net asset value ("NAV") per common share.

Authorized common shares, common shares issued and offering proceeds, net of offering costs under each Fund's Shelf Offering during the fiscal year ended July 31, 2014 and fiscal year ended July 31, 2013, were as follows:

    Senior Income
(NSL)
  Floating Rate
Income
(JFR)
  Floating Rate Income
Opportunity
(JRO)
 
    Year Ended
7/31/14
  Year Ended
7/31/13
  Year Ended
7/31/14
  Year Ended
7/31/13
  Year Ended
7/31/14
  Year Ended
7/31/13
 

Authorized common shares

   

12,000,000

     

12,000,000

     

12,900,000

     

17,600,000

     

11,600,000

     

11,600,000

   

Common shares issued

   

     

5,798,036

     

22,610

     

6,888,559

     

43,186

     

7,155,904

   

Offering proceeds, net of offering costs

 

$

   

$

44,273,857

   

$

284,185

   

$

87,398,181

   

$

542,095

   

$

91,655,153

   

 

    Short Duration
Credit Opportunities
(JSD)
  Credit Strategies
Income
(JQC)
 
    Year Ended
7/31/14
  Year Ended
7/31/13
  Year Ended
7/31/14
 

Authorized common shares

 

$

1,000,000

   

$

1,000,000

   

$

13,600,000

*

 

Common shares issued

   

     

36,711

     

   

Offering proceeds, net of offering costs

 

$

   

$

731,375

   

$

   

*  Shelf Offering declared effective by the SEC during the current reporting period.

As of November 30, 2013, Senior Income's (NSL), Floating Rate Income's (JFR) and Floating Rate Income (JRO) shelf offering registration statements are no longer effective. Therefore, the Funds may not issue additional common shares under their equity shelf programs until a new registration statement is filed and declared effective by the SEC.

Costs incurred by the Funds in connection with their Shelf Offerings are recorded as a deferred charge and recognized as a component of "Deferred offering costs" on the Statement of Assets and Liabilities. The deferred asset is reduced during the one-year period that additional shares are sold by reducing the proceeds from such sales and is recognized as a component of "Proceeds from shelf offering, net of offering costs and adjustments" on the Statement of Changes in Net Assets. At the end of the one-year life of the Shelf Offering period, any remaining deferred charges will be expensed accordingly and recognized as "Shelf offering expenses" on the Statement of Operations. Any additional costs the Funds may incur in connection with their Shelf Offerings are expensed as incurred and recognized as a component of "Proceeds from shelf offering, net of offering costs and adjustments" on the Statement of Changes in Net Assets.

Since the shelf offering program became effective, Credit Strategies Income (JQC) had not issued additional common shares. As a result, during the fiscal year ended July 31, 2014, the Adviser reimbursed the Fund for half of the costs incurred in connection with the Shelf Offering, which is recognized as "Expense reimbursement" on the Statement of Operations.

During the fiscal year ended July 31, 2014, Nuveen Securities, LLC, the Funds' distributor and a wholly-owned subsidiary of Nuveen, received commissions of $575 and $1,098, related to the sale of common shares as a result of Floating Rate Income (JFR) and Floating Rate Income Opportunity's (JRO) Shelf Offering, respectively.

Indemnifications

Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

Netting Agreements

In the ordinary course of business, the Funds 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 each Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.

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94



The Funds' investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to common shares from operations during the reporting period. Actual results may differ from those estimates.

2. Investment Valuation and Fair Value Measurements

The fair valuation input levels as described below are for fair value measurement purposes.

Investment Valuation

Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market ("NASDAQ") are valued at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts ("ADR") held by the Funds that trade in the United States are valued based on the last traded price, official closing price or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the NYSE, which may represent a transfer from a Level 1 to a Level 2 security.

Prices of fixed-income securities are provided by a pricing service approved by the Nuveen funds' Board of Directors/Trustees. The pricing service establishes a security's fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.

Prices of swap contracts are also provided by a pricing service approved by the Nuveen funds' Board of Directors/Trustees using the same methods as described above, and are generally classified as Level 2.

Like most fixed-income securities, the senior and subordinated loans in which the Funds invest are not listed on an organized exchange. The secondary market of such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior and subordinated loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan. These securities are generally classified as Level 2.

Investments in investment companies are valued at their respective NAV on the valuation date and are generally classified as Level 1.

Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.

Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds' shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds' NAV is determined, or if under the Funds' procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Nuveen funds' Board of Directors/Trustees. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.

Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Nuveen funds' Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a fund's NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security's fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered

Nuveen Investments
95



Notes to Financial Statements (continued)

in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Nuveen funds' Board of Directors/Trustees or its designee.

Fair Value Measurements

Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.

Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Prices are determined using significant unobservable inputs (including management's assumptions in determining the fair value of investments).

The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of the end of the reporting period:

Senior Income (NSL)

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Long-Term Investments*:

 

Variable Rate Senior Loan Interests

 

$

   

$

369,296,785

   

$

   

$

369,296,785

   

Common Stocks

   

1,634,690

     

5,866,143

**

   

***

   

7,500,833

   

Convertible Bonds

   

     

860,625

     

     

860,625

   

Corporate Bonds

   

     

57,297,363

     

5

     

57,297,368

   

Short-Term Investments:

 

Repurchase Agreements

   

     

22,293,481

     

     

22,293,481

   

Investments in Derivatives:

 

Interest Rate Swaps****

   

     

(550,340

)

   

     

(550,340

)

 

Total

 

$

1,634,690

   

$

455,064,057

   

$

5

   

$

456,698,752

   

Floating Rate Income (JFR)

 

Long-Term Investments*:

 

Variable Rate Senior Loan Interests

 

$

   

$

839,275,049

   

$

   

$

839,275,049

   

Common Stocks

   

5,044,057

     

14,560,639

**

   

***

   

19,604,696

   

Convertible Bonds

   

     

1,875,625

     

     

1,875,625

   

Corporate Bonds

   

     

129,204,491

     

     

129,204,491

   

Asset-Backed Securities

   

     

38,439,536

     

     

38,439,536

   

Investment Companies

   

11,867,732

     

     

     

11,867,732

   

Short-Term Investments:

 

Repurchase Agreements

   

     

65,639,189

     

     

65,639,189

   

Investments in Derivatives:

 

Interest Rate Swaps****

   

     

(1,471,592

)

   

     

(1,471,592

)

 

Total

 

$

16,911,789

   

$

1,087,522,937

   

$

***

 

$

1,104,434,726

   

Floating Rate Income Opportunity (JRO)

 

Long-Term Investments*:

 

Variable Rate Senior Loan Interests

 

$

   

$

594,917,609

   

$

   

$

594,917,609

   

Common Stocks

   

3,965,090

     

13,181,105

**

   

***

   

17,146,195

   

Convertible Bonds

   

     

1,571,875

     

     

1,571,875

   

Corporate Bonds

   

     

103,463,151

     

     

103,463,151

   

Asset-Backed Securities

   

     

25,902,538

     

     

25,902,538

   

Short-Term Investments:

 

Repurchase Agreements

   

     

32,660,097

     

     

32,660,097

   

Investments in Derivatives:

 

Interest Rate Swaps****

   

     

(872,730

)

   

     

(872,730

)

 

Total

 

$

3,965,090

   

$

770,823,645

   

$

***

 

$

774,788,735

   

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96



Short Duration Credit Opportunities (JSD)

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Long-Term Investments*:

 

Variable Rate Senior Loan Interests

 

$

   

$

226,380,673

   

$

   

$

226,380,673

   

Common Stocks

   

     

1,371,340

**

   

     

1,371,340

   

Corporate Bonds

   

     

37,726,006

     

     

37,726,006

   

Short-Term Investments:

 

Repurchase Agreements

   

     

20,820,856

     

     

20,820,856

   

Investments in Derivatives:

 

Interest Rate Swaps****

   

     

(298,622

)

   

     

(298,622

)

 

Credit Default Swaps****

   

     

45,485

     

     

45,485

   

Total

 

$

   

$

286,045,738

   

$

   

$

286,045,738

   

Credit Strategies Income (JQC)

 

Long-Term Investments*:

 

Variable Rate Senior Loan Interests

 

$

   

$

1,501,389,670

   

$

   

$

1,501,389,670

   

Common Stocks

   

85,670,128

     

13,914,642

**

   

***

   

99,584,770

   

Convertible Bonds

   

     

10,081,250

     

     

10,081,250

   

Corporate Bonds

   

     

300,010,055

     

     

300,010,055

   

Structured Notes

   

10,203,600

     

16,940,948

**

   

     

27,144,548

   

Short-Term Investments:

 

Repurchase Agreements

   

     

108,776,110

     

     

108,776,110

   

Investments in Derivatives:

 

Interest Rate Swaps****

   

     

(2,744,568

)

   

     

(2,744,568

)

 

Total

 

$

95,873,728

   

$

1,948,368,107

   

$

***

 

$

2,044,241,835

   

*  Refer to the Fund's Portfolio of Investments for industry classifications.

**  Refer to the Fund's Portfolio of Investments for breakdown of these securities classified as Level 2.

***  Value equals zero as of the end of the reporting period.

****  Represents net unrealized appreciation (depreciation) as reported in the Fund's Portfolio of Investments.

The Nuveen funds' Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds' pricing policies and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser's dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:

(i)  If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities.

(ii)  If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis.

The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument's current value.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.

Nuveen Investments
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Notes to Financial Statements (continued)

3. Portfolio Securities and Investments in Derivatives

Portfolio Securities

Foreign Currency Transactions

To the extent that Short Duration Credit Opportunities (JSD) and Credit Strategies Income (JQC) invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds' investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.

The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received.

The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, forward foreign currency exchange contracts, options written and swap contracts are recognized as a component of "Net realized gain (loss) from investments and foreign currency" on the 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 other assets and liabilities on investments are recognized as a component of "Change in unrealized appreciation (depreciation) of investments and foreign currency" on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with forward foreign currency exchange contracts, options written and swaps are recognized as a component of "Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts, options written and swaps", respectively, on the Statement of Operations, when applicable.

Repurchase Agreements

In connection with transactions in repurchase agreements, it is each 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 Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.

Fund

 

Counterparty

  Short-term
Investments, at Value
  Collateral
Pledged (From)
Counterparty*
  Net
Exposure
 

Senior Income (NSL)

 

Fixed Income Clearing Corporation

 

$

22,293,481

   

$

(22,293,481

)

 

$

   

Floating Rate Income (JFR)

 

Fixed Income Clearing Corporation

   

65,639,189

     

(65,639,189

)

   

   

Floating Rate Income Opportunity (JRO)

 

Fixed Income Clearing Corporation

   

32,660,097

     

(32,660,097

)

   

   

Short Duration Credit Opportunities (JSD)

 

Fixed Income Clearing Corporation

   

20,820,856

     

(20,820,856

)

   

   

Credit Strategies Income (JQC)

 

Fixed Income Clearing Corporation

   

108,776,110

     

(108,776,110

)

   

   

*  As of July 31, 2014, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund's 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.

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Investments in Derivatives

Each Fund is authorized to invest in certain derivative instruments, such as futures, options and swap contracts. The Funds limit their investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.

Swap Contracts

Each Fund is authorized to enter into swap contracts consistent with its investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).

Interest Rate Swap Contracts

Interest rate swap contracts involve a Fund's agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment that is intended to approximate the Fund's variable rate payment obligation on any variable rate borrowing. Forward interest rate swap contracts involve the Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty receiving or paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The payment obligation is based on the notional amount of the swap contract. Swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that a Fund is to receive. Swap contracts are valued daily. Upon entering into an interest rate swap (and beginning on the effective date for a forward interest rate swap), a Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on a daily basis, and recognizes the daily change in the fair value of the Fund's contractual rights and obligations under the contracts. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of "Unrealized appreciation or depreciation on interest rate swaps (, net)" with the change during the fiscal period recognized on the Statement of Operations as a component of "Change in net unrealized appreciation (depreciation) of swaps." Income received or paid by the Funds is recognized as a component of "Net realized gain (loss) from swaps" on the Statement of Operations, in addition to the net realized gains or losses recognized upon the termination of a swap contract and are equal to the difference between the Funds' basis in the swap and the proceeds from (or cost of) the closing transaction. Payments received or made at the beginning of the measurement period are recognized as a component of "Interest rate swap premiums paid and/or received" on the Statement of Assets and Liabilities, when applicable. For tax purposes, periodic payments are treated as ordinary income or expense.

During the fiscal year ended July 31, 2014, the Funds continued to use interest rate swap contracts to partially fix the interest cost of leverage, which each Fund employs through the use of bank borrowings and VRTP Shares for Senior Income (NSL), Floating Rate Income (JFR) and Floating Rate Income Opportunity (JRO).

The average notional amount of interest rate swap contracts outstanding during the fiscal year ended July 31, 2014, was as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Average notional amount of interest rate swap contracts outstanding*

 

$

29,580,000

   

$

79,096,000

   

$

46,908,000

   

$

52,500,000

   

$

164,920,000

   

*  The average notional amount is calculated based on the outstanding notional amount at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

Credit Default Swaps

A Fund may enter into a credit default swap contract to seek to maintain a total return on a particular investment or portion of its portfolio, or to take an active long or short position with respect to the likelihood of a particular issuer's default. Credit default swap contracts involve one party making a stream of payments to another party in exchange for the right to receive a specified return if/when there is a credit event by a third party. Generally, a credit event means bankruptcy, failure to pay or restructuring. The specific credit events applicable for each credit default swap are stated in the terms of the particular swap agreement. As a purchaser of a credit default swap contract, the Fund pays to the counterparty a periodic interest fee based on the notional amount of the credit default swap. This interest fee is accrued daily and recognized with the daily change in the market value of the contract as a component of "Unrealized appreciation or depreciation on credit default swaps (, net)" on the Statement of Assets and Liabilities and is recorded as a realized loss upon payment. Upon occurrence of a specific credit event with respect to the underlying referenced entity, the Fund is obligated to deliver that security, or an equivalent amount of cash, to the counterparty in exchange for receipt of the notional amount from the counterparty. The difference between the value of the security delivered and the notional amount received is recorded as a realized gain or loss. Payments received or made at the

Nuveen Investments
99



Notes to Financial Statements (continued)

beginning of the measurement period are recognized as a component of "Credit default swaps premiums paid and/or received" on the Statement of Assets and Liabilities, when applicable. As a seller of a credit default swap contract, the Fund generally receives from the counterparty a periodic interest fee based on the notional amount of the credit default swap. This interest fee is accrued daily as a component of unrealized appreciation or depreciation and is recorded as a realized gain or loss upon payment. Upon occurrence of a specific credit event with respect to the underlying referenced entity, the Fund will either receive that security, or an equivalent amount of cash, from the counterparty in exchange for payment of the notional amount to the counterparty, or pay a net settlement amount of the credit default swap contract less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The difference between the value of the security received and the notional amount paid is recorded as a realized loss. Changes in the value of a credit default swap during the fiscal period are recognized as a component of "Change in net unrealized appreciation (depreciation) of swaps," and realized gains and losses are recognized as a component of "Net realized gain (loss) from swaps" on the Statement of Operations. The maximum potential amount of future payments the Fund could incur as a seller of protection in a credit default swap contract is limited to the notional amount of the contract. The maximum potential amount would be offset by the recovery value, if any, of the respective referenced entity.

During the fiscal year ended July 31, 2014, Short Duration Credit Opportunities (JSD) continued to invest in credit default swap contracts to provide a benefit if particular bonds' credit quality worsened.

The average notional amount of credit default swap contracts outstanding during the fiscal year ended July 31, 2014, was as follows:

    Short
Duration
Credit
Opportunities
(JSD)
 

Average notional amount of credit default swap contracts outstanding*

 

$

4,610,000

   

*  The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

The following table presents the fair value of all swap contracts held by the Funds as of July 31, 2014, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.

       

Location on the Statement of Assets and Liabilities

 

Underlying

 

Derivative

 

Asset Derivatives

 

(Liability) Derivatives

 

Risk Exposure

 

Instrument

 

Location

 

Value

 

Location

 

Value

 

Senior Income (NSL)

 

Interest rate

 

Swaps

   

   

$

   

Unrealized depreciation on interest rate swaps

 

$

(550,340

)

 

Floating Rate Income (JFR)

 

Interest rate

 

Swaps

   

   

$

   

Unrealized depreciation on interest rate swaps

 

$

(1,471,592

)

 

Floating Rate Income Opportunity (JRO)

 

Interest rate

 

Swaps

   

   

$

   

Unrealized depreciation on interest rate swaps

 

$

(872,730

)

 

Short Duration Credit Opportunities (JSD)

 

Interest rate

 

Swaps

   

   

$

   

Unrealized depreciation on interest rate swaps

 

$

(298,622

)

 

Credit

 

Swaps

  Unrealized appreciation on credit default swaps**    

45,485

     

     

   

Credit Strategies Income (JQC)

 

Interest rate

 

Swaps

   

   

$

   

Unrealized depreciation on interest rate swaps

 

$

(2,744,568

)

 

**  Some swap contracts require a counterparty to pay or receive a premium, which is disclosed on the Statement of Assets and Liabilities and is not reflected in the cumulative unrealized appreciation (depreciation) presented above.

Nuveen Investments
100



The following tables present the swap contacts subject to netting agreements, and the collateral delivered related to those swap contracts, as of July 31, 2014.

Fund

 

Counterparty

  Gross
Unrealized
Appreciation on
Interest Rate
Swaps***
  Gross
Unrealized
(Depreciation) on
Interest Rate
Swaps***
  Amounts
Netted on
Statement of
Assets and
Liabilities
  Net Unrealized
Appreciation
(Depreciation) on
Interest Rate
Swaps
  Collateral
Pledged
to (from)
Counterparty
  Net
Exposure
 

Senior Income (NSL)

 

 

Morgan Stanley

 

$

   

$

(550,340

)

 

$

   

$

(550,340

)

 

$

550,340

   

$

   

Floating Rate Income (JFR)

 

 

Morgan Stanley

 

$

   

$

(1,471,592

)

 

$

   

$

(1,471,592

)

 

$

1,471,592

   

$

   

Floating Rate Income Opportunity (JRO)

 

 

Morgan Stanley

 

$

   

$

(872,730

)

 

$

   

$

(872,730

)

 

$

872,730

   

$

   

Short Duration Credit Opportunities (JSD)

 
   

Barclays PLC

 

$

   

$

(177,639

)

 

$

   

$

(177,639

)

 

$

177,639

   

$

   
   

Morgan Stanley

   

     

(120,983

)

   

     

(120,983

)

   

120,983

     

   

Total

         

$

   

$

(298,622

)

 

$

   

$

(298,622

)

 

$

298,622

   

$

   

Credit Strategies Income (JQC)

 

 

Morgan Stanley

 

$

   

$

(2,744,568

)

 

$

   

$

(2,744,568

)

 

$

2,744,568

   

$

   

***  Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund's Portfolio of Investments.

Fund  

Counterparty

  Gross
Unrealized
Appreciation on
Credit Default Swaps***
  Gross
Unrealized
(Depreciation) on
Credit Default Swaps***
  Amounts
Netted on
Statement of
Assets and
Liabilities
  Net Unrealized
Appreciation
(Depreciation) on
Credit Default Swaps
  Collateral
Pledged
to (from)
Counterparty
  Net
Exposure
 

Short Duration Credit Opporutunities (JSD)

 

  Barclays PLC
Deutsche Bank
Morgan Stanley
 

$

10,158
34,228
1,099
 

$



 

$



 

$

10,158
34,228
1,099
 

$



 

$

10,158
34,228
1,099
 

Total

     

$

45,485

   

$

   

$

   

$

45,485

   

$

   

$

45,485

   
 

*** Represents gorss unrealized appreciation (depreciation) for the counterparty as reported in the Fund's Portfolio of Investments.

   

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the fiscal year ended July 31, 2014, and the primary underlying risk exposure.

Fund

  Underlying
Risk Exposure
  Derivative
Instrument
  Net Realized
Gain (Loss) from
Swaps
  Change in Net Unrealized
Appreciation (Depreciation) of
Swaps
 

Senior Income (NSL)

 

Interest

 

Swaps

 

$

(531,232

)

 

$

423,385

   

Floating Rate Income (JFR)

 

Interest

 

Swaps

 

$

(1,420,498

)

 

$

1,132,120

   

Floating Rate Income Opportunity (JRO)

 

Interest

 

Swaps

 

$

(842,428

)

 

$

671,405

   

Short Duration Credit Opportunities (JSD)

 
       

Credit

 

Swaps

 

$

(258,526

)

 

$

117,270

   
       

Interest

 

Swaps

   

(504,660

)    

146,284

   

Total

                 

$

(763,186

)

 

$

263,554

   

Credit Strategies Income (JQC)

 

Interest

 

Swaps

 

$

(2,646,702

)

 

$

2,084,814

   

Market and Counterparty Credit Risk

In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.

Nuveen Investments
101



Notes to Financial Statements (continued)

Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.

4. Fund Shares

Common Shares

Transactions in common shares were as follows:

   

Senior Income (NSL)

  Floating Rate
Income (JFR)
  Floating Rate
Income Opportunity (JRO)
 
    Year
Ended
7/31/14
  Year
Ended
7/31/13
  Year
Ended
7/31/14
  Year
Ended
7/31/13
  Year
Ended
7/31/14
  Year
Ended
7/31/13
 

Common shares:

 

Sold through shelf offering

   

     

5,798,036

     

22,610

     

6,888,559

     

43,186

     

7,155,904

   

Issued to shareholders due to reinvestment of distributions

   

3,421

     

36,601

     

4,199

     

54,601

     

5,155

     

30,879

   

Repurchased and retired

   

     

     

     

     

     

   

Total

   

3,421

     

5,834,637

     

26,809

     

6,943,160

     

48,341

     

7,186,783

   

Weighted average:

 

Premium to NAV per shelf offering share sold

   

%

   

5.32

%

   

1.46

%

   

3.70

%

   

1.34

%

   

4.92

%

 

Price per common share repurchased and retired

 

$

   

$

   

$

   

$

   

$

   

$

   

Discount per common share repurchased and retired

   

%

   

%

   

%

   

%

   

%

   

%

 

 

  Short Duration Credit
Opportuntities (JSD)
  Credit Strategies
Income (JQC)
 
    Year
Ended
7/31/14
  Year
Ended
7/31/13
  Year
Ended
7/31/14
  Seven Months
Ended
7/31/13
  Year
Ended
12/31/12
 

Common shares:

 

Sold through shelf offering

   

     

36,711

     

     

     

   

Issued to shareholders due to reinvestment of distributions

   

     

46,873

     

     

75,690

     

   

Repurchased and retired

   

     

     

(41,100

)

   

     

   

Total

   

     

83,584

     

(41,100

)

   

75,690

     

   

Weighted average:

 

Premium to NAV per shelf offering share sold

   

%

   

1.68

%

   

%

   

%

   

%

 

Price per common share repurchased and retired

 

$

   

$

   

$

9.16

   

$

   

$

   

Discount per common share repurchased and retired

   

%

   

%

   

11.17

%

   

%

   

%

 

Preferred Shares

Transactions in preferred shares for the Funds during the fiscal year ended July 31, 2014, where applicable, are noted in the following tables.

Transactions in VRTP Shares for the Funds were as follows:

 

Year Ended July 31, 2014

 

 

Series

 

Shares

 

Amount

 

Senior Income (NSL)

 

VRTP Shares issued

 

C-4

   

580

   

$

58,000,000

   

Floating Rate Income (JFR)

 

VRTP Shares issued

 

C-4

   

1,390

   

$

139,000,000

   

Floating Rate Income Opportunity (JRO)

 

VRTP Shares issued

 

C-4

   

980

   

$

98,000,000

 

Nuveen Investments
102



5. Investment Transactions

Long-term purchases and sales (including maturities but excluding derivative transactions) during the fiscal year ended July 31, 2014, were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Purchases

 

$

271,885,564

   

$

591,957,772

   

$

458,589,440

   

$

124,307,820

   

$

1,287,324,348

   

Sales and maturities

   

242,306,465

     

528,129,466

     

389,910,932

     

142,620,785

     

1,227,817,228

   

6. Income Tax Information

Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment company taxable income to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.

For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of timing differences in recognizing certain gains and losses on investment transactions and recognition of premium amortization (except for Senior Income (NSL). To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Funds.

As of July 31, 2014, the cost and unrealized appreciation (depreciation) of investments in securities (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Cost of investments

 

$

453,866,560

   

$

1,097,591,834

   

$

765,977,972

   

$

281,286,868

   

$

2,013,123,335

   

Gross unrealized:

 

Appreciation

 

$

8,341,385

   

$

21,481,872

   

$

17,189,277

   

$

5,383,658

   

$

38,918,749

   

Depreciation

   

(4,958,853

)

   

(13,167,388

)

   

(7,505,784

)

   

(371,651

)

   

(5,055,681

)

 

Net unrealized appreciation (depreciation) of investments

 

$

3,382,532

   

$

8,314,484

   

$

9,683,493

   

$

5,012,007

   

$

33,863,068

   

Permanent differences, primarily due to federal taxes paid, bond premium amortization adjustments, treatment of notional principal contracts, REIT adjustments, nondeductible offering costs, foreign currency transactions, securities litigation settlements, investments in partnerships, distribution reallocation and tax basis earnings and profits adjustments, resulted in reclassifications among the Funds' components of common share net assets as of July 31, 2014, the Funds' tax year end, as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Paid-in-surplus

 

$

(136,352

)

 

$

(265,220

)

 

$

(197,951

)

 

$

(2,985

)

 

$

(4,477,435

)

 

Undistributed (Over-distribution of) net investment income

   

(394,880

)

   

(887,781

)

   

(432,849

)

   

(106,461

)

   

5,709,006

   

Accumulated net realized gain (loss)

   

531,232

     

1,153,001

     

630,800

     

109,446

     

(1,231,571

)

 

Nuveen Investments
103



Notes to Financial Statements (continued)

The tax components of undistributed net ordinary income and net long-term capital gains as of July 31, 2014, the Funds' tax year end, were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Undistributed net ordinary income1

 

$

17,077

   

$

863,484

   

$

851,001

   

$

   

$

   

Undistributed net long-term capital gains

   

     

     

     

379,786

     

   

1  Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared on July 1, 2014, paid on August 1, 2014 .

The tax character of distributions paid during the Funds' tax years ended July 31, 2014 and July 31, 2013, was designated for purposes of the dividends paid deduction as follows:

2014   Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Distributions from net ordinary income2

 

$

17,878,566

   

$

43,668,950

   

$

31,713,135

   

$

14,693,598

   

$

90,269,865

   

Distributions from net long-term capital gains3

   

     

     

     

2,729,856

     

   
2013   Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)4
 

Distributions from net ordinary income2

 

$

19,766,814

   

$

49,637,370

   

$

34,999,480

   

$

16,661,199

   

$

54,593,575

   

Distributions from net long-term capital gains

   

     

     

     

224,732

     

   

The tax character of distributions paid during Credit Strategies Income's (JQC) tax year ended December 31, 2012, was designated for purposes of the dividends paid deduction as follows:

    Credit
Strategies
Income
(JQC)
 

Distributions from net ordinary income2

 

$

109,325,873

   

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.

3  The Funds designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended July 31, 2014.

4  For the seven months ended July 31, 2013.

As of July 31, 2014, the Funds' tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Credit
Strategies
Income
(JQC)
 

Expiration:

 

July 31, 2016

 

$

   

$

   

$

   

$

171,907,821

   

July 31, 2017

   

6,925,213

     

9,819,992

     

503,687

     

289,143,715

   

July 31, 2018

   

29,264,459

     

67,020,214

     

46,332,843

     

8,513,146

   

Not subject to expiration

   

503,162

     

     

     

   

Total

 

$

36,692,834

   

$

76,840,206

   

$

46,836,530

   

$

469,564,682

   

Nuveen Investments
104



During the Funds' tax year ended July 31, 2014, the following Funds utilized capital loss carryforwards as follows:

    Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Credit
Strategies
Income
(JQC)
 

Utilized capital loss carryforwards

 

$

5,713,997

   

$

4,309,637

   

$

31,322,614

   

The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the following fiscal year. The following Fund has elected to defer losses as follows:

  Floating
Rate
Income
(JFR)
 

Post-October capital losses5

 

$

102,090

   

Late-year ordinary losses6

   

   

5  Capital losses incurred from November 1, 2013 through July 31, 2014, the Fund's tax year end.

6  Ordinary losses incurred from January 1, 2014 through July 31, 2014, and specified losses incurred from November 1, 2013 through July 31, 2014.

7. Management Fees and Other Transactions with Affiliates

Each Fund's management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. Symphony is compensated for its services to the Funds from the management fees paid to the Adviser.

Each Fund's management fee consists of two components – a fund-level fee, based only on the amount of assets within 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 Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Average Daily Managed Assets*

  Senior Income (NSL)
Fund-Level Fee Rate
 

For the first $1 billion

   

.6500

%

 

For the next $1 billion

   

.6375

   

For the next $3 billion

   

.6250

   

For the next $5 billion

   

.6000

   

For managed assets over $10 billion

   

.5750

   

 

Average Daily Managed Assets*

  Floating Rate Income (JFR)
Floating Rate Income Opportunity (JRO)
Fund-Level Fee Rate
  Short Duration Credit Opportunities (JSD)
Fund-Level Fee Rate
  Credit Strategies Income (JQC)
Fund-level Fee Rate
 

For the first $500 million

   

.6500

%

   

.6500

%

   

.6800

%

 

For the next $500 million

   

.6250

     

.6375

     

.6500

   

For the next $500 million

   

.6000

     

.6250

     

.6300

   

For the next $500 million

   

.5750

     

.6125

     

.6050

   

For managed assets over $2 billion

   

.5500

     

.6000

     

.5800

   

Nuveen Investments
105



Notes to Financial Statements (continued)

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Complex-Level Managed Asset Breakpoint Level*

 

Effective Rate at Breakpoint Level

 
$55 billion    

.2000

%

 
$56 billion    

.1996

   
$57 billion    

.1989

   
$60 billion    

.1961

   
$63 billion    

.1931

   
$66 billion    

.1900

   
$71 billion    

.1851

   
$76 billion    

.1806

   
$80 billion    

.1773

   
$91 billion    

.1691

   
$125 billion    

.1599

   
$200 billion    

.1505

   
$250 billion    

.1469

   
$300 billion    

.1445

   

*  For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds that constitute ''eligible assets." Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of $2 billion added to the Nuveen fund complex in connection with the Adviser's assumption of the management of the former First American Funds effective January 1, 2011. As of July 31, 2014, the complex-level fee rate for these Funds was .1650%.

The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.

8. Senior Loan Commitments

Unfunded Commitments

Pursuant to the terms of certain of the variable rate senior loan agreements, the Funds may have unfunded senior loan commitments. Each Fund will maintain with its custodian, cash, liquid securities and/or liquid senior loans having an aggregate value at least equal to the amount of unfunded senior loan commitments. As of July 31, 2014, the Funds' outstanding unfunded senior loan commitments were as follows:

  Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
  Short
Duration
Credit
Opportunities
(JSD)
 

Outstanding unfunded senior loan commitments

 

$

133,735

   

$

793,786

   

$

551,839

   

$

133,735

   

Participation Commitments

With respect to the senior loans held in each Fund's portfolio, the Funds may: 1) invest in assignments; 2) act as a participant in primary lending syndicates; or 3) invest in participations. If a Fund purchases a participation of a senior loan interest, the Fund would typically enter into a contractual agreement with the lender or other third party selling the participation, rather than directly with the borrower. As such, the Fund not only assumes the credit risk of the borrower, but also that of the selling participant or other persons interpositioned between the Fund and the borrower. As of July 31, 2014, there were no such outstanding participation commitments in any of the Funds.

9. Borrowing Arrangements

The Funds have entered into borrowing arrangements ("Borrowings") as a means of leverage.

Senior Income (NSL), Floating Rate Income (JFR) and Floating Rate Income Opportunity (JRO)

The following Funds have entered into a credit agreement with an affiliate of Citibank N.A. through February 2, 2015. Each Fund's maximum commitment amount under its Borrowings is as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
 

Maximum commitment amount

 

$

127,000,000

   

$

307,000,000

   

$

214,000,000

   

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106



As of July 31, 2014, each Fund's outstanding balance on its Borrowings was as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
 

Outstanding balance on Borrowings

 

$

112,000,000

   

$

269,000,000

   

$

188,000,000

   

On December 30, 2013, each Fund amended its Borrowings with Citibank N.A. and decreased its maximum commitment amount. For the period August 1, 2013 through December 29, 2013, each Fund's maximum commitment amount under its Borrowings was as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
 

Maximum commitment amount

 

$

135,000,000

   

$

325,000,000

   

$

215,000,000

   

During the fiscal year ended July 31, 2014, the average daily balance outstanding and average annual interest rate on each Fund's Borrowings were as follows:

    Senior
Income
(NSL)
  Floating
Rate
Income
(JFR)
  Floating
Rate
Income
Opportunity
(JRO)
 

Average daily balance outstanding

 

$

114,238,356

   

$

274,189,589

   

$

189,355,890

   

Average annual interest rate

   

0.99

%

   

0.98

%

   

0.99

%

 

Interest charged on these Borrowings is based on a .75% per annum drawn fee on the amount borrowed and .15% per annum on the undrawn balance of the maximum commitment amount.

On December 30, 2013, each Fund incurred a one-time .15% amendment fee on its maximum commitment amount, which was fully expensed during the fiscal year ended July 31, 2014.

Short Duration Credit Opportunities (JSD) and Credit Strategies Income (JQC)

The following Funds have entered into a 364-day revolving line of credit, renewable annually, with Bank of America, N.A. ("Bank of America").

Each Fund's maximum commitment amount under its Borrowings is as follows:

    Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Maximum commitment amount

 

$

95,000,000

   

$

630,000,000

   

As of July 31, 2014, each Fund's outstanding balance on its Borrowings was as follows:

    Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Outstanding balance on Borrowings

 

$

85,000,000

   

$

606,000,000

   

On August 9, 2013, Short Duration Credit Opportunities (JSD) renewed its Borrowings with Bank of America and increased the maximum commitment amount on its Borrowings from $85 million to $95 million.

On January 17, 2014, Credit Strategies Income (JQC) renewed its Borrowings with Bank of America through February 17, 2014 and on February 18, 2014, the Fund renewed its Borrowings through February 27, 2014. On February 28, 2014, the Fund renewed its Borrowings through January 16, 2015, the renewal date. The Fund also accrues a one-time.10% amendment fee and a .02% arrangement fee based on the maximum commitment amount of the Borrowings through the renewal date.

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107



Notes to Financial Statements (continued)

During the fiscal year ended July 31, 2014, the average daily balance outstanding and average annual interest rate on each Fund's Borrowings were as follows:

    Short
Duration
Credit
Opportunities
(JSD)
  Credit
Strategies
Income
(JQC)
 

Average daily balance outstanding

 

$

85,000,000

   

$

573,205,479

   

Average annual interest rate

   

1.01

%

   

1.11

%

 

Short Duration Credit Opportunities' (JSD) interest is charged on its Borrowings at the 1-Month LIBOR (London Inter-Bank Offered Rate) plus .85% per annum or if the 1-Month LIBOR were to become unavailable, at a rate per annum equal to the greater of (a) the Federal Funds Rate plus 1.00%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its "prime rate" or (c) one minus the Eurodollar Reserve Percentage plus 1.00%. The Fund also accrues a (a) .25% per annum on the undrawn balance of the maximum commitment amount and (b) one-time 10% amendment fee based on the maximum commitment amount on the Borrowings through August 10, 2014, the renewal date.

Credit Strategies Income's (JQC), interest is charged on its Borrowings at the 1-Month LIBOR plus .95% per annum or at a rate per annum equal to the greater of (a) the Federal Funds Rate plus .50%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its "prime rate" or (c) one minus the Eurodollar Reserve Percentage plus 1.00%. The Fund also accrues a .25% per annum commitment fee on the undrawn balance of the maximum commitment amount.

On August 7, 2014, (subsequent to the close of this reporting period) Short Duration Credit Opportunities (JSD) terminated its Borrowings with Bank of America and entered into a 364-day $95 million (maximum commitment amount) revolving line of credit with its custodian bank. Interest is charged on these Borrowings at a rate per annum equal to the Overnight LIBOR plus .75% or if LIBOR were to become unavailable, the Federal Funds Rate plus .75%. The Fund also accrues a one-time upfront fee of .10% per annum on the maximum commitment amount of the Borrowings and a .10% per annum on the undrawn portion of the Borrowings of the maximum commitment amount.

Other Borrowings Information

In order to maintain their Borrowings, the Funds must meet certain collateral, asset coverage and other requirements. Each Fund's Borrowings outstanding is fully secured by eligible securities held in its portfolio of investments.

Each Funds' Borrowings outstanding is recognized as "Borrowings" on the Statement of Assets and Liabilities. Interest charged on the amount borrowed and other fees incurred on the Borrowings are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations.

10. New Accounting Pronouncement

Financial Accounting Standards Board ("FASB") Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements

During 2013, the FASB issued Accounting Standards Update ("ASU") 2013-08, "Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements," which amends the criteria that define an investment company and clarifies the measurement guidance and requires new disclosures for investment companies. ASU 2013-08 is effective for fiscal years beginning on or after December 15, 2013. Management has evaluated the implications of ASU 2013-08 and determined that the Funds' current disclosures already followed this guidance and therefore it does not have an impact on the Funds' financial statements or footnote disclosures.

11. Subsequent Events

Agreement and Plan of Merger

As previously described in Note 1 – General Information and Significant Accounting Policies, Agreement and Plan of Merger, the new investment management agreements and the new sub-advisory agreements have been approved by shareholders of the Funds.

The transaction is currently expected to close early in the fourth quarter of 2014, but remains subject to customary closing conditions.

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Additional

Fund Information

Board of Trustees

William Adams IV*

 

Robert P. Bremner

 

Jack B. Evans

 

William C. Hunter

 

David J. Kundert

 

John K. Nelson

 

William J. Schneider

 

Thomas S. Schreier, Jr.*

 

Judith M. Stockdale

 

Carole E. Stone

 

Virginia L. Stringer

 

Terence J. Toth

 

* Interested Board Member.

Fund Manager
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
  Custodian
State Street Bank
& Trust Company
Boston, MA 02111
  Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
  Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL 60606
  Transfer Agent and
Shareholder Services
State Street Bank
& Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
 

Quarterly Form N-Q Portfolio of Investments Information

Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.

Nuveen Funds' Proxy Voting Information

You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments 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 Investments toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.

CEO Certification Disclosure

Each Fund's Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

Common Share Information

Each Fund intends to repurchase shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

   

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

Common shares repurchased

   

     

     

     

     

41,100

   

Nuveen Investments
109



Additional Fund Information (continued)

Distribution Information: The following Fund hereby designates its percentage of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction ("DRD") for corporations and its percentage as qualified dividend income ("QDI") for individuals under Section 1(h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.

   

JQC

 
  % DRD      

1.05

%

 
  % QDI      

1.05

%  

The following Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying as Interest-Related Dividends as defined in Internal Revenue Code Section 871(k) for the taxable year ended July 31, 2014:

 

NSL

 

JFR

 

JRO

 

JSD

 

JQC

 

% of Interest-Related Dividends

   

90.90

%

   

73.61

%

   

77.11

%

   

95.38

%

   

98.65

%

 

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.

Nuveen Investments
110



Glossary of Terms

Used in this Report

n  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.

n  Barclays U.S. Aggregate Bond Index: An unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.

n  Collateralized Loan Obligation (CLO): A security backed by a pool of debt, often low rated corporate loans. Collateralized loan obligations (CLOs) are similar to collateralized mortgage obligations, except for the different type of underlying loan.

n  Convexity: A tool used in risk management to measure the sensitivity of bond duration to interest rate changes. Higher convexity generally means higher sensitivity to interest rate changes.

n  CSFB Leveraged Loan Index: A representative, unmanaged index of tradeable, senior, U.S. dollar-denominated leveraged loans. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.

n  Effective Leverage: Effective leverage is a fund's effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the fund's portfolio that increase the funds' investment exposure.

n  Equity Shelf Program: A type of public offering used in accordance with U.S. Securities and Exchange Commission (SEC) registration requirements. This program allows corporations to offer and sell securities for several years without a separate prospectus for each offering.

n  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.

n  Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.

n  Net Asset Value (NAV) Per Share: A fund's Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund's Net Assets divided by its number of shares outstanding.

n  Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

Nuveen Investments
111



Reinvest Automatically,

Easily and Conveniently

Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.

Nuveen Closed-End Funds Automatic Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.

By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.

It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

Easy and convenient

To make recordkeeping easy and convenient, each quarter you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.

How shares are purchased

The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.

The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

Call today to start reinvesting distributions

For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

Nuveen Investments
112



Board

Members & Officers

The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at twelve. None of the trustees who are not "interested" persons of the Funds (referred to herein as "independent trustees") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.

Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed
and Term(1)
  Principal
Occupation(s)
Including other
Directorships
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen by
Board Member
 

Independent Board Members:

         
nWILLIAM J. SCHNEIDER      
1944
333 W. Wacker Drive
Chicago, IL 60606
 
Chairman and Board Member
  1996
Class III
 

Chairman of Miller-Valentine Partners, a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; an owner in several other Miller Valentine entities; Board Member of Med-America Health System, Tech Town, Inc., a not-for-profit community development company, Board Member of WDPR Public Radio station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council.

 
203
 
nROBERT P. BREMNER      
1940
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  1996
Class III
 

Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. Company Institute.

 
203
 
nJACK B. EVANS      
1948
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  1999
Class III
 

President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm.

 
203
 
nWILLIAM C. HUNTER      
1948
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2004
Class I
 

Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University.

 
203
 
nDAVID J. KUNDERT      
1942
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2005
Class II
 

Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013), retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible.

 
203
 

Nuveen Investments
113



Board Members & Officers (continued)

Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed
and Term(1)
  Principal
Occupation(s)
Including other
Directorships
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen by
Board Member
 

Independent Board Members (continued):

         
nJOHN K. NELSON      
1962
333 West Wacker Drive
Chicago, IL 60606
 
Board Member
  2013
Class II
 

Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President's Council, Fordham University (since 2010); formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets-the Americas (2006-2007), CEO of Wholesale Banking North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading-North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City.

 
203
 
nJUDITH M. STOCKDALE      
1947
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  1997
Class I
 

Board Member, Land Trust Alliance (since June 2013) and U.S. Endowment for Forestry and Communities (since November 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994).

 
203
 
nCAROLE E. STONE      
1947
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2007
Class I
 

Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); Director, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007).

 
203
 
nVIRGINIA L. STRINGER      
1944
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2011
Class I
 

Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; former Member, Governing Board, Investment Company Institute's Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010).

 
203
 
nTERENCE J. TOTH      
1959
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2008
Class II
 

Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); 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); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Chairman, and Mather Foundation Board (since 2012), and a member of its investment committee; 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).

 
203
 

Nuveen Investments
114



Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed
and Term(1)
  Principal
Occupation(s)
Including other
Directorships
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen by
Board Member
 

Interested Board Members:

         
nWILLIAM ADAMS IV(2)      
1955
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2013
Class II
 

Senior Executive Vice President, Global Structured Products (since 2010); formerly, Executive Vice President, U.S. Structured Products, of Nuveen Investments, Inc. (1999-2010); Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda s Club Chicago.

 
203
 
nTHOMAS S. SCHREIER, JR.(2)      
1962
333 W. Wacker Drive
Chicago, IL 60606
 
Board Member
  2013
Class III
 

Vice Chairman, Wealth Management of Nuveen Investments, Inc. (since 2011); Co-President of Nuveen Fund Advisors, LLC; Chairman of Nuveen Asset Management, LLC (since 2011); Co-Chief Executive Officer of Nuveen Securities, LLC (since 2011); Member of Board of Governors and Chairman's Council of the Investment Company Institute; formerly, Chief Executive Officer (2000-2010) and Chief Investment Officer (2007-2010) of FAF Advisors, Inc.; formerly, President of First American Funds (2001-2010).

 
203
 
Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed(3)
  Principal
Occupation(s)
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen
by Officer
 

Officers of the Funds:

         
nGIFFORD R. ZIMMERMAN      
1956
333 W. Wacker Drive
Chicago, IL 60606
  Chief
Administrative
Officer
 

1988

 

Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst.

 
204
 
nCEDRIC H. ANTOSIEWICZ      
1962
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 

2007

 

Managing Director of Nuveen Securities, LLC.

 
97
 
nMARGO L. COOK      
1964
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 

2009

 

Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director-Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst.

 
204
 

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Board Members & Officers (continued)

Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed(3)
  Principal
Occupation(s)
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen
by Officer
 

Officers of the Funds (continued):

         
nLORNA C. FERGUSON      
1945
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 

1998

 

Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004).

 
204
 
nSTEPHEN D. FOY      
1954
333 W. Wacker Drive
Chicago, IL 60606
  Vice President
and Controller
 

1998

 

Managing Director (since 2014), formerly, Senior Vice President (2013-2014), and Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Senior Vice President (2010-2011), Formerly Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Certified Public Accountant.

 
204
 
nSCOTT S. GRACE      
1970
333 W. Wacker Drive
Chicago, IL 60606
  Vice President
and Treasurer
 

2009

 

Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation.

 
204
 
nWALTER M. KELLY      
1970
333 W. Wacker Drive
Chicago, IL 60606
  Chief Compliance
Officer and
Vice President
 

2003

 

Senior Vice President (since 2008) of Nuveen Investment Holdings, Inc.

 
204
 
nTINA M. LAZAR      
1961
333 W. Wacker Drive
Chicago, IL 60606
 
Vice President
 

2002

 

Senior Vice President of Nuveen Investment Holdings, Inc.

 
204
 
nKEVIN J. MCCARTHY      
1966
333 W. Wacker Drive
Chicago, IL 60606
  Vice President
and Secretary
 

2007

  Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, NWQ Holdings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC.
 
204
 

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Name,
Year of Birth
& Address
  Position(s) Held
with the Funds
  Year First
Elected or
Appointed(3)
  Principal
Occupation(s)
During Past 5 Years
  Number
of Portfolios
in Fund Complex
Overseen
by Officer
 

Officers of the Funds (continued):

         
nKATHLEEN L. PRUDHOMME      
1953
901 Marquette Avenue
Minneapolis, MN 55402
  Vice President and
Assistant Secretary
 

2011

 

Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010).

 
204
 
nJOEL T. SLAGER      
1978
333 West Wacker Drive
Chicago, IL 60606
  Vice President and
Assistant Secretary
 

2013

 

Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010).

 
204
 

(1)  Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex.

(2)  "Interested person" as defined in the 1940 Act, by reason of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.

(3)  Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.

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Annual Investment

Management Agreement Approval Process (Unaudited)

I.  The Approval Process

The Board of Trustees of each Fund (each, a "Board" and each Trustee, a "Board Member"), including the Board Members who are not parties to the Funds' advisory or sub-advisory agreements or "interested persons" of any such parties (the "Independent Board Members"), is responsible for overseeing the performance of the investment adviser and the sub-adviser to the respective Fund and determining whether to approve or continue such Fund's advisory agreement (each, an "Original Investment Management Agreement") between the Fund and Nuveen Fund Advisors, LLC (the "Adviser") and sub-advisory agreement (each, an "Original Sub-Advisory Agreement" and, together with the Original Investment Management Agreement, the "Original Advisory Agreements") between the Adviser and Symphony Asset Management LLC (the "Sub-Adviser"). Pursuant to the Investment Company Act of 1940, as amended (the "1940 Act"), each Board is required to consider the continuation of the respective Original Advisory Agreements on an annual basis. In addition, prior to its annual review, the Board Members were advised of the potential acquisition of Nuveen Investments, Inc. ("Nuveen") by TIAA-CREF (the "Transaction"). For purposes of this section, references to "Nuveen" herein include all affiliates of Nuveen Investments, Inc. providing advisory, sub-advisory, distribution or other services to the Funds and references to the "Board" refer to the Board of each Fund. In accordance with the 1940 Act and the terms of the Original Advisory Agreements, the completion of the Transaction would terminate each of the Original Investment Management Agreements and the Original Sub-Advisory Agreements. Accordingly, at an in-person meeting held on April 30, 2014 (the "April Meeting"), the Board, including all of the Independent Board Members, performed its annual review of the Original Advisory Agreements and approved the continuation of the Original Advisory Agreements for the Funds. Furthermore, in anticipation of the termination of the Original Advisory Agreements that would occur upon the consummation of the Transaction, the Board also approved for each Fund a new advisory agreement (each, a "New Investment Management Agreement") between the Fund and the Adviser and a new sub-advisory agreement (each, a "New Sub-Advisory Agreement" and, together with the New Investment Management Agreement, the "New Advisory Agreements") between the Adviser and the Sub-Adviser, each on behalf of the respective Fund to be effective following the completion of the Transaction and the receipt of the requisite shareholder approval.

Leading up to the April Meeting, the Independent Board Members had several meetings and deliberations, with and without management from Nuveen present and with the advice of legal counsel, regarding the Original Advisory Agreements, the Transaction and its impact and the New Advisory Agreements. At its meeting held on February 25-27, 2014 (the "February Meeting"), the Board Members met with a senior executive representative of TIAA-CREF to discuss the proposed Transaction. At the February Meeting, the Independent Board Members also established an ad hoc committee comprised solely of the Independent Board Members to monitor and evaluate the Transaction and to keep the Independent Board Members updated with developments regarding the Transaction. On March 20, 2014, the ad hoc committee met telephonically to discuss with management of Nuveen, and separately with independent legal counsel, the terms of the proposed Transaction and its impact on, among other things: the governance structure of Nuveen; the strategic plans for Nuveen; the operations of the Nuveen funds (which include the Funds); the quality or level of services provided to the Nuveen funds; key personnel that service the Nuveen funds and/or the Board and the compensation or incentive arrangements to retain such personnel; Nuveen's capital structure; the regulatory requirements applicable to Nuveen or fund operations; and the Nuveen funds' fees and expenses, including the funds' complex-wide fee arrangement. Following the meeting of the ad hoc committee, the Board met in person (two Independent Board Members participating telephonically) in an executive session on March 26, 2014 to further discuss the proposed Transaction. At the executive session, the Board met privately with independent legal counsel to review its duties with respect to reviewing advisory agreements, particularly in the

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context of a change of control, and to evaluate further the Transaction and its impact on the Nuveen funds, the Adviser and the Sub-Adviser (collectively, the "Fund Advisers" and each, a "Fund Adviser") and the services provided. Representatives of Nuveen also met with the Board to update the Board Members on developments regarding the Transaction, to respond to questions and to discuss, among other things: the governance of the Fund Advisers following the Transaction; the background, culture (including with respect to regulatory and compliance matters) and resources of TIAA-CREF; the general plans and intentions of TIAA-CREF for Nuveen; the terms and conditions of the Transaction (including financing terms); any benefits or detriments the Transaction may impose on the Nuveen funds, TIAA-CREF or the Fund Advisers; the reaction from the Fund Advisers' employees knowledgeable of the Transaction; the incentive and retention plans for key personnel of the Fund Advisers; the potential access to additional distribution platforms and economies of scale; and the impact of any additional regulatory schemes that may be applicable to the Nuveen funds given the banking and insurance businesses operated in the TIAA-CREF enterprise. As part of its review, the Board also held a separate meeting on April 15-16, 2014 to review the Nuveen funds' investment performance and consider an analysis provided by the Adviser of each sub-adviser of the Nuveen funds (including the Sub-Adviser) and the Transaction and its implications to the Nuveen funds. During their review of the materials and discussions, the Independent Board Members presented the Adviser with questions and the Adviser responded. Further, the Independent Board Members met in an executive session with independent legal counsel on April 29, 2014 and April 30, 2014.

In connection with their review of the Original Advisory Agreements and the New Advisory Agreements, the Independent Board Members received extensive information regarding the Funds and the Fund Advisers including, among other things: the nature, extent and quality of services provided by each Fund Adviser; the organization and operations of any Fund Adviser; the expertise and background of relevant personnel of each Fund Adviser; a review of each Fund's performance (including performance comparisons against the performance of peer groups and appropriate benchmarks); a comparison of Fund fees and expenses relative to peers; a description and assessment of shareholder service levels for the Funds; a summary of the performance of certain service providers; a review of fund initiatives and shareholder communications; and an analysis of the Adviser's profitability with comparisons to peers in the managed fund business. In light of the proposed Transaction, the Independent Board Members, through their independent legal counsel, also requested in writing and received additional information regarding the proposed Transaction and its impact on the provision of services by the Fund Advisers.

The Independent Board Members received, well in advance of the April Meeting, materials which responded to the request for information regarding the Transaction and its impact on Nuveen and the Nuveen funds including, among other things: the structure and terms of the Transaction; the impact of the Transaction on Nuveen, its operations and the nature, quality and level of services provided to the Nuveen funds, including, in particular, any changes to those services that the Nuveen funds may experience following the Transaction; the strategic plan for Nuveen, including any financing arrangements following the Transaction and any cost-cutting efforts that may impact services; the organizational structure of TIAA-CREF, including the governance structure of Nuveen following the Transaction; any anticipated effect on each Nuveen fund's expense ratios (including changes to advisory and sub-advisory fees) and economies of scale that may be expected; any benefits or conflicts of interest that TIAA-CREF, Nuveen or their affiliates can expect from the Transaction; any benefits or undue burdens or other negative implications that may be imposed on the Nuveen funds as a result of the Transaction; the impact on Nuveen or the Nuveen funds as a result of being subject to additional regulatory schemes that TIAA-CREF must comply with in operating its various businesses; and the costs associated with obtaining necessary shareholder approvals and the bearer of such costs. The Independent Board Members also received a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including in conjunction with a change of control, from their independent legal counsel.

The materials and information prepared in connection with the review of the Original Advisory Agreements and New Advisory Agreements supplemented the information and analysis provided to the Board during the year. In this regard, throughout the year,

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

the Board, acting directly or through its committees, regularly reviewed the performance and various services provided by the Adviser and Sub-Adviser. The Board met at least quarterly as well as at other times as the need arose. At its quarterly meetings, the Board reviewed reports by the Adviser regarding, among other things, fund performance, fund expenses, premium and discount levels of closed-end funds, the performance of the investment teams and compliance, regulatory and risk management matters. In addition to regular reports, the Adviser provided special reports to the Board or a committee thereof from time to time to enhance the Board's understanding of various topics that impact some or all the Nuveen funds (such as distribution channels, oversight of omnibus accounts and leverage management topics), to update the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Adviser. The Board also met with key investment personnel managing certain Nuveen fund portfolios during the year.

In addition, the Board has created several standing committees (the Executive Committee; the Dividend Committee; the Audit Committee; the Compliance, Risk Management and Regulatory Oversight Committee; the Nominating and Governance Committee; the Open-End Funds Committee; and the Closed-End Funds Committee). The Open-End Funds Committee and Closed-End Funds Committee are intended to assist the full Board in monitoring and gaining a deeper insight into the distinctive business practices of closed-end and open-end funds. These two Committees have met prior to each quarterly Board meeting, and the Adviser provided presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.

Further, the Board continued its program of seeking to have the Board Members or a subset thereof visit each sub-adviser to the Nuveen funds and meet key investment and business personnel at least once over a multiple year rotation.

The Board considered the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Original Advisory Agreements and its review of the New Advisory Agreements. The Independent Board Members also were assisted throughout the process by independent legal counsel. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the funds are the result of many years of review and discussion between the Independent Board Members and Nuveen fund management and that the Board Members' conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.

The Board considered all factors it believed relevant with respect to each Fund, including, among other things: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and the Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. With respect to the New Advisory Agreements, the Board also considered the Transaction and its impact on the foregoing factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Original Advisory Agreements and New Advisory Agreements. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.

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A.  Nature, Extent and Quality of Services

1.  The Original Advisory Agreements

In considering renewal of each Original Advisory Agreement, the Independent Board Members considered the nature, extent and quality of the respective Fund Adviser's services, including portfolio management services (and the resulting Fund performance) and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser's responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things: each Fund Adviser's organization and business; the types of services that each Fund Adviser or its affiliates provide to each Fund; the performance record of each Fund (as described in further detail below); and any initiatives Nuveen had taken for the closed-end fund product line.

In considering the services provided by the Fund Advisers, the Board recognized that the Adviser provides a myriad of investment management, administrative, compliance, oversight and other services for the Funds, and the Sub-Adviser generally provides the portfolio advisory services to the Funds under the oversight of the Adviser. The Board considered the wide range of services provided by the Adviser to the Nuveen funds beginning with developing the fund and monitoring and analyzing its performance to providing or overseeing the services necessary to support a fund's daily operations. The Board recognized the Adviser, among other things, provides: (a) product management (such as analyzing ways to better position a fund in the marketplace, maintaining relationships to gain access to distribution platforms and setting dividends); (b) fund administration (such as preparing a fund's tax returns, regulatory filings and shareholder communications; managing fund budgets and expenses; overseeing a fund's various service providers; and supporting and analyzing new and existing funds); (c) Board administration (such as supporting the Board and its committees, in relevant part, by organizing and administering the Board and committee meetings and preparing the necessary reports to assist the Board in its duties); (d) compliance (such as monitoring adherence to a fund's investment policies and procedures and applicable law; reviewing the compliance program periodically and developing new policies or updating existing compliance policies and procedures as considered necessary or appropriate; responding to regulatory requests; and overseeing compliance testing of sub-advisers); (e) legal support (such as preparing or reviewing fund registration statements, proxy statements and other necessary materials; interpreting regulatory requirements and compliance thereof; and maintaining applicable registrations); and (f) investment services (such as overseeing and reviewing sub-advisers and their investment teams; analyzing performance of the funds; overseeing investment and risk management; overseeing the daily valuation process for portfolio securities and developing and recommending valuation policies and methodologies and changes thereto; and participating in fund development, leverage management and the development of investment policies and parameters). With respect to closed-end funds, the Adviser also monitors asset coverage levels on leveraged funds, manages leverage, negotiates the terms of leverage, evaluates alternative forms and types of leverage, promotes an orderly secondary market for common shares and maintains an asset maintenance system for compliance with certain rating agency criteria.

In its review, the Board also considered the new services, initiatives or other changes adopted since the last advisory contract review that were designed to enhance the services and support the Adviser provides to the Nuveen funds. The Board recognized that some initiatives are a multi-year process. In reviewing the activities of 2013, the Board recognized that the year reflected the Adviser's continued focus on fund rationalization for both closed-end and open-end funds, consolidating certain funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain funds. As in the past, the Board recognized the Adviser's significant investment in its

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

technology initiatives, including the continued progress toward a central repository for fund and other Nuveen product data and implementing a data system to support the risk oversight group enabling it to provide more detailed risk analysis for the Nuveen funds. The Board noted the new data system has permitted more in-depth analysis of the investment risks of the Funds and across the complex providing additional feedback and insights to the investment teams and more comprehensive risk reporting to the Board. The Adviser also conducted several workshops for the Board regarding the new data system, including explaining the risk measures being applied and their purpose. The Board also recognized the enhancements in the valuation group within the Adviser, including centralizing the fund pricing process within the valuation group, trending to more automated and expedient reviews and continuing to expand its valuation team. The Board further considered the expansion of personnel in the compliance department enhancing the collective expertise of the group, investments in additional compliance systems and the updates of various compliance policies.

In addition to the foregoing actions, the Board also considered other initiatives related to the closed-end funds, including the continued investment of considerable resources and personnel dedicated to managing and overseeing the various forms of leverage utilized by certain funds. The Board recognized the results of these efforts included the development of less expensive forms of leverage, expansion of leverage providers, the negotiation of more favorable terms for existing leverage, the enhanced ability to respond to market and regulatory developments and the enhancements to technology systems to manage and track the various forms of leverage. The Board also noted Nuveen's continued capital management services, including executing share repurchase programs, its implementation of data systems that permit more targeted solicitation strategies for fund mergers and more targeted marketing and promotional efforts and its continued focus and efforts to address the discounts of various funds. The Board further noted Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive communication program designed to further educate the investor and analyst about closed-end funds. Nuveen's support services included, among other things, maintaining and enhancing a closed-end fund website, creating marketing campaigns and educational materials, communicating with financial advisers, sponsoring and participating in conferences, providing educational seminars and programs and evaluating the results of these marketing efforts.

As noted, the Adviser also oversees the Sub-Adviser who provides the portfolio advisory services to the Funds. In reviewing the portfolio advisory services provided to each Fund, the Nuveen Investment Services Oversight Team of the Adviser analyzes the performance of the Sub-Adviser and may recommend changes to the investment team or investment strategies as appropriate. In assisting the Board's review of the Sub-Adviser, the Adviser provides a report analyzing, among other things, the Sub-Adviser's investment team and changes thereto, organization and history, assets under management, the investment team's philosophy and strategies in managing each Fund, developments affecting the Sub-Adviser or the Funds and their performance. In their review of the Sub-Adviser, the Independent Board Members considered, among other things, the experience and qualifications of the relevant investment personnel, their investment philosophy and strategies, the Sub-Adviser's organization and stability, its capabilities and any initiatives taken or planned to enhance its current capabilities or support potential growth of business and, as outlined in further detail below, the performance of the Funds. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser's ability to attract and retain high quality investment personnel, preserve stability, and reward performance while not providing an inappropriate incentive to take undue risks.

Given the importance of compliance, the Independent Board Members also considered Nuveen's compliance program, including the report of the chief compliance officer regarding the Nuveen funds' compliance policies and procedures; the resources dedicated to compliance; the record of compliance with the policies and procedures; and Nuveen's supervision of the Funds' service providers. The Board recognized Nuveen's commitment to compliance and strong commitment to a culture

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of compliance. Given the Adviser's emphasis on monitoring investment risk, the Board has also appointed two Independent Board Members as point persons to review and keep the Board apprised of developments in this area and work with applicable Fund Adviser personnel.

Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to each Fund under the respective Original Advisory Agreement were satisfactory.

2.  The New Advisory Agreements

In evaluating the nature, quality and extent of the services expected to be provided by the Fund Advisers under the New Investment Management Agreements and the New Sub-Advisory Agreements, the Board Members concluded that no diminution in the nature, quality and extent of services provided to each Fund and its shareholders by the respective Fund Advisers is expected as a result of the Transaction. In making their determination, the Independent Board Members considered, among other things: the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of each Fund Adviser; the ability of each Fund Adviser to perform its duties after the Transaction, including any changes to the level or quality of services provided to the Funds; the potential implications of any additional regulatory requirements imposed on the Fund Advisers or the Nuveen funds following the Transaction; and any anticipated changes to the investment and other practices of the Nuveen funds.

The Board noted that the terms of each New Investment Management Agreement, including the fees payable thereunder, are substantially identical to those of the Original Investment Management Agreement relating to the same Fund. Similarly, the terms of each New Sub-Advisory Agreement, including fees payable thereunder, are substantially identical to those of the Original Sub-Advisory Agreement relating to the same Fund. The Board considered that the services to be provided and the standard of care under the New Investment Management Agreements and the New Sub-Advisory Agreements are the same as the corresponding original agreements. The Board Members noted the Transaction also does not alter the allocation of responsibilities between the Adviser and the Sub-Adviser. The Sub-Adviser will continue to furnish an investment program, make investment decisions and place all orders for the purchase and sale of securities, all on behalf of each Fund and subject to oversight of the Board and the Adviser. The Board noted that TIAA-CREF did not anticipate any material changes to the advisory, sub-advisory or other services provided to the Nuveen funds as a result of the Transaction. The Independent Board Members recognized that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent or quality of services. The Independent Board Members further noted that there were currently no plans for material changes to senior personnel at Nuveen or key personnel who provide services to the Nuveen funds and the Board following the Transaction. The key personnel who have responsibility for the Nuveen funds in each area, including portfolio management, investment oversight, fund management, fund operations, product management, legal/compliance and board support functions, are expected to be the same following the Transaction, although such personnel may have additional reporting requirements to TIAA-CREF. The Board also considered the anticipated incentive plans designed to retain such key personnel. Notwithstanding the foregoing, the Board Members recognized that personnel changes may occur in the future as a result of normal business developments or personal career decisions.

The Board Members also considered Nuveen's proposed governance structure following the Transaction and noted that Nuveen was expected to remain a stand-alone business within the TIAA-CREF enterprise and operate relatively autonomously from the other TIAA-CREF businesses, but would receive the general support and oversight from certain TIAA-CREF functional groups (such as legal, finance, internal audit, compliance, and risk management groups). The Board recognized, however, that Nuveen may be subject to additional reporting requirements as it keeps TIAA-CREF abreast of developments affecting the Nuveen business, may be required to modify certain of its reports, policies and procedures as necessary to conform to the

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

practices followed in the TIAA-CREF enterprise and may need to collaborate with TIAA-CREF with respect to strategic planning for its business.

In considering the implications of the Transaction, the Board Members also recognized the reputation and size of TIAA-CREF and the benefits that the Transaction may bring to the Nuveen funds and Nuveen. In this regard, the Board recognized, among other things, that the increased resources and support that may be available to Nuveen from TIAA-CREF and the improved capital structure of Nuveen Investments, Inc. (the parent of the Adviser) that would result from the significant reduction in its debt level may reinforce and enhance Nuveen's ability to provide quality services to the Nuveen funds and to invest further into its infrastructure.

Further, with the consummation of the Transaction, the Board recognized the enhanced distribution capabilities for the Nuveen funds as the funds may gain access to TIAA-CREF's distribution network, particularly through TIAA-CREF's retirement platform and institutional client base. The Board also considered that investors in TIAA-CREF's retirement platform may choose to roll their investments as they exit their retirement plans into the Nuveen funds. The Independent Board Members recognized the potential cost savings to the benefit of all shareholders of the Nuveen funds from reduced expenses as assets in the Nuveen fund complex rise pursuant to the complex-wide fee arrangement described in further detail below.

Based on their review, the Independent Board Members found that the expected nature, extent and quality of services to be provided to each Fund under its New Advisory Agreements were satisfactory and supported approval of the New Advisory Agreements.

B.  The Investment Performance of the Funds and Fund Advisers

1.  The Original Advisory Agreements

The Board, including the Independent Board Members, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of each Fund's performance and the applicable investment team. In considering each Fund's performance, the Board recognized that a fund's performance can be reviewed through various measures including the fund's absolute return, the fund's return compared to the performance of other peer funds and the fund's performance compared to its respective benchmark. Accordingly, the Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "Performance Peer Group") and with recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2013, as well as performance information reflecting the first quarter of 2014 (or for such shorter periods available for Nuveen Short Duration Credit Opportunities Fund (the "Credit Opportunities Fund"), which did not exist for part of the foregoing time frame). With respect to closed-end funds, the Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the Nuveen fund performance information provided to the Board at each of its quarterly meetings.

In evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data.

•  The performance data reflects a snapshot in time, in this case as of the end of the most recent calendar year or quarter. A different performance period, however, could generate significantly different results.

•  Long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance.

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•  The investment experience of a particular shareholder in a fund will vary depending on when such shareholder invests in such fund, the class held (if multiple classes offered in the fund) and the performance of the fund (or respective class) during that shareholder's investment period.

•  The usefulness of comparative performance data as a frame of reference to measure a fund's performance may be limited because the Performance Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Adviser classified the Performance Peer Groups of the Nuveen funds from highly relevant to less relevant. For funds classified with less relevant Performance Peer Groups, which include Nuveen Credit Strategies Income Fund (the "Credit Strategies Fund"), the Board considered each fund's performance compared to its benchmark to help assess the fund's comparative performance. A fund was generally considered to have performed comparably to its benchmark if the fund's performance was within certain thresholds compared to the performance of its benchmark and was considered to have outperformed or underperformed its benchmark if the fund's performance was beyond these thresholds for the one- and three-year periods, subject to certain exceptions.i While the Board is cognizant of the relative performance of a fund's peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund's investment objectives, investment parameters and guidelines and considered that the variations between the objectives and investment parameters or guidelines of the fund with its peers and/or benchmarks result in differences in performance results. Further, for funds that utilize leverage, the Board understands that leverage during different periods can provide both benefits and risks to a portfolio as compared to an unlevered benchmark.

With respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues and reviews the results of any efforts undertaken. The Board is aware, however, that shareholders chose to invest or remain invested in a fund knowing that the Adviser manages the fund and knowing the fund's fee structure.

In considering the performance data, the Independent Board Members noted that Nuveen Floating Rate Income Fund, Nuveen Floating Rate Income Opportunity Fund and Nuveen Senior Income Fund had demonstrated generally favorable performance in comparison to peers, performing in the first quartile over various periods.

With respect to the Credit Strategies Fund, which, as noted above, had a Performance Peer Group classified as less relevant, the Board considered such Fund's performance compared to its benchmark and noted that such Fund outperformed its benchmark over the one-, three- and five-year periods.

With respect to the Credit Opportunities Fund, the Board recognized that it was relatively new with a shorter performance history available thereby limiting the ability to make a meaningful assessment of performance.

Except as otherwise noted above, based on their review, the Independent Board Members determined that each Fund's investment performance had been satisfactory.

2.  The New Advisory Agreements

With respect to the performance of each Fund, the Board considered that the portfolio investment personnel responsible for the management of the respective Fund portfolios were expected to continue to manage such portfolios following the completion of the Transaction and the investment strategies of the Funds were not expected to change as a result of the Transaction (subject to changes unrelated to the Transaction that are approved by the Board and/or shareholders). Accordingly, the

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

findings regarding performance outlined above for the Original Advisory Agreements are applicable to the review of the New Advisory Agreements.

C.  Fees, Expenses and Profitability

1.  Fees and Expenses

The Board evaluated the management fees and expenses of each Fund, reviewing, among other things, such Fund's gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fees and expenses of a comparable universe of funds provided by an independent fund data provider (the "Peer Universe") and any expense limitations.

The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the limited size and particular composition of the Peer Universe (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe from year to year; levels of reimbursement or fee waivers; the timing of information used; and the differences in the type and use of leverage may impact the comparative data thereby limiting somewhat the ability to make a meaningful comparison with peers.

In reviewing the fee schedule for a fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. In reviewing fees and expenses (excluding leverage costs and leveraged assets for the closed-end funds), the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 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 Universe. In reviewing the reports, the Board noted that the majority of the Nuveen funds were at, close to or below their peer average based on the net total expense ratio. The Independent Board Members observed that the Funds had net management fees and net expense ratios (including fee waivers and expense reimbursements) below their respective peer averages.

Based on their review of the fee and expense information provided, the Independent Board Members determined that each 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

The Board recognized that all Nuveen funds have a sub-adviser, either affiliated or non-affiliated, and therefore the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative and other services it provides to support the Nuveen fund (as described above) and, while some administrative services may occur at the sub-adviser level, the fee to the sub-adviser generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members considered the fees a Fund Adviser assesses to the Funds compared to that of other clients. With respect to non-municipal funds, such other clients of a Fund Adviser may include: separately managed accounts (both retail and institutional accounts), hedge funds, foreign investment funds offered by Nuveen, collective trust funds, and funds that are not offered by Nuveen but are sub-advised by one of Nuveen's investment management teams.

The Independent Board Members reviewed the nature of services provided by the Adviser, including through its affiliated sub-advisers and the average fee the affiliated sub-advisers assessed such clients as well as the range of fees assessed to the different types of separately managed accounts (such as retail, institutional or wrap accounts) to the extent applicable to the

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respective sub-adviser. The Independent Board Members also noted that the Sub-Adviser also advises equity and taxable fixed-income hedge funds and reviewed the average fee and fee range assessed such funds as well as the performance fee. In their review, the Independent Board Members considered the differences in the product types, including, but not limited to: the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Nuveen funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. The Independent Board Members noted that, as a general matter, higher fee levels reflect higher levels of service, increased investment management complexity, greater product management requirements and higher levels of risk or a combination of the foregoing. The Independent Board Members further noted, in particular, that the range of services provided to the Funds (as discussed above) is generally much more extensive than that provided to separately managed accounts. Many of the additional administrative services provided by the Adviser are not required for institutional clients. The Independent Board Members also recognized that the management fee rates of the foreign funds advised by the Adviser may vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.

3.  Profitability of Fund Advisers

In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data, an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2013 and Nuveen's consolidated financial statements for 2013. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that two Independent Board Members served as point persons to review the profitability analysis and methodologies employed, and any changes thereto, and to keep the Board apprised of such changes. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses and profit margin compared to that of various unaffiliated management firms.

In reviewing profitability, the Independent Board Members noted the Adviser's continued investment in its business with expenditures to, among other things, upgrade its investment technology and compliance systems and provide for additional personnel and other resources. The Independent Board Members recognized the Adviser's continued commitment to its business should enhance the Adviser's capacity and capabilities in providing the services necessary to meet the needs of the Nuveen funds as they grow or change over time. In addition, in evaluating profitability, the Independent Board Members also noted the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses and that various allocation methodologies may each be reasonable but yield different results. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available, and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, an adviser's particular business mix, capital costs, size, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members noted the Adviser's adjusted operating margin appears to be reasonable in relation to other investment advisers and sufficient to operate as a viable investment management firm meeting its obligations to the Nuveen funds. Based on their review, the Independent

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

Board Members concluded that the Adviser's level of profitability for its advisory activities was reasonable in light of the services provided.

With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed such sub-advisers' revenues, expenses and profitability margins (pre- and post-tax) for their advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser's level of profitability was reasonable in light of the services provided.

In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates receive or are expected to receive that are directly attributable to the management of a Nuveen fund. See Section E below for additional information on indirect benefits the Fund Advisers may receive as a result of its relationship with a Nuveen fund. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the Funds were reasonable.

4.  The New Advisory Agreements

As noted above, the terms of the New Advisory Agreements are substantially identical to their corresponding Original Advisory Agreements. The fee schedule, including the breakpoint schedule and complex-wide fee schedule, in each New Advisory Agreement is identical to that under the corresponding Original Advisory Agreement. The Board Members also noted that Nuveen has committed for a period of two years from the date of closing the Transaction not to increase contractual management fee rates for any Nuveen fund. This commitment shall not limit or otherwise affect mergers or liquidations of any funds in the ordinary course. Based on the information provided, the Board Members did not believe that the overall expenses would increase as a result of the Transaction. In addition, the Board Members recognized that the Nuveen funds may gain access to the retirement platform and institutional client base of TIAA-CREF, and the investors in the retirement platforms may roll their investments into one or more Nuveen funds as they exit their retirement plans. The enhanced distribution access may result in additional sales of the Nuveen funds resulting in an increase in total assets under management in the complex and a corresponding decrease in overall management fees if additional breakpoints at the fund-level or complex-wide level are met. Based on its review, the Board determined that the management fees and expenses under each New Advisory Agreement were reasonable.

Further, other than from a potential reduction in the debt level of Nuveen Investments, Inc., the Board recognized that it is difficult to predict with any degree of certainty the impact of the Transaction on Nuveen's profitability. Given the fee schedule was not expected to change under the New Advisory Agreements, however, the Independent Board Members concluded that each Fund Adviser's level of profitability for its advisory activities under the respective New Advisory Agreements would continue to be reasonable in light of the services provided.

D.  Economies of Scale and Whether Fee Levels Reflect These Economies of Scale

1.  The Original Advisory Agreements

With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees

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as asset levels increase. Further, the Independent Board Members noted that, although closed-end funds may from time-to-time make additional share offerings, the growth of their assets would occur primarily through the appreciation of such funds' investment portfolios.

In addition to fund-level advisory fee breakpoints, the Board also considered the Nuveen funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.

Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement (as applicable) were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.

2.  The New Advisory Agreements

As noted, the Independent Board Members recognized that the fund-level and complex-wide schedules will not change under the New Advisory Agreements. Assets in the funds advised by TIAA-CREF or its current affiliates will not be included in the complex-wide fee calculation. Nevertheless, the Nuveen funds may have access to TIAA-CREF's retirement platform and institutional client base. The access to this distribution network may enhance the distribution of the Nuveen funds which, in turn, may lead to reductions in management and sub-advisory fees if the Nuveen funds reach additional fund-level and complex-wide breakpoint levels. Based on their review, including the considerations in the annual review of the Original Advisory Agreements, the Independent Board Members determined that the fund-level breakpoint schedules and complex-wide fee schedule continue to be appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale under the New Advisory Agreements.

E.  Indirect Benefits

1.  The Original Advisory Agreements

In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, with respect to closed-end funds, the Independent Board Members considered any revenues received by affiliates of the Adviser for serving as co-manager in initial public offerings of new closed-end funds as well as revenues received in connection with secondary offerings.

In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research that may be useful to a Fund Adviser in managing the assets of the fund and other clients. Each Fund's portfolio transactions are allocated by the Sub-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the applicable Fund's portfolio transactions. With respect to any fixed income securities, however, the Board recognized that such securities generally trade on a principal basis that does not generate soft dollar credits. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit the Funds and their shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Funds. The Independent Board Members noted that the

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Annual Investment Management Agreement Approval Process (Unaudited) (continued)

Sub-Adviser's profitability may be somewhat lower if it did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.

Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.

2.  The New Advisory Agreements

The Independent Board Members noted that, as the applicable policies and operations of the Fund Advisers with respect to the Nuveen funds were not anticipated to change significantly after the Transaction, such indirect benefits should remain after the Transaction. The Independent Board Members further noted the benefits the Transaction would provide to TIAA-CREF and Nuveen, including a larger-scale fund complex, certain shared services (noted above) and a broader range of investment capabilities, distribution capabilities and product line. Further, the Independent Board Members noted that Nuveen Investments, Inc. (the parent of the Adviser) would benefit from an improved capital structure through a reduction in its debt level.

F.  Other Considerations for the New Advisory Agreements

In addition to the factors above, the Board Members also considered the following with respect to the Nuveen funds:

•  Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. In this regard, to help ensure that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed for a period of two years from the date of the closing of the Transaction not to increase contractual management fee rates for any fund. This commitment shall not limit or otherwise affect mergers or liquidations of any funds in the ordinary course.

•  The Nuveen funds would not incur any costs in seeking the necessary shareholder approvals for the New Investment Management Agreements or the New Sub-Advisory Agreements (except for any costs attributed to seeking shareholder approvals of fund specific matters unrelated to the Transaction, such as election of Board Members or changes to investment policies, in which case a portion of such costs will be borne by the applicable funds).

•  The reputation, financial strength and resources of TIAA-CREF.

•  The long-term investment philosophy of TIAA-CREF and anticipated plans to grow Nuveen's business to the benefit of the Nuveen funds.

•  The benefits to the Nuveen funds as a result of the Transaction including: (i) increased resources and support available to Nuveen as well as an improved capital structure that may reinforce and enhance the quality and level of services it provides to the funds; (ii) potential additional distribution capabilities for the funds to access new markets and customer segments through TIAA-CREF's distribution network, including, in particular, its retirement platforms and institutional client base; and (iii) access to TIAA-CREF's expertise and investment capabilities in additional asset classes.

G.  Other Considerations

The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Original Advisory Agreement and New Advisory Agreement are fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund and that the Original Advisory Agreements be renewed and the New Advisory Agreements be approved.

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II.  Approval of Interim Advisory Agreements

At the April Meeting, the Board Members, including the Independent Board Members, unanimously approved for each Fund an interim advisory agreement (the "Interim Investment Management Agreement") between the respective Fund and the Adviser and an interim sub-advisory agreement (the "Interim Sub-Advisory Agreement") between the Adviser and the Sub-Adviser. If necessary to assure continuity of advisory services, each respective Interim Investment Management Agreement and Interim Sub-Advisory Agreement will take effect upon the closing of the Transaction if shareholders have not yet approved the corresponding New Investment Management Agreement or New Sub-Advisory Agreement. The terms of each Interim Investment Management Agreement and Interim Sub-Advisory Agreement are substantially identical to those of the corresponding Original Investment Management Agreement and New Investment Management Agreement and the corresponding Original Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, except for certain term and fee escrow provisions. In light of the foregoing, the Board Members, including the Independent Board Members, unanimously determined that the scope and quality of services to be provided to the Funds under the respective Interim Investment Management Agreements and Interim Sub-Advisory Agreements are at least equivalent to the scope and quality of services provided under the applicable Original Investment Management Agreements and Original Sub-Advisory Agreements.

i  The Board recognized that the Adviser considered a fund to have outperformed or underperformed its benchmark if the fund's performance was higher or lower than the performance of the benchmark by the following thresholds: for open-end funds (+/- 100 basis points for equity funds excluding index funds; +/- 30 basis points for tax exempt fixed income funds; +/- 40 basis points for taxable fixed income funds) and for closed-end funds (assuming 30% leverage) (+/- 130 basis points for equity funds excluding index funds; +/- 39 basis points for tax exempt funds and +/- 52 basis points for taxable fixed income funds).

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Nuveen Investments:

Serving Investors for Generations

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.

Focused on meeting investor needs.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed approximately $231 billion as of June 30, 2014.

Find out how we can help you.

To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.

Learn more about Nuveen Funds at: www.nuveen.com/cef

Distributed by Nuveen Securities, LLC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com/cef

EAN-A-0714D 3168-INV-Y09/15




 

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/CEF/Shareholder/FundGovernance.aspx. (To view the code, click on Code of Conduct.)

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

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 expert is Carole E. Stone, who is “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.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

NUVEEN FLOATING RATE INCOME OPPORTUNITY FUND

 

The following tables show the amount of fees that Ernst & Young LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.

 

The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).

 

SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND

 

 

 

Audit Fees Billed

 

Audit-Related Fees

 

Tax Fees

 

All Other Fees

 

Fiscal Year Ended

 

to Fund (1)

 

Billed to Fund (2)

 

Billed to Fund (3)

 

Billed to Fund (4)

 

July 31, 2014

 

$

29,500

 

$

5,500

 

$

0

 

$

18,000

 

 

 

 

 

 

 

 

 

 

 

Percentage approved pursuant to pre-approval exception

 

0

%

0

%

0

%

0

%

 

 

 

 

 

 

 

 

 

 

July 31, 2013

 

$

28,250

 

$

16,000

 

$

0

 

$

0

 

 

 

 

 

 

 

 

 

 

 

Percentage approved pursuant to pre-approval exception

 

0

%

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 calculation 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.

 



 

SERVICES THAT THE FUND’S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS

 

The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser” or “NFA”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.

 

The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.

 

 

 

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

 

Fiscal Year Ended

 

Service Providers

 

Service Providers

 

Service Providers

 

July 31, 2014

 

$

0

 

$

0

 

$

0

 

 

 

 

 

 

 

 

 

Percentage approved pursuant to pre-approval exception

 

0

%

0

%

0

%

 

 

 

 

 

 

 

 

July 31, 2013

 

$

0

 

$

0

 

$

0

 

 

 

 

 

 

 

 

 

Percentage approved pursuant to pre-approval exception

 

0

%

0

%

0

%

 

NON-AUDIT SERVICES

 

The following table shows the amount of fees that Ernst & Young LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP’s independence.

 

 

 

 

 

Total Non-Audit Fees

 

 

 

 

 

 

 

 

 

billed to Adviser and

 

 

 

 

 

 

 

 

 

Affiliated Fund Service

 

Total Non-Audit Fees

 

 

 

 

 

 

 

Providers (engagements

 

billed to Adviser and

 

 

 

 

 

 

 

related directly to the

 

Affiliated Fund Service

 

 

 

 

 

Total Non-Audit Fees

 

operations and financial

 

Providers (all other

 

 

 

Fiscal Year Ended

 

Billed to Fund

 

reporting of the Fund)

 

engagements)

 

Total

 

July 31, 2014

 

$

18,000

 

$

0

 

$

0

 

$

18,000

 

July 31, 2013

 

$

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.

 

Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.

 



 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

The registrant’s Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Terence J. Toth, Jack B. Evans, Carole E. Stone and David J. Kundert.

 

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.

 

Nuveen Fund Advisors, LLC, formerly known as Nuveen Fund Advisors, Inc., is the registrant’s investment adviser (also referred to as the “Adviser”).  The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services.  The Adviser has engaged Symphony Asset Management, LLC (“Symphony” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services.  As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser’s policies and procedures.  The Adviser periodically monitors the Sub-Adviser’s voting to ensure that it is carrying out its duties.  The Sub-Adviser’s proxy voting policies and procedures are summarized as follows:

 

SYMPHONY

 

Symphony has adopted and implemented proxy voting guidelines to ensure that proxies are voted in the best interest of its Clients.  These are merely guidelines and specific situations may call for a vote which does not follow the guidelines.  In determining how to vote proxies, Symphony will follow the Proxy Voting Guidelines of the independent third party which Symphony has retained to provide proxy voting services (“Symphony’s Proxy Guidelines”).

 

Symphony has created a Proxy Voting Committee to periodically review Symphony’s Proxy Guidelines, address conflicts of interest, specific situations and any portfolio manager’s decision to deviate from Symphony’s Proxy Guideline, (including the third party’s guidelines).  Under certain circumstances, Symphony may vote one way for some Clients and another way for other Clients.  For example, votes for a Client who provides specific voting instructions may differ from votes for Clients who do not provide proxy voting instructions.  However, when Symphony has discretion, proxies will generally be voted the same way for all Clients.  In addition, conflicts of interest in voting proxies may arise between Clients, between Symphony and its employees, or a lending or other material relationship.  As a general rule, conflicts will be resolved by Symphony voting in accordance with Symphony’s Proxy Guidelines when:

 

·                  Symphony manages the account of a corporation or a pension fund sponsored by a corporation in which Clients of Symphony also own stock.  Symphony will vote the proxy for its other Clients in accordance with Symphony’s Proxy Guidelines and will follow any directions from the corporation or the pension plan, if different than Symphony’s Proxy Guidelines;

 

·                  An employee or a member of his/her immediate family is on the Board of Directors or a member of senior management of the company that is the issuer of securities held in Client’s account;

 

·                  Symphony has a borrowing or other material relationship with a corporation whose securities are the subject of the proxy.

 

Proxies will always be voted in the best interest of Symphony’s Clients.  Those situations that do not fit within the general rules for the resolution of conflicts of interest will be reviewed by the Proxy Voting Committee.  The Proxy Voting Committee, after consulting with senior management, if appropriate, will determine how the proxy should be voted.  For example, when a portfolio manager decides not to follow Symphony’s Proxy Guidelines, the Proxy Voting Committee will review a portfolio manager’s recommendation and determine how to vote the proxy.  Decisions by the Proxy Voting Committee will be documented and kept with records related to the voting of proxies.  A summary of specific votes will be retained in accordance with Symphony’s Books and Records Requirements which are set forth Symphony’s Compliance Manual and Code of Ethics.

 



 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Nuveen Fund Advisors, LLC, formerly known as Nuveen Fund Advisors, Inc., is the registrant’s investment adviser (also referred to as the “Adviser”).  The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services.  The Adviser has engaged Symphony Asset Management LLC (“Symphony”, also referred to as “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio managers of the Sub-Adviser.

 

SYMPHONY ASSET MANAGEMENT LLC

 

A. PORTFOLIO MANAGER BIOGRAPHIES

 

The following individuals have primary responsibility for the day-to-day implementation of the registrant’s investment strategies:

 

·      Gunther Stein, Chief Investment Officer and Chief Executive Officer, Portfolio Manager

·      Scott Caraher, Portfolio Manager

 

Gunther Stein is Chief Investment Officer and Chief Executive Office at Symphony.  Mr. Stein is responsible for leading Symphony’s fixed-income and equity investments strategies and research and overseeing firm trading.  Prior to joining Symphony in 1999, Mr. Stein was a high yield portfolio manager at Wells Fargo Bank, where he managed a high yield portfolio, was responsible for investing in public high yield bonds and bank loans and managed a team of credit analysts.

 

Scott Caraher is a member of Symphony’s fixed-income team and his responsibilities include portfolio management and trading for Symphony’s bank loan strategies and credit and equity research for its fixed-income strategies.  Prior to joining Symphony in 2002, Mr. Caraher was an Investment Banking Analyst in the industrial group at Deutsche Banc Alex Brown in New York.

 

B. OTHER ACCOUNTS

 

OTHER ACCOUNTS MANAGED BY Gunther Stein as of 7/31/14

 

(a) Registered Investment Companies

 

 

 

Number of accounts

 

18

 

Assets

 

$

3,680,000,000

 

 

 

 

 

(b) Other Pooled Accounts

 

 

 

Non-performance fee Accounts

 

 

 

Number of Accounts

 

8

 

Assets

 

$

299,000,000

 

Performance fee Accounts

 

 

 

Number of Accounts

 

17

 

Assets

 

$

2,595,000,000

 

 

 

 

 

(c) Other Accounts

 

 

 

Non-performance fee Accounts

 

 

 

Number of accounts

 

13

 

Assets

 

$

132,000,000

 

Performance fee Accounts

 

 

 

Number of Accounts

 

6

 

Assets

 

$

255,000,000

 

 



 

OTHER ACCOUNTS MANAGED BY Scott Caraher as of 7/31/14

 

(a) Registered Investment Companies

 

 

 

Number of accounts

 

6

 

Assets

 

$

1,710,000,000

 

 

 

 

 

(b) Other pooled accounts

 

 

 

Non-performance fee accounts

 

 

 

Number of accounts

 

2

 

Assets

 

$

186,000,000

 

Performance fee accounts

 

 

 

Number of accounts

 

13

 

Assets

 

$

2,185,000,000

 

 

 

 

 

(c) Other

 

 

 

Non-performance fee accounts

 

 

 

Number of accounts

 

7

 

Assets

 

$

126,000,000

 

Performance fee accounts

 

 

 

Number of accounts

 

0

 

Assets

 

$

0

 

 

C. POTENTIAL MATERIAL CONFLICTS OF INTEREST

 

As described above, the portfolio managers may manage other accounts with investment strategies similar to the Fund, including other investment companies and separately managed accounts. Fees earned by the Sub-adviser may vary among these accounts and the portfolio managers may personally invest in some but not all of these accounts. These factors could create conflicts of interest because a portfolio manager may have incentives to favor certain accounts over others, resulting in other accounts outperforming the Fund. A conflict may also exist if a portfolio manager identified a limited investment opportunity that may be appropriate for more than one account, but the Fund is not able to take full advantage of that opportunity due to the need to allocate that opportunity among multiple accounts. In addition, the portfolio managers may execute transactions for another account that may adversely impact the value of securities held by the Fund. However, the Sub-adviser believes that these risks are mitigated by the fact that accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and other factors. In addition, the Sub-adviser has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.

 

D. FUND MANAGER COMPENSATION

 

Symphony investment professionals receive compensation based on three elements: fixed-base salary, participation in a bonus pool and certain long-term incentives.

 

The fixed-base salary is set at a level determined by Symphony and is reviewed periodically to ensure that it is competitive with base salaries paid by similar financial services companies for persons playing similar roles.

 

The portfolio manager is also eligible to receive an annual bonus from a pool based on Symphony’s aggregate asset-based and performance fees after all operating expenses.   The level of this bonus to each individual portfolio manager is determined by senior management’s assessment of the team’s performance, and the individual’s

 



 

contribution to and performance on that team.   Factors considered in that assessment include the total return and risk-adjusted total return performance of the accounts for which the individual serves as portfolio manager relative to any benchmarks established for those accounts; the individual’s effectiveness in communicating investment performance to investors and/or their advisors; and the individual’s contribution to the firm’s overall investment process and to the execution of investment strategies.  The portfolio manager also receives long-term incentives tied to the performance and growth of Symphony.

 

E. OWNERSHIP OF JRO SECURITIES AS OF JULY 31, 2014

 

Name of Portfolio Manager

 

Dollar range of equity securities beneficially owned in Fund

 

Gunther Stein

 

$50,001-$100,000

 

Scott Caraher

 

$100,001-$500,000

 

 



 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.

 

ITEM 11. CONTROLS AND PROCEDURES.

 

(a)

 

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)(17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

 

 

(b)

 

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 12. EXHIBITS.

 

File the exhibits listed below as part of this Form.

 

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/CEF/Shareholder/FundGovernance.aspx and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.)

 

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto.

 

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

 

(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto.

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Nuveen Floating Rate Income Opportunity Fund

 

By (Signature and Title)

/s/ Kevin J. McCarthy

 

 

Kevin J. McCarthy

 

 

(Vice President and Secretary)

 

 

Date: October 8, 2014

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)

/s/ Gifford R. Zimmerman

 

 

Gifford R. Zimmerman

 

Chief Administrative Officer

 

(principal executive officer)

 

Date: October 8, 2014

 

By (Signature and Title)

/s/ Stephen D. Foy

 

 

Stephen D. Foy

 

 

Vice President and Controller

 

 

(principal financial officer)

 

 

Date: October 8, 2014